India Bills of Exchange

[Vinodh]

HI, I was going through this chapter today and worked out some basic problems. I am not able to understand the journal entry that is passed (...i.e., from the perspective of the golden rules of accounting) when one party draws a bill on the other. The entry that appears in these books is to debit Bills Receivable and credit the party that accepts the bill. I understand that something is due to you in the form of money and that's why you debit the Bills Receivable account and the corresponding credit to the party's account. But from ledger or "T" column perspective, when you post the entry, i am actually seeing the party's account credited. This is something that i fail to understand as you would normally charge a person's account by debiting it and not by crediting it. Assuming that there are no more transactions to the party's account during the remainder of the year, his account is bound to show a credit balance in the books in which the entry is recorded and not as a receivable from him as supposed to the B/R a/c which would have a debit balance and will be recorded as an asset. I tried comparing this with credit sales which makes more sense but not the entries in BOE. Please can someone be kind enough to explain the logic in passing the debit and credit in the above entry?