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Ex. 69. Paid my note in favor of J. B. Fox, which has been held under protest since the 10th inst. for $8000; Int. $5.33, Protest Fee $1.72 by selling him the Fifth Ave. Block $4800. Balance in cash.

Ex. 70. Have allowed a claim of 3c. per lb. on 1000 lbs. wool, sold to the New England Mfg. Co. Not up to standard.

Ex. 71. J. B. Hanna having failed, made an assignment. His acceptance in our favor has been protested. We charge the amount of the draft and protest fee to C. H. Wood the drawer. Paid protest

fee $1.50, Draft $300.00.

Ex. 72. Bought a block of five stories on Superior St. for $30,000. Paid Cash $25,000 and gave a bond and mortgage for the balance, int. 5%.

Ex. 73. T. B. Pritchard buys F. S. Cramer's entire interest in the firm of Snyder, Hanis, Bassett & Co. for $15000 and pays cash Cramer's balance as shown by the firm's Ledger, is $11,326.50. in firm's books.

Entry

Ex. 74. Bought a farm of V. C. Taylor for $9230. Gave in payment a Bond and Mortgage on the farm at 3 years, Int. 5% for $4665. Cash for balance. Insured for $4,000 in Liverpool & London Insurance Co. for 3 years, paid $25 for title and $40 premium with cash.

Ex. 75. Paid Taxes for 1893 on farm with cash $95.50.

Ex. 76. Paid Wm. Downie $207.50 for painting my farm house and buildings by giving him a receipt in full for the balance of his account $215.75.

Ex. 77. Commenced business, Cash $5000. Bills Receivable $2500. Merchandise $7500. Wm. Johnston owes $1000. Business Block 100 Superior St. $75,000. I owe Bills Payable $1500. Brooks & Co. $3200. The W. Bingham Co. $300.

Ex. 78. Exchanged Notes with J. E. Hannon for our mutual accommodation, each at 30 days, $1000.

Ex. 79. Exchanged notes with D. Kennedy for our mutual accommodation. Each note at 30 days $1000. I have discounted his note and received cash for net proceeds. Discount $10.50.

Ex. 80. F. K. Strong, who lately failed, paid me 50c. on the dollar for the note I hold against him due last month. Received a new note endorsed by P. Black for $500. Balance is lost.

Ex. 81. Sold Merchandise to Jno. Thomas amounting to $3355. Received in payment my acceptance favor R. Hay due this day $2000. Cash $355 and an order at sight for the balance on G. J. Warden, which I deposit on account with Warden.

Ex. 82. Jno. Brown's note for $500 endorsed by E. S. Root remains unpaid since yesterday, have charged the same to Root's account. What entry?

Ex. 83. Found a $20 note on the counter and placed same in money drawer until claimed.

Ex. 84. Discounted William's Note of $3000 and int. at 5%, 4 mo. to run from Sept. 16, '93. Discounted Nov. 3, '93 at 6%.

Proceeds placed to my credit.

Ex. 85. Requested B. K. Jamison & Co., Philadelphia, Pa., to invest the proceeds of collection against Jno. Wanamaker in sight exchange on New York and remit the same to H. B. Claflin & Co. Exchange on New York at Philadelphia at 2% prem Amt. $2,218.86.

Ex. 86. Bought a 60 day sight draft on U. S. National Bank, New York for $2096.24 and remitted same to E. A. Wright of Philadelphia to balance account. Face of draft $2096.24. Exchange at 34%. Interest allowed for 63 days at 6%. Amount of check drawn to cover the purpose. The Exchange is at a Discount. Ex. 87. I owe H. A. Miller $2354.40. Paid him with his own note for $2250. Interest accrued on same $3.75 and cash for the balance.

Ex. 88. Insured my property for $25,000 through the agency of G. H. Olmsted & Co. for 3 years at 80c. premium, placed as follows: $5000 in Atlas of England, $5000 in Liverpool and London and Globe of London, $5000 in Norwich Union of Philadelphia, $5000 in Northern of New York, and $5000 in Union of Philadelphia. and survey $2.50. Paid the amount with cash.

Policies

Ex. 89. Discounted our note at 90 days at 6% and bought sight exchange on New York to settle our account with A. T. Stewart & Co. for $765.50, Exchange at 4 of 1% premium. Deposited as collateral 50 shares Union National Bank Stock. (Par $100)

Ex. 90. Hower & Higbee are doing business as equal partners. Hower offers to sell his entire interest in the business to Higbee for $75,000 which Higbee accepts, giving his personal check for the amount. Hower's Stock account is $67,500. What entry on firm's

books.?

Ex. 91. Bought Merchandise of Norris Bros. amounting to $675. Paid in part by their note dated Feb. 5, received Feb. 27, for $350. The Balance, including discount on note, is credited to account. Discount on note for 13 days is 76c.

Ex. 92. Sold to J. R. Zuck on account my draft at 30 days on H. R. Freed for $500.

Ex. 93. Bought Merchandise of J. S. Braddock amounting to $350: Paid in part by draft on J. S. McCaleb at 30 days sight for $175.32. Balance on account.

Ex. 94. Discounted in cash my acceptance of April 1, being D. W. John's draft for $400. Discount for 41 days allowed. $2.74.

Ex. 95. Sold to J. H. Vance, my draft on A. H. Strickler for $300. Received in part payment W. J. Hitchman's acceptance of Strickler's draft on him, and due Dec. 1, for $200. Cash for the Balance $100.

Ex. 96. Accepted M. E. Johnson's sight draft for $485.10, Ex. of 1% in favor City Bank, payable at the State National Bank.

Ex. 97. Bought for cash of the Wick Banking Co., at 4% premium, a Bill of Exchange on Bank of N. America, N. Y., for $2000, and remitted the same to Lord & Taylor in payment of our acceptance now due. Premium at 4% $15.00.

Ex. 98. Drawn for private account $100 cash.

Ex. 99. S. A. Boyd paid his account in full yesterday in cash, to-day it is discovered that one $20 note is counterfeit.

Ex. 100. One teamster while delivering goods, had a 'run off' and totally destroyed china and cut glass-ware which had been sold for $100 cash, also killed the horse valued at $200.

NOTE-The acceptance of a draft is an engagement on the part of the drawee to pay the same; and in accepting it he assumes an absolute liability, and sustains thereafter the same relation to the draft that the maker does to a note.

When a draft is accepted, the drawee calls it his acceptance, and credits his Bills Payable account for the amount of his acceptance, unless it be a sight draft, in which case, if payment be not made at the time of accepting, he credits the holder of the bill, for it is no longer negotiable, but must be disposed of be. tween the acceptor and the holder. From this, it is seen that a sight draft can never become a Bill Payable, for as soon as presented it is due, and no overdue paper is entitled to the appellation or legal protection of a bill.

CHAPTER THREE.

Single Entry Changed to Double Entry.

It is surprising to know to what extent Single Entry bookkeeping is practiced even in houses doing a large business, because business men themselves are ignorant of the superiority of Double Entry.

Transforming the Single Entry Ledger into a Double Entry one, though simple as the process may appear after it is explained, it will be found that many accountants are not aware that there is any way of changing the principle of keeping the books but by the laborious and tedious process of transferring all the accounts to a new Ledgeran operation that is seldom necessary unless the old Ledger is filled.

The process of changing a set of books from Single to Double Entry is very simple. The characteristic difference between Single Entry and Double Entry consists in the use and application of the terms Dr. and Cr. These, in Single Entry, being applied only to persons or their representatives, it follows that the Single Entry Ledger can contain none other than personal accounts. Before proceeding to change a set of books from Single to Double Entry, it is necessary first to ascertain the loss or gain in business.

General Rule for Ascertaining the Gain or Loss in Single Entry.

To the liabilities add the balance of the stock account, when a credit; but when a debit add it to the assets; the difference between the assets and liabilities, when thus increased by the balance of the stock account, is the net gain or net loss in business,-net gain when the former exceeds the latter; net loss when the latter exceeds the former.

A great many bookkeepers and business men contend that a Trial Balance cannot be taken from a Single Entry Ledger. Nothing can be more absurd, and here is the proof:

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The proof of the correctness of the work in Single Entry books does not consist in equal debits and credits, but in equal balances of Day Book and Ledger. All the sums in the debit column of the Day Book being posted to the Dr. side of the Ledger and all the sums in the Cr. column being posted to the Cr. side of the Ledger, it is evident that the difference between the debits and credits of one book must be equal to that of the other. As none of the accounts upon the Ledger had been closed at the time of taking off this Trial Balance, we make use of the totals for the purpose of showing that the footings of the two books must agree. These footings will not agree, however, after any of the accounts in the Ledger have once been closed; but instead of taking the totals as we have done here, the same proof would have been obtained had we used the balances only, and in business this is the better way.

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