Having had your work approved, you will now balance the Cash account in the Ledger in red ink, writing on the smaller side, "Feb. 1, Balance to C. B.," and the amount. Rule the account and bring the balance to the debit side (left-hand page) of your journal sheet representing the Cash Book, writing in black ink, "Feb. 1, Balance on hand," and place the amount in the column nearest the center of the page. Write the word Cash on the top line of each page as you find it in the Model Cash Book.

Call for your Pass Book at the bank if you have not already received it. Compare the balance in the Pass Book with the balance in the Check Book, and if found to agree, write in red ink "O. K. with Bank Balance" opposite the balance in the Check Book. If there is a discrepancy, compare the checks returned by the bank with the amounts shown by the stubs to locate the error. If you fail to locate the discrepancy, consult the teacher.

Carefully file away the checks returned by the bank on the Voucher File. Remember that no receipts were taken when payments were made by check, therefore you will preserve these checks as evidences of payment. A check paid by the bank and returned to the depositor is the best kind of receipt, and should, therefore, be carefully preserved.

No. 38.-PROPRIETOR'S ADDITIONAL INVESTMENT. Mr. Hammond wishes to make an additional investment. Your teacher will hand you the amount your price list calls for in

the following table. Apply for same and count the cash carefully.

ADDITIONAL AMOUNTS TO BE INVESTED.

No. of

Price List. 1 2

Amount.

5000 5800 3600 5600 6000 4900 5500 5100 4300 5700 | 4200 | 4800 5900

14 15 5 16 17 18 19 20 21 22 23 24 25

5200 4500 | 3900 | 5400 4600 3700 4400 5300 4000 3800 4100 4700

What account has received value? (Rule 3.) What account has supplied value? (Rule 9.) Excepting the amount, make the entry as follows on the debit side of the Cash Book:

| | |CH Hammond | Invested

By this entry, Cash is debited and Mr. Hammond is credited. While the form varies, this entry does not differ in effect from the entry to be made in the Journal, in case there were no Cash Book kept. Give the reasons mentally for the debit and credit. (Rules 1 and 2.) Recount the cash and place it in the proper receptacle.

No. 39.-GAS BILL FOR JANUARY PAID. Read this bill, No. 39, carefully. Mr. Hammond wishes you to pay it to-day to take advantage of the discount allowed when payment is made on the first day of the month. Write the check for the net amount, first filling the stub properly, and deduct the amount from the balance in the bank. File the bill on the Voucher File and place check in proper receptacle. Determine the account to be credited by reading rule 4; the account to be debited by reading rule 13. Make the entry from the stub of the Check Book on the credit side of the Cash Book as follows:

No. 40.-RENT FOR FEBRUARY PAID. Pay the rent for the current month by check. Write the check, first filling the stub properly and deducting the amount from the previous balance. Examine your check carefully to see that you have made no errors. Tear it out and place it in the proper receptacle. No receipt is necessary. Why not? What account is to be debited? (Rule 13.) What account is to be credited?' (Rule 4.) Make the entry from the stub of the check book on the credit side of the Cash Book. Why? Have you written the proper explanation?

No. 41.-SALE ON ACCOUNT. Make out the bill for this order (No. 41). Place the terms (15 das.) asked for on your bill. Re-calculate the items to see that you have made no errors. Note the check marks to the left of the items, and Mr. Winter's initials under the word "Filled;" these indicate that the order has been filled and the goods sent. In making this entry apply the General Rules. Make the entry in the Journal, using a journal sheet for that purpose. Place the bill in the proper receptacle and file the order as previously instructed.

No. 42.-PURCHASE ON ACCOUNT. Examine carefully bill No. 42 and go over the calculations. Note that the items have been checked off by Mr. Winter, which indicates that all the goods called for have been received by him. Mr. Hammond's O. K. and check marks opposite the prices indicate as usual that the prices charged are satisfactory to him. He does not examine the extensions and additions of the bills; that is the duty of the bookkeeper. You will O. K. the bill as usual if the calculations prove to be correct. Apply the General Rules for debiting and crediting, and make the entry in the Journal. File the bill properly.

No. 43.-SALE ON ACCOUNT. Bill the goods called for in this order (No. 43). Go over your calculations a second time. Mr. Winter's check marks and initials under "Filled" indicate that the goods have been sent. Never make out a bill for an order that is not checked off, as that clearly indicates that it has not been filled. Apply the General Rules for debiting and crediting and make the entry in the Journal. Place the bill in the proper receptacle and file the order.

FEBRUARY 2, 189-.

No. 44.-PURCHASE ON ACCOUNT. Examine this bill, verify the calculations and O. K. it. Are the items checked off in the vertical column to the left of the items, and has it been O. K.'d to show that the prices are correct and all the goods have been received? Never enter a bill that is not checked off and O. K.'d, as there is nothing to indicate that the goods have been received, as two or more bills may be sent for the same lot of goods, or the bill sent and the goods not delivered by oversight. Were you to credit the parties for every bill sent, you would very likely pay out money for goods that were not received. Apply the General Rules for debiting and crediting and make the entry in the proper book. File the bill.

No. 45.-CASH RECEIVED ON ACCOUNT. This check is in part payment of bill sold on the first inst. What has been received? Who supplied it? Note the indorsement on the back. The indorser is the one who supplied value to the business. Apply the General Rules for debiting and crediting and make the entry on the debit side of the Cash Book as follows: "2, T. A. Cooke, on acct.," and the amount. Why is this entry made on the debit side of the Cash Book? Place the check in the Cash Drawer.

66

No. 46. CASH RECEIVED IN FULL OF ACCOUNT. Check No. 46 is in full payment of balance due by the party who sends the check. Refer to his account in your Ledger and see if the amount named in the check is the amount required to balance the account. Report to your teacher if you find that there is a discrepancy. What account has received value? (Rule 3.) What account has supplied it? (Rule 16.) Explanation excepted, this entry is similar to the entry for No. 45. The explanation should read "in full of acct." Place the check in the proper receptacle.

FEBRUARY 3, 189-.

No. 47.-DEPOSIT. You will now make a deposit. Count the currency in your Cash Drawer, fill out a deposit ticket, entering the amount opposite the word "Currency." Indorse the checks as instructed on page 28, and enter each separately where indicated on the deposit ticket. Foot the items, then carefully recount your currency and checks and re-add the items to make certain that there is no error. Enter the total amount of your deposit on the right-hand stub of your Check Book and add it to the last balance. On the left-hand stub make a copy of the items (names and amounts) on your deposit ticket, so that reference can be made to them when desired. Take your deposit together with your Pass Book to the bank. No. 48.-CASH PAID ON ACCOUNT. Pay Thos. J. Johnston & Co. by check $750 to apply on account. First fill the stub, deduct the amount from the previous balance, then write the check. Examine it carefully to see that you have made no mistake. Place it in the proper receptacle. Who has received value? What account has supplied it? Make the entry on the right-hand side of the Cash Book as follows: "3, Thos. J. Johnston & Co., on acct., 750." Give the reasons mentally for the debit and credit. Why is this entry made on the credit side of the Cash Book?

FEBRUARY 4, 189-.

No. 49.-CASH PAID IN FULL OF ACCOUNT. Turn to Barlow, Henderson Co.'s acct. in your Ledger and ascertain the amount the business owes them. Fill the stub of the Check Book, deduct the amount, then write the check for the balance due them. Examine it carefully to see that it is correct, then place it in the proper receptacle. Who has received value? What account has supplied it? Make the entry on the credit side of the Cash Book, similar to the entry for No. 48. The explanation should read "in full of acct." Why is this entry made on the credit side of the Cash Book?

No. 50.-PURCHASE ON ACCOUNT. Examine this bill to see if all of the goods have been received. How can you tell? Are the prices correct? Go over the calculations of the bill and if found correct O. K. it as per previous instructions. Make the entry in the Journal, applying the General Rules for debiting and crediting. File the bill properly.

Proving Cash. In small pencil figures, foot the sides of your Cash Book. Determine the balance by subtracting the credit from the debit footing. See if this balance agrees with the amount on hand, as shown by the check book stub, plus the amount in the Cash Drawer. Always exercise the utmost care in proving Cash so as not to make an error.