Six years ago Andrews' capital was $42,000.00. The profits for the first three years appear to have been $3,000.00, $4,000.00, and $5,284.00, and the losses for the three subsequent years $1,500.00, $2,500.00, and $3,000.00, after allowing $2,000.00 a year for interest on capital. His withdrawals have been at the rate of $4,000.00 a year. From these particulars, prepare a statement of affairs and a deficiency account.
13. What differences exist between a transaction for the purchase or sale of stock, and the purchase or sale of grain?
14. Explain a ring settlement.
15. What is necessary to post to the customer's ledger account, and from what sources do you post?
16. Show form of margin book and explain how it is kept.
17. In what cases should interest be charged? What is it charged for?
18. What should be entered in the general cash book?
19. Explain fully the handling of office cash.
20. If A bought 5,000 bushels of wheat at $1.20, and sold 12,000 bushels at $1.21, how much cash would he be obliged to deposit to secure the fulfillment of his orders?
21. What is the cash which he deposits called?