Sunday, September 28, 2014

Bills Receivable book

This 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. The following is the format of bills receivable book:

1)


Dr
Bills Receivable Book
Cr
No. of BillsDateR/ved FromDrawerAceptorP/ble AtTermDue DateL.F.AmtRemarks

2)

Dr
Bills Receivable Book
Cr
DateFrom whom receivedTermDue DateL.F.Amount


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

Date
January 5,2009Drew a bill on Abishek & Co. at 2 m/d for $600
" 10Acceptance received from Ravi at 3 m/d for $ 900.
" 20A. Riaz gives his acceptance at 3 m/d for $700.
" 30Bill at 2 m/d for $100 is drawn on Basker

Solution


DateFrom whom receivedTermDue DateL.F.Amount
Jan 5,2009Abishek & Co2 m/dMarch 8600
Jan 10Ravi3 m/dApril 13900
Jan 20A. Riaz3 m/dApril 21700
Jan 30Basker2 m/dMarch 30100
/td>Total : 2300

Dr
Bills Receivables Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 30,2009 By Sundry as per B/R Book2300



Dr
Abishek & Co. Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 5,2014By Bills Receivables600


Dr
Ravi Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 10,2014By Bills Receivables900

Dr
A. Riaz Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 20,2014By Bills Receivables700

Dr
Abishek & Co. Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 30,2014By Bills Receivables100


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