The Bills Receivable Book is a detailed record of other persons' notes and acceptances received and afterward disposed of by our business.
The Bills Payable Book is a detailed record of our own notes and acceptances issued and after-ward redeemed by our business.
These records should be made from the notes and drafts themselves as they lie before us, from bills receivable when received, and from bills payable when issued ; the last column is filled in at the time of payment. Bill Books differ very much in form in the various offices, but the following general form is most suitable for the learner, as it will not only teach him the parties to a note or draft, but will enable him to understand any form of Bill Book ; this form is used as an auxiliary book, that is, as a book of record from which no posting is done ; through it the bookkeeper keeps track of the due dates, so that he may present the bills receivable for payment at the proper time, or have the necessary funds ready to meet the bills payable. In the form in Section 121, it is used as a principal book, and is really a Bill Journal from which posting is done.
Form of Bill Book—Used as an Auxiliary Book.
- The Bills Receivable, recorded below, are from Examples 2 and 3 in Sec. 86, and April 6 in Set VI. The Bills Payable are from Examples 5 and 6 in Sec. 86, and April 1 in Set VI. In the "Begins to Run" column is placed the date from which the time to run is reckoned. For drafts drawn payable "after date," enter the date of the draft as in Bills Rec. 1, and Bills Pay. 2 ; for drafts drawn payable " after sight," enter the date of acceptance, as in Bills Rec. 2 and Bills Pay. 1. An entry is made for "Endorser (note)," only when some outside party endorses as extra security; he is liable in case the maker fails to pay, just as the drawer of a draft is liable if the drawee fails to pay.
For the present, the Pupil may omit from his Bill Book the heading " Endorser (note)," leaving the single heading " Drawer (draft)."