SPECIAL ACCOUNTS AND ENTRIES 



207 



(i) If the partnership is not to be renewed, and Fred Ander- 

 son withdraws, how might settlement be effected? Show the 

 entry in simple journal form that would be required to record 

 the withdrawal of Fred Anderson. 



3. Mr. L. E. Fay, who has been farming for several years as a 

 tenant, decides to keep accounts of his transactions. Accordingly, 

 he arranges to use a cash journal and ledger, beginning with his 

 new lease, on Jan. 1, 1916. The following columns are to be 

 used in the Cash Journal in the order named: 



Debit: Labor, Roy Wade, Household, Cash, Sundry. 



Credit: Sundry, Cash, Household, Roy Wade, Poultry and 

 Cattle. 



He valued his possessions and prepared a Statement of Re- 

 sources and Liabilities, as follows: 



STATEMENT OF RESOURCES AND LIABILITIES, JAN. 1, 1916. L. E. FAY 



Resources 



Cash $800 



Household Furnishings . . 500 



B. E. Adams 60 



Notes Receivable (At- 



wood) 200 



Horses 800 



Cattle 600 



Hogs 350 



Sheep 150 



Poultry 30 



Bran, shorts, etc. (Dr. 



Mill feed) 40 



Corn 500 



Oats 100 



Wheat 250 



Hay 200 



Equipment 1,000 



Liabilities 



Watt. Hdw. Co $150 



Mortgage Payable 2,000 



L. E. Fay, Capital 3,430 



$5,580 



$5,580 



