Commercial acceptance bill is a type of commercial bill. It generally refers to a bill drawn by the payee and accepted by the payee, or drawn and accepted by the payee. Many companies will use commercial acceptance bills for transactions, so how to handle commercial acceptance bills?
Processing of commercial acceptance bills
A commercial promissory note issued according to the agreement between the two parties can be issued by the paying unit or the payee. It is issued by the drawer and entrusts the payee to pay a certain amount to the payee or holder unconditionally on a specified date, and is accepted by a payee other than the bank, that is, a commercial promissory note. The drawer of a commercial bill is at a bank. The legal person or other organization that opens the deposit account has a real entrusted payment relationship with the payer and has a reliable source of funds to pay the bill amount. A commercial acceptance bill can be drawn by the payee and accepted by the drawee, or it can be drawn by the drawee and accepted.
Risks of commercial acceptance bills
Since commercial acceptance bills can be endorsed and transferred, the risks are relatively high for the following reasons:
1. Based on commercial credit : Commercial acceptance bills are based on the commercial credit of the enterprise, and currently China does not have a unified enterprise credit evaluation system, which means that the possibility of default is greater.
2. Lack of promised delivery. Bank deposits are safe because the bank promises to pay the principal and interest. Commercial acceptance bills, on the other hand, are not regulated, so they are prone to difficulties in encashment and discounting. If you choose a commercial acceptance bill, you can check and trace its origin, avoiding the risks of paper bills and making it easier to confirm the authenticity of the bill. On this basis, whether to invest in the bill depends more on the ability and behavior of the acceptor to accept the bill. This includes a review of the acceptor's creditworthiness, confirmation of the authenticity of the transaction, and review of the endorsement, signature and transfer process. Since commercial acceptance bills are risky, it is recommended that when investors choose commercial acceptance bills, they must clearly recognize the company's credit rating in banks or financial institutions and check whether the company's operating information is true. The most important point is to judge the commercial acceptance bill Do you have a real trading background? Therefore, real commercial acceptance bills accepted by powerful enterprises are worthy of investors' investment. In addition, it should be noted that the payment term of a commercial acceptance bill should not exceed 6 months at most, that is, 6 months, and the time must be grasped by both the acceptor and the payee.
Accounting entries for issuing commercial acceptance bills
Debit: raw materials
Taxes payable - value-added tax payable (input tax)
Credit: Notes payable - commercial acceptance bill
Accounting entries for commercial acceptance bill due payment
Debit: Notes payable
Credit: Bank Deposits
Accounting entries for commercial acceptance bills that cannot be paid when due
Debit: Notes payable
Credit: Accounts payable
What Is it a note receivable?
A note receivable is a written document issued by the payee or payee, accepted by the payee and paid unconditionally when due. Notes receivable are divided into commercial bills and bank acceptance bills according to their acceptors, and according to whether they are interest-bearing, they are divided into interest-bearing commercial bills and non-interest-bearing commercial bills. Commercial bills can be endorsed and transferred in accordance with the law, or they can be discounted by applying to the bank. Notes receivable are assets and are generally accounted for in a special
Notes receivable
account. A note receivable is a written document issued by the payee or payee that is accepted by the payee and is unconditionally payable when due.