Bills Receivable

Definition

A negotiable instrument (Bill of Exchange or Promissory Note) received by the creditor from the debtor as an acknowledgement of debt, promising payment on a specified future date. It is an asset in the Balance Sheet.

Example

"A sold goods worth ₹10,000 to B on credit and received a Bill Receivable for ₹10,000 due after 3 months. A holds this as an asset."

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