Bills Payable Book
Bills Payable Book:
Learning Objectives:
-
Define and explain bills payable book.
-
Prepare a bills payable book and post into ledger.
Definition and Explanation:
Bills payable book is used to record bill accepted by us. When a bill drawn by our creditor is accepted particulars of the same are recorded in this book.
Posting:
In the ledger, the account of each person whose bill has been accepted is debited with the amount of the bill. The monthly total of the bills accepted is credited to the bills payable account ledger.
Format of Bills Receivable Book:
The following is the ruling and format of bills payable book:
(1) Bills Payable Book
Date | To whom given | Drawer | Payee | Where payable | Term | Due date | L.F. | Amount | Remarks |
(2) Bills Payable Book
Date | To whom given | Term | Due date | L.F. | Amount |
Example:
From the following transactions of a trader prepare the bills payable book and post it into ledger:-
1991 | |
January 5 | Accepted a bill at 3 m/d for $200 drawn by Rahmat & Co. |
” 20 | gave acceptance at 2 m/d for $500 to Kamal. |
” 30 | Acceptance at 1 m/d for $ 500 given to Feroz & Co. |
Solution:
Bills Payable Book
Date | Particulars | Term | Due Date | L.F. | Amount |
1991 |
Rahmat & Co. Kamal Feroz & Co. |
|
April 8 March 23 ” 30 |
$ 200 500 500 |
|
1,200 |
Bills Payable Account
1991 |
By Sundries as per B/p Book |
$ |
Rahmat & Co.
1991 |
By Bill Payable |
$ |
Kamal
1991 |
By Bill Payable |
$
|
Feroz & Co.
1991 |
By Bill Payable |
$ |
You may also be interested in other articles from “subdivision of journal” chapter:
- Definition and Explanation of Cash Book
- Single Column Cash Book
- Two Column Cash Book/Double Column Cash Book
- Three Column Cash Book
- Bank Reconciliation Statement
- Petty Cash Book
- Purchases Day Book
- Purchases Returns Book
- Sales Day Book
- Sales Returns Book
- Bills Receivable Book
- Bills Payable Book
- Journal Proper