bills receivable account is which type of account plz explain in detail
it represents whom
also give golden rules of accounting of these 2 entries
BR A/C DR
TO DEBTORS A/C
CASH A/C DR
TO BR A/C
Somesh Agrawal (6 Points)
07 March 2019
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 07 March 2019
kajol
(Executive)
(201 Points)
Replied 07 March 2019
Bills Receivable is as assets and Bills Payable is the Liabilities.
It is used as security where both the parties (Seller & buyer) don't know each other, also discountable from the bank if drawer/seller ready to pay some amount of interest to the bank, also transferable to the creditor.
3 golden rules for BR A/C DR TO DEBTORS A/C
• debit the receiver , credit the giver
• debit what comes in , credit what goes out
• debit all the expenses and losses , credit all the incomes and gains
Question analysis
3 accounts affected
bank A/c - personal A/c , where bank is giver its credited as per rules
ashok a/c - personal a/c , hes the receiver of cash therefore hes debited as per rules
discount received - nominal account - its a income therefore its credited
Priya Kashyap
(Student)
(7053 Points)
Replied 07 March 2019
Somesh Agrawal
(6 Points)
Replied 07 March 2019
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
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