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Adjust Bills Receivable/Payable : A bill of exchange can be either bills receivable or bills payable. When a drawee accepts a bill and sends it back to the drawer, it becomes a bills receivable to the drawer as money is receivable on the bill. Therefore, it becomes an asset to him. On the other hand, it becomes a bills payable to the drawee if money is payable by him on the bill, in which case it is a liability for him.
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