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BOOKKEEPING   69

 

(b) Exercise on the Cash Journal.

Make Cash Journal entries for the following, balance, foot, rule, and bring the balance down. Stratford, July 2, 19-. Pupil invested $3000.

  1. Deposited in the Scholastic Bank, cash $2700.

  2. Bought from D. Sparrow fox cash, Mdse. $250, as per Inv. dated June 29.

  3. Sold M. Dinnick Mdse. $550 ; received in part payment, cash $175, balance on a/c.

  4. Paid for Stamps and Stationery, cash $4.50.

  5. Discounted W. Parker's note ; face $200, discount $5.30 ; proceeds received in cash.

  6. Received from J. Campbell in full of a/c, cash $110.60.

  7. Prepaid our note with cash ; face $160.50, discount $4.10.

  8. Paid M. Robertson on a/c, cash $87.30.

  9. S. Gilmour paid his note due to-day, with cheque $165.75.

  10. Putting Discounts Through the Cash Journal.

The transaction on June 27 may be put through the Cash Journal instead of the Journal. On the Dr. side, enter the total amount for Bills Rec. ($26.60) as though it were all received ; and on the Cr. side, enter the Discount (35c.) as though it were so much cash given back.

  1. Purchases and Sales for Cash or Note.

It is usual in actual business to put a transaction through the Personal Account when paid with cash, note, or acceptance, at the time of purchase or sale. The transaction on June 25 would be entered first in the Journal,—J. Munro Dr. $25 and Groceries Cr. $25 ; and then in the Cash Journal,—Cash Dr. $25 and J. Munro Cr. $25. The purpose of this is to have a record of all large transactions with regular customers, in case an order is to be duplicated, or some other information is desired. Of course, petty cash sales are not put through the Personal Accounts.

  1. Department Accounts.

Some stores, called departmental stores, keep many lines of goods, and separate their stock into several departments, such as Dry Goods Department, Boots and Shoes Department, Groceries Department, etc. For each of these departments they have a corresponding account—Dry Goods A/c, etc. ; each account is treated in the same way as Merchandise A/c. When Expense A/c is separated into various accounts, such as Rent, Furniture, etc., each is treated in the same way as Expense A/c.

CR.

Items.

7'otuls.

L. F. Accounts I)r.

CASH. Explanations.

19

 

 

 

 

 

 

 

 

 

June

3

8

Scholastic Bank   -

Deposit -

 

2700

 

 

 

 

6   '

J

E. Denton & Co.   -

On account    

-

75

 

 

 

 

6

5

Dry Goods   -   -

Freight    

-

12

 

 

 

 

8   ;

J

Pupil   -   -   -

Withdrew    

-

30

 

 

 

 

12

5

Boots and Shoes   -

Freight    

-

10

 

 

 

 

12   '

7

L Martin   -   -

On account    

-

10

 

 

 

 

22

8

Scholastic Bank   -   :

Deposited    

-

1400

 

 

 

 

27

7

Discount -   -

On B. R. 2

 

 

35

 

 

 

29

J

Expense -   -   -

Clerk's salary    

-

40

 

 

 

 

29

8

Scholastic Bank   -   `:

Deposit    

-

600

 

 

 

 

29

8

-

Cash    

Cr.

 

 

4877

35

 

*2y

 

-

*Balance    

-

 

~

*67

25

 

 

 

 

 

 

 

 

4944

60

 

 

 

 

 

 

 

 

 

 


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