Explain the journal entries of bills receivable , payable , bills sent for collection ? Also explain with the 3 golden rules rules of accounting

Rules as per Traditional Classification of Accounts
 

For Real Accounts (Assets- Tangibles and Intangibles): Debit what comes in and Credit what goes Out.

For Personal Accounts (Debtors, Creditors): Debit the Receiver and Credit the Giver.

For Nominal Accounts (Expenses and Incomes): Debit all expenses and losses, Credit all incomes and gains.

Hope this clarifies your doubt!

  • 9

 1. Bills receivable a/c dr to debtor a/c 2. creditor a/cdr to bills payable a/c 3. bills sent for collection a/c dr to bills receivable a/c

Golden rules are:- 1. All expenses and losses are debited and all income and gains are credited 2. Debit what comes in,credit what goes out 3. debit the receiver and credit the giver

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IN THE A/C OF DRAWER 

1 )B/R  dr 

  TO DRAWEE  

2) BILL SEND 4 COLL   dr

    TO B/R 

IN THE BOOKS OF DRAWEE 

1) DRAWEE   dr

    TO B/P 

2) NO ENTRY 4 BILL SEND 4 COLL IN THE BOOKS OF DRAWEE 

FOR MORE U CAN REFER page no 15.44 of ts grewal 

  • 5

 I know all this , I want the explanation 

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u got it or not ?

  • -1

 Yes I can understand what u said , thanks, but I need an explanation using the golden rules 

  • -3

which book u used to refer for accountancy ?

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 Dk goel

  • -2

 Does Ts grewal has the explanation I m asking for ?

.

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 u can check 

  • 1

yes 

  • 0

 Ok thanks 

  • 6

 Alright :)

  • 1

u r wlcome 

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