Reconciling the Bank's Statement. It frequently happens that the balance shown by the bank's statement does not agree with the balance shown by the depositor's check book. This is usually due to the fact that some checks written near the close of the month have not yet been paid by the bank, hence, they are not included in the statement. To explain this difference is to reconcile the bank account. The checks should first be arranged in numerical order and compared with the check stubs. A red ink check mark or 0. K. should be placed on the check and on the stub. The missing checks should be listed by number and totaled. This total should then be subtracted from the bank's balance as shown by the bank's statement. The difference should equal the balance as shown by the check book. A record of this reconciliation may be kept on the left check stub, or, if the number of checks unpaid is large, it may be kept in a special Reconciliation Book. DETAILS OF DEPOSIT Jan. 10 Deposit : Silver Currency J.C. Willis C.D. Fellers 90.75 The check book is that December 15. 16. 18. 345.75 Deposited $3000, in bills. of C. H. Oliver and the checks should be signed by him. Drew check No. 1, in favor of C. N. Cable, for printing letter and bill heads, $6.75. Drew check No. 2, in favor of the Bender Coal Co., for 10 tons of coal at $5.25. Forward the balance to the top of the second sheet. 20. 22. 24. Deposited bills, $20, silver, $25, J. B. Grant's check Exercise 28. On sheets of paper make out the papers called for. 1. On January 10, sold G. C. Burns, Appleton, Wis., on the terms, 2/10, n/30: 8 bx. Wool Soap at $3.75 10 bbl. White Star Flour at $4.35 15 bbl. Syracuse Salt at $1.65 2. Make a receipted invoice for the following: On May 8, sold C. S. Silber, Columbus, Ohio, for cash, less 3%: 3. 12 Oak Dining Tables at $15.75 15 Turkish Rockers at $28.75 5 Mahogany Library Tables at $13.75 24 Oak Desk Chairs at $3.15 From the following data, write a promissory note: Your place; current date; time, 60 days; face of note, $315; payable at First National Bank; interest, 6%; maker, Student; payee, L. C. Stern. Show the due date of the note. 4. From the following, write a promissory note: Chicago, Ill.; Jan. 31; time, 3 months; face of note, $1175.85; payable at Merchants Bank; interest at 7%; maker, Brown & Co., by its president, C. G. Brown; payee, B. C. Goodwin. Show the due date. CHAPTER XV WHOLESALE GROCERY The Object of this set is: SET V 1. To give the pupil further drill in the use of the books of entry and in the various steps necessary in keeping a continuous set of books. To illustrate a simple partnership business. 2. 3. papers. To give the pupil practice in making out the common business 4. To give him practical work in dealing with the bank and in keeping the necessary records. The transactions are so arranged that the practice work may be omitted if the teacher desires. But the writing of the business papers and the practice work with the bank are strongly recommended.. If there is no bank in connection with the school, the entries in the pass book may be made by the teacher or by pupils designated for that work from time to time. Special Instructions. All cash received is in the form of school currency. This is called Incoming Currency. When the business receives cash, it is taken out of Incoming Currency and placed in the Cash Drawer. When a deposit is made, the currency is taken out of the Cash Drawer and placed with the deposit ticket in the pass book. All payments are made by check. As soon as the check is written and entered, it should be torn out of the check book and placed in the Bank envelope. All invoices, receipts, and notes should be made out and entered, and then put in the Outgoing Papers envelope. You should now be sufficiently accurate and exact in your work that it should not be necessary to enter the transactions on loose sheets first. The cash book may, however, be entered on loose sheets first if the teacher desires. Begin a new page in each book of entry. Twenty-five price lists are provided and may be used or not as the teacher desires. Each pupil may be given work in business correspondence in connection with his bookkeeping work. He may be required to write letters ordering goods, to answer inquiries, to write letters making remittances, and to COST AND SELLING PRICE LISTS, SET V ARTICLES QUAN- COST Baking Powder... Canned Corn.. Canned Peaches. Doz. Flour.... K. Cleanser.. Macaroni. Matches.. Oat Flakes. Soap. Starch.. Sugar. W. Biscuit. ARTICLES Baking Powder... Canned Corn.. Canned Peaches. Coffee... Flour... K. Cleanser.. Macaroni.. Matches. Oat Flakes. Sugar.. W. Biscuit.. SELLING PRICE LISTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 | 24 | 25 Case 2.10 2.72 2.76 2.65 2.81 2.69 2.88 2.73 2.84 2.79 2.68 2.85 2.74 Doz. .70 1.10 .84 .83 1.11 1.09 1.12 1.08 1.13 1.07 1.14 1.06 1.15 Doz. .85 .94 1.25 1.29 .97 1.17 .96 1.16 .98 1.14 1.19.99 .95 Lb. .25 .40 .38 .32 .28 .31 .33 .39 .32 .40 .34 .29 .41 Bbl. 3.65 4.52 4.49 4.64 4.35 4.46 4.51 4.61 4.53 4.62 4.54 4.63 4.30 Case 1.75 2.09 2.04 2.23 2.25 2.22 2.13 2.19 2.14 2.30 2.21 2.06 2.11 Case 2.05 2.51 2.46 2.30 2.41 2.32 2.40 2.54 2.47 2.39 2.45 2.42 2.35 Case 4.50 5.64 5.45 5.67 5.58 5.34 5.68 5.50 5.38 5.59 5.30 5.61 5.25 Case 1.90 2.66 2.55 2.67 2.56 2.65 2.62 2.50 2.54 2.61 2.40 2.59 2.45 Case 3.20 4.14 4.09 4.02 4.20 4.13 4.03 4.17 4.07 4.22 4 08 4.19 4.25 Box 2.35 3.12 2.75 3.02 2.96 2.99 2.86 2.98 2.91 2.87 3.04 2.92 3.15 Case 1.65 1.92 2.14 1.95 2.08 1.98 1.90 2.04 1.96 2.11 2.15 1.97 2.09 Lb.. .04 .05 .06 .05 .06 .05 .05 .05.06 .05 .05 .06 .05} Lb. .35 .46 .50 .49 .51 .43 .54 .55 .52 .48.45 .53 .44 Case 2.60 3.17 3.12 3.10 3.29 3.22 2.98 3.11 3.18 2.95 3 23 3.16 3.25 acknowledge receipt of remittances. given at the close of this chapter. Model letters of different kinds are TRANSACTIONS FOR JUNE June 1. Student and Robert Parker have today formed a copartnership under the firm name of Student and Parker. Each partner invests cash, $2000. They agree to share profits and losses equally. Make a memorandum of this agreement in the journal. The entries must be made in the cash book. An account must be kept with each partner to show his interest in the business. Make an entry in the cash book for each partner's investment. Take the currency from the Incoming Currency and place it in the Cash Drawer. |