Question

On Feb 01, 2011, John purchased goods for Rs 15,000 from Jimmi. He immediately made a payment of Rs 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 account in the books of John.

Answer 1

Books of Jimmi
Journal
Date		Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
2011
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 Rs 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)

Ledger John's Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
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 Rs	Credit Amount Rs
2011
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)

Ledger Jimmi's Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Feb.01	Bank		5,000	Feb.01	Purchases		15,000
Feb.01	Bills Payable		10,000
			15,000				15,000