Co. You indorse this acceptance over to J. L. Osborn & Co., who allow you its face, less discount at 6% for the unexpired time. Write and indorse the draft and make the proper entry. (Find due date and discount for unexpired time.)

JUNE 14.-You have the draft of S. A. Dodge & Co., received June 3d, discounted at the College Bank, and the net proceeds placed to your credit. Make the proper cash

book entry.

Hand the journal sheet containing the above entries, and the drafts which you have written, to your teacher for examination. Be sure you understand each transaction before proceeding.

NEW BOOKS TO BE USED.

In this month's work you will use, in addition to the books already in use, the invoice book and the bill book.

Bill Book. This book contains a list and a brief description of all notes which come into the business or which are given by the business. When notes are received or given, the information called for should be written under the proper headings, as shown in the bill book (see model, page 112). This model contains the proper entries for all notes received and given during the month of May. You may copy the entries found in the model bill book into your bill book exactly as they appear in the model. Your bill book will then show all notes on hand and outstanding at the beginning of the month of June.

Invoice Book.-This book is generally made up of the original bills themselves which are pasted in the invoice book, as shown in the model on page 113, and the amount of each invoice is carried into the money column of the invoice book, also shown in the model. When bills are received, after they have been O. K.'d, paste them in your invoice book, taking care that the right-hand edges of the bill do not extend into the money column of the invoice book. In order to avoid this, it may be necessary to trim the edges of some of the bills, for invoices coming from different business houses will not be of uniform size. Paste lightly on the lower edges of the invoice and let them lap over each other, as shown in the model.

It will be seen that the money column of the invoice book should contain the amount of all merchandise bought by the business, and therefore the footing of this money column should be the debit of the Merchandise account. It will no longer be necessary to enter merchandise purchases in the journal, but at the end of the month, or at such periods as may be desired, the footing of the money column of the invoice book should be carried to the debit side of the Merchandise account, and the page of the invoice book carried to the folio column of the ledger, and opposite the footing in the invoice book should be written the ledger page of the Merchandise account. The amount of each bill should be posted directly from the invoice book to the credit of each person or firm from whom the merchandise is purchased, and the page of the account in the ledger should be written on the invoice itself, as shown in the model on page 113.

ARTICLES OF COPARTNERSHIP.

ARTICLES OF COPARTNERSHIP, made the first day of June, one thousand nine hundred, between J. B. Lamson, of Manchester, N. H., of the first part, and Frank W. Garland, of Boston, Mass., of the second part, witnesseth as follows:

Whereas, the parties hereunto, having mutual confidence in each other, do this day form with each other a copartnership under the firm name of J. B. Lamson & Co., for the purpose of conducting a wholesale business in tea, coffee, spices and general groceries, at 241 Chestnut St., Manchester, N. H., under the following terms and conditions, to wit: First. That the said J. B. Lamson of the first part shall contribute the entire resources of his late business located at 241 Chestnut St., Manchester, N. H., as shown by the statement prepared May 31, 1900, less the liabilities, as shown by his statement of liabilities prepared on the same date, which liabilities are to be paid by the firm of J. B. Lamson & Co. The total net investment of J. B. Lamson, as shown by these statements, is $7245. Second. The said Frank W. Garland of the second part shall contribute cash to the amount of $7245.

Third. The capital so formed is to be used and enjoyed in common between them for the prosecution and management of said business, to their mutual benefit and advantage. Fourth. Both parties shall devote their entire time to the business, and shall share gains and assets equally, and bear losses equally. J. B. Lamson is entitled to draw a salary of $125 per month, and Frank W. Garland is entitled to draw a salary of $100 per month from the funds of the business.

Fifth. The said J. B. Lamson hereby guarantees that all notes and personal accounts due J. B. Lamson, and invested by him in the firm of J. B. Lamson & Co., shall be worth their face value, less any regular trade discounts to which they may be entitled.

In Witness Whereof, the parties hereto have hereunto set their hands and seals, in duplicate, the day and year first above written. J. B. LAMSON. [L. S.] FRANK W. GARLAND. [L. S.]

Signed, sealed and delivered

in the presence of

}

F. W. EARL.

WORK FOR THE STUDENT.

JUNE.

No. 67.-JUNE 1. H. F. Adams is desirous of adding a line of standard groceries to the Tea, Coffee and Spice business in which he is now engaged. Not having sufficient capital to carry on the business alone, he has sold to you a one-half interest in his business for a sum equal to his net worth at the close of the month of May.

Mr. Adams is to do all the buying for the new firm and also to spend a part of his time as traveling, or outside, salesman, while you are to take full charge of the books. and attend to the payment of bills, make all notes, checks, drafts and other negotiable paper of the firm, and attend to the management of the store.

The gains and losses of the business are to be shared equally. Each partner is to give his full time to the business, and H. F. Adams is to draw a salary of $125 per month and you a salary of $100 per month. The firm name is to be H. F. Adams & Co.

Prepare articles of copartnership between the two partners, yourself and H. F. Adams, (see model, page 114). For amount of investment, see H. F. Adams's present worth, statement May 31. Present this copy to your teacher for approval, and make such changes as he may suggest. Copy carefully, in ink, on legal cap, the corrected articles of copartnership and present to your teacher, who will sign for H. F. Adams. Sign your own name below that of H. F. Adams, and affix seals. Ask some student, or your teacher, to sign as witness in the left-hand corner opposite the names of yourself and H. F. Adams. In business two copies should be prepared, one for each partner, and a lawyer experienced in partnership affairs should prepare these articles of copartnership.

Fold the articles of copartnership twice from bottom to top, and brief them by writing on the outer right-hand corner at the top the following:

Articles of Copartnership

between

H. F. Adams

and

(Student's Name)

June 1, 190

No. 68.-JUNE 1.

Procure from your teacher $200 in cash and check for the balance of your investment, which will be the same as H. F. Adams's present worth at the end of May. Enter the amount in the cash book on first line below the balance for June 1, crediting yourself for investment.

Write a check in favor of H. F. Adams & Co. for the amount of H. F. Adams's balance in Commercial Bank, as shown by the stub of your check book. Deposit this check and check received from teacher. You will no longer sign or indorse checks and other negotiable paper with your name as attorney, for you are now a member of the firm of H. F. Adams & Co., and have the same right to sign checks and other papers that Mr. Adams has; but, in order that your teacher may be able to identify your work readily, you will write your own name under that of H. F. Adams & Co. on all paper you may have occasion to indorse or sign.

No. 69.-JUNE 1. You will pay H. F. Adams's gas bill for the month of May, $7.87. This bill belongs to last month's business, but it has been agreed that such bills as did not appear on the books shall be paid by the new firm when due.

Write a check for the amount and place the receipted bill in your Voucher File. Place the check in Cash Paid Out. Make the proper entry in your cash book.

No. 70.—JUNE 3. This transaction calls for an invoice of merchandise purchased. Examine the invoice and see that it is correct. If found to be correct, paste the invoice in your invoice book and write the amount of the invoice in the money column of the invoice book (see model, page 113). No journal entry is required for this transaction for, as explained under "Invoice Book," page III, all postings are made directly from the invoice book.