Bills Payable Book

Bills payable book, also known as a B/P book is a subsidiary or secondary book of account in which transactions relating to bills of exchange are recorded. It includes the recording of bills that are payable by a business.

In a business where the number of bills exchanging hands is large in number, it is very useful, as it is tough to journalize all the bills drawn. A bills payable account generally has a credit balance as it is supposed to be paid at maturity and be a liability.

Format for B/P book

• The person, who draws the bill of exchange, is called a “drawer”.
• The customer, on whom it is drawn, is called a “drawee” or an “acceptor”.

Bills Payable A/c