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26   BOOKKEEPING

 

on hand or invested, are debtor, because they have been received ; Bills Pay., etc., are creditor, because they have been given; (c) Mdse., etc., on hand or invested, are debtor, because they are a cost to the business, or have been received (as a cost).

In short, when opening the books, make the Assets debtor, and the Proprietor creditor for the amount of his Assets, and make the Proprietor debtor for the amount of his Liabilities, and the Liabilities themselves creditor ; or, make the Assets debtor, the Liabilities creditor, and the Proprietor creditor for the difference between his Assets and Liabilities (See Section No. 59).

 

37. Unity of Ledger Accounts.

The following Exercises and Sets will show more closely the connection and unity of Ledger Accounts. The Loss and Gain Account may be introduced with Exercise No. 23, or it may be delayed until the Illustration Set, on page 29, is reached.

Exercise No. 23.

Journalize, post to the Ledger, find the gain in Merchandise Account, enter the gain in the Capital Account, and close these accounts and Cash Account.

Regina, October 1, 19—,. K. Mapp commences business, investing cash $500, and Mdse. $2,500.

  1. Sold N. Gerry for cash, Mdse. $100.

  2. Bought from H. Moore on account, Mdse. $250.

7. Sold N. Gerry on account, Mdse. $160. 9. Sold H. Moore for cash, Mdse. $75. 15. Paid H. Moore on account, cash $125.

18. Bought from N. Gerry on account, Mdse. $50. 25. N. Gerry paid on account, cash $70. 30. Bought from H. Moore for cash, Mdse. $180.

Inventory taken Oct. 31.

Mdse on hand    $2850. Results :—Net Gain. $205 ; Net Capital, $3205. Exercise No. 24.

Journalize, post to the Ledger, find the gain in Merchandise Account, the loss in Expense Account, enter the difference in the Capital Account, close these accounts and Cash Account.

Quebec, November 1, 19—. D. Christie commenced business, investing Cash $1200, Mdse. $1350, and a Note for $150.

2. Bought on our note, Mdse. $200.

6. Sold for cash, Mdse. $150.

8. Received cash for note of Nov. 1, $150.

11. Sold for note at 10 days, Mdse. $50.

14. Bought for cash, Mdse. $350.

17. Paid our note of Nov. 2 in cash, $200.

20. Paid cash for Office Furniture, $35.


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