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Home Subdivision of Journal Bills Payable Book


Bills Payable Book:

Learning Objectives:

  1. Define and explain bills payable book.

  2. 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.


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


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

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.


Bills Payable Book

Date Particulars Term Due Date L.F. Amount

Jan. 5
"  20
"  30

Rahmat & Co.
Feroz & Co.


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

April 8
March 23
"      30


Bills Payable Account




Jan. 31

By Sundries as per B/p Book


Rahmat & Co.

Jan. 5

By Bill Payable







Jan. 20

By Bill Payable







Feroz & Co.

Jan. 31

By Bill Payable






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


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