Question

why do you maintain bill book separately?state the transaction recorded in bills receivable and bills payable book?

Answer 1

Bills Receivale Book and Bills Payable Book both record the transactions separately because of nature of transactions involved. ... Howerver, because Bills Receivable represents amount to be received by the business, it acts as an asset for the business, thus, usually carries a debit balance.

Answer 2

Bills receivable and bills payable books are journals (day books) to record in a chronological order the details of bills receivable and bills payable. When large number of bill transaction takes place in an organisation , it is covenient to maintain these books. Totals of bills received or accepted are posted periodically to bills receivable account and bills payable account respectively.