Bills receivable is same like the debtor the only and the minor difference between is while selling the goods on the credit we open the debtor account and when the debtor give bills in regards of the payment of the credit goods purchased we open the bills receivable accounts and if the bill is not matured on the due-date or dishonoured we again transfer the bills receivable in the debtors account.
Sundry debtor is a collective account of differen debtors....in ledger we open sundry debtor account and in subsidiary ledger we open each debtor account separately....when any debtor out of the sundry debtors give bill for making payment then we close that debtor account into bill receivable account....
Bill receivables can be endorsed but sundry debtors cannot be endorsed.
Bill receivables is nothing but receivables against sale of goods / services and the difference is debtors and receivables. When we sell any goods / services on credit basis we open those customers in debtors account. When the debtor give bills in regards of the payment of the credit goods purchased we open the bills receivable accounts and if the bill is not matured on the due-date or dishonoured we again transfer the bills receivable in the debtors account.
Debtors is said to be when we buy goods on credit, bills receivable means for any credit transaction the debtor should receive bill from the creditors.
Sundry debtors are the customers who buy goods on credit. Bill receivables are documents drawn by the debtors(maker) to pay certain amount of money (face value plus interest)on a predetermined future date (maturity date) agreed by the creditor(drawer)
There is little or no difference in Debtors and bills receivable. When we sell goods on credit we add those people in debtors accounts, when we receive bills from those debtors we we open bills receivable account. Later, on maturity date if the bill gets dishonoured, we again transfer bills receivable a/c in debtors a/c.
What is the different between Sundry Debtors and Bills Receivables?