At the point when the transactions are vast their account by methods of the journal entry for each exchange identifying with the bills turns out to be a very tedious and tiresome exercise. For this situation, they are recorded independently in unique subsidiary books. The bills receivables in the Bills Receivable Book and the bills payable in the Bills Payable Book. A crucial point regarding bill receivables and bills payable books is that they don’t record the transactions identifying with the bills. For example, identifying with bills discounted, endorsement, retirement, renewal and so forth, basically, have a passing reference in these books.
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Bills Receivable
It is utilized to record the full subtle elements of bills got from clients and others. Every one of the points of interest of the bill-date, acceptor’s name, sum, term, place of payment, and so on are entered in the bills receivable book for introduction and further reference.
Browse more Topics under Bill Of Exchange
- Meaning of Bill of Exchange and Promissory Note
- Maturity, Discounting, and Endorsement of Bill
- Basics of Accounting Treatment
- Renewal and Retiring of the Bill
- Dishonour of a Bill
The performa of a bills receivable book is given below
| No. of Bill | Date received | Date of Bill | From whom received | Drawer | Acceptor | Where payable | Term | Due date | Ledger folio |
| Amount | Cash book folio | Remarks |
The bills receivable book, similar to some other subsidiary book, is totaled intermittently.
This total is charged to the “Bills Receivable Account” although the account of each individual indebted person whom the bills received is credited in the books.
The Bills Receivable Account is the account of an asset and would in any condition have a debit balance. This equalization on any date would show the number of bills receivable un-matured and on hand.
Bills Payable
It is kept up like a bills receivable book. It is intended to record every one of the detailed elements, identifying with the bills acknowledged by an entity or a party, which are held for being utilized later on, in the event of need.
The performa of a bills receivable book is given below
| No. of Bill | Date of Bill | To whom given | Drawer | Payee | Where Payable | Term | Due Date | Ledger Folio | Amount paid |
| Date | Cash book folio | Remarks |
Entries are made in the bills payable book at whenever bills payable are acknowledged. Quickly, the individual account in the record is debited.
Toward the month’s end, the aggregate of bills payable book is presented creditor to whom to the credit of bills payable account is in the ledger, along these lines finishing the double entry for bills payable in the record.
Learn more about Bills of Exchange and Promissory Notes in detail.
Accommodation Bills
More often than not, bills of exchange or promissory notes are drawn to finance the real exchanges in goods. An acknowledgment is made to settle a trade debt owing to the drawer by the drawee in case of a bill of exchange. The bill is called a trade bill.
As it begins from real trade transaction it is for value got and is enforceable. Be that as it may, aside from financing transaction in products, bills of exchange and promissory notes may likewise be utilized for raising finance temporarily.
Such a bill is called  ‘accommodation bill’ as it is acknowledged by the drawee to accommodate the drawer. Consequently, the drawee is known as the ‘accommodating party’ and the drawer is known as the ‘accommodating party’.
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