Bills Receivable Book


Bills Receivable Book:

Learning Objectives:

  1. Define and explain bills receivable book.

  2. Prepare a bills receivable book and post into ledger.

Definition and Explanation:

Bills receivable book is used to record the bills received from debtors. When a bill is received, details of it are recorded in the bills receivable book.

Posting:

In the ledger the account of the person from whom each bill is received is credited with the amount of that bill and the periodical total of the book is posted to the debit of bills receivable account.

the bills receivable book is ruled according to the requirements of a particular account.

Format of Bills Receivable Book:

The following is the format of bills receivable book:

(1) Bills Receivable Book

No. of Bills Date From whom received Drawer Acceptor Where payable Term Due date L.F. Amount Remarks

(2) Bills Receivable Book

Date From whom received Term Due date L.F. Amount

Example:

From the following transactions of a trader prepare the bills receivable book and post it into ledger:-

1991
January 5 Drew a bill on Abdullah & Co. at 2 m/d for $700.
”     10 Acceptance received from Rahim Bakhish at 3 m/d for $ 1,000.
”     20 A. Riaz gives his acceptance at 3 m/d for $800.
”     30 Bill at 2 m/d for $100 is drawn on Bashir.

Solution:

Bills Receivable Book

Date Particulars Term Due Date L.F. Amount

1991
Jan. 5
”  10
”  20
”  30


Abdullah & Co.
Rahim Bakhish
A. Riaz
Bashir


2 m/d
3 m/d
3 m/d
2m/d


March 8
April 13
”     21
March 3
$
700
1,000
800
100
2,600

Bills Receivable Account

1991
Jan. 30


By Sundries as per B/R Book

$
2,600


Abdullah & Co.



1991
Jan. 5


By Bill receivable

$
700

Rahim Traders


1991
Jan. 10


By Bill receivable

$
1,000

A. Riaz



1991
Jan. 30


By Bill receivable

$
800

Bashir



1991
Jan. 30


By Bill receivable

$
100

You may also be interested in other articles from “subdivision of journal” chapter:

  1. Definition and Explanation of Cash Book
  2. Single Column Cash Book
  3. Two Column Cash Book/Double Column Cash Book
  4. Three Column Cash Book
  5. Bank Reconciliation Statement
  6. Petty Cash Book
  7. Purchases Day Book
  8. Purchases Returns Book
  9. Sales Day Book
  10. Sales Returns Book
  11. Bills Receivable Book
  12. Bills Payable Book
  13. Journal Proper

Other Related Accounting Articles:

Recommended Books !



Or

Download E accounting book in MS-word format for just 20 $ - Click here to Download
This entry was posted in Bill, Subdivision of Journal and tagged , . Bookmark the permalink.

Comments / Questions

No Comments or Questions yet be the first to comment.



Leave a comment or question

(required)

(required)