Question -
Answer -
Maintaining bills payable book has following benefits:
1. Quick, efficient and accurate recording of business transactions.
2. Minimizes the chances of fraud as all the bills are recorded at one place
3. A high degree of accountability and answerability on part of the accountant is observed as all the transactions get verified by the same person which leads to easy detection and rectification of errors.
4. As information is documented by an individual, it improves the division of labour and efficiency of organization.
Procedure of posting to ledger:
The recordings from the Bills Payable Book are posted to the accounts of the creditors who received acceptance from the debtors. These books are then totaled periodically and credited to the Bills Payable Account in the ledger.