These Papers contain easy questions intermixed with others of greater difficulty. The object has been to enable candidates moderately acquainted with the subjects to show sufficient knowledge, and at the same time to afford an opportunity for the display of better acquaintance with the subjects where it has been acquired. 3. Which side of a Cash Book is always the greatest? 4. Name the additional Ledger accounts which would be necessary if the transactions recited above were to be recorded by Double Entry. 5. Describe the process of balancing and closing a set of books kept by Double Entry. 6. What errors are not checked by balancing the Ledger, and how are they guarded against in practice? 7. At the beginning of a year a set of books is re-opened, and there are balances of the following accounts :— Merchandise, and Cash On which side of the Ledger will each be put ? 8. Give the Journal entries which would be necessary to record the last three transactions given above (under question 1). 9. Give the Journal entries which would be made by Holroyd and Swindells and by Peak and Co. for their parts of the same transactions. SPECIMENS OF EXAMINATION-PAPERS IN THE PRINCIPLES OF BOOK- Set to candidates for the Admiralty at Somerset House, Office of 1. What is Book-keeping by Double Entry, and what Book-keeping by Single Entry? 2. What books should (in your opinion) be used in Book-keeping by Double Entry? 3. (a) Which of the books you have named is indispensable in any system of book-keeping? (b) Are any others necessary to book-keeping by Double Entry, and which? (c) If any of those you have named as proper to be used in Double Entry Book-keeping can be avoided, shew how it can be done. 4. At the end of a year a merchant balances his ledger : (a) Describe the process. (b) What errors would not be checked by balancing the ledger, and how are they guarded against in practice? 5. Has Book-keeping by Double Entry any superiority over Bookkeeping by Single Entry, except the check it gives on the accuracy of the ledger postings? 6. How should the following accounts be closed ?— (a) Merchandise. (b) Profit and loss. (c) Cash. (d) Private expenses. These Papers contain easy questions intermixed with others of greater difficulty. The object has been to enable candidates moderately acquainted with the subjects to show sufficient knowledge, and at the same time to afford an opportunity for the display of better acquaintance with the subjects where it has been acquired. 7. At the present time the following is a correct statement of John Smith's position :-He has a house worth 550l., furniture and fixtures worth 2501,, a horse and cart worth 601., various goods to the value of 970l., and debts due to him from A. Jones 50l., B. Wing 604., and G. Brown 751.; he has besides 321. 7s. 4d. in cash, but he owes to James Thompson 491., to G. Jack 1277., and to W. Craven 6941. Rule a sheet of paper to serve as a ledger, and make all the entries which Smith's ledger should have in it to shew his position to be as above stated. pays me 8. I buy wine of A. for 5Cl., and sell it to B. for 551. ; B. in a bill for 251. and cash for 307., and I then pay A. on account. Give the journal entries A. would make for these transactions, and also those of B. (Rule paper in the proper journal form to make the above entries on.) 9. On the 1st December I had the following transactions: Rule a Cash-book, and enter in it as many of these facts as you can. No. 2. 1. Supposing a Journal to be used, give the Journal entries for the following transaction :— "Sold to B. 1 pipe Port, 501., and took his bill at two months for the amount." 2. I buy Sherry of James Smith for 50l., and sell it to B. for 55l., B. pays me in a bill for 257., and cash for 307., and I then pay to James Smith B.'s acceptance and cash for the balance, he allowing me 2 per cent. on the whole amount. Give the Journal entries which would be necessary for recording these transactions in my books. 3. Give the Journal entries which James Smith would make for his part of the same transaction, and also those of B. These Papers contain easy questions intermixed with others of greater difficulty. The object has been to enable candidates moderately acquainted with the subjects to show sufficient knowledge, and at the same time to afford an opportunity for the display of better acquaintance with the subjects where it has been acquired. 4. How should the following accounts be closed :— 1. Merchandise. 2. Cash. 3. Profit and loss. 4. Petty expenses. 5. Describe the process of balancing. What errors are not checked by it, and how are they guarded against in practice? 6. A set of books is kept by Single Entry, and the books used are, 1. Day Book or Sales' Book. 2. Cash Book. 3. Bill Book. 4. Ledger. Show how this set of books could, at the end of a year, be changed to Double Entry, without making any fresh ones. N.B. The following should not be attempted till all you can do of the preceding has been completed. B. Copy the following transactions into either, 1856. 1. A Sales' Book or Day Book, a Cash Book, and an Invoice Book, or 2. (In the case of your not being able to do so) into any books that you consider would do in their stead. In each case you must rule paper for yourself. £ S. d. 125 10 0 24 0 0 84 0 0 10 doz. Rudesheimer, 59s. 29 10 0 Sold Benj. Smith: 3 doz. Sauterne, 45s. 4 doz. Rudesheimer, 75s. These Papers contain easy questions intermixed with others of greater difficulty. The object has been to enable candidates moderately acquainted with the subjects to show sufficient knowledge, and at the same time to afford an opportunity for the display of better acquaintance with the subjects where it has been acquired. £ s. d. July 20. Accepted draft of J. Edwards & Son, at 2 months 108 0 0 1856. Candidates should confine their remarks to the answering of the questions proposed: anything stated beyond this will not be examined. : 1. Rule a Cash Book and enter in it the following transactions :1857. Jan. 7. Cash in hand 9. Paid J. Smith 10. Received of B. Brown 10. Paid into Heywood and Co's. 11. Received of J. Jones £ s. d. 525 11 7 4 5 0 14 7 5 500 0 0 123 4 0 2. Rule a Ledger and enter in it the transactions given in 1. 3. What is a "Ledger Account," a "Ledger Folio," a "Ledger Balance," and the "Balance of an Account"? And what is Posting "? 4. What is Book-keeping by Double Entry? State briefly in what it differs from Book-keeping by Single Entry, and what advantages it has over it. 5. In Double Entry what does "Balancing the Ledger" mean? and what is the difference between a "Trial Balance" and a "Balance Sheet"? What sort of errors are not detected by balancing? These Papers contain easy questions intermixed with others of greater difficulty. The object has been to enable candidates moderately acquainted with the subjects to show sufficient knowledge, and at the same time to afford an opportunity for the display of better acquaintance with the subjects where it has been acquired. 6. There are certain accounts kept in Double Entry which are called variously "Real," "Fictitious," "General," "Non-personal," "Impersonal," &c. Give a list of the accounts of this nature which would be used in an ordinary mercantile counting-house, and if you would apply any of the terms above to only a part of the accounts in question, distinguish that part. 7. How should Profit and Loss a/c and Merchandise a/c be closed? 8. J. S. buys sugar of B. W. for 551. Give the Journal entry that J. S. makes, and also that of B. W. 9. In a certain business it is necessary to keep a separate account of— (a) Discounts. (b) Commissions. Insurances. (d) Petty Expenses. Salaries. How should this be done? How with your alterations for this purpose introduced into the books would you proceed at balancing? 10. R. H. Read pays 4971. 12s. 6d. at the Bank of England to the account of James Macintosh, and advises him (i.e. Macintosh) that he has done so by the orders and on behalf of J. Robb and R. Steele, viz., on a/c of the first 501., and on a/c of Steele 4471. 12s. 6d. Give the Journal entries for these transactions(a) Of R. H. Read. (b) Of the Bank of England. (c) Of James Macintosh. (e) Of R. Steele. 11. John Smith of London buys goods of William Brown and Co. of Manchester, and at the end of the year shows the following accounts and balances in his ledger :-Drs. A. 25l., B. 20l., C. 6l., D. 37. 10s., E. 427., Cash 327. 10s. Crs. Brown and Co. 851. 7s. 6d., Stock 431. 12s. 6d. W. Brown and Co. on an examination agree to take the risk of the outstanding debts upon themselves, and to appoint J. Smith their London agent to receive a commission on all his subsequent sales. The same books are to be kept :-state what alterations would be necessary to make them serve for the new state of things. No. 4. (Time allowed, 3 hours.) Note.-Nothing which is not strictly in answer to the questions proposed will be examined or marked for. 1. Why is Book-keeping by Double Entry so called? 2. What advantages has Book-keeping by Double Entry over any other system? |