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BOOKKEEPING   17

 

The Proprietor writes the draft and addresses it to K. Spiers, asking him to pay the amount specified ; K. Spiers agrees to do so, by writing "accepted" and his name across the face of the draft. It is better also to write the date of acceptance and a place of payment, across the face of the draft. This writing across the face may be done in either red ink or black ink.

  1. Bills Receivable Account.

Make this account debtor for other persons' notes and acceptances received by our business, and creditor for other persons' notes and acceptances given by our business.

We receive them on account or for something we sell ; and we give them back, when they are paid, or otherwise disposed of.

The first entry in this account is made on the debtor side, and the difference (if any) between the two sides must always be a debtor balance, and therefore an asset. This balance is the amount of other persons' notes and acceptances on hand.

EXERCISES ON BILLS RECEIVABLE ACCOUNT. Exercise No. 9.

Journalize; post Bills Receivable Account, leaving room to continue with Ex. No. 10. What amount of other persons' notes was received ? What amount was given back ? What balance is still on hand ? Is this balance an asset or a liability ?

Stratford, November 1, 19-. Received K. Spiers' note $200.60 on account. 6. Received S. Parks' note $300, for Mdse. sold to him. 14. Gave back K. Spiers' note 8200.60; he paid it in cash. 26. Received B. Clark's note $400, on account.

30. Gave back S. Parks' note $300 ; he paid it in cash.

  1. Ledger for Bills Receivable Account.

nR.   (we received)   BILLS RECEIVABLE.   (roe gave back)   C.R.

19—

 

I   '

 

 

 

19

 

 

 

 

 

Nov.

1

 

17

200

60

Nov.

14

 

17

200

60

 

6

 

17

300

 

 

30

 

17

300

 

 

26

 

17

400

 

 

 

   '~

 

500

s0

 

 

 

 

900

50

 

 

-   -

 

 

 

 

 

 

 

 

 

 

 

_

 

 

Exercise No. 10.

Journalize: post, balance, and close Bills Receivable Account, making it a continuation of the account in Ex. No. 9. Close in the same manner as illustrated in Sec. 16 (b). What is the balance called ?

Stratford, December 2, 19-. Received from N. Shore on account his note for $250.50. 10. Sold K. Spiers on his acceptance, Mdse. $275.

15. N. Shore paid his note of Dec. 2 in cash, $250.50. (Gave it back to him.) 21. Sold S. Parks on his note, Mdse. $150.

24. B. Clark paid his note of Nov. 26 in cash, $400.

28. Received from D. Hart on account, his acceptance for $100.

31. K. Spiers paid his acceptance of Dec. 10 in cash, $275.


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