ri/e/ittti/ 7/p. ^. I'C^f't^ Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/bookkeepingbysinOOduffrich DUFFS' COMMON' SCHOOL BOOK-KEEPING. BOOK-KEEPINa BY SINGLE AND DOUBLE ENTRY, A TEXT-BOOK FOR SCHOOLS, ADD A MANUAL OF PRACTICAL mSTRUCTION FOR BUSINESS MEN. BY C. p. DUFF, W. H. DUFF, and R. P. DUFF. NEW YORK: HARPER & BROTHERS, PUBLISHERS, FRANKLIN SQUARE. 188 0. 3^3 Entered according to Act of Congress, in the year 1877, by HARPER & BROTHERS, In the Office of the Librarian of Congress, at Washington. PREFACE. A TEXT-BOOK on Ibook-keeping, compact in form, moderate in price, embodying all the most recent im- provements of the connting-room, and adapted to the wants of schools as well as to the needs of ordinary business, has long been a desideratum. The work now given to the public seeks to meet this demand. In order to fit the book to the purposes of school in- struction, no labor has been spared to render the principles of the science clear and simple ; to unfold them in a pro- gressive manner ; and to apply them in new and varied illustrations. It has been the aim to produce a working text-book, in which the study shall be stripped of needless difiiculties, and the essentials of practical book-keeping set forth in a way which, it is hoped, will be found easy both to learn and to teach. In addition to its school use, this manual is intended to furnish practical instruction, not only to the wholesale merchant, but also to the farmer, the mechanic, and the retailer. To those in the occupations and lines of business named, it is believed that it will be a recommendation of this work that in it only such terms as are in universal and constant use among business men are introduced ; that unreal and improbable transactions are avoided ; and that the whole aim and purpose of the work is to exemplify book-keeping in use as. wdl as in theory. ^ 438555 Blank books, consisting of a Day Book, a Journal, a Ledger, and Auxiliary Books, have been prepared expressly for this work. They are properly ruled for writing all the examples it contains and have the author's directions to teachers printed upon the covers. BOOK-KEEPING SET L— SmGLE ENTRY BOOK-KEEPING. ILLUSTRATED BY A SET OF BOOKS SHOWING THE METHOD OF ASCERTAINING PROFITS AND OF CHANGING SINGLE ENTRY INTO DOUBLE ENTRY BOOKS. 1. This illustration of Book-keeping by Single Entry is given solely for the benefit of mechanics, farmers, tradesmen, and others who desire only a sufficient knowledge of accounts to keep the Books of a small business in which the more accurate and scientific Double Entry is not required. The pupil who studies the Double Entry need only give this a careful perusal, as the principles are very simple, and more fully em- bodied hereafter in the Double Entry sets. 2. The principal Books used are — The Casll Book, which shows the receipt and payment of all money. The Day Book, which is a complete record of all transactions written in the order of their occurrence, with full particulars of each. 5 .SET. I.^.Sm.GIvE. ENTRY BOOK-KEEPING. The Ledger, which is used for condensing and classifying the transactions recorded in the Day Book. It contains an account for every person you buy from or sell to. Your dealings with each, although ex- tending over a long period of time, and entered on many different pages of your Day Book, are here collected in a small space on one page, under the individuals or firms named. It thus enables you to readily ascertain the amount due to you from any firm or individual, without going over your Day Book and sifting its contents for each debit and credit. 3. Other auxiliary Books are used, but they vary in number accord- ing to the requirements of the business. We will not attempt a descrip- tion of them or their uses here, as we desire to make the introductory set as simple as possible. Tlie various Books that are bound together here for convenience are, when used in business, bound separately. RULES FOR DEBITING AND CREDITING ACCOUNTS. Ques. 1. What is the Rule for opening your Books when you are alone in business ? Ques. 2. What is the Rule for opening Books when two or more persons are partners ? Ques. 3. What is the Rule for debiting the accounts of persons you sell to ? Ques. J/.. What is the Rule for crediting the accounts of persons you sell to ? Ans. 1. The Stock Account^ which represents myself, must be credited for all that I possess, and debited for all that I owe. Ans. 2. Each Partner''s Account must be credited with what he pays in as capital, and debited with what he owes and draws out. Ans. 3. When they get into my debt I debit them for the amount. Ans. If.. When they get out of my debt I credit them for what they pay or cease to owe me. 6 SET I.— SINGLE ENTRY BOOK-KEEPING. Ques. 5. What is the Rule for crediting the accounts of persons you buy from ? Ques. 6. What is the Rule for debiting the accounts of persons you buy from ? Ans. 5. When I get into their debt I credit them. Ans. 6. When I get out of their debt I debit them for what I pay or cease to owe them.i 1. When a discount or deduction is made by another for you, or by you for another, such discount must be included in the debit or credit on your books, just the same as if it were cash. If you allow a discount, the person who pays gets credit with what " he ceases to owe," which is the amount of the cash paid, and the discount allowed. If a person allows you a discount, you must, by the rule, debit him with what you " cease to owe " — which in this case is the amount of the cash paid, and the discount allowed. See Day Book entry Dec. 1, and questions 1 and 2, p. 11, where you cease to owe, and debit Havemeyer & Co. with $300, when the amount paid was only $294. DIRECTIONS TO TEACHERS. 1. After the student has committed to memory the foregoing rules, let him write up the Day Book of this set for the month of October. Its form is so simple, and each transaction is recorded in such plain terms, that only a few directions and explanations are required : The figures in the left-hand marginal column, which is headed " Ledger Folios," must not be copied with the rest of the Day Book, but are to be inserted afterwards, when the contents of this Book are posted or trans- ferred to the Ledger. For instance, the first entry of the Day Book is taken to the credit side of Stock Account in the Ledger ; then to show on what page of the Ledger the Day Beok entry has been posted, the folio or page of the Ledger that the " Stock Account " is on must be SET I.— SINGLE ENTKY BOOK-KEEPING. entered in the column referred to. This post mark, or figure, as it is often termed, shows what entries have been posted, and is also a direct reference to the Ledger page in checking. 2. In posting, require the student to enter first the amount, as it is of the utmost importance to have the dollars and cents correctly transferred ; second, the date ; third, the explanation ; fourth and last, the Day Book page. The student must then insert his post mark or Ledger page in the marginal column of the Day Book, headed "Ledger Folios." 3. When the October transactions are all posted, the student must com- pare the items in the Day Book with his entries in the Ledger, to see that he has omitted nothing in posting, and made no mistakes in anything transferred. As each entry is examined and found correct, he must check mark it thus y' in lead-pencil, on the folio column of the Day Book, and in the Ledger thus . on the left of the dollar and cent columns, i. e., on the column which divides the Day Book folios and dollar column. 4. After posting the October transactions, let the student go over the business of each month in the same manner, until all are posted and checked. We prefer to have the student write up, post, and check one month at a time, as lie often gets a wrong impression if he only posts once in each three months' business. NEW YORK, October 1, 1§74:. 2 I have this day commenced business with a capital of cash in hand 3 Wilson Brothers, Cr. For Mdse, per invoice, Chas. E. Hill & Co., Cr. For Mdse. per invoice. Arbuckles & Co., Cr. For Mdse. per invoice, 4Wm. McKown, Dr. For 2 lbs. Tea, $1.50 ; 1 lb. Pepper, 50c. " 1 bbl. Flour, $3.00 8.00 Samuel Mathews, Dr. For 10 lbs. Sugar, $1.00 ; 1 Ham, $3.50; 3 lbs. Candles, 40c. - ====== lO ===== Fairbanks, Morse & Co., Cr. For 1 Platform Scale, $75.00 " 1 Counter « 25.00 15 D. A. Sweeney, Dr. For amount of Groceries furnished Jos. Eckly on his order, - ============= 25 Fairbanks, Morse & Co., Dr. For my order on Park Bro. & Co., _____ _ n Park Bro. & Co., Cr. For my order on them, ... ^ What are the fij^ures in the left-hand column, and when are they to be inserted ? Ans. Ledger pages, and they are to be inserted when the amount is posted, and not before. * What rule applies to this entry ? Ans. Rule 1. 3 Why credit Wilson Bros. ? Am. Rule 5 requires me to do 80. * Why debit McKovvu ? Am. Ue gels into my debt. Rule 3. 9 NEW YOKK, November 1, 1874. 1 Wilson Brothers, Dr. For Cash paid them in full, . tr . Chas. E. Hill & Co., Dr. For Cash paid them in full, // . . Arbuckles & Co., Dr. For Cash paid them in full, ===== 5 ===== T, G. Stewart & Co., Cr. For 100 bbls. Flour per invoice, // . Havemeyer & Co., Cr. For 10 bbls. Syrup per invoice, , // , 2 W. W. Swain (New Orleans), Cr. For 15 bbls. Molasses per invoice, Dr. " Cash paid his draft on me at sight, - 15 ===== Wm. McKown, Dr. For 1 box Raisins, $3.00 ; 2 Brushes, |1.50 - - - - $4.50 " 20 lbs. Rice, $1.80 ; 2 lbs. Tea, $1.20 ... - 3.00 n H. D. Beerhman, Dr. For 1 bbl. Molasses, 45 galls. , @ 90c. John Craig, Dr. For 5 bbls. Molasses, 225 galls., @ 90c. ==^= 25 — — T. G. Stewart & Co., Dr. For my note at 80 days in settlement of their acc't, . - - . ' Why debit Wilson Bros. ? Ans. By Eule 6,' I debit them for what I pay, or cease to owe them. '^ It is not necessary to carry this credit to the Ledger, as the purchase was paid for on the same day. An entry like the above is suflicieut. 10 NEW YORK, December 1, 1874. 1 Havemeyer & Co., Dr. 2 For Discount allowed on bill of Syrup, $6.00 " Casli in full, • 294.00 // \Vm. McKown, Cr. For C'asli on account, _^ // 3 Samuel Mathews, Cr, For Casli in full, ====== 5 === James Moon, Dr. For 25 bbls. Flour, @ $7.50 5^ . // . J. R. Hanna, Dr. For 50 bbls. Flour, - - @ $7.50 rz========= lO James Moon, Cr. For Ms note at 30 days in settlement of acc't, ===== 20 - H. Todd, Dr. For 20 bbls. Flour, @ $7.50 $150.00 Cr. By Cash on account, 50.00 ^ . /r Win. Byrne, clerk, Dr. For Cash on acc't of his services, ^ 31 ====== D. A. Sweeney, Cr. For bill of repairs to warehouse, . — - — /' ^ Wm. Byrne, Cr. For 1 month's services as clerk, ---------- ^ Why debit Uavemeyer & Co. ? Ans. Because Eule 6 requires me to debit those I pay, or cease to owe. ''■ Why is the discount charged to them ? Ans. Because, when they agree to take a sum less than tbe amount I owe them, I get out of their debt for the whole amount. 3 When an account is paid in full, and the payment is posted, it must be "ruled off" on the Ledger. 11 statement li^xliibiting my Gain, Dec. 31, 1874. Amount due me by Wm. McKown, - - - " " to D. A. Sweeney, « to Park Bro. & Co., - - - - " " me by H. D. Beerbman, - •- - " " " by John Craig, " " " by J. R. Hanna, - - - - " " by H.Todd, " " to Wm. Byrne, " of Cash on band per Cash Book, - " of Mdse. on hand in store, - - - " due me on notes (Bills Receivable), " I owe on my notes (Bills Payable), My total Effects amount to " " Liabilities to be deducted are - - Amount of my Capital at date, " of my Capital Oct. 1, 1874, - - - " of my Gain in 3 mos. business, - - EFFECTS. 50 40 50 302 50 375 100 2784 90 254810 187 50 G246 831 5415 5000 415 LIABILITIES. 16 100 40 675 1. To ascertain the gain or loss by Single Entry, follow the above form, and take from your books a list of the debts that you are owing various firms and individuals, and a list of the debts due you from firms and individuals. Add to this the amount of Cash, Mdse., and Bills Receivable on hand, and the amount you owe on your notes. In this way you obtain a complete list of what you are worth (Effects) and of what you owe (Liabilities). Deduct what you owe from what you are worth, and you have your net worth, or net capital, as it is termed. You will find above that on Oct. 1, your net capital was $5000, and on Dec. 31, it was $5415 — an increase of $415, which is the gain on the business, and must be carried to the credit of your Stock account in the Ledger. 2. In business, experts omit the explanatory words wo have added in making up a list of Effects and Liabilities. Business men never complain of a book-keeper for making too clear an exhibit of their business, 12 00)00^0 ^^'^ :i : e s^^ ^ ^ S=^^ ' S «" , ^2 . 2 o S4 O O ffl en <^ o w h ^^ CO (3 CO 5«r a 11 O >^ O -t-3 .22 P5 '^ MH iS fee a i § PJ c3 (D ctf rl a 'hJ rt ft ^ n ^ ^ TS tfl c« 2 o --§ ^ o3 «« ^^ ^ 'o c .1-; 03 -I I ^ ri ^ ^ ^ cc <15 .2 , CO S3 O O "^ § <^ a^ «3 o o - ._. CO ,^ rd O O 4^ o ^ --^ 1 o ':^ (o ri & CO g "^ O TO cc O o o O C3 ■« 5 .S § 03 S3 "Eh X o cTCq o « o ^ H >^ . o °1 O .T5 ^ O TO ' CO >-' i3 r^ o &c ^ ^ "^ ^ - '^ o c3 vV o CD ^*' 13 Dr. {m at I owe) STOCK (Representing i nysclf) ACCOUNT (mat I possess) Cr, 1874. Dec. 31 Balance (net cap.)/. 5 5415 5415 — 1874. Oct. Dec. Dec. 1 31 31 For Cash, - - - " Net Profits, - 1 4 5000 415 5415 5415 Bal. bro't down, - 1. Where do yon ^et the credit of $415 ? 2. What does the balance of $5415 roprc- eent? 3. When is this account closed ? 1. From the statement of Gain, D. B,, p. 4. 2. My net capital. See statement, D. B., p. 4. 3. See T i, p. 18. (mat 1 pay them.) WILSON BROTHERS. (What I owe them.) 1874. Nov. 1 For Cash, - 1874. 2 500 Oct. 1 ForMdse. - 1 500 1. What Rules guide you in making entries 1. Rules 5 and 6. for Wilson Bros, account ? 2. When do you credit their account ? 2. When I "buy from Wilson Bros. 3. When do you debit it ? 3. When I pay or cease to owe them the amount they are credited with. (What I pay them.) CHAS. E. HLLL & CO. (What I owe them.) 1874. Nov. 1 For Cash, 2 150 1874. Oct. 1 For Mdse. 150 1. Why close Chas. E. Hill & Co.'s acc't ? 1. I have paid the amount due them, and draw closing lines to separate what is paid from future transactions. ARBUCKLES & CO. 1874.1 Nov. 1 For Cash, 875 1874. Oct. 1 ForMdse. Note.— The pupil must be able to answer the questions under different accounts before he attempts the work of closing, and should have his manuscript Ledger open before him when doing BO. 14 Dr, (What he owes me.) WM. McKOWI^. (Wliat he pays me.) Or 1874. Oct. Nov. Dec. 31 For Mdse. " do. Bal. bro't down. 11874. 1 10 Dec. 1 2 7 17 7 50 50 50 <( 31 For Cash, Balance. • /. 3 10 5 7 17 1. Is McKown's acc't the same as the three 1. No ; this is an acc't with a person I am preceding ones ? selling to. Eefer to Wilson Bros, acc't. (What he owes me.) SAMUEL MATHEWS. (What he pays me,) 1874. Oct. 5 For Mdse. 1874. 3!90l Dec. 1 For Cash, - 3 3 90 1. What Enles apply to Mathews acc't ? 2. Why is it closed ? 1. The 8d and 4th. 2. To show the settlement and separate what is paid from future transactions. FAIRBANKS, MORSE & CO. 1874. Oct. 25 For my order, - 100 1874. Oct. 10 For 2 pr. Scales, 100 I>. A. SWEEISTEY. 1874, Oct. Dec. For order on me, - Balance, - - - /. 41 1874. Dec. Dec. 31 31 For bill of Repairs, Bal. bro't down. 41 PARK BRO. & CO. 1874. Dec. 31 Balance, / 100 1874. Oct. Dec. For my order, - - Bal. bro't down, - 100 100 1. Why is the "-Balance " in italics ? 1. To show that it must be written in red Ink when Inserted for the purpose of closing an acc't. 2. Is it to he written in red ink when It is 2. No ; I bring it down In black mk. bro't down to re-open an acc't? 15 Dr. T. G. STEWART & CO. Or. 1874. Nov. 25 For my note, - - 3 675 1874. Nov. 5 For Mdse. 2 675 — (What I pay or cease to owe.) HAVEMEYER & CO. - (^'hat I owe them.) 1874. Dec. For Discount, " Casli. - 3 6 294 300 — 11874. jNov. 5 For Mdse. 300 300 1, Why do you charge discount to Have- 1. Because they allow this disc't for prompt meyer «fe Co. ? payment, and as I cease to owe them, I debit them according to Kule 6. H . D. BEERHMAIS^. 1874. Nov. 15 31 For Mdse. - - - 2 40 40 50 5"0 1874. Dec. 31 Balance, - / 5 40 50 Dec. Bal. bro't down, - • JOHN CKAIG. 1874 Nov. Dec. 20 For Mdse. - - 31 Bal. bro't down, 202 202 1874. Dec. 31 Balance, /. 5 202 50 Note. We bring balances down under date Dec. 31, the day the hoolis are closed. Many pre- fer to bring them down on the next date, which in this case would be Jan. 1. JAMES MOON. 1874. Dec. 5 For Mdse. 1874. 1871501 Dec. lOlFor note at 30 ds. - 3 187 50 J. R.-HANNA. 1874. Dec. Dec. For 50 bbls. Flour, Bal. bro't down. 375 375 1874. Dec. 31 Balance, /■ 375 1. Why is the closing or balance entry 1. To show the entry is taken to or from marked fol. — ? some acc't in the Ledger— not from the D. B. 2. Isit ofany ftirtheruse? 2. Yes; it enables me to distinguish my permanent debits and credits at a glance. 16 Dr. H. TODD. Cr. 1874. Dec. 30 31 ForMdse. - - - 3 100 100 = 1874. Dec. 31 Balance, - - /. 5 100 Dec. Bal. bro't down, - WM. BYRNE. 1874. Dec. 20 31 For Casli, - - - Balance,- - - f. 3 5 10 40 50 — 1874. Dec. Dec. 31 31 For 1 mo. salary, - 3 50 50 40 Bal. bro't down, - CASH ACCOUNT. 1874. Dec. 31 31 For am't on hand, 4 2784 2784 90 90 1874. Dec. 31 Balance, - - f. 5 2784 90 Dec. Bal. bro't down, - See note 2, Ledger, fol. 5. MERCHANDISE ACCOUNT. 1874. Dec. 31 31 For am't on hand. 4 2548 2548 10 10 1874. Dec. 31 Balance, - - f. 5 2548 10 Dec. Bal. bro't down, - BILLS RECEIVABLE. 1874. Dec. 31 31 For notes on hand. 4 187 187 50 50 1874. Dec. 31 Balance, - - /• 5 187 50 Dec. Bal. bro't down, - BILLS PAYABLE. 1874. Dec. 31 Balance, - - /• 5 675 11874. Dec. Dec. 31 31 For my notes un- paid, - - - - 4 675 675 Bal. bro't down, - 1. Where do you get the items for the last 1. From the statement on Day Book, p. 4. four accounts ? 2. By counting the cash, taking an inven- 2. How are they ascertained ? tory of Mdse. on hand, making up a list of the notes on hand and of the notes I owe. B 17 5 Dr. (Effects) BALANCE ACCOUNT. (Liabilities) Cv 1874 Dec, Wm. McKown owes me,/ H. D. Beerhman " Jno. Craig " J. R. Hanna " H. Todd Cash on hand, - - Mdse. on " - - Bills Rec. on hand, Net cap., 5415 1 1 1874. 2 7'50 Dec. 31 3 40 50 202 50 8 375! " " 100 ! u 4 27&4 90 2548 10 u 187 50 6246 i| Due D. A. Sweeney, - / Park Bros. & Co. - Wm. Byrne, - - - on my Notes, ... 831. on Stock for my net Capital, - - - - 2 16 ii 100 4 40 " 675 1 5415 6246 1. This account is a condensed statement of your affairs. It is a complete inventory of your Effects and Liabilities at the time of closing your books, and is placed on the Ledger for reference hereafter. It is made up by closing into it every account on the Ledger that shows debts due to you or due from you to others. The Stock account, which represents yourself, is the last account closed. The Rule for closing is, that All debits are Effects and all credits Liabilities. When the debit side of an account is the larger, it represents or shows a part of your effects, and the amount is placed on the Br. side of Balance, and when the credit side of an account is the larger, it shows a part of your liabili- ties, and is taken to the Or. side of Balance. Examine the accounts as we have closed them. When all the accounts, except Stock, have been closed into Balance acc't, add both sides, and place the footings in pencil to the left of the money columns, in the margin, as shown above ; then subtract the less from the greater side, and the difference is the net amount you pos- sess, or the sum that remains after deducting what you owe. The Stock acc't shows what the concern owes you for capital invested and profits earned, and if your work is correct, this amount will be the same as the difference between the two sides of your Balance acc't. Thus, your Stock acc't on fol. 1 shows that the concern owes you for capital and profits to date $5415, and the Balance acc't shows that after your debts are paid, the concern is able to pay you $5415. The Stock acc't is then closed into Balance, and closes it, as shown above. 2. We have re-opened Cash, Mdse., Bills Receivable, and Bills Payable to show that our method of closing a Single Entry Ledger admits of re-opening the same Ledger by Double Entry. This is a decided improvement on the old plan of changing from Single to Double Entry, which is to open entirely new books. 18 MERCANTILE TERMS, SIGNS, AND ABBREVIATIONS IN GENERAL USE. Acc't Current. — A statement of a running account with or without interest. Acc't Sales. — A statement showing sales of goods made for others. Am't. — Amount. Acc't or %. — Account. Acceptance. — A draft with the drawee's formal promise to pay writ- ten across its face. Bal. — Balance. Bbls. or Brls.— Barrels. Bills Pay.— Bills Payable. Bills Bee. — Bills Receivable. B. B.— BiU Book. Bo't.— Bought. Bro't. — Brought. Check. — An order for money drawn on a bank or banker. C. B.— Cash Book. Co. — Company or County. Cr. — Credit or Creditor. Closing an acc't. — To make it even. Closing lines. — Lines that are drawn in acc'ts to separate old from new transactions. Counter Entry.— An entry made to balance one made on the opposite side of an account. Consignment.— A shipment of goods to another for management or sale. Cartg.— Cartage. C/o.— Care of ; thus, C/o P. Duff & Sons. D. B.— Day Book. Dr. — Debtor or Debit. Do. — Ditto — the same. D'ft.— Draft. Dray. — Drayage. Draft. — An order for money drawn on a person at a distance. Disc't. — Discount. Discount.— A deduction from a bill or an account for prompt payment, or the amount deducted by a bank for loans on notes or drafts. D's.— Days. Doz. — Dozen. Days of grace. — Three days' time allowed by law for the payment of notes or acceptances after the ex- piration of the running time. Dividend. — The division of profits. Drawer. — The maker of a draft. Drawee. — The person on whom it is drawn. Due Bill. — A written acknowledg- ment of a debt payable on or after demand. E. E. — Errors excepted. E. & O. E. — Errors and omissions excepted. Exch. — Exchange. Endorse. — To write your name across the back of an obligation on paper, thereby guaranteeing its pay- 19 MERCANTILE TERMS, SIGNS, AND ABBREVIATIONS. ment to subsequent holders or en- dorsers. Ent.— Entered, Full extend.— To extend figures into the outer money column. Footing an acc't.— To add it. Footing lines. — Lines drawn across money columns before adding them. Fol. or F.— Folio. Folios. — The pages of the Ledger, so termed because they are divided in two parts — Dr. and Cr. Fr't.— Freight. Galls, or G.— Gallons. Hhd. — Hogshead. Honor a draft.— To accept it. Hf.— Half. I. B. — Invoice Book. Inventory. — A list of goods on hand. Insolvency. — To owe more than you possess. Inv. — Invoice. Inst.— Instant — the present month. Int. — Interest. Long extend. Lbs. — Pounds. —See " Full extend. See Signs, p. 21. Mos. — Months. Mf g . — Manufacturing. Mdse. — Merchandise. Maturity.— The day on which a note or acc't is due or payable. K"/A. — New account. N/P. — Net proceeds. N/G.— Net gain. N/C OT Net Cap.— Net Capital, or what you possess after deducting the debts you owe. No. — Number. See Signs, p. 21. Order. — Written authority for the delivery of goods or money. P'd.— Paid. Pay m' t . —Payment. Ps. or Pes,— Pieces. Prox. — Proximo — ^next month. Prem, — Premium — an advance on the face or par value of anything. Par. — The face of a note or draft ; the original value set forth on its face. Policy. — The contract with an insur- ance company. Protest. — The written and formal proof of demand and notice required by law of the dishonoring of notes, drafts, or checks. P. or Pt.— Pint. P. M, O. — Post-office money order. Q. or Qt. — Quart. Rec'd. — Received. Ret'd.— Returned. Renewal of a note. — Extending its time of payment by taking a new note. Receipt. — A written acknowledg- ment of the receipt of money or any- thing else. 20 MERCANTILE TEKMS, SIG:NS, AND ABBREVIATIONS. Solvent. — Possessing more tlian you owe. Short extend. — To extend figures into tLe inner money column, or to the left of a money column, if there be but one. S. B.— Sales Book. Signature. — Your name written by yourself. Sgt.— Sight. Sks.— Sacks. Stg.— Sterling. Sq. — Square. Signs : ^— Per cent. ; thus, 10%. @— At; thus, @$1.50. 8110 — Eight by ten inches. 12ll{. — Twelve quarters of a yard. £— Pounds sterling. $— Dollars. ^— Cents. It— Preceding a figure (thus, % 10) means number. S — After a figure (thus, IDS), means pounds. // —Ditto marks. See " Do." i,^/^i/7^— Twelfth month (Dec.) and thirty-first day, 1874. Tc— Tierce. Tare. — A deduction or allowance for weight of packages. Ult. — Ultimo^last month. Via. — By way of. Yds.— Yards. 21 SET IL— DOUBLE ENTRY BOOK-KEEPING. INTRODUCTORY. Having illustrated Single Entry, we now propose to instruct the pupil in the more difficult, but complete Double Entry. The chief points of difference are these : Single Entry pertains only to the keeping of your accounts with individuals or firms ; Double Entry shows your accounts with persons, and also your expenses and losses, your gains and their source. In addition to this, the main feature of every debit having its corresponding credit, creates a safeguard against error. THE VARIOUS BOOKS AND THEIR USE. THE DAY BOOK. 1. This book requires but little explanation. Although it is an impor- tant book, because, when used without auxiliaries, all entries originate in it, yet its form is much a matter of taste. It is necessary that the various transactions that occur be at once entered upon it in their regular order, with the particulars pertaining to each. In this book we have stated the transactions at length to make everything clear to the learner; but in business the entries may be materially shortened, and still be complete. This will answer where all who have access to the books are experts, but the many omissions and abbreviations, easily understood by them, would bewilder a student if given here. When an error is made in this book, do not attempt to erase it, but run your pen through it, and make a cor- rected entry elsewhere. By a marginal note, such as, " See entry below," or " See entry, p. — ," you may refer to an entry that is made in the place of one that has been cancelled. The Day Book is your best witness when compelled to appeal to the courts for the collection of accounts, and erasures create a doubt as to the accuracy of its records. 2. Sometimes the Day Book is dispensed with, and in its place a Sales Book, Invoice Book, Cash Book, and Bill Book are kept, as we explain and illustrate in a subsequent set. 22 SET II.— DOUBLE ENTRY BOOK-KEEPING. JOURNAL. 1. The Journal is a book in wliicli the Day Book transactions are condensed and arranged in a form convenient for posting or transferring to the Ledger with accuracy. Where a Day Book contains items affect- ing several accounts on the Ledger, it would be diflScult to post accu- rately from it to the Ledger. By the use of the Journal this difficulty is obviated, for in it we give the name of the account that is to be debited, and place opposite to it the amount ; then the credit, and opposite to it the amount. If there be a number of debits and credits arising from one transaction, we give the name of each account that is to be debited and credited, with the respective amounts opposite. 2. To illustrate the use of- the Journal, we take the following Day Book Entry : Bo't of James Brown, for Cash, 10 bbls. Flour, @ |7.50 $75. The Journal of this transaction would be — Mdse. account, Dr. |^^ To Cash account, 75 3. It is essential that the Day Book should give particulars of every transaction ; and to prevent omissions and errors in posting to the Ledger, it is equally important to get rid of these particulars. This is accom- plished by the use of the Journal, which divests the Day Book entry of everything but the name of the account to be debited and the amount, and the name of the account to be credited and the amount. 4. The Journal is ruled with double money columns — the one on the left being for amounts to be posted to the debit side of their respective accounts on the Ledger, and the one on the right for amounts to be posted to the credit side of their respective accounts. The amount to be deb- ited or credited should be the first thing posted in the Ledger account The debits and credits of each Journal entry must be equal in amount. 23 SET II.— DOUBLE ENTKY BOOK-KEEPINGL THE LEDGER. 1. Tlie numerous transactions which fill many pages of the Day Book are condensed into a small space in the Ledger, so that the condition of an account may be seen at a glance. The cost of all goods you buy is gathered on the Dr. side of the Mdse. acc't, and the amount of sales on the CV*. side. If all the goods are sold, the difference between the cost and sales represents your gain or loss on Mdse. In the Cash acc't you gather on one side all the money received, and on the other, all the money paid out, and the difference between these amounts is the balance on hand. In the Bills Rec. acc't you gather all notes received on one side, and on the other, all notes that are paid and handed back to those who issued them. The difference between the notes received and those paid is the amount of notes you hold against others. 2. Accompanying the Ledger is a small book called the Index, trimmed so as to display the letters of the alphabet, one of which is pasted on each page. In it you write the name of an account and its page before it is opened. Thus, if you are to open an account with H. K. Thurber h Co. on p. 5 of the Ledger, you first turn to the page of this book on which the letter T is pasted and enter it, " Thurber, H. K. & Co., 5." 3. The Ledger is ruled with a triple line down the centre to separate the Dr. and Cr. sides. The space to the left of this line is for debits, and to the right for credits. Each side is subdivided, and has columns for the month, day of the month, explanations, folios, dollars and cents. 4. In Single Entry books we keep but one class of accounts, viz., Per- sonal ; while in Double Entry, three classes are kept : Firsts Personal accounts with firms, corporations, or individuals. Second^ Property accounts, to show cost and revenue from Real Estate, Mdse., Bank Stock, Steamers, &c. Third, Profit and Loss accounts, to show losses, expenses, and gains. All gains, losses, and expenses may be kept under one head, or under different heads, such as Expense, Interest, Rent, Taxes, &c. 24 SET II.— DOUBLE ENTRY BOOK-KEEPINa. RULES FOR JOURNALIZING. Ques, 1. What is the general Rule governiog all Journal entries ? Ques. 2. What is the Rule for opening entries ? (See ^t 1 and 2, p. sa) Que8, 3. When do you debit a personal account? (See t 3, p. 26.) Ques. Jp. When do you credit a personal account ? (See If 3, p. 26.) Ques. 5. What is the general Rule for receiving and delivering property ? * Ques. 6. What is the special Rule for debiting property ac- counts ? (See 1 4, p. 26.) Ques. 7. What is the special Rule for crediting property ac- counts ? Ques. 8. What is the Rule for debiting and crediting Profit and Loss? Rule 1. The Debits and Credits of every Journal entry must be equal in amount. Rule 2. The Stock acc't repre- sents myself, and must be debited for what I owe, and credited for what I possess. Rule 3. When a person gets into my debt, or I get out of his debt, he is Dr. for the amount ? Rule Jf. When I get into a per- son's debt, or he gets out of my debt, he is Cr. for the amount. Rule 5. The thing received is always Dr. ; the thing delivered is always Cr. Rule 6. When property becomes minfe, I debit it for its cost or value, and if it costs me anything after- wards, I debit it for that cost. Rule 7. When property brings me in anything, I credit it with the amount, and when it ceases to be mine, I credit it with its value, or what I receive for it. Rule 8. Profit and Loss account is always debited when I lose, and credited when I gain. * The thinfrs received and delivered usually consist of Cash, Mdse., and Notes, and the learner in reading a Day Book entry should, first of all, ascertain if anything had been received or delivered in the transaction. 25 RULES FOR JOURNALIZING. Ques. 9. What is a Bill Receiv- able? Ques. 10. What is a Bill Pay- able? Ques. 11, What is classed under the head of Mdse. ? Ques. 12, What is classed under the head of Cash ? Rule 9. Any obligation on paper which I hold against others is a Bill Receivable. ' Bule 10. Any obligation on paper held by others against me is a Bill Payable. Bule 11. All goods that I buy to sell again. Bule 12. All checks, sight drafts, bank notes, or anything that is equivalent to money. 1. Where the term "Stock" is used in the Journal or Ledger, it al- ways refers to the account representing myself, and in which I keep a record of the capital I have invested. It never refers to goods in store. 2. The first, entry on a Day Book, when beginning business, is a statement of what you are worth, and what you owe, and we term it your opening entry. Sometimes, when the items are numerous, two entries are made, one of which shows your Effects and the other your Liabilities. Rule 2 applies to these opening entries, and so rarely to any subsequent ones that we say to the learner : " As soon as you have journalized the opening entry or entries, set Rule 2 aside." 3. The attention of the teacher is directed to Rules 3, 4, 5, and 6, in Set I., p. 7. If the condensed Rules we now give are not readily under- stood, it may assist the learner to make use of those on p. Y. 4. Another Rule for debiting and crediting property accounts is, " The receivitig account is Dr. to the imparting account." That is, an account receiving a benefit is debtor to the account imparting it. Thus, if you sell a bbl. of Flour for cash, Mdse. acc't imparts the benefit, and Cash acc't receives it ; therefore, the entry would be — Cash, Dr. To Mdse. 26 SET II.—DOUBLE ENTRY BOOK-KEEPINa. DIRECTIONS TO TEACHERS. 1. Let the pupil write up tlie Day Book for the month of January only. It is our experience that he will obtain a clearer understanding of the routine of Book-keeping by carrying the business a month at a time, from the Da)^ Book through the Journal to the Ledger. 2. Notify the pupil that the explanations are not to be copied with the Day Book transactions. 3. A line must be drawn to separate the entries, and when the date changes, this line must be double, and the new date must be inserted mid- way between the marginal line and the dollar column. 4. After the Day Book for January has been written, let the pupil make the Journal entries on a slate. After pointing out any errors he may make, let him repeat the operation as often as may be necessary to insure a thorough understanding of the process. This part of the work requires patience on the part of the teacher, and perseverance on the part of the pupil. The teacher should fully explain the process of Jour- nalizing, showing the pupil how to analyze Day Book entries in .order to determine the debits and credits for the corresponding Journal entries, explaining the various Ledger accounts and pointing out the applications of the Rules already committed to memory. Some pupils will be aided and enlightened by such explanations, while others make better progress by following a Rule arbitrarily. 5. When writing up the Journal, leave a blank line between cac^i entry, and rule it as directed in paragraph 3, above. 6. After Journalizing one month, the entries should be compared with the Day Book, and, if correct, should be checked on the Day Book in pencil, on the left of the marginal line. Then post and check, as directed, pp. 38, 39, 40, and so with the months of February and March. 7. We give in the Day Book and Journal of this set a series of ques- tions and answers that are not intended for the pupil to memorize, but as aids to the teacher, who will find them full and complete. The transac- tions are limited, to enable us to devote more space to explanations. 27 NEW YORK, January 1, 1875. On commencing business this day, I liave tlie following assets : Cash on hand, - - - $4000 I hold Chas. E. HiU & Co.'s note for 1000 Making the total amount I possess Ques. 1. This being a statement of what you possess when you begin business, what kind of an entry is it termed ? Ques. 2. What Rule for Journalizing applies to it ? Ques. 3. What does the Rule direct you to do with what you possess ? Ques. If.. Is the $5000 credit for your Journal all you require? Ques. 5. Do you receive anything into the business ? Note. After sifting the entry, we find Cash account and Bills Eeceivable account are both debtor to me (Stock acc't) ; therefore, to form oar Journal entry, we say that " Sundry acc'ts are debtor to Stock acc't," and extend the amount into the credit column of the Journal. Cash acc't is Dr. for $4000, which is stated, and the amount extended into the Dr. column, and the same with Bills Rec, which is Dr. for the note we hold against C. E. Hill & Co. My liabilities are Ques. 1. This being the amount you owe on commencing busi- ness, what Rule will apply to if? Ques. 2. What are opening entries? Ques. 3. What account do you debit for this am't ? Ques. 4' Why? Ques. 5. What is required to complete this entry? Ques. 6. You owe Belt & Cilley this amount ; look over your Rules and see if you can find one relating to personal accounts. Note 1. We have endeavored to make our series of "Ques." and "Ans." complete, that they may always be an ever-ready and convenient assistant to the student, and so lessen the labor of the teacher. It may appear to some persons that there is needless repetition in the many ways we endeavor to unfold and fix in the student's mind the various principles, but practical in- structors will fully appreciate the advantage of this drilling. Note 2. The matter in small type is not to be transcribed by the student when writing his Day Book, but is intended as an exercise to assist him in Journalizing, and should have his close attention. Note 3. The student should read the abbreviations on pp. 19, 20, 21, and use them when he can. Note U. As the Journalizing proceeds, each entry must be marked off in ink, as on the left margin of the above entries. 28 a CL /• I NEW YORK, January 1, 1875. Dr. Or. 1 Sundry accounts, Dr. To Stock acc't, ------- Casli account. Dr. ------------- Bills Receivable account, Dr. --------- Ans. 1. An opening entry. Ans. 2. Rule 2 applies to all opening entries. Ans. 3. To credit the Stock acc't (wliick is myself) with the am't. Ans. 4. No ; Rule 1 requires that I must have an am't in the Dr. column to equal the credit. Ans. 5. Yes ; I receive into the business Cash $4000 and Bills Rec. $1000, and by Rule 5 I must debit them. Note. Observe that we have divested the entry of all surplus matter, leaving only the name of the accounts to be debited and credited, and the amount for each. Read p. 23. Each Dr. and Cr. lias a line, that they may be distinct, easily read, and free from danger of error in posting. // Stock account, Dr. -- ---------- To Belt & Cilley's account, Ans. 1. Rule 2 applies to the opening entries. Ans. 2. Opening entries are the statements that show what I possess, and how much I owe when commenc- ing business ; this and the entry preceding it are the ones I can term opening entries. Ans. 3. I debit Stock (my acc't), as required by Rule 2. Ans. If.. I have credited myself with what I possess, and must debit myself (Stock acc't) with the am't I owe. Ans. 5. Rule 1 requires equal debits and credits, so I must credit some account for $200. Ans. 6. Rule 6 says, " When I get into their debt I must credit them ;" therefore, I credit Belt & Cilley for $200. JVbte. In Double Entry an accH is always Dr. to some other acc't, hence the form of this Journal entry. Stock (my acc't) is Dr. To Belt & Cilley because I owe them this am't. * The fij?ures in this column are "Ledger Folios'" (L. F.), and are inserted only as you post a Dr. or Cr. from this book to the Ledger. 29 4000 1000 200 5000 200 ]S^EW YOKK, January 5, 1875. Bo't of H. K. Tliurber & Co. Mdse. per invoice, ----------«---- Our first object being to find tbe Rules tbat will enable us to Journalize this entry, let us begin and try each : Ques. 1. Will Rule 1 apply? Ques. 3. WiU Rule 3 apply? Ques. 2. Will Rule 2 apply ? Q,ues. 4. Will Rule 4 apply ? Ques. 5. Now you have a credit, but according to Rule 1 a debit is required to complete your entry, and as you have already tried four Rules, and only find one that applies, we must seek further. What does Rule 5 govern ? Ques. 6. Do you receive anything in this transaction ? Note. You may credit a person without entering particulars on the Day Book, as in this entry, as you always have their invoice to refer to in case a dispute should arise. In charging a person with goods sold, you must in- variably specify the nutaber of packages, weight, price, and all particulars, for if you are compelled to collect by law you must be able to give items. 11 Bo't of Howell, Barr & Co. 50 bbls. Syrup, 2200 galls. @ W. Ques. 1. This entry being similar to the preceding one, can you follow the same Rules ? Ques. 2. Why not open an acc't called " Syrup " and debit it ? Note. Direct the attention of the pupil to the explanations at the Dr. and Cr. side of the Mdse. acc't in the Ledger, and have him understand that the Dr. side shows the cost and charges ''of Mdse., and the Cr. side the sales. Understanding this assists the learner in the work of Journalizing, and a fre- quent reference to the Ledger explanations will enable him to remember and understand his Rules. 25 Sold W. H. Crump & Co. for Cash, 10 bbls. Syrup, 440 galls. @ 60/^. Let the student try each Rule that he thinks will apply to this entry, and refer to the explanations at the head of Cash and Mdse. acc'ts in the Ledger ; then ask Ques. 1. What do you exchange with Crump & Co. ? Ques. 2. Have you any Rule for receiving and delivering prop- erty? Q;aes. 3. What does it require you to do in this transaction ? 30 NEW YORK, January 5, 1875. Dr. Cr. 2 Mdse. account, Dr. To H. K. Thurber & Co.'s account, Ans. 1. Yes, partly, as it applies to every entry, but more particular Rules are also necessary. Ans. 2. No ; it applies only to opening entries, and as tliey are Journalized, I have no further use for tMs Rule. Ans. 3. No. Ans. If.. Yes ; I get into Thurber & Co.'s debt, and by the Rule must credit them. A71S. 5. It governs the receiving and delivering of property. Ans. 6. Yes ; I receive Mdse., and by the Rule must debit it, so I make Mdse. Dr. To Thurber & Co., and it completes the entry. 11 Mdse. account, Dr. To Howell, Barr & Co.'s account, Ans. 1. Yes ; Rule 5 requires me to debit Mdse., the thing received, and Rule 4 to credit Howell, Barr & Co. when I get into their debt. Ans. 2. It would be almost impossible to keep sepa- rate accounts for syrup, tea, coffee, sugar, and the numerous other articles usually sold by grocers, and I therefore group or class all goods which I buy to sell a^ain under the head of Mdse. 25 Cash account. Dr. To Mdse. account, Ans. 1. I receive Cash in exchange for Mdse. Ans. 2. Yes ; Rule 5. Ans. 3. It requires me to debit Cash, the thing re- ceived, and credit Mdse., the thing delivered. Note. In business, the word " account" after Cash and Mdse. in the above entry would not be used, although always understood. We continue to use it in this set to impress on the mind of the pu- pil the fact that this book is only for the names or titles of accHs. 31 pil 1110 990 264 1110 990 264 NEW YOKK, February 1, 1875. Sold T. G. Stewart & Co., on acc't, @ 30 days, 20 bbls. Syrup, - - 880 galls. @ W- Ques. 1. Do you receive anything ? Ques. 2. Do you deliver anything ? Ques. 3. Do you receive value for the goods ? Ques.. 4. What is required of you when any one gets into your debt? Note. The 5th Eule is often termed " the Common Rule," as it applies to alniost every entry. Almost every entry on books phov^^s something received or delivered, and therefore the application of this Rule is more frequent than any other, except Rule 1, which proves every entry, but Journalizes none. ======: lO — Paid Manhattan Gas Co. Cash in full for gas consumed to date, --------- Ques. 1. Will Rule 5 apply to this transaction ? Ques. 2. Which side of the Cash acc't in the Ledger shows the money paid out ? Ques. 3. Try each Rule, and state which one will furnish the debit that is necessary to complete this entry. Note. All the expenses of conducting a busine^ are losses, and as such are debited to Profit and Loss acc't, which Rule 8 requires to be debited and credited so as to make it a complete exhibit of the gains and losses. In the payment of a gas bill we receive no property that can be debited by Eule 5, and no person gets into debt that can be debited by Rule 3. It is a necessary loss sustained in business, and as all our gains are credited to Profit and Loss, we must be particular to debit the same account with all expenses and losses. Then at settlement time we find on one side of the Profit and Loss all our losses, and on the other, aU our gains, and it is easy to determine what has been made in the concern. The accounts to be debited and credited must be determined by Rule. It will not do to guess at a debit or a credit, as your Day Book and Journal must harmonize. If your Day Book states that Cash has been paid out, and Cash is debited in the Journal, you violate Rule 5, and make your Journal show that it was received. 22 Sold Dunlevy & Bro. 20 bbls. Syrup, 880 galls. @ 61^. Received in payment of the same their note at 60 days. Ques. 1. Try Rule 5, and see if it will apply. 32 NEW YOKK, February 1, 1875. Dr. Or, S T. G. Stewart & Co 's account, Dr. To Mdse. account, Ans. 1. No. Ans. 2. Yes ; I deliver Mdse., and by Rule 5 I credit it. Ana. 3. No ; but Stewart & Co. get into my debt. Ans. 4. I am required by Rule 3 to debit him. Note. The explanations at the head of Mdse. acc't in the Ledger show that all sales must go to the Cr. side of that account, and liule 5 requires us to credit Mdse. for all goods delivered. 10 Profit and Loss account, Dr. To Casli account, - . - Ans. 1. Yes ; it gives me tbe Cr., as I delivered Casb. Ans. 2. The Cr. side shows all money paid out. Ans. 3. The first Rule is used for every entry ; the second, only for opening entries when I begin business ; the third, only when some one gets into my debt ; the fourth, when I get into some person's debt, which is not the case here, as I pay the Gas Co. when they pre- sent the bill. The fifth Rule gives me the credit ; the sixth and seventh Rules refer to real estate, bank stock, &c. ; the eighth Rule will furnish the debit, for I have paid out money without any person getting into my debt, or receiving anything of value in return for it ; therefore, I debit Profit and Loss, and by so doing make my debits and credits even. 22 Bills Receivable account. Dr. --- To Mdse. account, Ans. 1. The fifth Rule will apply, as I receive an ob- ligation on paper, and deliver Mdse. 1. The teacher should explain that the accounts in the Ledger show just what the Rules for Journalizing make them show. Thus, Rule 5 requires a debit when Cash is received; consequent- ly, the Dr. side of Cash shows all money received. The same Rule requires a credit when Cash is delivered, and by following this Rule we make the Cr. side of Cash show all money paid out. C 33 528 11 536 25 528 11 25 536 80 NEW YOKK, February 27, 1875. Received of Clias. E. Hill & Co. Casli in payment of their note due this day, Ques. 1. What Eule is the most general in its application ? ques.^. Why? Ques. 3. Why not credit the parties who paid the money ? Note 1. When a note is received, you keep an account of it juet as you do of Cash or Mdse. ; that is, you debit it when received (see first entry Jour. 1), and credit it when delivered. The account on the Ledger then shows how many dollars in notes have been received, and how many dollars in notes have been paid out, and by the difference between the two sides of the acc't the amount you still have on hand. See Ques. 9, p. 26. March 1 Gave Howell, Barr & Go., in settlement of the am't I owe them, my note at 30 days for Ques. 1. Will the Common Rule (5) apply ? Ques. 2. What Rule will give the debit ? Ques. 3. Why apply Rule 3 ? Ques. 4. When you pay this note, what will you debit ? Note S. When you give out notes that are signed by yourself, you keep an account of them under the head of Bills Payable, as they are your promises, in writing, to pay. See Ques. 10, p. 26. Bills Payable is credited when de- livered, and debited when received. As you must first sign and. deliver a Bill Payable before you can pay and lift it, the acc't must never be made to show that you paid more notes than you gave out. When you give a person your note, debit him the same as if you had given him the money, and credit Bills Payable— the thing delivered. Unless the entry distinctly states that it is "my" note, no debit or credit to the Bills Payable acc't is proper. ^ 10 — Sold Wm. McKown & Co. 10 bbls. Flour, @ $7.50 $75.00 5 h'f chests Young Hyson Tea, - 330 lbs. @ 1.00 330.00 10 bags Rio Coffee, 1600 fi @ 33 368.00 Received in payment Cash, - - - 273.00 Their note at 30 days for 500.00 Ques. 1. What Rule must be applied ? Ques. 2. What do you receive ? Ques. 3. What do you deliver ? 34 NEW YORK, February 27, 1875. Dr, Or. 4 Casli account, Dr. -- .--.. To Bills Receivable account, ---.-..-- Ans. 1. Rule 5. Ans. 2. Because in nearly every transaction there is something received and delivered. Ans. 3. Because I must credit Bills Receivable — the thing delivered. ^ March 1 : Howell, Barr & Co.'s account, Dr. To Bills Payable account, Ans. 1. Yes ; it gives me the credit, for I deliver my note, which is a Bill Payable. Ans. 2. Rule 3. Ans. 3. I cease to owe Howell, Barr & Co. anything on book account. Ans. 4. Bills Payable — the thing received. =^=== 10 — Sundry accounts, Dr. To Mdse. account, Cash account, Bills Receivable account, Ans. 1. Rule 5. Ans. 2. I receive Cash and a Bill Receivable, both of which I must debit. Ans. 3. I deliver Mdse., and by Rule 5 that account must have credit. Kote. In this transaction we deliver one thing, and in ])ayment receive two things, which must be debited. To state this entry on the Journal, we must use some term that will show that Cash and Bills Receivable are both debtor to Mdse. The term in gene- ral use for this purpose is " Sundries." If we want to refer to several persons, several items, or several things, may we not write " Sundry persons," " Sundry items," and "Sundry things?" "Sundry" means plurality, or more than one, and is used in book-keeping in the Journal and Ledger to indicate when more than one acc't is debtor to another; thus, " Sundry Accounts Dr. To Mdse.," means more than one acc't is debtor; or, "Mdse. Di". To Sundry Accounts," means more than one credit. An experienced book-keeper would abbreviate, and only write "Sunds. To Mdse.," or "Mdse. To Sunds." 35 1000 990 273 500 1000 990 773 NEW YORK, March 17, 1875. Sold J. W. Craig 10 bbls. Flour, @$7.50 Received in payment his check for $75 on City National Bank, QuGS. 1. What do you receive ? Q,ues, 2. What is the check the equivalent of ? 0,1168, 3. What account will you credit t = 24 Sold Caskey & Short, Pittsburgh, Pa., 5 bags Coffee, 800 lbs. @ 23^. Received in payment their acceptance payable in 30 days from this date. Quea. 1, What is received and delivered ? Ques. 2. What accounts will you debit and credit ? Note. Rule 9, p. 26, determines what is classed as Bills Receivable, viz., all obligations on paper which 1 hold against others. See ITorm VII., p. 135. Due Robert Bailey, clerk. For 2 mos. salary, @ $25.00 Ques. 1. As you are in debt to Bailey for this amount, what must be done ? Ques. 2. What account can you debit ? Note. You have received nothing that Rule 5 requires you to debit, and it does not appear that any person gets into your debt so that Rule 3 will apply. It is one of the necessary expenses of a business. Paid Robert Bailey Cash in full to date, .----..--- Note. This entry is introduced to show that it is unnecessary labor to credit a person with the amount due him, and immediately charge or debit him with the same amount. In this case we open an acc't with Bailey and credit it with $50, and in the next entry, on the same day, w^e have debited or charged him with $50, and by so doing closed his account. This extra labor could have been avoided by making the following entry : Paid Robert Bailey, clerk. Cash in full for 2 mos. salary to date. We did not open an account with J. W. Craig and debit it with the bill sold him on March 17, because, to state it positively, he did not get into our debt, having given his check for ^75 immediately. 36 NEW YORK, March 17, 1875. Ih\ Or. 5 Cash account. Dr. To Mdse. account, Ans. 1. I receive liis check. Ans. 2. Checks on banks are always considered equiv- alent to Cash, and I therefore debit Cash as the thing received. A7i%. 3. I credit Mdse. — the thing delivered. Note. Nothing but the Ledger title of accounts are written in the Journal, with the amount that is to go to the respective acc'ts named. Thus, we write "Cash account, Dr.," as aoove, it being the thing received. We could not write, '' Check account, Dr.," as there is no account of that name in the Ledger, but we can class all checks, &c., that are current as money as Cash. See Quee. 12, p. 26. ===== 24 Bills Receivable account. Dr. To Mdse. account, - - - - Ans. 1. I receive an obligation on paper against an- other, and deliver Mdse. Ans. 2. I debit Bills Receivable for the obligation on paper received, and credit Mdse. — the thing delivered. 31 Profit and Loss account. Dr. To Robert Bailey's account. Ans. 1. I must credit him, as directed by Rule 4. Ans. 2. I must debit Profit and Loss, as I have had the benefit of his services, which, although not now of tangible value, assisted me in making a profit. Note. The expenses of conducting a business are always to be treated as losses, and charged to Profit and Loss. Advertising, gas, and fuel bills, rent, clerk hire, &c., are necessary expenses and must be charged ae stated to make the Dr. side of the Profit and Loss acc't show all my expenses and losses. Robert Bailey's account. Dr. To Cash account, - - - - 37 75 184 50 50 75 184 50 50 SET II.— DOUBLE ENTRY BOOK-KEEPINa. DIRECTIONS FOR OPENING, POSTINQ, AND CLOSING THE LEDGER. 1. By counting the lines reserved on the printed book for each acc't, the amount of space required for each acc't in the manuscript, or blank book, can be easily and safely determined. To avoid crowding, and to make an allowance for mistakes in posting, allow two or three extra lines to each account. Page as in text-book. 2. Write the heading of each account in a neat hand, shading the downward strokes of each letter to give the title prominence. Write the abbreviations Dr. and Cr. at the top of the page. 3. The explanations in parentheses at the head of each account in the text-book show what the Dr. and Cr. side of each account represents, and to what class the account belongs. These are intended to assist the pupil in the work of closing the Ledger, but he can use his pleasure as to copying them into his blank book when writing his Ledger titles. 4. Do not let the titles of accounts extend across the date columns, as yon want the space to insert the year. 5. The triple line down the centre of the Ledger pages divides them into two parts — Dr. and Cr. The first left-hand column on the Dr. side is for the month ; the next, for the day of the month ; next, for explana- tion ; next, for Journal page ; next two, for dollars and cents. The Cr. side is divided in precisely the same way. POSTING FROM THE JOURNAL TO THE LEDGER. 6. To illustrate this part of the work, we make use of the first entry on the Journal, under date of January 1, 1875: Sundry acc'ts. Dr. To Stock acc't, Cash acc't, Dr. for Bills Receivable acc't, Dr. for - Dr, 4000 1000 Cr, 5000 v. First, Stock account is to be credited for |5000. Turn to that account on the Ledger and- insert this amount in the dollar column, on 38 POSTING FROM THE JOURNAL TO THE LEDGER. the CV. side of the account; insert the date (January 1) in the dato column, placing the year above the month, as in the text-book. In- sert in the explanation column what the account is credited " By," for in Double Entry all accounts are debtor " To " or credited " By " some other account. See Rule 1, p. 25. In this entry Sundry acc'ts are Dr. to Stock acc't, and as an account is always credited " By " the account or accounts that are debtor to it, we explain this credit of $5000 to the Stock account by writing in the explanation column " By Sundries," i. e., By Several accounts. Next, insert the page of the Journal from which the entry was taken, in the folio column, to the left of the dollar column. To show that the credit of $5000 to Stock has been posted, insert in the Journal, on the same line with the item posted, the page of the Ledger to which it was taken. This completes the posting of the credit. Next is Cash account. Dr. $4000. Turn to the Dr. or left-hand side of the Cash account in the Ledger and insert the amount in the money column, and the date. It being a debit, Cash is Dr. to some other account: an account is always debtor ^^To" the accH {or ace'' is) that is credited. The Journal entry shows that Stock is credited, and you explain this debit of $4000 in the Cash acc't by writing in the explana- tion column, " To Stock." Next, insert the Journal page in the remain- ing column, and, to complete the posting, insert the page of the Cash acc't on the same line with the item posted. This leaves another debit to post. Turn to the Bills Receivable acc't on the Ledger and insert the amount ($1000) in the money column on the Dr. side. Then the date and explanation. Bills Receivable is Dr. and Stock was Cr. ; so you ex- plain the debit as you did in the Cash acc't, by writing in the explana- tion column, "To Stock." Insert the Journal page in the remaining column, and the Ledger page in the Journal. 8. Inserting the Ledger pages of the accounts you post to, serves a double purpose : it is a ready reference to the accounts when checking, and also shows how far you have progressed with the posting ; for as far as Journal entries have the Ledger pages attached, so far are they posted. 39 SET II.— DOUBLE ENTRY BOOK-KEEPING. CHECKING. 9. After posting the month of January, compare and check the posting from the Journal to the Ledger, to see that each amount has been transferred to the right account, is taken to the proper side of the account, and is the right amount. As each posting is found cor- rect, check it in pencil — thus, /^ — on the right of the folio column in the Journal, and in the Ledger make a dot (.) in pencil on the double red line to the left of the dollar column, and on the same line with the item that has been examined and found correct. The check marks show what work has been examined, and how far you have progressed with the examination. The teacher should impress the pupil with the importance of this work, and never allow it to be neglected or slighted. 10. After posting and checking your work up to March 31, the cor- rectness of it must be further tested by taking off a Proof Sheet or Trial Balance. See form, p. 49. The object of this is to see that the aggre- gate debits and credits on the Ledger are equal, as they will be if your work is correct, for every debit has its corresponding credit. It must be known whether the debits and credits are equal before attempting to close the Ledger, because this cannot be dojie unless they are equal. The manner of taking off this Proof Sheet is very simple. First add the Dr. and Cr. sides of all open accounts on the Ledger, and insert the foot- ings of each, in pencil, to the left of the money columns, as shown by the small figures in this book. Next, transfer the footing of the Dr. and Or. side of each open acc't to the corresponding columns of the sheet, and write the title of the account opposite, as shown in the form given for a guide. After all the accounts are gathered on the Proof Sheet, the Dr. and Cr. columns are footed, and if the footings are not the same, it is evident that an error exists somewhere, and you can go no further until it is found and rectified. 11. The student must commit to memory the "Rules for Closing the Ledger," p. 41, and also the exercises under each account ; after which, he is prepared for the work of closing. 40 SET II.— DOUBLE ENTRY BOOK-KEEPING. CLOSING THE LEDGER. 12. To determine the results of your business, gather all acc'ts into the Profit and Loss and Balance acc'ts. The former receives the gains and losses, and the latter your effects and liabilities. The Profit and Loss acc't then shows how much you have gained or lost, and this gain or loss, when taken to your acc't (Stock), will show how much is due you for your capital and added profit. After the gain or loss is taken to Stock acc't. Stock is closed into Balance acc't. Balance acc't will show on one side your property and debts due you (effects), and on the other, what your concern owes to others, and to yourself, viz., the am't taken from Stock acc't. The effects will suffice to pay what is due to others, and the am't due you as per Stock acc't ; that is, one will balance the other. RULES FOR CLOSING THE LEDGER. Note. The learner must commit these Rules to memory. Hule 1. Personal accounts all close To or By Balance. RuU 2. Property accounts close in two ways : 1st. If all the property is sold or disposed of, then close To or By Pkofit and Loss. 2d. If all or part of the 'property remains on hand, credit the acc't first By Balance for the amount on hand, and if there still he a difference between the two sides of the acc't, close it To or By Profit and Loss. Bute 3. Accounts exhibiting gain or loss close To or By Profit and Loss. Mule 4. When Profit and Loss account has received all its transfers, it closes To or By Stock. Rule 5. Bills Payable acc't always closes To Balance for the amount you owe on your notes. Rule G. To close an account, write the name of the account it closes into on the lesser side, and carry the amount to the opposite side of the account into which it closes, and write the name of the account that it was taken from. Refer to the transfer from Cash to Balance acc't. Rule 7. In re-opening an account, the Balance is brought down on the side opposite the closing entry. 41 SET II.— DOUBLE ENTRY BOOK-KEEPING. 13. The pupil must bear in mind that the closing of the Ledger is only for the purpose of determining how much he has gained or lost, and recording the same on his books. It does not alter the accounts that close into Balance, for they are all re-opened by bringing the balance down, which makes each account show the same after closing that it did before. See Belt & Cilley's account as an illustration. 14. Rule 2 is difficult for beginners, and we illustrate its application : Dr. MDSE. ACCOUNT. Cr. 10 bbls. Flour, - - To Profit & Loss, /. To Bal. bro't down. X 70 X X X 8 78 — X X 14 8 bbls. Flour, By Balance, 78. 70. Gain, 8. X 64 X U 78 If you buy 10 bbls. Flour at $7, Mdse. acc't will be debited with $70, and if you sell 8 bbls. Flour at $8, Mdse. will be credited with $64. You have 2 bbls. Flour on hand that cost $14, and Rule 2 requires you, in closing your Ledger, ta Jirst credit the account "By Balance" for the value remainino: on hand. Then, followinof the Rule further — " If there still be a difference between the two sides, close it To or By Profit and Loss " — we close the acc't by an entry on the Dr. side, " To Profit and Loss." The account shows that the Mdse. cost $70, and that the Mdse. sold and on hand amounts to $78, or $8 more than it cost. The gain is taken to Profit and Loss account, and the 2 bbls. Flour on hand to the Balance acc't, where you are making up a list of your effects. Refer to the Mdse. acc't in the Ledger, and you have another illustration of the application of this Rule. The Mdse. is all disposed of, and it closes " To Profit and Loss." In the Cash acc't you have another illustration. It is credited "By Balance" for the amount on hand, and that entry closes it. 15. Rule 4 requires you to close Profit and Loss into Stock after it has received all its transfers, but this need not be done until all others, except Stock and Balance, are closed. 42 Dr, (What I owe) STOCK (Representing myself) ACCOUNT (What I pissess). Cr 1875. Jan. Mar. To Belt & Cilley, - - - " Bal* (net cap.), fol. Ii999 5199 ! 1875. Jan. Mar. Apr. By Sundries, - - • " Profit and Loss, 5199.55 200. fol, By Bal. bro't down, 5000 199 5199 4999 55 1. What do yon post to Dr. side of St'k acc't ? 2. What to the Cr. side ? 3. When do you close it ? 4. How does it then close ? 5. What does/oZ. or/, indicate when placed before a figure in the folio column ? 6. Are the entries marked /. or fol passed through the Journal ? 1. What I owe. 2. What I possess. 3. After Profit and Loss closes into it. 4. To or By Balance. 5. A ti-ansfer from one account to another on the f^ce of the Ledger. 6. No ; a Dr. and Cr. entry is made in the proper accounts in the Ledger, Note. In closing the Ledger, the Stock acc't is the last account closed, except the Balance. All accounts showing gain or loss must be closed into the Profit and Loss acc't, which is kept open to permit this. The diS"erence between the two sides of the account, which is either gain or loss, is yours, and must be carried to your acc't (Stock). After the gain or loss is entered, compare the difierence between the two sides of "Stock" with the dift'crence between the two sides of the "Balance" acc't, and if both accounts show the same result, your work is correct, and you then close Stock acc't into Balance. This makes both sides of your Balance acc't even, and completes the closing of your Ledger. Notice that the balance is brought down after the acc't was closed. By the closing, the result of your business up to and including March 31 was recorded, and on the next day, April 1, the net amount you then possess is brought down to continue the business. The entry, "Bal. bro't down," is treated as if it was such an entry as was made when you began business, Jan. 1. (All money received) CASH (Property) ACCOUNT (All money paid out.) 1875. Jan. 1 2.5 Feb. 27 Mar. 10 17 Apr. J To Stock, - - - . Mdse. - - - . Bills Eec. - - . Mdse. - - - . do. - - - . 6612. 61.25 - . 6550.75 To Bal. bro't down. 1875. 1 4000 Feb. 10 2 264 Mar. 31 4 1000 '• 4 273 5 75 5612 - 5550 75 By Profit and Loss, - - - " Robt. Bailey, - - - - " Balance., - - - fol. 61.25 3 11 5 50 7 5550 5612 1. What does Dr. side of Cash acc't show ? 2. What does the Cr. side show ? 3. What does the difference represent ? 4. How does it close ? 5. How will it stand if all your money is paid out ? 6. Can it ever close " To Balance ? " 1. All Cash received. 2. All Cash paid out. 3. The Cash on hand. 4. Always "By Balance." Rule 2, p. 41. 5. Even, or self-closed. 6. No ; I cannot pay out more money than I receive. * See Ques. 1 and 2, Park Bro. & Co. acc't, p. 15. 43 SET II.— DOUBLE ENTRY LEDGER. Note on Closing Cash Account.— As we cannot close Stock acc't first, it must be left open until you get all others closed, except Balance. Cash acc't being next in order on the Ledger, you proceed to close it. Add the Dr. and Cr. sides, Inserting the amount in pencil figures to the left of the folio columns, as shown by the small figures in the preceding account. Deduct the lesser from the greater amount, and the remainder is the balance of Cash on hand. As you are making up a list of your eff'ects and liabilities in the Balance acc't, and this balance of cash on hand— f 5550. 75— is part of your effects, you therefore make an entry on the Cr. side of your Cash acc't to take it there. Enter in red ink, and to show where it is taken to, explain it thus: "Mar. | 31 j By Balance, - - fol. | 7 | 5550 | 75." This gives your reason for making a credit in the Cash acc't when no money is paid out, and the explanation given is equivalent to paying: On Mar. 31 1 took to Balance acc't on fol. 7 $5550.75 to assist in making up a complete list of my effects and liabilities. The entry is in red ink, because it is only bori'owed, and is entered thus conspicuously that its return cannot easily be overlooked and your books thrown out of balance. Use red ink for making balance entries and ruling purposes only. Draw a footing line first under the longest column, and then, without lifting or changing your ruler, draw another across the dollar and cent columns opposite. Care must be taken not to get one footing line an inch or so higher up the page than the other. Insert the footings belatM the footing lines, and one line below the footings, draw the closing lines, which consist of double lines, across the dollar and cent columns, and a short line in the left of each explanation column. The amount of cash this account shows you to have must be taken to the Dr. side of the Balance acc't, as that is the side on which the list of effects is made up. In the Balance acc't you must give the name of the account from which this effect was taken; thus, "Mar. I 31 I To Cash, - - fol. | 1." Now turn to the Cash acc't, and bring down on the Dr. side the amount— $5550.75 — which you borrowed to help make up the Balance acc't. This completes the closing of Cash, and is the first step taken in closing the Ledger. Notice that the standing or showing of it has not been changed. The Dr. side, which was the largest before closing, is the largest after closing. (Purchases) MDSE. (Property) ACCOUNT (Sales). 1875. Jan. Mar. 5 :To H. K. Thnrber & Co. - " Howell, Barr & Co. 2100. " Profit and Loss, fol, ': 1875. 1 2 1110 Jan. 25 2 990 Feb. 1 22 6 260 80 Mar. It 10 17 24 23G0 By Cash, " T. G. Stewart & Co. - " Bills Receivable, - - " Sundries, " Cash, " Bills Receivable, - - 2360.80 2100. 260.80 2 264 3 528 3 536 4 773 5 75 5 184 2360 80 1. What does the Dr. side of the Mdse. acc't show? 2. What does the Cr. side show ? 3. To what class of accounts does it belong ? 4 flow does it close if all goods are sold, as is now the case ? 1. The cost and charges of all goods bought to sell again. 2. All sales. 3. Property acc't. 4. As directed by Rule 2, p. 41 — To or By Profit and Loss. 44 SET II.— DOUBLE ENTRY LEDGER. Note on Closing Mdse. Account. — Rules 2 and 3 require you to close all accounts that exhibit gain or loss into the Profit and Loss acc't. See p. 41. Consider if this account shows either. If the Dr. side shows that you bought $2100 worth of goods, and the Cr. side shows that you Bold the same for $23G0.80, the increase of $260.80 must be gain. If you are making up a list of your losses and gains in the Profit and Loss acc't, the list will not be complete without this gain is added, and therefore the Rules on p. 41 require it to be closed into that account. The Mdse. acc't has been kept to show what has been made on your sales, and, as stated above, it has served your purpose. To take the gain to the Profit and Loss acc't, the closing entry must be made on the lesser side of the acc't, which, in this case, is the Dr., and to explain, write, " Mar. I 31 I To Profit and Loss, - - fol. i 6 | 200 | 80." Draw footing and closing lines. Turn to the Profit and Loss acc't, and stop to think on which side of it the gain must be entered. As all gains are taken to the Cr. side, enter the amount— $260.80, and explain it thus: "Mar. I 31 I By Mdse. - - fol. | 2," to show what it is and where obtained. Tou have no Balance to bring down, as in the Cash accH. As you go on with the business, use the Mdse. acc't, without making a new heading, and keep it for another period to show your profits. (Notes received) BILLrS (Property) RECEIVABLiE (Notes given up). Apr. ToBal. bro't down. 1875. 1 inoo iFeb. 27 a 536 80 Mar. 81 4 500 5 184 80 80 2220 1220 By Cash, - - '' Balance^ - fol. 1000 1220 2220 80 1. What does the Dr. side of Bills Rec. acc't Bhow? 2. '^hat does the Cr. side show ? 3. How will it stand when all are given up ? 4. What class of accounts does it belong to, and how does it close ? 1. Notes (or other obligations on paper) of others received. 2. Notes that have been paid and given up. 3. Even, or self-balanced. 4. It is a property acc't, and closes " By Bal- ance," if I have any notes on hand unpaid. Mte. This account is closed as directed by the second part of Rule 2, p. 41. The difference between the Dr. and Cr. sides shows the notes remaining on hand unpaid, and, as directed by the Rule, you credit the account "By Balance, fol. 7," for the difference, and draw closing and footing lines, as usual ; after which, the amount is carried to the Dr. side of Balance acc't, and there explained, " Mar. | 31 | To Bills Rec. - - fol. | 3." Then return to Bills Rec. acc't, and bring the Balance down on the side opposite your red ink entry. Abbreviate it, as shown above. This account is always debited and credited with the actual amount named in the ob- ligation, and any gain or loss in receiving or delivering it is recorded at the time in some other account. The Cr. side of this account must not be made to show that you collected more notes than you held. Where one side of an account is longer than another, the blank space on the short side is filled with a short red line, opposite the footing line, as shown above. 45 J)r, (My notes taken up) BILLS (Special) PAYABLE (My notes given out> Ci\ 1875. Mar. To Balance, • fd. 1875. Mar. By Howell, Barr & Co. - Apr. 1 By Bal. bro't down, 990 1. What does the Cr. side of Bills Payable acc't show ? 2. What does the Dr. side show ? 3. How will it stand when all notes are paid ? 4. How will it close if you still owe some- thing on your notes ? 5. Can it ever close " By Balance ? " 1. All obligations on paper given out. 2. AU that I have paid and taken up. 3. Even, or self-balanced. 4. To Balance, for tho difference between the Dr. and Cr. sides. 5. No ; for I would not pay more notes than I gave. Note on Closing.— This account is closed according to Rule 5, p. 41, and as it shows the exact face value of all notes or other obligations on paper held by others against you, we ascertain from it that you owe $990 on a note. Close it " To Balance," as directed by Rule, and carry the amount to the Cr. side of Balance acc't, where you are making up a list of what you owe. Turn back to Bills Payable, and bring down the balance to the Cr. side. Notice that the "Bal. bro't down" is always on the side opposite your closing or red ink entry, and remember that the entry you made to close the account is only a temporary one, to assist you in making up your Balance acc't. You charged Bills Payable with $990 for that purpose, and not because you paid the note. Therefore, you re-open the account, and make it show by the "Bal. bro't down " that you still owe a note for |990. You must not think closing an account is useless work because the account is unchanged when re-opened by bringing down the balance. Clos- ing the Ledger at regular intervals is necessary to secure accuracy, and to learn your gains oi losses, and closing the accounts is recording plainly for future reference that they have been verified up to date of closing. As you have nothing to add, footing lines are not needed, so you draw the closing lines on the next line below the figures. (What they owe me) BELT (Personal) & CILLEY (Wliat 1 owe them). 1875. Mar. SI To Balance, fol. 7 200 Jan. 1 By Stock, 1875. Apr. 1 By Bal. bro't down, - - 200 1. What do the Dr. and Cr. sides of Belt & 1. The Dr. side shows what they owe me, Cilley's acc't show ? and the Cr. side what I owe them. 2. What class of accounts does it belong to ? 2. Personal. 3. How do all personal accounts close ? 3. Either To or By Balance. Rule 1, p. 41. JVote on Closing..— Yon owe Belt & Cilley $200, which, according to Rule 1, must be closed into Balance. As the Dr. side is the smallest, you debit the account with $200, giving, as usual, the date of closing and the explanation, "To Balance, fol. 7"— all in red. Turn to the Balance acc't and enter the am't and the explanation on the Cr. side. When a Balance entry in red is made on the Dr. side of any acc't, it is always taken to the opposite or Cr. side of Bal. acc't. Turn to Belt & Cilley's acc't and re-open it so as to show that the red ink entry did not pay the am't you owe them. This is done by bringing down the balance on the Cr. side of the acc't in the regular way, as shown above. Never write " Bal. bro't down " in red ink. 46 Dr, (My acc'tagst. them) H. K. (Personal) THURBER & CO. (Their acc't agst. me) Cr. 1875. Mar. To Balance. fd. 1110 1875. Jan. Apr. By Mdse. 1 By Bal. bro't down, 1110 1110 1. What do the Dr. and Cr. sides of H. K. Thurber & Co.'s account represent, and what class of accounts docs it belong to ? 2. How do all personal acc'ts close ? 3. What is the reason for the Rule ? 1. The Dr. side shows my account ajrainst them, and the Cr, side their account against me, and it is classed as a personal acc't. 2. To or By Balance, as in Rule 1, p. 41. 3. Personal acc'ts either show what others owe me or what I owe others, and in either case must be taken to the Balance acc't. Note. Accounts of Belt & Cilley, Thurber & Co., Howell, Barr & Co., Stewart & Co., and Bailey all belong to the class called Personal acc'ts. Note on Closing.— Where there is nothing to add in an acc't, draw regular closing lines one line below the figures, i. e., a double red line across the money columns, and a short line, called a "blank," in the left corner of each explanation column, to fill the blank space there. Draw the lines across the dollar and cent columns without lifting the pen. (What I pay them) HOWELL, (Persona!) BARR & CO. (What I buy of them) 1875. Mar. 1 To Bills Payable, - - 4 1875. Jan. 11 By Mdse. Note. You settled with this firm, and as the sides of their acc't balanced, it required only the usual niling to close it. Closing an acc't when settled, records the adjustment to that date in a way that obviates the necessity of referring to it when making a future settlement, thus saving much labor in examining items that have no bearing on the matter. (^Yhat 1 sell them) T. G. (Personal) STEWART & CO. (What they pay me) 1875. Feb. 1 To Mdse. 3 Apr. 1 To Bal. bro't down, 1875. I Mar. 31 To Balance, fd. 7 528\ 1. According to Rule 1, p. 41, To or By Bal. 2. By Balance, as it takes a Cr. to close it. 3. It is a Cr. here, and must be a Dr. there. f . How do all personal acc'ts close ? 2, How will Stewart & Co.'s close if the Dr. side is largest ? 3. To which side of Balance acc't is the am't taken ? Note on Closing.— The closing entry is dated Mar. 31, but the Balance, which is bro't do\^Ti immediately, is always dated the next day. Notice above that the amount bro't down is dated April 1. It is customary to date the Balances bro't down one day ahead, as it saves the trouble of writing " April " after the " Bal. bro't down." We have closed all the Personal accounts, in order that the student may not be confused by exceptions to a Rule until he fully understands the Rule itself. In Sets III. and IV. we show that this need not be done. 47 Dl\ (When I gel out of his debt) ROBT. (Persona!) BAILEY. (When I get into his debt) Cr, 1875. Mar. To Cash, 50 1875. Mar. 31 By Profit and Loss, 50 Note. Both Dr. and Cr. sides are equal, and only require closing lines to mark the settle ment. Kefer to Howell, Barr & Co. acc't, p. 47. (All expenses and PROFIT AJ^jy LOSS. (Ml gains) 1875. Feb. 10 Mar. 31 To Cash, - - - - K. Bailey, - - 61 25 Stock (net gain). fol. 199 260 1875, Mar. By Mdse. fol. Whole gain, 260.80 Whole loss, 61.25 Net gain, 139.55 80 1. What does the Dr. side of Profit and Loss show? 2. What does the Cr. side show f 3. What does the difierence represent ? 4. Which of the closing Rules on p. 41 ap- plies ? 5. Why close this account into Stock instead of Balance acc't ? 6. When do you close this account? 7. Why delay the closing until the last ? 1. All my expenses and losses. 2. All my gains. 3. Either my net gain or my net loss. 4. KHle4. 5. The profits of the business belong to me, and must go to my credit in Stock acc't. 6. Not until all other accounts, except Stock and Balance, are closed. 7. I must keep it open to receive any gains or losses from other accounts on my Ledger. Note on Closing .—VTO&t and Loss acc't is the record of your gains and losses from the time of one Ledger closing to another. In place of debiting and crediting all losses and gains to your own account (Stock), where they would be entangled with other items, you keep them in this special account, where at closing time you sum them up, and, as shown above, ascertain your net gain, which is taken to the Stock acc't, and the footing and closing lines are then drawn in this account. You have nothing to bring down, as the gain has been carried to your own acc't (Stock) and absorbed by it. Balance entries are only borrowed, and when the acc't from which ai\ entry is borrowed is re-opened, the amount must be returned to make it show the same as it did before closing; but transfers to Profit and Loss are permanent— there is no return, as the gain finally goes to your acc't as an increase of capital. You continue this acc't under the same heading by posting any debits or credits you may have, immediately under tho closing lines. The same heading will answer as long as there is space under it. Various explanations have been repeated in modified form throughout this set. This has been done because an explanation which is readily understood by one learner may be difficult of comprehension by another. Our experience is that the pupil beginning the study of book- keeping requires, at the outset at least, all the instruction we have given. The experienced teacher will quickly appreciate the pains we have taken to simplify the work. 48 {Elffectsy Dr. (AH that I am worth) BAL.AIS'CE ACCOUNT. (Liabilities) 7 (What my concern owes) Cv, 1875. Mar. To Cash, fol '' Bills Receivable, - " " T. G. Stewart & Co. " 7299.55 2300. Net cap., 4999.55 1 3 5 5.550 1220 528 ,5 80 1875. Mar. 31 11 7299 55 By Bills Payable, - - fol, •' Belt&Cilley, - - " " H.K.Thurber«feCo." 230O. " Stock (net cap.), - " 990 200 1110 4999 55 7299 55 1. What is transferred to the Dr. side of Balance ? 2. What to the Cr. side ? 3. What does the difference between Dr. and Cr. sides show ? 4. How and when is it closed? 1. All my property and debts due me. 2. All debts that I owe. 3. My net capital, unless I owe more than I can pay. 4. The transfer from Stock makes the sides equal, and it is the last account closed. Note on Closing.— This account was opened on Mar. 31 for the purpose of concentrating and recording all your effects and liabilities at that date. The Stock acc't will show the net amount you are worth, but gives no details. The Balance acc't does. Examine the acc't and see if it does not show how much Cash you have, the amount due on Bills Receivable, the amount due you on book acc't, and by whom ; and on the Cr. side, what you owe on notes, on book acc'ts, and to whom you owe it. Both Stock and Balance showing the same result (that is, the differ- ence between the two sides of each of the accounts showing the net amount you are worth, or your net capital, as it is usually termed), they must show the same amount, if your work is cor- rect. Before the closing entry is made in ink, see that the balance of the Stock acc't will ex- actly close the one above. PROOF SHEET, March 31, 1875. Dr. Cr. Stock, ----- Cash, Mdse. ----- Bills Receivable, - Bills Payable. - - Belt & Cilley, - - H. K. Thurber & Co. T. G. Stewart & Co. Profit and Loss, - - 200 5000 i 5612 61 25 2100 2,360 80 2220 80 1000 990 200 1110 528 61 25 10722 05 10722 05 Note. If the debits and credits are not equal, your books will not close— a fact that will re- main undiscovered until you are about to close the last account. T© determine whether your debits and credits are equal before attempting to close your books, a list like the above must be made up on a loose sheet of bill paper, which will embrace all the accounts that remain open on your Ledger. Here we only take off a proof sheet previous to closing the Ledger, but in business, to get timely notice of error, one should be taken off each month. If the debits and credits do not agree, it is evident you have made an error somewhere, which must be found and rectified at once. See ^ 1, p. 74. All closing entries bear the date of the proof sheet, viz., March 31. See ^ 10, p. 40. D 49 SET II.— DOUBLE ENTRY BOOK-KEEPING. QUESTIONS FOR REVIEW. The pupil should be required to write the answers to the following questions : Ques. 1. What is the diflference between Single and Double Entry Book-keeping ? 2. What books are used in Double Entry ? 3. What is the Day Book used for ? Jf., What is the Journal used for ? 5. What is the Ledger used for? 6. Repeat the Rules for Journalizing ? 7. What is the diflference between a Bill Receivable and a Bill Payable ? 8. Where is a transaction generally first recorded ? 9. Then what book is it taken to ? 10. What is the last book into which it is condensed ? 11. After posting the Journal to the Ledger, what do you do next ? 12. After checking, what ? 13. Repeat the Rules for closing the Ledger ? llf. When do you use red ink in the Ledger ? 15. What does/ 5 " do. Robes, 120 " 93 5 " do. Pinks, 120 " 9J Received payment, Dextee, Abbott & Co., Per Nath. Doty. 30 Bo't of David N. Lord & Co. Mdse. pr. bill, April 1 do. do. do. Passavant & Co. do. do. do. do. do. do. T. P. Remington, Jr. do. do. do. do. do. do. do. 30 ' Cost of purcliases for April, ' See 1 7, p. 77, ^ See t C, p. 79. ^ Compare this footing with footing of Dr. side cf Mdse. acc't in the Ledger. See *f 1, p. 79. 83 3604 93 10 80 1140 11 40 33 60 46 05 78 50 10. 37'73 38 r> May 5, 1875. Mat^CUKSTER, May 1 1875. G. A. Gaskfjj., Bo't of Amoskeag Manf 'gCo. D.B. 4 50 pes. Amoskeag Bl. Sheeting, 10/4, 2000 yds. 25 " do. do. 6/4,1000 " @ 331^ 18 650 180 50 " do. A Brown Drilling, 1900 " Hi 218 50 20 " do. ACA Ticking, 36 in. 800 ** 30 240 20 " do. Denims, 480 " 20 96 20 " do. do. B, 480 " 15 72 6 cases, - . - - 00 1456 50 Cash. n 1 Returned by Felton & Bigelow, Cleveland, 0. D.B. 4 1 Ark'T '* T .o-iTol " T^oT-ia T^i/1 riUnvpc! _ . _ 2.^ X ufjii, xjcvei IT HI Its xvivi vjiuvco, ------ 5?1 *o ! %Ji. ■ Providence, R.I., May 25 1875. G. A. Gaskell, Bo't of A. & W. Sprague Manf 'Q Co. D.B. 5 20 pes. Sprague Frock Prints, - •• - 4S0 yds. @ ^^' 45 60 20 '* do. Red do. - - - 480 " Oi 45 60 20 " do. Pink do. - - - 480 " 10 48 10 " do. Blue and White Prints, 360 " m 37 80 3 cases. - - . 00 177 5 GO days. 46 D.B. ^ Bo't of D. N. Lord & Co. - - Mdse. pr. bill, Mayl 18 D.B. 5 " T. P. Remington, Jr. do. do. " 1 12 84 ** do. do. do. " 5 6 95 " do. do. do. " 10 41 84 do. do. do. " 20 4 60 ** do. do. do. " 25 21 " do. do. do. " 31 4 91 23 DB. 5 " Passavant & Co. - - do. do. " 1 16 40 " do. do. do. " 20 12 20 " do. do. do. " 31 19 40 48 Forward, - - - - 1841 91 » See ir 5, p. 79. '^ See 1 C, p. 79. 84 May 31, 1875. D.B, D.B. Bro't forward. D.B. D.B. D.B. ^P'd casli for Frt. on Amoskeag Manfg Co. Inv., May 5 Sprague " " " " 31 CC <( Cost of purchases for May, ** " previous. to date. June 30 G. A. Gaskell, Baltimore, June 25, 1875. Bo't of Wm. Simpson, Sons & Co. 20 pes. Pacific Percales, - 20 " do. Organdies, 20 " do. Lawns, 5 " Lancaster Cambric, Merrimac do. - - 480 yds. @ 20,«^ ■ - 720 " 17 - - 500 " 15 . - 120 " 12 . - 120 " 14 2 cases, - - - - 60 days. Bo't of T. P. Remington, Jr. June 25 SMdse. Dr. To P. McGee— For Cartage in April, per tickets. May, June. Cost of purchases for June, " " previous, to date. ^ This shows how an entry omitted on its proper date may be entered afterwards. ^ We debit Mdse. with all we pay for cases and cartas, be- cause it is afterwards credited with all the charges we make for either. Some keep a "Drayage acc't," but it would give the learner too much trouble to illustrate it here. I ' Compare with Dr. side of Mdse. acc't. 85 40 1841 12 91 1853191 3773|38 5627 29 122 75 14 16 3 32^ 80 21 429 5627 6050 60 60 June 30, 1875. ^nmifroRY of mise. m hap this day. 50 pes. Contin'tal "C " Sliirting, 06 in., 2000 yds. @ llf 10 " Stark A A Brown Crash, - - 200 10 " do. Bleached do. - - 195 10 " Carleton Ginghams, . - - - 300 10 " Bates' Mills do. - . . - 240 10 " Simpson's Sideband Prints, - 240 10 " Eddystono Fancy do. - 3G0 25 " Amoskeag Bleached Sheeting, 1000 " 32yV 25 " do. A Brown Drilling, 950 " llf Add amount of Wm. Simpson, Sons & Co.'s Invoice, June 25, not opened at time of taking Stock, - - - 15 16 15 11 ^ The foregoing i? a complete inventory of all the goods on hand at this date. The amount of Simpson's last invoice is all that is required, as the c:oods arrived on the day Stock was taken, and were not unpacked. If freight had been paid, it would be added to the inventory. An inventory should be taken so as to show the exact cost (charges included) of the goods on hand. If not, the real gain per cent, on Mdse. cannot be ascer- tained. The gain or loss on Mdse. cannot be learned without this inventory. See Rule 2, p. 41, and ^ 15, p. 42, and Mdse. acc't, p. 124. 220 30 31 45 26 21 34;5G 327| 110,20 327 60 1173 80 86 SET III.— DOUBLE ENTRY BOOK-KEEPINa. SALES BOOK. 1. In this book we enter particulars of all sales, whether on credit or for cash, and thus avoid entering particulars of long bills on the Day Book. To illustrate, compare the entry of sale to Thos. May Peirce on S. B., p. 1, with J). B. entry of the same. What occupies ten lines on the S. B. is entered on one line in the D. B. Read ^^ 2 and 3, p. 75. 2. If the business is small, this book may be dispensed with, and the items and terms of each sale entered on the D. B. 3. Each page of this book is footed and forwarded to the end of the month to show the month's sales. The sales for previous months are added to show the total sales, and to give the book-keeper timely notice of any disagreement between the footings of his Sales Book and the foot- ing of the Cr. side of the Mdse. acc't. 4. In business, the word " sold " is rarely used in this book. 5. When a bill is made out and forwarded to the purchaser, the entry in this book should be marked " B," to show that the bill was made out and sent. See first entry on next page. 6. As each entry is passed into the Day Book, it should be marked off thus, " D. B. — ," and the page given. 7. In making out bills from this book, on bill paper with double columns, extend amounts into outer column, as shown in Form 8, p. 136. 8. All payments for cases and cartage have been charged to Mdse. in the Invoice Book. Therefore, where a charge has been made for either, it is a credit to Mdse. See Note 2, p. 85. 9. Customers frequently order articles that we do not keep or deal in. To fill such orders we go out and purchase the articles, and charge them at a small advance on the cost price. See T 6, p. Y9. 10. Names of firms and individuals should be correctly spelled. The terms of a sale should be specified, that the book-keeper may attend to the collection at maturity. It is customary in business to add one cent for a half or anything over a half cent. Anything under a half is not counted. 87 NEW YORK, April 5, 1875. Sold Tlios. May Peirce, Philadelphia, Pa. 2 pes. Bates' Mills Ginghams, - - 48 yds. @ 12^/' 20 " Carleton do. - - 600 " 16^ 40 " Contin'tal"C" Shirting, 36 in., IGOO " 12| 40 " Allendale Sheeting, 12/4, - - 1680 " 45 40 " Eddy stone Fancy Prints, - - 1440 " lOi 5 " Augusta Brown Drilling, - - 200 ** 124 ISi « Capitola Twine, 24 Cases and cartage, Terms — 60 days. Sold Charles C. Cochran, Pittsburgh, Pa. 10 pes. Stark A A Brown Crash, - - 200 yds. @ 17^ 1 " Bates' Mills Gingham, - - - 24 " 13 5 " Union Mills Checks, « 70, - - 120 " 14 13| # Hope Mill 4-ply Twine, 35 Case and cartage, - - - 60 days. Sold E. N. Hartshorn, Mt. Union, O. 10 pes. Contin'tal " C" Shirting, 36 in., 400 yds. @ 13i^ 10 " Stark AA Bleached Crash, - 195 " 19| 10 " Simpson's Sideband Prints, - 240 " 10^ 10 " Bates' Mills Ginghams, - - 240 " 13 3 doz. Kid Gloves, "Paris," 3-button, - - @ $22.00 Case and cartage, - - - - 60 days. ^ Forward, ' This mark Indicates that the bill is made out and sent. ' Refer to Note 1, p. 80. * This is an article we do not keep. See f 9, p. 87. * See Note 3, p. 80. 88 200 756 151 25 4 12 1253 60 60 20 215 1529 83 63 1 April 5, 1875. D.B. D.B. D.B. Bro't forward. Sold Felton & Bigelow, Cleveland, O. 20 pes. Carleton Ginghams, 12 ~" ■ " - 10 10 10 Simpson's Mourning Prints, Union do. do. do. Solid Black do. Thistle MUls Wigans, - 600 yds. @ 17^ 432 " 104 240 240 60 30 days. Cases and cartage, - 10| lOi 12| ■^ Sold for cash, 2 pes. Bates' Mills Ginghams, 48 yds. @ 12i^ lO D.B. Sold I. N. Forner, Pittsburgh, Pa. 10 pes. Simpson's Sideband Prints, 10 " do. Silver Grey do. - 240 5 " Augusta Brown Drilling, - - 200 " 5 " Union Mills Checks, - - - - 150 " Case and drayage, 30 days. 240 yds. @ lOi;^ loi 21i ' German Insurance Co. Dr. For 40 % damages awarded by appraisers for damage by water on goods from Joy, Langdon & Co. - - - 60 days. Forward, - - - » See Note 1, p. 81. " An entry of the receipt of this money will be found on the Dr. eide of the Cash Book. Mark it off when this is transferred to the Day Book. See % 7, p. 7J. ^ Our purchase from Joy, Langdon & Co, was damaged by water while in transit, and the appraisers report, as above, that the damages amount to 40;? on the invoice. This report makes the company in which the goods were insured responsible to me for $10308. 89 102 45 36 25 20 1529 63 April 15, 1875. Bro't forward, - . . - 1957 77 Sold Ricliard Nelson, Cincinnati, 0. D.B. 2 15 pes. Simpson's Silver Grey Prints, 3G0 yds. @ lOlf / 10 " Bates' Mills Ginghams, - - - 240 '' 13' 10 " Carleton do. . . . aOO " 17 5 " Augusta Brown Drilling, - - 200 " 13 J Case and drayage, - - - 37 80 3120 51 27 150 148 50 GO days. Sold W. H. Sadler, Baltimore, Md. D.B. i 5 pes. Augusta Brown Drilling, - - 200 yds. @ 13?,/ I 5 " Tennessee Plaids, 180 " ICj 5 " Texas do. 150 " 25 5 " Crescent Wigan, 40 " 10| Case and drayage, - - - 30 days. 27 29 2 37 5 43 1 5 5 99 10 Sold Thos. May Peirce, Pliiladelpliia, Pa. D.B. 10 pes. Bates' Mills Ginghams, - - 240 yds. @ 12}/ 2 40 " Carleton do. - - 1200 " 10, V 2 " Hampden Cottonades, 30 + 25, 55 " 3li- 2 cases and drayage, - - - 30 days. 30 198 17 3 2 5 3 247 83 Sold E. N. Hartshorn, Mt. Union, 0. D.B. 10 pes. Allendale Sheeting, 12/4, - - 420 yds7@ 50/- 2 5 " Union Mills Checks,* 70, - -120 " 14 5 " do. do. fi50, - - 150 " 21| Case and drayage, - - - - 60 days. Forward, - - - -210 16 8 32(3 2 3 261 2714 43 1 ,63 90 April 26, 1875. D.B. D.B. D.B. D.B. D.B. D.B. Bro't forward. Sold Felton & Bigelow, Cleveland, O. 10 pes. Manchester Plaids, . - . . 360 yds. @ 12/- 10 " Union Grecian Grey Prints, - 360 " 10 Jr 5 " do. Sideband do. - 180 " 10| 1 doz. "Level" Paris Kid Gloves, Case and cartage, - - - 60 days. 30 Sold David N. Lord & Co. 20 pes. Simpson's Sideband Prints, 480 yds. @ 9i%!^ 2714 63 Sold T. P. Remington, Jr. 5 pes. Union Mourning Prints, - - - 120 yds. @ lOf 5 " Crescent Wigan, 40 " 10 20 80 90 50 Sold Passavant & Co, 5 pes. Magnolia Plaids, 150 yds. @ 9if Sold for cash, 10 pes. Union Sideband Prints, - - - 360 yds. @ lOf 31 doz. Clark's O.N.T. Spool Cotton, 71 1 Sold for cash, at auction, (A2)r. 15) Invoice of damaged goods received from Joy, Lang- don & Co. of Boston. Net proceeds, 2 Sales for April, - - - - ^ When an entry has been omitted on its proper date, enter it under the next convenient date, f^iving its correct date m paren- theses, as in the ilhistration above. " Compare with the footings of Mdse. acc't. See 1 3, p. 87. 91 124 47 40 52 12 4 01 10 14 58 175 3150 May 1, 1875. Sold Felton & Bigelow, Cleveland, O. 5 pes. Pacific Percales, 120 yds. (? 5 " do. Organdies, 180 " 5 " do. Lawns, 125 " 3 " " AU Right " Ky. Jeans, - - - 90 " 6 " I Corded Alpacas, 216 " Case and drayage, - - 60 days. ==== 5 ===== 1 Returned to David N. Lord & Co. 1 doz. " Level " Paris Kid Gloves, bo't April 26, D.B. D.B. D.B. D.B. 25^ 22 20 12i 22 D.B. Sold Thos. May Peirce, Philadelphia, Pa. 10 pes. Union Mills Checks, t 700, - 300 yds 10 " do. do. do. #900, - 300 " 1 " South wark Doeskin, - - - 30 " Case and drayage, - 60 days. W 18 44 Sold E. N. Hartshorn, Mt. Union, O. 5 pes. Bates' Mills Ginfrhams, 120 yds. @ W 5 " Wamsutta Robes, - ... 120 " 10 15 " Pacific Lawns, 375 " 20 5 " Merrimac Cambric, - - - - 120 " 17 4 " Printed Delaines, 3/4, - - - 96 " 18 ^ 1 " Laborer's Doeskin, - - . - 30 " 26 Case and drayage, . - - - 60 days. 10 Sold David N. Lord & Co. 5 pes. Dunnell's Robes, 120 yds. @ 10|^ Forward, - - . - ^ A cnstomer returns an article we purchased for him, and it is charged and returned to the party from whom we purchased it Refer to I. B., p. 84, and see who returned the gloves. 92 30 39 25 11 47 2 20 150 15 60 12 75 17|76i liSO May lO, 1875. D.B. D.B. D.B. D.B. Bro't forward. Sold I. N. Forner, Pittsburgh, Pa. 5 pes. Dunnell's Pink Prints, - - - 120 yds. @ 111^^ 3 " National Doeskin, 72 " 61" (j^glj Case and drayage, - - z::z:z:=:=== 20 ===== Sold Passavant & Co. 25 pes. Amoskeag Blea. Sheeting, G/4, 1000 yds @ 20$ D.B. D.B. Sold T. P. Remington, Jr. 25 pes. Amoskeag " A " Br. Drilling, 950 yds. @ 12|'f ====== 31 ^ Sold Thos. May Peirce, Philadelphia, Pa. 15 pes. Pacific Percales, ... - 360yds.@23i^ 15 " do. Organdies, .... 540 " 20.V 1 " Serge Skirtmg, 5/8, - - - 24 " 55^ Case and drayage, . . - 60 days. Sold Passavant & Co. 25 pes. Amoskeag Blea. Sheeting, 1 0/4, 1000 yds. @ SG-f Sold Felton & Bigelow, Cleveland, O. 5 pes. Lancaster Cambric, - - - - 120 yds. @ 15^ 5 " Dunnell's Light Fancy Prints, 120 " lO^ 23» Samson Twine, 22 7 pes. Albany, Ky., Jeans, - - - - 210 yds. @ 10^ 60 days. Case and cartage, . . - By reduction on bill May 1, ' Sales for May, . . . . previous, to date, ■ Refer to Note 2, p. 91. 93 456 43 58 72 200 121 13 84 110 13 2 210 50 360 1455 3150 4606 7 June 1, 1875. D.B. 5 Sold David N. Lord & Co. 20 pes. Sprague Frock Prints, - - 480 yds. @ 10 1^ 55 2( 45 21 15 288 1152 884 45:9 27 43 2 18 4 3 50 13 ) } 3 82 13 13 13 027 812 460C 5416 40 D.B. 5 Sold T. P. Ptemington, Jr. 5 pes. Sprague Piuk Prints, - - - 120 yds. @ 11;^ | r; 20 D.B. 6 Sold C. C. Coeliran, Pittsburgh, Pa. 20 pes. Sprague Red Prints, - - - 480 yds. @ 114/' 10 doz. Globe Mills Spool Cotton, ----- 45 1 " " Rpal Kid " Pari q Glnvp<5 - - Case and cartage, - - - - 60 days, or 2% off for casli. tfi -.- .. - .. „ , 20 D.B. 6 Sold Passavant & Co. 5 pes. Sprague Pink Prints, - - - - 120 yds. @ 11$ . *>-| 20 D.B. e Sold D. N. Lord & Co. 5 pes. Sprague Pink Prints, - - - 120 yds. @ 11^ 20 D.B. C Sold Passavant & Co. 5 pes. Sprague Pink Prints, - - - 120 yds. @ llf 20 D.B. ( Sold T. & G. Gallagher, Johnstown, Pa. 20 pes. Amoskeag ACA Ticking, 36 in., 800 yd J 20 " do. Denims, - - - - 480 ' 20 " do. do. B - - - 480 * 10 " Sprague Blue and White Prints, 360 ' 2 " " Hoosier " Doeskin, - - - - 72 ' 3 " Deer Island do. 72 * 2 " Conestoga Ticking, . - - - 80 ' Cases and cartage, 60 days. Rnlpa "fnr .Timp s. @ 36/ 24 18 371 60" 23 10 ^0 " previous, 1 ft fr> dfltp 20 70 1 Compare with the Cr. side of Mdse. acc't. 94 SET III.— DOUBLE ENTRY BOOK-KEEPING. CASH BOOK. 1. The use of this book is important, for by it wo determine cacli day whether all money received or paid out has been entered. Thus, the Dr. side shows all money received ; the Cr. side, all money paid out ; and the difference between these sides is the amount on hand. When the money in bank and on hand is counted, it must agree with this difference, or balance, shown to be on hand by this book. If it does not, something has been omitted, or an error exists somewliere that must be found and corrected. See ^ 2, p. 75. 2. As the entries on this book are taken to the Day Book, each must be marked off on the left side of the money column, in ink, thus, V 3. In entering money received, write the date in the date column, on the Dr. side ; the name of the person or account to be credited with it, to the right of the • date column ; and next, the explanation and amount. Money paid out is entered in the same way on the Cr. side. Separate the Ledger titles from the explanations by drawing a light red ink line down the page. See next page. 4. The footings of this book will agree with those of its representa- tive in tlie Ledger, if your work of transferring its contents is correct. 5. In ruling this book, care must be taken to draw a footing line under the longest column of figures first, then draw the footing line, on the other side, immediately opposite. It spoils the appearance of your book to have the footing and closing lines, on one side, four or five lines above those on the opposite side. 6. The Balance entries must be written in red, and, after footing and closino; lines are drawn, should be brousjht down on the next line below the closing lines on the Dr. side. 95 1 Dr. CASH 1875. Apr. G. A. Gaskell, - Mdse. - - - Bills Receivable, German Ins. Co. Mdse. - - - do. - - - May Rec'd on account of capital, - - - - " for sale per S. B. 2, " am't of Jno. Gundry's note, - - " in fuU, " from eale at auction. S. B. 4,- - " for sale, S. B. 4, 2340.93 / 6U8.33 ./ 20 Felton & Bigelow, do. do. Bills Receivable, - I. N. Forner, - - W.H.Sadler,- - Balance bro't down, - - - - Rec'd per W. A. Miller, - - - on account, for No. 2, discounted, - for sight draft on him, - on account bill April 15, Forward, » See Note 2, p. 89. 900 6 1100 101 175 58 2340 93 2340 1732 207 150 2000 58 75 4224 18 2340 93 ACCOUNT. Cn 1 1875. Apr. 30 May Expense, do. do. Mdse. Store Fixtures, Expense, do. do. Mdse. do. A. H. Hinman, W. A. Drake, - do. - - Expense, - - Mdse. - - - Profit and Loss, A. H. Hinman, P. McGee, - - Jerry Murpliy, W. A. Drake. - G. A. Gaskell, - - Mdse, - - . - Interest, - . - A. H. Hinman, - Amoskeag Mfg. Co. W. A. Drake, - - G. A. Gaskell, - - W. A. Drake, - - I. N. Forner, - - d Freight, I. B. 1, - - - - - for Books, &c., Jno. Connor for Papering, - for Postage Stamps, - - - Jno. R. Scott Bill of Boxes, - for Counters and Shelving, - Jno. F. Cluley for Painting, - Post-office Box Rent, - - - for sundry Tools, sundry Freight Bills, - - - Insurance on Boston Invoice, on account, do. do. , Expenses to Boston, - - - Dexter, Abbott & Co., I. B. 4, Donation to Tract Society, - on account, do. Wages to date, on account, Balance to new account, - - eos.ss P'd Rent to date, Freight, I. B, 6, Discount on Conover's Note, on account, their Draft, on account, do. do. our eight Draft returned, - - Forward, - G ^ Every debit to Mdse. here will be found also on the Invoice Book, and when transferred to the Day Book must be marked off both books. 97 30 18 5 20 180 65 2 4 2 20 25 35 16 33 60 70 50 10 1732 2340 50 8 30 10 1456 45 100 30 58 1788 2 Dr. CASH 1875. May- Si I. N. Forner, W, H. Sadler, Jun. 10 July C. C. Cochran, do. Bills Receivable, do. do. I. N. Forner, - Bro't forward, Rec'd Di-aft for Bill May 10, - " for bal, on Bill April 15, 4307. 3411.74 Bal. bro't down, Rec'd for Draft on him, - - - - " for Bill June 5, - - - - " for Draft on D. T. Ames, - " for " on I. S. Preston, " of S. D. Everhart, - - - " for Protest Fees of S. D. E 3082.15 1021.72 2060.43 4324 58 24 4307 Bal. bro't down. 895 26 60 20 80;56 115 1828163 lOOi 2 50 3082 2060 2340 2574 2186 7102 27 98 ACCOUNT. Cr 1875. May 31 Jun. Mdse . - - Bills Payable, A. H. Hinman, Jerry Murphy, Bills Payable, - G. A. Gaskell, - do. P. McGee, - - ^I. N. Forner, - W. A. Drake, - G. A. Gaskell, - A. H. Hinman, W. A. Drake, - Jerry Murphy, Expense, - - do. - - Bro't forward, Fd Freight, I. B, 6, - - - - - " Acceptance, " on account, " 1 mos. Wages, Balance to N/A, - - - 34ii.74 . Fd Note to Coffin & Altemus, - - " House Rent, " his Taxes, " him on account, " Protest Fees on Everhart's Note, " him on account, " do. do. " do. do. " do. do. " him ii: full to July 1, - - - ,' " Rent of Office Safe, - . - . - " " Warehouse, - - - - Bal.toN/A, 1021.72. . ^ I. N. Fomer, the customer who gave the note, is charged with the protest fees. On June 25, when the same are paid by Everhart, you credit—not Everhart, with whom you have no deal- ing, but Fomer. In cases of this kind many learners would, without a thought as to why or on what account it was paid, credit the sum received to the party sending it. See 1 3, p. 51. 1788 82 3 40 1479.52 90 50 895, 4307 149 50 14 5 2 10 50 90 90 50 10 500 2060 3082 50 15 3411 74 1021 2060 7102 99 SET III.— DOUBLE ENTRY BOOK-KEEPINa. REMARKS ON BILL BOOKS— RULES FOR COMPUTING TIME. 1. Let the pupil examine carefully the headings of both books, and no other explanation is needed of their use and manner of entering not^s and bills. 2. When a note is received from a customer, it is entered, with all the particulars required, in the Bills Receivable Book. In making up the Day Book, the book-keeper transfers it, and affixes a transfer mark — thus, y — in ink on the left of the inner money column. When your own note is given out in settlement of a bill or account, it is entered with almost the same particulars in the Bills Payable Book, and is marked off in the same way when transferred to the Day Book. 3. In receiving or delivering the notes, either those of other persons or your own, Bills Receivable or Bills Payable must always be debited or credited for the face of the notes, and never for that for which they are received or given in payment. When a note is not received or delivered at its face, debit or credit Profit and Loss or Interest for the difference. Thus, if you buy Z. C. Marlatt's note for |500, and pay him in cash $480, your books must show — 1st, that a note for $500 has been received; 2d, that 1480 in cash has been delivered; 3d, that you have gained $20 by the transaction. See note Bills Receivable account, p. 45. 4. Great care must be exercised in extending the date of maturity of bills and notes on the Bill Books. A mistake in this part of the book- keeper's work is a serious one, invariably resulting in loss of money or credit. To guide the learner in the important work of determining the date of maturity of notes and bills, the following Rules are given : TO rai) M DATE OF MATURITY WHEN THE RUMIC HfflE IS IN DAYS. Hule. Count the number of days the note or draft has to run after the day of date or acceptance to and including the day of maturity, and add three days of grace. To illustrate the Rule, take a note dated Feb. 28, 1875, at thirty days. 100 SET III.— DOUBLE ENTRY BQOK^KE^IKa The running time is thirty days, and expires March 30, to which we add three days of grace, making the note due and payable on April 2, or thirty-three days from its date. WHEN HE RUfflNG THE IS IN MONTHS. Rule, Count from the date to the corresponding date of the next month, and so on until the number of months specified on the face of the note have been allowed, then add three days of grace. 5. Calendar months, just as they are found on the calendar, are always understood, and business usage will not permit you to extend the time of payment, because there may be a short month — February, for instance — in the term of months the draft or note may have to run. To illustrate : Two notes dated Dec. 28 and Dec. 31, 1874, each having two months to run, will both fall due the same day, viz., March 3, 1 875. It would be contrary to the custom of merchants and banks to extend the time of the last note because February has only twenty-eight days. Again: Two notes dated February 28 and March 1, 1876, at one month, will fall due March 31 and April 4, one day's difference in date, making four days' difference in maturity. 6. The pupil should be required to compute the time of maturity of all notes and bills recorded in the Bill Books. 7. The footings of the money columns in this book agree with the footings of their respective accounts in the Ledger — the Dr. side of Bills Receivable showing notes of others received, and the Cr. side of Bills Payable your own notes delivered or paid out, 8. Make no entries to the right of the inner money column until after an entry in some other book shows that the note has been properly dis- posed of. Note. This subject is exhaustively illustrated in the Counting House edition of "Duff's Mercantile, Bank, and Railroad Book-keeping." 101 BILIuS Date. No. DRAWER'S NAME. IN WHOSE FAVOR. ON WHAT ACC'T. TIME. 1875. Jaji. Apr. June 2 1 10 10 5 1 2 3 4 5 Jno. Gundry, - - - - J. S. Conover, - - - S. D. Everhart, - - - J.E.Scott, - - - - T.M. Peirce, Myself, D. L. Musselman, - - - I. N. Fomer, . - - - _ Draft on D. T. Ames, - - " " I. S. Preston, - - My own (Stock), - do. (Stock), - I. N. Fomer'e, - - R. Nelson's, - - - T.M. Peirce, - - 3mo8. 3 " 60 days. 60 " 5 » BILI.S Date. 1875. Mar. June DRAWER'S NAME. Myself, Hood, Bonbright & Co. Myself, Joy, Langdon & Co. - Myself, IN WHOSE FAVOR. Coffin & Altemus, - - - Draft on myself, - - - - D. N. Lord «fc Co. - - - Draft on myself, - - - - Wm. Simpson, Sons & Co. ON WHAT ACC'T. Bill Mar. SO and Int, 31 Acc't to June 30, - TIME. 60 days. 60 de. sgt. 3mos. 30 ds. sgt. 2mos. 102 RECEIVABLE. WHEN DUE. iMAr VTT wnrw 1 iTn (TAUT T\Tf nnnrn nn Jan. Feb. Mar. Apr. 2/5 May June 9/12 9/12 10/ /13 Juiy 1/4 Aug. Sept. Oct. Nov. Dec. AMOlTfli. 1100 2000 100 115 1828 5143 63 63 1875. Apr. May June (I 10 C. B. 1 - - 5 Discounted. 25 C. B. 2 - - 10 C. B. 2 - - 21C. B. 2 - - 1100 2000 100 115 1828 5143 - 63 63 ^ The figures 2/5 show that the running time expires April 2,'^and adding three days of grace, makes it due April 5 ; in other words, the figures show that you have not neglected to add days of grace. PAYABLE. WHEN DUE. Jan. Feb. Mar. Apr. May /31 June 29/1 July Aug. 30/2 26/ /29 Sept. Oct. Dec. AMOUNT. 149 1479 582 257 1150 mm AND now paid. 1875. June May C. B. 2 - - C.B. 2 - - Sne foot-notes below. AMOUNT. 149 1479 See ^ 7, p. 101. 103 See f 8, p. 101. SET III.— DOUBLE ENTRY BOOK-KEEPING. THE DAY BOOK. 1. This book may be dispensed with, and the contents of the auxiliary books may be transferred direct to the Journal. Considerable time and writing could thus be saved. But believing that the Day Book tends to simplify the primary steps, we use it here. 2. This book is made up by transfeiTing the contents of the different auxiliary books into it — one day's business at a time. Before transfer- ring, the student must compare the transfers on his text-book for several days' business to understand the nature of the work. He should endeavor to determine what constitutes a proper Day Book entry, and to satisfy himself that when a Day Book entry is composed of such words as will enable him to make a proper Journal entry, it is sufficient, whether worded the same as the text-book or not. A Day Book entry is nothing but a plain statement of a business transaction. It could be stated satisfac- torily in a letter to a friend, but seems difficult to make on a Day Book. After the examination, make up your Day Book for one day's business on a slate or a loose sheet of paper. Begin with any auxiliary book. If the transfers are correct, you may go over the same day's business and transfer it to your manuscript Day Book in the same manner as you would do in business. While making these transfers, be particular to use the transfer marks as directed in ^ Q, p. 77, ^ 7, p. 77, ^ 2, p. 79, ^ 6, p. 87, ^ 2, p. 95, and ^ 2, p. 100. After the transfer of a day's business is completed, examine the printed Day Book, and if any original entries are found, copy them in your Day Book. See last entry on April 26. Then rule your Day Book, journalize, post, and check. See directions on pp. 38, 39, and 40. 3. To make himself familiar with the transfer marks, their use and location, the student may copy the Day Book for April 1 from his text- book. While doing so he must keep the auxiliary books at hand so as to mark each transfer as fast as made. Permission to copy one day's business must not be- construed into permission to copy all the Day Book. 104 NEW YORK, April 1, 18T5. Q. A. Gaskell begins business with a capital of $4000, as follows : Cash in hand, per C. B. 1, John Gundry's note, per Bill Book, J. S. Conover's « ♦' " " - $1100. - 2000. Bo't of Hood, Bonbright & Co. Mdse. at 60 ds. I. B. 1 " " David N. Lord & Co. do. "90" " 1 " W. Simpson, Sons & Co. do. "GO " " 1 " Campbell, Knowles& Co. do. " CO " " 2 " Coffin & Altemus, do. " C. "2 " Joy, Langdon & Co. do. "4 mos. " 3 P'd Cash for Freight on Mdse. ------- " " " Books and Stationery for office use, $oO . " " " Paper Hanging in office, - - - - 18. " « << Postage Stamps, 5. Sold Thos. May Peirce, " Charles C. Cochran, " E. N. Hartshorn, " Felton & Bigelow, '* for Cash, Mdse. at 60 ds. per S. B. 1 do. " 60 " " " 1 do. " 60 " " " 1 do. " 30 " " " 2 do. " " 2 P'd Cash for bill of Packing Cases, " " " Counters and Shelving, " " " Painting Office, &c. - - - - $65. " " " Post-office Box Rent, - - - - 2.50 " " " Store Tools, 4.10 " " " Sundry Freight bills, - - - - 8.72 " " " Marine Insurance, 2.57 ' See Note 4, p. 28. " We give the terms of both purchases and sales. 10 and 11, pp. 136, 137. 105 See Forms 900 3100 — 1479 52 582 465 88 293 3511 147 10 257 70 2 89 53 — 1253 60 60;20 21583 20791 6 — 20 180 71 60 11 29 4000 3225 55 55 89 1743 54 282 89 April 10, 1875. Sold I. N. Forner Mdse. per S. B. 2 @ 30 ds. - - - 1 The appraisers appointed to determine the per- centage of loss on the goods shipped by J07, Lang- don & Co. of Boston, and insured against loss or damage in the German Insurance Co., have awarded per S. B. 3 // Rec'd Cash in payment of Bills Rec. 81-..-- // P'd Cash to A. H. Hinman (book-keeper) on acc't, - - tc (( i( ^^ ^ Drake (salesman) on acc't, - - - // Gave Coffin & Altemus my Note No. 1, dated Mar. 30, at 60 days, for And Interest at rate of 9%, ======= 15 ===^= Bo't of Wm. Simpson, Sons & Co. Mdse. per I. B, 3 - // Sold Richard Nelson Mdse. at 60 ds. per S. B. 3 - - " W. H. Sadler " " 30 " '' " 3 - - -Rec'd Cash from German Insurance Co. in full, - - " " for sale of Damaged Goods at auction, - - // ^Accepted Hood, Bonbright & Co.'s Draft, at 60 days sight, viz., Mar. 29, for am't of their bill of same date. ====^= 20 ====== Sold Thos. May Peirce Mdse. per S. B. 3 @ 30 ds. - - " E. N. Hartshorn do. " ** 3 @ 60 " - - 1 See Note 3, p. 89. " If an entry that should close an account will not do so, the book-keeper must conclude that either an allowance or a mis- take has been made in settlement. If an allowance has been made, it must be entered immediately. » This was a draft with the date of acceptance fixed at same , date as bill of Mdse. 106 111 103 15 08 20 25 147 2 148 99 101 175 247 261 214 1100 45 149 345 247 276 1479 509 23 92 52 26 April 20, 1875. 3 P'd Cash to W. A. Drake, on acc't. Rec'd of I. N. Forner, on acc't, S. D. Everhart's Note for ===== 26 ===r=r= Sold Felton & Bigelow Mdse. per S. B. 4, at 60 days, P'd Cash for Expenses of Trip to Boston, i« « .c Dexter, Abbott & Co.'s bill, " " " Donation, " " to A. H. Hinman, on acc't, // Rec'd of Rich'd Nelson, on acc't. Draft on D. T. Ames, n ^Allowed the German Ins. Co. 2 % disc't for Cash on my Claim for Damages, - - 30 === 3Bo't of D. N. Lord & Co. Mdse. per I. B. 4. 4 bills, " " Passavaut & Co. do. " " 4. 2 " " " T. P. Remington, Jr. do. " " 4. 1 " Sold David N. Lord & Co. Mdse. per S. B. 4, " T. P. Remington, Jr. do. " " 4, " Passavant & Co. do. " " 4, " for Cash, do. " " 4, P'd Cash to P. McGee (drayman), on acc't, - - - " ** " Jerry Murphy (warehouseman), on acc't, " " " W. A. Drake, on acc't, ^ Refer to your I. B. to see what this bill was for, or you will not know what to debit for $a3.60 in your Journal. ^ This is termed an orio-inal entry, as it is not to be found in any of the auxiliary books. Copy it into your Day Book, as directed in the lower part of f 2, p. 104. This amount was allowed on April 15, but no entry was made of it then. See Note 2, p. 106. * To save space and labor, we pfive the number of bills and total amount only. We have details in Invoice Book. 107 47 52 16 14 25 58 01 5 50 10 60 May 1, 1875. Sold Felton & Bigelow Mdse. per S. B. 5, Rec'd of Felton & Bigelow, per W. A. Miller, Cash in payment of their bill April 5, tr . P'd G. A. Gaskell, on acc't. Cash for House Rent, - - .====== 5 - Bo't of Amoskeag Manf'g Co. Mdse. per I. B. 5, - - Ret'd by Felton & Bigelow do. " "5, - - // Sold D. N. Lord & Co. Mdse. per S. B. 5, " Thos. May Peirce do. " " 5, @ 60 ds. - - " E. N. Hartshorn do. « " 5, @ 60 " - - _ - . // Rec'd Cash from Felton & Bigelow, on acc't, - - - - 1 (< SI fQp j^ g Conover's Note, discounted, - - // P'd Cash for Freight on Mdse. Id ii (( Discount on J. S. Conover's Note, - - - " " to A. H. Hinman, on acc't, 10 r======:. Sold D. N. Lord & Co. Mdse. per S. B. 5, " I. N. Forner do. " " 6, Cash, - - - _____ // P'd Cash to Amoskeag Manf'g Co. on sgt. D'ft, - - - " " " W. A. Drake, on acc't, " " " G. A. Gaskell, " " // Gave David N. Lord my Note No. 3, at 3 mos., in set- tlement of bill Mar. 31, ^ The face of the note is entered as money received, and, in the next entry, the discount is entered as money paid out. Make an entry in the "Bill Book" to show "how "disposed of." See T 3, p. 100. 108 1456 23 21 116 150 50 150 2000 155 207 50 1479 288 2150 37 91 50 46 60 10 1456 45 100 50 48 71 1601 582 60 32 50 May 20, 1875. Sold Passavant & Co. Mdse. per S. B. 6, - - - " T. P. Remington, Jr. do. " "6, - - - _^ n iRec'd Cash of I. N, Forner for bill of May 10, - - - ** ** W. H. Sadler, on acc't of Ml Apr. 15, - ====== 25 === P'd Cash to W, A. Drake, on acc't, 1 <( 8.94 By Bal. bro't down, 2 149 « 1479 5 582 8 257 " 1150 3618 1989 Answer questions under Bills Payable acc't, p. INTEREST ACCOUNT. 1875. Apr. May June To Bills Payable, - " Ger. Ins. Co. - " Cash, - - - - " C. C. Cochran, - " Bills Payable, - 1 1875. 2 2 32 June 30 3 2 00 4 30 7 1 64 8 11 47 38, 40; By Profit & Loss, f . Refer to note at foot of p. 65 ; Classification, pp. 72, 73 ; and Rule III., p. 41. RICHARD Cincinnati, o. NELSON. 1875. Apr. 15 To Mdse. - 148 50 1875, Apr. 26 By BUls Rec. W. H. Baltimore, Md. SADLER. 1875. Apr. 15 To Mdse. 99 1875. May By Cash, " do. 129 5 6 75 24 99 9 Dr. PASSAVANT City. & CO. Cr. 1875. Apr. May June To Mdse. - " do. - " do. - " do. - " do. - 600.65 126.50 1875. s 14 25 Apr. 30 5 200 May 31 6 860 « 13 20 7 13 20 By Mdse. " do. 2 bills. 3 " 126.50 50 T. P. citu. REMINGTON, Jr. 1875. Apr. May June To Mdse. - " do. - " do. - 1875. 3 16 Apr. 30 5 121 13 May 31 6 13 20 June 30 By Mdse. do. do. 1 bill. 6 " 1 " 3 10 5 91 8 80 P. McGEE (Drayman). 1875. Apr. June To Cash, " do. 4 7 5 5 1875. June 30 Drayage to date, - lo! 11. 8 21 JERRY MURPHY (Warehouseman). 1875. Apr. 30 May June To Cash, " do, " do. 50 50 50 150 1875. June 30 By Wages to date, 150 150 130 10 Dr. AMOSKEAO Manchester, N. IT. MFG. CO. Cr 1875. May 10 To Cash, 1456 50 1875, May By Mdse. 1456 A. & W. SPRAGUE Providence, B. I. MFG. CO. 1875. May 31 By Mdse. T. & G. Johnstown, I'a. GAI.L.AGHER. 1875. June 25 To Mdse. 7 637 10 BALAISTCE ACCOUNT. 1875. June To Cash, - - - f. " Mdse. - - - " D.N.Lord&Co. " E. N. Hartshorn, " Felt. & Bigelow, " I. N. Fomer, - " Store Fixtures, - " Rich'd Nelson, - " Passavant & Co. " T.&G.Gallag'r, 1 1875. 2 2060 43 June 30 3 1173 801 4 53 19 6 627 155 11 32; 48; 7 180 8 33 50| " 9 474 15 10 627 5396 10 12 ByCamp.K.&Co.f. A. H, Hinman, - W. A. Drake, - Bills Payable, - T. P. Remington, P. McGee, - - Sprague Mfg. Co. Stock, _2M1.91_ _ 5 293 7 20 t< 25 8 1989 9 31 9 11 10 177 1 2848 5396 Answer questions under Balance acc't, p. 49. 131 SET III.— DOUBLE ENTRY BOOK-KEEPING. REMARKS. 1. Let the learner examine his Profit and Loss, Stock, and BalancQ acc'ts to learn the object and result of closing the Ledger. 2. The Profit and Loss acc't shows the gains and losses as gathered from all sources, and the difference between the two sides of the acc't indicates that the business has resulted in a loss of $886.99. This loss is not only- recorded in the Profit and Loss acc't, but is taken to Stock acc't, where it stands charged to the owner of the business as if he had reduced his capital by drawing out in cash the same am't. To prove the correctness of this exhibit of loss and its effect in reducing the capital of the business, the Balance acc't is used to corroborate this exhibit of Profit and Loss acc't. Tlius tlie Balance acc't shows on the Dr. side that all the effects and debts due tlie concern amount to $5396.13 And that the concern owes 2547.91 Leaving as capital due the owner of the concern the sum of - - - 2848 . 21 The original capital on April 1 was 4000 . By the above exhibit the capital has been reduced this amount - - $1151.79 For the particulars of this reduction we turn to the Stock account. There we find that the owner has drawn out the sum of $264.80 And that there was a loss of 886 . 99 So Stock acc't, when Profit & Loss is closed into it, shows a decrease of $1151 . 79 in the capital. Both accounts show that the net capital is only $2848.21. 3. The object in closing the Ledger may then be stated as follows : 1st. To ascertain the gain or loss for a certain period. Sd. By the work of closing to record the gain or loss for that period. 3d. By the Balance acc't to show that the gain or loss is a reality. 4. Direct the learner to write the answers to questions on p. 50. Ex^ plain that the questions must be answered from this set, and not Set II. 5. The contents of an old Ledger are taken to a new one by a Journal entry, or a transfer on the face of the Ledger, by closing each acc't with the entry, "Bal. to Ledger B, fol. — ," and transferring it to tlie acc't on new Lcdo-cr. 132 SET III.— DOUBLE ENTRY BOOK-KEEPINa. EXERCISES IN BUSINESS FORMS. After writing tlie answers to the questions on p. 50, make out the fol- lowing forms. Write bills on bill paper, and all other forms on cap or letter paper. We give forms on pp. 134, 135, 136, 137, 138, and 139. Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write Write note given by John Gundry for $1100. See entry D.B. indorsed note given by J. S. Conover for $3000. See entry-D.B. See entry D.B. See entry C.B. See entry D.B. See entry D.B. See entry D.B. See entry D.B. See entry D.B. bill for goods sold 0. C. Cochran, receipt for money paid Jno. F. Claley. note given to Coffin & Altcmus. letter to send with above note, acceptance given to Hood, Bonbright & Co. indorsed note given by I. N. Forncr. receipted bill for Dexter, Abbott & Co. draft on D. T. Ames, received of R. Nelson, receipt and duplicate for W. A. Miller for payment on account See entry D.B. letter of acknowledgment to Felton & Bigelow. See entry D.B. note given D. N. Lord & Co. See entiy D.B. sight draft on I. N. Fomer. See entry D.B. letter of acknowledgment to I. N. Fomer. See entry D.B. letter of acknowledgment to W. H. Sadler. See entry D.B. statement of Thos. May Peirce's account. See Ledger, p. statement of E. N. Hartshorn's account. See Ledger, p. draft on T. S. Preston. See entry D.B. account for L N. Fomer. See Ledger, p. receipt for Thos. May Peirce. See entry D.B. out acc't of Wm. Simpson, Son & Co. See Ledger, p. April 1, p. 105. April 1, p. 105. April 5, p. 105. April 5, p. 97. April 10, p. 106. Foi-m Form Form Form Form Form April 15, p. 106. Form April 20, p. 107. Form April 26, p. 107. Form April 26, p. 107. Form of Felton & Bigelow. May 1, p. 108. Form May 5, p. 108. May 10, p. 108. May 20, p. 109. May 31, p. 109. May 20, p. 1C9. 126. 127. p. 110. 127. ' June 5, p. 110. 125. Form Form Form Form Form Form Form Form Form Form Form The pupil is required to write forms such as he is supposed to give and receive in business transactions. The Day Book rarely gives the full particulars for the forms, but the auxiliary books do, and the student must refer to them when particulars are not given on the Day Book. If necessary, teachers may direct the pupils to make out double tho number of papers required of them by us. 133 SET III.— DOUBLE ENTRY BOOK-KEEPINa. Form 1. — Promusory Note. Cincinnati, 0., Jan. 2, 1875. Three montlis after date, I promise to pay G. A. Gaskell, or ord Eleven Hundred Dollars, for value received. John Gundry. Note. When this note becomes due, or is passed away before maturity, G. A. Gaskell n: indorse it by writing his name on the back in black ink, it being payable to his order. Pennsylvania, the clause, "without defalcation," should be inserted before or after "ve received." A note indorsed with the name of the person or persons to whom it is made j. able becomes payable to any holder without further indorsement. Form 2, — Indorsed Promissory Note. COLDWATER, Micli., April 1, 1875. $2000,"^. Three montlis after date, I promise to pay to the order of D. L. M selman, Two Thousand Dollars, for value received. J. S. CONOVER. Note. This note having an indorser (D. L. Musselman) when it comes into my possess: Is designated as an " indorsed promissory note." Form 3. — Demand Note. Cleveland, O., April 1, 1875. On demand, we promise to pay John Jamison, or order, Five Hundred Dollars, for value received. E. & W. Patterson. Note. When the note is signed as above, the parties must be partners. The next form shows how the note is to be worded when two or more persons, who are not partners, sign it. Form Ji^ — Joint and Several Promissory Note. New York, April 10, 1875. $500. Thirty days after date, for value received, we, or either of us, promise to pay to the order of U. S. Grant, Five Hundred Dollars. John Brown, John Jones. 134 SET III.— DOUBLE ENTRY BOOK-KEEPING. Form 6, — Sight Draft, New York, May 20, 1875. $58,Vff. At sight, pay to tlie order of Geo. R. Duncan, casliier, Fifty-eight '^/loo Dollars, for value received, and charge. Yours respectfully, G. A, Gaskell. To I. N. FORNER, Pittsburgh, Pa. Note. A Bight draft is usually made payable to the order of the cashier of the bank, where it is deposited to your credit the same as money. Form 6. — Time Draft. Cincinnati, O., AprU 10, 1875. Sixty days after date^ pay to the order of Richard Nelson, One Hundred and Fifteen Dollars, for value received, and charge, Yours respectfully, John R. Scott. To D. T. Ames, New York, N.Y. Form 7. — Acceptance, 4 Philadelphia, March 27, 1875. ; i $1479^^. ^* % Sixty days after sigTit, pay to the order of Ourselves, Fourteen ^^ , Hundred and Seventy-nine ^^/loo Dollars, for value received, and ^ . charge, -2 ^ Yours, &c., i^;| Hood, Bonbright & Co. & To G. A. Gaskell, ^ New York, N.Y. Note. We give the -wording of the acceptance at the end of the note, but the pupil must write it across the face of it, and in red ink. 135 SET III.— DOUBLE ENTRY BOOK-KEEPING. Form 8. — Bill of Items. New Yokk, April 5, 1875. Mr. Charles C. Cochran, Bo't of G. A. Gaskell. 10 pes. Stark A A Brown Crash, 1 " Bates' Mills Gingham, - 5 " Union Mills Checks, « 70 13| « Hope Mill 4-ply Twine, Case and cartage, 60 days. Form 9. — Receipted Bill. Mr. G. A. Gaskell, - 200 yds. @ - 24 " @. . 120 " @ 17 34 13 3 14 16 35 4 1 60 Boston, April 24, 1875. Bo't of Dexter, Abbott & Co. 5 pes. Dunnell's Light Faney Prints, - - 120 yds. (c 5 " do. Robes, 120 " ^ 5 " do. Pinks, 120 " (c Received payment. Dexter, Abbott & Co. Per Nath. Dott, 9 10 91 11 91 11 33 1 Mr. Thos. May Peirce, Form 10. — Statement. New York, June 1, 1875. To G. A. Gaskell, Dr. 1875. Apr. 5 " 20 May 5 « 31 For Mdse. per bill, 60 days, do. " 30 " do. " 60 " " do. " 60 " Due June 10. 1253 247 116 210 1828 Note. In a Btatement the pupil may give the date that each hill matures. Thus, "Due June 4," instead of the running time, as we do above. No statement should he sent to a cus- tomer unless the term of credit, if any, is clearly stated. 136 SET III.— DOUBLE ENTRY BOOK-KEEPINa. Form 11. — Account. New Yoek, June 1, 1875. Messrs. Felton & Bigelow, In account with G^A. Gaskell, Dr. 1875. Apr. 5 " 26 May 1 31 1875. May 1 5 (( By Cash per W. A. Miller, " Mdse. returned, - - - " Cash on account, - - Balance due. 207 124 155 48 536 207 91 23 150 — 380 155 Note. When making out an account, particulars of each credit should he given. Form 12. — Receipt. )^. Received New York, April 5, 1875, of G. A. Gaskell, Twenty Dollars, in full for bill of Boxes. John R. Scott. Form 13. — Receipt on Account. New Yokk, April 30, 1875. $5i"^*'^. Received of G. A. Gaskell, Five Dollars, on account of Cartage. his P. X McGeb. Witness : Chas. P. Duff. '"''* Note. When a person cannot sign his name, he must make his mark in presence of a wit- Then the witness attests by signing his name on the left of the paper, as shown above. Form IJ/.. — Receipt for a Particular Bill or Item. New York, May 10, 1875. for Five Hundred and Eighty-two Dollars, which, when paid, will be in full for biU of March 31, 1875. ' David N. Lord & Co. Per S. W. Patton. Note. Never give a receipt " in fuU to date " when the payment covers any particular bill or item. SET III. -DOUBLE ENTKY BOOK-KEEPINa. Form 15. — Receii:>t for a Payment on Account of Another Party. New Yoek, May 1, 1875. $207 i%V. Received of W. A. Miller, Two Hundred and Seven »Vioo Dollars, in payment of Felton & Bigelow's bill of April 5, 1875. G. A. Gaskell. Per IIiNMAN. Note. If a duplicate receipt for the ahove is required, make an exact copy, and write the word "Duplicate" across its face, about two inches from the top, or left end. Form 16. — Limited Order for Mdse. Pittsburgh, Pa., April 10, 1875. $90rV(7- Pay William Allen, or order. Ninety Dollars in Mdse. and charge, Eisner & Phillips. To Joseph Horne & Co., Pittsburgh, Pa. Form 17. — Open Order for Mdse. Pittsburgh, April 10, 1875. Please furnish William Allen with such Mdse. as he may want, with bill of same, and charge. Yours, &c., S. S. Cox. To P. Duff & Sons, Pittsburgh, Pa. Form 18. — Order for a Specified Article, Memphis, Tenn., April 10, 1875. Please let the bearer have one Suit of Clothes, with bill, and charge, Yourc, &c., John Taylor «& Co. To John Webb, Memphis. 138 SET III.— DOUBLE ENTRY BOOK-KEEPINa. Form 19. — Check. $102j^oV Pittsburgh, June 23, 1875. CENTRAL BANK, Pay G. A. Gaskell or order, One Hundred and Two , -f^^ Dollars. S. D. EVERHART. Form 20. — Letter Inclosing Note. New York, April 10, 1875. Messrs. Coffin & Altemus, Baltimore, Md. Gentlemen^ Inclosed find my note dated Marcli 30, at 60 days, for One Hundred and Forty-nine *^/ioo Dollars, in settlement of bill Marcli 80, and interest. Please acknowledge receipt to Yours respectfully, G. A. Gaskell. Form 21. — Letter of Acknowledgment. New York, May 5, 1875. Messrs. Felto:^^ & Bigelow, Cleveland, O. Gentlemen, Your favor of the 3d is to hand, with draft for One Hundred and Fifty Dollars, on account, for which you have ray thanks. Very respectfully, G. A. Gaskell. Note. This form, with a slight change, will be suitable for the acknowledgment of any re- mittance. Thus, if the remittance will cover any particular bill, say April 1, omit the clause " on account," and in lieu of it insert '' in full for bill of April 1." The form, with but slight alteration, can be used to acknowledge the receipt of a note or time draft. Form 20 may be used in a multitude of cases. For instance, in sending bank checks or drafts, time or eight drafts on firms or individuals, currency, Post-office money orders, and notes. Change the form so that it will show what you sent, and what it is sent for. 139 SET IT.— DOUBLE ENTRY BOOK-KEEPING. MANUFACTURERS' BOOKS. EXHIBITING THE USE OF THE AUXILIARIES, AND TRANSFERRING THEIR CONTENTS DIRECTLY TO THE JOURNAL, WITHOUT THE INTERVENTION OF THE DAY BOOK— A PROCESS BY WHICH TIME AND LABOR ARE SAVED. INTRODUCING VARIOUS ACCOUNTS SHOWING COST OF MANUFAC- TURING, BUILDINGS, MATERIALS, IMPLEMENTS, &c. ALSO, A NEW FORM FOR KEEPING BILL ACCOUNTS, AND THE MOST SIMPLE, YET COMPLETE AND COMPREHENSIVE FORM OF BALANCE SHEET EVER PRESENTED. ALSO, THE SIX-COLUMN JOURNAL BY WHICH WRITING IN THE CASH AND MDSE. ACCOUNTS IS REDUCED TO ABOUT ONE LINE FOR ONE HUNDRED. REMARKS. Having in the preceding set given an illustration of tlie auxiliaries as used in a merchandising business, we illustrate their use in this set in a manufacturing business, dispensing with the Day Book, and transferring their contents directly to the six-column Journal. Our object in introducing a set of manufacturers' books is to satisfy the learner that, by the use of rules and principles already acquired, and a little judgment in meeting the requirements of the business, he can open and keep books for any business coming within the scope of his acquirements as a book-keeper. Many authors object to the introduction of manufacturers' books in a work of this kind, alleojing that such are too difficult for the learner. But we venture the prediction that the learner, after going through with the following set, will side with us in saying that he has with little diffi- culty acquired a knowledge of new features in the science of book-keep- ing, and has satisfied himself of the comprehensive character of its rules and principles, and of his ability to apply them in conducting books in any new or strange business. 140 SET IV.— DOUBLE ENTRY BOOK-KEEPINa. SALES BOOK. 1. Manufacturers generally have a printed price-list by which all goods are sold at a discount. Large and responsible buyers, or jobbers as they are often termed, receive the largest, while retailers or small buyers receive the smallest discount. The price-list is often so arranged as to provide for different discounts on the various lines of goods manu- factured. One article may be sold at 75^ discount, and another at a discount of 10^ off the price-list. Li a business of this kind the Sales Book should be ruled with three money columns. See entry of sale to D. R. Lillibridge, Sept. 1. 2. The pupil should calculate and extend some of the sales on the following pages, to acquire a knowledge of this part of the work. 3. Page your manuscript book in the upper outside corners, as in the text-book. Each page, when full, must be footed and forwarded to the end of the month, and then compared with the footing of the credit Mdse. column of the Journal. 4. See Sales Book for Set III., p. 87. The directions for transferring the contents of this book as given there apply here, except as to the transfer mark, which must be "Jour. 1," instead of "D. B. 1." 5. The pupil must be particular to examine all the notes that he is re- ferred to in any part of the work. He may think that the note is familiar to him, and be mistaken. 6. Before a book-keeper of experience can journalize correctly, he must first ascertain what accounts are kept in the books. Without this information he may debit Profit and Loss for an item that should go into Expense — an acc't he did not know was kept. If he did not make an examination and find that a Metal acc't was kept, he might debit all pur- chases of that article to Mdse. The learner must find out what accounts are kept in the same way that the experienced book-keeper does, viz., by an examination of the Ledger. This must be done before attempting to transfer any of your auxiliaries to the Journal. 141 NEW YORK, July 1, 1875, Sold for Cash, 133 # Washers, — lO @w Sold B. M, Worthington, Madison, Wis. 50 "Excelsior" Cook Stoves, S9, - - - - @ $25. 50 Galvanized Stove Reservoirs, fl 9, - - - @ 9 . 50 do. Ham Boilers, # 9, - - - - @ 5. 60 day acceptance, Less 25%, - - - or 2 ^ oif for cash. Less Frt. to Chicago, 13,500 S @ 35/ 2Sold D • ^v. L. Musselman, Quin 50 plain By Sauce Pans, 5 *' Straight do. 50 " Round Boilers, 10 " Shallow Stew Pans 10 '' Yankee Bowls, 2 " Stove Ham Boilers, 10 " Tea Kettles, 5 " Skillets, 5 " Stove Pots, Cash. 84 97 1.12 Ea. 2 3 4q. 84 97 1.12 £Ja. 2 3 4:0. 1,12 1.28 1.48 1.61 Ea. 4 5 6 la. 75 85 96 Ea. t2 3 4 1.47 1.60 Ea. i4 5 4.00 4.50 5.00 Ea. $11 8 9 1.60 1.70 1.90 2.00 Ea. $6 7 8 9 1.00 1.20 1.40 Ea. #9 10 12 1.70 2.00 Ea. #8 9 Less 75^, - - - 6 Casks $9 and Tierce 75/ Sold for Cash, 1 "Excelsior" Cook Stove, # 9, - ^Forward, - ^ See t 4, p. 141. " In making extensions of this bill add together all the prices on eacli line, and multiply each sum so obtained by the quantity or number. Thus, on ttie first line you have three prices, viz., 84<|;, 97™ i'^/* S -JA *< Slr^T^ «< '''0^ 12.00 16.00 ^" ^^°P Ea. 16/16 18/24 20/24 60 days. Less 40%, - - - Jour. Sold H. W. Flickinger, Philadelphia, Pa. 10 ''Centennial "Cook Stoves, ^^ ^^jP? ^^-^ ^'^q 10 "Educator" - ^^" ^jOg ^-^g 120 # Assorted Castings, - - - ' - - - - @ 10^ 90 day note. Less 20%, - - - Sales for September, - - - do. previous, - - - do. to date, - - - - 60 3295 7532 73 36 10828 09 ^ Here i5fo of $725.— $181.25 is first deducted, leavino; $543.75 upon which to compute the 10;^. Add the two discounts or amounts too^ether, and you have the total, $235.63. The pupil should calculate this discount to see that he understands it. If the cash has been received for this sale it will be found on the C.U. Refer to it. 147 1 Br. CASH 1875. July Aug. Stock, Mdse. do. Hec'd for Capital, - - - " per S. B. 1, - - - " " " 1, - - - 9038.30 8405.10 "633.20 Balance, - . - - B. F. Moore, - - Bills Receivable, t 2, Excelsior Mfg. Co. D. L. Musselman, Bills Payable, S 3, Bro't dowB, Kec'd on account, " for Worthington's Acceptance, " Draft by mail, " Draft for bUl Aug. 10, - - - " Net proceeds of our Note disc'd, 6884.05 2764.80 4119.25 Read and follow instructions on p. 95. 148 9000 13 25 30 9038 633 800 1401 450 1125 3473 6884 05 ACCOUNT. €r. 1 1875. July 10 20 31 Aug. 10 Buildings, - - Flasks, - - - Patterns, - - Mdse. - - - do. - - - Expense, - - Flasks, - - - Patterns, - - Expense, - - do. - - do. - - Foundry Wages, Flasks, - - - Patterns, - - Expense, - - Foundry Wages, Patterns, - - Expense, - - Mdse. - - - . do. . . . . Expense, - - • Foundry Wages, - Flasks, - - - - Expense, - - ■ B. F. Sturtevant, - Foundry Wages, - Patterns, - - - Flask, - - - - Expense, - - - Excelsior Mfg. Co. P'd on acc't of Fonndry Buildings, - - "• Walters & Son for Lumber, - - - " J. R. Hutchison for Metal Patterns, " R. Lea for Moulding Sand, - - - " Dawson Bros, for Foundry Facing, " for Postage Stamps, " Andrew Murray for making, - - do. do. - - " Insurance Premium, " Root, Anthony & Co., Blanks, &c. " for printing Price-List, - - - - " Hands to July 17, do. "17, " do. "17, " for Sundries to July 17, - - - - " Hands to date, " do. do. " for Sundries to date, - - - - Balance carried down, - - 8405.io . P'd S. D. Everhart for Coal, - " G. & L. Moul for Coke, - " State License to April, 1876, " Hands to Aug. 7, - - - " do. "7, - - - " Sunds. "7, - - - " for bill of June 25, - - - " Hands to Aug. 28, - - - " do. "28, - - - " do. "28, - - - " Sunds. " 28, - - - " Standard Bolt Co. - - - Balance carried over, - - 2764, 149 2 Br. CASH 1875. Sep. 30 Balance, - . - - Mdse. ... - J. J. DeHan - - Bills Receivable, t5, do. «3, Mdse. - - - - Bills Receivable, 81, Bro't over, Kec'd for cash sale, S. B. 5, - " for our sgt. Draft on him, " am't of Dalzeirs Note, - " n. p. Spencer's Note, - " for gale per S. B. 5, - - " for Musselman's Note, - 6024.46 5739.24 Balance, | Bro't down, Note. To make room for explanations we use but one money column on Dr. and Cr. side of this book. It can be ruled with double money columns, and the total receipts and payments extended in the outer columns for comparison with the monthly footings of the Cash columns in the Journal. In business this book should be balanced, in pencil, daily, in order to get timely notice of any disagreement between the balance here and the amount of cash on hand. 4119,25 18! 68 71 1851 975 84 489 37 168 29 6034 285 160 ACCOUNT. Cr 1875. Sep. 10 20 30 Bills Payable, % 1, Mdse. do. Interest, - - - . Foundry Wages, - Flasks, - - - . Patterns, - - - Expense, - - - Samuel G. B. Cook, Foundry Wages, - Patterns, - - - Flask, .... Expense, - - - D. L. Musselman, do. Expense, - - - do. - - . P'd Wilhelm & Co. Note in part, - " L. S. Thompson for Coa], - - " N. J. Bigley for Coke, - - . - " on renewal of Bills Payable, jf 2, "• Hands to Sept. 4, " do. "4, " do. '^ 4, " Sunds. '* 4, " his sgt. Draft on me, - - - - " Hands to Sept. 18, " do. " 18, " do. " 18, ~ ... - " Sunds. "18, " Prot. Draft returned to us, - - " Protest Fees and Interest, - . " for collection of Bills Rec. J 1, - " City Taxes, Balance carried down, 6739.24 . . Note. Careless persons having access to this book will often charge s payment to the wrong account. The careful book-keeper will be prompt to detect and correct errors of this kind, as he is expected to know what account should be debited for every payment. It is no excuse for a book- keeper to say to an employer, "It is not my fault ; I did not make the entry." 2500 95 140 13 750 25 25 20 28 820 50 30 21 1125 5 20 90 6024 46 161 BILLS Date No. 1875. July 20 1 " 10 2 i« 31 3 June 30 ! 4 July 10 5 Aug. :- 6 Sept. 7 DRAWER'S NAME. D. L. Musselman, - - B. M. Worthington, - R. C. Spencer, - - - W. G. Hawkins, - - Samuel Dalzell, - - - B. F. Moore, - - - - Jo^in R. McGinley, - - IN WHOSE FAYOR. Myself, - - - Acceptance, - - n. W. Flickinger, Myself, - - - Eisner & Phillips. ON WHAT ACC'T. TIME. Bill of July 20, - - 60 days. 10, - - 60 " 31, - -|60 " H. W. Flickinger, - 6 mos. u " . la " Bal. of his o/c Jno. R. McGinley, 60 days. 12 mos. Note. Road pp. 100, 101. BILLS Date. 1875. June Aug. Sept, July Sept. No. DRAWER'S NAME. Myself, IN WHOSE FAYOR. Wilhelm & Co. - - - - J. R. Hutchison & Co. - Myself, ------ Wilhelm & Co. - - - - J. W. Pope, J. R. Hutchison «& Co. - ON WHAT ACC'T. Foundry Buildings, - Contract for Engine, - My accommodation, - Part renewal of J 1, - Bal. due him, - - - Renewal of J 2, - - TIME. 60 days. 2 mos. 60 days. 60 " 4 mos. days. Note. In this Set all notes are numbered both in the Bill Books, Journal, and Ledger, as will be seen by referring to them. Each account in the Ledo^er is the counterpart of its representa- tive here. This is the result of posting by number, and reserving the space opposite and on the Bame line, for the entry to be posted when the note is disposed of or paid. See Bills Pay., p. 166, 162 RECEIVABLE. WHEN DUE. AMOUNT. WHEN AND HOW DISPOSED OF. AMOUNT, Jan. I'eb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 18/ /21 8/11 168 29 1875. Sept. so CoUected, - 168 29 1415 ^ Aug. 10 Remitt'dfor lessl^ - 1415 25 29/2 978 45 Sept. 20 Discounted, 978 45 30/2 10/ /13 76 1/4 1/4 250 185 320 525 50 (C 20 Collected, - 185 PAYABLE. WHEN DUE. Jan. Feb. Mar. Apr. May June July Aug. Sept. ' Oct. 29/1 30/2 3/6 Nov. 30/2 31/3 10/ /13 Dec, AMOUNT. 5000 2400 2500 2500 5700 2400 WHEN AND HOW PAID. 1875 Sept P'd2500,Re- new'd 2500, Renewed for AMOUNT. 5000 ^00 and Bills Rec, p. 166, Compare these with the Bill Acc'ts, pp. 125, 129, and notice that a glance at either of the accounts there will not show what notes are paid or unpaid, unless all are paid and the account closed. When either of these accounts is balanced in the Ledger the Bill Books Bhould be made to conform. 163 SET IV.— DOUBLE ENTRY BOOK-KEEPING. SIX COLUMN JOURNAL. 1. In this form of Journal tlie debits, as heretofore, occupy the left, and the credits the right, hut the names of the accounts are between the debits and credits instead of before them as in the ordinary two column Journal. Each side is ruled with three columns. The outer columns on each side are for Mdse. ; the next for Cash ; and the two inner ones for Sundries, i. e , everything but Cash and Mdse. The debits and credits to the Cash and Mdse. accounts are extended into their proper columns and footed and forwarded from page to page until the end of the month, and then posted. 2. The advantages of this plan are — 1st. A saving of space in the Ledger. 2d. In posting, instead of one or more entries daily to Cash and Mdse., there is but one entry each month. 3d. The work of checking is reduced with the posting, 4th. Reducing the work reduces the liability to error. The advantages can only be perfectly understood by the learner when he com- pares the Cash and Mdse. accounts of Set IV, p. 168, with the Cash and Mdse. accounts of Set III, pp. 123, 124. 3. This book is made up from the Auxiliaries in much the same manner as the Day Book in Set III. Read T[ 2, p. 104. The only difference is that here the learner makes his Journal entry direct from the Auxiliary Book and is re- quired to change his transfer marks of D. B. to Journal. To become familiar with this change, the learner may copy two days* business in his Journal. While doing this he must follow directions in \ 3, p. 104. In making entries on this book, care must be taken to extend the debits and credits to Cash or Mdse. into their proper columns. Make it a rule to examine all your exten- sions before attempting to foot and forward the columns. 4. Rule a sheet of paper to the same pattern as your Journal ; then foot each column, and place the footing in the corresponding column on the loose sheet, then bring the footings into tlie sundries column, in the same order as in Text Book, and prove them. 5. Read remarks on Auxiliaries, pp. 75, 76, 77, and before posting compare a month of your printed Journal with the Ledger. 154 Drs, NEW YORK, July 1, 1875. 1 €rs. Mdse. 22 Cash. 9013 30 5000 509 320 5000 1415 150 115 467 126 14018 Cash Dr. To Sunda. ---.-_- To Stock, ^ C. B. 1, " Mdse. '' 1, // Sands. To Cash, Buildings and Fixtures, - - - C. B. 1, Flasks, " 1, Pattern, " 1, Mdse. - - - - ^^ - - - - " 1, Expense, -------- " 1, // Buildings and Fixtures, - - - - Dr. To Bills Payable, J 1, : 10 -- B. M. Worthington, ----- Dr. To Mdse. S. B. 1, // Sunds. To-------- Cash, Flasks, C. B. 1, Patterns, --- " 1, Expense, -------- " l, =.== 20 Sunds. To Mdse. D. L. Musselman, - - - - - S. B. 1, Cash, " 1, // Sunds. To-------- Cash, Foundry Wages, - - - - - -C.B.I, Flasks, " 1, Patterns, " 1, Expense, -------- " 1, Amounts forward, -------- Cash, Mdse. ------------ Proof, _____ * Require the pupil to give initials and page of tho Auxiliary Book, as we do. 155 9000 5000 14000 7499 1580 23079 Cash. Mdsb. 13 30 5856 1415 25 732 10 151 911 1580 Drs. July 31, 1875. Crs, Mdse. Cash. 14018 97 448 5 i7 50 168 167 2850 19968 9038 22 Am'ts bro't forward, Sunds. Dr, To - - Robt. C. Spencer, H. W. Flickinger, - B. M. Worthington, Mdse. 5. B. 2, Sunds. Dr. To Cash, Foundry Wages, C. B. 1, Patterns, " 1, Expense, " 1, Bills Rec. SI, - - ■ To D. L. Masselman, Dr. D. L. Musselman, Dr. To Interest for am't added in 60 day note, ^Buildings and Fixtures, To - -Sunds. To A. Stetler & Son for Cupola and Boiler, per contract, July 1, - - - To B. F. Sturtevant for bill of Blower, June 25, Flask, .... - Dr. To Fernald & Sise for bill of fittings, July 2, Amounts forward, Cash, Mdse, - Proof, "We keep no I. B. Read t 4, p. 79. The learner must not let any foot- notes escape his notice. 156 14000 168 2400 450 17034 8405 10 3588147 Cash. 7499 10 Mdsb. 158017 2008 30 906 Drs. July 31, 1875. Crs, MrsE. 22 95 9038 30 Cash. 19968 40 5700 2570S 03 30; 34863 Am'ts bro't forward, - - D. L. Musselman, Dr. To Mdse. for error in traosferring bill of July 20. See Jour. 1 and S. B. 1, - n Metal account, Dr. ToJ. W. PopeforbillJulyl, - - - - do. '' '^ 10, - - - - , tf Mdse. Dr. To Sunds. To McQuiston & Co. for bill of Galva- nizing, July 20, To Sam'l G. B. Cook for bill of Moulders' riddles, July 20, - Cash, Mdse. Proof, - An error in a transfer can be cor- rected in this way. If the learner has not copied the error on Jour., p. 155, he must not make this entry. ^ Post the Cash and Mdse. debits and credits. The amounts are not to be car- ried forward to the next page. 157 17034 76 4500 1200 67 8405 101 3628;47j 34863 83 Cash. 840510 Mdsb. 3588 47 4 JDrs, Aug. 2, 1875. Crs. Mdsb. Cash, 298 50 800 35 1401 10 1136 50 30 75 1415 ^00 1158 313 81 2201 912^ SundB. To^------- Mdse. B. F. Moore, ------- S. B. 3, D. Clinton Hicks, ----- " 3, // Sunds. To-------- Cash, Mdse. ---- C. B. 1, Expense, ----------- // Cash, ---------- Dr. To B. F. Moore, - - - - - - C. B. 1, /f Bills Receivable, jf 2, ----- Dr. To B. M. Worthington, // Buildings & Fixtures, ----- Dr. To Bills Payable, j);2, === 10 == Mdse, Dr. ----------- To R. C. Spencer for— 3.50 3.75 1 Sink, m. 20/28 18/30 $7.25 Less40^ - 2.90 Reported short in bill July 31, - - - - // Sunds. To- Mdse. D. L. Musselman, - - - - - S. B. 3, Ex. Mfg. Co, " 3, R, C, Spencer, ------ " 3, ff . 'Sunds. To- - - Bills Receivable. $2, Cash, ----_-___ c. B. 1, Interest, for amount deducted, - - - - Amounts forward, -------- Cash, Mdse. ------------ Proof, _-_-_ ^ Post this opposite Bills Receivable, 32. See Bills Rec. acc't. 158 1415 2400 1415 6034 373 2719 9127 Cash. 373 50 1166 50 1552 9E Brs. Aug. 10, 1875. 5 Crs, Mdse. Cash. 2201 450 50 6623: &40 20 9T8 15 1050 450 755 84 1090324 2651] 60 _302|85 13857 69 Am'ts bro't forward, - - - // . Sunds. To Cash, Foundry Wages, C. B. 1, Expense, " 1, Flasks, " 1, rr Bills Eeceivable, #3, Dr. To R. C. Spencer, . 20 Sunds. To Mdse. Jackson Cagle, S. B. 4, Jno. R. McGinley, "4, rr B. F. Sturtevant, Dr. To Cash, C. B. 1, ff . Cash, Dr. To Ex, Mfg. Co. C. B. 1, // 'Bills Receivable, To - - - - Sunds. ToH. W. FlickingerforS4, do. " Jf5, " B. F. Moore " J6, ' 31 — Snnds. To Mdse. Geo. J. Luckey, S. B. 4, J. J. DeHan, "4, // Interest, Dr. To B. F. Moore for amount allowed on advance payment, Amounts forward, Cash, Mdse, - Proof, ^ See Bills Receivable acc't in Ledger before posting. 169 6034 978 450 185 320 50 85 8235 30 1718 50 13857 69 Cash. Mdse. 373 50 895 450 6 J>t\ Aug. 31, 1875. Crs. Mdsb. Cash. 2651 2473 1125 26 34 1050 13061 04 6250 85 _302 85 19614 74 Am'ts bro't forward, Sunds. To Bills Payable, J 3, Cash for net proceeds, - - Interest for discount, - - Sunds. To D. L. Musselman, Cash, Interest— discount allowed. C. B. 1, Sunds. To Cash, Foundry Wages, C. B. 1, Patterns, " 1, Flasks, " 1, Expense, " 1, Ex. Mfg. Co. " 1, Metal, Dr. To Loomis & Collord for bill of Metal, Aug. 10, ■Cash, Mdse. Proof, See Note 2, p. 157. 8235 2500 1160 1050 12946 05 2764 3903 19614 Cash. 1718 50 1046 Mdse. 160 Di's, Sept. 1, 1875. Crs. Mdse. Cash. 235 18 5000 282 13 5700 589 675 13109 18 235 20 Bills Payable, J 1, To - - - - Sunds. To Cash, C. B. 2, " Bills Payable, $4, for new note in part renewal, @ GO days, ------ // Sunds. To-------- Mdse. D. L. MuHSclman, - - - - - S. B. 5, D. K. Lillibridge, ----- " 5, ff . Sunds. To-------- Cash, Mdse. --------- C. B. 2, Interest, -------- " 2, // J. W. Pope, -------- Dr. To Bills Payable, It 5, ------- // Loomis & CoUord, To - - - - Sunds. To B. M. Worthincrton, for draft on liim July 31, @ 60 days, ------ To Interest for am't allowed for advance payment, --------- - lO Sunds. To-------- Mdse. John Carnell, ------- S. B. 5, Cash, --------- '' 5, // Sunds. To Cash, Foundry Wages, - - - - - - C. B. 2, Flasks, --------- " 2, Patterns, -------- " 2, Expense, -------- " 2, Sam'l G. B. Cook, " 2, Amounts forward, -------- Cash, Mdse. ------.^----- Proof, 161 2500 5700 3596 977 Cash. 2500 28413 20 848 8 Drs. Sept. 10, 1875. Crs, Mdsb. Cash. 18 37 975 84 253 13109 : 50 21 1131 34 16253 1736 235 18225 Am'ts bro't forward. Sunds. To Jno. R. McGinley, - - - - Bills Receivable, 57, ^Profit & Loss for amount lost by com- promise, - 20 - Sunds. To Mdse. J. J. DeHan, S. B. 6, Cash, " 6, // Sunds. To Bills Receivable, Jf 3, - - - - Cash, Interest for amount of discount, - - - // Cash Dr. To Sunds. ToJ. J. DeHan, C. B. 2, '' Bills Receivable, $ 5, - - ''2, // Sunds. To Cash, Foundry Wages, C. B. 2, Patterns, ^ - " 2, Flasks, " 2, Expense, " 2, D. L. Musselman, " 2, /f D. L. Musselman, Dr. To Interest for amount credited Aug. 31, and now charged back, Amounts forward, Cash, Mdse, - Proof, ^ We debit Profit and Loss, as it is not an expense. 162 8789 05 1050 978 185 11106 5648 74 ^71:13 18225 90 Cash. 3596 20 2052 Mdse, 977 13T 494 JDrs, Sept. 30, 1875. 9 Crs, Mdse. I 82 Cash. 173G 92 29 16253 98 855 969 90 18171 1905 _445 20522 Am'ts bro't forward, - Sunds. To Mdge. R. C. Spencer, S. B. 6, H. W. Flickiuger, "6, // Cash, - - - - Dr. To Bills Receivable, J 1, rr Expense, Dr, To Cash, // 'Interest, Dr. To J. J. DcHan for discount allowed on bill Aug. 31, tr Mdse. Dr. To American Galvanizing Co. for bill of Work, Sept. 20, ^Cash, Mdse. Proof, ^ This should have been credited to DeHan when we received a return from the draft drawn on him. See Note 3, p. 51. The book-keeper should know why the draft was for $68.71 Avhen the bill was $70.84, and make the proper entry to credit him with the difference. =^ See Note 2, p. 157. 163 11106 03 108 29 2 13 210 82 11487:27 5739 24 20522 24 Cash. 564874 90 50 Mdse. 1471 13 1824 60 1 STOCK ACCOUNT. Cr 1875. iSept 30 To Balance, Note. Eead p. 120 for directions. 9 12630 85 1875. July Sept. Oct. 1 30 1 12630 85 By Cash, - - - " Profit & Loss, f . By Bal. bro't down. 9000 3630 85 13630 85 12630 85 BUILDINGS AND FIXTURES. 1875. July Aug. Oct. To Cash, - - - " Bills Pay. fil, " Sunds. - - - " Bills Pay. S3, To Bal. bro't down, 1 2 4 5000 5000 3850 3400 1875. 1 15350 15350 By Balance, - /. 15250 15350 This is a property acconnt, and shows what Buildinjxs and Fixtures have cost up to time of closing. Any additional cost after closing can be posted under the bal. bro't down. See p. 72. EXPENSE ACCOUNT. 1875. July 1 . CLINTON City HICKS. Cr. 1875. Aug. 2 ToMdse. - - - 4 30 EXCELSIOR St. i.ouis, Mo. MFG. CO. 1875. Aug. To Mdse. " Casli, - 313 137 450 1875, Aug. 20 By Casli, 450 450 JACKSON City. CAGLE. 1875. Aug. 20 To Mdse. - - 5 15 JOHN K. FittsburgJi, Pa. McGINLEY. 1875, Aug. 20 To Mdse. 1050 1875. Sept. 10 By Sunds, 1050 GEORGE J. Pittsbiirah, Pa. L.UCKEY. 1875. Aug. 31 To Mdse. 48 60 170 Dr, «T. J. Cincinnati, O. DEHAN, 8 Cv. 1875. Aug. Sept. To Mdse. " do. 75.47 70.84 1875. 5 70 84 Sept. 20 8 4 63 30 By Cash, " Discount, LOOMIS & Pittsburgh, Pa. COLLORD. 1875, Sept. To Sunds. 589 05 1875. Aug; 10 By Metal, 1050. 589.05 1050 D. K. Manchester, N. n. lilLLIBRIDGE. 1875. Sept. 1 To Mdse. . - - 7 282 13 JOHN Tro^j, K. T. CAKNELL. 1875. Sept. 10 To Mdse. 675 AMERICAN GAI.VANIZING CO. 1875. Sept. 20 By Mdse. 171 210 9 Dr. PROFIT AND LOSS. Cr 1875. Sept. 10 " 30 To J. R. McGinley, " Expense, - 1 " Interest, - f. " Stock, 13J6-15 1 1875. 8 525 Sept. 30 1 759 60 5 61 55 1 3630 4977 85 By Mdse. 4977 4977 See p. 48. BALANCE ACCOUNT. 1875. Sept. 30 D, L.Musselman,f R. C. Spencer, - ■ H. W. Flickinger, - D. Clinton Hicks, Jackson Cagle, George J. Luckey. J. J. DeHan, - D. R. Lillibridge, John Carnell, - Total book acc'ts, Bills Receivable, Buildings & Fixt. Flasks, - - - Patterns, - - Cash,- - - - Mdse. - - - 28884.32 16254.07 1166 936 982 30 15 48 4 282 675 4140 1095 15250 828 625 285 6660 28884 60 92 1875. Sept, 30 A. Stetler&Son, f. Fernald & Sise, McQuiston & Co. Loomis & Collord Am. Galv. Co, - Total book acc'ts, - Bills Payable, - - Stock, - - - 2400 14 67 460 210 3154 13100 12630 28884 92 See p. 49. Note. For the convenience of the book-keeper, when making out his balance sheet, all per- sonal accounts should be taken to this account firpt, and a footing line drawn on each side. Then add them up, and insert amount and explanation as above. See Balance Sheet, pp. 174, 175. The amounts on the Balance Sheet should check with the amounts in the Balance Acc't. 172 SET IV.— DOUBLE ENTRY BOOK-KEEPING. EXERCISES IN BUSINESS FORMS. 1. After writing the answers to questions on p. 50, make out the following forms. Write bills on bill paper, and all other forms on cap or letter paper. We give forms on pages 134, 135, 136, 137, 138, and 139. 2. When the Journal Entry does not give particulars for the required form, the student can obtain them in the original entry. See Jour, entry, July 1, p. 155. See Jour, entry, July 10, p. 155. See Jour, entry, July 20, p. 155. See Jour, entry, July 31, p. 156. See Jour, entry, July 31, p. 156. Write note given to Wilhelm & Co. for $5000. Write bill for goods Bold B. M. Worthington. Write bill for goods sold D. L. Musselman. Write note received from D. L. Musselman. Write bin for goods sold R. C. Spencer. Write letter of acknowledgment to B. M. Worthington. See Jour, entry, Aug. 2, p. 158. Write letter of acknowledgment to B. F. Moore. See Jour, entry, Aug. 2, p. 158. Write bill for goods sold B. F. Moore. See Jour, entry, Aug. 2, p. 158. Write notes received from H. W. Flickinger. See Jour, entry, Aug. 20, p. 159, Write letter to B. F. Sturtevant to enclose Draft for $450. See Jour, entry, Aug. 20, p. 159. Write letter that Sturtevant must send to acknowledge the receipt of the $450. See Jour, entry, Aug. 20, p. 159. Write letter of acknowledgment to Ex. Mfg. Co. See Jour, entry, Aug. 20, p. 159. Write receipt and duplicate which Standard Bolt. Co. must give for the payment yon account of the Ex. Mfg. Co. See Jcur. entry, Aug. 31, p. 160, Write draft on B. M. Worthington. See Jour, entry, Sept. 1, p. 161. Write Bills Payable, $4, See Jour, entry, Sept. 1, p. 161. Write receipt J. W. Pope mnst give. See Jdur. entry, Sept. 1, p. 161. Write J. R. McGinley's note. See Jour, entiy, Sept. 10, p. 162. Write bill for goods sold W. B. Richards. See Jour, entry, Sept. 20, p. 162. Form 1. Form 8. Form 8. Form 1. Form 8. Form 21. Form 21. Form 8. Form 2. Form 20. Form 21. Form 21. make on Form 15. Form 6. Form 1. Form 14. Form 2. Form 9. 173 Dr BAL.ANCE SHEET OF EFFECTS. Amount due by Sundry persons on book acc'ts, - - - " " "• ■ " notes, Cost of Buildings and Fixtures, " of Flasks, " of Patterns, Cash on hand, Mdse. on hand, --- 1875. Sept. 1875. Sept. 30 1875. Sept. 30 The amounts here and on the opposite side are in the same order as in the Balance account. PROFIT AND LOSS LOSSES. Incidental losses per account, Amount of expenses to date, ---------- Loss on Interest, Gain on 3 mouths business to my Cr. in Stock Account, This abstract gives all the losses and gains in compact form. MERCHANDISE Cost of Incidental purchases per Mdse. account, - - - - p. 5, " Metal " " account, p. 2, " Foundry Labor, per account, p. 3, Gain on Mdse. sales for 3 months, - JVote. No form of Balance Sheet that we have seen is so simple and so easily understood as the one presented above. 174 15250 828 80 625 4140 1095 16703 — 525 759 61 3630 60 55 85 4977 = 866 6750 4805 4977 17488 17 . . . . . Sept. 30, 1875. LIABILITIES. Amount due to Sundry persons on book acc'ts, " " " " notes, - - • " of my capital July 1, 1875, ■ " " gam now added, " " capital at this date, Cr 1875. Sept. 30 1875. Sept. 30 1875. Sept. 9000 3630 3154 07 13100 126301 03 The learner can insert his own name in the blank space in headiu": line above. ACCOUNT. GAINS. Gain on Mdse. as per statement below, ACCOUNT. Sales to date per Mdse. account, MdBC. on hand at this date, - 175 4977 4977 p. 5, mm 17488 SET IV.— DOUBLE ENTRY BOOK-KEEPING. iT. B. Direct tlie learner to journalize and post the following transactions on loose slieets of paper ; take off a proof sheet, close the Ledger and make out a balance sheet. See Form, pp. 174, 175. Oct. 3. Commenced business with a cash capital of ----- ^5000. " P'd cash for books and stationary for office use, - - - . 30. " P'd cash for 1 months rent of store in advance, - - - - 100. " Bo't of P. Duff & Sons, on %, 500 bbls. Flour, @ $8, - - 4000. 3. Bo't of W. H. Hunker, for cash, 500 bu. Wheat, @ $1.50, - 750. 4. Sold J. H. Hampton, on %, 200 bbls. Flour, @ $10, - - - 2000. 5. Sold C. L. Magee, on %, 100 bu. Wheat, @ $1.70, - - - 170. 6. Rec'd J. H. Hampton's note, @ 30 days, in full, - - - - 2000. " P'd cash for State Mercantile license, ------- 13. 7. SoldR. B.Brown, on %, 400 bu. Wheat, @ $1.75, - - - 700. 9. Gave P. Duff & Sons, on ^, J. H. Hampton's note for - - 2000. 10. Sold M. H. Houseman, on %, 100 bbls. Flour, @ $10, - - 1000. 11. Gave P. Duff & Sons m.y order on C. L. Magee for - - - 170. 12. B. B. Brown has failed, and I settle with him for 50/' on the dollar of the amount due me. Rec'd S. Kilgore's note, @ 30 days, for the amount - $350 The remainder is lost, - - _ 350 700. 13. Bo't of W. F. Lang & Co., on %, 100 doz. Brooms, @ $2.00, - 200. 14. Bo't of Union Manufacturing Co. 100 doz. Globe Wash- boards, @ $2.50, 250. 16. P'd cash for freight on Washboards, - - - 12.50 " " " " donation to sufferers by explosion, ... - 25. 17. Sold Willis McCook, on %, 100 bbls. Flour, @ $10, - - - 1000. 18. P'd cash for clerk hire, 50. " " " " postage stamps, - 5. " Sold P. Reymer, on %, 50 doz. Brooms, @ $2.50, - - - - 125. 19 Sold Geo. I. Stahl, on ^, 50 doz. Washboards, @ $3, - - 150. " jyferchandise on ha7id, ^WS^,25, Afiswer. Net gain, $391.75. Net capital, $5391.75. 176 COMMERCIAL CALCULATIONS. ADDITION. We desire to urge upon young accountants the necessity of frequent exercises in adding long columns, to secure proficiency. Many trouble- some errors result from a want of accuracy. These can be avoided only by constant practice. An improved method of addition is illustrated by the following figures — 2348.75 2.1 8651.68 2A 1031.40 2.3 796.32 3.1 9084.26 1.9 21912.41 21 We commend the method of the above illustration as an improvement that will save adding several columns when the amount to be carried for- ward has been forgotten, or as a means of testing a column by itself without the labor of going over those that precede it: To explain — the amount of the first cent column is 2.1, that of the next, 2.4. Draw a hne to separate the dollars and cents. The amounts of the next columns, in their order, are 2.2, 3.1, 1.9, and the last 21. The right hand figures and the last left hand figure are the product. The left hand figures, ex- cept the last one, are the amounts to be carried to the columns to which they belong. IMPROVED METHOD OF FINDING INTEREST FOR MONTHS AND DAYS. Rule 1. To find the interest at six per cent, for months. Remove the decimal point two places to the left in the principal, and mul- tiply by half the number of months. Rule 2. To find the interest at six per cent, for days. For 60 days, point off two places in the principal, and it becomes the in- terest. For 6 days, point off three places in the principal, and it becomes the M 177 COMMERCIAL CALCULATIONS. interest. For 5, 10, 15, 20, and 30 days, take aliquot parts of the product, when found for 60 days. For 0+^*^^ Tmml-»prs TTmlt,ir>lv fliR in+.pT'PK+. fnr (\ rlnvH V>v i the given number of days. ;200 for 4 months 2.00 x 2 = $ 8.00 600 ' ' 5 " 6.00 x2| — 15. 750 ' ' 3 " 7.50 xli - 11.25 500 ' ' 9 " 5.00 x4i = 22.50 811 ' ' IS " 8.11 x9 == 72.99 100 ' ' 60 days 1.00 = 1. 150 ' ' 30 " 1.50 X i = .75 300 ' ' 20 " 3.00 X k = 1. 800 ' ' 15 u 8.00 X \ = 2. 900 ' * 10 <■' 9.00 X A = 1.50 100 " 6 '» .100 = .10 200 ' ' 12 " .200x2 = .40 700 ' ' 24 " .700x4 = 2.80 800 ' ' 11 " .800x1,1 = 1.46 1200 ' ' 13 " 1.200x21 = 2.60 1. Required the interesi 2. " " 5. 6. " (i ly (I tt " 8. " " II n 'C C( " 10. il <^ (I It " 12. " " " 13. " " " lU. " 15. Teachers should furnish numerous examples to make the pupil perfectly familiar with the working of the rules. We consider this the shortest and best method in use. SIMPLE EQUATIONS. Eule. Multiply the amount of each sale by the number of days that inter- vene between its maturity and that of the first amount due. Divide the sum of these products by the total amount of sales ; the quotient is the equated time counted forward from the day upon which the first amount falls due, JSfote. Equations are fully explained in all arithmetics, and we do not deem it necessary to give them extended notice here ; therefore we illustrate the rule by one example only. Bx. 1. Sold for account of Proctor & Gamble, Cincinnati, Ohio. June 1, 20 bbls. Lard Oil, 900 galls. @ $1.00, % 900. for Cash. " 10, 10 " " 450 " @ 1.00, 450. on 30 days. " 20, 30 " " 1350 " @ .90, 1215. " GO " " 30, 10 " « 450 " @ .90, 405. " 90 " Required the equated time when the total amount of the sales will fall due. • 178 COMMERCIAL CALCULATIONS. Solution of preceding example. Date of sale, Terms, Due, Am't, No. of days, June 1, Cash, June 1, $ 900. " 10, 30 days, Julj 10, 450. X 39 = 17,550 *' 20, 60 " Aug. 19, 1315. X 79 = 95,985 " 30, 90 « Sept. 28, 405. X 119 = 48,195 3970. )161,780 forward from June 1, tlie first amount due. Answer. July 35. COMPOUND EQUATIONS. For ascertaining the average day of maturity on accounts composed of debits and credits of various dates and amounts. Rule. Find the equated time of each side of the account by a simple equation ; then multiply the lesser side by the time that intervenes between these two equations, and divide the product by the balance of the account ; the quotient is the time to count back or forward from the date on which the greater side of the equation falls due. If the balance is on the side of the earliest equation, count hack from that date ; but if it be on the side of the latest equation, count forward from that date. Example 1. Sold H. J. Lynch — April 1, Mdse. on 4 mos. time, - $400. " 20, " 4 " " - 350. May 1, " 4 " " - 500. Cr. May 15, By Cash on acc't, - - - 200. June 1, " « " ... 100. " 18, " " " ... 150. Required the day on which the balance of his acc't will fall due by average. Solution. Dr. side of account. Date of sale, Terms, Due, Am't, Days, Product, April 1, 4 mos. Aug. 1, $ 400 " 20, 4 " " 20, 350 X 19 = 6,650 May 1, 4 " Sept. 1, _500 x 31 = 15,500 1350 )23,150 {V7-^is days to count When the fraction of a day is half, or over, it is counted 179 COMMERCIAL CALCULATIONS. as a whole one, hence we count 18 days from Aug. 1, wliidi gives Aug. 19 as the maturity of the Dr. side of the account. Cr. side of acc't. Date, Due, Am't, Days, Product, May 15, May 15, $200 June 1, June 1, 100 x 17 = 1700 « 18, " 18, J50 X 34 = 5100 450 ) 6800 (15 days to count from May 15, which gives May 80 as the maturity of the Cr. side of the account. The lesser side ($450) multiplied by the number of days (81) intervening between May 30 and Aug. 19 = 36450 -J- 800 (the balance) = ^^yg, or 46 days, as is counted when the fraction exceeds a half. The balance being on the Dr. side, and the Dr. side being the latest date, Aug. 19, we count forward from that date 46 days and obtain the answer, Oct. 4. STORAGE EQUATIONS. To ascertain the average time goods are subject to charg3 for storage wlien irregular amounts have been put in at various times. Bule. Multiply the number of packages by the number of days they have been in store. Divide the product by 30, and the quotient will be the number of packages subject to charge for one month's storage; or if part have been taken out, make the same equation for amount taken out, deduct the sura of it from the sum of the stored product and divide the remainder by 30. The quo- tient will be the number of packages on which to charge one month's storage. EXERCISES IN OPENING BOOKS BY DOUBLE ENTRY. Ex. 1. I begin business with cash on hand, |2000. Mdse on hand, $1000. I hold George Fences note for $500, and own house and lot No, 119 Chambers Street, worth $10000. Required the Journal entry for opening my books. Ex. 2. Commenced business with cash on hand, $2500. Stock in Market National Bank, $5000. Note of John Dalzell, $1500. Mdse. on hand, $3000. I owe on my note to M. Hay, $500. I owe W. H. Hamilton on book acc't, $300. Required the Journal entry to open my books. 180 COMMERCIAL CALCULATIONS. Ex. 3. H. J. Lyncli and E. F. Armstrong begin business under tlie firm name of H. J. Lyncli & Co. Mr. Lyncli pays in casli $20000. Mr. Armstrong pays in cash $5000. Required tlie opening Journal entry. Ex. 4. James Johnston and John R. McGinley form a co-partnersliip for tlie purpose of carrying on tlie Dry Goods business. McGinley pays in cash, $10000, and owes on his note to M. McMillan $500. Johnston pays in cash $5000, and owes T. W. Myers on book acc't $300. The firm assumes and agrees to pay the liabilities of each partner. Required the Journal entry for opening the firm's books. Ex. 5. Jas. Stevenson and Wm. McCance commence business with the fol- lowing Assets and Liabilities. Stevenson pays in cash $4000 ; Mdse., $3000. He owes on his individual notes $400 ; to H. Rea on book acc't, $1 00. McCanco pays in cash $5000 ; notes due him, $2000 ; Mdse., $3000. He owes on his individual notes $500. The firm assumes and agrees to pay the debts of each partner. Required the Journal entry to open the firm's books. Ex. G. N. Doty and G. W. Dean begin business with the following assets — Doty pays in cash $5000 ; R. S. Waring's note for $5000. Dean pays in cash $3000 ; N. P. Reed's note for $7000. It is agreed by each to deduct 4 months interest on the notes paid in as capital. Required the Journal ejatry to open the books. Ex. 7. Josiah King and Simon Johnson form a co-partnership for the pur- pose of carrying on the Drug business. King pays in, as capital, cash $20000. Johnson contributes the stock and fixtures, owned by him, as follows — Mdse. per inventory, taken by appraisers, - - - - $30000 Store furniture and fixtures, including bottles, &c. - 5000 Two-horse wagon and team, _-_..-_- 500 Cash in drawer, _------------ 150 Johnson owes debts which the firm assumes, viz. : To P. Duff & Sons on book acc't, $150 " " « on note, 500 " To Colgate & Co. on book acc't, - - - - 1000 " City Treasurer for last year's business tax, 150 Required the Journal entry to open the books for the new firm. 181 COMMEKCIAL CALCULATIONS. EXERCISES IN CLOSING THE LEDGER. Example 1. The following accounts are open on my Ledger — Stock Acc't is - - - Dr. $1300 Cr. $4500 Mdse. " 7600 " 8100 Mdse. on liand, per inventory, - - - $1375 Cash, Dr. 4200 Cr. 2400 Bills Receivable, - - " 2950 " 800 Bills Payable, - - - " 500 " 1000 Profit & Loss, - - - " 1150 " 900 On paper, ruled the same as a Ledger, write out a specification showing the accounts debited and credited as above. Open a Balance account and close all of the accounts, as directed by rules for closing, p. 41. Then reopen the Ledger by bringing down the balances to continue the business. £Jx. 2. J. R. McGinley and James Craven, partners, at the close of a year's business find their accounts as follows — J. R. McGinley, - - Dr. % 600 Cr. $4800 James Craven, - - " 500 " 4500 Profit & Loss, - - " 400 « 2200 Balance, ... - « 11500 " 1500 Partners are equal in gain or loss. Required the Ledger specification showing the accounts closed and balances bronght down. Ex. 3. H. D. Beerhman and Samuel Matthews desiring to close their part- nership books, find their acc'ts stand as follows— H. D. Beerhman's acc't, Dr. $ 1350 Cr. $7500 Samuel Matthew's " Expense, Interest, Commission, Profit k Loss, Balance, 1175 " 3200 800 « 000 300 " 500 000 " 2000 700 " 2000 11000 " 125 H. D. Beerhman has f and Samuel Matthews f interest in the gain or loss. Required the Ledger specification showing all the accounts closed and bal- ances bronght down. 182 COMMERCIAL CALCULATIONS. PARTNERSHIP SETTLEMENTS. Division of profits according to amount of capital invested. Bide by proportion. As the wliole capital is to each partner's capital, so is the whole gain to each partner's share of the gain ; i. e., multiply the whole gain by each partner's capital and divide the product by the whole capital. The result is each partner's share of the gain. Ex. 1. M. Bailey, W. McKnight, and R. P. Duff, partners in business, have a total capital of $10000, and the profits are to be divided in proportion to the amount of capital invested by each. M. Bailey paid in $4000 ; W. McKnight $3500 ; and R. P. Duff $2500. At the expiration of one year they have gained $3300. Required the division of this profit among the partners. Solution. Whole capital, Bailey's capital, Whole gain, Bailey's gain, 10000 Whole capital, 10000 Whole capital, 10000 4000 : : 3300 McKnight's capital. Whole gain, 3500 :: 3300 Duflf's capital, Whole gain, 2500 : : 3300 1320 McKnight's gain, 1155 Duff's gain, Ex. 2. J. W. Houston pays in to the firm, as capital, $5000 ; Wm. Young pays in $3300 ; Wm. McKown pays in $3700 ; making a total capital of $11000. The profits amount to $4100, and aVe to be divided in proportion to the amount of capital paid in by each partner. Required the division of this profit among the partners. Answer. J. W. Houston's gain, $1863.64; Wm. Young's gain, $1230; Wm. McKown's gain, 1006.36. PARTNERSHIP SETTLEMENTS. Adjustment of interest where one partner has drawn out more than an- other. Rule. Find the balance of interest due each partner ; add together these various balances and divide the sum by the number of partners ; the quotient is the average amount of interest due to each partner, provided they were equally interested. Debit a partner for whatever amount he is below the aver- age, and credit if above the average. Note. The debits and credits in Journal entry must be equal. Ex. 1. Chas. P. Duff paid in as capital to the firm of Duff Bros. $20,000, 183 COMMEECIAL CALCULATIONS. for one year, and in six months drew out $5000. Wm. H. Duff paid into tlie firm, as capital, $20000, for one year, and in six months drew out $2000. Required the amount of interest Chas. P. Duff will owe W. H. Duff to equalize their accounts. Write the necessary Journal entry. Solution. C. P. Duff paid in for 1 year $20000 @,Q% - - - - 1200 '' drew out " 6 mos. 5000 &&% - - - - J50 Bal. of interest due him, 1050 W. H. Duff paid in for 1 year $20000 @,Qfc - - 1200 " drew out " 6 mos. 2000 (^6% - - 60 Bal. of interest due him, 1140 Total interest due both, 2)2190 If equally interested there would be due each, - - - 1095 The am't due C. P. Duff is only 1050 He is below the average, 45 W. H. Duff's half of the total interest is - - - 1095 Interest actually due him is 1140 He is above the average, 45 To equalize the interests, C. P. Duff owes W. H. Duff $45, and the Journal entry to adjust the same is C. P. Duff, Dr. 45 ToW.H. Duff, 45 Tliis method avoids the necessity of passing the interest through the Inter- est or Profit & Loss account. PARTNERSHIP SETTLEMENTS BY SINGLE ENTRY. Hule. All debits on the Ledger are effects, and all credits are liabilities. Make up a list of these, and if the former exceed the latter, then the difference is gain, and must be credited to stock or the partner's accounts. If the liabili- ties are the greatest in amount, then the difference is loss, and stock or the partner's accounts must be debited for the amount. Mc. 1. M. Bailey keeps his books by Single Entry, and his accounts stand as follows : Stock acc't is Dr. $100 ; Cr. $2000. Jas. Lynn's acc't is Dr. $750 ; Cr. $50. George Miller's acc't is Dr. $500. Wm. McKown's acc't is Cr. $200. Cash on hand, $1000. Mdse. on hand, $500. Required the net profit to date and the balance due as capital. Make a Ledger specification showing the ac- counts closed and reopened by Double Entry. Solution. After opening a Mdse. and Cash account, the accounts on M. Bailey's Ledger will stand thus — 184 COMMEKCIAL CALCULATIONS. STOCK. JAMES LYNN. GEO. MILLER. Sunds. - 100 Sunds. - 2000 Sunds. - 750; Sunds. - 50 Sunds. WM. McKOWN. Sunds. CASH. 500 MDSE. 200 On hand, 1000 The list of Effects and Liabilities is made up from the foregoing statement, according to the rule, and should be entered on the D. B. Seep. 12. The effects exceed the liabilities $600, which amount represents a gain and must be carried to the Cr. of Stock acc't, after which we proceed to close the accounts, as follows — On hand, 500 Effects. Liabili- ties. Stock - - - - 100 750 500 1000 500 2850 2250 600 2000 50 2C0 2250 Jas. Lynn, - - - Geo. Miller, - - Wm. McKown, - Cash, Mdse.- Total Effects, - - " Liabilities, " Gain, - - STOCK. JAS. LYNN. GEO. MILLER. Sunds. - 100 Bal. "A ^500 Sunds. - 2000 Sunds. - 750 Net gain, 600 BaL - - 2500 Bal. WM. McKOWN. 750 -"too CASH. Sunds. - 50 Sunds. - 500 Balance. 700 _ _ 750 Bal. - - 500 Balance, 500 MDSE. Balance^ ^00 ■9~ Sunds. - 200 On hand, 1000 Bal. - - 200 Bal - - 1000 BALANCE ACCT. Balance, 1000 On hand, 500 BaL - - 500 Balance, 500 J. Lynn, G. Miller, 500 Stock n/o 2500 Cash, - - 1000 Mdse. 500 2700 This closes the Single Entry Ledger and re- opens it as Double Entry. 2700 Answer. Net profit, - - Net capital, - - $ 600 185 COMMERCIAL CALCULATIONS. Ex. 2. Henderson Mclntyre and James Dickson, partners, keep their books by Single Entry. The open accounts are as follows : H. Mclntyre's % , Dr. $300; Cr. $2100. James Dickson's %, Dr. $350; Cr. $2500. Cash on hand, $1800. Mdse. on hand, $2600. James Bell owes on acc't, $400. Required the Ledger specification showing the transformation from Single to Double Entry ; also the gain or loss and the amount due each partner. Anmcr. Net gain, $850. P"« ?. Mclntyre, $2235. (Due J. Dickson, 2575. ADJUSTMENT AND CLOSING OF DERANGED DOUBLE ENTRY BOOKS. Mule, (.^lose all accounts representing gain or loss into Profit and Loss. Make up a complete list of EiFects and Liabilities : all debits being effects, and all credits liabilities. If the effects exceed the liabilities the difference is a gain, and must be carried to the Cr. side of Profit and Loss. If the liabilities are the largest in amount, then the difference is a loss and is carried to the Dr. side of Profit and Loss. This will make the debits and credits of the Ledger equal in amount. Close Profit and Loss into Stock or partner's accounts in the regular way. Ex. 1. My Ledger being out of balance {i. c, debits and credits unequal in amount), I desire to adjust the same and close all the accounts now open to show my gain or loss, and reopen my Ledger in perfect balance. The open accounts are as follows : Stock, Dr. $200 ; Cr. $3000. Expense % Dr. $150. Mdse. on hand, $2500. Cash on hand, $500. Required the specification showing the Ledger closed and reopened with debits and credits equal in amount. What is my net gain and what is the amount of my capital ? An^er. Net gain, $200. Net capital, $3000. Ex. 2. Wm. A. Miller and I. N. Stephenson, partners in business, each being equally interested in the gain or loss, kept their books by Double Entry, and fijid that the debits and credits on the Ledger are not equal in amount. The open accounts are Wm. A. Miller, Dr. $750 ; Cr. $5000. I. N. Stephenson, Dr. $600 ; Cr. $4900. Expense, Dr. $400. Profit and Loss, Dr. $200 ; Cr. $50. Mortimer L. Johnson, Dr. $1150. Mdse. on hand, $4703. Cash on hand, $2800. Bills Receivable on hand, $500. Required the adjustment of the Ledger, according to the rule ; The specifi. 186 COMMERCIAL CALCULATIONS. cation to sliovr it in balance, and all tlie accounts reopened to continue business. What is the net gain or loss, and wbat amount is due each partner ? Answer. Net gain, $600. \ ^''^ ^^^ ^' ^^1^*^^' ^^^^0. "" ' ^ ( Due I. N. Stephenson, 4G00. I^ote. If there be any property accounts open, first credit them " By Bal- ance " for the value remaining on hand. If this does not close the account, close it To, or By Profit and Loss. (See Rule 2, p. 41.) Carry the gain or loss to the proper side of the Profit and Loss account. Bring down the balance on hand and include it in your list of Efiects. Then proceed as directed in the foregoing rule. Ex. 3. H. B. McCreary and C. Baylies, partners in business, each one-half interest. The books being out of balance, they desire to adjust them, and at the same time to ascertain their profits. The open accounts are as follows : H. B. McCreary, Dr. $2600 ; Cr. $7100. C. Baylies, Dr. $2300 ; Cr. $7500. Mdse.' acc't. Dr. $18000 ; Cr. $17000. Mdse. on hand, $6000. Cash acc't, Dr. $20000 ; Cr. 18000. Cash on hand, $2000. Bills Receivable acc't, Dr. $3000 ; Cr. $2000. Bills Receivable on hand, $1000. Jas. P. Barr, Dr. $200. S. McClurkan, Dr. $600. W. N. Riddle, Cr. $400. Expense % Dr. $550. Profit and Loss, Dr. $100 : Cr. 400. Required a specification of the Ledger showing it adjusted and closed. What is the net gain or loss, and what is the amount due each partner ? Arwmr. Net loss, $300. ] ^»« J?, B. McCreary, $4350. i Due C. Baylies, - 5050. 1&'7 FINAL EXAMINATION. 1. What is the difference between Single and Double Entry? •[[ 4, p. 24 Introductory Remarks, p. 22. 2. Wliat books are generally used in Single Entry? ^ 2, p. 5. 3. What is the use of the Cash Book ? 1[ 2, p. 5. If 1, p. 95. 4. What is the use of the Day Book and Ledger ? ^ 2, p. 5. 5. Can other books be used in Single Entry ? ^ 3, p. G. 6. What is an Opening Entry ? t 2, p. 2G. Question 1, p. 28. 7. How is the Capital entered in Single Entry books when you begin business ? Question 1, p. 6. 9. What is the meaning of the term " Stock " ? 1 1, p. 2G. 9. When two or more parties begin business, how is the capital entered in Single Entry books ? Question 2, p. 6. 10. Is there any difference in the rules for debiting and crediting personal ac- counts in Single and Double Entry ? Questions 3, 4, 5, and 6, pp. 6 and 7. Questions 3 and 4, p. 25. 11 How is the gain or loss ascertained in Single Entry? ^ 1, p. 12. 12. What is the definition of the terms " Effects and Liabilities " ? If 1, p. 12. 13. How often should the " Cash Book " be balanced in business ? H 1, p. 13. 14. How do you ascertain the cash on hand ? ^ 2, p. 13. 15. How does Stock acc't close after the gain or loss is carried into it ? Stock Account, p. 14. IG. Why are transfers from one account to another marked "f " or "fol"? Question 1, Hanna's acc't, p. IG. 17. What is a folio ? Page 20. 18. What is an acceptance? Page 19. Form 7, p. 135. 19. What are footing lines ? Page 20. 20. Where should the first footing line be drawn ? T 5, p. 95. 21. Where should the second footing line be drawn? ^ 5, p. 95. 22. What are closing lines ? Page 19. 23. What is a Draft ? Page 19. 24. What is a " Due Bill " ? Page 19. 25. What is the definition of " Endorse " ? Page 19. 2G. What is the fundamental rule in Double Entry? Rule 1, p. 25. 27. When and how are the various transactions entered on the Day Book ? H 1, p. 22. 188 FINAL EXAMINATION. 28. How do 70U correct errors on this book ? ^ 1, p. 23. 29. How do you mark Day Book entries when they have been transferred to the Journal ? Note 4, p. 28. 80. Can the Day Book be dispensed with in business ? ^ 2, p. 22. 81. What is the Journal used for ? If 1, p. 23. 32. What is meant by the term "posting " ? ^7, p. 38. 83. How do you mark Journal entries when they have been posted to the Ledger? ^ 8, P- 39. 34. What is the use of the Ledger? "^ 1, p. 24 35. What accounts are kept in a Double Entry Ledger? *ff 4, p. 24. 36. Repeat the rules for keeping personal accounts. Rules 3, 4, p. 25. 87. What accounts are classed as personal? ^ 3, p. 72. 88. Repeat the rules for keeping property accounts. Rules 5, 6, 7, p. 25. 39. What accounts are classed as property accounts ? X 4, p. 72. 40. Repeat the rule for keeping Profit and Loss accounts. Rule 8, p. 25. 41. What accounts are classed as Profit and Loss? 1" 5, p. 72. 42. Where should the abbreviations " Dr." and " Cr." be written in the Led- ger? ^2, p. 38. 43. What is to be done previous to closing the Ledger ? ^ 10, p. 40. 44. What will the proof sheet show ? ^ 10, p. 40. Note, p. 49. 45. How must an error in the proof sheet be sought for ? T[ 1, p. 74. 46. When is the Ledger closed? ^ 12, p. 41. 47. For what purpose is it closed ? ^ 13, p. 42. 48. Repeat the rules for closing personal, property, and Profit and Loss ac- counts. Rules 1, 2, and 3, p. 41. 49. When is Profit and Loss closed? ^ 6, Profit and Loss Acc't, p. 48. 50. How does it close ? Rule 4, p. 41. 51. When is Stock account closed ? *[[ 3, Stock Account, p. 43. 52. What is a Bill Payable? Question 10, p. 26. 53. How do.you keep an account of them ? Note 2, p. 34. 54. How does Bills Payable account close? Rule 5, p. 41. 55. What do -the Dr. and Cr. sides of Cash account show? ^^ 1 and 2, Cash Account, p. 43. 56. How does it close ? ^4, Cash Account, p. 43. 57. What do the Dr. and Cr. sides of Mdse. account show ? ^\\ 1 and 2, Mdse. Account, p. 44. 58. How does it close if all the property is sold ? ^ 4, Mdse. Acc't, p. 44. 59. How if part remain on hand? Rule 2, p. 41. 189 FINAL EXAMINATION. GO. What do the Dr. and Cr. sides of Bills Receivable account show ? ^^ 1 and 2, Bills Receivable Account, p. 45. 61. How does it close? Bills Receivable Account, ^ 4, p. 45. 63. What is the rule for journalizing drafts, orders, &c. ? Rule 9, p. 64. 63. What is the rule for keeping an account of consignments received ? Rule 10, p. 64. 64. What is the rule for keeping an account of goods you consign to others for sale on your account ? Rule 11, p. 64. 65. How are errors in the Journal corrected? ^ 6, p. 74. 66. When a Journal entry has not been posted at the proper time, what is to be done ? 1 3, p. 74. 67. How should errors in the Ledger be corrected ? "ff 2, p. 74. 68. If you open two accounts with the same person, what is to be done ? •[[4, p. 74. 69. If an entry is posted twice, how do you correct the error ? H 5, p. 74. 70. What books are termed " Auxiliaries " ? 1 1, p. 75. 71. When auxiliaries are kept, how is the Day Book made up ? T[ 2, p. 104. 72. Can the Day Book be dispensed with? T[ 1, p. 104. 73. When the Day Book is dispensed with, how is the Journal made up? H 3, p. 154. 74. What is the rule for determining the date of maturity of a note when the running time is in days ? Page 100. 75. When the running time is in months? Page 101. 76. What is Expense acc't Dr. for, and how does it close ? Pages 127 and 164. 77. What do the Dr. and Cr. sides of Interest account show, and how does it close? Pages 129 and 168. 78. How can the contents of an old Ledger be transferred to a new one ? T[ 5, p. 132. 79. Repeat the rule for calculating interest @ 6% for months. Rule 1, p. 177. 80. Repeat the rule for calculating interest @ 6% for days. Rule^, p. 177. 81. Repeat the rule for Simple Equations. Page 178. 82. Repeat the rule for Compound Equations. Page 179. 83. Repeat the rule for Storage Equations. Page 180. 84. Repeat the rule for dividing partnership gains or losses, according to cap- ital invested. Page 183. 85. Repeat the rule for adjusting interest on partners' capital. Page 183. 86. Repeat the rule for adjusting and closing deranged Double Entry books. Page 186. 190 INDEX. PASS Abbreviations 19, 20, 21 Auxiliary Books, remarks on use of 75, T6, 77, 78, 79 Acceptance, form of Form 7, p. 135 Accounts current, form of Form 11, p, 137 statement of. Form 10, p. 136 personal, rules for keeping Rule 3, p. 55, Rule 4, p. 56, t 3, p. 72 Profit and Loss, rules for keeping Rule 8, p. 62, *f 5, p. 72 properly, rules for keeping Rule 6, p. 59, Rule 7, p. 61, t 4. P- 72 classification of 72, 73 Addition, method of proving. 177 Balance Account, Double Entry 49, 131, 172 Single Entry '. 18 Balance Sheet, improved form of 174, 175 Bill Books, forms of 100, 101, 102, 152 Bills of items, form of Form 8, p. 136 Correction of Errors 1 1, p. 22, «iif 1 to 6, p. 74 Cash Account, how kept 43 Cash Book, forms of 13, 95, 96, 148 Closing the Ledger, rules for 41 specifications for exercises in 182 Commercial Calculations 177 Consignment Accounts Rule 10, p. 64 Directions to Teachers pp. 5, 6, 7, 8, 27, 38, 40, Note, p. 09, pp. 73, 120, 1 4, p. 132 Day Book, Double Entry, definition of 22, 104 opened in individual business 28, 105 Single Entry, definition of t S, P- 5 opened in individual business 9 Deranged Double Entry Books, how to rectify 186 ■ Detection of Errors, directions for » 74 Endorsed Note, form of Form 2, p. 134 Equations, Simple, Compound, Storage. 178, 179, 180 Exercises for final examination 188, 189, 190 in making out business forms 1S3, 173 Expense Account, how kept 127, 164 Forms for Notes, Drafts, Orders, &c 134 to 139 Gain and Loss, adjustment of, between partners 18a to 187 how ascertained in Sincle Entry • .12 " " "DoubleEntry ....48 191 INDEX. PAGH Interest, short and easy method of computing 177 adjustment of, on partners' accounts 183 Inventory, form of 86 Invoice Book, form ov 79,80 Index, form of, for Ledger 121 Joint Promissory Note, form of .... Form 4, p. 134 Journal, definition of 23 checking of 40 entries, remarks on Notes 1, 2, p. 66, Note, p. 68, Note, p. 69, p. 73, 1 5, p. 74 six column 155 Journalizing direct from Auxiliaries 1 3, p. 154 Ledger, Double Entry, definition of 24 directions for opening, posting, and closing 38, 39, 40, 41, 42, 120 closing in individual business 49, 132 closing in partnership business 182 Single Entry, closing of. 18 reopening by Double Entry t 2, p. 18 Merchandise Account 114, p. 42, pp. 44, 124 Mercantile Terms 19,20,21 Signs 21 Manufacturers' Books Set IV, p. 140 Notes, rules for computing date of maturity 100, 101 Opening books, specifications and exercises in 53, 54, 180, 181 Posting, directions for 1 6, p. 38, t 8, p. 39 Partnership, rule for opening books in Kule 2, p. 6 settlements 183 to 187 Proof Sheet, form of 49 Questions for Review p. 50, t 4, p. l.':2, 1 1, p. 173 Rules for Journalizing 25, 26 " " with examples for practice 52 to 65 *' closing the Ledger 41 " settling deranged books 186 " computing maturity of Notes, Drafts, &c 100, 101 Retail Business, Books for Set I, pp. 5, 6 Sales Book, forms of 87,88, 141,143 Shipments, rule for Rule 11, p. 64 Trial Balance, form of. . , 49 Wholesale Business, books for SetllT, p. 51 192 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. FEB 7 19^5 JAN101956LU KEC'D LD OCT 30 1957 APR 2 1975 MAR '^i 5 1983 LD 21-100m-l,'54(1887sl6)476 rec'd circ. MAR 7 1983 38 y f^^L YB 18624 ^r' .-^ UNIVERSITY OF CALIFORNIA LIBRARY