Question

On Feb 01, 2016, John purchased goods for ₹ 15,000 from Jimmi. He immediately made a payment of ₹ 5,000 by cheque and for the balance accepted the bill of exchange drawn upon him by Jimmi. The bill of exchange was payable after 40 days. Five days before the maturity of the bill, Jimmi sent the same to his bank for collection. The bank duly presented the bill to John on the due date who met the bill. The bank informed the same to Jimmi. Prepare John’s account in the books of Jimmi and Jimmi’s account in the books of John.

Answer 1

Books of Jimmi Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2016
Feb.01	John Dr.		15,000
	To Sales A/c			15,000
	(Goods sold to John)
Feb.01	Bank A/c Dr.		5,000
	To John			5,000
	(Cheque received for ₹ 5,000 from John)
Feb.01	Bills Receivable A/c Dr.		10,000
	To John			10,000
	(Bill received from John for 40 days)
Mar.10	Bill Sent for Collection A/c Dr.		10,000
	To Bills Receivable A/c			10,000
	(John's acceptance sent to bank for collection)
Mar.15	Bank A/c Dr.		10,000
	To Bill Sent for Collection A/c			10,000
	(John's acceptance met on due date and bank received the payment)

 

Dr.	Ledger  John's Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2016				2016
Feb.01	Sales		15,000	Feb.01	Bank		5,000
				Feb.01	Bills Receivable		10,000
			15,000				15,000

 

Books of John Journal
Date	Particulars	L.F.	Debit Amount ₹	Credit Amount ₹
2016
Feb.01	Purchases A/c Dr.		15,000
	To Jimmi			15,000
	(Goods purchased from Jimmi)
Feb.01	Jimmi Dr.		5,000
	To Bank A/c			5,000
	(Cheque paid to Jimmi)
Feb.01	Jimmi Dr.		10,000
	To Bills Payable A/c			10,000
	(Bill drawn by Jimmi accepted for 40 days)
Mar.15	Bills Payable A/c Dr.		10,000
	To Bank A/c			10,000
	(Payment of bill made on maturity to bank)

 

Dr.	Ledger Jimmi's Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2016				2016
Feb.01	Bank		5,000	Feb.01	Purchases		15,000
Feb.01	Bills Payable		10,000
			15,000				15,000