"Dear Sir, What is Difference Between Bill's Receivables and Sundry Debtors?"
Krishna Chaitanya from India
|Basis of |
| Sundry |
| Bill Receivables |
|1. Definition || Debtor is the customer of our |
business. He bought goods from us on credit and we have to get money from him.
|Bill receivables are those bills whose amount will be received on due date from debtor or the person whose name in it as drawee. |
|2. Bad Debts or Dishonor || If debtor does not pay our |
money. It means receivable money will be converted into bad debts. It will be loss of our business. At that time, we pass following journal entry.
Bad Debts Account Dr.
Respective Debtor Account Cr.
|If we do not get the money of bill from debtor, it |
will be the dishonor of bill and our debtor will be responsible for paying that money. We will pass following entry
Debtor or Drawee a/c Dr.
B/R a/c Cr.
|3. Discount || When we give discount to our |
debtor for getting money fastly, it will be our loss and discount
allowed account is opened.
|When we discount a bill from bank at discount, this discount will be different from discount account. Still this is also our loss. At that time, we can open discount on Collection Bills.|
|4. Net Receivable Amount ||When we get bill receivable from any debtor. At this time, debtor's direct liability will decrease. Sometime, our debtor has to take money from third party and he mentions that third party name. At that time, third party will be responsible for giving us money.||Total amount of bill will be receivable. There |
will not any deduction out this amount.
|5. Procedure of Accounting||For recording sundry debtors in the books, we pass journal entry of credit sales.||For recording bill receivables, we maintain |
bill receivable books.