What is the difference between Debtors and Bills Receivable?
In practical, where there exists the concept of Bills Receivable?
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 11 December 2009
Debtors is the amount that is due to be receivable from the customers. Bills receivable is the amount receivable on account of bills of exchange drawn in favour of you. Both are different terms. Bills of exchange are used in practical life also but are not in much use. But many times people mix bills receivable with debtors.
CA Anand Oberoi
(Chartered Accountant)
(296 Points)
Replied 11 December 2009
Generally.. debtors are the persons who ows money or money's worth to you in consideration for good/services received by them from you in normal course of business or trade. there is a documentry evidence (i.e. invoice, agreement, etc.) for the transaction.
Bills receivable is a written acknowledgement of owing money/money's worth and unconditional promise or order to pay it back to you after a certain time.
Practically.... bills of exchange are of great importance in foriegn trade (i.e. export and import) where banker of the exporter (i.e. seller) draw a bill receivable on banker of the importer(i.e. buyer) as the risk of non-payment is high in such contracts and this procedure ensures the timely payment.
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 11 December 2009
Anand .......good reply
| Originally posted by :anand | ||
| " | Generally.. debtors are the persons who ows money or money's worth to you in consideration for good/services received by them from you in normal course of business or trade. there is a documentry evidence (i.e. invoice, agreement, etc.) for the transaction. Bills receivable is a written acknowledgement of owing money/money's worth and unconditional promise or order to pay it back to you after a certain time. Practically.... bills of exchange are of great importance in foriegn trade (i.e. export and import) where banker of the exporter (i.e. seller) draw a bill receivable on banker of the importer(i.e. buyer) as the risk of non-payment is high in such contracts and this procedure ensures the timely payment. |
" |
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 15 December 2009
| Originally posted by :Amol Gopal Kabra | ||
| " | Debtors is the amount that is due to be receivable from the customers. Bills receivable is the amount receivable on account of bills of exchange drawn in favour of you. Both are different terms. Bills of exchange are used in practical life also but are not in much use. But many times people mix bills receivable with debtors. | " |
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