Bills Receivable Book
When we sell goods on credit, sometimes we don't just trust the customer's word. We ask them to sign a legal document promising to pay. This document is a Bill of Exchange.
For the seller (us), it is a Bill Receivable (B/R) because we will receive money.
Purpose
To record all Bills Receivable drawn by us and accepted by our customers.
Format of Bills Receivable Book
| No. of Bill | Date Received | From Whom Received | Drawer | Acceptor | Where Payable | Date of Bill | Term | Due Date | L.F. | Amount (₹) | Remarks |
|---|---|---|---|---|---|---|---|---|---|---|---|
Key Columns:
- From Whom Received: Usually the debtor (customer).
- Term: Period of bill (e.g., 3 months).
- Due Date: Date of Bill + Term + 3 Days of Grace.
Solved Example
Record in B/R Book:
- Apr 01: Received a bill from Ramesh for ₹10,000, payable after 2 months.
- Apr 15: Drew a bill on Suresh for ₹5,000 for 3 months, accepted by him.
Solution: Bills Receivable Book
| No. | Date Recd | From Whom | Term | Due Date | L.F. | Amount (₹) |
|---|---|---|---|---|---|---|
| 1 | Apr 01 | Ramesh | 2m | Jun 04 | 10,000 | |
| 2 | Apr 15 | Suresh | 3m | Jul 18 | 5,000 | |
| Total | 15,000 |
Note on Due Date:
- Ramesh: Apr 01 + 2 months = Jun 01 + 3 days grace = Jun 04
- Suresh: Apr 15 + 3 months = Jul 15 + 3 days grace = Jul 18
Ledger Posting
-
Customer Accounts:
- Credit individual customer accounts.
- Entry: "By Bills Receivable A/c".
-
Bills Receivable Account:
- Debit the B/R Account with the Total at month-end.
- Entry: "To Sundries as per B/R Book".
Quiz
Test Your Knowledge
Question 1 of 4
1. Bills Receivable Book records:
💡 Final Wisdom: "A Bill Receivable is better than a simple promise. It's a promise with legal muscle!"