22. What is meant by petty cash? How is the account of petty cash kept?
23. Mr. H. B. Emerson is a dealer in coal and lumber. That he may know what profits are made in each branch of his business, he keeps accounts in his ledger with coal and lumber. In his sales book, one column is used for lumber sales and one for coal sales. No purchase book is kept. His assets and liabilities are as follows:
| ASSETS | |||
| Cash in State bank | $1,427.30 | ||
| Inventory, | coal | 600.00 | |
| " | lumber | 1,750.00 | |
| Frank Knowlton, note due Aug. 2nd | 75.00 | $3,852.30 | |
| ———— | |||
| LIABILITIES | |||
| Eastern Coal Co., open account | 260.00 | ||
| Northern Lumber Co., " | 420.00 | 680.00 | |
| ———— | |||
The following transactions are recorded:
May 3. Bought from John Weber, for cash, lumber $130.00; paid by check No. 19.
May 4. Sold to Edward Walsh, on account, 2 tons coal @ 7.00, $14.00.
May 5. Drew from bank for petty cash, check No. 20, $10.00; sold to Franklin & Co., lumber, $256.00.
May 6. Sold for cash, coal $17.50; received from Edward Walsh, on account, $10.00.
May 7. Gave Northern Lumber Co., check No. 21, $220.00, 60-day note, $200.00.
May 8. Accepted 30-day draft of Eastern Coal Co., $260.00; paid for repairs to desk, cash, $1.50.