Previous Ontario School Bookkeeping (1909) Next

 

10   B00KKEEPIXG

  1. Always distinguish between the business and the proprietor of the business. For the purposes of bookkeeping, consider that it is the business that buys and sells, and otherwise transacts business. The proprietor himself gives to his business on account when he invests, and is credited for the amount he so gives; he receives from his business on account when he with-draws for private use, and is debited for the amount he so receives.

  2. Steps in making a Journal Entry : (a) Determine which accounts are affected by the trans-action ; make no entry for the personal account unless the transaction is on account, but you must make an entry for the impersonal accounts, whenever Cash, Merchandise, etc., are mentioned, no matter whether the transaction is on account or not. (b) Select the debits first and then the credits.

  3. Journalizing—Rule I.

In Personal Asset and Liability Accounts, make the person debtor for the amounts which he receives from our business on account, and make him creditor for the amounts which he gives to our business on account.

  1. Business Transactions for John Simpson's Account.

Journalize the following transactions, and post the items for John Simpson's account, using the illustrations in Section 16 (a), (b) as guides. Leave room enough in both Journal and Ledger to continue with the February transactions of Section 15. This may be worked out in full or taken as an oral exercise.

Toronto, January 2, 19-. Sold John Simpson on account, goods $80. 5. Bought from John Simpson on account, goods $75. 10. Sold John Simpson on account, goods $110.50.

  1.  John Simpson paid on account, cash $40.25. 17. Sold John Simpson on account, goods $70.50. 22. John Simpson gave on account, goods $90.

  2. Sold John Simpson on account, goods $25.

  3. Bought from John Simpson on account, goods $45.

  4. John Simpson paid on account, cash $10.75.

  5. Sold John Simpson for cash, goods $20.

15. Business Transactions—John Simpson's Account—Continued.

Journalize the following transactions ; continue the posting under the January posting, balance and close the account as shown in Section 16 (b).

Toronto, February 1, 19-. Sold John Simpson

6.

14. 20. 26. 28.

on

Received from John Simpson on account, cash $100. Bought from John Simpson on account, goods $175. Paid John Simpson on account, cash $25.

Sold John Simpson on account, goods $80.25. John Simpson paid on account, cash $30.50.

account, goods $200.


Previous Ontario School Bookkeeping (1909) Next