Bills Receivable Book and Bills Payable Book
It is very convenient to record transactions relating to bills of exchange in general journal, if transactions are a few. But in an organization, where numerous bills are drawn and accepted, special books are maintained to record transactions regarding bills of exchange these books are a part of journal, known as subsidiary books or special journal.
At regular intervals, amounts of various bills are totaled and the total of “Bills Receivable Book” shows the total amount of bills receivable and posted on the debit side of the “Bills Receivable Account” in the main ledger. The total of “Bills Payable Book” shows the total amount of bills accepted, which is posted on the Credit side of “Bills Payable Account”.
When these special journals are maintained, all transactions regarding bills of exchange are
recorded in these books except the following entries, which are recorded in “Generals Joumal”:
i). Entry for endorsement of bill.
ii). Entries for dishonoring of bill.
iii). Entry for renewal of bill.
Specimen/Format of Bills Receivable Book
Specimen/Format of Bills Payable Book
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.