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Tous les autres exemplaires origiiiaux sont film6s en commenpant par la premidre page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernidre page qui comporte une telle empreinte. Un des symboles suivants apparaTtra sur la dernidre image de cheque microfiche, selon Ie cas: Ie symbole — »>signifie "A SUIVRE ", Ie symbole V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diffdrents. Lorsque ie document est trop grand pour dtre reproduit en un seul clichd, il est film6 d partir de I'angle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant Ie nombre d'images n6cessaire. Les diagrammes suivants iilustrent la mdthode. 32X 1 2 3 4 5 6 SAINT JOHN BUSINESS COLLEGE. IN this College the student' does jast such work as would be required of him should 1 he enter a Meechant's or Accountant's Office, along with such addUional training as is necessary to fit him for doing that work intelligently and nell. ^ A Solid and Practical Business Education i« the object aimed at, and the Course of Study embrace, such subjects as are necessary for effecting that object. SPECIALTIES : BOOK-KEEPING, ARITHMETIC, PENMANSHIP, BUSINESS CUSTOMS, BUSINESS CORRESPONDENCE, BANKING, Commercial Law, Telegraphy, SHORT-HAND. TYPE-WRITING. Time of Enterino.-As there are no vacations, students can enter at any time. Qx.A.mcxTlo.so. ENT.KX«..-OnlyaknowledgeoftheordinaryEnghshbranches is required on ei^tering. Ther^^re no examinaUons at time of entenng. our graduates are to be found throughout Canada and the United States and are living demonstration, of the f.ct that the Maritime Provinces can provide bo h the MatLai. and the TKAiK^a for competing successfully with any other country or ^™*'(^^AB8,«ivingf«ll paiticukrs^speeting Tbbms, GoiTESROF STrDY>.. tnaHed to any address. -♦ -' ♦ ' S. KERR, Principal. 1'' Page 8. An8W(fer to last Ex. on page 7, for "$1,057..87" read "$157.87." " 36. April 28. Insert : Received intelligence of total loss of brfg " Canada," iininsnred. Also, for " Net Loss $1,381.63" read " $7,381.53." "j 45. May 8. Error of $100 in balancing Cash Book, and consequently an error of same amount in Net Gain for the Set. "' 56. July 13. lu remarks: for " D. B." read " B. B." " 58, Aug. 24. Add to John Morton's sales 50 yds. Silk @ $2. " 71, For " Cash paid $15,573.97 " read " $21,789.63.^' «' 72. Jan. 8. For note "$3,871.00" read "$3,871.30." •' 106. For Am. Ex. 3, read " F $10 To E$2 (} $8." '^. ^ttu/mgumttrnm inm^m iMmiiimmiiiig^^ mLataamim I ] CANADA NATIONAL LIBRARY BIBLIOTHEQUE NATIONALE S( mi 7 / C ■7^.^-Z^ KERE'S BOOK-KEEPING: An Elementary Ti-eatise, DESIGNED AS A TEXT BOOK SCHOOLS, ACADEMIES, AND BUSINESS COLLEGES; i' FOR USB IN THE COUNTING BOOM; AND FOR PRIVATE STUDY, BY S. KERR, Prineipal of the Saint John Busineat Cbliege. I 8AINT JOHN, N. B. J. & A. McMillan, 98 and 100 Pkince William Steeet 1884. lii dm Entered according to the Act of Parliament of Canada, in the Year 1884, By S. RERR, In the Office of the Minister of Agriculture. ^Hp 1 1 ^K-1 • too set PKEFACE. In the Author's intercourse with teachers, students, and business men, he has frequently been asked the question : " Where can I get a good elementary work on Book-Keeping ? " When the inquiries were for advanced works, many valuable ones could be nnTned which are mines of information ; but the impart- ing of elementary instruciiua has, apparently, been either avoided or imperfectly perfoi'med. The present work is an attempt to supply, to some extent, this acknowledged want . and although the subject in confessedly a difficult one to teach theoretically, and the author has, in his desire to produce a book which could be placed before the public at the smallest possible price, been obliged to condense much which he would have desired to explain more fully, acd to omit altogether much of importance, yet he trusts he has been in some degref? success- ful. At all events, the book is the result of honest work, and a desire to simplify the study and make it interesting. The principal faults in the text-books in common use appear to be — I. Want of progressiveness ; II. Want of material suitable for class exercise ; I III. The student has too great facilities for copying ; IV. He is given numerous rules and directions as to what he is to do in specific cases, instead of being taught to rely on his own judgment and his knowledge of principles. An attempt has been made to remedy Fault I. by giving (1) the simple exercises contained in the Introduction, and more difficult ones, at intervals, throughout the work ; (2) by making the first " Set " as simple as possible, both as regards the kind of transactions and the books employed, and by gradually introducing other books and more difficult transactioiis in succeeding sets, gradually progressing from the simple to the more difficult, until the use of the several auxiliary books is shown, and in the last sets numerous transactions are given in Shipments, Consignments, Discounting, keeping accounts as Managing Owner of Ships, Administrator of Estates, &c. Fault II. is remedied by Sets II. to VIII., intended especially for Class and Blackboard use; and by the exercises in Ledger Accounts, Balance Sheets, Commercial Problems, &c. Fault III. The transactions for all the sets are given in narrative form, but the writing of these in the necessary books is shown in only two sets — Set I. Single Entry, and Set I. Double Entry. The remaining sets the student must work for himself, and test his work by the results given at the end of the respective sets. The portions printed in small type are the directions to the student. These (m) IV Preface. have been given rs often as was thought reasonably necessary, and decrease in frequency as the work progresses. Fault IV^. The student has been taught to determine his debits and credits by the simple test of cost and proceeds ; and to classify, not according to the name the account may bear, but by its quality and the purpose for which it was kept. It will be observed that Double Entry is taken up bef(. Biugle Entry. This is the method that has'always been pursued by the author, for the reason that beginners can learn Double Entry just as readily as Single Entry, and a knowl- edge of the former necessarily includes an acquaintance with the latter. The student, however, who wishes to learn Single Entry only, can take it up imme- diately after doing the exercises in the Introduction. Any of the Double Entry Sets can be worked by Single Entry, and ince versa. The Review Questions will, it is believed, prove of such a kind as greatly to aid both teacher and student. ' The Chapter on Law and Customs reppc^ting Negotiable Paper will, it is hoped, be found valuable. Commercial Forms are also shown and explained here. The Commercial Calculations and Problems will be fully appreciated by practical accountants. The author regrets that the space to which he has necessarily been limited has p/evented his giving more examples of improved forms of books, and of the methods of conducting joint shipments and consignments. These and othar important matters may form part of a future treatise, should the present venture prove successful. ase la 3redit8 name ept. This D that cnowl- The imme- Entry itly to , it is I here. ed by imited of the oth|r jnture TABLE OF CONTENTS. PWWAOK, III. COMTBNTS V. IKDKX, VII. ABBBKVIATIOMB and SIMMS, VI. COMMBRCIAL WOBDS AND PhBABKS, 1 Introduotlon,...; 8 Theory of Debtor and Creditor explained, 8 Ledger Forms explained 4 Footing and Closing explained, 6 Use of Red Ink Examnlea for Exeroiso, S Questions for Review, 8 Answers to Exercises, 8 Double Kntry, .* 9 Equality of Debits and Credits, 9 Rule for Debiting and Crediting 9 Journal Form of Entry, 9 Business Transaotions analysed, 10 Exercises in Journalizing, '. 18 Set 1. Use of Day Book, Journal and Lbdoeb, 14 Instructions for Posting the Ledger, 14 The Trial Balance 16 Correction of Errors, 15 t Classlilcation of Accounts 16 Closing the Ledger, 16 Day Book 18 m Journal, 21 Ledger, 24 Balance Sheet (Form I.) 27 Balance Sheet (Form IL), 29 Exercises in Closl ng Loss and (}aln Accounts, SO Quesiionsfor Review 81 Answers to Ezerolsos, 82 Sets for Praotloe. Set II. Gaining Business 34 Set III. Losing Business, 34 Set IV. Commencing without Capital,— clos- ing with Gain, „ 84 SetV. Gaining Business, 35 Set VI. Gaining Business, 35 Set VII. Losing Business,— closing Insolvent, 36 Set VIII. Partnership— one Partner solvent, the other Insolvent 86 Single JSntry....... 38 Explanatory Remarks, 88 Set IX. Transactions, , 89 Day Book, 42 Cash Book............. ., , 45 Ledger, 46 Questions for Review 48 Set jK« Transactions, 49 Set X. — OonHnu«d. Instructions for Writing Up, M Bank Book 6? Balance Sheet, 08 Questions for Review, 08 Deposit Slip 04 Check Book 00 8«tXI. Transactions, 08 Instructions for Writing Up, 09 Cash Book, 60 Bill Book, 60 Balance Sheet, 62 Questions for Rovlew, 68 SetXXI. Double Entry, 64 Instructions, 64 Transactions, 64 Trial Balance, 68 Cash Book 70 SetXIII. (Tk-stSet), 72 Transactions 72 Trial Balance, 76 Abbreviated Forms. Instructions for Writing Up 77 Form I. Journal Day Book, 78 Cash Book 80 Form II. Columnar Journal 82 Negotiable Paper 86 Classes, 86 Elements, 86 Presentation for Acceptance, 88 Indorsements 8» • Innocent Holder, 90 Days of Grace, 91 Demand, 91 Lost Bill or Note, 02 Payment, 92 Non-Payment, 92 Accommodation Paper 98 Usual Defenses, 98 Presumptions of Law, 98 Foreign Bills of Exchange, 98 Oonunerolal Caloolatlons,... 101 Profit and Loss, 101 Discount of Bills and Invoices, JOl Cancellation appHed to Interest, , 101 Partial Payments, 108 Sterling Exehange, 104 Adiustmeut of Interest and Balance due Partners „ 100 Miscellaneous Examples, 107 Table of Foreign Money, 108 Time Table, 109 (V) ABBREYIATION8 AND SIGNS. ^ or Aoot Account. Aoo Accepted. Amt Amount. Agt Agent. Art.: Article. B. or Bk Bank. Bal Balance. Bbl. or bbl fiar.-el. Bgr» Bags. Bdl» Bundles. B, B Bill Book. B/L....: Bill of Lading. Bot Bought. B. Pay Bills Payable. B. R Bills Receivable. Bush Bushel. C. B.. Cash Book. Cbk. orCk Check. Co Compauy. C. O. D Collect on delivery. Corn Commission. Oonst Consignment. Cr Creditor. Cwt. Hundred weight. C/o Care of. D. B Day Book. Bft Draft. Bis Discounted. Do (Ditto) the same. Do* Dozen. Dr X>ebtor. Ds Di^s. ea Each. E. Ill Errors Excepted. IS. & O. IS Errors and Ouiissions Excepted. Ex ^.\am|)le. Bicoh Exchange. Exp Expense. &v Favor. F. B. Exob Foreign Bill of Exchange. F. o. b Free on board. For'd Forward. Frt Freight. ft Foot. Gal Gallon. Gr Grain or gross. i«' hhd Hogshead. Ht Half. Inv.... Invoice. I. B Invoice Boot. 1. e That is. Ins Insurance. Inst Instant. Int Interest. Itov Invoice. Inventory, I. O. U I owe you. Jr Journal. 1S>8 Pounds. I-edg Ledger. Mo Month. lu/a uonths after date. Mdse Merchandise. Ml? Manuscript. Memo Memorandum. N/A New Account. N. B ; Take Notice. No , Number. N. G Net Gain. N. C Net Capital. M. li Net Loss. N. P Net Proceeds. Oz. or oa Ounce. p Page. pp Pages. Pay't Payment. P'd Paid. Per.. By the. Pr Pair. Prem. Premium. prox Proximo— Next Month. P. €. B Petty Cash Book. P. O. O Post Office Money Order. Qr. orqr Quarter. Qis. or qts Quarts. Becd ..Received. S. B .....Sales Book. Shpt. ; Sbipn^ent. St. Dft , Sight Draft. Stkf Sterling. Sund Sundries. ult Ultimo— Last Month. Via By the way of. w Dollar. *■ Pound. % Percent. 4t •• Number. @ . . At (VI) SIGNS. / Cents. 1'.. r.. 1'.. ..Check mark. ..One and one-fourth. ..One and oue-half. ..One and three-fourths. U.I ij ■ji^iiuii,!!! mil ,11111 ip^p^mpn^^pfi^HiimnpppiippviinHi ■■^""•^iMPiiPIPIIfllRiWi INDEX. AbbrevlatlonH vi. Aooeptanoe, defined gy Presentation for, 88 Conditlunal, 89 Aooepting, nipra protett, 89 Acceptor, 87 Acoommodation Paper, 93 Account Current, defined 1 Form of, 100 Form of, with Interest, lOl Account Sales, defined, 1 Form of, 99 Administrator, keeping accounts aa, 72 Altering Kntrle^, 15 ifi Analysts of Business Transactions, 10 Averagre Gain or I^ffee @ 40c. ; 6 lbs. Tea @ 60c. ; 10th. Bought 1 bbl. Apples, $3.50 ; 20th. Sold 1 lb. Starch, 16c. ; 2 Ybn. Raisins @ 20c. ; 3 Rm. Cur- rants @ 12c. ; 25th. Sold 10 lbs. G. Sugar @ He, and bought 5 bushels Potatoes @ 30o. John Amvb. Apr. 8. Sold him 1 pair Boots, $4.25 ; 2 pairs Shoes @ $1.76 ; 10th. Sold him 1 Hat, $2; 1 Umbrella, $2.15; 12th. Bought of him 7 yds. Tweed @ $1.40, and sold him 1 pair Slippers, $1.10 ; 2 pairs Bubbers @ 65c. ; 10th. Beceived from him Cash on acct., $6. MATfHKW CJoNROY. Feb. 12. Bought of him 2^ bushels Qover Seed @ $4.60; J ft). Beet Seed @ $1.50; 5 bushels Wheat @ 95c.; 10 bushels Oats @ 4ec. ; 15tb. Sold him 1 Plow, $12; 18th. Sold him 1 set Harness, $25; 20th. Beceived Cash, $15; 25th. Bought of him 1 Cow, $16; 20 bushels Wheat @, 90c.; 28th. Sold him 2 Shoveb @ $1.10; 3 Hoes @ 50c.; 2 Forks @ 60c. ; 30th. He endorsed to you J. A. Finn's note, $10, and you sold him 1 Singer Sewing Machine, $40. Required the balance of each of the personal accounts following : Aug. 1. Borrowed of John Smith, Cash, $20 ; 2nd. Sold Henry Adams, 2 h)a\a. of Flour @ $6 ; 3rd. Bought of John Rankin 10 bushels of Potatoes @ 40c. ; 4th. Sold John Smith 1 bbl. of Flour, $6.25 ; 5th. Sold Adam Powers 1 pair Boots, S5 ; 6th. Received from Henry Adams, Cash, $10 ; 7th. Loaned Matthew Jones, Cash, $6 ; 8th. Sold Adam Powers 1 Cow, $30 ; 9th. Bought of John Smith 20 bushels of wheat @ 76c. ; 10th. Received from Adam Powers W. H. Dick's note, $26, and transferred it to John Smith on account ; 11th. Gave John Rankin an order on Adam Powers for $7.50; 12th. Bought of Matthew Jones 12 lbs. Butter @ 26c.; 13th. Loa ^d Henry Adams $12.50; 14th. Bought of J. Rankin 14 yards of Tweed @ $1.50; 15th. Sold M. Jones 20 bushels of Oats @ 50c., and received his 6rder on J. Rankin for $8, which I gave Rankin on account. BILLS RECEIVABLE. This is the name of the account under which you keep a record of all the notes, bills and other written obligations of which you are to receive payment. When these bills are received, or cost value, they are entered on the Dr. side of this account ; and when they are parted with, or produce value, they are entered on the Cr. side, in either case for their face value. The difference between the two sides of the account at any time will show the amount of bills on hand. Ex. 1. — May 1. Sold John Smith Mdse, $500, and rece'd his note @ 3 mos. in pay't ; 2nd. Loaned Henry Adams on his 30 days note. Cash, $200 ; 8rd. Dis- counted J. Smith's note, $500, at C. Bank ; 4th. Rec'd from J. King his note @ 2 mos., in settlement of his acct., $110.16 ; 5th. Transferred to Adam McKay on acct. Henry Adams' note, $200. Bequired, the amount of bills on hand. Ex. 2. — Aug. 1. Have on hand the following notes : William Smith's $500, S. Adam's $J,000, and James Anderson's $800; 2nd. Transferred William Smith's note to James Doherty ; 3rd. Sold Henry Boyd on his note Mdse. amounting to $300; 4th. Reed, of James Bigelow his note in settlement of his acct., $204.50 ; 5th. Reed. Cash in payt. of James Anderson's note ; 6th. Discounted S. Adam's note at the Bank of B. N. A. ; 7th. Sold John Smith Mdse. and reed, in payt. his m ^iW»PI»PPHW t^t^^m^m^imiimmmmmmmmmmmmfK mmm iNTRODUCrriON. 7 « one-mo. draft on John Paywell, accepted, for $540 ; 8th. Gave Amos Strong, on acct., Hy. Boyd's note, $300; 9th. Discounted for Walter White, Charles Webster's note in favor of White, $670. Required, the amount of bills on hand. BILLS PAYABLE. This is the title of the account under which you keep a record of all your written promises to pay. When these bills (promises) are issued, or produce value, they are entered on the Cr. side of this acct., and when they are redeemed, or cost value, they are entered on the Dr. side. The difference between the two sides at any time will show the amount of your outstanding obligations. Ex. 1. — Feb. 1st. Bot. of R. Kaye, Mdse., $200, gave in payt. note @ 1 mo. ; 2nd. Borrowed of 8. Black, Cash, $300, on note at 3 mos., with interest at 6 % ; 3rd. Prepaid note $200 due R. Kaye, discount allowed for unexpired time $1.50; 4th. Gave N. Otis note, $40.75 in settlement of account. Required, notes outstanding. Ex. 2. — May 1st. You owe the following notes : One favor of Caleb Smith $700, one favor H. Smith 81,200; 2nd. Bot. of H. McKinley on your note, Mdse., $300; 3rd. Accepted S. Adams' 2 mo's draft, favor of A. J. Claghorn, $540 ; 4th. Sold Mdse. to John Paywell and rec'd in pay't your own note, favor of Caleb Smith ; 5th. Gave Andrew Coggin your note in settlement of acct., $225.14 J 6th. Paid note favor H. Smith ; 7th. Discounted for H. McKinley, your note in his favor ; 8th. Accepted Peter White's draft on us, favor John Brown, $236.17. Required, bills outstanding. CASH. This account i#kept to how all the Cash received and paid, ai the balance on hand, at any time. All the receipts are placed on the Dr. side of the account, and all payments on the Cr. side. The difference between the two sides of the account, at any time, must show the cash on hand. Aug. Ist. You have on hand, Cash, $1,000; 2nd. Rec'd for Mdse., $500; 3id. Paid sundry expenses, $125; 4th. Paid for Mdse., $400 ; 5th. Rec'd from Adam Smith, on acct, $50.25; 6th. Paid your note, favor of H. A. Bowman, $227.36; 7th. Found $10; 8th. Paid clerks, $20; 9th. Loaned Thos. Jack $100; 10th. Lost $5; 11th. Borrowed of Peter Andrews, $200; 12th. Rec'd pay't of Hy. Jones' note, $275 ; 13th. Paid rent, $100 ; 14th. Borrowed of H. R. Murray, $50; loth ; Paid M. J. Larkiu, on acc't, $150 ; 16th. Paid note, favor of H. McLean, $800. Required, Cash on hand. his QUESTIONS FOK REVIEW. Art. 1. What Is a butineu transactton? 2. What is Book-Keep!ng7 8. What is an Account? 4. Give the role for debiting. How can you proTe that Dr. Is synonymous with coat? 5. Give the rule for crediting. Give reason for rule. 6. How many sides baa erery account 7 Which is the Dr. side? Which the Cr. side? What does the Dr. Bide represent? What does the Cr. side repre- sent ? What is a " skeleton ledger ' form ? What a " ftill ledger" form? What is the most import- ant feature of either 7 7. How do you "balance" an account? What are footing lines? aosing lines? When would you add "per aoct. rend." to a balance? How would you rule an account when one side is longer than the other? Use of red ink? What are double lines? Abt. 8. Answers to Exercises. John Day Dr. $3 80 Jonas Powers Dr. 5 60 Amos Bell, Cr. 22 00 J. E. Smithera, Cr. 5 80 a E.White, <. Dr. 8 00 1 H. Grant A Co., Cr. IB 25 Chas. Cole, Cr. 19 60 Adam Beade, Dr. B M H. Smith, Dr. 1 22 .Tohn Ames, Cr. 60 M. Conroy, Dr. 2 27 John Smith Cr. 8 75 Hy. Adams Dr. 14 50 J. Rankine, Cr. 9 60 A. Powers, Dr. 2 60 M. Jones, Dr. 8 88 B. Rec., Ex. 1 Dr. 110 15 " 2 Dr. 1,414 60 B. Pay,, Ex. 1, Cr. 840 76 " 2 Cr. 1,001 81 Cash, Dr. 1,067 89 What is shown on Dr. sid#of B. Beo.acct.7 On Cr. side? Which side, if either, will be greater? Why? Whit will the bal., if any, represent? What ia the object of the B. Pay. acot.? Which side, if either, will be greater? Why 7 What will the bal. represent? For what value are bills always entered 7 What is shown in the Cash acct. ? Can the Cr. side ever be the greater? (8) iiM,III.>MIHJiiH»lpillJHJ^Jiil|ii.H». M > IJ l.l|,|lif i.mp|^n|ppp»>lll|lB^(W mmirwmmf^'mri Double Entry Book-Keeping. Art. 9. As a business transaction is an exchange of values, it is evident that to make a complete record of any transaction at least ttoo entries will be required : one, the debit entry, showing (Art. 4) the value received, or what has cmt value; the other the credit entry, showing (Art. 6) the value given, or what \iM produced value. 10* Borne transactions give rise to One debit and one credit ; some to One debit and two or more credits ; some to TSw or more debits and one credit ; some to Tijoo or more debits and two or more credits ; but, in any case the mm of the debit values must equal the mm of the credit values, 11, This principle of the equilibrium of accounts is the essential feature of Double Entry Book-Keeping, and is, as you will presently see, the one which enables the accountant to prove the correctness of his work, or ascertain the existence of errors. Hence, the definition given by some authors : Double Entry is an Equality of Debm and OrediU. 18. Double Entry takes cognizance of aU the results of every exchange of values. By the Single Entry method (Art. 41) such a record only of transactions is usually kept as will show one's Dr. or Cr. relation to persona. By the Double Entry method you keep accounts not only with persons but with things — account* showing not only the nature and value of aU your Assets and Liabilities, but also- accounts showing the amounts and sources of all your Losses and Gains. 13. The* principle of debiting and crediting has already been explained (Arts. 4 and 5), and may be briefly expressed thus : — Debit what costs value ; Credit what produces value. Thus, if you buy of B. Brown goods worth 8100, for which you pay Cash, your entry will be : — Mdse., 8100 To Cash, $100 14. The above is what is called a Journal form of entry, and means that Mdse. is Dr. (cost Cash 6100), and Cash is Cr. (produced Mdse. 8100). It is a concise form of indicating debits and credits, and is just as intelligible to an accountant as if written out in full. In such forms the word " To " separates the debits from the credits, and performs the same office as the heavy vertical line (Art. 6) in the Ledger. All before " To " is Dr. ; all after " To " Cr. 15. As illustrations of the above principle, we will now examine the following transactions, placing opposite each, in Journal form, the Debits and Credits.arising therefrom. (9) Mai 10 Double Entry Book-keeping. TlUHSACTIOK. JOVRKAL EntBY. If H. Adama bujs of you |200 worth of MdM. OQ taxi. H. AdaoM, 1200 00 To Mdw., CM bu oAuied . nd In Vt. ; Ml indebtedneM, and la Cr. 9200 00 Aduu* bu OAUMd Tou to part with Mdae., or hu oM you v9tut,tMA In Vt. ; MdM. haa produced you vaiua, in Adama' If you buy of W. Smith Mdse. on acct, worth ISOO, 9800 00 Mdse., To W. Smith, 9800 00 Mdae. haa coat yon value, In your lnd«bt«dneia to Smith ; Smith haa produced you value by fUmlablng you with the gooda. If you aell Mdse. for Canh, 9100, Cash, To Mdse., 9100 00 9100 00 Caah ooata you value in Mdae. ; Mdae. producea you valne in Caah. If you sell John Gray, on his note, Mdse., $260, ^ Bills Receivable, 9260 00 To Mdse., 9260 00 The Note ooata value ; tlie Mdae. producea value. If you buy Mdse., 9160, on your note, Mdse., To Bills Payable, $160 00 9160 00 Mdse. coKta value In your Indebtedneaa on the Note; the Note producea value in Mdae. If you buy House and Lot $4,000, paying Cash $2,500 and a note you hold of John Smith's, $1,500, Beal Estate, To Cash, Bills Receivable, $4,000 00 $2,600 00 1,500 00 Beal Estate costa value In Caah and Note given ; Cash and B. R. produce value. If you receive Cash, $200, for rent of house, Cash, To Real Estate, 9200 00 $200 00 Caah costs value, yon having given for It the use of the house ; Real Estate produces value in Cash. If you pav $50 for the use of money borrowed, Interest, To Cash, $60 00 $60 00 Interest (i. e. the use of the money) costs you value ; Cash produces you the use of the money. If you buy the Brig Alice, $5,000, giving Cash $2,000, your note $1,200, and your farm $1,800, Brig Alke, To Cash, Bills Payable, Real Estate, $5,000 00 $2,000 00 1,200 m- 1,800 00 Brig Alice costs the things given ; Cash B. P. and R. E. produce the Brig. If you pay Cash, $200, for clerk's services. Expense, To Cash, $200 00 $200 00 Clerk's services cost value for which Dr. Exp. Cash pro- duced value id services rendered. If you pay Cash, $500, for disbursements of Brig Alice, If you receive Cash, $800, for freight of Brig Alice, $500 00 Brig Alice, To Caph, $500 00 Brig Alice costs value. Cash produces value in ftimlshing Brig with supplies. Cash, $800 00 To Brig Alice, $800 00 Cash coats value — use of Brig. Brig produces Cash. — Ill ■ i.i,i,wmimmmfi^mmiimm^^mirT<'t9li^^^m '•'^mifimm^i'mmiiimmmiimmftwmmimim wmmm Double Entry Book-.^e£pimo. U I'BAMBACrnOK. JovBMAL Entry. If you t^y W. Adams $50 Cktfb, which jou owe him, W. AdaDis, 150 00 To Cftik, WO 00 AAiuot OMta yalu« Ig CHh ; Cash prodooM valtM lijr >:«- liaving )rou of lUbUtty to Adamt. If you sell Brig Alice for $6,000, receiv- ing Cash, nooO: Mdse., $1,800; 10 ahan-ea of Bank of N. B. Stock @ $140, and purchafter's note for bal., Cash, $2,000 00 Mdse., 1,800 00 Bank of N. B., 1,400 00 B. Rec., 800 00 To Brig Aliee, $6,000 00 Each thing reed, hu oont Tslua; Bi tg Alice hu produced value to tblngt received. If H. White owes vou $100, and you make a draft on him for the amount, and sell it at par for Cash, Cash, $100 00 $100 00 To H. White, Caah coata surrender of jrour claim on White ; White pro- duce* Cash. If you sell the draft at 2 per cent, dis- count, Cash, Discount, or Loss and Gain, To H. White, Discount co*t» value. $98 00 2 00 $100 00 If at 2 per cent, premium, Cash, $102 00 To Preniiuno, or Loss and Gain, H. Wiiite, Premium produces value. 2 00 100 00 Kecd. from H. E. Black, 100 bbls. Flour, for sale on his acct., and pay freigiit in Cash, $40, H. E. Black's consignment, $40 00 To Cash, $40 00 H. E. B. const, cost value in Cosh. Cosh produced value, for which you have a lien on Black's goods. Black- might bo debited personall}', )>ut the better and usual method is to keep as above, until the proceeds are ascertained, which may then be carried to the personal acct., if not paid at once. If VOU sell the above 100 bbls. @ $7, receiving Cash $400, Note $300, Cash, $400 00 B, Rec., 300 00 To H. E. Black's Const, $700 00 Gash and B. R. cost value ; the Const, produces value. If you want to close the Const, and your Commission @ 2J per cent, on $700 is $17.50, and you charj^e $10 for storing the goods, and the freight as above $40, H. E. Black's Const., To Commission, Htorage, H. E. Black, $660 $17 50 10 00 632 50 The Const, costs value In the charges and Indebtedness to Black. Your services and use of warehouse produce value. Bl&ck produces value by allowing the proceeds to remain in your liauds. The proceeds due Black are got by deducting all the charges trom the sales. The entry for freight was made when paid, and does not appear in the closing entry. If Black draw on you for $300 on ncct. of the Confit., Dr. his personal acct., not the const, acct. The proceeds also go to nls personal acct., when the const, is closed. If he draw on you before ( "oust, is nlosed or any Sales effecteil, Debit him personally ; keep the const, acct. for salw uid charges only. If you ship to J. E. Bigelow, Boston, to be sold on your acct., poods worth $500, Shipment to Boston, To Mdse., Shipment to B. costs value. $500 00 $600 00 Why not debit Bigelow, He does not owe you, ;ill the goods are sold. 12 Double Entry Book-Keeping. ■'^^[^ T&AMSACTION. : H- Journal Entey. — "■"■""°'' If you draw on him for $200 on acct. of the Shpt., Credit bis personal acct., not the Shipt. acot. <^^^ If he send you an acct. Sales, showing proceeds due you $600, J. E. Bigelow, $600 00 To Shpt. to Boston, $600 00 Shpt. prodacc's value in Bigelow's indebtedness. 16. The General Rule for debiting and crediting (Art. 13), does not apply to examples such as the following, they not being business transactions, i. e., exchanges of values. The Double Entry principle of equality of debits and credits (Art. 11), must, however, be preserved, by making the proper entry for the thing received or given, and by placing an equal value to the opposite side of the Loss and Gain account, or Stock account. Lost Cash, $10, Loss and Gain, $10 00 To Cash, • $10 00 Found Cash, $5, Cash, $5 00 To Loss and Gain, $5 00 J. Smith owes yon $50. He absconds, and the amt. is lost, Loss and Gain, $50 00 To J. Smith, $50 00 As your claim on Smith ceases to be an Asset, you must Cr. Smith to close his acct., and Dr. L. and 6. for the loss. It is simply a transfer entry. If the Brig Alice, worth $5,000, be lost, uninsured. Stock, $6,000 00 To Brig Alice, $5,000 00 If you receive Cash, $3,000, from the Executors of your Uncle's Estate, • Cash, $3,000 00 To Stock, $3,000 00 In the last two case» ^ter in Stock acct. rather than L. and G ; as if such large amta. are entered in L. and G., that acct. will not show the loss or gain resulting from businesK transacted. Note. — " Stock " is the term cammonly used to represent the proprietor of the business. The pupil must notconfouLu it with Mdse., Stock on hand, <n promiM to f 1 1 nn WIJ^I— "!Wip^ 16 50 • Ledger Page Column. Fill in pag« of Ledger Account as you fYour own name. post. (See Art. 25). liMllillli 22 a Double Entry. Saint John, N. B., January IBih, 188 . Jan. 13 14 15 17 19 20 21 22 23 24 Bills Receivable, To H. Moore & Co.'a Const., Mdse., Shpt. to Boston (Smith & Curry), To Mdse., Brig America, To Bank of Nova Scotia, Cash, 26 To H. Moore & Co.'s Const., Cash, To Mdse, A. C. Field, To H. Moore & Co.'s Const., Cash. To Brig America, H. Moore & Co.'s Const., To Storage, Commission, H. Moore & Co., Expense, To Cash, H. Moore & Co., To Brig America, Cash, To Commission, Cash, To Storage, Cash, To W. H. Barnum, H. P. Hayes, S.-E. Payson, J. Thompson, Mdse., Cash, To Bills Receivable, Dr. Cr. 2 $962 50 3 S650 00 1 812 50 3 650 00 1 650 00 2 500 00 2 500 00 1 3 1,260 00 1,260 00 1 574 10 1 574 10 2 640 00 3 640 00 1 2 1,150 00 1,150 00 3 3 2,492 50 6 00 3 63 75 2 2,423 75 3 24 00 1 24 00 2 2 4.500 5 00 00 4,500 00 1 3 5 00 1 20 00 3 20 00 1 1 1,904 75 400 00 2 500 00 3 350 00 2 125 00 1 529 76 1 422 50 mc\ ET/V 2 422 50 Cr. 850 312 00 ■ 50 S50 00 500 00 260 00 574 10 540 00 150 00 6 63 i23 00 75 75 24 00 300 00 5 00 20 00 too )00 J50 [25 )29 00 00 00 00 76 '^ffftm^^^^m '^•'•^^^^^^mmmmmimmmmmmmmiiiiKmiimmmm Journal, Set I. Saint John, N. B., Jamumj 27th, 188 . 2ff 3 27 Cash, To 8hpt. to Boston, 1 3 Dr. Cr. Jan. 6724 18 $724 la i< 28 Mdse., To A. C. Field, H. Moore & Co., 1 2 2 4,153 26 2,278 1,875 14 12 It i< S. Kerr's Stock, Stock, To Bank of Nova Scotia, 1 1 2 600 500 00 00 1,100 00 tt 29 H. Moore A Co., To H. P. Hayes, S. E. Payson, 2 2 3 250 00 150 100 00 00 tt 30 A. C. Field, To Cash, Bills Payable, 2 1 2 825 00 675 250 00 00 (( 31 • Expense, To Cash, 3 1 148 00 148 00 u i( Cash, To Mdse., 1 1 529 16 629 16 l< « Bank of Nova Scotia, To Cash, 2 1 5,000 00 5,000 00 50 ■iiMfliiiii -24 Double Entry. LEDGER, SET I. 1 Ih • S. KERB'S STOCK. Or 188. -Jan. 28 81 To Bk. N. Scotia, « Balance, F. 3 8 $600 10,281 $10,831 00 21 188 . Jan. Feb. 1 1 By Sundries, *^ L.&Ci.Acct. P. " Balance, 1 8 $9,700 1.181 00 21 $10,831 21 $10,231 21 Dt • STUDENT'S STOCK. CV 188 . Jan. 28 81 To Bic. N. Scotia, ** Balance, P. 3 8 $500 10,181 00 21 21 188 . Jan. Feb. 1 31 1 By Sundries, •'^ L.&G.Acct. P. " Balance, 1 3 $9,500 1,131 00 21 $10,631 $10,631 21 $10,181 21 Dr. CASH. Or. 188 Jan. Feb. 1 2 6 10 17 17 19 22 23 24 26 27 31 To S.Kerr's Stock, " Mdse., " Sundries, " Mdse., " H. M. & Co., Consignment, " Mdse., " Brig America, " Commission, " Storage, Sundries, Bills Rec, Shot, to Boston, Mdse., " Balance, 188 . 1 $4,000 00 Jan. 7 1 737 50 8 1 1,100 00 9 1 728 16 12 2 1,260 00 20 2 574 10 30 2 1,150 00 31 2 5 00 31 2 20 00 81 2 1,904 75 2 422 50 8 724 18 ' 3 529 16 35 85 $13,155 $669 By Bk. N. Scotia, ''^ Mdse., " Do. " H. M. & Co., Consignment, " Expense, " Vi. C. Field, " Expense, " Bk. N.Scotia, " Balance, P. 1 $6,000 1 81 1 600 1 57 2 24 3 575 3 148 3 5,000 8 669 = $13,155 00 00 00 50 00 00 00 00 86 35 Dr '• MERCHANDISE. Q>' 188 . 188 . Jan^ 1 To S.Kerr's Stock, 1 $3,000 00 Jan. 2 By Cash, '^ Bills Rec, 1 $737 60 6 " H. Moore & Co., 1 1,278 50 2 1 422 60 8 " Cash, 1 81 00 10 " Sundries, ' 1 1,382 60 9 " Sundries, 1 1,512 10 10 " Cash, 1 728 16 28 " Do. 3 4,153 26 13 " Bills Rec, 2 312 60 81 " Lo88 and (jfain 14 " Shpt. to Boston, 2 650 00 Acct., P. 8 1,116 49 17 24 31 " Cash, " Do. " Do. 2 2 3 674 529 529 10 75 16 1 " Balance, = 35 18 81 " BaLperlnT., = 6,275 18 $11,141 $11,141 35 Feb. $5,275 Dt ■• f W. H. BARNUM. Or. 188 . Jan. 1 1 To S. Kerr, " Balance, 1 $1,200 00 00 00 188 . Jan. 6 24 81 By Cash, " Do. « Balance, P. 1 2 8 $500 400 800 00 00 00 $1,200 $1,200 00 Feb. $300 00 00 31 21 31 21 SI 21 Or. 00 00 31 21 81 21 81 21 Or. 100 00 81 00 100 00 67 50 24 00 )75 00 48 00 KM) 00 69 85 65 36 37 50 2 50 52 50 28 16 12 60 )0 00 '4 10 29 75 !9 16 5 18 1 35 00 00 00 00 Dr. Ledger, Bet I. H. P. HAYES.* 25 Or. 2 188 Jan. To 8. Kerr's Stock, 91,600 00 188 . Jan. 6 24 29 By Cash, do., " H. Moore & Co., •600 00 600 00 150 00 Dr. BRIO ''AMERICA." Or. 18A . Jan. Feb. 1 16 81 To J. Jones, " Bank N. Scotia, « liOSH & Gain Aoot., P. " Balance, 1 2 8 $8,000 600 1,150 oo; 00^ 00 1 00 1 188 . Jan. ! 19 21 81 $9,660 $4,000 Bv Cash, ''^ H. Moore & Co., ** BaI. per Inv., $1,150 4,500 00 00 J^OOO 00 $9,650 00 Dr. BILLS PAYABLE.* Or. 188 . Jan. 9 30 By Mdse., " A. C. Field, $400 250 00 00 Dr. BILLS RECEIVABLE.* Or. 188 . Jan. 2 13 To Mdse., " Sund., 183 . 1 1 $422 50 .Jan. 26 2 962 60 By Cash, 22 60 Dr. BANK OF NOVA SCOTIA. Or. 188 . Jan. 1 7 31 1 To J. Jones, " Cash, " do., " Balance, 1 1 3 $1,500 6,000 5,000 $12,500 00 00 00 00 00 188 . Jan. 15 28 81 By Brig America, " Sund., « Balance, P. 2 3 8 '$ 500 1,100 10,000 $12,500 00 00 00 00 Feb. $10,900 Dr. H. MOORE & 00., Toronto. Or. 188 Jan. 21 29 81 To Brig America, " Sund., " Balance, P. 2 3 8 $4,500 250 827 00 00 87 37 188 . Jan. Feb. 5 19 28 1 $5,577 By Mdse., " Their Const., " Mdse., " Balance, Dr. J. THOMPSON.* Or,. 188 . Jan. 10 To Mdse., 1 $225 00 188 . Jan. 24 By Cash, 2 \ $125 00 Dr. A. 0. FIELD. Or 188 . Jan. 10 19 30 81 To Mdse., " H. M & Co.'a Const., « Sund., « Balance, P. 1 $547 50 00 00 74 24 1188 . Jan. Feb. 9 28 1 2 3 8 640 825 777, $2,790 By Mdse., " do., By Balance, $512 2,278 $2,790 $777 10 14 21 74 • See note, Art. 39, Sect, 5. p^ 26 Double Entry, liEDOER, Set I. 3 Dr •• S. E. PAYSON. a 188 . Jan. 10 ToMdse., 1 $610 00 188 . Jan. 24 29 By Cash, " H. Moore ciCk)., 2 3 $350 100 00 00 Dr. H. MOORE & CO.'S CONSIGNMENT. Or. 188 . Jan. 12 19 To Cash, , " Sundries, 188 . 1 $ 57 60 Jan. 13 2 2,492 50 00 17 19 $2,550 13 By Bills Rec., " Cash, " A. C. Field, 2 2 2 $ 650 1,260 640 $2,550 00 00 00^ 00 Dr. SHIPMENT TO BOSTON {SMITH 8 Stocli, « 188 . 3 $ 172 00 Jan. 31 31 1 1,131 21 31 31 1 1.131 21 1 42 31 $2,434 Bv Mdse., P. Brig^wienca, " Shpt. to Boston, " Stor&ge, ^ '* Commission, $1,116 1,150 74 25 68 $2,434 42 49 00 18 00 75 Dr. BAIANCE ACCOUNT. Or. 188 Jan. ^1 31 31 31 31 31 31 31 81 To Cash, " Mdse., " W.H.Barnnm, " H.P.Hayes, " Brig America, " Bills Rec, ' Bk. of N.Scotia, ** J. Thompson, " 8. E. Payson, 188 . 1 $ 669 85 Jan. 31 6,275 IS 00 31 1 oOO 61 2 250 00 31 2 4,000 00 31 2 962 60 2 10,900 00 2 3 100 160 00 j OOi $22,617 By Bills Pav., P. " H. Moore & Co. " A. C. Field, " S.Kerr's Stock, " Stock, $ 650 827 777 10,231 10,131 $22,617 23 00 37 74 21 21 ■■WMIMtUMtl Msa P*P t* fcs >«(--« -- gto H- ' "- en © Oi o t« o o ''^g! Sooooo o ooooo^ S3 s 00 Cn fS Cn < I— I ' c;i -a © I— ' o ' ©oo©i > l« © O © 05 Cn ! "is Of 00 4« I g' ' S' to 4^ (O 08 60 to g* to to 8' i : : : I S2 o OS to ^ o»©od' { s ^ to' © "IS ^s^ to 9» f> to Ifi t : > : s t : ; I t i i t «o CO • 8 to , to : > : s i « 8 I o» I? o» s g. I 09 to ^© eo Ifi s : I I t : I t t t t I t eo «o to to »:;>;:» I 1 »»» 3 l->l->. . «&. «©iocoto« C9» « «oc?»©-^cs O© O t00©©0i<0 ^ 88' ' g' 888855^ ■«1 ~-3 ■ !SS 8 Q) Q H I I 30 Doi'BLE Entry. -» I 2. Do. 3. Do. 4. Do. 5. Do. 6. 40. Find the Loss or Gain in each of the following examples. When the Inventory* is an Asset, add it to the Proceeds ; when a Liability, add it to the Cost. 1. Mdse. Bought $1,200 worth ; sold it all for $1,500. Bought for $1,000 ; sold, $600 ; ou ht nJ, $500. Bought for $3,000; sold, $1,800; Inventory, $1,000. On hand, beginning, $500 ; bought, $1,260 ; sold, $1,827.50 ; Inventory, none. (1). On hand, beginning, $1,500. (2). Bought for Cash, $1,500. (3). Sold J. Smith, on account, $300. (4). Sold Hy. Jones, on his note, $750. (5). Sold for Cash, $1,200. (6). On hand, $1,200. Real Estate. (1). Bought House and Lot for $3,000. (2). Paid for repairs, $200. (3). Eeceived for rent, $300. (4). Paid taxes, $50. (5). Received for rent, $200. (6). Sold House «nd Lot for $3,225. 7. Real Estate. (1). Bought Lot of Land for $1,000, on which have built four houses costing each $2,150. (2). Paid for alterations, $100. (3). Received for rent, $500. (4). Paid taxes, $150. (5). Sold one House and Lot 'for $2,850. (6). Paid for repairs, $140. (7). The three houses and lots on hand are valued at $2,500 each. 8. Expense. (1). Paid for fuel, $20. (2). Gas bill, $15. (3). Clerks, $80. (4). Rent, f 100. (5). Stationery, $10. (6), Postage and bill stamps, $6. (7). Post Office box, $2. (8). Sundry expenses per Petty Cash Book, $13.56. (9). Have on hand stationery and stamps worth $6. 9. Ship ^ncAona. (1). Cost $40,000. (2). Paid for disbursements, $1,200. (3). Received for freight, $5,000. (4). Sold her for $39,250. 10. BBiGJSangrer. (1). Cost $20,000. (2). Paid for repairs, $3,000. (3). Paid for disburse- ments, $800. (4). Received for freight, $2,500. (5). Present value, $21,000. 11. Warehouse. (1). Paid for rent in advance, $500. (2). Paid for insurance of contents, $100. (3). Received for storage, $300. (4). Value of lease, for unexpired time, $400. 12. Interest and Discount. (1). Received from John Smith for use of money loaned him, $50. (2). Paid for interest on my note favor of H. Campbell, $20. (3). Got my note of $500 discounted at Bank ; discount off, $24.50. (4). Inventory : Accrued Interest on money loaned to Wm. Jones, $30. 13. Interest and Discount. (1). Paid for interest on money borrowed, $26. (2). Received for interest on money loaned, $36.50. (3). Inventory : Discount for unexpired time on note I hold against John Bright, $42.75. * An Inventory, as used in this work is any Asset or Liability nofflniown in the Ledger. ,fe mmrni^iimm^^mi^mmm QUESTIONS FOR REVIEW. If to any of the following questions answers can not be found in the text, it is because the Student sh. .Id be able to supply them from his knowledge of principles, with which he should, by this time, be familiar. Abt. 9. How many entries will be required to make a complete record of any transaction? Why? What will they be? 10. Will some transactions require more than two entries? Howmust Dr. and Cr. compare? 11. What is Double Entry? 12. What does Double Entry undertake? Give dis- tinction between Double and Single Entry. 13. Give rule for debiting and crediting. 14. What is a Journal form ? Office of word " To " ? 16. Does the General Rule for debiting and crediting apply to every possible entry ? What are the ex- ceptions? What must be done in such cases? What is the "Stock Account"? Describe the Day Book, Set I. What is the inner column? theouter? How is the Day Book opened? Huw continued? Describe the Journal. What about relative posi- tions of Debits and Credits? What is said of the use of the Journal? What is the Ledger? What is "Posting"? What two special objects are kept in view in post- ing? Give brief rule for posting. 26. What is said of the dates in the Ledger ? Where placed? What are "Post-Marks "7 Their use? What is a " Trial Balance " ? When taken ? For what purpose? Why should Dr. and Cr. Ledger totals balance? Is the trial an infallible test? Why ? What other tests can you apply ? What is the effect of including the closed Ledger accounts in the trial balance? 28. What is proof of some mistake ? How can mis- take be found? What is said of erasures in original entry books ? Why not allowable ? How can errors be corrected 7 How are errors in Ledger best corrected? Why are counter entries objectionable 7 What is the object of Classitication of Accounts? What will every Dr. excess of an account be ? How do you prove this ? What will every Cr. excess be? Why? What is an Asset ? A LiabUity ? Can you tell the Class by the Namtt 86. How many Classes of accounts? How do you dis- tinguish an Asset from a Loss ? A Liability from a Gain? 87, and Balance Sheet. What is a Balance Sheet? An Inventory? From what are Statements of Assets and Liabilities, and Losses and Gains made up 7 How can you 18, 19. 20 21, 22. 23, 24, 26, 27 29, 31 84. 8£, tell the Clasi of the account in your trial 7 How can you find the net Loss or Gain in such ac- counts as Shipment to Boston, Storage, (ic.7 How in property accounts, if some of the property is unsold? What was the cost of Mdse.? Sales? What do you do with the Inventory? For what purpose? What was the gain on Mdse.? How found? What is done with the Inventories hi sides using them to ascertain the Loss or Gain . What was the Net Gain on all the business of the Set? How found? What do you do with it ? To get what? How do you ascertain your Assets, as shown on Balance Sheet 7 How your Liabilities 7 What will the difference between Assets and Liabilities represent ? In what other way is the same result got ? 88. How do you close an account? 39, and Ledger. What is the object rf closing the Ledger? Can the Cr. side of Cash Account ever be the greate^'V Why ? What is entered on the Dr. side of B. R. >jCOunt? On Cr. side? What will balance repre- sent ? Which side must be the greater, if either 7 Why ? Which side of B. Pay. will be the greater 7 Why 7 What will balance represent 7 What will Dr. side of Personal Account show? What Cr. side? What does Cr. side of Mdse. Account show, before Inventory is entered 7 After Inven- tory is entered? What Dr. side, before closing entry Is made? Why is the Inventory brought down on the Dr. side after closing? For what \a red ink used? What is the first step taken In closing a Ledger? The second? The third? What are you now able to ascertain? How can you prove the result so ascertained is correct? What does the Loss and Gain Account show 7 On the Dr. side? On the Cr. side? What will the differ- ence represent 7 Where is the difference carried 7 What is shown on the Cr. side of the Partners' Accounts ? On the Dr. side 7 W hat will the bal- ance represent if the Cr. side is the greater? If the Dr. side is the greater? Why are closing en- tries written in red Ink? What is shown in the Balance Account? On the Dr. side? OntheCr. side ? How many ways of ascertaining, by Double Entry, the Net Loss or Ga5n, and Present Capital? Should you begin business without Assets or Lia- bilities, and close with a Gain, to what would your Net Capital be equal ? If you begin with Net Capital, and your Net Loss is less than Net Cap- ital, what will be your present Net Capital? (31) ilHH ANSWERS TO EXERCISES IN ARTICLE 17. 1. Cash To Stock. 2. Mdge. To Cash. 3. Cash To Mdse. 4. Mdse. To H. Morrison. 5. B. R. To Mdse. 6. Mdse. To B. P. 7. Cash To B. B. 8. B. P. To Bank Montreal. 9. Expense To Cash. 10. Cash, ToB. R., Interest, 11. B. P., Interest, To Cash, 12. C. Hay, Interest, To B. P., 13. Cash Discount, To B. R 14. B. R. to B. P. 16. J. Jaques To N. E. Blalr. 16. R. Banks To B. P. 17. B. R., Mdse^ Real Estate, A. Hay, To Stock 18. Stock, To B. P. Mortgage, S.Brown, 19. B, R. To A. Hay. . »107 00 . $163 00 12 00 8100 00 300 . 9490 96 904 8 800 00 1,000 00 2,500 00 1,200 00 «1,560 00 SIOOOO 7 00 «176 00 $103 00 $S00 00 $5,500 00 $300 00 1,000 00 250 00 20 21. 22, 23. 24. 2.5. 26. 27, 28. 29. 80. . Interest to Cash. . Mortgage To Cash. . P. Brown To B. P. . Mdse. To Cash. J. S. Const. To Cash. J. Smith (Personal Acconnt). To Cash, Mdse. S. Const., Shpt. to Quebec ji^oig oo To Mdse Cash R. E. J. To H. R. Cash To Shpt. to Quebec. H. R. To Shpt. to Quebec $850 00 160 00 31. 32. 33. 34. 35. 36. 37. Cash, Loss and Gain To R. B. Cf. Brig Amazon, To Cash B. P B. R., J. S. Const., Brig Amazon To Stock. P. & T. To Brig Amazon Brig Amazon To P. & T. B. Banks To Mdse. B. R„ To Cash, Interest, Cash ' ...... Interest, ' ToB. Pay $107 00 $200 00 14 00 $100 00 150 00 150 00 $1,000 00 15 00 ..$10,000 00 $600 OO $4,000 00 2,000 00 2,000 00 2,000 00 $100 00 7 00 $214 OO ARTICLE 40. No. 1, Net Gain,.. 2. " Do. .. 3. " Loss, .. 4. « Gain,.. 6. " Do. .. 6. " Do. .. 7. " Do. .. $800 00 100 00 200 00 77 50 460 00 47S00 860 00 No. 8. Net Loss, .. 9. " Gain,.. 10. " Loss,.. 11. " Gain,.. 12. " Do. .. 18. " Loss,.. $240 66 8,050 00 800 00 100 00 85 50 31 25 (32) < I ' "wmm^^ifi^imim ^mmmmmmmimmm Double Entry — Trial Balances. 83 From the following Trial Balances and Inventories or Statements similar to that on page 27 or page 29 : ^^'^- Tbial Balance. 1- Stock, 2. Mdse. (value of msold, $4,126). ... 3. Cash, 4. Bills Eeceivable, 5. BiJls Payable, 6. John Smith, ... 7. Expense, 8. Interest 9. Bank of British North America, . 10. Henry Jones, 11. David Hunt, ... make out Balance Sheets Results : Net Gain, $1,193.16. Present OapUal, $4,198.16. No. 2. Trial B\lance. 1. A.'s Stock, 2B.'8Stock, ••; •;; 3. Mdse. (value of unsold $3,214.12). 4. Cash, 5. Bills Receivable, 6. Bills Payable :;.' ;;; ^ '" 7- ^- I>a^i8 8. E. Fogg, Q I^ V. Expense, 10. Real Estate (value of unsold, $3,000), 11. Spring Hill Mining Co. Stock (value of unsold, $1,125) 12. Storage ^^ ;' 13. Commission, 14. Bank of Nova Scotia, Dr. Or. $3,000 1,500 8,276 9,140 5,175 1,200 927 528 1 14 325 00 6,720 00 2,150 00 00 00 50 75 10 00 00 6,642 __[_$H485 20 71 $12,276 j 18 11,000 00 4,120 10 6,419 42 1,840 00 1,600 00 614 I 25 729 j 25 2,725 60 1,100 1 00 20 loo 40 2,000 60 00 $44,485 20 Results: Net Loss, $1,126.28. / ^'« ■^««»»« «aZ, $186.50. ^> Exercises. 35 25. 26. 27 SET V. Links Requirkd : Stock 6, Cash 10, Mdw. 8, B. P. 8, B. R. 6, Interest Md Discount 7, Bank N. B. 8, L, A G. 4, Bal. 8. Feb. 16. Began business with Cash, 82,500; J. Taylor's note at 1 mo., dated Jan ,18th, $400; Mdse., 81,600. '. * I owe a note, favor of H. B. Moran, dated January 12, @ 30 days, $500. 17. J. Taylor prepays his note, $400, less 4 days' Discount @ 7 %, 31e. 18. Sold H. A. Burk, on his note- at 2 mos., 5 hhds. Sugar — 7,850 lbs. @ 10c. 19. Bot. of J. E. Baker, for Cash, iVIdse.. $500. 20. Sold E. B. Cox, for Cash, 10 H. C. Tea — 487 lbs. @ 40c. 21. Sold R. O. Bowes, on his note, 10 days, 5 bbls. Currants — 1,618 lbs. @ lie 23. Bot. of J. P. Hay, for Cash, Mdse., $300. 24. Paid my note favor H. B. Moran, $500 and 10 days Interest, 96c. Sold B. C. Damery, for Cash, 2 H. C. Tea ~ 102 lbs. @ 42c. Discounted at Bank of New Brunswick, H. A. Burk's note, due April 2l8t $785. Discount off, 56 days, $8.43 ; proceeds reed, in Cash, $776.57. ' Sold at auction bal. of Mdse. on hand ; Sales, $1,510.40, less Auctioneer's Comm. @ 2%, $30.20. Reed. Cash for proceeds. Discounted for Cash R. O. Bowes' note, due Mar. 5. Discount off, 7 days, 24c. 28. Deposited Cash on hand in Bank of New Brunswick. Results : AW Gain, $270.88 ; Present Net CapUal, $4,270.88. SET VI. Lines Requibed: Stock 6, Cash 8, Mdse. 9, B. P. 4, C, Const. 6, Shpt. Mont. 6. B. R. 7. S SimMon 3 E N. Cooper, 6, Com. 3, Storage 8, L. & 6. 8, Int. and Disot. 3, Bal. 7. ^- «• /, o. oimpson 3, fc. March 1. Began business with Cash, $5,000. 2. Bot. of H. Thompson, Mdse., $4,000; gave in payt.. Cash, $1,500; Note, @ 3 mos., $2,500. 3. Reed, from J. R. Conway, Montreal, for sale on his account and risk, 300 bbls Flour. Paid freight m Cash, $120. 4. Bot. on 2 mos. note, and shipped to E. N. Cooper, Montreal, for sale on mv account, 500 tons Coal @ $4.50. 6. Sold Henry Clay, on his 1 mo. note, 160 bbls. Flour (from Conway's Const ) @ 16.25 ; and 100 bbls. Meal (own goods), @ $4.50. 6. Sold S. Simpson 500 bags Salt @ $1.25. Reed, in pay't, Cash, $400. Bal. on acct., $225. 8. Sold V. R. Stone, on his note @ 10 days, 140 bbls. Flour @ $6.20 (bal. of Conway's Const.) 9. Closed Conway's Const, and rendered him an acct. of Sales. My charges (in addition to freight paid), are : Storage, $10 ; Com. @ 2i % on Sales, |46.70. Remitted J. P. Conway his Net Proceeds by 20 days' set., dft. on E N Cooper, $1,691.30. j & > • • 10. Sold J. H. Shields, for Cash, 85 cwt. Iron @ $8.10. 11. Sold R. Spry, on his note @ 3 mos., 8 hhds. Sugar, 12,960 lbs. @ 10c. 12. Reed, from E. N. Cooper, an acct. Sales of Shpt. to Montreal. My Net Pro- ceeds, due April 10th, are $2,462.10. 13. Pre-paid my Note, favor H. Thompson, due June 5th, $2,500. Disct. off, 84 days, $40.27. Gave Cash for bal., $2,459.73. 1Tj[. "riiniTnTTrflT^ ' 36 Double Entry. 15. R. Spry pre-pays his note, due June 14th, $1,296. Disct. off, 91 days, $22.62. Reed. Cash for Proceeds, $1,273.38. Inventoby : Md«e. valued at $1,276. Rbsults : Net Gain, «620.95. Pruent CapUal, S8,620.96. SET VII. LiHES FOB Sets VII. awd VIII. Student's Stock 8, Cwh 17, Brig Canada B, Mdie. 12, B. R. 7, J. 8. Root, 6, Exp. 9, V. R. a Const. 0, B. P. 7, Shpt. to B. 6, Storage 3, Com. 8, Int. 4 Dlsot. 9, L. A 0. 18, Sand's Stock 6, Shpt. to N. Y. 4, Bal. 7. April 1. Have on hand at date Cash, $1,200; Brig Canada, valued $8,000; Mdse., $1,800, and J. E. Sines' note $1,000, dated Jan. Ist, payaWe m, 3 mos. with Interest @ 7 %. Am owing J. 8. Root, on % $6,000. 2. Paid Cash, in advance, for 3 mos Rent, $100 ; Books and Stationery, $40. 3. Reed, from V. R. Smith, Kingston, to sell on his %, 50 tubs Butter. Paid Freight, $16. 5. Sold M. Cook & Co. for Cash, 10 tubs Butter (V. R. S. const.), 476 ft>s. @ 16/. 6. Paid Cash for disbursements of Brig Canada, $600. 8. Bot. of P. R. Bill on ray note @ 1 mo., Mdse., $2,600. 10. Shipped A. B. Crump, Boston, for sale on my %, Mdse., $1,200. Paid in- surance on do. in Cash, $24. 12 Sold H. A. Butt, on his note @ 2 mos., 20 tubs Butter (V. R. S. const.), 976 lbs. @ 14i/. 15. Paid for Postage Stamps and Stationery, $10. 17. Reed. Cash for Freight of Brig Canada, $750. 19. Sold for Cash 40 tubs Butter (bal. V. R. S. const.), 1,042 tt»s. @ 15J/. 20. Closed V. R. Smith's const., and rendered him an % sales. Charges; Storage, $5 ; Com., 2Jfo on Sales, $9.36 (Freight already entered) ; Smith s Net Proceeds remitted in Cash, $345.07. 21. Sold J. 8. Roots on %, 10 hhds. Sugar, 16,270 lbs. @ 10/. 23. Reed. Cash, $1,013.30, in payt. J. E. Sines' note, $1,000, and 19 days' Interest, $13.30. 24. Reed, from A. B. Crump, Cash, $1,186.14 for Net Proceeds of Shpt. to Boston. 26. Accepted J. S. Roots' 3 mos. dft. favor E. 8. Cotton, $3,000. 28. Paid Clerks' Salaries, 8100. Gose books for purpose of ascertaining present standing, preparatory to admitting John Sands as partner. Close L. & G. Acots. only ; let the others remain open. Inventory : Mdse. on hand, valued at $2,100 ; Expense, Two months' unex- pired rent paid in advance, $66.67 ; Books and Stationery and Stamps on hand, valued, $35. RESULTS : A'et Lou, «1,381.53 ; Preteiit Net Intoheney, $1,381.58. SET VIII. May 1. Admitted John Sands as partner, with a capital of $5,000, which he has paid in Cash. Losses and Gains are to be shared equally, and each partner will be allowed Interest @ 7 ^ per annum, on his net investment, or charged with interest on his net insolvency. 8. Bot. of McKay & Co., Mdse., $3,000, on 3 mos. note, drawn payable with ' Interest @ o %. Exercises. 37 4. Shipped to Goss & Hatt, New York, for sale on our acct, Mdse. valued at 83,500. Paid Insurance @ 2 %, and Truckage, $10. 6. Pre-paid note favor P. R. Bill, drawn Apr. 8th. Disct. off. 5 days, $2.40. Gave Cash for bal. 8. Loaned H. Y. Simonds, Cash, $4,000, ^ 10 % Interest. Reed, his note, on demand. 10. Paid J. S. Roots' order on us, favor A. B. Doe, in Mdse., $150. 11. Exchanged notes with R. E. Mack, for mutual accommodation, each note drawn at 30 days, for $300, and have discounted Mack's note at Bank B. N. America, receiving Cash, less 33 days' Disct., $1.65. 13. Our tender of $5,000, for goods belonging to the insolvent estate of Moss & Smith, has been accepted, and we take the goods, paying the $5,000 in Cash. 14. Sold J^ A. Merry a portion of above goods for $3,000, receiving his 3 mos. pote, drawn payable with Interest @6 %. 16. Sold at auction, for Cash, goods producing $3,516.20, less Auctioneer's Com* @ 2i %, $87.90. 17. Paid for Books and Stationery, Cash, $12.50. 20. Sold Mdse., $450, and reed, in payt. our note, drawn 11th inst., $300, fav. R. E. Mack, less 24 days' Disct., $1.38. Cash for bal. 24. Disctd. our acceptance of Apr. 26th, fav. E. S. Cotton, Disct. off, 67 days. $38.54. PaidWinCash. ' '' 27. H. A. Butt pays his note of Apr. 12th ; Disct. off, 19 days, 51/. ; reed. Cash for bal. 28. Reed, from Goss & Hatt, Cash for N. P. of Shpt. to N. Y., $3,896.10. 29. H. Y. Simonds pays his note of 8th inst., $4,000, with Interest, 21 days, $23.01. 31. Paid Clerks' Salaries to date, $125. J. Sands, credit Interest 1 mo. on his Capital, $5,000, is $29.17. Students, debit " " Insolvency, $1,381.53, is $8.06. Inventory of Assets and Liabilities not shown on Ledger. AssETB. — Mdse. on hand valued at $4,276.24. Expense: One months' unexpired rent paid in advance, $33.33 ; Books and Stationery on hand valued at $25. Liability. — /n/cres« on McKay's note of 3rd inst., 28 days, $13.81, less Interest on J. A. Merry's note of 14th inst., 17 days, $8.11. Results : Net Gain, $4,876.16. ASSE TS. lilABIIilTIES. Cash, Merchandise, .... Bills Receivable, Expense, $5,509 87 4,276 24 3,000 00 68 33 Bills Payable, Interest, J. S. Root. Student's Stock J. Sands' " .... $3,000 00 5 70 .... 1,323 00 .... 1,048 49 .... 7,467 25 $12,844 44 $12,844 44 Single Entry. 41. Single Entry is designed principally for those doing a small business, and who wish to undertake only the keeping of running accounts with the persons with whom they transact business. The Single Entry method is based on the theory that only Personal Accounts need be kept in the Day Book and Ledger, as the other Assets and Liabilities can be ascertained without the aid of any account. Thus, Cash can be got by counting the money on hand ; W jdise, by " taking an account of Stock," &c. Net Capital may be found by ^mg the difference between the Assets and Liabilities ; and the Net Loss or Gain, for any given period, by taking the difference between the Net Capital at the beginning and termination of that period. 42. If one's business is very limited, one book only of accounts may be suf- ficient, viz. : the Ledger, kept as illustrated in Art. 7, by setting apart a space for an account for each person with whom he does business on account, and entering in this space, in Ledger form, a record of each transaction affecting his Dr. or Cr. relation to that person. 43. But if his business extends, and he has numerous transactions with many persons, this method may be found impracticable, and other books will be required. The principal of these will be the Day Book and Cash Be ''. If he gives and receives notes and bills, a Bill Book will be found useful. > Bill Book will be given in Set XI.) 44. In the Day Book is recorded, in the order of its occurrence, every trans- action resulting in a Personal Account, Dr. or Cr., i. e., whenever anything is received or given on account. The form is very simple, the purchase, sale, &c., being indicated by the abbre- viation Dr. or Cr. For instance, if you sell John White 1 bbl. Flour for $6.25, you would indicate the transaction thus : John White, Dr. To 1 bbl. Flour, «6.25 Should he pay you $5 on account, you would write — John White, Cr. By Cash, on acct., 85.00 45. When anything is bought, or sold, and paid for at once, no Day Book entry is required, as no Personal Account results from such a transaction. If however, there be any special reasons for wishing to record such a transaction in the Day Book, the person may be both debited and credited for the same amount. 46. When you buy goods, you can enter them in your Day Book " By Mdse, per Inv. No. ," and number and file the Invoice, or paste it into a book for reference ; but if you sell goods on account, you must enter the items of the sale in the Day Book, as in this case you have no Invoice to refer to. (38) Transactions, Etc., Set IX. 87 47. The form of Cash Book given in this Set is very simple, and the book is easily kept. All Cash received is entered in the left hand (Dr.) money column, and all Cash paid in the right hand (Cr.) column. The date, and statement of what the Cash is received or paid for, must be entered at the Kame time. The Cash Book may be balanced at any time, by entering on the Cr. aide (in red ink), the Cash on hand, after which, if the book is correct, the two columns will add equally. If found correct, rule, foot, and " bring down '* the balance (black ink), under the closing lines in the Dr. column. 48* When there are many Cash transactions, the Cash Book should be balanced daily ; if but few, it may be balanced weekly, or at any convenient time ; but the sooner an error is discovered the more easily it is corrected, and balancing detects errors. 49. The Ledger is the book (Arts. 21 and 22) in which the Day Book entries are classified under their respective Ledger Titles. When the entry consists of but one item it may be copied into the Ledger, just as it appears in the Day Book (see John White's Cr. entry of May 8th). When there are several items of the same kind, or more than can be entered on one Ledger line, use the word " Mdse.," or whatever word or phrase will best indicate the nature of the transaction. Enter carefully the dates (Art. 25) and references. 50. After the posting ia completed, balance (Art. 7) all the accounts except stock, and transfer the balances to the Balance Account, placing all the Dr. balances (Asf ts) pn the Dr. side, and all the Cr. balances (Liabilities) on the Cr. side. Write i this same account all your other Assets and Liabilities (Cash, Mdse., &c.), &i '• which he difference between the two sides of the account will represent the Pi\ nt Net Capital, if the Assets are the greater, or Insolvency, if the Liabilities are the greater. 51. Next compare the Present Capital or Insolvency with the Net Investment (Stock Account) to ascertain the Loss or Gain. For the Loss or Grain make a Day Book entry (see last entry in Day Book), debiting Stock, if a loss, crediting Stock, if a gain. After the last entry is posted, balance the Stock Account, and this balance will exactly close the Balance Account. TRANSACTIONS, SET IX. (Single Entry).* May 1. Began business with a cpnital of Cash on hand, $500. Cr. Stock Acct. in the Day Book and enter Cash in Cash Book. 3. Reed, from Holland & Jack, on % Dry Goods, f In v. No. 1, $187.40, " Jones & Smith, on % Groceries, " " " 2, 240.96, " O. J. Davis, Boots and Shoes, " . " « 3, 120.18, for which 1 pay Cash. Cr. Holland A Jack and Jones & Smith in the Day Book ; you will not open an account in the Day Book with Davis, having paid him in full, enter in Cash Book only. * The Student must keep In mind that this is not a book of accounts, but a history of the business done, from which he is to ^rite up the Day Book, etc. Were he keeping an actual set of books this history would not be written, but he would inxke hib entries dirtctly in the Day Book and other original entry books. 40 Single Entry. 4. Sold A. J. Brown, on %, 1 bbl. Flour, 86.25 ; 1 bbl. C. Meal, $4.10. Sold H. R. Jenkins, on %. 1 pr- Men's Boots, $4.50, 25 tt>s. Sugar @ 12c. ■6. Sold Mrs. Amos Hope 12 yards Merino @ 60c., 10 yards Cashmere at 75c. Reed, in part payt. 10 doz. Eggs @ 15c., 40 lbs. Butter @ 20c. Bot. of James Henderson for Cash, 45 bush. Oats @ 40c. " Olive & Stewart, " 1 Iron Safe, $160. Dr. Mrs. Hope in Day Book for Sales and Cr. her for pnrcha8e,.a8 there is a balance remaining unsettled. Enter last two ituius in Cash Book only. 6. Sold John White, on %, 1 suit Clothes, $25, 1 pr. Men's Long Boots, $6.25. Paid Cash for Store Fittings, $5.60. Sold Henry Rhodes, on %, 25 lbs. G. Sugar @ 12c., 2 lbs. Japan Tea @ 90c. 7. Sold J. E. Kinsman 2 bbls. Flour @ $6.25, 10 yards Broadcloth @ $3.75. Reed, in payt. 20 bush, oats @ 40c. Sold Chas. Condon 1 suit Clothes, $28.50. Reed, in payt. 40 doz. Eggs @ 15c., 20 bush. Oats @ 40c. Enter same as Mrs. Hope's, 5th inst. 8. Sold John White 10 gals. Molasses @ 50c., 2 bbls. Flour @ $6.30. Reed, in payt. 60 tbs. Butter @ 15c. Sold Jones & Smith 85 bush. Oats at 50c., 50 doz. Eggs @ 18c., 100 lbs. Butter @ 22c. The Cash Sales for this week have amounted to $140.17. In actual business Cash Sales would be entered daily, but they will be entered weekly here in order to save space. Balance the Cash Book (Art. 47), see if the balance agrees with the Cash on hand, S246.39. 10. Sold J. E. Kinsman 1 bbl. Pork, $18 ; 2 bbls. Meal @ $4.10 ; 2 prs. Ladies' Kid Boots @ $3.50. Reed, his sight dft. in my favor on Holland & Jack for $40, which I indorse to H. & J. on %. Dr. Kinsman for the sales and Cr. him for the order ; then Dr. H. & J. for the order, as you are owing them, and transfer it to them as a payment. Reed, from John White, on %, Cash, $25. Day Book and cash Book ; write Receipt. Sold A. J. Brown, per wife, 15 yards Calico at lOc, 20 yards Sheeting @ 30c., 4 yards Linen @ 60c. Bill sent. When goods are delivered to one person on another's acct.. always enter on the Day Book the one to whom delivered. When a bill is given at the time of Sale note the fact ; then, when you make out the person's acct., you can say " Goods per bill," instead of naming the items of the Sale. 11. Reed, from H. R. Jenkins, Cash on % $5. Day Book and Cas? Book. Paid for Postage Stamps, $1. c.B.oniy. Bot. of Matthew Parker, for Cash, 100 bush. Oats @ 50c., 50 doz. Eggs at 12c. C.B.oniy. 12. Sold Mrs. Amos Hope, on %, 5 yards Liiaen at 60c., 12 yards Merino @ 75c., 1 pr. Ladies' Kid Boots, $4.25. Sold Henry Rhodes, on % 2 prs. Ladies' Fine Serge Boots @ $2.50, 7 yards Tweed (for suit) @ $1.50. 13. Bot. of A. J. Brown, on %, 60 doz. Eggs @ 12c. Bot. of Mrs. Amos Hope, on %, 120 lbs. Butter @ 18c., 20 doz. Eggs @ 10c. 14. Sold Jones & Smith, on % 100 lbs. butter @ 24c., 130 doz. Eggs @ 14c. 100 bush. Oats (a), 60c. Transactions,, Etc., Set IX. 41 15. Reed, from Chas. Condon, Cash in full of %, $14.60. Cash Sales this week, $164.80. Foot and close Condon's anot., and write a Beceipt for him (Form XI.) Counted Cash, found amount on band $398.69. Balance Cash Book. 17. Bot of Jones & Smith, Groceries, per Inv. No. 4, $180.72. 18. Sold Mrs. Amos Hope, on %, 20 yds. Muslin @ 15c. ; 14 yds. Sheeting @ 28c. 19. Sold Chas. Condon, 1 pr. Men's Long Boots, $6.50 ; 1 Bbl. Flour, $6.20. 19. Loaned John White, Cash, $100, to be returned 24th inst. n. B.andC.B. 20. Lost from pocket, Cash, $10. CRoniy. Reed, from Hy. Rhodes, Cash on %, $12.50. d. b. and c. b. 21. Bot. of O. J. Davis, for Cash, Boots and Shoes, per Inv. No. 5, $75.16. C, B. only. 22. Reed, for Cash Sales this week, $112.20, c. B.-cash on hand, «888.23. 24. John White has returned loan of 19th inst., $100. ) Paid Holland & Jack, on % $90 ) 25. Sold H. A. Jenkins, on % 1 obi. Flour, $6.30; 1 pr. Pants, $3.75. Sold Hy. Rhodes, on % 1 pr. Men's Boots, $4.50 ; 1 Tweed Coat, $7.25. 26. A. J. Brown calls to settle his % ; the bal. due me is $13.05. I allow him 5 % Discount, and he gives me Cash in full, $12.40. In D. B., Cr. Brown for Cash and Disct. Enter Cash in C. B. 27. Sold J. E. Kinsman, on %, 1 suit Clothes, $28.75. 28. Sold John White 2 prs. Ladies' Kid Boots, $3.75 + $4.35. 29. Sold H. R. Jenkins 10 gals. Molasses @ 50c. ; 1 bbl. Flour @ $6.35. 31. Paid Clerk, A. Adams, 1 mos. wages, $ 33.33 -j *' 1 month's rent, 12.50 [^ c.B.oniy. Cash Sales this week, 125.65 ) Inventory : On a careful examination of goods in Store, I find I have on hand Mdse. valued at $152.59 ; Safe, $150. D. B. and C. B. 42 Single Entry. DAY BOOK (Single Entry), SET IX. 1 * , May Ut, 188 . May « « « 6 K Cr. Cr. Cr. Dr. Stock Account, By Cash on hand beginning business, Holland & Jack, By Dry Goods, f Inv. No, 1. Jones & Smith, By Groceries, "^ Inv. No. 2, A. J. Brown, To 1 bbl. Flour, $6.25 ; 1 bbl. Meal, $4.10, H. R. Jenkins, To I pr. Men's Boots, " 25 lbs. G. Sugar @ 12/, Mrs. Amos Hope, To 12 yards Merino @ 60/, " 10 " Cashmere @ 75/, By 10 doz. Eggs @ 15/, " 40 lbs. Butter @ 20/, John White, To 1 Suit Clothes, $25 ;, 1 pr. Men's Long Boots, $6.25 Henry Rhodes, Dr. To 25 lbs. G. Sugar ® 12/, $3 ; 2 lbs. Japan Tea @ 90/, $1.80, J. E. Kinsman, Dr. To 2 bbls. Flour © $6.25, $12.50; 10 yards Broadcloth ® $3.75, $37.50, Cr. By 20 busL. Oats @ 4Qf, Dr. $4.50 3.00 Dr. $7.20 7.50 Cr. $1.50 8.00 Dr. L. P. Chas. Condon, • To 1 Suit Clothes, Dr. Cr. By 40 doz. Eggs @ 15/, C>6.00 ; 20 bush. Oats @ 40/, ' $8.00 2 2 2 $500 187 240 10 14 31 50 8 28 14 00 40 9& 35 50 70 50 25 80 00 00 50 00 ^ Let the Student uie his own address, also his own name when writing Bills, Receipts, &o., and in every fMpect consider the business his own. In the " L. P." (Ledger Page) col. insert the page of the Ledger acct. (Arts. 20 and 49) when posting— leave blank till then. 00 40 96 35 50 70 50 25 4 80 50 00 8 00 28 50 14 00 Day Book, Set IX. , May Bth, 188 . May 8 John White, To 10 gals. Molasses @ 50/, " 2 bbls. Flour ® $6.30, 10 Dr. $ 5.00 12.60 Cr. 11 12 13 14 15 By 60 lbs. Butter @ 15/, Jones & Smith, Br. To 85 bush. Oats @ 50/, $42.50 " 50 doz. Eggs @ 18/, 9.00 " 100 lbs. Butter, @ 22/, 22.00 J. E. Kinsman, Dr. To 1 bbl. Pori-, US ; 2 bbls. Meal, $4.10, $8.20, $26.20 " 2 prs. Ladies' ICid Boots, $3.50, 7.00 By Sight Draft on Holland & Jack, ^'^• Holland & Jack, Dr. To Kinsman's Draft, remitted them on % John White, Ci.. By Cash on %, A, J. Brown (per wife), Dr. To 15 yds. Calico ® 10/, $1.50 ; 20 yds. Sheet- ing @ 30/, $6; 4 yds. Linen @ 60/, $2.40. (Bill Sent). H. R. Jenkins, Cr. By Cash on % Mrs. Amos Hope, Dr. To 5 yds. Linen @ 60/, $3.00 ; 12 yds. Merino @ 75/, $9.00; 1 pr. Ladies' Kid Boots, $4.25, Henry Rhodes, Dr. To 2 prs. Ladies' F. Serge Boots @ $2.50, $ 5.00 " 7 yds. Tweed, for Suit @ $1.50, 10.50 A. J. Brown, Or. By 60 doz. Eggs @ 12/, Mrs. Amos Hope, Cr. By 120 lbs. Butter at 18/, $21.60 " 20 doz. Eggs at 10/, 2.00 Jones «fe Smith, Dr. To 130 doz. Eggs at 14/, $18.20 " 100 bush. Oats at 60/, 60 00 " 100 lbs. Butter at 24/, 24.00 Chas. Condon, Cr. By Cash in full of % c» L. p. 2 2 1 2 1 2 1 1 1 1 1 4a 2 $17 9 60 OO 73 33 40 40 25 50 20 OO OO OO 9 5 16 15 7 23 90 OO 25 50 20 60 102 14 20 50 ^iiWWi 44 3 Single Entry, Day Book, Set IX. , May nth, 188 . May 17 Jones & Smith, By Groceries per Inv. No. 4, Cr. L. P. 1 $180 72 « 18 Mrs. Amos Hope, To 20 yds. Muslin at 15/, " 14 " Sheeting at 28/, Dr. $3.00 3.92 1 6 92 u 19 Chas. Condon, To 1 pr. Men'a Long Boots, " 1 bbl. Flour, Dr. ^6.50 6.20 2" 12 "0 *t •( John White, To Cash loaned — to be returned 24th inst., Dr. 2 100 00 4( 20 Hy. Rhodes, By Cash on %, Cr. 2 12 60 4( 24 John White, By loan of 19th inst. returned, Cr. 2 100 00 m ■*t ii Holland & Jack, To Cash on %, . Dr. 1 90 00 ■it 1 25 H. A. Jenkin' , To 1 bbl. Flour, $6.30 ; 1 pr. Pants, $3.75, Dr. 1 10 05 4t (( Hy. Rhodes, Dr. To 1 pr. Men's Boots, $4.50 ; 1 Tweed Coat, $7.25, 2 11 75 4t 26 A. J. Brown, By Disct. 5 % allowed on his %, «' Cash in full of % Cr. $ 0.65 12.40 1 13 05 4t 27 J. E. Kinsman, To 1 Suit Clothes, Dr. 2 28 76 *t 28 John White, • To 2 prs. Ladies' Kid Boots, $3.75 + $4.35, Dr. 2 8 10 *t 29 H. R. Jenkins, To 10 gals. Molasses at 60/, " 1 bbl. Flour, Dr. $5.00 6.35 1 11 35 *t 31 Stock Account, By Net Gain, as follows : Present Assets per Bal. % L. P. 2, Liabilities, " " Capital, Capital .Invested, per Stock %, L. P. 1, Net Gain (Ex. of Pres. over Form'r Cap.), Cr. $890.86 303.38 $587.48 600.00 $87.48 1 87 48 180 6 12 100 12 100 90 10 11 13 28 8 72 92 "0 00 50 00 00 05 75 05 75 10 Cash Book (Sing e Entry), Set IX. CASH BOOK (Single Entry), SET IX. 4& 188 May (f « « « Cash. 10 11 15 (( 19 « 20 « 21 (( 22 24 26 29 31 Amount on hand at date, Paid O. J. Davis, Inv. No. 1, " James Henderson, 45 bush. Oats @ 40/, " Olive & Stewart, 1 Iron Safe, " for Store Fittings, Reed, for Sales this week, Balance of Gash on hand, .^' Balance on hand, Eecd. frora^ John White on % H. R. Jenkins on %, Ffad for Postage Stamps, . " " M. Parker, 100 bush. Oats @ 50/, 50 doz. Eggs @ 12/, Reed, from Chas. Condon in full of % " for Cash Sales this week, Balance on hand. Balance on-hand, Loaned John White, to be returned 24th, Lost from Pocket, Reed, from Henry Ilhodes on % Paid O. J. Davi^Inv. No. 5, Reed, for Cash Sales this week, Balance lOiji hand, ^ Dr. Cr. fial^Fjpe on hand, Rec(S**froW John White, loan of 19th inst., ,'PaSa^;Holland & Jack on % Re^d, from A. J. Brown, in fiiU of % "Paid Clerk 1 mo. Sala^, " 1 mo. Rent, Reed, for Cash Sales, Balance on hand. Balance, 8500 140^ 00 $540 $246 25 5 14 164 $455 $398 12 112 .,'• $120 18 150 5 17 39 00 00 50 80 69 246 $523 $338 100 12 125 $576 $440 89 50 20 39 23 00 40 65 28 46 $540 00 OO 60 3» 17 398 00 00 00 6» $455 69 $100 10 75 338 $523 00 00 le n 39 $90 •33 12 440 $576 00 33 50 4& 28 46 Single Entry. 1 Dr. LEDGER (Single Entry), SET IX. STOCK. Or. Dr. HOLLAND & JACK. Date. Items. D.B. Page. Amount. Date. Items. D.B. Page. Amount. 188 . May 81 To Balance Net Capital, F. 2 $587 4S 48 188 . May 1 31 By Cash, " Net Gain, " Balance, 1 3 $500 87 00 48 $587 $687 48 $587 48 Or. 188 . May 10 24 81 To J. E. Kins- man's order, " Cash, " Balance, P. 2 3 2 $40 90 57 00 00 40 188 . May 3 $187 40 By Invoice No. 1, Balance, $187 $187 $57 40 40 40 Dr. JONES 8. Butter 8 « « 2 17 60 ®W, o it $9 00 19 « Cash, 3 100 00 10 " Cash, 2 25 00 28 " Mdse., 3 8 10 24 << « 3 100 00 " Balance, 95 81 ** Balance, P. 2 22 95 $156 $156 95 $22 BALANCE ACCOUNT. 188 . May 31 To H.E.Jenkins, " Mrs. Amos Hope, " John White, " Hy. Khodes, " J. E. Kinsman,' •* Chas. Condon, " Cash, "^ C. B., " Mdse. & Safe, Inv., 188 . 1 $ 23 90 May 31 1 4 77 2 22 95 2 19 55 2 63 95 2 12 440 302 70 45 69 86 $890 By Holland & Jack, " Jones & Smith, " Stock, Or. $12 19 $32 50 55 06 Or. $ 8 40 $111 00 00 95 Dr • CHARLES CONDON. Or 188 . May 7 19 To Suit Clothes, " Sundries, 1 3 $28 50 188 . May 7 15 By Sundries, " Cash, 1 2 $14 14 OB 50 $28 50 $28 50 $12 70 Imbiliiiea. $ 57 245 587 $890 40 98 48 86 % ^iSWhJMfM; I 'm iii aiTI« i- pareut discrepancy of $300 ; this is caused by one of your checks not having been presented at the Bank (55) at the time your book was left at the Bank to be balanced. Observe how the clerk enters this. When Check No. 6 Is paidi their account will agree with yours. Remember: — You must not yourself make any entries on t> » Dr. side of your Bank Book, i88 . June 1st. ' Amt. in (Bank, S476 92 June 2ind. Qeposited Cash; 500 00 $976 92 Check No. 1, 496 19 $480 73 Check No. ^, June yth. 100 00 $380 73 deposited Checks : — Jas. Huntley, $75.15 Sam'l Strong, 100.00 John Bennett, 26.14. Cash, 465.88 1 667 17 $1047 90 Check No. ^, 250 00 $797 90 Check No. 4, 150 00 $647 90 Check No. 5, June I'Zth. 321 15 $326 75 (Deposited Cash, 700 00 $1026 75 Check No. 6, 300 00 $726 75 Check No. 7, June igth. 50 17 $676 58 (Deposited, Amount forward. 500 00 $1176 58 92 73 00 73 97 9' SO oo ^47 90 ^21 ^ 176 oo 75 oo 75 !1 58 00 58 Check Book. 55 June 3, 188.. fR. 0. (Burns (&- Invoice No. 2. No. iS. June 4, 188.. Northup &' Cox on acct. No. ^. June 8, 188. W. J. Barnes &' Co. Ot, acct. No. 4. June 8, 188.. J . H. Strong, on acct. No. 5. June 10, 188 (K. 0. (Burns &■ Co. in full of their Invoice No. ^. $496 19 100 250 150 321 00 No. 1. Junejrd, 188 . Sunk ^f Jrtm Stuii^witk. (Pay to (R. O. (Burns &* Co., or (Bearer, Four Hundred &'J^inety 'Six &'^ Dollars. ? 496.19. J^n 6^9md. No. 2 June 4th, 188 Sank of Jrem StuMmkk, (Pay to Jlorthup ^ Cox, or (Bearer, \ One Hundred Dollars. \ ^100. (Studtnf). 00 00 No. 8 June 8th, 188 . Sank of Jrt^m StunSmitk. (Pay to W. J'. (Barnes & Co., or Nearer, — - Two Hundred and Fifty -~~~- Dollars. (yO. (.student). No. 4. June 8th, 188 Sank 0/ J^tnf^ StunSmick. (pay to — J. H. Strong, —— or (Bearer, "— One Hundred and Fifty — Dollars. \ ^1^0. (Student). !p No. 5. .June 10th, 188 Sank cf Jrtm StunSmkk. (Pay to (P. 0. (Burns & Co., or (Bearer, Three Hundred &^Twenty-one&-^ Dollars. i$^21.1^. {Student). I I 66 Single En1?ry. July 1. TRANSACTIONS (Single Entky), SET XI. -* and H. A. Jones form a partnership for conducting a General : Dry Goods and Grocery business ; the firm will be styled and Gains and Losses will be shared equally. * & Jones, * invests, Cash^ $2,000 ; Store and Lot, $5,000 ; amount due him, on acct., by James Elliott, $1,000 ; by Thomas Nelson, $800 ; by John Morton, $500, and by R. A. Gorman, $700. H. A, Jones invests, Cash, $5,000 ; Mdse., valued $2,500 ; John Smith's note in his favor, drawn May 10 @ 3 mos. for $1,200, and a 60 days s^t. dft. drawn by Henry Adams on Willis & Morton favor of Jones, dated May 12, and accepted by Willis & Morton on the 27th May, for $1,300. Cr. aach partner ia D. B. for his Investment, and Dr. Elliott, Nelson, Morton and Gorman, as ia Set X. Enter Cash in C. B. and Note and Acceptance in Bill Reoei^ able Book. No interest is to be reckoned on the notes. 2. Bot. of Brown & Adams, on our note @ 20 days. Dry Goods, per Inv. No. 1, $250. NoD.B. entry. Enter note in B. Pay Book. Bot. of J. E. Bowman, for Cash, Groceries, per Inv. No. 2, $346.78. " Thos. French, « a Fire and Burglar Proof Safe, $250. 3. Deposited in Bank of B. N. America, Cash, $5,000. 6. Sold for Cash, to Lewis Watson, 50 bbls. Flour @ $6.5,0. Sold James Elliott, on acct., 5 bbls. Sugar, 320 + 325 + 322 + 318-1-327= 1,612 lbs. @ 10c. 6. Bot. of Hall & Jones, on acct.. Dry Goods, per Inv. No. 3, $728.14. Sold John Hamilton, on acct., 4 hhds. Sugar, 1,575 + 1,624 + 1,675 + 1,718 = 6,592 lbs. @ 9c. 7. Bot. of Brown & Adams, Mdse., per Inv. No. 4, $1,217.42. Gave in pay t., Cash, $300, Check No. 1 on Bank B. N. A. $550; bal. on acct. In D. B. Cr. B. & A. for their Inv. ; Dr. them for Cash and Check ; then Or. Bank and enter Cash in C. B. 8. Sold Henry A. Burns, on acct., 2 hhds. Molasses, 125 + 130 = 255 gals. @ 40c. 10. Retail Cash Sales this week, $475.19. 12. Paid Cash for Postage Stamps and Stationery, $5. 13. Bot. of J. E. Bowman, on our note ® 2 mos., Mdse., Inv. No. 5, $450.10. Enter note in D, B., no other entry required. 15. Sold J. P. Currie, on acct., 10 bbls. Apples ® $3.50 ; 20 bbls. Potatoes @ $1.25. Sold H. O. Chipman, on acct., 50 bbls. Flour, @ $6.25 ; 100 bags Salt @ $1.25. 17*. Reed, from James Elliott, on acct., his 10 days sgt. dft. on Chas. Conway, whioh Conway has this day accepted, $750. Cr. Elliott Charles Conway's ace. No. 3," and enter in Bill Book. No entry in D. B. for Conway, as you hold his ace, instead of himself personally, and should you enter in the B. B. and also Dr. Conway in the D. B. you would make your books show $750 more of Assets than you possess. Sold R. A. Gorman, on acct., 50 yards Brussels Carpeting ® $1.50 ; 100 yards. Silk @ $1.25. Deposited in Bank B. N. A., Cash, $1,000. Retail Sales for Cash this week, $578.14. ♦ Use your own name here. 9. 12. 13. 14. 16. 17. Transactions. 67 19. Gave Hall & Jones 1 mo. draft on Thomas Nelson for $500. Or. H. & J. and Cr. T. N. ; write draft, signing firm's name. 20. Paid for H. A. Jones, by Chk. No. 2, his note held.by Thomas French, $150. Dr. Jones and Cr. Bank. 21. Sold Thomas Nelson 6 hhds. Sugar, 1,126 + 1,274 + 1,014 + 1,341 +1,417 + 1,028= lbs. ® 9Jc., ; 4 hhds. Molasses, 120 + 115 + 112 -f- 106 = gals. @ 35c., . Reed, in payt., Cash, $150 ; his note @ 1 mo., $300; balance on acct. Dr. T. N. for Sales ; Cr. bim for Cash and Note ; enter Cash in C. B., and note in B. B. 23. Sbld John Hamilton 10 Chests Tea, 105+ 102 + 106 + 104 + 102 + 101 + 105+103 + 106 + 102= lbs. ® 45c., ; 5 hhds. Molasses,. 115 + 118 + 112 + 116 + 119 = gals. ® 36c. 24 26 28. 29. 30. 31. C. B. and B.B. ^$1.25. 9. 12. Donway, 13. Conway, as Conway in 14. )0 yards. 16. 17. He has endorsed to us, in part payt.. Brown & Adams' note, drawn in his. favor, dated May 25th ® 2 mos., $300 ; bal. on acct. Dr. H. for Sales ; Cr. for note, and enter note in B. B. Cash Retail Sales this week, $425.16. Paid note No. 1, due Brown & Adams, in Cash. Enter in C. B. and in remark column of B. B. This note matured yesterday (see B. B.), but it being Sunday, was not legally due till to-day (94). 27. Sold H. A. Burns, on acct., 10 chests Tea, averaging 104 lbs. each, ® 40c.; 50 bbls. Flour ® $5.75 ; 40 bbls. Corn Meal @ $4.50. Brown & Adams' note No. 5 fell due to-day, and we being indebted to them gave them the note on acct., taking their receipt for it. Dr. B. & A. in D. B. ; note in remark col. B. B. ; write receipt specifying the nature of the payment. Reed. Cash in payt. of Willis & Morton's Ace, No. 2, $1,300 ) Chas. Conway's " 3, 750) Bot. of Lewis Watson, on acct., Mdse., per Invoice No. 6, $1,575.25. Balance Cash Book. Cash on hand is $3,851.71. The Cash Book for tbe remainder of this Set is not given. Let the Student continue it in the form as given for this montl... Aug. 2. Reed, from John Morton, on acct. Cash, $350. 3. Reed, from R. A. Gorman, on acct., his note, No. 6, @ 3 mos., $500. 4. Gave Hall & Jones 60 days' draft on Hy. A. Burns, $200. 5. Sold J. P. Currie 50 bbls. Flour @ $6.10 ; 60 bbls. O. Meal ® $5.25. 7. Gave Lewis Watson, on acct, chk. No. 3, on Bank B. N. A., $500 ; 10 days*" draft on H. O. Chipman, $350 ; and Cash, $450. Cash Retail Sales this week, $375.08. Bot. of Hall & Jones, on acct., Mdse., per Invoice No. 7, $527.05. Reed, of James Elliott, on acct., Cash, $315.75. Deposited in Bank B. N. A., Cash, $3,500. Reed, from John Smith, Cash, in payt. of his Note, No. 1, $1,200. Sold H. O. Chipman 80 yards Bruss. Carpeting @ $1.30; 40 yards Silk ®- $2.40 ; 65 yards Ca. Tweed @ 85c. Gave Hall & Jones chk. No. 4, on Bank B. N. A., $400. Retail Cash Sales this week, $517.49. Bot. of Lewis Watson, on acct, Mdse., per Invoice No. 8, $927,28. Reed, from John Morton, on acct, Cash, $150. Deposited in Bank B. N. A., Cash, $1,500. 58 Single Entry. '' 19. Sold Jas. Elliott 5 Hf.-Chests Tea, 56 + 54 + 52 + 55 + 53 = lbs. @ 46c. 20. Pre-paid our note, No. 2, due J. E. Bowman, less 29 days' Disct. @ 7 %, $2.50, by Chk. No. 5, on ]^ank B. N. A. Remarks B. B. Cr. Bank In D. B. 21. Gave Lewis Watson, on acct., our note, No. 3 @ 4 mos., $500. Paid Hall & Jones, on acct., Cash, $100. Cash Retail Sales this week, $419.11. 24. Sold John Morton 1 Suit Ca. Tweed, $25.25 ; 1 Silk Umbrella, $4.50. Reed. Cash, in payt. of Thos. Nelson's note, No. 4, $300. c. b. and remarks b. b. 25. Accepted Lewis "Watson's 90 days' sgt. dft. favor of Walker & Smith, dated 20th inst., for $3U0. Dr. Watson and enter in B. P. B. 26. Reed, from H. O. Chipman on acct., Cash, $300. Sold B. C. Cogswell, on acct., 2 hhds. Sugar, 1,2164-1,354= lbs. ® 9tc. 28. Bot. of Hall & Jones, on acct., Mdse., per Inv. No. 9, $672.14. Sold Edward Eaton, on acct., 10 bbls. Potatoes @ $1.50 ; 20 bbls. Apples ® $2.50 ; 25 bbls. Flour @ $6.15. 30. Sold Thomas Nelson, on acct, 1 suit Ca. Tweed, $26.75; 20 yards Broadcloth ® $3.75 ; 25 yards Silk @ $1.75. Reed, from R. A. Gorman, Cash on acct., $250. 31. Paid Clerks 2 mos. wages: Henry Jones $120 and James Whiteside $110. C. B. only. Deposited in Bank B. N. A., Cash, $2,500. Cash sales since 21st inst., $725.14. Bai. «;. b, cash on hand is »474.28. Sept. 1. Bot. of Bell & Eraser, Mdse., per Inv. No. 10, $1,575.07. Gave in payt. 10 days sgt. dft. on Thomas Nelson, $250 ; 1 mo. dft. on John Hamilton, $375 ; Chk. No. 6 on Bank B. N. A., $450 ; Cash, $125 ; bal. on acct. 2. Sold J. A. Jenkins 10 boxes Raisins @ $2.50 ; 20 bbls. 0. Meal @ $4.75 ; 24 bbls. C. Meal @ $4.15. 4. Sold Charles Conway 5 H. C. Tea, 52 + 56 + 54 + 53 + 55= lbs. @ 37ic., ; 6 hhds. Molasses, 121 + 124 + 115 + 117 + 114 + 116 = 6. 7. S. gals. @ 38c.' 9. 10. Bot. of Brown & Adams Mdse., per Inv. No. 11, $1,296.09. Gave in payt. sgt. dft. on Henry A. Burns, $300 ; Cash, $240 ; our 3 mos. note, $480 ; bal. on acct. Thomas Nelson presents an order drawn on us in his favor by Hall & Jones, $300 ; Nelson being indebted to us, we allow the draft to apply on acct. Dr. H. & J. and Cr. T. N. J. P. Currie, having been unfortunate in business, compromises with his creditors by aying 50 % of his Liabilities. We receive his 2 mos.' note, dated 5th infe , in favor of Hall & Jon^s, and endorsed by them for one- half tlie sum he owes us; the bal. is lost. Cr. Currie for the note and 50 per cent. Disct to close his acct. Enter note in B. B. Sold R. A. Gorman 75 yards Cashmere ® 70c. ; 85 yards Merino @ $1.05 ; 46 yards Ca. Tweed fe) 64e. Loaned Thorn & McLean, on their note, at 1 mo., indorsed bv Brown & Adams, payable with Interest at 7 %, $4,500. Gave check l^o. 7 for the Amount. Cr. Bank and enter note in B. B. Paid B. C. Cogswell's order in fav. of R. A. Lee, in Mdse., $50.40. i>'- Cogsweu. TrAN8ACTION8. 59 C. B. only. 11, Reed. Cash from Thos. Nelson, $200 ; from John Morton, 8150 ; from John Hamilton, ;i?217.50 and from H. A. Burns, $225. 13. Paid John Yandall, for Carpenter work in Store, $15.76 ) " Wm. O'Brien, « Mason " " 10.42) 14. SoW H. O. Chipman 24 bbls. Flour ® $6.20. 15. Sold Edward Eaton 1 Suit Broadcloth, $30.50 ; Sold Chas. Conway 10 bbls. Potatoes © $1.25 ; 20 bags Salt @ $1.15. 17. Reed. Cash from J. A. Jenkins, $150 ; from B. C. Cogswell, $175. 18. Paid Cash, for Postage Stamps, $2.30 ; Cash Sales to date, $724.19. 20. Reed. Cash, from Edw'd Eaton, $125 ; J. A. Jenkins, $50 ; Chas. Conway, $215. 25. H. A. Jones has drawn for his private use. Cash, $400. (Student) " " " " 600. 27. Sold B. C. Cogswell, on aect., 2 hhds. Molasses, 118 + 120 = gals. @ 38c. 28. Sold J. A. Jenkins, on aect., 30 bbls. Flour @ $6.25. 29. Sold Hy. A. Burns, on aect., 2 H. C. Tea, ea. 54 lbs. @ 38c. 30. Paid Hy. Jones 1 mo. wages, $60 ; Jas. Whiteside, 1 mo. wages, $55 ; 3 raos. Gas Bill, $20.75. Cash Sales to date, $527.16. Deposited in Bank B. N. A., Cash, $1,500. Bal. C. B. ; Cash on hand is $203.90. After writing D. B., C. B., B. R. B., and B. P. B., post tho D. B., close Ledger and make out Balance Aect., and test correctness by Statement on page 62. Malce, also, D. B. entry, crediting each partner for hia half Net Gain, or as in Set4 X. and XI. Inventory: Unsold Mdse., valued $1,475.50; Store and Lot, $5,000; Safe, $250 ; Accrued interest on B. R. No. 8, 21 days, $18.13. raos. his note, one- 51.05 ; wn & or the SET XI. (Single Entry). Art. 58. As the form of Cash Book, given in this Set, differs from that previously given, it is written up for the first month. The Student will continue it in the same form for the remainder of the Set. This form of Cash Book is much more used than the one given in Set IX. 59. The Bills Receivable Book and Bills Payable Book are also introduced. In B. R. B. you will enter all notes and acceptances you receive ; and in B. P. B. all notes you give and bills you accept. The forms of the books are so simple, and the headings of columns so explicit, that the Student will at once comprehend their use, and will therefore require no specific directions. 60. In order to " prove the posting," a Day Book with double money columns (like the C. B. in Set IX.) may be used. All the Dr. amounts will be extended in the left-hand, and all Cr. amounts in the right-hand column. The foot'ugs of the two columns will be carried forward from page to page (the amounts at foot of one page to the top of the next), until the end of the Set. When the posting is completed, and Ledger balanced, the difference between the Dr. and Cr. Ledger balances should agree with the difference between the Dr. and Cr. columns of the Day Book. Should they not agree, you must, after satisfying yourself that the Ledger and Day Book additions are correct, go over the posting, cheek-marking with a pencil thus \/ on the double lines, on the left of the money columns, each entry in the Day Book and Ledger, until the error is discovered .60 Single Entry. Dr. CASH RECEIVED, 188 . July 1 To H. A. Jones, invested at date, f5,000 00 i( " (8tuder;> 2,000 00 5 " 50 bbls. Flour @ $6.60 (Lewis Watson), 326 00 10 " Retail Sales this week, 476 19 17 ii II II It 578 14 21 " Thomas Nelson, part payt. of Sales, 150 00 24 " Retail Sales this week, 425 16 29 " Bills Receivable, Willis & Morton, No. 2, 1,300 00 « " Do., Charles Conway, " 3, Balance brought down. 750 00 $11,003 49 $3,851 71 BILLS When ^0. Received. Drawer. In Whose Favor. Date. 188 . 188 . 1 July 1 John Smith, H. A. Jones, May 10 2 11 1 Henry Adams, H. A. Jones, on Willis & Morton, « 27 3 II 17 James Elliott, Selves, on Chas. Conway, July 17 4 II 21 Thos. Nelson, Selves, II 21 5 II 23 Brown & Adams, John Hamilton, May 25 6 Aug. 3 R. A. Gorman, Selves, Aug. 3 7 Sept. 8 J. P. Currie, Hall & Jones, Sept. ^ 6 8 (1 9 Thorn & McLean, Brown & Adams, In Whose Favor. Date. 1 2 3 4 6 188 . July II Aug. II Sept. 2 13 21 25 6 Selves, do. do. Lewis Watson, Selves, Brown & Adams, J. E. Bowman, Lewis Watson, Walker & Smith, Brown & Adams, 188 . July i< Aug. i< Sept. 2 13 21 20 6 00 00 5 00 5 19 8 14 >0 00 55 16 X) 00 )0 00 49 71 ATE. Y 10 27 7 17 21 Y 25 ?• 3 t. 5 9 1 y 2 13 g- 21 20 )t. 6 Cash and Bill Books, Set XI. CASH PAID. Or. 188 . July 2 By Mdse., J. E. Bowman, Invoice No. 2, $ 346 78 « " Fire and Burglar Proof Safe, Thos. French, 250 00 3 " Bank B. N. America, deposited. 5,000 00 7 " Brown & Adams, part payt. Invoice No. 4, 300 00 12 " Postage Stamps, 5 00 17 " Bank B. N. America, deposited. 1,000 00 26 " Bills Payable, Brown & Adams, No. 1, 250 00 81 " Balance on hand, 8,85 1 71 $11,003 49 RECEIVABLE. Time to Run. When Due. k AFTER AFTBB ^ , I.' .^ ;»> ^ !»> e>> ^. , , Amount. Bemabks. SIQHT. DATE. ^p2 1 ^ « ^ »? ^ 6^ 1 1 «? 188 . 3mos. 13 $1,SOO 00 Aug.l3,Iiecd.Casli, 60dys. 29 1,300 00 July 29, " do. lOdys. Imo. 2mo8. 3mo3. 2mos. Imo. 30 28 24 12 6 8 1 760 «00 300 500 340 4,500 00 OU 00 00 00 00 " SO, " do. Aug. 24, " do. July 28, Brown & Adams, on % PAYABLE, Time to Bx n. H H When Due. AFTER SIGHT. AF-t'ER DATE. •? 1 1 .^ 1 1 t ^ "^ ^ 1 1 Amount. Remarks. 90dys. 20dy8. 2 mo8. 4mos. Smos. 26 18 24 26 9 $250 450 500 300 480 00 10 00 00 00 188 . July 26, Paid Gash, Aug.20,Chk.No.5, $447.60, Dis, $2.50. 62 Single Entry. After transferring your Ledger Balances to the Balance Acct., the results should agree with the following Statement A. This Sheet Is given in a different form from that in Set X., to show the method of making out a Single Entry Balance Sheet when the Personal Acota. are too numerous to be shown on the same sheet with * the other Assets and Liabilities. & JONES, BALANCE SHEET, Sept. 30, 188 . {STATEMENT A.) Unsettled Ledoeb Balances. BALANCES SUE tJS. BALANCES WE OWE. James Elliott, Thos. Nelson, E. A. Gorman, Bank B. N. America, John Hamilton, Hy. A. Burns, " H. O. Chipman, B. C. Cogswell, Edward Eaton, J. A. Jenkins, Chas. Conway, $ 219 65 88 00 321 19 8,002 40 375 78 301 54 191 55 216 42 124 25 207 10 190 41 $10,238 34 John Morton, Hall & Jones, Brown & Adams, Lewis & Watson, Bell & Eraser, ASSETS. Dr. Ledger Balances, per Statement A, ., Cash on hand, per C. B Bills Receivable, per B. B., Accrued Interest, on do. (No. 8), Merchandise, per Inventory, Store and Lot, valued, i Safe, cost, ... . ... $10,238 34 203 90 6,340 00 18 13 1,475 50 5,000 00 250 00 $22,525 87 LIABILITIES. Cr. Ledger Balances, per Statement A., ... Bills Payable, per B. B Present Net Capital, $1,568 69 1,280 00 $2,848 69 $19,677 18 (Student) invested, " withdrew, " Net Investment, ... H. A. Jones invested, " withdrew, " Net investment. Joint Net Capital Invested, Net Gain, Each Partner's J Net Gain, FORMER CAPITAL. $10,000 00 600 00 $10,000 00 650 00 $9,400 00 9,450 00 $413 59 $18,850 00 $827 18 followinff Ing out a iieet witb B 20 427 343 402 25 33 51 53 07 KEVIEW OF SET XI. 1,568 69 87 69 Art. 68. What is the form of C. B. in this set 7 What is entered in Dr. page 7 What Cr. page ? Which side, If either, will be the greater 7 Why 7 With what should balance agree? How is the book balanced 7 59. What is the use of the Bill Books 7 What are entered in B. B. B. 7 In B. t. B. 7 How do you find when due? What do you enter under " Remarks " 7 How do you find the bills on hand? How the bills you owe? 60. How can you prove the posting in Single Entry.? Transactions : July 1. Which items are entered in D. B. ? What is done with the Notes on hand? 2. Why no D.B. entry 7 17. Why not Dr. Conway in D. B. 7 20. Does this Note appear in the B. B. 7 Why 7 26. Any D. B. entry 7 Why 7 When 1 aNote payable which matures on a holiday 7 28. Why a D. B. entry for this Note? Aug. 8. Any D. B. entry for this Note ? Why 7 4. What entries here? Why 7 25. Will you Cr. Walker A Smith 7 Why ? Sept. 1. WUl those Drafts be entered in your Bill Book? \7hy7 What is a Bill Payable? 7. Why Cr. Nelson? 8. Why Cr. Currie for 60 per cerft. Disct.? Balance Sheet and Books : How iloes this Sheet dififer from one in Set X. 7 What amount of Cash had the firm beginning business 7 Now? Whatamountin Bank beginning? Now? What amount in Bills had you beginning ? Now 7 What is the value of Assets shown in Ledger Ao> counts on closing? Of Liabilities? What ax» yoiir total Assets, closing? How found? What is your (firms) present Capital? How found 7 Joint Capital invested? How found 7 Net Gain? How found? How will you find each partner'fr Present Capital 7 (63) 64 Double Entry. SET XII. (Double Entry). Art. 61. As the Cash Book^ here given, differs from the forms given in Single Entry, it is written for the entire Set. You will observe that the space between the date and money columns is divided into two parts. The first is for Ledger Titles: i. e., on the Received side, the Account that produced Cash, or w?iich should be credited for Cash ; and on the Disbursed side, the Account that c ost Cash, or which should be debited for Cash. The answer to the question : " What account produced," or " What account coat " Cash, in this case, will always deter- mine what the Ledger Title should be. The second part is for items, or any ■explanations that may be needed to make the entry a complete record of the transaction. This form of Cash Book is not essential, except the Cash Book is to be used as an original entry book, or is to be journalized, or posted directly to the Ledger, aa is frequently done. It is, however, the best form in any case, and is suitable for Single as well as Double Entry. Observe that bills, &c., must be entered for their face value, and separate entries made for Interest or Discount ; the simi or difference will then be the Cash r3ceived or paid. See entries fr; Oct. 13th, Nov. 8th, 16th, 22nd, and Dec. 7th, : TRANSACTIONS. Oct. 1. & H. A. Jones continue business with Assets and Liabilities as shown by Single Entry Bah ^e Sheet page 62. As this Set is a continuation of Set XI., Single Entry, and it is Intended to continue the use of the Single Entry Ledger, by posting into the accounts already opened in it, the following Day Book entry will be required to change the books from Single to Double Entry : ■Cash, Dr. Bills Receivable Dr. Interest, Dr. Mdse., Dr. Store and Furniture, Dr. Bills Payable, Or. e 203 90 5,340 00 IS 13 1,476 50 6,260 00 After these entries are posted, the Assets and Liabilities will all liti represented iu the Ledger, and the books can be continued by the Double Entry method. If a new Ledger were to be used, you would either transfer all the accounts from the S. E. Balance Account to the New Ledger, or open your books with a Statement of your Assets and Liabilities, as in the preceding Sets. 1,280 00 "■To change books from Single to Double Entry. 2. Bot. of Brown & Adams, on acct., Mdse., per In v. No. 12, $1,250. 4. Reed, from Lewis Watson, for sale on his acct., 10 hhds. Sugar ; paid Freight in Cash, $120. Dr. L. Watson's Const., $120. 6. Sold J. E. Sprague, on his 1 mo. note (No. 9), 5 hhds. Sugar, 6,275 lbs. (L. W. Const.) @ 9c. . 3 hhds. Molasses (own goods), 354 gals. @ 40c. 7. Bot. of Joel Cuggin, Mdse., per Inv. No. 13, $2,576.14. Gave in payt. 3 hhds. Sugar (L. W. Const.), 4,224 lbs. @ 10c. ; check No. 8 on Bank'B. N. A. for balance. 9. Shipped White & West, Boston, for sale on our acct., 500 bush. Potatoes @ 30c. ; 450 bbls. Apples @ $3. Paid Insurance in Cash, $15. Dr. Sbpt. to Boston for full Cost. *To change from Double to Single Entry, the reverse entry of this would be required, viz. all the open accts. which were not to be continued in Single Entry. one closing Transactions. 65 (ingle tween ,edger which ,t cost What deter- )r any of the )e used Ledger, ible for separate he Cash c. 7th. labilities ! use of the Book entry d Liabilities idthe>)oo'»-8 :y method, rould either E. Balance your books Liabilities, Freight lbs. (L. 40c. payt. 3 I Bank's. atatoes @ one olouHg Took out Policy of Insurance of Store and Contents, $10,000, for 1 year @ 2 %. Paid premium, per check No. 9. Ab thli policy is intended to cover all goods in Store ^Consignments, Ac), Dr. Insurance Aoot., and Cr. same Acot. when charging other parties for Insurance. If it covered your own goods only, you would Dr. Mdse. 11. Reed, from Jas. Elliott, Cash, SlOO; from R. A. Gorman, 8150; from Chce. Conway, $50. 13. Gave Brown & Adams a 1 rao. sight draft on John Hamilton, $200 ; a 2 mos. draft on H. A. Burns, $180 ; and check No. 10, $500. Reed, from Thorn & McLean, Cash, in payt. of their note. No. 8, $4,500 ; also, 1 month's Interest, $26.25. 15. Gave Hall & Jones a 30 days' draft on White & West, $300. 16. Sold Thos. Nelson, on acct., 2 hhds. Sugar (L. W. Const.), 2,680 lbs. @ 10c. Closed L. Watson's Const. Our charges are : Storage, $10 ; Insurance, $8 ; Commission, 2 J % on Sales, $31.38; Net Proceeds remitted by 1 mo. drafb on White & West, $1,085.77. 19. Stored for H. O. Chipman, 500 bbls. Flour @ 5c. per bbl. Storage, and 2c. per bbl. Insurance, per month. This is a memo. No charges will be made till the balance is delivered, or an acot. given. Sold John Morton, on acct., 100 bbls. Flour @ $6.30. Sold H. O. Chipman, on acct., 5 bbls. Sugar, 305 + 308 + 304 + 307 + 316 = lbs. @ lie. 22. Reed, from White & West, an Acct. Sales of Shpt. to Boston. Our N. P., due Nov. 20th, are $1,670.10. 23. Reed, from Lewis Watson, his 2nd Const., 20 hhds. Molasses. Paid freight, per check No. 11, $115. As his flrst Const, is closed, you can post under the old acot. 25. Accepted Bell & Fraser's 2 mos. sight draft, favor Moses Harris, $300. 26. Having been appointed agents of the Ship Atlantic, we have purchased \ of her for $6,000, giving in payt. 10 hhds. Molasses (L. W. Const.), 1,156 gals. @ 45c. ; 10 chests Tea (own), 1,054 lbs. @ 40c. ; Cash, $3,000; check No. 12 for balance. Bt.'smp Atlantic. 27. Paid Cash for disbursements of Ship Atlantic, $750, and for 3 mos. Insurance @ 2 %, on $24,000, $480. Dr. Ship Atlantic and Owners, as these advances were paid on other owners, as well as on your own acct., and Ship's acct. before opened wns for your own share only. (The ownership is J. Magee 3^ Wm. Blng 34, ourselves J^), 29. Collected for White & West their draft on Ring & Allen, $2,000. Placed amt., less i % Com., to Cr. of White & West. 30 "Rot. at auction 10 shares Bank of N. B. Stock @ $135. Paid Cash. 1- :. Bank N. B. Stock Acct. Should you make deposits, &c., in same bank, you would open a separate acct. (Bank N. B. Acct.) Nov. 1. Stored for H. O. Chipman, 400 more bbls. Flour. 2. Sold for Cash, 10 hhds. (bal. L. W. Const.), 1,184 gals. @ 43c. Closed L. Watson's Const. Charges : Storage $5 ; Insurance $3 ; Com. 2^ %. Net Proceeds due L. Watson . £ r I B6 DouBtE Entry. 2. White & West draw on m for 81,000, at 00 days' sight, in favor of Titus & Welsh. We deduct 63 days' disct. and pay the proceeds in Cash. 5. Gave L. Watson 30 days' sight drafts on Jas. Elliott, $100 ; Thos. Nelson, $250 ; John Morton, $350 ; H. A. Burns, $100 ; and H. O. Chipmau, $200. 6. Delivered to J. A. Cook", per H. O. Chipman's order, 250 bbls. Flour. Reed. Cash in payt. of R. O. Gorman's note. No. 6, 8500. 8. J. P. Currie's note, No. 7, falls due to day, and he being unable to pay it in full, we renew for ope-half. Reed, his 60 days's note, 6170, and Cash for bal, 8170, and 63 days' disct. on renewal, 82.05. Dr. Cash and B. K. Cr. B*. R., and Interest and Disoount Acot. 9. Sold Jas. Elliott, on acct., 40 yds. Carpeting @ 81.50 ; 50 yds. Silk @ 82.40. 10. Deposited in Bank B. N. A. Cash, 81,000. 12. Delivered H. 0. Chipman 650 (balance) bbls. Flour. Multiply the number of bbls. hj the days they are In Store, and divide the sum of the products by 30 to get the avorago number (497 bbls.) in for 1 month. Dr. Chipman and Gr. Storage Acct. and Insurance Acct. When a buKlness Is made of Storing, a Storage Book should bo used, in which a space should bo reserved for each person for whom you store goods, and the amounis only carried to the Day Book, when the acct. la made out. 13. Paid John Aikins Cash for repairs on Store, $120. Dr. store and Furniture Acct. 15. Reed. Cash for freight of Ship Atlantic, 84,500. cr. ship Atiantie and owners. 16. Reed. payt. of J. E. Sprague's note, No. 9, 8706.35, and 7 days' Int. in Cash. 18. Stored for H. O. Chipman 500 bbls. Flour, same terms as last lot. • 19. Reed, from White & West, for sale on their acct., 100 C. Tea. Paid Cash for Freight, 820 ; for Duties, 8750. 20. Bot. of Hendricks & Co. 1,500 bbls. Apples @ $3. Gave in payt. 20 C. White & West's Tea, 2,104 lbs. @ 45c. ; 10 hhds. Sugar (own) 14,506 lbs. @ 10c. ; Chk. No. 13 for bal. Shipped the Apples to Vroom & Co., London, Eng., for sale on our acct. Paid fgt. per str. Quebec by Chk. No. 14, $1,200. Dr- Shpt. to London for lUU cost, and Cr. payts. 22. Exchanged notes with Smith & Troop, each note drawn at 3 mos. for $2,000. Disctd. their note at Bank of Montreal, receiving Cash, less 95 days' Disct. Enter both notes in B. B., and the one disctd. in remarks of B. B. B., and Dr. Cash, and Int. and Disct. Acct., and Cr. B. P. To find time for which note is disctd., count number of days between day of disct. and last day of grace. Should last day of grace fall on Sunday, or legal holiday, an additional day would be counted (94). 24. Sold J. & P. Coats, for Cash, 40 C. White & West's Tea, 4,212 lbs. @ 44c. 26. Paid note. No. 4, due Walker & Smith, in Cash, 8300. 27. Stored for H. O. Chipman 600 bbls. Flour. 29. Reed, from John Morton, on acct., Brown & Adams' dft. on us at 1 mo. in his favor, 8250. As Morton owes you, Gr. him for dft., less 1 mo. 3 dys. disct., giving him your receipt. Bot. of Hall & Jones, on acct., Mdse., per Inv. No. 14, $2,648.12. 30. Sold R. A. Gorman, on acct., 10 pes. Ca. Tweed, 560 yards @ 80c. Pf id note No. 3, due L. Watson, and 4 days' interest in Cash. Delivered per H. O. Chipman's order 300 bbls. Flour. 22. 25. 28. 29. 30. 31. Transactions. 67 A 20 C. 06 tt)9. &, Co., Chk. $2,000. s' Disct. @44c. 1 mo. in Dec. 1. Deposited in Bk. B. N. America, Cash, $1,500. Paid Cash for disbursements of sliip Atlantic^ $950. 8. Reed, from John Morton, Cash in full of acct. 4. Delivered H. 0. Chipman 250 bbls. Flour. 7. B. C. Cogswell has compromised with his creditors, paying 75c. on the $1. We receive the 75 % in Cash. Dr. Cuh and Lom A Gain Aoct. Cr. Cogiwell for Aill amount of hla aoct 8. Sold Edward Eaton 20 C. Tea (W. & W. const.), 2,093 lbs. @ 44Jc. ; 50 bbls. Flour (own) @ $6.10. Reed, in payt. 10 days sgt. dft. on Hall & Jones, accepted, $1,000. Bal. on acct. 10. Paid Brown & Adams' note, No. 5, in Cash. 11. Bot. of Bell & Eraser, Mdse., per Inv. No. 16, $3,514.20. Gave in payt. 1 mo. dft. on J. A. Jenkins for bal. of his acct. ; 60 days' dft. on Edward Eaton, $300 ; Cash, $1,500 ; bal. on acct. 13. Sold, for Cash, 56 yards Brussels Carpeting @ $1.50. 14. Sold John Hamilton the remainder of White & West's consgt., 20 C. Tea, 2,114 lbs. @ 45c., . Reed, in payt. 5 Shares Bank New Brunswick Stock @ $135.50 ; bal. on acct. Closed White & West's consgt. Charges : Storage, 8c. per chest per mo., $2.96 ; Insurance, 5c. per chest per mo., $1.85 ; Commission, 2i % on Sales, $117.07. Net Proceeds due White & West, $3,790.88. 16. Loaned Titus & Musgrove on their note, No. 13, drawn payable in 3 mos. with Interest at 7 %, $3,000, Cash. 17. Gave Hall & Jones, on acct., J. P. Currie's note, No. 10, $170 ; Disct. off, 24 days, . 20. Reed. Cash for freight ship Atlantic, $3,800. 21. Hall & Jones' note, No. 12, falling due to-day, and we being in their debt, we give them the note on acct. 22. Settled with owners of ship Atlantic : Receipts of freight have been $8,300 ; disbursements, $2,180 ; our 2i % Commission on freight and disbursements, $262 ; J. Magee's i Proceeds, paid in Cash, $2,929; W. Ring's i Proceeds, paid in Cash, $1,464.50 ; our i Proceeds, $1,464.50. Dr. ship Atlantic and owners to close acct. ; Cr. Cash, Com., and ship AtlanHe for amt. earned for us. 25. Delivered H, O. Chipman bal. of his Flour in store (550 bbls). Make out bill and Dr. Chipman and Cr. Storage and Insurance. 28. Paid note No. 6 in Cash, $300. 29. Reed, from James Elliott Cash in full of acct., $199.65. Thos. Nelson " « 106.05. Hy. A. Burns " « 21.54. 30. Reed, from Vroom & Co., for Net Proceeds of Shpt. to London, a Bill of Exchange for £1,250 9s. 6d. Sold the Bill at Bank New Brunswick @ $4.84, receiving Gash, $6,062.30. Dividend for half year on 15 shares Bank N. B. Stock % J 68 Double Entry. I t Inventories : Bank N. B. Stock, 15 shares @ $134 (Market value) ; MJse.,, per Inventory Book, $6,846.17 ; Store and Furniture, valued at $5,200 ;. Insurance Acct., 9 mos. unexpired Policy, paid in advance, $150 ; Ship Atlantic, our t, $6,500. Interest and Discount Acct., accrued Interest (16 days), on Titus & ") Musgrove note, $8.75; Discount for unexpired time on Bills Pay- V $30.23> able, No. 7 ($2.-000 Tor 56 days), $21.48, 3 The foregoing Set, if properly worked out, will produce the following Trial Balance: • ■• $ 7>9 19 ]0,'j02 40 1,469 22 649 68 1,130 00 448 38 6,370 00 1,000 00 360 63 300 00 190 41 1,515 00 200 00 2,670 10 "6,000 66 2,027 50 27,732 66 10,216 35 1,580 00 55 93 5,700 00 11,463 96 54 11 42 $91,405 Student, Stock, H. A. Jones, R. A. Gorman, Bank B; N. America, Hall & Jones, J. Hamilton, Brown & Adams, H. O. Chipman, Store and Furniture \cct., Lewis Watson, Edw'd Eaton. Bell & Fraser, Chas. Conway Shpt. to Boston, Insurance, White & West, Storage; Commission, Ship Atlantic, Bank N. B. Stock, Cash, Bills Receivable, Bills Payable interest and Discount, ... Shpt. to London, Mase., Loss & Gain, $9,813 9,863 150 8,329 3,075 200 1,593 200 1,283 300 1,882 60 1.670 37 7,171 80 441 1,464 60 21,617 7,216 3,580 42 6,052 6,330 $91,405 59 6» 00 54 45 00 51 00 12 00 17 OO 10 83 65 41 18 50 00 OO 35 00 9a 30 20 42 The Net Gain is $2,529.36 ; Student's Net Capital, $11,078.26 ; H. A. Jones* Net Capital, $11,128.27. ,813 69 ,863 59^ 150 00 ,329 54 ,075 45 200 00 ,593 51 200 oa ,2'83 12 300 00 111 1,464 60 60 00 1,617 00 ^216 35 i,580 00 42 9a S,052 30 5,330 20 • •• 1,405 42 I 70 Double Entry. Dr. CASH RECEIVED. if , Datx. Leoobb Titt.k. Paraphbasb. L.P. 1 AxoxrsT, 188 . Oct. 1 Balance on liand, % 203 9a 11 James, Elliott, On acct., 100 00 0. Feb. 1. Paid Magee & Co. in full, pr Chk. Paid Hy. Bowes, Cash, $400 ; Sarah Bowes, $250 ; Mrs. John Ring, $350. 2. Reed, for freight ot Barque Sylvia, Cash, $2,800. 3. Reed, from K. E. Clarke, 250 bbls. Flour. Paid Gas bill to Ist inst., $18.50, Ca.3h. 4. H. A. Joyce has failed. His note, $500, due J. Bowes' Estate, und the amt. ($230) he owes me are lost. Dr. J. B. Estate, and Loss A Oaiu ; Cr. B, R., and K.A.J. T ! i : .; 74 Double Entry. 6. Sold 10 Shares Bank of N. B. Stock @ 135.60, Cash. Sold J. E. Smithers, on acct., 200 bbls. Flour (G. & W. Const.), @ $6.20. 7. Sold Barque Sylvia for Cash, $32,000. Del'd. H. E. Clarke 50 bbls. Flour. 8. Settled with owners of Barque Sylvia, paying them the amts. due them in Cash. Total receipts, 834,800; expenditure, $650; my 2% Com., $709, leaving to the Cr. of acct., $33,441. Of this, my fj is $10,450.31 ; Kay & Burgess' •Jf $8,360.26; E. N. McKay's fj $14,630.44. Dr. Barque Sylvia and Owners to close acct. ; Cr. Com., Cash, and Barque Sylvia. 9. Reed, from Gates & Page, their 30 dys. note for net proceeds of Shpt. to Bos- ton, $2,356.45. Deposited in Bank, Cash, $15,000. 10. John Bowes, Jr., takes the Farm and Buildings belonging to his father's es- tate at the appraised valuation, $3,640. He pays Cash, $2,500 ; the bal. to be settled when the Estate acct. is closed. 11. The following amts., due J. Bowes' Estate, of which 1 had no knowledge Jan. 12th, have been ascertained and collected : due by King & Coy, $50.18 ; J. P. Burk, $186.12 ; S. E. Bray, $317.42. The following amts., due by the Estate, have also been proved, and paid in Cash : Bingay & Smith, $59.15 ; P. O. Jay. $17.40. 12. Delivered H. E. Clarke, 100 bbls. Flour. Paid, by Chk., note due Feb. 23 by Estate of J. Bowes, less 11 days Disct., 53c. cr. the Estate for the Diset. 14. Having paid all the Liabilities of J. Bowes' Estate and disposed of all the Assets, I now find the present value of the Estate, and amt. due each heir, reserving $100 for my fee as Administrator. Close Live Stock Acct., Farm Implements, and Bank of N. B. Stock Into J . Bowes' Estate Acct., after w hicb make entry, transferring one-fifth the bal. of the Estate Acct. to each heir's acct. 16. Reed, from J. Bowes, Jr., Cash, $42.26, in full, and paid each of the remain- ing heirs the bal. due them, per Chks. on Bk. of Montreal (83,990.96 in all). 16. Reed, from H. E. Clarke, 500 bbls. Flour. Sold A. B. Myers, on acct., 100 Ch. Tea (W. & Co. Const.), 10,204 lbs., @ 43c. 17. Paid Cash for Hay and Oats (Dray Acct.), $15. 18. Purchased for Wise & Co., pr Chk., and remitted them on acct., draft on New York, $4,000, @ i % prem. Dr. W. & Co. for the full cost, as you owe them, payable at your own place of business. If the debt were payable in N. Y., you would have to pay the premium. 21. Sold 8. E. Ring 200 bbls. Flour (G. & W. Const.), @ $6.25 ; reed, in payt., 5 Shares Bank N. B. Stock @ $135 ; bal. on acct. 23. Bot. of Nelson & Arnold, on acct., Mdse., $1,217.05. 25. Pre-paid note No. 2, due Ray mmmiffmm Day Book (Form I). 79 188 . Jan. 19 21 28 ii 29. 30 H. Moore'a consgt., to close %, To Storage, Commission, 2J % on Sales, H. Moore & Co., N. P. per % Sales, H. Moore & Co., on %, To Brig America, j sold, Mdse., InvB. Nos. 3 and 4, To A. C. Field, on %, H. Moore & Co., on %, 8. Kerr (Stock), for own use, Student (Stock), " " To Bank N. Scotia, Chks. Nos. , H. Moore & Co., on %, To J. P. Hayes, 20 days sgt. dft., S. E. Payson, i mo. " A. C. Field, dft. favor M. E. Humphrey, , To Bills Pay., Acceptance No. — , 3 mos.. $2,492 4,500 4,153 600 500 250 250 60 00 26 00 00 00 00 $ 5 63 2,423 4,500 2,278 1,875 1,100 150 100 250 00 76 76 00 14 12 00 00 00 00 T IMAGE EVALUATION TEST TARGET (MT-3) / O // <;^% .^4? 1.0 I.I 1.25 !f?i^ 2.5 •~ i« mil 2.2 1 1^ Its 14 1.4 2.0 1.8 1.6 V] <^ /a n, ^M. ^. '''- ■ff/. > > ^^^ w ^ sr jw* ^ '^ O / i^ i!^ Photographic Sciences Corporation V s ,v L1>' \\ "% V '^>^ c^ "^ 23 WEST MAIN STREET WEBSTER, N.Y. V4S80 (716) 872-4503 ">" 80 Double Entry. I Db. CASH RECEIVED (Fobm I). D/'-^. 1 .KPOBB Titles. Items. L.P. MOSK. SUSDSIES. 188 . Jan. 1 2 S. Kerr's Stock, Mdse., Invested at date, 100 bbls. Flour @ $6.25 (S, E. Payson), 25 bbls. C. Meal, $14.50, $625 112 00 50 ^4,000 00 6 W. H. Barnum, J. P. Hayes, On acct., « « 500 600 00 00 10 17 Mdse., H.Moore's Const., Mdse., Per Cash Sales B., 200 bbls. @ $6.30 (J. Brown), Per C. S. B., 728 574 16 10 1,260 00 19 Brig America, Fgt., Havana to N. York, 1,150 00 22 Commission, Col. draft for Smith & ■t 23 Storage, Curry, ' Jones & Shand, 500 bbls., 20 dys. @, 6c. per mo., 5 20 00 00 24 H. P. Hayes, W. H. Barnum, S. E. Payson, J. Thompson, On acct., « « 600 400 350 125 00 00 00 00 Mdse., Per C. S. B., 529 75 , B 26 Bills Receivable, J. Smith, No. 1, > 422 50 B 27 Shpt. to Boston, N. P., Smith & Curry, 724 18 B 31 Mdse., Per C. S. B., Mdse., Cr., Cash, Dr., Balance, 529 16 67 3,098 B $8,09 S 67 B' ' $13,155 36 $669 85 The " Ledger Page " column is used only when the Cash Book is kept as a book of original entry, and posted directly to the Ledger. To post the Cash Book, credit each acct. in the Ledger Title Column on the Dr. side " By Cash," and debit Cash *.' To Sundries " for the amount received ($13,155.35) during the month. Cash Book (Foem I). CASH PAID (FoBM I). 81 Ce. Date. Lbdoeb Titles. 188 , Jan. 7 8 9 12 20 30 31 Bank N. Scotm, Mdse., A. 0. Field, H. Moore ACo.'s Const., Expense, A. C. Field, Expense, Do. Do. Bank N. Scotia, Itehs. L.P, Deposited, Insurance and Policy, On%, Freight, Truckage, Blank Bvoks, On%, Clerkfl, Gas Bill, Store Bent, Deposited, Expense, Dr., Cash, Cr., Balance, £XPEN8E. SmrDBiEs. $24 120 8 20 00 00 00 00 $172 00 *$6,000 81 600 67 676 6,000 172 00 00 00 50 00 $12,485 669 00 00 60 85 $13,155 35 Debit each acct. on the Cr. side, " To Cash," and credit Cash, « By Sundries." for the amount (812,485.50) paid during the month. Do not post the amounts in the Mdse. and Expense Columns till the end of the month (or when the book is balanced), when they will be posted in sums total. ! --+- *82 Double Entry. SIX COLUMN DAY BOOK (Form II). Date. Debits. Jan. «. « (I « « Cash, Mdse., W. H. Barnum, J. P. Hayes, Bank Nova Scotia, Brig Ameriea, Cash, Bills Beceivable, 10 12 18 14 15 17 (( 19 Itbms. Mdse., Cash, do., Bank Nova Scotia, Mdse., do., S. E. Payson, J. Thompson, A. C. Field, Cash, H. Mooi«'s Const,, Bills Receivable, Shpt. to Boston, Brig America, Cash, do., A. C. Field, Cash, H. Moore & Co.'s Const., 20 Expense, 21 H. Moore & Co., 22 Cash, 8. Kerr and begin business with property and accounts owing them, as here indicated. 8. E. Payson, 109 bbls. Flour ® «6.25, J625; 25 bbls. C. Meal @ |4.60, $112.60. J. Smith, 20 days, 40 bbls. O. Meal, »5.25, $210 ; 10 bblfl. Pork, »18.50, $185 ; 2 Mats Coffee, 100 lbs., 27Jio., «27.50. Invoice No. 1, on acct. On acct. Deposited. Insurance, 2 per cent, on 94,000, «80 ; Policy, »1. InTCtice No. 2. part payment. No. 1, 2 mos. . Bal. on acct. On acct., 100 bbls. Flour @ «6.10. «' 60 « Meal " 4J50. j « 80 " Pork " 18.26. Retail Sales to date. Freight and Truckage, 400 bbls. Flour. J.P.Hayes, No. 2. 60 bbls. Flour @ $6.25. 100 " " 6.50. Smith & Curry, on our acct., 100 bbls. Shad @ «6.60. Disboisementa. (J. Brown), 200 bbls. Flour ® $6.80. Retail Sales this week. On acct., 100 bbls. (bal.) Flour @ $6.40. Freight, from Havana to New York. To dose acct. 2% per cent, on Sales. their Net Proceeds. Blank Books, % sold them on acct. , Draft, nfiOO, on J. B. Chlpman; collected for Smith A Curry and re- mitted them, less 6 per cent, com., Fbnoard, mmmmmm Double Entry. 83 SIX COLUMN DAY BOOK (Form II). Cbeditb. 8. Kerr's Stock, Student's Stock, Mdse,, do., H. Moore & Co., V/. H. Barnum, J. P. Hajes, Cash, do., do., Bills Payable, A. C. Field, Mdse., do., do., do., Cash, Mdse., Moore's Const., Mdse., Bank Nova Scotia, H. Moore's Const, Mdse., H. Moore & Co.'s Const., Brig Americii, Storage, Commission, H. Moore «& Co., Cash, BrigAmeriea, Commission, 6,871 1 60 1129,831 Cb. Sumo. Cb. KosB. Cb. Cash. I 9,700 9,600 $ \f^ 1,278 600 600 00 00 60 00 00 787 422 400 612 00 10 60 60 660 600 1,260 640 1,160 6 63 2.428 4,600 6 83,688 00 00 00 00 00 00 76 76 610 225 647 728 312 660 674 6,000 81 600 00 00 60 16 60 00 10 00 00 00 67 60 00 00 24 10114,807 1 26 II 6,762 00 I 00 ■ilHtfillliMHIIMMIIIIil 84 DATS. Debits. Jan. 23 24 26 27 28 CI u 29 30 31 i( Cash, do., do., do., do., do., do., do., Mdse., do., S. Kerr (Stock), Student (Stock), H. Moore & Co., A. C. Field, Expense, Cash, Bank Nova Scotia, Double Entry. ITKHS. • Amonnts from folio 1, Jones A Shand, 20 days, 600 bbU. Flour ® 6c. per month. Onaoct C( » il M « U Betail Sales to date. No. 1, J. Smith. Net Proceeds, Smith A Curry, Acct. Sales, No. 1. Invoice No. 8, on acct. « "4 " For own use, — check No. 2. II II « « •• 8. On acct. — 20 days' sight draft. 1 mo. " " Acct. his 3 moB. draft, &TOr M. E. Humphrey. Paid on acct. Clerks to date. »120; Gas bill, $8; Rentlof Store, Be; ail Sales to date. Deposited. " DB. Cash. d,5d4 20 400 600 850 126 00 629 76 422 60 724 18 76 00 00 00 00 629 16 Db. Mdsx. 6,871 60 2,278 1,875 14 12 10,024 13,155 35 Six Column Day Book. 85 Db. SCNO, $ If- 29,881 60 600 600 260 825 48 6,000 00 00 00 00 00 87,154 10,024 13,165 1 35 00 50 86 60,334 j 71 Cbxoits, Storage, W. H. Bamum, J. P. Hayea, S. E. Payson, J. Thompson, Mdse., Bills Beceivable, Sbpt. to Boston, A. C. Field, H. Moore & Co., Bank Nova Scotia, do., J. P. Hayes, S. E. Payson, Bills Payable, Cash, do., Mdse., Cash, Mdse., Cash, Negotiable Paper* Art. 65. Negotiable Paper is that which may be freely transferred from one person to another, so as to give the holder the right of collecting it wiAout beinrsubject to any set-offi or defenses ; in other words, to be used as inc«oy « generally used, and to represent and take the place of loney m business transactions. • a-o t. /o\ 66. The principal classes of Negotiable Paper are (1) Bills of Exchange, 2) Promissory Notes, (3) Bank Notes, (4) Checks on Banks. (5) Coupon Bonds. (6) Certificates of Deposit. Form I. (Inxand Bat. of Exchange). ^'^ W. BROWN. Halifax. fMmd. Form II. ^° W. BROWN. Halifax. 67. On examining the above drafts or bills, you will observe certain features or elements which must exist in all negotiable paper, viz. : — 1. PARTIES - These are the (1) drawer, J. Smith ; (2) the drawee. W. Brown, and (3) the payee, J. Jones. , „ , -am 2. (Consideration, indicated by the words value received. 3 Payable in Money, indicated by the word " dollars. 4. Payabm Absolutely — there is no contingency mentioned. ^ 5. Negotiable Words, "or order"; "or bearer." , „ 6. Time, " Sixty days after sight " ; " one month after date. 7 Amottnt. One Hundred Dollars. If either of these elements is absent, the paper is no longer negotiable, i. e., freely transferable. We will now examine them more closely. ■ *in the preparation of thlB paper the author haa oomulted several authoritieB. but 1- eepeoiaUf Indebted to C. TowNSEND's Taluable work on Ck)mmercial Law. (86) I Negotiable Paper. BT I. PARTIES. 68. (1). Original Parties are the ones whose names first appear upon nego- tiable paper. In the examples above, J. Smith impliedly claims that W. Brown owes him. If Brown " accepts " the bill, he admits Smith's claim, and agrees to pay Jones instead of Smith. "Accepting " is agreeing to pay the bill as requested^ and is signified by the drawee writing the word " accepted," and his signature across the face of the bill, after which he is called the aceepior. If the bill is drawn " after sight " (Form I.), the acceptor must take care to add the date of his acceptance ; if " after date " (Form II.), this is not essential, though it is just as well to write the date in all cases. 69. (2). Subsequent Parties. If the negotiable words " ot bearer " are used (Form II.), the bill is transferable by delivery, and the payee can sell and transfer it without any formality or further responsibility, provided the buyer is willing to take it so. But if the payee wishes to transfer to, say, H. Wood, Wood may decline to take it without Jones' indorsement. If Jones does indorse it, he is now an indorser, and as such is conditionally liable for the payment of the paper ; hence, he has assumed a new relation to it, and is a subsequent party. The same would be true of Wood, or any other parties who might indorse the bill ; they would be subsequent parties and conditionally liable. (See Indorsements, 86). 70. If the words " or order " are used (Form I.) it is tran8f».rable (86) by indorsement and delivery. If Jones wishes to negotiate the bill he must indorse it, in order to give the indorsee power to collect it. 71. The student will note particularly two facts : — 1. The extent to which the use of negotiable paper facilitates commercial transactions. Either of the above bills might pass through dozens of hands, and pay thousands of dollars of debts, before being presented to the drawee for either acceptance or payment. 2. The more the bill circulates the greater the certainty of payment, as each Indorser is a new security. II. CONSIDERATION. 73. Consideration is the inducement which influences a person to enter into an agreement. If I contract to build a house for you, it is in consideration of your paying me a sum agreed upon. If I accept your draft upon me, it is in consider- ation of the payment of the draft cancelling some claim you have against me. 73. Negotiable paper not supported by a consideration is of no value as between (68) the original parties. " Value received " are the words generally used to express consideration ; but if they are omitted, consideration will still be implied. The drawer, by drawing the paper with negotiable words, shows his intention to permit the paper to pass into the hands of an innocent holder — one who is not aware of want of consideration, and who must not therefore be victimized through the drawer's default. I to in. PAYABLE IN MONEY. 74. The paper must be payable in money. A note or bill payable in goods or chattels is not negotiable. "88 Negotiable Paper. IV. PAYABLE ABSOLUTELY. 75. Negotiability is destroyed by the insertion of any event not certain of fulfilment. Xho insertion, however, of a condition sure to happen is admissible. For instance, a bill or note payable thirty days after a certain party's death would be negotiable. V. NEGOTIABLE WORDS. 76. The negotiable words used are " or order " and " or bearer." If paper is drawn payable to payee or bearer (Form II.) the payee can transfer it by delivery (69) without indorsement, and the holder can sue for it in his own name. The same will be the case if it is drawn payable to bearer without naming any payee. When the paper is made payable to payee, or order, (Form I.) it cannot be negotiated without the payee's indorsement. By indorsing, he orders the sum mentioned to be paid to the indorsee. VI. TIME. 77. Time of making is indicated by the date of the paper, and time of maturity may be expressed or implied. The date is necessary : 1. To fix time from which to compute interest. 2. To fix time when it would be barred by Statutes of Limitations, — old English statutes enacting that all claims, except for judgments and contracts under seal, must be sued within six years from the time when action might have commenced, and not after. When the date is omitted, evidence will be allowed as to when made and delivered. When time of payment is not specified, the law presumes it is payable immediately. The Statutes of Limitations begin to count against a demand note from day of date. VII. AMOUNT. 78. The amount must be for a fixed definite sum. It should be written out in full in the body of the instrument, and may also be expressed in marginal figures. Should there be any disagreement between the words and figures, the words will control, it being more difiicult to change them than the figures. Should words expressive of the amount be omitted, the holder may insert them, and, in case of suit, it would be a question of fact for the jury to decide as to what was intended to have been written. PRESENTATION FOR ACCEPTANCE. 79. As it is implied by the act of drawing and indorsing (68 and 69) that the drawer and indorsers guarantee acceptance and payment, the holder has recourse upon the drawer and indorsers, should the drawee refuse to accept. Not only so, but, as the contract was broken by the drawee's refusal, the holder has the right to demand and enforce immediate payment, no matter for what time the bill was drawn. This is one good reason for presenting the bill for acceptance without unnecessary delay. 80. If the bill is drawn at sight, after sight, after demand, accept- ance is necessary in order to fix time of payment. If it is drawn after date, acceptance does not fix time of payment, and it need not be presented until Negotiable Paper. gg maturity, even for the purpose of holdiug the drawer and indorser,. Still, even ZtlT- " ""' "'" *? '•''"^ P™«"ta»t, .,, if di.honored, the holder Z s^o„i?r"r ?r "" ■''■'"''' ""* '"'^'"^"■' »■«'> ^ «^p<^. "« !.«« the aaditional secunty of the acceptor. «„- i' '1 ""^ ^T^ "^'^ *'""" ^ '='""''''« '■» «°<»»°'». Md »« whether he owe. the drawer the amount of the bill, the request ehould be granted : tZw- four hou« « the usual time allowed in such a case. If the drLee be dZ\ tTljT'lf^^'' "T"'""' «d-'»»t»to'.-not for the purpose of bind- indofs^rs '* "' "" "«'" *" ''°'-''"' '" "<'" '^ W-"! «>. «. W^v^lA''""!' 't."°' »"'';«"' io'^ye a conditional acceptance. If he does 7i the dL tl! . l-y. *« <»™«; ""d if the acceptance varies fron. the tenor ot the draft the mdorsers will be no longer liable. for IfhtlTTTT *"^^"-^^^^'' «•• ^f^' protest is one made by a third person. found n^r . . ^'''''' "' °"' '^ '^' ^'^^°^«^'«' ^^«" '^^^ drawee can not hi found or has refused to accept. The acceptor mpra-protest engages to pay the bill iTfit of Jn '":•''' ^'""" '^" "^^' '^"^ ^^« acceptanc; will U for the benefat of all parties subsequent to the one for whose honor the bill was accepted «ndtr.\^^''' the drawee refuses to accept the bill, it is said to be dishonored, and the holder must take the proper steps to secure his right of action against the drawer and endorsers. If it is foreign bill of exchange it must be;,« and ho r^ L .^,"1^"' '"^°"°' immediately sent tS each party to whom the taTn Wl T' ^"^%^y^ ^^^ry-Pu*^c, stating that acceptance, or payment of acer. "Jzt:^::^^^^ ^"' '''''-'' ''- ^•^^'^' ^^^-^^ ^-- ^- -^-^' -<^ A iVbtory-i^A/ic is a law officer, known and recognized by the law of nations. t?belT . " '"^""^ '''^' "^'°^' ^^^°^ '^""'^ '^ ^^« P'«t««^. <^nables proof to be made in a foreign country of the dishonor of a bill. Iw ut ? !' *1'° T?.? P'*''^'"^ *^ P'^^'^ ^"^«°d ^^^^«' ^^^""S^ it is «ot required Z' i r r.!f ^''^/r '^°"^^ ^* ""^'^ ^^ g^^«" ^^« <^r^^«' ^°d indorsers. from ;^- • ? ' f ^^ *^' P^"^^"" *' ^ ^"^ °^ "°<^« ^ill "«* «^«"«e the holder sentetfvir^ ^ ""^^^ *^^ ""'^'''^ """'* ^^ '^°* *° *^^ surviving repre- holdtr^^L^hT' 'T. ^^""^ ^''" *"^'° *' ^^"^ *^' d'-^^^'- ^°d i"dorsers, the holder can bring suit for payment against either of them, either immediately (77 and 79), or any time within the Statutes of Limitations. INDORSEMENTS. T ^ ^^A 5 * °^^"^'*^^« instrument is drawn, payable to payee or order (66. Form til .1, K ^7't '1'^'' *^ "'^'*^^*' '^' ^^ "^"«<^ i'^d^^^ it' »• ^-^ W"te his name across the back of the paper. By doing this, he orders the sum named to be paid to the mdorser ; he also engages (69-71) to pay the amount himself, provided it is not accepted or paid according to its tenor, and he receives due notice of dishonor I h: 90 Negotiable Papeb. 87. Blank Indohsement. If the indorser simply writes his name on the back of the paper, it is called a blank or general indorsement. No indorsee is named ; it is, therefore, payable to bearer, and if the holder transmits it by mail or other- wise, he runs the risk of its being lost or stolen and afterwards negotiated. 88. Special Indorsement. When the Endorser r-ames the indorsee, it is called a special indorsement, or an indorsement in full. . =5re is an example : — Pay H. Wood, or order, (Signed) J. Jones. If it is now lost or stolen it will be of no value to the thief or finder, as it can not be negotiated, or payment demanded, without Wood's indorsement. For this reason remittances of negotiable paper are usually indorsed in this way. Any lawful holder can turn a blank indorsement into a special one, by Avriting above it an order for payment to a particular person. 89. Qualified Indorsement. An indorser can, with the consent of his indorsee, qualify, restrain, or limit his ordinary liability as an indorser. This may be done by writing over his indorsement " without recourse to me," or other words which show that he intends to avoid liability. If an indorser is acting as an agent he can avoid personal liability by adding the word " agent," " treasurer," '* cashier." or other words showing the capacity in which he acts. 90. A Restrictive Indorsement is one which restricts negotiability to a particular person, or for a particular purpose. If you indorse thus : " Pay H. Wood only," or " Pay H. Wood for my use," or " Pay H. Wood for my account,"^ you show that Wood has only authority to collect the money for you. Every indorser admits the genuineness of every signature upon the paper at the time his indorsement was made. An indorsement, or acceptance, may be made upon the paper before the bill is drawn. After the death of holder, his executor or administrator may transfer by his indorsement. A husband who acquires a right to a note or bill given to a wife, either before or after marriage, may indorse it. 91. Innocent Holder. If I fraudulently obtain your note for sales of goods which turn out worthless, or by any other illegal means, you can prove want of consideration, and defeat me on an action for payment. But if I should transfer the note, before maturity, to an innocent holder, i. e., one who does not know of any defenses or set-offs existing against it, you would be obliged to make payment to him. 93. There are five conditions required to constitute the innocent holder : 1. The instrument must be negotiable. 2. It must have been obtained in good faith. 3. For value. 4. Before maturity. 5. The purchaser must not have been aware of any defenses existing against it. Negotiable Paper. 91 his Generally the persou who sells property can only convey to the buyer such a title as he (the vendor) himself possessed ; but it is otherwise with Cash and Negofiabli) Paper. Even if the Paper were lost or stolen, and the finder or thief should transfer it before maturity to one who had no reason to suspect wrong deal- ing, the holder could recover payment. 03* If I should attempt to transfer to you a note or bill aft^ it has matured^ the fact of its being overdue is sufficient to put you on your guard ; there must be some reason why it is nut paid. Whoever, therefore, takes it after maturity^ takes it subject to every defense against it. 94. Days of Grace. These are three additional days allowed for the pay- ment of a bill or note after its apparent maturity. Thus, a note payable on the 5th of August will not be due until the 8th, and action for payment could not be begun until the 9th. They are called days of grace because they were formerly allowed as a favor ; but custom has grown into law, and is now established as a right. When the last day of grace falls on Sunday, or a legal holiday, the bill or note is generally payable on the second day of grace ; but, in Canada, by Statute, it is payable on the next business day following such holiday. 95* Demand. Demand of payment must be made, not for the purpose of holding the primary debtor, — who is liable in any case until barred by the Statutes of Limitations, — but for the purpose of holding the subsequent parties (86), or those who are conditionally liable. Demand must be made of the primary debtor before it can be made of subsequent parties. 96. Demand must be made by the holder, or his authorized agent, of the primary debtor, or his (81) lawfully authorized agent. If the holder dies before the bill is due, demand must be made by his legal representative ; if he has assigned for the benefit of his creditors, by the Assignee. If it is held as collateral security, or for collection, the one so holding it must make the demand, or he will himself bo liable. 97. Demand must be made on the last day of grace. If it is a note payable on demand, it must be presented within a reasonable time, — dopending on the circumstances. In computing the time when a bill becomes due, a month is always a calendar month. If the time is in days, the actual number must be counted forward^ including, in either case, days of grace. Thus a note drawn February 20 at 2 mos. is due April 23rd. 20 " 60 dys. " April 22nd. " " November 10 at 3 mos. is due February 13th. ^" 10 at 90 dys. " " 11th. It is not customary to extend the term of payment for any deficiency in the length of the months covered by the time. For instance, a note drawn 3l8t March at 8 months, and another 30th March at 8 months, both fall due on the same day, July 3rd ; i. e., the last day of June plus the days of grace. 92 Negotiable Paper. A note dated February 28th at 3 months is due May Ist, but one dated March Ist, only one day later, is not due till the 4th of May. If four notes are given, dated respectively December 28th, 29th, 30th and 31st, «atii at 2 months, they will all fall due on the same day, March 3rd. It is of importance to determine accurately the day on which a note or bill is «[ue, as an error of only one day may cause the holder to lose his remedy against the indorsers, and perhaps cause entire loss of the jmper. 98. If the bill or note is made payable at any particular place, demand should be made at that place, even if the place is closed. If no place of payment is named, it should be presented at the debtor's residouce or place of business. If he has absconded, demand will be excused. If the demand is not properly made as to time, manner, and place, the subse- ■quent parties will be released. The instrument on which payment is demanded fihould be shown to the party of whom demand is made, as if he pays it, he has a right to its delivery. 99. Lost Bill or Note. If demand for payment of a lost bill or note is made, a bond of indemnity (usually with two sureties, and for double the amount of the bill), must be executed and tendered to the party of whom demand is made, or remedy on the drawer and indorsere will be lost. The bond must describe the note or give a copy of it, and engage to indemnify the party against all claims by any other person, and against all costs and expenses to which he may be put on its account. 100. Payment. Payment of one of a set (Form III.) of foreign bills is pay- ment of all. Paymsnt by an indorser is satisfaction only in respect to subsequent indorsers, as the bill is not extinguished until it has been paid by the primary debtor. If yor accept a forged bill,— the holder being innocent,— you must pay ; you must know your drawer's signature. 101. Non-Payment. If payment is demanded and refused, steps must at once be taken to hold the parties secondarily liable. In case of a foreign bill it must be protested (84-85) ; if an inland bill or promissory note, notice will be sufficient, although it is quite usual to protest in either case, especially if the dishonored paper is held by a bank. 1018. Whether protested or not. notice must at once be sent by the holder, or some one acting for him, to each person whom he intends to hold responsible. If protested, the Notary will probably attend also to giving the notices. Notice should be given immediately on dishonor, the same day if convenient, or at least not later than the next day. If dishonored on a day preceding a holiday, notice should be given not later than the next business day following the holiday. Death of the holder or his agent will excuse immediate notice ; as will also the occur- rence of any event,— such as a snow blockade, or a calamity like the St. John fire of 1877,— which would make it impossible for the parties to communicate with each other, or would put a stop to business operations. In such a case, want of Negotiable Paper. 9a 3. Obtained by Fbaxjd. 4. Obtained by Finding. 5. Obtained by Larceny. notice wiU be excused as long as the hindrance continues. Notice may be given at any place, if given personally . If in writing, it may be left at the parties^ residence or place of business, or mailed, properly directed to his Post Office address. 103* Accommodation Paper. If I loan you my name and credit as maker^ drawer, acceptor, or indorser, you can not recover from me at maturity, as there is no consideration (72-73) ; but, if you transfer the paper to Smith, before maturity and without notice, he can recover from me (91-92), and I can sue you for the money so paid, and the paper will be evidence of your liability. 104. Usual Defensis. We have seen (91) that after negotiable paper ha» passed into the hands of an innocent holder, it must be paid, no matter what defenses may be pleaded. But as between the primary debtor and the payee, or any subsequent party who at time of transfer had knowledge of a defense, several defenses are valid, and, if proved, will defeat recovery. 1. Want of Consideration. If there is a total want of consideration, nothing can b& recovered ; if the failure is partial, only the balance can be recovered. 2. Obtained by Duress. Duress is compulsion, restraint, or fear of personal injury, or imprisonment. In such a case the element of assent is wanting, which want voids all contracts. The one getting possession by either of these means c standing that it is to be used for some distinct purpose, but is fraudulently applied to some other purpose, the holder cannot recover from the party deceived, until he shows that he received it in good faith, and for a valuable consideration. 7. Illegal Consideration. All illegal contracts are void. A bill or note illegal on its- face is utterly worthless. 8. Lapse of Time. The "Statutes of Limitations" provide (77) that suit must be brought within six years from time when due. Any payment, however, would have the effect of renewing the paper — giving it another six years of life from the date of such payment. 105. Presumptions of Law. The law presumes in favor of Negotiable Paper ; i. e., takes for granted, until the contrary is proved : 1. A valuable consideration, whether exprested or not. 2. That the holder is the owner. 3. That the indorsements and transfers were made before maturity. 4. That the holder took it in good faith and for value. 5. That the maker of a note, or the acceptor of a bill, is the primary debtor, and the drawer and indorsers conditional debtors. 6. That the maker intends just what tlie paper shows. 106. Foreign Bills of Exchange. When bills are drawn by a person residing in one country upon a person residing in another country, they are called Foreign Bills of Exchange. To provide against loss in transmission, they are drawn in sets, usually of three. Each one of the set is then sent by a different route or conveyance, so that should one or two miscarry the remaining one may reach its destination. When one is paid the others become void. They are always drawn payable in the currency of the country where the drawee resides. "WfWpp ' u Negotiable Paper. 107. The Bill of Exchange is the most ancient, as well as usefal and important, of all classes of Negotiable Paper. The following examples are given as illustra- tions of the way in which its use facilitates commercial transactions. Suppose Quill, of Liverpool, owes Jenkins, of St. John, and that Smith, of St. John, owes Ray, of Manchester, and that Jenkins also owes Smith. Jenkins pays 8mith by his bill drawn on Quill, which Smith remits to Ray, and Ray negotiates the bill or collects from Quill, as may be most convenient to himself; all this ■exchange is effected without any of the costs, losses, or rbks attending transmission of money. Again, suppose Jenkins has a quantity of goods on hand, valued at say $40,000, which he cannot dispose of to advantage at home, but which he can ship to Quill, of Liverpool, and realize enough to pay freight, insurance, etc., and still leave a profit of $5,000. Suppose all this has been accomplished : Quill now owes Jenkins $45,000, and if the gold is remitted to Jenkins he will have to pay, say, FOEM III. (&%Mn%e for £^oo. SL John, N. O., Aug. 10th, im. Thirty days after sight of this my First of Exchange (Second and Third of same tenor and date unpaid), pay to the order of Amm Mimgf Five Hundred (Bounds, Sterling, for value received, and charge to account of To JAMES GOODWILL, No. ixfl}. London, England. t^eni/U' KiiPcMiwe/c. (gxchanse for £500. «s/. John, n. e., Aug. 10th, 188 js. Thirty days after sight of this my Second of Exchange (First and Third of same tenor and date unpaid), pay to the order of Amu^S Mi&gf Five Hundred "Pounds, Sterling, for value received, and charge to account of To JAMES GOODWILL, No. laqb. London, England. t^eni/u zPa^^oe/c. (gxctiattsefor;f.. St. John, N. 'B., 18 __ of this my Third of Exchange (First and Second of same tenor and date unpaid), pay to the order of. fi^ value received, and charge to account of To.. No.. HI ' Negotiable Paper. 95 i % for transportation and insurance, besides having to wait, say, two months from the time his goods were shipped for his money, which, at 7 %, is $525. But by means of the Bill of Exchange Jenkins can get his money even before the ship sails, and without any expense, in this way : He ships his goods, consigned to Quill ; gets a bill (Form XIV.) of lading ; draws his Bill of Exchange on Quill ; and with his draft, bill of lading and insurance policy goes to a bank or broker, who may not only give him the $45,000 (the par value of the sterling bill), but in some cases may actually pay him a premium as well. 108* The buying and selling rate of the Bill of Exchange depends, like that of any other purchasable thing, upon the relative demand and supply. When they are scarce, they will be at a premium ; when plentiful, at a discount. The banker FoBK IV. Fbomissoby Note. ^68.^4. St. John, (December 18th, 188^. Three months after date, for value received, I promise to pay M^mitf MSSJ, or order. Sixty 'eight and -^ dollars, with interest from' date at six per cent. ^ ^ , Without the Interest clause, the note would only draw Interest from last day of grace. The place of pay- ment (98) may also be added. ■ ' FoEM V. Joint and Several Note. Fredericion, July ajth, 188 g. Sixty days after date, we jointly and severally promise to pay Jq&m Mt MMeki, or order. Three Hundred (Dollars. (if. t^&\ ^9n^m>. fjoo. When the makers jointly and Beverally promise, they can be sued either jolntl; or separately ; each agrees to pay the whole sum,— but, of course, only one payment can be enforced. If the words "and severally " are omitted, all must be joined in the Suit. When a note reads " I promise to pay " and is signed by more than one person, it is a joint and several note. Form VI. Chattel Note (Not Negotiable). ^^0. Yarmouth, Oct. 10th, 188^. Thirty days after date, for value received, I promise to pay S&JQ^ A Ali^Mp Fifty Oollars, in potatoes, at tht. then market value, to he delivered at their store, v n^ / P^^Ki HP mnmfw^f^m'' "I'w*"- 96 Negotiable Paper. makes it his business to purchase the{>e bills from the exporters, and sell them again at a small advance to importers. He will not probably sell the same bill he has purchased, but will forward those purchased to his agent abroad, and the pro- ceeds being placed in bank to his credit, he is enabled to sell his customers his own drafts upon the bank in which his funds are deposited. Form VII. Dub BtLL. (Dollars, value received. St. Stephen, ^December i^th, 188^. \p or order, on demand, Eighty Form VIII. Check. ^JOO. %m%k of WUm St. John, January 10th, 188^. Fi§Mp — ^^-.or bearer, Five Hundred (Dollars. No. it, 7^. The indorser of a check la on the same footing (69 and 86) as on all other kinds of negotiable paper. Checks are sometimes certified by the Bank clerk writing " good," or some equivalent w«rd, and his signature across the face of the check. The Bank •will then have to pay (68) the check even if it has been Improperly certified, or if the drawer has ao funds in the Bank at time of presentation. The certified check is very convenient for remittances, as it can be specially (88) indorsed, and the person receiving it has the full assurance that the check will be paid when presented at the bank. Form IX. Certificate of Deposit. SjOO. ^i- John, April 1st, 1883. Mairitime Bank. A* Mt, BiM^B&M has deposited in this (Bank, Three Hundred (Dollars, payable to M^M^J WiggiSL&r or order, on return of this certificate properly indorsed. ^ /^ Cashter. Form X. Receipt on Account. Si^O. Moncton, J line 41st, i38^. (Received from X Mt BwmlMjf One Hundred and Fifty l)ollars, on account. ^ ^ ^^^ . I Negotiable Paper. Form XI. Eeceipt in Full, 97 fug. 6^. (Received from and 3^ (Dollars, in full of all demands. (Dorchester, May i^th,. i88j. 1^ One Hundred and Nineteen u/6aooa. tnea FoBM XII. Pbotest fob Non-Payment. On thia twenty-aeventh day of Jvly, in the year of our Lord eighteen hundred and eighty-two, at the request of the Bank op Monteeal, holders of the Promissory Note hereto annexed, I, James Harris, a Notary Ihiblie for the Province of New Brunswick, by Moyai authority duly appointed, did exhibit the said note unto a derk aJt the ojfiee of the Bank of Montreal, at St. John, where the same is payable, and did demand payment of the said nate, to which demand he answered, I "No Funds." I, therefore, on the day and year above written, and after said demand and refusal, duly notified the maker and indorsers of the non-payment of tk same as follows : By serving personally on Gtoorge H. Oox., at his residence, in the City of St. John. By depositing in the Post Office, post-paid, in the City of St. John, a notice address^ to Mark Raymond, Sussex, N. B., that being his reputed place of residence, and the nearest Post Office thereto. One addressed to Samuel B. Jones, Hampton, N. B., thai being his reputed place of residenee, and the Tiearest Post Office thereto. Wherefore, I, the said Notary, at the request aforesaid, have this day protested, and do solemnly protest against the maker and indorsers of the said note, and all others concerned, for all exchange, costs, damages, expense, and interest incurred by reason of the non-payment of the said note. In Witness Whereof, I have hereunto set my hand, and affixed my seal of office, the day and year fove written. JAMES HARRIS, Notary Public. [Seal]. Form XIII. Notice op Protest. &. John, July 27th, 1882. To Mark Eaymond, Esq., Sttssex, N, B. Take notice that I this day demanded payment of Or&OT^B H. CJox, the "Ihaker of a certain Promissory Note for Five Hundred Dollars, dated April ?.ith, 1882, payable three months from date, and indorsed by you, and that payment was refused. I therefore look to you for payment. Also taJte notice that the same waa Protested this day by m^for non-payment. Your obedient servant, JAMES HARRIS, Notary Public. Form XIV. (Bill op Lading). Received from Amos Jones, St. John, on hoard the Steamer "Atlantic," whereof Henry A. Jenkins is nmster, and now lying in the Port of St. John, viz. : — Marks abd Nuhbkrs. Abtxcxbs, • Wemht. G. H. & Co., B., 48 bbls. Potatoes, 169 bbls. Apples, ^^9^^ Negotiable Paper. j^ng marked and numbered a» in the margin, in appareni good order, and are to be deliver^ in like good order {the act of God, the Queen's enemies, fir.', and aU dangers and aeeidenU of the seas and navigation excepted), mto QeOTge Henderson & Oo., or assigns, at Boston, Mass., on paymmt of Freight at the rate of. therefor. In WiTNffie Whereof, the Master, Qerk or Agent hath c^rmed to three JBiUs of Lading, all of this tenor and date, one of which being accomplished, the others to stand void. JOHN JONES, Agent. Doted at St. John, N. B., Jviy SOth, 1882. Threo copies of the BlU of Lading are usually made out The shipper keeps one, sends one to the Con- signee, and the master of the ship keeps one for his own use. Should the Consignee seU the goods before takJng deUvery of them, he can indorse the BlU of Lading to the purchaser, to whom the ship-master will then dellrer them, upon payment of the fireight. Invoices— Form XV. „ „^ „ ^ Boston, Mass., AprU lOth, 1882. Messrs. White & Osgood, Termi Ouh. Bought of H. B. Comstock & Co. Bbl8.Haip8, 60» ^14f> 72» 842* <• Dr. Beef, 56 465 42 423 " Mess Beef, " PorR, Tc. Lard, 410 56 354 CartJ^e, 12;^ $101 04 13^ 54 99 $11.40 68 40 $18.30 73 20 10^ 35 40 2 50 $335 53 (a) Number of pieces. (b) Gross Weight. (c) Wsight bbl. or tierce. (d) Net weight. Di7|Book34T. Mr. Henry Jones, Intereat oa all aoooanta after 30 dajn. Form XVI. Montreal, Q., Aug. lith, 1882. Bought of James Borque & Co. H.J. #.72 J. B.&CO., 1 2 Bbl. Eoa. Eio Coffee, 1 112— 29 49 = 177" ft)s. Nutmegs, #1, , Bag, 252—18 Bbls. G. Sugar, -{ 267—20 268 — 18 n,033— 75=958» Box C. Mustard, J's* 12 ibs.. Cartage, 26 m $ 72 77 46 02 10 80 20 100 59 2 40 1 00 $233 78 (a) Marks and numbers upon the Casks, Ac. (b) Gross walght and tare, (o) Net weight, (d) Size of package. m8M Negotiable Paper. 99 FOBM XVII. OUt» tor d««go. or mor. mu« 1- «.«. «, r«»lpt of rxKU. |J ^.^ yOKK, ApvU \bth, 1883. Messrs. Allen & Joyce, Tenai : Net 60 axjt, or 1 or t per sent. 1 p«r oent. dlioount In 80 d*y(, dlsoount In 10 days. Bought of Edwards jig 1 1882 May 10 16 16 21 24 27 8 H. K. King, Ring & White, Jones & Helmer, Eennay & Manks, Towns & Co., J. Pender & Co., ( Freight, 600 bbls. @ '; Cartflge, 600 " Storage, 600 " 3 mos. %, Cash, Note, 30 days, Cash, 1 mo. %, Note, 2 mos.. 200 25 76 85 125 90 $7.40 7.15 6.60 7.25 7.30 6.65 $1,480 636 812 181 620 698 00 25 50 26 50 50 00 00 00 72 $4,229 $558 00 i/HABGES. NetP 225 160 215 $420 18 15 105 May iyi3, Commission, 2} %, 72 roceeds, due Ju $3,670 28 E. & 0. E. B. John, May 28th, 1882. LOOMEB & WILLIS. mmmm iiiplii<»¥"«y'* . . i ni i, r i ii ii twii'i ■Tiin i i » n.pi i nniwuw;n ■^^P"^PW^^PP1!P^P^ mff^^mmm 100 Negotiable Paper. Messrs. McKenzie & Wemh, 1882. Jan. 1 May Aug. Sept. 1 1 15 Feb. 15 April June 1 1 Oct 19 Dec. 31 Form XIX. Account Ccbrent. St. John, Dec. 31«<, 1882. In Acct. with Sandall & Co. To Balance due, " Mdse. @ 3 mo8., " Do. " 1 " " Do. " 2 " Cb. By Cash, " Your note @ 3 mos., " Cash, " J. Jones' note due Nov. 10th, Balance due, $1,000 400 800 500 500 500 300 700 00 00 00 00 $2,200 00 00 00 00 00 2,000 00 $ 200100 FoBM XX. Account Curbbnt and Interest. McKenzie & Welsh in Acct. Ourrent and Interest Acct. to Janvary « Ut, 1883, with Sandall & Co. q- Dr. Date. Itkhs. Time. 1st. Amt. Date. Itshs. Time. Ikt. 1882. Jan. 1 May 1 Aug. 1 Sept. 15 1883. Jan. 1 1883. Jan. 1 Balance, Mdse., 3 mo., Do. 1 " Do. 2 " Bal. oflnt., Bal. Due, mo. di. 12 5 4 1-15 60.00 10.00 6.00 3.75 % 1,000.00 400.00 300.00 500.00 22.05 79.75 2,222.05 222.05 1882. Feb. 15 Apr. 1 June 1 Oct. 19 1883. Jan. 1 " 1 Cash, Note, 3 mo.. Cash, Note, due Nov. 10, Bal. of Int., Bal. of Acct., mo. di. 1 10-15 26.25 6-00 15.00 7-00 10.50 1-21 5.95 22.05 79.75 Amt. ~%'^ 500.00 500.00 300.00 700.00 222.05 2,222.06 % itfilMMia iMHaiiHtfMlHMiiiilHi OOMMERCIAL OaLCTJLATIONS. We have only space here for referring briefly to a few features of special interest to an accountant, which are not fully treated of in the arithmetics in common use. A few exercises in Partnership Settlements, Rectifying Deranged Double Entry Books, &c., are also added. PROFIT AND LOSS. Find the average Gain or Loss per cent, in each of the following examples. Observe, the Gain or Loss per cent, will be on the coat of the goods sold:^ Ex. 1. Cost, $3,000; Sales, $2,000; on hand, $1,500. 2. Cost, $4,575 ; Sales, $3,275 ; Inventory, $1,575. 8. Cost, $10,786.40; Sales. $6,058.69; Inventory, $5,278.50. 4. Cost, $5,276.12; Sales, $2,518.36; Inventory, $2,128.17. 5. Cost, $7,270.75; Sales, $5,456.80; Inventory, $1,526.75. 6. Cost, $12,276.48 ; Sales, $7,911.36 ; Inventory, $5,244.16. Ans. 33J fe G. Aru. 9i " G. .471*. 10 " G. Am. 20 " L. Ans. 5 " L. Ans. 12J " G. DISCOUNT ON BILLS AND INVOICES. Ex. 1. A merchant who has his stock of goods marked for sale at an advance of 25 % on cost, offers to sell out his entire stock at a discount of 20 fo from the marked price, thmking to make a net gain of 5 % . Will his expectations be realized ? Operation.— Every $100 of cost would sell for $125, and 20 fo of $125 is $25, which, deducted from the sales, would just leave the cost. (Serious mis-calculations "f this kind are sometimes made : the seller n< considering that the percentage of Gain and oi Discount are on different values.) Find the net Gain or Loss in each of the following examples : — Ex. 2. Sold at 10 % advance on cost, and deducted 5 fo from the face of the Invoice. Am. 4J % G, 3. Advance of 20 % and Disct. of 10 % 4. Advance of 40 " and Dlsct. of 25 " 5. Advance of 60 " and Disct. of 33^ " 6. Advance of 60 " and Disct. of 45 " Ans. 8foG. Am. 5 « G. Am. Neither G. nor L. Am. 12 fo L. CANCELLATION APPLIED Tp INTEREST. There are a great many short methods of working interest. Of these the cancellation method is probably the best, as the process is the same no matter what the rate per cent, and requires only the observance of the Genebai, B.VLH.—The Interest is equal to the prodmt of the Principal, Bate, and Time, divided by 12 when the time is in months, or by 360 when the time is in days. Ex. 1. Find the Interest on $280 for 8 months at 6 %. Operation : 280X^Xg=$11.20 ; or arranged thus, H n% ^ (101) 280 f 184 $11.20 Commercial Calculations. Arrange the numbers as shown above, then cancel the divisor by either of the other terms having factors common to it, after which the product of the remaining numbers will be the interest. Point off two decimal places in the product when the principal is dollars ; four places (two for principal and two for the rate), when the principal is in dollars and ce^ts. Almost every problem can be cancelled. Even when the divisor and the other terms have no common factors, the process can often be advantageously used. For instance : Ex. 2. Find the Interest on $276.29 for 6 mos. at 7 %. %n,^ 23.02^ n \ 5 And 23.02 x 07 X 6 = 88.067. Observe that although there ia a remainder, the interest on the value represented by it is only about one- seventh of a cent. Find the Interest in the following examples : Ex.3. 4. 5. 6. 7. 8. 9. 10. $ 1.00, 11 months @ 6 % 684.20, 4 964.50, ,4 1,500.00. 7 1,560.00, 11 1,569.45, 15 560.45, 18 891.24, 9 6 9 10 8 9J 6 ^718. % O.OoJ. Ans. 13.68. An^. 28.94. Am. 87.50. ^718. 107.25. ^718. 156.95. Am. 79.86. Am. 40.10. When the time is in months and days, and the days can be divided by 8, reduce the days to the decimal of a month, and proceed as shown above. In this case an , additional place must be allowed in the product for the time. Ex. 11. $ 57.45, 14 months, 12 days @ 6 %. Am, $4.14. 12. 276.40, 4 " 24 " " 5 " Am. 5.53. 15 " " 12 " Am. 202.29. 13. 642.20, 31 Operation 1% Ex. 11. 57.45 6 12 n Ex. 12. 276.40 5 n 57.45 X. 06X1.2 = 14.14 276.40X20=^5.53 Ex. 13. 642.20 31.5 202.29 Am. % 12.30. Am. 69.65. Am. 168.30. Am. 193.76. Ex. 14. $468.75, 4 months, 15 days @ 7 %. 15. 746.25, 22 " 12 " " 5 " 16. 680.00, 49 " 15 " " 6 " 17. 960.00,34 " 18 " " 7 " When the time is in months and days, and the days can nci be divided by 3^ reduce the time to days, and use 360 for a divisor. In all the short methods of working interest the year is considered as consisting of 12 months of 30 day* each, or 360 days. This gives the interest . § ■ or -jX^ too much ; the exact interest can therefore be got by sabtractiiig from the interest so obtained the 1. part of itself. tv at m su bi pa P« fr oi m til th til ai mmmmmm Br d. ae- GOMMEKCIAL CALCULATIONS. Ex. 18. $1,080.00, 7 monUiB 11 days at 7 %. Aru. W6.41. 19. 160.00, 8 " 17 " 4J" An$. 6.14. 20. 927.14,13 " 16 " 8 " An». 88.44. lOff Ex. 18. Ex. 19. nm 3 $m 2 Opera nON: m 7 221 ^0 m 267 $46.21 $5.14 Ex. 21. $174.25, 1 month 12 days @ 6 % . Am. $1.22. 22. 820.40, 2 months 3 « II 6 II uins. 2.80. 23. 4,580.00, 8 13 (f « 6} 41 Am. 177.03. 24. 16.75, 7 17 K II 7 11 Am. .74. 25. 61.17, 9 29 er Ist 915, December 7th 910 ; 1862, February 16th 910, September 24th 810; 1865, October 27th, (80.50 ; 1860, July 6th 925, October 14th 800 ; 1867, March 20th 925; 1868, March 2ud, 840; May 4th 820, July 4th 835, September Both 843.50; 1869, April 10th 808; 1870^ March 1st 848 ; 1872, September 7th 99. Atu. Balance due by Merchants' Rule, 888.07 ; by Common Rule, 8266.87, or a differtnee (if 9178.80 on a 8900 Mortgage. The last example is given by Duff, and was a statement of actual transactiona left in his hands for settlement. He also cites a chancery case, in which the difference between the two methods of computing interest amounted to about £24,000 sterling. The greatly differing results shown by the above examples will, no doubt, surprise those whose attention has not before been directed to the subject. The surprise, however, will disappear when the matter is investigated. Let us again examine Example I. The Merchants' Rule, it is dear, gives both parties simple interest. By the Common Rule $200 interest were paid 10 months before any interest was due ; $192, 8 months before ; $183.92, 6 months before, and so on. The debtor therefore loses the interest on these sums for the time paid before due, amounting at the end of the first year to $28.39, just the difference between the balances due at that time, as found by the two methods. The difference ($178.30) at the end of the second year is more striking, because in this case $200 interest are paid 22 months before settlement ; $192, 20 mouths before, &c. In short, the difference will increase just as the payments are multiplied, or the time prolonged ; and, when payments are made at short intervals of time, the Common Method may result in compound interest in its most exacting form, as compound interest is interest added only once a year, whereas, by this method interest may be added as often as a payment is made. STERLING EXCHANGE. Sterling Exchange differs from other kinds of exchange in having 90 for a basis instead of 100. Thus, the old par value was £90 sterling = £100 currency, or $400. But as this value was less than the intrinsic value, as measured by the comparative weight and fineness of the gold coins of Great Britain and the United States, the rate was in the year 1834 changed by Act of Congress to Commercial Calculations. 105 £90 sterling = £109 J currency ^ 8488, or £1 sterling = iyiyJt = f 4.861. ThU standard was alHo adopted by Canada in 1857, and is the pnaent par value of exchange. Hence exchange is really at par when it is quot«i at 9J% premium ; but whatever the quotation (8, 8i, 9, 10 %, &c.,) it is that much in addition to the old par value of £90 sterling r^ £100 currency =■ $400; or £1 sterling = 'i^ = Ex. 1. When exchange is quoted at 108, what is the value of JE676 ITs. 6d. Stg.? Operation : £^pStg. : £576.875 :: m2 : $2,769. 4.8 i Reduce 17*. 6d. to deoiinal of ft i, then an £90 Stg. i« to the given aura, Stg., so is the value of the first term (the quotatioa X ^7 ^ '<>' doUan) to the value of the second term. J Multiply the given sum bjr ^A to get the old par J value, then this value by 1, plua the premium. 40 12 Or, 576.875 X ^ X W = ^2.769. 40 f Or — V 1 Oft AlACis/ l\7R ft7R — ftO 7RQ J Find the value of £1 Stg. at the rate required, and 9 "^ ^'^° — **'°" X O / 0.0 / — »Z, / ijtf . I multiply thU value by the given sum. Ex. 2. Find the value in Eltg. of $3,698 at 12<^ % premium. Operation : Reverse the above methods. $450 : $3,698 :: £90 Stg. : £739.6 = £739.128. Or, $3,698 X ~ X rAl = ^739,6. 40 1.125 Or, $3,698 -f- by the value of £1 Stg., found by X the old par value of £1 by 1, plus the premium. » i Aa the value of £90 Stg. (the quotation X by 4) is to the given value, so is £90 Stg. to the Stg. sum required. Divide the given sum by the old par value per £, and by 1, plus the pre- mium. .3. F ind the value of £ 276 18«. M. @ 8 fa premium. Am. $1,329.30. 4, « II 514 12 3 8J " II Am. 2,481.57. 6, t( « 126 9 6 " 9 " II Am. 612.70. 6, u « 1,028 14 6i " 9J " II Am. 6,006.45. 7, u II 221 19 4f " 10 " II Am. 1,085.18. 8, • C( i( $2,768.10® 8 fo. Am. £576 138. 9d. 9, l( II 728.25 " 8| « Ans. 150 13 b\. 10, u II 1,278.36 " 9i " Ana. 262 13 6J. 11, u