| " Trade creditors | 4,961 10 0|| | " Stock on hand | 5,751 3 10
| " Bills payable | 2,620 18 4|| | " Trade debtors | 3,842 7 9
| | || | " Bills receivable | 7,468 14 3
| | || | " Cash at bank | 4,169 5 5
| +-------------++ | +-------------
| |L22,500 15 6|| | |L22,500 15 6
------+-------------------------------------+-------------++-------+-----------------------------+-------------

_Dr._ A.B., CAPITAL ACCOUNT _Cr._
------+-------------------------------------+-------------++-------+-----------------------------+-------------
| || 1906. | |
1906. | To Drawings account | L1,500 0 0||Jan. 1 | By balance from last account|L15,010 1 7
Dec 31| " Balance carried down | 14,918 7 2||Dec. 31| " Profit and Loss account, |
| | || | being net profit for the |
| || | year ended this date | 1,408 5 7
| +-------------++ | +-------------
| |L16,418 7 2|| | |L16,418 7 2
| +-------------++ | +-------------
| | || 1907. | |
| | ||Jan. 1 | By Balance brought down |L14,918 7 2
------+-------------------------------------+-------------++-------+-----------------------------+-------------

In the foregoing example the customary method has been followed of
deducting withdrawals of capital from the capital account and of adding
profits thereto. Sometimes, however, the balance of the capital account
remains constant, and the drawings and ne