'/ BOOK-KEEPING AND EXCHANGES MODERNIZED. c^ntmti at §)tattowtit' ^alU x) Yi I 'i K THE ELEMENTS OP BOOK-KEEPING; COMPRISING A SYSTEM OF MERCHANTS' ACCOUNTS, FOUNDED ON REAL BUSINESS, AND ADAPTED TO MODERN PRACTICE. WITH AN APPENDIX ON EXCHANGES, BANKING, AND OTHER COMMERCIAL SUBJECTS. BY P. KELLY, MASTER OF FINSBURY SQUARE ACADEMY, LONDON. THE THIRD EDITION, ENLARGED. LONDON: PRINTED FOR J. JOHNSON, ST. PAUL's CHURCH YARD ; Ky J. Whiting, Finsbury Place. 1805. ADVERTISEMENT TO THE THIRD EDITION. THE following are the additions and alterations made to this impression. The Second Set of Books is enlarged in order to render it of sufficient length for the general use of Schools ; the Third Set being rather adapted to the higher classes in com- mercial learning. To the Appendix is added a vocabulary of Commercial Terms, including an explanation of the Stocks and public Funds. A description is likewise given of the principles and operations of Banks and Banking Houses. As the successive Editions of a Work of this kind should ex- hibit the Improvements which take place in Commerce, alterati- ons are accordingly introduced into the present edition, particu- larly in the Sales Book, which is made to correspond with the regulations lately established at the West India Docks. FiNSBURY Squahe, Jan. 1,1805. i^053'?4 CONTENTS. PAGE. Introduction, containing Definitions, Principles, Rules, and Examples 1 A short Specimen of Single Entry 3 On Double Entr}' 5 FIRST SET OF BOOKS, being a short Specimen of Double Entry ^ 8 THE SECOND SET OF BOOKS, containing further Examples of the Italian Method of Book-keeping by Double Entry 15 Waste Book 15 Journal 22 Ledger - ... - 28 THE THIRD SET OF BOOKS, being a System of Book-keeping founded on real Business, and arranged after the improved Forms of modern Practice 45 WASTEorDAY BOOK 47 Bill Book 58 Invoice Book 64 Sales Book, or Factory Book 81 Cash Book 1 97 JOURNAL 104 LEDGER 125 Note^ — Besides the above general Heads, the difltercnt Books have thek farticular Pages. Interest Account 170 Account Current Book - - 171 Shipping Accounts and Averages 174 Averages Exemplified - * - 178 Factorage Accounts ..........•••..........*. 180 CONTENTS. APPENDIX on EXCHANGES..-. 181 PART I. On Bills of Exchange 181 PART 11. On the Monies of Exchange, with Rules for calculating their compamtive Value 184 Explanation of Lloyd's List 185 Exchanges of Amsterdam 186 . . Hamburgh .».- 188 . Par i s - 190 .- Madrid - - - - 1 99 — Lisbon. -. • 193 . Leghorn *" ^^''^^ y, 194 — Genoa . Venice — Sundry Places 195 Dublin 196 America and the West Indies 197 PART in. Arbitration of Exchanges, with Rules for Drawing and Remitting to the greatest advantage 195 Simple Arbitration - 200 Compound Arbitration £03 Algebraical Investigation of the Principle of Arbitration . 204 Remittances and Returns exemplified by real Operations. 207 Explanation of Foreign Lists of Exchange 209 Exchange Accounts, ho^v recorded in Book-keeping 211 Explanation of Commercial Terms 214 Directions to Young Clerks in Banking Houses, and in other Departments of Business 225 DIRECTIONS FOR THE STUDY OF THIS WORK. When the Learner has studied the Introductory Part of this Work, so as to understand the Principles and Rules contained in the first 14 pages, he should copy the Waste Book, p. S, and thence form the Journal and Ledger himself. He should proceed in the same manner with the Second Set of Books, copying the Waste Book only, and thence making the Journal, Ledger, Trial Balance, and General Balance, without any other assistance, than occasionally comparing his performance with the Book, or submitting it to his Teacher. Before the Leanier begins the Third Set of Books, he should understand the Plan and Arrangement (as stated p. 45) and also the Calculations of the Invoice and Sales Books ; he should then copy the Waste Book» Bill Book, Invoice and Sales Books ; and from these form the Cash Book himself, according to the Direc- tions, p. 97. He should next Journalise the Waste Book and the Subsidiary, Books in Monthly Divisions, as directed p. 104 ^ — and lastly post the Journal to the Ledger, according to the Rules, p. 125. — The Cash Book, Journal, and Ledger, should be first made out on waste Paper. The Form, Size and Ruling of the Books, should correspond with the models here given ; but it is indifferent whether one or more be contained in the same binding. — The Author's practice has been to comprise the whole system in five Books. — 1, the Waste Book and Cash Book ; 2, the Invoice and Sales Books ; 3, the Bill Book; 4, the Journal; and 5, the Ledger. — It greatly ♦facilitates the Work to make the Pages of the different Books agree with those of the printed Copy. The study of Exchanges should precede that of Book-keeping, and it seems scarcely necessary to obser\^e, that all the Rules and Tables should be fairly written, and the Questions accurately performed. i ^ PREFACE. Though the utility and importance of Book-keeping be uni- versally understood and acknowledged, the use of any new \\ ork on the subject may be questioned, when so many Systems ha»e been written already by men of talents and learning. It is a fact, however, well known, though not easily accounted for, that there is not, in this great commercial nation, any Elen.entary Treatise that accords with the improved practice of the Coun- ting-house. The object, therefore, of the present undertaking is, to explain the Principles and Modern Improvements of Mer- chants* Accounts— to illustrate Rules by real Transactions — and thus to unite a knowledge of Business with that of Book-keeping. This Work consists of Three Sets of Books : — The first ex- plains the Elements of Single and Double Entry, in a concise and simple manner : — The second is a further and more complex Exercise in Double Entry : it is arranged according to the The- ories genei-ally taught in Schools, and, like these, founded on imaginaiy transactions ; but the third Set is founded on Real Business; that is, the materials which compose this System have been selected from the Books of different Merchants, and ar- ranged according to the most' approved practice of the first Counting-houses. This practice does not consist in any change of the principles of Double Entry, but in the adoption of Subsi- diary Books, and in the classification of similar Accounts— ar- rangements which greatly promote perspicuity, precision, and dispatch. Ti fllSTORY OF BOOK-KEEPING. In order to account for the present state of Book-keeping, both in Theory and Practice, it will be necessary to give a concise view of its History. The following sketch is therefore at tempted, which, however imperfect, cannot be wholly uninter- sting to persons engaged in the study of this ingenious and use- ful branch of science. A SHORT HISTORY OF BOOK-KEEPING, The origin of Book-keeping, like that of most other useful arts, is involved in great obscurity. It is generally supposed to have been first prav;tised at Venice in the fifteenth century, when that city was the grand Emporium of Europe. Some writers,* however, think, that Double Entry was known to the ancients, and revived only in Italy with the revival of commerce ; and several passages are quoted, which shew that the ancients entered the receipts and payments of money on opposite pages, in the way of Debtor and Creditor ;t but nothing beyond Single Entry can be inferred from this practice : nor is it probable that any thing more was wanted in the rude and simple state of ancient commerce. In- surances, Bills of Exchange, and other modern improvements. • See Stevln's Book-keeping, applied to Finance,— or Beckman*s Inventions and Discoveries. •f- Of these quotations the following may serve as a specimen : « Huic "{sci/. fortufiie) omnia expensa ; huic omnia feruntur accepta j ct in "■ lota ratione mortalium sola uiramque paginam facit." — Plin. Lib. II. Cap, '7. HISTORY OF BOOK-KEEPING. ?ii demanded, and in all probability produced, correspondent im- provements in the mode of keeping Accounts ; but that which places the subject in the clearest light is, that none of the tech- nical terms* of Double Entry are to be found in the ancient lan- guages, but appear to be immediately derived from the Italian, as adopted in the other languages of Europe.t The nature of Book-keeping admits of various conjectures with respect to its origin. The double purpose of a Bill of Ex- change, J and the manner of recording the same, might have very naturally suggested the idea of Double Entry : the principle might have been even deduced from the Axioms of Euclid, or the properties of an Algebraic Equation ; and the first European who translated Algebra from the writings of the Arabians, is also supposed to have written the first Treatise of Book-keeping. It was published in the Italian language at Venice, about the ♦ Siiellius, who translated Stevin's Book-keeping into Latin, was obliged to in- vent new terms 5 thus he calls Book-keeping, Jpologhtica ; the Ledger, Codex ae- tefti expemique ; ihe Waste Hook, Liber Deletitlui ; the Slock Account, Hon; and the Balance Account, Ep'iioglsmuSf Sec. + A curious exception occurs in the English word Ledijer, (formerly spelt Leager^ Leidgcr, Leiger, znA Leger. The name of this Book, in the Italian and other sou- thern languages of Europe, signifies the Master Book; in French and Dutch, the Great Book; and in German and other northern languages, the Head Book The de- rivations given of Ledger in our princijial dictionaries are fanciTul and contradictory. According to Bailey, it comes from the Latin verb legere^ to gather ; and Dr. John- son says it is derived from the Dutch verb /egger, (a typographical error toi leggen) to lie or remain in a place. The word is, perhaps, derived from ihe Leiger Bookiy kept in feudal times, for the purpose of recording the Rents, Services, and Dunes of Te- nants, who were called Liege-men. X Savory, in his Dictionnaire Commercial, says that the Jews first practised In- surance ; and the invention of Bills of Exchange is univerbally ascribed to this com- mercial people. Now, as they were the principal Merchants of I'aly, when Italian Book-keeping was first used, it may be fairly presumed tbatlhey had also soraeshar« in this invention. Tiii HISTORY OF BOOK-KEEPING. year I4£)a,* by Lucas de Burgo, a Friar, who likewise w rote se- veral useful wo As on Mathematical subjects.t The first Treatise on Book-keeping in tlje English language, of which there is any account, was published in London in the year 1543, by Hugh Oldcastle, a Schoolmaster, and it was after- wards re-printed m the year 1588, by John Mellis.J In 1569, another System of Book-keeping was published in London by James Peele, who says in his preface, that he had mstructed many mercantile people in this art, which had been long practised in other countries, though then new in England. There is no trace of any other, work of the kind until the year 1659, when John Collins, an eminent Accountant and Mathe- matician, published a large System, entitled, ^n Introduction to Merchants' Accounts, which long served as a Standard Book on the subject. * Vers I'an 1495. " Fterc Luc Iialicu de nitiou, ,en fit iiDprlmpr un traite eu ** Italien, (c'cst le plus ancien A.uteur que j'aie vu stir cette matiefe) il fut suivi par ** plusieurs AiUeurs du me me Pays, & par des FiaD9ois, ^\u au commei. cement du *' siecle suivant nous en ont donne des Mcthodes imprimees. Mais Tordre cmbar- ** rassant, & le style long Sc embrouille de ces ouvrages, compares a la neitete & a la ** brievete qui sont en usage aujourd'hui, font voir comblen l'experle»'Ce a poli & ** abrege cette Science." — La Science des Ncgocians et Teneurs de Livres, par M, de la Porte, p. 12. Paris, 1753. + Histoire des Math6raatique8, par M. Montucla, torn. L p. 441— 4T6. t The following Title of this Work is preserved in Ames's Typographical Anti- quities, vol.2, p. 743. *' A briefe instruction and manner how to keepe.bookes of accompts after th« or- 'f der of debitor and creditor, and as well for proper accompts partible, &c. by " three bookes, named the memoriall, journall, and leager. Newly augmented «< and set forth by John Mellis, schole-maister of London- Imprinted by him ** at the Sign e of the White Reare, nigh Baynard's Castle, 1588." In his Epistle to the Reader, Mellis says, " And know ye for certairae, that I presume ** ne vsurpc not to set forth this worke of mine own labour and Industrie, -for '* truely I am but the reneuer and reuiuer of an auncient old copie printed here " in London the 14 of August 1543.'' HISTORY OF BOOK-KEEPING. ix In 1736, John Mair, a celebrated Schoolmaster at Perth, wrote his popular and well-known work, entitled. Book-keeping Methodized ; which, after passing' through several editions, was published, with some alterations, in 176S, under the new title of Book keeping Modernized, These alterations, he says, became necessary, in consequence of " the constant change and perpe- *^ tual flux in the forms and fashions of Accountship." But it may be observed, that if this improved edition was modelled af- ter the real practice of the time, the forms and fashions of Mer- chants' Accounts must have since undergone great changes al- so; for persons, at present instructed in Mair's Book-keeping only, are, when placed in a Countmg-house, generally found ig- norant of what is going forward in every department. In Mair's Book-keeping, however, the principles of Double Entry are explained with great perspicuity and correctness ; but the System is too elaborate and verbose for school practice : se- veral other publications have since appeared, better adapted to this purpose, though differing but little in arrangemeni. The most generally approved are those of Dodson, Weston, Donn^ Hutton, Hamilton, Gordon, Dowling, and Jackson.* It is remarkable that, with a few unimportant exceptions, all the foregoing Authors were either Schoolmasters or Teachers. And though their profession might Irnve rendered them well qua- lified for explaining the Principles of Book-keeping, it was not likely to afford opportunities of deducing their Theories from Practice. The works themselves evidently shew that those writem, in general, followed each other's plans, and took their documents from Books more than from Business. ♦ In giving an account of the English Writers on Book-keeping, mention may be also made of the following, and nearly in the following order : — Between 1700 and 1736, Snell, Hjitton, Malcolm, Miers, Webster, and Stevens; — and since the latter period, Crosby, London, Shortland, Wood, Cook, Sedger, and Dilworth. X HISTORY OF BOOK-KEEPING. A work of a very different description was published in 1789, by Benjamin Booth, a Merchant, who thus observes in his Pre- face :• — ** It is surprising that in a commercial country like this, •' there should not be a Treatise on this subject, which, when " applied to a large scale of business, can be reduced to Prac- " tice. Those 1 have seen, appear to have been written by per- " sons who had not abilities sufficient for the undertaking, or by " such as never had an opportunity of bringing their Theories to " the test of Experience." This elaborate work, which is evi- dently the result of experience, contains various examples of judicious arrangement ; but it is not elementary, having only a Journal and Ledger. It is, however, the only System, of which the Author of the present work has availed himself with any de- gree of advantage. Some smaller Tracts have been since written, which likewise deserve commendation, particularly those of Mr. Wicks and Mr. Shires. I'he latter work is stated to be " the result of thirty years practical experience.'* There is much neatness and inge- nuity in the arrangement of this performance; but, like Booth's Book-keeping, it contains only a Journal and Ledger. In tracing the progress of Italian Book-keeping, something should be said of a rival Method, entitled the English Book-keep- ing, published by Mr. Jones in 1796; a work chiefly remarkable for the enormous subscription raised on the occasion. A pros- pectus of this performance was previously circulated, announcing the discovery of an infallible Method of Book-keepmg by Single Entry, and at the same time representing the Italian Method as delusive and erroneous. By high promises and accredited recom- mendations, subscriptions (at a guinea each) are said to have been obtained, to the amount of six or seven thousand pounds. The work, however, did not answer the expectations of the pub- lic. Several ingenious Tracts soon appeared, defending Double Entr>% and exposing the insufficiency of this new System ; and one of particular merit, written by Mr. Mill, closed the contro- versy. This gentleman, in order to form a comparative estimate HISTORY OF BOOK-KEEPING. xi between the English and Italian Methods, arranged Mr. Jones's materials into a Journal and Ledger, by Double Entry ; and in the course of the operation detected an essential error: — a detec- tion which completed the triumph of Double Entry. j^j^his English System of Book-keeping, however, contains some useful checks, by different columns in the Day-Book and Jour- nal for entering tlie Drs. and Crs. separately ; and also in the Ledger for inserting the Daily and Monthly Transactions ^ and though the work has not been well received, it has proved useful to the the Public as well as to the Author. Some of the columns have been adopted in Counting-houses, and even by subsequent Writers, and the pubHcation has, besides, given rise to much useful enquiry and investigation on the subject of Merchants* Accounts. PREFACE CONCLUDED. FROM the foregoing view of the principal Authors who have written on Book-keeping, it appears that they have been com- posed of two different descriptions, possessing very distinct qua- lifications. The first, and by far the most numerous class were Teachers, who have explained the Principles without adverting to the progressive improvements of Practice : and the second, Merchants, who have exhibited those improvements without ex- plaining the Principles. The productions of both classes of Writers are highly useful ; and to combine their utility is the V object of the present undertaking. Thus the Author's endeavour has been to unite the Elemen- tary Instructions of the School-master with the Practical Im- provements of the Merchant. In the department of teaching he has had much experience, and he has also had access for many years to the Books of several eminent Merchants— a privilege which he gratefully acknowledges. With such an advantage^ a more elaborate work than the present might have been expected, but it is chiefly intended for the nse of Schools, where large Sys- tems are impracticable ; and persons who under-stand this Tract, xii PREFACE CONCLUDED. wiil soon be able to comprehend the business of a Counting- house. The Writer's purpose is to initiate Youth in Commer- cial Knowledge— not to teach Merchants, who are generally the best judges of their own concerns, and from wiiom he himself has received his instructions : — neither does he pretend to any in- ventions or discoveries, having endeavoured, in all cases, to fol- low the most approved precedents of mercantile experience. Fins BURY SavAREy Mai/ 1, 1801. ADVERTISEMENT TO THE SECOND EDITION. The typographical errors of the first edition of this work have been here carefully corrected, and new Examples of Shipping Accounts, Partnerships, and Averages, are added from real trans- actions ; and, to render the work still more worthy of the patro- nage with which it has been honoured, an Appendix is given on Exchanges, including the alterations lately made in those of Fmnce, Holland, and Italy. The object, however, of this Appendix is not merely to mo- dernize Exchanges : the Author has endeavoured to methodize and simplify the subject, so as to form an easy, practical^ and correct System, adapted both to the use of Schools and Count- ing-houses ; and, though he has consulted the most approved written authorities for the tables and other documents of Fo- reign Exchanges, he has not ventured to commit any of them to the press, without the previous inspection and approbation of experienced Merchants, or skilful Cambists of the different coun- tries respectively. Arbitration of Exchange is here explained, and the Principle investigated, whence Rules are deduced for negociating Bills to the best advantage. This important subject is illustrated by Ex- amples of Remittances and Returns, taken from actual and re- cent operations. October 1, 1802. INTRODUCTION: CONTAINING THE PRINCIPLES OF BOOK-KEEPING, BOtll BY- SINGLE AND DOUBLE ENTRY Definitions, Principles, Rules, and Examples, BOOK-KEEPING is a Branch of Science, which teaches to record Mercantile Transactions in a regular and systematic manner. A Merchant's Books sliould exhibit the true state of his affairs ; they shouki shew the particular success of each transaction, as well as the general result of the whole ; and should be so ar- ranged, as to afford a correct and ready information upon every subject for which they may be consulted. Books may be kept either by Single or Double Entry. Single Entry is chiefly used in Retail Business. It is the most simple and concise method of Book-keeping, but not the most perfect, being defective in some essential particulars. Double Entry is used in Wholesale and Mercantile Affairs, whence it is called Merchants Accounts. This method is uni- versally preferred in extensive commerce, being the most com- prehensive in its principles, and the most certain in its conclu- sions. In order to understand the principles of Double Entry, some previous knowledge of Single Entry will be useful, as affording the most obvious and simple illustration of the nature of Debtor and Creditor, and of the application of those terms in the Ledger A SINGLE ENTRY, Single Entry chiefly records transactions on Credit, and for this purpose, two books are required^ called the Day Book and the Ledger. The Day Book begins with an account of the owner's proi perty, debts, &c. ; then follows a detail of the occurrences trade, set down in the order of time in which they take place. The name of the Person or Customer is first written w^il the term Dr. or Cr. annexed, according as he becomes Debtor * Creditor by the transaction; and this niay be distinguished by thi following General Rule : The Person who receives is Dr, aitd the Person who gives or parts with any thing is'Qr. Thus, if I sell Goods on credit, I enter J. B. (the Buyer) JDr. to the GoodsS, specifying their quantity and value. If I buy Goods on credit, I enter C. D. (the Seller) Cr. by the Goods, specifying their quantity and value. By the same rule, if I pay money, the Person to whom I pay it is made Dr. to Cash, for the amount; and if I receive itioney, the Person from whom I receive it, is made Cr. by Cash, for the amount. And if Debts be contracted or discharged by any other means, the same rule is observed ; the Person who becomes indebted to me, is entered Dr. and the Pei*son to whom I become indebted, Cr. — Also, the Person whose Debt I discharge is made Dr. and he that discharges a debt due by me, is Cr. The Ledger collects together the dispersed Accounts of each Person in the Day Book, and places the Drs. and Crs. upon oppo- site pages of the same folio. The Person's name is written in large characters as a Title : on the left hand, or first page, he is styled Dr. and on the opposite, or right-hand page, Cr. On these pages the transactions are entered as they stand Drs. or Crs. in the Day Book. For instance, J. B. is debited for whatever he has bought of me ; and on the opposite page, he is credited for the pa3-ments he has made ; in shorti whatever I have given him, is on the Dr. side ; and what he has given me on the Cr. ; and the difference between the Dr» and Cr» sides, is called t\\e Bahnce. A SftORT SPECIMEN OF SilNGLE ENTRY JANUARY 1, 1802. Suppose John Smith owes me lOOl. which b my sole property ,• or the net of my estate ; and suppose, on the 2d of Januaryi I buy of him SO yards of cloth, at 15s. per yard ; on the Sd^ 1 sell James Taylor, on credit, 60 yards of the said cloth at 18s. 4d. per yard ; and on the 4th, James Taylor pays me in part 401. Required the Day Book and Ledger of the foregoing transactions, according to Single Entry, and also the Prolit or Loss. DAY BOOK. Folio of I,edgcr 4. 4. Jan. 1, 1S0«- John Smith, Dr. To Balance from Ledger A. . 2. John Smith, Cr. By Cloth for 80 yards, at 15s. per j^ard. . 3. James Taylor, Dr, To Cloth for 6'0 yards, at 18s. 4d. per yard -4 James Taylor, Cr. By Cash received in part. £. s. 100 60 55 40 To post the foregoing Accounts into the Ledger. The Ledger heing ruled in folio form, according to the follow- ing specimen, with the left sfde for Dr. and the right side for Cr.. also a margin for the date, and near the Money Columns, one for reference to the Day Book, proceed as follows : Open an account for John Smith, and debit him, on the left hand page, for lOOL : and for the 2d day's transaction> credit him for 601. on the opposite page. For the 3d day, open an account for James Taylor, debiting him for 551. and for the 4th day, credit him for 401. When every transaction is thus posted, each account is balanced, by subtracting the less sum or side from the greater, and then putting the difference or balance under the smaller side, by which both sums are made equal. 4 LEDGER BY (4) Jan. 1. John Smith Dr, To Account from Ledger A. ... H 3 £. 100 (I. M Jan.3. James Taylor Dr. To Cloth for 60 yards, at 18s. 4d. per yard 3 55 M By the above Ledger it appears that the balances are in my favour ; and if these be added to the cash I have in hand, and the value of the goods unsold, the sum is the Net of my Estate; wliich compared with my original Stock shews my Profit or Loss. Thus it appears that John Smith owes me 40 James Taylor owes me 15 I have in Cash 40 1 have unsold 50 yards of Cloth, at 1 , . i5s, per yard, (the prime cost) / ^ 1 10 The net of my estate • 100 Stock beginning. c£. 10 Gain. Hence, I have cleared lOl. by the sale of 60 yards of cloth at a profitof3s. 4d. per yard. REMARKS ON SINGLE ENTRY. By Single Entry I cannot tell what goods are unsold, or my |5rofits or losses by my books oply, except when the transactions are but;few,.as in the foregoing examples. For as the Ledger here contains only the Accounts of persons dealing on credit, it affords no other knowledge to the owner, than what debts are due to him, and what he owes. (4) SINGLE ENTRY. Co NTH A. Cr. By Cloth for 80 yards, at 15s. per yard 3 00 By Balance 40 Contra. Ci\ By Ciisli received in part 6 40 O By Balance lo| O 100 01 o a 40 15 \ Ob But if he wish to know what goods are undisposed of, and what he has gained or lost hy the whole, or any part of his dealings, he cannot obtain this knowledge by Single Entry without taking Stock ; that is, he must weigh or measure what goods he has un- sold ; and their value, added to the cash in hand, and the Balance of Debts, will shew the Net of his Estate, and this compared with his original stock, will shew his Profit or Loss. Hence Book-keeping, by Single Entry, is essentially defective as it affords no method of ascertaining the state of a Merchant's affairs, without taking stock ; a task which is both laborious and liable to error, and which at best affords no adequate means of preventing embezzlement or detecting fraud ; but these objects are attained by Doul)le Entry, perhaps as effectually as hvman ingenuity can devise, DOUBLE ENTRY. In Double Entry, three principal boolvs are required; the Waste Book, Journal, and Ledger, The WASTE BOOK gives a regular detail of the transaction^^ of business, set dowai in the order of time in which they take place, and stated in a clear, simple, and circumstantial manner. The JOURNAL records the same transactions as the Waste Book, but they are differently expressed ; for here the Drs. and Cts. of the various accounts are ascertaiued, in order to transfer them with more ease to the Ledger. The manner of ascertaining the Dr. and G*. of each transaction here is the same, in effect, as in Single Entry, (Page 2) ; but in Double Entry, Things, as well as Persons, are made Drs, and Crs. ; and one Thi?ig or Person is made Dr. to another Thing Person. Thus, if I sell Cloth to J. B. on credit, I enter it in Journal, J. B. Dr. to Cloth. If I buy Cloth of C. D. on credit, I journalize it. Cloth Dr. to C. D.; and if I buy or sell for ready money, or barter one kind of goods for another, the follo\Ying Ge- neral Rule must be observ^ed : fVhat I receive is Dr. to xchat I give or part with. For instance, if I buy cloth for ready money, the Journal entry is Cloth Dr. to Cash, and if I sell it for ready money. Cash Dr, to Cloth; always specifying the quantity, price, and amount. When two or more persons or thmgs are included in the same account, they are expressed by the term Sundries or Sundry Ac- counts ; thus if I sell Cloth for part money, and the rest on credit, I journalise it. Sundries Drs. to Cloth ; and then specify the particulars. The following Rules for distinguishing Dr. and Cr. will apply in all cases. The Person to whom, or for whose Account I pay, or furnish the Means of Payment — is Debtor, The Person from whom, or for whose Account, I beceive, or who furnishes me with the Means of Payment — is Cre- ditor. Eveiy THING which coines into my Possession, or under my Direction — is Debtor. Every thing which passes out of my Possesion, or from under MY Direction — is Creditor.* • The word Idoc is sometimes used to assist the memory as being composed of the initials of the Rule— /«^. of each, on the same prin- ciple as in Single Entry; but here accounts are opened for goods as well as for persons, and every account is entered twice, whence this method is called Double Entry. The Accounts of the Ledger are distinguished into three kinds. Personal^ Ileal, and Fictilioiis, Personal Accounts are the same in Double as in Single Entry, and every person is debited or credited^as he stands Dr. or Cr. in the Journal*. Hence every Personal Account, suppose that of J. B. contains on the Dr. side all Items or Articles, by which he becomes in- debted to me, and on the Ct. side all Items or Articles, by which I become indebted to him. Real Accounts are those opened for Merchandize, or any other species of property, such as Cash, Bills, Ships, Houses, &c. Here, as in all other Accounts, each transaction is entered on the Dr, or Cr, side, as it stands in the Journal. Thus, goods bought are entered on the Dr. side ; and when these or any part of them are sold, they are entered on the C>. side ; by w^hich the quantity on hand, and the profit or loss on each article may be, at any time, ascertained. Fictitious Accounts are those of Stock, and Profit and Loss. Stock is a term used to represent the name of the merchant or o^vner of the books. On the Dr. side is entered the amount of the debts which he owed when the books were opened ; and on the Cr. the amount of the cash, goods, debts, and any other property tlien belongmg to him. The difference between the Dr. and Cr. sides shews his Net Stock, at that time. Profit and Loss is a general term used for either Gain or Loss, such as may arise from trade, interest, commission, &c. On the Dr. side are entered all transactions of Losses ; and on the Cr. side those of Gain — the difference shew^s the Net Gain or Loss. * In every account, there raust be a debit and a credit side ; and though the latter ^s not expressed in the Journal, it is understood to follow the word To', or, Cr. may be read for To. Thiw, if the Journal statement be Clath Dr. to A. B. read Cloth Dr. Cr. A. B. The creditor may be also known by reversuig the statement } for \{ Cloth be Dr. to A. B. then \s A.B, Cr, ly Cloth. A SHOUT EXAMPLE OF DOUBLE ENTRY. IVJSTE BOOK. (Set I.) V V London, Jan. 1, 1802. >/* ^ John Smith owes me, as per old Account hi Ledger A x -JaxN.9. Bought of John Smith, SO yards of Cloth, at 15s. per vard, on account — ^. 3. Sold James Taylor on credit, 60 yards of Cloth, at 18s. 4d. per yard Received of James Taylor, in part . ., £. i 100 >J 60 do 40 JOURNAL. (Set L) ToTio of 10 10 10 10 London, Jan, 1, 1802. — John Smith Dr. to Stock, £\0(n For Balance of old Account , o^ Cloth Dr. to John Smith, £60 For 80 yards, bought at 15s. per yard 3. _ James Tajflor Dr. to Cloth, £65 For 60 yards, at ISs. 4d. per yard — : 4. Cash Dr. to James Tay/or, £40 Received of him on account £. s. d. 100 60 55 40 * The above short lines or dashes in the Margin of the Wa^te Book, are intended to shew that each Account has been journalised; and ihey are sometimes made upon an examination, which is called Pointi/tg the Books. + Those short Entries of the Sum arc made in the old Systems of Book-keeping, but they ate mostly rejecied in Practice, and are therefore omitted in the subseqiicnc part of this work. In some Counting-houses, however, two money colums are used in the Journal, for keeping the Dr. and Cr. sums separate. 9 RULES FOR POSTING THE JOURNAL INTO THE LEDGER. The Ledger being ruled with the Dr. side to the left, and the CV. side to the right, (as before described) let there be a sjpace allotted to the left of each page, for the day of the month, and to le right, for the page of the Journal from whence each account taken.* The Accounts are mostly opened in the Ledger, according to file order in which they stand in the Journal; tliis is not, how- ever, essential to the truth of the work, but it is the most regular method, and the most clear to learners. The Stock Jccount stands first, and, like all other accounts, is debited or credited as Journalised. Here Stock is Cr. by John Smith; then, for the Second Entry, John Smith is Dr. to Stock, for every Dr, must have a Cr. and every Cr. a Dr.t By the same rule the other Accounts are entered twice in the Ledger ; first, in the direct way, las they stand in the Journal, and then reversed. Thus, the second day's account is posted. Cloth Dr. to John Smithy and then John Smith Cr. by Cloth. In the same manner the third and fourth day's Accounts are posted; James Taylor is debited to doth, aiud Cloth credited by James Taylor; Cash is next made Dr. to James Taylor, and James Taylor Cr. by Cash. Here it may be observed that, when an Account is once opened in the Ledger, every following transaction which concerns it, must be brought back, and entered there on the proper side, as an account is never opened twicej though it may be transferred for want of room. * Sometimes aaother column is ruled to mark that Folio of the Ledger, in which the second Entry of the same Account is made; in the following short specimens this Column is omitted, but in the Third Set of Books it is adopted. By inserting the page of each Journal account in its correspondng part of the Ledger, and the page of each Ledger account in that part of the Journal from whence it was taken, these two Books serve each as an Index to the other; besides which, there is, mostly, an Alpha- betical Index prefixed to the Ledger, which gives a lefcrence to every account. t The word to is placed before each Item on the Dr. side of the Ledger, and the word BY before each item on the Cr. side, agreeable to the manner in which thestt prepositions arc expressed or understood in the Journal, 10 LEDGER (Set I.) Stock Dr. To Balance for the Net of my Estate r> 8 8 8 8 lie s. d. Jan. 1 John Smith Dr. To Stock -' 100 Jan. 2. Cloth Dr. To John Smith, 80 yards, at 15s. ^ yard. . - To Profit and Loss GO 10 70 55 Jan. 3. James Taylor Dr, To Cloth for 60 yards, at 18s. 4d. ^ yard. . Jan. 4. Ca^h Dr, To James Taylor 40 Profit and Loss Dr. To Stock gained 10 Balance Dr. To John Smith 40 15 15 40 To Cloth To James Tav'lor ..-. «.- To Cash 1 - 110 11 LEDGER. (Set I.) Per Contra, Cr. i?; Jan. 1. By John Smith By Profit and Loss. Jan. 2. Jan. 3. Jan. 4. Per Contra, By Cloth By Balance Cr. Per Contra, Cr. By James Taylor, 60 yards, at 18s. 4d.. . By Balance unsold, 20 yards, at 15s 80 Per Contra, By Cash By Balance Cr. Per Contra, By Balance Cr. Per Contra, By Cloth Cr, Per Contra, Cr, By Stock for the Net of my Estate 100 10 110 60 40 100 55 15 70 40 15 . 55 40 10 110 12 TO MAKE A TRIAL BALANCE. When every Account is posted twice from the Journal into the Ledger, and on opposite or contrary sides, it is evident that all the sums on the Dr. side will equal all those on th6 Cr. side. This Trial, or Check, is generally made on a separate paper, and it may be performed every Day, Month, or Year, according ,^^ to the extent of the business. The Titles of the Ledger Accounts ' ' are written under each other with Dr. to the left, and Cr. to the right. Annexed to each, on its proper side, is set down the sum of every Dr. and Cr. ; and both sides will agree if the work be right ; as in the following example, from the preceding Ledger. TRUL BALANCE. Dr. Cr, £. * d. 100 00 55 40 955 Stock . . I . . - John Smith- . Cloth .- James Taylor Cash ' £. 5. dA looj o; 1 60 55 40 255 ^ TO MAKE THE GENERAL BALANCE, AND CLOSE THE LEDGER. The Journal being all correctly posted, an Account must be opened for Profit and LosSy and another for Balance.* These two Accounts, with that of Stock, are not to be closed until the others are balanced. Proceed, therefore, to the second Account, where the difference between the Dr. and Cr. sides appears to be <£40 ; set this sum under the smaller side, making both equal. * These, like the Trial Balance, are generally first made on loose sheets of pa- per, called the Balance and Profit and Loss sheets. And here it nnay he observed that though the Trial Balance proves the posting to be correct, a further proof be- comes necessary for the closing part, which is shewn in p. 13 & 14. 13 This Balance or difference being on tlie Cr, side, John Smith's Account is therefore credited By Balance, and on the Balance sheet it is entered on the Dr. side : for if John Smith be Cr. by Balance, tlien is Balance Dr. to John Smith. By this simple method all Personal Accoimts are closed ; but m Real Accounts a double operation is necessary, when any of the goods remain unsold, as these must be first balanced. Thus, in the Cloth Account, the quantities on the Dr, and O*. sides must be compared, and their diiference set down under the > smaller quantity, making both sides equal. Here the difference is 20 yards, which, at first Cost, is worth £15 ; this sum must be entered on the Cr. side of the Cloth Ac- count, and then on the Dr. side of the Balance Account^ thn& making Cloth Cr. By Balance and Balance Dr. to Cloth. When the Goods on the Dr. and Cr. sides are balanced, the Money columns must be next compared, and their difference shews the Profit or Loss upon the article. In the Cloth Account the Cr. .side is o£lO more than the Dr\ hence Cloth is made Dr, to Profit and 'Loss for that sum ; and Profit and Loss Cr. by Cloth for the same. James Taylor's Account and the Account of Cash being next balanced, proceed to prove the work. THE PROOF OF BOOK-KEEPING. The Accounts being all balanced, except those of Stock, Profit and Loss, and Balance, let the Profit and Loss Account be first closed. Here Profit and L^oss is I>. to Stock for c£lO gained, and therefore Stock is made Cr. by the same. The Stock Account must be next closed, where the Balance appears to be o£^l 10. Hence Stock is made Dr. to Balance for this sum, and the Balance Account must therefore be made Cr. by Stock for the same. Now if the work be right, both sides of tli^ Balance Account will be equal ; Avhich is the Proof of Book-keeping, and which Proof necessarily arises from Double Entry. The reason of this proof will also appear obvious from the fol- Ipwing considerations : 14 The Balance Account contains on the Dr, side what Goods I have unsold, what Cash I have in hand, and what Debts are due to rae : And on the Cr. side it contains what Debts I owe. Therefore the difference between the Dr. and Cr. side of the Balance Ac- count is the Net of my Estate. Now there is another method of finding the Net of my Estate, which is, by adding my profits or subtracting my Losses from my original Stock; and when this sum is put on the Cr. side of the Balance iVccount, it will make both sides equal, if the Books be correct*. Hence the Proof of Book-keeping may be considered as con- sisting of two methods of ascertaining my Property, and these must always agree if the work be right. If they difler, the Books are certainly wrong. The converse of this rule, however, does not hold ; for the Ba- lance Account may close when the Work is wrong — a false statement, for instance, continued on both sides of the Ledger, will not prevent the proof ; but there is scarcely a pfobability that such an Error could be continued unobserved ; and even intenti- onal mis-statements may be prevented by a Check Ledger ; that is, by having two Ledgers kept by different persons. The gene- ral practice is to examine the Books frecjuently, which is done by one person reading the Journal, while another inspects the Ledger in order to see that every Account has been regularly posted by Double Entrj*. It also promotes accuracy, to have the Books re- gularly written up, so as to make the Journal keep pace with the Waste Book and the Ledger with the Journal. * This principle or proof of Book-keeping by Double Entry may be thus mathc- raatically demonstrated : Let S zz the net Stock at opening tlie Books. p ZZ the Gain or Loss at closing the Books. Dm the Dr. side of the Balance Account. C zi the Cr. side of the Balance Account. Then S -jk p ri N zz the net Stock at closing the Books, and D — C zz the net Stock at closing the Books. Hence (per Ax. 1 Euclid.) D — C zz N, and therefore D z= N -f- C which was to be proved ; that is, the Dr. side of the Balance Account should equal the Cr. side, ad- «!ed the net Stock. THE SECOND SET OF BOOKS, CONTAININ'G FURTHER EXAMPLES OF THE ITALIAN METHOD OF BOOK-KEEPING BY DOUBLE ENTRY. WASTE BOOK. (Set IL) 0) LONDONy January 1, 1802, Inventory o/ Me Money , Goods , and Debts belonging to me A. B. and also of what I owe. £. s. d I liave in Ready Money 800 Bills Receivable, viz. Edward') Winter, No. 107, due the \st > 350 of March J Sugar 10 Hhds. each 12 Cwt. 1 ^^^ ^ ^ at £^. 15s. ^ Cwt J Henry Holmes owes me 250 o I owe as follows: To John Hindon " 204 10 Charles Chambers 12510 Bills payable, for my Acceptance \ .^^ ^ ^ orr.Trub7fsBi[\,dyieFeb.^Sj^^^ Jan o. Bought for Ready Money y 60 Pieces of Linen, each 25 yards, at 3s. 4d. ^ yard / / / £. 1730 730 250 d. V V V V V V V V V V V WASTE BOOK. (Set II.) 3. Sold for Ready Money, 4 Hhds. of Sugar, each 12 Cwt. at £3, 3s. ^ Cwt 4 Bought of IJenry Holmes * 19 Pieces of Cloth, each 25 yards, at 13s. 4d. ^ yard- . 0\ "- Sold John Hindon 25 Pieces of Linen, at £5. ^ Piece 7. ■ Sold George liamsay 9 Pieces of Cloth, each 25 yards, at 1 ds. ^ yard Received Ready Mo Jiey in pixn 90 The rest to be paid in Two Months 90 8. Bought of James Johnson, 80 Pieces of Cali- co, each 23 yards, at 2s. 9d. ^ yard, For which I pay in Ready Money 100 The rest at '1 wo Months 153 ^ . ^ 9. . Sold John Jennings the following;' Goods : 10 Pieces of Linen at £b, 5s. 4^^1 >^ ,^ ^ Piece I.r- '^ ^ One Hhd. of Sugar, at 37 16 Three Pieces of Cloth, 75 yards, \.q ^y r at 15s. OU ^ yard /''^ ^ " Received in part Cash 63 A Bill on Walton and Co. No.. - \ -q q q 375, due iliarc/i 3 j^ -^ . «-i 0. -^ Advanced to John Hindon on Account 11. Drawn upon George Rainsay for the Balance of his Account at Tico Months 1o O. ^ Received for the use of Henry Holmes, <£2,500 which 1 have remitted to him, deducting \ ^ Certt. for Commission - (2) £. s. 151 4 200 125 ISO 180 253 148 8 113 104 10 90 12 10 * When the Neune only is thus mentioned, it is understood that the Transaction is on account or on creditj but when the tiaae of Payment is stipulated, the gene- lal I'ractice is to uive a Bill. O) WASTE BOOK. (Set II.) 17 I V V V V V V -Jan. 14. Bought of William Bell the following Goods, to pay at two Months, viz. £. s, d. 2 Puncheons of Rum at 501. each 100 12 Hhds. British SpintSt at 45l.\ . .^ ^ ^ ^Hhd S 1 Pipe of Por^ff me 75 4/ Shipped the above Goods onboard the Sally, Henry Hunter, Master, for Hamburgh ^ for the Account and Risk of Thomas Martin, Merchant there, as ^ Invoice rendered Amount of Goods 715 Charges of Shipping, &c 23 10 Commission, at Sf ^ Cent 18 9 3 15. Received a Legacy of. . 1 ()\ _ £. 715 Paid William Bell his Debt 715 For which he allowed me two 1 fs l Q « Months Discount, 2Lt 5 ^Centj ^ ^j ^ 17 Sold for Ready Money, 30 Pieces o^ Calico at 31. 12s. <^ Piece 20. Sold James Johnson^ 3 Hhds. oi Sugar, ^t 36 Cwt. at 31. 8s. 4d. ^ Cwt ^^ V Lost a Bank Note of. i 23. Received ^jthe Mermaid y from Hamburgh y 4 Pipes of Olive Oil, to sell for the Account of Thomas Martin. Sold Jo^w/i?w(;?ow2Pipesofthe\ rq n n said Olive Oil, to pay at 2 Months J ^^ "^ "^ Sold the other 2 Pipes for Ready 1 ^a ir^ rx kMoney \J ^^ ^^ ^ Commission on ditto, at 2i^Cew^ 3 6 3 Charges paid at Landing 22 10 I owe Thomas Martin for Net Proceeds"! of the Olive Oil, as ^ Account Sales, ren- V dered this day ,,., ,.,..,..**.^-J 756 100 709 108 123 20 132 25 s. 19 3 10 10 16 106 13 IS AVASTE BOOK. (Set. II.) (3) V V V V V V V V Sold Charles Chambers 30 Pieces of Calico, at 41. <^ Piece 05. • Sold for Ready Money 20 Pieces of Calico. at 41. ^ Piece i Sold James Johnson 20 Pieces of Linen ^ 500 yards, at 4s. ^ yard 20.-- < Received by this Day's Post from Ham burgh ya Bill of Exchange on Raymond ^ Co. for the Account of Thomas Martin, due March 4. 30. 1/ V -24. Sold Charles Chambers 1 Hhd. Sugar, Wt. 1 2 Cwt. at 31. 3s. 4d. ^^ Cwt 27.- Discounted E. Winter*?, Bill. Discount allowed by me . —30—. - 350 1 9 2 I have taken up my Bill dravi^n in favour of r. T)^uby, of 400 Discount allowed by him 1 1() 8 31.— Paid sundry Charges thisMonth for Rent,&c, Feb. 2. Discounted, at the Bank, Thomas Martin's Bill, due March the 4th, £965 10 Discount for 34 Days, @b^CL 4 10 Boug-ht of Thomas Fairman, of Manches- ter, the following Goods : No. 1. 56 Pieces of Dimities, \^ ^g^- each 56 yds. @ Is. Sd.f yd. f ^"^^ No. 2. 35 Piece.s ofMuslinets,i each 55 yds. @ Is. 6d. ^ yd. J 6 8 £iU 7 6 No. 3. 28 Pieces of Quiltings,1^,»,, each 35 yds. @ 3s. 6d. ^ yd. 5. 10 £. 120 38 80 100 348 96b 308 961 Received from Manchester Sundry Goods to sell for account of Tliomas Fairman, amount ing as ^ Bill of Parcels to For which 1 charge him 2| ^ Cent Com- mission .r .; 1>. ' \/ Bought of James Johnson, 10 Bags of Cot- ton, ainounting as ^ Brokt-r's Bill, to 577 500 12 354 s. d. 10 10 3 10 10 10 10 (3) WASTE BOOK. (Set II.) 19 V V V ■-/■ Sent by the Canal to Manchester, the above Cotton, directed to Thomas Fairman, for his Account, amounting as follows : M ercha7idize 354 10 Cash for Charges 4 10 Commission at 2 <||>' Cent. 7 3 ■9- James Johnson has drawn on me at Two Months, in favour of Charles Maniniy for the balance of his Account, being 11 . / V Shipped on board tlie Triton^ Thigh Evans, Master, for Uamhurgii, sundry Goods re- ceived the 5th from Thomas Fairman, and consi^med to Thoinas Martin, ior his Account and Risk. Merchandize, as ^ B. P.* 500 , Charges 3 10 Commission, at 2 i '^ Cent. 12 11 9 19 IZ Sold John Jennings the following Manchester Goods : 20 Pieces of Dimities, 1120 Yards, at 2s. ^ Yard 12 ditto iV/M5^//7?e^^ 660 Yards. \ at Is. iOd. ^Yard J 12 ditto Quiltinos, 420 Yards, 1 at 4s. ^ Yard / 14 |ll2 GO 10 82 ^ Sold for Ready Money the following Man- chester Goods: 36 Pieces of Dimities, 2010 Yards, at 2s. ^ Yard 23 ditto Muslinetts, 12G5 Yards, at Is. lOd. '^ Yard 16 ditto Qniitings, 560Yards,\T, at4s.c^Yard / ii 15 201 12 115 19 2 2 Bought on the Quays, for Read4/'\ Moneys seven Pipes of Port, V514 10 at 70 guineas ^ Pipe J iPaid Cartage, &c...-: 2 14 B. P. sJgaifying Bill of Farcers. 266 284 516 254 429 51? s. 3 10 1 10 11 4 20 WASTE BOOK. (Set II.) (3) V V V VIZ. Sold Scarlet Cloth, for Ready Money 3 Pieces superfine, each 40 yds. \ .^^ /^ /^ at iLSs.VYaVd ...|l^^ ^ ^ 3 do. second, at 17s. 6d. ^ Yard 105 3 do. Cloakings, at 1 Is. (5d. ^ Yd. 69 1/ V^ V V V -17- Bought of Henry Smith, of Stroud, three Trusses of Scarlet Cloth) contamhig as fol- lows : N^o. 1, six Pieces superfine each No 40 yards, ^,.at 11.' 4s. ^ Yard f 288 six ditto second each 40 1 yards, I, at 15s. ^ Yard / Mo. 3, six ditto Cloakings eaclil , , . 40 yards, i, at 9s. 6d.^Yard J ^^* ISO -18— Bought for Ready Money ^ three Bags of 'I Cochineal each 150 lb. at ll. 4s. per lb. - J Which I have sent Henry Smith, charging 1 ^\^ Cent. Commission J 21 .OO- John Hindon being declared insolvent, and his Creditors having agreed to a composi- tion of 15s. in the pound, I have this day received my dividend on his debt of 931. amounting to . —24- Draw^n on Charles Chambers at one month, for the Balance of his Account, being 07 Sold Henry Rivington five Pipes of Port Wine, at 80 guineas ^ Pipe, for which he has given me a Bill on' William Read, due May the Ist, of 3001. and his own accep- tance for the remainder at three months. . 28 Accepted two Bills of 9001. each, drawn by Thomas Fairman, one at two months, and the other at three months 28 Paid sundry expences this month for Rent, Taxes, House Expences, ^c. not charged to any other account t. * £■ s. 6S^ 540 13 10 342 69 15 32 10 420 400 48 12 21 Remarks on the foregoing JVASTE BOOK, zdth Dt- rectians for Journalising some particular Accounts, The Inventory of Goods, &c. belongii^ to me, is Journalised ; Sundries Drs, to Stock, and the particulars then specified : Stock is next made Dr. to Sundries for what I owe. The transactions which follow require no explanation until the 9th, where sundry Goods are sold to John Jennings, and Sundries received in lieu of them. Accounts of this kind are best Jour- nalised by two separate statements ; fii-st, debiting the Buyer to Sundries, and secondly, crediting him by Sundries. On the nth, I receive a Bill of George Ramsay, for which I give him credit. Thus, Bills Receivable arc (like any other kind of Property) made jpr. to the Person from whom they have been received. In like manner. Bills Payable are made Cr. by the Peraon to whom I pay them, or for whose accomit I accept them, and consequently he is made Dr. to Bills Payable. When I buy Goods upon Commission,! debit my employer for Merchandize, Charges, Commission, &c. all of which are in- cluded in tlie Term Sundries. Such is the Account of Thomas Martin, supposed to be taken from an Invoice Book. When Goods are sold upon Commission, the Account may br stated in various Terms, such as Sales ^ the Ship (mentioning her name) Dr. to Sundries^ viz. to CJiargeSf Commission, and to the Consigner of the Goods for the net amount, called ^et Proceeds ; and the Person who buys the said Goods, if on credit, is debited to Account Sales, as in the transactions of the 23d. The Accounts of Commission, Interest, Legacy, Loss of Mo- ney, Charges for Rent, &c. might be all comprehended in the Profit and Loss Account : the two first are here made separate Accounts, v;hich are finally cairied to Profit and Loss in the Ledger. A mor^ particular description of Bills, Invoices, Account Sales, &:c. will be given in the Third Set of Books. c2 2l2 J O U R N A Z. (Set. II.) LONDONy Januart/ 1, 1804. Sundries Drs * to Stock £, s. .»•.••••*. £, 582 553 10 342 93 32 10 420 400 4« 12 28 ^BMARKS THE FOLLOWING LEDGER. The Ledger opens (as desei:ibed Page 9) by making Stock Dr. for all Debts which the Merchant or Owner of the Books owes, and Ct, by his Effects, and the Debts due to him. Accounts are then opened for Casht and Bills Receivable ^ also for each, Article of Goods, and each person indebted to the Mer- chant, each, of which is made Br. to Stock. Accounts are next opened for his Creditors, who are each credited by Stock. Bills Receivable are (as journalised) debited to Stock, or to the person from whom they have been received after opening the Books, and credited by Cash, when paid. Bills Payable are debited to Cash when paid, and credited by Stock, or by the Persons on whose Account they have been ac- cepted after opening the Books. Commission is credited by Cash, or by the Person who owes for Commission, and debited to Frojit and Loss, Interest is debited to what is paid or owing, and credited by what is received or what is due, and the difference, like that of Com- mission, is carried to its proper side of the Profit and Loss Ac^ count. Merchandize is here a general term for Goods purchased on Commission, and charged at the Prime Cost, whence neither Loss or Gain ensues, and the Account balances itself. The Account Sales also balances itself, being supposed the ge- neral result of an Account Sales Book, where the particuJars are specified. INDEX; OR. ALPHABETICAL LIST OF THE ACCOUNTS IN THB LEDGEB. A. Fol. G. Fol. N. B. Fol. Bell, William. -- 4 Bills Receivable. 1 Bills Payable 2 Balance 7 H. Fo/. Hindon,John--. 2 Holmes, Henry - 2 O. Fol. C. Fol- Calico 3 Cash 1 Chambers,Charles 2 Cloth 3 Commission 4 I. Fol. Jennings, John-- 4 Interest 5 Johnson, James - 4 P. Profit and Loss.- h Port Wine D. Fol. K. Fol. Fol. £. Fol. L. Fol. Linen 3 R. Ramsay, George. 3 F. Fol. Fairman, Thomas tS M. Fol. Martin, Thomas. 5 Merchandize 4 Manchester Goods 6 S. Sales<^Mermaid 5 Stock 1 Sugar - 2 Scarlet Cloth- -. 6 Smith, Henry... 6 so LEDGER. (Set II.) (0 1804 Jan, Feb. # 1 28 1 3 7 9 13 15 17 T3 27 27 2 14 21 22 1 9 11 30 24 27 Stock, To Sundries Z)r. 7 1 2 3 4 4 5 3 5 3 1 1 6 2 1 4 3 o 2 6 730 1422 s. rr 4 d. To Balance for the N^ of my Estate- . . 6 2152 7 6 Jan. Cash, To Stock Br. 800 151 00 63 12 100 108 64 80 348 4 10 10 10 To Su2ar .....-...-.._......... To C/otk To Jolm Jennmgs . . --- To CoMmissiou ...... ............... ' To Profit and Loss .......... To Calico .................... To Sales ^ the Mermaid. .- ..... To Calico . ... ............ n To Bills Receivable ........... .. 10 F^b. To jBills lieceivable .............. 061 42011 3421 To Manchester Goods ._...... 2 To Scarlet Cloth To John Hindon .... ... ...... m 15 3620 1 330 50 00 Bills Receivable, To Stock Dr. To John Jennings. .... ... To Georsre Ramsay To Thomas Martin 065 10 Feb. To Charles Chambers. -. ., 3210 To Port Wine 420 1008 * This column of the dates is here deemed a suffi- cient reference to the Journal ; but in the third Set of Books, there is another colujnn for this purpobe in ihc Ledger. - (1) LEDGER. (Set II.) 31 1804 Jan. Feb. ,28 I Feb, 8 10 14 Id 22 23 29 30 7 11 15 IS 28 28 Contra, By Stmdries By Profit and Loss. Cu Jan. Feb. 20 2 9S Contra, B}'' Linen By Calico By John Hindoji By Thomas Martin By IVillam Bell By Profit and Loss By Sales ^ the Mermaid By Bills Payable .. By Profit and Loss By Thomas Fairman By Thomas Martin By Port IVine By Henry Smith By Profit and Loss , By Balance , Cr, Contra, Cr, By Sundries By Simdries. By Balance • This Column shews the Folio where the Second Entry of each Account is made in tlie Ledj^er ; but for the word Sundries there can he no referring Figure as the difFereiit Accounts may occupy several Folios. This inconvenience must be supplied bv turning to the Journal, where references to the Ledger are given. 1730 422 7 2152 250 100 J 04 10 23|10 709 2()j 2910 398 4 3 517 540 48 806 3620 350 965 592 1908 O o o o 10 o 4 6^ O O O <) O 4 52 LEDGER. (Set II.) (2) 1804 Jan. Feb. Jan. 6 10 23 24 25 Feb. 30 28 Sugar, Br. To Stock 10 Hhds. 120 Cwt. 2l. 15s. ^ Cwt To Profit and Loss. .. Henry Holmes, To Stock,. ^ John Hindon, To Linen To Cash To Sales ^ the Mermaid. Charles Chambers, To Calico. To Sugar. Bills Payable, To Sundries To Balance. Br. Br. Br. Br. £. 330 5b 383 1 250 O 125 104 68 297 10 120 38 158 400 684 1084 (2) LEDGER. (Set II.) S3 1804 Jan, ^ o 20 25 28 Jan. Feb. Jan. Feb. 1 22 Jan. Feb. 1 24 Jan. Feb. 1 9 28 Contra By Ca5/i 4 Hhds. 48 Cwt. By John Jennings 1 Hhd. 12 By J. Johnson 3 Hhd^. 3(5 By C. Chambers . 1 Hlid. 12 Byj5a/a«ce 1 Hhd. 12 Cr. 10 120 Contra, By Cloih . . . By Balance. Contra, By Stock., . By Simdries. Contra, By Stock By Bills Receivable Contra, By Stock By Jam^s Johnson . . By Thomas Fairman. Cr. Cr, Cr, Cr. 151 37 123 38 33 383 s. 4 16 200 50 250 204 93 297 125 32 158 400 284 400 1084 10 10 10 10 10 10 M LEDGER. (Set II.) (5) 1804 Jan. Feb. LlN£N, Dr. To Cash for 60 Ps. each 25 yards at 3s. 4d. cf^yard To Profit and Loss Jan. Feb. Jan. A\ d. Cloth Dr. To Henry Holmes, 19 Pieces, each 25 Yards, at 13s. 4d. <^ Yd.. To Frojit and Loss George Ramsay, ToClotk Dr, Feb. 8 28 Calico, Dr, 250 48 298 To Sundries, SO Pieces, each 23 Yards, at 2s.9d.*^Yd - To Prqfii and Loss - 200 38 238 90 253 55 308 (3) LEDGER. (Set II.) 35 1804 Jan. 6 9 9S Contra, Cr. U 17 24 By John H'mdon, 25 Pjeces, at 51.^ Piece B\^ John Jennings, 10 Pieces, at 51. 5s. ^ Piece Bv James Johnson, 20 Pieces, 500 Yards, at '4s. g < VValter and flume . .30 610 15 3 ' ^ Thomas Pembroke -.30 105 11 6 Henry Barlow, Feb. 4 410 l^Paririck Hamilton -.11 126 213^ 219 214 218 I 2 215 ( '^ 217J Amount of Balances in my favor 29356 7 8 Amount of Balances against me 9927 10 1 1 The Net of my Estate*, * It is not necessary that the whole of a Merchant's Pro- perty or Estate should appeor in his Books; it is enough that they contain the Capital which he employs in tiade. 820 5 716 9 241 10 371 19 572 18 421 11 205 2 174 11 268 11 416 13 506 173 10 3J6 4 516 19 721 18 216 9 521 10 137 5 2608 4 9927 10 19428 16 11 5« WASTE BOOK. (Set III.) ■London, January 1, 1804.- Shipped on board the Neptune yUen.Marsom for Naples, Sugar for the Accoui-it ftf Vyilliam Pem- berton, as ^Invoice Book, Page 1, amounting to . 2. ^ , Accepted a Bill drawn on me by George Hol- ^nd, as ^ Bills Payable, No. 1 i : — 3. Received by this Day's Post a Bill from Charles LeCoin, of 2385 livres II sols, at Qol-d. ^ Ecu, as f Bills Receivable, No, 1 . 5. Paid Henry Barlbw's Bill, Nh^. 215, as ^ Cash Book, dated this Day > Received iJiscount for the same, 29 Days, at 3 <^Cm^. C. B ; 12. Shipped on board the Swatif Charles Mills, for Bilboa, sundry Goods for the Account of William Lamos, as <^ I. B. Page 2, amounting to Paid Charles Mills's Bill, No. 213, as ^ C.B. 15. Received the iVmount of Ramsay and Co's. Bill, No. 210, as ^C. B :.-.... Shipped on board the Betsey, Brown, for Leg- horn, Lead for the Account of Wilson & VanelH, as^ LB. Page 3 1(5. x^ccepted a Bill of Gibson and Carr, No. 2, B. P. 18. ^ Bought of Samuel Lightfoot, sundry Goods, amounting, as ^ Bills of Parcels, to ^_ lo. Received from William Chulmley, Two Bills, No. 2and3.B.R. Samuel Lightfoot has drawn upon me Two Bills No. 3 and 4. B. P.... , OQ. Arrived the Nancy, from Lisbon, on board of which are Ten Pipes of Port consigned to moiby Millman and Sen, to sell on their Account. S. B P 1 "^ -.-. • -- . 184 400 1 85 14 410 1 677 713 520 221 300 3050 582 1050 12 11 19 10 WASTE BOOK. (Set III.) 6! ■London, January 95, 1804, Received of William Lamos, Hiree Bills of Exchange, No. 4, 5, and 6', B. R Received Cash for Edward Malone's Bills, No. 424 and 235- C. B — Q6. Paid John Gibson s Bill, No. 214. C. E — 26\ Paid James Harrison's BUI, No. 219. C. B 27. Received from G. Seaford, for*Freiorht on board the Ship Charlotte, my Half Share. C. B 28. - Received from William Shepherd for the Pro- duce of Farm in Kent. C. B -29. Acc3epted Three Bills drawn by Smithson and Co. No. 5, 6, and 7. B. P 30. -> Paid for .Re;)a?>5 on board the Ship 67iar/o/#e,C,B. Paid Walter Hume's Bill, No. 216. C. B...-. Paid Thomas Pembroke's Bill, No. 21S. C. B.. - 31 Shipped on board the /ioyj'e, Stanley, for Jamaica, sundry Goods for sundiy Persons, as <^ I. B. p. 4 a 10. Received this Mpnth, Debentures for sundry Goods, amounting to Received Cash for Debentures this Month C. B. Paid sundry Charges this Month for House Ex- pences. C. B.,,. All Insurances this Month have been effected with the London Assurance Company, and are unpaid. 800 783 431 210 138 54 820 43 610 105 10 15 10 10 10 15 15 11 138 195 68 15 10 10 5-2 WASTE book:. (Set III.) London, February 1, 1804. — Received advice from Edward White to insure .£3500 on his Account for Goods ^ tlie Faithful, Sullivan, from Jamaica to London, which Insu- rance I have thus effected at Lloyd's : Nicholson and Hope have written. -c£1000 Smithson and Co 1000 Peter Bonham 1000 George Holland .« 500 at (^Guineas * ^ Cent, to return !{ ^ Cent, for Convoy and Arrives ^^0 Received from William Pemberton, Two Bills, No. 7, and 8. B. R | 920 Received Cash for William Chulmley's Bill,\ No. 3. C. B .., i 372 Received Cash, for Hamilton and Co's JBi//,' No. 141. C.B i 312 ^. Received advice from John Biddle, of Grenada,' that he has, according to niy Order, shipped oni board the Cumberland, Plunket, 50 Hhds. o^ Sugar, amounting, as "^ Invoice, to This Sugar I have ordered in company withPeter Bonham and George Holland, each 4- Share, and who allow me 2^ ^ Cent, as Managing Partner. Insured the above with the London Assurance Company, o^^lSOO at 24 Guineas ^ Cent .^ 13. _ Received from on board the Swan, from Leghorn, QPipes of Olive Oil, to sell for the Account of Wilson and Vanelli, S. B. p. 2. Sold Smithson and Co. Port Wine, S. B. p. 1.. _4. . 10 10 Sold Henry Chnton Port Wine. S. B. p. 1 Bought 2 Lottery Tickets in Shares. C. B Paid George Holland's Bill, No. 1. C. B.. 12()0 34 218 139 37 400 11 6 * Insurance Brokers debit their employers for Cui/teas, and credit the Underwriters for Founds. Thus they get 3 per Cent, on the Premium, besides 1 return of 12 per Cent^ from the Under writers; ouihe Annual BuUnce. 11 10 WASTE BOOK. (Set HI.) 53 ■LotidoJi, February 6, 1804. Received ^ the Dolphin, from Jamaica, Sugar, to sell on Account ^f VVinter and West. S. B. p. 3. Received ^ ditto, Cotton and Pimento, to sell for the Account of Edward White. S. B. page 4. -7 Accepted 4 Bills drarwn by Winter and West, No. 8 a II. B. P 8 . Sold Thomas Aveling 2 Vipes of Olive Oil. S. B. page 2 -9 Received Cash for William Chulmley's Bill, No. 2. C. B 11.- Paid Patrick Hamilton's Bill, No. 217. C. B.. Received from Panton and Abram, <^the Han- nnh, Cole, from Petersburgh, 42 Tons of Hemp for my Account, the whole amounting, as ^ Invoice, to 9637 Roubles, 10 Copecs, at 2s. 6d. ^ Rouble, V7\nd\ amounts to. . . . . . of 1204 12 9 Paid sundry Charges at landing. C.B. 1(5 11 3 -13.. Sold Edward Kirnpton 4 Pipes of Olive Oil, on Account of Wilson and Vauelli. S. B. pas"e 2. 1 4. r Said Smithson and Co. 12 Hhds. of Sugar, on Account of Winter and West, S. B. page 3 Accepted 2 Bills drawn by Peter Holmes, No. 12and 13. B, P Pteceived Cash for Weldon and Co.'s Bill, No. 153. C.B 1700 (55 210 126 Paid Gibrson and Carr's Billy No. 2. C. B.. . . . Accepted a Bill drawn by Gibson and Carr, No. 14. B. P.. 17 Received Bills from Hampton and Co. Ed- ward White, James Prime, Edmund Connor, and Richard Broadley, No. 9 a 13. B. R.. 18. Received a J)ivi(le?id at the Bank, Half Year's Intei^st on £4000, at 4 ^Jp' Cent, C. B.. 1221 132 478 605 162 300 210 1457 80 18 10 54 WASTE BOOK. (Set III.) London, February 19, 1804. Sold Home and Jones S3 Tons of Hemp, al c£34 10 ^ Ton, to pay at two Months 20. — Arrived the Cumberland, Phmket, from Gre- nada, with 50 Hhds. of Sugar, from John Biddle, v^'hich I ordered in Company with Peter Bonham and George Holland, amounting, as ^ Invoice, to -.-..1^260 11 6 Paid Duty, Freight, &c. C. B 823 5 6 - ) ^ 1138 10 21- My Lottery Tickets are drawn Blanks, except one ilalf Share, C. B ^ 22 Sold Peter Bonham 25 Bales of Cotton, Dolphin, S. B. page 4 23. Sold Goods to Ashford and Son, amounting as ^ Bill of Parcels, to ; 24. Received Cash for Weldon and Co.'s Bill, No. 261. C.B Paid Samuel Lightfoot's Bill, No. 3. C. B.... 25. Sold George Broker, Swgar (in Company) 50 Hhds. weighing, as ^ Account rendered, 607 cwt, 3 fjrs. 14: lb. a 80s. ^ cict 26, Sold Edward Taylor 50 Bags of Pimento, ^ the Dolphin, S. B. paae 4 Paid SmithsoM and Co. 's Bill, No. 5. C. B... 27.-' Paid Henry Stanton, C.B 174 11 3 Paid him 3 Months Interest, C. B.. - 2 3 7 Paid for Household Furniture, C. B. 28. Paid for Repairs of House at Richmond, C. B. Received Cash for Weldon and Co.'s Bill, No. 104, C.B .-- Paid sundry Charges this Month for House Ex- pences. C.B Paid I{e?it and Taxes, C, B. -.,.«-..-. -.«-- 2083 10 886 564 231 500 2431 223 237 176 130 42 216 57 105 17 14 10 10 4 10 14 10 5 9 12 4 ; 10 \ 6 : i WASTE BOOK. (Set III.) 55; -London, March], 1804. Said ^2000 Stock, a 79|- ^ Ct. Commission ^ Ct, C. B 3. . William Pemberton's Bill, No. 7, £3oO on John Day, is this Day returned ; 1 have thereifore noted it for Non-payment, and sent it back to William Pemberton, debiting him for the same, with Costs Paid Smithson and Co.'s Bill, No. 6 & 7. C. B. Received ^ the Marthaf from Grenada, Sngar and Cotton, to sell for the Account of John Bid die, S. B. page 5 and (y. Received the Amount of Charles Le Coin's Bill, No. 1. C.B 7. . Received a Letter from Charles Le Coin, in- closing Tico Bills, No. 14 & 15, B.R. amounting to c£2150, with Directions to honour JVJr. John Mor- ris's Bills on his Account for =£1G00, for which Payment I charge i ^ Cent. Commission S. Accepted John Morris's Bills for the Account of Charles Le Coin, B. P. No. L3 and l(i 10. , Paid Winter and West's Bill, No. 8, C. B. . . Jlecd. Ca^/i for W.Pemberton's ii///,No.8, C.B. ^—11. Received ^ sundry Ships from Dundee, Osna- burgs, which I have sold to George Holland, for the Account of Wilson and Bell. S. B. page 7.. 13. Accepted Panton and Abram's B?7/,No. 17.B.P, 1 4. Bought of Wentham and Hull, Goods to pay at 9 Months, amounting, as ^ Bills of Parcels, to. . 15. Received CashforE. White's Bill, No. 10, C. B.- 10. Shipped on Board the IVilliam and Mary, for Hamburgh, Tobacco for the Account of William Chuimley, having liist insured the same with the London Assurance Company. I. B. p. 10 1595 350 382 10 15 So 1600 400 570 830 1750 280 261 14 15 m WASTE BOOK. (Set III.) London, March 17, 1804.- Paid Peter Holme's Bill, No. 19. C. B... 18. Paid Gibson and Carr's Bill, No. 14, C. B.. 19. Received Cash for James Prime's Bill, No. 11. C.B 21. Shipped on Board the Nereid, for Leghorn, Pepper, which I have insured with the London Assurance Company, and consigned to Wilson and VaneUi for their Account, 1. B. p. 11 OQ ___- Received Cash for Hampton and Co.'s Bill, No. 9, C.B , O^ : Received from William Sheplierd, for the Pro- duce of my Farm in Kent. C. B - . ., 24. — Received a Letter from William Ohulmley, in- closing a Bill, No. 16, B. R Accepted Two Bills, No. 18 & 19, drawn by JohnBiddie, of Grenada, B. P..... Drawn upon George Broker, Three Bills, No. 17, 18, & 19. B.R Sold Wentham and Hull, Sugar <^ the Martha, on Account of John Biddle. S. B.. p. 5. Sold by Public Auction, Cotton, ^ the Martha, on Account of John Biddle. S. B. p. 6. & C. B. * 25, Shipped on Board the Success, for Dundee, Porter, for the Account of Wilson and Bell, which I have insured with the London Assurance Company. I. B. p. 12 Sold Wansted and Gill, Goods to pay in Two Months, as ^Bill of Parcels 26. Shipped on Board the J^in, for Madeira, Flax, for the Account of Mill man and Son, LB. p. 13 07. Paid Samuel Lightfoot's Bill, No. 4. C. B.... Bought of Home and Jones, sundry Goods, at 4 Months, amounting, as ^ Bill of Parcels, to. . 320 210 364 214 310 62 560 1260 2131 231 780 111 510 721 550 254 10 10 10 11 10 18 o 16 Q 2 WASTE BOOK. (Set III.) 67 London, March 2S, 1S04. Received Cask for William Lamos's Billsj No. 4, 5, &6. c. a Accepted Samuel Lighttbot's Bill, No. 20:B.P. Arrived the Faithful, Sullivan, from Jamaica; r therefore debit the Underwriters for H and when. 64 THE INVOICE BOOK. An Invoice is a Paper sent off with Goods exported on Com- mission. The Preamble generally contains the name of the Ship, Master, Place of Destination, and of the Person to whom the consignment is made. An Account is next given of the Quantity and Amount of the Goods, which are generally cliarged at the bona fide Prime Cost. The tradesmens Bills of Parcels are either copied or sent with the Invoices, and referred to. The shipping Charges are added to the value of the Goods, and upon this sum the Agent or Factor generally charges his Commis- sion. When he insures the Goods, he has also a small Commis- sion on the Capital insured, which Capital is allowed to be some^ thing more than the value of the Risk, in order to cover the amount of the Risk, Premium, and other Expences, in case of loss. The Cost of Insurance generally concludes the Invoice, and the Agent signs his name at the bottom with the words, Errors excepted ; this signature, however, does not appear in the Book. The Invoice Book which contains the copies of allTnvoices sent off, is sometimes called the Invoice Book Outward, to distinguish it from the Invoice Book Inward, which contains copies of In- voices received from abroad. But this Book may be dispensed with, by preserving the originals, either filed, or in pigeon-holes, or pasted in a Blank Book made for the purpose. Invoices of Goods received to be sold on Commission, are ge- nerally copied into the Sales Book, to which the subsequent Charges are added. O) INVOICE BOOK. 65 Ifivoice of Sugar shipped on Board the Neptune^ Henry Mi^rsom, Master^ for Naples^ by order of William Pemberton, Merchant there, for his Account and Risk^ and to him consigned. London, Jan, I, 1804. W. P. No. 1 a 4 No. cfe. 1 Gross i) 1 ?0 2 — 9 Q.5 3 — 9 9 17 4 — 91 «b' Tare 1 1 11 — 1 '^7 — 1 1 — 1 1 y Gross Tare 37 3 4 5 1!^ o 12 Neat 32 2 20 at 51. 3s. «^ Cwt., Charges. Debenture Entry 4 19 Cost of Hogsheads 1 12 () Cartage, Wharfage, Lighterage, and Bills of Ladinc: ■■} 1 4 fj Commission on 1761. Is. ICd. at 2$ ^ Cent... Premium of Insurance on 1901. at 1 1 2 17 Policy Duty 5 Commission | ^ Cent 19 Drawback * allowed at the Custom-House... Ent^, Jour. P. 5. * When an Agent, or the Shipper of Goods on Commis. sion, cbarges what is called the Long Price, he deducts the Drawback from the Amount of the Invoice, or gives his Correspondent credit for the same when he receives iU But when the Shipper only charges the Sbort Pricey he keeps the Debentures or Drawbacks iv himself. 168 184 40 143 5 10 66 INVOICE BOOK. (2) Invoice of sundry Goods shipped on Board the Szvan^ Charles Mills, Master, for Bilboa, by Order of JVil- Ham Lamas, Merchant there^ for his Account and Risk, and to him consigned. London, Jan, \% 1804. W. [,. 1 a Jl »§1 ...J 107 12 9 3 4 No. 1 . S Bags of Pepper, containin a. lb. 8 neat 189()atl3i(l.f^Ib 9. 1 Bale, containing 28 Pieces "1 of Printed Calicoes, (//.7(i3 V157 yards, at 3.s. 4d. ^ yard- J 1 0. 1 Bale, containing 19 Pieces of Bengal iMuslins, amount- ^167 8 9 ing, as "^ B. P 11.3 BalesofIrishLinen,amount- 14. ing.as Charges. Paid for Packing, Cartage, Wharf- "1 age, and Ligliterage j Entry Bond, Bills of Lading, and \ other Charges j 5 5 6 5 8 2 Commission on 6461. 13s. 6d. 2[- ^ Cent. Premium of Insurance on 6801. at 1 ,^ . ,. W^Cent. I 10 4 Stamp Duty at 2s.6d.J^6'^. 17 6 Commission i ^Cent... 3 8 Enf^, . Jour. P. 5. 635 10 16 19 10 14 9 677 1 6 (3) INVOICE BOOK. 67 Invoice of Lead on Board* the Betsy, James Broxvn^ Master, for Leghorn^ by Order and for Account of JVilson and Vanelli, and to them consigned. London, Jan. 15, 1804* W^V. 200 Pi.ers, weighing 2^24 cwt. 3 qrs. at o£?18 10 ^ Fother Charges. Bills of Lading Commission 1| ^ Cent Premium of Insurance on ^'225 at \ ^ ^ \\^Ceut / '^ 7 Stamp Duty 7 6 Commission, \ ^ Cent. 12 6 Ent^ Jour. P. 5. * It is customary to sell Goods delivered on Board the Ship, and then the Invoice is distinguished by the words o« Board, instead of shipped on Beard. If the articles thus sold are Debenture Cioodb, the Seller keeps the Debeniiues t' himself, and leceives the }^o«iiny or Drawback wlien it be comes due. 213 221 INVOICE BOOK. (4) In'coice of sundry Goods shipped on Board the Hope, Henri/ Stanley^ Master, for Jamaica, by Order of Winter and IVest^ Merchants there, for their Account and Risk, and to them consigned. London, Jan. SI, 1804. w.w. la 4 ball 12^Ni:13 14 15&ia 17 a 19 20 a 29 4 HIuls. of Ironmongery, as ^\ ,^^ B.P / ^^^ 7 Chests ditto, ^ ditto 71 <2 Bundles, ^ ditto 50 1 Case of Hats ^ ditto 21 2 Casks of Saddles, ^ ditto- 18 3 Puncheons Hams I ^^. j^, 3 Ditto J ongues J^ 15 10 10 8 9 16 Enti Jour. P. 6'. Charges. * Cartage and Wharfage 13 5 Sundry Shipping Charges 2 I() Commission 2} ^ Cent Insurance on o£:4l0, at 3 ^ Ct. 12 6 Stamp Duty 12 6 Commission, { ^ Cent 2 1 • The general custom is to pay the Freight in London ; this, and other Shipping Charges, are occasionally settled by a Committee of West India Merchants. J75 14 403 19 IS 9 (5) INVOICE BOOK. ^9 Invoice of Sundries shipped on Board the Hope, Henrij Stiinley^ Master, for Jamaica^ by Order and for Ac- count of Hampton and Co. and to them consigned. London, Jan. 31, 1804. H.&C. 1 a 4,3 1 a '20 21 a 30 31 a 40 41 & 42 43 a 45 90 Boxes, containinc: 88 Dozen, 4^ Ib.Moiild Candles, at 9s.SdA42 13 10 <^ Dozen J 10 ditto, 49 Dozen, 5 lb. dipt ditto, I g, ^ „ at 8s. 8d. f Dozen / ^^ 30 Boxes, at li^s 3 10 Boxes, 5 cwt. White Soap, at\^, -.^ ^ 8Gs.^cwt /^^ ^^ ^ 10 Boxes, at Is. 6d. each 15 Bond to recoverD raw back 18 23 3 O Drawback 6 5 2 Puncheons Refined Sugar \ If inclosed 3 Chests of Tea / B. P. Charges. Paid for Cartage, Lighterage, and\ a in r Wharfage. : / ^ ^^ ^ EntryBond,Shipping Charges, audi . ^^ ^ BiUsof Lading / ^ ^'^ " Commission 2|- ^ (.>?z^ Premium of Insurance on o£'190,\ ,. ^ at3'^6>/^^ / ^ ^^ ^ Stamp Duty 5 Commission | ^ Ce7^^ 19 Eni''. Jour. P. 0. 17 8o 170 6 189 11 6 10 70 INVOICE BOOK. (6) Invoice of sundry Goods shipped on Board the Hope^ Henri/ Stanley y Master, J or Jamaica^ by Order of Edward JVhlte^ Merchant there, for his Account and Risky and to him consigned. London, Jan, SI, 1804. E.W. 100 Bundles,containing 5 M.Long^ Wood Hoops, at 110s A 27 10 rM J 6 Sheets of Lead as ^ inclosed 1 ,^o i n o B.P / ^^ ^^ ^ 20 Puncheons, containing: ^ol .^ ,^ ^ quarters of Oats, at 293.. . j 20 Puncheons, at 2js.()d. 25 10 6 Cables \ as ^inclosed J ^^>, f. ^ 26 Coils of Rope I B.P. \^^^ ^^ ^ 3 Puncheons of Hops, as ^^iio-^ jo -iq ditto J "^ Charges. Paid for Cartage, Warfage, andl ^ ,^ .. Lighteragje j Shipping Charges and Bills ofl oar Lading J Commission 2| ^ Cent.. . To Premium of Insurance on doOl.l mm n ^tS^ Cent j> IJ 10 O Stamp Duty 17 6 Commission, Y Cejif 3 5 Enid. Jour. P. 6. 60S b 15 23 652 <7) INVOICE BOOK. 71 Invoice of sundry Goods shipped on boaj^d the Hope, Hcnr^ Stanley^ Master^ for Jamaica, by Order and for Account of James Prime, and to him consigned. London, Jan. 31, 1804. J. P. la 37 1 a i> 10a2l 22 a 31 2 a 35 S6&37 9 Puncheons of Bedding, as ^\ «, B.P / ^^^ 12 Bales, containin;L,^ each 10' 144 1 (i les, containinjL^ each 10*^ Pieces iVized Negro Blan- \ keting, at 24s. ^ Piece J } Canvas, Cord. &c. 2 10 Casks, containing eacli 4 Dozen Check Shirts, at ^ 96 48s. ^ I?ozen-.. Casks ., 2 10 4 Bales, containing 240 Pieces^ of Company's Nankeens, \ 138 at lis. Od. '^ Piece J 2 Bales of Irish bheeting,"^ amounting-, ^ inclosed > 63 17 B.P r. J Charges. Paid for Cartage, Wharfage, and 1 Lighterage J Bond of Bntry, Bills of Lading^ and Shipping Charges j 2 16 5 6 12 9 Commission 9.\ ^ Cent... Premium of Insurance on 6501 V in in n at3^CV;7^ / ^^ ^^ ^^ Stamp Duty 17 6 Commis:sion { 4f^ Ceiit. 3 5 Ent'. Jour, P. 6. 603 9 15 23 652 13 n INVOICE BOOK. (8) Invoice of Sundries shipped on Board the Hope, Henry Stanley, Master^ for Jamaica, for the Account and Risk of Edward Connor, and to him consigned. London, Jan. 31? 1804. E. C. 1 Hh J. containing: 3 10 Men's In- \ mo in n digo Blue Jackets, at 84d../ ^"^ ^" ^ jj Hhd.S20s. Waterage, Is. 6d. 116 7^ Pieces Dundee Cotton Bag-"\ ging, 4392 yards, at 12|d. / Yv' rapper and Cordage 48 Pieces f wide bleached Russia 1 Sheeting at 8Ss.j Case, Packing, &:c. - - I Hhd . of Ironmongery, amount- "1 ing to, as ^ inclosed B. P. j Ho?:shead 228 15 I 10 211 4 15 6 83 10 6 1 1 1 Chest of Cutlery, amounting to, as<^ B. P. with Chest Charges. Packing, Cartage, Wharfage, and 1 Lighterage - J Entry Bond, Shipping Charges, Searchers* Fees, and Bills Lading 5 of V 3 18 6 5 10 8 Commission, 2f ^ Cent. Premium of Insurance on I 75S1. 10s. at 3i ^ Cent / Policy, 2s. 6d. ^ Cent. Commission, | ^ Cent. £nt'. Jour. P. 6. 109 230 211 84 68 11 704 26 10 11 1 S 15 11 31 763 Q 19 11 12 .0 17117 6 5 a 10 11 (S) INVOICE BOOK. Inmice of sundry Goods shipped on Board the Hope, Henry Stanley^ Master^ for Jamaica^ consigned for Sale to Richard Broadley, Merchant there, an Account and Risk of the said Richard Broadley and the Shipper, each a Half Share^ London, Jan. 31, 1 804. R. B. 1 a !»)' 17 a 24 25 a 34 35 «5- 30' 10 Puncheons, containing 130"1 Pieces Blue Milled Ker- S- 374 seys, at 5.3s. J 8 Ditto, containinp: 52 Pieces ~| Broad stripe Blanketing A 214 10 each at 82s. Od ..J 24 Puncheons, at 3()s..- 3G ( 10 Piinchs. \ of Hardware, as / „^^ . „ 2 Hhds. / ^ B. P. \ -^- ^ -" 10 Puncheons at 308. ; 2 Hhds. \ -, ^ ^ ^ at20s / 1' ^ ^' Charges. Packins:, Cartaf^e, Wharfage, \ . ^ . and Waterage / ^ ' "" Entry Bond, Sliipping Charges, S Searchers' Fees, and Bills of > 4 7 Lading ^ .. . J Commission at £i ^ Cent. Tq Premium of Insinance on\ ,^_ ^ ^ o£lOOO, at 3£ «^ Cent / ^^ ^ ^^ Stamp Duty, 2s. Od.^^Ce;?/. 15 Commission on ditto i«^ CVw^ 5 .023 15 Em' Jour. P.O. 8114. 23 6 41 5 997 74 INVOICE BOOK, (10) Invoice of Sw Hogsheads of Tobacco^ slapped on Board ike TVilliam and Mary, John Grater, Master, for Hamburgh, on Account and Risk of JVilliam Chulm^ ley of the said Place, London, March \6, 1804. W. C. I a 6 No. 1 2 4 5 18 1 10 19 2 12 18 1 10 \S 1 14 12 3 26 12 3 ^ Tare 1 2 19 1 1 1 1 1 3 5 2 6 2 21 1 6 I 15 100 1 21 Gross 9 1 16 9 1 16 Tare — 91 5 Net, at 5d. ^ lb. Charges. Bond and Custom-IIouse Entry- -.010 6 Cost of Empty Hogsheads 4 l6 i Lighterage, and small Charges 14 Bills of Lading , '6 6 Brokerage, at -\ ^ Cent 1 I 2 Commission, 2 ^ Cent --.._ 4 4 11 Insurance on o£260, at 13 Guineas"! ^ . r^ r, ^ Cent ]^^ ^ ^ Policy, 2s. 6d. ^ Cent 7 6 Commission on ditto, \ ^ Cent, 16 Enl\ Jour, P. 15. 212 12 37 261 15 no INVOICE BOOK. 75 Invoice of 10 Bales of Pepper^ shipped on Board the Ne» reidj Captain IVilUam M'Cleay^ for Leghorn^ for the Account and Risk of Wilson and VaneUi ; marked and Numbered as ^ Margin. London, March 9.\, 1804. W.^V. la 19 10 Bales of Pepper, weighing each lb, 3200 Gross 40 Tare 2 3 12 3160 Suttle 121f Tret 4/6. ^ 104 30381 Net, at 14Jd«ip'/6. Charges. Entiy Bond and Shipping Charges 1 2 Lot Money and Casing, 21s. 8d.\ ^ p Cartage, 5s / ^ ^ SearcheiV Fees, 3s. Watching, ls.6d. 4 6 Waterage, Wharfage, and Shipping 8 4 Brokerage, \^ Cent 18 8 Commission, 2 ^ Cent, on £\SQ 14 9 Insurance on <£22(), at £S 8s. ^'\ Cent, warranted with Convoy >1S 9 7 for the Voyage ->* J PoUcy at 2s. 6d. ^ Cent 7 Commission on ditto | ^ Cent,. - - 1 2 Enti Jour. P. l^. 186 14 19 19 214 76 IxWOICE BOOK, (12) Inxioice of Porter shipped in the Success, Clarice, by Order, mid for Account of IVilson and Bell, of Dundee. London, March 25. 1 804 W.B. 24 Hhds. "I Quantity, 10 Barrels > 49 Barrels Beer at 32s. 78 8 4 Half Hhds J 24 Hhd. Casks at 15s. 18 10 Barrels atl^is. 4 Half Hhds. at 12s. 2 8 Shipping Charges 104 16 12 8 Commission on <£105 8s. 8d. at ^\^ Ct. Charges. Premium of Insurance on ^120, London to Dundee, at 2 Gui neas ^ XJent Commission on ditto, at f «^ Ce7it, Stamp for Policy ''1 -i. 2 70 ii 12 5 3 111 Enti Jour. P. 16. 105 2 108 (14) INVOICE BOOK. 77 invoice of Fla.v shipped on boat\l the Ann^ ^PCarthy, for Madeira, on Account and Risk of Millman and Son, of Lisbon^ and co7isigned^ by their Order^ to John Ki/ig^ of Madeira. London, March q6, 1804* 153 Mats, CQVitaining 10 Tons ofl Thcisseiihausen Flax, 6'3l. j 153 Mats and Packing, at 8d. Carting, Loading, Shipping, and") \\ harfing, at 4y. Od j Lighterage and Watching Order of Council Entry, Searchers* Certificate, &;c. Special Bond Keeping out Bill of Entry . Charges. Bills of Lading.-- G Freight and Primage paid 21 630 5 2 2 5 2 6 5 5 1 14 6 1 1 2 6 Commission, 9| ^ Cent, To Premium of Insurance oiil 3 9 7451. at 4 Guineas <^ Cent '' StampDuty,at2s,6d.c^6ew^ 10 Commission ^ <^ Cent 3 14 6 Eni^, Jour. P. 16-. 047 21 669 16 685 36 16 721 ?» INVOICE BOOK- (I4> Invoke of f 3 Chests of Tea shipped on Board the Sally ^ John Daly -i for Dublin, by Order for Account and Risk of Peter Holmes. London, March 30, 1804. I fl 13 SixChests of Congou ^ the Abergavenny, No. Comp. Noi Cwt. qr. Ik. 2903 10 6 Tare ^5 each 4 3 16 Dft. 1 5 6 7 8 Tare 26 qr. lb. 10 6 3 16 10 7 10 3 3 27 1 9 6 21 1 1 16 T3 5at3s.6d.^lb. 03 19 Duty at 40 '^ Cent. 37 11 Six Chests of Souchong ^ the Bomhay Castle. 7 8 9 10 11 12 2855 6 7 8 9 60 Tare 10 3 17 3 8 3 15 3 14 3 8 5 16 114 Tare 23 each. Dft. 1 24 3 3 I2at3s.9.-.. 4 ©f Hampton and Co •'^ Edward fV/iite C> James Prime _ - 7 Edmund Connor 8 Jlichard Broodley and Shipper 9 Iwvoice of Tobacco ^ the William and Mary for Ifamburg,for Acpount of William Chulmky '. 1© Invoice of Pepper ^ the Nereid, for Leghorn,, for Account of Wilson and Fanelli 11 Invoice of Porter ^ the Success, for Dttndee, for Account of Wilsonand Bell 1^ Invoice of Flax, ^ the Jnn, for Madeira, for Account of Millman and Son 13 Invoice' of Teas, ^ the Sally, for J)?(6/m, for Account of Peter Holmes. -•- 14 SI THE SALES BOOK, OR FACTORV BOOK This Book is used to trace the Net Proceeds of any Cargo or Consignment sold upon Commission. An Account Sales generally occupies Two Pages, with a Preamble over both, setting forth the Names of the Goods, Ship, and Person from whom the Consignment is received. The first or left-hand Page contains an Account of the various Charges in- curred by the Transaction, such as Freight, Custom, Expences of Landing and Selling, together with the Brokerage, and Factor's Commission, both of which are charged on the Gross Amount of the Sales.* The second, or right-hand Page, contains an Account of the Quantity, Price, and Amount of the Goods sold, with the Buyer's Name, and the Time of Payment. The difference between this Gross Amount, and the Charges on the other side is the Net Pro- ceeds ; for which the Factor gives his Correspondent credit, and sends him a copy of the Account Sales, and he generally signs his Name at the bottom, with the words Errors Excepted. In small Consignments, an Account Sales may be comprised in one Page, beginning either with the Charges, or with the Amount of the GoodiJ. The forms of these Accounts are various, but all tend to the same object, that of ascertaining the Net Proceeds, ♦ Commission is sometimes charged on Money advanced for Duty, together with the Gross Amount of the Consignment j and some Factors charge Interest on all Advances. S2 SALES BOOK. O) j Dr. Account Sales of 1 Pipes of Fort IVine^ received ^ 1804. Jan. 53 Feb. 4 Charges. To Duty* on 1374 Galls. at\ Is. 6|d^ Gall / Excise, at 111. 18s. <^ Tun ofl 252 Galls / Freight, Primage, &c Cooperage, 3s. ^ Pipe Cartage, Wharfage, &c. as <^'l Cooper's Account / Vault Rent, Insurance from "J Fire, and taking Stock J Brokerage, 5s. ^ Pipe Land waiter's Fees Postage of Letters - 106 17 4 64 17 10 7 1 10 6 9 3 2 10 10 10 Interest on Duty advanced to this Day, 'i 9i5 Pays, at 5 ^ Cent / Commission at 2| ^ Cent. To Millman and Son, for Net Pro-1 ceeds due this Day J * The Q Tirft 40801b. Net ISd. 221 18 1089 M — — 90 SALES BOOK. (5) Dr. Sales of 5 Hkds. Sugai\ received ^ the Martha^ 1804. Mar. 4 Mar. 24 Charges. Cwt. qr, lb. To Duty on 57 1 15. at 17s. 6d.\ .^ . <^Cwt ../^^ ^ BillMoney ^ 9 Freight i8 9 Primage, Pierage, and Trade . 8 Dock Dues, at 9d. ^ Cwt 2^ 3 Brokerage, at f ^ Cent 1 3 To Commision, 2f «^ Cent To J. Biddle for Net Proceeds due this day Eni^. J OUT, P. 17, 72 5 78 153 231 18 15 14 3 18 (5) SALES BOOK. 91 Laxvson, from Grenada, on Account of John Biddle* Cr 1804. I Mar. 24 By Wenthani and Hull, 5 Hhds. at 3 Months. cS^ 1 12 1 18 2 12 3 9 3 12 1 21 4 11 3 21 5 13 2 9 63 22 * Tare 6 o 15 Net o6' 2 7 7 at 82s. ^ Cwt. * The Tare of Sugar is taken from the weight of the j Casks. 231 18 92 SALES BOOK, (6) Dr. Sales of 1 6 Bales of Cotton JVool, received ^ the 1804. Mar. 24 Mar. 24 Cotton. Duty 8s. ^ iOOlbs. on 4207 lbs. 16 16" 6 ETitry,&c 9 Freight, &c 39 8 9 Primao-e, &c. Is. 4id <^ Bale 1 2 Dock Dues, 2s. 8d." ^ Cwt 3 Mending for Delivery, &c 8 4 Advertising, &c 17 6 Insurance from Fire 1 4 Brokerage 8 Q To Commission, 2} ^ Cent. To J. Biddle, for Net Proceeds due this day Ent3 Suttl? 11*3 22 1338 52 Tret 13 3 23 1563 60 1503 51 Net lb. IJulatSs. lid v^S7 Discount 1 1 per Cent • Draft, 1 lb per Rag. Tare, 4 lb. per Cwt. Tret, 4 lb. per 104 lb. 234 252 294 8(»1 12 789 13 6 3 94 SALES BOOK. (7) Sales of Osruiburgs received by sundry Ships for Account of Wilson and Bell of Dundee. London, March 11, 1804. 1S04. Sold George Holland at 14 Months * No. 1 Q 3 4 Flax Osn. Wr. Do. Do. Wr. Tow, ditto Wr. Do. Do, Wr. Mar. 11 Charges. To Freight f Eliza; Clarke. To ditto ^ ^eptuneyDrummond To ditto ^ Active, Mills . , To Landing, Wliarfage, Cart-l age, and Housing J To Cartage to Buyers, 12s. ;1 odd Pence, Is 3d J To Warehouse Rent, \ ^ Cent To Insurance against Fire, 1 3s. (id. if" Cent f To Commission and Insuring 1 Debts, at 4 ^ Cent / To Wilson and Bell, for Net 1 Proceeds due this Day J Enf^ Jour, P. 17. Pieces. 15 1 « 15 1 14 1 15 I 2135 28 217() 63 2018 24 2160;7| 23 (i Month*. 14 8598 15 J2041 32 |4367 16 2190 63 8598 *lo- 67 68 58 ^4 261 16 244 n\ 3 1211 ♦ Scotch Factors generally give the same Credit which they receive, and keep an Interest Account open with their Correspondents, reckoning for any deviation on either side from the stated time. (/-) SALfiS BOOK. 95 Saks of Linen, 1 Pack Brozvn, f wide, ^ the Hihernia, on Account of Peter Holmes of Dublin. ' London, March 30, 1804. Sold George Holland, payable at 8 Months. Kec« Yard.. d. No. 1 4 202 7 5 17 10 2 4 203 7t 6 (5 \0\ 3 4 203 8 6 15 4 4 4 202 ^ 7 3 1 6 4 202 9 7 11 6 6 4 204 9^ 8 1 6 7 4 . 202 10 8 8 4 8 4 • 202 m 8 Ki 9 9 4 200 M 9 3 4 10 4 199 llf 9 10 8i 1 Wrapper 52 () 16 41 Freight, &c, .- 1 4 Cartage, Porterage, &c 3 Warehouse Rent and lni5urancel q 15 from Fire, 1 ^ Cent / Insurance of Debts, ditto 15 * Advance of Money, 2f ^^ Cent. 1 19 Commission, ditto 1 19 To Peter Hohiies's Credit in Account Current Enf^. Jour. P. 18. * Irish Factors, in London, give the wholesale Linen. Dtapers Eight Months Credit, and chart;e their Employers in Ireland Half a Year's Interest at 5 per Cent, for Advance of Money ; the other Two Months are allowed for corres- pondence, and the .Time their Acceptances have to run. An Interest Account is ke[)t open between the Parties, and any Deviation on either Side from these Tvs'o Months, is ac- counted for. 72 18 96 INDEX TO THE SALES BOOK. Page. Sales of Port Wine, ^ the Nancy, from Lisbon, on Ac- count of Millman and Son .' 1 Sales of Olive Oily ^ the Swan, from Leghorn, on Account of Wilson and Vanelli 2 Sales of Sugar, ^' the Dolphin, from Jamaica, on Account of Winter and West -- - 3 Sales of Cotton and Pimento, ^ the Dolphin, from Jamaica, on Account of Edward White 4 Sales of Sugar, "^ the Martha, from Grenada, on Account of John Biddle -- 5 Sales of Cotton, ^ the Martha, from Grenada, on Account of John Biadle : 6 Sales of Osnaburgs, for Account of Wilson and Bell, of Dundee 7 Sales of IJnen, ^ the Hihernia, from Dublin, on Account of Peter Holmes 1 8 ^=^^K^^a2^^ 97 THE CASH BOOK. The Cash Book contains an Account of all Money Trans- actions ; it is Ivept in a folio form like the Ledger, with Dr, marked on the Left-hand Page, and Cr. on the Right. On the Dr. side is entered all Money received, and on the Cr. all Money paid. The Amount of these Receipts and Disbursements may be carried each in one sum to the Ledger, for every Month, Week, or Day, according to the extent of the Business, but Monthly Divisions are the most general ; and it is found convenient to transfer the Cash Book first to the Journal, classing Articles of the same kind together. The following Cash Book is formed from the Waste Book and Subsidiary Books, by observing those transactions where Money is either paid or received, and entering them accordingly with Dates, Names, and other necessary particulars. In real busi- ness, however, such transactions should be entered at the time they take place. Separate Columns are sometimes allotted in the Cash Book for Money kept at different places, such as at a Banker's, at the Bank, and at home. The Banker's Book is generally found use- ful in correcting and abridging the Cash Book ; and it may be also abridged by the help of a Petty Cash Book, containing an Account of Small Charges on Merchandize, and of other inci- dental Expences. The Cash Book sometimes contains Accounts that need not be transferred to the Journal, such as Loans and Accommodations, which are to be soon repaid ; these may be entered short, and when settled, they, of course, balance themselves. 98 CASH BOOK, Jan. Cash, Dr, Received. 1804, Jan. 5 15 25 27 28 31 To Interest for discounting H. Barlow's Bill,\ No. 215 / To Bills Receivable, No. 210, Ramsay and Co. No. 424, E. Malone No. 235, ditto To Ship Charlotte, received for Freight To Farm in Kent -.. To Debentures ^ 1 520 400 383 138 54 195 1693 Enti Jour, P. 3. 13 CASH BOOK, Jan. 99 Contra, Cr, Paid. By Charges on Merchandize ^ 'Neptune for 'I Naples J By Bills Payable, No. 215, H. Barlow By Charges on Merchandize, ^ Swa?i, for Bilboa By Bills Payable, No. 213, C. Mills By Charges on Merchandize, ^ Betsey, fori Leghorn j By ditto for Sales, ^ Nancy, paid Customs, S^c. By Bills Payable, No. 214, J. Gibson - No. 219, J. Harrison 7 16 410 By Ship Charlotte, paid for Repairs By Bills Payable, No. 216, Walter Hume. No. 218, T. Pembroke . . By Charges on Merchandize, ^ Hope, for Ja-^ maica j By House, Expences .- Enfi, Jour. P. 3. 10 713 131 lit 106 431 210 43 610 105 44 QS 2854 11 9 15 9 10 6 15, 15! 3 U 6 9 8 10 2 7 100 CASH BOOK, Feb. Cash, Dr. 1804. Feb. 1 1 9 15 18 21 ^4 28 To Bills Receivable, No. 3, William Chulmley No. 141, Hamilton and Co.. No. 2, William Chulmley No. 133, Weldon and Co.. . To Interest J received a Dividend at the Bank.. To Lottery Tickets, received a Prize To Bills Receivable, No. 261, Weldoii and Go. No. 104, ditto Lnt^. Jour. P. 8. Received. 372 312 210 102 80 10 231 210 1594 10 CASH BOOK, Fkb. lOf Contra, Cr. Paid. By Charges on Merchandize ^ the Simn^ from^ Leghorn, on Account of Wilson and Vanelli j By Lottery Tickets By Bills Payable, No. 1, George Holland By Charges on MerchandizCj ^ the Dolphin, from Jamaica, on Account of Winter and West S204 16 2 By ditto, on Account of E. White. - 107 17 4 By Bills Payable, No. 217, P. Hamilton By Charges on Merchandize ^ paid for Hemp atl Landing - J By Bills Payable, No. 2, Gibson and Carr By Charges on Merchandize for Sugar in Company By Bills Payable, No. 3, Samuel Lightfoot No. 5, Smithson and Co By Henry Stanton, paid him the Balance of! his A ccount J By Interest on ditto By Household Furniture By House at liichmond, paid for Repairs By House Expences By lient and Taxes Entd- Jour, P. .^. 32 19 I 37 10 400 312 13 126 16 300 823 500 237 174 130 42 57 105 3208 10 102 CASH BOOK, Mar. Cash, Dr. Received. To Funded Property, sold 20001, Stock at 79i & 1 To Bil/s lleceivabie, No. I, Charles Le Coin. No. 8, Wm. Pemberton- -^ No. 10. E. White . No. 11, J. Prime No. 9, Hampton and Co. To Farm in Kent, received of W. Shepherd To Sales of Cotton ^ the Martha, sold by 1 public Auction / To Bills Receivable y No. 4, W. Lamos No. 5, ditto - No. 6, ditto 1595 85 570 280 364 310 62 789 250 310 540 135 To Debentures 17 4 CASH BOOK, Mar. lo: Contra, Cr. Paid. By Bills Payable, No. 6, Smithson and Co No. 7, Ditto , By Charges on Merchandize, ^ the Martha, from Grenada, on Account of John Biddle, viz. on Sugar 72 18 9 on Cotton 73 1() 3 By Bills Payable, No. 8, Winter and West By Charges on Merchandize for Account of! Wilson and Bell, of Dundee / By ditto, ^ the William ^ Mary, for Hamburgh By Bills Payable, No. 12, P. Holmes No. 14, Gibson and Carr By Charges on Merchandize, ^ the Nereid, for 1 Leghorn J By ditto, ^ the Success, for Dundee By ditto, ^ the J tine, for Madeira By Bills Payable, No. 4, S. Lightfoot By Funded Property, bought ooOOl. Stock, inl the 3 ^ Cents. Reduced, at 62| and | Com- V mission J By Merchandize, paid for 7eay at the India House By Charges on Merchandize, ^ the Sally, fori , Dublin / By ditto, ^ the Hibernia, from Dublin By House Expences By Charges on Merchandize, not posted to any! other Account .j Enli Jour. P. 14. 310 10 272 5 146 15 400 6 9 7 IS 320 210 4 12 39 2 550 2183 289 10 6 15 2 3 50 19 79 10 4879 13 I 1 1 ! 1()4 JOURNAL, (Set III.) The Journal opens with the Inventory of Stock, after which the Subsidiary Books are Journalised separately according to the following Rules ; and then such transactions of the Waste Book as are Hot contained in any of the Subsidiary Books, close the Journal for each Month. RULES FOR JOURNALISING tue SUBSIDIARY BOOKS. 1. TO JOURNALISE THE CASH BOOK. For all Money received Cash Dr. to Sundries. For all Money Paid Simdries Drs, to Cash. Specifying Particulars, and classing Items of the same kind to- gether. See Page 3, Journal, 2. TO JOURNALISE THE BILL BOOK. For all Bills received Bills Receivable Dr. to Sundries. For all Bills accepted Sundries Drs, to Bills Payable. Setting forth Names, Numbers, and other necessary Particulars. See Page 4, Journal, 3. TO JOURNALISE THE INVOICE BOOK. The Person (for whose Account the Invoice is sent) Dr. to Sundries, viz. To Merchandize For Amount of Goods. To Charges on Merchandize For Shipping and other Charges. To Commission For the Factor's Commission. To Insurance For Premium of Insurance. See Page 5, Journal. When several Invoices are sent by the same Ship, they may be arranged in Columns, as in Page 0, a method which promotes both accuracy and dispatch, and which might be also used with the Invoice Book in general, and with the Sales Book. lOo 4. TO JOURNALISE THE SALES BOOK, The Person to whom the Goods are sold, is debited /or the Sales, and if they are sold for Ready Money, the Account is entered accordingly in the Cash Book. — Then, Sales (^the Ship's Name, &c.) Dr. to Sundries* To Charges on Merchandize For Charges at Landing, &c. rri T . . /For Interest (if charged on ^^ ^"^^'^^^ \ Money advanced.) To Commission For the Factor's Commission. T A Ty rn n • ) / For Net Proceeds. See Page To J. B. flhe Consigner). ..^ ^^ j^^^^^^j^ » These Titles vary in different Houfes ; as, Sales of Cottottf Sugar, &?c. fer the Ship^ Dr. J Merchandize Importedf Dr. ; Consignments, &c. and the Charges on Sales and Invoices, viz. Freight^ Convoy^ Duty, and Cuttomt, are mostly arranged ui der separate heads j but however these modes and terms may vary, the Principles and Result are th6 same. 106 JOURNAL. (Set III.) LONDON^ January 1804. (0. ist 1 1 1 2 2 2 2 3 5 5 6 () 6 7 7 7 8 8 Sundries Drs. t to Stock. For the following Balances in my favour the 3 1st. Ult. transferred. Cash -for Balance in hand ._. ,.. 11700 3130 1520 500 750 3120 2105 4ti2 2225 572 SSQ 428 572 310 216 7§1 570 10 10 10 10 15 12 19 13 11 13 2 7 6 a 9 5 6 »8 Funded Property 4,0001. at 78| inthe4 ^D*. Farm in Kent _.,..• . House at Richmond Household Furniture ......«, Ship Charlotte- . my half. _ _. Merchandize — for Balance in hand - Debentures.. (^Balance due at the"! \ Custom House / Bills Receivable, for the Amount of Bills \ due to me j " ' Millman and Soji, Oporto. . _ . - Charles Le Coin, Paris William Lamos, Bilboa Panton and Abrym, Fetershurgh William Chulniley, Hambnrgh Edward Taverton, Amsterdam - . Wiiliam Pemberton, Naples Wilson and VaneUi, Leghorn 29356 * The first Column here contains the Day of the Month and the second, the folio of the Ledger where each Ac- count iS posteJ. t A difference prevails among Book-keepers, with respect ',o using Dr. or Drs. after "plufal Accounts. — The proper vay seems to be, to vise it in the P,iural, after Su?idr'ies only 5 and in the Singular, after Plural Titles, which staad but for one Articbe or one Firm : — as. Bills Receivable Dr.— Profit and Loss Dr.— Wilson and Bell Dr. &c. JOURNAL. (Set. III.) 107 (2) LONWNy January \, 1304. l5t 1 Stock Dr. to Sundries*, For the folVawing Balances against me the Slst. Ult uansferred. To Smithson and Co. London To Wentham and Hull, Ditto To Nicholson and Hope, Ditto To Peter Bonham, Ditto To Home and Jones, JJitto To George Holland, Ditto To Wanstead and Gill, Leeds To Henry Stanton, Sheffield To Gibson and Carr, Birmingham To Ashford and Son, Manchester V2\ To Winter and West, Jamaica To Hampton and Co. Ditto To Kdward White, Ditto To James Prime, Ditto To Edmund Connor Ditto To Richard Broad ley Ditto To Peter Holmes D?ib/in To Wilson and Bell Dundee To Bills Payable, for my Acceptances unpaid 8 9 9 9 10 10 10 11 11 11 V2 V2 13 13 13 14 14 5 * The -word Sundries is objected to by some Book-keep- ers asingrammatical ; but it may be considered here as an abbreviation of Sundry Accounts, and its use is sufficiently sanctioned by the general practice of Merchants. Its pro- priety, too, is supported by analogy, for several other ad- jectives are thus converted into substaotives, as Goods, Evils, Blacks, Wliites, &c. 820 710 241 371 572 421 205 174 2(i8 416 506 173 31(i 516 721 216 521 137 2608 9927 5 9 10 19 IS 11 o 11 II 13 10 4 19 18 9 10 5 4 10 6^ 9 6 3 4 5 O o 11 1G8 JOURNAL. (Set III.) LONDON, Junuary 1804. (3) 5 15 25 27 2S 31 14 5 1 12 15 23 31 5 12 26 2G 30 30 30 31 Cash Dr. to Sundries. For the following Sums received this Month, diSper C, B. p. 92. To Interest To Bills Receivable, No. 210 520 424 400 235 383 10 To Ship Charlotte To Farm in Kent. To Debentures Sundries Drs. to Cash. For the following Sums paid thi; Month, as/>^r C. B. p. 93. 16 Chgs. on Merch.^ Neptune, for Naples 7 ^ Sicayi, for Bilboa 10 13 S ^ Betsey, for Leghorn 2 6 ^ Nancy, i'romOportoigd 11 9 -•.<§>* Hope, for Jamaica 44 9 8 B///^ Fayahle, No. 215 213 214 219 216 218 410 713 431 210 610 105 11 15 10 15 11 2 Ship Charlotte - . 15 House Expences 1303 138 54 195 169: 259 2482 43 2854 .£ JOURNAL. (Set III.) 109 (4) LONDON, Januari; iSO^, 3 19 25 21 29 Bills Receivable Dr. to Sundries, For the following Bills received this Month, as /»fr B B. p. 54. To C.LeCoimNo. 1, due Mar. 6 To Will. Chulmley, 2, — Feb. 22 210 3, 12 372 10 To William Lamos 4, — Mar.2S 250 5, 28 310 -0, 28 240 SuNDRiE« Drs, to Bills Payable, For the following Bills accepted by me this Month, a> fer B. B. p. £»G*. G. Holland, No. Gibson and Carr. S. Lightfoot 1, due Feb. 5 o 15, .--- 3, 24 500 4, ~ Mar. 27 550 8. Smithson and Co. 5, — Feb. 21 237 10 6\ 7, Mar. 310 10 272 5 * As Bills ar^ somotiraes put into circulation before ac- ceptance, this account is supposed to include all bills pay. able (of the raumh), whether accepted, or meant to be accepted. 85 582 800 1468 14 10 4 400 oOO 1050 820 2570 II© JOURNxVL. (Set III.) LONDON^ Januarii 1804. (^) 13 William P ember ton, Dr. to Sundries. For Amoimt of Invoice of Sugar fer Nancy, for Naples i as/)fr I. B. p. 1. To Merchandize* 1 38 110 To Charges on Merchandize 7 16 To Commission -. 4 IS 2 To Insurance , 3 3 15 AViLLiAM Lamgs, Dr. to Sundries. For Amount of Invoice per Sivafty fo Bilboa^ as fer I. H. p. 2. ro Merchandize QSb 19 10 I'o Charges on Merchandize 10 13 8 To Commission 10 11 4 To Insurance 11 1 6 WiLsoM 1^ Vanelli, Dr. to Sundries. For Amount of Invoice of Lead per Betsey^ for Leghorn^ 2^% per I.E. p. S. To Merchandize 1 213 4 5 To Charges on Merchandize Q 6 To Commission 4 17 2 To Insurance 3 15 ♦ The Merchandize less the Drawback. The most g' reral practice, however, is to keep the merchandize and f'rawbacks separate, but the result in both cases is the same. 143 18 677 go] 19 JOURNAL. (Set Hi.) ,^-> >-, ,^ l_l ,~ r_ _ _ ^. c^ i^ ^ 03 CO 03 *k 03 00 <0 to i-Q '*.*<' Co 1 1 ■ o 1 S Dr Winter and West . Hampton and Co.. Edward White . . . James Prime Edmund Connor. . jJdventure to Jamai with R. Broad ley Richard Broad ley, Cr Merchandize . . f G 'rgS: :::;•■' 09\ i i ! i • I r-2 I I I ; . • , flj . . • » • . ■ 1 1 :3 • 1 1 i. • • . . ^ . . . , . i L i 1 1 1 1 1 c D I ' CO *oo ^ bi o« t^ r?; 03 OO I • o -la c: v-- 03 ^ C/3 • *o c O O -1 ^ o Vi J^ Ot 00 *>. 03 oo o ;»• <^ H-> 1 v_i I— : 4— 1 ? to ^ O' 1 Cw <0 03 (0 iO CO 5. -1 «^ a i 1—' 03 J^ a Ci o CO •p > 3 & , " • ^^ o 3 C^ ^ .— • • 4^ I 00 CO CO !> — ' i— ' »t^ O O C' h- Ci 1- 00 I—" r^ O' Cr. ^ cr 00 4ii. Oi^ 112 JOURNAL. (Set III.) LONDON^ January 1804. (7) IS 31 31 Merchandize Dr. to Samuel Lightfoot*. For^moMw^o/GootZ* boughtof him,as<^B.P. Insurance I>. to the London Assurance ^ Company. For Ainouat of Insurances made this Month, as/>«r I. £. p. 1 a 10. ^ Nancy, for Naples 3 9 ^ Swan, for Bilboa - '11 1 6 ^ Betsey, for LegJiom 3 150 ^ Hope, for Jamaica 123 8 5 Debentures Dr. to Merchandize. For Drawbacks received this Month * The accounts contained in this page, not being regu- larly entered in any of the subsidiary book*, close the Jour- nal for the month. 3050 141 11 138 15 JOURNAL. (Set III.) 113 (8) LONDON, February 1 804. 1 i 9 15 24 28 18 21 14 16' Q 11 20 4 .5 11 15 24 2(i 27 28 16 Cash Dr. to Sundries, For the following Sums received this Mouth, zsper C. B. p. 100. To Bills Receivable, No 3.. ...372 10 141 . ...312 2. - ...210 153.. ...162 10 2()1 . . ...231 5 104.- ...216 5 To Interest To Lottery Tickets. 1504 80 10 1594 Sundries Drs. to Cash. For the following Sums paid this Mon-h, asperC.B. p. 101. Charges on Merchandize ^ Swan, \ „j, » ^ ^ from Leghorn J -^^ ^^ ^^ ^Dolphin from Jamaica 312 13 6 tor Hemp 16 11 3 for ^Mgar in Company. .823 5 6 Lottery Tickets Bills Payable, No. 11 11 2 2 15 16 1 217 2 3 400 126 300 500 237 10 Henry Stanton Interest Household Furniture House at Richmond . House Expences Rent and Taxes 10, 1185 37 1563 174 2 130 42 57 105 3298 9 I 114 JOURiVAL. (Set III.) LONDON^ February 1804. (9) 17 14 15 12 14 11 Bills Receivable Dr, to Sundries, For the following Bills received this Month, as^tfr B. R. p 61. No. Due. To Wm. Pemberton, 7 March 4,. 350 8 . 10., 570 To Hampton and Co. 9 ^0 To Edward White. -10 13 To James Prime 11 23 To Edmmid Comior 12 April 20 To Richard Broadley 13 20 Sundries Drs. to Bills Payable, For the following Bills drawn on me and accepted) this Month, as per B. P. p. G2. No. Due. Winter and West 8 March 10 400 9 April 10 400 10 10 500 - 11 May 10 400 Peter Holmes. . . 12 March 17 320 13 April 17 285 Gibson and Carr 14 March 18 920 310 280 304 328 174 2377 10 10 1700 605 210 2515 JOURNAL. (Set III.) 115 (10) LONDON, February 1804. 16 Sundries Brs, to Sales ^ the Nancy. For Amount of 10 Pipes of Port, for Account of Millman aad Son, as/icr S, B, f. 1. SmithsonandCo.6Pipes,atf2Mths.ei8 1 S Henry Clinton, 4 ditto, ut 3 Mths. 139 113 16 1 4 14 6 Sales ^ the Nancy Dr, to Sundries, To Charges on Merchandize To Commission To Interest To Millman and Son, for Net" Proceeds of 10 Pipes as ^ S. B. f. 1. for Net^ of Port, V J 196 11 9 8 IS 9 2 5 2 149 17 3 357 12 11 12 S 12i 12 12 16 16 Sundries Drs. to Sales ^ the Swaji, For Amount of 6 pipes of Olive Oil, for Account of Wilson and Vanelli, as/^r S, B. f. 2. Thomas Aveling, 2Pipes, at 2 Mths. 65 3 Edward Kimpton, 4 ditto, at 3 Mths.132 3 Saies ^ the Swan Dr, to Sundries, To Charges on Merchandize 32 12 10 To Commission 5 14 10 To Wilson and Vanelli, for Net"^ Proceeds of 6 pipes of Olive )• 158 12 10 Oil, as'^S.B. f.2.---..-J 357 12 11 197 19: 01 6 116 JOtjRNAL. (Set. lit.) LONDON J Februari) 1804. (H) 14; 8 16 Sm ithson and Co. Dr. to Sales'^ the Dolphin, For Amount of \'2 Hhds. of Sugar, at 2*1 isioiiths, for Account of Winter and > West, as ^b.B.f. 3 J 14 116 3 4 12 478 18 Sales ^ the Dolphin Dr. to Sundries. For Air.ount of Sn^ar, as/)fr S. B. f. 3. To Charges on Merchandize 204 16 T'o Commission 11 19 To Winter and West, for Net") Proceeds of 1 2 Hlids. of Sn^ar, >262 3 as^^S. B. f.3 QO 26 16 9 18 J 478 18 Sundries Drs. to Sales ^ the Dolphin. For Amount of Cotton arul Pimento, zls per S. B. f. 4. To Peter Bonhani, for 25 Hales ofl q«^ . . ^ Cotton, payable at 2 Months j Edward Taylor, for 60 Bags of 1^^,^ . Pimento, payable at 2 Months j "^"^ 1089 18 20 26 16 3 4 12 Sales ^ the Dolphin Dr. to Sundries. For Amount of Cotton and Pimento, as per S. B. f. Fo Charges on Merchandize, i - , - 107 17 To Commission 27 4 To Edward White, for Net Pro- ceeds of 25 Bales of Cotton, and 50 Bags of Pimento, as ^S.B.f.4 954 15 9 1089 18 JOURNAL. (Set. III.) nr (\2) LONDONy February 1804. Edward White Dr. to Insurance. For Cost of insuring Goods, per the Faithful, Sul livan, from Jamaica to London, at 6 Guineas per Cent, to return 1^ for Convoy and Arrives viz. Capital insured 35001. at 61. 6s. per Cent 220 ; 10 Insurance Dt. to Sundries. For Premium on the above, at 6 per Cent. To Nicholson and Hope, 1000 60 To Smithson and Co 1000 60 To Peter Bonham 1000 60 To George Holland oOO 30 To Commission at b'^Cent. on Prem.lO 10 11 18 18 4 4 15 19 Adventure from Grenada (in Company loith Peter BonbanT and George Holland each i Share J, Dr. to Stindries. To John Riddle, for AmountT .^ of Invoice J To Insurance 34 2 6 1260 11 6 220 10 Insurance Dr. to the London Assurance Company. For Premium on 13001. at 2} Guineas ^ Cent. 1294 14 34 Hemp Dr. to Sundries. For Cost of 42 Tons received per the Hannah, Cole, from I'efersburgh, viz. To Panton& Abram,for Amount Y,Q^^ ,^ p of Invoice. / To Charges on Merchandize ^\>?i\d\ i^ ii o 19 110 19 at landing HoRNE and Jones Dr. to Hemp. For Amount of 33 Tons, at 341. 10s. Ton, at2Months 1 1221 1138 ii AsHFORD and Son Dr. to Merchandize. 3 jFor Amount of Goods sold them, as ^ B. P. 564 10 10 118 JOURNAL. (Set. III.) LONDON^ February 1804. (13) 25 19 l(i George Broker Br. to Sales of Sugar, in Company. 55 16 18 3 19 p 10 ForAmountofoOHds.Wt.Nt. 607 3 14 at 10s. 4^ dot. } Sales o/ Sugar, m Company, Dr. ta Sundries, viz.* To Jdventurefrom Grenada 1294 To Charges on Merchandize y\^2i\&'\ for Freight, &c j To Commission on 24311. K)s. the Amount of Sugar, at ^ Cent To Profit and Loss for ray ^ Share S4 To Peter Bonham, for his ^ Share 84 To George Holland, for his \ Share 84 ■Os."| 14 823 5 6 60 la 9 2431 10 *> • This Account (which is here supposed to be taken from a Sales Book) affords a fufficier.t example of a Partnership concern.— The perspicuity and precision of this method will appear striking, when contrasted with the tedious and complicated forms given in the old systems of Bookfkecp- ing; the universal practice at present is, (o keep a Furtnev hip Account as if it belonged to one Per/on only ; to open a separate Account for each Fartntr, like that of any other Indi- viduai; and to divide the Profit: or Lotser according to the Terms of Copartnership. 2431 10 JOURNAL. (Set III.) (119) (14) J 1 1 6 5 10 15 L9 OQ 98 23 2 24 16 31 5 — — 1 3 5 10 17 18 21 4 3 16 20 25 26 30 31 29 1 30 3 31 15 i LONDON, March 1804, Cash Dr. to Sundries. For the following Sums received this Month, a^per C. B. To Funded I'roperty so\d,2000\. 4 ^Cts.ntl 9 1 To Bills Receivable. No. 1 8 10 11 9 4 5 ... 8o ...370 ... 260 - . - 3(34 .-.310 ... 250 ...310 6 240 14 10 10 1595 To Farm in Kent To Sales of Cotton, ^ the Martha. Vo Debentures , S u N D III Es , Drs. to Cash, For the following Sums paid this Month, as fer C B Bills Payable No. 6 310 10 8 .. 12.. 14 210 4 550 272 400 320 Charges on Merchandize ^ Mar- ^ ^ tha, from Grenada / 15 .^ Sales of Osnaburgs . .^ IV.SfMaryJovBam. .^ Nereid Joy Leghorn . .^ Success, for Dundee .^ Anney for Maderia. . .^ Sally, for Dublin . . .^ Hiberniay from Dublin .for Su7idries not charg- ' ed to any otlier Acct 6 7 4 39 6 Q 9 18 12 2 15 3 ;} 79 10 6 Funded Property, 35001. in the 3^ Cents, at 6^ Merchandize for Teas paid at the India House House Expences erl.B. p. 10. 3 iTo Merchandize 212 3 To Charges on Merchandize 7 4 ,To Commission. -- 5 4 To Insurance 35 8 9 18 2 10 11 17 3 261 15 Journal. (Set in.) 121 (16) LONDON^ March 180 1. 21 25 14 26 30 14 Wilson ^ Vanelli, Dt. to Sundries. For Amount of Invoice ni Pef>p«r, per the Nereid, iof Leghorn y zs per 1. Ji. p. ii. To Merchandize 180' 1 4 9 To Charges on Merchandize 4 2 I o Commission - 4 10* 8 1 o Insurance * IS 17 1 Wilson ^ Bell Dr. to Sundries. For Amount of Invoice of Porter per tht Success, (ot DuttdiCi iS par I. li. p. 13. To Merchandize 104 10 To Charges en Merchandize 12 8 To Commission «. 3 4 8 Vo Insurance 2 15 5 MiLMAN and Son, Dr. to Sundries, For Amount of Invoice of F/ax, per the /inn, iov Madeira, d.&per 1. P> p. 13. To Merchandiiie 030 Vo Charges on Merchandize 39 2 To Commission -.-- 20 9 To Insurance , 32 5 9 Peter Holmes, Dr* to Sundries. For Amount of Invoice otTeat, per the Sally for Dublin^ as per 1. B. p. 14. To 71/ er"c/iancf?ze (less Drawback) ... 213 U To Charges on Merchandize |k,0 15 2 Fo Commission ---.. 1 2 To Insurance 12 214 111 721 10 232 19 10 122 JOURNAL. (Set Til.) 24 9 16 24 16 3 4 IS 24 11 16 10 il6 11 16 14 LONDONy March 1804. Wentham a7id Hull Dr. to Sales of Sugar, ^ the Martha. For Amount of 5 Hhds. at 3 Months, as ^ \ S.B. f.5 / Sales of Sugar ^ the Martha Dr. to Sundries To Charges 071 Merchandize 72 18 9 To Commission 5 15 11 To John Biddle, for Net Proceeds \ , . . « . on 5 Hhds. as ^ S. B. f. 5. j» ^^^ ^^ ^ Sales of Cotton ^ the Martha, Dr. to Sundries. To Charges on Merchandize . . 73 16 3 Fo Commission 20 6 To John Biddle, for Net Proceeds! ^^.^ « n ofl6Bales,as«^S.B.f.6. / "'^'' ^ ^ Geokge Holland Dr. to Sales of Osnahurgs. For Amount of 63 Pieces, at 14 Months, as\ ^S.B.f.7 - / Sales o/*Osnaburgs Dr. to Sundries. To Charges on Merchandize 6 9 1 To Commission - 10 9 3 To Wilson and Bell, for Net Pro-*) ceeds of 63 Pieces, as ^ S. B. > 244 12 11 f7 J (17) 2311S 231 18 789 261 11 261 11 JOURNAL. (Set III. 123 (18) LONDON, M&rch 1804. l( l( 30 U 1 I 1 3 " 7 " 14 27 ] 25 ) - George Holland Dr. to Sales of Linen ^ the 5 ITihemia, For Amount of 41 Pieces, at 8 Months, as ^\ S.B. f.8 / 79 1 79 1 350 10 8 r -2004 S . 510 ( 3 i Sales o/ Linen ^ the Hihernia Dr, to Simdrws, S To Charges on Mercha'ndize 2 3 4 9 To Pnyfit and I^ss for Commis-^ sion, Insurance from Fire, and > 4 14 9 Advance of Money, &c J 4 Toreter Holmes, for Net Proceeds,! r^o o o as . io Sundries, ~ For Goods bought this Month, as fer Bills o Parcels, () To Wentham and Hull, at 2 Mths. 1750 c LO To Home and Jones, at 4 Mths. 254 2 £ !^ L2 Wanstead and Gilt, Dr. ^o Merchandize, 3 For Amount of Goods sold them at 2 Months, 1 asc^B. P J ) J 24 JOURNAL. (Set. HI.) LONDON, March I8O4. (19) 98 28 8 10 i 4 12 Sundries Dr^. ro Insurance, For Return of Premium on 33001. ins'ired Feb, 1, on Go ■iA^ r>uiKiri.s March 31 . . By Balance , 20 285 \ 3298 4879 8948 1998 1 7 5 5 II Contra Cr. IVFarch I Maich 31 f The r.edsjrr, thnuyh urii'orm in principle, is va:ifMis in ariai^eiTT^-i.r.— Some Book-keep- e'S omit the colu .uf, as the Int/ex conta'ns the farne references.- Others comp.'s«- ihe Dr. aiif' Cr. sides on one nag;', v.it'i the Title between, a"; in the following txample (Fol. 2); but the above inetliod, of njao; 'u the H; and r on opposite pjiges, is the j ost gt neral, as well as the most simple and convenient form. 130 o c c 6 W 5s. rf G^ O O CO G' I 2 2? ?3 CO rt* 00 CO -^ 0» C» 7:1 _! »-' s^ ^ rf g3 O O o o O t* UO -H CO :2 I s CO CO 6 w q rt S o c o c o o »0 CO 'JoO o o f-H 00 131 ^ 1 ,o 1 1 ""O 1 c o ■^ 1 r^ 1 ,-i --^ 1 o> GO O W 1 'Tfl CO G? •O •o »-^ — i CJ rr CO 1 « -s 1 1 \ • 1 \ I I \ ' ' \ 1 \ 1 I \ 1 1 \ 1 • \ • ■ \ (U \ • o \ ^ ^ G ^ ^ 05 "^ « 6^ Z C^ . c^^ o 1 o CO • • -1 1 1— 1 t^ —I u n < Q) CO < ll CO , o 1 o o o = OO 1 O 1 C <5 'O O 1/5 — < 1 — ' 1 CO f-H r-H 8i? Of C CO rlH QC D -^ O' -^ Ci »o O vO ^ CO .CO .^ r— 1 t—t T— 1 r— 1 Ci -H 1 • <^ ! • '^ I • o I 1*^ • •'Q . • e -s-s 111 V; C3 ?^ ry^O ^ t^oi; q o o C) o o ,o r-^ 00 r- CO 1 -H :o r-l C -< o> CO CO c-f c s !5 — 'r':^' ^ 132 LEDGER. (Set III.) (3) Merchandize Br. Jan. 1 1 Jan. 18 7 March 30 14 3118 ToStock To Samuel Lightfoot To Casli To Sundries 1(V 6 Charges on Merchandize Dr. Jan. Feb. . . March . . 3 To Cash 8 To Cash 14 To Cash 25P 118o 293 1738 (3) LEDGER. (Set. III.) 13S Contra C/ Jan. 1 5 1- o 1.^ o 31 (i Feb. 93 / March !(< lo 21 l(> 25 It) Q() 10 3r s '■) 1\ )S 31 If.' By William Pember^ou By William Lanios By Wilson and Vanelii By Sundries By Debetitures By Ashihrd and Son . . . By William Chulmley . By Wilson and Vatieili By Wilson and Bell — by Mill man and bon - . By Peter Molmes . By VVansttd and Giii.. By Der^eiil iires Bij Balan<^e 1 ! .14 10 128 036 213 3386 13-^ 6(i4 21'.' 186* KUjI (i3(* i 213! I 610 ]-!(> 446 760y iO 10 5 11 O 9 o 8 Contra Cr. Jan. Feb. 20 March Iti 21 26 26 30 4 24 11 30 3 31 1 6 12 6 16 6 31 () 23 10 3 10 6 11 1 1 lO By By Ky By By By By 12 By 13 By l.>By lOBy l6By l«By I" By 17 By 17 By 17 By 18 L-iy 18 By William Pemberton William Lamos Wilson and Vanelli Sundries <^ Hope Sales ^ \ancy ditlo ^ Swan ditto ^ Dolphin ditto ^ditto Hemp Sales of .Swgar in Company William Chulmley Wilson and Vanelii Wilson and Bell Milinian and Son Peter Holnu s .._ Sales ^ Martha ditto Sales of Oi^iiibimys Sales ^ / < ibenua William Ptmberton Frojit and Loss^ 1 H) 16 l() 19 \(^ 7 8 14 () 14 16 16 i6 16 8 19 li 44 190 32 20-1 107 16 823 7 4 39 6 72 73 6 Q 79 16 13 8 o 6 9 8 11 9 12 10 !6 o 17 4 11 3 6 6 18 o o 12 8 2 16 2 IS 9 16 3 9 1 3 4 10 6 2 9 13'^ LEDGER. (Set III.) (4) Com MISSION Dr. March 3l To Profit and Loss 19 34219 Insurance Dr. Jan. Feb. Feb. 2 March 28 March 31 1 12 1'^ 19 19 To London Assurance Company . . To Sundries To London Assursuice Company - - To Edward White - To London Assurance Company . - 15 141 6 22010 34 5210 96 8 544^7 11 (> (4) LEDGER. (Set III.) 135 Contra c 7\ Jan. 1 5 12 5 15 5 31 (i Feb. 4 10 3 10 6 11 14 11 1 12 2,5 13 March lO" 15 21 16 25 16 26 16 30 16 24 17 11 17 7 18 1 i By William Peiiibertou By William Lamos By Wilson .and Vanelli . - By Sundries By Sales «^ Nancy By ditto ^ Simn By ditto cp Do/pfim By ditto c^ ditto By Insurance By Sales of iSiigar in Company ._ By William Chulmley By W^ilson and Vanelli By Wilson and Bell By Millman and Son . - By Peter Holmes By Sales =^ Martha By Sales of Osna burgs By Charles Le Coin , . . i IS 8; 4 6\ If) 11 8 4 17 ] 104 S 18 If)! 16: 5 14 16 11 W 16* 27 4 4l 10 10 161 60 15 7! 5 10 «; 4 16 h: 3 4 6; 20 9 14| 6 1 i6\ 25 16 16' 10 () 6 8 19 342 2 4 o 9 9 10 5 U 9 11 8 S O 2 5 3 Contra Cr Jan. 1 5 12 5 15 5 31 6 Feb. 1 12 2 12 March 16 15 21 16 25 16 26 16 30 16 28 W By William Pemberton By William Lamos By Wilson and Vanelli By Sundries , By Edward White By Adventure from Grenada in Co. By William Chulmley « By Wilson and Vanelli By Wilson and Bell By Millman and Son By Peter Holmes , By Sundries 3 2 11 1 6 3 15 123 8 5 2C0 10 34 2 6 35 17 3 18 17 1 2 15 5 32 5 9 6 12 6 52 10 544 17 5 136 LEDGER. (Set III.) (5) Bills Receivable Dr Jan. 1 Jan. Feb. . . March - - 11 To Stock . , 4 To Sundries OjTo ditto \o To ditto 14(J8 9377 5141 \\\1\ Jan. Feb. . March ..14 31.. Bills Payable ToGash Fo ditto To ditto To Balance Dr, 1! 24S2 4 1 1 063 10 1 '20()2 16 20 727o U 13384 6 Debentures To Stock To Merchandize To ditto Dr, Jan. 1 Jan. March 31 402 138 140 741 10 \ (5) LEDGER. (Set III.) 137 Contra Cr. Jan. Feb. March 3 31 By Cash By ditto By ditto By William Pemberton By Balance 1 1 1303 10 1 1504 10 1 2410 14 8 ! 350 90 5643 10 11212 4 Con TRA Cr, Jan. Jan. Feb. March By Stock . . By Sundries By ditto... By ditto - . . 2608 2570 2515 5^90 13384 Contra Cr. Jan. Slj 3 March 31 14 31-.L. By Cash. . . By ditto - - - By Balance 1 1 20 I9d 135 410 10 10 9 IC) 741 138 LEDGER. (Set III.) (6) MiLLMAN and Son, Oporto Dr. Jan. 1 March 26 1 To Stock .. 16 To Sundries 572 721 1294 Charles Le Coin, Paris Dr. Jan. 1 March 8 7 31 To Stock To Bills Payable To Commission - To Balance 589 1600 8 237 2235 14 W. Lamos, Bilboa Dr. Jan; 1 1 5 To Stock 1 428 677 12 6 18 12 To Sundries 4 1J05 4 ' (6) LEDGER. (Set. III.) 139 Con TR A Cr. Feb. 4 March 31 ]0 By Sales ^ Nancy . - By Balance 14917 1144 9 1294 Contra Cr Jan. 3 4 By Bills Receivable. March 7 15 By ditto 2150 2235 14 7 14 Contra Cr, Jan. 25 4 March 31 . . By Bills Receivable By Balance 800 305 1105 140 LEDGER. (Set III.) (7) Panto N and Abram, Petersburgh Dr, Jan. 1 March 13 To Stock To Bills Payable 572 830 1402 19 W. Chulmley, Hamburgh Jan. 1 March 16 31 iTo Stock. . loiTo Sundries. . . To Balance . Dr. 90 310 261 570 1 114210 E. Taverton, Amsterdam Dr. 3 an. 1 To Stock 216 11 (7) LEDGER. (Set UI.) 141 Contra Cr, Feb. 11 March 31 12 By Hemp - . By Balance 19 20 1204 198 1402 12 19 Contra Ck Jan. 19 March 24 By Bills Receivable By ditto 582 560 1142 10 10 Contra Cr. March 3 1 By Balance 20 216 11 142 LEDGER. (Set III.) (8) W. Pemberton, Naples Dr, Jan. March 3 To Stock . . . To Sundries To ditto 721 143 350 1216 Wilson and Vanelli, Leghorn Dr, Jan. 1 15 March 21 To Stock - . To Sundries To ditto - . . 570 221 214 1006 10 Smith SON and Co. London Dr, Jan. 29 Feb. 3 6 March 28 To Bills Payable ... To Sales ^ Nancy . To ditto ^ Dolphin To Insurance 5 16 16 4 820 218 478 15 5 1 18 1532 5 (8) LEDGER. (Set III.) 143 Contra Cr. Feb. 1 By Bills Receivable o 20 920 Q96 1 March 31 By Balance fi 1216 1 5 Contra Cr. Feb. 3 10 -4 _ By Sales ^ Swan i 16 20 158 847 12 17 10 March 31 By Balance ,5 1006 10 3 Contra Cr. Jan. 1 Feb. 1 March 31 By Stock . - . By Insurance By Balance lU LEDGER. (Set III.) (9) Wentham and Hull, London Dr. March 4 31 17 To Sales ^ Martha To Balance 16 90 231 2234 2466 Nicholson and Hope, London Dr, March 28 31 19 To Insurance ..--- - ' 4' To Balance 20! 15 286 301 10 10 Peter Bonham, London Dr. Feb. March 28 11 To Sales ^Do/M?'* 1 9 To Insurance 86614 15 881 14 (9) LEDGER. (Set III.) 145 Contra Cr. Jan. March 14 By Stock By Merchandize 716 1750 2466 Contra Cr. Contra Cr, Jan. Feb. March 3 1 By Stock By Insurance By Sales of Sugar in Co. By Balance - 371 60 84 365 S81 14 46 LEDGER. (Set IIL) OO) HoRNE and Jones, London Br. Feb. 19 12 To Hemp 18 Il38;i0 George Holland. London Dr. Jan. 2 March 1 1 30 28 To Bills Payable To Sales of Osnaburgs To Sales of Linen ^ the Hihemia To Insurance. 400 261 79 7 748 Wansted and Gill, Leeds Dr. March 25 510 (10) LEDGER. (Set III.) 147 Contra Cr. Jan. I March *^1 March 31 By Stock By Merchandize By Balance 572 2o4 311 1138 18 9 2 5 s'lo 10 Con TRA Cr. Jan. 1 Feb. 1 To March 31 By Stock By Insurance By Sales of Sugar in Co. By Balance 421 30 84 212 748 11 1 Contra Cr. Jan. 1 March 31 By Stock. . . By Balance 1 20 205 304 18 510 148 LEDGER. (Set III.) (10) Henry Stanton, Sheffield Dr, Feb. 27 To Cash. 17411 Gibson and Carr, Birmingham Dr, Jan. 16 Feb. 15 9 To To Bills Payable I 5 ditto 5 300 210 510 Ash FORD and Son, Manchefter Dr, Feb. 23 12 To Merchandize 56410 (H) LEDGER. (Set III.) 149 Contra Cr, Jan. 1 By Stock 174 11 Contra Cr. Jan. 1 March 31 By Stock - . By Balance ll 94 1 510 Contra Jan. 1 March 31 2 By Stock . . By Balance 1 20 Cr. 50 LEDGER. (Set III.) (m Winter and West, Jamaica Dr. Jan. 31 Feb. 7 To Sundries To Bills Payable 40318 1700 2103 18 Hampton and Co. Jamaica Edward White, Jamaica Br, Jan. 31 6 - - 1 To Sundries 189 294 J 18 4 March 31 To Balance -.. ....... ^^0 S 484 Dr. Jan. 31 Feb. 1 March 31 To Sundries - To Insurance To Balance (552 220 730 1603 (12) LEDGER. (Set III.) J5l Contra Cr. Jan. 1 Feb. 5 March 31 By Stock By Sales ^ Dolphin By Balance 5.06 1335 2103 18 Contra Cr, Jan. Feb. 17 1 5 173 310 10 10 484 Contra Cr. Jan. 1 Feb. 17 26 March 28 By Stock By Bills Receivable By Sales ^ Dolphin By Insurance 5: 16' 4' 316 280 <)54 52 1603 !0 152 LEDGER. (Set. III.) (13) James Prime, Jamaica Dr. Jan. 31 March 31 To Sundries To Balance . 20 652 ^29 881 Edmund Connor, Jamaica Dr. Jan. 31 March 31 6 Xo Sundries ........ 763 286 5 12 IS 11 To Balance ................... 20 1 1049 \ Richard Broadley, Jamaica Dr. Jan. 31 March 29 To Sundries, for Goods ^ the Hope To Adventure to Jamaica, my l\ Share of Net Proceeds / (13) LEDGER. (Set III.) 153 Contra Cr. Contra Cr. Jan. 1 Feb. 17 By Stock By Bills Receivable 72118 398 1049 18 Con TRA Cr, Jan. 1 Feb. 17 March 31 By Stock By Bills Receivable By Balance 216 174 720 nil 9\ 16 5 154 IB ^ ! o 6)-cc ■ 1 o 1 y-\ i 1 — 1 •^ 2 1 C CO CO 1 2 1 >«' G< r-H C^ Tt 1:^ J p— 1 G-> t^ Tt< CO 1 CO ^ OJ CO ( CO »-H CO o 6 6 -. 0^ — '^\ I 1 1 S-, 1 \ i 1 • ^ ' \ ' s • ^ ' \ ' s ' ^ ' \ ' ^ 1 O) , \ ! ^o 1 j ^ i \ ' ^ • • '^ 1 2 <» \ PC'S \ 1 . o 1 c o 1 ^ 1 P| 1 K, o a 1 -• 1 o ^ ""^o" Q 121 I-H I-H « 1— ( \ -H 1 §r O) O CO CO W M Tl^ -H s w CO Ol 00 hJ > p • Oi o • < » r— ( Ph 1 (^ • \ ^ • \ o , a; : \ ^\ \ Kfi \ ^ ^ ■ \ 3 • \ O^ ^'ts E? \ O s: ^i c« \ «+i 55 rt ^ • t! C C3 1 ^% 155 Pi °= 1 - 1 1 6 H OS h cc o o^ 1 CO 1 1 •" 2 1 i^ 1 1 0» O 'O ^ 1 CO '^ ,- C^ i 1 CO 00 ^C "2 1 — 2 ! a; C Q C O By Stock By Sales of Osnaburgs By Cash By ditto By Sales -f the Nancy " 0» t^ l-H CO 00 c 1 00 Jan. 5 Feb. 18 Feb. 23 c. o, 1 ^ , !>. f— CO CO Gi 1 e* 1 CO '^ r— 1 :r CO Of r-H 00 CO X :8 r-i Oi j i\ 5© OS y \ To Cash To Prop and V CO ; > 1 • 1 Oi CO 0> CO c2^ 166 LEDGER. (Set III.) House Expences To Cash To ditto To ditto... , (15) Dr. Jan. 31 Feb. 28 March 31 68 57 oO 176 19 Samuel Lightfoot, London Dr. Jan. 21 March 28 4 To Bills Payable 15 To ditto 1050 2000 3050 London Assurance Company Dr. March 31 To Balance .-.i20 (13) LEDGER. (Set III.) 167 Contra Cr. Contra Cr. Contra Cr, Jan. , Feb. 2 March . . By Insurance. By ditto By ditto 141 34 96 271 2 8 17 11 Q 158 LEDGER. (Set III.) (16) Lottery Tickets Dr. Feb. Fo Cash 37 10 Rent and Taxes Dr. Feb. 28 To Cash.-- 1 105 12 O Sales, General Account Dr, Feb. 4 14 26 9b March 24 11 30 To Sundries ^ the l?— Constables attend the ship till unloaded, to prevent plunderage. Landivaiters — are allowed by Owners of Ships a Breakfast for each Vessel, and also are paid for the Weights they deliver at customary payment. Tradesmen's Bills — consist of Sail makers, and others employed in fitting out, the Ship's Stores included. Sundry small Bills and Expences paid by the C.iptain. River Pay — an Allowance made to tha Sailors, with an Advance of a Month's Wages, Disbursements — from River out and home; Advances for the Sailors; Stores; fresh Meat in Port; Captain's Expences in the West Indies 3 Negro Hire; Drog- herage, &c. Portage Bill — Amount of Sailors' Wages for the Voyage. Captain's Primage — on Fi eight out, t^ per Ceat. Ditto ditto home, Hhds. and Balob, Gd. ; Casks, 4d. ; Bags, 2d. On Cotton carried in the Cabin the Captain is allowed Half Fteight. Husbandagcthe Managing Owner's Allowance or Commission. 176 SHIPPING ACCOUNT* Dn Owners of Ship Charlotte, 1800 , August 29 Nov. 11 21 Dec 22 1801 , April 1 July August 31 13 Sept. Octobei 19 8 To Cash, Paid Tonnage Duty To ditto, paid Entry, Clearing out, and Light Bills. To ditto, paid Pilotage To ditto, paid Capt. Sims's Order to Beazley 28 To Premium, &c. on 2,5001. insured on Freight, St Vincent to London To Cooperage Account 1799, oinitte-l To Cash, paid Premivim on 50001. insured against Fire To ditto, paid Reporting, Light, and Tonnage Duty 1 inwards .--.-._-. 3 To ditto, pa'd Constable Hire To ditto, paid King's Weighers To ditto, paid Premium on 50001. insured against Fire To ditto, paid Landwaiter's Breakfast To ditto, paid Landwaiter's Book To ditto, paid William Anderson Cooperate To ditto, paid Trade on Tonnage.--- . — ,. To ditto, paid Tradesmens' Bills, per List To Captain Sims for the following Disbursements : Riverout 201 17 8 River Pay and Month's Advance 234 17 4 Disbursements from the River out? ^^^ „ ^ and home 5 Amount of Portage Bill 711 8 To Captain Sims for Sundries, viz. Primage on House Freight out. ..... 49 10 Ditto ditto home.... 19 3 Privilege ditto, S8311. 15s. 6d. a 27 per Cent. J Half Freight of 30 Bales of Cotton. - 45 76 12 To Husbanda.^e on 48811. Us. Sd. Total Freight, at 2 per Cent To Commission on 14091. 3s. 9d. Cash, &c. paid, at ^ per Cent... To Postage and Stamps To a Reserve credited 9th Voyage To Owners for Balance, viz. Our 1- 4th 323 John Wilson .3-1 6ths 243 15 James Kerr ...3-16ths 243 15 J. and LNixonl-16ih, W. Smith.... l-16th F.Brown l-16th, E.Hill l-16th. R. Christie.. -l-16th, 81 81 81 81 81 W. Wheeler -1- 16th ,. 81 Errors excepted. London, 28th Oct. 1801. 24 21 21 35 146 38 10 41 16 10 1 3 22 6 11J3 1782 190 97 6 55 1300 4995 SHIPPING ACCOUNT. 177 in Account Current with A. B. S^" Co. Cr. 1800. Oaober 30 lyoi. Ftb. 23 April 1 O ji • — 1900 ^ .^. ^14900 S ; 179 STATEMENT FOR GENERAL AVERAGE. If o£:i4900 : c£500 : : c£lOO : £3 7s. Id. STATEMENT FOR PARTIGULAR AVERAGE. UjEQOOO (Value of SOHhds. of Sugar) : c£250 : : o£?100 ; £lQ 10s. The Insurers, therefore, will have to pay £3. 7s. Id. ^ Cent, for General Average on «£ 14900. the Value of Ship, Cargo, and Freight ; and for Particular Average, £12. 10s. ^ Cent on o£;2000. the Value of the Sugars*. In time of War, it is customary with the Insurers to stipulate for a certain Premium, but they agree in casethe Ship sail with convoy, and arrive, to return so much ^ Ct.; and this return is usually made when the Averages (if any) are settled. Now, suppose the Premium on the above 80 Hhds. of Sugar were 8 Guineas ^ Cent, to return 3 ^ Cent, for Convoy, which took place, the adjustment for Average and return of Premium would stand thus : £, s. d. General Average on o£:2000. at of 3 7s. Id. ^ Cent. 07 1 8 Particular Average, £^50. 250 Return of Prem. on <£l7oO. (the Value of Sugar thatarrivedj at 3 ^ Cent 52 10 The Underwriters must pay the Assured 369 11 8 Which is c£l8. 9s. 7d. ^ Cent.— For, If .£2000. : i:3e)9. Us- 8d. : : oflOO. : £\8, 9s. Id. * The quantum of Damage on Sugars shipped is estimated, withqut paying any re- gard to the Invoice from the West Indies, as follows: Cwt. Of 80 Hhds. of Sugar, the 60 which were landed free from Damage weighed at the King's Beam, Gross 840 20 Hhds, therefore, on an average, weighed Gross ., i!80 But the Gross weight of the SO Hhds. that were much damaged, was.. 155 Deficiency, or Net Pamage 125 Cwt. qr. lb. 1 Hhd. of the 60 undamaged, was..,,.., 14 Tare at the King's Beam 12 Net Weight of each Hhd 12 2 And as the Insurance was made at i?25. per Hhd. say. If i2 Cwt. 2 qrs. ? £25. n 125 Cwt. : £2^a, to be paid by the Underwriters. 180 FACTORAGE ACCOUNTS. Various other Forms of Accounts might be here added, which belong to particular kinds of Business, but their arrangements de- pend, in some measure, on the fancy of the Book-keeper. It may, however, be proper to notice a form which is generally observed when two Merchants reciprocally act as Agents and Employers to each other. Such transactions are distinguished by the mark k \ a or m ( a meaning his Account^ or my Account. For instance, the Account of John Biddle, in the foregoing Ledger? (Fol. lU) might have been opened under two separate heads: — Thus the Sugar and Cotton which I sold on his Account might have been inserted under the Title, John Biddle, h \ a, and the Adventure from Grenada, which he executed on my Account, under that of,' John Biddle, m | a. These distinctions are peculiarly useful in cases of Bankruptcy; for if an Agent fail, the Employer can claim and recover his Con- signments, or any Balances which may be due upon them ; but if the Employer himself become insolvent, all such Property must be given up to his Creditors. When Merchants and their Agents reside in different countries, their Books are mostly kept in the currency of the places of their respective residence. — Inner columns are, however, allotted in the Ledgerforinsertingand comparing the different Currencies whence an Exchange Account is formed, and the Gains or Losses of this Account are finally carried to Profit and Loss*. See Page ^13. ♦ Exchange being a, subject necessarily connected with Merchants' Accounts, a short syi-tem is here annexed, which may be considered the more useful, at this time, as it comprehends the alterations recently made in the Exchanges of France, Hol- land, and Italy. As the following Tract is merely intended for School practice, it is rendered af con- cise and simple as the nature of the subject would allow. Those places are chiefly noticed which have a direct Exchange with London, and which are comprehended in Lloyd's List ; Person?, however, who understand what is here explained may easily inform themselves of any further particulars by consulting larger works, such as The Negociator*: Magazine, the British Negociatory Lex Mercatoria, (5lh Edition, by Morti- mer,) TesJbemachtr'x Tables, Eevjicke'i Tables^ &c. 181 APPENDIX, ON EXCHANGES. Exchange is the paying or receiving of money in one country for its equivalent in the money of another country, by means of Bills of Exchange. It is here divided into three parts. I. On Bills of Exchange. II. On the Monies of Exchange, with Rules for calculating their comparative Value. III. On Arbitration of Exchanges, with Rules for drawing and remitting to the greatest advantage. PART I. ON BILLS OF EXCHANGE. A Bill of Exchange is a written Order for the Payment of a certain sum of Money, at an. appointed time. The Person who draws the Bill is called the Drawer ^ and he to whom it is addressed the Drawee, who is also called the Accep- tor, when he engages to pay the Bill ; and the Person to whom it is ordered to be paid is called the Payee*. There are other Per- sons occasionally concerned in a Bill of Exchange, such as the Buyer, or Remitter; the Seller, or Negociator; and the Holder, or Possessor. When the Holder of a Bill disposes of it, he writes his name on the back, which is called indorsing, and every Indorser is a se- curity for the payment. The Payee should be the first Indorser ; and if he indorse the Bill in favour of any particular person, it • See p. 59 Bill 2 — G. Hottand Is the Drawer, G. Binns the Pajee, and A. B. the Drawee and yicce^ior. 182 is called a Special Indorsement, and the person to whom it is thus ^lade payable is the Indorsee. When a bill is presented for acceptance, it is generally left un- til the next day, and the common way of accepting it is, for the Drawee to write his name at the bottom, with the word accepted; but any other writing by him or his clerk, which does not imply a refusal, is deemed a legal Acceptance*. If a Bill be refused acceptance, it is put into the hands of a No- tary Public, and noted for non-acceptance; and if an accepted Bill be refused payment, it is noted or protested accordingly, and returned to the Drawer, by which he or any of the Indorsers are liable to pay the Bill, with all Costs; but if the Holder make any unnecessary delay in returnining it, he can sue the Acceptor only. The Term of a Bill varies according to the agreement of the parties, or the custom of the countries: some Bills are drawn at sight, others at a certain number of days after sight or after date, and some are drawn at Usance. Usance is the usual Term of Bills between certain places, such as One, Two, or Three Months after datet, and Double or Half Usance means Double or Half the usual time. Days of Grace are a certain number of Days granted after the Term of a Bill is expired ; in Great Britain and Ireland, Three Days are allowed, except for Bills at sight, which must be paid when presented. 7'he Par of Exchange J is the intrinsic Value of the Money • For the Laws of Bills of Exchange, see Kyd, Edition Sd. f When the Term of a Bill is expressed in Months, Calender Months are under- stood. — Thus, if a Bill at One Month be dated Jan. 1, the Term or Month expires Feb. 1 ; and if the Bill were dated Jan. '^S, 29, 30, or 31, the Month would expire on the last day of February j but on Leap Year, allowance must be made for the intercalary day. ■\, The Par of Exchange is not, in general, accurately fixed, on account of the fre- quent alterations made in the Coins of different Countrie?, and likewise the fluctua- tion in the comparative Value of Gold and Silver j the Par is, perhaps, best deter- mined by the Estimate of Merchants ai any particular time ; but Books on the sub. ject are geneially confused and contradictory, which is frequently owintj to the want of distinguishing between Intrinsic and Political Far» The Pars here given (P. 185 and 19.5) though taken from the best authorities, are not all considered perfectly correct, but they are sufficiently so to shew whether the Course of Exchange is for, or against, a place. 183 of one country, compared with that of another country, with re- spect both to the Weight and Fineness.* The Course of Exchange is the current Price of Monies of Exchange, as established between different places. This Rate or Price is seldom at par, but fluctuates, according to the cir- cumstances of Trade, or the demand for Bills. By the operation of Bills of Exchange, reciprocal Debts, due in distant places, are discharged, without the risk or expence of remitting Specie. Suppose, for example, J. of London is Creditor to J5. of Paris 1001. and C. of London Debtor to D. of Paris 1001. both Debts may be discharged by a transfer of Debtors and Creditors, thus, A, draws a Bill on B, which C. purchases and remits to JD. Here C. of London pays A* of London, and li. of Paris pays /). of Paris ; and in this manner equal Debts may be settled without sending Money from one place to another. But when the Debts between two places are unequal, the ba- lance must be remitted either in Money or Bills; and as the latter mode is the most convenient* the increased demand for Bills en- hances their price; or, in other words, raises the Course of Ex- change in favour of the place w^here the balance is to be sent, and vice versa. Hence the Fluctuation in the Course of Exchange arises from the Balance of Remittance ; and this is mostly caused by the Ba- lance of Trade, which is the difference between the commercial Exports and Imports of any one place with respect to aiiotlier — for instance, if the Exports of London to Paris be lOOl. and her Imports from the same place 9001. the Balance of Trade is against London, and in favour of Paris. Now, if London send the Balance to Paris in Bills, the de- mand may be supposed to raise their Price ; and if the Par be- * By Fineness b understood the proportion or pure Gold or Silver, aiid of Alloy in any Coin. In England the Standard of Gold is 22 CarraUfine : that is :22 Parts, of. pure Gold and 2 of Copper, the Carrat being the 24th Part of the Weight. The Standard of Silver is ll oz. 2 dwts. of pure Silver to 18 dwts. of Copper, making together One Pound Troy. This Standard is said to have been fixed ii>. the Reign of Ricliard I. by Persons from the Eastern Parts of Germany, called EasterlingSy and hence the word Sterlin^^ which is now applied to all lawful Money of Great Kiiiaiii, 184 tween those places be 24 livres for £l. Sterling ; but on account of the scarcity of French Bills, the Course of Exchange is only 23 Livres; in such case, London loses by the Remittance, and instead of lOOl. must pay 1041. 6s. ll^d. for as 23 : 24 : : 100 : 104 6 11|. When the Course of Exchange runs high against any place, it becomes the interest of individuals there to remit their Balances in Specie, instead of Bills. Such Remittances tend to reduce the Price of Exchange nearer to Par ; they are sometimes, however, considered injurious to the Country from whence they are made, and are therefore occasionally prohibited, though Remittances in Bullion are always allowed. #! PART IL MONIES OF EXCHANGE, Rules for calculating their comparative Value. Monies of Exchange and of Account are mostly the same ; in some places they are imaginary, as the Pound Sterling in Eng- land, and in others real, as the Shilling or Penny. Monies of Exchange may be also distinguished into certain and unceTtaiUy according to the custom of countries : — thus England gives a fixed sum (the Pound Sterling) for a variable sum of the Money of France, Holland, Hamburg, and Venice, and she gives an uncertain or fluctuating Price for a certain Sum or Coin of the Money of other trading Places ; such as the Piastre of Spain, or the Milree* of Portugal. * It may be here observed, that English Writers on Exchanges do not always spell the Foreign Monies after the Foreign manner, and they even frequently differ among themselves. In the present Tract, the most general mode of English Spel- ling is adopted* 185 Tlie following TABLE shews the Course of Exchange, accord" ing to Lloyd's List, Sept, 5, 1804, and also the Par, Usance, and Days of Grace, with respect to London, . LON DON ON Amsterdam Hamburgh- Paris Madrid Leghorn Naples Genoa Venice . Lisbon DubUn Course of Exchange. 37 6 35 10 25 9 34 49 38 45 59 Gl Par. 36 7 34 8* 24 11 39 54 45 50 48 07 Usance, 1 m|d 1 ni|d 30 d|d 2 m|s 3 mid 3 md 3 mid 3 m|d 30 did See p. 190 Days of Grace. 6 12 10 14 3 30 6 6 3 By comparing the Far with the Course of Exchange^ it ap- pears that Amsterdam gives London 37s. 6d. Flemish for £\, Sterling, which is above Par. Hamburgh gives 35s. lOd. Flem. for £1. Sterl. wliich is above Par. Paris gives 25 Livres 2 Sous for o£l. Sterl. which is above Par. Madrid giv,es the Piastre for 34d. English, which is under Par. Leghorn gives the Dollar for 49d. w^hich is under Par. Naples gives the Ducat for 38d. which is under Par. Genoa gives the Pezza for 45d. which is under Par. Venice gives 59 Livres, for c£l. Sterling, which is above Par, Lisbon gives the Milree for 61d. which is under Par. Dublin gives o£ll2| Irish for o£?100 English, which is above Par. The following Rule will shew when the Exchange is favour- able or unfavourable. The lower the Course of Exchange runs, the more favourable it is to the Place or People in whose Money it is reckoned, and vice versa. Hence, according to the above Table, the Exchange is, in every instance, favourable to London; but in all such computations. Interest should be allowed for Usance, or the time which Bills may have to run. • Sec Note, p. 188, A Jjl 186 AMSTERDAM. There are two Sorts of Money in Holland, called Banco and Currency — the former generally bears a small Premium called jJgio, and all Bills of Exchange are valued and paid in Banco, Accounts are kept in Guilders, Stivers, and Pennings ; and also in Pounds, Shillings, and Pence Flemish. 16 Pennings zz 1 Stiver (n 2 Pence Flemish) 20 Stivers — 1 Guilder, or Florin. 2f Guilders iz 1 Rix Dollar. Guilders iz 1 Pound Flemish, ALSO, 8 Pennings = 1 Groot, or Penny Flemish. 19 Pence = 1 Shilling. 20 Shillings = 1 Pound. Dutch Money is reduced to English by saying, — Js the given Rate of Exchange to £\, Sterling , so the given Dutch to the Stet- ling sought :-^and sterling is changed to Dutch by reversing this analogy. Banco is reduced to Currency by saying — As 100 + Agio : 100 :: Banco : Currency; and Currency is changed to Banco by the reverse statement. EXAMPLES. Reduce 8132 Guilders 16 Stivers into Sterhng ; Exchange at 10 Florins or Guilders 8 Stivers <^ Pound Sterl. (=34s. 8d. Flem.) G. If 10 20 208 jC.St. Guil. StiT. 1 :: 8132 16 20 208)1 62656 ( 78^^Answ. 1456 1705 1664 416 4i6 000 ^Reverse Analogy. L. G. S. £, Guild. Stiv. As 1 ; 10 8 :: 782 : 8132 16 DECIMALLY. 8 — f^ ~, 4 If 10,4 : 1 16 -T^ : 8132,8 : 782 When the Price is given in Flemish, say- 1 208 As 34 8 6 FI. St. 8132 16 20 )162656( 783 187 Reduce 8521. 12s. 6d. Sterling into Dutch Money ; Exchange at 10 F. 6 St. 4 Pen. ^ Pound Sterling z=: 34s. 4|d. Flem. t. St If 1 20 10 io 206 12 16 Pen. 4 12 240 3300 : 852 20 17052 12 204630 3300 Ifl 16 24,0 )67527900,0 ( 2813662| 480 2 0)17585,3 195 Guild. 8792,13 192 32, &c. 141 141 DECIMALLY. 10,3125 :: 852,625 10,3125 4263125 1705250 852625 2557875 8526250, . . 8792,6953125 20 13,9062500 160 14,5000000 If the above Course of Exchange had been given iji Flemish, the Operation would be as follovrs : — Ifl 34 4i 12 852 12 G: 8792 13 141 20 412 8 3300 17052 12 204()30 3300 16 24,0 j()75279Q0,0( 2813 6(>2i 480 20j 17585,3 ^ _ 141 195 Guild. 8792,13 14i 192 32. &c. OR THUS BY PRACTICE. lOs i..852 12 6 4 f..42e> 6 3 4dTV-170 10 6 i i.. 14 4 2| 1 15 6i + | .i'.Fle. 14()5 TT 8 Hi 6 Guild. 8792~ Stiv. Penn. 8 =lld. Guild.8792 13 i4| i = Tr QUESTIONS FOR EXERCISE. Reduce 2210 Guilders Banco into Currency ; Agio, SJ ^ Cent. Pen. 4. Answer. 2279 Reduce 2279 Guilders, 1 Stiver, 4 Pennings Currency into Banco ; Agio, 31 ^ Cent. Answ. 2210 Guilders. Reduce 9177 Guilders, 6 Stivers, 14 Pennings Currency of Hol- land, into English Money; Exchange at 35s. lOd. Flemish ^ £. Sterling, and Agio, 4-J ^ Cent. Answer. o£'817 18s. 5jd. Sterling. 188 HAMBURGH. There are two sorts of Money at Hamburgh, called Banco and Currency*. Banco bears a considerable Premium, the Agio being from 18 to 25 ^ Cent. ; and all Bills of Exchange are valued and paid in this Money. Accounts are kept in Marks and Shillings, both Bai^co and Currency^Kho in Pounds. Shillings, and Pence Flemish, but this is an imaginary money, and only used in Exchanges. 12 Phennings . n I Shilling = 1 Mark. ;. ~ I Dollar of Exch. =: 1 Rix Dollar. ALSO, = 1 Groot, or Penny, - 1 Shilling, = 1 Pound, HENCE, 16 Shillings 2 Marks . 3 Marks . 6 Phennings, 12 Pence 26 Shillings . Hambro' Banco and Currencyt. > Flemish, 6 Shillings Ham-, bro' Banco* 3 Marks Banco = 1 Shilling Flemish, and = 8 Shillinofs Flemish. ♦ Tlie Mon'es of Hamburgh may be more particularly . t, Stcrl. M.Banco. L. Sterl. S. O. Again—If 35 6:1:: 3750 : 281 13 9f Answer. OR THUS BY CONJOINED PROPORTION : Current Marks 120 = 100 Marks Banco. Marks Banco . 3 — S S. Flemish. Flemish S. - 35 6 =: I £. Sterling. 45000 Marks Currency. Products 12780 ^ )36000CO( 281 13 9|. QUESTIONS FOR EXERCISE, Reduce 8234 Marks, 10 Shillings Banco into Sterling ; Exchange at 33s. lOd. Flemish «^ c£. Sterl.— Answer. .£649 Os. 8Jd. Reduce 8732 Marks Current into Sterling ; Exchange at 34s. 5d. Flemish, ^ £. Sterling, Agio 20 ^ Cent. Answer. £5Q3 16s. 2id. 1^0 PARIS. Accounts in France are kept in Livres, Sous, and Deniers, and also in Francs and Cents. 12 Deniers 20 Sous . 3 Livres 1 Sou, or Sol. 1 Livre Tournois. 1 Ecu. ALSO, 10 Centimes . . • . r: 1 Decime. 10 Decimes, or 100 Cents, zz^ 1 Franc. 80 Francs ..... n 81 Livres. Thus the Franc, or new Livre — 243 Deniers, being J | ^ Cent, better than^the old Livre Tournois, Vfc-hich := 240 Deniers*. Hence, as 81 : SO : : Francs : Livres. EXAMPLES, Reduce 197 Francs, 7 Decimes, 5 Centimes, into Livres, Sous, and Deniers. 9. liv. If SO : 81 Fr. Cents. 197,75 81^ 19775 ' 158200 80 )16017,75 Livres. 200,221875 Sous. 4,437600 12 Den. 5,250000 REVERSE OPERATION. Liv. 200 4 Sous z= ,2 5 Den. - ,0208333 i \ Den. - ,0010416 | 200. 2218750 80 81 )16O177500000(197.75 81 791, &c. • Francs and Livres were formerly synonymous, but, in a late Coinage, the. Pieces were, by some accident, made too heavy, being worth IOI5 Sous instead the new Franc has been therefore adopted in conformity to this accidental val The following are the principal Alterations recently made at Paris in the Exchanges, London, 23 Francs 95 Cents, for £\. Sterling, *^ Amsterdam, 3 Francs for 35d. Flemish, — . . J Hamburgh, 190 Francs for 100 Marks Banco, J^ns gives ^i Madrid, 14 Francs 30 Cents, for 1 Pistole, Leghorn, 3 Francs 25 Cents, for 1 PezzadiOtto, Genoa, 4 Francs 95 Cents, for 1 Pezza di Lire,^ 5 Livre of 100; ue. French more or less. 191 Paris exchanges with London by giving a variable number of I jvres. Sous, and Deniers, or of Francs and Cents for the Pound Sterling; also the Ecu for a variable number of English Pence. EXAMPLES, Reduce 7909 Livres, 13 Sous, into English Money ; Exchan^je at 23 Livres, 15 Sous ^ £. Sterling. Liv. Sous. L, Livr«i. Soon If 23 15 : 1 :: 7909 13. 20 20 475 475 )158193( 333 ; 9 DECIMALLY. 1425 If23,75:l:; 7909,65 1569 1 1425 23,75 )7909,65( 333,0379 1443 7125 20 1425 7846 0,7580 20, &c 7125 12 REVERSE ANALO If 1:23 15:: 333 9 &Y. 7215, &c. 9,0960 : 7909 13. Reduce .£875 17s. 6d. into Livres, &c. ; Exchange at 23 Liv. 15 Sous, ^^. Sterling. L Liv. Sout. L. S. D. If 1 : 23 15 :: 875 17 6 DECIMALLY. 20 20 20 L. l.iv. L. 20 475 17517 If 1 : 23,75 : : 875,875 12 12 23,75 240 210210 20802,03125 475( 2,0 20 24,0 )9984975;o( 41604,0,625 0,62500 96 1^; > 12 38 20802 : : 7,50C ) 7,50000 BY PRACTICE. OR THUS. 875 17 6 23 15 875 17 6 2625 1750 8 70C7 Sous 10 zz 1- 437 10 3 5 z= i 213 15 21021 Shll. 10 z= 1 il 17 6 5S. = i— 218 19 4| ,5-1 5 IS J9 Liv. -. 20802 O' 7f 2. 6-r.f , 2 19 4| Liv..eo Maiv. If 1 : 34:: 2375 6 17 8 8 8 19006 34 34 472 646221 X 34 ^ 472 = c£336 lis. Sfd. + f. ■—.-——.I—. ■ ■ ■ ... f I 111 . . I I . I » ■ I I I III — — ^a^— .» * The Money of Spain is distinguished into Plate and Vellon, and the former is lo the latter as 32 to 17— that is, 32 Rials Vellon zz 17 Rials of Plate. In Exchanges with England Plate only is used. A diflference is sometimes made between the Effec- tive Money and the Government Paper— There is also a diflference between the mo- nies used for exterior and interior Commerce ; the latter money even varies in dif- ferent Provinces of Spain. 193 The foregoing Question may be proved by reversing the Pro- portion, or thus by Practice. ^375 6 17 at Qs. lOd^ 2 S. - -'- ^ .7. J jj 237 10 8 d. zz -1- 79 3 4 2 d. = 1 19 15 10 4 R. = ^ 1 5 2 = 1 81 7 M. = J 2 +J jbsm 11 oi + i QUESTIONS FOR EXERCISE. Reduce 432(3 Piastres, 6 Rials, 23 Marafvedies into Sterling j Exchange at 38|d. ^ Piastre.— Ansv^^. <£691 16s. lOid. Reduce 16144 Piastres, 4 Rials, 22 Maravedies Vellon, into Ster* iing ; exchange at 34 f ^ Piastre of Plate. Answer. c£l232 18s.. 3|d. LISBON. In Portugal, Accounts are generally kept in Milrees and Rees, and they are distinguished by a mark set between them ; — thus, 782 O 355, that is, 782 Milrees, 355 Rees. 400 Rees ... z= 1 Crusado. J 000 Rees . . . n 1 Milree. As Rees are Decimal Parts of a Milree, Exchanges are best calculated by Decimals, and proved by reversing the Proportion. QUESTIONS FOR EXERCISE. Reduce 827 O 160 into Sterling ; Exchange at 63| ^ Milree. Answer. .£218. 8s. 5|d. Reduce 7434 Crusados, 347 Rees into Sterling, at 65d. ^ Milree. Answer. .£805. 8s. 10-|d, Bb 194 LEGHORN. Keeps Accounts in Piastres, Soldi, and Denari ; and Ex- changes with London are likewise computed by these Denomi- nations. 12 Denari ^ ... . =1 Soldi. ' ^ 20 Soldi - 1 Piastre, or Dollar. Leghorn exchanges with some places in the Piastre of S Rials, or 5 Livres, 15 Sols, • Reduce 1876 Piastres, 12 Soldi, 6 Denari, into Sterling at 50|d. ^ Piastre.— -Answer, £392, ISs. 4id. NAPLES AND GENOA. Negociate their Exchanges, like Leghoni, dividing their Pezze, Ducats, or Dollars of Exchange into Soldi and Denari. The same may be observed of most other parts of Italy and the Italian Isles. At Naples, however, and in Sicily, the Ducat Regno is divided into 100 Grains. VENICE. Venice negociates Exchanges with London by giving an un- certain number of Livres or Lire Picole for the Pound Sterling.* 12 Denari ... — 1 Soldo. 20 Soldi . . . . = 1 Lira. 63 Livres, or Lire = 1 Ducat Current. Reduce 7359 Livres, or Lire Picole, into Sterling ; Exchange, 59J Liv. ^ £, Sterling.— Answ. c£l23. Ss. 3d. ♦ Formerly Venice hegociateH Exchanges with London by giving the Ducat Banco for an uncertain number of Pence Sterling; but the Bank Money of that place has been of late at a considerable Discount. Tliere are at Venicfe three sorts of Money, or Valuta, n^imcly, f'^a/uta di Bancoy in which the Bank keeps Accounts ; Valuta Correntej which is the Standard of their coin; and Valuta Picola^ used for the sale and purchase of Merchandize : — ^The firsl sort ha? been reckoned 20 per Cent, better than the second, and the second 20 per Cent- better than the third. 195 The foregoing are the principal places in Europe with which London lias a direct Exchange. — Negociations, with other places, aie mostly made by Bills on Amsterdam, Hamburgh, or Venice. The following are their Monies of Exchange : — Par nearly, ["Exchanges in Francs and*! s, d, Antwerp \ Cents, and also on the Rix I — 4 6 L DoL = 4SPatars,768 Pen. J . ( Florin = 60 Creutzers = 2407 Augsburg 1 ^ „ . 5- =; 3 I rennis \ (Florin =:C)0 Creutzers, and"| 36 Creutzers = 1 Livrezi I =30 ^20 Sols = 240 Deniers- - - J „ ' , fRix Dollars 24 Gros = 2887 Berlin 1 -J ^^ J- = [^ Deniers \ Constantinople 1 Piastre=40 Parats=120 Aspers = ^ CRix Dollar = 6 Markszz 1(727 Copenhagen... 1 | Sols =2304 Deniers \ = CRix D. = li Flor. = 22i Batz7 Franckfoet ... 1 I ^c)0Creutz.=:360PeninsJ ^ Geneva 1 Ecu =3 Li v. =60 Sols =720 Den. = CRix Dol.= liFlor.=24 Gros7 L^^^^^^ 1 I =488 Deniers \ = _, COunce=2jEcus=30Tarins7 Palermo 1 ^ /-r. i- i rr^rs r- • r = 12 6 (^ =60 Carl ens = 600 Grams. ^ — ^ - " f Rwble = 100 Copecs = 200 > Petersburgh-- 1 ^ ht r = 2 6 t Moscoes \ ^ Rome 1 Crown=10 Julios=100 Ba3^ocs =6 1 C Rix Dollar = 48 Shillings = 7. Stockholm I^S-^/^t^- ^=46 [ o76 Deniers j " CRix Dollar =li Florins=907 ^^^^^^ ^1 Creutzers=360Penins..l = ^ 6 Most other Trading Places, in the Northern Parts of Europe, exchange on the Rix Dollar — in Dantzic, however, the Florin is used, which is worth lOd. Sterling ; and in Koningsberg, the Florin, which is worth about Is. l|d. Sterling, 4 6 4 6 4 6 4 6 3 9 4 6 igcy D U B4.4 N. Accounts in Ireland are kept in Pounds, Shillings, and Pence, as in England ; the Par of One Shilling English is One Shilling j^nd One Fenny Irish; jjnd therefore .^^100 English :r .^108. 6s. 8d. Jrisli; but the Course of Exchange varies from 6 to 20 ^ Cent. EXAMPLES, Reduce £5Qd, English into Irish, at Par. + 43 1.3 13 )5()8 15 Irish. —43 15 525 Enolish. Reduce =£748 10s. English into Irish ; Exchange atl2| ^Cent BY PRACTICE. 748 10 m = | + 93 11 3 'If 100 : 112 10 :: 748 10 : 842 1 3 And to reduce Irish to English, If 112 10; 100:: 842 1 3:748 10 9 )842 1 3 Irish. —93 11 3 748 10 Enolish. QUESTIONS FOR EXERCISE. Reduce ^787. I5s. English into Irish ; Exchange at 11|. Answer. .^879. 6s. 6d. Reduce .^876. 12s. 6d. Irish into English, according to the pre- sent Course of Exchange. Page 185, with Proof. Bills drawn from London on Dublin are generally either at 21 Days Sight, or 30 Days Date ; also at 31 Days sight, 45 Days Date, and 60 Days Date, and the Price of Exchange is stipulated accordingly. Thus, if the Course be 12| at 21 d|s, it will be 12| at 31 djs ; 12| at 4o did : and 121 at 60 d|d. each advance being nearly equal to the interest for the corresponding time. 197 INLAND BILLS. Several places in Great Britain exchange with London at a small premium in Favour t^f London, such as 1 or IJ <^ Cent. Thus a Bill of c£860. drawn at Edinburgh on London, at a Pre- mium of 1| ^ Cent, will cost <£871. 10s. 6d. ; but the Premium is generally commuted for Time— that is, by drawing the Bills on London at a certain number of Days*after Date, and according to this Practice, 73 Days - 1 ^ Cent— (See p. 164..) AMERICA AND THE WEST INDIES. In North America and the West Indies, Accounts are kept in Pounds, Shillings, and Pence, as in England ; but as there are here but few Coins, a Paper Currency is substituted, which is generally at a considerable Discount, and which may be com- puted in the following* manner : — Reduce ^845. 17s. 6d. Currency into Sterling ; Exchange at 80 ^Cent. Cur. Ste If Reduced < Cur. 180 : 18 : 9 : Sierl. 100 10 5 :: 845 17 6 o 9 )4'229 7 469 18 6 7i Sterl. Reduce ^1780, Currency into Sterling; Exchange at 40 ^ Cent. Answer. ^1271. 8s. 0|d. Reduce >£:91 7. 18s. Sterling into Currency, at 75 ^ Cent. With Proof*. * Questions in Exchange, which are performed by the Rule of Three, are proved by reversing the Proportions, and" carrying the Remainders, if any, to their proper places. 19S ! 'i PART III. ; ARBITRATION^ OF EXCHANGES, J "WITH \ i W ' Rules for Drawing and Remitting to Advantage. * Arbitration of Exchange is a comparison made between , the Exchanges of different Places, for the purpose of negociating Bills to advantage — a subject which may require some previous -^ illustration. In the Negociation of Bills of Exchange, there are two parties i principally concerned ; namely. Sellers of Bills, called Drawers, ' and Buyers of Bills, called Remitters; and their Interests are op- j posite with respect to the Price or Course of Exchange. .., | In directExchange, that is, when Bills are negociated between ■ two places only, the Interest or advantage of the Drawer is the j same as the Interest of the Place on which be draws, and the re- \ verse takes place with regard to the Remitter. — Suppose, for ex- i ample, A. of London wants to remit a Bill to Dublin of d£lOO. i Irisli*, which Bill he purchases of B. of London, Exchange at % 10 ^ Cent, the Bill will cost £90, 18s. Sd. ; but had the Course 1 of Exchange been higher, that is, more in favour of Londont, the . Bill would have cost less. Suppose the Rate to be 11 ^ Cent, the Bill will then cost only ^90. Is. lOd.— Thus, when the Ex- | change is in favour of London, it is in favour of the London Re- mitter, and agamst the London Drawer, and vice versa, \ * Bills of Exchange are mostly drawn in the Money of the Places where J^ey are to be paid. t When London gives the Certain^ the higher the Exchange is, the more it is in her favour ; but the reverse takes place, when she gives the Uncertain or variable Price* Seepage 184 and 185. 1S9 When a Bill of Exchange is purchased, and remitted to the place on which it is drawn, in order to gain by the Re-exchange from the same place, the Profit should be at least equal to the Interest of the Bill. Suppose, for example, J. of London purchases a Bill on Dub- lin of o£'oOO Irish, at 21 Days Sight, Exchange 10 ^ Cent.; at what Price should the Amount be remitted back in a Bill on Lon- don of 21 Days sight, to afford J. 5 ^ Cent. ^ Ann. Interest? Here it may be computed, that in 56 Days J. will receive his return; that is, allowing 21 Days for each Bill, with 3 Days Grace and 4 Days Passage.— Then, if ofllO : oi^lOO ;: c£500 : e£454. 10s. lld.zzthe first Price of the Bill, the Interest of which, for 56 Days at 5 ^ Cent, is £3. Qs. 8d.— Then, If o£?458. Os. 7d. (the Amount) : c£500 : : c£lOO : <£109. 3s, 5d. Thus if the Bill be purchased in Dubhn at 9| ^ Cent, it will yield something more than 5 ^ Ct. and if at 9i, something less. When Commission * and other Expences are included, the computation may be made in the following manner ; — Suppose c£100 be remitted to Amsterdam at 2 Usance, Ex- change 11 Fl. 15 Stiv. ^ £. Sterling, at what Exchange must the Amount be remitted back to London in a Bill of 2 Usance, so as to prevent Loss ? Interest on i^lOO. at 5 '^ Cent, for 4 Months. c£l 13 4 Commission at i tjp" Cent 10 Double Brokerage at 4s. ^ Cent 4 Postage 8 £2 8 If 102 8 : 100 :: 11 15 : 11 9 7. Hence a Bill remitted back at 11 Fl. 9 Stiv. 7 Pen. will yield a Profit of .£2. 8s. ^ Cent, for 4 Months, which covers the ne- cessary Expences, and affords 5 ^^p^ Cent. ^ Annum Interest on the Remittance. * Bills of Exchange arc generally bought and ;oIci through the medium of Brokers, and the Agent who employs the Kjoker also charges his Coiarnii.si«>ii. 200 In negociatmg Bills of Exchange through several Places, a Comparison must be made between the present Course or Direct Price, and the Proportional or Arbitrated Price, in order to de- termine where the Exchange is favourable or unfavourable ; and hence the Rule of Arbitration, which is either simple or Com- pound. SIMPLE ARBITRATION. Simple Arbitration is the Proportion between the Ex- changes of any two places with respect to a third; and it is per- formed by the Rule of I'hree, either Direct or Inverse, according to the Conditions of the question. EXAMPLES, If the Exchange from London to Lisbon be 68d. ^ Milree, and from London to Madrid 34 Pence ^ Piastre, what is tlie Arbitrated Price between Lisbon and Madrid ? — that is, how many Rees should be given for 1 Piastre ? The Solution of this Question is obvious ; for, as 34 is the half of 68, the Piastre must be worth half a M ilree, or 500 Rees. — Thus, d. Reet. i.^^ 500 : 4B0 : : 100 : 96, Or thus :— If 34 Pence : 1 Piastre :: ^100 : 705 Pias. 7 Rials. 2 Marav. which at 480 Rees ^ Piastres 338 Mil. 826 Rees, ^nd this, at G8d. ^ Mil. =: ^96. Sterling. c c 20^ Suppose London has to remit to Hamlpurgh ; the Exchange is 32. 6. but Bills on Lisbon can be purchased in London at 67^ Pence «^ Milree, and, by the latest advice, the Exchange from- Hamburgh to Lisbon is 46d. Flemish ^^ Crusado : — Which is the most advantageous, to remit directly to Hamburgh, or indi- rectly through Lisbon. The most simple method of solving Questions of this nature is, to. find what the ^*ound Sterling will bring by direct and by indirect Exchange, a^nd then compare the results. Thus, If 400 Rees : 46^ Pence Flem..:: JOpO Rees : 115 Pence Flem. , Flem. D. 34 1 Indirect Exchan| 32 6 Direct Exchange; Pence Sterling. Pence Flem. 1.. Sterl. S, Flem. D. If 671: : 115 : : 1 : 34 1 Indirect Exchange. Is. Td.G.ain^ Pound, Hence the Indirect is about 4i^ Cent, better than the Direct. —For, if S2s. 6d. Flepi. : Is. 7d. : -, £100 ; ^4 17 5. Suppose L. of London has Orders from P. of Paris to remit to him at 23 Livres 12 Sous, and to draw for the Amount on ^. of Leghorn, at the Exchange of 53d. 'JP' Dollar; but L. fmds the Exchange of London on Paris is 24 Livres. — At what Exchange should he draw on Leghorn to fulfil the Order? Liv. D. i.iv. - .■-uq'*^* .' If 23,6 : 53 : : 24 :c53 >Kio 0-^^ 24 )12o0,8( 52 | nearly. 120 50, &c. The above Question is evidently InVer&e Proportion; fofras London gives Paris the Certain^ and Leghorn the Uncertain, it is the Interest of London that the Price of her Poimd^should be high, and the Price of the Dollar low.— — Here more requires less, and less more ; that is, the more Livres are given for the Pound Sterling, the less should be the Price of the Dollar, to pre- serve the due proportion. Thus, Inverse and Direct Proportion may be always distinguished in Simple Arbitration. -203 COMPOUND ARBITRATION..,.' Compound Arbitration discovers the most advantageous mode of negociatiiig Bills in all cases where more than three places are concerned, and is only a continuation of several Statings in Simple Arbitration. This Rule may be also performed by Conjoint Proportion ; that is, by a Series of Proportions, arranged into Antecedents and Consequents, commonly called the Chain Rule. EXAMPLES. Suppose the Exchange between London and Amsterdam be 11 Flor. 10 Stiv. (= 38s. Flemish) for £1. Sterling; between Amsterdam and Franckfort 6s. Flemish for 65 Creutzers ; and be- tween Francfort and Paris, 56 Creutzers for 3 Francs;— What is the Arbitrated Exchange between London and Paris ? S. Flcm. If 38 : L. Surl. S. Plem. S. Sterl. 1 :: 6 : 3^. Creutzen. S. If 65 ; 3tV : Crcuisers. S. D. : 56 : 2 8-|-$f n: 3 Francs. S. D. Franci. ■ 2 84-«5. : 3 L. Sterl. fr. Cents. ; ; 1 : 29 5 ^ £, Sterlir Operations like the above may be thus contracted by the CHAIN RULE. I. Distinguish the several Courses of Exchange into Antece- dents and Consequents, and place them in two Columns, the Antecedents to the left, and the Consequents. to the right. II. The first Antecedent and the last Consequent to which an Antecedent is required, must be of the same Denomination. III. The first Consequent must be of the same Denomination as the second Antecedent, and the second Consequent as the third Antecedent, and so on throughout. IV. Mulltiply the Antecedents continually for a Divisor, and the Consequents continually for a Dividend ; the Quotient will be the Answer or Antecedent required. 204 Such Antecedents and Consequents as are alike may be dropped or rejected, and such as admit of a common measure may be re- duced to the lowest terms, like Vulgar Fractions*. The foregoing Question performed by the Chain Rule. ANTECEDENTS. CONSEQUENTS. 1 Pound Sterling =: 38 Shillings Flem. 6 Shillings Flem. = 65 Creutzers. 56 Creutzers =: 3 Francs. :=. 22 Francs 5 Cents. 38 X 65 X 3 _ 7110 IX 6 X 66 "" 336 Suppose Amsterdam has^to remit to London .£100. Flemish, the Direct Exchange being 1 1 Florins 1 Stiver ^ £. Sterling ; but a Circular Exchange may be made on the following terms. — Am- • Operations in Compound Arbitration may be likewise facilitated by Logarithms. —Thus, from the Sum of the Logarithms of the Consequents, subtract the Sum of the Logarithms of the Antecedents ; the difference will be the Logarithm of the Answer, Any operation in this Rule may be proved by what is called the DoSIrheofCofi' traries^ that is, by beginning with the last Con!:equent and ending with the first An- teceden ; and making all the other Consequents Antecedents, and the Antecedents Consequents. The Truth of the Chain Rule may be thus demonstrated by Algebra- Let Ay By C, Dy &c he several Denominations of Money, and tn, », p, q, &c. the Numbers or Quantities of those Denominations, and let them stand thus : ANTECEDENTS. CONSEQUENTS. m A , . :=z * » n By pB . . — . , q C, r C , . — , . s Df t D , . zi . . V Ei Now to find what number of ihe last Denomination (E) is equal to a given Num- ber of the first Denomination (A) let 2 limes the last Term zz y times the firs', that is, let a: E ziy A. Alultiply all these Equations together, the Antecedents by the Antecedents, and the Consequents by the Consequent.*, which will give mA%fB)^rC-/^tD^%E ZZnBy.qC/^sDAvE^yAy and this Equation reduced is m p r t xZZn qs vy, nq s vy Now if the Number of the. last Denomination be required, x— — *- — --; but if m p r t the Number of the first Denomination be required, _y~ "--"^> Ey D. 205 sterdam to Paris at 66d. Flemish for 3 Francs; Paris to Venice 300 Francs for 60 Ducats ; Venice to Hamburgh 1 Ducat for lOOd. Flemish; Hamburgh to Lisbon, 50d. Flemish^ Crusado; and Lisbon to London 64d. Sterling ^ Milree .-—Which is most advantageous, the Direct or Circular Exchange, and what is the difference ^ Cent. ? ANTECEDENTS. CONSEQUENTS, 56d. Flemish ... = .. 3 Francs. 300 Francs .... = .. 60 Ducats. 1 Ducat .....=:,. lOOd. Flem. 50d, Flemish ... = .. 400 Rees. 1000 Rees . . . . zi . . 64d. Sterl. How many Pence Sterl, — . . ^100. or 24000d. Fl. 3 X 60 X 100 X 400 X 64 X 24000 60 X 8 X 8 X (24 56 X 300 X b/0 X 1000 7 ^^- 13 165^ d. Sterl. - £54 17 1 4- Circular Exchange. AndifllF.lSt.:i:iSt.'::i:i00Fl.:54 5 11^ Direct Exchange, Gain ^ Ceht lis. 2^ by Circular Ex. . When Brokerage, Commission, &c. are charged in Circular Ex- changes, these Expences should be deducted from each Consequent, and the Question worked as before. Suppose in the foregoing Prob- lem I ^ Cent, were charged, say. If 100: ,5 : : 1 : ,005, which is the common Factor to be multiplied by each Consequent, and the Product subtracted — Thus, 3 x ,005 — ,015, and 3 — ,015 = 2,985 = the first Consequent, and in the same manner the rest may be found. — Or, deduct from each Consequent its 200th part QUESTIONS FOR EXERCISE IN DIRECT AND CIRCULAR EXCHANGES. If the Exchange from London to Hamburgh be 33s. 3d. Flemish ^ £. Sterling, and from London to Paris 23 Livres 15 Sous ^ ^. Sterling, How many Francs and Cents are equal to 100 Marks ? Answer. 188 Francs 12 Cents. If the Exchange in Hamburgh on London, at 2 Usance, be 33, — What should it be at Sight, reckoning I ^ Cent, for the Time; Answer. 33s. Sfd. If the Exchange from Paris to Madrid be 14 Francs 50 Cents, for I Pistole, and from Paris to London 23 Francs 95 Cents, ^ £, Sterling, What is the Arbitrated Price between Madrid and London, that is how many Pence Sterimg should be given for 1 Piastre? Answer. 36] d, or 36.325. Suppose the Course of Exchange between Amsterdam and Paris be 65 Groots for 3 Francs, and between London and Amster- dam, 10 Florins 15 Stivers for 1 Pound Steriing,— What is the Arbitrated Price between London and Paris. — Answer. 93 Francs 45 Cents. If the Exchange from France to Hambufgh be loif Francs for 100 Marks Banco, — What is the Exchange from Hamburgh to to France — that is, how many Shillings Hambro' Banco should be given for 3 Francs? Ans. 25 Shil. 1 Phen. Hamburgh has to remit to London; tfie Exchange direct is 32 Shillings and Id. Flemish, but Hamburgh can purchase Bills on Amsterdam at 37-^6' Stivers for 2 Marks Banco. Now, if the Exchange from London to Amsterdam be 35s. 8d. Flemish ^ £. Sterling,— Wl.ich is the most ad- vantageous, for Hamburgh to' remit to London direct, or by the way of Amsterdam ? ^nswer. Hamburgh, by remit- ting through Amsterdam gives only 30s» 4id. Flemish for the Pound Sterling, which is Is. 8yd. Flemish better than by the Direct Exchange. The advantage of the Indirect, therefore, is sibout 5f ^ Cent. Suppose Hamburgh has to remit to London <£1757. 15s. Flem, Exchange at 35s. 6d. Flem. ^ £. Steiling, but Bills on other Places can be had on the following terms. — Hamburgh on Paris, 54d. for 3 Francs ; Paris on Venice, 300 Francs for 56 Ducats ; Venice on Amsterdam, 1 Ducat for lOOd. Flemish; Amsterdam on Lisbon, 45d. Flemish. for I Crusado; Lisbon on London, I Milree for 63d. StejJ. — Which is the more advan- tageous, the direct Exchange or Circular, allowing ^ ^ Cent. Commission on each Negociation.^ Answer, oflO. 5s..0-sd- Sterling gained by the Circular Exchange. 207 REMITTANCHS AND RETURNS KXEMPLIFIFD EV REAL OPERATIONS, The reciprocal Courses of Exchange between two pjaqes should Jtl ways differ, and the Difference should be equivalent to the In- terest of Money and the Expences of Remittance. Thus the Course of Exchange of London on Dublin should be 1 "^ Cent, more than that of Dublin on London, to afford tiie Remitter from either place a regular Profit on his Remittances and Returns, on ^ills at the usual Date. Suppose, for Example, Z/. of London purfchases a Bill on Dub- lin, at 21 djs, of o£ll2. Irish for <£100. English, which he remits to hi^Factor at Dublin, desiring him to make returns in Bills on London at 21 d|s ; and suppose a Bill of o£'100. English is remit- ted back to L. which costs only a£?ll;l. Irish, there is c£L Irish ^ Cent, gained by the Transaction ; and the same would take lilace, had the Remittance been first made from Dublin on the ^bpvie Terms. ^'^ i!^ow to compute how much the difference here ought to be, the Interest of 56 days must be reckoned, (the usual time such 5 ills take in making returns) and this, with Brokerage, Postage, &c. will amount to 1 «^ Cent, nearly, w hich is reckoned a Fair Difference in the. Exchange between London and Dublin, on Bills of the above Date. It may however be observed, that the Difference is not ahvays equivalent to the Interest, &c. but fluctuates according to the Demand for Bills ; affording, sometimes, room for speculation, and co-operating with the causes already laid down to render the Exchange favourable, or unfavourable. 208 The following is an E^^ample of a Bill sent from London to Hamburgh, September 1801, to have returns on London. rs 1 r« 1 • rT i i Mirks Bov -£842. 2s. Id. Sterling on Hamburgh, at 3 Us. a 31s. 8d. Flem. ^ c£. Sterling — 10,000 Bo. Mirks. Commission |^ <^ Cent 50 Double Brokerage 2 ^ Thousand t\- - 20 Postage 3 4 73 4 Discount 82 days ab^ Cent* 112 4 185 8 Net Proceeds in Banco Marks 9814 8 Returns in 3 Bills, viz. B*. Marki. <£d00 Sterl. a 3 Us. on A. B. a 30s. lO^d. .. 5789 1 200 a 2 Us. on C. D. a 30s. lid. ... 231S 12 146 16 4 a 2Us.t)n £. P. a 3Is 1706 11 846 16 4 Returns 9814 8 842 2 1 Remittance £4 14 3 Gain, which is not qiiite equivalent to the Dis- count and Postage of the Returns ; but had the Course of Ham- burgh onXondon been 30s. 9d. it would have produced the re-s- gular profit. Thus lOd. Flemish ^ <£. Sterling may be reckoned a Fair Difference between Hamburgh and London on Bills at Usance. In Exchanges between two places, the Denominations of Mo- ney are not always reciprocal ; thus Paris gives Madrid a variable number of Francs for the Pistole, and Madrid gives Paris the Piastre for a variable number of Sous ; this will be better under- stood by perusing the following Lists of Foreign Exchanges. ♦ When the Returns are to be made diredly, the Remittances are discounted, and here it may be observed, that the Interest of Money on the Continent is not limited, but fluduates according to th^ Plenty or Scarcity of Cash, or the Credit of Paper. 20q EXPLANATION OP FOREIGN LISTS OF THE COURSES OF EXCHANGE. AUGUST^ 1804*. LONDON ^ AMSTERDAM ON Explanation- ON Explanation, Amsterd. 37 10. ...S. Fl. for £l.Ster. London 37 7... .Sh.Fl. for Xl.Steri. Hainbro' 36 3. ...S. Fl. forili. Ster. Hambro' 33| ... .Stivers for 1 Dollar. Paris .. 25 12. ...Liv. for £i. Ster. Paris ..53 ... .Groots for 3 Francs. Madrid --38| . .„d. Ster. for 1 Piast. Madrid 89 ... . Groots for 1 Ducat. Leghorn 49 ...d. Ster. for 1 Doll. Leghorn 92§ ... .Grootsfor 1 Dollar. HAMBURGH PARIS ON Explanation, ON Explanation, London . 35 10. ..-S. Fl. for XL Ster. London 251 8.,. .Francs for i:i.Ster. Amsterd. 86 0. ...Stivers for 1 Dol. Airreter. 56.4 ... .Groots for 3 Francs. Paris .. 24i 0. ...Shil. B«>. for3Frs. Hambro' 188 ... . Francs for 100 Mks Mad lid.. 85 0. — Groots for 1 Due. Madrid 14 ... .Francs for 1 Pistole. Legliom 8^1 0. ...Grootsfor 1 DoL Leghorn 101 ... .Sous fori Dollar. MADRID LEGHORN ON Explanation, ON Explanation. London 39|..- .d. Ster. fori Piastre. London. 31^ ... .d. Ster. for 1 Dollar. Amsterd. 93 ... -Groots for I Ducat. Amsterd. 942 ... .(Jroots for 1 Dollar. Hambro' 84§.-. -Groots for 1 Ducat. Hambro' 85^... .Groofs (or 1 Dollar. Paris .. 7Ii... .Sous for 1 Piastre. Paris 103 ,,.. .Sous for 1 Dollar. Leghorn 108 .... .Dollars for 100 Piast. Madrid 128 --. .Doll, for lOOPias. * Lists of the Course of Exchange (containing the variable price only) are issued from the principal trading places of Europe. Such are here explained as are most generally useful to English Merchants. D d 210 By inspecting Foreign Lists of Exchange, and comparing the actual and arbitrated prices, considerable profits are sometimes made, as in the following example. ARBITRATION EXEMPLIFIED BY A REAL OPEllATION. In March 1802, Exchanges were as follows ; London on Am- sterdam 10 16, London on Cadiz 37, and Cadiz on Amsterdam 107 ; whereupon London purchased 10000 Piastres, and remitted them to Cadiz, to have returns in Bills on Amsterdam, but when the Remittance reached Cadiz, the Exchange had come down to 104. London also drew on Amsterdam for the Amount of the Re- mittance, at Usance, and the Operation stood thus. Fl. Curr. St. 10000 Piastres at 37d. ^ Piastre c£1541. 13s. 4d. and this sum converted to Florins Cun'ent at 10 Florins XG Stivers ^ c^. Sterling — - 16650 Ducats. 10000 Piastres converted to Ducats z= . ., 7253^ Commission, Brokerage, and Discount =: 517-| 7036 7036 Ducats Current at 104d. Flemish Banco ^ Due. and 3«pCe)it. Discount z= 17734 15 Gain 1084 15 Hence the Gain was about 6 ^ Cent, for 2 Months ; and had the Piastres been negociated at 107, the Gain would have been about 10 ^ Cent, for the above time. The Rules for drawing and remitting upon such occasions have been already explained, and may be thus exempHfied. If 272 Marav. (l Piastre) : 37d. : ; 375 Marav. (I Ducat) : old. Then to find the arbitrated price between Cadiz and Amsterdam. If c£l. Steri. : 10 F. 16 St. : : 5ld. Sterl. : Olfd. Flem. but Am- sterdam gave 104d. instead of~-91|d. the arbitrated price; hence the Exchange was against Amsterdam, and therefore (according to the Rules, page 201) London drew upon the place where the Ex- change was below the arbitrated price, and remitted to the place wliere the Exchange was above the arbitrated price. - 211 EXCHANGE ACCOUNTS, HOW RECORDED IN BOOK-KEEPING. When a Merchant and bis Agent or Factor reside in countries where different CuiTencics are used, the Factor keeps his Em- ployers Accounts in the Currency of his own country ; and the Employer, that their Books may agree, keeps the same Accounts m the same Currency : but be also allots an adjoining column in his Ledger for the corresponding Value in his own Money, by which be ascertains what Profits or Losses may arise from the fluctuation of Exchange. In order to explain such an Exchange Account, the following Example has been selected from the Ledger of a London Mer- chant, who (as appears by the statement) remitted Bills to his Factor at Hamburgh, and drew upon him for his reimbursement, or returns; he therefore debits his Factor for the Remittances, and credits him for the Drafts; the different amounts are first ent<.-red in the inner columns in Banco Marks — and then in the outer co- lumns in Sterling according to the rate of Exchange at which they were negociated— and hence arises the Profit or Loss; thus, if the Merchant buys the Bills which he remits at a cheaper rate of Exchange than he sells the Drafts which he draws on his Fac tor, there is a Gain ; but if othc^rwise a Loss. On the same prin- ciple, if he had paid Debts which he owed, or received Debts due to him at a more advantageous rate of Exchange than those Debts were contracted for, there would have been a Gain, but a Loss if the contrary. An Exchange Account is balanced by first comparing the inner columns: when they are equal, there is nothing due from one party to the other; and the difference between the outer co- lumns is Profit and Loss: but if the inner columns be une* qual, the Balance is what one party owes to the other, whicif QV2 must be carried to the outer column at the current rate of Ex- , change, and then the difference between the outer columns is the < Profit or Loss. I The letters m | a fMy Account J as in the following Example, ' have been already explained (p. 180). The Factor, in stating the • same tmnsactions, annexes to his Employer's name h | a fFlis ■ Account) and their Ledgers are reversed with respect to the Dr. { and Cr. sides. — Thus the Factor, in his account of the following transaction, debits his Employer for the Drafts or Bills drawn on j him, and credits him, for the Remittances which he receives; and, as all the Bills were dmwn in Marks (the Money of the place ] where they were to be {)aid) the Factor has no concern with any j other Money, therefore he debits his Eniployt^r for Commission, { Brokerage, Discount, and Postage, in Marks, for which his Em- \ ployer also credits him, and values those Marks at the cui rent -i rate of Exchange when the Acxiount is balanced. 5 There are other kinds of Exchange Accounts kept between ! Cambists or Dealers in Exchange, who reside in different coun- ^ tries, and who agree to transacfeach other's Business Commission ] free, and divide the Gains or Losses. Such Accounts like all other \ Partnership concerns, require Interest Calculations, according as ' one party may be in advance for the other: this is the case when ; Bills remitted are at a long Date, and Drafts at a short one, or the ■ xiontrary ; but it frequently happens that one party may be in ad- ] vance for sums which have not been received by the other party, ; who is therefore only answerable for the advances in his possession, and the Interests of the remainder should be paid out of the ge- ■] neral Profits. " / Exchange Accounts are kept by Agents, and their Employers, \ in the following manner; and when they are right, the Dr. side j pf one Account is equal to the Cr. of the other, and the inner co- ' lumns of one to the outer columns of the other, and vice versa. ^ ^ h— o ? 8 GO C3 <0 H-i CO H-' t-* O- QO O • 7^ fll^ ;:5 co^?3p g^ Kg 3 8 -^^^^ 8 p- S'^-i P o g c ^ tr a' ^ ^ oq C:o ^ s . s ; o. <^ 7^ 5« ! ^ ? . 1 . o- 1 o Cn o oo *. o 1 ^1 »;^ O O O CO ?- o ^ H-* p ^ 00 o ^ S 03 *0 t-* I— ' -"4^ ^ ,^ D303 CC ^'^ — ,-"< "< ^*< 11 X 3 ^ o 5-r p ?2 en 2 \ V i^ ^ ft) \^^ 9^^ i* ® ■ "^ S o \^ o 03 2. (o ; ^ \ > (0 j_, See o. Or» CO bT p 03 H-i O:^ O ^7 ?-S 'M ^ ^O o OD two departments — the t^ne. under the cMef t^a^hier, and the other, undei' the general ac- tmntmit. The chief cashier, as banker, transacts all the receipts and irayments of morrey, and issues the bank notes, for w^hich Talue is always received, either in cash, bullion, approved bills, or government securities. — The general accountant posts these notes as they are issued, and as they are paid off by the cashier : he also keeps the accotints of the funds, and other public concerns. The method of opening an account whh the bank, is the same as with a private banker, except that, here, no cash account is begun with less than o^500 ; iTor any discount accounl opened, \!ithout the approbation of the court of directors; and every bill cashed, must have on it, at least, two approved names of per- sons resident in or near London. The first employment of a ckrk in the bank, depends on the nature of the office in •vvhich he is placed. If he begin under the chief cashier, in the hall, his employment is similar to that hi a banking house j and, if under the general accountant, he mRECTIONS TO YOUNG CLERKS, Sec. ^Sl will be placed in some of the stock ofFices, where the employ- ments are various; but the books, in every department will be easily understood, by persons acquainted with the objects of tbe tiistitutioa, and the principles of book-keeping. A GENERAL VIEW OF TIIE BANKING SYSTEM. In England there are about 400 Country Banks, and 70 London banking houses, with the Bank of England at their head, which may be considered the great Foundation and Mainspring of the whole. By the joint operation of this system of banks, the trade and commerce of the nation is carried on ; and almost all payments linally settled in Bank of England pa- per: for, since the restriction from paying in specie has been laid upon the Bank, its notes, though not made absolutely a le- gal tender, have answered all the purposes of cash, and are so denominated in the books of bankers and merchants. In Scotland there are tw^o public banlvs and many private ©nes, all of which are nearly on the prhiciple of English coun- try banks. In Ireland there is a national bank, constituted after the |)lan of the Bank of England : also many private banks, similar to those already described. Foreign Banks are, for the most part, called Banks of T)eposit, because the money placed in them u not drawn out, but transferred in payment from one person to another, lik* 6tock in Uie English funds. The principal banks of deposit are those of Venice, Amsterdam, Hamburgh, Berlin, and Copenhagen. In France various attempts have been formerly made, without success, to establish a natia- lial bank ; of late, however, one has been instituted, nearly on the plan of the bank of England i but the business of private bankers there consists only in drawing, negociating, and dis- countiog bills of exchange. FINIS. Published by the same author, Pi'ice Ss. in boardsy A 'PRACTICAL INTRODUCTION TO SPHERICS, AND NAUTICAL ASTRONOMY, Being an Attempt to simplify those useful Sciences; Containing, among other Original Matter, THE DISCOVERY OF A PROJECTION roR CLEARING THE LUNARDISTANCES, IN ORDER TO FIND THE LONGITUDE AT SEA, WITH A 2JEW METHOD OF CALCULATING THIS IMPORTANT PROBLEM ALSO, AN APPENDIX on THE USE AND MANAGEMENT OF TIME KEEPERS, TRANSIT INSTRUMENTS, AND OTHER APPARATUS OF AN OBSERVATORY. AUGMENTED AND IMPROVED. ^old by Johnson, Robinsons, and Riyingtons, London. WHITING, PEINTER, FINSBURY PLACB. GENERAL LIBRARY UNIVERSITY OF CALIFORNIA— BERKELEY RETURN TO DESK FROM WHICH BORROWED This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subject to immediate recall. — «- 1^ (u.t> R 1 1954 Lll \0-'^^' Re vfa ^0' ^ NOV2 0'64-9am iNTERLIBRARY LOAiN JUL 1 7 19S4 JNiV. OF CALIF., BERK. ieiv6«l in JntprSi'irary inm l-100m-l,'54(1887sl6)476 l.D DOOlU M5055?<1 / tfO-6