Bills payable book
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:
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:
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
Acceptance received from Faisal for Rs. 1,000 payable after 60 days.
Farid’s bill for Rs. 1,000 payable after 6 months accepted.
Mohan’s acceptance for Rs. 700 payable after 90 days received.
The bills receivable and bills payable books are
prepared as follows: