724 THE HOMi:. FAKM AND BUSINESS CYCLOPAEDIA. 



Ex. 516. It is the end of the week, and we pay our employes the 

 amount due to each. (See latter part of paragraph 336.) Posted to 



Ex. 517. We purchase five bank shares of the Union Trust Co. stock. 

 We buy these because we have money to spare, and think it a good in- 

 vestment as this bank declares a semi-annual dividend to its shareholders, 

 the per cent, of which amounts to more than our money would bring if 

 put out on interest. When we receive cash on a dividend we open a 

 " Union Trust Co. Dividend " account, and credit that account for the 

 amount of the dividend; which "Dividend" account is closed at the end 

 of the year and the amount carried to the Loss & Gain account as a Gain. 

 Posted to 676. 



Ex. 518. We have a sign made to put up over our door. Some book- 

 keepers erroneously charge this to Store Fixtures account. Nothing 

 should be charged to Store Fixtures account except such articles as would 

 be of value to others. 



Ex. 519. We buy potatoes from a farmer and pay cash therefor. 

 Everything we buy for the purpose of selling again, we debit to Merchan- 

 dise account. Posted to 585. 



Ex. 520. We pay for freight and drayage, also for express on a box of 

 goods. (See 205.) A separate account is sometimes kept for Drayage, 

 but in this set it is carried into the Freight and Express account. Posted 

 to 649. 



Ex. 521. We go to the bank and buy a draft (bank draft) on New 

 York and send it to the Toronto Tobacco Co. (See 179.) Posted to 747. 



Ex. 522. Same as 516. (See 201 and 203.) Posted to 653. In a 

 store where there are but few employe's it is not necessary to write the 

 initials when making the entry. 



Ex. 523. The bank charges us 25 cents for collecting our sight draft 

 on F. H. Miller. (See 492 and 209.) Posted to 669. 



Ex. 524 and 525. The time draft which Arbuckle Bros, drew on Good- 

 win Nov. 13th, and was by him accepted, is now due, and is sent by them 

 through the bank for collection. The bank presents it to us for payment, 

 and we pay it, together with 65 cents exchange and collection charges. 

 (See 361 and 134.) Posted to 629 and 670. 



Ex. 526. We pay for circulars, and for advertisement in Mail, de- 

 siring to know how much is expended during the year for advertising, we 

 keep an Advertising account and charge the amount to that account. 

 Posted to 674. 



Ex. 527 and 528. Baker & Co., of New York, draw on us "at sight," 

 on Dec. 13th, for the amount of their account, the draft reaches us on the 



