No. 23.
667
BOOK-KEEPING.
CLASS I.
1. What is the difference between a Bill of Exchange and a Promissory Note? Make out (1) a Bill of Exchange (2) a Promissory Note between F. Smith and D. Jones for a transaction to the value of £100. Explain when and how the money is paid in each case.
2. Journalise and post in the Ledger the following:-
Sept. 1 Jas. Murray began business with a capital of
£700 in bank,
"
"
55
4 Bought goods of W. Jones,........ 210
45
7
13
14
9
of J. Philip,
Sold goods to R. Carpenter,
for cash,
27
Paid wages by cheque,.
Bought goods for cash,
£ S. d.
210 6 9
54
8 7
94 5
48 9 1
24 0 0
23 2 6
10 10
0
94
5
U
18
10
0
0
29
21
Accepted W. Jones' Draft at 1
month,
150 0 0
30
"
Paid rent by cheque,
15 10 0
A
A
Paid
expenses
in cash,
16 Sent a draft to R. Carpenter at 2
months which he accepted,
Drow for private use by cheque,
1: "
3. If the stock-in-hand in the last question is valued at £243 at the end of the month, prepare the Profit and Loss Account and the
Balance Sheet.
4. T. Smith of Hongkong, merchant, exported goods costing $1,200 per S.S. Harkaway to X. Caspar of Guam. Freight was paid at destination, but cost of Bill of Lading, Stamps, etc., was 40 cents, Marine Insurance charges were $2.40 and he made 5 per cent. com- mission on the cost. He drew a draft at sight on the consignee for the total amount.
Make the two entries in T. Smith's journal which are necessary to explain the transaction. The accounts concerned in his ledger are :—
X. Caspar Account.
Export Account.
Trade Charges Account.
Marine Insurance Account.
Commission Account.
Bills Receivable Account.
5. Briefly explain the following terms as used in connection with cheques :-
"endorsed", "dishonoured", "not negotiable", "refer
to drawer", "forged”.
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