5. To determine the profits of a business whose books are kept by single entry, what steps are necessary? What are the steps in closing single entry books? 6. On a certain date the assets and liabilities of Henry Lamson are as follows: ASSETS Cash $452.00 Due from sundry debtors 77.20 Merchandise per inventory 764.50 LIABILITIES Due sundry creditors 142.00 The following transactions are recorded: Sales to sundry persons on account $46.71 Bought from sundry persons on account 339.54 Sales for cash 96.90 Received cash on account 64.00 Paid cash on account 133.50 Paid cash for rent 37.50 Paid cash for clerk hire 8.00 Record these transactions in single entry books; prepare proof of ledger and statements of assets and liabilities, the merchandise inventory at end of period being $983.75. Do the books show a profit or a loss, and how does it affect the account of the proprietor? 7. Explain, briefly, the necessary routine followed in changing single entry books to double entry. 8. H. P. Hayes established a small factory upon a borrowed capital of $10,000. The undertaking was a success, and at the close of the first year his financial condition was disclosed by the following particulars: Bills payable $4,000.00 Accounts payable 6,574.50 Cash 1,752.50 Accounts receivable 12,694.18 Inventory 4,765.90 Salaries 3,500.00 Sundry expenses 435.50 Manufacturing expenses 11,759.50 Mr. Hayes kept his own books during his first year in business, but did not keep them by double entry. His sales for the year amounted to $35,643.25, and his total purchases amounted to $16,076.07. At this point Mr. Hayes admitted as a partner, A. B. Andrews, who contributed $10,000.00 to the partnership upon the agreement that the partners should share equally in the business. A bookkeeper was engaged to keep the books by the double entry system. From the particulars given, make a trial balance and the necessary journal entries to complete the change to the double entry method. Ascertain the interest of Mr. Hayes in the business, and credit his account with the same.