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: