24. Andrew Jackson paid his note of August 25, $750. The T. J. Stewart Office Supplies Co. paid their bill of October 18, $2,582.50 less $51.65. Sold Field & Co. at 1/30, n/60, desks and tables $1,789, bookcases and cabinets $680, office supplies $348. Sold Sundry Customers at n/30, desks and tables $1,100, bookcases and cabinets $860, office supplies $350. Paid note No. 96, $930.78 with interest $9.31.
25. A. J. Scobey, A. K. Ladd, and J. B. Gaynor paid the balance on their subscriptions, $13,167.50.
26. Bought from Brickley Desk Co. at 2/10, n/30, tables and desks $6,240, bookcases and cabinets $3,780. Paid B. F. Brainard & Co. bill of September 26, $11,035 less $100.35. R. M. Goddard Furniture Co. made us an allowance on purchase of October 16, of $200 on desks and $150 on cabinets due to latent defects.
27. Paid Kistler Stationery Co. bill of October 1, $150.
Instructions
October 1. [See page 39] for method of transferring purchase ledger accounts to voucher register.
October 5. See Volume I, page 327, for handling Bach’s protested note. Here the record will be partly in the voucher register and partly in the general journal.
October 7. Where a special bank account is kept temporarily, oftentimes a separate cash book is used. One additional column on each side of the cash book will also serve to segregate the charges and credits to it. Here, since receipts are few, they will be entered in the regular bank column with an “X” placed in front of them to secure periodic analysis. All disbursements will be made by regular voucher check, but recorded in the first column of the cash disbursements journal instead of the regular bank column. Inasmuch as only the one account is kept on the ledger with the bank, postings to it will have to be made in two items—one the regular, the other the building fund—for both receipts and disbursements. An alternative method is to carry the detail of the account only in the cash book, posting only totals of all receipts and disbursements to the ledger bank account. However handled, the cash book should show, when balanced, the amounts in both funds and the trial balance should contain the same information.
To effect the transfer of cash to the Building Fund account at the bank, a regular voucher check is drawn to order of Building Fund account. This is distributed in the voucher register to Sundry columns as a charge to Voucher Payable and must be entered on both sides of the cash book but, of course, not posted.
October 8. Charge payment to Goodman to Organization Expense.