Previous Ontario School Bookkeeping (1909) Next

 

BOOKKEEPIIVU   19

The expression " to K. Spiers cr order " has the same meaning as "to the order of K. Spiers," and either may be used. The word order requires K. Spiers to endorse the paper, that is, write his name across the back, when he receives payment. (See Sections 79 and 80.)

Instead of giving the foregoing note, the Proprietor might have given the following acceptance, in which the business agrees to pay the amount asked for by K. Spiers.

28. Bills Payable Account.

Make this account debtor for all of our own notes and acceptances received (back) by our business, and creditor for all of our own notes and acceptances given by our business.

We give them on account or for something we buy ; and we receive them back when they are paid or otherwise redeemed.

The first entry in this account is made on the creditor side, and the difference (if any) between the two sides must always be a creditor balance, and therefore a liability. This balance is the amount of our own notes and acceptances outstanding.   .

EXERCISES ON BILLS PAYABLE ACCOUNT

Exercise No. 13.

Make a copy of the foregoing note and acceptance. Journalize ; post Bills Payable Account, leaving room to continue with Ex. No. 14. What amount of our notes was given out (issued)? What amount was received back (redeemed) ? What amount is still outstanding or unpaid ? Is this balance an asset or a liability ?

Woodstock, March 1, 19-. Gave our note for $100 to K. Spiers, Hamilton, on account. 4. Gave our note for $200 to J. Robb for Mdse.

8. Bought Mdse. $150 and gave our note in payment.

18. Received (back) our note of Mar. 4, $200 ; we paid it in cash. 20. Gave our note for $175 to B. Smith on account.

23. Paid our note of Mar. 8 in cash, $150. (Received it back.) 27. Bought Mdse. $225.50 on our note.

30. Paid our note of Mar. 20 in cash, $175.

One C.*~   _00 o&ars

100

ceYued, and c 4arye to the account of

,J'100. oo.

One mo'itd   --_,___,,,.after date, pay

to w_   or order

i im.' 22n. ci a1ec L /, t)-

g -O

Picture
Picture
Picture
Picture

Previous Ontario School Bookkeeping (1909) Next