Bills Payable Book
Also known as a B/P book, a Bills payable book is a subsidiary or a secondary book of accounting where all bills of exchange, which are payable by the business, are recorded. The total value of all the bills payable for an accounting period is transferred to the ledger.
The person, who draws the bill of exchange, is called a “drawer” and the customer, on whom it is drawn, is called a “drawee” or an “acceptor”. A bill receivable for a “drawer” is a bill payable for a “drawee”. A bills payable account will usually have a credit balance and because it is supposed to be paid at maturity, it acts as a liability for the business. Generally, every bill has a 3-day grace period.
Sample Format of a B/P Book
|S.No.||Date of Bill||Bill No.||Name of Drawer||Payee||Terms||Date of Maturity||Amount||Remarks|