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ORR, PRINCIPAL OF THt; MERCANTILE ACADEMY, AUTHOR OF "THE MOST COMPLETE SYSTEM OF COMMERCIAL AND LADIES' WRITING," AND AUDITOR OF THE CORPORATION OF THE CITY OF TORONTO, ONT. -*^*~ Authorized by the Council of Public Instruction for the use of Schools In the Province of Ontario. -<*o»o- PUBLISHED BY A. DREDGE ft CO., 53 Yonge Street, Toronto. 1873. 07 \%1 3 l\ m ^ LV Entered according to Act of the Parliament of Canada, in tlio year ouo lliousand eight hundred and sixty-eight, by Wiluiam R. Orr, in the Office of the Miui&ter of Agriculture. PKEFAOE. 1 eight ulture. After twenty-six years' experience as a Practical Accountant and Teacher, I have ventured to introduce to the favorable consideration of the Canadian public " The Dominion Accountant," or " New method of teaching the Irish National Book-keeping." A thorough examination of all the larger, and even smaller standard works on book-keeping, within my reach, led me to the conclusion, many years ago, that the Irish National was the best fitted for the school-room as a text-book ; and my varied and extensive practice since, both as a book-keeper and a teacher of the science, has served to convince me that that conclusion was a just one. In the plan, it is more progressive than any book on the subject with which I have met. It begins at the beginning, and proceeds by regular gradations until it reaches the highest order and most intricate description of accounts. The first set teaches, in a few Cash transactions, simply how to Debit and Credit, that is, on which side to enter the Cash received, and on which that paid out, without any regard to ulterior results ; in fact, how to keep a Cash Account. The second set has a Cash Account like the first, and in addition introduces Personal Accounts, by which means the pupil is instructed how to make the Contra entries in the corresponding accounts, viz., to Debit the Cash Account ' with the money received, and Credit the person's account from whom it was received, and vice versa. The transactions are so arranged that the three Personal Accounts in this set, with two or three entries on the Debit and Credit side of each, serve the purpose of as many hundreds or thousands of such accounts ; because all the results that can possibly arise in the management of personal accounts, are produced. At the winding up of the s°t it is found that one of the pevsons is indebted to me, that I am indebted to another, and that, in the case of the third, the Debit and Credit sides are alike ; nei'^her of us, therefore, owes each other anything — all that could possibly be learned, respecting the results of personal accounts, from a book of a thcusand folios. And^ both sets are so short that they can be thoroughly mastered, the first in one evening, and the second in two at most, thus laying the foundation of a practical knowledge of book-keeping in a few hours. In like manner the other sets proceed, each set becoming more and more difficult as the pupil progresses, until a complete knowledge is obtained of the most difficult entries connected with any commercial transaction. Such, however, is not the mode adopted by authors generally. The pupil is put to work to write out, at first, a complete set of books, containing many pages of transactions, all of which he cannot possibly remember, and of whose tv PRfc.l'ACl!,. nature and bearing he can know but little, if anything. Add to this the difficul- ties of opening and closing a set of books, and he has a task set him too difficult to surmount, and which even persons with some practical experience might fail to satisfactorily accomplish ; but yet it is supposed not too great an undertaking for the raw student and the unpractised Dominie to perform. And with what results? Simply the production of a bad copy of the author before them — nothing more. ' The nine sets, in the present small work, are not only short, but every entry is designed to produce certain results, and these results are as varied as the fluc- tuations of commercial life. In closing the second set, it will be found there is neither gain nor loss — the merchant ends as he began ; but his property is some- what diffisren^ly situated, and this the pupil should be made clearly to understand. In the third and fourth sets there is a gain, and the fifth ends in a loss. The sixth and seventh* sets, which contain the most varied, practical and difficult entries to be met with in any work on the subject, both result in a gain. Inten- tional mistakes are made in the sixth set, such as Charging merchandise to the wrong person, and Crediting the wrong person for payments made, for the pur- pose of teaching the pupil how to rectify them. Great advantages accrue to the learner from the shortness of the sets, as well as from the comparatively large number of them. Their brevity enables the pupil to carry all the transactions in his memory from the first to the last ; and their number not only gives great variety, as regards the nature and position of the merchant's property at the opening and closing of each set, but also much practice in opening and closing the books, a thorough knowledge of which is so indispensable, that, without it, all the other information that can be acquired on the subject is comparatively ^ valueless. The "Irish National Book-keeping," in its original form, is in sterling money and British weights. I have substituted for them the decimal currency and weights. It contains eight sets of books ; I have rejected the last set, called the " Farming Set," because I consider all specialties in book-keeping a waste of the pupil's time, and likely to impress the mind with a wrong idea, viz., that a special business requires special principles of book-keeping, whereas, the truth is, the principles of book-keeping need only a special application to the peculiar business, t I have therefore retained only seven of the original sets in the present work ; but I have added to these ^t fifth and sixth sets in a varied fovm, for the purpose, in the first place, of showing the advantages of " Single Entry," by changing the fifth set— Double Entry — into Single ; and in doing this, I have introduced an Expense Account, and retained, in a modified form, the Profit and * The eighth set in the present worlt. t The books which proclaim too many methods of boolc-lceepintr, as well as those who profess to teach them, are alike untrustworthy. In every possible variety of book-keeping the principles are identical. When, in advertisements relative to this jubject, we find teachers profes.'jiiig to embrace, in their course of instructions, all knowledge on all matters relating to every possible variety of commercial pui suits— Book-keep-tnjr, Bank-in^, Rallroad-iwflr, Steam- boat-inn, Telegraph-uu/, and even Debat mi;, (without SPBLiriMQ and Rbas-ino), until the mo«t astounding climax of inos is reached that ever fell under the eye, or upon the ekr of mortal man ! Oh, save us from these everlMt-injjr ingt. PREFACH-. " by hose who eping the " teachers ilating to g, Steam- the most ot mortal Loss Account,* as in the Double Entry method ; and have produced results, in closing the set, equally as satisfactory by the Single, as by the Double Entry system, and with a great deal less work. In the second place, as all the s s in the original work are journalized entry by entry, and day by day (a good meihod for the learner), I have given the sixth set in the collected form, according to the most approved practice of the best Mercantile Houses both in the Old Country and in the New Dominion. By pursuing this plan in the class-room, I have enabled many young men in Toronto, in thirty or forty hours' instruction, who were totally ignorant of book-keeping at the commencement of these lessons, to take charge of, and keep the books of some of the largest and best managed Wholesale Houses in the Province — proof sufficient of the practical merits of the " Dominion Accountant." I have not altered t}ie text or interfered with the questions at the end of the sets ; but I have appended notes where the text seemed to require it, and trust these will be found instructive and useful. I have also prefixed the questions and answers on the principles and practice of book-keeping, used in my lectures to my own students ; these the pupil should learn thoroughly before commencing to write out the books, and they should be rehearsed as often afterwards as the teacher can make it convenient — say once a-week. In the " Compendium of Merchants' Accounts" will be found Rules showing how to Debit and Credit every description of Entry that can possibly occur in any department of the Commercial circle. I have not multiplied Books of Form, for the obvious reason that every mercantile house has its own peculiar forms ; and to the man who understands the principles of the science, forms are of but little account. I have, however, given in an appendix a few forms of Notes, Bills, etc. Also some Arithmetical Rules, especially applicable to commercial pursuits — the one for Equating Pay- ments, or averaging notes ; those for converting Sterling Money into Halifax and Decimal Currency and vice versa ; and those on Exchange, with the form and manner of working the interest on an Account Current ; the Abbreviations, Signs and Explanations of Commercial Terms, etc., will, I doubt not, prove acceptable to the mercantile community. Accountants, engaged in any business whatever, will find this treatise very valuable as a book of reference. It is so arranged that, at any point in their ^ progress, they can find an exact counterpart, and, by turning to it, may at once verify their work. Having thus endeavored to explain the contents and practical bearing of the " Dominion Accountant," I leave its fate to the decision of that public from whom I have already received so many tokens of favorable consideration and regard. Toronto, ist June, 1868. WM. R. ORR. * It Is most remarkable that a Profit and Loss Account is not to be found in any pub- lished Single Entry Set of Book-keeping I have seen. See note, page 173, fifth set, Single Entry. 4 PUBLISHERS' PREFACE FOR SECOND EDITION. The " Dominion Acconntant" has stood the test of criticism better than any other work on Book-keeping that has either been published in Canada or imported into it. As its real merits become more widely known as a text-book for Schools and Collies, as well as a trusty companion to the actual Accountant, its diffusion will spread more generally, year by year, until it has superseded — as it ought to do — every book of the kind extant ; because it is more practical and more etisily jnderstood than any other. Its triumphs already have been very great Many of the best Accountants in the Dominion have received their instructions from it, under the Author, Mr. W. R. Orr, of the Mercantile Academy, Toronto. It has been adopted by the Board of Public Instruction of Ontario, for use in all the Schools ; and what is perhaps, of greater significance, is that it has been adopted by the Bureau of Public Instruction of the City of New York, for the use of the Schools of that commercial metropolis : and last, though not least, it has become the only text-book on this subject used in Upper Canada College. Every typographical error in the First Edition has been corrected by the Author. A few alterations have been made by him in the text, to make it in full harmony with his General Questions, at the beginning ,of the wsrk ; and the Author's Arithmetical Rule has been appended, to determine the Amount of Goods on hand at the time of a fire, to the other invaluable Commercial Arith- metical Rules. In this Edition will be found the Critiques of the Press all over Canada, from Halifax to Sarnia, and of some of the best business men in the Dominion. To insure the most correct mode of studying for one's self, or of teaching most successfully the Dominion Accountant, the Author's Copyright Blanks should be used, which are also published by us. , A. DREDGE & CO. Toronto, November, 1873. CONTENTS. Prbfacb Fie iii General Questions. — Containing Definitions, Principles, Rules and Ex- amples, wherein the use of all the Books, and the various kinds of accounts are explained agreeably to the strict Mathematical nature of the science, and the best and most modem practice, as well as the mode of proceeding with the work in every particular, from the first Entry in opening a set of books until they are balanced or closed ; and the principles of Double and Single Entry discussed . ix First Set. — Containing a Cash Account only . Second " " " and Personal Accounts Third " Fourth" (C '* " another Real Account a General Goods Account . Fifth " " Examples of Personal Accounts — Exhibiting Cash and Credit transactions in addition to real accounts I II 22 38 49 Sixth Set. — Containing Examples of Real Accounts, sub-divided into various kinds of Goods. Also, transactions by Bills, with the Interest, Discount, etc., in which each Entry is separately Jour- nalized 66 Seventh Set. — In which the transactions are Journalized collectedly, according to the usage of the best wholesale houses, with Cash Book, Bills Receivable and Payable Books, and Day Book ; made "> up from the transactions of the Waste Book of the Sixth Set . . no Eighth Set. — Consisting of Single and Joint Consignments, Adventures, Factorships, Partnerships, etc. ; comprising, in a narrow compass, the chief difficulties in Book-keeping 135 Ninth Set. — In which the Single Entry method is illustrated by changing the Fifth Set Double Entry into Single 167 VIU CONTENTS. Pam Subsidiary Books. — Containing Examples of a book of House Expenses, and Cash Book, with explanations of these, as well as explanations of the nature and use of Invoice Books, Sales Book, Bills Receiv- able and Payable Books, etc., etc 175 Gemeral Observations 183 Compendium of Merchants' Accounts.— Containing Particular Rules for the true stating of Debtor and Creditor in all cases that can happen in the whole course of a Merchant's dealings . . .186 Appendix. — Containing Arithmetical Rules, Forms of Bills, etc.. Examples of Equation of Payments' or Averaging Notes, and the Converting of Sterling Money into Halifax and Decimal Currency, and vite versa ; Exchange, Account Current, Abbreviations, Signs and !&cplanations of Commercial Terms or Elxpressioos . . . 209 •» ■ t mTRODUOTIOK. G-ENERAL QUESTIONS,* ON THE THEORY AND PRACTICE OF BOOK-KEEPING. The Cyeot of Book-keeping. 1. What is the object of Book-keeping? To enable me to know at any time how my property is situated. 2. Explain this. In business my property is continually undergoing changes ; and a know- ledge of Book-keeping enables me to trace my property through all these changes, and determine where, and how it is situated. 3. Give an example. If I buy goods and pay cash, the Merchandise Account is increased and the Cash Account decreased, and vice versa. In like manner every transaction, whether I buy and sell for cash or on credit, affects my property, and changes it both in kind and position. Book-keeping, and the Methoda 4. What then is Book-keeping ? It is simply a noting of the changes which occur in i*./ property, or a sys- tematic record of my business transactions. 5. How many methods of Book-keeping are theii ? Two — Single and Double Entry. 6. Explain Single Entry. ^ By this method I make only one entry of each transaction, in the Ledger. 7. Illustrate this. < If I sell goods to A. B. on credit, I open an account for him in the Ledger, and debit his account To Merchandise, without making the contra entry. * Particular Questions and Directions, the original ones, will be found in connection with each set in the body of the book ; I have, nevertneless, thought these General Questiona o2 sufficient importance to place them at the beginning; of the woric, that the pupil mi^ht study them thoroughly before commencing to write out the Books. I may add, that many of tbesa questions, answers and explanations are not to be found in the original work, nor in any other treatise on Book-keeping that I know of. They are the product of my own experieno' quarter of a century's extensive practice as a Book-keeper and an Auditor of Accounts. INTRODUCTIO^. ] [■ 8. What is Double Entry ? It requires, at least, two entries in the Ledger for each transaction. 9. Illustrate this also. If, as in the -case above, I sell goods to A. B., I not only debit his account To Merchandise, but I also maice the corresponding entry, and credit the Mer- chandise Account by A. B.'s.* 10. What then seems to be the real difference between the Single and Double Entry methods ? By the first method I open, in the Ledger, only the Nominal and Personal Accounts; whereas, by the latter, I open the tAree kinds of accounts, viz., thf Real, the Personal, and the Nominal. (See Q. 29.) 11. Do you wish to make it appear that the opening, or not opening, of the Real Accounts in the Ledger, constitutes the princi- pal difference between the two systems ? I do. , If I have not the Real Accounts in the Ledger, I can make but ont entry of the transaction in it ; but if I open the Real Accounts, I must, of neces- sity, make tvw) entries — a Debit and a Credit. (See Q. g.) THE PRINCIPAL BOOKS. 12. What are the Principal Books? *' The Day Book, Journal and LMger. ., 13. Explain the use of each. In the Day Book — I enter the transactions of the day at length, and in order, as they occur. In the Journal are collected, at fixed periods of time, all the trans- actions from all the other Books, under their proper Debits and Credits. And in the Ledger, they are arranged under their respective Headings or Titles. 14. What is the infallible rule for Debiting and Crediting ? Debit In, Credit Out — /. e., the thing received is debtor to the thingt given, or to the persont from whom it is received, t * The proper wording of an Entrjr— or what should be written in an account in the Ledger, haa not always been clearly defined. The wording of every entry in every account in the Ledger ahould be the heading or title of another, and nothing more. If I make the Merchandise Ac- couni Debtor to Cash, t. «., to the Cash Account, I must credit the Cash Account By Merchan- dise, i. «., the Moi'chandise Account. Accounts are not debited and credited to or bj/ things, yi*. : Catin, Goods, etc., or persons, but by the accounts whose headings represent these things or per&ons. By this simple method I am enabled, when I look at an entry in one account, to t-^i intfantly to what other account tlie amount has been (or should be) placed, and to which side of It ; and I know, Just as well as if I had been present during the sale or purchase, wha* changes took place in my property to cause such entry. t Remember it is the AcevutU which represents the thing or person that is debited 01 endKed, and not the thing or person individually. t Thr. and a Cr. side; all moneys received are entered on the Dr. side, and all paid out on the Cr. side. By this means I am enabled to keep my Cash transactions in a collected form, and to detect at any time any discrepancy that may occur between the entries in the Cash Book, and the actual cash on hand. 2nd. The Bill Books. — These books are ruled with columns to suit the Headings (see Bill Books, Sixth Set), and contain the record of my Bills Receiv- able and Payable, in order of Date, etc., and by referring to the columns headed "When Due" and "When Payable," I can ascertain, in a moment, on what day any particular Bill falls Due or becomes Payable. Much valuable time is thus saved to the merchant. 3rd. Invoice Books — In these books are entered, in detail, the Invoices, i. e. the Accounts of all goods received or sent out by me. They are of great utility as books of reference to determine quantity, quality and price. It is not neces- sary to enter the details in the Day Book or Journal, — the totals are sufficient — with reference to No. of Invoice. 4th. Warehouse Book. — For this book no particular form needs be pre- scribed, as its form must necessarily be as varied as are the products of Commerce itself. In it is entered the number of packages or the quantity of goods received into, or taken out of the warehouse ; and it is a check upon the purchases and sales. The prices of the goods may or may not be entered in this book ; but if entered, they will be found very serviceable at the time of taking stock. 5th. Sales Book. — This, like the Warehouse Book, must be accommodated in form to the peculiurities of the business in which it is used. It is generally kept by Wholesale Merchants, and of necessity by Commission Merchants, and is designed to show the particulars of the sales, the number, weight, or measure, and the price of the articles sold, together with all charges to which they are liable. It is sufficient to carry the totals to the Day Book or Journal. 18. Have you named all the Subsidiary Books ? No ; there are others ; but those above mentioned have a direct connexion with the keeping of the principal books. !,! m INTRODUCTION. 19. Can you tell me anything of a little book which should be used by every one who keeps a Cash Account, but not described by any author you have read ? ' A Bank Pass Book, in which to enter the amounts deposited in the Bank and withdrawn from it. 20. Although you havA correctly described a Bank Pass Book, do you consider the answei given a correct one, especially when you reflect that in the question asked there was nothing said about Bank- ing ; I spoke only of keeping a Cash Account ? The answer was ift'elevant ; I should have said a Cash Balance Memorandum Book. 21. Explain the use and importance of this much neglected little book. Every time the Cash Account in the Cash Book is Closed or Balanced — say every day, week, fortnight, or month, as the case may be, I should enter in this book the Balance of Cash on hand, as per Cash Book ; and then, every day, before leaving the office, I should, by adding up the Dr. side of the Cash Book, asv. .^rtain the amount received during the day, and add it to the balance entered in iLc Cash Balance Book. I should then add up the Cr. side to ascertain the amount paid out, and deduct it from the sum already found ; this difference will agree with the amount of the cash on hand, (which is found by counting it) if the Cash Book has been correctly kept, and be again the balance for the next day. As the Cash on hand is the only certain check upon the entries in the Cash Book, the importance of this practice must be obvious ; and as some such method as the above is absolutely necessary in keeping a Cash Account, no one should be entrusted with its management who is ignorant of the principle involved in tlus simple method of testing the correctness of the Cash Account, or too negligent or too apathetic to rigorously apply it.* TRANSFERRING!- THE ENTRIES 22. Now, that you have described the Books, how do you pro- ceed to transfer the entries from the one to the other ? In every case, the page or folio of the book from which the entry is taken should be written opposite the entry in the book to which it is taken ; and the page or folio of the book, into which it has been transferred, should be placed opposite the entry in the book from which it was taken. Thus making a com- plete reference, forwards and backwards, to each entiy throughout the books. * If employers would slve their attention to tliis matter, and see to its being enforced, some of the temptation, at least, would be removed out of the way of those in charge of oath. I know, from experience, that Uie Cash Account is too frequently balanced by the dtflerence betweea the two sides, without ascertaining that this difference agrees with the Cash on hand. Which is the Balanee. No practice is more reprehensible than this, or so hkolj to lead to disastrous results. INTRODUCTION. ki in the Bank THE TRIAL BALANCE. 23. What steps do you take to insure the correctness of the transfer ? When I have transferred the entries, usually at stated periods, from one book to another, as above described, I turn back to the beginning and compare the entries thus transferred, one by one, and item by item, with the original ones, placing the check mark ( 4/) opposite the amounts in both the books, till all are thus marked and found correct. Correct checking, both as regards names and amounts, is of the utmost importance. 24. When all the entries have been carried in this way to their respective accounts in the Ledger, and carefully checked, what other precaution is taken to prove that the Ledger has been correctly posted? - , A Trial Balance is made out. 25. What is a Trial Balance ? The Trial Balance Sheet or Book has Dr. and Cr. columns* similar to a Ledger folio. I now proceed to add up, in pencil, all the accounts in the Ledger, placing the sum of the amounts of the Dr. side of each account in the Dr. columns of the Balance Sheet, and the sum of the amounts of the Cr. side in the Cr. columns of the Sheet. I then add up the amounts thus collected in the Dr. and Cr. columns of the Balance Sheet, to ascertain if they be equal, as they ought to be, if the Ledger has been correctly posted. That these totals should be equal, is manifest from the principle of Double Entry, viz : That every Dr. has a Cr., and every Cr. a Dr., i. e., an equal amount placed to the opposite sides of the corresponding accounts ; consequently the sum of all the Debits must equal the sum of all the Credits. 26. Is the Trial Balance, then, an infallible proof that the accounts in the Ledger are correct, when the two columns show equal amounts? It is not. Every entry in every account in the Ledger might be reversed, I. e.f placed to the opposite sides of the accounts^ and every account might con- tain the entries of any other account but its own, and still the result of the Trial Balance would be the same. 27. Is not the Trial Balance, consequently, useless? No. If the person keeping the books thoroughly understands the grand principles of Dr. and Cr. by Double Entry, and be careful in checking his books, the Trial Balance will then be the most satisfactory proof that can be obtained of the correc'.aess of the posting, previous to making the Final Balance. * The*" columns are placed differently, accordingr to fancy, sometimes to the right and left «( the folio, with the natno!i of the accounts between them [See Trial Balance, Second Set, -Miga 17] and sometimes with both Dr. and Cr. columns to the right, like a Journal. xLr INTRODUCTION. The Different Kinds of Aoconnts. . 28. How many kinds of Accounts are there ? Only three. 29. Name them. ( I.) Real. (2.) Personal, and (3.) Fictitious — Nominal, or Accommodating. 30. What are Real Accounts ? They are the names of the Acccjnts which represent my property : such as Cash, Merchandise, Bills Receivable, Bank, Bank Stock, etc. — in fact, whatever can be realized upon and turned into money, are called Real Accounts. 1. Bills Payable. — This account is placed, by all the authors that I have read upon the subject, among Real Accounts. They are clearly wrong. A Real Account is an account of property which can be exchanged for money, or bar- tered, i. ^., realized upon. The Bills Payable Account differs in its nature from Real Accounts. How can I realize upon my liabilUUs or debts ? Again, Real Accounts are closed By Balance ; Bills Payable Account always To Balance ; thus differing also from the Real Accounts in the mode of its BaL In this respect it likewise differs from the Personal and Accommodating Accounts (See questions 31 and 32). It is therefore an anomaly in accounts, and the only definition which I can give of it is, that it is an aggregate account of my indebtedness to persons, transferred from their respective ficcounts to it, by my acceptance of their Bills or Notes of Hand. 2. Bank Stock and Bank Deposit Accounts are Real Accounts, whereas a Bank Current Account must be considered a Personal Account. 31. What are Personal Accounts? The Accounts which represent the persons with whom I do business on Credit.* 32. What are the Fictitious, Nominal or Accommodating Ac- counts ? These Accounts represent m)rself— the merchant — and are designated Stock, Profit and Loss, and Balance. 33. Why do you say these Accounts represent the Merchant? Because the Stock, etc., stands for his name. 34. Suppose there were partners in the firm, would one Stock Account be sufficient ? No. I would then be obliged to open a Stock Account for each of the part- ners, thus : A. B.'s Stock Account, C. B.'s Stock Account, etc.t - * The uiswer to this question, in every worlt 1 have read on Book-keeping, is erroneous, and calculated to mislead the leamef. The answer invariably given is, " The Accounts of per- lons with whom I do business." Nothing can be more absurd. It I have Cath transaoUona witli a thousand persons, amounting to millions of money, I open no account for these rarsoni in the Ledger, because they paid for what they got, and I paid them for what I purchased. It ii plain, therefore, Personal Accounts are opened for thoae oply who dsai on Credit. t Balancing the Books in this case do«s not affect the Company's Stock or Capital Acoonnt: U remain* Just aa it was. See page 189. „ INTRODUCTION. ir Order of Opening Acconnts. 35. Can you telL the order of time in which these accounts should be opened in the Ledger? The Stock Account is to be opened first, and, as I have already said, it represents myself, /. e., in it are entered, on the Cr. side, all I possess in the business, and on the Dr. all I owe. It shows my position, commercially, at the commencement of my business, as clearly as a good mirror rejects me physically. If I look into the Stock Account, I see on my left hand, or Dr. side, all I owe, and on the Cr., or right hand side, all I possess. The difference, of course, would be x&\ net estate. The Profit and Loss Account is opened when any casual gain or loss requires to be entered in the corresponding accounts ; and at the time of closing the books, the results of all its branches, viz : Interest, Discount, Expense, Wages, Com- mission Account, etc., are brought into it, as well as the gain or loss on the Merchandize Account, etc. The Balance Account is opened when I commence to close the accounts in the Ledger, and all the balances %i all the accounts are brought into it. Instead of opening this account in the ordmary Ledger, it is often kept in a separate book, called the Balance Ledger. n 1! Of the Balance— Real Accounts. 36. How are Real Accounts closed or balanced ? They are all closed — first. By Balance for the amount on hand, if thei 3 be any ; and — second. To ox By Profit and Loss for the gain or loss. 37. Why did you not say To or By Balance, instead of By only, in closing Real Accounts ? Because, in the case of the Cash Account, I cannot pay out more than I receive ; also, in the Merchandize Account, I cannot sell a greater quantity or number of packages of goods than was bought ; and as what came in was entered on the Dr. side of the respective accounts, and the amounts paid out in the one, and the quantity or number sold in the other, were entered on the Cr. side, it is impossible that the Cr. side in either account can exceed the Dr. And as the Balance in all cases is taken to the less side to make both equal, it can never be carried to the Dr. side, because that can never be the less, but always the greater, while any portion of my property remains on hand, unpaid out, or unsold. * 38. Are all the Real Accounts closed, as you have said, To or By Profit and Loss ? Two of them are never closed To or By Profit and Loss, viz., the Cash and Bills Receivable Accounts. * When thers ii no B«Unoe, i. «., when all li sold, the Acoounts are oloeed To or Bjr Profit and LoM onlv xvi INTRODUCTION. I I \ 'it . 39. Why? Because in receiving or paying out Cash, it neither increases nor decreases in valud, /. e., if I receive five dollars, all I can possibly pay out are five dollars ; and if I pay out only four, I must account for the other dollar, which is the Bailee, and will close the account. 40. But suppose, as in the case above, you find, on counting the Cash on hand, that you have only ninety cents instead of a dollar, how are you to close the account ? I must first use all diligence to find out the error, and if I fail in this I may charge the ten cents to myself, or to Profit and Loss, and thus adjust the account; so that the ninety cents, the Balance on hand, will then close it. 41. You have said the Cash and Bills Receivable Accounts can never be closed To or By Profit and Loss ; have you not used it as a closing entry just now ? - I have not. It was only used as an adjusting entry; and whether I closed the Cash Account at the time the error was discovered or not, it was proper to make such entry, so that the Cash Book entries and the actual Cash on hand might correspond. It would not have been a closing entry, had I continued to make fui .her records in the Cash Book ; no more would it have been, had I at once balanced the account. In the case above referred to, you will have observed the Balance entry comes last, whereas, in the other Real Accounts — as Merchan- dize — it is entered first, and Profit and Loss last, which must ever be the practice, or the gain or loss could not be ascertained at all. The Cash Account can never, therefore, be closed either To Balance, or To or By Profit and Loss, but only By Balance for the amount on hand, if there be any. Indeed, the idea of Profit and Loss should never be entertained in connection, either with keeping a Cash Account or closing it. When all the Cash has been paid away, the two sides of the account should be equal, and the account may then be said to close itself. 42. Wliat about the Bills Receivable Account? It is closed similarly to the Cash Account, and the same line of argument will apply equally to it. 43. But suppose you discount the notes at the Bank, you would, of course, get less cash for them, by the amount of the discount, than their face value, and when placed to the Credit of the Bills Receiva- ble Account, would not correspond with the amount of the notes as entered on the Dr. side of that Account. Discount — another term for Profit and Loss — would, in this case, be used as the adjusting entiy ; and the cash received for the notes, together with the dis- count, would be equal to the face amount of the notes, and might be entered to the Cr. of the account, either separately, or jointly, By ^Sundries. INTRODUCTION. \TI1 44. Is there not another method, in very general use, of entering the amount of the notes discounted to the Cr. of the Bills Receivable Account ? There is another mode, viz. : Enter on the Cr. side of the Bills Receivable Account the whole amount as written on the Bills — By Cash, and Dr. the Cash Account also with the full amount. To Bills Receivable ; and then Cr. the Cash Account — By Discount for the amount charged by the Bank for discounting the notes. The result in both cases will be the same. If a portion only of the notes be discounted, the amount of those remaining on hand will close or balance the account. •11 E:,.» PERSONAL ACCOUNTS. 45. How are the Personal Accounts closed ? They are closed either To, or By Balance for the difference between the two sides. 46. How does it happen that Personal Accounts are closed To, or By Balance ? Because the persons represented by these accounts may either owe rof; or I may owe them. If the former, the Dr. side of the account would be the greater, and must be closed By Balance ; whereas, in the latter, the Cr. side would be the greater, and must de closed To Balance. 47. Suppose you were to sell goods to some one on credit, whose ability or willingness to pay, you had no reason, at the time, to doubt, but afterwards found that he was both unable and unwil- ling to pay anything ; how would you close the account ? By Profit and Loss for the amount at the Dr. Side, and carry it to the Profit and Loss Account. 48. Again, suppose a case similar to the last, but with this difference, you know the person to be strictly honest, and that he will pay you when he obtains the means ; how would you close his account ? By the Suspense Account, to await the result. 49. Would you consider the amounts as losses in both these cases ? Only in the former. The latter amount is merely suspended, 1. e. hung up. The Fictitious, Nominal or Accommodating Accounts. 50. Now that you have closed the Real and Personal Accounts, and the branches of the Profit and Loss Account, what accounts yet B xviii INTRODUCTION. remain to be closed that your books may be balanced, and the state of your affairs fully known to you ? The Three Accommodating Accounts, which are closed in the following order, viz., ist. Profit and Loss ; 2nd. Balance, and 3rd. Stock. 51. How are they closed ? They will close each other, if the books have been correctly kept. 52. Explain the process. I first add up the two sides of the Profit and Loss Account, to ascertain which is the greater ; having fouud this, I close it To Stock for gain, if the Cr. . side is the greater, and carry the amount to the Cr. side of the Stock Account — writing By Profit and Loss for gain ; and if the Dr. side is the greater, By Stock for loss, and carry this amount to the Dr. side of the Stock Account — writing To Profit and Loss for loss. * I next close the Balance Account By Stock for the diflference between the two sides, which is my Net Estate, or the Excess of Assets over Liabilities, and carry this amount likewise to the Stock Account — writing To Balance for Net Estate. The two sides of the Stock Account, if the books have been correctly kept, must now be equal, and the books closed. 53. Can you demonstrate the last statement to be correct, viz., that the two sides of the Stock Account must be equal, whether you have gained or lost, if the books have been correctly kept ? I shall endeavour to do so. If, as has been stated, the gain found in the Profit and Loss Account was carried to the Cr. side of the Stock Account and added to what 1 possessed when I began business, (See Q. 35) the sum of these two items would be equal to what I possess now, because I can only be worth what I had at first and what I have gained ; and as the Balance Account shows, on the Dr. side all my assets, and the Cr. side all my liabilities, then the differ- ence between the two sides of this account must be my Net Estate, or what I am actually worth at the present moment ; and as we have seen that the Balance Account is closed By Stock for this amount, and the Stock Account Dr. with it. To Balance, what I possess now is by this means placed in the Stock Account, opposite what I had when I commenced business, together with what I have since gained, and these sums must be equal, if the books have been correctly kept, as they both represent the same thing, viz., what I am actually worth at present. Again, if I have lost, it is clear I cannot have as much now as when I began, and it will be found that the Dr. side of the Profit and Loss Account is greater than the Cr., and will therefore be closed By Stock, and the amount brought to the Dr. side of the Stock Account, To Profit and Loss for loss j to which will be * By noticinur the expressions used in closing tlie Profit and Loss Account, the pupil mav deduce the following, viz : If the business has produced a gain, since the boolu were Inst bal- anced, or since they were first opened, the Cr. side of the Profit and Loss Account will be the greater ; and if a loss has been the result, the Dr. side will be the greater. An unerring rule For making entries in the Profit and Loss Account, is, enter the losses on the Dr. side, and the gains on the Cr. side. ' I would here remind the pupil that, in closing the books when kept by Double Entry, every Dr. must have a oonvspouding Cr., and every Cr. a corresponding Dr., Juataa in posting the Lodger. INTRODUCTION. XIX added my diminished capital, because, as before, the Balance Account is closed By Stock, and the amount caiTied to the Dr. side of the Stock Account, and added to the loss ; and as the loss and what I now possess must be equal to what I began with, which is at the Cr. side of the Stock Account, both sides of the account must now be equal, as well as when there is a gain. 54. Can you state the substance of this more briefly ? I shall try. If, in the Stock Account, I add what I possess now to what I owed when I began (which is on the Dr. side of Stock), and what I now owe, to what I possessed when I began (wh . h is on the Cr. side of Stock), the differ- ence of these two sums will be equal to the difference between the two sides of the Profit and Loss Account, i. e., the difference between the two sides of the Proiit and Loss Account, whether a gain or loss, added to the smaller of these two sums in the Stock Account, will make the two sides equal and close the books.* 55. Is your Ledger now in a proper state to receive the Entries which have accumulated in the Day Book and Primary books, dur- ing the time you were occupied in balancing it ? The balances used in closing the accounts have yet to be brought down, before the Ledger is in a fit state to receive further entries. 56. To which side of the accounts do you bring down the balances ? To the opposite side, i. ^., if I find them on the Dr. side, I bring them down to the Cr. side, and vice versa. This operation re-opens the accounts in the Ledger, and prepares it for receiving entries until the time of making the next balance. WM. R. ORR. Toronto, ist June, 1868. * The reason the words To or By Stock are used, in closing the Profit and Loss and Balance Accounts, is, that the difference between the two sides of these two accounts— the one repre- senting the gain cr loss, and the other my Net Elstate, at the time of balancing the boolcs, may be brought Into the Stock Account ; and that what I now possess, viz., the amount carried from the Balance Account, may be brought down to the Credit side of the Stock Account, when the balances of the other accounts are brought down, and the books re-opened. It may be remarked that the differences between the two sides of any two of these accounts will close the third. Thus, the Balance and Stock Accounts will close the Profit and Loss Ac- count, and the Stock and Profit and Loss Accounts will close the Balance Account ; and we have seen already that the differences between the two sides of the Profit and Loss and Balance AcoountB closed the Stock Account, and proved the correctness of the books. if ELEMEJSTS OF BOOK-KEEPING. FIRST SET. m As keeping an account of money received and paid, furnishes the simplest example of Book-keeping, we commence with a Cash Account. Let us suppose a person engaged in money transactions, of receiving and paying, which are written down as they occur ; it is obvious that, if he wish to know what money he ought to have on hand, he must pick out all the sums received, and add them toge- ther, and also all the sums paid ; and then, by subtracting the one from the other, he will be able to tell what money ' e should have on hand (if any) ; and afterwards, by comparing the sums thus indi- cated in his book, with what he actually has in his desk or elsewhere, he can tell whether he has kept his books correctly. Now, in order to be able to do this at any time, without the delay of separating the sums received, from those paid, the method adopted in Book-keeping is, to have a Cash Account, either in a book by itself, or in a book among other accounts. For this purpose, take the two opposite pages of a book (which two pages taken together are then called a folio); rule each with money columns towards the right hand, and a column for the date on the left hand. Then write on the top of the left hand page, in a text hand, "Cash, Dr.," and on the right hand page, "Contra, Cr. ;" the former is then called the Dr. or debtor side, the latter Cr. or credit side.* * Sometimes one broad page ia made to hold both the Dr. and Cr. side. Arranging accounts in the manner described above, on tv, o opposite pages, the one for whatever comes in, oallMl the Dr. side, the other for what goes out, called the Cr. side, is what is meant by Iceepiug booim bj Debtor and Creditor. r"i 'm 2 Elements of Book-keeping. ii '[ h. All sums on hand or received, are entered on the Dr. side ; and all sums paid, on the Cr. side ; because the word Cash, at the top of the page, is put for the person himself to whom the books belong, in so far as cash is concerned ; and, in Book-keeping, every one is con- sidered Dr. for what he receives, and Cr. by what he gives out. DIRECTIONS. The first thing that the pupil should do, is to copy out, in a fair legible hand, the transactions stated from page 4 to 7, into a book ruled with money columns towards the right, and a column for the date towards the left, and either with or without a head line. This book is called, sometimes, the Waste Book, because the entries in it have been regarded as superseded and rendered no longer necessary, by being transferred to the Journal (a book afterwards to be described), and it is sometimes called the Day Book, because the transactions are entered in it every day, as they occur, without technicality of form. Let him then open an account for Cash, as above directed:- and having done so, let him go over, seriatim, the transactions which he has copied into his Waste Book, carefully observing in each, whether the cash was received or paid out, entering as he proceeds, whatever was received on the Dr. or left hand side, and what was paid out on the Cr. or right hand side, in this form^ : First Set— Directions. 1868. Cash. Dr. 1 868. Contra. Cr. Jan. I »> 2 1* 2 To Bal. on hand . fl 0CI6S ••••••• W. Thompson $ C: 1 400 00 ' Jan. I «5 70: ' „ 2 ifas 5O1 >> 1 i 3 $651 20 1 i i By John Jones . ,, Expenses.. ,, Balance... $ 325 68 256 $651 c. 50 75 95 20 Having thus entered all the different sums on their respective sides, let the pupil then add up, first, the one side, and then the other ; let him then subtract the smaller sum from the larger, and side; and the top of belong, in )ne is con- i out. |r out, in a D 7, into a column for head line, the entries no longer terwards to >ecause the ir, without ; directed; ions which g in each, ; proceeds, what was Elements of Book-keeping. 8 at the bottom of the smaller side let him enter the difference by which they will be made equal. This is called balancing an account, that . bringing both sides to an equality, like a pair of balances equally poised ; and the sum necessary to bring them to an equality is called the balance, and entered To* or By Balance, according as it is required on the Dr. or Cr. side of the account. Thus, in the above example, the Dr. side was first added up, making $651.20 ; then the Cr. side was added up, and was found to be $394.25 ; this being subtracted from $651.20, leaves $256.95, which is added to the Cr. side, with the words By Balance, before it, and thus makes both sides equal. $256.95, therefore, is the money on hand, and ought to correspond to the money actually in the pos- session of the person whose transactions are recorded. * NoTB.— "To Balance" can never occur In balancing Cash (or any other real account), as you cannot pay out more than you receive, consequently the Cr. side can never be the greater. W. R. ORR. '•Ill Cr. — $ 325 68 256 c. 50 75 95 $651 20 f respective d then the larger, and * WASTE BOOK The tranactions in this set are to be regarded merely as the items or transactions of a Cash Account, and all that the pupil is expected to do, is to distinguish Cash received from Cash given out, that he may enter the former on the Dr. side of the Cash Account, and the latter on the Cr. side. TORONTO, 1ST JANUARY, 1868. L.P. I I have on hand at this date, Cash 500 This is the balance on hand from the former time of balancing the Cash, and must be entered on the Dr. side of the Cash Account, with the date and words. To bal- ance on hand * before it. Paid John Cummings, for Books, as per invoice . This is money paid, and therefore mu.st be entered on the Cr. side. By John Cummings. Sales this day Sales are what I sell, and, therefore, the money is re- ceived, and goes to the Dr. side. To Sales. (Should be. To Goods for Sales — W. R. ORR. House expenses for last week House expenses imply money going out, and therefore this sum goes to the Cr. side : By House Expenses. * Note.—" Balance on hand," that In, the amount of Cash actually in possession at the time of the former balance. W. R. ORR. 360 89 C 00 75 *S 40 $ c. oo 00 ' 75 »S 40 FIRST SET. TORONTO, 2ND JANUARY, 1868. fL.F. I Received from William Thompson, for an Ency- clopaedia sold him Received for sales this day -3- $ 200 48 c 00 so Paid Houston & Co., for xoo copies Euclid's Elements 125 00 Paid House Rent, one half year, ending 25 th December last Enter this, By Expenses. Paid Taxes, Grand Jury Cess, for Michaelmas Term Enter this, By Expenses. Received from John Hunter, Rent for Stable, one half year, to 25th December Received for sales this day. 4_ Paid Thomas Mason his account for painting house Paid John Cummings, for Books, as per invoice 100 00 19 as 47 67 SO 40 27 136 50 40 - 1 fi\ i 1 ill ii 6 ii '? BOOK-KEEPING-. TORONTO, 5TH JANUARY, 1868. he hi d d M S( isl T g< B) tt( lis ill i i as lit as i ss L.F. I I I I I I I I I Paid Thomas White his account for printing Catechism $ 48 120 470 38 15 47 97 175 22 c. GO 5 Received for sales this dav 68 • 6 Received Legacy uom the Executors of the late Mrs. Mary Campbell, deducting duty and other exnenses 00 This cash came in and nothing went out, therefore, Cash Dr. To Profit and Loss— not to Legacy. 6 Paid wa&res to Shonman. due 28th ult 50 Enter, By Wages or Expenses. 6 Paid Patterson for Coals, 2 tons 00 Enter this By Expenses. 6 Paid William Wilson his account for Book-bind- inor 50 "'ft 6 Received for this dav's sales 45 7 Remitted Waddell & Co., on account of Books Durchased 75 To Remit, is to send money to a distance. This, there- fore, is Cash going out, and goes to the Cr. side of the Cash Account. 1 Received from Samuel Ely, for Books furnished to Ross librarv 25 FIRST SET. TORONTO, 7TH JANUARY, 1868. L.F. I I I Paid Hanny his account for repairs of Shop and House $ 65 20 54 c. 50 7 Received from Hanny, for old shop furnishings, includin&r crlass-case 00 7 Received for sales this day 75 The cash on hand to close this account is $570.23. This amount agrees with the difference of the two sides, which proves the account correct, and will close it. W. R. ORR. The pupil should be made to do this exercise upon a separate piece of paper, properly ruled, before he enter it in his book ; and he should not be permitted to leave it till he fully understand it. The teacher should also dictate to him other transactions, and require him to post them, that he may acquire readiness in placing cash going out, and cash coming in, to the proper sides of the Cash Account. % QUESTIONS ON THE FIRST SET. What is meant by Cash ? Why is this book begun with a Casli Account ? If you wrote down in a book the money you received and the money you gave out, in the order in which the transactions occurred, what would you need to do that you might ascertain wliether your accounts were correct or not ? What plan is adopted to avoid this tedious operation ? In what kind of book would you rccjuire lo keep your Cash Account ? What is a folio in the language of Book-keeping ? What would you write on the left hand page of your folio ? What on the right ? Suppose you receive a sum of money, on which side would you place it ? Why ? What does the word Cash stand for? ■1 '>^ / 8 BOOK-KEEPING-. QUESTIONS ON THE FIRST SET— Continued. What is the difference of Dr. and Cr. ? What is the first thing that the pupil ought to do ? What is this book called ? In what order do you enter your transactions in this book ? After having written out the Waste Book, what is to be done ? What is to be carefully observed? On what side do you enter Sales, House Expenses ? When the sums are all entered, what is to be done ? When is the balance entered To* and when By? Why, in the example given here, is the Balance added to the Creditor side? What is meant by remitting money ? In CMh never to BaUoce— (See Oenenl (Jueetions 30 Mid 37). W. &OSB. iir'Q " ^ FIRST SET. CASH ACCOUNT. hi 10 First Set— Cash Acootmt. I FOL. I Dr. Cash. Cr. 1868 •p. D.B. $ c. 186 8 p. D.B. $ c. Jan. I To Balance .... 4 Soo 00 Jan I. I By J. Cummings. 4 360 75 >» „ Goods (sales) >» 89 25 »» „ Expenses .... »J 8 40 2 ,, W.Thompson 5 200 00 3 ,, Houston & Co 5 125 00 9t ,, Goods (sales) •1 48 50 »> „ Expenses.... »» 100 00 3 „ J. Hunter . . ft 47 50 M „ Do. >» 19 25 >> „ Goods (sales) >> 67 40 4 „ Thos. Mason. »» 27 50 S ,, Do. do, 6 120 68 5 ,, J. Cummings. »• 1.36 40 6 ,, Profit & Loss. >i 470 00 »i „ Thos. White. 6 48 00 >> „ Goods (sales) i» 97 45 6 ,, Expenses.... »i 38 50 7 „ Samuel Ely. . >> 22 25 »» „ Do. >t 15 00 >> ,, Hanny 7 20 00 >> „ Wm. Wilson. »» 47 SO >> „ Goods (sales) )> .S4 75 7 „ Waddell&Co )> 175 75 >> „ Hanny 7 65 50 To Balance .... >i „ Balance S70 23 1737 78 1737 78 i 570 1 i 23' * P.D.B.-Page Day Book. Mil' BOOK-KEEPING-. U roL. X Cr. p. D.B. $ c. 4 360 75 »> 8 40 S 125 00 »» 100 00 »» 19 25 tf 27 50 >• 136 40 6 48 00 >i 3« SO >i IS 00 t» 47 50 »» 175 75 7 65 50 S70 23 1737 78 SECOND SET. CASH AND PERSONAL ACCOUNTS. If I have transactions in money with other persons, such as paying and receiving, borrowing and lending, etc., it is necessary not only to keep an account of my Cash, that I may know at any time what I have received, what given out, and how much I have on hand ; but also to keep an account with each of the persons with whom I have dealings ; that I may know whether I owe any- thing to them, and how much ; whether they owe anything to me, and how much ; or whether our accounts be clear. In order to effect this purpose, I first open a Cash Account, as directed in the First Set, which is to be my own account ; the word " Cash," at the top, standing, as before, for myself, in regard to Cash. I then open an account for each of the persons with whom I have dealings, that is, I write each of their names upon a folio of the Ledger, putting Dr. (debtor) on the left hand page, and Cr. (creditor) on the right. When I receive money from any of these persons, I put down on the Dr., on left hand side of the Cash Account, " To" that person, adding the sum in the money column, because I am consid- ered debtor to the person for what he gives me. I then turn to that person's account, and upon the Cr., or right hand side, I write, " By Cash," adding the same sum, because that person paid it out, and therefore he is Cr. for it. The same sum, therefore, will appear on the Dr. side of the Cash, that is, of my account, and on the Cr. side of his account ; intimating that, apart from all other dealings, I am his debtor, and he is my creditor for that sum. lit I'M hW ! ■ 1 |9» ^ !• M f W Book-keeping. But if I pay him money, I turn to the Dr., or left hand side of his account, and write, " To Cash," adding the sum, because he received it, and therefore is debtor for it ; and then I turn to the Cr., or right hand side of the Cash, that is, my own account, and write, " By" that person, adding the sura ; so that this sum will appear on the Cr. side of my account, and on the Dr. side of his ; intimating that I am his creditor, and that he is my debtor for that sum. This system of entering all transactions twice, namely, on the Dr. side of one account, and on the Cr. side of another, is called Book-keeping by double entry. It proceeds upon the obvious prin- ciple that every debtor must have a creditor, and every creditor a debtor \ and it keeps an account both for the debtor and the creditor in every transaction. Whatever, therefore, is entered on the Dr. side of one account, is entered on the Cr. side of another, and vke versa. Having gone over all the items in the following Waste Book in this way, I add up all the items on the Dr. sides of all the accounts into one sum, and also all the items on the Cr. side into another, to ascertain whether they be equal, as they ought to be, if they have been posted correctly. This is called a Trial Balance. Having found, or made them correct, I then balance the Cash Account as before, which will show me how much money I have on hand. In the same way I balance the accounts kept with :^ifierent persons, which will show me how much I owe to any of them, or how much any of them owes to me. . ere crt L. ] ] SECOND SET. WASTE BOOK. 13 The transactions 'in this set are mere cash transactions, /. e., giving out and receiving money ; but they are cash transactions on credit, and therefore accounts with those persons who give or receive credit, are necessary. TORONTO, 1ST JANUARY, i868. L.F. I I I I I 2 I 2 I have on hand, commencing business, Cash .... This Cash on hand must be put, as before, on the Dr. side of the Cash Account ; but for a reason, to be after- wards explained, the words "To Stock," and not ''To Balance, must be written before it. I $ 250 100 265 1 100 i c. 00 Borrowed of William Reid OS This money came in, therefore it must go to the Dr. side of my account, /. e. , the Cash Account ; but it went out from William Raid, and therefore it must be entered on the Cr. side of his account. I - Paid James Thompson 80 This money being paid, goes to the Cr. side of my Cash Account, but to the Dr. side of James Thompson's account, because he received it. .1 Received from John Robertson 00 i'l ■^•f ^ i \'^ : ;j [ M' :t' I ii m H SECOND SET. * TORONTO, 3RD JANUARY, 1868. L.P, I 2 I I I 2 I I I I I 2 I 2 I 2 I 2 I 2 Received from James Thompson 4 Paid William Reid, money borrowed 6 Lent John Robertson Paid iVilliam Reid 5 6 Lent William Reid 8 Received from John Robertson 8 Paid James Thompson Received from John Tod, for James Thompson . . Here the cash comes in ; it is therefore entered on the Dr. side of the Cash Account, "To James Thompson," and as it came on account of James Thompson, on the Cr. side of his account ; and no account is necessary for John Tod. 10 Advanced for John Robertson Here I paid cash for John Robertson ; the sum, there- fore, goes to the Cr. side of the Cash Account, *' By John Robertson," but to the Dr. side of his account, because the cash was paid for him. 12 John Robertson paid me the balance of his ac- count* 14- Received from James Thompson 345 100 175 135 50 125 186 38 77 27 250 c. 75 00 10 50 00 00 10 20 so 60 0^0 * As Robertson has pnid me the halance of hia account, it should therefore be closed at ones, so OS Dot to mix up the i^ast Iraniautiona, tlius closed, with future ones. W. R. ORR. 345 lOO c. 75 oo N 175 10 135 50 50 00 125 00 186 10 38 20 77 •50 27 60 250 0^0 :eforo be closed at W. R. ORB. SECOND SET. DIRECTIONS. 15 When these items are posted and balanced, it will be found that I have a balance of cash on hand of $246.55 ; that William Reid owes me $185.50; that I owe James Thompson $182.05, ^^d that my account with John Robertson is clear. If I wish to know whether I am a gainer or loser on the whole, so far as these receipts and payments are concerned, it is obvious that I must add the cash that I have on hand to that which William Reid owes me, and then subtract that which I owe to James Thomp- son, by which it will appear that I am now possessed of $250 ; precisely the same sum that I had on hand on commencing the transactions. Now the manner in which this result will be shown in a Ledger, is as follows : — If I intend at the time of opening these accounts, thus to balance and close all the accounts, I must begin with open- ing an account in the Ledger for Stock, writing on the top. Dr. Stock, I Contra Cr. , and on the Cr. or right hand side, I must enter the cash that I had on hand at the commencement, namely, $250, writing before it the date, January ist, and " By Cash."* This stands, without addition or alteration, till the accounts are to be closed. Having balanced the different accounts as directed above, I open another account, for Balance, and on the left or Dr. side of that account I enter those balances that appear on the Cr. or right hand page, namely, the balance of the cash and of William Reid's account ; and on the right or Cr. side, I enter those balances that appear on the Dr. or left hand page, namely, in this case, that of James Thompson. I then balance this Balance Account, /. c, add up the two sides separately, and subtract the least from the greatest, and add the difference, which will be found in this case to • The master may hero make the pupil ojion a Stock Account, as directed, informing him that, in practice, this is done at the uomincncument, but wa» postponed till be shculd be able to uuderitand the use of it. W. R. ORR. r 'P' ■Mi ■il .!:! jfl III) ill ■" <)■ ;:i!ll llifl'P 16 Second Set— Directions. be $250, to the smallest side, to make it equal with the other, writing before it, ** By Stock," for my net estate. I then turn to the Stock Account, and write on the Dr. side, " To Balance," for my net estate ; and as this is precisely equal to the cash entered on the other side when I began, it shows that I have neither lost nor gained, having precisely the same value of property. There is one difference, however, in my affairs, namely, that when I began I had $250 in cash, whereas I have, in closing, only $246.55 ; but the difference between what William Reid owes me, and what I owe James Thompson, makes up the deficiency of cash, namely, $3.45. Instead, therefore, of having $250 in cash, I have in cash $246.55, together with $3.45 owing to me more than I owe, which amounts to the same sum. Example of the Balance Account. Dr. Balance. Contra. Cr. 1868. Jan'y. >> 14 To Cash $ 246 185 432 c. 55 50 1 j 1868. ! Jan'y. i »» 1 1 14 >> Byjas. Thompson. „ Stock $ 1 .82 1 250 1 432 c. 05 ,, Wm. Reid 00 05 'I'he master will make the pupil complete the balance, as here exemplified. \ the other, I turn to the ice," for my tered on the lier lost nor There is one began I had 55 ; but the [ what 1 owe mely, $3-45- ash $246.55, lich amounts ant. Cr. Dmpson, $ I 182 1 250 c. 00 ll 43205 re exemplified. m Form of Trial Balance. (.See Ledger Accounts, Second Set.) vt Stock Cash William Reid . . . James Tbomjjson 1 1 Dr. Cr. 1 00 1236 285 451 1973 00 55 90 95 250 990 100 633 1 1973 no no no I 95 95 $ QUESTIONS (3N THE SECOND SET. When you have transactions in money with other persons, what is necessary besides keeping a Cash Account ? Why is this neces- sary ? How would you manage this ? Would you write the names of the persons with whom you have dealings on both sides of the Ledger ? On which side would you put Cr. ? If you receive money, in which account would you enter it, and on which side ? After you have entered it in the Cash Account, where would you enter it next ? On which side ? Why ? Where will the sum now appear in your books ? What would you understand by the position of this sum in your books, considering it apart from all other transactions you may have with the same person ? Suppose now, that instead of receiving, you pay money to the same person, how would you enter it in your books ? When you thus enter every transaction twice, what is this mode of Bock-keeping called? Upon what obvious principle does it proceed ? If you enter in the Cr. side of one account, on which side do you enter the same sum in the other account ? When you have gone over the Waste Book in this way, what are you to do ? When you borrow money, on which side of your account would you enter it? What do you mean hy postirg ? When you have posted all the accounts, what is your next operation ? What does the Trial Balance ascertain? Why should the sums of all the debits and of^^^^,^^ ill i"! I i ti-.^Tit.^imusMtsm It Questions on the Second Set. all the credits be equal ? If you wish to know whether you are a gainer or a loser, what would you do ? When you open an account for stock in the Ledger, on which side would you enter the cash that you have on hand ? When you have balanced the different accounts, what next? When this Balance Account is finished, what are you to do with it ? When, in adding up the two sides, you find one greater than the other, wlut are you to do with the difference ? fi m SECOND SET. CASH AND PERSONAL ACCOUNTS. \i m Hi 20 KOLi I Dr. 1868. Jan. 14 Second Set— Ledger. To Balance STOCK. L.F. $ C. 1868. 2 250 00 Jan. Jan. I 15 FOL. I Cr. By Cash By Balance , , PDB; 13 $ c. 250100 25000 Dr. CASH. Cr. ( 1868. Jan. I >t II 3 8 9 12 14 I* 15 To Stock . . . „ Wm. Raid . ,, J. Rebel Jon ,, J. Thompson ,, J. Robertson ,, J.Thompson ,, J.Robertson ,, J.Thompson To Balance PDB $ c. 1868. 13 250 00 Jan. I II 100 00 11 4 II 100 00 1 f 5 14 345 75 i> II II 125 00 )i 6 II 3« 20 II 8 II 27 fao II 10 II 250 00 II 14 1.236 55 246 55 By J. Thompson „ Wm. Reid.. ,, J. Robertson „ Wm. Reid.. „ Wm. Reid.. ,, J.Thompson ,, J. Robertson ,, Balance. ... PDB 13 14 II II II II II L.F. 2 $ IC- 265.80 100 00 1/5 ID 13550 50 00 186 10 77 SO 24-! 55 1236155 Dr. WM. REID. Cr. 1868. Jan, II n 4 5 6 It IS To Cash . „ do. . „ do. . To Balance PDB $ c. 1868. 14 100 .jO Jan. I »i 135 SO n 50 285 lis 00 50 SO )i 14 By Cash.... ,, Balance PDB $ 13 100 L.F. 2 185 285 1 c. 00 50 so FOL. I Cr. PDB; $ C. 13 250 00 250 00 Cr. I — ' ^'■ 1 1 — FDB $ |C. )n 13 265,30 , , 14 100 00 )n 175 10 , , 135 50 on 5000 186 10 on 77 50 L.F. 1 • • 2 24"|55 123655 Cr. PDB $ C, , , , 13 100 00 L.F. 2 185 50 1 285 50 FOL. 2 • Dr. Second Set— Ledger, JAS. THOMPSON. 21 FOL. 2 Cr. 1868. Jan. 1 fi 8 tt 14 To Cash . ,. do. . Balance PDB 13 14 L.F. 2 $ 265 186 18205 633 95 1868. Jan. >> 15 By Cash „ do. „ do. T.y Balance PDB 14 $ jc. 345 75 38 20 250 CO 633 182 95 OS Dr. JNO. ROBERTSON.* Cr. 1868. Jan. >> To Cash . ,. do. . PDB $ c. 1 1868. 14 175 77 252 ID 50 60 Jan. u >> I 8 12 By Cash. „ do. . ,, do. . PDB 13 $ c. I00|00 125.00 27|6o 252 60 The three Personal Accounts in this set, viz., Reid, Thompson and Robert- son's, exhibit the various conditions which Personal Accounts caii assume at the time of being closed. Reid owes me ; I owe Thompson ; Robertson and I owe each Oiher nothing. A Ledger, containing ten thousand Personal Accounts, could not show to the pupil any new phase of this kind of recount — except some indebted person were to tail, then his account would be closed by the Profit and Loss Account. W. R. ORR. Dr. BALANCE, Cr. 1868. Jan. 14 M l> To Cash „ Wm. Reid. L.F. $ c. i868. I 246 55 Jan. 14 >> 432 50 »> )> By J. Thompson ,, Stock .... L.F. $ 2 182 I 250 432 c. OS 00 OS * This account is not included in tho Trial Balance (See Day Book, page 17), because both sides are alilce and conHe(|UcntIy cHiiiiut alTeut it. It facilitates tho worlc of malciiig out a Trial Balance if all the accounts which close themselves are left out, W. R. ORR. T ■ I ■i' ( ^:t i.h A r4ii ■ r 1. . !■ T: M it ll i !t V. / 11^1 1 III 1: ii P. !:; i ; I Ihi I 22 BOOK-KEEPING. THIRD SET. CASH AND ANOTHER REAL ACCOUNT. Accounts of any kind of property, as Cash, Goods of any kind, Ships, Houses, Shares in Companies, etc., are called reai accounts, ?'. e., accounts of things which belong to me. One object of Book-keeping is to keep a record of my property, how it is vested, whether in money, or goods, or lands ; and as, in the course of mercantile transactions, it is continually varying, it is necessary to keep an exact account of these '.riations. Another object is to ascertain whether I be losing or gaining by my transac- tions, and how much I may have gained or lost during any given time ; and also, by what particular transactions the gains were made, or the losses sustained. Now these objects are effected by keepmg the real accounts, which are, as has been ei'plained, accounts of m}- property of whatever kind it may be. The following transactions are intended to show how a person's Stock may pass from one kind of property to another, how an account is kept of it, and how it is ascertained that profit has been made, or loss sustained. Then suppose that I deal in but one article, viz., Wine, and that by the pipe ; and that I buy and sell for Cash ; so that my Stock is always either in Cash or in pipes of Wine. For by always pujchasing and selling for Cash, I owe nobody anything ; nor does any one owe me anything ; so tliat I require to keep no accounts with any other person. I have, therefore, no Personal Accounts. I 1 THIRD SET. WASTE BOOK. TORONTO, 1ST JANUARY, 1868. J.F. I I have on hand, Cash $ 2000 00 Wine, 50 pipes, at $350 per pipe 17500 00 February ist. Sold to Williamson & Co., for Cash,- 6 pipes of Wine, at $375 10 Sold to James Allen & Co., for Cash,- 10 pipes of Wine, at $377 March 1 2th. I Bought of William Adams, for Cash,- i 17 pipes, at $366 30- I Sold to Michael Sullivan & Co., for Cash,- 50 pipes at $375 Anril 2nd. Bought, for Cash, from Joseph Staunton, — 37 pipes, at $375 Sold, for Cash, to James Allen & Co., 3 pipes, at $406 May 5th. Sold, for Cash, to Chas. Thompson,- I pipe, at $410 26 Sold to Anderson & Co., for Cash, — 5 pipes, which had sustained injury, at $320 $ 19500 2250 3770 6222 18750 13875 1218 23 00 00 00 00 00 00 00 410 1600 00 00 ^ijl 1^ .•ii. v.'V \n ■ Iff' 1 ,ii ■ |j I III' ! ' t ir ^ I 24 THIRD SET. TORONTO, JUNE i6th, 1868. J.F. 2 Bought of Wm. Adams, for Cash, — 18 pipes, at $325 $5850 00 5 do., at$35S 1775 00 18 'I Sold to Thomas Brett, for Cash,- 2 pipes, at $365 30- Sold to M. Sullivan & Co., for Cash,— 10 pipes, at $345 $345° °° 7 do., at $375 2625 00 _^ July ist._ Took Stock, and found on hand, — Cash $9081 00 Wine, 20 pipes, at $350 7000 00 Do., 13 do., at $365 4745 00 $ 7625 730 6075 c. 00 00 00 20826 00 To arrange these transactions in a Ledger, so as to effect the purposes of Book-keeping with regard to them, three accounts must be opened — one for Stock, a second for Cash, and a third for Wine. On the Cr. side of the Stock Account is stated the amount of Cash, and the value of the Wine on hand ; and the account remains in that state till the accounts are to be balanced ; that is to say, till I wish to know whether I have gained or lost by the transactions, and to what amount either of loss or gain. All the transactions, there- fore, are entered in the other two accounts. And here the general rule is to be observed, that whatever kind of property comes in, is to be entered on the Dr. side of its own account ; and whatever kind goes out, is to be entered on the Cr. side of its own account ; THIRD SET. 25 from this it will follow that whatever is entered on the Dr. side of one account will be entered on the Cr. side of the other, and vice versa; because, as often as Cash comes in, Wine goes out, and as often as Wine comes in. Cash goes out. To assist the pupil in posting his Ledger, let him previously write an exercise upon these transactions upon a loose slip of paper, the object of which would be to distinguish, in each transaction? which of the accounts is Dr., and which Cr. This will prepare him for understanding the nature and uses of a Journal, a book of which nothing has yet been said. The exercise is to be in the following form, omitting, of course, the directions printed in small type : .\\-m I :n TORONTO, 1ST JANUARY, 1868. Sundries Dr. to Stock, — Cash $ 2000 00 Wine, 50 pipes 17500 00 ist February. Cash Dr. to Wine, — Sold to Williamson & Co., 6 pipes, at $375 The Cash came in, and Wine went out, therefore Cash is Dr. $ 19500 00 2250 CO ■ v «':!' Hi!?:'; THIRD SET. TORONTO, lOTH FEBRUARY, iS68. Cash Dr. to Wine, — Sold to James Allen & Co., lo pipes, at $37.7 Here also Cash came in, and Wine went out, so that Cash is Dr. 1 2 th March. $ 3770 Wine Dr. to Cash, — Bought of William Adams, 17 pipes, at $366 1 62?2 Here the Wine came in, and Cash went out, there- fore Wine is Dr. C. 00 00 The last of the entries in the Waste Book, riamely, the taking of Stock, and finding how much Cash aud Wine remain on hand, is to be written in the exercise, thus : III Balance Dr., — ' To Cash $ 9081 CO ** Wine 11745 00 $ 20826 00 Third Set— Directions. 27 Having finished all the entries in this form on a loose slip of paper, let the pupil copy them in the same form and order, into a book ruled like the Waste Book, and which is called the Journal, (with double columns to the right). Having written the Journal, he then opens his tb'-ee accounts in the Ledger ; one for Stock, a second for Cash, ai 1 a third for Wine. Instead of posting the Ledger from the Waste Book, as in the former Sets, let him now post from the Journal. • In the first entry, Sundries are Dr. to Stock. The word Sun- dries always means in Book-keeping, not sundry or several articles, but sundry or several accounts. Here it stands for the two accounts mentioned immediately afterwards, Cash and Wine. These accounts are Drs. Let him therefore turn to the Cash Account, and enter the Cash on hand on the Dr. side, writing before it, " To Stock." Also to the Wine Account, and on the Dr. side write, '' To Stock," prefixing the date, and adding the number of pipes in the proper column, and the amount in the money column. Let him then turn to the Stock Account, Cr. side, and after writing the date as before, write, " By Sundries," adding the whole sum, $19500.00. Let him then proceed to the other entries in the Journal, and wherever he finds one account made Dr. to another, let him turn to the Dr. side of that account, which is made Dr., and write, "To ," mentioning the other account ; ?,nd then let him turn to the Cr. side of that other account, and write, ' By ," mentioning the first account. Thus, when he finds such ar^ entry as " Cash Dr. to Wine, $2250.00," he turns to the Dr. side of the Cash Account, and after the date writes, "To Wine, $2250.00;" he then turns to the Wine Account, and on the Cr. side he writes, after the date, " By Cash, $225000," also inserting in an inner column the quantity of Wine mentioned in the entry. ,' V : t I I. : I' i 1: i i 18 Third Set— Directions. The Wine Account will appear as in the note below,* and the Cash Account as in the former Set. ^Dr., WINE. CONTRA., Cr. 1868. Jan. I >i >> Mch. 30 pipes $ c. 1868. To Stock .... 50 I7SOO 00 Jan. I „ Cash .... 17 6222 00 >i 10 ,, Profit and 1.398 00 Mch. 30 Lossf . . 00 X »» 67 25120 By Cash M Do » Do ,, Balance.. pipes 6 10 50 67 $ c. 225000 3770J00 18750I00 35000 25120I00 III t The words " Profit and Loss" are the title of an account, -.«hlch will be explained after. !■■ '^1 Hi Third Set— Directions. 29 ilaincd after. Having posted all the entries but the last, which states the amount of Stock on hand, let the pupil make his Trial Balance as in the former Set. This being found correci, he must proceed to balance the accounts. He first balances the Cash Account, as in Sets one (i) and two (2). The Wine Account is differently balanced. The balance of that account consists in the quantity of Wine remaining on hand. This he will find by balancing the inner columns, in which the tiuantity bought and sold is stated.* Add up the number of pipes on each side, and on a slate or separate bit of paper, subtract the one .sum from the other ; and if there be a difference, enter it at the bottom of the side on which is the smallest quantity, which must be the Cr. side; for no more could be sent out than came in — and write before it, " By Balance on hand." A value must then be affixed to the quantity on hand, which, in real business, is the true value of the article in question, without the addition of any profit. Compute, then, the value of the whole Wine on hand, and enter the sum in the money column. Add up, then, the money columns on the Dr. and Cr. side, on a slate or loose slip of paper, subtiact the least from the greatest, and enter the difference on the side that is least. This difference, however, is not the balance of the account, /. e., it is neither what property I have in it, nor what I 0W8 upon it, but it is the sum that I have lost or gained by the transactions recorded. On the Dr. side has been entered the value of all that I had when I began, and of all that came in afterwards ; on the Cr. side has been entered the value of all that went out, and of all that remains on hand. The difference, therefore, must be my loss or gain. I' »: tSl I A * These columns answer the purpose of - Stock Ledger, or Warehouse book, which U or ought to bo kept by every wholesale house. ^ W. R. ORR. il 30 Book-keeping. I enter the difference then on the smallest side, prefixing not " To or By Balance^' but " To or By Profit and Loss." If the Dr. side was the smaller side, I enter upon it, '• I'o Profit and Loss ;" if the Cr. side, upon it, " By Profit and Loss." This entry requires the opening of a new account, namely. Profit and Loss, the use of which is to keep an account of my gains or losses ; and having entered on the Dr. side of the Wine Account, " To Profit and Loss for my net gain," I turn to the Cr. side of the Profit and Loss Account, and enter, " By Wine for my net gain," entering the amount in the money column. Add up now the two sides of the Wine Account, which will be found equal, and which closes that account. In order to close the Set, open an account for Balance, and enter upon it the balances of the Cash and Wine Accounts. As the Balances are entered on the Cr. sides of these accounts, they must be entered on the Dr. side of the Balance Account, ''To Cash" and "To Wine." Then close the Profit and Loss Accounts. This is done, as in the other cases, by adding up both sides separately, and subtracting the one from the other. But, in this Set, nothing is entered on the Dr. side ; we must, therefore, enter the whole of what is on the Cr. side, on the Dr. side. As this is gain, or an addition to my original Stock, I enter it, " To Stock for my net gain." I then turn to the Stock Account, and on the Cr. side I write. By Profit and Loss, ertering the same surn. Proceed now to close the Balance Account, by adding up both sides of it, subtracting the one from the other, and entering the difference upon the smallest jide. This difference would be all that I possess, after deducting from it all that I owe, and, therefore, is called my net estate. * Third Set— Directions. :n In this Set I have no debts due to me or by me ; nothing, therefore, is on the Cr. side of this account ; but, I add up the Dr. side, and enter the whole on the Cr. side, writing, •' By Stock for my net estate ;" I then turn to the Stock Account, and on the Dr. side enter, " To Balance for my net estate ;" and if the two sides of the Stock Account be now equal, the books have been kept cor- rectly ; not otherwise. The reason of this is, that the Dr. side of the Stock Account now contains all tiiat I possess, after deducting from it whatever I owe, and also whatever I may have lost. The Cr. side contains all that I had when I commenced, with the addi- tion of whatever 1 gained since. These statements, therefore, are both of them statements of my actual property, and, if correct, must be alike. :i m >t i I ;;! ll h ll r 32 Third Set— Questions. QUESTIONS ON THE THIRD SET. What are Real Accounts ? What two objects are effected by keeping Real Accounts? What are the transactions in this Set intended to show ? Why is it not necessary to keep Personal Accounts in the following transactions ? After the Waste Book has been copied out, hov/ many accounts must be opened in the I^edger, and for what ? What general rule is to be observed ? What book do you post from into the Ledger? How would aou enter the number of pipes of Wine ? In posting from the Journal, what would you do when you find one account made Dr to another ? What is the Trial Balance? What is to be dont ^vhen the Trial Balance is found to be conect ? What value do you give to Stock on hand? On which side do you enter Profit and Loss? How w'ould you close the Set ? What is your net estate ? i < I if!! m m fiii'! lill t i i t i THIRD SET CASH ANO ANOTHER REAL A000T7NT !■ If: li : It ^i^ !'"|l !!■ •'! 34 FOL. I JOURNAL.* TORONTO, 1ST JANUARY, 1868. 'I,.F I I 2 I 2 2 I Sundries Dr. to Stock, — Cash Wine, 50 pipes, at $350. . . 1st Febraary. Cash Dr. to Wine,— Sold 6 pipes, al $375 The Cash came in, and Wine went out, therefore Cash is Dr. 10 P.D.B 23 23 I 2 2 I I 2 I 2 I 2 Cash Dr. to Wine,— Sold 10 pipes, at $377 1 2th March. Wine Dr. to Cash, — Bought 1 7 pipes, at $366 Here the Wine came in, and Cash went out, therefore Wine is Dr. 30th. Cash Dr. to Wine, — Sold 50 pipes, at $375 2nd April. _ 23 23 Wine Dr. to Cash, — Bought 37 pipes, at $375 »5 Cash Dr. to Wine, — Sold 3 pipes, at $406 Sth May. Cash Dr. to Wine,— Sold I pipe, at $410 . 26 Cash Dr. to Wine—, Sold 5 pipes, at $320 . 23 23 23 23 23 $ 2000 17500 00 00 $ 19500 2250 3770 6222 18750 1387s 1218 410 1600 c. 00 00 00 00 00 00 00 00 00 The Journal, in real busineRii, is now, very properly, falling into disuse,— W. R. ORR. t L. F. (Lodger Folio). P. D. B. (Page Day Book.) Third Set— Jonmal. TORONTO, i6th JUNE, 1868. I..F.| 2 I Wine Dr. to Cash, — I ! Bought 18 pipes, at $325 .... Do. 5 do., „ 355 .... I 2 I 2 1 8th. Cash Dr. to Wine, — Sold 2 pipes, at $365 . 30th. Cash Dr. to Wine, — Sold 10 pipes, at $345 Do. 7 do., „ 376 1st July. _ Balance Dr. to Sundries,- Cash *Wine, 33 pipes 35 KOL. 2 p.d.b: $ c. $ 24 5850 1775 00 00 7625 24 730 24 3450 2632 00 00 6082 24 ! 1 ' 9081 ; "745 1 00 00 20826 00 00 00 00 * In taking Stock of the Merchandize on hand, at the time of closing the Books, the actual number of pieces, or the weight, or measure of all the articles must be accurately ascertained, and calculated at what it cost when laid down in the warehouse. It is only from this data that the Profit or Loss can be fairly calculated. W. R. ORR. ,1 i' ' i I:,' i !■ •' 'I ' I K: ', ! ^ M I '. 1 ■ ' T'"* ' , ' ■■'• ■''■'I rf^ h: :i: iy M\ I r 1 in Ml I .1 mi 36 VOL. I Third Set— Ledger. Dr. STOCK. KOI.. I Ck. i868. 30 To Balance L.F 2 $ 20826 c. 00 2082600 1868. Jan. June July By Sundries . . M Profit & Loss By Balance . . *JF I L.F 2 $ |C. 1950000 1326 20826 20826 00 00 00 Dr. CASH. Cr. 1868. Jan. I Feb. I •> 10 Mar. 30 April May IS 5 i» 26 June 18 •* 30 July To Stock .... „ Wine . . . . II do „ do 1. do II do ... II do II do II do To Balance . . J.F I II >i $ 2000 2250 3770 18750 1218 410 1600 730 6075 3680300 c. 00 00 00 00 00 00 00 00 00 9081 00 1868. Mar. April June June 12 2 16 30 By Wine II do. . II do. . Balance . J.F I II 2 I..F 2 $ 6222 1387s 7625 9081 C. 00 00 00 00 36803 03 Third Set— Ledger. 37 FOL. 2 FOL. 2 Dr. WINE. Cr. i868. Jan. Mar. Apr'l June June July To Stock ,, Cash » do ., do „ Proiit&Loss To Balance .. Ps. so >7 37 83 197 33 J. F. z 2 L. F. 2 X7SOO 6222 13875 7625 1326 46548 "745 1868. Feb. i» Mar. Apr'l May I* June June By Cash do... do do , do do do. do Balance . Ps. 6 10 SO 3 I S a J7 33 Z97 Dr. PROFIT AND LOSS, Dr. 1868. June 30 To Cash . ,, Wine BALANCE. L.F I 2 $ 9081 "745 20826 c. 00 00 00 1868. June 30 By Stock J. F, $ 22SO 3770 18750 X2l8 410 1600 730 607s "745 46548 c. 00 oa 00 00 00 00 00 OS 00 Cr. 1868. June 30 To Stock .... L. F. I 1326 c. 00 1868. June 30 By Wine .... L. F. 2 1326 C. 00 Cr. L.F I $ 20826 20826 C. 00 00 iH . I, ;! ! 1' I .v.: I i I' J'l ' IS I Mi If ; ' . ' mi w '.It. i I 38 BOOK-KEEPING-. , * FOURTH SET. II.,, i l: ! I ■ :: : CASH ACCOUNT, WITH A GENERAL GOODS ACCOUNT. In those trades in which goods are sold in small quantities, it is impossible to keep an account of every article sold, so as to be able to balance the different kinds of goods, by the quantity received and given out, as appearing on an inner column of the account of them. The description of goods also, in which trades are conducted, may be so numerous, that to attempt to trace every article by entries in the books, would require an expense in clerkship far beyond what the profits would afford ; and create a complexity of books which would rather bewilder the accounts than fulfil the proper objects of Book-keeping. . In such cases it is usual to keep a general account of goods, or to divide them under different heads, and to enter only the va/ue of goods received and given out, disregarding the kinds and quantities. Tlie only variation that this occasions, is that the balance of the goods on hand must be obtained by actual examination of the quan- tity of every kind in the shop or warehouse, and by an estimation of the value of every article. This operation is called taking Stocky and must be performed as often as the trader wishes to know the state of his affairs. In the following transactions nothing is bought or sold on credit, but are all Cash transactions. The accounts, therefore, that are necessary, are merely a Cash Account and a Goods Account, with those fictitious Accounts, such as Stock, Profit and Loss, and Balance, whiclj are necessary for balancing and closing the books. FOURTH SET. 39 Write out the transactions in Set 4 of the Waste Book, as directed in the former Sets. Proceed then to journalize them in the journal. The first entry in the Day Book, which states what you have on hand, enter m the Journal, thus : — Sundries Dr. to Stock, — Cash $ 1598 00 Goods 10088 50 $ 11686 c. 50 Or, more simply, Stock Cr.,— By Cash $ 1598 00 „ Goods 10088 50 $ 11686 I 50 Then proceed to the other entries in their order, taking care to make what comes in always Dr. to what goes out, in the following form: — $ I c Dr. Goods, — To Cash paid Waddell & Co 538 Dr. Goods, — To Cash paid Thos. White, for printing 500 copies Murray's Grammar 225 80 Dr. Cash,— To Goods, amount of this day's sales 136 50 25 'I! ■ ! t \\Mm ii^;!.i. 40 BOOK-KEEPING. WASTE BOOK. TORONTO, 1ST JANUARY, 1868. J.P. I Paid Waddell & C? , (or Goods Here Goods are Dr. to Cash, because Goods came in, and Cash went out. Inventory of my Effects, — I have in ready money $ 1598 00 Goods 1G088 50 Paid Thomas White, for yrinting 500 copies Murray's Granmar Sales this day Here Cash came in, and Goods went out, therefore Cash is Dr. to Goods. Paid John Cummings, for Books, per invoice . . Paid William Wilson, for Binding Sales this day Paid Curry & Co., their account for Books $ c. 1 1686 SO 538 80 225 SO 136 2S 78 60 68 80 6;8 Received for 50 copies Murray's Grammar, at '} 60 c , I 30 45 00 95 i 60 J.p. FOURTH SET. TORONTO, 4TH JANUARY, 1868, Bought from McDonnell & Co., Printing Paper, per invoice, and paid Cash 4 Sold 25 copies Murray's Grammar, for Cash, at 60c 4 C?les this day . - 5 Remitted Wesley & Co., on account of Books. . 5 ^ Received from Wm. McCombe, Belfast, for Goods sold him 5 X. Sales this day 6 Took Stock, and found, — Cash on hand $rgo8 35 Goods do 9987 75 41 $ 138 c. 45 15 00 88 : 2o 2-25 435 318 11896 60 00 80 10 DIRECTIONS. Having thus gone over all the entries in the Day Book, and posted them in the Journal^ take your -Ledger, and open three acccAuits — one of Stock, a second of Cash, and a third of Goods, as formerly. Proceed now to post into the Ledger from the Journal, accord- t ing to the directions given in Set 3. if i • l! 111! E ' l! h i' 42 Book-keeping. Having finished this operation, you are prepared to balance the books ; that is, to ascertain whether you have gained or lost by the transactions. Before balancJi^g each account, make a Trial Balance, as directed in Set 3. Having found this correct, turn now to the Cash Account, and balance it as in all the former Sets. The Goods Account is .-:;lanced differently. You must first insert on the Cr. side of that account the value of the goods on hand. In real business this, as has been said, is ascertained by what is called taking Stock, in which operation the person in busi- ness examines all the goods that he has on hand, and enters them, valued at the price which they cost him, or rather the price that they v/ould bring in the wholesale market. The goods on hand constituted the balance of the Goods Account, and are entered at the bottom of that account, on the Cr. side, " By Balance for Goods on hand." Add up now, as in the Wine Account of the Third Set, the two sides, and the Cr. side being greater, put the difference on the other side, writing before it, "To Profit and Loss." Then open an account for Profit and Loss, and on the Cr. side write, " By Goods," adding the same sum in the money column. We are now prepared to close the books. For this purpose, open, as in Set 3, an account for Balance, and enter in it the Balance of the Cash and Goods Account. The Balance of these accounts appearing on the Cr. side, you put them on the Dr- side of the Balance Account, writing, " To Cash " and " To Goods," adding the sums in which these accounts are credited by Balance. , The first account to be closed is the Profit and Loss, as in Set 3. Fonrth Set— Directions. 43 You next close the Balance Account, as also directed in Set 3, carrying the difference of the two sides to the Stock Account, as there directed. And if the Dr. and Cr. side of the Stock Account be thus made equal, the books have been correctly kept. • QUESTIONS ON THE FOURTH SET! When goods are sold in small quantities, would you keep a separate account for each article sold ? How would you manage ? How, then, would you find the balance of goods on hand ? What is this operation called ? How often must it be performed ? Since, in the following transactions, there is nothing bought or sold on credit, what are the only accounts necessary ? What are you to do after having written the Waste Book ? When you have posted the Journal, what next ? What accounts would you open in your Ledger? How would you balance the Goodr: Account? At what price would you value the m^zd^i on hand? When, upon adding up, you find a difference in the two sides, what do you do with that difference ? In what other account do you enter this ? How do you close the books ? How do you know when they have been correctly kept ? I, ! i|: ! n '< : ",!| 1 1 i' ' .-"i'l K ■' I ; 'Kx i» 'il 1 1 1 FOURTH SET. CASH ACCOUNT WITH A GENEEAL GOODS AOOOUKT, H ■i' J 1.1 :.! li 'ii 1 !i^ 'i^l* ittfH •!■; ! -i ! I 1 f , Fourth Set— Joxirnal 45 TORONTO, 1ST JANUARY, .1868. FOU z L.F. I I 2 2 I 2 I I 2 2 I 2 I I 2 I 2 2 I Sundries Dr. to Stock, — Cash P.D.B 40 40 40 40 40 40 40 40 40 $ '598 10088 c. 00 50 $ 1 1686 538 225 136 78 68 658 30 95 r. Goods I 5° Dr. Goods, — To Cash paid Waddell & Co 80 Dr. Goods, — To Cash paid Thos. White I 50 Dr. Cash,— To Goods, amount of sales this day a Dr. Goods, — To Cash paid John Cumming .... 2 25 60 Dr. Goods, — To Cach paid Wm. Wilson 2 * 8a Dr. Cash, To Goods, amount of this day's sales ,4 ..._. 45 Dr. Cash,— To Goods, i;o copies Murray's Grammar 4 00 Dr. Goods, — To Cash pa'd Curry & Co 60 ' '■ i . M' I Njl M m 1 ft I k i ■ I 46 FOL. 2 Fourth Set— JoTimal. TORONTO, 4TH JANUARY, i868. L.F. 2 I I 2 I 2 2 I I 2 I 2 Dr. Goods, — To Cash paid McDonnell & Co. Dr. Cash, — To Goods, 25 copies Murray's Grammar Dr. Cash,— To Groods, amount of this day's sales Dr. Goods, — To Cash remitted Wesley & Co. Dh Cash,— To Goods received from Wm. Mc- Combe ■ Dr. Cash,— To Goods, amount of this day's sales Dr. Balance, — To Cash ,, Goods P.D.B $ c. $ 41 138 41 >S 41 88 41 22s 41 435 41 318 4» 1908 9987 35 75 1 1896 c. 45 00 20 60 00 80 ID I c. 45 FOL. I Dr. 1868. Jan. ronrth Set— Ledger. m HitU I STOCK Cr. To Balance L.F $ C. 1868. 2 1 1896 10 10 Jan. »> I 6 11896 >> 7 By Sundries . . „ Profit & Loss ,, Balance. J.F I 2 $ 1 1686 209 11896 11896 c. 50 60 10 10 Itm ; i! \ i Dr. CASH. Cr. 1868. Jan. I '» 2 4 99 9f 5 >> >i 7 To Stock Goods do., do . . do., do., do., do.. To Balance .T.F $ c. 1868. I 1598 00 Jan. I «f 136 25 II » 658 45 2 »» 30 00 II 2 IS 00 4 11 88 20 i II »> 435 00 19 5 II 3i« 80 II 6 3279 70 35 1908 By Goods . . do ... , do..., do ... , do ... , do . . . do ... , „ Balance J.F $ I 538 I 225 II 7« II 68 II 95 2 13S II 225 L.F 2 1908 3279 c. 80 50 60 80 60 45 35 70 ?. II !'i«i^ aiM [' II '« ! 48 FOL. 2 Fonrth Set— Ledger. Dr. GOODS It 1868. Jan. I >i II 2 II 4 II s II 6 •* 7 To Stock Cash., do ., do .. do .. do .. do ., do .. „ Profit & Loss To Balance J.K $ c. 1868. I 10088 lo Jan. I II 538 80 2 II 225 SO 4 II 78 60 II II 68 80 II II 95 60 5 2 138 45 11 II 225 bo L.F II 6 2 209 60 45 75 1 1 669 9987 By Cash do . do . do . do . do . do . Balance Dr. PROFIT AND LOSS. 1868. Jan. To Stock . . L.F I $ 209 1868. Jan By Goods Dr. BALANCE 1868. Jan. 6 II II To Cash.. ,, Goods L.F $ C. 1868. I 2 1908 9987 1 1896 35 75 10 Jan. 6 By Stock FOL. Cr. J.F II 2 11 II II L.F 2 $ 136 658 30 M 435 318 9987 1 1669 25 45 00 00 20 00 80 75 45 Cr. L.F 2 $ 209 60 Cr. L.F I $ 1 1896 1 1896 C. 10 BOOK-KEEPIira FOL. 3 :r. $ c. 136 658 30 'd 435 318 25 45 00 00 20 00 80 9987 75 ri669 45 FIFTH SET. EXAMPLES OF PERSONAL ACCOUNTS • - IN ADDITION TO REAL ACCOUNTS. When goods are bought or sold on credit, it becomes necessary, as was explained under Set 2, to keep an account of our dealings with every person with whom we transact business on credit, that we may know what they owe to us, or what we owe to them. The accounts which we keep with other persons are called Personal Accounts, and the rule for keeping them is, that every transaction in which they receive anything from us, or that brings them into our debt, or that takes us out of their debt, is placed on the Dr. side of their account ; and that every transaction in which we receive any- thing from them, or that brings us into their debt, or relieves them from being in our debt, is placed on the Cr. side of their account. We have, therefore, found three kinds of accounts used in Book- keeping, namely, — ist. My, own accounts, called also Real Accounts, which contain accounts of my property divided into as many parti- culars as I find necessary. These are not headed with my name, but with the names of the property, an account of which is to be kept ; — as Cash, Goods, any particular kind of Goods, Houses, Ships, etc., in all of which accounts the kind ot property with which the accounts is headed signifies myself, in regard to such property. 2nd. Accounts of other persons with me, called sometimes Per- sonal Accounts, described above ; and 3rd. Accounts of gains or losses, such as Profit and Loss, Discount, Rent, Charges, etc., all receipts or expenses, for which no direct return is given or received. I t 4 ( i !f ■\ ; 4 '■■ 11 r I M ' t n 4 : '■ .i ". !'■« m 50 Book-keeping. To these is to be added, the Stock and Balance Accounts. These are used merely to show at one view the state of my affairs, at some particular time. The Stock Account, commences with a statement of what I possess on entering into business, and after every balance of my books. The Balance Account shows, on examining the state of my affairs, on the one side, all that I possess, and all that is due to me ; on the other side, all that is due by me to others. These two accounts, therefore, are used merely in commencing or closing a set of books, no entry being made in them between one balance and another. The chief of the accounts called fictitious, more properly ac- counts of gain or loss, is the Profit and Loss Account itself, the others being only subdivisions of it, and being concentrated into it, in balancing the books. DIRECTIONS , Proceed, as in the former cases, to copy the following transac- tions in the Day Book. In posting the Journal, remember that the transactions are upon credit, except when the contrary is specified ; as when it is said. Bought /or Cash, ox Soldy^r Cash; in these cases you jour- nalize as in Set 3, making Cash Dr. when it comes in, and Cr. when it goes out. But when sales are made to persons mentioned, and it is not said that they paid cash, make that person Dr. to the goods sold to him ; and when you purchase goods of any person, and it is not mentioned that you paid cash for them, make yourself, that is, your account of goods. Dr. to that person. When cash is received, while no property is given for it, as gifts or legadf s, make Cash Dr. to Profit and Loss. The Cash came in, therefore it is Dr. ; and as it is clear gain, it is made Dr. to l rofit and Loss Account, which cont withJ payi^ and was establ to thJ to bei Fifth Set— Directions. 51 contains the accounts of gains and losses. When Cash goes out without any return of property that can be added to Stock, as in paying wages, rent, losing money, etc., then Cash is Cr. by Profit and Loss. The Cash went out, therefore it is Cr. ; and as nothing was received for it, Profit and Loss is its Dr. In manufacturing establishments, the wages of workmen are paid for the addition made to the value of the raw material manufactured, and, therefore, ought to be put to tiie debit of the goods on which they are expended. Having finished the Journal, open accounts as before, for Stock, for Cash, and for Goods, and also for every person vho is made Dr. or Cr. in the Journal. You then go over every entry m the Journal in order, as in the former sets, posting" them into their proper ac- counts in the Ledger, every item being posted on the Dr. side of one account, and on the Cr. side of another. Having made a Trial Balance, as in the former sets, proceed to dalance the Cash and Goods Accounts as before, the balance of the Goods Account being the quantity of goods on hand, taken by inventory. Then balance each of the Personal Accounts, adding up the two sides of each, and putting the difference, as before, on the smallest side, saying, " To Balance," if it be added to the Dr. side, and " By Balance," if to the Cr. side. , Add up the two sides of the Goods Account, after the balance of goods on hand has been added to the Cr. side, and put the dif- ference to the smallest side, saying, '* To Profit and Loss," if it be idded to the Dr. side, and ** By Profit and Loss," if it be added to tne Cr. side. Open then a Balance Account, and enter all the balances of the different accounts as before. If the balance of any account stands on the Dr. side, enter it on the Cr. side of the Balance Account, saying, " By ," (the account from which it is taken), and vice versa. ■ ;!■ ■ ! . I ' 1 1 . 1 ■;i ! ! 'i I: it ^^1 'Mil k:. I r :il L •' 11 1, 1 f [ ' 1 \ S; \ <. ;1 1 d '., 'l i| |{ Fiftli Set— Directions. 52 Balance the Profit and Loss Account, placing the difference of the two sides to the Dr. or Cr. of Stock, and post it in the Stock Account. Then balance the Balance Account, placing the differerre of that accoimt also io .^tock .; apd if the two sides of the Si ;.A Ac rouit f re -.:uc ivr ;;he bai mce of laese two accounts is posted, the borks ^si * cai»'^^ct. I !!. /.»■/ ence of ; Stock rerre of ick Ac- posted, BOOK-KEEPING. ON TRACING TRANSACTIONS FROM ONE BOOK TO ANOTHER. It is often necessary to find how a transaction recorded in the Waste book, has been entered in the Journal, or how it has been posted in the Ledger ; or, on the contrary, to trace back so' fntry in the Ledger, to the original record of it in the Waste Book. This is effected by the number of the page, or folic " tl. : book into which any entry is ma.de., being entered upon the bo ic from which it is taken; and also the number of the pago *" t^'^ book from which an entry is posted, being entered in the booK into which it is posted. It is not necessary thus to connect the Waste Book and Journal, because the order of the dates being followed in both books, the date will be sufficient guide from one 'to the other.* But as this order is not followed in the Ledger, it is necessary to connect the entries in the Journal. When, then, an entry is made from the Journal to the Ledger, as above described, it is usual to note on the margin of the Journal, the two or more folios into which the transaction has been posted, and to mark in a column, ruled in the Ledger for that purpose, the corresponding Ledger folio. Entries can be traced from the Ledger to the Journal by the date. Thus : * It is better to enter the page or folio in all cases ; it is a much readier reforence tlun the date. W. R. OEtt. V ;> ii m .111 m, .'F Fifth Set— Directions. 2 17 IN THE JOURNAL. 6 Dr. Cash to Tobacco . $ 100 c. 00 The figures in the margin 17 imply that the Cash Account is in folio 2 of the Ledger, and the Tobacco Account is in folio 17. ' \\ _ i IN THE LEDGER. ■d $ c. 1 Dr. cash. CONTRA. . C% Jan. 6 To Tobacco t 1 »7 $ 100 c. 00 1 $ c. m Dr. tobacco. CONTRA. e». $ c. Jan. 6 By Cash 2 $ 100 c, 00 The number 17 in the column immediately beside the money column in the Cash Account, signifies that the Tobacco Account will be found at folio 1 7 ; and the number 2, in the corresponding column of the Tobacco Account, signifies that the Cash Account is in folio 2.* * This mode of reference, from one account in tlie Lodger to anotlier, is not in accordance with the general practice ; it is the folio of the Journal tliat is entered opposite tlie money ill the Ledger Aooount W. R. ORR. J.F I BOOK-KEEPINa. WASTE BOOK. TORONTO, 1ST JANUARY, 1868. I have on hand, — Cash $1019 50 Goods 4868 45 I Received from John Black & Co., — Goods, as per invoice I ^ Received for Cash sales this day 2 Paid James White, on account ' '2 ^ Received the late Mr. Gordon's Legacy, deducting duty . . . . This sum having been received without any return, it is Journalized —Cash Dr. to Profit and Loss. " a * Received for Cash sales this day 3__ Received from James White, — Edition of Euclid's Elements, per invoice 3 Received for Cash sales this day . 4 " Sold A. Macarthur, — I Euclid $ I 50 I Walker's Dictionary 2 10 6 Spelling Books, at 15 c 90 50 Reading do., ,, 40 c <- 20 00 65 $ 5887 470 52 80 74 54 300 45 24 c. 95 75 87 00 50 85 65 48 50 fi 'M ■ I • fl; m 1 I 60 <,. * BOOK-KEEPING. TORONTO, 4TH JANUARY, 1868. I Paid James White, on account Paid Clerk's Salary, one half year, ending this day .1 $ 160 150 c. 00 00 Nothings bein^ received for Clerk's Balarics, that con be added to the amount of Stock, and the Cash going out, Profit and Loss is Dr. to Cutih. Received for this day's shop aaies . . Remitted John Black & Co., — On account 20 400 5„_- Received from James White, — Spelling Books, per invoice . Received for shop sales this day 6 Received from John Black & Co., — Goods, per invoice Sold A. Macarthur, — 24 Script'.ue Geography, at 10 c $ 2 40 100 MacuUoch's Reading, ,, 60 c 60 00 20 Dictionaries, ,» 50 c 10 00 Paid James White, on account , 6 Paid half year's rent of Warehouse Rents are on tlie same footing with Salaries^ and, therefore, Profit aud Loss is Dr. to Cash for them. II 61 213 45 00 20 SO 60 72 71 200 40 85 00 f! m 4S oo ao 50 60 40 85 00 FIFTH SET. TORONTO, 6rH JANUARY, 1868. 57 Bought a house in Capel Street, and received for my bar- gain This S8O be!J FIFTH SET. !■ i '■ I; 11 W t Ml PERSONAL ACCOUNTS IN ADDITION TO REAL AOCOUKTS. \\ ■ 1 1 I ! «o JOURNAL. TORONTO, 1ST JANUARY, 1868. FOL, I L. F, I I 2 2 2 I 2 2 I I 3 I 2 2 2 I 2 3 2 2 I Sundries Dr. to Stock, — Cash Goods Dr. Goods, — To John Black & Co. I Cash Dr., - To Goods . . Dr. James White, — To Cash Dr. Cash, — To Profit and Loss Dr. Cash,- To Goods , Dr. Goods, — To James White 3 Dr. Cash, — To Goods . . Dr. A. Macarthur,- To Goods Dr. James White,- To Cash Dr. Profit and Loss, — To Cash P.D.B $ c. 55 55 1019 4868 50 45 55 55 55 55 55 55 55 56 56 $ 5887 470 52 80 74 54 300 4S 24 160 150 c. 95 75 87 00 50 85 65 48 SO 00 00 I 2 2 2 3 2 — I D 2 f I D] 3 ' 00 oo Fifth Set— JoumaL TORONTO, 4TH JANUARY, 1868. U V. I 2 2 I 2 2 I 2 2 2 3 2 2 I 3 I I 3 I 2 I 3 Dr. Cash,— To Goods P.D.B 56 "5 Dr. John Black & Co.,— To Cash 56 >; Dr. Goods, — To James White 56 ■; Dr. Cash,— To Goods 56 C Dr. Goods, — To John Black & Co 56 • 6 Dr. A. Macarthur — To Goods 56 6 Dr. James White, — To Cash 56 6 Dr. Profit and Loss, — To Cash 56 6 Dr. Cash,— To Profit and Loss 57 6 Dr. Cash,— To Goods 57 8 Dr. Cash,— To A. Macarthur 57 $ c. FOI„ 2 $ 20 400 II C. 45 00 20 61 I 50 213 I 60 72 71 40 85 200 00 80 31 80 00 64 00 1 ■! Ii., i ill ■';■! • ■ i ; 1 1 * (fl '■■■1 1 \ ■if ' 5 ■ ii'i mi ! I f II il 62 FOL. 3 Fifth Set— Jonmal. TORONTO, 8th JANUARY, i868. L. F. 3 2 2 I I 2 3 I 3 I 2 3 3 2 Dr. A. Macarthur, — To Goods 8 Dr. John Black & Co.,— To Cash 8 Dr. Cash, — To Goods . . Dr. Profit and Loss, — To Cash Dr. Balance, — To Cash „ Goo 82 SSos 5887 1868. Jan. 10 63 FOL. Cr. By Sundries . . „ Balance.... J.F I $ 5887 58S7 5805 c. 95 95 66 I i< ' |1 ' !■■ Dr. CASH Cp. 1868. J.F $ c. 1868. J-F Jan. 1 To Stock 1 I 1019 50 Jan. 2 By Jas. White. I f» „ Goods >i 52 87 t> 4 ,, as. White.. II 2 „ Profit*; Loss >> 74 5° II II „ Profit & Loss II »> ,, Goods it 54 85 II 5 1, .Black&Co 2 ,1 „ do >t 45 48 II 6 ,, as. White.. II 4 „ do 2 20 45 M M ,, Profit & Loss II S „ do »> 61 50 l> 8 „ .Black&Co S 6 „ Profit & Loss it 80 00 II 9 „ Profits Loss >> ,, Goods >f 31 64 L.F 8 „A.Macarthur >> 80 00 II II „ Balance . . ^ »» ,, Goods .... 3 48 87 66 1569 10 To Balance . . 81 ^ Jan. 227 ■ ■ """ $0 80 160 c. CO 00 150 4C0 71 ! 2CO 00 00 85 00 240 40 00 00 227 81 .569 66 u :A !» 1 64 FOI,. 2 Dr. Fifth Set— Ledger. GOODS, i868. Jan. I »» 3 1 j» 9 Jan. lO To Stock . . „ J. Black & Co ,, Jus. White.. ,, Jas. White.. „ J. Black & Co ,, Profit & Loss J.F >» 2 L.F 3 To Balance $ c. 1868. 4868 45 Jan. I 470 75 2 300 65 3 II 20 4 213 60 »> 5 IS3 21 '' 6 >i 8 >> , >» y 6017 86; 1 5594 50 FOL. 2 Cr. By Cash . . . „ do „ do ,, A.Macarthur ,, Cash... „ do ,, A.Macarthur ,, Cash... ,, A.Macarthur ,, Cash ,, Balance . Lk $ I 52 >» 54 >» 45 »» 24 2 20 »f 61 f> 72 >> 31 3 10 >> 48 L.F 3 5594 60x7 87 8s 48 50 45 50 40 64 80 87 50 86 FOL. 3 1868. Jan. Dr. JOHN BLACK & C o. Dr. 1868. Jan. To Cash . „ do. . „ do. . JAMES WHITE J.F $ c. 1868. I >i 2 80 160 71 CO 00 85 Jan. 3 5 3" 85 By Goods ,, do. . . €it 1868. J.F $ c. 1868. J.F $ c. Jan. »» ft 5 8 9 To Cash » do „ Balance . . 2 3 L.F 3 400 240 44 684 00 ooj 35 35 Jr.n. I 6 By Goods M do I 2 470 213 684 35 • 1 Jar. 10 „ Balance . . 44 35 Cr. J.F I 2 $ 30065 II 20 3" 85 1 1868. Jan. »» FOL. 3 Dr. Fifth Set— Ledger. PROFIT AND LOSS, 1868. Jan. i 5 ToCaFh.., „ do . . , ,, do... J.F $ c. 186& I J.10 00 Jan. 2 2 200 cxj' it 6 3 40 CO it 9 If >> 390 00 By Cash „ do .. ,, Goods ,, Stock 65 FOL, Cr. J.F $ I 74 2 80 »> 153 L.K I 82 390, c. so 00 21 29 00 nil:: '« Dr., 1868. Jan. »» If \ Jan. lie A,. MAC ARTHUR. To Goods ,, do .. „ do .. To Balance . . J.F $ c. 1868. I 24 50 Jan. 8 2 72 40 3 10 80 70 >» 9 107 27 70 By Cash . . . ,, Balance Cr. ill J.F 2 I L-.F 80 loo 27 107 70 70 .111 Dr. BALANCE. 1868. Jan. 9 i» »> t> >> I ■' ^ ^ TCash ,, Goods .... ,, A.Macartliur L.F I 2 3 $ - 227 5594 27 5850 10 1868. Jan. ByJ.BlacfcarCo ,, Stock. ,..._... i^ m s 1 '. f\ -H BOOK-KEEPING. If. 1 m SIXTH SET. EXAMPLES OF MY ACCOUNTS. /, E. — /!ia/ Accounts, subdivided into various kinds of Goods; also of Transactions ' by Bills, with Discount, Interest, etc. Copy the Day Book given below, a before. In Journalizing, Credit Stock for all the articles in the inven- tory, and Debit it for all debits due either in Bills Payable or otherwise. Every description of Goods that comes in is Dr. -, and eveiy description of Goods going out is made Cr. In both dases the quantity must be specified. Bills Receivable are Bills for which I am to receive payment, or which are payable to me. Bills Payable are Bills which I am to pay. When I receive a Bill Receivable from any person, in payment of Goods bought by him. Bills Receivable are Dr. to Goods, because the Goods went out, and the Bill came in. When I give my own acceptance or note for Goods, then Goods are Dr. to Bills Payable ; if the Bill was that of another person, previously entered to the debit of Bills Receivable, then Goods are Dr. to Bills Receivable. If the Bill w; s received from a person with whom I have an account towards that account, then Bills Receivable is Dr. to that person ; or if a Bill Receivable be paid to a person with whom 1 have credit, that person is Dr. to Bills Receivable. If I pay my own note, or give an acceptance to such a person, he is Dr. to Bills Payable. vvl not to simply SIXTH SET. 67 When a Bill is purchased for Cash to be remitted, it is usual not to enter the Bill in the Ledger account of Bills Receivable, but simply to make the person to whom it is remitted Dr. to Cash. When one person's acceptance is paid to another person, with both of whom I have accounts, it is usual, instead of passing the Bill through the account of Bills Receivable, to make the person to whom the Bill was paid, Dr. to the acceptor of the Bill. When I get Bills in my possession discounted, /'. |i^ r.F. TORONTO, 1ST JANUARY, 1868. INVENTORY OF PROPERTY. Goods on hand. cwt. qrs. lbs. Alum 7 3 o@ $2 80^ cwt.. Copperas 23 o o ,, l 15 ,1 do. Tobacco 12 I 13,, I 20 „ lb.. Sugar 12 3 o „ 9 00 „ cwt . . Opium 73 ,, 2 45 „ lb.. Galls 146 „ 50 „ do. Clover Seed . . 12 2 o ,, 16 00 ,, cwt.. Corkwood .... 8 tons 5 cwt ,, 104 00 ,, ton . . Barrel Staves . . 26 M. ,, 48 60 ,, M. . . Bottles 8}4 gross, ,, 5 40 ,, gross. Wine 8 pipes port ,, 288 CX3 „ pipe.. do 4 do. ,, ,, 320 00 ,, do. do 36doz.,, „ 9 6o„do2.. do 73 „ „ „ 9 00 „ do. do 109 ,, Cape ,, 4 20 ,, do. do 3 p. Teneriff,, 192 00 „ pipe.. do 4 ,, Lisbon ,, 232 00 ,, do. do 5 bts Sherry „ 252 00 „ bt. . . Carried /onuard $ 21 26 1485 114 178 73 200 858 1263 45 2304 1280 345 657 457 576 928 1260 c. 70 45 60 75 85 00 00 00 60 90 00 00 60 00 80 00 00 00 $ c. J.F. I »> 12076 25 c. 25 SIXTH SET. TORONTO, 1ST JANUARY, 1868. 69 J.F. I » >» >» » I Brought forward Debts due to me, — Reford & Dillon, Wellington St.. .$169 00 Chas. Moore & Co., Wellington St. 290 00 Bills Receivable, — John Wilson's accept., due 23rd ...$140 00 E. & J. Kelly's, „ „ 15th Feb 225 60 John Harding's, „ „ 4th Mar. 71 40 Steph. Delacour's, „ „ 17th „ 200 00 $ 12076 459 Cash on hand Warehouse and Stores, valued at. 637 650 4800 18622 c. 25 00 00 00 00 25 The above inventory of my property must be posted in the Ledger, in the Cr. side of the Stock Account, and in the Dr. side of each of the separate articles of goods, and each of the persons who owes me money, also of the Bills Receivable, the Cash, and the Warehouse and Stores. In Journalizing, therefore, say, — CR. STOCK. By Alum.... , „ Copperas „ &c., &c., &c ., Reford & Dillon „ &c., &c., &c „ Bills Receivable „ Cash „ Warehouse and Stores $ C. $ 21 70 26 45 169 00 637 00 650 00 4800 00 H !■ ' il :r;! S. ;' 11 : .'■' i IMAGE EVALUATION TEST TARGET (MT-3) 4 ^ J^^. 1.0 1.1 1.25 |45 US |Z8 12.5 1^ Ilia 2.0 [40 1.4 1.6 Photographic Sciences Corporalion 23 WiST MAIN STREET WEBSTER, N.V. MSEO (716)«72-4S03 . '^O^ *^>. «^^ 10 I J* F< ' I I »> BOOK-KEEPING-. TORONTO, 1ST JANUARY, 1868. Debts due by me, — To John Boyd & Co., Front St...$ 409 30 „ Morrison, Taylor & Co., Wel- lington St 229 85 „ Glynn, Mills & Co., London, £ng 151 80 List of Bills Payable, — My Promissory Note to Nathaniel Low, at one day's date, pay- able with interest $4000 00 My Acceptance of Johnstone & Co., i9thjan'y 145 05 „ Acceptance to McDonnel & Co., 4th March 688 65 „ Acceptance to Wm. Murray, 13th April 72 80 These are debts due by me, partly in the form of Bills Payable, and partly in the form of Balances against me with persons with whom I have accounts They must be put to the Dr. side of Stock, so that were the Stock balanced, the difference between the two sides would be my net property. In Journalizing, therefore, say Stock Dr. to John Boyd & Co., etc., etc., and to Bills Payable.* * NOTB.— After having carried these Accounts to the Journal in this manner, open an account for each of them in the Ledt^r, and not wait for the transactions which follow. This is what is called opeuinir the Boolu. W. B. OllB. J.F. 2 I :!: SIXTH SET. TORONTO, 1ST JANUARY, 1868. J. P. 2 95 50 45 Received from Antonia Silva & Co., St. Ubes, invoice of Salt, shipped per the " Active," 33 tons, at $20 An invoice is a notice of goods sent ofT to me, stating the kind, quantity and value. As soon as they are sent off to me they are mine. I therefore say \ Salt Dr. to Antonia Silva & Co., because the Salt came in, and I owe Antonia Silva & Co. for it. Bought of George Michie & Co., Front Street, for 3 months' Bill, 70 barrels Lochfine Her- rings, at $4 This and the two following transactions are purchases of goods on credit, we therefore make the different descriptions of goods Dr. to the persons from whom they were purchased. Bought of W. G. Taylor, London, England, 31 days, 4 cases Leghorn Hats, per list Freight and Charges paid by him Commission for purchasing, 2 per cent Bought of Smith & Arthurs, Wellington Street, 3 puncheons of Irish Whiskey, Nos. i to 3, 168 gallons, at $1.10 , Storage charged thereon Paid duty on i pun. Irish Whiskey, 56 gals., at 60 c $33 60 • Permit and Officer's fees i 35 These are expenses adding to the cost of the Whiskey. Irish Whiskey, therefore, is made Dr. to Cosh. $ 660 280 2940 139 58 3138 184 4 34 Tl 00 00 00 20 80 80 20 189 00 95 i : i; i V'. ■ 1 ; ■" 1 , 1 * ' 1 t ■ ; 1 * « i i i '• r. A' 12 BOOK-KEEPING-. TORONTO, 6th JANUARY, 1868. J.F. Sold F. & G. Perkins & Co., Front Street,— I pun. Irish Whiskey, 56 gals., at $1.85 . . Sold Hugh Miller, King Street,— I case Opium, 16^ lbs., at $2.90 per lb. . . Sold for Cash to Edward Grant, — 3 doz. Cape Wine, at $4.50 per doz. 3 doz. bottles under 50 „ „ This is a sale for Cash. The Cash came in, it is there- fore Dr. The Wine went out, it is Cr. ; and Ed- ward Grant's name does not appear in the Ledger so far as this transaction is concerned. He should, how- ever, be mentioned in the Journal,* thus : Cash Dr. to Wine, Sold Edward Grant for Cash. The bottles here go along with the Wine, having been so entered in the inventory ; this is indicated by the word under. Had the bottles been empty, they would have been entered to the Cr. of the Bottle Account. Received from Reford & Dillon, Wellington Street, — 4 casks Brandy, at $266 $ 103 47 13 I 1064 c. 60 85 50 50 15 00 00 * In this, as in nil otlior cAses, it is not necessary to enter Grant's name in tlie Journal, an he paid Cash for the goods ; it is sufficient that his name appear in the record of the transac- tion in the Day Book. W. R. ORR. J.F. 2 c. 60 85 so 50 00 SIXTH SET. TORONTO, 7TH JANUARY, 1868. 73 J.F. 2 2 3 3 3 3 3 Accepted Antonia Silva & Co.'s (St. Ubes) draft at 4 months from 20th December, due 2'^rd ADril. in London $ 660 67 2 c 00^ To accept a Bill or Draft is to put my name upon it, obliging myself to pay it ; Antonia Silva, therefore, is thus paid by a Bill Payable. The draft having been accepted by my signature, went out ; it is there- fore Cr., and Antonia Silva Dr. I say, therefore, Antonia Silva Dr. to Bills Payable. 7 Paid duty on 2 puncheons Irish Whiskey, 112 cals.. at 60 c on Permit and Officer's fees 65 69 106 200 19 I 85 Sold to Smith & Arthurs, (Wellington St.,) I pun. Irish Whiskey, 56 gals., at $1.90 Q 40 Received of F. & G. Perkins & Co., Front St., on account 00 10 Paid duty on Salt, per the "Active" 80 LandinsT and Charges 10 20 28 360 90 Paid Freight and Charges on Leghorn Hats... II 10 Sold Morrison, Taylor &• Co., Front Street,— 6 M. barrel Staves, at $60 CO I ? hi I \v li;' t J 74 BOOK-KEEPING. TORONTO, iiTH JANUARY, 1868. J.F. 3 Received of Hugh Miller, (King Street,) Finlay & Co. 's acceptance at 31 dayr Cash in full of Opium , $ Hugh Miller here pays me partly in a Bill Receivable, and partly in Cash. The Bill and the Cash came in, therefore they are each Dr. to Hugh Miller. 12 .1, Sold J. E. Smith & Co., (Church St.,) at 2 months, — 2 pipes of P. Wine, at $336.00... $672 00 19 doz. Cape do., " 4.60... 87 40 19 " bottles under " 50... 9 50 8^ gross empty bottles, at 6.00... 51 00 (See c try on 7th, respecting bottles.) \ -n - Bought of Chas. Moore & Co., Wellington Street, at 4 months, 75 barrels Pot Ashes, per invoice, at $18.60 per bbl .13 Sold John Boyd & Co., (Front St.,) at 2^ per cent, for Cash, 14^ cwt. Copperas, at $1.30 As John Boyd & Co. did not pay Cash for this they are charged with the whole amount, if they had paid Cash the 2^ per cent, would have been entered and deducted.— W. R. O. .14 40 7 47 819 1395 18 Accepted Reford & Dillon's (Wellington H ^t.) draft at 90 days, due loth April \ 1064 c. 00 85 90< OOt 85: GO. c. oo 85 90< SIXTH SET. TORONTO, 14TH JANUARY, 1868. 76 j.p, 4 Accepted Smith & Arthur's (Wellington St.) draft, at 2 months, due i6th March 15 Paid George Michie & Co., Front Street, Delacour's Acceptance $200 Cash in lull of Herrings 80 I owed George Michie & Co. $280, and having Dela- cour's acceptance, or Bill Receivable, as staled in the Inventory of my property, I gave that in part payment, and gave Cash for the remainder. I therefore say, George Michie & Co. Dr. to Bills Receivable and to Cash. 16 Sold for Cash to Mendicity Institution, 20 bbls. Herrings, at $5 16 Sold for Cash to A. Macarthur, 12 lbs. Nut Galls, at S3c .17 Sold Morrison, Taylor & Co. (Front St.) 6i days, 12 tons St. Ubes Salt, at $25 -17 Sold John Boyd & Co. (Front St.) at 2^ per cent, for Cash, — 5 cwt. Alum, at $ 2.60 $ 13 00 10 M, Staves, „ ^0.00 600 00 3 cwt. Cloverseed, „ 20.00 60 co $ I c, 189 00 280 00 100 300 673 00 36 00 00 I hif ; f I;' s; n J.F. 4 BOOK-KEEPING: TORONTO, 17TH JANUARY, 1868. Received of Morrison, Taylor & Co., Front Street, in payment of Salt, J. Tottenham's note, due 4th February $160 | Cash 137 I Discount, 2 months' Interest 3 1 This Salt was sold for the $300, but not to be paid for two months. (See former entry.) Morrison, Taylor & Co. offer to pay me immediately, if I will allow them interest for their money for two months, and take as part of it a Bill due in about a fortnight, which I agree to. I therefore Cr. Morrison, Taylor Sc Co. by the Bill Receivable, by Cash, and by the Dis- count, which three items make up the whole sum. .17 Received of Morrison, Taylor & Co., Front Street, Cash on account 19. Remitted W. G. Taylor (London, Eng.,) on account of Leghorn Hats, my note, payable at Glynn, Mills & Co., 31 days I owe W. G. Taylor money, and I draw a promissory note, binding myself to pay him $2cxx) in 31 days, which I send him. This is a Bill Payable, I there- fore make him Dr. to Bills Payable. -I9. Paid my acceptance to Johnstone & Co., due this day This acceptance is one of the Bills Payable, mentioned in the inventory of my property. It became due, and I paid Cash for it. The Cash goes out, it is therefore Cr. ; the Bill comes in, it is Dr. I say Bills Payable Dr. to Cash^ $ C. J.; 300 00 80 00 2000 00 145 05 \ oo oo J.F. 5 SIXTH SET. TORONTO, 2TST JANUARY, 1868 Paid Saml. Booth, Adelaide Street, for Altera- tions made in Store, per agreement ■ - ♦ -^3 . Sold Morrison, Taylor & Co., Front Street, for 3 months' bill, — 12 bbls. Potashes, at $ 7.00 $ 84 00 15 „ Herrings, „ 5.20 78 00 10 M. Staves, ,, 60.00 600 00 10 tons Salt, „ 25.00 25000 23 Sold for Cash to Lyman, Elliott & Co., King Street, — 40 lbs. Opium, at $2.60 $104 00 so „ Galls, „ 55 27 50 8^ cwt. Copperas, „ 2.00 17 00 I cask Brandy, „ 348 00 24 Sold J. E. Smith & Co. (Church Street,) at 3 months, — I cask French Brandy $ 350 90 I hhd. Sugar, 1200 lbs., at 9c... 108 00 3 pipes Port Wine, at $340.00... 1020 00 30 doz. Cape „ „ 4.30... 129 00 77 $ 60 1012 496 1607 c. 00 00 50 90 nn i * ^'i 1'! ' / ■,-. ■ • ■ 'i-f' 1 in '•u ■fi [I W BOOK-KEEPING. TORONTO, 25TH JANUARY, i868. J.F. 5 '\ Drawn on- J. E. Smith & Co. (Church St.,) in favor of Reford & Dillon (Wellington St.,) at 31 days , $1128 00 Discount allowed by Reford & Dillon, for prompt payment 10 00 owe money to Reford & Dillon ; J. E. Smith & Co. owe me money ; I therefore draw a bill on J. E. Smith & Co., in favor of Reford & Dillon, which is in effect a direction to J. E. Smith & Co. to pay the money to Reford & Dillon on my account. But I thus pay Reford & Dillon before the money was due, and they allow me discount for prompt payment. If this transaction was entered fully, I should make Bills Receivable Dr. to J. E. Smith & Co., and Reford & Dillon Dr. to Bills Receivable ; but the usual method is to make Reford & Dillon Dr. to J. E. Smith & Co., by which the two entries on the Bills Receivable ac- count are avoided. -25 Remitted Glynn, Mills & Co., (London, Eng.) Thos. Hodgen's draft on Hilton & Co., at 61 days, bought of Royal Canadian Bank... I wish to remit money to Glynn, Mills & Co., London. I therefore go to a broker or to the Eiichange and purchase a Bill, payable in London, for the amount. To enter this tulfy, I should first say, Bills Receiva- ble Dr. to Cash, and then Glynn, Mills & Co. Dr. to Bills Receivable. The usual mode, howe>er, is to regard the Bill sent as Cash, and say, Glynn, Mills & Co. Dr. to Cash. $ c. jJ.F. ! 6 1138 00 800 00 c. oo to IJ.F. : 6 SIXTH SET. TORONTO, 25TH JANUARY, 1868. 79 Paid Rent of Warehouse for last month. This and the following entry, being payments of money, without any direct return, or any other person being chargeable with them, may either be put to the Dr. of Profit and Loss, or if I wish to keep a separate account of such charges, I may open an account for Warehouse rent and charges, and make that account Dr. The effect is the same, for that and similar ac- counts of expenses must come into the Profit and Loss account, before the Books are balanced. -29. Paid Postage Account $ 6 70 Twine, Ropes, and Packing cases... 16 60 Clerk's Salary 20 00 Porter's Wages 6 40 -29 Deficiency in settling Cash, supposed lost. Here the Cash went out, it is therefore Cr. ; but as it was lost, it is credited by Profit and Loss, say. Profit and Loss Dr. to Cash. -29 Sold John Boyd & Co., (Front St.) 50 bbls. Pearl Ashes, now on their way from Goderich, deliverable 3 days after arrival, at $20 per bbl $ ; C. 30 I 00 49 Received Invoice from Reford & Dillon, Wellington Street, of Pearl Ashes shipped i} from Goderich, per Grand Trunk, ico bbls., Ij at $17.50 1750 .29 I coo 70 00 OS 00 1 ■I f • ^i=.! ^1 80 J.F. BOOK-KEEPINa. TORONTO, 30TH JANUARY, 1868. Received from John Boyd & Co. (Front St.) J. Wilson's note, 4th March $ 62 00 Wm. Kelly & Son's acceptance, 3rd April 400 CO Thos. Hodgen's acceptance, nth April 150 00 E. Carpenter's note, 20th April... 100 00 Cash on account of Ashes Discount allowed, 2 months' interest on Cash John Boyd & Co, owe me money, they pay me in part with Bills on the persons mentioned, partly in Cash, and I allow them interest for the Cash, because it was paid before it was due ; therefore John Boyd & Co. Cr. by Bills Receivable, by Cash, and by Dis- count. 3 1 _- Discounted at Royal Canadian Bank, — E. & J. Kelly's acceptance, 15th February $225 60 John Harding's acceptance, 4th March 71 40 John Tottenham's acceptance, 4th February 160 00 Wm. Kelly & Son's acceptance, 3rd April 400 00 857 00 Interest per docket 8 12 I have these Bills in iriy possession, which are not yet due ; but I want the money immediately. I there- fore take them to a Banker, who gives me the money, deducting the interest for the time they have to run. The Bills went out ; therefore Bills Receivable is Cr. first by the Cash received for them, and secondly by the Discount or Interest. (Note.— Perhapa the more general practice now is to Dr. Cash Account with the full amount of the Bill Receivable, and Or. the Bills Receivable Account by Cash for the like amount ; then Cr. Cash by the Discount, and Dr. the Discount Accouift to Caah.-W. R. O.) • T c. IJ.F.I 1 6 712 88 800 CO 00 90 90 848 88 c. oo oo 90 90 IJ.F. SIXTH SET. TORONTO, 3 1 ST JANUARY, 1868. Remitted Glynn, Mills & Co., (London, Eng.) James Hamilton's draft on Jones, Lloyd & Co..., $840 00 Discount ^ per cent, received ^ 4 20 Having occasion to remit money to Glynn, Mills & Co., London, I purchase a Bill on Jones, Lloyd & Co., London, lor $840, but I pay only $835.80 for it. I may either make, first. Bills Receivable Dr. to Cash and to Discount, and then make Glynn, Mills & Co. Dr. to Bills Receivable for the whole sum ; or I may make Glynn, Mills & Co. Dr. to Cash and to Dis- count, and not enter the Bill in the account of Bills Receivable. .31 Received payment of John Wilson's accept- ance, due 23rd inst This was a Bill in my possession, which, after falling due, was paid ; the Cash came in, it is therefore Dr. , and the Bill went out. Cash is Dr. to Bills Receiva- ble. 81 !f| ■•1 iH ■ n 'U\ 82 J. P. ill: BOOK-KEEPING-. TORONTO, 3 1 ST JANUARY, 1868. Error in charging Morrison, Taylor & Co., Front St., Pot Ashes, 23rd Jan., 12 bbls. at $7, instead of $19, say $12 per bbl In this entry an error has been detected in the Books, and the mode of correcting errors is not to make era- sures, but to make additional entries of an opposite kind. In this entry, goods sold had, by mistake, been charged too little ; the person who bought them must therefore be made Dr. to the kind of goods bought by him, for the amount of the error. -31 Drawn on J. E. Smith & Co. (Church St.) in favor of W. G. Taylor, London, Eng., at 31 days, for $1128 00 Discount allowed for prompt pay- ment 10 00 (See a similar entry on January 25.) 31 Error discovered in placing to the account of Smith & Arthurs, Wellington Street, i pun. Irish Whiskey, sold to F. G. Perkins & Co., Front Street, on Jan. 9th When one person is thus by mistake debited instead of another, Cr. the person so charged, by Error, and Dr. the person who ought to have been debited, To the goods sold ]|im. The only alteration in the Real Account credited is, to draw the pen through the name of the person erroneously entered, and to write over it the name of the proper person. The amount in the money column remains unaltered. T 144 c. 00 1 138 CO 106 40 00 40 SIXTH SET. 83 J. TORONTO, 3IST, JANUARY, i868. V. $ c. 7 Error in giving credit to Morrison, Taylor & Co., Front Street, for Cash paid by John Boyd & Co.. Front Street, on 1 7th Tanuarv 80 00 This error is similar to the last, and must be corrected in a similar manner. Enter on the Dr. side of Mor- rison, Taylor & Co.'s account, To Error, and Cr. John Boyd & Co. By Cash. On the entry on the Cash Account, draw the pen through the name of Morrison, Taylor & Co., and write John Boyd & Co. over it. 4 1 Inventory of Goods on hand, — $. c. I Ts. cwt. qr. Iba. 8 Alum 2 3 o@$ 280^ cwt. 7 70 Tobacco .. 12 5 ,, I 20 „ lb.. 1446 00 Opium l6i ,, 2 45 ,, do.. 40 42J Galls 84 ,, 50 ,, do.. 42 00 Cloverseed . 9 2 ,, i6 00 ,, cwt. 152 00 Corkwood .8500,, 104 00 ,, ton. 858 00 Wine, 6 pipes Port, ,, 288 00 ,, pipe 1728 00 Do. I do. do. ,, 320 00 „ do.. 320 00 Do. 73 doz. do. ,, 9 00 ,, doz. 657 00 Do. 36 do. do. „ 9 60 ., do.. 345 60 Do. 57 do. do. „ 4 20 „ do.. 239 40 Do. 3 pipes Teneriffe, ,, 192 00 ,, pipe 576 00 Do. 4 do. Lisbon, ,, 23'? 00 ,, do.. 928 00 Do. 5 butts Sherry, ,, 252 00 ,, butt 1260 00 Salt, II tons, ,, 20 63 ,, ton. 226 93 Herrings, 35 bbls., ,, 4 00 »> ^^1. 140 00 Leghorn Hats, 4 cases, „ 791 52J each. 3166 10 Irish Whiskey, 56 gals., „ I 75 ^|? gal. 98 00 Brandy, 2 casks, ,, 266 00 each. 532 00 Ashes, 63 bbls., „ i860 do. 1171 80 Do. 50 do. „ 17 50 do. Carried forward . . . 875 00 14809 %i ! I' i . ' I .; ■i 'f i' ■M If^' 84 J.F. 8 >» >» » » >» BOOK-KEEPING-. TORONTO, 3 1 ST JANUARY, i868. Brought forward : Bills Receivable on hand, — Finlay & Co.'s acceptance $ 40 00 James Wilson's note, 4th March... 62 00 Thos. Hodgen's do. nth April... 150 00 fe. Carpenter's do. 2 h do. ... 100 00 $ 14809 : 352 Cash on hand 612 Warehouse and Stores, valued at 1 4860 20634 c. 95y. 00 CO i4>^ I J.F. 8 >» >> >> » >> >> >> » This is an inventory taken as a preparation for balancing the books, Balance is made Dr. to all goods, and property of every description, remaining in my possession. The property in this case consists of the various kinds of Goods enumerated, of Cash, of Warehouse, of Bills Receivable, and of debts due to me. Each description of goods for which an account has been opened is credited. By Balance, for the quantity and value on hand ; also Cash for the Cash on hand ; and Warehouse and Stores, for the value of them ; Bills Receivable, for the whole amount of Bills in one sum ; and persons, for the sums due respectively by them. 8 n ft List of debts due to me, — F. &G. Perkins & Co $ 10 Morrison, Taylor & Co 1286 JohnBoyd & Co 401 J. E. Smith & Co 171 Glyhn, Mills & Co 1488 00 15 65 80 20 3357 23991 80 94?^ r SIXTH SET. 85 c. oo 19 00 IMJ the TORONTO, 3 1ST JANUARY, 1868. J.F. 8 List of debts due by me, — Reford & Dillon $ 443 00 Chas. Moore & Co 1105 00 List of Bills Payable, — My Note to N. Low, i day's date.$4ooo 00 Accept. toM.Donnell& Co. 4th Mar. 688 65 Wm. Murray, 13th April. 72 80 A. Silva & Co., 23rd do. 660 00 Reford&Dillon, lothdo. 106400 Smith & Arthurs, 16 Mar. 189 00 Do. Do. Do. Do. Do. „ W. G. Taylor, 22nd Feb. 2000 00 $ 1548 8674 10222 c. 00 45 45 From my property must be deducted debts due by me. This is done by making them Dr. to Balance. The debts here are balances of accounts not settled, and Bills Payable. Balance is made Cr. by each of the persons to whom I owe money ; or, what is the same thing, each person is made Dr. to Balance for the amount of what I owe him, and Bills Payable are made Dr. in one sum for all such bills still remaining unpaid. I h i WMu •'. U ■1' li l\ 86 BOOK-KEEPINa i«- I TORONTO, 31ST JANUARY, 1868. The Journal being written according to the directions given, the Ledger must be posted from it. Then, before entering the Balance of the Goods, &c., on hand, according to the Inventory, make the trial balance. Enter then, from the Inventory, the Balances of Goods on hand to the Cr. side of each account ; this ought to agree with the balance found by comparing the quantities on each side, as in Set 3.* Proceed to balance and close the Cash Account and Personal Accounts, the difference between the two sides being entered. To or By Balance, t Close the Real Accounts by entering the difference between the two sides, To or By Profit and Loss. Close also, in the same manner, the accounts of Discount or Interest, Charges, &c. Collect now all the balances upon a separate sheet of paper, ruled like the Ledger, as directed in former sets ; and whenever the Balance is entered on the Dr. side, to make the sides equal, enter it on the Cr. side of the Balance Sheet, and vice versa. Proceed now to close the Profit and Loss Account. Enter in the difference between the two sides, To or By Stock for my gain or loss, as the case may be, and write the same sum on the opposite side of the Stock Account, To or By Profit and Loss. Close now the Balance Account, entering the difference. To or By Stock for my net estate, entering the same sum on the opposite side of the Stock Account, To or By Balance. The two sides of the Stock Account should now be equal, which closes the books ; if the sides be not equal, an error has been committed, which must be searched out and corrected. * I have not carried the quantities of Goods to their respeoti\-e accounts in this set ; a Stock Boolt should be Icept, in which to enter the Ooods on hand, and thoM bought and sold. t Not To Balance— so far as the Cash Account is concerned— See fonier note, page 8. W. R. ORR. Sixth Set— Questioiis. 87 QUESTIONS ON THE SIXTH SET. Of what accounts are there examples given in this set ? In journalizing, for what do you debit and credit Stock ? Wlien goods come in. are they Dr. or Cr. ? What are Bills Receivable, and Bills Payable ? When you receive a Bill Receivable in payment of goods, how would you enter it ? When are goods Dr. to Bills Payable ? When to Bills Receivable ? What if the Bill was received from a person, with whom you have an account towards that account? What if a Bill Receivable is paid to a person with whom you have credit? What is done when a Bill is purchased for Cash to be remitted ? What is done when one person's acceptance is paid to another, with both of whom you have accounts ? What do you mean by getting Bills discounted ? What is done when a person pays an account partly in Cash, and partly in Bills? How are transactions traced from one book to another ? ill 1 , ! .'i 'I m ii .i| ' * I hi I !!«; 88 SIXTH SET. REAL ACCOUNTS SUBDIVIDED INTO VARIOUS KINDS OF GOODS; ALSO OF TRANSACTIONS BY BILLS, WITH DISCOUNT, INTEREST, &c.. FIRST, EACH TRANSACTION SEPARATELY JOURNALIZED. 11 N. B. — This Set of books being of the greatest value to the learifr, as its transactions are of a varied and practical nature, more so than any set in any author I have ever seen. I have journalized and posted the transactions according to the original, viz : each transaction separately. I have then made out separate books for each kind of trans- action, viz : Cash Book, and Bills Receivable and Payable Books, in which are collected all the transactions in Cash and Bills, and have entered the Credit transactions only in the Day Book. (It will be understood that in this case I use the original entries merely as a Waste Book).* I then collect from the various books all the trans- actions into the Journal. * All the transactions should be transferred to a Waste Book prepared by the pupil, before proceeding with this Set by the collected method ; he should also prepare his Cash Boole and Bill Books, also a Cash Book and Waste Book for the Fifth Set, Single Entry. And as he trans- fers the entries from the newly made-out blotter, he should enter in the margin the initials representing the names of the Subsidiary books into which he has taken the respective entries —thus : C. B. (Cash Book), D. B. (Day Book), B. R. (Bills Receivable), B. P. (Bills Payable), of course the folio No. of these books should be entered as usual in the column for that purpose in the Blotter or Waste Book. W. R. ORR. Book-keeping— Sixth Set. •'^•> This form will give the learner an insight into the mode pur- sued by some of the best wholesale houses, and is adopted and recommended as the best method by Morrison and others; but daily posting is perhaps, after all, the easiest and surest. W. R. ORR. ['I 'i I ■ It .it. It. -ri ! •f, 1 1. • :,!" ■ii.i] 90 JOURNAL. Bl! < ! FOL. I L.F. I >> >> >> 2 >» >» 3 »> >i »> 4 ft >> I 5 M TORONTO, 1ST JANUARY, i868. Cr. Stock,— By Alum Copperas ' Tobacco Sugar Opium Galls Cloverseed Corkwood Barrel Staves Bottles Wine Reford & Dillon, Wellington St. Chas. Moore & Co., Bills Receivable Cash Warehouse and Stores do. Dr. Stock,— To John Boyd & Co., Front St „ Morrison, Taylor St Co., do ,, Glynn, Mills & Co., London, Eng. „ Bills Payable, P.D.B $ c. $ 68 »> 21 70 »» 26 45 »» I48S 60 >> 114 75 »> 178 85 >> 73 00 200 00 II 858 00 »> 1263 60 11 45 90 II 7808 40 69 169 00 II 290 00 >l 637 00 II 650 00 11 4800 00 18622 70 II 409 30 »l 229 85 II *Si 80 790 II 4906 5697 25 95 _5o 45 6 6 7 4 25 95 JO 45 Sixth Set— JoTirnaL TORONTO, 2ND JANUARY, i868. L.F. 6 6 6 7 8 7 7 4 8 7 8 2 4 3 4 8 6 6 7 4 Cr. Antonia Silva & Co. St. Ubes By Salt Cr.GeorgeMichie&Co.FrontSt By Henings P.D.B 71 71 Cr. W. G. Taylor, London, Eng. | 71 By Leghorn Hats ...__ 4 Cr. Smith & Arthur, Wellington Street By Irish Whiskey 4 Dr. Irish Whiskey, — To Cash paid duty .... 6 Dr.F. &G.Perkins &Co.Front-st. To Irish Whiskey 6 Dr. Hugh Miller, King-st, — To Opium 7 Dr. Cash,— To Wine sold E. Grant. Cr. Reford & Dillon, Wellington Street By Brandy 7 Dr. Antonia Silva & Co. St. Ubes To Bills Payable accepted their draft 23rd April Dr. Irish Whiskey, — To Cash paid duty 71 71 72 72 72 72 73 73 $ 91 FOI.. 2 $ 660 280 3138 189 34 103 00 00 00 00 95 60 47 ' 85 00 1064 I 00 660 69 00 85 h' ' 1 1 92 Sixth Set— Journal. VOL. 3 »-v s i I TORONTO, 9TH JANUARY, 1868. L.r. 8 8 4 6 4 7 4 5 3 8 4 4 9 3 3 4 9 4 6 Dr. Smith & Arthurs, Wellington Street To Irish Whiskey Cr. F. & G. Perkins & Co. Front-st By Cash on account .10 Dr. Salt,— To Cash paid duty. 10 Dr. Leghorn Hats, — To Cash paid Freights, &c. II Dr. Morrison, Taylor & Co., Front Street. To Barrel Staves II Cr. Hugh Miller, King Street. By Eills Receivable ,, Cash 12. Dr. J. E Smith & Co., Church-st. To Wine „ Bottles, S}4 gross 13. Cr. Chas. Moore & Co., Wellington Street. By Potabhes 13. Dr. John Boyd & Co., Front-st. To Copperas H. Dr. Reford & Dillon, Wellington Street. To Bills Payable P.D.B 73 73 73 73 73 74 74 74 74 74 $ 40 7 768 51 c. $ 106 200 20 28 360 00 85 47 90 00 819 1395 * 18 1064 40 00 90 10 00 8S 90 00 85 CO 4 7 4 2 5 6 5 I 3 2 4 4 9 5 10 40 oo 90 10 00 85 90 00 85 CO L.r. 8 4 4 4 7 4 2 5 6 5 I 3 2 4 4 9 5 10 7 6 Sixth Set— Journal. TORONTO, 14TH JANUARY, 186B. Dr. Smith & Arthurs, ^^«ellington Street. To Bills Payable '. 15 Dr. George Michie & Co., Front Street. To Bills Receivable „ Cash , Dr. Cash, To Herrings . 16. Dr. Cash, To Galls 16 17. Dr. Morrison, Taylor & Co., Front Street. To Salt 1 7 Dr. John Boyd & Co., Front-st. To Alum ,, Barrel Staves „ Cloverseed 17 Cr. Morrison, Taylor & Co., Front Street. By Bills Receivatle ,, Cash ,, Discount 17. Cr. Morrison, Taylor & Co., Front Street. By Cash on account 19 Dr. W. G. Taylor, London, Eng. To Bills Pa ) able P.D.B 75 75 75 75 75 75 $ 76 76 76 200 80 600 60 160 137 3 rou 4 c. $ 189 00 00 280 1 1 100 i ! i 1 1 6 1 i 300 00 00 00 673 00 . 00 00 300 80 2000 00 00 CO 36 oo 00 00 00 9'\ 1 I 00 » >•«. ! / 94 FOL. 5 Sixth Set— JonrnaL TORONTO, 19TH JANUARY, 1868. L.F. 6 10 5 10 9 7 3 6 10 2 2 I 8 9 8 2 3 4 9 9 5 10 Dr. Bills Payable,— To Cash, paid my acceptance to Johnstone & Co 21 To Warehouse & Store, — To Cash for alterations -_23. Dr. Morrison, Taylor & Co., Front Street. To Potashes , „ Herrings , ,, Barrel Staves , „ Salt 23.. Dr. Cash, — To Opium . . 1 „ Galls . . . „ Copperas ,, Brandy . .24 Dr. J. E. Smith & Co.Church-st. To Brandy „ Sugar ,. Wine .25 Dr. Reford & Dillon, Wellington Street. To J. E. Smith h Co., Church-st., for his acceptance 31 days ,. Discount in full 25. Dr. Glynn, Mills & Co., London, Eng. To Cash paid for Hodgen's draft on Hilton k Co., 61 da}rs P.D.B 76 76 77 77 77 78 78 ^ 84 78 600 250 104 27 17 348 350 c. 00 00 00 00 00 50 00 00 90 108 I 00 1 149 1128 10 00 CO 00 145 60 IOI2 496 I 1607 1 138 800 c. OS CX} 00 50 00 00 00 1 1 Sixth Set— Jourual 95 05 00 00 50 00 CXJ TORONTO, 25TH JANUARY, 1868. L.F. 9 10 9 10 10 Dr. Rent and Charges, — To Cash paid rent of Warehouse 29 Dr. Rent and Charges, — To Cash paid postage, twine, pack- ing cases, etc . ,, Cash, paid Clerk and Porter's wages »9 4 9 10 10 5 9 5 4 10 9 4 10 9 Cr. Reford & Dillon, Wellington Street. By Ashes .29 Dr. Profit and Loss, — To Cash, supposed lost . .29. Dr. John Boyd & Co., Front-st. To Ashes 30. Cr. John Boyd & Co., Front-st. By Bills Receivable ,, Cash „ Discount 31 Cr. Bills Receivable, — By Cash for four bills . . . . ,, Discount for Interest. . 3» 10 9 Dr. Glynn, Mills & Co., London, Eng. To Cash paid for Draft , ,. Discount received , P.D.B 79 79 79 79 79 80 80 81 $ 23 26 712 88 00 848 8 83s 4 30 40 00 00 90 88 12 80 20 FOL. 6 T 30 49 1750 1000 800 857 840 c. 00 70 00 05 00 90 00 00 I ! f i i I t ^'i! l].' '• 96 roL. 7 Sixth Set— Journal. TORONTO, 3 1 ST JANUARY, i868. lo 4 5 9 7 9 8 8 Dr. Cash, — To Bills Receivable, received pay- ment of Wilson s acceptance .... 31 P.D.B 8l $ Dr. Morrison, Taylor & Co., Front Street. To Ashes, for error in charging 12 brls, at $7.00 instead of $I9.(X) 23rd January 31 Dr. W. G. Taylor, London, Eng To J. E. Smith & Co., Church-st., for their acceptance 31 days. . ,, Discount in full .31 Cr. Smith & Arthur, Wellington Street. By F. & G. Perkins, for i pun. Irish Whiskey charged them in error 9th January 3r Cr. John Boyd & Co. Front-st. By MoiT-ison, Taylor & Co., Front Street, for Cash credited in error 82 82 1 128 ID 00 00 82 83 $ 140 00 144 ou 1 138 00 106 40 80 00 L.F. II c. oo oa oo 40 00 L.F. II I I 2 2 2 3 3 6 7 7 7 8 9 4 10 5 8 5 5 9 5 II 4 4 Sixth. Set— Journal. TORONTO, 3 1 ST JANUARY, 1868. . 9T FOL. 8 I', I lbs. It >> 3qrs. o o „ 5 „ 84 » Dr. Balance, — To Alum 2 cwt Tobacco . . 12 Opium .... Galls .... Cloverseed. 9 Corkwood, 8 tons 5 cwt o qrs o lbs Wine, 19 pipes, 166 doz, Salt, 1 1 tons Herrings, 35 bbis ,, Leghorn Hats, 4 cases . Irish Whiskey, 56 gals. . Brandy, 2 casks Ashes, 113 bbls P.D.B 83 Bills Receivable Cash Warehouse and Store . . F. & G. Perkins & Co. Morrison, Taylor & Co „ John Boyd& Co „ J. E. Smith & Co „ Glynn, Mills & Co 31 Cr. Balance, — By Reford & Dillon . . ,, Chas. Moore & Co „ Bills Payable >• II II II II II II II II II II 84 II II II 85 •I $ 7 1446 40 42 152 858 6054 226 140 3166 98 532 ■2046 10 12S6 401 171 1488 443 1105 70 00 42i 00 > 31 ' J.F $ C. 1868. To Sundries. „ Balance . I L.F II 5697 13769 45 49i* Jan. I 31 19466 94^ i Feb. I By Sundries .. ,,Proiit&Loss By Balance . . 'II * I 1 1 18622 L.F j 10 I 844 19466 13769 C. 25 69! 94* 49J Dr. ALUM, Cr. 1868. J.F $ c. 1868. J.F $ c. Jan. I To Stock I 21 70 1 Jan. 17 By J. Boyd & Co 4 13 00 » 31 ,, Balance . . 8 L.F 7 70 # 21 70 1 31 ,, Profit & Loss 10 I 21 00 70 Feb. I To Balance . . 7 70 i Dr. COPPERAS Cr. 1868. Jan. I )> 31 To Stock .... ,, Profit & Loss J.F $ c. 1868. I 26 45 Jan. 13 L.F >> 23 ID 9 35 40 8SJ By J. Boyd & Co ,, Cash J.F $ 3 5 18 17 35 c. 8s 00 8S Dr. TOBACCO • ( Cr. 1868. J.F $ c. 1 1868. J.F $ c. Jan. I To Stock I 1485 60 j Jan. 31 By Balance . . 8 L.F 1446 00 >» M ,, Profit&Loss ID 39 60 - 1485 60 148s 60 Feb. 1 To Balance . . i 1446 00 * Fractions of cents are not usually carried throuy:h the books in actual business, but as the i cent, in this case, occurred in calculatin;; the balances on hand, I have allowed it to pasM throuifh the accounts, as it may serve the purpose of exempllfyiug, to the pupil, the exactiiesH of the science. (Sec also Stoclt Account, Sixth Set collectedly.) W. R. ORB. |..i ■ il'-'f I 1^' I 6 ! 'I i ! I '}}' 1' i ! ( V' *■ fe ; 1 1 I ail 100 VOL. a Sixth Set— Ledger. Dr. SUGAR, FOL. 3 Cr. i868. Jan. To Stock J.F I $ 114 114 t868. Jan. By J. E. Smith & Co .... ,, Profit & Loss J.F $ s io8 L.F lO 6 "4 c, oo 75 75 Dr. OPIUM. Cr. i868. Jan. Feb. J.F $ C. 1 1868. To Stock .... „ Profit & Loss I L.F lo 178 13 85 42J Jan. >i »» 6 23 31 \ 192 27J To Balance . . 40 42i By PL Miller.. ,, Cash ,, Balance . . J.F $ 2 47 5 104 ^ 40 1 192 85 00 42J 27i Dr. GALLS, Cr. 1868. J.F $ C. 1868. J.F $ c. Jan. 1.* I 31 To Stock ,, Profit & Loss I L.F 10 73 2 75 00 86 86 Jan. >> 16 23 31 By Cash II do , , Balance . . 4 6 27 42 75 36 50 00 86 Feb. I To Balance . . 42 00 Dr. CLOVER SEED. Cr. 1868. J.F $ C. 1868. J.F $ c. Jan. i> I 31 To Stock .... ,, Profit & Loss I L.F 10 200 12 212 00 00 00 Jan. 11 17 31 By J. Boyd & Co ,, Balance 4 8 60 152, 212 00 oo oo Feb. I To Balance . . 152 00 $ io8 6 "4 C. oo 75 75 $ c. 47 85 104 00 40 42i 192 27J $ C. 60 CX) 152, oo 212 00 roL. Dr. Sixth Set— Ledger. CORKWOOD. 101 FOL. Cr. 1868. J.F $ c. 1868. J.F $ c. Jan. I To Stock I 858 00 Jan. 3» By Balance . . 8 858 00 Feb. I To Balance . . 858 00 i Dr. BARREL STAVES. Cr. 1868. J.F $ C. 1868. c. 1 J.F $ c. Jan. *> I 31 To Stock „ Profit&Loss I L.F 10 1263 296 60 40 00 Jan. »» >> II 17 23 By Morrison T. & Co ... . „ J. Boyd & Co ,, Slorrison.T. & Co .... 3 4 5 1 360 600 600 00 00 00 1560 1560 00 Dr. BOTTLES. Cr. 1868. J.F $ c. IS6S. J.F $ c. Jan. •> I 1 31 To Stock .... „ Profit&Loss I L.F 10 45 5 51 9C 10 00 Jan. 12 By J. E. Smith &Co 3 51 51 00 00 Dr. WINE, Cr. 1868. Jan. I fi 31 Feb. I t J.F $ C. 1868. To Stock .... I 7808 40 Jan. 7 L.F $9 12 ,, Profit&Loss 10 178 SO »> 24 M 31 7986 90 * „ Balance . . 6054 00 1 By Cash ,, J. E. Smith & Co „ J. E. Smith & Co ,, Balance . . J.F 2 3 5 8 $ IS 768 c. 00 90 I 1 149 lOO 6054 loo 7986 90 • ll[J Mr •ihi I ,-,4 M I ' , !. ;!■■>.' , H ■ : ! P i» n 102 FOL. 4 Sixth. Set— Ledger. Dr. REFORD & DILLON, Wellington-St. Cr. FOL. 4 1 868. Jan. I )« 14 >» 25 >> 31 To Stock... „ Bills Payable ,, Sundries ,, Balance .... J.F $ c. i 1868. I 169 00 Jan. ■7 3 1064 00 >> 29 5 1 138 00 8 443 00 2814 00 i iFeb. I By Brandy. ,, Ashes . By Balance J.F 2 6 $ 1064 1750 00 00 281400 44300 Dr. CHAS. MOORE & Co., Wellington-St. Cr. 1868. Jan. To Stock.., ,, Balance . J.F I 8 $ 290 1105 1395 00 00 00 1868. Jan. Feb. 13 By Ashes I By Balance . . J.F 3 $ 1395 1395 c. 00 00 1 105 00 Dr. BILLS RECEIVABLE, Cr. 1868. Jan. y> >> Feb. To Stock „ H. Miller . . ,, Morrison, T. &Co „ J.Boyd & Co 1 To Balance. J.F $ c. 1868. I 637 00 Jan. 14 3 40 00 >> 30 4 160 00 >f »> 6 712 1549 352 00 00 00 >> 31 By G. Michie & Co ,, Sundries . . ,, Cash Balance J.F $ 200 857 140 352 1549 00 00 00 00 00 Dr. CASH Cr. 1868. Jan. >> To Stock ,, Wine „ F.G.Perkins & Co.... „ H. Miller.. ,, Herrings . . „ Galls ,, Morrison, T. & Co.... Carried forward J.F $ c. 1868. 1 650 00 Jan. 4 2 15 00 »> 7 10 3 200 00 >) >> )) 7 «5 )) 14 4 100 GO M 6 36 >l 137 00 L.F 1116 10 21 By Irish Whisky „ do. MSalt ,, Leghorn Hats ,, G. Michie & Co J.F 2 I Carried forward* L.F 10 $ 34 69 20 28 80 c. 95 85 90 10 00 233 80 * Example of an account transferred to another Folio, FOL. 4 $ 443 oo oo oo oo $ 1395 c. 00 1395 00 1 105 00 $ c. 200 00 857 00 140 00 352 00 1549 00 $ 34 69 20 28 80 233 c. 95 85 90 ID 00 80 FOh. 5 Dr. Sixth Set— Ledger. WAREHOUSE & STORES. 103 FOL.. Cr. ■5 1868. Jan. Feb. To Stock ,, Cash., To Balance . I 5 $ 4800! 00 6o'oo 4860 00 4860 j 00 1868. Jan. 31 By Balance J.F 8 $ c. 4860 '00 4860 CO • Dr. JOHN BOYD & Co., Front-St. Cr. 1868. J.F $ c. 1868. J.F $ c. Jan. >> >> 13 17 29 To Copperas . . ,, Sundries , . ,, Ashes .. 3 4 6 18 673 1000 85 00 00 Jan. >> I 30 31 By Stock ,, Sundries. , . . Morrison, T& Co ,, Balance .... I 6 7 L.F 8 409 800 80 401 30 90 00 «'^5 1691 85 169I 85 Feb. I To Balance . , 401 65 Dr. MORRISON, TAYLOR & Co., Front-St. Cr. 1868. Jan. II 9» 17 >l 23 »» 31 >> >> 1 Feb. ^ To Barrel Staves ,, Salt ,, Sundries . . ,, Ashes (error, „ J. Boyd & Co I, To Balance. . J.F 1 1 1868. 3 360 00 Jan. I 4 300 00 fr 17 5 1012 00 J? >> 7 144 00 j» 31 >» 80 00 -! 15 i 1 1896 1286 By Stock . . ,, Sundries ,, Cash.... ,, Balance J.F I 4 4 8 * $ 229 85 300 CO 80 00 12S6 15 1 896 00 1868. Jan, 25 II 31 Feb. 1 Dr. GLYNN, MILLS & Co., London, Eng. Cr. To Cash ,, Sundries . . To Balance . , J.F $ 1 c. j 1 1868. 5 800 00 Jan. I 6 840 1640 1488 00 00 20 II 1 31 J.F $ By Stock .... ,, Balance . . I 8 151 1488 1640 80 20 N. f V.:j I :S'i 104 FOL. 6 Dr. Sixth Set— Ledger. BILLS PAYABLE. FOU 6 Cr. i868. Jan. To Cash . „ Balance J.F $ c. 1868. 5 8 H5 8674 OS 45 Jan. >> I 7 13 8819 SO »» 14 19 Feb. I By Stock .... „ A.Silva&Co „ Refold & Dil- lon ,, Smith & Ar- thurs „ W.G.Taylor i' By Balance J.F I 2 3 4 $ 4906 660 1064 189 2000 8819 8674 50 00 00 00 00 50 45 Dr. ANTONIA, SILVA & Co., St. Uses. Cr. 1868. 1 Jan. To Bills Payable i J.F 2 $ 660 C. 00 1868. Jan. 2 By Salt U-F 2 $ 660 c. 00 FOL. 7 Feb. Jan. Dr. SALT. Cr. 1868. Jan. 2 10 I* 31 Feb. I ToA.Silva&Co ,, Cash f,, Profit & Loss To Balance . J.F $ C. ;868. 2 660 CO Jan. 17 3 20 90 L.F »> 23 10 96 776 226 03 93 93 II 31 By Morrison, T, & Co.. ,, Morrison, T, & Co... „ Balance . J.F $ 300 250 226 776 00 00 93 93 Jan. Jan. Dr. GEORGE MICHIE & Co., Front-St. Cr. 1868. J.F $ c. 1868. - J.F $ C. Jan. 14 To Sundries. . . 4 280 00 Jan. 2 By Herrings . . 2 280 00 FOU 6 :r. — $ c 4906 660 50 00 1064 00 189 00 2000 00 8819 so 8674 45 :r. $ c. 660 00 $ c. 300 00 250 226 00 93 776 93 c. 00 FOL. 7 Dr. Sixth Set— Ledger. HERRINGS. Cr. 105 POL. 7 1868. • J.F $ C. 1868. J.F $ c. Jan. 2 31 To G. Michie & Co ,, Profit & Loss 2 10 280 38 318 00 00 0^ Jan. 16 23 31 By Cash ,, Morrison, T. & Co.... ,, Balance .... 4 5 8 100 78 140 318 00 00 00 00 Feb. I To Balance 1 1 1 140 00! Dr. W. G. TAYLOR, London, Eng. Cr. IS68. ' J.F $ C. 1 1868. J.F. $ c. Jan. 19 31 >> To Bills Payable „ J. K. Smith & Co.... ,, Discount . . 4 7 i 2000 1 128 10 3138 00 ] 00! 00! ] 00; Jan. 3 ByLcghornHats 2 3138 3138 00 00 Dr. LEGHORN HATS, Cr. 1868. Jan. To W.G.Taylor ,, Casli Feb. I To Balance . J.F. $ c. 1868. 2 3 3138 28 3166 00 10 10 10 Jan. 31 3166 By Balance. J.F. $ 8 3166 3166 c 10 10 Dr. IRISH WHISKEY Cr. 1868. Jan. 4 w >> l> 7 »» 31 Feb. I To Smith & Ar- thurs ,, Cash do. , Profit & Loss i> To Balance. J.F. $ c. 1 868. Jan. 6 2 189 00 2 34 95 >i 9 >> 69 85 »> 31 L.F 10 14 308 20 00 I 98 00 By F. & G. Per- kins " Smith & Ar- thurs ,, Balance.... J.F- $ 103 106 98 308 60 40 00 C» -1 •: ■ £il i\l 111 -!'■,. .ii •tKn 10(1 i86?.! Jan. Sixth Set— Ledger. KOI. FOI,. 8 8 Dr. smith & ARTHURS, Wellington-St. Cr. H To Irish Whisky „ Bills Payable 1 J.1-. ' $ c. J 868. ! 3 i 4 ! io6 189 40 00 Jan. >• 9 31 295 40 1 1 1 i 1 By Irish Whisky , F. G. Per kins & Co. . . . J.F. $ 2 189 7 106 295 c. 00 40 40 VOL. 9 1868. Jnn. Feb. Dr. F. & G. PERKINS & CO., Front-St. Cr. 1868. Jan. Feb. II I J.F.JI $ ic. To Irish Whisky „ Smith & Ar- thurs To Balance . , 103 60 I 106140 2Io'oO 10 CX) 1868. Jan. By Cash „ Balance.. Dr. HUGH MILLER & CO., King-St. 1868. Jan, tf '';f I To Opium . . J.F.: $ jc. 47 85 1868. Jan; J.F. 3 8 $ 200 10 210 00 00 00 Cr. J.F. 1 1 1 By Sundries. . . . ; 3 $ 'c. 4785 1868. Jan. Feb. 1868. Jan. ! ill" Dr. BRANDY. Cr. 1 868. Jan. 7 »> 31 Feb. I *■ J.F. $ C. 1868. 1 ToReford&Dil- lon 2 L.F 10 1064 166 00 90 Jan. 23 24 „ Profit & Loss ft 31 ' 1230 90 To Balance.... 532 00 By Cash " J. E. Smith & Co " Balance J.F. $ 5 348 »» 350 < 532 1230 00 90 00 90 1868. Jan. FOI,. 8 $ 189 106 c. 00 40 295 40 $ 200 10 210 00 00 00 $ ! c. 4785 $ 348 350 532 1230 00 90 00 90 FOL. 9 Dr. Sixth Set— Ledger. J. E. SMITH & Co., Church-St. 107 FOL. 9 Cr. 1868. Jan. 12 »» 24 Feb. I To Sundries., do. .. To Balance . , J.F. $ 1 c. 1868. 3 819 90 Jan. 25 5 ! i6o7'9o| )f 31 >> >> '1 2427180 1 171I80 |J.F.|| $ By Reford &j ji Dillon... 5 I 1 128 ,, VV. G.Taylor , , Balance . . . :i28 171 2427 c. cx> 00 80 80 Dr. ASHES. Cr. 1868. i Jan. 13 »t 29 >> 3' Feb. I ToC. Moore&Co „ Reford & Dil- lon ,, Profit & Loss To Balance. J.F. $ C. 1868. 3 1395 00 Jan. 23 6 1750 00 »> 29 L.F 10 129 80 i> 31 >> J» 3274 80 2046 80 By Morrison, T. & Co ,, John Boyd & Co ,, Morrison, T. &Co ,, Balance . . . . J.F. $ 5 84 6 1000 7 8 144 2046 3274 c. 00 cx> 00 80 80 Dr. DISCOUNT. Cr. 1868. Jan. 17 >> 30 ft 31 »» »> To Morrison, T. & Co.. . ,, J. Boyd & Co. „ Bills Receiv- able ,, Profit & Loss. J.F. $ c. 1868. Jan. 25 4 3 00! 6 90, >> 31 »f 8 12! >> »» L.F 1 10 i.i 18 24 20 — 1 25 1 By Reford & Dil- lon ,, Glynn, Mills & Co „ W.G.Taylor. Ij.K, $ j^" 10 4 10 00 20 00 24 120 Dr. RENT AND CHARGES, Cr. 1868. Jan. 25 i> 29 To Cash » do. J.F. $ c. 1868. 6 30 00 Jan. 31 9t i 49 79 1 70 i 1 By Profit & Loss 1 L.F $ 10 79 79 c. 70 70 ■ I' 1% 1^: •i , n B I- ' f 8 i '■ 1 "f ! «l ''U u |i ' I: I 108 pol- io Sixth Set— Ledger. KOI.. lO Dr. C A S H Cr. 1868. Jan. 17 »i t« »f 23 '» 3a >) 31 j> >* Feb. I To ani't brought fonvanl.. . . Morrison, T. & Co Sundries .... J. Boyd & Co. Ijills Receiv- able do. do. . , To Balance. L.F $ c. 1868. 4 1 1 16 21 Jan. 17; J.F. 4 5 6 80 496 88 00 50 00 19 21 25 >> S4S .S8 M ft 7 140 00 M »> M » 29 >» 2769*59 612 19 |l.f ght; forward.. ..14 J. K. ,, I?ills Payable ,, Wareiiouses and Stores. 25 M Clynn, Mills & Co ,, Rent & ch'gs ,, do. ,, Profit & Loss. ,, Glynn, Mills & Co , , Balance $ |c. I 233 1 80 '45I05 6o]oo 800 00 30 00 49170 3 O"* 835 612 2769 80 19 59 Dr. PROFIT AND LOSS. Cr. 1868. Jan. To Cash ,, Alum 1 ,, Tobacco.. . . » Sugar ,, Rent&ch'rgs „ Stock J.F. L.F I I 2 9 I $ 305 ijoo 39 1 60 675 7970 844 69J 974 79i 1868. Jan. 131 By C '-""eras. . . ,, Ojj.um ,, Galls ,, Clover Seed. ,, Barrel Staves ,, Bottles... , , Wine .... „ Salt...... ,, Herrings.. ,, Whisky. ,, Brandy,. . . ,, Ashes. . . . ,, Discount.. L.F I 2 2 2 3 $ 9 40 i3iA2i 2;8o 12I00 296140 5 10 178 96 38 14 166 129 12 50 03 00 20 90 80 18 974 79i l-OI.. 1 1 1868. Jan. i; >OL. II Dr. Sixth Set— Ledger. r. AI.ANC E, 1011 • OI,. II 1868. { I Jan. 131 j I-'-":! $ To Sundries, merchandise accouiUs . . ,, Bills Keceiv- hle ,, Warehouses & Stores . . .. *-ash I „i ,, i'ersonal ac-, ' counts . . . , j „ 8 14809 95 i .., 352jOO ,,]| 486o'oo 61219 1557 23991 80 94J 1868. Jan. 31 By Personal Ac- I I counts .... „ Bills Payable ,, Stock Cr. J.Fj $ I S 1548 ,,l 8674 l, 13769 00 45 491 123991 94i . ^ "( M li! < •1 1 ^J^^i i ■!|!:i ,*! I , 110 DAY-BOOK-SEVENTH SET. SECOND METHOD, COLLECTED FORM. (See note, page 88.) TORONTO, 1ST JANUARY, 1868. J.F INVENTORY OF PROPERTY *P.W,B. 70 12 12 12 3» olbs. o„ 13.. o„ 73,. 146,, o„ Goods on hand, — Alum 7cwt. 3qrs, Copperas . . 23 ,, o ,, Tobacco . . 12 „ I Sugar , . . Opium . . • Galls Cloverseed Corkwood .... 8tons 5cwt., Barrel Staves . . 26 M., Bottles 81 gros!., Wine 8 pipes Do 4 M Do 36 doz., Do 73 „ Do 109 ,, Cape, Do 3 ps. Teneriffe, Do 4 ,, Lisbon, Do 5 butts Sherry, , @$2 80 >> I I IS IS ^Ib 9 2 00 4S „ct. M lb »» „ 16 ,,104 „ 48 M 5 .,288 m320 .. 9 .. 9 .. 4 .,'92 ,,232 ,,252 SOm ,. 00 ,,ct. 00 ,, tn 60 „ RJ 40 „ gi 00 „ p 00,, ,, 60 ,, dx 00 ,, ,, 20 ,, „ 00 „ p, 00 „ ,, 00 „ bl Debts due to me, — Reford & Dillon, Wellington Street. Chas. Moore & Co., do. \Varehouse and Store, valued at $ 21 26 1485 114 178 73 200 858 1263 4S 2304 12S0 345 657 4S7 576 928 1260 169 290 c. 70 4S 60 7S 8S 00 00 00 60 90 CO 00 60 00 80 00 00 00 $ 00 00 +12076 4S9 4800 I733S 25 00 00 25 • p. W. R (Page Waste Book.) t N.B.— We now charije the whole amount, $12076.25, to the general ajcount of Merchan- dise, and not to each of the Accounts as in the former method, via., Alum, Copperas, etc. etc W. U ORR. page 88.) $ c, 12076 459 4800 2S CO 00 17335 25 t of Herchan- iras, otc, etc- U ORR. Sixth Set— Collectedly. TORONTO, I ST JANUARY, 1868. Ill J.I-'. I I i Debts due by me, — John Boyd & Co., Front St $409-30 Morrison, Taylor & Co., Front St 229.85 Glynn, Mills & Co., London, Eng 151.80 Received from Antonia Silva & Co., St. Ubes, Invoice of Salt, shipped per the Active, 33 tons, at $20 per ton Bought of George Michie & Co., Front St., for 3 month' Bill, 70 barrels Lochfine Herrings, at $4 per bbl Bought of W. G. Taylor, London, England, 31 days, 4 cases Leghorn Hats, per list Freight and Charges paid by him Commission for purchasing, 2 per cent p. W.B.I 70 Bought of Smith & Arthurs, Wellington St., — 3 puncheons of Irish Whisky, Nos. i to 3, 168 gals., at $1.10 per gal Storage charged thereon Sold by F. G. Perkins & Co., Front St.,— I Pun. Irish Whisky, 56 gnls., at $1.85 per gal. Sold Hugh Miller, King St.,— I Case Opium, 16^^ lbs., at $2.90 per lb. $ 790 95 71 660 00 71 71 280 ^940 139 58 1^ 00 00 20 80 00 71 » ft 72 72 184 4 189 103 47 80 20 00 60 85 i ' ii n' ■81 j' I I 112 Book-keeping— Seventh Set. TORONTO, 7TH JANUARY, 1868. J.F. 3 Received from Reford & Dillon, Wellington St.,- 4 Casks of Brandy, at $266 Sold Smith & Arthurs, Wellington St., — I Pun. Irish Whisky, 56 gals., at $1.90. XI Sold Morrison, Taylor & Co., Front St.,- 6 M Barrel Staves, at $60 per M 12. Sold J. E. Smi'.h & Co., Church St.,— 2 Pipes Port Wine, at $336.00 each. . . 19 Doz. Cape do. ,, 4.6odoz.... 19 Do. btls. under ,, SO do ^H gross Empty bottles, at $6.00 grr)ss Bought of Chas. Moore & Co., Wellington St., at 4 months, — 75 bbls. Pot Ashes, per invoice, at $18.60 13 Sold John Boyd ft Co., Front St., at 2jt^ per cent, for cash, — 141^ cwt. Copperas, at $1.30 per cwt John Boyd & Co. did not pay Cash for the Copperas, as was their intention at the time of pmxhase, there- fore they are charged with the whole amount ; if they had paid Cash, the 2}4 per cent, would have beea entered and deducted. W. R. ORR. IS Handed George Michie & Co., Front St., Delacour's acceptance, $200 p. vv. B 72 73 73 74 17 S'^ld Morrison, Taylor & Co., Front St., at 61 days, 12 tons St. Ubes Salt, at $25 per ton 74 74 75 75 $ 1064 1 06 360 c. 00 40 00 672 87 9 51 819 139s 00 40 50 00 90 00 18 85 200 00 300 '00 !ii!l 4 Sixth Set— Collectedly. TORONTO, 17TH JANUARY, 1868. 113 Sold John Boyd & Co. , Front St. , at 2|^ per cent, for Cash, — 5 cvvt. AUuii, al $ 2.60 per cwt 10 M Staves, ,, 60.00 ,, M 3 cwt. Clover Seed, at 20.00 ,, cwt 17 P.W.l! I $ 75 13 600 Discount allowed Morrison, Taylor & Co., Front St., for 2 months' Interest ^o Sold Morrison, Taylor & Co., Front St., for 3 months' Bill,— 12 bbls. Pot Ashes, at $ 7.00 per bbl 15 do. Herrings, „ 5.20 ,, do 10 M Staves, ,, 60.00 ,, M ID tons Salt, ,, 25.00,, ton ___24. Sold J. E. Smith & Co., Church St,— I cask French Brandy, $350.90 I hhd. Sugar, 1200 lbs., at 9 c. per lb. . . 3 pipes Port Wine, at $340.00 per pipe. 30 doz. Cape do. ,, 4.30 ,, doz, . 25 Drawn on J. E. Smith & Co., "Church St., in favor of Reford & Dillon, Wellington St., at 31 days, $1128, Discount allowed by Reford & Dillon for prompt payment 10 .29. Received Invoice from Reford & Dillon, Wellington St., of Pearl Ashes shipped from Goderich, per Grand Trunk, 100 bbls., at $17.50 per bbl , .21 Sold to John Boyd & Co., Front St,— 50 bbls. Pearl Ashes, now on their way from Goder^ ich, deliverable 3 days after arrival, at $20 per bbl. . . 77 00 00 60 I 00 673 j 00 77 84 78 600 00 00 00 250 00 I I0I2 78 79 350 108 90 00 1020 00 129 00 1607 00 CO 90 79 1138 00 1750 1000 00 00 ^1:^ I hill i 11; ! !li 114 Book-keeping— Seventh Set. TORONTO, 30TH JANUARY, 1868. J.F. 4 Discount allowed John Boyd & Co., Front St., for interest on Cash 31 Error in charging Morrison, Taylor & Co., Front St., Pot Ashes, 12 bbls., at $7, instead of $19, say $12 per bbl 31 Drawn on J. E. Smith & Co. , Church St. , in favor of W, G. Taylor, London, England, at 31 days, for $1128.00 Discount allowed for prompt payment 10.00 31 Error discovered in placing to the account of Smith & Arthurs, Wellington St., i pun. Irish Whisky, sold to F. & G. Perkins & Co., Front St., on Jan. 9th. . . 31 Error in giving Credit to Morrison, Taylor & Lv., Front St., for Cash, paid by John Boyd & Co., Front St., on Jan, 17th I'.W.B 80 82 82 >i i> 82 83 $ : C. 90 144 ( 00 "38 00 106 40 80 I 00 Sixth Set— Collectedly. TORONTO, 3 1 ST JANUARY, 1868. 115 J.F 5 Inventory of Goods on hand,- @ cwt. qrs. lbs. Alum 2 3 o Tobacco 12 o 5 ,, Opium 16J ,, Galls 84 , , Cloverseecl .... 9 2 o ,, Corkwood 8 tons 5 cwt. ,, Wine 6 pipes port ,, 1^0 73 doz. „ „ 1^0 36 ,, ,, ,, L>o 57 „ „ „ Do 3 ps. Teneriffe, Do. ; 4 ,, Lisbon, Do 5 bts Sherry, Salt II tons, Herrings 35 bbls., Leghorn Hats . . 4 cases, Irish Whiskey.. 56 gals., Brandy 2 casks. Ashes 63 bl)ls.. Do 50 „ @ >i >> >> $ 2 I 2 16 104 288 320 9 9 4 192 232 252 20 4 791 I 266 18 17 So ^ cwt. 20 ,, lb. 45 •» >> 00 ,, cwt. 00 ,, ton. 00 „ pipe 00 ,, „ 00 ,, doz. 60 „ ,, 20,, ,, 00 ,, pipe 00 ,, ,, 00 ,, butt 63 ,, ton. 00 ,, bbl. 52 ,, case 75 .. gal. 00 each. 60 ^ bbl. 50,, „ P.W.B.j 83 $ 7 70 1446 00 40 42^ 42 00 152 00 858 00 1728 00 320 00 657 00 345 60 239 40 II 576 00 928 00 1260 00 226 93 140 00 3166 ID 98 00 5.32 CO 1171 80 875 00 P.W.B. Cash on hand 84 Bills Receivable on hand, — Finlay & Co. 's acceptance $ 40 00 James Wilson's do 62 00 Thos. Hodgen's do 150 00 E. Carpenter's do. 100 00 Warehouse and Stores, valued at Carried forward . . . $ 14809 612 352 4860 20634 m 95* 19 00 00 'I' ! I tl6 Book-keeping— Seventh Set. (Sixth Set-Collectedly.) 5 TORONTO, 3 1ST JANUARY, 1868. Brought forward List of Debts due to me, — John Boyd & Co., Front Street $ 401 65 Morrison, Taylor & Co., Front Street. . . . 1286 15 Glynn, jNIIlIs & Co., London, Eng. .:.... 1488 20 F. & G. Perkins & Co., Front Street .... 10 00 J. E. Smith & Co., Cliurch Street 171 80 I'.W.B. 84 .31 List of Debts due by me, — Reford & Dillon, Wellington Street $ 443 00 Chas. Moore & Co., do. 1105 00 List of Bills Payable,— My note to N. Low $4000 00 acceptance to McDonnell & Co 688 65 do. ,, Wm. Murray 72 80 do. ,, A. Silva & Co 660 00 dp, ,, Reford & Dillon 1064 00 do. ,, Smith & Arthurs i8g go do. ,, W. G. Taylor 2000 cxd 85 85 $ I c. 2J634! 14I 3357180 239911945 i548ioo 8674'45 10222 45 ll 1 m 118 Cash Book— Seventh Set. vol.. I. DR. CASH. 1868. Jan. J.F. I I 7 2 9 2 II 2 16 2 Feb. 15 »l 17 >» 1 " »» ' 23 »» ; 30 2 1 " >> i 31 »» 1 M 2 I To Stock amount on hand Merchandise Sold E. Grant F. & G. Perkins & Co., on ccount Hugh Miller Mercha ise do Morrison, Taylor & Co Morrison, Taylor & Co Merchandise sold Lyman, Elliott & Co. . John Boyd & Co., on account Bills Receivable (4 bills discounted) Discount Bills Receivable, J. Wilson's acceptance. To Balance on hand p. W. D. 69 72 73 ! 74 I 75 >» ! 76; " I 77 M I 81 >> $ •650 IS 200 7 100 6 137 80 496 88 857 4 140 +2781 91 c. CXJ 00 00 85 00 36 00 00 50 00 00 20 00 612 |i9 * Note.— This amount, $050, is not now to be taken into the Journal, as it was journalized when the books were opened, 1st Jan. Balances, whether on the Debit or Credit tHr of the Cash-book, are never journalized, as the balance at the Debit was not received during the cur- rent month, nor was the Balance at the Credit paid out. t NoTB.— The totalu of the Cash by this mode are 912.32 greater than the totals of the Cash Account in the Ledger, by the former method (See Ledger, page 108), in consequence of the Bills Receivable discounted being entered in full on the Dr. side, and the Discount of these Bills on the Cr. ; but the Cash balance is the same. In tho former set the net proeeeds, only, of the Bills, appeared in the Cash account. W. R OKR. $ 1 c. •650 00 »S 00 200 o H Vm' • Iw. ' • • ^fl •t #i = I - J •t - •• S< S s « u »l r> •\ •" rt .\ Q rawn, re. = Pt •\ « »s - •^ .s - A , >s , ^ , to )H -^ .s • »— < bfl i-i o 5 ^ ^ • e o a 1 1 n whon and w S 1 1 "» •^ c c ■4-1 f2 o % O •-^ w >-^ CO S t-^ hA (^ H H p" ; ; •s «t *> : #t s •s .k •$ y whom dra and place. o' g • in tn = *« »> U a -4^ 1 o t S 1 1 II « b t-^ • M E^ H From whom _ Received. 1 4 4 2 a i 1 d 1 d 1 • a 1 a 5 s ^ •§ M *t * •* c . ( ^ «> cJ ^ ^ •^ P< »— > o «^ «« »« 5 : « N fO "* »0 \o « •; •^ M : N. fo r^ .. *t ^ 2 ►-, I f I I I Oi n j 00 CO 00 •-3 ■i Pi / 121 § o S (9 •§ 2 as I I 5 "2 a •as an •0 s s 3 "Ha 12 ^a n ej o 4= rt .3 o a s .n u 8 vri O ^ 1 o 00 1 "^ 8 8 8 8 ! 8 o m 00 N \o rf On Q ro v^ 8 •t CO ^ a ^ 00 hi4 3 M 't "+ NH p) ro « 00 CO 00 1— t 0^ M li^ liN 1^ u 'J 0) s c3 B cii ^ S •c a, < a, c C5 ON o o 0\ -^ o o o o o U <^ a o (A C -§ o U •8 o Q u c o o U rt C Q o a 3 1-1 < ■5 ■§ rt O Q 8 2- o\ u Q c rt a rt a 2 a o 4< ^ o o o o o o o t3 o o rt 2- o a o a 05 o 525 o I o w ro «1 T( CASH A SEVENTH SET. i>i !i JOURNALIZING SIXTH SET, COLLECTEDLY* m REAL ACCOUNTS, CASH AND MERCHANDISE, ALSO OF TRANSACTIONS BY BILLS, WITH DISCOUNT, INTEREST, &c., &c. * See note, page 88. y > m- i! ■ . V Jan. I If >i >> >» tt » >> >f >» >f Jan. I j> >> >> i> >> >." »> >> » »» >> >> 2 >t >> >> 2 I I »> 2 >> 3 »." >» >> »» Sundries Dr. to Stock, — Cash as per C. B. Bills Receivable is per. . B.R.B. Merchandise as per. Reford & Dillon, Street, as per. . Chas. Moore & Co., Street, as per. . D.B. Wellington D.B. Wellington D.B. Warehouse & Store as per D.B. Stock Dr. to Sundries, — Bills Payable as per B. P. B. John Boyd & Co. , Front Street, as per D.B. Morrison, Taylor & Co., Front Street, as per D.B. Glynn, Mills & Co., London, England, as per D.B. FOL. I Page. $ c. $ 118 120 no 650 637 12076 >i 169 00 it 290 00 459 4800 18622 121 4906 III 409 30 »» 229 85 M 151 80 790 5697 c. 00 00 25 00 OQ 25 50 95 45 Note.— Proceed now to open accounts for the above in the Ledger, when this is done you hare performed what is called oi)ening the books. The transactions of the month will then be joumalizei'i in the collected form from each book in use, viz. :— Cash Book, Bill Book and Day Book . the dates being in the first, and Ledger folio in the second column, at the left hand side of the Journal. W. il. ORR. * C. B. (Cash Book.) B. R. B. (Bills Receivftblo Book.) B. P. B. (BUU Payable Book.) D. B. (Day Book.) i ! I t| m i ill I .4 :|- 1 ll * J l» 124 FOL. 2 Journal— Seventh. Set. TORONTO, 3 1 ST JANUARY, i868. Jan. >> »> >> »» Jan. ft 4 7 lo 1 19 L.F I >J >> >> Cash Dr. to Sundries Merchandise do do. do. .C.B. F. G. Perkins & Co., Front Street Hugh Miller, King Street. . . . Morrison, Taylor & Co., Front Street Morrison, Taylor & Co. , Front Street John Boyd & Co., Front Street Bills Receivable do. Discount Sundries Dr. to Cash ...C.B. Merchandise do do George Michie & Co., Front Street Bills Payable Warehouse and Stores Glynn, Mills & Co., London, England Glynn, Mills & Co., London, England Rent & Charges do. do. Carfied fonvard to page i3j . , Page, ii8 >> »> i> iig $ ICO 6 496 137 80 857 140 34 69 49 800 840 30 49 c. 00 00 36 50 00 00 00 00 95 85 00 00 00 00 70 $ 617 200 7 217 88 997 4 2131 86 00 85 00 00 00 20 91 153 80 145 60 1640 79 2158 80 CO 05 00 00 70 55 ! c. 7 86 )0 CX3 7 85 7 00 00 )7 00 4 20 Ji 91 53 80 to 00 ^5 X) OS 00 JO 00 79 70 58 55 Sixth Set— Collectedly Journalized. 125 TORONTO, 3TST JANUARY, 1868. FOI,. 3 Jan Jan Jan Tan L.F 29 5 30 4 I II 4 17 3 30 >> »» >f f» »» >> >> 2 I 5 14 2 «> 5 19 5 I 2 3 4 7 2 29 >> 13 II Sundries Dr. to Cash ...C.B. Brought fonvard from page 124 Profit and Loss Discount , Bills Rec'ble Dr. to Sundries. Hugh Miller, King-st. No. 1 due I2th March B.R.B. Morrison, Taylor & Co., Front Street, No. 2 John Boyd & Co., Front-st. No. 3, due 4th March John Boyd & Co., Front-st. No. 4, due 3rd April John Boyd & Co., Front-st. No. 5, due nth April John Boyd & Co. , Front-st. No. 6, due 20th April Sundries Dr. to Bills Payable. A. Silva &Co., St. Ubes, No. i, due April 23rd B. P. B. Reford & Dillon, Wellington-st. No. 2, due April loth Smith & Arthurs, Wellington-st. No. 3, due April i6th W. G. Taylor, London, England, No. 4, due Feb. 19th Merchandise Dr. to Sundries. A. Silva & Co. , St. Ubes George Michie & Co., Front-st. W. Ci. Taylor, London, England. Smith & Arthurs, Wellington-st. Reford & Dillon, Wellington-st. Do. ^^-VL ^^°' Chas. Moore y Co., do. Page. $ c. $ 119 2158 3 8 2169 120 40 »> 160 i> 62 00 11 400 00 )i 150 (X) >» 100 00 712 912 121 660 00 i» 1064 00 f> 189 00 >> 2000 00 3913 p.n.n III 660 II II II 112 1064 00 280 3138 189 113 1750 00 ' 2814 112 1395 8476 c. 55 OS 12 72 00 00 00 00 00 00 00 00 CO 00 00 00 « i: I I!' 126 Jonmal— Seventh Set. FOL. 4 TORONTO, 3 1ST JANUARY, i868. Jan >> >> >> »> L.F I 3 4 5 3 >> >» Jan Jan IS 25 Sundries Dr. to Merchandise F. & G. Perkins & Co., Front-st Hugh Miller, King Street Smith & Arthurs, Wellington-st Morrison, Taylor & Co. Front-st Morrison, Taylor & Co. ,, Morrison, Taylor & Co. ,, Morrison, Taylor & Co. ,, J. E. Smith & Co., Church-st.. J. E. Smith & Co., „ John Boyd & Co. , Front-st .... John Boyd & Co., Front-st.... John Boyd & Co., Front-st P.D.B III >» 112 >i ,» "3 114 112 "3 112 "3 114 George Michie & Co., Front Street, Dr. To Bills Receivable Discount Dr. to Sundries, — Morrison, Taylor & Co. Front-st John Boyd & Co., Front-st Sundries Dr. to Discount, — Reford & Dillon, Wellington-st W. G. Taylor, London, Eng. . Reford & Dillon, Wellington Street, Dr., — To J. E. Smith & Co., Church-st, ♦ 112 "3 », 114 "3 114 "3 $ 360 300 1012 144 819 1607 18 673 1000 10 10 00 00 00 00 90 90 85 00 00 00 90 00 00 $ 103 47 106 1816 2427 1691 6193 200 20 60 85 40 00 80 50 00 90 00 H28 ^-^ $ I03 47 io6 1816 2427 1691 6193 200 20 c. 60 8S 40 00 80 _85_ 50 00 90 00 Sixtn Set— Collectedly Joximalized. 127 TORONTO, 3 1ST JANUARY, 1868. FOL. 5 L.F 5 Jan 31 >> »» >> >> »> >> >< II »» II II II II W. G. Taylor, London, Eng. Dr.,- ToJ. E. Smith & Co., Church-st. F. G. Perkins & Co., Front Street, Dr.— To Smith & Arthurs, Wellington Street Morrison, Taylor & Co. Front Street, Dr. — To John Boyd & Co., Front -st. . Balance Dr. to Sundries, — Cash Bills Receivable Merchandise Warehouse and Stores John Boyd & Co., Front-st Morrison, Taylor & Co., Front-st Glynn, Mills & Co. London, Eng. F. G. Perkins & Co., Front-st. . J. E. Smith & Co., Church-st.. P.D.B 114 Sundries Dr. to Balance, — Reford & Dillon, Wellington-st. Chas. Moore & Co., ,, Bills Payable 114 114 )i "5 II 116 116 II II T 401 1286 1488 10 171 443 1105 c. 65 IS 20 00 80 $ 1 128 00 106 80 40 612 352 14809 4860 00 00 23991 3357 00 19 00 95i 00 80 94i 1548 8674 10222 00 45 r ' ■u, 1 V mDEX TO LEDGER. SEVENTH SET. . (Sixth Set— Collected Form.) B L.F. I Bills Receivable Bills Payable Z Boyd, John & Co., Front Street.. 3 .Balance 6 Cash Piscount 4 G Clynn, Mills & Co., London,.. E 3 u Merchandise i Moore. Chas. & Co., Wellington St 2 Morrison, Taylor & Co., Front St 3 Miller, H., King Street 4 Michie, G. & Co., Front Street. . 4 L.F. Perkins, F. & G. & Co., Front St 3 Profit & Loss 5 Reford & Dillon, Wellington St.. 2 Rent and Charges 4 Stock I Silva, A. & Co., St. Ubes 5 Smith & Arthurs, Wellington St . 5 Smith, J. E. & Co., Church St . . 6 Taylor, W. G., London, England 5 W Warehouse and Stores 2 Ledger -Seventh Set. FOL. I 129 KOI.. I Dr. STOCK. Cr. 1868. Jan. I 31 To Sundries . . ,, Balance . . J.F. $ hI 1868. I L.F 6 5697 45 i 1376949^ jan. »> I 31 19466 94 s 1 Feb. I By Sundries . . ,, Profit li Loss By Balance . . iJ.F. I L.F 5 $ 1S622 C. 25 844 69i 1 9466: 94 i 13769:49^ Dr. C AS,H Cr. 1868. Jan. Feb. To Stock. . . . ,, Sundries. To Balance. J.K. $ C. 1 868. I 650 00 Jan. 31 2 213I 91 »f >» 2781 91 19 612 By Sur dries. ,, Balance.. J-F 3 L. V 6 $ 2169 612 2781 c. 72 19 91 Dr. BILLS RECEIVABLE. Cr. 1868. Jan. I 31 To Stock . . ,, Sundries Feb. To Balance J-F $ c. 1868. I 637 op Jan. 31 3 912 00 >i >> »» >> 1549 00 352 00 By Cash ,, G. Michie & Co ,, Balance. . . . J.F $ 2 997 4 200 L.F 6 352 154c. c. 00 00 00 00 Dr. MERCHANDISE. Cr. 1868. Jan. I 31 Feb. I To Stock . . . . ,, Cash ,, Sundries , . ,, Profit & Loss. To Balance . . J.K $ c. 1868 I 2 3 12076 153 8476 25 80 00 Jan. 31 >> 5 915 26J in i> » 21621 1 14809 955 By Cash . . . . ,, Sundries ,, Balance .T.F 2 4 h.V, 6 $ c. 617 86 6i93j50 14809195^ i J21621I31J i " «! is' I ! ,;! 130 LedgeiT— Seventh Set. I'OL. FOL. Dr. REFORD & DILLON, Wellington-St. Cr. 1868. Jan. >> I >» >» To Stock „ B. Payable. „ J. E. Smith & Co.... ,, Discount . . J.F I 3 4 9> 169 1064 1128 10 c. CO 00 00 00 18'"', Jan. 31 By Merchandise J.F 3 $ 2814 c. 00 >> »> ,, Balance . . L.F 6 441 2814 0. GO 2814 00 Feb. I By Balance .... 443 00 Dr. CHAS. MOORE & Co., Wellington-St. Cr. 1868. Jan. To Stock . . . . „ Balance . . J.F I L.F 6 $ 290 1 105 1 C, ' 00 00 00 ;i868. Jan. Feb. 31 I 1395 By Merchandise By Balance * • * • J.F 3 $ 1395 1395 c. CX) 00 1 105 » 31 Feb. I To Stock ,, Cash., To Balance J.F I 2 $ 4800 60 C. 00 GO 00 00 1868. Jan. 31 4860 1 4860 By Balance L.F 6 $ 486c c. CO 4860 1 00 Dr. BILLS PAYABLE. Cr. 1868. Jan. 31 To Cash... „ Balance J.F 2 L.F 6 $ HS 8674 8819 1868. Jan. Feb. By Stock . . . . 21: „ Sundries . . By Balance . J.F I 3 c. $. 4.^06 3913 00 SO 8819 8674 50 45 Cr. FOL. 2 J.F 3 $ c. 281400 2814 00 00 443 Cr. J.F $ 3 1395 1395 iios c. 00 00 00 Cr. L.F $ c. 6 486c CO 4860 00 Cr. J.F I 3 $ 4>o6 50 3913 00 8819 8674 50 45 FOL. Dr. Sixth Set—Collectedly. JOHN BOYD & Co., Front-St. 131 FOL. Cr. 1868. Jan. Feb. 31 To Merchandise To Balance J.K $ c. 1868. 4 I69I 85 Jan. 99 I 31 99 99 99 I69I 83 401 65 By Stock ,, Cash ,, B. Receivable ,, Discount . . Morrison, T&Co ,, Balance J.F $ I 2 409 88 3 4 5 \ 80 L.F 6 401 1691 c. 30 00 00 90 00 65 85 Dr. MORRISON, TAYLOR & Co., Front-St. Cr. 1868. Jan. 31 »» 9> Feb. I To Merchandise „ J. Boyd & Co To Balance. J.F $ c. 1868. 4 i8ift 00 Jan. I 5 80 00 99 99 99 31 99 99 99 99 1896 00 15 ^ 1 1286 By Stock .... ,, Cash „ B. Rec'able ,, Discount . . ,, Balance . . J.F I 2 3 4 L.F 6 $ 229 217 160 3 1286 1896 c. 85 00 00 00 15 00 Dr. GLYNN, MILLS & Co., London, Eng. Cr. 1868. Jan. 31 I To Cash To Balance . . J.F 2 $ 1640 c. 00 00 20 186S. Jan. 9) I 31 By Stock .... „ Balance . . J.F I L.F 6 $ 151 1488 c. 80 20 1640 1640 00 Feb. 1488 Dr. F. & G. PERKINS & CO., Front-St. Cr. 1868. Jan. 31 99 99 Feb. I To Merchandise „ Smith & Ar- thurs .... To Balance. J.F $ 1 C. 1868. 4 103 60 Jan. 31 5 106 210 ID 40 00 00 9» 99 By Cash ,, Balance . . J.F $ 2 L.F 6 200 10 210 c 00 00 00 ii'L '11 '? I I'll \ ii I -, 'I 132 FOL. Dr. Ledger— Seventh. Set HUGH MILLER, King-St. Cr. FOI., 4 1868. Jan. 31 To Merchandise 1 $ o* 1868. 4 47 85 Jan. 31 9S »» 47 85 By Cash „ B. Rec'able J.F $ 2 7 3 40 47 c. 85 00 85 Dr. DISCOUNT Cr. 1868. Jan. 31 To Cash ., Sundries , . ,, ,, Profit & Loss J.F $ c. 1868. 3 8 12 Jan. 31 4 3 90 >> >> L.F 5 12 18 20 24 — By Cash ,, Sundries J.F $ 2 4 20 24 c. 20 00 20 Dr. GEORGE MICHIE & Co., Front-St. Cr. 1868. Jan. 31 )> »> J.F $ c. 1868. To Cash 2 80 00 Jan. 31 „ B. Rec'able 4 200 280 00 00 By Merchandise J.F 3 $ 280 280 c. CX3 CO Dr. RENT AND CHARGES. Cr. 1868. Jan. 31 To Cash. J.F $ 1868. 2 79 70 Jan. 31 By Profit & Loss L.F s $ 79 c. 70 ;/: fOL. 5 Dr. Sixth Set— Collectedly. PROFIT AND LOSS. Cr. 133 FOL. 5 1 868. Jan. 31 >i »» » >> To Cash „ Rent&Ch'gs Stock. J.F $ c. 1868. 3 3 05 Jan, 31 4 79 70 ft f> L F I 844 927 69I 44J By Merchandise ,, Discount . . I 4 $ c. 915 2fJ I2;lb 927 44i Mil Dr. ANTONIA SILVA & Co., St. Ubes. Cr. 1868. Jan. 31 To B. Payable. J-F 3 $ 660 00 1868. Jan. 31 By Merchandise J.F 3 $ 660 c. 00 Dr. smith & ARTHURS, Wellington-St. Cr. 1868. Jan. 31 >> " To B. Payable. ,, Merchandise J.F $ c. > 1868. 3 189 00 Jan. V 4 106 40 40 >> )> 295 By Merchandise F. & G. Per- kins & Co J.F $ 3 189 5 106 295 1 1 c. 00 40 40 " iiii Dr. $ 79 W. G. TAYLOR, London, Eng. Cr. 1868, Jan, 31 f> >» a " To B. Payable, „ J. E. Smith &Co.... ,, Discount . . J.F $ c. 1 1868. 3 2000 00 Jan. 31 5 1128 00 4 1 10 00 GO -1 3 1 i By Merchandise J.F 3 $ 3138 3138 1 c. 00 00 i^ i; IJKiiBIHiiteiMfar 134 FOL. 6 Dr. Ledger— Seventh Set. J. E. SMITH & Co., Church-St. FOL. 6 Cr. i868. Jan. 31 Feb. To Merchandise I ,, Balance. J.F $ c. 1868. 4 2427 80 Jan. >» >» 31 2427 80 1 171 8o| By Reford & Dillon .. „ W.G.Taylor ,, Balance . . J.F 4 5 L.F 6 $ II28 1 128 171 2427 c. 00 00 80 80 Dr. BALANCE Cr. 1 868. Jan. 31 To Cash „ B. Rec'able ,, Merchandise ,, Warehouse, etc „ J. Boyd & Co ,, Morrison, T & Co ... . ,, Glynn, Mills & Co ... . „ F. & G. Per kins & Co „ J. E. Smith & Co ... . L.F $ c. 1868. I 612 19 Jan, 31 >> 352 14809 00 95i )» »j 2 3 4860 401 CO 65 >» »» M 1286 IS >> 1488 20 >} 10 00 6 171 80 94i 23991 By Reford & Dillon . ,,C.Moore&Co ,, B. Payable. ., Stock L.F $ 443 1 105 8674 13769 00 CO 45 49i 23991 94* WK BOOK-KEEPING-EiaHTH SET. 135 EXAMPLES OF SINGLE AND JOINT CONSIGNMENTS, ADVENTURES, FAC- TORSHIPS, PARTNERSHIPS, &c. i : If I purchase a Ship, I open an account for the Ship, debit that account to Cash, for the purchase money or to whatever other des- cription of property I have given for it, and credit tie account by whatever I receive by the Ship, as freight, &c., and, aiso, if I sell it, by whatever I may receive for it. If the account is to be balanced while the ship remair": in my possession, I must enter the Ship es- timated at its present value, on the Cr. side of the account ; and then the difference betAiveen the two sides will show the gain or loss which has arisen out of my purchase. The same directions are applicable to houses, land, or other property, from which I may receive returns without parting with it. I must open a separate account for every particular item of such property ; for example, every house, every faiTa, &c., wWch I pur- chase, or let separately, I debit such accounts to Cash, for all ex- penses laid out upon them, and credit them by all returns received from them. When I balance such accounts, I must, as in the case of Ships, enter on the Cr. side, the present value of the property, and the difference between the sides will show my loss or gain. If I ship goods on an adventure, I open an account for the adventure, describing it in whatever way may render it most distinct, as, Consignment per the (the name of the ship,) to (the name of the place), Consignee, Mr. or Messrs. (the name of the person or persons) : or simply, Consignment or Adven- ture, No. I, No. 2, &c., the particulars being recorded in the Waste I 1 m • < !• ii 136 » BOOK-KEEPING. Book, I debit this account with the goods shipped, or with Cash laid out in purchasing goods for the adventure, and with all Charges ; and credit the account with all returns. If the goods be all sold, the difference of sides will show ths result of the adventure. If part of the goods be unsold, I must, in balancing, enter the value of them on the Cr. side of the account, as in the former case, such value being taken as it originally stood, and stated in an inner column of the account, and a percentage deducted therefrom, of the supposed deduction, if any, in the valuej leaving the net account, or apparent real value, to be extended in the proper column, to show the true state of the account. If I receive goods to be sold on behalf of an employer, for a commission, I open an account of Goods for the Account of (the employer), this account is made Dr. for all charges, and Cr. by all receipts on account of the goods. If I sell goods thus consigned to me on credit, I make the purchaser Dr. to this account of goods ; when the goods are all sold and the account is to be closed, by my remitting Cash or Bills, the account is made Dr. to the Cash or Bills remitted, and to Profit and Loss for my commission ; or if I have an account open for commissions, the amount of the commission is placed to the credit of that account. If the account is to be balanced before the goods are all sold, or the proceeds remitted, I open a per- sonal account for my employer, and credit him therein with what I may have received from the sale of his goods, and debit him vvith what I have expended on the goods, also wiili my commission on the amount sold, up to the time when the balance is struck and fur- nished to him. The chief peculiarity of accounts of goods received to be sold on commission, is, that the value of the goo,ds ret-eived is not entered on the Dr. side of the account in my Ledger, because tuey do not belong to me. I keep the account of them in a separate book, as EIGHTH SET. 13t still belonging to my employer, although entrusted to mv care ; but, having entered on the Cr. side of the account of such goods what- ever Cash or other property I receive for them, I enter on the Dr. side, what I remit to my employer, together with charges and com- mission. If I do not remit to him Cash that I receive for his 'goods immediately, I credit his personal account with the amount of his goods sold by me, and debit it with my commission. If I advance any proportion of the value of the goods consigned to me, before they be sold, I open a personal account with my employer as before alluded to, debit that account with the money advanced to him, and credit it for whatever I sell, the difference wUl then show how much he owes me, or how much I owe him. There are three cases of partnership. First, when I entrust, goods to another person to trade with on my behalf and his own, under certain stipulations. In this case, I state the terms of the co-partnery in the Waste .Book, and open an account for it in the- Ledger, designating it briefly and clearly. If I engage in several such co-partneries, I may describe them, Company No. i, No. 2, &c. This account is debited to the Goods or Cash, which I contri- bute to the joint stock-in-trade, and credited by everything either of Goods or Cash, &c., that I receive from it. When the account is to be balanced, my Partner must ascertain the value of the goods re- maining unsold, estimate the profit and loss in the ordinary way, calculate my share of either. If he pay me my share of gain, or I pay my share of loss, I debit the account for what I pay to Cash, or credit it by Cash for what I receive, as the case may be. The dif- ference between the two sides in the Company Account will show the profit or loss, which must be entered accordingly. If my Partner do not pay me my share ol gain, or I do not pay my share of loss, I Cr. theiaccount, By Balance for my share of gain, or Dr. it. To Balance for my share of loss, after which, the account is to be closed like any Goods Account, by Profit and Los.« Ik ' M Ili'tS hni 138 BOOK-KEEPING. The second case of partnership is, when I am entrusted with property to trade with, on behalf of myself and others, on certain stipulated terms. I enter the terms in my Waste Book, and open an account for the Company as before ; but in this case, I open also an account for the " Goods in Company," or accounts for the different kinds of g< lods in Company. I debit these accounts for whatever goods or cash I contribute to the Company's stock. I then make the Company's account Dr. for all the outlay I incurred . by it, and make it Cr. by all that I received for it ; if the outlay was for goods to be added to the Company's stock, I make the account of "Goods in Co." Dr. for the outlay ; and, if I receive for the Company, Cash or Bills, I make my own accounts of Cash or Bills Receivable, Dr. to tie Company's account. If I purchase goods on credit for the Company, I make the account of the Goods in Co. Dr. to the person from whom I purchase. If I sell on Cr., on behalf of the Company, I make the person to whom they were sold Dr. to the Goods in Company. ' ■ When I would settle with my partner, I find the gain or loss upon the " Goods in Company" Account in the usual way, and that gain or loss upon the Goods, I transfer to the Partnership Account, making that account Dr. to the " Goods in Company" Account, for loss, or Cr. by it for gain. The difference between the two sides of the Co-partnery Account will show the gain or loss upon the whole business of the Company. I then calculate the shares of gain or loss for each Partner, ac- cording to the terms of the Partnership. If I pay my Partner his share then the Company Account is Dr. to Cash, for his share of gain, and to Profit and Loss for mine. If his share is not paid, then I open an account for him personally, and make the Company Ac- count Di. to his Personal Account for his share, and to Profit and Loss for mine. If loss was sustained, and he pay his share, then the Company Account is Cr. by Cash for his payment, and by Profit EIGHTH SET. 139 and Loss for my share of loss ; if he do not pay at the time, I open, as before, a Personal Account for him, and make him Dr. to the Company Account for his share of the loss, and Profit and Loss Dr. for my share. The third case of partnership is when the several Partners take part in the management of the joint trade. In that case books are kept as for the tr^e of an individual. The Real Accounts, as Cash, Bills, &c., are the accounts of the Company ; the Personal Accounts are accounts of persons dealing with the Company ; and the Ficti- tious Accounts show the gains or losses of the Company. Besides these accounts, an account is opened for each Partner, and each is made Dr. for whatever he receives from the Company, and Cr. for whatever he pays on its behalf. When a settlement is to be mad^ the books are balanced as in ordinary cases. The gain or loss is ascertained also, by comparing the two sides of the Profit and Loss Account. Here, however, occurs a difterence between books be- longing to a Company, and books belonging to an individual. The gains or losses are not properly gains or losses of the Company, but of the individual Partners of the Company, to be distributed among them according to their respective shares. The balance of the Profit and Loss Account, therefore, is not carried to the Stock Account, but it is divided among the Partners, and carried to their perl^onal accounts ; if gain, to their credit ; if loss, to their debit. The Stock Account, therefore, does not show, as in ordinary cases, the net profit made, or loss mcuired, for the Stock of the Company receives no accession by profit made, or diminution by loss sustained, the profit going to the individual Partners, and placed to the credit of their Personal Accounts ; and loss being also charged to the Partners, by being carried to the debit of their Personal Accounts. Different methods are adopted by different Book-keepers in closing the Stock Account of the books of a Company. Perhaps tlie following is as sImpU' and clear as any. Place as usuiil the gross % « ( '■■ i ! tl I 1i: ?''i I '<' 140 BOOK-KEEPINQ. value of the property of every kind, actually in possession of the Com- pany, including the debts due to them, on the Cr. side of the Stock Account. If profit has been made, this inventory will of course in- clude it, showing an overplus above the standing capital. The Balance of the Balance Sheet, brought to the Dr. side of the Stock Account will correspond with the standing capital, exclusive of gain ; and to make the Dr. side equal, bring the sums placed to the Cr. side of the Partners' Account to the Dr. side of Stock. The profits made, will then appear as debts due upon the Stock, to the Partners of the Company ; and losses will appear on the Cr. side of Stock, as debts due by the Partners to the Company. If any transactions took place previous to the balance being made, between the Company and any of the Partners, such as, his receiving money before profits are ascertained, hi'^. account must be balanced among the other Personal Accounts, before ascertaining the loss or gain of the Company. But the profits or losses of that period, and .Irst ascertained in the balance, are merely to be entered to the Partners Personal Accounts, to stand to their debit or credit for the ensuing year. If any Partner wishes his share of gain to be added to his share of capital in the Company, and the company agree to it, then his share of gain, after being entered to his credit, must be entered also on the debit side of his account, "To Stock," and from thence being carried to the Cr. side of the Stock Account, makes the intended increase to the capital of the Company. If the partnership is at the same time to be dissolved, the Stock on hand must be sold or valued, the debts inwards collected, and outwards paid, and each Partner's share of the property paid to him, or of debts received from him. It however frequently happens that some one or more of the partners, or some other person or company takes the stock and debt of the Company at a valuation, and then becomes Dr. to each of the Partners, for his share of the property, as per valuai'on. EiaHTH SET. ui WASTE BOOK. The following transactions are copied from Bretvster's Ency- clopaedia. These have been chosen partly because they comprise in a narrow compass the chief difficulties of Book-keeping, and partly to show that th« directions are applicable to business trans- actions generally. TORONTO, 1ST JANUARY, 1868. AN INVENTORY OF MY EFFECTS AND DEBTS ACTIVE, TAKEN THIS DATE BY ME, A. B. J.F I >> >> • » I have in ready money $ 8000 00 In the Royal Canadian Bank i6ocx) 00 My House and Furniture are worth 7200 00 7 pipes of Port Wine, A 2240 00 Delivered 4 pipes into Co. i, under the direc- tions of James Higgins 1280 00 Taken 5 tons of Madder into Co. 2, with John Scott (Mark A) 1200 00 Due to me, — By Robert Runner 400 00 ,, John King, our account of Exchange in Co. 3 2000 00 ' 1 00 h ! 142 BOOK-KEEPING. TORONTO, 2ND JANUARY, 1868. J. F. I Bought of Thos. Willan, for ready money, 3 tons of Madder, at $io.66§ per cwt., mark B 2 Sold for ready money, i pipe of Port Wine . . . This transaction and the last are for Cash, and mivst be entered accordingly. ■• 3 Bartered with James Reeves, i pipe of Port Wine, for 1^ tons of Madder, at $12 per cwt, M. C When one kind of goods is bartered for another, make that which comes ia Dr. to that which goes out. 2 Lent James Walsh, to be repaid me ii\ one month, with interest at 5 per cent 4 Drawn on John King, of London, O. A. of Exchange, a Bill of $200 at usance, favor of James Quinn, or order, value received of do., at ij per cent, advance $ 640 376 360 400 00 00 00 CO 202 50 I have entered into a Partnership with John King, of Lon- don., by which I draw Bills on him, and sell them, receiving the advantage of the Exchange. I had $2000 in his hands, as appears by the inventory of my goods, and this transaction is drawing a Bill on him and obtaining i-} per cent, for it. I have an Account for this Partnership, under the title, John King, !. ■» c. oo oo 00 CO 50 Lon- 2iving Is, as on is have ECing, EIGHTH SET. TORONTO, 4TH JANUARY, 1S68. 1^ our account of Exchange, Co. 3, and I make Cash Dr. to that account for the whole sum received. O. A., in the entry, signi- fies our Account. J.F. I Drawn on John King, of London, O. A. of Exchange, a Bill of $1800, at usance, favor of James Williams, or order, value received of do., at I per cent, advance This is a trarsaction similar to the last, and to be entered in the same manner. Received from James Higgins, the account of the sales of our Red Wine, — The total sales of 8 pipes $2880 oo His commission of 2J per cent. ... 72 00 $ The net proceeds 2808 00 My half is 1404 00 Which he paid me by a draft on the Royal Canadian Bank for that lodged there. sum, and which I c. CO 1404 00 James Higgins and I contribute each 4 pipes of Port Wine to be sold, and the profits equally divided ; but as he is to have the charge of selling them, he is to receive, beside his share of the profits, 2^ per cent, commission. The value of my share of the Wine as stated in the inventory, was $1280; he sells the whole for $2880, his commission is $72, the remainder is $2808, which is to be equally divided between us; my share is $1404, which he pays me by a draft on the Royal Canadian Bank. I have already an account opened for this Partnership, under the title, "Adventure in Co. i," which was debited to Stock, for the Wine embarked in it. fidillfiiF .1 I -I « I 4 ,<^ \ 111 ■ ^ I Ml i m 144 BOOK-KEEPING. TORONTO, 4TH FEBRUARY, 1868. I now credit it, By the Royal Canadian Bank for the amount received on its account. : 5 ^ J. F. 2 Received fro a ti e Royal Canadian Bank, the I. k.'ic?: i ^ht Inferos'. Accouut, ending 2. T'. $ t6o 00 In Canada, the Banks^rs give interest for money lodged with them, and take interest for money advanced by them. In settling this account, the balance was in my favor, and the Royal Canadian Bank pays me $160 interest. Here I may, either, first make the Royal Canadian Bank Dr. to interest or to Profit and Loss for the interest due, and rhen make Cash Dr. to Royal Canadian Bank for the payment of it ; or I lay at once make Cash Dr. to Profit and Loss for the interest paid me by the Royal Canadian Bank. 6 Sold for the account of Co. 2, to James Tay- lor, for an accepted Draft on the Royal Canadian Bank, the 10 tons of Madder, marked A., — I ton, at $16 per cwt $ 320 00 9 » » 14 M 2520 00 My commission on the Sale, at 2J per cent 2840 00 71 00 2769 00 My half is 138450 John Scott's half is 1384 50 Lodged the Draft on the Royal Canadian Bank, and paid John Scott by my Draft on the, Royal Canadian Bank CO 50 amount oo oo 50 oiJIGHTH SET. TORCMTO, 6th JANUARY, 1868. Wb By tue inventory it appears 'il.at I contributed 5 tons of Mad- der to a partner.ship entered Into with John Scott, he contributing an equal ruan*",/ ; the whole being under my charge, for which I am to receive a Commission, besides an equal share of the profits. I have already opened an account for this Partnership, under the title of Co. 2, with John Scott. I sell the whole for a draft on the Royal Canadian Banlf. As in the case of Co. i, I first deduct my commission, then I pay John Scott his half by a Draft on t'^ iv -il Canadian Bank. Here, in the first place, I make the Re 'h1 C i- dian Bank Dr. to Co. 2 for the whole amount of the D'v t hich I have received upon it. I then make Co. 2 Dr. tj Comm: ''jn, or Profit and Loss for my Commission ; and to John See •^'s Personal Account for his half of the net proceeds, which I owv .d n. And lastly, I make John Scott's Personjil Account Dr. to Royal Canadian Bank, for the Draft which I paid him. Or opening no Personal Account for John Scott, I might have made Co. 2 Dr. to Commis- sion, and to Royal Canadian Bank, for the Draft given to John Scott. n J.F. 2 Remitted to John King, of London, for our account of Exchange, John Ker's Dratt of $1200, at usance, on Coutts & Co., of London, which I purchased by my Draft on the Royal Canadian Bank c. 00 This is money remitted to John King, to be drawn for, agree- ably to the terms of the Partnership. .h * i> 146 «MI BOOK-KEEPING-. TORONTO, iiTH JANUARY, 1868. I make Co. 3 Dr. to Royal Canadian Bank, for the Draft by which I purchased the Bill on Coutts & Co. J.F. 2 12 Shipped in the Lark, of Leith, Paul Henry, master, and consigned to William Kane, of Hull, to sell for my account, 4)^ tons of Madder, at First Cost, — 3 tons, B $640.00 1^ tons, C 360.00 Paid freight, f:c .. 54.00 $ 1054 00 This is a case of Consignment. I open an account for voy- age to Hull, and make it Dr. to the Madder, and to Cash for the Expenses. * • 13 Sold William Ker, at 2 months,- I pipe of Port Wine .13- Bottled for the use of the house, ^ pipe of the ?ort Wine And used the remaining half to fill those that leaked 348 160 00 00 I make the account of Charges, or of House expenses Dr.' to Port Wine, for the J^ pipe bottled. The other J^ pipe I enter on the Cr. side of the Port Wine Account, in the inner column, to account for diminution of quantity, but do not carry out the value of it into the money column, unless I keep an account of Leakage, which would not be necessary. EIO-HTH SET. t47 J.F. 3 TORONTO, 13TH JANUARY, 1868. Counterbalanced by the desire of John King of London, what I owe him, by the Invoice of Madder, received this date, against what he owes me, by our Account of Exchange. — The balance to Jfc brought to his ac- count. — The balance to be divided is He shipped in the Fame, James Lawson, master, 5 tons of madder, at $12 per cwt. 50 00 II I had, on commencing, $2000 in the hands of John King, for the Account of Co. 3, to which I afterwards add a Bill of $1200, but which I purchase for $1188. I drew upon him for two sums, making together $2000. So that he has of mine, according to this statement, $1188 ; but I had made profit by the Bills which I drew on him, which was to be equally divided with him. To close this account he sends me Madder, to the value of $1200, and desires me to settle the account, and to give him credit for what balance may be over. Here, I first make Madder Dr. to Co. 3. I then make the same Co. 3 Dr. to John King's Personal Account, for his share of the profit ; and to Profit and Loss, for my share cf it, /. e., $16.25 each. .25„ Robert Runner is dead, and Insolvent — what he owes me is lost 400 00 This appears to be a total loss. I make Profit and Loss Dr. to Robert Runner for the whole. Should I afterwards receive HMM i ! I i( m| , illi I .fHi' 148 BOOK-KEEPINa TORONTO, 2STH JANUARY, 1868. any dividend from his Estate, I should make Cash Dr. to Profit and Loss for it. J.F. 3 26 Bought of James Henry, at the Auction Sales, at Six Months, with the condition of the abatement of i per cent, per month for ready money, — 5 pipes of Port Wine, at $300 per pipe This Wine was bought on credit, and the name of the Agent of the Sales was James Henry. Port Wme, therefore, is Dr. to James Henry. 26 Bought of James Ker, on my note, payable at 2 months, — 4 tons of Madder, at $1 1 per cwt In return for this Madder, I gave my own Note or Bill payable at 2 months. I therefore say, Madder Dr. to Bills Payable. 2 7- Discounted to James Henry, the Agent of the Sales, my debt for the 5 pipes. Port Wine, — The Discount is $ 90.00 The Sum due 1410.00 Paid by my Draft on the Royal Canadian Bank $ 1500 880 1500 c. 00 00 00 In purchasing the Port Wine on the 26th, at six months, the Agent agreed that if I choose to pay ready money, he would allow me one per cent, for every month. I act upon this agree- ment, and take the Discount, amounting to $90 ; the balance f EiaHTH SET. TORONTO, 27TH JANUARY, 1868. 10 $1410, I pay by a Draft on the Royal Canadian Bank. Say, James Henry Dr. to Royal Canadian Bank, and to Discount, or to Profit or liOss for Discount. a; J.F. 3 Discounted to James Ker, my Note, paya- ble in 2 months, at 6 per cent, per annum. The Discount is $ 8.72 The Sum paid 871.28 $ 880 c. • I had given James Ker, for Madder, purchased on the 26th, my Note payable in two months. He wishes for ready money, which I agree to give upon his allowing me the Discount or Interest for two months. The discount is $8.72, and I pay the remainder in Cash. Bills Payable had already been made Cr. by Madder ; I now, there- fore, make Bills Payable Dr. to Cash, and to Discount, or to Profit and Loss for Discount. 28 Paid James Taylor, the award of the Ex- aminers vho viewed the hogshead of Mad- der, M. A., by draft on the Royal Canadian Bank, — My half is :$2i.oo John Scott's is 2 1.00 00 In company with John Scott, Co. No. 2, 1 had sold Madder to James Taylor, (see entry Jan. 6,) one hogshead of which proved to be damaged. This being examined by competent persons, thoy awarded $42 as the amount of the damage. This I pay in Cash, •T!: W'ii piB !■! 150 BOOK-KEEPING. TORONTO, 28th JANUARY, 1868. clurging one-half to John Scott Cash is Cr. by Profit and Loss, for my share of loss, and by John Scott for his. J. F. 4 28 Paid for the honor of William Kane, of Hull, his Draft of $200 on James Hen- ry, protested yesterday for non-pay- ment $200.00 Charges of Protest 2.00 Commission, ^ per cent i.oo $ !03 00 William Kane, of Hull, to whom I had sent Goods on consign- ment, neglects to provide for the payment of a Bill when it becomes due, and it is protested. But I believing in his solvency, pay the Bill, with the expenses of protest for him, charging him Commission. William Kane is Dr. to Cash, for Bills and Charges, and to Com- mission or Profit and Loss for Commission. 2nd February Received from William Kane, of Hull, an account of the sales of 4)^ tons of Madder, consigned to him the 12th current, — The total sales $1529.00 His charges $ 2.30 Commission and Insurance, 4 per cent 61.20 63.50 W ^)!; EIGHTH SET. TORONTO, 2ND FEBRUARY, 1868. 151 J. F. For which he has 1 emitted me a Draft of Lane & Co., on King & Co., at 7 day's sight, for $1668.50, which includes my former demand of $203 $ 1668 c. 50 William Kane having sold my Goods consigned to him, sends me returns of the Sales, deducting charges and his com- mission, enclosing a Draft or Bill at 7 days, for the amount due to me on the consignment, and also for the Bill which I had paid. Bills Receivable, therefore, is Dr. to Voyage to Hull for the net proceeds of the Consignment, and to William Kane, for the amount of the Bill, which I had paid for him, with the Charges an 1 Commission. m « Received from James Walsh, $400 lent him. with interest . . . . Paid the Expenses of the House for the last month $200.00 Salaries 80.00 Petty Charges 14.00 401 294 ijti- 11 i 11 M 152 J.F. 4 BOOK-KEEPING-. TORONTO, 4TH FEBRUARY, i868. Took Stock and found on hand as follows : Cash * . . , In Royal Canadian Bank House, &c Wine, 8 pipes Madder, 9 tons Bills Receivable John Scott, H. A $ 21.00 William Ker 384.00 4._ Debts due to me, — John King, of London . $ 8455 ^ I626I so 7200 00 2460 00 2079 60 1668 SO 405 00 38529 16 c. 96 25 This set may be balanced from the Books without taking Stock, as the quantities of the goods received and sent out were regularly entered. In real business, however, the goods on hand should be compared with the balances of the quantities shown by the books. The Ledger is to be posted from the Journal and balanced, as in former sets ; taking care, in the case of co-partneries and com- missions, to follow the directions given in the introduction to this Set. Eighth Set— Questioiis. 153 QUESTIONS ON THE EIGHTH SET. 00 00 60 50 00 96 25 Of what transactions does this Set treat ? If you purchased a Ship, how would you enter the transaction in your books ? Suppose you received a certain sum for freight, how would you enter it ? How, if you sold the Ship ? If you should balance the account whilst you have the ship, how would you enter the ship ? With what other description of property would you pursue the same plan ? If you ship goods on an adventure, how would you proceed? Suppose part of the goods were unsold, how would you manage when balancing the books ? If you receive goods to be sold on behalf of an employer, for a commission, how would you open an account ? When you sold goods, how would you enter the receipts? How would you enter Cash c- Bills remitted to your employer? How, your Commission ? Wh it is the chief peculiarity of accounts of goods received to be soil on commission ? How many cases of partnership? What is the first? In what book would you state the terms of the co-partnery ? In what book would you open an account for it ? How would you debit this account ? How credit it ? What must be done when the accounts are to be balanced ? If your partner paid you your share of gain, how would you enter it ? How, if you paid your share of loss ? How would you manage, if you neither received your share of gain nor paid your share of loss ? How is the account to be closed ? What is the second case of partnership f What other accounts would you open in this, besides those in the former case? When you contiibute goods or cash to the Company's ptDck how do you enter it ? How, if you received Cash or Bills ' How, if you purchased goods on credit for the Company ? How, if you sell on credit ? When you would setde >f i i nil BOOK-KEEPINa. with your partner, upon what account would you find the gain or loss? To what account would you transfer this when found ? On what side of the account is the gain to go ? On what the loss ? What will the difference of the two sides of the Co-partnery Account show ? If you pay your Partner his share, how would you enter it ? What would you do if his share is not paid ? If your Partner pays his share of a loss sustained, how do you enter it ? If he does not pay it at the time, how then ? What is the third case of partnership ? How are the books kept in this case ? What do the Real Accounts show ? What do the Personal Accounts show ? What the Fictitious ? What- peculiar accounts are necessary? When is a Partner made Dr. ? When Cr. ? On which side of the Partner's Account is gain entered ? On which loss ? How is the gain or loss stated in the Stock Account ? Why is gain not stated on the Cr. side of the Stock Account, as in ordinary cases ? If a Partner choose to add his share of gain to the Capital, and the Company agree to receive it, how is that to appear in the Partner's Account ? How is it to appear in the Stock Account ? If the partnership is to be dissolved, what must be done with the Stock ? What with the debts ? Suppose that the Stock of the Company, or the debts due to it, were bought by an Individual or Company, in what relation would that Individual or Company stand to the Partners ? i! lir' — 0^>o»>- SmGLE AND JOINT CONSIGNMENT. ADVENTURES, FACTORSHIPS, PARTNERSHIPS, &c ii:-t ri EIGHTH SET. M if ' '. \k 156 FOL. • I JOT3RNAI.. TORONTO, 1ST JANUARY, 1868. L.F I »> >i 2 Sundries Dr. to Stock, — Cash Royal Canadian Bank House and Furniture Port Wine, 7 pipes (A) Adventure in Company I with James Higgins, 4 pipes ■: Madder in Company 2 with John Scott, 5 tons Robert Runner John King, our account Exchange in Company 3 P.D. B 141 Madder Dr., — To Cash, 3 tons Cash Dr., — To 1' irt Wine, i pipe Madder Dr.,- To Port Wine James Walsh Dr., — To Cash Cash Dr., — To John King, O. A. Exchange Co. 3.. I Cash Dr., — 3 } To John King, O. A. Exchange Co. 3.. 142 142 142 142 142 142 $ 8000 16000 7200 2240 1280 1200 400 2000 c. 00 00 00 00 00 00 00 00 $ 38320 640 376 360 00 00 00 00 400 ' 00 202 1818 SO 00 ii > . . EIGHTH SET. 16t TORONTO, 4TH JANUARY, iS68. L.F I 2 I 4 Royal Canadian Bank Dr., — To Adventure Co. i Royal Canadian Bank Dr., — To Profit and Loss for Interest . I 2 2 3 2 3 4 I 3 I 4 3 I Cash Dr.,— To Royal Canudian Bank Sundries Dr. to Sundries,— Royal Canadian Bank, Madder Co. 2 A Madder Co. 2, John Scott's half Madder Co. 2, Commission John Scott, draft on R. C. B To Madder Co. 2 ,, John Scott, his half ,, Commission , ,, Royal Canadian Bank Draft ,, Favor John Scott II P.D. B »43 144 144 144 $ 2840 1384 2840 1384 71 1384 50 John King, O. A. Co. 3, Dr.,- To Royal Canadian Bank »45 12 Voyage to Hull, Dr. to Sundries, — i 146 Madder, 4^ tons Cash FOt. 2 c. $ 1404 160 j 160 CO 50 00 50 00 S6S0 50 00 • 00 00 00 00 5680 00 13- William Ker Dr., — To Port Wine, i pipe 146 looe 00 54- 00 mm- 00 '! 168 FOL. 3 JOURNAL. TORONTO, 13TH JANUARY, 1868. L, F 5 2 Charges Dr., — To Port Wine, half pipe . . , ,, Leakage, remaining half 13 Sundries Dr. to Sundries, — Madder D John King, O. A. Exchange, his half . Do. do. do. my hair. To John King, O. A. Exchange do. his pt. ac. gained . . Profit and Loss .25. do. Profit and Loss Dr.,- To Robert Runner . . . . .26. Port Wine Dr.,— To James Henry . . . Madder Dr., — To Bills Payable. 26. 27. James Henry Dr. to Sundries, — Royal Canadian Bank Profit and Loss for Discount .27. Bills Payable I r. to Sundries,- Cash Profit and Loss for Discount .28. Sundries Dr. to Cash,— Profit and Loss — my half John Scott, H. A. his do. P.D. B $ c. $ 146 160 147 147 1200 l6 16 00 25 25 00 25 25 1232 1232 I2CO 16 16 147 400 I4S 1500 148 880 148 I4IO 90 00 00 1500 149 871 8 28 72 880 149 21 21 00 00 42 c. 00 so SO 00 00 00 00 00 00 EIO-HTH SET. 159 TORONTO, 28th JANUARY, 1868. FOL. 4 L. F 6 I 4 4 6 William Kane Dr. to Sundries,- Cash , Commission , 2nd Feb. Bills Receivable Dr. to Sundries, — Voyage to Hull William Kane I 3 3 4 6 I I I 2 3 6 3 5 6 5 Cash Dr., — To James Walsh , James Walsh Dr.,- To Profit and Loss , Charges Dr., — To Cash Balance Dr. to Sundries, — Cash Royal Canadian Bank House and Furniture Wine, 8 pipes Madder, 9 tons Bills Receivable . . . . John vScott, H. A William Ker Balance Cr., — By John King, H. A P.D. B 150 150 151 151 151 152 152 $ 202 I 1465 203 21 384 c. 00 00 50 00 CX3 00 $ 203 1668 401 294 00 SO 66 66 00 405 38529 16 00 96 25 ipli ;i ' ' '\i f w. 8455 36 l*!'l! ,,|;'!^ I626I so 7200 "oo 2460 00 2079 60 1668 so 160 nsDEX TO LEDGER. EIGHTH SET. yi' A L.F. Adventure, Co. i 2 B Bills Payable 6 Bills Receivable 6 Balance 6 C Cash I Commission 4 Charges 5 > H House and Furniture i Henry, James 5 K King, John, O. A 3 Ker, William 5 King, John, pt. account 5 Kane, William 6 M I,. IT. Madder, Co. 2 Madder 2 "1 D i868. P • Jan. I Profit & Loss A >» >» 2 4 • R ■* >> »t Feb. S 2 Royal Canadian Bank ( Runner, Robert 2 S « •> 5 Stock I Di Scott, John, H. A .... 3 1868. Jan. I V >> 4 Voyage to Hull .... A 91 S .... ^ 6 W Wine .... 2 Feb. S Walsh, James .... ? Di 1868. ■ Jan. I Feb. _5 Ledger— Eighth Sot. FOL. I 10 1 FOI,. I Dr. STOCK. Cr. L.F $ c. i868. 6 38513 38513 63 63 Jan. Feb. I 4 »» 5 By Sundries. . . ,, Profit & Loss ,, Balance.... J.F I L.F 4 $ C. 38320 00 I 193 1 63 63 38513 38513 63 Dr. CASH. Cr. 1868. J.F $ c. 1868. j.p $ c. Jan. I To Stock I 8000 00 Jan. 2 By Madder . . I 640 00 »i 2 „ Wine .... >> 376 00 >> „ Jas. Walsh. I 400 00 i> 4 „ :.King,O.A «i 202 50 12 „ Voy.toHuU 2 54 00 »f »> „ .King.O.A >> 1818 00 27 „ B. Payable.. 3 871 28 f» 5 „ Rl. C. Bank 2 160 00 28 ,, Sundries . . >> 42 00 Feb. 2 „ .as. Walsh. 4 401 66 99 „ Wm. Kane. 4 202 00 Feb. 2 ,, Charges . . >> L.F 294 OQ 16 »» 4 ,, Balance . . 6 8454 88 10958 10958 16 « 5 To Balance . . 8454 88 Dr. ROYAL CANADIAN BANK. Cr. 1868. Jan. I II 4 i> II 1 Feb. 5 J.F $ c. 1868. To Stock ,, Adventure, I 16000 00 : Jan. II 1 Co. 1 ... . ,, Profit & Loss „ Madder, Co. 2 2 i> II 1404 160 2840 00 00 00 00 00 >i II Feb. II 27 4 20404 ,, Balance 16261 By Cash ,, John Scott. „ J. King, O. A ,, Jas. Henry. ,, Balance . . J.F 2 1} II 3 L.F 6 $ 160 00 138450 II8800 I4I0 00 I 626 I 50 20404 00 Dr. HOUSE AND FURNITURE. Cr. 1868. Jan. I 5 To Stock To Balance . . J.F I $ 7200 c, 00 00 1868. Feb. 4 # By Balance . . L.F 6 $ 7200 c. 00 Feb. 7200 lili ''I ' IMAGE EVALUATION TEST TARGET (MT-3) ^,, ^, / A #?*' :/j 1.0 I.I 2.0 lliil 1.25 j 1.4 ^ ^ 6" — ► o ^J" ^ Photographic Sdences Corporation ^\^ ;\ \ 4 «- 23 WIST MAIN STMET WnSVM.N.Y. 14SS0 (716) •72-4SU3 ■^v" >^ Mis 162 POL. 2 Ledger— Eighth Set. FOL. 2 Dr. WINE. Cr. i868. Jan. Feb. J.F $ c. 1868. To Stock „ Jas. Henry. I 3 2240 1500 00 00 Jan. fi >» If 2 >> 13 »» 00 00 Feb. 4 3740 ,, Balance . . 2460 By Cash ,, Madder . „ Wm. Ker. ,, Charges . By Balance. . . J.F 2 3 L.F 6 $ 376 360 384 160 2460 3740 00 00 00 00 00 00 Dr. ADVENTURE, Co., i, WITH JOHN HIGGINS. Cr. 1868. Jan. I Feb. 4 To Stock .... ,, Profit & Loss J.F $ C. 1868. I 1280 00 Jan. 4 L F 4 124 1404 00 00 By R. C. Bank JF 2 $ 1404 1404 c. 00 00 Dr. MADDER, In Co. 2, WITH JOHN SCOTT. Cr. 1868. J.F $ c. 1868 J.F $ C. Jan. »» I 6 i> To Stock .... ,, John Scott. ,, Commission I 2 »> 1200 1384 71 00 50 00 Jan. 6 By R. C. Bank 1 2 2S4O 00 Feb. 4 „ Profit & Loss L.F 4 184 so 00 , 2840 2840 00 Dr. ROBERT RUNNER. Cr. 1868. . J.F $ c. 1868. , J.F $ c. Jan. I To Stock .... I 400 00 Jan. 25 By Profit & Loss 3 400 00 FOL. 2 I. $ c. 376 oo CX) Ledger— Eighth Set. 163 FOL. FOL. 3 3 Dr. JOHN KING, O. A. of Exchange in Co. 3. Cr. 1868. Jan. I >> II >> 24 »» *« To Stock „ R. C. Bank. „ J. King's p. a. ,, Profit & Loss J.F. $ c. 1868. I 2000 00 Jan. 4 2 1 188 00 i» u 3 16 25 it 24 )$ 16 25 so 3220 By Cash . . , „ do. .. ,, Madder J.F. $ 202 1818 1200 3220 c. 50 00 00 SO Dr. MADDER. Cr. 1868. Jan. »» i> »* Feb. >> 24 26 <••*•# To Cash ,, Wine „ J.King.O.A „ Bills Pay'ble To Balance. , J.F. $ c. 1868. I »» 3 640 360 1200 880 00 00 00 CX) Jan. Feb. 12 4 3080 00 2080 00 Byvoy'getoHuU „ Balance . . . J.F. $ 2 1000 L.F 6 2080 3080 c. 00 00 00 Dr. JAMES WALSH. Cr. 1868. Jan. 2 Feb. «> To Cash . . . ,, Profit & Loss J.F. $ c. 1868. I 4 400 I 00 66 Feb. 2 401 66 By Cash J.F. $ 4 401 401 c. 66 66 Dr. JOHN SCOTT, H. A. Cr. 1868. Jan. Feb. To R. C. Bank. ,, Cash To Balance , J.F. $ c. 1868. 2 1384 SO Jan. 6 3 21 00 Feb. 4 1405 SO 21 00 By Madder Co. 2 ,, Balance .... J.F. 2 L.F 6 $ 1384 21 I4OS c. SO 00 SO if. i Ml ]■ »■;;■ i,: :t.; t ,1 if. ! 164 FOL. 4 Dr. Ledger— Eighth Set PROFIT AND LOSS. POL. €&. 1868. fan. Feb. To Robt. Runner „ Cash ,, Charges .... „ Stock J.F. $ c. 1868. 3 400 00 Jan. 5 >» 21 00 >> 24 5 454 00 i> 27 L.F »» »> I 193 63 Feb. *i >i 2 4 »» i> tt 1068 63 By R. C. Bank. „ J. King, O. A „ Jas. Henry.. „ Bills Pay'ble „ Jas. Walsh. ,, Adventure, Co. I . . . „ Madder, Co. 2 ,, Commission „ Vo'getoHull J.F. $ 2 160 3 16 tt 90 tt 8 4 I 2 124 2 184 4 72 II 411 1068 c. 00 5 00 72 66 00 SO 00 SO Dr. COMMISSION. Cr. 1868. Feb. L.F $ c. 1868. To Profit* Loss. 4 72 00 Jan. 6 i 00 fi 28 72 By Madder, Co. 2 " Wm. Kane.. J.F. $ 2 71 4 I 72 c. 00 00 00 Dr. VOYAGE TO HULL. Cr. 1868. J.F. $ c. 1868. J.F. $ c. Jan. Feb. 1 12 4 To Sundries . . . „ Profit&Loss 2 L.F 4 1054 411 00 SO Feb. 2 By B. Receivable 4 1465 SO > ■ * 1465 50 U6S SO Cr. POL. 4 p. $ c. i6o 00 i6 25 90 00 8 72 I 66 124 00 184 SO 72 00 411 SO 1068 63 Cr. ^ $ 71 I 72 c. 00 00 00 Cr. f. $ • 1465 1465 c. so 50 VOL. 5 Dr. Ledger—Eightli Set WILLIAM KER. Cr. 165 POL. 5 1868. J.F. $ c. 1868. 1 L.F $ c. Jan. 13 To Port Wine. 2 384 00 Feb. 4 By Balance . . 6 384 00 Feb. 5 To Balance... . 384 00 384 00 Dr. CHARGES. Cr. 1868. Jan. Feb. To Port Wine. „ Cash J.F $ c. 1868. 3 160 00 Feb. 4 4 294 454 00 00 By Profit & Loss L.F $ 4 454 454 c. 00 00 Dr. JOHN KING'S Pt. Account. Cr. 1868. Feb. L.F $ c. 1868. To Balance . . 6 16 25 Jan. Feb. 24 5 J.F By J.King, O. A ,, Balance. . . $ 16 16 c. 25 25 Dr. JAMES HENRY. ( ^.^■K* 1868. J.F $ c. 1868. J.F $ c. Jan. 27 To Sundries . . 3 1500 00 Jan. 26 By Port V/ine . 3 1500 00 m li 'li/'i- 166 FOL. 6 Ledger— Eighth Set. FOL. 6 Dl I. BILLS PAYABLE. ( Cr. i868. J.F $ c. i868. J.F $ c. Jan. 27 To Sundries . . 3 88o oo Jan. 26 By Madder .... 3 88o 00 Dr. WILLIAM KANE. Cr. i868. J.F $ c. 1868. J.F $ c. Jan. 28 To Sundries . . 4 203 00 Feb. 2 ByB.Rec'ble.. 4 203 00 Dr., BILLS RECEIVABLE. Cr. 1868. Feb. 2 5 To Sundries. . . To Balance . . J.F 4 $ 1668 c. 50 1868. Feb. 4 By Balance"*" L.F 6 $ 1668 c. 50 Feb. 1668 _, Dr. BALANCE. Cr. 1868. Feb. » t> II II II II il To Cash „ R. C. Bank ,, House, etc. ,, Wine ,, Madder.... ,, John Scott. ,, Wm. Ker.. „ B. Rec'able L.F $ c. 1868. I 8454 88 Feb. 4 II 16261 50 II >i II 7200 00 2 2460 00 II 2080 00 3 21 00 5 384 00 6 1668 50 88 38529 By John King , „ Stock L.F $ 5 I 16 38513 38529 25 63 88 roL. Cr. $ 880 c. 00 Cr. $ 203 c. 00 I il i ; il I? Cr. $ 1668 c. 50 NINTH SET. FIFTH SET DOUBLE ENTRY CHANGED TO SINGLE. \ N Cr. r $ C. 16 38513 25 63 38529 88 .! I II *» .'■ ■ •. x.'t. i,!,'. ^ ibb Day-Book— Ninth Set. TORONTO, 1ST JANUARY, 1868. L.F. I Cr. Stock,— Goods as per Inventory Cr. John Black & Co.,— Goods as per invoice I j Cr. James White, — Goods as per invoice . Dr. A. Macarthur, — I Euclid $ 1 50 I Walker's Dictionary 2 10 6 Spelling Books, at 15 c 90 50 Reading Books, at 40 c 20 00 Cr. James White, — Goods as per invoice . Cr. John Black & Co.,- Goods as per invoice . . . . Dr. A. Macarthur, — 24 Scripture Geography, at 10 c $ 2 40 100 Maculloch's Reading, at 60 c 60 00 20 Dictionaries, at 50 c 10 00 8 Dr. A. Macarthur, — 10 Thompson's Arithmetic, at 60 c $6 00 12 ,, Geography, at 40 c 4 80 • P.W.B. $ 55 4868 55 470 55 300 •% 55 a4 56 II 56 213 56 72 57 10 c. 45 75 65 50 20 60 40 80 p. AV. B. (Page Waste Book.) c. 45 75 65 Fifth Set, by Single Entry. TORONTO, 9TH JANUARY, 1868. 169 L.F. 2 To Stock, and found in my possession,- Cash Goods Debts due to me. 1 P.W.B $ 57 » 227 • » 5594 >» 27 5850 57 44 81 50 70 01 35 r.p^ 1 \ 1 1 : :fe.|' '• ^ ; 20 40 10 80 :::ii ■i!l;i|il' 170 Cash-Book— Ninth Set. FOL. 9 DR. CASH. 1868. L.F. Jan. I I >> 2 2 » 3 4 5 6 2 » »> 8 2 It >i 9 To Stock „ Goods, shop sales „ Profit & Loss, the late Mr. Gordon's Legacy „ Goo^s, shop sales » >» >» >» » >> >» » j» „ Profit & Loss, received for my bargain on a house „ Goods, shop sales „ A. Macarthur, on account.. „ Goods, shop sales To Balance .W.B. ^ c. 55 1019 50 » 52 87 » 74 50 » 54 85 >» 45 48 56 20 45 » 61 50 57 80 00 » 31 64 jj 80 00 )f 48 87 1569 66 227 81 '■ ■=!>".. Fifth Set, by Single Entry. 171 FOL. 'fii''.7 CONTRA. CR. $ c. 019 50 52 87 74 SO 54 4.1 85 48 20 61 45 50 80 00 31 80 64 00 48 87 569 66 527 81 1868. L.F. Jan. 2 I i> 4 )) M » 2 »» 5 I »f 6 » » M 2 » 8 I » 9 2 » » » By James White, on account „ James White, „ „ Expenses, Clerk's salary, J yr. „ J. Black & Co., remitted on ac't „ James White, on account „ Expenses, J year's rent of Warehouse „ J . Black & Co. , remitted on ac't „ Profit & Loss, money lost „ Balance P.W. B. $ 55" 80 56 160 » 150 » 400 » 71 » 200 57 240 >> 40 227 1569 c. 00 00 00 00 8s GO 00 00 81 66 n ! m V 1 , I.; 1 lii 172 FOL. I Dr. Ledger— Ninth Set. Fifth Set by Single Entry. STOCK. Cr. FOL, I 1868. )an. To Profit & Loss, Expenses, &c. ,, Balance, Net Capital L.F $ C. 1868. 2 « »» 23s 5805 SO 66 Jan. I »» 9 6041 16 Jan. 10 By Goods ,, Cash.. ,, Gain on Goods.. , ,, Balance P.D B. 168 170 $ 4868 1019 IS3 6041 $805 45 50 21 16 66 Dr. JOHN BLACK & Co. Cr. 1868. Jan. t* ToCash..C.B. M do „ Balance . . P.D $ c. 1868. B. 171 400 00 Jan. I i> 240 00 »» 6 L.F 2 44 35 684 35 Jan. 10 By Goods „ do. By Balance P.D $ B. .... 168 470 • • • • »» 213 684 • • • • 44 75 60 35 35 Dr. JAMES WHITE. Cr. 1868. Jan. »> ToCash..C.B. do. P.D $ c. 1868. B. 171 f> tt 80 160 3" 00 00 85 85 Jan. »» 3 5 By Goods . . ,, do. P.D $ B. 168 300 f> IJ 3" 65 2(7 85 * It will be seen by comparing: the above amount, $5305.66, that it agrees with the amount on hand aa shown bv the double entry method, Stock Account, page 68. The $235.50, on the debit side of stock, is my net loss for Expenses, etc. And the #153.21 is my net gain on goods sold. W. R. ORR. FOL. I Cr. $ 4868 1019 153 6041 5805 45 50 21 16 66 Cr. D $ )8 470 » 213 c. a 684 35 44 35 Cr. D $ c. • i8 300 65 1 iJ 2(7 3" 85 h the amount 235.60, on the p:ain on goods R. ORR. , FOL. 2 Dr. Ledger— Ninth Set. Fifth Set by Single Entry. A. MACARTHUR. 173,. FOL. 2 Cr. 1868. Jan. >i >> 4 6 8 10 To Goods .... ,, do » do To Balance .. P.D B. 1 168! >> 11 $ 24 72 10 c. 50 40, 8o| 70 70 107 Jan. 27 1868 Jan. 8 9 ByCash..C.B. „ Balance . . P.D B. 170 L F 2 $ 80 27 C. 00 /o 107 70 Dr. PROFIT AND LOSS.* Cr. 1868. Jan. 9 M >> ToCash..C.B. ,, Expenses . . P.D $ C. 1868. B. 171 40 1 00 Jan. 2 L.F »» 8 2 350 00 »» 9 390 00 By Cash „ do. ,, Stock P.D $ B. .70 74 >« 80 1. L.F I 23s 390 c. 50 •oo 50 00 Dr. EXPENSES.* Cr. 1868. Jan. ** ToCash..C.B. M do P.D $ c. 1868. B. 171 ISO 00 Jan. 9 >* 200 00 350 00 Dr. BALANCE. Cr. » IS68. Jan. 9 >i >> >> >> To Cash ,, Goods .... „ A.Macarthur P.D $ c. 1868. B. 169 227 81 Jan. 9 169 5594 50 L.F >> )> 2 27 70 01 5850 By J. Black & Co II oiOCK • • • • L.F $ C. „44 3S 580566 5850 01 * I have not found in any treatise on Book-keeping— in which a "Single Entry" set ii eiven— that the Nominal Accounts, such as Expenses, Profit and Loss, etc., liave been kept. !< I hi 9 . » I r*' p. i i ';«: 174 Ledger— irinth Set. The reason, 1 suppose, is, the apparent difficulty in closin?r the boolcs if such accounts were opened ; but I think the satisfactory manner in which this set is closed, shows the difficulty to be only ap{)arent. And it must be remembered that it tliese accounts are not kept, the ex- penses and casual gains and losses can not be shown at all. It is matter of astonishment that Morrison and Jackson, standard authors, should have overlooked this matter. Some of our American authors set over the difficulty by a subterfuge, \iz. , opening personal accounts. I think the subject of great importance, as I believe Single Entry better adapted to Retail busi- ness than Double Entry, as it does not require more than half the labor and expense, and is quite as satisfactory. Double Entry Book-keeping is valuable oniy to the trader when he can ascertain the exact amount of goods sold, which can not be practically done in a retail business W. R. ORR. »V=' I ^ , > v t > • t r, ■ • 1 1 t. , ( » • 1 • « • 1 • • e i ■ 1 i J c • i; c n (i c e ri a S W. R. ORR. BOOK-ZEEPINa 175 SUBSIDIARY BOOKS. When the transactions connected with any particular account in the Ledger are very numerous and small, it is usual to keep a record of them in a book by themselves, and to insert in the Ledger only the sums of the transactions added up at stated intervals. For example, it would be obviously ridiculous to enter into the Ledger every shilling or sixpence paid out or received. An account of such small sums, therefore, is kept in a book by them- selves, and added up once a week or once a month, and only the weekly or monthly sums put into the Ledger. Larger cash transactions are often treated in the same way. All receipts and payments are entered on the Dr. and Cr. sides of a Cash Book, and the sum of each side brought once a month into the Ledger, by which contrivance there never can be more entries in the Ledger than twelve on each side, namely, one for each month in the year. Sales are often managed in the same way. A book is kept for recording sales only, and the amount of sales added weekly or monthly to the Ledger. In some extensive retail trades every shopman is made to keep a book, which is added up every day, and the amount transferred to a general Sales Book, which again is added up once a week or month, and the sum entered in the Journal or Ledger. Sometimes, in stich trades, only one Sales Book is kept in the shop, and every shopman writes every sale that he makes on a slip of paper, and hands it to the Book- keeper, who enters it in the Sales Book. i i I n \ I \\ r ■ f. y W i i| i 31 176 BOOK-KEEPING. EXAMPLES OF A BOOK OF HOUSE EXPENSES. 1868. Jan. » ft » » » I) » 6 7 9 10 II » 14 16 17 »> » » 19 » 20 » 21 n » » » House Expenses Dr. to Cash. For a Scrubbing Brush „ mending a pair of Bellows... „ a new Tea Kettle „ mending the Crar / and 3 hooks „ a Fish „ 3 Washing Tubs „ tinning a large pot • and 4 saucepans „ a Goose and 2 Ducks „ a Turkey „ the Baker's Bill „ „ Butcher's Bill „ 3 lbs of Sausages „ a peck of Oysters „ a do. Onions „ a new Fire-shovel and Tongs „ a large Stewpan „ the Apothecary's Bill „ a load of Hay „ do. Straw „ the Farrier's shoeing White- foot „ curing Coachman's broken shin „ mending the Clock Carried forward to page 177 $ c. 20 lO $ I SO I 00 50 I 80 93 6 I 20 I 20 3 93 24 30 30 60 10 31 I 70 I 70 14 00 6 00 4 00 50 4 20 2 10 34 • 71 03 63 20 86 SUBSIDIARY BOOKS. 177 1868. Jan. 23 24 » 26 27 28 29 »> 31 House Expenses Dr. to Cash, (Continued. ) Brought forward from page 176 For a new Jack-line „ the Cook's Bill „ a Turbot „ a dozen of large Eels „ a do. of Lemons „ a Firkin of Butter „ a Cheshire Cheese, 20 lbs., at 17 c „ the Baker's Bill „ a Quarter's Rent $ c. 40 $ 71 3 50 2 10 I 50 30 5 60 3 40 4 30 40 00 61 132 c. 86 10 86 !: i!i ;' I These sums of each week's expenses, viz., $6.03, or 31.63, &c., arCj^at the end of each week, entered on the Cr. side of the Cash Book, " By house expenses," or by Profit and Loss for House Expenses. Nora.— This book will serve as au example for any descriptioD of Petty Cash Book. W. B. ORB. ■* »♦■■ CASH BOOK. The Cash Book is kept precisely on the same principles with the Cash Account in the Ledger; it is headed, on that account, Cash Dr., Contra Cr., the title, Cash, meaning myself in regard to Cash. Whatever Croh is received, therefore, is entered on the Dr. side and whatever is paid out, is entered on the Cr. side. ■J 1 1 178 BOOK-KEEPING. EXAMPLE OF 1868. Jan. T }> 2 » 6 » 8 » 17 » 20 » 25 Cash. Dr. To Stock brought from the last month.. „ Sir Robt. Johnston, received in full.. „ Ship James, received in full of John Herbert, for i-i6th „ Ship James, received of Capt. John Smith, in full for i-i6th „ Wm. Baker, Esq., received in part.. „ Canary, for one pipe sold to William Dello „ Sundry accounts $ 396 84 120 00 500 00 500 00 500 00 120 00 696 00 34832 c. 84 1868. Feb. I 10 12 14 20 28 To Balance brought from last month... „ Ship James, received of William Evans in full for i-i6th $ 27957 500 500 500 400 137 c. 74 00 „ Ship James, received of James Jack- son in full for i-i6th 00 „ Ship James, received of Thomas Tones in full for i-i6th 00 „ John Hammond, Esq., rec'd in full... .. Wm. Warner, received in full 00 40 • . 29995 14 c. 84 00 1 00 > 00 ) 00 00 00 84 c. 1 74 D 00 3 00 3 00 3 00 ; 40 14 1868. Jan. 4 >» 9 >» 1 23 26 » 27 » 28 » 30 » 31 » SUBSIDIARY BOOKS. A CASH BOOK. Contra. Cr. By Ship James, paid in part J, James Allen, paid in full „ Thos. Preston, Esq., paid in part „ Ship James, paid Thos. Young for Joiner's Work , „ Ship James, paid T. Pierce in full for Rigging „ Ship James, paid D. Smith in full for Repairs „ Ship James, paid Nathaniel Westal in full for Painting ,, House Expenses, paid Sundry Char- ges this month „ Balance remaining in hand 179 $ 300 5700 357 00 00 40 83 40 no 90 161 60 28 90 132 27957 90 74 34832 84 1868. Feb. 3 7 14 24 27 28 >> By Ship James, paid the Blocjc-maker in full „ Ship James, paid the Ship Chandler in full „ Voyage to Amsterdam, consigned to Jacob Van Hoove „ Voyage to Amsterdam, paid J. Adams for insuring 100 bags of Pepper „ Ship James, paid John Jones in full for Beef and Pork „ House Expenses, paid Sundry Char- ges this month , , Balance remaining in hand $ 79 2802 561 28 438 159 25925 c. 5c 60 57 07 ic 3? 93 29995 14 m w ,w-M "\\ <«i ISO BOOK-KEEPING. In transferring the entries of this book into the Ledger, the sum of each month only is entered at the end of the month. The sum of the Dr. side in the Cash Book is entered on the Dr. side in the Ledger, " To Sundries received this month ;" and the sum on the Gr. side of the Cash Book is entered on the Cr. side of the Ledger, '^By Sundries paid this month." This abridgment, however, only affects the Cash Account in the Ledger ; for every particular sum paid or received during the month must be entered to its corresponding account in the Ledger. Thus, after entering the sums of the month of January on the Dr. and Cr. sides respectively as above directed , I must turn to the account of Sir Robert Johnstone, Cr. side, and enter, "By Cash, $120." Then to the account of Ship James, Cr. side, and enter, " By Cash, $500." Having thus entered all the srans on the Dr. side, I must do precisely the same with the sums on the Cr. side. I must turn to the account of Ship James, Dr. side, and enter, " To Cash, $300." Then to the account of James Allen, Dr. side, and enter, " To Cash, $5700," and thus with all the other €DJtries. In the foregoing example of a Cash Book, the Cash is balanced every month, and the balance on hand carried to the following month. In entering the sums, therefore, in the Ledger, care must be taken to subtract these balances before making the entry. Thus, the entry in the Dr. side of the Cash Account in the Ledger for January is not $34832.84, but only $2436. For April, it is not $29995.14, but deducting the balance, it is only $2037.40. So the Cr. side entries are transferred before the two sides are compared, and the balance entered. -••♦- BOOK OF CHARGES ON MERCHANDISE. This is a subsidiary book in all respects like the book of House *fjcpenses, and is treated in the same manner. SUBSIDIARY BOOKS. INVOICE BOOK, OUTWARD AND INWARD. 181 The Invoice Book Outward is used chiefly by factors or agents, and contains copies of Invoices of goods sent abroad. The Invoice Book Inwards contains the Invoices of all goods received. This book is usually a common paper book, in which is pasted the original Invoices, with the charges added to them. Many book-keepers enter into the Journal from these books, other book- keepers prefer copying the Invoices into an Invoice book. THE SALES BOOK. In extensive retail trades, the Sales Book serves a purpose an- alogous to that of the Cash Book. It keeps the details of sales which are entered in the Ledger in sums at stated times, as once a week, or once a month. It is a book indispensable to factors or agents. It was formerly explained, that in accounts of goods receiv- ed on consignments, the value of the goods is not entered, but merely the expenses, on them, the receipts, for them, and the returns made to the consigner. But the accounts of the quantity and the sales of the goods for each consignment, are kept in the Sales Book, and it is from this book that the consigner is furnished with an ac- count of the goods with which he has entrusted his agent. BOOKS OF BILLS RECEIVABLE AND BILLS PAYABLE. These books contain in column, an account of every Bill re- ceived or paid away, stating the date, the drawer, the acceptor, th« sum, the time due, &c. 1 1 I "i ■ T I ♦ I lii I' -i 182 BOOK-KEEPING. THE LETTER BOOK. This book contains copies of all letters sent out. These copies are now very generally taken by a copying machine. Letters in- wards should be kept and arranged alphabetically, by the names of the writers, so that it is less necessary to keep copies of them. POCKET BOOK. When a Merchant transacts business from home, or when he attends markets, fairs, &c., he should keep a Pocket-book, in which to mark down every transaction, so that when he returns he may be able accurately to enter his transactions in the principal books. O-ENERAL OBSERVATIONS. 183 The pupil who has carefully posted and balanced the foregoing Sets of Book-keeping transactions must have learned that the chief skill in this art lies in a judicious selection of accounts ; for after the accounts are determined upon, the posting and balancing of them are mere matters of routine. Every diversity of trade or manufac- ture will necessarily have some modifications peculiar to itself ; but a steady adherence to a few general principles, such as the following, will conduct a Book-keeper through the intricacies of any descrption of business transactions. An account must be opened ft every species of property or adventure, the gain or loss on which is to be computed separately ; such as goods of every kind, ships, houses, voyages, partnerships, in short every form in which the merchant's property is embarked. When no advantage would be obtained by keeping a separate account of gain or loss, on different kinds of goods, they must be classed under one head as goods, merchandise, houses, &c. Every such account of property represents myself, or is my own account in re- gard to such property. Thus, when Cash or any kind of Goods is made Dr., it is I who am made Dr. When Cash is made Cr., it is I who am made Cr. '«• M An account must be opened with every person or company with whom I have dealings on credit, on either side, for it is obvious that I cannot have a correct account of the state of my affairs unless I know what I owe, or what others owe to me. Every kind of property that comes into my hands so as to be- come my own, must be entered on the Dr. side of the account of that kind of property ; and every kind of property that passes out of my hands so as to cease to be mine, must be entered on the Cr. side ol its own account. When property comes into my hands, but not so as to become my own, as when goods are consigned to me, I do not receive them into my Ledger, but keep an account of them m a separate book, merely entering in my Ledger what I pay out or re- ceive on account of them. If such goods become my own, I then open an account for them, or enter them to some account already open. When goods or li-. ii I ^' 184 BOOK-KEEPING-. any species of property goes out from me, still continuing to be mine, as when I send out goods on consignment, I do not entei it to the person's account to whom it is entrusted, but to the voyage, adventure, consignment, &c., to which it may be transferred. Every description of outlay for which no kind of property is received in return, or of income, for which no kind of property is exchanged, the amount of which when the books are to be balanced it is requisite to know, must have an account opened for it, such as interest of money, borrowed or lent, discount of bills, rent, wages, house expenses, gifts, legacies, &c. But if the general account only of such outlays and incomes is required, they may be placed at once to the Dr. or Cr. of the Profit and Loss Account. If any of them be kept separately, the balance must be placed to the Dr. or Cr. of the Profit and Loss Account, as all such accounts of outlays or in- comes are merely sub-divisions or branches of the Profit and Loss Account. , '^ Every transaction must be entered on two accounts, the Dr. side of the one, and the Cr. side of the other ; and consequently every sum posted in one account, must either be entered on the opposite side of another account, or divided among several other accounts. This rule is so absolute and universal, that at any stage of the progress of keeping the books the sum of all the Cr. sides must be equal to the sum of all the Dr. sides. The ascertaining of this is called a trial balance, which may be made at any time. Bills are treated like any other property, even Bills Payable ; that is, my own engagement to pay money put into the form of a bill, and given out of my hands, are so treated, and accounts are opened for Bills Receivable or Bills Payable, on the same principles on which an account is opened for Cash, or any species of goods. If a merchant, in balancing his books, would obtain a just view of the state of his affairs, he must not be satisfied with valuing his goods on hand at the price which they cost him, nor the debts due to him as if the amount of them were already in his hands in cash, but must mJi.e such deductions as the following : — GENERAL OBSERVATIONS. 185 1. For deterioration of goods, by being kept, if an} . This in any description of fancy goods must be considerable. 2. For the expense of collecting debts. 3. For the interest of money on debts not yet due, including Bills Receivable. For the probable amount of bad debts. These deductions should be placed on the Dr. side of the Profit and Loss account, so as to diminish the profits by so much. m ON CLOSING THE DIFFERENT KINDS OF ACCOUNTS. 1. All Personal Accounts are closed by the Balance Account. 2. All Real Accounts, except the Cash and Bills Receivable, are closed by a double balance. First, the quantity of any kind of goods remaining on hand, or property rem"'.iu.ng in any voyage, adventure, consignment, con- stitutes the balance of the account opened for that description of property. It is therefore entered to the Cr. of the Account, ! / Balance^ Secondly, after this balance is entered, the difference between the sums of the Dr. and Cr. sides of the account is the gain or loss upon that account, and the account is to be closed by the Profit and Loss Account. The Cash Account is closed by the Balance Account, because there is no such difference between the quantity of Cash remaining on hand, and the value of it, as there is between the quantity of any other kind of property, and its value in Cash. All , subordinate accounts of loss or gain, such as interest, Charges, &c., are closed by the Profit and Loss Account, being ac- counted but branches of that account. The Profit and Loss Account and the Balance Account are closed by the Stock Account ; and when the balances of these two accounts are added to the proper sides of the Stock Account, the two sides of that account will be equal, if the books have been cor- rectly kept . jj m § M ■ ' f ; i - C j.| ; I 1 1 1 ' 'i ;i '■- i ■■ 4 :d 186 Compendium of Merchants' Accounts. A SYNOPSIS OR COMPENDIUM OF MERCHANTS' ACCOVNTS. Containing Particular Rules for the true stating of Debtor and Creditor^ in all cases that can happeti in the whole course of a Merchants Dealing. The Accounts of Merchants are of three sorts, viz. : — I. Proper ; wherein the Merchant trades by and for himself ; which is either Domestic, i. e., Inland and at Home ; or Foreign, i.t., Abroad. II. Factorage ; wherein the Merchant acts as Factor in Com- mission, for one that employs him ; and this, also, is either Domestic or Foreign. III. In Company ; wherein two or more Merchants join together in trade, and have each a share of the gain, or bear a share of the loss, in proportion to his share in the Stock ; as is taught in the rules of Fellowship. 1. OF PROPER ACCOUNTS. ' I. DOMESTIC. IN RECEIVING AND PAYING MONEY. Case i. — When an inventory Is taken of the Ready Money. Goods, Voyages, and Debts, belonging or owing to me ; Rule. — Dr. those several parcels and parties, Cr. Stock or Principal. Case 2. — ^When an inventory is taken of the Debts owing by me : . / CompenditLm of Merchants^ Accounts. 1S7 Rule. — Dr. Stock or Capital, Cr. the several parties to whom the same are due. Case 3. — When money is received of one man for the use of another, or for his own use ; Rule. — Dr. Cash, Cr. the person for whose use it is received. The same when money is received for goods formerly sold. Case 4. — When money is paid to one man for the use of ano- ther, or for his own use ; Rule. — Dr. the person for whose use it is paid, Cr. Cash. The same when money is paid for goods formerly bought. Case 5. — When money is lent ; Rule. — Dr. the borrower for the principal, Cr. Cash. Case 6. — When money is borrowed ; Rule. — Dr. Cash, Cr. the lender for the principal. Case 7. — When interest is received for money lent ; Rule. — Dr. Cash, Cr. Profit and Loss. Case 8. — When interest is become due to me, and booked be- fore received ; Rule. — Dr. the person who owes it, Cr. Profit and Loss. Case 9. — When interest is paid for money borrowed ; Rule. — Dr. Profit and Loss, Cr. Cash. Case 10. — When interest is become due from me to another, and booked before paid ; Rule. — Dr. Profit and Loss, Cr. the person to whom it is due. Case ii. — When Charges are paid on Goods in my own posses- sion ; Rule. — Dr. those goods, Cr. Cash. Case 12.^ — When Charges are paid on petty disbursements in trade ; Rule. — Dr. Charges on Merchandise, Cr. Cash. Case 13. — When Charges are paid on House-keeping and all expenses thereunto belonging ; ' Rule. — Dr. Profit and Loss or House expenses, Cr. Cash. Case 14. — When India Stock, Bank Stock, South Sea Stock, or Annuity is bought ; : !'! ! h \ if ^i Hi 1S8 Compendmm of Merchants' Acconnts. Rule. — Dr. such Stock or Annuity, Cr. Cash. The same I: there be a call of $20, &c., per cent, upon my share in any capita! Stock. Case 15. — ^When Interest is become due to me on such Sto i . or Annuity, and booked before received : Rule. — Dr. the Stock or Annuity, Cr. Profit and Loss. Case 16. — When Indii^ Stock, Bank Stock, South Sea Stock. or Annuity is sold ; Rule. — Dr. Cash, Cr. such Stock or Annuity. Case 17. — When my debtor compounds with me, and I receive part of the debt for the whole ; Rule — Cr. the person who compounds for the whole debt, 1 ■ Cash for what I receive, and by Profit and Loss for what I lose. Case 18. — When I compound with my Creditor, and pay hini part of the debt for the whole ; Rule. — Dr. the person who receives it. To Cash for what I pa} , and to Profit and Loss for what is abated. Case 19. — When a Legacy is bequeathed to me ; Rule. — Dr. the Executor, Cr. Profit and Loss. Case 20. — When a Legacy is received ; Rule. — Dr. Cash, Cr. the Executor. If received before entered, Dr. Cash, Or. Profit and Loss. Case 21. — When I receive a Legacy for the use of another, myself being the Executor ; Rule. — Dr. Cash, Cr. the Legatee. Case 22. — When I pa'^ a Legacy for the use of another, myself being Executor. Rule. — Dr. the Legatee, Cr. Cash. Case 23. — When I receive money by assignment ; Rule.— Dr. Cash, Cr. the Assignor. Case 24. — When I give an Assignment, or Order, or Bill on my debtor to my creditor ; Rule.— Dr. my Creditor, Cr. my Debtor. i;! Compendium of Merchants' Acconnts. iso Case 25. — When I pay hioney to another by the Assignmeni or Order of my Creditor ; Rule. — Dr. my Creditor, Cr. Cash. Case 26. — When I receive a Promissory Note in payment, and book it ; Rule. — Dr. Bills Receivable, Cr. the person of whom you re ceive it in payment. • Case 27.— When I deliver the said note in payment after- wards ; Rule, — Dr. the person who receives it, Cr. Bills Receivable. Case 28. — When I pay Charges on House-keeping, and all thereunto belonging ; Rule. — Dr. Profit and Loss, Cr. Cash. IN BUYING AND SELLING GOODS. Case 29. — When I buy goods for present money ; Rule. — Dr. the goods bought, Cr. Cash, Case 30. — When I buy goods on trust ; Rule. — Dr. the Goods, Cr. the Seller. The same when payments are made to me, at several times, only mentioning in the Journal the several times of payment. The same, also, when goods are taken in lieu of a debt, either in part or in the whole. Case 31. — When I require an abatement on goods bought on trust, after they are booked, on the account of defects ; Rule. — Dr. the Seller for the abatement, Cr. the Goods bought. If the account of Goods be closed, Dr. the Seller, Cr. Profit and Loss. Case 32.— When I buy goods for part ready money, and part trust ; Rule. — Dr. the Goods, Cr. the Seller for the whole. Then Dr. the Seller for what I pay, Cr. Cash for the same sum. Or, Di the Goods to Cash fpr what I pay, and to the Seller for what re- mains unpaid. Case 33. — When I buy goods for part ready money, part trust, and part bills ; '1 I l\\ {1 t 1,1 ! If : (I is 1 '1 ^ m ill 100 Compendium of Merchants' Accounts. 4 Rule. — Dr. the Goods to Cash for what I pay, to Bills Receiv- able, and to the Seller for the rest. Case 34. — When I sell goods for present money ; Rule. — Dr. Cash to the goods. Case 35. — ^When I sell goods on trust ; Rule. Dr. the Buyer to the goods. The same when payments are made to me, at several times, only mentioning in the Journal the several times of payment. The same, also, when goods are sold in lieu of a debt, either in part or in the whole. Case 36. — When I make an abatement on goods sold on trust, after they are booked, on the account of defect ; • Rule. — Dr. the goods for the abatement to the buyer. If the account of goods be closed. Dr. Profit and Loss to buyer. Case 37. — When I sell goods for part ready money, and part on credit; Rule. — Dr. the Buyer for the whole of the goods. Then Dr. Cash for what I receive to the buyer. Or, Dr. Sundries to the goods. Cash for the money received, the Buyer for what remains unpaid. Case 38. — When I sell goods for part ready money, part trust, and part bills receivable; Rule. — Cr. the Goods by cash for what is received, by bills receivable, and by the buyer for the rest. Case 39. — When I buy several sorts of goods for ready money ; Rule. — Dr. each of them for its respective value to Cash. Case 40. — When I buy several sorts of goods upon trust ; Rule. — Dr. each of them for its respective value, Cr. the Seller for the whole. Case 41. — ^When I sell several sorts of goods for ready money ; Rule. — Dr. Cash to Sundries for the whole value, Cr. each sort for its respective sum. Case 42. — When I sell several sorts of Goods on trust ; Rule. — Dr. the buyer to sundries for the whole value, Cr. each sort for its respective sum. Compendiiim of Merchants' AccoTints. isi Case 43. — When I want rebate to be made on the present payment of money, for goods bought upon credit ; Rule. — Dr. the Seller to Sundries for the whole sum, Cr. Cash for the sum paid, Cr, Profit and Loss for the rebate. Note. -This is supposed to happen a day or two after the goods are bought and booked. Case 44. — When I make rebate on the present receiving of money for goods sold upon trust ; Rule. — Dr. Cash for the sum received, Dr. Profit and Loss for the sum rebated, Cr. the buyer by Sundries for the whole sum. 'NoTB.— This is supposed to happen a day or two after the goods are sold and booked. Case 45. — When I buy goods of a debtor, for a debt due to me, their value amounting to more than the debt, and the overplus is paid back in money presently ; Rule. — Dr. the Goods to Sundries for the whole sum, Cr. the Seller for so much as his debt was, Cr. Cash for the over- plus. Note.— If several sorts of goods had been bought, and the overplus returned by me, then first Dr. each sort for its respective value; Cr. the Seller by Sundries for their whole value ; secondly. Dr. the Seller for the overplus paid back, Cr. Cash for the same sum. Case 46. — When I sell goods to a creditor, for a debt due to him, their value amounting to more than the debt, and the overplus is returned to me in money presently j Rule.— Dr. the Buyer for so much as was owing to him. Dr. Cash for the overplus received, Cr. the Goods sold by sundries for the whole sum. NoTK.— If several sorts of goods had been sold, and the overplus returned to me then, first Dr. the Buyer to Sundries for their whole value, Cr, each sort for its res- pective value ; secondly. Dr. Cash for so much as is received, and Cr. the Buyer for the same sum. BARTER. Case 47. — When I give one sort of goods for another sort of equal value ; Rule. — Dr. the Goods received, Cr. the Goods delivered. Case 48. — When I give one sort of goods for another sort of greater or less value ; i|;' 'ti I' :i{ i; 192 Compendium of Merchants' Acconnts. Rule. — First, Dr. the Person who receives my goods, Cr. those goods j secondly, Dr. the Goods received by me, Cr. the person who delivers them. Case 49. — When I give one sort of goods for several other sorts of equal value ; Rule. — Dr. each particular sort of goods received for its res- pective value, Cr. the Goods delivered by sundries for the whole value. Case 50. — ^When I give one sort of goods for several other sorts of greater or less value ; Rule. — First, Dr. each particular sort of goods received for its respective value', as above, Cr. the Seller by sundries for the whole ; secondly, Dr. the same Person, as Buyer, and Cr. the Goods which he has bought. Case 51. — When I give several sorts of goods for one sort of equal value ; Rule. — Dr. the goods received to sundries for their value, Cr. each particular sort of goods delivered, for its respective value. Case 52. — When I give several sorts of goods for one sort of greater or less value ; Rule. — First, Dr. the Person to whom the Goods are deliv- ered to sundries, for their whole value, Cr. those Goods severally for their respective suras ; secondly, Dr. the goods received, Cr. the Seller. Cask 53. — When I give several sorts of goods for several other sorts, either of equal, greater, or less value ; Rule. — First, Dr. each particular sort of Goods received for its respective value, Cr. the Seller of them by sundries for the whole value ; secondly. Dr. the same Person as Buyer of the Goods deliv- ered to him, to sundries for the whole value of them, Cr. each particular sort for its respective value. Case 54. — When I sell goods of one sort for part goods of another sort and part ready money ; Rule. — Dr. the Goods received for their value. Dr. Cash for the sum received, Cr. the, goods sold by Sundries for their value. LtS. Cr. those rson who ther sorts ir its res- le whole ral other ed for its 2 whole ; is which 2 sort of Ir value, pspective sort of e deliv- severally Cr. the •al other ived for e whole Is deliv- er, each oods of Ilash for r value. Compendium of Merchants' Accounts. vx\ Case 55. — When I sell goods of one sort for part goods of another sort, part ready money, and part credit. Rule. — Dr. Sundries, viz., the Gooes received for their value, Cash for the sum received, the Seller for the rest ; Cr. the goods sold by sundries for their value. Case 56. — When I sell goods ot one sort for part goods ol another sort, part ready money, part trust, and part bills ; Rule. — Dr. Sundries, viz., the good received for their value, Cash for the sum received, the Seller for what he owes, and Bills Receivable ; Cr. the goods sold by sundries for their value. Case 57. — When I buy goods of one sort, for part goods of another sort, antl part ready money ; Rule. — Dr. the Goods bought to Sundries, Cr. the goods delivered for their value, Cr. Cash for the money paid. Case 58. — When I buy goods of one sort, for part goods of another sort, part ready money, and part credit or trust ; Rule. — Dr. the Goods bought to sundries, Cr. the Goods de- livered for their value, O. Cash for the money paid, and Cr. the Seller for the rest. Case 59. — When I buy Goods of one sort, for part goods of another sort, part ready money, part trust, and part bills receivable ; Rule. — Dr. the Goods bought to sundries, Cr. the goods delivered for their value, Cr. Cash for the money paid, Cr. the Seller for what is due to him, and Cr. Bills Receivable for the amount of bill. SHIPPING. Case 60. — When I buy a ship for ready money ; Rule. — Dr. the Ship, Cr. Cash. Note.— Tlic soino for a ship fitted out, in which 1 have a Hhare. Case 6i. — When 1 buy a ship for part ready money and part trust ; Rule. — Dr. the Ship to sundries, Cr. Cash for the money paid, Cr. the Seller for the rest. Note. — Thia is the wtui; as Caae 32, forcji^uinf;, wbiuh Kce. 1' ■ 'I I : 194 Compenditim of Merchants' Accounts. Case 62. — When I sell a Ship for ready money ; Rule. — Dr. Cash, Cr. the Ship. Case 63. — ^When I sell a ship for part ready money and part trust ; Rule. — Dr. Cash for the money received, Dr. the Buyer tor what remains due, Cr. the Ship by sundries for the whole. NoTB.— This is tho same as Case 37, foregoing, wliich see. I. t\i. FREIGHT. Case 64. — ^When I receive freight ; Rule. — Dr. Cash, Cr. the Ship. Case 65. — When I pay freight ; Rule. — Dr. the particular Voyage, Cr. Cash. LEGACY. Case 66. — When I receive a legacy in houses, lands, or goods; Rule. — Dr. those Houses, Lands, or Goods, Cr. Profit and Loss. BILLS. Case 67. — When I buy a bill of another for ready money, and receive discount ; Rule. — Dr. Bills Receivable, Cr. Cash for the sum paid, Cr. Profit and Loss for the discount. Case 68. — When I sell a bill for ready money and give discount ; Rule. — Dr. Cash Ibr the sum received, Dr. Profit and Loss for the discount, Cr. Bills Receivable by sundries for the whole sum. ^ n. FOREIGN. GOODS. Case i. — ^When goods are sent to sea for my own account, which were formerly entered in my books ; Compenditun of Merchants' Accotints. i95 Rule. — Dr. Voyage to , Consigned to Cr. the Goods. Case 2. — When goods are sent to sea for my own account, which were bought for present money, with all charges paid thereon ; Rule. — Dr. Voyage to , Consigned to , Cr. Cash. Case 3. — When goods are sent to sea for my own account, which were bought on trust ; Rule. — Dr. Voyage to , Consigned to , Cr. the Seller. Case 4, — When goods are sent to sea for my factor's account, which were formerly entered in my books ; Rule. — Dr. Factor's Account Current, Cr. the Goods. Case 5. — ^When goods are sent to sea for my factor's account, which were bought for present money, with all charges paid thereon ; Rule. — Dr. the Factor's Account, Cr, Cash. Case 6. — When goods are sent to sea for my factor's account, which were bought on trust ; Rule. — Dr. Factor's Account Current, Cr. the Seller. PREMIUM OF INSURANCE. Case 7. — When my goods are insured by another person, and I pay the premium presently ; Rule. — Dr. Voyage to , Consigned to , Cr. Cash. Case 8. — When my goods are insured by another person, and I do not pay the premium presently ; Rule. — Dr. Voyage to , Consigned to , Cr, the Insurer. Case 9. — ^When I pay the premium upon advice that my goods are safely arrived ; Rule. — Dr. the Insurer, Cr. Cash. Case 10. — ^When the goods of another person are insured by rae, and I receive the premium presently ; Rule. — Dr. Cash, Cr. Insurance. i ■■ rli tif ri c 196 Compendiiim of Merchants' Accounts. Case ii. — When the goods of another person are insured by me, and I do not receive the premium presently ; Rule. — Dr. the Person whose goods I have insured, Cr. Insurance. » • Case i 2. — When I receive the premium afterwards ; Rule. — Dr. Cash, Cr. the Payer. MONEY. Case 13. — When I receive a premium with advance for the insurance of goods formerly sent to sea ; /. e.y if I receive the pre- mium in dollars, and sell them for more, and receive the sterling immediately ; Rule. — Dr. Ca-h to Sundries, Cr. the person who paid the dollars for what he paid them at, Cr. Profit and Loss for the gain in the payment. Case 14. — When I sell them for gain, and receive the sterling some time afterwards ; Rule. — Dr. Cash for the gain only, Cr. Profit and Loss for the same sum. KoTE.- The other part of this cash was entered in my books before. Case 15. — When I sell the aforesaid dollars for more to my creditor ; Rule. — Dr. the Receiver to sundries, Cr. Cash for the value of the dollars as they were at first received, Cr. Profit and Loss for i\\\ gain in the payment. KoTE.— If my creditor had received the said dollars immediately, the Remitter must bo Or. instead of Cash. Case 16. — When I receive a premium with loss, for the in- surance of goods formerly sent to sea ; i.e.^ if I receive the premium in dollars, and sell them for less, and receive the sterling imme- diately ; Rule. — Dr. Cash for what I sold them at, Dr. Profit and Loss for the loss, Cr. the Payer by sundries for what I at first received them at. Case 17. — When I sell them for loss, and receive the sterling some time afterwards ; CompendiTim of Merchants' Acconnts. i^7 Rule. — Dr. Profit and Loss for the Loss only, Cr. Cash for the sam 2311111. NoTK.— The value of the dollars which I received them at waa entered in my books before. Case i8. — When I sell the aforesaid dollars for loss to my creditor ; Rule. — Dr. the Receiver for what I sold them at, Dr. Profit and Loss for my loss on the sale, Cr. Cash by sundries, for their first value. NoTB.— If my creditor has received the said dollarb immediately, the Remittor must bo made Cr. instead of Cash. il 1 i H >. 'I ! M ! ii| THE WHOLE COST OF INSURANCE. Case 19. — When goods of my own, that were insured, are cast away at sea ; Rule. — Dr. the Insurer, Cr. Voyage to . Case 20. — When goods of my own, that were not insured, are cast away at sea; Rule. — Dr. Profit and Loss, Cr. Voyage to . Case 21. — When the insurance is paid to me before I enter the circumstances in my books ; Rule. — Dr. Cash, Cr. Voyage to . Case 22. — When the insurance is paid to me after I have entered it ; Rule. — Dr. Cash, Cr. the Insurer. Case 23 . — When I hear of another man's goods insured by me, being cast awa)% and pay the adventurer immediately; Rule. — Dr. Insurance, Cr. the Adventurer, and Dr. the Adven- turer for the amount of Cash paid him. Case ^4. — When I hear of another man's goods insured by me, being cast away, and I do not pay the adventurer imme- diately ; Rule. — Dr. Insurance, Cr. the Adventurer. GOODS WHEREIN MY FACTOR IS CONCERNED FOIl MH Case 25. — When my factor buys goods for my account, or I send goods to him to be disposed of for me ; 1 1 1 .1 1 , '} 1 ' J.) I, I ■!■ ? I I 198 Compendium of Merchants' Acconnts. Rule. — Dr. such Goods in the hands of such factor, or else Voyage to ibr prime cost and charges, Cr. such Factor or Voyage. Case 26. — ^When those goods are sold ; Rule. — Dr. the Factor's Account Current, Cr. Voyage to , or else, Cr. Goods in the hands of such factor. NoTK.— An account current iB that by which an agent balances or makei eren with his employer. Case 27. — When abatements are m^de on the above said goods, through defects afterwards found ; Rule. — Dr. Profit and Loss, Cr. Factor's Account Current. NoTK. — The same for bad debts, charges of remittances, &e. Case 28. — When goods of mine, in the hands of one factor, are sent to another factor ; Rule. — Dr. Voyage to (the place of the latter or receiving factor), Cr. the former or sending Factor. Case 29. — When I receive goods in return from my factor ; Rule. — Dr. those Goods, Cr. the Factor's Account Current, for prime cost and charges, as per invoice, by double columns, viz., for the foreign money and the currency. - Case 30. — ^When I pay charges on the above goods ; Rule. — Dr. those Goods, Cr. Cash. MONEY BETWEEN ME AND MY FACTOR. Case 31. — When I draw bills of exchange upon my factor, and receive the contents presently ; Rule. — Dr. Cash, Cr. the Factor's Account Current Case 32. — When I draw bills of exchange upon my factor, and get thein accepted, but not received ; ^ Rule. — Dr. Bills Receivable, Cr. the Factor's Account Current. Case 33. — ^When the contents of such accepted bills are receiv- ed by me some time afterwards ; Rule. — Dr. Cash, Cr. Bills Receivable. Case 34.— When my factor draws bills of exchange upon me for goods, bought by him abroad, and I pay the contents pre- sently ; / Compendium of Merchants' Accounts. ^^^ Rule. — Dr. the Drawer, Cr. Cash. Case 35. — When I accept the bills, as above, but do not pay them presently ; lluLE. — Dr. the Drawer, Cr. Bills Payable. Case 36. — When I pay those accepted bills afterwards ; Rule.— Dr. Bills Payable, Cr. Cash. Case 37. — When I remit money to my factor for goods by him sent to me ; Rule. — Dr. such Factor, Cr. Cash. Case 38. — When bills of exchange are drawn by one of my factors on another ; Rule. — Dr. the Factor drawing, Cr. the Factor drawn on ; charging and discharging in such coin as the bills were received and paid in. Case 39. — When b'Us of exchange are drawn by one of my factors on another, and the money remitted to me, which I receive immediately ; Rule. — Dr. Cash, Cr. the factor drawing. Case 40. — When bills of exchange are uiawn by one of my factors on another, and I receive the contents at usance . Rule. — Dr. the Acceptor, Cr. Factor drawing. Case 41. — When I have money in my hands to negotiate with, and deliver it for bills of exchange ; Rule. — Dr. Account of exchanges, Cr. Cash. Case 42. — When I dispose of those bills for money ; Rule. — Dr. Cash, Cr. Account of Exchanges. Case 43. — When I pay bills of exchange in honor of the drawer or indorser ; RuLL. — Dr. such Drawer or Indorser to sundries, Cr. Cash for the principal and charges, Cr. Profit and Loss for the commission. . * OF FACTORAaE ACCOUNTS L DOMESTIC. Case i. — When I pay charges on goods received on commis- sion; t \ i I .1 I 1^! ! ! n 200 Compendium of Merchants' Acconnts. Rule.- -Dr. Goods for the account of , Cr. Cash. Case 2. — When I sell goods on commission lor ready money ; Rule. — Dr. Cash, Cr. Goods for the account of . Case 3. — \Vhen 1 sell goods on commission for trust ; Rule. — Dr. the Buyer, Cr. Goods for the account of . Case 4. — When I sell goods on commission, for part ready money, and part trust ; Rule. — Dr. the Buyer for what he owes, Dr. Cash for what is received, Cr. Goods for the account of by sundries. Case 5. — When I barter goods on commission for other goods ; Rule. — Dr. the Goods bought, Cr. Goods for the account of Case 6. — When I send goods of my own to my employer, with the charges paid on shipping them ; Rule. — Dr. Goods for the account of to sundries, or, Dr. my Employers Account Current to sundries, Cr. the Goods sent out, Cr. Cash for the charges. Case 7. — When I buy goods for ready money, and send them directly to my employer, with the charges paid on them ; Rule. — Dr. my Employer's Account Current, Cr. Cash for the principal and ^harges. Case 8. — When 1 buy goods upon trust, and send them directly to my employer, with the charges paid on thei. , Rule. — Dr. Goods for the account of to sundries, or, Dr. my Employer's Account Current to sundries, Cr. Seller for their value, Cr. Cash for the charges. Case 9. — When bills are drawn on me by my employer for goods sold, and are payable at usance ; Rule. — Dr. Employer's Account Current, or goods for the account of , Cr. Bills Payable. Case 10. — When I pay the said bill presently ; Rule. — Dr. the Employer's Account Current, or Goods for the account of , Cr. Cash. Non.— The same is to b« observed when mone7 is remitted by me to mjr employer befora tio draws on me. >ney ; Oompendixim of Merchants' Accounts. 201 Case ii. — When goods, on commission are all sold, and value handed to the employer, how must the account be closed ? ' Rule. — Dr. those Goods to sundries, Cr. Cash for payment, and also for the further charges on them, as porterage, cartage, &c., Cr. Profit and Loss for commission and warehouse-room. ready vhat is goods ; ount of er. with , or, Dr. lent out, id them for the [directly or. Dr. ^or their )yer for [for the for the ayer befora II. FOREIGN. Case i. — Goods in my possession sent to my factor by order of my employer ; Rule. — Dr. Voyage to , consigned to , for the ac- count of (my employer), to sundries, Cr. Goods for the account of (my employer), Cr. Cash for the charges. Case 2. — When those goods are insured, and I pay the pre- mium presently ; Rule. — Dr. Voyage to , consigned to , for the account of (my employer), Cr. Cash. Case 3. — When I do not pay the premium till afterwards j Rule. — Dr. Voyage to (as above), Cr. th : insurer. .. Case 4. — When I receive advice from my factor, that the goods sent to him from my employer are sold ; Rule. — Dr. such Factor for my employer's account, Cr. Voyage to , for the account of (my employer). Case 5. — When my factor informs me that he has made an abatement for defects, &c., found afterwards ; Rule. — Dr. Voyage to , for the account of (my employer), Cr. such Factor for the account of (my employer). Case 6. — When goods are returned to me from my factor, for goods sold by him for my employer ; Rule. — Dr. the Goods received for the account of my em- ployer, Cr. that Factor for the account of my employer. Case 7. — ^When I pay charges thereon ; Rule. — Dr. Goods received for the account of my employer, Cr. Cash. 202 Compendium of Merchants' Accounts. Case 8. — When goods returned from my factor are consigned directly from him to my employer ; Rule. — Dr. such Employer's Account Current, Cr. Factor for my employer's account. Case 9. — When commission is due to me from my employer, for goods sold by my factor ; " ' Rule. — Dr. Voyage to , for account of (my em- ployer), Cr. Profit and Loss. Case id. — ^When I make abatements afterwards, and for bad debts ; Rule. — Dr. Factor's Account Current, Cr. the Person to whom the abatement is made, or whose debt is lost. Case ii. — When I pay charges on remittances and postage of letters ; Rule. — Dr. Factor's Account Current, Cr. Cash or Charges of Merchandise. NOTB. When goods on commission are all sold, the produce clear of all charges is called the net proceeds, for which Dr. Goods for the account of , Cr. Factor's Account Current. III. COMPANY ACCOUNT. MYSELF KEEPING THE ACCOUNT, AND HAVING THE DISPOSAL OF THE GOODS. Case i. — When goods in company are bought by me for ready money ; Rule. — Dr. those Goods for the cost and charges (if there be any), Cr. Cash. Case 2. — When goods in ccapany are bought by me on trust; Rule. — Dr. those goods for the cost and charges (if there be any), Cr. the Seller. Case 3. — When goods in company are sold by me for ready money ; Rule. — Dr. Cash, Cr. Goods in Company. Case 4. — When goods in company are sold by me on trust ; Rule. — Dr. the Buyer, Cr. Goods in Company, Cr. his Account Current Compendiilm of Merchants' Accotints. 203 Case 5. — V.Tien goods in company are sold to myself ; Rule. — Dr. those Goods for proper account, Cr. Goods in Company, Case 6. — When goods in company are sold to my partner ; Rule. — Dr. his Account Current, Cr. Goods in Company, Cr. his Account Current. Case 7. — When goods in company are sold by me for part ready money and part trust ; Rule. — Cr. Cash for what is received. Dr. the Buyer for what remains due, Cr. Goods in Company by sundries for the full value. Case 8. — When goods of my own are brought into company ; Ruv — Dr. Goods in Company, Cr. Goods proper. Case 9. — When the whole is furnished by me ; Rule. — Dr. Goods in Company, Cr. the Seller if bought on trust, Cr. Cash if bought for present money. Case 10. — When goods of my partner are brought into company ; Rule. — Or. Goods in Company, Cr. Partner's Account. Case i i. — When the whole is furnished by my partner ; Rule. — Dr. Goods in Company, Cr. Partner's Account Cuiient for the whole. Case 12. — When goods in company are all sold; if there be gain; Rule. — Dr. the Goods in Company to sundries, Cr. Partner^s Account for his share, Cr. Profit and Loss for my share. Case 13. — ^When goods in company are all sold ; if there be loss ; « Rule. — Dr. Partner's Account for his share of the loss, Dr. Profit and Loss for my share, Cr. the Goods in Company by sundries. Case 14. — When goods in company are sent over sea to be sold, 1 paying the charges ; Rule. — Dr. Voyage to in Company to sundries for the whole charge, Cr. Goods in Company for their value, Cr. Cash for the charges. n\\ ■l<. [■' 1 i 204 Compendixun of Merchants' Accoxints. Case 15. — When I buy goods for company account v.-ith ready money, and ship them off, paying the charges of the shipping ; Rule. — Dr. Voyage in Company for the whole charge, Cr. Cash for the same sum. Case 16. — ^When I buy goods for company account on trust, and ship them off before they are entered in my Ledger, paying the charges of shipping ; Rule. — Dr. Voyage to in Company to sundries, for the whole charges, Cr. the Seller for the prime cost, Cr. Cash for the after-charges. Case 17. — When I receive goods from our factor for company account, in return for goods sent and sold, with charges paid by me at the receipt thereof ; Rule. — Dr. Goods received in Company to sundries, for their prime cost and charges, Cr. Factor at for company account, for the cost and chaigCo, as per invoice, Cr. Cash for the charges paid at their receipt. Case 18. — When goods art sent from my factor in one place, to our factor in another ; Rule. — Dr. Voyage to , consigned to our factor, Cr. my Factor at his Account Current. Case 19. — When goods are sent by our factor in one place to my factor in another place, in return for goods sold for comjt)any account ; Rule. — Dr. Voyage to , consigned to , my factor at , Cr. our Factor at Case 20. — When goods are sold by our factor as per his advice ; Rule. — Dr. Factor at — to in Company. Case 21. — When I receive advice that my factor has afterwards made some abatement ; Rule, — Dr. Voyage to , Cr. Factor at ■ his Account . Current. Case 22. — When I receive money of my partner for his share of goods formerly bought ; his Account Current, Cr. Voyage Compendium of Merchants' Accoiints. 205 Rule. — Dr. Cash, Cr. Partner's Account Current. Case 23.— When money is remitted to me by our Factor for goods sold ; Rule. — Dr. Cash, Cr. Factor at his Account Current. Case 24. — ^When money is remitted to me by our Factor foi goods sold, but payable at usance ; Rule. — Dr. Bills Receivable, Cr. Factor at his Account Current , Case 25. — When I pay money on sight of my partner's bill ; Rule. — Dr. Partner's Account Curreit, Cr. Cash. Case 26. — When I give to my creditor a bill on my partner, for his share of the goods in company ; Rule. — Dr. the Receiver of the Bill, 1. ^., my Creditor, Cr. Partner's Account Current MY PARTNER KEEPING THE ACCOUNT, AND HAVING THE DISPOSAL OF THE GOODS. Case i. — When I pay my share in money; Rule. — Dr. the Company, Cr. Cash. Case 2. — When I furnish my share in goods ; Rule. — Dr. the Company, Cr. the Goods. Case 3. — When I fui. ish both my own and my partner's share ; Rule. — Dr. the Company for my share, Dr. Partner's Account Current for his share, Cr. the Goods by sundries. Case 4. — When ray partner furnishes my share as well as his own ; Rule. — Dr. the Company, Cr. Partner's Account Current for my share only. Case 5. — When my partner sends me an account of the sale of goods in company ; Rule. — Dr. Partner's Account Current, Cr. the Company for my share of the net proceeds. Case 6. — If there be gain on the above sale j Rule. — Dr. the Company, Cr. Profit and Loss, i 206 Compenditim of Merchants' Accounts. Case 7. — If there be loss ; Rule. — Dr. Profit and Loss, Cr. the Company. Case 8. — When my partner draws on me for my share of goods in company, and I pay the same presently ; Rule. — Dr. Partner's Account Current, Cr. Cash. Case 9. — When my partner draws on me as above at usance , Rule. — Dr. Partner's Account Current, Cr. Bills Payable. The General Balance of the Whole [207 Ledger, in order to Transfer the same into New Books. Observe i. — All accounts are balanced either by Balance or by Profit and Loss, except Accounts in Company, which are bal- anced by the Goods in Partnership for my partner's gain, or to these Goods for his loss thereon. Observe 2. — When accounts with persons are made even by receipts or payments, those accounts stand balanced already. Observe 3. — When accounts remain unfinished : — Case i. — If it be of money remaining in hand ; Rule. — Dr. Account of Balance, Cr. Cash. Case 2. — If it be of persons who are debtors ; Rule. — Dr. Account of Balance, Cr. their Accounts. Case 3. — If it be of persons who are creditors ; Rule. — Dr. their Accounts, Cr. Balance. Case 4. — If it be of goods which are all sold, and there is gain ; Rule. — Dr. those Goods, Cr. Profit and Loss. Case 5. — If it be of goods which are all sold, and there is loss ; Rule. — Dr. Profit and Loss, Cr. those Goods. Case 6. — If it be of goods, part sold and part unsold ; Rule. — For what is sold Dr. and Cr. as above ; for what ic un- sold, Dr. Balance, Cr. the goods at prime cost. NoTB. — ITie same when all the goods remain unsold. Observe 4. — The accounts of Insurance, charges of Merchan disc, Interest, House expenses, &c., are all balanced by Profit and Loss. Observe 5. — The Accounts of Profit and Loss and Balance are balanced by Stock, they being made Drs. to or Crs. by Stock, as their particular balances direct. Observe 6. — The account of Stock is balanced by the several balances of Profit and Loss, and Balance being brought thereto. Obsekve 7. — The account of Balance in the old books will be the Inventory of the new ones. m I I ij li ' I ■( 11; ki 'H 1 # * ^ ;|l ■1 1 ll si ^v s^ 1 1 1 \ 1 1' 1 f i '; • 1 ' r 5 APPENDIX. P 1 ll ,5 i 210 APPENDIX. ARITHMETICAL RULES. EQUATION OF PAYMENTS— AVERAGES. Rule — (i.) Multiply each of the debts, except that which is earliest due, by the difference of the days, or time, between its date and that of each successive one, (2.) Divide the sum of these pro- ducts by the sum of the debts, and add the quotient thus obtained to the date of the first debt ; these days counted forward will give date of average note. EXAMPLE. A. B. makes the following purchases from C. D., @ 4 months, firom the undermentioned dates, viz., Jan. 3rd, $500 ; February 12th, $300, and March the 29th, $600 : — . ^ /Number of d»M firom J _ , <, nrin 40 Urd Jan. to ISth Peb.J - I2,000 Q - /Number of dayi from t - - r\rsr\ 05 V3rdJan.to»tliV... { — 5'»®°° The sum of I'he debts... $1400 The sum of the pro- ( ducts of the debts < and days ( 63,000 63000 -r- 1400 = 45 the quotient. Jan. 3rd.... 500 Feb. 1 2th . 300 X Mar. 29th . 600 X Add the 45 days thus lormed to 3rd January, the date of the first debt, 45 + 3 = 48 days, which, counted forward, will give 17th February, the date of Average note for $1400 ; of course the note will be due 4 months from this date, viz., the 17th and 20th June. APPENDIX. 211 RULES FOR REDUCING STERLING MONEY TO HALI- FAX AND DECIMAL CURRENCY AND VICE VERSA. ll ' -i FIR.ST.— TO REDUCE STERLING TO HALIFAX CURRENCY. Rule. — ^To the sterling add one-fifth of itself and one-twelfth of that fifth. SECOND— TO REDUCE HALIFAX CURRENCY TO DECIMAL CURRENCY. Rule. — (i.) Multiply the ;^s by 4, adding ti ; fives of the shillings as units of Dollars, if there be so many. (2.)* Multiply the remaining shillings (if any) by 20, and the pence by f for cents. t EXAMPLE L ^^500 10 o Stg. to Halifax Cy. Rule ist. \ 100 2 o ^ 8 6 10 ;^6o8 18 10 Halifax Cy. Reduce to $s. Rule 2nd, 4 $2435 76^ Decimal Cy. THIRD.— TO REDUCE STERLING TO DECIMAL CURRENCY DIRECT. Rule. — Multiply the ;^s by $4-86f, adding the aliquot parts of the ShiUings and Pence taken on the multiplier. EXAMPLE II. ;^5oo 10 o Stg. to Decimal Cy. direct 4.86f 3000 4000 2000 i.66f i.66| ios.=i 2.43I = [f of 500 = ^ of 4.86f $2435 7^1 Same as above. * The multiplication by 20, and by § should be performed mentally, as in the example. t I prefer the mode of operation Exemplified in the first Example, to the second, although it were only required to reduce the Stg. to Decimal Cy., and not to Halifax aa well. The work is much more intricate by the Beoond method, especially when the shillings and pence in the Stg. would iiecessiatc the taking of many aliquot parts. u i! ! ■■ Ii i 212 APPENDIX. FOURTH.— TO REDUCE DECIMAL CURRENCY TO HALIFAX CURRENCY AND STERLING. Rule. — (i.) Divide the Decimal Cy. by 4 for Halifax Cy. (2.) By proportion, to reduce the Halifax Cy. to Stg. EXAMPLES. $2435.76! Decimal Cy.-J-4* = ;^6oS 18 10 Halifax Cy. (2.) As 73 : 60 : : ;^6o8 18 10 Halifax Cy. to Stg. 3653 13 o 10 73)36536 10 o(;^5oo 10 oStg. 365- 36 20 730 73- o o FIFTH.— TO REDUCE DECIMAL CURRENCY TO STERLING DIRECT. Rule. — Divide the amount, Decimal Cy., by $4.86f EXAMPLE. $2435-761 Decimal Cy.-j-4.86f = ;^Soo 10 o sterling. Or thus : — 4.86|)$2435.76|-r$4.86| 3 3_ 1460) 7307-3o(;^SOo i© ©Stg, 7300- • 730 , 20 14600 1460. o o * In the division by 4 consider the units of the remaining dollars, if any, as fives of Shil- lings ; and the twentias in the cents, if any, as units of the Shillings, and add them together for the shillings of the answer, and Multiply the remaining cents, if any, by 8-5 for pence, lliis «p«raUon should also be performed mentally. APPENDIX. 213 SIMPLE INTEREST. Rule i. — To find the interest of a given sum for a year, at a given rate per cent, per annum. Multiply the principal by the rate, and divide the product by loo. EXAMPLE. Required the interest on $375, for i year, at 8 per cent, per annum. $375 X 8 -i- 100 = $30 r^, interest for one year. Rule 2. — To find the interest of a given principal for any num- ber of Months. Find the interest for a year by rule i, and take- aliquot parts for the months. EXAMPLE I Required the interest (for a greater time than a year), on $800, for 15 months, at 7 per cent, per annum. $800 X 7 — 100 ^ S6^W» interest for i year; find the ^ of this amount, and add it to it, for the additional 3 months ; therefore, $56 + 14 = $70^^, the interest for 15 months. EXAMPLE 2 Required the interest (for a less time than a year), on $500, for 9 months, at 7 per cent, per annum. $500 X 7 4- 100 = 35-^V\r> interest for i year ; the j^ of which will be the interest for 9 months ; therefore, $35 x ^ = $26.25, interest for 9 months. Rule 3. — ^To find the interest of a given sum for any number of days. Multiply the principal by twice the rate, and the product by the days, and divide the result by 73,000. EXAMPLE. Required the interest on $1000, for 40 days, at 6 per cent, per annum. $1000 X 12 X 40-5- 73,000 = $6.57f|, interest. 1 ! I ! EXCHANGE. (i.) To find the value of any sum — U. S. Currency in gold, (or Canadian Currency.) Rule. — Multiply the number of dollars of U. S. Currency by 100, and divide the product by the price of gold in greenbacks ; the quotient will be the number of dollars in gold, or (Canadian Cur- rency). 2U APPENDIX. Example. — When gold sells at 140, what is the value of $2iooy<\/V, U. S. Currency? $2100 X 100 -r 140 = $1500-1'^^, answer, in gold (or Canadian Cy.) (2.) To find the value of any sum — ^gold (or Canadian Cy.) in U. S. Cy. (or greenbacks), at any given rate of discount. Rule. — Multiply the number of dollars in gold (or Canadian Cy.) by 100, and divide the product by 100 less the discount. Example. — Find the value of $1200 gold (or Canadian Cy.) in U. S. Currency, discount on the latter ©25 percent. $1200.00 X 100 -f 75 = $1600.00, answer, in U. S. Currency. ON RULES TO DETERMINE THE VALUE OF GOODS HAND AT THE TIME OF A FIRE. RULE 1ST. When the advance on the prime cost is an aliquot part of $100, as 50 per cent. = ^, 75 per cent. = ^. To the denominator of the fraction, indicating the aliquot part, add the numerator ; thus, i + f = i;f + f = f, &c. And subtract from the total sales the amount expressed by the fraction, whose denominator has been thus increased, to determine the prime cost of the goods sold. This amount subtracted from the amount of the goods purchased will give the prime cost of the goods on hand at the time of the fire. EXAMPLE AT 12^ PER CENT. OR )4' A. B. purchases, at various times, goods amounting to $50,000, and his sales amount to $54,000, including advance : then 4 + ^=^ of $54,000 = $6,000, which subtract from $54,000 = $48,000, the prime cost of the goods sold ; which deduct from the amount purchased, $50,000 = $2,000, the amount of goods on hand at time of fire. RULE 2ND. When the per cent, advance is not an aliquot part of$icc; then as $100, plus the per cent advance is to $100 ; so is the amouat of goods sold to the prime cost. EXAMPLE AT 1 7 PER CENT. ADVANCE. Let the amount of goods purchased be $40,000, and the amount of sales $35,100: — then as $100+17 : $100: : $35,100; or, as $117 : $100 : : $35,100 : $30,000. Tl e fourth term, viz. $30,000 = the prime cost of goods sold ; subtract this amount from the $40,000 purchased, and we have $10,000, value of goods on hand at time of fire. '— Wl Af'PKNDIX. 215 INVOICE. Invoice of 300 barrels Beef, and 400 barrels Pork, Shipped by A. V. Delaporte, on board the barque " New Dominion," John Fairweather, master, for Liverpool, on account and risk of William Brown & Co., there. W.B. L. 100 barrels Mess Beef. &, i6-fii?ir $ 4800 7200 c. 00 AGO do. do Pork,® iSaC 00 CHARGES : ; Cartage. Wharfage, and Shipping 12000 20 300 369 00 00 Commission on $12000, @ 2^ percent .... Insurance (F.P.A.)* on $12320, @ 3 pr. ct... 00 60 12689 60 Errrors Excepted. A V. DELAPORTE. Toronto, ist June, 1868. The following are the usual Modes of Effecting Marine Insurance : — 1. *F.P.A. Means " Free From Particular Average," and the party so insuring, in case of loss or damage of cargo, shall receive amount of loss. ■ 2. P. A. Means " Particular Average," and signifies that the party insuring — insures for only a proportion of loss, say, 5, 10, or 20 per cent 3. G.A. Means " General Average," and signifies that all the parties' insurances, on the particular cargo, pay their proportion of the loss. > fi ; i fli Ji -.JUt/ 216 APPENDIX. FORM OF ACCOUNT CURRENT* ■■^. WITH MODE OF CALCULATING THE INTEREST TKFUECN AT — SAY SIX FER CENT. PER ANNUM. ., Dr. A. Jardine in Account Current with John Jones. Cr. 1868. Feb. 10 f> 25 June 20 Dec. 10 To Goods »> >» >» »» Interest (see below $ c. 1868. i 931 50 Mar. 24 1072 00 April 6 2076 67 Sept. 26 37 44 Dec. 10 4U7 61 By Goods ,, Cash.. „ Bill on Gary & Co ,, Balance ... . $ 832 I/38 c. 67 60 loooloo 54634 4II7 61 Dr. February loth $ 931 50 x 304 = 282176 00 „ 25th 1072 00 X 289 — 309808 00 June 20th 2076 6y x 173 = 359263 91 March 24th 832 67 x 261 - April 6th 1738 60 x 248 ::^ September 26th . . 1000 00 x 75 = Cn. 951247 91 723499 67 227748 24 $217326 87 431172 80 75000 00 723499 67 By former Rule for Interest, multiply 227748.24 by twice the rate, and divide by 73.000: 227748.24 X 12 4- 73,000 = $37.44 interest, as against Jardine. * An Account Current contains a statement of the mercantile transactions of one person with another, when immediate payments are not mado. It is usually written on two pages, marked Dr. aiid Cr. in the manner of % Ledger Account, the left hand page containing the imymentfl aade by the merchant who furnishes the Account, and the other what is paid to him. ''\ APPENDIX. :e'otij^s of bilIjS. PROMISSORY NOTE. 217 a c. 67 60 loo I 34 61 $1000.00 Toronto, yune 1st, 1868. Four months after date, /* promise to pay to yohn yones 6" Co., one thousand dollars, at the Royal Canadian Bank here, value received, yAMES yOHNSON. 'No. I. DRAFT. Ssoo.oo Toronto, yune ist, 1868. Sixty days after date, pay to my order at the Gore Bank, Hamilton, five hundred dollars, value received. yohn White, Esq., Gait. yNO. ROGERS. 'i\ 1 51 £350 Sterling. BILL OF EXCHANGE. Toronto, yune ist, 1868. Thirty diys after sight of this, first of Exchange, (second and third unpaid,) pay to the order of Pickford 6- Co., Lon- don, three hundred and fifty pounds sterling, value re:eived. CLARKSON ^ Co. To Messrs. Baring &> Co., London. *U a note is to bo signoi.^ ^y a firm or more than one person, write We Instead of L \ 'Vl t s i 218 APPENDIX. ABBREVIATIONS AND CHARACTERS USED IN THIS WORK. ABBREVIATIONS. A^t... .Account. Am't.. . . Amount. Am ... . Answer. Apr... . April. Ass'fd. , Assorted. Aug . . . . August. Bal ... . Balance. B.B. . . .Bill Book. Bbls . . . Barrels. B.P. .. .Bills Payable. B.H. . . Bills Receivable. Blk ... .Black. Bx moveables in the hands of one person belonging to another. Embargo, an arrest on ships or mer- chandise by public authority. Emporium, a principal place for the importation and sale of merchandise. Excise is an inland charge or imposi- tion on various commodities. Factorage, called also Commission, is an allowance to factors by those who employ them. th( ho ce al / APPENDIX. 221 Finances, a term generally applied to the public revenues. Firm, the mercantile appellation of a house engaged in commerce. First-rate Paper, bills drawn or ac- cepted by a good house, such as has always paid its bills regularly Mat, an article of merchandise is said to be flat when there are few buyers . Freight, the sum paid for transporting merchandise by sea, &c. Gazette, a paper published by Gov- ernment, containing, among other things, notices of tfie dissolution of partnerships, commissioners of bankruptcy, suspen- sion or continuance of bounties, embar- goes, &c. Government, " for your government," is an expression adopted from the French signifying, " in order to give you better information, and rules for acting by, in the purchase or sale of any merchan- dise.^' Guarantee, a person who undertakes that certain stipulations shall be fulfilled. Honor, to honor a draft is to accept it on presentation. Impost, a certain tax or duty levied on merchandise imported. Insolvent, a tradesman who has not a capital adequate to the payment of his debts is said to be insolvent. Instalments, payments of a debt in certain proportions, and at stipulated times. Insurance or Assurance is a contract of indemnity, by which one party en- gages, for a stipulated suiu, to insure another against a risk to which he is ex- posed. The party who takes upon him the risk, is called the Insurer or Under- writer; and the party protected by the insurance is called the Insured; the sum paid is called the Premium; and the mstrument containing the contract is called the Policy. Interest, a premium paid for the use or loan of money. To guard a person's interest is to protect his property, and watch over his concerns . Landivaiter, an officer belonging to the Custom-house, whose duty it is to take an account of goods imported. Letter of Advice, a letter giving notice of any transaction. Letter of Attorney, or power of Attor- ney, a writing which empowers one per- son therein named to act for another. Letter of Credit, a letter by which one person receives money or goods on the credit of another. Letter of License is a written permis- sion granted to a person under embar- rassment, allowing him to conduct his affairs for a certain time without mo- lestation. Letters of Marque, a power granted by the Lords of the Admiralty to ships fitted out by individuals to act against the common enemy. j License, a privilege from Government for carrying on a trade or business, on which a certain duty is laid. Lien, a claim or attachment on any property which a person has in his pos- session, for a debt due to him from the owner of the property. Lighterage, a charge for carrying goods to and from a ship in a lighter. Liquidation, is the winding up of a business, such as paying and receiving all debts, &c. Manifest, a list of a ship's cai^o, which paper must be signed by the mas- ter of the vessel before any of the goods can be landed. Maturity, in bills, is when they be- come due. Maximum, the highest price of any article, as fixed by some law or regula- tion. Minimum, the lowest price of any article, as fixed by some regulation. Nonclahn is where a creditor .leglects to make his claim within a proper time, in which case he cannot enforce his de- mand. Notary Public, is a person legally- empowered to attest deeds and other writings; also to note and protest bills, drafts, or notes, when refused or returned Order, a direction from one house to another to effect certain purchases, &c., upon limited or unlimited conditions. Pass in Conformity, or to state in con- formity, is to acknowledge that an ac- count transmitted is correct. Pierage, money paid for the support of an established pier. Primage, so much ^ Cent, generally allowed to the captain of a ship on the amount of freight. Prime Entry, the first or original entiy made at the Custom-house on VI: VMIIil 222 APPENDIX. goods imported or exported. Price Current, a list of the articles in the market, with the present prices annexed to each, and which is generally furnished every month. Procuration, the power of using the signature of a house on letters and bills. Quarantine, the time a ship suspected of infection is restricted from intercourse with the shore; also certain duties im- posed on ships. Quoted on board, means the price for which a merchant agrees to put goods on board, free of expenses of shipping to the buyer. Remittance, a sum of money sent either in bills of exchange or otherwise, from one house to another. Renewal of a Bill, is the cancelling a bill or promissory note due, and accept- ing another at a given date in lieu thereof. Salvage, a certain allowance due to those through whose instrumentality property is saved from the perils of the seas, enemies, &c. Solidity, the character which a house bears as to property. Solvent, a person in trade who is able to pay his debts. Tidewaiters, officers employed to see the loading and unloading of ships, in order to prevent contraband trade. Tonnage, ihe admeasurement of a ship by which she pays the tonnage duty; or it is her actual capacity for stowage, and is in that case not unfrequently called her burthen. Tonnage, an impost of so much ^ Ton on liquors imported or exported. Umpire, when two arbitrators cannot agree in settling a dispute, a third per- son is named, who is called an umpire, and whose decision is binding. Underwriters, persons who insure ships, cargoes, or other risks, which is performed by writing their names under a policy of insurance. Usance, time given foi payment of bills of exchange. Usury, * consists in taking more than five ^ Cent., which is call^ legal interest, for the loan of money, when the obligation t.-» repay is absolute. Value, to value, in a mercantile sense, is to draw a bill; the words, "value re- ceived," or " value in account," are al- ways mentioned in every bill of exchange Wharfage, money paid for the use oi" a wharf. • That is in England. In Canada six per Cent, is the nominal rate ; but the borrower and koder may, however, agree to any rr te tJiey please. Money under this condition may be said to be free in Canada. TESTIMONIALS IN FAVOR OF " THE DOMINION ACCOUNTANT.' PRIVATE TESTIMONIALS. From Thos. Woodside, Esa., Cashier Royal Canadian Bani, Toronto, ijih Nov. 1868. I am satisfied the Dominion Accountant will supply a want which has long been felt, viz: — A system of Book-keeping that can be easily understood by any one ignorant of the science or art. The examples given seem well adapted to the requirements of a learner. The book is well executed as to its typography, and is remarkably moderate in price. I have no doubt but its merits will command for it a large sale. From the Rev. John Jennings, D.D., Chairman of the Council of Public InstruC' tionfor Ontario, Toronto, j^th Nov., 1868. In looking through the Dominion Accountant I find 1 get knowledge; and if any one can be looked to as an authority and teacher, you stand among the very foremost. ■ From the Rev. Wm, Morley Punshon, M.A., President of the Wesleyan Conference, Toronto, 3rd Dec, j868. I have looked over the Dominion Accountant, and think it well calculated to serve the purpose of its publication. From the Rev. Wm. Gregg, M.A., Toronto, s6th Dec, 1868. I have looked over the Dominion Accountant, which appears well calculated, from its clearness and conciseness, for the purposes of a text book in Book-keeing. The questions, notes, and explanations, as well as the rules appended for interest and exchange, I consider particularly useful. From David Higgins, Esq., Secretary to the Edinburgh Life Assurance Company, Toronto, zgth August, 1870. I have great pleasure in stating that I consider your " Dominion Account- ant" THE BEST VkTORK ON BOOK-KEEPING I HAVE SEEN IN THE COURSE OF A LONG EXPERIENCE, I highly approve of the various " Sets of Books" shown in it, which exemplify how accounts may be kept, either simply or elaborately, ac- cording to the requirements of circumstances. I strongly recommend the work to both Teachers and Students. The former will, I am certain, on inspection, readily appreciate its value, and the latter, even if unable to secure the assistance of an instructor, can, by a careful study of its rules and examples, become ac- quainted with all the operations and details of Book-keeping, and fully qualify themselves for the duties of an Accountant. I add here that the Definitions and Arithmetical Rules contained in the Book, contribute greatly to its value. From Andrew Henderson, of the firm of Henderson, Wallace and Company, Torotito, jth Sept. , i8yo. I have carefully examined your "Dominion Accountant," and beg to say that, from an experience of thirty years in Practical Book-keeping, I can confi- dently state that your system of Book-keeping, as exemplified in the above- mentioned work, single and double entry, is better adapted as a Text Book, or Self Instnictor, than any system that ever came under my notice. The Arith- metical Rules in the Appendix are invaluable to Commercial Students. EZTSACT3 rSOU TEE OPQTIOITS 07 TB2 FBESS. .i t. From the Toronto Globe. •' The Dominion Accountant."— Those intending to enter Mercantile life will find this a most valuable instructor. The-chief excellence of the work is its simplicity and practicability. The thorough carefulness shown by the author to lead the student gradually from the easier to the more difficult descriptions of accounts, is sure to encourage the mc^. timid beginner. Bankers and mercantile men have given it recommendations as a treatise that surpasses any they have yet seen for its adaptation to the school and the counting-room. From the Toronto Leader, nth Nov., 1868. The work before us is m^^re progressive in its plan than any with which wc have yet met. It lays the foundation of a practical knowledge of Book-keeping. Wo recom^nend this volume to account.^nts, in whatever business they may be engaged ; they will find it very valuable as a book of reference, and it is so arrunged that at any point in their progress they can find an exact counterpart, and by turr ing to it may at once verify their work. From the G~4elJ>h Mercury. The treatise is a very able one on the subject, and if the Board of Education would authoris>;; its incroduction iaio the schools it would be fortunate for the pupils. The author has brought to the task of producing the Dominion Account- ant a large measure of ability. From the Hamilton Spectator, Nov. nth, 1868, "Book -keeping is not easily learned theoretically, but the volume goes as far as anv we have seen to supply the wants of practical experience. '1 he author has taken great pains to explain his system, and he has added a Compendium of valuable Mercantile information which cannot but prove useful. From the Ottawa Citizen, i6th Nov., 1868. The author, Mr. Wm. R. Orr, is a practical Accountant, and tea(!.tr of many years standing. He has succeeded in producing an admirable text Book The v/ork is more progi'essive than any we have seen ; it begins at the beginning, and proceeds by regular gradations, until it reaches the highest order and most intricate description of accounts. From the Canadian yournal 0/ Commetce, 20th Nov., 1868. The distinguished features of the plan of instruction is that it is progressive. We cannot speak too highly ol" the pains-ta' 'ng care and thopough mastery of the subject manifested in the production ox this work. From the Cobourg World, 20th Nov. , i868. We think the Dominion Accountant superior to any other work of the kind extant. It is calculated to take the lead among works in Book-keeping, and ""e *recomr;iend those in '.crested in the '^'udy to take a look through it. I - From the Ncwmurket Era, 21st Nov., 1868. In the Dominion Accoun;..nt, we consider the author has succeeded in pro- ducing a Text Book worthy of an introduction into all public and private Schools. School Teachers should procure tli^e work at the earliest possible moment. It IS the most progressive and comprehensive work o>i the subject wb HAVE ever seen. ;S88- tercantile life le work is its the author to escriptions of nd mercantile they have yet with which w« Book-keeping- s they may be i, and it is so ct counterpart. ,rd of Education brtunate for the ninion Account- >lume goes as far ice. 'i he author Compendium of t, and teacLcf of ADMIRABLE TEXT • it begins at the s'the highest order K,iS6S. lat it is progressive. lOPOUGH MASTERY ler work of the kinO> ok-keeping, and '-e igh it. <8. ^as succeeded in p*o- : and private Schools, jossible moment, ir XrT THE SUBJECT WB