Question

Why do you maintain bill book separately? State the transactions recorded in Bill Receivable and

Bills Payable journals.

Answer 1

In bills receivable we record how much the debtor has to pay us
In bills payable we record how much amount we should pay to creditors

Answer 2

Bills are recorded separately sot as to avoid confusion during stock taking and checking and auditing procedures for the company, bills receivable is where the stock crossproducts sold to a particular customer is recorded,bills payable is where the stock purchased are recorded, bills receivable are debited while bills payable is credited,