Bill Receivable Book

 

Bills Receivable Book

Learn how bills receivable are recorded and managed systematically

📘 What is a Bills Receivable Book?

A Bills Receivable Book is a subsidiary book used to record all bills of exchange and promissory notes received by a business from its customers.

It provides a systematic record of bills that the business is entitled to receive money against on their respective due dates.

📘 Why is a Bills Receivable Book Used?

A business may receive many bills from different customers. Recording every bill separately in the Journal would make accounting work lengthy and inconvenient.

Therefore, bills received are recorded systematically in the Bills Receivable Book.

📘 Transactions Recorded

The Bills Receivable Book records bills received by the business, such as:

• Bills of exchange accepted by customers.
• Promissory notes received from customers.
• Bills that are due for payment on a future date.
• Details of bills that are received, endorsed or discounted as applicable.

📘 Simple Example

Suppose ABC Traders owes ₹20,000 to a business and accepts a bill of exchange for ₹20,000 payable after three months.

The business will record this bill in its Bills Receivable Book.

On the due date, the business will receive ₹20,000 from ABC Traders, subject to the normal accounting treatment.

📘 Important Details Recorded

A Bills Receivable Book generally contains important details such as:

• Date of the bill
• Name of the customer
• Amount of the bill
• Acceptance details
• Due date
• Details regarding endorsement, discounting or dishonour, where applicable

⭐ Important Point

A Bills Receivable represents an amount that the business expects to receive from another party on a future date.

Therefore, Bills Receivable is treated as an asset of the business.

📘 Quick Summary

• Bills Receivable Book records bills received from customers.
• It is a subsidiary book.
• It contains important details such as amount and due date.
• Bills Receivable represents an asset of the business.
• The bill is normally payable by the customer on its due date.