Tag: index of ledger, forms of ledger and process of posting

When a bill is retired, the drawer allows a rebate or discount to the drawee for early payment. This discount is an expense or loss for the drawer, not a gain.

When a payee receives a promissory note, it is treated as a bill receivable and recorded in the Bills Receivable Book.

A bill given to a creditor is a liability for the business, known as a Bill Payable. A Bill Receivable is a bill received from a debtor.