12 Deposit cash $250. (In most cases, the pupils have by this time formed a bank and keep its affairs in as much detail as possible.) June 15 Give check to Bookkeeper for week's salary $15 Pay delivery boy cash $3 Pay woman for cleaning $1.50. "15 Cash sales for day $150 "15 on acct. L. Baker $15 J. Brown, $18. T. Lynch $25 (use student's names.) "18 Send check to Blank & Co. $75 to apply on acct. carried much further in 9th year as preparatory work for illustrative Bookkeeping. The firm or corporation of students, as proprietors of store, hire students as clerks and bookkeepers. Outline the duties of the bookkeeper when you engage him. Discuss freely with pupils what they are to do in the store, such as: Buy and sell goods. Make change. Make deposits, take care of check book, meet customers, and agents, answer telephone, act as company representative. DRILL 43 Following the preceding suggested transactions. First Lesson, (Transactions to be announced by teacher-entries made by pupil after discussion of each transaction.) Power of Attorney Explain necessity, show printed form, discuss the advantages and need-how long it will be in force, etc., the proprietor's trust in the integrity of his bookkeeper, need of confidence, etc. File in suitable envelope the power of attorney. Trans. No. 1. Next make entry in Journal, supposing the company has just bought the business. Discuss entry, compare it with entry of a business just started, supposing this to be a "Going" business. In the latter case, "22 Give bookkeeper check for the assets accts. in the ledger must week's salary $15. "24 Purchase mdse. (selected) from Blank & Co. on acct. $300. show balances, which may be inserted by using a balance sheet. Assume it to have been a strictly cash business up to present time, (as per This work of Bookkeeping may be sonal accounts have not been de veloped. Also, Liabilities have not been used up to the present time) or make the purchase of Stock, Furniture and Fixtures, etc., as transactions of this month's business. The latter plan would be a better one. Trans. No. 2. Entry in Journal of Investment of proprietors. Discuss business occur rences. Increased asset of cash, increased proprietorship. Have principles governing these entries given, develop proper explanation of the entry. Trans. 3. Discuss business occurrences. Increased mdse. asset., decreased cash asset, etc. Trans. 4. Proceed as in Transaction No. 3. Trans. 5. When hiring a bookkeeper outline his duties as suggested in "Power of Attorney." DRILL 44 Opening Bank Account Review drill 43 as basis. Open a bank account, use following steps: Trans. 1. Determine the bank you wish to do business with. Trans. 2. Determine what you wish to deposit. Trans. 3. Go to bank with someone to introduce you. (Develop all this by real action of students using appropriate conversation.) Trans. 4. Arrange with bank official to open a checking account. Trans. 5. Receive Bank book, check book. Trans. 6. Make out deposit slip. Enter transactions as outlined in Drill 42. Nothing new is given until the last [4th] transaction on the 3rd day. Enter in Rent Payable account. Teach use of back stub of front stub,-detach first 2 checks of check book and turn stub over. The deposit has already been recorded on the back stub. Make out the front stub before check is written, giving full information. Make out check, what disposition is made of it, (use envelope for other's vouchers.) If check book contains more than one check on a page do not teach deduction and forwardng until all checks on that page have been writ DRILL 46 Developing Transactions Review previous drills. First transaction on 4th day needs Model Store Department no new development. (See Drill 42.) Purchase on account. Review cash purchase. Develop liability (something owed or a right against our business) contrast and compare it with an asset. This being the first liability transaction, proceed slowly, and discuss freely and fully. Develop rules for Dr. and Cr. of Liability accounts. Make entry. Next 3 transactions need no new explanation. DRILL 47 Developing transactions Review previous drills. 7th day. This transaction would be much more real if sale is actually made to some outside pupil-perhaps of another grade. Recall definition of asset, (something owned or a right against another person) discuss this transaction of selling on account, what business, occurrences, etc. Make entry, Entry for cash sales. 8th day. Make entry for bookkeeper's salary-may now charge "office salaries" as pupil can easily comprehend this account. Make out stub, draw check, pupil keeps check (and preserves it). Teach deduction of the total of checks. Balance forward on next back stub, etc. No new idea until 9th day. DRILL 48 Developing transactions Review as before, and proceed. Review account sales, oral or understood promise, show the shifting of the Liability from Blank & Co.'s acct., to that of a written promise acct., review advantages of written promises, allow free discussion, (use. of "T" accounts). Make entry. DRILL 49 Developing transactions Next entry (check to apply on account) study carefully. Discuss part payments, payments by check, etc., asset shifted from Accounts-Receivable to Cash, etc. Make entry, check placed in cash drawer or safe. Nothing new until the 11th day but all these transactions should be discussed, before entry is made. Have sales actually transacted between students. DRILL 50 Developing transactions Review, and continue to use papers with sales slips accumulating from "fundamentals practice purchases." 11th day. Review oral and written promises, discuss transactions, advantage of written promise, effect upon business of shifting of an asset. Entry for day's Transaction. Use of "T" accounts. 12th day. Recall other deposit, following as closely as possible the steps given for that. Enter in Bank Book, Check Book, etc., discuss effect on business, why no entry is necessary, etc. Blank & Co. 150 150 C 150 150 150 D Cash 1150 ing take a trial balance. Next have an inventory taken. The teacher should work out the transaction beforehand in order to have the inventory produce a profit or loss as desired. By means of the data from the mdse. account and the present inventory prepare the trading section Notes Receivable Cash 501 Discuss transaction, make entry. of the income and Profit and Loss Nothing new until 21st day. DRILL 52 Closing the Books Review as before. Depositing checks-new. Show indorsement of checks, different forms, uses, etc., this is "for deposit." Make deposit slip. Listing checks separately, and giving statement. Next, by means of Journal entries, close the Mdse. acct., compare the Profit thus shown with the gross profit of the Income Profit and Loss statement. Through the journal, complete closing the Ledger, complete Income Profit and Loss statement. Make balance sheet, take post-closing trial balance. This closes the books and opens them for the coming period. Special Correspondence Courses in Bookkeeping and Business Practice (All rights reserved) By FRANK MACDONALD, Chief of Staff, The Audit and System Bureau of New York Owing to the illness of Mr. Macdonald this department is of necessity omitted this month. Those who have been following the department will find much of interest in the Model-Store-Keeping Department of this issue which is devoted to bookkeeping instruction. Department of School Board Members These are only two of many outstanding factors which prove to us that the education of American youth and of foreigners now being absorbed in the great American melting pot, is one of the prime factors in making the world safe for democracy. President Wilson has directly pointed out to high school students their patriotic duty to complete their course of education and make themselves useful citizens for the upbuilding of the world and the great reconstruction. That it was not directed to elementary grade school children was solely due to their youth preventing the contemplation of active service. But the message is as much to them in effect and it therefore becomes the duty of the School Board Members in every community throughout the land to see that this education is provided. With the increasing costs of all materials required by schools and |