IMAGE EVALUATION TEST TARGET (MT-S) 1.0 I.I Uit2A |2.5 ^ ^ 12.2 2.0 us US IM I IL25 i 1.4 1.6 Photographic Sdences Corporation 23 WBT MAIN STRUT WIISTIR.N.Y. I45S0 (716) t7a-4S03 fr^ ^^f/^ ^^^' ^ CIHM/ICMH Microfiche Series. CIHJVI/ICIN/IH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian da microraproductions historiquas Taehnieal and Bibliographic Notaa/Notaa toehr Jquaa at bibliographiquaa Tha I toth Tha Inatltuta hat attamptad to obtain tha boat originai copy avaiiabia for filming. Faaturaa of thia copy whieh may ba bibiiographlcally uniqua, which may altar any of tha imagaa in tha raproduction, or which may aignificantly changa tha uauai mathod of filming, ara chackad balow. Coiourad covara/ Couvartura da coulaur r~y^ Covara damagad/ D n D Couvartura andommagia Covara rattorad and/or lamiiiatad/ Couvartura raataurAa at/ou paliicuiAa I — I Covar titia miaaing/ La titra da couvartura manqua Coiourad mapa/ Cartaa giographiquaa an coulaur Coiourad ink (i.a. othar than biua or black)/ Encra da coulaur (i.a. autra qua blaua ou noira) Coiourad piataa and/or iiluatrationt/ Planchaa ot/ou iiluatrationt an coulaur D Bound with othar matarial/ RaliA avac d'autrat documantt Tight binding may cauta thadowt or dittortion along intarior margin/ La r9 iiura tarrta paut cautar da I'ombrc ou da la diatortion la long da la marga intiriaura Blank laavat addad during rattoratlon may apparii' within tha taxt. Whanavar pottibia, thata hava baan omittad from filming/ II aa paut qua cartainat pagat bianchat ajoutiat lort d'una rattauration apparaittant dant la taxta, mala, lortqua cala Atait pottibia, cat pagat n'ont paa «t4 fiim«at. Additional commantt:/ Commantairat tuppMmantairat: L'Inttitut a microfilm* la maillaur axamplaira qu'il lui a At4 poatibia da ta procurer. Lat ditaila da cat axamplaira qui tont paut-Atra uniquat du point da vua bibliographiqua, qui pauvant modif iar una imaga raproduita, ou qui pauvant axigar una modification dant la m^thoda normala da fiimaga tont indiquit ci-dattout. □ Coiourad pagat/ Pagat da coulaur □ Pagat damagad/ Pagat andommagtet I — I Pagat rattorad and/or laminatad/ D Pagat rattauriet et/ou palliculAat Pagat ditcolourad, ttainad or foxa< Pagat dteolortet, tachatAat ou piquAat Pagat detached/ Pagat dAtachtes Showthroughy Trantparence Quality of prir Quaiit^ inAgale de I'imprettion Includet tupplementary materit Comprend du material tupplAmantaire Only edition available/ Seuie Mition ditponible The pott ofti: filmi Orig begi the I tion, othe firtt tion, or ill I — I Paget ditcoloured, ttainad or foxed/ I I Paget detached/ rri Showthrough/ I I Quality of print variat/ I I Includet tupplementary material/ r~1 Only edition available/ The thall TINI whic iVIap difffl antii begi righi requ met Paget wholly or partially obtcured by errata tlipt, tittuet, etc., have been refilmed to enture the beat pottible image/ Lea pagat totalement ou partiellement obtcurciet par un feuillet d'errata, una pelure. etc.. ont M filmAet A nouveau de fapon d obtenir la meilleure imege pottible. Thit item it filmed at tha reduction ratio checked below/ Ca document eat filmA au taux da rMuction indiquA ci-deatout. 10X MX 18X 22X / 2»X 30X 12X lex 29X 2«X 28X 32X Tlw copy film«d h«r« has iNMn r«producMl thanks to tho gonorosity of: Mitropolitan Toronto Library BusJiMm DtpartiKMit L'wfomptairo film4 f ut roproduit grico A la g«n«ro*it* da: Mttropolitan Toronto Librwy DuiinMi DspsrtnMnt Tha imagas appaaring hara ara tha baat quality posaibia conaidaring ttia condition and iagibiiity of tha original copy and in kaaping with tha filming contract apacificatlons. Laa imagas auh^antaa ont 4t4 raproduitas svac la plua grand aoin. compta tanu da la condition at da la nattatA da I'axamplaira film*, at an conformM avac las conditions du contrat da fllmaga. Original copias in printad papar covers ara fiimad beginning with tha front covar and anding on tha last paga with a printad or illuatratad impraa- sion, or ths back covar whan appropriata. All othar original copias ara fiimad beginning on tha first paga with a printad or illuatratad Impras- sion, and anding on tha laat paga with a printad or illuatratad impression. Laa axemplairas originaux dont la couverture en papier est imprimte sont filmte en commenpant par la premier plat at an terminant soit par la darnlAre paga qui comporta una empreinte d'impression ou d'illustration, soit par la second plat, salon le cas. Tous las autres axemplairas originaux sont filmAs en commenpant par la pramiAre paga qui comporte une empreinte d'impression ou d'illustration at en terminant par la darnlAre pege qui comporte une telle empreinte. The last recorded frame on each microfiche shall contain the symbol ^»> (meaning "CON* TINUED"), or tha symbol Y (meaning "END"), whichever applies. Un des symboles suhrants apparaftra sur la darnlAre image de cheque microfiche, selon le cas: la symbols — ► signifie "A SUIVRE". le symbols V signifie "FIN". Maps, plates, charts, etc.. may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Lea cartas, planches, tableaux, etc., peuvent Atre filmte A des taux de rAduction diff Arents. Lorsqus le document est trop grand pour Atra reproduit en un seui clichA, il est filmA A partir da I'angle suf>Arieur gauche, de gauche A droite, et de haut en bas, •n prenent le nombre d'imagas nAcesseire. Les diagrammea suf«rants illustrent la mAthode. 1 2 3 3iX 1 Z 3 4 5 6 ^•V % ^^^ -"^ft^ OF Chartered Accountants INCORPORATED BY ONTARIO LRGISLATURE Questions USED AT THE Examination for Certificate and Diploma 1895 ThE WONETAHY TIMES PRINTING CO., LTD., TORONTO, ONT. ^ ''••if v'« \ i '^1 '■^,' ' ^ I>1'^ ,,.:.-'**^'' ;^ .»« TORONTO PUBUC LIBRARIES BEFERENCE UBRARY u G»S-T.I^S^.^. t» /> TORONTO PUBLIC t'DRARSES City Hall library Business OFFICERS OF THE INSTITUTE HBNRY LYE IVesident GEORGE EDWARDS . . . . iBt Vice-Presideiit R. T. coADY ..... 2nd Vice-Prcsiident F. s. SHARPK Secretary-Treasurer JOSEPH E. WALSH. Auditors p. TURNER WILSON, ) m Council HENRY LYE TorontO R. T. COADY . " WM. ANDERSON " GEO. EDWARDS " L. GOLDMAN " O. M. HUDSON . . . .v.; " HENKY BARBER , ^ ...*.. " ALFRED JEPHCOTT •' H. W. EDDIS '• JOHN T. MOORE *' JOHN M. MARTIN " " WM. MCCABE " A. C. NEFF . '■ , ■ " CHARLES E. STONE " F. S. SHARPE H. S. STRANGE " J. w. JOHNSON Belleville J. J. MASON Hamilton H. viGEON Toronto G. F. JEWELL London w E. WATSON Toronto Examination Committee H. W. BDDIS R. T. COADY HENRY LYE WM. McCABE JOHN M. MARTIN 'gEORGE EDWARDS ALFRED JEPHCOTT F. S. SHARPE JOHN T. MOORE W.E.WATSON GEO. F. JEWELL ) When examining vouchers for cash disbursements, what means would you take to prevent their being again presented as vouchers for payment in subsequent audits ? 7. — (a) How should a leasehold property be dealt with in the annual Profit and Loss Account and Balance Sheet of a Company .'* (d) What is a Sinking Fund ? Is it an asset or a liability ? 8. — Under what circumstances would an Auditor appointed by the share- holders of a company be justified in refusing to certify to a company's accounts, and what would be his right course should such a necessity occur ? In the event of such a refusal either to sign the accounts, or to certify that they are inaccurate, being likely to entail disastrous results to a company, what would be the best plan for an auditor to adept under such circumstances ? -j 9. — A Fire Insurance Company is established to insure principally *' Isolated risks," seven-eighths of the policies being three years' risk. Their 6rst year's Revenue Acrount and Balance Sheet are as follows : — RRVKNUE ACCOUNT. Premiums received $60,000 | Expenses, agents' com- mission) inspection ex- penses, etc $2o,6co Losses paid 14.400 Balance, being profit 35tOOO $60,000 $60,000 To capital paid-up, say $20,000 To balance of profit 25,000 $45,000 BALANCE SHEET. By cash Investments, etc. ..$45,000 $45,000 Do you consider this statement correct, and if not, state reasons. ro.— Assuming the following to be the Revenue Account and Balance Sheet of a Loan Company— an intending investor in the Compaity's stock asks your opinion of the Company. State your opinions and reasons therefor. REVENUE ACCOUNT. Interest to deposit- ors $20,301 00 Interest on deben- tures 14,00000 Office expenses, etc. 21,000 00 Balance 36,198 95 - $91,499 95 Interest due andaccrued on mortgages $85,199 95 Rents, etc., on property foreclosed 5«i5o 00 Rentals of Company's premises 1,15000 $9r,499 95 Applied to dividend on $500,000 at 7% $3S'000 00 Carried to Reserve Fund 1,00000 Carried to Contin- gent Fund 19895 $36,198 95 By balance .....$36,198 95 $36,198 ,3 RAI.ANIF SHEK.r. To capital $1,000,000 00 w% To deposits " debentures " dividends unpaid '* debenture interest unpaid •* reserve fund. Added *• contingent account. Added 17,500 00 7,000 00 6,000 00 1,000 00 1,200 00 198 95 $500,000 00 750,600 4$ 350,000 00 24,500 00 7,000 00 '.398 95 S', 633.499 40 By mort(;age loans $1,130,252 47 " " interest overdue and unpaid 1^5,32853 " real estate on foreclosure 285,009 45 " rents on foreclosure due and in arrears 2,520 00 *' " of Company's premises due and unpaid 52500 *' office premises 30,00000 " cash on hand and at bank 19,863 95 $'.633,499 40 Final Examinaiions, May 17TH, i8th and 19TH, 1894. JOINT STOCK COMPANIES. iimb:— 3 HOURS. I. — State briefly wherein the provisions of *' The Companies Act "(Can- ada) and " The Ontario Joint Stock Companies Letters Patent Act " differ in respect of (d) Matters precedent to obtaining incorporation. {b) Matters of procedure in obtaining incorporation. {c) The powers and liability of Directors. 2. — (a) What remedies have shareholders in a company for damages sustained by reason of false statements contained in a prospectus ? {b) What mis-statements will invalidate a subscription for shares ? 3. — What books are required by statute to be kept by a Joint Stock Company ? 4. — {a) What takes place, if the number of shareholders in a Company falls below the number required to secure incorporation ? {b) What takes place if there are not sufficient shareholders in a Com- pany eligible for re-election as Directors ? ...:. ... 8 ■•■■.' .■'■■: . ' .: ■'-■ 5 —(a) What are the voting powers of shareholders holding shares fully paid up and shares not fully paid up respectively ? {i) To what extent may the statutory provisions be varied relative to the holding of meetings of shareholders and meetings of Directors ? • ^ 6.— What is ihe liability of a transferor of shares not fully paid up, subse- quent to the registration of the transfer upon the books of the company ? 7. — In what manner may the Directors of a company deal with shares standing in the name of a person who ia otherwise indebted to the company in order to obtain payment of the debt ? 8 --(«) What is the difference between a " Resolution ".and a " By-law ? " State in general terms the function of each. (fi) What is the significance of a Corporate Seal and when is its use imperative ? 9 — What steps are necessary to render valid i.-d operative a By law to effect (a) A subdivision of shares. {d) A forfeiture of shares. (f ) An issue of bonds. (d) The hypothecation of real estate. (e) An issue of preference shares. 10. —State clearly the rights of creditors of a company, (a) WViAre shares have been issued at a discount. {b) Where the capital stock has been decreased. (f) Where shares have been forfeited. Final Exam[nations, May, 1894. BOOK-KEEPING. TIME- 3 HOURS. I. — At the time of closing a merchant's books his accounts stood as follows : Merchandise on hand, $24,000 ; bills payable, $5,000 ; mortgages pay- able, $2,500 ; interest accrued on the same, $24 ; cash on hand, $500 ; book debts receivable, $15,000 ; book debts payable, $2,500 ; withdrawn on private account, $3,500 ; capital invested, $30,000. (a) What were the net profits of the business ? $ {d) What was the net capital of the merchant at the close of the business? $ 2. — What should be the respective entries of a shipper and of a consignee in the case of an invoice of merchandise of $4,500 to be sold on account and risk of shipper, and which were afterwards sold for $5,985 cash, n o s ie to s : y- vn he ee nt M 9 :■ ^ -' and an account of sales rendered in which were charged $25 for freight, $149.60 for commission and $10 storage, the net proceeds hav- ing been remitted by draft purchased for cash ? 3. — B, of Toronto, purchased sugar for $20,000 cash, to be sold by him on joint account of himself and A, of Montreal, each one-half, forwarding invoice to A, who remitted bank draft for his share. He afterwards sold same for $22,200 cash, charging commission on sales, $555 ; storage, $40 ; insurance, $20, and remitted his share net proceeds to A by bank draft purchased for cash. Give Journal entries of A and h in their respective books. 4. — (a) If after closing Profit and Loss Account in a commercial business, an omission of a liability for goods purchased appeared, what would be necessary entry without disturbing the Profit and Loss Account ? (d) How would you arrange your books in order to show at any time your indirect liabilities for bills receivable under discount ? (c) What is the purpose of a private ledger ? What accounts does it usually contain ? 5. — Brown, who owned a one-third interest in a business, gave Smith, who owned a two-thirds interest, 9 100 for his interest in a doubtful account of 9300 against Jones. The book-keeper made the following entry to arrange the transaction in the books : Brown $200 Profit & Loss 100 To Jones $300 Was the entry correctly made ? If not, how should it be made ? How should returned goods be dealt with in a Merchandise Account ? 6. — A merchant in closing his books, wishes to include, as assets, accrued interest and also unearned insurance, and as liabilities, accrued rents and an appropriation for bad and doubtful accounts. (a) What Journal entries are necessary ? {fi) What disposition of these entries should afterwards be made ? 7.— (a) Upon receiving, as executor, an estate comprising cash, bank deposit receipts, and unrealized assets of various descriptions, per inventory, how would you deal with it in reference to the entries to be made in the books ? (d) What two important classifications of the receipts and of the dis- bursements are to be observed in the arrangement of the ac- counts ? (c) How would you deal with payments on account of estate, debts, • " expenses and legacies ? - . , , , i lo 8.— A has assets, cash, f400 ; merchandise, $1,500 ; plant and machinery, $5,000; real estate, $2,100; book debts, $1,900; liabilities, $4,500; capital, $6,400. B has assets, cash, $200 ; book debts $4,300 ; merchandise, $5,000; bills receivable, $1,000 ; plant and machinery, $2,500; liabilities, $6,600 ; capital, $6,400. From the above indicate which party is in the most favorable position and give reasons. 9 —(a) In what respects does the treatment of the Capital, and Profit and Loss accounts of a joint-stock company differ from that of the like accounts of a commercial business ? (d) Under what circumstances would Expense be an asset ? io.~On January 2nd, 1893, A became indebted to B in the sum of $1,000, for which amount he gave his Promissory Note, payable three months after dale at the Dominion Bank, Toronto. On February 2nd, 1893, B obtained a discount of this note. On March 2nd, 1893, B endorsed an accommodation note made by A in favor of C for $1,000, payable three months after date at Cana- dian Bank of Commerce, Toronto. Neither of these not"': are pro- vided for by the makers, consequently B has to pay both of them at maturity. On June 2nd, 1863, A paid B $500, and on the same date C paid B $600 on the joint account of A and C. A new note was given on June 2nd, 1893, by A and C, jointly and severally for $900, and accumulated interest on previous notes. This note is payable on demand. Candidate is not required to calculate the interest, but may state nominal amounts in all cases. This example being for the definition of methods only. The candidate i' to show the entries to be made on the Journal and Cash Book of B, so that the proper records may be kept by B without confounding these transactions with B's own bills payable. Clearness of record without undue verbosity is the desideratum. FiNAi, Examinations, May, 1894. MERCANTILE LAW AND ARBITRATION. TIME — 3 HOURS, I.— State shortly the difference between a Bill of Exchange, a Cheque and a Promissoiy Note, with a special reference to the steps necessary Jbi enforcing payment of each, respectively. 2.— What is the principle of law known as the appropriation of payments ? In what cases is this principle not applicable .'' 3. — What classes of Contract are by law required to be in writing ? 4 — To what extent is a Surety's liability aflfected by dealings between the creditor and the principal debtor ? What rights does a Surety acquire by paying off the debt ? 5. — What is meant by acceptance supra protest for honor, and what is its effect? 6. — {a) If the drawer of a cheque die before it is presented at the Bank for payment, is the validity of the cheque affected thereby in any way ? {b) What is the duty of the holder of a cheque, as payee, or otherwise, as regards its presentation, in order to have recourse upon the party from whom it was received ? 7.— (a) What are the legal requirements for the enforcement of a promise, under the Common Law ? {b) What instruments are to a certain extent exceptions to these require- ments ? 8. — («) What are the essentials to negotiability in a Bill of Exchange ? (b) What principles of law apply to the transfer of overdue and dis- honored bills ? 9. — In a reference as to a claim under an insurance policy as between insurer and insured, what is a necessary requisite to make the amount due under the award binding on both parties ? 10. — If an Arbitrator is bound by the submission to make a final determin- ation on all matters referred to him, what would be the effect of his award, if he excepts one matter out of his decision ? Final Examinations. INSOLVENCY. TIME— 3 HOURS. Companies. I. — Distinguish between the winding up Acts of Canada and Ontario, with special reference to the authority for the several stages of pro- cedure in the liquidation of a company ? 2. — What is the legal effect of the settlement of a shareholder s name upon a list of contributories by the Court ? 3. — {a) To what extent may persons affected by the voluntary winding up of a company seek the assistance of the Court ? {b) Is a voluntary winding up of a company a bar to the right of any person affected to have the company wound up by the Court ? 12 4.— What are the rights and limitations of the rights of landlords in event of a winding up order being made under the Ontario Act ? 5.- -What special obligations are imposed upon the Liquidator of a Joint Stock Company, other than, and subsequent to, the distribution of the assets among the creditors of a Company, and what steps are necessary to be taken by a Liquidator to free himself from such obligations ? Traders. 6. — If a bankrupt trader refuses to make ai assignment of his estate for the benefit of his creditors, what steps should be taken by the repre- sentative of the creditors to insure the equitable distribution of his assets among the said creditors ? 7. — A partnership business is assigned to you in trust for the benefit of creditors, also the private estates of each of the partners. State clearly manner and the order in which you would proceed to execute the trust. 8 — (a) What would be the effect, as regards the debtor and the creditors, of an assignment of a portion only of the debtor's estate ? (b) Is such an assignment permissible under the existing statute relating to the distribution of estates ? Whether permissible or not, give reasons for your opinion. 9. — What are the duties of an assignee-in-trust with respect to monies coming into his hands and payments out of such monies > 10.— An assignee, after distributing the assets of an insolvent estate, finds that he is a loser by over payments in connection therewith. How may he reimburse himself? (a) If the unsecured creditors have received a dividend ? {b) If the estate has been insufficient to pay preference and secured claims in full ? ^i 1