HBH presented to the UNIVERSITY LIBRARY UNIVERSITY OF CALIFORNIA SAN DIEGO by JUDGE J.M. CARTER BRYANT AND STRATTON'S COMMON SCHOOL BOOK-KEEPING; ' EMBRACING SINGLE AND DOUBLE ENTRY. CONTAINING SIXTEEN COMPLETE SETS OF BOOKS. WITH AMPLE EXERCISES AND ILLUSTRATIONS. "PRIMARY SCHOOLS -AJSTD BY H. B. BRYANT, AND II. D. STRATTON, ro\ VDERS OF THK INTERNATIONAL CHAIN OP COMMERCIAL COLLEGES, LOCATED IN PRINCIPAL CITIES OP THE U. 8. AND THE DOMINION OF CANADA, AND S. S. PACKARD, RESIDENT PRINCIPAL OP THE NEW YORK CITY MERCANTILE COLLEGE. IVISON, BLAKEMAN, TAYLOR & CO., NEW YORK AND CHICAGO. 1872. Entered, according to Act of Congress, in the year 18<1, by BRYANT, STRATTON & PACKARD, In. the Clerk's Office of the District Court of the United States for the Southern District of New York. LHOTKOTTPKD T SMITH & McDoroAt 82 & 84 Beekman st PREFACE. THAT there ia & demand for a primary work on Book-keeping, which, while it is specially adapted to the comprehension and wants of a younger class of students at our public and private schools, shall seek to enforce, in a philosophical manner, the abstract theories of the science, is assumed by the authors of this treatise, not solely as the basis of an apology for producing a new book, but as the result of careful inquiry among teachers and educationalists, not less than a faithful survey of the field of literature compassing this end. Experience has often proven that less tact and labor are necessary in discovering a want than in supplying it, and the present effort whether or not the public may pronounce it successful, is made in full view of this fact To state an abstract proposition, which the unerring testimony of figures will render impregnable is no difficult matter ; but to give vital force to such a statement in clear and satisfactory analyses, whose sequences shall take a practical hold of minds not schooled in tho processes of reasoning, is an undertaking which may well cause the conscientious author to pause upon the threshold of his well-meant endeavor. There are minds so constituted as to be able to grasp intuitively, and with unerring certainty, the grander truths of a mathematical problem, discarding alike the minor points of reasoning and illustration, and tho pretentious " rules " which, though too often but diluted axioms, are kindly intended to aid the faltering steps of the less self- reliant ; but these are the exceptions and not tho rule ; and hence, experience in teaching has shown us that in the majority of cases, the bare statement of a princi- ple, however fundamental and vital, cannot be alone relied upon for the thorough work of instruction. The labor of a teacher is necessarily one of endless variety and repetition. " Lino upon line, and precept upon precept " is the motto of ha profession and the signet of his success. "While it is not the privilege of an author to know, by actual contact, the individual wants of those whom ho aims to instruct, he must, nevertheless bo possessed of a general knowledge of these wants, and address himself conscientiously to the task of supplying them. The authors of this treatise claim for it tho distinctive merit of thoroughness, both in the statement and elucidation of principles. In its preparation, two points were assumed : first, that the class of students who would gather instruction from its pages were already learned in the idioms of their own language, no less than hi 3 PREFACE. the fundamental rules of Arithmetic; and second, that the teachers who would adopt it as a text book, would make themselves familiar with the general scope of its teachings, no less than the details by \\hich its prime theories are enforced. In order that a text book should accomplish any certain result, there should exist a perfect understanding between the author and the teacher, each of which has his own peculiar sphere of labor into which the other cannot enter. The author deals in general principles and their most palpable applications, without being able to anticipate the particular and varied wants of the student, or to supply those wants, even if he knew them. The teacher on the other hand, is the living exponent of the dead letters and forms which, to unpractised eyes are surrounded with a mazy mystery which can be dispelled only by the human voice. His is the sacred office of an interpreter, the duties of which demand of him not only a thorough apprecia- tion of the thought interpreted, but an intimate knowledge of the bearing and capacity of the mind to which he discloses the hidden lore. In the multiplicity of exercises given, the teacher will find material for an almost indefinite variety of illustrations, and it should be his special care that the student be not permitted to pass from one set to another without fully mastering the subject, both in its general and special application. The sets are short and definite in their purpose, the object being to keep con stantly in view the result of the student's labor ; for, while it is true that in no way can the science of Accounts be so quickly and thoroughly enforced as in showing at once the result of each separate transaction, as regards both the persons and causes affected, it is no less so that the fundamental theory of the science can best- be made apparent by frequently exhibiting the general result of all the transactions. The prominence which is given to Single Entry will, we trust, satisfy the public that we are not prepared to enter into the popular cry of authors and teachers that no system of Accounts is worthy of thought that does not fully carry out the test of equal debits and credits ; for while we are free to express our decided preference for Double Entry, we cannot, either in justice to our own convictions, or the pre- judices of the public, ignore the points of excellence, or fail to suggest such improvements as are deemed important to a system which will be used, to a greater or less extent, to the end of time. In short, it has been the earnest aim of the authors to produce a book which, though its external appearance would not disgrace the shelves of the Bookseller, its internal merits will not permit it to remain there. It is a book designed for use, and as such is respectfully submitted. BRYANT, STRATTOKT & PACKARD. 18 COOPER INSTITUTE, NBW YOBK, July 1, 1861. CONTENTS. PART I. SINGLE ENTRY. ABBREVIATIONS AND CHARACTERS, \ 7 PLAN OP THE WORK, . ... . . " . . . . 8 INTRODUCTION TO PART I. . . ^ n 17 QUESTIONS FOR REVIEW, 18 SET I. Initiatory Showing the use of the Books. Remarks ....". 20 Day Book 21, 22 Ledger 23 25 Exercises for the Learner and Questions for Review . . 26 SET II. Retail Merchandise. (Prosperous.) Remarks 28 Day Book ; . ;. : . '. " _." . . . , 2935 Index to Ledger 36 Ledger 37 40 Cash Books 41 44 Statement ... 45 Examples for Practice 46 Exercises for the Learner (Second Series.) ... 47, 48 Questions for Review ....."... 48 SBT III. WJiolesale Dry Goods. (Adverse.) Remarks 50 Day Book ... . . . . . . . 5154 Index to Ledger . 55 Ledger : 56 59 Sales Book * . . . * , 6063 Cash Book .. . . . . .- . 64, 65 Bill Book ' . . ... . , . 66 Statement 67 Examples for Practice 68 Exercises for the Learner (Third Series.) . . . . 69, 70 SET IV. Cabinet Ware and Furniture. (Prosperous.) Remarks . ' 72, 73 Day Book .......'.-.. 7477 Sales Book . . 78^-83 Ledger 8487 Cash Book 88, 89 Time Book 90 Statement 91 Examples for Practice 92 Exercises for the Learner (Fourth Series.) . . . 93 95 Questions for Review 96 5 CONTENTS. PART II. DOUBLE ENTM. PAGES. INTRODUCTION TO PAET II. 99 102 THE SCIENCE OF ACCOUNTS. Theory of the Ledger . . . . . . . . 103, 104 Debits and Credits . . ' 105 Principles . . 1Q6 Questions for Review . 107 SET I. Produce Business. (Initiatory.) Remarks . . . 110 Day Book ..." Ill, 112 Journal . 113 115 Ledger . . . . '. . . . . . 116118 General Statement 119 121 Examples for Practice . S 122, 123 Exercises for the Learner. (First Series.) .... 124, 125 SET IL Grocery Business. (Prosperous.) Remarks 128 Day Book . . . ... : .; . . . 129132 Journal . . . ... . >. . -. ^ 133 135 Ledger ;. 136 140 Balance Sheet .......... 141 Closing the Ledger 142147 Description of Balance Sheet . . . . . . 147, 148 Examples for Practice 149 Exercises for the Learner. (Second Series.) . . . 150, 151 Questions for Review 152 SET HI. Wholesale Dry Goods. (Adverse.) Remarks 154 Journal Day Book 155 161 Ledger 162167 Statement . 168, 169 Examples for Practice and Questions for Review . * : 170 SET IV. Gentkmeri's furnishing Business. (Prosperous.) Remarks 172 Journal 173 Cash Book . . . ... .%" . . . 174, 175 Sales Book :. 176, 177 Ledger 178181 Exercises for the Learner. (Fourth Series.) . . 181, 182 PRACTICAL HINTS. Order and Neatness . 183, 18 1 Proficiency in Mathematics ...... *- v . 184, 185 To detect Errors in Trial Balance 185 187 Resources and Liabilities 187, 188 Exchange . . . . . . . . . . 188 192 Questions for Review 192 6 USED IN THIS WORK. A] A Ac't. .... Account. Ain't. . . .Amount. Ans. . . . .Answer. BBREVIATIOI E ea. . ... .Each. JS. M Mar March. Jfdse. . . .Merchandise. Jfo Month. E. E. . . . Errors Excepted. EmVd. . . Embroidered. Ex Example. Apr April. Ass'fd. . . Assorted. Aug August. B Bed Balance. Mgy Mahogany. N No Number. Exch. . . . Exchange. Exp Expenses. F Fav. . . . .Favor. Nov November. B.B. BUI Book. Bbls Barrels. Fig'd.. ..Figured. Pnl Tff\Y\r\ 0. I. B. .Outward Invoice Book. P B. Pay.. Bills Payable. B. Rec. . . Bills Receivable. Blk Black. For'd Forward. Fft Freight. G Gal Gallon. H Hhd.. . . .Hogshead. 1 I. B Invoice Book. Ins Insurance. Inst. ... Instant. Bo't. . . . .Bought. Brei't. . . .Brought. B. W.... Black Walnut. c Cap Capital. C. B Cash Book. Co Company. PayH. . . . Payment. P. C. B. .Petty Cash Book Pd Paid Pkg Package. Pr Pair. pr.,per..Ey. Prem. . . . Premium. R Redd. . . . Received. R. W.... Rosewood. s S.B. Sales Book. Sept.. . . .September. Ship't. . .Shipment. Sunds. . .Sundries. Y Yds Yards. Yr Year. Com . . . .Commission. Const. . . . Consignment Int Interest D Dec December. Inv Invoice. Inv't . . . .Inventory. J Jan January. L Ibs Pounds. D'ft Draft. do. .... .The same doz. Dozen. Dr. Debtor. ds. Days. < @..At. % ..Account. %.. Per Cent. $ . . Dollars. ... Cents. L. F. Ledger Folio. OHA R ACTERS .. Pound Sterling. 5. ..Shilling. y. .Check Mark. + . . Sign of Addition. . . Sign of Subtraction. 7 >. X . . Sign of Multiplication. =: . .Sign of Equality. I 1 . . One and one fourth. 1*. .One and one half. P. .One and three fourths. PLAN OF THE WORK. THE course of instruction is synthetical, commencing at the foun- dation and working upward, making each principle and illustration the opening wedge to higher developments of reason and applica- tion, and enforcing at every stage, the practical bearings of the required labor. The Book is divided into two parts, Part I being devoted to Single Entry, and Part II to Double Entry. Each part comprises eight distinct Sets of Books, four of which are written out in full, and four given in the form of memoranda for the student to arrange after the models given. The first Set in Part I is intended solely to show the use of the principal books, Day Book and Ledger. Set II begins to deal in results. Set III commences with a capital, representing a General Merchandise business, shows the use of the necessary auxiliary books, and enforces the theory of loss and gain by comparing the capital at commencing with that at closing. Set IV represents a Furniture business, introducing the necessary prin- cipal and auxiliary books. The peculiar feature of this set is the admitting of a new partner, and continuing the business in the same books. Set. I, Part II, is purely initiatory, introduced for the purpose of enforcing the fundamental principles of the science. Set II continues the business of Set I, but enlarges it, and gives a wider scope of transactions, and more fully enforcing the theory and pro- cesses of producing results. This set is given in colors, as affording a more exact niodel for imitation. Set III contains the same trans- actions as Set III, Part I, and is presented for the purpose of show- ing the exact differences between Single and Double Entry. Set IV is a practical set, using all the necessary books of original entry as principal books ; posting from them to the Ledger, dispensing with the Journal except for such entries as are not recorded in the other books. This set exhibits, in the most decided manner, the economy and symmetry of Double Entry. The intermediate " Exercises .for the Learner," and " Examples for Practice," are relied upon to make the theory and practice of the different sets effective. The " Practical Hints," at the close, embrace suggestions which should not be overlooked. PART I. SINGLE ENTRY. PART I. SINGLE ENTRY INTKODUC TION. 1 IN estimating the true basis of any science, it is well, if possi- ble, to follow the line of its history, and become familiar with the order and processes of its development. 2 This is especially true of the science of Book-keeping, for although it is purely a branch of mathematics, and as' such fully entitled to the favor and considera- tion of scientific men, yet at no period of its history bus it ranked in the estimation of scholars, with the more complex and abstract sciences ; 3 which fact is owing, mainly, to a misconception or under appreciation of its dignity and importance as connected with the actual duties of life. It is lamentably true that men will grow enthusiastic over the solution of a problem in Euclid, or the effect of a combination of movements upon a chess-board, who are ignor- ant of the first principles of this the most beautiful and practical of sciences ; and are content to pass through life, receiving and appro- priating the reputation belonging to men of science and erudition, while they are consciously and persistently unable to decide the simplest question in partnership settlements, or to appreciate the well-established theory of debits and credits in any of its practical applications or philosophical abstractions. It is difficult to account for this strange inconsistency except upon the ground that Book-keeping is a practical science, and as such is suggestive of rude contact with actual business life. It has too much of " the smell of the shop," and mixes too promiscuously with unpoetic bales, boxes, and barrels. It is, doubtless, this restricted view of the science which, more than aught else, has deprived the world of sufficient data from which to compile its history, and left 11 INTRODUCTION, to the imagination and logical inference what had else been a con- o o nected series of recorded facts. Necessity, it is said, is the mother of invention ; and as all science is the immediate result no less of invention than investigation, it may with truth be said that science is the offspring of necessity. That the science of Book-keeping is essentially so will be apparent in the commonest application of its principles. 4 The very condition of life is ^cant, and the plans and purposes of life aim at the supplying of want. 6 This necessity of our being begets industry and frugality, and lays the foundation Of all real progress in arts and civilization. 6 To supply the necessities of life the earth, through careful and patient toil, is made to yield her abundance, and the various chan- nels of human enterprise and skill are laid under perpetual contri- bution. 1 The Avants of man are so numerous, and the means of supplying them so various, that a system of mutual dependence and reciprocal labor becomes not only economical, but necessary ; and thus, from the very first enforcement of the divine law, " In the sweat of thy face shalt thou eat bread," has there grown up a division and classi- fication of labor and wealth. 8 The tiller of the soil, whose products supply the necessities of hunger ; the manufacturer of fabrics, Avhich are to clothe the body ; the artificer, whose cunning Avorkmanship gratifies the more refined wants and tastes ; the man of science, who supplies food for the mind ; the spiritual teacher, who ministers to the higher develop- ment of soul faculties, and the common laborer, who lifts frOm onr shoulders the drudgery of baser toil, are each dependent upon all the others for the sum of material and intellectual comforts Avhich minister to their individual Avants ; 9 and a mutual exchange of these comforts constitutes the foundation principle and impulse of that grand system of economy Avhich AVC call BUSINESS. 10 To facilitate these exchanges it has been found necessary to establish some regular standard of value by Avhich the comparative Avorth of commodities may be adjusted. n This standard is usually represented by certain precious metals, usually gold and silver, Avhich also serA r e as a medium in effecting the exchanges. In all civilized countries this metal is divided into convenient particles, and stamped with its appraised A~alue, and is used, either really, or by implication, in all commercial dealings. 12 The particular necessity of Book-keeping is to preserve a record 12 INTRODUCTION. of such exchanges as would otherwise be trusted to memory ; although a thorough application of the science embraces other most important results. Its more simple and restricted use may be easily shown. Suppose, for example, that John Smith is a farmer, and Thomas Jones a manufacturer ; that John raises as much food on his farm as is necessary to supply his own wants and those of his neighbor, while Thomas makes clothing sufficient for the demands of both. It is now the easiest thing in the world for both John and Thomas to have food and clothing, simply by exchanging with each other their surplus products. 13 An exchange of this kind would possibly need no record ; and were this the extent to which commerce had been carried, it is scarcely probable that obstinate brains would have been puzzled with the dry formulas of Book-keeping. But, suppose, further, that Thomas should happen to be in immediate want of some of his neighbor's surplus food, without the ability, at the time, to render an equivalent in his own products. He says to John, " I want food, and cannot pay for it now, but if you will confide in my honor, I will surely return you an equivalent when I have completed work now in progress." The conditions being satisfactory, the/bo<7 is conveyed from John to Thomas, and the promise from Thomas to John. If John is blessed with a faithful memory he may be able to retain the facts connected with this transaction, and thus constantly bear in mind that he owns a cer- tain quantity of clothing, which his neighbor is to bring him at a stated time. I4 But suppose he is not willing to trust to his own memory, nor to that of his neighbor, but desires something tangible which shall at least represent this prospective property a record which will not fade with the memory, but tfill stand for the benefit of whom it may concern, even in the absence of those having a per- sonal knowledge of the facts. The person relied upon to fulfill this promise is Thomas Jones, and 1S the most natural form of record would be to write his name in a book kept for that purpose, and state the fact underneath it, thus : THOMAS JONES Bought of JOHN SMITH, a quantity of food, valued at Ten Dollars, for which he agrees to pay a quantity of clothing of equal value, on [naming the date of pay- ment] 14 A record like the above would be intelligible as containing all the facts, and affording to John Smith a tangible evidence of prop- 13 INTRODUCTION. erty which he owns, but which is in the hands of another party ; and if this single transaction comprised all of this nature it would scarcely be worth while to attempt a more concise or symmetrical record. " But as dealings of this kind may be very frequent, not only with Thomas Jones, but with other parties, it may be well to ascertain if some more satisfactory and less cumbrous method may not be adopted. 18 The simple fact expressed in the foregoing record is that Thomas Jones owes John Smith ten dollars worth of clothing. "The only events which can vary this fact are, the payment of the debt, or a part of it, overpaying it, or adding to it by subsequent purchase without payment. 20 There are, really, but two condi- tions, as pertaining to persons with whom we have dealings on credit, viz. : that of owing, and being owed. 21 These two condi- tions are exact counterparts, and so far as they are equal, will can- cel each other. 25 It w r ill, therefore, be easy to arrange these opposite facts under the names to which they pertain in such way as that not only the facts themselves, but their relative results, may be ascertained at a glance. For example : DR. THOMAS JONES. CR. Dale. lie omt vt. I>,,'h. Clt. Date. Wt trt Aim. Stilt. Ctt. 1861 Jan. Mar. 1 1 To IBM. Flour u 10 Bush. Wheat. 10 12 50 Jan. Apr. 15 1 By 4yds. Cloth " Cash 10 5 This form has been found by experience to be both comprelifin- sive and practical. B It is called an account, and, as will be readily seen, 24 is a statement of dealings with Thomas Jones. 58 On one side are arranged the separate amounts of his indebted- ness to us, and on the other of our indebtedness to him. 26 The difference or result will be a net amount owing either to us from Thomas Jones, or to Thomas Jones from us. In other words, if Thomas Jones owes us more than we owe him, the indebtedness is in our favor, and may be reckoned as a part of our property ; while, if we owe him more than he owes us, the indebtedness is in his favor, and should be reckoned among our debts. The facts shown 14 INTRODUCTION. in the account given may be thus analyzed : M On the first of J.imi. ary Thomas Jones purchased of us 1 barrel of flour at $10; ana on the 15th of January, sold us 4 yards of cloth for enough to cancel the debt. The amounts on the opposite sides of the account will now exactly balance each other, and the result is the same as though the exchange had been made at once. Again, on the first of March he purchased 10 bushels of wheat, for 012 50 ; and on the first of April pays us in cash $5. This leaves a deficiency in his account of the difference between $12 50 and $5 ; and we say that Thomas Jones owes us $7 50. We have thus a tangible record of property, which if left to memory might be forgotten, and we thus become losers. 38 It will thus be seen that in all cases where exchanges are effected between parties, either of whom is allowed time to perform his part of the contract, some written record of the facts are neces- sary. M This written record constitutes the germ and sphere of BOOK-KEEPING. From the foregoing illustration it will appear that M an account has two sides, a 31 debtor and a creditor / that 8 * upon the debtor side is shown what is owing to us, and M upon the creditor side, what is owing by us ; M that when the debtor side is the larger, the difference will express an amount belonging to us, E6 and when the creditor side is the larger, the difference will express an amount which we owe. M In the former case the account would represent property or resources ; 3 ' and in the latter, debt or liability. 38 In the earlier history of Book-keeping, doubtless this form, or something similar, was deemed sufficient for the purposes of trade, 39 it being absolutely necessary only to have some written evidence of such resources and liabilities as had no other tangible existence, and which it would be unsafe to trust entirely to memory. 40 It is evident, however, that in an extensive credit business, a book of consecutive record, giving a plain and simple account of the business as it progresses day by day, would be of essential service, and it is, therefore, the almost universal practice, particularly among mer- chants and tradesmen, to keep a 41 Day Book, in which are entered transactions as they' occur. An example, showing the form ef this book, and also that of the Ledger, with the transactions properly transferred, will be seen on the following page. INTRODUCTION. DAY BOOK. NEW YORK, JANUARY 30, 1861. Jan. 80 JOHN SMITH, Dr. To 5 yds. Broadcloth @ $4 00 $20 1 50 15 " 30 do Black Dress Silk. 1 25 87 50 "25 do Flannel .....<-*-> 1 (INITIATORY.) DA.Y BOOK .A-HSTD LEDQER. SHOWING SIMPLY THE USB OP THE BOOKS, WITHOUT EXHIBITING A GENERAL RESULT. REMARKS. IN the following set we have the simplest forms known in Book- keeping, viz : ' the Day Book and Ledger. 8 This set is designed to be purely initiatory, and is introduced mainly to exhibit the forms and character of these important books, which will be exten- sively used hereafter. It must be borne in mind that 3 the true purpose of Book-keeping is to preserve a sufficient record of resources and liabilities, to enable the proprietor at any time to ascertain the condition of his business. 4 This purpose is only partially effected in the records which follow, but it is deemed important that this class of property and debts should be clearly understood before proceeding to the others. *A Ledger, in Single Entry, is used to exhibit the relation in which the various persons with whom we deal on account stand to our business, and contains, therefore, only personal accounts, or accounts Avith persons. Inasmuch, therefore, as every entry on the Day Book is posted to the Ledger, 6 the Day Book, also, contains only records which pertain to persons. 7 The Day Book records in Single Entry are direct and simple, first expressing the name of the person to be debited or credited on the Ledger, together with the fact of "Dr." or "Cr.," and next the consideration and amount. 8 These records are then transferred under the appropriate Ledger accounts, and thus exhibit 'the result of the transactions, so far as persons are concerned. The set here shown exhibits but few transactions, and those of the most simple kind, 10 and is not intended to show any general result of the business ; the main object being to set forth the nature and process of the records which are to appear upon the Ledger. The student is requested to note well the form and expression, that he may correctly render the " Exercises " which follow this set, and become prepared for the progressive labor in the succeed- ing sets. 20 DAY BOOK,- SET I. / SO&. <%/ ^aS. <3//e/Me oldei cut af-ove, ameJ ,, ,, 4 SO too 22 SS00 6* 90 00 f> 00 4 00 00 SO/ 300 so/ 73 LEDG-EK -SET I. Sff0 20 ~&. SffO o6+& / 4?' (/ice, on ^ *, ,, SO* / 00 ,, SO ,, &%*6p, ,, SO* S 00 ,, S ,, 38i<>aww4. as c/? s ai, iZOu vyaJn on / c , SO DAY BOOK,- SET II *r f&*i SO $s <7 %, ,, ,, Otote 3!*. 00 3k *. 00 2S* 2 i /SO 2/00 7- 'te-i. aatt&A'/ei., S " / 00 32 (7) C/ 2 00 S SO SS SO 2? SO so 30 DAY BOOK,- SET II. 3 20 SO ,, ,, ,, /J ,, ,, 30 ,, (/-tiki aJ awwe, $0 /.. 31 /?* SO 00 ? 00 3 00 00 40 00 3 "J 33* DAY BOOK -SET II. &V &adn on fc f Qsbaac @/*eveny. ,, ,, ta t^s. QsaAn <*- 33 ~U*, /JO J2 JO , 20* %* SO* 3 00 3 00 4 JO 4 00 32 00 2 00 20 00 2 00 ff 00 Z000 S0 S 00 DAY BOOK,- SET II. 6 u&. 34 ***\\ 3 /0 tyd<>. iS&UHzdefow, @ 4 00 40 00 . 2 00 S2 00 < J 00 /2 00 / ' ,, &&*, 4 00 *i4 anJ <&e*S, f 00 9 DAY BOOK,- SET II. t>0. s Qfa ame, s S a/ -6aian.ee 7 C , s / // / " waj/i // // ^ ^J 30 ,, S3 // // &/ 33 // S2 /x ,, ^ 3 23 St 33\ rt 33 37 LEDGER,- SET II. o. I 38 ^. /. j 3 t? OJ islcau t ,, // 4 /O JO 1S5 05 60 85 05 39 %. 2J JK ^, ^ /O JO ay 27 ty*LJt~ 7 /f *4?ayt 20 // // _6 24 S4 60 18 1 60 LEDG-ER,-SET II. 2; 2? 3 *t ^ 5 -^ ^ 5y G^* ^ J^x waJsi/ 33 33 9 Q?s . zJfiwteei, /ft/ ^// Q <%> ~/&He. ^ ^? ^ / 69 68 7 ^ 40 CASH BOOK,- SET II. iff/ ^/u. ' \5' > iz>mMt*i<* =l en nanaf, Sf00 2 3) ' / / O^ S y S / y y y^ y C/lecetvea fot/ &afeJ -1/nJ ceay, not/ ftcn.e'fj, \Sata fi>i/ eJ&Metiance, T/jj on- f4000, S/J u to J ,, *-i)iayctae on *sft / / Jff / jS / / / S s *Slecetve s *s . / / y >* y iSlecetvea fols Q/aleJ fritd "<*'/, fiel/ 'ftCKe'lJ, ,, of ofa-meJ K>ant/t6etfon fa. SfJ S0 2 & JO ^Tlecettt&z fol/ Q/afed */i(J any, /tel/ ftcKefJ, S00 32} / S / ^Ajatatice' on ft ana, 2/W M 22M 2J 22SS 23 * ^7^' r * 20 &? * $y* ' ( 4 */lecetv#( fol/ Q/ated *SiiJ aau, nc-ls weniw, 2/S /, #% <&, 20 24/4 * ><> 41 CASH BOOK,- SET II. /, / 2ff // t^tcetv ^oi/ a* tJ ay, fiei/ 9 ^ , 9 r &^ //0 200 ,, on ^Sttffo/ cSaint'-Suie, 2J /2 / / ^of ]r 1S\sj S0 ,, 38a&nce' on, cPalnf^e, S3 &<*<^//oi, &*&, J&j l'/elaae / 6 d& / / ~&* S yX / / y >* y ^7lece(^fce fof Q/at&l */ aay, Atls ttc&etJ, / aoivn, 3W ys / / S , ff Slom vyntcayo, / 30 ,, &i e <*^ o <^K/Je., 24 73 $2) ' / S (-/* S sS ' / / s ' S y i/tecewea fat/ G/at&f v/itJ <*(**// /tei/ **&&. p & / 7-t. S0 30 , of' Gs&ffi&j c-^'C i&& r /,i. . ow /G . / ' 20 ,, ,, =2. tf. <3%omaJ, /a/^ 40 ,, fols Q/ateii MtJ c/ajf, /ml/ &e#etdl, S2S & f S */ 4/3/ fa #*y *6, 3M/* y^o. <> %, 2000 7 ,, ( %u?4 <$f a *y, JO /jTi . / s c/? x ^y cYS'' s yiccetrfO' -to-fr &a J/ !% / Af Sit- , , of ^sl. t-. <^rtnnf>/, #SaK * The Talua of merchandise on hand lias necessarily to bo Assumed. In business It would be ascertained by taking an actual inventory or " Account of stock." 45 STATEMENT. From the foregoing abstract we ascertain the present worth or net capital of the concern to be, $2483 2G From which, if we deduct the investment at commencing, 1500 We shall show the net gain during the two months to be, $983 26 From these illustrations we gather the following RULES. 18 1. To ascertain the NET CAPITAL, or PRESENT WOKTH, subtract the liabilities from the resources. "2. To ascertain the NET GAIN during business, subtract the net capital at commencing from the net capital at closing. EXAMPLES FOR PRACTICE. THE following examples are given to make the student more fami- liar with the principles embraced in the preceding set ; and espe- cially to enforce the theory of the foregoing rules. He should Lo required, not only to produce the proper results, but in each case to render a written statement, similar to that on the preceding page. EXAMPLE I. A merchant commenced business with a capital of $5000. At the end of the year he gathers from his books the fol- lowing facts: Amount of Cash received, $15,000; Amount paid out, $10,500 ; A. B.'s account stands, Dr. $1500 ; Cr. $1000 ; C. D.'s, Dr. $4000 ; Cr. $3500 ; E. F.'s, Dr. $975 ; Cr. $450 ; G. Il.'s, Dr. $483 75 ; Cr. $300 ; Merchandise on hand, as per inventory, $2750; Amount owing to J. K., $1500. Required, the net capital at closing, and the net gain during business. EXAMPLE II. A. and B. commence business with the following resources: Cash, $3000 ; Notes, $1500; Merchandise, $3500 ; Real Estate, $10,000; Balance due on personal accounts, $12,500. At the end of six months, their resources and liabilities are as follows : Cash on hand, $1500; Cash in Bank, $4000; Xotes, $3500; Mer- chandise, $3750 ; Real Estate, $15,000 ; Due on Personal Accounts, $5000 ; Amount due from the firm, on their notes, $750 ; Amount due to persons on account, $1500. Required, the capital at com- mencing; at closing; 'and the net gain. 46 EXERCISES FOR THE LEARNER. S K C O N r> SERIES. THE following transactions should be written up with great care. Let the student use all the books introduced in Set II., and in the same manner. Memoranda. July 1. Commenced Business with Cash on hand, $1500. Bo't of Harrison Scott on ^, 50 Bbls. Genesee Flour, & $8 ; 2 Hhds. Molasses, 140 Gals., 40*; 12 Boxes Soap, $4 ; 6 Half Chests Y. II. Tea, $20.-4-Paid for Stationery and Sundry Expenses, $50. fcec'd Cash, for Petty Sales, $16. 2? Sold J. W. Husted, on %, 10 Bbls. Genesee Flour, $9 25 ; 4 Boxes Soap, $4 25. Paid Drayage, $2. Rec'd Cash for Petty Sales, $50. 3. T Sold John Banks on #, 15 Bbls. Flour, $9 50; 3 Half Chests Tea, $25. 'Paid Harrison Scott, Cash on %, $200. Rec'd Cash for Petty Sales, $75. a/ 7 Bo't of Henry P. Smith, on %, 10 Hhds. Molasses, 1200 Gals.. 50* ; 12 Boxes Havana Sugar, 3750 Ibs., 6*. Sold J. C. %, 10 Gals. Molasses, 75^ ; 1 Bbl. Flour, $9. Rec'd for Petty Sales, $110, 5. Sold Henry P. Smith, on %, 5 Bbls. Flour, $9. Received Cash on % of 1 John Banks, $50. Rec'd Cash for Sales this day, $115 75. 6. Paid Cash for Stationery, $5 50. Rec'd Cash for Sales this day, $110 75. 8. Bo't of C. J. Judd, on %, 5 Bbls. Coifee Sugar, 1000 Ibs., 6* ; 6 Ilhtls. Molas- ses, 4000 Gals., 50*. Rec'd Cash for Sales this day, $75 50. . Paid Cash for Clerk Hire, $50.-^Received for Sales this day, $5Q. 10. Rec'd Cash for Sales this day, $83 30. 11. Sold John Banks, on ^, 10 Gals. Molasses, 60* ; 50 Ibs. 'Coffee Sugtr, 7* ; 1 Bbl. Flour, $9. Rec'd Cash for Sales this day, $68 50. 12. Paid C. J. Judd Cash on %, $500. Rec'd Cash for Sales this day, $75. 13. Rec'd Cash for Sales this day, $117 50. 15. Bo't of Thomas Palmer on %, 3 Bbls. Soda Crackers, $4 20; 12 Boxes Butter Crackers, 360 Ibs., 6* ; 40 Loaves Bread, 10*. Paid Porterage iu Cash, $3 ; For Cleaning Store, $5. Rec'd Cash for Sales this 47 QUESTIONS FOR REVIEW. day, $123 75. 16. Paid James Smith, Cash for Repairing Store, $25. Sold Rob't Hay ward, on /, 1 Bbl. Soda Crackers, @ $5.; 3 Boxes Butter Crackers, 90 Ibs., 7?. Rec'd Cash for Sales this day, $97 50. 17. Rec'd Cash for Sales this day, $125 75. 1& Sold W. F. Norman on ?fc, 100 Ibs. Sugar, @ 7* ; 50 Gals. Mo- lasses, 00? ; 60 Ibs. Sugar, @ 7*. Paid Smith & McDougal for Printing Circulars, $5 50. Rec'd Cash for Sales this day, $88 93. 19. Paid Cash for Postage Stamps, $3 ; Letter Paper, $5. Rec'd Cash for Sales this day, $98 37. 20. Rec'd Cash for Sales this day, $117 95. 22. Rec'd Cash on % of John Banks, $50. Sold Robert Hayward on %, 30 Gals. Molasses, @ 60* ; 2 H'f Chests Tea, 625. Rec'd Cash for Sales this day, $84 28. 23. Rec'd Cash on % of Rob't Hayward, $30. Rec'd Cash for Sales this day, $75. 24. Sold J. C. Buttre on %, 1 Hhd. Molasses, 75 Gals., 56*. Rec'd for Sales this day, $65 75. 25. Rec'd Cash of Rob't Hay- ward, in full of #, $49 30. Rec'd Cash for Sales this, day, $78 25. 26. Rec'd Cash for Sales this day, $48 95. 27. Paid Clerk's Sahry in Cash, $50. Rec'd Cash on % of J. C. Hall, $16 50. Pa'd Henry P. Smith, Cash in full of %, $780. Rec'd Cash for Sa'es this day, $81 38. Mdse. unsold, amounts, per Inventory, to $1500. .., QUESTIONS FOR REVIEW. EEMAEKS, PAGE 38. I. What more perfect results aro shown in Set II ? 2. "What important end is accomplished in keeping a Cash Book? 3. What is one of the most essential books in business ? 4. How may the amount of cash on hand be ascertained without the use of a Cash Book ? 5. What tests are omitted if we depend solely upon counting the cash ? 6. What advantages are there in a faithful record of receipts and dis- bursements of cash ? 7. What will be shown at any time by a Cash Book properly kept? 8. How often in business is it customary to cloe up the Cash Book? 9. How often is the Cash Book, used in this connection, closed? 10. What ia a de- sirable feature in business record ? * STATEMENT, PAGE 45. . II. From what sources are the facts exhibited in the Statement on page 43 ob- tained? 12. What ia an indispensable requisite to any statement showing the con- dition of business? 13. What is the sure test of superiority in a system of Book- keeping? 14. What class of resources are found in the Ledger? -15. What, in tho Cash Book? 16. What ascertained only from Inventor}'? 17. How are our liabili- ties ascertained? 18. What is the rule for ascertaining the present worth of a con- cern? 19. What, for ascertaining tho gain during business t 48 SET III. WHOLESALE DRY GOODS BUSINESS. (PARTNERSHIP.) DAY BOOK; LEDGER, SALES BOOK, CASH BOOK, AND BILL BOOK. WITH STATEMENT OF AFFAIRS AT THE COMMENCEMENT, AND ALSO AT THE CLOSE REMARKS. IN the set which follows we have enlarged the area of our labor, by enlarging our business, and adding somewhat to the variety of our resources and liabilities. The peculiar feature of this set con- sists in the auxiliary books, which are introduced for the double purpose of teaching their use, and preserving a more complete record of the transactions. The form of Cash Book given in this connection differs from that in Set II, in its arrangement of receipts and payments. This form is the one in common use, and is prater- able to the other, mainly on account of its complete separation of the two conditions named ; the receipts being placed on one page, and the payments on the othei*. The Bill Book and Sales Book will explain themselves. There are more comprehensive forms for the Bill Book in use, but the form here submitted is the one more gen- erally used, and has the merit of simplicity and plainness. The Sales Book is one of the most convenient auxiliaries a merchant can adopt ; and particularly where any amount of wholesaling or gen- eral credit business is done. It is not absolutely essential that the credit sales should be entered on the Day Book, as they may easily be posted from the Sales Book direct ; but as many merchants adopt the plan of posting only from the Day Book, and as there are some very good reasons for adopting this policy, we have here given it practical endorsement. The initials, " D. B.," " C. B.," and " B. B.," in the margin of the Sales Book, (standing for Day Book, Cash Book, and Bill Book) will indicate the books wherein are en. tered the various resources received for merchandise. The Sales Book is not, properly speaking, a book of result^, and is not con- sulted in making up our list of resources and liabilities. In the former set the result of the business was a gain ; in this a loss has been sustained, which is shared equally by the two partners. In writing up this set the student should be required to observe the order of dates in the various books, and complete the record of each transaction before proceeding to the next. For example : On the 1st of July, Robert Van Schaick purchased of us a bill of mer- chandise for which he paid cash. This entry is first made in the Sales Book, from which the amount is transferred to the Cash Book, and marked " C. B." in the margin of the Sales Book. The suc- ceeding entries in the Sales Book are, in the same manner, trans- ferred to the appropriate books which are indicated in the margin. 50 DAY BOOK,- SET III. ^fCelcnanaiiiJe, aJ /ieis Q&tfven^ol'U/ y J /te c^ 2 ^X^o* <*&*<* 4 &% e /iai / &?/ ds / <7 a T ? ' S ' H U 1 J V x K w L K Y M Z LEDG-ER-SET III. / SJ r* Sffi Q&Jy S2 c% iJ&cceftaMce s ?s /rt/ G&tVU / ^G^*^/V / W00 /ft/ /ft/ cfajL / $aS0 //* S30 S2* #40 ' f@CLS.ll. 20* S2 fe ojf Or. */i. T SI71 s j ois / // of iJ&wnzo 'iStMton. tn> fee- f ^ <7 f f "9* ftznce/ en nawa, 20 23 24 27 2 Gve. x fa ce on nana, 65 SJ 2S ?S M03 Wo O -a 1 8 SERIES. Memoranda. July 1. S. S. Packard and John R. Penn commence business with the following resources and liabilities; gains and losses to be divided equally. S. S. Packard invests Cash, $4000 ; Merchandise, $1750; Notes, as follows: one for $500, in favor of S. S. P., signed by II. B. Bryant, and endorsed by "W. P. Spencer, dated June 1, 60 ds. ; and one for $700, an accepted draft, drawn by L. S. Bliss on George Claghorn, May 1, at 90 ds. sight, and accepted May 3 ; Personal Accounts, as follows : Henry Fish, $500 ; Robert Fulton, $750 ; David Coleman, $900. John R. Penn invests, Cash, $500; Real Estate, $5000. 2.^Sold N. Frederick, on %, 2 Doz. Gent's Silk Handkerchiefs, 24, & 40* ; 6 PCS. Amoskeag Sheeting, 130 Yds., 10* ; 4 do. Mixed Cassimeres, 100 Yds., 50f. Rec'd Cash of Henry Fish, in full of. %, $500. Paid Cash for Stationery and Printing, $30. 3.' Sold Ira Packard on his acceptance, at 10 days, 1 Case Child's Metallic Tip Shoes, GO Prs., 50*; 2 do. Child's Heel Gaiters, 96 Prs., 63*; 3 PCS. English Tweed, 27 Yds., $1. 4^Sold Win. T. Bush, on %, 4 Cases Men's Congress Gaiters, 96 Prs., $1 50 ; 2 do. Gent's Canada Ties, 24 Prs., & $1 75.7-^Sold James Magoon, for Cash, 1 Piece Striped Velvet, 10 Yds., $5 ; 6 do. Paper Cambrics, 72 Yds., 8*; 10 do. Lynn Cottons, 300 Yds., at 1 1*. 5. Paid Cash for petty Expenses, $3 75. Sold Robert Smith, on his note at 60 days, 3 PCS. Lancaster Gingham, 125 Yds., & 10*; 6 do. Scotch Plaid, 240 Yds., @ 13*. -fBmight of Star, Barnum & Sceley, Invoice of Merchandise, amount- ing to $5000 ; Paid Cash, $2500 ; Note, at .6 months, $2500. (?. Rec'd Cash on % of David Coleman, $500.-^Sold Roger Williams, for Cash, 1 Case Misses Cork Sole Shoes, 60 Prs., 75* ; 1 do. Gent's Paris Gaiters, 24 Prs., $1 75. Rec'd Cash for petty Sales, $25 50. 7. Sold John Fitch, on %, 3 Doz. Elastic Hoop Skirts, 36, $2 50; 1 Doz. "Empress" do., 12, @ $2 ; 3 PCS. Check Mar- seilles, 30 Yds., @ 50*.->Sold Samuel Nash, for Cash, 3 PCS. English Tweed, 27 Yds., <& Si ; 6 do. Corduroy, 250 Yds., 75*. Rec'd Cash Of Wm. T. Bush, on %, $50. 9. >Paid John R. Penn, Cash on private %, $100. Paid Cash for petty Expenses, $7 50. 10. 69 EXERCISES FOR THE LEARNER. John Anderson, for Cash, 3 Cases Ladies' Extra Balmoral Boots, 144 Prs., $2 ; 2 Cases Ladies' " Opera" Gaiters, 48, $1 75. 12. N Paid S. S. Packard, 'Cash on private %, $75. Sold 'Thomas Hunter, on %, 6 PCS. Merrimack Prints, 210 Yds., @ 9*; 5 do. "Union" Prints, 150 Yds., 8* ; 7 do. Lancaster Prints, 244 Yds., 8*; 4 do. Orange Prints, 120 Yds., 81*. Rec'd Cash for petty Sales, $10 38. 13. Rec'd-Cash of David Coleman, in full of #, $400. Sold John Howard, on %, 3 PCS. Lancaster Gingham, 125 Yds., 10*; 2 do. French Merino, 40 Yds., 50^ ; 5 do. Bar. Muslin, 90 Yds., 14*. 14/Sold Robert Coons, for Cash, 6 PCS. Fancy Linens, 36 Yds., @ $2 ; 5 do. English Prints, 200 Yds., 20*; 6 do. Parametta (Maroon), 300 Yds., @ 75*. Paid Cash for Repairing Store, $75. 16. Rec'4 Cash of John Fitch, in full of % t $129.^Sold Henry Fish, oh %, 5 PCS. Amoskeag Stripes, 120 Yds., 12^*; 4 do. Pepperell Sheeting, 160 Yds., 10*; 4 do. Auburn Sheeting, 120 Yds., 15*. 17. Rec'd Cash in full of Robert Ful- ton's /, $750.-^Sold Simon Walker, on his note at 60 days, 4 Cases Men's Thick Boots, 48 Prs., $1 25 ; 2 do. Double-Soled Boots, 24 Prs., $1 50. 20/ Sold Geo. F. Smith, for Cash, 2 Cases Women's Walking Shoes, 120 Prs., 50*; 2 do. Jenny Lind Gaiters, 24 Prs., $1 15 ; 2 do. " Opera" Gaiters, 24 Prs., $1 75. Paid Clerk hire in Cash, $65. 21. Rec'd Cash of Henry Fish, in full of %, $49. STATEMENT OF RESOURCES AND LIABILITIES, JULY 21. The student should be required to make his books conform to the following statement, and to render the same, according to the Ex- ample given in connection with Set IH. Tji(vV>iiitif>B - Personal Accounts . . . $315 54 $2500 Notes receivable 1457 18 S. S. P.'s Net Investment 9025 Cash . 5286 49 J. R. p.'a 5400 Merchandise (per Inv.). . . Real Estate 4500 5000 NET Loss 365 79 $16925 00 $16925 00 70 SET IV. (TWO PARTNERS, ADMITTING- A THIRD.) DAY BOOK, SALES BOOK, LEDGER, CASH BOOK, AND TIME BOOK. WITH AN IMPROVED METHOD OF USING THE SALES BOOK AS A PRINCIPAL BOOK, AXB EMBRACING VALUABLE INSTRUCTIONS PERTAINING TO A CHAKGE IN BUSINESS. REMARKS. IT is intended in this Set to realize, as nearly as may be, the capabilities of Single Entry. "With this view we have introduced several new features, to which we call special attention. It has been the pleasure of certain authors and teachers to con- demn Single Entry Book-keeping as wholly inadequate to the demands of business, and, therefore, unworthy of consideration ; but while we are behind no one in our admiration of the superior facilities and safeguards of Double Entry, we are not at all pre- pared to conclude that a very extensive business may not be con- ducted with perfect safety, having no better record than that" afforded by an intelligent and faithful application of the principles of Single Entry Book-keeping. This fact, together with another of equal force, viz., that in many of the, first-class houses in our large commercial cities, Single Entry is preferred, aifords sufficient cause for attempting to present its strongest points to the public. The materials from which the transactions in this Set are con- structed, were obtained from an extensive cabinet warehouse in New York, and the routine has the merit, at least, of being busi- ness-like. The forms of the books, and arrangement of the various records, are submitted as the most simple and practical in user One important feature in this Set is the use of the Sales Book distinct from the Day Book, In Set III, although a Sales Book is used, all sales on credit are first transferred to the Day Book, and from thence posted into the Ledger. Here, however, the credit sales are posted to the personal accounts directly from the Sales Book. This affords a great saving of time, and is, in all respects, quite as satisfactory. The figures in the margin of the Sales Book refer to the Ledger page to which the amounts are posted ; the initials " C. B." and " B. B." indicate that the result of the sales thus marked, are shown in the Cash Book and Bill Book. The former of these is exhibited at length ; the latter has been omitted, although it is expected that the learner will supply it, after the form given in Set III. 72 REMARKS. The taking in of a new partner forms another important feature of this Set, and one which will afford the learner some of the most valuable hints connected with Accounts. It is a settled principle in Accounts, or should be, that whenever any change in the business occurs, the existing resources and liabilities of the concern should be made apparent ; and, consequently, the proprietors' accounts should represent their net investment at the time of the change. The same rule holds good- respecting the landmarks of business, or the financial eras, such as the close of a fiscal year, or any import- ant event which makes it necessary to exhibit on the main books the exact condition of the business. In the case under consideration, the existing partners, " Lester and Brown," propose to admit a new partner, who shall invest equally with them, and share equally in the gains and losses. The partners' accounts now show only their original investment ; and it will be evident that, if the new partner invests an amount just equal to this, he will unjustly become a joint-partner in the gains which have already accrued, but which remain unacknowledged in the business. The original partners, it is plain, are entitled to all the avails of the concern previous to admitting the new partner, and if their own proper accounts do not show what this net amount is, they should be made to. Therefore, before deciding how much the new partner should invest to place him on an equal footing with his associates, it becomes necessary to credit the original part- ners with their respective gains during business. With this view the statement on the third page of the Day Book is made, and the partners thereafter credited, each with his net gain. The partners' accounts in the Ledger arc then closed up, and the balances brought down as a new capital, which is, of course, the amount that the new partner must invest. The general Statement which follows this Set affords, perhaps, as convenient a form for such statements as any in use. The student cannot too carefully study the philosophy of these, nor be too par- ticular in drawing them up y as to their neatness and perspicuity. An obscure or insufficient statement of a business, however pros- perous and satisfactory may be the condition which it aims to show, is like a good story so bunglingly told that its chief points are ob- scured, and its moral entirely lost sight of. For simplicity, directness, and efficiency, the forms and general \>lan of Set IV are submitted as a model. 73 DAY BOOK,- SET IV. t^AJ- ncy ie> (^o/iai'/net-J/ityi f/itf aau, ad /,ea&U ttv c^/*- ancfr vja'frtne'itiiale, ttvtaeis fAe^ ffi^n- l /tff&' of ' jfiim Mes . ana? it . , aJ /teis ^el-mJ ef 0> $00 00 300 00 ^3/^S 00 230 00 730 we/ oUoKLena Qjefr/J, aJjamedy vy cTVlm : ^ty. 20, #J00 00 oneJ, ,, <&/,. S0, 2J0 04 t/^es J&J/tn, ^adfalct on %, /?J 00 23000 )v &aJn, nce/ (rues Qs. eMie-l, 74 DAY BOOK,- SET IV. (7 % , <-SlG4 & ^ 3k 43 75 3 DAY BOOK,- SET IV. j 30 c/J., . ^i.ed'te!/ Oj ^Sio^etff Staves >^fi.tJ aay a*)ocea l /eifr' 4u(tn ft/ient; Jiov-el'i^ ^LtKcofft / -u>no tJ vo MkfaMo a ' 1 ' / / / iiL = , of (aa/teitac, anci/ drtales eauatf/t tw / / / f S '-ftaztiJ ancy ^LofteJ. a Iya<)/i etc /ette of 7 C . VV d/edss tfatti, /els G/tfa^ctften^, /ie Stc 77 sy/\ /W SALES BOOK,- SET IV. 7 i/lialble-<^/o/i lAjuieaet, Q/el/ienftne' ^e>i/ @/#ti(/!/, 6 ft \\ "" V&kod', W %. f J_ 4 $6* 00 'ft VSaiW. 3B e( /jSea //^ ^ 3 00 40 00 SS 00 oiJlv). 3 SALES BOOK,- SET IV. 7 G/0/-CI e/zwe, <=vie/ c/'lon't, / S S 0 SJ SALES BOOK,- SET IV. 6 J&tufr /<&. y.e S&ano tu^, @ $4 00 alae' ztntna 2 ?o^ ^/atU, c ^nacK / 83 S 00 S20 00 ss 00 ys 00 J0 00 %. rtvuM. "Uvift, 00 f/0 00 f 00 60 LEDG-ER,-SET IV. 3/ 44 Sffc ^fav yfc? e au 44 ^fca i/reT^6atn /cf/ S4 44 M "3 3 Ct? S \ ta "u Tbad/i. Z /ft/ /J S 84 LEDG-ER,-SET IV. / u Sfffa Jtyi. / t, ,, ,, JS s/ f so ,, <~fi V aeie on o^onn Q/tm/tdon '. =Z-. (Otrutei. /let/ &. *%>.. " # S ' / 72 so /? ,, ,, Q^tmeJ Q/mtw, 33 /s ,, ,, <$%<> ma j <7fZ&S e l, tn>f./ %, 30 2S 4? ^? ' V^VX^ / % 43 so 2' v-i&tt&'ri'Zo ao-tutt. &3' V 4 it 7 // S i/iec a of ise'iei/ Q^amceo., /i. Q7.J&. 7s 20 ss /> '?C * &*tMe>n, ,, ,, o/ so 2ian, ,, ,, & 7so? 44 aw a ^AJcttancc*' 'friott&St'iL^ crown, /003 02 SET IV. / ;/Z, 4 J S { em, o&Hffti. on^fjte^Mttiy. Cf&on6>it G-zwended, /iel GtV/ten, SS0 f S2S J0 S2000 //f SSf SS4 S/3 2J SM3 89 I -' oT I ^ '- j : i : I i i i 5 * XX J-f g . 2" *- ~ ^ i. 1 ii'-if ^ 2 a*Ji? S i? ( -^ ^ pj eJ P ritt ftj -5 & rf ri aj 90 STATEMENT SHOWING THE CONDITION OP THE BUSINESS ON THE Slsx OF MAY. THE following Statement diffei's, in no material respect, from those which have preceded it ; the only difference being in the form of expressing the gains. There being no debts owing to outside par- ties, the several amounts due the members of the firm constitute the only liabilities. The sum of these amounts, or the total present worth, must, of course, equal the sum of the resources. RssQiircpR 1. From Ledger Accounts. Balances due : A. A. Low, <&825 H. W. Clark 56 R. Bannister 57 Joseph Brooks 36 12000 Steamer Isaac Newton 455 2. From Cash Book. Balance of Cash oil hand 1003 0? 3. From Bill Book. Notes on hand 1016 50 4. From Inventory. Valuation of Property: Finished Stock on hand 4000 Unfinished 875 Tools and Implement 500 $20823 52 Liabilities. James Lester's Investment $6753 44 ." " Net Gain 187 73 " " Present Worth $6941 17 Robert Brown's Investment $6753 44 " " J Net Gain 18773 " 'i Present Worth 6941 17 Robert Lincoln's Investment $6753 44 " " 1 Net Gain 187 74 " " Present Worth 6941 18 TOTAL PRESENT "WOHTH, f^OS'S 62 91 EXAMPLES FOR PRACTICE. THE principles applied in the foregoing statement have been already sufficiently announced. The examples which follow are intended to afford the student more ample practice in the important labor of expressing financial facts through appropriate forms. Let the solutions be rendered in the form of a Business Statement. EXAMPLE I. A and B are equal partners, investing each $10,000. At the end of a year they desire to take C into co-partnership upon condition that he will invest equally with them, and share equally in the results of the business. The following is a statement of their affairs previous to uniting with C : Personal Accounts, John Jones, Dr. $1500, Cr. $700; Robert Fulton, Dr. $5000; James Webb, Dr. $1750, Cr. $1000; Clarence Shook, Dr. $5000, Cr. $2500 ; Lewis Lyman, Cr. $4000 ; Dr. $3000 ; W. F. Norman, Cr. $2000; Dr. $1500; Merchandise unsold, $7500; Notes on Jiand, $6000 ; Notes outstanding, $2500 ; Cash on hand, $2000. Required, a statement showing the gain or loss during business, and the net capital of each partner at closing. EXAMPLE II. C and D enter into co-partnership, C to furnish the capital, and D to devote his time to the business gains and losses to be divided equally. C invests $10,000, and during the year withdraws $2000. D withdraws $1500. At the close of the year, they have: Cash, $3000; Personal accounts, $1500; Mer- chandise, $10,000; Notes, $1750 ; they owe, on notes and personal accounts, $5000. What is the gain or loss in business ? What is each partners capital at closing f EXAMPLE III. J and K enter into co-partnership for the purpose of conducting a Building business ; each to receive interest at "i e / on his net investment, and the gain or loss to be divided equally. J invests : Materials and Implements, $5000 ; Unfirra|hed contracts, $6750; Notes, $4800; Personal accounts, $10,000; and the firm assume to pay for him a liability of $1000. K invests : Cash, $10,000; Notes, $15,000. At the close of the year, their books show the following condition: Cash on hand, $15,000; Notes, $5760 ; Interest on same, $500 ; Materials and Implements $18,000 ; Personal" accounts, $9400. What is the net gain or loss ? WJiat is each partner's capital at closing ? 92 EXERCISES FOR THE LEARNER. Jims 1. William Jones and Thomas Mason, enter into co-part- nership. WILLIAM JONES invests: Mdse. $4750; Tools and Implements, $750 ; Notes, $1500 ; Peter Filkin's %, $500 ; Robert Hall's do. $700. THOMAS MASON invests: Cash, $8200. Sold W. D. Packard, on % t 1 set Enameled Furniture, $75 ; 2 Hair Matrasses, $12 each; 1 Mahogany Arm Chair, $15. 2. Paid Cash for Stationery, $20. Sold Robert Banks, for Cash, 1 doz. Dining Chairs, $20; 1 Hall Stand, $8; 1 Mahogany Bedstead, $12. Paid Cash for Lumber, $25. Sold George Chrysler, on his note 30 ds., 1 Child's Crib, B.W. $6 ; 1 Mahogany Bureau, $25 ; 1 Tete-a-tete, R.W. $30. 3. Received Cash of Robert Hall, on %, $300. Sold George A. Crocker, on /, 1 Hall Stand, $6 ; 2 Light "Washstands, 1 $5, and 1 $7 ; 12 Kitchen chairs, @ 75*. Sold John Hall, for Cash, 1 French Bedstead, $15. 5. Paid Workmen, Cash to date, $165. Sold A. W. Betts, on %, 10 Cane Bottom Chairs, @ $1 75* each ; 1 Black Walnut Tete-a-tete, $30 ; 1 Card Table, $10; 3 small Washstands, $2 50* each. Sold James Morgan, for Cash, 1 Black Walnut Book-case, $40 ; 1 Double-leaf Secretary, $30. 6. Received Cash for John Jacobs' note, due this day, $500. Sold Charles Williams, on his note 60 ds., 1 Pair Ottomans, $12 ; 1 Piano Stool, $7 ; 8 Brocatelle Parlor Chairs, $4 each ; 1 Sofa Table, $15. Bo't. of Clark Dunham, on ^, 1 Lot Black Walnut Lumber, $900. 7. Sold A. W. Betts, on #, 1 Mahogany Centre Table, $15; 1 Cottage Bedstead, $10; 1 Corner Stand, $5. Sold James W. Lusk, for Cash, 1 Black Walnut Book- case, $50. Received Cash in full of Peter Filkin's %, $500. 8. Sold J. C. Buttre, for Cash, 1 Dressing Bureau, (serpentine front) $25 ; 1 Study Lounge, $12 ; 1 Extension Dining Table, $17. Sold Win. T. Brooks, on %, I Rosewood Tete-a-tete, $50. 9. Sold James Moore, for Cash, 1 Quartette Table, $6 ; 6 Parlor Chairs, $5 each ; 1 Set Enameled Furniture, $50. 10. Paid Cash for Gas Bill, $14 30*. Received Cash of A. W. Betts, m full of %, .12. Paid Workmen, Cash to date, $275. Sold Geo. A. Crocker, on %, 6 Parlor Chairs, $3 ; 12 Dining Chairs, $1 50 ; 1 Mantel Clock, $5. 13. Sold Benj. F. Butler, on %, 8 doz. Camp Stools, 96 50* each ; 1 Portable Secretary, $25. Received Cash on %, of W. D. Packard, $75. 15. Sold Robert Hall, on ^,6 Gothic Chairs $5 each; 1 French Bedstead, $15; 2 Washstitnds, $4 93 EXERCISES FOR THE LEARNER. each. Sold W. J. Curtiss, for Cash, 1 Book-case, $40 ; 4 Library Chairs, $7 each; 1 Large Rocking Chair, $15. 17. Paid Work- men, Cash to date, $218. Received Cash of Geo. A. Crocker, in full of %, $ .Sold J. C. Banks, for Cash, 1 Double Bedstead, $10 ; 1 Single do., $9. 18. Paid Clark Dunham, Cash on %, 500. Sold John Banks, on his note 30 ds., 1 Bureau, $30 ; 1 Sofa Bedstead, $45. 19. Sold W. D. Packard, on %, 12 Kitchen Chairs, 81 each; 3 Common Bedsteads, $5 each; 1 Office Desk, 815. Sold W. T. Brooks, on 7c, 1 Carved Rosewood Center Table, $45. 20. Received Cash of W. D. Packard, in full of %, $ .21. Sold Robert Hall, on %, 1 Teacher's Desk, $25 ; 12 Dining Chairs, $1 75*; 12 Cane Bottom Settees, $8 each. 22. Paid Cash, Book-keeper's salary, $75. Received Cash, in full of William Carter's note, now due, $1000. 24. Paid Workmen, Cash to date, $193. Sold E. A. Charlton, on %, 50 Double School Desks, $9 each; 100 Chairs for same, 50* each. 25. Sold Win. Johnson, for Cash, 1 Mahogany Bedstead, $20 ; 1 Marble top Washstand, $17. Received Cash of Robert Hall, on ?fc, $200. 26. Sold John S. Williams, on %, 6 Parlor Chairs, Brocatelle, @ $5 each ; 1 carved Rosewood Center Table, $50; 1 Piano Stool, $10. Paid Cash, on Drayage %, $50. 27. Sold Peter Duff for Cash, 6 Office Chairs, $2 50* each. Paid Clark Dunham, Cash in full of %, $ . Received Cash of Robert Hall, in full of #, $ .29. Sold William Dallas, on /, 1 Mahogany Sofa, $35 ; 1 Rosewood Arm Chair $45, 1 Hall Stand, $7 ; 1 Tete-a-tete, $30. New Firm July 1. Jones and Mason have this day associated with them George F. Smith, Avho is to invest an equal amount with each of the former partners, and share equally in gains and losses. The value of unsold Merchandise is $5500 ; of Tools and Implements, $750 ; the other resources and liabilities can be ascertained by reference to the appropriate book?. Mr. Smith invests: Cash,* . Bo't of Henry P. Smith, for Cash, a quantity of Pine Lum- ber amounting to $35dO. Paid Workmen, Cash to date, $175. 3. Sold John S. Williams, on %, 2 Bedsteads, 1 @ $6, and 1 $10; 3 Washstands, $2 50* each; 6 Kitchen Chairs, $1 50* each; 1 Lounge, $15; 1 Secretary, $25 ; 1 Bureau, $18. 5. Sold E. A. Trotter, for Cash, 1 Black Walnut Book-case, $00. Sold James Thurber for Cash, 6 School Desks, (single) $5 each In order t%ascertain the amount of Smith's investment, it will be necessary to carry tka gains to the partners 1 accounts. A statement should be made similar to that on page 74 94 EXEECISES FOR THE LEARNER. 1 Teacher's Desk, $25 ; 2 Office chairs, $7 50* each. 6. Sold Joseph Wadsworth, on his note 30 ds., 1 Rosewood Tete-a-tete, $65; 2 Ottomans, & $10 each. Received Cash, in full of George Chrysler's note of the 2d ult., $61. 8. Paid Workmen, Cash to date, $218.-Add James McGrath, for Cash, 12 Dining Chairs, $2 each; 1 cl^Louiige, $17 ; 1 Bureau, $20. 10. Received Cash, on % of Wm*T^^6, $50. Sold Steamer Troy, on %, 2 Black Walnut Sofas, $45 each ; 3 Tete-a-tetes, $50 each ;' 24 Chairs, @ $7 each. 11. Received Cash, in full of E. A. Charlton's %, $ . Sold W. F. Norman for Cash, 1 Black Walnut Book-case, $60 ; 1 Bureau, $30. Bo't. of Robert Coon's for Cash, lot of Mahogany Lumber, amounting to $5700. 15. Paid Workmen, Cash to date, $212. 16. Sold Henry Harper for Cash, 50 School Desks, & $9 each. Received Cash of John S. Williams, on %, $90. 17. Sold Robert S. Hayward, on %, 1 Gothic Book-case, $75. Received Cash of B. F. Butler, in full of %, $ .20. Sold John S.Williams, on /, 12 Parlor Chairs, @ $5 each. 22. Paid Workmen, Cash to date, $175. 25. Paid Gas Bill in Cash, $15. Sold Peter McGrath for Cash, 1 Sofa Bedstead, $50. 29. Paid Workmen, Cash to date, $219. Paid Cash for rent, $100. STATEMENT. Showing the condition of the business, Jnly 31. "Rfifirvurces Mdse. unsold, (per Inventory,) Cash on hand, Notes " W. T. Brooks, Balance of % John S. Williams, " Wm. Dallas, Steamer Troy, Robt. S. Hay ward, " " Tools and Implements, at valuation. 15000 9826 226 95 150 67 4Q8 75 750 05 50 26597 55 "Liabilities, Wm. Jones, Net Capital, July 1, $8637 35 i Net Gain, 228 50 8865 85 Thos. Mason, Net Capital, July 1, 863? 35 J Not Gain, 228 50 8865 85 Gco. F. Smith, Net Capital, July 1, 863735 J Net Gain, 228 50 8865 85 26597 55 t 95 QUESTIONS FOB" REVIEW. QUESTIONS FOR REVIEW EEMAEKS, PAGE 50. 1. "What is the peculiar feature of Set III ? 2. How does the form of the Cash Bopk in this Set, differ from that in the preceding? 3. Which form is preferable? 4. Why ? 5. For what purpose is tho Sales Book used ? 6. la it essential that the sales should be entered on tho Day Book ? 7. How posted if not so entered ? 8. What do the initials in the margin of the Sales Book indicate? 9. Is the Sales Book used hi making up a list of Resources and Liab. lilies ? REMARKS, PAGE 72. 10. What is the purpose of Set IV? 11. Upon what grounds has Single Entry been condemned ? 12. Is the objection valid ? 13. Is Single Entry used to any extent in first-class Business Houses? 14. What is the important feature in this set? 15. How does the Sales Book differ in its use from that in Set III? 16. What is the advantage ? 17. What do tho initials in tho margin indicate? 18. What other feature than the peculiar use of the Sales Book is prominent in this Set? 19. How must a change in tho business be marked ? 20. At what periods in business is it proper that the resources and liabilities should be shown? 21. In admitting a new partner with an equal investment how can the proper amount of the investment be ascertained? 22. What objection to making the new partner'g investment equal to the original investment of the oldt PART II. DOUBLE ENTRY. PART II. DOUBLE ENTRY. INTRODUCTION. IP the method of keeping accounts by Sicgle Entry may be called a system, that by Double Entry may very properly claim the dig- nity of an exact science ; l for, while the former is not devoid of excellence as a means of showing the condition of business, the latter not only affords a proof of its own correctness, but in addi- tion to showing the condition of business, gives, aLt>, with mathe- matical exactness, an indication of the particular channels through which gains and losses accrue. *The essential difference in the two systems has reference, mainly, to this latter qualification, and to the fact that in Double Entry all the results, including resources, liabil- ities, gains and losses, are shown in the Ledger, while in Single Entry, the partial results, at all attainable, are gathered from various auxiliary books, including the Ledger, Cash Book, Bill Book, etc. 3 The precise difference may be appreciated by comparing Set III. in Part II. with the corresponding Set in Part I., the transactions being the same in both cases. 4 The term Double Entry, as contradistinctive to Single Entry, has reference to the fact, that for every transaction, two or more entries are made in the Ledger. B The condition of these entries is such that each transaction, when properly recorded, will produce on the Ledger equal debits and credits ; that is, the same value which is carried to the debtor side of one or more accounts must also be carried to the creditor side of one or more accounts, pro- ducing thus a perpetual equilibrium of debits and credits, 'and affording a distinct test of the correctness of the work. The theory of " equal debits and credits" is the leading, feature, of Double Entry ; and although its application is, in ah 1 cases, most 99 INTRODUCTION. reasonable and satisfactory to the accountant, it is often adjudged by those whose general intelligence should cause them to blush for their ignorance in this regard, 7 as being complex and mysterious, and calculated more to befog the mind of the uninitiated than to subserve the ends of justice. , 8 To those who are troubled with these vagaries, it is only neces- sary to say that Double Entry contains every feature of Single Entry ; and, that so far as Single Entry goes, it differs in noae of its results from Double Entry ; the latter being a continuation, or, rather, a perfection, of the purposes of the former. *The main dis- tinction which we shall recognize between the two systems i> - , that Avhile in Single Entry a record is kept of resources and liabilities only, in Double Entry a similar and additional record is ke;>t of special gains and losses. 10 This grand feature of Double Entry should commend it at once to all prudent business men ; for while it may properly be regarded as affording a true indication of the comparative merits of the various schemes of profit, it also, in a great measure, guards against errors and omissions which might pass undetected in Single Entry. As in Single, so in Double Entry, the main book of Accounts is "the Ledger. 12 The Single Entry Ledger, however, contains only accounts with individuals, while the Double Entry Ledger shows the result of each transaction, both as regards the character of the exchange and the gain or loss thereby effected. Thus 13 an account is kept, not only with persons whom we may owe, or who may owe us, but with every species of property in which we deal, and every cause producing gain or loss. "Although it is customary, in connection with Double, as well as Single Entry books, to keep a Cash Book and Bill Book, yet all the essential facts connected with' cash and notes are shown in the proper Ledger accounts. 15 The three main books used in Double Entry are the Day Book, Journal, and Ledger. 16 The Day Book and Journal are sometimes combined in one. 17 TiiE DAY BOOK. Is the original book of entry, and contains a consecutive history of the transactions, in the order and date of their occurrence. 18 It should be plain, concise, and unequivocal in its statements ; neither confusing the mind by redundancy of language, nor leaving room for improper inferences from lack of sufficient explanation. 100 INTRODUCTION. 10 THE JOURNAL, When used separately, is the intermediate book between the Day Book and the Ledger. ^Its office is to decide upon the proper debits and credits involved in each transaction, preparatory to their entry upon the Ledger. The process of thus classifying the trans- actions is called 21 journalizing. 58 THE LEDGER, Is the book of results, the final book of entry. K Here, under appropriate heads, called accounts, are arranged all the facts neces- sary for a full and satisfactory statement of the business; including, not only an exhibition of the present resources and liabilities, but a distinct record of particular gains and losses. The process of trans- ferring to the Ledger is called ^posting. The following examples of these separate books, showing their characteristic records of the same transaction, will clearly indicate their use : 1. Day Book. NEW YORK, JANUARY 1, 1861. N/ Bought of JAMES MONROE, 500 bbls. Flpur on account, .. $10 5000 V/ 4 Sold ANDREW JACKSON, for 100 bbls. Flour cash, @ $10 50 1050 * I q J 2. Journal. NEW YORK, JANUARY 1, 1861. r)r. 1 $5000 2 To James Mouroe .... $5000 3 Cash, Dr 1050 1 To Merchandise 1050 1 Ledger Titles. Dr. Ledger rules. Cr. k 5 1 1 I 3 & i <5 1 J 101 INTRODUCTION. DR. 3. Ledger. MERCHANDISE. CR. IS61 1861 Jan. 1 To James Monroe. . 1 5000 1 By Cash 1 1050 i & Px a. X g >. For what debited. \ g .' f X For what credited. 1 4 X 4 | a M a I DR. DR. JAMES MONROE. 2 CR. 1861 Tan. 1 By Merchandise .... 1 5000 CASH. 3 CR. 1861 Jan. 1* To Merchandise .... 1 1050 102 THE SCIENCE OF ACCOUNTS. Although the books containing a consecutive history of the bus iness are essential for that purpose, yet M the science of Accounts pertains exclusively to the results of the transactions as shown in the Ledger. Particularly is this true in Double Entry, where the Ledger contains all the results necessary for a complete rendering of the condition of the business, at any time. 86 Each Ledger Account is, properly, a statement of some financial fact, and shows one of the four following results, viz. : a resource, a liability, a gain, or a loss. These facts or results are ascertained 87 by taking the difference between the sides of the accounts, thus : DR. CASH. CR. Ca,K Pnit m>t. 1861 Jan. To Stock (Investm't) " Merchandise 1861 Jan. 5000 Jan. 1 By Merchandise .... 2500 1500 " 18 " " .... 1200 6000 " 30 " David Brown... 500 $usoo " " " Expense |UM Total Cash Received, $11500 " " Paid out, 4500 Balance on hand '" RESOURCE, $7000 DR. MERCHANDISE. CR. Ci'l tif tftrrkinlit*. Proetedt of Merclan'tut. 1861 1861 Jan. 1 ToOwli 2500 Jan. 15 By Cash 1500 10 " " 1200 " 30 " " 5000 14 " David Brown... 1500 $9300 Total Proceeds of Merchandise, $6500 Cost " " 5200 Net Proceeds "GAIN, "$1300 103 DR. THE SCIENCE OP ACCOUNTS. DAVID BROWN. CR. 1S61 ! 1861 Jan. 30 To Cash 500 Jan. 14 By Merchandise.... "We owe him, $1500 He owes us, 500 Balance due him * LIABILITY, $1000 DR. EXPENSE. CR. 0t'. 1861 Jan. 30 To Cash 300 Total Outlay for Expenses 31 Loss, We will suppose tlie accounts given to comprise all in the Ledger, with the exception of the Stock, or Proprietor's account, tvhiou should represent the net investment; and that the net investment, as shown by the first entry in Cash account, is $5000. The fol- lowing simple statement will sufficiently enforce the leading prin- ciples of the science. Resource Cash on hand $7000 Liability We owe David Brown 1000 Net Resources, or Present Worth Gain Loss On Merchandise $1300 On Expense 300 Net Gain ~~ $1 000 Add original Investment 5000 Gives Present Worth. . . $6000 $6000 From the foregoing illustrations we are enabled to deduce the following general facts : 1. An Account is a 3S statement of facts pertaining to some per- 104 THE SCIENCE OF ACCOUNTS. son, species of property or cause, so arranged as to show an im< portaut and specific result. 2. ^ Every account has two sides, a debtor and a creditor ; each containing the results of separate transactions, and showing, in tho difference between the amounts, a general result or fact having an important bearing upon the business. 3. M Accounts may be divided into two classes ; one of which is used to designate the resources and liabilities, and the other, the gains and losses. 4. 35 The net gain or loss in business, as evinced by the general result of all the accounts showing gains or losses, is confirmed by a corresponding increase or diminution of wealth, which is shown in the general result of all the accounts showing resources or liabil- ities. DEBITS AND CREDITS. 36 One of the great difficulties which beset the teacher of Accounts, lies in the proper definition and enforcement of the terms " Debit and Credit." So thoroughly is this fact appreciated, that ambitious authors have been induced to prepare entire treatises on the science, claiming, as an apology for their appearance, the discovery of some " infallible rule" for journalizing, which, in the author's opinion, would entirely revolutionize the labor and processes of instruction, and open up to all future generations the grand high- way of " Book-keeping-made-easy." The anxious student is assured that the whole matter turns upon the simple facts of oiciny and being owed. " Thus," says the author, " every debit owes you, and you owe every credit;" and from these premises is deduced the infallible and homogeneous corollary, "Debit what owes you, and Credit what you owe." Another class of authors rush to the opposite extreme, basing the whole theory of debits and credits upon their utter luck of theory, announcing, at the very threshold, that "the items of which debits and credits are composed form a list of incongruous facts having no object in common." S1 And yet, these very authors, Avidely as they differ in the methods used to enforce the truths of science, would not differ in the least as to the truths themselves, when applied to the purposes of obtaining the grand result of any series or combination of transactions involving financial interests. In whatever theory we may advance, therefore, we have no desire to underrate the honest convictions of any one who has made him- self master of the subject, or to substitute our reasoning for his. 105 THE SCIENCE OF ACCOUNTS. The question as to the best methods of presenting a truth is purely professional. The main object of every teacher should be the attainment of truth, by whatever method. We believe that every student who will thoroughly familiarize himself Avith the seven principles which follow, will have no diffi- culty in deciding upon the proper debits and credits involved in any business record which he may be called upon to make : P K I N C I P L E S. 1. TJie Proprietor. 25 The person or persons investing in the business should be cred- ited, under some title, for all such investments, and also for his of their share of the gain ; on the other hand, he or they should be debited for all liabilities assumed by the concern for him or them, for all sums withdrawn from the business by him or them, and for such loss as he or they are entitled to share. 2. Cash. r9 Cash account should be debited for all cash receipts, and cred- ited for all cash disbursements. 3. Merchandise. 40 Merchandise, and all species of property, bought upon specula- lation, should be debited, under some appropriate head, for the cost of the property represented, and credited with its proceeds. 4.' Bills Receivable. 41 Bills Receivable account should be debited with other people's notes, acceptances, and other written obligations when they become ours, and credited when they are paid, or otherwise disposed of. 5. Bills Payable. 45 Bills Payable account should be credited with our notes, accep- tances, or written promises to pay, when they are issued, an., - 111 DAY BOOK -SET I. NEW YORK, JANUARY 18, 1861. V Bought of George Davis, on %, 1000 Bush. Oats, 75* Amount forward, Sold Raymond & Co., on their Note @ 5 ds., 500 Bush. Oats, @ 80* $400 00 100 " Wheat, " $1 15 115 00 Sold Abram Fuller, for Cash, 400 Bbls. Flour, @ $6 00 $2400 00 300 Bush. Wheat, " $1 10 330 00 Bought of James Hathaway, on %, 1500 Bbls. Flour, @ $5 50 37 Sold Jonas Clark, on /, 1000 Bbls. Flour, $6 00 Received Cash in full for Raymond & Go's Note, Sold John Drummond, for Cash, 500 Bbls. Flour. @ $5 75 $2875 00 500 Bush. Oats, " - 90* 450 00 Paid Clerk Hire, in Cash, " Store Rent, $50 00 50 00 14200 750 515 8250 6000 515 3325 100 i 36385 112 JOURNAL,- SET I. NEW YORK, JANUARY 1, 1861. Dr. Cr. ' FLOUE, Z>>'. To SMITH & SONS, Flour cost $6000, and is debited accord- ing to Principle 3. We have become indebted to Smith & Sons, and they are credited ac- cording to Principk 6. 6000 6000 ' CASH, Dr. To FLOUE, Cash is received, and is debited, according to Prin. 2. Flour has produced cash, and is credited with the amount produced, accord- ing to Prin. 3. 1950 1950 ' PETEB COOPEE, Dr. To FLOUE, Peter Cooper has become indebted to us, and is debited according to Prin. 6. Flour has produced this indebtedness, and is cred- ited, according to Prin. 3. y 1750 1750 J> BILLS RECEIVABLE, Dr. To FLOUE, Bills Receivable is debited, according to Prin. 4. Flour is credited, according to Prin. 3. 1050 1050 10750 10750 113 JOURNAL,- SET I. NEW YORK, JANUARY 10, 1861. Dr. 2 2 Amounts Forward, WHEAT, Dr. To BILLS PAYABLE, Wheat, Dr., Prin. 3. BillsPay'le, Cr., Prin. 5. 10750 500 10750 500 \ CASH, Dr. To WHEAT, " FLOUR, Cash, Dr., Prin. 2. Wheat& Fl'r, Cr., Prin. 3. 800 125 675 2 EXPENSE, Dr. To CASH, Expense, Dr., Prin. 1. Cash, Cr., Prin. 2. 50 50 '< FLOUK, Dr. To CASH, Flour, Dr., Prin. 3. Cash, Cr, Prin. 2. 1500 1500 ' CASH, Dr. To FLOUR, Cash, Dr., Prin. 2. Flour, Cr., Prin. 3. 600 600 3 OATS, Dr. To GEORGE DAVIS, Oats, Dr., Prin. 3. Geo. Davis, Cr., Prin. 6. 750 750 14950 14950 114 JOURNAL,- SET I. NEW YORK, JANUARY 20, 1861. Dr 3 Cr. 2 Amounts Forward, BILLS RECEIVABLE, Dr. To OATS, " WHEAT, Bills Receivable, Dr., Prin. 4, Oats and Wheat, Or., Prin. 3. CASH, 'Dr. To FLOUR, " WHEAT, Cash, Dr., Prin. 2. Flour and Wheat, Cr., I'rin. 3. 2 FLOUR, Dr. To JAMES HATHAWAY, Flour, Dr., Prin. 3. J. Hathaway, Cr., Prin. 6. JONAS CLARK, Dr. To FLOUR, Jonas Clark, Dr., Prin. 6. Flour, Cr., Prin. 3. CASH, Dr. To BILLS RECEIVABLE, Cash, Dr., Prin. 2. Bills Receivable, Cr., Prin. 4. CASH, -Dr. To FLOUR, " OATS, Cash, Dr., Prin. 2. Flour and Oats, Cr., Prin. 3. EXPENSE, Z>r. To CASH, Expense, Dr., Prt'n. 7. Cash, Cr., Prin. 2. 115 14950 515 2730 8250 6000 515 3325 100 36385 14950 400 115 2400 330 8250 6000 515 2875 450 100 36385 LEDG-ER-SET I. Dr. Cr. 1861 1861 Jan. 1 To Smith & Sons 1 6000 Jan. 2 By Cash, I 1950 15 " Cash, 2 1500 6 P. Cooper, 1 1750 25 " J. Hathaway 3 8250 7 Bills Rec'ble 1 1050 15750 12 Cash, 2 675 17 i) it 600 Proceeds, . . $17-00 22 i> 3 2400 Net Proceed*, $1550 it 27 29 Jonas Clark, Cash, 3 3 6000 2875 liroo i Dr. Smitli &> Sons. Cr. We om them $6000 1861 Jan. 1 By Flour, 1 6000 Dr. Cash.. 1861 1861 Jan. 2 To Flour, 1 1950 Jan. 14 By Expense, 2 50 12 Wheat &Fl'r 2 800 n 15 " Flour, 2 1500 " 17 Flour, 2 600 i 3 " Expense, 3 100 22 Fiour&Wh't 3 2730 KM M 28 Bills Rec'ble, 3 515 >! 29 Flour, n 3325 Received. $9950 Paid out,' 1650 MM On han't, $8270 Dr. * h; m . 3?eter Cooper, w. % 116 C 1S61 Ja;;. 5 To Flour & Oats, 1 1750 Hi nett tu $!'50 LEDGER-SET I. Dr. Otkert' nota received. .Bills t)l<3. OtHert'noteidiipoiedof. \jT 1861 1861 Jan. 1 To Flour, 1 1050 Jan. 28 By Casb, 3 515 n 20 " Oats&Wh't 3 515 15S5 Notes received, 11565 " disp'd of, 615 " m Hand, Vo50 Dr. "Wheat. Or. 1861 1S61 Jan. 10 ToBillsPayable 2 500 Jan. n 12 20 By Cash, " Bills Rec'ble 2 3 125 115 n 22 " Cash, 3 330 Proied, . . (S10 Cost, .... 600 Net Proceed!, (70 70 Dr. Our note, redeemed. Bills . Our n, te, uned. . C? .V(ej outitand'y, $500 1861 Jan. 10 By Wheat, 2 500 Dl\ Outlay/or Xtpen,, 1861 Jan. 14 To Cash, 2 50 Outlay for Etptn. $150 30 " " 3 100 ISO 117 s Dr. LEDGER -SET I. Oats. Proteedi. Or. 1861 1861 Jan. 18 To Geo. Davis, 2 750 Jan. 20 By Bills Rec'blo 3 400 n 29 " Cash, 3 450 50 Proceeds, . . $850 Cost, .... 780 Net Proceeds, $100 Dr. o^ % again,, u.. Greorge Davis. a. % aga in ,. W owe him *T50 1861 Jan. 18 By Oats, 2 750 Dl\ Wt , 175000 5 BILLS REC'ABLE, Jfotes on hand, .... 1050 00 12 JONAS CLARK, . . ffe awes us, 6000 00 Liabilities. 2 SMITH & SONS, . We owe them, 6000 00 7 BILLS PAYABLE, Our notes outstanr. To Merchandise, 35883 82 50 35883 82 2 2 . . /7 _., , Merchandise, Z>r. To Cash, y 210 210 o 2 / Cash,. Z)r. To Merchandise, 18 60 18 2 2 Merchandise, Dr. To Cash, /? 753 50 753 4 2 7 Henry Van Dyck, Dr. To Merchandise, ' r. To Merchandise, ^4 29 29 4 2 Henry Van Dyck, Dr. To Mdse. *6 17 05 17 4 2 Expense, Dr. To Cash, 100 I 100 2 2 Cash, Dr. Tk> Merchandise? 37 50 87 41345 15 41345 | 50 50 20 80 05 50 134 JOURNAL,- SET II. NEW YORK, FEBRUARY 17, 1861. 2 4 Amounts forward, Cash, Z>r. To II. C. Spencer, -*? 41345 54 15 ;41345 54 15 4 2 S. S. Randall, Dr. To Merchandise, 90 22 60 22 53 1 2 Peter Cooper, Dr. To Merchandise, 2 44 44 8 > E. F. Hill, Dr. To Merchandise, &J 32 40 32 40 1 >> I Sundries, Dr. To Jonas Clark, Cash, Bills Receivable, iw 3000 3000 6000 3, 2 Smith r. To Cash, 500 500 <2 J Cash, Dr. To Merchandise, ?? 10 40 10 40 2 ,. o Cash, Z>r. To Merchandise, J?xP 36 36 4 2 Expense, J>r. To Cash, 100 100 61108 05 51198 05 135 Dr. LEDG-ER,-SET II. Stock. Cr. 181 T88T" 1 Feb. 1 To Sundries, 1 15500 Feb. 1 By Sundries, 1 17070 28 " Balance, 2103 ft A " Loss & Gain L5 533 17603 05 17603 Dr. Bills Receivable. 151 1 1861 Feb. 1 To Stock, 1 1050 Ft-l 28 By Balance, 4478 3 " Mdse., 1 423 " 23 " Jon. Clark, 3 3000 | 4473 4473 | i Dr. 3?eter Cooper. Cr. .8*1 184K. 1 Feb. 1 !S Stock, 1 1750 Feb. 28 By Balance, 1794 " 20 Mdse^ 3 44 1794 1794 Jonas Clark. Cr Feb. 1 To Stock, 1 6000 Feb. * By Sundries, 8 6000 V x 136 Dr. LEDGER,- SET II. Cash.. Or. 1861 i j 1861 Feb. i To Stock, 1 8270 Feb. 1 By Mdse., I 1732 5 " Mdse., 67 3 " Geo. Davis, 750 7 2 18 60 6 " Mdse., 2 210 15 37 50 8 i) n *'53 f>0 H 17 " H. Spencer, 3 54 n 10 " J.Hath'way 4000 23 " JonasClark, 3000 15 " Expense, 100 2ti " Mdse., 10 40 25 " Smith&Sons 3 3000 27 36 26 " Bills Pay'be 600 n 28 i> " Expense, " Balance, 100 843 11493 50 ' 11493 50 i Dr, Merchandise. 1961 1Sf,t Feb. n 1 5 To Cash, " Bills Payable I n 1732 250 iFeb. 2 3 By S. S. Randall " Bills Rec'ble, 1 it 37 423 6 "Cash, 2 210 " 4 " H. C.Spencer n 54 8 " 753 >0 I M 5 "Cash, n 67 " " Loss & Gain, 783 05, " 6 " B.F.Carp'nt'r 2 82 it 7 " Cash, n 18 it 9 " H.Van Dyck " 118 % 12 " J.Ilathaway, it 95 l.H " L. Fairbanks, it 29 U "H.Van Dyck, n 17 15 "Cash, " 37 18 " S. S. Randall, 3 19 20 " Peter Cobper n 44 22 " K F. Hill, n 32 25 " Geo. Davis, it 53 26 " Cash. N 10 27 36 n 26 " Balan., (Jnv.) II 2!500 9678 55 3678 i 137 s Dr. LEDGER,- SET II. Bills ^Payable. Cr. 1861 E eb - 2( 28 ^j8ft* 3 60C to* 1861 Feb. 1 5 By Stock, " Mdse., 1 1 50C 25( 75C T5C Dr. Smith. & Sons. 1861 Feb. 26 23 To Cash, " Balanct, 3 3000 ; 1000 -1861 Feb. 1 By Stock 1 600Q 6000 6000 Dr. George Davis. Cr. 1861 1861 Feb. a To Cash, 1 750 Feb. 1 By Stock, I 750 Fflb. 25 To Mdse., 8 63 60 Fob. 28 By Balance, 58 Dr. James Hatliaway. Cr. Ml 1861 Feb. 10 To Cash, 2 400fl| Feb. 1 By Stock, 1 8250 n n 12 28 " Mdse., " Balance, 1 95 SO 4154 2d 8250 00 * 8260 138 Dr. LEDGER -SET IL S. S. Randall. Or. 1861 Fob. 2 IS To Mdse., n 1 3 37 22 50 50 * 28 By Balance, o 60 60 I Dr. Henry C. Spencer. Cr 1S61 Feb. 4 To Mdse, 1 54 . 181 Feb. 17 By Cash, 3 64 - Dr. Hem~y "Van IDyck. Cr. 186t Feb. n 9 14 To Mrtse., It M 2 it 118 17 20 05 K 23 By Balance, 185 21 135 25 135 Dr. . L. Fairbanks. Cr. isei Feb. 13 To Mdse., 2 29 ; |3 =1 By Balance, 89 Dr. Expense. Cr. 1S1 Feb. ii 15 28 To Cash, n n 2 8 100 JOO m j>; By Lota & (Jam too 200 - ?00 139 LEDGER,- SET II. Dr. E. F. Hill. Or. Ffb. 22 To Mdse. 3 32 40 1861 22 fty Balance, Si 33. F. Carpenter. 1881 Feb. 6 To Mdse, 2 82 1861 FJj. 28 5y Balance, 82 Loss and Grain. 1861 [1861 Feb. 23 Tc Expense, L-l 200 Feb. 28 By Mdse., L2 733 05 " Stock, 688 05 733 05 733 OS : Dr. Balance. Cr. 1861 1861 Feb. 23 To Mdse., L2 2500 Feb. 28 By BiUs Pay'ble Ll 250 " Bills Rec'ble, w P. Cooper, Ll Ll 4473 1794 ' " M ti n " Smith & Sons " J. Hathaway L3 L3 3000 4154 20 " Cash, L2 348 II " Stock, Ll 2103 05 " Geo. Davis, L3 53 60 " S. S. Randall, L4 ! 60 " H.VanDyck, L4 135 25 | _ " It Fairbanks, L4 29 n N " E. F. Hill, L5 32 40 11 " B.F.Carpen'r L5 82 9507 25 950" 25 ! 140 wpw^wGo^QOTw^o^wop;, r/5 P o ST! *^ w ook< of entry. Red ink entries are always transferred to the npponite side from where they are first written, for the reason that they indicate an excess of that aide, 144 CLOSING THE LEDGER. Balance account. The next account, Peter Cooper, is closed in the same way. The next, Jonas Clark, already balances, and we close it by simply ruling the double red lines. The next, Cash account, is closed in the same manner as Bills Receivable, the balance being transferred as a resource to Balance account. The Merchandise account shows a gain, and the balance is transferred to the credit side of Loss and Gain account. Bills Payable account shows a liability, and the balance is transferred to the credit side of Balance account. Smith & Son's account also shows a liability, and the balance is transferred to the credit side of Balance account. George Davis' account shows a resource, and the balance is transferred to the debit side of Balance account. James Hathaway's account shows a liability, and is transferred to the credit of Balance. S. S. Randall's, Henry Van Dyck's, and L. Fairbank's accounts, all show resources, and are transferred to the debit side of Balance. Ex- pense account shows a loss, and is transferred to the debit side of Loss and Gain. E. F. Hill's and B. F. Carpenter's accounts both show a resource, and are transferred to the debit of Balance. "We have now the results of all the accounts exhibited under the heads of Loss and Gain and Balance, and if the balances have been properly transferred, these accounts, together with the (unclosed) Stock account, must be in equilibrium. To test this, we next take a Trial Balance of these three accounts, which AVC call the Second Trial Balance. Dr. Or. Stock, 15500 17070 200 733 05 Balance, 9507 ?f> 7404 *>o 25207 25 25207 25 Having satisfied ourselves, by this test, that the balances have been properly transferred, we now proceed to accomplish the grand object of closing the Ledger, by carrying the net gain from the Loss and Gain to the Stock account. The Stock account now con- tains the capital invested increased by the gain, which must, of course, equal the present worth, as shown by the Balance account. We now close Stock account into Balance, which must produce an equilibrium of the Balance account, and complete, in that account, the record of resources and liabilities. 145 CLOSING THE LEDGER. The Balance account is used in these Sets for its convenience in collecting, under one title, all the resources and liabilities. The same effect may be produced by bringing down the balances under the REAL accounts. This -latter method is adopted in business, and particularly where the record is continued in the same Ledger. From these remarks and applications we ave prepared to submit the following order of closing the Ledger, which the student will do well to observe particularly, and to follow out in practice. ORDER OF CLOSING. First Open an account with " Loss and Gain" (if not already opened), and another with " Balance," the former to contain the losses and gains, and the latter the resources and liabilities. Second. Ascertain from the inventory if any property remains unsold ; and, if so, credit each account for which such property was originally debited, with the value of that unsold, making the entry in red ink, " By Balance," and transferring the amount directly to the debit side of Balance account, making this entry in black ink. "To Merchandise," or "To Real Estate," or any other account from which the amount is transferred. The Ledger accounts will each show, now, one of the four following results, viz. : a Resource, a Liability, a Gain, or a Loss. Third. Omitting Stock (or the Partners' accounts), commence with the first account in the Ledger. First ascertain which of tho above results it sho^js, and make the closing entry accordingly. If the difference represent a resource or a liability, enter upon the smaller side, in red ink, " To," or " By Balance," as the case may be, and transfer the amount in black ink to the opposite side of the Balance account. If the difference represent a gain or loss, enter on the smaller side in red ink " To" or " By Loss and Gain," and transfer the amount in the same manner to Loss and Gain account. Close all the accounts (except Stock or Partners'), and transfer the balances as directed. The Loss and Gain account will now show on the debit side all the losses, and on the credit side all the gains, the difference being the net loss or net gain. The Balance account will show on the debit side all the re- sources, and on the credit side all the liabilities, the difference being the real interest or present investment of the proprietor or proprietors. Fourth. Take a second Trial Balance, or a Trial Balance of the remaining open accounts : Stock (or Partners'), Loss and Gain, and Balance. If the balances have been properly transferred, the debits and credits of these accounts, taken together, must be equal. 146 BALANCE SHEETS. Fifth. Close Loss and Gain account into Stock, or, if it be a part- nership business, into the partners' accounts, dividing the gain or loss, according to agreement. The Stock or Partners' Accounts will now show the original investment increased by the gain, or de- creased by the loss ; the difference being the present net investment. Inasmuch as the Balance account shows the same thing, they must, of course, agree. Sixth. Close Stock (or Partners' accounts) into Balance account, which must equalize that account, it showing now, on one side, the total resources, and on the other side the total liabilities, and pre- senting, in the most condensed form, the exact present condition of the business. BALANCE SHEETS. Is commercial language a " Balance Sheet " signifies the syste- matic arrangement of facts, for the purpose of exhibiting at a view the condition of business. The forms in use are various, according / O to the necessities of the occasion or the ingenuity of the accountant. Of these the example given on page 141 comprises the most com- plete and symmetrical of which we have a knowledge. The follow- ing explanation will be found serviceable in preparing this sheet for the entries. The method of enforcing the facts will be apparent to any diligent student. 1. Take a sheet of paper of proper size, and for a border, rule double red lines around the margin. 2. Rule the parallel head-lines, leaving proper space for double captions, as in the example. j3. Ascertain the number of Ledger accounts to be represented ; which will embrace nil the accounts in the Trial Balance that do not cancel.* If the business is that of a single proprietor, usually * Should there he a large number of personal accounts it will be foun 10 Bbls Pork, 2000lbs, @ 10*. 3. Sold Lewis Lyman on ^, 30lbs., Coffee, @ 18* ; 20 do. Rice, 5i*; 100 do. Sugar, 6*. Received Cash of Robert Barker, in full of %, $ . 4. Paid Cash for Stationery, and incidental expenses, $20. 5. Sold Alonzo Mitchell, on %^ 1 Bag Rio Coffee, 80lbs., 18* ; 20 gals. N. O. Molasses, & 50* ; 30lbs. Rice, & 5i*. Bo't of Peter Duff, for Cash, 300lbs., English Dairy Cheese, 20* ; 250lbs., Butter, 18*. Sold John R. Penn, on his note @ 30 ds., 5 Boxes Soap, 350lbs., 10*; 6 Bags Rio Coffee, 485lbs., 16*. 6. Bo't of S. S. Packard, on our note 10 ds., 40 Hf. Chests YII Tea, 2356lbs., 35*. Sold Charles Strong, for Cash, 10 Hf. Chests Tea, 580lbs., 38*; lOOlbs. English Dairy Cheese, 22*. 9. Soid Samuel Davis, for Cash, 50lbs. Butter, 20* ; SOlbs. Coffee, 18*; 30 gals. Molasses, 50*. 10. Sold Henry D wight, for Cash, 30 gals. Molasses, 50*; lOlbs. Rice, 6*; 1 Box Soap, 75lbs., 10*. 12. Paid Clerk's salary. in Cash, 815. Bo't of James Simpson, on %, 15 Bbls Crushed Sugar, 2520lbs., 10*. 15. Rec'd Cash on % of Henry Ivison, $100. Sold Thomas Hunter, on %, 5 Hf. Chests Tea, 275lbs., 50*; 50lbs. English Dairy Cheese, 23*; 25lbs. Rice, 5*. Sold Henry Ivison, on #, 20 gals. Molasses, 50*; 3 Boxes Soap, 210lbs., 10*. 16. Rec'd Cash in full of J. C. Bryant's %, $- -.Sold W. H. Joeckel, for Cash, 2 Bbls. Crushed Sugar, 330lbs., 11*. 17. Sold Lewis Lyman on % 50lbs. Rio Coffee, 20*; lOOlbs. Crushed Sugar, 11 *. 19. Paid Cash in full, for our note, favor of S. S. Packard, dated, Feb. 6, due this day, $824 60. 20. Sold Robert Burns, for Cash, EXERCISES FOR THE LEARNER. lOOlbs. Crushed Sugar, 11*. Received Cash of Henry Ivison, in full of %, $153 50. 22. Paid James Simpson Cash in full of % $252. Sold Philip Stone, for Cash, "4 Hf. Chests Tea, 225lbs. & 50?. 23. Sold Thomas Hunter, on %, SOlbs. English Dairy Cheese, @ 25* ; 75 do. Crushed Sugar, & lit ; 15 do. Coffee, & 20* ; 2 Boxes Soap, 140lbs., @ 10*. 25. Sold Alenzo Mitchell, on #,2 Hhds. Cuba Sugar, 1850lbs 6*. Received Cash in full for J. M. Brad- street's note of the 3d ult., due March 5, $171 50. 27. Paid Cash for Store rent, $100. STATEMENT. The Student is expected to produce the following result from the foreeroins: transactions : Trial Balance. Stock, 2500 3045 95 Bills Receivable, 284 10 171 50 Cash, 3242 50 1920 60 L. Fairbanks, 293 75 Alonzo Mitchell, ...... 137 05 Merchandise, (Amount unsold, $2500.) Bills Payable, 3036 824 10 60 961 3324 45 60 Springer & Whitenian, .... 33 50 1250 50 Expense, 135 Thos. Hunter, 188 10674 60 10674 60 Balance Account. Resources. Liabilities. Merchandise, 2500 Bills Receivable, 112 60 Cash, 1321 90 L. Fairbanks, ....... 293 75 137 05 Bills Payable, 2500 Springer & Whitenian, .... 33 50 1250 50 Thos. Hunter, 188 Stock, (Present worth,) 836 30 ' 4586 80 4586 So 151 QUESTIONS FOR REVIEW, QUESTIONS FOR REVIEW. APPROPRIATE answers to the following queries may be found on the pages indicated. The more direct reference by figures will be henceforth discontinued. EEMAEKS, PAGE 128. 1. In what sense is this a continuation of Set I?" 2. "What different plan is adopted in the keeping of property accounts ? 3. When is it customary to keep other than a general Merchandise account? 4. When the business commences with a capital, what is the first entry ? 5. What account is credited with the investment ? 6. What does Stock account represent ? 7. What is the technical meaning of the term "Sundries?" 8. Why is it used in Journal or Ledger entries? OEDEE AND PURPOSE OF CLOSING THE LEDGEE, PAGE 142. 9. In what condition was the Ledger, Set I. left? 10. Under what circum- stances is this sufficient? 11. When is it necessary to "close" the Ledger accounts? 12. When an account is closed how is the balance or difference exhibi- ted? 13. How many classes of accounts are there in Double Entry? 14. What is the distinction? 15. What are they called? 16. What is meant by REAL accounts? 17. What by REPRESENTATIVE ? 18. What is the object of closing the Ledger? 19. Why are the gains and losses in business permitted to remain in the REPRESENTATIVE accounts, instead of being carried directly to the proprietor's account? 20. How often is it customary to credit the proprietor with his gains? 21. To what condition is the Ledger restored when the gains and losses are transferred to the proprietor's account ? 22. What is the first thing necessary after posting all thfe entries to the Ledger? 23. In what sense is the Trial Balance a test of the correctness of the work ? 24. What, two features are presented by the Trial Balance on page 143 ? 25. How may the present condition of a business be shown? 26. How are resources shown on the Ledger? 27. How liabilities? 28. How losses? 29. How gains? 30. What two accounts may be opened to to show these results? 31. What is contained in the Loss and Gain account? 32. What in the Balance account? 33. Can you learn from the Merchandise account the value of Merchandise unsold? 34. How is it ascertained ? 35. When the Merchandise account is credited with the inventory of unsold Merchandise, what will the account represent? 36. What is the process of closing an account? 37. In closing an account, why is the difference placed on the smaller side? 38. What test have we for ascertaining if the balances of the accounts are properly transferred? 39. What accounts are contained in the "Second Trial Balance?" 40. Why will the difference in the Stock account, after the gain or loss has been transferred, equal the difference in the Balance account when all the resources and liabilities have been entered? 41. Is it necessary in closing the Ledger to open a Balance account? 42. How may the same effect be produced? 43. What is the first step in the order of closing? 44. Second? 45. Third? 46. Fourth? 47. Fifth? 48. Sixth? 152 SET III, (Corresponding with Bet III, Part I.) DAY BOOK AND JOURNAL COMBINED. WITH FULL STATEMENTS AND EXPLANATIONS, SHOWING THE DISTINCTIONS BETWEEN SINGLE AND DOUBLB ENTRY. REMARKS. THE transactions comprising this set are the same as those in Set III. Part I. and are .selected for the purpose of showing the exact difference between Single and Double Entry. A careful study of the two sets in their similar and dissimilar points will open to the mind of the student a clearer distinction between the two methods of accounts than could be effected by any other form of reasoning. This distinction is most apparent in the Ledger where it will be seen that the additional accounts required by Double Entry relate exclusively to particular speculations, and are useful, mainly, to denote special gains and losses. If our anxiety to keep this fact prominently before the mind should lead us into unneces- sary repetitions, we still think this evil less than that of leaving the point obscure. Another decided improvement in this over the preceding Set (II.), relates to the form of the oi'iginal book of entry, which here combines the Day Book and Journal. There is no doubt as to the preference of this plan over that of separate books. The only objection that can be arrayed against it is the difficulty sometimes of combining the historical with the journal expression in a manner to preserve the unity of the entry without destroying the indi- viduality of its parts. A little practice, however, will remoA'e this difficulty, and lead the student into a concise and symmetrical form of expression, at once comprehensive and business-like. We have not deemed it necessary to repeat the auxiliary forms of Sales Book, Cash Book, and Bill Book, for the reason that we could suggest no improvement. Auxiliary Books are used for their convenience in classifying the departments of business, and do not pertain necessarily to any particular theory or method of accounts. In Single Entry, however, they are often essential in preserving a sufficient record of resources and liabilities, which in Double Entry are shown independently in the Ledger. The manner of closing the accounts differs from Set II. only in bringing down the resources and liabilities under the accounts themselves, instead of transferring them to a separate account like " Balance." A few of the accounts, containing only one item, are 4nnecessarily closed, and the balances brought down. This plan is ,metimes adopted in business, for the purpose of exhibiting the condition of affairs on the Ledger at some certain date. The method of showing general results through a detailed state- ment is commended to the careful attention of the student. 154 JOURNAL DAY BOOK,-SET III. ALBANY, JULY 1, 1861. 1 SUNDRIES, Dr. To H. B. BKYANT, 9075 For Investment, as follows. 1 MERCHANDISE, As per Inventory, 4750 2 BILLS REC'BLE, " " Bill Book, 1500 2 CASH, " " Cash Book, 1200 2 JOHN R. PENN, Balance of %, 500 3 L. FAIRBANKS, " 750 3 ALONZO GASTON, " 375 1 SUNDRIES, Dr. To H. D. STRATTON, 8000 For Investment, as follows. 3 REAL ESTATE, House and lot, vaL at, 5000 2 CASH,* Am't in Union Bank, 3000 3 EXPENSE, Dr. 5 2 To CASH, 5 Paid for postage stamps, pens, & 250 5 Mdse., n 27 50 11 3 " Mdse., 2 17 50 7 Expense, 3 25 H 7 " A. Gaston, ii 375 8 n 15 75 8 " Mdse., 3 19 82 10 A.T.Stw.&Co n 300 H 10 ' Bills Rec'blc, n 500 15 H. B. Bryant, 4 75 H 12 ' Mdse., 4 33 50 19 Expense, 5 15 )) 16 1 L. Fairbanks, " 350 20 ii 10 18 ' Mdse., i) 252 21 i) n 183 > 20 ' V. M. Rice, 5 30 'i:> Bills Payable 6 75 ) 21 ' Amos Dean, n 50 " Expense, ii 25 1 23 ' Mdse., 6 234 26 A.T.Stw.&Co Y 457 I 24 i it " 106 n 31 By Balance^ 1.2 5881 :>t ) n 1 E. B. Rico, " 42 45 ) 25 ' Mdso., 163 20 1 27 i >t 7 138 72 T 29 i 154 ) II ' J. R. Penn, 250 ) 30 1 Mdse., 75 7280 19 7280 \'j Aug 1 To Balance, 5881 94 163 8 ,Dr. LEDGER,- SET III. !L. Fairbanks. Cr. 1861 1861 July I To H. B.Bryant, 1 750 July 16 By Cash, 4 350 31 " Balance, L8 400 750 750 Aug I To Balance, 400 Dr. .Alonzo G-aston. Or. 1861 July 1 To H.B. Bryant, 1 375 1861 July 7 By Cash, 2 375 - Dr. !Real Estate. Or. 1861 July 1 To H.B.Bryant, To Balance, 1 5000 1861 July 31 By Balance, L3 5000 Aug 1 5000 Dr. Expense. Cr. 1861 1861 July 1 To Cash, 1 5 July 31 By Loss & Gain 1,6 468 T3 2 n 10 4 2 175 7 3 25 8 i) 15 75 19 5 15 20 i) 10 21 183 n 25 6 25 463 75 463 75 164 Dr. LKDG-EH,-SET III. James Johnson. Or. 1861 July 3 To Mdse., To Balance, 2 192 1861 July 31 By Balance, L4 192 Aug 1 192 Dr. Clafliri, Mellen & Co. Or 1361 July 15 To Bills Payable 4 575 1861 July 5 By Mdse., 2 575 Dr. A.. T. Stewart & Co. Or. 1861 July it 10 26 To Cash, )i >i 3 7 300 457 1861 July 5- By Mdse., 2 757 757 757 Dr. E. B. Rice. O. 1S61 July 7 To Mdse., 2 42 45 1861 July 24 By Cash, G 42 45 Dr. Benjamin 3?ayn. Or. 1861 July 10 To Mdse., To Balance, 3 23 41 1861 July 31 By Balance, L4 28 41 Aug 1 23 41 165 Dr. LEDG-ER-SET III. Bills Payable. Or 1861 18C1 July 25 To Cash, 6 75 July 12 ByH D.Strat'n 4 75 it 31 " Balance, L5 575 ii 15 " Claf.M.&Co. 575 650 650 Aug 1 By Balance, L5 575 Dr. .A.mos Deaii. Or. 1361 1S61 July 13 To Mdse., 4 180 July 21 By Cash, 5 50 31 " Balance, L5 130 180 180 Aug 1 To Balance, L5 130 Dr. Victor M. Hice. Cr. 1861 1861 July 20 To Mdse., 5 82 88 July 20 By Cash, 5 30 n 31 " Balance, L5 52 89 82 88 82 88 Aug 1 To Balance, L5 52 Dr. James Slielden. Cr. 1861 July 23 To Mdse., To Balance, G 132 24 1861 July 31 By Balance, t,5 132 24 Aug 1 L5 132 24 Dr. "William Sliepard. Cr. 1861 July 25 To Mdse., To Balance, 6 37 55 1S61 July 31 By Balance, L5 37 65 Aug 1 L5 37 55 166 Dr. LEDG-ER-SET III. John Belden. Or. Q 1861 July 26 To Mdse., To Balance, 7 216 50 1861 July 31 By Balance, L6 216 DO Aug 1 LG 216 50 Dr. Cha's j^. Seeley. Or. 1SG1 July 30 To Mdse., 1 107 40 1861 July 31 By Balance, L6 ; 107 40 Aug 1 To Balance, L6 107 40 Dr. Loss and Grain. Or. 1861 1861 July 31 To Mdse., Ll 242 13 July 31 By KB. Bryant Ll 852 94 " Expense, L3 463 75 )> I) " H.D.Strafn Ll 852 94 705 88 705 88 167 STATEMENT. THE following detailed statement should be carefully compared with the Single Entry Statement on page 67, that the characteristic features of the two systems may be thoroughly appreciated. We have designated the REAL and REPRESENTATIVE accounts in the Trial Balance and have included all the Ledger accounts, that the general, footings may be made to agree with the footings of the Journal. In rendering the Statement, those accounts which cancel or balance, are, of course, omitted. With this form of Trial Balance it would scarcely be necessary to do more than carry the balances of the accounts into the statement columns as in the Statement on page 121 ; but this form gives the philosophy more in detail. Trial Balance. Total Footings. Balances. Dr. Or. Dr. Or. 1 H. B. Bryant, Real, 75 9075 9000 2 H. D. Stratton, Real, 75 8000 7925 3 Merchandise, Rep., 6109 50 2867 37 3242 13 4 Bills Receivable, Real, 2120120 500 1620 20 5 John R. Penn, Real, (Canceled.) 500 500 6 Cash, Real, 7280 19 1398 25 5881 94 7 L. Fairbanks, Real, 750 350 400 8 Alonzo Gaston, Real, (Canceled.) 375 375 9 Real Estate, Rep-, 6000 5000 10 Expense, Rep., 463 75 463 75 11 James Johnson, Real, 192 192 12 Claf., Mellen & Co, Real, (Canceled.) 575 575 13 A. T. Stewart, Real, (Canceled.) 757 757 U E. B. Rice, Real, (Canceled.) 42 45 42 45 15 Benjamin Payn, Real, 23 41 23 41 1C Bills Payable, Real, 75 650 575 17 Amos Dean, Real, 180 50 130 18 Victor M. Rice, Real, 82 SS 30 52 88 19 James Shelden, Real, 132 24 132 24 20 William Shepard, Real, 37 55 37 55 21 John Belden, Real, 21C 50 216 50 22 Chas. A. Seeley, Real, 107 10 107 40 25170|07 25170 07 17500 00 17500 Inventory, Mdse. unsold, ' $3000 Real Estate 5000 168 STATEMENT. Losses and Gains. Representative Accounts. 3 10 MERCHANDISE Cost , ... . 6109 50 Losses. Gains. 242 463 13 75 705 S3 Proc Sales, $'2867 3T Value unsold, 3000 00 5867 37 Net loss, . . EXPENSE, Outlay for Expenses, TOTAL NET Loss, . . 77. B. ffs., f net lot*, . $352 94 ILD.Strat., " " 352 94 705 88 705 88 Resources and Liabilities. Real Accounts. 4 6 7 11 ir> 10 17 18 19 .'0 21 22 1 2 1. from Inventories of unsold prvperty. MERCHANDISE, . REAL ESTATE, 2. From Ledger Accounts. BILLS RECEIVABLE, Others' notes received, $212020 " dis. of, 500 00 Resources. Liabilities. 3000 5000 1620 5881 400 192 23 130 52 132 37 216 107 20 94 41 88 24 55 50 40 575 8647 7572 06 06 12 " " on- hand, CASH, Amount received, . . $7280 19 paid out, . . 1398 25 " on hand, . . L. FAIRBANKS, Our % against him, $75000 His " " us, . 350 00 He owes us, .... JAMES JOHNSON, Hz o^ces us, .... BE.VJ. PAYN, " .... BILLS PAYABLE, Our notes issued, . . $65000 " " redeemed, . 75-00 " " ouMancfg, AllOS DEAN, Our % against him, $18000 His " " us, . 50 00 VICTOR M. RlCE, Our % against him, $82 88 His " " us, . 30 00 He owes us, . , . . JAMES SHELDEN, " " " .... WILLIAM SHEPARD, " " " . . . . JOHX BELDEN, " " " .... CIIAS. A. SEELEY, .... H. B. BRYANT, His net investment, . $9000 00 " loss, . . . . 352 94 JTlS PRESENT INTEREST. H. D. STRATTON, His net investment, . $792500 " " loss, .... 352 94 IIlS PRESENT INTEREST, 16794 jjjj 16794 ? EXAMPLES FOR PRACTICE. THE following examples are to be rendered in the form of the Statement on page 169. EXAMPLE 1. Trial Balance. Cr. "Warren P. Spencer, (Partner,) . . 700 5724 58 J. C. Bryant, . . do. . . 5024 58 Merchandise, (Amount unsold, $5000,) 12000 7594 Cash, 15752 9,5 9692 84 4000 1500 Bills Payable, 9000 12000 E. G. Folsom, ...".... 750 . E. R. Felton, 123 75 965 Expense, 175 42501 00 42501 "ocT EXAMPLE 2. Trial Balance. Dr. Cr. James W. Lusk, (Partner,) . . . H. W. Ellsworth, do. ... H. C. Spencer, . . do. ... 398 17594 72 98 4500 5000 4500 15329 50 Bills Receivable, 7500 4300 Merchandise, (Inventory, $1000,) . Real Estate, ( do. 5000,) . Expense, . . " 6794 5000 150 5382 125 50 Bills Payable, 4000 5700 2000 Samuel Ogden, 1400 44837 00 44837 00 EEMAEKS, PAGE 154 1. 'What is the purpose of Set III ? 2. "With what previous set does it correspond ? 3. Where is the distinction between Single and Double Entry most apparent ? 4. To what do the additional accounts in Double Entry relate ? 5. For what are they useful ? 6. What improvement has this set over Set II ? 7. What is the objection usually urged against combining the Day Book and Journal ? 8. What is tho general purpose of auxiliary books ? 9. For what are they used in Single Entry ? 10. In what does the method of closing the accounts in this Ledger differ from tho preceding? 11. Is it usual to bring down single items in the Ledger? 12. When is this proper ? Nora. Let this set be followed by the " Exercises" on page 69. 170 SET IV. (PARTNERSHIP.) JOURNAL, CASH BOOK, AND SALES BOOK, USED AS PRINCIPAL BOOKS. REMARKS. THE characteristic feature of this set consists in the peculiar arrangement and use of the original books of entry. Hitherto the transactions, whatever auxiliary books have been used, have all been entered in the Journal, and from thence posted to the Ledger. This plan, although having some advantages, is objectionable upon the ground of too much labor, nearly all the transactions being entered twice or more before being carried to the Ledger. The plan of posting directly from the original books of entry, such as the Cash Book, Sales Book, etc., is not only practical and business-like, but serves, in the most striking manner to enforce the theory of the science, and to disarm that class of objectionists who insist that Double Entry requires vastly more writing than Single Entry. The only difficulty in the way of posting directly from the original books lies in the danger of conflicting the entries, or posting the same amounts twice. For instance, the debit side of the Cash Book comprises in itself a double entry, which is equivalent to the Journal entry " Cash Dr. To Sundries."' In posting from the Cash Book, the total of the debit side is carried to the Cash account in the Ledger, and the item comprising that amount to the credit side of the various accounts mentioned, among which is Merchandise. It is very evident that if all the Merchandise sold be credited from the Sales Book, the amount sold for cash would be credited twice, hence the necessity of an extra column in the Sales Book for Cash sales which are omitted in posting from the Sales Book. The special " Mdse." and " Expense " columns in the Cash Book are to save the necessity of so many special entries to these accounts in the Ledger. The method of posting from the Cash and Sales Books is extremely simple. The amounts in the " General " column of the Cash Book may be posted at any time the page of the Ledger being indicated in the margin, the "Mdse." and "Expense" columns at the end of the month, or as often as it may be best to close the Cash Book. The sales for Cash are marked " C.B. " in the margin of the Sales Book, and the amounts extended into the " Cash " column. The other accounts from the Sales Book may be posted at any time, the page of the Ledger being indicated in the margin. The sales for notes are marked inside the margin, "B.R." and, of course, posted to Bills Receivable account. Instead of in- dicating the page from which the transactions are posted, the initials of the original book are given in the Ledger. 172 JOURNAL -SET IV. CHICAGO, SEPTEMBER 1, 1861. 2 Merchandise, 6750 1 To J. R. Penn, 6750 Am't invested, per Inventory 1 J. R. Penn, 1750 3 To Bills Payable, 1750 Assumed for him, 1 Sundries, To J. C. Bryant, 5900 Amounts invested, 1 Bills Rec'ble, J. Smith's note, $750 00 H. Young's, " 750 00 1500 1 J. T. Calkins, Balance of , 500 2 E. R. Felton, do. 376 2 J. H. Goldsmith, " 1170 2 Jas. Atwater, 1250 3 P. C. Schuyler, 1104 1 J. C. Bryant, To Sundries, 900 Liabilities assumed, 3 To Chas. Taylor, Bal. of %, 500 3 J. W. Lusk, 400 3 J. W. Lusk, 400 3 To Bills Payable, 400 Our note 30 ds. to Bal. % 1 Bills Receivable, 1104 3 To P. C. Schuyler, 1104 His note GO ds. to Bal. % 16804 00 16804 00 1T3 1861 Cash... CASH BOOK,- Dr. Sept. 1 2 3 n 5 7 10 12 14 15 16 17 )i 18 22 !) 25 it 26 27 n 28 I! 29 it 30 1 V V 1 V V V V 2 V V V 1 1 3 V 2 V 2 V V 2 V 2 V V V 1 3 V 2 2 S. S. Packard, . . Am't Invested, .... Mdse. T. W. W. Bales Book, . Mdsc Petty Sales. P. C. B., . J. T. Calkins, . . On %, Mde. Gener 5000 200 750 150 750 34 1000 376 170 500 750 14 2702 il. 25 50 27 363 54: 89 28 105 737 58 138 128 94 112 83 58 117 156 87 112 175 72 25 90 50 25 83 44 75 94 50 75 50 94 Mdse. D. V. B. Sales Book,. . Mdse., .... Petty Sales. P. C. B., . Mdse., .... " " " . . Mdse. J.A. Sales Book, . . . James Atwater, . On %, Mdse. Petty Sales. P. C. B., . Mdse., .... " " " . . Mdse n . . . . W. B. Sales Book, . ^ J. T. Calkins, , On %, . Bills Receivable, . J. Smith's note, ; . . . Interest, .... On same, Mdse., .... Petty Sales. P. C. B., . J. H. Goldsmith, . On %, Mdse., .... Petty Sales. P. C. B., . E. R. Felton, . . In full, Mdse., .... Petty Sales. P. C. B., . Mdse., .... " " " . . J. H. Goldsmith, . On %, Mdse., .... Petty Sales. P. C. B., . James Atwater, . On %, Mdse., . . . . K. McG. Sales Book, . Mdse., .... Petty Sales. P. C. B., . Mdse., .... " " " . . Bills Receivable, . II. Young's note, . . . Interest, .... On same, Mdse., .... Petty Sales. P. C. B., . Total to Merchandise, Total to Cash, 2702 27 12397 02 - 174 SET IV. 1861 .Cash. Or. Expense. General. Sept. 1 V Expense, .... Postage Stamps, .... 3 2 3 Charles Taylor, . . On a /c, 300 4 V Expense, .... 2 Tons Coal, $5, . . ; 10 6 V Expense, .... Bill of Stationery, . . . 15 i) V Expense, .... Hands, for Shop-work, . 150 7 2 Mdse., Invoice Cloths. J. B., . 3000 10 V Expense,. . . . Gas Bill, 15 13 V Expense, .... Hands, for Shop-work, . 175 15 3 Bills Payable, . . Our note, favor II. B., . . 1000 )i 3 Interest, .... On same, 46 75 18 V Expense,. . . . Clerks' Salaries, .... 112 20 V Expense,. . . . Hands, for Shop-work, . 250 25 V Expense, .... Rent to Sept. 80, . . . . 100 26 V Expense, .... Porterage and Drayage, . 35 28 V Expense, .... Hands, for Shop-work, . 275 30 V Expense Partners' Salaries to date, 606 i 74C 1746 Total to Cash, X 1 > < I7K 6092 BALANCE OK HAND, ... - 6304 4 9 27 / 12397 02 175 SALES BOOK,- SET IV. CHICAGO, SEPTEMBER 1, 1861. Cas h. Gene) id. S- THEROX "VV. WOOLSON, J/i?. Pleasant, /a. 4 Doz. Shirts, 2d quality, 48 $1 00 $48 00 6 " Union Neckties," 72 " 38$ 27 36 20 " Linen -Hdkfs., 240 " 50? 120 00 3 pea. Cassimere, 150yds 1 25 .187 50 c^x $382 86 Dwc. off, 5*% 1914 363 72 \ IRA PACKARD, Peru, Ind., 50 Boys' overcoats, $5 50 $275 00 50 " " " 7 50 ' 375 00 650 B.R. Naie Gmo. x^ D. V. BELL, Chicago. 1 Dress suit for self, $50 00 1 Overcoat for son, 15 00 1 Box Hdkfs. 6 doz. @ $4 00 24 00 89 / # J. H. GOLDSMITH, Detroit. 2 pcs. Eng. B'dc'th, 100yds $4 00 $400 00 50 Military coats, per order, " 10 00 500 00 900 // x JAMES ALLEX, Dubuque. 20 Zouave uniforms, $25 00 $500 00 1 Pee. Stri'd Satin, 50yds. " 5 00 250 00 fc>^ $750 00 Disc, off Satin, @ 5^ 12 50 737 50 X -/ - JAMES ATVVATER, Madison. 1 Lot ready made clothing viz : 10 Coats, $3 00 $30 00 20 3 50 70 00 50 " 5 00 250 00 8 Pair Pants, 3 00 24 00 25 " 4 00 100 00 50 Vests, 1 50 75 00 25 " 3 00 75 00 1 Overcoat, 15 00 039 1190 22 2189 00 176 SALES BOOK -SET IV. CHICAGO, SEPTEMBER 15, 1861. 2 ^; ^>y \ \ \ ^ &/ fcrX U .U Amounts Forward, WILLIAM BAKEK, Springfield. 6 doz. Cravats, 60 & 75$ $45 00 3 : " 36 " $1 00 36 00 9 " Linen Hdkfs. 108 " 50$ 5400 Cash,. General. 1190 128 156 22 25 75 2189 575 730 2500 1700 1875 9569 2702 27 $135 00 Disc, of, 5<% 6 75 J. T. CALKINS, North Bend, Ind. 50 Military C'ts, (Privates) $10 00 $500 00 5 " " (Officers) " 15 00 75 00 SX C. D. BRAGDON, Rock Island. 50 (Ready made) Coats, @ $5 00 $250 00 100 prs. Pants, " 3 00 300 00 50 doz. Collars. " 1 50 75 00 5 " F. Y. Shirts, 60" 175 10500 B.R. Nole Gmo. ?<% 8 25 .*/? E. R. FELTOX, Peoria. 75 Complete Uniforms, $25 00 Sales on time, to credit of Mdse. Sales for Cash, posted from C.B. Petty Sales, entered alone on Cash Book. Total Mdse. sold, 1475 1227 22 05 12271 2t 177 Dr. LEDGER- SET IV. S. S. Packard. Cr. 1861 Sep. 1 By Cash, CB 5000 Dr. John H. !Penn. Cr. 1861 Sep. i ToBillsPayable J. 1750 1861 Sep. 1 By Mdse., J. 6750 Dr. J. C. Bryant. Cr. 1861 Sep. i To Sundries, j. 900 1861 Sep. 1 By Sundries, j. 5900 Dr. Bills [Receivable. Cr. 1861 1861 Sep. 1 To J. C. Bryant^ j. 1500 Sep. 17 By Cash, CB 750 20 " P.C.Schuyler j. 1104 29 CB 750 )! 1 " Mdse., SB 650 )> 18 i) i) SB 730 )1 20 it SB 2500 Dr. J. T. Calkins. Cr. 1861 1861 Sep. 1 To J. C. Bryant, J. 500 Sep. 2 By Cash, CB 200 15 " Mdse., SB 575 ii 1C CB 150 178 Dr. LEDGKEK,-SET IV. Cash.. Or. 1861 Se> 30 To Sundries, CB 12397 02 1861 Sep. 30 By Sundries, CB 6092 75 Dr. HVEercliandise. Cr. 1S61 1861 Sep. 1 To JT R. Penn, J. 6750 Sep. 30 By Cash, CB 2702 21 7 " Cash, CB 3000 i) " Sundries, SB 9560 Dr. E. H. Felton. Dr. J. EL Qoldsmith. Or 1861 1861 Sep. 1 To J. C. Bryant, J. 376 Sep. 25 By Cash, CB 376 30 " Mdse., SB 1875 istil 1861 Sep. 1 To J. C. Bryant, J. 1170 Sep. 22 By Cash, CB 1000 5 " Mdsc., SB 900 B 26 CB 170 Dr. James .A.twater. 1881 isr.i Sep. 1 12 To J. C. Bryant, " Mdse., J. SB 1250 639 Sep. it 10 27 By Cash, CB CB ' 750 500 - I 179 3 Dr. LEDG-EK,-SET IV. P. C. Sclmyler. Cr. 1861 i 1661 Sep. 1 To J. C. Bryant, j. 1104 Sep. 20 By Bills Rec'ble j. 1104 Dr. Charles Taylor. Cr. 1861 Sep. 2 To Cash, CB 300 1861 Sep. 1 ByJ. C.Bryantf j. 500 Dr. James ~W~. Cr. 1861 1861 Sep. 15 ToBillsPavable j. 400 Sep. 1 By J.C.Bryant, J. 400 25 " Mdse., SB 1700 - Dr. Bills Payable. Cr 1861 1861 li Sep. 15 To Cash, CB 1000 Sep. 1 By J. R. Penn, J. 1750 15 " J. W.Lusk, J. 400 Dr. Interest. Cr. 1S61 1861 Sep. 15 To Cash, OB 46 75 Sep. 17 By Cash, GB 34 25 ii 29 " " CB 14 H i i 180 Dr. LEDGER,- SET IV. Expense. Or. 4 1861. Sep. 30 To Cash, CB 174G EXERCISES FOR THE LEARNER. IF 1 O TJ R T H SERIKS. THE following routine is a continuation of the business of Set IV, and the transactions should be entered in the proper books and posted in accordance with the plan ai.d instructions of the Set, using the same books, and producing at tho close, a general result of tlie whole business. As this set is by far the mo~t practical in tho treatise, it peculiar points should be thoroughly impressed upon the mind. The student should exercise much caro in the symmetrical arrange- ment of the original Books of Entry. The accompanying initials will indicate the books to bo written up, and their order. Memoranda. October 1. Bo't of Dunham & Brokaw on %, Invoice of Mdsc. amounting to 86000, (J.) Sold James Johnson, Freeport, for Cash, 1 doz. Fancy Neckties, $1 each ; 12 doz. prs. Lisle Thread Stockings, Q $3 per doz., (S.B., C.B.) 2. Paid Shop-hands, Cash, 8300, (C.B.) Received Cash for Petty Sales, $119, (C.B.) 3. Received Cash of J. II. Goldsmith, in full of %, $900, (C.B.) Sold E. R. Felton, on %, 6 doz. French Yoke Shirts, $18 per doz.; 10 doz. Knit Undershirts, $7 per doz. ; 8 doz. pr. Knit Drawers, $8 per doz., (S.B.) 5. Received Cash for Petty Sales, $120, (C.B.) Sold Robert Ilarmer, Vandalia, for Cash, 15 Summer Coats, $2 ; 20 do. Vests, @ $1 50 ; 6 doz. Cut-throat Collars, @ $2 per doz., (C.B.) 7. Paid Cash for repairing store, $150, (C.B.) Received Cash for Petty Sales, $94 83, (C.B.) 8. Received Cash of J. T. Calkins, in full of %, 8725, (C.B.) Sold Jacob Horn, Mil \vaukee, on his note @ GO ds., 50 Complete Uniforms, $20, (S.B.) Received Cash for Petty Sales, $110, (C.B.) 9. Paid Shop- hands, Cash, $297, (C.B.) Sold J. W. Lusk, on %, 2 'doz. Ready made Coats, 24 @ $5 ; 15 prs. Pants, $3 75 ; 30 Vests, $2 ; 1 Fine Overcoat, $25, (S.B.) 10. Received Cash for Petty Sales, $119 50, (O.B.) 12. Received Cash in full for P. C. Schuyler's 181 EXERCISES FOR THE LEARNER. note, 01104, (C.B.) 15. Sold Abraham Jackson for Cash, 5 doz. Byron Collars, $2 per doz. ; 4 doz. D'Orsay Cravats, $12 per doz., (S.B.,C.B.) Received Cash for Petty Sales, $157 30, (C.B.) 16. Paid Dunham & Brokaw, Cash on %, $3000, (C.B.) Paid Shop-hands, Cash, $263, (C.B.) Received Cash for Petty Sales, $85 9'0, (C.B.) 18. Sold E. R. Felton, on %, 1 Case Overalls, 6 doz. prs. $6 per doz. ; 2 Cases Summer Frocks, 12 doz. $18 per doz., (S.B.) Received Cash for Petty Sales, $115, (C.B.) 20. Received Cash of E. R. Felton on %, $1500, (C.B.) Sold Robert C. Spencer, St. Louis, for Cash, 10 Military Coats, @ $15; 5 do. (officers,) 25, (S.B., C.B.) Received Cash for Petty Sales, $143, (C.B.) 21. Paid Cash for salaries, $117, (C.B.) Sold Chas. Taylor, on /, 1 Piece French Cassimere, 50 yds. $3, (S.B.) Received Cash for Petty Sales, $125, (C.B.) Paid Dunham & Brokaw, Cash in fiuTof %, $3000, (C.B.) 23. Paid Shop-hands, Cash, $375, (C.B.) Received Cash for Petty Sales, $75, (C.B.) 25. Sold James Atwater, on %, 1 doz. Boy's Frocks, 12, $2 ; 3 doz. do., 36, $5, (S.B.) Received Cash for Petty Sales, $85 90, (C.B.) 27. Received Cash of James Atwater, in full of %, $843, (C.B.) 28. Paid Cash for Gas Bill, $15; Rent, $100, (C.B.) 30. Paid Shop-hands, Cash $400, (C.B.) STATEMENT. The above transactions properly entered will produce the follow- ing result. S. S. Packard, Face of Ledger. Balances. J>r. Cr. Dr. Cr. 1750 900 7484 19272 15750 2745 450 2361 1000 46 3763 45 25 75 5000 6750 5900 2604 14109 16183 1876 500 400 2150 48 75 95 75 4880 5162 869 1961 3763 70 25 5000 5000 5000 433 50 1150 2 95 ~gT J. R. Penn, J. C. Bryant, . . ' . . . Bills Receivable, .... Cash, Merchandise, E. R. Felton, . . . . Charles Tavlor, .... J. W. Lusk, Bills Payable, Interest, 55522 45 55522 45 ! : 16635 95 16635 182 PRACTICAL HINTS FOR TEACHER AND PUPIL. IN the preparation of this book the authors have kept in view one important fact, viz : that iu order to become a practical accountant, the student should learn not only to think for himself, but to give his thoughts appropriate form and expression ; hence the introduction of intermediate " Exercises for the Learner," and " Examples for Practice," intended to throw him upon his own resources, and rescue him from the too common error of copying. We feel sure that this feature will commend itself to all who use the book, and especially to the faithful teacher who is satisfied with no progress which is not real The three qualities essential to success in Accountantship are, 1. ACCURACY ; 2. NEATNESS ; 3. DISPATCH ; and tlieso are to be acquired only through practice. Instead therefore, of omitting any of the practical Exercises, or passing lightly over them, they should bo regarded as vital and indispensable, and should they not afford sufficient practice, additional exercises should be given by the teacher or self-imposed by tho student. Tho limited space afforded renders it impossible to carry out in detail, all the labor which actual business would require in tho way of filling out notes, drafts, checks, etc., or to suggest appropriate) forms for such letters and documents as would ba necessary in conducting tho business represented ; but tho student should bo required to supply this deficiency, with such aid as the teacher may think prudent to offer. The following brief hints may afford some assistance in carrying out tho intention of the work. ORDER AND NEATNESS. There is no error more fatal to tho student in Accounts than the impression which so generally prevails, that a theoretical knowledge of general principles will prepare him for the duties of the Counting Room. It is true that without this knowledge, he need never hopo to succeed ; and equally true that with it, alone, ho will be quite as unfortunate. Although in enumerating the neccessary qualifications of an Accountant we have placed NEATNESS, seomd iu the list, it is tho first which attracts attention, and is of the utmost importance in establishing a reputation for practical accountantship. Neatness, in Book-keeping is the result of good writing and tasteful arrangement. It is a mistaken idea conceived by ambitious youth and fostered by peripatetic writing masters, that the ability to form a few wondrous curves in the execution of capital letters, or the adornment of a fency 183 PRACTICAL HINTS. title constitutes the chief qualification of a business writer. Practical men are not apt to appreciate qualifications of this kind, but insist, gather, on the utmost modesty of display and simplicity of arrangement. A professional flourish is as much out of place on a pago of business record, as a daub of oil color on a marblo statue. Uniformity, legibility, and adaptation to space and pur- pose should be the characteristics of business writing ; and he who fails in these essentials will need something more than a certificate from somo professor of the art to save him from just condemnation. These strictures are not in disparage- ment to any style or system of penmanship, nor designed to underrate the profession which lends such a charm to our thoughts by setting them in graceful symbols; but to. exalt the practical above the fanciful; and to insist upon a proper recognition of the standard of taste which the experience and observation of business men have adopted. Rapidity of execution is an essential element in business writing, but even this should bo subordinated to neatness. In the selection of script for tho principal forms in Part I. reference has been had to tho standard of neatness above indicated. It is not expected that the student will attempt to copy the style of tho writing, but it is hoped that ho may seek to emulate its legibility and taste in arrangement. Particularly should he exercise great care in avoiding errors which will necessitate erasures. Nothing so destroys tho beauty of a page as erasures and interlineations. Even occasional blotting is preferable to occasional scratching. Where it is possible, errors should bo corrected by counter entries, thus affording an explanation, withouj; destroying tho harmony of tho page. Finally let tho student practice until ho becomes proficient in ruling. In using red ink great caro should be had to keep it pure; and to that end, it is never allowable to use a pen that has been dipped iii black. Even steel pons are thought to destroy tho brilliancy of red ink, and quills are preferred on that account. A steel pen, however, is the best for ruling, and needs only to be kept perfectly clean. For ruling with a common steel pen, no rule is so convenient as tho round, but to uso it skilfully requires much practice, and a steady hand. PROFICIENCY IN MATHEMATICS. The processes of Book-keeping seldom call into practice the higher departments of mathematics ; albeit a thorough mathematician other things being equal will make the best accountant. The kind of proficiency most available to a Book-keeper is facility and accuracy in addition. The ability to add long columns of figures with speed and certainty is one of tho very best claims a young man can present for a position of trust. So highly is this accomplishment esteemed by business men, that where it is wanting other qualifications sink into comparative insignificance. A clerk who " never makes a ,mistake " is sure of promotion and remuneration. There are many theories as to tho surest and most rapid method of adding, and occasionally somo eccentric genius electrifies tho world with an exhibition of almost magical power in this direction ; but tho only thing that can with safety bo relied upon is practice f.ithful and continued practice. Tho student should be required to write down long columns of figures of various numerical values, and test his powers by adding, fir!t in one direction and then in the other ; occasionally trying two and three columns at a time. We give below three simple processes of retaining the figure to be carried a very important matter with beginners. The first is tho usual method of writing the carrying figure small under tha unit amount of the 184 PRACTICAL HINTS. column which produced it. The second requires the addition of each separate column to be written down on a waste space commencing with the right hand column and carry ing" to the next as in the usual method;' these separate amounts placed in their order one under the other will present in their unit figures, counting upward, the general result. The third method consists of the proper arrangement of the independent sum of each column, so that, being added, the proper result is secured. EXAMPLES. First Process. Second Process. TJiird Process. 1829 25 743 18 1st coll 2d imn, 50 29 5 2 4 2562 28 3d 34 3 2 145 19 4th 39 3 6 : 2823 25 7574 28 4291 83 25 61 5th 6th 39 19 994 90 36:: 16::: 19994 9 19994 90 333 55 The process of adding two or more columns at once is much more simple than is generally supposed ; requiring little, if any, more skill than the common method The only point of difficulty is the necessity of adding units to units, tens to tens, etc. To give the student an idea of the process, we will take the two cent-columns in the above example, and add them together. Commencing with tho lower amount, we proceed: 64 and 3 are 67, and 80 are 147, and 8 are 155, and 20 aro 175, and 5 aro 180, and 20 are 200, and 9 aro 209, and 10 aro 219, and 8 are 227, and 20 are 247, and 8 are 255, and 10 are 265, and 5 are 270, and 20 aro 290; 'which is tho sum of tho two columns. It will bo seen that wo separate each amount into units and tens, adding the units to tho units and the tens to tho tens of the accumulating result. ~We will now vary tho process by commencing at tho top and adding downward; and also by adding the tens first: 25 and 10 aro 35, and 8 are 43, and 20 aro C3, and 8 aro 71, and 10 arc 81, and 9 aro 90, and 20 aro 110, and 5 are 115, and 20 aro 135, and 8 aro 143, and 80 are 223, and 3 are 226, aal 60 are 285, and 4 are 290 ; the same result as before. By continued practice of this kind tho student will soon bo able to nstonish himself with his own pro- ficiency. Let him practice on two columns, until ho becomes thoroughly familiar with the process, and then take three, and four. Tho necessity of keeping his mind constantly on tho alert for fear of adding tens to units, and units to hundreds, will serve to quicken his powers of concentration, and develop tho practical resources of his mind. TO DETECT ERRORS IX THE TRIAL BALANCE. Undoubtedly the best method for guarding against the trouble of finding errors in the Trial Balance is not to make them ; but as this advice is much more easily given than followed, and as, in despite of the best efforts, Trial Balances do frequently 185 PRACTICAL HINTS. fail to equilibrate, a few hints as to the most approved methods of discovering the errors may be kindly received. In the first place let it bo remembered that while the Trial Balance is not a sure test of the correctness of the Ledger, no Doublo Entry Ledger can be correct that does riot balance; hence, the necessity of knowing that the sides are equal. The Trial Balance is simply the summing up of the debit and credit sides of the Ledger to ascertain if they are equal. If the trial should prove tbat they are not equal, the cause must exist either in entries being omitted, posted to the wrong side^or in wrong amounts. A little observation will enable the accountant to classify the error under one of the above heads. If the precaution indicjfted in our first Double Entry sets bo taken, viz: to carry the total amounts posted into the Trial Balance and either side agrees with the footing of tho Journal columns, the difficulty is easily overcome, as tho difference between tho sides will show not only the error or combination of errors, but tho side of tho Ledger upon which they occur. For various reasons, however, it is not always convenient to embrace the total Ledger entries in the Trial Balance : therefore for general purposes, wo would suggest the following process for detecting errors : First, make sure that an error exists. It is often the case that an overweening anxiety to have the sides of the Trial Balance equal actually produces a suppositions error, by dissipating the mind while engaged in ascertaining tho result, and thus persistently, though erroneously realizing its own fears, by errors in addition. If an error seems to exist, before attempting to find it, go carefully over the work of addition, proving it in every way. If the test should prove that the sides do not equal, refer to the Ledger accounts, and ascertain that tho proper amounts liavo been transferred to the Trial Balance. Foot up the accounts very carefully, and permit no doubt to exist that the exact condition of the Ledger is shown in tho Trial Balance. Second, If tho error still exists, ascertain its exact amount, and then look carefully for tho same amount in tho Journal, which may have been omitted in posting. If no such an amount should appear, or should not prove to have been omitted, next ascertain if any Journal Entry exists of half tho amount, which being posted to tho wrong side would produce tho difference. Should this test prove, unsuccessful, ascertain if the difference bo divisible by 9, and if so, look carefully for a transposition of somo amount posted.* Third, Should this process fail tho last resort is to check the postings. First ascertain that the Journal entries balanco and then go carefully over tho work, checking in pencil mark, all entries that have been properly posted both on tho Journal and the Ledger. Tho most reliable pro- cess of checking is to have one person take tho Journal and call off the Ledger titles and amounts, slowly and distinctly the debits first, and credits next whilo another examines the Ledger entries to see if they correspond. Many practical accountants adopt tho plan of thus checking before attempting to take a Trial Balance, for tho purpose, not only of facilitating the labor but of being assured that tho Ledger is absolutely correct. We cordially commend the practice, believing that if it is adopted, and faithfully carried out there will bo little need of resorting to any other method to ensure a balanco. Above all, let the student hunt up his own errors of balance ; for while it is true that all such errors are the result of careless- It is a curious fact that tho difference between any given amount composed of two or moro figures, and the same figures transposed. Is divisible by 9. For example, the difference between 75 and 57 is 18; between 120 and 210, 90; between 195 and 159, 3fi ; etc., nil of which differences 18, 90, and 36. are divisible by nine, without a remainder. The illustration maybe carried to any extent, with the same results. 186 PRACTICAL HINTS. ness, the adoption of means to detect them, will tend, in the greatest degree to perfect his mind in those practical questions and labor, necessary to the full development of his powers. It is the duty of the teacher to open up to the pupil's mind the bearings of tlio various principles of the science he would inculcate, as well as to aid him in the application of those principles; but practical results should be the student's own work. For these he should be held responsible ; and should never be allowed to fall into the loose habit of making errors that his teacher may find them. RESOURCES AND LIABILITIEa These terms are used extensively in this work, and their importance in properly defining the condition of the business has been forcibly set before the student. He has been taught that certain Ledger accounts are used to show resources, and cer- tain others to show liabilities, and that tho correspondence between the resources and liabilities thus shown must agree in a certain sense, with the accounts showing gains asd losses. Any careful observer, however, must be aware that all classes of resources are not equally valuable ; and that, in tho course of trade, persons may become indebted to us both on note and account who will never pay ; the resource thus represented being absolutely valueless. In estimating the condition of a con- cern, therefore, it is well to know whether the books are truthful; that is whether the resources exhibited on their pages are absolute or fictitious. (The liabilities aro always presumed to be genuine.) The importance of this precaution will bo apparent when we consider that all gains in business, as shown by representative accounts, are predicated upon the integrity of the resources. For instance, suppose we sell A, $500 worth of Merchandise, and take his note for it. In recording the transaction, we credit Merchandise, and debit Bills Receivable. In estimating our gains and losses, we, of course include among the proceeds of Merchandise this amount, which adds $500 to our gains. Our Merchandise account is closed, and the result finds its way into the Loss and Gain account, thus having an important bearing upon the apparent prosperity of the business. But suppose this note should prove worthless. It is now evident that the $500 credited to Merchandise account was not a legitimate product, and that all gains predicated upon it are necessarily fictitious. But there aro other resources represented in the Ledger, the exact value of which is uncertain, they may bo worth their face, or half of it, or nothing. How shall they be treated in a general cxpoaicion of affairs? Should wo consider them all valueless, and close them into Loss and Gain, tho error may bo as great as to permit them to remain and represent actual worth. The most approved method of disposing of this class of accounts, is to permit them to remain upon tho Ledger, but to neutralize their effect by opening an account showing fictitious liabilities of the same amount An appropriate title for this account is " Suspense." Whon therefore doubtful resources exist on our Ledger, and wo do not wish to represent anything more than actual gains, tho process should bo to debit Loss and Gain, and credit " Suspense " with tho amount of the doubtful resources. If any of these aro afterwards paid, or their value becomes tangible, it is very easy to restore them by debiting Suspense and crediting Loss and Gain. This method is far preferable to tho more usual one of closing up all doubtful accounts into Suspense. The Suspense account in tho latter case would represent either a loss or a resource. If a loss tho amount may as well go at once to tho Loss and Gain account ; and if a resource, it 1ST EXCHANGE. had much better remain under its own more appropriate title. But the chief objection to this course would be the exhibiting of accounts as closed, which are yet owing and may be paid. If Mr. A, for instance, whom we thus consider doubtful, should desire to see hia account in our Ledger, that he may pay it, it might be awkward to inform him that, having considered his account worthless we had carried it to Loss and Gain. He might not desire to change our estimate of the value of his indebtedness. EXCHANGE. Exchange is a term used to denote that commercial usage by which individuals are enabled to cancel debts at a distance without the transmission of money. This is effected through a species of commercial paper known as "Bills of Exchange." A Bill of Exchange is a written order addressed to a person directing the pay- ment of a certain sum of money, either upon its presentation, or at a specified time thereafter. There are two classes of Exchange, domestic and foreign. DOMESTIC EXCHANGE consists of drafts, notes, checks, certificates of deposits, etc., the parties to which reside in the same country. FOREIGN EXCHANGE is usually represented by drafts, the parties to which reside in different countries. They are usually drawn in sets of three or more, one of which being honored, the others become void. The separate bills are sent by different routes, or at different times, and the first that comes to hand, if either, is honored. Foreign Bills of Exchange are made payable in the currency of the country upon which they are drawn, instead of that where they originate. FORM OF A SET OF EXCHANGE. EXCHANGE FOR 1000. New York, July 1, 1861. Ten days after sight of this my first Bill of Exchange, (second and third of same date and tenor unpaid) pay to S. S. Packard or order, One Thousand Pounds Ster- ling, value received, with or without further advice. H. D. STRATTON. To GEORGE PEA BODY & Co. ) Bankers, London. o EXCHANGE FOR 1000. New-York, July 1, 1861. Ten days after sight of this my second Bill of Exchange, (first and third of same date and tenor unpaid) pay to S. S. Packard or order, One Thousand Pounds Ster- ling, value received, with or without further advice. H. D. STRATTON. To GEORGE PEABODY & Co. ) Bankers, London. ) 188 EXCHANGE. EXCHANGE FOR 1000. New- York, July 1, 1861. Ten days after sight of this my third Bill of Exchange, (first and second of same date and tenor unpaid) pay to S. S. Packard or order, Ono Thousand Pounds Ster- ling, value received, with or without further advice. H. D. STRATTON. To GEORGE PEABODY & Co. ) Bankers, London. ) FORMS OF NOTES, DRAFTS, CHECKS, ETC. The following forms of notes, drafts, checks, receipts, etc., comprise the great bulk of business paper entering into the various departments of domestic trade. Notes. 1. Individual Note. ,. . $500. NEW-YORK, July 1, 1861. One day after date, I promise to pay M. B. Scott or order, Five Hundred Dollars, value received. JACOB HINDS. 2. Joint Note. $1000. BUFFALO, May 1, 1861. Sixty days after date, we promise to pay N. C. "VFinslow, or order, at New- York and Erie Bank, Ono Thousand Dollars, value received. J. C. BRYANT, W. P. SPENCER. 3. Joint and Several Note, (with interest.) $1500. CLEVELAND, January 10, 1861. One month after date, we or either of us promise to pay John R. Penn or order, Fifteen Hundred Dollars, value received with interest from date. E. G. FOLSOM, E. R. FELTON, 4. Principal and Surety Note. $600. CHICAGO, July 10, 1861. Thirty days after date, I promise to pay James Richards or order, Six Hundred Dollars, value received. H. B. BRYANT, Principal. E. B. ROCKWELL, Surety. 6. Chattel Note. $400. DETROIT, April 12, 1861. Three months from date, for value received, I promise to pay to John Jones or order, Four Hundred Dollars, in Pine Lumber, at the then market rate, the same to be delivered as per his order, within the limits of the city of Detroit. HENRY P. SMITH. 189 EXCHANGE. 6. Non-negotiabk Note. $375. ALBANY, June 10, 1861. One month -from date, I promise to pay James Cruikshank, Three Hundred and Seventy Five Dollars at his office. W. H. CLARK. Drafts. 1. Time reckoned from sight. $500. PHILADELPHIA, June 12, 1861. At ten days' sight, pay to the order of Daniel Slote, Five Hundred Dollars, value received, and charge to account of L. FAIRBANKS. To PACKARD & PENN, ) 18 Cooper Inst N.Y. J 2. Reckoned from Date. $750. WASHINGTON, B.C. April 28, 1861. Ten days after date, pay to Austin Packard or order, Seven Hundred and Fifty Dollars, value received, and charge to my account. ZALMON RICHARDS. To IVISON, PHINNEY & Co. ) 48 Walker St., N.Y. | Due Bills. 1. For Cash, Drawing Interest. $175 ffr. ST. Louis, July 1, 1861. Due Henry C. Spencer, on demand, One Hundred and Seventy Five fW Dollars, with interest from date. WM. H. BEEBE, 2. For Merchandise, without Interest. $100. CINCINNATI, June 12, 1861. Due R. M. Bartlett, One Hundred Dollars, payable in "Wheat, at market price, on the first day of September next. WILLIAM MOORK. Orders. 1. To apply on Account. BALTIMORE, April 12, 1861. Mr. J. Austin Sperry will please pay to the bearer, Fifty Dollars, in Merchandise, on my account. J. D. HINDB. 190 EXCHANGE 2. In fuU of Account. GBANVILLE, 0., Sept. 10, 1861. THOMAS PEASE, ESQ. Please pay to John McDonald or bearer, One Hundred Dollars, from your storey and this shall be your receipt in full of my account. JAMES G. IRWIN. Receipts. 1. On Account. $400. Received, January 1, 1861, Four Hundred Dollars, on account of James "W. Lusk. S. C. GRIGGS & Co. 2. In futt of all demands. $575. ROCHESTER, June 19, 1861. Received of Geo. W. Eastman, Five Hundred and Seventy-five Dollars, in full of all demands. D. "W. FISH. 3. To apply on Contract. $1000. SYRACUSE, Jan. 12, 1861. Received of S. M. Bassett, One Thousand Dollars, the same to apply on contract for building house, dated Jan. 1, 1861. ROBERT WALLACE. 4. To apply as an Endorsement. $75. July 10, 1861. Received on tho within note, Seventy-five Dollars. JAMES SMITH. 6. Receipt for Property. NEW- YORK, Jan. 15, 1861. Received of Duncan Phyfe, the following enumerated articles to bo held in trust for him, and returned on his demand : one Gold "Watch (Hunting case), two Pro- missory notes, each dated Jan. 1, 1861, and signed by William Prentiss one for Three Hundred Dollars, due in six months from date, and one for Five Hundred Dollars, due in eight mouths from date. S. S. PACKARD. Checks. 1. Payable to Bearer. $100. MERCANTILE BANK, NEW- YORK, May 10, 1861. Pay to John Doe or Bearer, One Hundred Dollars. (No. 1963.) PETER COOPER. 2. Payable to Order. $300. MERCANTILE BANK, NEW- YORK, April 10, 1861. Pay to Charles Strong or Order, Three Hundred Dollars. PETER COOPER. 191 EXCHANGE. Certificate of Deposit. $500. EXCHANGE BANK, ALBANY, MA.RCH 1. 1861. J. T. Calkins has deposited in this Bank, Five Hundred Dollars, payable to C. C. Conant or Order, on return of this certificate. (Xo. 1900.) CHAS. EDDY, Tetter. QUESTIONS FOR REVIEW. REMARKS, PAGE 172. 1. In what consists the peculiarity of Set IV ? 2. How have the transactions been entered heretofore ? 3. What objection to entering all the transactions in the Journal ? 4. "\Vhat advantage in posting from the original books of entry ? 5. What difficulty in the way ? 6. How do you avoid posting certain entries twice ? 7. When are the amounts in the " General " column to be posted? 8. When the special columns ? 9. What reference is mado in the Ledger to the book from which the several amounts are posted ? PRACTICAL HINTS, PAGE 183. 10. What three qualifications are necessary to good accountantship? 11. How are these to be acquired? 12. In what does neatness in Bookkeeping consist? 13. What are the characteristics of good business writing ? 14. What is said of rapidity? 15. What of errors and omissions ? 16. Interlineations and Erasures? 17. What precautions should be observed in the use of red ink? 18. What kind of mathematical proficiency is most available to the Bookkeeper? 19. How is facility in addition to be acquired ? 20. What is the process of adding two or three columns at once ? 21. What is the best method of avoiding the difficulties in getting a Trial Balance ? .22. Is tho Trial Balance a sure test of the correctness of the Ledger ? 23. What is a Trial Balance ? 24. Will you give the processes for discovering an error in tho Trial Balance ? 25. What curious fact connected with the transposition of figures ? 26. What plan is recommended to guard against fictitious gains? 27. What does the " Suspense "- account show? 28. What is meant by Exchange? 29. What is a Bill of Exchange ? 30. Of what doe?' Domestic Exchange consist? 31. Foreign Exchange? 32. How are Foreign bills drawn ? 33. Why in Sets? 34. In what currency are they payable ? 192 A 000 689 389 I I V