BOOKS OF ORIGINAL ENTRY 115 



In comparing the several amounts on the check stubs with 

 the bank pass book, it is found that the three deposits of $980, 

 $185 and $183.33 correspond exactly with the deposits shown in 

 the bank pass book for the three months. 



The checks returned by the bank are sorted out in numerical 

 order and are found to bear the following numbers and amounts : 



Check No. Amount 



198 $25.00 



202 37.19 



203 85.00 



204 20.00 



205 30.16 



206 540.00 



207 93.19 



The pass book balance is $1369.48 on Dec. 31, 1917. 



(a) Prepare a statement verifying the cash balance as cal- 

 culated from the cash journal figures of Dec. 31, 1917. (There 

 is a small amount which he cannot account for. Perhaps he 

 lost it.) 



(b) Prepare a bank reconciliation statement as of Dec. 31, 

 1917. 



(c) Explain any differences or irregularities arising in the 

 statements prepared under (a) and (b) above. 



(d) Indicate, in the proper ways, all corrections necessary to 

 make A. E. Long's books and records correct and ready for 

 further transactions. 



REVIEW QUESTIONS 



1. If only one book of record were to be used what one would 



it be? 



2. If only one book of original entry were to be used what one 



would it be? 



3. Name five reasons for not using the ledger alone, in com- 



mercial accounting. 



4. To what extent do these reasons apply to farm accounting? 



