what is bills receivable?

BILLS RECEIVABLE, in merchant accounts, are all promissory notes, bills of exchange, bonds, and other evidences or securities which a merchant or trader holds, and which are payable to him.

BIILS RECEIVABLE IS AN CURRENT ASSET TO THE BUSINESS, WHEN V SELL TO ANY CUSTOMER IF HE CANT PAY THE AMT V GIVE HIM A DOCUMENT ASKING HIM TO PAYING WITHIN A SPECIIFIED  TIME.

EXAMPLE : MR.X SOLD GOODS TO MR.Y FOR RS.10000/- AND MR.Y IS NOT IN A POSITION TO PAY THE AMOUNT SO MR.X GIVE A DOUMENT TO MR.Y TO SIGN AND GIVE IT BACK TO HIM. HE WILL KEEP AS A ASSET TILL THE DUE DATE. 

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