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BOOKKEEPING   47

70 (a). Bank Account.

An account may be kept with the bank : (1) As a personal account in the Ledger only ; (2) On the stub ends of the Cheque Book only; (3) In the Bank Pass Book only; (4) In special columns in the Cash Book only; (5) By combinations or modifications of the first four methods.

Make the Bank debtor for the deposits it receives from us, and creditor for the amounts it gives in paying the cheques we draw on it. Other persons' cheques on the various banks have nothing to do with our Bank Account ; we call them cash when we receive them, because we may either cash them at any bank, or deposit them with our other cash.

(b) Bank Account—Transactions Journalized.

1800

 

200 250

Hamilton, February 2, 19-. Deposited in the Scholastic Bank 40 ones, 30 twos, 100 fives, 20 tens, 10 fifties, 4 one hundreds, coin 820.50, cheques *40.15 and 839.35.

Feb. 5.-Bought from S. Pearson for cheque, Mdse. *200.

 

Feb. 7.-Sold J. Darwin for cheque, Mdse, 8250.

Scholastic Bank Dr.
   Cash Cr. -   -

 

 

Mdse. Dr.   -   - Scholastic Bank Cr.

Cash Dr.   -
Mdse. Cr. -

1800

200 250

Set IV.—D. E.—Flour and Feed Business.

Special Features.—The introduction of Bank Account as a personal account in the Ledger. The use of deposit slips and cheques.

Instructions :

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

(b) Business Papers :

  1. Inward.—Votes on Feb. 8, 13, 20, 23 ,( Cheques on Feb. 7, 14, 16, 26 drawn on any bank) Receipts on Feb. 24, 27.

  2. Outward. —Totes on Feb. 1, 6, 15, 21, 24 ; Deposit Slip on Feb. 2 ; Cheques on Feb. 5, 10, 22, 24, 27 ; Receipts on Feb. 8, 23.

(c) Make out business papers, journalize and write up the Cash Book ; post ; take a Trial Balance; take stock; make a Loss and Gain Statement, a Summary of the Proprietor's A/c and an Asset and Liability Statement ; close the Ledger in the same way as in Sets I. and II.

Directory:

Calder, D., Grimsby, Ont.   Knight, A., St. Catharines, Ont.

Davis, J., Oakville, Ont.   Taylor & Sons, Toronto, Out.

Darwin, J., Dundas, Ont.   All Others, Hamilton, Out. Kilgour Bros., Toronto, Ont.

Ledger Lines (" H" stands for Heading, 3 lines) :

'A. Weir's Cap. A/c.... H + 4

Cash    H + 9

Merchandise    H + 9

''Scholastic Bank   H + 8

Expense    H + 7

Bills Payable    H + 6

3J. Davis   H+ 6

A. Knight    H + 4

Bills Receivable    H + 5

Loss and Gain    H + 8

Transactions—Set IV.

Hamilton, February 1, 19—. A. Weir commences the Flour and Feed Business at 237 King St. Assets : Cash, $2000 ; Mdse. as per Inventory, $3000.

J. Davis owes on account, $130.


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