Part 55

19. What is a manufacturer's agent, and how does his business differ from that of a commission merchant or broker?

20. By what term is a consignment of goods to a broker known on the books of the shipper? In what name is an account opened to represent the consignment?

21. How is the above account made up? When is the account closed, and to what account is the balance transferred?

22. What is an account sales? When an account sales is received without a remittance, what account should be opened, and what does it represent?

23. When a broker receives a shipment of goods to be sold on commission, by what name is it known on his books? In what name is an account opened?

24. If a broker renders an account sales without a remittance, to what account should he credit the net proceeds? Why?

25. If a broker has on hand any unsold consignments when his books are closed, do the accounts represent assets or liabilities? How would you determine the broker's liabilities on account of consignments?

26. Name the books used by a produce shipper, and explain how each is used.

27. What is a shipment ledger account, and how is it made up? What is a profit and loss on shipments account?

28. In what way does the journal used by a shipper differ from the one used by the average merchant?

29. How is the trading account of a shipper made up?

30. Prepare trading and profit and loss accounts called for in Art. 48.

31. Name and describe the uses of the books used by a commission merchant.

32. Prepare trading and profit and loss accounts, and balance sheet called for in Art. 57.

33. What is a storage business, and for what purpose is it conducted?

34. What is a warehouse receipt, and what does it represent?

35. Explain what is meant by simple storage, and average storage.

REVIEW QUESTIONS ON THE SUBJECT OF SINGLE ENTRY—COMPARATIVE STATEMENTS

1. What is the distinctive feature of single entry bookkeeping? In what respect does single entry fail to fulfil the functions of bookkeeping?

2. What books are usually used in single entry? How does the single entry cash book differ from that used in double entry?

3. In posting, what features distinguish single entry from double entry?

4. How can the accuracy of single entry books be proved?

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