4. From $20 in each case, count the change for the sum of the

two purchases:

$4.55 $3.96 $7.22 $8.45 $3.95 $9.09 $7.32 $1.65 9.20 6.30 4.75 3.32 5.00 6.40 3.95 5.22

5. From $50 in each case, count the change for the sum of the two purchases

6. Assuming that $100 is offered by the customer in each case, count the change for a purchase which costs:

$37.25 $41.53 $35.68 $54.75 $78.12 $81.19 $43.62 $28.35 $67.31 $36.45 $41.70 $81.54 $73.22 $29.44

Horizontal subtraction. A great saving of time on some business forms is effected by the use of horizontal, or line, subtraction.

For example, on a bill an expression in the form 335-32 is often used. The first number indicates the gross weight, that is, the weight of the goods and the box or container; the second number indicates the tare, or the weight of the container alone. The net weight, that is, the weight of the goods alone, may be found more quickly by horizontal subtraction.

Or on a bank form it might appear that a depositor's balance, on a given date, was $385, and to the right of this amount the sum of the checks he had drawn might appear as $133. To find the balance on deposit quickly would require line subtraction.

ORAL EXERCISES

State quickly the net weight in each of the following:

EXERCISES

Find the balance on deposit in each of the following:

SUBTRACTION APPLIED TO BUSINESS PROBLEMS

The depositors' ledger. In banks that receive deposits against which checks may be drawn a form of record, called the depositors' ledger, is used as a means of keeping a statement of each depositor's account. Such a record shows the opening balance (the amount the depositor has to his credit at the beginning of the period), the deposits made, the checks paid, and the closing balance. If A, B, C, and D have accounts at a bank, the depositors' ledger might appear as follows:

In finding the closing balance for each depositor the deposits are added to the opening balance and then the checks are subtracted. The results are set down in the column headed "Closing Balance," as shown by the black figures.

After all the closing balances have been figured, a page of the ledger may be checked by adding each one of the four columns and seeing if the sum of the opening balances plus the sum of the deposits minus the sum of the checks equals the sum of the closing balances, as shown above by the column totals in black type.

Ledger accounts. One of the important things in a business concern is keeping the records of amounts owed to the firm and of amounts which the firm owes. A debit is a record of money or other value received by the firm and a credit is a record of values parted with. A ledger account is a collection of related debits and credits which is kept in a record book called a ledger. In a simple form of bookkeeping one of the ledger accounts is the Cash account, which summarizes the transactions of the firm in which money has been received or spent, as shown below:

In the above account the first item, $368.74, represents a sum received, and by custom all such items are entered on the left side. Together these items constitute the debits of the account. The first item, $217.40, in the right-hand column represents money paid out, and together all the items on the right side constitute the credits of the account. In addition, the account records the dates of the items and the pages of the other record books where these items were first listed.

The balance of an account is the difference between the sum of the debits and the sum of the credits. After this difference

is found the balance is entered in its proper column, depending upon whether the debits or the credits is the greater, the page is ruled, and the balance is carried below the rulings, as shown in the model form. Balances are usually entered in red ink above the rulings.

CASH

102.20

51.10

38.45

20.00

T account. The illustration at the right is

33.70

51.20

called a skeleton ledger

40.00

account, or a T account. In

such an account only the

Balance 174.80

amounts are entered; the

other details of a ledger account, the date and the page columns, are omitted. In the work in the following exercises this T-account form should be used.

EXERCISES

Prepare T accounts from the following data. Balance and rule each account:

1. Cash received (debits): $140.20, $230.50, $48.75, $35.95, $67.80, $33.40, $89.60, $55.50, $75.95. Cash paid (credits): $70.10, $200, $51.40, $75.30, $25.

2. Cash received (debits): $89.54, $37.55, $114.25, $17.45, $49.62, $11.78, $57.50, $28.75, $93.22. Cash paid (credits): $75, $25.45, $100, $51.50, $15, $38.75.

Personal accounts. The accounts which record the transactions that a firm has with individuals or other firms constitute another type of ledger accounts. Such accounts are called personal

accounts.

For example, suppose that Student, as the proprietor of a business, sold merchandise to A. M. Benton, on account, as follows: March 3, $186; March 8, $68.45; March 11, $156.20; March 13, $121; March 19, $175; March 27, $206; March 31, $110.40.

Suppose also that A. M. Benton paid cash, on account, as follows: March 12, $186; March 15, $68.45; March 20, $156.20; March 22, $121; March 29, $175.