GO FARM ACCOUNTING 



Oct. 1, Spent 50 cents at church. 



Oct. 2, Receive.! .*.5f) from home. 



Oct. 3, Paid $10 for neckties, shirts, socks and a hat (charge 

 'laundry and toilet"). 



Oct. 3, Paid two weeks' board $9. 



Oct. 3, Took "Slim" and "Zeke" to a show, spending $1.50. 



Oct. 4, Paid $2 for books and stationery. 



Oct. 6, Paid 50 cents for hair cut and shave, 10 cents for 

 shine, and $1 for pressing suit. 



Oct. 6, Attended a dance with Ethel and spent -fJ.40, includ- 

 ing refreshments and car fare. 



Oct. 9, Spent $.'{.50 while home with "Zeke" over the week-end. 



Oct. 10, Received a letter from home savin : they would >end 

 me $30 the first of next week. 



Oct. 10, Borrowed $5 from "Zeke" Sanborn. 



Oct. 13, Paid $4 for a pair of shoes. 



Oct. 14, Took Kthel to the football game, spending $1.70. 



Oct. 16, Received a check from home for -i 



Oct. 17, Paid "Slim" and "Zeke" each the $5 I owed them. 



(a) Close the expense and income accounts into Loss and 

 (lain, and the latter into the Capital account, bringing down the 

 balance of the latter. 



(b) Prepare a Statement of Resources and Liabilities as of 

 October 17, 1916. 



REVIEW QUESTIONS 



1. What two general bookkeeping methods are there for show- 



ing increases and decreases in capital? 



2. Which one is more often used in practice t 



::. Which one involves the use of the greater number of accounts? 



4. When all increases and decreases of capital are recorded in 



one account, how is the net capital of the business deter- 

 mined at the close of the year? 



5. When increases and decreases of capital are recorded in 



several appropriately named accounts how is the net capi- 

 tal of the business determined? 



