Page 88 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes (c) Date of the bill: When the bill is drafted/drawn for obtaining the acceptance of the
buyer; who bought the goods on credit.
(d) Term: Modalities involved in the process of payment of the dues mentioned in the
bill.

(e) Date of Maturity: Date at which the bill is to be presented for collection from the
customer.
(f) Where payable: The place of amount payable by the customers or buyers who bought
the goods on credit.
(g) Amount (`): It reveals the amount how much to be collected from the customer
through either bill receivable or promissory note.

(h) How disposed: The process of the collection done should be recorded for future
verification in settling the dues of the customer.

2. Bills Payable Book: It is a book of bills payable or promissory notes accepted by the
enterprise to the suppliers at the moment of carrying out the credit purchase.

Proforma of the Bills Payable Book
Sl. Date Name of the Payee Date of Term Date of the Where Amt. Remarks
No Drawer the bill Maturity Payable `

The following are the some of the important components normally included in the book:
(a) Name of the drawer: Name of the person or concern, who or which draws the bill. This
is nothing but either the name of the seller or manufacturer or supplier of the goods
or raw materials.
(b) Payee: To whom the payment has to be paid.
(c) Date of the bill: Normally included to know the date at which the bill was drafted
which is under the possession of the seller or supplier.
(d) Date of Maturity: It is the date at which the payment has to be made as per the terms
of trade.

(e) Where payable: The place where the amount of the bills is to be paid.

8.7 Journal Proper

This journal is meant for recording all such transactions for which no special journal has been
maintained in the business. Therefore, in this journal, all such transactions are recorded which
do not occur frequently and for these transactions no special journal is required. For example,
if Machinery is purchased on credit, it will be recorded in the journal proper, because in the
Cash Book, we will record only cash purchases of machinery. Similarly, many other transactions,

which do not find their place in the special journals, will be recorded in the General Journal such
as
1. Outstanding expenses – Salaries outstanding, Rent outstanding, etc.
2. Prepaid expenses – Prepaid Rent, Salaries paid in advance
3. Income received in advance – Rent received in advance, interest received in advance, etc.

4. Accrued Incomes – Commission yet to be received, interest yet to be received.
5. Interest on Capital

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