BOOK-KliHIMNO FOR I'WtMKK- 



'.'17 



The following example will illustrate the method of dealing with the 

 second year's transactions : — 



During the following year, 1921, J. Bull sells horses for £60, and buys 

 stock from James for £100. He pays the Sydney Plough Company £48, 

 being allowed £2 discount, and aceepts £195 from James in full settlement 

 of his account. He buys seed for £5, sells hay for £75 and dairy produce 

 for £30, and pays £100 for house expenses. Wages paid total £90. 

 Interest is charged on capital at 5 per cent, per annum. At end of year ho 

 owes rent £40, that for the first half-year, £40, having been paid. 



Valuations at the end of the year are, stock £560, crops £120, dairy 

 produce on hand £5. Plant and horses are depreciated at rate of 10 per 

 •cent, per annum. 



The journal and ledger will appear as under: — 



Cr. 



Ledge r 

 Folio. 



1921. 



Bank, Dr. 



To Horse 

 Stock, Dr. 



To James 

 Sydney Plough Co., Dr. 



To Bank 



,, Discount 

 Bank, Dr 

 Discount, Dr. 



To James 

 Crops, Dr. 



To Banc 

 Bank. Dr. 



To Crops 

 Bank, Dr. 



To Dairy 

 House Expenses, Dr. 



To Bank... 

 Wages, Dr. 



To Bank... 

 Interest, Dr. 



To Capital 

 Rent, Dr 



To Bank... 



To Landlord 



13 

 2 



13 

 8 

 6 

 2 

 •2 

 6 

 2 

 7 



14 

 2 



10 

 2 



12 

 1 



11 

 2 



15 



195 It 



.-> 



5 



75 



30 



100 



90 



57 10 



SO 



48 

 2 



2C0 



5 



75 



30 



lot) 



90 



57 10 



40 



40 



£847 10 



£847 10 



1921. 



To Profit and Loss 

 ,, Balance cfd ... 



1922. 



1921. 



To Balance b/d 



,, Horses 



,, James ... 



,, Crops ... 



,, Dairy ... 



1922. 



To Balance b d 



1 . Capital. 

 £ s. d. 



17 10 By Balance b/d. 



1,190 ,, Interest 



£1,207 10 



By Balance b/d. 

 2. Bank. 



3*50 



60 



195 



75 



30 



£720 



437 



By Sydney Plough Co. 

 ,, Crops ... 

 ,, House Expenses 

 ,. Wages ... 

 ,, Rent 

 ,, Balance c'd ... 



£ s. d. 



1,150 



57 10 



£1,207 10 



. 1,190 



48 



5 



100 



90 



40 



437 



£720 



