Normally bill transactions can be recorded in the Journal Proper. But, if dealings in bills are numerous, it is better to maintain separate books both for bills receivable and bills payable. A book in which we record all bills receivable by the firm is called 'Bills Receivable Book' and the book in which we record all bills accepted and payable by the firm is called 'Bills Payable Book'. Look at Figure 10.8 and 10.9 for rulings of these two books.

Recording in Bills Receivable Journal and its Posting: As and when promissory notes or bills of exchange are received, the particulars are noted in the Bills Receivable Journal as per the columns given in Figure 10.8. Note that entries in Bills Receivable Journal are made only at the time of receiving the bill from the drawee. The entries for their realization and discounting are made in the Cash Book. Similarly, entries for endorsement and dishonor of bills are also made in the Journal Proper. However, if a discounted bill is dishonoured the entry for dishonor will be made in the Cash Book, not in the Journal Proper. All entries made in the Bills Receivable Journal are posted to the credit side of the individual accounts of the parties from whom the bills were received. Periodic total of the Bills Receivable Journal is posted to the debit of Bills Receivable Account by writing 'To Sundries-as per B/R Journal'.

Recording in Bills Payable Journal and its Posting: As and when the firm accepts the bills, they are entered in the Bills Payable Journal as per columns given in Figure 10.9. Note that entries for the payment of these bills are made in the Cash Book, and those for dishonor in the Journal Proper. All entries made in the Bills Payable Journal are posted to the debit side of the individual accounts of the parties at whose request the acceptances have been given. Periodical total of the Bills Payable Journal is posted to the credit side of the Bills Payable Account by writing 'By Sundries-as per B/P Journal'.