Bills payable book
Details recorded in the bills payable book are the names of the parties whose bills are accepted, date of the bills payable, due date, amount, etc. The individual accounts of the parties whose bills are accepted will be debited with the corresponding amount in the bills payable book. The specimen of bills payable book is given below:
These columns record almost the same particulars which are recorded in the bills receivable book. When there is credit purchases of goods, the business entity may accept a bill drawn by the supplier or creditor. It is called bills payable for the business entity. Where there are large number of such bills payable, a separate bills payable book may be maintained. Thus, bills payable book is a subsidiary book maintained to record the details of bills payable.
The preparation of the bills receivable and bills payable book is explained through the following example:
July 1 Acceptance received from Nirmala for Rs. 5,000 payable after 3 months.
July 20 Acceptance given to Shailaja’s bill for Rs. 3,000 payable after 3 months
July 31 Acceptance received from Faisal for Rs. 1,000 payable after 60 days.
Aug. 5 Farid’s bill for Rs. 1,000 payable after 6 months accepted.
Aug.11 Mohan’s acceptance for Rs. 700 payable after 90 days received.
The bills receivable and bills payable books are prepared as follows: