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Bills Receivable and Bills Payable Books:

Recoding the transactions in general journal is very convenient, if the transactions are a few. But where numerous bills are drawn and accepted by a business man, than it is advisable for him to record them in special journals (books) known as bills receivable book and bills payable book. The bills drawn and received are recorded in bills receivable books and bills accepted are recorded in bills payable book.

The total of the bills receivable book shows the total amount of the bills drawn and received. This total will be posted to the debit side of bill receivable in ledger. The parties from whom the bills have been received will be credited with the amount shown against their names. In the same way, the total of the bills payable book will be posted to the credit side of bills payable account in ledger. The parties to whom acceptances have been given are debited.

When these two special books are maintained in a business, the general journal is used only for the following bills transactions:

  1. When a bill is endorsed in favor of a creditor.

  2. When a bill receivable and a bill payable are dishonored.

  3. When a bill is renewed.

Format of Bills Receivable and Bills Payable Book:

The format of bills receivable and bills payable book is shown below:

Bills Receivable Book

Serial No. Date From When Received L/R Name of Acceptors Date of Bill Term Due Date Where Payable Amount How disposed off Remarks
                       

Bills Receivable Book

Serial No. Date Name of Drawer L/R Name of Payee Term Due Date Where Payable Amount Remarks
                   

Relevant Articles:

» Definition and Explanation of Bill of Exchange
» Types and Classification of Bill of Exchange
» Accounting Treatment of Bill of Exchange
» Discounting of a Bill of Exchange
» Endorsement of Bill of Exchange
» Bill of Exchange Sent to Bank for Collection
» Dishonor of Bill of Exchange
» Renewal of Bill of Exchange
» Insolvency of One Party
» Retiring a Bill of Exchange Under Rebate
» Accommodation Bills of Exchange
» Bills Receivable and Bills Payable Books
» Promissory Note




 

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