Bookkeeping And Accounting

Cover Bookkeeping And Accounting
Bookkeeping And Accounting
Joseph Jerome Klein
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Transposing we get: A = L+P.
Interpreting the last equation, we readily see that the asset colunm of the Working Sheet should equal the sum of the Uabilities and the proprietorship (net investment plus net profit or minus net loss), and that for bookkeeping purposes the proprietor's balance may be regarded as a liability in analyzing the meaning of the Ledger balances, though it would be incorrect to do so in preparing the Balance Sheet.
Questions 1. Differentiate between elementary, intermedia
...te and advanced book- keeping.
2. Suggest three special columns for the debit side of the Cash Book.
3. Suggest three special columns for the credit side of the Cash Book.
4. Suggest the titles of the special columns of a Sales Book which would be adapted to the use of a drug store.
5. Suggest the special columns in the Purchase Book which would, in your opinion, answer the requirements of a department store.
ADVANCED BOOKKEEPING 223 6. Justify the use of the term " Accounts Receivable " as a controlling account.


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