Bills Receivable and Bills Payable Books
When the transactions are large their recording by means of journal entry for every transaction relating to the bills become very cumbersome and time consuming exercise. In this case, they are recorded separately in special subsidiary books, the bills receivables in the Bills Receivable Book and the bills payable in the Bills Payable Book. An important point in connection with bill receivables and bills payable books is that they do not record the transactions relating to the bills, e.g. relating to bills discounted, endorsement, retirement, renewal etc.; simply have a passing reference in these books.