ntoeratg of lElaus .Sprccfeela agreed age. r PA n >arl 40 ;ab Lif ITB to ier Fire Department. Property of nearly every description at luunc and al>i at the Lowest K;r l.y Li^htnii.^, 1 .:ni;ii;c lj of Gas in liiuldin^-, not forming par Rents of Buildings insured. AnnilitieS .ill kimls K i:inu-.l and the . ^ ^^~- favoural)l( t<.-rni>. CLAIMS SETTLED WITH PROMPTITUDE AND Lll /... //;,.///<'" /<- <<:* London 61, THREADNEEDLE STREET, E.G.: Do. (West-End) 8, WATERLOO PLACE, Edinburgh (i4, PRINCES STREET Northern Assurance Company. INCOME& FUNDS 1899 FIRE Premiums, 709,000 LIFE Premiums, 258,000 Interest 198,000 Accumulated Funds, 5,509,000 HEAD OFFICES LOBDON* ABERDEEN Northern Assurance Company. Head Offices : LONDON. 1, Moorgate St. ABERDEEN, 1, Union Ter. Branches BIRMINGHAM. BRISTOL. DUBLIN. DUNDEE. EDINBURGH. GLASGOW. LIVERPOOL. MANCHESTER. NEWCASTLE. NOTTINGHAM. CALCUTTA. CHICAGO. NEW YORK. SAN FRANCISCO. MONTREAL. MELBOURNE. LONDON BOARD Colonel ROBERT BARING. HENRY COSMO ORME BONSOR, Esq. ERNEST CHAPLIN, Esq. ALEXANDER HEUN GOSCHEN, Esq. HKNKV CHARLES HAMBRO, Esq. WILLIAM EGERTON HUBBARD, Esq. DIRECTORS. FERDINAND MARSHALL HUTH, Esq. HENRY JAMES LUBBOCK, Esq. CHAKLES JAMES LUCAS, Esq. WILLIAM WALKINSHAW Esq. Rt. Hon. Sir ALGERNON WEST, K.C.B. Secretary. R. W. LOWE. IK rwma ^ J W - MANNERING, ffome Superintendent. Fire Department, | Jos FowLER> Foreign Superintendent. Life Department F. LAING, Actuary General Manager. H. E. WH.SON. Fire Department. Insurances are granted on Property situate in all parts of the British Dominions, and in most Foreign Countries, at rates which are computed according to the actual risk incurred. The Company has already paid over 10,000,000 in the settlement of claims under its Fire Policies. Life Department. The Company offers the advantages of perfect security, with great economy in management and moderate Rates of Premium. The total expenses in the year 1899 were slightly under 7 per cent, of the Income from Premiums and Interest, or, excluding Commission paid to Agents, less than 4 per cent. In the Participation Branch the whole of the ascertained surplus at each valuation belongs to the Assured. The Amount for the Quinquennium ending 3ist December, 1895. was sufficient to provide a Bonus of i. us. per cent, per annum upon the sum assured, or j?- r 5 s - P er cent, for the whole Quinquennium, besides leaving .10,896 to be carried forward. The Liabilities were ascertained by the well-known combination of the Institute of Actuaries HM (5) and HM Tables of Mortality, with only 3 per cent, assumed as the rate of Interest to be in future earned by the funds which are acknowledged to be Yry rigorous data for the purpose. SCOTTISH WIDOWS' FUND For MUTUAL LIFE -se- -B* ASSURANCE. Accumulated Funds (exceed) 15,000,000. The Whole Profits realised are divided among the Members. Bonus Yea,x* 19O1. The Profit* of the curn'iii seven tv.ir.v In jisi December 1901 will be ilfi'ltirfil at the following .\iinnal Meeting, and all Participating Policies issued during 1901, on which out full year's premium /M.V lu\-- : : : .i : S ^H si o n^ ^ w c3 "^ o : : :^ : o S m r *o . fl - EH ~ - *3 ^S ^ pa ' H z ^ .2 o flO 4! g :J| ^^ c3 4 o 5 2 2 w *S f2 3 eg - What is the value of 1,000 in francs, when the course of exchange is 25-20 ? (1,000 X 25-20). Convert 500 into dollars, when 50d. is equal to a dollar? 500 X 20 X 12 = 12,000 -^ 50 = 2,400 dollars. Convert 2,400 dollars into sterling at 50d. 2,400 X 50 -i- 20 X 12 = 500. The mint par between France and England is 25-22. The quotation in Paris for cheques or Short bills on London is 25-26. How much has the value of 1 increased in Paris ? 25-26 - 25-22 = -04 francs. Exchange 2 Eeis, 800 Contos, 462 Mils, into sterling at 48d. 2-800-462 48d. of 240d. = 460-092 TREATMENT OF EXCHANGE IN VOYAGE ACCOUNTS. A., in Newcastle, consigns to B., at Havre, goods per "Kate," the freight of which is valued at 8,500. The shipbroker's agent in Havre applies to B. for payment, the course of exchange on the date when the freight was remitted being 25-20. The total amount received would 88 therefore be 3,500 X 25-20 = 88,200 F. The disburse- ments amounted to 2,000 francs, which at 25-20 = /2000\ \2520/ When, however, the agent remits the balance of the freight, viz., (88,200 - 2,000), 86,200, he finds that the exchange is against England, the rate instead of being 25-20 being 25-25. Now 86-200 @ 25-20 == 34-4-7 Now 86-200 @ 25-25 =84-2-10 A loss in exchange of 1-9 These would therefore require to be included on the Dr. side of the Voyage A/c. s. d. To Disbursements 79 7 6 Loss in Exchange 019 In the accounts of an English house, with its business say in Chili or Peru, it is usual for the gross profit in the foreign currency to be converted into English money at the average rate of exchange for the period covered by the accounts, and for all foreign liquid assets and liabilities to be stated at the current rate of exchange, any loss thereon being debited to the Profit and Loss Account. DEPEECIATION. Depreciation may be defined as the loss arising on a wasting asset, or the gradual redemption of capital, by writing off a certain proportion of the asset, or reducing it at stated intervals, the residual value, or the amount out- standing at the conclusion of the term, being that which 84 the written down asset may be fairly expected to realize if then put into the market. Depreciation is fixed by an ascertained percentage of annual skrinkage in the value of land, buildings and plant, each of which have varying per- centages. Land is supposed seldom to be charged with depreciation, but this is not so with buildings, upon which time and atmospheric changes must act adversely. Plant is of an ever fluctuating value, as in different manufactures the percentages vary. For instance, chemical works plant will deteriorate at a much greater ratio than plant in other trades, owing to the fact that acids eat away the expensive lead chambers used in chemical works. The Inland Revenue Surveyors have of recent years admitted a deduction of their assessments for depreciation, although in the past they strongly maintained an objection to the deduction. There are two methods of treating depreciation in a Balance Sheet. Firstly, by a journal entry of Profit and Loss Account Dr. to the Asset to be depreciated. This would be posted to the debit of Profit and Loss Account, thereby reducing the balance by the amount to be deducted therefrom, and correspondingly reducing the amount stand- ing to the debit of the asset. This would not, of course, appear on the Balance Sheet otherwise than that the asset would be of less value than originally, and that profit would suffer a corresponding deduction. Secondly, by allowing the values of the assets on the Balance Sheet to remain intact, creating as a liability a Depreciation Account, crediting the same with the agreed amount of depreciation, and debiting profit and loss account. The advantage that this mode possesses is that it enables a vendor to show his capital items at their original value, 85 leaving a purchaser to assume his own depreciation, or it might possibly happen that the property has increased in amount beyond the book values. No. 1 is, however, pre- ferable. Now if a merchant buys property, say for 500, and proposes to depreciate it in five years by annual sums of 100, it means that he has an asset now valued at 500, but which at the end of a year he only estimates at J6400, and in recording it in his books he would credit property, and debit Profit and Loss Account, the amount forming a charge against gross profits, thus : Dr. Profit and Loss. Cr. To Depreciation ... 100 Dr. Property. Cr. ToB 500 By Depreciation ... 100 Cr. Balance Sheet. Cr. Capital 500 Property ... 500 Less Depreciation 100 400 Cash (Reserve) ... 100 500 500 The property now stands at its estimated value, and the amount written off forms an asset in the account of 100, which at the conclusion of the term will have increased to 500, which could then be applied towards the purchase or renewal, of the lease of the property. This is the first step towards the restoration to capital if the depreciation is invested or held for that purchase. Reserves for all assets liable to waste, deterioration, or limited in time, should be created so that at the proper period when the assets disappear there will be reserves to replace them. If this be not done the original capital will have been lost by the division of improper profits or the declaration of improper dividends. The object of these Reserves is to keep the capital in- vested in the business intact, and they form a necessary charge against gross profits, and no Reserve Fund can be created until these have been provided. In certain circumstances the courts have decided that dividends may be paid out of capital. That is to say, where the capital has been lost, and there has been a profit on trading account, without taking into considera- tion the loss of capital, it has been legal to declare and pay a dividend. The subject will, perhaps be better under- stood by a simple illustration. We will suppose that the Balance Sheet of the "Sixty- fourth Co." at the end of a year is : Cr. Dr. Capital ... 1000 Cash 1000 During the following year they purchase and pay for a ship, 1,000. The expenses for the year are 2,000, and the income is 8,000. The ship is a total loss, and there is no salvage, and for the sake of illustration no insurance. The entries would be : Dr. Capital. Cr. By Cash ... 1000 Dr. Cash. Cr. To Capital... 1000 By Ship ... 1000 Income... 8000 Expenditure 2000 I>r. Ship. Cr. To.Cash ... 1000 Dr. Profit and Loss. Cr. To Expenses 2000 00 By Income 8000 87 Now, if the ship had not been lost, the Balance Sheet would have been : Capital 2000 Cash 1000 Ship 1000 2000 2000 As the ship was lost there should be a debit to Profit and Loss and a credit to Ship Account. Now, there was 1,000 with which to commence the business, and it was spent in the purchase of a ship. The ship was lost, but there was a profit on Trading Account of 1,000. If this sum were applied in replacing the capital in the shape of purchasing another vessel, the Balance Sheet would, of course, be : Capital ... 1000 Ship 1000 But the fact of paying the money in dividend would deprive the business of its existence, an awkward contre- temps for any possible creditors. The capital in this example maybe described as " fixed," and though it has been lost, there is apparently no reason why it should be replaced at once. The owners of the Sixty-fourths might agree to accept a small return, and with the remainder purchase another vessel partially on credit. It is needless, however, to state that the restora- tion at once of the whole of the 1,000, if necessary, for the purchase of another vessel, is the course which appeals to sound commercial principles. If the ship had been insured, this would have altered the effect of the loss, but not the principle. It should be borne in mind that in the case of Single Ship Companies it is usual for the shareholders themselves to provide for depreciation. 88 It has been said that no profit can be deemed a true, or nett profit, until proper provision has been made for interest upon capital. To this statement might be added depreciation. In Glasier t?. Rolls, Mr. Justice Kekewitch held that before arriving at any profit the question of depreciation must be taken into account. Wasting assets with residual values are generally depre- ciated on diminishing balances, and those with no residual amounts on the original cost. Perhaps the simplest method of calculating depreciation is to reduce the original amount by equal half-yearly or yearly instalments. This is applicable in certain cases of plant, machinery and short leases. Assuming that a merchant bought certain property at a cost of 200, and that it was decided to charge depreciation at the rate of 10 % upon diminishing balances, required the residual value at the end of the first year. 200 H- 10 = 20 and 200 - 20 = 180 Where, however, the number of years, which the deprecia- tion is intended to cover, is large, the residual value will be found best logarithmetically, viz : o.90 Log. 0.90 1.9542425 X no. of years 1 1.9542425 Add log. 200 2.8010800 2.255272o which equals the log. of 1HO R.V. 89 If it were required to depreciate 200 to 100 in a stated time, we have exhibited below the logarithmic method of finding the rate per cent. Log. 100 2.00 - Log. 200 2.8010300 1.6989700 -r by no. of years 1 .6989700 which is the log. of 5 . . 5 / 100 X 10 , 0/ -2ob =5% Similarly we ascertain the time. Log. 100 2. Log. 200 2.3010300 1.6989700 Log. 1 reduced JL2l = 1.9777236 .95 Converting these negative logs, into positive numbers, we have .8010300 13 years approx.; .222764 or 200 10 = 190 9/10/0 = 180/10/ and so on until it is reduced to 100. The three foregoing practical illustrations are worked out from logarithmic rules given by Mr. Turner, C.A., in a lecture upon Depreciation, an authority upon the subject. The annuity method adopted in long leases is as follows, viz. : To Depreciate 50 in 5 years at 5 %. 40 The amount of 1 in 5 years at 5% = 1.2763 X 50 = 63.8150. The amount of 1 per annum in 5 years at 5% = 5.5256, The P.V. of 1 per annum for 5 years at 5% = 4.8295, and 50 -=- 4.3295 = 11.5489. Then 1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr. 50 2.5 52.5 11.5489 40.9511 2.0475 42.9986 11.5489 81.4497 1.5724 33.0221 11.5489 21.4782 1.0786 22.5468 11.5489 10.9979 .5498 11.6477 11.6489 Interest. Principal. 2.5 9.0489 2.0475 9.5014 1.5724 9.9765 1.0786 10.4758 .5498 10.9991 7.7488 50.0012 41 The necessary entries would be : Dr. Cr. Rent 11.5489 To Lease A/c 9.0489 Int. on 50^' 2.5 Bent 11.5489 To Lease A/c 9.5014 Int. on 40.9511 -L|- 2.0475 Rent 11.5489 To Lease A/c 9.9765 Int. on 31. 4497^ 1-6724 v/o and so on for 5 years. Charging the interest to Purchase Account, we have 11.5489 + 5 = 57.7445 Purchase A/c (amount) 50 Interest, as per table 7.7483 57.7433 The method proposed by the late Mr. F. R. Goddard, C.A., of Newcastle-on-Tyne, for depreciating leasehold property, especially that in connection with collieries is practically as follows. Assuming the nominal share capital of a company to be 20,000, the amount of subscribed capital 15,000, and the cost of the property 15,000, we have BALANCE SHEET. Dr. 1st year. Subscribed Capital. 15,000 Leasehold Prop. Less Depreciation.. 1,000 Less Deprec. 14,000 14,000 42 Dr. 2nd year. Or. Subscribed Capital. 15,000 Leasehold Prop. ... 15,000 Less Depreciation.. *2,500 Less Deprec. ... 2,500 12,500 12,500 * 1,000 for 1st year and 1,500 2nd year, amount gradu- ally increasing, and so on. Dr. To Deprec. Bal. Dr. To Sundries Dr. To Deprec. Bal. Dr. To Sundries Capital A/c. (1st year.) Cr. ... 1,000 By Sundries ... 15,000 . 14,000 15,000 Property A/c. (1st year). ... 15,000 By Deprec. Bal. 15,000 Capital A/c. (2nd year). ... 2,500 By Sundries ... 12,500 15,000 Property A/c. (2nd year). ... 15,000 By Deprec. Bal. 15,000 Cr. . 1,000 . 14,000 15,000 Or. . 15,000 15,000 Cr. .. 2,500 . 12,500 15,000 15,000 43 Dr. Depreciation A/c. (1st and 2nd years.) Cr. To Capital ... 1,000 By Property ... 1,000 Ditto ... 2,500 Ditto . ... 2,500 8,500 8,500 If such treatment were legal in respect of a limited company, it would, of course, require to be clearly under- stood that the whole of the capital expended would be lost at the termination of the lease, save the residual value, the whole of the profits having been paid away in dividends. Supposing that a merchant paid 8,169 for a three years lease of certain valuable premises. Interest at 5% per annum. On referring to a year's purchase table we find that under 5%, and opposite three years, the value 2.723, and 8,169 -s- 2.728 = 3,000, the amount to be deducted yearly from the lease. Lease account would, therefore, be as follows, viz.: Dr. 1st year. Cr. To P.M. ... 8,169 ByDeprec.... 8,000 Int. 5%... 408 9 C Bal. ...5,577 9 8,577 9 8,577 9 Dr. 2nd year. Cr. ToBal.ofPur- By Deprec.... 3,000 chase money 5,577 9 Bal. ... 2,856 6 5 Int. 278 17 5 5,856 6 5 5,856 6 5 44 Dr. 3rd year. Cr. To Balance of By Deprec. ... 2,999 2 P.M. ... 2,856 6 5 Int. 142 16 8 2,999 2 8 2,999 2 8 This is practically the same as the method used in long leases given in the early part of the paper. To depreciate by reserving a certain proportion of the original cost and investing it is another mode of treatment (Sinking Fund). 7'7.6779 = 15.9009, the amount to be reserved yearly. * Equal to the sum of (1 + .05) (1 + -05) 2 (1 + -05) s and so on for 10 years. In Co-operative Society's Accounts the following are the usual rates for depreciation, viz.: Shops 2* to 8% Cottage Property ... 1 ,,2,, Rolling Stock ... 20 ,,25,, Fixtures 10 ,,12,, Twelve per cent, per annum for 7 years is said to be a just depreciation of type, the residual value being sold at the rate of about 5d. per ft. Where companies possess assets in the shape of shares in ships, the whole amount received on account of dividend must not be credited to revenue if due regard is paid to depreciation. Where companies are the sole owners of 45 ships, it is desirable that a reserve fund account should be raised so as to extinguish the original cost at the termina- tion of the life. In single ship companies, as is well known, it is left to the shareholders themselves to make provision for the de- preciated value of their vessels, the whole of the profits being paid away in dividends. The decrease or increase in market value may be stated as another form of treating the depreciation or appreciation of an asset. In regard to mining, assuming that a mine costs in sinking 50,000, machinery 20,000, and that the length of lease is 30 years, the amount to be written off per annum is 2,333 6s. 8d. ( g Q ) it being assumed that at the expiration of the lease the coal will have been exhausted. 70,000 - 2,333 6s. 8d. = the amount to be written off during the 29 years, the outstanding 2,333 6s. 8d. repre- senting the value of the machinery, etc., or the amount, which should be standing at the debit of the sinking and machinery account at the expiration of the lease, technically termed the residual value. Again, assuming that the tonnage life is less than that of the lease Cost 3,000 Less R.V. 500 2,500 Lease, 6 years. No. of tons approx. 5,000 tons (tonnage of output 1,000 tons per year), then 2,500 H- 5,000 = 10s. per ton depreciation on coal sold. Lastly, supposing the length of the lease is less than the tonnage life. 46 Cost 3,000 Less E.V. 500 2,500 Lease, 5 years. No. of tons approx. 6,000, output 1,000 tons per year, then 2,500 -r- 5 = 500 per year depreciation, or 2,500 -=- 5,000 = 10s. per ton depreciation on coal sold. As to the best method of depreciating leaseholds and freeholds, the circumstances of each case must be taken into careful consideration. The simplest method, as already stated, is to divide the amount by the number of years, or scientifically by the an- nuity method. It will be noted that the depreciation of free- holds is governed by the life of the erections upon the property. In regard to the hire-purchase of wagons it is the custom to ascertain their value at the time of the last payment, and to divide this amount by the number of payments, the result being debited to Profit and Loss and credited to a Wagon Purchase A/c on the payment of each instalment. Goodwill, which is bought at so many years' purchase, should be subject to gradual depreciation. To reduce 100 to 50 in 5 years (reduced amount) : Log 50 1.6989700 - Log 100 2 1.6989700 no. of years 5 -f- by do. 5)4.6987900 .9897940 - 1 I. 1.9397940 = log of 87 Approx. 13% nearly. 47 Patents cost should be so written off as to be nil at the expiration of period. RAILWAY COMPANIES AND MINE WORKINGS. Amongst the public Acts for the regulation of railways dating from 1838, Clause 77 of 8 Vic., Cap. 20 in that of the 8th May, 1845, states that "a railway company is not entitled to any mines of coal, ironstone or slate or other minerals, under any land purchased by them, except only such parts thereof as shall be necessary to be dug or carried away or used in the construction of the works, unless the same shall have been expressly purchased, and all such mines, except as aforesaid, shall be deemed to be excepted out of the conveyance of such lands, unless they shall have been expressly named therein and conveyed thereby. In the succeeding clause it is further enacted that if any owner, lessee or occupier is desirous of working minerals under the railway or under any of the works connected therewith, or within the prescribed distance, or where no distance shall be prescribed 40 yards therefrom, he is to give in writing to the company notice of his intention to do so 30 days before the actual commencement of the works, and it is competent for the railway company upon the receipt of such notice to cause such mine to be inspected, and if it appears to them that the working of the mines or minerals is likely to damage their works, and if the railway company is willing to make compensation for such mines or any part thereof to such owner, lessee or occupier, then 'he shall not work or get the same, and if the company and such owner, lessee or occupier do not agree as to the amount of such compensation, the same shall be settled as in the cases of disputed compensation. 48 The form in which the notice is given by the raining company is as follows, viz. : To . .Railway Company. Dear Sir, We hereby give you notice under and by virtue of the provisions of the Railway Clauses Consolidation Act, 1845, that we intend on the expiration of 30 days from the service of this notice to work the coal, of which we are the owners (or lessees), in the seam known as the seam, in the Colliery, lying under the lands situated in the township of and in the parish of in the county of coloured on the plan hereto annexed, and we are willing to give you all reasonable facilities for inspecting our Colliery workings for the purpose of determining whether the working of the coal above men- tioned will be likely to damage the works of your railway. Signature of Colliery owners or their agents. Upon the receipt of such a notice the railway company's secretary communicates with the company's engineer, asking him to submit any information which it may be desirable to transmit to the company's mining engineers, when ask- ing that gentleman to report to the directors upon the notice. The mining engineer's report is eventually sub- mitted to the directors, who generally adopt the recom- mendations contained therein, and if it is decided to purchase support, a counter notice is served upon the colliery company by the secretary of the railway company. The form of Counter Notice is as follows : To (The names of the owners of the Colliery.) and To ALL OTHERS whom it may concern. WHEREAS the said Colliery Company (herein- 49 after called the " Coal Company ") being the Lessees and occupiers of the mines and minerals hereinafter mentioned have by notice dated the under the hand of given notice to the Railway Company (hereinafter called the "Railway Company") of their intention to work the coal in the seam at the Colliery, lying under the of the Railway Company situate in the Parish of in the County of and under certain lands adjoining thereto, shown on the plan thereto annexed. And whereas it appears to the Railway Company that the working of such parts of the said coal as are hereinafter described would be likely to damage the Railway aforesaid. Now therefore the Railway Company do hereby, in pursuance and by virtue of every power enabling them in that behalf, require that per cent, of the coal in the said seam lying under the lands coloured on the plan hereto annexed, shall be left unworked in pillars of the usual size and shape. And notice is hereby given that the Railway Company are willing and hereby offer to pay to the parties entitled thereto all such compensation as may be payable according to law in respect of the coal to be left unworked as afore- said. Dated this... Signature. Secretary of the Railway Company. Should any subsidence take place from colliery workings between the points where support has been purchased, the colliery company will, of course, be liable for the railway company's expenses therein. If the Colliery Company work coal, which affects the Railway Company's property, without any intention of serving the latter with the usual legal notice, 50 the Colliery Company will be responsible to the Railway Company for any subsidence that may occur, or for any injury that may be done. The following is an example by a compensation account : Railway Company, To CoUiery Dr. For compensation as under : Notice to Railway Company, dated counter notice dated colliery seam Agreed tonnage left for the support of 5,000 tons, Compensation agreed at lOd. per ton on 5,000 tons (to the lessees) 208 6 8 Rent payable to the lessors on 5,000 tons at 5d. per ton 104 8 4 312 10 Certified Mining Engineer. Note. The rate per ton paid by the railway company is the profit only which the colliery company would have received had the coal been worked and sold in the ordinary course. It is based upon the average price realised in pre- ceding years, and if there is any doubt in this respect it is desirable to employ a professional accountant to verify the price or rate of the colliery company. The colliery company pay no royalty rent upon the coal purchased by the railway company. BOOK-KEEPING BY SINGLE ENTRY. Book-keeping may be defined as the art of recording commercial transactions in a methodical manner. Single entry means a single entry for each transaction. 51 It is simple, and meets the requirements of retail tradesmen in a small way of business. There are no nominal or real accounts, and when the articles of trade are varied, it is extremely difficult to draw up a proper Profit and Loss Account. No trial balance can be prepared, and, therefore, the balance sheet is not reliable. There is also much room for fraud ; these may be considered as its disadvantages, whilst its only advantage is perhaps simplicity. Strictly speaking, single entry implies the use of a Day Book and a Ledger only, the transactions being recorded in the Day Book as they take place, and afterwards transferred to the personal accounts in the ledger. The subjoined set of books by single entry will be readily understood, to which might be added with advantage a book for recording the particulars of stock. Its form would, of course, depend upon the nature of the trade carried on. A Bills Payable and a Bills Receivable Book might be kept in the following forms, The Bills Receivable would be entered therein when received, accepted, and posted to the personal account, and when liquidated they would be entered on the Dr. side of the Cash Book. The same remarks apply to Bills Payable, except that when these bills are returned, or honoured, they would, of course, be posted to the Cr. side of Cash Book. BILLS RECEIVABLE BOOK. Folio No. of BUI. Date of receipt of Bill. On whom drawn. Date of Bill. Term. When due. Amount. How disposed of. 52 BILLS PAYABLE BOOK. L. Folio .No. of Bill. Date of issue of Bill. On whom drawn. Date of Bill. Term. When due. Amount. When paid. The above forms do not record the bills in as sufficient detail as the forms used in Double Entry, but for Single Entry purposes they may meet the requirements of the majority of cases. OPERATIONS NECESSARY ON BOOKS KEPT BY SINGLE ENTRY BEING CONVERTED INTO THE D.E. SYSTEM. We will suppose that the above is to take place at the beginning of the year 1874. The first duty would be to get out a statement of affairs as at December 81st, 1872, and to audit the books for the year 1878. Impersonal accounts would be necessary, so far as they could be raised. The Sales and Purchase books would have to be totalled for each month, and the totals carried to such impersonal accounts. The totals of discount would also have to be debited and credited to a discount account. Wages, rent, and similar items should also be transferred to their respec- tive accounts. The audit having been concluded, with this transformation, a Balance Sheet and a Profit and Loss Account as at the 81st December, 1878, could easily be pre- pared, and the new system brought into operation at the same time. 58 It is not, however, necessary to deal with one year's transactions prior to conversion as the accounts of any business at any time on taking stock and drawing a Balance Sheet with Schedules of debtors and creditors may be transformed into double-entry. The Balance Sheet is the starting point. The personal accounts should be correctly brought down according to the schedules, open nominal or impersonal accounts for assets and liabilities (other than personal) and determine the nominal accounts for the future. That is, supposing the business is simply buying and selling, take the monthly totals of purchases to an account called Purchase Account, vice versa Sales Account, discriminating items representing standing charges such as rents, taxes, commission, etc. Deal similarly with cash book items, and at the close of one year's transactions prepare a trial balance, from which, after stock-taking, a Profit and Loss Account and a Balance Sheet can be prepared. Transactions of C. Thomas, Rag Merchant, for one month, recorded by single-entry: Balance Sheet at January 1st, 1874. Dr. Cr. Capital 150 Cash 150 54 DAY BOOK. Record of Purchases : Each transaction is posted to Cr. side of re- spective account in Ledger. Date. F. Name. Quantity. Description. Price Amount. Total. 1874 Jan. 7 1 W. Thomas ... 560 20 Rags (best) do. (Inf) 5/6 net a/. 192 800 4 Q 9 16 20 25 1 1 1 B. Thompson.. W. Fairless ... R. Mawlis 562 200 300 do. (best) do. do. 6/- 6/2 5/6 1 12 12 4 16 6 ,, 27 ,, 29 2 2 R. Emmerson . W. Robson ... 500 500 do. do. 5/2 6/- 1 5 10 1 5 SALE BOOK. Record of Sales : Each item is posted to Dr. side of respective account in Ledger. Date. F. Name. Quantity. Description. Price Amount. Total. 1874 Jan. 1 2 M. Arkless 562 800 Rags (best) do. 7/6 6/6 1 19 11 19 6 2 1Q fi 17 2 W. Armson ... 200 800 - do. (Inf) do. (best) 4/2 5/- 084 15 1 8 4 25 2 Geo. Riles 500 Ido. 4/6 126 2 8 B Thos. Eanton .. W.Scott N. Irnes 550 200 100 do. do. do. i** 5/5 7/6 7/. 1 8 6 15 070 26 29 80 :-* 2 3 2 W. Morrison .. R. Robinson ... Geo. Williams . E. Carr 800 5 4 1 1 220 do. do. do. do. 8/2 6/- 6/9 7/5 1 4 6 1 11 4 069 15 7 55 CASH BOOK. Date. F. Cash. Amount. Date. F. Contra. Amount. 1874 Jan. 1 ,, 9 17 ,, 26 n > 30 1874 Feb. 1 8 2 2 2 2 2 2 To C. Thomas (Capital)... ,, M. Arkless . ,, W. Armson. ,, Geo. Riles .. T. Eanton.. ,, R. Robinson ,, E. Carr ... To balance... 8. d. 150 200 17 1 2 6 185 11 4 15 7 1874 Jan. 7 ,, 16 ,, 21 ,, 27 31 1 1 1 2 By W. Thomas . ,, A. Thompson ,, W. Fairless.. ,, R.Emmerson Balance ... . s. d 8 ( 1 12 ( 12 - 1 5 11 150 4 1 156 14 10 156 14 1 150 4 8 When a banking account is kept columns are generally reserved on bot sides for receipts and issues on such account. There should also be column for discount. A record of all promissory notes given and taken should be kept. Dr. 1874 Jan. 7 31 LEDGER. W. Thomas, London. To Cash ... ,, Balance. 3 1 s. 9 d. 2 4 9 2 1874 Jan. 7 By Rags ... 1874 Feb. 1 By Balance Cr. s. d. 492 492 1874 Jan. 16 To Cash .. R. Thompson, London. 1874 1 12 Jan. 16 By Rags... 1 9 2 1 12 56 Dr. 1874 Jan. 21 1874 Jan. 31 1874 Jan. 27 1874 Jan. 31 1874 Jan. 1 1874 Feb. 1 1874 Jan. 17 1874 Feb. 1 i To Cash... To Balance To Cash ... To Balance To Rags ... To Balance To Bags ... To Balance William Fail 12 4 B. Manlis 16 6 -less, L( 1874 Jan. 20 , Londc 1874 Jan. 25 1874 Feb. 1 on, Lon 1874 Jan. 27 i, Lond< 1874 Jan. 29 1874 Feb. 1 3, Lond 1874 Jan. 9 ,, 81 i, Lond 1874 Jan. 7 81 mdon. By Rags . . . >n. By Rags... By Balance don. By Rags ... 3n. By Rags... By Balance on. By Cash... ,, Balance on. By Cash ... ,, Balance Or. 12 4 16 6 R. Emmers 1 5 10 16 6 1 5 10 W. Robsor 150 150 M. Arkles 2 19 5 150 200 19 5 2 19 5 2 19 5 19 5 W. Annsoi 1 3 4 17 064 1 8 4 1 3 4 064 57 Dr. 1874 Jan. 25 1874 Jan. 25 1874 Jan. 26 1874 Feb. 1 1874 Jan. 30 1874 Jan. 25 1874 Feb. 1 1874 Jan. 25 1874 Feb. 1 To Bags... To Rags... To Bags... To Balance To Bags ... To Bags... To Balance To Bags... To Balance George Br 126 es, Lon 1874 Jan. 26 i, Lond 1874 Jan. 26 n, Lone 1874 Jan. 26 31 Londor 1874 Jan. 30 Londo 1874 Jan. 31 Londo] 1874 Jan. 31 don. By Cash ... on. By Cash... Ion. By Cash.. ,, Balance i. By Cash... n. By Balance a. By Balance Or. 1 2 6 T. Eantoi 1 8 5 B. Bobinso 1 11 4 185 11 4 ) 1 1 11 4 1 11 4 100 E. Carr, 15 7 15 7 15 070 W. Scott, 15 15 M. Jones, 070 070 58 W. Morrison, London. 1874 Jan. 26 1874 Feb. 1 To Bags ... To Balance 146 1874 Jan. 31 By Balance 146 146 1874 Jan. 29 1874 Feb. 1 ( To Bags ... To Balance George Willi 069 ams, Lc 1874 Jan. 81 ndon. By Balance 069 069 1874 Jan. 81 To Balance C. Thoma 155 18 3, Lond 1874 Jan. 81 an, By Capital P.&L. 150 5 18 |155 18 155 13 1874 Feb. 1 By Balance 155 13 Dr. Balance Sheet of C. Thomas as at 31st Jan., 1874. Or. Sundry Creditors : .s. ,/. I- W. Thomas 192 R. Manlis 16 6 W. Bobson 150 Capital at Jan. 1st, 1874 ...150 Add Profit for Jan. 5 18 Sundry Debtors : a. d. s. d. s. d- M. Arkless.. 19 5 W. Armson 064 B.Bobinson 100 8 10 8 W. Scott... 15 N. Jones... 070 W.Morrison 146 G.Williams 069 4 19 Cash in hand ... 150 4 8 155 18 Stock 400 159 3 8 159 8 8 59 NOTES UPON AUDITING AND BOOK-KEEPING BY DOUBLE ENTRY. An audit, which may be simple, or detailed, or adminis- trative, is generally denned as an examination of accounts in order to ascertain whether they are correct or otherwise. A mere formal audit, especially as regards large limited liability companies, and in partnerships where extensive interests are concerned, often signifies little or nothing. Experience teaches that in the long run nothing but a searching audit will tend to give satisfaction. All entries therefore should, as far as possible, be checked with original documents. A continuous audit no doubt possesses certain advantages, but these are perhaps more than counter-balanced by corres- ponding disadvantages. The system of sectional balancing, which saves a con- siderable amount of mechanical checking, appears to increase in practice. Commercial books are either I. Financial (Books of Account) or II. Statistical. The names of the principal of these are as follows, viz., FINANCIAL. Cash books, Bills (Receivable and Payable), Journal, Day and Invoice Books, Ledger, and Returns, Sales, and Purchases. STATISTICAL. Shareholders' Address Book, Register of Shareholders, Application and Allotment of Shares, Register of Mortgages, Register of Transfers, Minute Book, Annual List of Members, and Register of Debenture Stock. 60 The following should be included in the list of documents required by the Auditor when called in to perform the first audit of a company's accounts : A copy of the original Prospectus. A copy of the Act (if incorporated by Parliament). The Certificate (if registered under the Companies' Act). Memorandum and Articles of Association. Agreements, Title Deeds and Conveyances (if any), and all books and documents used in connection with the forma- tion of the Company. In a partnership audit the Auditor will require the Deed of Partnership and Agreement (if any). FINANCIAL BOOKS. Cash Book. The introductory duties in connection with the audit of this book are to see that the figures are in ink, the columns properly ruled off, or closed, and that the additions are correct. All receipts and payments should be checked with the counterfoils of the receipt books and vouchers respectively, whilst both these records should be carefully scrutinized. The former is not a very effective means of check. If, however, in the examination of the Sundry Debtors item in the balance-sheet a private circular were issued to each debtor showing what he owed to the company or firm, this would, in all probability lead to the detection of any fraud that might be in existence. The entries should be checked with the ledger postings. The income, or receipts, may consist of : I. Remittances from ordinary debtors. II. Loans and subscriptions on accounts of shares and capital, including calls, for which see Articles, certified list 61 of Allotments and Minutes, Pass Book, and counterfoils of Share Receipt Books, as regards authority and testing correctness. III. Interest or dividends on investment. See warrants and coupons. IV. Discounts. Consult terms in Sale Book. V. Realization of investments. Consult broker's notes and correspondence. Every receipt should be banked, and all payments made by cheque, with the exception of petty cash items, which might be recorded on the Imprest System, and for which receipts should be obtained wherever possible. In all well-managed houses the Petty Cash book is periodically inspected by either one of the managing directors, the Secretary, or some responsible official. It is hardly necessary to point out that all monies received on account of shares and debentures should be put upon deposit until the time when the definite allotment of shares and acceptance of debenture tenders take place. The interest arising thereon might be employed in assisting to defray the preliminary or formation expenses. Payments may arise under the following heads, viz. : I. Remittances to ordinary trade creditors. II. Payments to stockbrokers on account of the placing of shares, for which there should be a clause in the articles, and which in effect are similar to underwriting commissions. III. Wages (see Wages books, which should be certified by Secretary). IV. Salaries. V. Loans on negotiable warehouse receipts or warrants. (Test security from time to time, and note period of redemption) . If any expenditure has been incurred for which no vouchers are produced, a note to this effect should be in- cluded in the Auditor's certificate. For the balance of cash on hand secure certificate of the cashier, test additions of Cash Book totals in ink and count the cash in hand, viewing any lOU's of partners if included in the cash balance, and for balance on current and deposit accounts, obtain, if necessary, a certificate from the Bank Manager. A Cash Book should contain columns for Discount, Cash, and Bank. The bank figures should be compared with those in the pass book, and the difference between the Dr. and Cr. totals of the banking account in the Cash Book, subject to a reconcilement account, should agree with the balance shown by the Pass Book. Bills Receivable Book. Before being posted bills receivable are first recorded in the Copy Bill Book, and when they are returned duly accepted they are entered into the Bills Receivable Book, and posted thence to the Cr. side of the personal ledger account. When liquidated, or honoured, they are posted to the bank account on the Dr. side of the Cash Book, and the items appear on the Cr. side of bills receivable account in the nominal ledger. This is the routine on double entry principles. There still remain here and there some old fashioned firms who pursue the practice of neither receiving nor accepting bills. Bills Payable. When accepted and returned bills payable are entered into a book of that name and posted thence to the Dr. side of Personal Ledger account. When returned they appear on the Cr. side of the Cash Book, and Bills Payable account is, of course, debited in the Nominal Ledger. Notes on Bills. Bills should only pass through the portals of the Cash Book when converted into cash. This, however, is not the general practice. According to the old-fashioned method of recording, say a bill receivable, the following routine is necessary : I. Enter in Copy Bill Book. II. When accepted enter into B/Receivable and Cash Books. III. Post to Ledger. If bills are not promptly and regularly met, and any renewals take place, the Auditor should increase his vigilance. The stock of bills on hand at the period of auditing should agree with the total of the various amounts stand- ing to be retired. Bills discounted can be compared with the Pass Book. Bills Receivable are often paid into the Bank for collection and kept in a separate account without being discounted, thus throwing the onus on the Bank to present at maturity and credit current account when paid. Bills for collection can be verified by a note from the bank. In connection with the treatment of bills, note should be taken of contingent liabilities on bills discounted, and also the proper apportionment of rebate of interest on bills discounted. Lastly, the Auditor should act prudently on any suggestions that may occur to him. Digressing, in America some companies have been formed 64 with the object of advancing cash to merchants on the security of outstanding accounts, which the former collect, the merchants undertaking the risk, and a small commission being charged to them for the labour thus involved. It is said that this practice finds favour with a large number of traders, who experience delay and difficulty in obtaining payment of their invoices. Journal. The journal may be said to occupy an intermediate position between the ordinary subordinate books of account and the ledger, and forms the foundation of practical book- keeping. The student of book-keeping should, at the outset of his study, learn how to journalize all kinds of transactions with facility and celerity, and then pass on to the classifica- tion of the items, in the various subsidiary books, the trial balance, and the consequent preparation of the Profit and Loss Account and Balance Sheet. The fundamental principle is that whatever goes out of the business is Cr., and vice versa, that whatever comes into the business is Dr., always remembering that the business and its owner must be considered as two distinct factors. As e.g., if the owner draws 110 out of his business the Cash or business is Cr. and the owner Dr. to the business. The following are some of the forms of the journal in use, viz. : Date. Particulars. Folio. Dr. Cr. 1894 Jan. 6 John Black 7 2000 To Goods 8 2000 65 Date. Dr. Folio. Amount. Or. Folio. Amount. 1874 Jan. 6 John Black 7 2000 Goods 8 2000 Amount. Folio. Particulars. Folio. Amount. 2000 7 John Black, To Goods 8 2000 Every book, which is self-balancing, may be termed a journal. Take for example a Sold ledger. The individual sales are posted to the Dr. of the personal account, and the total sales, weekly or monthly, as the case may be, are posted to the Cr. of an account, which may be termed a General Sales Account. The remittances are posted to the Cr. of the several traders accounts, whilst the total cash received is posted weekly or monthly to the Dr. of General Sales A/c. Thus the Sold Ledger is self-balancing and consequently final. The same remarks apply inversely in regard to the Bought or Purchase Ledger. The great advantage arising from the use of the journal is that it is conducive to thoroughness and accuracy. Of course, on the other hand, it may be urged that in these competitive times it is antiquated, and causes a great waste of time. For setting out the liabilities and assets of a business the journal offers a very useful medium, and though it is un- necessary to employ a journal for their intermediate entry, is highly desirable that there should be one for this purpose, as no entry should be made directly into the ledger. In the case of liabilities and assets, if a journal were not in use, the capital account would appear very full if there were many items, and from this account in the ledger the various items comprising the assets and liabilities would require to be posted to their respective accounts, and there would consequently be no intermediate record an unscien- tific mode of treatment, which it is to be hoped possesses no fascination for book-keepers. The journal is extremely useful in cases of consignments, or indirect sales, payments by acceptances, hire and pur- chase and optional sale, and to return transactions, forfeited shares, nominal amounts received on application and allot- ment of shares, depreciation, and in order to carry out the principles of double-entry, total sales, purchases, cash re- ceived, paid away, and all entries necessitated by the adjustment of accounts. Where the Code Napoleon exists the use of the journal is compulsory. Where a Sales Returns Book and a Purchase Returns Book are kept, its value is, of course, to some degree reduced. Apart from this fact, however, it is generally considered an useful and a necessary book, and its adoption is to be recommended. Stocks. There may be said to be two kinds of Stocks, viz.: I. Stocks of those who both buy and sell, II. Stocks of manufacturers, and the object of a Stock a/c is to enable the merchant or manufacturer to ascertain what is the state of his stock without actually taking it. 67 A Statistical Book, sometimes called an Inwards and 'Outwards Book, or generally a Stock Book, is usually kept, and from this is taken the quantity of stocks on hand at the period of balancing, which should agree with the inven- tory as per actual survey. In large works the Stock Book should be ruled so as to allow of spaces for the various kinds of stores, and the storekeeper should have instruc- tions not to issue any materials or stores unless he receives a requisition in exchange, duly signed, and stating the appropriation. He should also obtain receipts for all issues. Such a system would be a guard against misappropriation, and act as a check on the delivery of materials. In costing it would be readily seen what materials and stores have been used for each specified work, and the chance of error or omission, when submitting tenders would be reduced to a minimum. The following are some of the points to which the atten- tion of the auditor should be directed in connection with stocks : The inventory "as per actual survey" should agree with inventory "as per account," either actually, or with the assistance of an accounting statement. The Stock Account should be properly closed in ink, and signed by the party responsible for taking the stock, and countersigned by the secretary, the stock being calculated at prime cost or less. It is better that it should be slightly undervalued rather than that it should be calculated in excess of its actual worth or realisable value. If any doubt arises procure the services of an expert. Check calculations, totals, etc. Check purchase and sale returns, and see that proper credits have been given. 68 Purchases and Sale Books and Invoices. Invoices received, sometimes termed " Inward," are pasted into a guard book and numbered and indexed. They are, however, generally kept on files until paid and passed through the books. In examination it must be seen that they are intended for the company, and where neces- sary properly receipted. The Purchase Book records all the purchases or particu- lars from the foregoing invoices, and the entries in it may be checked therefrom and thence into the Personal and Real A/c ledgers. With regard to invoices outward, these are copied into the Invoice Copying Book, and the Sale Book records all such particulars. A note should be made of credit notes, consignments, adventures, transactions of goods sold, and to return, provisional invoices, shortages, account sales, indents, pro-forma a/cs, etc. Sometimes an independent book, called a Day Book, is kept, in which each delivery of goods is debited when des- patched, and each purchase credited when it has been reduced by a delivery. The deliveries may be checked with the advice notes, if necessary. Each invoice when checked should bear the initials of the persons who has checked it. In large concerns such as railways, every account is initialed by the person who is responsible for receiving the goods, and is afterwards signed by the chief clerk and superin- tendent, or manager, before it is passed forward to the accountant for payment. A very useful stamp for invoices is that shown in the following form: 69 CERTIFIED. Quantities Prices Calculations Manager Finally each invoice should be checked with the entries in the books, and in checking calculations great care must be exercised. It is better to be slow and sure than quick and uncertain. Reliable calculations are rarely rapidly performed, and a small amount of work upon which de- pendence can be placed, is preferable to a large amount of work, which cannot be shown or analysed without fear and trembling. Ledger. Some of the auditor's duties in connection with le grand lime are, briefly, as follows : Check postings from Subsidiary Books. Check Additions. Check Balances ; and See that each account is properly closed. STATISTICAL BOOKS. Directors' Minute Book. Contains an account of the proceedings of the directors at their meetings, which are held once a month or oftener. The notes are generally taken by the company's short- hand clerk, and the minutes are afterwards transcribed in the Minute Book, which is then indexed. The Minute Book should be referred to as the authority for expenditure upon new works, increase of capital (see also articles), payments, settlement of claims, wages, ap- 70 propriation of expenditure, whether capital or revenue, payments of dividends, and therein may be found whether the proceedings of the Secretary are in accordance with the instructions of the directors. There is also the Shareholders' Minute Book. In railways, there are various Committees of Directors, with a chairman for each of them ; as, e.g., finance, traffic, way and works, locomotive and stores, etc. Loan Register. Contains particulars of loans other than those by mort- gage. The information tabulated in this book should be under the following heads, viz.: I. Names of borrower and lender. II. Amount borrowed. III. Date. IV. Rate of Interest. V. Conditions. VI. Date when instalments are due. VII. Amount of instalments. VIII. Amount of interest and principal. Transfer Ledger. As its name implies contains an account of all transfers of shares. The cancelled certificates of transferors should be attached to the deeds, and the transfer deeds or documents should be carefully inspected as regards execution. The Minute Book is the authority for transfers. The auditor should check the postings from this book to the shareholders' ledger, and the registration documents should be kept in a guard book. The following is the general form of a Transfer Ledger. 71 Form of Transfer Ledger. Distinctive Nos. From To li r Remarks Call Book. This book records all calls made on account of shares. Entries for the nominal amounts to be received are made in the Journal, and the amounts actually received are posted into the Cash Book and thence to the Shareholders' Ledger. Allotment Book. The allotments, initialed by the Directors, are checked with the counterparts of the Share Certificate Book, and afterwards with the Share Ledger and Bank Pass Book. Calls may be similarly checked. Mortgage Register Book. The principal particulars of transactions in which money is borrowed by the Company on mortgage are recorded in this book. The authority will be traced to the Memorandum of Association and the minutes. Check the payments with the Pass Book, the additions and balances. The other books, such as Register of Agreements and Contracts, Annual Summary of Capital and Shares, Agenda Book, Share Certificate Book, Seal Book, Transfer Certifi- 72 cate and Share Certificate Books, Register of Share War- rants, call for no particular comment. The following is a ruling for an agreement book : Form of Agreement Book. Date of Agreement. Parties to the Agreement. Subject. Provisions. Remarks. Revenue Accounts. A profit and loss or revenue account is prepared from impersonal a/cs, and shows the result of trading. Net revenue a/c is only another term for profit and loss a/c, and gross revenue a/c for that of trading a/c, the items in the latter representing the cost of production, and those in the profit and loss a/c, the cost of distribution and administra- tion. It is almost unnecessary to state that the trading a/cs should be shown separately from the profit and loss a/cs, and the balance brought down to the latter a/c, in which the various items of the nominal a/cs are debited and credited, the difference between the totals of the two columns result- ing in either a net gain or loss as the case may be, which in a non-limited concern is transferred to the current or appropriation a/c, and the balance of that a/c carried forward to the capital a/c. In the case of a limited liability company, a third division is made when the balance has been carried down for such items as income tax, interim dividends, bonuses, reserve funds, etc. Some of the items to which the auditor's attention should be drawn are : See that any interests on mortgages or mortgage deben- tures or fixed interests are included before any division of 78 profit is made, and check the interest on the mortgages with the vouchers. See that no capital charges are included in the a/c. To produce a low statement of working expenses, the practice of charging to capital, items which should be appropriated to revenue, is common. See that discounts directly affecting purchases and sales are shown in the trading a/c. See that there is no improper grouping of charges. See that credit is duly taken for transfer fees, and that premiums on new shares are not credited in the a/c. The latter should go towards the extinction of fictitious assets, or be appropriated to a reserve fund. Credit is often taken for the enhanced market value of shares (contingent profits), and, if allowed, certify accord- ingly. In hire-purchase transactions the calculations showing the capital value and interest should be checked, and if a suspense a/c is raised it should be seen that it is regularly debited with the proper amount of interest, which will, of course, form a profit and loss item. Credit or debit, as the case may be, any difference in Exchange. Appropriate to capital broker's payments on account of the placing of shares. Note proper proportion -of rents, premiums, etc., paid in advance, and all closing entries. It is the practice of some companies to instruct their bankers to hold so much money solely for the payment of dividend, less income tax. The warrants are then sent out, and when the whole of the interest has been paid they are returned to the company with the Bank Pass Book. If there is anything unsatisfactory, the auditor should 74 ask for a statement from the bank of what has not been paid from the dividend a/c. . The same practice often obtains in regard to the payment of interest on debentures, the coupons being returned as the interest is paid. Apropos of the subject of dividends, it is far from being a pleasant duty for the chairman of a company not to be able to declare a dividend. Apart from the general cause, viz., trade depression, it may be due to a company being over capitalized and the working expenses not being in proportion to the revenue. Some companies, especially railway, have to pay more than half of their earnings in satisfaction of interest on debentures, leased mileage, guaranteed stocks, etc., with the result that the ordinary shareholders have to be content with humble pie. See that depreciation is duly debited. In regard to interest upon capital and drawings, where the capital belongs to the partners in the same proportions as they share profits, it is matterless whether interest is charged or not, as the result is the same, there being a diminution of profits and a corresponding increase of capital if charged, but in principle no profit can be deemed a true profit until after capital has been charged with interest. Where the drawings and shares of profit are in the same ratio, no interest need be charged, but where drawings have taken place in excess of the due proportions profit and loss should be credited and capital debited with interest. Balance Sheet. Taking the assets, the auditor will probably find, amongst others, the following, viz.: Preliminary Expenses. These are generally written off 75 at one-fifth or more at each declaration of dividend until extinguished. They should be shown in the balance sheet at their original cost, less the amount written off. Goodwill. Like the preceding subject is a fictitious asset, and should be gradually written off. If there should be a reserve fund on the opposite side these two assets should not, of course, exist. Contracts. If a builder or merchant has obtained a large contract, which is in course of progress towards completion, it should be shown as an asset less the instalments received on contract account. Leasehold Buildings and Erections. This item should be properly depreciated. There are usually three methods of depreciating, viz.: I. Sinking Fund. II. Annuity. III. Writing off an equal yearly proportion of the original amount. As, however, in many other matters, the auditor must in this be guided to a great extent by experience and circum- stances. It is unnecessary to write off depreciation where what has been already deducted is equal to what the depreciated asset would realise in the market at the time. When ex- tensive renewals and repairs have taken place it is uncalled for, or at least it should only be provided for to a small degree. The latter accounts for the non-appearance of depreciation in the accounts of railways and similar under- takings. In purchase leases or hire-purchase a/cs deprecia- tion should be charged upon the real value, i.e., less interest which is charged upon the diminishing balances and which is included in revenue account. Trade Debtors. It should be seen that due provision is 76 made for bad and doubtful debts. There is also the question of discounts. (See note under "Cash Book" as to effective verification of outstanding debts.) Stock. (See section under this head.) Cash at Bank. Investments. Trust investments and investment of the company's funds should be indicated separately in the balance sheet, and the former should be examined in con- junction with the securities, whilst it should be seen that the latter are in accordance with the minutes and articles. When stocks have appreciated, and been realized, credit should be taken for the profit. When, however, they are even at a small premium and no realization takes place, the figure in the balance sheet should not exceed cost price when the latter is under the market value. As regards inscribed stock, check the names of the trustees and note carefully. Plant and Machinery. Note additions to plant and see that it is properly depreciated. Bills Receivable. Note discounts, contingent liabilities, and proper provision for doubtful bills. Mortgages on property should be duly deducted from its value. L/iabilities. The liabilities to the shareholders should be shown thus : Amount of share capital. ,, calls paid on share capital, ,, ,, in arrear (minus). ,, advance. ,, shares forfeited (shown separately). In a partnership it will be necessary for the auditor to UNIVERSITY 77 make himself familiar with the provisions of the deed, and to see that capital a/c has been duly charged with drawings and interest. Bills Payable require careful scrutiny. Deal with dis- counts. Sundry Creditors. Similar remarks to the above apply under this head. Reserve Fund. See that the amount is properly invested either in the business or outside of it, and if in various stocks, that each stock is clearly shown. This item in actual practice is very often a " farce." Notes should be made of contingent liabilities on bills discounted, but not matured, and claims not recognised by the company as debts. (See Company Balance Sheet, Table A.) GRAIN ACCOUNTS. It is perhaps unnecessary to state that the grain trade (which by the way is not a highly remunerative branch of business, with wheat at 16/- per quarter), corresponds with other trades in possessing its own peculiarities in regard to customs and general conditions of sale and purchase. For example, London terms for foreign wheat arrived at P.o.c. (port of call) may be C.i.f., t/q (tale quale), cash against documents in London, payable seven days after date of purchase, or by shipper's draft at 60 days' sight, with documents attached, sold for 480, 492, or 500 Ibs. per quarter, delivered, sea damage for seller's account, and so on, the conditions varying according to the current terms of the countries and places from which grain is imported and purchased. The terms upon which cargoes of English grain are sold are generally either F.o.b. or C.i.f. In the former case 78 the shippers pay the expenses on board only at the loading port, the consignee paying the freight and insurance. In the latter case, the seller pays both freight and insurance and the cost of putting the cargo on board. Supposing a cargo is bought at 38/6 F.o.b., the cost price would be probably arrived at in the following manner, viz. : Price 88/6 Insurance 1 Freight l/- Wharfage, or Dock Dues ... 2 Landing to rails 2 River Dues i Ex-ship the cost would be.. 40/- 2 2 The cost free on rails (F.o.b.) would be 40/-. The cost (C.i.f.) would, of course, be 38/6 + 2d. + 2d.+ =38/11. In delivered sales, the carriage is, of course, added to the cost, which with the amount of profit, equals the price to the buyer. The following are imaginary examples of F.O.B. and C.i.f. invoices : (1) Glasgow, Jan. 6/91. J. Thompson, Esq., Liverpool. To Adam West, Dr. 1891. Jan. 3rd. For 2,500 qrs. No. 1 Calif. wheat, as per speared sample, @ 40/- per 604 Ibs., F.o.b. net cash, against documents 5,000 Per S.8. " Earsdon." As already indicated, in addition to 5,000 Os. Od., the 79 buyer would meet freight and insurance charges and all other expenses at the port of discharge. In the case of a F.o.b. cargo any amount advanced to captain on account of freight is, of course, included in the shipper's invoice, and the consignee deducts the advance from the total amount of freight payable by him to the captain. Sometimes F.o.b. offers include insurance, but never the freight. (2) Glasgow, Jan. 6/91. J. Thompson, Esq., Liverpool. To Adam West, Dr. 1891. Jan. 3rd. To 5,000 qrs. South County white wheat @ 40/- per 504 Ibs. 10,000 Less If % discount 125 9,875 E. and O.E. Per S.S. " Earsdon." C.i.f. to Sluice. In some C.i.f. transactions, when it is arranged for the freight to be paid by the consignee, the shipper deducts this charge from his invoice. The form of invoice below is one that is usual when a sale has been made less 5% for the unexpired time of one month ; which is London practice. London, November 8th, 1874. Mr. W. Wikner, Wainton. To James Thompson & Sons, Dr. Per S.S. " Chatterton " from London to Wainton, to your order. Terms cash, less discount at 5% for the un- expired time of one month. 80 1874. Nov. 8th. To 200 qrs. Indian wheat @ 496 Ibs. per qr., 60/- per qr. alongside steamer 600 To Insurance prem., 600 @ 8/-%and stamp 19 600 19 Less Interest on 600, viz.: Nov. 9th _ days at 5% 278 Nov. 9th. By Draft ... 500 59811 4 Insured under our floating policy at Lloyd's for 600, completing purchase. ANOTHER FORM OF INVOICE. London, Jan. 24th, 1891. John Thompson, Esq., Liverpool. 1891. To Westcott, Marshall & Co. Jan. 24th. To 986 bags Calif, wheat, 800 A qrs. @ 89/6 per 480 Ibs. 592 10 T T , Feb. 8th Less Interest = 16da y 8 * 6 591 4 Premium on 700 @ 2/-% and Policy stamp ... 17 C. qr. Ibs. ,, Lighterage on 1285 2 24 @ 1/8 per ton 404 596 1 4 Per S.S. " Charles: 1 The following is one of the usual forms of an insurance broker's account : 81 London, Jan. 6/75. J. L. Whimeley, Esq., Wainton. To M. Purple, Dr. For insurance effected as under : Per S.S. "Sea Queen," 12,000 @ 6/8% ... Less 10% Commission... Amount. Policy Duty. Total. 40 400 1 10 36 1 10 37 10 Dover, January 6th, 1875. J. L. White, Esq., Wainton. In account with M. Purple. To Freight on 4989| Ai qrs. wheat @ I/- per qr. ... 249 9 4 Gratuity 220 251 11 4 Wharfage on 49801 ai qrs. @6d. ifi 12 9 5 ,, Delivery to rails, 2500 qrs. @ 4d. " 434 ,, Transhipping 2489 qrs. @ 9d. ^ 968 ,, River dues on 4989 qrs. @ iper qr 10 7 10 Samples 026 By Cheque on account of freight Per S.S. " Sea Queen." Note 10 = 10 qrs. (last). 86 9 9 288 1 1 200 88 1 1 82 English wheat as a rule is sold at the rate of 504 Ibs. per quarter, or 68 Ibs. to the bushel ; foreign wheat at 400, 480, 492, 496, and 500 Ibs. per quarter; Oats at 336 Ibs. per quarter, or 42 Ibs. per bushel, also at 304 Ibs. per quarter; Barley at 448 Ibs. per quarter, or 56 Ibs. per bushel ; and Maize at 480 Ibs. per quarter, or 60 Ibs. per bushel. At Liverpool wheat is sold per cental, which is equal to 100 Ibs. With this brief introduction we may now turn our attention to the principal books (statistical and account) in use in a Grain Merchant's office. They are as follows, viz. : Cash Books, Purchase Book, Sale Book, Day Book, Bills Receivable Book, Bills Payable Book, Journal, Cargo Book, Stock Ledger, Ledger. Cash Book. To record the cash transactions two books are employed, viz. : the Principal and Petty Cash Books. The entries in the former book are sometimes made in single cash columns, which, in the first place, necessitate a detailed bank account in the ledger ; secondly, that for every cheque remitted, the bank is debited, and thirdly, that bills of exchange are debited or credited when received, paid or dis- honoured, as the case may be, the incidental expenses, or 88 " sundries as per Petty Cash Book" being debited at the end of the month to " trade." It is balanced at the end of each month, and the balance generally consists of Petty Cash and Bills Receivable on hand. In some houses the form shown in the illustration is used, which, as will be seen, provides for both cash and bank, as well as for dis- counts. Properly speaking, every receipt should be banked, and a cheque drawn for every payment, except such as come out of petty cash. Were this done, there would, of course, be no necessity for cash columns. The Petty Cash Book calls for no comment. Sometimes it is kept in the form marked "A," which is known as the " Imprest System," but more generally in the ordinal y way, as shown by the form marked " B." Purchase Book. As its name implies, records all purchases, which are, as a rule, confirmed by sale notes. (See Form). Sale Book. This Book contains a record of all sales made day by day, both at markets find by post. It may here be remarked that invoices are not rendered until advices have been received of the dispatch of the goods, unless otherwise arranged. (See Form). . Day Book No debit is made until the goods have been ordered off, when the purchase is credited. (See Form). BILLS RECEIVABLE AND PAYABLE BOOKS. Bills Receivable. When a bill is drawn, it is copied into a Copy Bill Book 84 before being sent out with invoice for acceptance. When returned, it is entered into the Bills Receivable Book, and it is usual first for it to be credited in the Cash Book, no further entry being made until it is paid into the bank for discount, or collection. In the illustration, however, the bills are posted directly from the Bill Books, and are only entered in the Cash Book when passed through the bank. Bilk Payable. When the bills are accepted, they are entered in the Bills Payable Book, and when cheques are sent to the bank in payment thereof, the bank is credited, and Bills Payable debited. Copy Bill Book. A record of the particulars of Bills of Exchange posted for acceptance. Form : Date sent out. To whom sent. Date of Bill. @ Amount. Date returned 1884 Jan. 8 William West Jan. 2 1/mo. 50 5 4 1884 Jan. 6 Journal. All the entries in the Day Book are posted into this book, separate spaces being allotted for the debits and credits of the various kinds of grain, discounts, interests, commissions and salaries being charged to the trade accounts. In some houses, the trade discounts are not posted to the trade account, being deducted from the gross amounts of the sales and purchases before being carried out into the money columns. The journal is balanced monthly, the totals being carried to the Stock Book, when the 86 difference should agree with the stock balance. The items from the Day Book are posted daily into the Journal, and thence into the ledger. Cargo Book. Contains an account of the disposal of cargoes and large purchases, and is entered up from the Sale Book. From this book is readily obtained the quantity of stocks on hand for the market. Stock Ledger. The totals are posted from the Journal to this book, and the difference should be the stock on hand, which is verified by taking the quantities from the Cargo Book, or taking the actual stock, the latter being taken every six months. Advices. All advices of grain transferred, delivered or forwarded, are checked with the entries in the Day Book, and after- wards filed. Files are also kept for Carriage Accounts, Receipts, Bills of Lading, Charter Parties, Labourage Accounts, etc. With regard to foreign wheat in bags, it is not always known to a bushel or pound what quantity is despatched, and the debit is, therefore, left open in point of quantity until the advice is received. Station Agents' Books. A request to the station Agent to deliver grain " to my order" to consignee, which has been sold delivered, or carriage free, and in which the Agent is also requested to send the account for the carriage to the consignor. Documents. An initialed cheque is presented to the bank in due course on an advice being received that the shipper has passed the documents through his bankers, and that the ship has sailed. In exchange for this cheque, the consignee receives the invoice with Bill of Lading. An invoice is also sent by post direct to consignee. The latter now endorses the Bill of Lading (if to order) " Deliver to ," and it is sent to the dock Agent with a cheque for freight, less the amount advanced by the consignor, if an F.o.b. cargo. Market Eeport. This is sent to various merchants and traders on market days. It describes the state of the market, and is, of course, drafted after the market is closed. Beerbohm's List. This is a pamphlet received every morning, giving full particulars and reports of the condition of the grain trade, and business done at different markets, stocks of grain, float- ing cargoes, vessels loading, vessels arrived at port of call and awaiting orders, and all information in connection with the trade. Ledger and Balancing. In complicated Ledger accounts the items on the Dr. and Cr. sides, which refer to each other, are marked alpha- betically, as shown in the example, for the purpose of ascertaining without much trouble the balance of such accounts, and also for showing the reference to each other of the Dr. and Cr. items. The balancing is performed half-yearly or yearly. ^oooco oocoo CO 9*00000 O O 05 O rH 2 O O O O O "* O CO O s n wheat do. do. do. do. , 50qrs., @ 100 200 500 250 9. Cr. 40s. 40s. 42s. 40s. 40s. inns. 100 200 210 1000 500 2010 89 Dr. To Dock Bate, Landing, Lofting, Port dues, Rent, Turning carriage, etc., as per vouchers herewith 100 Freight and Gratuity on 1150 qrs. wheat 55 Two months' discount on 500 10 Telegrams and incidentals ... 10 Commission on 2010 @ 5%.. 100 10 256 10 1753 10 E. & O.E. Cheque herewith for 1758 10s. Kindly acknowledge receipt, and return Vouchers. Invoices Inward. These are kept on a file until checked and paid and passed through the Journal. They are afterwards filed into a book and indexed. Invoices outward are copied in a book, and indexed in the same way. Bank Pass Book. The entries in this book are checked with the Ledger account, or account in the Cash Book weekly, and a recon- cilement account made out as shown in the example, the discount calculations also being checked at the same time. 90 Dr. RECONCILEMENT ACCOUNT. LEDGER ACCOUNT. John Smith, London. O. 1875 Dec. 31 To Balance 1876 Jan. 1 ,, Cash 100 400 1876 Ian. 3 By R. Morris - 4 do. ,, 5 ,, D. Robins 20 5 85 ,, 9 M 650 o W. Best 10 ,, * * j> ,, 500 7 ,, D. Robins 30 M 12 n 100 9 ,, C. Ives 100 M 18 M 250 ,, 12 do. 150 14 ,, 200 16 do. 100 M M R.CharltonSO Balance=l,700. Account, as per Pass Book, which is written up to 13th January. 1876 1875 Jan. 1 To M. Sims 10 Dec. 81 By Balance 110 1876 ii 3 ,, R. Morris 20 Jan. 1 ,, Cash 400 M do. 5 9 do. 650 H 5 ,, D. Robins 35 ti do. 500 it M. Best 10 12 ii do. 100 7 D. Robins 80 18 do. 250 H 9 C. Ives 100 i) 12 do. 150 Balance=1650. 91 Eeconcilement. Balance, as per Ledger Cheques not presented at Bank for payment up to the time of balancing, viz. ... 100 50 1700 150 Jan. 14. Payment not entered in Bank Pass Book at the period of balancing . . 150 1850 200 1650 B. Pass Bk. 1650 Note. The difference between the balances of the Bank Account in the Cash Book or Ledger, and the Bank Pass Book, shows the amount of cheques not presented less the amount paid into the bank, but not credited in the Bank Pass Book. When a discounted bill is dishonoured, and it is agreed with the acceptor for the drawer to take it up, and for the former to pay the latter a certain sum of money in cash, and to renew the bill for the balance, the account should be as follows : Amount of bill dishonoured . . . 500 Discount 500 Noting expenses 200 B/Stamp for renewed bill ... 050 By Cash 507 5 100 407 5 Discount on renewed bill ... 10 Amount for which the bill should be drawn 408 5 92 SPECIMEN PAGES OF BOOKS. PURCHASE BOOK. January, 1891. Name. Quantity. Descrip- tion. I Price. Weight. Ex. John Thompson Qrs. 500 Wheat o 88/- net a side Ibs. 504 . Queen R. Nelson 200 Oats 00 19/- 2/mos. 286 Warehouse W. Raines ... 190 Barley SO 28/- less 2/mos. 448 Warehouse John Thompson M. Mentor 100 24 tons. Maize Oat dust 27/- net 3/10/- 1/mo. 480 2240 Sea Queen do. SALE BOOK. January, 1891. Name. Quantity. Descrip- tion. i Price. Weight. Ex. W. West Thos. Avery ... 25 qrs. 82 Wheat do. 40/- 42/- 504 Queen do. R. Nelson Thos. Avery ... 20 qrs. 21 ,, Wheat Oats OQ 41/6 net 22/- net 524 886 Queen W'hse. R. Fothergill ... do. Lewis Ferns ... W. West 24 qrs. 24 5 tons 80 qrs. t\J Barley Maize Oat dust Wheat 26,- 27/6 8/15/- 48/6 448 480 209 504 W'hse. Sea Queen do. do. 93 O O - GQ Remarks. oipj it 2g = J2 Drawers. 1! 03 03 *& a jConajjno) RFoth CM 94 ^ <: rip * " g Po 1 4.1 - s -so" ^ r o co XO CO CO 00 O O . CO 2 * SOD ^ - CM T-I 6 ** :- ^ _ - _ 8xcM OQi-i O^O CMCO CMCDCM OCMO CM . - 0-^ o lp.9 S M C 95 CARGO BOOK. South country white wheat ex "Quern" per John Thompson. 500 2/8 16 25 1 4 ex ship. 82 5 24 1891. Jan. 1. 31. W. West T. Avery E. Nelson W. West 80 ,, w'h'se. Stock 89 8/8 51. Note. In case of shortage it is debited to "Wheat A/c" if the quantity is below that credited in the books, and if there is no arrangement to the contrary. When grain has been in warehouse some time and naturally runs short of the quantity bought, the shortage is also debited to " Wheat A/c." If, however, grain has been bought and paid for on a pro- visional invoice, and not weighed over for buyer's a/c, the shortage can be claimed, and it would, therefore, be debited to sellers. CASH BOOK, Form A. Dr. Or. L. F. Date. Receipts. Dis. Cash. Bank L. F. Date. Payments. Dis. Cash. Ban 96 coco:oocooo CO C 3 OrH*OrHOCO00 rH H EH CD ^D ^D ^D ^D CD ^D O^ TH 00 "^^ rH O C g 3 1 CO O CO O O Jj S O rH CO O rH o X w O O O * ~~-~- >, o Hpq H . rH *" rH rH rH rH O3 GN O^ CO 5 j rH O5 g s f S 2^ . CO CC > 'd g I rH r- rH r- o S g S I S 97 SPECIMEN PAGE OF FORM OF JOURNAL. 7 6 January, 1893. Wheat, Dr. to Sundries. Thomas Reeds. 20 qrs. at 25s. 504. 25 10 Ex. Sundries, Dr. to Wheat. John Bolton. 10 qrs. at 80s. 504. 15 Ex. The first item indicates a purchase, and the second a sale, both being posted from the Day Book. PETTY CASH BOOK. 1891 Dr. 1891 Or. Jan. 1. To P.C. Jan. 1. By Candles 006 Balance... 50 4. ,,Telegrams 012 12. ,,B/Stamps 050 14. Papers ... 1 17. Cartage... 007 19. Dinners.. 086 24. Postage ..023 25. ,,Travelling Expenses. 2 10 27. ,, Printing Stationery 176 , 31. ^.Thomp- son's Sal. 800 J. Arkless ,,430 Balance ...33 5 6 50 00 50 1891 Feb. 1. To Balance, 33 5s. 6d. TERMS CURRENT IN THE GRAIN TRADE. D.W. Dead Weight. Tale Quale. When a cargo of grain is sold by speared or drawn sample at the port of call, it is understood that the bulk is equal to the sample in quality, and that any damage to the former in course of transit to the U.K. port is borne by the buyer. U.K. United Kingdom. C.i.f. or C./.t. Cost freight and insurance. F.O.B. Free on board. Jofo. Journal folio. F.O.W. Charter. First open water (Baltic sea term). C.F.O. Call at Cork for orders (U.S.A. term). Last, or J?-. Ten quarters. Quarter. Bushel. Pounds. Wheat ... 504 ... 8 ... 63. Barley ... 448 ... 8 ... 56. Oats ... 886 ... 8 ... 42. Maize ... 480 ... 8 ... 60. Deld. Delivered. P.O.C. Port of call. Frt. and Grat. Freight and Gratuity. D.F. Dead freight. C/P. Charter Party. /L. Bill of Lading. Invo. docjattach. Invoice with document attached. BjD.~- Bank draft. A/P. Account paid. A/S. Account sales. i 'alif. Californian. Wharf aye. Dues paid for the use of a wharf. River dues. Dues paid for the use of a river. 99 Hat money. A gratuity paid to the captain for taking care of the cargo during the voyage. It is, however, now generally included in the freight. S.G. On Lloyd's policies. Salutis Gratia, reserved. Jetsam \ Goods thrown overboard with a view to Jetsoti [lightening a ship in peril; or goods thrown Jettison ) overboard. Flotsam. Goods found floating on the sea. TRANSFER OF STOCKS AND SHARES. Stocks and shares are sold either cum or ex dividend, the former meaning that the purchaser will receive interest at the next declaration of dividend, and the latter that the seller reserves the right to receive the interest on the stock or shares sold when the next dividend is declared. A transfer may be effected in the form subjoined to which the broker obtains the signature of the seller. The docu- ment is then forwarded to the purchaser, who signs it, erstwhile uttering the words, " I deliver this as my act and deed," and whose signature is attested by a witness not having any interest in the purchase, stating his prof ess-ion, occupation, or'rank. This is assuming that the purchaser wishes the securities to stand in his own name. If not, the name and full particulars of the transferee must be dis- tinctly and fully stated. Having arrived at this stage of negotiation, the transfer deed is returned to the broker, who now sends it to the company for registration in their books with the seller's certificate, and if in order, the latter is cancelled, and the purchaser's title to the stock or securities is finally com- pleted by his receiving the usual form of certificate in his name, stating the amount of financial interest he possesses in the company. The deed must, of course, be stamped, 100 though it is unnecessary to do this before execution, but certainly within two months. The value of the stamp, which should be impressed, is regulated by the sum paid by the purchaser for the stock or securities, and by whom the charge is generally payable. According to the Companies Acts the Share Transfer Register of a company may be closed 14 days previous to the ordinary meeting, and the day of closing may be fixed by the Directors, of which day the company's Secretary shall give seven days' notice by advertisement. The term given to this period during which the dividend warrants are prepared is, " Shut for Dividend." If a purchaser is unable to get his transfer registered before the term, and has bought the securities cum div, this will be received by the seller, to whom the transferee must look for payment of the dividend which has been declared. Before registering a transfer the company would write to the seller somewhat as follows as a precautionary measure : "We have received a transfer for registration from purporting to be signed by you, as per particulars on other side, and if I do not hear from you by return of post to the contrary, I shall conclude the same to be in order and correct. Secretary. Form of Transfer. Transfer of J John Black, of 29, The Crescent, Leatherby, orSt^k. * n consideration of the sum of One Thousand Pounds, paid by John White, of Lumberton, Centerley, hereinafter called the said Transferee. Do hereby bargain, sell, assign and transfer to the said Transferee One Hundred Shares of Ten Pounds each, numbered 100 to 199 inclusive, each share fully paid up and in the undertaking called the " Guinea Pig Company." 101 To hold unto the said Transferee his Executors, Adminis- trators and Assigns, subject to the several conditions on which I hold the same immediately thereof ; and I the said Transferee do hereby agree to accept and take the said Shares, subject to the conditions aforesaid. As witness our hands and seals the Fourteenth day of January, in the year of our Lord, One Thousand Eight Hundred and Ninety-one. Signed, sealed and delivered ^ by the above named in > John Black. [ L. s. the presence of j Signature : Thomas Black. Address : Blank House, Blankerlow. Occupation : Clerk. Signed, sealed and delivered ) by the above named in V John White [ L . s. the presence of j Signature : William Henry. Address : Court Avenue, Yokerton. Occupation : Solicitor. Here space is allowed for two further signatures and witnesses, but it is usually left blank. In cases where transfers are executed out of Great Britain, the signatures should be attested by a Notary Public, H.M. Consul or Vice-Consul, or by some one Hold- ing a public position. COSTING. By costing is meant a methodical and analytical com- pilation of wages, materials, and direct and indirect 102 expenses for the purpose of arriving at the accurate cost of works in general, and consequently for guidance when pre- paring competitive estimates. In these fast day s^ when keen competition is rife, a simple and reliable system of costing is essential to the success of all producing and contracting concerns. It is important that the record of materials, wages, and expenses should be so arranged that the condition of each work, or contract may be seen almost at a glance. To proceed upon true accountancy principles it will be assumed that the following represents the balance sheet of John Science, Shipbuilder and Repairer, at the 30th June, 1874 : Liabilities. Assets. Bill Payable . . . 1000 Slipway 2000 Sundry Creditors . . . 500 Plant and Machinery 3000 Capital 18050 Graving Dock ... 1500 Land and Buildings 2500 Working Plant and Tools 1950 Sundry Debtors ... 8000 Bills Receivable ... 500 Bank 5000 Cash .. 100 19,550 19,550 As although the commercial and costing books are kept separately, cognizance of the former must be taken in the shape of the balance sheet, in order to fully carry out the principles of double-entry in costing. 103 In Mr. Science's Costing Department the following are the principal books in use, viz. : Cost Journal. Cost Ledger. Time and Wages Books. Stores Books. Abstract Ledgers. It will be seen from the balance sheet that he has no works in progress, but that from the Cost Journal for July he has received orders for the building of three ships, and the repairs of two small vessels. COST JOURNAL. Date. Particulars. Folio Dr. Cr. 1874. Capital A/c 1 1500 Julyl To Sundries Bills Payable 1 1000 Sundry Creditors 1 500 Julyl Sundries To Capital A/c 1 Slipway 1 2000 19550 Graving Dock 1 1500 Plant and Machinery 1 3000 Land and Buildings 2 2500 Working Plant and Tools .. 2 1950 Sundry Debtors 2 3000 Bills Receivable 2 500 Bank 2 5000 Cash 2 100 104 Date. Particulars. Folio Dr. Cr. July 31 Sundries To Stores A/c 3 4050 For issues during the month S.S. "Kate" 8 250 S.S. " Maude" 3 350 No. 58 Ship 8 1000 No. 59 Ship 8 1500 No. 60 Ship 3 950 Sundries To Timber A/c 4 650 For issues during the month S.S. "Kate" 3 95 S.S. "Maude" 8 100 No. 58 Ship 8 105 No. 59 Ship 3 250 No. 60 Ship 3 100 July 81 Sundries To Expenses A/c 4 500 For indirect charges during the month S.S. "Kate" 3 65 S.S. "Maude" 8 90 No. 58 Ship 8 102 No. 59 Ship 4 128 No. 60 Ship 4 115 Sundries To Expenses A/c 4 50 105 Date. Description. Folio Dr. Cr. July 31 For direct charges during the month S.S. "Kate" 3 20 S.S. "Maude" 3 10 No. 58 Ship 3 10 No. 59 Ship 4 5 No. 60 Ship 4 5 CashA/c 2 3750 To sundries for receipts dur- ing the month B/Keceivable 2 200 Sundry Debtors ... 2 2450 Bank 2 900 Discount ... 1 200 July 31 Sundries To Cash A/c for payments during the month 3750 Bills Payable 2 300 Sundry Creditors 1 800 Wages 1 1950 t Salaries 5 100 Bank 2 400 Discount .. 1 200 July 31 Sundries To Sundry Creditors 1 8450 For purchases during the month Stores 3 5000 106 Date. Description. Folio Dr. Cr. Timber 4 1500 Iron and Steel 5 1000 S.S. "Kate" 8 100 S.S. "Maude" 8 150 No. 58 Ship 3 200 No. 59 Ship 4 300 No. 60 Ship 4 200 July 81 Sundries To Iron and Steel A/c. ... 5 797 For issues during the month S.S. "Kate" 8 150 S.S. "Maude" 8 200 No. 58 Ship 8 867 No. 59 Ship 4 50 No. 60 Ship 4 80 Sundries To Wages A/c. 5 1950 For Wages paid during the moth \ S.S. "Kate" 8 250 S.S. "Maude" 8 850 No. 58 Ship 8 400 No. 59 Ship 4 500 No. 60 Ship 4 450 Note. The indirect or office expenses are apportioned according to the amount of wages spent on each vessel, or according to the turnover of the business. The direct expenses are appropriated to the respective 107 works, or apportioned according to the number of hours worked upon each job. Cost Ledger. The entries in the Cost Journal are posted into this book. Dr. Capital A/c. Cr. 1874. 1874. July 1. To Sundries 1500 July 1. By Sundries 19550 Dr. Bills Payable. Cr. 1874. 1874. July 31. To Cash 300 July 1. By Sundries 1000 Dr. Sundry (Creditors. Cr. 1874. 1874. July 31. To Cash 800 July 1. By Sundries 500 81. Purchases 8450 Dr. Slipway. Cr. 1874. July 1. To Sundries 2000 Dr. Graving Dock. Cr. 1874. July 1. To Sundries 1500 Dr. Plant and Machinery. Cr. 1874. July 1. To Sundries 3000 Dr. Discount. Cr. 1874. 1874. July 31. To Cash 200 July 31. By Cash 200 Dr. Land and Buildings. Cr. 1874. July 1. To Sundries 2500 108 Dr. 1874. July 1. Dr. 1874. July 1. Dr. 1874. July 1. Dr. 1874. July 1. 81. Dr. 1874. July 1. 81. Dr. 1874. July 81. Dr. 1874. July 81. Dr. 1874. July 81. Working Plant and Took. Cr. To Sundries 1950 Sundry Debtors. Cr. 1874. To Sundries 3000 July 81. By Cash 2450 Bills Receivable. Cr. 1874. To Sundries 500 July 1. By Cash 200 Bank. Cr. 1874. To Sundries 5000 July 81. By Cash 900 Cash 400 Cash. Cr. 1874. To Sundries 100 July 81. By Payments 8750 ,, Receipts 8750 Salaries. Cr. To Cash 100 Stores A/c. Cr. 1874. To Purchases 5000 July 81. By Issues 4050 S.S. "Kate." c r . To Stores 250 ,, Timber 95 Ir. & Steel 150 Wages 250 Purchases 100 109 July 81. To Expenses (Indirect) 65 Do. (Direct) 20 Dr. S.S. "Maude." Or. July 81. To Stores 850 Timber 100 Ir. & Steel 200 Wages 850 ,, ,, Purchases 150 Expenses (Indirect) 90 Do. (Direct) 10 Dr. No. 58 Ship. Cr. 1874. July 31. To Stores 1000 Timber 105 Ir. & Steel 367 Wages 400 Purchases 200 Expenses (Indirect) 102 Do. (Direct) 10 Dr. No. 59 Ship. Cr. 1874. July 81. To Stores 1500 Timber 250 Ir. & Steel 50 Wages 500 Purchases 300 ,, ,, Expenses (Indirect) 128 Do. (Direct) 5 110 Dr. No. 60 Ship. Cr. 1874. July 81. To Stores 950 Timber 100 Ir. & Steel 30 Wages 450 Purchases 200 ,, Expenses (Indirect) 115 Do. (Direct) 5 Dr. Timber A/c. Cr. 1874. 1874. July 81. To Purchases 1500 July 31. By Issues 650 Dr. Expenses A/c. Cr. 1874. 1874. July 81. By Indirect Expenses 500 Direct do. 50 Dr. Iron and Stetl A/c. Cr. 1874. 1874. July 81. To Purchases 1000 July 81. By Issues 797 Dr. Wages A/c. Cr. 1874. 1874. July 81. To Payments 1950 July 81. By Sundries 1950 111 Remarks. 49 | 3 , | ' 5 M 49 a o pq ^ 02 2 -* W 5 5 c3 & P 60 1 5z; es < JS QQ H S 03 a AS ^4 O) h HH 0) EH H ft, o 5- H a (5 s M g 1 1 o j 1 OQ I g 1 1 H 1 a O A 1 1 1 J > i 00 | -^ i W5 - ^ d O 9 'd H o < rf 4. - ^ CQ. S^ _g CQ F "~ O CO .s-a c3 c3 O * M rt M ^ . e3 S 35" 0) "o It S 5S 1 * OQ " OT ^ . 1 1 s ~ S j H ^ 8 n 112 ORDER BOOK. This book contains an account of all orders received. Form. Date of order received. Name. Descrip- tion. Estimate. Remarks. Stores Book. This book records all stores purchased and brought into stock. Issue Books. There are Issue Books for Stores, iron and steel, and any other special material, and they are ruled to meet the requirements of each business. IRON AND STEEL ISSUE BOOK. Date of Issue. Description. Weight. Rate. Amount. Total. Appropriation. ABSTRACT LEDGER. This ledger is used for the purpose of recording the cost of each kind of labour, and the various descriptions of material supplied to each work or contract. 118 Form. .Ship. Date. Wages. Materials. Labourers. Total. Iron& Steel. Total. Note. The items in this ledger are abstracted from the Wages Time Books and the Issue Books. ABSTEACT FORM FOB PURCHASE OF MATEEIALS. Date. Columns for different kinds of materials purchased. Total. Stock at Jan. Feb. March April May June Total Stock at Issues 114 TRIAL BALANCE. Capital A/c 1500 19550 Bills Payable 300 1000 Sundry Creditors 800 8950 Slipway ... 2000 Graving Dock 1500 Plant and Machinery ... 3000 Discount 200 200 Land and Bnildings ... 2500 Working Plant and Tools 1950 Sundry Debtors 3000 2450 Bills Receivable ... ... 500 200 Bank 5400 900 Cash 3850 3750 Stores A/c. 5000 4050 S.S. "Kate" 930 S.S. "Maude" 1250 58 Ship ... 2184 2733 ,, 1850 Timber A/c 1500 650 Expenses A/c 550 Iron and Steel A/c. ... 1000 797 Wages and Salaries ... 2050 1950 44,997 44,997 115 BALANCE SHEET. Liabilities. Assets. Bills Payable ... 700 Slipway 2000 Sundry Creditors ... 8150 Graving Dock ... 1500 Expenses 550 Plant and Machinery 8000 Capital 18050 Land and Buildings... 2500 Working Plant and Tools ... ... 1950 Sundry Debtors ... 550 Bills Receivable ... 300 Bank 4500 Cash 100 Stores ...... 950 Stock of work on hand S.S. "Kate" ... 930 "Maude" ... 1250 No. 58 Ship ... 2184 59 ... 2733 60 .. 1850 Timber 850 Iron and Steel ... 203 Salaries 100 27,450 27,450 To those who desire to make themselves thoroughly familiar with the design and routine of Costing Accounts, I would recommend a careful study of the extremely in- teresting and able lectures of Mr. Thomas Plumpton, C.A., of 3, Cooper-street, Manchester, who is undoubtedly a great authority on the subject, and who has successfully established his systems with some of the largest steel- 116 producing firms in Sheffield, and Engineering Companies in Manchester. LIFE POLICIES. Though there is keen competition in the purchase and sale of life policies by insurance brokers and others, it is generally a very lucrative business, and has greatly increased in recent years. It is not a sine qua non that a broker should possess capital, but it is hardly necessary to state that adding to its possession a fair amount of enterprise, his chances of financial success are considerably strengthened. The importance of these two factors, especially the former, is promptly realized when valuable ofters are lost by not being able to take up policies before they are known in the market. " Time flies," flJnd as the use of the telegraph plays a very important part in the negotiation of life policies, promptness in replying to letters and telegrams, and in making all necessary enquiries is essential. An insurance broker is often an agent for one or more reversionary companies, who, however, do not favour the appointment of one who already represents other companies, for obvious reasons. He is remunerated in the form of a stipulated rate of commission on the purchase-money on all successful assignments. In the daily routine of his business, the broker endeavours to obtain from the most likely sources, especially banks, solicitors, and private individuals, all the information he can respecting policies which are for sale or on mortgage. As will be imagined there are in this connection many matters which require " delicacy of touch," and in conse- quence tact of the highest quality is important. He also 117 advertises in country newspapers for policies upon lives over 45, the notices in the London papers of reversion and policy sales being noticed by the reversionary companies themselves, and for the saleable interests they negotiate directly with the auctioneers, in fact they receive from the latter advanced copies of their sale lists. Some reversionary companies, however, only treat for unsold lots. The broker's success is mainly attributable to private enquiry and advertising. His modiis operandi may thus be described. Having ascertained that a certain policy is for sale, he obtains the following particulars with regard to it : I. Name and address of vendor. II. Name and address of solicitor for vendor. III. Amount of policy. IV. Name and address of office. V. Number of policy and date when effected. VI. Name, address, and occupation of assured. VII. Is age admitted, i.e., whether the age of the assured is admitted in the policy. VIII. Date of birth and evidence of age of assured. IX. Annual premium and when due. X. Surrender value, i.e., the amount which the in- surance company issuing the policy offers for it. It is of course a common occurrence for a reversionary company not to offer more than the sum that the insurance company itself would give if the policy were surrendered, probably not so much. XI. Amount of bonuses, and how applied, whether in reduction of premiums, added to the original amount of policy, or whether they have been realised by the assurer or vendor. 118 XII. When next bonus will be declared. XIII. Whether any likelihood of assured going abroad, XIV. Sale price. XV. Amount of loan. Having completed his enquiries, he sends the information that he has collected on a proper form to his company, and if they entertain the proposal they will advise the broker of the sum which they are willing to give for the policy, subject to the title being approved by their solicitor. It is invariably stipulated that the completion of all proposals shall take place at the office of the reversion company. Life policies are valued by either the retrospective or prospective methods, the latter chiefly, a certain rate per cent, forming the basis of the calculation. Assuming a policy to have been in existence 15 years ; Present age of assured, 50 ; Premium, 25/- yearly ; Amount of policy, 500 ; Then, from the present value of 500 due at the death of a person, 50 years of age, deduct the present value of 25/- yearly, the sum to be received by the insurance company during the lifetime of the assured, and the difference is the reserve value of the policy. From 10 to 20% is deducted from the amount of this difference to arrive at the surrender value. This is a protection against policies upon good lives being surrendered, and also policies being kept up or retained by indifferent or bad lives, and is termed a " selection against the office." Some reversion companies also require particulars as to the health and habits of life of the assured, whilst others totally ignore these details in their valuation. An insurance company in valuing a policy reduces the 119 gross premium paid by the assured by the percentage added to it for loading, thus arriving at the net or pure premium, which is used in the valuation of the policy contract. The vendor, having accepted the agent's offer, the policy is assigned in the following form, notice being given to the insurance company of the assignment : This Indenture made 24th day of January, 1890, between William Brown (Vendor) of Boston, on the one part, and William Blue (Purchaser) of Slapton, on the other part. Witnesseth that in consideration of 500 paid by the said William Blue to the said William Brown (the receipt where- of the said William Brown hereby acknowledges) the said William Brown as beneficial owner hereby assigns urufco the said W. Blue All that Policy of Insurance by the Mean Insurance Company, dated the 4th day of November, 1870, and numbered 629, whereby 1,000 is assured to be paid to the executors, administrators, or assigns of the said W. Brown, within three months after proof of his death as therein mentioned, and all moneys and benefits to be received by virtue of the same policy, with power to give good receipt for all such moneys. And the said W. Brown covenants with the said W. Blue that the said policy is now valued and in force for the said sum of 1,000, and that all premiums thereon have been paid down to this date, and that the said W. Brown will not do or suffer any act or thing whereby the said policy may be avoided or the premium thereon increased, and will if he shall da any such act indemnify the said W. Blue, his executors, administrators, or assigns from the consequences there- of, and pay such additional premium. Everything having passed off satisfactorily, the vendor receives his cheque and the agent his commission. 120 Sometimes life policies are sold with the option to vendor to redeem within a specified time, generally five years, on his repaying the purchase -money and satisfying the follow- ing conditions, which would be included in the necessary agreement. 1. On the original amount paid by the holders or absolute owners for the policy being repaid to them with- in a certain time, say from three to six years. 2. The total amount of all premiums which have been paid by the holders. 3. Payment of all expenses in connection with the purchase and assignation of the policy, including com- mission. 4. Compound progressive interest upon the original amount paid by the absolute owners, and on all the expenses indicated in the preceding clauses, at a certain rate percent., calculated from the actual dates of payment, with half-yearly rests twice a year, viz., 30th June to 31st December, the first occurring on a specified date, and so on. 5. A bonus of so much per cent, on the total amount of the charges and interests consequent upon all the preceding clauses. Many Reversionary Companies either purchase or make advances upon Life Interests, and these are valued in the same way as life annuities, by averaging the yearly income, and treating the average as fixed ; also Reversionary Life Interests in annuities, the value of which is ascertained by determining the value of the interest during the lifetime of the person who expects to inherit the interest, less the value of the interest as regards the present benefitter so long as he and the expectant live. 121 NOTES UPON RESERVE AND SINKING FUNDS AND SUSPENSE ACCOUNTS. By the term Reserve Fund, or Reserve Account, we usually understand a provision made either for a specified or a general purpose, and taken from surplus or undivided profits after due consideration has been paid to any contingent liabilities ; or it may be defined as the excess of assets over liabilities including the paid-up capital. One of the specific purposes may be a Dividend Reserve Account, or an account, which has for its object the equalization of dividends, as it is undesirable to declare fluctuating dividends at disproportionate rates, whilst the general purpose may be expressed as any financial con- tingency that may arise in a firm's or a company's history. Further a Reserve Fund is a liability with a correspond- ing asset, whilst a Reserve is an asset with no specified corresponding liability, though, of course, it will be included in the capital unless it is specially invested, or a charge against Profit and Loss before arriving at the net profit. A Sinking Fund is one, which is created for the purpose of accumulating stated sums of money in order to liquidate loans or debentures at certain intervals, and these stated amounts are arrived at by actuarial calculation. A Reserve Fund is created out of undivided surplus profits, whilst a Sinking Fund is created out of profits, and this would appear to be the only difference between the two funds. A Suspense or Conversion Account would indicate something of the nature of uncertainty, indefiniteness or in a state of suspense, and it is brought into operation in connection with the treatment of doubtful and disputed 122 transactions, actions sub-judice, items accrued, payments in advance, and other similar matters. A Secret Keserve explains itself, and may be caused by gradually depreciating an asset with a residual value until it entirely disappears from the Balance Sheet, by under valuing assets, or by absolutely denying assets entrance into the Balance Sheet. So much then for general introduction and definitions. Adverting to our first definition it may be interesting to enter into some detail in regard to the creation and working of a Reserve Fund. No evidence is required to prove the desirability of, or the necessity for, the existence of a Reserve Fund. In proper conditions its existence is at once a source of strength, both in prosperity and in times of adverse financial developments or unexpected pressure. Pixley, in his standard work on " Auditing " states that " No Balance Sheet can be considered correct, which shows on one side a Reserve Fund, and on the other fictitious assets such as 'Preliminary Expenses,' 'Deficiency,' etc." That is to say all items of a fictitious nature must disappear from a Balance Sheet, and due provision made for any incidental contingency on each liability and asset therein before a Reserve Fund can be initiated, which must be equationed by a corresponding asset. It may be as well to point out that for whatever purpose it has been raised a Reserve Fund must be applied towards that purpose and no other. It is a debatable question whether a Reserve Fund should be retained in, or invested outside of a business, and each case must be considered on its merits. It may be invariably the safer and more desirable plan of the two to adopt the latter course. 128 A Keserve Fund is initiated by debiting Profit and Loss Account and crediting Reserve Fund, and debiting Invest- ment account, and crediting cash as shown in the follow- ing entries : Profit and Loss 500 To Reserve Fund 500 For amount taken from undivided profits. Investment A/c 500 To Bank 500 For cash invested. Investment A/c 20 To Profit and Loss 20 For interest accrued on investment. Profit and Loss 20 To Reserve Fund 20 For interest accrued and transferred to Reserve Fund. As shown below the ledger entries would be : Dr. Deserve Fund. Cr. By P. &L 500 Ditto 20 Dr. Profit and Loss. Cr. To R. Fund ... 500 By Interest accrued Do. (Interest ac- on investment... 20 crued and trans- ferred to R. Fund). ... 20 Dr. Investment A/c. Cr. To Cash 500 Interest accrued .. 20 Dr. Cash A/c. Cr. By Bank 500 124 When the Fund is realized Cash is Dr. and Investment Cr., and Reserve Fund is Debited and Profit and Loss Credited. It will be observed from the above that a Reserve Fund is merely a sub-division of capital. If, however, there arises no need for the fund for the purpose for which it was created, the surplus profits so appropriated come under the title of income and not capital. With the object of making the meaning of a Reserve Fund quite clear we will assume the following data: Dr. Balance Sheet of "J9." Cr. Capital 500 Cash ... 500 Transactions. s. d. Bought of A, property for 500 Paid for property 500 Bought from A, Goods .. 600 Sold to C, Goods 900 C paid cash for Goods ... 900 Paid A cash 600 Bought Goods from A and paid him cash 700 Sold Goods to C, who paid cash 1000 Depreciated property 166 18 4 Created Reserve Fund by in vesting 160/3/6 per annum /__ _j for 8 years ... 160 3 6 Dr. Capital. Cr. To Balance... 778 8 2 By Cash ... 500 P. &L. ... 278 3 2 778 82 773 8 2 125 Dr. To Cash C Cash Ado. ... 500 ... 900 ...1,000 Bank. 00 By A, Cash for property... 500 Do. for Goods 600 Do. do. 700 Cash for in- vestment.. 160 Cr. 3 6 Balance . . . 489 16 6 To Balance 2,400 2,400 ... 489 16 6 Dr. "A " (Personal A/c). Cr. To Cash Do. ... 500 ... 600 By Property... Goods ... 500 600 Do. Dr. ... 700 Do. ... 700 1,800 1,800 Property A/c. Cr. To A... To Balance ... 500 By Deprec. ... Balance . . . 166 883 13 4 6 8 500 500 ... 338 6 8 Dr. "C " (Personal A/c). Cr. To Goods Do. ... 900 ...1,000 By Cash Do. ... 900 1,000 1,900 1,900 126 .Dr. Goods A/c. Cr. To A 600 ByC. ... 900 Do. ... 700 Do. ... 1,000 Gross profit 600 1,900 1,900 Note. No stock on hand at balancing. Dr. Reserve Fund. Cr. By P. & L. ... 160 8 6 Dr. Investment. Cr. To Cash ... 160 8 6 Dr. Profit and Loss A/c. Cr. To Depreciation 166 18 4 By Gross profit. 600 Nett profit carried down 438 6 8 600 00 600 To Reserve Fund 160 8 6 By nett profit Balance to down ... 488 6 8 Cap. A/c.. 278 8 2 483 6 8 488 6 8 Dr. Balance Sheet. Cr. Capital 778 8 2 Bank ... ...f489 16 6 B. Fund 160 8 6 Property ...500 LessDeprec.166 18 4 888 G 8 Investment.. 160 8 6 988 6 8 988 6 8 Note t Included in 489 16s. 6d. is 166 18s. 4d. 127 taken from profits, though actually remaining in tho business. The accruing interest would be dealt with as shown in the previous illustration (No. 1). If the same transactions were recorded yearly for three years, there would be, at the end of that time, a reserve fund of 500, as well as 500 with which to replace the property, though, in this connection, there is nothing in common between the reserve fund and the depreciation. Sinking Funds. A Sinking Fund is generally created for the purpose of writing down assets and liabilities. Illustration. The Balance- Sheet of A. is as follows : Dr. Cr. Capital 1,000 Cash '1,500 J. B. 500 1,500 1,500 and instead of paying J. B. off at once he proposes to write down this liability of 500 from profits, by yearly instalments of 160 3s. 6d., accumulating at 4 per cent, compound interest. It is supposed that A.'s transactions each year are Bought goods and remitted 600 Sold goods and received cash ... ... 1,000 Bought goods and remitted 400 Sold goods and received cash 800 128 FIBST YEAR. Dr. Capital. Cr. To Balance ...1,68916 6 By Sundries ...1,000 , P. and L... 689 16 6 1,639 16 6 1,639 16 6 By Balance ...1,639 16 6 Dr. Bank. Cr. To Sundries... 1,500 By Cash (Goods) 1,000 (Goods) Cash 1,800 ,, Investment 160 3 6 Balance 2,139 16 6 3,300 3,300 To Balance ... 2,189 16 6 Dr. J. B. Cr. By Sundries 500 Dr. Goods. Cr. To A 600 ByB. ...1,000 A 400 B. ... 800 ,, Balance (from Profit) ... 800 1,800 1,800 Dr. Sinking Fund. Cr. By P. and L. 160 8 6 Dr. Investment. Cr. To Cash 160 8 6 129 Dr. Profit and Loss A/c. Cr. To S. Fund ... 160 3 6 By Gross Profit 800 ,, Transfer to Cap. a/c. ... 639 16 6 800 800 Dr. Balance Sheet at end of first year. Cr. Capital 1,68916 6 Cash 2,18916 6 J. B 500 Investment... 160 8 6 S. Fund 160 8 6 2,300 2,300 Note. A. and B.'s a/cs. are omitted because they do not affect the balance in any way. SECOND YEAR. Dr. Capital. Cr. To Balance ...2,279 13 By Sundries 1,639 16 6 , P. and L. 639 16 6 2,279 13 2,279 13 By Balance... 2,279 18 Dr. /. B. Cr. By Sundries 500 Dr. Sinking Fund. Cr. By Sundries 160 8 6 ,, P. and L. (Interest accrued) 682 Cash ... 160 8 6 180 Dr. Cash. Cr. To Sundries ...2,13916 6 By A. ...1,000 Balance ...1,800 Investment 160 8 6 Balance ...2,779 18 3,939 16 6 3,939 16 6 To Balance ...2,779 18 Dr. Investment. Cr. To Sundries ... 160 3 6 ,, Int, accrued (P. and L.) 682 Cash ... 160 8 6 (Goods accounts same as previously). Dr. Profit and Loss a/c. Cr. To S. Fund ... 160 3 6 By Gross Profit 800 Int. accrued ,, Int. accrued transferred on invest- to S. Fund 682 ment ... 682 ,, Balance to Cap. a/c. ... 689 16 6 806 8 2 806 8 2 Dr. Balance Sheet at the end of the Second Year. Cr. Capital 2,27918 Cash ...2,77918 J. B 500 Investment... 82615 2 Sinking Fund ... 826 15 2 8,106 H 2 8,106 8 2 181 Dr. To Balance THIRD YEAR. Capital. Or. ..2,919 9 6 By Balance... 2,279 18 P. and L. 689 16 6 Dr. Dr. To Balance ,, Int, accrued. Cash Dr. To Balance , B. Dr. Dr. To S. Fund ... Int. accrued transferred to S. Fund Balance to Capital A/c 2,919 9 6 2,919 9 6 By Balance.. .2,919 9 6 Sinking Fund. Cr. By Balance... 826 15 2 Int. accrued 13 1 4 P. andL.... 160 3 6 Investment. Cr. . 326 15 2 . 18 1 4 , 160 8 6 Cash. Cr. .2,779 13 By A. ...1,000 ,1,800 00,, Investment 160 8 6 Balance ...3,419 9 6 4,579 13 4,579 13 J.B. Cr. By Balance... 500 Profit and Loss. Cr. 160 3 6 By Gross profits. 800 Int. accrued on invest- 13 1 4 ment ... 13 1 \ 639 16 6 813 1 4 813 1 4 182 Dr. Balance Sheet at end of Third Tear. Cr. To Capital ...2919 9 6 By Cash ...8419 9 6 J. B. ... 500 Investment 500 S. Fund . 500 3,919 9 6 3,919 9 6 A does not realize the investment until the beginning of the fourth year, and with the same transactions as before for that year and paying off J. B., we have : Dr. Capital Cr. By Sundries .. 2919 9 6 P. &L ... 1300 Dr. J. B. Cr. To Cash ... 500 By Sundries ... 500 Dr. Sinking Fund. Cr. To P. & L. ... 500 By Sundries ... 500 Dr. Cash. Cr. To Sundries ...8419 9 6 ByJ. B. 500 Investment, realization of 500 00 A 1000 B 1800 Dr. Investment. Cr. To Sundries ... 500 By Cash 500 Dr. Profit and Loss. Cr. To Balance to By Investment Cap. A/C....1800 (realization of) 500 Gross Profit... 800 1,800 1,800 188 Dr. Balance Sheet at end of Fourth Year. Cr. To Capital ...4219 9 G By Cash ...4219 9 6 We now come to Suspense Accounts ; the necessity for and utility of which will be perhaps made clear by simple illustrations. A correct Profit and Loss Account, besides indicating revenue items of actual receipt and payment, should also indicate items accrued either in the nature of receipt or payment, and whether paid or not for the period under review. It is in this respect that a Profit and Loss Account or a Revenue Account differs from an ordinary statement of Income and Expenditure, which should only contain items which have been actually paid and received. A, who is balancing at the end of the year, finds that on the 81st March he paid for a year's rent, viz. 60, which is not due again until the 31st March of the subsequent year. In this case the sum properly charged for the year is 45, and the advance or excess is 15. The entries for the first year would be : March 31st. Profit and Loss 60 To Bank 60 For rent paid. Dec. 81st. Suspense A/c 15 To Profit and Loss 15 For proper proportion of rent carried forward to subsequent year. Ledger. Dr. Bank. Cr. By Rent ... 60 134 Dr. Profit and Loss. Cr. To Rent 00 By Rent 15 Dr. Suspense A/c. Cr. To P. &L. ... 15 Dr. Balance Sheet. Cr. Bank .. 60 P. &L. 45 Suspense A/c ... 15 60 60 The entries for the second year would be : Dr. Profit and Loss. Cr. To Rent 60 By Rent 15 Dr. Bank. Cr. By Rent 60 Dr. Suspense A/c. Cr. To Balance ... 15 By P. & L. for P. &L. ... 15 previous year 15 Dr. Balance Sheet. Cr. Bank 60 P. & L. 45 Suspense A/c .. 15 60 60 This, of course, is on the assumption that 15 is again carried forward to the next year. A has received a demand note for certain rents, amount- 185 ing to 50, for the year 1874, and which at the end of the year are unpaid. The entry would be: Dec. 81st. P. & L. 50 To Suspense A/c 50 For Rent accrued and unpaid. A's workmen were paid their wages on the 27th Decem- ber, and at the end of the year there are 50 accrued and not payable until the following year. The entries would be : 1874. Dec. 27th. P. & L. 150 To Wages' A/c 150 Say for wages due and paid on Dec. 27th. Dec. 81st. P. & L. 50 To Suspense A/c 50 1875. Jan. 3rd. To Suspense A/c 50 To Cash 50 A has incurred expenses in litigation amounting to 50, and the issue of the case at the end of the year is uncertain. The entries would be : P. &L 50 To Suspense A/c 50 (if not paid). Suspense A/c ... 50 To Cash 50 (when paid) . The treatment of Bad Debts is exemplified below, viz.: Dr. A. Cr. To Goods ... 500 By Bad Debts 500 186 Dr. Bad Debts A/c. Cr. To A 500 By P. & L. ... 500 Dr. Profit and Loss. Cr. To Bad Debts 500 Supposing for the sake of brevity that the recovery of any portion of the 500 is very uncertain or doubtful, then : Dr. Profit and Loss. Cr. To Doubtful Debts 500 Dr. Doubtful Debts. Cr. By P. &L. ... 500 If this is eventually proved to be the case, then : Dr. Doubtful Debts. Cr. To Bad Debt... 500 And credit Personal Account. Should the account be paid, credit and debit Personal and Cash A/cs respectively, and credit Profit and Loss A/c and debit Doubtful Debts A/c. The estimated amount of doubtful debts should be shown In the Balance-sheet as deducted from the Asset. MISCELLANEA. Property. There are three classes of property, viz. : Freehold, Leasehold, and Copyhold. 1 )y Freehold property we understand property held free, or for which no rent is paid, and Leasehold is property held or leased for a certain number of years at an agreed rent, whilst Copyhold is property belonging to the lord of 187 the manor, and held by a tenant for which he pays certain rents. Valuation of a Leasehold Howe. A wishes to purchase a leasehold house of a yearly tenancy and rental of 150, with a ground rent of H) per annum, and obtain 4% upon the investment. What should he offer for the property ? The lease is for 99 years, 39 of which have expired. The first operation is to ascertain the charges which the purchaser will be required to pay annually, including the ground rent, which in this case is 10, and deduct the total of these from the gross rental when we will have the net rental, e.g. : By Annual rental 150 To Ground Rent (describe each charge) say .. 30 By Nett Annual Rental 120 In this 30 provision will have been made for bad tenancies, difficulty in letting the house, or any other contingencies that are likely to arise, so that the pure annual value, or rack rental, of the house is 120. The second operation is to calculate the present value of this pure annual value for 60 years at 4%, as the would-be purchaser wishes to make 4% on the investment ; this we find to be 2714 16s. 5d. From this figure subtract any professional charges that may have been incurred, and the result is the sum that A might suitably offer for the property. A farmer has had a field of wheat damaged. Frame an imaginary valuation for compensation purposes. 188 Form . Field of wheat at Ancosta Bridge, near Grantham, viewed Friday, September 1st, 1894. 20 10 60 20 100 Yds. X X X X X 10 = 5 = 20 = 5 = 40 = Total damage. 200 whole 50 half 1200 two thirds 100 one third whole 1550 Yds. = 200 = 25 = 800 = 83 = 4000 5058 =10 Say l acres, to include any omissions. Yield, say 45 bushels (at the most) per acre 3/- = 45 =880 11 56 Straw, 80/- an acre 1 17 6 10 5 6 Adverting to the first illustration, supposing that it had been the freehold of a house that A wished to purchase, and that the charges were practically the same, with the exception that he asked for a return of 5%, we have Gross Annual Rental 150 Yearly Charges 80 120 and 120/0/0 X 20 (no. of years' purchase at 5%) = 2400, which is subject, of course, to professional and any other 139 incidental charges that may require to be incurred, as in the case of Leasehold Property. Course of Hxchanye. A Table of the Course of Exchange between London and other cities in the commercial world is published twice weekly, and as it often appears unintelligible to juniors, a little explanation will no doubt be of interest. It is divided into four columns, thus : Course of Exchange. Tuesday, Nov. 9. Paris | 3ms. | 25.45 | 25.50 The first column gives the name of the remitting town or city; the second, the usance or currency; the third, the price at which bills may be bought; and the fourth, the price at which bills may be sold, the prices in the two last columns being expressed in the currency of the countries in which the towns or cities are when the 1 is fixed. Where, however, this is not the law, the amount in English money is stated. 140 1 S .a a 2 .2 05 j= o rH iO S 113 S.II s o g :Q CM rH - 00 00 rH _, O5 00 00 GO Oq -^ ^1 -H/l rH rH rH O H'4#t>OrHCO)O W> .J. CMCO'* cM^cococqcococ?q xo *o os cococo r^rHoqcMoqoqcMrHoqcMco co q ^ ! ^ rH TH rH EH '% 3 si V |i 00 S o n g'B 'J 1 a -S^^M ^^^ & sS and *l I .12 : lai/able hi/ A to B. \Vlien the price of Iron is certified by The Dnrnmouth Ironstone Mine Owners, or their Accountants. 148 To be But not to be The wayleave rent per ton shall be 25/- .25 minimum rent. 25/- 26/- .80 26/- 27/- .35 27/- 28/- .40 28/- 29/- .45 29/- 80/- .50 80/- 31/- .55 81/- 82/- .60 And so on, increasing by point .5 for every additional I/-, the maximum price being 55/-. MISCELLANEOUS TABLES. Formula for " Advance per share " column 1 - (1 + c) - x c c represents the interest upon 1. (1 + c) - x represents the present value of (1 + c) for x years. Applied to the two-hundredth month we have : = 1 + -005, and the amount of 1-005 for two hundred months is 2-7114979, the present value of which is (2.7114979) = ' 368 799, which deducted from ,f>qi OA-J unity leaves -631201, and ^^ = 126-24 1264s.9d. At 10/- per month the advance will be one-half of 126 4s. 9d. 5 viz., 63 2s. 3d. 144 BUILDING SOCIETY DEPOSIT AND MORTGAGE TABLE. Deposit Shares. Deposit 10/- per month. The amount due upon with- drawal of one share is that shown in column B of the table. The rate of interest is 5% per annum. To find the amount of withdrawal for more than one share multiply the sum for one share by the total number of shares held. Advanced Shares or Loans. The rate of interest charged is 6% per annum. 145 Months. Amount paid. K. Amount due on withdrawal. B. Advance per share. M. Months. 1 10 10 63 2 5 200 2 1 1 62 18 9 199 8 1 10 1 10 2 62 15 198 4 2 2 4 62 11 3 197 5 2 10 2 10 6 62 7 6 196 6 3 3 9 62 4 9 195 7 3 10 8 11 62 194 8 4 4 1 4 61 16 2 193 9 4 10 4 11 8 61 12 5 192 10 5 5 2 1 61 8 6 191 11 5 10 5 12 6 61 4 8 190 12 6 6 3 61 10 189 13 6 10 6 13 6 60 17 188 14 7 7 4 1 60 13 187 15 7 10 7 14 8 60 9 186 16 8 8 5 4 60 5 1 185 17 8 10 8 16 60 1 2 184 18 9 9 6 9 59 17 1 183 19 9 10 9 17 6 59 13 2 182 20 10 01 10 8 4 59 9 2 181 21 10 10 10 19 2 59 5 2 180 22 11 11 10 1 59 11 179 23 11 10 12 1 1 58 16 10 178 24 12 12 12 1 58 12 9 177 25 12 10 13 3 2 58 8 7 176 26 13 18 14 3 58 4 5 175 27 13 10 o 14 5 5 58 3 174 28 14 14 16 7 57 16 1 173 29 14 10 15 7 10 57 11 10 172 30 15 15 19 1 57 7 7 171 31 15 10 16 10 5 57 3 4 170 82 16 17 1 10 56 19 1 169 33 16 10 17 13 3 56 14 9 168 84 17 18 4 9 56 10 5 167 85 17 10 18 16 3 56 6 1 166 146 Months, Amount paid. K. Amount due on withdrawal. B. Advance per share. M. Months. 36 18 19 7 10 56 1 9 165 87 18 10 19 19 5 55 17 4 164 88 19 20 11 1 55 12 11 163 89 19 10 21 2 10 55 8 6 162 40 20 21 14 7 55 8 7 161 41 20 10 22 6 5 54 19 6 160 42 21 22 18 8 54 15 159 43 21 10 23 10 2 54 10 6 158 44 22 24 2 2 54 6 157 45 22 10 24 14 2 54 1 5 156 46 23 25 6 3 53 16 10 155 47 23 10 25 18 4 53 12 2 154 48 24 26 10 6 53 7 7 158 49 24 10 27 2 9 53 2 11 152 50 25 27 15 52 18 3 151 51 25 10 28 7 4 52 13 6 150 52 26 28 19 8 52 8 9 149 58 26 10 29 12 1 52 4 148 54 27 30 4 7 51 19 3 147 55 27 10 30 17 1 51 14 5 146 56 28 81 9 8 51 9 7 145 57 28 10 32 3 8 51 4 9 144 58 29 32 14 11 50 19 11 143 59 29 10 38 7 8 50 15 142 60 30 34 5 50 10 141 61 30 10 84 13 8 50 6 1 140 62 81 85 6 2 50 8 189 68 81 10 85 19 1 49 15 1 188 64 32 86 12 1 49 10 1 187 65 82 10 H7 1 5 2 49 5 I 186 66 88 37 18 8 49 n i) 185 67 88 10 88 11 5 48 1 l K) i:-u 68 84 89 I 8 48 8 9 183 69 84 10 89 17 11 ' 48 4 7 182 70 85 40 11 8 47 19 4 131 147 Months. Amount paid. Amount due on withdrawal. Advance per share. Month*. . K. M. 71 35 10 41 4 8 47 14 2 180 72 36 41 18 1 47 9 129 73 36 10 42 11 7 47 3 9 128 74 37 43 5 2 46 18 5 127 75 37 10 48 18 9 46 13 2 126 76 38 44 12 5 46 7 10 125 77 38 10 45 6 2 46 2 5 124 78 39 45 19 11 45 17 123 79 39 10 46 13 9 45 10 7 122 80 40 47 7 8 45 6 2 121 81 40 10 48 1 7 45 9 120 82 41 48 15 7 44 15 3 119 83 41 10 49 9 8 44 9 9 118 84 42 50 3 9 44 4 2 117 85 42 10 50 17 11 43 18 7 116 86 43 51 12 2 43 13 115 87 43 10 52 6 6 43 7 4 114 88 44 53 10 43 1 8 113 89 44 10 53 15 3 42 16 112 90 45 54 9 9 42 10 3 111 91 45 10 55 4 8 42 4 6 110 92 46 55 18 10 41 18 9 109 93 46 10 56 13 6 41 12 11 108 94 47 57 8 3 41 7 1 107 95 47 10 58 3 41 1 3 106 96 48 o 58 17 10 40 15 4 105 97 48 10 59 12 9 40 9 5 104 98 49 60 7 9 40 3 5 103 99 49 10 61 2 9 39 17 6 102 100 50 61 17 10 39 11 6 101 1 50 10 62 13 39 5 5 100 2 51 63 8 3 38 19 4 99 3 51 10 64 3 6 38 13 8 98 4 52 64 18 10 88 7 1 97 5 52 10 65 14 3 38 11 96 148 Months. Amount paid. K. Amount due on withdrawal. B. Advance per share. M. Months. 106 53 66 9 9 37 14 9 95 7 58 10 67 5 8 87 8 6 94 8 54 68 10 87 2 3 93 9 54 10 68 16 6 36 16 92 110 55 69 12 3 36 9 8 91 1 55 10 70 8 1 36 3 4 90 2 56 71 3 11 35 17 89 B 56 10 71 19 10 35 10 7 88 4 57 72 15 10 35 4 1 87 5 57 10 78 11 11 34 17 8 86 6 58 74 8 1 34 11 1 85 7 58 10 75 4 4 84 4 6 84 8 59 76 7 88 17 11 88 9 59 10 76 16 11 33 11 4 82 120 60 77 13 4 83 4 . 8 81 1 60 10 78 9 10 32 18 80 2 61 79 6 4 32 11 4 79 8 61 10 80 2 11 32 4 7 78 4 62 80 19 7 81 17 10 77 5 62 10 81 16 4 81 11 76 6 68 82 18 2 81 4 3 75 7 68 10 83 10 1 80 17 8 74 8 64 84 7 1 80 10 4 78 9 64 10 86 7 1 80 8 5 72 180 65 86 7 2 29 16 5 71 1 65 10 87 7 4 29 9 5 70 2 66 88 4 7 29 2 4 69 8 66 10 89 2 28 15 8 68 4 67 89 19 5 28 8 2 67 5 67 10 90 16 11 28 1 66 6 68 91 14 6 27 18 9 65 7 68 10 92 12 4 27 6 6 64 8 69 98 10 1 26 19 8 68 9 69 10 94 7 11 26 12 62 140 70 95 5 9 26 4 8 61 i 149 Months. Amount paid. K. Amount due on withdrawal. B. Advance per share. M. Months. 141 70 10 96 3 8 25 17 4 60 2 71 97 1 8 25 9 10 59 3 71 10 97 19 9 25 2 5 58 4 72 98 18 24 14 11 57 5 72 10 99 16 3 24 7 4 56 6 73 100 14 7 23 19 10 55 7 73 10 101 13 23 12 2 54 8 74 102 11 6 23 7 8 53 9 74 10 103 10 1 22 16 11 52 150 75 104 8 9 22 9 2 51 1 75 10 105 7 5 22 1 5 50 2 76 106 6 2 21 13 8 49 3 76 10 107 5 21 5 9 48 4 77 108 4 20 17 11 47 5 77 10 109 3 10 20 10 46 6 78 110 2 11 20 2 1 45 7 78 10 111 2 1 19 14 1 44 8 79 112 1 4 19 6 1 43 9 79 10 113 8 18 18 42 160 80 114 1 18 9 10 41 1 80 10 n2 19 7 18 1 9 40 2 81 115 19 2 17 13 4 39 3 81 10 116 18 10 17 5 3 38 4 82 117 18 7 16 17 87 5 82 10 118 18 5 16 8 9 36 6 83 119 18 4 16 4 35 7 83 10 120 18 4 15 11 11 34 8 84 121 18 5 15 3 6 83 9 84 10 122 18 7 14 15 32 170 85 123 18 10 14 6 6 31 1 85 ! 10 124 19 2 13 17 11 30 2 86 125 19 7 13 9 4 29 3 86 10 126 1 18 8 28 4 87 127 7 12 12 27 5 87 10 128 1 2 12 3 3 26 150 Months. Amount paid. K. Amount due on withdrawal. B. Advance per share. M. Months. 176 88 129 1 10 11 14 5 25 7 88 10 130 2 7 11 5 7 24 8 89 131 3 5 10 16 9 28 9 89 10 132 4 4 10 7 10 22 180 90 133 5 4 9 8 10 21 1 90 10 184 6 5 9 9 10 20 2 91 185 7 7 9 10 19 3 91 10 186 8 10 8 11 9 18 4 92 137 10 2 8 2 6 17 5 92 10 138 11 8 7 13 5 16 6 93 139 18 3 7 4 2 15 7 93 10 140 14 10 6 14 11 14 8 94 141 16 7 6 5 7 13 9 94 10 142 18 5 5 16 2 12 190 95 144 4 5 6 9 11 1 95 10 145 2 4 4 17 3 10 2 96 146 4 5 4 7 9 9 3 96 10 147 6 7 8 18 8 8 4 97 148 8 10 8 8 7 7 5 97 10 149 11 2 2 19 6 6 98 150 18 8 2 9 8 5 7 98 10 151 16 8 1 19 6 4 8 99 152 18 11 1 9 8 8 9 99 10 154 1 8 19 10 2 200 100 155 4 6 10 1 RAIL CALCULATING TABLES. So many yards at so many pounds per yard. 1 LB. PER YARD. No. Weight. T. C. Q. LB. 28 29 1 30 2 31 5 32 4 33 5 34 6 35 7 36 1 8 37 1 9 38 1 10 39 1 11 40 1 12 100 3 16 200 1 3 4 300 2 2 20 400 3 2 8 500 4 1 24 1000 8 3 20 25 LBS. PER YARD. No. Weight. T. C. Q. LB. 1 25 2 1 22 3 2 19 4 3 16 5 1 13 6 1 1 10 7 1 2 7 8 1 3 4 9 2 1 10 2 26 11 2 1 23 12 2 2 20 13 2 3 17 14 3 14 15 3 1 11 16 3 2 8 17 3 3 5 18 4 2 19 4 27 20 4 1 24 21 4 2 21 22 4 3 18 23 5 15 24 5 1 12 25 5 2 9 26 5 3 6 27 6 3 28 6 1 152 70 LBS. No. Weight. T. C. Q. LB. No. Weight. 1 T. C. Q. LB. No. Weight. T. C. Q. LB. 1 2 14 35 1 3 14 69 2 3 14 2 1 1 6 2 2 70 2 3 3 3 1 3 14 7 3 14 1 2 4 1 14 4 2 2 8 3 3 2 2 5 5 3 14 9 4 1 14 3 2 5 2 14 6 3 3 40 1 5 4 2 6 1 7 4 1 14 1 1 5 2 14 5 2 6 3 14 8 5 2 1 6 1 6 2 7 2 9 5 2 14 3 1 6 3 14 7 2 8 14 10 6 1 4 1 7 2 8 2 8 3 1 6 3 14 5 1 8 14 9 2 9 1 14 2 7 2 6 1 8 3 80 2 10 3 8 14 7 1 9 1 14 1 2 10 2 14 4 8 3 8 1 10 2 2 11 1 5 9 1 14 g 1 10 2 14 3 2 11 3 14 6 10 50 1 11 1 4 2 12 2 7 10 2 14 1 1 11 3 14 5 2 13 14 8 11 1 2 1 12 2 6 2 13 3 9 11 3 14 3 1 13 14 7 2 14 1 14 20 12 2 4 1 13 3 8 2 15 1 13 14 5 1 14 1 14 9 2 15 2 14 2 13 3 6 1 15 90 2 16 1 3 14 1 14 7 1 15 2 14 1 2 16 3 14 4 15 8 1 16 1 2 2 17 2 5 15 2 14 9 1 16 3 14 3 2 18 14 6 16 1 60 1 17 2 4 2 18 3 7 16 3 14 1 1 18 14 5 2 19 1 14 8 17 2 2 1 18 3 6 3 9 18 14 V 1 19 1 14 7 3 2 14 30 18 3 4 2 8 3 1 1 1 19 1 14 5 2 2 14 9 3 1 3 14 2 1 6 2 1 1 100 3 2 2 3 1 2 14 7 2 1 8 14 4 1 1 1 i B 2 2 2 158 82 LBS. No Weight. No. Weight. No. Weight. T. C. Q. LB. T. C. Q. LB. T. C. Q. LB. 1 2 26 41 1 10 2 81 3 19 2 1 1 24 2 1 10 3 2 3 3 2 22 3 1 11 1 26 3 3 3 4 2 3 20 4 1 12 24 4 3 1 2 2 5 3 2 18 5 12 3 22 5 3 2 26 6 4 1 16 6 13 2 20 6 3 2 3 24 7 5 14 7 14 1 18 7 3 3 2 22 8 5 3 12 8 15 16 8 3 4 1 20 9 6 2 10 9 15 3 14 9 3 5 18 10 7 1 8 50 16 2 12 90 3 5 3 16 1 8 6 1 17 1 10 1 3 6 2 14 2 8 3 4 2 18 8 2 3 7 1 12 8- 9 2 2 3 18 3 6 3 3 8 10 4 10 1 4 1 19 2 4 4 3 8 3 8 5 10 3 26 5 2 1 2 5 3 9 2 6 6 11 2 24 6 2 1 6 3 10 1 4 7 12 1 22 7 2 1 2 26 7 3 11 2 8 13 20 8 2 2 1 24 8 3 11 3 9 13 3 18 9 2 3 22 9 3 12 1 26 20 14 2 16 60 2 3 3 20 100 3 13 24 1 15 1 14 1 2 4 2 18 200 7 6 1 20 2 16 12 2 2 5 1 16 300 10 19 2 16 3 16 3 10 3 2 6 14 400 14 12 3 12 4 17 2 8 4 2 6 3 12 500 18 6 8 5 18 1 6 5 2 7 2 10 600 21 19 1 4 6 19 4 6 2 8 1 8 700 25 12 2 7 19 3 2 7 2 9 6 800 29 5 2 24 8 1 2 8 2 9 3 4 900 32 18 3 20 9 1 1 26 9 2 10 2 2 1000 36 12 16 30 1 1 3 24 70 2 11 1 1500 54 18 24 1 1 2 2 22 1 2 11 3 26 2000 73 4 1 4 2 1 3 1 20 2 2 12 2 24 3000 109 16 1 20 3 1 4 18 3 2 13 1 22 4000 146 8 2 8 4 1 4 3 16 4 2 14 20 5000 183 2 24 5 1 5 2 14 5 2 14 3 18 6000 219 12 3 12 6 1 6 1 12 6 2 15 2 16 7000 256 5 7 1 7 10 7 2 16 1 19 8000 292 17 16 8 1 7 3 8 8 2 17 12 9000 329 9 1 4 9 1 8 2 6 9 2 17 3 10 10000 366 ] 1 20 40 1 9 1 4 80 2 18 2 154 90 LBS. No. Weight. T. C. Q. LB. No. Weight. T. C. Q. LB. No. Weight. T. C. Q. LB. 1 3 6 41 1 12 3 22 81 3 5 10 2 1 2 12 2 1 13 3 2 3 5 3 16 3 2 1 18 3 1 14 2 6 3 3 6 2 22 4 3 24 4 1 15 1 12 4 3 7 2 5 - 4 2 5 1 16 18 5 3 8 1 6 6 4 3 8 6 1 16 3 24 6 3 9 12 7 5 2 14 7 1 17 3 2 7 3 9 3 18 8 6 1 20 8 1 18 2 8 8 3 10 2 24 9 7 26 9 1 19 1 14 9 3 11 2 2 10 8 4 50 2 20 90 3 12 1 8 1 8 3 10 1 2 3 26 1 3 13 U 2 9 2 16 2 2 1 3 4 2 3 13 3 20 3 10 1 22 3 2 2 2 10 3 3 14 2 26 4 11 1 4 2 3 1 16 4 3 15 2 4 5 12 6 5 2 4 22 5 3 16 1 10 6 12 3 12 6 2 5 6 3 17 16 7 13 2 18 7 2 5 3 6 7 3 17 3 22 8 14 1 24 8 2 6 2 12 8 3 18 3 9 15 1 2 9 2 7 1 18 9 3 19 2 6 20 16 8 60 2 8 24 100 4 1 12 1 16 3 14 1 2 9 2 200 8 2 24 2 17 2 20 2 2 9 3 8 300 12 1 8 3 18 1 26 3 2 10 2 14 400 16 1 1 20 4 19 1 4 4 2 11 1 20 500 20 1 3 4 5 1 10 5 2 12 26 600 24 2 16 6 1 3 16 6 2 13 4 700 28 a 2 7 1 1 2 22 7 2 13 3 10 800 32 2 3 12 8 1 2 2 8 2 14 2 16 900 36 3 24 9 1 3 1 6 9 2 15 1 22 1000 40 3 2 8 30 1 4 12 70 2 16 1 2000 80 7 16 1 1 4 3 18 1 2 17 6 3000 120 10 2 24 2 1 5 2 24 2 2 17 3 12 4000 160 14 1 4 3 1 6 2 2 3 2 18 2 18 5000 200 17 3 12 4 1 7 1 8 4 2 19 1 24 6000 241 1 1 20 5 1 8 14 5 3 1 2 7000 281 5 6 1 8 3 20 6 3 1 8 8000 891 8 2 8 7 1 9 2 26 7 3 1 3 11 9000 361 12 16 8 1 10 2 4 8 3 2 2 20 10000 401 15 2 24 9 1 11 1 10 9 3 3 1 26 40 1 12 16 80 3 4 1 4 155 100 LBS. PER YARD. No. Weight. T. C. Q. LB. No. Weight. T. C. Q. LB. No. Weight. T. C. Q. LB. 1 3 16 6 1 12 16 71 3 3 1 16 2 1 3 4 7 1 13 4 72 3 4 1 4 3 2 2 20 8 1 13 3 20 73 3 5 20 4 3 2 8 9 1 14 3 8 74 3 6 8 5 4 1 24 40 1 15 2 24 75 3 6 3 24 6 5 1 12 1 1 16 2 12 76 3 7 3 12 7 6 1 2 1 17 2 77 3 8 3 8 7 16 3 1 18 1 16 78 3 9 2 16 9 8 4 4 1 19 1 4 79 3 10 2 4 10 8 3 20 5 2 20 80 3 11 1 20 1 9 3 8 6 2 1 84 81 3 12 1 8 2 10 2 24 7 2 1 3 24 82 3 13 24 3 11 2 12 8 2 2 3 12 83 3 14 12 4 12 2 9 2 3 3 84 3 15 5 13 i 16 50 2 4 2 16 85 3 15 3 16 6 14 1 4 1 2 5 2 4 86 3 16 3 4 7 15 20 2 2 6 20 87 3 17 2 20 8 16 8 3 2 7 1 8 88 3 18 2 8 9 16 3 24 4 2 8 24 89 3 19 1 24 20 17 3 12 5 2 9 4 12 90 4 1 12 1 18 3 6 2 10 91 4 1 1 2 19 2 16 7 2 10 3 16 92 4 2 16 3 1 2 4 8 2 11 3 4 93 4 3 4 4 1 1 1 20 9 2 12 2 20 94 4 3 3 20 5 2 1 8 60 2 13 2 8 95 4 4 3 8 6 3 24 1 2 14 1 24 96 4 5 2 24 7 4 12 2 2 15 1 12 97 4 6 2 12 8 5 3 2 16 1 98 4 7 2 9 5 3 16 4 2 17 ! 16 99 4 8 1 16 30 1 6 3 4 5 2 18 24 100 4 9 1 4 1 1 7 2 20 6 2 18 3 200 8 18 2 8 2 1 8 2 8 7 2 19 3 28 300 13 7 3 12 3 1 9 1 24 8 9 2 14 400 17 17 16 4 1 10 1 12 9 3 1 2 2 500 22 6 1 20 5 1 11 1 70 3 2 2 1000 44 12 3 12 INTEREST, DIVIDEND, OR YIELD, ON INVESTMENT. TABLE. Example. 100 stock at 1% bought for 10 equals 10 ( 100 stock at 1% bought for 105 equals 19/- Note. The lower the purchasing price the higher the yield, and vice versa. Price of 100 Stock. Interest, dividend, or yield on Investments. 1 p.c. 2 p.c. 2} p.c. 3 p.c. 4 p.c. 5 p.c. 10 10 20 25 30 40 50 11 9 1 10 18 3 8 22 14 7 27 5 6 36 7 4 45 9 4 12 868 16 13 4 20 16 8 25 33 6 8 41 13 4 13 7 13 10 15 7 8 19 4 7 23 1 6 30 15 4 38 9 2 14 7 2 10 14 5 8 18 7 1 21 8 6 28 11 4 35 14 2 15 6 13 4 13 6 8 i 16 13 4 20 26 13 4 33 6 8 16 650 12 10 15 12 6 18 15 25 31 5 17 5 17 8 11 15 4 14 14 2 17 13 23 10 8 29 8 4 18 5 11 1 11 2 2 13 17 8 16 13 3 22 4 4 27 15 5 19 553 10 10 6 13 3 1 15 15 9 21 1 26 6 3 20 500 10 12 10 15 20 25 21 4 15 3 9 10 6 11 18 1 14 5 9 19 1 23 16 3 22 4 10 11 9 1 10 11 7 3 13 12 9 18 3 8 22 14 7 23 4 6 11 8 13 10 10 17 3 13 9 17 7 8 21 14 7 24 434 868 10 8 4 12 10 16 13 4 20 16 8 25 400 800 10 12 16 20 26 3 16 11 7 13 10 9 12 3 11 10 9 15 7 8 19 4 7 27 3 14 1 782 952 11 2 3 14 16 4 18 10 5 28 3 11 5 7 2 10 8 18 6 10 14 3 14 5 8 17 17 1 29 390 6 18 8 17 6 10 7 13 16 17 5 30 368 6 13 4 868 10 13 6 8 16 13 4 31 346 690 813 9 13 6 12 18 16 2 6 32 326 650 7 16 3 976 12 10 15 12 6 33 307 612 7 11 5 919 12 2 4 15 2 11 34 2 18 10 5 17 8 7 7 1 8 16 6 11 15 4 14 14 2 35 2 17 1 5 14 2 728 8 11 3 11 8 4 14 4 5 36 2 15 6 5 11 6 18 9 866 11 2 13 17 6 37 2 14 580 6 15 820 10 16 13 10 38 2 12 8 556 6 11 10 7 18 10 10 8 13 3 4 39 2 11 3 526 6 8 1 7 13 9 10 5 12 16 3 40 2 10 500 650 7 10 10 12 10 41 289 4 17 6 6 1 10 7 6 3 | 9 15 12 3 9 12 279 I 15 6 5 19 4 7 3 3 9 11 11 18 9 43 266 1 13 5 16 3 6 19 c 9 r, o 11 12 6 44 255 4 10 K 5 13 6 6 16 3 9 1 8 11 7 1 45 -' 4 5 4 * In 5 11 i, .i ia 8 17 8 11 2 1 46 236 4Ti) 589 6 10 r, - 14 10 17 (5 47 J 2 6 4 r, 563 676 8 10 10 12 r, > ] * 4 542 ; :, o > r, s 10 8 4 I'.' 2 10 4 1 8 5 2 1 626 834 10 3 4 :,o 200 4 o 500 600 800 10 157 GRAIN. The conversion of Barley sold at 400Ibs. to the quarter into 448lbs. per quarter. 448 400 400 148 5 5| 40 o 4 40 10 111 30 10 8J 2 * 15 16 20 15 13f 8 20 22f 10 20 17| 48 25 28 25 22f 32 30 33| 40 30 26| le 35 39i 30 35 31 g 40 44| 20 40 35 40 45 50| 10 45 40| 24 50 56 50 44| 8 55 61|*o 55 49f 48 60 67 1 30 60 53f 65 72| 20 65 58f 16 70 78f 10 70 62| 75 84 75 66i * 80 89| 40 80 71| a4 85 95| 30 85 75| 8 90 lOOf 20 90 80| 48 95 1061 10 95 84f 32 100 m' 100 89 16 158 MARINE INSURANCE TABLE. Rate, 7/6% B = Brokerage, 5% C = Discount, 10% D = Policy Duty, 3d.% 11 Add. ll Amount. LessB. Amount. Less C. Amount. B. D. Amount. 25 1 10J 1 1 9* 2 1 74 1 a 1 94 50 3 9 24 3 6| 44 3 24 24 l| 3 6J 75 5 7\ 34 5 34 64 4 9 34 2* 5 2* 100 7 6 4* 7 1* 6 5 44 3 7 o* 200 15 9 14 3 1 5 12 10 9 6 14 1 300 1 2 6 1 li 1 1 41 2 li 19 3 1 U 9 1 1 400 1 10 1 6 1 8 6 2 10 1 5 8 1 6 1 1 8 2 500 1 17 6 1 10* 1 15 74 3 6| 1 12 Of 1 10J 1 3 1 15 600 2 5 2 3 2 2 9 4 3; 1 18 2 3 1 8 2 2 2j 700 2 12 6 2 ^i 2 9 10i 4 11 ; 2 4 ioi 2 7 1 9 2 9 3l 800 3 3 2 17 5 8] 2 11 *MI 3 2 2 16 3, 900 3 7 6 3 44 3 4 H 6 4i 2 17 8| 3 1 .', 2 3 3 3 4; 1000 8 15 3 9 3 11 3 7 L 3 4 14 3 9 2 6 3 10 4 1100 4 2 6 4 2 3 18 4 7 10' 3 10 6 4 2 2 9 3 17 5 1200 4 10 4 6 4 5 6 8 64 3 16 H4 4 6 3 4 4 5 4 1300 4 17 6 4 104 4 12 71 9 3 4 3 44 4 10* 3 3 4 11 6* 1400 5 5 5 3 4 19 9 9 114 4 9 9* 5 3 3 6 4 IS 61 1500 5 12 6 5 71 5 6 104 10 4 1C. If 5 7 3 9 5 5 6 I i;oo r> 7 6 6 6 5 14 1 11 12 4 f u 5 5 2 9 6 6 4 4 3 5 5 12 19 A 1800 ! 6 1900 7 15 2 6 7 9 8 x 15 3 44 12 13 9| I i ' 5 15 1 54 5 7 1* 4 4 6 9 c! 5 8} 13! 8a 2000 7 10 7 6 7 3 6 14 3 C, 8 3 7 6 5 7 9* 169 INDEX. A. PAGE Account Sales 1 Average Accustomed 12 Acceptance, Supra-protest 25 Arbitration of Exchange 29 Ditto Simple and Compound 29 Auditing, Notes upon 59-77 Ditto Definition of the Term 59 Audits, Formal and Continuous 59 Agreement Book, Form of 72 Allotment Book, Description of 71 Advices 85 Abstract Ledger 112 Assignation of a Policy of Assurance 119 B. Bills of Lading, Description and Form of 12-14 Bill of Lading Customs, Form of 16, 17 Bills of Exchange, Foreign and Inland 21-26 Bill Qualified, Definition of 25 Balance of Trade, Explanation of 28 Better and Worse, Explanation of 28 Book-keeping by Single Entry, Explanation and set of Books. .50-58 Book-keeping by Double Entry, Notes upon 59-77 Bills Receivable Book 62 Bills Payable Book 62, 63 Bills, Notes on 63 Balance Sheets 74 Balancing 86 Bill Advice 88 Bank Pass Book 89 Bad and Doubtful Debts, Treatment of 76 Bank Return, Illustration and Explanation of 141 Building Society Tables 144-150 C. Consignment Account, Form of 88, 89 Captain's Account, Form of 9 160 PAGE Certificate of Survey 4 Charter Party, Forms of 15, 18 Charter Party, Description and Forms of 13, 14 Charter Party, Government Form 13 Charter Time 13 Customs Bill of Lading and Specification, Form of 16 Course of Exchange 28 Capital, Payment of Dividend out of 36 Co-operative Society's Accounts and Depreciation 44 Compensation Account, Form of 50 Continuous Audit 59 Cash Book 60 C.I.F. Cargoes, Illustrations and Explanation of 79 Copy Bill Book 62, 84 Cargo Book, Description and Form of 85, 95 Costing, Description of 101 Cost Journal 103 Cost Ledger 107 Conversion Account 121 D. Declaration, Form of when Customs Manifest is dispensed with 10 Discount 22 Depreciation, Definition and General Description of 33 Ditto Methods of Treatment 34 Ditto Calculation of 38 Ditto Sinking Fund and Annuity, Methods of Treat- ment 40, 44 Double Entry in Book-keeping, Notes upon 59 Directors' Minute Book 69 Day Book 68, 83 E. Exchange, Description of 26-33 Ditto Bills of 21-26 Ditto Par of 27, 28 Ditto Course of 28 Ditto Examples of 26-33 Ditto Arbitration of 29 Ditto Treatment of as regards Voyage Accounts 32, 33 F. Fine Trade Bills 31 Fine Bank Bills 31 Formal Audits 59 Financial Books, Description of 59 161 PAGE F.O.B., Cargoes, Illustrations and Explanation of 78 Fixed Capital 37 G. Goodwill, Depreciation of 46 Grain Accounts 77-99 Grain Table, Example of ; 157 General Ship 13 H. Hat Money 12 Hire, Purchase of Wagons, Treatment of Depreciation in connection with 46 I. Invoices 68 Investments 76 Issue Books, Description and Example of 112 Insurance Brokers 116 Investment Table 156 J. Journal, Forms and Description of 64 L. Long Bills 31 Ledger 69 Loan Register 70 Liabilities 76 Life Policies, Descriptive 116-120 Leasehold House, Valuation of 137 Lay Days 13 M. Mate's Receipt 12 Mining, Treatment of Depreciation 41, 45 Mortgage Register Book 71 Market Reports 86 Miscellanea 136 Marine Insurance 158 MisceUaueous Tables 143 Mortgage Tables 145-150 Marine Insurance Table 158 N. Novation, Definition of 26 L 162 PAOB Notice >, Form of in connection with Railways and Mine Workings 47-50 P. Pro-formS, Accounts and Form 2, 3 Protest, Definition and Form of 7, 8 Primage 12 Par of Exchange 27 Patents, Depreciation of 47 Purchase Return Book, Object of 66 Purchase Book, Description and Example of 68-92 Petty Cash Book, Description and Example of 61, 96, 97 Prospective Method of Valuing a Life Policy 118 R, Re-exchange 31 Reserves 36, 121 Residual Values 34 Railway Companies and Mine Workings 47 Ditto Forms of Notice and Counter Notice and Compen- sation Account 48-50 Royalty Rent 50 Revenue Accounts, Description of 72 Reserve Fund 121 Reconcilement Account 91 Retrospective Method of Calculating the Value of a Life Policy 118 Rail Tables 151-155 S. Surveys, Description of, and Form of Account 4-o Shipping Accounts 5, 6, 11, 12 Specifications and Manifests 6, 7 Shipping Order, Form of 10, 11 Set of Exchange, Explanation of 25 Sola Bill, Definition and Example of 25 Specie Points, Definition of 31 Short Bills, ,, 3.1 Single Ship Companies Depreciation 45 Single Entry in Book-keeping 50 Ditto Conversion to Double Entry 52 Sectional Balancing 59 Statistical Books, Descriptive 59,69 Self Balancing Books 65 Sales Returns Book 66 Stocks, Description of 66 Sales Book, Form of ^2 168 PAOl Stock Ledger, Form of 85 Station Agent's Book, Description of 85 Shipping Documents 85 Sworn Meter, Definition of 8K Spoiled Bill Stamp 88 Stores Book 112 Surrender Value 117 Sinking Fund, Definition and Illustration of 121 Suspense Accounts 121, 133 Secret Reserves, Definition of 122 Sliding Scale, Illustration of 142 T. Type, Treatment of, Depreciation of 44 Transfer Ledger 70 Trade Debtors 75 Terms Current in the Grain Trade 98 Transfer of Stocks and Shares 99-101 Time Book, Form of Ill Trial Balance 114 V. Voyage Accounts, Treatment of Exchange in 32 Valuation Account for Compensation Purposes 137, 138 W. Wages Book, Form of Ill Wayleaves ..142, 143 EMIER CODE USED SEE BACK. JULY, 1901, [ams-"EFFINGERE, LONDON". CATALOGUE OF Commerciat sn6 otfkr PUBLISHED AND SOLD BY 1FFINGHAM WILSON, 11 ROYAL EXCHANGE, LONDON, TO WHICH IS ADDED A LIST OF TELEGRAPH CODES, EFFINGHAM WILSON undertakes the printing publishing of Pamphlets and Books of every jcription upon Commission. Estimates given, and iditions of Publication may be had on application. INDEX. Arbitrage PAGE Haupt, O. (Arbitrages et Parit^s) 17 Willdey's American Stocks . 26 Arbitration- London Chamber of. . .24 Lynch, H. Foulks . . .20 Banking- Banks and their Customers . 26 Banks, Bankers and Banking . 22 Bibliography (Bank of England) 25 Easton's Banks and Banking . 15 Easton's Work of a Bank . .15 English and Foreign (Attfield) . n Examination Questions, Arith- metic and Algebra . . 21 Half-yearly Balance Sheets . n Howarth's Clearing Houses . 18 Hutchison, J 18 Journal Institute of Bankers . 19 Legal Decisions affecting Bankers 5 Questions on Banking Practice . 23 Scottish Banking . . . 19 Smith's Banker and Customer . 24 Token Money of the Bank of England .... 22 Bankruptcy McEwen (Accounts) . . .20 Stewart (Law of) . .7 Bills of Exchange Kolkenbeck (Stamp Duties on) . 19 Loyd's Lectures . . .20 Smith (Law of Bills, etc.) . . 7 Bimetallism- List of Works . . . 27, 28 Book-keeping Cariss 13 Carr (Investors) . . .11 Drapers' Accounts . . .15 Harlow's Examination Questions 17 Holah's Double Entry . . 10 Jackson 18 Richardson's Weekly Newspapers 23 Sawyer 24 Seebohm's (Theory) . 10 Sheffield (Solicitors) ... 24 Van de Linde . . . .25 Warner (Stock Exchange) . 26 OUrks - Commercial Handbook . . 10 Companion to "Solicitor's Clerk" 19 PAGE 23 I Clerks (continued) Corn Trade Counting-house Guide Kennedy (Stockbrokers) . . 8 Mercantile Practice (Johnson) . 18 Merchant's .... 9 School to Office ... 9 Solicitor's . - . 19 Correspondence (Commercial) - Beaure . . . . .11 Martin (Stockbrokers) . . 8 Coumbe 13 Counting-house Crowley 10 Pearce 9 Tate . . . . . . 25 County Court Jones 19 Currency and Finance Aldenham (Lord) . . .10 Barclay (Robert) . . .11 Clare's Money Market Primer . 13 Cobb 13 Cuthbertson . . . .14 Del Mar's History . . .14 Del Mar's Science of Money . 14 Ellis 15 Gibbs, Hon. H., Bimetallic Primer 16 Haupt 17 Indian Coinage and Currency . 23 Poor (H. V.) The Money Ques- tion 23 Dictionaries Meliot's French and English . 21 Directors Haycraft (Liabilities and Duties) 9 Exchanges Brazilian Exchanges . . .26 Clare 13 Goschen . . . . .16 Norman's Universal Cambist . 22 Tale's Modern Cambist . . 25 Exchange Tables- American Exchange Rates . 10 Dollar (Eastern) ... 19 Garratt (South American) . . \'i Lecoffre (French) . . .19 (Austria and Holland) 19 Merces (Indian) . . .22 Schultz (American) . . .24 Schultz (German) ... 24 EFFINGHAM WILSON, 11 ROYAL EXCHANGE, LONDON. 3 insurance PAGE Bourne's Publications . . 12 Short-Term Table ... 25 Marine Insurance ... 6 Interest Tables Bosanquet ..... Crosbie and Law (Product) Cummins (2^ / ) Gilbert's Interest and Contango Gumersall Ham (Panton) Universal . Indian Interest (Merces) . Lewis (Time Tables) . Rutter Schultz Wilhelm (Compound) Investors (see also Stock Exchange Manuals) *Birk's Investment Ledger . Investment Profit Tables . Houses and Land How to Invest Money Joint-Stock Companies- Chart for Ready Reference Company Frauds Abolition Company Promoters (Law of) . Companies Acts, 1862-1900 Cummins' Formation of Accounts Emery's Treatise of Company Law Haycraft (Directors) . Pufbrook's Responsibilities of Directors .... Simonson's Companies Act, 1900 Simonson s Debentures and De- benture Stock (Law of) . Smith Law (Various Subjects) Charter Parties .... Copyright Law .... District and Parish Councils (Lithiby) .... Factors (Law relating to) . First Elements of Legal Pro- cedure . . . Food and Drugs General Average High Court Practice . Licensing Acts .... Marine Insurance Maritime Law .... Patent Law and Practice (Emery) Property Law (Maude) Railway Law . Solicitors' Forms (Charles Jones) Thames River Law . Workmen's Compensation Legal and Useful Handy Books List of . . . -7 Maps PAGE British Columbia ... 7 Gold Coast .... 6 Hauraki Goldfields ... 6 Kalgoorlie .... 6 Tasmania, West Coast of. . 6 Witwatersrand Goldfields . . 6 Maritime Codes- Germany 10 Holland and Belgium . . 23 Italy 23 Spain and Portugal . . .23 Mining- Accounts of G. M. Cos. . . 14 Beeman's Australian Mining Manual n British Columbia Mining Laws 12 Charlton's Information for Gold Mining Investors . . .13 Gabbott's How to Invest in Mines 15 Goldmann (South African Mining) 16 Milford's Dictionary of Mining Terms . . . . .22 Mount Lyell Mining Manual . 24 Paull's Columbia and Klondyke Manual . . . . .22 Tin-Mining in Spain. . . 12 Wallach's West African Manual 26 Miscellaneous Arithmetic and Algebra . . 21 Australia in 1897 . . .22 Author's Guide . . . .27 On Compound Interest and An- nuities 24 Cotton Trade of Great Britain . 15 Gresham, Sir Thomas (Life of) . 12 Ham's Customs Year Book . 17 Ham's Inland Revenue Year Book 17 His Lordship's Whim . . 4 Kew Gardens (Illustrations) . 26 Lawyers and their Clients . . 6 Macfee, K. N., Imperial Customs Union 20 Merchandise by Rail (Registered System) 17 Public Man . . . .26 Public Meetings . . .26 Red Palmer . . . -25 Schedule D of Income Tax . 10 Veld and " Street " . . .17 Workmen's Compensation . 5 World's Statistics . . .11 Money Market (see Currency and Finance). Pamphlets 27 Prices- Ellis (Market Fluctuations) . 15 Mathieson (Stocks) . . .21 EFFINGHAM WILSON, PAGE Railways- American and British Investors . 26 Dunsford( Dividends and Prices) 15 Home Rails as Investments . 25 Mathieson's Traffics . . .21 Poor's Manual (American) . 23 Railroad Report (Anatomy of a) 27 Ready Reckoner s(see also Exchange Tables, Interest, etc.) Buyers and Sellers' (Ferguson) . 9 Commission and Brokerage . 22 Henselin's (Multiplication) . 17 Ingram (Yards) . . . .18 Kilogramme Tables . . -25 Redeemable Stocks (Mathieson) 21 Merces (Indian) . . .22 Robinson (Share) . . 23 Silver Tables (Bar Silver) . .16 Sinking Fund and Annuity Tables Booth and Grai iger (Diagram) . 12 Hughes 18 Speculation (see Investors and Stock Exchange). Stock Exchange Manuals, etc. Contango Tables . . .16 Cordingley's Guides ... 5 Fenn on the Funds, English and Foreign . . . . 15 Higgins, Leonard, The Put-and- Call 18 How to Read the Money Article 4 PAGE Stock Exchange Manuals,etc^ ~ont. ) Investor's Ledger . . .21 Investors' Tables, Permanent or Redeemable Stocks . .18 Laws and Customs (Melsheimer) 21 Laws, English and Foreign Funds (Royle) ... 24 Options (Castelli) . . .13 Poor's American Railroad Manual 23 Rapid Share Calculator . .14 Redeemable Stocks (a Diagram) 12 Registration of Transfers . -15 Robinson (Share Tables) . . 23 Rules and Usages (Stutfield) . 25 Stock Exchange Official Intelli- gence 25 Willdey's American Stocks . 26 Tables (see Exchange Tables, Inter- est Tables, Ready Reckoners, and Sinking Fund and Annuity Tables, etc.). Telegraph Codes Ager's (list of) . . . 29, 30 Miscellaneous (list of) 30, 31 The Premier Code . . 32 Trustees Investment of Trust Funds 7 Judicial Trustees Act, 1896 19 Marrack's Statutory Trust In vestments ... 20 Trustees, their Duties, etc. Wilson's Legal and Useful Handy Books List .... 7-10 NEW BOOKS. Just Ready. MARITIME LAW. Illustrated in the Form of a Narrative of a Ship, from and including the Agreement to Build her until she becomes a Total Loss. By ALBERT SAUNDERS, Solicitor. Price 2ls. THE COMPANIES ACT, 1900, with Commentaries. By P. F. SIMONSON, Author of " Law Relating to Debentures and Debenture Stock ". Price 5s. RESPONSIBILITIES OF DIRECTORS AND WORKING OF COMPANIES UNDER THE COMPANIES ACTS, 1862-1900. By ANTHONY PULBROOK, Solicitor, Author of Numerous Books on Companies' Law and Practice. Price 3s. 6r/. net. 1 1 ROYAL EXCHANGE, LONDON. 5 NEW BOOKS continued. HANDY BOOK ON THE LAW AND PRACTICE OF JOINT STOCK COMPANIES INCORPORATED UNDER THE COMPANIES ACTS, 1862-1900, WITH FORMS AND PRECEDENTS. Being a Manual for Secretaries and others interested in the Practical Legal Management of the Business of a Company. By ANTHONY PULBROOK, Solicitor. Third, Revised and Rewritten edition. Price 4s. HIS LORDSHIP'S WHIM. A NOVEL. By GORDON CUMINO WHADCOAT. Price 6s. HOW TO READ THE MONEY ARTICLE. By CHAS. DUGUID. Third Edition. Price 2s. 6d. THE WORKMEN'S COMPENSATION ACT, 1897. A Plea for Revision. By R. T. THOMSON. Price 2s. 6d. net. A CHART OF READY REFERENCE FOR OFFICE USE, Showing at a glance the Returns to be made and Registers to be kept by Companies Registered under the Companies Acts having Capitals divided into Shares. Compiled by T. L. WILKINSON, Solicitor. Price 3s. 6 11 ROYAL EXCHANGE, LONDON. 21 MATHIESON, FREDC. C., & SONS. Monthly Traffic Tables ; showing Traffic to date and giving as comparison, the adjusted Traffics of the corre- sponding date in the previous year. Price 6rf., by post Id. Monthly. American Traffic Tables. Monthly. Price 6rf., by post, Id. Highest and Lowest Prices, and Dividends paid during the past six years. Annually. Price 2s. 6d. Provincial Highest and Lowest Prices as quoted on the following Stock Exchanges: Birmingham, Dublin, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Sheffield. Annually. Price 2s. 6d. Six Months' Prices and Dates. Uniform with " Highest and Lowest Prices ". Annually, in July. Price 2s. 6d. Handbook for Investors. A Pocket Record of Stock Exchange Prices and Dividends for Past Ten Years of the Fluctuating Securities. Price 2s. Qd. net. Investor's Handbook of Railway Statistics, 1881-1901. Annually. Price Is. Investor's Ledger. Price 3s. 6d. Monthly Mining Handbook. Price 15. Redeemable Investment Tables. Calculations checked and extended. By A. SKENE SMITH. Price 15s. net. MAUDE, WILLIAM C., Barrister- at- Law. Property Law for General Readers. Price 85. 6d. MAY, J. R. Institute of Bankers' Examinations. Examination Questions in Arithmetic and Algebra. Preliminary and Final for Nineteen Years, 1880-1898, with Answers. Pre- liminary Part, price Is. 6d. Final Part, price Is. 6d. MELIOT'S English and French Explanatory Dictionary of Terms and Phrases relating to Finance, the Stock Exchange, Joint-Stock Companies and Gold Mining. Price 5s. net. MELSHEIMER and GARDNER. Law and Customs of the London Stock Exchange, Third Edition. Price 7s. 6rf. 22 EFFINGHAM WILSON, MERGES, F. A. D. Indian Exchange Tables. A New Edition, Showing the Conversion of English Money into Indian Currency, and vice versa, calculated for every Thirty-second of a Penny; from Is. to Is. 6d., price 15s. net.; Supplements I/ to I/ 31/32 55. ; 1/1 to 1/1 31/32 5s. net. Indian Interest Tables, from 1 to 15 percent, per annum of 360 and 365 days; also Commission, Discount and Brokerage from 1 anna to 15 per cent. Price 8s. net. Indian Ready Reckoner. Containing Tables of Rates by Number, Quantity, Weight, etc., including fractions of a Maund, at any rate from f Pie to 250 Rs. ; also Tables of Income, Exchange (Is. 2d. to Is. &/.), Interest and Com- mission. Sixth Edition. Price 36s. net. MILFORD PHILIP. Pocket Dictionary of Mining Terms. Third Edition. Price Is. NORMAN, F. S. C. Tables of Commission and Due Dates. Price 2s, net. NORMAN, J. H. Universal Cambist. A Ready Reckoner of the World's Foreign and Colonial Exchanges of Seven Monetary and Currency Intermediaries, also the Present Mechanism of the Interchanges of Things between Man and Man and between Community and Community. Price 12s. 6d. net. PALGRAYE, R. H. INGLIS. Bank Rate in England, France and Germany, 1844- 1878, with Remarks on the Causes which influence the Rate of Interest charged, and an Analysis of the Accounts of the Bank of England. Price 10s. 6. Price 2s. 6d. 11 ROYAL EXCHANGE, LONDON. 23 POCOCK, W. A. An Epitome of the Practice of the Chancery and King's Bench Divisions of the High Court of Justice. Price 2s. 6d. net. POOR, H. Y. & H. W. Manual of the Railroads of the United States, and other Investment Securities. Statements showing the Financial Condition, etc., of the United States, and of all leading Industrial Enterprises. Statements showing the Mileage, Stocks, Bonds, Cost,. Traffic, Earnings, Expenses and Organizations of the Rail- roads of the United States, with a Sketch of their Rise, Progress, Influence, etc. Together with 70 Maps and an Appendix, containing a full Analysis of the Debts of the United States and of the several States, published Annually. Price 45s. net. The Money Question. A Handbook for the Times. Price 65. net. PROBYN, L. C. Indian Coinage and Currency. Price 45. QUESTIONS ON BANKING PRACTICE. Revised by, and issued under the sanction of, the Council of the Institute of Bankers. Fifth Edition, enlarged. Price 65. RAIKES, F. W. (His Honour JUDGE), Q.C., LL.D. The Maritime Codes of Holland and Belgium. Price 105. 6d. The Maritime Codes of Spain and Portugal. Price 75. 6d. net. " Dr. Raikes is known as a profound student of maritime jurisprudence, and he has been able to use his knowledge in a number of notes, in which the law of England and of other countries is compared with that of the Iberian Peninsula." Law Journal. Maritime Codes of Italy. Price 12.9. 6d. net. RICHARDSON, G. H. Book-keeping for Weekly Newspapers. A Manual for Newspaper Managers and Clerks. With an Introduction by H. CALDER MARSHALL, Chartered Accountant. Second Edition, entirely revised and enlarged. Price 85. 6d. RICHTER, HENRY. The Corn Trade Invoice Clerk. Price Is. net. ROBINSON. Share and Stock Tables ; comprising a set of Tables for Calculating the Cost of any number of Shares, at any price from l-16th of a pound sterling, or 15. 3d. per share, to 310 per share in value ; and from 1 to 500 shares, or from 100 to 50,000 stock. Seventh Edition, price 55 24 EFFINGHAM WILSON, ROYLE, WILLIAM. Laws relating to English and Foreign Funds, Shares and Securities. The Stock Exchange, its Usages, and the Rights of Vendors and Purchasers. Price 6s. RUSSELL, RICHARD. Company Frauds Abolition. Suggested by a review of the Company Lawfor more than half a century. Price Is. 6d. RUSSELL, H. A. H. The Mount Lyell Mining Manual. (Tasmania), 1900. With Plan. Price 25. 6d. net. RUTTER, HENRY. General Interest Tables for Dollars, Francs, Milreis, etc., adapted to both the English and Indian Currency, at rates varying from 1 to 12 per cent, on the Decimal System. Price 10s. 6d. SAWYER, JOHN. Practical Book-keeping. Suitable for all Businesses. Price 2s. 6d. SCHULTZ. Universal American Dollar Exchange Tables, Epitome of Rates from $4.80 to $4.90 per , and from 3s. Wei. to 4s. Qd. per ft, with an I ntroductory Chapter on the Coinages and Exchanges of the World. Price 10s. 6d. Universal Dollar Tables. Complete United States Edition. Covering all Exchanges between the United States and Great Britain, France, Belgium, Switzerland, Italy, Spain and Germany. Price 21s. Universal Interest and General Percentage Tables on any given amount in any Currency. Price 7s. Qd. English-German Exchange Tables, from 20 marks to 21 per by "025 mark per , progressively. Price 5s. SENHOUSE, R. MINTON-, and G. P. EMERY, Barristers. Accidents to Workmen. Being a Treatise on the Employers' Liability Act, 1880; Lord Campbell's Act, and the Workmen's Compensation Act, 1898. Demy 8vo, cloth. Price 15s. Case Law of the Workmen's Compensation Act, 1897. Second Edition. Price 3s. 6d. net. SHEARMAN, MONTAGUE, and THOS. W. HAYCRAFT. London Chamber of Arbitration. A Guide to the Law and Practice, with Rules and Forms. Second Edition. Price 2s. tid. SHEFFIELD, GEORGE. Simplex System of Solicitors Book-keeping. Price f, net. 11 ROYAL EXCHANGE, LONDON. 25 SIMONSON, PAUL F., M.A. (Oxon.). Treatise on the Law Relating to Debentures and Deben- ture Stock issued by Trading and Public Companies and by Local Authorities, with Forms and Precedents. Second and Revised Edition. Price 21s. SMITH, A. SKENE. Compound Interest : as exemplified in the Calculation of Annuities, immediate and deferred, Present Values and Amounts, Insurance Premiums, Repayment of Loans, Capi- talisation of Rentals and Incomes, etc. Second and En- larged Edition. Price 15. net. " It is written with a business-like explicitness, and cannot fail to prove useful." Scotsman. SMITH, JAMES WALTER. The Law of Banker and Customer. New and Revised Edition. Price 5s. STEPHENS, T. A. A Contribution to the Bibliography of the Bank of England. Price 105. 6rf. STEVENS, W. J. Home Railways as Investments. Second Edition. Price 25. 6d. net. " An interesting and instructive treatise." Daily Chronicle. STEWART, F. S. English Weights, with their equivalents in Kilogrammes. Calculated from 1 pound to 1 ton by pounds, and from 1 ton to 100 tons by tons. Compiled expressly for the use of Merchants and Shipping Agents to facilitate the making out the Documents for Foreign Custom Houses. Price 25. 6d. net. STOCK EXCHANGE OFFICIAL INTELLIGENCE ; Being a carefully compiled precis of information regard- ing British, American and Foreign Stocks, Corporation, Colonial and Government Securities, Railways, Banks, Canals, Docks, Gas, Insurance, Land, Mines, Shipping, Telegraphs, Tramways, Water-works and other Companies. Published Annually under the sanction of the Committee. Price 505. STRONG, W. R. Short-Term Table for apportioning Interest, Annuities, Premiums, etc., etc. Price 15. STUTFIELD, G. HERBERT, and CAUTLEY, HENRY STROTHER. Rules and Usages of the Stock Exchange. Containing the Text of the Rules and an Explanation of the general course of business, with Practical Notes and Comments. Third and Revised Edition. Price 65. net. 26 EFFINGHAM WILSON, TATE. Modern Cambist. A Manual of Foreign Exchanges. The Modern Cambist : forming a Manual of Foreign Exchanges in the various operations of Bills of Exchange and Bullion, according to the practice of all Trading Nations ; with Tables of Foreign Weights and Measures, and their Equivalents in English and French. " A work of great excellence. The care which has rendered this a standard work is still exercised, to cause it to keep pace, from time to time, with the changes in the monetary system of foreign nations." The Times. Twenty-third Edition. By HERMANN SCHMIDT. Price 12s. Counting House Guide to the Higher Branches of Commercial Calculation. Price 7s. 6d. TAYLER, J. Red Palmer. A Practical Treatise on Fly Fishing. Fourth Edition. Price Is. 6d. net. A Guide to the Business of Public Meetings. The Duties and Powers of Chairman, with the modes of Procedure and Rules of Debate. Second Edition. Price 2s. 6d. net. The Public Man : His Duties, Powers and Privileges, and how to Exercise them. Price 3s. 6d. net. VAN DE LINDE, GERARD. Book-keeping and other Papers. Adopted by the In- stitute of Bankers as a Text- Book for use in connection with their Examinations. New and Enlarged Edition. Price 6s. 6rf. net. VAN OSS, S. F. American Railroads and British Investors. Price 3s. 6d. net. WALLACH, HENRY, F.R.G.S. West African Manual, with two Sketch Maps. Fourth and enlarged edition. Price 4s. WALLIS, E. J. Royal Botanic Gardens, Kew. Thirty Full-page Illus- trations from Photographs taken by Permission. Price 2s. 6d. net. WARNER, ROBERT. Stock Exchange Book-keeping. Price 25. 6d. net. WARREN, HENRY. Banks and their Customers. A Practical Guide for all who keep Banking Accounts from the Customer's point of view. By the Author of " The Banks and the Public ". Fourth Edition. Price Is. net. WILEMAN, J. P., C.E. Brazilian Exchange, the Study of an Inconvertible Currency. Price 5s. net. 1 1 ROYAL EXCHANGE, LONDON. 27 WILHELM, JOHN. Comprehensive Tables of Compound Interest (not Decimals) on 1, 5, 25, 50, 75 and 100. Showing Accumulations Year by Year for Fifty Years at Rates of Interest from 1 (progressing ^) to 5 per cent. Price 25, 6J, net. WILLDEY. Parities of American Stocks in London, New York and Amsterdam, at all Rates of Exchange of the day. Price 2s. WILSON. Author's Guide. A Guide to Authors; showing how to correct the press, according to the mode adopted and under- stood by Printers. On Card. Price 6d. Investment Table: showing the Actual Interest or Profit per cent, per annum derived from any purchase or invest- ment at rates of Interest from 2 to 10 per cent. Price 2s. net. WOODLOCK, THOMAS F. The Anatomy of a Railroad Report. Price 25. 6d. net. " Careful perusal of this useful work will enable the points in an American railroad report to be grasped without difficulty." Statist. RECENT PAMPHLETS. Expansion of Trade in China. By T. H. WHITEHEAD, Member of the Legislative Council, Hong-Kong. Price Is. The Insurance Question Plainly Treated for Plain People. Fire, Life, Accident, etc. By E. P. HENDERSON. Price Is. A Century of Copper. Part I., Statistics. By NICOL BROWN and C. CORBETT TURN- BULL. (Out of Print.) Part II., Expansion of the Industry ; Cost of Extraction ; Uses of the Metal ; Distribution of the Ores, etc. Price 5s. Corn-Trade and Option Markets Considered in Relation to Social Economic Problems. By F. HAMMERFAHR. Price 25. 6d. Indian Currency: An Essay. By WILLIAM FOWLER, LL.B. Price Is. Notes on Money and International Exchanges. By SIR J. B. PHEAR. Price Is. The Indian Finance Difficulty. A Solution. Price Qd. Suggested Alterations in the Bank Act of 184*. By an EX-BANK MANAGER. Revised Edition. Price Is. Cost Price Life Assurance. A Plain Guide to Offices yielding 2 and 4 p"er cent. Compound Interest per annum on Ordinary and Endowment Policies. Third Edition. By T. G. ROSE. Price 6d. The Currency of China. (A Short Enquiry). By JAMES K. MORRISON. Price Is. 28 EFFINGHAM WILSON" Pamphlets, etc., on Bimetallism. BULL'S CURRENCY PROBLEM AND ITS SOLU- TION. Cloth, 2s. 6d. DICK'S INTERNATIONAL BULLION MONEY. Price 6d. DOUGLAS (J. M.) GOLD AND SILVER MONEY: A Vital British Home Question, with Tables of Average Prices of Commodities and Silver from 1846 till 1892. Price 6d. GEORGE'S THE SILVER AND INDIAN CURRENCY QUESTIONS. Price Is. 3d. LEAVER'S MONEY: its Origin, its Internal and Inter- national Rise and Development. Price Is. MANISTY'S CURRENCY FOR THE CROWD ; or, Great Britain Herself Again. Price Is. MEYSEY-THOMPSON'S (Sm HENRY M., Bart, M.P.) PRIZE ESSAY. Injury to British Trade and Manufactures. By GEO. JAMIESON, Esq. Price 6r trinpor.uv t. LONDON: EFFINGHAM WILSON, ROYAL BXfiHANl HOBBS.HARUCO-.Ltd. MANUFACTURE LOCKS, STEEL SAFES, BULLION AND PARTY-WALL DOORS, TO MEET ALL RISKS AND REQUIREMENTS. General Office & Manufactory: ARLINGTON STREET, LONDON, N. Show Rooms: 76, CHEAPSIDE, E.G. LAW GUA VXIVERSITY OF CALIFORNIA LIBRARY Due two weeks after date. iOCIETY Subscribed ( Reserve THE HON. MK. THOMAS RAWLE, t 1902. RADCLYFFE WAI/I Chairman 1 901-11 E. J. BRISTOW, Es JOHN EDWU. GRAV JOHN HUNTER, Es Assist. Manager General 100,000. 5,000!^ E GRANTHAM. .NSON, Esq. ITEFIORE. Esq. ;q. Esq. sq. n R S. BATES. DNALD. OLICIES ar the fidelity lectors, and Receivers', Ba LT to Employers travellers, ('>!- it or confidence, lunacy < '<>m- The rates are inn 01 y offered. Loan fed. The advjii placed Depreciation f ] ( Indenuiiti. I ><-l'iitures can be ^ept down. Icense insured ANCE. lea, iMVrtsin Title, &c. .te Risks, &c. HK Society Wills. M .-,",-. S. .tor or Trustee under truments. fURE-HOLDERS. Head Office. .-, LANE, LONDON, W.C. City Office: 56, MOORGATE STREET, E.G. BRANCHES at Dnblin, Edinburgh, Birmingham, Glasgow, Huddersfleld. Leedfl, -ter, Newcastle-on Tynp, Nottingham. Royal Exchange Assurance. INCORPORATED A.D. 1720 JFo* Sea, Fize, Life, Accidents, Chief Office : ROYAL EXCHANGE, LONDON, E.C. FUNDS IN HAND exceed 4,500,000. CLAIMS PAID 40,000,000. FI JRE. Insurances are granted agrainst Loss or Damage by Fire on Property of almost every description, at moderate rates. LIFE Every description of Life Assurance ^. Absolute Security. Largre Moderate Premiu r / Accidents and Insurances against Employer's Liability and granted. Bonuses on Accident Policies at, Tola' Apply for Full Prospectus t lity. < are now and BOOKS T With cross reference? statutes, with ai. scribed by the Bo.. B.A., and STA / $s. net. A TREATISE ON COiV.. r.,.. G. F. EMERY, LL.M. Price 21.- of all the fees pre- :N, LL.B., .w. Price ._ ..2-1900. By A TREATISE ON THE LAW RELATING' TO DEBENTURES AND DEBENTURE STOCK issued by Trading and Public Companies and by Local Authorities, with Forms and Precedents. Second and Revised Edition. By PAUL F. SIMONSOM, M.A. (Oxon.). Price 2u. THE COMPANIES ACT, 1900, with Commentaries. By P. F. SIMONSON. Price 5*. net. RESPONSIBILITIES OF DIRECTORS AND WORKING OF COMPANIES UNDER THE COMPANIES ACTS, 18621900. By ANTHONY PULBROOK, Solicitor, Author of numerous Books on Companies' Law and Practice. Price y. 6d. net LAW RELATING TO COMPANY PROMOTERS. By W. NHMBHARD HIBBKRT, LL.D. Price $s. net. THE LAW OF JOINT STOCK COMPANIES 1862-1900. New and Revised Edition. Twenty-sixth Thousand. Py JA.MKS WALTER SMITH, Esq., LL.D. Price 2S. net. LONDON: EFFINGHAM WILSON, ROYAL EXCHANGE.