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44   BOOKKEEPING 6'7. Purposes of the Cash Book.

  1. As an auxiliary book, besides being a record of receipts and payments, it serves as a check on the cash drawer ; the balances of the Cash Book and the cash drawer should always agree ; and if they do not, a mistake has been made or the drawer has been tampered with. In actual business, this comparison of balances is made daily or weekly, and the Cash Book footed and ruled at the same time or at longer intervals.

  2. As a principal book, it serves as a posting medium, thus lessening the work of the Journal Day Book. It may also serve as a ledger account.



Set III.—D. E.—Grocery Business.

Special Features.—Continuation of Set II., and the introduction of the Cash Book as an auxiliary book.

instructions :

(a) Books to be used—Business Papers, Journal Day Book, Cash Book and Ledger.

(b) Business Papers :

  1. Inward.—Notes on Feb. 5, 20, and 23 ; Receipts on Feb. 6, 14, and 28.

  2. Outward.—Notes on Feb. 12 and 16 ; Receipts on Feb. 13 and 20.

(c) Make out business papers and journalize; write up the Cash Book, making each entry just after the transaction is journalized; post under the ledger headings of Set II. ; take a Trial Balance ; make Statement of Losses and Gains, Summary of Proprietor's A/c and Statement of Assets and Liabilities (Sec. 51); close the Ledger as in Set II.

Transactions—Set III.

Toronto, February 1, 19—. R. J. Potter continues the Grocery Business at 150 Yonge St. 2. Bought from M. Street f)r cash, Mdse. as per Inv. 3, $300.

3. Sold L. Dow for cash, 1000# Sugar   4c. ; 70# Tea © 30c.

  1. Sold P. Moore on his note at 10 days, 1500 # Cheese c© 10c.

  2. Paid R. Smith for painting store, cash $25.

  3. Bought from M. Street on a/c, Mdse. as per Inv. 4, $200.

  4. Sold L. Dow on a/c, 100# Coffee @ 25c.

  5. Engaged J. Sims as clerk at $30 per month.

  6. Bought from Rogers & Sons for cash, Chairs $6, Showcase $40, for store.

  7. Bought from M. Street on our note at 10 days, Mdse. as per Inv. 5, $150.

  8. L. Dow paid cash on a/c, $10.

  9. Paid M. Street on a/c, cash $50.

  10. Sold L. Dow on a/c, 20 bbls. Flour @ $4.

  11. Sent M. Street on a/c, our note at 15 days, $100.

  12. P. Moore paid his note of the 5th inst. in cash.

Bought from P. Marsh for cash, 1 ton Coal $6, for store.

  1. Received from L. Dow on a/c, his note at 30 days, $50.

  2. Sold P. Moore on a/c, 10 sacks Oatmeal, 100# each, @ 2ic.

  3. Paid for Postage and Stationery, $2.

  4. L. Dow gave us his note at 60 days to close his a/c.

  5. Paid our note of the 12th in cash.

  6. Sold M. Street on a/c, Chairs and Showcase (bought on 10th), $43.

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