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Home Accounting for Bills of Exchange Bills Receivable and Bills Payable Books
 
 

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

 

 

A D V E R T I S E M E N T

 

Financial Accounting Topics


  Introduction to Accounting
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  Transactions and Accounting Equation
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  Analysis of Business Transactions
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  Journal, Ledger and Trial Balance
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  Accounting for Bills of Exchange
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  Special Journals
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  Cash Book
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Bank Reconciliation Statement
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  Final Accounts
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  Work Sheet
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  Capital and Revenue Items
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  Valuation of Inventories
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  Accounts of Non-profit Making Organizations
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  Statement of Cash Flows
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  Accounting Ratios Analysis
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  Depreciation, Provisions and Reserves
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  Accounting Dictionary
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  Financial Calculators
 
 
 
Managerial Accounting Topics

  Financial Statements
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  Cost Volume Profit Relationship
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  Variable Costing System
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  Materials and Inventory Cost Control
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  Activity Based Costing System
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  Standard Costing and Variance Analysis
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  Balanced Scorecard
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  Capital Investment Analysis/Capital Budgeting
 

 

 

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