Q.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 account in the books of John.

Purchase ₹15,000: ₹5,000 paid by cheque, ₹10,000 by a bill for 40 days. Maturity = Feb 01 + 40 days + 3 days grace. In the leap year 2016, February has 29 days: 40 days after Feb 01 reaches Mar 12 (28 days in Feb + 12 days in Mar), plus 3 days of grace = 15 Mar 2016. Jimmi sends the bill for collection 5 days before maturity, i.e. 10 Mar 2016. No discount or interest arises. John's personal account (in Jimmi's books) and Jimmi's personal account (in John's books) each net to ₹10,000, the bill portion only, because the ₹5,000 cheque is settled directly through Bank.