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Accountancy · Ch 8 — Accounting for Bills of Exchange

Accounting Treatment

8.7

Accounting Treatment

For the person who draws the bill and gets it back after its acceptance, the bill is a bill receivable; for the person who accepts it, the same bill is a bill payable. In the case

of a promissory note, for the maker it is a bill payable, and for the person in whose favour

it is drawn it is a bill receivable. …