2. (a) Put these transactions in the cashbook. (b) Balance the cashbook. (c) Post in the ledger. (d) Take off a trial balance. Notice that the initial expenses must be included in this trial balance as well as in that of the first month. Why? (e) Make a profit and loss statement. (f) Find what per cent of the total sales his total expenses are. (g) What per cent of the total sales is his net profit? (h) Since the trial balance and the profit and loss statement for the second month's business are slightly different, the models for these are given. Use them as a check upon your work. Trial Balance, June 30, 1919 C. DOING BUSINESS ON CASH AND CREDIT BASIS I. Model-A Month's Business of a Milliner Thus far all of our accounts have been on a cash basis. But most of the business of the world is done partly on a credit basis. 1919 1. The following account of a milliner shows the slight changes necessary in keeping the records of a business done partly on credit. A business girl, Margaret Morton, has been saving money until she has $2000. On March 1, 1919, she opens a millinery shop. The following are her transactions for a month: Mar. 1 Paid one month's rent in cash.. $200.00 Paid by check Mitchell & Co. for fixtures.. 540.00 (Write the check and indorse it.) 3 Paid for telephones for 3 months... 37.50 ping material, boxes, etc. . . . . 48.50 4 Bought of McMinn Bros., frames, linings. 125.00 950.00 20.00 Paid Smith & Co. by check bill of Mar. 3.. 48.50 (Write the check and indorse it.) 10 Paid McMinn Bros. bill of Mar. 4.. 125.00 Cash sales.. 50.00 Received Mrs. S. L. Bates, bill of Mar. 5.. 19.50 Mar. 14 Cash Sales.. Sold to Miss L. C. Lannon, on acct. 1 Hat... Sold to Mrs. J. V. Kames, on acct. 21.40 25.00 2 Hats @ .12.50 15 Cash Sales.. 52.48 Received Mrs. L. C. Beard, bill Mar. 6... 52.50 Received Mrs. A. C. Barker, bill Mar. 5.. 18.50 17 Sold to Miss A. R. Johnson, on acct. Received Mrs. A. H. Reeves, bill Mar. 6. 45.00 Sold to Miss L. K. Alexander, on acct. |