Back to Book

Cyclopedia of Commerce, Accountancy, Business Administration, v. 04 (of 10)

11. _Account books_ are ruled with special forms which adapt them

151 words  |  Chapter 7

to bookkeeping records. The forms of ruling are many and varied to suit the requirements of different classes of business. Rulings for double entry bookkeeping do not differ materially from those used in single entry. For double entry, at least two amount columns must be provided--one for debits, and one for credits. The most common form of ruling is known as _journal ruling_. A book with this ruling is also known as a _journal ledger_. The words in parentheses explain the purpose of the different columns. The abbreviations _Dr._ (debit) and _Cr._ (credit) are sometimes written at the head of the amount column; but most bookkeepers omit them, as the position of the columns indicates their purpose. DEMONSTRATION To illustrate the manner of entering transactions in accounts, we show in the accompanying diagrams how the transactions used in the foregoing examples would appear in the proper accounts. [Illustration] EXAMPLES FOR PRACTICE
Previous Chapter Chapter List Next Chapter

Chapters

1. Chapter 1 2. PART I 3. 1. Bookkeeping is the art of recording the transactions of a business 4. 6. There are but two methods or systems of bookkeeping, and they are 5. 7. As the name indicates, single entry is a single record of the 6. 8. Double entry is a system of making two entries (or a double record) 7. 11. _Account books_ are ruled with special forms which adapt them 8. 1. On journal ruled paper, which can be procured at any stationer's, 9. 2. Write up the account of John Doe, showing also the accounts 10. 3. Write up the accounts covering the following transactions, by the 11. 4. Write up the same accounts by the double entry method, using a 12. 12. Account books are of two classes: (_a_) those in which complete 13. PART II 14. 1. After you become familiar with each entry and the nature of the 15. 2. Journalize the following transactions: 16. 1. From the copy of the journal (Article 66) which you have made, post 17. 2. Post the transactions from the journal you have made (Exercise 2, 18. 3. Make a trial balance of the ledger accounts. 19. 90. The note returned to us is $2,010.00, that being the amount of 20. introduction of many labor-saving methods and devices. One of these now 21. 4. Submit the journal entries to be used in apportioning the profits, 22. 5. Submit proper entries when Kemp's interest is purchased, assuming 23. 6. Submit trial balance of ledger of Benton & Douglas as the accounts 24. 1. Show all entries required to complete the liquidation of this 25. 2. At the final settlement, how much cash does each partner receive? 26. 1. A corporation is organized with a capital of $50,000.00, divided 27. 2. _A_, _B_, and _C_ organize a corporation with an authorized 28. 3. John Davis and Daniel Greene own the La Belle mine, and to secure

Reading Tips

Use arrow keys to navigate

Press 'N' for next chapter

Press 'P' for previous chapter