Bill of Exchange

This total is debited to the “Bills Receivable Account” whereas the account of every individual debtor whom the bills received is credited in the ledger. The Bills Receivable Account is the account of an asset and would always have a debit balance. This balance on any date would represent the amount of bills receivable unmatured and on hand. . . Bills Payable Book It is maintained like a bills receivable book. It is meant to record all the details, relating to the bills accepted by a person or a party, which are retained for being use in the future, in case of need. The proforma of a bills payable book is given in Fig. . Bills Payable Book No. To Drawer Payee Where Term Due Ledger Amount Date Cash Remarks of of Whom payable date Folio paid Book Bill Bill given Folio Fig. . : Showing specimen Bills Payable Book The posting from this books are made to the debit of the account of every creditor to whom acceptance has been given and the periodical total of the books is credited to the ‘Bills Payable Account’ in the ledger. The bills payable account representing the liability of the acceptor in respect of bills accepted by him, always has a credit balance, if any. The credit balance of this account