Interested to Buy Any Domain ? << Click Here >> for more details...
What is the nature of Bills Receivable account, I mean is
it a real account or personal a/c?
- 11 Answers
- 53996 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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 |
what do u mean by single error and double error in accointing errors?
Can I freeze my account?
why is interest on capital an expense....??
where we posted capital ac in sole trader balance sheet and why?
Can i make invoice when my client apply for TIN Number ?
What will be the entry in book, stock get destroyed in fire of Rs. 1,00,000/- in two circumstances i) Stock is insured. ii) and stock is un-insured.
how to take print checks in tally
2 Answers SMS Pharmaceuticals,
Should I have perfect credit score, that is, above 800 credit score?
Expand---------TCSS
what is the process of excise duty?
How to treat the provision for bad debts which appear on credit side of the p&L A/c.
6 Answers Abhivrudhi, Capital IQ,
Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three
Audit 
