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5. Describe the process of balancing. What errors are not checked by

it, and how are they guarded against in practice ?
8. A set of books is kept by Single Entry, and the books used are-

1. Day Book or Sales' Book.
2. Cash Book.
3. Bill Book.

4. Ledger.
Show how this set of books could, at the end of a year, be changed

to Double Entry, without making any fresh ones.

Note to Candidate. The following should not be attempted till all you

can do of the preceding has been completed. B. Copy the following transactions into either

1. A Sales' Book or Day Book, a Cash Book, and an Invoice

Book; or— 2. (In the case of your not being able to do so) into any books

that you consider would do in their stead. In each case you must rule paper for yourself. 1856.

£ s. d. July 1. Cash in hand

125 10 0

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10. Received of Benj. Smith

viz. a/c

less 14%

£26 0

0 7 0

1856. July 20. Accepted draft of J. Edwards & Son, at 2 months .

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Questions set in a Competition for a Clerkship in the

Colonial Office,

ACCOUNTS AND BOOK-KEEPING. 1. Under what circumstances will the Dr. side of a Cash Book be the

greatest ? 2. A. has a balance of Cash in hand on January 1st of 251. On January 10

B. remits to him 5101. with directions to purchase certain goods on his [B.'s] account. Accordingly A. buys of C. goods worth 45l., of D. goods worth 3101., of E. goods worth 271., all on January 11. On January 15, January 17, and January 20 respectively A. pays for these goods. A. is to be allowed by B. 5 per cent on his purchases. Give a copy of A.'s Cash Book, of A's Ledger a/c for B., of A.'s Ledger a/c “ Cash,” and of the account which A. should render to

B. In each case rule paper for yourself. 3. Journalize the following:

£ Jan. 1. Balance of Cash in hand

407 2 9 Balance of Cash at Banker's

1507 3 4 10. Bought of J. Smith, goods

49 0 0 Feb. 12. Accepted draft of J. Smith

49 0 4. On re-opening a set of books there are balances of the following

accounts :- Merchandise, Cash, Bills Payable, Bills Receivable, Fix. tures and Furniture. State on which side of the Ledger each

balance will be placed. 5. At the end of the year and before they are closed, A.'s books show

the following facts :-The total of the amounts on the Dr. side is
109,8711. 7s. Ild. The Dr. side of his goods account amounts to
60,0001., and the Cr. to 40,0001. The Dr. side of Stock a/c is 9,0001.,
and the Cr. 18,5001. The Dr. side of Profit and Loss account is
4501. 7s. 6d., and the Cr. 391. The value of goods on hand is
21,2071.
(a) Give a copy of Stock a/c as it would stand after the Ledger

had been closed.
(1) State whether A. is solvent or insolvent, and the amount

which he is worth, or by which he is deficient.

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(c) State whether A. has lost or gained in the year.
(d) Give the total of the amounts on the Cr. side of A.'s Ledger

before the closing entries had been made. 6. At balancing his books A. discovers that he has made the following

errors:

(a) He has posted 251. to the Dr. of J. Smith instead of to the

Dr. of W. Smith. (6) He has posted 521, to the Dr. of W. Smith instead of to the

Cr. (c) He has posted, from a Journal entry " Goods Dr. to W.

Brown” to the proper side of Goods a/c, but not to

Brown's a/c at all. (d) He has journalised “ Cash Dr. to W. Brown 591. 10s.,"

when the amount should have been 591. 15s. He will make no transfer in the Ledger except as a post from

a Journal entry. Show how each of these errors is to be

rectified. 7. The books of certain Government Departments are kept in the following manner : they have – (a) The entries in the Journal divided between two money

columns, all the amounts to be debited being placed in

one and those to be credited in the other. (6) The Journal totalled throughout, the sums of each page

being taken to the next, and so on through the year. (c) No entries in the Ledger except those which correspond

with a Journal entry. (d) The 'trial balance' made by taking the total of each side of

each asc, whether that alc be balanced or not. What advantages are gained by these means ? 8. Assume that you are agent to a gentleman who lives abroad, and that the nature of the business you transact for him is as follows:

To receive payment of debts due to him, which shall always be paid in Bills, acting in this respect on a memorandum periodically furnished to you. To pay all the bills received into a banker's in sufficient time for their collection, and to order him to remit to your principal such sums as may from time to time seem to you advisable.

It is required also that you keep for your employer a set of books which shall record your transactions by the system of Double Entry, showing, each in a separate account, the following facts :(a) The amount, at any time, owing by each of the Debtors

respectively.
(6) The total amount owing by them, i.e. the total amount of

debts outstanding at any time.
(c) The amount in your own hands.
(d) The amount at the banker's.
(e) The amount remitted.

Give the Journal entries, to which the following transactions would give rise :

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on Jones, Loyd, and Co.
Bought of Reay, Turner, and Co. 6 hhds. Brandy 314

93 5 4

gns. @ 10s. ld.

158 6 2

State whether A. has lost or gained in the year.
Give the total of the amounts on the Cr. side of A.'s Ledger

before the closing entries had been made. 6. At balancing his books A. discovers that he has made the following errors :(a) He has posted 251, to the Dr. of J. Smith instead of to the

Dr. of W. Smith. (6) He has posted 521, to the Dr. of W. Smith instead of to the

Cr. (c) He has posted, from a Journal entry " Goods Dr. to W.

Brown” to the proper side of Goods a/c, but not to

Brown's a/c at all. (d) He has journalised “ Cash Dr. to W. Brown 591. 10s.,"

when the amount should have been 591. 15s. He will make no transfer in the Ledger except as a post from

a Journal entry. Show how each of these errors is to be

rectified. 7. The books of certain Government Departments are kept in the following manner : they have — (a) The entries in the Journal divided between two money

columns, all the amounts to be debited being placed in

one and those to be credited in the other. (6) The Journal totalled throughout, the sums of each page

being taken to the next, and so on through the year. (c) No entries in the Ledger except those which correspond

with a Journal entry. (d) The trial balance'made by taking the total of each side of

each a/c, whether that alc be balanced or not. What advantages are gained by these means ? 8. Assume that you are agent to a gentleman who lives abroad, and that

the nature of the business you transact for him is as follows:

To receive payment of debts due to him, which shall always be paid in Bills, acting in this respect on a memorandum periodically furnished to you. To pay all the bills received into a banker's in sufficient time for their collection, and to order him to remit to your principal such sums as may from time to time seem to you advisable.

It is required also that you keep for your employer a set of books which shall record your transactions by the system of Double Entry, showing, each in a separate account, the following facts :(a) The amount, at any time, owing by each of the Debtors

respectively.
(6) The total amount owing by them, i.e. the total amount of

debts outstanding at any time.
(c) The amount in your own hands.
(d) The amount at the banker's.
(e) The amount remitted.

Give the Journal entries, to which the following transactions would give rise :

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