■D 05856 V^t^-^ B M SD3 SaO BOOK-KEEPING : BY SITS ^T, 10 ^^rr> -p niix-ii: ett^pky. :l>r sc^^qqls u ADArriD ^^^. /- . ^/. (J^J C:^:ilmiiO ^'^stem of Peninunsliip. L. Ji. ;iA^ArORl5, A.M., A^TIJ '. W. PAVfeON^, rr.iMOIFAli OF THE " BOiTW ■ tHCI -11= AC'.i CW," SUMMER STHEET. fy ?//'"^ '" ^^/V //ai/u//^'uvi^'Uu 7" '-%'/ ^~ Acl "f ConjriM. i" '>>' ' *CO.. in : '«of tltf>1>UUi':l Vw r( BOOK-KEEPIXG, BY SINGLE A XT) D O IT ?. L E EN THY ii-'or ^t\m\s ;iii^ ^fiibrnms. ADAI'TKD TO PAY^JON, Iir>'Tn>' &• SGRIBNER'S CUMliLXED SY^^TEM OF IMINMANSIUP. BT L. B. IIAXAFORT), A. M., AND .1. AV. rVYSON, fBINCI?ALS OP THE "BOSTON MERCANTILE ACADEMY," i; bL;::i£ii stiillt, ik>sto.x. n OSroN: PUnLISIlKD HV CRU.^HV ^V AlNSWOHTII, 117 WASUIXUTON STBEKT. 1865. op ^^> Entered according to Art of Consrsss, in the year l?.*)^. tiy CROSliY, XICUOLS & CO., In tlic Clerk's Office of Uic District Court of the District ot llassidv^ctta 7¥ z (^ 6' ELECTKOTYPLD IIY UOB.IUI i HOBCI.'.S. rO.^TOK. I-IIIVTF.n RY OEORGE C. KAN1> & AVERT. r K i: 1' A (' !•: The importance of the study of Bookkeeping, as a branch of Connuon School education, is now gen- erally aihnittcd ; and, in (ilfering this book to the I public, the only apology which the authors dccni necessary is tlio almost universal demand for a text- book adapted tu tlu' wants of [uqiils in the Common Schools of the country. The peculiar feature of this book is, that those portiiius which are to be written by the learner are , engraved in imitation of real manuscript Account- Books. l!y this means the mechanical part of Bookkeeping, which is no small part, is taught by example. Different styles of writing sliduld be employed for the dillerent parts of the books. The "ledger-headings" should be written in a much larger and bolder hand tli.iu the entries in the same book, and the names of persons and places in thr Day Book should stand out so as to be seeu at a glance. The advantages of this form over the printed one must be evident to every teacher who is interested in this study. The manuscript " Forms," with the Explana- tions, will aid the learner both in writing and M composing similar papers in the transaction of busi- ' ness. The style of penmanship employed in this bock is the same as that of " P.wsox, DuxTox, axd Scrib- xkk's Combixkd Svste.\i of Rapid Pkn.maxsiiu'," so < generally used in every part of the Union ; .uid lliis book may be considered a continuation of that series of Writing Books. The intimate connection between Penman.ship and Bookkeeping makes this arrange- \ men^t very approjiriate. The langu.ige of the Rules an SIX OLE ENTRY. FiuST Set. Dealinr/ in vtin'nus /diids nf Goods. Introductiiin j 7 Remarks on tlie D.iy-Book 7 Directions for Writing tlie First Set, 8 Day-Book 9 Rjmarks on the Ledger 15 Directions for Posting the First Set 15 " liakineing the Accounts, 10 Remarks on the liahince-Shect 17 (Questions for Review 18 Ledger 19 Balance-Sheet 2i Second Set. lictail dincery Business. Introduction, 26 Remarks on the Cash-Bonk 26 Dn-eetions for Writing the Second Set, 27 History nf the Business 27 Day-Book 33 Cash-Book 42 Posting and Closing, 45 Review, 4-5 Questions, 46 First Set. Second Set. TmuD Set. DOUBLE ENTRY. Retail Grocenj Business. pa^f Directions for Writing 48 Explanations of Accounts 49 Rules for Journalizing 53 Journal, 57 Directions for Po-ting 63 Inventory 66 Directions for Clo-ing the Ledger, 67 Ledger, 71 Cash-Book, 82 'I'rial Balance 84 Questions for Review 85 Gyocevies. History of Trnnsnclions, 87 Explanations of Transactions, 93 Review, and Balance- Sheet 94 Boots and S/ioif — .1 Pai/inrsf.ip. Directions for Writing, 97 Invoice-Book 99 Sales-Book 107 Day-Book 115 Cash-Book, 119 Bill-Book 123 Ledger, 125 Trial Balance 127 Review, and Questions 128 Mercantile Calculations, 129 Time Table 136 Bu-iness Forms 138 DEFINITIONS OF MERCANTILE TERMS. Acceptance. Tlic receiving of a Draft, or Bill of Exchange, in &uch a manner as to bind tUc acceptor to make payment. This is done by writing the word "Accepted," with the signature, dat-.-, Ac, iieruss the face of the Bill. Assets. Property of all kinds. Averaf/e. A medium of time or quantity; accmiit. Balance. The difference between the two t; ides of an account. BUI. A written ?;tutement of particulars; a copy of an account. Bills. A general name fur notes, drafts, Ac. Bmd. A written obligation to fulfil a contract. Capital. Property invested in business. Cjm/ni.tswn. A compen:-;ition fur buying or soiling goods, or fur other services. Cmsiju'iinit. Goods sent or delivered tu an agent for sale. Cmtrn. Opposite side. Credit. To trust; confidence. The side of an account on which payment re- ceived is entered. Drhif. To charge with debt; or the charge itself. Diridrnd. The am(mnt divided; as gains anitmg partners or stocklioldors. Discount. To deduct a certain sum or rate per cent, from the prineip;il sum; ail allowance for the use of m.>ney before it is due. Draft. An order for the payment of muney. Duty. A tax imposed by (Jovei-nmcut un impurted goods. Endorse. ^ write one's name on the back (f a note or bill. Finn. The members of a partnership; the company. Folio. A page iu a book; f.niuerly two opposite pages. Guarantee. Assurance for tlie payment of a debt, or fur the performance of a contract. htsHranqe- . S^-curity against. loijS ;by?fire, or otherwise. fnsnlve7ici;.\ .' liiability'ty" pftjC k an J y^ X^ ///^ X4i: . . Af\ z r- yo O'iO 7 r 9^. ^^ '/ J 7 6-6 9 , J , / f l.l 7o / Jr, / y.. / / I'J ). 4^A^// /y / y / // /^ 7/ ' o .%i / r .J .X 2~ / /■ / ^^ //-^ // ' / ^''. / / / , #z/^sv/ oW/^,/// -1?^" .■■/> // '■'r. Zfy- (^^^J.-/iy y/--^?-^^-'' -a-Zey. J^/? Ct€-'7'Z4yu/ 2^i "- 1 J> ^ yX/y: ^X/ <^ ^...^ im. ty^ '-// 'fa^-'/z-' ^^-yi^'-^Cc^y^c^-^ y^C oC ^r ,f£'^ .^'- /'J JM^6 /s ^. yl'^"/ // BOOKKEEPING LEDGER. Tlic Leilgcr is the book in wliicli tlic accounts are collected and arranged in a more systematic order tlian in the I)a_v-Book. All the charges whicii have been made against any one person, throughout the whole Day-Book, are entered in the Ledger, under that per- son's name ; and opposite to these are placed all the credits, if any, in his favor. This gives us a brief state- ment of our dealings with that person, and shows how our account stands with him : so that we are ready to settle with him at any time, without being obliged to look through the whole Day-Book while he is waiting. This process of transferring from the Day-Book to the Ledger is called posting. When books are kept strictly by Single Entry, the only accounts kept are those with persons ; and these show, on the Dr. side what they owe us, and on the Cr. side what wo owe them. There are several forms in which Ledger accounts may be written. The most common form, however, is that in which the page of the Ledger is divided vertically into two narrow pages, the Dr. side of the account being written upon the lift hand half page, and the Cr. side upon the right band half. These half pages arc each divided into five spaces, the first for the dali'.i, the second for the drscriplioiis, the third for the figures which refer to the pai^cs of the Day-Book, the fourth for the dollars, and the fifth for the cents. POSTING. When the Day-Book is all copied, the student may open the accounts in the Ledger; that is, write the names of the dillerent persons with whom he is to keep ac- counts in the blank Ledger, placing '• Dr." and " Cr." at the top of each page. This being done, he slmnld begin with the first entry in the Day-Book. anil ]ui.-t each one as he comes (0 it. To post this first charge against Amos Bomiett, turn to his account in the Ledger, and under his name, on the left-hand or Dr. side, write the date in the first column ; the description " To Mdse.," in the second : the page of the Day-Book where this charge is found, in j the third; and the amount, iu the fourth, as below: — I Br. Amos Bennett, Cr. 1858 D.D. Dob. 1 43 i ot-t. 1 00 1 1 1 Jau. 1. ToMdsc Then put the figure "1"' in the left-hand margin i>l the Day Book, opposite to Bennett's name, i" -Ii.'W t|i;it it is posted on the first page i>f the LedgiM. This " ]>ofit»iark" should be made as soon as the entry is posted, and not till then, as it serves to show which entries are posted, and thus |irevcnts omitting any, or posting them twice. Next, post the debit of the second day to the account BOOKKEEPING of Charles T>. Emmons, in the same manner, and so proceed till the whole Day-Book is posted. But a word or two should be used for the descrip- tion, so that it may occupy but one line in the Ledger ; and the learner may use his own judgment in selecting such words as will best express the nature of the transaction. Some bookkeepers do not insert any descrijAion in the Ledger, entering only the date, the page of the Day-Book, and the amount. If any mistakes should be made, they should be cor- rected by making another entr}-, and not by erasing the wrong one. Thus, if a sum is debited on any account where it ought not to be, it may be corrected by credit- ing the account for the same amount ; and if an entry is made on the wrong side of an account, it should first be corrected by entering the same amount on the other side of the account, " To Erroi'," or " By Error," and also by making the proper entry where it should have been at first. BALANCING THE ACCOUNTS. Before beginning to balance or c?o.se the accounts, re- view the 23osting, comparing each entry in the Day- Book with the corresponding one in the Ledger, to see that the right amount is entered on the right side of the rigJit account. If it is all found to be correct, begin with the first account, and add each side of it. Sub- tract the smaller amount from the greater, and the difference is called the balance. Enter this balance on the smaller side, and the footings of the two sides will be equal. Before balancing, the first account will ajjpear as follows : Dr. Amos Bennett, Or. 1858 D.B. Dob. cts. ; 1858 D.B. Duls. cts. Jan. 1 To Mdse. . 1 43 00 Jan. 1 By Cash . 1 25 00 "19 " Cash . 4 Zi 50 " 7 " Sundries O 69 00 J 1 "12 " Mdse. . 3 32 13 The amount of the Dr. side is $77.50, and the Cr. side is $12G.13. The difierence is $48.63. If this balance is entered on the smallest side, the footing of ' the two sides will be alike, and the account is said to be balanced. Rule as in the text-book, and finally bring doicn the balance belo\v the ruling, and on the opposite side, thus beginning a new account, as seen below : Dr. Amos Beitnett, Cr. 1858 D.B. Dels. CtS.j 1858 D.B. Dols. cts. Jan. 1 To Mdse. . 1 43 00 Jan. 1 By Cash . 1 25 00 " 18 " Cash . 4 34 50, " 7 1 " Sundries 2 69 00 " 30 *' Balance 4 48 S12G 63 " 12 " Mdse. . 3 32 $126 13 1 13 1858 i Feb.l By Balance 1 §148 63 16 BOOKKEEPING When the Dr. side is the largest, the balance will be entered on the Cr. side, as may be seen on Charles D. Emmons's account in the Ledger, page 1. Those accounts which are settled, are ruled and footed in a similar manner, as in Frank Gardner's ac- count, on the second page ; and any account which has but one item on it, may be left as it is, like James K. Lyman's, on the third page. The dosincj entry, " To Balance, 4, $48.G3," is often made with red ink, in order to distinguish it from the other entries, which are real debits or credits ; and if red ink is used for the ruling, it will improve the ap- pearance of the books. But those who do not wish to take the trouble to change the ink, may use but one color for the whole. Li actual business, the accomits are sometimes settled at the end of the year ; and if there is room enough in the Ledger for another year's business, the balances are brought down, and the accounts are continued for another year. Those accounts which are settled before the time for closing the books, should be balanced on the Ledger at the time of settlement ; so, in this book, whenever an account is settled, it should be closed, without waiting till the Avhole Day-Book is posted. BALANCE SHEET, OR BALANCE ACCOUNT. After closing the accounts, the unsettled balances may be collected together on what is called a " Balance Sheet," or each of these balances may be carried to the Balance Sheet, as soon as the account is balanced. This Balance Sheet, or Balance Account, is convenient even when the balances are hrouijlit doicn to new ac- count, because it shows all the balances at one view. All the balances due from others, together with the cash, notes, merchandise, materials, and all other jorop- erty on hand, should be placed on the Dr. side ; and the balances due from us to others, as well as the notes we owe, if any, on the Cr. side. This will be better understood by referring to the engraved form at the end of the Ledger. The amount of Merchandise on hand at closing the books ($1217.73) is supposed to be taken from an Inventory-Book; and the Cash ($112.04) from the Cash- Book. The difference between the assets on one side, and the debts on the other, miist be the " net capital," or the " net insolvency." When the assets are more than the debts, the difference is the net capital ; but when they are less, it is called the net insolvency. This account will bo closed like other accounts, by entering the balance (which in this case is the "net capital") on the smaller side, and ruling and footing as usual. The Balance Sheet, in this book, is placed at the end of the Ledger, for convenience ; though in practice it may be put in some other book. Whenever a new Ledger is to be opened, the balances, as well as the names, may be taken from this sheet more conveniently than from the old Ledger, where they are scattered throughout the book. 17 _ J^ _ — BOOKKEEPING. QUESTIONS ON THE FIRST SET. What is Bookkeeping ? When should the post-mark be made? Why ? How many methods are there ? Wliat should bo posted next? What are they called ? What is said of the description? In single entry, how many entries are made in the Ledger for each IIow are mistakes to be corrected ? entry in the Dav-Book "? Wlien the Day-Book is all posted, what should be done next ? IIow many in double entry? Where will you begin to balance the accounts ? Give an example in single entry. IIow do you balance an account? What else would be done in double entry? What do you mean by the balance ? Why is double entry so called ? On which side must the balance be entered? What kind of business is represented in the first set of books? IIow will the account then stand ? Why are different kinds of goods mentioned? After closing an account, what is to be done with the balance, if Wliat books are used in this set? any? Why is the Cash-Book omitted ? IIow do you close an account which is settled, or paid in full ? Should a Cash-Book l)e kept in such a business? What will you do with one which has but one item on it ? What are recorded in the Day-Book ? With wliat kind of ink is the closing entry often written ? When, and in what order? Why is it used ? What should these records contain? What is said of the ruling? What will such a history prevent ? IIow often do business men balance their accounts? What is said of Agreements, Contracts, &c. ? In what ease are the lialances to be bronchi down ? What is the Ledger, and how is it used? May an account be closed at any time ? What does it show ? What is to bo done with the unsettled balances, after closing the What is the process of transferring from the Day-Book to the accounts? Ledger called? Can the Balance Sheet be made as fast as the accounts are closed ? What accounts are kept in single entry ? What is t)ie advantage of tlie Balanc^ Sheet? What do they show on the Dr. side ? On which side do we place the balances due to us? What on the Cr. side? On which side do we enter the property? In studying this book, what is the first thing to be done? On which side those due from us to others? What should be omitted in the copying? What is tlie dilTercnce between the assets and the debts called ? What is said of the ruling ? When is it called net capital ? What of the blanks? When net insolvency ? IIow much should be written on one line? How will this account be closed ? What is meant by opening the accounts? Why is the Balance Sliest put in the Ledger, in this book? In what order should the entries be posted ? Of what use is it in opening a new Ledger ? IIow will you jioat the first entry ? 18 SINGLE ENTEY. FIEST SET. LEDaER. 19" f A 'H^u ^^^^; //? ^', / .- I. .y^. /m /<<^/l: / Jr . A\r/.y, , " -^ ^ . - Jc Ji>:-^C-ii.f-i^^.^^, /J-J I / A / 'jLf.^ j£x\ys y? '•?A. , '/ ^/, y/^/V'-7'/'7,.7 cm ->-> \/'j ^^T 'M./ '/ ojl (90 ?! /J r'AS ^i) /'J Mff /f,fr 1 / mW^v,-.' / i ^vj/. 'yfts-^x. [/'' /''Jiyy ', / ^^^ e^>' -- y / . .J ' ,-; t' -y-v /-y /' 2i .t -7// G^^^dw ''I^na^-^^n . /Mf /kZi^l-:.,-^ 22 4' /// c/ .. ,/^ -^UiX^- .'?^' y^^£y\^J // /^ ■ ^ * ^ - - X«<.^'^-' •• -■ .. „ 'jy.y^. s yo i( yjy/j.r- SINGLE ENTRY. SECOND SET. A HETATL GROCERY BUSINESS. "25 SINGLE ENTEY.- SECOND SET. The books used in this set are the Cash-Book, Day- I out, sliould he equal to the amount on hand at first, Book, and Ledger. Tlio Day-Book and Ledger are similar to those in the first set. C ASII-B K. The main object of keeping a Cash-Book is to pre- vent mistakes in regard to the money, or to enable us the more easily to correct them, when they are made. All the money received, as well as that paid out, should bo entered in the Casli-Bouk, specifying for what it was received or paid out. so plainly as to be perfectly understood, even by a stranger. The amount of Cash on hand at the commencement of business, and all that which is received from day to day, is entered on the left-hand or Dr. side ; and that which is paid out is entered on the Cr. side. The difference between the two sides, at any time, will be the sum which ourjld to he on hand; and the amount actually on hand, including that in the Bank, if any, should agree with this balance. If it does not agree, some mistake has been made, or a fraud com- mitted. To balance the Cash account at the end of Sept. 4, lot us suppose the amount in tlie Bank to be $200, and the amount in the drawer, or safe, $3G.05. The amount in Bank, and that in the Safe, added to the amount paid added to that which has been received since, as follows : Dr. Cash. Cr. 1858 I Sept. 1 To Stock . . " 3 " 11. Raud . $25007 1500 $205 07 1858 Sept. 1 By Expense Bal. in B'k $200.00 " in Safe nn.05. Sept. 5|Bal. brought aown||':-23G|05 The Cash-Book should be lialanced daily, in order to find the errors, before it is too late to correct them; but the ruling and footing need not be done on the book every day. As no more Cash can be jiaid out than has been re- ceived (including the amount on hand at first), the amount of the Cr. side, if either, will always be the smallest; and the account will be balanced by entering the dilTcrence liotween the two sides on the Cr. side. The Cash-Book for this sot is represented as balanced only at the middle, and at the end of the month; but this is done to bring it within the space of two pages. The several items received, or paid out, during the week, are added, and the amounts are carried into the BOOKKEEPING. outside columns of the two pages, respectively. This might as well bo done cveiy day, if the entries were numerous ; but each bookkeeper will suit his own taste or convenience in matters of this kind. The '• Balance on hand "' should include the amount in the Bank, which should also be specified in the closing entry. It is customar}', in retail business, to keep an account on a slate, or in a Petty Cash-Book, of the cash received for small sales, and to enter the whol(^ amount on tlie Cash-Book, once a day. Such an account is supposed to bo kept in this set, and the amount entered on the Cash-Book, once a week ; and whenever the Cash ac- count is balanced, the amount on the Petty Cash-Book, if one is kept, must be added to the amoiint on the Cash-Book. DIRECTIONS FOR WRITING THE SECOND SET. The learner may now compare tho H'lstorij of the Business with the icritten Day-Book of this set, to see what the transactions are, and the proper form in which to enter them in the Day-Book. When ho has become sufficiently familiar v.-ith this sixbject, he may proceed to write the entries in the blank Day-Book; not merely copying tliem from the text-book, but referring, constantly, to the printed nist. )rv, instead of confining himself to the written Day-Book. The cash items must be transferred to the Cash-Book, as they are met with, thus carrying the Day-Book and Cash-Book along together, as in real business. Those cash items for which any ^)er.so» is to be debited, or credited, must bo entered in tho Cash-Book and Day- Book also, so as to bo posted from the Day-Book ; luid in the Cash-Book tlio mark '■ D. B." should be placed opposite to each of those entries, to show that they are in the Day-Book. The receipts aiul payments of Cash on account, arc entered in the Day-Book of this set because it is tho general practice throughout the country ; but it would be better to make these entries in the Cash-Book only, and then to post them from the Cash-Book. This method is used in the subsequent sets of this book. HISTORY OF THE BUSINESS. Cincinnati, September 1, 1838. I commence business with tho following resources : Cash, $2.50.07 ; Merchandise, $2560 ; Notes due me, $G1)2.80 ; Charles Smith owes me, on account, 883.52 ; James Carlton, $60.49 ; Henry Rand, $48.20 ; Orlando Palmer, S25.32. I owe as follows : On Notes, $175 ; to Preston and Evans, on account, $90.44 : to Harlow & Co., $25.56. Se^jf. 1 Paid John Sawyer, for rejjairs on tho Store, $19.37. Sold Orlando Palmer, on credit, a bbl. of Flour, Au- $7.25. BOOKKEEPING. 8ei)t. 2. Sold James Carlton, on account, VI gallons of Sperm Oil, at $1.50 per gallon ; •'■■ and 25 pounds Powdered Sugar, at 10 cents per pound. Bought of Harlow & Co., on account, 4 boxes Havana Sugar, 1642 pounds net weight, at 7| cents per pound. Paid in Cash, for a set of Account Books, $10.25. 4 Henry Rand has paid me $15, on liis old account. Sold Dr. George Hammond, on account, 30 pounds Crushed Sugar, at 10 cunts a poiuid: and 50 pounds Browu Havana Sugar, at 8J cents per pound. 6 Bought of Preston & Evans, on account. Goods amount- ing to $203.29. Paid them $150 in Cash. Bought of Wm. Lord, for Cash, Merchandise amount- ing to $145.20. James Carlton has paid mo $20 on account. * The student should find the amount, himself. Sept. 8. Orlando Palmer has been painting in the store 4| days, at $1.25 per day, for which I am to give him credit. And I sell him 2 pounds of Coifee, at 12| cents per pound; and 4 pounds Crushed Sugar, at 12^ cents per jDound. , 9 : Sold Charles Smith, on account, a barrel of Flour for $7, and a barrel of Xew Orleans Sugar, weighing 234 pounds, — weight of cask 20, net weight 214 pounds,- — at 6 cents per pound. 10 Paid Cash for provisions, for my house, $7.08. Sold James Carlton a barrel of Flour for $7, and 2 jTouiids of Ning Yong Tea, at 45 cents a pound. Bought of him, 2 cords of Oak Wood for the Store, at $5 per cord. , 11 The amount of Cash received for Sales to this date, is $324.75. « Sold Henry Rand a tub of Butter, 60 pounds, ■ — (tub S-J-,) 51^ pounds net, — at 22 cents a jiouiid ; and 1 ex- pounds Cheese, at 13 cents a pound. i28 BOOKKEEPING. Sept. 13. Cliarles Smith has given me his Note for $100, payable in 30 days, in part payment of his account. Paid Cash for Desk, Chairs, Stove, Ac, per bill, $26.50. Sold Dr. Geo. Hammond a barrel of Flour for $7.25, and 10 gallons of Sperm Oil, at $1.50 per gallon. He has presented his bill for "doctoring" my family for the past year, amounting to $16.53, and has paid the balance of his account, $12.85, in cash. 14 Paid Harlow & Co. $100 on account. Received of Samuel Carter the amount of his Note : prin- cipal $350, with interest for three months, $5.25. Bought of R. B. Simpson &. Co. a bill of Mdse. amount- ing to $123.45, for which I gave my Note, payable 2 months from date. 15 James Carlton has given me an Order on Smith / <-jy^l-^^yi,-£^/y; /J \^^ JcJMf ^ ii fZfy !^ ^^. 'y ^^ ,-,. 0-) / •J 'i'm^le £ntry. ^ DoithXe ErUry Le€i^n- putff , 7.3. M r ''2^7''/-^^^< 0- / 7^^c^ri^ri^yU 'yy/z4y. Ji; y/j^j ty yM'^. y ^ ^- / . :'^J//..y^: -zY^ .^ /^■a.i^U'i6^ m^'. /i^. ^^y.'?4' ^ /c/ffX€'^<:y{e-/c?ya'£^,y/t0'4-^,^f'^. 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' y^^i'/'-i^:^ y (Co€7Al-i^-<''-7^.'-^ % y udtH^',- . ^^-^tz^^y^^'^J- ^J — r 'I Ay. .ay Sf^/ i^l. ^lyTy?-!^. y/ - .// /^ rr / ''t- //--€Z'J. (:Ayyy^.c■■/^^y '•^c/i/ Z' *^- ly. /yff / :'i^'/^^. C ezJ^n- ..-/ir ,iyryy/y. ^yy^fr y^y^: J\fS ^■^ c yj /> ' '7 /. ^'U^', ^^-^tl^ ^^^v, y/j\yj : y-. MM/ / iif '// /^ . y. / / y / X '. /,' ' ''L^/7/// / ///; 71/ a)'y •//',,W. 0^-fJ-/./y7ij/ '/y/^: ,<:'/^y/: J.3 . //-' Aa-/.- 77 ^^^€?.'7-/^ '■YZcT>.^^'1^'1/ , ^ .Zz'i r^^-^jr/^ / ,y/ 7^ d ^a6 // ^7 yAc\<:w ^,5 7W 39 ./? Ol-^.cf^?2y^7^a^^, ^!^/it: . j& -iX^tyi^y .,€Z^c^ J^ ^/^\ ■nw^ianda^ / yi. Si/ Id7/f /7 ij, 'yij 0(7\(7V ../-. /, (i^A:ZJ^Ay. ^ ^ ^ > <0 '^L£-C^-^-ly'^Z-l.-Ley, y^iX^ca-i^z-c-^, i^^i i^-'. s/ # '£/i'-Cv-Vv-^ I / ^1/'- oJC ,Z^ '^ ^/AJa^ ,-/JO) iA^^y , J I / „ /o tV .. /J fV , /J/ / ' / r V'-'/ . / // ^ . „ y/ J . ^^ ■^ ! . SA / .. SS o .50 7 , // J -^2^'/ <^ / y ^ / / /• // ^ -y,/ r^/ f ,-, ^; Y- / / ' ''Z /y ''/ /r .. ^ Cv€ ^ €^w& ..-4^- #>: /'^:c/' 'VtO-V-I'; /fZ ' /'^-£^^>'^^-^:^^/t■^t: , r'/-^^- .^LU^ t^'7 /.€:'' ,<>-y'iy.. x:^-/-?^' ■a/C'^ / ■' /-z'ayUf ^'■ ^ yy/..;£^ r ,■ o-fe V ^6^V 6 cV^^ r^^ JJ So Jf SM SJO yf C-f^ SO J^ jf7\y9 .y//s /z /J- BOOKKEEPING DIRECTIONS FOR POSTING AND CLOSING. When tlie learner has written the Day-Book and Cash- Book, he may proceed to post, as in the first set. The Ledger should contain only the Personal Accounts, and therefore no enti-ies will be posted but those in which some person is debtor or creditor. Although this set represents the business of only one month, yet everything is done in the same manner when the books are closed only once a year. In practice, the Personal Accounts are not closed till they are settled, unless the Ledger is full, and a new one is to be opened. The Ledger is omitted here, that the learner may be obliged to rely more upon himself, and prove his own work. REVIEW. From the statement on the first page of the Day-Book, it appears that I commenced business with resources of various kinds, amounting to $3721, and that I owed, at the same time, $291, making the Net Capital $3430. Ml/ presenl Assets are: per Invt.-Book, $2543.21 Cash-Book, 756.00 Bill-Book, 563.73 Ledger, Merchandise, Cash, Notes, due me, llenrj' Rand owes me, 0. Palmer, Dr. Hammond, " " My present Liabilities are: I owe, on Notes, per Bill-Book, " " Charles Smith, per Ledger, . " " Ilariow & Co., " My present Net Capital, therefore, is 15.21 10.44 12.04 $3900.63 $257.18 3.18 25.90 $2S6.26 $3014.37 Net Capital brought up, $3614.37 From which subtract the original Net Capital, . 3430.00 And the difierence is the Net Gain, $184.37 But I have spent in Cash, for my own use (see Cash-Book), $31.03 And I have also paid Dr. Hammond's bill, for my family, in goods, per Day- Book, page 4 16.53 47.56 Total Net Gain $281.93 The amount spent on my own personal account, $47.56, should he counted among the gains ; because, if it had not been spent, it would now be on hand, either in Cash, Goods, or something else. This set of Books, together with the first, is an example of what might he called pure Single Entry, as the Ledger contains only Personal Accounts. A Stock Account, to show the amount of capital invested, &c., would be convenient ; but, as it properly belongs to Double Entry, it is not inserted. All the necessary facts can be obtained from the statement of the resources and liabilities on the first page of the Day-Book. The Net Capilal may be found, at any time, by subtracts ins: the whole amount of the debts from the whole amount of the property, including what is due from others. But when the debts exceed the assets, the difference is called the Net Insolvenaj. The Net Gain, or Net Loss, may always be found by comparing the Net Capital at tlie commencement with that at the close of the business. 45. BOOKKEEPING. QUESTIONS ON THE SECOND SET (SINGLE), "Wliat kind of business is represented liy this set? What books are used? Why do business-men keep a Cash-Book ? What is entered in it ? Why ? What is put on the left-hand side? Wliat on the right-hand, or Cr side? Wliat will the difference between the two sides show? What must agree with this amount? If it does not agree, what is tlic conolusion ? Please state the whole process of balancing the Cash-Book. How often should the Cash-Book be balanced? Why? What is said of the ruling and footing ? Can the amount paid out ever exceed that received ? Which will bo the largest, if either, tlic amount received, or that whicli is paid out? How often is tlie Cash-Book in tliis set balanced? Why? What should be included in the "Balance on hand"? For wliat is the Petty Casli-Boot used ? How often is the amount transferred to tlic Cash-Book? How often in this set? AVhat is said of Ixdancing? How will you commence the study of tliis 6ct ? How sliould tlie entries be ma,dfi in the blank Daj-Book ? What is said of the Cash items ? How should Cash on account bo entered, and how marked? What is said of the " History "? Is sucli a book now generally kept ? What is tlie first record in the liiytory ? What is the first transaction which is recorded? In which book sliould it bo entered ? Wliat is the second transaction, and how should it bo recorded ? Please state how each of the records in the History should be entered in tlio Day or Cash Book ? What statements are made at the end of the Day-Book? What is tlio first account in the Ledger ? AVliy is this put first ? What entries are to be omitted in posting? What length of time is covered by this set? Would the books be opened and dosed in the same manner if tlio time were longer? How often are tlie personal accounts balanced by bookkeepers? On what accounts are the balances in my favor? On which are they against me? Which accounts arc settled in full? Which has but one item on each side? AVith what capital did I commence? What is the value of the Mdse. remaining unsold ? How much cash is there on hand ? What IS the amount of the notes due mc? How much does Henry Rand owe me ? — Orlando Palmer ? — Dr. Ilaumioud ? What is tlie whole amount of my assets ? How mudi do I owe ? Of what items do my debts consist? What is my present net capital ? How much have I gained by the business ? How much lia\e I spent for my own use ? .Slumld that be counted as a part of the gain? Why? Wliat is said of the first two sets of Book;; ? Wliy is there no stock account in this set ? How may the not capital always be found ? How the gain or loss ? 16 DOUBLE ENTRY, FIRST SET. 47 DIRECTIONS FOE WRITING THIS SET. This set is intended to cxhi!)it tlic principles of Double Entry, and especially to show its advantages over Single Entry, as applied to the same business. For this pur- pose we make use of the same Day-Book and Cash-Book, without any change whatever. The learner will first study the explanations and rules as far as to tlie first Journal, so as to answer the ques- tions, as he would in any other branch of study. FIRST FORM OF JOURNAL. He will now turn liack to tlic Hislori/ of Ihe Business, page 27, and journalize eacli transaction sejiaratcly, as in the First Journal. The cash entries must also be en- tered in the Cash-book. This Journal will embrace all the transactions of the business, iuchiding those in the Cash-Book. But this kind of Journal is not recom- mended for the use of business men, bec'ause it requires too much writing. Its use liere is to teacli the beginner whai it is to be debited, and v'hat credited, in any given transaction. The posting may be omitted. SECOND FORM OF JOURNAL. Having learned, by the first form of Journal, liow to to apply the rules for debits and credits, the student will next proceed to write tlic second form. This is made from the engraved Day-Bonk as follows: — The entries on tlie first page are journalized as in tlie first form. Tlien tlic first entry on the second jiage, and all others of the sartie kind on that and the third page, are taken together Csee engraved Journal) and checked off. Then take the second entry on the second page, and all like it on the two pages. Continue to do so (omitting the Cash items) till all the entries on these two pages are taken. Proceed in the same manner with tiie next two pages, and so on through the Day-Book. Finally, take the Cash-Book, one page at a time. THIRD JOURNAL. This method requires too much turning of the kaves, in looking for the similar entries, when the books are kept as these are ; but it is convenient where the sales, purchases, etc., are kept in separate books. It will be an interesting exercise for the learner, but he need not jmsl it. POSTING FROM THE DAY-BOOK. After having posted the Second Journal, and closed the Ledger, the learner will probably be able to post directly from the Day-Book of the second set, single entry. The opening entries are posted according to the directions on pages 63-65. The other entries on tlie first page as well as those in the Cash-Book, may be posted separately. Then all the similar entries on the 2d and 3d pages are condensed into one by adding their amounts, on a slip of paper, and the whole amount of each is posted in one item to their several accounts in the Ledger. Proceed in the same manner with the 4th and 5th, and 6th and 7th pages. The Cash must be examined each day, and those entries ■«hich are not marked " D. B." should be posted in their proper order, and marked as in the Day-Book. « DOUBLE ENTRY. -FIRST SET. The peculiarity of Double Entry is, as lias already been stated, that the amount of" each entry in the Day- Booh is posted tu the Dr. side oi one or more accounts in the Ledger, and also to the Cr. side of one or more others. One advantage of this method is, that it enables the Bookkeeper to ascertain whether mistakes have been made or not: for if every sum which has been posted on the Dr. side of any account has also been entered on the Cr. side of some other account, it is evident that the whole amount of the debits for any given time, should be equal to the whole amount of the credits, for the same time. If these two amounts do not agree, we conclude that some mistake has been made, and pei'haps many. The next step is, to find where the mistakes are, and then to correct them in the same manner as in Single Entry. Another advantage of Double Entry is, tliat the state of one's affairs can be leai'ncd from the examination of a few of the most important accounts, Avithout being obliged to go through the wliole Ledger. Fur sup^ios- ing all the debts to be " good," it is only necessary to examine the Profit ank being counted as cash on hand. But an account of the cash deposited from day to day, the notes collected by the Bank, ifec, as well as the amounts drawn out on checks, should be kept in some form ; and it is customary to keep it in the Check-Book, which will be more fully explained in another set. When, however, this account is put in the Ledger, it is similar to a cash account. The balance, at any time, will be the amount in the Bank belonging to us. INTEREST AND DISCOUNT. These two accoimts are classed together, because they are of the same nature, — Interest being a com- pensation for the use of money after it is due, and Discount a similar allowance for the use of money before it is due. They are debited for the sums paid out, and for the allowances made against ourselves, either for interest or discount ; and credited for the sums received, and for allowances of Interest or Discount in our favor. If the amount of the Dr. side is largest, the difference is a loss ; but if the excess is on the Cr. side, it is a gain ; and the gain or loss is finally carried to the Profit & Loss account. EXPENSE ACCOUNT. Under this, or a similar title, an account is kept of the expenses of the business, such as Rent, Fuel, Clerk- hire, Stationery, Postage, ifec. As there is seldom any income from these sources, there are not many credits on this accoinit, and the whole amount of the Dr. side, being loss, will be carried to the Profit & Loss account, when the accounts are closed. A separate account may be opened for either of the above branches of expense, to be kept and closed in the same manner as the above. 51 BOOKKEEPING. INSURANCE Is sometimes put uikIoi- tlie neneral head of expense, but a separate account is kept "wlicncvi/r it i= ut great amoiiut. COMMISSION AND GUARANTEE. These accounts are dehited for the sums paid out, and credited for those received from others, as compen- sation for buying or selling goods, or for other services. Tiicy are closed into the Profit and Loss account. BOOKS. The books used in this set are the "Waste-Book or Day-Book, Journal, Cash-Book, and Ledger. THE WASTE-BOOK OR DAY-BOOK. The "History" of the second set, Single Entry, is used again in this set, under the name of "Waste-Book, or Day-Book. Such a book, with the Journal, Avas formerly considered an essential part of the Double Entry system, but it is now going out of use. It contains a record of the business, stated in simi)lo language, such as might be used by a person not ac- quainted with the forms of Bookkeeping. The debtors and creditors are not named, but all the important par- ticulars, — such as the name of the person, date, quan- 52 tity, quality, price, terms of payment, &c., are stated. These records are afterwards written over again in THE JOURNAL. The .Journal is the book in which the several entries which iiave been made in the Day-Book are re-written in a more brief and regular order, preparatory to being posted into the Ledger. Although tlie Journal is not absolutely necessary in business, yet it is quite important that the learner s-hould study it, in order to know how to make tiie original entries in sucli a manner as to be able to dispense villi it, and to post directly from tlie Day-Book, and other books in which the original entries have been made. The Journal is also useful as a means of condensing several entries into one, and thereby shortening the pro- cess of posting. JOURXALIZING. The process of tiansferring from the Day-Book into the Journal is called journalizing. It consists, mainly, in specifying the Drs. and Crs. connected with each transaction, with tlieii amounts. It is customary to mention the debtor first, followed by the creditor: thus, If A. owes B., then A. is Dr. and B. is Cr. ; or, A. is Dr. to B. As soon as an entry is transferred to the Journal, it should be marked, or checked on the book from which it is taken, to prevent its being taken again. BOOKKEEPING. RULES FOR JOURNALIZING. Rule 1. — For Opening the Books. Tlic several liiiith of jjropeiiij on hand at tlie com- mencement, as ivell as the persons who owe me, are debited to " Sfoch;" and Stock is debited to each of the p)ersons and thinijs that I owe. Rule 2. — For Property. The thing received by jie is debtor to the thing (jiven. Rule 3. — For Persons and Puopkrty. The receiver, or the thing received Inj me, is debtor ; and the giver, or the thing given by me, is creditor. Rule i. — Profits and Losses. The Profit d; Loss account is debited for the losses, and credited for the gains of business. illustrations and EXAiMPLES. I. If I commence business with Merchandise amounting to $4530 ; Cash, $500 ; Notes due me, $G25 ; then Mdse., Cash, and Kills Receivable, are debtors to Stock ; and Stock is credited for the amount of the whole ; and the Journal entry would be : Sundries Dr. Mdse., . . . . Cash, . . . . Bills Seceivable, To Stock, $4530 500 625 $i>G55 If, at the same time, I owe on Notes, $345 ; and to A. B., on accomit, $321 ; and to C. D., $70 ; then Stock is Dr., and Bills Payable, A. T>. ami C P., are Crs., thus: Stock Dr. To Sundries, Bills Payable, . A.B CD. II. $345 321 76, 1742 If I buy Mdse. and pay Cash for it, Mdse. is Dr. and Cash is Cr. ; or, Mdse. is Di-. to Cash. If I liuy !Mdsc., givins;- my note for it, Mdse. is Dr.. to Bills Payable. 53 ]i (I K K i: K p I X ( ; . If I sell Mdse. for Cnsh. Cash is Dr. to Mdse. If I sell Mdse. to E. F., tuking lii.s note fur it, " Bills Receiv- able " is Dr. to Mdse. If I buy Mdse. amonntiiig' to |300, and give in pay- ment my note for $200, an/ r ^ /^ ^// ^^', / y - y.' //',/ -_ W //r? /^Le. 'r jp y- ^^/v -J. Z-a^^' z-y^-Z' ■I^ 'l^^y^^^z^'^; ^^^^^^ -//IpV '.y^f-' '.^y/tyc^-^: M. / V- ^-.^ ^C^f?-/ /'i^-i.^" '^' %-- rr J /' cy€i^A^ ^.'I7'^i-/i--tz^. ^^>^«-zr /J A -A ^^J j^/;/ //^ /J ^Yy ys J7 J^ / 1 ^" ■:)j, / .- -/^^ /./ '.; ^./ y^^ .y^ ^^^ ^^ oo 58 ^iK i^-^i? -^^^/^ >^-<<^ if^ ^::/-^^i^: VJO I 2c?C^,/? . '.^'/.'Z^yC/xr/C^ f.. ;r2 y /-« // / ^ ' .-^ ^/ J^^'JSS" mr-A \£y:' O /'/^ 4- ^-^ cii^-V-^:'^/^ ,^ ' ^i'-'i^C-Z^/^ ^(©^f ■ AT ^^' -i^ayg- / y /•:, -£^ J?/' Zf J './ y/ ./J (TO Jf Jii^ /J o,:) 1^ o/ , ;.-^. ./J / <(0 .yJ y \ ., / /yvy ^7 ^,U;y r. ^ /I- / ' ^^.iA %■ V- /^ i <£' / / ^ A - ^-//^:>^V->' '.---r- '^.^cJ //: / .^/^, ^^ jfy- /7^J. // / A A - '//■/■ c / ■ - - /A ./■■ 1 y//r- /,., ~ i ./^ "- £y" •-7;-^-^ ^J- j!o x^' J^-- J: /^- /U.y ^^ .y y^ ■j< , ■ - — -^ J^y " X? / " /4J' 1^' A ^^.j J/ yj /w jy ,/,yf ^ //• /p rr // .^ .'^z' ■ J ,^?? ^^ /^// --. 6fl "Ffvm tAe ihs/i Soak . THIRD JOURNAL. THIRD FORM OF JOURNAL. Cmrinmili , Siptcmbcr 1, 1858. Sundries Dr. To Stock Cash, $250 G7 Mdse., 25G0 00 Bills Receivable, G92 80 Charles Smith, 83 52 James Carlton, 60 49 Henry Rand, 48 20 Orlando Palmer 25 32' 3721 Stock Dr. To Sandries. " Bills Payable, . . " Preston & Evans, . " Harlow & Co., . . 30 Sundries Dr. To Mdse. Orlando Palmer, ist " " 8th James Carlton, 2d " " lOth " " 20th " " 25th Dr. George Hammond, . . .4th " " " . . .13th " " " . . .17th Charles Smith, 9th " " 17th Henry Rand, nth « " ..2rl Samuel Shipman, wth 175 90 25 20 7 11 I 22 12 19 _18 13 12 291 48 41 38 25 15 "177 00 00 00 24 42 30 51 70 17 30 Mdse. Dr. To Sundries. Harlow & Co., . . 3d " " . . IStll Prescott & Evans, cth Bills Payable, . . ua James Carlton, . isti; Samuel Shipman, . 24tii Bills Receivable To Sundries. Charles Smith, . wth James Carlton, . astii Henry Rand, . . 28th Priv. Act. To Dr. Hammond, nth Profit & Loss To H. Rand, 23th Hai'low & Co. To Bills Rcc.,2nh Sundries To Bills Pay., Harlow & Co., 2rth Preston & Evans, .... 20th Store Expenses To Sundries Orlando Palmer, . sth James Carlton, . . 10th 123 10 100 00 73 00 40 00 93 73 5 63 loloo 290 20:: 123 40 12 G69 34 29 45 00 75 83 163 16 53 50 100 00 133 15 61 THIRD JOURNAL. 30 Cash To Sundries, Henry Rand, . . .liuncs Carlton, Milsc, . . . nth Dr. Geo. Hammond, Bills Receivable, . Interest, Orlando Palmer, . Charles Smith, Samuel Shipmau,. . 4tli, ISth 32 00 8tll 20 00 ISth, Srth, 30th 99 li 77 nth 12 8o . Hth, Srth 692 80 14th 5 25 . . lOtb, 2Iet 17 25 23d 25 GO . . 24th 2 95 1804 77 30 Sundries To Cash, Store Expense, ist, 3d, isti: Preston & Evans, Jlerchaadise, . Private Account, Harlow & Co., Bills Payable, . Interest, Bills Receivable, , ISth, 30th Oth, 24th 8th 10th, 25th 14th, 30th 17th 17th 20tll 92 62 200 00 145 20 31 03 150 00 175 00 5 69 500 00 1299 54 J^OTE. — The intelligent student, who has studied these three different forms of Journal, will be ahle to decide which is best for his use. The first is intended to teach the student /low to npjili/ the rules for debits and credits, and thereby enable him to make the original entries correctly, and to post them without journalizing. In the second form, all the entries of the same kind, on two pages /acf'yf^ each other, are collected into one, thus saving space in the Ledger, and labor in posting. As these two particulars include all for which a Journal is really valuable, in practice, we give this form our decided preference. The third form, being laborious and more liable to error, we cannot recommend it, except when separate books are kept for Livoices, Sales, &c., and then no Journal is needed; for the posting from the original entries is as simple as it can be made by anv process of journalizing, and is less laborious. But iii posting from the original books, several similar entries may be classed together, as directed on the 48th page. P2 iJ 00 K KEEPING POSTING. The Posting by double entry requires more writing than by single entry ; but not so much more as is gen- erally supposed. The amount of each entry must be jtosted on the Pr. side of one or more accounts, and also on the Cr. side of one or more otiiers ; but it is not necessary that these amounts should be posted separately. All the items of the same kind upon one page, or for a week, month, or quarter, may be added together, and entered on the Ledger in one amount. Tliis shortening- process is shown in the second and third journals ; and if the learner should post from the second form, the amounts in his Ledger would agree with those in the textrbook. DIRECTIONS. The rules for journalizing are equally applicable io the posting. Tlio first entry in tlie Pay-Book or Journal is posted according to the first rule, by debiting each of the accounts representing the different kinds of property, as well as the persons who owe you, to " Stock," that is, to yourself; and you may use your own name instead of Stock, if you choose. Sundries Dr. To Stock. Cash, Merchandise, . . Bills Receivable, , Charles Smith, James Carltou, Henry Rand, . Orlandu Palmer, $ 250 2560 n6J 83 60 48 25 $3721 00 To post the first item of this entry, turn to the Cash accoimt, and on the Pr. side of it enter the date, and also the words " To Stock," the page of the Pay-Book or Journal from which you are posting, and the amount, and then place the post-mark opposite to " Cash." In the same manner debit the Merchandise account for the amount of the Merchandise, and put the post- mark opposite to " Mdse." So proceed with each of the other debtors in tliis entry. Then credit the Stock account " By Sundries," for the whole amount of the several debits, and place the post- mark in the Journal opposite to the word Stock. This completes the posting of the first entry. Stock Dr. To Sundries. " Bills Payable, . . " Preston & Evans, " Harlow & Co., . $175 00 90 44 25 66 $291 00 This entry is posted as follows : Pebit the Stock ac- count " To Sundries," for the Avhole amount of the debits, placing the post-mark opposite to " Stock," and also credit the " Sundries" (Bills Payable, Preston & 63 BOOKKEEPING. Evans, and Harlow & Co.) " By Stock," each for its own amount, and post-mark them as nsual. 1 1 jy^g It makes no difference whether the debits are entered g^pj ] first, or the credits; but, as we come to the debits first, in reading from tlie Journal, it seems more natural to post them first. The whole of the posting tlius far will appear more plain as shown below. We insert these forms here, be- cause the entries are more difficult in themselves, and because, being the first ones in double entry, begin- ners might bo puzzled by them. Dr. Stock. Or. 1858 1858 Sept. 1 To Sundries . 1 §291 00 Sept. 1 By Sundries . 1 Cash. 1858 Sept. 1 To Stock . . 1 #2.50 67 Mercltand'ise. 1858 Sept. 1 To Stock . . 1 ©2560 00 Bills Receivable. 18.58 Sept. 1 To Stook . . 1 $692 80 $3721 00 1858 Sept. 1 ' To Stock 1858 Sept. 1 1858 Sept. 1 To Stook Charles Smith. To Stock . . 1 $'83 52 James Cahlton, $•60 4!) Henry Rand. To Stock . . 1 $48 20 Orlando Palmer, 1 $25 32 Bilh Ptujahle. 1 1858 Sept. 1 By Stock . . Preston it Evans. 1858 Sept. 1 Harlow & Co. By stock . . 1858 Sept. 1 By Stock . $175 $90 $25 00 44 56 64 BOOKKEEPING. Tlio words "To and By" are used in the Day-Bouk and Journal to express the relation between the debtor and the creditor ; but they are not important in the Ledger, and ai-e, therefore, omitted by many book- keepers. The word " Sundries " stands for two or more per- sons or things of different kinds, as has already been shown in the cxaniplos in journalizing. In posting, this wortl is used us a sliorter form, instead of mention- ing eacii of the persons or things that are included under it. The following is a very simple rule for posting: — Debit each of the Drs. to luhatever stands on the credit side of the Journal entry, whether one or more, and credit each 0/ the Crs. hy whatever stands on the Dr. side. The next entry is more simple, and is posted by debiting Orlaiuhi Palmer " To Mdse.," and crediting the Mdse. account '■ By 0. Pahner." Thus the Dr. is deb- ited to the Cr., and the Cr. is credited by the Dr. The Day-Boole entries on the Gth, 8th, 10th, 13th, and 25th, are each to be regarded as two entries, written in that form to avoid repeating the name. To post one of these entries requires four entries in the Ledger. For that of the 6th, Preston &, Evans arc credited by Mdse., and Mdse. debited to Preston & Evans. Preston & Evans arc also debited to Cash, and Cash is credited by Preston ct Evans. In order to save space in the Ledger, several sim- ilar entries are condensed into one in the Journal, the date of the last ;7('»i being entered in the Ledger; and those who post I'rom the I)ay-]3t)ok niay proceed in the same manner. All the sales of Mdse. on the third and fourth pages are journalized, and posted in one item ; and all the purchases of Mdse. on the same pages are also journal- ized, and posted in one entry. The same is done on the fifth and sixth, and the seventh and eighth pages. The rest of the posting will probably give the student little or no trouble; but he must be curel'ul, or he will malvc many mistakes which will spoil his Ledger, and discourage himself. CHECKING. When the posting is all done, the next step is to com- pare the postings with the Journal or the Day-Book. If the entries in the Ledger are found to correspondi with those in the other book, they are checked with a pencil in both books. When the whole has been ex- amined, if any entries are not checked, or if any axe- checked twice, it proves that some mistake has been' made, which must be corrected before procee^Jiijig- further. The Bookkeeper generally employs another pereon toi read, aloud, the entries in the Ledger, and check them,. Avliile he himself examines and checks the Day-]>ki)ok. But after all this has been done, errors will sotajetimes. escape the notice of both. 'iS> BOOKKEEPING. A D n I X G . The next step is to add each side of every account in the Ledger which contains more than one item, writ- | ing the amounts with a pencil at the left hau I of the money column. Now, as every sum in the Journal has been posted to the Dr. side of one or more accounts, and also to the Cr. side of one or more others, it is evident that the sum of all the debits in the Ledger should be equal to the sum of all the credits ; and if these two sums do not agree, there must bo some error in the posting. THE TRIAL BALANCE. Write the titles or names of all the accounts in the Ledger, in a column, and place opposite to each the amount of each side, in two separate money columns, the debits in the loft, and the credits in the right; and in the narrow left-hand column, the page of the Ledger. Finally, add tliosc two columns, and if the two amounts are equal, the posting is supposed to be correct. [Sec engraved form at the end of the Ledger, jiage 84.) But this proof is not perfectly certain; for if a sum has been posted to the wrong account, it will make no difference with the Trial Balance, provided it is put on the proper side of the account. Xor will the Trial Balance be of any service in cor- recting the errors that may have been made in the original entries ; but the Bookkeeper will need to use the same care, in this respect, as if ho we; e keeping bis books by Single Entry. If the two sides of any account are equal, that ac- count should be closed at once, and may be omitted in the Trial Balance, as it will not affect the result. The Trial Balance may also be made with the dif- ferences of the several accounts, instead of their amounts ; and this will be found more convenient in practice ; — for the same differences or balances that are put into the Trial Balances may also be used in closing most of the accounts. An examination of the Trial Balance will also show, at once, the amounts due on the several accounts. The Trial Balance is taken aboiit once a month, whether the books are closed or not ; so that if any mistakes have been made, they may be corrected with- out delay. INVEXTORY. "Wlienevcr the books are to be closed, in order to find how much has been gained or lost, and also the present state of one's affairs, it will be necessary to take an Inventory of the Merchandise, and other specu- lating property, remaining unsold. This is generally done at the end of the year or oftener, and the opera- tion is caUod " Taking an Account of Stock.'" The Inventory should contain all the items of the property, ascertained by counting, weighing, measuring, A'c. ; and the prices should be estimated according to the market BOOKKEEPING. value. When there are many small items of goods, it is customary to estimate them at cost, as shown by the Bills or Invoices ; but where the items are large, and the price is much greater or less than the first cost, this method is not sufficiently accurate. In this set, the items of the inventory aie omitted, the whole amount only being stated. The book in which this Inventory is written is called the INVENTORY BOOK. 1858 Sept. 30 Merchandise now on hand . $2543 21 PREPARATIONS FOR CLOSING THE LEDGER. The amount of the Merchandise notu on hand, as found in the Inventory-Book, must be entered on the credit side of the Merchandise account, with the date of the closing, and the description, "By Balance (Invt.)." This, like other closing entries, should be written with red ink, when it is convenient. After the account is closed and ruled, this balance will be brought doicn, if the account is to be continued on the same page ; and will also be carried to the Dr. side of the Balance ac- coiuit, as part of the assets. If there are any other kinds of property remaining ] unsold, the amount of each will be entered on the I credit side of its own account, in the same manner as i the Merchandise above. j In this set there is no other kind of speculating property remaining unsold ; so that the learner is now ready for CLOSING THE LEDGER- Omit the Stock and the Profit & Loss accounts, and proceed to close the next in oi'dcr, wJiich, in this set, is the Mercliandise account. Find the difference between the two sides, as the ac- count now stands, including the Balance, per Inventory. Now, as the Dr. side shows how much the Merchandise cost me, and the Cr. side how much it has produced, directly and indirectly, the difference between these two amounts must be the sum gained or lost. If the Cr. side is largest, there is a gain; but if the Di*. side is largest, tlie difference is a loss. Illustration: — If I buy three barrels of Flour at $5 a barrel, the amount of tiio Dr. side of the account would be $15 ; and if I sell two of them for $6 a barrel, the amount of the Cr. side would be $12. Now, it is plain that it would not bo correct to say that I have lost the difference, $3, because I have paid $15, and re- ceived only $12; for the other barrel of Flour, which I have on hand, ought to be worth what it cost me ; and if this $5 is added to the amount received for the two barrels sold, the whole amount of the Cr. side will be $17. Subtracting $15, the amount of the Dr. side, or B O K K K E P I N G . the cost, from this sum, and the difference is S2, wliioh must be the gain. Again, as I gave $5 per liarrel, and sold it for $6, I have gained SI on each barrel; and on two barrels, the gain must be $2, as above. Dr. Flour Account. Cr. 1858 1858 Sept. 12 To Cash . . . «15 Sept. 20 By Cash .... 812 " 30 " Profits Loss ' " 80 " Balance Invt. 5 $17 §17 Oct. 1 ; To Balance . . | f 5| Sup]iose two barrels of the above Flour have been sold at $4r.75, and one barrel remains unsold, which is worth what it cost, then the whole account will show a loss of 50 cents, and be closed as follows : Dr. Flour Account. Cr. 1858 I 1858 Sept. 20 Sept. 12 Tu Cash . . . $15 By Cash . . . . $'■> 50 i " 30 " Balance Invt. 6 00 $n — C( C( " Profit & Loss $15 50 00 Oct. 1 ] To Balance . . | $5| When the projiorty has all been sold, there is, of course, no " Balance Invt." to bo entered ; but the ac- count will be closed, in other respects, as in the first case. The balance of the account will lie the gain, or lo.«s, according as the Cr. or Dr. side of the account is the largest. Suppose the Flour, mentioned above, had all been sold at $G per barrel, then the account would have appeared as follows, showing a gain of $3 : Dr. Flour Account. Cr. 1858 1858 Sept. 12 To Cash .... $15 00 Sept. 21 By Cash .... $12 00 " 30 " Profit & Loss 3 00 " 25 .... 6 00 $18 00 $18 00 Again, if the Flour had all been sold at $4.75 per barrel (less than cost), there would have been a loss of .75, and the account would have been closed in the folliiwinir manner: Dr. Flour Account. Cr. LS58 Sept. 12 To Cash ■ Ib.Jb $15'00 Sept. 20 By Casli .... $14 25 \ " 30 " Proiit & Loss . 75 $15^00] $15 00 Proceed in the same manner with all Speculating Property accounts, such as Bank Stock, Kailroad and all c)tlicr Stocks. Slups, Houses, Laud, etc. etc. The Eepresontative accounts, Interest and Store Ex- penses, as tliey rej^resent lessee and gains, are closed into 68 BOOKKEEPING. the Profit & Loss account. So all otlicrs wliich from their natiii'C sliow a gain or a loss. Tlic Private account is closed into the Stock account, because it l)ek)ugs to the same person, that is, the owner of the business. Some prefer to post the private ex- penses directly to the Stock account, and keep no private account ; but when it is kept, it should bo closed as above, and not into the " Profit & Loss," because it is not a part of the losses of the business. Tlio Bills Receivable account, like other property ac- countri (not speculating), is closed into the Balance account, when a Balance account is opened ; but in all cases the closing entry will be " By Balance," for the amount of unpaid Notes on hand at the time. The Bills Payable account, from its nature, will have the largest amount on the Cr. side, so long as any of these Notes, /... •/ . ■ ' .. ^.K^ 1 : / // -y / . / '' / ^/■i^-e/'/://V;- yCCC /;.: ^ ^■^Zf^^Z ■..A /.-' WM' // K-CtJ // .,V/.yL^ y^ J^J ^ ' /^y-X^C^Cy/i:: . ./y A: )J y / / y^fiso y^f ij> -/ . r^"- / /y 7,5 '^r- ^dlUJ ' / U^C^^yl^tl. X-' /mr '_-;4?:,.^$^^^'. J r / -^A #^^' ■/^r ^7" <_^J /CV ^7^ ,77-^ /'■/' Joe /^^,JCy 7.''f^C-€-', /OO £' \00 9 jy^j.j'f So V/J7 ^.r3 I jy 1^^^ / ^0\6W JJ" 7J „y^' JJSd' ^^y ^ r^/^ y(^.- A3\ » // il.y/ '^^ "^'/UiZ-ls^ 'i'{>cZi^ a(Li'am/nc'7/-u ^ ^ 7Uo \ 1^ .f J' /JO) 3^ J/ I i J" y/3 a vj. 'J^-f^.^-(->^-<7-lc£'-3'/?-/^-^^vz << ^, U^r c / , A-^ 4^ . / 3d/ ./d >/ ^S f^ J^(r J^ 'r rJ&'M/- a, ^.. d/ (yZ i^O I UNIVERSITY j / ,. /; J „ -/-> A // /' J- „ -/^' S / • / 'r J./ / .^7 J/ ^ ^'^: %Mc '■y-r^/.r-.-J y/'/'[^ ^2^C-/^ CI , ^^yi- yf^/o^ •^ / y^/f ^4 A^^yfZ^^^y-ayc: . ^J^ e:Z^^^,e^'0.^z^.^'^-d^' : / ,. '7^^^. c-^ty- -«?-?-Z-?;-<<^ ^-^'-y-Z'^ >4-j 2;\0c) / , ^CJ. .-' y .^■^iJT^ --/- /': a. z.£y:n^' y/'<^- v-1?^ ■(^-^.K^^/.'^iy^ c ■'^-/'^ ' ■y-r ^1^ /■ / ' /O / / ,/r/^ . :-y<. ^ V" /- -v>/: Y / „ (.-i^^-a.-i^t^: J- '-/l^' //^ /^ // 1 ■SJ .33 M :)) ■y /v ■i /S ^y VJ: /?.> /^S/J c^^; yz^^ .>.. c x/ :^<^ ':jy ,^z /. /^/ ^' yj/ rjT^ y^-^ff ffi^y^^^ f^\ o/y/(r 6Y JA'^ rir JW^^ 3^7'' oy j^i J>^ n! BOOKKEEPING. QUESTIONS ON THE FIRST SET, DOUBLE ENTRY. What is the peculiarity of Double Entry? For what credited ? IIow closed ? What is one advantage of this method? IIow may we know whether there is a gain or a loss on these IIow can errors be detected? How corrected? accounts? What is another advantage? For what is the Expense account kept ? What accounts are kept in Double Entry? Is there generally any gain on this account? What arc Personal accounts? What is said of Insurance, Commission, and Guarantj? What are Property accounts? What books are used in this set ? What are Speculating Property accounts? What is said of the Waste-Book? What are Representative accounts? What does it contain? What particulars are stated? Give examples of each. What is the Journal ? ■What is tlie Stock account ? In what does journalizing consist? Is it generally kept in partnerships? Which is written first, the Dr. or Cr.? For wliat is each partner debited and credited? Is the Journal absolutely necessary? What IS the difference called? Why should journalizing bo understood ? For what is the Merchandise account kept ? For what is it useful ? For what is it debited? Credited? Repeat the four rules for journalizing. What will the difference be? Give illustrations under each. ^^at is said of other Speculating Property accounts ? The teacher may read the examples, and require the pupils to give the Journal entries. 1 What is meant by " Bills Pieceivable " ? Why ars the Journals introduced into this book? For what is this account debited ? How are the entries made in the first Journal ? For what credited ? AVhat caution is given here ? Which side of this account will be the largest, if either? IIow docs the second Journal differ from the first? AVhat will the balance be? What is said of this method? 1 What are " Bills Payable"? What of the third Journal ? For what is it best adapted? When is this account credited ? From which of the Journals is the learner advised to post? For what is it debited? What is said of posting by Double Entry ? ■ What must the balance be? IIow may the process of posting bo shortened ? Why is not the Cash account kept in the Ledger ? IIow is the first entry in the Journal posted? The second? What is said of a Monthly Cash account? Which should be posted first, the debits or the credits? What is said of the Bank account? What is .said of the words " To " and " By " ? " Sundries '? In what book is this account kept ? Give the rule for posting. Why are Interest and Discount classed together? What method is adopted to save labor and space ? For wliat are they debited ? When the posting is done, what is the ne.\t step? i^- ■ 85 BOOKKEEPING. What should bo done after " checking up the books" ? "What is tlie Trial Balance ? IIow is it made ? Is it a certain proof of the correctness of the Ledger ? Why not ? What is said of errors in the original entries ? Wliat accounts may be omitted in the Trial Balance? What otlier purpose does the Trial Balance serve? iiow often should it he taken? When should an Inventory be taken ? Wiiat should it contain ? How ascertained? What is said of the prices ? Are the items of the Inventory given in this set ? Wliat is the first thing preparatory to closing the Ledger? What is afterwards done with this lialanco? Are all kinds of speculating property treated in the same manner ? IIow shall I proceed to close the Ledger ? - .)W may I decide whether any account shows a gain or a loss? Give an illustration. IIow is the first Flour account dosed? The second? Third? Fourth? IIow are the Interest and E.xpense accounts closed ? Why ? The Private Account? Why not into Profit & Loss? In what other way may this account he kept ? How is the Bills Receivable account closed? The Bills Payable account? The Personal accounts? The Cash account ? When all these accounts have been closed, what is next to bo done ? What is the use of the first Trial Balance? AVhat of the second ? Of what does it consist? What does the Stock account show? The Balance account? Can there be more than one net capital at the same time? What, then, is the conclusion? What is the final closure ? What was my net capital on the first of September ? What is the value of the Mdse. on hand at closing? IIow much has been gained on this account ? IIow much lost on Interest and Store E-xpcnscs ? IIow much have I spent on Private account ? AYhat is the amount due me on Notes ? How much do I owe on Notes ? On wliieh Personal accounts are balances due me ? What is the whole amount due me on these accounts? IIow much do I owe on accounts ? What was the net capital on the first of September ? AYhat have Ijeon the net gains of the business? Why subtract the amount spent on Private account? * How much more am I worth now than when I began ? AThat is my present net capital ? In what other way can it be proved ? In tlie Third Proof, how much is the gain ? With what does this agree ? 86 BOOKKEEPING. SECOND SET. — DOUBLE ENTRY. Tlic following History or record of transactions is given to assist tlia learner in applying the principles which he has been studying in the preceding pages. The various papers, Notes, Receipts, &c., should be written in the proper form, signed, endorsed, fbldeil and filed, as they would be if tlie transactions were real, instead of imagiuary. A regular set of books may be written out, based on this history. New York, October 1, 18.58. I commence business this clay with the following- assets, viz.: Cash, $500 ; Merchandise, per Inventory, $4875 ; a Note for $500, signed by William Everett, dated 9th JIa){j 1858, payable in three months; another for $-450, signed by John M. Williams, dated 23d Aiig., 1858, paj'- able @ 90 days, ivithout grace ; another for $'200, signed by E. F. Young, endorsed by William Rogers, dated January 1, 1856, on demand, and interest ; another for $88.23, signed by J. C. French, dated January 25, 1858, @ 60 days ; and another for $61.77, signed by H. A. Cook, and dated .July 1, 1858, (g, 6 months. Charles Sumner owes me, on account, $125.83 ; James Connor, $02.45 ; Henry Rolland, $62 ; Oliver Parsons, $■13.95 ; Isaac Hartwell, $35. 1 owe on Notes as follows : One to S. L. Draper, for $300, dated April 1, 1857, payable in 6 months; another to W. H. Mills, for $165.75", dated July 23, 1858, on 3 months; and another to R. E. Patterson, ibr $135, @ 60 days, dated Sept. 13, 1858. I also OAve Porter & Emmons, on account, $240 ; Howland & Co., $162; and J. & S. Rich, $85.42. Sold James Connor, on account, 1 bbl. Flour, CG-'^5 ; 50 lbs. white Sugar, (jj) 10^ cts. ; 15 gallons Sperm Oil, ((I) $1.37^-; and 1 cpiintal of Fish, $3.75. 2 Bought of Crosby, Nichols & Co., Account- Books and btationery, amounting, per bill, to $26. (See Expl.ination, page 93.) Bought of Howland & Co., for Cash, 2 Hhds. N. 0. Molasses, 231 gallons, @ 30 cts. (BiU.) 4' Paid J. & S. Rich Cash in full of their account. (Take a Receipt.) 5 Received of Henry Rolland, on account, $40. (Give a Receipt. ) 6 Bought of Porter & Emmons, on my Note @ 4 mos., a bill of Mdse. amounting to $327.33. (Write and Sign a Note in such a form tliat they may get it discounted at a Bank.) Sold Geo. Harper, for Cash, a bbl. of Flour, $6.87+; 50 lbs. crushed Sugar, (T, lOf cts. : a bbl. of brown Havana Sugar, 239 lbs. (19 out), % li cts. 8" BOOKKEEPING. Bartered with James Connor as follows : Received of him 8 cords hard Wood, O $6, and 25 bushels Potatoes, @ 75 cts. ; all for my house. Gave in exchange 2 bbls. Flour, @ $7 ; and a chest of Tea, 10 lbs. net, @ 42 cts. The balance on account. 9 Bought of "Warren Lewis, for Cash, 4 boxes Havana Sugar, gross weights 575, 567, 583, 561 (tare 15 jjer cent.), (oj 6J cts. (BUI.) The Retail Sales, for Cash, to this date, $321.12. 11 Sold Oliver Parsons, on account, 10 lbs. ground Coffee, @ 15 cts. ; 25 lbs. Havana Sugar, @ 8 cts. ; 10 lbs. refined Sugar, (<(> 11 cts. 12 Sent to my own house goods amounting to $54. 13 Paid my Note to S. L. Draper, dated April 1, 1857, with 7 per cent, interest. 14 Received o ting my Note discounted. I may do the same with his, or I may hold it merely for security. Nov. 29. — The interest on Bradbury's Note, and the discount on mine, are of little consequence compared with the value of the house. Nov. 30. — The discount is reckoned like interest, for the time between this date and the last day of grace, at 7 per cent. REVIEW. From an examination of my Books it appears that my present assets, counting all the debts good, are. Cash, per C. B., $388.41 Merchandise, per Inventory, 3698.58 Bills Receivable, per B. B., 610.25 House at Fairmount, 2500.00 Oliver Parsons owes me on act., 17.31 Henry Rollaud, " " " 13.73 H. C. Fisk, " " " 31.57 Saml. Rogers, " " " 40.31 J. W. Payson, " " " 20.G9 Isaac Hartwell, " " " 24.47 J. R. Story, " " " " 48.21 $7393.53 owe as follows : Bills Payable, per B. B., $1035.56 James Connor, on act.. 1.33 $1086.89 Net Capital, now. $6356.64 Net Capital Oct. 1, 5946.06 Increase of property, in 2 months, The Profit & Loss act. shows total gains, The " " " " " " losses. Net gain of the business, Deduct amount spent on private act., Increase of property, as above, $410.58 710.82 179.49 $581.33 120.75 $410.58 S4 DOUBLE ENTRY. THIRD SET. ^V\^E[OLES^VLE BOOT ^ND SHOE BUSI:N"ESS. A PARTNERSHIP. EDMANDS & rUTNAM. 95 BOOKKEEPING. DOUBLE ENTRY. — THIRD SET. Having in the three preceding sets of books shown, by example, the style of penmanship and arrangement suitable for keejoing books in a small or retail business, the remainder of the book is printed in common type, and represents various kinds of wholesale business. This set of books represents a Wholesale Boot and Shoe business ; a partnership conducted by two eqiial partners, investing nearly equal sums, and the losses or gains to be divided equally. BOOKS. Besides the books used in the preceding sets, the " Day-Book and Journal combined," the Invoice-Book, and the SALES-Book, are here introduced as separate books of original entry. THE DA Y-B K. This book, as used in this set, partakes of the nature of lioth the Day-Book and the Journal, the peculiarities of the two being united in one. The entries are first made in journal foiiu, and are then followed by sucli particulars and specifications as are usually put in the Day-Book, when both books are kept separately. The entries made in this book are such as do not properly belong in either of the other books. Notes given or received, allowances for interest, dis- count, damages, deficiencies, A'c, are entered here, and afterwards posted directly to the Ledger. LwoicE-BoOK. — In this book is entered all the iler- chandise bought ; and that which is in the possession of the partners at the commencement of the business is regarded as if bought by the firm, and is entered in the Invoice-Book accordingly. The entries in tliis book may be posted directly to the Ledger, or they may be journalized, and then posted from the Journal. The whole amount of Jlerchandise which has been bought will be posted in one item, as it is found added at the end of the month. This, indeed, is one of the principal reasons for the use of the Invoice-Book and Sales-Book, as sejiarate from the Day- Book; for the Merchandise bought, as well as that which is sold, is kept distinct from all other entries, and the whole amount of cither is thus (.'asily fiund. Tlio several persons of whom the goods have been bought must be credited separately, of course, what- ever method of bookkeeping may be ein])l(iyed; but if several purchases have been made from the same per- son during the montji, these may be condensed into one entry in the J(.>urnal, or they may be posted directly into the Ledger in one sum, as the liuokkeeper may choose. The Sales-Book is that iu which all the sales arc recorded, whether on credit or for cash: and it will be journalized or posted in the same manner as the Invoice- Book, except that the entries are reversed — the Mer- chandise account being credited for the whole amount, and the several parties to whom the sales have been made debited for their respective amounts. as B K K E E r I N G . Sales for Cash are marked "Paid" in the margio, so as to prevent their being posted, and the amounts are not extended into the outside cohnnn, and conse- quently not added with the other sales. Sometimes goods which have been sold on credit, and entered ac- cordingly in the Sales-Book, are paid for before the entries are posted. In such a case, if we have not already an account Avith the person to whom the sale was made, it will not be best to open an accomit with him ; but merely to mark out the amount which was extended, and also mark the entry " Paid." The record of the payment \vill bo made in the Cash-Book, or else- where, as the case may be. Some bookkeepers omit the cash sales in the Sales- Book, and enter them only in the Cash-Book. B I L L-B K. The Bill-Book in this set is used merely for con- venience, although it is sometimes used as the only book in which Notes, Drafts, &c., are entered, before being posted into the Ledger. The form of the Bill-Book vai-ies somewhat to suit different circumstances. Some prefer to write the several dates at which the different Notes become due in one column, promiscuously ; others have the book so nded that the several months of the year occupy separate columns ; others devote a whole page to each of the months. The first form is shown in tiiis set, and the second will be given in the next. Both dates at which a Note falls due, vi;:., that on which the specified time expires, and the last day of grace, are entered in the Bill-Book, when it is con- venient; but when these two" days aro in two difierent months, and there is not room enough for both, the first should bo given instead of the last. When Notes are given or received they should bo entered in the Bill-Books at once, so that by examining them the business man may know when the payments are duo, and be prepared for them. The Bill-Book is so simple in its form and use that no further explanation of it seems to bo necessary. DIRECTIONS FOR WRITING. The learner will first copy the several books in their order, except the Bill-Book, which should be made from the entries in the Bay-Book. But, if he wishes to save time, he may omit copj'ing the invoices and sales. He will then post each of the books separatel}-, con- densing similar entries in each book, for the whole month. But, if it is [jreferred, the Invoice, Sales, and Cash Books may be journalized at the end of the month into the Day-Book, which thus becomes a Journal. If this latter method is adopted, the whole is jiosted from the Day-Book or Journal. The Ledcjer has been omitted in this set, that the learner may rely more upon himself; l)nt the Stock ac- counts, the Profit tt Loss account, and the Trial Balance, which are given, will servo as a key to the other parts of the Ledger. 97 BOOKKEEPING, The process of journalizing this set is very simple. Beginning with the Invoice-Book, the first Journal entry would be : no Merchandise Dr. To Sundries. (Goods purchased during the month.) G. AV. Edmands, — invested, . | Lemuel Putnam, " W. B. Braman, .... 1st 15th Chase & Keunard 20th, 1st, 14th, 2'Jth&30th, $100 80 99 00 75' 00 300 00 126 00 402*00 $10564141 10980 64 274 828 80 00 Thiis the several names are taken in the order in which they occur in the Invoice-Book, and the learner will look through the month for the different purchases that have been made of the same person, and condense them together as above. So proceed till all the pur- chases of the month have been transcribed. The first entry from the Sales-Book would be : fiundrics Dr. To J.Ierchandise. Wm. Adams & Co 4th, Gth, 2Gth, Thomas Barrows, Cth, 30th, Wm. Barton & Co., The sales for cash will be omitted in the journalizing, because they are entered in the Cash-Book, and will bo taken with the other cash items. §286 92 126 00 174 30 443 •52 180 00 To journalize the Cash-Eook, the first entry from the Dr. side will be: Cash Dr. To Sundries. (Received this mouth.) G. W. r.dmands, — inycsted, . Lemuel Putnam, *' AVm. Adams i Co 4th, Merchandise, . . 7th-10th, Wm. Barton & Co., $2000 1600 200 874 00 00 60 20 Then from the Cr. side the first entry will be ; Sundries Dr. To Cash. (Paid this mouth.) Expense 4th, 9th, 14th, Wm. B. Braman 5th, 21st, 28th, John C. Redmond & Co., $124 00 75 Oil 1 (10 80 200 100 99 00 75 00 274 180 Tlie above directions will be sufiiciont to enable the learner to journalize the several books witliout difii- culty ; and if similar entries are condensed, as hereto- fore directed, there will bo less labor in posting, so that in some cases it will require less labor to journalize and post by this method than to post from the original entries, without journalizing. AGREEMENT. In forming a partnership, it is important that each partner should have a copy of the Articles of Ai 48 '• ■■' Grained '• .80 38 40 0^ oG " '• Goat '' .95 34 20 3G '' '■ Toilet Slips^, .50 18 00 16 "' " Snow Boots, 1.50 24 00 Ifi $154 GO Freeman & Lnnt. 11 doz. Calf Skins, 374 lbs., . 94 351 56 « Louis Sanderson. U doz. Grained Leather, 900| lbs., . .14 126 07 Gl lbs. Split " . .38 23 65 18 17 214 42 ITli " " '' . .38 John B. Grant. 48 prs. Child's Goat Boots, . .42 20 IG -« •-«* 48 " " Grained " . .42 20 16 ^ 24 " Wo's Snow Boots, . 1.50 36 00 24 " " Enm'd Polka Boots, . .95 ''2 80 24 " " " « " M.W., . . . . .95 22 121 80 92 1 Amount carried forward, $3432 00 HI SALE S-B K. Boston, October 18, 1858. Amount hrouglit forward, Smith k Trainer. 120 prs. Wo's Enml'd Sewed J. L. Boots, ... .90 120 '• Child's " Peg'd Laced " 42^ 60 " Mij^ses " " " « 65 23 Sides Eiiml'd Leather, 1141 ft., 18 20 Thomas Simpson. 60 prs. Wo's Gout Peg'd Polka, 90 60 " '• Ini't Calf Strp'd Shoes 62i 59 " Misses " Goat J. L. Boots, 55' 60 " " " v T>alrinoe i Si 2580 64 Profit Oct. 30 it Loss : $12454 97 Cr. 1858 Oct. 30 a ii 11 ii To ExnensG •; 1 $200 00 295 47 1858 Oct. 30 ii a ii a it a By Merchandise, " Interest, $684 33 125 125 27 59 66 67 U ii '' Browu tt Vincent, 473 72 19 Geo. W. Edmands, Leuinel Putnam, $969 $969119 i ;j 126 T R I A L - B A L i\. N C E Boston, October 30, 1858. L. F. George W. Edmands, . Lemuel Putnam, . . Profit & Loss, . . . Mercliandise, . . Expense, Interest Bills Payable, . . . " Receiv'able, . . Cash, Chase & Kennard, . A. & A. Lawrence, . . C. W. Stoddard & Co., Wm. Adams & Co., Thomas Barrows, . Samuel Barrett, . . . Smith & Trainer, . . Thomas Simpson, . . Freeman & Lunt, . . Louis Sanderson, . . Plimpton & Warren, . Simonds & Thompson, Dr. 769 19026 1327 4712 174 180 129 234 439 201 387 313 203 19 40 85 13 36 00 00 47 99 56 95 08 70 28100 28 Cr. $1256441 12580'64 9547 3359 1953 86 400 50 307 27 16454 28100 28 '"*B BOOK-KEEPING. REVIEW. It appears from the Partners' accounts that the net capital of the firm, at the commencement of business, was $25155.05. Having continued in the business one month, they found it less profitable than was expected ; it was decided by mutual agreement to dissolve the partnership. An examination of tlieir accounts shows tliat they have lost, by the failure of one of their customers, $473.72, and tlie expenses have been 8405.47. The total losses, therefore, are 8969.19. But they liave gained on Merchandise 8684.27, and the credit balance on the interest account is 833.59; niaicing tlie total gains 8717.86. This sura subtracted from the total losses leaves for a net loss 8251.33. Being equal partners, this loss must be divided equally lictween tlie two; therefore Edmauds' half of it is 812").Gi3, — Putnam's, 8125.67. When the amount of the net loss is entered on the Crcdi: side of the Profit & Loss account, it will be bal- anced ; and then, if the same two sums are debited on tlie partners' accounts, they may be balanced like other personal accounts, and the balance of each partner's account will be his net capital. QUESTIONS. What does this set of books represent ? What books are used in this set ? Describe the " Day-Book and Journal Combined." How is the Invoice-Book used ? What is the use of the Sales-Book ? What is said of the Cash Sales ? Is it necessary to journalize these books ? For what is the Bill-Book used ? What is said of copying in this set ? How should the several books be posted V Why is the Ledger omitted in the text-book ? How much was mvested by each of the partners ? How much Merchandise has been bought ? How mucli sold during the month ? How much Cash has been received ? Paid out ? What amount of Notes have been received ? How much has been paid on these Notes ? What is the amount of Notes Payable now due ? What is due the firm on acc't ? What do they owe ? What have been the expenses during the month ? Wliat has been lost by bad debts 7 What is the whole amount of gains ? Losses ? What is the net gain or loss ? 26 BOOKKEEPING. MERCANTILE CALCULATIONS. INTEREST AND DISCOUNT. T£IE term Interest, as used by business men, may be said to mean tlie use of money, or, the price paid for the use of money. When, for example, a man pa^'s me $6 for the use of $100 for one year, the sum he pays me is not the interest, but it is the price paid for the interest or use of the money. I liave received. Cash ($6), and he has received the use of $100. Hence, in Bookkeeping, Cash is debited and Interest credited, in cases of this kind. Discount is a similar allowance for the use of money when it is paid before it is due. Note. — The sum on which the Interest is to be reckoned is called the Principal ; tlie price paid for the use of $1 one year is called the Rate, and the Principal and Interest added together malie the Amount. The Rate is fixed by law, and varies in the different States. In New England and most of the States of this Union it is G per cent. ; also in Canada and Nova Scotia. In New York, Michigan, Wisconsin, Minnesota, South Carolina, and Georgia, it is 7 per cent. ; in Alabama and Texas, 8 per cent. ; in California, 10, and in Louisiana, only 5 per cent. ; also in England and France, 5 per cent. Tiiese are the rates fixed bylaw, in all cases in whicli no particular rate is specified. But in some of these States a higher rate may be taken b}- special agreement between the parties. TO FIND THE INTEREST ON $1 FOR ANY GIVEN TBIE. As 6 per cent, is easier to reckon than any other rate in common use, the following rules and calculations are based on that rate ; and when no rate is specified, 6 per cent, is understood. YEARS. At 6 per cent, a year, what should be paid for the use of $1 for 2 years? 3 years? 5 years? 10 years? What for 1| years? 2| years ? 1| years? 3i years? 71 years? MONTHS. As the interest on $1 for 1 year, or 12 montlis, is 6 cents, it must be \ cent for a month, or one half as many cents as there are months for any given time. What is the interest on $1 for 6 months? 8 months? 3 months? 9 months? 15 months? 20 months ? 25 months ? 1 year and 6 months ? 2 years and 5 months ? 4 years and 9 months ? DAYS. At \ cent, or 5 mills, per month of 30 days, the inter- est on $1 is 1 mill for every G days. What, then, is the interest on $1 for 12 days? 18 days? 24 days? 3 days? 9 days? ISdaj-s? 4 days? 7 days? 11 days? 14 days? 17 days? 33 days ? 29 days ? 129 BOOKKEEPING. I a 4 1 a 5 1 a 8 1 (t S ti o a A SllOKT METHOD OF KEL'KOMXG INTEKEriT, ETC. At 6 per cent, any sum of money will i/ouhle m 200 months. For if the interest on $1 is ^ a cent a month, in 200 months it must be $1. Tliorefore, the interest on ani/ principiil at G per cent., foi- 200 mouths, is equal to the principal. " 50 " " II ^Q « (( H 05 a It " 10 " " II 9 u II Now, since the interest on any principal, at 6 per cent., I'or 2 months, is lio, or 1 per cent., of the {)rinci- pal itself, it can therefore be i'ound l^y simYily pointiitij off two Ji (J arcs from the rujld of the dollars. Rule. — Find the interest for 2 montlis hy ^9oi'«fG AVERAGING OF ACCOUNTS. Case I. DIFFERENT DATES, BUT EQUAL TERMS OF CREDIT. RpLE. — (1) Multiply each hill by the number of days between its oiun date and the earliest date in the account. (2) Divide the sum of the products by the sum of the bills. (3) The quotient added to the earliest dcde luill give the average date of sale. (4) Tlie term of credit, added to the average djxte of sale, will give the average due. Example 1. When should the following account be settled, all the goods having been sold on 4 months' credit? Ans. Jan. 26, 1859. operation. 1858. Sept. 1. Mdse. $15 $15 " 21. 40 40 X 20 = 800 Oct. 1. 50 50 X 30 = 1500 " 12, " 20 20 X 41 = 820 125 )3120(24if2 = 25 Sept. 1 + 25 = Sept. 26. In the above operation we proceed as if each of the several sums was due at its date ; and as Sept. 1 is the earliest, we assume that date as the most convenient one from which to reckon the time. Then, supposing to-day to be the 1st of Sept., the first bill is not mul- tiplied, because it is due now. But each of the other bills is multi- plied by tlic number of daj's between Sept. 1 and its own date, " the time to elapse before it is due," acoordinj; to the rule. Sept. 26 is the average date of the sales, and the whole amount, $125, should be paid 4 mouths from this date, or Jan. 20, 1859. If days of grace are allowed, they should be added to Jan. 20 ; but grace is not generally allowed ou accouuks. A four-nionth Note for the payment of the above should be dated Sept. 26, 1858. 2. Sold goods, per statement below, on 6 months' credit. When should the account be settled? 1858. Oct. 4. " 23. Nov. 8. " 15. " 25. Dec. 7. Mdse. $163.85 11 49.16 u 190.00 (( 274.63 u 68.24; a 152.93 1 (164) (49) (275) (68) (153) Ans. May 9, 1859. Note. — It is enough in the operation to express the several sums in whole dollai-s, 50 cents or more being called another dollar, and less than fifty omitted. But in the amount the cents must be added as they really are. By this means a great many figures are saved, and the same result obtained. 3. I have bought goods, per statement below, on 4 months' credit ; and I wish to give in payment a Note pay- able 4 months from its date, without grace, that shall fall due on the same day on which the account should be paid. What should be the date of the Note? 1858. Sept. 3d, $123.15; 8th, $145.20; 18th, $167.19. Oct. 5th, $69.30; 6th, $327.33 ; 16th, $156.72. " 27th, $78.29. Nov. 6th, $343.42; 23d, $47.60. Dec. 9th, $96.51: 16th, $154.64; 23d, $38.83. 29th, 7.19. Ans. Oct. 23, 1858. vi-i- BOOKKEEPING. 4. Sold Mdse. on 3 months' credit, as follows : 1858. July 5th, $357.09 ; August '20th, $158.85 ; 28th, $178.52; Sept. 15th, $161.75; 24th, $378; Oct. 13th,S184.17; Nov. 25th, $75.43; Dec. 10th, $87.50. In payment, I received a Note on demand, dated Dec. 7th, 1858. What was the amount of the Note, at 6 per cent.. May 22, 1859 ? Ans. $1624.80. XoTE. — The above examples may also be performed bj first finding the date at which each bill becomes due, by adding its term of credit to its date, and then using these new dates to find the average due instead of the average date of sale. But the method given above is simpler, and the difference is generally of no value in the results. They may sometimes vary one day, owing to the effect of Leap year. Case II. DIFFERENT DATES AND DIFFERENT TERMS OF CREDIT. Goods of the same quality are often sold at different prices, according to the length of credit given ; and the terms of credit are sometimes extended in particu- lar cases, rather than to reduce the prices. Rule. — First find the date at ivhich each of the hills becomes due. Then multiply each bill by the number of days between the date at ivhich it is due and the earliest date at ivhich any bill becomes due, and divide the sum of the products by the sum of the bills. Average the following account. July 1, Mdse. (@ 2 months), 176.10; Aug. 7, Md.se. (@ 3 mouths), $45.67; Sept. 15, Mdse. (cas'n price), $81.33; Oct. 20 (@ 2 months), $59.71. T34 OPERATION, July 1 + 2 months = Sept. 1, $76. Aug. 7 + 3 Sept. 15 Oct. 20+2 = Nov. 7, 46 X 67 = 3082 = Sept. 15, 81 X 14 = 1134 = Dec. 20, 60 X 110 = 6000 Sept. 1+41 days = Oct. 11 )10816(41 Ans. In this operation we first find when each of the bills becomes due ; and then, taking the first date at which any bill is due as the point from which to count the time on the several bills, we proceed as in Case I. The first bill becomes due on the 1st of September, and from Sept. 1 to Nov. 6 there are 67 days ; from Sept. 1 to Sept. 15, 14 days, and to Dec. 20, 110 days. Multiplying the several bills by these numbers, and dividing the sum of the products by the whole amount of the bills, the quotient is the time in days, which are to be counted from the earhest date. 2. When was the following act. due, per average? 1858. January 8, Feb. 22, March 4, April 19, May 1 , June 17, To Mdse. (6 mos.), (6 mos.), (Cash), (6 mos.), (4 mos.), (Cash), $144.25 74.95 160.37 249.84 60.86 119.12 An^. July 22, 1858. BOOKKEEPING 3. What is the average date for the payment of the following account? Dr. Warren 31. Baker. 1858. July 5, Aug. 1, Sept. 17, Oct. 11, Nov. Dec. 24, oo To Mdse. (2 mos.) (Cash) (Cash) (2 mos.) (2 mos.) (Cash) $171.19 142.21 210.35 321.94 213.67 15G.88 Ans. Nov. 6, 1858. COMPOUND EQUATIONS. Accounts generally have both a debit and a credit side, and these rules, to be valuable, must be applicable to such accounts, to determine when they are due. The question to be solved in Compound Equations is, When shall the balance of the account be paid ? For if A owes B $500, and B owes A $400, it is not neces- saiy for each actually to pay the other the full amount of his debt ; but if A pays B $100 at the right time, the account is properly settled. Rule. — (1) Average each side of the account sepa- rately, as in Cases I. and II. (2) MuUiphj the amount due at the earlier average date by the number of days between the two average dates. (3) Divide the product by the balance of the account, and the quotient will be the equated time in days, to be counted from the later average date. (4) If the. larger amount is due first, count back ; but if the larger amount is due last, count forward frorn the later average date. Example." — Suppose the last two examples in the preceding Case to be the two sides of my account with A. J. Robinson, viz. : the second to be the Dr. and the third the Cr. side. In whose favor is the balance, and when is it due? Ans. May 30, 1859. Dr. A. J. Robinson. Cr. 1858 July 22. Due, $799.69. 1858 Nov. 6. Due, $1216.24. OPERATION. $1216.24 — 1799.69 = $416.55 = Balance of the acct. From July 22 to Nov. 6 = 107 days. $800 X 107 = 85G00 ; 85600 ^ 417 = 205. Nov. 6, 1858 -f 205 days = May 30, 1859. 2. Average the following account. Sold W. H. Seavey, on 6 mouths' credit: 1858. March 10, Mdse., $409.37 ; March 24, Mdse., $315.62; April 14, Mdse., $245.56; May 20, Mdse., $125.16; Juno 26, Mdse., $86.40. Received of him, — (Mdse. at 6 mos.), 1858. July 8, Cash, $300; Aug. 2, Mdse., $320.88; Sept. 7, Cash, 250 ; Oct. 12, Mdse., $137.4l'. Ans. April 14, 1858. Note. — It may seem stmnge to the beginner that the balance of an account should be due before all the transactions have taken place. But although the account cannot be settled before the debts have been created, yet when the account is settled, the interest may bo com- puted on the BALAN-CE from date of its average due, till the time of payment. 135 A TIME TABLE, To fitid the exact number of months, or days, from any day in one month to the same day of any other month, not viorc than a year distant. No. of Mouth. 1 2 3 4 5 G 7 8 9 10 11 12 Days in a Month. 31 28-9 31 30 31 30 31 31 30 31 30 31 From To JAN. FEB. MAR. T ( Months. 12 1 2 January, -l t~, .,^5. j,i rn j Days. 365 31 59 APR. 3 90 MAY. 4 120 JTTNE. 5 151 JULY. 6 181 AUG. 7 212 SEPT. 8 243 OCT. 9 273 NOV. 10 304 DEC. 11 334 T-, ( ^Months. 11 February. - -n 001 ( Days. 334 12 1 3G.5 28 2 3 59 89 4 5 120 150 6 181 7 212 8 9 242 273 10 303 nr ( Months. ^^^^^'"- i Days. 10 306 11 337 12 1 3G5 31 2 3 4 61 92 122 5 6 153 184 7 214 8 245 9 275 April. ] JJ""^'^^" j Days. 9 275 10 30G 11 334 12 365 1 30 2 61 3 91 4 122 5 6 153 183 7 214 8 244 Mat. -! j;«"*'^^^- ( Days. 8 9 245 276 10 304 11 335 12 365 1 31 2 61 3 92 4 123 5 1 C 153 1 184 7 214 T.rxTT, ( Months. 7 J"^^- j Days. 214 8 245 9 273 10 11 304 334 12 365 1 30 2 61 3 92 4 122 5 153 6 183 July. \ Jf'^^*'^^- ( Days. 6 184 7 215 8 243 9 274 10 : 11 304 1 335 12 365 1 2 31 62 3 92 4 123 5 153 A,,. . ( Months. 1 5 ^"«^-''"- ■( Days. 1 153 6 184 7 212 8 243 9 273 10 304 11 334 12 1 1 365 1 31 2 Gl 3 4 92 122 September. { ?J""*'>^- ( Days. 4 122 5 153 6 7 181 212 8 9 242 273 10 303 11 12 1 334 365 30 2 61 3 91 October. | ?;°°*^- ( Da3's. 3 4 92 123 5 151 6 7 182 212 8 243 9 273 10 304 11 335 12 365 1 31 .2 61 November, j !J«"^'^«- 1 Days. Gl 92 4 120 5 151 C 181 7 212 8 242 9 273 10 I 11 304 1 334 12 1 365 30 ■5— • j d';"""- z\ 2 62 3 4 90 121 5 6 151 182 7 212 8 243 9 274 10 304 11 335 12 365 EXPLASATIOSS. — To flnil the numliir of months or (hiys from April 1 to July 1, look for April in tho ci)lumn at thy left, unrl f lUow th;it lint; to tht- richt, till und r July, :U the top, will be foUTnl 3 f >r the mouths, nnd 01 1>t the ihiys. The time from July 1 to "the i»receUmg April 1 is fjuml in the same manner ; that i?, proceed from the carlii-r tj the later date. llow many days from IMarch 10 to Sept. Ifi? Opposite Jlarch, and under September, you will find 1^4, to which add 6, the number from the lOth to the 16th, and the whole number will be 190. Ans. ■\That is the number of days from June 1-2 to Auj^ust S ? Opposite June, and under August, find 61, which is the number from June 12 to Aupist 12, from which siilitrnrt 4, because the second dale is 4 days earlier m the month than the first, and the answer is 57 days, or 1 month and 27 days. now many days from Jan. 1 to March 1 ? From Jan. 1 to JIarcIi 1, bv the Table, there are 59 days i for there arc 30 aBcr the Ist in Jan., 2S ia Feb. (in Lc.ap-Ycar 29), and 1 in March. 30-(-28+l=59. Jni. lie BOOKKEEPING. REMARKS. 1. In fiuding the number of days bctwccu two dates, the first is omiiied, and the last is idcluUed. Thus, lium July i to September 1 there are ii'J days ; for there are 27 in July, after the 4th, 31 in August, and 1 in Sep- tember ; aud 'ZT -^cl -\-l = 59. 2. In leap year February has 29 days ; and when the number of the year is divisible by 4 it is leap year, as 1852, 1C:G, 18G0, &c. When, therefore, the end cf February, in a leap year, is ii ludcJ between the two dates, one day must be added to the number given ia the table. 3. From any day in one month to the same day in the next is calleil a month, witiiout regard to the exact number of days. Thus, from the 1st of Jauuai'y to the 1st of February is one month ; and from January 12 to March 12 is 2 mouths. 4. When the time between two dates is to be expressed in months and days, the number of whole months may be ascertained by counting as directed in Remark 3, to which add the days remaining. 5. When a fractional part of a month is to be expressed in days, the whole month is considered as 30 days, a half 15, a third 10, and so on. G. Wh3n the two dates are more than a year apart, the time is found for the part of a year ; and then the whole years, or the number of months or days in tho whole years, arc added to the first answer. Thus, find the days between .\pril 7, 1858, and October IC, 1850. From April 7 to Oc- tober IG is 192 days ; and 192 -\- 3G5 = 557 days, or 1 year, G months, and 9 days. 7. When the time of a Note, Draft, &c., is specified in days, it must not be reckoned in months; for CO days, 90 days, &c. , are not exactly the same as 2 months, 3 months, &c. 8. Notes, &c., fi'.lin; due on Sunday, or any legal holiday, must be paid on the previous day. 9. To find the date at which a pven number of days will expire, counted from a given date, look in the table fir the given number, and over it will be t!ie month sought for ; and the day will be the same as the given date. If the given number is not in the table, take the next less number, and proceed accordingly, adding the excess. EXAMPLES. 1. How many months aud days from June 26, 1856, to September 1, in the same year 7 Ans. 2 months aud 7 days, or Gt> days. 2. AVhat is the time from January 1, 185G, to March 17, 185G7 Alts. 7C days, or 2 mouths and IG days. 3. How many days from December 15, 1855, to February 23, 1856 ? Alls. 70 days. 4. How many months and days from November 13, 1858, to JIarch 1, 1860? Alls. 15 months and 17 days. 5. What ia the time from December 30, 1858, to Feb. 23, 18C1 ? Alls. 2 years, 1 mouth, 24 days. G. On what day will a Note be due which is dated May 12, payable in 2 months? Ans. July 15. 7. A Note was dated October 12, 1851, payable in 90 days. AVhcn was it due ? Ans. January 13, 1852. 8. When should a Note be paid wliich is dated December 30, payable in 2 months, without grace ? Ans. Last day of February, — 27, 28, or 29. 0. A Draft was drawn on the 1st July, 1858, pay.ablo 60 d.ays from date. When was it due ? Ans. Sept. 2. 10. A Draft, dated May 7, payable 30 days and grace, after sight, was accepted May 18th, 1858. When was it due? Ans. June 19. 11. A Note, (a) SO days, was due at a bank on Friday, July 3, 1857. What was the date of it? .^"s. May 31, June 1 or 2. 12. -A Draft, payable 30 days and grace, after sight, was due June 7. Vbit was the date of the acceptance? Ans. Jl.ay 5. 13. A Note, (a> 60 days, fell due on Saturday, Mar. 1. What was the date of it ? .^«s. Dec. 28, 29, or 30. 14. A four-month Note, without grace, was payable at a bank on Satur- day, Feb. 27. Wliat w.'is its date ? Ans. Oct. 27, 28, 29, 30, or 31. 15. When should a two-month Note be paid which was made on Sun- day, April 13, 1856? 137 BOOKKEEPING. EXPLANATION OF BUSINESS FORMS. THE BILL-HEADING. This is the common form for a Bill of Parcels, written at the time of the sale, and given by the seller to the buyer. If the payment is not made at the time, the signature is omitted ; but if the payment is made, the bill should be receipted and signed thus: If the payment is received by a clerk or other person who is not fully authorized to sign the name of the firm, he should add his own name, thus : /f ©/. SB'/ Tlie Bill, after it is receipted and signed, is kept by the purchaser, as evidence not only of the payment, but also of the time, price, quality, y writing across the face of it, usvially with red ink, tho word " Accepted," with the signature of the party accepting it; and if payable at a certain time "after slight," the date of the acceptance should also be added. Thus : If A. B. accepts a Draft on the 10th of Sept., 1858, payable 60 days after sight, the form of his acceptance would be : '^Accepted, Scp>tcmher 10, 1858. • ©-^ ^." The Protest for non-payment of a Draft or Bill of Exchange is similar to that of a Note ; but a full state- ment of tho process, and of tho laws and customs re- lating to Bills, would occupy more space than can profitably be devoted to it in this work. JfifU maduif. U^^^^v, , ./,4f, /^/4.:.> '^^yf-l^i ica-^/. ^/y ■ J. l'iZ-in^tz/'€^J !'/ ■ '.y^ij/, / y '/ / ■' 7 7-y-/ '.. /■ / s/.V '. «.v/,v '' U'<>/i^:i-t^c^'^<7^i '^^U^c^y(j^.yi> rr '' -/ V ^L'-^t-^y V^W^^-^^z^'^- i-/ ../■^(r/^L-ay^^.,^i>-7>i' ■ /■^f-^^-<- /t-au- ■<:^^-(^■ ^^^/^y/i' / / /S /iri'fiftt on .^iX-OH/lt . //■3. 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