13.
15-
? Prere
A.
The $432,000.00?.
The loan was $432,000.00.
What is the repayment?,
$405,000.00 on the 28th of April. (Ex. O Folio 3). That did not go through the cash book, and properly it should have gone?.
Yes, my Lord.
Re Cross-examined by ir. Brewer.
32
A.
4.
DEDE
A.
A.
will you tell us what the entry is?.
The first entry shows that on the 28th April, $405,000.00 was cash which was applied against Head Office Loans.
It was a cash payment?.
It was a cash payment according to the Journal. Is it permissible for a bookkeeper to put it through the Journal?.
No, if he did not put it through the cash book the entry would be wrong. 465,000.00 cash was re- ceived and on the same day it was paid away to the Instone Trading Company.
It would not have any effect on the cash book?. No, in this case it would not have any effect on the cash book.
His Lordship: Mr. Fitzroys
The point is that there was no cash?.
What occurred is a cross entry, they purported to buy $405,000.00 worth of shares in the Instone Trading Company, and all that happens is merely another cross entry.
BY COURT.
A.
??
A.
A.
1.
Lir. Brewer has made two points. The first is that the particulars appearing in the certificate agree with the books as stated by the Company. And on that you agree, assuming that the books are correct, this is a fair statement of the affairs in the books. You agree?.
Yes.
The second point is that he has cash calls paid in advance $775,950.00. It is agreed that they really appear in the books of the firm in the form of loans. There is no doubt about that. He wishes you to say that so far as these loans abe concerned, they have been marked off paid by cash payments since the making of this certifi
cate. Yes.
It appears that between 1927 and 1928 there was in the balance sheet a reduction in the loan account from $761,100.00 to $349,000.00 or thereabouts, that is to say that there is a difference by re- duction of $410,000.00. Mr. Brewer puts it to you that difference was paid in cash to the firm in respect of their outstanding loand. Your point is that the greater part of that sum is an item $405,000.00 and that appears in the books on the 28th April, and as far as that same $405,000.00 is concerned, it has not gone through the cash book. It has gone through the journal and appears to be a cross entry from one account to another. The journal says quite clearly that cash was re- ceived from -rs. Brewer Head Office Loans and was paid to the Instone Trading Co. They received cash from one person and paid it to another on the same day.