Bills Receivable Book and Bills Payable Book

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on February 27, 2023

It is often convenient to record transactions relating to bills of exchange in the general journal. This is especially true when there are only a few transactions.

However, in small, medium-sized, and large organizations, where numerous bills are drawn and accepted every day, special books need to be maintained to record transactions for bills of exchange.

These books are a part of the journal known as the subsidiary books or special journal.

At regular intervals, the amounts of various bills are totaled, and the total of the Bills Receivable Book shows the total amount of bills receivable.

This is posted on the debit side of the Bills Receivable account in the main ledger.

The total of the Bills Payable Book shows the total amount of bills accepted, which is posted on the credit side of the Bills Payable account.

When these special journals are maintained, all transactions regarding bills of exchange are recorded in these books, except for the following entries (instead, these are recorded in general journal):

  • Entry for endorsement of bill
  • Entries for dishonoring bill
  • Entry for renewal of bill

Specimen/Format of Bills Receivable Book

Bill Receivable Book Format

Specimen/Format of Bills Payable Book

Bills Payable Books Format

Bills Receivable Book and Bills Payable Book FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.