4RLF SB 3fl OM2 Up-to-date Regents Questions -IN- Bookkeeping C. W. BARDEEN, PUBLISHER SVF?AOUE, UP-TO-DATE REGENTS QUESTIONS IN BOOKKEEPING WM. J. ADAMS, PD.B. PRINCIPAL CKAMMAR SCHOOL No. 1, RENSSELAER, N. Y. SYRACUSE, N. Y. C. \V. BARDEEN, PUBLISHER Copyright. 1910, by C, W. Barrteen Up-to-date Regents Questions BOOKKEEPING 1 (a) State the two principal objects of bookkeeping, (b) What is the underlying principle of double-entry bookkeeping? 2 (a) Give a general rule for determining debits and credits. (b) Give (1) the names of two accounts that should never have a credit balance, (2) the name of one account that should never have a debit balance. 3 (a) Show the superiority of double-entry over single- entry in the matter of testing for correctness, (b) Give full directions for changing a set of books from single to double entry. 4 (a) Mention two essential points of difference between single-entry and double-entry bookkeeping, (b) Mention a business in which (1) single-entry would be advisable, (2) double- entry would be advisable, (c) What two advantages has the double-entry method over the single entry method? 5 Compare single entry bookkeeping with double entry as to (a) the kind of transactions recorded in the ledger, (b) the kind of accounts kept in the ledger, (c) the way in which trans- actions are recorded, (d) correction of .accounts. 6 (a) Mention the different classes of accounts used in double entry bookkeeping and state the use of each class, (b) What class of accounts is used in single entry? 7 (a) State the use of each of three principal books used in double entry bookkeeping, (b) If only one book could be saved in case of fire, which should it be? Explain. (9) 415787 10 KEGEKTS QUESTIONS Name two auxiliary books and illustrate the use of each by an entry. 9 Give the special use of each of the following books : (a) bill book, (6) order book. DEFINITIONS 10 Illustrate the form of each of the following (a) certified check, (&) invoice, (c) shipping receipt, (Omit printed limitations) , (d) account sales, (e) due bill. 11 Define five of the following: (a) royalty, (&) bonus, (c) unsubscribed stock, (d) bond, (e) surplus, (/) stock certificate. 12 Define (a) auxiliary book, (b) liability inventory, (c) net proceeds, (d) pass book, (e) sales ledger. 13 State clearly the meaning of each of the following business terms: (a) account payable, (b) account sales, (c) bills receiva- ble, (d) certified check, (e) contra entry. 14 Define the following terms and discuss fully the use made of each of these discounts in business practice: (d) trade discount, (b) merchandise discount, (c) bank discount. 15 Explain the following bookkeeping terms: (a) cash, (b) trial balance, (c) inventory. 16 Define (a) collateral security, (a) assets, (c) balance, (d) sinking fund, (e) preferred stock. 17 Define each of the following : (a) consignment, (b) contract, (c) invoice, (d) balance sheet, (e) account sales. 18 Define (a) power of attorney, (b) bill, (c) receipt, (d) protest, (e) shipment. 19 Give the meaning of each of the following: (a) lease, (b) posting, (c) assignment, (d) commission, (e) bill of lading. BOOKEEPIXG 11 20 Define each of the following: (a) insolvency, (b) account current, (c) goodwill, (d) partnership, (e) creditors. 21 Define (a) statement, (b) waybill, (c) fixed, (d) asset, (e) resources, (/) capital. 22 Give the meaning of each of the following: (a) ledger, (b) stocks, (c) account, (d) entry, (e) solvency. CASH BOOK 23 What is the general principle regarding the debits and credits in a cash book? (b) Give directions for opening and balancing such a book, (b) How may the correctness of the cash book be tested? 24 (a) Rule the debit page of a cash book having three special columns and designate the heading for each column. (&) State the chief advantage of using special columns. 25 (a) Explain how the cash book is posted in a double entry set of books. (&) Tell how the bank pass book and check book are used, (c) How often should the cash book be bal- anced? 26 Assuming cash on hand to be SI 00, rule and. write a cash book covering transactions of at least three days, including both payments and receipts. Bring down balance for each day. 27 Enter in a cash book (folio form) the following transac- tions (Rule and balance each day) : Jan. 3, 1899. Cash on hand 3500. Sold Frank Booth merchandise for cash $30. Paid Roberts & Co. for merchandise $100. Arthur White paid his note $150. Jan. 4. Paid my note in favor of Paul Jones $400. Paid clerk's salary $25. Received for sales of merchandise $225. 28 Arrange the following in proper form in a cash book and balance the book: March 23, 1898, cash on hand in morning 12 UP-TO-DATE EEGENTS QUESTIONS $10.28. Received from James Ball $3. Paid for repairing bicycle $1.75. Received for work $1.50. Paid for hat $3, for shoes $3.50. Loaned John Bell $5. Received for week's wages $10. 29 Enter in a cash book, folio form (separate pages for cash received and cash paid out), used as a book of original entry, the following transactions for posting to the double entry ledger: Feb. 1, 1900. Cash on hand $120.50. Bought merchandise of Rice & Co. for cash $38.60. Paid my note in favor of Marsham .& Peters $25. Cash sales $91.69. Feb. 2. G. H. Adams paid his note for $175. Sold William Butler merchandise for cash $18.90. Paid C. C. Bennett cash to balance account $175. Cash sales $98.60. (Rule oft and bring down balance.) 30 The footings of a cash book are Dr. $864, Cr. $753. Cash on hand by actual count is $50. State two theories that would serve as a guide in searching for the error. 31 Enter in a cash-book from which postings are made direct to the double entry ledger, the following transactions: Feb. 18, 1899. Sold merchandise to Al Hoadley for cash Si 18. 25; paid my note in favor of D. Way $100, and interest $1.25; paid C. B. Astor for merchandise $216.30; T. Allen paid his account due May 18 $110, less discount at 6%. 32 Compute the cash value of the following account May 31, 1898, interest at 5%: Dr. JAMES SMITH Cr. 1898 1898 April 25 Mdse at 60 days.... $1000 !l April 1 Cash $560 i| May 21 Cash 324 JOURNAL 33 (a) Give a general rule for journalizing (determining debits and credits), (b) Show how this rule applies to the jour- BOOKKEEPING 13 nalizing of transactions involving (a) bills receivable, (b) bills payable. 34 (a) What is an original entry? (b) When should it be made? (c) What should it show? (6) Why is an original entry specially important ? 35 Explain the advantage of controlling accounts and special columns in books of original entry. 36 Explain why it is necessary to make full explanations of business transactions in connection with the original entries. 37 (a) Tell how to journalize (a) bills payable, (b) bills re- ceivable, (b) Consider interest in both cases. 38 (a) Describe a business transaction the journal entry for which would require the use of the following accounts : Cash, Notes Receivable, Discount. (b) Describe a business transaction the journal entry for which would require the use of the following accounts : William Grand, Merchandise, Notes Payable. 39 (a) What is the purpose of an expense account? (b) What items appear on its debit side? (c) What items may appear on its credit side? Give examples to illustrate each. 40 (a) What are the journalizing rules for personal accounts? (b) Explain fully the advantages to be gained by using a special column journal, (c) Mention two kinds of entries that may ap- pear on the debit side of the proprietor's account. 41 Give a rule for debiting and crediting each of the following : interest, cash, furniture and fixtures. 42 (a) Distinguish between an expense account and a furni- ture and fixtures account when both are kept, (b) Which of these accounts includes the other when only one is kept? (c) Under what circumstances would an entry appear on the credit side of furniture and fixtures account" 14 UP TO-DATE REGENTS QUESTIONS 43 Rule a sheet for a six column journal and illustrate its use by correctly entering in it the following: John Jones com- menced business April 1, 1987, with the following resources and liabilities: cash $5000, merchandise $3500, note against James Hart $600, note in favor of Henry Morgan $250, account in favor of Wilson and Son $38. 44 You pay your 30 day note for $250 with interest. You receive payment on James Whelan's $975 acceptance 10 days in advance of maturity. Write the journal entries, calculating interest at 6% in each case. Give the reason for each debit and credit. 45 (a) Add to each entry given below an explanation that will show the transaction involved: (1) Mdse $1600 To Henry Grayson $1600 (2) Cash : $475 To Notes receivable $450 To Interest $25 (b) Give the different rules of debit and credit applied in making the entries given in (a) . 46 Describe a transaction that would require each of the following journal entries: a Notes receivable $490 Merchandise discount $10 To JohnReed $500 b Furniture and fixtures $375 To Notes payable $200 To Henry Hammond $175 47 You owe Thomas M. Bailey, Chicago, 111., $500. Show in detail how you would make payment. Illustrate. Give the entry of the transaction you would make in your books. BOOKKEEPING 15 48 John A very draws on Samuel Rose in favor of William Rider for $100 at 10 days sight. Make the proper journal entry for each of the three parties. 49 H. M. Kerr and O. E. Weir are partners in a manufac- turing concern under the firm name of Kerr & Weir. Their investments are as follows: H. M. Kerr 30,000, O. E. Weir $20,000. They decide to incorporate their business with a cap- ital stock of $75,000, consisting of 750 shares at $100 a share. The partners are to receive paid up stock for their respective interests and goodwill as follows; H. M. Kerr 350 shares, O. E. Weir 250 shares. A. S. Miller, W. G. Burton and J. M. Ronan each subscribe for 10 shares. The rest of the capital stock, 120 shares, is not to be sold till later. The following list of assets and liabilities of the old firm has been accepted by the corpora- tion : Assets Liabilities Accounts receivable.. $12000 Accounts payable $4800 Raw materials 9000 Notes payable 1500 Plant 9000 Real estate 10000 Cash 7600 Finished goods 8700 Make the necessary journal entries (a) to close the books of the old firm, (6) to open the books of the corporation. (A new set of books is to be used by the corporation.) LEDGER 50 (a) Give five important steps in closing a double entry ledger. (/?) For what purpose is a' ledger closed ? 51 Mention three tests that may be applied to determine the correctness of a double entry ledger. 16 UP-TO-DATE REGENTS QUESTIONS 52 Explain the importance of placing the pages of the ledger accounts in the original entry books as you post. 53 How would you determine whether an item on the Dr. side of the ledger is an asset or a loss? Give illustrative examples. 54 During the year ending Dec. 31, 1915, George Butler's books have been kept by single entry. Explain fully how to ascertain his net gain for the year. 55 Describe a method of keeping the merchandise account of a business so that the correct percentage of loss or gain on sales may be readily ascertained. 56 State the process of closing a merchandise account and illustrate, using the following data: purchases $3420, sales 4873, merchandise on hand $2315. 57 A bookkeeper made the following errors while posting: a debit of $47 to Merchandise was posted as $74; a debit of $140 to Notes Receivable was posted to the credit side of the account and a debit of $75 to Expense was omitted entirely. If no other errors were made, how much would the ledger be out of balance and which side of the trial balance would be the larger? 58 (a) Two ledgers are before you. One is the ledger of a partnership concern just before the partnership is converted into a corporation; the other is the new ledger of the corporation. What differences should you find in the accounts in the two ledgers ? (b) In what way does the disposition of the net profit differ with respect to partnerships and corporations? 59 A broker buys for you 450 shares of B. & O. R. R. stock Mar. 12, 1902 104 and sells it Apr. 11, @ 107J. He charges brokerage \% each way and interest at 6% on cost of stock. Show the account properly closed in the broker's ledger. BOOKKEEPING 17 60 On Jan. 1, 1914, Albert Hardy began business with a cash investment of S2500. During the year he made the following additional investments: May 1, $500; Aug. 15, 8200. On Sept. 30 he withdrew $250. On Dec. 31 his accounts show a loss for the year amounting to 84197.33. Show Mr. Hardy's ledger account closed up at the end of the year. 61 A bookkeeper made the following journal entries: Cash 82500 To William Brown 82500 Expense 837.50 To Cash 837.50 Notes receivable $98.25 To Henry Brown 898.25 Mdse 8125 To Bremmer & Co 8125 He then posted the above entries as follows: Cash William Brown Expense N 8250 1.50 82500 837.50 98.25 Notes Rec. Bremmer & Co. Mdse 898.25 8125 8125 Copy the ledger accounts given above, check the posting and tell what errors were made in the posting. 62 Show how a double-entry ledger affords a better proof of its correctness than a single-entry ledger. 18 UP-TO-DATE REGENTS QUESTIONS BANK BOOK 63 Rule a page of your bank pass book and make entries in it involving (a) cash deposited, (b) a note discounted. 64 On January 10 Hiram Henning's check book showed a bank balance of $3245.10. On the same day his pass book show- ing a balance of $3698.40, was returned by the bank. The fol- lowing checks were not returned by the bank: no. 6, $43.10; no. 8, $25.90; no. 10, $36.27; no. 13. $75; no. 18, $120; no. 23, $80; no. 27, $73.03. Prepare a statement verifying both the pass book balance and the check book balance. 65 HALE & ELKINS 1916 1916 Jan. 5 Goods returned $50 Jan. 1 Invoice 3 |io n 30 $510 50 Freight prepaid on above in- voice 17 ?0 ! The above represents Howard Thompson's account with Hale & Elkins. Mr. Thompson resides in Elmira, N. Y., and transacts all of his business at the Cornmercial National Bank of that city, Henry Simmons, cashier. On January 10 he gives his check to this bank in payment for a bank draft drawn on the Trades Bank of Chicago and payable to Hale & Elkins for an amount sufficient to settle the above account. Write the check and the bank draft called for in the above transaction. BOOKKEEPING 19 66 (a) What are the usual steps taken in opening a bank account? (b) What information should' appear on a check book stub? Why? 67 (a) How should a depositor keep his account of cash in bank? (6) How does the bank make settlement? (c) In case many checks are drawn daily, how would the depositor reconcile his account with the bank's books? 68 Explain each of the following: (a) deposit slip, (b) bank pass book, (c) check book stub. 69 Write a bank note for $300, dated to-day, due in 60 days, of which you are the maker and John Carter is the payee. 70 Give ruling and headings for a folio of a bill book (either bills receivable or bills payable). 71 Reconcile the following bank account: balance per check book $972.13; balance per pass book $1986.24; checks outstand- ing $423.89, $63.14, $263.84, $73.28, $276.88; items not entered in the check book, interest on bank balance $14.23 and exchange on out of town checks $2.15. PROMISSORY NOTES 72 Define indorsement, accomodation note, acceptance, nego- tiable paper, protest. 73 Write the note required by the following data: Date: December 30, 1916 Amount: $487.62 Time: 60 days Payee: John L. Carson 74 On Tan. 16 John Longley borrows $500 from the Mohawk National Bank on his 60 days note, giving your name as security. a Write the note in complete form. 20 UP-TO-DATE REGENTS QUESTIONS b Explain to what extent you are liable on the note. 75 Write (a) promissory note of which Alfred Brown is the maker and James Lockwood the payee, (b) a sight draft of which you are the drawer, Philip Rowe the payee and William Wallace the drawee. 76 Write a promissory note of which you are the maker, John Jones the payee, and James Smith the indorser. 77 Illustrate the form and state the purpose of each of the following: (a) indorsement in blank, (b) indorsement in full. (c) indorsement without recourse. 78 You hold a promissory note payable to your order: write (a) an indorsement in full, (b) an indorsement in blank, (c) an indorsement without recourse, as each would appear on the back of the note if used. State the particular object of each form of indorsement. 79 You hold a promissory note payable to your order which you wish to transfer without becoming responsible for its pay- ment, (a) Write the proper indorsement, (b) Mention and il- lustrate two other kinds of indorsements. 80 A promissory note for $485, with interest at 5%, given Feb. 1, 1897, bears the following indorsements: July 15, 1897, $12; Sept. 1, 1897, $25; Nov. 24, 1897, $65. How much is due on settlement Jan. 25, 1898? 81 A promissory note for $250 draws interest at 6% from June 15, 1898. How much would remain due Jan. 1, 1899 if it bore the following indorsements: July 1, 1898, $50; October 15, 1898, $125? 82 On a promissory note for $1800, dated Jan. 2, 1900 and bearing 4% interest, the following payments were made: Feb. 17, $75, May 2, $50, July 12, $125. How much was due Jan. 2, 1901? BOOKKEEPING 21 83 A promissory note for SI 250, dated May 5, 1900, bears the following indorsements: Aug. 15, 1900, $125; Jan. 4, 1901, 250; April 19, 1901, $143. How much is due June 1. 1901? 84 On a. promissory note for $1500, dated Jan. 11, 1901 and bearing interest at 5%, the following payments have been made: Feb. 26, SI 75, May 16, S10, July 16, S210. How much was due Jan. 11, 1902? 85 On a promissory note for $1200, dated Jan. 3, 1898 and bearing 5% interest, the following payments have been made: Feb. 15, $50, Aug. 1, S15, Oct. 1, $250. How much was due Jan. 3, 1899? 86 A note for $725, with interest at 6%, was given Jan. 10, 1897; payments were made as follows: Aug. 1, $15, Aug. 30, S125, Sept. 25, $236. How much was due at settlement Oct. 30? 87 A note for $1250 with interest at 5% was given January 15, 1897. Payments have been made as follows: April 15, $25; June 19, $60; August 31, $200. How much is due Sept. 27, 1897? 88 On a promissory note for $1500, dated Jan. 11, 1899 and bearing 5% interest, the following payments have been made; Feb. 1, $75, July 1, $50, Nov. 16, $150. How much was due Jan. 11, 1900? 89 On a promissory note for $1527, dated Sept. 1, 1898, and bearing interest at 4J%, the following payments have been made: Oct. 15, 1898, $125; Nov. 1, 1898; Dec. 15, 1898, $5; Apr. 1, 1899, $250. How much is due at settlement June 15, 1899? 90 On a promissory note for $1800, dated Feb. 1, 1899 and bearing 5% interest, the following payments have been made: Mar. 16, $50; May 1, $100; July 26, $25; Oct. 11, $125. How much was due Feb. 1, 1900? 22 UP-TO-DATE REGENTS QUESTIONS 91 A promissory note for $800, dated January 6, 1896, bears interest at 5%. The following payments have been made on it: June 1, 1896.. 15; September 1, 1896, $40; January 5, 1897, $150. How much is due Feb. 5, 1897? 92 A promissory note for $650 is made Sept. 1, 1897, interest at 5%. Payments have been made as follows: Jan. 2, 1898, $10; Feb. 1, 1898, $35; July 1, 1898, $125. How much is due at settlement Sept. 1, 1898? 93 (a) What is the present value of a promissory note for $500, dated January 1, 1897, payable one year after date and bearing interest at 6%? (b) If such a note were payable to your order state how you could transfer it without becoming respon- sible for its payment. DRAFTS AND BILLS OF EXCHANGE 94 Define (a) draft, (b) time draft, (c) sight draft, (d) bill of exchange. 95 What is the difference in meaning between "draw at sight in 10 days" and "draw at 10 days sight"? 96 You have just accepted a draft and forwarded the same to O. K. Adams, Baltimore, Md., who drew on you at 10 days sight for balance of account due; face of draft $850, date of draft January 18, 1916. Write the draft in the complete form in whcih it is forwarded. 97 James Griffin owes George Adams $80 and George Adams owes Frank Williams $80. Write a sight draft that will settle all accounts. Designate drawer, drawee and payee. 98 William Brown owes Oliver Stewart $25 and Oliver Stew- art owes James Perkins $25. Write a sight draft which when paid will settle all the accounts. BOOKKEEPING 23 99 You draw a draft of $500 at 30 days after date, in favor of Porter Carr, on Edmund Strong, who accepts the draft. Write the journal entries of the several parties. 100 Write a 10 days sight draft of Jones Brothers in favor of Martin Fink for $32. 101 Y\ r rite a three party time draft showing acceptance and make the journal entries of each party to the draft. 102 You owe Jacob Astor $100 and William Wild owes you $100. Write a sight draft to balance these accounts. 103 Find the cost of a draft on London for 150, exchange at 4.89. What does this rate of exchange indicate as to the bal- ance of trade? Explain fully. 104 An importer in New York city owes 6230 lire in Rome; what will it cost him to remit (a) direct to Rome at 5.27 lire a dollar, (6) through London at $4.88 a , there buying exchange on Rome at 25.20 lire a ? 105 A merchant in New York city owes 5260 francs in Paris; what will it cost to remit (a) direct to Paris at 5.15 fr. a dollar, (&) through London at 4.89, there buying exchange on Paris at 25.19 fr. a pound sterling? 106 Find the cost of a draft on London for 15 4s. 6d. ex- change at $4.86, brokerage -$% BILL MAKING 107 W. E. Chase, Riverhead, N. Y., ordered the following list of goods from Arlington, Warren & Co., 169 Broadway, New York: 25 doz. men's linen handkerchiefs @ $1.87i; 15 doz. women's embroidered handkerchiefs @ $2.121-; 8 doz. child- ren's lawn handkerchiefs @ 85 i\ 6-1 doz. pairs men's kid gloves, assorted sizes, @ $11.75; 7 doz. pairs men's suede gloves, sizes 8 to 10, @ $7.25. 24 UP-TO-DATE REGENTS QUESTIONS a Under date of January 5, make out a bill for the above order, terms 3% cash in 10 days. b Make the entries for both parties when the bill is paid on January 15 in accordance with the terms. 108 Write in proper form a bill of at least three items sold on which there has been a partial payment in cash previous to this date. Assume that the bill is settled and receipted to-day. 109 Make in due form a bill of merchandise sold by you con- taining at least four items. Assume that the bill has been paid and write the receipt. 110 Bought a bill of goods amounting to $425 list price, com- mercial discounts of 20, 10, 10 and 5, with 3f days credit, or an additional 5 off for cash ; find the net cash price. 111 Make a receipted bill in proper form of the following items: John Roe bought of a student, September 1, 1897, 2 barrels flour at 5.50; September 3, 100 Ibs. meal at 75 cents; September 7, 50 Ibs. sugar at 5 A- cents; September 9, 4 Ibs. coffee at 35 cents. Paid by cash September 14. 112 John Brown bought of William Johnson the following: Feb. 1, 1901, 2 barrels of flour @ $5.75; Feb. 5, 50 pounds corn meal @ 4.V cents; Feb. 7, 100 pounds sugar @ 6 cents; Feb. 8, 6 pounds coffee @ 38 cents; Feb. 11, 2 pounds tea @ 80 cents. A cash payment of $15 was made on Feb. 28, 1901. Balance paid March 27, 1901. Make a receipted bill of these items in proper form. 113 Write in proper form a receipted bill of at least five items sold. Assume that a cash payment for part of the amount was made August 24, 1900 and the balance paid September 26, 1900. 114 Make a receipted bill of the following : Sold James Wat- son as follows:. Jan. 2, 1896, 1 barrel flour @ $4.50; Jan. 7, 3 BOOKKEEPING 25 Ibs. coffee @ 40 cents; 10 Ibs. butter @ 23 cents a lb.; Jan. 10, 20 Ibs sugar @ 5i cents a lb; 5 gallons kerosene oil @ 12 cents a gallon. EQUATION OF ACCOUNTS 115 Dr. JOHN ALDEX Cr. 1X98 1898 Jan. IS To mdse $250 00 Feb. 11 By cash S1SS 50 Mar. May MO 32 Apr. -27 IX) 31 June 15 By mdse 170 no ^y- " \.^i * Find the average time for the payment of the above account. If the account is settle to-day, with interest at 6%, how much should be paid? 116 Find the equated time of payment of the count : Dr. WM. JONES Cr. following ac- 1896 5 Mv 1 If Mdse at :]() days . at 10 days - 00 tH) 00 10 [e Ca^n $100 00 15 11 40 00 x j L in s 1 ' at 20 days . SO 00 1 O *' 55 00 i' X at .'JO days. 50 00 117 Find the equated time for the payment of the following bill: Sold J. M. Richards merchandise as follows: ,Oct. 11, 1897, $468.25 on 4 months credit; Nov. 26, 1897, $365.50 on 6 months credit; Dec. 16, 1897, $623.25 on 6 months credit; Jan. 4, 1898, $536 on 5 months credit; Jan. 17, 1898, $435.90 on 6 months credit. 118 Find the equated time for paying the following account: William Jones bought merchandise as follows: May 20 at 30 days $486.72, June 18 at 60 days $712.28, July 14 at 90 days, $513.28, August 18 at 90 days $1287.72. Paid cash as follows: May 24, $642.140 August 24, $467.12; September 10, $357.86; October 19, $532.88. 26 UP-TO-DATE KEGENTS QUESTIONS 119 Find the equated time of payment of the following ac- count : Sold Richard Jones merchandise as follows : Jan. 4 $ 50 at 90 days Feb. 15 150 at 90 days Mar. 3 80 at 30 days May 10 200 at 60 days LETTER WRITING 120 Write a letter to Smith & Co., Chicago, 111., ordering 1000 bushels of wheat. State how and when you wish it shipped and the limit as to price, also giving such references as would be necessary if you were unknown to the firm. 121 You have received the following telegram from Fisher & Martin, Chicago, 111.: Goods received. Piece six not as ordered. Explain. Entire lot damaged by water. After investigating the matter write an explanatory letter. 122 You wish to retire from the wholesale provision business. Write a letter to Thomas Wolverton, Poughkeepsie, N. Y., as a possible purchaser, giving necessary details as to stock on hand, volume of business and gain during past year. Mention the price for which you are willing to sell. 123 Write a letter to Fish & Wilson, making application for a position as bookkeeper. State your qualifications for the place and give references. 124 Write a letter of guaranty to Farnum Bros., assuming re- sponsibility for payment of bill of goods purchased by Carl Jones to the amount of 250. 125 Write in proper form an answer to the following adver- tisement: Wanted An expert accountant. State qualifica- BOOKKEEPING >: tions and give references. Address W. F. Benedict, 1 Broadway, New York. 126 Write a letter applying to Watson & Wait for a position as bookkeeper, stating the facts that should be given in such a letter. 127 Write to Arthur Williams, a letter of recommendation for John Holbrook of Schenectady, expert bookkeeper. Give special attention to English, punctuation and form. 128 Write a business letter ordering goods on account and giving references as to your credit. BALANCE SHEET AND TRIAL BALANCE 129 (a) Tell how one should proceed in preparing a balance sheet (not the six column form). (&) What are the three im- portant items of information to be obtained from the balance sheet? 130 (a) Describe two methods of making a trial balance. (&) What advantage has each over the other? (c) How often should a trial balance be made? (d) Give reasons. 131 (a) Give the names of three accounts whose balances show resources or liabilities, (b) Mention two accounts whose balances show losses or gains. 132 (a) A trial balance may be made either by taking the total footings of all the ledger accounts or by taking the balances of accounts only, (b) Which is the better method and why? 133 (a) Mention two accounts which if correct can never show a credit balance ; one which if correct can never show a debit balance. Give the reason in each case. 134 Mention three possible errors that would prevent a cor- rect trial balance and state what steps should be taken to discover such errors. 28 UP-TO-DATE REGENTS QUESTIONS 135 From the following data make ~a balance sheet showing the gain or loss and the present worth of the business: Ledger Footings Dr. Cr. Proprietor $8000 Cash , $12460 $10175 Merchandise $16520 S14240 Bills payable $2500 $2800 Bills receivable $6000 82400 Expense $640 James Robinson.' $460 $400 William Brown $180 $747 Merchandise on hand amts. to .... S4685 136 George Atkins wishes to change his bookkeeping from single entry to double entry, continuing the use of the old ledger, the open accounts of which show the following footings : George Atkins (proprieter) $5218.45 A. P. White $314.50 113.25 Charles Martin 940.60 500 Seavey & Co 1220.40 John Jackson -. 526.80 900.15 Other resources and liabilities are as follows: merchandise $3017.50; cash $1855.25; real estate $4250; bills receivable $2800; bills payable $1550.25. Prepare a trial balance of the ledger as it would appear when changed to the double entry system, and state the proprietor's present worth. 137 In closing a ledger the cash on hand was $3250.25 and merchandise per inventory was $2616.46; the balances of ledger accounts were as follows: merchandise debit $827.56, bills payable credit $1125.84, bills receivable debit $1812.71, John Sweet credit $1249.16, James Reese debit $321.83, Samuel Smiles credit BOOKKEEPING 29 S298.33, William Russell debit $1866.91, discount credit $405.93; the original investment was $5000. Make a trial balance and a balance sheet. 138 From the following ledger footings and inventory make a balance-sheet showing the resources and the liabilities, the proprietor's present worth and net gain or loss: Dr. Cr. Proprietor S5500 Cash S9500 6400 Merchandise 8775 7100 Bills receivable 1500 500 Bills payable 675 900 James Roberts 400 525 Expense 595 50 JohnHillis 600 325 Jay Williams 150 895 Merchandise on hand per inventory $4500. 139 From the following data make a statement or a balance sheet showing in detail resources and liabilities, the gains and losses and the present worth of the business : Dr. Cr. Proprietor S8000 Cash 812560 9240 Merchandise 18927 16295 Bills payable 2500 2800 Bills receivable 900 400 Shipment to Boston (goods all sold) 650 875 Wheat 4200 4000 Johnson & Stokes 2119 246 A.B.Wilson.. 180 180 30 UP-TO-DATE BEGENTS QUESTIONS Inventory shows on hand general merchandise worth $8427 and 1000 bushels of wheat worth 75 cents a bushel. 140 F. M. Barker invests $3000 and Edward Everts $2000 in a partnership business, gains and losses to be shared in pro- portion to investment. At the end of one year the ledger shows the following footings : Dr. Cr. F. M. Barker $3000 Edward Everts 2000 Cash $15000 12000 Merchandise 22000 21570 Bills payable 2500 2500 Bills receivable 4000 2500 Expense 1420 Jones Brothers 1590 3580 Wheeler & Adams 650 The inventory shows merchandise on hand worth $5800. (a) prepare a balance-sheet showing the loss or gain and the net capital of each partner. (6) Describe the process of closing a double entry ledger. (c) Close the merchandise account of the ledger mentioned in this question. 141 From the following ledger balances determine the gains and losses, the resources, liabilities and present worth: Dr. Cr. Proprietor (investment) $5000 Merchandise $8250 6480 Cash 9560 8132 Bills receivable 1550 Bills payable 780 880 Expense 530 50 James Hill 425 150 Walter Wilson 630 840 Jones & Smith... 193 BOOKKEEPING 31 Merchandise on hand per inventory $4125. 142 A puts $3000 and B $2000 into a partnership business. At the end of one year their ledger shows the following balances: Dr. Cr. Cash $10280 $8400 Merchandise 9150 9460 Bills receivable 500 200 Jones Bros 150 985 Smith & Wilson 1640 Expense 495 Inventory shows merchandise on hand worth $2500. How much should each partner receive if the property is divid- ed in proportion to the investment? 143 From the following ledger footings and inventory deter- mine the gains and losses, the resources and liabilities, and the present worth of the business: Dr. Cr. Proprietor $10000 Merchandise $14725 12580 Cash 17256 13096 Expense 1648 Bills payable 2000 2000 Bills receivable 8280 50000 Interest and discotint 148 W.A.Wallace 175 S. B. Kraft 1556 [Merchandise on hand per inventory $7640. 144 From the following ledger balances and inventories make a balance-sheet showing the resources and liabilities, the pro- prietor's net capital (present worth) and net gain or loss; 32 UP-TO DATE KEGENTS QUESTIONS Dr. Cr. Proprietor 819778 19 M. M. Joslyn 8412 05 H. P. Martin 171 04 E. D. Rossmann 688 05 Merchandise 163 31 Cash 4504 24 Bills receivable 500 00 Bills payable 500 00 Real estate 15059 17 Store fixtures 61 50 Interest 4 67 Expense 99 60 On hand per inventories merchandise $4965; real estate $15,000; store fixtures $60. 145 From the following data make a balance sheet: Ledger Footings Dr. Cr. Proprietor $1500 89500 Cash 18750 12972 Merchandise 16470 14280 Bills receivable 2140 1000 Bills payable 1000 4640 Interest and discount 328 216 Expense 1964 241 Shipment to Chicago 580 636 Johnson & Robbins 1506 853 J. S. Wilson 100 Merchandise on hand per inventory $5427. BOOKKEEPING 33 146 Find the present worth and the net gain or loss shown by the following ledger footings: Dr. Cr. Proprietor 86250 Merchandise S8275 5486 Cash 5293 4112 Bills payable 260 560 Bills receivable 1400 Expense 390 Abram Morse 652 135 Wilson Brothers 459 186 Inventory shows merchandise on hand worth $5263. 147 From the following ledger footings and inventory make a balance sheet showing the resources and liabilities and the proprietor's present worth and net gain or loss: Dr. Cr. Proprietor $4000 Cash S8450 5850 Merchandise 9500 8000 Bills payable 500 10000 James Green 2500 Bills receivable 20000 500 Expense 350 100 * William Jay 1200 200 Lewis Hayne 150 Merchandise per inventory $2500. 148 In a certain ledger the footings of the accounts which show resources and liabilities are as follows: 34 UP-TO-DATE EEGEKTS QUESTIONS Dr. Cr. Cash $8536 63 2138 17 Bills receivable 3650 00 2400 00 Merchandise (inventory) 7968 33 Personal accounts 840 80 3474 41 Bills payable -. 500 00 850 00 The original investment was $10,000. Find the present worth and the net gain or loss. 149 From the following data make a balance sheet showing the gain or loss and the present worth of the business : Dr. Cr. Proprietor 4000 Merchandise $8260 7120 Cash 6230 5088 Bills receivable 3000 1200 Bills payable 1250 1400 Expense 320 Wilson Burr 90 373 John Bangs 231 200 Merchandise on hand per inventory $2342. 150 From the following ledger balances and inventories make a balance sheet showing resources and liabilities, the pro- prietor's net capital (present worth) and net gain or loss: Dr. Cr. Proprietor $5768 50 Cash $2763 15 Merchandise 3600 48 Bills receivable . 575 50 Bills payable 931 56 Expense 382 John Loren 105 25 John Philips 1550 BOOKKEEPING 35 Furniture and fixtures 590 40 Interest 7 61 Ralph Johnson 240 89 Inventories: merchandise $6400; furniture and fixtures $450. 151 M. O. Banker invested $4000 and F. J. Eaton $6000 in partnership business, gains and losses to be shared in proportion to investment. At the end of one year the ledger shows the following footings : Dr. Cr. M. O. Barker $4000 F.W.Eaton 6000 Cash 812000 10000 Merchandise 2850 22700 Bills payable 2000 2500 Bills receivable. . . i 5500 3000 Expense 1400 Edward Everts 1900 3500 James Watson 650 Inventories: merchandise $9500, expense $1000. Prepare a balance-sheet in proper form, showing net capital and net gain or loss of each partner. 152 From the following ledger footings and inventories make a balance sheet: Dr. Cr. Proprietor $825 $9 000 Cash 11505 15 9 897 50 Merchandise 16981 79 1248934 Bills payable , 3650 4 010 40 Bills receivable 5480 4 283 Interest 75 12 89 75 Trade discount.. 13333 18960 36 UP-TO-DATE EEGENTS QUESTIONS Furniture and fixtures 650 Expense 140 Peter White.... 127650 84740 Malcolm Jones 917 09 1032 89 George Goldring 804 598 89 Inventories: merchandise $6575; furniture and fixtures $500. 153 Find from the following ledger footings the net gain or loss, and the present worth of the business: Dr. Cr. Student $4000 Merchandise $1000 586 William Jones 855 75 Expense 24 James Wilson 150 80 Commission 5^ Bills payable 125 200 Shipment to Chicago 1640 Cash 2,428 1225 154 From the following balances of accounts and inventory (the proprietor's account being omitted) determine the pro- prietor's net investment, the gain or loss and the present worth: Dr. Cr. Cash $4197 03 Merchandise 1035 06 Bills receivable. . , 459 n Bills payable $133 55 John L. Stern 73 50 R.W. Fisk&Co 525 Expense 264 25 Interest and discount 4 65 E. N. Jones&Co 99^10 BOOKKEEPING 37 Cr. S22350 51723 v 8964 2500 200' 175' 2967 ake Merchandise on hand $935.82. 155 At the close of a year's business a ledger shows the fol- lowing footings : Dr. Cash 828560 Merchandise 48892 Bills payable 7894 Bills receivable 5000 Interest and discount 420 Expense 1250 Personal accounts 6863 Stock (original investment) Merchandise on hand per inventory is worth $65001. a statement showing gain or loss and present worth. 156 Make a balance sheet from the following ledger footings and inventories : John Smith, proprietor Cash Merchandise Furniture and fixtures Bills payable Bills receivable. . . . : Expense Interest Mdse discount R. E. Dixon Semuel Brown , Roscoe Davis George Warner Inventories: merchandise $2724.60, $735, expense $166.50. $150 S4285 88 5622 10 3986 60 4235 75 1750 25 750 500 1250 2796 80 1970 210 9 33 15 40 16 25 10 825 40 1577 60 1050 985 375 .800 furniture and fixtures 38 UP-TO-DATE REGENTS QUESTIONS 157 Prepare a six column balance sheet from the folio win footings and inventories: Dr. Cr. Proprietor $8626 Mdse $3158 50 218 45 Furniture and fixtures 642 50 Bills payable 708 923 Interest and discount 5 93 2 97 Loss and gain 33 50 Cash 6443 14 986 66 Expense .41 13 C. C. Jones 280 Inventories are merchandise $3165, furniture and fixtures, $640, expense $15,50 158 Show the Loss and Gain account and the proprietors' accounts that would result from closing the books of Dean & Ford for the year ending Dec. 31, 1909. The open accounts and their respective footings were as fol- lows: W. E. Dean, proprietor, Dr. $700, Cr. $10,000; H. A. Ford, proprietor, Dr. $950, Cr. $10,000; Mdse Dr. $29,105, Cr. $20,016. 10; Furniture and Fixtures Dr. $785.30, Cr. $50; Bills Payable Dr. $7789, Cr. $8567. 50; Bills Receivable Dr. $12,000, Cr. $11,200; Joseph Wilkins Dr. $590.20, Cr. $786.45; William Porter Dr. $659.80, Cr. $434.25; Expense Dr. $536.28; Insurance Dr. $125; Mdse Discount Dr. $676.55, Cr. $1321,05; Interest and Discount Dr. $701.40, Cr. $529.90. The cashbook feotings were Dr. $25,441.20, Cr. $17,154.93. Inventories were mdse $14,397.68, furniture and fixtures $718.10, expense $45.75. 159 (a) Make cashbook and journal entries of the following transactions in form for posting directly to the double entry BOOKKEEPING 39 ledger (Enter all cash items in cashbook; post cash items from cashbook only) : June 1, 1904. Clarence White began a wholesale grocery business in Troy N. Y. with an investment of $18,000 cash. June 2. Bought the stock of Dawes & Co. for $12,750 and their furniture and fixtures for $1050, paying cash. June 3. Bought of John D. Waterhouse, New York, 25 boxes wool soap @ $3; 20 cases, 400 5 Ib sacks pastry flour @ 15 e a sack; 10 bbl. 600 Ib oyster crackers @ 8cf. Terms 3 / 5 n /30 (3% off if paid in 5 days, net 30 days). June 4. Cash sales for week $168.85. June 6. Sold Houghton & Son, Salem, subject to draft after 5 days, 20 bags ice cream salt @ 75 e'; 75 bbl., roller process flour @ $4. June 8. Bought of T. J. Mather, Jackson, 1 car, 500 bu. potatoes @ 60 i June 10. Sent J. D. Waterhouse N. Y. draft in payment of bill of June 3. June 13. Sent T. J. Mather a draft at 10 days on Houghton 6 Son for amount of bill of June 8. June 14. Sold Phillips Robertson, Cambridge, on account 10 bbl. 3300 ft) white C sugar @ 4U-. June 16. Bought of C, D. Williams Co. 15 bags, 1875 Ib Rio coffee @ 18c. June 18. Cash sales for week $325.40. June 20. Bought office stationery for cash $18.25. June 21. Received from Houghton Son their check on Washington County Bank to balance their account. June 23. Received Phillips & Robertson's note at 30 days in payment of bill of June 14. June 25. Sold Houghton Son on account 5 bbl. 800 Ib laundry 'starch @ 3jc. 40 UP-TO-DATE KEGENTS QUESTIONS (b) Post all the items given in a. (c) Make a trial balance of the ledger called for in b. Make and close the "Loss and Gain" account of the ledger called for in b. Close the "Proprietors account." Inventories are: mer- chandise $12,784.60; furniture and fixtures $1047.50; expense $15. (d) Write (1) the N. Y. draft mentioned in the transaction of June 10, supplying all necessary data, (2) the check mentioned in the transaction of June 21. (e) Write (1) the time draft mentioned in the transaction of June 13, showing acceptance, (2) the note mentioned in the transaction of June 23. (/) Mention three forms of endorsement and illustrate each form as applied to the note of June 23. Show the effect of each of these three forms. (g) Write as Clarence White the letter to accompany draft to T. J. Mather on June 13. (A) Write the journal entry of the draft mentioned in the transaction of Jvine 13, as it would appear in the books of (1) the payee, (b) the drawee. 160 William Barney, dry goods merchant in Rochester, has made a success in business and now wishes to shift some of his cares to younger shoulders. George W. Enright, who was a trusted clerk of Barney's some 10 years ago, is now in Boston receiving a very liberal salary. After an exchange of letters Barney offers Enright a salary of $1000 a year and a one fifth interest in the entire business Enright to invest capital in that proportion. An agreement- is concluded on these condi- tions and Barney invests cash $6000, mdse $9565.60 and furni- ture and fixtures $880, as valued by appraisers. Barney is to take to himself the outstanding accounts receivable or payable. Enright invests $3289.12 in cash. An unlimited partnership BOOKKEEPING 41 is formed on this basis under the name of William Barney & Co. to take effect Dec. 3, 1906. Dec. 3. Bought by check, books of account $50; 10 tons of coal for heating store $60. Sold Smith & Burdick, Utica, 450 yd. black English camel's hair @ $1.87; 500 yd. Am. blk. dress silk $1.25; 250 pc. blk. Chantilly lace 90f*. Terms Y 10 VGO (2% off if paid in 10 ds., net if paid in 60 ds.). Cash sales (transient customers) $245. Dec. 4. Bought of Westcott & Andrews, New York, 100 pc. Dutchesse lace @ $2.25. Terms, 2 / 5 n /30- Sold Jackson Bros., Rome, 150 yd. Barjeon cashmere @ $1.37. Terms, note 10 days. Cash sales $314.50. Dec. 5. Sold Abner Hill, Binghamton, 200 yd. Am. blk. silk @ SI. 25. Terms, YioVeo Sold Williams Bros., Olean, 348 yd. Wamsutta cotton @ 39 . Terms, YioVeo- Cash sales $298.50. Dec. 6. Sold Geo. Peterson, Hornell, on account, 50 yd. fine Eng. serge $1.37. Bought of Wescott & Andrews 120 doz. ladies' kid gloves @ $7.50. Terms 2 / 5 Vso- Cash sales $415.50. Dec. 7. Sent Wescott and Andrews N. Y. draft to pay invoice of Dec. 4. Sold Abner Hill 6 doz. ladies' kid gloves @ $9.50. Terms 2 / 5 VGO- Cash sales $320. Dec. 8. Bought of Gates & Bros. New York, 100 pc. fancy blk. ribbon $2.75. Terms 2 / 5 n / 30 . Sold William Bros. 100 yd. Am. blk. silk $1.25. Terms 2 / 5 Vso- Cash sales $480.20. Dec. 10. Sold B. D. Strong Co., Buffalo, 100 pc. velvet ribbon $2.87. Terms Yio n / 60 . Sent Westcott & Andrews N. Y. draft to pay invoice of Dec. 6. Smith & Burdick send check to pay bill of Dec. 3. Abner Hill sends N. Y. draft to pay bill of Dec. 5. Cash sales $450.80. Dec. 11. Williams Bros, send N. Y. draft in payment of bill of Dec. 5. Sold Mendall & Elder, Saratoga, 100 yd. Venetian 42 UP-TO-DATE REGENTS QUESTIONS crepe cloth @ $1 . Terms, 2 /io n /oo- Send note of Jackson Bros, to Bank of Rome for collection. Cash sales $418.20. Dec. 12. Sent Gates & Bros. N. Y. draft to pay invoice of Dec. 8. Sold Perkins Co., Niagara Falls, 100 yd. blk. Eng. camel's hair @ $1.87. Terms, YioVeo- Cash sales $528.40. Dec. Cash sales $500.50. Dec. 14. George Peterson paid bill of Dec. 6. Cash sales $475.25. Dec. 15. The Bank of Rome returns note of Jackson Bros. with protest; fees and expenses $2.04. Make the proper entries. Paid items of expense as follows: Horses, wagons and drivers $52.50, bookeeper $55, billing clerk $30, porter $20, errand boy $10, printing and advertising $82.10, postage and telegrams $32.50. Cash sales $516.25. (1) Post the books as the conditions require. (2) Make a trial balance and a statement of the businesss or a balance sheet showing gain or loss and present capital of the respective part- ners. Furniture and fixtures unchanged, Inventories: Mdse. $3766.33, Expense $55. 161 James D. Harrison, flour and feed merchants, Yonkers, N. Y., determines to change his books from signel to double entry. He has cash on hand $1567.50, merchandise per inven- tory $1265, furniture and fixtures $530.10, store and lot $4500, notes and drafts due the business $674.50. His outstanding obligations are $945.80 and his ledger shows the following footings Dr. Cr. James Cowan $641.30 $300.50 Howard Booth 495. William L. Warren 252.75 943.10 John O. Porter 50. C. A. Martin & Co. 119.90 363.25 BOOKKEEPING 43 (a) From the information given above, change the books to the double entry system, showing the several steps by which this is accomplished, and prove work by trial balance. (b) Open a cashbook with the cash mentioned in a, and make cashbook and journal entries of the following transactions in form for posting to the double entry ledger: Jan 2, 1907. Paid cash for new set of books and supply of stationery $25.60. Jan. 3. Sold Howard Booth, Tarrytown, on account 50 bu. oats @ 45 c; 100 bu. corn @ 50 c; 5 tons timothy hay @ $15. Jan. 4. Bought of C. A. Martin & Co., Buffalo, 500 bu. oats @ 35^; 500 bu. corn @ 45^5; 50 tons timothy hay @ $12; 20 tons prairie hay @ $8. Terms 5 /io n / 30 (2% off if paid in 10 days, net 30 days). Jan. 5. Sent C. A. Martin & Co. Check on National Com- mercial Bank to balance old account $243.35. Jan. 7. Cash sales of merchandise to date $216.84. Jan. 8. Bought of John O. Porter, New York, on account 25 bbl. XXX fiour $4.50; 10 bbl. graham flour @ $6. Jan. 9. Sent John O. Porter a 10 day draft on Henry Brown, New York, for $200, dated today, to apply on account. Jan. 10. Sold Howard Booth on account 2 tons ground feed @ $20; 2 bbl. flour @ $6; 5 tons prairie hay @ $10. Jan. 11. Bought of Howe & Wayne for cash 50 tons timothy hay @ $12.50. Jan. 12. Howard Booth remits a 30 day note for $525, drawn by William Saunders. Jan. 9, in favor of Booth and indorsed to Harrison. Jan. 14. Sent C. A. Martin & Co. New York draft (National Commercial Bank, George Davis, cashier, on Merchants Bank, 44 UP-TO-DATE REGENTS QUESTIONS New York) in payment of bill of Jan. 4, less discount. Cash sales to date 379.40. Jan. 15. Borrowed $1500 from Foster & Bowen on note at 90 days with interest. Jan. 16. Bought of Smith & Jones on account 100 bbl. winter wheat flour @ $5.25; 150 bbl. patent flour @ $6.10. Jan. 17. Paid carpenter cash for repairs $65.91. (c) Post to the double entry ledger opened in (a) the itmes given in (6). (d) Write (1) the draft mentioned in the transaction of Jan. 9, showing acceptance, (2) the note referred to in transaction of Jan. 12, showing indorsement. (e) Make out the invoice of goods purchased on Jan. 4 and write the New York draft sent in settlement on Jan. 14. (/) Write the journal entry of the draft mentioned in the transaction of Jan. 9 as it would appear in the books of (1) the payee, (2) the drawee. (Mark each entry to show in whose books it belongs.) If Porter had this draft discounted at the bank on Jan. 11 what amount did he receive' 162 (a) Make cashbook and journal entires of the following transactions in form for posting to the double entry ledger: Aug. 31, 1907. Howard W. Loomis and S. R. Williams form a partnership firm under the name of Loomis Williatns, to carry on a wholesale dry goods business in Troy, N. Y., gains and losses to be shared according to investment. Loomis in- vests his stock of goods valued at $7056.40, and furniture and fixtures $443.60. Williams invests cash $5000. Sep. 3. Bought of Bouton Mfg. Co., North Adams, 10 pcs. 512 yd, vS. M. print @ 5p; 5 pcs, 234 yd, Scotch cheviots @ Terms 3 / 10 n /so ( 3 % ff if paid in 10 days, net 30 days). BOOKKEEPING 45 Sep. 4. Sold F. R. Grant, City, 15 gross bone buttons @ 15 e; 10 doz. boys' heavy cotton hose @ SI. 25; 6 doz. men's half hose 86.85. Terms 2 / 10 R / 60 . Sep. 5. Bought office stationery for cash $7.65. vSep. 6. Sold filler Miller on account, 10 gross gilt buttons @, 2.25; 10 pcs. 504 yd, fancy gingham @ ! Sep. 7. Bought of Botiton Mfg. Co. 25 pcs, 1310 yd, fancy gingham @ 7 p. Terms 3 /io Vso- Sep. 9. Paid Preston & Y/alker cash for 25 tons coal @ $6.50 for heating store. Sep. 10. Sold George A. Allen, Mechanicville, on account 10 pcs black chantillylace @ 90c; 20 pcs marquise lace @ 2.20. Sep. 11. Bought of Brooks & Co., New York, 10 pcs, 520 yd, black dress silk (a 81; 100 doz. spools sewing silk @ 8'' Sep. 12. Accepted Brooks Go's draft at 10 days drawn on themselves for $500. Sep. 13 Sent Bouton Mfg. Co. New York draft for amount of invoice of Sep. 3, less discount. Sep. 14. Received F. R. Grant's check for amount of bill of Sep. 4, less discount. Sep. 16. Sold Frank C. Thomas for cash 5 doz. men's kid gloves @ S9. Sep. 17. Bought for cash from New England Furniture Co., a roll-top desk for office, $17.50. (b) Post to the double entry ledger all items given in a. (c) Inventories are merchandise $ 7 764. 50, furniture and fix- tures 454.50 (several chairs were broken), expense $158.22. Close accounts showing loss or gain into Loss and Gain account; close proprietors' accounts showing net gain or loss and present worth of each partner. 46 UP-TO-DATE KEGENTS QUESTIONS (d) (1) Write the draft mentioned in transaction of Sept. 12, showing acceptance. (2) Write the New York draft men- tioned in transaction of Sept. 13 and show proper indorsement (National Commercial Bank, John Smith, Cashier, on Producers Bank of New York). BY EXAMINATIONS January 22, 1919 163 Make, with sufficient explanations, the proper entries for the following selected transactions, using at least a double entry journal and a cashbook as books of original entry: On Dec. 1, 1918., the cashbook of Fuller (J. E.) & Stowe (R. P.), a partnership engaged in a general merchandising business in New Rochelle, N. Y., shows a balance of $2635.80 of which $2410.50 is on deposit in the Westchester Trust Co. Enter the cash balance in the cashbook. Dec. 2 Paid semi-annual interest due Westchester Trust Co. on a mortgage of 3000 at 5% interest. Dec. 4 Bought of Warren Bros., New York, terms 3 /io> mer - chandise amounting to $691.50. Paid freight on merchandise purchased $10.45. Dec. 5 Sold Mrs. M. A. Carter, City, terms on account, a bill of goods amounting to $79.40. Dec. 9 Received from Lawrence Taylor, Mount Vernon, N. Y., his 30 day note, dated Dec. 7, for $375 and check for $78.32 in payment of bill of Nov. 9; amount of bill $457.90, less 1%. Dec. 10 Paid electric light bill $15.30, miscellaneous expenses $26.35. Dec. 11 Discounted at Westchester Trust Co. Taylor's note of Dec. 7 and received credit for the proceeds. Dec. 11 Paid C. A. Young Co., New York, $250 to apply on account. Dec. 14 Gave Warren Bros, our 10 day interest-bearing note for invoice of Dec. 4, less the discount. (47) 48 UP-TO-DATE EEGEISTS QUESTIONS Dec. 1-6 Sold Arthur Dwyer, City, terms on account, a bill of goods amounting to $163.78. Dec. 1.7 Received Henry Wheeler's 10 day acceptance, dated Dec. 16, for 125.60 balance of account due Dec. 1. Draft was drawn Dec. 10. Dec. 20 Bought of Yonkers Trading Co., terms on account, merchandis amounting to 8561.20. Dec. 24 Received notice from Yonkers Trading Co. that our claim for 838.75 for damaged goods returned has been allowed. Dec. 24 Paid by check our note in favor of Warren Bros, due today. Dec. 27 Received Wheeler's check in payment of acceptance of Dec. 16. Dec. 28 Fuller, one of the partners, withdrew SI 50 for pri- vate use. Dec. 31 Paid office and store salaries 140. Balance the cashbook and bring down the balance. 164 On Dec. 31, 1918, the ledger accounts of James L. Collins, a local merchant, show the following information concerning his business for the year just ended: Goods on hand Jan. 1, 818,607.50; goods purchased during the year $59,329.40; goods sold during the year $79,547.10; freight paid on goods purchased during the year 1389.35; dis- counts allowed in the settlement for goods purchased 838.64; expenses $5650; interest paid on notes issued to creditors 168.73. The goods on hand De. 31 are valued at $15,862; depreciation on store fixtures is estimated at 10% of book value af $3000. From the above information, prepare for Mr. Collins a profit and loss statement for the year under consideration. 165 With a balance of $863.78 due on Nov. 1, 1918, (a) open an account with Henry L. Davis, one of your customers, (b) BOOKKEEPING 4 ( .) make the required entries in the account for the following tran- sactions, (c) show the balance of the account as of Dec. 31: Nov. 2 Sold him goods on account 8281.90. Nov. 10 Received his 30 day note for 8300 to apply on bal- ance due Xov. 1 . Xov. 13 Sold him goods on terms 2 /io /30, 8196.75. Xov. 17 Allowed his claim for 828.50 for damaged goods con- tained in shipment of Xov. 13. Xov. 23 Received his check for the amount due on bill of Xov. 13. Xov. 25 Received his check for the part of the balance due Xov. 1 still remaining unpaid. Dec. 5 Sold him goods amounting to 8483.25 and received his 60 day note for 8250, balance on account. Freight amount- ing to 815.61 was charged to his account. Dec. 12 Received his check for one half the balance due Dec. 1. Dec. 24 Received his check for balance due on bill of Dec. 5. 166 Referring to question 163, write (a) the note required in transaction of Dec. 9, (b) the draft required in transaction of Dec. 17. 167 (a) Why are entries journalized and not made in the ledger direct? (b) Why are cash entries kept in a separate book? 168 Explain each of the following: note receivable, balance sheet, invoice, ledger, capital. DATE Caylord Bros Makers Syracuse, N. Y. PAT. JAM. 21. 190* VC 245 j 415787