Received of John Smith as composition for a debt of
231. 10s. 6d. written off as bad in 1833

176 8 10

£15 0 0

10. What is book-keeping by double entry, and why is it so called? 11. What books are used in double entry?

12. Could any of the books you have named be dispensed with, and which? Which of them is necessary to any system of book-keeping?

13. Every transaction must be between two persons: J. Smith makes an entry, "R. Brown Dr. to Goods:" who are the two persons interested in the transaction so recorded?

14. On which side of a Cash Book should amounts paid away be entered? On which side must the balance always fall?

15. What is called the balance of an account? When is an account said to be "balanced?" What is it to balance the Ledger in double entry? What is a trial balance, and a balance sheet?

16. An agent receives from a merchant abroad authority to purchase goods for him in this country, and he buys of A. 250l. worth, of B. 300l. worth, and of C. 957. worth, and pays for them with bills drawn on his correspondent. He is to receive 5l. per cent. commission on his purchases. Give a copy of the account which it would be necessary to send to the merchant.

17. The following is an a/c of all the transactions with J. Smith on May 13:— Sold James Smith:

£

S. D. 54 0 0

22 10 0

2 3

Received of J. Smith his bill at three months for balance of a/c.

Give a copy of his acct in my ledger.

Accepted Bill drawn by John Taylor at three months
(and took his receipt as for balance of a/c) -

12 0 0

03

21 0

4

1. State what books these transactions would be recorded in, and which would be placed in each.

2. Give a copy of J. Taylor's a/c in my Ledger after the requisite entries

have been made in it.

3. Give a similar copy of my a/c in J. Taylor's Ledger.

5. From the subjoined list of transactions construct (1) a Sales Book or Day Book, (2) a Cash Book, and (3) an Invoice Book; and post all the entries into the Ledger :

20. Accepted draft of R. Jacobs and Son, at 2 months

6 15 0 4 12

15 0

84 0 0

60 0 0

22 10

3

60

29

0

viz. a/c

£26

62 10 0

6. Would any books beyond those above named be required to record these transactions by Double Entry? If so, name them, and give the entries which it would be necessary to make in them; also give a copy of the additional ledger a/cs. which would be necessary.

The Candidate is requested to observe—

1. That accuracy in copying is of great importance.

2. That no fair copy of the answers is to be made, but that the entries are to be written at once into the books provided.

3. That the calculations given in this paper may be accepted as correct, and need not be checked.

4. That nothing which is not strictly in answer to the questions proposed will be examinea or marked for.

5. That the questions should be answered in the order in which they are given.

7. Write the following transactions into the books provided, putting all-Goods sold into the Day Book.

1857.

Goods bought into the Invoice Book.

Transactions involving Cash}

or Discount

July 1. Cash in hand

Bought of Jones and Son 40 bags cotton, 13,728 lbs.
at 4ğd.

into the Cash Book.

7. Sold J. Smithson 10 bags cotton, 7,368 lbs. at 6d.

184 4 0

9. Sold Beale and Co. 6 bales Surat, 2,102 lbs. 3 d.

10. Sold John Parker 12 bags cotton, 3,102 lbs. at 4åd.

11 0 0

14. Sold James Westhead 18 bags cotton, 3,258 lbs. at 5d.

6

19. Sold Holroyd and Swindells 3 bales Surat, 1,043 lbs.

at 23d.

22. Paid Peak and Co.

Cash
Allowed

31. Paid wages, &c. to date

67 17

11 18 11

17 10 0

· 0 1 5

17 11 5

11 7 3

8. Post the same transactions from the books given above into the Ledger

in the manner called "Single Entry."

9. Which side of a Cash Book is always the greatest?

10. Name the additional Ledger accounts which would be necessary if the transactions recited above were to be recorded by Double Entry.

11. Describe the process of balancing and closing a set of books kept by

Double Entry.

12. What errors are not checked by balancing the Ledger, and how are they guarded against in practice?

13. At the beginning of a year a set of books is re-opened, and there are balances of the following accounts:Merchandise, Bills payable, Bills receivable, Furniture

and Cash

On which side of the Ledger will each be put?

14. Give the Journal entries which would be necessary to record the last three transactions given above (under question 7).

15. Give the Journal entries which would be made by Holroyd and Swindells and by Peak and Co. for their parts of the same transactions,

BOOK-KEEPING BY DOUBLE ENTRY.

For the ADMIRALTY AT SOMERSET HOUSE, OFFICE OF WORKS, &c.

1. What is book-keeping by Double Entry, and what is book-keeping by Single Entry?

2. What books should (in your opinion) be used in book-keeping by Double Entry?

3. (a) Which of the books you have named is indispensable in any system of book-keeping?

(b) Are any others necessary to book-keeping by Double Entry, and which?

(c) If any of those you have named as proper to be used in Double Entry book-keeping can be avoided, show how it can be done.

4. At the end of a year a merchant balances his Ledger:

(a) Describe the process.

(b) What errors would not be checked by balancing the Ledger, and how are they guarded against in practice?

5. Has book-keeping by Double Entry any superiority over Book-keeping by Single Entry, except the check it gives on the accuracy of the Ledger postings?

6. How should the following accounts be closed?—

(a) Merchandise.

Profit and loss.

Cash.

Private expenses.

7. At the present time the following is a correct statement of John Smith's position: He has a house worth 550l., furniture and fixtures worth 2501., a horse and cart worth 60/, various goods to the value of 9707., . and debts due to him from A. Jones 50l., B. Wing 60l., and G. Brown 757., he has besides 321 7s. 4d. in cash, but he owes to James Thompson 491., to G. Jack 1277., and to W. Craven 6947.

Rule a sheet of paper to serve as a Ledger, and make all the entries which Smith's Ledger should have in it to show his position to be as above stated.