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DIRECTIONS FOR CHECKING FROM JOURNAL TO LEDGER.

In order to avoid mistakes in posting, many bookkeepers check every item from the journal to the ledger after it has been posted. As you have completed the posting for the month of February, you may check your entire journal to your ledger. On page 1 of your journal you find the item Cash, Dr., $2500. Put a small check mark opposite the $2500, as shown in the following form.

Cash

January 1, 190

Commenced the 3500

F. W. Leonard Flour and Grain

3500

business, investing

cash

Turn to the Cash account in your ledger; the $2500 should appear as the first entry on the debit side of the Cash account. If you find it there, place a small check mark opposite the $2500 as shown in the following form

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Check all your debits first. See that each debit item in the journal has been carried to the debit side of the account named in the ledger, and place a check mark against each account both in the journal and in the ledger. Check the credit items in the same manner. If any posting has been omitted, you will discover it in the checking; or if any item has been posted twice, or to the wrong side of an account, it will appear unchecked and will thus be detected. This process of checking requires a little extra time, but it prevents many errors in trial balances, and the student will find it a profitable exercise.

A hard, sharp-pointed pencil should be used for checking and for pencil footings in the ledger. Make your figures and check marks light.

No. 34.-Foot your ledger in light lead-pencil figures, as explained on page 19, and take off a trial balance, as explained on page 18. Your trial balance must show the footings of each account in your ledger. When accounts balance, they should be omitted from the trial balance.

No. 35. Submit your journal-daybook, ledger and trial balance to your teacher for examination and approval.

CONTINUATION OF FEBRUARY BUSINESS.

TO BE ENTERED IN THE JOURNAL-DAYBOOK.

No. 36.-MARCH I. Bought of H. S. Clough & Co. on account, 10 days, 200 brls. flour at $4.05 per brl., 1000 bu. oats at 30¢ per bu.; total, $1110. (Entry similar to transaction No. 15, page 23.)

No. 37.-MARCH 2. Sold Wm. Archer & Co. on account, 30 days, 500 bu. oats at 38¢ per bu., 50 bu. rye at 60 per bu.; total, $220. (Entry similar to transaction No. 18, page 23.)

No. 38.-MARCH 3. Paid Rice, Miller & Co. cash, $352.50, in payment of invoice of February 23d. (Entry similar to transaction No. 27, page 25.)

No. 39.—MARCH 3. Received cash of Emerson & Sons, to apply on account, $250. (Entry similar to transaction No. 26, page 25.)

No. 40.-MARCH 5. Paid H. S. Clough & Co. cash, on account, $500. (Determine the debit by rule 12; determine the credit by rule 6.)

No. 41.-MARCH 6. 344 per bu.; total, $340.

No. 42.-MARCH 7.

Bought of Kidder & Hill on account, 60 days, 1000 bu. corn at (Determine the debit by rule 7; determine the credit by rule 9.) Paid cash for freight and drayage to date, $15.

INSTRUCTIONS.-Cash paid for freight, cartage, drayage, etc., is a part of the cost of your merchandise, hence Merchandise should be debited and Cash credited. The following illustrates the form of your entry, though the amounts are different.

Mase.
Cash

Paid freight and
drayage to date

2250

2250

Rule 13.-Debit MERCHANDISE for all amounts paid for freight, express, cartage, drayage, etc.

No. 43.-MARCH 8. Sold E. H. French & Co. on account, 10 days, 300 bu. corn at 40 per bu., 400 bu. oats at 38¢ per bu.; total, $272. (Determine the debit by rule 10; determine the credit by rule 8.)

No. 44.-MARCH 9. You have withdrawn from the business, for private use, cash, $25. INSTRUCTIONS.-As the Proprietor is credited with money, property, etc., which he invests in the business, it is evident that he should be debited for anything which he takes out of the business. In this instance he has withdrawn cash, hence the Proprietor should be debited and Cash credited for $25. The following illustrates the form of your entry, though the amounts are different.

AH. Harper Grews from the

Cash

business for pri

vate use
Puse

rates

Use your own name in making the above entry.

50

50

Rule 14.-Debit the PROPRIETOR for all cash, merchandise, etc., which he takes out of the business.

No. 45.-MARCH IO.

Bought of Kidder & Hill on account, 30 days, 1000 bu. corn

at 36¢ per bu., 200 bu. rye at 54 per bu.; total, $468.

No. 46.—MARCH 11. No. 47.-MARCH 12. $4.60 per brl.; total, $230.

Paid H. S. Clough & Co. cash, $100, to apply on account.
Sold F. W. Garland, on his note at 10 days, 50 brls. flour at

The following illustrates the form of the note which F. W. Garland gives you, the amount being different.

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INSTRUCTIONS.-You have sold merchandise, and F. W. Garland has given you his written promise to pay in 30 days the amount of the bill. A written promise to pay is

called a note. When these notes, or promises, are in favor of the business, they are called "Bills Receivable," and, like any other property, they are debited when received and credited when disposed of; hence in this instance Bills Receivable should be debited and Merchandise credited. The following illustrates the form of your entry, though the amounts and explanation are different.

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Rule 15.-Debit BILLS RECEIVABLE for all notes (written promises to pay) that you receive which are signed by other persons.

No. 48.—MARCH 13. Sold Wm. Archer & Co., on their note at 15 days, 150 brls. flour at $4.60 per brl.; total, $690. (Entry similar to previous transaction.)

No. 49.-MARCH 14. S. A. Dodge & Co., who owe you $237.50, have requested you to accept their note at 30 days in payment of the account. This you have agreed to do. INSTRUCTIONS.-In this instance you have received S. A. Dodge & Co.'s written promise to pay, hence Bills Receivable should be debited (see rule 15). As S. A. Dodge & Co. have paid you on account, S. A. Dodge & Co. should be credited. The following illustrates the form of your entry, though the amounts and explanation are different.

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No. 50.-MARCH 15. J. S. Sumner sends you his note at 10 days to apply on account, $250. (Entry similar to preceding transaction.)

No. 51.-MARCH 16.

Sold S. A. Dodge & Co., on account, 600 bu. corn at 40¢ per

bu., 50 brls. flour at $4.50 per brl.; total, $465.

No. 52.-MARCH 17. Bought of H. S. Clough & Co., on account, 100 brls. flour at $4 per brl., 500 bu. corn at 354 per bu.; total, $575.

No. 53.-MARCH 18.

Sold J. B. Fulton, on his note at two months, 400 bu. oats at 38¢ per bu., 200 bu. corn at 40 per bu.; total, $232. (Entry similar to transaction No. 48.)

No. 54.—MARCH 19. Bought of Kidder & Hill, on your note at 10 days, 200 brls. flour at $4 per brl., 500 bu. corn at 354 per bu.; total, $975.

The following is the form of the note which you will give Kidder & Hill. amount is different.

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INSTRUCTIONS.-You have bought merchandise and have given Kidder & Hill your note or written promise to pay the amount of the bill in 10 days. Written promises to pay, given by you for the benefit of the business, are called "Bills Payable," and, like any other property, they should be credited when issued or disposed of, and debited when paid or received; hence Merchandise should be debited and Bills Payable credited for the amount of the note. The following illustrates the form of your entry, though the amounts and explanation are different.

Mdse.

9

Bot. of. B. F. Perry 600

Bills Pay. on my note at 60

600

days.

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Rule 16.-Credit BILLS PAYABLE for all notes (written promises to pay) which are signed by the Proprietor, and given for the benefit of the business.

No. 55.-MARCH 20. Bought of Warner & Freeman, on your note at 10 days, 600 bu. corn at 354 per bu.; total, $210. (Entry similar to previous transaction.)

No. 56.-MARCH 21. Sold A. H. Warren, on his note at 30 days, 50 brls. flour at $4.60 per brl., 190 bu. corn at 404 per bu.; total, $306. (Entry similar to transaction No. 48.)

No. 57.-MARCH 22. Sold Weston & Hill, on account, 25 brls. flour at $4.60 per brl., 380 bu. corn at 404 per bu.; total, $267.

No. 58.-MARCH 23. Bought of Chas. A. Hill & Co., on your note at 60 days, 1000 bu. oats at 33 per bu., 500 bu. corn at 35 per bu.; total, $505. (Entry similar to transaction No. 55.)

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