BOOKKEEPING . 15
Closing Cash Account.
The Debtor side can never be less than the Creditor side. Why ? Take the difference between ' the two sides ; this will give the balance of cash on hand. Place the balance on the smaller side in red ink, rule and foot the columns, and bring down the balance on the opposite side in black ink, This debtor balance is an asset.
Exercise No. 6.
Journalize; post, balance, and close Cash Account, making it a continuation of Cash Account in Ex. No. 5. Why is the balance always an asset ? This may be done as an oral exercise.
Winnipeg, August 1, 19.- Received from P. Mark on account, cash $70. 8. Proprietor withdrew for private use, cash $20. 14. Sold M. Spence on account, Mdse. $100.
20. Bought from T. Dunn for cash, Mdse. $80.50.
Sold R. Gray for cash, Mdse. $150.70.
28. Paid cash for Mdse., $30.
30. Gave cash to T. Dunn on account, $10.
Ledger for Cash Account—closed twice.