MARCH 5, 189-. No. 108.-This cash is the amount of the retail sales for the week. Enter in the proper book and place the cash in the Cash Drawer. No. 109.-This check is in settlement of account. The party signing the check has taken advantage of the discount allowed for prompt payment. Turn to your Sales Book, find the amount of his purchases, then take 2% of that amount and subtract to see if it equals the amount called for in the check. If found to agree, make the entry as follows on the proper side of the Cash Book. |||20 Batson in full-less | venerated 9741 In case your Cash Book does not contain the rulings for the discount, you will rule the columns the same as illustrated above. In posting items that contain discounts, observe the special instructions that will be given. Place the check in the Cash Drawer. MARCH 6, 189-. No. 110.-Go over the calculations of this bill. If found correct, prepare for pasting into the Invoice Book by applying a very small quantity of mucilage on the lower edge of the back of the bill. Let it dry, then apply another small quantity and paste the bill so that it will cover the first bill up to the double ruling that divides the heading from the body of the bill. (See illustration, page 67.) See that the right-hand edge of the bill is parallel with the first ruling of the money column. Extend the amount directly opposite the firm's name on the bill. No. 111.-Pay Barlow, Henderson Co. by check the amount the business owes them. Make the entry. In business it is not customary to make an entry for a check when it is issued, but to leave it until the close of the day or the beginning of the next day, when all the checks issued for the day are entered at once from the stubs. Therefore it is very important that a complete record be made on the stub, before the check is issued. Eighth Report. Make a report and hand same together with the vouchers and cash for others to the teacher. Have your cash, journal, and sales book sheets approved and copy them neatly into your regular books. Prove your cash to ascertain whether the amount called for by the Cash Book agrees with the amount you have in bank and in the Cash Drawer. (Your name) Posting. Open accounts with the following: on the 20th line of page 1; Real Estate on page 6, and C. R. Danenhower & Son, 1201 Broadway, City, on page 18. Post from the Sales Book first, debiting each person to whom you have made a sale. Do not forget to postmark in the Sales Book. Place the letter "S" in the explanation column of the accounts to which postings are made from the Sales Book. Do not credit Merchandise for the total until the end of the month. Post from the Invoice Book, crediting each party from whom you have purchased. Do not forget to postmark on each bill directly opposite the extension. (See illustration, page 67.) Place the letter "I" in the explanation column of all accounts that have received postings from the Invoice Book. Next post from the Journal, following previous instructions. Post from your Cash Book as previously instructed. When you come to A. P. Batson's account, credit him with cash received, $2197.41, using the letter "C" as explanation. On the next line below credit him for discount, $44.85, using the term "Dis't" as explanation. This is the best method of handling merchandise discounts, as every account shows how much discount was allowed to it or received from it by the business. NOTE.-If we were to treat this entry as it is often treated by some business houses and authors on bookkeeping; i. e., credit Mr. Batson for $2242.26, the amount he owes the business, and debit Mdse. Discount for $44.85, we would make a record that would not be strictly true. Were we to post the $2242.26 to Mr. Batson's account, it would appear that he had paid us that amount and that no discount was allowed. No. 112. Verify the calculations of this bill and O. K. same, if found correct. Paste it into the Invoice Book, as previously instructed. Cover the second bill as far as the double ruling which divides the heading from the body of the bill. (See illustration, page 67.) Extend the amount directly opposite the party's name on the bill. No. 113.-Bill and enter this order, being careful to place the terms asked for on the bill. Make the entry, file the order and place the bill in the proper receptacle. No. 114.-Turn to T. A. Cooke's account in the Ledger and ascertain the amount he owes the business. He has consented to honor our drafts so long as he owes the business. Draw on him at sight for the amount he owes the business, making it payable to J. J. Disosway & Co. Debit the party who receives the value and credit the party who supplies the value. Place the draft in Vouchers for Others. MARCH 9, 189-. No. 115.-Bill and enter this order, placing the terms asked for on the bill. filed the order and placed the bill in the proper receptacle? Have you No. 116. This written promise to pay the business a certain sum of money is to apply on account. Why is it payable to the business? Debit-Rule 17; credit-Rule 16. Be sure to credit the party who ordered this draft payable to the business, as he is the one who owes the business. Have you written the proper explanation? Consult your teacher whenever in doubt as to what the proper explanation should be, as that is a very important part of the entry. Place the draft in the Cash Drawer. MARCH 10, 189-. No. 117.-0. K. this bill if the extensions are correct and paste it into the Invoice Book. Follow previous instructions in detail. Have you extended the amount directly opposite the firm's name? MARCH 11, 189-. No. 118.-Bill and enter this order, being careful that the terms and calculations are correct. Make out a set of shipping receipts and take them to the freight agent or teacher and have him receipt same. Enclose the original with the bill in a properly addressed envelope. File the order. (your name) No. 119.-Accept this draft in red ink. Write "Accepted payable at City Bank, March 11, 189-, C. W. Hammond & Co., per Make this entry, applying the instructions given in paragraph "e" under drafts, page 52. Place the acceptance in Vouchers for Others. Have you written the proper explanation for this entry? MARCH 12, 189-. No. 120.-Cash sales for the week. Count the cash and make the entry. No. 121.-Make a deposit of all checks and currency on hand. Be sure that you have endorsed all the checks properly. No. 122.-Pay C. R. Danenhower & Son's bill by check less the discount allowed for prompt payment. Turn to their bill in the Invoice Book and ascertain what the terms and rate of discount are. Calculate the discount and deduct it from the amount of the bill. Write a check for the net amount, being sure to explain on the stub that a discount was allowed. Make an entry similar to the entry made when the business received a check less discount, from A. P. Batson. Why is this entry made on the credit side of the Cash Book? MARCH 13, 189-. No. 123.-Bill and enter this order, placing the terms asked for on the bill. Place all vouchers in the proper receptacles. No. 124.-Accept this draft, following instructions for No. 119. Have you made the proper explanation for this entry? Place the acceptance in Vouchers for Others. Ninth Report. Make a report and hand all vouchers and cash for others to the teacher. Have your work on the journal sheets examined and copy same into your regular books. Prove cash to ascertain if the balance as shown by the Cash Book agrees with the actual balance on hand. Posting. Open the following accounts: C. W. Jefferson, 551 Fourth Ave., City, on the 14th line of page 18, and White Star Mills, City, on the 29th line of the same page. (1) Post from the Sales Book. (2) Post from the Invoice Book. (3) Post from the Journal. (4) Post from the Cash Book. When you post the entry on the credit side apply the instructions given for Mr. Batson's account in your previous posting, being careful that you post to the debit of C. R. Danenhower & Son's account instead of the credit. Have you placed the initials of the books from which you posted in the explanation column of the ledger accounts? Check over your posting. MARCH 14, 189-. No. 125. Verify the extensions of this bill, O. K. it if found correct, and enter in the Invoice Book. Have you extended the amount directly opposite the firm's name? No. 126.-Bill and enter this freight agent receipt for the goods. envelope. File the order. order. Make out a set of shipping receipts and have the Enclose the original with the bill in a properly addressed MARCH 15, 189-. No. 127.-Pay Lerch Bros. by check the amount the business owes them and make the entry. MARCH 16, 189-. No. 128.-Ascertain from the Ledger the amount Frey & Thomas owe the business. They have consented to honor our draft for that amount. Draw a draft at ten days' sight, making it payable to Ballard & Ballard Co., whom the business owes. Debit the party who receives the value and credit the party who supplies the value. Place the draft in the proper receptacle. MARCH 17, 189-. No. 129.-Note favor of J. J. Disosway & Co. for $1250 made payable at your bank is due to-day. As it is made payable at City Bank it is paid out of the firm's deposit and charged to the firm the same as when the bank pays the firm's checks. At the end of the month when your pass book is written up it will be returned to you with the checks. To keep your check book balance even with your bank balance it will be necessary for you to deduct the amount, and write an explanation. On the left-hand stub write "March 17, 189-. Bank paid note favor J. J. Disosway & Co., $1250.00." On the right-hand stub deduct the amount from the last balance. Make the entry on the credit side of the Cash Book, applying rules 19 and 4. Why? NOTE. In many places the banks require their depositors to pay notes made payable at the bank by check. When this is done the notes are cancelled and delivered to the depositor at the time they are paid instead of holding them until the pass book is written up. In that case the stub of the check takes the place of the detailed record explained above. Follow the instructions as given above unless otherwise directed by the teacher. MARCH 18, 189-. Paste into the Invoice Book, No. 130.-Verify the calculations and O. K. this bill. following previous instructions. Do not forget to extend the amount directly opposite the firm's name every time you paste a bill into the Invoice Book. No. 131.-Pay Renaker & Heinrich by check the amount the business owes them and make the entry. MARCH 19, 189-. No. 132.-Amount received for cash sales during the past week. Do not forget to make the entry. MARCH 20, 189-. No. 133. This check is to apply on account. Make the entry and place the check in the Cash Drawer. No. 134. This check is in full settlement of account. No. 135.-Deposit all checks and currency on hand. Do not fail to endorse the checks properly. MARCH 21, 189-. No. 136. Turn to Coyle, McCandlish & Co.'s bill in the Invoice Book and ascertain the terms and rates of discount allowed when prompt payment is made. Calculate the discount and deduct from the amount of the bill. Write a check for the net amount, being certain that you make a proper record of the discount on the stub, so that you will be able to make a proper record therefrom in the Cash Book. This entry is similar to entry for No. 122. MARCH 22, 189-. Note No. 137.-Go over the calculations of this bill and O. K. same if found correct. the terms of the bill; also the discount allowed. Although the terms are cash, do not pay it until instructed. In business the term "Cash" is frequently construed as meaning any time within ten days. This lapse of time enables the purchaser to receive the goods before paying for them. Enter as previously instructed, extending the amount of the bill directly opposite the party's name. |