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 Bills	Date	To whom Given	Drawer	Payee	P/ble At	Term	Due Date	L.F.	Amt	Remarks

2)

Dr	Bills Payable Book				Cr
Date	To whom given	Term	Due Date	L.F.	Amount

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

Date
January 5,2009	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

Date	From whom received	Term	Due Date	L.F.	Amount
Jan 5,2009	Rahmat & Co.	3 m/d	April 8		200
Jan 20	Kamal	3 m/d	March 23		500
Jan 30	Feroz & Co.	1 m/d	March 30		500
					Total : 1200

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

Dr		Purchases Return Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				January 31,2005	By Sundry as per Bills Payable Book		1200

Dr		Rahmat & Co. Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January 8,2005	By Bills Payables		200

Dr		Kamal Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January 20,2005	By Bills Payables		500

Dr		Feroz and Co. Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January31,2005	By Bills Payables		500

Click here to go back to Subsidiary Books