Bills Receivable Book
Bills receivable (B/R) book is used for the reason of recording the particulars of bills receivable. The individual accounts of parties from whom bills are received will be credited with the amount in the bills receivable book. The periodic total is posted to the debit of bills receivable account in the ledger by writing “To sundries as per Bills Receivable Book”. Bill receivable book is division of supplementary books in which we record all bills whose payment, we have to get from our client at the instance of maturity.
When the number of bills or promissory notes received is large, instead of journalizing each receipt of bills, which would be cumbersome, a register to record all receipts of the bill is maintained. Every month these registers are totaled. Receipts of cash in respect of bills will be recorded in the cash book. Only the endorsement of bills in favor of other parties or discredit will be journalized.