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The Theory of Accounts

The Theory of Accounts


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This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1913. Not illustrated. Excerpt: ... the ledger has been passed through the day book or journal. The footing of both sides of each ledger account should be entered on a sheet and the excess of the total of one side of all the accounts over the other will be the "balance of the ledger." If posted and taken off correctly, they should exactly equal the total of the difference of the total sides of the day book. The proof of the correctness therefore consists in equal balances of day book and ledger instead of equal debits and credits. The loss or gain is determined from books kept by single entry by comparing the total assets with the total liabilities, the excess of the one over the other constituting the net gain or loss for the period under review. 101. A mercantile house draws on its customers at sight, depositing its drafts in bank. Occasionally a draft is returned dishonered. What entry should be made when a draft is drawn, and what counter-entry should be made when the draft is returned dishonered? Sight drafts should be treated as checks and should be credited on the cash book to the person on whom drawn previous to deposit in bank. When the draft is returned dishonered, a check should be given to the bank in payment of same, and expenses (if any), which should be charged in the cash book to the party by whom draft was dishonered. 102. Describe a plan for handling invoices of materials purchased for the use of a factory, payments for which are to be made at the best discount date. The simplest and most expeditious method is, after the invoices have been checked and passed through the books, to deposit them in files (each file containing one month's due payments) under the date for payment which will enable the best discount rate to be obtained. The cashier daily draws checks for all invoices, ...


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Product Details
  • ISBN-13: 9781151203922
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 48
  • Spine Width: 3 mm
  • Width: 189 mm
  • ISBN-10: 1151203920
  • Publisher Date: 01 Jan 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 104 gr


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