Answer / mohit pathak

Both B/R and B/P are personal A/cs… To be more apt, they are Representative Personal A/c



Why??

Both these accounts represent Debtors or creditors of a particular entity.

The rule followed to pass entry in such cases is:

Dr. the receiver of the benefit

Cr. The giver of the benefit.

In the above rule ,the inner meaning of rule. Suppose when B/R is issued, it’s Dr. because that B/R represents Debtor from whom money is receivable... In a way our entity has given those debtors a benefit i.e. credit so as per rule we Dr. B/R a/c( at the time of issue).



Similarly B/P which is issued against creditors and it represent the liability towards creditors... It’s credited because Creditors have given us the benefit i.e. credit. So we Cr. B/P A/c(at the time of issue)



To be more clear and to the point, Both B/R and B/P cannot be Real A/c… Real a/c applies to assets of an entity.. These B/R and B/P are not assets because they are not yet acquired as like Plant, building etc. They are yet to be encashed. Asset means which has been acquired and has some value.



Hence, Bills Receivable and Bills Payable are Representative Personal A/cs.



Hope you have understood. If not, ask again without hesitation.

Answer / mohit pathak

bills receivable a/c is a personal in nature because it is represent person means debtor

Answer / abhinav

Debtors is a
personal A/c
that is for
sure.
B/R and B/P
should be of
same type.If
we classify B/
R as real then
what about B/
P it can't be a
real A/c becoz
its not an
asset.
So I believe it
should be a
personal A/c.

But my book
says B/R is a
real ac..
I am still
confused!

Answer / anas

I think bills receivables are real account. As biils are negotiable instruments and treated as current asset bothe bills receivables and payables are real accounts. But if it is accounts recevables or payables it can be representative personal accounts. 

Answer / honey

Bills receivable and bills payable A/c's are personal accounts because these are representative personal accounts

Answer / aman kumar singh

Bill receivable must be real a/c because it an asset I.e current a/c because all assest are real a/c whether tangible aur intangible .it can't personal a/c I.e represent it be personal s/c because from amount to be received from debtor his liability is over after issuing bills

Answer / rima pramanick

Debtor is also treated as asset then why we treat it as personal accounts and bills receivable as real although the majority of both of this meaning is same!!!!???

Answer / rajendra

B/R a/c is a personal a/c or a real a/c ?

Answer / fakhruddin a.m.

this is a real a/c called debtors

Answer / ajay kumar srivastava

B/R is personal account until it is
encashed because it has no real value
until encashed.B/P is also a personal
acccount until it is paid because all the
liabilities are personal account.

how to do the recurring entries or steps to follow that

0 Answers   IBM,

what is dividend? how do the use an accountancy?

0 Answers   South Indian Bank,

Revenue from sale of products is generally realized in the period in which 1.Cash is collected 2.When sale is made

3 Answers  

hi to all i have also cleared sbi exam and my interview is on 26th may 2009.can any one help to prepare for interview

0 Answers  

Does Operating Cost include Taxes - Direct or Indirect?

2 Answers  

3.In TALLY,we used to call tally erp 9.like that,in sap we used to call SAP ECC 6.0.here what is ECC?,i know the abbreviation of ECC.i want to know the role of ECC?

0 Answers   Genpact,

expand S L M

2 Answers  

fiscal year variant Vs posting period variant

0 Answers  

what is public ltd company and difference between public ltd company and public sector undertaking?

6 Answers   Capital IQ, College School Exams Tests,

What was the most chlleging task you face while working in SAP FI/MM and how did you solve?

0 Answers  

Expand--------SRTA

0 Answers  

what is demeterilization

3 Answers   Broadridge,