Exercise No. 11.
Write out the notes and acceptances on Jan 4, 8 and 20. Journalize ; post Bills Receivable Account, leaving room to continue with Ex. No. 12. Find the balance on hand.
St. Catharines, January 2, 19-. Received from the Proprietor as an investment, A. Dame's note $200.75, and R. Smith's acceptance $300.
Sold T. Marshall, Niagara Falls, on his note at 10 days, Mdse. $230.25.
8. Received from B. White, Hamilton, on account, his acceptance at 30 days for $160. 15. A. Dame paid his note due to-day, $200.75. (Gave it back to him.)
17. Received cash for T. Marshall's note, $230.25.
20. Sold C. Hurst, Toronto, on his acceptance at 60 days, Mdse. $150.60.
31. R. Smith paid his acceptance for $300.
Exercise No. 12.
Write out the notes and acceptances on Feb. 1, 5, 19, 23. Journalize ; post, balance, and close Bills Receivable Account, making it a continuation of the account in Ex. No. 11. What is the balance called `I
St. Catharines, February 1, 19-. Sold M. Roberts, Grimsby, on his note at 10 days, Mdse. $130.50.
5. Received from G. Teagle, Dundas, in full of his account, his acceptance at 20 days for $270.20.
10. B. White paid his acceptance of Jan. 8 in cash, $160.
12. Sold T. Marshall on account, Mdse. $200. (Why no entry for Bills Receivable 4) 14. M. Roberts settled his note of Feb. 1 in cash, $130.50.
19. D. Foster, Hamilton, settled his account with his acceptance at 10 days for $90. 23. Sold R. Smith, Welland, on his note at 1 month, Mdse. $70.50.
28. G. Teagle paid his acceptance of Feb. 5 in cash, $270.20.
2'7. Bills Payable.
The Proprietor's own notes and acceptances are called Bills Payable. They are signed by him as Proprietor, but are payable by the business ; if, however, the business cannot pay them, the law compels him to pay them out of any private means he may have. The following is the Proprietor's note, in which the business promises to pay the amount specified.