Bills Receivable Book
Bills Receivable Book:
Learning Objectives:
-
Define and explain bills receivable book.
-
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 |
Abdullah & Co. Rahim Bakhish A. Riaz Bashir |
|
March 8 April 13 ” 21 March 3 |
$ 700 1,000 800 100 |
|
2,600 |
Bills Receivable Account
1991 |
By Sundries as per B/R Book |
$ |
Abdullah & Co.
|
1991
|
By Bill receivable |
$ |
Rahim Traders
1991
|
By Bill receivable |
$ |
A. Riaz
|
1991
|
By Bill receivable |
$ |
Bashir
|
1991
|
By Bill receivable |
$ |
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