Mr. Clark is a shipper of produce, and a retail dealer in coal. His assets and liabilities are as follows: ASSETS Cash in bank $1,262.78 Inventory, Produce 685.00 " Coal 747.50 Geo. White--Open account 21.00 F. H. Russel " " 7.00 Henry Brown " " 8.00 O. L. Duncan--Note due Dec. 1 27.00 $2,758.28 -------- LIABILITIES Iowa Coal Co., Des Moines, Open acct. $120.00 Lehigh Coal Co., Chicago, Ill., Open acct. 325.00 George Hardy, Open account 60.00 505.00 -------- As he wishes to know how much business he is doing in each department of his business, he keeps accounts in the ledger with both produce and coal instead of one merchandise account. In the sales book, one column is used for coal sales, and one for produce sales. No purchase book is kept, all purchases being posted from the journal or cash book. --Oct. 22-- Bought from David Andrews, for cash 200 bu. potatoes @ .42c $84.00 Paid by check No. 11. --22-- Sold to Albert Long on account 2 tons run of mine coal $3.25 6.50 --23-- Received from Geo. White on account Cash 10.00 --24-- Sold to Taft Produce Co., Des Moines, on account 148 bu. beans 3.10 458.80 --24-- Drew from bank for petty cash 10.00 Check No. 12. --25-- Sold to Geo. Hardy on account 1½ tons nut coal 9.00 13.50 Gave him check No. 13. 46.50 --27-- Gave to Lehigh Coal Co., Chicago. 60-day note 200.00 Check No. 14. 125.00 --28-- Taft Produce Co. paid sight draft through Iowa National Bank 458.80 --29-- Accepted 30-day draft made by Iowa Coal Co. 120.00 Payable at Ames State Bank --30-- Deposited in Ames State Bank Draft Iowa National Bank 458.80 Cash 10.00 --30-- Paid for repairs to stove, cash 1.20 --31-- Sold for cash, ½ ton egg coal 4.50 [Illustration] [Illustration] [Illustration] [Illustration] [Illustration] [Illustration] [Illustration: ACCOUNTING DEPARTMENT IN THE NEW YORK OFFICE OF J. WALTER THOMPSON COMPANY] THEORY OF ACCOUNTS PART II CLASSES OF ACCOUNTS