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What is the nature of Bills Receivable account, I mean is
it a real account or personal a/c?
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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 ? | 134 Yes | 30 No |
Answer / mohit pathak
bills receivable a/c is a personal in nature because it is represent person means debtor
| Is This Answer Correct ? | 55 Yes | 13 No |
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 ? | 14 Yes | 7 No |
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 |
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 |
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 |
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 |
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 |
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