Q.Explain briefly the purpose and advantages of maintaining a Bills Receivable Book.

The Bills Receivable Book records all bills received in one place, saving journal entries and easing ledger posting. …

The Bills Receivable Book is a subsidiary book in which a business records the full details of every bill of exchange and promissory note it receives — the acceptor, date of the bill, term, due date and amount.

Purpose and advantages:

• It avoids a separate journal entry for each bill received, saving time when the number of bills is large.
• It keeps all bills-receivable information together in one place, so the business always knows what bills it holds and when they fall due. …