Excess of Capital is $3,000,-interest thereon at 5%

$150.

Smith and Jones share profits at 7-12 and 5-12 respectively. Smith pays of this interest 7-12 or $87.50; he is credited $150— $87.50 $62.50; and Jones is debited the same amount.

No mention is made as to charging interest on their respective drawings, so these are not considered in calculating same.

Question 10.-John Staunton starts in business with a Cash Capital of $9,080 on January 1st, 1896, and the following is a summary of his accounts in his books for twelve months trading:

CHAPTER II.

BOOK-KEEPING.

Question 1. From the following list of accounts draw Profit and Loss account in skeleton, and also Balance Sheet, placing the accounts in the division to which they properly belong, and on the proper side of each account: John Smith, Capital Account; Jas. Williams, Capital Account; Real Estate, Toronto; Expenses; Travellers' Salaries; Insurance; Interest; Cash Discount on Sales; Cash Discount on Purchases; Travelling Expenses; Taxes; Repairs; Advertising; Jno. Smith, Drawings Account; Jas. Williams, Drawings Account; Merchandise; Stores; Wages; Bank Account; Bills Receivable; Bills Payable; Investment in Commercial Cable Stock; Accounts Receivable; Accounts Payable; Trading Account.

Question 2.-A Merchant in Midland gives his Book-keeper the following memo:—

Shipped to A. B., Buffalo, Cargo Lumber per "Lothair," Lake Freight, $1.25 per 1,000 feet of Lumber, eight thousand shingles to be counted as equal to 1,000 ft. lumber. Bill of Lading was for 150,000 XX shingles, 600,000 XXX shingles, 232,000 ft. Culls.

Sold shingles to Jno. Smith, Buffalo, XX shingles at $1.05, XXX shingles at $2.05, F.O.B. Buffalo, and delivered the lumber to Jno. Williams, to sell on my account and risk at 2% Commission. Charge the lumber at $6.00 F.O. Vessel, Midland. Open accounts for Lumber and Shingles, and Journalize the transaction so that the Shingle Account will show average price shingles, F.O. Vessel, Midland.