What is the nature of Bills Receivable account, I mean is
it a real account or personal a/c?

Answers were Sorted based on User's Feedback



What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / mohit pathak

Both B/R and B/P are personal A/cs… To be more apt, they are Representative Personal A/c



Why??

Both these accounts represent Debtors or creditors of a particular entity.

The rule followed to pass entry in such cases is:

Dr. the receiver of the benefit

Cr. The giver of the benefit.

In the above rule ,the inner meaning of rule. Suppose when B/R is issued, it’s Dr. because that B/R represents Debtor from whom money is receivable... In a way our entity has given those debtors a benefit i.e. credit so as per rule we Dr. B/R a/c( at the time of issue).



Similarly B/P which is issued against creditors and it represent the liability towards creditors... It’s credited because Creditors have given us the benefit i.e. credit. So we Cr. B/P A/c(at the time of issue)



To be more clear and to the point, Both B/R and B/P cannot be Real A/c… Real a/c applies to assets of an entity.. These B/R and B/P are not assets because they are not yet acquired as like Plant, building etc. They are yet to be encashed. Asset means which has been acquired and has some value.



Hence, Bills Receivable and Bills Payable are Representative Personal A/cs.



Hope you have understood. If not, ask again without hesitation.

Is This Answer Correct ?    128 Yes 29 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / mohit pathak

bills receivable a/c is a personal in nature because it is represent person means debtor

Is This Answer Correct ?    54 Yes 12 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / abhinav

Debtors is a
personal A/c
that is for
sure.
B/R and B/P
should be of
same type.If
we classify B/
R as real then
what about B/
P it can't be a
real A/c becoz
its not an
asset.
So I believe it
should be a
personal A/c.

But my book
says B/R is a
real ac..
I am still
confused!

Is This Answer Correct ?    13 Yes 7 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / anas

I think bills receivables are real account. As biils are negotiable instruments and treated as current asset bothe bills receivables and payables are real accounts. But if it is accounts recevables or payables it can be representative personal accounts. 

Is This Answer Correct ?    20 Yes 15 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / honey

Bills receivable and bills payable A/c's are personal accounts because these are representative personal accounts

Is This Answer Correct ?    2 Yes 0 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / aman kumar singh

Bill receivable must be real a/c because it an asset I.e current a/c because all assest are real a/c whether tangible aur intangible .it can't personal a/c I.e represent it be personal s/c because from amount to be received from debtor his liability is over after issuing bills

Is This Answer Correct ?    4 Yes 4 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / rima pramanick

Debtor is also treated as asset then why we treat it as personal accounts and bills receivable as real although the majority of both of this meaning is same!!!!???

Is This Answer Correct ?    0 Yes 0 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / rajendra

B/R a/c is a personal a/c or a real a/c ?

Is This Answer Correct ?    4 Yes 5 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / fakhruddin a.m.

this is a real a/c called debtors

Is This Answer Correct ?    32 Yes 34 No

What is the nature of Bills Receivable account, I mean is it a real account or personal a/c?..

Answer / ajay kumar srivastava

B/R is personal account until it is
encashed because it has no real value
until encashed.B/P is also a personal
acccount until it is paid because all the
liabilities are personal account.

Is This Answer Correct ?    5 Yes 8 No

Post New Answer



More Accounting AllOther Interview Questions

How Many Types of Excise Duties?

0 Answers  


where we have file E-returns in SAP FICO-CIN/Wtax?

0 Answers   Wipro,


what is diffference between retail invoice and tax invoice ?

2 Answers   Octopus,


WHAT DO YOU MEAN BY BANK RECONCILIATION STATEMENT AND MIS RERORT

3 Answers  


Give me total Details of payroll calculation, payslip with examples.

0 Answers  






What is deffered tax liability and how it is adjusted in future.Should we take it as part of networth

1 Answers  


Expand ________FICCI

1 Answers  


What are the types of journal categories available in the Oracle AP?

0 Answers  


How to Maintain Medical Stores accounts in Tally?Please send me full details???????????????? thanks

1 Answers  


Can you say the Sub-Fields of Accounting

2 Answers  


What is meant by Intangible Assets?

5 Answers  


EXPAND___________LAN

3 Answers  






Categories