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Js.
MANUAL OF. BOOK-KEEPING
BEING THE
PART OF THE STUDENT
Specially adapted to Simultaneous Teaching,
CONTAINING
A THOROUGH COURSE OP SINGLE AND
DOUBLE ENTRY,
Presented in Question and Answer Fonn« •;>
\ :'' '.,, " 1 '-' '- ■ \ ■'-'■■-V ■*. .'■- -■
TO WHICH IS ADDED
COPIOUS EXEECISES FOR HOME WOBE;
ALSO
A SHORT KEATIES ON COMMERCIAL LAW.
-COO'
ST^, ANNE DE LA PGCA'PlilRB:;
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FIRMIN H. PROULX,
OHIAP f^llSIC S^CHt:-
.4r,
CRAIG W<
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Entered, accordiDg to the Act of the Parliament of
Canada, in the Year one Thousand Eight Hundred and
Seventy- one, by the proprietor, in the Office of the Mi-
nister of Agriculture.
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CONTENTS. .... . ■.•.;!. I
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— - • ■ . . (:. •: .■,'<, \ )
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The method to be used.............. ..\1.» /.'..'...! * '!'#1^
Single Entry. .; . , , J}:^^
General Questions « 9^
Cash-Book 10 <
Invoice-Book 11
Sales-Book v ll.^
Bill Book 12'
Day-Book. 13^'
Ledeer ; 14 ^-
Posting of Books 15;
Index 15 '
Dealings with persons on Credit 1<> ^
Accounts..^ 16-:
Besources and Liabilities 17 ■-
Formulas , 19 ,
Double Entry.
General Questions ., 25
Day-Book '. , 26
Journal 26
Ledger 28
Auxiliary Books .'... 29
Terms Dr. and Cr 31
Accounts 32
" Heal and Representative 33
Bills Beceivable and Papable 34
Real Estate. 37
Shipment and Consignment 37
Merchandise Company Accounts 38
Personal Account 42
Stock Account 42
Principles 44
1
tf CONTKNTS.
General Instructions •• 47
Ledger ^ » ^^
Closing the Ledger 54
Order of Closing •••• 57
General Remarks 61
Economical Method ' 67
Changing Single Entry to Double 76
Process of Changing .'. 78
Practical Hints 81
Detecting errors in Trial Balance 83
Short Treaties on Commercial Law.
Technical Names of Bills 88^
Exchange , 90
Promissory Notes •.... ^4
Negotiable Paper , 96
Diability connected with Negotiable Paper 101
Presentment, &c ». 105
Beads, Bonds, &c *.. 108
Testimony of Accounts Ill
Forms of Bilib, Notes, Draft, &c 113
. Exercises.
Exercises in Journalizing 12&
Exercises in Single Entry 133
Exercises in Doubly Entoy . 1^5
m
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THE METHOD TO BE USED.
w
The design of Hiis book^ io not so much to show
farther development of Book-keeping as a science, bu
rather to simplify the method of teaching it, so that eveu
yerj youog pupils may be able to comprehend and app^
its principles.
It is well known that this science is a most abstract
one ; and that the number of its calculations and length
of its monotonous process, does not heighten the interest
or pique the curiosity of pupih generally. Also the
amount of cautious attention whic^ it demands seeBM 'to
tax fheir mental faculties so much, t&at &e slightest iie-
glect or indifference shown this subject by teachers, pro-
'duces in them a most profound disgust for it in «11 its
bearings. Hence the necessity of encouraging those un-
dertaking its study and of ^rendering their task as light
and as interesting as possible. ^, y. , , •.:?m-y-
It may not be amiss here, to expose some of the many
difficulties experienced in the teaching of this important
subject, as also the means adopted inihisbook to obviate
many of these.
The methods used in most books, treating this subject,
are better adapted for the use of teachers and private
students, than for the simultaneous training of a class Of
pupils for mercantile persuits. The best method is that
-which exercises the mind most, according to its capacity;.
Now to expect that a olass of youths, sent home to oom^
mit to memory, upon a slight explanation from their text
i)ooks, can be expected on returning to have clear ideas
of principles, obscured therein by long explanations, dif-
ificult applications, and tiresome references to formula^,
18 simply preposterous; even those who may have^uadfl^-
t;
MKTllUl*.
stood them the previous day are liable to have very con-
fused notions after refering to such text books. ,.
The main features of this book arc, that it throws all
application and references to formulas totally on tho
teacher for blackboard cxplaration, but furnishes the
pupil with the matter which is to b(< committed to me-
mory, and exercises for application, intended for home
work. Another is the close proximity of question to answer,
greatly facilitating their comparison, while it is time
saving to teacher in the asking of the task. Also the
shortness of the questions and answers will prove en-
couraging to the pupils.
iv II I
Process of Teaching. — After the first or second lesson,
pupils should be practised to the forms of recording
original entries, which is the work of but a few lessons,
whereupon Journalizing should be introduced.
^'^^ Here the teacher should take great pains in explaining
the values of Dr. and Cr. ; and even he should accept of
no signification other than " What costs the concern
value " is Dr., and " What produces the concern value "
is Cr. ; accept no oral expression unless the above signific-
ation is expressed ; for it but too often happens that
pupils, in applying these abreviations, have not the prop-
er value of the terms they indicate. The teacher him-
self should guard, as much as possible, against orally ex-
pressing the words Dr. and Cr. if pupils are to be tho-
roughly drilled into their proper application. ^-^-'^
Supposing the pupils to journalise pretty well, we now
come to what demand« the most cautious attention — -the
Ledger. This book should be more especially illustrat-
ed, on large blackboards ; for this purpose a commercial
, class should have from 80 to 100 square feet of black-
board surface. The pupils should be obliged — under
the direction and supervision of the teacher — to make
out a set on the blackboard something ia this way : — -
Buppose a boy to call the transactions from memorauduiQ
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METlluD. . 7
— (lispensiog with the writing out of tlie Day-Book — the
teacher designates each boy alternatively to journalise
orally (as by far the greater part of the transactions are
simple, but when a long or a strange transaction occurs,
they f«hould make slate work of it), there being two boys
at the blackboard, who, as the transaction is journalised,
respectively debit and credit the Ledger. Continue thus
till the entire memorandum has found its way into the
Ledger. Here an important change takes place ; the
teacher explains the " order of closing " thereupon the
pupils proceed to " close up." This being done, and Led-
ger proving correct, the caller of the memorandum may
now give out the questions referring to the Ledger, which
the teacher should explain in application to the closed set.
One pupil at the blackboard would be sufficient to begin
by ; but as soon aa posting is sufficiently known, it is more
expeditious to employ two.
An ordinary set of thirty entries can be properly
got through within an hour aud a half, and, after some
practice, within an hour. There should also be short
sets given once a week, as home work ; and as soon as
the teacher perceives that his pupils have understood the
process of working out a set, and that it is want of cau-
tious attention, that causes their results to prove incor-
rect, he should begin to abandon all further illustrations,
and oblige his pupils to find out their own mistakes —
not allow them to make blunders for their teacher to
correct.
With the above methoi of teaching, a class of pupils
may be brought, within a year, to have a very fair know
)edge of this important subject.
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QUESTIONS
,':'*
ON
SINGLE ENTRY
BOOK-KEEPING. '
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1 What is Single Entry Book-Keeping ?
Ans,— It is an art which teaches to record sys-
tematically the various transactions of busi-
ness.
2 What is the particular necessity of Book-Keep
ing?
Ans, — It is to preserve a record of such exchanges
as would be otherwise trusted to meniory.
Sem, — A more thorough knowledge of the science em-
braces other most important results.
3 What books are introduced in this system of
Book-Keeping ?
Ans. — The Cash-Book, Invoice-Book, Salee-
Book, Bill-Book, Day-Book, Ledger, &c.
4 Which among these are indispensable in eve
ry well conducted business ?
^n«,— The Cash-Book, Sales-Book, Day-Book,
and Ledger.
5 What do you say of the others ?
Ana* — They depend upon the amount and kind
of information required.
10
CASH-BOOK.
6 What is the Cash-Book ?
Arts, — It is a book wherein are entered all re*
ceipl<< and disbursements of cash.
7 Is this an important book ?
Ans. — Of all books used in business none is
more essential than this ; and no cautions
business man will ever attempt to do with-
out it. («) ^ / T M ^ : •..,./ r
8 When should the Cash-Bock be closed ?
Ans. — It is customary to close up this book ta
the end of each business day, bringing down
the balance as a basis for the next d^y's trans- -
actions.
9 What is shown in the Cash-Book ?
Ans. — On the debtor side rae shown all receipts
,, of cash and on the creditor all disbursements. <
IQ What is shown by the difference between the
«' sides? :i'.>rj-^ 'lu i.iuori c? r'i'^^'nr ■ ^i )f~~.t<^:^.
Ans. — The difference shall be the exact amount
. , of Cash on hand. ., r • •. , ., . . • • ... t\
11 What advantage is obtained by a faithful
record of this book ?
Ans, — It gives a great degree of confidence in •*
business.
Rem. — The difliculty of making pupils understand " why "
Cash is debited when money is received and why credited
when it is paid out " may be obviated by explaining the^'*
original meaning of the word Cash. This word originally
signified Chesty or a place where money was kept instead)
(a) It is true the amount of cash on hand may be easily-
BKCertained at any time by counting it ; but this process*
atlords no test as to improper expenditures or omissions.
(!ASII-B0OK.
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of the money itself. Now, if I place all the money t re-
ceived in a certain box, I could at any time tell, from my
books, how much there was in it by making tbe box Dr.
for all sums placed in it and Or, for all sums taken out.
We treat Cash in a manner precisely similar. . .
12 How many forms of ruling the Cash-Book are
; '.' ' there? •"■ '''"'' /■'"' '''""'' ''"'''■ '^'^ '^^ '
Ans. — There are two forms and both are ruled
. , alike ; but the one takes up the two facing
sides (the left for cash receipts and the right
for disbursements) ; whereas the other is con-
fined to one side only, with debit and cred-
it columns contiguous, r, liiloi -hH n{^:) l^j
13 What does the Invoice-Book contain ?
Arts. — It contains a minute description of all the
merchandise with which we are concerned.
14 From what are entries in this book made.
15 Are our goods and the goods of others (e. e.
goods on commission ) entered in the same
J; way in this book ? ,: * ^ »
Arts. — ^They are not, the ambtints of our goods
are extended into the money columns, where-
as the amount of other goods are not extended^
16 Can the cost of merchandise be ascertained
f •;ihji Ifrom this book ?; if -.>..,}> ,■ ?»<. : -* ,,, ,> . i „ -, »
.4?M.— Yes, since the amounts are carried forward
from page to page the sum tptal on the last
page must show this cost. . ._| ^^j^ ^^^.^,y
17 Whatas the Sales-Book ? n Vr^T *
Ans, — It is a book which contains a description
, ^ of all the merchandise we sell or pass out of
our possession. . " ->^..-.
18 When is an entry made in this book ?
12
SALI8B00K.
^n«.— As soon as the purchaser has selected his
goods, and from this entry his bill is made
out.* •
19 Of what should the entry consist?
Ans, — Of the quantity, quality, and price of the
goods sold.
20 Do you make any difference in the entries of
your goods and the goods of others in the
Sales-Book ?
An^, — Yes we do, but in entering the sales of com-
mission goods we do not extend the amounts
into the money columns.
21 Can the total amount of sales be ascertained
from this book ?
Ans. — It cannot, as ih^ retail cash sales are not
entered in the Sales-Book.
22 How is the amount of sales found ? '^^ a. -
Ans, — By reference to the last page of the Sales-
Book for the credit sales^ and to the Cash-
Book for the retail cash sales.
Rem. — Tke Sales-Book may be so kept as to post the
credit sales directly to the personal accounts. This affords
a great saving of time, and is quite as satisfactory.
' *• * » Jr. /
^.i.
28 What does the Bill-Book contain ?
Ans. — It contains a description of all notes, drafts*
and other species of paper, agaitist us and in
our favor. ... - ^ >. Wr
24 Name the two kinds of notes ?
Ans. — Bills Receivable and Bills Payable. vi
25 What is meant by Bills Receivable ?
Ans. — Notes that are in our favor, the amounti
of which we are to receive-
BILL-BOOK.
13
his
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ries of
in the
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lounts
ained
re not
Sales-
Cash-
lost the
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ountf
36 What are Bills Payable ?
Ana. — Notes which are against us, the aiQounta
of which we are to pay.
27 Describe the raling of the Bill-Book ? .
iln^.—Each page of this book shoald be divided
into twelve spaces, and each space of a due
proportion to the matter to be inscribed.
28 What is a proper caption for each colanm in
this book?
iitw.— For the Ist. The Number; — 2nd. When
received * ; — 3rd. For what received ;— 4th.
The drawer or Endorser ; — 5th. The Drawee
6r Maker ;— 6th. The Date ;— 7th. The Term ;
—8th. When Due ; — 9th. and 10th. Amount;
•-^llth. When Disposed of; — and 12th. How
Disposed of. ( See example Page 20).
Rem. — ^The Notes Received are labelled and put away
in a secure pl&ce ; ail information relating to them is obtain-
ed on reference to this book without examining the pack*
ages of Notes.
29 Describe the Bay-^ook ?
Ans.-^lt is a book which contains statements of
all transactions which give rise to persons
owing us, or to our owing them.
30 What is the form of record used in the Day-
,^ Change Received for Issued and you shall have th«
pipper caption for Bills Payable.
It is usual to put the last day of grace in the <' When
Due'*' column. /;: ■■ -■'•' -:^-'---' -i- ■: --^ . ,-:.- ■> -..^ r-
For convenience and distinction^ each Note is namb#i«d
when received or issued, commencing No. 1, 2, 3, &c* foi
the receired^ and commencing in alike manner for the
14
DAY-BOOK.
•>')
' Book?
Ans. — It is direct and simple : first expressing
ihe name of the person to be debited or
* credited on the Ledger, and next the consid-
* eration and amount together with the fact of
"Dr. "or"Cr." ...
31 To where are these records transferred ?
Ans. — They are transferred under appropriate
J Ledger accounts, and thus exhibit i]ae result^
.' of the transactions, so far as persons are"
e concerned.
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32 In what books are entered long details of goods
bought or sold ?
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p1 t1i"5 jxt*
Ans. — In the Sales and Invoice Books which are
designed to show the particulars in regard
'< to the quantity of Merchandise bought or
- sold, and never in the Day-Book.
32 Describe the Ledger ?
Ana. — This book is used to exhibit the relation in '
which the various 'persons with whom we;^
-■■ deal on account stand to our business; and
'^ contains, therefore, only personal accounts.
33 What is the object of the Ledger? ^i -" '
Ans. — It is to show in one view all concerning a
person.
^m. — The sums which the person owes us, and which
we owe him, are scattered from one end of the Day-Book
to the other j but in the Ledger all those sums are drawn ^
on one page, and, by subtracting one side of the account
from the other we obtain the balance which is due to him'
or us.
/ I
19 t;9Viac»ai iJ'4/47/
34 How should the Ledger captions be written ?
Ans. — In a simple but bold text.
LEDGER.
15
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35 I^ an entry has been made on the wrong side
of a Ledger account, should it be erased ?
Ans. — It should not, but the sanne amount must
' :• be entered on the opposite side of the same
account " To "' or " By error, " and then the
entry made as it should have been at first.
36 What is meant by Posting the Books ?
Ans, — It is simply collecting and transferring each
person's account from the Day-Bpok to its
appropriate page in the Ledger.
37 In what order should Day-Book enl^'^s be
posted?
Ans. — They should be posted in the order in
which they occurred. - v
38 When there is more than one item in the Day-
Book transaction what expression is entered
in the Ledger? . " '' ** '
Ans. — The amount should be entered with the
expression " To " or " By Sundries. "
39 When there is but one item in the Day-Book
transaction what should be entered in the
Ledger ?
Ans. — It is better to specify the item itself, r v
40 What is Index? ^^
Ans. — It is a formula from which we are enabled
to turn directly to any account in the Ledg-
41 Describe the Formula ? • - ...
,j4n5.— It consists of several pages, being divided
into lettered spaces, into which are entered
the names of all Ledger accounts each being
under its own special initial, and having its
16
INDEX.
Ledger page attached thereto. i
Rem. — The begbning pages of the Ledger are usuallj
for thia purpose. Sometimes a whole page is allotted to one
ioitiai and sometimes the single page is divided so as to
contain seTeral^ as in the formula page 20. -''
42 How many conditions are ih^re pertaining to
f , Dealings with Persons on Credit ?
Ans, — There are but two conditions, viz : that of
owing^ and that of being owed,
43 What are these conditions as compared with
each other ?
Ana, — They are exact counterparts, and, so far as
they are equal, cancel each other.
44 How may these opposits facts be b'ist ar-
ranged ?
Ans, — Under the names to which they pertain and
in a way as not only the facts themselves, but
their relative results may be ascertained at
a glance.
45 What is such a form called ?
Ana, — It is called an Accountt
46 How may it be defined ?
iln^.— It is a statement of our dealings with an-
other person or vice versa,
47 How many sides has an account ?
Ans. — Two : a Debtor and a Creditor.
48 What is shown by the Debtor side ?
Ana, — Upon the Debtor side is shown what is \
owing to us. i
49 What by the Creditor side ? ^ i: i
Ana, — What is owing by us.
f.
65
AOOOUKT.
17
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'{K> If the Debtor side be the larger, what will
the difTerence express ?
Ans. — It will express an amount belonging to us*
61 What if the Creditor side be the larger ?
Jlns.-^The difference will express an amount
which we owe.
53 What will the account represent in the former
case ? What in the latter ?
Ans,-^lt would represent property or resources,
and in the latter a debt or a liability.
63 What is an indispensable requisit in any state-
ment showing the business ?
Ans. — Any statement showing the condition of
business must embrase a list of its resources
and liabilities, . . .
64 What is the sure test of superiority in a sys-
tem of Book-Keeping ?
Ans. — Any system which will enable us the more
^ cfasily to get at the resources and liabilities^
must— other things being equal — ^be the best
system,')r-;. .. .\ .: .'' \^ " .' •
65 What class of BesoUTCeB is found in the
Ledger ?
iin5.»^-^Balances due from persons.
66 What, in the Cash-Book ? K
iin^.—- Balance of Cash on hand. : »
57 What, ascertained only from inventory ? -: rn
Ans. — ^The merchandise on hand. ' ' -- • • ' " >**
58 fjow are our Liabilities ascertained 9 'I
iln9,-— From the Ledger accounts.
58 What is the rule for ascertaining the Present
Worth oidk concern? > ''\ , *
t -u^
■00
Ui^
:. 3V
18
ilr-v-
RESULTS.
ft
Ans, — To ascertain the Net Capital, or Present
Worth, subtract the liabilities from the re-
sources.
60 What, to ascertain the Gain during business ?
Ans. — Subtract the Net Capital at commencing
from the Net Capital at closing.
61 How must a change in business be marked ?
Ans, — It is a settled principle in accounts that
whenever any change in business occurs,
" the existing resources and liabilities of tho
concern should be made apparent. ^ , .^
62 What do you conclude from this ? '
Ans, — That the proprietors' accounts should re-
present their net investment at the time of the
change,
63 At what periods in business is it proper to
show the resources and liabilities.
Ans. — At financial eras, such as the close of a
fiscal year, or any other important event
which makes it necessary to exhibit on the
main books the exact condition of the busi-
ness. .......
64 Upon what grounds has Single Entry been
Condemned? ^^ ^ u . . j ri tu j^iw^
ilns.-*-Upon the grounds that it is wholly inadi-
quate to the demands of business, and there-
fore unworthy of consideration.
65 Is the objection valid ?
Ans. — It is not, as a very extensive business may
be conducted with perfect safety, having no
better record than that afforded by an intel-
ligent and faithful application of the princi-
ples of Single Entry Book-Keeping.
/ I;'
. . . •■
S.t<.>
mh..
.-. '.,»
^k
i^
5njj/,6irr— ,^;tk
m
I
s
:
1
INDEX.
19
J
I
B
£
Ki^
■*'■ ' .7.,
V' '
•; : K ■.■■:...
Q
H
*
1
—I r*
M •
N
i —
:'•* '!
•-•J
w
5 *.♦ '. '"
I I f b I'li.
I
%
{
/2em.— It is unnecessary to place all the formulas of rul-
ing in- this book. A teacher who .values his time: and. that of
his pupils will always provide them with properly ruled
M'
copies.
*■■< '■M »t'>tf.t.*«
2*0
'
r
21
QQ
CO
M
GQ
P
O
O
8
. i
I
'»>
> I ;
•I
i.^.
«
525
O
O
w
H
o
QQ
H
5z;
H
OQ
OQ
O
O
o
OQ
O
?»'«
6 4<^
. !
$
6q oo^
rHW
•»i»"Wi"»l«»»"
22
MEMORANDtM.
Jan. 3. Invested in Business, $2000 ; Paid Expenses to
New-York, $37; Bought Merchandise, $1805; Paid
Freight on Merchandise, $124.— 4. Bought Wood of
Westfall, $8 ; Paid Postage, 35c ; Received for Mer-
chandise Sold this day, $5.84.— 5* Paid for Sundries,
$1..57; Paid for Sawing Wood, $3; Paid for Cartage,
$1.75 ; Received for Sales this day, $4.92.
Cash-Book.
Dr.
Cr.
1868
1
i
Jan.
To Stock
2,000
00
3
By Expenses \o New- York
37
00
•
" Mdse. of Sund. Persons
1,805
00
" Freight on Merchandise
124
00
•
4
^* Balance on hand
*
2,000
00
34
00
2,000
00
'
To Balance brought down
31.
00
. . t
By Wood from Westfall
8 00
" Postage
'6^
To Mdse. Sales this day
5
84
.J j
5
By Balance on hand.
•
•
31
49
1
• 39
84
39
84
To Balance brought down
31
49
By Sundries
1
57
" Sawing Wood :
3 00
" Cartage
1
75
To Mdse. Sales this day
4
92
By Balance on hand
41
30
36
09
3(>
41
(This is to be continued by the student. See next page
continuation ol memorandum.)
OASII-BOOK.
2a
7
5
9
1
Jan. 6. Paid Advertising in Western Whig^ $3 ;
Paid for Advertising in Wayne Co. Herald^ $3.50 ; Paid
for Postage, 25c ; Received for Sales of Merchandise this
day, $10.27.-7. Paid for Blank Book, $2.75 ; Paid for
Merchandise, $5.86 ; Paid Postage, 30c. Received from
Sales of Merchandise this day, $12.18.-8. Peid for
Merchandise, $4*.74< ; Paid Express Charges, $1.25 ; Paid
for Personal Expenses, $2 ; Paid Postage, 20c. Received
for Merchandise sold this day, $11.74. — 10. Paid for
Personal Expenses, $7 ; Paid for a Blank Book, 75c. Re-
ceived for Merchandise Sales this day, $15.744. — U. Paid
for a gal. of Camphene, 56c ; Parallel Rule, 50c ; Mer-
chandise, $7.50. Received for Merchandise sold this day,
$9.63— 12, Paid for Postage, 25c ; 1 Gross Gillott's Pens,
$1.25 ; Merchandise Bought at Rochester, $25, Receiv-
ed for Merchandise sold this day, $14«.55. — 13. Paid for a
Bottle of Red Ink, 13c ; Hand-bills, $2. Received for
Merchandise Sales this day, $12.64*. — 14. Paid for Re-
pairing Blinds, $2.50 ; Wrapping Paper, $3 ; Postage,
10c ; Envelopes, 12c {Wafers, 10c. Received for Mer-
chandise sold this day, $10.13. — 15* Paid for Express
Charges, $1.50 ; Postage 15c. Received for Merchandise
sold this day, $7.96.-17. Paid for Cartage, 25c,
-000-
e
• ■%■■
• ' ! I.
r>
X '■-'"■
■4 •
-v' •,/ r#S .^
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!
i
. . '. . ' ' ,.'
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1 w
2 li
3>
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6
Ai
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6
A
.
t1
1
QUESTIONS
ON
DOtJBLE ENTR
BOOK-KEEPING.
000 —
1 Wh'^t is Book-Keeping t
Ans — Book-Keeping is a faithful and systematic
record of bu«titiess transactions.
2 In what do business transactions consist 7
Ans. — All business transactions consist in an
exchange of values.
3 What hat; Book-Keeping to do with exchange
of values ?
Ans," h is the science by which these exchanges
are recorded and their results shown.
4 How nnaiiy methods of Book-Keeping are there 9
ilii«.-— There are two : Single and Double Entry.
5 Which is the better method ? Why ?
Ans,^ Double Entry ^ on account of its better
facilities for developing results.
6 What is the characteristic feature of Double
Entiy9
Ans^ — It consists in the entering of each trans-
aciion into ttoo or more Ledger accounts.
7 Why must each transaction be entered into
two or more Ledger accounts ?
Notes— -The object of the black type ie simply to indioate
tho subject. The quentions to which the continuous nuinberi
art attached are intended as initiatory ; those in small
prUnt should not be studied before the student is thoroughly
Mqotinted with the initiatory put'
immm
-.^
n
vBOO^IC^BPIKQ.
j^5. — Because two or more persons (or things)
are affeclfid ihereby.
8 What are the lhr<^e main books used in Double
Entry ?
Ans. — They are the Day Book, Journal, and
Ledger.
9 Describe 1 he Pay-Book? ..
AVfS' — I' is 'he hook of origi>ial entry, and con-
tains a consecutive hisioiy of all 'h^ Iraiis-
actions in ihe dale and order of their occur-
rence. ' • . • •; •
• I i • ' • f ■ ^ *, *
10 What should be the character of the Day
Book expressions?
Ans. — They should be plain, concise, and unequi-
vocal. .
!'
(1) Why is the Day Book alone produced in Court t ^
A^ltS* — In as mucii as the records in ibi'* book are sup-
posed to be in.td^ wliiMi HiH transactions and all the
cireuinsiances connected thrrewiih are fresh in the
rtiind. . — • »i -
(2) What other irnportanoe has it t • ; •
iftns. — It is tht: basis of ail the results shown by the other
* books. . \- : tLv
(1^) From what sources do Day- Book entries rqme ?
AnS' — ^Few transactions appear Cir^l in the Day-Boi'k,
f but are from various sources, viz , Inrpic^ ;Book,
Sales-Book, Cash-Book, Bill-Book, Jiv. ) h'.;
11 What is the special use of the Joumal;?
4iM*'7r>It8 special use is to decide qpQn.|^J[^e
\ proper debits and cfedita, myQiy9d iiiiti|<ih
JOVBNAL.
27
transaction preparatory to their entry upon
the Ledger ; in this consists the theory of the
science.
12 Ij* il sometimes combined wilh another ?
Ans. — Il is someiimes combined wilh the Day
Book and sometimes entirely omitied.
(1) When omitied how is the labor performed ? . \
ilws.— Meiiially. , ■ '. N
\ /
' - \\ i' —.i-\K
13 How is this combination called ?
^/i5.- It is termed " Jomnal-D;jy-book. !' V*
(1) What advnntflg<»s his tl)f> Dny Book in Journal form
Over thf Hi>toric«l Day Book 1 .-J» ^:',vr^r ,•or^
Ans. — Th>, < lii» f udvantrtgp."* are, in dispensing with a se-
.'V parate Jonnal, ami in bringing the Day-Book and
Jouiiml tiilrits togetluT tlie brtler to identify them.
(2) What objection can be urged against it ?
Ans. — The only objertion is the diffienlty of making the
enlry iutelligible as well as syiniiietrical.
(3) Did the Jotiinal come into qse with the Day >Book
and i-iedger ' ' •• ••*.'.
Ans. — It did not, but was afterwards introduced to aid
those who coidd tfOt perform its labor mentally.
(4') Is the term *' Simtlries '' used as a Ledger account T
Ans. — No, it is never used as a Ledger account.
(5) For what purpose then is it u^ed ?
Ans. — It is used merely as a caption for the Journal
entry, indicating that the entry consists of sundry
debits and sundry credits*
(6) How will its convenience be most apparent ?
^ns* — la porting to the Ledger, as it affords tn exprtt*
ftion to be entered under the Ledger tKI^.
>>/.
1l
fs
iouii^AL.
(7) How manj kinds of Journal entries are there t
Jln5.-— There are renilj four kinds of Journal entries^ eacb
requiring a different expression.
(8) Name the first 1
Ans. — Those consisting of one debit and one credit.
(9) Name the second 1
Ans, — Those consisting of one debit and several credits.
(10) What is the ihird ?
Ans» — Those consisting of several debits and one credit.
(11) What is the fourth 1
Ans, — Those consisting of several debits and several
credits.
(12) Why is the word creditor (Cr) never seen in the
Journal ?
Ans, — For the reason that the word debtor (Dr) dis-
tinguishes the debtois ; and theie beirg only two
kinds, one being bhowny the others must of course be
creditors, : ,v t
p3) Can special books of entry be so used as to dispense
with the Journall ';• a"
Ans, — Yes, each of the auxiliary books may be so kept
as to po»t thence to the Ledger. — (See Economical
Method, page ) ' ",■ ' ■' ' ■ •;>
14 What 18 the character of the Ledger ?
An$, — Its character is 9uch that all the other books
are subservient to it.
15 What are shown in the Ledger ?
Ans* — In the Ledger are shown the results of all
the transactions^ arranged under distinct
heads called accounts.
1*.
r
)^-\-
LIDGIB.
20
t.
le
is-
ro
be
se
Pt
al
3[
f
(1) What grand division d« you make of the Ledger in
reference to debit and credit 1 /
Ans. — Ail the sums on the credit side of an account in
the Ledger, are sums that the concern ow6s, and
those on the debit, ar^ sums owned to the concern.
It is only the balance or difference, which is to bt
paid.
(2) How do you divide a Ledger for use ?
Ans.^In opening; accounts on the Ledger, we give to
each a certain space according to the business that
We thii»k we may have wiih tlie person or property ;
and we g**nerally l^ave some forty and fifty of the
beginning pages of the Ledger, for private accounts,
such as Ca>l), Merchandise, Bill» Receivable, Bills
Payable, Loss and Gain, Interest, ComroisMon, &c«
16 In what do AuxQiary Books consist ?
iln«.— .They consist principally in giving a detail
of some of ihe Ledger accounts.
17 Upon what does the character of these books
depend ?
Ans. — Upon the amount and kind of information
# required.
18 Mention some of the Auxiliary Books ?
Ans. — The Casjh-Book, Biii-Book, Invoice-Book^
f Saie!$-Book, &c.) &c.
11
it
(1) Which are the most essential ?
iln5.— The Casb-Book and Bill-Book.
.'T
• V:
19 For what purpose is the Cash-Book used ?
Ans,— h is Used to give a detail of ail cash
ceived and all eash disbursed.
1
80.
CASQ^OOK*
(1) How^often is the Cash-Book closed ? . -
Ans.—T\ie Cash-Book is closed at tae end of evefjr, bus-
in* ssdiy.
(3-) With what must the difference between the sides
agree ?
Jinx. — It must aaree with the cash items on hand. . ,
(3) \Vh;»l is done willi ihis (liffVrt'Uce ?
Ans. — ^Jt is brought down as a basij^ for the next dayV
bu.sirieMS.
(3) Wlrtt is ihe advantnge of this Hoily tost ?
Ans. — It is the best safeguard agaiii>t tf ror^ and omissions.
••»;
. )
20 Of what importance is Uie Bill Book ?
A71S. Ii ii* ^^pecially iinporumt ifi Ive'-pirfg the
amount an I ooiid.'iioif ul' noips pay ibie ; and
should fit'V(^r he omitU'-i in any bu-^mt'sx dt^al-
iiiij.s vViiti aok'ie, payable or rectdvuble.
n) With wliHt atconTtt in ihe L-'dger will the uncanc<?li^d^
holes in BiU Bonk Lit^ct'ivable agree ? ^r m ? \_
^«*.— VVidi thf? diff lence beiw<;eu the sides of the Bills
■ Receivable accou nt. '■'■ ■• ' •
/-» • f rr ■
• ■ ■ J • A *•
(2) With whil account will the uncancelled notes in Bilf^
Book Payable agree? '■■'■ ' • 'mn^ ym^r-'-.W^-^f
Ans. — With the difference of the Bills. Payable account.
Rem. — It is very important to compare tht-se duplicate ^
accounts.
(3) What is the avantage of using Auxiliary Books t
An^. — Th«*y diride ihe labor (in larjfe business housei
only) and avoid unnecessary writing.
„
i.
"N
h t-
i
21 What does the Invoice Book contain 9
A«^. — It contains, copies of tbe invoices and tht
:.
i
yf
It
,
i
IMTOICS BOOK.
ai
Bills of Parcels of all goods purchased by
the merchant.* -.-.:..' t. .,^v— '. .n-*..-— <i^
82 What is ihe Sales-Book clcsignerl to show?
Ans,— It IS (]o«ignf>(l to show whatever regards
- goods sold oil our own ao-ouni, or for an-
other person's accoum, or for ourselves anfl
others in Co. . ,» ,. , ., .. , .• ^y ^7^
Rem. --A commission Sales-Book is generallj kept
separate. ■?'»' >-' < '} SijrJ-iyjiui; i-? m an? f^*?-' -a-sg
•I T'AI I '
(1) "When fhoultl entries be made in the Tnroice Book ?
-4w5.-* At die limn the goods are received, the invoice, or
bill of thj'm, should be copied into this book.
(2) When are entries made in the Sales-Book ?
Atis. — At the time the goods are .^elected or ordered hf
the pur< hast'r, they should be described by the quan*
titj, qualify, and price.
(3) How and wh«^n do yon take entries from the Invoice
or Sale^. Books to the Day- Book ]
Ans — Siiiglf purchases anl sales may be carried to the
Day-Book separately if they are of large amounts
or we may, with propriety, convey the punhases of a
mo'iih or a wp»k fiom the Invoice Book to the Day
Book ill only one entry, and from the Sales-Book to
the same manner. ^ i. .wii i.i^»/r'jdi
V t.
23 How are the terms Debit and Credit used?
Ans.--^ They are contradisirnctive, and are used
to (hrnote the relation in which persons,
properly, &c., stand to the business. .
24 What is a sure condition of debits and credits ?
Ans.— In every transaction, the sum of the debits
aud the sum of the credits must be (?quai. •
r
n
lirVOIOlBOOK.
ii
1 1
Rem. — The common definition of the word debtor, ii
the person that owes ; but in Book-Keeping:, the definition
it the person, partjr, object, or cause which owes us. Tbe
common definition o( creditor is the person who is owed ;
but in this science it is the person, party, object or cause
which we owe.
JNbte, — It is rery necessary to understand thoroughly
the eiact use and import of the word^ debtor and creditor ,
because the most important part of this science consists
in being able to find with facility ** who or what owes
U8, '* and ** to what or whom we owe, " in all mercantile
transactions.
25 What is an Account ?
Ans, — Every person, species of property, or cause
producing a debit or credit, is designated by
a name, which appear? upon the Ledger, and
IS known as an account.
26 How many sides has an account ? Name them*^
Ans. — Two : debit and credit.
27 Which is the debit side ?
Ans. — The left hand side.
28 Which is the credit side ?
Ans. — The right hand side.
29 What is an account current ?
Ans. — It is a statement intended to explain to the
person to whom it is rendered, how his ac-
count stands in our books and to show what
balance is due him or us.
80 Into how many classes may accounts be di-
vided?
Ans. — Into two : Real and Representative.
81 What in a Beal Account ? **
^
§■
*
;■«•
i
lit
Id
9
id
I
I
^^'
9MJLL ACCOUNT.
Ans,' — It is one that shows a resource or a liabil-
32 Mention some Real accounts ?
Ans —Cash, Bills' Receivable, Kills Payable.
Personal accounts, &c. . . i
33 What is a Bepresentative Account? j
Ai 3. — Ii is oiie ihal shows a loss or a gain.
34 Name some Representative accounts? ^»
Ana. — Merchandise, Expense, Real Estate, &c.
35 What is m^ant by the term Cash ?
Ans. — Cash h the title to designate money,
36 With what is the Cash account debited ?
Ans. — The Cash account is debited with all re-
ceipts of money.
38 With what is it credited ?
Ans. — It is credited with all disbursements.
39 What is shown by the dillerence between the
i sides? .'•
Ans. — The difference must, at any time,show a
resource of the ^xact amount oJt cash on hand.
Rem. — By an error, it may show otherwise.
.^
i
40 Why cannot the Credit side of cash be the
greater?
Ans, — Because more cash cannot be paid out,
than has been received.
(1) How is this account closed ?
Ans, — By Balance^ and it must not be closed otherwise.
f ^^|i41 What is meant by Bills BebeivaUe?
J"-
BILL8 RXOEITABLl,
4|I9. — They are written obligations in our pos-
''' session, for which a specified amount is to b6
received. —
42 With wliat is Bills Receivable account dth-
ited ?
Ans." It is debited with other persons notes
received. * ,
43 With whf.t is it credited?
Ans. — It is credited with other persons notes dis-
posed q/*, or in any manner cancelled. , ;
44 What does the difTerence show ? .oi.>.*
Ans. — The difference (If any) irm.st be on thf' debit
side, and will show our resources consisling
in notes.
(1) What fthouidwe do when notes becomti due and re-
main unpaiii 1 • '•^-
Ans. — We >houltl charg»» iheir amounts to ih^lr drawers,
or tbosf who ouglit to \y.\y them ; for it is then that
the parti^-s owf u>, ;. .. . ^^. ,,.._.♦;,
Rem. — Before the notes were due, we could demand
nothing of ihe persons; the notes alone were responsible,
but after the parties owe and may be sued. --:..;
(2) How ihis account closed? t. , ••?< ^%
Ans, — By Balance, for the difference. If the notes be
ail itasfced away, it is evident the account will
balance. - / - - . >- ->i.v vi-
45 Whatsis meant by Bills Payable ?
iln«. — They are written obligaiinns by which
we are liable to pay a specified amount.
46 WJiat does the Credit side of Bills Payable
show ?
I
BILLS PATABLfl.
Ann, — It shows all our notes and
issued.
47 What (lops the debti side show?
irf^* ^
Ans. — It >h()\vsj all our nolfs and acceptances
redeemed.
48 VVhai is siliown by the diflerencn ?
Ans. — The dill^rtMxe (if any) mu!:?i exhibit our
*^'* unri'dt'eimd noti's. :. -,»
49 How is this aeconnf closed ? " '
Ans, — It is closed To Balance for the difference.
Keim. — It shonki be borne in mind thai notes, like caffh»
ought always- to bf, d»-bUe(t and credited with the valu«
wriiien upon th* m. (f tli'»y are really worth more or lest
tlian tills expressed value, that difleience mufit be sho^tt
in some other account. \
(1) Willi t is menni by the term Mortgage Payable '/
Ans — It !«» anotln-r namt» for BjMs PiiyHhle : ibt? accounts
(MoftgHiie P;iyabl«' ortd Bills Payable) in;iy be kepi
j| sepaiate or together.
(2) Whit is ilie diflVrrnee in effect between s Mart"
gagp Payable ;u<d i^ BrJl Pnynble'f *^ ,
Arts — Th Bi/I PiyofU i- a |>rwnii*s«>iy note ; whereat
the Mottgap^e Paycd^Jt i> » transter of property to
s»c»Me »ht p.>)jU' III o\ [i debit.
(3) AVhui i< ihe ihul .iitii* utiy in exphuning the debit dindi
credit ol Intel e.>t iu<'-tii:l i
Ans. *^ It i» 'ht wiiit of a tiioroiigh iitid<*rsfonding of tht
term mlerf st.
^4) (rm I hi' prnp»'r rhfmition of the term interest, aS em-
ployed in Ihc lii(eiel ;m rount.
Atis, — Interest is the use of money XdX\i»x i\Mii ikL^pre"
mium paid for the u&e.
Z-
H HBBOHANDIBt.
60 What \9 ii!«nally implipd by the term Mer-
chandise ?
Ans. - It usnully implies all property purchased
crowned by the eoncern, lor the purpose of
traffic, and remaining in store,
61 What exceptions are there to this general
rule ?
Ans. — The merchant to know his gains or losses
on a particular kind Mometirnes opens a se-
parate account under its oivn special title.
53 What does the debit side of Merchandise
show ?
Ans, — It shows what Merchandise has cost the
^— « concern.
64 What does the credit side show ?
Ans, — It sht)Ws what Mt-rchanilise has produced.
55 What does the diffiTencr show ?
Ans, — When inventories have been credited, it
must show Bi loss or a giin,
(1) In bow many ways in M^rchanHisft account closed ? '
Ans.-^ln three Wi>ys, depending upon the following cir-
cum^tancefi : when all the merchandise if!» sold, whea
part i^ sold and part remaining unsold, and \asVj when
none is sold.
(2) How is it closed when all the merchandise it i!>oid ?
Ans, — It is closed To or By Loss and Gain for the
loss or gain, and transftr tlii<i item to the debit or
credit side of the Loss and Gain account. •
(3) How i< it closed when part is sold and part remaining
unsold? > .
Ant, — The account is first credited By Balance for the
amount of goods unsold then debittid or credited. To
■ or By Loss and Gain, ^
r-
>f
I
37
(4) How w it closed when none \% sold ?
Ans. — Th«» aToimt i« credited By Balance for the
nmoiint of the debit «ide.
(5) What is mf'ant by Real Estate ?
Ans. — This relates to {"iioh property as houses, lands, &>c.
(6) How is the ac<onnt kept %
Ans. — It ii* kept similar ta Ihit of VTerrhindise.
(7) wiiprpin arp accounts wiih Bank Stock) Rail-
road StOCki &<^'> siniiljir lo Menhandiset
Ans. — In <-is much ha Stock'* of all kinds are boug;ht and
sold at th»fir market value, rather than the value
written on their face.
(8) What is the distinction between a Bank account and
a B.ink Stock account ?
Ans. — Thn first is treati d as a pprsonal account ; where-
as the other is treated as a Merchandise account.
(9) What is meant by Shipment or AdventUTet
Ans. — It is property sent away to be sold by an agent
for us.
(10) With what is such an account debited t
'Ans. — It is debited with its entire cost.
(11) With what is it credited? -'
Ans. — It is credited with its proceeds. ' ^
(12) What does the difference show 7
Ans. — It »hows a loss or a gain.
(13) Wherein does such an account differ from Mer-
chandise.
Ans. — In as much as it distinguishes between property
in store and out of store — it is another name for
Merchandise.
(14) What is a Consignment account t
ilns.—- It is an account used to show the facta conneeted
with tiie tale of consignor'a property.
88
OONSIGNMBNT AOOOUMT.
(15) What dof»« the debit side of such an account show?
Ans. — Ii >ljowsoiir cliii>j»«'>, &«!., H;»Hinsr tlie consignment.
(16) What does ili*' credit >i<le ?liow ? l
Ans — II sln>w« what the crmsionn»*nf h^iJ* produced.
(.17) Should thi*. ;»<coiiril bn d«biled with ihe value of lh«
piojitriy coi)siy;Ufd w^l
Ans. — It should not (il may be (»ntpr»'d on the Day Book
without ciirryiug out the aiootint in thc'columns.)
(18) How would >uch an entry affVcl \h'\ ' *
Ans. — It would render us liable (on our book^) for the pro-
perty couj»igi«ed us.
(19) Wh»n th** propt^rty represented in the consignment
account is di>j»osed of, why do you cancel the account 1
Ans. — Wf do >o, in order to fojward iht* proceeds, which
must b*^ the difference b« fw<eii the two sides of the
account, thereby caneelliug it.
Rem — From \\\m abo\e we niity conclude that a con-
•ign^)^^t account should always be closed by an entry
on the D»y*Buuk referring Xo the account in the Ledger
for pHcticuidrs. : .
(20) \vh:«t is meant by Merchandise Co. Ac-
counts \
Ans. — They are temporary copartnerships between the
consigners sn)i\ the con>ignees, fur the suie of paiticular
consignments. *?
(21) In what particulars does this species of copartnership
differ from general copa^tll^ i^hip ?
Ans — It t'jfft'is oii'y ill xh*' duration of eopaitnership, and
in \\w. manner of conducliiii' its sales.
(22; Show ihJH mort* explicitly ? «
Ans, — In Men h<indi>e couipmiies, one of liie prrtuers
(the consignee) is Ihe coiumii^ion mi chant, and,
ID that capacity, receives and disposes of the proper-
ty IS be would of ^ simple consigQmeDt ; the only
•I
Jk,
X
jJUpmi
i]
1
1:
I : 1 : r-
KKROHANDISfi 00. AOCOUNTB.
t tiCi
difference being that he is interested in the gains and
losses. .... •,.-,. -r,
(23) Is ihe rPi»nn^r of conducting these Merchandise com-
pMnif-s Uiiifuriii ? ,
Ans.—^o : ihere J«re two methods. c
(24) What principle is recognized in the ^/s/ wzc^/ioc??
Ans. — Thn holder of the properly is res-pousiblc for lh«
Men hamiis*'.
(25) What in ihe second? ' '
-4^75. — The owner of the property is responsible. ^'\
(26) Give an illustration of < lie y?/-s^ we^/ia'/? - '
Ans. — When we receive from N— — , an invoice to be sold
on joint account, wh debit •* Mdse. Co. A. " wiih ihe
- ' invoice and expense},, and credit the coa«iignors with
the cost of the invoice, ihtis nicikmg ourselves res-
pon-ih'n for the pioj»erty, as though it were ull our
V own. fa"! ., ^
Rem. — Th«' property shipped is supposed to come frdin
,,j, the consigner's own resources,
(27) IHustrato the second method ?
Ans. — When we rective from N , Merchandise to
. , be sold on joint account, we debit " Mdse. Co. B. "
^.,,^ wilh our own share only, and credit the consignor. [h'\
(28) By iiit^ Jifst m.fthod when n»ore than two parties are
interested, what entry should the coj^Mgnee niuke oa
(rt) What woultl be the consignor's entry, if recognizing
the same printiple ?
To ^f6z7 us wilh lh»' entire cost of the Merchandise.
(h) Whil would be the con«>ignor's entry in this case ?
Ans, — If made lo correspond with ours, it would be to debit
us with our share, and Shipment in Co. to , [|plac«
'Of our business J for bii share.
40
HiaOHANDIBl 00. AOOOUMTS.
the receipt of the property to be sold OD joint tc-
count ?
Ans. — The consignee should, as before, debit Mdse. Co*
account with its entire co.st — iuvnice and (•xpeiiHes
— and credit the consignor with their [^ihe con-
signee's and consignorV] joint i-hiire and any other
party or parties with his or iheir share, [c', «?].
(29) By the second mefJwd when three or more parties
are inteffsteil, wliit ^ntry will the consignee make on
receiving properly to be sold on joint account ?
Ans. — The consignee .should dt-bit '* Mtlse. Co." account
for his own share an«l ail the charges, and credit the
consignor for his [the consignee's share.] fe, /"].
(30) When is the consignee considered responsible by
tht; first method ?
Ant, — He becomes responsibU for the property when he
receives the consignment.
J
(c) What would be the consignor's entry upon shipping
the properly ?
Ans. — The consignor would, in such a case, debit the con-
signee with their joint share, and each of the other
parties with bis or their share*
(rf; What the other parties ?
Ans, — The other parties would, if making an entry to cor-
respond, debit the consignee and credit the consignor
each for his own share.
(e) What the consignor ?
Ans, — He should debit each of the parties for their res-
pective shaies, and *< Shi|)ment in Co" for bis owa
share.
(/) What the other parties ?
Ans. — Each of the other parties shoiild debit " Shipment
in Co. " and credit the consignor each for bis owd
sbtre.
s ■
;-4
1
'Mk
■
^m
MBBOHANDISB 00. AOOOUMTS.
41
ji
•:f t
(31) When bj the second ?
Ans, — As soon as he has disposed of the consignment.
Rem, The final result is the same in either case. (
(32) Which method is absolutely correct ?
Ans. — So far as absolute right and responsibility are con-
cerned, the second method is the correct and philoso-
phical one — the principle recogrnised, being that the
ot^/z^ of the property is responsible. , , ,;
(33) What advantage has the first method 7 ^
Ans. — The only advantage possessed by the first method
is, that the ** Mdse. Co. " account shows its entire
. ' cost at the commencement.
(34) Arc *< Mdse. Co. ^' accounts to be classified as Real
or as Representative? i . , ;
Ans. — In their current condition they aire neither Real nor
Representative. * i • .. ♦. ■ '
(35) How may they be made Real ?
Ans. — Thus, by debiting them with all the cost, and our
share of ih** gain — [or, crediting them with our ^hare
of the loss] the dift^renre will represent what we owe
to the parlies interested — the account thus Jiecomes
Real. T ,,,.. r ,
(36) How may they be made Representative ?
Ans. — By debiting them with all the cost and the gains of
the other parties [or crediting with the loss of the
other parties], the difterence will represent our gain
or loss, and the account thus becomes Rt'pre^^ntative.
(37) What <lo you understand by the Storage and
Advertising account ?
Ans. — I understand an account kept of our charges
against con>ignors, &c., for the sate-keeping of their
property, and advertising the Public of the sales of
the same.
* For this reason, it is better to close them by a Journid
entryi when the property they represent it ditpoied of.
41
COHMISSION AOOOUIVT.
(38) What by Commission account ?
Ans. — An arconni kfpt of ih« allow«»ncp« madft us by con-
signors &c., in rompen^ation for our Ironble in selU
ing lh»;ir properly, usually at so ujutli per cent. ^^
(39) In whit pailicMilar does a merchant'* " Private ac-
«onnt " diflVr from his *' Siock aeconnt ? "
Ans. — Tn this, that ihe " Private account " shows him,
' in one amount, what he has dr^iWii from the business
for liJH own private ur<% which amount cannot be read-
ily had from " Stock.
5>
56 VVhai are Personal Accounts ?
yins. — V\o.c(»unis rcpro^entlnty personal inflrblcd-
nesVs, and (JoignaioH by iht* proper name's of
s»j(^h per-ons as snstain relation of debtor
and creditor to the concorn. »* • < '- "• *
67 VVliat fjoes ihe debit side of such an account
8how? '
Ans. — It {shows our account against him or them.
58 What, the credit side I :• ; ,
Ans. — It shows therr account against us.
59 VVhai is ^hown by the difference?
Ans. — It shows a resource or a liability, "v
60 Do(»s the term Stock as a Ledger account
relate lo a special kind of properly ?
Ans. — It does not relate to any properly.
61 To what then ? ' ■ -vri*' • • '^ < ■ ^' i^^ Q
Ans. — It represents simply the proprietor of the
busmess, or the stock-holder. '""" ."^ ^''^ '^" #*>
T {
"-.i^r^t..
I*
^0
\ K.' '
"""i~, '
(1) Would there be any valid objection to using the pro-
prietors name instead ?
i<ifM.—Tbert would b« nont. k ''■ . • ^
1
0TOCK.
48
■*'"
(2) Why 18 tWs not done ?
^ns.-— Because no pood would result from the change,
and practical accounlants have been content to ac-
cept the term which custom has suggested.
62 What does the debtor side of Stock show ^
Ans - li shovv--^ iht^ liabjlilies whicth the concern
assrunes to pay for the proprunor.
63 What doe?* iht? criMJitor side show ? "
An.s. — Ii shows ih*' whole arnoimi invested.
6i What is sliowii by the difference '^
Ans,~-l\ ^hows ilie Jiot iuvestnicni.
•n
(1) Is it customaiy to uso tbi;> account during the bu?i-
ness 'f ' - ^ » • ,.
Ans.- It '*< not, exct'jit for the juirpose of recording sub-
SpqiK ni i«)»t'slin<'nfs. ■ ' . . - / •
(2) Woui'l it bf^ philosophically correct to credit this
account wiih the gams as r)ften as ih^j occur, and
convnst ly ] '
Ans. — l* would be correct ; but is attended with many
difiicultieh which are overcome by the Ubual method.
' ff. "-
nr'^'
•JV.
.«*.
^ * * ' -. ^ ; . '. ,
> , I'- i t i
-000
'vj
^|{?
#'^>.
ii,-
■; .f > -
.'/ i.
; < j^;,i'.-'.
r/
mw
Principles.
K^'^Olv
^,^
66 With what phoiild the Proprietor of the
business be crediied ? -^ -■ .
An8» — Th(» person or persons investing in busi-
ness should be crediied. under some title, for
such invesitne>i)is, and also for his or their
share of the gains.
66 With what debited ? " *^
Ans. — He or they should be debited for all liabi-
lities assumed by the concern for him or
them, for all sum-^ withdrawn from the busi-
ness by him or them, and tor such losses as
be or they are entitled to share.
67 With what should the Cash Account be
debited 9
Ans, — It should be debited for all cash receipts.
68 For what credited ?
Ans, — It should be credited for all disbursements.
Ill
69 With what should the Merchandise Ac«
count he debited 9
Ans. — The Merchandise Account (and all ac-
counts similar to Mdse.) shoaid be debited
for the cost of the property.
Hr^
Hiiii
m^^f^mm
rRt^dt^Lttl
46
r.
70 With what credited ?
Am.—li should be credited with its proceeds.
IV
71 When should Bills Eeccivable Account be
debited ?
^u,.— It should be debited with other people*8
notes, acceptances, and other written obliga-
tions when they become ours, v
72 When credited?
jIjis, — Tbey should be credited when they are
paid, or otherwise disposed of.
^>s
<?fe"
^^
73 With what should Bills Payable Account
be credited ?
Ans — It should be credited with our notes, ac-
ceptances, or written promises to pay, when
they are issued.
74 With what debited ?
Ans.-'h should be debited with these notes
when they are paid or redeemed.
VI ' -:'::.
75 When should Personal AccoimtB be debit-
ed?
Ans, — Personal accounts, such as names of per-
sons, banks or oiher institutions, competent
1o sue or to be sued, siiould be debited under
their proper titles when they become indebt-
ed to us, or we get oat of their debt.
IM
^rv
■^--
M
BXP£If«B AOCOVIfT.
76 When credited ? '
Ans. — Thoy should be credited when we become
indebted lo iheiri, or lliey gel out of. our debt.
VII
"k
77 With what should Expense Account be
dcbil«'«| *? i v^;- -j-i'%
Ans — All expenses of whatever name, should
be debit* d for the outlay. ; .^'>' ..'
78 How should causes producing us valuC)
be treated? -''' "^^
^nff. - All causes, of whatever kind, producing us
valup, should b«* credited uiuler some name,
f(»r the amouiii th<.s produced.
Rem. — The fougoinor principles are ai! embraced in
tbe loiinwiiifi^ simple foniiula.
79 Repeal the General rormula for debits and
crf(iiis ? ,,, . ..T . . . , ;^
Ans. — Debit what costs the concern value, aud
Credit what produces the concern value.
Rem. 1 — Ner^T permit th*» mere rircnmstance of rtf-
.ceiviTtg or delivering fo ilivert the attention from the
true and only pi Helical rule — the General Formula for
debits and credits. ' ' ^'^ - ;. vi.> jjuv
2. — There are various trnnsaftion«s in which the object
tb:^! is received is not our debLor^ aud ihal which is deliV'
ered is not our creditor, ^ ^ , , ,
3. — Tbe old rule can nerer be applied to iaterest|
without making a wrong entry.
r- -
. - rr.
' t-^ \J . A .a
'000'
♦ .
\
^l
.^r:v,4-rp*t
'ih:>V-'- ^^:
:HMn
If'
. Goasral Instructions
'/S.I <:;
i-.i.*.;..;;, 'i I,
^m^*'
80 ^^ ^ly i^bnnlfl the pinffont keep the Ledger «n
vJHw, wh^n journaHzinsi;^ n .» 'i; I
jlrw. ■ Be(!H(ise the process of jojirnalizing ii^ sirpp-
, ioJy <l*'<*'<'ing how the accounts shall stand on
the Ledjijrr. W •. .. ; f
81 When should the Clieck-Mark {^) be made
in ihe I)av Bnok, and wlicn^ ?
Ans. — Xx }<h()uld be m-ide opposiie the Day-Book
eniry, imnudiotely upon its being journul-
iz^'d— never before,
,S2 What is transf. rring to the Ledger called ?
Ans. — 1 1 iis eailed Posting— ihe process is me-
j ,ju ^.chaiiFcal. ■ .. „, , ,
(t) Wh .t is Ihp object of PoMin^. ? ' -. .
Ans —The object of po.-lin^ is to ensihle us to fin<i all con-
cerning one person or ihing from I he begjuniiig of the
bn*«iness to the piesent> at one place and in one
book — J he LeHgtT. •
(2) How often should books be posted ?
-4/15— 'D<«i'j. w+'fk^7, or monthly, according to thie nature
of the bubiness.
Why is it nepffssary, to observe cafe , in .p(>|9t-
mg
;i«*.v»
iUI
,^|j«.----Becaiise err6i:s must all be found and,cor^
rected before we can proceed — ejrc(^jf«^fijje
48
OlNlftAL XNBTBUOTlOlfl.
more easily avoided than detected*
84 What is the first account opened in the
Ledger? ,
Ans. — It is customary and proper always to open
Stock or Partners as the first account. *
85 When an account is posted to the Ledger
what expression should be made? ^ r "^
J^ns. — The oppi)site Journal entry expression.
86 la it necessary that an^/ expression be made ?
Ans. — It is not really necessary, as the fact is
expressed by \he figures.
Rem.— The expreppion, vrhen properly made, is suggei-
tive of the transaction^ and hence is seldom if ever omiUed
by accountants.
(1) Illustrate the process of Posting ?
Ans. — Suppose the Journal entry be Ca*h Dr. to Mer-
chandise, $1000. Turn tu the debtor side of the
Ca^h Arrount in the Ledger, enter in ihe column!» for
thai purpose the date, Journal page and sum, and
write, ** To Menhandise ; " then turn to the creditor
side of Merrhindise, where you enter the same par-
ticulars as before, and wiit«», '' By Cafh " thrn en-
ter the ledger pages of Cabh and Merchandise oppo-
site these respective titles in the Journal, whicb will
serve as post marks.
78 Where should the Page of the Ledger to
* Some houses, desiring to keep the particular interests
of the partners, or the conditions of the copartnership from
the public, or from the knowledge of any parties exttej^
themselves, keep a private Stock Ledger, to which even
the book-keeper has no access. In such cases tiie books
«re kept as Stock-books, with but one account tQ reprdlent
tiki oaj^itat.
THE PAQS OF THE LEDGER.
49
'I'v.,
whioh an amount is posted be entered in the
Journal ?
Ans. — Ft should be placod in the column at the
left of the account and directly opposite its
entry. '1 - ,
79 When? . -^ .^^ v.i%:^/'^ • - . i
Ans. — Immediately after the amount is entered in
the LeJge^ but never before. *
80 Why is the Trial Balance so called ? *'
Ans. — Because it is a trial to ascertain if the
debits and credits are equal or balance.
(I) How often is necessary to ninke a Trial Eatanc^?
Ans, — MofHhIy or quarterly, sometimes it is left until tli^
end of the year when it rarely balances.
r
81 Does the " Trial Balance " prove the Ledger
to be absolutely correct?
Ans. — It does nut prove the Ledger to be ab-
>» solutely correct.
82 Why? . - » *^^\ !
Ans. — For the reason that there are many cir-
cumstances under which the Ledger may
balance, and yet be wrong. ^,,_^-
83 Is the /fcs^ afforded by the Trial Balance
77 usually satisfactory? •«..'.
* This instniciii)ti will, of course, apply only to cases /
where the post-mark is used also as a checkmark. It is cus- />4>
tomary with gome accourilaiits, in ord^r lo facilitate the
latior of posliria:, to enter opposite the Journal entries, be-
fore postingn ihe page of the Ledger to which each entry
is to be posted ; and lo indicate ihe ^ac^ of posting by an
additional post-mark. In this case, of course, the check'
mark and not the Ledger page, is subject the above res*
triction.
&0
TRIAL BALANOI.
>'.
Ana. — Under ordinary circumstances, it may be
considered satisfactory.
84 How do you prove that all the Journal en-
tries have been polled ?
Ans. — By observing if the total footings of the
Ledger exactly agree with those of the Journ-
al, which could rarely be the case if any of
the Journal entries were omitted to be posted.
y
85 How do you prove that all the origina' "entries
have been journalized ?
Ans. — By having the total footings of the Day-
Book to agree exactly with that of the
- Journal.
86 When these precautions are taken, how many
chances are there for errors which may es-
cape the Trial Balance test ? ,
Ans. — There are two chances for errors in the ac-
counts, viz : from improper Journal entries,
and from posting to the wrong accAints in the
Ledger.
87 Can a correct Trial Balance be had which
will contain simply the difTerences of the
Ledger accounts ?
Ans, — It can, and quite as satisfactory as the
other.
88 Upon what principle is this affected?
ns. — On the principle of cancellation.
9 Are these two forms of the Trial Balance
ever combined in one?
Ans. — They are, and accountants have found it
very convenient to combine them.
Rem, — It is never proper to leave the Trial Balance
^
be
TBIAL BALANOI.
51
io th<! counting-room with the Books ; as in ease of fire,
and the destruction of the Books, it would be almost as
Taluable to us as the Books themselves.
•aoo-
Ledger
90 What is the important consideration with
the business man in reference to his accounts ?
Avis. — It is to keep his resources and liabilities
constantly in view.
91 What does this enable him to do?
Ans. — He is thus enabled to estimate practic-
ally the degree of his prosperity.
92 What will a Ledger properly kepi show
at any time ?
An^, — It will show all resources, having a real or
*y^/ fixed value, and liabilities of whatever kind.
96 What kind of BesoUTCes cannot be shown
by the Ledger ?
Aim* — Property purchased on speculation or sub*
ject to fluctuation in price.
tin
6>
RESOURCES.
94 How is ihe real value of such property as-
certained ?
Ans.— \{ can be kncfwn only by actual appraisal.
95 What will the difl'erence in the sides of the
Merchandise account show, if debited and
credited wilh the same value ? -^
Ans. — It Viill show the value of that remaining
unsold, reckoning it at cost price. -
96 When ihe Merchandise account is debited
■with ihc cost of merchandise, and credited
with tho proceeds, how much will the dif-
ference between ihe two sides fail of showing
the value of ihe merchandise unsold?
^n^.— The difference will fail to represent the
amount on band in the exact amounrt of
ihe discrepancy between the cost and the pro-
ceeds from sales.
7 When, the account is so kept, what is our
only method of ascertaining the value of the
merchandise unsold r
Ans, — It is to go up to the shelves and estimate
it by actual inspection.
98 What is the process called ?
Ana. — *' Taking an Inventory" or "taking an
account of stock. "
99 If ihe net cost * of merchandise exceed the
■^
• This phrase may not seem, at first view, properly sig-
nificant ; but we apprehend that it is truthful neverthe-
less. For, although it may not be true that the tiifference
between the cost of rnercliandise and proceeds of a certain
portion sold exhibits the net-cost of that with remains un-
sold, yet that difference does express what we lack, so far,
in receiving as much as we have paid for merchandise;
BESOURCEt^.
53
value of ihe merchandise unsold, will the
account show a gain or a loss ?
Ana. — It will show a loss.
100 When the real condition of a concern is
stated, what must ii exhibit ?
Ans, — It must exhibit equal resources and liabit-
ities.
101 For what purpose is the " Stock account ^^
opened ?
Ans. — For the purpose of showing the net cap-
ital or investment.
102 Why does not the " Stock account ** per-
g^ pelually represent the net investment ?
Ans. — Because the capital or investment fluctu*
ates in value during the busine:«s. v^
103 Why is it necessary to '' close up ** the
Ledger accounts.
Ans.— In oT'ler to restore the " Stock account**
to its normal condition by the balanqeis of
resources and liabilities.
;:Gv-;
-* f> /♦ * /
^
therefore, Ve sny it has really cost us the difference. If
this amount ^iioiild expresH the cost over proceeds, tuiih the
property nil ru^«e^ of, it would represent a loss; but as
there is yel actuHr '^tokie in that which remains unsold, we
dan safely anticipate further proceeds equal to that value.
When this is shown, the difference between tvie cost and
returns will be the gain or los$.
mm
I
Closing the Ledger
I >■'
104 What is the chief difficulty with learners in
closing the Ledger ?
Ans. — It is to understand clearly the object to h^
attained by " closing the Ledger."
105 What is the effect of " closing up " an ac-
count ? X
Ans, — It is to put an end to its current condi-
tion. ; . , ./i
106 How is a Reed account closed when ths
sides are equal ? v
Ana. — It is necessary only to add up the two sidesi
and draw red lines underneath the amounts
of each — it is then as though it never existed.
107 How, when unequal ?
Ana* — We enter upon the sniaUer side, in red ink,
an amount which makes it equal to the larger
side — the exrf^ss will be either a resource or
a liability.
108 How is a Representative account closed
when the sides are equal ?
Ana, — When the proceeds are shown, ii is also
closed by adding up the crtulit and debit
columns and drawing red lines underneath.
109 How is a Represenlive account closed when
the sides are unequal ?
ylfw.— If unequal the excess will be entered on
the smaller side in red ink, and will repre*
sent a gain or a loaa.
r&opftiBTOKs iN^mtsftrt
dft
HO At what stage of the business does " Stock "
account ceased to represent the Proprietor's
Interest ?
Jins» — Just as soon as the invested capital begins
to fluctuate or change in value.
111 Why is this? ,.,1. - .
Ans, — This is simply because the gains and loss-
es are not carried to the. ** Stock" account
- when they occur^ but are allowed to remain
in the Representative accounts.
112 How can we, at any time, ascertain the pro-
prietor's interest or what the concern is ow»
ing him?
^ns. — 6y taking the gains and losses from hi?
Representative accounts, and carrying thein
to the '* Stock account. '*
113 How is this done ?
Ans. — By " closing up " the accounts and trans'^
ferring their balances. ,...,.
• 114 What is the usual method of carrying gains
and losses to the " Stock " account ?
Aji8, — The usual method is to open a general
account called *'• Loss and Gain " and trans-
fer to it all gains and losses.
115 What is the advantage of opening a LOM
and Gain Aceonnt ?
An«.— It is that we are thus enabled, the more
easily, to get the net gain or net iossjin one
amount, which we carry to Stock.
J16 To \vhich side of " Slock " account are gains
carried, and how do they affect that ac-
rpunt?
^
LOSS AND GAIN AOGOUNT.
'Aris, — ^If it be a net gain, it will go to the credit
:. side of the account, thereby increasing the
investment. - - ., . .
H7 To which side are losses carried, and how
do they affect the account ? '
Ans. — If a loss, to the debit side, decreasing the
investment. ' •-^ .
US Can the gains and losses be thus disposed
of, without disturbing the Real accounts ?
Ans, — Yes, they can be disposed of without dis-
turbing the others. , - .-.-»•
119 What is the object of opening a Balance
Account? '
Ans. — To show, in a tabular fornn, the resources
and liabilities of the concern — this is done*
by closing the Real accounts into it.
120 How can we dispose of the amounts prop-
erly carried to the " Balance " account, if
we wish merely to shov; an era in our
business ?
Ans. — By closing up the Real accounts and bring
down the balances. .,..,.
1^ What is the main object in closing the Ledger
accounts ?
>liw»— It is to restore the proprietor's account to
the same relative position towards the busi-
, . ness, which it occupied at the commencement
showing the net investment.
122 What does an Entry in Red Ink on the
Ledger denote ?
Ans.p^\i denotes that the amount thus written
is to be transferred^ either to some other ac-
RED INK ENTRIES.
57
count, or to another position under the same
account. • .» . n > v •
123 What else does an entity in red ink denote ?
Ans. — It also shows that the entry is first made
in the Ledger, nor having passed through the
usual preliminary books ot entry. "
124 How are red ink entries always transferred ?
Ans» — They are always transferred to the opposite
side from wiiere they fir>3t appear.
125 Why, trau. Tjrred \o \he opposite side}
Ans, — For the reason that they indicate an excess
on that side. - . , .. ,
{ .
-000"
• » : r
* -r*
Order of closing
126 What is the jirst Step in closing the
Ledger? ,
Ans. — To open an account with " Loss and
Gain " (if not already opened), and another
. - with *' Balance. "
127 What results are shown by the '*Loss and
Gain " account ? '
Ans.--rThe losses and gains are shown.
12$ VVhat, by the '/Balance " account?
A»8. — The resources and liabilities,
ial What is the Second Step ?
OBDXR OF CLOSING.
Ana, — It is to ascertain from the inventory if any
property remains unsold; and, if so, credit
each account for which such property was
originally debited with the value of that
unsold.
180 How is this entry made ?
An8» — It is made in red ink, " By Balance, '*
and the amount transferred directly to the
debit side of the " Balance " account, making
the entry in black ink^ *' To Merchandise, '
or ** To Real Estate, " or any other account
from which the amount is translerred.
131 When the inventories are placed to their
proper accounts, what will be shown by
the Ledger ^
An$. — The Ledger accounts will each show,
now, one of the four following results, viz :
a Resource, a Liability, a Gain or a Loss.
132 What is the Third Step ?
Ana, — Omitting Stock account (or Partners' ac-
counts) commence with the first account in
the Ledger. First ascertain wliich of the above
results it shows, making the closing entry ac-
cordingly. If the difference represent a re-
source, or a liability, enter upon the smaller
side, in red ink^ *' To, " or '' By Balance, ^
as the case may be, and transfer the amount
in black ink to the opposite side of the Bal-
ance account.
133 What, if the difference represent a gain or a
loss.?
Ana, — If so, enter on the smaller side,|in rod ink,
" To, " or " By Loss and Gain, " and transfer
y
HHUMlMi
MMBi
iMiiiHiMiiiiMi
M
ORDER OF OLOBINQ.
59
it
is
It
y
'^^
the amount, in the same manner to the ^' Loss
and Gain" account/
134 What else is to be done to complete this step ?
Ans, — Close all the accounts (except Slock or
Partners') and transferred the balances as be-
fore directed.
135 When the balances have been properly trans-
ferred, what will the " Lo^ss and Gam'* ac-
count show?
Ans, — It will now show, on the debit tde, all
the losses, and on the credit side, all the
, gains, — the difference shall be the net gain
or net loss.
138 What will the " Balance " account show ?
Ans. — The Balance account will show on the
debit side all resources, and on the credit
side ail liabilities (except the result of Stock
or Partners' accounts).
137 What will the difference be ?
Ans. — The difference will be the real interest or
present investment of the proprietor.
138 What is the Fourth Step ?
Ans, — It is to take a " Second Trial Balance, *'
or a Trial Balance of the Remaining open
accounts : Stock or Partners', Loss and
Gain, and Balance. •
139 Of what use is the " Second Trial Balance " ?
Ans. — To show (the balances having been pro-
perly transferred) that the debits and credits
of tliese accounts, taken together, must be
equal.
140 What is the Fifth Step ?
/A
mMUm
m
OHDER OF CLOSING.
vliM. — It is to close " Loss and Gain " account into
*• Slock, " or, if it be a parinorship business,
into the pariner^' accounts, dividing the g;^in
or loss acuordini' to aqiceiiient.
141 When the net gain or loss has been trans-
ff'rrcd to the "■ Siock or Partners' accounts,'*
what will these accounts show ?
AnSp — Slock or Partners' accounts will nov/ show
the original investment, increased by the
gain, or decreased by the loss ; the difference
being the present net investment.
142 Why must the difference oi these accounts
(or Stock) agree with the difference of the
Balance account ? i^,
Ans. — Since the Balance accounts shows the same
thing, they must, of course, agree.
143 What is the Sixth or last Step ?
Ans, — Close Stock account (or Partners' accounts)
into Balance account, which must equalize
that account.
144 What must the Balance account show when
complete ?
Ans. — It must show on one side the total re-
sources, and on the other the total liabililies-
It presents, in the most condensed form, the
exact present condition of the business.
000*
mmtk
.r a.
o
1
IQ
» I
. ♦ « ■* r •
>
-n
\
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l
General Remarks. .;
145 Have we sufficient data in the Balance Ac-
count to enable u« to open a new set of
books ?
Ans, — Yes, we have all the necessary information
for that purpose,
146 Is there really any necessity for opening a
Balance account ?
Ans. — There is usually no actual necessity for
opening a Balance account.
147 Why is it sometimes opened ?
Ans, — To exhibit, undei one title^ the resources
* ■' and liabilities. • "
148 In actual business is this account often ex-
hibited on the Ledger?
Arts.' — This account is seldom exhibited on the
Ledger in actual business.
149 How are its contents otherwise shown ?
Ans» — They are otherwise shown on a separate
Balance Sheet. , ,
150 Why does not the transferring of balances
from one account to another destroy the
Equilibrium of the Ledger ?
Ans. — For the reason that, before closing any of
the accounts in the Ledger, we ascertain by
the Trial Balance that our debits and credits
are f*qual, and we take care, in every step,
lo keep them so, by debiting one account
and crediting some other account with the
same amount, and vice versa.
EQUILIBRIUM OF THE LEDGER.
151 What is the transferring of balances equal to ?
Ans. — In " closing up*' the Ledger, we call ihis
process " transferring ; " but it is exactly
equivalent to posting.
152 What is usually the first entry of this kind?
Ans. — The first entry is to credit Merchandise and
debit Balance with the properly unsold.
153 How does the above transferring affect the
account on which it is made ?
Ans, — So far as this affects our Merchandise ac-
count, it is equivalent to selling ihe mer-
chandise, and receiving therefore an absolute
resource, which we call " Balance, " but
which is Merchandise, reckoned at its true
value.
154 How can we now treat our Merchandise ac-
count ? i » .
Ans.^We can treat it as if the property were all
disposed of; this we do, in fact, by repre-
senting the difference between the sides as a
gain,
155 What is done wilh this gain ?
Ans, — We now debit Merchandise account wilh
this gain, and credit Loss and Gain, preserv-
ing as before, our fundamental rule of
" equal debits and credits. "
Rem. — We persue this policy with all the accounts, trans-
ferring always to the opposite side from that on which the
closing entry is made and thus mentain a perpetual equi-
librium.
166 Where might the Balances carried to the
Loss and Gain account properly be transfer-
red ?
i
[
■MHiiiMiiiflMiiMik
mmmm
■■
fiALANCES.
63
Ans. — They might wiih equal propriety be trans-
ferred direcily to the Stock account. •
157 Why is it not done ?
Ans, — B<*cau8(' we wish to exhibit, in one amount
the net gain ot loss during the business.
158 Upon what principle are accounts balanced?
An8,-'li should be remembered, that the balancing
or closing of an account is simply upon tLc^
principle of cancellation.
159 How is an account made to " balance ? ''
Ans, — An account is made to " balance '' by tak-
ing away the excess.
160 Upon which side does this excess afterwards
appear?
Ans. — It appears elsewhere, and on the same side
of the Ledger. . , ,
Rem. — These balances of gains, losses, resources and
liabilities, are thu.s transferred to two accounts, '* Loss and
Gain " and ♦* Balance " tkus exhibiting in the former, all
the gains and losses, and, in the latter, all resources and lia-
bilities. : , ' .
191 When all the balances except Stock are
transferred to *' Loss and Gain " and •* Bal
ance accounts, why must these with Stock
Account, contain equal debiis and credits.^
Ans. — Since in the Trial Balance an equilibrium
is shown, and in every subsequent entry the
same is preserved, it naturally follows that
these two accounts must be equal.
162 What is shown by the Stock account before
the Loss and Gain account is closed into it 7
Ans. — It shows the capital at commencing.
64
BALANCES.
163 What is shown by ihe Balance account ?
Ans.—li shows the capital at closing,
164 Willi what should ihe discrepancy in these
two accounts agree?
Ans. — The discrepancy between the two accounts,
must exactly agree with the gain or loss in
business.
165 Why must this discrepancy tally exactly
with ihe diflerenee bt^tween the sides of the
Loss and Gain account ?
Ans, — Since the difference between the Loss and
Gain account shows the ne* gain or tiie net
]os5! end the (ii^J'Trnce between the capital
at commencing and the capital at closing
shows the same, iiierefore the difference be-
tween the sides of Loss and Gain account is
equal to the difference between Stock and
Balance account.
166 What will the Stock account show when this
discrepancy is transferred from the Loss and
Gain account?
Afis. — The Stock account will show fir^i the. cap-
ital at commencing, ami next the gain or
loss during Kusiiiess, which together mu4t
equal tlie capital at closing. . ^ ^
iC7 Why will the Stock account now agree with
the Balance account?
Ans. — For the reason that the Balance r^ccountj
showing all the resources fiiui all the liabili-
ties at closing, must represent the same differ-
ence as Stock, and either being transferred
lo the other account, must equalize the sides.
Rem, — It will be apparent that throughout the discussion
HilMyiiMiMa
SSB
GENERAL REMARKS.
C5
this far, a marked distlction has been drawn between the
proprietor and the business. It is necessary that this dis-
tinction be clearly apprehended before proceeding farther.
The f-^ct is strikin^^ly apparent in the first entiy on the
books, which is to credit Sioek with the investment. Now
if we inquire t^'Ao credits Stock, we shall be forced to the
conclusion that there is a party represented here entirely
distinct from Slock, or the pruprietoi ; as it would be non-
sense to express the fact that a man owes himself,
168 What Particular Interest is always repre-
sented by a set of bocks .?
-4n«.— The books represent the concern and not
the proprietor.
179 What relation does " Stock " account bear
to the business?
Ans. — The account opened with Stock is precise-
ly the same as that opened with any other
person, excepi that the final settlement with
slock will not take place un^ill the business
ceases, or he withdraws from it.
170 If the credit side of Stock account exceeds
the debit, how does it affect the business !
Ans. — In as much as this difference, being a lia-
bilily to the concern, must be paid over to
the proprietor; hence the business is closed.
■000
>*»:■
1 . . - »
■Mil
4, . ;
ECONOMICAL METHOD
J f'
OF
BOOK " KEEPINa*
1 What is the peculiar Feature of this method ?
Ans, — It consists in the manner and form of
original entries, which are made in separate
books — elsewhere used as auxiliaries, — from
which I hey are either journalized, or posted
directly to the Ledger at stated periods.
2 Has this method any Advantages over that of
consecutive entries in the Day-Book ?
Ans, — Yes, it has many advantages over consec-
utive entries in the Day-Book, and, in one
form or other, is adopted generally in all large
establishments.
3 In what do such advantage consist ?
Ans, — In as much as the labors of the Book-
keeper are thus divided up, and the separate
departments of the business receive such
special record as to present all the facts ia
their clearest light.
4 Illustrate the above ?
* The student should not undertake the study of this me«
thod until he thoroughly possesses the usual method of
Double entry ; otherwise he shall be much baffled in th9
nndeurstand of thisi
■ .'i/HlP.vn^qBP^WiW^
68
ADVANTAOES.
Ans. — Thus, if any particular information is de-
sired respecting purchase?, all the facts can
be shown at once from the Invoice-Book ;
and, in the same manner the fact and condi-
tion ol the sales can be shown from the
Sales-Book, the receipts acd disbursements
of tJash from the Cash-Book, &c. .
5 What Difficulty lies in the way of using the
various books of original entries as principal
books from which to post or journalize ?
Ans.^The onlv difficultv is in the danger of
making the entries in the different books
conflict with each other upon the Ledger.
6 What should the Cash-Book show ?
Ans. — The Cash-Book (if used) should be com-
petent to show all receipts and disbursements
of cash.
7 How is it made to show all receipts and dis-
bursements of the cash ?
Ans.^ By placing the receipts on one side, and
disbursements on the other — the di'fference
being, at any time, the amount on hand.
8 When cash is debited on the Cash- Book, what
is credited ?
Ans. —The object or cause for which it is receiv*
ed may also be stated.
9 Is every entry, made on either side of the Cash-
Book, really a double entiy ?
Ans." Yes, a double entry i? effected, although
but ofie amount is shown. ^^
Rem.-— The same principle will hold in entering the
disbursements of cash ; as, when cas^h is paiii, (he object or
cause for which it is paid is properly expressed.
10
CASH-BOOK.
69
10 What would be a proper caption for the debit
side of Cash-Book ?
Ans. — The appropriate caption would be " Cash
Dr. To Sundries. "
Rem.-^The debit of cash being the total amount re-
ceived at any specified time, and tlie credit of sundries
being the separate amounts produced by the difTerent
causes represented. • ■ ; I
11 What, lor the credit side of the Cash-Book.^
Afis,—'' Sundries Dr. Tcr Cash. " .
Rem. — Cash being credited for the total disbursements,
and the sundry 'causes for which cash was paid debited for
their separate amounts.
12 What credits are shown on the debit side of
the C ash-Book ?
Ans. — The debit Ade contains the credits o( all
accounts producing cash
13 What debits are shown on the credit side ?
Ans. — The credit side show the debits of all ac-
counts costing cash.
14 Does the sam(^ principle hold with reference
to the Sales-Book and Invoice-Book ?
Ans. — It does, the Jnvoice-Book, will exhibit the
separate credits producing merchandise ; and
the Sales-Books exhibits also the separate
debits produced by the sales.
15 What analogy exists between the Invoice-
Book and Cash-Book ?
Ana. — The Invoice-Book, which shows, in total,
the entire cost of merchandise, sustains the
same relation to merchandise that the debit
•;
r.
"3^
70
SALKS-BOOK, &0.
side ot ihe Cash-Book does to cash.
16 What analogy, between the Sales-Book and
Cash-Book?
Ans. — The Sales-Book, which shows, in total, the
proceeds of merchandise, sustains the same
relation to merchandise that the credit side of
the Cash-Book does to cash.
17 Will you now state the difficulty likely to oc-
cur in transactions required to be entered in
two of these books ?
Ans. — In every case involving any two of these
books, the tendency will be to debit and
credit the same accounts ttvice — effecting
thus a double entry not contemplated by the
projectors of the science and of course not
warranted by the facts in the case.
Rem. — Thus, all cash receipts being entered, at spe-
cified periods, in total, from the debit side of the Cash-
Book, and all cai>h dit>bursenients from the credit side, it
would be erroneous to enter cash from any other book ; and
the same theory will apply with equal force to the Invoice
and SaleS'Book.
18 What are the peculiar Rights of Each Book ?
Ans, — Permitting all cash entries to be taken to
the Ledger from the Cash-Book, and all pur-
chases and sales of merchandise from the
Invoice and Sales-Book respectively.
19 If the peculiar rights of each book are respect-
ed what shall it prevent ?
Ans, — It shall prevent the entering of cash in the
Invoice or Sales-Book, and also of merchand-.
ise in the Cash-Book.
20^ Give an illustration ?
BiaHTS OF EAOH BOOK.
71
Ans. — Suppose an entry to be, " Cash Dr. To
Merchandise. " All cash receipts must ap-
pear on the debit side of the Cash-Book, and
the entry on that book would be " To Mer-
chandise, " extending the amount into the
debit column.
Rem, — When the Cash-Book is posted, this amount
will be included in the total cash debit, and must comprise
one of the opposite, or credit entries. So cash would be
debited and merchandise credited both from the Cash-
Book.
*
21 Illustrate the corresponding part of the entry ?
Ans, — Again, all sales of merchandise must bo
entered in the Sales-Book, and when entered
the corresponding debit — in this case, cash
— must also be expressed. When the Sales-
Book is posted, the total for which merchand-
ise is credited will include this amount (al-
" ready enlred and posted from the Cash-
Book). to correspond with which, and to se-
cure the necessary condition of equal debits
and cjedits, cash must again be debited.
Rem, — According to this standard, therefore, in every
case where merchandise is either bought or sold for cash,
and the fact expressed through these special books, this
error of duplicating debits and credits would occur.
22 How many methods are there of avoiding
this difficulty ?
Ans,-~'T\vo methods have been successfully used
in order to avoid this difficulty — the only dif-
ficulty which stands in the way of classified
original entries.
23 What is the first method I
»<*"
"W^^wwi^W^
7Z
BIGHTS OF EACH BOOK.
Ans. — The first places the books upon an equali-
ty, using " neutralizing" accounts for the con-
flicting entries. V .
24 What is the second ?
Ans» — The second acknowledores the supremacy
of some one or more books, to which, in all
matters of conflict, the others must yield.
25 Illustrate this by the case btfore instanced
" Cash Dr. To Merchandise " ?
Asn. — If the Cash-Book an J Sale.^-Book were
upon an equality, the one claiming to fur-
nish all cash enties for the Ledger and the
other all merchandise sales, it would be im-
proper to write Cash as a Ledger tiile in the
Sales-Book or Merchandise in the Cash-
Book, for the reasons adduced. i n
26 What then could be done ? ^
* *
Ans. — A neutralizing account might be opened
to take the place of cush in the Sales-Book
and merchandise in the Cash-Book, thus re-
ceiving a debit and credit of the same
amount, which would of course cancel it.
27 Illustrate this?
Ans. — Suppose the merchandise to be sold to A,
for cash : in the Sales-Book the entry would
be "A" Dr., and in the Ca^sh-Book, * A"
Cr. The result would be the same as if A had
purchased on account, and subsequently paid
the amount in cash, thus^ closing his account*
28 What would the entry be supposing we ac-
knowledge the supremacy of the Cash-Book
in all cases where the two are concerned ?
iln«.-— When Merchandise is sold for cash, the
2
2
EIGHTS OV EACH BOOK.
n
fquali-
ie con-
jemacy
L in all
lid.
)tanced
wore
to fur-
and the
be im-
e in the
3 Cash-
opened
les-Book
thus re-
le same
3el it.
M to A,
y would
►k, * A "
if A had
ntly paid
account*
y we ac-
ish-Book
itned ?
;ash, the
entry in the Cash-Book would be " Cash Dr.
To Merchandise," both of which — the debit
of cash and the credit of merchandise — will
go to the Ledger from the Cash-Book. The
same entry can be made in the Sales-Book»
but not posted. "*
29 How is the Inventory-Book used ?
Ans, — This book is used to enumerate the differ-
ent articles of unsold merchandise, at such
times as may be deemed desirable.
30 Is this a special book ?
Ans. — It is not, but purely an auxiliary, the
amount of merchandise on hand being in-
eluded in the opening journal entry.
JRem, — Inventories are frequently copied into one of the
luToice-Books ; but a separate book is preferable.
31 What does the Iloxn^stic Itivoice-Book con*
tain ?
Ans. — It contains copies of all invoices of mer-
chandise purchased from importers, and
others in this country, with the conditions of
all such purchases.
.■■*■'
Rem, — Eaeh lot and package is distinguisbed by sditte
peculiar mark, which is transferred to the invoice, tbus
serving an important purpose in checking the articles, ad-
justing disputes, &e.
32 What entries are passed to lh6 Ledger from
this book ?
Ans, — The purchases on titn^i for which notes
are given, are passed to the Ledger from this
book ; thbse for ba^h, from the Cash-Book.
I
74
RIGHT or BAOH BOOK.
33 What does the Foreign Invoice-Book con-
tain?
Ans. — It contains copies of Foreign Invoices with
Import Duties added.
34 What does the Sales-Book contain ?
Arts. — This book contains all the regular sales,
either for cash or on time ; the cash sales
being extended in the inner column, are, of
course, not included in the amount for which
merchandis^e is credited from the Sales-Book.
Rem. — These sales, together witli the petty sales not
entered in the Sales-Book, are posted from the Cash-Book
35 With what will the total credit of Merchandise
account for the month agree ?
Arts. — It will agree in amount with the monthly
recapitulation in the Sales-Book.
36 Are all the debits and credits appearing on
the Cash-Book posted ?
Ans. — Yes, all cash entries, debit and credit, are
taken to the Ledger, eiiher ihrough the Jour-
nal or directly, from the Ca^h-Book, together
with all accounts producing or costing cash.
37 How are these amounts posted ?
Arts. — In posting from the Cash-Book, the total
of I he debit side is carried to the Cash ac-
count in 'he Ledger, a.id the items compris-
ing that amount to the credit side of the va-
rious accounts mentioned.
38 What, do the Check-marks opposite the
amounts denote ?
Ans. — The check-marks in the column following
dates, are made to indicate that the amounts
CASH-BOOK.
75
opposite in the "Sundries*' column have
been journalized. * .
39 What would be written instead of the Check-
marks were the amounts posted directly to
the Ledger?
Ans.— Were those amounts posted directly to the
Ledger, the Ledger-page would be written
instead of the'Check-marks.
40 Can the Bill-Book be used to advantage as
a principal book ?
^ns. — The BilUBcok can never, with advantage,
be made a principal book, from which lo
' post.
Rem. — For the Formulas of the different books used
in this method let the teacher refer to ** Bryant & Strat-
ton's Text-Book " whence the abo? e has been largeij
dranrn.
.
-ooo-
m^
/
Changing Double Entry to Single
Entry.
1 What does The Term Single Entry denote ?
Ans. — The term " Single Entr^, " as distinct from
**i>0M6/e Entry, '' ha? particular reference
to the fact, that for every separate Day-
Book entry, but one posting is made to the
Ledger.
2 What is usually understood to |be the Differ-
ence between Single and Double Entry ?
Ans, — It consists mainly in the fact that while
the Single Entry Ledger contains only ac-
counts with persons, Double Eniry deals
also, and in like manner, with property and
causes.
Rem. — Single Entry comprises arecord of the resour-
ces and liabilities ; ivhereas Double Entry comprises a
perfect and continual record of resources and liabilities.
3 What is the Rule for Changing Single to
Double Eijiry ?
Ans, — Open such additional accounts in the Ledg-
er as are necessary to exhibit the entire resour-
. ces of the concern,
4 If an account has been kept with Stock, what
mnst be done with the gain or loss ?
Ans, — It will be necessary first to carry the gain
or loss of the business to this account, as a
perfect record of resources and liabilities
ronnot be otherwise had.
CHANGING DOUBLB TO SINGLE ENTRY.
77
d
a
e
r-
e
9
a Is Double Entry more laborious than Single
Kntry ?
Ans. — It is not anything more intricate or labor-
ious, and it will be seen that Double Entry
is but a continuation of Single Enlry ; car-
rying out its principles to their lull symmetry
and perfection.
6 What are the Principal Advantages of
Double Entry over Single Entry ?
Ans. — The chief; advantages consist, first, in the
security afForded by the Trial Balance test
and next, in -designating the particular chan-
nels through which gains and losses come.
7 In changing Single to Double Entry, is it nec-
essary to disturb the accounts already shown
on the Single Entry Ledger?
iliw.— r-No, it is not, nor it is necessary to keep any
such accounts differently afterwards.
8 What are the most essential books in Single
Entry ?
Ans.— 'They comprise a C ash-Book, Day Book,
and Ledger.
9 For what purpose, and how is the Single En-
try Cash-Book used ?
Ans. — The Cash-Book is foi the same purpose
as the Double Entry Cash-Book, and kept
somewhat. upon the same principle.
10 What difference exists between the Single
Entry and Double Entry Cash-Book ?
Ans. — The only difference is in the ^brm of re-
cording the entries.
11 Is it customary to journalize or post from the
Single Entry Cash-Book ?
I
^mm
1
IHVI
W
0A8H-B00K.
M'
ilrw.— No, we neither journalized nor post from
the Single Entry Cash-Book, hence it is not
nercssary lo specify Ledger titles', as in
Double Entry.
12 What is the object of the Single Entry Cash-
Book f
Ans, — The object is simply to complete the record
of transactions omitted in the Day-Book, and
to keep the necet^sary check upon receipts
and di!<bursemenis ot cash.
13 What Other Books than the Day-Bonk, Cash-
Book, and Ledger are used in Single Entry ?
Ans, — It is customary to keep a Bill-Book for re-
cording Bills Keceivable and Bills Payable ;
also an Invoice-Book and a Sales-Book, for
the purpose of recording purchases and sales
of merchandise,
14 When all these auxiliaries are kept in Single
Entry, in what \viU it differ from Double-En-
try ?
Ans. — It will differ inasmuch as the Double
E'ltry Ledger will show the entire result,
while in Single Entry the result will be di-
vided among the various auxiliaries.
15 Can the Gains and Losses in business be as-
certained by Single Entry?
Ans. — Yes, \hefact of gains and losses, can be
as well ascertained by Single Entry, provid-
ed we have the the means of knowing that
the work is correct.
Process of Changing,
1)6 What is the First Requisition in opening a
Set of Double Entry Books 7
FIRST REQUISITT.OX.
7d
jifis, — The first requisition, is a statement of re-
sources and liabilities.
17 Where else is this statement necessary?
Ans. — It is also necessary in Single Entry as oft'
en as it is desirable to know the progress or
condition of the business ; either with a view
to apportioning gains and losses or for any
purpose whatever.
18 What have we in the Single Entry Ledger?
Ans. — We have a systematic record of such of
the resources and liabilitiet* as consist of per-
sonal accounts, — the remainder must be as-
certained from some other source.
19 How are we enabled to know the Original
Capital ?
Ans, — We are enabled to know it from the part-
ners' accounts inasmuch as the partners are
credited, each for his net investment.
20 If there be now, either more or less net re-
sources than this original investment what
will the result show ?
Ans. — It will show a gain or a loss as the case
may be.
21 If the result be a gain, what should be done ?
Ans. — If a gain the partners should be credited
in their proportionate shares ; and il a loss
they should be debited.
•22 What effect will this have on the resourcesr
and liabilities?
Ans. — This will again equalize the resources
and liabilities, and give a sulficient data
ior a Double Entry Ledger.
80
PROOESS COMPLETED.
23 After crediting or debiting the partners each
for his gain or loss, how is the Process
completed ?
Ans. — By opening accounts in the extended Ledg-
er with the additional resources : Bills Re-
ceivable, Cash, Merchandise, Store and Fix-
tures, &c. — these four new accounts consti-
tute the " change," and will serve to show the
exact difference in the two systems so far as
the Ledger is concerned.
Rem. — To one who fully appreciates the advantages of
Double Entry, no argument nor illustration will be neces-
sary to inforce its entire supeiiorily over any other system,
DOtwitbstanding tbe crude notions sometimes expressed
by those who.se very position should render ignorance on
so vital a point, inexcusable ; but it should, nevertheless,
be the aim of every intelligent accountant to place him-
fieif beyond the pale of prejudice, and let him not insist,
because he esteems his own way best, that there can be
no merit in any other.
It is but natural that men who have for a lifetime been
familiar with a certain routine of transactions, expressed
through a certain medium, should become unalterably at-
tached to both, and should look with jealousy upon any
thing savoring of innovation. It is the duty of the ac-
countant, who acts simply as such, to humour prejudices
of this kind, rather than abuse them, and thus show his
own superiotity, by muking even inadiquate forms convey
more substantial and extended information than their
friends and advocates have claimed for them.
-000-
Practical Hints.
1 What three qualificalions are necessary to good
accounlanlsliips ?
An*. — The three esst'nlial qualiiies are, I. Ac-
curacy ; 2. Neatness ; 3. Despatch.
2 How are these to be acquired ?
Ar[^, — These are to be acquired only through
practice,
3 In what does Neatness in Book-Keeping con-
sists?
Ans, — It C9nsists in good writing and tasteful
arrangement. It is the first which attracts at-
tention, and is of the utmost importance in
establishing a reputation lor practical ac-
countantship,
Rem, — It is a mistaken idea conceived by ambitious
youth, that the ability to form a few wondrous curves in
the execution of capital letters, £'.c., constitutes the chief
qualification of a business writer.* Practical men are not
apt to appreciate qualifications of thiH kind, but insist, ra-
ther, on the utmost modesty of display and simplicity of
arrangement.
4 What should be the Characteristics of a
Business Writing ?
Ans, — Uniformity, legibility and adaptation to
space and purpose.
, 5 What is an essential element in busines writ-
ing?
Ans, — Rapidity of execution is an ossenlial ele-
ment.
B2
SRROBS AND OMISSIONS.
6 What is said of Errors and Omissions ?
Ans, — Great care should be exercised to avoid
errors which will necessitate erasures.
7 What is said of Interlineaiions anJ Erasures?
An.9. — Nothing so destroys the beauty of a page
as erasures and interlineations. Even occa-
sional blotting is preferable to occasional
scratching.
8 How are errors sometimes corrected ?
Ans. — Where it is possible, errors should be cor-
rected by counter entries, thus aflbrding an
explination, without destroying the harmony
of the page.
9 What precautions should be observed in the
Use of Red Ink ?
Ans. — In the use of red ink great care should be
taken tojkeep it pure : and to that end, it is
never allowable to use a pen that has been
dipped in black. ' :
Rem. — Even steel pens are thought to destroy the
brilliancy of red ink, and quills are preferred on that
.account. A steel pen, however, is ihe b(-st for ruling, and
needs only to be kept perfectly clean.
10 What have you to say of Ruling ?
ji^ns. — For ruimg with a common pen, no ruler
is so convenient as the round^ but to use
it skilfully requires much practice, and a
steady hand.
Rem, — Let the student practice until he becomes pro-
ficient Ml ruling.
11 What kind of Mathematical Proficiency is
most available to the Book-Keeper.^
MATHEMATICAL PBOFICISNOT.
83
'
Jns. — The most available is facility and accura-
cy in addition —ihe ability to add long col-
umns of figmrs with speed and ceria'nty is
ono of the very best claims a yonng man can
present, for a |)osition of trnsl. A oltirlv who
^'"never makes a mistake ^^ is isiue of promo-
tion.
12 How is facility in addition to be acquired ?
Ans.— The only way it can be acquired is by
practice — faithful and continued practice,
13 What is the process of adding two or three
columns al o.ice ?
Ans. — The proces.^, is much more simple than is
generally suppohe<i ; requiring little if any
more skill than the common uieihod. The
vuily point of difficulty is the necessity of
adding units to units and tens t(> tens, &c.
Rem. — Let ihe student practice on two columns, until
be becomes thorou£^l)ly famiiiur with the process, and then
take three and fourf the necessity of keeping his mind
constantly on the alert for fear of adding tens to units, and
units to hundreds, will serve to quicken his powers of con-
centration, and develope the practical resources of his
mind.
Example : Suppose the following numberi to be added
4.G
78 -• .
93
Process : 9;J X 8=101 ; 101 X 70=171 j 17; >i
6=177; 177X40=217.
14 What is the best method of avoiding the diffi-
culties in getting a Trial Balance ?
Ans. — Undoubtedly the best method is not to
make difficulties. ,
84
TRIAL BALANCB.
Rem. — But as this advice is much more easily given
than followed, and as, in despite of the best efforts, Trial
Balances do frequently fail to equilibrate, a few hints as to
the most approved methods of discovering the errors may
be kindly received,
15 Is the Trial Balance a sure test of the correct
ness of the Ledger?
Ans, — In the first place lot it be remembered that
while the Trial Balance is not a sure test of
the correc'nrss of the Ledger, no Double En-
try lifdger can be correct that does not bal-
ance.
16 What is a Trial Balance ?
-•Ins. — The Trial Balance is simply the summing
up of the debit and credit sides of the Ledger
to a!<certain if they are equal.
17 If tlie Trial Balance prove that the sides of
the Ledger do not equal where iriusl the cau»e
exist ?
Ans. — The cause must exist either in entries
being omitted, posted to the wrong side, or
in wrong accounts.
18 Which is the First Process lo discover an
error in Trial Balance '(
Ans,^lt is to make sure thai an error exists.
Rem. — It is often the case that an overweening « sxu *¥
to have the sides of the Trial Balance equal a '.u; |!y pro-
duces suppositious error, by dissipating *he minu "fhjle
engaged in ascertaining the result, and thus perssisitsuly
though erroneously realizing iis own fears, by errors in
addition.
19 If an error seems to exist, what shouhl be done
before attempting to find it ?
/
*
mmmm
A
FIRST PROOKSfl.
85
f
. r
Ans. — One should go carefully over the work of
addition, proving the error in every way.
20 What is the Second Process ?
Ans. — Should ihe above process fail another resort
is to check the postings.
21 How is this done ?
Ans. — Thus, first ascertain that the Journal entiies
balance and then go carefully over the work,
checking in pencil mark, all entries that hive
been properly posted both on the Journal t^nd
Ledger.
22 VVhich is the most reliable Process of Check-
ing?
Ans. — The most reliable process, is to have one
person take the Journal and call off the Ledg-
er titles and amounts, slowly and distinct-
ly — the debits first, and credits next—while
another examines the Ledger entries to see if
they correspond.
Rem. — Many practical accountants adopt the plan of
thus cl)€cking before attempting to take a Trial Balance,
for the purpose, not only of facilitating the labor, but of
being assured that the Ledger is absolutely correct.
23 What is the Third Process ?
Ans. — If the error still exists, ascertain its exact
amount^ and look carefully for the same
amount in the Journal, which may have been
omitted in posting.
24 If no such amount should appear, or should
not prove to have been omitted, what are we
to ascertain next r
Ans. — Next ascertain if any Journal entries exist
86
THIRD PBOC^SS.
of half {he amount, which being posted to ihe
wrong side would produce the difference.
25 What if ihis test shouM prove unsnccessful ?
Arts. — Ascertain if ihe difference be divisible by 9,
M'iihout a remainder and if so, look carefully
for a transposition of some amount posted,
three cases of which may be easily delected
by rules founded on the peculiar properly of
the number 9. *
26 Which is the First Case of Transposition ?
Ans. — When two fmnres are made to vxchanse
places with each other, the orders in notation
reinaininjr the same : e, g, 372 made to read
S27, or 732, or 273.
27 What is the Second Case?
Ans. — When two or more figures are made to
change their places in notation, their arrange-
ment in respect lo each other remaining ihe
•ame : e, g., $4275 made to read $42750, or
£42 75, or $427.50.
28 Which is the Third Case?
Ans. — When two significant figures are made to
change position bolh wiih respect lo them-
selves and also to the orders of nolalion : e.
g., $j14 made to read 80.41.
29^ How are we lo detect the Error of the First
and Second Cases of Transposition ?
3
•m^
} ^
* It m a curious fact lliat the (difference between any •riv-
en amount composed of iwo or more figures, and the same
figures transposed, i^ divisible by 9. For example, the
dirterence between 75 and 57 is 18; between 120 and 210,
90; between 195 and 159, 36 ; &c., all of which differenceii
18, 90 and 36 are divisible by nine without a remainder.
ii
OASES 01* TRA.MSPOSITIO!f.
87
Ans. — By dividing the amount of th3 error in the
Trial Balance successively by 9, 99, 999,
9999, &c., as far as po^'sible wilhoul a re-
nnainder, rpj«'cling all ciphers at ihe right of
the last significant figure in the error.
30 What have yon to say of ihe quotients that
contain but one digit figure resulting from
the above operation ?
Ans, — They will express the uifTerence between
the two digit figures transposed, which will
be adjacent to each other if the divisor con-
tainc^d but one 9, separated by one other fig-
ure if it contained two 9s, by two other fig-
ures if it contained three 9s, and so on.
31 What have you to say of those quotients which
contain iivo or more figures ?
Ans. — They will express the 'lumber itself, which
is transposed in notation simply, the arrange-
ment ol the significant figures remaining the
same. In cither case the order of the fast sig-
nificant figure in the error will be the lowest
order of the figures transposed. 'Ihe orders
of the other fi«:ures can be easily determined
by referring to the error and applying the
principles of notation.
32 How is the Error of the Third Case de-
tected.^ - '
Ans. — Divide the error in the balance by as many
9s as is possible so as to give only a single
figure in the quotient, and ihtn the remam-
' der in the same way, rejeciin;.^ all ciphers at
, the right of the last significant figure in both
dividends after which there should be no re-
mainder.
/ti
s$
XRROB OF THE THIRD OASE.
33 What have you to say of the quotients result-
ing from this operation ?
Ans, — The first quotient will be the figure filling
both the highest and lowest order in the
transposition ; the second quotient will be the
other figure.
Rem, — If the error ot the Trial Balance by not divis-
ible by 9, it cannot be the result of transposition alone.
But whenever the error becomes so reduced as to be di-
visible by 9 without a remainder, a transposition being then
po85,ible, the above tests should be given.
i
000 •
■r i
' ^
t-
le
e
!Q
I
Technical Names of Bills.
1 What is a Bill ?
Ans. — It is a general name given to a statement
in writing.
2 What is a BiU Of Sale ?
Ans. — A writing given by the seller of personal
property to the buyer, equivalent to a deed.
3 What is a BiU of Lading?
Ans. — A list of goods shipped, having the signa-
ture of the master of the vessel, or the proper
officer of the transportation company.
4 What is a BiU of Entry ?
Ans, — A written account of goods entered at the
Custom House.
5 What is a BiU of Right? *
Ans, — A form of entry at the Custom House by
which the importer may examine his goods.
6 What is a BiU of Goods?
Ans. — An account given by the seller to the buyer*
of articles and prices.
7 What does it contain ^
Ans. — It contains the time and place of the trans-
action and the names of the parties.
8 Against and in favor of whom is it drawn?
Ans. — The bill is drawn against the purchaser
and in favor of the merchant or seller.
9 How is a bill receipted ?
Ans, — A bill is receipted by writing the worda
90
BILL or £I00D1.
Received payment at the bottom and affixing
the seller's name.
Rem. 1 — A bill majr be receipted by a clerk, agent) or
any authorised person.
Rem. 2 — When sales are made at different times, the
dates of the several transactions may be written at the
left.
10 If the party against whom ihe bill is drawn is
not able to pay it when presented, how may
he acknowledae the claim ?
Ans. — He may acknowledge it by giving a dwe-
bill. Thereby |>revenling all subsequent dis-
pute as to the correctness of the claim.
Rem. — A bill may be receipted by means of a due-bill,
(See formulas.) •
-000-
Exchange.
li Define Exchange I
Ans. — It is a term lised to denote that commer-
cial usage by which individuals are enabled
to cancel debts at a distance without the
transmission of money.
12 How is this effected ?
Ans. — Through a species of commercial paper
known as " Bills of Exchange. "
13 How many classes of Exchange are there ?
Ans. — Two classes : domestic and foreign.
14 Define Domestic Exchange ?
Ans, — It consists of drafts, notes, checks, certifi-
DOMJISTIC XXOHANUl.
91
cales of deposits, etc., the parties to which
reside in the same country.
15 What are Foreign Bills of Exchange ?
Ans. — They are bills which are drawn in one
country, but are payable in another. *
Rem. — They are generally termed Drafts.
16 How are they drawn? •
Ans. — They are usually drawn in sets of three or
more, one of which being honored, the
others become void.
17 What is the manner of sending ihem ?
. ^/25. -The separale hills are sent by different
rouifcs, or at different times, lo provide
against miscarriage, and the first that comes
to hand, if either, is honored.
18 How are Foreign Bills of Exchange made
payable }
Ans. — They are made payable in the currency of
the country upon which they are drawn,
instead of that wherein they originate.
19 What is a Bill of Exchange ?
Ans. — It is an ordt-r or draft, nidJe by one pevson
upon a second, to pay a certain sum of
money lo a thirJ, or lo his order, or to llio
bearer. (See foniiulas )
20 How many parties are concerned in a Bill of
Exchange }
jjis. — There are always three parties to a trans-
action and usually four ; Drawer, Drawee,
* The United States being separate sovereignties, ara
foreign to each other, and bills drawn in one payable ia
another are foreign bilU, though apparently inland*
IMAGE EVALUATION
TEST TARGET (MT.3)
1.0
I.I
11.25
■A£128
m
Vi
m
lit
125
|:
uo i2.0
HUU
U 11.6
C
Sdences
Corporalion
33 WBT MAIN STREIT
WiUTIR,N.Y. MSM
(71«)t7a-4S03
4r
n
BILL OF EXCHANGE.
• Payee, and Buyer or Remiller.
21 Who is ihe Drawer ?
Am. — The person making the order is so called.
22 Who is the Drawee ?
Ans. — The person to whom the order is address-
ed.
23 Who is the Payee ?
Ans. — The one to whom the amount is made
payable.
24 Who is the Buyer or Remitter?
Ans, — It is the person who purchases the bill.
Rem. — He may be himself the payee, or the bill majr
be drawn in favor of any other person.
25 When does a person become Acceptor?
Ans. — Tf the drawee accepts, he then becomes ac-
ceptor by writing his name across the face
of the Bill, under the word " Accepted. *'
26 What is the instrument then called ?
Ans. — It is called an Acceptance. r
27 If the Payee writes his name upon the back
of the inslrnment, what does he become ?
Ans. — He then becomes an Indorser.
28 How is the person called to whom it is after-
wards transferred by indorsement ?
Ans, — He is called an Indorsee.
29 What is the Face of a Bill of Exchange ?
Ans. — It is the sum ordered to be priid ; it is usu-
ally expressed in the currency of the place
on which the draft is made. - ,.
mm
PAR OF EXCHANGB.
^
30 What is the Par of Exchange ?
Ans, — It is the eslimated valae of the coins of
different countries as compared with ihose of
another.
Jlem. — It is divided into trinsic and commercial.
31 What is Intrinsic Par of Exchange ?
Ans, — It is the comparative value of the coins of
different countries as determined by their
weight and purity.
Rem. — Two sum sof different countries are intrim ;
cally at par when they contain an equal quantity of the
same kind of pure metal.
32 What is the Coinihercial Par of Exchange ?
Am.^M is the comparative value of the coins of
different countries as determined by their
market value.
Rem. — 'JVo sums of different countries are commer-
dally at par, when tliey can purchase an equal quantity
of the same kind of pure metal.
33 What is the Course of Exchange ?
Ans. — It is the current price paid in one place for
• bills of exchange on another place.
Rem. — This price varies, according to the relative con-
ditions of trade and commercial Credit at the two places
between which exchange is made. Thus, if Boston is
largely indebted to Paris, bills of excbangie on Paris will
bear a high price in Boston. . ^
84 What is Direct Exchange?
Ans, — It is that exchange which is confined to
two places between which the niohey is to be
remitted.
\
I .
04
DIRBOT IXCHANam.
Rem. — One person is said to draw on another person,
when he is die maker of a draft addressed to that person,
35 What is a Sight Draft ?
Arts. — A Sight Drat or Bill is one requiring pay-
ment to be made " at sight '' e. i., at the time
of its presentation to the person ordered to
pay.
36 What are Time Bills?
Ann. — Those requiring payment at a certain spe-
cified time alter sight or after date.
37 When are others payable ?
Ans, — All other Bills are payable on demand.
38 When Time Bills are drawn " Acceptance
received, " what shocid be done with them ?
Ans. — They may be held till maturity before
being presented to the Drawee ; otherwise
they should be presented immediately for
• acceptance.
1
tW»
lU
Promissory Notes.
1
39 What is a Promissory Note ? •^/-
Ans, — It is a written agreement by one parly to
pay to another a specified sum at a specified
time.
40 Who is the Maker ? , . ,
Ans, — The one making the agreemer/ or signing
the note, is called the Maker,
41 Who is the Payee f .
patxb;
U
ilws.—The person to whom the amount is made
payable.
42 Who is called the Holder ?
Ans. — The ovvrif^r of the nole is so called.
43 Who is ihe Principal?
Ans. — It is the one directly responsible for the
payment of a Bill or Note at maturity.
44 What is a Joint and Several Note ?
A7ts. — It is a note signed by two or more distinct
parties, in which rase each one becomes
liable as maker or principal, />
45 Mention some of the Features of a Valid
Promissory Note ?
Ans. — A full conj^ideratian is implied from the
nature of the instrument, but a want of
consideration would be a valid defense on
the part of the maker as against the payee.
46 Would a want of full consideration be a valid
defense on the pari of the amaker as against
any other holder into wn(isi possession it
may have come without a knowledge yf such
want of consideration ?
Ans.— It would be no defense and this third par-
ty would be called an innocent holder,
47 With what may a Promissory Note be written ?
Ans. — It may be written with iok, or pencil, or it
may all be printed except the signature,
which must always be ii\,lne hand writing of
the maker or his authorized agent.
48 Mention some of^er features of a valid Pro-
missory Note ?
Ans, — It should be an unqualified promise to pay
(
96
FEATURES OF A VALID FQOMISSORY NOT£.
in mone)^ definite in amount, and indepen-
dent of ail contingencies.
49 Where and how should the amount be ex-
pressed ?
Ans. — The amount should be expressed in the
body of tne note, in words, and should be re-
lied on for accuracy rather that the figures in
the margin.
50 If the time is not definitely stated, when is it
payable ?
Ans. — It is payable on demand.
51 If the place of payment is not specified where
is it payable ?
Ans,-- It is payable at the place of business or the
residence of the maker.
'000-
Negotiable Paper.
62 What are Negotiable Paper?
Ans.— Bank potes, checks, certificates of deposit,
bills of exchange, and promissory notes, when
properly drawn are negotiable, except when
made payable by the terms of contract to
one person only. . - •
83 What if the amount i^ payable to " bearer *'
or is subject to the " order ' df the payee ? .
Ans. — They are negotiable.
64 When neither the word ** bearer '* tioi^ " order "
appears in the instrument but simi^ly the
name of the payee, is it hegoti(!iblb ?
-i\
'a
4i
.mi.iii
NXOOTIABLS PAPER.
97
Ans. — It is not negotiable, and the Payee cannot
give ihe full title to a third party.
55 Why nan he no* give the full title to a third
. parly ?
Ans, — For the reason that the account, as be-
tween the Maker and Payee, would still be
subject to a garnishee process froin other
creditors of the Payee.
56 In how many ways may the Transfer of Ne»
gotiable Paper be made ? Name them ?
Ans. — Two : viz., by delivery or by indorsement.
67 When is the transfer made by delivery 9
Ans,— When payable to " brarer, " or to the
Payre ** or bearer, " as are Bank Notes and
most Checks. ,
58 Whon, by indorsement?
-4w5.— When payable " to the order of " the
Payee, or to the Payee *' or order. "
59 How many kinds of indorsements are there ?
Ans. — There are two : blank and full or special
indorsements.
60 What is an Indorsement in Blank ?
Ansi — It cr.nsists in the Payee simply writing his
name across the back of the paper ; this is
afterward negotiable by delivery.
61 What is a Special or Full Indorsement ?
Anst—Xi consists in making the bill payable to
the order of another person, called an Indor-
see, to which is added the indorsement in
blank. . . ; ^ . .,,; -.: -;
Rem. — This is now negotiable only by tlie indbrsement
of the Indorsee. — Example : Thus an Indorsement in full
{■
98
SPECIAL OK FULL 1ND0RSE3IENT.
hj A. B. is usually in this form : " Pai/ C. D. or OrdeVy **
and signpu " A. B. " Its effect is to make the bill pay-
able to C. D., or his order only.
62 When the Iiulor-spment is in blank, can any
legal Holdt^r make it an indorsf-n^fnt in tuil ?
Am. — Yes, any Irixal Holder U allowed lo write
'^'(hat above it, which will make it an indorse-
meni in full.
jfjewt. — He may also convert a special into a hla7ih
indorsement by striking out the words that made it
.ir an indorsement in full,
63 What is a Qualified Indorsement ?
Arts, — Ii is one thai affects the liability of the
indorser, but not the negotiability of the
paper, hs when made " without recourse, " ^
64 What kind ot Consideration is necessary to
-^' support a Pro^nissory Note ? ••
Ans. — A valuable consideration is necessary, not
one founded on mere love or affection. ^ '. i . ;
Rem. (1). — A note drawn as a gift to a relative or to a
friend cannot be enforced as between the original parties :
a consideration which thfi law esteems valuable must
exist, in order to furnish a just foundation for an action.
Rem. (2). — Illegal consideration also will render a note
Toid ; as when given for the purpose of crime. v
"*■
65 Do any cases exists in which a note is void
in the hanis of innocent indorser for a valu'
able consideration ? .,.-...>
ilns.— Yes, there are two cases ; and these are,
when the consideration in the note is money
won at a play, or where the money is given
for a usurious debt.
QUALIFIED INDORSEMENT.
99
f>
66 Mention the two forms of written obligation,
known as '' Negotiable Paper ? *'
Ans.-^A Note and a Draft or Acceptance.
67 What is the It^gal value of each and in what
do they differ ?
A?is. — They are precisely similar in their legal
value, and differ only in form from the dif-
'^ ferent circumstances of their origin. . ,^
68 With whom does a Note originate ?
Ans, — With the Payer and is a voluntary promise
pay.
69 W^ith whom does a Draft originate ? ' - »^
Ans. — With the person on lohose account the pay^
ment is to be made, and is usually in the
form of a request.
70 What is necessary to make the one equivalent
to the other ?
Ans. — It is necessary that the person of v/hom
the request is made, should respond, which
he does by writing across the face " Ac-
cepted, '* and signing his name.
f? Rem.-'Thi^ is now as virtually a " Promise to pay " as
the ether, and there is no commercial difference between
the two. './jh t^^i'Oj i."'-''"T :' " .' '/•;: "■. »
no
'L
71 Does there exist any Bessemblande be-
tween a Bill of Exchange and a Promis-
sory Note in its original lorm ?
-4ws.--No, a Promissory Note in its original
form of a promise from one person to pay a
sum of money to another, bears no particular
resemblance to a Bill of Exchange!.
72 When does a resemblance exist ?
100
IND0B8£R.
Ans. — When the note is indorsed there is a very
great res«rnbl nice, for the.i it is an order by
the |nd()r>er to iht* Makrr of the noie to pay
the money to ihe Indorsee.
73 To what party in a Bill does the Indorser of
a Note corif j'pond ?
Ans.— To the Drawer of the Bill.
74 To what party in a Bill does the Maker in
>ioi<* correspond ?
j[ns. — To the Drawee or Acceptor,
75 To what party in a Bill does the Indorsee in
a Note coneppond ?
Ans." To the Payee.
76 Are the rights and obligations of these corres-
ponding parlies the same ?
An8. — Tht'y are nearly or quite the same.
77 In what do Checks differ from Bills of Ex-
change ?
Ans.- In the following respects : —
Isl. They are alwavs drawn on a bank, or on
bankers, and are payable immediately on
presentment, without any days of grace.
2d. They require no acceptance as c^stinct f.om
payment.
3d. They are always supposed to be drawn upon
a previous deposit oi* funds.
BfM. — Til order to inaV»* tb*" drawer liable, in rase the
chei k i^ <)i>bonourerl, tht; holder must present it for pay-
Uipni within a reasonable tiin*>, andif dishonored, must ^ive
the drawer notici thereof within a reasonable time also*
78 ^Vhat is a Check on a Bank ?
An$, — It is a wriiten order addressed to a bank,
or to persons carrying on businessrof bankers,
'^-
LIABILITT CONNBCTID WITH NXOOTIABLI PAPXB. 101
by a person having money in their hand?, re-
^' quisling them to pay lo another perscn, or to
bis order, a certain sum of money mentioned
in ths check.
000
Liability connected with Nego-
tiable Paper.
78 What do you understand by an Innocent
Holder ?
Ans. — It i.«« a person who, in good faiih, for a
valuable consideration, receives Bank Notes,
Checks, and oiher paper negotiable by de-
livery 9
^wt.— Should the party from whom they were received
have outaiiieil them frauilulentlj, be (ihe innocenl holder)
may legally retain them.
79 Are Bank Notes a good tender ?
Ans.— -'They are, if not objected lo at the time of
payment, uniess it should appear afterwards
that they wert», at the ii»ne of payment, worth-
less, or of less value than represented, as
when counierleit, altered, spurious, broken
or uncurrent.
80 What should be done when these Notes are
iound to be counterfeit or altered, &c. ?
An$. — They should be returned immediately^ as
any unreasonable delay to return them, after
the discovery is made, whereby the Payer
loses the opportunity or iiieans of indemnity
would throw the loss upon the Payee or
Holder on account of the neglect.
102 DUTY OP A PERSON RECEIVING A CHKOK.
T^
^
81 What is the Duty of a Person receiving a
Check on the Bank ?
Ans. — It is his duty to present it for payment at
the Bank, during the same or the next day^ at
furthest; otherwise he holds it at his own
risk, the loss being his if the Bank fails in
the meantime, provided that the funds were
there to meet the Check before the failure.
82 If he lives at a distance from the Bank what
must he do? •„ .
Ans. — He must send it for collection by mail, dur-
ing the same or next day.
83 What, if the Cheek passes through the hands of
several persons ?
I
Ans. — If so, each one is allowed one day, and his
liability, so far as above described, ceases
V with the succeeding day.
84 How may this mission be fulfilled ?
Ans. — Bank Drafts or ^' Bankers' Exchange, "
from their services in making remittance to
distant points, may be used to fulfil this
mission, but should not be allowed to lie still
or circulate as money beyond ihe reasonable
expeciation of tUe Drawer.
85 What follows when the Holder of a Check gets
it certified as good by a Bank on which it is
drawn ? , ,.
: < ' ' .V.
Ans. — The Drawer is released though the Bank
fail to pay. ;/ .-w,; : vi .. ; i , -lir
Rem. — As between the maker and payee of a note the
maker is allowed any defense that would be allowed in any
other debt between the two. But as between the maker
PRINCIPAL ON A PROMISSORY NOTE.
103
a
A'
{
and indorsee, or other holder no defense can he set up, ex-
cept it be shown that the holder had knowledge, at the
time of the note's coming into his possession, of a just
ground of defense between the maker and payee. If how-
ever the note came into the possession of the holder, after
it become due, the claim of the holder would be subject to
all the equities in favor of the maker that existed at matu-
rity, or that had arisen after maturity.
86 Who is Principal on a Promissory Note?
Ans. — The Maker U Principal and is directly res-
ponsible lo any bona fide Holder. ' *
87 When and how are Indorsers Responsible?
Ans, — When the Drawee fails to make paynnent,
and in the order of their indorsements are se-
parately responsible for the payment of the
Bill.
Mem. — The liability of those who indorse as guarantors
is not so easily discharged by a failure to gi,*^ prompt no-
tice of non-payment.
88 When does a Bill of Exchange involved a di-
rect liability ?
Ans. — Only when presented for acceptance.
89 If acceptance be refused by the Drawee, what
follows?
Ans. — The Drawer immediately becomes Princi-
pal, and is bound to redeem the Draft from
the Holder without delay, though it be a Time
Draft, and the lime not yet expired.
90 What follows if the Bill be accepted ?
Ans. — The Acceptor becomes Principal, the same
as the Maker of a Promissory Note, in which
case the Drawer sustains practically the posi-
tion of first Indorser, in case of non-payment
on the part of the Acceptor.
104
LIABILITY AVOIDED.
gi To what is the liabllily of Indorsers on Bills
equal ?
Ans. — The liability of inciorsers on Bills is the
hatiie as of those on Promi>S'ory Notes.
92 How IP th*^' Liab'lity Avoided in both rases }
Ans. — By the Inciorser!^ wriiing ovt r their Indorse-
ments ** without recourse, " or oiher words
ot equivalent signification, except so far as
to warrant thai the Bill or Note is genuine.
93 When again are indorsers released from liabil-
ity?
il««.— If not duly notified of non-acceptance or
non-;>aynient, the paper having been duly
presented.
94 How does a discharge to the acceptor aflec^
{he other parlies concerned in a Bill ?
Ans. — It IS also a discharge to all other parlies
concerned therein
95 Ho'vV does a discharge to an Indorser affect
other parlies C'>ncerned ?
Ans.— h is no disclmrge to prior Indorsers, but
.,. it is to all subsequent Indorsers.
96 vvhai is an Accommodation Paper ?
Ans. — It is a N.;te made or a Bill ol F^xchange ac-
cepted by a man who lends his name and cred-
it for the aocotnrnodation of another j)arly.
97 To what extent does he become liable.
Ans. — He thereby becomes liable to any bona
fide Hokur, lo ilie same extent as if he had
received a full con>ider»tir^n, except to the
person for whose accommodation the credit
was given.
98 Has be any claim for his indemQity 7
PBESENTMEMT.
10&
8
e
Ans. — Yes, he hns a valid claim on the party ac-
comn^iodaled.
9
IS
■000-
Presentment. *
99 What havpyoo to remark on fleiay in present-
ing paper lor payment or aceepianee 9
Ans — There :»houl<l be no uimecessarv delay in
prejieniing for p^iymeiit any pnper payable on
presentation, and for accepiance all tiine
drafts (unless drawn, " acceptance waived''),
espeeialiy if the lime of maturity i** to be de-
termined by the lime of sighl or prestMiiment.
100 When the lime is definitely fixed by the date
of ihe instrument or ot the accepiance, when
must il be presented ?
Ans — It must be presented for payment on the
exact day of maturity^ as regulated by the
law of Ihe place where it is made payable,
lOi What would be the consequence if one tailed
to present on the exact day of maturity 9
Ans» — A protest would be of no avail on any
other day.
102 By whom most the Paper be presented and
to whom r
* As a work of this kitnl cannot b^ pxi*ee»c«i to giv».» the
dHailsof all the paitienlarA uece'-'^ry lo be ob-'ervwd by
the holiler of n bill or note, in rnhki'i;^ a pniper demanJl
for |)»ym«nt, and, in the case of non-pMympni, in properly
notifying the indorsers so thai they m ly not be released
from liability— business men, unless thoroughly ported,
should intrust their colleolions with some responsibl*
banker.
106
PRESENTMENT.
Arts* — The Paper itself must be presented by the
Holder perjjonally io the Acceptor or iNlaker,
or (heir authorized agmt. at the place where
it is made payable, during seasonable busi-
ness hours.
103 If no such per<5on or agent is found with
funds to meet it, how may il be treated ?
ilns.— It may be treated as di^^honored.
104 What should be done with the Paper in case
of non-payment or non-acceptance .•*
Ans. — Ft should be protested, and the Drawer and
' Indorsers notified.
106 What is a Protest?
Arts. — It is a formal declaration on behalf of the
Holder, drawn up by a Notary Public,
against any loss to be sustained by the non-
*' acceptance or non-payment of a Bill.
Jiem 1. — The failure to protest a note on the third
day of grace releases the indorsers from all obligation to
pay it.
Item. 2 — Upon non-acceptance of a Bill, if due notice
thereof has been given to the antecedent parlies, the Hold-
er can insist upon immediate payment of the Bill from them.
106 What is a Notary or a Notary Public ?
Ans — It is an c ffioer authorized by law to attest
documents or writings of any kind to make
them authentic. .
107 Besides the drawing out of a declaration,
what else has the Notary to do .? •, <.ri »nii
4ha\— He should moreover personally make due
presentment or demand, and should on the
same day, or, at furthest, the next day send
'
►
NOTICE.
107
e
1 written notices of protest to the parties to be
notified.
108 What if the residences of all the indorsers
be not known ?
Arts. — He may send all the notices under one
cover to the lasi Indorser, who is allowed bat
one day to forward the notices to antecedent
Indorsers ; so also for each of the others. " '-
109 When the parlies reside in the same town
how are notices served ?
Ans. — They must be delivered in person or by a
messenger.
Rem. — Notices to all others must be sent by mail.
110 What if an Indorser writes over his name
" waivins^ demand and notice. " ?
Ans. — A protect is not necessary lo retain his lia-
bility.
111 What Liability exists connected with
Presentment or Acceptance ?
Ans-^li' 3. Bill be drawn [)aydble at sight, or at a
certain period after sight or after demand it
is absolutely necc^ssary that the Holder pre-
sent it lor acceptance.
112 Why is presentment thus necessary ?
Ans. — For the reason t-iat until such presentment
there is no right of action against any party,
and moreover, unless it be made within a
reasonable lime, the Holder generally lo^es
his remedy against antecedent party's.
113 Is Interest recoverable on a Promissory Note
in which there is no special agreement lo
pay Interest ? -\ v '
i\.
•|i-
108
INTIBE8T.
Ans — Yes, it is recoverable from the time when
ths principal becomes due or ought to have
been paid.
Rem. 1. — A note, payable on demand, carries no inter-
est till a demand iii mdde, unless tliere is an agreement to
pay Interest.
Rem. 2. — A Note not on demand, in which no time of
payment is mentioned, draws Interest from date.
114 When can we certify to a special agreement
to pay Interest ?
Ans. — When the words " with use " or "with in-
terest, " are contained in the note.
115 When is a Note Outlawed?
Ans, — It is said to be outlawed six years from
the time it becomes due.
Rem. — The Statute requires that all actions, founded
upon any iniitrument or contract not under seal, must be
commenced wiihin six years next after the cause of action
occurred, and noi after. '
116 What are Deeds ?
Ans, — All instruments under seal are deeds ; but
the term ** deed " is generally understood as
applying to land conveyances.
Rem. — The consideration of a deed may either be good
or valuable.
117 U-pon what is a good consideration founded ?
Ans. — It is founded upon natural love and affec-
tion between near relations by blood.
118 Upon what is a valuable consideration found-
ed?
Ans.^lt is founded on something deemed valua-
ble, as money, good service, or marriage.
I
DSSDS.
109
Rem. — Kvery deed or contmct is void when made for
any frandiilfnt purpose, or in violation of law.
U9 WhntisaBond?
Ans, — It is an a^ knowlodjyoment, under seal, of
a debt, duty, or obligation.
Rem. — Tt immaterial whit mode of expresMon is used,
provided ihf language be sufficient to establisti an acknowl-
edofement of a debt. ;<
120 Does a bond imply a consideration ?
Ans. — Yes, every bound in itself imports a con-
sideration.
121 Is the failure of the consideration a good de-
fense to an action brought on a bond?
Ans. — h is not a good defense.
Rem. — Wax or s«m*» other tenacious substance, is nec-
essary in order to make a legal seal, except it be the
seal ot a court or public officer.
122 What is a Chattel Note ?
Ans,— Any note that is payable otherwise than
in money is so called.
Rem. — A promissory note is payable in money only.
123 Are Chattel Notes negotiable?
Ans. — They are not negotiable and cannot be
sued except in the name of the Payee.
Rem. — No days of grace are allowed on this kind of
notts.
124 What is the duty of the Maker of a chattel
note payable in specific articles at a speci-
•* ' fied place?
Ans. — ^^it is his duly to tender the articles at that
place, and at the time the note becomes due.
no
CHATTEL NOTE.
126 Whal if the Maker neglect to make the above
tender ?
Ans. — He will he liable lo pay the amount in
money to the Payee.
Rem, — But if, on thp other hand, the maker tender
the articles m< nlionrd in ihe note at the proper time and
place, acron]ing !o the contract, and the creditor neglects
or refuses to receive them, the debt is thereby discharge ;
but the right of property in the articles tendered p?»<i^p«« to
the creditor. The debtor may abandon the goods t.-tidered ;
but if he elects to retain possession of th^m, he -vlll h^^ roM-
sidered as bailee of th.' creditor at his (the creditor'.-) li^k
and expense. The relation of debtor and creditor would in
such case be change to that of bailor and bailee.
CHATTEL MORTGAGES.
Every mortgage, or conveyance intended to operate as
a mortgage, of goods and chattels, vthich shall not be ac-
companied by an immediate deliverey and contilnnp'l fli^nge
of possession of the thing's mortgaged, is absohttdy void,
as against the creditors of the mortgagor, subsef|'inii pur-
chasers, and mortgagees in g0(«d faith unless th»^ inorgii^o,
or a true copy thrreof, be filed in the office of the cierk
of the town where the mortgagor resides at the time of the
execution thereof.
Wilhm thirty days next preceding the expiration of a
year from the filing a chattel mortgage as aforesnid, a true
copy of such mortgage, with a statement exhibiting the in-
terest of the mortgagee in the property mortgaged, should
again be filed with such clerk. *-'•'
After default in the payment of a chattel mortgage, the
mortgagee's title to ihe property mortgaged becomes ab-
solute at law, dndhe is entitled to the immediate possession
thereof. ,, . . , ..i. ,, . ■ .» v*
> )> POWER OF ATTORNEY.
A letter or Power of Attorney, is a written delegation
of authority, by which one person enables another to do an
net for him. „, ^. , , , ,,,
••t- •s;
-fi, ,. »it'.»
POWER OF ATTORNEY.
Ill
ve
ill
ep
n(i
>
When a power is special, and the authority linoited, the
attorney cnnnot bind \\U principal by any act in which he
excf-eds »hat aulliority ; bnt the authorily of the attorney
will be so construed as to include all necessary means of
exernling it with effect.
When the power is in writing, and subject to the in-
spection of the parly, no good reason exist for binding the
principal beyond the scope of it ; though in general he who
employs an agent or attornt^y shall lose by his fraudulent
or illegal acts, in preference to an innocent third person.
in
-000-
Testimony of Account Books.
i '
126 What is the most established law of testimo-
ny .?
Ans. — That a person shall not be permitted to tes-
tify for himself, or, in other words, manufact-
ure his own testimony.
127 Is there an exception to this salutary law ?
Ans, — Yes, from the necessity of some cases an
exception does exist
128 What is this exception?
Ans. — The law allows a person to furnish testi-
mony for himself by admitting his Account
Books, under certain restrictions, as evi-
dence in his favour. .
129 To what is this testimony liable ^
Ans, — It is liable to the strictest scrutiny, and is'
112 TESTIMONY OF ACOOUMT BOOKS.
ronsiidered by courts as the moi^t suspicious
hind.
130 What fucts would a person be obliged to prove
in ordrr to intitle his book&> to be received iu
evidence for himself?
Ans. — He must prove the following facts : — lst«
That he had no clf»rk, 2nd. Thai the books
produced are his Account Books. 3rd. That
some of the articles charged have been deliv-
ered. 4 h. That he keeps fair and honest ac-
connt5», and this he must show by those who
have dealt and setlUd with him.
131 Are Account Books received as evidence of
mon; y lent, or money received or expended
for the use of anotiier?
Ans. — No, ihey are never received as evidence in
the above cases ; nor are ihcy evidence of a
single charge.
10U9
t %
irove
d iu
-1st.
ooks
riiat
tliv-
l ac-
who
le of
ided
;e m
of a
Forms of Bills, N"otes, Drafts,
Checks, &c., &c.
9 t
■
:>f
^ .,-.1 i.^
ff' l' r fi nlf l W II II I i m ill l hl l t m i r ii nl MIl n n I
.'..UL'^
.jr>:{
f
< .% .
Bills.
1
:i .1
Monlrealf Juli/ Itt.f 1B70
Mr. THOMAS HANRATTY, "" *
Bought op William Johnson.
10 lbs. Butter @ 15c. $1.50
50 lbs. Sugar 10c. 5.00
. 24 lbs. Pearl Starch ©12^0. 3.00
20 lbs. Dried Apples @ lie. 2.20
15 lbs. Rice @ 5c. 0.75
12 lbs. Tea @ 60c. 7.20
4i
JV
' ■/.
Received Payment,
$19.65
WILLIAM JOHNSON,
.r! 1
J» r
Montreal, July 2nd., 1870.
Mr. FRANCIS HART,
1869. Bought of James Smith.
June ■'5. 9 yds. Silk @ IJl.OO $ 9.00
" " 12 yds. Muslin ....@ 20 2.40
Sept. 12. 5 yds. Broadcloth.® 5.00 25.00
« '•' 2 Cravats @ 1.25 2.50
Nov. 5. 5prs. Boots @ 5.00 25.00
,. % '^ ««*•*••
Received Payment,
$63.90
JAMES SMITH,
;per Dawson.
116
BILLS.
%
' Toronto, Jan. 2Ut., 1870.
Mr. H. J. GIBNEY,
1869. To Rice Lewis, Dr.
Feb. 3. To 5 doz. Rakes @ $ 1.50 3 4.50
" 7. ** 2 doz. Hoe? @ 6.00 12.00
Apr. 10. *' 4 doz. Scythes.... @ 10.00 40.00
. ir 5. " 1 Mill @ 25.00
$81.50
Recmed Payment by due-bill)
Jan. 10, 1870. RICE LEWIS.
NeW'TorJc, Feb. 4/^., 1870.
FITZGERALD & Co.,
To A. T. Stewart, Dr.
1869.
Sept. 12. To 10 yds. Cambric @ 10c $ 1.00
« " " 50 yds. Sheeting @ 12^0.... 6.25
Oct. 18. " 12 yds. Cas8imere....@ $1.50 18.00
« 20. " 30 yds. Print @ He 3.80
Deo. 15. " 20 yds. Velvet @ 3.00 60.00
Cr.
$88.55
Sept. 1. By40bu. Coal ....@ 12Jc $ 5.00
Nov. 20. '' Caj^h @ 40.00
«< 22. " 5 Cords of Wood @ 4.00 20.00
$65.00
BalsDce due $23.55
Received Payment,
A. T. STEWART,
. per DoTLB.
0.
R.
Form of a Set of Exchange.
EXCHANGE for £1,000.
New-York^ June 1, 1870.
Ten days after sight of ihis my first Bill of Ex-
change, (second and third of thv same date and
tenor unpaid) pay to Mr. T. THOMPSON or order,
One Thousand Pounds Sterling, value received,
with or without farther advice.
A. T. STEWART.
To RICHARD EVANS & SOxV
Liverpool^ England,
•1
EXCHANGE for £1,000.
NeiO'Yorky June 1, 1870.
Ten days after sight of this my second Bill of
Exchange, (first and third of the same dale and
tenor unpaid) pay to Mr. T. THOMPSON or order,
One Thousand Pounds Sterling, value received,
with or withqut farther advice.
i, • A. T. STE\VART.
To RICHARD EVANS & SON
' Liverpool^ England,
■I
118
FORM OF A SET OV EXCHANaB.
i.'
».J
.. '^:../
EXCHANGE for £1,000.
NeW'Y,rk,June,l\S10.
Ten days after sight of this my third Bill of Ex-
change, (tirsi and second of th^ same date and
tenor unpaid) pay to Mr. T. THOMPSON or order,
One Thoaj^atid Pounds Sterling, value received,
Willi or without further advice.
^ ^ A. T. STEWART.
To RICHARD EVANS &
Liverpool^ England
.jv
: wSON,)
h * i^l i ;"
-000-
Notes.
''K ^ MOXS
ki i■i^^\)^•*i'>^>. V'r:; -^^1; *i ^-k^" •>
y^^H' i Individual Note,
$500. ^^'^ Montreal, June 10, 1810^
Ten days after date, I promise to pay W. B.
Forbs or order, Five Hundred Dollars, value re-
ceived, .4
f CHARLES FITZPATRICK.
NOTES.
119
■"2 •
Joint Note.
$2,000 Quebec, March 16, 1870.
Fifiy days after date, we promise to pay James
Smith or order, at Union Bank of Lower-Canada,
Tv70 Thousand Dollars, value received.
WILLIAM MOORE.
• ' THOMAS CLARK.
Joint and Several Note, (with interest).
$10,000 Toronto, Feb. 5, 1870.
, Three months after date, we or either of us pro-
mise to pay William Ford or order, Ten Thou-
sand Dollars, value received, with interest from
date.
JOSEPH HINDS.
ARTHUR SPENCER.
ij>-
>
■' • « .
,1>' Vi 'M.v
-I J '. . . - Principal and Surety Note.
$900. ' ' ■ ' Kingston, March 3, 1870.
Ten days after date, I promise to pay James
Richards or order, Nine Hundred Dollars, value
received.
JAMES O'CONNOR, Principal
WILLIAM I>UNN« Surety.
120
MOTKS.
I 6.
Chattel Note.
$200 Hamilton, July 2, 1870.
Six months after date, for value received, I
promise to pay to William Power or Onier, Two
Hundred Dollars, in Wheat, at the then market
rate, the same to be delivered as per his order,
within the limits of the city of Hamilton.
JOSEPH FULTON«
6.
Non-Negotiiible Note.
6800. 0/toti?a, Jwnc 14, 1870.
Three months after date, I promise ♦o pay
James Annelt, Eight Hundred Dollars at his of-
fice. "■ ^
DAVID MOORE,
'■■• 000 ;--• -.''-'v.
Drafts.
Time reckoned from sight.
$725. Toronto, May 10, 1870.
At twenty day's sight, pay lo t' e order of Wil-
liam Clarke, Seven Hundred and Twenty Five
Dollars, value received and charge it to the ac-
count of
MICHAEL HARRINGTON.
To DAWSON BROTHERS
Montreal.
SRS, I
Mikm.
m
^ 1S70.
ved, I
, Two
market
order,
LTON„
Reckoned from Date,
$300. London, Ont, July 2, 1870.
Ten dj^ys afier sighi, pay to ihe order of Ber-
nard Wallaco, Three Hnndred Dollars, value re-
ceived, and charge to my afcount.
EDWARD McCarthy.
To PETER IIANRATTY, I
Ottawa, i
, 1870.
♦o pay
his of-
OORE,
. 1870.
»fWil-
r Five
he ac-
TON.
Due Bills.
• 155.
JFVir Cashj Drawing, Interest.
Kingston, Ff!b. 12, 1870.
Due John R. Spencer One Hundred and Fifty
Five Dollars wiih iMt«*r^^t from date.
WILLIAM T. ROBERTSON.
^■'tf
3
For Merchandise without Interest.
1^237 50 New Fork, Mar. 5, 1870.
Due John R. McDonald Two Hundred and
Thirty Seven Dollars Fifty Cents, payable in Rye,
at market price on ihe first day of October next.
HENRY McKERNAN.
nt^kfin
Orders.
To apply on Account,
Montreal, April 10, 1870.
Mr James Williamson will please pay to the
bearer, Seventy Five Dollar:}, in Merchandise on
xny account. : ;
ROBERT FAIRBANKS.
2
In full of account,
Oltaioay Nov, 12, 1869.
John J. Donoghue Esq.
Please pay to Michael O'Donnell or bearer,
Three Hundred Dollars, from your store, and this
fihall be your receipt in full of my account.
JOSEPH B. MOORE.
■000'
Beceipts.
On Account,
WOO. — Received, January, 14, 1870. Two Hun-
dred Dollars, on account of Peter Cooper.
THOMAS HANRATTY.
k
RECEIPTS.
123
-^
a
*-*) ■« » •»* .•«.#i-
In full of all demands,
$630. Kingston, Mar, M , ISIO.
Received of George B. McArdie, Six Hundred
and Tiiirty Dollars, in full of all deuiand:*.
THOMAS BAKKR.
3
To apply on Contract.
$4,000. Hamilton, Mar. 2, 1870.
Received of William R. Doyle, Four Thousand
Dollars, the same lo apply on contract for buid-
ing house, dated Febuary i4, Ib70.
" JAMES McDonald.
* to apply as an Endorsement.
«100. Ma3/2I, 1870.
Received on the within note, One Hundred
Dollars.
GEORGE BROWN.
Receipt for Properly.
Montreal^ May 1, 1870*
Received of Peter Jones, the following enumer-
ated articles to be held in trcst for him, and re-
turned on his demand : one Gold Watch (Hunting
124
HSCXXtf04
.
c?i!»p>, tWA promi!»!»ory notp^, each dal*»d Marcli
10, 1870, and signed by J«)^«pp!l ('umiiiings* — one
for Fivt* Hundred DoilaKS dne in tJirrt* rnonihs
from dnti*, and one for Eight Hundred Dollars,
due in four monlhs from date.
JAMES HOPE.
Checks.
1.
Payable bearer,
$700. Montreal Bank. HomiUon^ Mar 10, 1870.
Pay to Thonnas McNamara or Bearer, Seven
Hniulred Dollars
(No. 1527.) W. J. ROSS.
Payable to Order,
$1,000. Merchant's Bank. Toronto^ July ^ ^ ^ 1870 ^
Pay to Charles R. Stewart or Order, One Thou-
sand Dollars.
FRANCIS HANNAN.
Certifllcate of Beposite.
Bank of Upper-Canada.
$900* Loadon, Ont May 9, 1870.
W. M. Robinson ha." deposited in this Bank,
Nine Hundred Dollars, payable to Henry T. Ken-
nady t>r Order, on return of this certificate.
(Na ttdS.) JAMES THOMPSON.
L^
• ♦
IN
JOURNALIZING.
'r
l! •
I
i
'^ ' ' f A ^
2 '*■
CntT"!
Exercises in Journalizing.
IVIiai will be your Journal Entry 9
1. Sold D. W. Clark, on account Merchandise*
$200.
Ans—D. W, Clark, Dr., To Mclse., $200.
2. Bot. of D. W. Clark, on account MiUp $200.
Ans.-^MiUe., Dr , To W. D. c:lark, $200.
3. D. W. Clark, Paid cash, on accoun , $200.
-4ns.— Cash, Dr., To D. W. Clark, $200.
4. Paid D. W. Clark, ca>h on aocoiini, i$200.
Ans.—D. W. Clark, Dr , To ca>h, $200.
5. SoM W. VV. Han, on his noU', 30 day-*, Mdse,
$175. " ""• = '■■
ilns.— Bills Rt«ceivMblp, Dr., To Mdse , $i75.
6. liot. of VV VV. Hart,
on m
>oio, 60 days.
Md
;250
^ns.— Mdsv-., Dr., Po Bills Payable, $250.
7. VV VV. Han Paid hi:" note, in cash, J 175.
Ans —Cash, Dr., To Bills Rcfretvable, $175.
8. Paid my note 1o VV. VV Hart, in ca-h, 8250.
^,i5.__Bills Payable, Dr., To cash, $2^0.
9. Sold J. H. Holmes, Mdse., $450. Received in
payirieni his note for $250, and cash for ihe
balance, $200.
Ans. — Sundries Ur. To M^lse.
n • •
. ......
Bills Receivable.. $250
$450
C»?h
9 ? %
2Q0
1^
BXE1tCI8T.S IN JOVR!fALIZnrO.
I'
r I
VO. B'>t. of J. H Ffc>'m-t», V'U\. $500. Gave iir
PMVmtMii my iinir for $250, i^nd c:a^*l^ lt)r ihe
h .liiiiM-, $2.30.
Ans. — Md>e., Dr , To Siindrio*
- Hills P
Cu>h .
• • • • •
$500
t>i4
C(
iiyahie . $250
.•a>n 250
ri Exchanged the above iioies with Holmes,
$250.
Afis.—\h\\s Payable, Dr., To Bills Receivable,.
$^50. -.
12. Bot. of J. Dnnnins his» hou<»e and lot on Sprinij
Slreel,^2000 (iave in pay»nent,CH^h,$1000i
Mdso., ^500, and my note for tho balance,.
$600.
Ans.--LicVL[ Estate, Dr., To Sundries $2000
^ *^ r«5»h $1000
« Bills Payable. 600
»' Mdse 600
13. Sold my honse and lot on Spring Si reel lor
$2600. Received in paym»'ni S S. Clark's
Boif, 3 monihs, $1000, Cash $1000 and
Mdse. fi»r ih»* balance, $500. ■
itn5.-Smidri»'s Dr., To Real Kstare $2500
Bdls Receivable $1000
• . Cash 1000
Md>e 600
14. The Commercial Bank has discounted S. S.
Clark's* nt>iH lor $l()00. Di^counl, $17.60;
Ca^h received, $982.50.
^ns.— Sundries' D ., To Bills Receivable.. $1000
Ca>h $9!iJ2.50
Interest 17.60
16. Holmes & Co., New- York, consigned an in*
in-
lihe
>0
BXIR0I8K8 IN JOUBNALIZXNQ. 120
voice <»f sfood.'* to me, to be «)id on their ac-
coiiiil, $575. Paid freight and charge.<«, in
cash, 934
Ans. — Holmes & Co.'s consignment, Dr., To
Cash, $34.
16. Consifirned goods to Hdmes & Co., Ni'w'
York, lo he sold on my account, invoiced
$645. Paid freight and cartage on same, in
cash, 930.50, and gave my note for in^tur-
ance on do., $!9.35
ilfW.—Cons. to N.y, Dr., To Sund .$700 85
Mdse $645 00
Ca-h 3(v50
./ '•• ' B.IU Vny■^^ !.« .. ;9..>o
17. Sold Hohiirs & Co N goo is for ^G.'iO. lit cciv--
ed in pHVMirrii P Alniy'? nolf ior $30l>, and
.. , C;is|i ("or balaiic , ^ j5').
-4n«.— Sund. I)r , To Holinos Cotisig't $650.
Cash $350.
-' ^ Bills Receivable 300.
18. Received an acfoimt sales of «a[ood< consigned
to Molmes & Co., New- York. Met proceeds
amount to $716.
Ans, — Mol lies & Co , Dr., To Consignment lo
New-York, $716.
19. P. A I my paid his Note, with inl<^rest. Note,
$300; interest, $5.25=:$305. 25.
ilns.— Cash, Dr., To Sundries.... 305.25
" B li< Rfcrivable $300 00
" liitfri'st , .3 25
20. Holmes <fe Co., New-Yotk, liavt remii.c . .»jo
a Bill oi Exchange .on James Anderson, for
$716. . ^ .,,.. , ...., , ,,;
Ido
1XKKCI8E8 IN JOURNATJZINO.
-<4n«.— Bills Receivable, Dr., To Holmes k Co.,
S7I6. V ,
21. Bot. of J. Jonrs & Co., for Ca^sh, a Drnft on
New-Yoik for $583.50, at a pnminm <.f .06
por cent . $2.92, whicli I remitted to holmes
& Co.,.New-Y rk. .. f.
Ans.-- Smidrie!* Dr., To Cash
Holmes & Co $583 50
$586.42
liiieresi,
.92
22. Dean Tisdrtle's made a Draft on me at 30
days* sight, which I accepted, for $125.
ilyw.— Dean Tisdale, Dr., To Bills Payable, $125-
23. Paid D. Tisdale's Draft on me as follows •
in M(-rchandi!«e, $75, and gave him an Ord"
er on W. Hart for $50.
^n*.— Bills Payable Dr., To Snndries.$l25
'' Mdse $75
" VV. Hart 50
•
24. John Doc failed, and I sold the Note I held
against him, of $250, for $100. Received in
payment Ca^h.
i!n».-~Snnd. Dr. To Bills Receivable $250
Ca^h... $100 2 .-^i.
Loss and Gain 150 "'
25. Bot. a quantity of Broadcloih, in company
with B. Htirtford, $250. Paid Cash for my
half, $125. ^
^ns.— Mdso Co. A„ Dr., To Cash, $125. '^^-
26. Bot of W. W. Ely, for Cash, 2000 bbls. of
Flour for $650, which I immediately sold
for $750.
Ana, — Cash, D., To Loss and Gain, $100,
'
m
^ :
IsXERCrSM IN JOrRNALIYINO. . I3l
17. Bot. of F. Cn^f*, for Cash, 2000 Ib5». of TaMow,
for $160, which f imfnediately «okl for $140,
Ans. — Loss and Gain, Dr., To Cash, $20.
28. ConiJTirncotl Bii^iiiPss with Cash, $2000.
^n«.-Cash, Dr., To Stock, $2000.
29. Commenced Riisinos-* with Cash, $1000 ;
Mdsp., $1000, and NtHcs agHin««t sundry
persons, $500.
Jn*.— Sundries Dr., To Stock * . $2500
Cash $1000
Mdse 1000
Bills Receivable 500
SO, Commenced Business with Cash, $500, Mdse.
. $500, Notes against sundry persons, $500,
Real Estate, valued nt $1000; and owe D.
Hood, on account, $250, sundry person;* on
Notes, $500.
Ans, — Sundries Dr., To Sundries
Cash $ 500
Mdse 600
Bills Receivable 500
Heal Estate 1000
" D. Hood $ 250
" Bills Payable 500
" Stock 1750
31. Commenced Business with cash, $800
Mdse, which 1 bought as follows — of Ste-
wart & Co., on account, $1700; of Bowen
& M'N8fraee,on my Note at 60 days, $1500.
^
IMH mXKECI8£i» IS JOU&^ALZZIXa,
Ans, — Sundries Dr., To Sundries .;
Cdtih $ 800 i
Md^c 3200
Stewart &Co $1700
BiiU Payable 600'
Stuck 800
\\
iJ0O'
I''
' f; ; : 'C> ;*
"■ ^■
700
500'
800
EXAMPLES FOR PRACTICE
IN
SINGLE ENTRY.
•
?, t t K'
«
1
\
^^r
iVSU
Examples for Practice
h'/
In Single Entry.
( )..t •
To enforco the theory of the above rules the fol-
lowing exercises will be iouiid of great advan-
tage.
The student should be required not only to pro-
duce correct results but also in each case to fill
up a statement the outlines of which are given on
Page 21. , ., ,^,^
Commenced business with a capital of $10,000.
At the end of six months the following facts are
gathered from the Account Booki, : Amount of
Cash re(eived, $19000; Amount paid out, $13000.
A -B's account stands, Dr. $780; Cr 6S0; C-
D's, Dr. $*!55 ; Cr. $60; E F.'s Dr, $530 ;
Merchandise on hand, as per inveniory, $6800 5
amount owing to G-H., $200. — Required, the net
capital at closing^ and the ntt gain during bust-
n€ss»
I }
jt
Commenced business with a capital of $9000.
At the end of one yar the following facts are
gathered from the Account Books : —
Resources : Amount of Cash received $15625 ;
amount paid out $9 875 ; A-B's account ^Jtanfi9
Dr. $900; Cr. $550 ; C-D's, Dr. $1000; Cr.
$200 ; E-FV, Dr. $975 ; Cr. $424.50 ; G-H's,
136
EXAMPLES FOR ySACTIClt.
Dr. $175 ; Merjhandi:*^ on hanrl per inventory
$6350; amount from Bili-Book Receivable $500.
Liabilities : J-K*a aoconnt Dr. $600 ; Cr.
${500; L-M\s, l)r $500; Cr. $1200; N-O's, $251.
50; Cr. $051.50 From Bill-Book $100.—
Required the net capital at closing, and the net
gain during the business.
M
A. and B. commence business wiih the follow-
ing Resources : Cash $80 ) ; Notes, $5000; Mer-
cliandise, $50i)0 ; Rval Estate $4650; Balance
due on p*TS4»nal acctmnis $3764. W ih«' «nd of
12 months th^»i^ Bosources an<l Liabilities ^r«
as follows : Amoiini of C;i>h lect- ivfd $^^5000 ;
Amotint paid out, $21500; Nott's in our lav»>r,
$20D0; Merchandise per inventory $15000 ; Real
Estate, $20000; A-B*s, account siands. Dr. $2000;
Or. $800; C-D's, Dr. $1500: Cr. $201)0; E F's,
Dr. $1630; G-H's, Dr. $4300; Cr. $5600 ; I J's,
Dr. $1200 ; Cr. $750 ; K-L's. Dr $800 ; Cr. $2500 ;
MN's, Dr. $2000 ; Cr. $1500 : O Ks Dr. $100 ;
Cr. $700 ; Q-R's, Cr. $900. Required the capital
at commencing ; at closing ; and the net gain.
James-
and Francis
-, entered into
copartnership on equal terms, the former investing
$20000 and the latter $15000; but Jam»*s ,
wilbdrew during the business $5000. At the end
SXAMPI18 FOK PRAOTIOl.
137
of six month*, thp f<>]Irwing is the condition of
lliH hiir>iii»*s!» : C'ish on \mm\ $10500 Due liiem
on Pirj»<»n»l iccouni $7970.25 ; Due ihem on
Noit-s^SiaO; M«'ri.haiidi5o on hand $1600; Real
E>tai<', $4000 ; Siock«», $7000 ; They owe to per-
!i*oiis on ncoonnt $1800 ; NoIp:* onisiaiiding,
$ 1 5000. Has the business been adverse or proy
perofis9 How much? What is each pattnersnei
Cupital at closing 9
il
5
Three persons, enter into copartnership and in-
ve^l as f«»llo\vs : Thomas Hanralty pots into ihe
concirn $70(.»0; W. B. And«»rson, $6000; and R.
M. McCoriiia*', $4000. The following n*sulis are
shown at the rnd of the v^'ar : Ca>h r<*c»'ivt»d
$90500 ; Pai<l out. $79600 ; Nnt»'s received, $3000;
Kotes dispnsfd tif $25000; MtTctJiandisp, per in-
vi'Hioiy, $96 ^0 ; Store and Fixtnrrs valued at
$10000; Thomas Hanralty has withdrawn $200.
W. B. Anderson, $900 ; and R. M. McCormae,
$600. N<ite- issued, $i5500; Notes redeemed,
$1500. Personal aecronnisas follows : A-B s, Dr.
$3000; Cr. $2500; C D's, Dr. 1200; Cr. $4000;
J-Ks, Dr. $2000 ; Cr. $6420; L MV, Dr. $lb420;
N OV, Ci. $6liOO. Riqiiired ihe gain or loss during
business, and each puriner^s net capital at closing.
000'
■5 ,
First Series.
' Memoraiidnixi*
L
Jan. 1. Sold J. N. Jones 3 lbs. Black Tea, fi2J
c. ; 10 Bbls. Potatoes at $3 ; Received Cash oq
account $15 — Sold William Harrin^Jftoii on ac-
count, 8 Bbls Fiour at |9 —2. Paid Thomas
Cot»|)cr, Cash on account $60 — 3. Bought of
Francis Drake on account, 30 Hams at $(.50
each 15 c. ; 40 BbU. (»f Flour at $8 - 4. Sold W.
H Draper on acc<)unt, 5 Bbls. ol" Apples at $1 ;
8 lbs. Green Tea at 62^ c— 5. Sold Jamer* R.
Thompson 5 Bbls of Flour at $9 ; Rfceiv.d Cash
on account $25 — 6- Sold Thomas Hanr-^ity on ac-
count 25 Bbls. Apples at 90 c— 7 Bought of Ro-
bert Hendry 50 Bbls. Apples at 80 c.
r ^
June 1st. — Thomas K. Dorsey and George C«
Dean, (•ommeiire<l business vviili ihe lolK/wing
recources and liibi ities ; the resuhs to b" div.dmi
equally. Thoma^ E. Dorsey invests Cash 5500'J;
A Note fir $1500 in favor of T. K, Dorsey s^iied
by VV. King, and In.Iors^d bv F. B. Bush, dotted
May I at 90 days ; Peisnmd Accounts as follows :
William Chambers $62") ; Francis Moore $400
and John Newman $475. — George C. Dean in-
vests Cash $2500, Real Csjate $2500 ; Personal
Accounts : John O'Leary $200. Wdliam Doyle
$300. Merchandise $2500.-2. Sold William J.
W^)od on account 20 Pairs Gaiter Boots at $3 ; 75
yds. Cnlico at 12^-«.. ; 25 yds. Scotch IMaid at
15 c. — Received Cash F. Moore in full of account
$400.-3. Sold J. W. Burnham on accouni 3 <U)Z.
Elastic Hoop Skirts, 36, at $2.50 ; 1 Doz. " Em-
press do., 13, at $2 ; 3 pieces Check Marseilles,
BKAHPLEB tO& TRAOTIOX.
13d
la
IS
SO yds. al 50 c— Sold L. S. Fulton for Cash 4
cases Men's Thick Boots, 48 Pr^». at $1.25; 2
do. Double soled Boots, 24 Pr?. at $1 50.-- 4.lle-
ceived Cash from Wm. Doylv* in full C'f account
1300.— R'-ceived Cash for Pei'y Soles thi^». day $30.
— 5. Sold Daniel Chapman on Mcc^onnt 10 yds. Al-
paca at 75 c. ; 25 yds. Cai ico at 7 c. ; 30 yds. Camb-
ric, at 10 c. ; and 1 t yds. Drilling at 12 e. — Paid
Cash for petty expenses $10. — 6 Sold John R.
Penn, on account, 6 cases M<'n's Congress Gait-
ers, 96 Prs , at $1.75; 2 cases Gent's Paris Gait-
ers, 48 Prs., at $2. — Paid Cash for S ationery and
Printing $50. — Received Cash for petty sales this
day $64.-8. Sold J. J. Barnum for Cash, 25
yds. Cassimere at $1.50 ; 20 yds. Lawn at 25 c. ;
and 60 yds. Linen Gingham at 40 c. — Bought
of J. B. O'Conneil An Invoice o^ M^rcnandise
amounting to $8000; Paid Cash $4500; Note
al 3 months, $3500.-11. Received of William
Chambers Cash in full ol account $625. — Receiv-
ed for petiy sales this day $33.-12. Sold Thomas
McNamara on account 4 cases. Gaiterr* 100 Prs.,
at $2.00 ; 2 Cases Ladies " Operas'' Gaiters, 48,
at $1.50.-13. Received Cash in full account of
John O'Leary $200.— Sold John M. Holley on
account 17 pieces, Lancaster Prints 520 yds. at
9c. ; 1^ Pieces Paramata 600 yds. al 75 c. —
Received Cash per Petty Sales this day $70. —
16. Paid Ca-*h for Repairing Store $30.— -Sold
Patrick Kelly for cash 20 Pieces Frjfuch Merino
$560 yds. at 65o. ; 7 Pieces Sheeting 260 yds. at
I2ic. — 16, Received cash on -accoimt of VV. J.
Wood $73.12J.— Received for Pelty Sales this
day $50. — 17. Sold Thomas ODonnell on his
JJote at 60 da^s 8 Cases Congress Gaiters. J 50
•I
140
XXAMPLBS FOE PBACTXOl.
Pairs at $1.50 ; and 2 Cases Jenny Lind Gaiters 75
Pairs at $2.— 18^ Received cash on account of
John Newman $200. Received caj»h for Petty
Sales this day $30.-20- Paid clerk hire in ca^h $60.
Merchandise remaining unsold a» per inventory
$8688.13^
Balance Account
Resources LmbiKtieci
Merchandise per iov.
Real Estate
Cash
Bills Receivable.
Bills Payable
John Newman...
J. W. Burnham
D. Chapman
J. R. Penn
T. McNamara.
J. M. HoUey
T. E. Dorsey (^pretent worth)
G. C. Dean «•
$
8688
2500
13i
5426 87 J
1875 00
275
129
13 69
264
272
496
80
20140,50
3500 00
8320 26
8320 25
20140 50
ICXAUPLES FOR PRACTICI.
141
Mayl. Cnmmencrd Bn«inpps with Cash on
hand $'2500.— Bought ot Jolni R. Sinii'i on ac^
count !200 Bl)U. A|)|>li >« at $1 00 ; 30 Bii>h. Plums
at 80 c; 40 Bush. ('herrit'M at lb c— P.iiil rail-
ag*', &o. $->0.— .2 Recrivfd (:a>h for P. tt> Sair?,
$12 — 3* Sold Wiihatri Harrison on account, 10
Bbls. Apples at $1.30; 10 Biisli. Plutris at $1 00. —
Paid l\»r Set of books $3.00. — Kicivid Cash for
Petty Sales $25.-4. Sold James MeD«)nne||. on
accouni, M Bbls. Apples ai $1.25; 5 Bush. Ch^T-
ries al 80 c. — Paid John K. Smith Cash on ar-
couni $150. —Received Cash for Peny Snles, $31..
— 5. Bright of Pa!riek Hughes on aceonni 100
Bush. Green gages at 90 e. ; and 200 Baskets of
Peaehesat 75 o. — Rrocived lor Petiy Sales $40. —
6. Sold Thomas J O^Sullivan on aco>unt 10 Bask-
ets i.fPeaehes at 90«-. ; and 10 Bbls. Apples at $ I. -
20. — Ri'Cjrive.i of Will. Harrison Cash on account
$20 8. Paid ('ash lor Stationery $8. — Rtciived
Ca>h hirPetiy Sales this day $50 9. Sold Fran-
cis Hanraiiy, on account, 50 Ba>keis of Prachcg
at 85c ; 15 Bu>h. Greens>a.,esai $1 — Rec»'ived*<if
Thoiia-^ O'Sullivan Cj«>h in fuji of account — Re-
ceived fi.r Petty Saksihisday $rJO.— 10. St>ld C.
J. Judd on account 30 Baskets P<*aches at. 87 Jc.
— Reci'ived Cash on account of Francis Hanraity
57.50. — Received Cash on account of James
McDonnell $19.-11. Paid J. R Smith Cash on
account $104 — Sold Peter J. Murj hy on account
10 Baskets of Peaches at 87J c— Paid Patrick
Hughes Cash on account $240 00 — ^12. Bought of
James Patters* n tni account 30 Bbls. ( rab Apples
at $I.-Sf»td J. R. Ford for Cash 15 Bbls. Crab
Apples at $1 .50 ; and 20 Baskets Peaches at $i.OO.
—-Paid Store expenses $5. — Received Cash for
142
BXAMPLX8 FOB PRACriCl.
Petty Sales this day $26. ' * * *
Merchandise unsold, amounts, per Invenlory, to
$300. ...
♦ •*'?
Balance Account
Wm. Harrison
C. J. Judd,
JameR Patterson.
P. J. Murphy.
Stock (prese?tt worth).
ReRourcR<$ Liahihtiefs
$
26 25
8 75
2681
00
30
2651
268100
1st. I have this day commenced business with
the following resources and liabilities, —
Resources : Cash, $8402..^8 ; Merchandise,
$97o.54; Bills Receivable, $576.43; James M.
Davis' account $32.64, Francis W. Campbell,
do., $742.57; Bank «.f .Montreal do., $20v)0.00;
B. L Hanlon do., $!95.25; William J. McGee
do., $318 50: Consignment to Albany do. $60200.
Liabilities : William R. Wilson's account,
kJtA»lI>L£0 ro& l»RAdTlCK.
14a
$287.50; Bills Payable, $1091.30; T. H. Har-
ris* aocouiit, $576 14 ; M. R. Johnson do., $100.
25 ; William Fallon do., $733 63 ; Slock $1 1059.
29.
6th. Received per steamer Emerald^ an invoice
of g(»ods shipped by Stewari & (o, pursuant lo
my order, airiouniing per S. B. to $956. Paid
freight and charges in cash, $46.75 - 6th. Sold
B. L Hanlnn merc^handise, arn<niiitini< per S. B.
to $56 — Sold lleiiiy Simps, for ca>h, itierehand-
ise, amount iiig per S. B. lo$97.63. — 9th. Bought
of Daniel Jones, lor Cash irierchandise amounting
per S. B. to $48.96. I2th. Sold James Davis,
oti account, merchandise, as per S. B. $73.19 —
Received from F. S. Bogue, Albany, an account
sales of flour consigned him, June 25th; net
proceeds, $698, for which he has remifled me a
check on the Bank of Montreal. — 14th Sold Da-
vid Coleman, for cash, merchandise, as per S. B.
$139 64.— Sold William J. McGee, on account,
merchandise, $158.50. — Deposited in the Bank of
Montreal, $700.— 16th. Accepted Stewart & Co.'s
drafi on me, at 30 days' sight, for $956. —19th.
Received from B. L. Han Ion cash, f^ balance ac-
count. — Bot ,of J. & H. Mirick, for cash, lOObbls.
of flour, at $5 50, which I immediately sold for $6
per bbl. — 20tlL Received per steamer SwaUj
from N. Y., an invoice of broadcloih, amounting,
per invoice, to $316, consigned to me by Crom-
well, Haight & Co, to be sold on their account and
risk ; paid freight and charges in cash, $10. —
2lst. Sold Francis W. Campbell on account,
raen-handise, as per S. B. $46.- D posited cash
in the Montreal Bank, 1000.— 24th. Sold Thom-
as Colliu::j on account 33 yds. Cromwell, Haight,
144
BXAMPLis FOR FftAOTtCl.
k Co.'« broadcloth, at $4 50. Reoeivod, in pay-
fn*»n», his not^ at 60 rlays for oiu*-half, and cash
for thf* balani-e — ^28th. Bong it of J(»hn H. Ilol-
mes his house an t l«»t on B » id Street, for $2000*
Gave in payriiont Ca:*h $1,000, and n»y note f»if
the Balanr*'. — Sold Lewis & Herriek f»r Ca-^h
the remiinder of Cromwell, Hii<3;ht, & (>o.'s
broadcloth, fi)r $300 — Fruncis W. ('anipbell has
paid me cash to b dance his acconnt'. — 30th.
Made up an acconni sales of Cromwell, Haiij;ht,
& Co/tfconsi<Tnrneni ; my commission on sal at
6 per cent on $444 ; onr charges lor St rag. ..d
Aiivertisina; $25.00 ; proceed-? dne Cromwell <&
Haight $101.80 which we have remitted them in
Cash. — James M. Davis his paid me ca>*h to bal-
ance his account — St)ld VVdIiam W. Hart, on his
note at 90 days, merchandise, amounting to $216.
— Paid Isaac C. Dixon his salary for one month,
$50 — Store expenses, per Expense-book, amount
to $47 — Cash sales of merchandise this luonth,
$163.
Merchandise nnsoM, per inventory taken this
day, amounts tu $393.20. . v
'.-f ■ ',
Ih
I*
EXAMPLES FOR PRACTfCr.
Balance Account *
145
Roaourceii
Liabilities
1 •
Merchai^dise per Inr.. .;...$
Real Estate « "
Cash ; i»
893
2000
7778
864
3700
477
20
43!
42
3047
287
576
100
733
10968
15703
Bills UPrPlVAblfi.. ^A^M^MMMdM
Bills Payable. 4 • *. , * 4.
W. R. Wilson
30
50
-
T. H. Harris. ;
14
Bank of Montreal . 1 . . . < • . < .
"W. R. Johnson. ...........
25
W. R. McGee . »
W.Fulton. i.. ;..
Stock (present worth) •• • • • .
*
63
60
■ '
15703
42
* See ertata pages 143, 141, double entry.
Second
\
•Tan. let* Commenced business with a Cash
Capital of $10,000—2. Bought of William Dunn
for Cash 150 Bbls. Flour at $8.00.— Sold R. B,
Spencer for Cash 10 Bbls. Flour at 9.50. — 4
Bought of Francis Coleman on our note at 30 days,
50 bu. wheat at 50c.— Sold William King on ac-
count 5 Bbls. Flour at $9.50.— 6. I^ough^ of James
Scott for Cash 10 pieces Calico at $5 ; 2 peices
Casimere at $8. — 8- Paid Cash for Set of Books
for use of Store, $20. — ^9- Sold Samuel Jones on
his note at 30 days. 14 Bbls. Flour at $9.35.-10
Sold William Casey on account 30 Bu. Wheat
at 60 c. ; 30 Bbls* Flour at $9.30.-11. Sold F, J.
i
.^^
140
EXAMPLES FOR PRACTICE.
McKeenan lor Cash 21 Bbls. Flour al $9.25 ; 5
pieces Calico at $6. — 13- Bought of Andrew Gor-
man 16 Cases Shoes, 200 Pairs at $2.00. Paid him
Cash $200, and balance on account. — ^17. Sold
Thomas Jemison on account, 20 pairs shoes at
$2.50. — ^19. Sold James Swift onaccount 40BbIs.
of Flour at $9.50--— .27. Bought of John Gary on
account 50 Piec^a Merrimac Prints at $5. —
30 Sold Michael Sullivan for Cash, 30 Pairs
Shoes at $2.50.— Received -Gash on account of
William Casey $100.-31. Paid Store rent in
Cash $80.
j^ Merchandise on hand, $921.00. jojifi .7/
<y6r^
t-^i' '
Balance Account.
Resoarccs. Liabilities.
n
^ -
Merchandise per inv
Cash. «...
J. Swift....,
Bills Payable
A . Gorman
W.King
Bills Bec'd .........
' '. John Carey .........
Wm^ Casey « . . . . . . .
, Thos. Jamison
Stock ( present worth)
• » (• ' ■
. . . . •
921
8928
380
47
15i9
104.
50
10560
25
50
50
25
100^5'
10560
25
25
01— x£.0^ m ifioi'i .^Id^jp^i .>viib Oi; ^» ^lon >tiii
Jol) 1' Commenced business with the Re-
^ -
25
1
200
1
1
M.^J- -ti-
]
, f t * J <!
')
250
[-
')n9('
EXAMPLES FOR PRACTICE.
14'
sources and Liabilities shown in Balance arconnt
o< la>t Set. — Sold John Brown on account 20 Bn.
Wheat at 60 c. — 2- Bought of Michael Harrington
for Cash 200 Bbls. Flour at $8.50.-3. Received
of William King Cash on account $47.50. — 4-
Sold Thomas O'Donohue for Cash 5 Pieces Cali-
co at $5 ; 2 Pieces Cassimere at $8. — 6- Paid our
note in favor of F. Coleman (given him Jan. 4th.)
in Cash $25. — 6. Sold Frank Harper on his note
at 30 days 20 Bbis. Flour at $9.50.- Sold M<^)re
& Fitzpairick on account 100 Pairs Shoes at
$2.50 ; 9 Bbls. Flour at $9.50.- 9. Accepted
John Carey's draft on us at 10 days sight favor of
James Rooney, $250. ^-Received of James Swift
Ca»hon account $380.^ — 11. Paid Cash lor s-undry
expenses $10. — 14. Paid Andrew Goiman Cash
on account $200. — 16* Sold Bernard Buchanan,
on his note at 30 days, 30 Bbls. Flour at $9.50.
— 18. Received from the executors of my deceased
father's estate CasTi $3000.--20. Paid our ac-
ceptance in Cash, favor of John Cany $250.
22. Sold Henry Johnson 20 Bbls. Flour at $9.50 ;
25 Pairs shoes at $2.50. Received in Payment
bis note at 30 days. — 25. Sold our sight draft on
John Brown to balance his account, for which we
received Cash— 27- Paid Store rent in Cash $100.
—28 Paid. Store rent in cash $100.-29. Sold
our sight draft on Jemison to balance his account,
for which received Cash. — Sold Francis McGuire
for Cash 100 Bbls. Flour at $9.50. ~i
Merchandise per inventory $818.50.a^_l!i
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Marcll 1. — Commenced business with the R««ource^
and Liabilities as shown in Baliince account of last set^
— 2« Bought. of George Deshler on account 15 Bags of
Coffee SdoO lbs. at 9c. ; 10 Bags of Rice 2000 lbs. at 5c.
r-3. Sold Jsmes Bonner for Cash 15 Bbls. Flour at $10 ;
3 Bags of Coffee 600 lbs. at lOc— 4. Received fron^
John Martin, New- York, to be sold on his account and
risk 15 ithds. of Sugar, 15000 lbs. invoiced at 8c. Paid
freight on same in Cash $50. — 5* Sold Thomas Kellr
t>n bis note at 7 dajs 25 Pairs of shoes at $2.50. — 'f.
Shipped B. T. Stephenson, Boston, to be sold on our ac-
count and ri»k 10 Bags of Coffee, 1000 lbs. at lOc, 5
Bags of Rice 500 lbs. at 6c. ; Paid Cash for Insurance oi^
same $15. — IQ. Bought of Michael Flood on our note
at 86 days 300 Bbls. Flour at $9 ; and 2000 Bu. Wheat
at 60 c— 11. Sold Frank Cunard for Cash lOHhds. of
Sugar (Martin's ConsignmeVkt) 10,000 lbs. at lie— 12l
Received Cash in full for Thomas Kelly's note of the 5th.
ue this day. — 14. Sold Francis Harrington on bis note at
days 2 Bags of Coffee 200 lbs. at 10c. ; 4 Bags of Rice,
400 lbs. at 6c.— 15. Sold John Bosworlh for Cash 5 Hhds.
of Sbgar (Martin's Consignment; 5000 lbs. at lie— 2(h
Received advice ^om B.^ T. 3tcpheoson, Boston, of the
Sales of our Coffee and Rice shipped him on the 7th. inst.
Our net proceeds of the same amount to $100, which h^
has remitted us in XDash. — 21. Closed Martin's Consign-
ment and rendered him an Account Sales of the same.
Our charges for Storage and Advertising 820 ; Commission
at 2 per cent on $1650, $33.00. J. Martin's net proceeds
$1547.00, which we remitted him in Cash.— 24. Receiv-
ed Ca«h in full for F. Harrington's note of the 14th. in»t.
due this day. — 27. Paid .Clerk hire and rent in Cash
$150.-30. Paid our note of the, 10 inst. at 80 days fav-
or of Michael Flodd in Cash $3900 lesb discount for 66
days $38.61.
luTentoif of Merchandise unsold $4863.
t
Ut-
.y">'T •>. fi'f tiiYi ^-.TJIMAXJf
r
o
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:0I* jRih^n .^MclCi ".._.".; ^,. ; "
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'^ .tiOl Jfi .*<li 000
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151
ST
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, /m/
EXAMPLES FOR PRACTICE.
151
VH\ >^f.l
'-i .Vik
ApriL I. Commenced business with the
following Besonroes : Cash on hand |2500 ;
Merchandise per Inventory $5214.36. Notes on
hand $2300 ; William Slacker's account $850.
Liabilities : Smith & Sons* account $475.
50 ; King & McMahon^s account $287.50.—
4. Bought of Robert Johnson on my n6te at 90
days, Merchandise per Invoice-Book, amotmt-
ing to $541.30.- 3* Sold P. J. Buckley on ac-
count Merchandise as per S. B. amounting to
$239.18—6. Bought of Thomas Hanratty on ray
note at 90 days. Merchandise as per I.-B. amount-
ing to $634 96.-8. Bought of James Mc Wil-
liams on account, an Invoice of Herchandise
aniounting to $213.14.-9. Sold Michael DHs-
coll for cash Merdiandise as per S. B. amounting
to $22 1.88. —Solid P. J. Buckley on account Mer-
chandise as per S. B. amounting to $154.46.
—10' D^sited Cash in Montreal Bank $2000.
~^11* Spid Charles Mooney on account Merchan-
dise as per S. B. $602.82.— Sold Thomas Mc-
Namara for Cash 2 pieces Calico 9 1 yds. at 94c.
— -13. Sold Henry firophy on account Merchan-
dise as per S. B $167.50-^14. Sold Chs. Anthon
on account Merchandise as per S. B. $24.75.->—
15. Bought of J, J, Jones 200 Bbls. Superfine
Flour at $10. Gave in paymieUt a Check on Mont-
real Bknk for $1000 and my note at 30 day^ for
balance. — 16. Sold J. F. O'Leary on his note at
90 days, Merchandise per S. B. $201.43.^17. Re-
^ ceived per Steamer Champion from T«Yrbnto,ian III-
voiice of Cotton consigned to m* by James Mc Wil-
liams io be sold on his i^ccount a)id risk, amount-
ik
SXAMPtSS FOB PRAOTICI.
ing per Invoice to $170.80. Paid Cash for Freight
Cartage, &c. $18.75. — 19. Shipped per Steamer
Magnet and consigned to FranK Smith, TorQnto,
to be sold on my account and risk 200 Bbls. of Su-
perfine FloUr at $10. l^aid Caeh for Freight and
Cartage $205.25.-20. Sold M. Drisipoll for Cash
Merchandise per S. B. $164.50^ — 21. Spld Charles
Mooney on account 1 Bale Qotton 450 yds. At
15c. ; 10 pieces Cassim^re 600 yds. at 62ic.-^
22« Received for Petty O^sh Sales this month
$896.58.-23. Accepted Smith & Co*s Draft on
me iu favor of Francis Doyle .at 10 days sight for
$475;5,0.-^2&. Deposited Cash ip Banlc of Mont-
real $500.— 26. Paid.Ca^h for Store Expenses
$l24i — 27* Bought of Charles Cunningham on ac-
count, an invoioe oC Merchandise amounting to
$406.-28. Sold Henry Br^phy on account
Merchandise fts pec S, B.. $352^75. — ^^old John
O'Leary on account ]!i(erchandise as per S. B.
$227. — Sold P. J. Buckley on accp.u'nt, i piece
Broad cloth 25 yds. at $4 ; 2 pieces dassimere 56
yds. at $2.-* 28. Sold Charles Mooney on ac-
count 4 Bales. J. McWilliam's Cotton 1200 yds.
at 3^c. — Received from Thomas tirant to be sold
on joint account each one halt 5000 lbs Wool at
Soc. ; uiy comniis^ion 5 per cent on sales ; paid
Cartage &c. $2Q— Sold Henry Brophy on account
the balance of Mc William's Cotton at $175.— 3d.
Made out an account sales of J. McWilliam's con-
signment : Our charge for Storage and Advertis-
ing $15.75 ; our commission at 5 percent on $2 17;
net proceeds $171.65.— Sold Thomas Patterson for
Cash the 5000 lbs. Wool (Mdse. Co. A.) at 37^ c.
— ^Closed Sales in company with Thomas Grant
^nd rendered him an account of the fame ^. puV
i:i^AMPLE3 FOR PRACTICE.
c])arges on Storage and Advertising $25 ; our com-
mission at 5 per cent on $1875 $93.75 ; T. Granfs
half Invoice $625; his half net gain $243.12^;
our half net gain $243.12}.
Balance of Merchandiife unsqld as per i^
veutory $3730.87.
Balanoe Account. '
' Resourcer. idabilititv.
'>;•.'
r.
If
y
^4erchaDdise per inv
MoMahoD & King
Cash VV-T--
Bills Receivable .,.,,.„
Bills Payable :
Wm. Blacker
P. J. Buckley.....
J. McWilliams
G. CuDningham
T. Grant ,
Montreal Bank ,
C. Mooney ...^....
U. Brophy ,.,, .',
C. Antnon...... ^ .^.
Shipment to Tqronto ,...!..
J. O'Leary * ,,,,
Stock ( preient worth) . . . . ,
$
3730
2875
2501
850
605
1500
1087
"695
24
2205
"227
87
s
50
43
64
32
25
t5
25
16303 01
2P: 50
2651
384
496
1493
76
79
00
'H'i
10989 83}
7l
16303
■r X
{■ s ^^ tm '- ji.f ,
a
V4 Ml t>fM«S •
iivii.Vjti^i fit b&vi&tj.6wi
M&y 2* Commenced business with the resourc*
es' and liabilities as shown in balance account
of last se( : Paid in Cash Smith & Son's draft
oh me at 10 days sight accepted April 23rd^i
$475.50.-8. Sold Francis McPherson on his
lipte A\ 4 months. Merchandise &8 ppr S. B.
154
EXAMPLES FOR PRACTICE.
amounting to $427.-4. Received of Charles
Mooney Cash on account $500 — 5. Sold Michael
DriscoU for Cash Merchandise per S. B. amount-
ing to $250.— S.Bought of P. J. Lynch & Co.
100 Barrels Flour at $9.50 ; gave in Payment a
Draft on William Blacker for $850 ; and Ca».h
for the balance $100. — 9. Sold Francis Rourke
for Cash Merchandise amonting to $22.65. —
10. Received from P.J. Buckley Cash on account
$100.— Sold W. J. Stratton on account 5 Bbls. of
Flour at $11. — 11. Paid Charles Cunningham's
draft on me at sight $496. — 13. Received from
Frank Smith Toronto an account Sales of the
Flour consigned him on April 19lh. Net Pro-
ceeds $2775.00. For which he has remitted a
check on the Bank of Montreal. ^Sold Daniel
Fitzgerald for Cash Merchandise as per S. B.
$103.50.-14. Sold John O'Leary on account 1
Piece Carpeting 87 yds. at $1 ; 6 yds. Oil Cloth
at 75c. — IS.Sold George McKeown for Cash 95
Bbls. Flour at $10.14.— 16. Sold Charles Mooney
on account 1 Piece Carpeting 96 yds. at $1 ; 1
Piece do. 79 yds at 75c.— Paid in Cash my note
issued April 4th. favor of R. Johnson at 3 months,
face of note $541.30 Discount off $6.95.— 1?. Paid
C. Anthon Cash on account $25. — Bought of J. J.
Jones for Cash 125 Bbls. Fiour at $10, which I
have sold to Dawson &, Major, N.-Y. at $11.
Received in Payment Merchandise per Invoice-
Book amounting to $1000; and their Dr^ft on
George Smith at 10 days, $375.-19. Sold John
A. Barton on bis note at 4 months. Merchandise
per S. B. $480.-^20. Bought of P. J. Buckley a
House and Lot on St. Lawrence Street for $1600 ;
gave in paynfient, Cash $200 ; F. McPherson's
EXAMPLES FOR PRACTICE.
155
V
Note Received on 2nd. inst, |427, Check on
Bank of Montreal $500, and Balance on account.
— Received from W. H. Stratton Cash to balance
account $55. — 24:* Henry Brophy has accepted my
Draft on him at 10 days sight $695*25.— Bank
of Montreal has Discounted the Note received
from John A. Barton on the 19th Inst, at 4 months
Face of Note $480.Di8Count off, $9.44.-^25. Sold
H* Langton, the House and Lot on St. Lawrence
Street for $2000 ; Received in Payment Cash,
$1000 and an Invoice of Merchandise amount-
ing to $1000.- Bought at Auction for Cash a
quantity of Merchandise for $250 and immedi-
ately sold it for $300.--26. Shipped per Passport
and consigned to Hughes & Co., Hamilton 50
Bbls. of S. F. Flour, Bought of Bernard Mason
Ion my note for 30 days at $1 1 ; Paid Freight and
Cartage in Cash $52— 27- Henry Brophy has paid
my draft on him $695.25. — 28- Bought of James
McWiiliams on account an Invoice of Merchand-
ise $173.50.-29. Cash Sales this month $3260.62.
— Paid Store Expenses in Cash $426.25.— De-
Iposited Cash in Bank of Montreal $ tOOO. — Paid
Clerk hire $50.
Balance of Merchandise unsold as per Invent-
jory $2850.00. ym^-^fsiw " -^
a
Si JXOIO
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r'
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la
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it
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154
16c
*.«•»-*-.... ,
EXAMPLES FOR PltACtlCt.
' Balance Account.
R«8oarceii.
Uabiiilieil.
iu
i-JU
Merchandise per iny. ...
Cash
Bills Rec'd
Bills Payable
P.J.Buckley .;.
McMahon & King
J. MoWilliam^.....
Montreal Bank....;
C. Mooney a
James Grant i
C. Antbon
J. 0*Leary
Shipment to Hamiltoh.
Stock ...i.. ,.....;*....;;.
$
2850
00
8512
28
2876
43
3154
32
64
287
558
2000
00
742
57
14&3
4^
7S
318
50
602
13460
17984
17
17984:
96
50
29
12J
29J
^K>(
EtRRA.xJx^
••v. \ i
P»ge 11,
A.
t<
29,
5
tt
29,
12
tt
26,
23
l(
45,
10
((
62,
12
tt
98,
31
tt
138
, 9
tt
105,
22
tt
109,
10
tt
140,
4
tt
140,
6
tt
140,
7
tt
143,
9
tt
143,
last
ni
144,
14
to Q. 14, From the bill br invoice riceived*
line instead of owned read owed.
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" and
« deUt
" they
" therefore
tt
tt
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omit a
" each 15c.
'' instead of inmost
" " " bound
" " « $60
" « « $8688.13i «
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or,
debt,
it, - '' '
there/dr.
rrlttsL
bond,
$61.23.
$8888.1.3^.
((
((
" insert words on account after Hanlon.
line omit words on account,
line instead of $101 read $386.
sen.
Liabiiiiieii.
00
28
43
3154
96
64
287
50
558
29
30
57
7S
14&3
12J
50
13460
29J
17
179841
17
'tf^n■
mice received*
7wed,
7r.
debt
t.
herefdr.
^nd.
$«1.25.
$8888.l3j.
'ter Hanlon.
,»*»*'''
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