(g) Four lines below or at the top of the next page of the ledger write Purchases.

(h) How many times does the item Purchases appear on the right side of the cashbook?

Count twelve lines below Purchases or at the top of the next page write Initial Expense.

(i) How many items in the cashbook are initial expenses; that is, expenses one has only at the beginning of the business?

Leave fourteen lines below Initial Expense for these items.

On the fifteenth line write Gas.

(j) How many times does Gas appear in the cashbook?

In the middle of the fifth line below Gas write

Electric Light.

(k) In the middle of the fourth or fifth line below Electric Light write Supplies.

(1) On the fourth or fifth line below Supplies write Advertising.

(m) On the fourth or fifth line below Advertising or on the next page write Salaries.

3. Transferring items as classified from the cashbook to the ledger

(a) With all these headings in the ledger, we are now ready to transfer every item from each side of the cashbook to the ledger under the proper heading.

When an item is transferred from the cashbook
to the ledger, we say it has been posted. The
transfer is called posting.

(b) Every item on the left side of the cashbook is
posted on the right side of the ledger page.
(c) Every item on the right side of the cashbook is
posted on the left side of the ledger.

(d) (1) What is the first item in the cashbook under Cash Receipts?

(2) What is the most important part of that item? (3) Keep this number 3500 in mind till you find the place in the ledger, where E. W. Williams, Capital is written.

(4) In the money column on the right side of the
page write 3500.

(5) Now look back at the cashbook to find the
date of this entry, and put May 1
1919 in the

date column on the same side of the ledger
on which 3500 was written.

(6) From what page of the cashbook was this item taken?

In the ledger, write the number of this page in the column just to the left of 3500 in the money column.

To the left of the page number just outside the column write C. This C stands for cashbook. With the number, it shows that the item has been posted from a certain page of the cashbook.

(7) On what page of the ledger did you post this item?

In the cashbook there is a column marked L. F. in which this ledger page is to be recorded.

L. F. means ledger folio.

In the cashbook, just after the date column and in front of E. W. Williams, Investment, write the number of this ledger page.

(8) What is the next item on the left, or cash receipts, side of the cashbook?

On the right side of the ledger under Sales write 171.50 first.

(9) In the proper column write the date of this sale.

(10) In the ledger write the cashbook page.

(11) Write C to the left of the cashbook page.
(12) In the cashbook write the number of the

ledger page.