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BOOKli EEPING   13

23. Sold M. Peters for cash, Mdse. $80.25.

26. M. Peters paid on account, cash $100.

  1. Bought from M. Peters on account, Mdse. $175.

  2. Bought from M. Peters for cash, Mdse. $200.

17 (a) The Proprietor's Account.

This account is treated in the same way as any other personal account, until the close of the business period. The proprietor is made debtor for what he receives from his business on account (called withdrawals for private use), and is made creditor for what he gives to his business on account (called investments).

The only difference between the proprietor's account and that of an outside person is, that the net gain at the close of the business term is placed on the creditor side of his account ; or if there be a net loss, it is placed on the debtor side of his account. There will then be a debtor balance or a creditor balance just as in any other personal account; if the creditor side be the greater we name the balance " Net Capital," or if the debtor side be the greater, we name the balance " Net Insolvency."

The Proprietor may have two accounts—Capital A/c and Private A/c. For the present we shall use the first one only, as follows : " Proprietor (Capital A/c)."

The Pupil will think of himself as the bookkeeper when another person is mentioned as Proprietor.

Exercise No. 8.

Journalize ; post, enter the net gain, balance, and close the Proprietor's Account. Compare your Ledger account with the example in Section 17 (b).

London, May 1, 19—. The Proprietor gave to the business on account (invested), cash $1000.

6. The Proprietor received from the business on account (withdrew), cash $10.75.

10. The Proprietor gave to the business on account (invested), Mdse. $1500.25.

cash $30.

27. 30.

Dx.   (he received or withdrew)   PROPRIETOR (Capital A/c).   (he gave or invested)   Cx.

19—

 

 

 

 

 

19

 

 

 

 

 

May

6

 

13

10

75

May

1

 

13

1000

 

 

15

 

13

30

 

 

10

 

13

1500

25

 

27

 

13

20

50

 

30

 

13

500

 

 

*31

*let Capital   -   -

*13

*3014

50

 

31

Net Gain   -   -   -

13

75

50

 

 

 

 

3075

75

 

 

 

 

3075

75

 

_

*Red Ink

 

 

 

June

1

Net Capital   -

13

3014

50

Exercise No. 4.

Journalize ; post, enter the net gain, balance, and close the Proprietor's account—"G. Grand, Capital A/c." Is he a debtor or a creditor of the business 4 Is the balance an asset or a liability of the business 7 What is the balance as regards himself 7

15. The Proprietor withdrew from the business on account,

The Proprietor took for private use, Mdse. $20.50. The Proprietor invested in the business, cash $500. Net Gain on May 31, $75.50.

17 (h). Ledger—Proprietor's Account.


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