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 BOOKKEEPING 
 
 COMMISSION AND 
 GENERAL MERCHANDISE 
 
 GEORGE W.MINER 
 
 GINNAND COMPANY 
 
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Digitized by the Internet Archive 
 
 in 2007 with funding from 
 
 Microsoft Corporation 
 
 http://www.archive.org/details/bookkeepingcommiOOminerich 
 
MOORE AND MINER SERIES 
 
 BOOKKEEPING 
 
 COMMISSION 
 
 AND 
 
 GENERAL MERCHANDISE 
 
 BY 
 
 GEORGE W. MINER 
 
 GINN AND COMPANY 
 
 BOSTON • NEW YORK • CrflCAGO • LONDON 
 
>:• i * 
 
 hF& 
 
 COPYRIGHT, 1914, BY 
 GEORGE W. MINER 
 
 ALL BIGHTS BESEBVED 
 514.9 
 
 EDUCATION DEFT* 
 
 gftc fltfrenaenm jMgM 
 
 GINN AND COMPANY • PRO- 
 PRIETORS • BOSTON • U.S.A. 
 
PREFACE 
 
 This set on Commission and General Merchandise has been prepared 
 to meet the needs of those schools that require this subject in the 
 bookkeeping course, and for those teachers and schools that wish to 
 use independent sets for reviews or for advanced work. 
 
 54JM88 
 
CONTENTS 
 
 PAGE 
 
 COMMISSION AND GENERAL MERCHANDISE 1 
 
 MEMORANDA OF TRANSACTIONS . . . 5 
 
 COMMISSION PROBLEMS 13 
 
BOOKKEEPING 
 
 COMMISSION AND GENERAL 
 MERCHANDISE SET 
 
 Object. This set is designed to illustrate a simple method of handling 
 consignments in connection with a stock of merchandise. 
 
 A Consignment consists of the goods received to be sold. 
 
 The Consignor is the one (usually the owner) who sends or delivers the 
 goods to the consignee. 
 
 The Consignee is the one to whom the goods (the consignment) are 
 sent or delivered. 
 
 A Commission Merchant is the one who sells the goods received from the 
 consignor, and makes returns for the same. 
 
 Commission is the sum received by the commission merchant, or agent, for 
 his service in selling consignments ; it is usually a certain per cent of 
 the sales. 
 
 The goods that are entered as a consignment by the consignee are 
 treated as a shipment by the consignor. 
 
 The commission merchant is responsible for all consignments sold 
 on account. 
 
 No business forms are to be used in this set. 
 
 In the text, reference is made to various business forms, but all of these refer- 
 ences are to be considered as aids to the student in making the required entries. 
 For instance, if the statement is made for the student to render an account sales, 
 the form is not to be written ; only the entries relating to the transaction are made 
 by the student. 
 
 Books. The following books will be used in this set : 
 The Cashbook, in which are entered all cash items. 
 
 The illustration sets forth the plan of this book. On the left side special columns 
 are provided for Merchandise and Consignments sold for cash, the amounts coming 
 from the cash sales book at the close of each day. On the right side special columns 
 are provided for Commission and Consignments. The columns marked General are 
 used as in an ordinary cashbook. The posting of the cashbook will be explained in 
 the course of the set. 
 
 The model cashbook is given on pages 2 and 3. 
 
 1 
 
,2: ; 
 
 BOOKKEEPING 
 
 Model Cashbook — Cash Receipts 
 
 DATE 
 
 L.F. 
 
 NAME OF ACCT. 
 
 EXPLANATION 
 
 MDSE. 
 
 CONS. 
 
 GENERAL 
 
 19— 
 
 
 
 
 
 
 
 
 
 
 
 July 
 
 6 
 6 
 
 1 
 1 
 
 Student 
 A. R. Jones 
 
 Investment 
 Investment 
 
 
 
 
 
 1500 
 1500 
 
 
 
 7 
 
 V 
 
 Mdse. 
 
 Cash sales 
 
 34 
 
 75 
 
 
 
 
 
 
 7 
 
 V 
 
 Cons. 
 
 « « 
 
 
 
 5G 
 
 70 
 
 
 
 
 8 
 
 5 
 
 A. Morris 
 
 On account 
 
 
 
 
 
 256 
 
 20 
 
 
 8 
 
 V 
 
 Mdse. 
 
 Cash sales 
 
 143 
 
 55 
 
 
 
 
 
 
 8 
 
 V 
 
 Cons. 
 
 " " 
 
 
 
 117 
 
 25 
 
 
 
 1 
 
 9 
 
 6 
 
 Lewis King 
 
 On account 
 
 
 
 
 
 58 
 
 90 
 
 
 9 
 
 V 
 
 Mdse. 
 
 Cash sales 
 
 98 
 
 50 
 
 
 
 
 
 
 9 
 
 V 
 
 Cons. 
 
 <t « 
 
 
 
 84 
 
 20 
 
 
 
 
 10 
 10 
 10 
 
 4 
 1 
 2 
 
 John Park 
 
 Mdse. 
 
 Cons. 
 
 On account 
 
 Total 
 
 Total 
 
 
 
 
 
 175 
 276 
 258 
 
 
 
 276 
 
 80 
 
 80 
 
 
 
 
 258 
 
 15 
 
 15 
 
 
 
 
 4025 
 
 05 
 
 
 
 
 
 Receiving, or Commission, Book. In this book are recorded all consign- 
 ments received, each being given a lot number, and by this number all 
 transactions relating to the consignment are identified. The name and 
 the address of the consignor are recorded, together with a statement of 
 the goods received, the freight charges, etc. 
 
 Many different forms are used for recording consignments. Some houses use a 
 sales book, on the left side of which are entered the goods received and all charges 
 thereon; on the right side all sales are entered; others use a loose-leaf ledger, a 
 sheet which has columns for recording all items pertaining to a given consignment. 
 
 Commission merchants use a stamp or a stencil for marking all consignments 
 received, never using the name of the consignor, as the merchant does not wish to 
 reveal the names of his consignors. The mark may be a number or a letter or a 
 symbol or some combination of these. 
 
 When a consignment is received it is set apart by itself or placed in a stall and 
 immediately marked. This enables a merchant to identify any consignment and to 
 credit all sales properly. 
 
 The posting of the receiving book will be explained at the close of the 
 second day's business, in the set. 
 
 
 
 Model Receiving Book, July 7, 19 — 
 
 
 
 
 
 LOT NO. 
 
 L.F. 
 
 
 
 
 
 
 63 
 64, 
 
 
 John R. Lane, Flushing 
 60 bbl. Potatoes — Freight 
 Car #6754, N.Y., N.H. & H.R.R. 
 7 
 
 A. D. Mathews, Hempstead 
 40 bags Onions — Freight 
 Car #4321, N.Y. Cent. R.R. 
 
 6 
 
 4 
 
 25 
 
 10 
 
 25 
 
 
 
 
 
COMMISSION SET 
 
 A ! Wti 
 
 Model Cashbook — Cash Payments 
 
 DATE 
 
 L.F. 
 
 NAME OF ACCT. 
 
 EXPLANATION 
 
 COMM. 
 
 CONS. 
 
 GENERAL 
 
 19- 
 
 
 
 
 
 
 
 
 
 
 
 July 
 
 6 
 6 
 
 7 
 
 2 
 2 
 3 
 
 Office Fixt. 
 Horse & Wagon 
 Expense 
 
 Books, etc. 
 Delivery 
 Rent, 1 mo. 
 
 
 
 
 
 28 
 190 
 65 
 
 75 
 
 
 8 
 
 5 
 
 Lowe & Co. 
 
 Acct. Sales 
 
 5 
 
 80 
 
 284 
 
 20 
 
 
 
 
 8 
 
 1 
 
 Mdse. 
 
 Kane & Co. 
 
 
 
 
 
 850 
 
 
 
 9 
 
 3 
 
 Expense 
 
 
 
 
 
 
 10 
 
 50 
 
 
 9 
 
 5 
 
 H. B. Ware 
 
 Acct. Sales 
 
 7 
 
 09 
 
 347 
 
 41 
 
 
 
 
 10 
 
 10 
 
 3 
 2 
 3 
 
 Expense 
 Cons. 
 
 To Comm. 
 
 Salaries 
 
 
 
 
 
 30 
 
 
 
 12 
 
 89 
 
 631 
 
 61 
 
 
 
 
 
 
 
 
 
 10 
 
 2 
 
 Cons. 
 
 Net 
 
 
 
 
 
 631 
 
 61 
 
 
 10 
 
 
 Balance 
 
 In Bank 
 
 
 
 
 
 2219 
 
 19 
 
 
 4025 
 
 05 
 
 
 
 
 
 
 Time Sales Book. In this book are recorded all goods sold on account. 
 In the first column is extended the amount of each sale, and if the sale 
 is accompanied by a consignment number the amount is also written in 
 the column marked Cons.-, but if it is not accompanied by a consignment 
 number, then the amount is written in the column marked Mdse. The 
 posting of this book is explained at the close of July 7, and the posting 
 of the footings is explained at the end of the week, July 11. 
 
 Model Time Sales Book, July 7, 19 — 
 
 LOT NO. 
 
 L.F. 
 
 
 AMOUNT 
 
 CONS. 
 
 MDSE. 
 
 63 
 64 
 65 
 
 7 
 
 9 
 
 1 
 
 2 
 
 Amos Bond, on acct. 
 
 20 bbl. Potatoes 21° 
 5 bags Onions 3_ 
 50 Melons 30^ 
 
 10 
 David Jordan, on acct. 
 
 50 Melons 300 
 20 bbl. Potatoes 2§o 
 5 bags Onions 31? 
 
 To Cons. 
 To Mdse. 
 
 48 
 15 
 15 
 
 
 48 
 15 
 15 
 
 15 
 15 
 
 50 
 
 52 
 
 
 
 78 
 
 
 
 65 
 69 
 
 15 
 52 
 15 
 
 50 
 
 
 
 82 
 
 50 
 
 
 
 
 
 108 
 
 50 
 
 52 
 
 
 
 
 
 
 
 
 
 
 Cash Sales Book. In this book are recorded all cash sales, each 
 amount being extended into either the column marked Cons, or the 
 column marked Mdse. This book is closed and posted at the end of 
 each day. The posting is explained at the close of July 8. 
 

 
 BOOKKEEPING 
 
 Model Cash Sales Book, July 8, 19 — 
 
 LOT NO. 
 
 L.F. 
 
 
 CONS. 
 
 MDSE. 
 
 63 
 64 
 
 6 
 
 S. B. Wren 
 40 bbl. Potatoes 2™ 
 10 bags Onions 2?i 5 
 10 bbl. Potatoes 2^ 
 
 To Cons. 
 
 To Mdse. 
 
 100 
 29 
 
 50 
 
 25 
 
 
 
 129 
 
 50 
 
 25 
 
 
 
 
 
 
 
 
 Consignment Ledger. This ledger is used in addition to the general, 
 or main, ledger and in connection with it, and shows a detailed record 
 of each consignment. 
 
 If a second consignment is received from the same person, a second account must 
 be opened with it, as the consignment ledger must have an account with each sepa- 
 rate consignment received. These consignments are all identified by the particular 
 number given when each was received and entered in the receiving book. 
 
 The posting to this ledger is explained under July 7, page 6. 
 
 Model Consignment Ledger 
 
 JOHN R. LANE F , ushing 
 
 19— 
 July 
 
 
 
 
 
 19— 
 
 
 Lot #63 
 
 60 bbl. Potatoes 
 
 2 
 
 
 
 July 
 
 7 
 8 
 
 Freight 
 
 Com. 
 
 Net Proceeds 
 
 7 
 7 
 
 6 
 
 14 
 127 
 
 80 
 20 
 
 
 
 
 148 
 
 
 
 
 
 
 
 
 20 bbl. 
 40 bbl. 
 60 bbl. 
 
 240 
 
 48 
 100 
 
 148 
 
 Main, or General, Ledger. This ledger corresponds to the ledger used 
 in each of the preceding sets. 
 
 No journal will be used in this set, as no notes are handled and all purchases are 
 for cash. 
 
 An Account Sales is a statement rendered by the consignee to the con- 
 signor, giving a detailed report of a given consignment ; it is, in fact, a 
 duplicate of the record found in the consignment ledger. 
 
COMMISSION SET 
 
 Model Account Sales 
 
 Springfield, July 9, 19 — 
 
 Sold for Account of 
 
 Mr. John R. Lane, Flushing, L.I. 
 
 COLBURN & BRENNAN 
 
 COMMISSION MERCHANTS AND DEALERS IN 
 
 GENERAL MERCHANDISE 
 
 210 MAIN STREET 
 
 July 
 July 
 
 Rec'd 60 bbl. Potatoes 
 
 Sales 
 
 20 bbl. 
 40 " 
 
 2.40 
 2.50 
 
 Charges 
 
 Freight 
 Cartage 
 
 Commission 10% 
 Net proceeds 
 
 48 
 100 
 
 6 
 14 
 
 80 
 
 148 
 
 20 
 
 127 
 
 80 
 
 20 
 
 MEMORANDA OF TRANSACTIONS 
 
 Monday, July 6 
 
 Student and James N. Lee have this day formed a partnership for the 
 purpose of conducting a Commission and General Merchandise business, 
 at 210 Main Street, under the firm name of Student & Lee, each partner 
 investing cash $1000. 
 
 Enter in the cashbook, investment. (See model, pages 2-3.) 
 
 Student will have charge of the books, and Mr. Lee will superintend the business. 
 
 Engage James Downey as delivery man, at $10 per week. 
 
 No entry for this engagement. 
 
 In this set it is assumed that a bank account is kept and all payments made by 
 check. 
 
 Give Morand & Co. a check for $210, in payment for a horse, a wagon, 
 and a set of harness. 
 
 Enter in the cashbook under Horse and Wagon account. 
 
 Give Andrew N. Gray a check for $50, in payment of the rent of the 
 store for 1 mo. 
 
 Give Naples & Co. a check for $28.50, for a bill for office books. 
 Enter in the cashbook under Expense. 
 
6 BOOKKEEPING 
 
 Give Lamar & Son a check for $32, in payment for 1 office desk. 
 Charge to Office Fixtures. 
 
 Give Macy & Cooper a check for $9.50, for stationery and office 
 supplies. 
 
 Enter in the cashbook under Expense. 
 
 Post the day's work. All the preceding entries have been recorded in the cash- 
 book, and should be posted to their respective accounts in the main ledger] allow 
 for each account one fourth of a page. 
 
 Tuesday, July 7 
 
 Receive of John R. Lane, Flushing, 60 bbl. Potatoes, to be sold on 
 his account; N.Y., N.H. & H.R.R., car #6754. Freight, $6. 
 
 Enter in the receiving book, Lot No. 63. (See model, page 2.) 
 
 All freight bills will be paid at the end of each week to the Ellis Carting Co. 
 
 Receive of A. D. Mathews, Hempstead, 40 bags Onions, to be sold on 
 his account; N.Y. Cent. R.R., car #4321. Freight, $4.25. 
 
 A bag of onions, as used in this set, weighs 100 lb. 
 Continue the lot numbers in regular order, this being No. 64. 
 
 Receive of Loomis & Son, Macon, 500 Melons, to be sold on their 
 account; N.Y. Cent. R.R., car #65,789. Freight, $27.50. 
 
 Sell Amos Bond, City, on account: 20 bbl. Potatoes, lot No. 63, at 
 $2.40 ; 5 bags Onions, lot No. 64, at $3 ; 50 Melons, lot No. 65, at 3(ty. 
 
 Enter in the time sales book. (See model, page 3.) 
 
 Post the day's work. In the consignment ledger open an account with each con- 
 signment that has been entered in the receiving book, recording the items on the 
 debit side, as follows : the lot number, the quantity, and the freight. Allow for each 
 account one fourth of a page. 
 
 Refer to the model consignment ledger, page 4. 
 
 The time sales book : open an account in the main ledger, and debit Amos Bond 
 for the full amount of the first sale, this amount being recorded in the first money 
 column of the time sales book. 
 
 Credit each consignment account, in the consignment ledger, for the goods sold for 
 that consignment, the lot number in the sales book being the guide for the posting 
 of each amount. The page of the consignment ledger is placed at the left of each 
 amount posted from the sales book. 
 
 This concludes the posting for the day. 
 
 Wednesday, July 8 
 Give Aaron A. Bird a check for $105, in payment for 50 bbl. Potatoes. 
 
 Enter in the cashbook under Mdse. in the general column. 
 
 This is not a consignment, but a part of the merchandise stock carried by 
 the firm. 
 
COMMISSION SET 7 
 
 Receive of Bardwell & Co., Flushing, 40 bbl. Potatoes, to be sold on 
 their account; N.Y. Cent. R.R., car #5643. Freight, $4. 
 
 Receive of Lawrence & Son, Jamaica, 30 bbl. Potatoes, to be sold on 
 their account ; N.Y., N.H. & H.R.R., car #24,365. Freight, $3.10. 
 
 Sell S. B. Wren, City, for cash: 40 bbl. Potatoes, lot No. 63, at $2.50 ; 
 10 bags Onions, lot No. 64, at. $2.95 ; 10 bbl. Potatoes at f 2.50. 
 
 Enter in the cash sales book, the first two amounts being extended into the con- 
 signment column, and the third amount into the merchandise column. (See model, 
 page 4.) 
 
 Post the day's work. The Mdse. amount, in the cashbook, should be posted to 
 the main ledger ; the two consignments, Bardwell & Co. and Lawrence & Son, should 
 be posted to the consignment ledger. 
 
 Rule the cash sales book as shown in the model, page 4, and on the left side of 
 the cashbook enter the footing of the consignment column of the sales book in the 
 Cons, column ; the footing of the merchandise column is carried to the left side of 
 the cashbook, in the Mdse. column. Credit the consignments, in the consignments 
 ledger, with the amounts in the cash sales book ; remember the lot number is the 
 guide for this posting. 
 
 This book must be closed and the footings posted each day. 
 
 Thursday, July 9 
 
 Render an account sales of John R. Lane's consignment, No. 63, and 
 send him a check for the net proceeds. 
 
 Refer to Lane's account in the consignment ledger; the total sales amount to 
 $148 ; the commission at 10%, $14.80 ; the net proceeds (total sales minus the 
 commission and the freight), $127.20. 
 
 Enter in the cashbook, recording the commission in the column marked Comm. 
 and the net proceeds in the column marked Cons. (See fourth entry in the model 
 cashbook, right side, page 3.) 
 
 The regular commission charge in this set will be 10%. 
 
 Sell Beatty & Co., City, on account : 15 bags Onions, lot No. 64, at $3 ; 
 100 Melons, lot No. 6b, at 25<£; 20 bbl. Potatoes, lot No. 66, at $2.35. 
 
 Enter in the time sales book. 
 
 Receive a check from Amos Bond for the amount of the invoice sold 
 him on July 7. 
 
 Enter in the cashbook in the general column. 
 
 Sell Henry M. Lord, City, for cash: 10 bags Onions, lot No. 64, at 
 $2.75 ; 100 Melons, lot No. 65, at 25<£. 
 
 Enter in the cash sales book. 
 
8 BOOKKEEPING 
 
 Receive of John R. Lane, Flushing, 40 bbl. Potatoes, to be sold on 
 his account; N.Y., N.H. & H.R.R., car #7846. Freight, $5.20. 
 
 Post the day's work ; if necessary, refer to preceding directions for posting. 
 
 Remember, the cash sales book is closed every day, and all the amounts represented 
 by lot numbers, in either sales book, must be posted to the consignment ledger. 
 
 Close Lane's account, consignment No. 63, entering the commission and the net 
 proceeds on the debit side ; rule and foot the account, as it balances. 
 
 Friday, July 10 
 
 Render an account sales of A. D. Mathews's consignment, No. 64, 
 sending him a check for the net proceeds. 
 
 Receive of E. D. Snow, Hempstead, 20 bags Onions, to be sold on 
 his account; N.Y. Cent. R.R., car #67,894. Freight, $2.75. 
 
 Receive of Croton & Co., Atlanta, 100 Melons, to be sold on their 
 account; Southern R.R., car #3269. Freight, $9.40. 
 
 Give John Dunn a check for $10, for carpenter work in the store. 
 
 Charge to Expense. 
 
 Sell David Jordan, City, on account : 50 Melons, lot No. 65, at 300 ; 
 20 bbl. Potatoes at $2.60 ; 5 bags Onions, lot No. 69, at $3.10. 
 
 Sell E. D. Cashman, City, for cash, 50 Melons, lot No. 70, at 300. 
 
 Sell Lester Ford, City, on account, 100 Melons, lot No. 65, at 250. 
 
 Sell Samuel E. Fell, City, for cash: 10 bbl. Potatoes, lot No. 67, at 
 $2.60 ; 5 bbl. Potatoes, lot No. 68, at $2.40. 
 
 Receive of Beatty & Co., a check, for the invoice of July 9. 
 
 Sell Walter M. Davis, City, on account, 100 Melons, lot No. 65, at 250. 
 
 Sell Chester Willis, City, for cash, 10 bbl. Potatoes, lot No. 66, at $2.50. 
 
 Post the day's work. Close Mathews's account, consignment No. 64. 
 
 Saturday, July 11 
 
 Render an account sales of Loomis & Son's consignment, No. 65, 
 sending them a check for the net proceeds. 
 
 Sell Amos Bond, City, on account: 20 bbl. Potatoes, lot No. 68, at 
 $2.50 ; 10 bags Onions, lot No. 69, at $3 ; 25 Melons, lot No. 70, at 250. 
 
 Sell Beatty & Co., City, for cash, 20 bbl. Potatoes, lot No. 67, at $2.60. 
 
 Receive of A. D. Mathews, Hempstead, 30 bags Onions, to be sold on 
 his account; N.Y. Cent. R.R., car #98,501. Freight, $3.25. 
 
 Receive a check from David Jordan, for the amount of the invoice of 
 July 10. 
 
 Sell James Goodwin, City, on account, 10 bbl. Potatoes, lot No. 66, 
 at $2.50. 
 
COMMISSION SET 9 
 
 Sell Alfred B. Jones, City, on account, 10 bbl. Potatoes, lot No. 68, 
 at $2.50. 
 
 Give James Downey, clerk, a check for $10. 
 
 Charge to Expense. 
 
 Pay freight bills for the week by check, to Ellis Carting Co., $65.45 ; 
 this amount is the footing of the receiving book. 
 
 Enter in the cashbook in the Cons, column. 
 
 This sum is charged to consignments, as it represents a payment on that account. 
 
 Post the day's work. Close the time sales book (see model, page 3), and post 
 the footing of the Cons, column to the credit of consignments, and the footing of 
 the Mdse. column to the credit of Merchandise, in the main ledger. 
 
 Close Loomis and Co.'s account, consignment No. 65. 
 
 Monday, July 13 
 
 Render an account sales of Bard well & Co.'s consignment, No. 6Q, 
 sending them a check for the net proceeds. 
 
 Render an account sales of Lawrence & Son's consignment, No. 67, 
 sending them a check for the net proceeds. 
 
 Give Homer C. Bush a check for $52.50, in payment for 25 bags Onions. 
 
 Charge to Mdse. 
 
 Sell David Jordan, City, on account: 5 bbl. Potatoes, lot No. 68, at 
 $2.40 ; 5 bags Onions at $3. 
 
 Give John C. Young a check for $110, in payment for 10 tubs, 500 lb., 
 Elgin Creamery Butter, at 220. 
 
 Receive of John R. Lane, Flushing, 100 bbl. Potatoes, to be sold on 
 his account; N.Y. Cent. R.R., car #5694. Freight $10. 
 
 Sell D. J. Mason, City, on account: 10 Melons, lot No. 70, at 280; 
 2 tubs, 100 lb., Elgin Creamery Butter, at 300. 
 
 Student and James N. Lee, proprietors, each withdraw by check ^75, 
 for personal use. 
 
 Post the day's work. Close Bardwell & Co.'s account, consignment No. 66 ; also 
 Lawrence & Son's account, consignment No. 67. 
 
 Tuesday, July 14 
 
 Render an account sales of John R. Lane's consignment, No. 68, 
 sending him a check for the net proceeds. 
 
 Receive cash of Lester Ford, in full of account. 
 
 Sell James Goodwin, City, on account : 50 bbl. Potatoes, lot No. 72, 
 at $2.60 ; 10 bags Onions, lot No. 71, at $2.90. 
 
10 BOOKKEEPING 
 
 Sell Daniel Osgood, City, for cash : 10 Melons, lot No. 70, at 23<£ ; 3 
 tubs, 150 lb., Elgin Creamery Butter, at 280 ; 10 bbl. Potatoes at $2.60. 
 
 Receive of Bardwell & Co., Flushing, 25 bbl. Potatoes, to be sold on 
 their account; N.Y. Cent. R.R., car #74,823. Freight, $ 2.90. 
 
 Give Aaron R. Bird a check for $208.50, hi payment for 100 bbl. 
 Potatoes. 
 
 Sell Lester Ford, City, on account : 5 bags Onions, lot No. 69, at $3 ; 
 20 bbl. Potatoes at $2.55 ; 3 tubs, 150 lb., Elgin Creamery Butter, at 300. 
 
 Receive cash of Walter M. Davis, hi full of account. 
 
 Post the day's work. Close Lane's account, consignment No. 68. 
 
 Wednesday, July 15 
 
 Render an account sales of Croton & Co.'s consignment, No. 70, sending 
 them a check for the net proceeds. 
 
 In this consignment 5 melons were spoiled in shipping, so that the sale of 95 
 melons closes the consignment. Indicate this fact in the Consignment account. 
 
 Render an account sales of E. D. Snow's consignment, No. 69, sending 
 him a check for the net proceeds. 
 
 Receive of E. D. Snow, Hempstead, 50 bags Onions, to be sold on his 
 account; N.Y. Cent. R.R., car #679. Freight, $6.25. 
 
 Give John C. Young a check for $200, in payment for 20 tubs, 
 1000 lb., Elgin Creamery Butter, at 20<£. 
 
 Receive of James Goodwhi a check for the amount of the invoice sold 
 him on July 11. 
 
 Post the day's work. Close Croton & Co.'s account, consignment No. 70 ; also 
 E. D. Snow's account, consignment No. 69. 
 
 Thursday, July 16 
 
 Sell Walter M. Davis, City, on account, 50 bbl. Potatoes, lot No. 72, 
 at $2.60. 
 
 Receive of Alfred Jones a check for the amount of the invoice sold 
 him on July 11. 
 
 Sell Beatty & Co., City, on account : 10 bags Onions, lot No. 71, at 
 $3.05 ; 15 bbl. Potatoes, lot No. 73, at $2.40. 
 
 Receive of D. J. Mason a check for the amount of the invoice sold 
 him on July 13. 
 
 Sell Smith Bros., City, for cash: 25 bbl. Potatoes at $2.60; 6 tubs, 
 300 lb., Elgin Creamery Butter, at 30<£. 
 
 Receive cash of Lester Ford, on account, $100. 
 
COMMISSION SET 11 
 
 Sell Alfred Jones, City, on account: 10 bags Onions, lot No. 74/ at 
 $3.05 ; 10 bbl. Potatoes, lot No. 73, at $2.55. 
 
 Post the day's work. 
 
 Friday, July 17 
 
 Render an account sales of John R. Lane's consignment, No. 72, sending 
 him a check for the net proceeds. 
 
 Receive of Hildebrand & Co., Hempstead, 1 carload, 120 bbl., Potatoes, 
 to be sold on their account; N.Y. Cent. R.R., car #5679. Freight, $12. 
 
 Render an account sales of Bardwell & Co.'s consignment, No. 73, 
 sending them a check for the net proceeds. 
 
 Sell Merrick & Johnson, City, for cash : 15 bbl. Potatoes at $2.50 ; 
 4 tubs, 200 lb., Elgin Creamery Butter, at 31<£ ; 5 bags Onions at $3. 
 
 Receive a check of Amos Bond, on account, $50. 
 
 Receive a check of James Goodwin, on account, $100. 
 
 Sell Bruce Wilson, Springfield, for cash, the carload of Potatoes, lot 
 No. 75, received this morning from Hildebrand & Co., at $2.40. As the 
 car has not been unloaded it is forwarded at once. 
 
 Receive a check from Bruce Wilson for the carload of Potatoes. 
 
 Receive of John R. Lane, Flushing, 60 bbl. Potatoes, to be sold on 
 his account; N.Y. Cent. R.R., car #6400. Freight, $6.85. 
 
 Receive of Croton & Co., Atlanta, 100 Melons, to be sold on their 
 account; N.Y. Cent. R.R., car #5023. Freight, ^5.65. 
 
 Sell D. J. Mason, City, on account, 10 bags Onions, lot No. 71, at $3. 
 
 Post the day's work. Close John R. Lane's account, consignment No. 72 ; also 
 Bardwell & Co.'s account, consignment No. 73. 
 
 Saturday, July 18 
 
 Render an account sales of A. D. Mathews's consignment, No. 71, 
 sending him a check for the net proceeds. 
 
 Receive of Howard & Son, Jamaica, 1 carload, 120 bbl., Potatoes, to 
 be sold on their account; N.Y. Cent. R.R., car #465. Freight, $12.50. 
 
 Render an account sales of Hildebrand & Co.'s consignment, No. 75, 
 sending them a check for the net proceeds. 
 
 Sell Amos F. Aldrich, City, for cash : 10 bbl. Potatoes at $2.60 ; 
 10 bags Onions, lot No. 74, at $3. 
 
 Give James Downey a check for 1 week's salary, $10. 
 
 Pay freight bills for the week by check to Ellis Carting Co., $56.15. 
 
 Post the day's work. Close the time sales book and post it. 
 Rule and foot the receiving book. 
 
12 BOOKKEEPING 
 
 Close A. D. Mathews's account, consignment No. 71 ; also Hilclebrand 
 & Co.'s account, consignment No. 75. 
 
 Rule and foot the cashbook, following the form and arrangement of the model 
 cashbook, pages 2 and 3. In finding the balance of cash do not count in the Comm. 
 column, as this does not represent cash paid out. 
 
 On the left side, post the footing of the Mdse. column to the credit of Merchandise, 
 and the footing of the Cons, column to the credit of Consignments. 
 
 On the right side, the footing of the Comm. column is posted as a journal entry, 
 debiting Consignments and crediting Commission ; the footing of the Cons, column is 
 posted to the debit of Consignments. 
 
 After the posting is completed, hand all books to the instructor for inspection 
 and approval. 
 
 Inventories, July 18, 19 — 
 
 Merchandise : 
 
 40 bbl. Potatoes at $2 $80. 
 
 15 bags Onions at #2.40 36. 
 
 12 tubs, 600 lb., Butter, at 210 126. #242. 
 
 Horse and Wagon : 
 
 Cost $210. 
 
 Depreciation 10. $200. 
 
 Office Fixtures : 
 
 Cost $32. 
 
 Depreciation 5.50 $26.50 
 
 Expense : 
 
 Office Books and Supplies $28.50 
 
 Depreciation 5.00 $23.50 
 
 Take a trial balance of the main ledger and submit it to. the instructor 
 for approval. 
 
 Take an abstract of the consignment ledger and submit it to the 
 instructor for approval. 
 
 Make the two statements. In the resource and liability statement the 
 Consignment account appears as a liability. 
 
 Hand the statements to the instructor for approval. 
 
 Note. If the ledger is closed by journal entry, record the entry on page 1, blank #1. 
 
 Close the ledger ; divide the net gain equally between the partners. 
 Hand all books to the instructor. 
 
COMMISSION PROBLEMS 13 
 
 COMMISSION PROBLEMS 
 
 Directions. Perform the required work, then hand it to the instructor 
 for inspection and approval. 
 
 When an account sales is called for in any of these problems, duplicate the 
 form given on page 5. 
 
 1. James N. Jackson, a commission merchant, has sold the following con- 
 signment for George H. Harmon : 
 
 60 bu. Potatoes at 840 
 35 bags Onions at $2.40 
 25 bbl. Melons at $3.60 
 
 Jackson paid the freight, $6.20, and deducted his commission at 5% ; find 
 the net proceeds. 
 
 If the consignment cost Harmon $172.40, what was his gain per cent ? 
 
 2. H. B. Morris, a broker, bought for Geo. N. Haswell, a speculator, 4000 bu. 
 of wheat at 98§0, on a commission of £0 per bushel. What was the broker's 
 commission, and what was the cost of the wheat to Haswell ? 
 
 3. Render an account sales, under the current date, for sales by you, a 
 commission merchant, for the account of Gray & Howard, Atlanta, Ga. : 
 
 50 bbl. Standard Flour at $6.50 
 60 bbl. XX Flour at $5.80 
 40 bbl. Pillsbury Flour at $5.20 
 100 bbl. Peerless Brand at $5.50 
 25 bbl. XXX Flour at $5 
 
 Charges: freight, paid by you, $42.10; commission, 6%. 
 
 4. Render an account sales. Geo. M. Jenson, Chicago, 111., a commission 
 merchant, has sold for R. M. Gilson, Atlanta, 111., the following : 
 
 100 bu. Potatoes at 810 
 50 bags Onions at $2.60 
 
 Charges : freight, paid by Jenson, $4.25 ; cartage, $1.10 ; commission, 
 6% ; guaranty, i%. 
 
 5. John S. Crane, a broker, bought cotton for the Lewis Manufacturing 
 Co., as follows : 
 
 600 bales, 300,000 lb., at 11^0 
 
 1100 bales, 550,000 lb., at lOf 
 
 400 bales, 200,000 lb., at 9^0 
 
 The broker's charges were $7.50 for each 100 bales. How much did the 
 broker receive, and what did the cotton cost the manufacturer ? 
 
14 BOOKKEEPING 
 
 6. Render an account sales, under the current date, for sales by you, a 
 commission merchant, for the account of Lay & Green, Wooster, Ohio : 
 
 6 cs., 142 doz., Eggs, at 240 
 
 4 bx., 220 lb., Cheese, at 160 
 
 5 tubs, 250 lb., Butter, at 300 
 
 Charges: freight, paid by you, $8.50; cartage, $1.50; commission, 4%; 
 guaranty, 1%. Report the breakage of 2 doz. eggs. 
 
 7. Render an account sales, using the current date. Wm. T. Brown, Buffalo, 
 N.Y., a commission merchant, sells for your account the following : 
 
 48 bbl. Apples at $5.20 
 100 bu. Potatoes at 820 
 
 Charges: freight, $27.55; cartage, $3.10; commission, 4%; guaranty, 1%. 
 Report the loss of 2 bbl. apples by decay and damage in shipping. 
 
 8. John S. Lee, a broker, bought for you 22,500 bu. wheat at 91^0. If, at 
 the end of 15 da., Lee sold the wheat at 96f0, and charged J0 per bushel for 
 buying and the same for selling, what was your gain ? (Interest not included.) 
 
 9. Find the amount to be charged to Reese & Co. John S. Drake, Cleve- 
 land, Ohio, has purchased for the account of Reese & Co., Indianapolis, Ind. : 
 
 10 hf. ch., 600 lb., Japan Tea, at 310 
 10 hf. ch., 500 lb., Oolong Tea, at 420 
 
 Charges: drayage, $5.50; commission, 4% ; guaranty, 1%. 
 
 10. Find the rate of commission and the amount due from Lane & Son. 
 Lakin Bros., New York City, have purchased for the account of Lane & Son, 
 Albany, N.Y., the following : 
 
 500 bbl. Washburn-Crosby Flour at $6.20 
 100 bbl. XXXX Flour at $5.75 
 250 bbl. Peerless Flour at $5.25 
 
 Charges : cartage, $13.60 ; commission, $199.50. 
 
 11. Render an account sales, under the current date, for sales by H. Rich, 
 Omaha, Nebr., a commission merchant, for the account of Leach & Son, 
 your place, as follows : 
 
 250 bu. Potatoes at 860 
 
 Charges: freight, paid by Rich, $9.25; cartage, $2.50; commission, 5% ; 
 insurance, $1.90. 
 
 12. Render an account sales, under the current date, for sales made by 
 L. R. Howard, commission merchant, Denver, Colo., for the account of 
 Streeter & Co., your place, as follows : 
 
 100 bbl. Baldwin Apples at $6.50 
 100 bbl. Greenings at $5.80 
 
COMMISSION PROBLEMS 15 
 
 Charges: freight, paid by Howard, $32.65 ; commission, 5%; storage, $3. 50. 
 $50 in cash was advanced by Howard when the consignment was received. 
 
 13. Harry C. Jones, a commission merchant, Columbus, Ohio, has sold for 
 Student the following consignment : 
 
 250 bbl. Baldwin Apples at $5.80 
 
 Render the account sales, as follows : freight, paid by Jones, $37.45 ; com- 
 mission, 10% ; insurance, $8.65 ; Jones has already honored your sight draft 
 for $300. 
 
 14. Student, a commission merchant, has sold for Kerr & Co., Lockport, N. Y., 
 the following consignment : 
 
 100 bbl. Greening Apples at $5.75 
 200 bu. Potatoes at 82<£ 
 
 Freight, paid by Student, $42 ; cartage, $11.60 ; commission, 5% ; guaranty, 
 1% ; cash advanced by you, $250. 
 
 a. Render an account sales. 
 
 b. Make all your entries from the receipt of the consignment until the 
 
 rendering of the account sales. 
 
 15. Henry S. Jenkins, a commission merchant, 28 Washington Street, 
 New York City, received from King & Son, Watertown, N.Y., a consignment 
 of 3000 bu. Potatoes. The potatoes were sold for 73$ per bushel, for cash. 
 
 The following charges were paid by Jenkins : storage, $5.30 ; commission, 
 5% ; cash advanced to King & Son, $300. 
 
 a. Student, as bookkeeper for Jenkins, renders the account sales. 
 
 b. Make all the entries on Jenkins's books from the receipt of the consign- 
 
 ment until the rendering of the account sales. 
 
 16. Student, a commission merchant, receives from James S. Benton, 
 Minneapolis, Minn., 200 bbl. Pillsbury Flour, to be sold on his account. 
 
 Before selling the flour Student accepted Benton's 10-day sight draft 
 for $500. 
 
 The flour was sold at $6.50 per barrel, cash. 
 
 Render an account sales, as follows : freight, paid by Student, $68.75 ; 
 commission, 5% ; storage, $18.50; cartage, $16. 
 
 17. Student sends a shipment of 200 bbl. Baldwin Apples to Home & Co., 
 commission merchants, 56 Washington Street, New York City, to be sold for 
 Student's account. 
 
 Make your entry when you sent the apples ; they cost you $5.20 per barrel, 
 and you paid the freight in cash, $15.40. 
 
 Make Home & Co.'s entry when they received the apples. 
 
 Home & Co. sell the apples at $6.90 per barrel, cash. 
 
 Render the account sales of Home & Co. : commission, 10% ; storage, $3. 
 
 Make Home & Co.'s entry when they render the account sales: 
 
16 BOOKKEEPING 
 
 Make your entry when you receive the returns from the shipment. 
 What is your gain on the whole transaction ? 
 
 18. Student, a commission- merchant, receives from H. F. Cleary, Hudson, 
 N.Y., a consignment of 300 bbl. Greening Apples. 
 
 Student made the following sales : 
 
 To John Roach 100 bbl. at $5.80, as follows : cash $300 ; balance on account. 
 
 To James K. Presser 100 bbl. at $6.00, as follows : cash $200 ; balance 
 on 10-day sight draft, which Presser agrees to accept on presentation. The 
 draft is in favor of Student. 
 
 To Homer E. Brock 100 bbl. at $5.90, as follows : he indorses and passes 
 to you Harold Mason's note for $300, on which interest at 6% has accrued 
 for 52 da., and his check for the balance. 
 
 a. Render an account sales : commission, 10% ; freight, $13.50 ; storage, $2.50. 
 
 Send your check for the net proceeds. 
 
 b. Make each entry on your books from the receipt of the consignment to 
 
 the rendering of the account sales. 
 
"YC 45037 
 
 54! JT5S 
 
 UNIVERSITY OF CALIFORNIA LIBRARY