Question

On February 1, 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's account in the books of John.

Answer 1

In the Books of Jimmi
Journal Entries

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{2011}& & & & & \\ \text{Feb 1}& \text{John's A/c}& \text{Dr.}& & \text{15,000}& \\ & \text{To Sales A/c}& & & & \text{15,000}\\ & \text{(Goods sold to John)}& & & & \\ & \underset{–}{}& & & & \\ \text{Feb 1}& \text{Bank A/c}& \text{Dr.}& & \text{5,000}& \\ & \text{Bills Receivable A/c}& \text{Dr.}& & \text{10,000}& \\ & \text{To John's A/c}& & & & \text{15,000}\\ & \text{(Acceptance received on Rs 10,000 and}& & & & \\ & \text{Rs. 5,000 cash received)}& & & & \\ & \underset{–}{}& & & & \\ \text{Mar 10}& \text{Bill Sent for Collection A/c}& \text{Dr.}& & \text{10,000}& \\ & \text{To Bills Receivable A/c}& & & & \text{10,000}\\ & \text{(Bill sent for collection)}& & & & \\ & \underset{–}{}& & & & \\ \text{Mar 15}& \text{Bank A/c}& \text{Dr.}& & \text{10,000}& \\ & \text{To Bill Sent for Collection A/c}& & & & \text{10,000}\\ & \text{(Bill sent for collection, collected by the bank)}& & & & \end{array}$

$\begin{array}{cccccccc}\text{Dr.}& & & & \text{John's Account}& & & \text{Cr}\end{array}$

$\begin{array}{ccccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \\ 2011& & & & \text{2011}& & & & \\ \text{Feb 1}& \text{Sales A/c}& & \text{15,000}& \text{Feb 1}& \text{Bank A/c}& & \text{5,000}& \\ & & & & \text{Feb 1}& \text{Bills}& & \text{10,000}& \\ & & & & & \text{Receivable A/c}& & & \\ & & & \underset{–}{\overline{15,000}}& & & & \underset{–}{\overline{15,000}}& \end{array}$

In the Books of John
Journal Entries

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{2011}& & & & & \\ \text{Feb 1}& \text{Purchases}& \text{Dr.}& & \text{15,000}& \\ & \text{To Jimmi's A/c}& & & & \text{15,000}\\ & \text{(Goods purchased from Jimmi)}& & & & \\ & \underset{–}{}& & & & \\ \text{Feb 1}& \text{Jimmi's A/c}& \text{Dr.}& & \text{15,000}& \\ & \text{To Bank A/c}& & & & \text{5,000}\\ & \text{To Bills Payable A/c}& & & & \text{10,000}\\ & \text{(Acceptance given for Rs 10,000 and}& & & & \\ & \text{payment of Rs 5,000 made)}& & & & \\ & \underset{–}{}& & & & \\ \text{Mar 15}& \text{Bills Payable A/c}& \text{Dr.}& & \text{10,000}& \\ & \text{To Bank A/c}& & & & \text{10,000}\\ & \text{(Bills paid on maturity)}& & & & \end{array}$

$\begin{array}{cccccccc}\text{Dr.}& & & & \text{Jimmi's Account}& & & \text{Cr.}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ 2011& & & & \text{2011}& & & \\ \text{Feb 1}& \text{Bank A/c}& & \text{5,000}& \text{Feb 1}& \text{Purchases A/c}& & \text{15,000}\\ \text{Feb 1}& \text{Bills Payable A/c}& & \text{10,000}& & & & \\ & & & & & & & \\ & & & \underset{–}{\overline{15,000}}& & & & \underset{–}{\overline{15,000}}\end{array}$