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BOOKKEEPING   95

138. Closing the Ledger—Single Entry—Illustration Set.

This consists in closing the Proprietor's A/c only. The other Personal A/cs are closed, only

when settled or when carried forward to a new page.

1. Determine the Net Gain from the Financial Statement.

2. Enter the Net Gain on the Cr. side of the Proprietor's A/c.

3. Close the Proprietor's A/c and bring down the Net Capital, as follows :

Da.   W. J. SYKES (Capital A/c).   CR.

19

 

 

 

19

 

 

 

 

Nov. 130 I *Net Capital

95

*3833

48

Nov.

1

90

3701

18

1   1

 

 

 

 

30 Net Gain

 

132

30

 

 

383.3

48

 

 

 

38.>-.s

48

 

 

 

 

Dec.   1 Net Capital

95 1

3833

48

139. Changing from Single Entry to Double Entry.

A Single Entry Ledger contains only Personal A/cs ; a Double Entry Ledger contains both Personal A/cs and Impersonal A/cs. To change from Single Entry to Double Entry, it is necessary, therefore, to open Impersonal A/cs in the Ledger, in addition to the Personal A/cs already there.

  1. Make a Single Entry Financial Statement and close the Proprietor's A/c.

  2. Make a journal entry from the Single Entry Asset and Liability Statement : 1st Method—make a journal entry containing only the Impersonal A/cs. 2nd Method—make a journal entry containing both the Personal A/cs and the Impersonal Acs ; check the Personal A/cs and post only the Impersonal A/cs.

  3. Post this opening journal entry and take a trial balance. From the 2nd Method, it will be seen that all the Single Entry Ledger lacks of being in balance, is the Impersonal A/cs.

  4. Proceed by Double Entry, in the same way as you would after making the opening journal entry from the Assets and Liabilities in a Double Entry Set. Bring down the balance in the Cash Book, and continue the Bill Book.

140. Journal Entry to Change from S. E. to D. E.—Illustration Set. ST. CATIIARINES, December 2, 19—.

 

 

W. J. Sykes has this day changed his books from Single Entry to

Double Entry, and continues the Grocery Business at # 173 St. Paul St.

1st Method

 

 

 

 

 

 

94

Cash Dr.

2856'

23

 

 

 

94

Bills Rec.   -

50

 

 

 

 

94

Mdse.   -

1320

50

 

 

 

94

Bills Pay.   -

 

 

200

 

 

N/

Impersonal A/cs as per Single Entry Statement.

2nd Method

22

10

 

 

S. Porter, Dr.

 

 

R. Green   -   -

4

65

 

 

 

94

Cash   -

2856

23

 

 

 

94

Bills Rec.   -

50

 

 

 

 

94

Mdse.   -   -

1320

50

 

 

 

94

Bills Pay.

 

 

200

 

 

 

H. Dowd

 

 

220

 

 

 

W. J. Sykes (Capital A/c)

 

 

3833

48

 

 

For Assets and Liabilities as per Single Entry Statement.

 

 

 

 


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