5.8 BILE BOOKS
You have learnt how transactions relating to bills can be recorded In the Journal. Rut, if the
dealings in bills are numerous, it is better to maintain separate books both for bills
receivable and bills payable. A book in which we record all bills receivable by the firm is
called 'Bills Receivable Journal' and the books in which we record all bills accepted and
puynble by the firm is called 'Bills Payable Journal'. Look at Figures 5.3 and 5.4 for rulings
of these two books.
5.8.1 Recording in Bills Receivable Journal and its Posting
As and when promissory notes or bills of exchange are received, the particulars are noted in
the Rills Receivable Journal as per tlla columm given.in Figure 5.3. Note that entries in Bills
Receivable Journal are made only at the time of receiving the bills from the drawee. The entries for their realisation and discounting are made in the Cash Book. Similarly the enties
for endorsement and dishonour of bills are made in Journal Proper. However, if a
discounted bill is dishonoured, the entry for dishonour will be made in the Cash Book, not
in the Journal Proper.
All entries made in Bills Receivable Joumal are posted to the credit side of the individual
accounts of the pqies from whom the bills were received. Periodic total of the Bills
Receivable Journal is posted to the debit of Bills Receivable Account by writing 'To
Sundries- as per B/R Journal '
5.8.2 Recording in Bills Payable Journal and its Posting
As and when the firm accepts the bills, they are entered in the Bills Payable Joumal as per
columns given in Figure 5.4. Note that entries for the payment of these bills are made in the
Cash Book and those for dishonour in the Journal Proper.
All entries made in the Bills Payable Journal are posted to the debit side of the individual
accounts of the parties at whose request the acceptances have been given. Periodical total of
the Bills Payable Journal is posted to the credit side of the Bill Payable Account by writing
'By Sundries -as per BP Journal'.
Look at Illustration 9 and study how transactions are recorded in Bills Receivable Journal
and Bills Payable Journal, and how they have been posted into ledger.
Illustration 9
The following are the bill transactions of Saptagiri Agencies, Hyderabad. All bills accepted
by Saptagiri Agencies are payable at the Andhra Bank, Hyderabad. Prepare Bills Receivablr
and Bills Payable Journals and post them into ledger.
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