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14   BOOKKEEPING'

St. Thomas, June 1, 19—. G. Grand invested, Mdse. $2000.

6. G. Gland withdrew from the business, cash $50. 10. G. Grand invested in the business, cash $1500. 18. G. Grand took for private use, Mdse. $60.50. 24. G. Grand inve.,!ed in the business, cash $500. 29. G. Grand withdrew from the business, cash $30.

Net gain on June 29, $120.60.

18. The terms Debtor and Creditor have their true meaning, only in the first class of accounts—Personal Asset and Liability accounts. The person whose name is at the head of the account is a debtor —he owes to our business the amounts on the debtor side of his account; and be is a creditor—be is owed by our business the amounts on the creditor side.

In the second and third classes of accounts mentioned in Section 10 (d), the terms Debtor and Creditor do not have this ordinary meaning. In the second class—Impersonal Asset and Liability accounts—the debtor side shows the amounts of Cash, Bills Receivable, Bills Payable, etc., received by our business ; and the creditor side shows the amounts of Cash, Bills Receivable, Bills Payable, etc., given by our business. In the third class—Loss and Gain accounts—the debtor side shows the cost to our business of Merchandise, Expense, Real Estate, Interest, Discount, Commission, etc.; and the creditor side shows the proceeds for our business of Merchandise, Expense, etc.

IMPERSONAL ASSET AND LIABILITY ACCOUNTS.

19. Instructions to the Pupil :

  1. We shall now deal with the second class of accounts—Impersonal Asset and Liability accounts —Cash, Bills Receivable, Bills Payable, etc.

  2. Keep your mind fixed on the account under consideration, and think whether the business: received, or gave, the item mentioned.

  3. When any of the accounts of Class II. or Class III. in 10 (d) are mentioned in a transaction, you must make an entry for such, whether the transaction be on account or not. For an account of Class I. there is an entry for the person, only when the transaction is on account.

20. Journalizing—Rule II.

Make Impersonal Asset and Liability Accounts debtor for the amounts which the business receives, and creditor for the amounts which the business gives.

21. Cash Account.

Make this account debtor for all cash which the business receives, and creditor tor all cash which the business gives.

The term Cash includes gold, silver, and copper coin, bank and government notes (bills), cheques, bank drafts, sight drafts, post office money orders, postal notes, express money orders, and all other demand orders for money.

EXERCISES ON CASH ACCOUNT. Exercise No. 5.

Journalize; post, balance, and close Cash Account, leaving room in both .luurnal and Ledger to continue with Ex. No. 6.

Winnipeg, July 2, 19—. Received cash from the Proprietor as an investment, $300. 4. Gave cash for Mdse , $50.

11. Paid cash for Mdse., $200.25

18. Received cash for Mdse., $100.

30. Paid cash to T. Dunn on account, $60.


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