A Common-Sense Method of Double-Entry Bookkeeping

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Exercise I. From the following Waste Book entries make separate accounts for Richards, Grover, and Prior, balance each, and state clearly whether the customer owes me, or I owe him anything.<br><br>At the beginning of the quarter I owe Grover £5; Prior owes me £6, Richards £10.<br><br>Fold a sheet of paper lengthways down the middle. Make out three accounts, one headed Grover, the second headed Prior, the third Richards. Write on the top of the left-hand half Dr., Receiving side; on the top of the right-hand half Cr., Paying-away side. As I owe Grover £5, I write £5 on the Cr. side of his account. The Cr. side is the side in his favour. He has, some time previously, paid away £5 to me, or sent me £5 worth of something, and is my Creditor for £5. As Prior and Richards owe me their amounts, they have received them from me, and must be debited with them. Write "To" before debits, "By" before credits.

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