M. BOSTON: NICHOLS & HALL. EMBRACING SINGLE AND DOUBLE ENTRY, COMMERCIAL CALCULATIONS, AND THE PHILOSOPHY AND MORALS OF BUSINESS. DJDeover all things in number and weight, and put all in writing tbh thou givest out or receivest in." Ecelesiasticus xliiL. BY IRA MIAYTIEW, A. M., AUTHOR OF " "MFA.NS AND ENDS OF UNIVFASAL EDUCATION.W BOSTON: NICEIOLS AND IIALL, 832 BROMFIELD STREET. CONTENTS. PAGE PAOG Remarks to the Student... 7 Bank Discount.......136-138 Abbreviations and Signs... 8 Exchange...... 138-140 Suggestions to Teachers... 9 Commis., Insurance, & Duties. 140 Introduction........ 10-18 Equation of Payments... 141-146 Storage, Dividends, & Losses. 147 PART FIWR3T. Partnerships...... 147 GENERAL BOOK-KEEPING. Debtor and Creditor..... 19 FART THIRD. Transaction defined.... 20 PHILOSOPHY & MORALS OFBUSINESs. Account Books....... 24 Choice of Business..... 148 First Form of Accounts.. 24 Labor the Source of Wealth. 151 The Ledger....... 24 How Labor most Productive. 152 The Index....... 26 Benefits from Exc,'langes... 154 Illustrative Examples... 28-39 How Merchants a-e Useful.. 155 Cash Account....... 40-41 How Money facilitates Exch's. 156 itales for Dr. and 2r. Entries. 46 Of Banks and Banking.... 157 Bills of Parcels..... 46-47 Banks of Deposit......158-162 Accounts Current...... 48-49 Banks of Discount.... 1(2-164 Bills Receivable...... 50-53 Savings Banks....... 164 Bills Payable...... 50-53 Banks of Circulation... 164 General Settlement..... 54 Quality and Functions of Money. 165 Memorandum Book..... 5.5-59 Commercial BanKs.... 167 Examples for Practice.... 60-71 State Banks........ 168 Second Form of Accounts. 72 Private Banks...,.. 169 Illustrative Example.. 73 Recapitulation.......169-171 Accounts Current... 74-76 Examples for Practice... 77-85 PART FOURTH. Third Form of Accounts... 86-89 DOUBLE ENTRY BOOK-KEEPING. Illustrative Example... 90-103 Definition of Books used... 13 Retrospect and Prospect... 104 Rules for Journalizing... 174-175 Examples for Practice.... 105-121 Classes of Accounts.... 175 Auxiliary Books.....122-124 Titles of Accounts....176-177 Books of Account. / 125 Posting Books...... 177 Notes, Orders, and Receipts.. 125-127 Trial Balance.. 178 Checks, Drafts, & Bills of Ex. 127-131 Balancing Accounts. 179-182 Diagram for Closing Ledger. 183 PART SECOND. Fourth Form of Accounts.. 185 COMMERCIAL CALCULATIONS. Illustrative Example... 185-197 Percentage....... 1.32 Examples for Practice... 198-213 Interest........ 133 Fifth Form of Accounts.. 214 Partial Payments. 134 Illustrative Example... 214-218 Computation of Time.... 135 Sixth Form of Accounts... 219 Discount........ 135-136i Illustrative Example.... 219-223 6 TO THE STUDENT. From an attentive perusal of the following Introduction, you will see some of the many benefits resulting to persons engaged in the various departments of productive industry, from the study and practice of Book-keeping. Others will present themse' {es to your mind in your progress through the book. While you can gain nothing by leaving a subject imperfectly understood, you will lose much. You should hence let it be a settled rule with you never to proceed onward while any thing remains unconquered behind. In order, then, to facilitate your progress in this important study, and to render it of the greatest practical utility, you will do well constantly to bear ill mind the following suggestions, until you shall have formed correct habits in relation to the several particulars named:1. Make every arithmetical calculation yourself, as you proceed. Rely not upon any result stated in the book, until you have first made the computation on which it depends; otherwise, although the author may have derived some discipline from its preparation, you certainly will gain little from its perusal. What is worth doing at all, is worth doing well. 2. In solving the Examples for Practice, exercise your common sense in determining how each transaction is to be entered; whether all on one side of the account, and if so, on which; or a part on one side of the account and a part on the other. Bear in mind, also, that a transaction will sometimes require an entry to each of several accounts. 3. Spell every word correctly, and write neatly and legibly. 4. Study brevity and perspicuity in recording business transactions, and in all your business correspondence. 5. Accuracy in accounts is a cardinal virtue. It is less difi, cult to fall into errors than to correct them. Therefore, 6: Exercise all diligence to keep your Account Books neat, legible, promptly written up, and free from errors. mr ABBREVIATIONS AND SIGNS. cc-..... Account,.. P..... Journal Pagse Amt...... Amount. Jan.... January. tAs.... Answer. L. F..... Ledger Folio Apr.... April. _ I~. or mo... Month. Aug.....August. Mar..... March. B. or Bk... Bank. Afdse.....Merchandise, Bal.....Balance. No...... Numoer. Bbl.... Barrel. Nov..... November. B B...... Bill Book, or Bank Book. Oct..... October. B. P... Bills Payable. P. orp.... Page. B. R... Bills Receivable. Payt....Payment. Bush..... Bushel. Pd...... Paid. C. or Ut... Cent. Pkg.... Package. Cash.... Cashier Per or pr.. By the. C. B... Cash Book. Per an.... By the year. Cent.....(Ccntum) A hundred. P and L... Profit and Losse Clk..... Clerk. Pr...... Pair. Co......Company. Prem... Premium. Cr.... Credito Ps...... Piece, or PleoM. Cwt.. Hundred Weight Pres.... President. D. or d... Day. Prin..... Principal. D. B..... Day Book. S. B..... Sales Book. Dec.. December. Sec...., Secretary. Dis.....Discount. Sept.... September. Do...... (Ditto) The Same. Stg..... Sterli ig. Dolls... Dollars. Sunds.... Sundries. Doz.... Dozen. Tr... Transaction. 1). P..... Day Book Page. Viz.....To wit; namely. Dr......Debtor. Y. or yr.... Year. E. E..... Errors Excepted. Is. ds.... Yards. E. and O. E. Errors and Omissions Ex.... Example. [Excepted. +, plus... Addition. Fxs..... Expenses. -, minus.. Sulbtraction. Pav....Favor. =, equal.. Equality. Feb..... February. X, into. Multiplication. Frt.... Freight., by.... Division. Ft...... Foot, or Feet is to, t. Proportion. Gal....Gallon. as,.3: 12::5:20. HId.f.... Handkerchief. $..... Dollars. Hhd.. Hogshead....... Cents. Hund.. H- undred. ~......Pounds Sterling. 1. or In... Invoice. @...... At, or to. 1. B...Invoice Book..... er cent. i. e.... That is. " The same. [ns.... Insurance. 11......One and 1-nliarter. Int.... Interest., 12...... One and — h I1f Invt.... Inventory. 138.....One and 3-quarters. 8 SUGGESTIONS TO TEACIIERS. BOO1K-KEEPING has not heretofore been a common branch of study in our schools, and teachers introducing it will hence often have occasion to instruct classes in what they have not themselves been taught. But this work, which has been prepared with reference thereto, and which assumes nothing as known that is not taught, while simple and progressive, is yet practical and thorough. Great care has been taken to render the more difficult parts of the science clear and intelligible. Teachers of capacity and industry may hence as readily prepare themselves for giving instruction in it, with entire success, as in any other branch of study. The accompanying Account Books have been prepared with proper rulings, and of sufficient capacity for writing up the Examples for Practice in the various forms of account, introduced on pp. 60, 77, 105, and 198. The Illustrative Examples which precede, may be worked out on separate sheets of paper, ruled by the pupil as the several fobrms require. It will be well, also, for the learner thus to work out the Examples for Practice in the different forms of account, before entering them in the Account Books. Although Keys are not generally desirable, still, in works constructed like this they seem unavoidable. The Key to this treatise, which contains the writing up of all the Examples for Practice introduced into the book, with the solution of the more difficult examples in Commercial Calculations, will enable teachers who might otherwise shrink from the undertaking, to study and teach this important science'with great satisfaction, both to themselves and to their pupils and patrons. 9 INTRODUCTION. ARTICLE 1. BOOK-KEEPING, which is the art of keeping accounts in such a manner that a person may at any time know the true state of his business, is necessary for every person engaged in the ordinary pursuits of life- for the daylaborer, the farmer, and the mechanic, as well as for professional men, and persons engaged in mercantile and commercial pursuits. 2. Were persons generally to keep correct accounts, they would be less likely to run into debt beyond their ability to pay; temptations to dishonesty would be diminished; there would be far less litigation among neighbors and.those who have occasion to transact business with one another; habits of industry, frugality, and integrity would become more general; and in these and various other ways the social and moral virtues would be cultivated, and individuals generally, composing the community, would become more fraternal and humane..3. As an illustration of the moral benefits that would result from keeping an exact account of one's personal expenses, it is sufficient to refer to the fact that individuals sometimes excuse themselves from keeping such an account, by saying it is not always pleasant to see, afterward, for what they have foolishly paid their money. This is doubtless true of more persons than have the frankness to make'the confession. Others are unwilling to let their books show, QuEST. 1. What is Book-keeping? For whom is it necessary?- 2. What benefits result from keeping correct accounts?-3. What moral benefits? Who need the restraints of Book-keeping? Where, then, should it be studied, and by whom? 10 INTRODUCTION. how, or for What, money or property has come into their possession. It can hardly be set down as uncharitable to infer that such love darkness rather than light, because their deeds are evil,- and fear the light of coriect entries, lest their deeds should be reproved. It must be apparent to every one, that all such persons need the restraints imposed by keeping an exact account of receipts and disbursements. Book-keeping, then, should be studied in every common school in the country, (as well as in all our higher seminaries of learning,) by young persons of both sexes. 4. Heretofore Book-keeping has rarely been studied, txcept by young men who have expected to engage in mercantile and commercial pursuits. But were it understood and practiced by women as well as by men, it would in many cases (and very properly too) render them more frugal in their personal and domestic expenses; prevent vast accumulations of indebtedness; diminish greatly the number of bankruptcies in the country; and secure to families generally the benefits resulting from living within their means. It would, moreover, exert a healthful influence upon the mind, and afford rational employment for many upon whom time hangs heavily, or is worse than thrown away in'idleness and thoughtless dissipation. 5. While upon the husband, father, or brother, rests the duty of providing for the necessities, comforts, and conveniences of the family- upon the wife, daughter, or sister, devolves the scarcely less responsible office of judiciously expending the means furnished, in so far at least as the wellbeing of the household requires. This is by common consent regarded as coming within her appropriate sphere. It is, then, properly a part of the housewife's business to keep an account of all moneys expended by her for the benefit of QUEST. 4. What benefits would result to women and families from this study? -5. State benefits at length, from keeping household accounts. 11 INTRODUCTION. the family, or on its behalf. When she does this, she becomes more fully a helpmeet for man, than it is possible for her otherwise to be. Domestic broils and family feuds not unfrequently result, either from real or supposed scanty provision on the part of the husband, or from alleged extravagance on the part of the wife. In case an account of the family expenses is kept as here suggested, the wife can at any time render an account for all moneys that have passed through her hands. Where the husband keeps a proper account of his business, it is hence easy to see when it may become necessary to curtail expenses in order to live within their means. It is evident, moreover, that under such circumstances two whose destinies are united for life, can more rationally confer together in relation to the well-being of the household, than where no such accounts are kept. I may here also venture one additional suggestion intimately connected with the preceding. 6. The wife or daughter might, in many instances, very properly keep the books of the husband or father, whose time is absorbed in the pursuits of a laborious profession, and thus not only save the expense of a clerk, but transact the business of the household more satisfactorily, and have the pleasure of contributing to the comfort and happiness of the family, as well as to its pecuniary interests. WVoman, when not otherwise employed, may also properly enter the counting-room, and engage with father and brothers in its quiet duties, for the discharge of which she is as well fitted by nature as they. She thus acquires a knowledge of busi ness, and if bereft of husband or father, upon whom too many females are entirely dependent for support, she may be enabled herself to conduct the business advantageously, or to close it without loss. QUEST. 6. How may women aid in business by keeping books? What of woman In the counting-room? May she learn to conduct a business herself? 12 INTRODUCTION. 7. Females, as heretofore generally educated, have been quite too dependent for a support upon their male relatives and friends, if such they chance to have. Frequently, too frequently, alas! there is exhibited the painful spectacie of the widow, bereft of him to whom she has been accustomed to look for support and the maintenance of her little ones, without any knowledge of the ordinary forms of business, and hence not only without the means of procuring a competency for herself and children, but unable advantageously to assume the charge of any property she may chance to possess. Under such circumstances, few females, comparatively, are prepared properly to conduct their own business. Losses, embarrassments, poverty, and not unfrequently the painful sense of dependence upon the cold charities of an unfeeling world, hasten those thus situated, who but yesterday were confiding and full of hope, on to a premature death, leaving the world sorrowful and broken-hearted, chiefly because of a defective education. How important it is, then, that the study under consideration should receive the attention of females as well asof males! Especially should Bookkeeping be regarded as an indispensable study in every young. ladies' seminary. 8. The one great object which parents seek to attain in directing their children to enter upon the study of Arithmetic in our schools, and which youth have in view in entering upon it, is, that they may become the better qualified for the discharge of the ordinary duties of life and for the transaction of such business as they may have occasion to engage in. But if a portion of the time ordinarily given to this study were judiciously bestowed upon a practical system of General Book-keeping, this important object would be much more QUEST. 7. Tn case of bereavement, which is better, for widow and orphan to be able So conduct the business of the husband and father, or to depend upon friends? Should ladies learn Book-keeping?- 8. Is this study of less importance than Arithmetic? 2 13 INTRODUCTION. speedily reached, and with vastly more pleasure to the learner. 9. I would not underrate the importance of arithmetic as a study in our primary institutions of learning. It has long and very properly been pursued, in all well regulated schools, by both boys and girls, whose education would be exceedingly defective without a familiar acquaintance with its principles and their application to the ordinary transactions of life. -But it is apparent that a practical familiarity with the principles of General Book-keeping is of much greater importance than the most perfect comprehension of the mysteries of square and cube root, of arithmetical and geometrical progression, of permutations and combinations, of the summation of an infinite series, etc., to say nothing of the exploded rules of single and double position, and many others that might be enumerated. 10. English Grammar, which is defined as the art of speaking and writing the English language with propriety and accuracy, is now very generally studied in our common schools. But in order to turn it to the greatest account, its principles should be practically applied, in the school-room, to accounts, and to the ordinary business transactions of life. 11. MIuch attention is now very properly paid to Penmanship in our schools. But it should be borne in mind that the great mass of the people employ this art chiefly for the purpose of recording business transactions and in business correspondence. How important, then, that correct forms and habits in these respects be early acquired! Pupils, it ought generally to be known, make the most rapid improvement in penmanship when engaged in writing something in which they are interested, and which they feel that they can afterQUEST. Is Book-keeping of more practical importance than many of the rules of arithmetic? - 10. What application should be made of the principles of Qrammar? - 11. Is Penmanship of much practical importance? When will improvement in penmanship be most rapid? 14 _ INTRODUCTION. ward turn to practical account. It cannot fail to be apparent, then, that independently of the benefits already enumerated, pupils will make greater improvement in this useful art by devoting a portion of their time to practical accounts than by writing after set copies. 12. It is but a few years since Book-keeping has been taught, to any considerable extent, in any grade of Schools in the country. And it is not even now taught in Colleges or Universities; nor is it embraced among thte studies required to be pursued preparatory to admission to these institutions. As a consequence Graduates of Colleges and learned Professors are often less familiar with the simplest principles of business, than they are supposed to be with Latin and Greek roots, and with the orbits of the Planets and their Satellites! * Within the last few years Book-keeping has become a study in many of our Public Schools, in both cities and villages, and in the country. But Book-keeping by Double Entry is not less attractive as a Science, nor is it less important as a means of discipline, than are Geometry, Chemistry, and Natural Philosophy, or even Latin, Greek, and Astronomy. Add to this its practical importance, and absolute necessity in a commercial country, like ours, and the propriety of its introduction into-our higher Seminaries of Learning generally must be apparent. Certain it is that no person can properly be regarded as liberally educated who is unacquainted with it. 13. The author of this treatise, in the execution of a plan laid many years ago, and practically tested in the school-room, * A popnlar writer on education remarks that a teacher, who had kept a private school, was met in a country store by one of his patrons, who paid him for the tuition of his chilli. asking at the same time for a receipt. The teacher stared vacantly * at his patron. "Just give me a bit of paper," said the patron, " to show you've got the money." "Oh. yes, sir," said the teacher; and taking a pen and paper, wrote the following:' "I have got the money. J- D-." QUEST. 12. How does Book-keeping rank, in point of importance, with brancbes tommonly taught in schools? Is a knowledge of Book-keeping necessary to a liberal education? INTRODUCTION. has sought to supply what many practical teachers with whom he has compared views upon the subject in various portions of the country, have hitherto considered a desideratum. The study of this work may be advantageously commenced as soon as the pupil is familiar with the fundamental rules of arithmetic; and it may be successfully prosecuted in connection with any of the branches of an English education. The following are some of its distinguishing characteristics: * 1. Before introducing the pupil to accounts in which debit and credit entries occur, which is usually the first thing done in treatises on Book-keeping, a business transaction is defined, and the mode of entering the same in the books of both debtor and creditor illustrated. Several transactions are then stated, in various phraseology, and the entries to be made in the books of both parties further exemplified. These entries — which are in all cases made in script that closely resembles writing — afford good models for the. learner. Then, in the first example of accounts that is presented, the transactions entered are on the same folio stated in common language, which enables the learner fuilly to comprehend the whole matter. 2. After giving a few specimens of the mode of keeping accounts by the first and simplest form, together with the necessary instructions to the learner, a series of business transactions, drawn from the ordinary pursuits of life, are introduced, in the form'of problems to be solved. In their solution it becomes necessary, from inspecting the transactions, merely, to compute the value of whatever has been bought or sold, the price and the quantity being given; to * make the requisite debit and credit entries, after first deter, mining to which side of the account each transaction belongs; and then to balance the several accounts, which are to be * Since the first publication of this work, in 1851. other volumes on the same subjeet have been printed, in which some of these distinguishing features have been copied; but in no other work, so far as the writer knows, can they all be found. New features of interest are also introduced into this revised edition. 16 INTRODUCTION. written out like the patterns already set, and entered in a blank book prepared for that purpose. 3. Numerous Examples for Practice are likewise intro. duced in each of the five remaining forms of account, wit} accompanying blank Account Books appropriately ruled, in which they are to be entered when solved. These blank books contain engraved Forms for writing up Day Book, Journal, and Ledger, and for Notes, Drafts, and Bills of Exchange, with business forms generally, and may hence advantageously be employed as writing-books. 4. The instructions in relation to the mode of keeping accounts, which will be found sufficiently full for all ordinrary purposes, even in the simplest forms, are generally given on the same page or folio with the illustrative examples, with carefully prepared questions for the examination of classes. 5. For the convenience of Teachers in examining the work of their classes, as well as for the encouragement of the private learner, a Key has been prepared to accompany this work, in which all the Examples for Practice are correctly entered in the various books used, and the accoants balanced and closed, so that no teacher, however inexperienced in keeping accounts, need shrink from undertaking to prepare himself for instructing classes in the use of this book. 6. The present Revised Edition of this work, while it retains the simplicity and gradually progressive character of former editions, is more complete than they were, and especially in Double Entry. The Diagram exhibiting the mode of closing accounts, p. 183, will enable the learner readily to comprehend what has hitherto teen justly regarded as the most difficult, feature of Double Entry Book-keeping. 7. The Examples for Practice, interspersed throughout the work, give the pupil the benefit of combining the Theory and Practice of accounts, and of deriving at once the advantages of both school-room and counting-room. 8. All the real advantages of printing in colors are incor. 2* 17 INTRODUCTION. porated into this edition, and still it is furnished at an unprecedentedly low price for a complete treatise on Book-keeping. These characteristics are believed to be peculiar to this work. They make the whole subject perfectly intelligible to the intermediate classes in our common schools, as well as to ~ those more advanced, and invest it with so much of interest as to render it highly attractive. In its use, it is confidently believed scholars will more rapidly acquire that facility in making business computations which is most desirable, than by devoting the same time exclusively to the study of arithmetic, as has hitherto been generally practiced; that they will make greater proficiency in penmanship than though an equal amount of time were devoted to writing after set copies; and that they will at the same time more readily acquire a thorough and practical knowledge of Book-keeping than from the study of any work that has heretofore been given to the public. So,'view it in what light we may, the advantages arising from the study of Book-keeping, with the improved methods here presented, are too great and too numerous to allow much time to elapse before its general introduction into all our common, intermediate, and high schools. NOTE. By referring to the opinions of Teachers who have used this book, and of Practical Educators who have carefully examined its claims, it will be seen that the views of the author, as here expressed, are regarded as fully realized by those who Mave given most attention to the subject, and are competent to judge. 18 PART FIRST. GENERAL BOOK-KEEPING. ART. 14. BOOK-KEEPING is the art of keepinng accounts in such a manner that a person may at any time know the true state of his business, or of his debts and credits, by an inspection of his books. The term General Book-keeping signifies that kind of book-keeping which is suitable for persons generally, such as farmers, mechanics, professional men, retailers, and, indeed, all persons except merchants engaged in a wholesale business. 15. Were persons universally to receive an equivalent for their wares when sold, and were they enabled to pay at the time for whatever they have occasion to purchase, it would still be desirable to keep a record of their business transactions. This necessity becomes imperative whenever products and goods are bought and sold without making payment at the time. DEBTOR AND CREDITORt. 16. Whenever one person receives any thing from another, which he does not pay for at the time, he is said to go in debt for it, and is called a Debtor. A person who sells property without receiving his pay at the time, is said to give credit for it; and is called a Creditor. In other words, the receiver is always the Debtor, and the giver is always the Creditor. In keeping accounts it is customary, and more QUEST. 14. What is Book-keeping? What is meant by General Book-keeping? -15. Is it always desirable to keep a record of business transactions? When does this necessity become imperative?-16. When does a person become a Debtor?'vhen a Creditor? When property exchanges hands without payment being made at the time, what general rule is stated in relation to the receiver and giver of it? 19 GENERAL BOOK-KEEPING. convenient, to abridge and write Dr. for Debtor, and Cr. for Creditor. 17. The act of buying or selling is called a Transaction In every transaction there must be both a buyer and a seler. Where the property which exchanges hands is not paid for at the time of the transfer, the buyer becomes a Debtor, and the seller a Creditor. The following will serve as an illustration of the correct use of the terms already employed: TRANSACTION.-James Armitage buys of Isaac Merrill one pair of Kip Boots, for which he is to pay him four dollars. In this transaction James Armitage is the Debtor, because he is the receiver; and Isaac Merrill is the Creditor, because he is the giver; or, in other words, the furnisher. The parties make the following entries in their respective books, under the date of the transaction: Isaac Merrill writes in his book, e/> on zt ae v 60 ojtse,, 00 James Armitage writes in his book, efaac G1e14w * ud by one OleI O/a 0" o/... if.oo 18. By examining these entries the pupil will see that the creditor writes the debtor's name in his book, and that the debtor writes the creditor's name in his book. This should be remembered, for it constitutes an invariable rule. 19. The word e7o, with which the creditor commences the entry in his book, indicates the passage of whatever has been sold, from him to the debtor; and the word, with which the QUEsT. I6. What abbreviations are used for Debtnr and Creditor? —17. What is a Transaction? What ninst there be in every Transaction? Which becomes the Debtor. and which the Creditor? State a Transaction. In this Transaction who is the Debtor, and why? Who the Creditor, and why? In the Transaction stated,what entries should the parties make in their respective hooks? — 18. Whose name does the creditor write in his book? Whose name does the debtor write in his book? Why ought this to be remembered? — 19. What does the word To, with which the creditor commences the entry in his book, indicate? What the word By, with which the debtor cojpmences the entry in his book? 20 GENERAL BOOK-KEEPING. debtor commences the entry in his book, the reception /b him of that which the creditor has charged to him. In other words, the e7o, on the Dr. side of an account, indicates indebtedness to us from the person named in the account; and the 0y, on the Cr. side of the account, indicates indebtedness by us to the person named in the account. 20. The following examples will further illustrate the mode of entering transactions in the books of both debtor and creditor, with which the pupil should become familiar before progressing further. - For this purpose separate sheets of paper may be used. Let the pupil write the transactions on one page, numbering them, and make the proper entries on another page, with their corresponding numbers and correct dates, as in the annexed examples. The transactions may be copied from the book. The entries should be made like those in the examples given: but they should be made from an examination of the transaction; not copied from the book. The pupil might also write out additional transactions, and having studied them carefully, be prepared in recitation to give the entries either on the blackboard, in writing, or orally, all of which methods might in turn be practiced. 21. The price and the quantity being given, the learner should, from the first, invariably compute the value of all articles bought or sold, whether the calculations are made in the book or not. It would be to his advantage to do this in studying any treatise on Book-keeping. But in the use of this work it becomes absolutely necessary; for the pupil will soon be called upon to record transactions where such computations are unavoidable. QUEST. 20. Should entries be copied from the book? How should they be made? -21. What computations should the learner invariably make? Are such computations avoidable in the study of this treatise? State the first transaction, and give the entries to be made in the books of both parties. State the second transaction and the entries. The third. etc. Let the pupil sate additional transactions, and give the entries orally, or on the blackboard. 21 SEVERAL TRANSACTIONS: TRANSACTION 1. JANUARY 1St, 1860. James Armitage buys of Isaac Merrill one pair of Kip boots, for which he is to pay him four dollars. James Armitage is the debtor, because he is the receiver. Isaac Merrill is the creditor, because he is the giver. TRANSACTION 2. JANUARY 2d, 1860. Hallock & Raymond sell to John S. Barry one suit of clothes, for which he is to pay them fifty-two dollars. John S. Barry is the debtor, because he is the receiver. Hallock & Raymond are the creditors, because they are the givers, or the sellers. TRANSACTION 3. JANUARY 3d, 1860. William H. Boyd sells to Charles G. Johnson 40 lbs. of nails, for six cents a pound. C. G. Johnson is the debtor, because he is the receiver. Wm. H. Boyd is the creditor, because he is the giver. TRANSACTION 4. JANUARY 4th, 1860. Alex. McFarren buys of Harper & Brothers 4 dozen copies of Mayhew on Education, at $9.00 a dozen. Alex. McFarren is the debtor, because he is the receiver. Harper & Brothers are the creditors, because they are the givers, or the sellers. 22 MODE OF ENTERING THEM. ~'36J. Isaac Merrill writes in his book, Ian. If afzesd rzice.... e7o onel/ za V(.da s4, 4 0O James Armitage writes in his book, -aa' e'Yaac vczeG 1,.... 4 oe1W Ga' / 5l oo(, 4 06 6dO. Hallock & Raymond write in their book, la n. 2 /lX e * * *. O. oone/. yt ~..... 52 OC John S. Barry writes in his book, /a2. a.dtcz ~ 6zymo,.. 40l" o/etZ@C I/ Z.. 52 006 ('d60. Wm. II. Boyd writes in his book, l 3/w ./1,, ~' {,c... 12 70,, 1/ J/ 20 al e....25 7 50 so VI' *ad At,25 75 2 // ry/ 4e a 4A Maced 22 50 c4lav. 6 /,, 4 o/ 3 4.15 5 10!26C. 1 /4 " J/. 01cz, ar A;..P09 72 " 21 " Balance (due me).. 8 17._________________ 106 00 count. This indicates that it is due me, but not paid. Such entries are often made in red ink. The Balance I debit him below, as the amount due me on settlement. 34. When one side of the account contains more entries than the other, as in this example, an oblique line should be drawn across the unoccupied space, as is here done. The Dr. and Cr. amounts, when footed, should equal each other, and be on the same horizontal line, as in this example. 35. The Bill of Goods on account of John Bruce, my hired man, bought April 12, I credit to the Merchant and debit to Bruce; also my Order in his favor of July 2. When goods are credited " by bill," as in this instance, the bill should be kept till the accounts are settled. QUEsT. 34. Wlien one side of the account contains more entries than the other, what rule should be observed in relation to the footings?- 35. What items that are mreditedin this account are debited in another account? When goods are credited by bill, how long should the bills be kept 81 36. Here is represented an account with John Bruc, my CRp.12 G57Zlo 7o/moa~4n dum. Q~-ezZ7m 25.S 1 " 17 o/' Y//Xooi GLfa/y CI7IkL 7 50 JeHy 2d " on z amrne/ Gi ams 22 50 Ae~.l{1 /A my w at 60 tod go GZnce 29 25 36. Here is represented an account with John Bruce, my hired man: (for the terms of my contract with him, see Memorandum Book, 58th page.) The first and third debits in his account are credits in the account with Samuel Adams, as exhibited on the last preceding page. I have also debited him the amount paid W. Wood on his behalf for making a suit of clothes, and with my Note to balance, and thus closed the account. I have debited him with my Note, the same as I should have done with Cash, had I paid him the money to balance. This fulfills my agreement with him, as per memorandum referred to. My note I shall of course expect to pay when it becomes due. (See Bills Payable, 50th page.) 37. These entries, and the two referred to in the account with Samuel Adams, are made in accordance with a principle already stated and elucidated, which enables us to determine where to enter every transaction belonging to personal accounts. The principle is this: The receiver is always the Debtor, and the giver is always the Creditor. No distinction is made between cash, notes, goods, accepted orders, (see remarks in relation to Orders, Art. 164,) money due for services, or houses and lands. Whenever a person receives any QUEST. 36. In case I make an order on Samuel Adams for $22.50, payable to John Bruce, how should I enter the transaction in their respective accounts? In case I give my note to John Bruce to balance an account on settlement, how do I enter the transaction in his account? 32 edg Byh 9 -'a;at;).. {0.001 SO 00 eSoW2~, o 5 L ~. d0..;..0o,0 55 00 65 00 of these or other property from you, or you pay them on his behalf, the transaction should be entered on the Dr. side of his account. When he pays them to you, or on your behalf, and thus becomes the giver, and you the receiver, the transac. tion should be entered on the Cr. side of his account. In the case of my order on Samuel Adams for $22.50 in favor of John Bruce, Adams is the giver to Bruce, on my account, and hence my Creditor; and Bruce is the receiver from Adams, on my account, and hence my Debtor. This principle is of universal application. 38. The symbol of a Pair of Scales on the Title Page, which beautifully illustrates the general principle that the Dr. and Cr. sides of an account ought always to balance, particularly illustrates the account here introduced. As the four smaller weights at the left arm of the scales are exactly counterpoised by the two larger ones at the right arm, so the four smaller entries on the Dr. side of the account exactly balance the two larger ones on the Cr. side. Another symbol is referred to in Art. 277. QUEST. 37. What general rule is stated which enables us to determine on which side of an account to enter a transaction? Does the rule apply to notes and orders as well as to money and goods? When a person receives property from you, or you pay it on his behalf, how is the transaction entered? HIow, when he pays to you or on your behalf? Is this principle of universal application? - 38. What principle does the symbol on the title page illustrate? Apply that symbol to this account. Id/59. I 2 c> fcaie/10 e% 12 C2 r a. B.oo 00 ", 20 a'z B y., 1.50 6 00,2 / o 0. Ox%.,. 200 20 00 ___,, 27 A..',., d /,S B,,,..,o 2 0 Jo // // 2'ezz Xo. 1. Y.00 200 n' / t o " 6o aS,.ciawwev.50 2 00 I" I tarl 6. ~.50 27 00 &c 1, // 216 t'4~At 22 20,, If ~ 61o,,a," 12' / w,"~"t'~y e4. oz. d.. 6 00/o I/'* "" Gf.& tc 20 /mz eGw.07 25 20 a, " ( Profit on the Crop.... 70 20 226 20 39. The above is an account with a Wheatfield of 18 acres, from which it appears that the net profit (after paying the interest on the value of the land, and all the expenses of raising the crop) is seventy dollars and twenty cents. The account is kept just as an account with a person is: The field is debited with every thing put upon it, with every expense.made on its account, and with the interest on the land at a fair valuation. It is credited with every thing it produces, and with every thing received on its'account. The excess of the credits over the debits gives the net profit, which must be entered on the Dr. side of the account in order to balance. (Art. 33.) Accounts may be kept in like manner with every branch of one's business, whether agricultural, mechanical, commercial, or speculative. QUEST. 39. In the account with a Wheatfield of 18 acres, what is the net profit? How is the account kept? With what is the field debited, and with what credited? How is the net profit ascertained? With what kinds of business may accounts be kept in this way?.84 ,,60.. c, &ct 3/ 42364~/J.5.4'2Yea.at..70 22i 20 //"/ I/' aw/ st VOWd1i4. 5 00 236 20 40. Were persons generally to keep such accounts, they could ascertain, with great accuracy, what pursuits afford certain profits, and what particular department of their business is most lucrative; also, what enterprises are hazardous and unproductive; and, by regulating themselves accordingly, they would of course best promote their own pecuniary interests, and at the same time contribute most effectually to advance the general prosperity of the community in which they live. (Arts. 218 to 225.) 41. When the debits in such an account exceed the credits, and it becomes necessary in balancing the account to make the last entry on the Cr. side, it is evident the enterprise is attended with loss, as is exemplified in the account with a Grain Speculator on the next folio. QUEST. 40. What advantages would result to the individual and to the community if persons generally were to keep such accounts? —41. When the debits in such an account exceed the credits, is the enterprise attended with gain or loss! 35 e. 5 cyy5arG;c e 1o0u. G'a//o 10,00 a.' ea 72 7200 00 {S' I, //'to &Klle /iez OAA..15 1500 00 GeIof2,0 "//'k, at a wer C..04 11 40 00 " / /?Asi aga62n.e eze V~ ce Y tn de 48 y.50,, 27, J a M t — O g ao.03 300o 00 /o i//,e l att @}n4mzance Y 2ez celnt. 43 50 el/if, ". Az, ODIN /'or A:a10dz.a 1 00 00 / I,,/ o4?zle on h9700 at Yf ce. 34 50 X XI II /1 Q 2An ewt on ame 6 dmod..07 304 50 9985 00 42. Above is the account of a Grain Speculator, who made a purchase in Southern Michigan, the 10th of Nov., with the expectation of getting the same forward to Buffalo, making sales at 97 cents, and getting returns in two weeks. Had he realized his expectations he would have reduced the cost of the wheat to him in Buffalo, one cent per bushel of the charges in Monroe on account of storage for the winter, 159. GKov 10 ea {'as9a 10.m000 oa'Ifa.72 7.000 00 " /,, . at i..03 300 00./ /, // ~ae &t, and et atze,z. 834 5, I/,,~ m /1~ ant/ &0ctfifad0 14x e 8f S50 { /" // Gefatket, on " 700 Ao B mymik.07 25 S7 / "/ // "Amount to Balance (Gain)... 187 63 9700 00 QUEST. 42. — What was lost by a Grain Speculator in the Wheat Account here given 1 6 .5 4 6tOOCeeag, o/oo0 a m.'A;t.97Y~ S'500 00 //' 0 // a 6000 al..6Z "52-0 00 " "/ Amount to Balance (Loss). 1215 00 /9935 00 the insurance against fire, and 51 months interestamounting in all to.. $422.63 And his receipts would have been greater by. 980.00 Making an actual difference in the result of.. $1402.63 Hoping to gain $187.63, as appears from his figuring below, before engaging in the enterprise, he actually lost $1215.00, as appears from the account as given above. /'659. -4l. 125 I cE okz zox 1oo 0,000 om, ~ 97 97 000 NOTE. In order to exhibit this account complete on one folio, the Lake Freight and Marine Insurance in the opposite entries (which are the same as in the above account) are combined; also the charges for Commission and Exchange. 9700 00 QUEST. 42. What had he hoped to gain? What difference, and how made up? 37 ~.,J,59. l.,. Ogl4.00 GI 7 I 14 156 TVzd s>naw..25 3 50 I // 38 aw.. 0.2.00 6 00 " 2 // a. citaw e *. 1 50 // 8// 1S 2. /tfOd=oa..1.50 0 25 5 / a,.50 63 o/'o/ 1d.4 Sf7?a S.3/f 7 44 at. 12 /,, /z,z/acc/o.. 3.00 1'2 00 // " //1 // 2s oz. O? o-nf..25 29 "/' // 2! 25 49. This account is here continued from the preceding folio. It might have been carried to any other, as well as brought here, by making the proper entry at the foot of the page from which it is brought, showing th' folio upon which it is continued. 50. The books of the Creditor should specify every item sold. This is always important, and especially so when the entries are of considerable amount. The last entry on the Dr. side of this account with H. Van Allen is hence radically defective, not a single article debited being specified. The Bill, if purchased by any other person than himself, may never reach him; or if it does, it may be mislaid, and in the settlement it may be impossible to satisfy him that this amount has ever been received by him, or on his account. The Debtor may give credit for goods as per bill received, if he choose to do so, as in the case of a " Bill of Crockery " in QUEST. 50. What should the books of the Creditor specify? What of the last Dr. entry in the account with H. Van Allen? May the Debtor give credit in his books per bill received? In such cases what should be done with the bill? 44 |rr~eker n one fir "Bill ofGn Bruce 6160. j - v {cub eensuc sso prevn n yocasionfor di.f.icult0 14 A0 4/o m XX. 30 i. 29 /I o iat was, Ia 157 S ee this account at the 73d page, kept by the Second fbrm. tHt account with John Martin on the last folio, and as is twice doLr in the account with Samuel Adams once for a "Bill of arcrekery," and once for a " Bill of Goods for John Bruce." But even in such cases, to prevent any occasion for difficulty, it is better to preserve bills until the accounts are settled. db. If on the Dr. side of my account with a person, I enter " To Bill of Goods," and carry out only the amount, he may not give me any credit at all, and on settlement he may dispute the account, and I may then be unable to specify a single article sold him. On the contrary, if I-enter on the Cr. side of my account with a person, "By Bill of Goods," and give the amount, I thereby acknowledge the receipt of she amount; but in case the books do not exactly agree, difficulties may still arise in the settlement, if the bill is not preserved so as to compare items. The following rule should be observed for Dr. and Cr. entries: QUEST. 51. Why should the items sold be specified in the books of the Creditor,. when they may be entered per bill in the books of the Debtor' 45 GENERAL BOOK-KEEPING. RULE FOR DR. AND CR. ENTRIES. 52. The Books of the Creditor should specify both the quantity and the value of every article sold. The Books of the Debtor should likewise specify both the quantity and the value of every article bought by him, unless bills are received of goods purchased, which is always preferable. When bills are given, the holder of them may enter the amount only in his account, but he should keep the bills on file until settlement. BILLS OF PARCELS. 53. A BILL OF PARCELS is a statement of goods bought or sold at one time, embracing both the quantity and the price of each article, and the amount of the whole. If paid at the time of purchase, it should be receipted by the seller, as in the first example on the opposite page; if paid " by note," as in the second example; and if "charged in account," it should be entered as in the third example. 54. In case goods are paid for in money when purchased, it is sufficient for each party to enter the transaction in his Cash account. But even then, if there is a personal account between the parties, the merchant should debit the purchaser for the goods sold, and credit him for the money received. 55. When payment is made " by note," the merchant should make the necessary entry under the head of Bills Receivable, and the purchaser under the head of Bills Payable; and in case there is an account between the parties the whole transaction should be shown. (Art. 54.) But 56. When a bill of goods is "charged in account," the merchant should simply debit the purchaser with the items sold, which should be credited in the books of the latter. QUEST. 52. What rule is given for making Dr. and Cr. entries? - 53. What is a bill of parcels?-54. When goods are paid for at the time of purchase, what entries should be made in the books of each party? - 55. Wihen payment is made'" by note," what entries should be made?- 56. When a bill of goods is "charged in account," what entries should the parties make in their books? 46 BILLS OF PARCELS. ( 1) jeod 10/6 s~ f O, f60. 8,00./wwzzC.07 1 0.40? ike ~ Z ~.05..70 ~,,,,.,.5..... I " /......2R...75 6geeied,ayme1&4,,/0.29 Goods delivered ND 7f / to hired man. j'' (2) /~ Sfca e~s~gt~ IL~a ~. c~. Io { 1. vi, Y/p..1..o..3o75 { td OV.6ed e:'eo..... $.o {< // /1 - // /at u.... 1.00 - ie'd 5 ~z~~nze & Sob 30 /6 6d00 (3) aotm, G4#em04z 1O, Ae60. ~~avu/2 f 20wntn,.6'/t.....80... 8 8 20,1~~~~/40 GENERAL BOOK-KEEPING. ACCOUNTS CURRENT. 57. An ACCOUNT CURRENT is a record of the unsettled transactions between the parties named in the account, comprising both debits and credits. It should contain a list of the items bought and sold, together with their prices, and should show the date of each transaction; thus: zye (S"Fr o-eeBa. lae dumed.0M i,/t. 0 ea S3 CS G-$aAd 11Se d.50 1 50 so, /2 ege9 /Imscana eaze 50. a4 15 /. o.15 2 25 /o /1 21,~ // a e/..20 50 11 Y0 " / 4 el'/e.. 1. 52 " / Ad /.9/.09 S06 65 IR_'ed 4i 4 0 Iaes.,aea.1 1 4o0 G4l a / "I// Ae Uo C 1 6 Balance due me. 3 65 %6 63 (Art. 33.) EXAMPLES FOR PRACTICE. 58. In the following examples, where several articles of the same kind are bought or sold, the price and the quantity are given, and the pupil is left to carry out the amount, which should uniformly be done. If the computations are correctly made, the accounts will exactly balance. QUEST. 57. What is an account current? What should it contain and show? 48 EXAMPLES FOR PRACTICE. la'. y // 6 Y. 51a __.1.., / 6 o. __ __ _. _, r _ _ 4 h,4, doz Z Wm q --.0 6 9e. 1 // th a s am.les or bfo 4 09 cA4 1', /6'a ezeo'Y~a~aeze6 5 20 6 5 2. /"2 / 12,,sW, 4 O.44. 1 6 / 1 6;ao.'2 *a 5. 4 - 16~60. _ ____ _. 1 // "' 6 ar. gfZ~cA,9 1d.00- - "i' 1 // 0'atko CiZnce. 8 3d 66 4 59. In the last example, the credits occurring before and exceeding the debits are placed first in the acct. Both examples are diferently arranged under the Second Form of Acets. 6 49 Coed at9Wf A/Xd No. Date. Maker's Name. Indorser's Name. " /0 im u. "Yaw u 7yw dl 2 2 G'1t G4 3. efd{amWn Glrolae s e,, 6i1azr 0e Z & a, dE 0lay 4 10 Ge. X.4,evuca C. de,. 5,, 20 Jtmeu,zaw' rr C4/tof led ada/ Sa No. Date. Payee's Name. Indorser's Name. S460. I other persons, such as Promissory Notes, Due Bills, Orders, 4 a/ 15j yzace sooc/mcrnea~t 60. The term BILLS RECEIVABLE includes all written obligations for the payment of money which you hold against other persons, such as Promissory Notes, Due Bills, Orders, Drafts, etc. When any of these are received by you, they should be at once entered under the head, Bills Receivable, noting particulars, after which they may be placed on their proper files. Then, by referring to the Bill Book, it will be easy to see when any obligation you hold against another becomes due, where it is payable, etc. You thus save yourself the trouble of examining various packages of papers, the contents of which are here noted. Bills-, -when thus entered, may be readily referred to by number. Persons engaged in extensive business find it convenient to keep separate Bill Books; but those who transact a limited business may require only a folio of their Ledger, properly ruled QuEST. 60. What are Bills Receivable? Where should they be entered when received, and why? What, then, can be ascertained by referring to the Bill Book? 60 Where Payable. When Due. Amount. Remarks. $~zae ~no~;d. 29 75 50.ae/cs.4eeL~y y / AD 15 24 75 0 /cne 14, i&6i dh " Ja,, 1 62x t G~l~~ O4v. 20 17 14 ua 1o j f ooA 0/K(29710Me O. so 25 00 Where Payable. When Due. 1 Amount. Remarks. zoate GA 12 29 g25 g / tzg6 t JeI &wens e e l m. 125 10 50 1 M7/ Iane 20, 1i1| e6 a/t 51 20 00 61. The term BILLS PAYABLE includes all written obligations for the payment of money, of whatever kind, given by you to other persons. Whenever you give such an obligation you should enter the particulars in the Bill Book. It is of the utmost importance to note, at the time, at least the amount and when due, together with the payee's name and where payable. 62. The maker of a note (called also the giver or drawer) is the person who gives the note, and who must sign it. The payee of a note is the person_ to whom it is made payable. The place where a note is payable should always be specified whenever the payee (or holder of the note at the time it becomes due) does not expect to call at the maker's place of business, or at his residence for payment. (For other par, ticulars pertaining to Bills, see Arts. 159 to 171.) QUEST. 61. What are Bills Payable? Where should they be entered when given? What should he especially noted? - 62. Who is the maker of a note? Who the payeeI When should the place where a note is payable be specified? 51 fs60. / c/'o 2 o-4. 2, o. x. G,/a t 2..75 12 G/fv 8, X X 7koad Saye d.. 60 00 / 20 Ho. 5,"// 6Ame i azA w. O. 25 00 202 89 ~ec. I 7o a 1wetacowc& 8214 1G14t 2 4s, cp2925 GCZ Cd3 j 1.. 6 v29 25 g&4ne 20i F a to Jn Oww G/ 2 10 50 ~,af1 5 d'a do.,, doGo. o 20 00 ~ae I / Balance (not due)..... 40 84 100 59 63, In connection with the general statement concerning Bills Receivable and Bills Payable, presented on the last folio, it will be found convenient to keep a Dr. and Cr. account with each. This is done in the same manner that an account is kept with an individual, or with Cash. 64. When we give any thing for a Bill, or on its account, we debit it. When we receive any thing for a Bill, or on its account, we credit it. The first entry to every Bill Receivable is on the Dr. side of the account. The first entry to every Bill Payable is on the Cr. side of the account. QT,;iT. 63. How may a Dr. and Cr. account be kept with Bills Receivable and Bills P., a'b le? — 64. When do we debit a Bill, and when credit it? Where is the jfirn )ntrg so Bills Receivable, and where to Bills Payable? 62 2, G 2cei'a o.1 202 1' @s8,1 12 vG'1' <. 1 o / JiP.ce (Art.36.) r 29- 75 do. a X... do. 6.. 20 00 1, m,0 4o. 2, // /. o S. on 10 00 1566 f. Balance pn aide. (cun i 32 14 @92/ke p 1~~oc~~wss* 4a02 65. The account exhibited on this folio is based upon transactions recorded upon the preceding folio, The entry given to John Bruce in the settlement of our personal account. transactions recorded upon the preceding folio. The entry 66. A person keeping a Dr. and Cr. account with Bills Receivable and Bills Payable, can, by periodically balancing these accounts, ascertain what amount remains unpaid on the vbligations he holds against others, and whether this sum is increasing or lessening from time to time; also, his own indebtedness on account of notes and other bills payable, and whether it is increasing or diminishing in amount: QUIEST. 65. Upon what trans;actions is the account here presented based? - 66 What can a person keeping such an account at any time ascertain? 5* 63 GENERAL BOOK-KEEPING. GENERAL SETTLEMIENT. 67. A General Settlement shows how a )erson stands with the world, or with all persons with who., he transacts business, taken collectively. It is made by taking an inventory of one's property, to the fair value of which he must add the sum of the balances due him from others in the settlement of his personal accounts, and the balance due him on bills receivable. From the total amount of these he must deduct the sum of the balances due others in the settlement of his personal accounts, together with the balance that may become due from him on bills payable. The difference of these amounts will evidently represent his exact standing with all persons with whom he has business relations. 68. Such general settlements should be made at the end of each year, immediately after one's annual settlements take place. By comparing the result of each general settlement with those of preceding ones, persons can readily see how much they have gained or lost during the past year, or in any given number of years. But without such a general settlement it is impossible for persons engaged in an extensive debit and credit business to possess any definite knowledge of their exact standing with the world. 69. No one who has any adequate regard for his own pecuniary interests, and for his reputation as a business man, should fail to make such a settlement at the close of every year's business. In the light of such facts as would thus be thrown upon one's business, ultimate success is almost certain; while, if left to grope his way as it were in the dark, he not only jeopards success, but seems even to court a failure. QUEST. 67. What does a General Settlement show? How is a General Settlement made? - 68. Wlhen should such a settlenient te made? How can persons ascertain what they have gained or lost during the past year, or in any number of years? Can persons possess any definite knowledgre of their standing with the world without such general settlemuents? - 69. What is said of such settlements in connection with one's success or failure in business 54 MEMORANDUM BOOK. 70. When a person's indebtedness exceeds what he pos. sesses and what is due him, taken together, he is insolvent, and is sometimes said to be worse than nothing. MEMORANDUM BOOK. 71. This book, whose name indicates its general character, is second in importance to the Ledger only. In it should be entered every thing of importance relating to a person's business that does not properly belong to the Ledger. It will often contain agreements, the carrying out of which will require frequent entries in the Ledger, as is illustrated in the case of John Bruce, whose account has already been given at pp. 32d and 33d. A memorandum of my agreement with him is given in the following Memorandum Book, under date Jan. 12th, 1860. 72. The Memorandum Book should commence with a general inventory of one's property. It should contain memorandums of agreements and of contracts of various kinds. It should not only contain a general statement of one's business affairs, but in it every important particular relating to his business which he ought himself to remember, or which should be known to his legal representatives, should be carefully recorded. 73. All business engagements of importance which you make, to be fulfilled hereafter, should be carefully recorded in this book at the time they are entered into; and when they are met, a brief entry should be made in the space left at the right, stating the facts. Where the engagement is simple, as in the case of my contract with Dr. J. Goodman, made March 16th, and promptly fulfilled, it is not necessary QUEST. 70. When is a person said to be worse than snothing? — 71. What is said of the importance of the Memorandum Book? What should be entered in it? - 72. With what should this book commence, and what should it contain? -73. MWhen should engagements be recorded? When met, what entry should be made? When may the entries relating to an agreement be made in the Cash Book only, and when should they be made in one's personal account? f55 GENERAL BOOK-KEEPING. to open a personal account with him in the Ledger. It is sufficient to debit Cash with the amount received of him. But in case the contract is more complex, and requires several entries to be made at different times, as is exemplified in my agreement with Jacob Merchant, made Nov. 10th, it becomes necessary to open a personal account with him in the Ledger, where all transactions relating to the contract should be faithfully entered. 74. Agreements should generally be made in writing, and especially when much time is to elapse before their fulfillment, or when they are in any degree complex. When this is not practicable it is desirable to make agreements in the presence of witnesses, as in case of the engagement to furnish wood, entered into Dec. 1st. In such cases the memorandum should be made as soon after the agreement as practicable, while all the particulars are fresh in the memory. 75. The Memorandum Book should be frequently reviewed to see what contracts, if any, remain to be fulfilled, when the proper entries should be made opposite such as have been performed. In cases like that entered under date Dec. 4th, the reserved space may be filled at the time the entry is made. It will generally be advisable, and especially in case your circumstances are much changed, to make out a general inventory of your property at the commencement of each year. 76. In case of a limited business, the MIemorandum Book, like the Cash Book and Bill Book, may be kept in the Ledger; but it will generally be preferable to keep it in a separate book, after the manner of the one hereto annexed. QtrEST. 74. When should agreements be made in writing? When not in writing, how may they be made?- 75. Why should the Memorandum Book be frequently reviewed? How often should a general inventory be made? - 76. How should the Memorandum Book be kept? 56 MEMORANDUM BOOK. GENERAL INVENTORY OF MY PROPERTY. January 1st, 1860. 77. Value of Farm, including Buildings and Fixtures. 4400.00 Value of Timber Lot... 850.00 do. Teams and Agricultural Implements... 475.00 Stock of Cattle.. 875.00 do. Sheep..... 500.00 The increase of Cash on hand...... 80.75 my property since Note against Peter York.. 84.00 Jan. 1st, 1859, has do. do. Ira Butts... 15.75 been $450.81. Wm. Williams owes me on Acct. 84.00 My business is in Oren Olds do. do. 15.00 a more prosperous Total Value of Property..$7379.50 state than ever before, for which I I Owe as Follows: have great reason On Timber Lot.. 150.00 to be thankful. J. Olds on Note.. 14.75 H. Brown on Acct.. 12.50 O. Hyde do.. 2.25 179.50 Net Capital this Day.. $7200.00 4th. Engaged to furnish J. Bronson with 10 May 1st, engagelbs. of Butter a week for family use till ment fulfilled and MIay 1st, for 15 cents a pound, to be paid new one entered for in cash as delivered. into this day. 6th. Commenced trading with H. Van Allen, who is to take my Wheat at cash price Contract fulfilled when delivered; likewise the crop now and account settled, on the ground. For particulars see writ- Dec. 29th, 1860 ten agreement of this date. 67 GENERAL BOOK-KEEPING. January 12th, 1860. John Bruce commenced work on farm this day, for 8 months, on conditions fully Settled Sept. 12th, set forth in our written contract. For the and gave my note to first three months I am to give him $10 balance for $29.25, per month, and for the remaining 5 months at sixty days. $11 per month. I am to give him what Paid note Nov. store pay he wants, from time to time, 12th. Bruce wishes never exceeding his earnings, and to give to work for me next him my note on settlement for any balance season. that may remain due, payable by the mid- (See Arts. 36& 65.) dle of November next. Mar. 16th. Engaged to furnish Dr. J. Goodman All delivered and with 95 pounds of Maple Sugar, to be paidfor, April 20th. paid for on delivery at 12 cents per pound. April 15th. Agreed with James Underhill to plant All obligations sixteen-acre lot (No. 7) to corn, on con- satisfactorily met ditions fully set forth in contract this day Nov. 10th, 1860. made. May 1 st. Contracted to supply J. Bronson with Butter for family use till Oct. 1st, at 12 cents per pound. I have also agreed to Contract fulfilled let him have all the Cheese from my dairy, Nov. 1st, 1860. as the same shall become merchantable, to be paid for on delivery, at $6 per 100 lbs. 14th. Engaged to put sixteen tons of hay, well Engagement met cured and in good condition, into Stephen and pay received WVakeland's barn by the 15th of July, to Sept. 1st, 1860. be paid for 1st Sept. at $7.25 per ton. 58 MEMORANDUM BOOK. June 7th, 1860. Employed Harriet Benson to do house- Wages paid and work for 13 weeks, at $1.25 per week. she left, Oct. 9th. - ----- Sept. 15th. Harriet Ann has this day entered upon -her duties as First Assistant in the Union Succeeded well. School, at $15 per month, or $45 per Wages paid Jan 1, quarter of twelve weeks. 1861. Henry and Frances have this day They left school commenced attending the Union School March 1st, 1861. for the winter term. Nov. 10th.. Purchased groceries for the winter of Jacob Merchant, to whom I have con- All engagements tracted 800 bushels of corn at 40 centsldischarged. Nov. per bushel, the balance -due me to be 20th, 1860. paid in cash when the full amount is delivered. Dec. 1st. Engaged to furnish Ira Wilson with 20 cords of Hickory, at $1.50 a cord, to Obligations met. be delivered at his house by the 15th of April 12th, 1861. January, and to be paid for by the 10th of April. Present, Hiram Wilson and Jacob Townsend. 4th. Mill-dam carried away by a freshet, Loss $140.00. and mill much injured. GENERAL BOOK-KEEPING. EXAMPLES FOR PRACTICE. FIRST FORM OF ACCOUNTS. 78. Examples for Practice are introduced into this work to enable the pupil to reduce to practice the knowledge of Book-keeping which he has already acquired. Each example in the First Form of Accounts consists of several transactions with the same individual, which, taken together, constitute a separate account, that should be opened, conducted, and closed, as in the case of examples already given. 79. For- the purpose of solving these examples, the pupil should procure the necessary quantity of paper, ruled according to the instructions given at the 25th page, (Art. 28;) or he may make the perpendicular rulings himself. If the computations are correctly made, and the transactions are rightly entered, the last entry in the account will agree with the answer given after the last transaction in each example. 80. After each example has been solved, and the account has been accurately made out and properly balanced, the pupil will do well to copy his work neatly into Account Book No. 1, which has been prepared to accompany this volume, or into some other suitable book provided for that purpose. EXAMPLE I. 81. This example consists of a series of transactions between the Book-keeper (each pupil may suppose himself or herself the person) and Asa P. Leonard, a country merchant. NOTE. The Student will do well to carefully review the suggestions addressed to him on the 7th page before proceeding further. The young Teacher, also, may be aided by the suggestions addressed to him on the 9th page. QUEST. 78. Why are examples for practice introduced into this work? Of what does each example consist, and how should it be treated? - 79. What suggestion is given for the pupil? How may you know whether the computations are correctly made, and the transactions rightly entered? - 80. What suggestion is made in rela. tion to the use of Account Books? - 81. Of what does the first example given in the first form of accounts consist? What may each pupil suppose himself? 60 EXAMPLES FOR PRACTICE. Transaction 1. Jan. 4, 1860. I have sold Asa P. Leon. ard one quarter of Beef, weighing 150 lbs. for five cents a pound. I have received in partial payment 2 lbs. of Black Tea at 70 cents a pound; 4 lbs. of Coffee at 14 cents a pound; and 25 lbs. of Brown Sugar at 10 cents a pound. Tr. 2. Jan. 25. I have bought of Asa P. Leonard three gallons of Molasses at forty-four cents a gallon. Tr. 3. Feb. 10. Sold him 40 lbs. of Pork worth eight cents a pound. Received of him forty dollars in Cash. Tr. 4. Feb. 15. I have sold him fourteen bushels of Corn at forty-five cents a bushel. Tr. 5. May 10. I have plowed his Garden, for which l am to receive one dollar and seventy-five cents. Tr. 6. May 15. I have sold him eighteen bushels of Potatoes at thirty-five cents a bushel. Tr. 7. June 12. Sold him 250 lbs. of Wool at forty cents a pound. Received of him 18 yards of Calico at 15 cents a yard, and three papers of pins at five cents each. Tr. 8. July 12. Have done two days' Work with Team, for which I am to receive one dollar and seventy-five cents aday. Tr. 9. Nov. 1. I have pastured his Cow fourteen weeks, for which he is to pay me 20 cents a week. Tr. 10. Dec. 4. I have this day finished drawing him twenty-four cords of Beech and Maple, for which I am to receive one dollar and fifty cents a cord. I have bought of him one pair of Kip Brogans for $1.25; 18 lbs. of Rice at six cents a pound; 9 lbs. Loaf Sugar at 14 cents a pound; and 9 yards of Merrimack Sheeting at 9 cents a yard.,Tr. 11. Dec. 29. I have this day settled with him and received the balance due me in Cash. What will be my last credit entry? Ans. $114.32. NOTE. The solution of this, example is given on the 6th and 7th pages of the Key. To find the solu:tion cf any other exanlple, look, as in this case. immediately under the title of the account, in the Key, for the page or pares upon which the example is recorded in the Book keeping, which are there given in the same type with this Note. 6 4 61 GENERAL BOOK-KEEPING. EXAMPLE II. 82. This example consists of a series of transactions with 0. D. Knowlton, a saddle and harness maker. Transaction 1. Jan. 4, 1860. Sold O. D. Knowlton eight bushels of Potatoes at thirty-five cents a bushel, and four bushels of Corn at forty-two cents a bushel. Tr. 2. Feb. 10. Sold him ten bushels of Potatoes for thirty-five cents a bushel, and twelve bushels of Wheat at eighty-seven and a half cents a bushel. Tr. 3. May 1. Sold him sixteen pounds of Butter at twelve and a half cents a pound. Bought of him one set of Double Harness, valued at thirty dollars. Tr. 4. May 6. Sold him fourteen bushels of Corn, for which he is to pay me forty-five cents a bushel. Tr. 5. June 10. Sold him four bushels of Potatoes at thirty-five cents a bushel. Also, bought of him one Brass Plated Single Harness, at thirty-five dollars. Tr. 6. July 2. Bought of him one Saddle, Bridle, and Martingale, the whole for eighteen dollars and fifty cents. Tr. 7. July 10. I have sold him ten tons of Hay at four dollars and twenty-five cents a ton. Tr. 8. Sept. 25. I have pastured four Cows for him ten weeks, for which I am to receive twenty cents a week for each Cow; also, one Horse nine weeks, at twenty-five cents a week. We this day settle, and r pay him the balance due him in Cash. How much do I pay him? Ans. $2.57. EXAMPLE III. 83. This example consists of a series of transactions with Isaac Mitchell, who keeps a boot and shoe store. Transaction 1. Jan. 1, 1860. I have bought of Isaac QUEST. 82. Of what does the second example consist?- 83. Of what does the third example consist? 62 EXAMPLES FOR PRACTICE. Mitchell one pair of Kip Boots for three dollars, and one pair of Buffalo Over Shoes at two dollars and fifty cents. Tr. 2. Jan. 10. I have sold him two and a half dozen IIens' Eggs at fourteen cents a dozen. T'r. 3. Feb. 10. Have sold him four pounds of Butter at 15 cents a pound, and two bushels of Wheat at 75 cents a bushel. Have bought of him one pair of India Rubber Over Shoes for $1.25, and one pair of Buckskin Mittens for 75 cents. Tr. 4. March 4. Have sold him one quarter of Beef, weighing 175 lbs., for 5 cents a pound. Have bought of him one pair of Congress Gaiters for $3.00; two pairs of Misses' Gaiters at $1.25 each; and two pairs of Children's Gloves at 15 cents a pair. Tr. 5. May 14. Have sold him 18 lbs. of Wool for 30 cents a pound, and 14 lbs. of Butter at 11 cents a pound. Bought of him two pair of R. R. Jenny Linds at $1.25 a pair; one pair of Enameled Gaiters at $2.50; and six Linen Handkerchiefs at 60 cents each. Tr. 6. June 5. Have bought of him two pairs of Boys' Suspenders, at 15 cents a pair, and three pairs of Mixed Half Hose at twenty cents a pair. Tr. 7. June 10. Have bought of him one Leghorn Hat for $1.50; two pairs of Calf Buskins for $1.00 a pair; and three pairs of Black Cotton Hose at 25 cents a pair. I have this day settled my account with Mitchell and paid him the amount due. What was it?.Ans. $8.91. EXAMPLE IV. 84. This example exhibits a Sheep and Wool Account. In this account the cost of the sheep, and every thing paid out on their account, should be entered on the Dr. side. On the Cr. side of the account should be entered every thing that QUEST. 84. What does the fourth example exhibit? 63 GENERAL BOOK-KEEPING is received on account of the sheep, including the value of wool on hand, surviving sheep, and lambs. Transaction 1. June 1, 1859. I have bought one hundred and sixty Sheep at one dollar and twenty-five cents a head, for which I have paid the cash. Tr. 2. Dec. 15. The Sheep have been in pasture since their purchase for six and one half months. Pasturing is estimated at three dollars a month for one hundred Sheep, and at the same rate for any greater number. Tr. 3. March 15, 1860. The Sheep have been fed on hay for three months. Feed and care are estimated at $12.00 a month for one hundred Sheep, and are computed at the same rate for a greater number. Tr. 4. June 1. The Sheep have been in pasture since MIarch a5th, at the rates specified in the second transaction. Washing and shearing have cost me at the rate of $6.00 for 100 Sheep.* I have cut from the flock six hundred pounds of Wool worth forty cents a pound. There are one hundred and fifty-two old Sheep living, worth one dollar and twentyfive cents a head, and sixty-four Lambs, worth seventy-five cents each. What must be entered on the Dr. side in closing the account, as the profit on one hundred and sixty Sheep for one year? Ans. $153.60. EXAMPLE V. 85. The fifth and sixth examples consist of a series of transactions with Henry Webster, a bookseller and stationer. The account, which was settled July 10th, was reopened the 10th of September. If the sixth example is entered on the same folio with the fifth, the name of Henry Webster * This account should, under this date. be debited with the interest on the cost of one hundred and sixty sheep for one year. which is computed at seven per cent. QUEST. 84. What should be entered on the Dr side of this account? What on the ir: side? - 85. Of what do the filth and sixth examples consist? 64 EXAMPLES FOR PRACTICE. need not be written the second time, but the account may be reopened, after the manner of the continuation of the account with John Martin, as given at the 42d and 43d pages. Transaction 1. Jan. 1, 1860. I have sold Henry Webster 15- lbs. of Butter for 14 cents a pound, and 25 lbs. of Cheese at 8 cents a pound. I have bought of him one Family Bible at $3.00; one Webster's Dictionary at $3.50; and one copy of Mayhew on Education for $1.00. Tr. 2. Jan. 5. Sold Henry Webster forty pounds of Butter at fourteen cents a pound. Tr. 3. Jan. 10. Bought of him one Thomson's Higher Arithmetic for 75 cents; one Smith's Arithmetic for 50 cents; and two Tower's Intellectual Algebra, at 37~ cents each. Tr. 4. June 4. Sold him ten pounds of Linen Rags at four cents a pound. Bought of him four quires' of Writing Paper at 20 cents a quire; two Tower's Gradual Reader at 25 cents ~Oh; and two copies of Webster's Spelling Book at ten cents each. Tr. 5. July 1. Sold him 10 pounds of Butter at 10 cents a pound, and 4 doz. Hens' Eggs at 8 cents a dozen. Bought of him one Wells' Grammar at 38 cents, and two copies of Thomson's Practical Arithmetic at 38 cents each. Tr. 6. July 10. Settled and paid the amount due him in cash. How much was it? Ins. $0.65. EXAMIPLE VI. 86. This example consists of a series of transactions with Henry Webster, the bookseller and stationer named in the last preceding example. (See Art. 85.) Transaction 1. Sept. 10, 1860. Sold Henry Webster 25 bushels of Potatoes at 30 cents a bushel, and ten pounds of Butter at 12~ cents a pound. Bought of him two quires QUEST. 86. If the account with an individual is settled and balanced, and subse. quently reopened on the same folio, is it necessary to write his name the second time 6* 65 GENERAL BOOK-KEEPING. of Writing Paper at 25 cents each; one Ackerman's Natural History for 50 cents; and one Day Book and one Ledger, each containing five quires of paper, at 34 cents a quire. Tr. 2. Nov. 1. Bought of him one Thomson's Higher Arithmetic, one Davies' University Arithmetic, and one Perkins' Higher Arithmetic, at seventy-five cents each. Tr. 3. Nov. 10. Bought of him one Smith's Astronomy for seventy-five cents, and two copies of Guernsey's History of the United States at sixty-two and a half cents each. Tr. 4. Dec. 12. Finished drawing twenty cords of Beech and Maple at two dollars and twenty-five cents a cord. Tr. 5. Dec. 15^ Bought 4 quires of Writing Paper at 20 cents, and one Sons of Temperance Offering for $2.25. Tr. 6. Dec. 20. Bought one North American Second Class Reader for 50 cents; one Ivory Folder for 19 cents; and one Box of Wafers for six cents. Settled, and received th3 balance due me in Cash. How much was it? Ans. $41.30. EXAMPLE VII. 87. The seventh example exhibits a Pork Account, and the eighth a Beef Account. The entries are to be made according to the principles stated under the fourth example, and more fully elucidated under the account with a Wheatfield, given at the 34th and 35th pages. (See Arts. 39 and 84.) Transaction 1. Sept. 10, 1860. I have bought forty-five Hogs weighing 9856 lbs. at three cents a pound. Tr. 2. Sept. 15. I have bought 17 Hogs weighing 4180 lbs. at 2g cents a pound. I have bought for their feed 900 bushels of Corn at forty cents a bushel. Tr. 3. Oct. 25. Paid six cents a bushel for moving and brinding 280 bushels of Corn, to be used for feed. QUEST. 07. What do tho seventh and eighth examples exhibit? In these and.samlar acc,unts, ho' r are wo to determine what transactions to enter on the Dr. and that on the Cr. side of tho account? 66 EXAMPLES FOR PRACTICE. Tr. 4. Dec. 10. The expense of slaughtering sixty-two Hogs may be estimated at seventy-five cents each. Tr. 5. Dec 11. I have laid by for family use 750 lbs. of Pork which is worth five cents a pound. Tr. 6. Dec. 12. The expense of marketing 62 Hogs is estimated at 20 cents each. I have sold 18,650 lbs. of Pork for five cents a pound. What has been the profit on fattening sixty-two Hogs? Anso,123.67. EXAMPLE VIII. 88. This example exhibits the particulars of z Beef Ac. count. (For instructions see Arts. 39 and 84.) Transaction 1. July 20, 1859. Bought twenty-one Yokc of Oxen at sixty-eight dollars a yoke. Tr. 2. Aug. 4. Bought 15 Cows at twelve dollars a head. Tr. 3. Aug. 10. Bought 22 Cows at $12.50 a head. Tr. 4. Aug. 20. Bought 23 Steers at $20.00 head. Tr. 5. Nov. 1. The pasturing up to this time is estimated at eleven weeks for all of the cattle, (some have been kept longer and others not so long,) and at twelve cents a week per head. They have up to this time been fed one hundred loads of pumpkins worth 50 cents a load. Tr. 6. Feb. 1, 1860. Have fed one hundred tons of hay worth four dollars and fifty cents t ton; also 1800 bushels of corn worth thirty-five cents, and have paid for grinding the same five cents a bushel. IIave this day sold the whole, at the following prices: Twenty-one yoke of Oxen, each Ox weighing 980 lbs., at five cents a pound; thirty-seven Cows at an average weight of 600 lbs. for four and one half cents a pound; and twenty-three Steers weighing 700 lbs. each, at five cents a pound. What has been the profit on fattening Beef? Ans. $164.36. NOTEr For the advantages attendant upon keeping this class of accounts see Arts 39 and 40. See also the Note on the 71st page. 67 GENERAL BOOK-KEEPING. EXAMPLE IX. 89. This example consists of a series of transactions with F. M. Granger, a saddle and harness maker. Transaction 1. Jan. 4, 1860. Bought of him one common one-half tug Harness for $16.00; three common Halters at 75 cents each; and two common Bridles at 75 cents each. Tr. 2. Jan. 10. Sold him ten cords of Wood for $2.25 a cord, and 18-bushels of Potatoes at 30 cents a bushel. Tr. 3. Jan. 25. Sold him 20 lbs. of table Butter for which he is to pay me fourteen cents a pound. Tr. 4. Feb. 10. Sold him eighteen bushels of Wheat,at one dollar and thirty-eight cents a bushel. Tr. 5. Feb. 26. Have this day delivered to him 25 lbs. table Butter at fifteen cents a pound. Tr. 6. March 4. Sold him 2 tons of Hay at $4.50 a ton. Tr. 7. March 22. Have this day delivered to him 10 bushels of Potatoes at thirty-five cents a bushel. Tr. 8. April 10. Bought of him one common Saddle at $7.00; one quilted Saddle at $25.00; and one pair of Martingales at seventy-five cents. Tr. 9. June 6. Bought of him one Buggy Harness, black trimmings, at $20.00; one common Single Harness for $13.00; and two Bridle Halters at $1.20 each. Tr. 10. June 10. Sold him 10 bushels of Wheat at one dollar and forty cents a bushel. Tr. 11. July 2. Bought of him one Plated Buggy Harness for $25.00, and one light Double Harness with Turrets and Hooks, for $30.00. Have done for him four days' work with team, worth $2.00 a day.'~ Tr. 12. July 24. Have pastured two Cows for him 12 weeks, at 20 cents per week for each Cow. Tr. 13. Nov. 15. Have had Collars repaired for thirty. eight cents, and bought a Throat-latch for twenty cents. 68 EXAMPLES FOR PRACTICE. Tr. 14. Novo 25. Have furnished him 10 bushels of Wheat at $1.38 a bushel-; 80 lbs. of Butter at 14 cents a pound; and 75 lbs. of Cheese at 7 cents a pound. Bought of him one Hard Leather Trunk for twenty dollars. Tr. 15. Dec. 1. Sold him 4 tons of Hay at $5.00 a ton. Tr. 16. Dec. 20. He has trimmed my Buggy for which I am to pay him $18.00, and repaired a Buggy Harness for $2.25. I have bought of him one Long Tug Harness for $24.00, and one Bridle Halter for $1.20. Tr. 17. Dec. 30. Have this day settled with him and paid him $10.09 in Cash, and given him my Note to balance, at thirty days. What was the face of the Note? Ans. $50.00. EXAMPLE X. 90. This example relates to a Field of Oats of Five Acres. The account is kept in all respects like that with a Wheatfield, given at the 34th and 35th pages. (Art. 39.) Transaction 1. April 20, 1860. Have spent 5 days with team in plowing for oats. Labor is worth $2.00 a day. Tr. 2. April 26. Have furnished 18 bushels of Oats for Seed, worth 31 cents a bushel; and have devoted three-fourths of the day to sowing the same, labor being worth $1.00 a day, Tr. 3. April 27. A boy and team have been occupied two days in harrowing in oats, at $1.50 a day. Tr. 4. July 20. Have devoted five days to harvesting field of oats, which is worth $1.25 a day. Tr. 5. Sept. 22. Have this day finished threshing 200 bushels of oats, the entire amount raised from the field. Threshing costs six cents a bushel. Tr. 6. Oct. 26. Have devoted three days to marketing 200 bushels of oats, which, including the use of team, is worth three cents a bushel. The crop has been raised on land worth $20.00 an acre, and has required the use of it one QUEST. 90. To what does the tenth example relate? How is the account kept? 69 GENERAL BOOK-KEEPING. year, money being worth 7 per cent. per annum. Received for the oats this day sold; 25 cents a bushel; retained straw for fodder, worth $5.00; and received $3.00 for straw sold to the upholsterer. What profit on this Field of Oats? Ans. $7.42. EXAMPLE XI. 91. This example exhibits an account with a Wheatfield of Sixty Acres. The value of land and the rate of interest are the same as stated in the last example. Transaction lo June 25, 1859. Have finished plowing the field of sixty acres, which was worth $1.75 an acre. Tr. 2. July 20. Have finished harrowing the field, which was worth thirty-three and one-third cents an acre. Tr. 3. -Sept. 10. Have finished the cross-plowing, which was worth one dollar and twenty-five cents an acre. Tr. 4. Sept. 15. Have furnished 90 bushels of seed wheat, which was worth 75 cents a bushel. Sowed the field, which was worth 10 cents an acre; and harrowed after the sowing, which was worth 75 cents an acre. Tr. 5. July 10, 1860. Have this day finished cradling, binding, and shocking the sixty acres of wheat, which was worth one dollar an acre. Tr. 6. July 14. Have finished drawing into the barn, which was worth thirty-three and one-third cents per acre. Tr. 7. Aug. 1. Have paid 10 cents a bushel for threshing. The field yielded fifteen hundred bushels of wheat. Tr. 8. Aug. 15. Marketed 1350 bushels, the time and trouble being worth 2 cents a bushel. The value of the land per acre, and the rate of interest as already stated. Kept for use on the farm, one hundred bushels of seed wheat, worth 75 cents a bushel >>reserved for family use 50 bushels, worth 75 cents a bushel; and sold, at the same price, 1350 QuEsT. 91. what account is exhibited in the eleventh example? What was the value of the land occupied, and what the rate of interest charged for its user 70 EXAMPLES FOR PRACTICE. bushels. Sold $20.00 worth of straw to the paper-makei and kept $10.00 worth for fodder. What has been the profit on this'field of wheat? Ans. $495.59. EXAMPLE XII. 92. This example exhibits an account with a Potato Field of Twenty Acres, the land being worth thirty dollars an acre; interest at 7 per cent. (See Art. 39.) Transaction 1. lMay 1, 1860. The plowing of the twenty acres for potatoes was worth one dollar and fifty cents an acre. Tr. 2 May 10. Have furnished 225 bushels of potatoes for seed, which were worth 30 cents a bushel. The planting -ost one dollar and fifty cents an acre., Tr. 3. June 25. I have spent ten days with boy and horse in plowing out potatoes, which was worth $1.25 a day. I have also paid for thirty days' work in hoeing, at seventyfive cents a day. Tr. 4. Nov. 1. The digging required 70 days' labor, worth 75 cents a day; the marketing required 10 days with team, at $2.00 a day; apd the value of the land and the rats of interest as already stated. Sold 2450 bushels of potatoes for 2.5 cents a bushel; used 200 bushels in fattening hogs, worth 15 cents a bushel; and reserved 600 bushels for home use, worth 25 cents a bushel. What has been the net profit on this Potato Field for one year? Ans. $515.50. NOTE. During the nine years the former editions of this work have been before the public, the author has received many connmunications from practical Farmlers, and from the officers of Agricultural Societies, assuring him of the numerous and great advantages they believe to have resulted from the introduction of the foregoing Examples for Practice; and as he has also been many times assured of the lively interest with which pupils generally engage in their solution, le has retained them almost unchanged in the present revised edition. Similar features have likewise been incorporated into subsequent forms of account. QUEST. 92. What does the twelfth example exhibit? What was the value of thl land, and what the rate of interest? What net profit on this crop? 71 GENERAL BOOK-KEEPING. SECOND FORM OF ACCOUNTS. 93. In every form of keeping accounts the principle is the- same. The Secondc Form of Accounts differs from the First in but few particulars. In the second form there are two sets of money columns on each page, while in the first form there is but one set on a page. In the second form, also, the debits and credits are both kept on the same page, and entered in the order of their occurrence, the debits in the left-hand set of money columns, and the credits in the righthand set. 94. On the next page is the account with Henry Van Allen, given from the 42d to the 45th pages, (which see,) here arranged according to the provisions of the Second Form of Accounts. This method requires less space for an account than where two pages are employed, and especially where there is a considerable inequality in the number of entries on the two sides of the account; but there is a greater liability to make mistakes in entering the amounts in the correct set of money columns. 95. The First Form of Accounts is adapted to the wants of farmers generally, and of persons who have but a limited amount of business to transact. The Second Form is often used by mechanics and physicians, and by merchants doing a small business. But the Third Form is better adapted to the wants of persons extensively engaged in any of the foregoing employments. And Double Entry will often be found preferable to either, and especially in a complicated business. QUEST. 93. Is the principle the same in every form of accounts? In what particulars does the second form of accounts differ from the first - 94. What account already given is here arranged according to the provisions of the Second Form of Accounts? What are the advantages, and what the disadvantages, of this method? — 95. To whose wants are the different Forms of Account adapted, and by whom are they used? 72 X~en?~ann n. 9; if 60. I C d.' CO law, d'9 7 26 &.o. o6a cd4/- 41.00 9 00 // // // f2- "/ C ~t~zf2.30 5 5 "// 0 4 20 o ee'keae.75 15 00 &2 4f f 40 iJ. ofniJw (MYfit.06S 3 20 r / /O 30O U @e&. 10 3 05 "f I // I" 10 /,at 340 "// I"/ 2er gd-..1,e, 9i C. 9 A,~Z. f/Rer,.56 2 24 // // /''' / /~6t G.2o 30 "2ap {0 ( / 59 S.37k 75 ""/ "30 /o. G,'.1/ 3 30 /'/ // 14 eg. a/@et9; gi.14 196 e 4 ~/ 2 ggz /4.3A/M 63 10 "e0 te sjeiowns (en. 35 3 501' Wa s j24 oo 2.'e tfyam.31 7 4 enr1 "4 // h acafcount 3.00?1 00 e il "eev e Y oz- sch ca nes.25 29 U/ II i/ m0 I y/ze G12 25 / 154 y90 3 % /ae. 97 7fv 30 vc. 29 "'/i ~if e'o 6a3rae / _ 57'.Oa _ 94 7 94..00 IJ. _ By referring to the remarks made upon this account at the 44th and following pages, the learner will be prepared to answer the subjoined questions. (Arts. 50 and 51.) QuEsT., 95. What should the books of the Creditor specify? What of thle last Dr. entry in the account with H. Van Allen? May the Debtor give credit in his books per till received t In such cases what should be done with the bill? Why should the items sold be specified in the books of the Creditor, when they may be entered Der bill in the books of the Debtor? What rule is given for making Dr. and Cr. entries? 7 73 GENERAL BOOK-KEEPING. ACCOUNTS CURRENT. 96. When accounts are kept by the Second Form, ACCOUNTS CURRENT, which were treated of at the 48th page, may be made out in a corresponding manner. The account of George Graham with James Armitage, there given, is again presented below, in a manner corresponding with the method of keeping accounts by the Second Form. Q4 4ce'. wtd,7aeM, h CC3. ae. lo o0 3 2fon Gase,.50 1 50 // // a2 gad C glk aC eddcs 50. "X 15 Fd. C~ico..15 2 25,, //,//,~, /lne.20-o 50,,/ /1,Aew, za. n.. 0 0o I"/ I 10 m, 3zi..t5Z.1 10 u17O P0, 4, 4 o"...1 32 52 >/ // // d2t~7~~ mu. wl- dF.s.wnc.emaz09 0 f,/,,,, r.... o. 9 0, " Balance due'... 3 65 Cramed Gezm Aire10 2, 166 0. QUEST. 96. May Accounts Current be made out in accordance with the second method of keeping accounts? What account that has been heretofore given. is here presented in accordance with the second form of keeping accounts? 74 ACCOUNTS CURRENT. 97. This example is the same as that given at the 48th page, but differently arranged. As here presented, it is receipted by James Armitage, the merchant, per Bulkley, his clerk, June 2d, 1860. As before presented it was not receipted. 98. In this form of an Account Current, the transactions, like the entries in the Second Form of Accounts, are recorded in the order of their occurrence, the amounts in all cases being carried to the Dr. or Cr. columns, as circumstances require. 99. In consequence of the greater liability to make mis, takes in carrying the amounts to the correct set of money columns, as already intimated, the learner should be doubly careful that his entries are correctly made, until the habit of accuracy is firmly established; and then he should not relax his efforts. With the practical book-keeper, accuracy is of the first importance; for the detection of a few mistakes in an account, or even of but one mistake, tends greatly to diminish the confidence that might otherwise be reposed in him. The learner, hence, can not labor too assiduously in establishing a habit that will be of so great importance to him in all future life,whether engaged in business for himself or for others. 100. On the next page are two examples, which will sufficiently illustrate this mode of making out accounts. They are the same as those given at the 49th page, with the transactions arranged to compare with the Second Form of Accounts. Here, as before, the price and the quantity are given, and the pupil is left to carry out the amount. He should be careful to carry each amount to the right set of money columns. If the amounts are correctly entered, the accounts will exactly balance. (See instructions, pp. 7 and 9.) QUEST. 97. As here presented. how is it receipted? -98. In this form of accounts, how are the transactions recorded? To what columns are the amounts carried? In which set of money columns should the debits be entered, the right or the left? In which set should the credits be entered? — 99. Why should the learner be doubly careful in making these entries? HIow long should he thus be carefull? Should he then relax his efforts? What is said of the importance of accuracy t-100. When price and quantity are given, what should the pupil do? 75 EXAMPLES FOR PRACTICE.,Med C-:7-Awe, I __..-5 t196o. i.o e y.6. dlawned.50. I / v 6,, ~[b0.'5 /1 /'4 /J t"73/4 4....6 // /W do 9 /044 62 *23 II // 4 J G ~esoz.' 61gs.09 1M {0 fe7o 2 G agnc 9una., 3 50 // i64y 4 Go2x. zr' 6l.o, " e 00, An 6o eaztnc. 50 20 (Example 1.) - - S-n e ct. gWzXC WIc, 24a aclam, eL.z en Ae,' 1//2 60 aAZ.d..2 7-,,// ",/ //,' o. z..C — t -s I a5 1 / 00 Mao. gJ~.6& G 4#. c'c 8 ( 00 c. 2038 35 "/ 14 // "ezm.zn do. @ 95 0. 2 10 41 G6z eeo /6id, //.Qaz6,z o_/aze.. 026 r 5 1 * 6 g, 0'U2'Ceoj Meca'1eod a@ 1.75 350 SDzU Ioomez gg yeS e7 0 @ -aau a lzrn/e 4 31 7Ac. 75,, 2'Y/,e /'aca @ 25 c. 50 "// 4oc4~.~. 0 1 65 , mG, 3 Z y, O. f7/ ft O. G4.~0. S /am 1 @ ~?/Jwom 25 35 ~' {_ ~fi..atwinJ @ {2/ c. 4 5i /S 3, m~ oao. @ 20 c. 6 36 9 84 O egt> GTLe t 4. an 5 c.51G I 50 90 2' 2 o-te e Z@ e&@ 5 450 50 /' / G_ Z 7 A'Vg/... 25 /1 3 85'me0 /c 0 / c. 5 60 2 85 85 \2 o,. c t, z 1 820,,4 oaa 7Mae @.7 * 75. 700 o.20. 834 eo /.a 20 C.e @ oc. 2 0.eaezc v7'znvmanz z. 84 y 75 6 2foo/@4 2c.. S1 50 t. ~ o I! y W/o WI@. 300 84 4 60 g. 1Xo/y 9 45. I7 00 (~,, ~ Lf ~a_.....,,2g g @ S2y c 5~... 5 oo //. ~ O. l/0 7 /5 49 9ed'ey, 9e7A &A $amnes 61'd I 85 4 2 SamyJ' ~O'0d @ 1 50 2 00 35' e00 ez00 00 > 440 t. W40/1 o 0 c. /620 35 e aOaeZWke; &,zd of/ (Yww n 6 30 o//-~X o gaL. 20 00 26 30 9 97 a Wma v~~ Il 6.7 5 2 e 1.5 * *50 5.St 27z yt4%@.18 2 26' a6 " O. 40 "2,,, a. d,,4@ 5c. 4100.6 5 azsezazy, law 14,. 24 ed. Ao dA~a G92iezaz g lOc. 24 0 35' /" 2f ~'ltns /lohes @ 56c. 1 3252 o G5' 14 lad. a'g~ @l1, 5 6. 2 10 // t10. Me' 76. 70 2 6:6 0 to * a1z.. 5 18 a 4& w 20exA e7a 4 /t. @fez 1 /5c. 60a 6// 6 1i. t'Fozm a wk @ 2c. 72 "/ #,o <,anaf 4 c. 119 f 58 98 INDEX TO LEDGER D. AB M 00o9te, Am 3Q6 Blo-w4e, /P. e. S5 CDE NO la, fameW 35 F PQ G H R znmant, &umac 8S 64Aes,' S IJ S 35 K TUV L WXYZ aego. c?6 2 1 S I 42 9 940,, 9 " ~24 2 95 5 If 0 St s1550 15 50 "G:,21 /0zma4 50 / 10 " 2 3 21 1J, &o " 25 S 50 4, "0, 23521 S39,, 5 3 50 0,, 1, S t0 / I.t~u. II I I II i >,,,, 0.19/t1. 11 I 1 / 1, A 4 s// 2 51549 __,7C I~~// 27 O0 27 00 * D. B., or D. only, as here employed, stands for Day Book. 100 __ __med _1s Am.3 & ~ddo,.. /~do., 21 i2 25 104. 23 4. i 50 / 0 " 23/ 275 Jane 6, 25 70o /a 30 Balance 1 25 1150 ____ __ Inee 80 Rai nce 0125 d t.. I I/.252630 -/y |3 702 2 |2 28 O1aya 7 2. | 1 50,/ 12 /, 23 Xl4 /, 26 " 17 2< 920 J/ 26 518 Jane 80 Balance 3 02,,/,, 66 352 __/6n60 6 __ 14 42.0 4 6 __ Jclane, 26 5 n 1 30 8B0la2e s o 9* 101 // 16 Y 26.2 10 Gl1/ 51eo a 58 0 -I 14 " ~ 28n C1a65 1a1f I' 2edXX6 8 66 // 20 l 26s 2 51 13.12 NOTE. The learner should not pass from the examination of this Illustrative Example till he is entirely familiar with the mode of entering these transactions in the Day Book. posting them into the Ledger, and closing the several accounts. When he is able readily to answer the following questions, and clearly to explain the processes required, he may rest assured that his subsequent progress, if equally thorough, will be easy and satisfictory. QUEST. 136. What is the date of the last entry posted to the account of H. M. Roberts? What are the items of this entr? How is the amount of " Cash to Balance" ascertained? A * Let the learner answer the same questions in relation to the accounts of Isaac Hinman, Bronson Fisher, and N. O. Morehouse. What is the date of the last entry posted to the account of A. F. Kingsley? What are the items of this entry? What is the date of the last entry posted to the account of James Ellis? This account seems to be balanced, and the balance brought down, June 30th What is the Balance, and to whom is it due? 3 State the same particulars in relation to the account with James Sterling. What is the condition of the account of Silas Boomer? 102 EXAMPLES FOR PRA.CTICE. PROOF OF POSTINGS AND BALANCES. Day Book Drs. and Crs., June 30th, 1860. Dr. Sums. Cr. Sums. - 20 69i Ac~* ~~to Aye 2,1 (g.e40 /f // 22; i16 -6 If 22 (6 10 U,,,/ 23 S (3 2 " ", 2,,50, /, 81 1 09 /,' 24 If10,,,,/ 25 761,,,, 25,,0 // 26 2962 2611 518 Balance.. 14 89 175 62 175 62 Dr. Ledger Balances, June 30th, 1860. C6. /Ad.?z. 85 8 02 l,e &. 85 25 a Ponmze r,1. 36 138 2 Balance.. LI 89 137. Above are entered the Dr. and Cr. sums on each page of the preceding Day Book, from which it appears the Drs. exceed the Crs. $14.89, as shown by the Balance. Now, as every Dr. sum in the Day Book has been posted to the Dr. side of the Ledger, and as every Cr. sum in the Day Book has been posted to the Cr. side of the Ledger, and as, in obtaining the Ledger Balances, equal sums have in every instance been omitted from each side of an account, the difference in the sums of the Dr. and Cr. Ledger Balances should exactly equal the Day Book Balance. As this is so, we conclude the Postings and Balances of the Ledger are correct. QUEST. 137. How can you know that your postings and Ledger balances are correct} 103 GENERAL BOOK-KEEPING. RETROSPECT AND PROSPECT. We have thus far considered the three most common forms of keeping accounts by Single Entry Book-keeping. The First Form presented extends from the 24th page to the 59th,-in the discussion of which all the leading features of the science are explained and elucidated. Then follow Examples for Practice, extending from the 60th to the 71st page, in the course of which the principles taught are applied to the ordinary business transactions of life. The Second Form of keeping accounts is briefly presented on the 72d and four following pages, (the principles of the science previously taught being alike applicable to this form,) and Examples for Practice similar to the preceding are then introduced, extending from the 77th to the 85th page. These two forms of keeping accounts are adapted to the wants of persons generally, transacting a limited business of almost any kind; but the former is more especially adapted to agricultural, and the latter to manufacturing'pursuits, as has already been fully explained. In each of these two forms of accounts, the Ledger is the only account book required for use. A Third Form of recording business transactions, which is sometimes called the Mierchant's Form, is introduced on the 86th page. The principles taught are practically applied in an Illustrative Example commencing on the 90th page, and concluding with a new and reliable methed of testing the accuracy of Postings and Balances, as is fully exemplified on the last preceding page. This form requires the use of a Day Book and Ledger, and is adapted to a retail trade. In Single Entry it only remains to present appropriate Examples for Practice in the Third. Form. These completed, Commercial Calculations, the Philosophy and Morals of Business, and the Science of Double Entry, are respectively considered. QUET. 137. State the substance of the retrospect and prospect given. 104 EXAMPLES FOR PRACTICE. EXAMPLES FOR PRACTICE. THIRD FORM OF ACCOUNTS. 138. In the First and Second Forms of Account each example consists of several transactions with the same individual. (See pp. 60th and 72d.) But in the Third Form of Accounts the transactions of the day are intermingled, being entered in the Day Book at the time and in the order of their occurrence. The following examples consist of transactions with twelve persons. These transactions should be entered in the Day Book prepared to accompany this volume, after the manner of those already given in the Illustrative Example, commencing at the 90th page. This done, they should be posted into the Ledger as those were, according to the instructions given at the 88th page. (Arts. 127 and 128.) These transactions, which commence with the month of May, 1860, continue three months. 139. Each pupil may regard himself as conducting the business here recorded. The accounts with persons are entered according to the instructions given in Art. 37; the account with Cash according to those given in Art. 45; and the accounts with Bills Receivable and Bills Payable as directed in Art. 64. Several of the following transactions will require an entry to two accounts, as is indicated at Tr. 3. Sometimes a Dr. or a Cr. entry, or both, will be required, and at the same time an entry in the Bill Book, as in Tr. 2. The learner will need carefully to exercise his judgment in determining what entries are required. QUEST. 138. In the First and Second Forms of Account, of what does each example consist? In the Third Form of Accounts, how are the transactions of the day recorded? Of what do the examples for practice in this form of accounts consist? What instructions are given for entering these transactions in the Day Book and Ledger? With what month do these transactions commence. and how long do they continue? —139. Who conducts this business? What principle do we observe in keeping accounts with persons t (Art. 37.) How is the Cash account kept? (Art. 45.) IHow are Bills Receivable and Bills Payable and accounts kept? (Art. 64.) Does tlie same transaction ever require an entry to more than one account? 105 GENERAL BOOK-KEEPING. INVENTORY OF PROPERTY IN TRADE. Tuesday, May 1st, 1860. 140. Store and Ware House worth $4200.00 Merchandise in Store,. 3500.00 Cash in Safe and Bank,.. 900.00 James Sill's Note, (No. 1,) B. B. (Art. 147,) 225.00 Henry Hart. owes me on acct.,... 75.00 James Farley do. do... 60.00 Total amount of my assets,..... $8960.00 I owe as follows: Isaac Hill for Mdse. on acct.,... $260.00 Note (No. 1) to H. Smith for Mdse., B. B., (Art. 147,)..... 700.00 Total amount of my debts,.. $960.00 Net Capital in Trade,. $8000.00 141. Accounts should be opened with Cash, with Bills Receivable and Bills Payable, and with every person who owes us, or whom we owe on account, at the time of comr. mencing business. (Art. 140.) These accounts should then be debited and credited from time to time, as our business transactions shall require. We should seek to make our Account Books tell the truth, the whole truth, and nothing but the truth relating to our business. Wednesday, May 2d, 1860. Transaction 1. I have sold Henry Allen 80 lbs. of Brown Sugar at 8~ cents a pound; 4 bbls. of Rock Salt at $2.25 a barrel; and 20 lbs. of Java Coffee at 20~ cents a pound. QUEST. 140. What amount of assets have I on commencing business, and in what do they consist? What is my indebtedness, and in what does it consist? - 141. What accounts should be opened at the time of commencing business? What entries should then be made to these accounts? What should our Account Books tell? 106 EXAMPLES FOR PRACTICE. Tr. 2. I have sold and delivered: Merchandise to Job Otis to the amount of $75.00, for which he has given me his Note payable at my store June 25th, 1860. i(Bills Receivable No..2, Dr., and B. B. Art. 147.)' Tr. 3. - James Sill has taken up his Note of Jan. 1st, payable at my store this day. (Bills Receivable. No. 1, Cr., and Cash Dr.) a Friday, May 4th, 1860. Tr.-4. 4. H. Andrews has bought of me 3 bbls. of Salt at $1.25 a barrel, and 311 yds. of Sheeting at 8~ cents a yard, I have received of him 4 Hams, together weighing'70 lbs., at 14 cents a pound. Tr. 5. A. B. Lincoln has brought me 44 bushels of Corn at 45 cents a bushel, and 10 bushels of Wheat at 95 cents a bushel. He has bought of me 8} yds. of Cottonade at 24 c.; 4 lbs. of Black Tea at 60 c.; and 4 bbls. of Salt at $1.25. Saturday, May 5th, 1860. Tr. 6. I have sold to S. O. Jenkins 10 yds. of Calico at 11 ~c.; 12 yds. of De Laine at 22 c.; and 6 yds. of Franklin Drill at 25 c. He has furnished me with 18 lbs. of Butter at 201 c. per pound. Tr. 7. A. C. Morton has bought of me 56 lbs. of Crushed Sugar at 11 c. a pound, and 20.1 lbs. of Godfish at 6 c. a pound. / Monday, May 7th, 1860. Tr. 8. Nathan Powers has bought of me 2 Scythes at $1.10 each, and one Grain Cradle for $2.50. Tr. 9. I have sold John Ransom 2 pairs of Boots at $3.50 a pair;- 8 Milk Pans at 40 c. each; and 40 yds. Three Ply Carpeting at 80 c. a yard. Tuesday, May 8th, 1860. Tr. 10. I have accepted and paid in Merchandise John Cooper's Order on me in favor of John Smith for $40.00. (Art. 37.) r X 107 GENERAL BOOK-KEEPING. Tr. 11. I have bought of Henry Smith on acct. a Bill of Merchandise as per Invoice No. 1, amounting to $200.00. Tr. 12. I have paid my Note No. 1 of Feb. 8, given to II. Smith for Merchandise, mentioned in the Inventory of May 1st. The Note was for $700.00. (Bills Payable Dr. and Cash Cr.) Thursday, May 10th, 1860. Tr. 13. I have paid Isaac Hill $225.00 on acct. of Mdse. bought of him, mentioned in the Inventory of May 1st, and I have bought of a Pedler sundry articles of Mdse. amounting to $25.00, which I pay for in Cash. Saturday,Miy 12th, 1860. Tr. 14. I have sold Job Otis Merchandise as per Sales Book,* page 4, amounting to $265.00, for which I have re. ceived his Note payable in 30 days. (Bills Rec. No. 3.) Tr. 15.. The receipts. of Cash for small sales, as per Money Drawer, and not otherwise entered, have been $25.00. Tuesday, May 15th, 1860 Tr. 16. I have sold to Ellen, daughter of James Farley, on her father's account, one De Laine Shawl for $5.00, and 30 yds. of Gingham at 25 c. a yard. Tr. 17. I have bought Merchandise of Henry Smith, as per Invoice No. 2, amounting to $225.00, for which I fiave given him my Note, payable the 4th day of June next. (Bills-Pay. No. 2.) Tr. 18. O. 1H. Andrews has bought of me one Suit of Clothes for $34.00; one China Tea Set for $13.00; 32 yds. of Carpeting at 80 c.; and 6~ yds. of Stair Carpet at 60 c. * The quantity and price of the articles sold should be entered at length in the Sales Book. They are here omitted because of the space they would occupy. 108 EXAMPLES FOR PRACTICE. Friday, May 18th, 1860. Tr. 19. I have procured for S. O. Jenkins one Side. Saddle worth $20.00, and one Single Harness worth $24.00, which I furnish him on account. Tr. 20. A. B. Lincoln has purchased of me 4 Cast Steel Hoes at 75 c. each; 2 Grain Cradles at $2.25; and 4 Hay Rakes at 15 c. each. Monday, May 21st, 1860. Tr. 21, A. C. Morton has bought of me 12~ yds. of Gingham at 30 c., and 3 pairs of Cotton Hose at 28 c. I have paid his Order on me of this date for $65.00, in Mdse. Tr. 22. Nathan Powers has purchased of me 28 yds. of Sheeting at 9~ c. a yard; 5 yds. of Brown Linen at 31 c.; and 1 3 doz. Buttons at 8 c. per dozen. Tr. 23. I have sold to John Ransom 7 yds. of Checked Gingham at 30 c.; 2 pairs of Cotton Hose at 50 c.; and 2 pairs of Half Hose at 31 c. The goods were delivered to his daughter Mary. Friday, Mlay 25th, 1860. Tr. 24. I have bought of Henry Smith a Bill of Mdse. on acct., as per Invoice No. 3, amounting to $140.25; and I have paid him $150.00 in Cash on account. T-r. 25. I have sold John Cooper 30_ yds. of Brown Sheeting at 10 c. a yard, and 9~ yds. of Alpaca at 80 c. a yd. Friday, June 1st, 1860. Tr. 26. Received of Jacob Johnson $275.40 for a Bill of Goods sold him this day, as per Sales Book, p. 6. Tr. 27. I have sold Merchandise, as per Sales Book, p. 8, to John Wood, amounting to $350.60, for which I have received his Note, payable the 9th of June. (Bills Rec. No. 4.) Tr. 28. Henry Hart has bought of me one Coffee Mill at 88 c.; one pair of Kip Boots for $4.00i and 20 Seamless Bags at 25 c. each. 10 109 GENERAL BOOK-KEEPING. Monday, June 4th, 1860.' Tr. 29. I have taken up my Note to H. Smith for $225.00, this day due. (Bills Payable No; 2, and Cash.) Tr. 30. I have sold to Henry Allen 4. gallons of Molasses at 56 c., and 26k lbs. of Bar Soap at 8 c. Wednesday, June 6th, 1860. Tr. 31. 0. H. Andrews has bought of me 3 yds. of Cassimere at $1.75 a yd., and 8 yds. of Russia Sheeting at 37 c. a yd. Tr. 32. I have bought of Henry Smith a Bill of Merchandise on acet., as per Invoice No. 4, amounting to $280.00. —...- i Saturday, June 9th, 1860. * Tr. 33. John Wood has paid.his Note of $350.60, this day due. (Bills Rec. No. 4, and Cash.) Tr. 34. James Farley has;bought of me 441 lbs. of Sugai tO"10 -'c. per pound; -3 lbs.- of Saleratus -at 8 c.; and 27 yds. of CottonCCloth at 9 c. Tuesday,.Jrne 12th, 1860. Tr. 35.~: I have bought, on account, a Bill of Merchandise of Isaac Hill, as per Invoice No. 5, amounting to $275.66. Tr. 36. Job Otis has- paid his Note of $265.00, this day due. (B. R. No. 3, and Cash.) Thursday, Jzune 14th, 1860. Tr. 37. Henry Allen has bought of me 8 lbs. of Raisins at 183 c., and 41~ yds. of Sheeting at 10 c. Tr. 38. S. O. Jenkins has bought of me 8 lbs. of Java Coffee at 183 c., and 25 lbs. of Coffee Sugar at 10 c. Saturday, June 16th, 1860. Tr. 39. The receipts of Cash for small sales, as per Money Drawer, and not otherwise entered, have been $24.50. Tr. 40. I have sold to Henry Hart one barrel of Flour for $6.50, and 40 lbs. of Sugar at 9k c. a pound. 110 EXAMPLES FOR PRACTICE. Tr. 41. I have bought Merchandise of Sam Brown as per Invoice No. 6, amounting to $360.00, for which I have given him my Note, payable the 20th of July. Monday, June 18th, 1860. Tr. 42. I have received $235.50 in Cash, for Merchandise sold, as per Sales Book, p. 10. Tr. 43. I have sold a Bill of Merchandise to John Wood, as per Sales Book, p. 12, amounting to $269.50, for which he has given me his Note, payable the 2d of July. Tr. 44. I have this day settled my Book Acct. with Isaac Hill, and given him my Note at 30 days to balance. For what amount was the Note given? Ans. $310.66. Friday, June 22d, 1860. Tr.'45. A. B. Lincoln has bought of me 2 bbls. of Coarse Salt at $2.30 a barrel. Tr. 46. F. Sill presents an Order: on me drawn and signed by A. C. Morton, requesting the payment to him of $25.00 in goods, which I have accepted and paid. Monday, June 25th, 1860. Tr. 47. Job Otis has paid his Note of $75.00, given the 2d of May, and this day due. (B. R. No. 2, and-Cash.) * Wednesday, June 27th, 1860. Tr. 48. A. C. Morton has bought of me 6} yds. of Sheeting at 9 c. a yard, and -21 yds. of Cassimere at $2.00 a yard. Tr. 49. Nathan Powers has bought of me 31 yds. black Cambric at 12 c.; 2 Linen Handkerchiefs at 35 c.; and 12 lbs. of Java Coffee at 17 c. per pound. * In several instances, as in this case, parenthetical references have been made, with a view of suggesting to the learner the entries that are required. But he should how be prepared to enter his transactions without such aid; and the sooner he does so the better. 111 GENERAL BOOK-KEEPING. Friday, June 29th, 1860. Tr. 50. I have sold to John Cooper 8 lbs. of Brown Sugar at 10 c. a lb., and 12 lbs. of Candles at 14~ c. a lb. Tr. 51. I have sold to John Ransom 3 pairs of Cotton Hose at 50 c.; 2 pairs of Kid Buskins at $1.50; and 11 doz. Buttons at 6 c. Tr. 52. I have bought of Henry Hart 4 doz. Itens' Eggs at 16 c. a dozen, and 8 Hams, together weighing 160 lbs., at 12 c. per pound. Saturday, June 30th, 1860. 142. The preceding transactions having been entered in the Day Book and posted to the Ledger, according to instructions already given, (Arts. 118 to 136,) the student will test the accuracy of his postings and balances; (Art. 137.) In case the Day Book entries have been correctly made, and the Ledger postings and balances are free from mistakes, there will exist the folrowing PROOF OF POSTINGS AND BALANCES. Day Book Drs. and Crs., June 30th, 1860. Dr. Sums. Cr. Sums. The Dr. sum re- The Cr. sum resulting from adding sulting from adding all the Dr. entries all the Cr. entries for May and June for May and June will be.... $5767.43 will be.. $5054.80 Balance... 712.63 $5767.43 $5767.43 QUiZT. 142. What instruction is given in Article 142? 112 EXAMPLES FOR PRACTICE. The Dr. and Cr. sums upon the different pages of the Day Book will depend upon the number of transactions entered upon a page; but the sum total of Day Book Drs. and Crs. and the balance will be as indicated at the foot of the opposite page. As that Balance agrees with the Balance of the Ledger accounts given below, we conclude the work is right. X. creZ LAne7,,nme 30, /&6.. <;Ca 1os 051 00K z/ay{f 670 66 Abu 2ceeez(e 2~69 50e c~ ~5j72ecoz& 7 0o siderhisgt5 84 in cs y ar not 4e h 70 25 ol ev h/as way 79 6The Balance 712 63 eane ealws 9 /86 3 ~~ G-1LLm 10'9 09 53 o/P brougaht dower 1~ 1 J tf16360 64/ /16 60 64 143. If these results are obtained the student may consider his work right; but in case they are not obtained he should review his work. The closing balances should be entered under date of June 30th, to indicate the condition of the Ledger at the end of June. These balances should be brought down under date ot July 2d, (the month coming in on Sunday,) to represent the state of the Ledger accounts at thle beginning, of July. QUEST. 143. When should the work be reviewed? Under what date should the closing balances be entered, and under what date should they be brought down 10 * 113 GENERAL BOOK-KEEPING. Monday, July 2d, 1860. Tr. 53. I have taken a commission to buy Wool for Isaac Hill. He is to furnish me money to buy with, and to pay me one cent a pound for my services in buying, storing, and shipping. He furnishes me with $1200.00 now, and is to furnish me more money as I may need it. Tr. 54. John Wood has paid his Note of $269.50, this day due. (B. R. No. 5, and Cash.) Tuesday, July 3d, 1860. Tr. 55. James Farley has bought of me 2 Straw Hats at 87~ c. each, and 4 lbs. of Corn Starch at 12 c. per pound. He has brought me 190 lbs. of Wool, on account, at 40 c. a pound. Thursday, July 5th, 1860. Tr. 56. Henry Allen has bought of me one Grain Cradle at $2.50, and 2 Scythes at 88 c. each. He has brought me on account 165 lbs. Wool at 40 c. a pound. Tr. 57. Nathan Powers has bought of me 4 lbs. of Wool Twine at 16 c. a pound, and 18 lbs. of Brown Sugar at 9 c. Friday, July 6th, 1860. Tr. 58. John Ransom has bought of me 4 lbs. of Wool Twine at 16 c. per pound, and 2 pairs of Sheep Shears at $1.25 a pair. He has brought me, on account, 24 lbs. of Butter at 14 c. Monday, July 9th, 1860. Tr. 59. Nathan Powers has brought me 245 lbs. of Wool, on account, at 42 c. a pound. He has bought of me, on account, 2 Cedar Pails at 75 c. each; 10- lbs. of Sugar at 10 c. a pound; and 1 doz. Blue Plates for $1.00. Thursday, July 12th, 1860. Tr. 60. I have bought two lots of Wool for Cash; one..X EXAMPLES FOR PRACTICE. lot of 540 lbs. of O. White at 43 c. a pound, and the other lot of 600 lbs. of H. Brown, at the same price per pound. Tr. 61. I have received of Isaac Hill $1800.00 in Cash to buy'Wool with. (Transaction 53.) Tr. 62. I have received of A. B. Lincoln, on account, 250 lbs. of Wool at 44 c.; 18 lbs. of Butter at 14 c.; and 4 doz. Hens' Eggs at 15 c. Saturday, July 14th, 1860. Tr. 63. John Cooper has brought me 425 lbs. of Wool, on account, at 45 c. a pound, according to agreement. 2r. 64. 0. H. Andrews has brought me, on account, 980 lbs. of W6ol at 45 c. a pound. He has bought of me one remnant of Edging for 25 c.; 9A- lbs. of Codfish at 7 c. a pound; and 32 yds. of Calico at 15 c. Monday,-July 16th, 1860. Tr. 65. I have bought of Henry Smith, on acct., a Bill of Mdse. amounting to $475.00, as per Invoice No. 7. Tr. 66. I have bought of A. C. Morton, on account, 440 lbs. of Wool at 42 c. a pound. I have sold him 14 lbs. of Java Coffee at 15 c. a pound; 25 lbs. of Brown Sugar at 9 c. a pound; and I have paid the balance due him in Cash. How much money did he receive? Ans. $72.36. Tr. 67: James Farley has brought me 460 lbs. of Wool, for which I allow him 45 c. a pound. We settle our account, and I give him my Note to balance. For what amount is my Note given? - Ans. $202.15. Wednesday, July 18th, 1860. Tr. 68. I pay my Note, No. 4, of $310.66, this day due to Isaac Hill at the Exchange Bank. Friday, July 20th, 1860. Tr. 69. I pay my Note, No. 3, of $360.00, given to S Brown June 16th, and this day due. 115 GENERAL BOOK-KEEPING. Tr. 70. Henry Hart has brought me 196 lbs. of Wool at 40 c. a pound. We settle, and I pay him the balance his due in Coffee at 16 c. a pound. How many Ibs. of Coffee does he receive? Ans. 19k lbs. Saturday, July 21st, 1860. Tr. 71. S. O. Jenkins has sent me 450 lbs. of Wool, with the request that I place the same to his credit at 42 c. per lb., as per agreement, which I do. Tr. 72. I have bought three lots of Wool, as follows: No. 1, 680 lbs. at 40 c.; No. 2, 951 lbs. at 40 c.; and No. 3, 720 lbs. at 40. c.; for all of which I have paid the Cash. M.onday, July 23d, 1860. Tr. 73. I have bought for Isaac Hill, under my commission of July 2d, (Transaction 53,) 7281 lbs.* of Wool, for which I have paid $3080.55. I have this day sent him the WTool, with a statement of its cost, and charged him for the same, and for my services, as per agreement referred to. Tuesday, July 24th, 1860. Tr. 74. Henry Allen has bought of me 10 gallons of Molasses at 44 c., and 45 lbs. of Brown Sugar at 10 c. We settle, and I pay him the balance his due in Cash. How much money does he receive? Ans. $22.65. Wednesday, July 25th, 1860. Tr. 75. I have settled with O. H. Andrews, and paid him the money for the balance his due. How much do I pay him? Ans. $353.92. Thyursday, July 26th, 1860. Tr. 76. I have this day received a letter from Isaac Hill, acknowledging the receipt of Wool and my statement of July 23d. He expresses his entire satisfaction with the quality of Wool, and the prices I have paid, and encloses the balance my due on account, which I pass to his credit. How much money does he send me? Ans. $153.36. * 8e note on page 228. 116 EXAMPLES FOR PRACTICE. Friday, July 27th, 1860. Tr. 77. I have sold to S. O. Jenkins one Grain Scoop Shovel for $1.25, and 3 gallons of Lamp Oil at $1.75 per gallon. Saturday, July 28th, 1860. Tr. 78. I have sold a Bill of Merchandise to James Sill amounting to $254.60, as per Sales Book,. p. 18, for which I have received his Note, No. 6, payable at the Exchange Bank the 10th of August. Tr. 79. I have settled with John Cooper, and paid the balance due him in Cash. How much was I in his debt? Ans. $138.06. Monday, July 30th, 1860. Tr. 80. S. O. Jenkins has brought an order on me from Henry Smith for $200.00 payable in Merchandise, which I accept; but as he does not want his pay to-day, I make the proper entries to the accounts of the parties to the transaction. Tuesday, July 31st, 1860. 144. The preceding business has been conducted three months, and I now wish to have a General Settlement, (Art. 67,) and to determine my gain or loss for this time. For this purpose I take an Inventory of Merchandise in Stoire, (Art. 146,) which amounts to $3675.00. The value of the Store and Warehouse is the same as stated in the Inventory, May 1st. (Art. 140.) I wish to determine three things: 1st. In what my Assets and Liabilities consist; 2d. How much I am worth as appears from the Inventory and my Ledger Accounts; and,* 3d. Whether I have made or lost money during the three months I have been in trade, anZ how much. 144. For what length of time has this business been conducted? What three thms do you wish to determine? it; GENERAL BOOK-KEEPING. 145. The student should first test the correctness of his postings and balances for July, (Arts. 142 and 143.) In obtaining the Day Book Drs. and Crs. to June 30th, there was a Dr. excess of $712.63; and there was the same Dr. excess in the Ledger Balances of that date. As this Dr. excess of the Ledger Balances is carried forward and enters into the Balances of July 31st, it becomes necessary to enter the same sum at the left hand, as the Dr. Day Book Balance at the beginning of July. PROOF OF POSTINGS AND BALANCES. Day Book Drs. and Crs., July 31st, 1860. Dr. Sums. Cr. Sums. ga~e /age 80] 71268 | n. Tuintj4 @64 69 O. dsamodA4Z 65 57 0 Balance.. 601 51 9246 20 /-92-6 - 20 Dr. Ledger Balances, July 31st, 1860. Cr. Balance... 01 5 1 /206 1 #ds..20S6 91 QUUET. 145. What use do you make of the Day Book balance for June in obtain big the proof for July? 118 EXAMPLES FOR PRACTICE. INVENTORY OF PROPERTY IN TRADE. Tuesday, July 31st, 1860. 146. Store and Warehouse, worth $4200.00 Mldse. in Store, per Inventory,... 3675.00 Cash on hand, per Ledger,... 1782.01 Bills Receivable, per Ledger and B. B., 254.60 John Ransom owes me on Account,. 50.30 Total amount of my assets,.... $9961.91 I owe as follows: Bills Payable, per B. B. and Ledger, $202.15 S. O. Jenkins, on Account,.... 332.90 A. B. Lincoln, do..... 120.22 Nathan Powers, do.... 84.88 Henry Smith, do..... 745.25 Total amount of my Debts,.... $1485.40 Net Capital, July 31st, 1860,.... $8476.51 " " May 1st, ".... 8000.00 Have made in Trade,...... $476.51 The Inventory of a person's property does not strictly belong to either Day Book or Ledger. It should, however, be regularly taken and carefully entered in the Memorandum Book, where it becomes a matter of permanent record. (Arts. 71 to 77.) Inventories thus made and kept, in connection with one's account books, present a complete history of his business for a series of years, which sometimes becomes a matter of importance. QUEsT. 146. Does the Inventory of one's property belong to his Day Book or Ledger? When should it be taken, and where should it be entered? What is sala of a history of one's business? 119 el4o ed an? a No. Date. Maker's Name. Indorser's Name. N Date. Payee's Name. _Indorse'sPo. 14"/O. ow ettlement, July 31st. The same is' Bill Payable No. Date. Payee's Name. in the Bill B dook at the time Notes are 3C (29MIA( MaA. Ad oo J 7w - J // d ~aac ni7 t4 14%. At the time these Notes were received and given all of the above entries were made, except those under-the head of "1 Remarks." These were entered as the Bills were paid. Bill Receivable No. 6 is not due at the time of my General Settlement, July 31st. The same is true of Bill Payable QUEST. 147. What entries should be made in the Bill Book at the time Notes are given and reeived? What Notes entered in the above Bill Book are not due? 120 Where Payable. When due. Amount. Remarks. eA enzatdo G I1 222500 GWhn 2de /o. J' 25 75 00 6 25,4. " 1 265 00 OYa e 12 zo.o 91 9 350 60 re 9 2 26950 24v~Jey 2 &c. ~a,,vI c04 aj. iO 25,4 6'0 Where Payable. When due. Amount. Remarks. ae(z..4dW e 225.[ ea or.P~ l S 6joo S atomtf O g M 20 860100f 02 20 e. Oan A c 1e9 1 6 a//u'le No. 5. There is, therefore, no occasion for an entry to either under the head of "Remarks." When -these Notes mature the proper entries should be made under this head, showing whether they have been paid, or renewed, or otherwise dis. posed of, and how. QUEST. 147. When these notes mature what entries should be made? Does this gtatenLebt agree with your Ledger account? 11 121 GENERAL BOOK-KEEPING. AUXILIARY BOOKS. 148. It has already been stated that in the Third Form of Accounts two principal books are used. These are the Day Book and the Ledger. (Art. 117.) 149. AUXILIARY BOOKS are assisting or helping books. The most important of these are, the Cash Book, the Bill Book,' and the Memorandum Book, which have already been described; to which may be added the Letter Book, the Invoice Book, and the Sales Book. 150. The CASH BOOK is a book in which is kept an account of all moneys received, and of all moneys paid out. (For the manner of keeping the C. B., see Arts. 45 to 47.) 151. The BILL BOOK is a book in which is kept a memorandum of Notes, Bills Receivable, Bills Payable, and Bills of Exchange. (For a fuller description of the Bill Book, and the manner of keeping it, see Arts. 60 and 147.) 152. The MEMORANDUM BOOK is used for recording memorandums of various kinds, agreements, and all important particulars relating to a person's business that belong neither to the Day Book nor Ledger. (For a full description of the Memorandum Book, see Arts. 71 to 77.) 153. The LETTER BOOK contains copies of all business letters, which ought always to be written in a neat and legible hand, and to be as clear and concise as possible. By using a Copying Machine much labor may be saved in keeping this book, and at the same time perfect accuracy secured. Copies of letters thus taken afford better-evidence before a legal tribunal, than the most perfect copies made with the pen. The Letter Book should contain copies of all important business letters. QUEST. 148. What are the two principal books in the Third Form of Accounts? - 149. What are auxiliary Books? What are the most important of them? - 150. What is the Cash Book? —151. What is the Bill Book? —152. For what is the Memorandum Book used?- 153. What does the Letter Book contain? How ought letters to be written? What of a copying machine? What of evidence in courts? 122 i. I LETTER-WRITING. 154. Good letter-writing is a fine accomplishment. The following specimen is therefore subjoined for the purpose of exhibiting the date, (1,) address, (2,) body of the letter, (3,) subscription, (4,) inscription, (5,) and superscription, (6.) LETTER OF INTRODUCTION. 225, 60nz men o f letter-writing introduced D o the traits of character attributed to the person XM f youy/t &nody f2icJty, o/des cy, w4o described in this letter of introduction entitl /oe him t confidencety and edSteem ha areon d a~nomee ce traits of chracter/ y,anu attcnwve~'ntd ad a -aaen/; o/ Awo 1kwre/az/ e~esi an 4ee 44154d; andaw/ W/e maany ameyn oaaAles, ef Ac0ar, exlolf/y andi Tbyou 0o0ze1, vale wceced. No. 2.- A common Note of Hand. 7oz vadte wze;cval, 7 /zzomese to /ha ey Ia S~c~ia,, oat zev, G neyw/ ae odlwta, elm t&Za dm | /l l'iS>, 196?, wed neles( /Mon eA )(e o/ 17tteaz rt.. lntc~i;:~pn~ No. 3. A Note for Property. 6'0.00. SILzd: /7t {0,1, 160. @9zyt/y /ttez e? izia le, eQ'tromtse to olts-enzo 2/Aokw OazewX oz emk, at my $7/;zon~oioftl X'tlc/ozal a ga ood sn&e=koze'//Y4onz wou'k 2Yz0/'w. Mtccer av 0jfi5 ZouZde &Ta /oz mI c9oge, v/de 9ecetv.Ea 129 GENERAL BOOK-KEEPING. No. 5.- An Order for Money and Goods. lear G1rnd_7e, / r/ o eulf4, 4 Aoa eenn Oollaw t!i b 11 {f (For AM 0u NTo HAN D,) 1t o J (For GAo INor LOSS inTradee) I;R 111 xJ | CASH, AND ALL OTHERS | EXPENSES, O @ -= I' w PROPERTY ACCTS., _' K " ~ ~.o ~-rw INTEREST, 0 _~ 8 t - PERSONAL ACCTS., 2 I - {S % OmZ (ssvQ~r o t-mss DISCOUNT,_____I'|.' Z P BILLS RECEIVABLE, DISCOUN EXCHANGE, | I&1 o'~ BILLS PAYABLE, tE' ~~1g 1|1M cw~~~~m i;___aog_ _ _ And all Acets. indicating I___ e elg 11AND STOCK, _.. GAIN ol LOSS, I Entered according to Act of Congress in the year 1860, by IRA MAYHEW, in the Clerk's Office of the District Court of Michigan. DOUBLE ENTRY BOOK-KEEPING. 307. The form of entry we have observed in closing Ex penses, (Art. 301,) will apply to Merchandise, Interest, Stone Mill, or any other account indicating gain or loss in business, in case the sum of the Dr. entries to it exceeds that of the Cr. entries. And should the Dr. side of Profit and Loss exceed the Cr. side, the difference will go to the Dr. of Stock, and the closing entry of the Journal will be, Stock Dr., for loss in trade, to Profit and Loss. The Stock Account will appear among the Dr. Ledger Balances whenever one's Liabilities exceed his Assets, or when he owes more than he possesses. Whatever amount of property one actually possesses, above his debts, (if any,) will stand on his Ledger to the Cr. of Stock, and may be considered as a positive quantity. But when there is an actual indebtedness, beyond one's ability to pay, the amount will stand on his Ledger to the Dr. of Stock, and may be regarded as a negative quantity. 308. In the Double Entry Ledger, < as has already been intimated, stands for Journal. The ea and, which are the usual signs of Dr. and Cr. entries, are often omitted in the Ledger. When a Day Book is used, the Journal entry frequently occupies but a single line, thus: * 2 ao/waz/ X Co. ea tziS Zy-afS In such cases two columns are required at the left for post marks: the one at the extreme left for the Dr. entries, and the other for the Cr. entries. In all other respects the Posting should be conducted as from the following Journal to the Ledger. In the above Journal entry, S. C. Woodward & Co., preceding the word "to," are Dr., and Bills Payable, follow. ing it are Cr. (Art. 279.) Dr. sums are entered in the left. hand set of money columns, and Cr. sums in the right-hand set. QUEST. 307. To what will the form of entry observed in closing expenses apply? When will Stock be made Dr. in closing Profit and Loss? NWhen will Stock appear -among the Dr. Ledger balances? When mayv tock be regarded as a posative quantity, and when as a negative quantity? -308. In the Double Entry Ledger what does Jstand for? What of To and By? When are two columns required for post marks? What of posting in other respects? Where are Dr. and Cr. sums entered? 184 ILLUSTRATIVE EXAMPLE. ILLUSTRATIVE EXAMPLE. FOURTH FORM OF ACCOUNTS. 309. For the purpose of illustrating the method of opening a set of books, and the mode of. journalizing and posting transactions, but more especially for the sake of showing clearly and distinctly the method of closing a'set of books in Double Entry, the following Illustrative Example is here introduced. It can not be too carefully studied. Monday, January 2d, 1860. Transaction 1. I commence business this day with the following effects: Merchandise in Store, worth, as per Inventory, $4600.00; Casn in safe, $2500.00; two Notes, one No. 3, against John Otis for $1500.00, and the other, No. 4, against Henry Brown for $1200.00. Tr. 2. I owe Hill & Wright on account for Mdse. as per Invoice Book A, p. 8, $1350.00, and Clark & Smith, as per Invoice Book A, p. 12, $1250.00. Tuesday, January 3d, 1860. Tr. 3. I have this day sold Mdse. to S. C. Wood & Co., as per Sales Book A, p. 15, amounting to $2450.00. Thursday, January 5th, 1860. Tr. 4. James Armitage has bought Merchandise of me, on acct., as per Sales Book A, p. 20, amounting to $1240.00. Friday, January 6th, 1860. Tr. 5. I have sold MIdse. to several persons, as per Sales Book A, p. 25, amounting to $840.00, for which I have received Cash. QUEST. 309. Why is the Illustrative Example introduced in Double Entry? 185 DOUBLE ENTRY BOOK-KEEPING. Monday, January 9th, 1860. Tr 6. I have bought Mdse. in New York,-as per Invoice Book A, p. 18, amounting to $2480.00, for which I paid the Cash. 3Iy expenses amounted to $30.50, and I paid $65.50 for freight on goods bought. Tuesday, January 10th, 1860. Tr. 7. S. C. Wood & Co. have paid me $1650.00 in Cash, on account of AMdse. bought Jan. 3d. Thursday, January 12th, 1860. Tr. 8. I have bought AMdse. in Boston, as per Invoice Book A, p. 22, amounting to $1460.00. My expenses amounted to $28.00, and the freight on goods bought was $37.60; all of which I have paid in Cash. Saturday, January 14th, 1860. Tr. 9. John Otis has paid his Note, No. 3, of $1500.00. Tr. 10. James Armitage has bought Mdse. on acct., as per Sales Book A, p. 30, amounting to $820.00. Monday, January 16th, 1860. Tr. 11. I have sold Mdse. for Cash, as per Sales Book A, p. 35, amounting to $1248.60; and Henry Brown has paid his Note, No. 4, of $1200.00. Wednesday, January 18th, 1860. Tr. 12. I have paid Hill & Wright $750.00 on acct., and I have paid Clark & Smith $1250.00 in full of their acct. Friday, January 20th, 1860. Tr. 13. S. C. Wood & Co. have bought of me AMdse. on acct., as per Sales Book A, p. 40, amounting to $1850.00. 16* ~ 186 ILLUSTRATIVE EXAMPLE. Monday, January 23d, 1860. Tr. 14. I have sold Merchandise for Cash, as per Sales Book A, p. 45, amounting to $785.00. Saturday, January 28th, 1860. Tr. 15. I have paid Hill & Wright's Draft to M. Drake for $460 00. I have also paid $50.00 for one month's Clerk Hire. Monday, January 30th, 1860. Tr. 16. I have bought Mdse. of Hill & Wright, on acct., amounting to $1275.00, as per Invoice Book A, p. 30. Tr. 17. I have accepted Hill & Wright's Draft in favor of Clark & Smith for $800.00. I have paid $300.00 of this sum in Cash, and the balance is placed to the credit of Clark & Smith in account. Inventory of Mdse. January 31st, 1860. 310. On taking an Inventory of goods remaining on hand this day, I find I have Merchandise worth $1471.00. Required to Determine the following Results: 1st. Give the Trial Balance taken January 30th, 1860. 2d. Give the Ledger Balances as ascertained January 31st, and brought forward under date of February 1st, 1860. 3d. Give the value of my Assets, as derived from these Transactions, and state in what they consist. 4th. Give the amount of my Liabilities, as derived from these Transactions, and state in what they consist. 5th. Determine the NVet Vclue of my Stock Feb. 1, 1860. 6th. Has there been Gain or Loss in trade during the month of January, and how much? QUEST. 310. What is the value of Merchandise on hand, January 31st, as pea laventory? W hat six results are required? 187 ~n 7uznd &{- v ( lI /zc&a/te Q e. 6oo0000 2 Fa4 e a/.. ** 2500 00 3 > geceswa6s es>.3,,o1"At ti,,' 1500, X, rWz~W? 9&, 1{o200 2700 00 1 a ioc 4'.90.Od efavoet4o% Re. C %2 260oo 00 3 G7 i'YA. 195000 22' a1250 00 S 3S a td. S a/ a RodS<, A2 Y5. 4150 00 4' ~ 3 o Gz/lewano 2.. 43 C/e @O /1000 00 5?a at eze tzi G4z. /dl4 oTAny7 Mnr 259.5 00 Olat at G/tau9 v an..c?600zn0 a lI a Gzane // 0 00 dy f. t T// e eIntri e 2s7w90 00 a/e at thtizt S M?>e Q@gow 776f5 3 ala at rczt(1lw 1 rlgicv enOa r r 00, e00 ctpa at hse ut o When -due. Where Payable. Amount. Remarks. Gey 7 cn sty.a f no 22e50 00 ai;. at.. he;a lone 16 (