What Does "Bill Receivable" Mean?

Bills receivable is terminology that is used between a debtor and creditor. This is accounting terminology that is used in countries such as India. An example of Bill Receivable has been illustrated for your benefit:

Mr. X owes Mr. Y $100. He owes this money because M.r Y has sold furniture to Mr.X but X has not yet paid Y. He has promised to pay Y after 6 months. Y will then issue a note to X called a Bill of Exchange. This bill will state that X owes Y a specific some of money because he has received furniture from Y. It will also specify the date on which the payment will be made by X. This bill of exchange will be printed on Government approved stamp paper only.

In the double entry system of accounting, this bill will be called Bills Receivable in Y's books and Bills Payable in X's books.