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
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 relevant articles:
-
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
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