■M-k/A' Mi r'-' ir '-^Mt: - -irr'''-'''- ■-■'''''''^^'''~'^''- '•'■"' '"'^'^-•'^-'^'^^^^ 
 
 -•v'^4fe;i, 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 
 4<^A^ 
 
 1.0 
 
 I.I 
 
 0^1^ 12.5 
 
 1^ Kii 12.2 
 
 ^ 1^ 12.0 
 
 1.8 
 
 tUUU 
 
 i 
 
 L25 iU 11.6 
 
 Kiotographic 
 
 Sciences 
 
 Corporation 
 
 ■y 
 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14S80 
 
 (716)871-4503 
 
 '^ 
 
 itiMHiAH 
 

 J^ ^ 
 
 ^^> 
 
 s' 
 
 CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICIVIH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historicai Microreproductions / institut Canadian de microreproductions historiques 
 
Technical and Bibliographic Notoc/Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best 
 original copy available for filming. Features of this 
 copy which may be bibliographically unique, 
 which may alter any of the images in the 
 reproduction, or which may significantly change 
 the usual method of filming, are checked below. 
 
 Coloured covers/ 
 Couverture de couleur 
 
 □ Covers damaged/ 
 Couverture endommag^e 
 
 I — I Covers restored and/or laminated/ 
 
 D 
 
 Couverture restaur6e et/ou pellicul6e 
 
 Cover title missing/ 
 
 Le titre de couverture manque 
 
 I — I Coloured maps/ 
 
 r~~1 Coloured ink (i.e. other than blue or black)/ 
 
 Cartes g6ographiques en couleur 
 
 Coloured ink (i.e. other than blue 
 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 Coloured plates and/or illustrations/ 
 Planches et/ou illustrations en couleur 
 
 D 
 D 
 
 D 
 
 D 
 
 Bound with other material/ 
 Reli6 avec d'autres documents 
 
 Tight binding may cause shadows or distortion 
 along interior margin/ 
 
 La reliure serr6e peut causer de I'ombre ou de la 
 distortion le long de la marge intdrieure 
 
 Blank leaves added during restoration may 
 appear within the text. Whenever possible, these 
 have been omitted from filming/ 
 II se peut que certaines psges blanches ajout6es 
 lors d'une restauration apparaissent dans le texte, 
 mais, lorsque cela 6tait possible, ces pages n'ont 
 pas 6t6 film^es. 
 
 Additional comments:/ 
 Commentaires suppldmentaires; 
 
 L'Institut a microfilm^ le meilleur exemplaire 
 qu'il lui a 6t6 possible de se procurer. Les details 
 de cet exemplaire qui sont peut-dtre uniques du 
 point de vue bibliographique, qui peuvent modifier 
 une image reproduite, ou qui peuvent exiger une 
 modification dans la m^thode normale de filmage 
 sont indiqu6s ci-dessous. 
 
 I — I Coloured pages/ 
 
 Pages de couleur 
 
 Pages damaged/ 
 Pages endommagdes 
 
 Pages restored and/oi 
 
 Pages restaurdes et/ou pellicul6es 
 
 Pages discoloured, stained or foxe 
 Pages ddcolordes, tachetdes ou piqu6es 
 
 Pages detached/ 
 Pages ddtachdes 
 
 Showthrough> 
 Transparence 
 
 Quality of pri: 
 
 Quality in6gale de I'impression 
 
 Includes supplementary materii 
 Comprend du materiel suppldmentaire 
 
 I — I Pages damaged/ 
 
 I — I Pages restored and/or laminated/ 
 
 I — I Pages discoloured, stained or foxed/ 
 
 I — I Pages detached/ 
 
 I I Showthrough/ 
 
 I — I Quality of print varies/ 
 
 I — I Includes supplementary material/ 
 
 D 
 D 
 
 Only edition available/ 
 Seule Edition disponible 
 
 Pages wholly or partially obscured by errata 
 slips, tissues, etc., have been refilmed to 
 ensure the best possible image/ 
 Les pages totalement ou partiellement 
 obscurcies par un feuillet d'errata, une pelure, 
 etc., ont 6t6 fiimdes h nouveau de fapon d 
 obtenir la meilleure image possible. 
 
 This item is filmed at the reduction ratio checked below/ 
 
 Ce document est filmd au taux de reduction indiqu^ ci-dessous. 
 
 10X 
 
 
 
 
 14X 
 
 
 
 
 18X 
 
 
 
 
 22X 
 
 
 
 
 26X 
 
 
 
 
 30X 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 X 
 
 
 
 
 
 
 
 
 
 
 
 12X 
 
 
 
 
 16X 
 
 
 
 
 20X 
 
 
 
 
 iJx 
 
 
 
 
 28X 
 
 
 
 
 32X 
 
ire 
 
 details 
 les du 
 modifier 
 
 ler une 
 filmage 
 
 6es 
 
 re 
 
 y errata 
 )d to 
 
 nt 
 
 ne pelure, 
 
 ipon d 
 
 32X 
 
 I 
 
 The copy filmed here has been reproduced thanlts 
 to the generosity of: 
 
 Library of Congress 
 Photoduplication Service 
 
 The images appearing here are the best quality 
 possible considering the condition and legibility 
 of the original copy and in keeping with the 
 filming contract specifications. 
 
 Original copies in printed paper covers are filmed 
 beginning with the front cover and ending on 
 the last page with a printed or illustrated impres- 
 sion, or the back cover when appropriate. All 
 other original copies are filmed beginning on the 
 first page with a printed or illustrated impres- 
 sion, and ending on the last page with a printed 
 or illustrated impression. 
 
 The last recorded frame on each microfiche 
 shall contain the symbol —^-(meaning "CON- 
 TINUED"), or the symbol V (meaning "END"), 
 whichever applies. 
 
 Maps, plates, charts, etc., may be filmed at 
 different reduction ratios. Those too large to be 
 entirely included in one exposure are filmed 
 beginning in the upper left hand corner, left to 
 right and top to bottom, as many frames as 
 required. The following diagrams illustrate the 
 method: 
 
 1 
 
 2 
 
 3 
 
 L'exemplaire film6 fut reproduit grdce h la 
 g6n6rosit6 de: 
 
 Library of Congress 
 Photoduplication Service 
 
 Les images suivantes ont 6t6 reproduites avec le 
 plus grand soin, compte tenu de la condition et 
 de la nettetA de l'exemplaire film6, et en 
 conformity avec les conditions du contrat de 
 filmage. 
 
 Les exemplaires originaux dont la couverture en 
 papier est imprimde sont filmds en commenpant 
 par le premier plat et en terminant soit par la 
 dernidre page qui comporte une empreinte 
 d'impression ou d'illustration, soit par le second 
 plat, salon le cas. Tous les autres exemplaires 
 originaux sont film6s en commenpant par la 
 premidre page qui comporte une empreinte 
 d'impression ou d'illustration et en terminant par 
 la dernidre page qui comporte une telle 
 empreinte. 
 
 Un des symboles suivants apparaftra sur la 
 dernidre image de cheque microfiche, selon le 
 cas: le symbols — ► signifie "A SUIVRE", le 
 symbols V signifie "FIN". 
 
 Les cartes, planches, tableaux, etc., peuvent dtre 
 fiimds d des taux de reduction diffdrents. 
 Lorsque le document est trop grand pour dtre 
 reproduit en un seul clichd, il est filmd d partir 
 de I'angle supdrieur gauche, de gauche d droite, 
 et de haut en bas, en prenant le nombre 
 d'images ndcessaire. Les diagrammes suivants 
 illustrent la mdthode. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
tm 
 
 i 
 
 i^m^j^i 
 
 HF 
 

 %^fl*' 
 
 
 
 
 >**»«»«•*. WB^i&^l 
 
THE SELF-PROVING 
 
 Accounting System 
 
 INCLUDING ILLUSTRATIONS 
 OF VARIOUS BOOKS AND FORMS IN FACSIMILE 
 
 WITH SPECIAL APPLICATION MADE TO THE 
 
 INSTALMENT BUSINESS 
 
 A MANUAL FOR BUSINESS MEN. ACCOUNTANTS AND 
 
 AUDITORS 
 
 ..^"' 
 
 .<^ 
 
 -BY- 
 
 "°.c^r.- ^o^»«.~- -:r.Tr - 
 
 f AND 
 
 J- F. BROWN, MERCHANT, OP J. F, BROWN * CO., CREDIT HOUSE- 
 
 FURNISHERS 
 
 ^ 
 
 r 
 
 -A 
 
 Nkw York and Toronto 
 P».USH.„ BV XH. SE^^oVmo .CCOU.T-BOOK COMP^.v 
 
 1897 
 
 -Ko 
 
 wwiifiiaiSMi^-' 
 
ii 
 
 ♦I 
 
 t » 
 
 .Kt5 
 
 i 
 
 COPYRIGHT 1897 
 
 BY I F BROWN AND A. O. KITTREDGE 
 
 ALL RIGHTS RESERVED 
 
 I 
 
i 
 
 PREFACE 
 
 Different features of the system of account keeping, which 
 it is the object of this book to explain, have been used by the 
 authors in various connections for periods ranging from three to 
 twenty years each. In the preparation of the work these frag- 
 ments have been collected, rearranged and perfected, and finally 
 supplemented by the parts found necessary to constitute a com- 
 plete working system. 
 
 There is nothing of mere theory about the methods pre- 
 sented. Every detail has been subjected to the severe test of 
 actual trial. The system in complete form is already in use in 
 leading business houses, to which inquirers can be referred for 
 assurances of its practical utility. 
 
 The Private Ledger and Perpetual Balance^heet, in the form 
 presented in the pages following, is one of the newest features of 
 the system, but since it was devised it has been given such exten- 
 sive use in various Hues of business that its general usefulness has 
 been fully demonstrated. 
 
 The plan in mind when the preparation of thii, volume was 
 commenced was to restrict it to a scheme of Self-Proving Ac- 
 counting for the Instalment Business. The idea of extending 
 the description and illustrations to include a complete working 
 system of accounts, adaptable to any line of business, did not find 
 favor with the authors until after a considerable portion of the 
 work had been put in type and the illustrations completed. The 
 reader, therefore, will find in various pages references to instal- 
 
 wm 
 
n 
 
 ! II um imnmiw ni l . H i l l ijpi p|i p ' 
 
 «! 
 
 iii 
 
 ^ TUK SKM'-rROVlNG 
 
 ment methods and requirements, which otherwise might have 
 been omitted, or at least accompanied by additional examples 
 drawn from other branches of business. 
 
 It would be very difficult to expound any method of ac- 
 counting intelligently and satisfactorily without introducing il- 
 lustrations taken from some branch of business or other. The 
 authors believe, therefore, that their employment of the instal- 
 ment business for this purpose, particularly in view of its peculiar 
 intricacies and complications, in the matters of analysis and ac- 
 counting provisions, will not render the volume less satisfactory 
 to the general reader. On the other hand, the applications of 
 methods made to the instalment business give the book a special 
 utiUty in an- important division of trade, which in the past has 
 been almost entirely neglected by accountants, but which, meas- 
 ured by its annual sales, is so large as to be entitled to the most 
 
 careful attention. 
 
 This work is divided into four parts. First there is pre- 
 sented an outline of the Self-Proving Accounting System, with a 
 careful discussion of the principles of analysis and classification 
 upon which it is based. Second in order there are descriptions 
 of the several leading books which it has been found convenient 
 to employ in arranging and conducting accounts upon the plan 
 outHned. Several of these are presented in miniature fac-simile, 
 with illustrative entries. Third there is a section entitled "The 
 Instalment Business," in which are presented those chapters 
 which relate more specifically to the accounting and office rou- 
 tine of retail credit sales. And fourth, and finally, there are pre- 
 sented some words of general advice to instalment merchants 
 based on much of the experience which has resulted in this book. 
 
 This volume is believed to contain a more thorough inquiry 
 into the bookkeeping wants of a particular line of trade, with an- 
 swers to all the leading questions which arise, than has heretofore 
 
 %. 
 
ht have 
 xamples 
 
 1 of ac- 
 icing il- 
 ;r. The 
 e instal- 
 pecuHar 
 and ac- 
 isfactory 
 itions of 
 a special 
 past has 
 :h, meas- 
 the most 
 
 e is pre- 
 n, with a 
 sification 
 icriptions 
 )nvenient 
 
 the plan 
 ac-simile, 
 :led "The 
 
 chapters 
 »flfice rou- 
 e are pre- 
 nerchants 
 is book, 
 rh inquiry 
 ;, with an- 
 heretofore 
 
 ACCOUNTIXO SYSTEM 8 
 
 been issued in the interest of any branch of business; and yet tlie 
 authors are sensible of shortcomings in various particulars. No 
 doubt future editions will afford the opportunity for such addi- 
 tions and amendments as will bring the work still nearer to their 
 ideal. To this end they are eager to correspond with every pur- 
 chaser and user of the volume — first, to make good any deficiencies 
 that the reader may discover, by answering direct those questions 
 which ho, may desire to propose; and, second, to secure sugges- 
 tions for additional chapters in future editions. 
 
 The object of the book is to be serviceable in the best and 
 broadest sense of the term, and this will be secured in no small 
 part of the supplementary work to be done through correspond- 
 ence and by personal interviews. 
 
 J. F. BROWN, 
 
 3-5-7 Queen St., East, 
 ToRuNio, Ont. 
 
 A. O. KITTREDGE, 
 
 257 Edgecombe Ave., 
 New York. * 
 
TABLE OF CONTENTS. 
 
 PART I. 
 
 THE SELF-PROVING ACCOUNTLNG SYSTEM. 
 
 43 Illustrations. 
 
 INTRODUCTION 
 
 What the Self-ProvlUK AeoountitiK System Ih— A Double Entry System- 
 More Than u Double Entry System— A System Adapted to Modern Re- 
 quirements— Features of I'roof— Post Inn from Original Entries— No Copy- 
 ing—Combined Records and LedKers— Utilization of Unskilled Help— Work 
 Sectlonallzed. 
 
 CLASSIFICATION OF ACCOUNTS 
 
 Two Principal Divisions- Proprietor's Accounts— Accounts of the Trans- 
 actions—Capital Account and Results of Trawiactlons— Expenses of Doing 
 Business— Losses and Gains— Disposal of Profits and Losses— Dlvktendu 
 and Divisions— Impairment and Surplus— Capital Account and Expense Ac- 
 counts—Expense Ledgers or Expenses Collectively— Buying and Selling- 
 Credits and Payments— Resource Accounts— Liability Accounts— Prop- 
 erty—Money—Debtors— Notes Receivable— Creditors— Notes Payable— Prop- 
 erty Accounts— Merchandise Account— Buying Account— Selling Account- 
 Manufacturing Account— The Fuactloos of the Manufacturing Account, 
 Buying Account and Selling Account— Department Merchandise Accounts— • 
 Real Eistate Investment— Real Estate Results— Bonds Investment— Bonds 
 Results— Store Fixtures— Manufacturing Plant— Cash Account— Bank Ac- 
 count—Debtors' Accounts— Creditors' Accounts— I'roprletor's or Partners' 
 Drawing Account— A Stockholder's Account— The Account of a Clerk or 
 Emploj-e— Purchase Ledger Account— Sundry Creditors' liOdKor Account- 
 Sundry Debtors' Ledger Account— Inetalment liCdger Account -A Typical 
 Balance Sheet— Investment Accouuts or Items of Fixed Capital— Quick As- 
 sets—Available Resources— Depreciation Accounts— Reserve Accounts— Re- 
 serve for Rebates and Allowances— Reserve for Bad Debts— Reserve for 
 Plant Depreciation. 
 
 SUBDIVISION OF THE LEDGER 
 
 Separate Ledger Volumes— Subdivisions of a Single Volume— Rulings 
 Adapted to Special Requirements— Ledger Machines— Ledger for Sales Ac- 
 counts—Ledger for Purchase Accounts— Balance Column Ledger— Ledger 
 for Expense Accounts— Combined Expense Record and Ledger— Diagram of 
 Ledger Divisions. 
 
I 
 
 8 
 
 THE SELF-PROVING 
 
 MERCHANDISE ACCOUNT 
 
 Necessnry Subdivisions— Mnnufacturiug Account— Buying Account— Selling 
 Account— Cost Prices and Selling Prices— Goods Returned- Functions of 
 the Several Divisions of tlie Merclmndise Account. 
 
 MANUFACTURING 
 
 Manufacturing as a Subdivision of a Merchandising Business— Conduit of 
 a Small Manufacturing Department— Accounts of a Manufacturing De- 
 partment, with Goods Sold at Retail— Accounts of a Manufacturing Depart- 
 ment, with Goods Sold at Both Retail and Wholesale— Costs of Manufactur- 
 ing—Manufacturing Account Should not Carry Stock— Buying Account 
 Should Cari-y Inventory— The Balance in Manufacturing Account— Material 
 Account— General Expenses— Cost Accounts— Product Accounts— Spreading' 
 the Charge of Generiil Expenses— Determining the Percentage— Basis of 
 Distribution— Materials vs. Labor— Clwing Labor Account— Closing Ma- 
 terial Accounts— Closing General Expense Account— Depreciation of Plant- 
 Wear of Machinery a Part of the Cost of Product— Subdivisions of Buying 
 Account and Selling Account- Retail Sales— Wholesale Sales— Retail Cus- 
 tomers-Trade Customers. 
 
 CAPITAL ACCOUNT VERSUS PROPRIETOR'S ACCOUNT 
 
 Necessity of Strict Classification- Capital a Fixed Quantity— Proprietor's 
 Private Account— Proprietor's or Partners' Salary— Credits for Profits— The 
 Proprietor a Debtor to the Business -The Proprietor a Creditor of the Busi- 
 ness—Partnership Agreements— Partners' Accounts— Best Method of Avoids 
 Ing Disputes in Partnership Settlements. 
 
 PART II. 
 
 SELF-PROVING ACCOUNT-BOOKS. 
 
 86 Illustrations. 
 
 CONSTRUCTION OF THE BOOKS 
 
 Use of Wide and Narrow Leaves— Reinforcement or Thickening of the Pro- 
 jecting Portions of the Wide Leaves— Fifty Lines to the Page— Numbering' 
 of the Lines— Numbering of the Pages— Combination Readings of Page 
 Numbers and Line Numbers-Reference Index of the Mercantile Ledger 
 and Instalment Ledger— Patented Features— Trade-mark-Oopyrlghts— 
 Self-Proving Accounting System Is Not a Seci-et System— No Fee De- 
 manded for Instruction— Features PubMsihed to the World— Reasonable 
 Prices for Supplies— Competition Discouraged- Piracy Made Unprofit- 
 able— Special Books to Order. 
 
 PRIVATE LEDGER AND PERPETUAL BALANCE SHEET 
 
 Construction of the Book— Arrangement of the Accounts-Relationship of 
 
 V 
 
ACCOUNTING SYSTEM 
 
 )unt— Selling 
 runctlons of 
 
 -Condui t of 
 icturing De- 
 iring Depart-* 
 Manufactur- 
 ing Account! 
 int— Material 
 s— Spreading' 
 ge— Basis of 
 ■Closing Ma- 
 on of Plant— 
 Qs of Buying 
 -Retail Cus- 
 
 JT 
 
 -Proprietor's 
 
 Profits— The 
 
 : of the Busl-t 
 
 lod of Avoidi 
 
 ig of the Pro- 
 !— Numbering' 
 ings of Page 
 Euitile Ledger 
 -Copyrights— 
 -No Fee De- 
 l—Reasonable 
 jde Unproflt- 
 
 EET 
 elationship of 
 
 the Prlviite Leilger to tlie Ot.lier Books of the System— Opening tlie Private 
 liedger— Conducting the Accounts— Daily Reports— Cross Entries for De- 
 termining Results— Balance Sheet with AVhIch to Open a Sanii»le Private 
 Ledger— A Typical Periodical Report— Tlie Report Entered— T8(M' or Cost 
 of Goods— Cross Entry Between Buying and Selling— Cross Entry Between 
 Selling and Loss and Gain— Expenses of Doing Business— Allowances for 
 Depreclalion of I'laut and Fixtures— Provision for Rel)ates and Allow- 
 ances—Provision for Bad l)el)ts— Cross Entry Between lioss and Gain and 
 Expenses of Doing Business— Net Profits Shown— Cross Entry Between 
 Loss and Gain and Dividends and Divisions— Credits to Partners' Ac- 
 counts—Dividends Paid— TransferreiK'e to Impalrmemt and Surplus Ac- 
 count—Footing tlie Closed Accounts- Balances Struck In Oik'u Accounts- 
 Balance Sheet After the Cross Entries Have Been Made— Making Cross 
 Entries at Frequent Intervals— Proving the Private Ledger— Special Ad- 
 vantages of the I'rivate Ledger— Incidental Advantages of the Private 
 liedgei-^Sectlonalizing the Bookkeeper's Work— The Terrors of a Trial 
 Balance Removed— A Trial Balance in Easy Stages— Concealment of Er- 
 rors Impossible— Location of Errors an Easy Matter. 
 
 SELF-PROVING MERCANTILE LEDGER 
 
 Construction of the Book— Monthly Accounts— Divisions of Monthly 
 Spaces— Line Nund)ers— Page Numbers— Combination Readings— Reference 
 Index— The Instant Location of Required Accounts— Allotment of Spaces 
 to Accounts— Opening tiic Ledger— Monthly Postings— Balances Caiu:ied 
 Forward— Checking Paid Bills- Monthly Statements— Self-Proving Feat- 
 ures—Locating Errors— Sectionalizing Work— Proving Page by Page— Bal- 
 ancing with the Account in Private Ledger— The Usual Form of Trial Bal- 
 ance Unnecessarj'- Monthly Summary or Recapitulation Sheet— Utility of 
 an Adding Machine— An Analysis of tlie Credit Postings— Checking with 
 Sales Book— Checking with Cash Book— Checking with Bill Books— Man- 
 agement of Credit Balances— The History of a Customer's Transactions- 
 Relationship to tlie Private Ledger and Perpetual Balance Sheet. 
 
 INSTAIiMENT LEDGER 
 
 Construction of the Book— Line Account in Principle— Entering the Names- 
 One Line to an Account— Divisions of Monthly Periods— Debit Items- 
 Credit Items— Provisions for Weekly Payments— Summary of Cash Pay- 
 ments—Analysis of Sundry Credits— Methods of Proving— Sectionalizing by 
 Pages— Footings Carried Forward or Summarized in a Special Book— Iiln«» 
 Numbers Page Numbens— Combination Readings— Reference Index— 
 lastamt Turning to Any Re<iulred Account— Opening the I^edger— Conduct 
 of the Ledger— Going Accounts Illustrated— Management of Special AlloW'* 
 ances— Closing the Accounts— Carrying Forward to a New Ledger— Special 
 Methods of Proving— Checking with Sales Book— Checking with Cash 
 Book— Management of Interest Charges— Writing Off Bad Debts. 
 
 CARRYING FORWARD LEDGER BALANCES 
 
 Construction of the Transfer Slip— Ruling and Numbering of the Slip— 
 
111 
 
 I 
 
 F 
 
 
 n 
 
 s 
 
 10 
 
 THE SELF-r ROVING 
 
 Hanping Lip— Mothod of AppljiUK— How Balances Are En tei-ed— Second 
 Position of the Transfer Sllii— The Page Turned— Balances Written in the 
 Xew Account— Method of Identifying Transfer Slips— Proving tlie Balance 
 r<xrtinga— Totaling with an Adding AhHrhlne. 
 NUMBER RECORD 
 
 Serial Numbers for Original Documents— Numbers for Sales or Order 
 Slioots— Number Record In Loose Sheet Form or Bound— System of Num- , 
 berlng— Sets of Sheets or Pages— Combination Readings of Page Number 
 and Line Number— The Use of Several Series of Number— Economy of 
 Lalior— No Accumulated Useless Sto<-k— Numbering Machines Superseded— 
 Routine of I'se of Number Record— A Sales Number Never to he Duplicated. 
 SALES RECORD 
 
 A Register of Sales Sheets— Notation of Date— Record of Order Numbers- 
 Sales AmountB— L'istributing Column*— Provision for Tsoc or Record of 
 Cost of Goods Sold— Cliecking witli Number Record— Auditor's Check— 
 What the Sales Record Shows— Management of Cash Sales— Posting frour 
 the Sales Record— Goods Returned by Customers. 
 PURCHASE RECORD 
 
 Register of Invoices— Goods Sent Back— Net Purchases-Ruling of the 
 Purchase Record— Distributing Columns— ^lanagement of Goods Shipped 
 Back— Reference Coluuuis— Invoice Number CJolunin- Posting the Purchase 
 Record— Relationship to Buying Account and Manufacturing Account. 
 CASH JOURNAL 
 
 Features of the Book— Constructijin— Cross Entries— Summary of AuxU- 
 laries- liine Numbers to be Read with Page Numbers— Bookkeeper's Dally 
 Report— Posting to the Private liCdger. 
 CASH BOOKS 
 
 Cash Receipts— Cash Disbursements— Petty Cash— Balancing Petty Cash- 
 Distributing Columns— Posting to the Cash Journal— Proving the Casb 
 Books. 
 BALANCE COLUMN LEDGER 
 
 Style of Ruling— Ac<M>uuts to l>e Opened In It— Printed Heads— Manage- 
 ment of Accounts— Ruling Off Complete Accounts- Inserting Heads with u 
 Rubber Stamp. 
 NOTE RECORDS OR BILL BOOKS 
 
 Construction— Books of Original Entry— Combined Ledgers and Posting 
 Mediums— Relationship to the Private I^edger- Method of Conducting the 
 Books— Entering a Note— Distributing Columns for Contra Accounts— 
 Where Payable— Record of Collateral and Endorsements— Monthly Ac- 
 counte of Paper Falling Due-Paper Falling Due Beyond ihe Current Year- 
 Management of Notes Payable on Demand— Interest Payments-Proving 
 the Note Records— Monthly Proofs— Method of Numbering Notes. 
 SUSPENDED LIST 
 
 Construction of the Book-Opeiilng the List— Yearly Accounts-Proof by 
 Comparing with Loss and Gain Account— Management of Credits— Carry* 
 
'ill Tf Ti 'ii -i I If 
 
 tKl— Second 
 Itteu lu the 
 he Balance 
 
 8 or Order 
 ni of Num- 
 ge Number 
 Dcononiy of 
 uperseded— 
 Duplicated. 
 
 Numbers— 
 • Record of 
 r's Cheek— 
 osting from 
 
 liuf: of the 
 Tds Shipped 
 he Purchase 
 ccount. 
 
 y of Auxll- 
 eper's Daily 
 
 :»etty Cash— 
 ig the Casb 
 
 ds— Manage- 
 [eads with ai 
 
 and Posting 
 nducting the 
 Accounts- 
 Monthly Ac- 
 irrent Year— 
 nts— Proving 
 ites. 
 
 its- Proof by 
 edits— Carry' 
 
 ACCOUNTING SYSTEM 
 
 11 
 
 iug Balances Forward— Doubtful Accounts as Carefully Supervised as lAve 
 Accounts— Name and Residence of Attorney— Record of Correspondence- 
 Record of Judgements— Combined Reading of Line Numbers and Page 
 Numbers. 
 
 EXPENSE RECORD AND LEDGER 
 
 A Combination Record and Ledger— Construction of the Book— Rulings- 
 Distributing Columns for Accounts in Private Ledger— Individual Expeuso 
 Accounts. 
 
 INDEXING 
 
 Selection of a Name Index— Using Account Numbers Instead of Page Num- 
 bers—Perpetuity of Numbers from Year to Year— liOcation of New Ac- 
 counts. 
 
 PART III. 
 THE INSTALMEN'i BUSINESS. 
 33 Illustrations. ' 
 
 GROWTH OF TH^ INSTALMENT BUSINESS 
 
 Rapid Development in the Recent Past— Supplies a Want— Basis of Secur- 
 ity—A Legitimate Business System— Profitableness of the Instalment Busi- 
 ness-Ease of Management— Advantages of the Instalment Business— A 
 Constant Income— Bookkeeping System and Business Administration. 
 
 BENEFICENCE OF RETAIL CREDITS 
 
 A Want Supplied— Instalment Purchases and Life Insurance— A Home Fur- 
 nished on the Instalment Plan— A House Bought Through Building Asso- 
 ciations—Habits of Saving Fostered— Former Abuses of the System— Charac- 
 teristics of the Modern Instalment Dealer. 
 
 THE SELF-PROVING ACCOUNTING SYSTEM APPLIED TO THE IN- 
 STALMENT BUSINESS. 
 
 Features Described— Sales Department— Delivery Department— Bookkeep- 
 ing or Office Department— Collections— Adaptability of the Self-Pi-oviug 
 System. 
 
 HOW TO INSTALL A NEW OFFICE SYSTEM 
 
 Advantage of Expert HeliJ— The Business Engineer— Adaptations to Spe- 
 eial Requirements- Making the Cliange Without Interruption to the Busi- 
 ness 
 
 DATE FOR MAKING CHANGES 
 
 An Inventoi-y of Goods on Hand the Only Coudltionr— Adaptations of the 
 Books— Special Printings. 
 
 SMALL AND LARGE STORES 
 
 The Self-Proving System Adapted to Business Enterprises of All Sizes— 
 
THE SELF-rROVIXG 
 
 Adnptetl to All Conditions of Buainoss— Capable of Expansion as the Busi- 
 ness Develops— Helps the Bookkeeper lu His Work. 
 
 ArrLICATlON FOU CKEDIT 
 
 Necessary Particulars— Advantages of a Blank— A Form Suggested— The 
 Bookkeeper's Report— The Salesman's Report— Recommendation of tha 
 Business OfBce— Manager's O. K.-rreserviug Credit Applications. 
 
 SALES SHEETS OR ORDER FORMS > 
 
 Same as Are Largely Tsed by "VVliolesale Establishments— Duplication bj^ 
 Carbon Process- Several Copies fi-om a Single Writing— Customers' In- 
 voices— Reciuisitions on Sliipping Department— The Ottice Copy— Maintain- 
 ing Order Numbers— Varialions in Printing— The Lease or Agreement on 
 the Back of the Order Slieet— Purchaser's Signature— Form for Cash of 
 Open Account Sales— Salesman's Prelindnary List— Writing Out tlie Order 
 or Invoice— SiUesman's Initials— Recording Tsoc or Cost Prices of the 
 Goods Sent Out. 
 
 LEASES, SALES CONTRACTS AND CHATTEL MORTGAGES 
 
 The Security of a l^ien or Mortgage— Limitations of Open Account Sales- 
 Terms of Conditional Sales— Form of Contract- Competent Counsel Always 
 Sliould Advlst^— De<-i«ious of the Courts To Be Wiitched— ModlUcatlons of 
 State lii \vs— A Borrowing Form— A Contract Form— Another Contract 
 Form— A Cliattel Mortgage Form. 
 
 DELIVERY OF GOODS 
 
 Requisition on the Shipping Department— Directions to the Truckman or 
 Cartei'^Receipt To Be Signetl by the Purchaser or His Representative- 
 Duplicating by Carbon Process— Requiring the Truckman or Carter to 
 Countersign the Receipt— Checking the Receipt with the Office Copy of In- 
 voice—Serial Number of Shipping Tickets or Receipts— Checking the De- 
 livery Department— Security Against Fraud— No Dellverj- Without a Sales 
 Number. 
 
 CUSTOMERS' PAY CARDS 
 
 Form of Card— Ruling and Printing of Pay Card— Charges and Credits- 
 Dates of Payments— Signature of Collector— Code for Reporting Results of 
 Collectors' Calls— Making Out the Pay Cards-Ofllce Copy and Customer's 
 Copy— Notation of Salei Numbers— Convenient Method of Turning to a 
 Customer's Ledger Account— Periodical Examination of Pay Cards— Pay 
 Cards the Basis of Correspondence with Customers— Pay Cards and State- 
 ments of Accounts —Orlg'.nals of Pay Cards To Be in Ink. 
 
 COLLECTION BOOKS 
 
 An Alternative Plan— RuUng of the Books-Management of the Books- 
 Collectors' Duties. 
 
 KEEPING CUSTOMERS' PAY CARDS 
 
 Necessity of Systematic Filing-Alphabetical Arrangement by Names- 
 Time Arrangement by Dates of Payment— Inspecting the Cards Weekly- 
 Sorting for Routes— Pigeon-hole Cases— Cases Adapted to Use In Safes— Ac- 
 eordeon Flies- Customers' Cards In Vaults— Cases In Open Office. 
 
ACCOIXTING SYSTEM 
 
 18 
 
 the Busl- 
 
 sted— The 
 n of the 
 
 Iratlon bj5 
 )iiiers' lu- 
 -Malntaln- 
 femeut on 
 r Cash of 
 the Order 
 •es of the 
 
 GES 
 
 lut Sales— 
 iel Always 
 ications of 
 ■ Contract 
 
 iickman or 
 sentative— 
 Carter to 
 3opy of In- 
 ig the De- 
 )ut a Sales 
 
 1 Credits- 
 Results of 
 Customer's 
 rnlng to a 
 Dards— Pay 
 and State- 
 
 lie Books- 
 
 y Names— 
 9 Weekly- 
 Safes— Ac- 
 e. 
 
 POSTING THE INSTALMENT LEDGER 
 
 Numerous Transactions— Small Items of Charge— Still Smaller Items of 
 Payment— The Resulting Clericnl Work— System Iteduccs Labor— Ability 
 to Use t'nskiUed Labor— Routine of Posting— Details on Pay Cards— Lump 
 Entries In Cash Book— Pay Cards as Posting Mediums— Instalment Ledgei* 
 Posted by a Team of Two— Checking the Work with the Comptometer- 
 Rapidity— Accuracy— Kive Times the Speed of f)rdinary Work— Ledger 
 Constantly Up to Date— Sorting the Cards— Posting by a Single Clerk- 
 Proof by Use of Comptometer. 
 
 COLLECTION DEPARTMENT 
 
 Need of Organization— Should Be Effectively Administered— Managed by 
 the Proprietor— Routine in a Large Establishment- Necessary Office Work— 
 Books Must Be Up to Date— Perlotlical Supervision of Accounts— Route 
 Lists for Collectors— Payments at the Office— Correspondence with Cus- 
 tomers—Collectors' Calls— Promptness in Demanding what Is Due— Friend- 
 liness Should Never Descend to Carelessness in Administration— Visiting 
 Customers Regularly— Qualifications of Collectors— Courtesy a Prime 
 Requisite— Duties of Manager of Collection Department— Prompt Action ori 
 Collectors' Reports— Checking Pay Cards with Ledger— Keeping Pay Cardd 
 lu Order— Assistance of Ledger Keepers— Specific Directions to Collectors— 
 Keeping the Work Well In Hand. 
 
 A COLLECTOR'S ROUTINE 
 
 Pay Cards Sorted with Respect to Routes— Pay Cards Arranged with Re- 
 spect to Dates— Collector's Daily Report— Use of a Code— Collector's Report 
 of Cash Received— Pay Cards as Posting Mediums— Payments to Collector^ 
 and Payments at the Office— Prompt Calls— Adjusting Dates and Hours to 
 Correspond with Route— Contributing to the Change of Address Book. 
 
 CANCELLED SALES 
 
 For Goods Returned by Customers Reverse the Entries Made When Tliey 
 Were Sent Out— Reverse Entry to be Made In Selling and Buying Accounts. 
 
 MERCHANDISE RETURNED 
 
 Taking Goods Back— Credits to the Customer's Account— Charge to Selling 
 Account— Cross Entry Between Selling and Buying Account— Getting the 
 Goods Back into Buying Account at Cost Prices— Forms Convenient for 
 Use. 
 
 PRESERVING ORIGINAL PAPERS 
 
 Sales Sheets or Orders In Duplicate— Delivery Sheets or Shipper's Ticket* 
 in Duplicate— An Adequate Assortment of Blanks— Method of Holding 
 Blanks and Carbon Sheets— A Locked Post Binder— A Transfer Binder— 
 A Post Binder Filled and Opened Near the Middle— Sheets In Post Binders 
 Better Than Ordinary Bound Books— Temporary Files for Invoices. 
 
 COMPLAINT AND INFORMATION BOOK 
 
 Utility of the Book— How Kept— What It Contains— Record of Complaint 
 Satisfied— Utility of the Book in the Management of the Business— Reasons 
 
 m 
 
I 
 
 14 THE SEI.F-rROVIXG 
 
 for Deferred Paj-nients— Record of Promises to Pny at Future Dates- 
 General Office Blotter. 
 
 CHANGE OF ADDRESS BOOK 
 
 Form of Ruling— How Conducted— Who Contribute the Information— Mak- 
 ing Entries— Posting to Pay Cards and to Name Index— Fixing Responslbll- 
 it^.—Credlt to Whom Credit Is Due— Where Book Is Kept— Accessible 
 to Both Office and Outside Force— Must Be Kept Up to Date. 
 
 STREET DIRECTORY OF CUSTOMERS 
 
 Record of Houses and Buildings In Which Are Goods Out on Lease— Inter- 
 course with Second-Hnnd Dealeiiw-tMoney Lenders— Exchanges of Cour- 
 tesies—Plans of the Dlrectoi-y- Use of Mflips and Tags— Book with Lists 
 of Street Numbera— MeWiods of Subdivision— Card Index Plan. 
 
 REPAIRING AND JOBBING 
 
 Accommodating Customera— Cost Items— Charges— Management of the 
 Accounts— ReiMilrIng and Jobbing Recoi-d— Relationship to Selling Ac- 
 count—Damages to Goods in Ti-auslt- Ohange® to Buying Account- Main- 
 taining Records of Cost— Making Pivper Charges. 
 
 SEWING AND LAYING CARPET 
 
 Recoi-dlug Costs— Crediting Selling Account— Debiting Buying Account- 
 Labor and Materials— A Ticket Systeuir-How Employed— Advantages. 
 
 (.)LD LEASE ACCOUNTS 
 
 Changing fi-om the Old Plan to the New— Consolidating the Accounts- 
 Single Pay Cards— Ada pthig the Plan to Clwumstances. 
 
 AUDITING THE BOOKS 
 
 Bueiness Men Should Regularly Examine Their Books— Daily Audits 
 Save Money- Piwision for Recording the Progi-ess of the Audit- Audit- 
 or's Check— Auditing by Professional Accountants— Carelessness Usually 
 P:-ecedes Dlohouesty— Ohecklnig Carelessness— Holding Office Employee 
 to their Lines of Duty. 
 
 MANAGING THE BANK ACCOUNT 
 
 Le<lger Account with t<he Bank— Keeping t)he Bank Account on the Stubs 
 of the Check Book— A. Check and Deposit Register— Statement of Trans- 
 actions with tlie Bonk -The Bank Account In t»he Private Ledger— Cash 
 Accounit the Inclualve Account- Deposit Tickets— Carbon Duplicates- 
 Maintaining a Number of Bank Accounts. 
 
 BUYING GOODS AND RECORDING COSTS 
 
 Getting Goods Into the Store Ready for SelEng— Cost Records— Cost 
 Marks— Ordering Goods— Recoi-ds of Oixiers- Chocking the Prices— 
 Stamiping the Invoice®— Filing the Invoices— Maintaining a Cost Book- 
 Marking Prices— RelationBlilp of Bujrlng Account to Selling Account- 
 Basis of Cost Calculations— Tagging the Goods. 
 
 RENT, TELEPHONE, TAXES, &C. 
 
 Monthly Bills— Quarterly Bllls-^Payments at the End of the Term-Pay- 
 ments In Advance-Conducting the Accounts— Expense Should be Charged 
 
•!"-n!s 
 
 ACCf )l\\TI X(S SYSTKM 
 
 V> 
 
 e Dates— 
 
 tion~Mak- 
 esponslbil- 
 Accessible 
 
 ase— Inter- 
 s of Cour- 
 wlth Lists 
 
 nt of the 
 lelling Ac- 
 uut— Maiu- 
 
 Accouut— 
 autages. 
 
 Accounts— 
 
 lly Aiicllts 
 
 dlt-Audlt- 
 
 >ss Usually 
 
 Employee 
 
 1 the Stubs 
 t of Trans- 
 dger— Cash 
 )uplicates— 
 
 cords— Cost 
 e Prices— 
 }ost Book— 
 : Account— 
 
 Term— Pay- 
 be Charged 
 
 up Monthly Irrespective of tlie Tinw^s of Payment— Accounts to Iw Offset 
 by Expense Clwirges— Payment* Made in Advanre of Service Are Repre- 
 »ente<l l>y Resource Accounts— Accumulating Accounts tr l)e Discharged 
 by Puture Payments Are lilabllltlee— Proper Cla«slflcatlca of Accounts. 
 
 AVOIDIXr, CONFUSION OF SALES NUMBERS 
 
 The Mischief of Diiplicaite Numbers— Metho<l« of Avoiding Duplications- 
 Checking the Numlxer Record— A Bill Register— The Office Numliering 
 Machine— Sales Numbers on Order Sheets— Nunil)er Record In the Auto- 
 graphic Register. 
 
 PART IV. 
 SUGGESTIONS TO INSTALMENT MERCHANTS. 
 
 CHARACTER OF THE ADVICE 
 
 Not Officious— Based Upon I^ng E2.\i)erlence— Restrlcte<l to Leading Fea- 
 tures. 
 
 ATTENTION TO CUSTOMERS' WANTS 
 
 Small People Have Small Wants— Keeping Customei^ Pleased— Making 
 Influential I<Ylends Out of Pleased Customei-s— The Virtue of Patience- 
 Discreet Action In View of All tlie Facts. 
 
 AVOIDING NUMEROUS LEASES OR CONTRACTS WITH THE 
 SAME CUSTOMER 
 Objections to Several Contraicts with one Pei'son in Progress at the Same 
 Time— Keeping the Sales Sheet Oi)eu— The Account In the Instalment 
 ledger Sliould Correspond vristh the Contract— Provieion for Recording 
 Several Sales. 
 
 PARTIAL DELIVERIES 
 
 Due to Delay In Receipt of Goods— Lack of Moajsurements— Carrying the 
 Transaction on the Order Sheet— Checking the Order Sheet When All Is 
 Completed— Management of Goods Sold for Future Delivery. 
 
 MODIFICATION OF CONTRACTS 
 
 No Changes to be Made Above Signatures^Make Out a New Lease— How- 
 to A^'old Disputes at Settlement— Cancelling an Order and Starting Anew 
 Where a Change hi Understanding Occurs. 
 
 CHANGING THE FORM OF A CUSTOMER'S ACCOUNT 
 
 Transferring the Balance from One Ledger to Another— Objections to 
 This Plan— Re\'er8lng the Emtries and tlien Starting Anew— The Ledger 
 Account Should Correspond with the Terms of the Contract— Establish 
 tlie CoiTect Rule at the Outset and Cai'efully Adhere to It. 
 
 GUARDING AGAINST DUPLICATE RECEIPTS 
 
 Oireiimstanoes Under Which Special Receipts Will Be Demanded— Care- 
 lessness of Clerks and Collectors— How Dlslionest Customers May Manage 
 
Mt ' i ^m wi iii wf 
 
 
 I 
 
 16 
 
 TiJE SELF rnovixo 
 
 — Heforo Giving the Swoiul Uwi'lpl 8«;iire the Return of the Flwt— Re- 
 phic'lnj,' Ltwt Tav Cunla. 
 CARK AHOIT RECEIPTING} "IX FULL OF ALL DEMANDS" 
 
 Collectors nncl Office Cnshiers Soiuetlnies Taken Off Their Guard— Iie>*.Keif 
 Account Should Ke Exaniluetl Before Giving the Receipt— Utility of ('ross 
 Referi'n<'es. 
 
 LOANS TO CUSTOMERS 
 
 Rea**<)U« for Advancing Money to Iimtalinont Custoniens— Method of Con- 
 diictiii); the Account— G>iK'ninj,' a SiHH"laI Account for Gash Items— Terms 
 of I'iiynieut— Kei»i)lnK' the Cash Ai»art from Che Instalment Account— 
 I'roper Cross References. 
 
 CARTAtJE AND STORAGE 
 
 Demands for CaitaKc and Storage— Advantage of Such Transaetlous- Rec- 
 ords of Service Performed— Management of Charge*— Cash Payments— 
 Cuetomers' Stonige Memorandums. 
 
 RECOVERING GOODS 
 
 Voluntarj' Surrender— Opix^ltlon by the Customer— Avoiding the Em- 
 ployment of Force— Replevin. 
 
 GOING TO LAW WITH DEBTORS 
 
 Consider the Cost— Ascertain lu Advance the Debtor's Ability to Pay- 
 Appearances Frequently Deceitful— Net Results Vei-y Often a Ixtss to the 
 Business. 
 
 INTEREST ON OVERDUE ACCOUNTS 
 
 Management of Interest Charges- Credits for Interest- Interest Record- 
 Management of Reductions Allowed In Settlement— Use of Columns In 
 Cash Journal. 
 
 VOUCHERS FOR CASH DISBURSEMENT'S 
 
 Desirability of Vouciliers— Filing Vouchers— Fixing the Responsibility— 
 Form of Vouchens— Advantage of Printed List of Accounts on Vouchens. 
 
 DATING STAMPS 
 
 A Real Economy— Advantages of Ttoeir Employment— Dating Papers 
 Generally— Automatic Time Stamps. 
 
 BAD BUYING 
 
 Indiscreet Orders— Mistake® of Judgment— Getting Rid of Bad Stock— Ad- 
 vantages Which the Instalment Merchant Has Over Others. 
 
 EXAMINATION OF RECORDS OF CHATTEL MORTGAGES 
 
 Necessity of Keeping Posted— Methods of Obtaining Information— Report- 
 ing Agencies. 
 
 DETECTIVE WORK 
 
 Necessity of Some Detective Work— Some People Are Kept Honest by 
 Fear of Being Found Out— Collectors Are Sometimes Good Detectives— 
 Trackere of Funilture— Trick*, of Buyers on the Instalment Plan— Auction 
 Sales— Removing Without Notice— Professional Crooks— Goods Abandoned. 
 
 WRITING OFF BAD DEBTS 
 
 Doubtful Accounts Should Be Carefully Weeded Out— Use of tlie Sus- 
 pended List— Means of Watching Doubtful Accounts. 
 
l:''-^t)FWITIfTmpaHffi;-iJBa.tiMft^ 
 
 ■ the Flr»tr-Re- 
 
 AXDS" 
 
 Guard— Le>'.Keif 
 L'tllltj' of Cross 
 
 Mt^thod of Con- 
 li Items— Terms 
 nent Aceouut— 
 
 iiisuc'tloufi — Rec- 
 \ah Pnyiuents— 
 
 >idiDg the Em- 
 
 Lbllity to Pay— 
 iu a IjOss to the 
 
 iterest Record— 
 of Columns In 
 
 PART I 
 
 THE SELF-PROVING 
 
 ACCOUNTING SYSTEM 
 
 Responsibility- 
 rts on Vouchers. 
 
 -Dating Papers 
 
 Bad Stock— Ad- 
 's. 
 
 GAGES 
 ■matlon— Report- 
 
 Sept Honest by 
 K)d Detectives— 
 it Plan— Auction 
 >ods Abandoned, 
 
 Use of the Sub- 
 
oWkMltiMeii 
 
 riri*iii'iiTl.ari 
 
 «riu* 
 
 INTRODUCTION 
 
 Two leading considerations are to be kept in mind when 
 examining accounting appliances and methods. One is the rela- 
 tionship of each individual element to the system as a whole, and 
 the other the convenience and efficiency of the device in itself for 
 the special purpose for which it is intended. The first of these is 
 determined by the system itself, or the principles upon which the 
 system is based, and the second by the features of the devices and 
 their adaptability to the ends in view. The Self-Proving Ac- 
 counting System, so far as underlying principles are concerned, is 
 based upon an adequate and logical analysis and classification of 
 the accounts, producing as the result an ever-ready balance sheet 
 of the business. So far as the individual elements are concerned 
 each in itself is labor saving as well as efficient, and also what is 
 believed to be better for the purpose for which it is intended than 
 anything else that has ever been offered to the public. 
 
 The Self-Proving Accounting System is a double entry sys- 
 tem and may be characterized as double entry brought down to 
 date and adapted to modern requirements. It is more than dou- 
 ble entry, for in addition to each transaction being represented 
 in two accounts, one showing the debit and the other the credit, 
 each account is twice entered, once as an individual element and 
 once as a part of a group, or one of a number of elements taken 
 collectively. 
 
 The balance sheet which is embodied in the Self-Proving 
 Private Ledger is the sum and essence of the entire system. It 
 
 mmam 
 
 wms 
 
I 
 
 1^ 
 
 »i 
 
 n 
 
 •20 
 
 THE SELF-rilOVING 
 
 may be described as the centre of the system, around which the 
 other elements are arranged. The Self-Provinjj Accovmting Sys- 
 tem, l)y way of ilhistration and explanation, might be declared to 
 consist of one principal book, the Private Ledger and Balance 
 Sheet, which is a ledger complete within itself, and likewise a 
 posting medium so far as cross entries between its several ac- 
 counts are concerned. All the other books are mere auxiliaries to 
 it, for the history which they contain in detail is shown in the 
 Private Ledger in a condensed form. 
 
 The system is self-proving in that it affords a means of veri- 
 fication of each and every part, as well as of all the parts taken 
 collectively. The Private Ledger and Balance Sheet, as we shall 
 see as we go along, is so arranged as to be in balance at all times, 
 and therefore any error in it is instantly detected by a comparison 
 of the debit footings with the credit footings. Each of the other 
 ledgers in the system, which, it should be remarked, may be more 
 or less in number, according to the nature of the business, will 
 not be in balance by itself, but will balance with the corresponding 
 account in the Private Ledger and Balance Sheet. Therefore 
 each may be proved by itself, independent of the others. Each 
 of the line account ledgers, for example the Mercantile Ledger 
 or the Instalment Ledger, as illustrated in this volume, affords 
 within itself a means of proof, page by page and month by month, 
 thus localizing any errors by which the total balance is dis- 
 turbed.. In addition, each of these ledgers may be compared by 
 both debit and credit footings with the debit and credit footings 
 of the posting mediums from which its amounts have been de- 
 rived. 
 
 The fact that the Private Ledger and Balance Sheet is in 
 balance is proof on its face of the correctness of all the auxiliary 
 books. As long as it is in balance errors need not be looked for; 
 but whenever it is apparent, in any direction, that an error exists, 
 
 I I 
 
t'li-irtifir ',;a. 
 
 . .t. iffW r-mm 'i ; -t"' -iW tSitf i ig iilt<B 
 
 (I which the 
 Hinting Sys- 
 : declared to 
 \n(\ Balance 
 d likewise a 
 I several ac- 
 luxiliaries to 
 tiown in the 
 
 cans of veri- 
 parts taken 
 , as we shall 
 at all times, 
 I comparison 
 of the other 
 nay be more 
 )usiness, will 
 )rresponding 
 . Therefore 
 thers. Each 
 ntile Ledger 
 time, affords 
 th by month, 
 lance is dis- 
 compared by 
 edit footings 
 ave been de- 
 
 i Sheet is in 
 the auxiliary 
 e looked for; 
 I error exists, 
 
 AOC(»I'NTINO 8Y8TEM B 
 
 the different suborditiate liooks may be examined, one by one, and 
 proven by proper comparison, one with tlie other, without the 
 labor of going over the eiltire work as a single unit. Hy this plan 
 the bookkeeper's work is sectiorjalized, and thp necessity of an im- 
 mense amount of labor which, in books as usually arranged, is 
 expended in checking back all the entries whenever an error has 
 been shown to exist, is avoided. 
 
 The Self-Proving Accounting System is comprised in books of 
 original entries, some of which serve the double purpose of a ledger 
 account for the class of transactions to which it is devoted and a 
 posting medium for the contra entries to some other books of the 
 system, thus maintaining the double entry principle throughout. 
 
 There is no copying or writing the record of any transaction 
 the second time. Each transaction is recorded with others of its 
 class in the book specially set apart for the purpose, whik opposite 
 entries, either singly or by footings of columns, are carried to the 
 other books, the whole history finally reaching the Private Ledger 
 and Balance Sheet in the most condensed form. The one book in 
 the system that is in balance at all times is the Private Ledger, 
 which summarizes within very small compass the entire business. 
 The other books of the system, while not in balance in themselves, 
 prove by balancing one with the other and by comparison with the 
 balances in the accounts or columns in the Private Ledger. 
 
 Some of the books employed in the Self-Proving Accounting 
 System are special to it, and others are mere adaptations of fea- 
 tures and principles heretofore in use. Some of the books, as be- 
 fore mentioned, are combined records and ledgers, receiving, on 
 the one hand, the original entry of a transaction, and on the other 
 recording it ledger fashion. Each of the books is independent of 
 all the others as an article of use, and each, therefore, is entitled 
 to consideration on its merits, independent of the system as a 
 whole. Thus the Private Ledger is adapted for use with any 
 
}fr~^ 
 
 TUE SELF-rROVING 
 
 n 
 
 adequately kept set of double entry books. The Notes Payable 
 and Notes Receivable Records and Ledgers described in this vol- 
 ume are likewise adapted for use in connection with other sys- 
 tems, and the same is true of the Expense Record and Ledger 
 and of the Investment Record and Ledger. 
 
 The utility of the plan upon which the Self-Proving Account- 
 ing System is based is apparent. Each of the records is so con- 
 structed that any clerk, even though not skilled in the art of book- 
 keeping, can make his entries correctly therein. As many clt-ks 
 may be employed in thus recording the dififerent classes of transac- 
 tions as the size of the business may demand. The work of one or 
 twenty may be utilized. These dififerent clerks, however numer- 
 ous, in no respect interfere with each other. Each record book is 
 essentially independent of all others, and therefore each clerk's 
 work is peculiar to himself. The correctness of each record book 
 can be proved at any time by comparison with the proper account 
 or column in some other book of the system, or in the Private 
 Ledger. The cross-posting from one book to another is of the 
 simplest character and of the smallest possible amount and 
 may be done daily or weekly, as preferred, while the daily summary 
 or Bookkeeper's Report, constituting the entries in the Private 
 Ledger, is a matter most easily arranged by the general book- 
 keeper or clerk in charge. 
 
 The distribution of the general accounts of the business 
 through several books not only facilitates the daily work by divid- 
 ing it between a number of people according to the magnitude of 
 the business, but it also prevents any one person outside of the 
 private office becoming cognizant of the confidential facts of the 
 business. The results of transactions, the actual volume of the 
 business, the profits or losses made, the amount of goods on 
 hand — in fact, every detail of a private character is retained in the 
 private office. These ems could scarcely be obtained from the 
 
 1 
 
 ■'«"(* 
 
otes Payable 
 
 d in this vol- 
 
 :h other sys- 
 
 and Ledger 
 
 ng Account- 
 ds is so con- 
 ; art of book- 
 many clt-ks 
 es of transac- 
 3rk of one or 
 ^ever numer- 
 :cord book is 
 each clerk's 
 record book 
 Dper account 
 the Private 
 her is of the 
 amount and 
 lily summary 
 the Private 
 eneral book- 
 
 ACCOIJiS'TING SYSTEM 
 
 23 
 
 general books even by an expert with ample allowance of time for 
 examination and investigation, because the Private Ledger opens 
 with the balances and inventories, and they do not appear else- 
 where. 
 
 This volume, in addition to a general exposition of the Self- 
 Proving Accounting System, and illustrations of the books and 
 their methods of use, deals more particularly with the Instalment 
 Business, and shows by numerous special illustrations how the 
 Self-Proving Accounting System may be advantageously em- 
 ployed therein. 
 
 the business 
 ork by divid- 
 nagnitude of 
 itside of the 
 I facts of the 
 )lume of the 
 Df goods on 
 tained in the 
 led from the 
 
 ^^'' 
 

 m 
 
 
CLASSIFICATION OF ACCOUNTS ' 
 
 The accounts of every business enterprise at the outset are 
 comprised in two grand divisions. The first of these incktdes the 
 accounts with the proprietor of the business, whether a person, 
 firm or corporation, and embraces all that are necessary to cor- 
 rectly represent the capital or investment and the results or prog- 
 ress of the business. The second includes all those accounts 
 which show the transactions of the business — in other words, the 
 operations or exchanges of value. 
 
 We shall designate the first class the Proprietor's Accounts, 
 whether the business be owned by a single person, by a firm com- 
 posed of several persons or by a corporation. The principles are 
 the same, whatever may. be the details in these particulars. For 
 purposes of this analysis we shall treat the capital or investment in 
 the business the same when owned by one man or a private firm as 
 when owned by a corporation, because in this respect also the 
 underlying principles are the same. While it is possible in cases 
 where the business is owned by a single individual — or, for ex- 
 ample, by a firm of two or three persons — to conduct the books 
 with measurably satisfactory results, without the extreme analysis 
 and subdivisions of accounts that are desirable with a corporation, 
 still the higher form of accounting more correctly represents 
 actual results, and, therefore, we shall treat the individual owner 
 and the corporation upon exactly the same plane. 
 
 The accounts in which the proprietor of a business is specially 
 concerned also divide into two classes, the first of which includes 
 
 m 
 
 1| 
 
 sm^fVaimi'mxi' 
 
.#■ 
 
 -'llf 
 
 
 m THE SELF-PROVIXG 
 
 the Capital Account and the second of which includes all the ac- 
 counts which represent the Results of Transactio is. These latter 
 are, on the one hand, the accounts representing the various ex- 
 penses of doing business, and, on the other hand, they are the 
 Profit and Loss Accounts. Whenever the gains from the trans- 
 actions of the business exceed the expenses of doing business 
 there is, of course, a profit, and whenever the expenses of doing 
 business are greater than the gains from transactions there is, of 
 course, a loss. 
 
 Right here let us make the point that the Capital or Invest- 
 ment in a business is always to be considered as a thing in itself, 
 apart from that which is represented by the private account of 
 the proprietor when a single individual, or the accounts with the 
 different members of the firm when several persons have com- 
 bined their resources. Experience among business men demon- 
 strates that in many cases the two accounts— namely, one repre- 
 senting the investment and the other representing the with- 
 drawals and deposits of the owner during the progress of the busi- 
 ness—are confounded and taken to be one and the same. This is 
 wrong. The first is the investment, as its name should indicate, 
 and the second is something entirely different, and the two should 
 be carefully distinguished from each other. In this case, as in 
 others to be explained as we go along, the necessary accounts to 
 be opened and conducted are determined not alone by the name 
 of the individual which heads the account as a title, but always by 
 the nature of the transactions to be recorded in the accounts. 
 Thus it is expedient to have several accounts with the same per- 
 son whenever that person stands in several different relationships 
 to the business. 
 
 The capital invested in a business, as already explained, is to 
 be treated in the accounts in the same manner, whether supplied 
 by one person or by several persons constituting a firm, or by a 
 
ACCOUNTING SYSTEM 
 
 m 
 
 .11 the ac- 
 ese latter 
 rious ex- 
 \r are the 
 he trans- 
 business 
 of doing 
 ere is, of 
 
 r Invest- 
 in itself, 
 count of 
 with the 
 ive com- 
 1 demon- 
 ic repre- 
 lie with- 
 the busi- 
 This is 
 indicate, 
 
 should 
 se, as in 
 ounts to 
 he name 
 
 1 ways by 
 ccounts. 
 ime per- 
 ionships 
 
 ed, is to 
 supplied 
 or bv a 
 
 
 X 
 
 
 C f 
 
 
 i- 
 
 in 
 
 z 
 
 o 
 
 3 
 
 
 
 H 
 
 u 
 
 w 
 
 u 
 
 < 
 
 •< J 
 
 Z 
 
 Id 
 U 
 
 
 § 
 
 Ed 
 
 tn 
 (d 
 
 H 
 
 
 b. 
 
 
 tn 
 
 H 
 2 
 
 D 
 O 
 
 u 
 
 I 
 
 tn 
 
 H 
 
 P 
 O 
 u 
 
 < 
 >• 
 
 n 
 
 
 in 
 
 
 S 
 
 
 C o 
 
 
 
 M 
 
 H 
 
 f- 
 
 U 
 
 lr, 
 
 •«; 
 
 S 
 
 o 
 u 
 
 < 
 
 2 
 < 
 
 H 
 
 U) 
 
 O 
 
 si 
 
 O ' 
 H 
 id 
 
 in 
 
 H 
 .J 
 
 D 
 
 M 
 
 tn 
 
 a. 
 
 Id 
 
 O 
 
 OS 
 
 
 
 Id 
 
 
 I 
 
 ^ 
 
 t-i 
 
 < 
 
 
 k. t-i 
 
 
 
 
 0. 
 
 
 < 
 
 
 u 
 
 fCash 
 Notes Receivable ( Instalment or Lease Accounts 
 
 Accounts with Debtors ■< 
 
 [Sundry Debtors 
 
 (Manufacturing 
 Buying 
 Selling 
 
 r Real Estate 
 Investments -^ Stocks and Bonds 
 
 [ Property of any kind 
 
 Notes Payable 
 
 (Purchase Accounts 
 Sundry Creditors 
 . Reserves for Depreciation, Contingencies, etc. 
 
 Expenses oC 
 
 Doing 
 
 Business 
 
 Losses and 
 Gains 
 
 ' Withdrawals 
 
 m 
 
 v 
 
 in 
 in 
 
 O 
 
 •V 
 
 c 
 
 in 
 
 0* 
 
 (S 
 in 
 
 O 
 
 a. 
 
 Dr.^ Dividends 
 > and 
 ' Net Gains = Cr. J Divisions 
 
 Net Loss = 
 
 r < 
 
 Dr."! Impairment 
 
 V and 
 Cr. J Surplus 
 
 ^ Additions 
 
 An Analysis of the Accounts of a Merchandising Business, Forminq the Basis 
 OF a Perpetual Balance Sheet. 
 
 ',"i@S8^BS»gSr 
 
-.,r 
 
 ?;Sf 
 
 11 
 
 
 |! 
 
 ^ i 
 
 i 
 
 
 i 
 
 28 
 
 THE SELF-PROVING 
 
 considerable number of persons composing a stock company; and 
 then, in turn, separate accounts are to be opened with the indi- 
 viduals, whether partners, stockholders or officers of the corpora- 
 tion, according to the transactions with them, whatever their 
 capacities. These personal accounts are to be located in the 
 books of the business in the classes to which they belong, accord- 
 ing to the nature of the transactions which they record. Thus, if 
 the individual buys goods, the account recording the purchase 
 goes into the class of Sundry Debtors. If he lends the concern 
 money the account of that transaction is located where by its 
 character it belongs — namely, among Sundry 'Creditors. In an- 
 other chapter there is discussed at considerable length Capital 
 Account and Proprietor's Account, and therefore we need give no 
 further attention to this matter at present, but with this much by 
 way of preliminary may proceed with a description of the general 
 features of the plan of classification. 
 
 To briefly recapitulate what we have already presented: — 
 We find that the accounts of every business are of two general 
 classes. On the one hand, as shown in the accompanying dia- 
 gram, there is the account of the proprietor, whether person, firm 
 or corporation, owning the enterprise and conducting the trans- 
 actions, and to whom the business is accountable. On the other 
 hand, there are the accounts of the commercial acts or operations 
 of the business, or the exchanges of values — in other words, the 
 accounts of the transactions of the business. It is essential to 
 the proper arrangement of the accounts in the form of a balance 
 sheet, which, as a fact, is one of the principal objects to be kept in 
 view in all bookkeeping, that these two elements be carefully dis- 
 tinguished and kept apart. 
 
 Considering now the proprietor, we find, as shown in the dia- 
 gram, that so far as the records of the business are concerned there 
 is first required an account to be opened with Capital or Iiivest- 
 
 II I 
 
^Wunfit- 
 
 ACCOUNTING SYSTEM 
 
 29 
 
 mpany; and 
 th the indi- 
 he corpora- 
 itever their 
 ated in the 
 )ng, accord- 
 d. Thus, if 
 lie purchase 
 the concern 
 fhert by its 
 Drs. In an- 
 gth Capital 
 leed give no 
 his much by 
 the general 
 
 )resehted: — 
 two general 
 )anying dia- 
 person, firm 
 g the trans- 
 )n the other 
 r operations 
 r words, the 
 essential to 
 of a balance 
 ;o be kept in 
 :arefully dis- 
 
 n in the dia- 
 cerned there 
 al or Invest- 
 
 ment. This account shows the amount which the owner puts into 
 the business as a capital, and for which he holds the business re- 
 sponsible for safe return with proper gains. The capital may con- 
 sist of money, property, or both, as the case may be, but its aggre- 
 gate is represented by the credit to this account. At the outset, 
 before any transactions have occurred, the elements composing 
 the capital are very easily determined and specified, but after the 
 business has been in operation for a time various changes in the 
 disposition of the capital occur, and, therefore, that is called capi- 
 tal when a balance sheet is made out, which represents the differ- 
 ence between the resources of the business and its liabiHties. 
 
 The capital of a business may be increased by additional in- 
 
 Dr. 
 
 Capital Accouwt Cr. 
 
 AmouDte withdrawn 
 
 Original Investment 
 AdditioDal Inveiitmente 
 
 
 1 Cr. Balance-Net Capital 
 
 vestments in the form of new contributions, or the gains may be 
 allowed to remain in the business, thus swelling the capital 
 account. The capital may be diminished by withdrawals or by 
 losses made in the business. In the conduct of the Capital Ac- 
 count no entries should be made to it except those which repre- 
 sent a real and permanent change. If additional money is put into 
 the business to remain permanently, then, of course, Capital Ac- 
 count is to be credited therewith, but if the additional money is 
 only a temporary accommodation, to be withdrawn when the sea- 
 son of its use has passed, it should be considered as a loan and so 
 treated in the books, the record in that case being, of course, en- 
 tirely outside of the Capital Account. Actual withdrawals of 
 
•if"* 
 
 
 I ; 
 
 '.i: 
 
 30 
 
 THE SELF-rUOVIXG 
 
 capital should be charged to Capital Account, but the small 
 amounts drawn by the proprietor or partners for living expenses 
 should not be considered withdrawals of capital. Instead they 
 should be treated as transactions with the individuals and should 
 be charged to accounts, the offsetting credits to which come out 
 of the profits. 
 
 An increase of Capital Account by reason of net gains follows 
 upon the fact of profits being made which are allowed to remain 
 in the business, but no such entry as a credit to Capital of net gain 
 should be made unless it is intenJed that the amount shall actually 
 remain in the business. If the gains are to be withdrawn by part- 
 ners or are to be paid as dividends to stockholders, then Capital 
 Account should not be disturbed by them. 
 
 Capital Account, as already stated, may be diminished by 
 losses made in the business. If these losses are considerable and 
 are permanent in character — that is, without compensations in the 
 way of future advantages — then Capital should he diminished by 
 debiting the amount. In the case of the capital of a stock com- 
 pany, however, more is required than the mere judgment of the 
 bookkeeper to warrant any entry in the Capital Account. The 
 necessary legal steps to a reduction of capital and cancellation of 
 certificates of shares must precede. 
 
 So much by way of explanation of possible entries in the ac- 
 count with Capital. As we proceed with the discussion of the 
 accounts which represent the resitlts of the transactions it will be 
 seen that provision is made in other accounts for taking care of 
 the profits and losses of the business without interfering with the 
 Capital Account, and yet in a way to always represent the real 
 amount of the capital. 
 
 Turning now to the second division of the Proprietor's Ac- 
 counts, as shown in the diagram, it will be seen that the traHS- 
 actions of a business produce results of two general kinds or 
 
 SSIpaMWMiiHHMMi 
 
'aiift'>IOTItf|'i 
 
 ITtfUliLll »i •'ii«'iiri«li»lW>H'<^*l*^l>«»*«*fc*W'i 
 
 ACCOUXTIXO 8Y8TKM 
 
 ai 
 
 classes. As a preliminary to the transactions there are the neces- 
 sary expenses of conducting the bu. iness. and following upon the 
 transactions themselves are the gains or losses incident thereto. 
 All those accounts, therefore, which represent the Expenses of 
 Doing Business, such as clerk hire, advertising, rent, light, heat, 
 insurance, interest, telephone, telegraph, stationery, postage, etc., 
 
 I)r, Ant B.vpbnsb Accoi-nt (Indlvldtwl) Ct. 
 
 Experie Piiid 
 ExpviiB)' Incurred 
 
 CorNCtloni 
 
 Dr. Balance— Net amoant of 
 thU Expimae 
 
 belong in the grand division called Results of Transactions. All 
 accounts with Losses and Gains, whether the losses or gains be 
 presented collectively in a single account or distributed in a num- 
 ber of accounts, as is sometimes required for statistical purposes, 
 likewise belong in this division. 
 
 In practical operation, by way of closing the accounts, the 
 aggregate expense of doing business is posted to the debit of the 
 
 Dr. 
 
 BXPBN«E I.BDHER OB ExPENiBS (C;ollfCtlve) 
 
 Cr. 
 
 Total debit Item* of all 
 the Individual Ezpenw) 
 Accounts 
 
 Dr. Balance— Net expen«eg of 
 doing bui)in*M. Cl'o be 
 carried to Loea and Gain 
 Account) 
 
 Total credit items of all 
 the Individual Expense 
 Accounts 
 
 general Loss and Gain Account, and the gross profits resulting 
 from the transactions are posted to the credit of the same account. 
 The result, then, is the net profit or net loss from the business, 
 which brings us to the consideration of those accounts which 
 record the disposal of profits and losses. This class of accounts 
 
 4 :i 
 
 T 
 
THE sELF-rnovixo 
 
 !, i 
 
 may be described as occupying a position, in a sense, midway be- 
 tween tiie result of the transaction and the capital. In the dia- 
 gram they are shown in line with the last two classes described. 
 
 The two accounts that are required for correctly representing 
 the disposal of profits and losses are, first. Dividends and Divis- 
 ions, and. second. Impairment and Surplus. The net profits, 
 
 Dr. 
 
 Losd Ann Oaik 
 
 Cr. 
 
 Lnwca from had (U-bU 
 All other I.onfi 
 Expeiiui of doing bavloeM 
 
 rroflU on Sales 
 Income from Property 
 All other Oalna 
 All Revenues 
 
 Dr. Balance— Net Loss. (To 
 be carried to Impairment 
 and Sarplns) 
 
 Cr. Balance— Net Gain. (To be 
 carried to Dividends and 
 Divisions) 
 
 where net profits have been made, are brought by cross entry from 
 the Loss and Gain Account to the credit of Dividends and Divis- 
 ions. Then, if all or a certain portion of the gains are to be car- 
 ried to the credits of partners' or stockholders' accounts for with- 
 drawal, or to offset withdrawals already made, this account is 
 debited with such transfers. The balance remaining, if any, stands 
 
 Dr. Lobs and Gain Ledobb (Collective) Cr. 
 
 Total of the debits of the various 
 sub-divisions of Loss and 
 Gain Account 
 
 Dr. Balance— Net Loss. (To 
 be carried to Impairment 
 and Hurplus) 
 
 Total of the credits of the varloai 
 sub-divisions of Loss and 
 Gain Account 
 
 Cr. Balance-Net Gain. (To 
 he carried to Dividends and 
 Divisions) 
 
 for profits not withdrawn and represents what, according to diflfer- 
 ent authorities, is called Surplus or Reserve. This balance, when- 
 ever its amount has been determined, is transferred to the credit of 
 the account called Impairment and Surplus. 
 
 In case the results of the business for a given period as shown 
 by Loss and Gain Account have been a loss, then the Loss and 
 
ass. 
 
 lidway be- 
 n the dia- 
 scribed. 
 presenting 
 ind Divis- 
 et profits, 
 
 Cr. 
 
 ■ on Salut 
 le from Psopettj 
 her Malm 
 gvenuea 
 
 ACCOUXTIXG SYSTEM ■ 
 
 Gain Account is to be closed by debiting- Impairment and Surplus 
 Account with the amount of that loss. From this it will be seen 
 that Impairment and Surplus Account stands with relation to the 
 Capital Account of the business just as its name indicates. It is 
 debited from time to time with losses and correspondingly cred- 
 ited with the profits which are allowed to remain in the Inisiness 
 
 p^ Divinaum aj"> Divihoki 
 
 AmimiitH csrrlwl to Proprlcturg 
 or I'lirtners' iirlvato nccuuDt 
 or paid out for dlvideudi 
 
 Cr. 
 
 Amiiuiitn brought from Lou* 
 auU UalD 
 
 entry from 
 and Divis- 
 to be car- 
 s for with- 
 account is 
 my, stands 
 
 Or. 
 
 Itsof thevariooa 
 of Lou and 
 t 
 
 g to diflfer- 
 nce, when- 
 le credit of 
 
 d as shown 
 ; Loss and 
 
 Cr. Bnlance— tTnilWMed profltB. 
 
 (To tm carrli'd to Iiiipalr- 
 ment and Hiirplus Account) 
 
 either as an offset to losses already entered up or as a guarantee 
 against future losses. If the losses for a given period exceed the 
 gains that have accumulated during the same period, then there 
 is shown by this account an impairment of capital. On the other 
 hand, if the undivided profits exceed the losses, then the balance 
 in this account shows an increase of capital in the business and 
 
 Dr. 
 
 IlirAIBMKNT AND SURI'LIIS 
 
 Cr. 
 
 IjObr«8 bronght from Lobs and 
 Gain Acvuuut 
 
 Dr. Balance— Net amount of 
 Impairment of Capital 
 
 Undivided proftiB brought 
 from UlvldendB and Dlvl- 
 alona 
 
 Cr. Balance— Net amount of 
 Sarplns or Undivided Proflta 
 
 represents that which, as before stated, is variously termed^Re- 
 serve Fund or Surplus. An entry between Impairment and Sur- 
 plus Account and Capital Account, as already intimated, is to be 
 made only in pursuance of formal action upon the part of the pro- 
 prietor or partners, or by the stockholders, as the case may be. 
 It is never to be made at the discretion of the bookkeeper alone. 
 
 ;it 
 
 raggri'aTr t Ti^tnr^ 
 
ili a iWirimyMijffI 
 
 34 
 
 TiiK sKi.i' rnoviN'o 
 
 Provision is made in the Sclf-Provinij Accounting System, 
 as will be seen as we go along, for frequent determinations of the 
 results of the business. It is recommended that Loss and Gain 
 Account shall be closed as often as once a month. In many lines 
 of business during certain portions of the year a very profitable 
 l)usiness is conducted, while during other portions of the year 
 trade is without any pt ofits, if not conducted at an actual loss. A 
 careful scrutiny, therefore, of the accounts just described, par- 
 ticularly with reference to the credit side of Dividends and Divis- 
 ions, which, as explained, represents net profits, and the debit 
 column of Impairment and Surplus, which, as also explained, rep- 
 resents net loss, will always be extremely instructive to the man- 
 aging man in charge of the business. 
 
 Before leaving the accounts which belong particularly to the 
 proprietor of the business, brief attention should be given to the 
 reasons which underlie this scheme of division and also to certain 
 exceptions which may be taken to the plan proposed. The pro- 
 prietor of a business invests the capital which he puts into that 
 business with the expectation of making a profit. Whatever the 
 business gains is to be his. This proposition, properly considered, 
 carries with it the reverse — namely, that whatever losses the busi- 
 ness sustains he must stand. If he is entitled to the profits, then 
 he must bear the losses. Again, if the proprietor is to have the 
 benefits of the business, whatever they may be, then in turn he 
 must stand the expense of conducting the business. In many ar- 
 rangements of accounts the expenses of doing business are con- 
 sidered, in so many '• ords, losses of the business. We prefer, how- 
 ever, to distinguish :ween the expenses of conducting a business 
 and the losses made i.i the business; hence the presence of two ac- 
 counts where occasionally but one is employed. 
 
 In our enumeration of the expenses of doing business above 
 presented we have included all the usual expenditures of a busi- 
 
■■Jiittmimm'^fmm 
 
 *W* 
 
 System, 
 ms of the 
 nnd Gain 
 lany lines 
 )rofital)le 
 the year 
 
 loss. A 
 bed. ])ar- 
 lul Divis- 
 the debit 
 ined. rep- 
 tile nian- 
 
 ■ly to the 
 en to the 
 :o certain 
 The pro- 
 into that 
 tever the 
 •nsidered. 
 the busi- 
 »fits, then 
 have the 
 1 turn he 
 many ar- 
 are con- 
 ifer, how- 
 1 business 
 )f two ac- 
 
 ess above 
 of a busi- 
 
 Jie€fOrXTl.\(i SYSTKM W 
 
 ncss, with one important omission, and to that we now direct at- 
 tention. A very considerahle item of cost in connection with 
 merchandising: i* that of freight on poods. 'J'his item has been 
 omitted in tluj h^ of expenditures that precedes, because freight 
 on goods represents not an expense of doing business, but instead 
 is a part of the cost of the merchandise that it is the purpose of the 
 business to sell. This matter will be more fully explained when 
 we come to a consideration of the Merchandise Account. 
 
 Let us now consider the accounts of the business itself, or the 
 accounts recording the transactions of the business. Business 
 transactions in general may be classified as commercial and finan- 
 cial. The commercial transactions divide into Buying and Sell- 
 ing and the financial transactions into Credits and Payments. In 
 a merchandising business everything must be bought or other- 
 wise procured as a preliminary to selling. In the buying there is 
 either the matter of paying for the goods or obtaining credit, 
 which means, of course, arranging for deferred payments. In the 
 selling of the goods there is either the matter of receiving the 
 money or property that is given in exchange for the same or ex- 
 tending credit, which means, of course, arranging to take pay- 
 ments at a future time. The payments made for goods that are 
 bought may be in the form of cash or in the form of notes or ac- 
 ceptances (payable), and the payments made by others to the busi- 
 ness may also be in the form of cash or in the shape of notes or 
 acceptances (receivable). 
 
 A business may buy and sell services as well as merchandise 
 or property in general. It may be conducted upon the plan of 
 selling the services or skill of the proprietor exclusively or upon 
 that of buying the services and skill of others and selling the same 
 in the open market; all of which goes to show that our analysis 
 applies to various lines of professional business as well as to those 
 branches in which tangible goods are handled. 
 
 I 
 
 
 '■; 
 
II 
 
 THE SELF-PROVINa 
 
 i il 
 
 { I 
 
 1 11 
 
 Let us next give attention to the things and persons with 
 which the transactions, both commercial and financial, are had, 
 and the accounts that are necessary to correctly represent the 
 same. These, on the one hand, are Resource Accounts, embrac- 
 ing accounts with Property, Money and Debtors, and the written 
 promises of others to pay, called Notes Receivable. On the other 
 hand, they are Liability Accounts, embracing Accounts with Cred- 
 itors, together with the written promises to pay others, called 
 Notes Payable. 
 
 Property, in the sense in which we have used the term above, 
 may be defined as values of any kind, and includes such items as 
 Merchandise, goods or wares of any sort. Real Estate, Bank Stock, 
 Bonds, etc. The definition here offered applies to merchandise, 
 whether goods are bought from others complete or are con- 
 structed or finished by the concern. , 
 
 Money, as the term is used in bookkeeping, consists of coin, 
 currency, bank notes and checks or bank drafts, together with 
 postal orders and express orders. The inclusive term is Cash, by 
 which name the account is known. The Cash Account is usually 
 the most important of all the Resource Accounts. It is that into 
 which all the values represented by the other accounts are from 
 time to time converted and the standard by which all the accounts 
 are measured. 
 
 The debtors of the business are those who have not paid for 
 what they have received, and who, therefore, are in debt to the 
 business. A distinction, so far as bookkeeping is concerned, is 
 made between an open account against a debtor and the amount 
 which he owes on a note or acceptance. A separate account is 
 opened for the amounts owing to the business on notes and ac- 
 ceptances called Notes Receivable Account. It takes care of all 
 the paper that is received by the concern, while the amounts owing 
 by debtors are shown by the accounts bearing their names. A 
 
 ■ -■- ■« <j p wmwww^j ii ii j mi 
 
ACCOUNTING SYSTEM 
 
 37 
 
 irsons with 
 il, are had, 
 )resent the 
 ts, embrac- 
 the written 
 n the other 
 with Cred- 
 iiers, called 
 
 ;erm above, 
 ch items as 
 Bank Stock, 
 lerchandise, 
 )r are con- 
 
 ists of coin, 
 ^ether with 
 
 is Cash, by 
 tit is usually 
 
 is that into 
 Its are from 
 he accounts 
 
 not paid for 
 debt to the 
 oncerned, is 
 the amount 
 e account is 
 otes and ac- 
 ;s care of all 
 ounts owing 
 ■ names. A 
 
 debtor, therefore, may owe in two forms. He may be indebted to 
 the concern for an amount on account and also for another 
 amount represented by a note or an acceptance. 
 
 The creditors of a business are the persons who have not been 
 paid for what they have supplied to the business. They are those 
 who have extended credit to the business, and this credit may be 
 on the basis of notes or acceptances which they have taken or on 
 open account. Notes and acceptances issued to others are re- 
 corded in what appears in this analysis as the Notes Payable Ac- 
 count, while the open accounts are treated in a class by them- 
 selves. It is possible, therefore, for the business to be indebted 
 to a single creditor in two forms— f\rst, in an amount represented 
 by an open book account, and, second, in another amount repre- 
 sented by a note or an acceptance. 
 
 While all the accounts with transactions, so far as the nature 
 of the accounts is concerned, divide into Resources and Liabili-' 
 ties, those accounts alone, it should be borne in mind, do not rep- 
 resent the business in its entirety. The actual capital of the busi- 
 ness, vcpresented by the difference between all the resources of the 
 business and all its liabilities to others than the owners, is a lia- 
 bility of the business to the owners, a fact that should not be over- 
 looked, because it is fundamental to a correct balance sheet. 
 
 We next come to a consideration of the Property Accounts 
 of the busine<s. These accounts, broadly stated, are each to be 
 debited at the outset with the amounts on hand or the amounts 
 owing to the concern, as the case may be, at that date, and, as the 
 business proceeds, are to be debited with additions and increases 
 and are to be credited with what is sold or otherwise parted with. 
 At the outset Merchandise Account is to be debited with the 
 amount of goods on hand or with the inventory. It is further to 
 be debited with all the purchases that are made, and is to be cred- 
 ited with the sales as they occur, including both the cost of the 
 
 mm^sm^s<msmms--^x 
 
I 
 
 ; s 
 
 til 
 
 'I 
 
 SM 
 
 IW THE SELF-rKOVIXr, 
 
 goods and the profit that is made thereon, assumhig for the mo- 
 ment that a profit is being made. Then the difference between 
 the debit side and the credit side will show a gain or a loss, as the 
 case may be. 
 
 Merchandise Account, however, considering it in its relation- 
 ship t a trading business, may be advantageously subdivided, be- 
 
 m. 
 
 BuTiNO Account 
 
 Cr. 
 
 (ioodg on hand per Inventory 
 Goods bought (inchidlng 
 freight and cartage) 
 
 Dr. Balance—Inventory 
 
 CorrectioiiB 
 Goods Upturned 
 Goods Ht cost carried to 
 8eillug Account 
 
 cause there are various features about it to be watched which can- 
 not be as well attended to when the account is kept a unit as when 
 it is differently arranged. Two distinct classes of records, or, 
 rather, the records of two different kinds of transactions, are to be 
 made. On the one hand we have the purchases of goods and on 
 the other hand the sales. A complete account is needed for each 
 
 Dr. Sellino Account Cr. 
 
 Goods at Cost 
 
 brought from Buying Account 
 or Any Product Accoant 
 (Manufacturing) 
 
 Goods Keturned 
 
 Corrections 
 
 Dr. Balance— Loss. (To be 
 carried to Loss and Gain 
 Account) 
 
 Goods sold at Selling Prices 
 
 Cr. Balance=-t.aiu. (To be 
 carried to Loss and Gain 
 Accoant) 
 
 of these, because of the cross entries to be made between the two 
 parts at closing, and more particularly by reason of the corrections 
 that are necessary to be made in each from time to time. We 
 need a debit and a credit column in the account of purchases, which 
 we will cal' Buying Account, because there are frequent, correc- 
 tions in invoices and occasionally goods are returned which have to 
 
ACCOUNTING SYSTEM "~ ' 
 
 30 
 
 be charged back. In the same way with respect to sales, which 
 we will call the Selling Account, we need both a debit and a credit 
 column, because customers sometimes return goods and because 
 the business is occasionally obHged to allow discounts or rebates. 
 It is always desirable to know the net amount of goods pur- 
 chased, and this can be shown only by keeping Buying Account 
 separate and distinct from sales. On the other hand, it is always 
 desirable to be able to show the net amount of goods sold, and this 
 is possible only when Selling Account is kept independent of every 
 other feature. 
 
 These considerations alone would justify the division of the 
 Merchandise Account into Buying and Selling, but a still more 
 important reason exists for this measure, and that is the de- 
 termination of results as the business proceeds. To this we shall 
 next give attention. 
 
 In the intelligent management of a merchandising business 
 it is essential to know at all times the cost of goods as well as the 
 selling prices. Indeed it is customary in various directions for 
 costs to be carefully recorded, f\rst in u cost book, which is an ab- 
 stract of invoices, and second upon tags or tickets attached to the 
 goods. With both cost price and selling price thus available, to 
 be extended as the goods are disposed of, there becomes possible 
 certain cross entries between the Buying Account and Selling 
 Account by which the real results of the transactions may be kept 
 constantly in sight. 
 
 Buying Account is debited at the outset with the amount of 
 goods on hand. It is debited from time to time with the goods 
 bought. Now, if from the sum of these two amounts there is sub- 
 tracted the goods sold, taking those goods at cost prices, there 
 remains in Buying Account an amount representing the cost of the 
 goods on hand. Crediting Buying Account with the amount is, 
 of course, the same as subtracting, as above described. 
 
 I 
 I 
 
 I 
 
. ':.*»Wir,'^''-", "Vc''«.^ 
 
 >.! P, 
 
 III 
 
 ill i 
 
 40 
 
 THE SELF-rROVING 
 
 Selling Account from time to time is credited with the goods 
 sold at selling prices. If it is debited in like manner with the cost 
 
 Dr. MANnrACTliBiNO Lkdoeb (Collocllvc) Somttimes called Factory Accouiit Cr. 
 
 Total debit Items of all the 
 Individual accounta of this 
 class 
 
 Dr. Balance— Materials on hand 
 and cost of goods In process 
 of making 
 
 Total credit Items of all the 
 individual accounu of tblt 
 class 
 
 of the goods sold— in other words, with the same amount that has 
 been credited to the Buying Account— the balance in Selling Ac- 
 count will show the gross profit (or loss) made on the transaction. 
 
 Pr. Ant Materiai. Account (Manufacturing) ■ Cr^ 
 
 Amount on hand at beginning 
 
 Purchases 
 
 Freight and Cartage 
 
 Dr. Balance— Amount on hand 
 (including amount not yet 
 distributed) 
 
 Corrections 
 
 Amounts carried to Product 
 Accounts 
 
 Some of the goods which are sold in a merchandising business 
 are sometimes manufactured in a special department of that busi- 
 ness. In fact, a Manufacturing Account, either in the sense of 
 
 j)f Ant Cost Account (Manufacturing) Cn 
 
 Actual Expenditure 
 
 Dr. Balance— Amount not yet 
 distributed 
 
 Corrections 
 
 Amounts carried to Product 
 Accounts 
 
 representing a complete department or as a minor division main- 
 tained simply for convenience, is the rule rather than the excep- 
 
 mm 
 
th the goods 
 vith the cost 
 
 CCOIlIlt 
 
 Cr. 
 
 lit itcmB of all the 
 ual accouata of tbii 
 
 Hint that has 
 11 SelHng Ac- 
 ; transaction. 
 
 Or. 
 
 tione 
 
 itB carried to Product 
 
 ounta 
 
 ising business 
 - of that busi- 
 1 the sense of 
 
 Cr. 
 
 ana 
 
 a carried to Product 
 
 uDta 
 
 division main- 
 lan the excep- 
 
 ACCOUXTING SYSTEM 
 
 m 
 
 tion, and therefore in this classification a word or two is appro- 
 priate with respect to its relationship to the other accounts. So 
 far as concerns our present requirements, the iManufacturing Ac- 
 count may be treated as a unit or as a single account, with the 
 broad statement that whatever applies to the one account would 
 apply as well to the several accounts into which it would be di- 
 
 jjj. Ant Product Account (Manufactiirlns) 
 
 Cr. 
 
 All Itema of cost 
 
 Materlala 
 
 Labor 
 
 General Expense 
 
 Dr. Balance— A mount on hand 
 at coat prlcci>. 
 
 Corrections 
 
 Product at cost carried to 
 liuyinK Account 
 
 vided in case various separate parts were to be maintained for the 
 purpose of statistical records. 
 
 The Manufacturing Account is to be considered as a special 
 division of the Merchandise Account. It is to be debited witli all 
 the costs that enter into the goods produced— namely, materials, 
 labor, power, rent, depreciation of machinery, etc.— and is to be 
 
 jj,_ Oenbbal Expensbb (Manufacturing) 
 
 Cr. 
 
 All Itema of Expense which 
 canuot \>e reiidlly charged 
 to the several product ac- 
 counts, like Superintend- 
 ence, Taxes, Insurance, 
 Power, Repairs, Deprecia- 
 tion of Plant, etc. 
 
 Dr. Balance— Deficiency In 
 charge. (To be carried to 
 Loss and Gain Account) 
 
 Corrections 
 
 Amount charged (by estimate) 
 to Product Accounts 
 
 Cr. Balance— Amount of 
 Excessive Charge. (To 
 be carried to Loss and 
 Gain Account) 
 
 credited from time to time with the goods produced at cost. This 
 result will be accomplished by some such a system in the estab- 
 lishment as would be the equivalent of the Buying Account buying 
 from the Manufacturing Account the goods produced. Buying 
 Account should take over the goods at their cost price, and it 
 should be the account to carry them in stock until such time as 
 
 #■■ 
 
 :S?p-.'!9.T^. 
 
; I 
 
 48 
 
 THE SELF-PROVINO 
 
 they are sold. Then Selling Account should take them out of 
 Buying Account at cost, just the same as though they were goods 
 that had been brought into the concern from some other ma.iu- 
 facturing establishment, and by its records should show the profit 
 or loss at which they are sold. 
 
 The function, then, of Manufacturing Account is to keep 
 track of the cost of goods produced and to turn them over at cost 
 to the Buying Account. It is the function of Buying Account to 
 carry the goods on hand, whether made in the concern or brought 
 in from other establishments, and. in turn, to hand the goods over 
 to Selling Account as they are sold. Finally, it is the function 
 of Selling Account to take the goods at cost from Buying Ac- 
 count and to show the disposition made of them, whether result- 
 ing in a profit or a loss. 
 
 Any balance in Manufacturing Account will represent material 
 on hand, or goods in process of construction, or costs incurred, but 
 not distributed. All this, however, is more fully discussed in an- 
 other place. 
 
 A word right here with respect to the management of Buying 
 Account may serve to more cleariy illustrate the nature and 
 method of conducting that account. It has been stated that the 
 balance in this account, when treated in the manner here de- 
 scribed, will always show the inventory of goods on hand. or. in 
 other words, the goods on hand at cost prices. It is the usual rule 
 with merchants to take an inventory from time to time for the 
 purpose of ascertaining the amount of stock on hand. They de- 
 pend upon this plan for deterr lining the amount of stock, because 
 no such account as the Buyin,- Account here described has been 
 kept. The Buying Account, properly conducted, saves this in- 
 vestigation into stock on hand for all purposes except to verify 
 
 the account. 
 
 It is customary at the end of the day, in balancing the cash 
 
 ■smwBsm-tMJ^s^'^. 
 
sae 
 
 them out of 
 ;y were goods 
 : other nia.iu- 
 low the profit 
 
 tit is to keep 
 n over at cost 
 \g Account. to 
 :rn or brought 
 he goods over 
 5 the function 
 n Buying Ac- 
 ,'hether result- 
 
 esent material 
 s incurred, but 
 iscussed in an- 
 ient of Buying 
 le nature and 
 stated that the 
 uiner liere de- 
 Dn hand, or, in 
 s the usual rule 
 time for the 
 and. They de- 
 stock, because 
 ;ribed has been 
 , saves this in- 
 xcept to verify 
 
 mcing the cash 
 
 ACC0UXTIX(3 SYSTEM 
 
 43 
 
 book, to count the cash in the drawer, not, however, for the pur- 
 pose of discovering how much is on hand in the sense of determin- 
 ing the balance, but for the purpose of proving the correctness of 
 the cash book. The function of the cash book is to record receipts 
 and disbursements and to show by its balance the amount on 
 hand. Counting the cash proves, first, the correctness of the 
 book, and, second, that no pilfering has been done. With the 
 Buying Account, conducted as here described, inventorying from 
 time to time would be undertaken for the purpose of proving the 
 correctness of that account, and lor the further purpose of discov- 
 ering "leaks." It is the custom of business men to rely upon 
 their cash books between times for a statement of the cash on 
 hand available for use, and so it is the habit of merchants who con- 
 duct a Buying Account as here described to rely between times 
 upon the balance which it shows for the amount of goods on hand. 
 
 The Buying Account, conducted as here described, provides 
 an important link in the chain of accounts constituting the balance 
 sheet of the business. The balance in Merchandise Account, as 
 commonly conducted, must necessarily be affected by the profits 
 or the losses growing out of the business conducted, and there- 
 fore it is never a correct representation of the inventory. By the 
 division of Merchandise into Buying and Selling, as here described, 
 profits or losses are shown separate and distinct from the in- 
 ventory, and, in turn, the inventory is shown as it really is, and un- 
 influenced by the results of the transactions which have occurred 
 since an account of stock was taken. 
 
 The advantages following upon this plan of dividing the Mer- 
 chandise Accounts are numerous, and considerable space might 
 be devoted to their presentation. Aside from those to which al- 
 lusion has already been made there is only one to which we will 
 stop to give attention in this connection. By keeping profits and 
 losses apart and distinct from goods on hand, and by keeping such 
 
 ms^imm 
 
^ THE SELF-PROVIXG 
 
 an account with goods on hand as will always show the correct 
 balance, a most excellent foundation is supplied for the claim 
 against an insurance company when a f^re occurs. This advantage 
 alone would warrant the. small trouble of maintaining the account. 
 In various lines of business a number of Merchandise Ac- 
 counts are sometimes required. The merchant may deal in classes 
 of goods so unlike each other as to make it desirable to keep them 
 apart, so far as the records go. He may deal in classes of goods 
 on which the profits are so unlike in the way of percentages to 
 make it desirable for statistical purposes, as well as for other rea- 
 sons, to maintain separate Merchandise Accounts. In all such 
 cases each account, by whatever name called, is divided into a 
 Buying and a Selling Account, to be conducted upon the lines 
 
 above described. 
 
 Again, in department stores it is frequently required that an 
 account be kept with the merchandise in each department. In 
 this case, as in the others, the several resulting Merchandise Ac- 
 counts are to be subdivided into the Buying Account and the Sell- 
 ing Account, thereby showing at all times by the balance in the 
 Buying Account the goods on hand in the department named, and 
 by the balance in Selling Account the gross profits (or losses) 
 which the department is making. 
 
 In passing, we should call attention to the items which con- 
 tribute to the cost of goods, as distinguished from certain other 
 items which belong in the class of expenditures already referred to 
 as the expenses of doing business. Very little thought will be re- 
 quired to show that the expenses of doing business are entirely 
 distinct from the cost of goods, and a little additional reflection 
 will show that whatever aflfects the cost of merchandise in itself 
 should be debited to the Buying Account. Boxing, cartage and 
 freight are certainly chargeable to the Buying Account, 'because 
 they represent a part of the cost of the goods brought to the place 
 
 '■^SsSssssasfts 
 
the correct 
 )r the claim 
 is advantaf^e 
 the account. 
 ;hanclise Ac- 
 eal in classes 
 o keep them 
 ;ses of goods 
 rcentages to 
 or other rea- 
 
 In all such 
 ivided into a 
 3on the lines 
 
 uired that an 
 artment. In 
 chandise Ac- 
 and the Sell- 
 •alance in the 
 \t named, and 
 ts (or losses) 
 
 ns which con- 
 certain other 
 dy referred to 
 ght will be re- 
 is are entirely 
 )nal reflection 
 indise in itself 
 y, cartage and 
 :ount, 'because 
 hi to the place 
 
 • ACCOUXTIXO SYSTEM ' " • 
 
 of sale. On the other hand, all expenses which have to do with 
 the sale of the goods, and which we have previously enumerated 
 in part, belong in the other class— namely. Expenses of Doing 
 Business. 
 
 With the Selling Account kept in the manner above de- 
 scribed, being debited from time to time with the goods sold at 
 cost prices and being credited at the same time with the goods 
 disposed of at selling prices, it should be closed at proper intervals 
 with the balance that has resulted from the transactions, whether 
 a debit or credit, carried to Loss and Gain Account. At the same 
 time the Expenses of Doing Business, representing in this regard 
 the costs for the corresponding period, should Ukewise be closed 
 into Loss and Gain. 
 
 Good business practice warrants the closing of the Selling 
 Account and the Expense AccounL In this manner as frequently 
 as once a month. Many lines of business would do well if the clos- 
 ing entries were made as often as once a week. In the arrange- 
 ment of accounts in the Self-Proving System the entries necessary 
 to the closing may be made just as frequently as desired and at 
 regular or irregular intervals. 
 
 When the Expense Accounts and the Selling Accounts have 
 been closed into Loss and Gain, as above described, then Loss and 
 Gain Account should be similarly closed, carrying its balance, if 
 the balance represents a profit, to the credit of Dividends and 
 Divisions, as already described, and if the balance represents a loss, 
 to the debit of Impairment and Surplus, as also previously de- 
 scribed. 
 
 There are other Property Accounts besides Merchandise Ac- 
 counts to consider, but they are in themselves so much simpler 
 than Merchandise Account that they will not need nearly the time 
 that has been devoted to Merchandise Account. Let us next give 
 attention to such a Property Account as that of a piece of Real 
 
 aw u w ui w i .> i' j( i !Jj t ,*l >wiw <"w ii 
 
 .J 
 
4<( 
 
 TIIK HELF-rHf)VIX(» 
 
 II 
 
 Estate, an item which usually on the books of a business is re- 
 garded as an investment. Even though the Real Estate be car- 
 ried for some other reason than investment, and because of tb.e 
 profit that is derived from it, it is still proper to treat it in the ac- 
 count as though it were an investment. If, for example, a piece of 
 real estate is carried at a loss simply because of some advantage 
 gained in another department of the business, it is only right that 
 the books should show the amount of that loss, in order that the 
 deficit in the one case may be properly compared with the surplus 
 
 in the other. 
 
 It will perhaps occur to the reader, in the light of the division 
 that we have made in the Merchandise Account above, that every 
 Property Account has two sides to be considered, or, rather, two 
 
 j)P_ Ant Pkopihtt Accocmv Cr. 
 
 A'ahie at beginning 
 Amount! boaght 
 Improvemeuts 
 
 Dr. Balance-Lon. (To be 
 carried to Loas and Oaln 
 Account) 
 
 Amount diapoaed of 
 
 (In doting, credit tht Aceovnt 
 with Avptrty on hand at 
 valut) 
 
 Cr. Balance-Gain. (To be 
 rarried to Lou and Gain 
 Account) 
 
 classes of records to be maintained. This is, in a sense, true. 
 There is, first, the investment, independent of cost of maintenance 
 and of revenue, and, second, there is the maintenance and the 
 revenue to be considered, independent of the investment. The 
 profits that may grow out of a piece of real estate are twofold in 
 cliaracter— first, increase in value by reason of advancing prices 
 on account of location and environment, and, second, actual gains 
 by the returns in the way of rent being larger than the cost of 
 maintenance, the latter including such items as taxes, repairs, in- 
 surance, expense of caretakers, etc. 
 
 Two accounts, then, are to be opened with each piece of real 
 estate. The first may be called Real Estate Investment Account, 
 
 ii 
 
 .JSJUMMt.^." 
 
iiness is re- 
 tate be car- 
 ause of tl'.e 
 it in the ac- 
 e, a piece of 
 : advantage 
 y right that 
 ier that the 
 the surphis 
 
 the division 
 
 ;, that every 
 
 rather, two 
 
 Cr. 
 Amount diapoaed of 
 
 U Account 
 n hand at 
 
 sense, true, 
 maintenance 
 nee and the 
 tment. The 
 re twofold in 
 incing prices 
 
 actual gains 
 1 the cost of 
 s, repairs, in- 
 
 piece of real 
 ent Account, 
 
 accounting; system IT 
 
 and is to be debited with the cost of the property and with all ad- 
 ditions or betterments made thereto. It is to be credited with any 
 portion sold, and on closing the books it is to be credited with the 
 inventory value of the property remaining on hand. The balance, 
 then, will show a profit or a loss, as the case may be, on the invest- 
 ment, independent of the use that has been made of the property 
 and the cost of maintenance. 
 
 Dr. Ukal Estate (Invcatmcnt) Cr. 
 
 Value at Ix-ginniiig 
 Addliinni and I'urcbaiei 
 Bettvrmenta 
 
 Amount dlipoovd or 
 
 Dr. Balance— LoTO, (To lie 
 carrii'd to Lomi and Uain 
 Account) 
 
 (In doling, ertdlt th* Account 
 with Real E»tat€ on hand 
 at valut) 
 
 ■Cr. Balance— Gain. (To )« 
 carried to Lota and Gain 
 
 Account) 
 
 The second account with a piece of real estate may be called 
 Real Estate Results Account, and is to be debited from time .to 
 time with all the costs of maintaining the property, such as taxes, 
 oversight, insurance, repairs, etc., and is to be credited with the 
 income from the property. The balance will be either a profit or 
 a loss, according to the circumstances, and will be the results of 
 
 Dr. Rkai. Edtatb (Reinlts) Cr. 
 
 Bepairs 
 
 Caretakers 
 
 Inaurance 
 
 Taxes 
 
 All other Expenses 
 
 Dr. Balance— Loss. (To be 
 carried to Loh and Gain 
 Account) 
 
 Income 
 
 Cr. Balance— Gain. (To be 
 carried to Loss and Gain 
 Account) 
 
 the use of the property, independent of the amount of the invest- 
 ment. By taking the two accounts together. Real Estate Invest- 
 ment Account and Real Estate Results Account, the owner has 
 the opportunity of determining the real advantage of the invest- 
 ment to him. He needs the two accounts rather than a single ac- 
 
48 
 
 TIIB REI.FPROVINO 
 
 count in order to discover where he is making or where he is 
 losing, as the case may be. 
 
 The same general conditions prevail in the matter of stocks 
 and bonds. One account should be opened with each lot of stocks 
 or bonds, as the case may be, as an investment, and another ac- 
 count should be opened with the same as the results. In stocks 
 
 Pr. 
 
 BONIIB (lllVCHfmiTltl 
 
 CT, 
 
 Amnimt on hand at beginning 
 
 at valiK! 
 Co*t of liondi bought 
 
 Dr. B»lancc-Loii. (To he 
 rnrrlcd to Low and Gain 
 Account) 
 
 Amount diapoaud of 
 
 (/» elMing. cn-UU Ih* Acivunt 
 with Jiondi on ^anii at 
 valut) 
 
 Cr. Batancc-flaln. (To bo 
 carried to Loii and Uain 
 Account) 
 
 and bonds there is less cost of maintenance than in the matter of 
 real estate, but at the same time the principle is the same. It is 
 expedient to know the net income from the bonds or stocks, as the 
 case may be, independent of the values that may be placed upon 
 them. Taxes and assessments are also to be recorded. Stocks 
 and bonds are constantly fluctuating in price. They arc to be 
 
 Dr Bonds (ResulU) ^^ 
 
 Cr. 
 
 Expense* of Pnrcha«e 
 All other Expenses 
 
 Income 
 
 Dr. Balance-Loss. (To ho 
 carried to Loss and Gain 
 Account) 
 
 Cr. Balance-Gain. (To be 
 carried to Lous and Gain 
 Account) 
 
 watched, therefore, not only with regard to their income, but also 
 with respect to increasing or diminishing market values. The 
 same general principle Hkewise appHes to other Property Ac- 
 counts, but it is not necessary to particularize further in this con- 
 nection. ' . 
 
 The losses or gains resulting from investments in real estate 
 
 im 
 
where he is 
 
 ter of stocks 
 I lot of stocks 
 I another ac- 
 s. In stocks 
 
 Cr. 
 Amount diapotud of 
 
 Ih* Aei-ount 
 m %imit at 
 
 bc 
 Uln 
 
 the matter of 
 e same. It is 
 stocks, as the 
 e placed upon 
 )rdecl. Stocks 
 hey arc to be 
 
 Cr. 
 Income 
 
 o be 
 Oatn 
 
 come, but also 
 
 t values. The 
 
 Property Ac- 
 
 ler in this con- 
 
 s in real estate 
 
 ACCOrXTINO SYHTIJM H 
 
 and stocks or bonds, as above (lcscril)cd, and fron' he income from 
 the same, may be transferred to one f^encral Loss and Gain Ac- 
 count in the books and there minnle with the profits an<l losses 
 of the business, nr the transfers may be made directly to the ac- 
 counts grouped under the head. Disposal of I'rotits and Losses. 
 The latter course will be preferred in some cases, because thereby 
 
 r*''- StOHK PlXTUIlKK, ITC. (T. 
 
 Value at lieglniilng 
 AUdltluni 
 
 Dr. Biilnnce-Not Coit of Fix- 
 Uirv. (Refer tii Klxturet 
 Dviiruclatiou Account) 
 
 the results of what, from a business point of view, may be called 
 outside investments will be kept separate and distinct from the re- 
 sults of the business. In following this plan the profits made* on 
 real estate investments, stock investments, bond investments, etc., 
 would be carried to the credit of the account entitled Dividends 
 and Divisions. The losses which are made would be carried in the 
 
 Dr. Manttfactubino Plant (Tools, Machinery, FIxtiircg, etc.) Cr. 
 
 CoHt at beginning 
 Amount buunbt 
 
 Dr. Balance— Net Cost of Plant 
 I Bef «r to Plant Depreciation 
 Account) 
 
 Amount Sold 
 
 same manner to the debit of the account entitled Impairment and 
 Surplus. In the same way the profits appearing^ in such accounts 
 as Real Estate Results Account, in Stocks Results Account and 
 Bonds Results Account would go to the credit of Dividends and 
 Divisions, and the losses in the same accounts would go to the 
 debit of Impairment and Surplus. 
 
 J 
 
nHtm 
 
 50 
 
 THE SELF-PUOVING 
 
 H' 
 
 Still another plan is possible for meeting these conditions, and 
 it is presented for the consideration of those bookkeepers who 
 have numerous Investment Accounts to manage. A special In- 
 vestment Loss and Gain Account may be opened, distinguishing 
 the usual Loss and Gain Account by some such term for the latter 
 as Merchandise Loss and Gain. Let the Investment Loss and 
 Gain Account be debited with the losses made or appearing in the 
 Investment Accounts, and in the Results yYccounts as well, and 
 credited with the gains. In turn, as often as may be desired let 
 the balance in Investment Loss and Gain Account be transferred 
 to Dividends and Divisions or Impairment and Surplus, as the 
 case may be, just as has been previously described in connection 
 with the usual Loss and Gain Account of the business. 
 
 Complete classification of accounts would require that Real 
 Estate Investment Accounts and ^'onds and Stocks Investment 
 Accounts should be located in that portion of the ledger devoted 
 to accounts with Resources, while the corresponding Results Ac- 
 counts should go into that part of the ledger devoted to the Pro- 
 prietor's Accounts, falling in the subdivision termed Results of 
 Transactions. If the business conducted were one entirely with 
 stocks and bonds and real estate, the classification of accounts 
 here shown for the conduct of the general business and the ac- 
 counts named herein would, of course, apply. The cost of main- 
 taining a piece of property, for example, would be recorded in 
 some account in the class called Expenses of Doing Business, while 
 the revenue from the property would very naturally come under 
 the head of Losses and Gains. In a mixed business, such as we 
 assume most merchants are conducting, the principal line being 
 the buying and selling of merchandise, with only an occasional 
 outside investment, as, for example, in a store property, it is 
 thought wise to keep the Investment Results Accounts apart from 
 the Business Results Accounts. Even in this case the Invest- 
 
ACCOFNTIXG SYSTEM 
 
 51 
 
 onditions, and 
 kkeepers who 
 A special In- 
 distinguishing 
 n for the latter 
 tient Loss and 
 ppearing in the 
 its as well, and 
 f be desired let 
 t be transferred 
 Surplus, as the 
 d in connection 
 ness. 
 
 iquire that Real 
 >cks Investment 
 ; ledger devoted 
 ling Results Ac- 
 oted to the Pro- 
 rmed Results of 
 )ne entirely with 
 tion of accounts 
 iness and the ac- 
 rhe cost of main- 
 d be recorded in 
 12- Business, while 
 irally come under 
 siness, such as we 
 -incipal Une being 
 »nly an occasional 
 ire property, it is 
 :counts apart from 
 s case the Invest- 
 
 ment Results Account, by strict application of the rule, would be 
 located in the ledger in the same general position as the Business 
 Results Accounts. We have not so shown these accounts, how- 
 ever, in the diagram of classification herewith presented, because 
 with the rare occurrence of outside investments in connection w'ith 
 a merchandising business the trouble of such classification would 
 be much greater than the result obtained would justify. We con- 
 tent ourselves, therefore, with merely calling attention to the 
 principle involved and explaining the method that might be fol- 
 lowed, leaving the bookkeeper to proceed in this regard as to him 
 seems best in view of circumstances. 
 
 We will next give attention to Notes Receivable, one of the 
 
 Dr. N0TB8 Recbiva'^lk Cr. 
 
 Notes and Acceptances on hand 
 
 at beginning 
 Notes and Acceptances Beceived 
 
 Dr. Balance— Amoant on hand 
 
 Notee and Acceptances 
 disposed of 
 
 Property or Resource Accounts shown in the diagram. This ac- 
 count is opened by debiting it with the amount on hand at the 
 beginning, and i i turn debiting it with notes and acceptances as 
 they are received. From time to time it is credited with the notes 
 disposed of, either in the sense of being paid out or sold to others 
 or being redeemed by the drawers. A debit balance is the only 
 balance possible in Notes Receivable Account, and represents the 
 amount of notes on hand. It is verified from time to time by com- 
 paring with the notes in hand. 
 
 Another Resource Account, and a most important one, to 
 which attention should be given in this connection, is that of Cash. 
 It is opened by debiting it at the outset with the amount of cash 
 on hand. It is maintained by debiting from time to time with cash 
 
:nninii»«i 
 
 Uj THE SELF-rROVIXG 
 
 received and crediting it with the expenditures. A balance in this 
 account will be on the debit side and will represent the amount of 
 cash on hand. The objects in view in keeping a Cash Account are 
 to know the amount of cash received and paid and also the amount 
 o^ cash on hand at any given date. The account is verified by 
 counting the cash and comparing the amount found to be on hand 
 with the amount called for by the account. 
 
 I,,. CASH cr. 
 
 Amount on hund at beginning 
 Receipts 
 
 There are var7ous subdivisions of the Cash Account possible, 
 prominent among which may be mentioned the* Bank Account. 
 As a fact, the Bank Account is kept separate from the Cash Ac- 
 count, although, as commonly regarded, it is a portion of the Cash 
 Account. The bank balance is very generally carried on the stubs 
 of the check book. It is very commonly the rule to make the 
 
 Bank ' *^ 
 
 Jr. -' 
 
 Amount on deposit 
 
 at l)eginnlng 
 Deposits , ^ ^ ,. 
 
 Proceeds of notes gold to it, or 
 
 dlsconnted 
 
 Amount withdrawn 
 Collection charge* 
 
 Dr. Balance— Amount on deposit 
 
 Cash Account the inclusive account, with the result that a part 
 of the cash indicated by the account as being on hand is in bank, 
 while another part is in the drawer or safe. Many business men 
 and bookkeepers prefer to conduct the Cash Account in the re- 
 strictive sense of the term, limiting it to the cash actually in hand, 
 
ance in this 
 '. amount of 
 \.ccount are 
 the amount 
 verified by 
 I be on hand 
 
 Cr. 
 
 Expenditures 
 
 unt possible, 
 nk Account, 
 he Cash Ac- 
 1 of the Cash 
 on the stubs 
 to make the 
 
 Cr. 
 
 Amount withdrawn 
 Collection ctiargee 
 
 It that a part 
 nd is in bank, 
 business men 
 unt in the re- 
 tually in hand, 
 
 ACCOUXTIXG SYSTEM M 
 
 either in drawer or safe, as the case may be, and in turn maintain 
 a separate account with the bank. For the purposes of classifi- 
 cation, so far as we are considering them in this connection, it is 
 immaterial which of these two points of view be occupied. \Miat- 
 ever may be the theory, the business man, as a fact, requires of his 
 bookkeeper from day to day a report of the amount of cash actually 
 on hand and also of the amount that is in bank subject to draft. 
 Therefore it is expedient to conduct this account in such a way as 
 always to keep the two balances separate and distinct, the same as 
 though two separate accounts were maintained. 
 
 Among the Resource Accounts of a business the Personal Ac- 
 counts or Accounts with the Debtors of the business occupy a 
 
 Dr. 
 
 Ant DEnTOH 
 
 Cr. 
 
 Amount owing at l)eginning 
 Amounts for whicli be becomes 
 liable 
 
 Dr. Balance— Amonnt owing 
 
 Cash Payments 
 
 Notes 
 
 Goods or Property 
 
 Corrections 
 
 very prominent place. At the outset each Personal Account 
 (with debtor) is debited with the amount owing to the concern. 
 In turn, iuring the period through which the account is open, it is 
 debited with the amounts for which the debtor becomes liable. 
 On the other hand, it is credited from time to time with the cash 
 payments made, with merchandise returned, with corrections of 
 errors, if any have occurred, with notes, in case notes are given or 
 turned over, and with the goods that the business receives from 
 the debtor, or with property of any kind which is set over by the 
 debtor as a credit to his account and which is accepted therefor. 
 The balance, if on the debit side, represents the amount which 
 the debtor is owing. If by any accident the balance appears 
 
54 THE SEI.F-PROVIXG 
 
 upon the credit side of the account it shows the amount that the 
 account has been overpaid. 
 
 The Personal Accounts with debtors in the particular hue of 
 business which we are considering divide into two classes-In- 
 stalment or Lease Accounts and Sundry Debtors Accounts. 
 Very few merchants conduct their business on such narrow hues 
 
 jj^ PBOPRIBTOR or Pi.BWK R'g Dbawiwo Accoumt Ct- 
 
 Amonots drawn In Cwh, 
 OoodB or other Property 
 
 Salary 
 
 Allowance or 
 
 Share of „. ,^ . . 
 Proflti from Dividends and 
 Dlvlalona 
 
 I! I 
 
 Dr. Balance-Over-draft 
 
 Cr. Balance— Amount owing 
 to him 
 
 ^nrS^niuS accounts with debtors of one particular kmd. 
 An Instalment Account, as will appear as we go along, requires 
 special rulings in the ledger for its convenient conduct, and there- 
 fore the Instalment Accounts of the business are kept separate 
 from the other debtor accounts for this reason, as well, also, as for 
 the further reasons of classification. Open accounts with debtors, 
 
 ^ AST Crbditor 
 
 Amounts paid bim in 
 Cash 
 
 Notes Payable 
 Note* Receivable 
 Goods or Property 
 
 Amonnts owing to him 
 
 at beginning 
 Becelved from him In 
 
 Cash 
 
 Notes 
 
 Goods or Property 
 
 Cr. Balance— Amonnt owing to him 
 
 by which term is meant those accounts representing sales made on 
 ordinary terms of credit, are kept by themselves in books specially 
 ruled to accommodate such transactions and also because for rea- 
 sons of mere classification it is expedient to keep accounts of this 
 kind by themselves. , 
 
 The Liability Accounts of a business, as shown by the dia- 
 
ACCOUNTING SYSTEM 
 
 QB 
 
 lit that the 
 
 ;ular Une of 
 
 ;lasses — In- 
 
 Accounts. 
 
 larrow lines 
 
 Cr. 
 
 Be or 
 
 ■om Dividends and 
 tns 
 
 ticular kind, 
 ng, requires 
 t, and there- 
 ept separate 
 1, also, as for 
 vith debtors, 
 
 Cr. 
 
 lonnta owing to him 
 at beginning 
 ceived from blm In 
 
 Cash 
 
 Notes 
 
 Ooode or Property 
 
 prtohlm 
 
 sales made on 
 3oks specially 
 cause for rea- 
 counts of this 
 
 n by the dia- 
 
 gram, divide into two general classes — Notes Payable and Per- 
 sonal Accounts (creditors). Notes Payable, or Bills Payable, as 
 the term is very commonly written, is credited at the opening of 
 
 Dr. 
 
 Notes Patabli 
 
 Cr. 
 
 a 
 
 Notes and Acceptances paid 
 off or redeemed 
 
 Amount ontatanding 
 
 at beginning 
 Notes IssDed 
 Drafts accepted 
 
 Cr. Balance— Amonnt ontstandlng 
 
 the books with the notes outstanding, and from time to time with 
 notes as they are issued and with drafts as they are accepted. In 
 turn it is debited with notes paid off or redeemed. The balance. 
 
 Dr. 
 
 Ant STOCKnoLOER Cr. 
 
 Amounts paid him in Cash, 
 Goods or other Property 
 
 
 Dividend carried from Divi- 
 dends and Divislona 
 
 * 
 
 
 
 Cr. Balance— Dividends 
 remaining unpaid 
 
 which must be on the credit side, represents the amount in notes 
 and acceptances outstanding for which the concern is Hable. 
 
 The Personal Accounts with the creditors of the establish- 
 
 Dr. 
 
 Amt OrricBB, Clerk or Exploteb 
 
 Cr. 
 
 Amounts paid him in Cash, 
 Goods or other Property 
 
 Dr. Balance— Orer^lraft 
 
 Salary, 
 Allowance or 
 Wages 
 
 Cr. Balance— Amount owlne 
 to him 
 
 ment are very frequently divided into sub-classes for the purpose of 
 keeping together those representing one particular kind of trans- 
 
_j THE SEI-F-PROVIXO 
 
 actions. For example, many merchants prefer .o keep those ac- 
 :,nts which represent their purchases apart <- J ;P-™ ' 
 accounts which represent special liabiht.es money ~^' ' _ 
 ,t is therefore customary to assign spec.al ledgers ° '"-*;■ 
 .ions or to assign to the™ special c,iv,s,„ns ,n on ^dger ^ach 
 creditor's account at the beginning is to be cred.ted w.th what the 
 
 PUBCHAB* L«i>o«» (Collective) 
 Dr. — ■ 
 
 Total debit Items of all the 
 Individual •ccounta of in« 
 
 Total credit Itenw of all the 
 Individual accounta of this 
 clasa 
 
 Cr Balance-Amount owing 
 to the clags collectively 
 
 ,uch additional amounts as the business becomes hable to h.m for. 
 r.urn the account is to be debited with the amounts pa,d to htm 
 Ihether in cash, notes or property. The balance ,f on the cr d,. 
 : will show the amount still owing to the cred.tor, and, ,f on 
 the debit side, will show the extent to which the account has been 
 overpaid. 
 
 Dr. 
 
 SUNBUT Cbtoitorb' L«do«b (Collective) 
 
 Cr. 
 
 Total debit itema of all the 
 Individual accounta of this 
 claw 
 
 Total credit items of all the 
 individual accouuta of thla 
 claM 
 
 1 
 
 Or. Balance-Amount ovfing 
 to the class collectively 
 
 =-At the outset.T;^S^he subject of <=l'-^'ft""°': ° 
 accounts, wc brought to the attention of the reader '-= - "V^ 
 of such a classification, stating that the purpose -as to arrange 
 ::! unts in the form of a balance sheet so that mere re^rence 
 thereto at any time would reveal the real condttton of the bus. 
 
ACCOUNTING SYSTEM 
 
 81 
 
 3 those ac- 
 le personal 
 rowed, etc 
 those divi- 
 Iger. Each 
 th what the 
 
 Or. 
 
 t Items of a!l the 
 kl accounu of this 
 
 redited with 
 e to him for. 
 paid to him, 
 on the credit 
 jr, and, if on 
 lunt has been 
 
 Or. 
 
 Bdlt Item* of all the 
 dual accoccta of thia 
 
 »tag 
 
 [assification of 
 the real object 
 7as to arrange 
 mere reference 
 3n of the busi- 
 
 ness. Manifestly such an examination would be attended with 
 great difficulty if the accounts were presented in all their details. 
 Therefore plans are resorted to by which, for balance sheet pur- 
 poses, the totals of classes of accounts are used instead of the ac- 
 counts in detail. How this is done will become clear by some 
 examples. Early in this description we referred to the expenses 
 
 Dr. Sundry Debtorr' Lkdhkr (Collective) Cr. 
 
 Total debit itema of all the 
 individual accounu of this 
 
 Dr. Balance— Amount owing 
 by the clasB collectively 
 
 Total credit items of all the 
 individual accountaof this 
 class 
 
 _of doing business, represented by as many separate accounts as 
 may be desired by the managing man for statistical purposes. 
 We enumerated such accounts as taxes, clerk hire, advertising, 
 rent, stationery, postage, etc. We will assume that an account is 
 opened with each of these items, to the extent of six or twelve or 
 more, according to the nature of the business, and that these sev- 
 
 er. 
 
 INBTALMENT LKDOER 
 
 Cr. 
 
 Total debit Items of all the 
 indivldaal accounts of this 
 
 Dr. Balance—Amount owing 
 by the class collectively 
 
 Total credit items of all the 
 individual accounts of thia 
 class 
 
 eral accounts receive the items belonging to them. This is neces- 
 sary in order to keep expenses classified for purposes of compari- 
 son and direction as to expenditure. What is wanted for the gen- 
 eral balance sheet, however, is the total of these expenses in ine 
 item, and this is secured by having a general account, which is 
 /iebited with all the amounts with which these individual accounts 
 
08 
 
 THE SELr-PROVlXO 
 
 are debited, and credited with all the amounts with which these 
 accounts are credited. The means for accomplishing this result — 
 that is, having- the expenses shown in detail in one place and in 
 gross in another — will be described in another place. 
 
 There are numerous Personal Accounts (debtors) in a busi- 
 ness. We have already referred to the plan of dividing them into 
 two classes. Instalment Accounts and Sundry Debtors, but still 
 more is required for the convenient handling of these items.. 
 For purposes of the balance sheet we need to have in one amount 
 the total of all the Instalment Accounts and in another amount 
 the total of all the Sundry Debtors. By means that will be de- 
 scribed further on these accounts are kept in detail in one place and 
 in single accounts in another. Each of these group accounts, if 
 we may use the term, is debited from time to time as the individual 
 accounts are debited, and is credited from time to time as the in- 
 dividual accounts are credited. Accordingly it receives in gross 
 all that is distributed among the individual accounts for which it 
 stands. Then the balance in each of these accounts at any date 
 will represent the total of the balances of all the accounts in the 
 class which it represents. 
 
 The same general remarks and methods apply to the Personal 
 Accounts (creditors) in the business, which are subdivided first 
 into Purchase Accounts, and, second, into Sundry Creditors. A 
 group account is arranged for each of these classes of accounts 
 which by its balance shows in one amount what would be revealed 
 by a trial balance of all of the individual accounts of the class rep- 
 resented. 
 
 By this process of boiling down and condensation we have for 
 balance sheet purposes all of the accounts of the business reduced 
 to the following very small list: — Cash (in drawer or safe and 
 bank), Merchandise (subdivided into Manufacturing, Buying and 
 Selling), Accounts with Debtors (in three items — Instalment Ac- 
 
 m 
 
hich these 
 is result — 
 ace and in 
 
 A,.-Jh.:-.^ j,^.^yU;JJ,tt-JiIliil^UJXil-J 
 
 ACCOIXTIXG SYSTEM 
 
 50 
 
 in a busi- 
 them into 
 s, but still 
 lese items., 
 ne amount 
 ler amount 
 will be de- 
 le place and 
 iccounts, if 
 e individual 
 e as the in- 
 ^es in gross 
 [or which it 
 at any date 
 junts in the 
 
 :he Personal 
 divided first 
 reditors. A 
 of accounts 
 1 be revealed 
 he class rep- 
 
 1 we have for 
 iness reduced 
 or safe and 
 , Buying and 
 stalment Ac- 
 
 RESOURCES 
 Cash : 
 
 In drawer (Balance on Hand) 
 
 In bank (Balance on Deposit) 
 
 Merchandise : 
 
 Manufacturing Ledger (Inventory of Materials, etc) 
 Buying (Inventory ot Goods on Hand) 
 
 Debtors to the Business : 
 
 Instalment Ledger or Lease Accounts (Amount owing to the business) 
 Sundry Debtors Ledger (Amount owing to the business) 
 Notes Receivable (Notes and Acceptances on hand) 
 
 Investments : , 
 
 Stocks and Bonds (Inventory Value) 
 Real Estate (Inventory Value) 
 Other Property (Inventory Value) 
 
 LIABILITIES 
 
 Creditors of the Business : 
 
 Purchase Accounts Ledger (Amounts owing) 
 
 Sundry Creditors Ledger (Amounts owing) 
 
 Notes Payable (Amount of Notes and Acceptances out) 
 
 Reserve Accounts (Amounts held to make good Depreciations 
 
 and for bad debts, etc.) 
 Proprietor's Account or Capital (net difference between 
 
 Resources and Liabilities of the Business) 
 
 A Typical Balance Sheet at the Opening or Closing of the Books. 
 
iM 
 
 THE SELF-rUOVING 
 
 
 counts. Sundry Debtors' Accounts and Notes Receivable Ac- 
 count), and Investments (composed of Real Estate. Slocks and 
 Bonds). This completes the accounts representing the Resources 
 of the business. Of Liability Accounts we have only Accounts 
 with Creditors (under three heads— Purchase Accounts. Sundry 
 Creditors and Notes Payable). There is left the Results of Trans- 
 actions (comprised in two accounts, known as Expenses of Doing 
 Business and Losses and Gains). Disposal of Profits and Losses (in 
 two accounts— Dividends and Divisions and Impairment and Sur- 
 plus), and Capital Account, which, as before explained, represents 
 the difiference between the Resources of the business and the Lia- 
 bilities of the business. How these accounts are arranged in a 
 form to receive daily entries and yet at all times remain in balance 
 sheet form is fully set forth in the chapter devoted to a considera- 
 tion of the Private Ledger and Perpetual Balance Sheet. 
 
 Before closing this chapter we should call attention to the 
 use made herein of certain terms, which, unexplained, might cause 
 misapprehension. In the balance sheet referred to and illustrated 
 by a diagram, and also in the Private Ledger and Perpetual Bal- 
 ance Sheet, described in another part of this volume, the term In- 
 vestment Accounts is used to designate the accounts with proper- 
 ties and values owned by the business outside of Merchandise, Ma- 
 terials, Notes Receivable, and the other usual resources of the busi- 
 ness. The investment of the proprietors or of the stockholders is, 
 of course, the money put by them into the business. As the busi- 
 ness proceeds, however, it is frequently foundto be desirable or ex- 
 pedient for it to make certain disposals of capital which amount to 
 specific investments in the interest of the business. These invest- 
 ments include such items as the store building, a factory building, 
 the machinery and tools for equipping the factory, and the fixtures 
 in the store itself, each one of which is necessary to the bdsiness. 
 Accounts representing properties of this kind, while being Re- 
 
=~T 
 
 lit 
 
 ivable Ac- 
 Siocks and 
 2 Resources 
 y Accounts 
 Its, Sundry 
 ts of Trans- 
 es of Doing 
 d Losses (in 
 int and Sur- 
 [, represents 
 md the L'a- 
 ranged in a 
 n in balance 
 a considera- 
 et. 
 
 ition to the 
 might cause 
 d illustrated 
 rpetual Bal- 
 the term In- 
 vvith proper- 
 landise, Ma- 
 s of the busi- 
 ckholders is, 
 As the busi- 
 sirable or ex- 
 ;h amount to 
 riiese invest- 
 ory building, 
 i the fixtures 
 the business, 
 le being Re- 
 
 ArcOT'XTIXO SYSTEM 01 
 
 •ource Accounts, are yet to he distinguished from other accounts 
 of the same class, sometimes called (Juick Assets, or wliat are more 
 correctly designated as Available Resources. Again, it some- 
 times Iwippens that in the course of a business, owned by partners, 
 we will say, there is accumulated more money than is re(|uired in 
 the business itself, and which surplus the partners agree to put 
 
 I*""' FixTrnKii DKi-RKciATiim 
 
 Correction! 
 
 Cr. 
 
 Allnwiincn for DvpiTclnllnn 
 (*« (libil in Rufrvt for 
 Jnxturti Oepreemlionj 
 
 Cr. Balance— Amonntprovldetl 
 for Utipruciation 
 
 into (iovernment bonds or into some first class stock upon joint 
 account. Or it may be decided to buy a piece of real estate. Here, 
 in turn, arises the need of such a designation as Investment Ac- 
 counts in order to maintain a complete classification. It is to be 
 admitted that instances of the kind last cited are somewhat rare, 
 and that at best it is inexpedient for partners in a business to go 
 
 Dr 
 
 m 
 
 Rehkrvr for Fixtubks Dkprkciation 
 
 Cr. 
 
 Amount of RstlmattHl Depreciation 
 (Set CrtiM in F.xturii DeprtciutlOn) 
 
 Dr. Balance — Deficiency in 
 ami lint charged to Ex- 
 pense. (To be carried to 
 LubB and Gain Account) 
 
 Amount carried to proper 
 Bxtwiiia Account 
 
 Cr. Balanrc— Excetslve charf;e 
 to Bxpenoe. (To b<? carried 
 to Lo«8 and Gain Accoaot) 
 
 very far outside of the lines of that business with their investments. 
 It is better, as a rule, to take such ventures entirely out of the 
 books of the business. Our purpose, however, in preparing this 
 volume is to show how accounts are to be kept, and not to pre- 
 scribe the business policy nor define the business management of 
 the men who are doing business. 
 
 f-f'l 
 
TIIK HELl' rROVINO 
 
 Another term to which attention should be directetV in this 
 connection is tliat of Ledger. In this voUime the word is used in 
 two (hstinct meanings, which always may be distinguished by the 
 context. In some cases the word is employed in the sense of a 
 separate volume, as, for example, the Instalment Ledger or the 
 Mercantile Ledger, meaning the special volume prepared with 
 
 llebiitcK nnd Allowance* 
 as they occur 
 
 RiKKRVR roil U«HATEI» AND \U.nWAKiK'. 
 
 Cr. 
 
 Pr<)vl»l(>li for prohahli' claltnt 
 {Sft iimptr (ifl>l among 
 Kxpinit AcfOUhli) 
 
 Dr. nalancc" Dcflrlency In pro- 
 vlfliin. (To bo rarrii'd to 
 l.omt anil Uain Accouni) 
 
 Cr. Balance E.TPeB»lvf pro- 
 vUlon. (To l)c nirrled to 
 LoM and (ialn Acconnt) 
 
 rulings appropriate for its purpose. In other cases, the word 
 Ledger is used in the sense of a certain class of accounts taken col- 
 lectively. As thus employed it may refer to a separate volume 
 wherein the class of accounts specified is kept, or to a portion of a 
 volume set aside for the reception of the accounts of the class 
 specified. Thus we have used the term Expense Ledger, meaning 
 
 Dr. Uebeiivb for Bad Dbbts 
 
 Cr. 
 
 Actual LoBica bb they occur 
 
 Dr. Balance - Deflclency In 
 Allowance. (To Im carried 
 to LosB and lialn Account) 
 
 Allowance for probable lo»«e« 
 {Se» proper dfbit among 
 Expenat Aceountt) 
 
 Cr. Balance— EicesBlve Allow- 
 ance. (To bo carried to 
 LoBB and Oaln Account) 
 
 collectively all those accounts into which the general expenses of 
 the establishment are divided; Purchase Ledger, meaning collec- 
 tively all those accounts with persons, f^rms and corporations from 
 whom the business buys goods; Sundry Debtors' Ledger, meaning 
 collectively the accounts with the debtors of the business, with the 
 exception of those of certain reserved classes, as, for example, in 
 
:te(V in this 
 d is used in 
 ihed by the 
 : sense of a 
 Iger or the 
 pared with 
 
 C"r, 
 
 (ir prohiilili' clalmt 
 I/Mr <ltb'l among 
 
 ACfOUIlU) 
 
 A( 'COi; XTI N( } H YN'IK.M 
 
 the Imsiness dcscriheU ia this work, the Instahnent Accounts or 
 Lease Accounts, 
 
 In the fornuilae of accounts which we have presented on tlicse 
 pa^'cs there are inchided, in adcHtion to those whicii are specifically 
 referred to in the text, others which in kind are closely related to 
 some of them and which are necessary to a complete presentation 
 
 Dr 
 
 CorrtTtloin 
 
 I'r.ANT DKPi iEf lATKiw (Mttnufacturliig) 
 
 •mmm 
 
 Cr. 
 
 Allominci' for Df prerliitloii 
 (.s'«« tMIt In Htftrvt for 
 Plant Dtiirtviation) 
 
 s, the word 
 ts taken col- 
 rate volume 
 portion of a 
 of the class 
 jer, meaning 
 
 Or. 
 
 I for probnblo lo»»c» 
 roper dfblt among 
 M Accountf) 
 
 to 
 
 1 expenses of 
 aning collec- 
 Dfations from 
 ger, meaning 
 ness. with the 
 r example, in 
 
 Cr. BiiInii<'e--Amount provlik'd 
 for iJt'preclutiuu 
 
 of the accounts that it may be found necessary to open in conduct- 
 ing a business of the largest and most extensive character. 
 
 The forms of accounts and the diagrams are made so complete 
 in themselves as to be self-explanatory, and, therefore, it is not 
 necessary to refer to them in detail. The form of balance sheet 
 here given, showing the accounts arranged as they would be at the 
 
 "'• REsimyB FOB Plawt DEpngciATioK (Manufacturing) cr. 
 
 Amount of Khtlniatod DcpnTlatlon 
 ( See Crnlit In Plant iMtmciation 
 Account) 
 
 Dr. Balnnre — Deficiency In 
 Amounts charged to Product 
 AccounlK. ('Po he rarried to 
 Lobs and Gain Account) 
 
 Amounta charged to Product 
 Accounts 
 
 C '. Balance'- Excessive charge 
 to Product Accounts. (To 
 be carried to Loss and Gain 
 Account) 
 
 time of opening or closing the books, is in some respects intro- 
 ductory to what is presented further on in this book in the chapter 
 discussing the Private Ledger and Perpetual Balance Sheet. 
 
 What we have for convenience called in the Self-Proving 
 Private Ledger and Balance Sheet and elsewhere in the classifica- 
 tion of accounts in this volume Investments, are the same as de- 
 
 i 
 
 
 i' III 
 
 !■ w 
 
 '^I^J^ . 
 
t ^Mf ^ f ^M^^ ' lff f i tf J flft' 
 
 m w'^ m '*^ — ■ 
 
 M 
 
 THE SELF-PIK ) VINO 
 
 scribed by some authors on bookkeeping, of whom may be men- 
 tioned Thornton and Garcke and Fells, as Fixed Capital. The 
 accounts in question represent property that remains in the pos- 
 session of the business, considering the business now as a thing 
 apart from its owners, and which is used in the business to help 
 make a profit, but which is not bought and sold as merchandise. 
 The contra term to Fixed Capital would be Floating Capital, 
 which would include merchandise, something that is parted with . 
 to make a profit by changing it for some other property. The 
 accounts with Fixed Capital, according to Thornton, for example, 
 include Machinery, Ofifice Furniture, Business Premises, Land, 
 Fixtures, Manufacturing Plant, &c. These accounts are some- 
 times called Property Accounts, but that term includes, as we 
 have shown in the chapter on classification of accounts, such ac- 
 counts as Cash, Merchandise and Debts. We have preferred the 
 general term Investments to indicate these accounts. 
 
 Accounts with Investments or accounts with items of Fixed 
 Capital naturally divide into two classes, one of which includes 
 those things immediately essential to the business, such as Manu- 
 facturing Plant, Store Fixtures, Office Furniture and the like, and 
 the items in which some of the funds of the business are invested, 
 and which, in a sense, constitute the investment of reserve funds. 
 We have called the first of these Necessary Investments, and we 
 have designated the second of these as Speculative Investments, 
 which analysis will serve many purposes. The names, however, 
 may be varied, at the option of the accountant, without detri- 
 ment to the scheme of the Private Ledger and Perpetual Balance 
 Sheet. 
 
 A word should be added with respect to Reserve Accounts 
 for Depreciation of Plant and Fixtures, and for Bad Debts and 
 the like. The depreciation of fixtures, machinery, manufacturing 
 plant and other articles of property is something which should be 
 
nay be men- 
 !apital. The 
 s in the poj- 
 w as a thing 
 iness to help 
 merchandise, 
 ting Capital, 
 i parted with . 
 operty. The 
 for example, 
 mises, Land, 
 its are some- 
 :ludes, as we 
 mts, such ac- 
 preferred the 
 
 ems of Fixed 
 hich includes 
 Lich as Manii- 
 l the like, and 
 
 are invested, 
 reserve funds, 
 lents, and we 
 
 Investments, 
 nes, however, 
 i'ithout detri- 
 etual Balance 
 
 rve Accounts 
 ad Debts and 
 nanufacturing 
 lich should be 
 
 l! 
 
 ACCOUNT! X(; SYSTEM 
 
 m 
 
 considered a part of the cost of doing business, or, in the case of 
 manufacturing, a part of the cost of the goods produced. The 
 depreciation, therefore, is something which should be charged 
 from month to month. While it would be sufficient in the matter 
 of mere solvency and in the proper adjustment of accounts an- 
 nually to have a Reserve Account, the credit balance in which 
 derived from Loss and Gain is equal to the depreciation, or the 
 loss in the way of bad debts, still more is required to keep the 
 books of a going business in proper condition. It is necessary for 
 reasons that have been explained to have the costs of doing busi- 
 ness properly charged month by month, and in case of manufac- 
 turing to be spread over the product as the goods are produced. 
 While these charges thus occur monthly, yet the depreciation of 
 the property is a matter that ordinarily is estimated only once a 
 year. Provision for the depreciation, therefore, must be made 
 month by month, even though the amount thus accumulated is 
 only used once a year. 
 
 Still other considerations which will occur to the experienced 
 accountant should also be borne in mind. Reserve Accounts by 
 classification are Liability Accounts, and it is scarcely expedient 
 to allow them to grow to any considerable sum, simply because 
 they add a fictitious quantity to the Liabilities, offset by a corre- 
 sponding fictitious amount among the assets. Some plan, there- 
 fore, is desirable by which they may be dispensed with. 
 
 By opening secondary accounts wherever depreciation in 
 value or shrinkage occurs, we are able to wipe out the liability, 
 and in our system of classification perform what is equivalent to 
 subtracting the depreciation from the asset, a plan very generally 
 followed in statements of affairs. Of the two accounts thus 
 brought into use, one represents the amount of the depreciation 
 itself, and is located in the Investment Ledger. The other repre- 
 sents the reserve set aside for depreciation, and, as previously re- 
 
 '1 i 
 
 R'? 
 
 4) ! 
 
 i 
 
THE SELF-PROVING 
 
 w 
 
 „ive. from toe .o t.me .he or d.t ^ha^^^a . 
 profits of the business, or, what is the same, ere 
 
 L .He amount <- ;s charged up -— ^ ^roU't is 
 
 a part of the cost of the produ.. J^^^^ „, ,,„t 
 
 -::t:rr;reC::.°';^his^eansthe,iai,i,i. 
 
 f;l.e.h..here.r.^^^^^^^^^^^^^ 
 
 curs. Inasmuch as the ^^^'^^ investments them- 
 
 T Tstdnao. while the corresponding Depreciation Ac- 
 shows Its ongmai cost, wm ^^_ 
 
 , count shows what has been wr,tten off. B> t^. f'^' ;^„„,, .„ 
 plant are comphed with. 
 
; latter re- 
 ; from the 
 espondinji 
 usiners, or 
 A-Ccount is 
 , the debit 
 he hability 
 )n as it OC-. 
 dit account 
 lents them- 
 ent Ledger 
 eal vakte of 
 accountants 
 lal Account 
 eciation Ac- 
 n all the re- 
 reference to 
 inufacturing 
 
 SUBDIVISIONS OF THE LEDGER 
 
 In order to carry out in an efficient manner the scheme of 
 classification on which the Self-Proving Accounting System is 
 based, it is necessary to set apart separate ledger volumes to the 
 diflferent classes of accounts, or to assign to each of the diflferent 
 classes a subdivision of a single volume. Either plan will answer 
 so far as the essential requirements are concerned, but a combina- 
 tion of the two will secure the best results in most cases. Each 
 class of accounts, as the reader has perceived in what has pre- 
 ceded, is represented by a collective account of like name in the 
 Private Ledgei. For purposes of proof, therefore, the accounts 
 of each class should oe so much by themselves as to make it easy 
 to inspect them at any time, apart from all others, as, for ex- 
 ample, in taking off a trial balance or otherwise proving them by 
 comparison of their balances with the balance in the collective ac- 
 count in the Private Ledger. It becomes a matter of consider- 
 able importance, therefore, to the bookkeeper to determine just 
 where to locate a given class of accounts. 
 
 Certain accounts, by their nature, are best accommodated 
 by a ledger ruled in one special manner, while certain other ac- 
 counts are best accommodated by ledgers constructed upon a 
 different principle. Individual tastes will also differ in matters 
 of this kind, for no two business establishments can be satisfac- 
 torily managed upon exactly the same lines— at least, according 
 to the notions of their respective proprietors. Our directions in 
 this regard, therefore, are expressed in the most general terms. 
 
 t 
 
 }l : 
 
 1 
 
 it 
 
 t1 
 
 mm 
 
THE SELF-rUOVING 
 
 *c nr Sales Accounts as they are 
 For Customers' Account o Sa - '^ establishment. 
 
 „ec„ent,y caUed. in a --"' J^™ f; easoLb.e degree o, 
 wherein charges and ered.ts ""^^ ^ ^^^^^.^ ,„, ,,,,ich 
 
 regularity month after -" '•;-^^^^'; /„„ ,„,„ „, ledger that 
 monthly statements are «"'"=«''• 'fIVself-Proving Mercantile 
 has proven so satisfactory m "-.-;';' ^;';J, „,'„,, ,o,„n,e. 
 Ledger, illustrated in '-^-f .■" ^r'!," ^ .he special form 
 For accounts payable upon the -"— fj_^ ^ , J„,„ ,, ,he 
 o, ledger illustrated in fac-s,nnle -" J^^ J*'"; ^^^ „, ,„y.„i,,g 
 Sell-Proving Instalment Ledger, .s the best 
 that has been Revised. ^^^^^^ ^^^ ,^^ Self-Prov- 
 
 Both the Self-Provmg .|^ed as ledger mach.nes, 
 
 i„, instalment Ledger -^ ^^''^j:;'!, ever keeping before 
 grinding out balances month by m""'" .,,„„ „( ,i,e 
 
 L attention o, the '^^^^Z^c. at successive 
 — n: oC trorCrs the same advantages in use 
 
 '""fo?;"' Accounts, where a -i-ab. — 
 
 ,ems occur each -'^^f "--rtrsaXnera, form 
 note are made qu.te "^J^' ;;J;',\erewUh. may be employed. 
 ,, .he Mercantde Led -^^^^^^^^^^^^^ .^^ ^^ .^ ^^^ establishments 
 Indeed, such I'd^ers are f P,^ establishments, however, 
 
 with most satisfactory results. ^^ „^^ 
 
 prefer for Purchase A-^'''^''^^" t s de ibe' and illustrated 
 Balance column l.dge. ^ -ch^ ^ ^ ^^^„_ ^^ .„ ,, , 
 
 rrgroH— nces, including the booUUeepefs prefer- 
 
 e"'^^^- T A .r hv reason of its form, is.preferred 
 
 ^ Balance ^^^^^^^^^^^^ service in any system 
 
 by many accountants for a very ^^^^^^^ ^^ 
 
 with which it may be employed. The Balanc 
 
*^' 
 
 3 they are 
 iblishment, 
 
 degree of 
 
 for \vhich 
 ledger that 
 Mercantile 
 his volume, 
 ipecial form 
 nown as the 
 of anything 
 
 le Self-Prov- 
 ;r machines, 
 eping before 
 dition of the 
 at successive 
 ntages in use 
 
 le number of 
 ettlements by 
 ; general form 
 be employed, 
 establishments 
 jnts, however, 
 r known as the 
 and illustrated 
 , to be made in 
 :eeper's prefer- 
 
 rm, is.preferred 
 ; in any system 
 umn Ledger, to 
 
 ACCOrXTIX(S SYSTEM 
 
 0!) 
 
 this end, may be bound in several separate volumes, each allotted 
 to a class of accounts, or in one large volume, subdivided by col- 
 ored leaves, inserted at different points, in a way to allot different 
 sections to the different classes of accounts. 
 
 Whether in separate volumes or in a single volume, divided 
 as last mentioned, the Balance Column Ledger is found very sat- 
 isfactory for use for Purchase Accounts, Expense Accounts, 
 Manufacturing Accounts, Investment Accounts, Sundry Debt- 
 ors' Accounts, Sundry Creditors' Accounts, Reserve Funds Ac- 
 counts, and all Loss and Gain Accounts. It readily lends itself 
 to any subdivision of classification that may be desired. In 
 another place we describe a combined Expense Record and 
 Ledger, which has been found useful in many directions for the 
 Expense Accounts of a business, where the latter are several in 
 numl)er, with numerous cash items occurring. Still other special 
 ledgers might be en-merated. 
 
 The points to be considered in arranging the ledgers in a 
 given system of bookkeeping include the expense in time and care 
 of columns in the posting mediums for condensing or consolidat- 
 ing the items, and the labor of posting to separate accounts. 
 Thus, in discussing the question of the employment of the com- 
 bined Expense Record and Ledger, or some other special book 
 for a set of accounts, as contrasted with using a section of the 
 Balance Column Ledger for the same accounts, posting direct, 
 attention must be given to such details as the footing of the col- 
 umns in the combined form, compared with the labor of posting 
 individual items to regular ledger accounts. The columnar sys- 
 tem is a great labor saver in many cases, and yet, as all experi- 
 enced bookkeepers know, it can be carried to extremes, and, by 
 the very effort to utilize it, made into a labor producer. 
 
 What the bookkeeper should do at the outset, in the matter 
 of arranging his accounts with respect to the different ledgers, is 
 
 1 . 
 
•V: 
 
 n 
 
 THE SBLF-rROViNG 
 
 o, the business, and then to P-P^^f^f ;;:^,. „, should 
 particular led.er » .'---;;, .^ X, thus gua.din, 
 keep the diagram always '=='°':' " " ' „^^„, („ distributing 
 
 against a Cass o. f " -/'[^j' ^ ^'"X. growing out o, 
 — ::e:a"tT:--Wfa.ven account has been 
 
 established. ._^ ^j_.^ connection, show- 
 
 ing across the top the leog ^ ^^^^ principal 
 
 ness n,ay be divided, and down the »'<1= ''^ "; ^^^^, i„ 
 
 ledger in the books of the business. 
 
 ! t 
 
the needs 
 ig in what 
 He should 
 5 guarding 
 istributing 
 zing out of 
 it has been 
 
 ;tion, show- 
 is of a busi- 
 he principal 
 rk shows in 
 liagram also 
 Ledger and 
 isions of the 
 
 ACCOUNTING SYSTEM 
 
 71 
 
 A4v«rtising 
 
 Bank 
 
 'Bonds 
 
 Bonds Rttult* 
 
 Buylrg 
 
 Clipltal 
 
 Carfart and Uatianfir 
 
 Cartaga and atoraga 
 
 Calh 
 
 Contlngani!; Accta. (Bad Dabta, Racataa, a 
 
 Countlra and Shelvlna 
 
 Cradltors (Purohaiea) 
 
 Crtdltori (Sundry) 
 
 'Dablora llnalalaant) 
 
 Sabtora (Cpan Account] 
 
 Dapraolatlon Acota. (Machlnarj, Flant, at 
 
 Dlvldanda and Dlvialona 
 
 Enployaa' Aocounta 
 
 Ixpanaa Ladiar 
 
 Paotory Plxturaa 
 
 rtxad Chargaa (Vanufaoturlng) 
 
 Tual and Light 
 
 Oaa Plxturaa 
 
 laattng Aaparatua 
 
 laDalmnt and Surplua 
 
 Inatalawnt Ladgar 
 
 Xnsuranoa and Taxaa 
 
 Zntaraat and Dlacount 
 
 Invaatoant Ladgar 
 
 Labor (Manufaoturlng) 
 
 Legal Eapanaa 
 
 Loaa and Oaln Ladgar 
 
 Manufacturing lapansal 
 
 Manufacturing Ladgar 
 
 Manufacturing Plant 
 
 Matarlala . 
 
 Mtrobandlaa (Saa Buying and Balling) 
 
 Marchandlaa Loaa and Qaln 
 
 ■laaallanaoua Loaa and Oaln 
 
 Notts rayabl* , 
 
 Mot«a Rasalvabl* 
 
 Offlca Pumltur» 
 
 Officers (of Corporation} 
 
 Eroperty (Sea Baal Batata) 
 
 Proprietora Buying Account 
 
 Proprietors' Drawing Account 
 
 Purchaaa Ladgar 
 
 Rtal Batata 
 
 Real Estate Reaulta 
 
 Rebatea and Alloaancaa 
 
 Rent 
 
 Repairs and Breakage 
 
 Reserve Funds Ledger 
 
 Reaerva for Bad Debts 
 
 Reeerve for Rebatea and Allovanees 
 
 Ressrve for Depreciation of Store Plant 
 
 Raaarva for Depreciation of Mfg< Plant 
 
 galling 
 
 Btstionai'y aod Suppllat 
 
 Stockholdara' Accounts 
 
 Stocks (Sharts ta.Corporgtlora) 
 
 eton Plant 
 
 Sundry Crsditora' Lsdgtr 
 
 Sundry Debtor*' Ladgar 
 
 Sttapended List 
 
 Telegraph and Talaphon* 
 
 Unclassified Ispenses 
 
 ■•gss and talarlas 
 
 c.) 
 
 • 
 • 
 
 / 
 
 / 
 
 v' 
 
 n 
 
 DIAGRAM OF UEDQER SUBDIVISIONS FOR AN INSTALMENT BUSINESS 
 
 

 li 
 
 MERCHANDISE ACCOUNT 
 In the Self-FrovinK Accoun.inR Sy.te,,, the Merchandise 
 Acconn.. where a strie.ly trading hu.iness i. -°f^^'fZ^_ 
 videcl into two parts, designated as Bny.ng and Selhng r spec 
 ,„lv. Where a n.ann.aetnring departn.en, is conducted ,n con- 
 nection with the trading department stiU another ^^'-^^^Z 
 Merchandise Accotmt is made, called Manufactnr.ng. In order to 
 „: the relationship o, each o, these to the others ..may e - 
 marked that Buying and Manuiactnnng are --<;' J ^^^^^^^^^^^ 
 of the Merchandise Account as ordinardy con.U.cted. uh,k Selhng 
 
 store or warehouse. , i „^ ^^r. 
 
 As sales are made two sets ol prices are »""f Velng 
 resenting the cos. of the articles sent out and the other the selhng 
 fi^^^ es. From time to time-either d,ily, weekly or mon hly 
 as may be the preference of the manager-the cost amounts of the 
 gords'sold ar^ footed and Selling Account is dehite w.th he 
 amount and Bttying Account credited. By th.s step t wo hmg 
 are accomplished. Having credited Buying Account at cos. 
 
 t*jrf)S»« - " 
 
jrchandise . 
 ted. is cli- 
 ng respec- 
 :ed in con- 
 iion of the 
 [n order to 
 may be re- 
 the debits 
 hile Selling 
 ;ed. 
 
 ods as they 
 cartage on 
 edited with 
 tions in in- 
 goods pur- 
 time shows 
 rered at the 
 
 d — one rep- 
 :r the selling 
 or monthly, 
 lounts of the 
 ed with the 
 3 two things 
 unt at cost 
 
 ACCOUXTIXO SYSTKM 
 
 m 
 
 prices with the goods disposed of, the balance in Buying Account 
 represents the goods on hand — in other words, the inventory. In 
 the second place, debiting Selling Account at cost prices with the 
 goods sold, and then in regular course crediting Selling Account 
 with the goods sent out at selling prices, causes that account by its 
 balance to show the gross profit (or loss). 
 
 Debit and credit columns in Selling Account are useful, not 
 only for the reason last explahied. but because in this account, as 
 well as in Buying Account, corrections, deductions and allow- 
 ances are sometimes made, and also because occasionally goods 
 arc returned by customers. By arranging the items as above de- 
 scribed every provision is made for the requirements that arise, 
 with the result that the balance in Selling Account always shows 
 gross profits (or losses) as they occur. 
 
 Manufacturing Account, which for present purposes is to be 
 regarded as a subdivision of Merchandise Account, may be con- 
 ducted as a single account, to be debited with all the costs, includ- 
 ing materials, labor, superintendence, rent, power, insurance, de- 
 preciation of machinery, etc., and credited with goods produced, 
 at cost prices. The debit side of Manufacturing Account then 
 shows cost and the credit side product. Where, for statistical 
 purposes, it is desired to subdivide Manufacturing Account, it 
 may be done to whatever extent is required. The goods produced 
 in the manufacturing department are to be taken over by the Buy- 
 ing Account at cost prices, the same as though the goods were 
 bought from some one else. Manufacturing Account then makes 
 the goods and shows their cost, Buying Account carries the goods 
 and shows at all times the amount on hand, while Selling Account 
 disposes of the goods and shows the profit or loss that is made 
 upon them. 
 
 HHiilii 
 
 KWWI1 liitiiiiiiiiiiiyi 
 
 ■ i^ 
 

 
 l^IANUFACTURING 
 
 We have briefly treated of ManufaOuring Account as a sub- 
 division of Merchandise Account, not only in the chapter referring 
 to Merchandise Account, but also in the chapter treating of the 
 Classification of Accounts. In a trading or merchandising busi- 
 ness, such as an instalment business usually is, Manufactunng is 
 only a subordinate division, and yet it frequently extends into di- 
 mensions that render its correct treatment in the accounts of the 
 concern a matter of great importance. Even in those cases where 
 the purpose of the management is to conduct a strictly merchan- 
 dising business, it is found necessary to maintain at least a repair- 
 ing department for the prompt and economical restoration of 
 damaged goods and also for the accommodation of customers. 
 The repairing department is, in effect, a manufacturing depart- 
 ment, and when it is once organized there is but a step more re- 
 quired to produce in it some of the goods which the establishment 
 has been buying outside. It is important, therefore, in this pres- 
 entation of accounts, that brief space at least be given to the prin- 
 ciples underlying the conduct of a Manufacturing Account, leav- 
 ing to another volume a complete exposition of the application of 
 the Self-Proving Accounting System to a large manufactunng 
 
 business. 
 
 In another chapter we discuss Repairing and Jobbing. 
 
 showing how the small manufacturing department, which it is 
 necessary to maintain simply for repairs to goods and accommo- 
 dation to customers, in connection with almost every instalment 
 
t as a sub- . 
 ;r referring 
 :ing of the 
 lising busj- 
 acturing is 
 ids into di- 
 nnts of the 
 :ases where 
 y merchan- 
 ist a repair- 
 toration of 
 customers, 
 ing depart- 
 ep more re- 
 tablishtnent 
 in this pres- 
 to the prin- 
 xount, leav- 
 pplication of 
 anufacturing 
 
 and Jobbing. 
 , which it is 
 id accommo- 
 ry instahnent 
 
 ACCOUNTING SYSTEM 
 
 75 
 
 Store, may be conducted through the medium of the Expense Ac- 
 counts of the business. This plan of luanageinent meets a cer- 
 tain class of requirements vvitli fairly satisfactory results. The 
 two points on which we shall speak in this chapter are, first, the 
 management of the accounts of a complete manufacturing depart- 
 ment which is relatively small and therefore only a subordinate 
 division of a merchandising business, and wherein the goods pro- 
 duced are sold entirely at retail in the other departments of the 
 business, and, second, the conduct of the accounts of a manufact- 
 uring department which, while being the adjunct of a merchan- 
 dising business, has grown to large dimensions, with a considerable 
 share of its output sold in a wholesale way to other retailers. We 
 shall not attempt to be exhaustive on either of these subjects, for, 
 as before mentioned, their complete treatment demands a separate 
 volume. 
 
 The only object which a merchant can have in view in organ- 
 izing a manufacturing department in connection with his regular 
 business is to produce goods more cheaply than they can be 
 bought. If he could buy like quality, style, character and finish 
 more cheaply than he could make them, or even as cheaply, he 
 would be very foolish to enter upon manufacturing at all. He 
 should have good and sufficient reasons for investing money in a 
 manufacturing plant and in undertaking the care and supervision 
 of a department which at best may be depended upon to make 
 heavy drafts upon him in this regard. 
 
 With this proposition, therefore, as a basis that the goods 
 produced either must be cheaper for like quality or better at the 
 same cost than could be bought in the market, it is evident that 
 the operations of the manufacturing department of a trading en- 
 terprise should be conducted in all respects in a way to produce 
 goods at the lowest possible price consistent with quality, and 
 that the accounts should be conducted simply to show costs and 
 
 ■■■;.^^»Mi*WBHe*^'-"^"' 
 
n 
 
 'I'lIK HKI.K riloVINU 
 
 1 
 
 not to look after tlic profits that follow upon sclhnK. I hey 
 should be so arranged as to show the net cost of each article pro- 
 duced, and the cost prices from time to time should be compared 
 with the prices that it would be necessary to pay for the same 
 goods if bought from other manufacturers. The profit on goods 
 n,a,u,factured. as well as on those bought, belongs to the sales 
 department, and therefore, as produced, the goods are to be trans- 
 ferred from the Manufacturing Account to the Huyuig Account. • 
 The mamifacturing department should not carry any stocU of 
 goo.ls on hand, so far at least as its accounts are concerned. 1 he 
 carrying of stock belongs to the Buying Account, as we have 
 elsewhere explained, and this rule should apply the same where 
 goods are made as where they are bought. The finished goods 
 as thev are produced should be taken out of the accounts repre- 
 senting the manufacturing department and transferred to the 
 Ruving Account. The necessary steps for accom,)lishmg these 
 ends may be features of bookkeeping only, but in the manage- 
 ment of the accounts they are important matters, and whether 
 as a fact the goods change position or not the records should be 
 managed upon the plan here laid down. 
 
 So far as specimen accounts are concerned, Manufacturmg. 
 in the illustration presented in this volume, is represented as a 
 single account to be debited with all the costs that enter into the 
 goods produced, including material, labor, superintendence, rent, 
 power, fuel, light and the hundred and one other items of expense, 
 and to be credited with the goods produced at actual cost, m a 
 way to close the account. The balance in Manufacturmg Ac- 
 count, if a balance ever is shown, would represent the material on 
 hand unconsumed or goods in process of construction and not yet 
 
 charged ofif . 
 
 It must be evident to every bookkeeper, however, that Man- 
 ufacturing Account may be subdivided to whatever extent is de- 
 
ACCOUNTINU 8Y8TKM 
 
 rt 
 
 {T. Tliey 
 rtiole pro- 
 C(Mii pared 
 the same 
 t on jToocls 
 ) the sales 
 o be trans- 
 r Account. ■ 
 y stock of 
 ncd. 'Ihe 
 is we have 
 ame where 
 jhcd goods 
 unts repre- 
 red to the 
 ,hing these 
 le nianage- 
 iid whether 
 s should be 
 
 uifacturing. 
 sented as a 
 Iter into the 
 dence, rent, 
 ; of expense, 
 al cost, in a 
 cturing Ac- 
 : material on 
 and not yet 
 
 r, that Man- 
 extent is de- 
 
 sired. A separate account, for example, may l)c opened with Ma- 
 terials, or with each of several dilTercnt kinds of materials A such 
 separate accounts are desired by reason of their statistical value. 
 A separate account may also be opened with Labor, and another 
 with Superintendence. Rent, Power and other general expenses 
 which have to be spread over the product in dctcrnMning the cost. 
 Each of these accounts, however, would be conducted up(m the 
 same plan as the single account, so far as it has been described in 
 the pages preceding; and where several accounts are employed 
 they are summarized or totaled in a single account called Manu- 
 facturing Account, upon the principle underlying the group ac- 
 counts, as described in the chapter on Classification of Accounts. 
 
 The subdivisions of Manufacturing Account so far men- 
 tioned are really subdivisions of the debt or cost side of that ac- 
 count. It is possible, also, and very desirable in many cases, to 
 have subdivisions on the credit or product side. The Cost Ac- 
 counts would, of course, require a debit and a credit in each for 
 proper management, and the Product Accounts likewise require a 
 debit and a credit side for their conduct. 
 
 The requirement in every manufacturing business is to know 
 the cost, not only of each lot of goods that is produced, but also 
 of each individual article, thereby determining the figure at which 
 it can be sold. It is recommended, therefore, in order to keep 
 track of individual articles, that an order number be given to each 
 lot of goods taken out, and that an account be opened with each 
 order, using the number for the name of the account, qualified, if 
 the same is deemed expedient, by a designation of the kind of 
 goods. Thus, order No. 99 might represent 500 chairs of a cer- 
 tain description. As the work progresses this order No. 99 will 
 be debited with the cost of the material used and also with the 
 amount of labor expended and all other items of direct expense. 
 Finally, a certain amount, determined by percentage or otherwise, 
 
 1 i 
 
i 
 
 78 
 
 THE SELF-PROVIXG 
 
 as we shall discuss further along,' is to be added to the cost items 
 for the general expenses, in order that this particular lot of goods 
 shall stand its proper share of the cost of running the department. 
 
 If the cost items have been correctly kept and posted to the 
 debi*- of order No. 99, then their aggregate amount will represent 
 the cost of the 500 chairs, and this is the amount that is to be 
 charged to Buying Account and credited to Manufacturing Ac- 
 count when the goods are transferred from the manufacturing 
 department to the sa|es department. The cost items as they are 
 charged to order No. 99 are credited to the several accounts rep- 
 resenting Materials, Labor, General Expense, &c. 
 
 This brief outline is sufficient to show the general course to 
 be pursued in the conduct of the accounts of a manufacturing de- 
 partment, and there only remains in this division of the subject a 
 brief consideration of the methods to be followed in order to secure 
 a proper spreading over the goods produced of the general ex- 
 penses already referred to. These general expenses may be best 
 apportioned, perhaps, by way of percentage, and yet there are ob- 
 jections to this plan, in special cases at least, and therefore no arbi- 
 trary rule can be laid down in this regard. The percentage plan 
 is most commonly employed, and therefore is the one to which 
 we shall give attention. 
 
 The rate of percentage is to be determined by the records of 
 the previous year, and in the absence of previous experience must 
 be based upon the best estimate that can be made of the opera- 
 tions of the current year. The foundation on which the percent- 
 age is based is a m'vtter of considerable importance. In some es- 
 tablishments it is taken on the total amount of materials pur- 
 chased. The objection to this is that the prices of materials of 
 almost all kinds vary so much from time to time that there may 
 be some thousands of dollars' difference between the cost of a 
 given amount of material this "year and the cost of the same 
 
 .^^VMVVJfn-^Si 
 
 "'T!^ r, »i|)ttaUi>i1*^^4 
 
e cost items 
 lot of goods 
 departmen*. 
 osted to the 
 ill represent 
 hat is to be 
 icturing Ac- 
 inufacturing 
 s as they are 
 ccounts rep- 
 
 ral course to 
 facturing de- 
 the subject a 
 der to secure 
 ; general ex- 
 may be best 
 there are ob- 
 efore no arbi- 
 rcentage plan 
 one to which 
 
 the records of 
 perience must 
 of the opera- 
 1 the percent- 
 In some es- 
 naterials pur- 
 )f materials of 
 hat there may 
 the cost of a 
 t of the same 
 
 
 ACCOUNTING SYSTEM 
 
 n 
 
 amount of material last year. With fluctuations of considerable 
 amount between any two years, the percentage, of course, would 
 be wrong or very misleading. In other establishments the per- 
 centage is based upon the total output, comparing the total of 
 general expenses with the total amount of goods produced. 
 Practically the same objection prevails in this case as in the 
 former, because a part of the output is represented by the mate- 
 rials consumed, and, as we have pointed out, these may have 
 varied greatly in price between last year and the present time. It 
 is not satisfactory, either, to base the percentage upon the goods 
 produced, taken at selling prices, because those figures are always 
 in a sense speculative in character, and vary considerably from 
 time to time. ConditioiiS of the market are such that goods are 
 sometimes sold at no profit at all, or even below cost, while at 
 other times, by reason of a favorable turn, the price is very much 
 inflated. 
 
 The best experience of leading manufacturers has demon- 
 strated the fact that of all the elements entering into a manufact- 
 uring business which are possible to use as the basis of a percent- 
 age for spreading costs of general expense, there is nothing that 
 varies less frequently, or in so small an amount one year compared 
 with another, as labor. The total amount paid for labor from 
 year to year, the same number and general grade of men being 
 employed, varies less than any other item of expenditure, and 
 therefore the Labor Account is deemed the best for use as a foun- 
 dation on which to base the percentage covering general ex- 
 penses. 
 
 Suppose, for example, that the total cost of rent, power, in- 
 surance, watchmen, superintendenc, time clerk, and all other 
 items of expense that are impossible to apportion and charge spe- 
 cili-ally to the goods produced, amount in a certain manufactur- 
 ing department to $5,000 a year; and suppose, further, that the 
 
 .^iftVtii iwimu. g 
 
80 
 
 THE SEIiF-rROVIXG 
 
 pay-roll amounts for the same year to $25,000, and that this, in 
 the estimation of the managers of the estabUshment, is about the 
 ratio of these items at the present time. How shall the costs c^ 
 a given lot of goods in matter of general expense be ascertained? 
 Referring now to the example above mentioned, order No. 99 tor 
 500 chairs, let it be assumed that all the tangible items of cost 
 have been charged to the order, including materials, labor, etc., 
 and that the only thing to be added is the allowance for the gen- , 
 eral expense of the establishment. Suppose, for the sake of illus- 
 tration, that the item of labor upon the order in question amounts 
 to $100. The percentage of dead expenses determined by the 
 figures above presented during the past year was 20 per cent- 
 that is, the dead expenses cost one-f^fth as much as the amount of 
 the pay-roll. We therefore add arbitrarily to the items of cost 
 shown by order No. 99- an amount equal to one-lifth, or 20 per 
 cent., of the amount of labor which is shown to have gone into 
 
 that order, or $20. 
 
 This presentation of a Cost Account method is in mere out- 
 line, and we purposely omit all consideration of methods to be 
 used where the volume of business greatly varies from time to time 
 without corresponding changes in amount of dead or general ex- 
 penses, because their complete presentation would occupy more 
 space than can be spared to the subject, and because nothing short 
 of a full discussion would add anything of practical value to the 
 merchant who starts a manufacturing department as a division of 
 
 his general business. 
 
 By the plan of keeping the accounts here shown Labor Ac- 
 count would be debited from week to week with all the labor paid. 
 In turn, it would be credited with the amount of labor appHed to 
 each order, as the orders passed through the factory. If the ac- 
 counts are p.operly kept, all the labor will have been taken out of 
 Labor Account at the end of the year and charged to the several 
 
 wmmmm 
 
 »iw-X69W;/-f ;'S*^8i«aSte<' '■- 
 
ACCOUNTING SYSTEM 
 
 81 
 
 at this, in 
 about the 
 le costs c1 
 certained? 
 No. 99 for 
 ms of cost 
 labor, etc., 
 )!• the gen- . 
 ke of illus- 
 m amounts 
 led by the 
 per cent — 
 amount of 
 ;ms of cost 
 , or 20 per 
 ; gone into 
 
 1 mere out- 
 hods to be 
 ime to time 
 general ex- 
 :cupy more 
 (thing short 
 ^alue to the 
 I division of 
 
 Labor Ac- 
 i labor paid, 
 ir appHed to 
 If the ac- 
 taken out of 
 ) the several 
 
 Order Accpimts. Labor Account, accordingly, will close even. 
 
 In the same way, erch kind of material is charged to its own 
 proper account when it is bought, and as portions are used, the 
 proper account is credited and the Individual Order Account is 
 debited. Each Material Account, therefore, at the end of the 
 year, or whenever the books are to be closed, should show by its 
 balance only the amount of material on hand, or the inventory. 
 The correctness of the accounting will be demonstrated by a com- 
 parision of the actual inventory with the balance that the accoimt 
 calls for. 
 
 The General Expense Account, by whatever name it may be 
 called, is debited as the costs are made, including all such items as 
 superintendence, insurance, watchmen, time clerk, and all those 
 expenses which cannot be properly apportioned among the orders. 
 From time to time, as the orders are completed and charged up, 
 this account is credited with the amounts charged to the indi- 
 vidual orders as determined by the percentage established. In 
 the illustration above presented, the General Expense Account 
 would be credited $20 at the time that order No. 99 was debited 
 with $20. If the percentage employed is correst, then at the end 
 of the year, or whenever the books are closed, the credits to this 
 account will offset the debits. 
 
 There should be no balance in the General Expense Account 
 at the end of the year, for all of the expenses which it represents 
 should have been apportioned among the Order Accounts in the 
 way above described. If, however, by superior economy and close 
 management, the general or dead expenses of the manufacturing 
 department for the current year have been made less than for the 
 preceding year, and the order charges, as they have been made, 
 have still been based upon the record of the preceding year, then 
 this account may show a credit balance at closing, which, of 
 course, must be disposed of through the Loss and Gain Account 
 
 u— 
 
 ittHiliii 
 
grr 
 
 82 
 
 THE SELF-rROVIXG 
 
 in the usual manner. On the other hand, if the expenses rela- 
 tively have been higher the present year than for the preceding 
 year, and the charges to the orders nevertheless have been based 
 upon the ratio determined by the preceding year, then this ac- 
 count will show a debit balance, which, of course, under the cir- 
 cumstances, can only be disposed of through the Loss and Gain 
 Account. 
 
 One special item of cost that is very commonly lost sight of 
 in Manufacturing Accounts is that of depreciation of plant. It 
 ccsts, we will say for example, $10,000 to fit up a factory. This 
 $10,000 is expended before a wheel is turned or a dollar's worth 
 of goods produced. At the end of the yv=!ar how much is the equip- 
 ment worth? In a practical way it wiil be answered that it is 
 worth what it cost. An argument in support of this is that it 
 would cost just as much to equip anew. Nevertheless, the saga- 
 cious business man will say that something must be written off for 
 depreciation. Not only should something be written off for de- 
 preciation in the sense of wear and tear, but still other considera- 
 tions should not be overlooked. Machinery, of course, wears out, 
 but in this age of rapid progress, various kinds of machines are 
 frequently superseded by improved devices long before they are 
 worn enough to be greatly hurt, and therefore the real life of some 
 machines is much less than the term determined by their wear 
 alone. 
 
 Certain facilities necessary to a factory are worth absolutely 
 nothing when it comes to a question of removal, abandonment, or 
 change of any kind. Among these may be mentioned' shelving, 
 partitions, bins and woodwork in general. Items of this sort are 
 expensive in their first cost, but, for the reasons above explained, 
 depreciate very rapidly after once in place. On the other hand, 
 certain standard and staple machines are used year after year with- 
 out perceptible change in value and with no apparent danger of 
 
 ':ytit:S!ss ESi im t w in »ii ' s t uf.- ■ 
 
jnses reU- 
 preceding 
 jeen based 
 ;n this ac- 
 ler the cir- 
 5 and Gain 
 
 )st sight oi 
 plant. It 
 ;ory. This 
 lar's worth 
 s the equip- 
 i that it is 
 ,s is that it 
 s, the saga- 
 itten off for 
 I off for de- 
 r considera- 
 ;, wears out, 
 lachines are 
 )re they are 
 Ufe of some 
 r their wear 
 
 h absolutely 
 donment, or 
 led" shelving, 
 this sort are 
 ft explained, 
 other hand, 
 er year with- 
 nt danger of 
 
 ACCOUNTING SYSTEM 
 
 83 
 
 being superseded by new devices. No fixed rule, therefore, can 
 be laid down for estimating depreciation of plant. One percent- 
 age would be appropriate for heavy staple or standard machinery, 
 another for small and special machines and hand tools, and still 
 another for such items as benches, shelving and the like. No bet- 
 ter rule can be offered for determining the amount to be written 
 off than the application of the cool-headed judgment of a business 
 man who in his business experience has seen practically the vicissi- 
 tuc es of manufacturing equipment. 
 
 Whatever the basis may be that is adopted for estimating the 
 depreciation of plant, the amount of the depreciation is something 
 also that must be spread over the goods produced as a part of 
 their cost. If, for the sake of illustration, the depreciation in the 
 machinery and fixtures of a given manufacturing department 
 amounts to $i,ooo a year, then that $i,ooo must be spread over 
 the goods produced in a year's time in a way to let each individual 
 order an 1 each individual article bear its fair share. This thou- 
 sand dollars may be spread over the output by way of a percentage, 
 in the same general manner that the general or dead expenses of 
 the factory are spread. 
 
 An account with Depreciation should be opened up, to be 
 credited from time to time with the amount that is charged to the 
 orders upon the plan above. described and to be debited at the 
 end of the year, or whenever the books are closed, with the 
 amount that is written off from the Plant Account. In some fac- 
 tories the percentage to be charged to orders is determined some- 
 what after the fashion above described, and then the amount is al- 
 lowed to accumulate on the credit side of Depreciation Account, 
 as the work progresses, until the end of the year, when so much is 
 written off the Plant Account as the credits in that account repre- 
 sent. This plan has the advantage of exactly balancing the De- 
 preciation Account and of writing off just as much as the goods 
 
r 
 
 i\ 
 
 I ! 
 
 ^ THE SELF-PROVING 
 
 produced have been made to Stand during the term. 
 
 We now come to the consideration of the accounts to be 
 conducted where the manufacturing department becomes so ex- 
 tended that the goods produced, in addition to being sold 
 through the regular sales department of the business, are jobbed 
 or sold at wholesale in various directions. What modification or 
 addition to the books should be made in view of these conditions? 
 In our discussion of the divisions of the Merchandise Account, par- 
 ticulariv in the chapter entitled Classification of Accounts, we 
 have pointed out that there may be various Buying Accounts and 
 various Selling Accounts, one line of division being a diflference in 
 profits in the classes of goods represented. At the outset, under 
 the conditions which we are now considering, it should be re- 
 marked that the difference in profit on the goods sold between 
 jobbing prices and retail prices very generally warrants two Sell- 
 ing Accounts. .^ 
 
 The Private Ledger and Perpetual Balance Sheet supplied 
 with the Self-Proving Accounting System has various blank col- 
 umnc adapted for use in cases of this kind. The regular Selling 
 Account could be qualified by adding to it "Retail," and a new 
 Selling Account, entitled Selling "Wholesale," could be opened in 
 one of the blank spaces. Let this Wholesale Selling Account take 
 from Buying Account all those goods which are jobbed or sold 
 wholesale, and let it in turn receive the credits for the sales made 
 in a wholesale way. The result will be that the balance in this ac- 
 count will always show the profit or loss on the goods that are sold 
 
 to the trade. 
 
 A similar division of personal accounts should be made in the 
 section devoted to Accounts with Customers. The Private 
 Ledger and Perpetual Balance Sheet, as herein illustrated, shows 
 columns for the accounts with Instalment Customers and with 
 Sundry Debtors. Sundry Debtors, as we have explained, is the 
 
 ^j?gig^iL il j , ! ljlHMjtU""''T ^' 
 
 mmmi- i--'-"-" 
 
ACCOUXTIXO SYSTEM 
 
 So 
 
 )unts to be 
 )mes so ex- 
 being sold 
 , are jobbed 
 lification or 
 conditions? 
 ccount, par- 
 ccoinits, we 
 ccounts and 
 diflference in 
 >utset, vinder 
 ^lould be re- 
 sold between 
 nts two Sell- 
 
 leet supplied 
 us blank col- 
 gular Selling 
 ," and a new 
 be opened in 
 Account take 
 jbbed or sold 
 he sales made 
 nee in this ac- 
 s that are sold 
 
 )e made in the 
 The Private 
 strated, showJ 
 Tiers and with 
 plained, is the 
 
 division in which the accounts with those various persons are lo- 
 cated to whom credit from time to time is extended upon some 
 special or unusual basis. It is intended to be the miscellaneous 
 division, the catch-all of this general class of accounts. A set of 
 blank columns, however, is provided in Accounts with Debtors, 
 which, it is suggested, should be used for the special purpose now 
 in view, and should be named Wholesale Customers or Trade Cus- 
 tomers. 
 
 Assign a certain portion of the Debtors' Ledger to these ac- 
 counts and then let this new columnar division of the Private 
 Ledger and Balance Sheet bear the same relation to the new set 
 of accounts that the Instalment division bears to the accounts in 
 the Instalment Ledger. By this plan the wholesale trade will be 
 kept entirely distinct from the retail trade, in record of profits, in 
 general accounts and in individual accounts. 
 
 
CAPITAL ACCOUNT VS. PROPRIFTOR'S ACCOUNT 
 
 The treatment of the Capital Account of a business is fre- • 
 quently a matter of some confusion and uncertainty. The con- 
 fusion occurs in failing to distinguish between the amount in- 
 vested in the business as capital, and the sums which are with- 
 drawn from time to time by the proprietor or proprietors for per- 
 sonal expenses. The uncertainty is owing in many cases to the 
 loose ideas of both proprietor and bookkeeper with respect to the 
 permanency of the investment account. The best results in 
 accounting are obtained by strict classification in this matter as 
 well as in all others. It is expedient to regard the capital of the 
 business as a fixed quantity, not to be changed on the books, save 
 only as it is varied by an additional investment, declared to be such, 
 or by a positive withdrawal of capital, also declared to be such at 
 the time. 
 
 The Capital or Investment Account of the business, it is rec- 
 ommended, shall be an account separate and distinct from the pro- 
 prietor's personal account. Even though the business be owned 
 by one man this course is expedient. When the business is the 
 property of a partnership between two or more men it is still more 
 desirable from an accounting point of view. In general this plan 
 is advisable for the purposes of correctly declaring results and 
 showing the progress of the business from day to day. A good 
 plan is to treat the Capital Account of the firm or single owner just 
 as though it were the capital of a corporation represented by stock 
 certificates. Such a course will save many complications and 
 
:COUNT 
 
 ess is fre- 
 The con- 
 nount in- 
 are with- 
 rs for par- 
 ses to the 
 ect to the 
 results in 
 matter as 
 ital of the 
 ooks, save 
 to be such, 
 be such at 
 
 3, it is rec- 
 m the pro- 
 be owned 
 less is the 
 still more 
 1 this plan 
 ssults and 
 A good 
 3wner just 
 d by stock 
 tions and 
 
 ACCOUNTING SYSTEM 9f 
 
 avoid perplexing situations from which only expert talent can 
 derive the proper result. If the bookkeeper becomes imbued with 
 this idea of treating the Capital Account as a fixed quantity, with 
 all withdrawals, etc., to be recorded in the partner's private ac- 
 count, and proceeds accordingly, he will encounter no embar- 
 rassing difficulties, but instead will find the way easy at every step. 
 
 The private account with the proprietor, recording the 
 moneys drawn from the business for personal expenses, it is rec- 
 ommended to open in that portion of the ledger known as Sundry 
 Debtors. The proprietor will be a debtor to the business until 
 the amounts of his drafts have been ofifset by a credit for services 
 or by a portion of the profits of the business. 
 
 Several ways may be suggested for managing the proprietor's 
 private account in this particular. The amounts withdrawn may 
 be allowed to accumulate to the end of the year, to be ofifset at 
 that time by a credit from Dividends and Divisions Account, or 
 the credit from profits may be made monthly. The proprietor 
 may also be credited month by month with a salary allowance, the 
 amount of the allowance being proportionate to his assumed value 
 in the business. This last suggestion is based upon the generally 
 admitted proposition that no business can be declared to be mak- 
 ing money in the strict sense of the word until it has returned an 
 interest on the capital employed equal to what could have been 
 obtained for that capital if it had been invested in the open mar- 
 ket under like conditions of risk, together with an amount equal 
 to the salary the proprietor could have earned had he also sold his 
 services in the open market. Crediting the proprietor with a sal- 
 ary, therefore, which, of course, would be charged as one of the 
 Expenses of Doing Business, puts the business in correct relation- 
 ship to the Profit and Loss Account at all times. 
 
 Sometimes the proprietor of a business becomes the cus- 
 tomer of that business to the extent of buying goods from the 
 
at^ 
 
 i „-|[rt i - | -i i ¥ "i-iin ii n --mn ■- ' . y - i ffif ii ' ■'■t J i . 
 
 H THE i^KLF-rKOVIXO 
 
 Store. On the basis of classification, and for reasons explained in 
 another pape in this book, where classification of accounts is 
 specially discussed, it is recommended in such cases that an ac 
 count be opened with the proprietor for goods purchased, locating 
 the account in Sundry Debtors ledger. To close this account, 
 whenever it is desired to do so let the proprietor draw the cash on 
 his salary account or otherwise and pay the amount. This, of 
 course, amounts to a cross entry through the medium of the cash 
 book. This plan is not essential to the system here explained, but 
 every intelligent bookkeeper will readily perceive that such a 
 course simplifies the entries to be made whenever goods are taken 
 on account by the proprietor or a partner. Of course, if desired 
 a cross entry through the cash journal can be made direct, but in 
 that case the bookkeeper would ordinarily proceed without a 
 voucher, and vouchers are always desirable. 
 
 Again, where the proprit. jr lends the business an amount of 
 money for a short time, or advances some capital on a temporary 
 basis, it is expedient to open an account for the transaction in that 
 portion of the ledger known as Sundry Creditors. If the money 
 furnished is intended to be a permanent addition to capital, then, 
 of course, the Capital Account should be credited, as elsewhere 
 explained. But if, as frequently occurs, the amount furnished is 
 advanced only as a temporary accommodation to the business, 
 and is to be repaid at an early date, tnen it is expedient to let Capi- 
 tal Account alone and to credit the amount to a special account 
 opened with the proprietor in that part of the ledger devoted to 
 the accounts of creditors of the business. 
 
 This plan may be objected to by certain bookkeepers, because 
 in the event of failure of the business, the private account of the 
 proprietor, as one of the liabilities of the concern, would be in- 
 stantly thrown out by any competent auditor, and more especially 
 by the courts. All this is frankly admitted, but, on the other 
 
 >s«S!SB«S!WS«aSS«?BS 
 
ArCOt'N'TINO 8YSTE>f 
 
 SO 
 
 plained in 
 counts is 
 lat an ac 
 I, locating 
 i account, 
 le cash on 
 This, of 
 if the cash . 
 ained, but 
 at such a 
 , are taken 
 if desired 
 ect, but in 
 without a 
 
 amount of 
 temporary 
 ion in that 
 the money 
 pital, then, 
 elsewhere 
 urnished is 
 e business, 
 ;o let Capi- 
 ial account 
 devoted to 
 
 :rs, because 
 )unt of the 
 ould be in- 
 e especially 
 I the other 
 
 hand, it should be remembered that the object of bookkeeping is 
 to take care of a going business — not to provide for one that is 
 insolvent. Accordingly it is not necessary to assume in advance 
 that the result of the business is to be disastrous, and therefore to 
 commence arranging the accounts as they would l)e classified on 
 the assignee's schedules. The accounts that are opened and k«'i)l 
 in a business should always show the correct relationship of the 
 business to the proprietor, as well. also, as the relationship oi 
 debtors and creditors to the business. A temporary loan made t' 
 the business by the proprietor, fo' example, of a thousand dol- 
 lars, does not need to be put into Capital Account simply because 
 in the event of disaster overtaking the business the account of this 
 thousand dollars, located among the liabilities of the business, 
 would be ruled out. ' ' 
 
 In the case of failure the Capital Account is itself ruled out, 
 and in disaster various changes are made in the arrangement of the 
 accounts by the receiver or assignee that the bookkeeper would 
 not think of introducing while the business is a going enterprise. 
 
 Let us, then, look at the facts of the case as they are with the 
 business considered as an entity, apart from the proprietor. The 
 proprietor holds the business responsible to himself for all the 
 money he puts into it. He recognizes that in the event of failure 
 he will not get anything back, whether on loan account or capital, 
 until the other or general creditors are paid in full. Notwith- 
 standing this he regards one portion of the money he supplies to 
 the business as a permanent investment and another portion as a 
 temporary accommodation only. It is quite as right, then, that 
 the accounts should be kept in a way to agree with his reasonable 
 views in this regard as that they should be kept in a way to pro- 
 vide the classification which auditors and the courts very properly 
 insist upon when the business is no longer a going concern, but 
 instead is a wreck to be broken up and the parts distributed as the 
 
 .U«MtW«J»»»»^l"~ 
 
 II 
 
iir -nn'r-rrf -"''■** 
 
 m. 
 
 •0 
 
 THE SELF PROVING 
 
 inicres.f'5 of creVitors inay appear. 
 
 Where there are several partners in the business it is recom- 
 m-ndc.l that their inchvi(htal contrilnitiuiis of capital be arranged 
 and adjusted l)y their partnership agreement, and th'it the total 
 amount, whatever it may be and irrespective of tbe fact some- 
 time? prevaihng that the contributions arc unec|ual in amount, be 
 pooled ui one sum, and that this sum be entered to the credit of 
 the CapitM Account as the capital of th.: business. Let this ■ 
 amount remaui as a fixed quantity until it is varied by a settlement 
 between partners or by a modification of their articles of agree- 
 ment. Open an account with each individual partner for amounts 
 withdrawn by him, all as set forth in the preceding paragraphs, off- 
 setting these withdrawals from time to time by cre*li» ^ on account 
 of salary or by shares of the profits. Where one of the partners 
 makes a temporary loan to the bu; iicis, open an account with him, 
 placing it among the accounts of the regular creditors of the con- 
 cern, or, as is preferred in some cases, give him the farm's note for 
 the amount, thus letting the liability appear in Notes Payable 
 
 Account. 
 
 The reasons which prevail in the minds of some bookkeepers 
 against opening among the accounts showing liabilities of the 
 business an account with the proprietor for moneys temporarily 
 loaned the concern would not prevail, of course, where there are 
 several partners and only one of them extends an accommodation. 
 In such a case, in the event of disaster, this partner's special con- 
 tribution to the business stands in diflferent relationship thereto, 
 at least so far as the partners themselves are concerned, from that 
 of his original contribution to the fixed capital of the firm. 
 
 Difficulties in partnership settlements, and the accounting 
 complications that arise in the books of enterprises in which two 
 or more persons are interested, would be entirely avoided if proper 
 care were taken in the first place to define the relationship that is 
 

 is recom- 
 arranged 
 the total 
 ict sonie- 
 noi^nt, be 
 : credit of 
 
 Let this • 
 lettlement 
 of agree- 
 r amounts 
 raphs, off- 
 )n account 
 e partners 
 ; with him, 
 Df the con- 
 I's note for 
 ;s Payable 
 
 jokkeepers 
 ties of the 
 emporarily 
 e there are 
 imodation. 
 ipecial con- 
 lip thereto, 
 1, from that 
 rm. 
 
 accounting 
 
 which two 
 
 ed if proper 
 
 iship that is 
 
 ■scssiBKsssiiwaiW 
 
 
 J 
 
-1^ aL'tAa> Ml-Jti^^.-'.y.'^S^- 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 1.0 
 
 1.1 
 
 ■^ ■18 |2.5 
 
 us 
 
 I" 
 
 2.2 
 
 Mm 
 
 — '""-= 11^ 
 
 <■ 
 
 ■73 
 
 
 ^'^^" 
 
 'V 
 
 ^ 
 
 L 
 
 Photographic 
 
 Sciences 
 
 Corporation 
 
 ■y 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. MS80 
 
 (716)872-4503 
 
CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICMH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical IVIicroreproductions / Institut Canadian de microreproductions historiques 
 
 - . _'||||"l_;i|PiiPl!i^' 
 
ACCOUNTING SYSTEM 
 
 m 
 
 k 
 
 to exist between the men in the partnership, and if the accounts 
 were kept with the capital invested in the business and the amounts 
 withdrawn upon the principles here laid down. 
 
 In the Self-Proving Accounting System the account called 
 Dividends and Divisions, which is more fully explained on another 
 page in this volume, shows as often as Loss and Gain Account is 
 balanced the net profits of the business to date. If the proprietor 
 or partners are credited from time to time with a salary allowance, 
 the same being charged up as one of the expenses of doing busi- 
 ness, then the balance in this account will show the net profits 
 ready to pass to the credit of the Proprietor's Account or Part- 
 ners' Accounts, as the case may be, to oflfset special drafts. If no 
 salary allowance has been charged up, then the balance in Divi- 
 dends and Divisions Account will be proportionately larger, but 
 still in shape to be transferred in whole or in part to the credit of 
 the proprietor's account or partners' accounts, as the case may be, 
 to offset their drafts. Credits to the partners' accounts in this 
 form, or transfers from the Dividends and Divisions Account, it 
 will be seen, can be made as frequently as may be desired. By 
 using the facilities which this account provides the bookkeeper 
 should have no difficulty in keeping the proprietor's account or 
 partners' accounts, as the case may be, in such a condition as to be 
 entirely satisfactory to them in view of the actual progress of the 
 business, and yet avoid the complications in settlements which 
 often arise in such cases. 
 
 ; 
 
 ! / 
 
 11, • 
 
 '^Jp-f^.tif '*( *" ' 
 
^v 
 
 
 mwmt'.mw 
 
PART II 
 
 THE SELF-PROVING 
 
 ACCOUNT BOOKS 
 
 n 
 
I 
 
CONSTRUCTION OF THE BOOKS 
 The principal books used with the Self-ProvinB Accounting 
 System are special in construction and make use of new features 
 fn blank book work. They are composed of wide and narrow 
 eav« arranged in sets, with the parts of the wide leaves project- 
 ng b yond L narrow leaves, thickened or reinforced so as to 
 omp nsate for the thickness of the narrow leaves^ By th.s con- 
 Tction an even surface for writing is furnished wherever th 
 book may be opened, and at the same .,me ----- 
 monthly spaces or other vertical divisions of the pages are 
 Tough in contact with a single writing of the names of accoun^^ 
 The pages of the several books are for the most part ruled 
 with fifty lines to the page. The lines are numbered, and the 
 Tages are also numbered. By a combination of the page number 
 'ead with a line number a reference is not only possible, but very 
 convenient to any part of any page. =.„ p..„vin» 
 
 The Self-Proving Mercantile Ledger and the Self-Provmg 
 Instalment Ledger, both of which are illustrated by mnu^ure 
 fac-similies, are provided with reference mdexes. consisting of 
 numerals representing the page numbers printed marginally on 
 the pages, in combination with tags so placed on successive 
 leaves that by Hfting the tag opposite the number of a required 
 page the book will be opened to that page. This ,s the case 
 whether the book be opened from the front toward the back or 
 from the back toward the front. . . , i,. 
 
 The novel features of construction embodied m the books 
 
 iC-J 
 
00 
 
 TIIK SELF ril(>VIX(} 
 
 used with the Self-Proving Accounting System are fully covered 
 l)v patents. The design and arrangement of the individual pages 
 in the different books have been protected by copyrights, and 
 the term "Self-Proving," which is used in connection wit i the 
 system, also as a part of the name of each of the books, has been 
 secured to the Self-Proving Account Book Company both by 
 copyright and under the cc5mmon law with respect to trade marks. 
 
 THE SELF-PROVING INSTALMENT LFDQER, OPEN. (COPYRIGHT 1897 BY J F. BROWN 
 
 AND A. O KITTREDQE) 
 
 The first of the accompanying illustrations shows one of the 
 ledgers of the Self-Proving Accounting System open in the mid- 
 dle and displaying the wide and narrow leaves, together with the 
 ruling of the pages and the marginally printed index figures and 
 their complement of tags. It also indicates how each signature, 
 composed of a pair of wide leaves, thickened or reinforced in that 
 portion of their width projecting beyond the narrow leaves, to- 
 
 iiTiririiitir'r"- 
 
'I'^tl'Tif'^" l" 1^*11" 
 
 lly covered 
 idual pages 
 rights, and 
 n wit!i the > 
 s. has been 
 ly both by 
 •ade marks. 
 
 J F. BROWN 
 
 s one of the 
 in the mid- 
 ler with the 
 figures and 
 h signature, 
 reed in that 
 / leaves, to- 
 
 ACCnr.NTINC SYSTEM 
 
 l»7 
 
 gether with their complement of narrow leaves, forms a section of 
 the book of even thickness, so as to present a flat writing surface 
 
 at all points. 
 
 The second illustration shows the constructi.m of the same 
 book from another point of view, and perhaps still better dlus- 
 
 B.CK V.W O. S..-PB0V.3 .ST.^.M..T -«- -™^ -" ^ ^^ ^^ ^^^ 
 
 trates the relationship of the wide and narrow leaves and the 
 thickened margins of the wide leaves, arranged to compensate for 
 
 / 
 
"'" " I' T^ 1 ~^^" 
 
 J)S 
 
 THE SELl'-rKOVlNG 
 
 .,„ increased thickness of the book caused by the presence o. the 
 
 ""TtfsII^Provin, Accounting Systen, is not a secret sy.en, 
 „o. is it supplied to business ntcn under t^t— - - ' 
 
 -:;rrir::rr:an"isattic,eso. 
 
 ^ranCpln wHch ate necessat. - Jts '— nt an 
 
 eeonotnica, ^--^:^".zT::zz:x ::: ^-^^o. 
 :::=r^."vrt,,e,o.s.pt.esc™s^^^^ 
 
 as to discourage competition and to make piracy 
 
 ^^^^Cs:;:^ Account BooU company does not restrict 
 ; tn the special books described herem, nor to 
 
 Lde to ordT ttpon the most reasonable terms. 
 
 9 * 
 
«»■ 
 
 jiiMii'lii'f'"'* 
 
 ■II ■irriTiM *i< 
 
 ;sence of the 
 
 :cret system, 
 , nor yet is a 
 i features are 
 us articles of 
 nvenient and i 
 are described 
 he Self-Prov- ^ 
 )nsistent with 
 eclared poUcy 
 : prices so low 
 and imitation 
 
 es not restrict 
 herein, nor to 
 ; in addition is 
 nd methods of 
 other purposes 
 •eferred to can 
 meet the ideas 
 siness men are 
 
 PRIX- VIE LEDGER AND PERPETUAL BALANCE 
 
 SHEET 
 
 The principal book in the Self-Proving Accounting System 
 is the Private Ledger, which may be described as a condensed 
 summarv, in tabular form, of all the transactions of the busmess, 
 so arranged as to constitute a perpetual balance shee of tl^ 
 business. It is constructed like various other books of the Self- 
 Proving Accounting System, with narrow and wide pages, with 
 those portions of the wide pages which project beyond the nar- 
 row pages thickened or reinforced in a way to compensate or the 
 increased thickness of book caused by the narrow pages, tjnts af- 
 fording a level writing surface at all times. The various accounts 
 are arranged in cohunnar form in the narrow pages m such a way 
 that bv turning the narrow pages they are brought successively 
 agains't the names of accounts or dates that are written on the firs 
 ^^lle page. The rtdings of faint lines (horizontal divisions) are 
 numbered both on the wide pages and on the narrow pages, thus 
 facilitating the extension of amounts opposite a given date oi 
 name of account through the several account columns on the 
 
 narrow pages. , , 
 
 The Private Ledger is opened by entering m tlte several ac- 
 count columns provided for the purpose the balances represent- 
 ing the business. It is maintained by posting to .t, day by day, 
 ,^.eek by «eek or month by month, as may be preferred, a sum- 
 mary statement of the transactions of the business so classified 
 and arranged as to correspond «.ith the balance sheet prmople 
 upon which principle the book is started. 
 
 I 
 
_ THK SELFPKOVINO 
 
 The Private Lolgcr and Balance Sheet provides within ,.- 
 self the tneans for eross entries hetvveen certan, acconnts, t^hus 
 1 ^^^ it ,»s.ihie to show the gross profits in Sehn.g and o.he, 
 : r aca,u„.s. with proper halances to he transferred u, U, . 
 an.l Ciain aeeount. Uy sin,i,ar eross entry the 1-i™ "^^ 
 Unsiness are hkewise earried to Loss and Can, A on t Uu 
 showing in that aeconnt net profits or net losses In n n, Lo . 
 „d Gal Aceonnt. where a profit is tnade, .s dose -"- ^ ; 
 dends and Divisions. The latter aeeonn reeords ; ' -'^ - 
 tions of profits among partners and stoekholders W he. a loss 
 made he Loss and Gain Aeeonnt eloses into Impa.rn.en and 
 Bnr 1 Account. The latter account records, on the one han^ 
 ^In loss of a hnsiness, where it has been done at a loss, or the 
 acarulated surplus, where profits have heen made and a part or 
 -,11 allowed to remain in the busmess. 
 
 Z Private Ledger and Perpetual Balance Sheet starts ,n 
 ,„„„« There are posted to it, front time to ti,ne, the totals o. 
 !r ^sac.ions for a day or other period, which are also ,n bal- 
 ': Cfl the accuracy of the Private Ledger „,a^. he 
 1 n, anv time by ordinary trial balance methods. Proof 
 rrl rep— fL this purpose. All of the other booUs in 
 h eTtem are auxiliary to the Private Ledger a,,d Balance 
 S eefand a number of them are posting medium^, to ,t. n t h, 
 ^. however, various sets of books wotdd *«« ».th a^ 
 other because the conditions surrounding the use of the Pnvate 
 Ledger are sufficiently elastic to admit of numerous n,od,fiea- 
 
 "°" xLttStr- example, of the accounts that are posted to 
 
i* i.] > ' i aiim»** ' J W " i f i< ^ 
 
 In 
 
 ides within it- 
 iccouiits, thus 
 linji and other 
 fcrrcd to Loss 
 enscs of Doing 
 Account, thus 
 
 In turn, Loss 
 3scd into Divi- 
 Is the distril)U- 
 
 Whcrc a loss 
 mpairnient and 
 n the one hand, 
 at a loss, or the 
 le and a part or 
 
 Sheet starts in 
 rne, the totals of 
 1 are also in bal- 
 Ledger may be 
 nethods. Proof 
 le other books in 
 rer and Balance 
 ns to it. In this 
 
 differ with each 
 ise of the Private 
 merous modifica- 
 
 hat are posted to 
 ment Ledger Ac- 
 y be derived from 
 tained by columns 
 Tis through which 
 
 \rr(»tNTI.N<J SYSTBM 
 
 101 
 
 the accou.its are carried to the Instalment Le.lger. The same 
 principle applies with respect to Sundry Debtors. Sundry Cred- 
 itors. Purchase Accovmts. Expense Accou.Us and all the other 
 
 groups or classes. 
 
 The immediate means of posting the Private Ledger and 
 Balance Sheet may be a special report of the trat.sactions of the 
 business on a blank provided for the purpose, or a book convem- 
 eutlv arranged for the same may be employed, or the transactions 
 may be summarized on the face of the Cash Journal, elsewhere de- 
 scribed in this volume, and the footings of the columns earned to 
 the proper accounts in the Private Ledger. 
 
 None of the other books of the system in itself will be m 
 balance, nor will all the auxiliary books taken together be m bal- 
 ance, for the opening balances are entered in the Private Ledger 
 only, but each auxiliary book, when correct, will be tn balance 
 with the corresponding accout in the Private Ledger. 
 
 Inasmuch as at the beginning the balances in the accounts 
 representing the business are entered in the Private Ledger, and 
 t^owhere else, then the accounts, to whatever degree extended m 
 the other or auxiUary books, will only represent the transactions 
 of the period for which they are conducted. This may be illus- 
 trated by referring to the Cash Account. At the commencement 
 the balance of cash on hand is entered in the Private Ledger m 
 the debit column of the pair entitled Cash. In the Cash Book m 
 the general office there is recorded simply the transactions of the 
 day or other period. There are show., simply so much receipts 
 and so much disbursements. The report, therefore, is stmp y a 
 footing of the cash columns for the day or other period, which 
 amounts are posted to the Private Ledger. 
 
 This feature of the book and method of management fully 
 justifies the name "Private Ledger," for in a single book, as it 
 will be perceived, there are contained all the secrets of the busi- 
 
 dMiMiaiMaiMMa 
 
f. 
 
 lOli 
 
 THE SELF-rROVlNG 
 
 !l 
 
 i !; 
 
 ness, and to this book there are posted, day by day or otlier con- 
 venient period, a summarized statement of the transactions of the 
 business. In turn the Private Ledger, without reference to any 
 other parts of the system, provides within itself the opportunity 
 of making the cro3S entries previously referred to, thereby declar- 
 ing the profits or losses of the business. And all this is done in 
 the privacy of the proprietor's office or at the desk of his confi- 
 dential man. The general or auxiliary books of the system, 
 therefore, become simply days' records, conducted in a way to 
 facilitate summarizing for the purpose of posting to the Private 
 Ledger. 
 
 With the object of closely scrutinizing the progress of a 
 business, it is recommended that the Private Ledger be posted 
 daily and that the bookkeeper be directed to furnish for it at the 
 close of each day's business a summarized statement from the 
 several auxiliary books in his charge, including amount of Sales, 
 Cash Receipts and Cash Disbursements, Transactions with the 
 Bank, amount of Purchases, Notes Receivable and Notes Paya- 
 ble, together with the totals of the amounts posted to each of the 
 several divisional ledgers. From time to time— not less fre- 
 quently than once a month, and in many lines of business it is 
 advantageously done weekly— it is recommended that cross en- 
 tries be made in the Private Ledger in the manner hereafter de- 
 scribed, and as illustrated in the miniature fac-simile book pre- 
 sented herewith. Constantly Iceeping before the business man 
 the actual results of the transactions upon which he is engaged 
 is the acme of the service which accounts can render. 
 
 The reasons for the extended and very carefully prepared di- 
 rections with reference to classification of accounts, to which a 
 number of pages in this book are devoted, become apparent when 
 the balance sheet feature of the Private Ledger is considered. 
 For the purpose of making the reader familiar with the methods 
 
 I iiiiiliiOWiM 
 
■ -^j^rf g^.^.^-^-«^.^ ^ r«iii<iiftiiiW-"-w.»^""''"''''-»^''*~ 
 
 or other con- 
 lactions of the 
 erence to any 
 e opportunity 
 hereby declar- 
 this is done in 
 k of his confi- 
 •f the system, 
 d in a way to 
 to the Private 
 
 ACCOUNTING SYSTEM 
 
 108 
 
 o, using the Private Ledger and Bdance S'-t some ust a , 
 are shown on the fac-shnile pages presented herewth. A th 
 le .he Private Ledger is opened the business ,s represented by 
 a balance sheet as follows:— 
 
 progress of a 
 Iger be posted 
 sh for it at the 
 nent from the 
 lount of Sales, 
 tions with the 
 d Notes Paya- 
 l to each of the 
 —not less fre- 
 f business it is 
 
 that cross en- 
 :r hereafter de- 
 mile book pre- 
 t business man 
 I he is engaged 
 ler. 
 
 illy prepared di- 
 nts, to which a 
 ; apparent 'vhen 
 r is considered, 
 ith the methods 
 
 
 , mw » <g " , W '»jw^ffjggjHai 
 
 ■Mti'^ 
 
^r 
 
 Km /m i T 
 
 KM 
 
 THE SELF-PROVING 
 
 . ; i; 
 
 iiil 
 
 RESOURCES : 
 
 lOO.OO 
 
 Cash 
 
 Bank 2'50o.oo 
 
 Manufacturing i , 500.00 
 
 Buying 10,500.00 
 
 Instalment Ledger 35. 500 00 
 
 Sundry Debtors 3,500.00 
 
 Notes Receivable 2,675.00 
 
 Investments : 
 Necessary : 
 
 Mfg. Plant 2,500.00 
 
 Store Fixtures 1,650.00 
 
 Office Furniture (14,700.00) 550.00 
 
 Speculative ; 
 
 Real Estate 10,000.00 
 
 U. S. Bonds (|i5,200.oo) 5,200.00 
 
 19,900.00 
 
 LIABILITIES : 
 
 Purchase Accounts 
 
 Sundry Creditors 
 
 Notes Payable 
 
 Reserve Funds : 
 Collections : 
 
 For Bad Debts 500.00 
 
 For Rebates and Allow- 
 ances 175.00 
 
 Investments : 
 
 For Depreciation of Mfg. 
 
 Plant 125.00 
 
 For Depreciation of Store 
 
 Fixtures 82.50 
 
 For Depreciation of Office 
 » Furniture 27.50 
 
 Impairment and Surplus. 
 Capital 
 
 3,50000 
 1,850.00 
 2,500.00 
 
 910.00 
 1,000.00 
 
 66,415.00 
 
 $76,175.00 $76,175.00 
 
 BAUkNCE SHEET OF THE BUSINESS AT THE TiME THE PRIVATE LEDGER IS OPENED. 
 
 I, 
 
1 
 
 
 M 
 
 INIATURE FACSIMILE 
 
 OF THE 
 
 SELF-PROVING 
 
 PRIVATE LEDGER and 
 
 PERPETUAL BALANCE 
 
 SHEET 
 
 3,50000 
 1,850.00 
 2,500.00 
 
 910.00 
 1,000.00 
 
 66,41500 
 
 10 $76,175.00 
 
 iQER IS Opened. 
 
 (SEE PAGE 99) 
 
 COPVFIGHT 1897 
 
 BV A. O. KlTT««UG« 
 
 ^/ii 
 
i:«' 
 
 
 V -Ji 
 
 I 
 
 i 
 
 
 i: '1' 
 t i(- 
 
 i i 
 
 ' i 
 
 i- 
 
 m 
 
 iir ■ 
 
 I. 
 
 
 rORMUUC 
 
 No. 
 
 
 D«t* 
 
 Explanation* and Partleular* 
 
 '*"?? 
 
 
 
 Hmountt Brought Fonmtd 
 
 /j(Xu/./n 
 
 (oaJU\AAjtx^ 
 
 o 
 
 (Zt Aa^ ^^ccccca. f^uj (0 i^- cUCc 
 
 iT 
 
 
 1 
 
 if 
 
 1 
 
 8 
 
 
 
 
 » 
 
 
 
 
 4 
 
 
 
 » 
 
 
 oA^/r 
 
 /tLfU-r-A 
 
 • 
 
 I^JHt4ll{JuAjLn» iUAA/lf^^t/tA.tu%^ J? /yTm/iif/'^'^A 
 
 T^r 
 
 i^ 
 
 7 
 
 ' 1 
 
 
 
 « 
 
 
 
 
 • 
 
 
 
 
 10 
 
 
 
 
 11 
 
 
 
 
 IS 
 
 io-v c-n-iv^ /LtiA ll rtjtJr ilJ/ (laAJ' AMA-eU. 
 
 
 
 13 
 
 ^^ ^.MM^ M^^ rA^., <74^ ^ ^A^ 
 
 
 1/ \j 
 
 14 
 
 
 
 
 IS 
 
 
 
 
 16 
 
 
 ( 
 
 ^oMjlAq ULuj^fWtL^ 
 
 IT 
 
 Ltn- OA^^^-,*. //i»t,0^tA) 0-t\. CiA*-/* A-O-ZJ/ 
 
 
 \ <\. 1 
 
 111 
 
 ^ -^^-r^^ ^^^U^^ ^ ^r^ ^; 
 
 
 
 1» 
 
 
 
 
 20 
 
 
 
 
 91 
 
 
 
 ■-^ /9 / jC* 
 
 82 
 
 
 
 tfA4 1> t/eu*i t GyJttui 
 
 B3 
 
 jLrV tU^kjUAAXJ* S) (>-UAAAA£JtA)j Ci C^-tJZ 
 
 
 
 94 
 
 
 
 
 9S 
 
 
 
 
 90 
 
 
 
 
 97 
 
 
 
 ^ f) £\ 
 
 88 
 
 
 (, 
 
 MJtf^aiut ^iu^JuJt 
 
 8ff 
 
 lir-f yuU AAOpM Ia iLJZ 
 
 
 1 
 
 w 
 
 l\ 1 IT 
 
 
 
 ■11 
 
 
 
 
 99 
 
 
 
 
 S3 
 
 
 
 
 iM 
 
 LirY An^hCtA <U.Ahaju\ It h-vLnAjAA^ 
 
 
 1 
 
 38 
 
 D ill ^^ / 
 
 
 
 
 
 ■fo-o-iZtuy^ 
 
 AT ^ aa0j^...J^ ^^4/ cuvL. oLs^^ 1 
 
 
 
 38 / 1 
 
 
 /-v 
 
 99 
 
 ^ 
 
 
 1?iaJlcoiLU^ 
 
 10 
 
 lL^ HcX. (y^oi. ojeetf-MWa f^^^T^^o^ (yuJuuxtui CmiULtu 
 
 
 
 41 
 
 ' V 
 
 * 
 
 
 48 
 
 
 
 
 49 
 
 1 
 
 
 
 44 
 
 1 
 
 
 
 4S 
 
 
 
 
 40 
 
 
 
 
 4T 
 
 
 
 
 48 
 
 
 
 
 «« 
 
 
 _ 1 — L ^movntt OirmdJ-tnnn I M 
 
 ^\\, 
 

 
 • 
 
 
 
 
 
 I 
 
 
 
 t 
 
 
 
 
 
 
 AeoQuntt with Cath • ^ 
 
 
 
 
 
 
 
 
 
 DRAWER AND SAFE | 
 
 ■ANK 
 
 I 
 
 •Ul 
 ■•h 
 
 •ne* 
 
 
 ■rs 
 
 II Mcuvn 1 9U 
 
 • OUT Ml 
 
 UMI MP 
 
 OOTID HITIIWMini 1 UIMM 1 
 
 No. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■d^ 
 
 
 i 
 
 tii~ ... 
 
 
 . . ..I 
 
 i'ie- ... 
 
 
 
 
 
 
 
 
 1 1 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 a 
 
 
 
 a_ 
 
 
 
 
 
 
 
 
 .1 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 4 
 
 
 
 n 
 
 
 
 
 
 
 
 
 « 
 
 
 
 <i I 
 
 iliii L 
 
 Qi i Si 
 
 
 iiia ' 
 
 {«I07 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 /■"■ 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 » 
 
 
 
 
 
 
 
 
 11 
 
 
 
 10 .. 
 
 
 
 
 
 
 
 
 [0 
 
 
 
 II 
 
 
 
 
 
 
 
 
 II 
 
 iJy f^jOJ-Ajiie^. 
 
 
 12 
 
 
 
 
 
 
 
 
 IS 
 
 / 
 
 
 i;i 
 
 
 
 
 
 
 
 
 13 
 
 
 
 If 
 
 
 
 
 
 
 
 
 14 
 
 
 
 1.1 
 
 
 
 
 
 
 
 
 in 
 
 
 
 10 
 
 
 
 
 
 
 
 
 i« 
 
 ^ A^ 
 
 
 IT 
 
 
 
 
 
 
 
 
 IT 
 
 ^) 
 
 
 IM 
 
 
 
 
 
 
 
 
 18 
 
 
 
 10 
 
 
 
 
 
 
 
 
 l» 
 
 
 
 20 
 
 
 
 
 
 
 
 
 N) 
 
 
 
 31 
 
 
 
 
 
 
 
 
 ai 
 
 
 
 aa 
 
 
 
 
 
 
 
 
 as 
 
 a oUd: 
 
 
 23 
 
 
 
 
 
 
 
 
 83 
 
 
 
 24 
 
 
 
 
 
 
 
 
 a* 
 
 
 
 2a 
 
 
 
 
 
 
 
 
 a« 
 
 
 
 20 
 
 
 
 
 
 
 
 
 a« 
 
 
 
 27 
 
 
 
 
 
 
 
 
 aT 
 
 
 
 28 
 
 
 
 
 
 
 
 
 as 
 
 
 
 if 
 
 
 
 
 
 
 
 
 a» 
 
 
 
 »0 
 
 
 
 
 
 
 
 
 to 
 
 
 
 ifl 
 
 
 
 
 
 
 
 
 31 
 
 
 
 .1!} 
 
 
 
 
 
 
 
 
 sa 
 
 
 
 33 
 
 
 
 
 
 
 
 
 38 
 
 it^M 
 
 
 ;<4 
 
 
 
 
 
 
 
 
 34 
 
 
 ja 
 
 1 
 
 
 
 
 
 
 
 38 
 
 r 
 
 I'M) 
 
 1 
 
 
 
 
 
 
 
 38 
 
 i^aj; 
 
 .17 
 
 1 
 
 
 
 
 
 
 
 3T 
 
 
 34 
 
 1 
 
 
 
 
 
 
 
 38 
 
 
 
 39 
 
 1 
 
 
 
 
 
 
 
 80 
 
 in^y Cnu^piu^ anJJz./^^ 
 
 
 40| 
 
 1 
 
 
 iilAA 
 
 
 I 
 
 i<lc it. 
 
 
 40 
 
 iJ 
 
 
 41 1 
 
 1 
 
 
 
 
 
 
 
 '41 
 
 1 
 
 42 
 
 II 
 
 
 
 
 
 
 
 43 
 
 
 
 43! 
 
 II 
 
 
 
 
 
 
 
 48 
 
 
 
 44 
 
 
 
 
 
 
 
 
 44 
 
 
 
 4s| 
 
 
 
 
 
 
 
 
 48 
 
 
 
 4«| 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 47 1 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 1 
 
 "^^ 
 
 
 
 
 
 
 
 
 
 
 j ^Yima * am mmsm^aniSkW^^^t^ 
 
 r 
 
 •3 
 
 fcy 
 
 sal 
 
 87 
 
 88 
 
 10 
 
 «3 
 
 •5. 
 
 47_ 
 M 
 
 Wi.7>,UTT« 1X5010 
 
 1 
 
 No, 
 
 REMARKS 
 
 1 
 
 /Imounts Brought Forward 
 
 
 
 
 1 
 
 
 .? 
 
 
 3 
 
 
 .4 
 
 
 .» 
 
 
 . 
 
 
 7 
 
 
 8 
 
 
 ,9 
 
 
 
 
 
 It 
 
 
 13 
 
 
 13 
 
 
 14 
 
 
 in 
 
 
 »• 
 
 
 IT 
 
 
 18 
 
 
 19 
 
 
 10 
 
 
 II 
 
 
 18 
 
 » 
 
 t3 
 
 
 t4 
 
 
 ■a 
 
 
 •0 
 
 
 tT 
 
 
 •8 
 
 
 t* 
 
 
 10 
 
 
 pt 
 
 
 88 
 
 
 Amounit Carmd Fonmrd 
 
 i 
 
 f .T t\ y\tm * i >Ay> *i M 
 

 
 rORMUUC 
 
 No. 
 
 
 Aeeounts 
 
 
 1 
 
 
 MANUrACTURINO i 
 
 Dau 
 
 No.! 
 
 Cl. 
 
 WUWI 
 
 coin raoeucT 
 
 •UUKi 
 
 '*"?? 
 
 
 
 T 
 
 
 
 OIJClI.io ISaJLc\A^J^JLi 
 
 
 
 
 
 ..L 
 
 All - _ 
 
 
 T^ 
 
 1 
 
 1 
 
 
 
 
 
 
 4 
 
 a 
 
 
 
 
 
 
 !» 
 
 3 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 s 
 
 S 
 
 
 
 
 oLiLn 
 
 /tUu^W- 
 
 A 
 
 • 
 
 
 Ztfl- _ 
 
 
 T^{ 
 
 T^ 
 
 T 
 
 7 
 
 
 
 
 
 
 ■ 
 
 • 
 
 
 
 
 
 
 « 
 
 9 
 
 
 
 
 
 
 10 
 
 10 
 
 
 
 
 
 -^ 
 
 11 
 
 11 
 
 
 
 
 
 
 ifl 
 
 IB 
 
 
 "■"it 
 
 
 
 
 13 
 
 IS 
 
 
 
 
 
 ^ U \J 
 
 14 
 
 «« _.. 
 
 
 
 
 
 
 lA 
 
 Ifl 
 
 
 
 
 
 
 le 
 
 1« 
 
 
 
 
 1 
 
 ^oSljjia IZl iuih *^iL^ 
 
 17 
 
 17 
 
 
 
 
 
 1 «v / 
 
 18 
 
 la 
 
 
 
 
 
 
 19 
 
 la 
 
 
 
 
 
 
 20 
 
 ac "I 
 
 
 
 
 
 
 ai 
 
 91 
 
 
 
 
 
 -^ /) j C" 
 
 as 
 
 aa 
 
 
 
 
 
 nJJt,i kfci^ U 6V^«i' 
 
 as 
 
 aa 
 
 
 
 
 
 . 7 /^ 
 
 a4 
 
 84 
 
 
 
 
 
 
 as 
 
 98 
 
 
 
 
 
 
 ae 
 
 a« 
 
 
 
 
 
 
 aT 
 
 87 
 
 
 
 
 
 ^ D IS 
 
 as 
 
 88 
 
 
 
 
 I 
 
 rtJ if ^fl^u 6" /%J>uJl 
 
 t9 
 
 aa 
 
 
 
 
 
 ' 7 
 
 30 
 
 30 
 
 
 
 
 
 
 ai 
 
 SI 
 
 
 
 
 
 
 aa 
 
 aa 
 
 
 
 
 
 
 33 
 
 aa 
 
 
 
 
 , 
 
 \\,,jkj. /.- LitJ^ 
 
 3i 
 
 84 
 
 
 
 
 
 r 
 
 3< 
 
 1 ^ 
 
 
 
 
 
 
 8« 
 
 8« 
 
 
 
 
 
 To-oAXmoa 
 
 9T 
 
 81 
 
 
 
 
 1 ' ' 
 
 88 
 
 38 
 
 
 
 
 L 
 
 .39 
 
 SI 
 
 
 
 
 
 inaJlaAAjUjb 
 
 40 
 
 4C 
 
 
 
 1 '[ttl — 
 
 
 I 
 
 41 
 
 41 
 
 
 
 
 
 
 Ai. 
 
 4S 1 
 
 
 
 
 
 
 43. 
 
 4f 1 
 
 
 
 
 
 ■ 
 
 44 
 
 4( 
 
 
 
 
 
 
 40 
 
 4J 
 
 
 
 
 
 
 40 
 
 4« 
 
 
 
 
 
 
 47 
 
 « 
 
 
 
 
 
 
 48 
 
 41 
 
 
 
 
 
 
 M 
 
 41 
 
 
 ■"■ " 
 
 
 
 
 
 ^ 1 
 
 .1- 
 
 
 
 cL. 
 
Aeeeunta 
 
 MANUFACTURINO 
 
 nooucT uiawt 
 
 TT 
 
 1 
 
 1 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 1 
 
 1 
 
 1 
 
 
 - -;;":it:""" 
 
 t::;- 
 
 
 
 """ " 
 
 
 
 
 
 
 
 
 — / ifl<i— 
 
 i.ftt 
 
 
 
 dt-.::: :;■"" 
 
 
 
 
 
 
 
 with MarehandiM ] 
 
 
 
 1 
 
 ■UVINO 1 
 
 
 
 
 .J. . . . 
 
 u 
 
 laui riiiu 
 
 ^ib..c. ,,'Sfi 
 
 (»"»« 
 
 UM 
 
 No. 
 
 
 
 
 
 
 
 
 
 fl 
 
 
 
 lii 
 
 He- ... 
 
 
 
 o 
 
 1 
 
 
 
 
 
 
 
 1 
 
 a 
 
 
 
 
 
 
 
 a 
 
 !l 
 
 
 
 
 
 
 
 3 
 
 1 
 
 
 
 
 
 
 
 4 
 
 J 
 
 
 
 
 
 
 
 a 
 
 6 
 
 
 
 
 ^Leii. 
 
 
 
 « 
 
 7 
 
 
 
 
 
 
 
 7 
 
 8 
 
 
 
 
 
 
 
 • 
 
 U 
 
 
 
 
 
 
 
 w 
 
 IC 
 
 
 
 
 
 
 
 10 
 
 ,, 
 
 
 
 
 
 
 
 11 
 
 ii 
 
 
 
 
 
 Lm2 
 
 
 la 
 
 l:l 
 
 
 
 
 
 "Jlf^- 
 
 
 la 
 
 U 
 
 
 
 
 
 
 
 14 
 
 u 
 
 
 
 
 
 
 
 IS 
 
 Ifl 
 
 
 
 
 
 
 
 i« 
 
 IT 
 
 
 
 
 
 
 
 17 
 
 IN 
 
 
 
 
 
 
 
 la 
 
 IB 
 
 
 
 
 
 
 
 i« 
 
 2€ 
 
 
 
 
 
 
 
 20 
 
 !il 
 
 
 
 
 
 
 
 *i 
 
 as 
 
 
 
 
 
 ... 
 
 
 aa 
 
 20 
 
 
 
 
 
 
 
 aa 
 
 2* 
 
 
 
 
 
 
 
 a4 
 
 a« 
 
 
 
 
 
 
 
 as 
 
 a« 
 
 
 
 
 
 
 a« 
 
 27 
 
 
 
 
 
 
 27 
 
 8N 
 
 
 
 
 
 
 aa 
 
 an 
 
 
 
 
 
 
 w 
 
 3(1 
 
 
 
 
 
 
 30 
 
 ni 
 
 
 
 
 
 
 31 
 
 :<4 
 
 
 
 
 
 
 32 
 
 
 
 
 
 1 
 
 
 33 
 
 
 
 
 
 1 
 
 
 34 
 
 a« 
 
 
 
 
 1 
 
 
 |ss 
 
 
 
 1 
 
 
 ' 
 
 
 Usa 
 
 .17 
 
 
 1 
 
 
 
 
 |37 
 
 
 
 1 
 
 
 
 
 1 ^* 
 
 3f 
 
 
 
 
 
 
 |39 
 
 « 
 
 
 
 
 
 i.c 
 
 ^^cjJ-tO 
 
 41 
 
 
 
 
 
 
 
 41 
 
 «s 
 
 
 
 
 
 
 
 4a 
 
 « 
 
 
 
 
 
 
 
 43 
 
 -id 
 
 
 
 
 
 
 
 44 
 
 «J 
 
 
 
 
 
 
 
 4S 
 
 *< 
 
 
 
 
 
 
 
 4« 
 
 « 
 
 
 
 
 
 
 
 4T 
 
 « 
 
 
 
 
 
 
 
 4a 
 
 
 
 
 
 
 
 
 4* 
 
 
 
 
 
 
 
 
 
 Be I 
 
 fiL. 
 
 lO 
 
 *o 
 
 «8 
 4» 
 
 KMAnucKmi 
 
 1 
 
 No. 
 
 
 
 Amountt Brought Forward 
 
 
 
 
 1 
 
 
 .2 
 
 
 .'1 
 
 
 .4 
 
 
 .n 
 
 
 a 
 
 
 7 
 
 
 .a 
 
 
 .0 
 
 
 
 
 
 .•« 
 
 
 12 
 
 
 13 
 
 
 (4 
 
 
 l» 
 
 
 f» 
 
 
 17 
 
 
 lA 
 
 
 19 
 
 
 10 
 
 
 tl 
 
 
 la 
 
 > 
 
 19 
 
 
 14 
 
 
 ■0 
 
 
 (O 
 
 
 a7 
 
 
 aa 
 
 
 ^ 
 
 
 10 
 
 
 r> 
 
 
 aa 
 
 
 33 
 
 
 f* 
 
 
 SA 
 
 
 Amounts Camul Forward 
 
 i 
 
 I 
 
 . i» ., 1 1. 1 i ll i i a m- 'Ju^M 
 
MHVAnuaan 
 
 ■AjLMOM 
 
 •^■"^ 
 
 rORMUUK No 
 
 Aeeeunu with Merehandli* (£•"'""•*< *~ 
 
 ^ 
 
 
 SCLLINa 
 
 
 
 Data 
 
 . H. "iriwiRf.- Ju. 
 
 ULAIKI 
 
 Cr 
 
 UIHCI 
 
 
 /r^j 
 
 
 
 
 
 
 
 OJfjuLia 
 
 /9a£tt.vteA^ 
 
 - « 
 
 
 
 
 
 i 
 
 1 
 
 1 
 
 
 
 
 
 
 a 
 
 a 
 
 
 
 
 
 
 H .11 III 
 
 
 
 
 
 
 * 
 
 L 4 
 
 
 
 
 
 
 a 
 
 - 5 
 
 
 
 
 
 <4^n 
 
 f^A.^^ 
 
 « ^0<7i' 1 21Z<i 
 
 1^ 
 
 
 
 
 T^( 
 
 1 1 
 
 1 U|0 L ^i i^ 
 
 
 
 
 
 
 » 
 
 ._ 
 
 
 
 
 
 
 « 
 
 L 
 
 
 
 
 
 
 ic 
 
 L 10 
 
 
 
 
 
 
 
 - II 
 
 
 
 
 
 
 pMU44.g IZ /3ii4iLi^ _U 
 
 
 
 
 
 
 
 '' U J " 
 
 L .3 - 'Iff 
 
 
 
 
 
 
 v/ V „ 
 
 L 14 
 
 
 
 
 
 
 II 
 
 L IS 
 
 
 
 
 
 
 » r-/» — 7^— - 
 
 L 10 
 
 
 
 
 
 { 
 
 C)MjL^UI.^Mt-iftU 1 
 
 -IT ktiO-i 
 
 
 
 
 
 
 » '^ / 1 
 
 L iH -11 —'- 
 
 
 
 
 
 
 1 
 
 !. i» 
 
 
 
 
 
 
 iM 
 
 I 20 
 
 
 
 
 
 
 a 
 
 L ai 
 
 
 
 
 
 
 .-C /).,. > rP; ' 
 
 L aa 
 
 
 
 
 
 & 
 
 0^^ if yiu** U ^Am « 
 
 L as 
 
 
 
 
 
 
 f / » 
 
 — a4 
 
 
 
 
 
 
 a 
 
 ^ as 
 
 
 
 
 
 
 a 
 
 5- ao 
 
 
 
 
 
 
 a 
 
 L aT 
 
 
 
 
 
 
 <2 /9 ■ ft'/l / - 
 
 — a« 
 
 
 
 
 
 _fl 
 
 »1J » yoii fr X^umJW* a 
 
 fi- ao 
 
 
 
 
 
 
 - / * 
 
 QL30 
 
 
 
 
 
 
 a 
 
 ^_sx 
 
 
 
 
 
 
 a 
 
 i sa 
 
 
 
 
 
 
 HI It / — A — <v f "^ 
 
 a^ 83 
 
 
 
 
 
 
 WfUU 1* Ut'-^k ^ 
 
 1*- .-14 
 
 
 
 
 
 
 / 
 
 t 3S 
 
 
 
 
 
 
 — n — = -* 
 
 0- 3e 
 
 
 
 
 
 
 7o-iyiZ*,M t 
 
 '^ 3T y liafli / 1 >}«« 
 
 
 
 
 
 
 • 
 
 S- 3« '^ 
 
 1 
 
 
 
 
 
 /©-T ' 
 
 f^^i 
 
 
 
 
 
 
 \r all ciJuuLLb A 
 
 fi-4fl " 
 
 
 
 
 
 
 * 
 
 U-41 1 
 
 
 
 
 
 
 i 
 
 a- 4a 
 
 
 
 
 
 
 1 
 
 »a.4a 
 
 
 
 
 
 
 II 
 
 S^44 
 
 
 
 
 
 
 
 *^3: - 
 
 
 
 
 
 
 
 «^«- — 
 
 
 
 
 
 
 
 *L«T 
 
 
 
 
 
 
 
 *i4. 
 
 
 
 
 
 
 
 tt4. 
 
 
 
 
 
 
 
 -J " ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 pi 
 
Aeoounta with Dabter* 
 
 INmTALMCNT LCDOCR 
 
 ? 
 
 ? 
 
 J^ 
 
 liifi:ii 
 
 SUNDRV OCBTORS 
 
 2^iBC 
 
 bii'h 
 
 uiix 
 
 U 
 
 No. 
 
 o 
 
 -o 
 
 "- J_ 
 
 ""•J. 
 
 - Jl_ 
 
 "-._4_ 
 
 "■ JL 
 ~- j_ 
 
 "-. a 
 
 10 
 
 11 
 
 18 
 
 14 
 
 IS 
 
 ta 
 
 IT 
 
 la 
 
 B0"W 
 
 ■,i_i_ 
 
 u 
 12. 
 
 IT_ 
 
 \± 
 !0 
 
 •i^ 
 
 !IiL 
 
 •» 
 
 >4 
 
 an 
 
 •8 
 
 la 
 
 !0 
 
 ■1 
 
 la 
 
 !•« 
 
 |ao 
 
 •T 
 
 81 
 
 -Bl 
 
 8« 
 
 SL 
 
 a« 
 
 •37 
 
 l*« 
 
 -10 
 
 4a 
 
 <«S»*IS»re!S^!S*S#4*»S***»9 
 
 - ' ^uawiwiv 
 
 fucn 
 
 fICMANKS 
 
 /Imountt Brought Forward 
 
 Mmottni* Camid rorwant 
 
 mmK: 
 
 »t>i , l n i "rii l S»VT :#ti ii n.Hj ' 1 
 
 I! 
 
 i' 
 
 .M 
 
Dal* 
 
 rORMULC 
 
 11^ 
 
 QJuitl 
 
 OJuvlLiq 
 
 ofJ^j 
 
 (oaSj^.\^jejj) 
 
 Acoounts with Dabtori ictmmnj) 
 
 NOTC* RECCIVAaLC 
 
 mCllVIB riRTIDWIlM ItLANCI 
 
 Sj^^^ 
 
 n 
 
 10 
 
 ^iLZaJm. 
 
 
 ^elliiiia (j/^Al^ 
 
 20 
 
 .^Cl- 
 
 ^jtiJuL 
 
 ygJiK fc Gy AjUt, »3. 
 
 <a- 
 
 f JIJ » fc/g^M k BwJL jf 
 
 ^^IMUlXMu 
 
 ^ 
 
 1 yo-o-lXMa 
 
 &z 
 
 g^-^-c^ 
 
 1(1 
 
 in 
 
 11 
 
 i» 
 
 at 
 
 JtO. 
 
 3& 
 
 ai 
 
 Jl£ 
 
 2& 
 
 ia 
 
 ■_ aB| 
 
 ■_ aal 
 
 ■_ 87 
 
 _ an 
 _ a9 
 j 30 
 
 '_j 31 
 
 J sa 
 
 J 83 
 
 J »i 
 
 _! 38 
 
 j_8a 
 
 _! 37 
 _j »g 
 _j 30 
 
 4^ 
 
 4 41 
 
 4 «a 
 
 J_43 
 J_44 
 
 J_48 
 J_4« 
 J_*7 
 4 4» 
 4 40 
 
 iC 
 
 ii& 
 
 jy^ 
 
 ^1'' 
 
 T«UI 
 
 ■•ImM (f 
 
 0*ktara 
 
 ■ 
 
 SS»««ndtiA>«KUas<B» 
 
MMmpBB 
 
 TaUl 
 
 ■■■■ii(« (f 
 
 Otktora 
 
 
 
 
 
 -* • Aoeeu 
 
 ntt with Invtttmant* 
 
 
 
 NIOIMARV 
 
 •MCULATIVI 
 
 T*UI 
 
 
 Of r.t 
 •OWNT UtO •! 
 
 ••. C' 
 IMCI MIMHI lOlO UlUCI 
 
 Invtttmanti „ ■■< 
 
 
 L.. — 
 
 
 <) 
 
 
 O li ; 1 1 - 
 
 iiltl ~ 
 
 o , 
 
 
 _i"^ 1 
 
 
 • JL 
 
 
 jl . _ _ 
 
 
 • ■( 
 
 
 u 
 
 
 » 4 
 
 
 _1 . ,., , , , 
 
 
 •* 1 
 
 
 „ s 
 
 
 »... « 
 
 
 / 1 i - 
 
 itei- 
 
 - - • T 
 
 
 _,"::.! 
 
 
 » , tt 
 
 
 « 
 
 
 -»_'o 
 
 
 i> 
 
 
 •,,10 
 
 
 10 
 
 
 »« TT 
 
 
 u 
 
 
 •» 19 
 
 
 19 
 
 
 •• •» 
 
 
 i;i 
 
 
 "...M 
 
 
 i« 1 
 
 
 1* 1.1 
 
 
 IS 
 
 
 »« «l 
 
 
 »0 
 
 
 l« „ 
 
 
 IT 
 
 
 " I* 
 
 
 T.. 
 
 
 i» lO 
 
 
 Ill 
 
 
 •» !0 
 
 
 20 
 
 
 w> « 
 
 " 
 
 SI 
 
 
 ■ 1 aa 
 
 
 93 
 
 
 .. ^ 
 
 
 99 i 
 
 T 
 
 as a4 
 
 
 94 1 
 
 T 
 
 •♦ 9« 
 
 
 an 1 
 
 
 »» ao 
 
 
 90 1 
 
 
 M aT 
 
 
 8T 1 
 
 
 »» 9» 
 
 
 8H 
 
 
 ■• 99 
 
 
 J£U 
 
 
 •• .10 
 
 
 »n 
 
 
 »o 3, 
 
 
 ai 
 
 
 »» :ig 
 
 
 aa . . 
 
 
 ■• m 
 
 
 »» 1 
 
 
 »a »4 
 
 
 
 
 
 
 
 
 *» n* 
 
 
 nfl 1 
 
 
 M ■„ 
 
 
 if' ' i 
 
 
 
 
 38 
 
 
 «"..!« 
 
 
 as 
 
 
 ao -if 
 
 
 40 1 .<< 
 
 iia~ Liiii 
 
 «> 7 
 
 
 *i 
 
 
 *» 4 
 
 J 
 
 18 
 
 
 *« ^.l 
 
 .43 
 
 
 *a "... 
 
 i4 _. _ 
 
 
 ** 4 
 
 (I 
 
 u . . . 
 
 
 *» ♦ 
 
 D 
 
 
 
 «• 4 
 
 T 
 
 4T 
 
 
 " 4 
 
 B 
 
 
 
 « 4 
 
 9 
 
 
 
 4» i" 
 
 
 
 
 X- 
 
 
 
 
 , * 
 
 »»»■«. • ^-,**;i»««*« 
 
 rtjTri=- -Jl ^igriuM lg^J j ^ ^y, , 
 
 
 I 
 
 4 
 
 L- 
 
PMWTIIMflBI 
 
 uuaSmmn 
 
 D*<* 
 
 rOMMUUC 
 
 No. 
 
 ft'/ J 
 
 
 
 (jJuiiki 10 
 
 ltaJi£\,\\jtxi 
 
 n 
 
 
 
 1, 
 
 
 
 a 
 
 
 
 If 
 
 
 
 
 
 
 A 
 
 oLl.n 
 
 /liJur-W' 
 
 , 
 
 T^ { 
 
 1^ 
 
 J 
 
 
 
 # 
 
 
 
 9 
 
 
 
 1« 
 
 
 
 II 
 
 
 
 la 
 
 
 ^ () \ 
 
 la 
 
 
 U \J 
 
 14 
 
 
 
 in 
 
 
 
 i« 
 
 < 
 
 '^ollili^ l^lttilkf^fkn 
 
 IT 
 
 
 
 IM 
 
 
 
 l« 
 
 
 
 IM) - 
 
 
 
 ai 
 
 
 -i> D i C^ 
 
 aa " 
 
 
 (kL« i WoMK U G^Amo^ 
 
 aa " 
 
 
 ' ( r^ 
 
 a4 ~ 
 
 
 
 as ~ 
 
 
 
 aa ~ 
 
 
 
 at ~ 
 
 
 ^ f) jfi 
 
 s« ~ 
 
 c 
 
 9±h t ^bJua k ^^uiiSuJt 
 
 aa ~ 
 
 
 - 7 
 
 W~ 
 
 
 
 ai 
 
 
 
 w" 
 
 
 
 9a ~ 
 
 
 \\,tAkj. (^ i.i>>:^,t 
 
 1t~ 
 
 
 / 
 
 aa~ 
 
 
 
 fW~ 
 
 "fo-tt^XvKO^ 
 
 B7 ~ 
 
 
 aa" 
 
 
 
 9»~ 
 
 
 naJIcijuMUi 
 
 M>1 
 
 
 
 4 
 
 41 ~ 
 
 ' 
 
 
 4i~ 
 
 
 
 4(»'" 
 
 
 
 44 ~ 
 
 
 
 4«- 
 
 
 
 4 
 40— 
 
 
 
 ' 4 
 47 ~ 
 
 
 
 4 
 4»— 
 
 
 
 4 
 
 
 
 — 
 
 
 
 
 
 
 
 ^^^ 
 
 
 
 
 
 PUNCHAtC ACCOUNTS 
 
 
 
 J i. " 
 
 
 .ti^m, 1 
 
 ■uancl 
 
 ' 1 
 
 Cf. 
 
 ■ HMCI 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 ibc: - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - • -I 
 
 lU$i 
 
 _-t 
 
 -Saii- 
 
 
 
 
 
 
 
 
 
 
 rr 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ la 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _' 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _' IB 
 
 
 
 
 
 
 
 
 
 
 
 
 _' IT 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 _' la 
 
 
 
 
 
 
 
 
 
 
 
 
 _J la 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 J? SMI 
 
 
 
 
 
 
 
 
 
 
 
 
 J! "1 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 _? •• 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 Ji aa 
 
 
 
 
 
 
 
 
 
 
 
 
 _i a4 
 
 
 
 
 
 
 
 
 
 
 
 
 Ji ■» 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 Ji •• 
 
 
 
 
 
 
 
 
 
 
 
 
 _i! aT 
 
 
 
 
 
 
 
 
 
 
 
 
 J! aa 
 
 
 
 
 
 
 
 
 
 
 
 
 -!j aa 
 
 
 
 
 
 
 
 
 
 
 
 
 J* 30 
 
 
 
 
 
 
 
 
 
 
 
 
 _!' ai 
 
 
 
 
 
 
 
 
 
 
 
 
 _i' aa 
 
 
 
 
 
 
 
 
 
 
 
 
 _3 aa 
 
 
 
 
 
 
 
 
 
 
 
 
 _i! a4 
 
 
 
 
 
 
 
 
 
 
 
 
 _i< !l« 
 
 
 
 
 
 
 
 
 
 
 
 
 _9 JMl 
 
 
 
 
 
 
 
 
 
 
 
 
 _a 3T 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 _2 ilH 
 
 
 
 
 
 
 
 
 
 
 
 
 _3 an 
 
 
 
 
 
 
 
 
 
 
 
 
 il 4(1 
 
 
 
 
 1 ,5 
 
 tii^ 
 
 
 
 
 
 
 _i 41 T 
 
 
 
 
 
 
 
 
 
 
 
 -1 4a 
 
 
 
 
 
 
 , 
 
 
 
 
 
 _* 4a 
 
 
 
 
 
 
 
 
 
 
 
 
 _* 44 
 
 
 
 
 
 
 
 
 
 
 
 
 _i 4fl 
 
 
 
 
 
 
 
 
 
 
 
 
 _* 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 _1 *1 
 
 
 
 
 
 
 
 
 
 
 
 JH 4« 
 
 
 
 
 
 
 
 
 
 
 
 _* 411 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
it 
 
 I 
 
 
 
 Data 
 
 FORMULC 
 
 i 
 
 No. 
 
 /i-fj 1 
 
 
 ^jJutUin 
 
 f6aJic\^<Ajzju 
 
 
 
 T^ 
 
 
 1 
 
 
 a 
 
 
 3 
 
 
 1 
 
 
 
 
 S 
 
 OJLuI/j 
 
 /tUur-r^ 
 
 e 
 
 T^f 
 
 1^ 
 
 T 
 
 
 
 « 
 
 
 
 9 
 
 
 
 lO 
 
 
 -^ 
 
 11 
 
 
 
 la 
 
 
 
 13 ■ 
 
 
 " U \J 
 
 14 ' 
 
 
 
 1« ' 
 
 
 ,«-k .^^ /^ 
 
 10 ■ 
 
 i^Milic U I^Ai-f^tJu. 
 
 IT 
 
 
 1 '"^ / 
 
 lt» ■ 
 
 
 
 1» ' 
 
 
 
 20- 
 
 
 
 21 ■ 
 
 
 -r^ /^ ('^ 
 
 22 ' 
 
 (y tyU, i ^a^ t Qa^Amm 
 
 23" 
 
 
 / / 
 
 24 ~ 
 
 
 
 as" 
 
 
 
 26' 
 
 
 
 27" 
 
 
 1^ n n 
 
 28" 
 
 ( 
 
 (rti 1^ yL* fr /S^tkJi 
 
 8»" 
 
 
 
 W" 
 
 
 
 31" 
 
 
 l3.- 
 
 
 
 3S" 
 
 
 ^•.t^<b[ /a- lit^L 
 
 3«~ 
 
 
 
 i»" 
 
 
 
 3*" 
 
 
 ^tvu'lvM^va 
 
 »?" 
 
 
 
 3»' 
 
 
 /-v 
 
 39- 
 
 
 |^?fai'a«A,«^ 
 
 lo- 
 
 
 
 4l' 
 
 
 
 «' 
 
 
 
 ¥f 
 
 
 
 44' 
 
 
 
 4*- 
 
 
 
 4ir 
 
 
 
 ♦T" 
 
 
 
 ♦^ 
 
 
 
 ,tf' 
 
 1 
 
 « 
 
 No. 
 
 
 
 D.a^.u 
 
 • c. 
 
 
 
 
 ^" 
 
 
 
 
 
 FOR INVESTMENT ACCOUNTS 
 
 FOR DEBTORS ACCOUNTS | 
 
 
 0,. II c II 
 TMWfin.tic. II Mum II uunu 
 
 "■ 1 
 
 TRUSriRI. ITC, 1 III 
 
 • inn 
 
 ULMMC 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (1 
 
 
 
 22£ - 
 
 
 
 
 i;3- 
 
 
 
 1 
 
 
 
 
 
 
 
 VT^--- 
 
 
 
 a 
 
 
 
 
 
 
 
 
 
 
 i 
 
 
 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 
 
 
 
 « 
 
 
 
 
 
 
 
 
 
 
 fl 
 
 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 
 g 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 12 
 
 
 
 
 
 
 
 
 
 
 la 
 
 
 
 
 
 
 
 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 111 
 
 
 
 
 
 
 
 
 
 
 1« 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 la 
 
 
 
 
 
 
 
 
 
 
 IB 
 
 
 
 
 
 
 
 
 
 
 20 
 
 ' 
 
 
 
 
 
 
 
 
 
 21 
 
 
 
 
 
 
 
 
 
 
 22 
 
 
 
 
 
 
 
 
 
 
 23 
 
 
 
 
 
 
 
 
 
 
 24 
 
 
 
 
 
 
 
 
 
 
 as 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 27 
 
 
 
 
 
 
 
 
 
 
 28 
 
 
 
 
 
 
 
 
 
 
 29 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 81 
 
 
 
 
 
 
 
 
 
 
 82 
 
 
 1 
 
 1 
 
 
 
 
 
 
 
 S3 
 
 
 1 
 
 1 
 
 
 
 
 
 
 
 34 
 
 
 1 
 
 1 
 
 
 
 
 
 
 
 sa 
 
 
 1 
 
 
 
 
 
 
 
 
 86 
 
 
 1 
 
 ' 
 
 
 
 
 
 
 
 37 
 
 
 
 
 
 
 
 
 
 
 88 
 
 
 
 
 
 
 
 
 
 
 89 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 iii'- 
 
 
 
 Ui- -.. 
 
 'f^' 
 
 
 41 
 
 
 
 
 
 
 
 1 
 
 
 
 42 
 
 
 ... __. 
 
 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 
 
 
 
 44 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 46 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 "H 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 1 
 

 
 
 KKKMttjnaBa 
 
 
 • ' — >- ^ 
 
 -^ 
 
 — Result* of Trantaetlont ' >- | 
 
 No. i 
 
 REMARKS 
 
 
 >R DESrORS ACCOUNTS 
 
 ft. 
 
 
 EXPENSE ACCOUNTS 1 
 
 LOSSES AND GAINS 1 
 
 
 m 
 
 CUIMO COMICTIOKa \ UlUH | uiiiu! 
 
 0,. 
 
 OF OOINO ...,, 
 t 4 iOIMt «■"»> 
 
 PIOFITI 11 
 
 LHCI 
 
 ...ii^ 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 Amounts Brought Forward 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 ..izi- 
 
 1 
 
 
 
 1 
 
 
 
 
 
 
 
 1 _ 
 
 
 ■ ---'7' ■ 
 
 a 
 
 
 
 a 
 
 
 
 
 
 
 
 2 - 
 
 
 
 3 
 
 
 
 3 
 
 
 
 
 
 
 
 3 _ 
 
 
 
 4 
 
 
 
 
 
 
 
 
 
 
 4 _ 
 
 
 
 s 
 
 
 
 
 
 
 
 8 _ 
 
 n 
 
 
 
 
 
 
 
 L *» _.. 
 
 J-liU -- 
 
 u /c> 
 
 
 
 
 
 « _ 
 
 
 
 7 
 
 
 
 T 
 
 '^ff- 
 
 
 
 
 
 
 7 _ 
 
 
 
 8 
 
 
 
 8 
 
 
 
 
 
 
 
 8 _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » _ 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 10 > 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 11 
 
 II 
 
 
 
 la 
 
 
 
 12 
 
 
 
 
 
 • 
 
 
 12 
 
 
 
 13 
 
 
 
 13 
 
 
 
 
 
 
 
 13 
 
 
 
 14 
 
 
 
 14 
 
 
 
 
 
 
 
 14 
 
 
 
 in 
 
 
 
 IS 
 
 
 
 
 
 
 
 in 
 
 
 
 10 
 
 
 
 10 
 
 
 
 
 
 
 
 10 
 
 
 
 IT 
 
 
 
 IT 
 
 
 
 
 
 hiiJC -- 
 
 
 17 
 
 
 
 18 
 
 
 
 18 
 
 
 
 
 
 ' 1 
 
 
 18 
 
 
 
 10 
 
 
 
 10 
 
 
 
 
 
 
 
 10 
 
 
 
 JO 
 
 
 
 20 
 
 
 
 
 
 
 - - _ - ^^ 
 
 
 
 ai 
 
 
 
 ai 
 
 
 
 
 
 
 3t 
 
 
 
 22 
 
 
 
 aa 
 
 
 
 
 
 
 22 
 
 
 
 23 
 
 
 
 a3 
 
 
 liChl 
 
 
 LlcLi -- 
 
 
 23 
 
 
 
 24 
 
 
 
 84 
 
 
 
 
 
 
 
 24 
 
 
 
 28 
 
 
 
 as 
 
 
 
 
 
 
 
 as 
 
 
 
 20 
 
 
 
 26 
 
 
 
 
 
 
 
 28 
 
 
 
 27 
 
 
 
 27 
 
 
 
 
 
 
 
 27 
 
 
 
 88 
 
 
 
 28 
 
 
 
 
 
 
 
 28 
 
 
 
 
 20 
 
 
 
 
 iiT-'^y .. 
 
 1 
 
 
 20 
 
 30 
 
 
 
 
 
 30 
 
 
 
 
 / 
 
 
 
 30 
 
 tO 
 
 
 
 
 31 
 
 38 
 
 
 
 31 
 
 
 1 
 
 
 
 
 
 31 
 
 
 
 
 
 33 
 
 
 
 
 
 
 
 32 
 
 
 
 
 
 
 33 
 
 
 
 
 
 -._ ... 
 
 
 33 
 
 
 
 
 34 
 
 
 
 
 
 
 
 34 
 
 34_ 
 
 
 
 3B 
 
 
 
 
 
 
 
 3S 
 
 36 
 
 
 
 3« 
 
 
 
 
 
 
 
 30 
 
 
 
 
 1 
 
 
 37 
 
 LliJl 
 
 1 lilT'i 
 
 
 
 y:Um--- 
 
 
 37 
 
 
 B 
 
 
 
 38 •" 
 
 1 
 
 
 
 
 :::i 
 
 It '"* 
 
 30 
 
 
 
 30 
 
 
 
 
 
 
 
 30 
 
 
 
 40 
 
 1 
 
 
 40 
 
 
 
 
 
 
 
 40 
 
 
 i J 1 ■_ ^ f t~ 
 
 41 II 
 
 1 
 
 41 
 
 
 
 
 
 
 
 41 
 
 42 
 
 
 
 
 42 
 
 
 
 
 
 
 
 42 
 
 
 
 
 43 
 
 
 
 
 
 
 
 43 
 
 44 
 
 
 
 44 
 
 
 
 
 
 
 
 44 
 
 45 
 
 
 
 4S 
 
 
 
 
 
 
 
 4-> 
 
 40 
 
 
 
 40 
 
 
 
 
 
 
 
 40 
 
 47 
 
 
 
 47 
 
 
 
 
 
 
 
 47 
 
 48 
 
 
 
 48 
 
 
 
 
 
 
 
 48 
 
 
 
 
 =^" = 
 
 
 
 
 
 
 
 
 40 
 
 
 
 ■■- "B""'" 
 
 
 
 
 
 
 *— 
 
 
 
 
 
 
 
 
 
 
 
 ! ■ 
 
 
 _ -1 
 ■J 
 
 J 
 
 1 
 
 — j;,THjsj(,-!.;^,^=;j.-aipB^>r3£^,.-t*vT .-..-i--t^r«^si^ti;(t-.^*eav^a« 
 
t ii 
 
 , 
 
 
 Data 
 
 rORMUUC 
 
 '-^ 
 
 /^ 
 
 /ol looJU^j^AJiju 
 
 ol^iLn 
 
 ^^ZZ^!2l 
 
 No. 
 
 o 
 
 o 
 
 - 1^ 
 
 - a 
 
 - 3 
 
 t^iJt-ir-'r^ 
 
 - H 
 
 
 
 Dlapeaal of PrefUt and Loaaaa 
 
 DIVIDENDS AND DIVISIONS 
 
 19 
 
 la 
 
 IS 
 
 - 13 
 
 IMPAIIIMCNT AND SURPLUS 
 
 Or. 
 MIIMI 
 
 UimomMD mm* 
 
 ii 
 
 o 
 
 t_ 
 
 a_ 
 
 3_ 
 
 4_ 
 
 « 
 
 T: 
 
 8_ 
 
 
 
 10 
 11 
 12 
 1.1 
 14 
 IS 
 -1« 
 17 
 18 
 10 
 20 
 
 ai 
 aa 
 
 83 
 
 a4 
 as 
 
 30 
 37 
 
 38 
 
 18 ' 
 
 ^^''"i ^'J^- *-Q'^ 
 
 IT 
 
 1* 
 
 iJO 20 
 
 .iJEi- 
 
 Ua^k QyJ ^ 
 
 aa ' 
 
 ^JtUi± 
 
 83 33 
 
 a* «* 
 
 B« • «» 
 
 ai 87 
 
 <Si. 
 
 b h^^^JiUi 
 
 38 «• 
 
 ■: 
 
 6£Ut^l>m 
 
 ] \'MtAw. it LjuSii ju^ji 
 
 3a.. 
 
 m 
 
 ai 
 
 38 ' 8* 
 
 ^ 
 
 SS'' M 
 
 80 
 
 30 
 
 31 
 38 
 33 
 
 azii^ 
 
 34 
 3g 
 36 
 37 
 38 
 30 
 40 
 41 
 
 ♦a 
 
 43 
 44 
 
 *B 
 
 _*a 
 
 47 
 
 a&'Ji 
 
 y'o-iyiXMC 
 
 &l 
 
 (MfJAA 
 
 
 _3g''_S« 
 
 40« 
 JUJI 
 
 ^ 43 
 
 _4«f 44 
 
 _4r 4; 
 
 Ll^- 
 

 
 K.KS!Txtjataa 
 
 
 — ;~~I 
 
 
 
 * • Capital »- 
 
 proof Columns 
 
 Com 
 
 of 
 
 Oeo4lA BaIiI 
 
 No. 
 
 
 
 
 
 tMCNT AND SURPLUS | 
 
 REMARKS 
 
 UIIDniM 
 
 Cr. II II 
 
 pmrni || iiUMt g 
 
 wm 
 
 Dr. 
 <HMUt 
 
 
 Ct. 
 
 unit 
 
 an 
 
 
 uut 
 
 CI 
 
 D 
 Miff 
 
 Cr. 
 URCft lUIIUTin 
 
 
 
 
 
 1 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amounh Brought Forward 
 
 I 
 
 ( ( < — 1 
 
 1 
 
 
 
 
 
 
 
 
 
 iU 
 
 li- 
 
 
 
 
 7/, 
 
 ili- IL. 
 
 C)i- 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 T 
 
 r f 
 
 ' 
 
 
 
 
 
 
 1 
 
 
 
 
 
 9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a 
 
 
 j 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 a 
 
 
 
 
 
 
 
 
 
 
 
 
 (f 
 
 ffi J /t/ 1 y 
 
 ihlJd. 
 
 
 
 1 
 
 Id 
 
 a 
 
 at 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 'if'^ 
 
 n 
 
 ^ff-^ 
 
 
 
 T 
 
 1 
 
 1 
 
 7 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ::: nn 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 D 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 la 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 13 
 
 
 
 
 
 in 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 13 
 
 
 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 14 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Iff 
 
 
 
 
 
 
 -la 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 16 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 m 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 1 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 SI 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 31 
 
 « 
 
 
 
 
 
 as 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 33 
 
 
 
 1 
 
 
 
 as 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 33 
 
 
 
 1 
 
 
 
 t4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 34 
 
 
 
 1 
 
 
 
 8S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 38 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 36 
 
 
 
 
 
 
 a7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 37 
 
 
 
 
 
 
 38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 38 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 10 
 
 
 
 
 
 
 31 
 
 
 
 
 
 i 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 31 
 
 
 
 
 
 
 :I9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 33 
 
 
 
 
 
 
 33 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 33 
 
 
 
 lll'^' 
 
 
 
 34 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 34 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3ff 
 
 
 
 
 
 
 36 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 36 
 
 
 
 
 
 
 37 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 37 
 
 
 
 
 
 
 38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 38 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 I 
 
 3211^ 
 
 
 40 
 
 
 
 
 
 
 -- 
 
 
 
 
 (4f 
 
 re- 
 
 'iS 
 
 •.ULL 2i. 
 
 TO"/^ 
 
 r 
 
 
 
 
 
 40 
 
 
 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 7 7 
 
 1 
 
 
 
 
 
 
 41 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4. 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 43 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 46 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T """ 
 
 
 
 
 
 
 
 Amouni9 Carried Forward 
 
 
 
 • 
 
 ■ 
 
 -^^fsesnex^s^ ...... — .-.^_^^fc3'3«»!-««.r'*i.i»«v<vi.- -.^..-- ^-v--.^ - ■-- .K^^j-HrtaMi 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
u.<^ 
 
 p 
 
 i\ 
 
 !) 
 
 ^-^•"^•— •- 
 
 ,««a^sii|nH| 
 
ACCOUNTING SYSTEM ' !<» 
 
 The transactions of a certain period, as summarized from the 
 various auxihary books, show as follows:— 
 
 I 
 
 Dr. 
 
 Cash... 'f •» 
 
 Bank ^-^^-S" 
 
 200 OO 
 
 Manufactunng 
 
 „ . 81028 
 
 Buying • 
 
 Selling (Tsoc, I699.92) 30.95 
 
 Instalment Ledger 1.102.34 
 
 Sundry Debtors ''♦'♦"^ 
 
 Notes Receivable 1,50000 
 
 , , ^ 150.00 
 
 Investments ■' 
 
 Purchase Accounts 2, 171. 93 
 
 Sundry Creditors ^^ '' 
 
 Notes Payable ''470^° 
 
 „ 129.72 
 
 Expenses ^ 
 
 ^9,897. 14 
 
 en. 
 
 1,044.90 
 1,802.07 
 
 1,223.94 
 707.63 
 
 42.35 
 
 200.00 
 
 2,000.00 
 
 1,173-81 
 
 65.68 
 
 1,627.66 
 
 9.10 
 
 $9.897. 14 
 
 SUMMARY OF THE TRANSACTIONS OF THE BUSINESS FOR A STATED PERIOD. 
 
 This summary, as above remarked, may be made up in the 
 form of a daily report on a specially prepared blank (to be signed 
 by the bookkeeper and delivered to the private office, or to the 
 manager's desk, or mailed to the proprietor's house, as the case 
 may be), or the various auxiliary books may be footed and their 
 accounts transferred to the Cash Journal and the daily report 
 formulated therein. However the amounts are determined and 
 prepared, the manner of their use is the same. The summarized 
 report here presented is more nearly of the form which the report 
 would take if made on a special blank, as above suggested. The 
 correctness of the report is proven by the footing, the bebits off- 
 setting the credits. 
 
 I 
 
 i 
 
i 
 
 . is f 
 
 -III 
 
 i 
 
 KM! 
 
 THE SELF-rROVIXG 
 
 The statement of transactions, or bookkeeper's report, for 
 the period used for these illustrations, has been so arranged as to 
 show results derived from different lines of business, the whole of 
 which, perhaps, would never occur in any one office in the interval 
 of time indicated. The report, therefore, is to be taken merely as 
 an illustration, and the entries as only suggestive, rather than as 
 being the exact counterpart of what is met in any given direction. 
 The entry of the same in the illustrative pages is also a little dif- 
 ferent from what would prevail in practice. The original balances 
 would occupy the first line of the book, the several daily or other 
 periodical reports the succeeding lines, and, finally, the cross en- 
 tries, line after line until completed. The book, in other words, 
 would be filled up solid. In the illustrations we have distributed 
 the lines of figures through the page in order to make them more 
 easily read. 
 
 A few words of explanation of the Summary of Transactions 
 for a Stated Period will help the bookkeeper to adapt any set of 
 books to the requirements of the Private Ledger. This summary 
 shows that cash has been received to the extent of $1,476.24, and 
 disbursed to the extent of $1,044.90. The bank account shows 
 that deposits have been made to the extent of $642.50, and checks 
 drawn to the amount of $1,802.07. There may or may not have 
 been cross entries between Cash and Bank. The form of the rul- 
 ing employed in the Private Ledger is such that Cash and Bank 
 Account may be kept separately or they may be consolidated, ac- 
 cording to the accountant's preference. 
 
 Manufacturing Account by the summary has been charged, 
 either Labor, Materials or Expenses, or part of each, to the ex- 
 tent of $200. Goods have been bought and charged to Buying 
 Account to the extent of $810.28. Th=se Figures come from the 
 Purchase Record. Sales according to the Sales Record have been 
 made to the extent of $1,223.94 (Tsoc, that is costirg $699.92), 
 
ACCOUNTING SYSTEM 
 
 JOT 
 
 report, for 
 inged as to 
 le whole o! 
 :he interval 
 n merely as 
 her than as 
 n direction, 
 a little dif- 
 lal balances 
 ily or other 
 lie cross en- 
 ither words, 
 ; distributed 
 ; them more 
 
 FraHsactions 
 3t any set of 
 his summary 
 1,476.24, and 
 count shows 
 ), and checks 
 lay not have 
 m of the rul- 
 .sh and Bank 
 solidated, ac- 
 
 )een charged, 
 h, to the ex- 
 ed to Buying 
 ome from the 
 ord have been 
 .irg IP699.92), 
 
 with goods returned, or other corrections made, to the extent of 
 $30 95. Acccounts in the Instalment Ledger have been charged 
 with $1,102.34, representing the amounts put out, and has been 
 credited with $707.63, representing collections made and other 
 
 credits. 
 
 Sundry Debtors have been charged with $144-63, and have 
 been credited with $42.35- The business has taken in Notes Re- 
 ceivable, as per Bills Receivable Record, to the extent of $1,500, 
 and has parted with paper of this kind to the extent of $200. In- 
 vestment Accounts have been charged with $150 (we wdl say, for 
 example, in the purchase of a new safe for the office, therefore to 
 the debit of a Necessary Investment Account), and have been 
 credited with $2,000 (for example, by the selling of a portion of 
 real estate, therefore to the credit of Speculative Investment Ac- 
 counts). It may be supposed that this real estate produced a 
 thousand dollars of the cash that has been received in this interval, 
 and also a thousand dollars of the Notes that have been taken m 
 during the time for which this summary stands. 
 
 Purchase Accounts are debited with $2,171.93, representmg 
 the amount that has been paid to creditors of this class, and in 
 turn have been credited with $i,i73-8i, being the total of goods 
 bought during the period, together with the amount of note 
 items, &c., if any. Sundry Creditors have been debited with 
 $67 75 and credited $65.68. Notes Payable, as per Bills Payable 
 Book, have been debited $1,470.80 and credited $1,627.66. Ex- 
 pense AccountsJ*ave been debited $129.72 and credited by way of 
 
 corrections, &c., $9.10. 
 
 All these amounts might have come from the ordinary col- 
 umnar journal. Each might have been obtained from an auxiliary 
 book, and the set of books to which this summary refers might 
 have been so conducted that a part of the amounts here enumerat- 
 ed would have come from the journal and a part from some of the 
 
^,,j, THE SELF-PKOVING 
 
 other auxiliary books. The requirements in the case are sitriply 
 that every entry by one channel or another shall reach .h,s da.ly 
 sutnmary, and from it be posted to the several accounts m the 
 
 Private Ledger. „ . . i .j„. 
 
 The cross entries which may be made m the Private Ledger 
 for the purpose of detennining the condition of the business at ^ , 
 a given time, and for which space is provided on the first broad 
 page, include the debiting of Selling Account, with the cost of he , 
 goods sold, passing the credit to Buying Accotmt. Th. .s th. 
 first cross entry shown in the sample presented herew.h. The 
 restdt of this entry is to leave in Buying Account a balance repre- 
 s nting the cost value of the goods on hand. It has the further 
 effect of leaving in Selling Account a balance which represents 
 the gross profits for the period. ,,..._ 
 
 The second cross entry to be made, therefore, .s deb.tmg 
 Selling Account with this balance, and crediting Loss and Gam 
 , Account with the same, with the result of closing Selhng Account 
 and putting the gross profits in Loss ar.d Gain Accovmt. 
 
 No business cleans up at the face of the accounts, and there 
 fore, where actual profits are to be declared in a gomg business 
 some allowance must be made for bad debts and for such ..ems as 
 rebates and allowances. In a manufacturing busmess .here .s also 
 the depreciation of manufacturing plant .0 be cons.dered, and m 
 a mercantile business the depreciation of store fixtures, whde .n 
 all lines of business .here is the depreciation of omce f.,rmture and 
 similar articles. What may be called the wear and tear of these 
 lis is an expense to the business, and as we ^^^^^^^^'^ 
 shown good accounting demands that expenses be kept up to 
 date a lu times. It is to be supposed, therefore, in the make-up 
 of the account produced by the journal and other records, wh.ch 
 have been summarised and entered in the Private Ledger, ha 
 in Expenses have been included, for example, a proper percentage 
 
 "^ n '^,-\i 
 
 jS TW i BW TBiwibiitfBW 
 
 MM 
 
ACCOUNTIXO SYSTEM 
 
 100 
 
 ; are simply 
 ;h this daily 
 Hints in the 
 
 vate Ledger 
 ; business at 
 e first broad 
 le cost of the 
 This is thv 
 rewith. The 
 alance repre- 
 .s the further 
 ch represents 
 
 e, is debiting 
 ,oss and Gain 
 Uing Account 
 Lint. 
 
 Its, and there- 
 oing business, 
 such items as 
 ss there is also 
 sidered, and in 
 tures, while in 
 e furniture and 
 d tear of these 
 lave elsewhere 
 be kept up to 
 in the make-up 
 records, which 
 :e Ledger, that 
 )per percentage 
 
 on in,..ln.e„. sales for bad debts, toucher with rebates and a 
 p o r percentage lor tbe period .or tbe depreeintu.n on the ,nan- 
 , Lrturlng plant, store fixtures, e.e., so tbat tbe tota expanse 
 tbe business are eorrectly represented in the balanee of Expense 
 Account Ledger, as shown. . * 
 
 The next cross entry to be made, then, is debitrng Loss and 
 Gain Account with the expenses of doing business to date, and 
 crediting the sar.c to Expense Account, thereby closmg Ex- 
 pense Account and showing by the balance in Loss and Gam Ac- 
 count the net profits to date. 
 
 Whatever actual losses have been made in the busmess dur- 
 ing the period, such as destruction of property, etc., would o 
 course be entered upon the principal books of the business and 
 come forward in the periodical report. Nothing of this kmd, 
 however, is shown in the example which we have presented En- 
 tries affecting the Reserve Funds would also be made &t the end 
 of the month. Therefore the next cross entry to be made m the 
 Private Ledger and Balance Sheet has only to do with the bal- 
 ance in the Loss and Gain Account as we find it. 
 
 We debit Loss and Gain Account with the balance and open 
 Dividends and Divisions. We will suppose, for the moment, 
 that the net profits of the business are to be allowed to accumu- 
 late in the account termed Impairment and Surplus. We there- 
 fore close Dividends and Divisions by another cross entry, which 
 transfers the amount to the credit of Impairment and Surplus 
 Account, which, as will be seen by the printed heading in the Pri- 
 vate Ledger, is entitled Undivided Profits. Here the amount 
 would stand until changed by the addition of other profits, or un- 
 til reduced by losses, or until, by formal action, incorporated 
 into the capital account. 
 
 If, instead of carrying all the profits to the credit of Impair- 
 ment and Surplus, a portion of them is to be distributed m divi- 
 
I I 
 
 no 
 
 TUE SELF-PROVIXO 
 
 (lends, or if a portion is to be transferred to the credit of the Pro- 
 prietor's Account, or to the credit of the accounts of the several 
 partners, then an entry would be made in the journal in regular 
 course, giving the proper accounts in the divisional ledgers the 
 stipulated credits, which amounts coming forward in the next 
 daily or other periodical summary of transactions would have the 
 effect of debiting Dividends and Divisions with the amount of 
 the transfer, thus leaving a smaller amount of net profits to be 
 carried to the Impairment and Surplus Account, in the way above 
 described. When the business is running at a loss, as various 
 lines of business will at certain seasons of the year, the loss made 
 will appear in the debit column of Impairment and Surplus. A 
 credit balance in Impairment and Surplus Account stands for an 
 accretion in the business, while a debit balance in that account 
 shows an impainnent of capital. 
 
 Finally, after all these cross entries have been made, those 
 accounts which balance should be closed by drawing footing 
 lines. The balances in the other accounts should be thrown out 
 into the balance columns provided for the purpose. There will 
 then be left in the Private Ledger a balance sheet of the business 
 at this date as follows: — 
 
 ^iaSSU 
 
of the Pro- 
 the several 
 .1 in regular 
 ledgers the 
 in the next 
 tld have the 
 amount of 
 rofits to be 
 e way above 
 , as various 
 e loss made 
 surplus. A 
 tands for an 
 liat account 
 
 made, those 
 ing footing 
 thrown out 
 There will 
 the business 
 
 **T 
 
 
 3,501.88 
 
 
 1.84793 
 
 
 3,656.86 
 
 
 335.00 
 
 
 675.00 
 
 
 1.372.45 
 
 
 66.415.00 
 
 175,704.1a 
 
 175,704.13 
 
 ACCOrXTlNO HYSTEM 
 
 RESOURCES: 
 
 Cash S3I.34 
 
 Hank "-J-JO^S 
 
 Manufacturing i,7"o.oo 
 
 Buying 10,610.36 
 
 Instalment Ledger 35.*')4.7« 
 
 Sundry Debtors 3,60228 
 
 Notes Receivable 3.'}75oo 
 
 Investments ; 
 
 Necessary 4.&5000 
 
 Speculative 13,200.00 
 
 LIABILITIES : 
 
 Purchase Accounts 
 
 Sundry Creditors 
 
 Notes Payable 
 
 Investments Reserve 
 
 Collections Reserve 
 
 Impairment and Surplus 
 
 Capital 
 
 Balance Sheet of the Business after making the Cross Entries. 
 
 The proof of the correctness of the work in the Private 
 Ledger is obtained by adding the debit balances together and the 
 credit balances together, as shown in the proof columns, just the 
 same as with an ordinary balance sheet. The Total Balance col- 
 umns shown in the sample pages may be used for purposes of 
 summary, at the option of the accountant. 
 
 The cross entries in the Private Ledger, as before remarked, 
 may be made at as frequent intervals as is desired, and if re- 
 quired they may be made at irregular intervals. With a proper- 
 classification of accounts maintained, and with everything kept 
 strictly up to date, the Private Ledger is always ready for the 
 cross entries here illustrated. 
 
 The advantage to the business man of having before him 
 such a thermometer of his business, showing the rise and fall of 
 
 I 
 
 mBom^mmmei 
 
in 
 
 »t 
 
 THB HKM'-I'HUVINO 
 
 T 
 
 his profit account, or such a haromcter pointing out the weather 
 conchtions ahead from time to time as the Private Ledj^er, are 
 too evident to rerpiire extended arj:;umcnt. The accuracy of re- 
 sults shown l)y the Private Ledger and Balance Sheet depend!* 
 alone upon the thorouj^hness with which the hookkeepini^ sys- 
 tem is planned and administered in the jjencral office. All the 
 secrets of the husincss, as it will l)e seen, are kept in the prnate j 
 office, and. further, the private ofVice is always in position to de- 
 termine the relative profitableness of the husincss heinn con- , 
 ducted without any assistance from the general ofTice force. At 
 the same time the private office is in most excellent position to 
 control the management of the general office. 
 
 Some of the minor advantages to be derived from the use of 
 the Private Ledger and Perpetual Balance Sheet may be enumer- 
 ated in this connection. Taken in conjunction with the daily 
 report, which furnishes the amounts to be posted to it. the Pri- 
 vate Ledger and Balance Sheet affords the proprietor or manag- 
 ing man the foundation of a definite demand upon the account- 
 ing department of the establishment for all the detaikd informa- 
 tion that may be required. Whatever is wanted, the demand for 
 it reaches the bookkeeper in a form to be understood and to 
 afford him a skeleton upon which to work. It also affords the 
 managing man a basis for checking the daily work of the book- 
 keeping department. An error cannot exist in any of the auxil- 
 iary books without its presence becoming manifest to the one in 
 charge c f the Private Ledger. The daily report will always indi- 
 cate th ' the accounts are or are not in balance, and therefore it 
 is equiv lent to a daily trial balance of all the books. At the 
 same time it is accomplished without any of the labor accompany- 
 ing the trial balance as usually taken. 
 
 The use of the Private Ledger also affords the bookkeeper 
 the opportunity of showing when his work is done and up to date. 
 
 4i^ 
 
 J 
 
the weather 
 Ledger, are 
 curacy of re- 
 lieet depends 
 :keepiiif;' sys- 
 ice. All the 
 n the private 
 )sition to de- 
 s heiii^ coii- 
 ce force. At 
 it position to 
 
 >m th* use of 
 y be enunier- 
 ith the daily 
 o it, the Pri- 
 or or manag- 
 
 the account- 
 likd informa- 
 e demand for 
 stood and to 
 .o affords the 
 
 of the book- 
 ' of the auxil- 
 to the one in 
 11 always indi- 
 id therefore it 
 loks. At the 
 >r accompany- 
 
 le bookkeeper 
 nd up to date. 
 
 ACCorXTINO SYSTEM 
 
 113 
 
 It takes him out of the rut in which his fellows have so long been 
 laboring, always with a pile of unfinished work ahead, and divides 
 Ws duties into well defined sections, each of which may be com- 
 pk ted by itself. A day's duties become definite, and when once 
 correctly performed leave nothing more to be demanded. The 
 Private Ledger further makes it impossible for the bookkeeper 
 to conceal even a small error in any of the auxiliary books or to 
 carry it along from week to week and month to month, in the 
 hope of being able to find it and correct it before discovery. By 
 the plan here outlined the private office knows of the error be- 
 fore the bookkeeper. Whatever error exists is instantly re- 
 vealed by comparison of the balance in the divisional ledger with 
 the balance in the corresponding account in the Private Ledger. 
 Under proper supervision, therefore, concealment is impossible. 
 At the same time facilities for locating the error are many 
 times greater than those supplied by the usual plans. The Pri- 
 vate Ledger affords the basis of checking the correctness of any 
 portion of the general books of the establishment without ex- 
 amination of any other part. It sectionalizes the bookkeeper's 
 work, so that, instead of having to climb the mountain of a trial 
 balance of all the accounts on the first day of every month, he 
 may prove up a few of the accounts at a time at intervals during 
 
 the month. 
 
 The daily report demanded of the bookkeeper gives him 
 a standard to which to work. In turn, it affords the business 
 man a standard by which to measure the bookkeeper's work and 
 to hold him to it. It is a happy measure for both, and consti- 
 tutes a bridge across the chasm of misunderstanding which so 
 often separates the bookkeeper from the man for whom he is 
 faithfully laboring. 
 
SELF -PROVING MERCANTILE LEDGER 
 
 The Self-Proving Mercanule Ledger is composed of alternate 
 wide and narrow leaves, with the wide leaves thickened or rein- 
 forced where they extend beyond the narrow leaves so as to cause 
 the pages of the book to lie flat under all circumstances. This 
 thickening or reinforcing is not shown in the miniature fac simile 
 presented herewith. Each section of wide and narrow leaves car- 
 ries the accounts through twelve months of time. 
 
 Each monthly space is divided into two principal parts, 
 Debits and Credits. The debits are subdivided into columns 
 headed "Balance from Last Month" and "Charges," with pro- 
 vision for recording the date of the sale or charge and the page of 
 the book from which the amounts are posted. The credit column 
 is similarly provided with spaces for noting the dates of the credit 
 items and the pages of the book from which they are posted. - 
 
 The Self-Proving Mercantile Ledger, as usually constructed, 
 has fifty lines to the page, numbered in the margins of the narrow 
 pages, and down the centers of the wide pages. In the first sec- 
 tion in the book the lines are numbered from CO to 49 inclusive, 
 and in the second section from 50 to 99 inclusive. All the other 
 sections throughout the book are similarly numbered and ar- 
 ranged alternately. The line numbers are to be read in connec- 
 tion with the page numbers, as, for example, page 8 and line 25 
 would read 825, thus instantly locating the portion of the book 
 
 ^fitt ' iUf yifji trnttm 
 
 «i'W**.t(^»:nk,'; 
 
 C-^-wW"--^ 
 
ACCOrXTIXG SYSTEM 
 
 115 
 
 EDGER 
 
 sed of alternate 
 ;kened or rein- 
 s so as to cause 
 istances. This 
 ature fac simile 
 TOW leaves car- 
 principal parts, 
 i into columns 
 jes," with pro- 
 and the page of 
 ,e credit column 
 tes of the credit 
 re posted. - 
 lly constructed, 
 is of the narrow 
 In the first see- 
 to 49 inclusive, 
 . All the other 
 nbered and ar- 
 read ii;i cdnnec- 
 ?e 8 and line 25 
 ion of the book 
 
 where a required line is to be found. The page numbers are re- 
 stricted to the wide pages, and are used in double pairs. The first 
 two pairs of facing pages are numbered 0-0, the second two pairs 
 i-i, the third two pairs 2-2, &c. In connection with the page 
 numbers there are small figures indicating the line numbers to be 
 found on the pages where they are printed. Thus, in the fac 
 simile, there appear in connection with the page number 8 small 
 figures reading '•QO to 49." which mean that all the numbers from 
 800 to 849 inclusive are to be found on these pages. The next 
 section would have printed after the 8, 50 to 99 inclusive, which 
 would mean that all the numbers commencing with 850 and end- 
 ing with 899 are to be found on the pages so labelled. 
 
 The Self-Proving Mercantile Ledger is furnshed with an in- 
 dex, the figures of which are marginally printed on the wide pages. 
 Opposite the figures thus printed, but on successive leaves, are 
 placed blank tags, so located that any required page may be in- 
 stantlv turned to by putting the finger under the tag and opening 
 the book at that point. The index figures are printed on the 
 margins of both right and left hand pages, and the t?gs are so 
 arranged that they may be used in turning to the required page 
 either from the front part of the book toward the back or from 
 the back toward the front. Thus, by using the tag opposite 800, 
 whatever may be the position of the book at the time, it will be 
 opened to the pages shown in the illustration. 
 
 Inasmuch as space for several accounts is provided on each 
 page, the accounts are indexed by numbers and not by pages. 
 Thus, in the illustrations given in the fac simile. Black & Gray are 
 No. 800, John Smith is No. 815. Robert Curtis is 825, and George 
 Thompson is 835. These numbers would be used instead of 
 pages in indexing the accounts. If we wanted find John Smith's 
 account we would first turn to the index, where it would be re- 
 corded as 815. Then, placing the finger under tag 800, as pre- 
 
 ■ ■■:*t'«*^.^;.,o-c!A:' 
 
110 
 
 THE SELF-PROVING 
 
 viously described, we would, with a single motion, open the book 
 to the pages shown in the fac simile. Then, running down the 
 line numbers to 1 5. we would find John Smith's name there wntien. 
 In opening the accounts in the Self-Proving Mer.antde 
 Ledger so much space vertically is allotted to an account as it is 
 estimated the transactions with the customer will reqmre. In 
 other words, as many lines are allotted to each account as the es- 
 ti.nated maximum number of entries, either debit or credit, for a 
 single month. Thus, in opening the account with Black & Gray 
 we have estimated that at most they would nev-^r require over fif- 
 teen lines, and, therefore, that number has been allotted to them. 
 John Smith has been allotted ten lines and Robert Curtis also ten 
 
 lines. 
 
 Accounts are opened by transferring from the previous ledger 
 as indicated in the example of Black & Gray. Their account, as 
 is recorded, is brought forward from Ledger F, page 957- The bal- 
 ance with which the old account closed was Dr. ?32542, which is 
 put in the balance column of the January period. Then the aebit 
 entries in the account are posted as they occur. By referring to 
 the items it will be seen that this firm bought goods at frequent 
 intervals during the month of January, commencing on the 2d, and 
 ending on the 31st. The credits are similarly posted in the order 
 in which they occur. Thus, on the 6 ,1 of January, Black & Gray 
 paid the balance owing from the previous month, $325.42. On 
 the 15th of January they remitted $265.50, paying for their bills 
 from the 2d to the 13th inclusive. 
 
 In using the Self-Proving Mercantile Ledger, wherever a 
 credit posting exactly balances a debit posting, or the amount of 
 several debit postings, it is very convenient to indicate that fact 
 bv making a short horizontal pen mark through the vertical ruling 
 CO the right of the cents columns and directly below the amounts 
 which balance. Thus, it will be noticed that under the amount 
 
;n the book 
 g down the 
 lere written. 
 Mercantile 
 ount as it is 
 squire. In 
 tit as the es- 
 credit, for a 
 lack & Gray 
 uire over lif- 
 ted to them, 
 irtis also ten 
 
 jvious ledger 
 r account, as 
 57. Thebal- 
 ;.42, which is 
 lien the debit 
 7 referring to 
 s at frequent 
 m the 2d, and 
 1 in the order 
 Black & Gray 
 325.42. On 
 for their bills 
 
 r, wherever a 
 the amount of 
 icate that fact 
 vertical ruling 
 V the amounts 
 zr the amount 
 
 ACCOUNTING SYSTEM 
 
 ■:i^ 
 
 brought forward from the previous month, $32542, such a mark 
 hrsb'een made, and also under the payment of the 6th of Janu^y 
 for like amount, because these balance or offset each other. 
 Again, under the last bill paid, in the remittance made on the 1 5th 
 a Lilar marks occurs, and likewise under the payment. By thi 
 plan it is shown at the end of the month that Black & Gray owe 
 only for the bills commencing January 15 and running to the end . 
 of the month. It is not necessary to go over the whole account^ 
 These items are footed and the amount, $651.95, is earned forward 
 into the balance column for February. 
 
 The February charges are posted as they occur, and also the 
 credits as they occur. By examination it appears that on the 5th 
 of February Black & Gray paid their January balance. The credit 
 item is posted, and the mark indicating the balance, already re- 
 ferred to, is placed under both debit and credit amounts. An in- 
 spection of the February account at the close of the month shows 
 ^hat all bills bought in that month are yet to be P-^ ^^^ 
 amounts are accordingly footed and carried " ^^^ f 
 March account, $926.78. The March purchases are posted in the 
 order of their occurrence, and likewise the credits^ On the 4th of 
 March th^s firm remit $500 on account. On the 7th of Ma^ch 
 they send $426.78. making, with the $500 previously remitted, a 
 payment in full of the balance owing the first of the month. The 
 horizontal mark indicating a footing is then placed directly below 
 the line of the second payment and also under the amount of the 
 balance On the 23d of March this firm remit $818.40 m payment 
 of the bills bought during the month up to the i6th inclusive 
 The presence of the short horizontal mark under the amount of 
 the last bill and under the remittance indicates to the bookkeeper, 
 when it comes time to carry balances forward, that only that por- 
 rion of the account below the horizontal line in the Charge column 
 tobeconsidered. The bills commencing March ,8andrunning 
 
118 
 
 THE SELF-PROVING 
 
 1 
 
 
 
 to March 31 inclusive are then footed, giving the balance with 
 which the April account comences, $784.72. 
 
 During the month of April it will be seen that payments are 
 made to balance the amount brought forward from the previous 
 month, and also each of the bills bought during the month, with 
 the exception only of the bill April 30, $187.50, which is carried 
 forAvard and opens the account for May. 
 
 On May 6 a check is remitted for the amount brought for- 
 ward from the previous month. On May 12 a check is remitted 
 for the bill of May 4. Horizontal marks of the kind above re- 
 ferred to are put in place, thereby showing to what extent the ac- 
 count has been balanced. On May 21 $800 is remitted on ac- 
 count, and on May 25 $200 on account. These amounts do not 
 exactly offset anything in the debits, and. therefore, in balancing 
 the account this month, the bills from the 6th to the 30th in- 
 clusive are footed, and the $1,000 substracted, giving a balance of 
 $499.39 to be carried forward. 
 
 The charges for goods bought in June are made in regular 
 course, and the credits as well, as the remittances come in. In 
 this month it will be noticed that three remittances of $500 each 
 are made, which do not evenly balance any amount of either the 
 balance brought forward or charge made or combinations of the 
 two. Accordingly, in this case, in striking the balance, the book- 
 keeper foots the balance from the last month, together with the 
 charges for June, and substracts the total of the remittances, carry- 
 ing forward the balance into July, $296.24. 
 
 The other entries in the account of Black & Gray are self-ex- 
 planatory. In September it will be seen that this firm, after re- 
 mitting on the 6th for the balance brought forward from the last 
 month, sent on September 12 a remittance for the bill of Septem- 
 ber 4, ignoring the bill of September 2. Again, on September 19, 
 they send a remittance that differs slightly in amount from the ag- 
 
 li nmiii i igMt a 
 
— :- 'T, 
 
 lance with 
 
 yments are 
 le previous 
 lonth, with 
 ii is carried 
 
 rouglit {or- 
 is remitted 
 
 I aljove re- 
 tent the ac- 
 tted on ac- 
 Lints do not 
 n balancing 
 he 30th in- 
 a balance of 
 
 e in regular 
 ome in. In 
 ){ $500 each 
 3f either the 
 itions of the 
 :e, the book- 
 her with the 
 ances, carry- 
 
 y are self-ex- 
 irm, after re- 
 from the last 
 
 II of Septem- 
 eptember 19, 
 
 from the ag- 
 
 I 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 eregate of several biUs which i. may be presumed they n.ended 
 fo cover by their remittance. In these cases, tnasmttd as he 
 amot-nts do not balance, the horizontal lines are om.tted and a 
 Tend of the month all the items debit are footed, and all the 
 teL credit are similarly footed, and the balattce ^'-k -rym^ 
 forward into October $48..o6. F™"^' .^''^e T anK 
 
 the December account of Black & Gray ts balanced n the same _ 
 genera, way as we have described, carrying forward mto Ledger 
 H and to hne 629 of the accounts for .897 the balance, $44t ■69- 
 
 John Smith, whose account occurs on line 8.5, .s a new cus- 
 tomer of the house, buying his first biUJanuary .5. Hedoesbus,- 
 ness through a period of two months only, and, as h,s account 
 shows, is accorded a very small line of credit. 
 
 Robert Curtis, whose account appears on line 825. becomes 
 a customer of the concern in March, and buys on thirty days t.me. 
 By examining his account it will be noticed that the Ml -March 7. 
 J34.70, is paid April 7, and that the bills March .8 and 27 are 
 paid April 18 and 27, thus closing up the March account. These 
 payments balance the amount brottght forward from the prev,ot« 
 month, $465.42, and, therefore, the horizontal mark - pl-ed be- 
 low the balance amount, and also below the last of the three 
 credits The two bills bought in April, it will be noticed, are sim- 
 ilarly paid in May. The four bills bought in May, amountmg to 
 $428.09, are paid in June in a single amount, where the account .s 
 
 closed. 1- Q-,r K*. 
 
 George Thompson, whose account appears on hne »35. "be- 
 comes a customer of the house in October. He also buys on 
 thirty days' time, and at the end of December owes the concern 
 $799^09, which balance being carried forward opens his account in 
 
 Ledger H, on line 740. „ , .• » 
 
 The Mercantile Ledger is self-proving in that all the postmgs 
 
 of a given page or series of pages collectively can be footed and 
 
u» 
 
 THE SEI-F-PROVING 
 
 compared in a way to demonstrate the accuracy of the work, or to 
 show on exactly what page the error has been made, in case it is 
 shown that an error exists. For example, take the months of 
 May and June, which particular months are selected because two 
 accounts run through this period of time, as shown in the minia- 
 ture fac simile. If the f^rst column containing the balance from 
 last month is footed, and if the charge column is similarly footed, 
 and the two amounts are added together; and, in turn, if the credit 
 column is footed and its sum is substracted from the total of 
 the debits just mentioned, th« result, if the work is correct, will be 
 equal to the total of the balances with which the June account is 
 opened. The principle and method of proving just described are 
 the same, irrespective of the number of accounts to the page, and 
 enable the bookkeeper to so sectionaUze his work as to know at 
 once, in case a mistake is made, just where to look for it without 
 the tedious process of checking back or duplicate posting. 
 
 In mercantile estabUshinents where monthly statements are 
 regularly rendered to customers the Self-Proving Mercantile 
 Ledger readily lends itself to the special requirements of the case. 
 For example, take the account of Black & Gray for the month of 
 May. As the postings have proceeded during the month, the 
 horizontal marks denoting settlements have been made as pre- 
 viously described. Inspection, therefore, shows that the statement 
 must contain the charges commencing with May 6 and ending 
 May 30, together with the credits May 21 and 25. Accordingly, 
 it is so made out. V'heii it is completed the balance which it 
 shows, $499.39, is carried into the June column on the ledger page. 
 In the same way, the account of Robert Curtis would show that 
 all the purchases made for the month of May are to be included 
 in the statement, the remittances made during the month having 
 balanced the amount brought forward from the previous month. 
 When the statement is completed its amount is Hkewise carried 
 
e work, or to 
 I, in case it is 
 le months of 
 
 because two 
 in the minia- 
 balance from 
 lilarly footed, 
 1, if the credit 
 
 the total of 
 orrect, will be 
 ine account is 
 described are 
 the page, and 
 as to know at 
 for it without 
 isting. 
 
 itatements are 
 ig Mercantile 
 Its of the case. 
 ■ the month of 
 he month, the 
 
 made as pre- 
 ; the statement 
 
 6 and ending 
 
 Accordingly, 
 
 ilance which it 
 
 he ledger page. 
 
 ould show that 
 
 to be included 
 ; month having 
 revious month, 
 likewise carried 
 
 MINIATURE FACSIMILE 
 
 OF THE 
 
 SELF-PROVING MERCANTILE LEDGER 
 
 WITH ENTRIES 
 
 (SEE PAGE 1 14) 
 
 Copyright 1897 
 
 BV A. O. KiTTRBDGE AND 
 E. R. KiTTRKDGE 
 
 :i 
 
 iJ 
 
 sss>ai»^a»: •«' 
 
8- 
 
 
 1896 
 
 
 i 
 
 NAME! ^^m 
 
 JANUARV 1 
 
 FEBRUARV 
 
 1 
 
 Indei 
 
 ANO J 
 
 Dtbiti 
 
 1 Crtditt 1 
 
 Dtbiti 1 CrtdiU 1 
 
 
 ADDRESSES 5 ^^^ 
 
 LMf 1 
 
 r»" 1 i "••« |ilJ| "»"' |".i;r.vr|i|i| "«" |j|i| 
 
 inoual 
 
 n 
 
 yf; 
 
 I^Jlo^/l t i/AiUi 00 31 
 
 
 7J kti^iy^'q -^Lii^ix .j>«. ^^/ijM-^y^i 
 
 // fi 
 
 
 / / 
 
 Luqi' 'llj\j>a.S-u/au, "' 
 
 
 
 
 
 i.ilk III 
 
 A 
 
 N >IJ i i] »Vi| 
 
 
 100 
 
 
 / 1^1 
 
 II Oy HI 
 
 in' 
 
 il>u <ijis?* 
 
 
 l.Sd 
 
 
 m 
 
 li Iff 1 fsA II II 
 
 J fr 
 
 
 HKi 
 
 
 (If. 
 
 (^i m ^ I > 
 
 il 
 
 
 
 
 
 a, 
 
 5ti Jc /J 
 
 T 
 
 »c _ . 
 
 
 
 
 
 0: 
 
 J 3 1 (J 
 
 30 
 
 
 
 3011 
 
 
 IIS 
 
 5^ IJi- i;jj4 1 1 1 
 
 
 
 aso 
 
 
 I'U 
 
 2^ :>'i ! 1 
 
 Vo 
 
 
 
 400 
 
 
 ID 
 
 5< i^v I'jt 
 
 Ji( 
 
 
 
 
 11 
 
 i > 
 
 t£ 1 
 
 
 
 
 \i 
 
 
 / 
 
 
 
 BOO 
 
 13 
 
 
 
 
 
 SBO 
 
 
 >. - '• 
 
 
 
 
 
 flOO 
 
 
 \L^"- 0»i.j^^ 15 
 
 /s if^ /f ^folj-j'/ol !/f -rJ b? 
 
 60 J :Jj / / v6 i 3£ 
 
 57 to 
 
 
 
 ^ f^ij^.j^/A^T(i> 10 
 
 ;<; • (li / 
 
 i.^ . 
 
 - ■ ' / 
 
 10 wi 
 
 
 ^' 
 
 17 
 
 ' / 
 
 
 7 
 
 
 700 
 
 
 i« 
 
 
 
 
 
 750 
 
 
 m 
 
 
 
 
 
 800 
 
 
 20 
 
 
 
 
 
 
 
 31 
 
 
 
 
 
 
 
 ii 
 
 
 
 
 
 NO 
 
 
 23 
 
 
 
 
 
 9B0 
 
 
 ■M 
 
 
 
 
 
 1000 
 
 
 AiiUjc/ C« N ,^iii> « 
 
 
 
 
 
 
 
 7// /S,<L ^^jorfr- » 
 
 
 
 
 
 
 
 OA'i^itfp " 
 
 
 
 
 
 1100 
 
 
 * a» 
 
 
 
 
 
 1150 
 
 
 M 
 
 .. _ ..\ 
 
 
 
 
 HOO 
 
 
 10 
 
 
 
 
 
 
 
 31 
 
 
 
 
 
 
 
 3S 
 
 
 
 
 
 
 
 S3 
 
 
 1 
 
 
 
 1350 
 
 
 
 
 1 
 
 
 
 1400 
 
 
 "=^X^.<. '/Cil«^l<nc M 
 
 
 
 
 
 
 ' ^/3/a- ;n4W(x/ ^i: »« 
 
 
 
 
 
 
 Pdft-/)(nur^ 37 
 
 
 
 
 
 ■" 1J06 
 
 <» 38 
 
 
 
 
 
 1550 
 
 90 
 
 
 
 
 
 1600 
 
 10 
 
 
 J 
 
 
 
 
 11 
 
 
 J 
 
 . 
 
 
 
 13 
 
 
 1 
 
 
 
 1700 
 
 13 
 
 
 1 
 
 
 
 1750 
 
 
 M 
 
 
 1 
 
 
 
 1800 
 
 
 * 
 
 
 
 
 
 
 S 
 
 
 
 
 
 
 7 
 
 
 
 
 
 ivuo 
 
 8 
 
 
 
 
 
 1950 
 
 9 
 
 
 
 1 
 
 
 
 
 [L 
 
 
 -I-I.. ._. 
 
 

 FHRUARV 1 
 
 
 „. 1 
 
 Credits 1 
 
 
 J < 
 
 HMCI 
 
 1 • 
 
 Noum 
 
 
 1»< _ _ 
 
 
 to ^ d 
 
 Itpi 
 
 m 
 
 >Ji - » 
 
 17 to 
 
 
 
 
 >fl < 
 
 siii?^ 
 
 
 
 
 rr^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 L 5J> / 
 
 ^0 v6 
 
 i±.. 
 
 ilho 
 
 
 
 
 vY / 
 
 Lt-Hi 
 
 
 
 
 ' 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8* 
 
 1 MARCH H APRIL 
 
 ■^ ^ B 
 
 •lane* 
 rw»rd 
 
 — 
 
 1 0*bl 
 
 M Crtditt II 
 
 D*blt< 
 
 1 Crtditi 
 
 ^^ t 
 
 _„ 1 RtmtrNt '« 
 
 Indti 
 
 uiMCi no* . I 
 
 UUI nNIH J i 
 
 c«... i 1 ...... |r.r:,';'.:|i|j| «- |i|i| •«— | [ .« 
 
 - ul;.. 
 
 
 00 ??<,;$ i_. 
 
 I ..iiJi: f/ii -i 
 
 c ee f 
 
 s^J^IIi .HI 
 
 lin, ^jp^.;i 
 
 . Jsu J 
 
 
 5l)_ 
 
 01 J- 
 
 CI il» il 1 Hl i 
 
 i^U r- 
 
 a Hi. I 
 
 ivc (' »y v^/l'wloi nil 
 
 m . . 7 J 
 
 i..;£ii ui£.& 
 
 
 .. iSiii.i 
 
 iiJi U4h..kl 
 
 iiS 0. 
 
 
 « /£ / 
 
 ^.LLi."* _ J_ 
 
 ^ 
 
 )aQk.Li 
 
 7£c Jj "0 .£2 
 
 J Jl OS 
 
 
 150 ■ 
 
 01 t2 J 
 
 
 
 
 
 04 
 
 
 •M> 
 
 uo /y J 
 
 lfl._4^4i| 
 
 
 
 
 n-> 
 
 
 3511 
 
 M li. i 
 
 i .iLii\ ,. 
 
 
 
 
 0« 
 
 
 
 irt ^X ' 
 
 (i.-£iii_ -- 
 
 
 
 
 o; 
 
 
 
 "« ;« f 
 
 a -ibii^ - 
 
 
 
 
 OH 
 
 
 390 
 
 , '»'_ M J 
 
 ■J....H1- ■■ 
 
 
 
 
 lit 
 
 
 4U0 
 
 10 %i i 
 
 t/ ^6 V7 
 
 
 
 
 to 
 
 
 4io 
 
 " V / 
 
 to.-£?S_ .. 
 
 
 
 
 tl 
 
 
 f,{fii 
 
 — Y ' 
 
 t-.iAlib.. .. 
 
 
 
 
 II 
 
 
 
 u 
 
 / 
 
 
 
 
 19 
 
 
 880 
 
 u 
 
 
 
 
 
 14 
 
 
 noil 
 
 It 
 
 
 
 
 
 .} 
 
 
 «90 
 
 10 
 
 
 
 
 
 19 
 
 
 inn 
 
 i; 
 
 
 
 
 
 " 1 
 
 
 
 IS 
 
 
 
 
 
 19 1 
 
 
 T80 
 
 II 
 
 
 
 
 
 11 
 
 
 900 
 
 20 
 
 
 
 
 
 iO 
 
 
 aso 
 
 11 
 
 
 
 
 
 91 
 
 
 ftni) 
 
 n 
 
 
 
 
 
 19 
 
 
 
 is 
 
 
 
 
 
 U 
 
 
 988 
 
 34 
 
 
 
 
 
 M 
 
 
 luoo 
 
 M T 
 
 ^ 11122 _ 
 
 -^ 
 
 iiia AoL.. 
 
 ;JS)^ 12^ .22 
 
 UJO » 
 
 
 1080 
 
 .■""" J 
 
 ^ SiS 
 
 
 .. "^.i 
 
 ll2£2 fi^.-Z 
 
 lit » 
 
 
 nnn 
 
 « j; 
 
 3» .iii^;{£ _ 
 
 
 
 -. ^^.iJ 
 
 6^ " 
 
 
 
 « — - 7 
 
 
 
 
 
 M 
 
 
 1180 
 
 w 
 
 
 
 
 
 M 
 
 
 1200 
 
 30 
 
 
 
 
 
 _ ^ 
 
 
 1350 
 
 11 
 
 
 
 
 
 91 
 
 
 ISOO 
 
 a 
 
 
 
 
 
 91 
 
 
 
 31 
 
 
 
 
 
 91 
 
 
 I3SU 
 
 M 
 
 
 
 
 
 14 
 
 
 UOO 
 
 » 
 
 
 
 
 
 - " 7^ 
 
 O^H ■JUt 
 
 14S0 
 
 99 
 
 
 
 
 
 ^^ 
 
 ' 1 ' 
 
 1(^0^ 
 
 87 
 
 
 
 J 
 
 
 1 
 
 
 
 38 
 
 
 
 
 
 9. 
 
 
 1S5D 
 
 d« 
 
 
 
 
 
 9* 
 
 
 1600 
 
 40 
 
 
 
 
 
 40 
 
 
 1«S0 
 
 41 
 
 
 
 
 
 41 
 
 
 17^ 
 
 411 
 
 
 
 
 
 4i 
 
 
 
 49 
 
 
 
 
 
 M 
 
 
 
 44 
 
 
 
 
 
 
 
 1800 
 
 40 
 
 
 
 
 
 4» 
 
 
 1650 
 
 40 
 
 
 
 
 
 « 
 
 
 lonn 
 
 47 
 
 
 
 
 
 4T 
 
 
 
 48 
 
 
 
 
 r 
 
 49 
 
 
 1990 
 
 4B 
 
 
 
 i -^ 
 
 1 
 
 49 
 
 
 MOO 
 
 
 -...til.. 
 
 I 1 
 
 1 L L 
 
 L 1 
 
 1 
 
 I 
 
 
 ■vi^^^mmc 
 
 SS'^iisawasj.-:'*?; 
 
8H 
 
 car,'-.-.'.'— J 
 
 1896 
 
 — 
 
 8 
 
 3 
 
 I 
 
 
 MAV 1 
 
 JUNE 
 
 ""~ 
 
 Indti 
 
 «ND 1 
 
 Dibit* 
 
 Crtditt 1 
 
 Dtbitt 1 
 
 Crtditi 
 
 
 
 ADDRESSES ' uuMiraon 
 
 IISI MOtllM 
 
 1 
 
 J c 
 
 HHCI 
 
 s 
 
 
 ! . 
 
 HOUkl 
 
 
 1 
 
 ! 
 
 CHUOI 
 
 J 
 
 H0I>«I 
 
 
 n 
 
 ^9 
 
 l^luiA r d\iiu "« - L 
 
 
 .Y 
 
 'A± _; 
 
 X-i^ 
 
 ,{J 
 
 LlA d 
 
 tl^ 
 
 >Vl 
 
 'j.S 
 
 / 
 
 .r 
 
 iiJA 
 
 £^ ..J 
 
 I'Ci OP 
 
 
 
 
 
 i 
 
 iili _- 
 
 ii/i 
 
 
 , :^\ I 
 
 .. J, y. 
 
 
 'T-/- 
 
 i 
 
 :( V 
 
 <■ y ro 
 
 jH; > 
 
 t> <i C'i" 
 
 
 B»- 
 
 )IUaJ fjrrl' "• _ 
 
 
 I 
 
 id 
 
 :;i4£ 
 
 1/ 
 
 '}( 4 
 
 
 
 
 (.'■ 
 
 r/ 
 
 (■ 1/ e^ 
 
 Hi t 
 
 i i. PO 
 
 
 leo 
 
 
 
 
 iji 
 
 U£. L 
 
 iii^ y 
 
 'T; 1 
 
 i£I 
 
 
 
 :. 
 
 ■t( £ 
 
 mil 
 
 
 
 
 ISd 
 
 
 14 
 
 
 
 
 
 
 
 
 '; 
 
 ilk __ 
 
 LiivJ 
 
 
 
 
 S(M) 
 
 
 iTi 
 
 ."(11:// 
 
 ir^C 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 .». 
 
 
 1J.7J .1 
 
 ^.ai:£ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n; 
 
 
 urn'/ 
 
 i.L^ 
 
 
 
 
 
 
 
 
 
 
 
 
 3U(i 
 
 
 u> 
 
 
 ^A H 
 
 /•rV 
 
 
 
 
 
 
 
 
 
 
 
 
 Ilftii 
 
 
 f'.i 
 
 vh • 
 
 T 
 
 
 
 
 
 
 
 
 
 
 
 
 4U0 
 
 lu 
 
 )Aii 
 
 r7i 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1.' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mo 
 
 IJ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ssu 
 
 
 ') " ,9 " ~ " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 600 
 
 
 UtKiA^i.li/f- '■■_- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^■n 
 
 
 ^ ^It^^iJu^^CO '« - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i- 
 
 1; 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 700 
 
 
 I-" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 760 
 
 
 lu 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 800 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 '.'1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Si 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 SOO 
 
 
 L'.( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 >50 
 
 
 i( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1000 
 
 
 J^u^Ci.nL^ -1 
 
 iim " 
 
 lii . 
 
 :^£S 
 
 ^ 
 
 iii _ 
 
 7>j'yi 
 
 /; 
 
 ■ ftPt 
 
 jt 
 
 ii .a 
 
 lio^ 
 
 
 
 
 
 
 -1 , ( I^ i ^ A A. "1. 
 
 _. i 
 
 i^l 1 
 
 '^'^1-' 
 
 /}j ;i 
 
 -vcj; 
 
 
 ^ 
 
 
 
 
 
 
 
 
 7// ya^<>. VtJcuX - •'" _ 
 
 
 
 
 Q-iJifi^a "' 
 
 -- 'S 
 
 if( 
 
 vStJT 
 
 / 
 
 
 
 
 
 
 
 
 
 
 ■■iiro- 
 
 
 WTV^»jfl 
 
 asTz 
 
 i i i\ 
 
 
 
 
 
 
 
 
 
 
 
 
 iieo 
 
 
 iit 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1900 
 
 
 30 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 31 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 3a 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1300 
 
 
 39 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1350 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 1400 
 
 
 ^^.Otv^A '/GwJtiin^ '■' _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' '/3/1- >n4x/cii a:- * - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 liCO 
 
 
 Aiftii (ni/rt,^ " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1S6A 
 
 
 3e 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 15S0 
 
 
 so 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1600 
 
 4( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 49 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "IVoo 
 
 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ITSO 
 
 44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1800 
 
 49 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IVW) 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1950 1 
 
 4> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 ■ .ii:».»> 
 
 
 
 
 
 
 JUNI 
 
 
 
 JULV 1 
 
 AUOUIT 1 
 
 1 
 1 
 
 1 
 
 Indaa 
 
 lit 
 
 Crtditt 
 
 1 ^ 
 1 
 
 Dtbtit 1 
 
 Cradlti 1 
 
 Dtbiti 1 
 
 Credit* I 
 
 R«mart(i 
 
 forward 1 
 
 \ CMMOI 
 
 i J 
 
 >HOl«t 
 
 •aui 
 
 Kl rM* 
 
 1 iMia J 
 
 1 ' 
 
 HUM 
 
 J • 
 
 ..«, ti' 
 
 Ml xoa 
 
 1 MHIH 
 
 i 
 
 J c 
 
 hMSI 
 
 i • 
 
 lOUMt 
 
 Ullllllt 
 
 1* 
 
 
 ^ --i.i2i 
 
 i'Jii ..i 
 
 >.' 11 CO 
 
 
 00 ^ 
 
 ^tw { 
 
 ^ -J 
 
 . »■ ij 
 
 Jli 5 
 
 jl^ii .1 
 
 f7tfV 
 
 .1 
 
 'J> 
 
 *;ij£ 
 
 hi-i 
 
 
 00 
 
 '^ 
 
 •l 1 i\ 
 
 6.;j 
 1 
 
 
 1 
 
 ll- 'it-'^'.o 
 
 J ^ i 
 
 I'd CV 
 
 
 01 
 
 ^ 
 
 ^ z 
 
 i^ij 
 
 I¥< f 
 
 ti:r 
 
 r 
 
 ,}■ 
 
 Zii-i 
 
 /6i( 
 
 
 
 1 
 
 
 1 f'/£^ 
 
 a '*' -i 
 
 I V t>C 
 
 
 « 
 
 
 / 
 
 
 
 
 
 •» 
 
 
 ^biill 
 
 pr^fi 
 
 
 t _ 
 
 iia 
 
 
 '( -iL^ll 
 
 
 
 
 m 
 
 
 
 
 
 
 
 /f 
 
 ^ 
 
 <"/ >y 
 
 '•?■ ? 
 
 
 
 130 
 
 ^ :yvJ 
 
 
 
 
 <M 
 
 
 
 
 
 
 
 /i 
 
 '" ^ 
 
 J3 ti 
 
 -t -i 
 
 
 m 
 
 
 
 
 •21 HI 
 
 ^ 
 
 
 
 
 Kl 
 
 
 
 
 
 
 
 i.r 
 
 
 i^/c 
 
 
 
 'i\ 
 
 
 
 
 
 a.'rO 
 
 
 
 
 
 
 0« 
 
 
 
 
 
 
 
 'S 
 
 J»J 
 
 7 f up 
 
 
 
 <« 
 
 
 
 
 
 
 
 
 
 
 
 fl7 
 
 
 
 
 
 
 
 11 
 
 ill 
 
 _5i£i 
 
 
 
 n7 
 
 
 
 
 
 
 1 
 
 
 
 
 
 tA 
 
 
 
 
 
 
 
 ti 
 
 UL-i. 
 
 •v: To 
 
 
 
 tm 
 
 1 
 
 
 
 
 
 590 
 
 
 
 
 
 
 OU 
 
 
 
 
 
 
 
 u 
 
 iii .- 
 
 JLili 
 
 
 
 H'.i 
 
 
 
 
 KX) 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 ?; 
 
 i5/ /J 
 
 'li'D 
 
 
 
 IV 
 
 
 
 ^^^■™ 
 
 4Jb 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 Mfl< . 
 
 
 
 
 
 Vi 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 990 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 14 
 
 
 
 00(1 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 19 
 
 - -_ 
 
 
 DSO 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 I 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 • 
 f 
 
 ^ 
 
 1 
 
 _ 
 
 1 
 
 1 
 
 1 
 
 i 
 
 'f, 
 
 i 
 (••■ 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 -nw- 
 
 
 
 
 
 in 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 8i'0 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 ^ ^aa 
 
 ^■""^ 
 
 890 
 
 
 
 
 
 21 
 
 
 
 
 
 
 
 
 
 
 
 
 n • 
 
 
 
 
 
 
 
 
 13 
 
 
 
 
 
 
 
 
 
 
 
 
 ■it 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 990 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 •H 
 
 
 
 11/0(1 
 
 li Hii-oS. 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 ■a 
 
 
 
 1090 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 ■it 
 
 
 
 
 
 
 
 
 « 
 
 
 
 
 
 
 
 
 
 
 
 
 87 
 
 
 
 
 
 
 
 
 as 
 
 
 
 
 
 
 
 
 
 
 J 
 
 
 S8 
 
 
 
 -nwr 
 
 
 
 
 
 N 
 
 
 
 
 
 
 
 
 
 
 
 
 w 
 
 
 
 I20O 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1290 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 81 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 88 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 88 
 
 
 
 -TJStr 
 
 ' 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 84 
 
 
 
 
 1400 
 
 
 
 
 
 as 
 
 
 
 
 
 
 
 
 
 
 
 
 89 , 
 
 (5<? L?<3 
 
 7i/( 
 
 1490 
 
 
 
 
 
 ae 
 
 
 
 
 
 
 
 
 
 
 
 
 J. 
 
 rfi' 
 
 ~r^ 
 
 
 
 
 
 
 m 
 
 
 
 
 
 
 
 
 
 
 
 
 87 
 
 
 
 
 
 
 
 
 88 
 
 
 
 
 
 
 
 
 
 
 
 
 88 
 
 
 
 1590 
 
 
 
 
 
 at 
 
 
 
 
 
 
 
 
 
 
 
 
 aa 
 
 
 
 1600 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 ^^^ 
 
 1690 
 
 
 
 
 
 ti 
 
 
 
 
 
 
 
 
 
 
 
 
 Jl_ 
 
 1 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 M- 
 
 
 
 
 
 
 
 
 la 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 179U 
 
 
 
 
 
 44 
 
 
 
 
 
 
 
 
 
 
 
 
 JL. 
 
 
 
 1800 
 
 
 
 
 
 4S 
 
 
 
 
 
 
 
 
 
 
 
 
 49 
 
 
 
 1690 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 « 
 
 
 
 IWfr- 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ ■ 
 
 ~" 
 
 "^^^ 
 
 
 ,• 
 
 
 
 
 ' '=- ■ 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 Ji 
 
> 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1896 
 
 ^■■B 
 
 41 
 
 
 •^ 
 
 1 
 
 NAMI* g 
 
 AND 1 
 
 ADORttlll 
 
 
 IIPTIMIIR 
 
 OCTOIIR 
 
 
 In4t> 
 
 t ^ 
 
 0«btti 1 
 
 C'tdit 
 
 I 0«bili 1 
 
 C'tditi 1 
 
 kU 
 
 ■CI lua , 
 
 naiiiH J 
 
 1 ' 
 
 IM«I 
 
 i '" 
 
 "" "ilT 
 
 1 riOM 
 
 MMTN 
 
 d 
 
 1 
 
 HUM 
 
 i . 
 
 M0UW1 
 
 ^■— 
 
 
 00 ; 
 
 ^"^ .^ 
 
 l^ 
 
 iiii. 
 
 ^ -i; 
 
 <» r-^i 
 
 Li^ i] 
 
 :u; .i 
 
 Cli^ 
 
 J^ 1 
 
 f|^c( 
 
 — 
 
 u 
 
 "1 
 
 ; '■; 
 
 ill_< 
 
 i\il 
 
 il^ -HI 
 
 li .. 
 
 
 
 
 
 ^.i 
 
 idb^ 
 
 
 ut 
 
 5 
 
 JJlj_. 
 
 S.\io. 
 
 11 -i\ 
 
 »f 
 
 
 
 
 
 
 
 
 
 
 ^' ;/^^v;.A' " ^ 
 
 
 (■ 
 
 h- ^ 
 
 ">>_. 
 
 r r- 
 
 
 
 
 
 
 
 
 
 
 100 
 
 
 / 
 
 
 M 
 
 
 i2i 1 
 
 I ) Mti 
 
 
 
 
 
 
 
 
 
 
 
 
 m 
 
 
 ua 
 
 is 
 
 i llJL 
 
 iiy 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 „;. 
 
 suu 
 
 u« 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ... 
 
 
 1)7 
 
 li 
 
 i Mi 
 
 iL tli. 
 
 
 
 
 
 
 
 
 
 
 
 
 i>; 
 
 
 tw 
 
 1 
 
 r 
 
 i M -i 
 
 r 
 [2tL£ 
 
 
 
 
 
 
 
 
 
 
 0)11 
 
 
 ,- 
 
 
 u« 
 
 .. li 
 
 li... 
 
 > ffc 
 
 
 
 
 
 
 
 
 
 
 
 
 I'f 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lu 
 
 ivi 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \> 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 • m 
 
 
 IJ 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 1/ yf X^, ' ,/T 11 
 
 m 
 
 
 ^ ^t t.^ k tit^.^CO !• 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «w 
 
 ^ 
 
 17 
 
 l» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ID 
 
 
 
 
 
 
 
 
 
 
 
 
 
 7M 
 
 
 1* 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11/ 
 
 
 
 20 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 epo 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ijl 
 
 
 1 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' "500 
 
 
 i.' 
 
 an 
 
 
 »♦._ 
 
 
 
 
 
 
 
 
 
 
 
 
 950 
 
 
 ^ 
 
 
 
 ytWujo/C^jcAi, *■ "-- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 >oto 
 
 
 //f Atlv- J-Vi*fc*- 
 
 
 
 
 
 
 
 
 
 
 
 
 TIW 
 
 
 • a 
 
 ; A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 60 J 
 
 J 
 
 
 3C 3'-- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 '^Ofl 
 
 
 •Jl " _ _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 -M»»- 
 
 
 .r. "__ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 , -\m 
 
 
 .,:. *> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1350 
 
 
 M «♦ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^jUty^A 'jl^nJtitn*. '" - - - 
 
 
 
 
 
 
 
 liSo\ t 
 
 i}£L 
 
 
 
 
 
 ' ^/2/i- yukjt/ui Vi *— 22 - - 
 
 
 
 
 
 
 
 ^ 
 
 iii.i 
 
 LUU 
 
 
 
 
 HCO 
 
 
 
 
 
 
 
 
 ( 
 
 
 
 
 
 
 ltfi6 
 
 „ 88 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1"" «i "1 . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -H^ IM 
 
 
 
 
 
 
 
 
 
 
 
 
 
 * 
 
 4 *> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -««« — 
 
 «■ *" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -iVoo 
 
 i' «> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1760 1 
 
 4, 44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1800 y 
 
 41 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4. M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4' " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 -vm 1 — 
 
 * 4S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 19.^ 1 
 
 * ** 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 
 .,». 
 
'M 
 
 r>a^Aj&f<i^.»>us ' 'v!>v}s i ;Kma R agfegar/j^H ^^ 
 
nr-' 
 
 liii"y'i--r^ffti 
 
ACCOUNTING SYSTEM 
 
 121 
 
 into the balance column of the June account, and all other open 
 accounts take the same course. Then, by applying: the system of 
 pcoof above mentioned, before the statements are mailed, the 
 bookkeeper is afforded the assurance, not only that the ledger 
 work is correct, but that the statements have been sent out free 
 
 from error. 
 
 Wherever a trial balance is required for the purpose of sum- 
 marizing the transactions or arranging a statement it may be 
 taken oflf the Self-Proving Mercantile Ledger in the usual manner, 
 but a trial balance is unnecessary so far as proving the correctness 
 of the book is concerned. The arrangement of accounts in the 
 ledger, as already described, provides other and better means of 
 proving. A monthly summary sheet may be used for recapitulat- 
 ing the balances taken by the ledger pages in case a total is wanted 
 in that form, or with an adding machine, Uke the Comptometer, 
 these balances may be tallied of¥, account by account, or page by 
 page, as may be preferred, in a small fraction of the time that the 
 summary would require, thus reaching an amount as a balance to 
 correspond with the balance in Dealers' Ledger or Sundry Debt- 
 ors' Ledger account, by whatever name called, in the Private 
 Ledger or General Ledger. 
 
 The Self-Proving Mercantile Ledger, as here shown, is ruled 
 without a column for "Items." Where an item column is desired 
 a special book is provided, other features remaining the same as in 
 the fac simile here presented. It is very generally the rule to as- 
 sume that all charges are for merchandise, unless otherwise speci- 
 fied. Therefore, when a special charge occurs, Uke Interest or 
 Cash, or Note Returned, it is indicated by an initial, or by some 
 code mark in connection with the amount in the charge column. 
 For example, an asterisk (*) might stand for Interest, a dagger 
 (t) for Cash, and a double dagger (t) for Note, and so on. In the 
 same way, on the credit side, it is very generally assumed that un- 
 
 i 1 
 
 Imii 
 
 "^m 
 
 mm 
 
 iigllJS^k'- 
 
J22 THE SELF-PROVING 
 
 less otherwise specified, the credits are all cash payments. Credits 
 other than cash might similarly be indicated by a code of marks. 
 A double dagger (t) might stand for Note or Acceptance, a section 
 mark (0 for goods returned, and so on. 
 
 The Mercantile Ledger is self-proving in addition to what has 
 been said above with reference to page balances in that all the 
 posting of a month (debits) may be collected together, either by 
 footing the several pages in the ordinary way or by tallying ofif the 
 amounts on a Comptometer. Thus, if all the charges posted to a 
 ledger in a month are for merchandise, then the total of the debit 
 column should agree with the sales book, and if all the credits for 
 the month are cash, then the total of the credit postings, taken in 
 the same manner, should agree with the cash book. By first pick- 
 ing out the items which are indicated by the code as belonging to 
 other classes, the debit postings would be separated into several 
 amounts, corresponding with (i) cash entries, (2) sales book, (3) 
 notes returned, &c., and the credit postings into amounts corre- 
 sponding with ( I ) cash book, (2) bill book, &c. 
 
 It sometimes occurs, although not illustrated in the fac simile 
 here presented, that a customer remits more than he owes at the 
 time, and that accordingly the balance carried forward to the new 
 month is a credit balance instead of a debit balance. Irregulari- 
 ties of this kind are very easily managed by establishing the rule 
 to write all credit balances in red ink. Then, in proving the 
 ledger, the credit balances are taken by themselves, and are sub- 
 tracted from the grand total. 
 
 The history of a customer's transactions with the house af- 
 forded by the pages of the Self-Proving Mercantile Ledger, as in- 
 dicated by the account with Black & Gray, in the fac simile pre- 
 sented herewith, is of the greatest value to the business mUn. No 
 trial balance can compare with it in this respect, and the old form 
 of ledger cannot be made to show the course of the account or of 
 
s. Credits 
 e of marks. 
 ;e, a section 
 
 to what has 
 that all the 
 ;r, either by 
 lying off the 
 posted to a 
 of the debit 
 e credits for 
 igs, taken in 
 iy first pick- 
 )elonging to 
 into several 
 les book, (3) 
 ounts corre- 
 
 the fac simile 
 
 : owes at the 
 
 ■d to the new 
 
 Irregwlari- 
 
 hing the rule 
 
 proving the 
 
 and are sub- 
 
 the house af- 
 Ledger, as in- 
 ;ac simile pre- 
 ess mSin. No 
 i the old form 
 account or of 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 a number of accounts in nearly so satisfactory a manner. When 
 the Self-Proving Mercantile Ledger is used as an element of an 
 accounting system in which the collective ledger becomes a per- 
 petual balance sheet, the necessity of the trial balance, with its per- 
 plexing errors in additions in transferring amounts from the 
 ledger, in getting items into the wrong column, and all the 
 other errors with which accountants are familiar, is entirely re- 
 moved. 
 
THE INSTALMENT LEDGER 
 
 The ledger used in the Self-Proving Accounting System for 
 keeping the instalment accounts is composed of sections, each hav- 
 ing two wide pages and ten narrow pages. Each of the narrow 
 pages and a space of equal width on each of the two wide pages are 
 devoted to the transactions of a month. A section, therefore, cov- 
 ers a year. 
 
 The ledger is constructed upon the line account principle. 
 The customers' names are entered in a space provided for the same 
 at the left of the first wide page of the section. Each customer's 
 account is restricted to a single line. In each monthly period 
 there is, first, a space for the Balance brought forward from the 
 preceding month, and, second, for a charge of Merchandise or In- 
 terest, or both. Then follow five spaces for recording Payments, 
 with their Dates. A column is next provided for the Total Cash 
 credits, and then a space is allowed for Sundry Credits, such as Al- 
 lowances, Bad Debts, Goods Returned or Notes. The entries as 
 they occur are posted for the first month, and then the balance in 
 the account is struck and the amount carried forward to the first 
 space in the succeeding month, when the operation is repeated. 
 
 With the accounts arranged in this manner, in horizontal 
 spaces, following in succession down the page, it is possible to foot 
 separately the several columns in each monthly division, thereby 
 showing the total of the charges and the total of the credits that 
 have been posted to each page, and by combining the footings of 
 the pages— to show the total of the postings to the entire ledger 
 
System for 
 IS, each hav- 
 
 the narrow 
 ie pages are 
 irefore, cov- 
 
 it principle, 
 for the same 
 1 customer's 
 ithly period 
 ird from the 
 mdise or In- 
 g Payments, 
 » Total Cash 
 5, such as Al- 
 he entries as 
 tie balance in 
 d to the first 
 repeated, 
 in horizontal 
 issible to foot 
 sion, thereby 
 ; credits that 
 le footings of 
 entire ledger 
 
 ACCOUNTING SYSTEM 
 
 125 
 
 ,„r each month. By footing the firs. col„„,n, "Ba ance Iron, la 
 month." there U given as .he rest,,, the .o.a, o. .he ha hutce 
 brought forward, or the total of the amount owmg by .he cus.o 
 mers a. .ha. da.e. By foo.ing .he amoun. of Merchand.se and 
 Interes. charged there is obtained a sum which represents he 
 total that has been posted to the customers' accounts for .he 
 mon.h. If .hese .wo amoun.s-namely, the total of the balances 
 owing at the beginning of the month, and the total tha. has been 
 charged during the mon.h-are added .ogether and tf from tha 
 amount .here is sub.rac.ed the total of the cred,. columns for the 
 mon.h. then the remainder will be the .o.al of .he balances to be 
 carried forward to the succeeding month. When the balances 
 have been carried forward .hey are footed and the amotmt com- 
 . pared with that determined by .he other plan. By th.s method, 
 therefore, the ins.almen. ledger is self-proving, no. only when 
 .aken as a whole, but also when taken page by page and month by 
 month. A ht.le fur.her on in .his account we shall explan, stdl 
 other features of proof, indicating the means of checking w.th the 
 sales book and cash book. 
 
 The footings of the several columns of a given month may be 
 carried forward from the first section to the second, and tn turn 
 from the second to the third, and so on. or the pages may be footed 
 separately and then may be summarized or totalled m a special 
 book provided for the purpose. 
 
 The faint lines of the pages are numbered, on the broad pages 
 and also on the margins of the several narrow pages. Each tenth 
 number is distinguished by size or face of type, and each fifth Ine 
 is distinguished by the thickness of the Une. or by color. The hne 
 numbers are to be read in connection with the folios or page num- 
 bers Thus, for example, if the book is opened to page 400, and a 
 certain account is on line 18, then that account is known as ac- 
 count No. 418, and would be so indexed. The famt hues run fifty 
 
 Tmssa»(b)fti»?ii» t4i,ii/!-' 
 
IP" 
 
 120 
 
 THE SBW'-PROVIXG 
 
 1 
 
 
 to the page. In the first section they are from o to 49 inckisive, 
 and in the second section are from 50 to 99 incKtsive. They con- 
 tinue in this way alternately through the entire book. The folios 
 or page numbers are in pairs on facing pages, and advance by 
 fifties. In the example cited above, page 400, the line numbers, 
 being read in connection with the 400, give accounts 400, 401, 402, 
 and so on in regular succession to 449 inclusive. The next pair 
 of pages in the book is numbered 450, which also, bdng read in con- 
 nection with the line numbers, give accounts 450. 45 1. ^"^ ^o on in 
 regular succession to 499 inclusive. Starting the line numbers 
 with o on the first page gives even fifties and even hundreds at the 
 tops of the pages, an arrangement that greatly facilitates refer- 
 ences. 
 
 The book is indexed by blank tags fastened to the broad 
 leaves opposite numbers printed in series in the margins of the 
 leaves corresponding to the folios or page numbers, and so ar- 
 ranged that the book is opened to any required page by lifting the 
 tag opposite the number corresponding to the page that is 
 wanted. The index figures are printed on the margins of both the 
 right and left hand pages, and the tags are so arranged that they 
 may be used in turning to the required page either from the front 
 part of the book toward the back or from the back part toward 
 the front. Thus, by using the tag opposite 400, whatever may be 
 the position of the book at the time, it would be opened to the 
 page numbered 400. 
 
 The Self-Proving Instalment Ledger, as commonly built, has 
 3,000 accounts to the volume. The index, for convenience, is 
 divided in the middle, and two sets of tags are employed. The 
 first set is used for opening the book to any required page from o 
 to 1,450 inclusive, and the second set from 1,500 to 2,999 inclusive. 
 The manner of using the Self-Proving Instalment Ledger will 
 be better understood by an examination of the accompanying 
 
jzrc: 
 
 ACCOUNTING SYSTEM 
 
 tir 
 
 ^9 inclusive, 
 They con- 
 The folios 
 advance by 
 le numbers, 
 50,401,402, 
 le next pair 
 read in cori- 
 and so on in 
 ne numbers 
 idreds at the 
 lltates refer- 
 
 the broad 
 rgins of the 
 i, and so ar- 
 3y lifting the 
 )age that is 
 IS of both the 
 ed that they 
 om the front 
 
 part toward 
 tever may be 
 pened to the 
 
 nly built, has 
 nvenience, is 
 ployed. The 
 
 1 page from o 
 999 inclusive. 
 It Ledger will 
 ccompanying 
 
 miniature facsimile sheets, and tracing the several accounts re- 
 corded thereon from the opening entry to the closing. The first 
 four accounts, it will be seen, have been transferred from another 
 ledger. The account with Cunnington, who owes $26.65, l^as 
 been brought forward from line 960 in ledger B. The account 
 with Ramsay has been brought forward from line 972. that of 
 Holden from line 986, and that of Mrs. Malone from line 1,003. all 
 in ledger B. The several balances of these accounts are entered 
 in the^'first column, which, as previously explained, is devoted to 
 Balances Brought Forward. Cunnington, it will be noticed, 
 makes four payments during the month of January of 50 cents 
 each, on the 7th, 14th, 21st and 28th days respectively. These 
 pavments are entered item by item as they occur, being posted 
 from the pay cards or cash book, and at the end of the month are 
 totalled. The amount of these credits, $2, is subtracted from the 
 balance brought forward, $26.65, leaving a balance of $24'.65 to be 
 carried forward into February. The same number of payments is 
 made by Cunnin-ton in February, which are totalled and sub- 
 tracted, and the balance of $22.65 is carried forward into March. 
 In that month he makes five payments, making a total credit of 
 $2.50, which subtracted leaves a balance of $20.15 to be carried 
 forward into April. His account proceeds in this general way 
 until we reach October, when we find that he buys an additional 
 bill of merchandise amounting to $11. This comes from order 
 slip A 2,889, and the proper reference is posted in the Sales Num- 
 ber column. On this new purchase he pays $1 down, and in ad- 
 dition maintains his payments of 50 cents a week on the old ac- 
 count. His total credits for the month of October are $3. His 
 debits consist of the old balance, $7.15. and the new bill, $11, 
 which, added together, make a total of $18.15. from which is sub- 
 tracted the amount of the credits, $3, carrying forward into No- 
 vember a balance of $15.15- His account proceeds in regular 
 
 i 
 
 
 '^ 
 
i 
 
 J28 THE SELF-rROVING 
 
 course to the end of the year. The balance at the close of De- 
 cember is extended into Balance Forward Column, $11.15- ^h's 
 amount opens the account in the ledger for the new year. 
 
 In Ramsay's account, which starts with a balance of S.13.05, 
 with two credits in January amounting to $2, we show how an 
 Allowance is treated. For some reason or other he is to be 
 credited with a deduction, or discount, amounting to $1. This 
 amount is posted into the Sundry Credits column, and in the ex- 
 planation column alongside there is put "A," which, referring to 
 the titles printed at the head of the column, stands for Allowance. 
 The total of the cash and this allowance credit is subtracted from 
 the Balance Brought Forward, making a new balance of $10.05, 
 with which the February account is started. Ramsay makes a 
 single payment in February, and the balance of $9.05 is earned 
 forward into March. Payments continue to be made, month by 
 month, including June, reducing the amount at that date to $2.05, 
 when, for some reason, not necessary to explain, Mr. Ramsay 
 ceases to make payments. Accordingly the balance, $2.05, m this 
 account stares the manager of the business in the face month 
 after month during August, September, October. November and 
 December, thereby suggesting investigation. As shown in the 
 example it is finally carried into the Balance column with which 
 the ledger closes as the amount with which the account is to be 
 opened in the new year. 
 
 Holden's account commences in January with a balance 
 brought forward of $575. He at once buys another bill of goods, 
 as per sales No. A 160, amounting to $15. He pays $4 down on 
 this purchase on the 6th of the month, and on the 20th pays $2 on 
 account of his total indebtedness. The old balance and the new 
 bill are added together, the credits are totalled and their amounts 
 subtracted, leaving a balance, $1475. with which the Februa:T 
 account is commenced. Holden's account proceeds in regular 
 
lose of De- 
 1.15. This 
 r. 
 
 e of 5^13.05, 
 ow how an 
 ie is to be 
 o $1. This 
 d in the ex- 
 referring to 
 • Allowance. 
 :racted from 
 :e of $10.05, 
 say makes a 
 05 is carried 
 le, month by 
 late to $2.05, 
 Mr. Ramsay 
 $2.05, in this 
 ; face month 
 ovember and 
 shown in the 
 n with which 
 ;ount is to be 
 
 ith a balance 
 r bill of goods, 
 ^s $4 down on 
 Dth pays $2 on 
 e and the new 
 their amounts 
 the February 
 eds in regular 
 
 M 
 
 IMIATURE FACSIMILE 
 
 OF THE 
 
 SELF-PROVING INSTALMENT LEDGER 
 
 WITH ENTRIES 
 
 (SEE PAGE ia4) 
 
 CopvmoHT 1897 
 
 By J. F. Browh and 
 
 A. O. KlTTRBDOr 
 
4f < 
 
 400 
 
 
 JANUARY 189 
 
 
 n«« 
 
 NAMES 
 
 « 
 
 DIIITt 1 
 
 •• 
 
 CRIOITt 1 
 
 "■ 
 
 
 
 f UtMCI fMM 1 ■■■CNMttll 1 
 
 J I IT ttOHtN 1 Ml lUTIillt 1 
 
 iMiia DAin 1 ""'^ '*•" 1 cMWTi 1 
 
 Li 
 
 
 
 
 ilM«tf«ra $etii§kl Ftrmmf^ 
 
 
 
 
 i««H '1 ^ 
 
 r.u, 
 
 , ,. «. 
 
 « 
 
 
 
 
 9b 
 
 
 ll>-U£^(U4t. Lu.< V vt,M4l9 Urw. 
 
 
 
 
 
 
 » 
 
 It 
 
 1' 
 
 >t 
 
 
 
 
 
 
 ?6o 
 
 '„i.ki:'.: 
 
 
 
 .r»' 
 
 J\' 
 
 1*° 
 
 iv 
 
 
 .\i!£ 
 
 
 
 
 
 / 
 
 / 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 too 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -IBA 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Hll 
 
 
 
 
 
 
 
 
 it 
 
 
 J( 
 
 
 
 
 
 
 LiC£... 
 
 
 
 
 
 liU 
 
 
 
 ioof 
 
 
 A 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 200 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "r 
 
 
 
 
 
 
 
 
 
 ZBO 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 j7 i_v , / < / 
 
 
 
 1 
 
 A 
 
 
 
 ir 
 
 
 
 
 
 
 nnn ^ili 
 
 k./i./^yidjUA^ "III 
 
 ->i;i,-.,- 
 
 / J' I'c A 1 60 
 
 iiM 
 
 
 
 jrf 
 
 
 , ^ ^P 
 
 
 
 1 
 
 if 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -- i- 
 
 
 
 
 
 
 
 
 
 3B0 ' 
 
 
 10 
 
 *■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 400 
 
 
 \t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 iff4? 
 
 r 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 IX 
 
 
 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 IS 
 
 +■- 
 
 
 
 
 
 
 
 
 
 
 600 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lA 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 BOO 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 ?*:f^ 2tv4ki«. 5i<a^*>-»u. 
 
 IS 
 
 
 1 1' ! rii. 
 
 i. 
 
 ti 
 
 (\ 
 
 >" 
 
 31 ■"" 
 
 
 
 
 
 
 iHld. _- 
 
 , i >/5 1 'si 
 
 htc 
 
 /■•* 
 
 t** 
 
 (■••• 
 
 rt: 
 
 _fifl£ .. 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 ^ ::: 
 
 q: 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 6S0 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 «l 
 
 
 
 
 
 
 . 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 700 
 
 
 2.! 
 
 
 
 
 
 
 
 
 - _ 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 23 
 
 
 
 
 
 
 
 
 
 
 
 ___ 
 
 
 
 
 
 
 
 
 
 
 TBOI 
 
 
 i4 
 
 
 
 
 
 
 
 
 " 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3S|{ 
 
 
 
 
 
 
 
 
 
 
 900 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 860 
 
 
 i'nMtt.a^ foUtCX^ 
 
 27 1 
 
 
 
 A lua 4 
 
 
 n 
 
 
 
 
 
 
 
 
 2 w.\ri 
 
 A So' 3.M 
 
 
 f,yi 
 
 
 
 -^2£ 
 
 
 
 
 
 !« 
 
 
 
 
 
 / 
 
 
 
 '7^ — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 9« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 "T' 
 
 
 
 
 
 
 
 
 
 
 
 960 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 31 
 
 i- 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 1000 
 
 
 
 32 
 
 i-- 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 j! 
 
 
 
 
 
 33 
 
 
 
 
 
 
 
 
 
 
 Q 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 lUlfU 
 
 
 
 34 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 35 
 
 
 
 
 
 
 
 
 
 
 
 MOO 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 SS 
 
 
 
 1 
 
 
 
 
 ■■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1160 
 
 
 
 37 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Urt f huJCcL// 
 
 38 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 llUv 
 
 
 
 S» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 12fiQ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1300 
 
 
 
 42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 r 
 
 
 
 
 
 
 
 
 
 
 
 IdBU 
 
 
 (^a*M«xt /7^. 
 
 44 
 
 L. 
 
 
 
 
 
 
 
 
 
 
 
 
 r. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 45 
 
 
 
 
 
 
 
 
 
 
 
 
 I40(X 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I4B0 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 '-'- m 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mmmntt CarrM rtrmtr4 
 
 
 hEl 
 
 i]^S 
 
 inoi ft ( 
 
 am' 
 
 ift 
 
 '»ar 
 
 f 
 
 :275 
 
 J^oo 
 
 
 ■"^ 
 
ORIOITt 
 
 
 
 FEBRUARY 
 
 
 189 
 
 
 
 
 
 
 400 
 
 
 f 1 OIIIT* 1 
 
 UitI 
 
 M ' 
 
 ORtDITt ] 1 
 
 ^■^^ 
 
 
 UKi^Wit^HI 
 
 
 r , 1 - 
 
 ucM. •; 
 
 t 1 
 
 Irs: 
 
 
 BO 
 
 
 
 
 
 im§i 
 
 kfrl 
 
 ^^ 
 
 fma 
 
 ^ 
 
 7^ 
 
 
 
 1 1 
 
 — 
 
 __vv 
 
 
 
 
 tKtii:: 
 
 
 
 .it 
 
 f 
 
 ^ 
 
 ,it 
 
 
 
 l££ "11 
 
 
 — — S ! 
 
 
 
 ■res 
 
 
 
 
 
 
 ._ 
 
 
 
 -~~ 
 
 ■" — 
 
 
 — - 1 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 
 — — 1 
 
 
 
 160 
 
 
 
 
 
 
 
 
 
 
 
 
 _ - — 
 
 — - 
 
 - 1 
 
 
 
 mn 
 
 
 
 liS£. ... 
 
 
 
 
 
 
 
 ~— 
 
 .LSI Z'.l 
 
 
 : j 
 
 
 
 
 
 - - - 
 
 .-_ 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 — — 1 
 
 1 
 
 2B0 
 
 _ 
 
 
 - - - 
 
 
 
 
 h— 
 
 
 
 1 
 
 ___ 
 
 
 zz j 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Z -__ 
 
 _-. 
 
 
 ~z 
 
 
 300 
 
 
 
 .Lunl .-- 
 
 
 
 1^ 
 
 
 
 
 — 
 
 .is£ . 
 
 
 -» — 
 
 
 aBO 
 
 
 
 
 
 
 
 
 
 — 
 
 — 
 
 — 
 
 — 
 
 
 — 
 
 
 
 
 10 
 
 
 
 
 
 
 1 — 
 
 
 — 
 
 
 --. 
 
 
 
 400 
 
 " 
 
 
 
 
 
 
 
 
 — . 
 
 
 — — 
 
 
 
 
 It 
 
 
 
 
 ^— 
 
 
 
 
 — 
 
 
 
 
 
 
 -wtr 
 
 
 IS 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 Hon 
 
 _ 
 
 u 
 
 
 
 
 
 
 _ 
 
 
 
 — 
 
 
 
 
 — I II 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 — ' 
 
 — 
 
 
 
 
 
 
 6B0 
 
 
 1* 
 
 
 
 
 
 
 
 
 
 — 
 
 
 ~ 
 
 — — 
 
 
 
 
 
 i; 
 
 
 
 
 — T-' 
 
 
 TT" 
 
 
 — 
 
 -- 
 
 
 
 — - 
 
 
 
 SOO 
 
 
 18 
 
 .iiigz:: 
 
 
 
 1 ? 
 
 1.3-0 
 
 1'^ 
 
 
 
 — 
 
 ..tone - 
 
 
 
 — , 
 
 £.li2 
 
 
 rmn 
 
 
 19 
 
 1 — 
 
 - — 
 
 
 
 
 
 
 — 
 
 
 -._- 
 
 — - 
 
 ^ 
 
 
 
 
 20 
 
 — 
 
 
 
 
 
 
 — 
 
 
 
 — - 
 
 
 
 700 
 
 
 <l 
 
 — 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 
 
 
 
 n 
 
 — 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 . 
 
 1 
 
 9B0 
 
 
 n 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 1 
 
 AAM 
 
 
 u 
 
 — 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 1 
 
 
 
 K 
 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 1 
 
 8B0 
 
 - "L- 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 1 
 
 
 
 1 
 
 .i^is: .. 
 
 . 1 kiii 
 
 A 3fJ- 
 
 -t. 
 
 
 
 it 
 
 — 
 
 .-ietL -_ 
 
 
 — 
 
 1 
 
 l'4(>i 
 
 900 
 
 
 mI 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «» 
 
 L- 
 
 
 
 
 
 
 
 
 
 
 
 
 ""ww 
 
 
 L. 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 30 T 
 
 L. 
 
 
 
 
 
 
 
 
 
 ■ 
 
 1 
 
 
 
 .^_ 
 
 
 
 
 ,_. 
 
 
 
 
 
 
 
 1000 
 
 _ 
 
 SI 
 
 
 
 
 
 
 
 
 — 
 
 
 
 1 
 
 
 
 
 s> 
 
 
 
 
 
 
 
 
 
 - — 
 
 
 ::: — III 
 
 
 lOBO 
 
 
 ts 
 
 
 -- Zli 
 
 A uiU 
 
 3 
 
 IP 
 
 (1 
 
 t-4 
 
 
 
 -J 
 
 
 
 
 
 
 lis 
 
 A iw 
 
 l.tt 
 
 .ft 
 
 ^ 
 
 ft 
 
 
 ._ia __ 
 
 '^f ■ 
 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 17 • 
 
 
 
 1 100 
 
 
 
 
 
 
 
 
 
 
 
 --1- J- . 
 
 
 
 St 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 IIBO 
 
 
 *e 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 S7 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 1200 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 'i-ot, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I2B0 
 
 
 
 
 
 
 
 
 
 
 
 
 ■■ ' 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 i3aa 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 ■_■ 
 
 
 
 42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I3B0 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 4t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 
 
 
 
 
 
 
 
 L 
 
 
 
 
 iC^o 
 
 
 t400 
 
 
 
 
 
 
 
 
 
 
 
 
 II ■■ 
 
 
 
 45 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 lAmn 
 
 
 4( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ::: cz 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 IBOO 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 *■ 
 
 
 
 4* 
 
 -- 
 
 
 
 
 
 H 
 
 
 
 — 
 
 
 
 -:' II 
 
 \ 
 
 
 _ 
 
 
 ilfH,. 
 
 .an 
 
 4aiM 
 
 HC 
 
 13 
 
 'Fm 
 
 «m 
 
 
 »{fO 
 
 :iii 
 
 II 
 
 / .< i if 
 
 C 
 
 
«1 
 
 I \ 
 
 \\ 
 
 ; ■ f 
 
 400 
 
 
 MARCH 189 
 
 ^^ 
 
 
 NAMES 
 
 1 
 
 1 ^_ 
 
 OIIITII 
 
 
 Hllf 
 
 ORIOITI 
 
 
 m^ 
 
 ^m 
 
 „ 
 
 »'■" 
 
 
 
 ...u... 1 r.l 
 
 
 
 t.1. 
 
 
 
 
 4m*wmt$ ifattfkt f%pmmr4 1 
 
 
 
 Imu 
 
 It 1 
 
 ■••f 
 
 f ri 
 
 'mtt 
 
 t 
 
 
 
 
 
 so 
 
 9i>Q 
 
 IIkU^mul Cu^v iv*m4 (m. 
 
 [0 
 
 
 
 
 ] 
 
 /k' 
 
 (1 
 
 ^« 
 
 
 
 
 
 
 .llUi ^ 
 
 
 
 
 
 JJL 
 
 ifi 
 
 .'jv 
 
 -All 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 tool 
 
 
 
 
 
 
 
 
 
 
 
 
 I 
 
 
 
 
 »l 
 
 
 
 
 
 
 
 
 
 
 
 
 R 
 
 .1 
 
 
 
 
 
 
 
 
 
 -- 
 
 
 — 
 
 
 ItO 
 
 
 
 
 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 (f 
 
 
 
 
 
 
 
 y?^ 
 
 ..fiflX.. 
 
 
 
 
 
 >M 
 
 
 
 
 
 
 tnn ' 
 
 
 t 
 
 f .. 
 
 
 
 
 
 
 
 
 
 
 
 
 200 
 
 
 
 
 
 
 
 
 
 
 .._ 
 
 
 
 
 < 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 160 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 S^.H./^^^cL^ 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 iwf> y^6 
 
 .Ll2i .. 
 
 
 im 
 
 
 
 
 
 . -iM _ - 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 380 ^ 
 
 
 "9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 400 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IM 
 
 
 
 
 
 
 
 
 
 
 
 
 
 fl 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 B00| 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 BBO~ 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ')]\H Suc«a^ J:<ti^^>-MX 
 
 l» 
 
 
 
 
 
 ^ 
 
 Hi 
 
 t> 
 
 j£ " 
 
 
 
 
 
 _Ma^^ 
 
 Alii.. 
 
 
 
 a^ 
 
 /« 
 
 ere 
 
 M» 
 
 I," 
 
 ..icsi: 
 
 
 
 
 
 
 » 
 
 ZL .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2C 
 
 
 
 
 
 
 
 
 
 
 
 
 
 660 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 700 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 800 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 880 
 
 r%I«*i.a^ 1 SUttJ\,^ 
 
 17 
 
 
 
 
 
 iV 
 
 
 ilr 
 
 
 
 
 
 
 
 Aiii.:: 
 
 
 
 
 In 
 
 
 !•• 
 
 
 ..iea .. 
 
 
 
 
 1 1 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 80 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 yw 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1000 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 T 
 
 ftf 
 
 '1 
 
 {(1 
 
 
 
 
 
 
 
 Lisa 
 
 
 
 ilT 
 
 ifii 
 
 '« 
 
 /iM 
 
 
 i^E .. 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 w 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1199 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 HBO 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Urt Q. HujCcLn 
 
 U 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i^nn 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1280 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 1300 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 :: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 4t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1880 
 
 
 c^a*iMuX [jjjti. 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 45 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 1400 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I4S0 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^_ 
 
 
 
 „.„ 
 
 
 
 
 m-mmrn, 
 
 ___ 
 
 1 
 
 imMfi CimW rmw* 
 
 
 iiii 
 
 
 tm 
 
 •ft 
 
 !«* 
 
 •«i 
 
 mil 
 
 ■^ 
 
 > 9«* 
 
 
 
 
omoiTt 
 
 L& 
 
 L 
 
(il 
 
 -»-»■ -«■ ■:■■'"" 
 
 400 
 
 
 
 
 
 M^ 
 
 ^Y 
 
 
 189 
 
 
 
 
 ■«ai 
 
 
 
 NAMES 
 
 l« 
 
 DHITt 
 
 M. 
 
 OREDITI 
 
 
 
 ma 
 
 IIHII 
 
 4i~ 
 
 r ^ 
 
 
 jltfHW 
 
 'iizif^i^ 1 »..i«. 1 s 
 
 wn 
 
 11 
 
 
 
 n 
 
 
 
 tmn 
 
 »•< 
 
 
 >n 
 
 .^, III 
 
 
 
 
 
 
 
 
 
 
 L^ 
 
 ■^ 
 
 JrA 
 
 ___ 
 
 
 
 ~~ 
 
 ^^ 
 
 sol 
 
 <?fo 
 
 '\siXLiMM. G<Aviv*a'? tiMi. 
 
 
 
 
 
 Jil 
 
 .JiJI 
 
 Mi- 
 
 -*" 
 
 
 
 
 
 
 
 f^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -twl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^*- 
 
 
 
 
 
 
 
 
 
 911 
 
 ?ji.iU*A JKcuuAlXi 
 
 
 
 
 
 
 2rt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Tf^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 200 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 toti 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ..aifl 
 
 A ixtit 
 
 H- 
 
 <4 
 
 
 
 
 
 
 
 
 
 'fi-d 
 
 Um/<L>^A^ 
 
 .-Zis ::: 
 
 .ztxa 
 
 A//i7 
 
 t/ll 
 
 7,M 
 
 
 
 
 -iaji - 
 
 
 
 
 
 
 f -- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 / 
 
 
 
 
 
 ••- 
 
 
 
 — 
 
 
 
 
 ■^ 
 
 ■^ 
 
 1 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3B0{ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^_AKa 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 BOO 
 
 
 
 
 
 
 
 
 
 
 -- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mfl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 V 
 
 /r 
 
 lt 
 
 %^ 
 
 
 
 
 
 
 /«>ft 
 
 >^t*^ 2tt»&«. yucUAf»ji. 
 
 .ilia .. 
 
 
 
 £^At 
 
 /-M 
 
 <M 
 
 ivo 
 
 
 fi£i 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 660 
 
 
 •21 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■« .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 700 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■JJ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 il. .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 fBOi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 '<5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 WO 
 
 w .. 
 
 
 
 
 
 
 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 'il 
 
 
 
 
 
 
 
 !(> 
 
 
 
 
 
 
 850 
 
 
 ^iZnuaJ) 1 SuttJt^ 
 
 .iJJJi .. 
 
 
 
 
 
 
 ir-f 
 
 
 
 
 
 
 
 "IL .. 
 
 '^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a. .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "s« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 960 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 'n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 'St 
 
 
 
 
 
 
 1» 
 
 
 
 
 
 
 
 
 
 hlAA /^<d±. ^JtxriJtj 
 
 tfi""' 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ MBM 
 
 'S4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lUUU 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 'tS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IIOQ 
 
 ■M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "J7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IIBO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •M 
 
 
 
 
 
 ff 
 
 
 
 
 
 
 
 
 
 
 /i/» C kuXjJ^// 
 
 a sfifc 
 
 
 
 
 fm 
 
 
 
 
 d Sfi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ *vv 
 
 1 
 
 // 
 
 "S9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 >2fH 
 
 .41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 -42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I30o| 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I 
 
 /) _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T380 
 
 
 da*«vuxX. JuZtL 
 
 
 
 
 
 
 
 
 ^.. 
 
 
 
 
 
 
 -4S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 __., 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 140C 
 
 -4» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 n 
 
 -47 
 
 
 
 
 
 
 
 
 
 
 
 
 I4B0 
 
 
 
 " ~ " 
 
 
 
 
 
 
 .._.. 
 
 
 
 
 
 -48 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " " ' 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 -4» 
 
 
 
 
 
 
 
 
 
 ^_ 
 
 
 
 
 
 
 
 ■^ 
 
 \ \ "TT 
 
 ^Ii£ 
 
 ikkJ 
 
 if*** 
 
 te 
 
 rrm 
 
 r« 
 
 pan 
 
 
 .i^2S.. 
 
 
 ^ 
 
 ^B 
 
 wSfe^- 
 
CRCOITS 
 
 ^^ 
 
 mm. urn ^gl \i^ 
 
 
 ii 
 
 
 
 ' ' 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 " 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 iea : 
 
 
 
 ' 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 14—- ! 
 
 
 — — 
 
 
 
 
 
 
 
 ■ HHI 
 
 
 
 
 
 
 
 
 
 
 
 i 
 
 
 !<i . . i o< 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 '■ 
 
 
 
 
 
 
 
 7 
 
 "^' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 iga'.:::: 
 
 
 
 ■ 
 
 
 
 
 
 
 
 
 ~ 
 
 * 
 
 
 
 
 
 
 
 '■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 ■ 
 
 
 
 
 
 
 
 L....i^22...I_ 
 
 
 
 
 
 JUNE 
 
 
 189 
 
 
 
 
 
 
 400 
 
 
 i 1 DtlITt 
 
 Mm 
 
 emoiTt l O.I— — r..^u..rH y 
 
 BO 
 
 
 Ufcrrr^rrJtnSa 
 
 __ null 
 
 lU 1 I" 
 
 a«HN « 
 
 iSbt 
 
 ;.M? »U UNT 1 'OLH> 1 
 
 
 
 
 
 tmn 
 
 fit 
 
 ••fi 
 
 If* 
 
 — -- 
 
 
 ' 
 
 
 
 
 11 
 
 
 9 
 
 lilX." 
 
 
 
 .O. 
 
 * 
 
 JO. 
 
 
 
 ..2fil . 
 
 
 _ 1 > Lri.. _ 
 
 100 
 
 
 1 
 
 
 
 
 
 
 
 
 — 
 
 "■ - 
 
 
 
 
 mn 
 
 
 « 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 joa 
 
 
 4 
 
 
 
 
 
 
 <i 
 
 
 
 
 
 
 
 
 
 ..ISi .. 
 
 
 
 
 
 /lit 
 
 
 
 
 
 
 
 ■ 
 
 S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 260 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 
 800 
 
 
 
 
 
 
 , 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .iz'a. -. 
 
 
 
 ),. 
 
 
 
 
 
 ..i'» . 
 
 
 
 3B0 
 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ifl_. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 400 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 '" 
 
 480 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 }*l 
 
 
 
 
 
 
 
 
 
 
 
 ...... I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 680 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 SOU 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 
 ( 
 
 dr 
 
 &1 
 
 ^f 
 
 
 
 
 1 3*? 
 
 
 
 -iZiS-. 
 
 
 
 /■n 
 
 (•ft 
 
 In 
 
 6 VI 
 
 rl 
 
 .Aau . 
 
 
 
 
 
 19 
 
 ( :: 
 
 
 
 
 
 
 
 
 
 
 
 ( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 700 
 
 
 SI 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «« _. 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 1 
 
 7B0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «» _. 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 niiA 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 1 
 
 uw 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 Jl 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 860 
 
 
 ts 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 1 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 1 
 
 
 t1 
 
 
 
 
 
 
 ?» 
 
 
 
 
 
 It 
 
 Z<<64 
 
 900 
 
 
 .!tii£ i 
 
 
 
 
 
 V«(J 
 
 
 
 .-S ££ 
 
 
 11 
 
 
 
 l» 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 1 ||f|jk 
 
 
 s» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ll 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Pi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1000 
 
 
 ii-. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M _. 
 
 
 
 
 
 
 
 
 
 
 
 . ' 
 
 
 1060 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M _. 
 
 
 
 
 
 
 'f 
 
 
 
 
 
 
 
 
 
 ..*££_. 
 
 
 
 
 
 Iff 
 
 
 
 
 
 
 a* AJL 
 
 
 S4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ss 
 
 
 
 
 
 
 
 
 
 
 
 
 
 PI80 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 S6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 87 
 
 
 
 
 
 
 
 
 
 
 
 
 
 |I200 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 S8 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 lifift 
 
 
 
 .Has. _. 
 
 
 
 
 fat 
 
 
 
 
 .liu, 
 
 
 
 ■ JKAA. 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ ■ ' ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 1302 
 
 
 41 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 1 
 
 
 
 42 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 1360 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4S 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 -- 
 
 
 
 
 
 
 
 — . 
 
 
 
 _ 
 
 »Uo 
 
 
 
 45 
 
 
 
 
 
 ^^ 
 
 
 ™^ 
 
 
 
 
 m=' 1 
 
 
 M60 
 
 ■"■ 
 
 Jl... 
 
 
 
 
 
 
 
 1 
 
 
 
 1 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -1 
 
 
 47 
 
 — 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 1800 
 
 
 48 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 U» 
 
 
 
 
 
 1 — 
 
 
 
 _^ 
 
 
 
 __ 
 
 
 
 ^^ 
 
 
 hJi 
 
 
 i«0» 
 
 »ej 
 
 v^ 
 
 rn 
 
 ^ 
 
 
 Ll£S.. 
 
 
 
 / .< t hi 
 
 JL™- 
 
 L 
 

 1 . 
 ,1- 
 
 
 
 JULY 
 
 
 89 
 
 
 ^M 
 
 Luwa 
 
 NAMES 
 
 .i.3 
 
 P11IT» 
 
 s 
 
 ULU 
 
 Nn 
 
 EST 
 UH 
 
 ORIOI 
 
 JT . 1 ,T 
 
 TV 
 
 ffriil 
 
 m~^ 
 
 ^^^ 
 
 
 iiiMMti Imihi Ftrwri 
 
 * 
 
 
 
 4««« l« 1 
 
 •-$ 
 
 >/^^ 
 
 ^■w 
 
 1 
 
 
 
 
 " n 
 
 
 
 
 -?- 
 
 UIL 
 
 o^ 
 
 ^ 
 
 — . 
 
 
 
 
 «>2^ 
 
 
 ' 1 
 
 
 
 
 .ilil 
 
 ■M 
 
 -AM 
 
 ,4c 
 
 
 
 
 — 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' t 
 
 
 
 
 
 
 
 
 
 
 
 
 -TOO 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ DU 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 4 
 
 
 
 
 
 
 
 
 
 
 
 
 97^ 
 
 
 .i2i.. 
 
 
 
 
 
 
 
 
 
 
 H « 
 
 
 
 
 
 
 
 
 
 
 
 
 200 '^ 
 
 
 
 
 
 
 
 
 
 
 
 
 « 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 7 
 
 
 
 
 
 
 
 
 
 
 
 
 ZBoi 
 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 sinnl<?i-A 
 
 
 i?6i .. 
 
 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 ann^rH 
 
 
 
 
 
 
 
 
 
 
 
 
 .J0-- 
 
 
 
 
 
 
 
 
 
 
 
 
 3B0 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 . " .- 
 
 
 
 
 
 
 
 
 
 
 
 
 :■, 
 
 
 
 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 1 400 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 ii>n 
 
 
 
 
 
 
 
 
 
 
 
 
 .Jt .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » .. 
 
 
 
 
 
 
 
 
 
 
 
 
 i( BOOl 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 '! H 
 
 
 
 
 
 
 
 
 
 
 
 
 ; 18 
 
 
 
 
 
 a 
 
 ie 
 
 17 
 
 
 
 
 
 
 ^■^ SKu^ft^ \U.tXjiot^jL 
 
 aiS3 
 
 
 
 
 iit» 
 
 ttttt 
 
 /,n, 
 
 
 .2ic ... 
 
 
 : 19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J£S--. 
 
 
 
 
 
 
 
 
 
 
 
 
 1' 6Bo| 
 
 
 
 
 
 
 
 
 
 
 
 
 1 <i 
 
 
 
 
 
 
 
 
 
 
 
 
 '■ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 i K -. 
 
 
 
 
 
 
 
 
 
 
 
 
 1 '°°i 
 
 
 
 
 
 
 
 
 
 
 
 
 iJS -- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 WM 
 
 
 J «♦ .. 
 
 
 
 
 
 
 
 
 
 
 
 
 reo 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,( 
 
 J «» .. 
 
 
 
 
 
 
 
 
 
 
 
 
 800 
 
 
 
 
 
 
 
 
 
 
 
 
 J *• .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a " .. 
 
 
 
 
 
 
 If 
 
 
 
 
 
 
 > 860 
 
 etCyviA.A^ 1 SU^LK^ 
 
 J jlA .. 
 
 
 
 
 
 Hmi 
 
 
 
 
 
 I 
 
 J »« -- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 V 
 
 
 
 
 
 
 
 
 
 
 j" .. 
 
 
 
 
 
 
 
 
 
 
 
 
 1 ■■WW ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 a3«-. 
 
 
 
 
 
 
 
 
 
 
 
 
 i "° 
 
 
 
 
 
 
 
 
 
 
 
 
 Ill 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 w 
 
 
 
 
 
 
 
 
 
 
 
 
 1 1000 
 
 
 
 
 
 
 
 
 
 
 
 
 <n 
 
 
 
 
 
 » 
 
 »•■> 
 
 !•» 
 
 •la "■ 
 
 
 
 
 1 
 
 
 iJtjAi 1 A./tTt S^ Hjf^ k . 
 
 .2ii.. 
 
 -i^ 
 
 iifitf 
 
 ^ 
 
 k 
 
 ^ 
 
 -^ 
 
 ^ .. 
 
 .i^... 
 
 ..U A 
 
 R tW>0 
 
 
 
 • M 
 
 
 
 
 
 
 
 
 ■^ 
 
 
 
 
 »te 
 
 
 
 
 
 
 
 
 
 
 
 
 J IIOO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 > w 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » « 
 
 
 
 
 
 
 
 
 
 
 
 
 1 IIBO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Imv Q. hujCtAx// 
 
 tl ili . . 
 
 
 
 
 
 
 
 
 
 
 » w 
 
 
 
 
 
 
 
 
 
 
 
 
 a TXvv 
 
 
 // 
 
 
 
 
 
 
 
 
 
 
 
 
 
 440 
 
 
 
 
 
 
 
 
 
 
 
 
 i^n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Si 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 s« 
 
 
 
 
 
 
 
 
 
 
 
 
 1300 
 
 
 
 
 
 
 
 
 
 
 
 
 
 % 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 *4« 
 
 
 
 
 
 
 'if 
 
 
 
 
 
 
 looV 
 
 
 
 
 .((^ 
 
 A2aJt 
 
 
 
 ^ 
 
 
 
 
 
 i^fin 
 
 
 
 *« 
 
 
 
 
 ~ 
 
 
 
 
 — 
 
 
 
 
 
 
 
 ^^^^ 
 
 
 
 
 ~ 
 
 
 
 
 z . 
 
 
 
 •m^^ 
 
 I4B0 
 
 
 ♦• 4T 
 
 
 
 
 
 
 
 
 ^" 
 
 
 
 
 
 1 
 
 
 « M 
 
 
 
 
 
 
 
 
 ■" 
 
 
 
 , ^ 
 
 
 
 - i!^.. 
 
 
 
 
 
 — 1 
 
 
 
 ^ 
 
 
 
 — 
 
 1 
 
 
 4/»iiii(i CirnW rtrmari 
 
 -JU 
 
 iq w,uiiiiR wm mmmTM im'm iii 
 
 .,^- 
 
 i' 
 
 
 
 
 
,,(, 1 1. j I - I' - >l« 
 
 ) 
 
 
 
 ORIDITt' 
 
 
 
 m«L«RM' 
 
 
 
 f 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 • 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — ' 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 ' 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 ' " 
 
 — 
 
 
 
 
 
 
 
 
 E 
 
 
 
 E .1^ 
 
 
 
 
 
 h 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 iA 
 
 
 
 U A. 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 - — 
 
 
 
 
 
 
 
 
 
 
 - — 
 
 
 
 
 
 " ^^ r 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - — 
 
 
 
 
 
 — 
 
 
 
 
 
 - — 
 
 
 
 i'.'.'.'.z 
 
 
 ■ — 
 
 t ::::i 
 
 
 
 
 '■iinisiiiiiTa 
 
 
 
 
 AUGUST 
 
 
 1 
 
 89 
 
 
 
 
 
 i 
 
 DItlTS 
 
 IH. 
 
 eniDiTt 
 
 
 f "BS 
 
 mLST ~m 
 
 MMMk 
 
 Ml 
 
 
 ? 1- 
 
 ■tUW M 
 
 am 
 
 > •» 
 
 
 
 
 
 i«M 
 
 III. 
 
 -f 
 
 f A 
 
 '■W 
 
 F 
 
 
 
 
 
 
 
 
 
 
 
 ** 
 
 IX 
 
 li' 
 
 
 
 
 
 
 f lAx 
 
 
 
 iTO 
 
 iff 
 
 ifr 
 
 ,ifli 
 
 
 . IfiB _. 
 
 
 
 
 1 
 
 ■ ~ ■ 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » _. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .Lad -. 
 
 
 
 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 .liUl _. 
 
 
 iCan 
 
 
 
 
 
 
 
 
 
 * 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 18 
 
 
 
 
 '4 
 
 rr 
 
 f7 
 
 U 
 
 
 
 
 
 
 -iiiX _. 
 
 
 
 ^v• 
 
 ^tlW 
 
 /L, 
 
 lin 
 
 
 
 
 
 
 19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 SI 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «7 
 
 
 
 
 
 r 
 
 
 
 a." 
 
 
 
 
 
 i f 3S 
 
 
 
 
 2iM 
 
 
 
 
 Lea" 
 
 
 
 
 ts 
 
 ~ ■ 
 
 ■ , 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 ' ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 f7 
 
 •V 
 
 ■J7-" 
 
 
 
 
 
 -2/a _. 
 
 
 
 All 
 
 
 \L 
 
 ffl 
 
 /t 
 
 iSi 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 ■ IM 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 W 
 
 
 
 
 
 
 
 
 
 
 
 
 
 > tee" 
 
 
 
 
 
 
 
 
 iiia. . 
 
 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 1 
 
 f 
 
 »S 
 
 
 2Z "■ 
 
 
 
 
 
 
 
 
 L,«a 
 
 All 
 
 
 
 
 
 
 
 
 4» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i'Xj 
 
 
 ilM* 
 
 he, 
 
 rr/* 
 
 f.. 
 
 ran 
 
 
 JifO 
 
 
 
 m 'zi RIWARK* 
 
 -^. 
 
r 
 
 , !. 
 
 :i 
 
 400 
 
 
 SEPTEMBER 189 
 
 
 nM 
 
 * 1 OIIITS 1 tui 1 
 
 OMDITt 1 
 
 ^~ 
 
 n^rlu 
 
 
 
 i? — 
 
 
 
 
 Mm9MnU irtnghi ftrmar^ 
 
 4aMl 
 
 iLi^SS 
 
 -'-f J 
 
 
 
 
 "9fo 
 
 l^>:ah:MM.G^A,yi^^'lt^ c/.ii 
 
 
 u- 
 
 
 
 .Lb. 
 
 ^.....iS 
 
 
 
 / 
 
 f 1 ^ 
 
 
 
 
 
 
 — 
 
 
 
 100 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t 
 
 
 
 
 
 
 
 
 
 ivo| 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «?71 
 
 
 
 
 
 
 
 
 
 
 // 
 
 ' 5 
 
 
 ' 
 
 
 
 
 
 
 
 200 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 , 
 
 
 
 "ZBO 
 
 
 n ' ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■*«■_ 
 
 _aaa 
 
 ?i-(l 
 
 U.H.l^Ly^cUo^ » ,iU 
 
 
 
 
 
 
 — 
 
 
 
 
 / 
 
 ^ % 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^^^ 
 
 3B0 ' 
 
 10 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 40U 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IS 
 
 
 
 
 
 
 
 
 
 -410 
 
 
 
 
 
 
 
 
 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 ^ ■ 
 
 
 ' ' 
 
 
 
 
 
 BOO 
 
 
 
 
 
 
 
 
 16 
 
 
 
 
 
 . .. 
 
 
 
 
 
 
 
 
 T 
 
 
 BBOl 
 
 K 
 
 
 
 
 
 D 
 
 
 
 
 
 
 
 
 T 
 
 
 
 yh*ii 2iaa<u<. yucdM-txs, w ^jM 
 
 
 7 
 
 ^*rf 
 
 
 ik 
 
 
 
 
 -MO /<»& 
 
 
 f.'/irt 
 
 
 
 i*i 
 
 iu 
 
 
 
 19 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 660 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 |] 
 
 
 
 700 
 
 n 
 
 D 
 
 
 
 
 H 
 
 
 
 
 ■ 
 
 
 
 
 ll 
 
 
 
 
 tt 
 
 n 
 
 
 
 
 _Jj 
 
 
 
 -teo 
 
 
 n 
 
 
 
 
 ll 
 
 
 
 
 (4 
 
 
 
 
 
 H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 800 
 
 
 
 
 
 
 
 
 
 
 -, «• 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8S0 
 
 }fZnu.OuD ILuUtJa 17 ^0^^ 
 
 
 
 
 
 ^t 
 
 
 
 
 
 
 
 
 
 ;tv 
 
 , - ' fle 
 
 
 
 
 ' 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 j| 
 
 
 
 
 
 
 _| 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 990 
 
 
 
 
 
 
 
 
 
 
 
 tt 1 
 
 ■ ■ f 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 1000 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 )j<iA4. Q<tZl^ CfjLo^j M ij £j 
 
 It 
 
 
 /*tf 
 
 ■■1. 
 
 *K 
 
 
 
 
 MMIA 
 
 (1 
 
 
 y.*-. 
 
 I> 
 
 itir 
 
 2si 
 
 
 
 
 
 ' U 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 _i 
 
 
 
 |I00 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 HBO 
 
 
 17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tt^ ll. kuXiA,/( M jj^ 
 
 
 1 ' 
 
 
 
 
 
 
 
 l-»AA 
 
 
 mir 
 
 
 
 
 iSi 
 
 
 
 
 / l» 
 
 
 1 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 40 
 
 
 
 ■" 
 
 ■'" 
 
 
 
 
 I2B0 
 
 ■ 
 
 
 
 
 
 
 
 
 
 41 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1300 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1880 
 
 
 /) _ 4t 
 , — - 
 
 
 
 
 
 _ 
 
 — 
 
 
 
 140a 
 
 
 ^ .4* 
 
 1 
 
 LAd 
 
 ItJL 
 
 .LC 
 
 m1 i fli 
 
 
 — 
 
 
 
 41 
 
 
 
 
 
 
 
 
 
 1480 
 
 
 • 47 
 
 
 
 
 
 
 
 
 
 
 • in 
 
 
 ^~" 
 
 
 
 .— 
 
 «. 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 — 
 
 
 
 
 4min>( Ctrriti r»rwu^ , 1 M « 7< 
 
 
 If 
 
 
 if 
 
 •M 
 
 ' (S^ 
 
 t 
 
 
 
 
 
 
 
 
 
 
 
 
 
i89 
 
 >R EDITS 
 
 ■M 
 
 miiUM iS 
 
 TIT'ts: 
 
 
 
 
 
 
 
 
 I 2 a 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ ■■■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 : ::: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 itM. ..'. 
 
 
 
 
 
 
 ~l 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -1 " --- 
 
 
 
 ZL 
 
 
 
 -J " ::; 
 
 
 ■ 
 
 ZL : 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ ■HI 
 
 
 
 
 """ ::: 
 
 
 
 ll 
 
 
 
 -J 
 
 
 
 T 
 
 
 
 
 
 
 iaa ... 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i££ ::: 
 
 
 
 ZD : : 
 
 
 
 ZL 
 
 
 
 -t 
 
 
 
 ZL 
 
 
 
 -J . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2 ... '■az'.'.'. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i iS'o 
 
 
 
 
 _l'' l > l l»l l 
 
 OCTOBER 189 
 
 
 400 
 
 
 i 
 
 ^OlilTS 
 
 sasa- 
 
 
 CRIDITt 
 nMufiT 1 nwcw 1 a 
 
 m 
 
 [7 Balance Fo'w^rd 1 
 
 
 
 
 SIIL 
 
 Mmui t ll 
 
 •«« 
 
 f» 
 
 «■-■ 
 
 
 
 
 *u 
 
 U«|T^ 
 
 roLio 1 9U 
 
 
 
 
 
 
 
 1, 
 
 tfi 
 
 /tf 
 
 lit 
 
 12. 
 
 
 
 
 
 
 j.i£. '" 
 
 
 
 fQ 
 
 •Bl 
 
 
 ■fn 
 
 ,h 
 
 .2 JB -. 
 
 
 
 LLi^ 
 
 
 inn 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lUU 
 
 
 S 
 
 
 
 
 
 
 
 
 
 
 
 ll 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 4 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 Id^ ' 
 
 
 
 5 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ZBO 
 
 
 ( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 300 
 
 
 8 
 
 
 
 
 ,r 
 
 
 
 
 1 
 
 
 
 
 
 
 
 iKJZ 
 
 
 i'et 
 
 
 
 
 
 __ 
 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 
 
 ^70/ 
 
 3B0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 400 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 480 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 u 
 
 
 ■** 
 
 
 
 
 
 
 
 
 
 11 
 
 Hon 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 15 
 
 
 
 
 
 
 
 
 
 
 
 ll 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 BBC 
 
 
 16 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 ~ " 
 
 
 , 1 
 
 
 
 
 
 IT 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 600 
 
 
 IS 
 
 
 
 
 
 
 
 'fi 
 
 
 
 
 y 
 
 
 
 .llfS.'.'. 
 
 
 
 
 '.rr 
 
 /'t. 
 
 ^••i 
 
 
 
 
 II 
 
 L\ia. 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 fiBO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ - '■f 
 
 
 
 
 20 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 700 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 .,._. 
 
 II 
 
 
 
 
 U 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 " 
 
 
 
 
 
 
 '" 
 
 
 
 
 
 7B(t 
 
 
 (t 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 1 
 
 
 
 fi 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 AAA 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 ■^ 11 
 
 
 
 
 
 
 
 
 
 
 "■■ 
 
 
 
 ^ II 
 
 
 
 8B0 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 ""■ y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 1Y 
 
 
 
 
 
 
 
 .i}ii. '.'. 
 
 
 
 
 
 
 iff 
 
 
 
 
 
 ^-fd 
 
 
 900 
 
 
 w 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 — « 
 
 — 4IIA 
 
 
 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 
 
 
 30 
 
 
 
 
 
 
 
 
 
 
 
 ^" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — ., 
 
 
 
 1000 
 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 ^*" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 o^ 
 
 
 
 " ' 
 
 
 
 
 
 
 
 """ 
 
 
 
 
 
 
 lOBO 
 
 
 n 
 
 
 
 
 i, 
 
 f^ 
 
 lo 
 
 i4 
 
 
 
 
 
 
 
 ..lifii: 
 
 
 
 J» 
 
 #■» 
 
 •rr 
 
 i7tf 
 
 
 . J »i 1 1 
 
 " ^ 
 
 A. 
 
 
 
 
 
 u 
 
 
 
 
 
 
 
 f 
 
 
 
 
 
 .KMA- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TI "■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■.IP 
 
 
 
 ^" 
 
 
 
 ilBO 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 ■—a 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 
 —^ 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 "■^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — ^ 
 
 
 1200 
 
 
 ■R"" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 UTi 
 
 
 
 
 .._ 
 
 yax "' 
 
 
 ""■ 
 
 ..5ce 
 
 
 
 
 t» 
 
 
 
 
 
 
 
 
 
 
 
 ""■ 
 
 iMyi 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 
 40 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 i3aa 
 
 
 
 
 
 
 
 
 
 — 
 
 — 
 
 
 — 
 
 — 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 — 
 
 
 
 I3B0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,' 
 
 
 
 
 
 
 PrrllT 
 
 
 
 Um*. 
 
 
 
 
 iji. 
 
 
 
 — 
 
 xi4o 
 
 
 1400 
 
 
 U 
 
 
 
 
 
 
 
 id 
 
 — 
 
 
 
 — ' 
 
 
 
 %»mn 
 
 
 u 
 
 
 
 
 
 
 
 
 — 
 
 
 
 Zi 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 ._ 
 
 — 
 
 
 
 ^ 
 
 
 
 IBOO 
 
 
 M 
 
 41 
 
 
 
 
 
 
 
 
 ^~ 
 
 
 
 — 
 
 
 
 
 
 
 !^^.. 
 
 Mi 
 
 tmm 
 
 Id 
 
 WM 
 
 r»r 
 
 i*r4 
 
 "" ■ 
 
 i$ir 
 
 TTK 
 
 _ 
 
 1 .« u if 
 
 
 —- 
 
 ^fj, * '^-MM ^ -* - -^^' ' "- -.Hw gBWwwrwi Wi.mi ' * ii 'W.<**ffO i' iii>"!. i -M ^ i ' *iw'-4-. 
 
 ! . > j. i ^ a-- ^ '*' ' '*^ V" <5*- yi i i^ <i « >C! ft i^<* ^ yWiHg t t» - ! ' > *>■ i ^ i ^ 
 
\ 
 
 Jl 
 
 ■ 
 
 ■"^IT""^ 
 
 400 
 
 uacu'4 
 
 NOVEMBER 189 
 
 ^ 
 
 ^sk 
 
 -not 
 
 -uol 
 
 200 
 
 ^ 
 
 TBOt 
 
 ann )?>-6 
 
 3B0| 
 
 lXKttt'<t44>. (3vtv^<.^wq t<m. J2. . 
 
 -wot 
 
 -4B0| 
 
 NAMES 
 
 tmiimtt Intiht ftrmi^ 
 
 r 
 
 1-j^ouJk KaiAUiixt i _ 
 
 'pi./^o^cLu^ 
 
 soon 
 
 TWf 
 
 -600^ 
 
 loci 
 
 660 
 
 700 
 
 -WO 
 
 800 
 
 8sog 
 
 -WW 
 
 l%rt Su^a<<- ?Ua^.t>-MA 
 
 }t!i,AAaJ> (JMUfJa 
 
 ■sm 
 
 looog 
 
 Mse 
 
 UM 
 
 IIBOD 
 
 tioof 
 
 12B1U 
 
 \ 1300 
 
 tsBtr 
 
 uoa 
 
 I4B0 
 
 I/JJUA^ /^<til^^JVO-i^ ^ , 
 
 L^ Q yuAXjtA.// M 
 
 i: 
 
 41 
 4t 
 
 t 
 
 Ol*ma<xX- 
 
 J^ J* • 
 
 'trrittjtfwnt 
 
 i 
 
 1 ^^ 
 
 OIlITt 
 
 
 ORIDITt 
 
 
 
 
 i4 
 
 
 
 fM 
 
 Hifr 
 
 ■MM 
 
 ijr 1 IffiLUM 1 s 
 
 MCL 
 
 ii 
 
 
 
 
 
 4fm«A 1 #/ 
 
 'T* 
 
 rw 
 
 bMM 
 
 
 
 
 
 
 
 
 
 
 fv 
 
 
 v 
 
 
 
 
 ' 
 
 ' " 
 
 ^ 
 
 
 
 
 •I'f 
 
 ifi? 
 
 7« 
 
 J-p 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 II 
 
 ■ 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 '■ 
 
 _L ... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 ■ 
 
 '■ 
 
 » ... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 ♦ ... 
 
 .IQi ... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 s 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 « 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,r 
 
 
 
 ill 
 
 
 
 
 
 " 
 
 s 
 
 L LCZ 
 
 
 
 faa 
 
 
 
 J'fll 
 
 
 i*fi£ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 » 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 iiL 
 
 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 
 
 
 
 uU 
 
 
 
 
 
 
 
 
 
 
 
 
 
 H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 15 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 it 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1«|| 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 llH 
 
 
 
 
 
 
 
 
 
 
 
 
 it 
 
 
 
 1 
 
 
 {^ 
 
 l\ 
 
 
 
 
 
 
 1« 
 
 Liia 
 
 
 
 
 
 (ttl 
 
 
 iu """ 
 
 
 
 
 
 ■■f f — 
 
 
 
 
 
 
 
 
 
 
 
 I* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2C 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 >S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t< 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 tl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 te 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 */ 
 
 
 
 
 
 1 
 
 »7 
 
 1^^ 
 
 i.ifl 
 
 A .142^ 
 
 
 ?■>■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ts 
 
 
 
 
 
 
 
 
 
 fl 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3d| 
 
 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 — r~ 
 
 
 11 II 
 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 
 
 
 
 n 
 
 
 II 
 
 
 
 
 
 
 
 
 
 ii 
 
 
 tt 
 
 
 
 
 
 
 
 
 
 
 "n 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 16 
 
 
 
 
 
 
 
 
 „ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 S7 
 
 
 I 
 
 
 
 
 
 
 
 
 18 
 
 
 
 i ^ 
 
 
 
 
 
 
 
 
 L^QA 
 
 
 
 
 
 
 
 i^" 
 
 
 
 19 
 
 
 
 f 
 
 
 
 
 
 
 
 ' 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 4( 
 
 
 
 II 
 
 
 
 
 
 
 
 
 41 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 "• 
 
 
 
 
 
 « 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 . 
 
 
 
 
 /•^ 
 
 vn 
 
 
 
 
 
 
 
 uu : : 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 4« 
 
 
 
 1 
 
 
 
 
 
 
 ::: 1= 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4S 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4l 
 
 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 
 \I<A 
 
 ..i2S 
 
 4m« 
 
 Ht 
 
 m« 
 
 rr« 
 
 mn 
 
 
 I Too 
 
 
 
 
 1: 
 
? i89 
 
 w^mrmtm^tm^ 
 
 OMoira 
 
 
 AM 
 
 It ICTat CMN 
 
 ■Tfffr^^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 ' ■ 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 ■III ^ 
 
 
 
 ■ 
 
 
 
 . 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 ' ^^ 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 ■ ^ 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 n 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 '■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 ■■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 '^^ 
 
 
 
 
 
 
 
 
 
 
 
 
 ' 
 
 
 ll^ 
 
 
 
 II 
 
 
 {jM 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 "* 
 
 
 
 " 
 
 
 
 " 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 - 
 
 
 
 
 Ml t. F 00 
 
 
 
 DECEMBER 189 
 
 ijti-aaa 
 
 400 
 
 
 * 1 0...T. 1 
 
 UUI 
 
 CRIOITt 
 
 
 BO 
 
 
 Ullii^iiJjJJLiai 
 
 ■• 
 
 "1 
 
 J-C II.. 
 
 . .« 
 
 *tfOU«T 1 
 
 VOLIO 1 
 
 
 
 
 
 SmtuK t §1 
 
 •f* 
 
 r* vf^^ 
 
 
 1 
 
 
 
 
 
 J 
 
 11 
 
 
 
 
 i 
 
 111" 
 
 
 
 [f_ 
 
 
 
 
 ( ! £»Y 
 
 i 
 
 165 
 
 o| 
 
 HOC 
 
 
 
 .Jii 
 
 .^u 
 
 >til 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 [ 
 
 
 
 — 
 
 
 1 1 
 
 
 
 
 
 
 
 
 y 
 
 
 
 11 
 
 
 
 
 
 
 
 
 It 
 
 
 
 
 
 190 
 
 t H 
 
 
 
 1 
 
 
 
 
 
 y 
 
 
 
 
 
 
 Q 
 
 
 
 
 
 il 
 
 n 
 
 
 
 
 
 1 II 
 
 
 
 
 
 
 
 
 y 
 
 1 
 
 1 
 
 MQ 
 
 '■ ' n 
 
 
 
 
 
 
 
 
 nf 
 
 n 
 
 1 
 
 iOi' ' 
 
 
 4 U 
 
 
 
 
 
 
 
 
 r 
 
 II 
 
 
 If 
 
 
 
 
 
 
 
 
 n_ 
 
 if 
 
 1 
 
 
 
 260 
 
 t 
 
 
 
 
 
 
 
 
 [r 
 
 n 
 
 
 
 
 
 
 
 
 
 It 
 
 It 
 
 1 
 
 
 
 
 • 
 
 
 
 
 
 
 
 _ 
 
 II 
 
 
 
 1| 
 
 
 
 
 
 
 
 D 
 
 II 
 
 
 
 
 — 
 
 300 
 
 1 1] 
 
 
 
 
 
 
 
 
 [r 
 
 
 
 1 
 
 
 
 
 r 
 
 
 
 
 .5Zl__ 
 
 
 
 
 
 
 
 .J.ISL ... 
 
 
 
 i:<i< 
 
 
 
 
 3B0 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 
 
 
 y 
 
 It" 
 
 B 
 
 
 
 
 
 la .. 
 
 
 
 
 
 
 n 
 
 
 II 
 
 
 
 
 400 
 
 
 
 
 
 
 
 y 
 
 
 
 
 11 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 It 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 i 
 
 
 
 
 (1 
 
 
 
 
 
 IS 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ron 
 
 
 " .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 15, .. 
 
 
 n 
 
 
 
 
 
 
 
 
 
 . . . 
 
 
 
 
 
 n 
 
 
 
 
 
 — 
 
 
 
 660 
 
 
 i« 
 
 
 y 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 ] 
 
 
 
 
 y 
 
 
 
 
 
 
 17 
 
 
 1 
 
 
 
 
 11 
 
 
 
 
 
 
 
 6DU 
 
 
 
 n 
 
 
 
 
 n 
 
 
 
 
 
 
 18 
 
 
 
 M 
 
 11 
 
 
 H 
 
 
 
 
 
 Lii^ 
 
 
 
 
 .CLU -- 
 
 
 '/yo 
 
 
 ^■f^ 
 
 
 1 
 
 .laa. ... 
 
 
 
 fan 
 
 
 10 
 
 ^ 
 
 
 
 
 
 
 R 
 
 
 
 
 
 T 
 
 
 
 
 
 
 
 
 
 
 H 
 
 vT 
 
 
 
 
 
 20 
 
 
 
 
 
 
 
 ft 
 
 [1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 H 
 
 [r 
 
 
 
 700 
 
 
 iL .. 
 
 
 
 
 
 
 
 If 
 
 
 
 
 , 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a. .- 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 7B0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4 
 
 
 
 
 
 
 
 
 
 
 
 
 wv 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3L .. 
 
 
 
 
 
 
 
 
 It - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 080 
 
 
 «« .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 il .. 
 
 
 
 
 
 »5 
 
 
 
 
 
 
 1 
 
 liki 
 
 
 ioo 
 
 
 i.t Ui 
 
 
 
 
 
 V'lV 
 
 
 
 .Isa. '.'. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■■ [_ 
 
 Aan 
 
 
 iS. .. 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 99 
 
 
 
 
 
 
 
 
 _i 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 1 
 
 
 
 
 1000 
 
 
 JL . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3L 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1060 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3L .. 
 
 
 
 
 
 
 
 
 
 
 
 1 III 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■.•MM 
 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 »* .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1190 
 
 
 M .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 »' .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IZOO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 w .. 
 
 
 
 
 
 
 
 
 
 
 
 
 ..iet 
 
 
 
 ' 
 
 L 2 £fi 
 
 
 
 Tmi 
 
 
 
 
 
 s opir 
 
 
 
 
 
 i2. .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■sou 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 42 .. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 lauo 
 
 
 41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 il 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1380 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 44 
 
 / . . 
 
 
 
 
 (t 
 
 J-f 
 
 
 
 Ae^Z: 
 
 
 — 
 
 
 ii4o 
 
 
 tAOO 
 
 
 .t 1 B£ -■ 
 
 
 
 ^■> 
 
 Ulu 
 
 /iff 
 
 
 
 
 
 4fi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4480 
 
 
 4( 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - — — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IBOO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 4t 
 
 
 
 
 
 
 
 
 — 
 
 
 
 — 
 
 
 
 
 
 
 IUJ5 
 
 
 tmt 
 
 •II 
 
 •m 
 
 ^f 
 
 rww 
 
 1 
 
 ^tfo 
 
 
 
 
 / 5 i 35J 
 
 ^ 
 
 ) i 
 
 I M 
 
 !i 
 
 (M 
 
ki 
 
 i ' 
 
 fi 
 
ACCOUNTING SYSTEM 
 
 120 
 
 course until the month of May is reached. At this time the bal- 
 ance has been reduced to $6.75, when he buys some more goods, 
 as evidenced by sales Nos. A 1,137 for $16.10, and A 1,204 for 
 $2.80. He pays $3 down and also $2 on account this month, 
 making a tot il credit of $5. This is subtracted from the total of 
 the balance and the two bills which he has bough' . leaving $20.65, 
 with which the account is opened in June. His account now pro- 
 ceeds in regular course until September is reached, with a balance 
 ol $12.65. No payments are made in September, and this 
 amount, therefore, is carried forward into October. In October 
 he buys goods amounting to $74.36, as evidenced by sales No. A 
 2,929, and pays on account this month $5, making a balance of 
 $82.01, with which the November account is opened. In Novem- 
 ber he pays $10, making his December balance $72.01, and in 
 December he pays $5, leaving a balance of $67.01 to be carried 
 forward to the new ledger. 
 
 There are no new features presented in Mrs. Malone's ac- 
 count that need to be specially pointed out in this description, 
 unless it be that in January three bills of goods were charged to 
 her account. It will be seen that while the ruling of the ledger is 
 mtended ordinarily to accommodate only two charge entries per 
 month, three have been crowded into the column in this case. 
 Mrs. Malone's account proceeds with commendable regularity in 
 the matter of payments and is reduced to $13.89 at the close of 
 December, which amount carries forward into the new ledger. 
 
 Thos. Byers commences to deal with the concern in January, 
 and makes a bill, first of $24.50, as evidenced by sales No. A 30, 
 and afterward, finding that he requires a few more goods, buys to 
 the amount of $6.60, as shown by sales No. A 149. He makes two 
 payments during the month, amounting to $3-75, carrying forward 
 a balance of $27.35 into the February account. He buys addi- 
 tional goods to the amount of $34, in February as shown by sales 
 
 il 
 
 \i- 
 
 M 
 
 mat 
 
r 
 
 titm)ti»* I ' ' 'II" 
 
 \ 
 
 f! 
 
 i 
 
 180 
 
 THE SELF-PROVING 
 
 No. A 355. He makes three payments in this month, amounting 
 to $6, and carries forward a balance into the March account of 
 $55.35. From this time forward his account proceeds with con- 
 stant reductions, leaving a balance at the close of October of 
 $24.35. In November he buys an additional bill of $6.30, as evi- 
 denced by sales No. A 3,326. His account at the close of the year 
 stands $24.65, which amount is carried forward to the new ledger. 
 
 Miss Lettie Gross comn.ences to deal with the establishment 
 in February and opens her account with two items, a bill of $13.50, 
 as shown by sales No. A 399. and a bill of $7.25, as evidenced by 
 sales No. A 414. She pays $1 down, and pays, according to agree- 
 ment, 50 cents per week, making a total credit of $2.50. For some 
 reason the second bill of goods was returned, and this is evidenced 
 by the amount in the Sundry Credit column, with the explanatory 
 letter "G" in the column alongside. The balance carried forward 
 into March is $1 1. The account proceeds from this date forward 
 without variation from the usual course until the month of July, 
 when an additional bill is bought amounting to $7.60, indicated 
 by sales No. A 2,065. In this month a special allowance of 25 
 cents is made for some reason or other, and this is posted in the 
 Sundry Credit column, with the explanatory letter "A." The 
 credits in total are subtracted from the sum of the balance and the 
 purchase made, giving $7.10 as the amount with which the Au- 
 gust account is opened. Payments now proceed in regular 
 course until the 26th of October. It is then found that her in- 
 debtedness amounts to $1.10. According to the custom that 
 prevails in certain instalment establishments, a discount is made 
 with the final payment, as an evidence of the good will of the pro- 
 prietor and because payments have been made with reasonable 
 promptness. This customer, accordingly, is told that 75 cents 
 paid at this time will close the account. This amount is forth- 
 coming, making the total cash credits for the month $2.25. The 
 
 r 
 
 % 
 
1 
 
 ACrouXTlNG aiSTEM 
 
 181 
 
 , amounting 
 I account of 
 Is with con- 
 October of 
 56.30, as evi- 
 e of the year 
 new ledger, 
 fitablishment 
 )ill of $13.50, 
 evidenced by 
 ing to agree- 
 ). For some 
 , is evidenced 
 ; explanatory 
 rried forward 
 date forward 
 onth of July, 
 60, indicated 
 jvvance of 25 
 posted in the 
 ■ "A." The 
 lance and the 
 hich the Au- 
 ;d in regular 
 i that her in- 
 custom that 
 ;ount is made 
 ^ill of the pro- 
 th reasonable 
 that 75 cents 
 ount is forth- 
 h $2.25. The 
 
 deduction of 35 cents is posted to the Sundry Credits column, 
 thus closing the account. Blank spaces in the monthly divisions, 
 it will be seen, follow Miss Gross's name from this date forward 
 to the end of the year. 
 
 W. J. Mitchell commences to deal with the establishment in 
 April, buying a bill of goods at that time of $45, evidenced by 
 sales No. A 869. His account is commenced in the April division, 
 just the same as the other accounts we have described have been 
 commenced in the other monthly divisions. Payments are made 
 in regular course, with the result that the account at the close of 
 December has been reduced to $5, which balance is carried forward 
 to the new ledger. * 
 
 Samuel Tutty begins to deal with the concern in July. The 
 first charge to his account is a bill of $54.60, evidenced by sales No. 
 A 2,059, which is posted in the July account, the same as the other 
 accounts that we have described have been posted in other 
 months. 
 
 We have limited our examples to eight accounts, which for 
 better display and convenience in examination have been dis- 
 tributed through the depth of a page, instead of occupying eight 
 consecutive Hues, as would be the case in actual practice. We 
 ha\'e selected the accounts for the purpose of showing the usual 
 method of using the ledger, and illustrating how special credits, 
 additional charges for goods, &c., are to be made. As we have 
 proceeded with our explanations the reader has undoubtedly no- 
 ticed that the dates in the month on which payments are made 
 are written directly above the items in the space provided for the 
 same by the interlining. The reader has also noticed, we pre- 
 sume, that there are provided spaces for two items in Sundry 
 Credits each month, the same as for two charges each month. 
 These allowances of space have been found in practice to be quite 
 sufficient for the requirements of ordinary instalment estabUsh- 
 
 fmMiii»ii<^ 
 
 ^ iiiiiwimiiiniii 
 
132 THE SELF-PROVINO 
 
 ments. but variations can be made as required to meet the neces- 
 sities of special cases. 
 
 The correctness of the instalment ledger is proved as fol- 
 lows :-By footing the column devoted to Balances Brought For- 
 ward into the January account, we find the total is $69.59- The 
 goods charged to customers during that month, which is ascer- , 
 tained by footing the Merchandise column, amounted to $89.85. 
 The Cash credits to the several accounts amounted to $22.75, and 
 the sundry credits $1. The latter amounts are also determined by 
 footing the columns devoted to these items. By taking the total 
 of the Balances brought forward, adding the Merchandise 
 charged and subtracting the total of the Credits, we have $1 35-69 
 as the amount of the balances carried forward into the month of 
 February. Footing the balance column with which the February 
 account is opened, we find that the sum of the balances is also 
 $135.69, which is satisfactory evidence that the ledger has been 
 correctly footed, and that the individual balances have been cor- 
 rectly struck and correctly carried forward. 
 
 By comparing the total of the charges to customers, $89.85, 
 with the amount sold to instalment customers, as shown by the 
 Sales Record for the month, we shall ascertain whether or not the 
 correct amount has been posted to the ledger. Again, by com- 
 paring the total cash credits posted to instalment customers' ac- 
 counts, in this case $22.75. with the debit side of the Cash Book 
 for the same period, we shall know whether all of the cash re- 
 ceived has been posted. 
 
 If interest had been posted to the customers' accounts during 
 the month, then the interest items, in proving the ledger, would 
 have been put into an amount by themselves for checking with the 
 total of the charge for interest in the journal, or wherever the 
 entry was made. In the same way sundry credits would be 
 analyzed and separated into amounts corresponding with the items 
 
 
;t the neces- 
 
 oved as fol- 
 Irought For- 
 ;69.59. The 
 lich is ascer- 
 ;d to $89.85. 
 3 $22.75, and 
 etermined by 
 :ing the total 
 Merchandise 
 have $135.69 
 the month of 
 the February 
 lances is also 
 [ger has been 
 ave been cor- 
 
 )niers, $89.85, 
 shown by the 
 her or not the 
 gain, by com- 
 ;ustomers' ac- 
 he Cash Book 
 if the cash re- 
 
 xounts during 
 ledger, would 
 eking with the 
 ■ wherever the 
 dits would be 
 • with the items 
 
 • v* - 
 
 ACCOUNTING SYSTEM 
 
 133 
 
 that are posted into this coUtmn-namely, Allowances. Bad 
 Debts Goods Returned and Notes-and each compared with the 
 corresponding record in the journal or other posting medmm^ 
 The same general explanation applies to accounts to be written off 
 as "bad," and to accounts which are credited with Notes. 
 
 . IWailHMil 
 
 -. ..j i a iWtJii l tminri'trill--<iiiW> 
 
CARRYING FORWARD BALANCES 
 
 The Self-Proving Mercantile Ledger, as elsewhere described 
 in this volume and as illustrated by the miniature fac simile pages 
 bound in, is composed of wide and narrow leaves arranged m 
 sections. The first wide leaf of each section receives the names 
 of the customers and holds their accounts for two months, Jan- 
 uary and February, while the facing narrow leaf holds the ac- 
 counts for March and April. The second and third narrow leaves 
 facing each other carry May and June, and July and August, re- 
 spectively. The accounts as presented to view when the book is 
 onened are in monthly sections of four. At the end of each fourth 
 month it is necessary, therefore, to carry the balances over the 
 
 leaf. 
 
 The transferring of balances is readily and expeditionsly ac- 
 complished by the use of the Self-Proving Transfer Slip, an illus- 
 tration of which is presented herewith. These slips are ruled and 
 numbered to correspond with the ledger lines, and are provided 
 with a hanging lip at the top adapted to engage with the upper 
 edge of the wide page in a way to cause the slip to lie directly 
 against and parallc: with the edge of the narrow leaf. The Trans- 
 fer Slip is instantly adjusted in proper position, and the line num- 
 bers with which it is provided, made to coincide with the line 
 numbers on the margins of the narrow leaves, thus affording the 
 bookkeeper constant proof that the sUp is in correct position. 
 The Transfer Slip, adjusted in place in this manner, receives the 
 balances as they are struck in footing the monthly accounts on 
 
JlMjjLil l J<,t l jL)»»l| l .!l, ' -,l JJV^I^'-" i ' t' 
 
 ACCOUNTING SYSTEM 
 
 135 
 
 :es 
 
 lere described 
 ,c simile pages 
 s arranged in 
 ves the names 
 months, Jan- r 
 holds the ac- 
 narrow leaves 
 id August, re- 
 len the book is 
 . of each fourth 
 ances over the 
 
 ;peditionsly ac- 
 ;r Slip, an illus- 
 )s are ruled and 
 id are provided 
 with the upper 
 ) to lie directly 
 :af. The Trans- 
 id the line num- 
 le with the line 
 us affording the 
 ;orrect position, 
 ler, receives the 
 hly accounts on 
 
 
 
 the right hand narrow pages. When the amounts have been en- 
 
 e ed upon the Slip in this way it is then detached and put m 
 
 ce on the left hand wide page. It is there ad3usted to corr - 
 
 spond by line numbers with the columns of the new month re- 
 
 SELF-PR0VIN6 
 TRANSFER SUP 
 
 A »" 
 
 Cut 
 
 fromC 
 upward* 
 towards 
 A and B 
 
 Um 
 
 sharp 
 
 knift 
 
 Cut to 
 
 salt pais 
 
 '"sTrr. ---JUs' 
 
 34 1 ---Jp 
 
 35 1 T .ILe 
 
 36 1_ __. 3« 
 
 87 1 ----i^ 
 
 38 _ _ . 1 39 
 
 39 __ 1 39 
 
 40 MQ. 
 
 41 --4-^ 
 
 42 --4-^ 
 
 43 1 ♦S 
 
 44 J JLi± 
 
 45 1 ----1-^ 
 
 46 1 4---jp 
 
 47 ---Hp 
 
 48 - - - Jp 
 
 49 I ■■4^ 
 
 H««<V«rli TortMo 
 
 ''""^ « „ »„o Tuc «Pi f-Provinq Instalment and Mer- 
 
 vealed by the.narrow page after it is tumert. With t.e figures 
 on the Transfer Slip alongside the places that they are to occupy 
 in the new month, it is a very simple matter to comp le.e t e work. 
 The Transfer SHps are provided with spaces for foho num- 
 bers, by which they may be identified. The Slips are prmted on 
 
jgg THE SELF-PROVING 
 
 both sides, one side being adapted for use with those pages of 
 the ledger the lines of which are numbered from o to 49 in- 
 clusive, and the other for those pages the lines of which are num- 
 bered from 50 to 99 inclusive. 
 
 In addition to the mere use of carrying forward amounts m 
 the accounts as here explained, the Transfer Slips are adapted to 
 be used in proving the balance footings of the ledger before the 
 amounts have been entered on the new page. The Slip may 
 be used for this purpose in several different ways, one or two of 
 which we will refer to briefly: As many Slips may be in use at 
 a time as there are pages the amounts of which are to be earned 
 forward. After the balances have been entered on the Slips all 
 of them may be detached from the ledger pages, and, before the 
 amounts have been extended into their new positions, taken to 
 the Comptometer, to be footed by the machine, either singly or 
 collectively, as may be the preference of the bookkeeper. If 
 footed singly, the amount of each Slip may be written at the bot- 
 tom for use in carrying forward, or the amounts may be totalled 
 upon a separate Slip, or totalled by the machine without any 
 Slip If the Comptometer is not at hand for use in this way, the 
 Slips, similariy removed from the ledger, may be handed to the 
 bookkeeper's assistant for footing, while he attends to other 
 work, thus getting the collective balances ready to transfer to 
 ' the new month at the same time that the individual transfers are 
 made The total footings of the balances should equal the bal- 
 ance of the corresponding group account in the Private Ledger. 
 Again, each page, including its Transfer Slip, may be proved 
 by itself, without reference to other pages and shps, by footmg 
 the debits, footing the credits and subtracting one from the 
 othpr The balance thus obtained should equal the footmg of 
 the amounts on the Transfer Slip. The same routine obtains with 
 the Instalment Ledger. The Transfer Slips are manufactured of 
 
 - wi i ^iu'muuiiiUl-JiUL-'Wti-^' -'"'--" 
 
e pages of 
 
 to 49 iti- 
 
 h are num- 
 
 ACCOUNTING SYSTEM 
 
 18T 
 
 heavy ledger paper, and are supplied in a form to maintain their 
 IZl without folding or wrinkling, and in a way to be convenient 
 for use as required. 
 
 amounts in 
 adapted to 
 
 before the 
 e Slip may 
 e or two of 
 )e in use at 
 D be carried 
 :he Slips all 
 , before the 
 IS, taken to 
 ler singly or 
 ckeeper. If 
 1 at the bot- 
 f be totalled 
 without any 
 :his way, the 
 inded to the 
 ids to other 
 3 transfer to 
 
 transfers are 
 qual the bal- 
 vate Ledger. 
 ly be proved 
 s, by footing 
 >ne from the 
 he footing of 
 ; obtains with 
 nufactured of 
 
ill- 
 
 I 
 
 NUMBER RECORD 
 Where original entries are made the foundation of postings 
 and the sheets upon which they occur are to be preserved in reg- 
 ular order, as elsewhere described and illustrated, a system of 
 serial numbers by which to designate the several sheets or forms 
 is indispensable. In connection with the Self-Provmg Account- 
 inc. System, it is recommended that every paper that is to be pre- 
 served, excepting, perhaps, correspondence, be given a number, 
 and that these numbers be in definite series, and that the records 
 of numbers be so managed as to reduce to a minimum the danger 
 of duplicating a number; that is, using the same number for two 
 different purposes in the same class. 
 
 The most important of the several series of numoers to be 
 used is that applied to the sales or orders. The points to be ob- 
 served in connection with order numbers are also important in 
 other directions, as, for example, with the numbers of vouchers, 
 numbers of shipments or deliveries, numbers of goods returned, 
 numbers of invoices, &c., and, accordingly, a description of the 
 Record used for Sales Numbers will be sufficient to indicate the 
 
 requirements of all cases. 
 
 The Record of Sales Numbers illustrated herewtli is sup- 
 plied either in book form or in the shape of loose sheets, to be 
 held in a clip or binder, as may be preferred. In whichever *ape 
 the record is supplied, its use is the same. The Unes of the sheets 
 or pages are numbered. In one form each sheet or page contams 
 50 lines, thus making two sheets or pages to the hundred, and 
 
n of postings 
 served in reg- 
 a system of 
 leets or forms 
 nng Account- 
 it is to be pre- 
 /en a number, 
 lat the records 
 um the danger 
 umber for two 
 
 numbers to be 
 aints to be ob- 
 D important in 
 rs of vouchers, 
 oods returned, 
 cription of the 
 to indicate the 
 
 ;rewith is sup- 
 e sheets, to be 
 whichever shape 
 es of the sheets 
 r page contains 
 2 hundred, and 
 
 issfmn'*'^ 
 
 ACCOUNTING SYSTEM 
 
 130 
 
 in another style each sheet or page contains 25 lines, thus re- 
 quiring four pages or sheets to the hundred. Where the sheets or 
 pages are in sets or two, as above described, the line numbers on 
 the first read from o to 49 inclusive, and on the second from 50 
 to 99 inclusive. Where the sheets or pages are in sets of four, as 
 above described, the line numbers on the first read from o to 24, 
 on the second from 25 to 49, on the third from 50 to 74, and on 
 
 15 
 
 
 e?iu Damon 
 
 
 
 
 
 
 
 
 
 
 D«l« tf t*l« 
 
 Na. 
 
 NAME 
 
 ADDRI» 
 
 "tr 
 
 Dito0f 
 CtMrr 
 
 
 
 
 60 
 
 
 
 
 
 
 
 
 
 81 
 
 
 
 
 
 
 
 
 
 63 
 
 
 
 
 
 
 
 
 
 68 
 
 
 
 
 k 
 
 
 
 
 
 64 
 
 
 
 
 ,- — 
 
 ' — 
 
 
 
 S5 
 
 
 
 
 
 
 
 66 
 
 
 ^-^ 
 
 
 
 
 67 
 
 
 ^ 
 
 
 
 
 1 
 
 L- — " 
 
 
 
 Reduced Facsimile of Numbered Record for Orders (Copyright 1897 by J. F. 
 Brown and A. O. Kittredqe.) 
 
 the fourth from 75 to 99. Where loose sheets are employed of 
 this style ,they are used in sets of four, all bearing the same desig- 
 nating number, and in the case of a book, the pages appear in sets 
 of four also, each page of a set bearing the same designating num- 
 ber. 
 
 The page or sheet numbers are to be read with the line num- 
 bers, thus, for example, if the page before us is numbered 15, and 
 the line numbers are from 50 to 99 inclusive, then the numbers 
 represented are 1,550, 1,551, and so on to 1,599. The next sheet 
 or page upon which the line numbers are, from 75 to 99 inclusive, 
 
 -I 
 
I, 
 
 \ 
 
 ^^ THE SELF-PROVING 
 
 are read in conjunction with the page or sheet number in the 
 same manner, and give Nos. i,575, i,576, &c.. up to and mcludvng 
 I 599 By this plan numbers are constantly provided m senes ot 
 any required amount, without special expense of pnntmg sta- 
 tionery, and without the tedious writing in of figures or prmtmg 
 with numbering machines that is commonly resorted to. 
 
 The series of numbers may be extended to any desired hn^it, 
 as, for example, to 10,000 or to 100,000. The several series that 
 are used for a given purpose may be known by the letters of the 
 alphabet. Thus, supposing that the limit of a series is fixed at 
 10,000, when the last number has been reached, a new series is to 
 be started known as "A," with the numbers written A50, A965. 
 &c The books or blanks that are on hand when a new series is 
 commenced would require onlv the impression of the latter A in 
 proper place to distinguish them from the ones which had been 
 previously employed in the first series. In the same manner, suc- 
 cessive series of numbers would be known as B, C, D, &c. 
 
 The sales or orders, as they occur, are entered agamst their 
 numbers in the Number Record, thus, in each case, preempting 
 a number, and indicating that a given number having been used 
 for one order must not be appUed to another. The book or 
 sheets provide by the ruling employed, first the Date of Sa.e, fol- 
 ^o^ving which is Name and Address of the customer, and then a 
 line for Ledger Reference, and finally the Date of Charge. The 
 function of this book is only to supply numbers to the orders by 
 which thereafter they are known on the Order Record. The lat- 
 ter becomes the equivalent of the order book, as commonly desig- 
 nated, but the details of the orders are on sales sheets put away 
 in post binders, as described in another part of thi. volume. 
 Charges to customers are made by entering the amount shown by 
 the sales sheet in the Sales Record. In a very large business, 
 however, it is not always possible for the charges in this manner 
 
 n i wt-wiiwwwjj wmw 
 
ACCOUNTING SYSTEM 
 
 Ml 
 
 mber in the 
 nd including 
 1 in series of 
 rinting sta- 
 5 or printing 
 i to. 
 
 iesired limit, 
 al series that 
 letters of the 
 2S is fixed at 
 w series is to 
 1 A50, A965, 
 new series is 
 le latter A in 
 lich had been 
 manner, suc- 
 D, &c. 
 against their 
 e, preempting 
 ing been used 
 The book or 
 te of Sale, fol- 
 er, and then a 
 Charge. The 
 I the orders by 
 :ord. The lat- 
 mmonly desig- 
 leets put away 
 this volume, 
 lount shown by 
 large business, 
 in this manner 
 
 currecU hence he ""J „,,,, ,ws design supplies. 
 
 ^3;cr„pr::^:::u <s ---!::::::: o^ 
 
 Number Record will always show '^^^ ^^^^XL^,,^ .,e 
 
 .„orr soon . aiie ^^^-^x:^:::^! 
 
 unused number shown by the ^''"'^^^^^^^J'^t. .us.o,n.r 
 Lradr:T.™tr riroHhe .ansaCon is 
 Irud inTe booJof .he business in a way .0 secur. accuracy. 
 
 '"Z:::^ rl:" rushed .. „„ deUve. sha,. be made 
 witll a properly numbered blank covering ' --' -^f/^ 
 all blanks shall be returned to the office for final «".B- J" Jf^ 
 ulation, together with the other P"— w"^^* ^^ ^^n- 
 
 ::::::bre^::^:rrn:n:t^;-bythes^^^^^^^^^^^^ 
 
 duly written upon the face of the order slip or mvo,ce .s thereby 
 trit.rn upon the carbon copies. The mul.iplicat.on of records by 
 
 ''\ .ales nur„l,er is never to be duplicated. Once us^d the 
 number always stands for the transact.on to wh.ch , has be^n 
 ^nulled However numerous may be transactions, the supply 
 of ■ ulerVrnever exhausted, nor is it necessary to go into an 
 :,„;ro„"ue number of l..urcs, for, as explained above, different 
 
THE SELF-PROVING 
 
 series may be established and managed in a way to keep the num- 
 bers within reasonable bounds, while also securing all the advan- 
 tages here described. 
 
 !M*wiAMil»V': 
 
 5W.'i?S:&'«>^-'4.*T 
 
) the num- 
 the advan- 
 
 SALES RECORD 
 
 The SeH-Proving Sales Record is a register of the sales sheets 
 of the establishment, with notation of date, order number and 
 the amount of the sale, with provision for extending the amount - 
 into Instalment Ledger or Sundry Debtors, according to the 
 nature of the account. When the sales sheets, properly filled out, 
 reach the bookkeeper, and the shiping department returns the 
 duplicate showing that the goods have been delivered the book- 
 keeper is in position to make the entry upon the Sales Record. 
 
 He enters the date of the charge, the number of the order, 
 the name of the customer and the amount of the sale, and, m turn 
 extends the amount into the Instalment Ledger colunm if the 
 account is located in the Instalment Ledger or xnto Sundry 
 Debtors' column if the account is in that division of he booKs. 
 At the same time he extends on the same Une, in the column 
 headed Tsoc, the cost of the goods as figured on the margin of tl^ 
 office copy of the sales sheet. In due course the bookkeeper 
 posts the item to the ledger, putting into the Ledger Reference 
 column the page or line of the account. 
 
 Upon the page devoted to the Number Record we have de- 
 scribed how the Sales Record may be checked with the Number 
 Record in a way to insure all charges and deliveries to ^ujy^PP^^^ 
 upon the Sales Record. The column of the Sales Record devoted 
 to auditor's check may be employed to indicate comparison m 
 \his regard, as well as other features of examination at the dis- 
 cretion of the manager. 
 
 1 
 
5>v. 
 
 THE SELF-PROVING 
 *** various features o. prooi arc afforded. The <o.a. o. *e R^s', 
 
 ment Accounts and bunury u^ ^j 
 
 :xi;:::orar:uM.e.o.,ou.^^ 
 
 instahnent Ledger alone, -^ du^ —Lu „,ay be ob- 
 .„e lufst o^heesubUshu^^ 
 
 1 
 
 sake of completing the Sales Record, ^'^l^'^^^^J^ ^^ ^,, ,,. 
 sales appear thereon, the column ^^^^^^Z....r. and 
 ;:X:S;:: rm^the^a^rd wants Of eert.n—^^ 
 
 ,a„ P«ferre ;^ '°J^' ^^^^^ .,, ,„„«„, „, the column entitled' 
 LXnrXrposts to the debit of Instalment L.d,er Ac- 
 
ACCOT'NTIXG SYSTEM 
 
 145 
 
 tal of the first 
 with the total 
 ,ted to Instal- 
 )er 'leductions 
 The total of 
 It Ledger may 
 column in the 
 of course, for 
 eck may be ob- 
 vith the Charge 
 
 ribed, will show 
 the cash sales, 
 
 197 BY J. F. BROWN 
 
 ook. If, for the 
 i to have the cash 
 Sales, at the ex- 
 iry, however, and 
 certain merchants 
 le book. 
 
 es, posts direct, or 
 I, according to the 
 mt in the Private 
 be column entitled" 
 Iment Ledger Ac- 
 
 count in the Private Ledger, and the footing of the onUunn en- 
 titled Sundry Debtors posts to the debit of Sundry Debtors' Ac- 
 count in the Private Ledger. Cash Sales post from the Cash 
 Book to the credit of Selling Account in the Private Ledger, and, 
 therefore, if cash sales are entered upon the Sales Record, as men- 
 tioued above, the bookkeeper must take care to avoid the mistake 
 of posting them twice. The column headed Tsoc is to be footod 
 and posted into the column of the Private Ledger entitled Cost of 
 Goods Sold, thereby providing the basis of the cross ci 'ry to be 
 made at intervals betwetii Selling Account and Buying Account, 
 as elsewhere described. 
 
 In addition to the form of Sales Record illustrated here- 
 with, a combined Sales and Goods Returned Record is supplied, 
 the ruling and operation of which are analagous to the Purchase 
 Record, illustrated on another page. Tt afifords in a single book 
 a complete record of good- sent out, and goods returned by cus- 
 tomers, thus supplying to Selling Account the entries on both 
 sides. 
 
 ' 
 
 
 i 
 
 I 
 

 
 PURCHASE RECORD ' 
 
 Tr,P Self-Proving Purcliase Record, illustrated herewith, 
 serves tlu double purpose of recording the invoices of goods pur- 
 chased and of recording returns, thus showing net purchases. 1 he 
 invoices are the original records and are preserved by f^hug ui a 
 post binder, as described upon another r>:i,iTe. or in some other ap- 
 propriate manner, the names of sellers, .Ldes and amounts of each 
 being fus' entered vv^n the Purchase Record. The Purchase 
 Record, therefore, mav be described as simply a register of m- 
 voices. It is also a register of returns. Where many returns are 
 the rule it would be expedient to establish a second bmder m 
 which to file on proper blanks the shipments back. This file 
 should have its own series of numbers. 
 
 The Purchase Record is provided with three pairs of money 
 columns-namely, a debit and credit under each of the following 
 heads:— Buying, Manufacturing and Purchase Ledger. All the 
 accounts with those from whom goods are bought, as elsewhere 
 explained, are opened in Purchase Ledger, and therefore the Pur- 
 chase Ledger columns on the Purchase Record receive the credits 
 of the invoices. In turn, they receive the debits of the goods 
 returned. The balance is the net amount of the goods purchased. 
 The debits for goods coming in would either be Buying or 
 Manufacturing, or a part of each, according to the character of 
 the business conducted. The credits for the goods returned 
 would likewise be in one or the other of these accounts. 
 
 The Purchase Record is so arranged that a single hne. 
 
J 
 
 ed herewith, 
 of goods pur- 
 irchases. The 
 by filing in a 
 ome other ap- 
 lounts of each 
 The Purchase 
 register of in- 
 ;ny returns are 
 ;ond binder in 
 ick. This file 
 
 pairs of money 
 f the following 
 :dger. All the 
 it, as elsewhere 
 :refore the Pur- 
 eive the credits 
 s of the goods 
 3ods purchased, 
 r be Buying or 
 ;he character of 
 goods returned 
 >unts. 
 t a single line, 
 
 ) 
 
 mmmmm^. 
 
.^, 
 
 ^. 
 
 ^>. ^-vi 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 1.0 
 
 I.I 
 
 1.2 
 
 
 IL2^ i u i 1.6 
 
 
 fri 
 
 '/ 
 
 % 
 
 L 
 
 Photographic 
 
 Sciences 
 
 Corporation 
 
 ^ 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716)872-4503 
 
 — iwip^'^«i^W»] 
 
CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICMH 
 Collection de 
 microfiches. 
 
 it- 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques 
 
ACCOUNTING SYSTEM 
 
 147 
 
 whether representing a debit or a credit, is enough for a given 
 transaction. A cokimn for ledger reference of debit postings is 
 provided, and also one for credit postings. A column is provided 
 for Invoice Number, which column may also take the number of 
 the return in the event of a series of numbers being established for 
 returns. The latter should be appropriately distinguished from 
 the former by the initial "R" or by some other convenient means. 
 A column is also provided for auditor's check, which leaves upon 
 the record at all times the evidence of examination or lack of ex- 
 amination upon the part of the proprietor or managing man. 
 
 The individual accounts— that is, the accounts with those 
 from whom the business buys goods, will be posted from the Pur- 
 
 
 
 u 
 
 ll«. 
 
 rMt 
 
 Dr. 
 
 If 
 
 NAMn-MOJtCCOUNTl 
 
 Falk 
 
 ■uvma 1 
 
 MINUFACTUIIINQ | rUHCHAU UOOU { 
 
 Or. 
 
 Or. 
 
 Of. 
 
 Cr. 
 
 Or. 
 
 Cr. 
 
 
 
 
 
 «wtf 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,. 
 
 
 JJJ^ 
 
 
 
 
 
 
 
 _\m 
 
 iiLLliiJ 
 
 ^-i ■■ 
 
 
 JJ>^ 
 
 
 
 
 U-^ 
 
 
 
 ^"•H 
 
 JXLUJ-^ 
 
 
 Facsimile of Purchase record. (Copyright 1897 by J. F. Brown and A. 0. 
 
 KiTTREDQE.) 
 
 chase Record to the individual ledgers in the items as they occur. 
 Buying Account, Manufacturing Account and Purchase Ledger 
 Account, in turn, will be posted from footings. 
 
 If the Purchase Record is used in connection with the Pri- 
 vate Ledger, the footings of the columns daily, weekly or monthly, 
 according to the rule established, will be posted to the accounts 
 in the latter either direct or through the medium of a daily report, 
 or by being recapitulated upon the face of the journal, as else- 
 where described. Ledger pages should be inserted in the refer- 
 ence columns opposite the individual items that are posted, and 
 a check mark should be put opposite each of those items, which 
 
 ' 
 
yWgl t ^ - lUgl" ' .!^ ' jl-^JL ' ,4 1 J- 
 
 3^48 THE SELF-PROVING 
 
 are extended into one or the other of the columns and posted by 
 being totalled, thus always showing how far the work has pro- 
 gressed. In turn, the footings of the columns, when transferred 
 to the journal or carried to the Private Ledger, should be prop- 
 erly marked with journal page or ledger page, as the case may be. 
 The Purchase Record will contain all the usual credits to the 
 Purchase Account in the books, the exceptions being Notes Re- 
 turned or cash advanced to take up paper on the basis of an ex- 
 tended credit, Discounts for Cash, etc. It will also show the 
 total of the ordinary debits to Buying Account and Manufactur- 
 ing Account, the exceptions being freight items, purchases for 
 cash, and the like. 
 
 
osted by 
 has pro- 
 ansferred 
 be prop- 
 ; may be. 
 its to the 
 fotes Re- 
 of an ex- 
 show the 
 nufactur- 
 :hases for 
 
 CASH JOURNAL 
 
 The book known in the Self-Provinp Accounting System as 
 the Cash Journal may be variously used according to the nature 
 of the business. Briefly described, it is an extended column jour- 
 nal, the columns being of sufficient variety to permit any desired 
 division of the business to be recorded in the journal alone. It 
 also serves as a recapitulation book, in which the various auxiliaries 
 are summarized. In many cases one of its most useful functions 
 is to serve as a medium for cross entries between different going 
 accounts in different ledgers, as in the case of transfers, &c. It 
 is of a form also to be convenient for use as a voucher distributing 
 medium, useful in all cases where business is conducted upon the 
 
 voucher plan. 
 
 The cash columns in the Self-Proving Journal are supple- 
 mented by a balance column, thus facilitating a record of daily bal- 
 ances without footing lines. A pair of columns headed Bank are 
 also provided, thus adapting it to be used either with or without 
 the bank account separated from the cash. The Self-Proving Cash 
 Journal is constructed upon the wide and narrow leaf principle, 
 with the wide leaves reinforced throughout that portion of their 
 width which extends beyond the narrow leaves, thus making it a 
 flat book convenient for writing no matter in what part it happens 
 to be opened. The lines on the several pages are numbered, thus 
 facilitating references horizontally across the entire book. By 
 using the line numbers in connection with the page numbers this 
 arrangement affords a convenient basis of ledger references. 
 
 ■"H» 
 
100 
 
 THE SELF-rROVIXG 
 
 The Self-Proving Cash Journal varies from the conventional 
 journal in the way in which the entries may be made. Both a debt- 
 or ledger reference column and a creditor ledger reference column 
 are furnished, and, therefore, the debits and credits may be en- 
 tered on the same line. There is also brief space for "Particulars." 
 
 One of the useful purposes to which this book may be put is 
 that of receiving a daily summary of all the auxiliary books in the 
 form of a bookkeeper's or manager's daily report, the footings of 
 which post to the Private Ledger. 
 
,'entional 
 li a debt- 
 e column 
 y be en- 
 ticulars." 
 be put is 
 ks in the 
 otings of 
 
 CASH BOOKS 
 
 In all large establishments the handling of the cash and the 
 care of the cash account subdivides among several persons. 
 There is the work of the receiving clerk or receiving cashier, and 
 the work of the disbursing clerk or disbursing cashier, both of 
 whom handle currency in comparatively small individual sums, al- 
 though perhaps aggregating a very large amount. Beyond this is 
 the work of the principal cashier, or, in many cases, the bookkeep- 
 er, who superintends the petty transactions and also gives per- 
 sonal attention to those more imortant receipts and disburse- 
 ments evidenced by checks, drafts, &c. The latter also has 
 charge, as a rule, of the bank account. 
 
 The Self-Proving Accounting System readily lends itself to 
 this subdivision of labor in connection with the Cash Account. 
 The Cash Column Journal, elsewhere described, is the inclusive 
 account, so far as the general office is concerned, and may be 
 managed under the immediate direction of the general cashier, as 
 above described. Two subordinate cash books are supplied for 
 his assistants — one known as Cash Disbursements, and the other 
 as Cash Receipts. Before cash can be disbursed by the paying 
 cashier it must be supplied to him, and therefore the Cash Dis- 
 bursement book has at the outset a pair of columns— one en- 
 titled Source of Funds and the other Payments — thus permitting 
 a cash balance in the daily settlement between the subordinate 
 and the principal. Then follows a series of columns adapted for 
 classification of the amounts paid out, in a way to facilitate the 
 
 !i 
 
 -' 
 
152 
 
 THE SELF-PROVING 
 
 gathering of the items into proper form to pass them on to the 
 Daily Report, whether made separately or embodied in the pages 
 of the Cash Journal, as elsewhere described. 
 
 The Cash Receipts Record is similarly provided at first with 
 a pair of clumns, one of which is entitled Cash Receipts and the 
 other Disposal of Funds. This pair of columns also permits a set- 
 tlement daily between the clerk in charge and the principal 
 cashier, thus balancing the book. In addition to this pair of col- 
 umns, it is provided with single columns for properly classifying 
 and distributing the items of receipts in a way to facilitate the 
 making up of the daily report, as above mentioned. 
 

 ^^>.-— _..-w,,«.-«>»l 
 
 to the 
 ; pages 
 
 St with 
 ind the 
 s a set- 
 rincipal 
 of col- 
 ssifying 
 ate the 
 
 BALANCE COLUMN LEDGER 
 
 The rulings employed in the ledgers devoted to Purchase Ac- 
 counts, Sundry Debtors and Sundry Creditors with the Self-Prov- 
 ing Accounting System are of the time-honored debit, credit and 
 balance form. In addition to other advantages this style has the 
 special merit of being economical of paper and using the ledger up 
 completely, without those waste spaces that are frequently found 
 in full ledgers of ordinary ruling. 
 
 At the head of each half page — there being two accounts to 
 the page — there is space for name, street and number, and city, 
 
 NAME, 
 
 1 
 
 t/u<xm 
 
 laa 
 V 
 
 
 
 
 
 CITY._ 
 
 
 
 CITY 
 
 " r-,- 
 
 
 
 un 
 
 mm 
 
 rrM 
 
 Dr. 
 
 Or. 
 
 5 . 
 
 tUUM 
 
 OATI 
 
 im 
 
 rrm 
 
 •h 
 
 Or. 
 
 £ "' 
 
 IftUWft 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ~ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 l_ III 
 
 m 
 
 
 
 UliJ 
 
 
 - 
 
 L=J 
 
 
 
 tnu 
 
 LUi 
 
 
 Facsimile of Balance Column LEoat .. (Copyriqht 1897 by J. F. 3rown and 
 
 A. O. Ki; nf.oaE.) 
 
 thus recording the person with whom the account is opened in the 
 proper manner. Each account is ruled with a Date column Une, a 
 small space for Items, a column for Reference to posting medium, 
 and then three money columns — Debit, Credit and Balance. Be- 
 tween credit and balance columns a narrow column is inserted, 
 headed Dr. or Cr. The usefulness of this every bookkeeper will ap- 
 preciate at trial balance time. Whenever the balance in an ac- 
 
154 THE SELF rROVIXG 
 
 count is struck, if it be a debit balance. "Dr." is written in this 
 column, or if a credit balance. "Cr." is written in this column, 
 which indicates the character of the balance without the necessity 
 of glancing at the pencilled footings in order to see which of the 
 two amounts, Dr. and Cr., is the larger. 
 
 Every bookkeeper who has attempted to use a ledger contam- 
 ing large and small accounts, upon the plan of employing a small 
 space for an unimportant account and devoting a larger space to 
 an account that is expected to run for a considerable penod o 
 time, has been disappointed at the result. He has found, .n all 
 probability, that his judgment has erred in numerous instances and 
 that the spaces allotted to the several accounts have failed to cor- 
 respond with the requirements of those accounts. The accounts 
 opened in the large spaces have frequently proven to be short- 
 lived and those commenced in the small spaces have proven to be 
 so important as to soon outgrow the limitations assigned, makmg 
 it necessary to transfer them to another part of the ledger. 
 
 In the Balance Column Ledger employed with the Self-Prov- 
 ing Accounting System for Purchase Accounts. Sundry Debtors 
 and Sundry Creditors all the accounts are ruled of one dnnen- 
 sion-namely. the depth of a page. Each page, therefore, is de- 
 voted to two accounts, the form of the headings of which is print- 
 ed at the top. When an account is finally and definitely closed, and 
 the bookkeeper knows that no further entries are likely to be made 
 in it. the remaining space in the page may be utilized for another 
 account by the employment of a rubber stamp, which in orm is a 
 fac simile of the printed head at the top of the account, with the ad- 
 dition of the necessary cross lines. This stamp will be supplied by 
 the publishers of the ledger on order at a very low price By this 
 nJns all the paper of the ledger is used and the bookkeeper is 
 saved the annoying work of transferring accounts for which too 
 little space has been allowed. 
 
 « I 
 
 ^iiiifiiiffi 
 
 . j^m^ii ^t iiB i ii ^'. 'WmSi i 'kii'-' ' Bi>«< i^. V 
 
 a 
 
tmainrn<ra. 
 
 1 in this 
 column, 
 lecessity 
 h of the 
 
 contain- 
 r a small 
 space to 
 leriod of 
 id, in all 
 mces and 
 :d to cor- 
 accounts 
 be short- 
 ven to be 
 1, making 
 er. 
 
 self-Prov- 
 f Debtors 
 le dimen- 
 ore, is de- 
 li is print- 
 losed, and 
 ;o be made 
 Dr another 
 11 form is a 
 ■ith the ad- 
 lUpplied by 
 :e. By this 
 (kkeeper is 
 which too 
 
 NOTE RECORDS OR BILL BOOKS 
 
 The Note Records supplied with the Self-Proving Account- 
 ing System, both of which are illustrated in one of the miniature 
 fac-simile insets of this book, are constructed upon the same lines 
 as the Private Ledger and Balance Sheet, the Mercantile Ledger, 
 the Instalment Ledger and the Cash Journal, so far as the char- 
 acter of the leaves is concerned, and the use of the spaces which 
 the pages present. The Notes Receivable Record and the Notes 
 Payable Record are identical in principle, although one is essen- 
 tially the reverse of the other. One records the obligatibns pay- 
 able to the business and the other the obligations which the busi- 
 ness must pay to others. 
 
 Both of the Note Records are books of original entry, in that 
 they receive the record of the transaction when a note receivable 
 conies into the establishment, or when a note payable is made and 
 delivered. They are also ledgers to the extent of keeping the 
 Notes Receivable and Notes Payable Accounts respectively, al- 
 though where they are used in connection with the Private 
 Ledger and Balance Sheet the summary of these accounts ap- 
 pears in the proper columns in that book. In this case the Note 
 Records are posting mediums. The two Records are also post- 
 ing mediums, in that the entries connected with the receiving of 
 a note that is payable to the business and the issuing of a note 
 that is payable by the business are posted from them to the proper 
 
 ledger accounts. 
 
 By examination of the Notes Receivable Record it will be 
 
 m 
 
 II 
 
 ■-:mm 
 
J50 THE 8ELF-rUOVlN(} 
 
 seen that the left hand wide page provides space for date of 
 entry, description of paper, time to run, the date it begins to run 
 and the due date, together with the atnount. These items oc- 
 cupy tlie principal part of the f^rst half of the page, while the 
 second half is devoted to the account to be credited, with particu- 
 lars of the form in which the note is drawn. The amount column, 
 i,i which the amount of the note is entered, is the debit of the 
 Notes Receivable Account, the credit of the transaction being the 
 account of the person from whom the note is received. Columns 
 for the extension of the credit amounts are provided, includmg 
 Sales Ledger, Sundry Debtors, Cash. Bank and Miscellaneous. 
 The individual account is posted from this Record to the ledger 
 in which the account is located, while the column in which the 
 credit amount is extended is in due course footed for entry m the 
 Cash Journal, or in the periodical report in other form, m the 
 process of carrying the amounts to the Private Ledger. 
 
 Turning to the narrow pages, it will be seen that there is pro- 
 vided a space for recording Where Payable, and following this a 
 record of Collateral and Endorsements. The successive pages 
 are devoted to monthly accounts, all headed Falling Due. Each 
 of these monthly accounts has a debit and a credit column, the 
 debit column being for the paper received, and into which the 
 amount of the note is to be extended on receipt, with notation 
 of date, thus indicating the maturities for that month. The 
 credit column is for a corresponding entry when the paper is 
 Parted With, posted from the right hand wide page, as we shall 
 see as we go further along with this description. A special col- 
 umn is provided on the left hand wide page in which to check 
 the posting from the original record to this Falling Due page. 
 In the same way a corresponding posting column is provided at 
 the other extreme of the book for keeping record of the items 
 posted to the same monthly accounts. By this arrangement, as 
 
 I 
 
 ^i.-j-mai. 
 
 »-t ^. ,uy.^>.--^-- - ,r^a.. 
 
 W l WW " 't* '' < '**^' 
 
Jate of 
 to run 
 :ms oc- 
 lile the 
 particu- 
 :olumn, 
 t of the 
 nng the 
 lokimns 
 icluding 
 laneous. 
 e ledger 
 lich the 
 y in the 
 1, in the 
 
 e is pro- 
 ig this a 
 re pages 
 !. Each 
 imn, the 
 hich the 
 notation 
 th. The 
 paper is 
 we shall 
 ecial col- 
 to check 
 lue page. 
 3vided at 
 :he items 
 2ment, as 
 
 Tf I ■! IBlll^'. .'..'.' ;'.'-^ 
 
 ACCOUNTING SYSTEM 
 
 1B7 
 
 will be instantly perceived, there is presented in each month the 
 record of the paper falling due in that month, always showing 
 what remains unpaid and always being in form adapted to proof 
 by footing and comparison. 
 
 Toward the end of the year, in ordinary business transac- 
 tions. Notes are received which fall due beyond the calendar 
 year. Occasionally, also, notes are taken which have more than 
 a year's titne to run. Space is provided, therefore, following the 
 monthlv accounts, for recording maturity of paper falling Due 
 Beyond the Current Year. This space also has a debit and a 
 credit column, or one column for Received and another for Farted 
 With, thus making the account in this regard show at all times 
 the paper on hand, and also facilitating proof by footing and com- 
 parison. For Demand Notes still another section is provided, 
 with a column for particulars and also two amount columns, one 
 for Received and the other for Parted With. Finally there is a 
 space for the record of Interest Payments and for the reception 
 of any remarks it may i^e desired to make. 
 
 When a Note Receivable is received, the left hand wide page 
 or front of the book is used, as above described. When a Note 
 Receivable is parted with the reverse operation takes place, using 
 the right hand page or back of the book. In this latter part it 
 will be seen there is a space for Date, for the Consideration re- 
 ceived for the note, or for the Account to which it is to be charged 
 and an amount column. This amount column is marked Credit, 
 and is the complement of the Debit column in which the amount 
 was entered when the note came in. We therefore have the debit 
 and credit of the Notes Receivable Account in columns, always 
 exposed as the book is opened. The balance between these col- 
 umns must be the amount of paper in hand, and, in turn, is the 
 amount with which the Falling Due columns or monthly accounts 
 collectively must balance when the book is being proven. 
 
 
 tOi^Ji^ji'mi.'^^tfiJK- 
 
 HK"* 
 
1 1 
 
 158 
 
 THE SELF-PROVING 
 
 On the right hand page several columns also are provuled, 
 into one of which the amount of the debit of the account where 
 paper is parted with, is to be extended, according to the ledger m 
 which it is located. These columns include Cash; Bank Sales 
 Ledger, Sundry Debtors' Ledger, Purchase Ledger and Miscel- 
 laneous. Where the original entries are made in this book the 
 individual debtor accounts are posted from it to the differen 
 ledgers in which :hey are located. In the case of the ongmal 
 entries being made elsewhere, as with Cash transactions, for ex- 
 ample, where cash is received for a note, the Bill Book receives a 
 transcript of the entry from the Cash Book. 
 
 In both the debits and credits accounts affected by notes, as 
 represented by the columns, there is one devoted to Interest and 
 Discount, something that greatly faciUtates the record in cases of 
 notes sold for less than their face value or when discounted at the 
 bank, and also where interest as well as the face of an account is 
 
 covered by a note. . . 
 
 Reference to the Notes Payable Record will show that it is 
 constructed upon the same plan, but is reversed. The first entry 
 with reference to a note payable is the issuance of the paper, 
 which, of course, is a credit to the Notes Payable Account. 
 Therefore the f\rst entry in the Notes Payable Record is made 
 upon the right hand page, or in the back part of the book, in- 
 stead of the front part. The credit column for Notes Payable 
 Account appears on this page and is opposite the corresponding 
 or debit column on the left hand wide page. Appropriate columns 
 corresponding to the ledgers in which the individual accounts are 
 located are provided with both debits and credits. The narrow 
 leaves provide monthly accounts for paper issued and taken up, 
 thus showing maturities for any month. A Falling Due division 
 for paper maturing beyond the current year is provided, Mth its 
 proper debit and credit columns, and also a space for recording 
 
i^x 
 
 ACCOUNTING SYSTEM 
 
 159 
 
 ovicled, 
 , where 
 idger in 
 k, Sales 
 
 Miscel- 
 ook the 
 different 
 
 original 
 , for ex- 
 eceives a 
 
 notes, as 
 erest and 
 1 cases of 
 ed at the 
 .ccount is 
 
 that it is 
 first entry 
 he paper, 
 
 Account, 
 d is made 
 
 book, in- 
 ;s Payable 
 esponding 
 te columns 
 xounts are 
 'he narrow 
 I taken up, 
 lue division 
 ed, with its 
 r recording 
 
 Demand Notes, both issued and taken up. Narrow pages are 
 likewise devoted to a record of collateral and endorsement. 
 Where Payable and record of Interest Payments and Remarks. 
 
 The bill books here described may be used as component 
 parts of a complete Self-Proving Accounting System, or they 
 may be used in connection with any adequate system of book- 
 keeping. Their special advantages include, among others, the 
 graphical representation of paper falling due and paid in the dif- 
 frent months. These bill books are greatly appreciated by 
 bookkeepers, because they keep constantly before the managing 
 man the exact condition of the notes of the estabUshment, with- 
 out tedious listing and the making out of special schedules at 
 frequent intervals. 
 
 In the use of the Self-Proving Note Records here described 
 it should be observed that the line on which a note is recorded at 
 the time it is issued to a creditor or received from a debtor.stands 
 for that note until such time as it is discharged by proper pay- 
 ment or return. The faint line rulings of the pages are for this 
 reason numbered. The pages or folios in the books are also num- 
 bered. The page numbers, read in connection with the line num- 
 bers, afiford in this case, as in others, a convenient means of ref- 
 erence to any line on a given page, and also a method of designat- 
 ing the individual notes. This method of identifying or number- 
 ing the notes which are received, and numbering and recording 
 those which are given out, is found in practice to be much better 
 than the common plan of direct numbering. 
 
 iii 
 
 'a f 
 
 y 
 
 "■i 
 
SUSPENDED LIST 
 
 The construction of the Self-Proving Suspended List, a 
 miniature fac-simile of which is presented in one of the illustrative 
 insets in this book, is based upon the same principle as the leading 
 ledgers herein described — namely, with pairs of wide leaves, each 
 of which carries its complement of narrow leaves. Those por- 
 tions of the wide leaves projecting beyond the narrow leaves 
 are reinforced or thickened in a way to compensate for the extra 
 thickness of the narrow leaves, thereby providing an even writing 
 surface to whatever page the book may be opened. This rein- 
 forcing is not shown in the miniature fac-simile. 
 
 The plan upon which the Self-Proving Suspended List is de- 
 signed is such as to keep it in balance with the balance in a special 
 Loss and Gain Account, or Expense Account, in the general 
 books, thus affording the merchant the opportunity to watch a 
 given account which he has thought wise to close into Loss and 
 Gain, with the same care that the account would have been 
 watched among the so-called live accounts in the principal 
 ledgers of the business. As accounts are closed into the special 
 Loss and Gain Account, they are opened in the Suspended List, 
 and as collections on the accounts in the Suspended List are 
 made they are credited to the special Loss and Gain Account, to 
 which such items were charged in first place. The balance then 
 in the special Loss and Gain Account, determined by a compari- 
 son of the figures, even though this comparison be made aftet the 
 account has been closed into the general Loss and Gain Account 
 
 
 . 
 
 -. . iiiiiitu iiiwuiiWimmKitw 
 
List, a 
 istrative 
 ; leading 
 res, each 
 ose por- 
 w leaves 
 he extra 
 1 writing 
 his rein- 
 
 ,ist is de- 
 
 a special 
 general 
 
 watch a 
 Loss and 
 ave been 
 principal 
 le special 
 ded List, 
 
 List are 
 icount, to 
 mce then 
 
 compari- 
 ; aftel- the 
 I Account 
 
 .r^yY< 
 
 MI>J1ATURE FACSIMILE 
 
 OF THE 
 
 SELF-PROVING ' 
 
 Notes Receivable Record 
 Notes Payable Record, and 
 Suspended List 
 
 (SEE PAGES 155 AND 160) 
 
 COPVBIOHT 1897 
 
 By J. F. Brown and 
 
 A. O. KiTTBEDGB 
 
 'f 
 
 H 
 
 u 
 
(■ 
 
 ^<J 
 
 llatM inJ Ae MpfncM RMlilvihIa Hm»I»8II 
 
 ENTdY.ITC. 
 
 OHITt 
 
 No. 
 
 ii<itf 
 
 CMtk 
 
 It 
 
 ll»lll 
 
 
 
 DATE, ETC. 
 
 ^^ 
 
 ^ 
 
 _ 
 
 AMtant le bt CndlKd 
 
 Onwn 10 Ordw of 
 
 Amountt 
 RM<l¥a4 
 
 or Entry 
 
 "'"'' Run 
 
 DllM 
 
 from 
 
 Ojr 
 
 SilM Ltdflcr 
 
 
 i«iM ta C/wiaM r»rw*r4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 
 
 i2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Mntfl« and Ae rnptanMi Payable Taken Ud 
 
 Dilt 
 Tlkto Up 
 
 HOW TAKEN UP 
 (AMOunt 10 to Cndllfil) 
 
 Mmtunlt Bnuihl forward 
 
 
 DEIITS 
 
 Ptptr 
 Tikan Up 
 
 No. 
 
 CREDITS 
 
 Sundry 
 Crtdltori 
 
 Purchitt 
 LodQir 
 
 InlerMi or 
 OlHOunt 
 
 MsimaiWLiitT 
 
 CtppllMIMJ PlUnl f .mint ttlt-Prm«« «ec«<«ll»rt et.-««l«l« ««• trt-Iormlo 
 
i.t ..ni.t r ,^i, 
 
 >NSIDEIIED BAD 
 ULARS OF TRANSFER 
 
 1'y> 
 
 ,EtO. 
 
 T^"^" 
 
 * 
 
 Dl(M 
 
 1 from 
 
 Di<> 
 
 8il« Ltdgtr 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 CREDITS ""► 
 
 N*. 
 
 
 SrnMnr 
 
 OMk 
 
 ••at 
 
 Mirwl u< 
 
 MlH*H<M«» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Q 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 s 
 
 
 
 
 M 
 
 
 B 
 
 
 
 ^m 
 
 
 
 
 
 _ 
 
 
 _^^_ 
 
 » 
 
 
 I 
 
 furohiio 
 Ltdgtr 
 
 Inttrikt or 
 
 OlMOUIlt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Hatii aiiJ AeetptaneRi H«i!«lyihiii P.r«..i uinh 
 
 CREDITS 
 
 Data 
 
 
 CONSIDERATION 
 (Aioounl to ka Ohar«ad) 
 
 u 
 
 aifiiik 
 
 •r . 
 
 Amouflli 
 Parted With 
 
 Wllh 
 
 ! = 
 
 
 
 
 nav/ift Az-wiAf Farmard 
 
 
 
 o 
 
 
 
 
 
 
 
 I 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 
 RECORD or INTEREST PAVMCNTt 
 
 N*. 
 
 
 WaMllaiMtM 
 
 AND REMARKS 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 1 
 
 
 
 
 
 1 
 
 DDIL IDt«Cl 
 
 Natoi and *Kr«ptin««« P«y«hh IffiaH 
 
 N«. 
 
 CREDITS 
 
 LMIM 
 
 ENTRY, ETC. 
 
 Paptr liiuld 
 
 Chargia lo 
 (liiuail for) 
 
 Drawn to Ordir of 
 
 
 
 
 
 
 
 
 
 
 Umarn U Bmight Farwtrd 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 » 
 
 
 . 
 
 
 
 
 
 
 
 
 
 
 
 
 No. 
 
 RECORD OF CORRESPONDENCE, ETC. 
 
 4 
 
 4^ 
 
I- 
 
 w 
 
 f 
 
 Matin and Ai! wipt«niw« Btenlvihla HMtlvad. 
 
 
 
 ^^^M 
 
 ^g^^H 
 
 
 ■ 
 
 ENTRV, ETC. 
 
 OEIIT* 
 
 No. 
 
 I. 
 
 «M«M I* bt CndlMd 
 
 Dmn la Ordtr «f 
 
 Amoufltf 
 RM«lv«d 
 
 
 Am^ tM BrcutM r»mri 
 
 
 
 
 
 
 
 
 
 _fl- 
 
 
 
 
 
 
 1 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 No. 
 
 WHERE PAVAIIE 
 
 
 
 , 
 -^ 
 
 
 1 
 
 
 2 
 
 
 
 
 
 M«t«B and Ac ««ptanMt Payable Taken Ub 
 
 FALLING DUE 
 
 \ 
 
 Potlid 
 
 ■■ 
 
 ■ 
 
 HOW TAKEN UP 
 (Account to ba Crtdltad) 
 
 DEBIT* 
 
 No. 
 
 ■ 
 
 " 
 
 JANUARY FEBBUARV | 
 
 ta«Ur'> 
 CMtt 
 
 <• 
 
 mnlk 
 
 Tiktn Up 
 
 '•ii> Pipir 
 TiKin Up 
 
 •" No. 
 
 Day Tiktn Up iHuld 
 
 Uiy Tikan Up 
 
 luaad 
 
 
 
 
 ^^^ 
 
 ^^" 
 
 tmoynlt BnuaM Fcrmard 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
' ■;»^ T . - »i.i f i> -;^ t^iim' i i ' » mif i hiM rim ML.. .^ . .^-t— ■ 
 
 PAVAILE 
 
 4 
 
 Q DUE 
 
 
 
 FEBRUARY | 
 
 
 
 
 Uiy Tik«n Up 
 
 lUMd 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - ■■ "- 
 
 -•- 
 
 
 
 rEAR 
 
 ■ 
 
 ■ 
 
 m 
 
 n 
 
 
 
 
 
 1 Totil 
 •nd thilr Dttm 1 cr.<m. 
 
 
 tt Bnn 
 
 M Fori 
 
 mrd 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,^->rfvX> 
 
 w 
 
 y 
 
 
 s/ 
 
 «-> 
 
 .^v- 
 
 cz 
 
 
 ,ii>i m> . h ii i rWM ■rtin ii..«i^ w ii ii< ' i » « 
 
 
 F/n I ING DUE 
 
 giii.yf °Ki>ewiiwa 
 ll«t«« iinri AwtpUBM* P«y«hl« IttiiMl 
 
 
 
 
 
 
 
 ^■■^■i 
 
 
 MARCH J 
 
 APRIL 1^. 
 
 
 Oiy Tit 
 
 •n Up <• 
 
 •■•4 
 
 Day Til 
 
 in Up <•• 
 
 y|« 
 
 
 
 
 
 
 
 
 ^■^ 
 
 
 
 
 
 
 O 
 
 
 
 
 
 
 1 
 
 
 
 
 - 
 
 
 8 
 
 
 1 H-1- 
 
 ' 
 
 
 
 
 
 
 CREDITS 
 
 Itllfr 
 
 ruM 
 
 ENTRY, ETC. 
 
 No. 
 
 Piper liiuid 
 
 Cliirgti to 
 (Itiuid for) 
 
 Oriwn to Ordtr of 
 
 
 
 
 
 tmaii (I BriiiH Ftnard 
 
 o 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 2 
 
 
 
 1 • 
 
 
 
 
 
 
 I 
 
 
 : 3 
 
 .# 
 
r. 
 
 CIU.IIICKtn 
 
 ibli HkiIvmI 
 
 (NTKY, ETC. 
 
 OtIITt 
 
 No. 
 
 1 
 
 AtMaal la b> OniW* 
 
 Omni to Oritr at 
 
 Ameufltfl 
 
 
 tmt»i U ImtM ftrmtr^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 Hatm and AceeptanMt Pa yable Tiken Up 
 
 FALLING DUE 
 
 
 
 N* 
 
 JANUAHV 1 rCBRUARV 
 
 
 
 Oly lltMl>t« 
 
 Pirl«< Wllh 1 Diyl 
 
 Nao<l«td Pirlfd Wllh 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 s 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 s 
 IMIUr'l 
 
 Italh 
 
 Data 
 
 
 HOW TAKEN UP 
 
 (Aceount to b< Cndlttd) 
 
 ocaiT* 
 
 N«. ■ 
 
 MKk 
 
 Tik«i< Up 
 
 Takin Up 
 
 
 
 
 
 Jlnuttirtt BrnigU Ftrwtri 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 s 
 
 
 
 
 
 
 
 
 i 
 
 rAlllWG DUE 
 
 No. 
 
 MAV 
 
 JUNE 
 
 "* 
 
 0., 
 
 Tiktll Up 
 
 lM004 
 
 Oly 
 
 Toklll Up 
 
 luoH 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 D 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 OtU 
 
 Traoaftrretf from 
 
 Livo AocounU 
 
 imtiinit BnufU Farmtri 
 
 Mmouiitt Carriad Forward 
 
 AMOUNT 
 
 JZ. 
 
 li 
 
 S9 
 
 C«pitl|M mi Ptlinl Pffaaiiii t«lf*ftt<lil| Acctml-lMft e«.~fl«ff«lt 
 
 
 
 
 No. 
 
 rwi THE 1 
 
 EAI 
 
 
 
 
 
 iiloooo tram 
 IMH Yoor 
 
 OroMo 004 tlioir Doloo 
 
 Tom 
 
 CnMi 
 
 
 
 
 
 
 ioMoU f roJiM /wjm^ 
 
 
 
 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 s 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 37 
 
 rrTT 
 
 m 
 
 ^^^ 
 
 j'v->^ 
 
 
 • — ~^/ 
 
 
 
 
 , ^ 
 
 
 
 \^-w^ 
 
 '-'\~^ 
 
 
 TT 
 
 ryv^^ 
 
 
 
 
 
 
 
 
 
 88' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 89 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i... 
 
 fCarr 
 
 tdFii 
 
 art 
 
 
 
 
 
 
G DUE 
 
 
 
 
 Di) K«c>l««l 1 Pirlid With 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ta DUE 
 
 '"'"T" 
 
 "'^ 
 
 JUNK 
 
 "* 
 
 0,1 
 
 T>kM Mr 
 
 luiiH 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t TEA* 
 
 
 
 
 
 
 
 
 
 
 Iltt M< tktlr DitM 
 
 OnMH 
 
 •M. 
 
 It let 
 
 furu 
 
 Mr4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -_.^ 
 
 
 [^ ^ 
 
 
 ^ 
 
 J 
 
 ^ 
 
 
 . 
 
 «^^ 
 
 1 CB^R^wrro 
 
 Natti and Ai>i>«ntiiii>«a R»»lii«hU P>P«ail Ufith 
 
 
 ; 
 
 
 CKCOITI 
 
 Otit 
 
 PnM 
 
 With 
 
 OONIIDIIIATiON 
 (Aicsynl lo b< Ohirgid) 
 
 l» 
 
 • 
 
 Amount! 
 Parltd Willi 
 
 
 
 
 m»iiH$ BrmtM ftrmmr^ 
 
 
 
 o 
 
 
 
 
 
 
 
 f ^ 
 
 
 
 
 
 
 
 1 ^ 
 
 
 
 
 
 
 
 II 
 
 
 
 
 
 
 
 
 ran I Mr. PUg 
 
 HotBi ■nil AiinHplinm PtyiMt Itiiwil 
 
 
 JULY 1 
 
 Auouai 
 
 r 
 
 N*. 
 
 
 OtJ 
 
 Titiii Up 
 
 |HM« 
 
 Otf 
 
 Tali» Up 
 
 IM 
 
 <f* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 it. 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 s 
 
 
 
 
 
 
 
 
 
 * 
 
 
 
 
 No. 
 
 CREDITt 
 
 Milt 
 
 ENTRY, ETC. 
 
 Piptr Itiutd 
 
 Chirgi* to 
 ((■•Did for) 
 
 Drtun to Ordtr of 
 
 
 
 
 
 
 
 
 
 
 4iii««i U BnuiM rtrwr4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 
 
 >UST 
 
 Ml ti £a/r itf far «/i^ 
 
 li 
 
 
it ' 
 
 Hu t ! * «i»l Ae Bu ptt nM l R t Cl l H lhl l H l Cl l w t 
 
 
 
 N.«.« and Acr«n»«nM« PtvabiB TakSlLUJI 
 
 
 
 *■ 
 
 '••'•• D<U 
 
 HOW TAKEN UP 
 
 DcaiTt 
 
 N«. > 
 
 CMck 
 
 It 
 
 MllllH 
 
 Ttkin Up 
 
 (Aooount to b< Cnilltfd) 
 
 rnK Piptr 
 
 Tiken Up 
 
 MMB^ 
 
 
 
 
 Urnotnf BnuiM ftrmtrt 
 
 
 
 
 
 
 
 
 
 
 
 « . 
 
 
 
 
 
 
 
 1 
 
 1 
 
 
 1 
 
 
 s 
 
 
 1— 
 
 
 
 \ 
 
 
 
 I 1 
 
 i 
 
 
 "^^l"'^ 
 
 
 ■ 
 
 
 
 
 '^-.^ 
 
 ' — ^-"^ 
 
 — ^ 
 
 " 
 
 T' 
 
 
 S7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 88 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 89 
 
 
 
 
 
 
 
 
 
 
 
 
 imwii 
 
 If C<m 
 
 td Fan 
 
 tri 
 
 
 
 
 "''^^*t^^i«p!i;inp'*«*'^ 
 
 
IG DUE. 
 
 i - 
 
 JUNK 
 
 "" 
 
 O.y 
 
 lUctKf 
 
 i 
 
 Pirliil Wllk 
 
 
 1 
 
 
 n 
 
 
 
 
 ! 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ..EAU.INO DUE 
 
 JULY 
 
 Oty I Mt«tlvi4 
 
 AUGUST 
 
 Day 
 
 Ptrt« With I 
 
 I:U.I: .1 
 
 
 
 
 CKCOITt 
 
 Dal» 
 
 Wild 
 
 OONIIomATION 
 (Aioounl (• b« Oliir|i<) 
 
 1* 
 
 ■•mil 
 
 |3 
 
 
 AneyAlt 
 PaPlid Wllk 
 
 
 
 
 
 mumlt IrtmM ftrmmrt 
 
 
 
 , o 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 •^ 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 NO DME 
 
 
 
 OCTOBER 
 
 
 
 0,1 
 
 Tiktn Up 
 
 1 
 liiuid 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 rHE YEAI 
 
 l/Dwa r« Ctrr ttf /vi «iV 
 
 ©saEssssa 
 
 iEiU9ie«a 
 
 Unto! «iiil *fi.«p««iii.«« P.y.Klf l««M^il 
 
 .lALUWa-DUE 
 
 NOVCMBCR 
 
 Diy Tiktn Up 
 
 Balano* from 
 Li*l Vctr 
 
 DCCCMBER 
 
 Day Ttken Up 
 
 CREDITS 
 
 f apir l«iu«d 
 
 FOR THE VEAt 
 
 Ort«to m4 Itiatr Dattt 
 
 ianut ft Jr— f*f f#r wfrf 
 
 Tvtol 
 Crailta 
 
 ftlla 
 
 Charflfi lo 
 (Uiutd for) 
 
 imotfi /f Bright f9Pm%r4 
 
 Drawn t« Ordar af 
 
 MMn»S>llOT 
 
 
 1 
 
 No. 
 
 DECORS OF CORKtPONOENCE, ETC. 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 a 
 
 
—-,1 --. ' « " *- 
 
 r,-^. 
 
 
 tNTNY, ITO. 
 
 AMCaal )• ki 0ra<llt4 
 
 <»«« <. f fWf^f f»f »«<•< 
 
 Oriaii I* Otfl »t 
 
 OIIITt 
 
 Amaufll* 
 
 Oly 
 
 _. --■ 
 
 rALLINO out 
 
 •tPTCMBCM 
 
 rwM WHO 
 
 OCTOaiN 
 
 o»» 
 
 PWU4 WH» 
 
 I 
 
 fl n»«« «nit Aee nntim;** p*"*'''* Taken Ut 
 
 fftiiiNfl aue 
 
 CmHlX !•»' """' """"l 
 
 iiH'rraiiiii «tM«iit«« et.-«»f«it 
 
 :,-s?y.'.jiai'Jj-.,'.L jnjM"-'.' ■'.'"'"' 
 
 i i» > 5»iii.»iT^:Cii™ "^ 
 
iNOjmi- 
 
 OCTOaCN 
 
 Ol) R<MI«M ruit« Wllk 
 
 -fAUJttfl DUK 
 
 
 ■■ 
 
 NOVCMaCR 
 
 pci. tMBcn 
 
 
 
 0,1 
 
 - 
 
 TMt* Win 
 
 6» 
 
 ■•nl«i4 
 
 Ptrl«< wim 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -- 
 
 
 
 
 
 k -i* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 N*. 
 
 CMDITt 
 
 Oll> 
 
 
 CONIIDIKATION 
 
 fnu* 
 
 I* 
 
 ■ •Mill 
 
 ii 
 
 
 Amount* 
 PirM Wllk 
 
 wim 
 
 
 
 
 
 mnull if—U fummrJ 
 
 
 
 .1 o 
 
 
 
 
 
 
 
 
 1 ' 
 
 
 
 
 
 
 
 
 1 ^ 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 INQ DUE 
 
 
 ^^ 
 
 UNO out tirONO 
 
 
 M<r 
 
 iuni 
 
 M, 
 
 Aa« 
 
 •Ml 
 
 0<l 
 
 N« 
 
 0<«. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TIAR 
 
 I m4 imp Oaln 
 
 I jf_£p*jg *> f«w art 
 
 T*ltl 
 CrMlto 
 
 rAi 1 iMn niir 
 
 
 
 
 
 OUMINT VIA* "-♦• 
 
 DIBANO NOTIt 
 
 N*. 
 
 
 ttkn Up 1 b 
 
 •M4 
 
 Pirtltiilm Tit 
 
 •II Up It 
 
 IM4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 2 
 
 rOR THI VIM .. 
 
 •altMP from 
 Lnl Vnr 
 
 Ort^Hi m* Mtir DitM 
 
 #W#IWI f wr9w^ rf f0f9 tfw 
 
 TpttI 
 CnOti 
 
 ICILLIIKkC!! 
 
 Watoi ind Iftnuptimm Piyihto Imiiil 
 
 
 CPIDITI 
 
 
 INTIIY, ITO. 
 
 No. 
 
 Pipir liiuttf 
 
 Ohirgi* to 
 (l»u«d for) 
 
 Driwn tp Ordir of 
 
 
 
 
 
 
 
 
 4iiiwi It BrMi^l r»nitr4 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 8 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 ■MntlMSIMT 
 
 
 
 
 No. 
 
 RECORD OF OORRMPONDCNCE, ETC. 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 s 
 
 
 ■* 
 
"v;- 
 
 L i JJ. ' M i " ' 'j!^".J - 
 
 
 Hfl fff. .nit JKc ftH*'""" Burnlvihlw PmlMl With. 
 
 t nuE 
 
 DUE ICVOND 1 
 
 Jun« 
 
 July 
 
 »ug. 
 
 »pl. 
 
 Oct. 
 
 Nov. 
 
 Dec. "■ 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i 
 
 t 
 
 
 
 
 ■v-v^ 
 
 nrr 
 
 ■ 
 
 -_ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 1 1 C»rm 
 
 1 Fcrmi 
 
 ri 
 
 1 
 
 1 1 1 
 
 __ 
 
- .f ' SVL 't ! - ■ - ■ L-M ' -" ' 
 
 "IT! 
 
 "yi 
 
 i > |i£Q «rt.jj_L i rtJ | -iCT.^ 
 
 
 ENTRY, ETC. 
 
 OEBITt 
 
 No. 
 
 AwMnt lo b> CrtillM 
 
 Oriwn lo Order of 
 
 Amountt 
 RHaUatf 
 
 iniM ta BimtM rtnmrt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 ^^ 
 
 
 REOORO OF INTEREtT MYMENT* 
 AND RIMMXt 
 
 ^ 
 
 
 Ne. 
 
 Hfv Wl IVH WW 
 
 lirttfttt tM 
 
 DiMMIrt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 s 
 
 
 
 
 
 
 
 
 Nntat and Accaptaneai Payable Taken Up 
 
 
 Paillt 
 
 !• 
 ■talk 
 
 Oil) 
 
 
 HOW TAKEN UP 
 (AeoounI to bo Crtdlttd) 
 
 l«|ir 
 
 DEBIT* 
 
 No. 
 
 CMck 
 
 Tiktn Up 
 
 '•"• Paptr 
 Takiii Up 
 
 
 
 
 
 tnumrtt Bnaght Fwwtrt 
 
 
 
 
 
 
 
 
 
 
 
 
 
 9 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 S 
 
 
 
 
 
 
 
 
 
 -1 
 
 
 : 
 
 
 
 No. 
 
 "*~ OECIT* 
 
 
 rorolioM 1 topdry 1 
 Udfor 1 CndMon | 
 
 iooli 
 
 lattml or 
 O"" Dtoooool 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 \ 
 
 
 
 ■ 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 14 
 
 esapioaae INT 
 
 Dill 
 
 Trmiftrrod from 
 
 livo AocoHnu 
 
 NAME ^ 
 
 AMOUNT 
 
 1 
 
 No. 
 
 
 
 tn,^n,. ««..« f.«.,rf 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 2 
 
 
 , 
 
 .,^-^^^„,~-^_^-wv-— .^•v-^>— »-^ 
 
 
 J"4-k^ 
 
 1 
 
 c«pri|M itli PittM 9%%t\%% t«it*rr«(tii« «cc*Mi-iMii e«.-«if«l| 
 
 ^. ff e iffrei ww ' w p« ^ y*y .iiAuiiu«MW g w » »ww wwy' 
 
 1 
 
DIIUL HUS'SCl 
 
 
 
 
 
 
 
 
 ^^ 
 
 T« 
 
 ^ 
 
 
 
 HMOw MR 99 W 
 
 IfrttfCtt tH 
 DiMMIll 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 NnfM >nrf AMnplmiMt RARnIwahl. Parturi WHh 
 
 
 
 DEBITS "->■ 
 
 iMfir 
 
 CREDITS 
 
 ParM 
 
 Willi 
 
 CONSIDERATION 
 (Account to be Oliirgcd) 
 
 hurt 
 
 l« 
 
 ■•ink 
 
 
 
 
 PurahiM 1 Sundry 1 Salai 1 ,,„,^ 1 £„,, 
 L«l««r 1 Dtbtora 1 Kdgtr D •'"» 1 ''"" 
 
 Folta "•• 
 
 AmouftU 
 Pirltd With 
 
 
 
 
 
 
 
 
 
 
 
 
 
 mw/iM BnnM Ftmrd 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 j 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •1 
 
 
 
 rs 
 
 
 hull 1 
 
 0..K '? 
 
 •rest or 
 MeuM 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 MafM «iirf Ai'i'«p*«iii'«« Payhto ItiiwH 
 
 UOT 
 
i 
 
 
 
 
 
 
 
 
 
 
 -J 
 
 
 
 
 
 .>^ 
 
 
 
 
 y 
 
 r 
 
 
 
 
 
 
 
 
 
 
 1 
 
 ■ 
 
 1 
 
 L: 
 
 1 
 
 1 ■ 
 
 
 
 ■ -..'■.'-- ^-.■ 
 
 
 \ 
 
 ■ • 
 
 ■ "'""':" :^" 
 
 - 
 
 1 
 
 • 
 
 
 
 
 \ - ■ . - .. 
 
 * 
 
 
 • 
 
 
 
 9 
 
 i 
 
 
 
 
 
 
 
 -r 
 
ACCOUNTING SYSTEM 
 
 161 
 
 of the business, will show how much a trial balance of the Sus- 
 pended List should show. The Suspended List is a ledger ar- 
 ranged upon the line principle, with one Une devoted to each ac- 
 count. At the outset, therefore, it is essentially nothing more 
 than a list of the bad accounts of the business. There is provided 
 first a column in which to record the date at which the account is 
 transferred from among the live accounts of the establishment. 
 Then follows the name and the amount, with notation of the 
 ledger folio from which the account was transferred; next a space 
 for particulars, or why the account was considered bad. Follow- 
 ing this are twelve narrow pages, each devoted to a year. In the 
 f^rst column of the first yearly account is entered the amount of 
 the account, where it will stand until the succeeding year, and 
 from which it is to be carried forward to the corresponding col- 
 umn in the succeeding year, diminished by the credits in that 
 interval, if any credits have been made. There are .five spaces 
 for credits, each subdivided by interlining, so as to make it possi- 
 ble as a fact to credit to each account ten payments in the course 
 of a year, a number greatly in excess of what is usually obtained. 
 Finally, on each narrow page is a column for the total credits. 
 
 Suppose that an account has been entered in the list at $150. 
 Then it will also appear on the first narrow page or the first yearly 
 division in the amount of $150. Suppose also that during the 
 first year two payments of $25 each have been made. These are 
 noted in the columns entitled Credits and Their Dates. At the 
 fend of the year they are summed up and extended into the col- 
 ■ umn entitled Total Credits. For carrying forward into the new 
 year the total of the credits in this case— $50— would be sub- 
 tracted from the amount of the indebtedness— $150— and the 
 difference carried forward with which to start the account for 
 
 the second year. 
 
 ' By turning the page it will be seen that the second year's bal- 
 
i -»n- '^-■-^ . ■n | >^^-^■a^^ ■^if'mi-Tn-iT«- . Ti . ga- .- 
 
 162 
 
 THE SELF-PROVING 
 
 ance, by this plan, is contrasted with the original amount with 
 which the debtor stood charged when the account was opened in 
 the Suspended List, and as each successive page is similarly 
 turned the diminishing balance, if, fortunately, it is a diminishing 
 balance, is brought against his name and directly in contrast with 
 the original amount. 
 
 With the twelve pages provided in the book, there is the op- 
 portunity of watching an account twelve years, or the book in use 
 may be considered to cover a space of twelve years. The narrow 
 pages are dated successively for the years, and, as new accounts 
 are brought into the list after the first year, their amounts are 
 entered upon the pages corresponding with the years that they 
 are transferred. By this arrangement there follows that the total 
 of the amount column on the f^rst page will always represent the 
 total of the bad accounts of the business, from the time that this 
 book is commenced forward, while the footings of the balance 
 column for each of the yearly divisions will show the amount of 
 these bad debts outstanding at that date. In the same manner 
 the total credits for the years are shown in the credit columns in 
 the successive yearly spaces. 
 
 Turning to the second wide page, it will be noticed that 
 space is provided for noting the name and residence of the attor- 
 ney to whom the account has been turned over for collection, the 
 date when it was so delivered to him, and also a record of judg- 
 ments, together with reference to correspondence. 
 -: The horizontal lines are numbered, and the Une on which a 
 debtor's account is originally entered stands for that account as 
 long as it is carried. By combining the line numbers with the 
 page numbers a reference to any particular account is obtained, 
 6o definite in character as to make it available for reference in- 
 stantly. 
 
 pjuiipi'iw«.i.»wWpW»* 
 
lount with 
 i opened in 
 3 similarly 
 liminishing 
 ntrast with 
 
 e is the op- 
 )ook in use 
 rhe narrow 
 w accounts 
 (nounts are 
 5 that they 
 It the total 
 present the 
 le that this 
 the balance 
 amount of 
 me manner 
 columns in 
 
 oticed that 
 if the attor- 
 llection, the 
 )rd of judg- 
 
 on which a 
 account as 
 irs with the 
 is obtained, 
 eference in- 
 
 EXPENSE RECORD AND LEDGER 
 
 A combined Expense Record and Ledger is supplied for use 
 with the Self-Proving Accounting System, in those lines of busi- 
 ness where expense items are very numerous, and where the ex- 
 penses are largely cash items. The book is constructed upon the 
 same general plan as prevails with the other principal books of 
 the system. It is composed of pairs of wide leaves, between which 
 are a number of narrow leaves. The projecting parts of the wide 
 leaves are reinforced or thickened to compensate for. the thick- 
 ness of the narrow leaves. 
 
 The ruling of the book is such that when the first or left 
 hand wide page is opened, with all the narrow leaves turned 
 against the second or right hand wide page, there are presented 
 the portions of the book adapted to receive the original entry and 
 the distribution of the amounts among the columns standing for 
 the different ledger accounts in the Private Ledger. The rulings 
 on the several narrow pages, and on that portion of the second 
 wide page which is covered by the last narrow leaf turned against 
 it. are devoted to the Individual Expense Accounts in pairs of 
 columns, into which the items of expense are extended from time 
 to time. 
 
 In the ruling, space is provided for date of entry, names of 
 accounts, both debit and credit; posting references, both debit 
 and credit, and a pair of columns for total of expenses or Expense 
 Ledger. These latter columns would post by footings to the 
 Expense Account in the Private Ledger. Following to the 
 
 '•t fl t iwvivT f 
 
 
1, I 
 
 164 
 
 THE SELr-PROVINQ 
 
 right, by way of distributing columns, arc pairs marked Cash, 
 Sundry Creditors, Purchase Ledger, Sundry Debtors, Instahnent 
 Ledger and Miscellaneous. There are also blanks permitting a 
 further addition to the distributing columns to accommodate 
 special schemes of classification. 
 
 The Expense Accounts distributing through the narrow 
 pages, including those which are commonly required in a mercan- 
 tile business, are as follows :— Wages and Salaries, Advertising, 
 Rent, Interest and Discount, Cartage and Storage, Fuel and 
 Light, Stationery and Supplies, Rebates and Allowances, Legal 
 Expenses, Taxes and Insurance, Telephone and Telegraph, Car- 
 fare and Messenger Service, Repairs and Breakage. There is also 
 an account for Unclassified Expenses and several pairs of columns 
 with blank heads, thus permitting additional accounts required in 
 special cases. 
 
Ii l"*! 
 
 :ked Cash, 
 Instalment 
 rmitting a 
 ommodate 
 
 he narrow 
 I a mercan- 
 .dvertising, 
 , Fuel and 
 ices, Legal 
 jraph, Car- 
 here is also 
 of columns 
 required in 
 
 \ 
 
 •» 
 
 INDEXING 
 
 In connection with the Mercantile Ledger and the Instal- 
 ment Ledger, as well as in other individual ledgers that may be 
 opened in a set of books managed upon the Self-Proving Ac- 
 counting plan, there should be employed a good name mdex. 
 Selection should be made from the considerable number of most 
 excellent articles of this kind that are in the market, accordmg 
 to the number of accounts and the bookkeeper's preferred plan 
 of indexing. There is nothing peculiar about the Self-Provmg 
 System in the matter of indexing, save that instead of the ac- 
 counts being indicated by page numbers in the index, they are 
 indicated by account numbers, composed, as explamed m other 
 parts of this volume, of the page number of the ledger read m 
 conjunction with the line number of the page. 
 
 Where accounts are transferred from one ledger to another, 
 as at the close of the year, it is of advantage, so far as possible, to 
 manage the transferring in a way to give the accounts earned 
 forward the same numbers the succeeding year. If the book- 
 keeper has learned, for example, that an account to which he has 
 occasion to refer very frequently is No. 483. and that aumber is 
 associated in his mind with the name of a customer, then it is an 
 advantage in transferring the account to continue No. 483 i" 
 connection with that name. This precaution saves unlearmng 
 the old number and learning a new, and diminishes, accordingly, 
 the amount of reference that would be made to the name index. 
 
 . ■ 1 ' 
 
I , 
 
 1' 
 
 les 
 
 THE SELF-PROVINQ 
 
 There is no other reason than this for transferring to the same 
 position in the new ledger. 
 
 In the Intahnent Ledger, in view of the fact that each ac- 
 count is indexed, not only in the name index but also upon the 
 customer's card and upon the street index, this reason has addi- 
 tional force. Where accounts are transferred in this manner, giv- 
 ing the old accounts the same numbers in the new year that they 
 have had in the old, there will necessarily be an irregular filling up 
 of the new ledger. This would at first seem to be a difficulty in 
 the way of the plan, but when the facts of the case are properly 
 considered, it is not so great an objection as would at first be 
 supposed. New accounts, as they come alon^^:, are entered in 
 the blank spaces that are left, so that in the end the book is com- 
 pletely fdled in practically the same shape as would have been the 
 case if the accounts had been transferred from the old year in 
 their natural order. , > 
 
 -r ' 
 
 ' ?'.. 
 
 \. 
 
the same 
 
 each ac- 
 upon the 
 has adcH- 
 nncr, giv- 
 that they 
 filHng up 
 fticulty in 
 ; properly 
 it first be 
 nterecl in 
 >k is com- 
 : been the 
 d year in 
 
 t> 
 
 PART III 
 THE SELF-PROVING 
 
 ACCOUNTING SYSTEM 
 
 APPLIED TO THE 
 
 INSTALMENT BUSINESS 
 
 Mpanpwm 
 
GROWTH OF THE INSTALMENT BUSINESS 
 
 The rapid growth of the instalment business the last few 
 years, not only in the furniture trade, but in various other branches, 
 is one of the marked features of the period. In response to a 
 popular demand, thousands of merchants, not only in this coun- 
 try, but in other countries as well, have organized credit depart- 
 ments or have converted their entire enterprises into credit stores, 
 and are now selling goods upon what is known as the instalment 
 plan. Thousands of other merchants, drawn to this subject by the 
 success of their neighbors, are at present studying the question, 
 with a view to opening credit departments. 
 
 The reasons for the phenomenal growth of the instalment 
 business are not hard to discover. The great majority of the 
 buyers of all the classes and kinds of goqds that are sold by retail 
 dealers are persons in the receipt of weekly or monthly incomes. 
 They are wage-earners, paid at stated intervals, and, for the most 
 part, frugal and honest people, quite as much entitled to credit on 
 their purchases, so far as concerns their integrity of purpose, as the 
 ordinary rank and file of business men. They are not experienced 
 financiers, however, nor have they the property basis of credit 
 ordinarily exacted in credit transactions among business men. 
 Their wants in the matter of household equipment, including such 
 articles as carpets, furniture, musical instruments, sewing ma- 
 chines, bicycles, books, and so on to the end of a considerable list, 
 are well defined, and they are abundantly able to purchase such 
 articles with a fair degree of liberality, provided only the oppor- 
 
 ?W"»*"W^ 
 
 i ii.tflVn-^f f'nn '^ 
 
170 
 
 THE SELF-PROVING 
 
 tunity is afforded them of paying for the same in reasonable instal- 
 ments from their wages or salaries as the same may be received. 
 
 Credit on the ordinary basis these people, as already stated, 
 cannot comniand — first, from lack of property or capital qualifi- 
 cation, and, second, because, as a rule, they are not good enough 
 managers to enable them to carry through a transaction without 
 a certain amount of business assistance. The lack of the first is 
 supplied in the instalment business by the sales being made under 
 a lease or contract, with the title of the goods remaining with the 
 seller as security until the final payment is made. A safe instal- 
 ment business, therefore, is necessarily restricted to articles of 
 enduring value, like furniture, musical instruments, books, ma- 
 chines, and the like. It cannot be founded upon articles that are 
 at once consumed, like groceries, confectionery, etc., nor yet can 
 it be so satisfactorily based upon ordinary wearing apparel, al- 
 though this plan of selling clothing to both men and women is 
 very widely practised in certain communities, and successfully, 
 too, when measured by the resulting profits. The second condi- 
 tion is supplied by the business system of the instalment dealer 
 through which the customers are induced to pay promptly at reg- 
 ular intervals, according to the terms upon which the sales are 
 made. 
 
 The instalment business is profitable, because the price at 
 which the goods are sold upon this plan, including, as is proper 
 that they should, a sufficient allowance for the costs of doing 
 business, interest on the time payments and something for the bad 
 debts and unusual expenses which occasionally occur, reaches fig- 
 ures that are very attractive to the merchant. At the same time 
 the prices are not excessive, from the standpoint of the buyer, in 
 view of the terms of payment that are extended to him and the fact 
 of his having the use of the goods from the beginning. Most buyers 
 are willing to give a little more for any article of merchandise 
 
lable instal- 
 received. 
 ady stated, 
 lital qualifi- 
 >od enough 
 on without 
 
 the first is 
 made under 
 ng with the 
 
 safe instal- 
 • articles of 
 books, ma- 
 ples that are 
 nor yet can 
 apparel, al- 
 d women is 
 successfully, 
 icond condi- 
 ment dealer 
 iptly at reg- 
 he sales are 
 
 the price at 
 as is proper 
 sts of doing 
 g for the bad 
 , reaches fig- 
 le same time 
 the buyer, in 
 I and the fact 
 Most buyers 
 merchandise 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 when paym'ii': is to be made at some future time, than when cash 
 in hand is exacted. All these considerations, and others which it 
 is not necessary to enumerate in this connection, make the instal- 
 ment business especially attractive to the merchant. 
 
 Nor is the instalment business surrounded by such difficul- 
 ties of management as to make it unsatisfactory in its conduct. 
 On the contrary, when equipped with proper facilities in each of 
 its several divisions — the sales department, the office or book- 
 keeping department, the delivery department and the collection 
 department — it runs as smoothly as any other form of business 
 with which it might be compared, and with far less fret and worry 
 to the merchant than many other forms of retail trade. 
 
 The instalment business has various advantages peculiarly its 
 own. The income, based as it is upon stated weekly or monthly 
 payments upon account, is a constant and unvarying quantity, ir- 
 respective of the volume of sales for the time being. The busi- 
 ness seldom knows a dull period, so far as income or cash receipts 
 are concerned. Suitably organized, an instalment store is a great 
 business machine, grinding without intermission and producing a 
 constant result. Properly conducted, a business upon the instal- 
 ment plan is one of the safest enterprises upon which a merchant 
 can embark. This assertion is made, notwithstanding the fact 
 that at the hands of the commercial agencies instalment merchants 
 very seldom receive the credit rating to which their prosperity 
 would justly entitle them. The lack of rating in the past, as is 
 freely admitted, has been largely influenced by the somewhat care- 
 less manner in which the business has been conducted by some of 
 the pioneers in the line and the loose ends about their establish- 
 ments which have been manifest even to casual observers. All 
 this has been changed, however, for now, under the leadership of 
 the more progressive instalment dealers, the business has become 
 an exact science, and with the use of the bookkeeping system 
 
172 
 
 THE SELF-PROVING 
 
 which it is the purpose of this volume to describe and make known 
 it is in better control, even at the hands of men of limited com- 
 mercial talent, than almost any other plan of business with which 
 it might be contrasted. 
 
 It is practically impossible to consider a bookkeeping system 
 apart from what in contrast therewith may be called the business 
 administration of the establishment. While it is the special ob- 
 ject of this work to illustrate a system of accounts for the instal- 
 ment business, the book goes mucl further and discusses various 
 other details of the instalment business, covering such matters as 
 sales, deliveries, collections, the nature of the lease or contract 
 and the course which it is expedient for the instalment merchant 
 to pursue in handling delinquent accounts, in recovering goods 
 from customers, in resorting to legal measures, etc. The several 
 chapters of the book, and all the items of advice that it contains, 
 are based upon practical experience aiid reflect the views of those 
 who have made a careful study of the business in all its details 
 through a series of years, wherein it has been most successfully 
 conducted. 
 
 MM 
 
Wjm' .B WMiaM1 C i TTT i S a 
 
 "--' — .■ ■■■■ ■■'■■>' ■ 
 
 
 nake known 
 mited com- 
 with which 
 
 ping system 
 the business 
 ; special ob- 
 »r the instal- 
 isses various 
 h matters as 
 
 or contract 
 nt merchant 
 ^ering goods 
 
 The several 
 t it contains, 
 iews of those 
 all its details 
 t successfully 
 
 BENEFICENCE OF RETAIL CREDITS 
 
 Many merchants enter upon the instalment business as a mere 
 feature of trade and for the profit there is in it, without a thought 
 as to its economic value or the beneficial influence that it exercises 
 upon the wage-earning class. 
 
 Many volumes have been published in praise of the savings 
 banks, and the end of the literature of that sort has not yet been 
 reached. Numerous other books have been written extolling 
 building associations and commending them in the highest terms 
 because they provide a means whereby wage-earners, without 
 previous accumulation of savings, can buy and own their homes. 
 Much has also been written in praise of Hfe insurance, a scheme 
 whereby future benefits are secured to wage-earners by the in- 
 vestment of a portion of their weekly, monthly or yearly incomes. 
 
 Very little, on the contrary, has been put forth commending 
 the instalment business, and yet the instalment business is entitled 
 to the same praise, in kind if not in degree, as belongs to one or 
 the other of the schemes of saving just enumerated. Without 
 the instalment plan of purchase there is many a husband and wife 
 that would struggle for years to save enough money to furnish a 
 modest house decently, and meanwhile would be raising their 
 family. A dwelling they can rent or buy through a building as- 
 sociation. Furniture they cannot rent, and, aside from the oppor- 
 tunity oflfered by the instalment plan, they cannot buy. Through 
 the instalment plan, however, all necessary household comforts 
 are at their command from the beginning. 
 
 
, 
 
 174 
 
 THE SELF-PROVING 
 
 Contrast, then, the relative position of two families — one that 
 struggles through years of privation to accumulate the money to 
 buy a household equipment, and the other, through the bene- 
 ficence of the instalment system, that has the use of the household 
 equipment during the time that it is being paid for. Certainly it 
 were wise and prudent and far better for the children to have the 
 advantages of a furnished home from the start than to suffer pri- 
 vation and distress while saving the money to buy for cash. 
 
 The same principle applies to the student with respect to the 
 books that he needs by way of a library of reference; also to the 
 small manufacturer who needs machinery for the economic pro- 
 duction of goods, and to numerous others in various walks of life 
 who must either elect to go without that which adds to comfort 
 or income, or accept the offer of the instalment dealer to supply 
 the articles they so much need. 
 
 The instalment business is entitled to a position of honor in 
 the estimation of economists and philanthropists nearly, if not 
 quite, as high as that accorded to life insurance. Life insurance 
 has long since ceased to be argumentative. It is no longer re- 
 garded as a thing of possible advantage. It is now declared to be 
 a necessity, and that man admittedly does wrong, no matter what 
 his circumstances, who does not make use of the advantages which 
 it offers. Contrast the position of two men — one who saves a 
 hundred dollars and puts it away in the savings bank, thereby 
 making some provision for old age, and the other, who, saving 
 from his earnings the same amount, invests it in a term endowment 
 insurance policy. Leave out of the question for the moment the 
 advantage to the family, in the event of the death of the insured 
 man during the years that the accumulations are being made and 
 set aside. Certainly, all circumstances considered, the argument is 
 greatly in favor of the man who makes use of the facilities which 
 life insurance companies provide, and thereby gets in lump at the 
 
5 — one that 
 e money to 
 
 1 the bene- 
 
 2 household 
 Certainly it 
 to have the 
 D suffer pri- 
 :ash. 
 
 spect to the 
 also to the 
 •nomic pro- 
 ,valks of life 
 to comfort 
 If to supply 
 
 of honor in 
 arly, if not 
 e insurance 
 ) longer re- 
 clared to be 
 natter what 
 tages which 
 vho saves a 
 nk, thereby 
 ivho, saving 
 endowment 
 noment the 
 the insured 
 g made and 
 argument is 
 ilities which 
 lump at the 
 
 
 ACCOUNTING SYSTEM 
 
 in 
 
 end of the contract period an amount considerably in excess of the 
 aggregate of principal and interest on the payments he has made. 
 
 Next consider the position and circumstances of the same 
 men, or two others in like position of earnings, with respect to the 
 equipment of their homes. With the same amount saved, one 
 lays it aside for a future purchase, while the other buys at the 
 outset and pays from time to time on account of things which are 
 in daily and satisfactory use. It must be clear to every one that 
 the latter has much the best of the bargain, so far as his own and 
 his family's comfort is concerned, and that he is in reality the better 
 member of society and more useful in his community. 
 
 The economies of most men are the results of necessity. Men 
 do not spend, because they do not have the money. Artificial 
 restraints are sometimes as potent in this regard as those deter- 
 mined by general conditions. Accordingly, we find that men are 
 made severely economical by the desire to save money to meet 
 the dues of the building association, which stand for the security 
 of tlie home; to pay the premiums upon their life insurance pol- 
 icies, which, in the event of death, are the guarantee of support of 
 wife and children, and likewise to meet the payments on their 
 instalment purchases of household goods, because these articles 
 represent so much of the comfort and cheer of their homes. 
 
 There are those who carp at all instalment transactions be- 
 cause the instalment system in some isolated case has been used 
 harshly, to the injury of the buyer. This, however, does not prove 
 the general rule. Building associations in the past have also been 
 mismanaged and the faith of the shareholders sadly abused. Life 
 insurance of a fraudulent character before now has thrown- dis- 
 credit upon the whole insurance system, and it is to be admitted 
 that unscrupulous instalment dealers have sometimes mistreated 
 their customers. Still the world at large knows that there are 
 honest and safe building associations and reliable life insurance 
 
 
176 
 
 THE SBLF-PROVINQ 
 
 companies, while hundreds of thousands of people all over the 
 country stand ready to bear witness to the advantages which in- 
 talment purchases have been to them. 
 
 The modern instalment dealer, in his own interest, is both 
 patient and considerate. He has no sympathy with the lustful 
 greed which led to the mistakes of some of the pioneers in the 
 trade. With a safe business in hand and assured of a fair profit on 
 his transactions, he is fully conscious of the good he can do and 
 the benefit he can confer upon honest people, who, without the 
 favors he is in position to extend, would be deprived of many of 
 the comforts of life. Nor does he stop here. He knows the bene- 
 ficial influence that his collection department can exert, and he 
 remembers how prone men are to spend money fooHshly before 
 paying their obligations, if not promptly reminded of them when 
 the money is received, and, therefore, he firmly enforces the terms 
 of the agreement relating to payments. In cases of sickness and 
 distress, however, he cheerfully waives his rights and patiently 
 waits until conditions improve. Philanthropy combined with 
 business is practically illustrated at the hands of every honest and 
 enterprising instalment dealer. 
 
I ilfr i I rtiilfT-r; 
 
 1 over the 
 i which in- 
 
 st, is both 
 the lustful 
 eers in the 
 ir profit on 
 :an do and 
 without the 
 of many of 
 rs the bene- 
 ert, and he 
 shly before 
 them when 
 s the terms 
 ickness and 
 d patiently 
 bined with 
 honest and 
 
 THE SELF -PROVING ACCOUNTING SYSTEM AP- 
 PLIED TO THE INSTALMENT BUSINESS 
 
 The instalment business, to which more particular reference is 
 made in the pages following, is that of furniture and household 
 goods in general, and therefore the blanks and forms that are 
 shown are for the most part particularly suited to that trade. 
 The adaptability of the system of bookkeeping here explained to 
 other branches of the instalment business, in whole or in part, will 
 be apparent upon examination, and therefore it has not been 
 deemed necessary to go out of the way for special illustrations. 
 
 The business of an instalment dealer handling furniture and 
 household goods in general very naturally divides into several 
 leading departments, among which may be mentioned the Sales 
 Department, wherein the agreement with the customer as to 
 terms of payment, etc., is arranged; the Delivery Department, 
 through which the goods that have been sold are sent to the pur- 
 chaser, and the Bookkeeping or Office Department, wherein are 
 kept the accounts with customers. This latter also receives, di- 
 rectly or indirectly, the payments as they are made, and in addi- 
 tion attends to the buying of goods and the paying for the same. 
 At the same time it exercises a general supervision over all the 
 other divisions of the business. Still another and very important 
 division is that of Collections, which, by reason of its intimate asso- 
 ciation with the office, is very generally considered a subdivision 
 of that department. Finally there is the Legal Department, more 
 
178 
 
 THE SELF-PROVING 
 
 or less sharply defined, to which are referred all questions of seizure 
 of goods and replevin and the problems of collections wherever 
 there are apparent the elements of fraud and dishonesty. The 
 Self-Proving Accounting System subdivides in a way to accommo- 
 date its records to each of these departments, showing its opera- 
 tions in detail, while also at all times correctly showing the busi- 
 ness as a whole. 
 
ns of seizure 
 ns wherever 
 nesty. The 
 o accommo- 
 ig its opera- 
 ng the busi- 
 
 HOVV TO INSTAL A NEW OFFICE SYSTEM 
 
 Much time is saved when a new business or accounting system 
 is to be introduced, as well as expense and annoying mistakes 
 avoided, by securing in advance the assistance of some one who is 
 abundantly able to answer all the various questions that arise and 
 suitably direct each of the persons in the several departments as to 
 his new lines of duty so far as the system makes changes. This is 
 true irrespective of the Self-Proving Accounting and Business 
 System, and it is true also of it. Accordingly in adopting this sys- 
 tem merchants are urged to arrange for expert help and to fix a 
 date that, while serving their convenience so far as making the 
 change is concerned, will also permit of a little preliminary study 
 upon the part of the expert as to their exact needs. 
 
 There are no two establishments that are run exactly alike 
 and that require identically the same outfit. One will want more of 
 this and less of some other item, and others vice versa. Therefore 
 a business engineer should be called in. It is his duty to look over 
 the establishment, to confer with the proprietor and bookkeeper 
 as to the special wants of the case so far as they see them and to 
 converse with the heads of all the several departments in order to 
 learn from them exactly how the business has heretofore been 
 run. By this means he obtains a clear insight into all special re- 
 quirements. His next step is to show the proprietor in considera- 
 ble detail what may be accomplished by the use of the different 
 features of the Self-Proving System and how variations may be 
 introduced for the purpose of facilitating one result or another. 
 
 ,r— 
 
mmiiiM i iip»TfTii-n 
 
 180 
 
 THE SELF-PROVING 
 
 according to special ideas. After having determined in this man- 
 ner what it is expedient to do, the plan is next reduced to formal 
 shape, thereby indicating just what changes are necessarv to be 
 made in each of the several departments, what new features are to 
 be introduced, what new equipment is necessary and what varia- 
 tions may be advantageously made in the force employed. 
 
 When this plan of operations has been formally drawn up and 
 has receix ed the sanction of the proprietor, a date is agreed upon 
 when the changes shall be introduced, and then they are made 
 under the supervision of the engineer or his assistant, with the 
 result that the old is abandoned and the new installed without jar 
 to the business anywhere and without any loss of time or unneces- 
 sary expense. 
 
 The publishers of this book are in position to supply expert 
 help or business engineering for the purposes here described, and 
 are always glad to correspond with those who may be contemplat- 
 ing a change in their business system. Prices for such engineer- 
 ing assistance are subject to negotiation and will be quoted when- 
 ever the circumstances of the case have been made known. 
 
-mimmmm' 
 
 n this man- 
 d to formal 
 ssarv to be 
 tures are to 
 what varia- 
 ed. 
 
 awn up and 
 igreed upon 
 y are made 
 It, with the 
 without jar 
 or unneces- 
 
 ipply expert 
 scribed, and 
 contemplat- 
 :h engineer- 
 uoted when- 
 own. 
 
 DATE FOR MAKING CHANGES 
 
 Many merchants labor under the impression that changes 
 in their accounting systems are only possible on the ist of Jan- 
 uary If their inventories are regularly taken at this date there 
 is some reason for this opinion, but, on the other hand, with holi- 
 day trade and other conditions prevailing at the turn of the year, 
 January is seldom the best date at which to take account of stock 
 and close the books. Broadly stated, that date is best for m- 
 ventorying when business is most slack and when practically the 
 entire force of the establishment can be employed upon the special 
 work required without neglecting the routine features of the busi- 
 
 ness. 
 
 The Self-Proving Instalment Ledger and other books shown 
 in this volume are ordinarily printed for the calendar year-that is, 
 with the f^rst division devoted to January and the last to Decem- 
 ber It frequently occurs, however, that a want is expressed for 
 books arranged to commence with July or some month other than 
 January. The publishers are always ready to meet such require- 
 ments and on order to send out books printed to agree with any 
 fiscal year that may be described. 
 
 On the other hand, the Instalment Ledger, and other books 
 printed with monthly divisions agreeing with the calendar year, 
 may be used as they are for fiscal years varying therefrom with- 
 out other changes than can be made by the employment of a rub- 
 ber stamp to vary the dates, or these changes in months may be 
 made with the pen. Further, the books may be used without 
 
 M H 
 
 :^^' 
 
 imuiimiiM 
 
182 
 
 THK SELF-I'ROVIXO 
 
 even ch.ingiriK the dates simply by opening the ledger with the 
 bal.ince transferred to the month in which the work is begun, 
 leaving blank the months which have passed since the beginning 
 of the calendar year. Thus, for example, if a Self-IVoving In- 
 stalment Ledger were to be introduced the 1st of April the bal- 
 ances from the old ledger would be brought forward into the bal- 
 ance column of the April account, filling out opposite the names 
 on the first folio the reference to the old ledger as there provided. 
 The accounts would then be regularrv- conducted to the end of the 
 year and then carried forward into a new ledger in case it were 
 desired in the following year to have the books corresi)ond with 
 the calendar year. On the other hand, if it were desired to main- 
 tain a fiscal year running from April I to March 31 the balance 
 from the December accoimt might be brought forward in the same 
 ledger to the January space previously left unused, and in this 
 way January to March inclusive would be used, thus employing 
 every page of the ledger. For the succeeding year a ledger would 
 of course be ordered ruled for the fiscal year designated. These 
 expedients are mentioned only because through correspondence 
 we have learned that questions of this sort arise in the minds of 
 those who are considering the advisability of a change. 
 
ajijfei i;L±A*^*-"»?''M#^^ 
 
 r witli the 
 is begun, 
 beginning 
 roving In- 
 ril the bal- 
 ito the bal- 
 the names 
 e provided. 
 ■ end of the 
 ase it were 
 >pond with 
 ;d to niain- 
 :he balance 
 in the same 
 and in this 
 employing 
 dger would 
 ed. These 
 espondence 
 le minds of 
 
 SMALL AND LARGE STORES 
 The bookkeeping and business system described in this vol- 
 ume is equally applicable to small and large -f >-';--.;; ." 
 the use of such terms as -accounting department, pnvate 
 office." ••superintendent;- "managing man." "delivery depart- 
 ment," "collection department," etc.. we accomplish a double pur- 
 pose-namely, indicating the divisions with which a large enter- 
 prise would be organized and also pointing out the functions the 
 Lrchant must exercise who. in conducting a small busn.ess, prac- 
 tically does everything himself. 
 
 The Self-Proving Accounting and Business System is so 
 elastic as to be adapted to all conditions of business, and the occa- 
 sional presence in this book of terms which refer to large orgamza- 
 tions should not in the least distress the man who is conductmg a 
 small business nor cause him to suppose for a moment that the 
 plan in its essential features is not as well adapted to hts require- 
 ments as to those of much larger concerns. 
 
 The transactions of a business, or the items, are just the same 
 in kind, whether ihe enterprise be of large magnitude or of very 
 linnited dimensions. The books and accounts to be employed are 
 of the same character, whether the business be large or small but 
 the subdivisions required are far less in number with a small busi- 
 ness than with a large business, because in the latter case the busi- 
 ness employs a larger number of people. The system explained 
 in this book may be used in a business so small that the propneto 
 and a clerk constitute the entire force, or it may be equally well 
 
184 
 
 THE SELF-PROVING 
 
 employed, with proper expansion in the several departments, in a 
 business the sales of which are as much as $75,000 to $200,000 a 
 
 month. 
 
 The Self-Proving Accounting and Business System has noth- 
 ing of the mysterious about it. It is simply common sense prac- 
 tice arranged on scientific principles and adapted to the ends in 
 view. It does away with all of the secrecy and mystery that have 
 heretofore surrounded the science of good bookkeeping and pre- 
 sents both details and results in such a form as to enable any mer- 
 chant, irrespective of his general education or experience as to 
 bookkeeping, to be in touch with all that is going on and to be 
 able to judge of all the transactions of the business from whatever 
 point he may choc.e to view them. Instead of the bookkeeper of 
 the establishment keeping within his own control the condition of 
 the business and divulging only so much of it to the proprietor as 
 to him seems best, the proprietor, by the Self-Proving Accounting 
 System, has everything brought to him, and therefore becomes, as 
 he should be, the prime mover in the enterprise, the centre around 
 which all the departments revolve and from whom they receive 
 their force and impetus. These features of the system are greatly 
 appreciated by those who have adopted the plan and will be in- 
 stantly perceived by all who investigate it. 
 
 ■ ■ ", - J ■■ 
 
ments, in a 
 $200,000 a 
 
 n has noth- 
 sense prac- 
 the ends in 
 y that have 
 ig and pre- 
 ile any mer- 
 ience as to 
 1 and to be 
 m whatever 
 okkeeper of 
 :ondition of 
 roprietor as 
 Accounting 
 becomes, as 
 ntre around 
 :hey receive 
 1 are greatly 
 i will be in- 
 
 APPLICATICN FOR CREDIT 
 
 Every applicant for credit, or every purchaser who desires to 
 buy goods to be paid for upon the instalment plan, should be 
 required to give various particulars concerning himself, mcludmg 
 name and address and whether or not the proposed purchase .s 
 the first transaction with the house. He should also give his oc- 
 cupation, and tell where employed, with such personal references 
 as he may be willing to supply. Information of this kmd, when- 
 , ever given, should be preserved in the office, because occasionally 
 it is very desirable indeed to be able to refer to it. Transactions 
 with customers are greatly facilitated by the use of a blank sim- 
 ilar to that presented on the opposite page. 
 
 In addition to the information which the customer gives con- 
 cerning himself, there should be looked up his past record in case 
 he has previously dealt with the house. Accordingly, the lower 
 part of the form is devoted to a record of previous transactions 
 The bookkeeper puts upon the form a record of the number of 
 purchases that have been made, with the total amount, and indi- 
 cates how the payments have averaged. He also states the bal- 
 ance of the present account, if any. The salesman also contrib- 
 utes his quota to the completion of the document by inserting the 
 estimated amount of the proposed purchase, together with a 
 memorandum of the terms that the customer desires to make. 
 In filling the blank up to this point the office employes have been 
 investigating the proposed credit so thoroughly that each of them 
 has formed an opinion, either that it is expedient or that it is in- 
 
 1! 
 
 V 
 
w 
 
 I 
 
 mmm^m^^ 
 
 im 
 
 THE SELF-PROVING 
 
 APPLICATION JORCREDII 
 
 Ledger Jfo- 
 
 J{ame.. 
 
 Address.. 
 
 Is this the first transaction 1 
 
 Former Address 
 
 Occupation 
 
 Where Employed 
 
 Reference and other Information 
 
 RFrnRH DF PREVIOUS TRINSICTION 
 
 How many purchases... 
 Total amount of same 
 Average of Payments... 
 
 Balance of Present Account 
 
 Estimated amount of this Purchase. 
 
 Terms Proposed 
 
 Offioe Recommendation 
 
 Manager's Approval: 
 
 Form of Credit Application. 
 
 •immimmitmmm 
 
ACCOUNTING SYSTEM 
 
 181 
 
 expedient to grant it; and, therefore, the office is prepared to 
 make a recommendation in the case. A line is provided for this 
 
 purpose. 
 
 When all the spaces have been filled out in this manner the 
 application goes to the general manager or proprietor for final 
 approval or disapproval, as the case may be, and his decision m 
 the case is indicated over his initials at the bottom of the form. 
 In a very large business there might be employed a credit man- 
 ager, whose duty it would be to pass upon applications for credits. 
 In no case should sales be made or goods allowed to go out of the 
 store until some one with proper authority has O. K.'d the ap- 
 plication for credit. 
 
 As before remarked, all credit appHcations should be filed in 
 a way to make them accessible at any future time. The forms 
 may be filed in any of several acceptable ways. The most satis- 
 factory, perhaps, all things considered, is by some means of alpha- 
 betical arrangemer.t. There is a space provided in the form sub- 
 mitted herewith for recording the ledger number after the account 
 is entered up, a detail that should not be omitted. 
 
 
SALES, SHEETS OR ORDER FORMS 
 
 The sales sheets, order forms or invoices, by whichever name 
 they may be designated, that are used with the Self-Proving Ac- 
 counting System are the same in shape and character as have long 
 been employed for salesmen's orders in jobbing and other mer- 
 cantile establishments. They are printed upon paper of good 
 quality and of a weight to permit duplication by the use of carbon 
 sheets. 
 
 For ordinary retail stores, in which some of the sales are upon 
 the lease or contract plan, and others upon open account, two 
 forms are desirable. One of these would be used for cash sales or 
 for sales to customers upon open account — that is, outright sales, 
 without the lease or contract provision — and the other for lease 
 or contract sales, with payments upon the instalment plan. The 
 difiference in the ruling and printing of these two forms is very 
 slight. In each case they are arranged in sets of three and put 
 up in pads. One copy is intended for the customer, being the 
 bill, or invoice. Another is the office copy, and is filed in a post 
 binder, as described in another part of this book. The third is 
 the requisition on the shipper, and contains all necessary direc- 
 tions to the shipper for the delivery of the goods. The third 
 copy, or the one intended for the shipper, is preferably printed on 
 paper' of a different color from the other two, for the purpose of 
 readily distinguishing it among the documents of a similar form 
 in the office. 
 
 In the use of either form by the salesman an order number is 
 
. .i^':ii' p'^m''™f'*''^^- 
 
 RMS 
 
 hichever name 
 if-Proving Ac- 
 :r as have long 
 nd other mer- 
 )aper of good 
 ; use of carbon 
 
 sales are upon 
 
 account, two 
 )r cash sales or 
 outright sales, 
 other for lease 
 ;nt plan. The 
 » forms is very 
 
 three and put 
 ner, being the 
 1 filed in a post 
 The third is 
 ecessary direc- 
 ds. The third 
 ably printed on 
 the purpose of 
 
 a similar form 
 
 )rder number is 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 applied to the blank when being lulled out in the way described m 
 another part of this book where the Number Record and sales 
 numbers are discussed. The number is written upon the ongmal, 
 during the time the dupUcates and their carbon sheets are m place, 
 so that the number also appears upon each of the several copies, 
 thus unmistakably identifying them. ^ ». 
 
 The printing at the top of the form of sales sheet used for 
 cash sales, or for sales to be charged in ordinary account, is in the 
 general style of a bill or invoice. In the form used for instalment 
 Lse or contract sales the printing on the face of the sheet differs 
 from the ordinary bill or invoice, because the sale indicated is 
 made with restrictions and is limited by the terms of the contrac 
 which has been signed by the purchaser. There is, therefore, at 
 the top of the second form meiely the word "Order," below which 
 is space for the name of the contract purchaser and his place of 
 
 residence. , 
 
 On the back of the form used for lease or contract sales there 
 is printed, for convenience, the lease or agreement under which 
 the goods are sold, with blank spaces for writing in such det^ls as 
 are special to the transaction. At the bottom, lines are left for 
 .he signature of the purchaser, with notation of his references and 
 various other particulars pertinent to the transaction. 
 
 Of the form of sales sheets used for cash sales or for sales m 
 ordinary account, the first or original of the three sheets in the set 
 is given to the customer as his invoice or bill. With the second 
 or lease form, the first or original of the three sheets in the set is 
 retained in the office, while the second, or the first carbon copy, is 
 ,iven to the customer as his copy of the record of the t-nsacUon^ 
 The lease or contract, which is printed on the back of the 
 original, receives the customer's signature. In due course this 
 original is filed away in a locked post binder, and th-^^^- -^^ 
 a page in what may be designated as the contract book of the es- 
 
 .'^ 
 
 r 
 
 
t. 
 
 190 
 
 THE SELF-PROVIXO 
 
 tablishment, easy to be referred to by reason of the number which 
 it carries, and possible of detachment in case it is wanted in legal 
 proceedings or for any other cause. The second of this set, or the 
 first carbon copy, which, as already mentioned, is handed to the 
 customer, has on the back of it the form of lease or contract which 
 the customer has signed. By delivering this sheet to the cus- 
 tomer he is furnished with a list of the goods purchased, including 
 the prices of the same, and also a copy of the lease or contract 
 which he has signed. This method of dealing with the customer 
 is very generally appreciated, and in the long run is found to be 
 not only expedient, but economical, for it saves making out from 
 time to time, when customers demand, a list of the goods origi- 
 nally purchased, together with prices. This duplicate of the con- 
 tract and bill of the goods charged, taken in connection with the 
 pay card, elsewhere described in this volume, form a combination 
 which customers learn to appreciate, and which in itself is busi- 
 nesslike and up to date, as compared with transactions in other 
 lines. 
 
 For convenience in use, and in the sense of saving time when 
 customers are in hand, it is expedient to keep a number of sets of 
 these sales forms of both kinds, ready in holders, as elsewhere de- 
 scribed in this book, with the carbon sheets in place. When a cus- 
 tomer enters the store to purchase, the salesman gives attention to 
 his wants, and, in his pocket note book, or in any other form that 
 he may prefer or that may be directed by the management of the 
 establishment, makes a memorandum of the goods he desires to 
 purchase. It is expedient to make a preliminary li t in this way, 
 because customers frequently change their minds, and, after hav- 
 ing allowed the salesman to put down one article, request that it 
 be changed and something else substituted. It very frequently 
 occurs in establishments doing a mixed business — that is, making 
 some sales for cash, others on open account, and still others on the 
 
mimmti^mnm>^ 
 
 imber which 
 ited in legal 
 is set, or the 
 nded to the 
 itract which 
 to the cus- 
 d, including 
 or contract 
 le customer 
 found to be 
 ng out from 
 joods origi- 
 ; of the con- 
 on with the 
 :ombination 
 :self is busi- 
 ms in other 
 
 I time when 
 er of sets of 
 Isewherc de- 
 When a cus- 
 attention to 
 ;r form that 
 ment of the 
 le desires to 
 in this way, 
 d, after hav- 
 juest that it 
 y frequently 
 t is, making 
 thers on the 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 lease or contract credit plan-that it is a matter, determined only 
 after showing a customer through the entire stock of the estab- 
 lishment, that the salesman learns upon which of the several plans 
 the purchase is to be made. These reasons and others combmed 
 make it inexpedient to use the order blank with carbon sheets, as 
 above described, until the list of goods has been completed. When 
 prices have been agreed upon and the order has been made com- 
 plete the salesman writes out the bill in detail on whichever form 
 is appropriate, thus completing the transaction, supplying the cus- 
 tomer with his copy, furnishing the office with its record and pro- 
 viding the shipping department with necessary directions for de- 
 livering the goods. 
 
 Referring to the blanks which are shown in miniature fac- 
 simile on these pages, it will be seen that space is provided for the 
 name of the salesman, also for the O. K.-ing of the credit of the 
 customer. It is expedient that the salesman's name be added to 
 all the invoices which pass through his hands, for the convenience 
 of reference where questions are asked. The rule should be estab- 
 lished that no sale shall go through to be charged on the books 
 except it has the approval of the proprietor or credit manager. 
 
 By comparing the dififerent forms shown in fac-simile here- 
 with it will be noticed that in each set the one which is to be re- 
 tained in the office is wider than the others of its set, and that m 
 its extra width it is provided with an additional price and amount 
 column. This is for the extension of cost prices— "Tsoc," as it is 
 called on the Sales Record and in some other books of the Self- 
 Proving Accounting System. Every bill that is made out is thus 
 figured in duplicate, first for the selling price and second for the 
 cost price. These figures, as elsewhere explained, form the 
 foundation of the cross entry between Selling Account and Buy- 
 ing Account. The extra width on the office copy, after the costs 
 have been figured in this manner, may be detached, having first 
 
Itt 
 
 THE SELF-PKOVINQ 
 
 been permanently identified with the sale to which it belongs by 
 the sales number written in the blank space at the top. This plan 
 is of the nature of a precaution against spying and inquisitive eyes. 
 
 r 
 
 
 i 
 
t belongs by 
 ). This plan 
 uisitive eyes. 
 
 ■I J Al 
 
 ACCOUNTING SYSTEM 
 
 103 
 
 ORIGINAL OF ORDER FORM FOR INSTALMENT OR LEASE SALES. (EXAMINE 
 
 Successive Pages.) 
 
 J. F. BR OWN & CO. J 
 ar^ B oasc jiinilsltc rs 
 
 original of Sales Sheet for Cash or Open Account Sales- 
 CUSTOMER'S Invoice. (Examine Successive Pages.) 
 
 ^i i mMi^aliM i niiltir'-'"' ! '-''' -'■'" "' "" '•"" 
 
 
 ■MMMKHMMBi^'-' 
 
nf" 
 
 !> 
 
 Back of Cash Customer's Invoice 
 
ACCOUNTING SYSTEM 
 
 tM 
 
 FIRST CARBON COPY OF ORDER FORM FOR LEASE SALE-CUSTOMEH'S INVOICE. 
 
 'M 
 
 FIRST CARBON COPY OF SALE SHEET FOR CASH SaLE-FILED IN OFFICE. 
 
 j?ff-|tri 'iVinnm 
 
100 
 
 THE SELF rnoviNG 
 
 \ 
 
 ^■:ife 
 
 4. r. anowN 4 ca 
 
 
 Back of First Carbon Copy of Order Form for Lease Sale-Customer's Copy 
 
 OF Agreement. 
 
 Back of First Carbon Copy of Sales Sheet for Cash Sale. \ 
 
 ^ ■■■ 
 
 mmmmmltm^ 
 
Mtp i — 'i ■■ ! ■ '■ ■- ^f - 
 
 ACCOUNTING 8YHTEM 
 
 107 
 
 J f wmmn a co 
 
 IT*I 
 
 I %»mmt» 7 
 
 
 TOMER'S Copy 
 
 1 
 
 Second Carbon Copy of 
 
 ORDER form for LEASE SALE-REQUISITION ON SHIPPING 
 DEPARTMENT. 
 
 J. F. BROWN & CO. 
 
 Sale. 
 
 SECOND CARBON COPY OF SALES SHE.T-^^CASH SALE-REQU,S,nON ON SH,PP,N0 
 
 
 'mS^Siim^Sis> 
 
 ,.»^ 
 
LEASES, SALES. 
 
 t 
 f 
 
 CONTRACTS 
 MORTGAGES 
 
 AND CHATTEL 
 
 •II, 
 
 Long experience in the instalment and credit business has 
 demonstrated that it is advisable in all cases where goods are sold 
 on time that there should be the security of a lien or mortgage on 
 the goods. This is desirable, «irst, in the interest of the merchant 
 as against his debtor, and again, in the intercut of the merchant as 
 against other creditors of the debtor. With a clearly established 
 lien on the goods, they are not the customer's property, but in- 
 stead remain the property of the merchant until fully paid for, 
 while, on the other hand, without a lien, however honest the 
 debtor or customer may be, they are in jeopardy in case he be- 
 comes involved in his affairs, or in case an action is commenced 
 against him for any good reason. The goods under these cir- 
 cumstances are liable to be seized under execution, and where this 
 occurs the merchant's security is, of course, wiped out. 
 
 In such cases it is not unusual for the customer to say in 
 reply to requests for continued payments on the purchases: — 
 "The s-oods were sold under execution when I got into trouble 
 with Blank & Co. Now that they are gone, of course I cannot 
 undertake to pay for them, for I have not got the goods." Under 
 thf 3e circumstances there is nothing left for the merchant to do 
 but to sue the customer as an ordinary debtor. Every business 
 man knows that the chances for collecting under such conditions 
 are very poor. On the other hand, by making sales only upon 
 the lien or mortgage basis, the merchant always has the security 
 
ACCOUNTING SYSTEM 
 
 190 
 
 :hattel 
 
 usincss has 
 Dels are sold 
 lortgage on 
 le merchant 
 nerchant as 
 established 
 ■rty, but in- 
 lly paid for, 
 honest the 
 case he be- 
 commenced 
 ;r these cir- 
 d where this 
 t. 
 
 er to say in 
 purchases: — 
 into trouble 
 rse I cannot 
 ids." Under 
 reliant to do 
 /ery business 
 :h conditions 
 es only upon 
 J the security 
 
 of the goods themselves, or, at least, for so long a time as they are 
 
 in sight or can be located. 
 
 The exact terras upon which conditional sales are made de- 
 pend largely upon the laws peculiar to the State i^n wh.ch the 
 tansactions occur. The wording of the contract wh.ch the cus- 
 tomer signs at the time the purchase is made depends m some 
 degree upon the plan upon which it is intended to operate so far 
 as affects the ultimate rights of the merchant m ■: • .e of fa.hre o 
 pay Whatever may be the underlying plan, the wordmg should 
 be precise, unequivocal, and so strong as to give the merchan 
 every possible protection in handling a dishonest customer, and 
 leaving to his discretion whatever leniency it is desired to show to 
 honest but unfortunate people. 
 
 Under the same State laws different merchants w.ll elect 
 different forms of leases or contracts. In some cases the prefer- 
 ence is so marked that they refer in their adverttsemen^s o the 
 character of the agreements which they enter into w,th cus- 
 tomers, or bring the terms of the agreement forvvard as speaa 
 reasons why customers should prefer to deal w,th the,n^ I 
 inexpedient for any merchant to proceed in matters of th,s kn^ 
 without competent counsel. A good lawyer should be con ul d 
 with respect to the form of lease or contract to be used. In the 
 merchant's interest he should carefully consider the case, m view 
 of all the provisions of the laws of the State in which the transac- 
 
 tions are to occur. . 
 
 Several forms of contracts and leases are presented herewith, 
 which are to be regarded merely as suggestions. They are of^ 
 fered with the injunction that none of them is to be employed 
 until it has been revised by a competent lawyer in the hght of the 
 law as it exists at the time in the State in which it is to be used. 
 Attention should here be called to the fact that laws relating to 
 such matters vary from time to time, and that occasionally de- 
 
 i,Jt»ai&^i^ M t yM tto 
 
fifir 
 
 200 
 
 THE SELF-PROVING 
 
 
 cisions of the courts are rendered which have important bearings 
 upon matters of this kind. It is to the interest of the merchint, 
 therefore, to be in touch with his lawyer on points of this sort at 
 all times, not only at the beginning of the business, but regularly 
 thereafter. 
 
 The following is one of the simplest instruments of the kind 
 that we have ever encountered, and is presented as being typical 
 of what is used in several lines of trade in New York and vicinity, 
 wherein in many cases the value of the goods covered by such a 
 receipt runs to very large figures: — 
 
 6 1 
 
 
 A "borrowing" form 
 
 This certifies that has borrowed and 
 
 received of the articles noted on the other side 
 
 of this form upon the following understanding:— If the price set against thenl 
 Is paid in instalments at the times specified, then the articles are to become the 
 property of the said borrower; otherwise the articles remain the property of thd 
 
 said In the meantime the borrower hereby 
 
 agrees to keep the property in good order, and to pay the price, as per memo* 
 "randum above referred to, and at the times set forth. And the said borrower 
 may use the property free from any other charge. The said property is not to 
 
 be removed from without the written consent of 
 
 the said If the said borrower fails to meet 
 
 any of the payments at the time specified, or to keep the property in good 
 
 order, then the said may take the said property 
 
 and dispose of it to the best advantage, rendering to the said borrower all sur- 
 plus, if any, after paying the price agreed upon and the expenses of removal 
 and sale. 
 
 (Sign here) 
 
 Signed in presence of 
 
• «ii ' i-j.^ai!.,jiL.J_4.,_,.J.A ' ' . . Ji_ 
 
 tant bearings 
 he merchint, 
 ►f this sort at 
 but regularly 
 
 ACCOUNTING SYSTEM 
 
 201 
 
 The following form is used by a prominent firm of Toronto. 
 Canada, dealing in household goods upon the instalment plan:- 
 
 s of the kind 
 
 being typical 
 
 and vicinity, 
 
 ed by such a 
 
 s borrowed and 
 a the other side 
 et against then) 
 •e to l>ecome the 
 ! property of thd 
 )orrower hereby 
 e, as per memo* 
 e said borrower 
 •operty is not to 
 itten consent of 
 ir fails to meet 
 roperty in good 
 lie said property 
 •orrower all sur- 
 ases of removal 
 
 A CONTRACT FORM 
 
 This certifies that I have received this day of^ . . .... •• ■ • -^ - ■-- • • • -- 
 
 .goods as per invoice or order on the other side, H-^^'J,^,,,,,, ,^ 
 «!""'"•«' «« f ol^'^;-* ;„;;% rom the date hereof. It 
 
 i,e;;p^^yag;;ed;SC^uetoV.dgoo^^^ 
 
 included in contracts which niay herea «r be "^"^^ •^^^^^^^n.^s is fully paid 
 
 tracts shall have been fully complied with. 
 
 in cas. of failure to maUe any of -'^ P^^^-^^; ^^^^^^^^^ 
 wm surrender said goods to said firm, or I « «g«"t ^^'^^^'^^^^ ^^ ^,r„ey 
 of law. in case I fail to deliver said ^°°^!.^" ^"^^jf,"' ^^e^^^^^ hereby grant 
 at any time upon demand after any hrejch of tt^^^^^ agie^m ^ ^^^^^^^^ 
 
 to said firm, or its agent or attorney, ^f J^^^^^f^'J.XTthem liable for an? 
 
 and expense in connection with this transaction with me. 
 
 „c^ thnt If said firm takes possession of said goods for any 
 
 company. 
 
 ,,ltbout written notice to .aid «™ »f J^^"^" „ „„a™,a„amg, ve,l»l or 
 •^^Z-^, S;;r ::^ir.U' lla'TnTo-'l, o, «, .... .. ...e-oen. 
 
 Other than is here expressed. 
 
 ^e a.. l.«..n.en. ««» - ^-'rLri.^J.'nn" S "S^" 
 
 within 
 
 payment during each succeeding 
 
 ,n „e even, o, -- '» -^'.^f ^.r^Jn" Sir»: Z 
 behalf to claim any of said goods as exempt oy »»« nv 
 
 L>., 
 
 ^a s.gi-i'HAi 
 
IT' 
 
 202 
 
 THE SELF-PROVING 
 
 vised Statutes of Chapter and all its amending 
 
 acts shall in no way apply to affect this contract. 
 
 Signed this day of 189.. 
 
 (Sign here) 
 
 In presence of 
 
 Husband's occupation. 
 
 Where employed 
 
 References 
 
 The following form also had its origin in the Dominion of 
 Canada, and resembles the one last presented in all essential par- 
 ticulars, but is fuller in various details: — 
 
 ANOTHER CONTRACT FORM 
 
 This certifies that I have purchased from 
 
 goods as per invoice on the other side, and attached hereto, on the terms and 
 
 for which I agree to pay $ as follows:—? cash 
 
 down and balance in 
 
 payments of ? each, from the date hereof. 
 
 It is expressly agreed that the property in and title to said goods and to all 
 other goods which are included in and the subject of contracts which have been 
 
 heretofore made, or may hereafter be made by me, with the said 
 
 shall not pass from the said 
 
 until the said sum of $ is fully paid, and all the dues, terms and 
 
 conditions of this and said other contracts shall have been fully complied withi 
 
 The said may pay any rent and taxes due 
 
 on premises wliere said goods may be, and such sums shall be forthwith pay- 
 able by me to them. On default in any of the above payments or if goods shall 
 be seized for rent or taxes, or if tlie rent of premises where goods are shall be! 
 [overdue, or if I shall abandon, dispose or attempt to dispose of the same or 
 
 remove them from No street, without permission, the whole 
 
 sum agreed to be paid shall immediately become due and payable, and my 
 right to possession of said goods shall cease, and all payments shall be forfeited 
 to the said as reasonable compensation for in- 
 Jury to and use of said goods and expense and trouble in regard to same, and 
 the said or his agents may, without legal proc- 
 ess, enter upon any premises and take possession and remove said goods at any 
 time during the day or night, without being llaWe for any manner of trespass. 
 
 rill 
 I'll 
 
 ^^jiiittMiiTiiimri imvfiiM 
 
 ,«fc.' ifciiu»iriwiiiijfl'iniiniiiin 
 
I 
 
 Ite amending ■ 
 
 Dominion of 
 :ssential par- 
 
 the terms and 
 
 cash 
 
 and balance In 
 he date hereof, 
 foods and to all 
 rhlch have been 
 1 
 
 lues, teruiB and 
 complied with; 
 and taxes due 
 forthwith pay- 
 )r if goods shall 
 ods are shall bd 
 of the same or 
 8ion, the whole 
 ayable, and my 
 hall be forfeited 
 ensatlon for in- 
 rd to same, and 
 hout legal proc- 
 lid goods at any 
 mer of tri>8pass. 
 
 ACCOUNTING SYSTEM 
 
 203 
 
 A«d .t .be option «P«n ."cb .eUure .. ''■;«''>;-;•;-;■ ;;,„• --,._ '.^d «,« 
 
 onifl nfter civinc credit for proceeds of sale; or the saia • • • • 
 
 mlvMvlSiigrds valued and retain same, and may then forthwith recover 
 TomTe ba ance of said amount agreed to be paid, together with expenses of 
 s "^and "luation. after giving credit with amount of said valuation. 
 
 Should the said. 
 
 take possession of said gooda 
 
 1 shall have right to red'eem same" ai'any' time within twenty days tbereafter 
 iTuponpa^^g. 11 balance Of ..;.t^^^ 
 
 Incurred by reason of taking possession aforesaid. 
 
 In the event of seizure for rent I hereby authorize the said J V " Z ' ' 
 
 In the event or ^ u,y behalf to claim any of said goods ab exempt by law 
 
 fi^m' distress' " Revised Statutes Chapter and al 
 
 arndlng aSs shall in no way apply to or affect this contract. Any promissm-y 
 notes or other securities given by me at any time shall be collateral only hereto, 
 i preedTngl may be'taken thereon without In any way affecting or preju- 
 dicing this agreement. 
 
 And It is hereby agreed that, having purchased other goods under con- 
 tracts from the said •••••• -theeald ' -j^-j^" ^^^j^; 
 
 . . . .agree* that so long as I shall pay $ to umi tnaa 
 
 I shal'l'not be required to pay more, but In default In any of said payments all 
 Ltnems piovlded for by said contracts shall Immediately become due and 
 S're 111 payments made by me on this or any other -tract may^ be 
 
 TonCcVn^sr'irjreruti^^^^^^^^ 
 
 mine to tScontrary notwithstanding. Nothing herein shall affect the provi- 
 sions of any of said contracts, save as to the payments aforesaid. 
 
 Signed this day of. 
 
 189.. 
 
 (Sign here) . 
 
 In presence of 
 
 Husband's occupation. 
 
 Where employed 
 
 References 
 
 
 '^i 
 
 I' y ■■■''?.■'«• 4. Ad Jii.i--4-ia<i^=.-.J 
 
 .)>-^4^it2M^jik'.i^- H Bii-i i inii i ii 
 
2M 
 
 THE SELF-PROVING 
 
 Some of the large furniture instalment dealers in the neigh- 
 borhood of New York prefer the chattel mortgage form to the 
 lease or contract method. The form of chattel mortgage in use 
 by one of these concerns is given below: — 
 
 A CHATTEL MORTGAGE FORM 
 
 To all to whom these presents shall come:— 
 
 Know ye that I ••;• ' °' *^! *=**L°'- 
 
 county of .and State of New York, party of 
 
 the 'first "part, for securing the payment of the money hereinafter mentioned, 
 
 and In consideration of the sum of one dollar to me duly paid by 
 
 of the same place, party of the second part, at or before the 
 
 ensealing and delivery of these presents, the receipt whereof Is hereby acknowl- 
 edged, have bargained and sold, and by these presents do grant, bargain and 
 fsell unto the said party of the second part all the household furniture and 
 housekeeping effects, and all other goods, chattels and property mentioned andl 
 described in the schedule hereunto annexed, In th^^ house known as and by thfl 
 
 street number 
 
 To have and to hold, all and singular, the goodu and chattels above bar- 
 gained and sold, or intended so to be, unto the said party of the second part, 
 
 their successors and assigns forever. And I, ' 
 
 the said party of the first part, for myself, my hel' s, executors and adminis- 
 trators, all and singular the said goods and chattels above bargained and sold 
 ,unto the said party of tlie second part, their successors and assigns, against 
 me, the said party of the first part, and against all and every person or persona 
 whosoever, shall and will warrant and forever defend. 
 
 Upon condition that if I, the said party of the first part, shall and do well 
 and truly pay to the said party of the second part, his successors, or assigns, 
 
 the Just "and full sum of dollars, payable as follows, vlz.:- 
 
 dollars now in hand, the receipt whereof Is hereby acknowl- 
 
 ^g^] * " dollars on delivers' of the above mentioned furniture, 
 
 dollars on the day of 18 
 
 and the residue, amounting to dollars In payment of 
 
 dollars on the day of each and every 
 
 hereafter until said sum of dollars is fully paid, which said sum 
 
 and sums I, the said party of the first part, do hereby covenant to pay. 
 
 Then this transfer to be void and of no effect; but in case of Jion-payment 
 of the said sums at the time or times above mentioned, then the said party 
 of the second part shall have full power and authority to enter upon the 
 premises of the said party of the first part, or any other place or places where 
 the goods and chattels aforesaid may be, to take possession of said property, 
 
I in the neigh- 
 e form to the 
 Drtgage in use 
 
 city of 
 
 (W York, party of 
 Dafter mentioned, 
 
 id by 
 
 at or before the 
 s hereby acknowl- 
 rant, bargain and 
 old furniture and 
 rty mentioned andl 
 >wn as and by tha 
 
 battels above bar* 
 ■f the second part, 
 
 t 
 
 itors and admlnls- 
 largalned and sold 
 d assigns, against 
 
 person or persons 
 
 , shall and do well 
 lessors, or assigns, 
 as follows, viz.:— 
 3 hereby acknowl- 
 jntloned furniture. 
 
 18.... 
 
 lyment of 
 
 ^ery 
 
 Id, which said sum 
 ant to pay. 
 
 ise of jion-payment 
 hen the said party 
 to enter upon the 
 ice or places where 
 n of said property, 
 
 205 
 ACCOUNTING SYSTEM 
 
 keeping of the said property), *« "PP'^;" ,f ?."'' titne deem their lien upon 
 ^se the said party of ^^^^'^^^^^^'^f^l them or Selr legal representative 
 Bald property unsafe, it shall be lawful for them o^ ^^ ^^^ 
 
 I take possession of said P-P«2;d-„Vt payment of said debt, applying the 
 previous to the time above ""^"tloned for he pa> ^^^^ ^^^ ^^p^„g „, 
 
 proceeds as aforesaid, after ^;,^"f '"f/"^^^^^^^^^^^ fall to satisfy said debt 
 Lid property. If from any ca e sa^ J^f^^the first part, do covenant and 
 interest, costs and charges. L tlie«aid partj ^^^erstood and agreed to. by 
 ■agree to pay the deficiency, ^ndjt is distinctly ^^^ ^^ ^^^^^^.^ ^^^^ 
 
 the parties hereto, that the said P^^^ "^J^'™ ^ut the written consent of 
 the said goods and chattels from said pxem^esw ^^ ^^^^^ ^^ ^^^ ^^^^^^^^ 
 
 the said party of the «econd Part^ ^^^^rand continue in the quiet and peace- 
 
 rbirpsron :; z^i^^ ^^^ «- - - -^ '-- ^"^"^™^ " 
 
 " riess whereof I. the said party of the first part, -- ^rndlS 
 
 hand and seal the ^'^^ °^ 
 
 hundred and ninety 
 
 Sealed and delivered In presence of 
 
 (L.S.) 
 
 (L.8.) 
 
 .A.' 
 
r 
 
 DELIVERY OF GOODS 
 
 In our description of Sales Sheets we have shown that one 
 of the carbon copies passes to the shipping department and be- 
 comes in effect a requisition upon that department for the goods 
 which have been sold, and that it carries upon its face the direc- 
 tions for their delivery. The shipping department is under the 
 necessity of giving to the truckman or carter similar directions 
 concerning the goods which are intrusted to him for deHvery, 
 and is also obliged to provide a form of receipt, to which the de- 
 livery man is to get the signature of the customer or his repre- 
 sentative in evidence of the proper delivery of the goods in- 
 trusted to him. 
 
 The shipping department finds it advantageous to use the 
 carbon process the same as the office, and on receipt of directions 
 for delivery of goods from the office makes out a shipping ticket 
 in duplicate, one copy of which is to be left with the customer 
 when the goods are delivered, and one of which, signed by the 
 customer, and also countersigned by the carter or truckman, is 
 returned to the office. 
 
 By leaving \ ith the customer a copy of the shipping ticket 
 there is supplied to him the evidence of the completion of the 
 transaction, so far as the store is concerned, and he is thereby 
 afforded the opportunity to raise objections if anything is not ac- 
 cording to expectations. The reason for having the truckman 
 or carter sign the receipt, as well as the customer, turns on a ques- 
 tion of evidence in the event of a disputed account. Very fre- 
 
 >>fe- 
 
own that one 
 ment and be- 
 for the goods 
 ace the direc- 
 ; is under the 
 ilar directions 
 I for deHvery, 
 which the de- 
 or his repre- 
 ;he goods in- 
 ns to use the 
 t of directions 
 hipping ticket 
 the customer 
 signed by the 
 ■ truckman, is 
 
 hipping ticket 
 pletion of the 
 he is thereby 
 liing is not ac- 
 the truckman 
 irns on a ques- 
 nt. Very fre- 
 
 ACCOUNTING SYSTEM 
 
 quently the person who bought the goods is not present at the 
 time of ddivery, and the receipt, accordingly, is signed by the 
 wife, a son or daughter, a servant, or even a friend of the family 
 who happens to be present. Afterward, when any question 
 arises, the receipt may be disputed on the groi=nd that the person 
 who signed it was not authorized to do so. Q .lestions of this 
 kind are frequently raised so long after the date of the transac- 
 tion that the unaided memory of the truckman is not as much as 
 the merchant would like to have in support of his contention. 
 Bv requiring the truckman to sign the receipt there is secured the 
 equivalent of a witness to the signature or the act of the person 
 who receipts for the goods. In practice this has been found to 
 be a very desirable precaution. 
 
 When the truckman or carter's receipt, or the shipping 
 ticket as we have called it above, reaches the office, it is checked 
 with the office copy of the invoice or order, for the purpose of 
 proving not only that the goods called for by the order have been 
 delivered, but that all the goods which have been delivered are 
 covered by the order. The truckman's receipt or shipping ticket 
 bears a serial number of its own, and in addition there is noted on 
 its face the number of the order or invoice to which it belongs. 
 The first reason for checking mentioned above is not of great im- 
 portance in itself, because if all the goods ordered had not been 
 ddivered the customer would soon draw attention to the fact, 
 but in addition it is valuable in the sense of detecting careless- 
 ness upon the part of the delivery department. The second rea- 
 son is more important, for it is always desirable to know that no 
 goods have been delivered that are not covered by the invoice or 
 order Carelessness in the delivery department might cause the 
 delivery of articles from time to time not called for by the orders, 
 but by the plan of checking here suggested no such dehvery 
 could remain undiscovered except by the collusion of some one m 
 
«r* 
 
 908 
 
 THE SELF-rROVINO 
 
 the delivery department with the truckmen. 
 
 The merchant is always anxious to know what security he 
 has against a careless delivery of goods— that is, the delivery of 
 goods without proper charge to the customer— and also against 
 the dishonest delivery of goods by some one whose intention it 
 is to defraud him. Irregularities of this kind are very largely 
 guarded agait.st by the fact that an adequate system throughout 
 the establishment is in existence and is being rigidly enforced. 
 Dishonest men, as a rule, are afraid of a system, for their tempera- 
 ment seldom enables them to comprehend the system in its com- 
 pleteness, and therefore they are always afraid of encountering 
 its safeguards in some unexpected direction. The system de- 
 scribed in this volume, provided, as it is, with numerous cross ref- 
 erences, and with the diflferent blanks and forms required in its 
 use. manifolded from a single writing and used for different pur- 
 poses, affords far more checks against dishonesty and fraud than 
 would be assumed on casual inspection. 
 
 The rule once established that no sale shall be made, either 
 for cash or to be charged, except a sales number is applied to the 
 order or invoice slip, and the rule also established that no goods 
 shall be delivered by the delivery department to the truckman, nor 
 by the truckman to the customer, except also the sales number 
 be present, and further, that the delivery ticket, which is in dupli- 
 cate, shall also be numbered, leaves the dishonest clerk far less 
 opportunity for successful efTorts to defraud than would be at first 
 supposed. The rigid enforcement of the regulations to which 
 we have referred successfully guards against the delivery of goods 
 without charge in all cases save only where there is a conspiracy 
 between two or more men in the establishment having the ability 
 and opportunity to control the numbering and duplicating. 
 Methods for guarding against this danger will readily suggest 
 themselves to every competent manager. They include, among 
 
 u- 
 
1 
 
 
 at security he 
 he delivery of 
 d also against 
 se intention it 
 e very largely 
 m throughout 
 jidly enforced, 
 their tempera- 
 em in its com- 
 ; encountering 
 he system de- 
 ^rous cross ref- 
 required in its 
 r different pur- 
 and fraud than 
 
 ACCOUNTING SYSTEM 
 
 209 
 
 Others, such efforts as dally auditing, periodical checking of the 
 work .frequent examinations of stock, and the like. 
 
 'i 'I 
 
 )e made, either 
 5 applied to the 
 that no goods 
 ; truckman, nor 
 e sales number 
 hich is in dupli- 
 5t clerk far less 
 vould be at first 
 itions to which 
 elivery of goods 
 ; is a conspiracy 
 iving the ability 
 nd duplicating, 
 readily suggest 
 include, among 
 
 ** 
 
•ffm^m 
 
 i 
 
 i 
 
 1 
 
 CUSTOMERS' PAY CARDS 
 
 A very convenient style of customer's pay card is formed of a 
 sheet of good ledger pape 7^ inches wide by 8i inches long, 
 folded in the centre lengthwise. The card thus folded is printed 
 on all four pages, with proper debit and credit spaces. There is 
 first in the debit space the name and address of the customer, 
 together with the name of the house carrying the account, and 
 space for recording the customer's ledger number. Below this 
 and, for convenience, turned the opposite way on the page, is a 
 blank account form, having columns for date and for the amount 
 of the purchase, following which is a column for the sales num- 
 ber and a liberal space for terms of payment. In the form illus- 
 trated herewith, which is essentially the same as that employed 
 by several prominent instalment houses, the debit space allows 
 
 for twelve charges. 
 
 The other three pages of the pay card are devoted to credit 
 amounts or payments. The pages are ruled with a column for 
 the date, a column for the amount paid, following which is a|pace 
 for the collector's name. To the right of this is a second date col- 
 umn and a space for a brief report concerning any matters which 
 come to the collector's attention, to be recorded in the briefest 
 manner by any convenient code. This code should be based upon 
 the plan of having all ordinary statements which customers make 
 either of promises, or reasons for failure to pay on time, or of 
 other particulars, indicated by letters or combinations of letters 
 or figures. A single letter or character, therefore, could indicate 
 what it would otherwise require a lengthy statement to record. 
 
 iL 
 
ACCOIJNTIXG SYSTEM 
 
 •11 
 
 is formed of a 
 inches long, 
 [led is printed 
 :es. There is 
 the customer, 
 account, and 
 . Below this 
 the page, is a 
 :)r the amount 
 he sales num- 
 the form illus- 
 that employed 
 t space allows 
 
 oted to credit 
 1 a column for 
 diich is a ^pace 
 ;cond date col- 
 matters which 
 in the briefest 
 be based upon 
 ustomers make 
 on time, or of 
 tions of letters 
 , could indicate 
 nt to record. 
 
 ■ When a customer ope.is an account with the house, pay 
 cards of this form are made out in duplicate, one copy gomg to 
 
 FIRST AND FOURTH PAGES OF CUSTOMER'S PAY CARD 
 
 the customer and the other being retained by the merchant for 
 the use of his collectors and ledger keepers. The pay cards are 
 commenced .by entering thereon the charge for the goods bought, 
 with notation of terms. The copy delivered to the customer 
 serves to keep him informed of what he is expected to do at all 
 times, and the copy used by the collector serves to keep him 
 posted as to the dates that payments are due. The customer s 
 copy serves the purpose of a receipt for the payments made, thus 
 
212 
 
 THE SELF-PROVING 
 
 facilitating the work of the collector, while the copy in the hands 
 of the collector forms the basis of his report to the office of the 
 
 
 
 CndK 
 
 ^" ' 
 
 «™ 1 
 
 ^ ! 
 
 ertnnniiMi ^^^^S- 
 
 
 
 
 
 
 BnxAikmH ! 
 
 
 
 
 
 
 MAM* ■ — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .n 1 
 
 ^ 1 
 
 HUUTMriHIII 
 
 fmmntm 
 
 
 
 
 
 
 
 *ML 
 
 
 
 
 BiMfhi lorwud 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 ._fiEl^ 
 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 __ 
 
 _^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Second and Third Pages of Customer's Pay Card 
 
 collections made. It is also his reminder of when he should call 
 again. 
 
 On every pay card there should be a notation of the cus- 
 tomer's sales number. This, as a basis of cross reference, serve* 
 a very useful purpose. The customer calls at the office for the 
 purpose of making a payment or making some inquiry concern- 
 ing the account, and which necessitates a reference to the ledger. 
 The most natural thing in the world, under the circumstances, is 
 
 n,rcsm 
 

 ^ in the hands 
 e office of the 
 
 Cndlt 
 
 ,,„ auitnnMi 
 
 mm* 
 
 JUL 
 
 jm. 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 he should call 
 
 on of the cus- 
 ;ference, serve* 
 t office for the 
 iquiry concern- 
 ; to the ledger, 
 rcumstances, is 
 
 ACCOUNTING SYSTEM 
 
 218 
 
 'o ask, "Have you your pay card with you?" Th.s bemg pro- 
 duced, the receiviug clerk uo.es a. ouce the sales uumber, aud 
 turniug to the Sales Record, at ouee obtains the ledger uumbcr, 
 with far less work than would be necessary if the customer s name 
 had been asked and reference made ,0 an alphabet.cal .ndex^ 
 Where a large number of accounts are open, as ,s the case m the 
 instalment business, it frequently occurs that there are acons.der- 
 able number of names so nearly alike that ,t ,s difficult to dis- 
 tinguish between them, particularly by sound The correct 
 nal is found in some cases only by identification by means of the 
 street address. On the other hand, sales numbers >- "ever du- 
 plicated, and therefore the method of rcachuig the ledger above 
 described becomes specially desirable. 
 
 . The pay card is only a duplicate of the ledger account, and 
 therefore, if by accident it is lost or destroyed it can be restored 
 by making a copy from the ledger. Inasmuch, also, - '^e offic. 
 pay card, that is, the copy which the collector uses ts only a dup^^■ 
 cL of the one which the customer retains, it ts Ukewtse poss.ble 
 to restore what is lost by comparison in that direc, :o„. As a fact, 
 it is found in practice that pay car.ls are seldom lost or destroye , 
 and therefore the precaution which some beginners at the bus. 
 ness feel that it is necessary to take-namely, keepmg a record of 
 Tcards that are taken out by coUector^is entirely unneces- 
 
 '"' A supervision and periodical examination of the pay cards is 
 desirable, particularly in the sense of watching the work of the 
 cictor and in general supervision of the coUe -n department^ 
 This may be accompHshed in part by the manager handling the 
 pay cards at stated intervals, aud it is also partially accom- 
 plished by the reports of the bookkeeper or ledger keepers, who 
 hat Istant occasion to use the cards in connection with ledger 
 work. 
 
;T!' 
 
 814 
 
 THE SBILF-PROVING 
 
 The pay card is the natural foundation of all letter writing, 
 where it is necessary to communicate with the customer. It also 
 forms the foundation of communication with the collection attor- 
 ney or solicitor of the establishment, where it is necessary to put 
 the account in the way of formal collection. At every hand the 
 pay card is required. If an adequate means of caring for the pay ^ 
 card is provided, then supervision and their constant use will en- 
 sure their being kept in proper place. j 
 
 It is sometimes urged by those who are not acquainted with 
 the requirements of the instalment business that keeping an ac- 
 count with each customer on the ledger, and, in addition, main- 
 taining duplicate account on the pay card, posting every entry 
 that occurs to each, and keeping not only the ledger properly in- 
 dexed, but the pay cards so assorted as to make the latter just 
 as available on call as the accounts in the former, is doing double 
 work. New beginners at the business frequently set about devis- 
 ing plans by which this apparently extra work shall be overcome, 
 or the necessity for it removed. When it is recalled, however, 
 that in other lines of trade every customer receives a statement 
 of account the first of each month, and that in those lines where 
 collectors are employed duplicate statements and collection Hsts 
 are freely made out from time to time, it becomes apparent that 
 as a fact there is less duplication of work in the instalment busi- 
 ness, with the system of customers' pay cards in use, than in al- 
 most any other line. 
 
 By the methods recommended in connection with the Self 
 Proving Accounting System, the customer at the outset is fur- 
 nished with an invoice which is a duplicate of the charge sheet, 
 from which the amount with which his account is opened in the 
 ledger is posted. On the back is a duplicate of the signed lease 
 or contract. Then, in turn, the customer is furnished with the 
 Pay Card, which is, in fact, a duplicate of the ledger account, for 
 
 UILUmi i'iir»'a» 
 
;tter writing, 
 mer. It also 
 lection attor- 
 essary to put 
 ery hand the 
 g for the pay 
 it use will en- 
 
 ijuainted with 
 eeping an ac- 
 Idition, main- 
 y every entry 
 ;r properly in- 
 ;he latter just 
 doing double 
 t about devis- 
 be overcome, 
 lied, however, 
 ;s a statement 
 se Unes where 
 :ollection lists 
 apparent that 
 stalment busi- 
 se, than in al- 
 
 wiih the Self 
 ; outset is fur- 
 ; charge sheet, 
 opened in the 
 le signed lease 
 ished with the 
 er account, for 
 
 215 
 ACCOUNTING SYSTEM 
 
 his record of the transaction, inclnding additional purchases if 
 "any, and payments as they are made. In due cottrse the 
 Pay Ca d wil show that the obligation incurred when the pur- 
 chase Cas made has been duiy discharged by the payments made, 
 and which have been received for thereon. ^^ ^^^ ^ 
 
 Every one will admit the desiraniiity oi t , -^v, , 
 
 supplied with an invoice in some such manner as th,s, and w,th a 
 dement of account or passboo. recording the ^^sjent e. 
 tries in connection with the purchases as they are made. How 
 the collections may be managed, there is the "eed also of a 
 tatement of each account for the collector. This ,s afforded m 
 ircrnvenicnt shape by a duphcate of the customer's pay car 
 lof which goes to show that the pay card plan ,s econom,ca as 
 1, alconvLent. Customers' pay cards are arranged m pads 
 ::: :L onginal and duplicate are readily -^-ut tog.he 
 carbon process, thus lessening work m this regard. The o gma 
 hJw ver, should be in ink and not in pencil, but thts cond.uon 
 readily complied with by employing a specal pen, adapted for 
 s ,ch workand some of the best grades of carbon papers ha. ar 
 ,lJ market It is possible to make a carbon duphcate of 
 :::;:ri"tMs way .most as easily as a d.pHcate of pencil 
 
 ""'nans which make use of pay cards are much better than 
 
 some of hose which formerly prevailed in the instalment bust- 
 
 It^ as they did, the carrying around of the ongmal 
 
 ness, mvolvmg, as they , ^^^^^^^^ mortgages, 
 
 Uases or ^ntract^- T^ e-^^ - ^^^ ^^ ,^,^^^ ,^ ,„„,„,.,,, 
 rbTtrpTe :.rm:rh':d -nstruments that are carefully and 
 
 tematicai; preserved in the office, ^hey are ahva,. rea y 
 reference whenever it is necessary to examme them. In the case 
 o, a chattel mortgage, it can be filed on short not.ce ,f such a 
 course is found necessary. 
 
iii 
 
 COLLECTION BOOKS 
 
 An alternative plan for consideration in place of the pay cards 
 elsewhere described in this volume is a collection book for each 
 collector. The books should be of convenient size for carrying 
 in the pocket and suitably bound to be durable. The books are 
 arranged as follows:— On the left hand pages, either in alphabet- 
 ical order or according to a predetermined route Ust, the names of 
 the customers and their addresses are written, with particulars of 
 their purchases, the amount of the bills and the terms of payment 
 agreed to. On the right hand pages are arranged in columnar 
 form spaces for recording the payments, each column having its 
 own special date. Five columns to the month 3 re provided. On 
 the specified dates the collector calls upon the customer, and on 
 receiving the payment enters it in the column of that date. A 
 formal receipt is given the customer for the payment. 
 
 The amounts of successive collections on a given date are 
 entered in the column for that date on ihe several pages of the 
 book. On returning to the office the collector delivers the book 
 to the receiving clerk, who foots the amounts recorded in the book 
 and enters the total in ink at the bottom of each page. The sev- 
 eral pages are similarly summarized. The grand total thus deter- 
 mined represents the amount which the collector should turn over 
 
 in cash. 
 
 The amount collected for the day is entered in lump m the 
 cash book to the credit of Instalment Accounts, and from the col- 
 lection books the postings are made direct to the individual ac- 
 
 if 
 
 mwtmhmm 
 
ACCOUNTING SYSTEM 
 
 217 
 
 5ay cards 
 for each 
 carrying 
 tooks are 
 ilphabet- 
 names of 
 iculars of 
 payment 
 columnar 
 laving its 
 led. On 
 r, and on 
 date. A 
 
 date are 
 
 res of the 
 
 the book 
 
 I the book 
 
 The sev- 
 lius deter- 
 turn over 
 
 mp in the 
 m the col- 
 vidual ac- 
 
 counts in the instahnent ledger, the same as elsewhere described 
 in connection with customers' pay cards. The books are appro- 
 priately indexed, and when not in use are kept in a safe, to be de- 
 Hvered to the collectors from time to time, according to dates and 
 routes. This plan, while being different in detail from what is 
 reconmiended in this volume, has been found to work very satis- 
 factorily in certain prominent establishments. 
 
KEEPING CUSTOMERS' PAY CARDS 
 I, is exceedingly important that tlte office file ot customer.' 
 pav cards sho.dd be kept in sucl, order that any indmdnal card 
 may be instantly referred to whenever wanted, either .n the sens 
 of producing the card when the customer calls w.th - l«>n-"' " 
 for use for any other purpose in the office. The c-ds nnjs 1 
 be filed in such a form that each individual card may be kept n 
 p oper place a: different times, with respect to dates of payment 
 Td collectors' routes. A very convenient method of fihng cus- 
 om ert' cards employs a series of pigeonholes '^^^^^^^^ 
 liues to correspond with the time divisions, and from nght to left 
 to correspond with alphabetical divisions. ,..,.„ 
 
 An instalment store, doing a business of moderate s,.e, m- 
 olovs a case of pigeon holes, four deep vertically, and .n number 
 froTrigh to leff sufficient for the necessary alphabetical d.v,- 
 I I. U illustrated in the first of the accompanymg engrav- 
 r The upper section in each alphabetical dtvtston ,s devo ed 
 towards pastle. The second division is O-oted .o card h 
 oavments on which become due the present week. The third 
 ZZ is devoted to those cards on which the Pay-- - 
 due next week, or later, while the bottom division is M scellane 
 ou • and is u ed for such purposes as ma, be appropriate with 
 I ca ds thus assorted. The cards are carefully examined fom 
 :::: time, never less ,re,uently than once each week^ and are 
 .uoved from one division to the other as returned by the c„u 
 tors. They are reasserted from time to time as the route 
 
ACCOUNTING SYSTEM 
 
 210 
 
 )S 
 
 customers' 
 vicinal card 
 n the sense 
 )aynient, or 
 s must also 
 
 be kept in 
 of payment 
 
 filing cus- 
 d in vertical 
 right to left 
 
 ite size, em- 
 d in number 
 betical divi- 
 r^ing engrav- 
 n is devoted 
 to cards the 
 The third 
 ments come 
 "Miscellane- 
 opriate with 
 amined from 
 reek, and are 
 y the coUec- 
 le route lists 
 
 are arranged for different collectors. The division in which the 
 past due cards are placed is examined daily, because all the cards 
 therein are past due, and selections from among them must be 
 made for the different collectors, according to the recorded piom- 
 ises of the customers to pay. 
 
 In another instance, two cabinets arranged very much in 
 the form just described, are contained in a safe. Their appear- 
 
 A PiQEON-HoLE Cabinet for Keeping Customer's Pay Cards 
 
 a nee when the safe door is open is indicated in the second of the 
 accompanying engravings. Here the time divisions are by days 
 instead of weeks, and are arranged in vertical columns, while the 
 alphabetical divisions are horiaontal. By examination of the en- 
 graving it will be seen that the photograph from which it was 
 made was taken on Wednesday, for all the cards of the Wednesday 
 division are out, indicating that the collectors had left the office 
 
 ■1/^ 
 
 14 
 
 ..J 
 
ACCOUXTINQ SYSTEM 
 
 221 
 
 before the photographer was ready. This arrangement of cards 
 does not provide for "Past Dues" as a separate division, but is 
 managed upon the plan of handUng all the cards as often as once 
 a week. 
 
 Very large portfolio or telescopic files are sometimes em- 
 ployed for containing the office set of customers' pay cards. One 
 
 A Portable Accordeon File for Holding Pay Cards:-Closed and Open 
 
 of these is shown in the third and fourth of the accompanying en- 
 gravings, one view showing it open and the other closed. It will 
 be seen that the file is six divisions in width, corresponding to the 
 
THE SELF-rUOVINO 
 
 business clays of the week, while the divisior, ^ in the opposite direc- 
 tion are indexed alphabetically. Still other plans are ii. use for 
 caring for customers' cards, ranging from the most elaborate cabi- 
 net work on the one hand to very cheap conveniences on the 
 
 other. 
 
 When a very large business is conducted several cabinets or 
 files arranged upon one or the other of the plans here described 
 will be found necessary. In such cases each cabinet is to be re- 
 stricted to some geographical division of the trade covered, or to 
 a single collection route. The individual cards should carry a 
 refere'nce to the f^les in \^hich they belong. In large establish- 
 ments in the cities, where vaults are a regular feature of store 
 buildings, the cabinets may be constructed as a part of the perma- 
 nent furniture uf the vault, and the necessary work to be done in 
 connection with the cards can then be performed in the vault. 
 In smaller stores it is found desirable to have the cases or cabinets 
 built of a portable form, so as to be readily put into safes over 
 night. Where store buildings are measurably proof against Hre, 
 or the office is away from special fire risks, the cabinets containing 
 the customers' cards may be left in the open office. When the 
 cabinets are left in the office some of the sheet metal cases which 
 are now furnished by the leading office equipment companies 
 serve an excellent purpose, for even where a fire occurs the papers 
 within cases of this kind are preserved until long after a wooden 
 case would be consumed. Instalment merchants, of necessity, 
 must elect for thenselves what plans to pursue so far as these de- 
 tails are concerned. The fundamental requirements are accessi- 
 ' bility at all times, convenience in handling and proper subdivi- 
 sions in order to classify according to the dates of payments and 
 the routing plans of the collection department. 
 
 ■.v 
 
ite direc- 
 h use for 
 rate cabi- 
 ;s on the 
 
 f 
 
 ibinets or 
 described • 
 to be re- 
 red, or to 
 d carry a 
 establish- 
 e of store 
 he perma- 
 De done in 
 the vault. 
 )r cabinets 
 safes over 
 s^ainst fire, 
 containing 
 When the 
 ases which 
 companies 
 the papers 
 r a wooden 
 i necessity, 
 IS these de- 
 are accessi- 
 )er subdivi- 
 yments and 
 
 POSTING THE INSTALMENT EEDGER 
 
 Some merchants have been discouraged when investigating 
 the general conditions of the instalment business Ijv the large of- 
 fice machinery apparently necessary for properly managing ac- 
 counts, on which the payments are so small. The instalment busi- 
 ness of necessity is composed of many small items. There are nu- 
 merous customer, buying comparatively small amounts of goods 
 each, and fheir weekly or mcntlily payments are in still smaller 
 amounts. The number of entries to be made in each accouht, 
 therefore, becomes ver\- large. For example, a bill of goods 
 amounting to $25 will be sold, with $3 paid down and the balance 
 to be paid in forty-four weekly instalments of 50 cents each. Busi- 
 ness men. accustomed to large transactions, are therefore appalled 
 at the amount of bookkeeping apparently necessary to properly 
 look after a very large number of accounts of this character. The 
 expense of taking care of a single transaction seems to be so great 
 as to leave no margin for other costs, to say nothing about a final 
 
 profit. 
 
 The account books supplied by the Self-Proving Account- 
 Book Company, and described in detail in this volume, are all ar- 
 ranged upon a plan to reduce the office labor to a minimum and to 
 facilitate such proofs step by step as will insure accuracy of result 
 throughout without tedious rechecking. All this has been fully 
 set forth on other pages. In addition, however, to what has been 
 elsewhere presented, a glance at the method of posting the Instal- 
 ment Ledger will show how numerous accounts may be handled in 
 
 11 
 
 
 ii 
 
 'iff 
 
 ^ 
 
^„j THE SELF-rnOVINO 
 
 this book in a «y to make the expense very mall imleed 
 
 As elsewhere ex,>hine,l, .be amount ol casb eoUeCed by ach 
 i„„ivi.h,al collector is en.erc.1 on Ibe pay canls as it is reccved. or 
 ; a collection book. i. ,b.,, P-an is employed. Tbe to.a as ,n^ 
 dicatcl bv bis report, wbicb is entered in detail n, .be collect on 
 book, is entered in n .mBle Uunp in tbe casb book .o .be cred,. of . 
 
 Ins.almcnt Ledger. 
 
 Tbe cash payments which are made across the eounte, in .be 
 office by c„sto,ners who call for ,be purpose are similarly entered 
 upon .be pav cards, or in a special office collec.ion book, .f that 
 plan be followed, and in ....„ are bkewise entered in gross upon 
 . .be casb book. Tbe pay carus, or collection books, therefore con- 
 tain all tlu details of paymen.. These cards or books, wbv.bever 
 plan is employed, are in form .o be used as the P"^""^ ^ '-' " 
 the individual accounts in .he Instalment Ledger. To tins end 
 .hey are firs, sorted up in proper order so as to facib.ate .he work. 
 Thev are .hereby ei.her arranged in .he order of .he sales, or lease 
 numbers which .bey bear, or according .o the nurnbers of the ac- 
 counts in the ledger, whichever plan best smts the order o the 
 ledgers, and in a way to make necessary as li..le turmng from fron. 
 to back of ledger as possible. Where the accoun.s are so numer- 
 ous as to employ several ledgers .be books or cards are of cours 
 firs, arranged according to .he individual volumes, and .hen each 
 lot is sorted according .o .be arrangemen. of accounts m the book. 
 Tbe entries in .he cash book made from .he collectors re- 
 por.s, as previously described, de.ermine tbe aggrega.e of .be 
 amoun. tba. is .obe pos.ed ,o tbe credi. of the indmdua accounts 
 in .be ledger. Tbe amounts en.ered in .he cash book, bemg ex- 
 tended to tbe credit of the pair of columns devoted to Instalment 
 Ledger, determine the amount that will post to the cred.t of In- 
 stalment Ledger Account in .he Priva.e Ledger. Lis necessary, 
 therefore, to know that tbe postings to the individual accoun.s .n 
 
 I 
 
 Ji;«a»»»*^«*****^^*'^^''"" 
 
!ecl. 
 
 ;ted by each 
 received, or 
 total as in- 
 le collection 
 the credit of 
 
 )unter in the 
 larly entered 
 book, if thnt 
 1 gross upon 
 lerefore, con- 
 es, whichever 
 ig medium to 
 To this end 
 ate the work, 
 sales, or lease 
 )ers of the ac- 
 ; order of the 
 ing from front 
 are so numer- 
 are, of course, 
 and then each 
 its in the book, 
 collectors' re- 
 jregate of the 
 ddual accounts 
 ook, being ex- 
 l to Instalment 
 ne credit of In- 
 It is necessary, 
 iual accounts in 
 
 ■ !fS'-'.'i*S>M-'.W."" 
 
..^... 
 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 1.0 
 
 U 
 
 Ui, 1^ |2.2 
 
 ^ 1^ 
 
 2.0 
 
 L25 iU 11.6 
 
 «' 
 
 V] 
 
 r 
 
 
 c 
 
 / 
 
 
 / 
 
 L 
 
 Photographic 
 
 Sciences 
 
 Corporation 
 
 23 WIST MAIN STREET 
 
 WEBSTER, N.Y. MSSO 
 
 (716)873-4503 
 
 
 «— I 
 
 MMMMNHH 
 
 ilii 
 
 ■m 
 
CIHM/ICMH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques 
 
ACCOUNTING SYSTEM 
 
 the Instalment Ledger aggregate a corresponding amount. 
 
 This posting to the Instahnent Ledger may be done m the 
 ordinary manner, and for proof called back after the plan pursued 
 in many mercantile establishments, or it may be proven by the re- 
 verse posting method affected by some bookkeepers, but a far bet- 
 ter plan and one that has proven very advantageous wherever em- 
 ployed brings into requisition an adding machine such as the 
 Comptometer, which is illustrated on this page, and saves the need 
 of proof posting in all cases except where errors actually occur. 
 With the cards or collection books properly assorted, and as- 
 
 GENERAL View of the Comptometer. Made by the Felt and Tarrant Mfq. Co., 
 
 Chicago, III. 
 
 suming that two clerks can be devoted to the work, one stands be- 
 fore the ledger at the desk, and the other, standing or sitting near 
 by, handles the cards and at the same time operates the Compto- 
 meter. The ledger number of the first card is called and the clerk 
 in front of the ledger turns to the required page and calls back the 
 name of the customer, thereby indicating that the right account 
 has been found. The first clerk then calls the amount of the credit, 
 which for the sake of illustration we will say in this case is 50 cents. 
 
 >' 
 
 ^^^^^S^ ji^«i,*jSpii4**i 
 
w 
 
 226 
 
 THE SELF-PROVING 
 
 
 As this amount fifty is spoken the fingers automatically record 
 50 cents on the Comptometer. At the same time the item is 
 checked on the pay card or in the collection book, thereby record- 
 ing the fact that it has been posted in the ledger. 
 
 While this has been in progress the ledger clerk has made the 
 proper entry in the account of the customer, has brought the blot- 
 ting pad over the ink and is ready for the next account, which is 
 handled in the same way. The number is called to be used in find- 
 ing the account, and the name of the customer is called back; then 
 the first clerk names the amount of the credit while recording the 
 same on the Comptometer. Then he checks the pay card or in the 
 collection book. The ledger clerk posts the amount that has been 
 called and is ready for the next operation. 
 
 The work proceeds in this manner with probably three to five 
 times the speed that is attained by the ordinary bookkeeper in 
 posting from journal or cash book to ledger in the usual manner, 
 while the Comptometer keeps tab on the accuracy of the work. 
 The amounts handled are thus faithfully recorded by the machine, 
 which, being a total adder, shows at the completion of the work 
 the amount which has been posted, and which, if all is correct, 
 agrees with the total previously determined in the cash book. 
 
 In this manner hundreds and even thousands of accounts are 
 posted by two clerks operating together in the early hours of the 
 forenoon of the day following the day of collection. The labor on 
 each account is so slight and can be performed so expeditiously 
 that there is no excuse for the books being unposted later than 
 noon, no matter how numerous the collections of the previous day 
 have been. The work is so simple in character that under the 
 charge of a general bookkeeper the posting may be performed in a 
 dozen ledgers, if so many are required, by clerks who have no claim 
 to the title of bookkeeper in themselves, and yet correctly, done in 
 all particulars. Any young man or young woman of average in- 
 
 1^ 
 
ACCOUNTING SYSTEM 
 
 227 
 
 :ally record 
 the item is 
 eby record- 
 as made the 
 ;ht the blot- 
 nt, which is 
 used in find- 
 i back; then 
 jcording the 
 ard or in the 
 liat has been 
 
 three to five 
 okkeeper in 
 ;ual manner, 
 of the work, 
 the machine, 
 of the work 
 11 is correct, 
 5h book, 
 accounts are 
 hour? of the 
 The labor on 
 expeditiously 
 ed later than 
 previous day 
 at under the 
 erformed in a 
 have no claim 
 -ectly done in 
 )f average in- 
 
 telligence, writing a decent business hand and giving careful 
 thought to the work, is entirely competent. The cost, therefore, 
 is measured largely by the grade of help necessary. 
 
 Referring again to the sorting of the cards with respect to 
 lease numbers or ledger numbers in the several volumes in which 
 the ledger may be divided, it should be remarked that such prelim- 
 
 FOOTINQ THE LEDGER BY USE OF THE COMPTOMETER 
 
 inary work is not absolutely necessary. Many bookkeepers prefer 
 it because it enables thfem to handle the leaves of the ledger in reg- 
 ular course, and thereby avoids turning from front to back and 
 back to front, which is always more or less confusing to the ledger 
 keeper, and which also produces a certain amount of wear upon the 
 ledger itself. Each individual office will establish its own routine 
 in matters of this kind, to be largely determined by the preference 
 of the head bookkeeper or manager in charge. It should also be 
 remarked that it is not absolutely necessary that the ledger keep- 
 ers should work in teams as above suggested. All the work may 
 be done by one clerk if required, who would check the pay cards or 
 collection books and keep tab of the amounts on the Comptometer 
 
 i 
 
 I 
 
 ..j ll giilM l i fi iir iirtilrfrT I T m r WTf^ ' 
 
 -1^ ^ liiMfillHI 
 
228 
 
 THE SELF-PROVING 
 
 at the same time. The Comptometer as an aid in posting is an as- 
 sistant which every bookkeeper greatly appreciates after once be- 
 coming famiUar with it. 
 
ig IS an as- 
 ;r once be- 
 
 COLLECTION DEPARTMENT 
 
 The proper conduct of an instalment business demands a 
 collection department, properly organized and thoroughly ad- 
 ministered. In a small business this work will be done under 
 the immediate eye of the proprietor, who, no doubt, will act 
 likewise in the capacity of credit man. In a large establishment, 
 on the other hand, business routine, of necessity, will take the 
 place of personal supervision of the merchant. 
 
 Whether elaborately planned, as for a large business, or. re- 
 stricted to the work of the proprietor, assisted ly his salesmen 
 and regular office force, the collection department subdivides into 
 two grand divisions. There is first the office work, which in- 
 cludes the proper conduct of the books, the periodical supervision 
 of the accounts, the preparation of route lists for collectors, the 
 receipt of moneys paid by customers at the office, the necessary 
 correspondence with customers and attention to delinquents and 
 to all cases that require recourse to legal measures or that are in 
 any respect irregular. 
 
 The other grand division includes everything outside of the 
 office, and in some cases is subdivided into two fields or classes. 
 The first includes the customers who are located close to each 
 other and within a short radius of the store, and the second the 
 customers situated at a considerable distance from the store, and 
 who are more scattered and further apart. Whether the outside 
 work be regarded as a unit or subdivided into parts, as mentioned 
 
 !■• 
 
THE SBI-F-rnOVIN'O 
 
 above, the work to be done and the supervision to be exercised is 
 
 essentially the same. 
 
 Customers whose purchases were made upon the agreement 
 to pay the collectors at stated intervals must be promptly waited 
 upon at the agreed dates wherever located. Any lack of prompt- 
 ness in this regard by the establishment is a notice to the customer 
 of laxity, of which he is prone to take immediate advantage. If 
 the house is not prompt in demanding what is its proper due, 
 then the customer, in a sense, feels released from his obligation of 
 
 promptness. 
 
 While it is to the interest of the merchant, as is elsewhere set 
 forth in this volume, to be extremely considerate of his customers' 
 interests and to be lenient with them in times of disaster and dis- 
 tress, and in all respects to show the most friendly feeling to those 
 who are indebted to him, still business is business, and a friendly 
 or benevolent feeling should never be allowed to descend to care- 
 less administration. Customers should be visited regularly by 
 collectors, whether payments are made or not, for the very good 
 reason that it is essential to the merchant to know at all times of 
 the whereabouts of the goods which are the security for his 
 claim, and also the general condition of his customer with refer- 
 ence to his paying abiUty. 
 
 Not a little of the success of the collection department de- 
 pends upon the character and qualifications of the men who are 
 employed as collectors. Some men are born collectors. Other 
 men, with most excellent qualifications in other directions, are 
 utterly unable to collect money, either for themselves or their em- 
 ployers. Some men have special aptitude for work of this kind, 
 and are able to detect instantly the difference between a trumped- 
 up excuse for a failure to pay and an honest statement of real dis- 
 tress. Such men are also able to press a claim without giving of- 
 fence. Other men, on the contrary, are so bunglesome in their 
 
Mlili 
 
 
 ACCOUNTING SYSTEM 
 
 lercised is 
 
 jgreement 
 
 ly waited 
 
 If prompt- 
 
 custonier 
 
 itage. If 
 
 loper due, 
 
 igation of 
 
 ;\vhere set 
 
 ustomers' 
 
 r and dis- 
 
 g to those 
 
 a friendly 
 
 id to care- 
 
 ^ularly by 
 
 very good 
 
 ill times of 
 
 ty for his 
 
 with refer- 
 
 •tment de- 
 n who are 
 ■s. Other 
 :tions, are 
 r their em- 
 this kind, 
 I trumped- 
 of real dis- 
 giving of- 
 le in their 
 
 methods as to leave a bad impression wherever they go, and to do 
 the house an injury in reputation even with customers who have 
 the money ready to pay the instant the collector calls. 
 
 Too great care, therefore, cannot be taken in the selection of 
 the collectors of the establishment. The same considerations 
 prevail to a certain extent in the selection of the receiving clerk of 
 the establishment — the one who meets the customers who call to 
 pay their weekly or monthly instalments. Courtesy in both cases 
 is a prime requisite. No customer of the establishment should 
 ever be spoken to by proprietor, collector or receiving clerk with- 
 out the impression being left in his mind that he is dealing with 
 gentlemen who are considerate and kind in the extreme. Uni- 
 form and intelligent courtesy, will facilitate collections, while 
 grufif and thoughtless treatment will drive customers away. 
 
 Addressing credit merchants of both large and small opera- 
 tions, as is the province of this book, all remarks with respect to 
 the collection department must, of necessity, be presented in the 
 most general terms. The ideal collection department for a busi- 
 ness of given size would be too large or too small for an enter- 
 prise of some other m; gnitude, and therefore all directions must 
 be restricted to advice on leading points, leaving to the indi- 
 vidual merchant the task of adapting to his special requirements 
 such portions as meet his particular needs. 
 
 Of the inside or . iiice work to be done in the immediate in- 
 terest of the collection < epartment, the periodical examination of 
 the lease accounts, or instalment accounts, as they are very com- 
 monly termed, is one of the most important duties. If the busi- 
 ness is large enough to warrant it, this work should be the special 
 duty of one man, under the general direction of the manager. 
 His duty would be to watch customers' accounts in a way to check 
 the work of the collectors, and to be in position to lay out their 
 work and establish their routes from time to time. Supervision 
 
 n 
 
 •^m» 
 
 - ^^ 
 
 JJ 
 
232 
 
 THE SET-I'-rUOVIXQ 
 
 of customers' accounts, in the sense in which the term is em- 
 ployed, means entire familiarity with the ledger, going over it 
 from time to time in a way to notice whether or not payments 
 are being made with proper regularity. It also includes the v.ork 
 of examining collectors' reports from day to day, in order to keep 
 constantly in touch with the paying condition of each individual 
 customer. 
 
 By this work not only does the person who supervises the , 
 accounts learn to judge of a customer, but he also learns to judge 
 of the success of a collector, as well also of the collector's reliabil- 
 ity. Dishonest men are sometimes found among collectors, as 
 well as elsewhere. Carelessness very frequently precedes dishon- 
 esty. In fact, it is the general rule, save only in cases where the 
 collector is already a hardened offender. All that has beeen said 
 with respect to holding the customer closely to the terms of pay- 
 ment originally agreed to applies with double force to the man- 
 agement of the collectors. Not only should the collectors be 
 held to the work of visiting the customers on their respective 
 lists at the proper date, but their reports to the effect that they 
 have so visited these customers should be regularly inspected, 
 and from time to time should be verified by the plan of quiet in- 
 quiries in their respective fields— in other words, by a little pri- 
 vate detective work, entirely justifiable in view of the fact that 
 carelessness is so easy, and that when carelessness is indulged in it 
 soon leads to still more reprehensible practices. Again, the re- 
 ports of collectors very frequently contain items of information 
 which suggest the necessity of instant action upon the part of 
 the house to secure its claim. Unless the collectors' reports are 
 closely and promptly scrutinized and the results of their work 
 properiy tabulated in a way to reach the legal department of the 
 establishment without delay many an opportunity to prevent a 
 loss is frittered away. 
 
ACCOUNTING SYSTEM 
 
 233 
 
 11 IS em- 
 over it 
 
 )ayments 
 
 the v.ork 
 to keep 
 
 ndividual 
 
 •vises the 
 to judge 
 s reliabil- 
 ectors, as 
 :s dishon- 
 ,vhere the 
 )eeen said 
 ns of pay- 
 the man- 
 ectors be 
 respective 
 that they 
 inspected, 
 f quiet in- 
 little pri- 
 fact that 
 Lilged in it 
 n, the re- 
 formation 
 le part of 
 eports are 
 heir work 
 ent of the 
 prevent a 
 
 An important part of the office work in connection with the 
 collection department, and which should come under the general 
 supervision of the manager of the collection department, is the 
 checking of the ledger in conjunction with the customers' Pay 
 Cards. The Pay Cards, which form the subject of a sjjecial chap- 
 ter in this book, must be kept up to date and must have upon 
 them every entry that is contained in the ledger. They must also 
 be always available for the use of the collector. The collector, 
 having with him when he calls upon a customer the Pay Card 
 that is a duplicate of the one which was in the first instance de- 
 livered to the customer, and which also is a duplicate of the ledger 
 account, is supported in his collection work by a full statement 
 of the business that has been done to date. He is therefore in 
 position to answer any proper questions about the account and 
 to satisfactorily adjust any misunderstanding that may have 
 arisen. 
 
 It is an easier matter for the manager to supervise the collec- 
 tion department by sorting over the Pay Cards and using them 
 as a basis of his conversation with collectors and any inquiries 
 that may be necessary to make, than attempting to go through 
 the ledgers. At the s^me time the ledger keepers, by familiarity 
 with the accounts and noticing how balances are being carried 
 forward from time to time without reduction, are in position to 
 call the manager's attention to all flagrant delinquencies. By 
 the reports of collectors, in the first place, and by the reporl^s of 
 the ledger keepers, in the second place, with the two supple- 
 mented by personal examination of the accounts in the conven- 
 ient form afforded by the Pay Cards, the manager can keep posted 
 on a very large number of accounts with far less labor than would 
 be required upon any other plan. 
 
 The daily routine to be followed by collectors is something 
 to which great care should be given on the part of the managing 
 
r 
 
 234 
 
 THE SET.F-rnOVlNO 
 
 man. No two collectors left to their own resources will manage 
 the same way, so far as making their returns is concerned, nor in 
 reporting the items of information regarding which the merchant 
 depends so much tipon them. Good management, therefore, 
 requires that a definite plan or method be outlined, to which all 
 the collectors of the establishment are held, first for the sake of 
 good discipline among the collectors themselves and the proper 
 tabulation of results, and second, and more particularly, for the 
 benefit that system has upon the routine work of the office. 
 
 If any argument were needed in support of the proposition 
 that it is essential for the manager of the collection department to 
 keep everything up to date, and that he should always conduct 
 his affairs in a forehanded manner, it is afforded by what occurs 
 when, through careless system or negligence, a collector calls 
 upon a customer the next day after a payment has been made at 
 the office. Such an occurrence is very annoying, and, in many 
 cases, the customer sees therein the opportunity, ill naturedly, of 
 course, to reflect upon the business system of the estabhshment, 
 if not upon its integrity. All this follows simply because a sUp 
 
 has occurred. 
 
 Such an event as a collector calling for an amount after it has 
 been paid may proceed from either of two sets of circumstances. 
 In the first place, a customer's account may be past due, and the 
 manager in charge of the lease accounts, noticing that the pay- 
 ment is in arrears, may make a speaal point of putting this cus- 
 tomer's card on the collector's list for special work the next day. 
 .Route lists, of necessity, are made out a day, or at least a few 
 hours, in advance of their use, and, as it sometimes happens, the 
 customer comes in with the payment just after the collector de- 
 parted with orders to make a call upon him. Again, it is possible 
 for a customer to anticipate his payments by one or two days. 
 In such instances, if the customer's card is not at once withdrawn 
 
ACCOUNTING SYSTEM 
 
 280 
 
 AW manage 
 ned, nor in 
 e merchant 
 , therefore, 
 o which all 
 the sake of 
 the proper 
 irly, for the 
 ffice. 
 
 proposition 
 partment to 
 ays conduct 
 what occurs 
 Hector calls 
 een made at 
 nd, in many 
 laturedly, of 
 tablishment, 
 ;cause a slip 
 
 from the route list, in case it has been there entered, or if the pay- 
 ment is not at once entered on the cards, in case the card is m the 
 daily or weekly case, there will be the same annoyance. 
 
 The remedy, as already indicated, is to have the work well in 
 hand and to make instant changes in collectors' route lists when- 
 ever payments are received. In turn, if the customer calls after a 
 collector has gone out with the card, it is necessary, in order to 
 avoid misunderstanding, to inform him that the collector is al- 
 ready en route to his place, and thereby forestall the rij^hteous in- 
 dignation that otherwise he might feel called upon to express. 
 The rule should be rigidly enforced in the office that daily, before 
 the bookkeepers close their work, every card representing an 
 account on which a payment has been received during the day 
 shall be properly posted, thus preventing the chances of accident 
 of the kind above referred to. 
 
 t after it has 
 rcumstances. 
 due, and the 
 hat the pay- 
 ing this cus- 
 he next day. 
 t least a few 
 happens, the 
 collector de- 
 , it is possible 
 or two days, 
 ce withdrawn 
 
■jjiiiiifii»"y^.''t'<^'jffly!<^' 
 
 A COLLECTOR'S ROUTINE 
 
 The pay cards, which form the basis of the collector's work, 
 are k.pt sorted with respect to routes of collectors, and also with, 
 respect to dates. When a collector has had delivered to him 
 the pay cards representing his work for the day, he first arranges 
 his route list by a proper sorting of the cards. As he meets each 
 of the different customers he records upon the proper pay card 
 the amount collected, and also enters upon the customer's dupli- 
 cate the same amount, in each case adding his name or initials. 
 Where the customer fails to pay or is absent, and where there is 
 any other fact encountered which should be reported to the office, 
 he records the same in the column of the pay card called "Col- 
 lector's Report" by means of the code number or letter. Thus 
 a collector's pay cards collectively become a complete report of 
 
 his daily work 
 
 Reporting to the office at the dose of the day, the collector 
 summarizes the results of his work by entering upon a collection 
 book, which may be characterized as an auxiliary cash receipt 
 book, the names of the customers who have paid, at the same 
 time turning over to the cashier his pay cards and the money that 
 he has collected. The pay cards, as elsewhere described, next be- 
 come the posting medium to the Instalment Ledger, while the 
 amount of cash turned in is entered in lump in the cash book, 
 with the amount properly extended in the columns to the credit 
 of Instalment Ledger. The collector's work for a day ended in 
 this way, he is ready to receive the cards for another day's effort, 
 and so the routine continues. 
 
or's work, 
 I also with, 
 ed to him 
 it arranges 
 Tieets each 
 r pay card 
 ler's dupli- 
 or initials. 
 ;re there is 
 ) the office, 
 ailed "Col- 
 :ter. Thus 
 e report of 
 
 tie collector 
 a collection 
 :ash receipt 
 it the same 
 money that 
 ed, next be- 
 r, while the 
 : cash book, 
 o the credit 
 lay ended in 
 day's effort, 
 
 ACCOUNTING SYSTEM 
 
 In many establishments customers' cards, kept assorted in 
 cabinets, as elsewhere illustrated in this volume, are always within 
 reach of the collectors and office employes. The collectors in 
 such cases are required to take from the cabinets, day by day, 
 those cards which represent the routes or districts specially as- 
 signed to them. The cards are returned to the cabinets by the 
 ledger keepers after the posting, as elsewhere described. 
 
 Whether a collector is regularly to call upon a customer or 
 the customer is to make payments at the store is a fact very gen- 
 erally determined by conference with the customer at the time 
 the sale is made, or subsequently, as the case may be. A collector, 
 when he learns that he is to regularly look after a given account, 
 always has the opportunity of making himself agreeable to the 
 customer and learning through conversation just what hour of a 
 certain day in the week it is most agreeable to have him call for 
 the money. A good collector is always sure to be on hand at, the 
 appointed place at as near the stroke of the clock as possible. 
 Promptness of this kind is conducive to regular payments upon 
 the part of the customer. Collectors have the opportunity of 
 regulating their engagements so accurately, by intelligently ad- 
 justing the wishes of one person with those of others, and from 
 time to time indicating their own convenience, in a way to brmg 
 nearby places close together in point of time, that they can ar- 
 range to call upon their customers week after week without the 
 danger of so much of a variation as fifteen minutes from any fixed 
 
 hour. ^ , , , . „ 
 
 \mong the duties with which collectors should be specially 
 
 charged is that of promptly and accurately reporting removals of 
 customers from one place to another. Where the collector en- 
 counters a change of address he should record the same upori 
 the pay card by drawing his pencil through the old address and 
 writing tha new in its place. On his return to the office he 
 
238 
 
 THE SELF-PROVING 
 
 should enter a change of address in the proper place in the Change 
 of Address Book, and at the same time should place his initials in 
 the column referring to customers' cards, thereby indicating that 
 the change has been posted to the customer's card. The interests 
 of the office will also be served if he changes the address on the 
 customer's dupUcate, because in frequent instances the custom- 
 er's pay card is brought to the office with a payment, and the 
 change of address thus noted on the face facilitates the necessary 
 office references. 
 
 i^- 
 
he Change 
 s initials in 
 :ating that 
 le interests 
 ress on the 
 he custom- 
 lit, and the 
 e necessary 
 
 CANCELLED SALES 
 
 In an instalment or credit business it occasionally occurs that 
 sales are cancelled after they have gone so far as to be entered in 
 the books and a cash payment made. The bookkeeper or busi- 
 ness man then has presented the question of how to dispose of this 
 
 entry. 
 
 So far as the goods are concerned they must be restored to 
 stock that is charged to Buying Account at cost prices. So far 
 as Selling Account is concerned, it must be charged with the 
 goods at the price at which they were sold. Proper reverse entry 
 must also be made between Buying and Selling Accounts. So far 
 as the customer is concerned, he must be credited with the amount 
 for which he has been debited. In turn, he must be charged with 
 the cash that is refunded to him. 
 
 The best plan, therefore, is to treat the goods the same as 
 goods returned, elsewhere described in this book, with the proper 
 credit posted to the customer's account, as described above, 
 whether in the Instalment Ledger or among Sundry Debtors. 
 For the cash refunded a proper voucher should be made and duly 
 numbered. In due course the amount thus paid out will be posted 
 to the debit of the customer's account, with proper notation of 
 the voucher number, thus closing the account. 
 
 The rule to be observed in the cases of cancelled sales, more 
 briefly expressed, is to reverse what was done when the goods 
 were charged. This applies as well to the cross entry between 
 Buying and Selling Accounts as to other matters. 
 
 ^-■«^;<fl;^^i(MMnMMinKiMH 
 
 MMKKJiHiJgWtfliMifliitfif'**"" 
 
LT" 
 
 » in i "iT.'~ 
 
 MERCHANDISE RETURNED 
 
 In other parts of this volume we have shown the necessity of 
 properlv recording goods coming into the establishment that are 
 bought' from manufacturers or dealers to sell again, and also we 
 have dwelt upon the necessity of recording prices so that as the 
 goods are sold the difference between cost price and selling price 
 may be noted in a way to form the basis of the cross entry between 
 Buying Account and Selling Account. If care is so necessary m 
 these details with respect to the goods that are regularly bought 
 and sold, then care should also be taken in the matter of takmg 
 back goods that have once been sent out, that the necessary en- 
 tries may be properly made. As a rule, merchants are careless m 
 this regard, but carelessness here would disarrange the general 
 system in a way to cause confusion where otherwise only orderly 
 methods prevail, and to defeat the end in view. 
 
 Goods that have once been sent out can come back for either 
 of two general causes. The goods may have been sent out simply 
 on approval and charged to the customer, or they may have been 
 charged to the customer, supposing that he would retam them, 
 and afterward he expresses the desire to exchange them for some- 
 thing else. These two cases are practically the same, and all 
 goods so coming back are, of course, to be credited to the cus- 
 tomer at the price at which they were charged to him, and are to 
 be taken back into stock with Buying Account debited' at their 
 original cost. 
 
ACCOUNTING SYSTEM 
 
 i;41 
 
 necessity of 
 ent that are 
 and also we 
 
 that as the 
 selUng price 
 itry between 
 necessary in 
 larly bought 
 er of taking 
 lecessary en- 
 re careless in 
 
 the general 
 only orderly 
 
 ick for either 
 nt out simply 
 lay have been 
 retain them, 
 lem for some- 
 same, and all 
 :d to the cus- 
 im, and are to 
 bitcdat their 
 
 ?: 
 Oote- 
 
 urvcF RETURNED. "'-'89 
 
 J. F. BROWN &. CO'Y 
 
 a.«-T auitH •T«trf f »« 
 TORONTO,. 
 
 .ia»_ 
 
 CMtomrf'* 
 
 mrf* 
 
 .r th. flo«tf* d.MriM b.law. ThM. fle«dt .r. to b. put In- 
 
 th«r Inttnietlens:- 
 SarMr 
 
 RM«I««4 onl, th. loed. that •f ehwto- •«- l-ltl"!^- 
 
 Oriqinal-Truckman'8 or 
 
 CARTER'S DlRECTION8,-{EXAMINE SUCCESSIVE PAQES) 
 
(1 
 
 ■HMMWiMM*' 
 
 ftitt' 
 
 THE SELF-rROVIN'G 
 
 The other case is where the customer fails to keep up his 
 payments and the goods are either voluntarily surrendered by 
 him in satisfaction of the account or are forcibly seized by tne 
 dealer In either of these latter cases the price at which the cus- 
 tomer's account is to be credited is one thing, and the price at 
 which the goods are to be taken back into stock is altogether 
 another The price to be credited to the customer's account 
 would be determined in the one instance by negotiation, and in- 
 the other by the amount in the account remaining unpaid. In 
 neither instance have these figures any particular relationship to 
 the real value of the goods. In some sections of the country 
 where goods are seized a formal appraisement is necessary in 
 order to determine the amount of the credit to the customer's 
 account. In some instances it is necessary that the goods should 
 be sold for the customer's account, in which instance the instal- 
 ment dealer may or may not be the purchaser. 
 
 So much with reference to the general conditions that pre- 
 vail and which are stated here in order to introduce to the reader's 
 attention a proper form of procedure in such cases. The truck- 
 man or carter who is sent after the goods should have definite in- 
 structions where to go and what to do, whether they are goods 
 returned by customers for exchange, or other good reasons, as 
 mentioned above, or goods that have been used which are to be 
 credited to the customer's account at prices to be subsequently 
 determined. He should be fully informed as to what articles he 
 is to obtain. In all probability his instructions will be to deliver 
 the goods to the warehouse. Then the warehouse keeper, in 
 turn, should have similar information relating to the disposal of 
 the goods that are put in his charge. He requires to know also 
 where they come from and the name of the customer. It. is also 
 necessary to have proper records in the office of the transaction. 
 One general form and a single writing can be made to answer 
 
 — ■ - - j!Uai ' '<Wft!U.AW -iJ lNlM8Pf '' ' ^B 
 
 life" 
 
ACCOUNTING SYSTEM 
 
 ;ep up his 
 ndered by 
 ;ed by the 
 :h the cus- 
 le price at 
 altogether 
 's account 
 ion, and in- 
 npaid. In 
 tionship to 
 he country 
 ecessary in 
 customer's 
 )ods should 
 : the instal- 
 ls that pre- 
 the reader's 
 The truck- 
 : definite in- 
 y are goods 
 reasons, as 
 :h are to be 
 ubsequently 
 t articles he 
 )e to deliver 
 e keeper, in 
 e disposal of 
 o know also 
 r. It, is also 
 ■ansaction. 
 de to answer 
 
 fflncF RF-TURNED. '—^^ 
 
 J. F. BROWN & CO'Y 
 
 ••■•T Qum •»•!«» i**^ 
 TOHONTO,. 
 
 .18»_ 
 
 Goto- 
 
 
 ^r th. .-d. d.«rtb.d b.l.w. Th... good. .r. ^'^^^^ 
 Othar Imtnietlen*: 
 
 CarUr 
 
 Fl.«.l«.d on., th. g..d. th.t .r. eh..l..d .nd l«Ul.l.d 
 
 WaMHwMniar 
 
 First Carbon Copy-Warehouseman'8 Receipt 
 
244 THE SELF-PROVING 
 
 the purpose by the use of carbon sheets, especially if the several 
 copies be varied in the color of the paper upon which they are 
 printed, in order to distinguish them apart, and also in the ruhngs 
 and printed headings enough to adapt them to the different uses. 
 Fomis for this purpose that are in satisfactory use m a lead- 
 ing instalment house are submitted in this connection, and are 
 arranged on successive pages in the way in which the different 
 sheets would appear when prepared by the carbon process above 
 mentioned. The printing on the first and second, it will be 
 noticed, is the same, and is in the form of instructions to the 
 truckman or carter, while on the third the printing is somewhat 
 varied, being in the form of a receipt. The f^rst is the truckman's 
 directions, the second is the warehouseman's receipt, while the 
 third is the office copy. The latter is essentially the inventory of 
 the goods coming back into the establishment, and is to be 
 treated accordingly. The prices which are extended upon the 
 warehouse receipt represent the credit to the customer's account, 
 while the prices extended upon the third sheet or office copy rep- 
 resent the charge to Purchases or Buying Account-the figures 
 at which the goods are returned to stock. 
 
 Examination of the form will show that line numbers have 
 been run down the centre of the sheets. This is for the purpose 
 of facilitating the work. Requisitions for goods to be returned, 
 like all others, should be numbered in series, the first set, for 
 example, being No. i, the second No. 2, and so on. Then, by 
 combining the number of the slip with the number of the hne, 
 there is given an indication of goods by which it becomes easy to 
 Identify any article of a given lot. This plan also affords a method 
 of reference for use in tagging the goods and making proper ref- 
 erences in the cost book. It frequently happens that u i& neces- 
 sary to keep a given lot of goods returned in storage for some 
 time before they can be disposed of, either in the sense of return- 
 
 t«r^ 
 
 i*^ 
 
ACCOUNTING SYSTEM 
 
 245 
 
 e several 
 
 they are 
 le rulings 
 rent uses, 
 in a lead- 
 ., and are 
 
 different 
 ess above ' 
 it will be 
 ms to the 
 somewhat 
 ruckman's 
 
 while the 
 ventory of 
 I is to be 
 
 upon the 
 's account, 
 ; copy rep- 
 the figures 
 
 mbers have 
 he purpose 
 le returned, 
 irst set, for 
 Then, by 
 of the Une, 
 mes easy to 
 ds a method 
 f proper ref- 
 t ii is- neces- 
 ge for some 
 se of return- 
 
 jBpec PgTURNED. "-'89 
 
 J. F. BROWN &, CO'Y 
 
 a.f -T OUtt" •T«ttT I««T 
 
 TORONTO,. 
 
 SECOND Carbon 
 
 COPY-OFFICE RECORD OF CHARGE TO BUY.NQ ACCOUNT 
 
— -Wm 
 
 m 
 
 THE SELF-rnOVlNO 
 
 ing to stock or selling. In such cases it is very essential that the 
 goods should be tagged in a way to be identified without possibil- 
 ity of mistake. A convenient plan of tagging, therefore, is to 
 combine the slip number with the number of the line on which 
 the article is recorded. For example, using the forms submitted 
 herewith which represent Requisition No. 189, the tags are 
 written 189-1, 189-2, 189-6, etc., which would mean Lot No. 
 189, article i ; Lot 189, article 2. and Lot 189, article 6, etc. 
 
 Again referring to the blank form, it will be seen that space 
 is provided for entering the customer's ledger number on the 
 copy used as the warehouse receipt, and which contains the credit 
 to the customer's account. On the other hand, on the copy con- 
 stituting the office form, space is provided for entering a number 
 taken from the Goods Bought Record or Purchase Record, thus 
 connecting the form in each case with the accounts to which it 
 refers. The space provided at the bottom of the blank, entitled 
 "Remarks," may be used for the record of any facts which have a 
 bearing upon the transaction, and which are not provided for 
 above. 
 
•mms- 
 
 al that the 
 tt possibil- 
 fore, is to 
 : on which 
 svtbmitted 
 ; tags are 
 1 Lot No. 
 , etc. 
 
 that space 
 ber on the 
 5 the credit 
 ; copy con- 
 r a number 
 ecord, thus 
 to which it 
 [ik, entitled 
 hich have a 
 rovided for 
 
 PRESERVING ORIGINAL PAPERS 
 
 c . ^f thP Self-Proving Accounting System is 
 A leadinc feature of the sen rruvu ^ 
 
 registers of the original <locun,ents. Ihe — ;; ^' ,„ 
 
 as!enained .he wants o. '-'"--"- -'nJ 1°:^; Z sales 
 
 provide (.) the invoice, to be gtven to '■'J';" ;;,;;,,,,„„, ,„ 
 , 1 t^v.P retained in the office, and U) tne uiic^ 
 
 book record, '» « 'J ^^ ,,, .^ „„e writing, by .i,e use 
 
 rr rtrir:;. In^nrntbe«s.et.^^^^^^^^^ 
 
 body the directions to the carter or memoran- 
 
 , A t^KPiicniedbv the customer, and (,2) ameniuia 
 
 for the goods, to be signea uy i»"^ 
 dum o. fhe deUvery. to be retained by the customer, aiso ali by one 
 
 "'"to nrake a single writing answer for several purposes is only 
 the best modern business practice intelUgently apphed, but to 
 '^le L same entirely satislactory lor use "^---^ " 
 assortment of blanks and proper apphances '» P^""^ 
 forms and keeping them after they have been «"»;!-■" ^^ 
 other place we have described order sheets and mvotces, and m st,U 
 alother place we have similarly discussed the forms useful m the 
 deUvery department. In all these cases there ^'^^'^^^UZl 
 blanks and conveniences for handUng the same. To the latter we 
 now direct attention. 
 
248 
 
 THE SELr-PROVINO 
 
 There arc a consi(leral)le ininiher of clips, order holders, post 
 binders and transfer cases in the market, which answer a very sat- 
 isfactory purpose, and therefore we luwe nothing original to pre- 
 sent in this regard. Our illustrations are chosen from regular 
 
 IN8ERT1NQ A SALES SHEET, WITH ITS DUPLICATES AND CARBONS IN A HOLDER. 
 
 catalogue goods, and are introduced in this place simply for the 
 purpose of better explaining methods. 
 
 When an order or invoice is to be entered, or any other docu- 
 ment is to be filled out, of which one or more carbon copies are 
 required, there is need of a holder to keep the several sheets in cor- 
 
 The Holder Closed. 
 
 rect position. A device adapted for this use is shown in two posi- 
 tions in the first and second of the accompanying engravings. 
 The first shows it open, with the order sheet and its complement 
 
ACCOUNTING SYBTEM 
 
 240 
 
 „, carbon, :.nd duHica." LcinR i"»cr.c,:. an.Uhc seen,, I shm s ^ = 
 h„Mer c.o,ea, »» i. woul.1 appear lyin^ on a .1«1<. The bolder h re 
 shown n«y be <le«ribed as a pair cl boards joined together at the 
 
 A Locked Post Binder, partly filled. 
 
 back by a strong clamp, the whole being properly finished to se- 
 cure durabiUty and neat appearance. The device is so constructed 
 that it will hold firmly any number of sheets up to one hundred. 
 
 A Transfer Binder, partly filled 
 
 It is quickly opened for putting in or taking out the sheets, and is 
 iust as quickly closed after the sheets are inserted. 
 
 For filing the invoices and other similar papers after they have 
 been properly filled there is required some device adapted to re- 
 
250 
 
 THE SELF-PROVING 
 
 ceive the sheets one by one as they are ready and to hold in perma- 
 nent place all that are put in and to present the entire lot in a form 
 equivalent to a book. For purposes of ti is kind there is nothing 
 available at present that is better than a pest binder, one style of 
 which is illustrated in .he third of the accon panying engravings. 
 A post binder consists of a pair of board backi, each furnished with 
 a hinge near one edge. In the hinged portior of one of these backs 
 two rods are firmly secured in place, while through the hinged por- 
 tion of the other holes are punched which permit the cover to slip 
 down over the rods. A locking or clamping device is provided 
 adapted to fasten the second cover down tight against whatever 
 
 A Locked Post Binder, filled and opened near the middle 
 
 number of sheets have been put in place between the two covers. 
 Accordingly, the device is expansible to the limit of the length of 
 the posts. The several sheets to be contained in the binder are 
 perforated in a way to correspond with the posts over which they 
 are placed. When the binder is closed by clamping down the sec- 
 ond cover, as mentioned, the contained sheets are held in position 
 as shown in the cut. To illustrate the kind of a book that results 
 from the use of such a binder we introduce the fifth cut in this 
 series, which shows a binder filled and opened near the middle, as 
 would be required in a case of reference. 
 
 IMP 
 
1 in perma- 
 t in a form 
 is nothing 
 ne style of 
 ingravings. 
 lished with 
 hese backs 
 linged por- 
 Dver to slip 
 s provided 
 t whatever 
 
 LE 
 
 ACCOUNTING SYSTEM 
 
 251 
 
 Books of loose sheets made up in this manner are much to 
 be preferred over the old style bound book. The books so con- 
 structed may be kept without change, or, by way of econgmy, 
 after the binder is filled, the sheets composing the book may be 
 transferred to a cheaper device for permanent preservation, one 
 style of which is shown in the fourth illustration. This transfer 
 binder consists of a pair of stout covers, with threaded metal rods 
 and thumb screws for closing down the cover. 
 
 There are several varieties of arch files in the market which 
 are adapted to hold temporarily papers like invoices, memoran- 
 dums, records of measurements, &c. They work upon much the 
 same plan as the post binder here illustrated, using sheets 
 punched to correspond with the wires. They have the special 
 advantage over the post binder of permitting the ready removal 
 of any paper without disturbing the others. Such devices are 
 useful auxilaries in an office and are practicalh- indispensable 
 wherever a complete and adequate system is to be maintained. 
 From time to time the arch file is emptied and its contents re- 
 moved to a transfer binder of suitable construction for perma- 
 nent preservation. 
 
 two covers. 
 
 le length of 
 binder are 
 
 which they 
 
 wn the see- 
 in position 
 
 that results 
 cut in this 
 
 ; middle, as 
 
/- 
 
 \ 
 
 COMPLAINT AND INFORMATION BOOK. 
 
 In the office of every merchant who conducts business upon 
 the instalment plan, and who accordingly has a special interest in 
 the welfare and standing of his customers, as well as in their good 
 will, there should be maintained what may be described as a Com- 
 plaint and Information Book. This may be an ordinary blank 
 book, without any special ruling. It is to be kept very much as a 
 diary, with dates of entries from time to time. In the event of 
 the entries in the bdok being made by different persons they are 
 to be properly initialled or signed. 
 
 Whenever a customer, either by personal call or through the 
 medium of a letter addressed to the house, or in the form of an 
 oral communication to the collector or to some other employe, 
 makes a complaint, no matter to what it refers, an entry to that 
 effect is to be made in this book. In turn, any information that 
 relates to a customer, or that bears upon any fact whatsoever in 
 connection with the business, that comes to the knowledge of an 
 employe of the concern, is likewise to be duly recorded in this book. 
 The book thus conducted becomes the repository of a vast fund 
 of information of the greatest importr.nce to the business, and 
 therefore is to be systematically and periodically inspected by the 
 proprietor or managing man, in order to see, first, what the drift of 
 the complaints are, with a view to correcting whatever is wrong in 
 the management or administration of the establishment, and, 
 second, to see that every reasonable demand has been promptly 
 attended to. Efficient work in this regard both makes and keeps 
 
 iB >"»°"' 
 
ACCOUNTING SYSTEM 
 
 253 
 
 !OOK. 
 
 usiness upon 
 3.1 interest in 
 in their good 
 ed as a Com- 
 dinary blank 
 ;ry much as a 
 the event of 
 sons they are 
 
 • through the 
 le form of an 
 her employe, 
 entry to that 
 irmation that 
 vhatsoever in 
 )wledge of an 
 i in this book. 
 >f a vast fund 
 business, and 
 pected by the 
 at the drift of 
 er is wrong in 
 shment, and, 
 een promptly 
 kes and keeps 
 
 friends After a complaint has been investigated, the facts ascer- 
 tained and the matter disposed of. an entry to this effect should 
 be made below or across the complaint over the initials or name of 
 the person who has given it special attention. 
 
 The information that may be recorded in a book of this knid 
 includes the various statements that are made from time to time 
 by customers who call at the ofifice, of reasons for not paymg at a 
 certain date or promises to pay at some future date. Information 
 of this kind should at once be brought to the knowledge of the 
 collectors, so that they may act accordingly. If a systematic 
 record of these statements is kept, with proper memorandums 
 transferred from time to time to the f^le of pay cards, or otherwise 
 brought to the attention of collectors, the effect will be to hold 
 customers to the letter of their promises, thereby greatly facilitat- 
 ing collections. Other items of information to be recorded in- 
 clude all the facts picked up by truckmen and other employe^ con- 
 cerning the customers of the establishment, their removals and 
 their circumstances in general. In short, the Complaint and In- 
 formation Book is a general "blotter," receiving everything that is 
 offered, and from which the different items bearing upon the con- 
 duct of the business .are culled and posted to the records appro- 
 priate thereto. 
 
 J 
 
 »st!4;s.»*i«*w,«i^5Sfeb 
 
CHANGE OF ADDRESS BOOK 
 
 A systematic record of the changes of addresses of customers 
 is a prime requisite in every establishment doing an instalment or 
 credit business. V^/hen it is recalled that a very moderate busi- 
 ness in this line will have as many as three or four thousand ac- 
 counts, and that stores of the average size will have perhaps 
 twice as many, while numerous establishments are to be found 
 with from twenty thousand to fifty thousand accounts each, the 
 importance of a definite Change of Address System becomes ap- 
 parent. The outside men of the establishment, including col- 
 lectors and tracers, are the ones who are specially able to report 
 changes, but unless these changes are systematically recorded in 
 the ofifice when reported, what the outside men have done is of no 
 particular advantage. 
 
 The book provided for change of addresses by the Self-Prov- 
 ing Account Book Company is arranged upon a plan that has been 
 found very advantageous in actual use. It is ruled with a date 
 column on the left, then with a space for the name, following 
 which is a space for the old address and then a space for the new 
 address. There is also a column for a check mark, or, preferably, 
 the clerk's initials in posting the change of address to the custo- 
 mer's pay card or the collector's book, and another for recording 
 the posting of the change to the name index, and still a third for 
 posting to the street directory, if the latter book is maintained. 
 Collectors, bookkeepers, clerks, salesmen, delivery men, and all 
 others connected with the establishment, should be urged to 
 
ACCOUNTING SYSTEM 
 
 866^ 
 
 oi customers 
 istalment or 
 •derate busi- 
 housancl ac- 
 ave perhaps 
 to be found 
 Its each, the 
 becomes ap- 
 cluding col- 
 Die to report 
 recorded in 
 done is of no 
 
 le Self-Prov- 
 that has been 
 with a date 
 le, following 
 : for the new 
 r, preferably, 
 ;o the custo- 
 or recording 
 ill a third for 
 1 maintained, 
 men, and all 
 be urged to 
 
 svstematically report to the clerk in charge of th,s book e^er3. 
 
 change of address which comes to their knowledge; and m turn. 
 
 the clerk in charge should be held for proper postn.gs to the 
 
 other records as above mentioned. 
 
 The postings from this book, which in itself the bookkeeper 
 
 would regard merely as a journal, or posting medium, should be 
 made as regularly and as systematically as are, for example, the 
 postings of amounts from the Sales Record to the cus ome s 
 account. Any laxity or carelessness in this regard . fatal to he 
 system. Surely it is little comfort to the merchant to find that 
 
 some time or other he has lost an account simply by reason of the 
 carelessness or the negligence of some one in his ofifice. Many 
 losses occur simply because of the neglect of some one in matters 
 
 of this kind. 
 
 In some well conducted establishments the Change of Ad- 
 dress book is kept in a prominent place in the office, accessible to 
 eyery collector and delivery man, and to other employes of the 
 establishment, and the rule is made that every one who knows 
 of a change of address shall record the same in the book as soon 
 as the fact comes to his knowledge. By this plan the entries in 
 the change of address book are in the handwriting of the per- 
 sons getting the information, and. with the date, it shows at 
 
256 
 
 THE SELF-FROVING 
 
 what time the information was reported to the office. In turn, 
 as use is made of this information, or as lack of information con- 
 cerning an address is discovered, there is opportunity to give 
 proper credit to the one who has supplied it, or fixing the re- 
 sponsibility upon the one -who has failed to report a change of 
 which he was cognizant, as the case may be. The larger num- 
 ber of entries, of course, would in this case be in the handwriting 
 of the collectors, because they, of all connected with the estab- 
 lishment, are most likely to encounter facts concerning changes 
 of address. 
 
 It sometimes happens that it is known that a certain cus- 
 tomer has left a recorded address, but the new address has not 
 yet been ascertained. Such facts may be distinguished from 
 others by having the entries made in red ink. Red ink on the 
 Change of Address book, therefore, would be in effect a danger 
 signal, and would call the attention of every one in the store and 
 office to the fact that the address of a customer who has de- 
 parted, leaving no record behind him, is needed. Every one, 
 therefore, would be stimulated to do his best to ascertain the new 
 address and to complete the record in his own handwriting. 
 
 Referring again to the form of the Change of Address book 
 presented herewith, it will be seen that it is not absolutely neces- 
 sary that the red ink plan be resorted to, because the lack of par- 
 ticulars in the new address column would in itself be sufficient 
 notice to all who have occasion to refer to the book that ad- 
 ditional information is required. 
 
 However the book is arranged and managed, there should be 
 special eflforts made to impress upon all employes of the estab- 
 lishment the necessity of maintaining it up to date, and the 
 burden of responsibility should be made to rest especially heavy 
 upon the collectors, delivery men and other outside employe? of 
 the concern. 
 
In turn, 
 ion con- 
 to give 
 : the re- 
 lange of 
 [er nuni- 
 d writing 
 le estab- 
 changes 
 
 tain cus- 
 has not 
 led from 
 i on the 
 a danger 
 itore and 
 has de- 
 ery one, 
 1 the new 
 
 ess book 
 \y neces- 
 k of par- 
 sufficient 
 that ad- 
 
 ihould be 
 he estab- 
 and the 
 lly heavy 
 ploye? of 
 
 STREET DIRECTORY OF CUSTOMERS 
 
 It is to the advantage of every credit merchant or instahnent 
 dealer, particularly in the furniture business and doing a large 
 trade, to be able to designate on call the houses in the town or city 
 which contain goods in which he is interested, upon the basis of 
 lease, contract sale or upon chattel mortgage. Second-hand deal- 
 ers are loath to buy goods, the title to which is in the least clouded, 
 and, with a wisdom begotten of experience, it is their habit where 
 goods are offered them to inquire, so far as they have the oppor- 
 tunity, whether they are in any way covered by mortgage or con- 
 tract. In seeking this information it is not unusual for them to ap- 
 proach the instalment merchant with specific questions. The in- 
 stalment merchant in turn very readily gives the information de- 
 sired and cordially invites the second-hand dealer to come again, 
 simply because exchanges of information are greatly to his advan- 
 tage, frequently giving- him timely information of what dishonest 
 customers are trying to do. 
 
 Another class of people who are interested in information of 
 this kind are those who make a business of lending money on chat- 
 tel moragages, or upon the basis of a bill of sale on furniture and 
 household effects. For reasons already explained people in this 
 line of business want to know positively in whose name is the title 
 of the goods in question, and for reasons above eStplained they also 
 are frequently willing to call upon the instalment dealer for the 
 purpose of asking whether or not he has goods in such and such a 
 building, on such and such a street. The name that has been given 
 
 J 
 
 m^m^se 
 
2j.g THE SELF-niOVlXG 
 
 to the money lender or to the dealer in second-hand goods is very 
 frecuently different from that known to the merchant, and there- 
 for the only form of record which would n.eet requirements ts of 
 the nature of a street or buildin, index, so marked as to mdtcate 
 that goods belonging to the merchant directly or md.rectly are lo- 
 
 cated therein. , 
 
 Different plam are in use of records of th,s k,nd. several o( 
 „hicl, will be described. Eacl, plan outlined is best for some par- 
 .icular place. It is impossible to specify which is best to use .n a 
 given instance without knowing in advance various -"<""°- -j 
 drcumstances. Sometimes the street and house mdex can be ba ^ 
 upon a map. and in other cases it is based upon an abstract of the 
 street directory in the official publication of the town. 
 
 Where maps drawn to a very large scale can be read.ly ob- 
 tained showing each individual house to such dimens.ons as would 
 "rm^ sticking into the same a pin or tag a plan a„a,ogot,s to the 
 routing system used by large mercantile houses .s a-dable. The 
 m p is subdivided into sections of proper dimens,ons to fit the 
 Taw s of a commercial routing cabinet. The div>s,o„s may be 
 ; Jr pect to wards, or to general locaUties. according to the d.. 
 r tion li the managing man. A very good plan ,s to su d.., «, 
 map with respect to collectors' routes or d,stncts. By whatever 
 In Z map is subdivided each of the several sections .s mounted 
 Ta dr-er and the cabinet containing all is placed m a convement 
 po!i ,on in the office. A series of tags with pin pomts .s prov.ded 
 eithe all of one color where the sales are upon a smgle plan, or of 
 It ral colors where several plans of selling are employed. Each 
 tag" a ge enough to receive upon its face a sales number and on 
 Z ack a designation of the street and number to wh.ch tt .s e. 
 -oted Whenever a sale is made in the estabhshment and at the 
 rite the ledger account is opened, one of these tags .s filled out. 
 ::; d on L face with the sales number or ledger number or 
 
 tw^^wi'itni'il^iM'^*'**^'^"""^- 
 
Is is very 
 ul there- 
 ents is of 
 I indicate 
 Iv are lo- 
 
 several of 
 ionie par- 
 
 use in a 
 itions and 
 
 1 be based 
 •act of the 
 
 eadily ob- 
 s as would 
 ;ous to the 
 able. The 
 to fit the 
 >ns may be 
 ; to the dis- 
 bdivide the 
 y whatever 
 is mounted 
 convenient 
 is provided, 
 ; plan, or of 
 ayed. Each 
 nber and on 
 lich it is de- 
 , and at the 
 is filled out, 
 • number or 
 
 j|iinif!|M|ili'iir 
 
 ACCOUNTING SYSTEM 
 
 250 
 
 both, as preferences may be, and on the back, in the briefest possi- 
 ble manner, with an indication of the street and number for which 
 it stands. This tag is then taken to the drawer containing the map 
 that shows the street and house and it is properly stuck in place. It 
 thereafter stands as the record of the fact that there are goods in 
 the house indicated in which the merchant has an interest of the 
 nature indicated by the color of the tag. 
 
 When a money lender or dealer in second-hand goods ap- 
 proaches the merchant with an inquiry if he has goods in a certain 
 house a glance at the drawer of the cabinet, revealing the presence 
 or absence of a tag, is sufificient to determine the answer. Again, if 
 a salesman or driver or other employe of the estabhshment, no- 
 tices that goods are being removed from a certain building and has 
 a suspicion that the merchant is interested in goods located at that 
 number, a glance at the drawer also gives the facts of the case and 
 most satisfactorily answers numerous questions which would oth- 
 erwise arise in the office preparatory to taking such steps as are 
 necessary to protect the merchant's interest. 
 
 Where the cabinet of maps is not resorted to a plan that is 
 found to answer an excellent purpose is that of recording in a 
 book appropriated for the purpose the numbers seriatim on the 
 different streets making up the inhabited portions of the city. 
 There is first put down the name of the street and then on the left 
 hand of the page the numbers on one side of the street and on the 
 right hand page the numbers on the other side of the street. The 
 book used should be wide enough to allow ample space for writing 
 names opposite each of these numbers v«thout any conflict in the 
 middle of the page. A good plan is to rule a Hne down the centre of 
 the page, keeping the entries to the right and left of it, as the case 
 may be. As goods are sent out on lease or mortgage to a house in 
 any street this directory book is opened and the name of the cus- 
 tomer, with date and number of order, is recorded opposite the 
 
_^ THE aEi.rruoviNO 
 
 house in wWch he resides. In .he case of removal a red ink line is 
 drawn .hrongh .he name and „nden,ea.h. in red n,k ,s wru en 
 ^Reived .o •• following wi.h .he new s.ree. and nnmber. Then 
 afrains. .he new nnmber; on whatever s.ree. ,. may he loca.ed. 
 an en.ry is made, the same as in the original case. 
 
 A rigid enforcemen. of this rnle of indexmg the location of 
 eoods dis no. cos. much in office sys.em and .he expense n- 
 volvtd sTifiing indeed as compared wi.h .he informa.ton .ha. .s 
 , r V f rnished and .he hearing that .t has npon the c,.nck U.n 
 lich a merchant is sometimes rec,„ired to make to P™tect ns - 
 ,„ests. Manifestly, the work of indexing cannot be done by any 
 one else than a person entirely familU ■ with the town to wh.ch the 
 
 nrlreme of street directory for indexing the location o, 
 goods above described is hardly applicable wi.hon. ".<>«--;" 
 L large ci.ies where fla.s and apar.tnent houses preva 1. from the 
 ^. t so .any lots of goods are possible to be located a a g. n 
 number There are sc-n,- baildings in .he larges. c,..e», for exam 
 r'h . have as n.any as fifty sui.es of rooms or apar.men.s for 
 a s racically a single number on .he s.reet. Under the. con 
 
 Tu rlrder to overcome upon the -P P'-, pe-J^P^. « » 
 upon .he s.ree. directory scheme last outhned. n «'- '^'^^ " 
 where it is known that a certain mtmber refers to a fiat or apart 
 Thou e several lines or spaces in the arrangement of the book 
 r l p:::idrthns affording the chance to record a number of 
 customers opposite the one number. ^. . ,, . ,h. 
 
 Still ano.her plan of s.reet and house indexmg wh.ch has .h. 
 appro al of cer.ain merchants and office men ut.h.es the .onv n 
 Xnalcard index for the record. The colored d.v.s,on cards m the 
 ndex s and for .he streets and are wri..en up from the hs. of 
 
nk line is 
 s written 
 ler. Then 
 e located, 
 
 3cation of 
 cpense in- 
 lon that is 
 luick turn 
 tect his in- 
 )ne by any 
 I which the 
 
 location of 
 lification in 
 il, from the 
 d at a given 
 1, for exam- 
 rtments for 
 r these con- 
 cr to the cir- 
 
 referred to 
 jrhaps, than 
 z latter case, 
 lat or apart- 
 t of the book 
 
 a number of 
 
 ACCOrNTINO SYSTm fl 
 
 streets published in the street directory. Thew >«ion ear » are 
 usually a little wider than the regular cards in the ' ra> F.:kI nl the 
 regular or subordinate cards coming between these divisions bears 
 a number representing a lot or building. Whenever a sale is made 
 the card representing the building to which the goods are dehv- 
 ered is withdrawn from the tray, and thereon is recorded the name 
 of the customer, the number of the sale, the ledger number and 
 such other particulars as may be desired. The card is duly replaced 
 and is then ready for reference whenever any information concern- 
 ing that street and number is demanded. Where there are several 
 apartments or flats at a certain number this fact is recorded upon 
 the card corresponding to the number, with proper reference to 
 cards immediatelv following. Each of these bears a sub-head refer- 
 ring to the first card and is devoted to one particular flat or apart- 
 ment and in turn carries the same general record as described 
 above. 
 
 vhich has the 
 5 the ponven- 
 n cards in the 
 m the list of 
 
 
 ^^ 
 
 imi 
 
, .l! 
 
 REPAIRING AND JOBBING 
 
 In connection with every merchandising business, whether 
 in the furniture Hne or in some other branch of trade, there is 
 very often encountered the necessity of maintaining a repair or 
 jobbing department. A customer wishes an article of furniture, 
 for example, repaired, and naturally turns to the merchant from 
 whom it was purchased for the necessary work, f^rst, because the 
 merchant has a special interest in the goods, assuming that the 
 sale has been made upon lease or contract conditions, and, sec- 
 ond, because it is to be supposed that the customer is better ac- 
 quainted with the merchant from whom he made the purchase 
 than with anv other. It is to the interest of the dealer always to 
 tender facilities in this regard, merely for the purpose of conserv- 
 
 ing his general trade. 
 
 The repairing of a customer's goods demands a certain 
 amount of new material and consumes a certain amount of labor 
 There may also be involved the item of cartage, in the sense of 
 sending for the article and returning it. So much for the de- 
 scription of the cost items of one class of transactions which may 
 arise, and which should be treated as follows:-The customer is to 
 be debited with a fair charge for the work done and service ren- 
 dered, which is either charged in account or is collected for at the 
 time If such transactions are numerous a special Repairing and 
 Jobbing Account should be opened to receive the credit for the 
 charge. This account, in turn, is to be debited with the exact 
 cost, whether materials or labor, or both, as the case may be. 
 
ACCOINTINO KY8TEM 
 
 ::*ut 
 
 s, whether 
 le, there is 
 a repair or 
 -{ furniture, 
 chant from 
 because the 
 ng that the 
 IS, and, sec- 
 s better ac- 
 he purchase 
 er ahvays to 
 ; of conserv- 
 
 Is a certain 
 unt of labor, 
 the sense of 
 1 for the de- 
 ls which may 
 ustomer is to 
 1 service ren- 
 ted for at the 
 lepairing and 
 credit for the 
 ith the exact 
 case may be. 
 
 Thci the bahuK-e in this account will show the proht or loss, as 
 the case n.av be. following upon such work, and is to bo closed 
 fron, time to time into the regular Loss and Cain Account of the 
 business. That is to say, it is to be con.lucted precisely as a man- 
 ufacturing .lepartment, which is more fully .Icscribed in another 
 
 portion of this volume. 
 
 Where the repairing is only an occasional item, and the 
 volu,ne of the business does not warrant a special account as 
 above described, the entries may be managed through some o the 
 expense accounts of the business, always choosing that which by 
 its nature is most nearly related to the work done. The expense 
 account, whatever may be its name, stands the cost and also re- 
 ceives the credits. The profit in the transaction m this case 
 serves simply to reduce the general volume of expense repre- 
 sented bv the account through which the transaction has passed. 
 Still another plan is available. By the use of a Repatrmg 
 and Jobbing Record, which shows the cost of each transaction 
 and also shows the price at which the service is charged, the re- 
 pairing and jobbing may be run through the Selling Account n 
 this case Selling Account is to be debited with the cost of the 
 work, labor, materials, etc., with proper credit to Buying Account 
 for the materials consumed and to the other accounts for the 
 labor and other items involved. In turn. Selling Account re- 
 ceives credit for the amount charged for the service, and the gam 
 (or loss) passes through the regular channels, as heretofore de- 
 
 ''"'^The second class of requirements that devolves upon the re- 
 pairing and jobbing department of a store are those which arise 
 I the repair of goods damaged in transit and.in the alterations m 
 goods which are sometimes made to please customers. Repair 
 Lt are made to goods in transit, in the sense o -placmg J^a 
 has been lost or damaged, are, of course, chargeable either to the 
 
 P 
 
 m 
 
2U 
 
 THE SELF-PROVING 
 
 rn 
 
 ( '.■;< 
 
 transportation company or to the shipper, according to the terms 
 upon which the purchase was made or the transportation of the 
 goods undertaken. In some cases the repairs may be at the 
 cost of the merchant. However this may be, a record of the cost 
 of each individual job must be kept and the item charged to ihe 
 proper person or account. This will be the manufacturing com- 
 pany supplying the goods or the transportation company, if the 
 cost properly belongs to them. It will be Buying Account if 
 the cost properly belongs to the merchant. In each case there 
 must be the credit to the proper expense account, in case that 
 plan is employed for managing such transactions, or to Repairing 
 and Jobbing Account, in case a special account for such transac- 
 tions has been opened up, as above suggested. 
 
 In the case of alterations of goods to meet the requirements 
 of customers, the cost of the alteration necessarily becomes a 
 part of the cost of the goods, in which case the charge is, of 
 course, made direct to Buying Account, with proper credit to the 
 expense account, or to the account with Repairing and Jobbing, 
 in case a regular department for this purpose is organized. 
 
 The one thing to guard against, and the one mistake very 
 commonly made by inexperienced managers in matters of this 
 kind, is making the repairs or the alterations, as the case may be, 
 and taking no account of them whatsoever. The result of this 
 is that the concern, as a whole, stands an expense without the 
 expense being specifically charged to the department or account 
 to which it rightfully belongs, and without the proper contra ac- 
 count getting its credit. Good accounting and proper adminis- 
 tration of the business demand that no repairing shall be done 
 without, first, a record of cost; second, a proper charge for the 
 work done, and, third, a proper credit to the account devbted to 
 such transactions. It is not enough, in a case of repairs in the in- 
 terest of a customer, that the customer is charged and that the 
 
the terms 
 on of the 
 be at the 
 A the cost 
 jed to Lhe 
 ring com- 
 my, if the 
 Account if 
 case there 
 I case that 
 Repairing 
 :h transac- 
 
 quirements 
 becomes a 
 large is, of 
 redit to the 
 id Jobbing, 
 lized. 
 
 listake very 
 ters of this 
 ;ase may be, 
 jsult of this 
 without the 
 t or account 
 :r contra ac- 
 per adminis- 
 hall be done 
 large for the 
 t devbted to 
 lirs in the in- 
 and that the 
 
 ACCOUNTING SYSTEM 
 
 cre.lit goes somewhere-for example, to Selling Aceoun.. The 
 elstcnfer should be eharged, and at .he same ..me .he cred,. 
 should go .o .he aceoun. .o which, upon .he scheme of class.fica- 
 ion .hf. is a. .he ou.se. decided upon by .he estabhshmen., ,. 
 belongs. Nor is it sufficien. in .he case of repairs .o goods m 
 s.ock.ha. .he work is done and .he labor paid. The proper ac- 
 eoun., in .his case Buying, mus. be charged wi.h .he cc.. and .he 
 contra aceoun. credi.ed. The en.ries be.ween .he d.fferen, ac- 
 coun.s in the books affected by such a transacfon should be as 
 carefully and correctly made as would be the case between md.- 
 viduals. Upon the thorough administration, in th,s regard, of 
 the system adopted depends the accuracy of the results shown 
 from lime to time in the way of profit or loss. 
 
 gjtutim 
 
SEWING AND LAYING CARPET 
 
 In instalment stores doing a moderate business the sewing 
 and laving of carpets, maVng and hanging of draperies, curtains, 
 window shades, etc., is scarcely of sufficient importance to war- 
 rant the name of a manufacturing department. It is expedient, 
 therefore, to regard this work as a part of the regular Selling Ac- 
 count, keeping upon the order slips and requisitions for material 
 the cost of labor and all other items, in such a way as to give the 
 proper accounts credit for what they supply. By this plan the 
 total costs go into Buying Account, and Selling Account gets the 
 credit being first debited with the costs from Buying Account as 
 the items are charged. The balance in Selling Account would 
 then show the gross profit on transactions of this class as well as 
 
 on others. 
 
 These conditions prevail whether the sewing and laying is a 
 matter of a specific charge or lumped into the price of the carpet 
 laid. Whatever in the way of labor and materials is expended in 
 this regard is an additional cost of the merchandise sold, and must 
 be properly recorded. The records are to be kept in such a way 
 as will conform with the underlying principle here explained, and 
 show at all times in the balance of Selling Account the gross profit 
 made on the transactions. 
 
 For all such purposes as sewing and laying carpets, making 
 and hanging draperies, making and putting up window shades 
 etc an adequate system should be provided that not only will 
 take care of the materials consumed, but also the labor, m a way 
 
 C 
 
he sewing 
 i, curtains, 
 ce to war- 
 expedient, 
 Selling Ac- 
 Dr material 
 to give the 
 is plan the 
 ,nt gets the 
 Account as 
 Dunt would 
 IS as well as 
 
 I laying is a 
 { the carpet 
 expended in 
 Id, and must 
 such a way 
 plained, and 
 ; gross profit 
 
 jets, making 
 idow shades, 
 lot only will 
 bor, in a way 
 
 ACCOUNTING SYSTEM 
 
 m 
 
 to keep the office at all times informed of what is being done, and 
 ultimately what is to be paid. We present in this connection a 
 tag system that has been found to work very satisfactorily in car- 
 pet work. Something similar, properly adapted to the require- 
 ments, would work equally well in other directions. 
 
 An ordinary shipping tag is used and is so printed with 
 "raised leaders" between the sections as to readily separate into 
 
 (2) 
 '""" J. I nm » CO. 
 
 Carpeto,Oaoloth I Pnrniture 
 •^ » 1 1 gym w. i*H 
 
 No 873-.- 
 
 TilllaMill 
 
 uklH MttUatat. 
 
 Xo. 
 
 873 
 
 I'd* $ewta by 
 
 .873.. 
 
 . M» CnrpH deHrtrta t» 
 
 Lgcifnlty 
 lalilbr 
 Ordtr Mo- 
 
 FACSIMILE OF COUPON TAG FOR KEEPING TRACK OF CARPET WORK 
 
 four parts, as indicated by the reduced fac-simile presented here- 
 with The entire tag. bearing the name and address of the cus- 
 tomer in the upper section, with notation of the number of yards, 
 is attached to the roll of carpet. The lower part, or first coupon, 
 carries the sales number and is the office record of the persons to 
 whom have been entrusted the sewing and the laying. It also car- 
 
;lt- 
 
 
 208 THE SELF-PROVING 
 
 ries the serial number of the tag, the date, the number of yards of 
 carpet and the point to which the carpet is to be deHvered. The 
 second coupon also carries, the serial number, and is the sewer^s 
 voucher. As will be seen by the conditions printed on its face, it 
 is a check that must be presented at the office when demanding a 
 settlement. The third coupon, likewise carrying the serial num- 
 ber, is the layer's voucher, and must also be presented at the office 
 by the layer when he requests a settlement. Each of these 
 coupons, it will be noticed, provides space for the signature of 
 the persons engaged. 
 
 ^ ii 
 
 ^!^ 
 
{ yards of 
 ed. The 
 le sewer's 
 ts face, it 
 nanding a 
 :rial num- 
 the office 
 of these 
 mature of 
 
 OLD LEASE ACCOUNTS 
 
 Merchants who have been conducting an instalment business 
 upon some other system, and desire at a certain date to change 
 from the old plan to that which is described in th.s book will en- 
 counter at the outset the problem of handling the old leases. 
 The question that arises is. what is the best rule to follow m 
 handling the old accounts that have been carried along m the 
 shape of leases? In many cases a single customer has several 
 leases in operation, with balances owing on all of them. 
 
 It is advised under such conditions at the outset to«roup 
 these various balances into one amount, and to place that amoun 
 against the customer's name in a single ledger accoun Ihis 
 done, the old leases are left in operation, so far as the cdlec or 
 work is concerned, to be closed up in the usual way. ^^.th all the . 
 Iney that comes to hand credited in the ledger - the -gula 
 way, against the consolidated balance there recorded, until the 
 last balance of the last lease has been discharged. 
 
 The several numbers of the old leases should be noted on he 
 face of the ledger account, in such a way as to facihtate refer- 
 Inces from the new records to the old. Similar notations shoved 
 be made upon the leases themselves. As one after another of the 
 o^d balances are discharged, in the case "f --~^;/ ^ 
 paying under several leases, the numbers will be checked off. so 
 n^o constantly keep the bookkeeper informed of the progress 
 
 ^^ *';r;:n may be expanded stiU further and the consolidated 
 
 'tB ni Mi Biwaiw«w«' > i i ' 
 
 ■^u,. iiliiiMMiirf'iiiniriiiiwTiiii 
 
270 
 
 THE SELF-PROVING 
 
 balance entered upon a new pay card, making it, so far as the 
 collection department is concerned, the link between the new 
 and the old, thus enabling the collections to be managed alto- 
 gether upon the new plan, so far as records are concerned, while 
 keeping constantly before the collector the specified terms of the 
 old leases as they exist. Shquld a customer who has an old lease 
 in progress want more goods, then it will be necessary to transfer 
 the old balance to the new pay card, with the new charge below it. 
 In this way the account will be managed under one head. Slight 
 modifications of the plan here suggested will be required in cer- 
 tain cases, but the principle laid down will be found to work 
 satisfactorily for all. 
 
ar as the 
 the new 
 ged alto- 
 ed, while 
 ms of the 
 
 old lease 
 transfer 
 '. below it. 
 I. SHght 
 ed in cer- 
 
 to work 
 
 AUDITING THE BOOKS 
 
 Comparatively few merchants appreciate the advantage of a 
 daily audit of the books of their establishments, either personally 
 or at the hands of a manager or superintendent. Periodical 
 audits are very much the rule at the present time with large 
 concerns in various lines of business. Professional accountants are 
 frequently called in for purposes of this kind, and there is on such 
 occasions a verv thorough overhauling of records and vouchers 
 with a view to proving the accuracy of the books as histories of the 
 transactions which have really taken place. These periodical and 
 professional audits, always somewhat expensive, would be less 
 needed if the merchant or the manager of the business followed the . 
 plan of a daily audit of the books. 
 
 The books in a business office are to be regarded in the same 
 light as the log of a ship, and they ought to be so thoroughly and 
 honestly conducted that there would never be any question as to 
 the accuracy of the record. But, continuing the comparison of a 
 ship's log, where is the captain that would entrust the daily entries 
 in the log to one of the crew without so much as ever supervising 
 the work in order to see that the statements entered were in ac- 
 cordance with the facts of the case? But great carelessness in this 
 regard prevails in the bookkeeping of many concerns and it is not 
 infrequent that entries are made in the books which are incorrect 
 in themselves or of a character to be better left out entirely, simply 
 because they are made at the discretion of an inexperienced or ill 
 advised bookkeeper and are not subject to the immediate super- 
 vision of the managing man of the business. 
 
 Aside from this many entries of expenses ?.re carelessly made 
 and this carelessness continued ultimately leads to fraudulent en- 
 
272 
 
 THE SELF-rROVING 
 
 tries, all because it is not the rule that all entries shall be thor- 
 oughly supervised. Carelessness very often precedes actual dis- 
 honesty, and fraud will be very generally avoided by such a rigid 
 enforcement of system as will overcome the tendency of careless- 
 ness; hence the advice to merchants and their tnanagers that every 
 entry in the books of an establishment should be audited, checked 
 or approved, using whichever term is preferred, the same as every 
 invoice and voucher is similarly audited or checked. For this pur- 
 pose, in the books of the Self-Proving Accounting System col- 
 umns for Auditor's Check are provided wherever the same are 
 
 likely to be useful. 
 
 The plan of using the column marked Auditor's Check is ex- 
 tremely simple. It presupposes a regular daily examination of the 
 work of the clerk upon the part of the managing man, and, as evi- 
 dence that the work has been examined and approved, his initial or 
 some other mark is entered opposite each entry. Such an exami- 
 nation regularly attended to becomes a matter of routine involv- 
 ing far less labor than would be at first supposed. 
 
 This plan has the advantage of holding the bookkeeper or 
 clerk in charge strictly to his lines of duty. It tends to keep every- 
 thing up to date and overcomes the danger of carelessness pre- 
 viously alluded to, but, over and above all this, it keeps perpetually 
 before the business man or the manager just what is going on in 
 the establishment in a way to make him intelUgent in all his direc- 
 tions. It results in system upon the part of the managing man, as 
 well as system upon the part of his subordinates. 
 
 The daily audit of details in the manner above described, 
 taken together with an examination of the net results shown by 
 the Private Ledger and Balance Sheet, afford an assurance of an 
 accuracy in the records, a knowledge of the actual progress of the 
 business and a freedom from disagreeable surprises that are worth 
 everything to the business man. 
 
 I , -rt i r"TiT>i'.t ^ ii^t» t u]Ma«i ! ''WJ'f-^'"-'S''' 
 
II be thor- 
 actual dis- 
 ich a rigid 
 jf careless- 
 that every 
 :d, checked 
 ne as every 
 3r this pur- 
 lystem col- 
 e same are 
 
 ;heck is ex- 
 ation of the 
 and, as evi- 
 lis initial or 
 li an exami- 
 tine involv- 
 
 )kkeeper or 
 keep every- 
 essness pre- 
 perpetually 
 going on in 
 all his direc- 
 ting man, as 
 
 e described, 
 ts shown by 
 urance of an 
 jgress of the 
 at are worth 
 
 MANAGING THE BANK ACCOUNT 
 
 Some bookkeepers maintain a regular ledger account with the 
 bank, debiting deposits and crediting withdrawals. Others, who 
 pride themselves upon their progressiveness, scout this idea and 
 maintain that the only account with the bank that is necessary 
 is that afforded by the stubs of the check book. Still other ac- 
 countants, who consider themselves in the advance line of pro- 
 gressiveness, discard the conventional check book, with its time 
 honored stubs, and use checks put up in pad or tablet form, with 
 a check and deposit register. The latter has columns showing 
 deposits and withdrawals, and is provided with a special column 
 for balances. None of these plans, however, of keeping the bank 
 account is employed in the Self-Proving Accounting System, but 
 instead the method followed possesses features of all. 
 
 Irrespective of the way the bank account may be managed 
 as regards the cash account of the business, the merchant or his 
 manager, whenever a statement of conditons is wanted, will always 
 demand a separation as between the cash in hand, contained in 
 drawer or safe, and the amount in bank, subject to check. Ac- 
 cordingly, in the combined Private Ledger and Balance Sheet, 
 used with the Self-Proving Accounting System, separate columns 
 are provided for these items. However the cash record may be 
 kept, so far as relates to daily receipts and disbursements, and 
 however the bank account may be kept, so far as relates to de- 
 posits and withdrawals, there is posted to the Private Ledger 
 and Balance Sheet, day by day, the aggregate of receipts and 
 

 wmmmmm^mi^- 
 
 I 
 
 I'' 
 Bii'i' 
 
 THE SELF-PROVING 
 814 , 
 
 :rX .r^an Je\'r In .n.c.e a. a", ..« .He con 
 duTon oUh. cash account and the bank account r«p.ct.v.ly. An 
 
 X "a b ..nc cCumn is provided to receive .he figures represen.- 
 ;t'>.e .o.al o. these balances, .bus giving the cash resources „. 
 
 the establishment in a single amount. . 
 
 A few »ords of advice with reference to the management of 
 
 the Ikaccount, particularly in regard to records of depostts. 
 
 laserupon long xperience. will no. be ou. of place m .h,s con- 
 
 n eCio I. i» an excellent plan to make out deposU shps m 
 plicate, using for this purpose a carbon sheet. Le. .he^or,^n 
 
 go with the deposit and keep the duplicate shp for reference 
 
 "'"where there are numerous checks, either large or small in 
 amount, .his record frequently facilitates .he answer .o vartous 
 Tstio^s which arise, and no merchant who has -Ployed .hns 
 In any length of time would consent to return to a 1«> jy"»-"- 
 "me hod The duplica.e deposit slip may be regarded a. .he 
 Le as a voucher, or a record of a cash lUbursement, andj 
 U may be put in .he cash drawer .o remtan .here unt.l n a 
 the end of the day, or until the day's .ransaoons are completed 
 
 °" ' WheTetveral bank acounts are maintained, as is the custom 
 „ith some merchants, some of the extra sets of ~ "™- "'^ 
 lich the Private Ledger and Balance Sheet .s P— ■ "^^^^^^^ 
 utilised for maintaining their separate records. Or, ' P™ 
 all .he deposit accounts may be consolidated m .he Prtva e 
 Lldger under one head. Question, of plan in this regard are o 
 be settled by .he preferences of the mercham, or accoMmg .o 
 the judgment of .he managing man. 
 
 ig.j^jtMimri.iPiiwiW!i'i! P wff^'fi'' 
 
 UJ.-i-"PJU""-'-H. II I i-i I I ' """• 
 
 ■ r^m^^f^^^^^' 
 
nd checks 
 3f thePri- 
 »s the con- 
 ively. An 
 represent- 
 esources of 
 
 igement of 
 ){ deposits, 
 in this con- 
 >sit slips in 
 the original 
 reference if 
 
 or small in 
 r to various 
 iployed this 
 
 less system- 
 arded at the 
 nent, and as 
 re until near 
 re completed 
 
 is the custom 
 ;olumns with 
 nded, may be 
 ■, if preferred, 
 
 the Private 
 regard are to 
 
 accoi-ding to 
 
 BUYING GOODS AND RECORDING COSTS 
 
 Enough has been said in the classification of accounts pre- 
 sented in one of the chapters preceding, and also in our discussion 
 of the Merchandise Account, wherein it has been divided into 
 Manufacturing, Buying and Selling Accounts, to indicate the re- 
 lationship that the purchases of the establishment sustain to the 
 other departments, so far as account keeping is concerned. So 
 much, however, depends upon the way in which the goods are 
 got into the establishment, ready for selling, and the way in which 
 costs are recorded and marked upon the goods, that we are war- 
 ranted in still further impressing upon the man in charge the ne- 
 cessity of the utmost care in this regard, to the end that the 
 records shall be correctly maintained. 
 
 All orders which are given for goods should be kept in dupli- 
 cate, either by the einployment of a book of order blanks with 
 stubs, or by embodying the orders in a letter form and keeping 
 the duplicate of the letter, either made by carbon process or by 
 press copying. This rule should be rigidly observed, whether the 
 orders are given to travelling salesmen, or transmitted by mail to 
 the manufacturer or wholesale dealer. The prices in cases where 
 the orders are given upon a certain stipulation of cost should be 
 recited in the order, so as to avoid all chance of mistake. 
 
 On receipt of the invoice from the manufacturer or wholesale 
 dealer, it should be stamped in one corner, and preferably in all 
 cases in the same general position on the bill, in a way to show the 
 date the invoice is received. In addition the stamp should provide 
 
276 
 
 THE SELF-PROVING 
 
 
 M 
 
 i'\rl 
 
 
 spaces for recording such particulars as the date that the goods 
 are received, checked by, extensions, exanuned by, prices checked 
 by, etc.; notation of the manager's approval, and the account to 
 which the amount is to be charged, whether Manufacturing Ac- 
 count or some subdivisions of Manufacturing Account, or to Buy- 
 ing Account, and finally, a space for recording the place of the 
 bookkeeper's entry of the invoice. 
 
 The manner of filing the invoices is a matter of gr^at im- 
 portance. Whatever may be the plan employed it should be suf- 
 ficiently elastic to permit of instant reference to any required in- 
 voice at any time. At the same time it should satisfactorily pre- 
 serve them as against damage or loss. The old plan of pasting in 
 bill books has long since been superseded, and the plan of filing 
 in an ordinary letter file, which was in vogue some time since, has 
 also given way to the better plan of putting the invoices away in 
 a file which is constructed with hinged covers and posts or pillars 
 between the covers arranged to pass through the paper, and with 
 a clamp that fastens the top cover to the pillars, at any point, thus 
 (making it adjustable as required for the addition of bills or in- 
 voices at any time. 
 
 One of the uses to be made of the invoice, in addition to the 
 checking of goods, prices, etc., already referred to, is that of fur- 
 nishing prices to the cost book. If the goods in the establish- 
 ment are known by lot numbers, the lot numbers should be en- 
 tered upon the face of the invoice in a way to refer to the cost 
 book, and the entry in the cost book should be made in such a 
 way as to refer to the invoice, thus facilitating cross references 
 for all purposes whatsoever. 
 
 Almost every merchant has his own peculiar plan for mark- 
 ing cost prices on the goods. Sometimes it is done in cipher or 
 in cost mark figures on tags which apply to the goods as they are 
 put in the salesroom or warehouse, and sometimes the cost prices 
 
 :»a>*q^'3W.-«F»5*B=^ ' i .i i C i D i j Il WVm i J. I.UIl.UllHH. i - l i i Jl lI 
 
 .»l'w>! ■;4r >aiiy-'.m , 
 
m^m^iiiim&i'. 
 
 ACCOUNTING 8YSTKM 
 
 m 
 
 the goods 
 es checked 
 account to 
 turing Ac- 
 er to Buy- 
 lace of the 
 
 { gr^at im- 
 3uld be suf- 
 required in- 
 ictorily pre- 
 )f pasting in 
 Ian of fiUng 
 ne since, has 
 ices away in 
 sts or pillars 
 )er, and with 
 y point, thus 
 »f bills or in- 
 
 Idition to the 
 s that of fur- 
 the establish- 
 should be en- 
 ;r to the cost 
 ade in such a 
 OSS references 
 
 )lan for mark- 
 le in cipher or 
 )ds as they are 
 the cost prices 
 
 are kept in the Cost Record Book alone, with only the reference 
 numbers upon the page. In any event, a cost record book is de- 
 sirable, and also such a system of references from tags to book as 
 will facilitate comparisons whenever the same arc necessary. I he 
 Cost Record Book is to be ruled according to the classes of goods 
 which are handled, with columns properly headed, and in this 
 book articles or lots of goods are to be entered seriatim, as the 
 invoices are received. They are. as already mentioned, to be des- 
 ignated by numbers. In the main, manufacturers' design numbers 
 will be found satisfactory for the purpose and more convenient 
 for use than new numbers established upon any system whatso- 
 ever. 
 
 The particular plan of recording costs and marking costs that 
 is to be employed depends very much upon the chnracter of the 
 goods and the preference of the managing man. Any good plan 
 in this regard will answer the purpose, so far as the Self-Proving 
 Accounting and Business /System is concerned, provided it is 
 rigorously enforced and always strictly lived up to. without any 
 lapses or variations. The requirements may be briefly stated as 
 follows:— The cost of every article that goes into stock must be 
 recorded in such a way that when the article is sold the price at 
 which it was charged to Buying Account can be readily ascer- 
 tained, so as to be used in giving corresponding credit in that ac- 
 count, and in properly debiting the Selling Account. 
 
 The basis of cost at whicii goods are to be put into Buying 
 Account should be the cost of the goods laid down in the store or 
 warehouse. It should be the seller's invoice price, with freight 
 and cartage added. All goods, therefore, are to be charged to 
 Buying Account at cost as shown by invoices, with the expenses of 
 delivery added. The actual cost of the individual articles is to 
 be so recorded by tagging or in the cost book, or in both ways, that 
 whenever the article is sold there may be shown on the Sales Slip 
 
 I 
 

 'i 
 ft) 
 
 'I 
 
 
 2^ THE SELF-PBOVINQ 
 
 its cost price as well as the selling price. On the unvarying and 
 unceasing maintenance of this record of cost for both the debits 
 and credits of Buying Account, depends the accuracy of the bal- 
 ance in Buying Account, as representing the inventory or the 
 
 value of goods on hand. 
 
 In making the application of the foregoing principles, it is ad- 
 vised that every article of merchandise that is bought to be sold 
 again be tagged, showing in addition to cost price and selhng 
 price the source of supply, with the manufacturer's designatmg 
 number and direct reference to the invoice or other record of pur- 
 chase Where the goods or articles are manufactured by the con- 
 cern itself, corresponding reference should be made to the slips 
 or invoices which accompany the goods in their transfer from 
 Manufacturing to Buying Account, as elsewhere explained in this 
 volume. 
 
 ill 
 
arying and 
 
 the debits 
 
 of the bal- 
 
 ory or the 
 
 lies, it is ad- 
 t to be sold 
 and selling 
 designating 
 cord of pur- 
 t by the con- 
 to the slips 
 ransfer from 
 lained in this 
 
 RENT, TELEPHONE, TAXES, &C. 
 The rent of a store or warehouse is usually payable monthly, 
 hut Iccarnally leases are ma.e payable -'--h^^^- ^ 
 some cases bi-monthly or quarterly. In some part o th oun ry 
 t is customary to pay rent in advance. In other -« « ^ 
 is due at the end of the month or other charge per,od. Telephone 
 Is are sometimes paid monthly and -et mes q^ar ert. 
 Thev are usually due at the end of the charge penod. Insurance 
 p'yiLn advance, frequently for a period of one year, and m ma^>, 
 cases for longer periods, as, for example, three or fiv. years^ 
 T^es are payable annually at the end of the fiscal year m whtch 
 
 "' A ^'^consideration of these several facts will show that 
 
 there ards of doing business in mutters of this km. accnung 
 
 rom tae to time which, so far as individual months are con- 
 
 Tre not correctly distributed by the payme,;ts as they are 
 
 Tdl O the rid! the tax bill may be paid in Decetnber but 
 
 made, un „„<..t„elfth of which belongs to each of the 
 
 " " ' r^thst the year On the other hand, the insurance bill 
 several months m tne year, wn ^.ujrtxr civth 
 
 ly be paid in January for three years' insurance, on -thirty- .xth 
 Tf wWch is a proper charge to each of the months of the penod _ 
 
 It is not sufficient to say that on the general average and after 
 .he bus ness is in operation, these various items, taken coUeCvely. 
 even u or balance each other. Good bookkeeping and good bus- 
 „e management demand correct accounting for each o these ex- 
 penses in a way to let each month stand its own proper share of the 
 
 MMMWnVMW^OBMIJ^wwwMl 
 
 j^,i^^,.^.- ^^y-m^^^mi^-' Y 
 
 J 
 
i:!t»:!li!.i 
 
 'SeSm 
 
 ii 1 
 
 280 
 
 THE SELF-PROVING 
 
 burden without excess, nor yet with shortage. It is recommended, 
 therefore, that an account be opened with each of these expenses 
 in such a way that each month shall be debited with its own proper 
 share, letting the account with the source of the expense be cred- 
 ited from time to time, irrespective of the date when the payment 
 of the amount is made. Two illustrations, typical of all such ex- 
 penses as are here cited, are sufficient for the purpose. 
 
 In the first instance we will assun e that the taxes on the 
 stock of merchandise and other assets of the business average 
 $120 a year, and that the tax is due and payable in December. The 
 matter should be treated as follows: — During the month of Janu- 
 ary an account should be opened in the name of "The Mayor, Al- 
 dermen and Common Council" of the city, or in such other name 
 as the tax bills bear, which account should be credited with $10, or 
 one-twelfth of the estimated assessment for the year, and the 
 proper expense account debited therewith, and similar crefat. 
 should be made to the account at the end of each month throu.. -, 
 out the year, with the proper expense account debited each mor..!: 
 in like sum. The account that is thus credited should be placed 
 in that portion of the ledger which contains the accounts of the 
 liabilities of the establishment, or, as classified in this volume, 
 among Sundry Creditors. The account increases month by 
 month, showing the actual liability at all times, until finally, at 
 the end of the year, or whenever the pay day arrives, it is dis- 
 charged by the payment of the taxes. 
 
 With respect to this plan it may be objected by some that it 
 is not always possible to ascertain the exact amount of taxes so far 
 in advance as twelve months prior to the payment. The reply 
 to this is that taxes do not greatly vary from year to year, save, 
 first, where there is an unusual increase or diminution of property 
 reported to the assessor, and, second, where the tax rate varies 
 from that of previous years. These conditions are known by the 
 
 >ii.*i»i»ill»i!ili.ti»mi;iii»'i*«'''Wi(iiwriiwi»iiiiiiwi'»Mnmi' 
 
 ummim^^immi^mi&£SiKf':4i9 ' 
 
ACCOUNTING SYSTEM 
 
 281 
 
 ;ommended, 
 ;se expenses 
 1 own proper 
 nse be cred- 
 :he payment 
 all such ex- 
 axes on the 
 less average 
 :ember. The 
 nth of Janu- 
 : Mayor, Al- 
 other name 
 with Sic, or 
 :ar, and the 
 nilar crec'ii 
 ith throu.. 
 each mor..'.: 
 lid be placed 
 ounts of the 
 this volume, 
 month by 
 :il finally, at 
 es, it is dis- 
 
 some that it 
 
 f taxes so far 
 
 The reply 
 
 year, save, 
 
 1 of property 
 < rate varies 
 nown by the 
 
 business man in a way to enable him to make due allowances in 
 estimating the amount of his taxes for the year. The records of 
 other years, the report that is made to the assessor and the 
 Knowledge of the needs of the city or county as aflfecting the tax 
 rate enable the merchant to calculate the amount very closely. 
 In managing the account with taxes in the way here described it 
 is expedient to assume a maximum rather than a minimum sum 
 as the amount of taxes to be provided for. If after the actual tax 
 bill is received it is found that each month through the year has 
 been charged with a fraction too much, then the amount may 
 be evened up by giving December, or some other month in the 
 latter part of the year, the benefit of the excess which the prior 
 months have borne, or December may be charged with the same 
 amount as the other months and the excess thrown directly into 
 Loss and Gain Account. 
 
 The other illustration of expenses of the kind referred to will 
 be in the matter of insurance, where the premium has been paid in 
 advance, we will say. for two years. Assume, for the sake of illus- 
 tration, that in January of a certain year a premium of $120 has 
 been paid for insurance on a certain portion of the stock, covering 
 the expense in this regard for the period of twenty-four months. 
 This amount at the time of payment should be charged to an ac- 
 count opened with the insurance company, or the insurance broker 
 through whom the insurance is effected, located in that portion 
 of the ledger containing accounts representing amounts due the 
 business, or, as accounts are classified in this work, among Sun- 
 dry Debtors. The account, as a fact, is an asset, hecau."**. if for 
 any reason it is desired to cancel the policy the premium will be 
 returned to the merchant pro rata, or allowed to apply upon an- 
 other policy, all according to the rules of the insurance company, 
 Debit the insurance company or insurance agent, therefore, with 
 the premium when paid, and month by month charge to the 
 
 IgBl^-V ^.:.^iiJ^'iii1 ^^ ^ ^f JUti<^^' '•** 
 
 ■■■■■■Mi 
 
 ^»mi^u^timmm\iii»twmmltimimamKUKi*mcuiliii 
 

 
 2g2 THE SELF-PROVING 
 
 proper expense account its pro rata amount, crediting the com- 
 pany or agent, as the case may be, in like amount. At the end 
 of the first year, therefore, one-half of the premium will have been 
 consumed, and at the end of the second year the entire amount 
 will have been consumed. As the account has progressed, near- 
 ing a balance, the bookkeeper or business man will have been re- 
 minded thereby that a renewal of the insurance is in order. 
 
 Similar methods will occur to the bookkeeper for managing 
 all other expense costs which are paid either in advance of the 
 charge period or at its conclusion. Care should be taken in all 
 such cases to properly apportion the expense between the dififer- 
 ent months, in order that the percentages of operating expenses, 
 which it is desirable to work out accurately, shall always cor- 
 rectly represent the growth and development of the business. 
 
 If rent is paid monthly no account is necessary with the land- 
 lord, but if rent is allowed to go unpaid for a time then an ac- 
 count with the landlord should be credited month by month with 
 the amount due him, so that the proper charge may be made to 
 expenses for the month. If the rent is payable quarterly, then 
 an account with the landlord should be opened up, with proper 
 credit month by month, with corresponding debit to the ex- 
 pense account. If telephone charges are paid monthly, then no 
 account is necessary with the telephone company, but if the bill 
 is settled only at long intervals, then an account should be opened 
 with the telephone company, to be credited from time to time 
 with the cost of the service and debited whenever the liability is 
 discharged. 
 
ing the com- 
 At the end 
 /ill have been 
 ntire amount 
 jressed, near- 
 liave been re- 
 order. 
 
 For managing 
 Ivance of the 
 e taken in all 
 en the differ- 
 ing expenses, 
 1 always cor- 
 : business, 
 kvith the land- 
 e then an ac- 
 y month with 
 y be made to 
 uarterly, then 
 I, with proper 
 it to the ex- 
 ithly, then no 
 but if the bill 
 uld be opened 
 time to time 
 the liability is 
 
 AVOIDING COkFUSION WITH SALES NUMBERS 
 
 The objection has been raised to the book or sheets devoted 
 to the Record of Sales Numbers in the Self-Proving Account- 
 ing System that it is possible for a salesman to take a number 
 from the book, put it upon a pad of sales sheets, and yet fail to 
 record the name of the customer in the record against the num- 
 ber. This would result in the next salesman taking the same 
 number, the duplication producing a state of confusion not at all 
 satisfactory. Two lots of goods would be out bearing the same 
 number, so far as the invoices held by the customers ctro con- 
 cerned, and also as indicated by the slips delivered to the shipping 
 department. While this objection has some force in certain es- 
 tablishments, it is deemed to be of very little importance in con- 
 cerns as ordinarily constituted, and yet it can be readily over- 
 come. Several plans may be suggested for avoiding the difficulty 
 and lessening the danger of confusion among numbers. 
 
 The first of these is to establish the rule in the routine of sell- 
 ing that when a number is taken from the Number Record a 
 check mark shall be put against the number before the number 
 is written on the sales blank. After the number has been written 
 on the sales sheet, the name of the customer is to be written op- 
 posite the number that has been checked on the Number Record. 
 The effect of this is to show a check mark against the number on 
 the Record, even though the salesman, in his hurry, has neglected 
 to write in the custoamer's name. The presence of the check mark 
 is as complete a notification to the next salesman that the num- 
 ber opposite it has been used as though the name of the customer 
 
ti' 
 
 'V 
 
 2M 
 
 THE SELF-PROVING 
 
 were written there in full. The placing of a check mark against 
 the number becomes, in a short time, so much a matter of habit 
 to the salesman as to make mistakes in this regard extremely rare. 
 
 Another plan employs a bell register with numbers, having 
 the number space in its face covered by a shutter. The shutter 
 is so arranged that it lifts to show a number whenever the bell is 
 rung, keeping it in view only so long as the cord or lever is held 
 down. By this plan there is revealed to the salesman the number 
 that is next in order, and against which he is to record the name 
 of his customer. 
 
 A third plan makes use of the ordinary ofifice numbering ma- 
 chine. This device is so fastened in place on the desk as to be 
 readily accessible to anyone who has occasion to use it. The 
 printing lever, however, is locked, but each salesman is provided 
 with a key. When opened only a single impression can be made 
 before it again locks automatically. The number impressed in 
 this way upon the order form or sales sheet shows where the cus- 
 tomer's name is to be recorded in the Number Record. 
 
 Another plan which has been found to work well in such cases 
 uses the Record of Sales Numbers as provided in the system, but 
 restricts the care of the book to a clerk, who also is in charge of 
 the Sales Sheets and order blanks. The salesmen, from time to 
 time, make requisitions on this clerk for an order holder, with 
 a set of blanks, of whatever kind is required. In response there 
 is delivered a set of sheets on which a number has already been 
 printed by an automatic numbering machine, or applied thereto 
 by pen or pencil, as the case may be. When this pad is delivered it 
 is charged to the salesman by recording opposite the number on 
 the Number Recoid the salesman's initials. This plan prevents 
 any two sets of sales slips getting out which bear the same num- 
 ber. It also removes from the salesmen the responsibility of the 
 record in the Number Record, and has the further advantage 
 
 
ACCOUNTING SYSTEM 
 
 886 
 
 nark against 
 tter of habit 
 :remely rare, 
 bers, liaving 
 The shutter 
 er the bell is 
 lever is held 
 the number 
 rd the name 
 
 mbering ma- 
 esk as to be 
 Ltse it. The 
 1 is provided 
 can be made 
 impressed in 
 lere the cus- 
 )rd. 
 
 in such cases 
 : system, but 
 in charge of 
 rom time to 
 holder, with 
 sponse there 
 already been 
 plied thereto 
 s delivered it 
 e number on 
 Ian prevents 
 
 e same num- 
 ibility of the 
 ;r advantage 
 
 
 1 
 
 V ' 
 
 of keeping from each individual salesman the opportunity to esti- 
 mate what his fellow salesmen are doing by inspecting the record 
 of their customers. Where a set of blanks is destroyed, as, fot 
 example, where a mistake is made in the customer's name or ad- 
 dress, or where an order is cancelled after it has been partly en- 
 tered up, the mutilated set of sheets is returned to the office and 
 a fresh set is handed out in its place. This plan is perhaps the 
 simplest to install, all things considered, and has various special 
 advantages attending its use. In a small estabUshment the re- 
 sponsibility of handling the sales binders or pads would be a sub- 
 division of the work of the entry clerk, or the bookkeeper, or 
 someone else who could conveniently attend to it. 
 
 Still another plan may be suggested, and is one which substi- 
 tutes for the Number Record, book or sheet form as the case may 
 be, the device known as the Autographic Register. The record 
 of sales numbers is printed in duplicate on the rolls with which 
 this machine is provided, and a carbon sheet is inserted in the usual 
 manner. The opening in the inclined face of the machine is re- 
 stricted to the space in the printed form devoted to a single 
 number. It becomes the salesman's duty then, when getting a 
 number for his order, to write the customer's name in the open 
 space shown on the face of the machine opposite the number 
 there shown, turn the crank and tear oflf the slip that is thrown 
 out. This slip, after its number has been written on the order 
 form, in the space provided for the purpose, is attached to the 
 order and turned into the ofifice as evidence of the correctness 
 of the number used. Inside of the Autographic Register on the 
 second roll is the duplicate made by carbon of the name which 
 the salesman has written opposite the number which he has used. 
 This plan insures the numbers being used seriatim, and most 
 effectually provides against two orders being entered against a 
 single number. 
 

 PART IV 
 
 SUGGESTIONS TO INSTALMENT 
 MERCHANTS 
 
 1 
 
 J 
 
r^;j^!t^iLi-^i~:w3ta!t^M 
 
CHARACTER OF THE ADVICE 
 
 The advice and suggestions presented in the following pages 
 are based upon the practical experience of an instalment dealer 
 who has been successful in the conduct of a business through a long 
 term of years. The items of advice are presented not in an offi- 
 cious way, nor in the sense that other merchants do not know how 
 to manage their affairs, but instead with the feeling that there are 
 some who will be benefited by at least a part of what is here offered. 
 
 Those who do not need advice and counsel will of course 
 skip this part of the book. The pages will not be the less mter- 
 esting on that account, however, to those who are able to make 
 use of what is presented. On the other hand, there are many who 
 are considering the expediency of entering upon the plan of instal- 
 ment sales. The leading question in the mind of such a merchant 
 is dual in character. ■ First there is the problem of the necessary 
 bookkeeping or business machinery which it is the mission of other 
 parts of this book to describe, and, second, there are the features of 
 the business itself, together with its limitations, to be considered. 
 
 Only the more prominent features of the instalment or credit 
 business are here discussed. There is much omitted which might 
 have been included, but which if presented would only have swelled" 
 the volume to unwieldy dimensions. Enough is given, however, to 
 enable those who are not employing a satisfactory system to make 
 improvements and to help those who are considering a change in 
 their business plans to judge intelligently of the advantages of 
 selling upon the instalment plan. 
 
 J 
 
ATTENTION TO CUSTOMERS' WANTS 
 
 In the instalment business there are very many reasons why 
 customers become displeased and feel that they have grievances. 
 In the first place, the environments and education of the majority 
 of the people who buy upon the instalment plan are such as to 
 make them supersensitive and to cause them in many instances to 
 magnify the importance of very small matters. Whenever a cus- 
 tomer has a complaint or feels displeased, unless he is given proper 
 attention at once his resentment is likely to go so far as to greatly 
 damage the reputation of the house. It is essential to the interests 
 of the merchant that the customer always should be pleased, in or- 
 der that business relations may be maintained upon a satisfactory 
 basis. It is still more essential, however, that the customer should 
 be so well pleased that his influence among his friends and ac- 
 quaintances is always in favor of the house rather than against it. 
 
 The merchant may find it very difficult sometimes to comply 
 with the requests that are made and to investigate all the com- 
 plaints that are entered, particularly as they are very often appar- 
 ently trivial and because they occur so frequently. Still, his posi- 
 tion is such that he cannot afford to really quarrel with the cus- 
 tomer, and therefore he must be willing to go a good way to satis- 
 fy the customer and retain his good will. The recommendation of 
 the store by a customer to his friends is worth a great deal to a mer- 
 chant doing business upon the instalment plan, and therefore the 
 trouble and expense that it may be to attend to his customers' 
 
ACCOUNTiNO SYSTEM 
 
 201 
 
 NTS 
 
 reasons why 
 ; grievances, 
 the majority 
 e such as to 
 instances to 
 "never a cus- 
 given proper 
 as to greatly 
 » the interests 
 ^leased, in or- 
 a satisfactory 
 itomer should 
 iends and ac- 
 lan against it. 
 nes to comply 
 » all the com- 
 y often appar- 
 Still, his posi- 
 with the cus- 
 d way to satis- 
 nmendation of 
 t dealto a mer- 
 d therefore the 
 his customers' 
 
 complaints can very properly he regarded as an advertising ex- 
 pense. 
 
 Looking at the question another way, and in view of the in- 
 jury or damage that may be done by a customer who has been dis- 
 pleased in his transactions, and who indulges in talk against the 
 store, while meantime paying his own account very reluctantly, 
 the trouble and expense of pleasing customers may be regarded as 
 an insurance — something that is paid out from time to time for the 
 purpose of insuring prompt and satisfactory settlements. 
 
 When customers are delinquent in payments through sick- 
 ness, hard luck, lack of employment and other causes, the mer- 
 chant must use careful judgment in order to avoid doing that 
 which, from the customer'.^ point of view, may seem harsh or un- 
 just. When the merchant is satisfied that his customer is honest 
 and is doing the best that he can, and that he will pay as soon as he 
 is able, it is better to wait six months, or a year, or even two years 
 if necessary, thereby obtaining the gratitude of the man and his en- 
 thusiastic indorsement of the house among his friends, than to re- 
 sort to harsh measures and produce opposite results. Leniency in 
 matters of this kind, as the instalment merchant soon finds, always 
 results in profit in the end, whereas severe measures, harshly en- 
 forced, result almost always in a loss. To sum up this advice, the 
 merchant's best interests are served by carefully studying his cus- 
 tomers, and acceding to their whims whenever he can, satisfying 
 their Uttle wants as opportunity presents, and being intelligently 
 considerate in their times of misfortune. He should at all times 
 and under all conditions make them feel that he is their friend. 
 
 Of course there is a line to be drawn somewhere. Only the 
 most discreet judgment, however, is adequate to determine when 
 a man is deserving of leniency and favors and when the opposite 
 conditions prevail.. But it is better for the business to occasion- 
 ally show favors to an undeserving man than regularly to turn 
 
292 THE SELF-PROVma 
 
 down those who, by their character and circumstances, are really 
 entitled to consideration. Where a customer is proven to be 
 tricky and dishonest it is still wise to use caution in handling him, 
 so as not to cause any more unpleasantness than already exists. 
 
 c .i 
 
 ,\i. 
 
 :i ^\- 
 
 :.i:Tr ii Trr i TT '-•^■^"■-'■■'■'^-^'^ 
 
~1 
 
 \, are really 
 Dven to be 
 ndling him, 
 y exists. 
 
 AVOIDING NUMEROUS LEASES OR CONTRACTS 
 WITH THE SAME CUSTOMER 
 
 Comparatively few persons, in buy.:ig furniture or household 
 goods on the instalment plan, have at the outset a complete hst 
 of what is required. After a part of the goods is delivered they 
 discover still further needs, and therefore desire to extend the 
 purchase to cover the same. If the original contract or lease has 
 been closed, it becomes necessary to make a new one m order to 
 cover the additional articles. For bookkeeping reasons, as well 
 as others, it is objectionable to have numerous leases or contract 
 sales with the same person at a given time, and therefore care 
 should be taken to get all the goods that the customer requires 
 entered under a single contract. 
 
 For this reason it is frequently expedient to keep the sales 
 sheet open for a little time after the sale has apparently been com- 
 pleted This plan is quite possible, and a little care will very gen- 
 erally accompUsh the object, thus carrying the entire bill in a 
 single item in the Instalment Ledger, where otherwise several 
 contracts would exist. No fixed directions can be offered in mat- 
 ters of this kind. It is necessary to exercise discretion m each 
 individual case. It is always possible to keep a sale open for, say, 
 two or three days' time, and a Uttle questioning of the customer 
 upon the part of the discreet salesman will almost always deter- 
 mine whether or not more goods are Hkely to be required. The 
 ruHng of the Instalment Ledger is such that two or even three 
 sales may be entered up in any given month, but aside from this it 
 
204 
 
 THE SELF-PROVING 
 
 is expedient, for reasons already explained, to keep the business 
 as much condensed as possible, and to this end have the sales con- 
 tracts as few in number a§ may be. 
 
 t r 
 
e business 
 ; sales con- 
 
 PARTIAL DELIVERIES 
 
 I. sometimes happens that an order from a customer who 
 buys under lease or contract cannot be fully delivered m one lot. 
 Sometimes the delay in delivery of a portion of the goods^^s du 
 .0 conditions in the store; sometimes the delay .s due o the cu 
 tomer being uncertain as to the dimensions of some of the ar .cles 
 hara'e covered by the contract, and which are to be made up 
 according to dimensions to be supplied. Somet.mes .t .s due to 
 rLlc'of goods, waiting-for the -val of ^m^'";;;^ *:^; 
 known to be in transit, and sometimes .t .s d- '» «''-- ^ 
 time required to measure for and make the carpets. Somet mes 
 bv eason of one of these causes, and again by reason of others 
 theeTsa delay of one day or several days between the da e of the 
 sae rshown on the Number Record, and the time that ,t ,s 
 om^ted, so that it can be charged on the Sales Reco^^ 
 
 It is advised in such cases that withm reasonable l.m ts par 
 ,ial iveries be carried on the Sales Slip until the dehvery .s 
 cot Led, so that when the charge to the --mer . ma e nd 
 corresponding credit given to Sales Account, the "■■''e'- ^^aU be 
 comolete While the order is being thus earned upon the Sales 
 Slbpartial deliveries may be made from time to time, and when 
 o matthe goods delivered indicated by checking v^ tj-e s^p- 
 ner's initials and the date in the proper column of the sh.pper s 
 p the Sales Slip. By this plan the blanU spaces m .h,s co - 
 „1 on the Sales Slip will at all times show ,ust what goods are 
 vet to be delivered. 
 
II 
 
 296 
 
 THE SELF-PROVING 
 
 The plan prevailing in some establishments of running the 
 sales charges on to Sales Record before the order is completed, 
 leaving the amount column blank, to be filled in whenever the 
 order is finished, is objectionable, because in the event of the final 
 delivery being delayed several days the books are thereby put 
 that much behind time, so far at least as proper credits to Sales 
 Account and charge to the Instalment Ledger are concerned. 
 Nor is it expedient to make the charge to the customer before 
 the delivery is completed, even though the value of the items is 
 fully determined. It is neither good business nor good book- 
 keeping to make a charge for merchandise on the books prior to 
 the delivery of the same to the customer. It is necessary, there- 
 fore, to urge upon the delivery department, and all concerned, 
 the importance of a speedy completion of the order, to the end 
 that the books may be kept up to date. Extra effort should be 
 made in this direction, because in the instalment bus'iiess, unlike 
 ordinary merchandising, the amount of a sale cannot be split up 
 and charged in several items upon the ledger according to the de- 
 liveries. The lease or contract calls for a fixed amount, and the 
 ledger charge should show the same amount in one sum. 
 
 It sometimes happens that a lease is made, even to the ex- 
 tent of the first payment on account, with directions for delivery 
 a week, a month or even three months later. The plan that is 
 expedient to pursue in such cases is to get the goods ready for 
 delivery and to assign them a special place in the warehouse, 
 there to wait the customer's order for final delivery. In such 
 cases the charge should be put through the books at once, be- 
 cause the goods have been actually supplied, although not de- 
 livered to their final destination. They are the customer's goods 
 by the terms of the contract, but are temporarily held in a, place 
 different from that to which they are to be finally consigned. 
 Goods are also sometimes held by the consent of the customer, 
 
 .^Mi 
 
ACCOUNTING SYSTEM 
 
 297 
 
 inning the 
 completed, 
 enever the 
 of the final 
 lereby put 
 ts to Sales 
 concerned, 
 mer before 
 he items is 
 ood book- 
 ks prior to 
 >ary, there- 
 concerned, 
 to the end 
 : should be 
 less, unlike 
 be split up 
 J to the de- 
 tit, and the 
 m. 
 
 to the ex- 
 :or delivery 
 ilan that is 
 s ready for 
 warehouse, 
 '. In such 
 t once, be- 
 gh not de- 
 ler's goods 
 1 in a, place 
 
 consigned. 
 ! customer, 
 
 or at the option of the merchant, because only a part of the first 
 payment has been made. Where the goods have been actually 
 sold and are kept in a special lot by themselves in the warehouse 
 there can be no objection to the charge going through the books, 
 even though the goods have not yet left the merchant's premises. 
 
,,ii^l(.,i.lliH.-HPMl|i* 
 
 S'l 
 
 JIODIFICATION OF CONTRACTS 
 I. should be laid down in every credit business where lease or 
 contract sales are made that neither additions to - ;''^"*;; 
 from nor yet changes of any other kind are to be made on order 
 forms or contracts after the arrangement has once been co.np.^ed 
 and signed. The temptation to do this is very great. For 
 ample if a customer should buy a bedroom suit at. say $.5, along 
 Th other articles, and after the sale is completed, w,th the con- 
 tract signed, he should make up his mind that he P-f-«d t'- 
 other bedroom suit that he had been looking at. cos.mg. say $30, 
 the papers should not be altered .0 suit the change m pnce. b„ 
 Lstead the original contract should be cancelled and a new one 
 
 made out from beginning to end. ■.„„„„,. \. 
 
 To change an item in a contract or lease above a s.gnature 
 wrong in principle and hazardous in the extreme .n practice It 
 Xe-oom for dispute upon the part of the -'omer^ eca ,e on 
 L most casual exa„nnation there ,s the — e <, -h-ge 
 having been made, and the customer may assert that the change 
 rbln made to his disadvantage and ^^"^ ^^^ 
 subsequent to the signing. The evidence afforded by the face of 
 thelease or contract, when it comes up for scrutiny, .s strong cor- 
 ob^ltion of the truth of the contention of the custom., an 
 therefore in the interest of the merchant the contract o,; lease rnust 
 ahvavs be kept free from additions, deductions or amendments o 
 arkind. Wherever changes are made, irrespective o the speetal 
 eason governing the change, the original contract or lease should 
 
ACCOUNTING SYSTEM 
 
 290 
 
 ^here lease or 
 5r deductions 
 lade on order 
 !en completed 
 eat. For ex- 
 say $25, along 
 with the con- 
 preferred the 
 iting, say, $30* 
 ;e in price, but 
 and a new one 
 
 be cancelled and a new one made out, correctly representing the 
 ■ transaction in its modified form. By this plan the record of 
 transactions is kept straight without any confusion or m.xmg. 
 
 It occasionally occurs that an article has been sold to a cus- 
 tomer which, when it comes to an examination of "« »•»* '^ 
 found to have been previously sold to some one ^^^<:- '"\^' '""' 
 is no dupHcate in stock it can be delivered only to the firs, pur- 
 chaser This is upon the assumption that no more of tins precse 
 article is to be had. Under such circumstances there >s „oth,ng 
 left to do but to cancel the sale, so far as th,s ptece of "'" hand.se 
 concerned, which, of course, means that the lease that has b«n 
 made out and signed must be cancelled and a new -e covenng 
 ,he goods as they were actually delivered must be executed. Th.s 
 nvariable rule, with reference to additions, deduct.ons and 
 c I ,ges n contracts and orders, must be carefully observed .n 
 order to avoid no. only confusion in records, but a dub.ous post- 
 tion in case legal measures for collections are resorted to. 
 
 e a signature is 
 in practice. It 
 ner, because on 
 ce of a change 
 ;hat the change 
 his knowledge 
 d by the face of 
 ly, is strong cor- 
 e customer, and 
 act or lease must 
 • amendments of 
 ive of the special 
 :t or lease should 
 
CHANGING THE FORM OF A CUSTOMER'S AC- 
 COUNT 
 
 Sales are sometimes made upon the understanding at the 
 time that the debt is to be immediately discharged by the payment 
 of cash, which, later, by arrangement with the customers, are . 
 changed into lease sales with instalment payments. The account 
 in the first instance has been located in that portion of the ledger 
 devoted to open account sales, or, as here classified. Sundry 
 Debtors, and, with the change in the terms of payment, is to be 
 transferred to the Instalment Ledger. 
 
 Two plans of accomplishing this result present themselves. 
 One is to close the account in Sundry Debtors' Ledger by bal- 
 ance transferred to the new account located in Instalment Ledger. 
 For this purpose the Cash Journal provides the necessary means 
 with its pairs of columns, making the operation one of great sim- 
 plicity, without any danger of derangement in balances or classi- 
 fication. The objection to this plan, however, is that, while in 
 a sense it shows the actual history of the transaction, the account, 
 as opened in the Instalment Ledger, commencing with a balance, 
 does not correspond with the terms of the lease or contract. 
 Therefore it is desirable to pursue the other plan — namely, that 
 of undoing all that was done prior to the signing of the lease — and 
 starting the instalment sale as though it were a new transaction 
 dating with the signing of the lease or contract. 
 
 The first step in this plan is to make out the sale contract or 
 lease in the usual form and allow the transaction to pass in regular 
 course as a contract sale through the books. The original trans- 
 
^ER'S AC- 
 
 nding at the 
 the payment 
 jstamers, are 
 The account 
 of the ledger 
 ified, Sundry 
 lent, is to be 
 
 t themselves, 
 sdger by bal- 
 tnent Ledger. 
 :essary means 
 of great sim- 
 ices or classi- 
 :hat, while in 
 , the account, 
 ith a balance, 
 or contract, 
 -namely, that 
 he lease — and 
 w transaction 
 
 le contract or 
 )ass in regular 
 jriginal trans- 
 
 li 
 
 ws^smm^- 
 
 ACCOUNTING SYSTEM 
 
 801 
 
 action is to be undone or cancelled upon the same general plan as 
 is described in another portion of this volume, where goods re- 
 turned and sales cancelled are discussed. The money that has 
 been paid on the account will go through the form as a refund, so 
 as to get back into the customer's hands, and then, in turn, be 
 paid back to the firm on account of the lease purchase. 
 
 This plan, when considered in its few details, is very simple 
 and has the special advantage of making the records in the books 
 agree in all particulars with the terms of the lease. Where the 
 records of transactions do not agree with the terms of the lease 
 there is more or less confusion in the progress of the account, with 
 the necessity from time to time of referring back to the records of 
 the original transaction which was cancelled. It is better, there- 
 fore, to be to the slight labor of cancelUng and undoing the origi- 
 nal transaction at the outset and starting anew, in accordance 
 with the second agreement, the same as though the first had never 
 occurred, than to have the necessity of reference to the first con- 
 stantly coming up as the account progresses. There is also this 
 further advantage, that by making the transfer upon the plan last 
 suggested the account in the Instalment Ledger and the account 
 as shown in detail by the customer's card will agree in all par- 
 ticulars. 
 
 In establishments doing business of a considerable magnitude 
 it will be found that this change of plan of buying upon the part of 
 customers occurs quite frequently. It is essential to the book- 
 keeper in charge, therefore, to establish the proper rule for mak- 
 ing the transfer at the very beginning and to rigidly enforce the 
 rule in all cases. 
 
 i 
 
GLiARDING AGAINST DUPLICATE RECEIPTS 
 
 '^'.istomers are frequently careless in the matter of their pay 
 cards. They often call at the office to make payments without 
 bringing their cards svirh them, notwithstanding the injuncuon 
 which is nronilnently printed thereon to the efifect that the card 
 must be produced whenever a payment is made. Under such 
 conditions a formal receipt must be given. In turn, customers 
 frequently claim to be too busy to stop to hunt up the -pay card 
 when the collector calls for a payment, and therefore demand a 
 formal receipt for the amount that they pay him. Again, with 
 the inconsistency that is always to be noticed when people of this 
 class are closely scrutinized, the same persons will a little later 
 produce their pay cards, either at the office or when a collector 
 calls, and demand the entry thereon of the amounts which they 
 have paid when the card was not presented. 
 
 The thoughtless collector or clerk, knowing from the ledger 
 or from the duplicate pay card that the amounts referred to have 
 been duly received by the house, might proceed to make the en- 
 tries on the pay card, with the result that thereby the customer 
 would have two receipts for the payments. Some customers are 
 so dishonest as to take advantage of circumstances of this kind 
 and stoutly maintain at the time of the final settlement, frequently 
 long after the transaction occurred, that on a given date two pay- 
 ments of like amount were paid, and in evidence produce the for- 
 mal receipt in one handwriting and the credit on the pay card in 
 another. Still other customers from mere thoughtlessness or by 
 
 C- 
 
ICEIPTS 
 
 of their pay 
 ents without 
 le injunciion 
 ;hat the card 
 
 Under such 
 n, customers 
 the -pay card 
 •re demand a 
 
 Again, with 
 
 people of this 
 
 a little later 
 
 :n a collector 
 
 s which they 
 
 ►m the ledger 
 erred to have 
 make the en- 
 tile customer 
 lustomers are 
 1 of this kind 
 It, frequently 
 late two pay- 
 duce the for- 
 e pay card in 
 essness or by 
 
 ACCOlNTINd HY8TEM 
 
 ft03 
 
 accident make claims of this kind honestly. Irrespective of the 
 motive, the merchant is in position to lose whenever such a claim 
 is made, and therefore there is the necessity of stringent rules in 
 the collection department covering this point. 
 
 Receipts are undoubtedly necessary whenever payments are 
 made at the office without the card, and receipts are also neces- 
 sary where payments are made to collectors and the card is not 
 ])roduced. It is not necessary, however, to make the credit on 
 the card at a later date when it is produced simply because the 
 customer demands it. Entries on the customer's card subse- 
 quent to the time of the payment should be made only as the re- 
 ceipts given when the payments were made are duly surrendered. 
 It is expedient, therefore, to lay down the broad rule that no 
 credits are to be entered upon customers' cards except for money 
 paid in hand, or for a receipt representing a payment made when 
 the card was not at hand duly surrendered. ♦ 
 
 Occasionally a customer loses or misplaces a receipt which 
 has been issued to him, either from the office or by a collector, for 
 an amount naid when the pay card was not at hand. In due 
 course he will ask to have this amount entered upon his card in 
 order to make it correspond with the true condition of the ac- 
 count. Precaution must be exercised in this case, as well as in 
 the others cited, because there is no assurance that the receipt 
 will not be found at some future time. When the entry is made 
 on the customer's card, at his request, there should be entered at 
 the same time a statement to the effect that the credit is made 
 after the date which it bears, and that it is done at customer's 
 request and upon his statement that the formal receipt issued for 
 the same cannot be found. This entry may be abbreviated ac- 
 cording to the usage of the establishment, into something like 
 the following form: — "Cancel receipt for like amount of this 
 date." Where matters of this kind are of frequent occurrence a 
 
 
304 
 
 THE SELF.PROVIN<» 
 
 rub])er stamp would save labor and reduce the matter to regular 
 
 routine. 
 
 Customers are sometimes so unfortunate as to lose their pay 
 cards, in which case, of course, they are entitled to duplicates 
 Great care should be exercised in such cases also in issuing? dupli- 
 cates. In the first place, the precaution to compare with the 
 ledger, in order to make sure that the new card issued corresponds 
 exactly with the ledger account, should be taken. In the ne?ct 
 place, the new card should be marked "DupUcate," or otherwise 
 distinguished in such a way that in case the lost card should be 
 subsequently found no irregularity would arise, either to the loss 
 of the merchant or to the embarrassment of the customer. 
 Where items are entered upon the duplicate pay card for which 
 receipts have been previously given, there should be the reference 
 to the receipt being taken up and cancelled as above described, 
 and in all other respects care should be taken to guard against the 
 loss which might occur if the new card were issued carelessly. 
 
1. 
 
 r to regular 
 
 Dse their pay 
 3 duplicates 
 ssuinj? dupli- 
 ire with the 
 [ corresponds 
 In the ne?ct 
 or otherwise 
 ,rd should be 
 er to the loss 
 le customer, 
 ird for which 
 the reference 
 ive described, 
 :d against the 
 arelessly. 
 
 CARE ABOUT RECEIPTING "IN 
 
 DEMANDS " 
 
 FULL OF ALL 
 
 A word of caution is in order with reference to receipting cus- 
 tomers' accounts in full, without such special investigation it the 
 time as will determine the correctness of the claim that the 
 amount tendered is in full. Customers will sometimes take a col- 
 lector, or even office cashier, ofT guard on matters of this kind. A 
 pay card will be presented on which there is a small balance due, 
 along with the tender of the money, with the request for a receipt 
 in full of all claims to date. If such a receipt is given without 
 prior reference to the ledger for the purpose of determining that 
 this account is the only one with this particular customer, the 
 chances are that a receipt will be given as sweeping as above men- 
 tioned, when, in fact, there is an additional amount due from the 
 customer. 
 
 Cross references should at all times be maintained between 
 the different accounts with the same customer, where the ac- 
 counts are not consolidated, and pay cards should be kept to- 
 gether if it is not expedient to consolidate them. With the great- 
 est care, the opportunity is sometimes presented for a customer 
 to make such a demand as mentioned above, either honestly and by 
 accident, or with intention to defraud. The word of caution, 
 • therefore, is this: — Never receipt a customer's account without 
 first referring to the ledger, in order to determine that the amount 
 tendered is in fact a full payment to date. 
 
LOANS TO CUSTOMERS 
 
 Circumstances frequently arise in the conduct of the instal- 
 ment business wherein it is expedient to advance a small amount 
 of money to a customer. There may be sickness in his far.ily, or 
 he may have lost employment, and from either of these causes 
 mav have become so reduced in resources as to be not only unable 
 to meet his instalment payments when they become due, but also 
 his rent. The landlord, therefore, is about to eject him, or some 
 other creditor is making trouble for him, and for one or the other 
 of these reasons the goods in his possession, the title of which, of 
 course, is in the instalment dealer's name, are in more or less jeop- 
 ardy. Under such circumstances, and others which it is not neces- 
 sary to specify in this connection, the interests of the instalment 
 merchant and those of the customer become altogether mutual. 
 
 It is certainly to the disadvantage of the merchant that the 
 goods should be removed from the house, either because the cus- 
 tomer is obliged to vacate the premises by reason of non-payment 
 of rent, or for any other cause. It would be a considerable loss to 
 the customer to be compelled to make a forced move of this kind. 
 Such an event would interfere materially with his ability to resume 
 payments after the existing season of hard luck had passed by. 
 The customer therefore comes to the merchant and makes a frank 
 statement of the situation. The merchant, in vie\\ of all the cir- 
 cumstances, perceived that it would be to his advantage to ad- 
 vance a small amount of money to his customer for use in paying 
 the rent, and thus appease the landlord and save the removal of the 
 
 L 
 
the instal- 
 lall amount 
 s far.jly, or 
 hese causes 
 only unable 
 ue, but also 
 ini, or some 
 5r the other 
 of which, of 
 or less jeop- 
 s not neces- 
 i instalment 
 ;r mutual, 
 ant that the 
 luse the cus- 
 lon-payment 
 ;rable loss to 
 of this kind, 
 ty to resume 
 d passed by. 
 lakes a frank 
 of all the cir- 
 ntag? to ad- 
 use in paying 
 gmoval of the 
 
 ACCOUNTING SYSTEM 
 
 807 
 
 goods. The question then arises, how should such a transaction 
 be treated in the books of the business? 
 
 Two plans suggest themselves, the first of which is as follows: 
 A special account may be opened with the customer in that por- 
 tion of the ledger designated as Sundry Debtors, which account 
 at the outset would be debited with the amount advanced, and 
 credited from time to time as it is repaid. This plan has favor 
 for the reason that the transaction evidenced by it is entirely out- 
 side of the lease agreement or chattel mortgage, and, being a 
 special matter, ought to have its own separate account. Certain- 
 ly it is not expedient to class the amount that is so advanced with 
 the merchandise purchases of the customer. The effect of the 
 transaction, however managed in the bookkeeping, is to divert 
 payments for the time being, which otherwise would apply to the 
 merchandise account, to the discharge of the loan. The stipula- 
 tion with the customer should be, of course, that when his pay- 
 ments are resumed, they shall first be applied to retiring the loan, 
 and whenever it has been paid off, they 'hall then continue to ap- 
 ply to the ourchaLCs. The merchant may or may not have spe- 
 cial security for the loan thus made to the customer. However 
 that may be, the plan of bookkeeping here suggested leaves the 
 merchandise or instalment account with the customer stationary 
 in amount, until such time as the loan has been repaid. This 
 plan, therefore, is deemed the best for use in view of all the circum- 
 stances. 
 
 The only possible objection to the foregoing plan is one that 
 is sometimes raised by business men and bookkeepers, and which 
 is based upon theoretical consideration rather than upon prac- 
 tical conditions. It is that thereby two accounts would exist 
 with the same customer. For the sake of consistency in this mat- 
 ter they would prefer to have the amount of the loan posted di- 
 rectly to the account of the customer in the Instalment Ledger, so 
 
 -t3 
 
•' ..■ . •miKj'i'f' -. • •■fisi ' t» ' 
 
 806 
 
 THE SELF-PROVING 
 
 S 
 
 that his whole indebtedness would appear in one place. This al- 
 ternative plan is feasible, if it is preferred, but, of course, such spe- 
 cial entries in the debit of the Instalment Ledger would have to he 
 taken into consideration when proving the Ledger with the Sales 
 
 Record. 
 
 If both cash and merchandise items are charged to the ac- 
 count in the Instalment Ledger, then the footings of the Instal- 
 ment Ledger must be separated into two amounts in order to 
 properly compare with the Sales Record. There is the further ob- 
 jection to this plan that it would serve to confuse matters if m 
 case of a dispute at some later date the customer set up the claim 
 that the amounts paid after the date of the loan should have ap- 
 plied on the goods instead of being in repayment of the money 
 borrowed. Upon this contention it might in extreme cases be 
 shown that the goods at a certain date had been entirely paid for, 
 and the terms of the lease or mortgage complied with, while as a 
 fact the customer was still indebted to the merchant for the 
 amount of the loan, for which, under these circumstances, he 
 would have no security whatsoever. By opening separate ac- 
 counts, as first proposed, and allowing each of two distinct trans- 
 actions to stand upon its own footing, the chances of disputes and 
 difficulties of this kind are entirely removed. 
 
 When a special account for money advanced, or for any other 
 item, is opened in the part of the ledger called Sundry Debtors, 
 cross reference should be made between the two accounts. This 
 may be satisfactorily accomplished by a pencilled entry made near 
 the name in each account, recording the volume and page where 
 the other account is to be found. By this plan, whenever one 
 account is examined attention is instantly called to the other. 
 
This al- 
 , such spe- 
 have to he 
 
 I the Sales 
 
 to the ac- 
 the Instal- 
 
 II order to 
 further ob- 
 atters if in 
 3 the claim 
 id have ap- 
 the money 
 le cases be 
 ly paid for, 
 , while as a 
 mt for the 
 stances, he 
 eparate ac- 
 tinct trans- 
 iisputes and 
 
 )r any other 
 ry Debtors, 
 unts. This 
 \r made near 
 page where 
 lienever one 
 le other. 
 
 1 1 
 
 CARTAGE AND STORAGE 
 
 Requests for Cartage and Storage in an instalment business 
 are of almost daily occurrence. Transactions of this kind are 
 frequent, because, in many cases, it is necessary for the merchant 
 to resort to storage practice in order to have in his possession 
 goods which the customer has not fully paid for. For example, 
 the purchaser may desire to discontinue housekeeping for a time, 
 in which case some provision must be made for the care of his 
 furniture and effects. It is much better for the instalment mer- 
 chant to be the custodian of the goods, under the circumstances, 
 than to have them out of his possession. Again cases .arise 
 wherein the purchaser contemplates moving away from the city, 
 and inasmuch as the lease, chattel mortgage or purchase contract 
 under which he has the use of the goods will not permit him to 
 ship them, he is obliged to look for storage in the town where he 
 has been living. Under all such conditions it is better for the 
 instalment dealer to be the storage depository than to have any 
 one else act in that capacity. For these reasons and others it is 
 frequently to the advantage of the merchant to offer the use of 
 his facilities to his customers, and to tender them the use of his 
 warehouse as a storage place upon very reasonable terms. 
 
 Similar conditions prevail in the matter of cartage. It is to 
 the merchant's interest to send his own wagons or trucks for 
 goods that are to be stored, and in many cases to have them used 
 in ordinary removals. Tendering the use of his teams and work- 
 men for all such purposes frequently puts him in a position to 
 know through the reports of his employes just what is going on in 
 directions that concern his interests. 
 
310 
 
 THE SELt-PROVlXa 
 
 Where cartage or storage is supplied in this way it is, of 
 course, something to be charged for. Accordingly, the cartage 
 and storage service of an instalment business, properly conducted, 
 very frequently results in a revenue of some considerable size, if 
 not an actual profit. The manae:ement of the charges in the 
 books is the special point to be considered at this time. Where 
 the cartage and storage is comparatively insignificant in amount 
 it is recommended that the income be treated as a credit to tl.j 
 proper expense account. It is to be regarded as an offset to • ; a 
 diminution of an expense rather than an earning or a rever.je. 
 Even where the items of cartage and storage amount to a consid- 
 erable sum, this plan will be advantageous, and it may be satis- 
 factorily pursued until the cartage and storage transactions reach 
 the magnitude of a separate undertaking, or a well defined depart- 
 ment of the general enterprise. In the latter case Cartage and 
 Storage Account should be given the same rank as a merchandise 
 account. 
 
 Cartage and storage always should be cash transactions. 
 Accordingly, in a business of ordinrry dimensions, there is no need 
 of bookkeeping in this account save only to take cognizance of 
 the cash when it actually comes to hand. The items of charge 
 may be safely kept on a Customer's Storage Memorandum, with 
 a cross reference on the customer's pay card. It is always neces- 
 sary, of course, to know th j amount of the charge for storage at 
 the time of a settlement, but in most cases it is neither necessary 
 nor expedient to go to the trouble of opening an account with the 
 customer for this service, for the special reason that such charges, 
 except only in a warehouse business formally organized and con- 
 ducted, seldom prove a valuable asset to the concern. Instead, 
 the nature of the items is more like that of costs in legal. proceed- 
 ings — something to be adjusted and paid before the claims are 
 released or the goods restored to their normal position. 
 
y it is, of 
 le cartage 
 :onducted, 
 ble size, if 
 ges in the 
 e. Where 
 in amount 
 edit to t!ii 
 f set to • .-a 
 a rever.ae. 
 :o a consid- 
 ay be satis- 
 :tions reach 
 med depart- 
 l^artage and 
 merchandise 
 
 iransactions. 
 re is no need 
 Dgnizance of 
 ns of charge 
 andum, with 
 dways neces- 
 or storage at 
 her necessary 
 ount with the 
 such charges, 
 ized and con- 
 ern. Instead, 
 legal proceed- 
 the claims are 
 ition. 
 
 1 
 
 RECOVERING GOODS 
 
 Under lease or contract sales the merchant has the right to 
 demand the restoration of the goods whenever the customer is in 
 default in his payments. In most cases, in view of the agreement 
 which was signed at the outset, the customer is willing to give up 
 the goods peaceably and without objection. It is greatly to the 
 merchant's interest to get possession of the goods in this way 
 where possible instead of resorting to legal proceedings. In fact, 
 it is best to defer all legal proceedings so long as the merchant is 
 not actively opposed by the customer, and so long as no resistance 
 is offered to his employes by way of preventing them from taking 
 the goods, when it is his right to seize them. 
 
 If the customer locks the door and refuses the truckman ad- 
 mission, or if the customer sits down on the goods and refuses to 
 surrender them, it is expedient to avoid using force and to with- 
 draw from the efiort preparatory to entering upon an entirely dif- 
 ferent line of action. A special reason for this is that under the 
 law, as it is interpreted in many places, any attempt to take the 
 goods against the active opposition of the customer would render 
 the merchant or his employe liable to action for assault and tres- 
 pass. The merchant does not want to be made the defendant in 
 any case. Therefore he must proceed upon such a plan as to keep 
 all the advantages upon his side. 
 
 The most satisfactory way to recover goods from a delin- 
 quent customer when he refuses to yield up possession in a peace- 
 able way is by replevin. The replevin process may not be Uked 
 
 ll 
 

 812 
 
 THE SELF-PROVING 
 
 because it involves some expense, but this should be submitted to, 
 because thereby the merchant has the satisfaction of knowing that 
 he is strictly within the law in all that he is doing, and that he is 
 proceeding in a way to protect himself against any proceedings 
 for damage which the angered customer might see fit to institute. 
 The goods having been sold on stated conditions, and the pay- 
 ments being in default, the right is thereby given the merchant at 
 his discretion to protect his interests by recalling the goods. 
 Where he can get them without legal process and with the per- 
 mission of the customer, it is best so to take them, but, on the 
 other hand, where there is any opposition replevin is the best 
 method to pursue. 
 
nitted to, 
 wing that 
 that he is 
 jceedings 
 institute. 
 
 the pay- 
 Tchant at 
 le goods. 
 I the per- 
 it, on the 
 
 the best 
 
 1 
 
 GOING TO LAW WITH DEBTORS 
 
 There are several points which should be carefully considered 
 by the merchant before deciding upon legal proceedings against 
 the debtor, and particularly before commencing a suit to recover 
 an amount on an open account or for damages done to goods. If 
 the debtor is not worth something — that is, if he is not responsible 
 and in possession of goods or property sufficient to make a judg- 
 ment good in case it is obtained — it is only a waste of money in 
 lawyers' fees and court costs to sue. It is worse than useless to 
 attempt to make a man pay who has nothing in sight that can be 
 reached under execution. 
 
 Before going to law with a debtor it is expedient to become 
 acquainted with his circumstances in fine detail. A debtor may be 
 apparently living very comfortably, and, from a superficial exami- 
 nation, seem to be in a position to pay, or at least to have property 
 which in value is equal to the judgment, if a judgment is obtained. 
 When the actual facts are ascertained, however, it may be shown 
 that all the property that is in sight belongs to his wife, or to some- 
 body else other than himself, and, accordingly, is not liable to 
 seizure. Or all the goods in sight may be covered by a chattel 
 mortgage, or by bill of sale, or by some other conveyance which 
 would secure them against execution. 
 
 Again, judgment summons for debt, as it sometimes occurs, 
 is quite unsatisfactory, for it is very difficult to get a man to give 
 such evidence when up on judgment summons as will cause the 
 Judge to instruct him to pay his creditor a certain amount weekly 
 
314 
 
 THE 8ELF-PR0VIVG 
 
 or monthly, as the case may be. Even when the Judge gives in- 
 structions of this kind, and the debtor fails to comply therewith, 
 and the merchant again brings him to court under judgment sum- 
 mons, which, of course; entails additional cost, the debtor very 
 generally is able to put forth what, from the Judge's point of view, 
 is a very reasonable excuse, with the result that he is released from 
 the first instructions and ordered to pay his creditor a smaller 
 amount monthly or weekly, as the case may be. 
 
 This same process may be repeated again and again, only to 
 weary the merchant and to pile up expense in the way of attorney's 
 fees and court costs. The advice to the merchant, therefore, is 
 not to be too hasty in resorting to legal proceedings. At the out- 
 set take the special precaution of studying the character of the 
 debtor and the extent of his property. Do not divert too much 
 time from the management of your regular business to suits, for 
 often what is lost in the profits of the business that might be done, 
 added to the expenses of legal proceedings, is considerably more 
 than the debt that you are undertaking to collect. 
 
 L 
 
ge gives in- 
 ^ therewith, 
 gment sum- 
 debtor very 
 )int of view, 
 :leased from 
 )r a smaller 
 
 ain, only to 
 )f attorney's 
 therefore, is 
 At the out- 
 acter of the 
 rt too much 
 to suits, for 
 jht be done, 
 erably more 
 
 INTEREST ON OVERDUE ACCOUNTS 
 
 In some branches of the instalment business a considerable 
 revenue is obtained from interest on overdue accounts. Where in- 
 terest charges are made the merchant must bear in mind that such 
 charges are not merchandise, and therefore must not be confused 
 therewith. It would be fatal to the classification scheme so care- 
 fully embodied in the system of accounting shown in this book to 
 have interest charges passed to the credit of merchandise sales. 
 The credits for the amounts charged for interest must go to Inter- 
 est Account and show from time to time in that account separate 
 and distinct from the other representative accounts. Interest and 
 merchandise must be kept distinct from each other, thereby en- 
 abling the merchant, by reference to the accounts, to know how 
 much is derived from each different source of revenue. 
 
 In the Self-Proving Instalment Ledger, as elsewhere ex- 
 plained, it is provided that interest charges and charges for goods 
 shall be posted to the same column. Nevertheless, the credits go 
 to different accounts, and in proving the ledger the footings of 
 these different accounts are taken collectively. 
 
 Where charges for interest are considerable in number and 
 are regularly made it is advised that a regular Interest Record be 
 maintained in which interest charges from time to time shall be 
 entered, the same as sales are entered. This work should be done 
 periodically and systematically in order that the charges spread 
 through the books shall always be in proper order. If a charge for 
 interest is a regular rule on certain accounts, then those accounts 
 
 I . 
 
 li 
 
816 
 
 THE SELF-PROVINO 
 
 
 should be properly designated and the charges for interest should 
 be made to thtni through the interest Record at the close of each 
 month. In this way the business in this regaru will always be kept 
 up to date. 
 
 It sometimes happens that interest is charged in an account 
 and that in the final settlement a compromise in the amount is 
 made. The account is settled for a less sum than the aggregate of 
 what has been charged to it. Entries for concessions of this kind 
 are to be made in the same manner as described elsewhere in this 
 volume, under the head of Allowances. It should always be borne 
 in mind, however, that only that account should be debited for an 
 allowance or deduction which has had the credit for the amount in 
 the first place. It should ever be kept before the bookkeeper that 
 the one object in accounting is to show by the balance in any rep- 
 res( tative account the net results of that account. Hence, if In- 
 terest has been credited in making up the amount in any cus- 
 tomer's account, and there is finally a deduction or an allowance 
 made in settling that account, amounting in fact to an abatement 
 of part or all of the interest, then Interest Account is to be deb- 
 ited. The columns in the Cash Journal provide for all necessary 
 cross entries of this kind whenever it is found difficult to make 
 them elsewhere. 
 
 L 
 
ll 
 
 rest should 
 ose of each 
 lys be kept 
 
 an account 
 amount is 
 jgregate of 
 3f this kind 
 tiere in this 
 ys be borne 
 jited for an 
 : amount in 
 keeper that 
 in any rep- 
 ^ence, if In- 
 n any cus- 
 
 I allowance 
 abatement 
 to be deb- 
 
 II necessary 
 lit to make 
 
 VOUCHERS FOR DISBURSEMENTS. 
 
 It is scarcely necessary to use any argument with the experi- 
 enced business man to support the as -rtion that vouchers for dis- 
 bursements should be obtained in all c< ses an<! properly filed. His 
 interests in every instance are served by laying down the broad and 
 invariable rule that the cashier, bookkeeper, or whoever has 
 charge of disbursements, must have a signed voucher for every 
 cent that is paid out. The form of the voucher itself is of less im- 
 portance than the fact that a voucher is always obtained and pre- 
 served. Bookkeeper^ and cashiers, as a rule, readily acquiesce in 
 this plan hen it is once installed because it results in a protection 
 to them in all cases of disputed accounts and in general causes the 
 business to proceed with less friction than where such a rule is not 
 
 enforced. 
 
 Vouchers should be regularly and systematically filed. They 
 should bear a serial nUmber and for convenience in reference this 
 number should be recorded on the cash book and in every other 
 place where the transaction is referred to in a way to enable all the 
 documents in a case to be instantly available whenever, for any rea- 
 son whatsoever, the history of an account is to be investigated. 
 
 Some voucher forms which i" practice have been found very 
 advantageous to employ are shown herewith. Particular atten- 
 tion is directed to the list of accounts that is printed on the face of 
 the voucher and against one of which a check mark or initial is to 
 be placed by the manager or other directing man to show where 
 the amount is to be charged. In every business enterprise a num- 
 ber of expense accounts are conducted, some of which have names 
 
 ill 
 
uwn»iiW-Ji> »■ 
 
 m 
 
 THE SELF-1'BOVINO 
 
 that do not always remain in mind in a way to be instantly avail- 
 able and correctly written on the voucher when checkm- tt. o 
 save confusion or uncertainty when one of the accounts ... to be 
 desi^Muited the list iu full is print ed on each voucher. H avnig a 
 
 A CONVENIENT FORM OF VOUCHER. 
 
 list Of the accounts before him at the time an amount is approved, 
 the work of the managing man in designating the direction of the 
 charge is reduced to a minimum. All the uncertainty growmg out 
 of a faulty memory as to the correct name of the account is 
 avoided. 
 
■'f ^ 
 
 AMOUNT 
 
 t is approved, 
 rection of the 
 r growing out 
 le account is 
 
 y-^f^siyi^g^^KS^Sr^ 
 
 . ^ ,^ - m,^-iiu.iJnti,mmv- .yi.i; ' .'i-*Min-Ji 
 
 ri'sm^nf'PTrr'0'^SaSS'' 
 
 
^> 
 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 L. 
 
 Sciences 
 Corporation 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) 872-4503 
 
CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICIVIH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques 
 
 ^ 
 
DATING STAMPS 
 
 Every office, sales department, receiving department, and 
 shipping department as well, should be provided with dating 
 stamps. Band daters, neat in general appearance and efficient in 
 work, are of the greatest convenience, and are at the present time 
 obtainable at so small a price that it is poor economy to be without 
 them. Giving each clerk who has anything to do with the records 
 one of these daters, and demanding that every paper that he han- 
 dles shall bear a date, will be found to work greatly to the advan- 
 tage of the business and to be conducive to thorough system. 
 
 Every letter received in the office, as well also as every invoice 
 and memorandum, of whatsoever nature, should be stamped with 
 the date at which it comes to hand. In turn, every shipment, and 
 every receipt of goods, and every delivery, of any kind whatsoever, 
 should be similarly dated. If a stenographer is employed the note- 
 book in which dictations are recorded should be likewise dated 
 from day to day. 
 
 In many cases it is expedient, so far as the immediate work of 
 the office is concerned, to go a step further and employ an auto- 
 matic time stamp, which, in addition to the day, month and year, 
 will also print the hour ?.nd minute. Devices of this kind, although 
 somewhat expensive in first cost, are really economical in view of 
 the great advantages that follow upon their use. 
 
BAD BUYING 
 
 Some of the losses incident to any form of the merchandising 
 business are due to indiscreet buying or to mistakes of judgment 
 in ordering, and the consequent accumulation of what is very gen- 
 erally called bad stock. Bad stock, however, can be handled in 
 the instalment business to better advantage, so far as profit is con- 
 cerned, than in a business conducted upon any other plan. In 
 most branches of the retail trade there is a further loss on stock 
 while on the warehouse floor through wear or damage. All this 
 adds to the accumulation of goods which are not really good 
 
 sellers. 
 
 To get rid of stock of this kind it is necessary to offer the 
 articles at reduced prices. In ordinary retail trade the offers 
 necessarily are made at less than the cost prices; hence all accumu- 
 lations of this kind in an ordinary merchandising business repre- 
 sent a direct loss. The goods, as a rule, cannot be sold at a price 
 that covers even a small profit, for cash buyers are always looking 
 for the very best that they can get for their money, and compe- 
 tition in such instances very frequently causes offers at figures be- 
 low cost. 
 
 In the instalment business, however, with its broader mar- 
 gins, damaged goods and undesirable articles can always be worked 
 off at figures somewhat above cost, for there is always a class of 
 customers willing to take articles of this sort, provided the price 
 quoted is made a little less than that of standard goods or perfect 
 articles of the same kind. Hence it is that the instalment mer- 
 chant has the advantage over the retail merchant operating upon 
 some other plan in disposing of bad stock. He does not need to 
 cut the prices on bad stock to a figure below cost. 
 
merchandising 
 s of judgment 
 at is very gen- 
 be handled in 
 s profit is con- 
 ther plan. In 
 • loss on stock 
 lage. All this 
 )t really good 
 
 ry to oflfer the 
 ade the offers 
 ice all accumu- 
 business repre- 
 sold at a price 
 always looking 
 ;y, and compe- 
 s at figures be- 
 
 s broader mar- 
 ways be worked 
 [ways a class of 
 vided the price 
 ;oods or perfect 
 nstalment mer- 
 operating upon 
 oes not need to 
 
 EXAMINATION OF RECORDS OF CHATTEL 
 
 MORTGAGES 
 
 It is to the advantage of merchants employing the credit 
 svstem to inaugurate a plan of regularly examining the records 
 of the chattel mortgages which are filed from time to time m the 
 registry office of their town or county, as the case may be. It is 
 essential in their interest that they know what is being done m 
 matters of this kind, for occasionally it happens that goods upon 
 which they have a lease are included in chattel mortgages given 
 
 by their customers. 
 
 Various plans by which they can watch the records in this 
 re-ard suggest themselves. In some districts there are local 
 agaicies which undertake for a very reasonable consideration to 
 report from day to day everything of this kind that is put upon 
 record In certain districts also a regular publication is made of 
 all the chattel mortgages filed; and in other cases the merchant 
 finds it advantageous to detail a clerk to visit the registry oftice 
 regulariy for the purpose of obtaining this information. 
 
 Merchants who are in receipt of timely information of this 
 kind concerning matters affecting their interests have ample 
 remedies in hand, because, of course, they can claim the goods, 
 the title to which is theirs, or goods upon which they have a prior 
 claim upon any basis, whenever and wherever they find them. In 
 order to protect their interests, it is necessary for merchants who 
 are proceeding upon the plan of lien or contract sales to be con- 
 stantly alert in matters of this kind; hence the advisability of some 
 plan of regularly and systematically watching the records of chat- 
 tel mortgages. 
 
 [ . 
 I -'I 
 
 'I 
 
DETECTIVE WORK 
 
 In a business spread over as much territory and transacted 
 with as many individuals as is usually the case with instalment 
 bouses, a certain amount of detective work is a necessity m 
 order to avoid excessive losses. There are some people m the 
 world who are kept honest by the very fear of being detected in 
 wrong doing; and there are others who are deterred from deviat- 
 ing from the path of rectitude by the lack of opportumty to do 
 wrong, or the knowledge that they are being more or less watched. 
 The advantages, therefore, to the instalment house of a detective 
 branch, or the employment of men specially skilled in detective 
 work is not to be measured alone by that which is shown to be 
 the direct results of their effort, but is also tobe estimated m the 
 light of the moral'influence which the knowledge of such facihties 
 exerts over trade at large. Credit dealers, as a rule, are loath to 
 resort to detective methods until they have been more or less im- 
 posed upon by those who are dishonest. Then, recognizing the 
 frailties of human nature, they resort to the only method that is 
 left them in order to protect their interests so far as possible. 
 
 There are various ways in which detectives may be advan- 
 tageously employed in the instalment business. Just what plan 
 to pursue is to be determined largely by the nature of the business 
 conducted, the location of the trade, whether in a large city or in 
 a suburban town, and also by the character of the individua cus- 
 tomers The detective may be a bright clerk of the establish- 
 ment, who has quahfications in this direction, or he may be some 
 
id transacted 
 
 th instalment 
 
 necessity in 
 
 people in the 
 
 g detected in 
 
 1 from deviat- 
 
 >rtunity to do 
 
 • less watched. 
 
 of a detective 
 
 d in detective 
 
 5 shown to be 
 
 timated in the 
 
 i such facilities 
 
 e, are loath to 
 
 ore or less im- 
 
 jcognizing the 
 
 nethod that is 
 
 s possible. 
 
 nay be advan- 
 
 [ust what plan 
 
 of the business 
 
 large city or in 
 
 individual cus- 
 
 the establish- 
 
 e may be some 
 
 ACCOfNTING SYSTEM 
 
 :)28 
 
 one who is specially employed for the purpose, this latter plan 
 having the advantage of putting into the work a person with 
 whom the delinquent customer is not ac(|uainte(l, or one whom 
 he would not recognize on sight. In extreme cases a public de- 
 tective agency may be advantageously employed. 
 
 More or less of the qualities of detectives are re(|uired by suc- 
 cessful collectors. They are the representatives of the establish- 
 ment who come in daily contact with the customers, and they are 
 the first to have their suspicions aroused that all is not straight in 
 certain directions. A little detective ability, therefore, upon the 
 part of the collector is a qualification of no small importance and 
 is very generally appreciated by the merchant. Judicious incjuir- 
 ies of neighbors, of the grocer and of the butcher as to the stand- 
 ing and business history of the customer will very frequently put 
 the collector on the track of more direct information, to be ob- 
 tained through channels which will suggest themselves to liim, 
 which is of the utmost importance to the concern. 
 
 In some of the large cities there are people wlio make it a 
 business to impose upon instalment or credit houses, and where a 
 business is conducted in a way to attract the attention of these 
 people, detectives, tracers, or trackers of furniture, as they are 
 sometimes called, are a necessity. They are men who give their 
 whole time to looking for people who have disappeared with fur- 
 niture or other articles bought on time and which have not been 
 settled for. One of the necessary qualifications of the successful 
 tracer is that he shall be a jolly, whole-souled fellow, and one that 
 the people of whom he seeks to obtain information will not in the 
 least suspect as being a detective. A moody, overbearing and 
 testy sort of man is seldom successful in this capacity. 
 
 A large concern in New York employs a number of men in 
 this capacity, and a brief account of the work which they do will 
 give the reader a proper conception of the usefulness of such a 
 
 -■! 
 
gjj^ THE SELF-PUOVlNa 
 
 department under the conditions controlling his business. In 
 the establishment referred to it is the rule that every person who 
 comes to buy furn.ture shall hirnish references. Further, the 
 house insists upon knowing that the customer is regularly em- 
 ployed in some legitimate business. Nevertheless, factitious ref- 
 erences and collusion in various directions sometimes deceive the 
 sellers in a way to put them to the necessity of tracing the goods 
 which have left their store. 
 
 People who make a business of defrauding furniture houses 
 go at the work somewhat systematically. Women are detailed 
 to make the bargains, while the men take charge of the stuf=f as 
 soon as it leaves the store and manage the disposition of it. Some- 
 times the gang of operators includes auctioneers who operate in 
 collusion with them, and sales before seven o'clock in the morning, 
 although illegal, are not unusual. From this it will be seen that 
 the crooks are as much in the furniture business as the merchants. 
 One sign by which the operations of people of this kind may be 
 detected is the reckless way in which they buy. Nothing is too 
 good for the purpose, and prices are no object. 
 
 The house above referred to depends upon indications of this 
 kind for evidence that the purchase either is in good faith or the 
 opposite. If very little attention is paid to prices and there is a 
 disregard of conditions in taking the goods, suspicions are aroused^ 
 On the other hand, if careful attention is given to the selection and 
 there is evident care for the amount of the bill and due reference 
 to the payments that are to be made, the indications are that the 
 purchase is genuine and that the customer intends to do right. 
 
 After the goods are out of the store and some irregularity in 
 the account occurs that convinces the management that some- 
 thing is wrong, the tracers or detectives are called in .for such 
 assistance as they can render. Experience has shown that there 
 are three classes of accounts to be investigated under conditions 
 
'1 
 
 ACCOUNTINQ SYSTEM 
 
 3^5 
 
 isiness. In 
 person who 
 "urtlier, the 
 gularly em- 
 ictitious ref- 
 , deceive the 
 ig the goods 
 
 liture houses 
 
 are detailed 
 
 i the stuff as 
 
 1 of it. Souie- 
 
 K) operate in 
 
 the morning, 
 
 1 be seen that 
 
 he merchants. 
 
 kind may be 
 
 lothing is too 
 
 cations of this 
 )d faith or the 
 
 and there is a 
 ns are aroused, 
 e selection and 
 1 due reference 
 ns are that the 
 
 to do right. 
 ; irregularity in 
 ent that some- 
 led in for such 
 lown that there 
 nder conditions 
 
 of this character. The first and most important includes the ac- 
 counts of the crook class, to which reference has already been 
 made. Next there are the accounts of the really honest but ap- 
 parently dishonest customers, who move and fail to report their 
 change of address. And last there are the accounts of a class of 
 people who buy furniture and walk off. leaving it behind them. 
 
 In the instalment house to which we have referred, it is the 
 rule to divide the city into several districts and to have a tracer for 
 each district so that he may become familiar with his own par- 
 ticular territory. If a customer moves from one district to an- 
 other, the records are transferred from one tracer to another, and 
 the work continues. It is not the rule to dog customers about 
 their payments in a way to get them out of patience, but. never- 
 theless, they are quietly watched so that it is impossible for them 
 
 to get away. 
 
 Summed up, it is the experience of this establishment and 
 others that, as a fact, very few people who buy furniture on the in- 
 stalment plan are intentionally dishonest. They are more fre- 
 quently ignorant, and this ignorance leads them into methods 
 which are in appearance iriegular, if not dishonest. When the 
 matter is traced down and all the facts discovered, the element 
 of actual dishonesty is found in almost all cases to be lacking, and 
 proper treatment upon the part of th bouse represented by the^ 
 * tracer or detective soon brings the cv tomer into good habits* 
 again, and finally the account is closed in a satisfactory manner. 
 
 The work of a tracer is by no means confined to the city in 
 which the goods are sold. For instance, in the case of the New 
 York house referred to, they sometimes find their furniture down 
 on Staten Island, and is known to be well scattered through New 
 Jersey, and other lots are out in the towns of Long Island, to say 
 nothing of the quantities that are in the annexed district and 
 north of the city. Not long since a tracer of the house found a 
 
I 
 
 THE SELF-PHOVINfl 
 32« 
 
 ,„. „, ,„oas, on w.ic„ a ...... paynjent „.. .,ce,, .na-.e >. . e 
 
 ,™«h. depo. of .he Pe„nsy.va,„u la roa. J J ^,_^ ^^. 
 
 PhJiarlelnhia This shipment, howevei , did not gei i^^> 
 Fnnaaeipnia. ii'^ i , liiiJiiriplnhia was on 
 
 „.,i,l nht-iin it Furniture lielonRnig to tnis con 
 tlic consignee could obtatn .t. ^^_^|^^^_^ 
 
 oern has also gone as tar as some of the cities 
 
 S." es nd the customers, on being followed up, have paid in fu h 
 
 .t:':sta„ces are on record where goods '»- - « 
 across the ocean, which transactions are referred o only as show 
 
 r:.„at the credit merchant is obliged to guard against. 
 
 -me crooks, of course, are the hardest lot to deal with. They 
 
 are cl^stlntly up to new tricUs. and "H-''-- --— 
 that he has learned everything that can be done in a * hones^ 
 way some new game is started. A very common plan in New 
 vXk Ported to by people of this class, is ^0^^^!^ 
 and, arranging for proper references, secure a -«^ "' ;^^. 
 
 instalment dealer and -^-e '' ~ ;^ ^ZZ .0 Keep the 
 
 r:r;:rnt,''::tr::;r;:e.:„dthens.ipo„twiththe 
 
 •rn-r ber:hem. and this - P-ace .^^^^^^^^^^ 
 
 :xr/o:r::r:r.:dor^^^^^^^^ 
 
 -"" '- ;;t\::=freyr r rre:tusiness fr„m the 
 :;Xin";:i:Tetective^or,urni.ure.™^^^ 
 
 rr;r::;rrrort:rt:^^^^^^^^^^^^^ 
 
 in his trade. 
 
rm-^1^ 
 
 ade, in the 
 unsigned to 
 jTond the re- 
 phia was on 
 liture before 
 to this con- 
 ic Southern 
 ; paid in full, 
 icen shipped 
 inly as show- 
 ;ainst. 
 
 [with. They 
 lant supposes 
 1 a dishonest 
 plan in New 
 , room or flat, 
 stuff from the 
 3rt time after- 
 e to keep the 
 p out with the 
 
 in this way and 
 xy, leaving the 
 ne or two pay-* 
 1 cases there is 
 ,ods back, for it 
 r these circum- 
 siness from the 
 serve to suggest 
 trade, .what it is 
 itions that exist 
 
 WRITING OFF BAD DEBTS 
 
 A mistake that many tnercliaiiis make is that of allowing 
 accounts to remain in their ledgers whkh. to their certain knowl- 
 edge, are uncollectable and worthless. By neglecting to write 
 them off whenever they are shown to be bad, they keep in their 
 assets a fictitious amount, and thereby frequently deceive them- 
 selves into believing that they are worth more money than they 
 really are. It is expedient, therefore, on the score of good busi- 
 ness management, to take out from among the live accounts of a 
 business every account that appears to be bad just as soon as its 
 character is determined. It is better to occasionally remove from 
 the books of the business by this plan an account that is really 
 collectable than to allow a single bad account to remain. 
 
 This advice is by no means to be construed to justify a mer- 
 chant in ceasing to follow up his debtors simply because an ac- 
 count has become bad or doubtful. Instead it means only the 
 removal from the live accounts of the business of all accounts 
 which are doubtful, leaving in the regular books only those which 
 are in healthy motion and which are to be depended upon. 
 
 Many merchants are deterred from taking the regular 
 ledgers those accounts which are bad and doubtful, because no 
 adequate means is provided for looking after them after they 
 have been taken away from among the live accounts. This, how- 
 ever, is not the case with those who make use of the facilities pro- 
 vided in the Self-Proving Accounting System. The Self-Prov- 
 ing Suspended List, which is elsewhere described and illustrated 
 
 
H 
 
 si 
 
 .,.,„ THE HELF-PH<)V1N«J 
 
 in this volume, exactly meets the requirements. I^a.l and doul.t- 
 ful accounts recorded in it can l.e just as successfully scrutim/ed 
 and followc<l up as thou^di they had been left in the mam ledger 
 of the establishment. 
 
 The remarks here made with reference to accounts in general 
 apply as well specifically to Instalment Accounts. In Sundry 
 Credits column in the Instalment Ledger there is provision for 
 taking out all bad accounts. The Instalment Ledger, therefore, 
 should be relieved of all bad accounts as fast as they are discov- 
 ered and the Suspended List, in turn, should be arranged to re- 
 ceive them, and thereafter they should be managed through the 
 new book. 
 
I and (loul)t- 
 
 y scrutinized 
 
 main ledger 
 
 its in general 
 In Sundry 
 provision for 
 er, therefore, 
 J are discov- 
 ranged to re- 
 1 through the 
 
X 
 
 
 \ 
 
.:5^»l:-!W.<!ig ' - ' t-"--'g- ' ' 
 
 i^m^mmiffMf