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
5 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 07 March 2019
it's a personal account as it's related to amount to be received from debtors who is a natural person
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
the entries passes by you are correct.
and it's a personal account cause bills receivable represents our debtors .
comment if I am correct?
and it's a personal account cause bills receivable represents our debtors .
comment if I am correct?
Somesh Agrawal
(6 Points)
Replied 07 March 2019
@ priya kashyap you are right but I want to know something else
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