33. We draw on George Johnson for $650.00 @ 60 days sight. He accepts the draft, which we discount at our bank 3 days later, the bank charging us 7% interest. What entries are necessary? 34. We accept a draft from John V. Farwell & Co. for $416.00 payable in 90 days. What is the entry on our books? What is the entry on the books of Farwell & Co.? 35. We pay a sight draft drawn by Cable Piano Co. What entry? REVIEW QUESTIONS ON THE SUBJECT OF SINGLE PROPRIETORS' AND PARTNERS' ACCOUNTS 1. What books are generally used in a small retail business? What is a blotter, and how is it used? 2. What is the special feature of the journal ruled ledger, and of what advantage is such a ledger in a retail business? 3. In a single proprietorship, what does the proprietor's account represent? 4. Name one good reason why withdrawals of the proprietor should be charged to a personal account. 5. When the books are closed, what account absorbs the profit or loss? 6. What is meant by _taking an inventory_, and what processes are involved? 7. Should an inventory be based on _cost_ or on _selling_ prices? Why? 8. What is meant by _closing the books_? 9. In a retail business, such as is discussed in the text, what regular accounts are closed into trading account? 10. What does the balance of trading account represent? Into what account is this balance closed? 11. What does the difference between assets and liabilities, as shown by the balance sheet, represent? In a single proprietorship, with what ledger account does this balance agree? 12. George Thompson commences business to-day, with assets consisting of cash, $1,650.00; an account due from Henry Watson, $84.60. His transactions consist of purchases on account as follows: From Henry Karl & Co. $460.00 " White & Black 320.50 Purchases for cash 129.00 Sales for cash 87.50 " on account 274.80 Paid on account to Karl & Co. 300.00 Collected on account 124.80 Paid for sundry expenses 63.70 Inventory at close of business 655.50 Open the books, enter the transactions in journal, cash book, and sales book, and make all postings to the ledger. Prepare a trial balance, At the close of business, prepare a trading account, close into profit and loss, and close net profits into proprietor's account, Prepare a balance sheet, 13. What is a sales ticket, and for what purpose is it used? 14. What benefit is derived from keeping departmental purchase and sales records. 15. Prepare suitable forms for departmental purchase and sales records for a business divided into three departments. 16. What is a partnership? 17. What is the purpose of a partnership agreement? 18. By what names are the different classes of partners known? 19. On what basis are the profits of a partnership usually divided?