THE ADMINISTRATION BUILDING OF THE MINNEAPOLIS STEEL & MACHINERY CO., MINNEAPOLIS, MINN.
Shipper's General Ledger
EXERCISE
48. On a certain date a trial balance of the ledger of Henry Donnely, shipper of produce, stood as follows:
| DEBITS | ||
|---|---|---|
| Purchases of apples | $1,264.00 | |
| Purchases of potatoes | 1,500.00 | |
| Shipment Ledger Account | 736.00 | |
| Cash | 450.00 | |
| CREDITS | ||
| Shipment Account—apples | 1,200.00 | |
| Shipment Account—potatoes | 1,200.00 | |
| Profit on Shipments—apples | 250.00 | |
| Profit on Shipments—potatoes | 350.00 | |
| Accounts Payable | 950.00 | |
| During a subsequent period, his transactions were as follows: | ||
| Cash purchases of apples | 1,000.00 | |
| Cash purchases of potatoes | 1,000.00 | |
| Shipments of apples | 900.00 | |
| Shipments of potatoes | 1,100.00 | |
| Profits on apples | 100.00 | |
| Profits on potatoes | 200.00 | |
| Account Sales for which cash was received | 1,800.00 | |
| Account sales charged to Agts. | 600.00 | |
| Shipment Ledger Account decreased | 100.00 | |
| Sundry expenses paid in cash | 50.00 | |
| Inventory at end of period | ||
| Apples | 210.00 | |
| Potatoes | 190.00 | 400.00 |
Prepare trading and profit and loss accounts showing net profits or losses on both apples and potatoes for the entire period represented by the accounts.
COMMISSION MERCHANTS' BOOKS
49. The books required by a produce commission merchant are receiving book, cash book, consignment ledger, sales book, sales ledger, journal, and general ledger. If he buys produce to be sold on his own account, he also requires a purchase book and purchase ledger.