Abstract The article discusses the disposition of special post-war reserves at the close of World War II. In the article, interest was centered primarily in only one of several types of reserves. What 134 large manufacturing corporations did with the special reserve created to cover post-war reconversion costs has been shown. In recent years there has been some criticism of methods and motives used in the creation of reserves, especially those set up for contingencies. Accountants are beginning to suggest that, because earned surplus is itself available for contingencies, there is no reason for creating a contingency reserve. While there was no need for the unused reserves and those created as a matter of conservatism, the post-war reserves that were used properly would not be subject to the above criticism. The purpose of the post-war reserve is quite different from that of contingency reserves. The purpose of the post-war reserve is the proper assignment of costs to periodic revenue. If costs are assigned properly to periodic revenue, there will be less distortion of annual income. A reserve created for such a purpose and used properly, is undoubtedly a necessary accounting procedure.

Abstract This article focuses on the lecture system in elementary accounting. The lecture system has been used for many years in elementary accounting courses, especially when a large number of recitation sections are involved. If comparable coverage and results are to be obtained in a course enrolling many students and composed of numerous sections, coordination of the course appears necessary. The lecture system seems to be the most satisfactory method of attaining the degree of coordination desired. Although the lecture hour can become subject to misuse, it should be used to introduce subject matter, to discuss controversial points, to aid in the development of more difficult concepts and principles, to review material already covered, and for the purpose of examinations. Examinations in a multi-section course can become a disagreeable task to an instructor teaching several sections, as well as a source of inequity from the viewpoint of the student. The advantage of the so-called departmental examination given under the lecture system is the fact that all students in a lecture group take the same test.

Abstract Students of accounting commonly have trouble with the so-called "goodwill method" of recording the admission of a new partner into a firm. Under this method, wherein the recorded capital equity of the old partners is not to be reduced and the credit to the new partner can be no less than his investment, there are the two problems of calculating the amount of goodwill to be recorded, and determining which partner or partners' capital accounts are to be credited when the goodwill is recorded. The determination of the amount of goodwill involved is approached by first calculating two amounts, both called recorded capital. The amount of goodwill involved is determined by subtracting what is termed invested capital from the larger of the two amounts of calculated recorded capital. Invested capital is the sum of the existing partners' capital equities before any adjustment for goodwill plus the contribution of the new partner. In presenting the material, the instructor must keep in mind that the students are not accounting majors. Further, he must remember that the students have enrolled in order to gain some practical knowledge. Due to the subject matter the course is difficult. Its usefulness, however, makes it a very popular elective.