Common-Sense Method of Double-Entry Bookkeeping e-bog

Whilst the greatest effort has been made to ensure the quality of this text, due to the historical nature of this content, in some rare cases there may be minor issues with legibility. 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 GBP5; Prior owes me GBP6, Richards GBP10.<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 GBP5, I write GBP5 on the Cr. side of his account. The Cr. side is the side in his favour. He has, some time previously, paid away GBP5 to me, or sent me GBP5 worth of something, and is my Creditor for GBP5. 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.