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.
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.
these two special books are maintained in a
business, the general journal is used only for the
following bills transactions:
When a bill is endorsed in favor of a creditor.
bill receivable and a bill payable are dishonored.
bill is renewed.
Format of Bills Receivable and Bills
of bills receivable and bills payable book is shown