BR, BP, AR, AP

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Quick Summary

Bills Receivable are amounts due through accepted bills or promissory notes, while Bills Payable are obligations to pay such bills. Accounts Receivable is money owed by customers for credit sales, and Accounts Payable is money owed to suppliers. BR/BP are specific instruments; AR/AP are broader ledger balances.

Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2010 What is Bills Recievable , Bills Payable & what is Accounts recievable & Accounts payable ?? Is there any ifference?

Ajay Mishra

Ajay Mishra (Expert)
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26 October 2010 Hi

Bill receivable -- A written evidence of debt that is payable to the holder; a promissory note or an acceptance (a bill of exchange that has been accepted) is in the hands of a person to whom it is payable a bill receivable. A bill receivable that is included under the head commercial paper is a promissory note that has been received for goods sold and that has in order to effect its discount (sale) been indorsed by the party who received it.
Bills Payable
BILLS PAYABLE, in merchant accounts, are all bills which have been accepted, and promissory notes which have been made, are called "bills payable," and are entered in a ledger account under that name, and recorded in a book bearing the same title.
A/R (Accounts Receivable) and A/P (Accounts Payable) are used by businesses to record sales for which they are not immediately paid, or to record bills that they have received, but might not pay until later. These types of accounts are used primarily when you've got a lot of bills and receipts flowing in and out, and don't want to lose track of them just because you don't pay/get paid right away.
For most home users, A/R and A/P will add so much complexity that they are not worth the effort.

Source: https://www.gnucash.org/docs/v1.6/de_DE/t1120.html

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