Page 116 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes Gaurav
2011 ( )
Jan. 30 By Bill receivable 100

6.3.6 Bills Payable Book

Where either purchases are made for credit or loans are taken, then Bills are issued which are
termed as Bills Payable. The book in which these bills are recorded is termed as Bills Payable
Book. All such Bills are totalled after a lapse of a certain period and are posted in the accounts of
the creditors to whom such bills are issued. Following is the form of Bills Payable Book:
Bills Payable Book
Date To Term Drawer Acceptor Endorser Due Where L.F. Amount Remarks
Whom (s) Date payable ( )
Payable

Example: From the following transactions of a trader prepare the bills payable book
and post it into ledger:
2011
January 5 Accepted a bill at 3 m/d for 200 drawn by Rohen & Co.
January 20 gave acceptance at 2 m/d for 500 to Dhruv.
January 30 Acceptance at 1 m/d for 500 given to Feroz & Co.
Solution:
Bills Payable Book

Date Particulars Term Due Date L.F. Amount
( )
2011
Jan. 5 Rohen & Co. 3 m/d April 8 200
Jan. 20 Dhruv 2 m/d March 23 500
Jan. 30 Feroz & Co. 1 m/d March 30 500
1,200

Bills Payable Account
2011 ( )
Jan. 31 By Sundries as per 1,200
B/p Book

Rohen & Co.
2011 ( )
Jan. 5 By Bill Payable 200

Dhruv

2011 ( )
Jan. 20 By Bill Payable 500

110 LOVELY PROFESSIONAL UNIVERSITY