For Common Schools, Business Colleges, and the Counting House. PRACTICAL BOOK-KEEPING, CONTAINING THOROUGH INSTRUCTION IN 0lournaliting, 4osting, anD 0losing, TOGETHER WITH PRACTICAL FORMS FOR WHOLESALING OR JOBBING, RETAILING, AND COMMISSION BY DOUBLE ENTRY: ALSO, REMARKS UPON NEGOTIABLE PAPER, FORMS FOR BUSINESS PAPER, ETC. By W. A. DREW, Proprietcr cf Drew's Bavs-zcess College, Chicago. CHICAGO: GEO. SHERWOOD & CO. Entered, according to the Act of Congress, in the year x873, by GEO. SHERWOOD & CO., in the Office of the Librarian of Congress, at Washington. T —------------------ — ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PREFACE. In presenting this work to the public, our only apology is the public, demand for a work on Double Entry Book-Keeping, so simplified that it can be taught by any teacher competent to teach a common school. There is no good reason why Book-Keeping should not be taught in our common schools, as one of the most important and useful branches of education. As a mathematical drill for the student, it is equal to Algebra or Geometry, and as for its utility, no education is complete without it. All the works on Book-Keeping heretofore published, fail to impart to the student a knowledge of Journalizing. ~ Journalizingis the Alphabet of Accounts, and must be thoroughly learned before satisfactory progress can be made in this science. There is an increasing demand on the part of the public, to have Double Entry Book-Keeping taught as one of the principal branches in our common schools. The attempts made heretofore have not been rewarded with satisfactory results, owing to the want of a text book that would teach the first principles. The author has made this work as progressive as possible, and the language used in giving rules for Journalizing, Posting, and Closing, is as plain and simple as the English language will permit. The practical forms for Wholesaling and Retailing are given, and it is believed that when the student understands those, he could adopt others, as occasion requires. Single Entry is not introduced, for the reason that if the student understands Double Entry, he knows all about Single Entry. He 8 Preface. Las something deeper, viz: the principles of Debit and Credit that underlie the whole science of Accounts. This work will be found adapted to common schools, business colleges, and the counting house; and if the author, after twenty years' labor, has succeeded in issuing a work the public demands, he feels confident that his labor will be appreciated. He is willing and anxious to rest its merits with the public and trust to its good judgment for the introduction and perusal of this work. W. A. DREW. CONTENTS. PAGE. INTRODUCTION ----------—........ —-------------------- I I ABBREVIATIONS AND CHARACTERS --------------------------- I15 SET I, NO. I, Rules and Exercises for Journalizing ---------- --— i —----- 16 " " " 2, " " Promissory Notes. 20..." 3,' Sundry Items-....... 23..s i4," Drafts -------------------------- 26.... 5,'' " Personal Accounts -. —------------ 3C.' " 6, " " Interest and Discount Accounts —-- -32' " "( 7, of' Premium, Expense, and Profit and Loss Accounts ------- -------- 36.....8, " " Shipment Accounts ------- --------- 38. Hi " (( 9, " Resources and Liabilities - --------- 41 QUESTIONS FOR REVIEW__ --— ___-__ 44 NEGOTIABLE PAPER_ ------- -- - ---------------------—. 49 DAY BOOK FOR SET 2, NO. I.-............. -..... 52 JOURNAL FOR SET 2, NO. I 54 POSTING TO LEDGER --------—. ——. —--------------------------—.. 56 FIRST TRIAL BALANCE —----- ----------------------- 57 CLOSING THE LEDGER ----------------------------- ------------—. 58 LEDGER INDEX ---------------------------------- 6I " FOR SET.2, NO. I -.- 63 BALANCE SHEET;rFOR SET 2, NO. I.. —---------------—. 66 EXPLANATION OF THE BALANCE SHEET_' —- - ------------ - 67 REVIEW OF THE LEDGER ------ -------------------------- ----- 67 DAY BOOK, SET 2, NO. 2 ------------- ------—. —---------------- 69...... 2, " 3 --------------------- -.-.-.-. —--------- 72 AUXILIARY BOOKS..- ------------------------------------------- 75 MEMORANDA AND INSTRUCTIONS FOR WRITING UP THE AU'XILIARY BOOKS 75 PRACTICAL FORMS FOR WHOLESALING OR JOBBING -. - -76 HISTORICAL JOURNAL__ ---------------------------------—. ---------- 80 CASH BOOK- ----—. 82 BILL ----- - --------------------------- 82 INVOICE" - - ---- -------- 84 SALES i - ------------------ ---------------- ------------------- 85 PAGE. LEDGER FOR SET 3, NO. ----- ------------------— 86 SET 4, NO. I, CONTINUATION OF No. 3, re-opening the Books and admitting a Partner ----------- - -----—. —---------------— 0 —------- 9g MEMORANDA FOR SET 4, NO. I. Partnership ----------- 92 BALANCE SHEET FOR SET 4, No. I ----------------- ------------- 98' PRACTICAL FORMS FOR RETAILING —------- 99 MEMORANDA FOR JUNE, Retailing Dry Goods -- -------- ----------- Ioo C" " JULY, " Gents' Furnishing Goods - Partnership_ Io5.. " AUGUST," Dry Goods -------------------------- Io8 COMMISSION --------------------------------- ------------------- 115 COMMISSION SALES BOOK AND VOUCHERS -- ----. 122, 123 MEMORANDA FOR MANUFACTURING —- 124 SALES BOOK - -1 -......... I45 TIME't " -". -... 146 INVOICES —-------------- 121, 147 STATEMENTS ---------------------------------------------- 151 BUSINESS LETTERS -------- ------- --- ------- 152 FORMS FOR BUSINESS PAPER-. —. —- ----- ---------------------- I57 I N TRO D U CT I No Before the student enters upon the study of Book-Keeping, he should investigate the following explanations, and should become familiar with the following questions and answers, that he may have a better understanding of the work to be accomplished Q. What is Book-Keeping? A. Book-Keeping is the science of Accounts. Q. What does Book-Keeping teach? A. It teaches the most practical forms for keeping and preserving a history of business transactions. Q. How many distinct methods are there for keeping books? A. Two. Single and Double Entry. Q. How many practical forms are there? A. Almost every kind of business has a form adapted to that peculiar business, although the principles of Debit and Credit never vary. Q. What should every accountant do? A. He should give a full and correct history of his business transactions, and select a form that is practical for his business. Q. How is the accountant to know what form to select? A. His -own judgment, or the judgment of others having more experience, should be consulted. Q. Define Single and Double Entry? A. In Single Entry a debit or credit is made for every business transaction. In Double Entry, every business transaction produces both a debit and credit of equal amount, in the Journal and Ledger. Q. What other advantages has Double Entry over Single? A. In Single Entry we have no proof of the work, and as there are no Expense or Profit and Loss Accounts, we have no correct record of the gains and losses in business. In this work the student is introduced to Double Entry at first, and when he has a knowledge of this method, he will understand Single F'ntrvy. Q. How many principal books are used in Single Entry? A. Two. Day Book and Ledger. Q. How many principal books are kept in Double Entry? A. Three. Day Book, Journal, and Ledger. When a history is given in the Journal, only two are used, Journal and Ledger. Q. What does the Day Book by Double Entry show? A. A history of the business transactions not entered in the Cash Book. Q. What does the Journal show, or express? A. It expresses the debit and credit of the Day Book entries under Ledger titles. Q. What is the Ledger? A. It is the reservoir of accounts. Q. Into what book do accounts flow, that are recorded in the Day Book? A4. Into the Journal, and those that have cash as part payment, are carried to the Cash Book. Q. Into what book do entries flow from the Journal? A. Into the Ledger. Q. What is the Cash Book used for? A. To keep a correct history of the cash received and paid out. Q. Into what book do the entries flow from the Cash Book? A Into the Ledger. Iztroductzoi.'3 Q, What are the Auxiliary Books? A. The various helping books, among which are the Cash Book, Invoice Book, Sales Book, Check Book, Order Book, Bank Pass Book, etc., the kind and number depending upon the nature of the business. ABBREVIATIONS AND CHARACTERS. Acct. or a-c -.................. Account. Am't. Amount. Bal..-.. - Balance. B. B. Bill Book. bbls.. Barrels. Bills Pay....................... -Bills payable. " Rec.................. -' receivable. Bot. Bought. bu. Bushels. - -- - ------------- Cents. Cap............................ Capital. C. B. Cash Book. Co. -Company. Cr. Credit. C. S. B. Commission Sales Book, D. B........................... Day Book. Dr — Debit. ds. Days. E. O. E.. Errors and omissions excepted, gal............. Gallons. hhd. Hogshead. I. B. _ Invoice Book. Inst.- - - Instant. Inv't. Inventory. lbs. -Pounds. L. F. -Ledger Folio. Mdse..Merchandise. Paymt. Payment. -%_,___,,, ___,,,,,_,___,,_____ -Per. cent. Prem. -- - ----- Premium. S. B.__ Sales Book. Ship't. Shipment. Sunds. Sundries. yds. Yards. ---------------------------- Check mark. -$.............................. Dollars. i6 RRules and Exercises RULES AND EXERCISES IN JOURNALIZING. RULE I.-Debit what you receive, what you buy, what comes into your possession, or what costs you value. RULE 2.-Credit what you sell, what you pay out, what goes out of your possession, or what produces you value. The followingbusiness transactions, representing Day Book entries, will furnish exercises for the student in journalizing. No Ledger will be introduced till the student becomes proficient in journalizing. It is from this exercise the student gets a knowledge of the principles of debit and credit. Journalizing is the key to Book-keeping, and should be thoroughly understood before posting to the Ledger. SET I, No. I. Chicago, Jan. i, I872. 1 Bot. of Geo. Jones, 5 bbls. flour, at $io 50 1 oo Paid him cash in full i 5~ oo 00 The following entry will give the student an idea of the form:I st. Mdse 50 00o To Cash 50 00 The date should be made on the line between the entries, the same as the Day Book entries. The student should be careful and carry out the amount of the debit entries in the debit column and the credit entries in the credit column. This rule is not observed in the exercise for journalizing, as no debits or credits are expressed. In the Journal, the first entry and first column is the debit entry and Dr. column, and the second entry and second column the credit entry and Cr. column. The student can refer to the Journal in this work for the form. Z n S7ournahizizg. I7 CHICAGO, JAN. 2, 1872. Sold Wm. Brown, 4 bbls flour, at $I T 44 oo Recd. in paymt. cash. 44 00oo 3. Bot. of John Smith, 7 bbls. flour, at $io $70 5 bbls. pork, " $15 $75 r45 00 Paid him cash in full 145 00oo 4Bot. of R. Good, io bbls. beef, at $I2 $I 20 50 doz. brooms," 2 I00 20 bbls. pork " I5 300 i 520 00 Paid him cash 520 oo Bot. of Geo. Davis, House and lot on West Madison Street, for 5000 0 Paid him cash 5000 00 The Journal entry will be, Real Estate 5000 To Cash 0 5000 0 We debit real estate when we buy it, give it credit when we sell it, and the difference will! show our gain or loss on real estate. 6. Sold Wm. Lyman, A vacant lot on West Madison Street for 2800 oo Recd. in paymt., 200 bbls. flour, at $Io $2000 40 bbls. pork, " 20 800 2800 0oo T8 Rules and Exercises CHICAGO, JAN. 6, 1872. Bot. of J. Russell, A vacant lot on West Harrison St. 250 00 Paid him 20 bbls. pork, at $12.50 250 00 Sold Geo. G. Jones, 5 o bbls. pork, at $25 $i250 I00 " flour," I2.50 1250 2500 00 Recd. in paymt., 25 shares C. B. and Q. R. R. Stock, at $oo 00 2500 00 C. B. and Q. R. R. Stock 2500 00oo To Mdse. 2500 00 I 0. Bot. of H. Johnson, 4 shares Commercial Bank Stock, at $Ioo 400 4o00 Paid him 40 bbls. flour, at $o 400 00oo I5. Sold John Goss, 2 shares Com'l Bank Stock, at $ioo 200 00 Rec'd. cash 200 00 S. Sold W. A. Drew, 25 bbls. flour, at $I2 300 oo00 Recd. in paymt., 3 shares N. Y. Cen. R. R. Stock, at $oo 00 300 00 22. Bot. of Geo. Davis, 00oo bu. wheat, at $I.25 125 00 Paid him cash 125 00 iz 701 rza,/izUi7g. 19 CHICAGO, JAN. 23, I872. Sold John Smith, io shares C. B. and Q. R R. Stock, at $oo00 1000 00 Reed. in paymt. cash I000 o00 24. Sold R. Good, 20 doz. brooms, at $2.50 50 00oo Recd. in paymt. cash 50 00oo 25. Bot. of James Williams, 5 shares Ist Nat. Bank Stock at $I oo 500 oo Paid him 5 shares C. B. and Q. R. R. Stock, at $Ioo 500 00 26. Sold James Boyd, 5 shares Nat. Bank Stock, at $Ioo 500 00 Rec d. in paymt. cash 500 00 27. Bot. of Geo. Jones, for cash, 400 bu. corn. at 25c. I00 00 0O. Sold Samuel Tho.mpson, 400 bu. corn, at 30c. 120 00 Rec d. in paymt., I2 bbls. flour, at $Io 120 00 20 Rul'es and Exercises SET I, NO. 2. PROMISSORY NOTES. Q. What is a promissory note? A. A promissory note is a written or printed promise to pay a certain sum of money at a specified time, or on demand. Q. Who is the maker of a promissory note? A. The person who signs it or malkes the promise. Q. Who is the payee? A. The payee is the person to whons the note is made payable. FORM FOR A PROMISSORY NOTE. $500. Chicago, April 24th, 1873. Sixty days after date I promise to pay John Smith or order five hundred dollars, with interest at ten per cent. per annunl. Value received. GEO. JONES. Q. Who is the maker of the above promissory note? Q. Who is the payee? Q. When I speak of John Smith's note, do I refer to John Smith's property or John Smith's promise to pay a certain sum of money? A. John Smith's promise. In speaking of these notes we should always describe them as the maker's note, not a note on the maker or received from the maker. Q.- When you receive another person's note, what do you debit? A. Debit Bills Receivable. Q. When you sell or dispose of another person's note, what do you credit? A. I credit Bills Rec. Q. When you give out or issue your note what do you credit? A. I credit Bills Payable. Q. When you receive your note, or when it comes back into your possession, what do you debit? A. I debit Bills Payable. After having committed the foregoing rules to memory, the student should journalize the following exercises in No. 2. ut 7oiu'~~aWiZug. 21 SET I, NO. 2, CHICAGO, FEBRUARY I, I872. Bot. of Wm. Lyman, io bbls. flour, at $Io ioo 00 Paid him my note for Ioo 00 Mdse. Ibo 00oo To Bills Pay. I00 00 2. Sold Geo. Webb, 5 -bbls. flour, at $I2 6o 00 Rec d. in paymt. his note for 60 oo Geo. Davis paid me cash for his note for I50 00 150 00 In the above entry the student must debit Cash and credit Bills Receivable, bearing in mind that every debit must have a credit, which must be expressed in the Journal. Bot. of Win. Watson, on my note 25 bbls. flour, at $io 250 00 50 " beef, " $12 600oo 00 850 00 4. Paid A. H. Hull, Cash for my note 475 00 Bot. of R. H. Hamlin, for cash, W. W. Wright's note, for 785 00 22 Rules and Exercises CHICAGO, FEBRUARY 6, 1872. Sold C. P. Smith & Co., W. W. Wright's note for 785 oo Recd. in paymt., 70 bbls. flour, at $Io $700 I00 bu. rye, " 85. 85 785 00 Bot. of R. Davis, House and lot on West Harrison Street, for 3000 00 Paid him John Smith's note for oo2000 00 R. Good's note I000 0,0 Real'Estate 3000 00 To Bills Rec 3000 00 9Paid Charles Jones cash for my note, for 8oo oo I 0. Sold Wm. Fox, House and lot on West Ilarrison I Street, for 3500 o Recd. in paymt., His note for 3000 00 A. W. Anthony's note for balance.500 00 I5. Exchanged notes with Hart, Jones & I Co., receiving their note in exchange for mine, amounting to 500 oo00 _6. Paid cash for my note, Wm. Watson's favor 850 oo iv 7ournalvzzig. 23 CHICAGO, FEBRUARY 17, I872. Sold Scott & Co., Ioo bu. wheat, at $I.oo I00 00 Recd. in paymt. my note, Wm Lyman's favor 100 00 20. Bot. of D. Baldwin, 5 shares C. B. & Q. R. R. Stock, at $I 00oo 500 00 Paid him my note at Io ds. for 300 oo00 My note at 3o ds. for 200 00 22. Sold Geo. West, 3 shares C. B. & Q. R. R. Stock, at $I o 330 00 Recd. in paymt. cash 330 00 23. Bot. of Wm. Wells, Samuel Boyd's note for 220 00 Paid him 2 shares C. B. & Q. R. R. Stock, at $I o i 220 00 25. Recd. of Hart, Jones & Co., My note in exchange for theirs for I500 00 I500 00 SET I, NO. 3. RULES FOR JOURNALIZING SUNDRY ITEMS. The word sundries, as applied to book-keeping, has reference to different species of property. If I buy corn and oats I have bought sundry items, but not sundry species of property, as corn and oats would be merchandise; but if I 24 Rides aid Exercises buy wheat and John Smith's note, I have bought sundry species of property, and should debit Mdse. and Bills Receivable. The same rule will apply to the credits. ENTRIES FOR PRACTICE. CHICAGO, MARCH I, 1872. Sold Wm. Watson, Io bbls. pork, at $Io 1oo 00 Recd. in payont., cash 50 00 His note for 50 00 The Journal entry should be Sunds. To Mdse. The following is the form: — Sunds. To Mdse. 1I00 00 Cash 50 oo Bills Rec. 50 oo 2. Sold John Goss, 25 bbls. flour, at $io0 $250 20 4 pork, " 20 400 65 o 00 Recd. in paymt., cash 300 00 His note for balance 350 00 3Bot. of S. C. Goodrich, i5 bbls. flour, at $10 150 00 Paid him my note for 00o 00oo Cash 50 00 41. Sold Geo. Parker, 500 bu. wheat, at $I.1o 550 00 Recd. in paymt., cash 300 00 Geo. Davis' note 200 00 20 bbls. apples, at $2.50 50 00 When more than one species of property is received and more than one disposed of in the same entry, the Journal entry should be headed "Sunds. To Sunds." On the same line first write the debit Sunds. and then drop one line and in the credit column write the credit Sunds. iAG?ournafizzig.7 25 CHICAGO, MARCH 5,: 872. Bot. of Chas. Jones, 500 bu. corn, at 40o. $200 8oo " wheat, at $I.oo 800oo I 000 oo Paid him John Goss' note for 350 00 Cash 300 00 My note for balance 350 00 6. Bot. of H. C. Curtis, House and lot on West Randolph Street, for 2700oo 00 I200 bu. corn, at 40. 480 00oo Paid him cash o 500 OG My note for balance 2680 oo 6. Sunds. To Sunds. Real Estate 2700 00 Mdse. 480 00oo Cash 500 oo Bills Pay. 268c 0oo 8. Sold Jones & Co., I200oo bu. corn, at 42~. 504 oo 4 shares I st Nat. Bank Stock, at $I oo 400 oo Recd. in paymt., cash 50o oo Their note for $200 A. C. Hall's note for 204 404 00oo I0. Bot. of Geo. Hoffman, A farm in La Salle Co., containing 80 acres, at $io 800 oo Paid him cash 400 oo My note 300 00 Ioo bu. wheat, at $I.oo I00 00 13. Paid R. C. Leonard cash for W. M. Brown's note 450 1 00oo 26 Rdles and Exercisej CHICAGO, MARCH I5, I872. Paid H. C. Curtis for my note, amounting to 2680 00 Paid him Jones & Co.'s note 500 00 Cash I500 00 6 shares New York Cen. R. R. Stock 600 oo My note for balance 80 oo _ S. Sold James Fisk, 8o acres of land in La Salle Co., at $I5 I 200 00 50 shares E. R. R. Stock, at $50 2500 00 Recd. in paymt. his note for 3700 00 23. Paid Geo. Bond, Cash for my note 400 oo00' John Smith's note 500 00 900 00 24. Bot. of W. 0. Drew, 400 bu. oats, at 254 $Ioo 500 " rye, "50 250 350 00 A vacant lot on State Street, for 1500 00 6 shares C. R.I. R. R. Stock, at $Ioo 600 00 Paid him my note for 450 00oo Cash ooo oo Potter Palmer's note 500 oo 500 bu. wheat, at $i.oo 500 00 SET I, NO. 4. BILLS OF EXCHANGE OR DRAFTS. A Draft or Bill of Exchange is an order to pay a specified sum of money. A foreign draft is called a.bill of exchange. Custom has established the commercial term of drafts for bills drawn and paid in the United States. zin Jozrnabzzing. 27 The person who makes or signs the order is called the drawer. The person to whom the draft is addressed is called the drawee. The person to whom it is made payable is called the payee. If " A" orders " B " to pay " C," A is the drawer, B is the drawee, and C the payee. FORM FOR A DRAFT. $500 Chicago, April 28th, I873. At ten days' sight pay Charles Jones or order five hundred dollars, and charge to the acct. of W. A. DREW. To Davis & Howe, 450 Broadway, New York. Q. Who is the drawer of the above draft? Q. Who is the drawee? Q. Who is the payee? RULE I. When you draw a draft on a person you should credit that person. RULE 2. When a person draws a draft on you, debit that person. CHICAGO, APRIL 1, I 8 72. Bot. of Scott & Co., 700 bu. wheat, at $I.25 875 00 Paid them my draft on Wheeler & Wilson for 875 00 Mdse. 875 00oo To Wheeler & Wilson 875 00oo __ _. 2. Paid Geo. Jones cash for Wm. Lyman's draft on me for 250 00 Wm. Lyman 250 00 To cash 250 00 3. Paid Johnson & Co., for C. B. Howard & Co.'s draft on me for I500 00 Paid I500 bu. corn, at 5o 750 00 Cash 700 00oo My note for balance 50 oo00 28 Rides and Exercises CHICAGO, APRIL 4, I872. Bot. of H. O. Freeman & Co., 7 shares City Bank Stock, at $oo00 700 o Paid them my draft on Geo. Jones 300 00 My note for 200 00 Cash I50 00 5 bbls. flour, at $Io 50 00 RULE 3. When you receive or purchase a draft drawn on other parties, you should debit Bills Receivable. A draft is a bill receivable when it passes from the hands of the drawer. RULE 4. When you sell or dispose of a draft drawn by other parties, you should credit Bills Receivable. CHICAGO, APRIL 6, I872. Sold Hall & Davis, 450 bu. rye, at 50 225 00 Receivcd their draft on the 2d National Bank for 225 00 8. Sold A. P. Andrews, for cash, the draft I recd. of Hall & Davis, for 225 00 9. Bot. of A. H. Hinman, A Bill of Mdse. as per invoice, amounting to I250 00 Paid him my draft on C. P. Smith & Co., for o90 00 My draft on L. Friend, for 300 00 Cash 50 00 A sight draft is one that is payable at sight. A time draft is payable at specified time after sight. in fozrzabzzizg. 29 When you accept a draft, you write " accepted" across the face of it, also your name and date of acceptance. Your acceptance becomes a Bill Payable, as it is your promise in writing to pay the amount of the draft. RULE 5. When you accept a draft, you debit the person that draws on you and credit Bills Pay. CHICAGO, APRIL 15, I872. Accepted Scott & Co.'s draft on me at 5 ds. for 475 oo I6. Sold John Wilson, 2oo bbls. flour, at $9 i8oo 00oo James Davidson's draft on Scott & Co. for 2000 00 Recd. in paymt., cash I000 00 Jones & Co.'s draft on me for 2000 00 Geo. Whitney's draft on me for 400 oo00 My note for 400 oo00 20. Accepted H. Williams' draft on me at io ds. for 600 oo H. Williams 6oo 00 To Bills Pay. 6oo 00 Paid cash for my acceptance, Scott & Co.'s favor 475 00 Bot. of D. Baldwin, 5 shares Mich. So. R. R. Stock, at $Iro 500 00 Paid him my draft on G. Harris for 250 00 My note for 75 00 Geo. Jones' note for 100 00 Wm. Lyman's draft on John Fox for 75 oo 30 Rules and Exercises CHICAGO, APRIL 30, 1872. PTaid cash for my acceptance, H. Williams' favor, amounting to 600oo 00 SET I, NO. 5. PERSONAL ACCOUNTS. Accounts kept with persons are called personal accounts. You debit a person when he costs you value. You credit a person when he produces you value. RULE I. When you buy of a person on account, credit him. RULE 2.'When you sell to a person on account, debit him. RULE 3. When you pay a person on account, debit him. RULE 4. When a person pays you on account, credit him. CHICAGO, MAY I, 1872. Bot. of James Williams, on acct. 75 bbls. apples, at $2 I50 00 2. Sold Charles Downs, on acct., 400 bu. oats, at 25 I00 00 700 " cotn, " 50 350 00 45 00 4Paid Wm. Gordon cash on acct. I45 25 Joz irnaizzu. 31 CHICAGO, MAY 6, 1872. Recd. of James Davidson, Cash on acct. 75 00 8. Bot. of A. C. Dewey, 750 bu. barley, at 6o0 450 oo Paid him cash 250 00 Balance on acct. 200 00 9. Bot. of R. H. Drew, 500 lbs. maple sugar, at I5~ 75 oo Paid him cash 25 00 My note for 25 00 Balance on acct. 25 00 I0. Accepted A. Bailey's draft on me for the balance due him on acct., for 435 00 _ II. Paid J. McMillan ogi acct., with my draft on W. A. Drew, for 725 50 J. McMillan 725 50 To W. A. Drew 725 50 I3. Tracy & Co. paid me on acct., with their draft on Wm. Wells for 70 oo Their note for 50 00 Cash 100 00 220 00 Geo. Davis paid me on acct. with my note for i80 35 32 Rules anzd Exercises CHICAGO, MAY 20, 1872. Paid A. Bailey for my acceptance for 435 oo00 Paid my draft on R. H. Drew for 75 00 My note for 200 00 Cash for balance i60 oo 22 _ Bot. of Geo. Folson, 400 bu. corn, at 30 120 00 Chas. Burnham's note for 1 73 28 Paid him my draft on A. C.Druitt for 145 00 Cash 48 28 3._ _ 23 Paid Edwd. Bates for my note, amounting to 1675 00oo Paid him my draft on Wm. Curtice for Iooo 00 My note for 6o0 oo Cash 15 00 Balance on acct. 60 oo 21. Accepted G. Fisher's draft on me at Io ds. for I 25 00 28. Paid John Smith cash on acct. 95 oo00 30. Recd. of Tracy & Co., Their note for bal. due me on acct. 450 00oo SET I, NO. 6. INTEREST AND DISCOUNT. Interest represents a sum paid by the borrower to the lender for the use of money. in 7ourna/izbig. 33 RULE I. Debit interest whenever you pay anything for the use of money or lose by it. Interest should always be debited on Bills Payable. RULE 2. Credit interest whenever you receive anything for the use of money or whenever you gain by it. Credit interest on Bills Receivable. The student must not get the idea that he receives or pays interest but receives or pays for interest, or for the use of money; and whatever he receives or pays for the use of money should be debited or credited. CHICAGO, JUNE I, I872. Paid Win. Allen cash for my note and interest Face of note 100 00 Interest I 00 Sunds. To Cash IO 00 Bills Pay. I00 00 Interest IO 00 In the above entry, Interest costs value, and should be debited. 2. Recd. of David Jones, Cash for his note and interest 495 00 Face of note 450 oo Interest 45 oo The Journal entry should be Cash To Sunds. The sunds. are Bills Rec. and Interest. No account is made with interest till it is received or paid.'3. Sold David West, Ico bbls. flour, at $8 800 00 Recd. in paymt. my note for 500 00 Interest due on note i 50 00 HIis note for balance. 250 oo00 c 34 Rules aniul Exercises CHICAGO, JUNE 4, I872. Paid R. Wilson for my note for 480 oo Interest on note 48 oo Paid him cash 480 00 6 bbls. flour, at $8 48 oo 5. Bot. of John Long, 50 bbls. flour, at $7 350 0o Paid him cash i50 00 Mly note for I25 CO Balance on c 75 oo Discount is the deduction made for the payment of money before it is due. Discount, like interest, should be debited whenever yotu lose by it, andcredited whenever you gain by it. lO. Discounted in Drew's College Bank, C. H. King's note for 500 00 Recd. cash, less discount 49 - oo Discount off I o 00 Sunds. To Bills Rec. 500 oo Cash 490 00 Discount Io 00 _5. Discounted my note, Geo. Jones' favor, for 250 00 Paid cash, less discount 247 50 Discount off 2 50 Bills Pay. To Sunds. 250 00 Cash 247 50 Discount 2 50 Sold Wi. Watson, Sold Wmll. Watson, 250 bu. wheat, at $I 250 00 Recd. in paymt. his draft on John Smith for 150 00 Cash I00 co u 7Y 0 Iv/ rS1/f Zzzg.i 35 CHICAGO, JUNE 17, 1872. I have drawn a draft on Wm. Lyman for the balance due me on acct., and discounted the same in the Ist Nat. Bank. Amount of draft 350 00 Recd. cash 346 50 Discount on draft 3 50'z9. Sold J. McMillan, 75 bbls. apples, at $2.50 I87 50 Recd. C. Howard's note, at 5yo disct. Face of note 100 00 Discount on note 5 00 Cash 92 50 Credit Mdse. and Dis. and debit Bills Rec. and cash. 20. i Sold James Druitt, on ac, at 3o ds. 400 bu. wheat, at $I.20 48' 00 9 2. James Druitt has this day discounted the bill due me for Mdse., amounting to 480 oo00 Recd. cash 456 00 Discount off 24 00 Cr. James Druitt. 30. Bot. of Chas. Boyd, His draft on C. P. Smith & Co., for 150 00 at 5J discount. 42 5 Paid cash 1427 50 Discount off' 36 Rules and Exercises SET I, NO. 7. PREMIUM, EXPENSE, AND PROFIT AND LOSS ACCOUNTS. RULE I. When you pay more for a draft or bill of exchange than its face you debit Premium. RULE 2. When you receive more for a draft than its face you credit Premium. RULE 3. When you lose you debit Profit and Loss. RULE 4. When you gain you credit Profit and Loss. RULE 5. When you pay out anything to carry on your business at the store, you debit Store Expenise. When you pay for any expense for your family, you debit Family Expense. When you pay out anything for your personal expense, you should debit Personal Expense. You can, however, keep the full expense account under the head of Expense if you do not wish to keep separate expense accounts. CHICAGO, JULY, I, 1872. Paid Cash for rent of Store Room, One month in advance, 75 00 2. Bot. of Geo. Thompson for Cash, His Dft. on Smith & Rising, at 2 % discount. Face of Draft, 500 00 Paid cash less discount. 490 oo00 Discount off, 10 00 3. Paid cash for a Gas Bill, for gas consumed at my private residence, Amounting to ro 50 37 CHICAGO, JULY 5, I872. Bot. of Geo. Wells, I400 bu. Corn, at 30o 420 00 Paid him my draft on Howard & Co., N. Y., at 2% Discount. Face of draft 420 00 Discount off 8 40 Paid cash for balance 8 40 Debit Mdse and Discount. 6. Paid John Jones on alc with my draft on Geo. Davis, at 5% premium. Face of draft Ioo oo00 Premium 5 00 105 00. Bot. of Howard & Co., their draft on J. J. Astor, at 3% premium. Face of draft 400 oo Premium 12 00 Paid cash 3oo00 My draft on C. P. Smith & Co., foi balance iI2 00 Paid cash for Groceries, purchased of Riale'Bros. 25 00 I 2. Paid cash for a new suit of Clothes for my personal use 60 oo I8. John Smith owes me on his note 250 00 Having failed he has paid me 50%o on a dollar. Received cash I25 00 Lose the balance 125 00 38 Ruies and Exercises CHICAGO, JULY 20, Is72. H. Williams owes me on c 70 00oo He having become insolvent and absconded, I lose the whole debt 70 oo 22. Found a pocket-book containing a sum of money, and having advertised the same, have not found the owner. I have invested the same in my business, amounting to 475 oo 23. The thieves broke into my store last night and carried off Mdse. valued at 250 oo 26. Geo. Goodrich has called at my store and given proof that the money found, on the 22d inst., belonged to him. I have paid him the full amount 475 oo. _ _ _ _ 2.475 00. The thieves that broke open my store have been arrested. and Mdse. recovered amounting to I 7 00 SET I, No. 8. SHIPMENT OR CONSIGNMENT ACCOUNTS. RULE I. When you ship goods to be sold on your account and risk, you make shipment to the place you send them Dr. for the full cost of the Mdse. and charges, and credit what you ship or what produces the shipment. iii Jourzaiziz g. 39 CHICAGO, AUGUST I, I872. Shipped to Johnson & Webb, Buffalo, to be sold on my alc and risk, 25oo bu. corn, at 25~ 625 00 I500 " wheat, at $I 1500 00 2125 00 3. Shipped to Scott & Co., N. Y., to be sold on my 7/c and risk, 2500 bu. wheat, at $I 2500 00 Paid cash for insurance 25 25 2525 25 5'. Bot. of John Goss, with my note, and shipped to Wright & Gibbs, Toledo, to be sold on my cle and risk, 5000 bu. corn, at 25~ I250 00 An account sales of a shipment is a statement of the sales, charges and net proceeds. The total sales are called the gross sales, the balance after the charges are deducted is called the net proceeds. RULE 2. When you receive an account sales of a shipment, and the person to whom you made the shipment sends only the account sales and does not remit to you, you debit him, for he has the net proceeds of your shipment. If he remits, debit what you receive and credit the shipment. Recd. from Johnson & Webb, Buffalo, an acct. sales of my shipment of the Ist inst. They have remitted their draft on the First Nat. Bank for the net proceeds, amountingto 2500 00 40 Riles aied Exercises CHICAGO, AUG. i 6, I 8 72. Received cash for the draft on the First National Bank, 2500 00oo 17. Received of Scott & Co., New York, an acct. sales of my shipment to them on the 3d inst. Net proceeds due on /c, 2750 00 20. Bot. of Foster & Wells, Buffalo, on account, and shipped the same to Scott & Co., N. Y., to be sold on my acct. and risk, 250 barrels of flour, at $10, 25o00 oo00 Shipment from Buffalo to N. Y. To Foster & Wells 22. I have drawn a draft on Scott & Co., New York, for the balance due me on acct. and discounted the same in Drew's College Bank Face of draft 2750 oo00 Recd. cash for proceeds of draft 2722 50 Discount on draft 27 50 25. Received intelligence that my shipment from Buffalo to N. Y. was destroyed by fire in the warehouse of Scott & Co. The shipment not being insured, the total loss amounts to 2500 00oo z 7/ onuruzalzzu~z g. 4' CHICAGO, AUGUST 26, 1872. Bot. of Armour, Dole & Co. on acc-. 2750 bu. corn, for 67 5 00 Paid cash for insurance on the same 68 75 68 75 Mdse. To Sunds. 681 75 Armour, Dole & Co. 675 o00 Cash 6 75 29. Bot. for cash of Johnson & Blake, N. O., and shipped the same to Boston, to be sold on my account, 27,500 lbs. of cotton, at I50 4125 00 Paid cash for drayage 10 00 4I35 00 Shipt. from N. O. to Boston 4135 00 To Cash 41i35 00 Paid Armour, Dole & Co., on acct., Cash 350 00 My draft on J. Jones for 200 00! 550 oo SET I, No. 9. STOCK AND PARTNERSHIP ACCOUNTS. The Stock Account used in Double Entry Book-keeping represents the resources and liabilities of the person doing business. On opening a set of books a statement should be made, giving a list of the resources and the liabilities. RULE I. In journalizing the resources, debit the property on hand and the persons that owe you, and credit Stock for the full amount. Journalize the following entries:CHICAGO, SEPT. I, 1872. I invested cash in business amountingto 2500 00oo Cash 2500 o00 |i To Stock 2500 00 42 Rules and Exercises CHICAGO, SEPT. 2, I872. Inventory of my resources. Mdse. as per inventory I5o0 00 Cash on hand 700 00oo Geo. Wilson owes me on a/ 250 00 Amos King on his note 300 00 2750 00 RULE 2. In journalizing the liabilities or debts, debit Stock for the full amount of your liabilities, and credit the persons that you owe and Bills Pay. for the amount due on your note. The student must bear in mind that Resources, Effects or Assets represent your property and what is due you; and Liabilities, your debts. If the Resources exceed the Liabilities, the difference or balance is called Net Capital. If the Liabilities exceed the Resources, the balance is called Net Insolvency. 3I owe on commencing business John Long on ae 75 00 David Watson on my note I50 00 Chas. Jones on a/c200 00 425 00 5. Inventory of my resources, Cash 3000 00 Bills Rec. as per Bill Book oo700 00 W. W. Wright owes me on ac | 50 00 Samuel Davis " " 60 o o 38Io 00 LIABILITIES. I owe J. Graves on al72 00 W. Goodrich " I00 00 Geo. Goldsmith on my note $500 Joseph Friedman on my note 200 700 00 872 oo z 7ozrnza/zzizg. 43 RULE 3. When two or more persons enter into partnership, make a statement of the resources invested in the firm by each partner; and if the liabilities of either partner are assumed by the firm, debit each partner for the amount thus assumed, and credit the persons that he owes, and Bills Pay. for the amount of notes outstanding. RULE 4. When a member of the firm puts in or invests resources in the firm, he should be credited. RULE 5. When a member of the firm draws out resources from the firm for his private use, debit him. RULE 6. When the firm assumes the payment of the private debt of either member of the firm, debit that member. John Smith and Wm. Lyman have this day entered into partnership in the Dry Goods and Jobbing Business, under the firm of Smith & Lyman, parties to share equally in gains and losses. CHICAGO, SEPT. 25, 1872. John Smith invested Bills Rec., as per Bill Book 1400 00 6 shares C. B. & Q. R. R. Stock, at $Ioo 600 oo Mdse. as per inventory 2000 00 John Fox owe's him on acct. 500 00 Cash 500 00 5000 00 inVm. Lyman invested Real Estate 1500 00 Io shares Ist Nat. Bank Stock, at $Ioo I 000 00 Bills Rec. as per Bill Book I500 00 Cash 500 00 4500 00 44 Rules and Exercises CHICAGO, SEPT. 25,:872. John Smith's liabilities assumed by the firm, Due Howard & Co., on le 700 00 Chas. Kendall, on his note 25 oo00 E. Drew, on ac 50 00 775 00 Wm. Lyman's liabilities, Due E. Richards, on a 65 00oo A. H. Kendall, on his note Ioo oo00 65 00 QUESTIONS FOR REVIEW. What is Book-keeping? How many methods are there for keeping books? Explain the difference between Single and Double Entry. How many principal books are kept by Single Entry? How many by Double Entry? Do you keep a Journal by Single Entry.? In what book do you express the Debits or Credits by Single Entry? In what book do you express the Debits and Credits by DoubleEntry? What is the Ledger? What is the first rule for Journalizing? Repeat rule second. 1i 7o riu dz zzizg. 45 Suppose you buy wheat of John Smith and pay cash, how would you journalize the entry? Suppose you sold wheat to Geo. Jones, and received cash. Journalize the entry. Journalize the following entries: Sold Wm. Watson for cash a House and Lot. Bot. 2 Shares C. B. & Q. R. R. Stock, and paid flour. Sold John Smith 500 Bush. Corn for cash. The teacher can drill the classes in mental Journal entries, exercising his ingenuity in putting the questions to the student. The author of this work has adopted this method of giving mental Journal entries for the past ten years in his business colleges with the most satisfactory results. REVIEW OF NO. 2. SET I. What is a Promissory Note? Under what Ledger titles do you express these notes? What is a Bill Rec.? What is a Bill Pay.? When you receive another person's note, what do you debit? When you dispose of this note, what do you credit? When you give out your own note, what do you credit? When you receive back or redeem your note, what do you debit, and what do you credit? A. I debit Bills Pay. and credit whatever I pay in exchange for the note. If you buy corn of D. Lyman and pay your note, what is the Journal entry? Rec. Cash for John Smith's note. Journalize the entry. Paid cash for your own note. Paid cash for Geo. Jones' note. Received John Smith's note in exchange for yours. Bot. a farm and paid your note. 46 Rules andI Exercises No. 3. SET I EXERCISES IN JOURNALIZING-CONTINUED. Bot. corn, paid cash and your note. Sold rye, recd. cash and John Lyman's note. Bot. corn and oats, paid cash, your note, and Amos King's note. Sold house and lot and Commercial Bank Stock. Rec. in paymt. cash, your note, and Wm. Ross' note. No. 4. SET I. What is a Draft or Bill of Exchange? Who is the-drawer of a draft? Who is the drawee? Who is the payee? Whom do you credit when you draw a draft on a person? What do you do when a person draws on you? What do you debit when you receive or purchase a draft drawn by A on B? A. I debit Bills Rec. What do you credit when you sell a draft drawn by A on B? What is a Sight Draft? What is a Time Draft? How do you accept a draft? When you accept a draft, do you make a promise in writing to pay it? What does your acceptance become to you? A. A Bill Pay. Accepted John Jones' draft on you at ten days. Journalize the entry. Paid cash for your acceptance. Bot. corn and paid your draft on Jones & Co., for the same. Paid Wm. Allen cash for Joseph Friedman's draft on you. izi 7our a,/ zzizg. 47 Sold Geo. Hoffmann Mdse. Rec. in Paymt. his draft on Davis & Co. The teacher can add to the list of mental exercises given here if the student requires them. No 5. SET I. What are Personal Accounts?'When do you debit a person? When do you credit a person? Whom do you credit when you buy of a person on account? When you sell to a person on account, what do you do? When you pay a person on account? When a person pays you on account? Bot. flour of John King on account. Paid John Smith cash on account. Geo. Jones paid you on account with his note. Bot. Sugar of Wm. Goss, paid him cash, your note and the balance due on account. Paid W. A. Drew on account with your order on C. Curtis. No. 6. SET I. What is Interest? What is Principal? When do you debit Interest? On what bills do you debit Interest? On what bills do you credit Interest? REMARK.-When you buy a note and pay for or make an allowance for the interest due on the note at the time of purchase, you debit interest on Bills Receivable. In all other cases credit interest on Bills Rec. What is Discount? When do you debit Discount? When do you credit Discount? 48 Ru/es and Exercises Paid cash for your note and interest. Journalize the entry. Rec. cash for A. Stone's note and interest. Discounted Wm. Wells' note in the bank. Received cash less discount. Discounted your note, C. Williams' favor, paid cash less discount. No. 7. SET I. When do you debit Premium? When do you credit Premium? When do you debit Profit and Loss? When do you credit Profit and Loss? When do you debit Store Expense? When do you debit Family Expense? When do you debit personal expense? The teacher can add to the list of mental entries on Nos. 7, 8 and 9, similar to those given on the preceding numbers in this work. No. 8. SET I When you ship goods to be sold on your own account and risk, what is the rule for Journalizing the entry? What is an account sales of a shipment? When you receive only an account sales of a shipment, whom do you debit? When the consignee remits cash with the account sales, what do.rou do? A. Debit cash and credit the shipment. No. 9. SET I What does the Stock Account represent? What is necessary to do when you open a set of books? A. Make a statement of the resources and liabilities in the Day Book or Journal. ii 7ou ry a/izuig. 49 NEGOTIABLE PAPER. By negotiable paper is meant, evidence of debit which may be transferred by indorsement or delivery, so that the holder may sue the same in his own name. Among the list and the most common in use, are promissory notes, bills of exchange, bank checks, etc. If A gives B his note payable to B or bearer, B can sell it to C by delivery, but if A promises to pay B or order, B must indorse the note to transfer it to C; that is B must write his name on the back of the note. B's name is his order for A to pay C or bearer, then C could collect from A, but if A was unable to pay, then C could collect from B. If B, however, had written after his signature the words "without recourse," then C would lose the value of the note if he could not collect from A. If B indorses A's note, he promises to pay it if A does not, and if B, C and D indorse A's note and E holds the note at maturity, E would look to iA, the maker, first, then to B, then to C, in the order in which the indorsements were made. Every person who indorses a note promises to pay it, if the maker and previous indorsers fail, unless he writes the words " without recourse," which releases the indorser from payment of the note. E could not, however, collect A's note from the first indorser B, until he had used all legal means to collect from A; and the statutes in most of the States require written notice to be given the indorsers if the maker does not pay at maturity, or the indorsers are not holden, for the law supposes that if B pays A's note, that he should receive due notice that the maker has not paid it at maturity, that he may have an opportunity to collect from A, the maker, if resources can be found belonging to him. A draft varies from a promissory note in this respect: There is a direct promise by the maker of the note to pay the payee or his order, or to bearer, while the drawer of a draft makes an indirect promise to pay the payee, only on condition that the drawee does not. If A draws a draft on B in favor of C, and B dishonors it by refusing to pay it, then A would be holden for the amount and C could collect the amount of draft from A, together with the costs, but if A ordered B to pay C, and B accepts the draft by writing "accepted" D 5o ~Negotiable Payper. across the face together with date and signature, then B would be holden to C for the payment of the draft at maturity, and if C could not collect from B, then he would have recourse on A. The drawer of an accepted draft is holden for payment, on the same conditions as the first indorser of a promissory note. 11 A promises to pay B a sum of money, and does not insert the words, or order, or bearer, the note is not negotiable. A promissory note may be written on paper or a good substitute for it, with ink or pencil, in any language. There is no special form required by law; but to make a perfect promissory note, it should be written on paper, with ink, in a plain hand. It should be dated, and the sum written in the body of the note. The figures, corresponding with the amount in writing, should be made at the left hand corner at the top. It should specify when it is to be paid, and the rate per cent. for interest, and if to be paid at any particular place, it should be mentioned in the note. A promissory note will not draw interest unless so specified. If, however, it is not paid when due, it will draw the legal rate from that time till the final settlement. The legal rate of interest is that established by law, which varies in different States. If the note specifies that it is to draw interest and no rate is mentioned, it will draw the legal rate only. When more than the legal rate is collected it is called usury. There is a penalty for collecting usury in all the States but California. This varies in different States, from the forfeiture of the interest to the whole debt and interest. The legal rate in Illinois is six per cent. when no rate is mentioned, but as high as ten per cent. is legal if specified in the note. All time paper has three days of grace in all the States but California; but when the third day comes on Sunday, or a legal holiday, it is due on the second day of grace. If there are indorsements to a promissory note, the holder should present it for payment, when due, at the maker's place of business, during business hours, and'if not paid by the maker when due, written notice should be sent to the indorsers. If payable at a particular place, as at a bank or an office, the note should be left there for collection, and written notice sent to the maker when the note matures. It would be well to observe the same rules if there were no indorsers. but the rules of the law are more exact on the subject of negotiable iVegotiable Pajper. 5 paper where there are indorsers than those of any other department of Mercantile Law. A check on a bank should be presented as soon as convenient, say on the day it is received or the day following. Bank checks are seldom accepted by the bank, but they are often certified by the teller, who writes " good " on the check, over his signature, which binds the bank for the payment of the same. The student having acquired the principles of Debit and Credit from the exercises in Journalizing, can now proceed to Journalize the following transactions which we will call the Day Book or memoranda of the business. Check with this mark (/) on the left of the Day Book entries after journalizing, to avoid omissions. 52 Day Book. Set 2, No. 1. DAY BOOK. SET 2, No. I. CHICAGO, JAN. I, I873. I have this day invested cash in business amounting to 500 00 2. Paid cash for rent of store room, one month in advance 25 00 3J. Bot. of Geo. Jones for cash, 20 bbls. flour, at $4.25 85 00 12 bbls. beef, at $I I.25 I35 00 5 bbls. pork, at $8 40o oo 260 oo 5. Sold John Smith for cash, 20 bbls. flour, at $5 Ioo 00 12 bbls. beef, at $I2.50 150 00 250 00 8. _ _ Bot. of Wil. Watson on alc, 75 bbls. pork, at $9 675 00 I5 bbls. beef, at $I I i65 00 840 00 12. Sold Geo. Williams on acc, 25 bbls. pork, at $io 250 00 10 " beef, 12.5 0 125 00 375 00 Day Book. Set 2, No.. 53 CHICAGO, JAN. I3, I873. Bot. of Wm. Simpson, 120 bbls. flour, at $4.50 540 00 Paid him cash 300 00 Balance on ale 240 00'5. Sold David Jenkins, 50 bbls. pork, at $io 500 00 20 " flour, " 5 00 00 6o0 00 Recd. in paymt., cash $450 Balance on alc I50 _i6. Sold James Wells, on his note, 50 bbls. flour, at $5 $250 i 5 "( beef, " 12 6 3 00 Bot. of Geo. Johnson, on my note, 20 bbls. beef, at $9 i80 00 4 " pork," 8 32 0~ 212 00 20. Sold R. Lewis, for cash, 20 bbls. beef, at $io 200 00 25. Recd. of David Jenkins, Cash on acct. I50 00 Paid Wm. Simpson, on acct., 40 bbls. flour, at $6 240 00 Cash 200 00oo 440 o00 54.7oriau. No. I, Set 2. CHICAGO, JAN. 30, 1873. Paid Geo. Johnson cash for my note 212 oc00 Inventory of Mdse. on hand, 9 bbls. beef, at $8 $7 2 Io bbls,. flour, at $5 50 $122 JOURNA L. No. I, SET 2. CHICAGO, JAN. I, 1873. 63 Cash 500 00 63 To Stock oo00 00 2. 63 Store Expense 25 00 63 To Cash 25 00 364 Mdse. 260 00 63 To Cash 260 00 5. 63 Cash 250 00 64 To Mdse. 250 00 58. 64 Mdse. 840 00oo 64 To Wm. Watson 840 00oo oirua/. N7o. I, Set 2. 55 CHICAGO, JAN. I2, I873. 64 Geo. Williams 375 oo 64 To Mdse. 375 oc I3. 64 Mdse. To Sunds. 540 oo 63 Cash 3oo00 00oo 64 Wm. Simpson 240 00oo I5. 64 Sunds. to Mdse. 6o0 oo 63 Cash 450 oo 65 David Jenkins I50 oo 65 Bills Rec. 3I0 00 64 To Mdse. 3I0 00 64 Mdse. 212 00 65 To Bills Pay. 212 00 20. 63 Cash 200 00 64 To Mdse. 200 00 25. 63 Cash i5 0o 65 To David Jenkins I50 00 26. 64 Wm. Simpson To Sunds. 440 00 64 Mdse. 240 00 63 Cash 200 00 30. 65 Bills Pay. 212 00 63 To Cash 2I2 00 56 Postinig to Ledger. POSTING TO LEDGER. The student having Journalized No. I. Set 2, can now proceed to post the same to the Ledger. Posting is grouping, or collecting the accounts. All the Debits of Mdse. expressed in the Journal must be posted to the debit side of this acccount in the Ledger, and the Credits of Mdse. on the credit side of the Mdse. Account. The same rule will apply to all the other accounts. First open an account with Stock in the Ledger, and as Stock is credited by cash in the Journal, we post to the credit side of Stock, "By Cash $5oo," entering the page of the Ledger in the Journal, and checking.in the Journal the page of the Ledger. Next in the index under the Letter S, write the word Stock, and the page on which the Stock Account is found in the Ledger. Next open an account with Cash in the Ledger, and debit it " To Stock," and note in the index the page of the Cash Account. Index every new account opened in the Ledger. The fext account that appears in the Journal is the Expense Account. As we have no Expense Account open in the Ledger, we open one and debit it " To Cash," and credit Cash by Expense. After the student has posted all the accounts found in the Journal for this number, he can proceed to take the first Trial Balance; that is, add the debits and credits of all unbalanced accounts in the Ledger. The object in taking the first Trial Balance is to ascertain if the Ledger is in balance, or in other words, if we have an equal amount of debit and credit in the Ledger.' If the Ledger is in balance, it is good evidence that our work is correct, but not positive proof. Either of the following errors could be committed and still obtain the first Trial Balance: I. Incorrect Journalizing. 2. Posting to wrong accounts. 3. Neglecting to post all the accounts. The experienced accountant is not apt to post to the wrong account, but more liable to post to the wrong side of the account, or omit to post the right amount of debit or credit, which would -throw the Ledger out of balance. If the Ledger is out of balance it cannot be First Trial Balance. 57 closed; furthermore, it is certain there is a mistake which must be looked up. Students may at first find some difficulty in detecting the error, if the Ledger does not balance, but as a prominent feature of learning to keep accounts, is learning to look up and correct errors, the student should learn how to detect them. First examine your additions; be sure you have made no mistake in footing up your accounts in the Ledger, or in footing the total Ledger accounts. If assured that the additions are correct, check from the Journal to the Ledger, making a dot with a pencil on the line where each account is posted. After having checked all the entries in the Ledger, examine in detail all the accounts posted to the Ledger, and if there are entries posted not checked, erase the figures only, and thus proceed till the first Trial Balance is obtained. The pencil marks in the Ledger should be erased with a rubber. Neatness is indispensable to a good accountant. The teacher should insist that the work be neatly done. If the work is posted correctly the following Trial Balance will be obtained. The student should carry out the balances as shown in the form. He can copy this in the Journal and refer to it when making out a balance sheet. All ruling should be made in red ink, and red ink should be used where italics occur in this work. FIRST TRIAL BALANCE FOR No. I, SET 2. JANUARY I873. Face of Ledger. Balances. Dr. Cr. Dr. Cr. Stock__500 00 500 00 Cash — 1 —-5 --— 0 ----- I550 o 997 00 553 00oo Store expense 25 00 25 00 Merchandise —1 —-- I852 00 I975 00 I23 00 Wm. Watson 840 oo 840 00 Geo. Williams --------- 375 00 375 00 Wm. Simpson --------- 440 00 240 00 200 00 Bills Rec. -310 00 3IO 00 4552 00 4552 00 I463 00 1I463 00 O_ o 58 Closing the Ledger. CLOSING THE LEDGER. Having obtained the correct Trial Balance, the student can close the Ledger. By closing we obtain a condensed statement of our financial standing at the time, which, compared with the statement made at the time of opening our books, will show our gain or loss in business. We will first open an account representing our gains and losses, which we will call Profit and Loss Account, and WE WILL TRANSFER OUR LOSSES TO THE DEBIT OF PROFIT AND LOSS, AND OUR GAINS, TO THE CREDIT OF PROFIT AND LOSS. We will open an account, to which we will transfer our Resources and Liabilities, which we will call the'Balance Account, and WILL TRANSFER ALL THE RESOURCES TO THE DEBIT OF BALANCE AND THE LIABILITIES TO THE CREDIT OF BALANCE. The student should thoroughly understand the above instructions before proceeding to close, for he should not only know how to do it, but why he does it. Next bring the amount of unsold property on the credit of the account it represents. In this set the unsold property is Mdse., amounting to $122. On the credit of the Mdse. Account in the Ledger, with red ink, we make the entry " By Bal. Inv. $I22," and transfer this amount to the debit of Balance, because Mdse. unsold is a resource, and make the entry in black ink,'To Mdse. Inv.," $I22. Should there be other species of property on hand, proceed in the same way. We will, for the present, leave Stock unclosed, for the reason that the balance of stock represents our Net Capital, and we wish to increase or decrease it with our gains or losses in business. Now close the first account after Stock, which is Cash. The debit of Cash shows the amount of cash on hand when we commenced business, together with what we have received since. The credit of Cash shows the amount of cash paid out. The difference or balance, must show the amount on hand, which is entered on the credit of Cash in red ink, "By Balance," and transferred to the debit of Balance in black ink " To Cash. " The inventory and closing entries should be made in red ink. In transferring these amounts, the student should remember, the balances are always transferred in black ink to the opposite side from the closing entry in red ink. This brings the balance on the same side Closing the Ledger. 59 as before the transfer, as the closing entry is the excess of the larger side. The Bal. of Cash, $553.00 shows a resource, or amount on hand, and should be transferred to the debit of Balance. Next in order comes Expense Account. The debit of an Expense Account shows the expense of the business. In this No., it is $25, the amount paid for store rent, and represents a loss, which is transferred to the debit of Profit and Loss. The debit of Mdse. shows what Mdse. has cost us, or what we paid for it. The credit shows the sales of Mdse., or what it has produced us. We must add the unsold Mdse. to the sales, and the balance will show a gain or loss. As it produced $245 more than it cost us, we must come to the conclusion we have made $245 on Mdse., which must be transferred to the credit of Profit and Loss. Wm. Watson's account is next in order. He has a credit by Mdse., showing that we purchased that amount of him on account, and as he has no debit, the balance being $840, a liability, must be transferred to the credit of Balance, making the entry, "To Balance," in red ink, on the debit of his account, and by "WinWm. Watson " on the credit of Balance, in black ink. Geo. Williams owes us $375 for Mdse. sold him on the I2th. This sum shows a resource, which should be transferred to the debit of Balance. WinWm. Simpson owes us $200 on account, which shows a resource, and we transfer to the debit of Balance from the credit of Wm. Simpson's account. David Jenkins' account balances, and as we have no resource or liability in his account, we close the account. The debit of Bills Rec. Account, shows bills or notes received. The credit would show the amount of Bills Rec. sold. The balance should always show the amount of notes on hand. In this set it amounts to $31o, which is a resource, and should be transferred to the debit of Balance. The credit of Bills Payable Account, shows the amount of our notes issued. The debit, our notes redeemed. The Balance, the amount outstanding. This account balances, having redeemed with cash the note issued for Mdse. Having closed all the accounts in the Ledger but Stock, Profit'and Loss, and Balance, we now proceed to take the second Trial Balance, 60 Second lial Bala ce. which will prove that we have transferred the correct Balances. The second Trial Balance is the amount of debits and credits of the unclosed accounts. The following is the result: Stock - 500 00oo Profit and Loss 25 00 245 00 Balance —--------- -------------- 1560 00 840 00oo i-1585 00 1585 00 This Trial Balance is not recorded. Should there be partners, bring them into the second Trial Balance. We will now close Profit and Loss into Stock. By inspection, we find the loss amounts to $25, and the gains to $245; making a net gain of $220. By examination of the Stock Account, we find that we had a Net Capital of $500 when we opened the books, and having a net gain of $220, we transfer from the debit of Profit and Loss, in red ink, to the credit of Stock, in black ink. Our Net Capital now amounts to $720. We now close Stock into Balance, transferring from the debit of Stock to the credit of Balance; making the entry, By Stock, in the Balance Account in red ink, as it shows our Net Capital and is the closing entry in the Balance Account. It is hoped that our explanations of this No., have been so thorough and simple that the student will understand them, and be able to Journalize, post, and close No. 2 without difficulty. The student will find a list of the resources on the debit of Balance, and liabilities on the credit of Balance; losses on the Dr. of Profit and Loss, and gains on the Cr. of Profit and Loss. The student should now make out a Balance Sheet as shown in this work. This balance sheet is the most practical form of mgaking a condensed statement of the business transactions, and can be made out at any time by taking an inventory of the unsold property, and the first Trial Balance. If the student does not thoroughly understand posting, and closing this No., he will do well to go over the work again. Ledger Index. 6 LEDGER INDEX. B. Bills Receivable, 65, 87 Hart, Jones & Co.,. 88 " Payable, 65, 88 Balance, 65, 90 C. I..J. Cash, 63, 86 Interest, 89 Carpenter, B. F., 87 Jenkins, David, 65 Chapin & Jones, 89 Jones John, 88 D. K. Day, Harvey, 89 Discount, 89 E. L. F. M. Field, Leiter & Co., 88 Merchandise, 64, 87 62 Ledger Idex. LEDGER INDEX. N. T. O0. U. Owens, Chas., 88 P. V. Profit and Loss, 65, 90go Q. ~~w. Watson, Wm., 64 Williams, Geo., 64 R. X. Riale Brothers, 89 S. Y. Z. Stock, 63, 86 Store Expense, 63, 89 Simpson, Wm., 64 Stewart & Sons, 87 Ledger No. i, Set 2. 63 LEDGE R. No. I, SET 2. Dr. STOCK. Cr. 7an. 3I To Ba?. 65 720 00 Jan. I By Cash 54 500 00 31 By Profit & Loss 63 220 00 __________ 720 00 720 00 Dr. CASH. Cr. Jan. I To Stock 54 500 Jan. 2 By StoreExpense 54 25 00oo i 5 Mdse. 54 250 00 3" Mdse. 54 2(f0 00 1 I5.. 55 450 00 13....55 300 00 " 2u.. 55 200 00 26 "Wm. Simpson 55 200 00 25 D. Jenkins 55 15000 30 Bills Pay. 55 2I2100 |31 Ba!. 65 553 00 ____ _= IS1550 00 1 I550 00 Dr. STORE EXPENSE. Cr. Jan. 2 To Cash 54 25 00 7an. 31 By Prfit Loss 65 2500 25 CO 25 00 64 Ledger. No. i, Set 2. No. i, SET 2. Dr. MERCHANDISE. Cr. Jan. 3 To Cash 54 260 00oo Jan. 5 By Cash 54 2501 00 8 " Wmin. Watson 54 840 00 loo2 " G. Williams 55 375 00 I3 Sunds. 55 540 00 I5 Sunds. 55 6o00 oo I8 " Bills Pay. 55 2I2 00 " I6 Bills Rec. 55 310 00oo 3 I3 Pvofit & Loss 65 245 00~~ i20 " Cash 55 200 00 " 26 W. Simpson 55 240 00 an. 3r " Bal. Invt. 65 I22 00 _2097 00 2097 00 Dr. WM. WATSON. Cr. ian. 3I To Ba. 65| 840 00| Jan. 81 By Mdse. 54 840 00 Dr. GEO. WILLIAMS. Cr. Jan. 12 To Mdse. 55 375 00 y7an. 3I By Bal. 65 375 00 Dr. WM. SIMPSON. Cr. Jan. 26 To Sunds. 55 440 00 Jan. 13 By Mdse. 55 240100 3I Ba. 65 20000 440 00 440 00oo I _____________________ _4_ __. Ledgelr. No. I, Set 2. 65 No I, SET 2. Dr. DAVID JENKINS. Cr. Jan. iS To Mdse. 55 150 00 Jan. 25 By Cash 55 I5_ 00 Dr. BILLS RECEIVABLE. Cr. Jan. i6 ToMdse. 55 3Ioo00 |7an 3 BY Bal. 65 310 00 Dr. BILLS PAYABLE. Cr. Jan. 3o To Cash 55 2I2 00 Jan. i8 By Mdse. -5 2I2200 LDr. PROFIT AND Loss. Cr. Jan. 31 To Store Expense 63 25 00 Jan. 31 By Mdse. 64 245 00 To Stock 63 220 00 _ 245 00. - 245 00 i)Dr. BALANCE. Cr. Jan. 31 To Mdse. Invt. 64 22 00 Jan. 3I By Wm. Watson 64 840 0oo Cash 63 553100 By Stock 63- 720100 G. Williams 64 375 00oo W. Simpson 64 20000oo " Bills Rec. 65 310oo00 __ I5600 oo 56000 - J BALANCE SHEET FOR No. I, SET 2. Face of Ledger. Profit and Loss. Stock. Balance. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ P ro p erty U~nsold. D4r. Cr UDr. Cr. Dr-. Cr. Resources. Liabilities. Stock -------- 63 ------- 500 00 — ---- ------------- - - 50000 Cash ------- 63 1550 00 99700 —---— 55300 Store Expense 63 25 00 25 00 Merchandise_ 64 1852 00 I975 00 122 00 — 245 00 ---- ---- ---- ---- 122 00 Win.Watson 64- 840 00 —840 00 Geo. Williams 64 375 00 —-- - - 375 00 Wm. Simpson- 64 440 00 240 00 - 200 00 Bills Rec. 65 310 00 - -- 3 00 4552 00 4552 00 122 00 I To Stock for Net Cain ------------------ 220 00 ---- - -- - - 220 00 245 00 245 00 To Balance for Net capital -------------------------------- 720 00 ---- ---- -- - --- ---- 720 00 720 00 720 00 i56o 00. 156o 00 Balanzce Skeet Explaied. 67 EXPLANATION OF THE BALANCE SHEET. First rule the border as shown for No. I, and then rule the head lines, after which rule five more lines than you have accounts, for Stock, or seven, for two partners. The inventory should be entered in red ihk, and transferred to the debit of Balance in black ink. The Balance Sheet shows the same results as the Balance and Profit and Loss Accounts in the Ledger, viz: the Gains and Losses, and Resources and Liabilities. When there are many Personal Accounts unbalanced, the amounts are grouped in this way: All due the firm are Resources, and appear under " Personal Accounts due us;" and all that the firm owe are liabilities. which appear under a Personal Accounts that we owe." A Balance Sheet should be made out when the books are closed. The student should make out a Balance Sheet for sets 2, 3 and 4. He can refer to the Balance and Profit and Loss Accounts in his Ledger for the correct balances. REVIEW OF THE LEDGER. What does the Stock Account represent? What does the Profit and Loss Account represent? What does the Debit of the Profit and Loss Account show? What does the Credit of the Profit and Loss Account show? What does the Debit of the Balance Account show? What does the Credit of the Balance Account show? What does the Debit of the Cash Account show? What does the Credit of the Cash Account show? What does the Balance of the Cash Account show? What does the Debit of the Bills Receivable Account show? What does the Credit of the Bills Receivable Account show? What does the Balance of the Bills Receivable Account show? What does the Debit of the Bills Payable Account show? 68 Review of Ledger. What does the Credit of the Bills Payable Account show? What does the Balance of the Bills Payable Account show? What does the Debit of a Personal Account show? What does the Credit of a Personal Account show? What does the Balance of a Personal Account show? What does the Debit of the Mdse. Account show? What does the Credit of the Mdse. Account show? What does the Inventory of the Mdse. Account show? After the Inventory is added to the Credit side of the Mdse. Account what does the Balance between the Debit and the Credit show? Where is the Balance of Cash transferred, and why? Where is the Balance of the Bills Receivable Account transferred, and why? Where is the Balance of the Bills Payable Account transferred, and why? Can the Credit of the Cash Account be the largest? Tell why. Into what Account do you close all Personal Acco.unts? Interest closes into what Account, and why? Premium closes into what Account, and why? All Expense Accounts close into what Account, and why? Shipment Accounts close into what Account, and why? Give a list of all the Accounts that you can mention that close into Balance. Give a list of all the Accounts that you can mention that close into Profit and Loss. How often should Books, kept for the Retail Business, be closed? How often should books, kept for the Wholesale Business, be closed? What is the First Trial Balance, and what does it show? How often should a First Trial Balance be taken in business? Can you close the Ledger if out of Balance? Day Book. Set 2, No. 2. 69 If your Ledger is out of Balance, what do you do? What is the Second Trial Balance? Wjhat do you do after you obtain the Second Trial Balance? Into what account do you close Stock or the Partners? Where do you find a list of your Resources? Where do you find a list of your Liabilities? Where do you find a list of your Losses? Where do you find a list of your Gains? Where do you find your Net Capital? What does the Net Capital show? If you add your Net Capital to your Liabilities, what will it balance? If you subtract your Liabilities from your Resources, what will the balance show? DAY BOOK. SET 2, NO. 2. CHICAGO, FEB. I. I872. Inventory of my resources on commencing business. Mdse. as per Inventory 2175 00 Cash on hand I650 00 Wm. Marshall owes me on a 145 oo 3970 00 LIABILITIES. Due James Williams on ae 350 00 W. A. Downs on my note 700 00 1050 00 70 Day Book. Set 2, No. 2. CHICAGO, FEB. 3, I872, Sold Simpson & Mathews, I4 hhds. sugar, 8900oo lbs. at 6j II34 00oo 9 " molasses, I020 gals. at 25~ 255 00 I389 oo Recd. in paymt. cash $450 Their note for 312 Ad a( As C 4338 Balance on ale 289 S8. Sold Drew & Hinman, 9 hhds. molasses, I530 gals., at 30 $459 I8 bags coffee, 32oo lbs., at 82 Y272 7 31 oo Recd. in paymt. cash 430 oo Their note at 3o days for bal. 301 00 _ 0. Sold Stewart & Co., 25 bags coffee, 88oo lbs., at 8~ 704 oo Recd. cash 354 oo Jas. Williams' draft on me for 350 oo 12. Bot. of Smith & Rising, 21 hhds. sugar, 25200 lbs., at 6V 1512 00 Paid them cash 450 00oo Simpson & Mathews' note 312 00 My note for 750 00oo'5. Sold Geo. Drew, 9 hhds. sugar, I2600 lbs. at 74 ~ 945 oo Recd. cash 520 00 His note for bal. 425 00 Day Book. No. 2, Set 2. 7I CHICAGO, FEB. 20, 1872. Paid W. A. Downs for my Note for 700 oo 0 My order on Wm. Marshall 125 00 Drew & Hinman's note 301 00oo Cash for balance 274 00 22. Bought of Wm. Marshall, 9 hhds. sugar, o30oo lbs., at 6~, $6 i8 I4 " molasses, I53o gal., at 20' 3o6 924 oo Paid him cash 204 00 My note for 400 00 Bal. on ac 320 00 24. Sold 0. C. Hurd & Co., 4 hhds. sugar, 5150, lbs at 8~ $412 8 hhds. molasses, 5 10 gals., at 3~0, I53 565 00 Recd. in paymt. cash 340 00 Bal. on a/e 225 00 26. Paid Wm. Marshall on aec with my order on Simpson & Mathews for I25 00 28. Sold Geo. Campbell on ac, 5 hhds. sugar, 5150 lbs. at 8~ 4I2 00 Property on hand, Mdse. as per Inventory $960 I.__ _______________________________________________ 72 First Trial Balance. Set 2, No. 2. FIRST TRIAL BALANCE. SET 2, No. 2. FACE OF LEDGER. BALANCES. DR. CR. DR. CR. Stock Io50 00 3970 00 2920 00 Mdse............... 46II oo 4746 oo 135 0oo Cash -------- 3744 00 928 00 2816 00 Wm. Marshall ------ 270 00oo 445 00oo I75 00oo Bills Pay.........- 700 00 1850 00 I I50 00 " Rec. - 1 I376 00 6I3 00 763 00 Simpson & Mathews, 289 oo I25 00 I64 00 O. C. Hurd-& Co..... 225 00 225 00 Geo. Campbell ----- 412 oo00 412 00 12677 I 00 I2677 00 4380 00 4380 00 Net gain for.February, $1095.o00. SET 2, NO. 3. CHICAGO, MARCH I, 1872. Inventory of my resources: Cash in Citizens' Bank 75~ oo on hand 657 00 Mdse. as per Inventory Io073 00 House and Lot on West Adams St. 3500 00 John Smith owes me on his note 420 00 HI. Williams owes me on G/c 250 00 6650 00 LIABILITIES. I owe as follows: J. D. Grant on a/c 450 oo Wm. Marshall on ale 36o oo John Jones on my note $I20 Snow & Johnson on my note 320 440 00oo 1250 00! 2. _ _ __2. Sold Riale Brothers, 20 bbis. sugar, 6000 lbs. at 6j $360 30 " molasses, I230 galls., at 30o 369 729 oo00 Recd. in paymt., cash 279 oo J. D. Grant's order on me for 450 oo 1~;~~~~~~~~~ ~~~ ~ ~d;~~~45 0 Day Book. Set 2, No. 3. 73 CHICAGO, MARCH 5, I872. Bot. of Snow & Johnson, 60 bags of coffee, 9600 lbs. at. 7~ 8$720 15 chests tea, 600 lbs., at 45V 270 990 00 Paid them cash 220 00o John Smith's note 420 00 Bal. on aCe 350 00 I O. Bot. of J. D. Andrus & Co., 82 bbls. pork at $Io 820 00 Paid check on Citizens' Bank 225 00 3000 lbs. sugar at 6~ $I8o 4I0 gals. molasses, 30o 123 303 oo Bal. ona/c 292 00 13. Accepted Snow & Johnson's draft on me for 250 00'5. Sold Joseph Friedman, I025 gals. molasses at 35~ $358.75 2000 lbs. sugar at 8~ i6o.oo 5I8 75 Recd. in paymt. my note 320 00 Cash for balance I 98 75 17. Received John Wheeler's note in exchange for mine, for his accommodation, for 240 00 20. Paid John Jones cash for my note 1i2o 00oo 74 Day Book. Set 2, No. 3. CHICAGO, MARCH 22, I872. Sold Peter Cooper, i6oo lbs. coffee at io0 $i6o 200 "4 tea at 70~ I40 35 bbls. pork at $Io 350 650 00 Recd. in paymt. his note 250 00 Cash 200 00 Bal. on a/S 200 00 23. Paid Wm. Colwell cash for repairs on dwelling house on Adams Street 50 00 24/ Paid cash to Potter Palmer for rent of store room 125 co 25. Sold H. C. Spencer for cash, a bill of Mdse. amounting to 625 00 _____-26.-_____ Paid cash for gas bill for store, 20 25 27~ Paid Wm. Marshall on c, with my draft on H. Williams for 250 00 C(ash 10o 00 360 oo 28. Recd. cash of Wm. Davis for rent of house on W. Adams St. 50 00 29~ Sold Benton & Cord on their note 200 lbs. tea at 70 I40 00oo 3200 " coffee at Ino 320 00 460 0o Auxiliary Books. 75 CHICAGO, MARCH 29, I872. Property on hand. Mdse. as per Inventory 460 oo Real Estate 3500 00 3960 oo The student should carry out the balances as shown for No. i, in Set 2. Only the Ledger footings are given in this work. FIRST TRIAL BALANCE FOR MARCH. Stock I 250 00 6650 oo Citizens' Bank- 750 oo 225 00 Cash - _ - 2009 75 645 25.Mdse. 2883 oo00 3285 75 Real Estate -------- --—. 3500 00 50 00 Bills Rec.- 1370 00 420 00 " Pay. 1 440 00 930 00 Snow & Johnson - 250 00 350 oo J. D. Andrews ----------- 292 00 Peter Cooper.-.. —---- 200 00 Expense ----- ----------- I 95 25 12848 00 12848 00 Net gain, $7I7.50. AUXILIARY BOOKS. We will now introduce the student to the principal Auxiliary Books used in Book-keeping., The book most in use, and one that should be kept in every branch of business, is the Cash Book. The Cash Book should be used expressly for a history of the Cash transactions. The form will be given and explained hereafter. THE SALES BOOK. In this book we keep a record of the Sales of the Mdse., and it is used in Wholesaling and Jobbing. In Retailing, a history of the Sales is usually made iin the Day Book, or Journal. 76 Auzxiliiary Books. THE INVOICE BOOK. In this book is written a copy of the bills of Mdse. purchased. In retailing however, the bills are usually placed on file, or pasted in some old account book, kept for that purpose. THE BILL BOOK. This book is used to keep a record or history of the Notes received and issued. THE CHECK BOOK is used for drawing or checking money out of the Bank, and where no Bank Account is kept, a record of the Checks and Deposits can be kept on the vouchers, taking a balance whenever a deposit is made, or a check drawn. No. I, Set 3 gives the first practical form for Wholesaling and Jobbing, and consists of a Bill Book, Invoice Book, Sales Book, Journal, and Ledger. No Day Book is kept, but a history given in the Journal and Auxiliary Books. The same form would be practical for Retailing, by keeping a history in the Journal, and dispense with the Sales and Invoice Books. Many of the best accountants dispense with the Day Book entirely. The Day Book given in Nos. I, 2, and 3, is not a practical form for business, but is arranged for practice for the student. By writing the Day Book, the student acquires the correct method of giving a history of the business, and he will acquire the Practical Forms in Sets 3 and 4. The following memoranda will be explained, and the student should write up all the books belonging to this Set, post the Journal and Cash Book to the Ledger, close, and make out a Balance Sheet. MEMORANDA FOR SET 3, No. I. CHICAGO, APRIL I, I872. I commenced this day in theWholesale and Jobbing Grocery Business, with a Cash Capital of I5000 00 The above entry should be made on the Debit side of the Cash Book as shown in the Cash Book for this Set. Memoranda for Set 3, No. i. 77 CHICAGO, APRIL 2, I872. Bot. of Stewart & Son, on ca at io ds. 25 hhds. sugar, 27500 lbs., at 8V 2200 00 25 " molasses, i675 gals., at 25~ 418 75 2618 75 Enter the above in the Invoice Book, and Journalize the entry in the Journal. 3. Sold Howard & Co., for Cash, 2 hhds. sugar, 2200 lbs., at 9 98 oo00 4 " molasses, 252 gals., at 28~ 70 56 268 56 Enter the above entry in the Sales Book and Cash Book. 4. Paid Cash for Rent of Store Room one month 150 00 Enter on the Credit side of the Cash Book, as entered in the C. B. for this set. 5. Sold B. F. Carpenter, on a/c, 5 hhds. sugar, 5500 lbs., al 5s y 302 50 3 " molasses, i89 gals. at 30 56 70 359 20 Enter in the Sales Book, and Journalize the entry in the Journal. 6. Bot. of Chas. Owens, 50 sacks coffee, 75 lbs, each, at 20o 750 oo Paid him cash 375 00 My note at io days for 250 00 Bal. on a1c I25 00 Make entries in the Invoice Book, Bill Book, Cash Book, and Journal. As we wish to post the Cash Book to the Ledger, we Debit Chas. Owens in the Cash Book, and Credit him in the Journal for the same amount. 78 Memoranda for Set 3, No. i. CHICAGO, APRIIL 6, I872. Sold W. A. Drew on his note at Io ds., i hhds. sugar, IIooo lbs., at 95 990 oo Make entries in the Journal and Bill Book and Sales Book. o0. I have drawn a draft on B. F. Carpenter at 20 ds. sight, for the balance due me on alc, which he has accepted this day, for 359 20 Make entries in the Journal and Bill Book. I2. Sold Hart, Jones & Co., 30 sacks coffee, 2249 lbs., at 25 562 25 Recd. in payment, cash 200 00 Their Note at ten days, 362 25 Enter in the Sales Book, Cash Book and Bill Book, and Journalize the entry. When we Journalize the above entry, we Debit Hart, Jones & Co. in the Journal, for the amount of Cash received,and Debit Cash and Credit Hart, Jones & Co. in the Cash Book for the same amount. The student should bear in mind that when he receives or pays Cash as part payment, he Debits the party he receives Cash from, or Credits the party he pays Cash to, in making the Journal entry, and reverses the same in the Cash Book, that is, Debit in the Cash Book the party credited in the Journal, and Credit in the Cash Book the party debited in the Journal for the same amount. By so doing, the correct balances of the Cash and Personal Accounts are obtained in the Ledger. This is the only practical form if we post the Cash Book to the Ledger. This form is adopted by our best accountants. _ 6. Recd. of W. A. Drew, cash for his note, Face of note 990 oo Interest on same 2 75 992 75 Enter in the Cash Book on the Debit side, To Bills Rec., Note No. I, and To Interest, making two entries in the Cash Book. Memoranda. for Set 3, No. I. 79 CHICAGO, APRIL I7, I872. Discounted F. B. Carpenter's acceptance in the City National Bank, at i% discount. Face of draft 359 20 Discount off 3 59 Recd. cash 355 6 Enter on the Debit side of the Cash Book, To Bills Rec., Note No. 2, and on the Credit side of the Cash Book, By Discount on Bills Rec. No. 2. Bot. of Chapin & Jones, New York, 25 chests Young Hyson tea, 2000 lbs., at 65 1300 00 50 chests green tea, 4000 lbs., at 750 3000 00 4300 oo00 Paid them my note at 20 ds. for $3500 Cash 8oo Enter in the Invoice Book, Bill Book, Cash Book, and Journal. 22. Sold Riale Bros., for cash, Iooo lbs.Young Hyson tea, at 7 700 00 2000" green tea, " 85" I700 00 2400 00 Enter in the Sales Book, and on the Dr. side of the Cash Book. 24. Sold Field, Leiter & Co., 2000 lbs. green tea, at 85 1700 00 Recd. cash, 1000 00 Their draft on C. Davis, at Io.ds. 500 00 Bal. on ac 200 00 Enter in the Cash Book, Bill Book, Sales Book, and Journal. 80o Journal. Set 3, No. r. CHICAGO, APRIL 26, I872. Discounted my note in favor of Chapin & Jones for 3500 00oo At I~o discount. Paid cash 3465 oo Discount off 35 00 Enter on the Credit side of the Cash Book, By Bills Pay., Note No. 2; and on the Debit 3500 00oo side of the Cash Book, To Discount on Bills Pay., No. 2. 35 oo 27. Sold John Jones, on ace, 5 hhds. sugar, 5500 lbs., at 9g 495 oo Make entries in the Sales Book and Journal. 29. Sold Harvey Day, on ac, 3 hhds. sugar, 3300 lbs., at 9g 297 oo Make entries in the Journal and Sales Book. 0. Sold Riale Brothers, on alc, Io hhds. molasses, 630 gals., at 30o 189 00 Enter in the Sales Book and Journal. Mdse. on hand, as per Inventory, oI 00oo Required Net Gain or Loss, and Net Capital. JOURNAL. SET 3, No. I. CHICAGO, APRIL 2, I872. Mdlse. 2618 75 To Stewart & Son 26i8 75 5. B. F. Carpenter 359 20 To Mdse. 359 20 Journal. Set 3, No I. 8I CHICAGO, APRIL 6, I872. 6. Mdse.. 750 oo To Bills Pay. 250 00 " Chas Owens 500 00 6. Bills Rec. 990 00 To Mdse. 990 00 0O. Bills Rec. 359 20 To B. F. Carpenter 359 20 12. Hart, Jones & Co. 200 00 Bills Rec. 362 25 To Mdse. 562 25 S 8. Mdse. To Chapin & Jones 4300 oo "Bills Pay. 8o00 oo.3500 00 Field, Leiter & Co. 1200 00 Bills Rec. 500 00 To Mdse. 1700 00 2,7. John Jones 495 oo To Mdse. 495 00 29~ Harvey Day 297 00 To Mdse. 297 00 30. Riale Bros. 189 00 To NM dse.i 189 oo 82 Cashi and )Dr. CASH. 1872. April I To Stock, amount invested in business —- 1/ I5,oo000 oo 3 " Mdse., sold Howard & Co. ----- - - - - j 268 56 I2 Hart, Jones & Co., on a/c of Mdse. —-- / 20000 I6 Bills Rec. Note No. I_ -___-__./ — 990 00 Interest on " _ 1/ 2 75 I7 " Bills Rec. Note No. 2.-........../ 359120 22 Mdse., sold Riale Bros.,. / 2,400 00 24 Field, Leiter & Co., on acY of Mdse - - - 1 I,000 00 126 Discount on Bills Pay. No. 2,- - - 35 00 20,255.51. _________________ _ I1 20,25,251 May I To balance brought down.......5,426 92 BILLS. WHEN DRAWER WHEN D No. IN FAVOR OF ACcEPOR DATED. TIME. REC'D. OR ACCEPTOR. ~April 6 I Myself. W. A. Drew. April 6 Io Days. " Io 2 it B. F. Carpenter. 0 IO 20 " 12 3 " Hart, Jones &,Co. 12 I " 24 4 C. B. Davis. 24 IO "0 BILLS. WHEN DRAWER OR No. IN FAVOR OF DATED. TIME. PAYABLE AT GIVEN. ACCEPTOR. April 6 I Myself. Chas. Owens. April 6 Io Days. Ist Nat. Bank " 8 2 " Chapin & Jones " 8 20 "New York. 83 Bill Books. 83 CASH. Cr. April 4 By Store Expense, for rent of store- -- -- 4/ I50 00, 6 " Chas. Owenson al/ of Mdse. —-------- 4/ 375100 I7 " Discount on Bills Rec. No. 2 ------- 4/ 3159 IS "Chapin & Jones on a/c of Mdse.. —----- 8oo00100 26 "BillsPay. Note No. 2 ----------— 4/ 3,500o00 4,82859 30 " Balance on hand-. I15,426192 20,255 51 RECEIVABLE. WHEN DUE. Year. t c' Amount. Remarks. ~~~~, Z ~ 0 tZ c7 1872 i6 990 00 Received Cash. it" 30 359 20 Rec. Cash less dis't. it 22 362 25 4 500 00oo PAYABLE. WHEN DUE. Year. F-d 0 0 Amount. Remarks. I~ I I~1[1 [ L ~: ~ 1872. i6 250 00 "11~8 3500 oo Paid cash less disc't. 84 Izvoice Book. Having posted the Journal, the student should post the Cash Book to the Ledger. The Debit of Cash, or the amount, can be posted to the Debit of the Cash Account in the Ledger, making the entry, " To Sunds.," thus debiting cash for the total amount. Then post the credits found on the Dr. of the Cash Book to balance this amount, commencing with Stock, and check each entry in the Cash Book when it is posted. Proceed with the Credit of Cash in the same way. When the same account occurs more than once, the amount can be posted. The Cash Book should be closed when posted, to avoid errors. The balance of the cash on hand should be brought down on the Dr. of the Cash Account, " To balance brought down," and the amount carried to the second column. INVOICE BOOK. The student should have separate books for the Invoice and Sales Books, and enter all Merchandise bought in the Invoice Book, and all Merchandise sold in the Sales Book. CHICAGO, APRIL 2, 1872. Stewart & Son, on as/, at Io ds., 25 hhds. sugar, 27,500 lbs., at 8~ 2200 00 I675 gals. molasses, at 25~ 418 75 2618 75 6. Chas. Owens, note, cash and on aIc, 50 sacks coffee, 3750 lbs., at 20~ 750~ oo00 ZS. Chapin & Jones, note and cash, 25 chests Young Hyson tea, 2000 lbs., at 65 1300 00 5o chests green tea, 4000 lbs.,at 75~ 3000 00 4300 00 Sales Book. 85 SALES BOOK. CHICAGO, APRIL 3, I872. Howard & Co., for cash, 2 hhds. sugar, 2200 lbs., at 9~. i98 00oo 4 " molasses, 252 gals. at 28q 70 56 268 56 5B. F. Carpenter, on alc, 5 hhds. sugar, 5500 lbs., at 5 2q 302 50 3 " molasses, i89 gals., at 30~ 56 70 359 20 6. W. A. Drew, on note, II hhds. sugar, TI,ooo lbs., at 9/ 990 12. Hart, Jones & Co., for cash and note,.30 sacks coffee, 2249 lbs., at 250 562 25 22. Riale Bros., for cash, Iooo lbs.Young Hyson tea, at 70o 700 oo oo 2000 " green tea, at 85 1700 00 2400 00 25. Field, Leiter & Co., cash, draft and on acct. at 3o ds., 2000 lbs. green tea, at 85 1700 00 27. John Jones, on alc, 5 hhds. sugar, 5500 lbs., at 9 495 00 86 Sales Book. CHICAGO, APRIL 29, 1872. Harvey Day, on ac, 3 hhds. sugar, 33oo lbs., at 9 1 297 00 30. Riale Bros., on a/c, io hhds. molasses, 630 gals., at 3 189 00oo LEDGER. No. I, SET 3. Dr.- STOCK. Cr. Apr. 30 To Bal. 90 15577 42 Apr. 30 By Cash 82 15oo00000.... "Profit & Loss go 577 4 ____ =I1557742 t 145577 42 )Dr. CASH. Cr. Apr. 30 To Sunds. 82 20255 5I Apr. 41 By Sunds. 83 4828j 30 Balance go9 15426 92 20255 51 May I To Balance 15426 92 _ ~._... _ _ _ __ _ __ _ Ledger. Nlo. I, Set 3. 87 No, i, SET 3. Dr. MERCHANDISE. Cr. Apr. 2 To Stewart& Sons 80 26I8 75 Apr. 5 By B.F.Carpenter 80 359 20 6 " Sundries 8I 750 00 6 " Bills Rec. 8I 99o 00. 8 I8 "(. 8I 4300 00. 1I2 " Sundries 8I 562 25 30j " Profit Loss 9 693 26 24 "Sundries 8I 1I0000 u 27 " John Jones 8I 495 00 29 " Harvey Day 8I 297 00 30 " Riale Bros. 8i 189 00 3 " Cash 82 268 56 22 " " 82 2400 00 30 " Balz vt. 9 I IOI 00 8362 01 8362 OI May To Balance Invt. IIOI 00 I)r. STEWART & SONS. Cr. Apr. 30o To Balance 90 1126I8 75 |Apr. 2 By Mdse. 8~ 26I875 _ I _l y' _11 1_I.'_ May i By Balance 2618 75 Dr. B. F. CARPENTER. Cr. Apr. 5 To Mdse. 80 359 20 Apr. io By Bills Rec. 8I 359 20' Dr. BILLS RECEIVABLE. Cr. Apr. 6 To Mdse. 8I8 ggo9oo Apr. i6 By Cash 82 990 0o | " Io " B.F.Carpenter 81 359 20 I7 " 82 3591201 12 " Mdse. SI 362 25 30 " Balanzce go 862125, 24 " " Si1 50000 2211 45 B2211 45 May I To Balance 862 25 1~~ ~ ~ * 2 _~ _ -2II4 88 Ledger. INo. z, Set 3. Dr. BILLS PAYABLE. Cr. Apr. 26 To Cash 83 3500 oo00 Apr. 6 By Mdse. 8 250 00 Apr. 3o " Balance 90 25000 iL 8 SC i 8I 3500 00 3750 00 3750 00 Dr. CHAS. OWENS. Cr Apr. 6 To Cash 83 375 o00 Apr. 6 By Mdse. 8S 500 00 3o "Balance 90o 25 00.... — - -=| = May I By Balance 125 00 Dr. HART, JONES & CO. Cr. Apr. I2 To Mdse. 8I 200 00 ooApr. 12 By Cash 82 200 00 Dr. FIELD, LEITER & CO. Cr. Apr. 24 To Mdse. 8i I200|00 Apr. 24 By Cash 182 100000 30L Balance 90 200 00;"30" To Bal./ 200 00 Dr. JOHN JONES. Cr. Apr. 27 To Mdse. 8i 4950 | Apr. 30 By Balanc 90 495 00 May i To Balance - 495 00 Ledger. No. I, Set 3. 89 Dr. HARVEY DAY. Cr. Apr. 29 To Mdse. 8 r 297 400 Apr. 30 B1y Balance 90 297 oo May To Balance 297 0oo 1 -- _Dr. STORE EXPENSE. Cr. Apr, 4 To Cash 83 5000 Apr. 30 By Profit Lsso Dr. RIALE BROTHERS. Cr. Apr. 30 To Mdse. 8i i8900oo Apr. 30 By Balance o I89 00 May i To Balance I89 00')Dr. CHAPIN & JONES. Cr. _ _ _ ___ _ _ _ I I - _ _ Apr. i8 To Cash 83 8oo Apr. i By Mdse. 8 800oo 00 Dr. DISCOUNT. Cr. Apr. 17 To Cash 83 3 59 Apr.26 By Cash 82 3500 30 Profit L' Loss 90 3I 43 35 00_ 3500oo Dr. INTEREST. Cr. Apr.3o To Profit &Loss 9g 2 75 Apr. r6 By Cash 82 275 go90 Ledger. N!o. I, Set 3. Dr. PROFIT AND LOSS. Cr. Apr. 3oToStoreExpense 89 150 oO IApr. 30o By Mdse. 87 693 26 Stock 86 577 42 " Discount 89 3 41 _" Interest 89 2 75 727 42 727 42 Dr. BALANCE. Cr. Apr. 30 To Mdse. Invt. 87 iio0 oo Apr. 30 ByStewart'&Sons 87 26I8 751 e Cash 86 I5426 92 em " Bills Pay 88 250 00 Ai." Bills Rec. 87 862 25 Chas. Owens 88 I25 00 " Field, Leiter Stock 86 I5577 42 & Co. 88 200 00oo " ohn Jones 88 495 00 " Harvey Day 89 297 o00 " Riale Bros. 89 189oo 400 I8571 z7 -- I'157I 17 STUDENT. May I By Net Capital 1 I5577 j 42 SET 4, No. I. The student is supposed to continue in business, in this set, with the Resources and Liabilities in the Balance Account'f Set 3, but admits John Smith as a partner, with a cash capital equal to the Student's Net Capital, amounting to $I5,577.42. As the Debit of Balance exhibits a list of the Resources, andl Credit a list of the Liabilities, you can open your books by.n'ng the entry in the Journal, " Sunds. to Stock," giving Stock. Crddit for the total amount, and debit each item found in the lit of'the Resources. Books Re-ohened. 9' HOW TO RE-OPEN A SET OF BOOKS. The most practical method to re-open a Set of Books, is to bring down the Balances, showing Resources and Liabilities, either under the old accounts where there is room, or open new accounts where more space is needed. In the Balance Account on page go, is found a list of the Resources and Liabilities on closing the Books the last of April. The Net Capital as shown in the Stock Balance on the Credit of the Balance Account, is $15,577.42. The Student is now to form a Copartnership with John Smith, who is to invest a Cash Capital equal to the Net Capital of the Student, which is shown above to be $15,577.42, and to share equally in Gains and Losses during the following month of May. The name of the new firm is now the Student's name and Smith. First bring down the Cash Balance found in the Cash Book, page 83, to the Debit side of the Cash Book, and make the entry in black ink, May I, to Balance $I5,426,92, writing the figures in the first column. Next make the entry on the Debit side of the Cash Book to John Smith, $15,577.42. Next open an account in the Ledger with the Student, also separate accounts with John Smith, Mdse., Bills Rec., Field, Leiter & Co., John Jones, Harvey Day, Riale Bros., Stewart & Sons, Bills Pay. and Chas. Owens. Debit each of the accounts found on the Debit of Balance on page go, to Balance for the amount of the Balance given in the Balance Account. Hereafter open no account with Cash in the Ledger, but bring the Cash Balance down in the Cash Book whenever the Cash Book is closed and re-opened. The Student should understand that the Cash Book constitutes the samething as a Cash Account in the Ledger when posted. The new accounts opened in the Ledger which are transferred from the Credit of the Balance Account, should be Credited by Balance for the amount of each of the Balances shown in the Balance account on page go. As no Stock Account is kept in Partnership, transfer the Stock Balance to the Credit of the Student's account. Close the Cash Book and bring the Cash Balance on the Debit of the Cash Account when a First Trial Balance is taken, also carry the same Balance to the Debit of the Balance Account when the Ledger is closed. The Student should now write up a Journal, and Cash Book, Sales, Invoice and Bill Books for the month of May, using the same forms, and follow the same rules as given for W\holesaling in April. 92 Mezuoranda for Set 4, No. I. MEMORANDA OF BUSINESS. SET 4, No. I. CHICAGO, MAY 2, 1873. Bot. of Austin & Gibbs, N. Y., on alc, ioo boxes raisins, at $3 300 oo00 500 o" oranges, at $2.75 I375 00 1675 00 3. Bot. of Robt. Haywood, at io ds., io hhds. sugar, II,ooo lbs., at 9 99 oo00 io sacks coffee, 750 lbs., at 20 150 00 1140 00 Sold Geo. Whitney, on cc at I o ds., 50o boxes raisins, at $3.50 I75 00 I00 cc oranges, at$3.25 325 oo00 500 00 In business, goods are usually sold on 30, 60 or go days. We have made the time Io days, because we could arrange the entries more satisfactorily. 5. Bot. of R. C. Spencer, on our note at IO ds., 500 boxes lemons, at $3 I500 00 Io hhds. sugar, II,ooo lbs., at 8 1 880 00 I 2380 oo00 6. i Accepted Austin & Gibbs' draft on us at 2 ds. for I675 00 Paicshb 8. 67 Paid cash to Robt. Haywood on Gc ggo90 00 Memnoralzda. Set 4, No. I. 93 CHICAGO, MAY 9, I872. Paid cash for our acceptance,Austin & Gibbs' favor I675 00 SIipedto Geo. Hoffman, Buffalo, N. Y., -' to be sold on joint a/c each?, 2oo boxes oranges, at $2.75 $550 5 hhds. sugar,5500 lbs., at 8~ 440 I00 boxes lemons, at $3 300 I290 00 Geo. Hoffman's ~2 invoice is 645 00 Shipt. to Buffalo, Co. A 645 -)o Enter in the Journal, Sunds. to Mdse., and give Mdse. credit for the full amount of the shipment I290 00oo Debit Geo. Hoffman for half of the invoice, $645, as he buys half interest on acct. Debit shipt. to Buffalo, Co. A, for the amount of your half shipt., $645. Sold L. Friend, 5 sacks coffee, 375 lbs., at 22 82 50 Io hhds. sugar, IIoo lbs., at 9~ 990 oo I072 50 Recd. in paymt., Sight draft on N. French for $5 oo Cash 400 Bal. on 172.50 I. 6 I Bot. of Durand & Co., io hhds. molasses, 640 gals., at 80o~ 512 00 2o bbls. A sugar, 5700 lbs., at 9g,5 541 50 io chests Y. H. tea, 450 lbs., at $I 45~ 00 Io bags Rio coffee, 840 lbs., at 20o 168 oo I67 I 50 Paid our note at io ds. for $i,ooo.oo Cash for bal. 671.5o 13. Paid cash for rent of Store 150 00 Gas bill for Store 20 00 I70 00..._ _ _ _ _ _ _ _ _ _ _ _ 94 Memorazda. Set, No. I. CHICAGO, MAY I4, I872. Geo. Whitney having become insolvent, we have accepted 25 % of the amount he owes us, on %, and lose the balance. Recd. cash I25 00 Lose 375 00 500 oo 00 The above entry should be made in the Cash Book on the Debit side To Geo. Whitney, for 500 oo And on the Credit side, By Profit and Loss on Geo. Whitney's acct., $375.00.'5. The Student drew cash from the firm for private use 125 00 John Smith drew cash for private use, amounting to I50 00 Sold J. W. Jackson, on a/c, 200 boxes lemon, at $3.50 700 00 5 bags coffee, 400 lbs., at 23~ 92 00 792 00 17. Sold Joseph Friedman, 8 hhds. molasses, 5i0 gals., at o 459 oo00 ioo boxes lemons, at $3.50 350 00 50 t" oranges, " 3.00 I50 00 959 00 Recd. cash $400 Geo. Davis' note at Io ds. 380 Bal. on /7c I79 959 00 19~ Paid cash for safe for Store 500 00 Credit Cash in Cash Book, and debit Store Fixtures. M/emora da. Set 4/, lVo. 95 CHICAGO, MAY 20, I872. Bot. of Wm. Lyman, 2000 bbls. salt, at $3 6ooo 00 Paid cash 4000 00oo Bal. on 2000oo 00 ___ 21. Sold H. M. Newell, on note at 8 ds., Io chests Young Hyson tea, 450 lbs., at $I.Io 495 oo 500 bbls. salt, at $3.25 1625 00 2I~" O4 22. The thieves broke into our Store last night, and carried off Mdse. valued at 600o oo Sold S. J. Kline, for cash, iooo bbls. salt, at $3. I0 3100 00 23. Paid Emanuel Friedman cash for services in the store 50 oo00 24. The thieves that broke open our Store have been arrested, and Mdse. recovered amounting to 500 co Paid Detective Simons, for arresting the thieves and recovery of goods, a reward of |5o 00 90~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~, I5 96 Memoratda. Set 4i,No. I. CHICAGO, MAY 25, I872. Bot. of J. W. Doane & Co., oo00 bags Java coffee, 8500 lbs., at 2I~ 1785 oo 200 boxes raisins, at $2.75 550 00 2335 00 Paid them cash $I000ooo Our draft on J. W. Jackson 700 Our note for 3o ds. 300 Bal. on ale 335 2335 00 The Student drew cash from the firm for private use 125 00 John Smith drew cash from the firm amounting to I5o 00 27. Shipped to C. W. Downs & Co., New York, to be sold on our acct. and risk,:,oo boxes raisins, at $3 6o00 (6o bags coffee, 5000 lbs., at 2I I050 00 5o boxes oranges, at $2.75 1I37 50 I787 50 Paid cash for drayage I 2 50 Debit Shipt. to N. Y. for $I8oo. Recd. cash of L. Friend in full on al I 172 50 _ _ _ _ 2 8. Paid Durand & Co., cash for our note, No. ~, in their favor, for I00 00 Interest on the same for 20 ds. at io5o per annum 5 56 I005 56 Paid Wm. Lyman cash on ICI0Q00 00 l~~~~~~~~io lo Memoranda. Set 4, No. I. 97 CHICAGO, MAY 28, I872. Bot. of D. Cole & Sons, House and lot, No. 44I W. Washington Street, Chicago, for 20000 00 Paid them cash 8000 00 Bal. in notes at I, 2 and 3 years, at 81o per annum, for 1 2000 00 29~ Recd. cash of H. M. Newell, for his note, our favor, for 2120 00 Interest on same for 8 ds. at i o% per annum 4 71 2124 7I Recd. cash of Geo. Hoffman, on alc 645 00oo " for net proceeds of 00oo Shipt. to Buffalo Co. A. cash. 750 00 1395 oo 30. Sold A. P. Andrews, Io bbls. A sugar, 2850 lbs., at Io0 1 285 oo 2 hhds. molasses, I30 gals., at $I 130 00 Ioo boxes lemons, at $3.50 350 00 500 bbls. salt, at $3.25 625 00oo 2390 00 Recd. in paymt., our note, R. C. Spencer's favor $2380 Cash for balance Io 2390 00 3I. Paid H. Barbier cash for repairs on house on Washington Street 250 00 Debit Real Estate. Property on hand: Mdse. as per inventory 3246 25 Real Estate 20250 00 Shipt. to N. Y. i8oo oo Store fixtures 5oo 00 G THE JDENT AND JOHN SYH'S BALANCE SHEET FOR MAY. 0 K ~ ~ ~ ~ ~~~ ~~~~LEDGER'BALS. PO'V PROFIT & LO-SS STUDENT. JOHN SMITH. BALANCE. Dr. r UO:Dr. Cr. Dr. Cr. Dr. C Res'rc L'ie Student -..................... 15327 4 ------ -- ------ -- I5327 42 John Smith — 27-2-.-...... —- --- -- 15277 4 -5277 42 - Cash -— 70 —-- 99 ------ _-99 Mbdse - - 2I9I 50-3246 25 -.- I054 75 — --- -3246 25 Stewart &Sons- - 2261875.. --- Bills Receivable-2742 25- - - — 742 25 Bills Payable ------- -— 2 —-- 2550 oo 2 —-- ---- ---- ---- ---- ---- 2550 00 Chas Owens ------------------ -" -- -1!-2 o! Field, Leiter & Co. —---------- 200 00...- - - - -20000 John Jones -.......495........ — -- /9 00 o Harvey Day ------------------ I —t! 495 oo Hva29700 —-— 29700 Riale Bros..-..8oo. —---- 2890 Robert Haywood 25000........5000 Ship. to Buffalo, Co. A 205.o-.. -- 20 0 Store Expense- - 370 00i- - 370 00 Store Fixtures —oo - 50000 —- -- -.....500.00 J. W. Jackson -..........92.00 - 9200 Jos. Friedman 0................ 179 - 179 00 W i n. Lym an -------- -------- ----- -- 0 0 0 -- - - - -- - - - - - -- - - - -- - - - -- - 0 0 J. W. D oane & Co ------------ I -- - -", -- - - -- - -- - - Shipped to N. Y.. Co. A... —-- oo..- i8oooo —8ooo Interest.........._-.............. Real Estate-......... -. R- 20250~001 202'90002025000 Profit and Loss --— 00-...47500 47488 59 47488 59 25796.25 To Sludentfor one-half/ Net Gain —,- - -5695-I6 95' To Yohn Smzitlkfor one-half Net Gain — -6 95.-...........6 95 ~~~~~~~~~~~~~~~~~~~~~~~~~I-4 1159 75 1159 75 To balance for- Student's Net Cahlal,-2544-7-248-3 J)ohn Smith's Net Ca....lal —-—....... —-.5434 7 —-5434 37 -- 5484 37 25484 37 15434 37 25434 37~ 47697 49 47697 49 f.orms JO7i r Reta-izi'g. 99 FORMS FOR RETAILING. SET 5. No. I. This set teaches the practical forms for retailing, and will be found convenient for many branches of business. No Day Book is kept. Where goods are bought or sold for cash, the entry is made in the Cash Book. If they are bought or sold on account, the history is given in the Journal. Keep a Journal, Bill Book, Cash Book, and Ledger. A petty Cash Book is sometimes kept, which is really a memoranda of the cash received and paid out, which should be transferred to the general Cash Book. Sometimes the business requires a number of auxiliary books, depending upon the nature and kind of business. A Letter Book is used, if you wish to preserve a copy of your letters. An Order Book is frequently kept as a memorandum for purchases. A blank Pass Book, and a Check Book should be kept if you make deposits in the bank. It will be necessary for the accountant to exercise good judgment in selecting the forms, and the kind of books his business requires. Accountants vary in selecting the forms, and the manner of keeping the accounts, yet the same results should be obtained, and will be, if the books are correctly kept. The most convenient method of keeping the Mdse. Account is to enter each day on the debit of the Cash Book, "To Mdse. Sales," for the day, for the total amount of cash received for Mdse. on the day the entry is made. If Cash is received or paid on account, the entry should be made in the Cash Book. Every entry made in the Cash Book should be Journalized when the entry is made, as the Cash Book is not only Used to keep an account with Cash, but it is used to express Journal entries, and a history of the cash transactions, and can be posted directly from this book to the Ledger, not forgetting to check in the Cash Book every entry posted. This book should not be posted until it is closed, but the accountant should find the balance of the Cash Book every day, which should agree with the amount on hand. This can be done by footing the debit and credit of the Cash Account, on waste paper If the Cash Book is closed, bring the balance to the debit side, in the second column, using the first column for cash received, and carry o00 Memoranda for Set 5, No. i. the amount to the second column when it is closed or footed. Observe the same rule on the credit side. MEMORANDA. SET 5. No. I. CHICAGO, JUNE I, I872. Commenced business with a cash capital of 5000 00oo The above entry should be made on the debit of the C. B.." To Stock," amount invested. 2. Bot. of J. V. Farwell & Co., Mdse. as per invoice 2700 00oo Paid cash 1500 00 Balance on a/ I 200 00 Make the Journal entry "Mdse. To J. V. Farwell & Co.," for the full amount, and credit cash for the amount paid, in the C. B., "By J. V. Farwell & Co., on a/c of Mdse." 3. Sold for cash Mdse. amounting to 250 o00 Debit cash in the C. B., "To Mdse." sales for the day. 4Sold F. M. Munson on c, 15 yds. French poplin at 75 i1 25 22 4 black silk at $2 44 00oo 2 44 sheeting at r 3 755T Make the following entry in the journal: F. M. Munson, 59 00 To Mdse. sold on ale, 59 00 i5 yds. French poplin at 75c, $11.25 22 " black silk at $2, 44.00 25 " sheeting at 15c, 3.75 $59. lMemorcida for Set 5, No. I.'OI CHICAGO, JUNE 5, I872. Sold Geo. Loring for his note at 30 ds. a bill of Mdse. amounting to 125 00 Make entries in the Bill Book and Journal.._ __ ~6. Received cash for Mdse. sold this day amounting to 375 00. _ _ _ _ 8.. Paid cash for rent of store room 50 00 Received cash for Mdse. 250 00 9. Sold W. Wright on alc, 7 yds. broadcloth at $2.50 I7 50 I silk hat 6 I neck tie 75 24 25 0. Received cash of F. M. Munson on c 25 00 Debit Cash in the C. B., and credit F. M. Munson. Bot. a bill of Mdse. of Hamlin, Hale & Co., I 200 00 Paid my note at ten days for I200 00oo Make entries in the Journal and B. B. Paid cash for groceries i o 102 Memoraznda for Set 5, No. j CHICAGO, JUNE I2, I872. Paid J. V. Farwell & Co. cash on af o o 00 Received cash for Mdse. 230 00 I3. Paid cash to Daniel Roberts for services in the store 25 00 Sold Robert Morris, on al, 3 pairs gents' boots, at $5 15 00 12 pairs gents' cotton socks, at 35 4 20 15 yds. black ribbon, at 50 7 50 26 70'5. Sold Wm. Baxter on ale 50 yds. sheeting, at I5~ 7 50 25 yds prints, at I2~ 3 13 I 63 16. Robt. Jones has discounted his note for 1 25 00 Recd. cash 120 00 Discount on his note 5 0 Debit Cash in the C. B. "To Bills Rec.," I25 00 and credit Cash "1By Discount," 5 00 Recd. cash for Mdse., I75 00'9. Paid J. V. Farwell & Co. cash on al 350 00 Memoradafor Set 5, No. i. 103 CHICAGO, JUNE 20, I872. Received cash of W. Baxter on 5 o00 Robert Morris paid me on ale with Gilbert Harris' note, made June i, 27 yds. French poplin, at 75 20 25 45 "black silk, at$2 g90 00 yds. sheeting, at 5 15 00 I25 25 Bot. of Field, Leiter & Co., Mdse. as per invoice 750 00 Paid~ cash 300 00 My note at six days 450 00 Paid' cash for my note and interest Hamlin, Hale & Co.'s favor, Face of note I200 00 7 Interest 2 00 I202 00 Credit Cash " By Bills Pay." I200 00 By Interest 2 00 23. Sold Win. Watson, on 5 yds. Irish linen, at 750 3 75 12 yds. black cambric', at 200 2 40 6 15 104 Memorazda for Set, Ao. i. CHICAGo, JUNE 23, 1872. Paid J. V. Farwell & Co., on atc, with my draft on Geo. Richardson 75 00oo Journalize the entry. 24. Bot. of Robert Morris, on, 25 lbs. butter for family use, at 2o0 5 00oo Debit "Family Expense," to Robert Morris. 25. Paid Field, Leiter & Co., cash on Ca 250 00 Paid J. V. Farwell & Co., cash on l I75 00 26. Received cash for Mdse. I75 25 28. Paid Field, Leiter & Co., Cash for my note 450 oo00 Interest 75 450 75 Sold John Williams for cash, a bill of Mdse. amounting to 75 75 Debit Cash "To Mdse. sold John Williams." Mdse. on hand, as per inventory 3225 00oo Post the Journal to the Ledger, then close and post the Cash Book. Required, the net gain or loss. i/emoranh/da for JMd/y IO5 MEMORANDA FOR JULY. J. T. Wheeler and M. R. Brown have this day formed a copartnership in a Retail Gents' Furnishing Establishment. They are to invest equal amounts, and share equally in the gains and losses. CHICAGO, JULY I, 1872. J. T. Wheeler invested cash 2500 00 Mdse., as per inventory Iooo 00 Bills Rec., as per B. B. 500 00 4000 00oo,M. R. Brown invested cash 2000 00 Bills Rec. 700 00 Geo. C. Oakley owes him on a/c 300 00 Mdse as per inventory 1000 00 4000 o00 J. T. Wheeler owes J. Lacy on his note, which is assumed by the firm, 5 00 M. R. Brown owes H. Lewis on ac 250 00 Henry Dwight on c 250 00 500 00. ~2. I Sold David Fuller, on a/c, i pair doeskin pants 9 0oo 2 boxes Gray's collars 70 9 70 Sold Mdse., for cash 75 00 4Sold J. Lacy, on a/c, I overcoat 30 00 I vest 9 00 39 oo 5. io6 AlMe or da for ly. CHICAGO, JULY 6, i872. Recd. cash for Mdse. sales i8o oo00 8. _S. Recd. cash for D. Merrill's note 250 00 Interest on the note 25 oo00 275 00 9Bot. of Weber & Harkin, on a/c, Mdse. as per invoice 7 25 75 I10. Paid H. Lewis on a1c, with our draft on Geo. C. Oakley 250 00 Sold John Dunham, on a/c, i wedding suit, per contract 65 0O I 2. Recd. cash of H. Dwight, on a/c 75 00oo 13. Paid cash for 4 tons coal for use of the store 40 oo00'5. Sold J. M. Stevens, on a/e, I neck tie I 25 5 boxes cuffs, at 25 I 25 i pair sleeve buttons 75 3 25 cashof 6. 2 Reed.csho D avid Fuller, on 00e Mfemoranda for 7.y. 107 CHICAGO, JULY I 7, I872. Sold Mdse. for cash i8 oo J. T. Wheeler drew cash 75 00 M. R. Brown " " 75 0oI50 00'9. Sold Wm. E. Bowman, for cash, i frock coat 25 00 I vest 8 oo X pair pants io 00 43 00 20. Recd. cash of J. M. Stevens, on Cc, 3 25 22. Paid Weber & Harkin cash on a 250 00 23. Sold J. W. Raymond, on ag, 5 pairs cotton hose, at 25 i 25 2 linen handkerchiefs, at 40~ 8o i box Gray's collars 35 I cuffs 40 80 24/. Sold Colby Drew, on, i wedding suit, as per contract 1 25 00oo 25. ______Sold James Reed, on a1c, I velvet coat 45 00 isilk neck tie 2 50 47 50 io8 IIemoranda for Retailing. CHICAGO, JULY 26, i872. Colby Drew paid us on al with his draft on the City National Bank I25 00 r28. Paid cash for rent of store, i month 75 00 30. Recd. cash for Mdse. 250 00 Mdse. on hand, as per inventory00 Required net gain or loss, and net capital of each partner. MEMORANDA FOR RETAILING. Inventory of the joint resources of A. Spicer and F. P. Stone, who have this day entered into partnership under the firm title of Spicer & Stone, each to share one-half of the gains or losses. CHICAGO, AUGUST I, I872. A. Spicer invested cash 2500 oo00 F. P. Stone invested cash 2500 00 Paid cash as follows: For rent of store 75 00 " printing cards and bill heads 8 83 00 shelvings, safe, counters, etc. 395 00 395 00 _ _ _ _ _ _ _ 2. _ _ _ _ Bot. of Hamlin, Hale & Co., A bill of~ Mdse. amounting to i8oo 00 Paid them cash 750 00 Our note at 30 ds. for 6oo 00 Bal. on ae5 00 Alemoranda for Retailizg. log CHICAGO, AUGUST 3, i872. Bot. of Field, Leiter & Co., A bill of Mdse. amounting to II46 00 Paid our note at 30 ds. for II46 00 5. Recd. cash for Mdse. sold this day 38 oo 6. Sold L. McAndrews on a'c, 20 yds. of sheeting, at iif 2 20 10 i Irish poplin," 8o 8 00 TO 20 Paid cash for repairing lock at store I 80 7Sold Mrs. R. Watson, 48 yds. sheeting, at iod 4 8o 3 table cloths, " $1.25 3 75 I5 yds. alpaca, " 6o 9 o00 17 55 Recd. cash 12.00 Bal. on ale 5.55 Recd. cash for Mdse. sales 45 00 9. Sold S. Brown on 0c Ilce shawl 6o 00 Recd.' cash of Mrs. Watson on ac4 00 I IO Memora a'for Retailig. CHICAGO, AUGUST IO, 1872. Bot. of Gage, Mallory & Co., A bill of Mdse. amounting to 198 oo00 Paid our note at 30 ds. amounting to 100 00 Cash for balance 98 oo00 Sold S. Jones on, i doz. spools of thread 72 I papers pins 60 ii yds. black lace, at 80o 8 8o Io 1 2 _ _ _ _ _ _ _ I I. _ _ _ _ Recd. of L. McAndrews on %c, his order on R. Johnson for i 20 ~~~. - ~. Recd. cash for sales of Mdse. 85 00 12.: Sold A. Buckminster, i6 yds. silk,- at $3.50 56 5~ Recd. his sight draft on Hamlin, Hale & Co. for 50 00 Cash for bal. 6 00 A. Spicer drew cash for personal use 30 F. P. Stone " " 35 00 14. Recd. cash for sales of Mdse. I00 00 Paid cash for painting front of store 38 00 AMemorandajfor Retailing. CHICAGO, AUGUST I5, 1872. Sold B. R. Styles, 56 yds. muslin, at io~ 5 6o I doz. hair nets 2 o50 8 o Recd. cash $4.oo Bal. on ale 4.10 Paid cash as follows: For pens and ink $1.4o " window brush 2.00 one pane glass 3.4o 6 8o I 6. Recd. cash for sales of Mdse. 89 oo,7. Bot. of Sweet, Dempster & Co., Mdse. amounting to 395 oo Paid cash 29500 Our note at 3o ds. for I0oo0'C Sold Wm. Goodrich on c, 20 yds. black alpaca, at $1.00 20 o00 Io " lace, 1.25 12 50 32 I 8. __ A. Spicer drew cash for personal, use 40 00oo F. P. Stone " " " 40 00 Bot. of Sam'l JKline onale, A bill of Mdse. amounting to 381 00 I I 2 Memoranda for Retaing. CHICAGO, AUGUST i8, 1872. Recd. cash for sales of Mdse. 107 o00 20. Sold Chas. V. Smith, 15 yds. cambric, at I5 2 25 i8 " linen, " i83 33 2 india rubber combs," 40 8 6 38 Recd. cash $2.00 Bal. on al/c 4.38 2I.. Recd. of W. Goodrich, cash on 25 o00 Recd. cash for sales of Mdse. I21 00 22. Paid cash for scrubbing floor 2 00 23. Sold C. C. Collins on a, 30 yds. black braid, at I0o 3 o00 I2 " Scotch plaid," 50 6 oo 9 Sold W. Barber on a, i piece muslin, 40 yds., at io~ 4 00 3 window shades, at $i.oo 300 7 00 24. Paid S. J. Kline, cash on 100 00 Alemoranda for Reaziling. 3 CHICAGO, AUGUST 24, 1872. Recd. cash for sales of Mdse. 110 00 Sold J. R. Deaton, 28 yds. calico, at iov 280 30 " delaine, " I23 6o 6 40 Recd. cash 2 50 Bal. on 3/c 90 25. Bot. of Hamlin, Hale & Co., for cash, Mdse. amounting to 2I8 00 (C Paid cash for whitewashing store 8 co 26. _ _ _ Sold Bernard Montague, 22 yds. black alpaca, at 50 II o00 Recd. cash $5.00oo Bal. on a/c 6.oo 27. Recd. cash for sales of Mdse. I19 00 __ _ ~28. _- _ Sold S. M. Matson, on 30 yds. musquito bar, at 304 9 00 Paid S. J. Kline, cash on 50 00 H II4 Memoraida for Reta/ing. CHICAGO, AUGUST 29, I872. Bot. of E. F. Hollister & Co., on c, 50 yds. oil'cloth, at 6o0 30 00oo Recd. cash for sales of Mdse. 78 oo 30. Sold E. P. Saddler, on al, 20 yds. black alpaca, at $1.00 20 00 Paid E. F. Hollister & Co., cash on alc 20 00 31. Paid Hamlin, Hale & Co., Cash for our note 6oo 00 Interest on the same 5 00 605 00 Mdse. on hand, as per inventory 3250 00 Store Fixtures 395 00 Post, close, and make out a Balance Sheet. TO CHANGE BOOKS FROM SINGLE TO DOUBLE ENTRY. Close your books, take an inventory, and make a statement in your journal, by making the entry " Sunds. to Stock." Debit the items that m ake up a list of your resources, and Credit Stock for the full amount. Debit Stock for the amount of your Liabilities, and credi te items that make up tilst. Memoraaor CommzssCom. I I COMMISSION. The forms for Commission vary in different kinds of business. This form given for Produce Commission has been adopted by a maority of the business houses in the Produce Commission business in Chicago. Whenever a consignment is received, it is numbered from one to higher numbers inclusively in the Commission Sales Book, and a corresponding number placed on all packages received at the same from the same consigner. A Cash Book is kept, and cash paid for charges on freight and cartage is entered in this book, giving cash credit and debiting mdse. Whenever a sale is made from any of these consinments, mdse. should be credited. When a consignment is all sold, an account sales should be made and sent to the consigne; and if cash is remitted to the shipper, credit cash and debit mdse. for the net proceeds. If only an account sales is sent, debit mdse. and credit the party who shipped the goods foi the net proceeds. By this method it is not necessary to open an account with the shipper, if the net proceeds,are sent with the account sales when the goods are all sold. When a sale is made from any of the consignments, enter thei same in the voucher, as shown in the Commission Sales Book, also the charges; and when the goods are all sold, compute the commission and subtract the total charges from the gross sales, and bring down the net proceeds and copy from the voucher to the account saewhich, in actual business, is sent to the shipper. Sometimes the salesman keeps a Receiving and Sales Book with a pencil, and the book-keeper copies the same. In this work keep only Commission Sales Book, Cash Book, journal, and post to Ledger. PRODUCE COMMISSION. W~m. Lyman, Samuel Sargent, and Amos Brown have this day formed a copartnership, under the firm name of Lyman, Sargent & Co. Each partner invests $5000 in cash for the purpose of engaging in the P~roduce and Commission business. Dr. cash in C. B., and Cr. each partner for the amt. invested i6 Aemorazda _for Commissiorn. CHICAGO, SEPT. I, I88I. Bot. of Spraguoe, Warner & Co., for cash, I50 bbls. flour, at $8.75 2.__ Recd. from Bennett & Riale, Ottawa, Ill., to be sold on their a/c and risk, io tubs butter, 75 lbs. each; Gross, tare, 54 lbs. each Enter in the C. S. B., as shown for No. I Voucher. 3. Paid cash for freight on Bennett & Riale's con. Freight 4 50 Drayage 50 Enter in Cash Book and on Voucher of Corn. Sales Book. Recd. from Stewart Bros., Elgin, Ill., to be sold on their ac and risk, 500 bu. potatoes Paid cash for freight 2 75 " " " drayage 5 20 Enter in C. S. B. for No. 2, also in Cash Book. 5._ Sold John King & Sons, for cash, Con. No. i, 5 tubs butter 75-5y at I8~ Compute sale on 69% lbs., net weight, for each tub. Dr. cash and Cr. mdse. in Cash Book. 6. Sold A. B. Harvey. on a/, 5o bbls. flour, at $9.55 Paid cash for rent of store 75 00oo " " book-keeper 25 00oo Memoranda for Comm'ssion. l7.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'o Cm'So. _1 l__- ~ CHICAGO, SEPT. 8, i88i. Sold Stewart Bros. con. for cash, 300 bu. potatoes, at 95 Bennett & Riale's con., 5 tubs butter 75-5 I, at 20~ Make entries in Vouchers Nos. I and 2, and Cash Book. Made out ac sales to Bennett & Riale for net proceeds, and remitted cash for the same. Commission computed at 5% on these consignments Make an a/cle sales. Cr. cash and Dr. mdse. 9. Sold Win. Hinman, on his note, 25 bbls. flour, at $9.87' Sold Peter Cooper, on ale Stewart & Bros. con. No. 2, 200 bu potatoes, at 87W I 0. Closed Stewart Bros. con., and remitted only the ae/c sales. Dr. md-e. and Cr. Stewart Bros. for net proceeds. Recd. cash of A. B. Harvey, on a 250 00oo i8 Me morai _a for Comnmissio. CHICAGO, SEPT. T i, i88i. Recd. from A. S. Kimball, So Royalton, Vt., to be sold on his a/c and risk, 46oo00 lbs. maple sugar 50 cases eggs 75 bbls. apples Paid cash for freight 00 " " " drayage 12. Sold Thos. Wood, con. No. 3, for cash, 2000 lbs. maple sugar, at 9~ Recd. from (Chas. Abbott & Co, St. Joseph, Mich., to be sold on their Ct/c and risk, 50 baskets peaches 60 cases eggs I50 cases blueberries 13. Paid cash for freight, Abbott & Co.'s consignment 3 50 Drayage 7'5. Sold Chas. Abbott & Co.'s con. for cash, 5o baskets peaches, at 56 20 cases eggs, at $i8 50 " blueberries, at 75 __________6._____ Sold the balance of No. 3 con. for cash, Sugyar, at 934~ Eggs, at $20 per case Apples, at $3 iper bbl. Memoraazda for Commzssion. II9 CHICAGO, SEPT. 7, I88 I. Sold Otto Formhals, on ac con. No. 4, 50 cases blueberries, at $1.25, S. Sold Chas. Morey, for cash, No. 4, 50 cases blueberries, at $1.20 40 " eggs, at $I9.50'9. Rendered al sales to No. 3 con., and remitted a sight draft on First National Bank, for which we paid cash, Paid cash for exchange 50 Cr. cash and Dr. mdse. for net proceeds, and Dr. expense for the exchange. 20. Make ae sales for No. 4, and remit cash for net proceeds. Paid Chas. Curtis, cash for 2 weeks' salary as book-keeper 50 oo 22. Recd. from G. S. Butler, Ottawa, Ill., to be sold on his a and risk, i200 lbs. cheese 20 tubs butter, 65-43Y lbs. 23. Recd. cash of Otto Formhals, on aff 20 20 I20 Memoranda for CoZnisstono. CHICAGO, SEPT. 23, I 88I. Paid cash for con. No. 5, Freight 25 75 Drayage 2 75 24. Sold Wm. Trabing, on a/c, con. No. 5, 500 lbs. cheese, at I30 Sold M. M. McNair, con. No. 5, 700 lbs. cheese, at I3VAd Recd. in payment, cash 50 0oo His draft on A. B. Harvey 20 00 Stewart Bros'. draft on us 15 00 Balance on C Sold M. E. Drew, on a con. No. 5, 12 tubs butter, 65 lbs. gross, 43Y tare, at i5 net weight 25. Sold Chas. Warner, on a/c, Balance of con. No. 5, at I6'4V per lb., net weight 26. Recd. cash of W. Trabing, on /c 2 23 "'" " M. E. Drew," 52 50 " (" "Chas. Warner, on a/c 00 Sold E. J. Colwell, for cash, 30 bbls. flour, at $10.20 emora for Comizssio. 21 CICAGO, SEPT. 26, I88I. Closed con. No 5, and remitted the ac sales only 7. Find a't. of mdse. on hand, and take an inventory Post, close, and make balance sheet. INVOICES. N o. i. CHICAGO, Sept. I2, i882. GEo. DAVIS. Bot. of H. 0. WILLIAMS. 135 lbs. Rio Coffee at 27, 3I2 " WV. Sugar at 8 1 27 "Pearl Starch at 1 3' 142 "Butter Crackers at 12V 37 "Soda (Crackers at I0 143 G.ranulated Sugar at 8',2 46 "Butter at I73/4C Paid. H. 0. WILLIAMS. NO. 2. CHICAGO, Sept. 12, i882. CHAs. DOWNS. Bot. of R. J. HOWE. 19 yds. Bik. Silk. at 95V "8 Ribbon at 42C, 165 yds. Muslin at I15V4 13 yds. Cassimr at$1.5 2 12',2 yds. Broadcloth at 83.25 17 yds. Doeskin at $s.I2'/~ i Cravat, $1.25 3 pairs Boots at $43 iV2~ doz. Sleeve Buttons at 64~ 3'V2 "C Collars at $2.30 2 doz. Handkerchiefs at $135 5 doz. Gents' Socks at $15 Paid. R. J. HOWE. NO. I. VOUCH SEPT. 2, I88I. No. I. SEPT. 8, I88i. Of IO tubs butter, 75 lbs. —5 each. Of IO tubs butter. 1 ACCT SALE BY LYMAN, SARGENT & Co. ]Acc'T SALES BY I__ _ _ __ ~COMMISSION MERCHANT. For BENNETT & RIALE, Sold by Order and Acc't of B E N N E TT & R I A L E, Residence, OTTAWA, ILL. Recd. Sept. 2, I88I. OTTAWA, ILL. | iSet. Sept.5 5 tubs, 69Y, 347V2 Sept. 5 tubs, 69Y each, 347% lbs., at iSc 62 55 lbs., at i8c 62 55 8 5 20 8 5 tubs, 347V2, at 20c 69 50 132 05 6 5 3 05 Freiglh| 4 50 CHARGES: Freigh t 4 50 Drayage o Drayage 5o Commission 6 6o I I 6o Commissio 6 6o I o Net Proceeds 20 45 E.. E. Net Piroceeds 201 4 VOUCHER. |.2. SEPT. 3, i88I. No. 2. SEPT. IO, I188I. Of 500 bu. potatoes. Of 500 bu. potatoes. 1 ACC'T SALE BY LYMAN, SARGENT & Co. COMMISSION MERCHANT. For STEWART BROS. Sold by Order and Acc't of STEWART BROS., Residence, ELGIN, ILL. Recd. Sept. 3, I88I. ELGIN, ILL. Sept. 8 3oo bu., at95c. 285 00 Sept. 8 3oo00bu.,at 9c. 85 00 9 200bu., at 87c, 174 00 459 00 9 200 87c |174 00 459 00 Freight 12 75 CHARGES: Freight 12 75 Drayage 5 20 Drayage 5 20 Comnmission Commission Cotmission 22 95 40 90 ('omzsszon 22 95 40 90 Net Proceeds 428 IO E. & 0. E. Net Proceeds 428 10 124 Ma izfacturig. MANUFACTURING. The form given in this set will be found practical for many kinds of business. A list of the sales should be made in the Sales Book, which is posted direct to the Ledger as the entries are journalized in this book. Keep a Bill Book, Cash Book, Time Book, Journal, Sales Book, and Ledger. To find amount of cash on hand, add the amount of the footing of the cash column in the S. B. to the Dr. side of the Cash Book, and deduct the footings of the Cr. side. Carry all cash sales to the Sales Book, and post to the Ledger. Close the Cash Book whenever the page is full, and carry the balance over to the next page. Open Cash Book and rule for Sales Book, as shown in this work. Cash sales are entered only in the S. B. All other cash received, or paid out, is entered in the Cash Book. This form was taken from Furst, Bradley & Co. The Sales Book for this form could be used for wholesaling. CHICAGO, JAN. I, 1874. J. D. Watson, Geo. H. Kendall, and R. T. Crane have this day signed articles of agreement and formed a copartnership, under the style and firm name of Watson, Kendall & Co., to engage in the Manufacturing and Machinist business; parties to invest equal sums, and to share equally in the gains and losses. 2. J. D. Watson, Geo. Kendall, and R. T. Crane have this day each invested cash amounting to 50000 00oo 3. Bot. of W. D. Kerfoot & Co., for cash, I building and lot on Desplaines St., 300 ft. by 2 10, to carry on the above business, for 7700 Dr. Real Estate. Ala/zlujacluring. 1 25 CHICAGO, JAN. 4, 1874. Bot. of Crane Brothers Manf'g. Co., one stationary engine, for 12000 00 Paid cash 7000 00 Our two notes due in 3o and 6o days, $1,500 each 3000 co Balance on ale at 9go do. Dr. Machinery. Paid WV. K. Palmer cash for io tons coal at $9.50, 5 cords wood at $io Dr. Expense.,'f Paid cash for insurance on building and machinery I275 00 Dr. Expense. -. Bot. of Howard & Co., lathes and machinery to carry on the aforcesaid business, amountilng to 15000 00 Paid cash 5500 00 Our notes due ill 6o and 9go days, for $4,00ooo each 8000 00 Balance on a _ _ _ _ 8. _ _ _ _ Bot. of C. B. Marshall & Co.. on al iron and steel as per invoice 2750 00 9. Paid Hall & (Co. cash for safe 950 00 Dr. Mdse. I1-6 Ma f aclirizg. CHICAGO, JAN. 9, 1874.. Lot. of Geo. W. White, hard wood lumber, as per invoice 765 4o Paid cash 500 00 Balance on ale _ _ _ _ O. _ _ _ Bot. of R. G. Mason & Co., 4,675 lbs. iron castings at ioc Paid our note due in 60 days 300 00 Balance on alc. _ _ _ _ _ I I_._ Accepted C. B. Marshall & Co., draft on us at 30 ds. sight for I ooo000 00oo Paid H. M. Powell & Co., cash for repairs on house (repairing roof) 275 00 Dr. Real Estate. Paid J. U. Adams, cash for placing boiler'and machinery in proper order, as per contract 950 00 Dr. Machinery. -141. Bot. of Hall, Kimb'ark & Co., on al iron and steel, as per invoice I560 90 VaZn fiaz c in rg. 27 CHICAGO, JAN. I 5, 1874. Bot. of Heath & Milligan, paints and oils as per invoice 675 50 Paid cash 50o 00 Balance on ac at 60 ds. Dr. Mdse.'r5. Paid T. W. Haas, cash for painting factory, as per contract 45~ o00 Dr. Real Estate. I 6. Paid J. F. Thompson, cash for printing 260 75 Dr. Expense. Paid J. WV. Jones, cash for blank books and stationery 75 00 Dr. Expense. Paid W. D. Williams, cash for fitting up the office, counters, desks, etc. 675 co Dr. Expense.'9 Bot. of J' -Blunt & Co., Meridan, Conn.,' 2,400 lbs. of Sheet Brass at 2I~ Paid cash 250 00 Balance onal I 28 Ma zigfactir' rg. CHICAGO, JAN. 20, I874. Bot. of Stewart & Aldrich on a/c, 2 bbls. Lard Oil, 43 gals., each, at 6o0 Dr. Expense. Paid cash to hands as per Time Book 393 75 Dr. Expense. Paid cash for advertisingin Tribune 2 75 Dr. Expense. 22. Sold Warder, Mitchell & Co., 6 No. 8 Road Plows at $12 12 No. 21 Peekskill at $9 6 I6-in. Sulky at $55 3 i8-in. " at $8o 6 douhle Mich. Plows at $30 4 Railroad Plows at $30 Recd. cash 500 co Their note at 30 ds. for hal. M, ake this entry in the Sales Book which is written up for January. Use same form for Feb. 23. Sold Cole & Campbell, South Bend, Ind., 12 Furst & Bradley Sulky Rakes at $33 6 12-in. Lawn Rollers at $20 Recd. cash less, io% discount. MAfaiza cturg. 29 CHICAGO, JAN. 25, 8 74. Bot. of Chicago Rolling Mill Co., 2.1,760 lbs. Pig Iron at 5 Paid them our note at 60 ds. 700 o0 Balance on a 25. J. D. Watson drew cash for private use I75 0oo Geo. H. Kendall drew cash 25 00 26. Sold J. C. Nevens & Co., New London, Ind., on al at 60 ds. 6 i o-in. Prairie Breakers and Colter at $1 8.50 6 i2-in. " " and Colter at $r19.50 6 2o-in. " and Colter at $32.00 6 Common Cast Iron Plows at $7.50 27. Paid cash to hands as per Time Book 75 393 7 R. F. Crane drew cash for private use 200 00 29. Sold A. P. McDougall, 12 Scratch Harrows at $io 12 Garden Barrows, No. i, at $5.25 Recd. in paymt. his note 100 Balance on Maf jacrzig. CHICAGO, JAN. 29, I874. Bot. of John Spry, hardwood lumber as per invoice 973 46 Paid cash 500 00 Our note at 6o ds. 250 Balance on c/c at 9go ds. 30. Paid A. Williams, cash for a new sidewalk around the factory I72 50 Dr. Real Estate. Bot. of C. N. Holden, on a at 9go ds., iron and steel as per invoice 987 45 3-1. Sold Edwin Hunt & Sons on a/c at 3o ds., Friedman -Harrows No. 2, I2 at$812 144 00 Post journal, Sales and Cash Book and take first trial balance, but do not close till manufacturing is finisbed. __Fel. i, I874z. Sold Geo. Watson & Co., on al at 6o ds., 3 Sho0vel Plows, with Wings, at $6.25 i Furst & Bradley Rake 25 00 6 Sulky Rake Teeth at 6o~ 6 Road Plows at $12 _ _ _ _ _ _ _ 2. _ _ _ _ Bot. of M. T. Ames & Co.,' 20 tons Hard Coal at $9.25 5 ~Soft " "6.7 5 5 cords Wood 9.00 J~ 0 Paid cash 1n0 Bal. on at 3ods. IIJ6JflI/fd ClECHiIng. I 3' CHICAGO, FEB. 2, 1874. Sold R. M. Marsh & Co., Mendota, Ill., 24. Lever Straw Cutters at $5 12 Mich. Double Plows at $30 3 i2-in. Prairie Breakers at $24 2 R. R. Plows, very strong, at $30 I No. 3 Buffalo Mower 225 00 Recd. in paymt. their draft on the 3d National Bank of New York 500 oo00 Cash 200 00 Balance on a/c at 60 ds. 3. Paid cash to hands as per Time Book 407 8o Paid cash for gas bill for Jan. 47 00oo J. D. Watson drew cash for private use 45~ 00 R. F. Crane " " " " " 125 00 4. Paid Howard & Co., cash on al 700 00oo Sold E. P. Peacock, i Engine and Boiler, with extra attachments, for 3750 00r Reed. cash 2000 00 His note due in 90 ds. 1000 00 Balance on aleH Cr. Mdse. j g CHICAGO, FEB. 5, I874. Bot. of Brennick & Brown, 2 pair Draft Horses at $450o I Buggy Horse 250 o00 Paid cash 500 00 Balance on a/ at 60 ds. Dr. Live Stock. 6. Bot. of Murry Nelson & Co., on, ioo000 bush. Oats at 52J Dr. Expense. _ _ _ _ _ _ _ S. _ _ _ _ Sold Win. Blair & Co., 12 No. 8 Road Plows at $12 12 Cast Iron Plows at $7 2 1 2 -inch Lawn Rollers, i 6-in., at $2o 0 2 30-in., " 38 6 Blacksmith Anvils. 200 each, at io0 Recd. their note at 30 ds. 300 oo Balance on 9. Sold H. B. Tanner & Bros., Grand Rapids, Mich., 6 Johnson's Reapers at $r 15 3 12-in. Lawn Mowers at $20 Recd. in payrmt., cash 250 00 Their note at 3 monthls at io% 300 00 Balance on a Paid R. G. Mason & Co., cash on ac 100 00 JO. Paid cash to hands as per Time Book 43 6 Maizitfacziruig.'33 CHICAGO, FEB. IO, 1874. Bot. of F. B. Stone & Co., 2 Double Team Trucks at $750 I500 00oo I Buggy 275 00 Paid our note at 9go ds., for 700 00oo Our draft on Win. Blair & Co., for i00oo 00 Cash 500 00oo Balance on a/c at 60 ds. Dr. Mdse. Paid C. B. Marshall & Co., cash on a/c 500 00oo I 2. Paid H. Haas cash for shoeing horses i2 5 Dr. Expense. Sold WV. H. Banks & Co., on a/c at 3o ds., 6 No. 3 Lard Presses at $3r 6 No. 2 " " "4 20 3 No. i Meat Stuffers " 31 2 No. 2 " " "4 36.50 Less I5% discount. Cr. Mdse. in S. B. for the net amount. 13. Sold Neale & Co, Louisville, Ely., 6 No. i Hay Cutters at $24 6 No. 2 ""27 6 No.~ 3 32 Recd in paymnt. their niote-for 300 00 Balance on a/e at 30 ds. 14. Paid C. B. Marshall & Co., cash for our acceptance I1000 00 134 l la /I iiJac/uztzzi g. CHICAGO, FEB. 1'4, 1874. Bot. of F. Sturges & Co., on ac at 6o ds., a bill of Steel as per invoice 674 83 -'5. Sold Larrebee & North, Cincinnati, 0., i 34-in. Thresher and Cleaner 330 00 Recd. their draft on 5th Nat. Bank 250 00 Bal. on a/c at 60 ds. Recd. cash for the draft on the 3d Nat. 5co 00 Bank _ _ I6. _ _ Bot. of E. L. Stewart & Co., i Machine for Stampilng 2750 00 Paid cash 1000 Our notes for 3o ds. and 6o ds., $500 each 1000 00 Balance on % at 60 ds. -1 7. Paid cash to hands as per Time Book 483 75 Sold W. A. Pearce & Co., on a/e at 6o ds., 3 Sulky Attachments at $135 105 00 Sold S. P. Thomp-son & Co, Syracuse, N. Y.,7 for cash, i No. 2 Thresher complete 5 8 00 Less 20%o discount Al