Question
What is bills receivable and bills payable ?
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Answer
A person or trader who has to receive money from other peron or customer, draws a billon that person or customer. The person or customer on whom the bill is drawn acceptsthis bill. Here, it is a bill receivable for the person who draws the bill and it is a billpayable for the person who accepts the bill. This means it is a bill receivable for thecreditor and a bill payable for the debtor.
$(i)$ After accepting the bill, the drawee (acceptor) of the bill returns the bill to the drawerof the bill.
$(ii)$ A bill receivable is an asset for the drawer of the bill where as a bill payable is a liabilityfor the drawee (acceptor) of the bill.
$(i)$ After accepting the bill, the drawee (acceptor) of the bill returns the bill to the drawerof the bill.
$(ii)$ A bill receivable is an asset for the drawer of the bill where as a bill payable is a liabilityfor the drawee (acceptor) of the bill.
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