(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.

(b) 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 59l. 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.

(b) 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 a/c 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.

(b) 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 :

on Jones, Loyd, and Co.

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

gns. @10s. 1d.

158 6 2

(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.

(b) 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 59l. 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.

(b) 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 a/c 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.

(b) 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 :

1857, Jan. 1. Received the first list of Debtors :

J. Brown owes 50l.; J. Smith owes 450l.; B. Camp owes 951.; W. Robin.

son owes 471.

1857, Jan. 9. Received J. Brown's bill at 1 month, 50l.

10. Received J. Smith's bill at 1 month, 4507. 12 Received B. Camp's bill at 2 months, 951. 13. Received W. Robinson's bill at 1 month, 471. 1857, Feb. 1. Received a monthly list of Debtors :W. Brown owes 841.; W. Robinson 1557. 1857, Feb. 9. Paid into banker's, bills, 5471.

:

10. Received W. Robinson's bill at 1 month, 1551. 17. Ordered banker to remit to my employer, 5001. Mar. 1. Received monthly list of Debtors :

J. Smith owes 2507.; B. Camp owes 4007.; J. Brown owes 501.
Mar. 7. Received J. Smith's bill at 1 month, 5207.

16. Ordered banker to remit to my employer, 2801.

Set to Candidates for the Inland Revenue, &c;

SPECIMENS OF THE EXAMINATION PAPERS IN BOOK-KEEPING BY

DOUBLE ENTRY.

Note to Candidate.-The following transactions, given in the order of their occurrence, are to be written into the necessary books, and the Ledger is to be closed and balanced:

1855.

Aug. 1. Balance of Cash in hand.

£ S. d.

337 2 1

Balance of Cash at Bankers' (Jones, Loyd, and Co.).

43 2 9

8. Bought of Ingram and Co. 13 butts Marsala, at
£17 10 0

227 10 0

10. Sold the above to James Rogers @ £18 10 0

13. Paid duty on 3 butts Marsala, for James Rogers,
323 gallons at 5s. 6d. and 5 per cent., by cheque
on Jones, Loyd, and Co.

Bought of Reay, Turner, and Co. 6 hhds. Brandy 314
gns. @10s. 1d.

65 0 0

170 O

93 5 4

158 6 2

1855.

Aug. 14. Sold same to Charles Jay, viz. 314 gns. @ 10s. 8d.

Received of Loddy and Son their acceptance at
2 mos. for their a/c

19. Recd. of James Rogers balance of amt. paid for duty
and interest

viz. Balance
Interest

210 0 0

28 6 0

£28 5 4
008

19. Reed of James Rogers his Acceptance at 3 mos. for
am' of a/c and interest

243 10 0

22. Paid into Jones, Loyd, and Co. for discount 2 bills

453 10 0

25. Paid Reay, Turner, and Co. by cheque on Jones,
Loyd, and Co.

Paid M. J. Reilly by cheque on Jones, Loyd, and Co.

£167 9 4

4 3 10

Note to Candidate. It is important in answering this Paper to carry through all the books at least a portion of it, and if it is found that so long is taken over the first part as to render it unlikely that the whole can be finished in the time allowed, so much only should be proceeded with as can be completed.

Another paper:—

1. Read the following memoranda of transactions :1856.

July 1. Bought of R. Symonds and Son:

1 Hhd. Sauterne

£ s. d.

28 0 0