STEPS INVOLVED IN THE SALES RETURN BOOK - Accounts and Finance for Managers

  • Sales return of the enterprise from the individual buyers are recorded immediately after the transactions
  • The monthly total of the sales return is posted into the debit side of the sales return account in accordance with the rule of Real account

Trade Bills Book

The trade bills book can be classified into two categories viz Bills receivable book and Bills payable book.

Bills Receivable Book

It is a book maintained especially for promissory notes & Bill of exchanges accepted by the customers out of their dues, as an out come of credit sale of the enterprise. The bills receivable and promissory notes are nothing but the resultant of the credit sale transactions of the enterprise not only to safe guard the interest of enterprise but also to collect the dues from the customers as per the terms of the trade agreed earlier.

Bills Receivable Book

The various components of the Bills payable book are as follows

From whom Received- The either bill or promissory received from whom? .The name of the party should entered at the moment of receiving the negotiable instruments of the trade.

Acceptor - The person / institution who/which accepts the terms of the bill to make the payment
Date of the bill -At when the bill is drafted/ drawn for obtaining the acceptance of the buyer ;who bought the goods on credit
Term -Modalities involved in the process of payment of the dues mentioned in the bill
Date of Maturity - Date at when the bill to be presented for collection from the customer.
Where payable -The place of amount payable by the customers or buyers who bought the goods on credit.
Amount (Rs) -It reveals the amount How much to be collected from the customer through either bill of receivable or promissory note .
How disposed -The process of the collection done should be recorded for future verification in settling the dues of the customer.. Bills Payable Book: It is a book of bills payable or promissory notes accepted by the enterprise to the suppliers at the moment of carrying out the credit purchase.

Bills payable book

The following are the some of the important components normally included in the book:

Name of the drawer - Name of the person or concern , who or which draws the bill nothing but either seller or manufacturer or supplier of the goods or raw materials.
Payee - To whom the payment has to be paid
Date of the bill - Normally included to know the date at when the bill was drafted which is under the possession of the seller or supplier.
Date of Maturity - It is the date at when the payment has to be made as per the terms of trade.
Where payable - At where the amount of the bills to paid

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