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Bills Payable Book

Bills payable book is a subsidiary book which is used to record all payables like promissory notes or hundies by the business. Individual amounts are regularly posted to the debit side of the individual creditor’s account. The periodic total is posted to the credit side of Bills Payable account in the ledger by writing “By Sundries as per Bills Payable Book”.

Format of bills payable Book

 

 

Date of Receipt

From Whom Received

Period of the bill

Due Date

L.F.

How Disposed

 

 

 

 

 

 

 

 

Illustration 7

  • Record the following transactions in a Bills Payable Book:
  • 2002
  • Feb. 1 Accepted a bill for ₹10,000 for 1 month drawn by M/s Bihari Lal & Sons.
  • Feb. 6 A bill at 60 days for ₹ 18,000 drawn by Mahabir & Co. Was accepted on this day.
  • Feb. 10 Gave acceptance to M/s Durga Parshad & Bros. for ₹ 25,000 payable 2 months after date.
Feb. 22 Gave acceptance to Shri Akash Lal’s bill for ₹ 50,000 payable 90 days after date.

 

Solution:

 

Date of Receipt

To Whom Given

Period of the bill

Due Date

L.F.

How Disposed

2002

 

 

 

 

 

 

Feb. 1 Bihari Lal & Sons 1 month March 4 10,000
Feb. 6 Mahabir & Co. 60 days April 10 18,000
Feb. 10 Durga Parshad & Bros. 2 months April 13 25,000
Feb. 22 Akash Lal 90 days May 26 50,000

Feb. 28

Bills Payable A/c

   Cr.

1,03,000

 





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