Monday, September 29, 2014

Bills Payable Book

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:

Dr
Bills Payable Book
Cr
No. of BillsDateTo whom GivenDrawerPayeeP/ble AtTermDue DateL.F.AmtRemarks

2)

Dr
Bills Payable Book
Cr
DateTo whom givenTermDue DateL.F.Amount


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

Date
January 5,2009Accepted a bill at 3 m/d for $200 drawn by Rahmat & Co
" 20gave acceptance at 2 m/d for $500 to Kamal.
" 30Acceptance at 1 m/d for $ 500 given to Feroz & Co.

Solution

DateFrom whom receivedTermDue DateL.F.Amount
Jan 5,2009Rahmat & Co.3 m/dApril 8200
Jan 20Kamal3 m/dMarch 23500
Jan 30Feroz & Co.1 m/dMarch 30500
Total : 1200

Now the individual entries are posted in their respective Ledgers as shown below:

Dr
Purchases Return Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount



January 31,2005By Sundry as per Bills Payable Book1200


Dr
Rahmat & Co. Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
January 8,2005By Bills Payables200



Dr
Kamal Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
January 20,2005By Bills Payables500



Dr
Feroz and Co. Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
January31,2005By Bills Payables500



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