Questions in Advanced Bookkeeping for Drill, Test and Review Volume 2

by Isaac Price

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1918 ...is an exchange of values, the values not necessarily being money, but they may be in terms of money--that is, upon a common basis. One person (or firm) receives something of value from another for which he gives something of value in exchange. 4. In two ways; the business receives and it gives. See Answer 3. There are one or more debits and one or more credits involved in each transaction. 5. (a) A debit is a representation of value received by the account under which the debit is placed. It is generally an amount due the business, or the value or amount of. a thing or service received, (b) A credit is a representation of a value given away or disposed of. It is an amount owed to others by the business or the amount or value of a thing or service given. (c) A debtor (Dr.) is any person owing value to others, while (d) a creditor (Cr.) is one to whom value is owing. Debit and credit can be used only in connection with accounts, while debtor and creditor are used to refer to persons or their representatives. 6. An account is a systematic collection of debit and credit items of the same nature and class under one heading in a book of accounts, making easier the arithmetical determination of the value of the account. Custom has arranged that all debit items are placed on the left-hand side and the credit items on the right 107 hand side of the ledger accounts. These items are thus arranged in the most convenient form for solution. 7. (a) Opening an account consists, first, in writing the name or title at the top of the page or space for the account. The initial entry is to be made according to circumstances. (b) Closing an account is making it show at a glance its relation to the business, whether a gain or a loss, or whether a resource or a liability. See Answ...

42 pages, Paperback

Published January 1, 2012