6. Receive $10 from Chas. F. Lewis, on account.

Cash sales, $49.75.

8. Give Henry T. Mills a note at 30 days from Oct. 4, in full of account.

9. Sell Chas. F. Lewis on account, 500 lb. hay @ $17.50 a ton, 1000 lb. straw @ $8.75 a ton, and 5 lb. butter @31. Buy of Chas. F. Lewis on account, 25 bbl. apples @ $1.25. 10. Cash sales, $73.25.

Close your cash book. See the illustration on page 195.

11. Buy of F. D. Moore on account, 25 tons hay @ $14.50, and 25 tons straw @ $6.75.

12. Sell James Ford on account, 5 bu. potatoes @ 75¢, 2 bbl. flour @$5.25, bbl. apples @ $1.75, and 5 lb. butter @ 31. 13. Sell Geo. G. Doolittle on his note at 30 days with interest, 12 tons hay @ $17.25, and 8 tons straw @ $8.25.

The entries in the sales book and bill book are all that are necessary for this transaction. As the entry in the sales book is not to be posted, it should be checked.

Cash sales, $98.72.

15. Pay Henry Wilson's bill of the 1st inst. for office furniture,

$78.25.

16. Receive cash from James Ford for the sale of the 5th inst.

Cash sales, $124.97.

17. Pay for postage, $1.50.

18. Pay F. D. Moore cash for one-half of his account and give him a note at 60 days with interest for the balance.

19. Sell Howard J. Parks on account, 5 bbl. flour @ $5.35, and 10 bbl. apples @ $1.95.

Cash sales, $167.76.

20. Buy of Henry S. Brown on account at 30 days, 150 bbl. apples @ $1.35, and 100 bu. potatoes @ 521¢.

Close your cash book, as you did on the 10th inst.

22. Buy of Robert McKenzie for cash a delivery horse and wagon, $250.

23. Receive cash from Jas. C. Holmes in full of account.

Cash sales, $194.75.

24. Sell Wm. O. Parker on his note at 30 days with interest, 25 bbl. apples @ $1.95, and 25 bu. potatoes @ 69¢.

25. Pay Geo. P. Lane's bill for cartage, $16.75.

26. Sell T. W. Smith on account, 1 bbl. flour @ $5.40, 2 bu. potatoes @ 73, 5 lb. butter @32, and bbl. apples @ $2.

27. Prepay your note in favor of Henry T. Mills, less the discount to maturity.

Cash sales, $201.86.

29. Buy of Henry T. Mills on account at 10 days, 12 tons hay @ $14.50.

30. Sell A. C. Newman on his note at 60 days, 5 tons hay @ $18.25, and 1000 lb. straw @ $9.25 a ton.

Discount this note at the First National Bank and receive

cash for the proceeds.

31. You will withdraw for private use, 1 bbl. apples @ $1.35, 1 bu. potatoes @ 53, and 1 bbl. flour @ $4.50.

225. Directions. - Close your cash book and hand your blank books to your teacher for his approval. After your work has been approved, you may post and check your postings. Do not rule and foot. your journal until you are instructed to do so. You will post from your journal, cash book, and sales book, but remember that only personal accounts are to be kept. Your individual account will of course be the first one in your ledger. Give each account one-fourth

of a page.

Prepare a statement of resources and liabilities. Your ledger will show the balances due on personal accounts, and your bill book will show the notes on hand and outstanding. You have the following property on hand:

Store and lot valued at $ 3000,

Horse and wagon at cost,

Office furniture at cost, less 5 % for depreciation,

Merchandise per inventory, $678.98.

Having found your present worth, you can find your net loss or gain by finding the difference between your present worth and your net investment. Make an entry in your journal, like the following illustration, crediting your account with your net gain, or debiting it with your net loss, and post this entry to your account. Close your account so that it may show your new present worth. Rule and foot your journal and sales book.

Geo. H. King,

Net loss for month

226. Changing from Single to Double Entry. At any time after a double entry ledger has been closed, the accounts will show only the resources and liabilities of the business and the present worth of the

proprietor. In order to change your books from single to double entry, it is necessary to make such entries in your ledger as will cause it to exhibit each of the resources and liabilities shown by your state

ment.

227. Directions. - The personal accounts are already shown by your ledger, and the cash balance is shown by your cash book. You may open an account with Merchandise, and enter the amount of the inventory on the debit side in black ink under date of Nov. 1. In the same manner you may open accounts with Real Estate, Horse and Wagon, and Office Furniture. You may open an account with Bills Receivable and debit it with the amount of bills receivable on hand, as shown by your bill book, and open an account with Bills Payable and credit it with the amount of your bills payable outstanding, as shown by your bill book.

After these accounts have been opened, take a trial balance of your ledger, including your cash balance as shown by your cash book. If you have made no mistakes in opening these additional accounts, your ledger should now balance, and your books are in shape to continue by the double entry method.

NOTE. In changing from single to double entry some bookkeepers prefer to make the necessary entries in the journal, and post from this to the ledger. When this method is followed, there should be an entry in the journal similar to the illustration on page 212. The items already shown in the ledger would be checked, and the other items would be posted in the usual manner.

If pupils need additional drill in single entry, some of the exercises in the introductory part of the book may be used for this purpose. It is sometimes well to have a pupil work a short exercise by both single and double entry, for he then learns that the results are the same by either method.

Questions.

1. Why is single entry bookkeeping so called?

2. What are the principal differences between single and double entry bookkeeping?

3. Do you see any reasons for preferring the single entry method?

4. What reasons do you see for preferring the double entry method?

5. Can you suggest any business in your city where you think the single entry method would be satisfactory?

6. What entries must be made in order to change your books from single to double entry?

7. Where do you obtain the necessary data to use in making these changes?

EXERCISE XVI.

SUPPLEMENTARY DRILLS.

228. The purpose of this exercise is to afford practice in the application of the principles which you have already studied. Incidentally you will be given a number of problems which are more or less difficult, and which will require careful study on your part. Do not pass any of these problems until you understand them fully. You should be prepared to write out any business paper that may be required for any of the transactions in this exercise.

These transactions may be used for oral drill, but you should be required to write out the entries afterward, including full explanations of each. It is quite as essential for a bookkeeper to understand how to write a good explanation of an entry as to know how to make the entry.

Number One.

229. Directions. The following group of transactions will afford additional practice in the use of the journal. You may use a bill book, but will not need a cash book or a sales book. It will be well for you to make the entries on loose sheets first.

July

Transactions.

1. Begin business and invest $10,000 in cash, and merchandise valued at $5000.

3. Sell S. T. Barnes 100 bbl. St. Louis flour @ $4.75, 100 bbl. Em-
pire flour @ $ 5.25, and 50 bbl. Minnesota XX flour @ $5.00.
Receive in payment a note in his favor, made by M. A. Hudson,
dated June 3, at 90 days, for $1000, with accrued interest for 30
days. Balance on account.

8. The cash drawer was opened last night and $12.50 was stolen.
11. Buy of E. E. Kent merchandise to the amount of $1157.50, per
invoice of this date. Give him in payment M. A. Hudson's note
for $1000, with accrued interest to date, and your note at 30
days with interest for the balance.

15. Loan C. M. Graves $10 in cash to be repaid in 30 days.
18. Buy of H. J. Perkins merchandise to the amount of $1543.25, per
invoice of this date. Terms: 60 days, 3% 20 days.

22. Buy of the Office Supply Co. for cash, 1 typewriter table and chair,
$10.50; 2 reams linen paper, $2.80; and 1 filing cabinet, $13.75.
Total, $27.05.

25. Exchange notes with Henry Gould for your mutual accommoda-
tion, each note being at 60 days and for $5000.

26. Discount at the Third National Bank Henry Gould's note which
you received yesterday and receive credit for the proceeds.
30. S. T. Barnes has been compelled to compromise with his creditors,
and you have received in settlement a check for 37% of your
claim.

Your entry should be one which, when it is posted, will close his account.

230. Directions. Post and take a trial balance, but do not prepare any statement or close your ledger. You may next journalize the following

Transactions.

Aug. 2. Pay H. J. Perkins's invoice, less the discount of 3%, by check on the Third National Bank.

5. Sell Robert S. Crane 125 bbl. Minnesota XX flour @ $5.00, 500 bbl. Maine potatoes @ $2.25, and 500 bbl. Baldwin apples @ $1.55. Receive in payment your note of July 11 in favor of E. E. Kent, with the accrued interest to date, Mr. Crane's note at 20 days for $ 500, and a certified check for the balance.

8. Buy of Spencer & Co. 100 shares Union Pacific R.R. stock at $145. Give in payment your note at 90 days, with interest, for $5000, and a check for the balance.

12. C. M. Graves has repaid the loan of July 15.

15. Buy of N. M. Brown for $15,000, the store in which you are doing business. Give him in payment your Union Pacific R.R. stock at $147 and a check for the balance.

19. Some time ago you indorsed a $500 note for Fred Brown. The note came due to-day, and, as Brown was able to pay only $375, you have given check for the balance.

22. Pay the annual taxes on your store, $145.69.

26. Sell Wilson & Adams 75 bbl. St. Louis flour @ $4.75, 75 bbl. Empire flour @ $5.25, and 50 bbl. Maine potatoes @ $2.25. Terms: 30 days, 5% 10 days.

29. Fred H. Brown has offered you a delivery horse and wagon in settlement of his account, and you have accepted the offer.