Question of the Day: M&M Ltd. purchased raw material on credit. After 6 months they paid their supplier by cheque. Which of the following accounts in its books will get affected and how?
26
votes
Bank account - debit, Raw Material expense - credit, Bills payable - first credit then debit
Bank account - credit, Raw Material expense - debit, Bills payable - first credit then debit
Bank account - credit, Raw Material expense - debit, Bills payable - first debit then credit
Bank account - debit, Raw Material expense - credit, Bills payable - first debit then credit