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Laa diagrammea suivants illuatrent le mathode. 1 2 3 1 2 3 4 5 6 WCaoCOfY RCSOiUTION TUT CHART lANSI onu ISO TEST CHART No Jj 1.0 I.I m m m APPLIED IIVHBE Inc Bo»A keeps n?y J^HJtiit ■ Stock Companies .a / " ' ■'A . .. <>^ •^'V--^/^.'^" ^!^ HOOKKHHPINC; Joint Stock Companies . / T,\t-H„„k- Jot the I sr of . la„mif„ii/> '•looH-trfirrs. /-Iiisiiirss .\/,ii. »,/ DAVID HOSKINS, C.A. "ci-l nsiihul „l llir /mliiiilr ,:l CluiHcnJ ■ Urmnliints „f On/iinu ro/foxro ; VV.M<\V11K HRO.S & RUTTKR ICJOI it hfa> II I I'liiia !•. A,l ,,f ||„. |',,||,„„„. "f A-ri™li,i,,. '"'•■"" ■ ^ n.,.;,,:,::,:;;::;;:', :,:;:•,,;;:;;:,:;:;:,■'■' iKvirqit PREFACE. r p.■|^l, tlK- ,u-ip;.l llio \inU-h An pri'par^ition ol iiliori- of till- Insiituli' of (.'liiiru-ivti Ao rr\iiiif i>ri tiK' C'ollt'j^L' .■|;i'.>-rooiii, ]w li.is inn.slaiillv Icll thv iiocil ol' a w :irnmj,'-ed lext-hiiok dealinj,^ thorou^flilv and practiialh with Ilie Jistii li\o aci.'ouiit-. of joiiil Sloi-k t\>inpaiiies. HeiKe ihe picscnl wiluii |-\.r prosp^Mni; .aiulidalov at llio .iforcsaid cxanirMalioiis, aiul t iii>tiliilioiis in • liii.-li t!io sliiilv specialty, il is l>clie\L'i.l iliat this book wil cll-aUapU-J. II-. \aliK' lo the K'okkooper or . . iii.nt L'll h\ Ihc app^-niUti )-.-tli.r trom Mr. Willo t'ouiui to Ix- peculiarly *inpiiii\ SL'tTctary is KdJis, K.C\.\.. thy nowii I oronto ; ntan! ,inil I'loidi lit ot the Ontario Institute ol Chartereil icc \aluahle Mij;^e>lii oMo. Ocloher 15II], nun. DWin liOSKINS. LETTER FROM MR. WILTON C EDDIS. F.CJ^., i'ni>iitK\i or rni- iNsiirt IK 01 i 11 ar ri;Ki:it \iior\TAM>. o,- omakio. O.WII) imsKINS, K-v, r.A,. Inm.Nn,, if.t. ,. |!NiI. /inV;,A Am.,:.:,. /{....,.... I ;.//, .j. . •/■,„■„„/„, IlKVk Mil. Ij.iSKIss: It i- wi.hu ^.'....t ,l...l M- ,m..nM that i Imv,. |.,.,us,.,l u.,,,- - lluukk.q,!,.;; inr .l.m.l St.Hk (■,.iM,«.ni,.«-aii.i i a.M ,.I...m..I u, ...... s,,,!, . v^liiuMr a.l.iitu.r, lu .\,.,...„„t,u,.^ Iitonitiirr. Tliis lM...k «illh..t ui.h l„. a tirst-iliMw irxt-l^.^.k f.^r Stii.l.ntf l.iit Mil! !«■ .■xtr.-mely u,..f.,l f,,,- lt,..,kk...,„-r> .„.! S.TiH.i.i.- nf CnnnHiNi.-. „s the lu,„kk.-i,j„j; ,.„.! f..nils liln.-liati'rl tl.rmi. -iir llmn.uwlih |.i,.rt i.ol .M.'i w..rk.-.i .m U,W III.' Arn.iinl.iiil - .llUI,l,M,i,ll, Vn.M> v,.iy iri.ly. iV'-i Wil.TuN f, KIUHS. CONTENTS. CHAP "■:k I. Joint Stock Companies . I S'Ot K <.OMI'A\[Ks— siPiAkl.S AM TKK CArilAI. MiKK - l.lAHll. ADVAXTAllKS OK JOIVI STOl K OF fOMCAMHS r\I>KK TflK llVTAK ton ONTARIO tllAklKKH:h> I TilK OMAKIO tOMI'AMK 1'\»I:K IHK DOMlXlOV Al ItOMIMO.N AIT- I'liTlTION WITH KKlKIVKS-ClCNKKAI. AiT |.i:ks kor I.I. I ri-Hs i> »MAKi:noi.ni:K>^ nil-; ( iiAk- I* Ol' SHAKI-:HOI.n|..H> - H>Ml*AMKs l\\i>KI>OKAITOX I' roMiv\x[|.> Al 1 .■iniTiox .'« IF, lli:it> I'M KM t XDEK AlT [\l OKI-OKA HON Ol l OMPAXrtS IT I'l HMi xoriil UIXji IKKJ) HV OH DOMIXroX HIAMIIK DKI'OSIT PKOOI' KKui iKHIt in Jto.MIXlOX LM I MlKk IHI-; l>O\II\I0X At I. CIIAl-ncK ]|. Orjanization Forms I'niisi'fxri s_rKosi'i,i i,> is^n-;,, ,„ „|,| t'ANV, t.[M[lKr» I'Mosi'Kiir^ Issi 1-n ri l.AXn CKMKNT l.lMIMXV, MMUKD ll'll XO'IICK Ot .\l.l,or\[|;M' ,1F SHAKI> rKTiTios I OK rsiiiKi-oKAiioN v\m:u iM .\. KiH.KKS tOM- rpiK \Aim\.vi. I'oRi- AirON (on MfARKr, ink oi Ki-riiKi T - >MAklO lHMl*AMt;s Ml AH IIIAMT Vim Mi;i> 1,1 OMARIO |.KIIII,.X Vll|[)«|| VICKIIVIV,, SK.XAIIK,.., lO |.K n I l,.N MI-MOKAMMM „l A..RJ,I.Mi.M AM. SUVK "OOK- All IHA VI I VKKIIVIX,. Ml V V I I KKS I,. SIliMORAMn-M Oi lc;«„,.:„„.v , ^NL M O. K I.OOK - aiVRIHK issilil, INPKK OXIAKIO U.MPAMKs AVI - ,.|.: , | , lOX I OK IX,,.K10KAriOV 1 Xl.tK THE IXIMIXIOX A, T nJrNAKAMOX lO AlKnil'AXl I'liJTNOX I ,)K l.OMIXU.X . II AR TKK - HEPOMl KIAIiiri AlVOMI.AXViXU 10KH.^„^v, niTlilOX „„ ,„ ov OOVEKXMKX, A.AOIXI Al COMMAS v,Xl. VfA'C^n Klami - ■^I'Kir.MEX OI [{V-|,AW«;. cn.\i>Ti;R III. Joint Stock Company Books . oixr '1X1 sroiK HOOKKIKnSA; AMIXi: HOOKS HOOKS OI ■MOMI AXl. KXHiXniliKIC AXXIAI. SIllMARVOK AIL JOlXi MOiK HOOKS MK.MOKAM.l M OI A.IKI^UMKV "'""'' '"""< •> "A.10X AM, AI,lA.T,„.:v, „OOK | MKXl HOOK IVSTA1.MKX1 RHKllTllOOX STOCK IT'KTI HOOK IKAXSIKK HOOK lOKM OL TRAXs,,,; „,,„|sl TKAXMKKS TOI! SHARK I.ICOkr ,„vii„:m, „ook K|., OK DIKIA lORS Till, MlMTK HOOK. CONTENTS. "ii.Asu.. Mimr^ ^'Vo.v, ,.,Hn, \\[. " *'M(< IIAI.VV., ^(ii.i-:r IH.irUN >i:tMHT\i|.:vni r ■^' I oi\ |- I'M .V\. I Mil I- >Ki{|.:\n Kcs A( I >Ss V( >-..,x',"^ '-"^'■I'^K ^ ,. E., '"" "" '"'< ".>.- ■••,',1,',!;,?'""', '■"'"■'""'■'■ ^"" '^'^-'■".^.^ on,,.,,., „„.,„„" ' ;" '" --' -«.m>s- I-I.IHIMIV ,„ ,„„ "^^^ '" ^H1K,.;,|„,.,„.„, ■^f* VMciUM.n, (is iiM, ,^s| ;,^'"'"'^>'"'««onQ„„,ion, CHAPTER I . JOINT STCX3C COMPANIES. JO..VT STOCK an„..,V,KS-S,U„,,s AV„ S„.,„EHOU,ER» - r„r CHAKTKK .on ,» specfied, although ten per cent, is usually insisted upon, mu,t*'cairr '■\'^,"""--'"°"'P-"« working under the Ontario Ac. must call from the.r shareholders a. least ten per cent, of their sub- BOOKKEBPING FOR JOINT STOCK COMPANIES :i scribed capilal .yilhin one year from ihe Jatc of Incorporation ; lho,e sfckintr incorporation under the nominio.i Act tiuist pay in ten per cent of their subscribed capita] before a charter will be granted. Liability of ShatehoUeri.- Persons subscribing' for shares in ajoint Stock Company must pay the face value of the stock thev have agreed to lake whenever called upon to do so by the directors. Frequently shares are paid for in instalments, the official request fur same bein|. technically known as a Call. No shareholder can be forced to pay Calls amountint; to m e than loo per cent, of the face value of the stock he holds. This is one of the most important features of Joint Stock Com. panies as compared with partnerships. In a business carried on as a Joint Stock Company a member cannot lose more than the face value of the stock held bv him, whereas in .a partnership he is liable for all he may be worth in order to satisfy the claims of the creditors. The fact that a man has hut a small interest in a partnership does not lessen his liability to the creditors of the concern, whereas in a Joint Stock Com- pany h,s liability is limited to the par value of the stock he holds ^ notable exception to this rule is that of shareholders in banks, who miv be held liable to the extent of double the amount of the par value of the sh.ircs. A,f a new ;;'-•• "Her,, ,„ ,,„ Hi. .,„,,, : ;: ^^;;; - » >- «.<-.. c-o.pa,„ CII, have h.e„ f„„, ^^,, ^^' '^ 'j^ -.V Pe-o.. a.. Ion,- ., ,„.. ■"« 'i-.eased. h.„ a, a shareholder i, del M [ '" "" """""' "^ .he corporate existence of the cl™' ,;' '"'" "" '••''^■'•■' ■"'™ Heco.e,hepr„pert,orhish r,':d :;'.' " '^ ^"' "'» ^ "ould - .hey eho,e to dispose of , hem "" " "'"' '""'' »''^" '">"■• ''■' The failure of a firm runnina- -is „ i ■ . i, not reflect upon the linancld sim r r'- "' ""'' ^'"'"P»n.v does «■•- extent as i, .otdd , hTbu' "'^ "''""""' "''"""'""^ '" •^^■ the business conducted as a partnership. voJCthrd-ei:::::: .:fi::r ■• ""''^°'''" - ---■" "here he has one vote '"; ■'''■'"\="»P' »' "-eetins-s of sharehold, s, •'''■«™-spo„din/a , T[,^^^^"'''^■'''-■""'™'""«po>ve; " partnership those owning oi;;""-"" ■'""''' '" '"' "-•"--• '" P-ersand responsihiiitie^ I^j ^ r"""'"" "'■ '^^^ "- s have in.erestsareverv ntuch Greater tt^ '."'"—»- Partners whose vested be extremely undesirable ' '" "'""•' '"''■''' '"'» "'-•" '"""'' >" '~™ o, Con,p..„ „„,„ .,. 0„.„,oCon,p.„.„ Ac.. - ^^tI: :::rV"'' "--'"— ^--etters Patent. , ^1'"— .he a fonnal petition, duly exected. "uly executed "d!,^L:,e ''"""'"'""" "^ ^^t^-entent and Stock Hook ! BOOKKEEPING FOR JOINT STOCX COMPANIES. -i shall or may be substrihed for, must be ins)>rted in tin: Potitii'ii iinj in the Memorandum of Aureement and Stock Book us mjitcrtiil piirts thereof. Petition for Ontario Cb&rtcr. -The Petition, which may be put in at any time without (iazette Notice, must state : (ti) The name, residence and occupation of each apphcant in full, else it will he returned for completion (6) The proposed corporate namt; of the Company, which must be free from objection. (a The object of the Company briefly expressed in general terms, as, for example: "To manufacture and sell furniture." Incidental powers must be left to the Act. (*/) The place at, or from, which the undertaking of the Company is tc he carried on. (*•> The place in Ontario where the head-office of the Company is to be situated, and where its principal books of account and its corporation records are to be kept, and to which all communiiations and notices may be addressed. {/) The capital of the Company, divided into shares ; 1^) The names of the Provisional Directors of the Company, who must be, at least, three in number and who must be stock-holders, and (/n The amount of stock for which each applicant has subscribed in the Memorandum of Agreement and Stock Book. (/) The petition must further show : That no public or private interest will be prejudicially affeclcd hy the jjrant of incorporation, if such be the fact, and that at least ten per centum of the nominal capital of the Company has been subscribed ; './) SiRnatures should be witnessed and proved by persons who are -not petitioners, or directly interested in the formation of the Company ; '/■ Sijfnatures must be verified by statutory declaration, or by affi- davit ; (/) St^'natures by attorney must be made under a specific, not gen- eral, Power, duly executed ; JOINT STOCK COMPANIES --^•-";.:::;:';:;;:v:;::r --'—.. •'"" "' ''"■ pavmonl of iho Ice. •■■ ^'" ■■'"'<"' " '" >"■ ""■-■P.^U -!„« i, i. ^,.,,,j, ■'■ ''""'""""■'•''"'"'■'l-""hon,k,„„,,,„,u., ^■ l'"«t Ollice Orders, r,„i.,| v.,,... . p^.->^ ... ... „ru.r „f ,„. Pr„:;:;i:;;::r" """ "" ' ^^ of $40,000. ■ *''°"" '" '™^-'"™' P-' ".".of in ox.o.s> \\hori i( K over ti.w. „ i. ■ K. .,T" '"• """•' '■ '■" ■ "— ■ •' ' - '•"..,, ... ,.. When (he Charier is for a (■er-.,.rv ,- carried on for ^ain, or which sh.ll ", . *-'.".?»".> '..nich is not ,o be ;;;:.'.':;;:;:, :■ "■ "'"■ "■>■ .»-.«.«..,..„. BOOKKEBPING FOR JOINT STOCK COMPANIES. VII commimitaiions ilumld be iiddrcHscd to the Homirablo tin; I'l.-- vincitd Secrcliiry, Toronto, Oiitario. Incorporation of Gmipanlci under the Dominion Act. I he Oovor- iior ill Council may. by Lettor** Palciil iiiulcr thv (ireat Sc«I. tfriiiit a Charter lo any nunibi of persons, not Ichh than five, who p»,'tition thi-n.-- for, constituting' such persons, and others who th<;reitrter become shurt- hi'lders in the Company thereby L-reiitcd, a body Lorporate and politic tor any oi' the purposes or objects to which the l.c^islutive juilhority of -'.t t artiar.'ent of Canada extends, except the construction and working if railways or the business of banking; and the issue of paper money, or the business of insurance. PuWk Notice Required by Dominion Act.-Thc applicams for such Letters Patent must jjive at Unsl oi\e calendar month's previous notice in the Ctunu/ii (i>iai-/ff of their intenlion to apply for same. All communi- cations liavinp reference to the publication of the notice should he addressed to the Kinjj's Printer and Controller of Stationery, Ottawii. The notice must contain the followinB particulars : 1. The proposed corporate name of the Company, which must not be that of any other known company, incorporated or unincorporated, or any nam*- liable to be confounded therewith, or otherwise on public jjrounds objectionable. 2, The purposes within the purview of the .Act for which it- incor- poration is sought. V The place within the Hominion of Canada which is to be its chief place of business. 4. The proposed amount of its capita Loan Company, shall not be less than one hi. dollars. hich in case i^i a thousand ($1(xj,(kk»> 5. The number of shares into which the capital is intended In Ho divided and the amount of each share. 6. The Christian name in full, and the address or residence, and the calling and occupation ot each of the applicants, with special mention of not less than three, nor more than fifteen, of their nuntber, who are to ;«NT STOCK COMPANIB. h,. ,,,„„ "^WMPANHS. : -'-":St::::^. ::--"-.-„. "-•"-■^n:.:::r;;:::r' : - p.... „..,. "^^ ^'-n in ,„„ ,„„„ J,^^ 1 : ; 7'-- This l„f„.,„„,„„ , J,„^ ;: ""' --• "-.ppiion, „„v •,7;"' ""- '«"" i".pn,cM.,M.. ';-" ••'™'- of .,K.,u,.., „, \:'-^^" ';■ ■" '-■'. o„e.Ka,r o, ,Hc loan company, be at least BOOKKEEPING FOR KXNT STOCK COMPANIES. it tei) per ccni. thervol j if ihv Lompuny he a loHn Lompnny the iijfjfrc^fare pitiJ in iipiin the Hlik.'k mum be ut lejut tun pi-r *.vnt. theri-ol hpiJ mii»t nt>t hf ItfiH Ihan one hunilred lhmii.nnJ ilullar-.. Suth a(f»frettHte »ihiill be dvpuKiU'd to the treUit ot the Keceivcr- (iviiLTHl oC farmdu, and nhidl hi- standing' ut '«uih vredii in -.ome chwr- tiTi'd hank in Cidiitda. and the appliiantst nhall, *llh their petition, pro- duii- the doposil rcfcipt tor «tuch innount «to deposited. This receipt xhoiitd be iiccompHnied by u draft for the amotiitt ho deniisitcd payable to the credit of the Receiver-ttcnernl. At any time after Ihe -tijfninjf of the letters patent incorporalinjr the appiicanid as a L-umpany, the said a^ifreh'ate, so paid in to the credit of Ihe Kekeiver-ticneral, may be returned to and for thi hoIb use of the compati), or in case of fa i hi re to invorporale, to the applicant, who have paid in or _-ontriViuted to the same, under reffulatiou^, from tim' ro time made by the (iovernor in Council. These rc^fulations provide t .• when a charter haii been ^'ranted or refused the Receiver-iieneral shall, upon the request of. and through the Secretary of Slate, refund to the com- P'lny the amount deposited in connection with its application. In case the object of the company is one requirin),' that it should own real estate, any portion not exceedinj; one-half ol such a^f^rre^'ate may be taken u> paid in, if it be *<>««/)>/,■ invested in real estate suitable to such object, and such real tstate is, by a \ alid and sufficient rei^i-teied deed, dul\ held by two or more tiustees for the company, and the appli- cants shall establish the 'act, by oath, athrmation or declaration, that such real est;ile is of the lequired valut over and above all encumbrances thtrokXi. K' idence must be produced showinj^ the value of the real estaie which i' is proposed to transfer to the companv. Proof Required by Dominion Act. (*/). - An Affida\it or Statutory l>ccl;iratioii establishing,*- the sutficiency of the petition and the truth and Bulliciency of tiie facts therein stated, also that the proposed name of the company is not that of any other known incorporated or unincorporated company. )/'i An Affidavit or Statutory Declaration provinjf ihc publication in the " Canada Ga/etu- " of the notice required by Section A. K. Aiiiet, ViTO-1'nniileiit, Tmtmti), (uf MfMHr«. A. K. Am.-s ft C.i., ItiuikeiH ), Robert Kiln'inr. Toronti., ( Vice-1'r.-mdeiit Oina-lian lUiik .>f r..nuii.rf.|. Hon. W. Caul K|j-, (Frfsi.U.nt Inlciiiati..nni iractinn 0>., Hiittain, X.V. .liinifH L. Murii*)ri, Toronto, (I'rewiilfnt Ntagari Silver Co.) Hon. Cl.as. H. Diit-H. ((;onimi!wi.iner of Fatenti', Washinglon. D.C.) Wni. A. KogLTH, <;eiimil Maiiagi-r. Registrar of Slock and Tranifer Agent i Thu National Tni^! i>m]mny. Limited, T..r..i.to. Counul : Ml-shis. lllake, U«li ft ('a^sei«, Toronto. Bankcn : Tliu |ti tlie is.-i f l'r..f,.r.-n,-(- Share- nf \Vm. A. Hoi-.ts Liinil.-.l. ] l.c.Kto.ay:-.. Wm, A. Ro(,'tT». Liniiteil. lias ln-i-n fornn-il for the purpose of atiniiring and t-arr> ing ou the Ini-iness of inanufaclnrinH ^'".1 Helling silvt-r-jilated wiiie lioretoforp earrivd on \,\ ih.'Xiairai.iSihuiCmiiwny, of Xiat;,-.ra Fall-. \.V,, and \Vm, A. R.tyvrs of X.'w York City, and for lUi' cxii'nsinn of tlirsr l.ii-incHM'H. The Niagara Silver Company waH.st..,icd at Niagara Falls. N.Y., in ISf»;t, and lia!4 gro\ni -t.idily Hincc itn lomnii'n.cnit'nt. In 11M<0 a branch factory wa« fBtahliBlicd at N.-« Hrdfuni. Mass.. in order «o meel the inen-a«ing demand for the r,.m| C. BOOKKEEPING FOR JOINT STOCK COMPANIES. li riu' (.ilvciware l.iiHiiifNH of Win. A. Rokits wiih conirrwiKwi in IHfHt, and in l«!l.". Iio U'tjrtii to (leal in the liiglieBt yratlo silver-pUtt-.l wurc. This bmiiiih nf Iuh IniHim-wi Iium Krown tu such proportions that tlif Niagarji Silver Ciiiiipany, wh{« pnrii'Ui of till- tfouth milil !;v Wni, A. RngeiH, timut) it iitx.'eHsary for the laat thrL-eyeiint III fiirni«h liini with inoic than 7-1 per i^eiit, of their total oiilinit. Thecontinuwl growth of tlie '■ iiiesH niukea it iictcasary atill fiirthur to incrvafte maniifai.'tiiring faLiliticH, imil it i» propoBoil to add one or two -itliur lines to thow already nianiifaotHrvd und iiicnMNc tlir liiiildihgs and plant for thiH pnr|Kisf. Theso linen havf heri'tofon> U-en piirthiVHi'd liy Win. A. Kogei'8 from oiIiit niaiuifai-tiui'iN. Thi- contemplated arrangenicrit will wtiire to the new Conilxtny tliv maniifa(.'tnring pmtit from these extra linrs. It also I iiNnifs throughout the whole output the high standanl of ijuality uatablishvd liy the Niagara Silver Company. The relations of tlit two conierns dining the last three vcarw have l>eeu of a mowt intimate elmracter, to mnrh mo 'hat their anmlganiation is a natural development. Wm. A. Hogers agrees t,i heeonie (icneial Maiiagir nf llie ConiiMiny, whil.-. Iiaviiig l>eeu (ieneral Manager of the Niagara Silver t'omiMiny sini-e itN efininienifmerU, it li,ii ln-en thought by my feUow Direutors (hat I shonid )>e<'onie Prewideiit of Wni. A. Rogers, Limited. The giMxIw maniifaetureil hy the Niagara Silier t'otn|Mun ha v. a revogni/ ■ -tandaid of excellenie, and their sale has grown steadily ani rapidly fir.ni the ii.rnmeiicetnent of the lilisiiifs.'i. Of the.«li<>n,(MlOi.f Prefcivme Stoek, 9.' M) have ken issued for the purp.we <-f ai-.|Uiring the proiterty of the silverware dej i.-nt of the Niagara Silver Company, in- i hiding faetory premises, leases, (ixtures, plant and maehinery, together with goodwill. trade-marlsM and jNttents. and alwo the nianufaetnring assets of every deHi-ri]itioii ; al-u the stoekin trade, furniture. HxturLS. lease of premises. go.Hlwill, trademarks, trade uaineii and other asi^ets, lint not including iHNik dehts or hills or aeeonntH reieivalile of Win. A. Rogers, as of Mai-ch 1st, IWH. A sum approximating i*IOll.llU(l in any pi-o\i.Ie8 that after [layment .(■nt. in divi.lemls, on the I'referenee Capital and l.ef.pi Ihc Common St.M'k. the sum of .^l.'i.OiHMhall U' annuall; Mu thelMMiksof the Comjiany Ito animal transfers sliall i-ontinue nnt] iH-maiiilained.andif it is at any t and mainlaiue.l ntofanydividemlupnn Hferred to Kestrve aii- u 1* useRK, I'KfWIIIKNT. Mism,. A. K. A>iia4( ORGANIZATION FORMS. Account!. •r.m. i, Ft!.. -Jx, imii. lli'iiv SiiM, -\Vf Jiitvc i-\,iiniiiwl 111.' iMM.k" iiiid jL.ir.iiiitH <.f Win. A. Ki.^-f.rH, nf X,.m Y..,k, iin.l XiaB,.ra Sil,,,. (•„., „f Ni„^,„.„ K»ll.. X. v.. (,„■ „ p,.,., ,t ,|,„,,. v,a„ fr .Ia.™ai.v 1.1, im, i„ .)«,„„„., I.,. liNil. »„,1 l„.,c.|, reriifv il,„i „flrr .l.aiKiiiK ..g.U.xt 11... |.|..ilil. :ill „|K.|.,ili„3 ,,|,.,i«.,, ,.,,,, „,. ti,„| ,i|,. ,„|„|„,| |,,,,j,, 1,,^,,, |„,^.„ ^1, ,„||„„,, , HHH V Vfiii. 1S!H V..:.I. IIMH M.i,ll.l ,o;l •>H,I»-JH 67 71i,:l')-J.a( CI.AKK.'iOX ft CKOSS. I"ha|.li.||..l .\ iLiiliinlH. Genrral Manager's Letter. 12 Wnn;, Si., X... \..,k. Pvl.. illU,, IWil. Mr: A. K. Am :s * r. """■ ''"•" ■■ -■'■'"■ ''"»""-- ""»■ '■'"■■" >■,>■ "■>■ ««« Hi...,,,,.,,,.,,! in IK 1„„ i„ mi.-. 1 l..».ii ll„. , ilc- ..f hisl, gn.il,. ,il,,., |,j„„.,l „„,.,, „, „.,. „„„ ,i„„, I,.,,.,. ,|,,,.„|„, |„j,. .ulf ,il„i,„i . x,.l„,iv,.l,. |„ ,|„. ,,,,,. „( ,|„t ,|„„my „f g,.,|,. „i,|, ,|,e ,.,.,,,1, ,|.„t i,iy l.ii.irn-.s >,iis yrowii tu larjf.' im.jH.rii.ius, Anions iii.v n..j;iiLu.|:tHl.iTiii'|.. ntv ll.. f,.ll.miiij{ ; II II. M,.,,.v * (.„ , lll,.„„i„B,l„|, ll™„ ,1 A, Hv,,,.,, ft ,s.,„, X,.. ^•„,.k : Al.ralmn, ,\ St.,.„.>, K„.,l. L,.,,iei ft C. , .1, H. li»„l„,„l ft (■„„ U,.,„l,lM, : lilt,, V,,,,,,^ ft C„ .\l„r«l„.ll Ki,,l,l ft ('„., .\1„„,„„„„.,, \v„„l ,( r,,., ll,.„j„.„i„All*r„„ll,i,.„s-„; R. H, Whilf Si (■„„ .I„i,la„, .\|,i„l, ft |,„., H.,„^,i„„„ ft i,,„ |,„„„„ , I, „ |i|,.,,|,|,|„ J i^.,! .1. X. A,laiii ft (_■„., A,l«.„, .\I,.l,l,.ui„ ft Ai„k-i.„„ i;„„ liisl, ft f.njjlM,, Il„ir„l„; FU'tchfi H»i-,lw„ri. (■„„ Hunt,., ft H„„l r, IM,.,!! i Umid. ft Fi.lier, ll,.|iv,.|., C.,1. ; Mol,l,-y ft Ciii-w. A,l„„. ft l),K|,k,. I-,,., ti„,i„„,.,i, (I, : Fte,., i„„., „,,„. n„„i,„„„, j,,| . j( 1,1,.> H„„lwa,.e r„„ I,i,l,ll,. H„„lw,.„. 1„ ,, c, IV. V,,,,.,, ,» s„„., l.i, „„,.,., M„k. B„,.., (:i.i,l..| 111,,.., Fl,il,„l,,l|,lii„. |,„. Will, iiicreiiaeil fat.iliti,.. I , i„i|,l I,,,,, l„tsii„.-.., ,lm.i„j, the U.l III.,.,. y,.,ii.>. ,l,l,.,ll,.,.Ki.ly l„lli,. v„lui,„. 1 i„-t |,r„tit. ,,f Tl„. ii„.r™.«l l«..iliti,.« «l,i,.|, Jl,w,i,iii„f ,„,„ „ ki,,^. ,.„|,i,a| „ ill f,„.„i,|, „,||, '■ '" '■« ""'• ""I'l'- ll" (■"..,|....y wil ,w„ y,.„„ i„ i„,,„,... |„ B„„. ,,„. .,.' „,„„'. ll,iii, .Vlp,!|.,.,.|il, Tl,u iiiri.ca«. In ,i,.| ,,„,iit, ,1,„|,I,|, „, !„„, ,.,„.,,,.,|„„„| ..m, ,|,j. Til,, net iin.lif „f la,l year liniing 1h,.,i .?7B„l-,i,oil, tin. ii„.|,.a»,,,l l„,.,i,,. „ ||„„ |,,„vi,|,,| (,„■ .h.i.l.l r«„i,lly l„.ii,„ tl„. ,i,.l ..,i,.„ii,g. „f ,|„. ;-„i„|.„„ „|, t„ till,.,. t,i,„ ,. „i,„ , i„.,.,.«.iy 1,. ,,a, ,livi,l,;,i,l, „., til,. l'„.f,.,.,.,„.,. .|,„„.,. ^■..|,^, tl„l,l, W,\l. A, Hoi;KliS. BOOKKEEPING FOR JOINT STOCK COMPANIES. l'. Ap|>li>xtii>ti will Ih- iiiaile in f iIil' r.>iii|Hiny liHiiil iijmti ihi-'l'i>ri>ntn StiH'k KxclnMifjc. Kul>Hi'ri(>ti<>ii lHH)kN will l>i- <>iK-iit.'tli f Man li. tit HUmUU iiuiUl|init'c. •2.!HKI«Iiiiit>«of .simtciuli, at jmr yiilttl.iMHP, I'ayaliti', i'l jut irnt. on atl.itm. ,H, ■_'.'. (mt ■■•■nt. on May I.ltli. iiS \wr cent, on July ITitli, uti'l'i,"! [K'lii-nt, (in S.-|)linilHT llltli, wjtli |irivil<'gr of making iiayiiiftil of any of all inxtalTncnts on any ilati', Siih-iiii(ition f.jniin ma_\ lie Ii.kI on applit'iitiiiii. A. E. AMES & CO. IH Kinj! SI.. h:-is|, 'I'nionlo. Prospectus issued by The National Portland Cement Co., Limited* (This prospectus \v;is issued in the t'orrn of a booklet of fifty paifes, beautifully illustrated throughout and t^iviii^' in detail full information on every point of interest to prospective investors. VVe are unable to re- produce it in full but its leading features a ■ presented in the following summary.) THE NATIONAL PORTLAND CEMENT CO., UMITED. IiU'orpi.catfil l.y Lnt.-r- I'att-nt nmlfr IIil- Krc.it Sciil of tli.' I'lovlnc- of Ontario. Capital Stork ¥l,(MMVMNt, In IH, li. Directors : W. H. Cowhani, Manaf^ingDirei-'tur FeniiistiUr PortlniKU.'enifiii I'o., Jack!.on. Mi.li. (lilhert MiKeilmie. ix-M.P.F., M.'nlmnt, Diirlmni. Ont. I',\V. Sianliii|ii'. Untari'iMiinagur ML't'iirniii^k Hiirvcfiting MacliinpL'o., Toronto, Ont. A. F. Ma 'Luen. M.l'., Strutfonl. Ont., Prewiiltnt A. F. .MacUnm ImiK-rial Cliuexe Co.. l.irinti.l. Torojito. (Int. Harlow (■niTilK'rlan.l. Vi.'t-lVi-si.lcril Niagara ^'a^ig,ltion Co., Toi-onto, Ont. ORGANIZATION FORMS. Buktni 'I'l'f St lani ll^iiik -if laiiiMlii, r..r..iil... Auditor 1 •la<. I'. Li.,nl,.v. i:i,„i„,,l Arami.lani. T.,r,.„i„, Solicilon t iJl.ikf, Li^li A < 'ii^^.-l-. I'iiiknt,. II A (■.,.,!(. i<-inial(»lli,r« Wc.iks . ■r.m.iii 1. .I)iiiluiiii. Oni. 'ilii-i.l.jv,i»„f tl„. N„(i,ii.«l I'mtlan.! i (Vni,-iit Co.. l.iii.ii.fi. n^ f.viji.s^.,! I» x]„ Uller. l'«t,.„t.,„,. i„ „„„„il„,.l„.,.. I,,,,, .,11 „„.l „ll„,«i... ,|>„1 h, ]',„|l,,„.l V ,',1. t„ ..*!.. i.mvluw. ,„■ l,.,,„. „„,.! ,„. ,.,.„„.,„ ,,,„|,.,.,i„. „|,|, ,|„.i,, |„, ,,,^ „,,,, _,,,.|^ ,^^|^^.^, Iliinys as iiin.v I., , y^Miy i.r ,..iiiM.|ii|.ni i,i i|, lnHm,.... Tlir|m.|.,Tti,.5 ii,i,.|.,|,.,| i„ |„. i,(jii„| |,v ,|„. i',„|,|„|,j ,„„„;„ ,,f .,|„,„, ..j^i,, li-.iii.li».l luiv. ,„• i„,u] m\ , |»v kiii]> in i],e .Irii.ii, of Dnilmm, {)i,i.. ., g,.,,,,, ,j,.„l „( wtiiHi i«H.f,„. .„■ o,li,r»i«.. to tiK. fa.to,., ,.l,,„|,|y „ ,.„,, „ti.v. .,,,1 „a„„.,-,.„.. analv.m ''"'" ""■ ''"1"'"' "• '"■ "' "'"f '1 >■..!...■. laiiitv of ,|„alit.v, aial fall, ....aal if ,a,t Mi|>fioi-. 1.1 aaj kiao™ j,|-.,ia.il v it, tl,,. »,„ 1,1. ■'■'"■ """ -'"■ ■■' I""! ' " ■ ''"Ital l,.-,.t ,. f,.s.„|. tia. latuv-t ,„„,k.-t.. I,a. '""■'■'•' I'''V fa'ili'i™. a |™.,l a,lva„t,iB,.. for trutt.i.ala f tl„. |.,,«l„,.i t,, all |„ti. of tl,.. ,.„„„in |,a,,. al,,.a,|y I.,,, M..„r,..l l,,.,„ tl,,- ti„„.|.orl,,.io, ,|.„,i,.,. ''■'"■ 'I"""'.'- ""'I •!' <•<>■ "I «"-■ i rial.. i„ „,„ |„„|..|1, „f,at., I,,„,.l„...„ tl,on„,Kl,K ,Aaiai„,.,l a„.| i, .„,.,! ||„u„|,.,.,|, „| I,,,,,,);, „„,i .,,,,,1, .„ |, „ i,,^, |„,., ,„||.| |^^, ""'""'"' ""■'" 'laai.i.ts i,i tia. ,„ui,tr., . ,'»|«Tiallv lilt,,l l.a il„-,,,„.k: . ■...i,,,.,.,', '"'"■ ""•'""■•' ""■ '>'' I"l «»tca|..av,.,.. tl„. (■„„, ,,-. ,.,,..,., |„, ,,„,,„|,, ,Nan„„,.,l,.vorjll,i„sii, ,l,.ta,l, uialall ,.,.|.„t ,i t , ,|,.|,„it of m,,,, i,„. ,|„a|iiy „i„l |„.,l,.,tl.v a,la,,t„l a. f, l„,'ali.„, f„, tl,.. l.„.i,„..,., ,., |. ,,„,|„,„.,| .,„., ,.„f„||;. „,„, i,.„l,lal,]y. """ '"'"' '"'•'"'- 'l''»,ai„l ll„. i,'.,l„,|',..,- ,. ..t,-,„lil, »i, a it.uaj. f,„a\af,l i,, Caaa-laas i„otli,.f. ,l,„..,. tla,,. i. y.t si,],,,,!, I,- ,■,»„„ f,„ tl,,. ..^|,„„si,.|, i„ tl,,. i„,lii..trvat I „■.„„.!„. f,it„,,. i,, tl„. ,.,.,„,,, -,■..,„. ,,.,, |„ i.i,,.. i„,l,....I TI... i,a|..,t. .,1 |..,rtla,al IV„,c.„, i„ I,.,, „,,,... al.„„ 4ii„,ik„ |,„„.|. ,,„. '|.„„„,ij I'""'"-''"" •■""■ '""I-. -I <"<"' -■«»-»," ,-t TI«.,(,1K, l,„.,vl.. Tla.t.,t„l ,„i,s„i„|,ti,.„ ..f |'.„tla,i,l ,.,.,|„.|„ ii, |.,„|,„i„ i„ i,,,, ,.„,.,.,!„, ,|,,„ |„ I,,,,, ,,, ,,|^„,| l.".i,.,NH, l..ii,-..|s. I)„,i„t. tla-lati..,. , ..f tl„..,,.,i„ ,..|i,,.l.l......,i,..„t f,,„i,„. ,„..,ail..,|. BOOKKEEPING FOR ;OINT STOCK COMPANIES. IT in iciiimiu™™, Iho actual unirninl ,..,i,.uii,.,| »„ , ■„„i,|e,„l,|y 1,,, i|.«ii that ro.|iiirwl l.y thi- . "ilntry. Tho aam. c™i.liticiii >wtn> u, liavD i-xiMnl thr..ii«li„„i tlie «..rl.l, aiul i> .luc-l„ll»ni,iltitn.l»„f„.w,p|,li,-,ii„n. I'orll,,,,,! (■ „,, i, lon.tantly IIm.Ki.k a,i,l ll, raiii.llj ir>.TFa»ii>K "«• i" tl.o jilace of l.rirk si.,1 ,|,.„„ hi iQi,.lrii,li„i, ,.t ,11 fci,,,!,, Cbanlu'i Rcpoft. ■I»"l< Mil li. Manli anil, 1*11. Niitiiinal riirtlniiil Ctimciit <;>ratury, and I herewilh make my final i-cpou „,i ihc .amc 1. The marl was foiinii tf excellent purity, Wing very high in .arhonale .,f lime and l„w in magii.-.,i,i. ™lph„ric anhydride, anil containa no nand whatever. .'i. The nia-'! when mixed with the piiit iHinxiMii tnvrhKnirttl e<|iiipmeiit, ruMly nimiiM '■[ tritiiM|MirlKtii)ii, <'om|H'ti>iil niHiiaRi-nifiit, iilt-Al litcaliori. n ntupk iii liile and aii i-vt^r t^riiwing uimtip|tlkil iimrkci, >ht< Natiuiiitl I'ortlaixl ('eiiiunt CompHiiy ix '-nnimantliitiit the atlentioii iif llu; iliiiii^htfiil, I'ntiRi'rvtttivt' liiiHincHK mmi unil iiivt^xtor. Thtirr in ut-iUy no line >tf iiivextment tliui pniniiiieH ninn* <«i'taiii or nmrf iKTmaiKiiit rettirn nn uipitHi inveBtHl, nut iHie wht-n* (li»- ftlwtpiwt' of H|HN'iilutivi- fcHtnrvM i» nmrw niArki^d iWn in nMinfHiio.i with thv iiriNluition of I'nrtlatKlCt'mcnt. Tliu pf, havt- irif-iritl lli<' Comiuny vxeni|itinii fn>ni titxalinn |fxic|it hiIii>i>I taxK f»r a jterioil <>f ton yt'arM, uml have ^iih- Mcribi'dfor iipwai^lM of #llMt,OiM> of the tapiul xtixtk of the C'onipnny. »2^t,*ii»t .,i Om i'a|>itHl Mtink haa U-wii tAkon by the Din-ilnrH anJothprw inti-ii'iititl in thr <'(ini[Mny, ami roiiHiilemliU- other nniiiiiiitH have l>ecn NiitnurilMtil for throiiglinut the I'rovinic e jirojH-rly reprt'^vtitfl fur hiiHineMN |iiir|>oti«N in the tvrritory in *« liieh it is ilenin-fl to cstahlinh a iHTinam-nt iiiarki-t. AihlreHH all .omnniiiii-attoriN to THK NATIONAL I'ORTLAND (•KMKXT CO.. LIMITKK. RooniH 4 and ."> Jani-a Hnihling, Cor. King and Vunjie S|reil«, Toroiilo. FORM 2. Application for Sharei. Tho prospectus of a Joint Stock Conipiiny is usuiiUy iiL-Lompiinied by an application hlatik to be tilled out, siffned and returned by those desirint; to subscribe for shares. It frequently takes the form of a letter addressed to the Company in which the appli- cant asks tliat a certain number of shares be allotted to him, but more recently the practice has been to use a form in which the applicant sub- scribes for, and agrees to take, a certain number of shares, or such less number as the directors of the Company may see fit to allot. An example o( each is here jfiven (The original subscribers, of course, sign the sub- scription book as described hereinafter). «) 34 King St. VWmi TOKOSTO. Iter, . Ltd., Tornntt). 'I\>tlK-l)irf Inil.v, SAMIKI. MMITIt. WM. A. ROGERS, LIMITED. Iri.iiT Tl..- ( (iil.ii in ( ■,„„|„„,it.- A.t. Ct^Ut, 11.350,000, riivi.lnl i„i„ l.r.K.I ,|„„,.. „f *,m ca.l,. ,„ f .« ; l'rc.f..f,.ric.. Sl,i,.|, Onliniiry StiN'k ^H.'iMWI. *7.'rf».imo, Th.. ,„„ler.i„„„| J„.„,|,v ,„,„,H,,„ ,„ „ g„,, ,„ ,^,1.,. ,1, ,,|^^ ^^, ^1 _^ __ ^^ I n,r..r..„,.„ s„..|. „, w„, A. 1<„«.,,, I.l„,i,..l. „., „,„.u„ .,„„„„ ,., ,„, , ,. """"-' "'■"•• ""• """■'-■■ •■" •!■•• "■■"■' -I llir«...,-. „f ,l„. „,,: ,■„„„.„„ ,„„, ■ ""'1 '!•'• i""l""i«n"l „Kr,,.» ,., ,„> ll„-,„i,| ( „„,|.„„. ii, ■ll.K i.f tin- PniKlM-itllH. 111.- .ii|i,,ii„t iHiytll.lr on Mll.l, KllHri-S IIH illMV allot iiikIit th iu-inr.laiii;r ujili U.,. |, In. w.||otl,.,l. llRtwlal X fSl.aiT. Aiiioiinl * '!«> ofMai IWil. .Signaliir.. (infillll, A.l.ln™ FORM ,. Notice of Allotment of Shlra.- It is >..iitirel.v optiomil with th,; Directors of llie fompiiny to iillot or refuse the' shares applied for. guile ireHuemlj .-plieatioiis are received for a much lar(rer number of shares in the aBgretratethan the Company intends to issue; in such cases the directors allot the shares as thev may see lit. Notices of allotment are sent to the successful applicants in a form similar to the one ^iven below ; at the same time letters of regret are sent to those whose applica- tions have been refusotl. IV >1. IliaioK,, K»|. 'lolioVTo, Out.. O.I. I, liml. Ihar Sii - "''■ '"■« ' '"'"' ■""'• "■•'• '" '"'"»""■ ■■ "'.' ll"il .■t.toi, o( t|„. loroiUo Pa|».i. B.K O... Limited. Iiav.. ,.llotl...l to y„,i Uiirly .hares of .-aid is sought by Vour Petitioners is to (stale object in K'eneral terms ; incidental powers are jfiven by statute.) 6. Cbat the unMrlallllig of the Company will be carried on at lor ^'■'^'"^ which is or arc within the Province of Ontario, and that its Post Office will he 7. Cbat the twab 9n« of the Company will be at S. Cbat the amount ol the Capital StDCll . f the Company is to be Hollars, t). Cbat the said stock is to be divided into, Sbatce of. , 10 Cbat the said (The Directors, who must be at least three in number, must be petitioners and shareholders. ICach Oireclor must hold stock absolutely in his own ri([ht;l are 10 be the Brorleloiial BIcectOM of the Company. 1 1. Cbat by subscribinir therefor in a Acmoiaiibtim of Burccmritt anS StOCh'SOOh duly executed, in duplicate, with a view to the incorporation of the Co.npany, Vour Petitioners have taken the followinj- amounts of stock set opposite their names : I'KTITIOXKR.s. .4„„„„„ „, „„,k .,„|,„.,i,„i ,,„. ^ out m»LL.*lu*. "fA iDitniint II, ,1.1 ,^l;H. 'w mirilA Kiii.i.AHs. wn' 1" .1. U.S. M"!"*' J.(>I.I.,*IIS. 'NoTK.-rt all, )w,, 111,111 ■«»h or (ithfrwiw, has ai-tii»ll,v I" en i„u|e I,' purtii'iilHra thvi«uf lilay be let uiit httv. I III OROANIZATION FOMIS. Vow »'■ "> <- ""!• I- Ih. .Ilw.lhmi„. Hl.n.tur.. nilva Vatcft at • day of ic)o FORM 6. Affidavit Atladied to Ontario Petition. AmOAVIT. pronlnce or Oitt«rlo. \ County of ', To Wit : j Cbc 5. of the of in the County of Ksquire, make oath and say I. Cbat I am one of the applicants herein. 3n tb« tttatter 0( the herein appMcation for the incorporation by the (frant of I-etlers Patent of Xlmiteo, BOOKKEEPING FOR JOINT STOCK COMPANIES. --a i. CiMt I have ii knowledK* *»' the matlvr, iini) Ihal the jiIIck'*!'*'"'" in (he uilhin Petition contHined are. to the h<«l ol mv km>«ledjfe and helitff, true in suhKinnce jind in fact. .(. CtWt I iim infornicd and believe that eiuh IVlitioncr \> of the full HK« t'f Iwenty-onv year*. ■;. CtMt thv propon.'l i:orpt»rate name of the Company is not on any public (fround objectionable, and that it is not that of any known i.\^,n- pnn\, incorporated or unincorporated, or of any partnership or individui'l, or any name under which any known business is beinjf carried on, or so nearly resemblinif the same as to deceive. 5. CtMt I am satislied myself aud am assured (hat no public or private interest will be prejudicially affected by the incorporation of the Compans as aforesaid. Sworn before me at the ', "f in the County of this I (Siifrature t)f Heronent.) tlavof A.I), ryn .' (Sitf.) .\ Justire of the Peace, or a Commissioner for takin^^ affidavits, etc., (or as the case mii> be). FORM 7. Affidavit Vtrifying a8:niturei to Petition. PROVIXiE OF OntaRH County of \'ork, To Wit : In the matter c( the applicntioii, under the Ontario Companies Act, of David Hoskins and others for Incorporiilion as the Feder- ated Business Collejjes of Ontario, Limited. I, Chas. I-:. Lailey, of the City of Toronto, in the County of York, Chartered Accountant, make oath and say : I. That I was personally present and did see David Hoskins. Charles R. McCullough, James W. VVestervelt, William Brooks and -* ORGANIZATION FORMS. Samuei T. Willis, five of the applicants lor incorporHtioti by I.l-IU'is Patent of the Fodcratcd Business Collo^res of Ontario, LimiteJ, si^n iho petition hereunto annexed, and marked Kxhibit "A" to this, my affidavit. -'■ That I know the said parties. ,1. That the sif^naturcs " D. Hoskins," "C. R. McCuIlounh." '■ J. W. Wcstervell," " W. Hrooks," and ' S. T. VVilhs," are the true Nij^nia- tures ot the said parties. 4- That the sijruiitures " Chas. H. Lailey," attestinjf the sijjnatiircs hereinbefore mentioned, are the true signatures of me, this deponent. Sworn before me at the Cilv of I Toronto, in the Countv ^-^f \'ork, this twenty-tilth day of j CH.-\S. K. L.AILKV. June. A.l). H)(ii. K. C fl.lTK, .\ Commissioner in and for the County o( Vork. BOOKKE.=f .1. ■. FO' loir; r stock companies. sis. ''Si. Ob," t < ^- I S 2eS 3 "S ass ■^ r-r. M . - 5 Z.I I 2Sg 5 5 5»' :j e w U ,= 5 K » E ■a o >,o ■HlE. W U 3 C X -■=;e r; ■/ 4ii» -,».= -"i i. '^ '2 s,»-- 3 -rf -' «^ 3~ > II Sis X - i, ^2 2; « 'I = i 3 lu; J "£ '7 X 2 = F •a - X » ? "^ s ?; c i. j- - ■7 > ^ •O ■^ t ^ ^ ■, _C c a. < ~i. -I H I t: % t ? ■a = > rt n° h < s b ^ i" i = 1 c ^ ■ ■£ -'- E^ j^^li , n ^ a< ¥ 4J X -^ / _ r-. •" .? SQ = _0 O - -O IE *" ORGANIZATION FORMS. FORM y. AffMavi, verifying Sie„«u,« ,o Mc^andum of Aj,„™.n, ,„i Stock Book. Proi-.nce up Ontario, In (he matter of the applicalion, under The County of York. [ °"'''"" Companies Aet, of David Ho-kins j„ ^^.. . '""' ""'"■" ''"'■ in^-orporation as The Federated ' ■ Business Colleges of Ontario, Limiied. I. Alexander Blanchard. of the City of Toronto, in the Coun.v of ^ ork. Chartered Aceountant, make oath and say : .. That I was present and did see David Hoskins, Charles R. .Me. Cullough. James W. W'estervelt, William Brooks, and Samuel T Willis herein named, si,., the Memorandum of A,.eement and .Stoek Book oi' the sa,d proposed eompan, , marked as exhibit •■ A " to this, my affidavit, ■!■ That I know ihe said parlies. ... ■!■. ™'" "" "is""""-" " O- Hoskins," .. c. R. .McCullough," •• 1 « Westerveh," •■ W. Brooks," ...s. T. Willis," are the proper hanl writinjf of the said parlies, per nanu- 4. That the si^-natures ■• Alexander Blanehard," attesting the signa- .ures hereinbefore mentioned, are the signatures of me, this deponed Sworn before me at the City of I Toronto, in the County of York, ( this twenty-fifth day of June, | AI.K.\AXDER BLAN'CHARD. A.D. iQoi. R. C. I'l.iTE, A Commissioner in and for the County of Wirk. |.Ska,..1 BOOKKEEPING FOR JOINT STOCK COMPANIES. FORM lo. Ourtet iBued under Ontario Companitj Act. O. MOWAT. Canada, Phovime oh Ov'tario. E5War6 the Sewentb, by the Grace of ll^J of iho l-niteJ Kins;, dom of Great Britain and Ireland, 151110, Defender of the Faith, J. M. GiBsox, Attorney- To all to whom these Presents shall come - General. G' :ETlNt; : llUlbCrCa0 the Omario Companies Act provides that with the excep- tions therein mentioned, the Lieutenant-Governor of Our Province gf Ontario in Council may by Letters Patent ii[ider the Great Seal create and constitute bodies corporate and politic for any of the purposes or objects to which the legislative authority of the Legislature of Ontario extends ; Bll» wbereaa by their Petition in that behalf the persons herein mentioned have prayed for a Charter constitutins; them a bod; corporate and politic for the due carrying out of the undertaking hereinafter set forth ; SilO wbcrcas it has been made to appear to the satisfaction of Our Lieutenant-Governor in Council that the said persons have complied with the conditions precedent to the grant of the desired Charter, and that the said undertaking is within the scope of the said .\ct ; How tbctctocc Snow K that by and with the advice of the Execu- tive (.ouiicil of Our Province of Ontario, and under liie authority of the hereinbefore in part recited Statute and of any other power or authority whatsoever in L's vested in that behalf me bo 1)B tbcsc ©uc Xeitets patent create ano constitute the per- sons hereinbefore named, that is to say, Charles Robert .Miller, -f* ORGANIZATION FORMS. Ill' the City of Hamilton, in the County of Wontworth. and Pro- vince of Ontario; James Washinjflon Watson and James William Wood, both of the City of London, in the County of Middlesex, and Province aforesaid, and William Burns, of the Town of Gait, in the County of Waterloo, and Province aforesaid ; Donald Hamilton, of the City of Toronto, in the County of York, and any others who have become sub- scribers to the Memorandum of Ay^reement of the Company and their successors respectively, a Corporation for the purposes and objects fol- lowing;, that is to say : To print and publish books, newspapers and periodica "s, and for the said purposes, to acquire the f>:ood-will and assets and to carry on the business of the fotlowin}^' publishing firms, that is to say;— The Twentieth Century Publishing Company, of the City of Toronto ; Watson and Wood, of the City of London ; Miller and Gray, of the said City of Hamilton ; The Ontario Lumberman, of the said Town of Gait, and any other similar concerns now established or that may hereafter be established, the Corporation Xame of the Company to be THK KKDHRATKD PCBLISHIXG CO. OK ONTARIO, LIMITED; the Share Capital of the Company to be one hundred thousand dollars, divided into one thousand Shares of one hundred dollars each ; the Head Office of the Company to be at the said City of Toronto, and the Pro- visit)nal Directors of the Company to be Charles Robert Miller, James Washin^'ton Watson, Donald Hamilton, William Burns and James William Wood, hereinbefore nienti'^iied ; 5n teetimollB wbcrcor, we have caused these, Our Letters Patent, to be issued and the Great Seal of Our Province of Ontario to be hereunto affixed ; TiCKtlKdd : Thk Honolra'"-E Sir Oliver Mow.at, Knight Grand Cross of Our Most Distin^^uished Order of S int Micliael and Saint (leorge. Member of Our Pilvy Council for Canada and LiEfTENANT-GovERNoR of our Province of Ontario ; at Our (BOfCnimCtit 130110?. in Our City of Toronto, in Our said Province, this twenty-fourth day of January, in the year of Our Lord, one thousand nine hundred and one, and in the first year of Our Reign. By command, J, R. STRATTON, Provimial Secrcfun: BOOKKEEPING FOR JOINT STOCK COMPANIES. FORM II. Petition for Incorporation under the Dominion Act. To His ExiELLENlV THK Govkhnor-General IN CorNlIL. The Petition o( ( Hvn- itisvrt mimt's hi full, adtln-ss ami nilliuir, or occupatiim nl'earh of thf itpplianits. J Humbly Slifwelh :^ 1. ThHt your petitioners are desirous of obtaining- a Charter ot Incorporation by Letters Patent under the provisions of "The Companies Act" (Revised Statutes of Canada, Chapter ug) incotporatin^' your petitioners and such others as may become shareholders in the company, thereby created, a body corporate and politic, under the name o'i " The Company" Limited , which is not the name of any other known company incorporated or unincorporated, or liable to be confounded therewith, or otherwise on public jfrounds objectinnable- 2. That your petitioners have given one month's previous notice of their intention to apply for the said tett-rs patent, by insertinjf the same in the issues of the Ciniudfi Gtint-tte of tlie following dates, 19 , viz: — 3. That the purposes or objects of the said company within the pur- view of the Act fi r whii,h incorporation is sought, are : — 4. That the operations of the said company are to be carried on at , and elsewhere throughout the Dominion of Canada. 5. That the chief p' ace of business of the said company is to be at ■*^e of in the Province of in the Dominion of Canada aforesaid. 6. That the amount of the capital stock of the said company is to be dollars. 7. That the said stock is to be divided into shares of the value of dollars each, 8. That the said are to be the first or provisional directors of the said company. ORGANIZATION FORMS. <). Thai j>,iir petilioiicrs have taken i in thereon the ^c ainouiit I'f stock, and paid -several amoiinti thereon set ODDosil,. t., .I,.- names as follows : _ "PP' Mte to their r X I ^iii'innt of An „ xUnn'^ »l'''>^'"'' "^ ""= '^'ock ^'"'■" ''"'TIOVKRS TH,!„EKORE PR „■ THAT \-our Kxcellenc, >vill he please• body corporate ai,d politic T t""""""'- '""""•V '■-»'^''. muler the name of ■. The '""'"" ■■""' "'J^^'^ "'"'■'«'''. ivi, V l-ompany" (Limited), Ami voir PfrnijoxiiRs IJated at the Sijfned and executed in the presence of ' IN in-TV HOfM; of dav of , in the Wll.l. EVER PRAV. , A.D. ig BOOKKEEPINO TOR ;oiNT STOCK MHPANIES. FORM ij. D«I«.Mon .0 Aoompany P.,i,io„ fo. Dominion Ch.rt.,. Canada, Province of fount y of To Wit : I, of I'rovince of In the matter of the application of iind others for letters patent of incorporation as "The Company" (IJmited). , of the in the County of . do solemnly declare :- hkI '■ That I was personally present and did see -Pec,^e „„„,.» ,„ „e pe.i.on " •Limited) hereunto annexed arc to the best of „,y knowled^-e and belief, true and correct. ,v The proposed corporate name, ■• Ihc . ,. ^ (--ompany " (Limited), is not. as I verilv ™ ^:r:T7 ""- '"- "-"-'>■■ ^--p-^ed:. .„: . ^^^ 6. That I have examined copies of the C.n„„„ «„.„,. p^wished on in each of the said issues of that pubhcation is inserted the noticri'! appl.cat,on ,„ this matter simila. to that hereto annexed marld *■ ORGANIZATION FORMS. 7. That I was personally present, and dkl see the annexed certificate or deposit duly slirned by ^ „.(,o is manauer ( agml or ctishi,-r ) o( the Hank of , at "'>' >'f , aforesaid. H. That I know the said 9. That 1 am the suhscribinK witness to the said document. .\nd I make this solemn dechiration conscicjitiously believing it to be true, and knowintr that it is of the same force and cffecl as if made under oath and by virtue of the ■• Canada Hvidence .Act, 189,5 " Declared before me at the of of , this •lay "f . .\.D, 19 ■H-li,.re it i. i,„|„„il,|,. f„r ,„„. |,,„„„ ,„ ,„|„.,.il,. „, ,„ ,|„. ,,„,,, „, ,„„ j„ „ .p.-ral i.u«Kra|,l,« .,f il„, ,|,.,.lar»i i, ,il|, „f ,,„„„,., |,. „ „,,, ,„ ,„„|, , , n,i., ,„,, l,„ve,l ,.,t„l,l,.l,„| ,„ „ ,„,„„„ ,.|„„„i„„ ,,„,„„„„„. ,,„„-.„i„„ ,i„. ,, , ,;„. KORM .1. Deposit Receipt accompanying foregoing Petition. liiinh ,if igu Received from on account >f ""•' *'"" ''f dollars, which aniount will appear at the Receiver-General's credit with this bank. Signed in triplicate. /*rii MttiKtffi-r. FORM 14. Draft on Government Account accompanying Deposit Receipt. No. $ liiink of ' ign On demand plea.se place to the credit of the Receiver-General, the Sum of Pro Manager. BOOKKEEPING FOR JOINT STOCK COMPANIES. KORM 15. Specimen of By-Lawi. The following, li,.|,,„.s ,,r, j-ivcn r„r iIk purpose of slunvinK such pom.s ,n company i,ff„ir, as are usually ^e^.ulated in thi, „av. liy-laws will, of course, differ very much accordinjr to Ihc nature of the business for winch lliej are framed. BY-LAWS OF THE MUSSON BOOK PUBLISHING COMPANY, LIMITED. f.isscd at a meelint- „r .Shareholders held at the head ,^mci of the Company, 17 Richmond Street West, Toronto, on Tuesday, June J,:;, ,„„. Meetings, 1. The annual meclint; of the shareholders shall 1-e held at the held office ,.f the e■ompan^ on the first Tluirsda; of July in each year „ the hottrof twelve o'cUhk noon, for the purpose of receiving the report of the Directors for the past vear, to elect I'irectors lor the eiisi,in(,- year and for all other ,:eneral purposes relatin,,. 10 the man.ijrement of the' Company. 2. lieneral meelinj,'s of shareholders may be called at any time bv the Directors, whenever they may deem the same necessarv, and it shall be incumbent upon the IVesident to call such a meelint; of the share- holders whenever he receives a written request to do so sisneu bv holders of not less th:,n one-third of the subscribed capital stock of the Comp-.ny for the transaction of any business specified in such written requisition aiui nolii.-e calHiij,"- the meetinj,-'. }■ Nolihcation of the time .and place for holding- the annual or 1 t'cneral meeting of the Company, must be ^-iven to each shareholder at least ten d.'iys before date of such meeting. 4. The Directors shall meet as often as the business of theCompanv may require and shall be called together by the President. 5. M all meetiuKS of shareholders, each shareholder shall b entitled to as many votes as he owns shares in the Company, and mav vote either in person or by proxy, duly appointed in writing. .All questions coming up at such meetings shall he decided by a majorUy of such vote,. *• ORGANIZATION FORMS. Dinclon. "iroc.ors of whom Ihreo shall form a Huorum. hy l '^^yi " ''"-'•'"'"- "f •HoComp„„,hal, h, .ho.„ ». The IVcsKl,,,,, shall, ir pr..,en., preside at ,he „,eo.m,.s of .he «hen e,„,,,„,,,, ,.„, „^^.^^. ^._^ ^^ ^ ^^^^^^ ^^^^ ^^^^^_^^^^^ ^^ * """'•""• '"—hall be in his power. Uue,.i.,„, „H«i„K • a„> ea.hn.ee,orprese„. in p,..s„, ^,„, .„„„,j ,„ ^,„^, J^ > ' ; :7 > "' -"-"- ^■"^•'""- »'.^'" eaca,.i„,.„,.i , 2. i:;r:r:;ea:;:'""^""^-'^ •''"'■--- ■---■--• y. The Seeretar, shall keep a record of the proceeding-, of all n,ee,. «nd shall be .he custodian „f ,he seal and books of ,he Company. ' .o. .Any Shareholder „,„ i„ arrears for payments for calls upon hi. Mock. an. who holds in hi, own ri,-h, „„. u-ss than share, may be elected a Director. ■*> "■ The Board of Director, shall from t,me to time determine the .,al«ry or wages to be paid the officers of the Company. .^. The Company shall have a corporate seal of such design a, the Board may determine, which seal shall be in charge of the Secretary and ^^ru«d Shan be authenticated by the signature, of the PreLnt Slock. ..,. Shareholder, shall not, with the consent of the Board of Directors, transfer their shares to any person no, now a member of the Company, and all transfers whatever, shall be recorded in a book pro- vtded for ,ha, purpose, and signed by the transferor or transferee, whose signatures iriust be duly witnessed. BOOKKEEPING FOR JOINT STOCK COMPANIES. :« Accounli. .4. A. .he „„„u,.| ^„,i„,, i„ „„,h y,„. ,h,. „ir...,.,r> ,1„.|| |„y iH-fore ,hc (.„mpa„y u „a..m.nt uf .he i„cumc and expenditure for .he l«.l year. ...felher wi.h a balanec shee., .h^.winK 'I..- a«,se.« and liahil- l.les uf th.- fompan, arranifcd under iheir proper heading,, Auditin. ■S. One or more audi.or. «ho must be Charler-d .Vcounlanl, sh HI He appoin.ed annually by ,h. shareholders, a. ,be ^.encral mee.int-, «hosc dui.es ,. shall be .0 examine and audi, .he books, vouchers a..d a.eouuts "1 Ihe Company, and all doeumen.s having- reference .0 .he lompan^s business. They shall also examine and verifv .he linancial s.a.emen.,".,, be presented a. .he aimual Keneral mee.inj; of .he Company, Bank Account. if>. ,\ bank iuvoiml shall be kept in tlic tlic Canadian Hank of (.\imniLrtc. Toronto name of ihj (.'omparu at 17- All cheeks shall be si^-ned by any .wo of .he followinL- .hree ""mely : .he Preside.,., \ice.rresiden. and Secre.ary-Treasurer. 18. The direc.ors are hereby empouered .0 arran.-e for advance, from .he Bank by »ay of discoun. or o.herwise and .0 give such securi.v as may be deemed reasonable .oul in ,he i.,.ere,.s of .he Companj . ' Changing By-Uwi. ..). These By-law, may he repealed, amended and re-enac.ed from t.me.onme hu. such change must be confirmed a, a general mee.ing duly called for ,ha. purpose, o.herwise ,hey shall have force only ,m.il the nex. annual mee.ing of .he Company, and if no, contirmed .herea, shall Irom tha. .ime be null and void. JOINT STOCK COMPANY BOOKS. C H A !■ r E K III. JOINT STOCK COMPANY BOOKS. "'"" """" "''■'■'•'•im; looks ok kh.ok,,-,,.,,,,. ro kxam,». „ook, lU>OK« Of A>rO,M- ANNr.W. .TATEMHNT OHNTOMK AN„ KXPKV,.,. rl'Ht: INS, A,. S, „„A«V OK AKKAIK« JO,»r ,TO, K „OOK» MKMOK- AM.UM OK A..«KK„ENr AN,> STO.K LOOK APrU.ATION AN,. V,,0,. MKVr ,U,OK ,V,TA,.MKVr liOOK .V.lA.MKVT «►:>,-„■, «OOK - SUH K .KKT.KKATK UOOK TKANSKK, „00K KOK« OK IKAVsKKH- RK.,,STKK OK ,KAX«KKK> „,K M,A«K ,.K,„.KK ,„VM.KM. „OOK - ,K.,»TK« OK niKht lOKS -tJU: MINI IK lUIOK. Joint StCKk Book-keeping. Th. ho,.k.k...pi„^. for a Joim SUhK -'■"P-'.v .l.lK.s „o,„ ,lu, o. „ Partnership onlv in so far as ,l,c .„,ri.s ralau- to .Ik- cap„al a.coun.s of ,ho sharWrolUers or partners ; ,h. orUinar, b.,s,„oss .ransa>.-.,on, of ,b. .onc.rn are rccordej in .xaalv ,hc san,e „.,; M. both .as.s. J.,s, a, ,l,is poin,, the s.uUon, is r.conim^nU.U ,o make hM„...„ p.r,ec.,y familiar „i,h ,h. ex.rac.s herein ,.iven from ,he On o Companies Ae, tonehin,- upon ,he Hooks ,o be kept, Returns to be tnaje ele. 1 he Dominion Act ,s substantially the same in these respects, Book, of Record—Section 7. of the Ontario Act reads as lollows ■ ••1 he con,pany shall cause the secvtary or some other officer espec upt ::"::,:'" '""""^•'""^^""•'^-^"'--- ""e ("I A copy Of the Letters I'aten, incorporating the company and of , y s,,pp,emen.ary letters patent issued to the company ; and if Lcorpo- rated by special Act, the chapter and year of such Act i W The names alphabetically arran^-ed, of all persons who are or have been shareholders in the company ; (r) The post-olllcc address an such shareholder ; njf of every such person whil 4^ ■OOKKBBPING FOR KKNT STOCK COMPANIES. ^'' {li The iuimh«r of shiirvi of ilock h«y h> hhmU >liiirvlu'lil».r ; ((') The amount paiJ in iuid ri-maiiiinu: unpiiiil retpvi. lively, on ilu' sUK'k of each sharcholJf r ; (/) The Jiilc ii.iJ lUlur partiiiilars .if all I^anl»fc^^ ot srotk Mi lluir oriler ; anil 'a*-) The iiitmes, po>tl-ofTice nUdre^se^, niiU ^.illllll^,'s of ;t1i persons « V.o itre or have Heeii direetors of ihe lompanv ; witli ilu >e\LTitl d;ites at wliiih «.akli person Iietanie or vea--i.*d to Ik -ikIi diivitoi " Rffht to ExAtninc Booki. Section 74 to the Hooks of Ke.ord says : the referring "Sueli bookn shall during; reasonable t'usiiie'iH hours of every il,i\ , except Sundays and hoifidayx, be kept open ti»r the inspt'tiion ot shari- hoWer> and creditors of the company and tiK'ir persinial 1. |in. -iiiianv ls or a^fenls at ihe head ofTlce, and everj such -.h-irehoKUr. neditor, iiyiHt, or repre^iMitative. may make evtrruts therefrom. " Books of Account. Section ;; of the tli'lario Act reads .is follows : ■■ I'he directors shall cause proper hov'ks ol account to he kept con- taining; full and true statements : ((/. Of the conipaiu's financial ind iradini; transactions ; {b) Of the stock-in-trade of the company ; (r Of the sums of money received and expended hv the Ciinipaiiy, and the matters in respect of which such receipt or expenditure lakes place, and ((/) Of the credits and liabilities of the compam ; and also a book or books eontainint; minutes of all the proceedings and votes of the com- pany, or of the board of directors, respectively, and the by-laws of the companv, duly authenticated, and such minutes shall be vcritied by the signature of the president or other presiding oflicer of the eonipanx." Annual Statement of Income and Expenditure. - This matter is dealt with in Section 78 ot the Ontario Act as follows : ** At each annual meetinj,', or at least once in every year, and at in- tervals of not more than fifteen months, the directors shall, at a general 4w JOINT STOCK COMPANY BOOKS. r-:,:r-:rc,-"'~™"-''- •'•■■-•-■"•■ Annual Summary of Affair,. -Section ,n of this \c. r..a„i„ provided bv tbf (■ ,. ■ Z "" '"'"'''' s':h='l"les enumerated as follows : '"eymaybe -■ The Memorandum of Agreement and Stock Book 2. The Application and Allotment Book. 3- The Instalment Book. 4- The Instalment Receipt Book. 5- The Stock Certificate Book. 6- The Transfer Book. 7- The Register of Transfers. 8. The Share Ledger. 9- The Dividend Book. ■ o. The Register of Directors. II. The Minute Book. ■He subscriptions entered. I. „„, be :.:2:: 'Z'2:ZZ BOOKKEEPING FOR JOINT STOCK COMPANIES. JOINT STOCK COMPANY BOOKS. member, of ,h. ,<„„p„„, „„,, ^.„,^^ ,^^.^ .sub.scrip,i„ns i,. duplic.c vn,u., Secretary alon^, u-iu, ,ha Petition for Letters Patent. One copv a r T r t' """ "" °''" '" '"'"'^^'' '■"'' - '^ •" '^' -- paii>- I his book is (reuuentiv <-.H«.H »»,= c t. - - "t^uenin (.ailed the Subscription Book and .sub- sin-h as those described on pajre 19. Stoel^^Z.,'"- '■""''"■ "'"'■""■■ "" ''^-"-'"'"- "f Agreement and Stock Book ^ivcn on pa^'t ^y. Boot f ,^ .7 , ^ Memorandum of Agreement and Slock nook (or the East \ ork \tili;,. , /^ ... f,ri, k- , ■ I ■ *- Company, Limited, of Markham, On. d'ivld' T " *•' "*•'""'•''' "■'"' "" ""thori.cd capital of $7,,oco, ded into no shares of |,cx, each. Enter up the fo.knvin, suhtcrip: - ^ntcr np e a,„es of eight subscribers for amounts aggregating |,8,^ and :!;:i:r:zr: "-^^^ •" ^'^ " '^^"' — -— - - Appll<:ati„„ and Allotaen, Book. -We have already referred ,0 nc practice of sending ont blank application forms to persons who are nkely ,0 invest in the .shares of the newly-organi.ed company. The pur- er; fth^ "T""'" "" ""°'"-' '-' - '" ^-p » ^'•--■^^• hereon 1,7'' "''""""*■''' """ '"^ ^"-es subsequently allotted hereon. At ,he expiration of the time designated for receiving subscrip- fonsthe applications .,re entered in this book, the firs, partofwhic^ con , f cia, CO s for the names, occupations and^ddressl „ i?, r cei red ' "'" '" '"'"''" °''''"" ''<"-" '^ -" '•^P- 2-e.v ed on account of same. This information is placed before the directors, as soon as the subscription lis. closes, for the purpose of alio, BOOKKEEPING FOR JOINT STOCK COMPANIES. 41 a" I -lli[|V UK >)I1|I llllllKliy I) 'i I '• ■|-.-»U"[IV w-i.i,tt|i^ ^ •l.u».>i| j'l j.in->'| jii .i.M|iiiti.^ 71 •»• -^ ^ -J ■""!M"!|i| ; i ,i : ; -i|i.«i'i"ii|...i.i,i ;■, -.;.'! J M.ijiuiiillns.uiiii^ ; i :; ,i ; ! I ^ « : ^ i ^ B S ; £ [ ( Name of Applicant. Jijfiji < I k i -s % i 1 'uo!i«oi|ddv JO •-N - •'^■' ' ■- « '- m '- ;OINT STOCK COMPANY BOOKS. ■ins tiK .shares. Letters of .Allotment »re sent to those whose applica- tions have been acceDted in part or in full, and Letters of Regret are nia.led at the same time to those whose subscriptions l-^ve been refused. In our illustration we have assumed that the ... onto Engraving Company, Limited, 1- placed upon the market for open subscription 500 shares of its stock, par value $,00 each, a deposit of 10 per cent, to K- made with the application and the balance to be paid on allotment The .Application and Allotment book shows the directors that (,45 shares have been subscribed for. which is ,45 more than they intend to issue. After carefully conside.iuK the applications thev decide to allot the full number applied for by Blanchard and VVestervelt ; Hoskins. Tindall and Wood receive only ,.,0 shares between them instead of the 185 applied for i the applications of Gray and Murray are rejected altOKether. Let- ters of Allotment would be immediately sent to the first live, informinfr them of the number of shares allotted and the balance still due upon them i the other two would receive Letters of Regret containing cheques for the amount received with their applications. At the same time that portion ot the Application and Allotment book dealing specially with Allotments would be completed. In this connection it will be noticed that the ca.sb paid with application by Tindall, Hoskins and Wood was considerably more than I o per cent, of the par value of the stock allotted them i this is adjusted by reducing the :=mount payable on allotment to the extent of the excess. EXKRCSE 4. - Rule form and copy carefully the Application and Allot- ment Book of the Toronto Engraving Co., Limited, as shown on page 41. ExEHcisE 5.- The Toronto Storage Warehouse Company, Limited has an authorized capital of $,5<.,, divided into .,,00 shares of $100 each. Nine hundrea shares are offered for subscription through A. E. Ames & Co., brokers, each application to be accompanied by a deposit of 10 per cent, of the amount subscribed for. Prepare form of Applica- tion and Allotment Book and enter therein the following applications, allotments and refusals : D.ivid Hoskins applied for 240 shares and was allotted ioo J. W. Wcstervelt A. W. Young S. T. Willis W'm. Brooks Alex. Grey Wm Burns 200 40 )8o 120 200 None BOOKKEEPING FOR JOINT. STOCK COMPANIES. 43 Exercise 6.- Write, Letters of Application for sh;ires in above com- pany as sent in by D. Hoskins and J. W. VVestervelt. d'se Form 2, page 19. . KxERctsE 7. — Prepare Subscription Korm suitable for use by the above company and show how it would be filled in by A. \V. Voung in subscrib- ing lor the shares mentioned against his name. iSee Form 2«, page iH.) Exercise 8. - Writp Letters of Allotment to S. T. Willis and Wni. Brooks. (See Form 3, page ly.) Exercise 9. Write Letters of Regret to .Alex, (.irey and Wm. Burns. (See Form 4, page 20) Instalment Book. - This book is for the purpose of entering up a lif*l of the shareholders and showing the amount payable by each when calls are made upon the stock. Sometimes instead of using a separate book the Application and -Mlotment book is ruled with additional columns for each call. As stock does not often change hands until fully paid up the Instalment book may be prepared with special columns for the differ- ent calls, thus doing away with the necessity of writing the names more than once. Instalment List of the Final Call of _^o per cent, on the Stock of the Ottawa Lumber Co., Limeteii. due and Payable Oct. ist, 1901. ShaiehoLk-rs. A.lm) oil .10 IX) -J4:)0 00 " bee. 31 .Ia«. W. C'laigie Hiuiovcr. Ont. 40 1-200 00: ' l'200 00 '■ lOct. ! Aitlmr Blott Diinnville, Otil. .10 900 (» ; ■ 900 on ■' Sept ») 1 Jim. M. LiimlHTH Toronto, Ont, 'JO 600 ;00 2 i.TO, tt02 .w' '■ Nov Alex. K. Kobertioti ! i Hawkesville, Ont. 35 340 1050 m ; toTiO 10200 jOO 32 W.IOSS ' ' '1 00 50 " Oct. JOINT STOCK COMPANY BOOKS. BOOKKEEPING POR JOINT STOCK COMPANIES. ^" JOINT STOCK COMPANY BOOKS. tlxERLtsE lo. -Copy carefully the Instalment 1 ist of the Ottawa Kutnber Comp my vhown on pajfo 4_-t. ExEKi-ise II. -Prepare an Instalment List for a Second Call of 30 per cent, on the Capital Stock of the Toronto Storage Warelu-use Company, due and payable on March 1, 1903. (See List of Shareholders, Exercise 5, page 4^.) ExKRiisE 12.- Prepare an Instalment List for a First Call of 60 per cent, on the Capital Stock of the East York Minin>; Company. {See Exercise j, pajje 40.) Instalment Receipt Book. The receipts issued to shateholders tthei, they pay their Calls are known as Instalment Receipts or Scrip. The blanks are bound tofjether and consecutively numbered like bank chei^ues. The shareholder sijjns an acknowled^fment on the stub of llie receipt that he has received Scrip for the amount stated thereon. These Receipts are exchan(,'ed for Stock Cerlificates as soon as the shares have been fully paid up. HxERi ISE 13, -Write out Instalment Scrip and show stubs properly tilled for the payment of the first call on the capital stock of the East Vork Millinj; Company. (See Instalment Li.st, Ex. 12, above.) Slock Certificate Book. This book is very similar in form to the Instalment Receipt Book and consists of blank stock certificates with the corresponding; stubs. As soon as all the calls on the stock have been paid in, Stock Certificates are issued in exchanjrt.. for the Instal- ment Scrip held by the shareholders. Whenever shares are transferred the transferrin),' shareholder returns his certificate to the company and a new certificate is issued to ihe purchaser for the shares transferred ; it the seller still retains any shares he receives a new certificate also. ExERClsK 14. Copy carefully on blank paper the forej^oin^ Certifi- cate of Stock, includinjf the stub. Exercise 15. - Write out Certificates of Stock, with stubs properly filled, for the shareholders of the Toronto Storage Warehouse Company as per list in Exercise 5, page 42. Transfer Book. -W' hen shareholders are desirous of transferring any or all of their shares to another person, a regular form of transfer must be signed by the transferor for this purpose. These forms are bound together in a book kept at the company's office, and generally BOOKKEEPINO FOR JOINT STOCK COMPANIES. 47 include not only the transfer but an iiKreemenl to be signed by the transferee in which he formally accepts the stock. These transfers and acceptances should be kept in the company's possession, as they arc Ijenerally the only written evidence it has of the transaction. Shares are frequently transferred by brokers holdinK "> Power of .\ttorney from the transferor ; in such cases the Power of .Miorney should he filed care- lully away, or attached to the actual transfer. Forms for this purpose are commonly printed on the back of the Stock Certificates, In passing it may b« well to call attention to the f.ict that shares not fully paid up can only be transferred with the consent of the directors of the company; indeed, this consent is required by many companies even after the stock has been fully paid up, to prevent the shares nettin); into the hands of undesirable persons, EXEKCISE 16, -Copy the forCKoint; Transfer and .Acceptance on blank paper. EXEBCISE 17, — Write out Transfers and .Xcceptances of the follow- iiiK shares of stock in the Toronto Storage Warehouse Co., Limited ! Prom David Hoskins to J. W. Westervelt, jo shares. " William Brooks to S. T. Willis, 40 shares. A. W, Younf;toC, R, McCullough, 120 shares. (See Exercise 5, pa^re 42.) Form of Transfer. ^i- Share Led. FOR V.M.UE RECEI\'ED. I, W. T. Kernahan, do ! Fohos 4, hereby asst(,Mi and transfer to Wilton C. Eddis, all mv rittht, title and interest in Sixty shares of the capital stock of n,' rum,,/,, /(,«,* PublUliii,g C„,„p„„y, Limilrd, on which has been paid the sum of Six Thousand Dollars, and which are now standing' in my name on the books of the said company, WllNEss my hand at the office of the Company, in the I City of Toronto, this and day of December, 1901. j Witness ; j W. B. TiNn.vi.i.. w, T. Kernah.\x. I HEREBY .\CCEPT the foregoing transfer of Sixty j shares of the capital stock of 77/e Tomnti, H,mk Publishing^ Ci„np,iiiy, Li„,itftt. i Dated this 2nd day of December, 1901. ' Witness ; W. B, Ti.\uAf.i.. VV^iLiu.\ C. Eoms. JOINT STOCK COMPANY Br«-IKS. •3 I J i I J J < 7. i 2 ill! ■|,!»l BOOKKEEPING FOR JOINT STOCK COMPANIES. m KxEm,,, ,8. - Writfout new CerlificnlM of AhKk i»Ui'J to Hrooki »nd W,Mi. .f,„ ,he above lr»n,fer, h»v. been made. (See K«rci« , paKC4J.) Rccbter of Tr«oiferi. Referring- back lo clause (f, or Seclion 71 of the Ontario Companies ,\ct a, quoted on pas-e ,;, it will be seen that jomt .stock companies are required to keep a record of toe dale and other particulars of all transfers of ,.ock in their order. Such a record should he kept m a careful and systematic manner, otherwise the account, of the ,nd,v,dual shareholders are no. likely lo he reliable. .Several form, are in use for this purpose, but the following one will be found sui.abl, to the need, o( most companies. An extra column may be added to record the serial number, of the shares transferred if desired The information recorded i„ this ReKister is, of course, obtained from ihe Transfer book ; the necessary entries in the Share Ledger may be posted either from the ReRister or the orij-iiial Transfers. F.XERCISF 19. Rule up a form of Transfer Register on foolscap paper and enter therein all the transfers mentioned in Kxercise 17, pa^e 47. KxKRCst JO. Rule up form of Transfer Refcri,ter, entering therein two transfer, of stock on which .5 ' has been paid, two on which 40 has been paid and three fully paid up. The Share Leijer. The purpose of this hook, whicli i, frequently called the Stock l-edser, i, to show at a glance full information re^-ardins; the stock held by the individual shareholders. .\„ account i^ kept with each of them showing his name, occupation, address, the number of shares he acqui.es, transfers or holds, the par value of said share, and the amount, paid in or remaining unpaid thereon. The various entries are usually obtained from the .Application and .Allotment book, the Instal- ment Receipt Stubs and the Trarsfer Register, although many prefer posting all cash items from the I'ash book. We submit he.ewith several forms of Stock Ledgers, all of which hav; been found to be thoroughlv practical. In Share Ledger ",\," Hoskins has been allotted ijo shares of stock and has paid a first call of 30 per cent, thereon on Sept. ,(, lyoi. A, all of the entries under the headings "Shares" and " I'ar Value of Sh:.res" are self-explanatory no remark, need be made about these ; the other columns, however, may not be ,0 easily understood. As 30 per cent, or JOINT STOCK COMPANY BOOKS. i 1 M H i I'l'H i"a n H 1 I all 1 6 ■I'l'H im 4 ■[hUiiiKiv ■? i ^ ■|MJJ,.J.1I«,IJ. I S 5 J fi « a = 2 di i ^ jl a j g •J'i'A S I = = = = I'l'H 1„V 2 2 i i = - .« 1 '|»jii •l>ujaj.u»jj. 4 2 •ojjjo ■|".J » " S 2 s S J j L 1 < 1 n ^ 3 e K U It S -i « 3 >; ^ y. y )£ = ? =5 i« - ^ BOOKKHBPING FOB KKNT STOCK COMPANIES. M $,)o per Khare ij, he buys _\o shares of the same stock from another shareholder and as $70 per share has already been paid in on it he thus ini^reases his Paid I'p stock by Jjitm, making a total of 110 shares i>f stock on which $77;ement of the columns in Share Ledj^er "B" to that shown in "A." The information jjiven is exactly the same in both cases so that a detailed explanation of the entries j;iven in the illustration is entirely unnecessary. Where it is desired the columns dealintf with the Par \'alue of the shares may be omitted ; this, however, is not recommended. It will be noticed that in this case all the shares have been transferred by McCullouffh at ditferent times to other persons; the columns showinf; the stock acquired and transferred have thcefor;; been balanced and the account closed. A third form of Share Led^fer and one that meets with much favor is that shown in " C." It is arranged very much after the style of the ordinary ledjfer, havinjf its debits on the left side of the book and its credits on the rif^jht. Kach side is ruled with columns for dates, particu- lars, share*, par value, and paid up stock ; sometimes the columns for Par \'alue are omitted. When this form of Stock LedK^f is used it is advisable lo balance the account whenever there is a transfer so that the exact amount standing- to the credit of each shareholder may be ascer tained at any time without difficulty. For the purposes of comparison we hnve UTitten up the ^imo tr;in«artton« in "H" and " C." JOmT STOCK COMPANY BOOKS. "I'l'MS P!wl"i.l ■iin i'!M i I i I i i i i •■■■""IS i i i 5 B S a I ■''il I'!W,| j J ^ * E St X if ■"»"MS I I = ■'M i'i»,i , i IS I 11 5i I t~ lil('i No. o I Atnmiiit of i fjhareB. Dividt'iKl. •Toliri Stephens S. T. Willi. .TameH Murray Tho«. BU-li ' Alex. WokI Wa l.my EiUit Tuiiiiito. Out. i Ottawa, Out. I Hull, p.g. j Pembroke, Ont. j .Smith'H FalN, Ont. 'Iiielph, Ont. I 11-211 I IIM { ftt400 I m I Agreeinent, page 39, said fotnpany having declared a dividend of 9 per cent, on .August 31, nyoz. Exercise 30. Write up Dividend Sheet for the Ea.st York Milling Company, said Company having declared a dividend of 10 per cent. (See names, page 40.) KXERCISE 31.- Prepare Dividend Sheet for the Forest City Puhlish- ing Co. of London, which has declared a second Dividend of « per cent. Use same names as for Exercise 3, page 40. Exercise 32. -Refer to .Application and Allotment Book, page 41. and prepare a Dividend Sheet as per list of shareholders there given, supposing the allotted stock to have been subsequently paid in full and a Dividend of 5 per cent, declared thereon on Julv 31, 1902. Retilter of Dirertotl.- The use of this book will be readily under- stood by studying the illustration given below. As the Hoard of Direc tors seldom consists of more than live members of the Company, it is better to write out a new list each year rather than attempt to use the same list with corrections. We submit a specimen Register written up for two successive years. W JOINT STOCK COMPANY BOOKS. BxERciSE .ij. -Copy the follDwinjf Register of Directors. Exercise 34. — Write up a similar Register containing names of five Directors, elected June i, 1900, three of whom retire June 1, 1901, and are replaced by three others. Rc£:::3tcr of Dhvcton. I)>M NftnifH. Occupation. 1 Afidresa. IJate Retirwl. Remarks. June .1(1 ) Hugh Blain Mercliant 21 Fnint K.. Toronto _ IDO-l June X) ■' ; Johnl.UmWionl 5,-J.St. (JoorgeHt.." " ■' Re-elected " : Wm. Logan : AccounUnt SI WillcHick St.. ■■ " " " ! JTO. F. Eby Munhant KM Bloor W., " Reelected •' 1 H. P. KikharJl Suarlwrough, Ont. June 30 Juhn I. UaviJaon Merchant 53 St .( leorgB St. , Toronto " i" '■ Jon. F. El)}- ■■ I3t Bloor W., 1 Rmil. C. Boeckh 11 Prince Arthur Av.," Alf. VV. Will. Accountant 214 Wellraley St., " Merchant .518 Ontario St., ' The Minute Book. This is a hook kept by the Secretary of the Company for the purpose of recording the proceedings of meetings of either the Board of Directors or of the Shareholders. The By-laws of the Company should be written in this book and the record of each meeting, after being signed by the Secretary, should be verified by the signature of the President or officer who presided thereat. In order that a correct record may be made, each motion should be written out by the mover and the result of the vote marked thereon by the Secretary and verified by the initials of the Chairman. The Minutes of each meeting are always read immediately after the opening of the following meeting and a vole taken as to their accuracy ; if confirmed, they are signed by the President. In many companies separate Minute Books are kept for the Direct'-is and Shareholders respectively. BOOKKEEPING FOR JOINT STOCK COMPANIES. Mtnuin Of the first Annual General Meeting of the Forest City Publishinff Company, Limited, held at the head of^ce of the Company, in the City of London, Out., the 30th day of June, 1901, ;it ten o'clock in the fore- noon. The President took the chair and called the meeting to order, stat- ing ihat a quorum, as required by the By-laws of the Company, was present. The Secretary was then called upon to read the notice convening the meeting. The minutes of a general meeting of the Company held at the head office in the City of London, on January 20th, 1901, and ot two special meetings held subsequently were read and there being no dissent were confirmed by the signature of the President. The report of the Board of Directors of the Company and the accounts for the year were then presented and taken as read. On motion of Mr. A. W. \'oung. supported by Mr. J. Beveridge as seconder, it was resolved that the report of the Board of Directors and the financial statement for the year annexed thereto be received and adopted. After discussion of the report the Chairman put the resolution, 90 being for and 10 against the same. The resolution was declared carried. The matter of remuneration to directors was discussed at some length, and it was agreed to lay the matter over until the next annual meelriig. On motion of Mr. Willis, seconded by Mr. J. W. V'estervelt, it was resoUed that Messrs. Hoskins and Blanchard. Chartered .\ccountants, be engaged as auditors of the Company's books, etc., for the ensuing year at a fee of S150 per annum each. The resolution was put and carried without dissent. After nomination, ballots were taken for the election of five directors of the Company for the ensuing year. The secretary, who was appointed ■" ;OINT STOCK COMPANY BOOKS.- as scrulinecr, announced thai Messrs. H. T. Gough, S. T. Willis, J. Heveridge, R. Schurman and _|. W. Weslervelt, having received Ihe iiecesrary number of voles, were elected. The Chairman thereupon declared the aho\e fjentlemen duly elected as the Board of Directors. On motion of .Mr. T. F. Wright, supported by ,Mr. Wm. Brooks, it was resolved that the thanks of thi.s meeting of shareholders of the Forest City Publishing Company, Limited, be presented to Mr. A W. Voung, General Manager, Mr. George Wiggins, Secretary-Treasurer, and to the other officers of the Company for their efficient services during the past year. The mover put the resolution which carried unanimously. The meeting then adjourned. GEO. WIGGINS, Secretary. Read and confirmed at the second .Annual Meeting of the share- holders held June 30, 1902. J. W. WKSTERVELT, President. Exercise 35. -Copy the above minutes on blank paper or into your book as directed by your teacher. 4 BOOKKEEPING FOR JOINT STOCK COMPANIES. C H A P r R R IV. ENTRIES IN BOOKS OF ACCOUNT. E.VTBIES IN BOOKS Of .UCOLNT— SUBSCHlBrNO AND I'AVfNli hOB SHARKS - TBANSFERBrNl. SHAKES -DIVIDENDS RESERVES- BONISES ORGANrZA- TEON ACCOINT, PREMMINARV EXPENSE AClOlNT IMPAIRMENT OF CAPITAL ACCOINT lONVERSION OF A PARTNERSHIP INTO A JOINT STOCK lOMPANV AMAI.OAMATION Of COMPANIES PREFERENCE STOCK- IN- CREASE OR DECREASE m CAPITAL STOCK - ISSUING SHARKS AT A DISCOUNT- TREASCRV STOCK FORFEITURE OK SHARES. Enltia in Bookl of Account. -Provided that the student has already a good knowledge of the principles of Double Entry Bookkeeping and has made himself familiar with Company Books and forms, as explained in the preceding chapters, he will have very little difficulty in understanding the entries of a Joint Stock Company character that belong to the Books of .Account. These relate almost exclusively to Subscribi , and Paying for Shares and the payment of Dividends thereon. Altlwii/rli Ihe illiislm/ive entries vliieh follcm are, for the s„»e of convenience, /riven in Journal form llie stii,leiil neeil hardly be tolil lliol in praelice Casli Iransaclions pass llirough Ihe Cash Bool:. Suhcribing anil Paring: for Shares. -In the General Ledger of a Joint Stock Company the account which corresponds to the capital accounts of the proprietors in a Partnership is called " Capital Stock," and may, at the option of the accountant, represent either Paid-Up Capital, Subscribed Capital, or .Authorized Capital. For the purposes of com- parison thi! entries of a newly-organized company, made from these different points of view, are explained below in the answers to Exercises 36. 37 and 38, respectively. Exercise 36. -The Sarnia Plough Company was organized with an Authorized Capital of $25,000 divided into 250 shares of $100 each. •"> ENTRIES IN BOOKS OF ACCOUNT. Shares were allotted as follows ■ (itior^e Paterson, 60 shares ; Jameit Robertson, 50 shares ; Chnrles G. Kraser, 45 shares ; E. Kaulbach, 40 shares ; R. Schurman, 35 shares ; 20 shares remaininf; unallotted. A first instalment of 30 per cent, was paid on allotment ; a second instalment of 50 per cent, three months later ; and a final InstaU ment of 30 per cent, ut the end of the year. The " Capital Stock " account in the General Ledger was kept in such a way as to show the Ptxid-Vp Capital. Make the required Journal entries. .Answer. In dealinf^ with the accounts of the shareholders in the General Ledger, it is customary to treat them collectively under the ledgertitle " Shareholders," " Subscription," "Subscribers," or some similar name. If preferred, separate ledger accounts may be kept for each shareholder, but as full information respecting; the individual transactions of the stockholders may be found in the Stock Ledger, to do this would be increasing the work of the bookkeeper to no purpose. In order that "Capital Stock " account may show the amount of Paid-Up stock, entries for the foregoing transactions will have to be made as follows : ( I )■ Cash $4,600 To Capital stock $4,600 Fur [Mymmit of HrNt iiiMtalnu-Mt uf *J<) per cent. (2). Cash $11,500. To Capital Stock $j (,500 For payiiimit of wcdtii] iiii4talT)iciit of .'ilt pi-r cvnt. (3). Cash $6,900 To Capital Stock $6,900 For paymttnt <>f third iikstalmciil of ItO plt wM. Another method would be to charge up "Shareholders " account as each call is made, crediting " Capital Stock " for the same amount, then as payments are made charge " Cash " and credit " Shareholders." Exercise 37.— Using the data given in the preceding exercise, but assuming that "Capital Stock" account is to show the Subscribed Capital, make Journal entries required. BOOKKEEPING FOR JOINT STOCK COMPANIES. m Answer. )i). Shareholders (Either collectively or iii> dividually) $33,000 To Capital Stock $33,000 Fnr the ajOfregiiW Mmuuiit of «tli«l anil left iiiiMllottnl rf«p<><'iivi'l>' at thi- tlrat mei'tiiiti <>1 the )tf KrHt iiiNialnicnt of 'J*i pt'r cfiit. (3'. Cash $1 1,500 To Shareholders $1 1 ,500 ¥<•! |HI>IIICIlt ll( HrCIIIKi illHlulMU-Ill nf .HI jht Ittlt. {4). Cash $6.ijoo To Shareholders $6,900 Fill i«yimiit (if tliinl iriNtnlim-iH nf 311 \n-i rent. KxHRcisK 39.— In the forejfoiny question if a month after the third instalment were paid, fifteen of the remaining; shares were subscribed and paid for in cash, what entry would be made ? Answer —Cash $1,500 To Unsubscribed Stock $',500 Fur 1') xliaiT" MiiliHirilKtl nuliHOiiH'iit Id lirst allot mi-iit. When the above entry is posted the difference between the two sides of Unsubscribed Stock wilt show that 5 shares still remain ; as soon as this account balances it shows that stock has been issued up to the full Authorized Capital of the company. KxERCTHE 40.— Taking^ the list of shareholders and subscriptions given in the Stock Book of the Toronto Broom and Brush Company, page 19, make Journal entries therefrom for the following transactions in such BOOKKBBPING FOR JOINT STOCK COMPANIES. f» II way that when po<'- fiipitwl SuH'k Hccount will show !he Auihori/i>il Cupital ot the compHity. KXKRitttic 48. Post the «ittritf«of KxvrciNC 47 10 the Itentfrul LeJ^er Hnd niHke h Trial Hiiliincv. Tr«fufcrrtng Slurci. THl- mvihod of entering; up trmitftrM of nhiirct in the StiK-k LvJ^er from the varioun Hooks of Rocord has already been fiilly vxpliiiiu-d. (See pajfe* 4() to s,\ . It ha^ nUo btfun Nho«n in the fort'iroiii); portion of this chapter that as a rule iho only acLOunts ri-lalin(f to the Company'!* shares that an- opened in the General Led^aT are Capital Stock, Shareholders and sometimes I'nsiibscrihed Stock. None of these are in any way alTected by the transfer of shares from one shareholder to another and consei|iiently no entry need be made in (he BiH>ks ot Accounl. If, however, in opening' up the book ,.,„n lu.ouni i» " I'.pMal .Slock" and iii Ihi, i> in no way aff... -d l„ ,1,, , ..i„ „ u . ni.,| erilrv i» n«c«»»ar;. (*l When I'upilal Mo.< r. |.r, . i.'< .SuLsirilvd ,:,,pical, CouKh alanda dehiu-d for $.,™»i l.|r>x$i.«.. anj .-duj l.i $iH.,. (jo « $(>■ ; ihe difference $rji«., .10x40 hein^ '!„■ ;ni.o.inl rciii.,iniin.- unpaid upon the .lONhares. When ihe 10 >har..s are Ir.in .fcrred u HIaiichard 1 he lorn- paciv will no longer lool< 10 liouifh hi,l t,> ItLuuhaid f.if Ihe pavmenl of the remaininc calls upon these share- 1 .icrefore llie -i40 entry is made as ihc transferor's account is in halan. e. . The same entry would be mide when ihelapital Stock account represents Authorized (.apital as when il represents Subscribed lapital. The unsubscribed portion of the slock does mil enler into the Hueslion of Transfers at all, just Ihe unpaid portion of the subscribed slock. The Journal enlry in Ibis case is therefore .\. Htanchard f 401) To H. r. IJoufh $4,,, fniwiiil Iwlftiit.. 01, n|i,ui.h tiiui-fi.iTi.|l KxERClsE 50. —Journalize the transactions ^'iven in lixercisc J4, P»Ki-' .14. assuming that " (.apital Slock " shows Subscribed Capital, and that a separate accoui.t is to be kept in the tienera! Ledger for each shareholder ; post and take Trial Balance. KxERClsE 51.— Journalize the foregoint; transaction keeping; a collec- tive account for " Shareholders," instead of a separate one for each, in the General l.ed|,'er. Post as before, take Trial Balance and compare the whole work with that of the precedin^r exercise. EXEKCISE 52. - Make Journal entries for pcistin^ to tiener.d Ledger for the transfers shown on Register cf Transfers, pajfe 48. assuming that B8 ENTRIES IN BOOKS OF ACCOUNT. separate accounts are tii bo kept lor c;ich shareholder anJ that Capital Stock fL-present Subscribtjd Capital. ExERcisK 5?, —Refer to Share Led{,'er "A ", paj;c 50, and journal- ize the items shown in the column ci particulars, post same to General Ledger and compare carefully the account of D. Hoskins therein with that ^'iven in the aforesaid Share Ledjjer. KxKHiisE 54. Refer to Share Ledfjer " B ", pn^c -^2, and journal- ize the items in " Particulars " columns, post to (ieneral l,edtfer and com- pare carefully the account of C. R. McCulIoufj-T with Share Ledger accounts for same transactions on pajjes 52 and i.v ExERiiSK 55.— Keeping,' a collective account for Shareholders instead of separate ones for each, and dealinjj with t - >■ 1 Stock so that it will show Paid Up Capital only, make Journal entries required for trans- actions in Hxercise _*4, paj;e 54. When completed compare with your entries for Kxereises 50 and 51. Dividends. - Th-»t part of a company's prolits which is set apart by resolution of the directors for division among- the stockholders is called a Dividend. That dividends should n \er be paid except out of accumulated profits is made clear by Section 83 of the Ontario Com- panies Act which reads as follows : -'The dnectors of the company shall not declare or pay any dividend when the company is insolvent, or any dividend the payment of which renders the company insolvent, or diminishes the capita' thereof." Dividends are jjeneratly payable in cash aIthouf,'-h it freiiuently happens that a company has had a prosperous business year but has used its surplus profits in purchasiiij; additional plant or material, thus increasintj the value of the capital of the concern. In such cases it is quite common to declare a S/ocJi Dividend^ that is, a dividend consisliny^ of shares in the company up to the amount of the surplus profits set aside for this purpose. Whtii a Citsh Dividend is declared the Dividend Hook is written up as sh-'wn on paj^'e 55, and th- following Journal entry made : Loss iV Gain Ac . . - . S*>4oo To Dividend No. 3 $6400 DIviilcnd of 8;, lecltuetl ii|mi] $S(XHMt nioik. J'rohably whore there are a numuer of shareholders it is the best plan to draw one cheque for the total amount oi the dividend and place BOOKKEEPING FOR JOINT STOCK CCMAPANIES. 67 this amount to the credit of iin account in the bank called " Co., Limited, (Dividend Account)." The individual cheques, therefore will be marked and charged to this special account. One ^reat advantage of this method is thiit it avoids unnecessary outstanding cheques in the ordinary current bank account. When cheques are issued to the shareholders for the amounts due them the following entry is mad'.' : nividend No. _v ■ ■ Sf»40o To Cash (or Bank) $t).^oo ClitijiieH ixMiK-il til xlmrcliolilerH per Oividfiiil Ifcmk, (lugc .m. Another method, sometimes employed, is to credit the individual shareholders instead of "Cash" in the foregoing eiitrv, and then to charge them up separately when the cheques are issued. When a S/otA Dhtdenii is declared the first entry ii the same as in the case of a Cash Dividend, namely, Loss iV Gain $6400 To Dividend No. t, $6400 F.iraMork Hivi.i.-n.l i.f H ,l.rl,iri-.i KmUv. Then when the shares are issued the following entr\ is made : Dividend No. j, $64cx) To Capital Stock $6400 K.ir sliiiit'i. JMsiiwl tn stf Rt'^u.■rv(- animnl l<> [^s uiki' Ciuin a.v.iiini. >Hfri Supposing the company desires to set aside $900 as a Reserve for Bad Debts the entry to be made would be : Loss and tiain $i>x). To Reserve for Bad Debts . .$900. ^ t anidf aliiivr amount to nlF-sct p«»88ible lm>l dflitn. We will now assume that during the ensuing year the losses through bad debts were as follows : James Brown owed $400 and paid (xj per cent, ; loss $160. John Scott " $500 " 40 " ; " $300. The following entries would be madi^ at the time the respective settlements were made : Cash .$240. Bad Debts $160. To James Brown mpn.r iiii.rii ^ \tn Cash $200. Bad Debts $.100. To John Scott $500. foHiprotnised with John Scuti at 40 ceiite en the dollar. BCXMCKEEPING FOR K^NT STOCK COMPANIES. ftO The account "Bad Debts" would thus show ii total dehit iif $460. If theru were no Reserve for Bad Debts, the " Had Debts " account would be closed directly into Loss and tiain, but the company have $900 M the credit of " Reserve for Bad Debts/' The following entry would, there- fore, be made ; Reserve for Bad Debts $460. To Bad Debts $4<^»- Tiai.»f.ulH..ieiit to (.tf-Hi^^t tlif li.ss.i-. from Itii-l DelilH fill* {Mitt yt'iir. This would close the Bad Debts account and leave $540 still at the credit of the Reserve account. If the losses from this source durin^j the year had been $1,200, which is greater than the whole amount reserved by $300, the entry would have been : Reserve for Bad Debts $Qoo. To Had Debts Syoo. Tirtiisfeired Reserve fi.r H«il l>tl>ts t>i Itail lldK^ n^inmt. This would leave " Bad Debts " will a debit excess of $300 which would be closed into Loss and Gain in the usual way. Some prefer to charge the losses from this source directly to " Reserve for Bad Debts," but most accountants favor the method here explained. Bonuses. Sometimes a company decides to set aside a certain pro- portion of its profits to be distributed among: its employees as a ffift ; occasionally a special allowance is made to shareholders in addition to the customarv dividend ; in either case the entries in the books would be similar to those for a dividend, except that they pass throuffh a "Bonus" account instead of a " Dividend " account. When the Bonn-^ is set aside the entry is Loss and tiain , I'o Bonus Acct and when paid Bonus Acct To Cash KxEKCisE 5'S.— Refer to the Dividend sheet required by F.xercise ^^o, and make the necessary Journal entries for the declaration and payment of ihe dividend. •" ENTRIES IN BOOKS OF ACCOUNT. EsBKilsi! 57. -Refer to the Dividend sheet rei|uired by KxercJM' .)i and make the necessary entries for the deelaration and payment of the dividend. KxERi isii 58. - Refer tu the Dividend sheet shown i>n pa^e ^s. ;'iid make entries for the declaration and payment of the dividend. KxKRcisK 59. Refer to the .\pplicalion and .Mlolment hook shown on pag;e4i, and usinj; the list of shareholders there Kiven make necessary entries for the declaration and p.ayment of a St.>ck Dividend of in per KxERiisE (10. Takintf the list of shareholders jjiien in l-:xercise 5, pane 42, prepare Dividend sheet and make entries for the declaration and payment of a Stock Dividend of 10 per cent. ExERclsi-: l>r. The Toronto Broom and Brush Co., Limited, ends its first business > ear with a Net Profit of $jothin); for possible bad debts in the ensiiini; year, a company's Revenue account showed a Net Profit of $9000. It was decided to set aside$i jooas a Rjserve for Bad Debts, and $500 as a special Bonus, afterwhich a Cash Dividend oft) per cent, and a Stock Dividend of 5 per cent, were declared on a Paid Ip Capital of Stxxxj. The cheques and stock certificates were issued in due course. Make the required Jou.-nal entries. hxiiKtisEt),v - The forejfoinjj company i,) its next business veai in- curred the following losses throu^fh Bad Debts : Note against Geo. Green for $.550 . . . Settled at jo of its face. Note against \V. Stewart " $!ho.. . . Settled al 40 of its lace. .\ccount ■' Ihos. Brown •■ $450 .. Settled at 60 cents on the $. Show entries m.ide .it the time o( settlement, also those made at the end of the year previous to making the Company's annual financial statement. BOOKKEEPING FOR JOINT STOCK COMPANIES. 71 Org;anization Account. Preliminary Expense Account. Wlien a new i;i>mpany is orj,-^;!!!!/!.'*] rhere are usually a ^roat inaiiv expenses of a kind not likely to oct iir a^'ain. si-c)i as promoters' expenses, law fees, cost ol charter, etc. In large concerns, such us Fire and Life Insurance companies, ;ind quite frequently in mercantile or manufactnrinj,-- compan- ies, th*'se expenses are usually so fjreat as In make it absolutely unfair to charge them all agiiinsi ihe business of the first year. This is overcome hy opening m special ;*ccount ..illeO either "Organization" account or " Preliminary Expense " accvMjm, ijfainst which all items of this nature are charged, and, instead of treatin^f th« whole expense as a los> to the business for the current year it is spread over a number of years \arying according to the amount of the account and the nature of the business- To illustrate : Suppose that in the organization oi .i large manufacturing company the expenses of this nature amounted altogether to $3,000, of which $800 consisted of cash and the remaining Si, 200 of slock issued to promoters in payment of .services rendered, the entry in the books should be Orgitnizatinn Account Sj.ooo To Cash S Soo " Capital Stock i.joo At the end of lhi> \ liir instead of closing Organ!/ 'ion iicciiunt into Ia»ss and Gain like the ordinary Expense account oiiiv a portion of it is considered a loss and the balance is carried forward as an Asset to the following year. For instance, if the directors of the above company consider it advisable to spread the S^.f-oo ovci a period of four \ears, a Journal entry would be made at the end of each of the four ^oars .is follows : Loss and Gain $SOO To Organi/alioii Account f^tn) This would appear in the Revenue Account as an expense of S500 in each of the four years. At the end of the firsr year the Balance Sheet would show Orgatii/alion Account ai an Asset of $1,500; at the end of the second vear Si. 000; at the end of the third $500; and at the end of the fourth it would have entirely disappeared. hi the same way '• C.ood Will " or any other asset of an inLingihle or fictitious nature may be written off. if the directors deem it .Khiviihle. The last-named account is quite frequently left on the books of a limited :-• ENTRIES IN BOOKS OF ACCOUNT. company at its original amount, which, of course, should be its cost to Iho company. Impairment of Capital Account.— The business of a Joint Stock Company, like that of an unincorporateU concern, is Hable at the end of the financial year to show a Loss instead of a Gain. If the company has a Reserve account this is readily adjusted by transferrin},' a sufficient aniotint from the Reserve to the Loss and Gain account as explained on pa^'e (r>H. But if no Reserve account -exists the balance of the Loss and Gain account may be carried below the ruling- to the Debit side as a first char^fc ajfainst next year's profits, or it may be carried to a special acciiunt for the purpose, called " Impairment of Capital," or any otiier suitable name. N'o dividends should ho declared until the Losses indicated by this account have been wiped out b} subsequent profits or b> an Assessment upon the Shareholders. .\n .Assessment would not he made unless the compan> was really handicapped for cash, Suatoosinjf a company to have lost durinfj the year Sf>,ooo, its Loss and liiiin account will likely show a lar^-o debit balance. If instead of larryinj^r the balance below the ruling- it has been decided to open an " lmp;iirment of Ci^ital " account the entry would be ItnfKtirm^nt of Capital $ To Loss and Gain $ rnlorUMuteh such an account is seldom allowed to appear on the balun.^ shaasr of a company, but is generally covered up by an inflation of t^> Vs-HSW. k-r in -Hime other way. I'lxERcisfc f>4- T- !■ Watson Grocery Company is incorporated with an -Authorized Capital of $50,000.00 divided inta 1,000 shares of $50.00 each. T, I-'. Watson subscribes and pays for 400 shares and is ffiven -^o shares for his services as Promoter, The other subscribers pay cash in full of their subscriptions as follows : .Adam Brown, 80 shares ; Charles Dewar, 75 shares ; Kdward Frame, 130 shares ; Georjje Hamil- ton, 90 shares-; ; Isaac Jones, 60 shares; and Kenneth Lon^ 40 shares. At the end of the year the books of the company show a .*Jet Profit of jK.ooo.cjo. The directors decide to write $2,000.00 off the Or^'anization accoi. ii. to declare a dividend of 10 por cent, on the paid-up capital and to c;u I \ the balance of the profits to Reserve account. {11) Make Jour- BOOKKEEPING FOR JOINT STOCK COMPANIES. ::» nal entries at the commencement and at the close of the year. (Al II the Co.np:my had lost $10,000.00 durinjr the Hrst year how- should this have b.'e:i dealt with in the books at the end of mat period ? Conveniofi of * Partncfshlp into a Joint Stock Company. A \ er% large proportion of the m "»re important business concerns of Canada are nom Li'iiJiicted as Joint Stock Companies. We have already pointed out in the first chapter some of the reasons which have prompted busi- ness men to make the chanjje ; we shall now deal witli the problem which confrollt^ the bookkeeper who has charge of the accounts at the time the Compiinv n incorporated. The explanations given in connection with the exercis«^ which follow should be sufficient to enable the average student lo do such work without difficulty KxKHt isE "s-— W. J Ross and H. T. Gough are partners in a lum- ber business. Ross havmg a 3 5 interest and Gough J 5. Their Assets consist ot Plant $8.noo, Lumber $JO,ooo and Bills Receivable S*i.iXX) ; their Liabilities are Bills Payable ?7.ooo and Accounts Payable *8oo. The business is incorporated as a Joint Stock Company inder the name of the New Ontario Lumber Company, Limited, with an authorized capital of $50,000, of which it is agreed that $30,000 fully paid up stock shall be given to Ross and Gough for the net assets and good will of their business. The others pay cash in full of their subscriptions as follows : D. Hoskins $7..Soo W. J. Osborne .!.«» R. Schurman 5,000 . Hoskins 7i5oo \V. J. Osborne ,(,ooo R. Schurman $5.txx> "Co Capital Stock . $45.. v« l',.r V.tln. ,,t st.«l«.ilt..tr.-.!. Or Shiireholders $45,500 To Cnpital Stock $45,300 (-") fash $15,500 To I>. Hoskins 7.500 " W. J. Osborne .1.000 ■' K. Schurmiin 5, •■ Accounts Payable (mentioned scparalety) Soo " Ross 18.000 " Ooufjh , j.f.K,o ,\^.ia.-l.iki'i, nvn-iiiiil I,ial.ilitJi's,.~si,nu'-LI.» tii,- r.m.pmv .,■, ,mivhj».uui lli,- Kii-i- lu->.«..f Hi'^'^ft liuiluh. Insiead ot crediting Ross and Uou^'h separately, " Sha.eholdcrs " \vi>iild be credited for $jo,ooo if the collective account had been used in the other entries. The three fore^foinjf entries, when posted to the General Ledger, will leave the various Assets (includinff Good Will) debited tor $53, _^oo, the Liabilities credited tor 87,800. and ihe Capital Stock account credited for $45,500. Stock certificates would he issued to each of the shareholders for their respective subscriptions, and the "' BNTRDB IN BCXMU OF ACCOUNT. Stock Ledger immediately written up in the manner already de.cribed in the preceding ptlfeN. KXK»CI,E «,. - If in Exercise (.5 the New Ontario l.umher C omp«n> , Limited, had decided to continue u.mg the old (Irms Books ol Account, instead of opening new ones, what Journal eiilrie« should have heeii made at the time of incorpc ration ? ANsuBR.-The lirm's Balance Sheet precious to incorporation stood us follows : PI""' SS,ooo Lumber 10,000 Bills Receivable 6,000 S,t4,ooo Liiibititi^s. Bills Payable $7,000 Accounts Payable 800 W. J. Ross (Capital) . . 15,710 H. T. Cough (Capital) 10,480 $.14,000 The new company, in purchasinfr the business from Ross & Gough, paid $3,%xj more for it than the face value of the Net Assets, as staled in the above Balance Sheet. This extra amount is charged ajfainst tiood Will and must henceforth be treated as an asset on the Company's books. After the transfer of the business has been made and stock certificates issued, the Halnnce Sheet of the new concern should stand as follows : ,|M. Is. Cash Received from Shareholdc-s) .... $15. .500 Plant «,ooo Lumber iMibilitifs. Bills Payable $7,u<« Accounts Payable . ... 800 Capital Stock 4.v.vx) 20,000 Bills Receivable 6,000 Good Will 3,Soo I53..I00 The following Journal entries when posted to the ledger from which the flrst Balance Sheet «.is prepared will ^'ive the results shown in the second one : (') lioodWill s.,,8o<, To W. J. R,.s!, 3 5 of value) $2,2»o •■ H. T. Gough, 2 .^ " 1,520 •^ '"" «ll"»«.l Hum f..r (;,«„l Hill „f l„ „. BOOKICEEPING FOR JOINT STOCK COMPANIES. 77 This entry when polled Umvch Ross credited for a loiat of fiK.ooH Nnd Goutfh Tor $i i.cMMi. (i) W. J. Ro»« SiH.ooo H, T. tioujfh i-,oix> To Capital Stotrk. $ V'.ooo Kur »\n\Ti-n nllotteil in Mtllririftil uf piinli.iHi- .■( t>ii hh. (.0 ChhH Si5.5i>«> I. Capital Stik-k $i5.Sf« K<-.',-ni'.| r<.r »l.,u.w ...1.1 (u ..lli.-r NulwrJL'r.. In the LvUf^er a'l account!, Hhvnild be halunved at the date ol taking; over the business, carrying,' the halanco forward and re-hcadinK the Kccoutits ; then write or stamp iho name of the new ki^mpany on the left-hand sidi.- of the new heading'. KxeRiish ft;. - VV. Brooks and J. \V. WitfK''"' 'irc equid partners in a Boot nnd Shoe business. They or^'unize the Royal City Boot and Shoe Mfjf. Co. with an Authorized Capital oi $4o,ihk>. divided into 400 shares of Sioo each, and transfer their business to the new concern for Sjo.ckj fully paid-up stock. The other shareholders are to pay i heir subscriptions in three instalments of 50" , 30", and jo^', respecti\elv. The Stock List is »s follows : W.Brooks $10,000 J. W. \Vi(,'(,'ins 10.000 T. K. \Vrit;hl 5,000 R. Schurniiui 4,000 W. J. Osborne ,^,000 n. Hoskins 6,o(x) Total $,iH,(xw The firm's affairs stood as follows ; Assets Plant, $9,000 ; (ioods, $8,000 ; Sundry Debtors. $i,(XK> ; Notes Receivable, $7,1x10 , Liabili- ties \otes Payable, $H.fKX) ; Sundry Creditors. $i,(xxi; W. Brooks (Capital), $8200: J. \V. Wi^'jiins Capital). $H,2oo. Supposing' the same Books of Account are to be used by the new company, what Jour- nal entries would be necessary at the time of transferrin},' the business and BubsequeTilly when the instalments are paid ? Exercise 68. - If the above-mentioned Royal City Boot and Shoe Company opened an entire!\ new set of books, what Journal entries would be made at the time of the transfer and what entries subsequently when the instalments are paid ? MICROCOPY RiSOlUTION TEST CHART .ANSI and ISO TEST CHAPI No 3i 1.0 I.I 1^ 1^ ^ II 1:25 |U III,, 1.8 APPLIED IN/MBE Inc " ENTRIES IN BOOKS OP ACCOUNT. EXERCSE 69. -N«w books havin,. b„e„ opened for the above com- pany »ha. en.rie., should be made ,0 close ,he books of.helirmof Brooks and Wiggins ■' EXE»C,SE 70. -C. R. McCullout-h and J. VV. VVes.ervel. are par,, ner, ,„ the printing business, sharing gains and losses ecuallv. Their affairs stand as follows : ■■'"'•'•'■ iMhnuics. pj'^'^J'l *^'<'°" «ill» I'ayable $r,,ooo _.^°„ '•°°° Creditors on Open Acct . 2,000 B.lls Receivable ^.^^ C R. McCullough (Capital) 6,900 „.'■,■ '^ J- W. Westervelt Capital) 2,300 HookDebts ^^^^ ^^'7''°° $17,200 They convert their business into a Joint Stock Companv incorpor- ated „,th an authorised capital of *25,ooo, under the name of the Went- worth PrmtingCo., Limited. The other subscribers are, D. Hoskin, $,vOoo, R. Schurman $4,000, and T. F. Wright $2,000, who pav cash in full ol the.r subscriptions. It is agreed that the Plant be taken over at a valuation of $8,500, the Goods at S500 and the Notes and Hook Debts at ,0 per cent, di.scounl. .VIcCullough and Westervelt take lully paid up shares in settlement of their respective interests, cash being paid them in lieu of the fractional portion of a share. .Make opening entries in the company'.s new books. -v.vswEK. In answering the aboie question, enter up Plant and (ioods at exactly what they cost the company. Bills Receivable and Book Debts are rarely ever considered worth ,00 per cent, but ne> erthe- less, PUIS, appear in the book.s at their face value. The discount spoken of in the question is not deducted from the debit side of the several accou ,ts but is sat aside as a ■• Reserve " against which to charge anv losses that might occur from this source. It should not be entered to the cedlt of Los, and Gain, as that would make it appear tha. the com- pany had realized a profit equal to 10 per cent, of the face of the Notes and .\ccounts Receivable, which i, not necessarily the case. Such deductions from accounts or notes should ahvav s be considered as a Reserve to offset possible losses in realizing. Observe also that the BOOKKEEPING FOR JOINT STOCK COMPANIES. 79 partner-, sliare trains and losses equally. It will be seen that tlie Assets which are listed at $17,200 brinjf only $15,150, thus resulting,' in a loss of $2,060 to the firm of MeCullou^h \- Westervelt. This beinj,' shared equally reduces the capital of McCulIough to $5,S7o. and the capita! of Westervelt to $1,270. McCulloujjh will therefore j,'*-'! *5.8oo stock and $70 cash while Westervelt will {-et $1200 stock ruid S70 cash. The en- tries to be made are as follows, <0 Cash $2,000 Plant s,50o Goods coo Bills Receivable 3.4t.H> Book Debts (mentioned separately)... 1,200 To Reserve for Bad Debts $ 460 " Bills Payable 6,000 " Creditors (mentionedseparatelv) 2,000 " McCullough 5.870 " Westervelt. 1,270 (2) McCutloujfh $5.H7o Westervelt $1,270 To Cash $ 140 " Capital Stock ...... 7,000 3) Cash $11,000 To Capital Stock ..? 11,000 It is not necessary to introduce the names of other Shareholders into the General Ledger althoutjh this may be done if desired as explained in the precedinj^; pages. Exercise 71. -Write up the General Ledger of the firm of McCul- lough and Westervelt using therein the accounts as stated in the balance sheet given in Exercise 70. The company having decided to use new hooks make necessary Journal and Ledger entries to record the transfer and close the old books. Exercise 72. - Again write up the General Ledger of the firm of McCullough and Westervelt from the balance sheet -in Exercise 70. Assuming that the company has decided to use this Ledger instead of purchasing a new one, make necessary Journal entries, post and take a trial balance. m ENTRIES IN BCXJKS OF ACCOUNT. - VVrile up the Str>ck l.edn^r of Ihv company „»,ng any «„„ of .he three forms explained i„ I'hap.er 111. EXEROSE 74. During- .he Hrs. business year after ,he or^ani^a- Mon of .he „,„resaid con.pany Hoskin, .ransfers $,c^ s.oek a. $,„ per ^liHre .„ R, Sehurman. Write up corree. ,V,rn, of .ransfer and ae'cept- '"'<:■.• and make necessary entries in all .he company's books usint; .he same ones t.s you l,.,ve written up in answers to Exereises ;. and 7,,. Ainaljamation o{ Compa„i„. -^Duri„K .he pas. few years there has peenno. only an unprecedented incrtsr, i„ the number of Companies ..corporated, bu, a .-rowi,,,. tendency on ,he par. of .hose companies to afterwards nni.e their forces by amalpnna.ing under one .orpora.e name As ,. ,s nnportant that .he s.uden. should know the procedure governing, such amal,;an,alion» we here c|uole that portion of .he Ontario Companies' Act which de.ds with the matter. •• Section ,0,,. ,, .Vnv two or more companies meorporated under the laws of this I'rovinee and havin.. ob. iscs within the .scope of this .Act ,nay, in the manner herein provided mute amals:ama.e and consolidate their stoek, proper.v. businesses and' franchises, and may enter into all contracts and .agreements therewith necessary to such union and amalj;amation. ■•(..) The directors ol the companies proposin,; to so amalgamate .>r consolidate as aforesaid, may enter i„.o a join, agreemen., to be executed under the corporate seal of each of the said companies, for the amals-amat.onandeon.solidationofthe said companies, prescribing the terms and conditions .hereof, ,he mode of carrying' .he same in.o effec, the name of .he new con.pany, of whiel, the last word shall be the word ■ l.m„ted ■, the number of .he direc.ors .hereof, and who shall be .he firsi d.recors .hereof and their places of residence, the number of shares of the capital stock, the amount of par v.tlue of each share, and the m ,„ner of converting the capital stock of each of the said corporations into that of the new corporation, „nd how, and when directors of the new corpora- tion shall be elected, with such other details as they deem necessary to perfect the new organisation and the consolidation and amalgamation of the said companies, and the after managemera ,u,d working thereof. " (31 The agreement shall be subntitted to the shareholders of each of the said companies at a meeting thereof called in accordance with the by-laws and held separately for the purpose of taking the same into con. siueratinn. BOOKKEEPING TOR JOINT STOCK COMPANIES. »l " (4) At such meetings of shareholders, the a|;reement shall be con- sidered and a vote taken for the adoption or rejection of the same, and each share shall entitle the holder thereof to one vote, and the ballots shall be cast in person or by proxy ; and if two-thirds of the votes of all the shareholders of each of such companies are for the adoption of the agreement, then that fact shall be certified upon the agreement by the secretary of each of such companies under the corporate seal thereof ; and if the agreement is so adopted at the respective meetinKs of l^ aid companies, the companies by their joint petition may. through the Pro- vincial Secretary, apply to the I.ieutenant-Covcrnor in Council for letters patent confirming,' the said agreement. "(,s) With their joint petition, the companies shall deposit %vilh the Provincial .Secretary, an original of the agreement, and shall furnish such further and other documents and evidence in this behalf as the Provincial Secretary may require, and the l.ieutenanl-fiovernor in Council may by letters patent confirm such agreement, and on and from the date of the letters patent, confirming the said agreement, and from such date only, the said companies shall be deemed and taken to be amalgamated and consolidated and to form one company b- the name in the said agree- men' J letters patent provided, and the consolidated coiT.pany shall poss all the properties real, personal and mixed, rights, privileges, and franchises and be subject to all the liabilities, contracts, disabilities and duties of each of the companies consolidated." Exercise 75. The Blackman Bread Co., Limited, and the Robert- son Bread Co., Limited, both of Toronto, amalgp.mat? under the name of the Metropolitan Bread Co.. Limited. The assets and liabilities of both companies are taken over according to the subjoined statements and shares of the new company's stock issued to the shareholders in place of the old shares held by them which are .low surrendered. The Blackman Co.'s balance sheet stands as follows ; Plant S6.000 (•oods 2,000 t'ash JOG ^*a50^ Litihilitivs. Notes Payable Capital jitock $2,000 6,500 $8,500 ENTRIES IN BOOKS OF ACCOUNT. The Robertson Company's bai..iice sheet is as follows Plant.. tiooUs Cash . Uiihilitiis. $j,oot> " ShareholJers Mlacknian IJreaU Co.. <».50o The above entry brinjis into the books of the new company the assets and liabilities of the old company and credits the Blackman Co. lor th ■ amount due tliem in sh;'rcs according to aj;recment. (2) Plant .. (ioods Cash . . S'J.OOO To Accts. Payable {Mentioned Separately) * 800 " Hills Payable 3.000 " Shareholders of the Robertson Hread Co. . . . 7,600 The above entry brinf,'s into the new books the .issets and liabilities of the Robertson ^\.->. and credits the shareholders thereof wi«h the amount due tliem in stock from the new concern. (3) Shareholders of the Blackman Co $6,500 " " Robertson Co 7,rx)o To Capital Stock $14,100 l--.ir-haiv-,.f Ih.- Mctni|".Ilti.n Hrxwl 0..., Liliiitv,!. i^Mir.l 1^. ll.i- sliFirrlioM.Tsuf f iirii;ili;.iiinito " Cash .^,o [■-n t,ati-f..|-.,f l..,-in.-si„M,.,i ,!it,iri i\,. ;ii ,,n,..- .ip,.,-,l u|Hm. (j) Capital Slotk $(>,.Vx> To Metropolitan Mreail to., I.imitL-d f'l.^oo (■'..r rr,t,..ii|>li..„ 1,^ M,.iin|.,,lii„ii C... .,f stnik -■.■Mili.Mt.- h.l,) l,v .har.lii.l.l.-isuf la.ikt.ia,, r„. «U" lmv.■l■.■.■ri^.■.i,lM1r, i.f Mrt rujM.litmi -l.H-k Jii-t.,!.!.' l-iitrios to i:lose tlic Robertson i\\\ hooks would he made in the same \\a\. I'.XKKiJsK 77. It" in Iht above amaltramation the shareholders of the Hlaekman Co. had been ^nven $7,800 stoek lor their business, what effect would that ha\e i.poii the entries 10 be made In the books of the new concern ? Answer.— The entries would he exactly the same as j^iven in Exer- cise 75, except that ** liood Will Si,.^o;i" would appear amon^^ the assets brouffht into the concerii and the shareholders of the Blacknian Co. w oiild he credited for tin-, additional amonnl. The lirst entry would I hen read as follows : l'l;iiil $6.o(K> Ctooiis 2,000 Cash -00 (lood Will.. 1 , ^o,, To Bills Payable 82,000 " Shareholders of Blackman Co 7,Soo In the entry for the issue oi' the new stock, the Blackman Co., would be debited and Capital Stock credited for $[,300 more than in ICxercise 75, M ENTRIES IN BOOKS OF ACCOUNT. Preference Stock. Prcfcreiwc Stock is stock which takes priority over the ordiiuiry stock of h company to the extent set forth in it« Letters Patent of Incorpofittion or in the special By-law passeJ for this purpose. The preference inav consist of a stated rate per cent, dividend to be p.iid to holders of snch stock before any dr idends are paid to the holders of ordinary shares or it may carry with it almost any other special advantafje which the Directors of the Company or the original Incorporators may have desired to attach to it. Preferred Stock is said to be Cumulative whei: in case of a shorta^'e in dividends in any one year the deficit is payable out of the profits of the followint; years before a dividend can be declared on the Common stock. For an excellent example of shares of this nature the student is recommended to read carefullv the conditions of the issue of the stock of the Wm. A. Roofers Co., Limited, asset forth in the President's letter which forms part of their I'rospectus. (See paj;e it.) When the rijjht to issue Preference Stock has not been jfiven in the Letters Patent, companies incorporated under the Ontario Companies' Act must proceed according; to the requirements of that Act as 'aid do\v>. in Section 22 which reads as follows : " ( I ) The directors may make a by-law for creatinj; and issuin^^ any part of the capital stock as preference stock, ^nviu^f the same such pref- erence and priority as respects dividends and otherwise over ordinary stock as may be declared by the by-law. " (2) The by-law may provide that the holders of the shares of such preference stock shall have the ri^jht to select a certain stated portion of the board of directors, or may ^'iv.' them such other co'..rol over the affairs of the company as may be considered expedient. " (i) \o such h)-law shall have any force or effect whatever until after it has been un^^nimously sanctioned by a vote of the shareholders present in person, o hy proxy, at a general meeting of the company ; provided, however, that if the by-law be sanctioned by three-fourths in value of the shareholders of the company, the company may, through the Provincial Secretary, petition the Lieutenant-Governor in Council for an order approving the said by-law, and the Lieutenant-Governor may BOOKKEEPING FOR JOINT STOCK COMPANIES. M if he sees fit, approve rhereof, Hnd from the date of Nuch approval the by-law shall be v- lit] and may be acted upon. " (4 Holders of shares of such preference stock shall be shareholders within the meaninj; of this Act, and shall in all respects possess the ritfhts and be subject to liabilities uf shareholders wtthin the mritiin^ of thiii Act, provided, however, that i-' respect of dividends -ind otherwise, they shall be, aj^'ainst the ordinary shareholders, entitled u the preference and ri^'hts yiven by such by-law. " (5) Nothing in this section contained or done in pursuance thereof shall affect or impair the ri^'hts of creditors of the company." The entries made in the hooks of the company are exactly similar to those made for the issue of ordinary shares except that two separate parts o( the Capital Stock account must be kept, one for the Common stock, and one for the Preferred stock. For example, if a company paid for a Patent $^5,000. of which $5,fxx> was Preferred Stock and the rest Common, the Journal entry would be made as follows : Patent $_'5,cxx) To Capital Stock Preferred; 85,000 " " " (Common) 20,000 In the Stock Ledfjer the accounts of Prelerence shareholders must be kepi distinct from those of Ordinary shareholders, and the preference stock certificates should slate clearly the conditions of the preference. KxEHciSE 78.— The Har>,'rave Manufacturing Co., I.imited, and the McCort Manufacturing Co., Limited, both of Toronto amaljjamate under the nameof the Hargrave, McCort Manufacturing Co., Limited, with a share capital of $500,000 divided into 5000 shares of $100 each, $300,000 being Preference Stock entitled to Preferential Cumulative Dividends of 7 per cent, per annum, and the remainder consistin)^^ of Ordinary Stock. It is agreed that $200,000 Preference Stock and $100,000 Ordinary Stock shall be given for the Margrave Company's business, ,-.nd $100,000 Preference Stock for the McCort Company's business. $5000 Ordinary Stock is voted to J. H. Hargrave in consideration of his services in bring, mg about the amalgamation. The rest of the Common Stock is sold on "« ENTRIES IN BOOKS OF ACCOUNT. the iiiiirki'l al piir lor kasli. TIk' KiIiuul- ^ll^,■^,■t•4 ol' the \\\o loinpani»fs fiiifiitur S/hy/ of fhv Utiii^rnvt CompoHV, l.imih'd. .Usi-ts, /.iiihihnis. [litis I'iiviibk' $7 oo(> j Cash MurtKii^t* Piijable. . . . i(.,tMX> III I. AlltucJ oil Mkirt- k'i'k'^" -ii'*' Capital Suvli J5u.<> ||t>,(N]l> Hook DebtM . $H,uoo Bills Roi- .... jD.ooo $.'.7,jt« Loss It) pnn is. tor Had Debts 2,8tx) Goojs oil hiiiRl . Mt),.iKX' l-iiihi/ifhs Hills Pa>abU' I.i>ss X' ttain t'r Capital Stock IMiime S/„;-/ ,-t t/if Afcl'orf C»mf>,nty. Linii/n/. . I.v.v.'A. $5,IXX) io«,ooo Cash KiHik ilobts Hills Rl'c Inl aa- rued on Hills Kec. M.tchinerv, otf Goods on hand $S,o,. 5,0,ooo 1(>. ooo Mako till? required Journal entries and open the books of the L'W KXKKilsE 7<).-- Post th.' above Journal entries to Ledjfer and take off :i Halance Sheet showin^j the present eondit'on of the new concern. EvcKRCisK 8i-itr tli. iKt protils ot Div H.-irj,'r;ivo. Mcl\'rlC\>., Limited, wcro $i'i,(xxi ; '.lif. iiniijimt w:is paid «s ii dividend to iht,' hiildcn* of ihv IVcl'tfrtfiKi' shiircjt who***; ccrtiluittvH it will btf rt'iiictnhtTvd etitillcd ihcm to u Cumulative Dividend of 7 percent. \i the end of the ^eioiul je.ir the net profits were $jM,ooo, ^ind at the end Lif tne t' [--d jear SiS,tHH>, hoth of which .imount> ucre distributed as* divid.-nd . Show the ledjjer entriis htr the dtcliiralion and payment of eaiti divitletid. I'lxiiRiisi' S^. The following' four limited companies am;d^'a^lale under the name of the Ontario Tohacco Coiiipany, Limited, with an Authorized Capital of $1,000,000, coiiHistinj; of h.ooo shares of $m<> each of 7 per ecnt. fumulaii\e Preference Stock and 4,000 shares of Ordinary Slock i>f$K>o each. 'Die sii ijjined statement shows the Capi- talization and Assets o. each concern aiid also the amount of Creferenee S'ock (;iven in selllemiMit by the new Company lo the shii:ehoMers of the old companies. Ktfty shares of Preference Stock and Hxi shaies of Common Stock arc ^jiven to \V. IL Steele for , s services in promotitl^' the consolidation. The remainder o'the Oidinarv Stock was sold for cash at par. (■a|.il.ilSi...k .... Cii-h c;.K«i.i ■'Uiit l'E..lVr.-ii,',' ^;io. k >n^ T.'.INNt I ."|lt,H Make Journal entries for opening' up the books ottlic new company. FxKRLiSE H4. The profits of the abo\c mentioned Ontario Tobacco Company, for the (irst year after the consolidation ainounted to $<)o,ooo ; afli.--- pay inf^: dividends on Preferred Slock, the balance was distributed a.s a profit on Ordinary Stock. Make journal entries both for declaration and payment of dividends. w BNTRIHS IN BOOKS Of ACCOUNT. KxhRi'iMK85. ■^roviJin^rthe prnlilH in the forcffoin^r qutf-»lion haj amounted to SjS.txw, whiit entrit-'-* <«hautU huve been made (* IncrcMc or DccrcAic of CftpltAl Stock. Any .il>i.THttt>ii in ihv iimount of Ihe Authorized fnpilal of lompanicx workiiijf undi-r an Ontario charier must be made in accordaiii:tf with the requirements of Sections 17 and ji ot T/if Ontiirio Compiinu-s' .li/, which are quoted below : " Section 17. (1) The company at any time alter nine-tenths of the Capital Stock of the company has been subscribed and ten per centum thereon paid in, but not ^ooner, may, by by-law lit}, nrovide for the increase of the Capital Slock of the company lo any amount which it considers requisite for the due carryinjf out of the undertakinj; of the company. li) The by-law shall declare the number and value of the shares o." the new stock, and may prescribe the manner in which the same are lo be allotted ; otherwise, the control of such allotment shall vest absolutely in the directors." "Section iH,— (1) The company, if it seea fit at any time, may, by the by-law, provide for the decrease of the Capital Stock of the company to any amount which it may consider sufficient for the due carrying' out of the undertakinjf of the company and advisable. (21 The by-law shall declare the number and value of the shares of the stock as so decreased ; and the allotment thereof, or the rule or ru!e» \yy which the same is to be made. '3) The liability of the shareholders to persons who are. at the time the stock is decreased, creditors of the company, shall remain as thoujjh the stock had not been decreased. " Section 19. — (1) The company may at anv time, by by-law, provide for the re-division of the existing,' shares into shares of smaller or hirffcr amount. "Section 20. — No by-law for increasing; or decreasinjf the Capital SU'ck of the company or re-dividin^.'- the shares, shall have any force or effect whatever unless it has been sanctioned by a vote of not less than two-thirds in value of the shareholders at a jj-eneral meeting' of the company duly called for considerinfj the by-law, and has afterwards been confirmed by Supplementary Letters Patent. - BOOKKUPING FOR JOINT STOCK COMPANIES «i " Sifcliim ji. (i| Ai iiv time n«l nuiro Ihuii ,ix m.'iuli-. illcr lliv •miclioii of »iuh hy.law iho i-omp.iiiy mm petili,)ii Iho l.iviiloiianl. (iovt .r, ihr.uiKh llic l'r,.\iiKii.l S.xr,.i„rv, f„r tin- i,„ii. ,.l Supplmu-ii- tary Lvllerh Pmcm. (j) With ihc p>'liliiui thv ci.mpany »hall pr.iilvK-c llu' hy.taw ami olabll!,)! lo ihf »ali»(atlion ,.| Ihi- I'niviiulal Sccrclary. or of suih olh«r olBciT as may he tliarijed by him to :cp, i i Teoii, the due pa.H>atte aiij sanction of the hy-laiv and if the petiti. !■, ■ respect to llie increase or decrease of capital, the bonji fide characlei of the increase or decrease of ..ipital thereby provided for. (.1 I'pon due proof so made, the l.ieulenant-fioveri.or in Council may, by Supplementary Letters Patent, conhrm the by-la«, and, with respect to an iiicr ise or decrease in capitid, may. with the consent ttf thj company, by the Supplementary r.etters Patent, fn the amount of r ich increas, or decrease at such sum .is to him ma) seem proper I the ttcc thereof shall he Kivcii forthwith by the Pro\iiicial Secretary in T/tr .mellv; and, thereupon, forin the dale of the Supplementary Letters Patent, the shares shall be re-divided, or the Capital Stock of the company shall be and remain increased or decreased, as the case may be, to the amount, in th< m; ■.tr, and subject t,i the conditions set forth by such by-law and Suppi . . ntary Letters Patent ; and the whole of the stock as so increased or .,.creased shall become subject to the provisions of this .Act in like manner (so far as may he) a> thounh every part thereof had orij-inally formed part of the stock of -.he company." Intrt'iix,'. \o bookkeeping^ entries are necessary for an increase of Authorized Cipit.il, except when a special account is kept for I'nsub- scribed Stock, in which case this account would he debited .and Capital Stock credited for the amount of the increase. l>fcre Reserve $80,000 To Impairment of Capital $So.ooo Toi-liisi' ImpiiiniK'nt and Reserve with a balance of $jo,ooo. which should put the shares of the company in a thorouj,Wily healthy condition. The old certificates held by the shareholders should be returned to the company and new ones tor the decreased amounts issued in place thereof. In the Stock Led-j^er each shareholder would be chary^ed with the amount of his Slock reduction. In cas..: where a balance is standint,-- at the debit of Profit and Loss, the amount y:ained by decreasing the Capital of the company miy be put directly to the credit of this account instead of passing it throu^'h Reserve account. Issuing Shares at a Discount. The Ontario Mining Companies' Act permits shares to be issued at a discount under certain restrictions ; the Dominion Companies' Act ,ilso provides for this, while the Ontario Companies* Act is silent on the point. It is extremely doubtful, however, if ihe holders of shares issued at a discount under the last two Acts would escape liability to creditors in case of the inability of the company to meet its obligations unless this were specially provided for in its charter. ffijTuK Ontario Mimst. Comi-anifs' .Act.— " Section 6. — (i) Not withstanding anything to the contrary in the Ontario Companies' Act contained, any mining company (whose charter does not contain a provision that no liability beyond the amount actually paid, or agreed to be p.iid, upon shares in such company by the holder thereof shall attach to sich holder , may, for the lawful purposes of the company and no otlK-r, from time to time, by by-law, to bo express!} sanctioned by the I BOOKKEEPING FOR JOINT STOCK COMPANIES. I'l company ami to be madi; for tlie purpose, dispose of shares in tlic company skt sin:li premium, or at such discount and on such terms and conditions as to the company seems to he advanta^'eous and proper ; provided, however, that a copy of such by-law shall within twenty-four hours after the by-law was sanctioned be by registered letter transmitted to the Provincial Secretary, and that such copy shall he verified as a true c.»py by the joint affidavit of the president and secretary, and if there are no s ich officers, or they, or either of them, are or is, at any proper time out of ihe Province, or otherwise unable to make the same, by affidavit o{ the secretary or president or one of the directors, as the case may require ; and if the president or secretary does not make or join in the affidavit, the reason thereof shall be stated in the substituted aflida\il ; and any company which refuses or faiU to comply with the provisions oi this section relalive to the transmission of a copy of the by-law lo the Provincial Secretary, shall incur a penalty of $20 tor every day durinj; which the default contii.ues 12) Everv stock-certificate issued in respect to any share -^old or disposed of by the company under the provisions of this section shall boar upon the face there if distinctly written or printed in red ink after the name of the compi.ny. the words " Operatin^^ under the Ontario Mining; Companies' Act " and where such slock certificates are in resp.ct of shares sold or disposed of at a discount, the words "Issued bv the company at a discount of per centum," the rate of discount to be inentioneti as a part of such words. Section 7. - \o share in a m'niiiff company shall be issued, sold or to be in any other manner disposed of at a rate less than par; unless under the authority of a by-law passed by virtue of this Act ; and any director, officer or af;ent of a company who acts in contravention of this section shall, on convic'ion thereof, be liable to a fine of $200 and to the costs of conviction, and in default of payment of such line and costs may be sentenced to imprisonment for a period not exceedinji three months." f/fj The: Do.MrNiON C'omi'ANiics' Act. Section 35, Clause 2. " No h) -law for the issue, allotment or sale of ary portion of the unissued stock at any jjroater or at any less premium than that v\ hich has been previously authori/ed at a general meeting', and no by-law for the remuneration of the president or any director, shall be valid or acted upon until the same has been confirmed at a t^^eneral meetini^." 92 ENTRIES IN BOOKS OF ACCOUNT. Exercise 87. — The Georgian Bay Mining Company, Limited, is incorporated under the Ontario Mining Companies' Act with an author- ized Capital of $500,000, divided into 500,000 shares of $i each. The incorporators receive 200,000 of these shares in payment for their mining property ; the rest of them are sold at a discount of 40 per cent. Make Journal entries. Answer.— An account with " Discount on Shares" should be opened and charged with the 40 per cent, discount on the shares issued at that price. This account should be dealt with in much the same way as ** Organization " or "Goodwill," with this difference, that in the Bal- ance Sheet the " Discount on Shares ' should be deducted from the Capital account instead of treating it as an Asset ; in this way the true Capital is shown. The following entries are required by the question : (i ) Mining Property.. 8200,000 To Capital Stock $200,000 Fur Mhiin-s iNMueii in pavm''iit of Mining; I'ruiierty. (2) Cash $180,000 Share Discount 1 20,000 To Capital Stock.. S300.000 Fur Rale of «hares i\X (W cenlM eacli. The stockholders would be credited in the Share Ledger for the par value of the shares in the usual way Exercise 88. —The shareholders of the above company donate 10 per cent, cf their share holdings to be re-sold to provide funds for special development purposes. Make journal entry. Answer.— Treasury Stock. Stock donated to a company in this manner is called Treasury Stock and may be sold by the company at any price obtainable without violating the requirements of the Act. Treasury Stock account should be debited with the face value of the stock when donated and credited with the par value of the shares subsequently sold. An account called "Development Capital" or "Working Capital" should be opened for the purpose of keeping a correct record of the income and expenditure of funds thus raised. The Journal entry is Treasury Stock $50,000 To Working Capital ?5o,ooo Fur ilimatiim cif r>j Tin; Dominion Comtames' Ait. Section 41. If afier such de- mand or notice as is prescribed by the lelters patent or by the h>-laws of the company an\ call made upon any share is not paid within such time as, bv such letters patent or by the by-laws, is limited in thai behalf, the directors in their discretion by vote 10 that effect duly recorded in their BOOKKEEPING FOR JOINT STOCK COMPANIES. !'• minuies, may summarily Jeclare forfeited any shares whereon such pay- ment is not made ; and the same shall thereupon become the property of the company, and may be di^posed of as, ii\ ilie by-laws of the company or oiheruise, they prescribe; but, notwithstanding; such forfeiture, the holder of such shares at the time of fi>rfeiture shall continue liable to the then creditors of the company for the full amount unpaid on such shares at the time of forfeiture, less any sums which are subsequently received by the company in respect thereof." " Section 42. The directors may, if they see tit, instead of declaring; forfeited any share or shares, enforce payment of all calls, and interest thereon, by action in any Court of competent jurisdiction ; and in such action it shall not be necessary to set forth the special matter, but it shall be sufficient to declare that the defeiulant is the holder of one share or more, stating the number of shares, and is indebted in the sum o( money to which the calls in arrear amount, in respect of one call or more, upon one share or more, statiuf,' the number of calls and the amount of each call, whereby an action has accrued to the company luider this Act ; and a certificate under their seal, and purporting' to be signed by any officer of the company, to the etfect that the defeiid;tnt is a shareholder, that such call or cills has or ha\e been made and that so much is due by him and unpaid thereon, shall be received iii all Courts as prima facie evidence thereof." KxGRCtsE 92. \Vm. Scott subscribed for thirty shares of stock of $100 each in th- Toronto Coal \- Wood Co. I.itniled, and pays thereon calls amountinj,' to 40 . I'ailiiiii to p.iy Mibsequenl calls his shares are forfeited bv the company. Make Journal IJUry. Answer. — The entry to be made in this case depends somewhat upon the entries made at the time the stock was issu>'d. If individual accounts were opened for the shareholders in the Genei ' 'dj,'er and (.'apital Stock credited for the entire Subscribed Capital. S. account at the date of forfeiture would show a debii of S.^.ooo (par value ,■<( thiriy shares and a credit of $i,joo (calls paid by him). These shares now become the pro- perty of the Company JlIkI should be kept tr;ick -if in a separate account called Forfeited Slock. The company has now in its possession shares amountlnj,' to $;,.oou on which il has leceived payments 'Vom Scott amounting to $i.JtK>; il is clear therefore, thai il realizes a profit of W> ENTRIES IN BOOKS OF ACCOUNT. $1,200 by the forfeiture, which closes the company's dealings with Scott in respect to these shares. The Journal Entry should be Korleited Stock $^1,000 To Wn. Scott $i,Soo " Reserve Account 1.200 This entry when posted will balance Scott's account in the [.edf^er The amount crod'ted to Reserve mijfht have been credited to I,oss\- (iain, but unless the business is of such a nature that it contemplates makings H substantial portion of its profits in this way it is better to handle it as above. The Reserve Account may be closed into Loss & Gain at any time. In the Stock Ledjfer Scott's account would be closed into a special one headed Forfeited Stock. Exercise 93. —In case the company subsequently sold the above thirty shares to Jas. Brown for cash, at par, what entry would be made .-' Answer. ^This transaction would be dealt with in exactly the same way as an original subscription and payment of stock exceptinjf that For- feited Stock would be credited instead of Capital Stock. The latter ac- count was credited when the stock was issued to Scott and therefore when re-issued must not be credited to this account ajjain but to For- feited Stock. In i!'e Share Ledg^er James Brown would be credited in the usual way and I'orfeited Stock account debited. FxERtiSE 94. -Jas. Smith subscribes for sixty shares of the Hamilton Leather Company's Stock at par and pays calls amountiii},'' to 40/. His shares were then forfeited owinjj to non-payment of subicquent calls. A week later the forfeited share's were sold by the Company to Thos. (ireen at par for cash. Make entries at tlie time of forfeiture and also when subsequently sold to Green. Exercise 95. A manufacturinfj company is incorporated with an Authorized Capital of $150,000 divided into 3000 shares of $50 each. The orifjinal subscribers are : H. Prinfjle 1000 shares, A. Mann 500 shares, J. Nel-ion 800 shares, W. L. Rathbone 300 shares, C. J. McFaul 400 shares. In settlement of his shares McFaul turns over to the company a valuable patent while all of the others paid cash in full of thtir subscriptions less BOOKKEEPING FOR JOINT STOCK COMPANIES. l.T lo: w'lich was put to their credit in consiUcnilion of services rsmlercil in or(;ani/ii,g the company. At the end of the >ear the profits umoiinted to $30,000 and a dividend of 10 «as declared and paid. The reitlaindcr of the prolit, were c.-.rried lo tile Reserve account. The second vear'. husiness resuhed in a loss of Sio.cw. M the betfinninK of the third year the shareholder, donated ioV of their shares to the companv to he sold to provide funds lo carry on the husiness. This Stock was s'uhseHuentlv sold for cash at $40 per sliare. A year later the Capital Slock of the Company was reduced lo SiJo,o<»o. {'/) .Make journal entries. ft Show complete stock l.ed^'er I'lUrics for the period .ov.rcdhy tile above transaction. liXKKClSE ,,(,. .Mesaiider Grey subscribed for sixty sli.ires of the Wilson Wap.n Company's Stock at par and after payiiij,- .55 oj, the same his shares were forfeited for non-payment of calls'. .Make journal entries („) If Capital Slock .Xccount represents Subscribed Capital; (4) if it represent Paid L'p C'apit.-d. KxKRclsi:,,;.-- .\ Company's .Net I'rofll.,, before makinj; any allow, ance for Bepreciation, etc., amount to $jo,ooo. It is decided to write TJi/, olT Machinery, listed at 840,000 and 20^ off ratterns which cost $5000. Ten per cent is also deducted fr Hook Debts and Bills Re- ceivable aniounlin(; to $16,000 to create ;. e: rvc for Had Debts. The rest of the Profits are distributed in 1 he form of a Cash Dividend of $14.4U" and a Stock Dividend for the remainder. Make Journal entries. ling losses lixERClsK (,8.— .\ company has to Ihe credit of its Reserve for Bad Debts account $ifioo and durinjr the year sustains the followii through Bad Debts : James .Munro owes $400 and pays only $300 Thos. Wilson " joo " " " 200 Sanil. Jones " 8(x> ^50 Make entries showing clearly how you would deal with Bad Debts I'.XHHcisE ijy.- The N'ewniarket Woodenware Company, Limited, purchases the business of J. B. HeveridKC & Co., London, paying for it m ENTRIES IN BOOKS OK ACCXHJNT. J^.ooo cash, 50 shart's, Sloo each, of fully paid up Preference Slock, hcariiijj 6 per cent, prvlerentia!, cumuliitivc dividends, and 150 share-* ofSitwcach of Common Stock. The Assets taken over hy the Com- pany were as follows : Ptant, $3,500 ; Hook Debts, $4,000, Manufactur- ed Goods, $5.iKw ; lioods in Process of Manufacture, $6,ofx) ; and Raw Material, S.^ooo. Make entries in the Company's books. KxKRclsE 100. Heveridjfe &. Co. Show ciosinjj entries for above in books of J. H. KxKRClsK 101.— The total paid up capital of the Newmarket Wood- enwareCo., Limited, consists of J,ooo shares of P .'ference Slock and 1,000 shares of Ordinary stock, of $100 each, Ihe former hearin(f t> per cent. Preferential Cunuilative Dividends. At the end of the first year the net pro.'ils amount to $iS,ooo ; after paying' the dividend on the Preference Stock, and carryin^^ $J,ooo to a Rescr.e account, the remainder is distributed as a Dividend on Ordinary Stock. Al the end of the second vear the net profits amount to $7,000, so the Reserve account is closed and $9,000 distributed amon^' le Preferenc*- share- holders. The third year's profits amount to $i0.ooo ; the dividends due upon the Preference Stock are paid and the balance distributed as a Dividend on Ordinary Slock. Make Journal entries required at th? .Mid of each year. KxEKiMSE to2. — Three joint stock companies engaged in the book business amalf,'amate their interests under the name of the Hamilton iJook Syndicate, Limited. It is agreed that Stock-in-Trade be taken over at a discount of 20 pi' cent.. Fixtures at a depreciation of J5 per cent., and that Book Deb , he subject to a discount oi' 10 per cent, to he set aside as a Reserve for Bad Debts. On this basis 7 per cent. Preferential Cunudative Stock is issued for the amount of the Net Assets of the three concerns. .\s payment for Good Will they receive $3,000, $4,000 and $5,000 Common Stock respectively. On the date ofamal- tfamation the Balance Sheets of the 'hree companies show the followinjf totals : BOOKKEEPING fOR JCINT STOCK COMPANIES. UtIlltN. Nil. I. . rh'. I I'l'. CmkIi -■ ! N... 3. llr. fr. Df. , iV. « mt[ 9 win< ll, 1 lO.IMHl I.IHHI :t.iitiii i.OW) 4.IXKt $ mt 9 l,M H !hin iti.:< ^-'-nt .■*»,. 'ifm ■4i:,HtNi ijiiT.w nNANOAL STATEMENTS. C H APTF k V. FINANCIAL STATEMENTS. BaUhcC Shcctt. There iirv two kindH of HaLince Sheets in ii<4C iiinoiii; fiiiiaJiaii hookkeepers. one of which ■:, ^^encrally known hh the t-ithimnar and the other as the Kn^li^h Hatance Sheet. The former combines in ont; statement the Trial liahince, the Loss and (iain Aeeoiint and the Statement of Assets and IJabihlies, but unKni mately in Hueh a condensed form that it eati seldom be understood by the average biini- iiess inaii. As a workinjf sheet 'or the boi>kkeeper the Columnar Bak'n^o Sheet doubtless has mcits whiel commeiul it to mam account; its, Imt as a statement of a C"omp.iii> 's a.Vairs to be placed before its shareholders it i> allO(,'elher unsuitable. For this reason the Hn>,'lish Balance Sheet and ii-i accompanying,' Trading' and Profit and Loss Accounts are much preferred by those who have char^^e of the accounts of Joint Stock Com- panies. Both the Coh-mnar and the Knj^lish forms are illustrated in the answers to the exercises which follow. lixERCiSE 104. From the Trial Balance on pajfe loi taken December ,IT, itjoi, make a Columnar Balance Sheet, allowing; 2!;i percent, for Depreciation on Builditiffs, 7'., per cent, on Machinery and Office Furni- ture, 10 per cent, on Patents and Patterns, and 5 per cent, as a Reserve for Bad Debts on Book Accounts and Bills Receivable. Stock on hand December }^, 1901, is inventoried at $150,000. Answkr. The Columnar Balance Sheet- In this form of Balance Sheet it is customary to show the present value of appreciated or depre- ciated Assets in the column headed "Inventory." Accrued Liabilities which have not yet been passed throiit,'h the books ma) be provided fo either in a similar column or hy usinjj the same column ;ind initialling the amount as a Liability to distinjjuish it from the .Asset inventories. In order to obtain anything like satisfactory results we must first close the foUowinf,' accounts into a ji-eneral Merchandise account, namely: S.ock on ban.:, Jan. 1, 1901, Purchases, Returned Purchases, Sales and BOOKJUBPING FOR JOtNT STOCK COMPANIES. TrUl BaImcc December 31, 190a Dr. Ch. (MBie Kurniturt^ SliNk III) lianil, .Ihii. I. 1901 . I'liri'huwM Hall- ... Rvtiinifil riinhrtt NaIvh ... TasM and IiiHiirnni't- Wiirknifii'" Waxi'H . , (MtiiT SaUiiix Fr«-ighl iiml Duty. . Muniifni'tiiriiiu Kx|m-i) flftirii Kx|M'tllWN AilvtrtiKJiijj «n Siili'H . «7,.1M) i:.w»» i«n,.iin j >ii.wn ; '*"»l M,IIW 1 un ■i.iM ' ' i«,ii:»: 1 •miuoa 454,7ffO 1 1 I,ooo 4.(ni j anil i IU,I1U) IHIiOO 3!i.m a,Mii 4,129 4,i»l (l.t<»l )>ir. liili'TTJit on Miirtui HillN Keit-iv>.)il.- . (''>I>iliilSi>H'k .i)k Ovt-nlrufi. , , 1.87.1 ■ .1,001) I R.l,:2i~)0 48,oa- 4,230 riNANOAL STATKMINTS. !:■ H M- " - M. I I I s a Q 2 -:. M. 5. M. I I ' 1 ? f I ? S « 9 -■ L- 5 V' - « 3 '■ s 3' Si ■'■ -' »• M « I .-- i - ' r. S Si E- ;• .1 s i i t = - i i i ? ■= I I I M ' i i i 3 -2 i ■OOICKEHPINO FOR (OINT STOCK COMPANIES. <( S ' I H >1 X I, I I i h i S » '■ i S •^ ill III J FINANCIALISTATEMENTS. TRAUINl ACCOUNT FOR THK Sl.Hk i.rilm.Mi. Jammi.v:n, ItMtl ! * ,'■■ ] 44. •li.'HM ^lln■ll,.^H■^ 200.000 IW l,f>0U00 lOB.OOOOti Fniglit and Duty 23,A00,0tl Wagt-H ir>,iHNir)(i I)p|ir€-(-iatiiih on Patents , . ... li.iVKtIJO " I'dtterns ' 1.50000 , " " Macliiiit'rv 1.1,037 ,.0 1!»,037'50 Maiuifactiiriiij!; Kx)ii-iik('m .'ssoooo (;i<.s« I'liiHi ..(iMiwI tr. r-ntit anil U>hs Acii.iint ' 114,I37|«> WK).7riOO(i Returned Sales. Our Merchandise account then shows a total debit ot f.H.^^75 ^"d « tot«l credit $450,750. In the case of Reserve for Bad Debts the 5 per cent, may be extended as a Los.s and the remaining 95 per cent, as an Asset, or instead of the 95 per cent, the lull 100 per cent, may be carried to the Asset column and the 5 per cent. Reserve placed in the Liability column ; in either case the 5 per cent, must appear as a Loss. KxKRCiSE 105.- From the Trial Halance fj^iven in the previous exer- cise make the Trading Account, Profit and Loss Account and Balance Sheet for the year, follouin^' the Lnj^lish method, showing the distribu- tion of Net Profits in the form of a Dividend of to per cent., a Reserve of $r>,ooo, the balance hein^j carried forward to follow iny year. Answkk la Trading Account- In a non-maiuifacturinfi- Trading concern the Trading Account shows on its debit side the entire cost of the goods handled and im its credit side the sales and inventoried value of the unsold goods. The debit items usually consist of Stock on hand at beginning of year. Purchases for year less Returns, Freight and Duty ; the credit items of Sales less Returns, to which is generally added the BOOKKEEPING FOR JOINT STOCK COMPANIES. YKAIi KXIUXii hKCKMBKK :il, HUM. Sales 4.*i4,7.'i)MNI l.f,Hs Hcliirnw 4.IMN) INI St".k..i. Imnii, Ihv.ml,,'! :n. I'.HH 4."tll.7.'>l}« carried lo the credit side of the Profit and I^oss Account, or as w i have hithcrio referred to it in this b.ioU, the Loss and liain Account. FIKANCIAL STATEMENTS. I'liOFIT AND L().SS ACCOUNT FOK TaxL'Hfthfl IiiNiiiariii; Offiw Salurif* (Ji'iierul Kx]M.-i]Ni-n A.iv,-rti»ii.ji Di-'iiuihtson SalcM lrit..s<-,l l)i«lril>u(i,>„: L l>iv. "f llf ..11 I-Hi.J i.i.<-,.|.ila| of.-=.-,(«Ml«o' 4,J3UU) .oitQnt) 4..H3 m 39.IMM •I'i IU,887|fiO i! ltHlaii.vf.ii-UHnl l.n .W.IIOOOO fl.lKKlOO 3.(W lli •ir. '/>' Profit and Loss Account. - Alter f.irryin;; to the credit -■-ide of this account the liro.ss Profit tor tl:c year, llie various items of expendi- ture not appearini; in the Trading Account should be entered on the debit side, and additional profit items, if any. should be entered on the credit side ; the difference between the two sides thus constituted jjives the Net Profit for the year. If a balance of Profit or Loss has been carried over from a previous year this should be added iii an e.,tra section of the account which should also show the final distribution of the total net profits. BOOKKEEPING FOR JOINT STOCK COMPANIES. VKAR KXJMMi MKCKMBKIt ;tl, Jim]. <>r.isM Priilit fnim Trading Accniint DiMviiiiriti. till i'ni-i'liiiHi'N Srt I'n.til (.«■ Vmr (c) Balance Sh«t.-The Knglish form iif Balance .Sheet is ii .Stale- meiit of the .^s.sets anj Liabilities of the business arraii),-ed so as to (five full information respecting depreciations, reserves, capital account, etc. The Liabilities are usually placed on the left side and the As.sets on the rinht side ; this is immaterial, however, and matiy of our leading accountants reverse the order. The form shown on pa^cs loK and io<, is a ta\ orite one with Canadian as well as with l-lri^^lish accountanls. RNANCIAL STATEMENTS. BALAN( K SHEKT l.ruill.lTIK!*, ' MuMgagf pHyai.l.. j CrLilJtDiH III] (»pi.|i Account ' lUiik Overdraft ! 7'.. Skitrehotii-rn: I SnlMWTilifa Capiial, .l.fNNI hIwil-h of »]. II.,-.; R.wrv,. Am.nnt : Halnntcof PM,Ht-.c,uiie.Horuar.J ! {('iHitiiigent LiaUilitieN. such aa Notes nndiT l)is(j ! 4,230y)0 1 i ] SK),0(lo'oo ."*,«]Oil)0, fl.COOlKI »,006 25l BOOKKEEPINO FOR JOINT STOCK COMPANIES. DKCE.MllKR .'ll, l»i|. AsSKT-., 9 •■ Uiiil.... MnJI'lin^'H i:.-M>IKMI(( l.f^N -2 ■, I)f|irt,ii(ttiiin 4.;i7,-.(«i yUrhiu-iy l>INI,.-MHHttl r..H, 7 rif|.nrmtii.n , .. ■■ l.'i.it;t7 rat StlH'k l>ll h, M'l, r).-.fi;ii, i 7,t»i2.TII 7.1(i,L'.Hi -J.-. 11,1 FINANCIAL STATEMENTS. ExEmisE ii»l I.IMHI Ksikcm: 107. On January I, 1900, the Kaulbach \ Schurman Company, l.lmitjd. was incorporated, with an .\ulhorized Capital of Sjoo,ooo, divided into 2000 shares ol S, 00 each. The business precously carried on bv the firm of Kaulbach ft Schurman was purchased at l.,e following fiil'ures ■. Huikliuirs and Land, $40,000 ; liooU Debts, $.6,000, guaranteed Rood; lioodwill, $50,000; Goods on hand, $,4,000. 1 he firm accepted in full settlement 817,000 Cash .-md fully pa,d shares for the balance. .Additional shares were subscribed for a.id paid to the amount of $47.o«'. -^t ""^ ""I "' ""■■ ''"' ""' f''"'™'"*-',;;"}'"-";™ " placed before vou from which you are required 10 prepare I rial Halance, Tradi,,.. .\ccount. Profit and Loss .Account and Halance Sheet : Cash on hand, $8<„o; Machinery cost $20,000, depreciated 10 per cent.; ur- chases, $7 vooo ; Sales, $.j8,o.x, ; Discounts on Purchases, $.,50 ; D.s- counts on Sales, $.5,50; Discount on .Accounts f;u;,ra,ileed by Kaulbach it Schurman, $27"; B^'J "'Ws, $i.kk>; Less on .Accounts jjuaranteed bv K.iulhachX; Schurmiin, $700; VVa(;es, $7400; Salaries, $2.KX,; Taxes, $■,700 ■ Directors' I'ees, SKoo ; Sundry Debtors, S(..,«i ; Bills Receivable, BOOKKEEPING FOR JOIN r STOCK COMPANIES. 1 1 1 $-'7,(>oo ; Sundry Creditors, $i(X» ; Bills Piiynhle, $ro.cxx); Inloriiti Dividend paid June ,v». '»)<», $,1700 ; Goods oti hand IleLembtfr ,if. kkxj, 5ij4,8oo; Dividend proposed 10 per Lent., balance c( IVotits to K- carried to Reserve Account. Prepare fa J Trial Balance, f/>J Tradinjj Account, frj Profit and Loss Account and (i/J Balance Sheet. HxERiisK i<>S. - From the tollowinj; Trial Balance, taken December :^\. 1901, prepare Trading; and Profit and Loss Accounts and Balance Sheet, allowing,' 5 per cent, for Deprecialill ' ll«ill l.7--*.'4; Comniisxion Paid, $465 ; Dis- counts on Purchases, $ I _'() ; |)i^i\nMH> k>ii Sales, $105 ; Machinery and Tools co!»t $bj((xj but •lock-taking' shows them to be worth only %^**to ; Bahince to credit of Profit and Loss, carried over from last year, $J4o ; Office Kurniture cost .$0^7, depreciated in per cent.; Book Debts Receiv- able, $''5J7. and HilN Receivable $10,000, on both \>'i wliich provide lor a pos.sible loss of 5 per cent.; Creditors on Notes Payable, $i3,oot>, on Open .\cconnt, S;,-;. }'rovide for accrued \Vaf,'es unpaid, $195, and cur- rent Aihcrtir^inj,'. $icK). rhc Paiil-iip Capiti.l Slock of the Compain is Mxi'iu [--K 110. rtic Trial Halaiice on opposite pa^;e is taken from the book*; oi llie Gou liiij^ t'o.. Limited, on June .50, nyji. The Stock-in-irade at the end oi the year is valued at $,Vho,'ainst this year, carryiiiff bal- ance forward, and write 7'j per cent, ofl' Plant and Machinery. Prepare Trading and Profit and Loss Accounts and Halance Sheet, providing-' for the payment of the full dividend on the Preffrence stock, and h per cenl. on the Ordinary stock. Place $10,000 more to the credit ot Reserve and carrv b;ilancc of Profits forward to next vear, BOOKKBEPING FOR JOINT STOCK COMPANIES. Trill Balance, June 30, 1902. 7|«-c .■,,,1, lv,.r..„.„,,. M,.k lli.h.Mn Si,.k J U.-.r>,. A.. 1 I""-'' '"'I'' -lub I. XCI.IMI K«,l.,, I',,.,,,.,, .^,„„ l'l«r,T ,M,.I M„,.| ., 1^- „,, '■"■■ n,-,..-. »■"«■- |.M... «"' '■ 'i"! KM-.1-. . .,-„, Fill[.IH KVJM-Ils.., ('i-.'.ijt,.,><,„li,„.|, ,(,,, ,1 C'i"lihii».«i Hill. I',,,:, 1,1,. KlfighlHl..H)ut.\ ;,,^^, l',i»l. ill Kiiik II,, ,„ ■*''"'''"i"" \.:m ''"' ' ' I»»l Tuxe.,,,,,! I.,K„„„„.,. ^,,„|„ ^"'"'■'^■\ i IHll l>"l'l"l "|"M A,r,.„„l |i.,„| IMiioi, ,,i, Hill, n,,,.ivi,l,i,. |,,„„ I'.ii.-iii UiaM. , .„, itf.Hrl AT till' Hail JlrlplH ""''"■■I"" I.f»i Ituili < liarB.-, . .,„ I'rulil .ml l..,„. lluluiB-,.f,,™ur,i... s;i'il.. . . \m\ l ii\ .'l,ltlMI ;.',IMIII lh',.l.'.'1.Ll Marl ,„MV 4.^7"> ... ! 1 ,, l.,Jl. III lii^htH l,.-rfN> ii.l.mlV.'IVi-r.Sti..k «'■/ •■ ■■ llr.liii«iy ■■ A.ll BftlttiUM' li.iwiiril t.. IH.V.I ytiii •J..VH) ; (Nt l..'.i ift ■NNI IMI •J..1WI I (Ml 4,0110 I (Nl .-^Wi Oit ii.ii'i (JO :St.li'i (Ml BOOKKEEPING FOR JOINT STOCK COMPANIES, Ilnltin.'f „f l',:,m rimii lii-t vfiir KINANCIAL STA1 EMENTS. Cl.'.lllM,. fill 0|ni, _\.< U. — .^.■ tr L-1 V.-..1 l-lolll Ul.l l^.-~ \ 11,1 IIM.AMK MIKKI. • IVI.'IXi.. M..IKV. llilK ImkI tlKMNNt Departmental Trading and Profit and Lost Accounts, i'^^' ciior- mous deiflopnu'iil I't rcci-nt \o.ir^ .>1 tlu- i.itpiirtiin.ntiil priruiplc as applied to mir im-Tiitiilik- (;stiihlishiiii.-nls liiis made the 4iic*itii''ii of departnu'iilal luvininliiik' a most important oiiv-. Wi- f-Hidl not, at tlitf present time, u^' " ore Cully into the matter thiin is tu'Cessary to explain the compilation of the Trading; and I'rotit a>id Loss Aecoiiuts. The object of (he attountant of such a concern should he to deterinine as nearlv as possible the profit or the loss rcsullin^; frnm the business ot each department ; it is needless to sa> that this ciinnot be done unless the records ar^- kept uith this end in view. Assumiiij; that the hooks of accitunt are kept so as to furnish all necessary details, the Trading' and Profit and Loss Accounts for submission to the directors would be con- structed alonjf the same lines as those shown on the followiii}: paf;es. The first one is suitable for an establishnieni having but feu depart- ments, the second for a concern with a lar^^e mniiher. The underlying principle is the sa.ne in both ; the department must be charged with its entire cost to the business and credited «ith returns. It is not at iill easv to determine all items which CTiter into the ci'sl with absoUile BOOKKBEPINO FOR ;OINT STOCK COMPANIES. •IINK ».. inrj. Sl.Hk M. r'>.. 1^. :s I"' ■•■'"■ I"! th'l'h Dm 'f- ..V ■■ iiii K .»-.l.l.. I....|1,....,,,|M ll,.|H.|,|, aro „„i ,wiUuu- :mkI .liuvt . haryv. I, apponionuO ac-.ordi„K lo soino plan «l,kh «ill Ih-m i.hcI llu. .-..muiuums of the partii-alar cMablishm.ni. Tako rli.. iicri. „l K,„i. |i,r inMaivt : ihis ,„ay b.. divided in proporlion ,0 ll,e lloor spa>o o.-.„picd hv ,1k- dil. teren, depar,m.nt». ,he rolalivc >alu. „f Ihal iWr »pa«, ,ho value ol Ihe stivk carried, or the sale.. The llrs, „r seeond n,e,hod, would seen, to be the most ec|ui,able. The salaries paid ,0 the elerks of the v arions departments are a diree, ehar^^e, bn, the cost of mana^-emenl, advertis- inK. delivery of ^-oods, e,e., ,>,.uld ; rohahly be apportioned aee,.,din« to the sales. These, however, are matters for the direelors .,r managers of the eoneern to deeide, ahhoi,|.h the ,.pini„n ,„ ,he .ueounlant vvonld iloiibtless he aeeepted in nu>st eases. In the ftrst illustration, the p...-, lars a ran^-ed after the lorn, of the regular Profit and Loss a,v, «i,h debi, and eredi, columns for each department ; the seeond form ^ives f, .formation respecting- an, '■'■1'""""^"' "" ""' ""'I i» reeontnten.led for use iu cmeerns with a lar^.e number of departments. In either e.ise the final apportionment ,.f the net profit would be shown on a sep.trate statement in the usual wav FINANCIAL STATEMENTS. liKl'AKTMKXTAL TKAIUNG ANI> I'KOlTf St.H'k, .liiii. I. \W.. I'.irrlmsr. Freight riiity <;r..s. Pn.Hl ! ■ IM>'- ^■M-"s.■ i,:(.vi I.IMNI !*.-M.O(((l »4lt.*HHI .^2:i.SiMi \i,kUi ■i,'*!"! I.lt"'> JNI l.'JI I'NI i.;t.-rfi i.M.-.n rm ti.rii" i.iiTo si I, I (W I t.\-2~{ i:.:wn !SllS„SIJ(l S-i.JiH .*is,tia4 IlKl'AKTNrKXTAL TKAlUXii AM> I'lluFlT iiili.ig A.-,-,miit IM.its. Tiwliiij: Ac'cuiint Jan, I. ,' ' :^ Krn>.'htj 1>, l!HI|. St.«k lIMil. DiVhsIIinhN OriiW- Il..nl. an.l ^li.H- Hats;ui.U'.i|.-< litHikM ('arpt'tM Mfn'!< Funii.>')Mn^'-4 Fnrnitun- t>tH) it.lHKl !H».(UNI IIHI.INNI L'-V"' "wdi |.».(• ■_';*, 4IHI ■J4.IMNI .-),(NHt :n»(' 4.:rfHi iii.siMi 4:t.iHMi h.inmi 4IN1 li.iHMi tii;.4iNi titi.mm IN.'Oni 121) l.i^iMl IK.'tll Lll.lMMI II.INIU litMi !I.,ii«»'i ;*-j;i,S(t

^.Si :o N.1 I..W. nt r>.'i.i.. !t.lo J7.:isu i.L'.".4 i.j:.4 Axr) LOSS ACi'oi.vr. ni-;r. in, mp> Jfll.lli" S"i.-':ii S2.-2IH s|s.i;.H X.t I'n.lil ..r [,...- n...... sai,u-,..s. ^;;}-^;;;; ''!Xnlf r.„,i. iv.„„. i.,-,. lil.'NMI ■_>.■.. WMI rl.lHHI .-,..NK. I. INK. t.'il'.INHI I7,J«II L'.IKKl .-,.:.--l !.|,-rfi C.iMHi l:i.M»( lMnhi -J.:.-,,, ;i,-^, ;n.iNM 4.«" !.>*.•.. ±».-.n -.'.--. •JMNKl -..IHHI lUMI |,_1N. :_>Hi .VJ.IHMl .V-_>.«l -J.-JiNl ;t.;i-,,( 4,-^, S4JNHI IT.tttll Jl.lHKl .{..tlKI 11,111 'iK.INNP r.l»«ll .VNl |.IHN> -'•Mt J.li.rf» -i.tilO -H.lWtlt _',.V"I I4. IH.IIHI .■*«HS.)».-) :* l:i:..V_1l *.MHM. S.H|..-„M. r-.T^r .xU.i-K. :<7.{..VV. -dMi.LNl. *.'.;t|n FINANCIAL STATEMENTS. i'.XHKtisK Ml. I'roin the I'olliiwiiif; iiit'orniiiiii nt;il Triidiiij^,' :iiul IVnlil ;iiu) l.oss \t.,.iMint Tor thf -.11, Urn J : Stivk on li.-iini. Doparli -lU A, |;imi;op;irlnu-nI A. IX-. iir, Di'parliiicnl A. il. fOIlipilc IVp irl- ir vMuhii^ l).ji- Ml- $.iS.4'>7 *'S -M'S.i.i X4 '.4,!-' S.i .i.„7K .P 4."72 «.! .1.!.-.V' "5 --'•54.1 71 i;.i'47 «4 .vf>i4 -^5 ..^,.5X7 4.^ .i5.4-i' H-' I'reiirlit anioiiiitL'il to S7,i4.tKi for PoparlnK'tit A ; *ihj.i).i tor H ; Sj,;.;;. iH lor f : $i.),s.4i tor l> ; and $85.4;, tor IC Duly a\craKi'J jo jxt lv nl. on A, iH per 1.1'nl. iMi li, 15 per coiit. on I', 7' per i.i.nl. on 1). and j' per cciil on (•;. Itio Stock valiialioiiv at tlio hei;iniiinf4- and fiid of llii; year (^.'tV'.-n iibo\e i Kknk- l-'reii^'hl and Hiity. lakin^' this into ntn^idcr- ation llf,'iirc- out the Sale^ as haviiij; Wvn mado in Departnu-ni A at -iii avt.'rat,'i' of .i5 per eeiil. ad \ a nee on total eost. In I>epiirtinent H at .;(i per eeiil. ad\aiKe, (.' at .'5 per eent. advatiee, I> at jj por eenl. advaree and !•" at 15 per eent. advaiK'o. nepartniental Salaries amounted to jM^i" for A, $4,v>.) for H, $:^200 for f, $2^^o lor l> and $iJO<> tor K. Tlu- annual Rental was !Si5,cxxi. eharfjcd a(,'ainsi the departments as follows: A. S4(XX) ; R. $4,500; <.". $5,000: l>, $1,200. and \'. the remainder. Speeial expenses were 84,15 for A, $;,45 for 11. Sj4.i fi>r f. $1 Jo for II and $110 for \\. The iienerat |{\ppnses amounted to $<|000 and were divided in proptirtion to Sales. I'se the first form shown in workinj,'. KXKKl shown. isK It lb. Work out the abo\c question usin^ ■ •lOiul form KxFRtlsK II J. Prepare 'I'ri,'d Bal,inee, Departmental Trading: and Profit :ind Loss A-eoiints and Italanee Sheet from the killowin^i particulars BOOKKEEPING FOR JOINT STOCK COMPANIES. IJl ..MaiiK.J tr,>,„ ,lK. hooks oMiK. II „..;i,o„ Tr;,>ll„. t„.. I.i,„it„l. lor ^car F'aiJ.up tapiL.l Suvk, S.!,„-.oo; Crojilors on Upon Acvounl .*.)2.,K»,; Hills l'„y„hlc, SHo.ooo: ,\.vo.,nls Rc.d>:.hle, S.K.O,,,; Hilk Rc«iv;,hk.. $4h,,Bo ; Prtmist'soosiS,;,,.., ; tasl, in Hank $4..,„ ; Sloro Kixu.rcs .OS, $„,,o; ,loo,K on l,.„ul. I..v. .„ . „,.,. f-„.„„, ,„ „.l,icl, >54.'«»' "a- M, rVpl, A, $,..,o,„ i„ IVp,. H, ,,„j ,,„.,^„ i„ |,^.|„ ^. . .Ik Purchases ,o, .,.ar in IVp,. A „.ro S, „..,„»,, in IVp,. B |.„,o..>and $.«.»« in f: l.ooJsonlKMulonJan, , . n„,. a„,oim,e>l ,o S,.,.,«<, in \ $.4.>«». in II, ;,„J f , ,„ r : ,,„ Sak-s ,o, ,1,. ^.ar .,,>,v -f, ,..,,., in A, l,;,,<,« i„ H. and $jH i„ c -, ,,,, ,o,al .k.par,nK-nlal oxp.ns.s worv f i.i.4"o lor A. t..i.„ for li anj s_..,o i_ . i;Ni:«. isl, , ,,,. IlK. a„„„al llalaiu. Sli..., of a Doparlmonlal TraJ- ill); I o. for llu- >oar ciuliiis,. Doc. ;,. ,,,„,, „as as Ih-Io« : f 7.JOO l.hihiht,,^. .J- vVv. lapil Bills il Stook . !■,..> ahk- S.i -■.4i>' llills Bccoiiahio lasl, liMLMVs S'.vk-inTrailo : llr> l.ooil. I lo,liinL; Hooks .f4. ^.'"•'«"" $.v>.cxio l".tr Iho year nifij, llu- hiisinoss was ,,s folkuvs : I'uroll.isos : |)r> l.oojs .f _.„,„,,. i lo,l,i„i,. S;,..,.,. Hooks S? .,«, ■ Sales; •• ,. The l)r> (iooJs were sokl a, ,ioi aJia.Ke on eos,. ,|,e llothinf; a, 1-^%, and ,he Hooks a, ,,, . Speeia! Kvpenses were eharu-ed ajrainsi l')r> lioods deparlmen, t;,;oo,i, l■|,„hil,^,. S-'.vh'. and Hooks ,f,s,„. The lieneral Kxpeiises amoiinled to fv>» arul were .,llo,,ed in propor,ion ,o I'rom ,he lorefoin^- parlieulars ascertain stock on hand at the end of the period. .inJ make, he nsii.d Dep.irlnienI \cconiils and llajariee l_>i> FINANCIAL STATEMENTS. lOxKKi (-.E 1 14. From thu tollowluK iiiformaiinn arrange accordinjf to Ihe Enjjtish form the Balance Sheet of the Montreal Knuineerin^; Co.. Limited, for the year enUin>j June ^n, H)0_' : Premisi-s eost $50,870 ; Plant cost $5^.040; Patents cost $10,000; Raw Material on hand, June ,10, 1902. $6,ooti ; lioods in process of manu- facture. $1 2,aK) ; Manufactured Hoods. $4,440 ; Hook Debts Receivable, $.12,,ioo ; .Authorized Capital Stock, 2,000 shares of $100 each ; Paid Up Capital, $qo, ^50, oi which $400 consists of Calls paid In advance ; Calls in Arrears. $30 ; Pehentures outstandint;. 500 of $100 each bearinj; 5 per ■ent.; Reserve. $1(1,500, of which $i4,txxj is on depoj*!" in a Special account in Hank of Commerce ; Cash on hand, $200 ; on deposit in Cur- rent account. $2,184; Credit-'rs on Bills Payable, $10,000; on Open account, $750; Depreciation written off Plant. $1,050; Provision for Bad Debts, $i,.ioo; total Net Profit for year. $iH,'}H4. of which S4.txx) was paid at the end of Dec. njoi, as an Interim Dividend. THI-: MONTRKAl. KMll- Bai-a.mk Shi-:et kor \'kak SiiliH.rilK;I>hI>)<' ■ (l|i.-t. AirMiinl l'f.irit rtl.il !>."- Av.', I : T.itrtl Stl Ph-tii f..i y.Hi !..-<.- EmU'iIiii |tiiMl<-i)'l r>'ii.-.Nc p.rioUi.„,v. „u, »h„ .s,,e. h, a c.™pa„va.c recorded .„ch e .a,„e ;, ,, ,. - H.ns Pa,ah,e. They a,e .eUee.aWe o„ «pe.i„ed d. a !■ .-".'1. qu„e fa-Hue,,,!,. „k,v are i.s,„ed above or helo„ par, a.„r.L,; , era. o. ,„,ere. ,He, Hear, ,He condition or ,„e .oL .ar J '"^ ..me, ,he number o, years ,hey ha> e ,o ru„. and ,be na.u-e o,' ,„e -e r,„e, beh.nd ,ben,. The holder, of ,eeu,ed deben.nre, are re prefe,en„„l eredi.ors of ,he eon.panv i.^uin^ ,hen, m:i:ri\(; to., i,i.>ini:i). E-MllVC. JlNt ,,,, ,,,,_, PlerilJHt'H , , imporla.,1 pr,nisi>«is reblin^ lo audilor- aiul tiK'ir iliilii-". Tlii'se ■.octi.'iis arc liiioIi;iI in full as lullinvs : ■' J7. If the special Ad. 1.-llL-rs piUvnl. »r tlic hy-la«s >.f llK- compaoi Ml Jivo.;!, tlu- .ucni.it^ of Ihc coinpHiiy sliall lie examined once at lea»t i„ every year, and the crrcclness ..f ll,c b;,lan,e sheet shall he ascer- tained hy an aiulilor. 88. Snch andiu.r may he appoinced h> resolnlion at a ^'cneral nicel- i„K of Ihc conipam ; il so appointed, he shall h.tld office iitilil the next annnal Kcneral meeting- thereafter, .n.less previously removed hy a rcso- hition of the shareholders ii, general meelintr ; subsequent auditors may he appointed h> a resolulion of the compan> in |,'encral meetiuj,'- 89. Ihe said auditor mav he a shatcholdcr of the co.iipany , hut no pcrson'shall he eliirible as an auditor who is interesled, otherwise than as a shareholder, in any transaction of the cotnpanv ; a.ul no director or other officer of the company sh.all be elii;iblc duriim' his continuance in oflice. 90. The remuncrati.n, ot -.he auditor shall he fixed bi tlic companv in ^^eneral meeting;. 91. \nv auditor shall be eli^-ible for re-appointment. 92. 1-ivery auditor shall he supplied with a copy of the bal.ance-sheel, and il shall be his duti to examine the same with the accounts and vouchers relating thereto. 93. Kvcry auditor shall have a list delivered to him of all books kept hi the company, and shall at all reasonable times have access to the h.ioks and accounis of the company. 94. The auditor shall make a report to the shareholders upon the balance sheet and accounis, and in every such report he shall state whether, in his opinion, the balance sheet is a full and fair balance sheet, and properlv drawn up so as to exhibit a tr le and correct view of the state of the cotrrpany's affairs, and, in case he has called for explanations, ,ir information from the directors, or officers of the company, whether such explatiation or information has hee.i K'iven hi the directors, and whether it h.is been satisfactori ." BOOKKEEPING FOR JOINT STOCK COMPANIES. li-, Audilint Compiny Boob. In ii.iijiiinii,.,, «iii, ,|k i,.i,t;„.p„; diiusos IWrni llH. Om;irio l,-oinp;,i>io A. [ Ih.' .Mukiil ,s,,J,i„.Ji„ ,,,„| larefullv llu- Wloniiijr li»l .'f i.iMru.cioiis ;,s i„ Hk- in.ilu.J „l .,.„J„,li„K an .ludil iiuou'j from llic vianUarJ I-:m(;|:>1, „„ili ,.■. ilu- Mihid, naiiulv l)ickwi-\ " AllJiliiit;." ' ' ■ ' ■• 1. Ill lommeiu-iii^. a iK-iv audil i.ni ~luHikl ,.l>i;,i„ ., Ik, ,.| ,,|| ||,^. Ki,>k~ I -.pi, ,„ld ,ir all pcrMms authorized to rv^vh.. or pav moiKv or ordor ^'oods. J. I" the o.... ol- a joinl Mo.k co„,pa,n, ovMnino llu. ariKl... and hoard miiiiilcs rc^sp^-lintr tho r..,vipl a„d payntci ol ,.,o,.,.> ;,„J iIk- drauiiii; of clnMiios. ai-.i'plainis. ol,. .!. A.^vrtaii, and lako nolo ot iIk' k^'ikimI -vMan upon „l,ioh the- books aro ,oi,-lr,io,..d, and llu- plan ot olu^km- Ih. ,orr.vl,K.s, of tlu atconnls paid, and \i llt-thor o^iliisii i>l> or ijviKTallj h, ,Ik-4ik>,. 4. Koporl if tiK- aooonnis and voiKlK.rs aiv subniilk.J lo ll,c l-oarj of diri->.lor, bv an a.connl .-oinmitl.v or oiI,.t« is,., and ulR.llK.r tlav ar,- sJMi-matioally ollo.kvd and ,vrliii,.d : and not,, am disorLpaiuics. 5. lixamin,. all IL,- i,,.,,- in iIk^ lash Hook »i,l, il,,. bank I'ass Books and voiuhors, and pnl >o„r ,isnal .nidi, inilials in Ibo Pass Hook and to every item in the C ash Hook, .\seerlain if ll,e bankers' Pass Book is frequently entered up and examined. (I. Xole -my unusual or e\tiaor,lii pa\ meiits or reeeipts. 7. In regard ro the paymenls for ivajjes and pellyeasli, nole any unusual items and see that vouehers lor all pavmenis are kept and produeed. 8. Report uhelher a rouKh Cash Hook is kept, and uhelher the fair I'ash Hook is regularly and p.melually posted and balaiued and if the balance is eheeked. c). Keport also if the entries in the fair L'asl, Hook are in arrear, on aceount of the eurrent year, and if so, lo «hal extent, and «li). 10. In all eases where braneh eslablishnients are inelnded in one business, you will he careful to examine into the mode of brin^>ii.l; the returns of work, accounts and expenses to Ihe head oHicc. i» FINANCIAL STATEMENTS. II. i:\;imiiK' ill) lliL- l)ii> Hooks and -.tv 'hal tiK' prop^T rvliinis ot purv)iasi-s anil saivs aro made by caih doparti oiil. and that tht,- Houf^Iil and Sold books arc proport> cntiTi'd up ; that iIk- invoiti's arc propcrU vhcckcU as to quantities and priics ; obtain a declaration, or otherwise satisfy yourself, thai every liability of the year i-. bri>ii),'ht into account. ^2. The posliii^rs in ihc personal l.ciij;ers must be checked from the HouRhl and .Sold Day Hooks and the fash Hook, and also from the Hill Hooks and Journal. i;,. The postir}f,'s in the nominal or iriipcrscinal l.edt^'crs must be checked from the journalizinfi of the Hou^H)l and Sold Oay Books, the Bill Hooks, the Invoice Books and the Cash Books, and the mode and correctness o( the journalizing,' musi be carcfullv proved. 14. Kxamine the Hills Receivable and Hills Payable Books, and nolv any item oi past due, renewed or dishonored bills, and make list oi' same anu t>f the securities, if an\. 15. Kxamine the entries and transfers passed throujih the Journal, and check the postinf,'s ; and, althou^'h you arc not held responsible for the details of classificalion. il is desirable you should make anv sujfjjes- lion.s required, and note any discrepancies, especially in relation to the division of expenditure, on account of Capital and I'rolit and Loss Accoimts respectively. 16. Kxamine the Share Repslcr and sec that the amounts received for calls ajfree with the entries in the bank Pass Books, and that they are correctly posted to the credit of the respective shareholders in the Share Led(fcr ; that all transfers from the transfer deeds are duly entered in the Rejfister of Transfers, and also that the amount of the subscribed and paid-up capit.il and arrears corresponds with the Bal.mce Sheet. 17. Examine the re^nster of aP mortjjajifes on the company's property, and all debenture bonds issued, and note and ch^ck the amount of capital paid in advance of calls, and of the receipts and payments in respect thereof with the liank Pass Book. iS. In the accounts o\' stocktakinj,' see that all stock sheets and returns are duly sif^ned by the heads of departments, and that 'he same are correctly carried forward to the tieneral Stock Account ; j'.nd ascer- tain and note whether ^.'oods Hnished or in proj^jrcss are taken at cost BOOKKEEPING FOR JOINT STOCK COMPANIES. 1-.' prko or olluTwisc ; .,lvo report whether in lar^e coiucr,,. ;„. i.Kl.p.nJc.l illcck i.kTl< or i„h,or hi.s wrilkd Ihc ,lo>k returns in roK.irJ l„ prices and i^nantities. ly. In ehecliinK Hw I'rolit anU l.os, A.vounl. note whether ne iisiuil and proper UeUuelions are maje for wear anj tear and Uepreeiatio.,, and lor recouping' oleiipital on works or premises held on short leases. J... Take eare that in the Bah.iKe Sheet i,o addili.-ns are made to expenditure on Capital Aeeoiint exeept suth as are diilj anihori/ed bv the hoard of directors, and note the distinction between njw works and mere rcptiiccments. Ji. Ascertain whetlK-r llif anivf spCLiru'J in the afjrcoijient ^^f piircha' iiKc Jt'otls aiij oHkt securities and articles ofas.sociation have been duly exea.ted. and llie sums paid by the company on account of purchase have been duly endorsed thereon oi otherwise acknovvled^jed to the satisfaction of the solicitors or hoard of directors ; also that the existence and safe custody of thee documents has been duly certified; ascertain by application to die bankers the correctness of aiiy balances,' bills or securities lodjjed with them. 22. Ascertain the correctness of ilie -•curilies in hand, and lake note of everv c ish balances, bills ami other cptional transaction, " HXTKACTS FROM THE ONTARIO COMPANIES ACT. L II A I' ii; l< \l. EXTRACTS FROM THE ONTARIO COMPANIES ACT. ■ \\> ( i.l,Mlt>\ Ol I'lJI I I.Hl N riih unnn Itttl.nKKs IHK or sH -.HAKI-HlH 1 IKN l.l-ss I \Si» IPItMi ; in K I o\n' wn v nvw* ut Additional Extracts, lo ,i<.Miiioii i,> iiK»>,- p,>ii:,.iis ot iIk' i.>tit;irio i.ump.mii- \.T vi.ioK'J \u tlu' ptv. 'ilinM |Mi;.->. (Ik- ;i.>oimt;.iu'> NtiiiU-Ml is >lri)ii);l> iviOinnK-in,U.il lo t;iinili;irr/i> liinisclt willi llu- i\ir,i,ts \\W\cU lullow. Those t.lo>irons vi ohliiiiiiii},'- ;i thoroiij^li ;iik1 i,.iiipl..K' ixpositioi) i\ liii'li I'l'iii s i'p^TillO ill llUlil not Jo .■iiT.vl\.^ or i. .op^ ol \ViirJt.'\ "ShiiivhoklvTs' ;oul \\o,k whi.I. shoiikl K- in tiK- oflKv of o\cr> Joint of llu' \ arioiis ai'ts i better than po'-vc^ Dircitors" Manual.' Slotk fonipaiu . Cancellation of Preference Stock. SLttion i> oi iht- said .\ii was ainoiulcil .Mh April. |(j«k>, b\ the aiUliliori of ihe lollow iiif,'^ siib-seetioiis re^'ardiiiy- the laiKellalioii ol IVeteiente Sl.nk : Hi) The directors ol a L-onipain which has herclofore isMied or niii\ hereafter issue preference stock ina\ . for the purpose ot caiuellinf,' such preference-stock or parts thereof, from time to linie. pass b\-]a\\spro- \ tUin^' for tb. purchase or acquisilion by the company ot such stock or parts thereof uith the consent of the holders, and for the cancellation i»f the stock so purchased or acquired, and for the reduction pro rata accord- ing^ to the amount of stock so canceMed of any reser\e set apart, or required to be set apart, in respect of such preference-stock, but no such hy-hiu* shall be xalid or acted upon unless and tuitil the same has been sanctioned by a vote of at least two-thirds in vahie of the shareholders of the company present in person, or reprcseiiteil by prow, at ;i speci.il (;en- --al meetinj; duly called for consideriiij,' the same, and unless and uiiti ach b\-lau has been confirmed b\ supplemenlar\ letters patent. BOOKKKEPING FOR (OINT STOCK COMPANIKS. i.,. i;i M .i..> iu,„. „„i „„„v ,),,,„ ,„,,., ,.,„„ii„ .„i.-, ,iK „ „ MHl, ln.|.,„ h, , Ik .l,,„,|,„M,.,, .,.,,„,„,,,„ ,,„,„,,„„ ,„ , ,,., "" '*""■" -' ■■ I •!■ II «l, .lu.r„n,„.,„l v.. '..,'"!" """"■ "'"'I"- > '-'"■ ."•".. i 1..,,,,/ , '■;'■"" '"^'■"- '"-''■■ -IV>.v,.n , „„ , .•llp,>-r .,^ ,„.,, w ,I,;„K>J h, Inin l„ ro|ioM ll,>r,.,.M. Ilu- ,li„' n ,„ ,^,i. ,„ | '■ ' ">■'-> "I"' ^. l.J. ,I,.„-,KU., ,„ ,„_,„■„. ■ lV„.„p„M llK l..-N...„„„|.(„„, .,■„,„■ ,„ t„,„„.i| ,„„ ,„ ,„,,|.„, ,, ''"'■'■^ ''^"'"' '""' ""^ "j-i-". ...Ki .".,,. u„i, ,i„: :..,w,.,H'lT,i""ii!!'!r!i ""'"■'■'""'-"' ""■'■ n-V I" II'.' Pl.-nu.,„.„-, K.„.„. ,,;„„„ „,J ~"'''' '""" ^ '■ ' " "'-'■'■• - ' " "-> -V.M ,v- - ,,,,. ' ■■""" '■"'■•■"" npi-"-M.„-, I.,,,.,,, ,,,,,.„, h,-i. ^'"^ '"' """'^ "'"'"i-- ■•< -" . >iw,M h>. V „, „: ,„,,,,, '"'""■ ^ -iiiu.^M r.„ppi..„K.,„.,,M.,u.,-., .,„,i,.ii h,.,.i«.„ h. Ilu- l',.n„ui;,ISv,vl;,r, i„ ,1,. li;,..„.. Uicof tht Word "Limlteil" s.vt„.„ .., „f ihi, \.i ,„ ;,„H,Kk.j ""•■'""' -^i"''- """•' ■''"-'i'^' I «i"K .I...!-.. .v.n.vii„t'iiK. „.'.'', IlK' MorJ ■■ l.imn.J": (I.) WlK-,VVor ;,„, ..fVu . ,„■ nl;,... i„ „ |,i,|, Hmmm.ss ,.| ,1,.. ,,,M,p.,„> '- i-.irrn.J oi, 1, .mli>;iioil h> ,„n ,i^,„, „,,„„. ^,^ j„|,^.,, ,,,^.,^^^^ ^^^^ ^^^'^ 11, ni."i .'I niisiiK>,s,.l tin. .oriipiMU. iIk' .iMiip^mv -''■•" '"'^■1' '" '' '""-pi'" pla.v >.,, ~,Kh om,i,k, ,„ |,.„,.r, ,,,.,u |,^,ih|, .h. „.mo ,.r,lK. .,.,„p:,„,, „i,|, ,„. «.„■,; .. |.i,„„..| ■■ ;„ ,|u. l;,M\>orJ „,' ..r .. ,lu. lirs, „>.rd .„,.., mkI, „.„„.. .„cl ,1,. „.,„. o, ,1,. .o,„p.„„ „„„ i1k> vu.rj •■ I.i„„K.J " ,„ „,,, |^,„ „,,^_| ,„. ,,,. ,1^^, ,.^_^^ ^^^^^^1 ^^^.^^; ^^^^^^ "■".,., slwMl ..pp.ar i„ ., ,v,>.pK.u„n, ,„.M,i„„, .„k! i„ k-.K-r- \J,h k■^'ihk., ('/) '.In Ms i\.rpor;itf svmI ; (*) 1.. all ;KK.rli,..,„,nl, ;,„J o.,„ „r ,|,o (.) l"allhilKolp;„v.ls,„.;,u„k,,.„,lK. oo,„p;„n ; Wl In all urill..,, .a.„Cra.-l, ami ,„uk.,taki„K~ of .l,c .ompa,,* ; (.') Ill Ilu> co,iipani\ sij,'i,aUirc lo any bill of I'SohanK.'. promissory iu>i>'. laulors^.iiH-nl, c-lKiqm', orikT for moiK-> or Koods. i t ' «• EXTRACTS PROM THI ONTAKK) COMFANua ACT, (J.) It •.lull K IlK- J„u „| ,1,, ,|„,,,,,„ .■mpl„v.>-,.l 111,. .,„„p.,„i „|,„ (") I'liblisl,.., ,„ ,.,„„^., ,„ ,,_, |,„|,,j,|,^ "iluT olli. i„| p„hli,.,ri„i, ,. '*) "••'" ..." K. ,„ ,„ Irutiii'v. ; (■) .M;il(i.> „n MiM Hi flu. ,,„„p;,i„ uinK.rlakirn' ; „r il'.iruici.r. ..irn'cr ,.r ,.CIk 1. It .uIii.nisv.iiK.iit I'll hill ..f p.,r,,.K (•/' S,t-,is in iIh ptnTiii'isiir viidDrsinu-Di. .I..HN tot I" ".mpl. «i.h ,h.. lor.^viM^, p„vi.i„„s ,„ ,|„ „„„ ,. . , , , -M.m. ,1,.. >.orJ ■■Co,„p,„„," ..a„b" .. \«,,.i '■-"''•'"'■■" ::■;•"-- n .11, t.Jz:2::'::zz ^~:::ri.r:;::',;r;:..'v;;rr ^:'' ^'^^-^^ -"'^ sullici .,„ P • , , •"■' ""■ '""■' ■'"'' '^'^' 1'"^.--. -lull IV ' """ "" "l'"-l-" >v.rd, Uoc, „o, lorn,' ,;, .,■ ,„.... '"'""" "■■""' "'^' »""1 •' 1-nm^-d •■ shall appear in full .n , ,■ s"hMantiallv ,h. .am. m.. ,. ,„, , .„ ,■ Z '"" "'"I '" I''""- "t "p. ),.>ods, «aros and nicrdunUiso „r ,1,, omnpanv ,- , ^.Ulainin^,,,. .an,o, shall ,„„ h. .,.e„, ach .n,s..„, ..^ , ^..^r nu.annij;.,! this st,ii„„. ' ""= (}■) Kvorv company and ..,cry Jiro.lor, nunator „ffi ■ -r , „ .>.::":;:::-::;,:•,,:----■-----.. under .his ,...,i„„ ,h.. .ff,„u„ „ , ^ ^^ '" '"'" '""' '" "' "'''■""• under ,hi, »..,i„n shall i JT r^r^'^^'T '°^''""^"" dollars. '^ • '" ""••■'I'ni,' one hundred (4.) This 'c'tion declared .0 be exen.p, Irom Ihe provisions thereof or to anv company not havinL- .-ain for i,< „„„ c- ■"'•' ■---n.-^n^o^he.en;::r::r::ti::r;s:"r BOOKKHEPING FOR ;onST STOCK COMPANIES. "•■■"'■'' '•■•'— "..„., ,„„... „r.l.. ,„,.„.,,. .,„ Miloun.il,,, ,l,,„ lvh.,lt,kvl„r>-,l,o Kvv.mpl. ' ' ' "" Stock. CalU, Etc. s..,,,,,,. j„ ,„ i,,,,,,,!,,,,,,, "■■ ' '-"■ '-'■ ■ -r.vi.,, ^ ., ,_, pr.nisu,,,, ilu. ,lw,r>., ot ~i,.. I, „r ,1„. , „, ,,„„ , , :;;;::;:' ";>-"^""'-" ■ :-::*■;:„:.::;,:;.::;;; '"■ '■'"■-"■"-'•'^>.vk K. .,„„,,.„„ ,,,„, h.. „,,,„,, '■^'■"- "-'-.N.. „„ „K. K.,., ,„ „. , ' T'T '■■ -'"""" '"■"" -,i,n,: ; •^-^'■•.-H,n.„.„.„v, .,.,„. ,. , '■l.i- 1.. ;,ll,.« ,lu ,„1,,, i„,„„ „„|, I I, f -!.•(„ uluiv.l il„ „||,.I.> ,,i.,„i,„i l,.,s „„ ni.iilo ill -iKh hook „l ,im Ir ii„i.., r;;;^-", :•""■■ --.i.,. , , "il: Miilic.ilry, «imM i,.,u Ivc-ii • Inn il ,,„ I,, . :::::""■•"■'■ ^-- >":'M::,::,;;T:,;;:,r;;;:: -- l..t... ,. „„ ,,,„,„,., s„„,„^, ,„ ^ ;^ not olIUTwis... .xmu-n.u- hi„,»„|f fr„„ ,,„,, ,. ,^„.,^ -•■). \o .r.i„i;.r of shares of s.o.k. unless mi.dc I,,. ,.,,, „„. -e.ii,ion, or under .he order or jnd,-n,e„, of some .on,p..K.„, ,o„,, , ha, Heh,„, s|„.n h. valid .,r an, purpose „.|,„,e. .ll, [:Z::Z iiif,' the rij^^his oft Hie parlios theret. i.-'feree liable.,/,/ Iv tou;trU> eiu'li oilier. :i..d ;,> rviidoi to the Loiiipa /w/rnVw, jointlv and h ill the books ot' the ipany and its ereditor: ■ornpany. severally with the tr; until entry thereof has heen d .V- No sliiire shall be transfe have heen full ealls thereon. arable until all ly paid in, or until declared fori* Inly made previous ^alls thereo iled for noTi-p .V. The company shall not be bound trust, whether express, implied lo sve to the exeeiitii or consiriHtive. in rcipCi-; •iharc- i n- EXTRACTS FROM THE ONTARIO COMPAi J ACT iuiil <\w r«vi|.t of Ihc >h.-,rcl.WUor In uhoso nanu- ih,. >^„n.. m„„j~ ,.„ iIk b..„ks of the con.p:,ny sll.,11 K- ;, v;,IhI ;„ut hiiulinj; di,,|„„t.>. ,,. ,!„■ u.ni. p..,> for ;,„, JiviJ..„d or „U.M.-> pa,., hi,- i„ r.-.p,.,-, of m„I, ,l,,,r,., „l,cllur or „ol „oti,v ,~f ,hc lr.,„ h;,s 1,,,.,, j;!,,,, ,„ „„ ,,„„p„„ ^ ,,...! Ih. '•■■""l'^"'> -'' "" I'-' >"•"" -"■ 1" 'l- ;,ppl,c;„i„„ ol ,1,,- ,„o„., p„,l lipoM Mi.l, r,,vipl. ,1-'. Ill,- ilir,-,Cor, ol il„- fompanv iiiiiy ,iill in and ilvinaiid from Ilu- •,h:,r,.hold..rs ihvreof, r..»p,v,i, ely, ,h.. amoiinr unpaid on shares of M.vk h> lliem Mibs,rihi-d or l„.|d, al s,i,h liii,,., and pla,,'s aiul in M„.h pax- rnviils or instainu'iits the 1,11, ■s pa Ihi- Alt. or the h\-la\vs of Ihf tompanv rcHuiro or alio,, : and inlerosl shall a,,ru,- at tin- K-^al raic for Ihs- linu- heiiiK. upon Iho anionnl of any nnpaid ,all. from Ih,- d.-i, .ippoinu-d for payini-nl of siuh »all. ,;,!. XiM less than ten per eenlnni upon the allotted shares of stoek ,.f I he company shall, hy means of one or n.,..e .alls lorinall, made, be ealled in and made payable uithin one year Irom the ineorp,.ration of the eompaii, ; the residne ,,hen and as the h>-la«s ol the eompaii, dire.t. liabilitia of Shareholder!. Seet III Kaeh shareholder, until the \, luile amount ..f his sh.iies ,>t st... k has been paid up. shall be indi, idaall, liable to the eredilors of the eoiiipan, to an amount equal to tha, n,.t paid up ihere,.n, but sl,,,l| not be liable to an a, ti.>n therefor b> an, eredilor before an e\e. Litioii a^'ailist the eompany lias been returned unsatished in ivliole ,.r In part . ,,nd the amount due on sueh exeeiilion. hut not be, ond the .imounl so unpaid of his said shares of sloek. shall he the .iu.omiii ieeo,eiable „iil, ,,.sls af,'ainst sueh sliareh,>lder. IJI An, shajeli.hler ma, plea, I b, pan, ,111, sel-otr uhieh he ,ould set i| ,l,iiin l,,r unpaid ,li,ideiuls. ,,r a salar, iiireet,,r ,,f the .I'lnp.ui, . i,.l, of ,lelerie ait.iinsl ihe e, iihole , npaii, e' . presi,le 1.11 The shareholders of the .ompan, shall not as sueh be held responsible lor an, aet. default or liability „l,atsoe.er. of Ihe ,„mpaii>. or lor any encasement, elaim. payment, loss. Injury, transaetiou. matter or thiin- uhats.vver. relatin^r ,„ or eonneeted leith the eoiiipau, . beyond the unpaid amount ot their respective -hares in the e.apil. ,k thereof. BOOKKEEPING FOR JOINT STOCK COMPANIES. ILi Dircctori and their Powers. Se^iioti 40 to \,, hulii^iw-. 40. I'hc affairs tif tin.- company ^llilll W rn;maf,'i-t.l h\ .\ hoanl .'I nol less than Ihnv direilors. who sli;ill he ^l^vioJ b\ ilu' -.liaivliolJoi > m iTi'iu-ral nuvliiij: 0I llu- loriipaiiv ..ssi-mhkJ at sonii,- phu i- luthin ihis proiiiuc. 41. rilv persons iiailK-d as pn'v isi..iial liin.tors in i|k spivial \v I or in the loners paleni shall be thv Jlre.ior^ ot !!.>■ .om|...ru. nrilil repl.uoil hv ollurs Jti'y eUvieU in their stead. .(-•- \o person shall hold otlue as a direttOF unless Ik is a sli.tn- holder ounint,' stoek absolutv-l) in his o\wi riyht . and not in arrears m resp.vt of an> .all tlureon. and HJiert.' an> person uh.- i- a dire.ior eeases ii- he a bona fide ImkUr ot stoi k in ilu> ..^mpanx. lu shall tluti- upon eease lo be ,i direelor. 4.;- Ill The eleelion ^^i direelois .l.all t,.ke plaee at the ..nnnal nu-ethif;. idl the inenilvrsolr Ik- board ivl iriiii.'. and I it other w is^. i|,ialilKd i beinj; elij;ihle tor re-eleetion. (Jl KUelions .,1 direelors >h:dl be bv kdlot ; l.il Ihe directors shall. Iron, lime lo l.nu'. v leel Iron. ..moni; ilun.- seUes .1 president ol the eompaM> ; and >hall ;ds.. „an.e. ,ind ma* ivnuM.- (4. It at an> lii lake erteet al ihe r"o dissolved; but Mieh ele< eleelioii ot direelo 01 made, or does nol shall nol k held 10 be thereby ake plaee at ; al.neeiinuoMlK iipan> duU ealled lor that pnrpose : and directors shall eo.itn ^X ( 1 1 \ . (j) Nobv.kov. I. upon nides^ n has hei in value ol ihe shareholde ■ t oinp..n\\ head olVu ithei ol iIk ...Id I shall Iv \alid or aeled .d b\ .1 vole ol 11, ,t less tl] eonsideririt; ihe subjui ol the b\.la«. nor ui lified under itu- seal ot the eompanx , has K^ )aii l\so.|hirds npani dul> ealled lo. II Iransinitted lo the l'.o\iri- alsi'. has K'cii published h\ the .•i>mpan\ onei- in the I -J EXTRACTS FROM THE ONTARIO COMPANIES ACT. l.t) 111 ..IS.' Ilu- h.Mj oltuo ,.1 rlu- ...mpMIIV is Inll.H .hl.llKvd .,« ;,l,„... s.ml. llioii ll„. ,,>nip^ii» shiill f,.rlli«iMi ^.ii,. ,„„i,.,. ,„ ,!,>■ I.u 1 in su.li iu«s|wpi.,s ;i,ul lor Muli liiMo ^i-. 111.. r..t'ul;,li,.|,s ni.i.l. uiul.i ..-.fi,,,, , , .'I Ibis A.i m.,. pi.-s.rib.', 4'.. ri-v ,l,r,,l,.,s „| ,1,.. ,,„„p.„u .,1,;,|| I,;,,,. |„|| |„„j,., „, ,11 ,1,;,,^,, !.• ..JiiiiniM.i 111.. ;,lla,r, ,.111,,. .■..,iip:,i,. aii.l ill;,, w:,kc. ,.,.■.,„„. M K- 111.1,1... 1,11 111,. ,,.iiip;„i>. .111. .l..s.iipii,.|> „| ....iirr.,.! „|,i,|, ,|„. ,,„„p;„„ 111. I, hv l;n\ ,.iii..r iiit,>. 17. II,.. .Iir...u.i, i„.,v, |r,„„ ii„„.,„ ,i„„., „,.,k,l„.|.,„, ,„„ ,„„i,.,r, <■' 1,1... „r 1„ 111,. I..,„.|s pal.iil ,.1 ,1„. ,„ „p„i,.,„r „.llii- \,.|, ,„ ^^.u!;...-: '«! ri,...,ll,..„„.|„„l,i,„-k; ,1„. „,aki,,t „l,.,lls ll,..r..„ii: ih.-pi..- 111,111 lli,.r..„r: 11,.. torlViuir,. ,il ,i„i.k r,.i ii.„i.p.,vi,i..„i ; ,1,.. ,llsp,iv,l „r |„rr..il..UM.vk ;,i,.| „f il,,. p„„..,..K ||i..r..„r; l|i.- iriiii,!.., „| ,i„,.k ; ,/') II,, ,1,., 1.11 II (.) 11 .111 ,,r Jivi.l..|i.|s ; nil ,11 „.,vi,... ii„l .,<,....di,ij; i,.„ ,,..„.^, ,„„] ,1,^. ,|„,„u,„ „|. 111.. st.Kk ,|ii;iliri.-.iti,iii „( 111.. Jir...[,,rs ; •Jl 111., ^ippi.iiiim.iil, luii.li.:ii~. JiilK, .iiij r..|ii„v;il „| ,,|| ,.|r„...r>. iitfciils .uid «..ri;inl~ of lli.. ...mpaii. ; tli.- ^..curil; l,i b..Ki>..|i .. Ih.-m ui Ih.. ...inipany : iitid their rumuii.'rali,iii ; .>! Th.. lim.. al ..hicli. and pla..- »hiT.. Ih.- ^-.-n.-ral inoolin,;, „t ih.- .-■,impan\ shall bi- h.'ld : lh>. .alliin: ol iiu'oImihs. ri'j;ul.ir and sp...-|at. ,il Ih.. Kiard nt dir.-..li,r>. .ind i,t ih.. .ompaii. ; th.' HU,inini : ih.. r..4iiir.-ni..iits „s 1,. proxies ; .iiul the pmcediir.. Ill all thing's al such m.-.Min^'s ; I n Ih.. imp,isiti,in .ind leeovor. ,.l all p.-nahies and l,irl..il,ir..s ad- niittiii^' ,11' r.-^'iilalion h> b>-l.n. ; and ((■) 1 1,.. ...iiidu.t in .ilh.r p.irli.ulars „l Ih,. aHairs,,! th.. cimpan. : .Hid n,a> lr„n, lim,. I,, lim.. r.p.al. aiiu-iul, or r.-ei,.!.! the .an,..; hut e.er. su.h bi-l.,«, and even repeal, .imendmeiu, „r re-enaelnient thcre- ,'l. unless in the meantime ,„nlirmed at a t'eneral ineetiiiK „l the ompaiiv dul> .ailed l„r that purpose, shall only ha>e loree until the lie«l annual meeting of tli,.,„npai,> ; and in default of ..onfirmalion thereat. «hall. al and from that time onl. . cease to have force : ind in that case no ne,\ BOOKKEEPING FOR JOINT STOCK COMPANIES. I i, h>-l.i« lo ilio S.U1U- or tlu UWk- .tkvl -UaW ii.uo ..n> l...v.. ti..nl ...ntirnu J .11 ;i (ji-iuT.iI tiK-v-rii ^ <\t rln. iomp,iii\ ; prov i Jed lu'woi^i , rh..( iIk' com- pany <.li;ill hiivi- povwr -iihiT .il tlu- y^viur.il iiH..I'My, i.ilkil .i-. .iroi.s.iij. oi at IIk- am. ,al mi-L-liiii.' iM ilu- lompaiu, i,> t\pe.il. .mikiuI, v,)i\ oi othtTwisi- ilciil witti an_\ b>-l.i«s » hitli haVi.> Kvn pa-sod h\ tlu- JirviMoiH, but iu> ai-r doiK- or ri^'Iit iu\)iiitid umkr aii> h>-l.m nIi^iU K- pivjuJici-ilU adVilid h\ .iri\ sm li rvpiMl. .iriK-ndiTUiil . \ariiiii,iii o- ollur di-aliii-, 4S. \,i h\-l;m lor llu- p.miK-nl ,it llu> p'\sidi-iil k- .iru I'ir,. lor. -.iMil K- valid ora.lai lip.Mi iH.hl lli.. ...,iu ii..s Ivii, v.Miriinw.l at ,. c^''K-r.il mfi'liiij;. »(,. Il aurlu>riA-d b\ In -Km . pav,..i| !m iIu- Jiiv^ I,m . .i.id -aiKlioiud hv ;, \oU- of iiol icx> .Imi, mo-lhinK •» x.ilii.^ ol llu sliaivholJci s pr^.^m in pvr>on or h\ prox> al a ;;..K-ral nu^rin- ot llu- .ompaiiv diilv ..ilk-d for toiisiditiiit; ihc siihiivt ol •.lull M-!.m. tlu' dir.vlo.s ,.f liu- vO'tip.my iiia\ : 1(1) iiorrou inotU'v iipt>M tli.' ..udil iM ilu- iomparn ; lAl l.imrl or iruri-.is^ ilu' atnoiinl lo Iv horrow^d : (< i tsMK> llu- bonds. di-KniiM.-s. or otlu-r so 'or llu- l;i»tiil piirposi-s ol itu' .onipa ma\ pictljii- or sell tlu- siiiiu' t.r |(u' | of the eoiiipant . VotCI. Seelioiis .,; ,,„d t.4. 0.1. At all K'vner.d meetin^.'s ol tli,- ^.-i p.„M. e\er\ shareholder shall bv eittilk'd Iti as mam votes .is he holds sltiires m the .omp.im, .md iiia> \oIe by prttw . 64. \o shareholder heiny in .trrear in respeei of afi> >..i\\ shall IH- enlitled to \ote at .my nuelin^; o( the .ompan\. -•t,_. ! i I »i EXTRACTS FROM THE ONTARIO COMPANIES ACT. Contracti and Uic of S»l. .Siviu..iSi. l-.>iT> ,vnlr,i,l, ai,T.vm.-,il, >i,i;;,^.>.„i,iil ,., h;,r hill ,>f >.«>hanK.. drawn. :uv.-p,..d ,.r „„lor^...|, ;„kI o.rv pr,„„is,or> ,uM. ^".U .hcqu.- ,nad... dr;,«„ „r indorsed on hcl,.,ll „l llu- ,,m,pan, h> ,,„> "'•"■"'• '""'■'■'• '" -"'■' I ""■ >.'mpa„i. in ^...„,r;d ...vordaiuc «iil, l„s po^..■r^ as s.uh ■ ,; ,1,,. ln-l.,„, „r ro.,.lulio,„ „l llu- >,.„.p;„,v . ,l,;.|i K- binding upoi^ llu- ,..„,p:„„ - and in no .-.isi- shall il K- ,u-..-s,an lo liav.- llu- seal ..I llu- ,..inpan> aHixv-d I,, am „uh ...ntra.l, afc-rc.-mc.H, .-iiua^'cnu-nl, K„„;,in. hill ,.|\-^, hanu^-, promisson lu.u- or , ii, .ino, or ui prow llial llu- sanu- «a. ,.,ad.-. dra«„. a>,vpl..d or indors.-d, as Ihc ,-as>. '"■'■' •"■■ '" l'"f-"-'"'V ." -."> H--la«. ,.-,.1, , or -p„-ial or oid.-r ; iu,r sl,..i| ilu- p,.rson so a.lin^ as .,^.;„. olli.vr or s.-rvani ol llu- .0111. p.no. ,u- llu-rc-h, s„b|,,u-d „uli> idi,all> lo a,,., liahilii> llu-r.-lor. Purchasint Stock in Othtr Campania. s>,iion sj. ■'■'" ' "" ^"■'" ""'I- -- —"■"--. a„> o, ,ls 1 ,s '" ""■ ■'— " -"vk in a,n olh.-r .orporal.on, , ss and „n„l llu- ''"■'•'""■- "'' N'r.ssI, i.,d M „ „,.,,„ p,,„„, ^, „,,,„, , ,^ ""' <"" ""' -'""i'-'^-J h> a vol. ol „ol l.-ss llun ,„o-ll,irds ,„ ,al,u- 01 llu -l.arohokU-rs pr.s.-nl in person or h, prox> a, a «.-„,ral ,:u-.-linK ol llu ,oinpan,> dniv .all.-d lor .onsuK-rn,„ llu- snhj>->l ol llu h,-la,v. Loans to Shareholder!. Seel ion .s_j. Vo loan shall K- made h, llu- , on.panv lo l,.,rel,older I, -neh loan ,s made, all direelors and olher ollleers .„ ,he eompan, m»lrers, "l''"'> -I'-'ll I'' > -„,d several!, l,.,hle lo -rvanl. and iipprenlie.-s Ihereol lor .,11 dehls nol ex.eedinf oiu- >ear , „afes dne lor sereiees perlormed lor Ihe eoi„pai,> uhilc lliev „r,- sneh direelors resp»-e.ivel, ; b„l no direelor shall bv liable 10 .,i, -ulion Iherelor. nnless Ihe eompa,,, has been s„ed Iherelor uilhin one .IMr aher ll,e debl K-eame dne. nor , el nnless s„eh dire, lor is ,„ed BOOr KEEPING FOR JOINT STOCK COMPANIES. )iMr iVitm the lii ilireiior. iu>r ji-l K-tiiri.- rolunioj tin-itlistivU in whole ■ cxvviitii.ri -,11.111 b<. till- .iituMi cxvMitioii a^'innst tlu' ■iinfr;ihli.' with Shareholden leu than Fi. ktl.'ii In II .1 i.Mn|i;in\ . ^irrK- on huMtiv^s v\ livn tin mmtlvr or il- -h.irv- hokUrv In U-s th;m ti\o lor .1 [xrloil ol -ix inoiillis .irr^r i\w iminK 1 li.t- IVi-.i so PViiiKA-il. oM-n ]vrsori \* ho is ., sli.,ri-lioldor in tlu- ,orii|i.iii* Jiiriii); llu- liiiu- tliitl il so *;iiiiison biisincsx ;iMi;r su. Ii |Vi lod ot siv moiillis ;i,ul is a>«-iii/;inl ot ilu l.i.l ili;ir il is so »jrr\iny on hnsiiKss ^^|lll k'ss tl,.,,i rl\.- sh:,ivhokKTs s|,;,ll K- sv\i,.r„ll\ li^.hU. toj tlK> p.oriuiii .'i llK- ^,UoU■ oi\\w J.-his ot tlu- .oMip..n> .ontr.i.l.-J J.uiny s,u h time. ..lul in..> K- siu-il tor tlu s.,Mu ^viihoul tlu- loiiuKr in t!u- .Klion or ,i„i ol tlu- -omii.iiM or ol .,ny otlu'r' sli;.r i-hokk^i" ; but .m\ sli.nvliokk., u |,„ |,,,, Kionu- AW^itK' lh:it the ionip.m\ is .;oT>itiy ,ni hnsnu-ss « lu-n rh. niimhiT ot its sh.irehokkrs is kss ih;iri liw. rn;t\ serve .1 protest m wriliiij,' on the .onipan\. .iml in;i>. N reyistereil letlet, nolitv ihe I'ro- viniial Si.vrel.ir> ot siuh protest liaNin^: been sorveJ. ,ful ot the r.uis upon «hkh rt is haseJ. inij sueh sharohokiei ni..> ther*.-b>. .iru! r.ol ollii,Twi>e. Irom the date ot his >aid protest and notilieation. exoiurale htmselt Irom liahilit) ; ;ind it .iller imliee from the Provincial Seeretar\ the eoinpain reliises or ru-«le,ts to bnili,- the Mnnrber ol its vh.irehoMei s up 10 live, siuh retus;i! or ne^'leet niav. upon the report ol the IVo\ mk ial Seerelarv be rei.'aided b\ the l.ieiHeiianl-tioveriu«r in (."onn.il ..s suMi- eieiil i.iiise lor the revoe.ition ot the eor,ipari\\ ih;irler, SELECTED EXAMINATION QUESTIONS. I II APT KK VII. SELECTED EXAMINATION QUESTIONS. The Inititute o( Chartercil Accountanti of Ontario. «hiih appear in litis itiaptvr ha\i' b. and Kiiial cxa rill- i|iK-siii>tis 1 ■-I'li-itoii Irom iIk- Inu-rniciliato iniiiau.'ii papiTs scl hv the liKlilute o( lharlcri.-d Aic.ninr. anls „f Oman., during- iho lasl thrci- vi-ars. Thv sliidL-nl »ho has lhorou(;hl> maslercd llie pnvvdinj; pa^i-s slu.uld expcriciiCL- no unusual diffioully in wriciiij; his answers. An exceedinnlv vahjahlc work, which •>hould be in the hands of every person who concemplales ivrilin,; on an. nstilute examinalion.s is the •■ .Manual lor Aevonntants," hv Mr. C. Kddis, K.f.A., President of the Institute, Volume I ol whieh oiilains the ...mplete i|uesllons and answers for the .vears i«.i7 and d \olnrae II those lor the vears iH,«, to lijoi inclusive. or th, Will l«<)K. QlKsTH.x I.— Stale Ihe principal points requiring the special at- tention of an .\udilor ,,i the first annual audit of a joint stock company :— (II) Where a foiuK business has been taken over by an a^'reement ; l<) Where a factory has been erected, ecpiipped. and business carried on since the inception of the t'ompan. . What hiH.ks would the .\uditor cspe, with the above transactions. iallv connection ginsriov j._,\ soap company undertakes to ^-ivc cert.ii,, "pre- miums" on the return of its soap wrappers, Premiums and wrappers beinK determined by a printed schedule. How would vou tre.it this agreement when preparing your Balance .Sheet.: giKsTlON i — H.iw would vou show the following; accounts in a Balance Sheet : — In) Reserves for the depreciation of plant and machinerv ; BOOKKEEPING FOR JOINT STOCK COMPANIES. l.w ifi) I'unision tor biij lU-hts I' 1 l>ro,i,i>.|, lor .;,x.-s, «;,«,.,. ro,l ,., inOus, o„ morl^-..^-.- | (rfl rtuli\ul,.'d protil from rlu' pn-^-iiiin;; (H-riotl. IJl hMI.iv ^. Vou .,r,- K.ok-k>>|Vrlor;, joiiil Slo, k t omp.o.v ui.Jor Liu- OilLirio I oiiip:,„k.> V.i ,„ul ,1 .iisloiiu I ol llu I omp;ou d,i„.i,KU I,, si'f lltv book^ of till' loinpiiio. (.;) Wlul hooks iioulJ \k K- .MlilUll lo s>, ,- (*) IK' ik-siri- to l.iki .ylr.uls Ir luiii ; t.,,, |u Jo so - UlKsllovj. Tlu- m;,iw,t..-, ol ., Ir.iJini; lomp.„n. i,„orpor;,u-d imJor Ihi' Oiiliirio fomp;inics A,l, iiilorms lUc .mdlior 1I..11 ho hiis p„r- .h;iso.llorlho lomp.,,,., ■„, sluros i„„„o,iKr .ompi,,,,, ;„ul ..sks lor i'. 01" »h,il nnisl ho JoiK- 10 ni.iko Iho purili.,so lof.il, (ovo llio Hio il mom utaotiiriiij; Comp.iiiy. I.ui,, toiiip,ni\ 10 .1 sliaroholUor ho liikoi, .,s soiuritv. Tho (Jl ksiiOV I.. llu prosijoiil of ;i M.i offors a k>;nt of Sio.txw ^ii ilu- funds ol III theri'ot, the borrow or's promissor\ notos It aiidilor roporls injainst llio Ir.iiis.iolioii ; win .' yiKsriov;. l-„d>.r Iho Onlario CoiLpaiiios ,\ol ; («) k'iw- ihc loasi „„mK-r of sharchoklors a oompam oan ha>o. (*| loasl luimber of diroolors, (,| how km^ oan diroolors appoinlod in l.ollors PalonI ooiilinuc ill offioo, (rfl how aro diroolors ,0 ho okolod, ,o| oa„ a sharoholdor who is in arr>-ar, for oall on slook. v olo al an> spooial or annual moolinK f yrESTIiiv K. A I.imilod l.iabilily Company has ,ssnod Dobonluros, 6 per com Cumiilalivo Proforonoo, 5 por oonl IVloronoo and Ordinary Shares of Slook. Iho Rooniio Aooounl for Iho yoar show s a loss of $5011 aftor pay ii,K iho InlorosI Coupons of tho Dobcnlnros. How would you show tho liabilily of Iho Company on ilsSharo Capital in Iho Halanoo Shoot and ii< what mannor would you show iho oontiiiKonl liahililv in Iho aooounis i* yiEsrioN.,. -Iho Diroolors of a Company inoorporalod undor Iho Onlario lompanios Aot ha>o passod a by-law to inorvaso Iho oapilal of Iho oompany by issno of prol'orenoo slook. Dosoribi- Iho proooduro to do so. Draw up this by. law (or by .laws) and mako provision that tho sharos lo bo issuod shall bo proforrod not only for di\ idoiid but ..s ro^'ards oapiitil. >^> SELECTED EXAMINATION QUESTIONS. yiKsriON n>. — Wliiil is n-quircd lo niakf it transtt-r o1 shan-s kyal i* What arc ilic UutiL-s ol* Jircctors as ri'^'artls traiislVrs t (JiK-Tiov 1 1. Hricdv L-nimu-rati' thi' duiios ami poui-rs »if ilin.'*ti>rs iirjoiiil Stoik fumpanics. QlF.siri>\ I.'. What ari- llu-niksor rcstriitioiis iiiuliT tin.' l'i>ni- panti's Aits as to : (r/) I'urL'hasJi)^'' sttKk in ;iii\ nthcr corporation i* (A) l'aytrn.'iit of di\ tdviui .- (r) Kirndiiit; nionvy to Shar^OiokkTs •■ iJlt>TioN 1 1.- l!o« ari.' tliL' borrk»\\inj,'po«(.rsot aiiTporalioti uiuk-r '\\w Ontario lompaiiiv-. \<:\ vxiTtisoil 't tiivc all iKivsvarv n-qnircimiits to tiiaki' llic horrowirij; >^\\ llic pari ol -lull a forporation ioj^al. 'Jl Ksrio\ 14.— Krofii iIk' loilowiiif; infornialioii tnakf I'lit a Sliii)f,'k' Maiiiitai.liiri'r\ Tradiiiti actouiil : Sliiii^'k' tiinbtT on hand al hf^jinniii),' y^i period , . . Piir».liast.d diiriiij,' ^var I'akl k-r saws •■ fitlintf al mill " " sliinffk' hands and binder " Contrai'tor tor 2i),(Xx),oo(i. at j^t. per M " Kcpairs lo mill and machinery , . Rfi.-«.-i\fd from sales, i :;.<.)Oo,cxx) ;;,;■ Allowed |no. Smith 5.(kx> at %i per M lor slu'rtaj^'c in quant ily Paid lake frei^fhl on ^■a^^'o to Buffalo, ^oii thousand al JO its, per M 1, Received from James Jones for 5tx).o(j«t sold him f,o,h. Buffalo Ihe pays duty, seller pays freifjht as above) 1,1 (.'ontraelor refunded owiti^' to error K-^i 75 M, in eouiit Shinges on hand, 4,430,o«k) pioees at average of S2 per M . ; Aeeount to show avera^je eost of shinjjles per M. pieees. AeLOunt to show averajfe sale price of shin^'les per M. pieces. The aeeoimi to be eharj^ed with timber at 40 cents each piece. .IKXt pK CCS .(KHI • * -w CK> 5CX) 00 '5" 00 15.000 00 Hoo (X> BOOKKEEPING TOR JOINT STOCK COMPANIES. Ill IJl isiioN 15. Sli,»v f.Miii, ,,l Sl.vk l,.-d^.^.is. pr,.vKlii,,,' f..r (»l I'lillv paid suvk. (hi Stock pnviihk' in fiills ,it j^ p^T ^fiit. culi. yiKsrii.N 11.. - Kurniih a skcleloii example ..f a Manula>luriii(; aicoiiiit, Trailiiii,' aivoiint. Profil anil l.u«" acioiiiil and Halancc Shccl for a cunihinyd inaniifacturinj; and trading; ci>iKvrn, in stjcli fi»riii an iii sIk'u the inclluKl of balancing fnim one to the other. IJi |.:i.rto\ i;. The Williams Co., limited. Iinorporated under the Ontario I'ompmies Aet. has a (.'apilal of tiixj.ixxi. half preference slock and half ordinarv stock. «ith a Reserve set apart for the preference shareholder, of $io,<«)o. The Di.ectors desire to cancel $jj,nix) of the Preference Slock. Ian this he done ;- If so. how. and how will it eHect the Reserve of Jjo.tKM).' ^iKsriON i«.— The Jones Companv are indebted to each of live employees for three years- wa(,'es. Have they any recourse against the Directors of the I'ompanv, and under what circumstances .- IJiKsriov ii(, -fonipany .\ buvs the business oi foinpanv H. both heini- Joint Slock Companies. Company H calls a meetiin; of its share- holders, who acree to sell all their shares to Company A or their trustees for $j<>.i»ioi C.>mpany B's shareholders to keep all hook debls; l-ompanv A to pay all liabilities, which are to be deducted from said $20,000. l-ollowiiit; is the slatement of H Compain , after lakiiij; oul book debts : Liabilities. \„^.,^, Hook debts $.vi«.. .Mdse jilK.ixx) Hills payable j.,«„ .Machinery, pl.uit. etc , . ij.cxM I'he busines.^ of Company H is continued, and new books opened in -eceives from t'ompany ,\ |i^,. Its own name, as folKiws : $lo,otio to nd Ma > to be used 1 to the old shareholders of Company l< in full paiii.nl for shares, and $j.i«k. to pay book debts, and Compain .\ further instructs Company H 10 pay Bills Payable, $.s.. ;is ihc\ mature, char^'ini; them therewith, t ompaiiy H also -ell. ^■oods to lompanv .\, aM10UUlin(r to $1,51x1. Show transactions as recorded in Company .\s books, and state how a settlement should be arriied at between Company .\ and Company II. M ^ I (-' SELECTED EXAMINATION QUESTIONS. Ill nmrdin^' traii-s.iitions iis-iiimi- Ihnl llu- Hills piiyabk-, $5.(«o have miitiirt'd. Oi KsiiiVN JO.— IIk> luidiior lor thi- Joiu-. Mi'n. I i>. informs llu- hookkfcper thai Ik- lni>» oinitti-il ccrlaiii (.'iitrics trotn rhe HalaiKv Shioi. and advisi-s makinjf an aitowanvc for Jeprccifition. Wni arc inslrmlfd lo amend till- HiilaiKc Stu't't \\liiiJi is j^iviii hclnw . and allow tiir llii.- foltowinjf iU'iiis ; UnCitrned inHuraiK-c, $,),i. 15. (I per cciil. dcprvirialion iin nuuhiiKT^ . plant, l-Ii". WriU' ;5 P'T ^t'lll. oti pattnt. I'rovidv 5 per »t,'nt on Anoiinis Kivtivabk' lor bad and doubtful dchls. Waj^L's aivriu'd due. JlJ;!.. The follow iiif; invoit-e has hven overlooked : Jits. Johnson, >pi.'LiaI machine, $350. This is included in Machinery in\eiitorv, but Ja>. Johnson is not shown as a crtditor. .Isst/x. Merchandise as per Inventory $ I2,5(K) Machinerx , Plant Tools, etc 7t5oo Patent 6,^50 Real Kstate 5.^50 Office Kurniture, etc '.250 Cash in Hank io,acxi Accounts Receivable ...... 7.250 S j0.fXX> tAubilHies. Trade Creditors $ ^,000 ■■^'ock 46,000 $ 50,000 Make out amended Balance Sheet. BOOKKEEPING FOR JOINT STOCK COMPANIES. 1 4;t ^^iKsriON it. :\ nuiiuilu^turvr lias Kfi. in Ilic hahil lC valuiiij; thr output from hiH liulory al ciiliiU.KUc sclliiii; pri^vs, k-s^ ;., percent, Hi»i iiixmii tH iirv forrectl) kept ii-« nxjirds tlu- l';ii-ton , .inJ to!lo« in^ iiri- copies of his MamifacluriiiK and Trading atvounts. Raw tti il^-rial i^ valued at cost, nut niiuiufactured tiOiHis on liand Irive K-t'ii valued in tlu same way as his output. \h- desires to arrive at the eost value of hin tnanufacturv! j^nods On hand, as near!) as possible. Wliat is the \aluv, ami explain uiethod of; rivinfi at result :- M-iini/tHtiitim- . iamiiif. March (I , iK«(i. To purchases to dale..$jH,4(>H y V\ a^'es '0.44.1 M-' " Kxpense J.*m8 ii on Plant 7H H.' " Transferred to I'rofil and l-ossALLMiiiit l,J5y 5«> $4J.8«« 90 Marili \i, iS«,i. '*> Output *.15.'»«7 4.1 ■* Rau Material on hand {>.t».ii 47 $4J,888 90 To Output as above " tiross Profit Tr.itiiiig AnoiiHt. ^^r S"'*--^ • $35.47' 02 " Mfd. lioodson hand 10,411 49 $45,882 51 $-15.y«7 5.1 . . 9,Ht)5 08 845,882 51 /'/A/ "'"/ /^sx .Irroun/. To Distributinf,"- Hxpen- ses, Salaries, Ae. $U,2inj 98 " Net Profit 4,884 (ih $11,154 f>4 By Manufacturinf; Profit 41,251* 56 " Trading Account 9.895 08 $11,154 64 t^LESTioN 22. Take the former question and re-write the Manufac- turinjj, Trading; and Profit and Loss accoants, and show jfross and net profits with manufactured stock ind output correctly v:ilued. SELECTED EXAMINATION QUESTIONS. ■M- Irial Il.il.i \pr,l „. lliitiiiiir\ Shares , , , . Ilihcnliirc > LanUs tiiul lluilJill^'^ I'liinl arul M;it,-|iirK>r\ Store". IO,I.HKI IO,(XHI .'Is. anuniiit vxpciidcU j.^im >,tHK> 7 *.<■'» 5,..1'»5 Cash IJ5 I'lirihasi' I.eJK^''' ■ (ietieral Kxpeiisys Cost Fiiiishcil (.'out rat- Is . Fiiiishfil Conlrat'tJt receipt Jiiiv Smith ContruLt \ivt Jiio, WiHiimis " " Sundry t'rvJilors Kctit, Katos, Taxes <,cn> l'en> Cash lo Deposit Hank. Special .\cit jo.oik) Discinmt joo i.',ish in i!;ink .t,"")0 .• Invfiilorivs are supposed lo ev^ual iniouiil charged lo Stores, l*hiiit and Machinery. 'I'he accoiuit of Jno. Smith and Jno. Wtllianis are progress payment* received on account of their contracts whicli are inchidcd in the item I'ntinished Contracts. Krom tile above mal*e »Mit Trading,' Account, IVolit ami Loss Account and Balance Shee.. (JcKsriON -'4. .\ new company is hetrifj formed. The promoters invite'substriptions for $ioo,ock> worth of preference stock, shares bein^; $K)ct each. .Applications arc received for the followinff amounts : A $i5,oo«.> llu I . om > 4.000 44.000 54,i>oo l.ooo I, con BOOKKEBPING FOR JOINT STOCK COMHANIES. it. Vhv IWrvi.Uiri.dvviilc t.' ..Ilol f75.(»«»prn r-ira Ms ikmiU .1^ |>..^„hU i -imoiiK iipplkiinlH for amoiT'* cxlccdill^' i.4.(»«., .nu) ilu' tiiii.iiiuUt .•! \\w i^sm- pro ral.i (.is lUM ^-^ibK-) unnmti ,ill rlu- .ipplii,,iirs, (n. yi'Hsunx J.s.— All iincstor ;isks x,„i ;,> il ^.,,.,1 \.^ „u,,|,,,,| ,,, H'wv him ropori of whm tlu- sto.k is »onli in ,. l-irv Ihmh.uui- (. omp.nn. All \\w informutioii lu> lhi fii nish son is i1k> kilKM\in^. : li\ \M I \i. Si \ihMh\ I. A'liii/'/s. IVcmiunis r*.,\i\i'il f'Mjr cij I.oss LiiKilhitions iiiid ri.-1uriis 'f',\t*\ 5.' i.i-ss ri'iiisiiriuuc j^.S i,^ ItilircM iii..nmt 7H0 H; Expi mature. I'"irc losses piiiil | -,y, ,,, Ajfonts i-ommissious iuid chur^fcs i.2mi i)j VV'orkinjr t-xpcusL-s, books, stationery, af^'onls" supplies and sundries 4,i(>o SH J*'''-'- ^^^54 tt.,.^tj.i (.5 Assrts. Deposit with Pro\iin.ial (uniTiinuiii . . . fjj.cnm 00 Accrued interest on above (j.j ^i» Cash on hand and on I'eposit 1,718 (14 Pronu>tion and organization expenses to ■J-'t^" .v54.^ '5 Goads' plans and office furniture 441 :;:; Af^ents' balances in course of iroUcction . 721 1 \ $.1.-t,4H6 97 SELECTED EXAMINATION QUESTIONS. i'apitiil Stivk piiitJ u|^ SunJr\ ;u\'oiints p;i;t;iN\- . . . S,i>ir,/v f f'oluv H<'Uhrs. SiihscrihvJ i.ipit.J -U'lk iiol ^allvil .. ,f,V".-'4- 5" IViiJ lip iMpii.il ... ;j.7_;7 50 M.tI.IIK\- If"!'!!! ' .■\ I'lIlK' .li\'ti|lttl . Hi y\ I. rilui/v IIk- st.itvuu-iir .tiiJ iii.tkf .Mil hrifl npurt. ^i i--sn>>\ jt>. I lu- hv-l.tw. (i| .1 M.iiMir.uluriii^ 1 •^nip.iii^ pnuiilc h.it tlu- •.iiin ol f 10. th«> chilli K- Iniiisli-ru-J lt> K<.-M'r\(- l-uiul :uiiui;itl> i>u1 ill prolM-- .itlv't (111' p;i\(iH-nl »'t ii 7' di*iJvtul upon I'ri-Ur.-iu i- Slii.k. riu- llnaiKi.il w-:ir vMKK'il ,41-t I V. lidKt. khm.. I lu mill .. luw .'iit- st.irif J up on I si |iii\ , ii^Ni ; till' pTiitils si III i' iMriivU l.ilU r p.ii iiu 11 1 ol Pn-trrrvil l>i\ lili-iuli ucrt- $ii..HM.. VVh.il .tni.Miiil ^l>o>iM K ir.msKi utl 10 Kc^orvc. iUiJ vUm ,' (Ji f^iiov .'7 I \p!.iHi till- ilitl. iMN.-, uluUr ihv l>iil.iii.. I onip.it.ii.- \»i. luMvw.i. i./l llrjin.in NUvk. \h\ I'liiiiuLiliii- prtltTciK I' Slovk- \> 1 IVctvrciur Sloik, I,/ rvt'fMiiius I. I IVi-r»rriJ St.', k nJnin.ihk- In .omp.HU, (Jll-siios jM. M.,k*- .Mil Ir.ulin^' A. ..Mint .itui l'u»til .uul I..". W.'OiiMl or Mr MtouM. M.'i.h.tni, tt.Miilh.- t..|l.mii)u I ri.il H.il.in..- i.tk. BOOKKEEPINC; FOR lOINT STOCK COMPANIES. lit I r M.iJuiKli.. .'II h.iiid M.it 1 IS.,, .... f^..,. riir.l.;i.i . J4..U'i S;il:irk-H ;iik1 W .ii;^-.. 5.'«<. (VciKlu 11"! ■ ■ .Hill Krciylit (.>uti 5'M Kciil and Titxi'^ . J..V"' (ii-iieral Kxp^'ii*!'-. l..'0«> Ro.arv.- I,.r lliiU IKhl. . f 4'" IrnUo C'l'.-Jil.T'. .V- KilU l\i>.il I'l.iiil, lixliir.-^. s'li .;.'■■' I .i.h on haii.l . , - ;; See tliiil i, \- ^c) .oiiU- U> pri>\tik ti>r h^ul :iiul iloiihUiil tUhlo. hand i> $.),(iiH>. Pl.iMl, li\tuu->, t-I. , .itv v.ihicil .it K'..V<<> iJlK*ru>\ .'.). \ l"Mlt SU'ik t\iiiip.iin I. t.-riiK-d wilii 14p1t.1l i>f $H»I..WH>. It is dv'tiJi-J ti' .l,\l-pl V- Ollvl .'I til-. hu-IIR-Ss t.T f^.i.iBH.. hitlf p.iyiihl<.- in shaus. f i..,.»n. m i.tsli. 1 it[ the b.iKiiur by n.'li- ;it tix iniMil1ir f*i,<»«> worth I'l' sliiirvo, pii\ iii^ trt-ili I.T siiiiii' KtrciTil ihe^*' iMiitu-- m i inir tKH»ks .tjul sh.'W U-J),'vT iu, .'uniN SIumv .iNv' >.t»Kk ^.r -.Ii.im- ^'lt^;cl MiiOUnU I'htf ilcni, :fy>.«>"i> ''"f A- hu-inci^. i items, wfu'ii i'liU'riit); in K'.'li- uKliviiK'il ii>t.< (^Hl-ii..\ ;.. Wti.it Ii.it.mH di%Ii>i('in-l> III. K-.-k-kivpint; i>i'.< siiry fur .4 piirtiur-hip trciK liirtt iu-.i.*s>«n (\H a jvnit ilt'vik I >>i|>( Ks>kH nnmri'd ifii \% li> Hh-thit-l iini-,lll\, Ull.' sIllMllil ..pp.Miit .iiij p.n him - tjM-ih'N ;.'. {./J W li.it iiiliMin.iIi.Mi J.v^ il>i- 0-ii..ru- (. .'inpuni.-. \it Ti'L|iMii' i.> Iv hiiiitslu-J l>< .III .tiitliti« >'t .• .oinp.iiix ' (A l-iinii-h .1 ilrull . tilili. .tie in ,.i . t'r,l:tiu i' «itii lIu- ii-v|uirciii.ril- ..( llu -..MU \.l. ^Jii-iiii\ ;i. Ill Tilt- .iiulil ,'1 .1 loiiip.iin .>! l\>ip.'i.iln>ti. .IV il^. 1 111^ III -.III J lit>i)i .1 p.tiliit'i '.liip, vs )i.it ->i»i I i.il ni.iTi. I '• u-i|iiiit- .itlfitliiMi ' Vji f-iii.s ^. \n ..in.ily.iiinli.'n .'» ilitu ..Miip i ■> l^ ptopi's»-J ^Mili .1 v.ipii.J .It 9i.i.>-->.<->> .111.1 :i u-.M. .. <<•■>. Du- .>■ i|,'initl I. (pit. J ,'l ilu' lliin- .iiiiip.iiiii- .Mill thiii ii'»pv.ii'.. .i-svi-- I* .f l.ill.'wi ~ \ i. .tptl.ll $i..«»t.iB-i. \•.'.l■l^ ^.lliuil ..1 fl, ->■'.<■■ H, . i...»»..M«t. 7V'-'"' i. . ■■ i,js.>..«»>. ■' ■■ I ',"."' Il IS p...p,.v,,( U> I.-MII flu- HHCiVi' l\^ Mkliiy -•.■ .'I III.- tiJtI.J .iipii.il ..I lilt ih'i. ...iMp.itiKs. Uh.ii «.MiUI .. -liiirvh.'UK' )i..mii^- liii.t-oi w.irtli .(p..i.il. J tin.Ki lh.- l>tit.iiii) i'.'nipiuiii's \t t .Kt- ilL-oirmi^ t tu- I.ik,-ii l*t .iirn .ml llu- .if i .iii»;inu HI - tji (■.ii..\ (I. Wiun .mil li'tw oi.iN .» 4 .>n p.ti n. in. .n i>.'i.ti*-il urul.i till' l>ii(,iM.> I .tmp.iiiKN \il. itii icJis,- lis t .ipil.il M.H k .' (Ji is||.'\ t;, Whm .ir*- llu- .(MtJiluois .is (.< siihsi uptii'n .titd pin ■ III. Ill .>! k III .>hl.tMiiiit; tcllCTs p,iU-M) iMiiki : 1^1 Ml. l>iii.tri.' I ."nip.ink-s \. t (A) II).' l>.>ltUllii..tjf .l.bls. BOOKKEKPINli KOK ICXNT STOCK COMHANIHS. ' i' Ijll.ll,.. ,,. |l.-.t"l.". I-.,.1m,i; ,,,.,1 ru.l.I M.,M ,.l , Ir.i.lln., liM.. -Mill -.1' I--" l-i.ui.li.',. llii- ,.in K i:i\," .'" .'".■ .li,',l .■. .>illi -,l.,,lul,-. ,,. .....< h. ,l„.-,!,. hul tl.,' ..-uil i.HiM Iv ,l,..iU ^h.nm- lluiul pt.'lit n I .-.u li hr.tiiJ. I' i.viinr. J 1.' l'.^l>.-"n IJ, ,s ,.. III. sin.i„.,.i/.J 1m.. I 11,1,1.,. I ,,„ij>.,i,, ,1 111. . I,,... .■[ ., 1,1,,,,,. ,..l I',- I ,> .,' l.'ll. „ s \,,i-. K,.>-,> ,l,l.- IlilU K..,-,>..bl.- . I...,..'li..|.l ... tnip,.'^. ,»,i',l^ I.' I .■.,..I..,UI 1 i\t,i,... S.,l,. .1. S:il.iiio< l'ii|H-i .itiit Ink ImhI .,.u1 I ,«l,l U*Mu-,.tl !■ xpi-,1^. IW...- M.,l„.„,,. XJvt'rliMiiih' \',mu<~K >•'■'•" K. ,1 I- >!..■. I'.tnimi-*,,',,^ i„>,hI»,II. l„l».,ul,i. ( .-.s ;.. K.,.T.,K ■|..-K; _■., \, I'.>.,hl, ,,.|ij ... Hill. |l,....i„,i.,l ,,_...,,.. \l,.,ii:.u.- ^,,,v, .., I',. .1,1 I .'.- ,..-,, ;.. l.i|,|l..l .V,,. r.ii ■ ,.i i; ,,.•. V.U.,I,M,,|,, ,,,,», ;, ll.„,l. ..I M..,„|.'.,1 ....-■;( '-■ r,,|.i,.l„ ^l^t.-i^ 4J ».l.i4-.i; H \.„i.li.,. t .,l,> .,„,.., I...... t.,...li..„,i; 111.- l,.roB,.H,t lodk-or ll.tw l>t't-ii fX.tltHit.il I,..,,' 11, 1.' int,ntl>. .>,itl III.- Ir,.,l M.iliiii. t' .,* Ii, *itiliniiit,/.-tl null. .11. s ,,,.,ili, ,11.11,. .il .i..,ii.i.\ rii--.,-,*! \..,,i I |» II .. .1 llu- -tiulitm ,•( liii- t .'itir 1111. ,, 1-111, i--t. I, ilvin ,„ tl,.- li.ii-j;..|iiK' mnv init). .iliiii; '111- r'"'.<*"l"" . ■■! .-'ii'i. .mil till pi.-.-ii I. -nil l-il. I,. ...Mil.. I. .111*1-11 Ill.l1 111. ll.il Mi.-.l 1., Wlll.tl I. ,11 (ii..pi,.. 1, .»ll.i.lt I. nil . ,-tIitt. .11.- .1. 'UK .lull Hill l.iti 'I ,1.111. -HI .'I 111.- I --nip |Hi«niiii, 1^* SELECTED EXAMINATION QUESl IONS. V '■•iiON .41. I'lidtT Mhiil ciftiiinHtitM*tfs mi^ihl (uHKlwill luvoiinl K- pr.ipcrl* irc.iU-d or iiuroiiseJ in ih^- ,ii.<.AtiMi|s .«( .1 jfoiiij; lonvi-rn ■• tiiv. thrci- i..si.HK.. 01 v.,lu.,t. .1 (MH.jHill. .k.n.-,uli,.« upon Jissimih.r ii'ii^ijflralioiis. ljl>~n,iv ,.■ \ lonipam iiuorpor.,!.-,! unjir Iho Onl.,ii,. I om- |'.lllu•^ Vil ,n.i,l. .r Hy-I.i>> ir.Mlinj; rnKi,,,. , Sl,.,k. 1.1) VMlin il.Ks Miih ., Il>.|,i« h.i,.iiU' ..p,i;iii>, ■ :'•: «l..,r p,vl.„n..- , k ti>>-" - 1.1 I'.iU.i »h.,l .,„il„.rin m..> p,,f,,,,J ,i...li d.T. >,.!,■ lor or .l.u Jir.-.lor^.- INDEX. V.K,.iil..h'-. -I'l St..k< )>. \m.Uxt v.rilMi,^ |-.I>t)..i, ■ -^I.-k l-.k Vni4tlt{>tii>i«ii f ■ -•iii|wi>i<» \iH>.t AII.IK- V|>|>li-. t. ri(..l AllMfh..'ut Ib-.L I.H M : \'..|>tlllUl ■.l..|M.,t tt.M.k. Ih.k-H.- .\>«lii>>r> »ihI till II MiiiK • '•rtih. all \.itli..ii/.-l I .i|iii,.l -^I'-k hi (I r-' i:t lUUiii. •>)..'. t- III ^■...i.il « ..liiimMi Ki.uli-1. 1 1. .11..^. lt...kki<|ll'''-k • '■••l|« tl...k- ..I \.....Ti.l <.-,ii..-.| ^.^ >t.tiit t!......| Kitfl.t iM Kiimini IU-.k A|i|"- '->- li..<.„.!, 1 'I'ii'l ^''-k 1 , v., I i,.,l !•■ >iil.-iil»-.i 11. m.ik Viil >..! I' 1' Sill I |l,'.i.':,. Ml I iVil.li.,,1,. v.i.lii... . 1 '"'" 1 A. ...111. I I,..iiti,t 1 •■ Ifcliii.-.l Ik..,,,,,,..,,, ||..» s,^,„,| K,,.. i.„ ilni F..-i.„ r • '-txii ILil.. N|,. .1 ' ("III. -A. I, n,. >., u ( „„,, , Yi. !■ a-l.l I.I..1.. -•'■' - "1 f.trl.,..-l,i,H I.. 1.111, if ,M„i... ' >..I.I,.IH. |-,,.|..,..„.. v,„|. :lo. :iii. at . im. 11.-1 III tu. la I'"' t"!-.' lii;i Ik-l.i.Mtn . I"" 1 1 1 |....l„,i ivi •M ..|.,l.,| SI,. I, 'i"!"'! iiini Ti...hnt! .,i,.l ('...ij | |.., Ii.-).»il |t.,...|rt «,, (w,,,,,,,; r «lll, K«',<'l,,, I.,„.,4| "•"■I" ,M"i-'l III. k«... . -' Aii.liiKiu I K1„|,.», ,.| l'„»i.r- ,1 l.inl.ililt |,„ \\\x^,. !>,- s|„,,.. Ih,,.|,i«l 1I...I, till, I IT, IIS. nil IJ, INDHX. I I I >!,..' r>isj.i.i."'.'l|! l.„Li..., ,.- It„lli.l.i- ■ 1 ...I li,>,.l,.„.l ' i,.i„,, I It -> I.. I.,i„„,.|i ,^,„^ ■■ ll,-.,,„«„M-.,|.,i,,l.s,..k , ' lii~ I ..„ M,.„,. Ki,ll,>!„,, ..I Ml,,,.-. ""■I ' ' ..I ■ ■ »-■■"■ ■' " '>rKrtiii/4i|i.ii MiH k ■ Ti.tn-hniin- .••Ui.- IV-...UH >r.i. k ■ ri.-Mi-i.i-..i ^..-k ■ ■ W..rkn.« l.,|.,t:ll K«.T..— ..„ Am..l««iiN,.u.>; (..m|..h... \t>|.ll.Ml|.ill l>l.l AllilMlli Ml IU..k ' liimoliitiN. I>r-r-i.'i,.,- M.,L >U. Ik'i. tifi ft! !»■_', IW ;:i »•.', (3 INDEX. 11 r.mv.-r-i.Mi t.. r.iiiiii<-IW.I.'l,.| II.N.k I'mmU'IhI... IkHinH-.. h. . K..ifr,l.-t Shan-- . ., lrii|Miiniit>iit iif rd|>i|jil . . liixiMlmt-iii LiiiH ltl'<.ci|>lH ^'"' rHt.iliim <>( Agrniiiciii iiml Mljck lliNtk Milling SriN-k .MllllllCM "rKHiit/mi'm Aii'iMiiit l'n-f.Tn-1 Sl.k k , K.-«i-i.-i of liir,vio.>. Shsm l^-)l){fi' M."k (VriJti..ti..« Siilw, n[ili..h HI..I I'ayn t ..f Hhnn-* ... Tr«.li.t« .III.] 1'ri.tli I f^-.« A,-.-..iint- TriKiMffrriiiti SImiiit IVBicf.-i Hi-tiiHUr , , Trfimiirv Si.Nk R , Oiitariii All Ihiniiiiiuii All Kiimiii-wl Suit' KurfHtuiT..* SI, Ik. mi moil All .. Ont*riii A.t Vtlnl.nii, t.Tifyiiiy SiKiiitiiiii'. I.I Si.»k HtMik I'vtitiiiri i.t l>.>iii ,.| \ll"iiii.ni N..U.-.. A|>|>li>'t( I All..i)i> > ok toi Shai.- rliiirlri IVi-bmliiui \,y IViili.iwr l>i*|Mnil K<'ii-i|il >h-.'<.ni|Hiii\iu||[ IVtJiiim hr.ifl j....,i,pHtnir.v IVtttl..;. Ih»i.i.iht |t.-.k Iii-fnliii.'iit U-l. K.'..i|.l l-ll.i-..f K*-j(n-i. ... ■ . tint l» \-£t 47, tM. a'l, titl INDEX. l-'..tilM>l U-rirro l-Mlrlll Mi'iiioiMitiliiiii i-f Atfnf'MX'iK mill >'--k " H.iii...n f,.i h....,,K..Ht II.., „.„ Ml <>iit.m.. All l*r.M|MH'iii>i .... KctfiNtiT III iMrcit.'i- riHii-f^r- Slmti' l^flMcr '• St.-k ll...k - U.\n,r G. '--Imll A.. t ■ .— rn.tii liiijHiiniM-iK .<( I'4|iimI I 'i.r 411.1 Kxi^iKiil Si.,i,.|...t.r r,..N.hu,..f r..,„|.,.,.,... IfctMLm...., A.I ■ ii.. Alt Ifi.mm,.-..! (■..[.it.tl SI. Nil [■■■i..li...i.i Li.t ..I IbK.k K\.-i.i».-....i K.-..')!.! I{.>..k Ii.-lititt.' ..( fliart.M.I A....iihluiil-..t niiiiiri t" H SI,.M.-.|| ,1 III.... I ■ \\v, „. •' I -^r-nk l'.,m|MMi.>.. ,\.l\.iiiiiii:. ...t l^.^k lii...r|M„,.t..l Ih.mi, A.I Oiit.inx A.I i'.>iii|Mii\ lt.Hikk(i-|>iiiif I,<>iifi-. I>.ih'i>i, Ih'iiiH-.! K.-.-.(..i. Ih.n.ii>i..i. A.I • hitmj.. A.I I "1. I I >..Jm|Hi Mnii Ir ll...k M. ;. :«, ,-tip. 111 '>f All.iitiix.r r>( : N. O. Alli.Lv .-.., .>llimil\|I.H ['.■IlllMll XII' >nt. Ill •> .^hnr,.. Aiimlgi IllUli •'"H: ,«.»... Aiiiiiiul Nut riH-ht . Sum iiui V i>i Attxii. . Aij.liti, >. -m tlH'ii hiiti.'H lt.N.k-.. f \.i .<.l ('iimtII ii.», * ('rffii.ti. .. St.Hk i'ontmi^t^. u M't. t.ili'llnu lh-.ii.UN *■ nt < .i|>ltul St.-k ll)r.-.to ^ Uf.. rt.iir ('..Hi-r- . ... . Fr. K.ilf.-iliiTr m| S|,«,r« V'>n,i ..I ni.irl.-t In<-.i|t..r«li.m iiixli'i . . lii.i..««M.fru,,ir.tlSt.«k I.mtiili(ir>t iif |>n<'< liiif l.iHt)Jliii,-H..f Slmn-hol.l.r- I^MiiH til Nliiir<-lii>t.i<'r- Mwn.iuf Atfr.-.-m.Tit .mil St.-k Cm-.U. '■-t.....nf..rli,..,.,, I'n-fcrfricf Sti.k I'tinhuMlnK StiN'k ill «tliiM Right ii. Kxamiiii' lt.-.k~ TmiiflfiT i»f Shim-H . I'm- iif woni '• T.iniit<^l ' -miw INDEX. I.*: 2 II I'lii'l «|>< |„I. M ,mm It „r.,l rarltxr-liii'. |Hit>-li„rr. IVIII I.., |,n.|- l'.lf,rl.ll„l, \.. H.m.N.„ii.l.( I'l J hii.. ri ■.sick "J ►:.,. A. Ihlii. I'M'lKI l-ioht AIkI Ijm-i .\< . Olllll IV...f lln|i ,\\n U.Miin .\,i . l'"-l-l"" I'll>>lli' Notix' M-.i>lll1.l Ii.ll I'lii.'li.iitiiitt SI.N-k it. ..I lit.) I'>.iii|itiii>- MHl. 11)7. 114. II.'.. Mil, 117 111. nil II II. I.-. I»l Tni. I.I.I- Il.« I .. . H.-.ri.. I.. I lU.l II..I.I. Hijilit I.. Kxuiiiiii.' ri.iiiiNiii\ II.H.k. .VI. M S.aHV..f W I» S,.llin« Slwi. t lit il )Kifir..-.| IN Arrr,ir~ 1 IS.- it Ici.. iltiiii Hvi' i.r LmliiHty .if :i. iw V.,t ( i:Vi Shiiri' I^tlffii -tn. .•pit. :>-j.Xi, .-A .Slmn-«. Aiipl uti..iif.., IN Alloii ■ ('»IU 139 I.VI V III IMhikimI nil Kurlfiliin lit I'rnrniiini mi ill o(hrr ('iiiii|Mi)iii4 *' >4|ll.,.MllltlU f"i '■ Tittn.f.r ..f Nuidrthin-B l.y AliKiiHM Nt.-ll HlHik ■' LVrtiri'Ht*-- liiviilftid tAttitrt |-'iirni» , Hii)w.rit«l (;«|>i(Hl Si.K k. Miiiiiiuii.i iw|iii,-e,| ftiiil I'liicI up rii|ii(Hl. Kiilrii^ fi.f f^l|l'-tl|Hi„„ B-K,k. I'w ..f ..f . KmTii Siii|>lii'. SviiillnU..., K\ . i It m. ■i ■a ■M <•■ m 411 m «7 ..w .VI. .V.' Mil. .•a t» 'J a :«» Mt TNtlllll^ Ar,..,,,,!. Itmi-ftT ll....k [rHii-f.-i of Sh«if« Kiitrio fur Kxcn-im« on Kiirm of Kft(iNti-i' ■rr.M-iiiy Si.N'k . . 'f'lia) KkltiiiiH-H , . . T. .IIM. IIW, m, ll.l. IIH. 117. Il>. lit) 1.11 . .fH. fk'i. HH m,)f» .lol. Mil. III. ii:) ri»iiilM('nt'*<