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Tous las autras axamplairas originaux sont ffilmAs 9n commanfant par la pramlAra paga qui comporta una amprainta d'imprassion ou d'illustration at en tarminant par la darnlAre paga qui comporta una telle empreinte. Un des symboles suivants apparattra sur la darnlAre image de cheque microffiche, selon le cas: le symbols — »> signiffie "A SUIVRE ". le symbols ▼ signiffie "FIN ". Les cartes, planches, tableaux, etc., peuvent Atre ffilmAs A des taux de rAduction difffArents. Lorsque le document est trop grand pour Atre reproduit en un seul clichA, il est ffilmA A partir de Tangle supArieur gauche, de gauche A droite, et de haut en bas. en prenant le nombre d'images nAcessaire. Les diagrammes suivants illustrent la mAthode. -rata o >elure. I A J 32X 1 2 3 1 2 3 4 5 6 THB CANADIAN ACCOUNTANT. A PKAOtlOAL ITSTUI Of BOOK-KEEPING, OOHTAIHHO A COMPLETE ELUCIDATION OF THE SCIENCE OF ACCOUNTS BY THE LATEST AND MOST APPROVED METHODS, BUSINESS COBBESPONDENCE, MERCANTILE FORMS, AND OTHER VALUABLE INFORMATION. DBSIONBD FOR TBI V8t OF Counting Houses, Business Colleges, Academies AND High Schools. BT S. G. BEATTY and J. W. JOHNSON, Tn VOHMBB FOVRSSB, AKD TBI LITTBB Omt OF TRB PBINOIPAU OF OHTAJUO BVUmil OOLLSaS, BiLLBViLLB, Out. ; a. Mbkbeb or tub Coumoiz. of trb imTiroTB of AocouirTAini ▲xd ADJvnBBi OF Ontabio, and Authob of '< JoHVioir'i JouTT Stock Co. BooK-KBXFDro." Ifixtk KBBFIirO." Ifixtk dlditUftt.— StrvtifeA and tfittAirgdl. PUBLISHED BY THB C01.I.E08. PRICB $1.00. BELLEVILLE: PRINTED FOR THE PUBLISHERS. 1886. HF 5^35' 1895* BMTBRBD AOOOBDIMO TO ACT OF PARLIAMBNT OF OAXADA, ni TBI TBAB OVB TH0V8AI[1> BIOHT HUNDBBD AMD BBY kirTT-TOOR, BY f. O. BEATTT, ABS m THB TBAB ONE TBODBAND KIORT HUBDB iZ> A:ilD BEVSNTY-KIMB, BT 8. O. MBATTT AMD J. ▼. JOBNBON, IN THB OmOB OB TBB MIBI>T££ OF AOBICULTUBB. i- lA.t PREFACE. The study and practice of Book-keeping are now recognized not only as a Science but equally so as an Art, and, while the science remains permanent, the art is almost as variable as the different methods of conducting business. They are intimately connected with the principles upon which most men have to depend for success in the business of life, and appeal strongly to the judgment of all as essentially necessary in the education of the people. No sensible man now disputes their paramount importance. The time has long sinco gone by when a hap-hazard system of recording business transactions will answer the requirements of men engaged in trade and commerce. The magnitude and variety of these engagements are such tliat no dependence upon mere memoranda, or an unsystematic method of keeping accounts, will enable an individual to calculate with accuracy his gaind and losses, and so order his affairs that he may know at any tiuie how he stands with his debtors and creditors. There must be a system, und that system must be reduced to an exact science, as invariable in its results as the problems of Euclid. Is such a thing possible in the theory and practice of Book-keeping ? It is possible, and its possibility is not only thoroughly established in the commercial world, but it is made imperative in the qualification of those who expect to compete in the great struggle of busi- ness life. This view is now so universally acktiowledged and acted upon that attention is being callet^ to the necessity that exists for a more thorough and practical course of business training even in our public schools. In the present work the authors have aimed at a combination of the most practical modes of keeping accounts, adapted to various departments of business, and have brought to bear upon it the experience gained as practical accountants in connection with some of the most extensive business houses, joint stock com- panies and manufacturing concerns in Canada, and as teachers of the subject for many years iu the largest and most successful Business College in the Dominion. The arrangement is such that the divisions of the subject ar6 presented in a naturally progressive order, and the student is led by easy transitions from simple transaction^ to the most intricate exercises to be mot with in business, and is able without difficulty to trace the connecting links that make the whole science one harmonious system of definite and accurate business record. The work is, as the name implies, something more than a mere treatise on Book-keeping. It deals I not only with the science as applied to accounts, but explains and elucidates the I art by which these accounts and all other forms of dealing and eommunication I are applied to every-day transactions. It is divided into three parts, each distinct in its own special design, but so I arranged that the student can trace the mutual dependence of one upon the other, and follow the progressive steps that lead to the final result, r Part I. contains a complete and comprehensive course of Book-keeping, illus- Itrated by means of examples of sufficient variety to make it easy of compre- 1 hension. , Part II. is intended as a business course fur advanced pupils, and comprehends the most practical forms of keeping accounts according to the methods adopted by the best business houses. It includes Wholesale and Retail Merchandising, Manufacturing, Settlement of £states, Steamboating, Municipal Book-keeping, Warehousing, Dealings with Banks, Farm Accounts, Church Accounts, &c. Part III. contains forms of business papers in general use, and the principal laws which govern them, full instructions on Commercial Correspondence, with a great variety of Model Business Letters, short practical methods of computing Interest, Percentage, Partial Payments, Partnership Settlements, &c., besides valuable rules for Lumbermen, Mechanics and Farmers, illustrated by examples. Many thanks are here tendered business men and mechanics, who most courteously responded to questions presented to them, and furnished valuable and reliable information respecting particular departments of busincRo PRKrACE TO rOCaTH IDITION. To the present edition han been added a set of Farm Aocoanta, originally prepared by J. W. Johnson at the su'.'geation of the Honourable the Provincial Treasurer of Ontario, for the Royal Commissioa appointed to take evidence on Agricultural matters in the year 188U, and which is recommended by the Commisaioners, and printed by them, along with the author's evidence, in their report. The present edition is thoroughly revised, and the work is again enlarged, much valu- able and practical matter being added. The authors are determined that the " Canadian Aooocntant " shall always be in the front rank as a text book, and they will continue to add, as they have in this and former editions, whatever in their own experience or the experience of others, they may find valu- able in accounts, and worthy of a place in such a work. PBEPACK to fifth IDITION. The last edition of this book was published in 1881, and in 1882 another is called for. We have in this, as in all former editions, added a large amount of original and valu- able matter, and notably a stt of accounts illustrating a double cuiry method of keeping the books of a church or other public institution. Other subjects, pertaining to practiou accounting and. office work, which had already a place in the book, have been enlarged upon, and more fully illustrated and explained. Since the fourth edition was published the law imposing duties upon x'romissory Notes and Bills of Exchange has been repealed, and the necessary changes, consequent on this, have been made throughout the various portions of the work. PCEFAOI TO SIXTH BDITION. The fifth edition of this book was a much larger one than any of the preceding ones ; the present one is equally large. We have avoided the temptation to stereotype the book, desiring to be always in a position to make such changes, small or great, as will keep ths work fresh and abreast of Uie latest ideas in accounting. Ontarto Business Colleqb, BeUeville, 18b5. S. G. BEATTT. J. W. JOHNSON. INDEX TO SUBJECTS. PAOI AbbNTUUom oMd In tha Work • Ijoeounti-alM *0 AleoomrooiUtion Not* M, 176 A«Mi»UnM of a Di«ft t2, 2IS AddiUou 2M Admlnlitntor'i Form 130 AdTle* of Shipment U\i IffMmantfor BulldbigaHouM 83t Alteration of Nota* 310 Application fi.r a Hltuation 2S1 Arithmetioal RIgna 10 Artlolea of Co-Partneralitp 230 AaaeUandLUbUitiecStatamant ITl Aaaeaamant 1B3 Aaalgnmentof Leaia 318 AMlnnment of Mortgaga 330 Arerageof Aceounta 365 ATerageorAooountSalaa 270 Balancing Accoon ta 43 Balance Sheet 91 Bank Pais Book 137 Bank Check Book 167,141 Bank Draft 140 Bni Book M, 05 Billa and InTOtcea S6 Bin for SerTloea. . . . 89 Billa of Exchange 207 Bill* of Lading 216,235 Bills Payable , 30 Bills Receirable 20 Board If easare 376 Bonds and Mnrtgtgea Payable 31 Bonds aitdMortgatfeaBeoeirabla 31 Bond : 218 Bricklayers' Work 281 Books as EWdence In Court 1*4 Books used In Double Entry 16 Book-Keeping for Churohea 19T Bnsineas Forms M Busineas Letteia 248 Business Series 49 Busineas Stateroenta go Cash Account 19 Cash Book 71,86,109 Uancellailon 2C8 Carpenters* Work 278 Cattle Weight by Meaauremant 286 Charges Account 21 Oianging Single tt> Double Entry 82 Changing Doable to Single Entry 84 Chattel Kot<>s 216 Cheese Factory lUlk Book 134 Circular Letter 2B2 ClaasUled Statements 37 daaalflaation of Acoounta 39 Closing the Ledger 43 Csmbined Statement 76 CommeroUl Papers 315 Compound Partneiahip 291 OM|deused System of Book-keeping for Betall BnainoM 122» Ooi»tgnmanta Explained n Coat Mark, Set of Charactcra for 196 Coupons 316,233 Correapondenoe i{85 Oorreetion of Erroia 48,136 PASS Credit Kota 59 CroasBntriea IM Day Book 10,38 Day Book Index ISS Dealings with Banka., 18T Detection of Brrora 47,136 DepoaltSlIp 140 Debentures 154, 338 Debenture Beglster 154 Debtorand Creditor 16 Deeds 388 Dellrery Order ITO Dlrldend onSharea 78 Distribution of Oatna and Loaves In Partner'hip. 80 Distinction between Single and Double Entry. 16, 81 Discharge of Mortgage 231 Discounting Bills and Inroleaa 381 Discounting Notes and Entriaa 176 DlTlMna for Circular Fignrea 364 Double Entry 16,38 Doable Equation of Aeconnta 367 Drafta 63.67 DneBlUa 64 Dunning Letters 346 Easy Method of Addition 368 Entrlea for Renewala of Notea 174 Equation of Aceounts 365 Estlmatea Municipal Book-keeping 158 Etiquette of Letter Writing 341 Exerclaea In Ledger Aeconnta. 16 Exercises In Jonmallslng Shipments and Cnn- slgnmsntf 68 Expense Account 21 Example of Single Entry 81 Explanations snd Forms of Business Papers. . . Snr Exsmplesof Punctuation 388 Filing Businem Papers 73 Farm Accounts 1R4 Form of aBond 218 Form of aLettor 287 Forms of Endorsementa 313 Freight Book 142,146 Furl Hook 143 Olaxiera' Work 2f>3 Gauging Casks 286 Goodwill 77 Hands' Regltter 142, 144 Hay, Figuring Cost of. 278 How to put Cheques through the Ca«h BooK — 88 How to mark Cost and Betall Price on Goods. . . 1P6 Insurance Account 21 Interest and Discount Aeoount 31 Index to the Ledger 33 Invoices 68 luToieeBook 107. 106 Indorsementa 211 Interest by Canoellatlon 269 Interest (Tarlous methods) 3S> Interest on Notes 215 Inventoryof Stoek 29 Journal... 17,80 Journalising 34 Journal Day Book 85. ins. 130 Joumallalug Shipment Co.'a and Herebaiidlse Co.'s ... 94 Joint Notes 818 PAOI LtdgW 17,83,45 Imkm su,ais LrU«r inolotlng Aeooant SalM 300 Letter of R'«omineDtti>r Aoknowledglni Reoalpt of Shipment 388 LeIkTof CnKlit ,....308 IiPtt<*riof IntAidaetlon 348 Log! Kmlucod to Board MeMtur* 378 iHitt Bill or Note 318 ll»iiufiteturliig BuaiiMM 135 Msnttrat 334 Mawn-e Work 380 llt!rc«ntile Termt 10 llurili«i'dl->e Aoooant 19 McraliandlM Compuiiee US ](<>a>ur<>inentof Lumber •- 378 >f etuurenu-nt of Corn in Crib 388 Stvoauromeiit of Orain 288 XaMnremeDt of Wood 278 Mc-aourliig r.and 386 Mrchaiiics* Work 278 Mothodof WilUngoff Bed Debts 177 Method of keeping Bank Aoot. In Caeh Book. . . lUO lliltfn' KuIp (or Wt-ighing Wheat 274 Monthly Trial Balance 116 Monthly Journal 124 Mortgign 318 Monthly Statement 67 Municipal Aooonatt 163 Multiplication 288 Non-K<«id«nt Tax Book 164 Notes aiid Biilit 81,65,208 Notice of Protaat 224 Obligations of Partiee 211 Ot>s<>rvatloiis on Books 146 Opening L* dgers under Tarionsolroumstanoea.. 181 Ord«r uf Clusing Aeoounts 42 Orders ft! Order fi>r Goods 247 Partial Pitynienta.. 264 Painters' Work 280 Pai tnershi p 3^ Partners' Capital and Partners' Current Aoct.. 183 Partnenthip Settlements 293 Psssagu Book 142, 144 PartlAH to a Bill or Note 208 Pay Roll 138 Paying a Note before Maturity 177 Payment of Notes 214 Pei-Minal Accounts 21 Plaiterers' Work 280 Plant Account 129 Power o< Attorney 280 Promthsory Notes 66, 308 Private Ledger 17S ProtHStd 221 Practical Computations 264 Protit and Lioss 368 Prublem« in Partnenihip Settlements. . . 2M Punctuation 237 QuesUonn for RsTiew, Chap. 1 33 Qumtlons for Review, Chap. II 38 Qupstions for Review, Chap. Ill 48 Que^tfoni) for Review, Chap. IV 06 Questions for Review, Chap. V 88 Questions for Review Be ilness Papers 234 Quitclaim Deed 226 BapldProo«»a of Marking Ooods 387 Besulti of Bnrolies la Ledger Aooti 38 PAoa Remarks on Notes and Bills 81 Ht'newals of Notcf 84,78 Receipts 61, SIT Recommendations In fkror paMy seeking a situ- ation ... 311 RequlsltM of a RIII or Note 308 Retail Mark. Set of LettMS for 198 Rule for Jnumalising 88 Rules for Jonmaliaing Draft* ^ 67 Rules for detiHitIng Krrors in Trial Balanoes.... 186 Rul«« for Caneeiuaon 288 Sales Book 117 Set Set Set Set Set Set Set Set Set Set Set Set Set T... II.. Ill ., IV.. v.. VI.. VII.. VIII IX. X. XI. XII. xin. 3T 48 80 88 69 74 76 78 88 98 loa 198 128 Shares Bought 68 Shipment* Explained 67 Shipment Companies 93 Simple Deed 236 Single Entry 78 Six Column Journal 86, 100 Simple Partnership 290 hinking Fu'd, How to Levy 164 Slating Meanurement 279 Specimen Ledger Closed 48 Statement of LoMes and Gains 37 Statement of Hesources and Liabilities 88 Steamboatlng Set 143 Stock Exoliange 206 Storage 273 Sulwidiary Ledger 197, 203 SuggestioTis to Depositors' in Banks 137 SuggeNti'-ns for Drawing Checks 188 Sundry Debtors Account 09 Superscription, Form of 243 Table for marking articles bought by the doien. 268 Timeand Wages Register 131 Title* of Respect in Correspondence..... 238 Tiiing Measurement 278 To close a Single Entry Ledger 8t Tc show Settlements In Ledger Acconuts with- out ruling 178 To find the Cubical Contents of Round Timber.. 378 To find the Cubical Contents of Square Timber. 37T Trial Balance 86, 170 Trade and Cash Discounts 196 Trsnsfer of Notps and Bills 2IS Tranoferring Acots. from an old Ledger to a new one 184 Useful Contractions '388 Waiving Protest 821 Wart-housing Set of Books 170 Warehouse Kecelpt. 176 Warrant Book 164 Weekly Tim* and Wages Begl te 181 Will 338 Working Aoeomt , 178 TO THE STUDENT. The course of study oumprehended in this work is of the most useful and prao- I tioal nature. It is not designed simply for the merchant, but so arranged as to be of incalculable advantage to all classes of the community — the farmer as well I as the merchant, the mechanic as well as the professional man. As you commence these studies, remember they are worthy of your best ener* [gies, and require persevering application to thoroughly nuMter them. You enter upon them for the purpose of acquiring an education that will fit you to transact business systematically. Tou bring to bear in connection with your labors such [heart and brain as it pleased the Almighty to give you. Ton should let it be a settled rule with you never to proceed onward while anything remains uncon- [quered behind. The implied compact between you and your teachers pledges both parties to a [faithful performance of duty. It is, therefore, of the first importance that you [should enter upon your labors with a thorough appreciation of your privileges and [obligations. In the first place you require to apply yourself systematically and faithfully, [or the best instruction will avail you but little. Your teacher is merely your [guide. He can locate your difficulty, and point out the path you are to pursue ; [but learning is the result of thinking, and no teacher can either think for you or [endow you with thought. Do not be ashamed to confess your ignorance, or pretend to understand that [which you do not, for assumption of knowledge is the greatest stumbling block to progress ; it becomes a perpetual rock of oflenoj to those who would glad! j' bid you, if the way were clear. Do not ask for aid until you need it, which will be when, after faithful trial, rou have failed in the attainment of the desired result. A teacher who will aid ^ou sooner than this may mean to be kind, but is unthinking, and in fact doing (Tou an injury. This book contains the work assigned for the Theoretical Course in >ntario Business College, and is calculated to impress upon your mind the princi- ples of the science of accouuts, and to prepare you for a work of a more difficult |ind varied nature which will be presented hereafter. Your success in the more jidvanoed departments will depend to a great extent upon the thoroughness of ^our understanding of the work you are about to commence : therefore, do not leasure your attainment from time to time by the number of pages over which {TOU pass, but by the pdrfectness of your mastery over them. Do not under any insideration pass from one set to another without fully understanding the subject, 3th in its general and Rpecial application. Your labor will not be purely and only intellectual. The accountant requires neat, legible, rapid style of penmanship. The intrinsic value of this accomplish- lent is beyond computation, and should receive the attention its importance demands. A good expeditious hand-writing is one of the strongest elements of promotion and sucoess, and carries with it an indisputable referenoe. The collateral studies of Arithmetic, Correspondence, etc., which you will pursue in connection herewith, are essential to a fair understanding of your duties, as well as to the symmetry of your course of training, and should not be under- rated. Make every arithmetical calculation yourself, as you proceed. Bely upon no result stated in the book, until you have first made the computation on which it depends ; otherwise you will gain little from its perusal. What is worth doing at all, is worth doing well. In solving the Examples for practice, exercise your oum eommon aenae in determining how each transaction is to be entered. Make younelf familiar with the most concise and business-like form of expression, in recording your transactions, and in your correspondence. Spell all words correctly. Pay the strictest attention to punctuality, neatness, accuracy and order. Accuracy in accounts is a cardinal virtue. It is less difficult to fall into errors than to correct them. Therefore, Exercise all diligence to keep your Account Books neat, legible, promptly written up, and free from errors. St elements of H hioh YOU will 1 . of your duties, ■ VOCABULARY not be under- H H Of Rely upon no H tn on which it H ABBREVIATIONS AND MERCANTILE TERMS. is worth doing H ■ ABBnB w 1 A I IvNSa man tenae in H Adv. Adventure. Ent. Entry. H AO'T. Account. Kx. Example. is-like form of H Amir. American. KXOIT. Exchange. Am't. Amount. EXP'8. Expennes. 3e> ^M Ans. Answer. eJity, neatness, H Apb. April. P/ » e avor. H Abs'd or As'd. A^rted. Fbb. February. fall into errors H Atto. August. Fio'd. Fol. P'ipured. Folio. HI Bal. Balance. Forw'd. Forward. ible, promptly J| B.-B. Bill Book, Bank Book Fa. From. Bbl. Barrel. Kb'T; Freight Bills Pat. or B.P. Bills Payable. • F. 0. B. Frew on Ronrd H Bills Rbo. or B.R.Bills Receivable. P. 0. 0. Free on 'Jars. H Bk. Bftok. H Blk. Black. Gal. Gallon. H Bo'T. Bought. OUAB. Guarantee. I Bao'T. Brought Hhd. Hogshead. H Cap. Capital ^1 C.-B. . Caxh Book. I.-B. Invoice Book. H Co. Company. I.B. (Id est) That is. Insurance. ^1 Col'd Colored. Ins. 1 C«iM. Commission, Commerce. Insol. Insolvency. 9H Conbq't, Consignment. Inst. (Instant) The present H Cb. Creditor or Credit. month. B C. 0. D. Collect on Delivery Int. Interest B D.-B. Day Book. Inv't Inventory. ^B Dec. December. H Dep. Deposited. Jan. January. ^1 D'PT. Draft. J< >UB. Journal. H Dl8. Discount. J. P. Journal Folio. H Div. Dividend. H Do. (Ditto) The same. Lab. Labor. ^m Doz. Doten. IjBs. Pounds. H Db. Debtor or Debit. Led. Ledger. B' Dbat. Drayage. LP. Ledger Folio. B D'YB. DayM. L. &0. Loss and Gain. ^^B' Ea. Each. Mab. March. H E.E. Errors Excepted Mdsb. Merchandise. B E.&0. £. Errors and Omissions M. or Mo. Month. H Excepted. iMoLS. Molasses. H Eva. English. MUT.* Mutual. 10 N. n. Nr.. Hov. Oct. O. I. B. P. Par. Pay't. P.-C.-B. P'D. P'KO'g. Per. pR. Pr. ct. PnEM. Prop, Prox. P8. Reo'd. R.-R. 8. B. Sept. Sh. Ship't. CNota Bene.) Numbep. November. Take Notice. October. Outward Invoioe Book. Page. Face Value. Payment. Petty Cash Book. ^ Paid. Packages. Personal. (Per.) By. (Per centum.) By the hundred, Premium. Pro6t. (Proximo.) The next month. Pieces. Received. Railroad. Sales -Rook September. Share. Shipment. St'b't. Rtoiimboat. Stor. Storage. Siinu'h. Sundries. Super, or S. F.Superfine Ult. Viz. Vs. Weigh. Y'DS. Yr. ® V. + X 4( V V V (Ultimo.) The last. (Videlicet.) To wit, namely. (Versus.) Against. Weighing. , Yards. Year. At. (Per Centum.) By the hun- dred. Sign of Addition. " Subtraction. " Multiplication. " Division. " Eouality. (Ditto.) The same. One and one-quarter. One and one-halF. One and three-quarters. MERCANTILE TERMS. Abatement— A deduction of diaoount for damages on goods, or for payment of dematids before due, etc. Acoeptanoe— 1st. The receiving of a draft or order, in such a way aa to bind the acceptor to payment. It consists in the acceptor writing across the face of the bill " accepted," and signing his name. If drawn payable at a certain number of days' sight, the date of acoeptanoe should also be given. 2nd. A draft accepted. Accommodation — A loan of money. When applied to bills of exchange, it is where the drawee lends his name for the use of the drawer. Account Current — An exhibit in detail of a running account between two or more parties. Account Sales — An exhibit of the sales of goods disposed of on commission, with the charges incurred thereon. Ad Valorem— According to value. An ad valorem duty is a certain percentage on the first cost or invoice price. Advance — Additional price ; profit ; premium. Money paid on property or goods accepted, or on goods held in possession for security. Adventure — Goods sent to a distance to be sold on commission. Advice — Mercantile intelligence. Alias — Otherwise. Annuity— A sum of money payable periodically, usually yearly. Ante-date — To date before the present time ; to date beforehand. Arbitration — The hearing and determination of a cause between parties in a controversy, by a person or persons chosen for the purpose. A hearing before arbitrators, though they make no award. Assets — Available means tov payment of debts i goods, estate, and indebtedness of others. Assignee — One to whom an atMignment is made. One appointed or deputed for some speoifio purpose. Assignment— Conditional transfer of property to another. The property so transferred. Assignor— One who makes an assignment. II demands before is where the An Atteolimeiit— A oliim on property legally executed. Aune— A French cloth meware, one yard and a quarter. AveraKe-Sums allowed for losses at wa. A medium time found by equation il3-To close an account in the Ledger. Diilerenoe between the debiU «id credit- account in the Ledger, into which all balances are dosed. Bankropt-Insolvent. One unable to pay his debts. [ BUI, or Bill of Paroels-A statement in detaU of goods bought or sold. Bilte— A term applied to drafte, notes, etc. «. BUI of Entry— A list of goods entered at the Custom-house. im oi Bxchangt-Au order for the payment of money : usually appUed to drafts on persons m another country from the drawer. BiU of Lading-A written account of goods shipped, having the signature of the master, agent or purser of the vessel on which shipped. Bill of Sale— A contract under seal for the sale of goods. . . , ^ „# a„^, BiU of Store- A Custom-house Licence for carrying to sea diip-stores and provisions free ofduty. Blank Credit-Permission granted by one house t» another to draw on it a(f ple«iure to a specified amount. Bona fide— In good faith. ,.,.,• *„.-„.» Bond-A note. An obligation or deed by which a P«r«>n binds »^7»«^'' ^" ^^^^^^'^^'''^ administrators, or a company, or corporation bind themselves to pay a oertam sum on or before a certain day.l Bonded Goods-Those for the duties on which bonds are given at the Custom-house. Bottomry Bond- A mortgage or Uen upon a vessel. Brace— A measure of | of a yard. Broker— A money or stock trader. Factor ; agent. Brokerage— A percentage for the purclise and sale of money and stocks. Capital— Stock in trade. Capias— A writ to authorize the seizure of a defendant's person. Cargo— The lading or freight of a vessel. Catty- A Chinese weight of 1} lbs. Avoirdupois. Carrying Trade— The transportation of goods by a vessel from country to country. Charter Party— A written agreement between the owner of a vessel and the person to whom she is chartered. Circular Letter— A printed notice issued by a house, relative to its business. Clearing a Vessel— Entering at the Custom-house all particulars relating to her when she is ready to sail, and paying clearance charges. Clearance- A certificate from a Custom-house that a vessel has been cleared. Closing an Account— Making an entry to balance it, and drawing Unes underneath to indicate that it is closed. Cocket— A Custom-house warrant to show that goods have been entered. Commission — A percentage allowed for the sale of goods. Compound— To settle with a creditor by agreement, and discharge a debt by paying part of ita amount. Compromise — An adjustment of differences by mutual concession. Consignee — One to whom goods or wares are consigned. Consignment — Gk>ods sent to an agent to be sold for the consignor. Consignor — The person making a consignmtot. Contraband Goods — Articles prohibited by the law to be imported or exported. Contrar-On the other side ; opposite. Convoy— Ships of war sailing with other vessels as a protection. Co-partaerahip- The union of two or more persons for purposes of trade. Counter order — A revocation of a former order. Credit — That side of the account which shows the amount due to the person or thing represented. The amount of confidence reposed in another. Custom-houae — The house where vessels are entered and cleared, and where the duties on gooda are paid. Days of Grace — ^The days allowed" for the payment of a bill after it becomes due. In the United States and in Great Britain and her dependencies, the number of days of gra^ie is three ; hut it varies very much in other commercial states, reaching thirty days in Genim, there beiug none aUowed at Leghorn. BiUs drawn at sight are usually paid when pretiented, without grace. 12 Debenture— A writing aoknowledglng a debt, a Bond on which Oompaniea or Munioipalitiefl bor> row money. Debit— That eide of an aooonnt which ehowa the indebtedness of the person or thing represented. Defalcation — Deduction ; diminotiou. That which in deducted or out off. Demurrage— Forfeit money for detaining a Teesel beyond the time specified in her Charter-party. Depot— A plao^ where goods are deposited ; a depository ; a magasine. Deriatioa— The voluntary departure of a Teasel without necessity, from the regular and usual course of the specific voyages insured, which frees the underwriters from obligation. Discount — Any deduction from the stipulated price of goods, or from a sum due or to be due at a future time. Dividend-aains on stock, shares in trade, etc. Dock — A place to build, repair, or lodge vessels. Draft — An order from one person on another for the payment of money ; a bill of exchange. Drawer — ^The one who draws a bill or draft on another. The maker of a note. Drawee — ^The person on whom a bill is drawn. ^ Drawback — Amount paid back. Any loss of advantage, or deduction from profit. > Duplicate— A copy. Duty — A government tax on exported or'imported goods. B. O. Exempli gratia.— For the sake of example. Effects — Moaey, property on hand, and debts due. £11 Flemish (E. Fl.) A measure of f of a yard. Embargo — A restraint on ships by Oovemment ; or prohibition of sailing either out of port, or into port, or both. Emporium — A mart. A t3wn or city of trade ; partioular'y a commercial city. Endorse — To write one's name on the back of a bill ; to become security for its payment. Entry — A record made in an account book. The depositing of a ship's papers at the Custom-house to procure license to land goods. Engross — To monopolise ; to purchase the whole or large quantities of commodities in market, so as to enhance the price. Equity of Redemption — ^The advantage allowed to a mortgagor, of a reasonable time to redeem lands mortgaged. Ex-ofiSoio— By virtue of his office. Exchange — ^The giving of one commodity for aCbother. The place where the merchants, bankers and brokers meet, at certain hours, to transact business. Discount and premium arising from the purchase and sale of bills and money. Ex-parte — On one part. -, Face — ^The amount for which a bill is drawn. Fao simile— An exact copy. Factor — An agent employed by merchants to buy and sell, or transact business on their account. Failure — ^A breaking or becoming insolvent. Favor — A bill is said to be drawn in favor of the person to whom it is payable. Finance, or Finances— Revenue ; funds in the public treasury. The resources or income of indi- viduals. Financier— Oue skilled in money matters. A revenue officer. ^na — The name or title under which a company transacts business ; a partnership, or house. Flat— Low (as in the prices of goods) ; or dull (as to sales). Foreclose— To foreclose a mortgage is to cut a mortgagor off from his equity of redemption. Folio— Page of an aooonnt book ; both the right and left hand pages expressed by the same figure. Freight —Lading ; that which is carried by carriers. Sum charged by a vessel for the transporta- tion of goods. Good Will— Bonus paid for a business. Guarantee, or Guaranty- Indemnity or security against loss ; a pledge for the f uliilment of stipa* lations ; one who binds himself to see the stipulations of another performed. Grace— See " Days of Grace." Gratis.— For nothing. Habeus Gorpus-(a writ in law) you may have the body. Honor — As applied to drafts, means to aooept and pay when due. Hypothecate— To pledge, to give as security- Hypothecated— Pledged, as security for money borrowed. 13 r out of porfc, or a their account. inoome of indi- ip, or house. the transporta- ilment of stipa* Importation-The bringing of goods from another country to one's own country. The oonunodi. ties imported. Insurance— Security against loss. The premium paid for insuring property or Me. InsolvouWNot having money, goods, or estate sufftoient to pay all debts. A debtor unable to pay his debts. Instalment- A part of a sum of money paid, or to be paid, at a particular penod. Interest— A percentage paid for the use of money. International— Relating to the mutual intercourse between different nations. Inyentory- An aooount in detail of property. Invoice -See Inventory. Inventory is generally applied to a catalogue of goods on hand ; Invoice to goods purchased, received from abroad, or about to be shipped. Ipse dixit— He himself said it. Labor Omnia Vincet— Labor conquers every thing. Landing Waiter— A Custom-house officer whose duty is to wait or attend on the landing of goods. Lease— A contract granting possession of property for a stipulated time, ietter of Attorney— A writing by which one person authorises another to act in his stead. Letter of Credit— A letter authorizing one person to receive funds on the credit of another. Letter of Licence— A written permission for a person under embarrassment to conduct his business for a time without molestation. (L.S.) Locus Sigilli— The place of the seal. Letter of Marque— A written commission or authority given by Government to private vessels, to make reprisals on the vessels of another nation. Liabilities— Debts of an individual, or claims against him. Licence — A legal permit to sell certain articles of merchandise. Lien— Legal claim, as a lien upon laud, houses, etc. Lighter— A craft used to lighten vessels in shoal water Lighterage — A charge for carrying goods to and from a vessel in a lighter, Liquidation— The act of adjustic? ''•^^ paying debts. Locum tenens — A deputy or substitute. Manifest— An exhibit of a vessel's cargo. Mandamus- We order ; a law writ. Mart — A place of public sale and traffic. Maturity— The time when a bill falls due. Maximum — The highest price of an article. Merchandise — ^The usual articles of trade. « Metre— A measure of 1 1-12 yards. Minimum — The lowest price of an article. Minutiae — Trifles; minute parts. Mint— A place where money is coined. Mortgage— The grant of an estate in fee, as security for the payment of money. Mortgagor— The person who grants or pledges property for security of debt. Mortgagee — The person to whom an estate is mortgaged. Nem con- Abbreviation for nemine contradicente — Without opposition. Net proceeds —The remainder after deducting all charges from the amount of gross sales. Net weight — The weight of a commodity aftef deducting tare and all other allowances. Nolle prosequi — To be unwilling to proceed. Non-Claim— A failure to claim within the time limited by law. Omission of claim. Notary, or Notary Public — A person legally authorized to attest contracts or writings of any kind ; also to take note of the non-payment of bills, promissory no*''^, etc., which is dSled protesting. Note — A written obligation to pay money ; a memorandum. Obligation — Indebtedness. A bond with a consideration annexed, and ai>enaltyfor non-fulfilment. Obligee — The person to whom another is bound. Obligator— The person who binds himself, or gives bond to another. Order— A request to deliver or pay to a person certain moneys or foods. Any request made of another in writing. Par of Exchange- The intrinsic value of money, when compared with that of other countries, • both in weight and fineness. The nominal value of a pound sterling. Partnership — See Oo-partnership. Payee— The person to whom money is to be paid. Per Annum — By the year. Per Se— By Itself. Pioul— A Chinese weight of l.H.r: Cash. Or. 1886, Jan.'' 1 To Merchandise. •850 LEDGER ACCOUNTS AND EXERCISES THEREON. In Book keeping we name our goods Merchanilise, we call our money Cash, a hou8» and lot Real Estate; these terma used as ledger titles are called accounts. The purpose of the exercises, in connection with the following explanation of the various accounts which occur in the most simple business operations, is to elucidate the initial difficulties of the science. We have found by experience that it is almost impossible to make a pupil who has no knowledge of the subject understand the Journal until he is made acquainted with the nature and disposition of the accounts in the Ledger. How, for instance, can we explain to a beginner such an expression as " Cash Dr. to Stock," but by taking him to the Ledger, and there explaining to him the Cash and Stock Accounts, the manner of keeping them, and the object for which they are kept ? Until he has the Ledger explained to him j in some way, thc'language of the Journal must remain unintelligible to him ; and to this | may be ascribed the ill-success in teaching Book-keeping from some of the most popular treatises in use in our public schools ; in which, after bewildering the pupil with rules and lectures upon journalizing, they conclude with what ought to be first explained, — the I Ledger. A faithful adherence to the ingtructfcris given on the following Ledger Accounts will I enable the learner to record, readily and correctly, the exercifein ccnntction with each; which should be written on a Skeleton Ledger, ruled by the pupil himself, similar to thfr | following form : — 19 T Cr. 1 9860 « tf h 1 1 •? g I 2 Cr. 1 94000 3 O. ON. ey Gaah, a hou8» xplanation of the to elucidate the )upil who has no uainted with the I, can we explain iking him to the nanner of keeping explained to him him ; and to this the most popular pil with rules and it explained, — the ger Accounts will (ction with each; elf, similar to the Cabh Exeroisi. — Commemej business with a cash capital of 98,500. Bought''mer> ohandise and gave in payment cash 91,500. Borrowed of A. B. 830C. Paid rent of store $250. Lent W. Snow 9300. ifold for cash a bill of goor!? amounting to 91,000. ^ Required, The amount of cash on hand ? Dr. Goth. Cr. 98500 300 1000 91500 260 300 Bal. on hand 7750 9800 9800 CASH ACCOUNT. f This account is kept to show the amount of cash received, the amount paid out and the balance on hand at any time. All amounts of cash received are placed on the debit (left hand) side of this account, and all amounts paid out on the credit (right hand) side ; consequently the debit side shows the amount received, and the credit side the amounk parted with. The Balance on Hand is ascertained by deducting the total credit from the^tolal debit. The debit side is always the larger as long there is any cash on hand, since cash must be received before it can be paid out. This account is closed " By Balance." Exercise— CASH ACCOUNT. Cash invested |12,000. Paid for rent $400. Borrowed of George Sherry $175. Paid for ■erdiandise $0,500. Received for merchandise |4O0. Received from Gewge Sherry $100. Paid on our note $250. Received on B. Cannift^'s note 9400. Lent W. Ross $200. Paid George Sherry $275. Lost $100. Received from W. Ross $100. Found $250. Paid for coal $40. Required^ The amount of cash on hand ? MERCtJAl^DlSE AND OTHER SIMILAR ACCOUNTS. The Merchandise account is kept to show the cost and proceeds of merchandise, and, as a consequence, the gains or losses thereon. Merchandise is debited vi\i\i the amount on hand at commencing business and with the cost of all purchases. It is credited with all sales of merchandise ; consequently, the debit side shows its cost, and the credit side its proceeds. When all is sold the diflerence between the two sides will be a gain or loss. If a portion of goods remains unsold, the account must be credited with this bal.ince, prior^to closing, as an off-set thus far against its cost. If the debit side is the larger it is closed "By Loss and Gain; " if the credit side is the larger it is closed " To loss and Gain." Real Estate, Bank Stock, Railroad Stock, Steamboat Stock, Shipment Accounts, and all other speculating property accounts are kept for the same purpose, and treated in the samd manner as Merchandise account. Exercise— MERCHANDISE ACCOUNT. Have on hand merchandise valued at $19,000. Sold for cash, as per sales book, $2,30(1). Sold for note a bill amounting to $3,000. Bought on account bill of cotton $400. Sold A. B. on account bill amounting to $1,500. Sold R. S. on his acce])tance a bill amounting to $2,000> . Bought, as per invoice, broadcloth at $1,500. Sold for cash a bill of goods at $3,100. Value of unsold merchandise $8,450.25. Required, The gain or loss on merchandise ? KoiE.— The rwulta of the ExercUes are givea at page 22. do BILLS RECEIVABLE. By this title is meant all written obligations, of whatever form, in your possession, for which a certain specified amount is to be received. They may be : Ist. A note in your possession, drawn by another person, payable to you, or bearer, or order. 2nd. A note drawn by another person, purchased by you, although not originally made payable to you. 3rd. A draft or bill of exchange drawn by one party on a second, and coming into your possession as a third party, whether accepted or not. 4th. Your draft on another, accepted by him and retained in your possession. The object in keeping this account is, that you may know the amount of other persons' notes received, the aivonA Mtat has been disposed of, and the notes in hand. This account is debited with the amount received, and ^credited with the amount of notes disposed of; therefore, the debit side shows the amount of notes received and the credit side the amount parted with. The debit side is always the larger, if either, and the excess shows the balance of notes in hand. When all the notes received have been disposed of this account closes itself; but, if any remain unpaid, it is closed " By Balance." Exercise— BILLS RECEIVABLE. Have on hand the following Bills Receivable :— R. Gordon's note for $740. J. Dixon's for $800. S. G. Beatty's for $960. Sold A. Wil^n on his note merchandise $680. Received of W. Diamond his note, in full of account $460. R. Gordon paj's cash for his note $740. Sold W. Barber merchandise, and received in'payment hia draft on A. Foster for $400. S. G. Beatty redeems his note for $950. Had A. Wilson's note discounted at the Merchants Bank, face of note $580. Bought merchandise and gave in payment J. Dixon's note $800. Jtequired, The amount of notes on hand ? BILLS PAYABLE. Bills Patablx is a name given to your written obligations or promises to pay, and by which you keep an account with your own notes. They may be : 1st. Your note payable to another person. 2nd. A draft or bill of exchange on you and accepted by you. 3rd. Any bond or obligation in contract, with your signature and requiring payment of you. This account is kept that you may know the amount of your notes issued, the amount taken up or redeemed, and the balance still outstanding against you. On the credit side are entered all notes issued, and on the dtbit side all notes redeemed ; hence the credit foot- ing shows the amount of notes issued, and the debit footing the amount of notes redeemed. The credit side is always the larger, if either, and the excess shows the balance of notes outstanding unpaid. When all the notes issued are paid, this account closes itself, but if «ny remain unpaid, it is closed " To Balance." ^ Exercise— BILLS PAYABLE. Have the following notes outstanding : One in favor of H. Card for $425. One in favor of P. Grass for $600. An accepted draft favor of N. Day for $250. Bought on our note mer- chandise amounting to $750. Sold merchandise and received in payment our note favor of H. Card $425. Paid cash for our note favor of P. Grass $500. Gave Peter Mann our note in settlement of account $376. .Bequiret^, The amount of our outstanding Bills ? 21 ises to pay, and uiring payment Bonds and Mobtoaoeb Bsoeivabli are a class of Bills Receivable, and might be kept under tbat head, but a separate account is oflen opened for them, which is treated precisely like Bills Receivable. Bonds and Mortoaoks Patabls are a class of Bills Payable, and treated precisely like them. Bank. — When a Bank account is kept it is similar in its treatment to Cash and Bills Receivable, the debit side showing the amount of value deposited in bank, and the credit side the amount checked out ; consequently the difference is a balance in bank ; it is closed "By Balance." Expense, Insurance, Charges, Interest and Discount, and similar accounts, are kept to ascertain what they cost you, what they produce you, and, as a consequence, whether you gain or lose thereon. Excess of debit shows a lar^r amount of cost than proceeds, and a consequent loss upon the account ; while excess of credit shows a larger amount of proceeds than cost, and a consequent gain. These accounts are closed " To " or " By Loss and Gain." Exercise— EXPENSE. Paid for clerk salary, $425. Paid gas bill, |30. Paid rent, $200. Paid for postage, $5 ; revenue stamps, $2. Paid for stationery, $40. Paid freight, $15. Beqwred, The loss on incidental expenses ? PERSONAL ACCOUNT. Accounts are kept with persons to show your business dealings with them. A person is debited when he receives value from you ; in other words, when he costs you value, and he is credited when he produces you value in any way. Therefore, whenever you do a job of work for any person, or sell him anything, or pay him money, or he in any other manner becomes indebted to you, he must be charged (or debited) with the same, to show that ha owes , you. And whenever any person sells you anything, pays you money, or does work for you, or you in any other manner become indebted to him, he must be credited with the same to show that you owe him. The debit side of a Personal account shows the amount of your account against the person and the credit side shows the amount of his account against you. The difference shows the balance either due' you or due him. These accounts are closed either " To Balance," or " By Balance." Exercise— PERSONAL ACCOUNTS. Open an account with each person interested, viz. : Robert Jones, A. Brown, James Smith, and Thomas Graves. Robert Jones owes us $5,000. Received on account of Robert Jones, $300. Sold merchan- dise to A. Brown, on account, $1,500. Lent James Smith $750. Bcflrowed of Thomas Qraves $800. Sold merchandise to Robert Jones, on account $3,000. Received on Robert Jones' account his note for $1,500. Received of A. Brown, on account, cash $700. Received of J. Smith, cash $750. Received on Robert Jones' account, John Jones' note for $2,000. Drew a draft on Robert Jones for balance of his indebtedness $ Jtequired, The standing of each of the personal accounts named ? Stock, as a Ledger title, means simply the proprietor of the business. It is your : representative when oonductiog business without a partner, and is used instead of your , own name. Debts at starting, sums drawn out during the continuance of business, and net' loss at I closing, are placed upon the debit side of Stock. Effects invested at starting, sums invested 22 during'Jthe business, Rnd net gain at closing, are placed upon the credit side. After receiv- ing the gains or losses, if the credit side of this account is the larger, the difference or excess is your net capital. If the debit side is the larger, tlie excess is your net iniolvency. It is closed^' To," or «'By Balance. " Where more than one proprietor is represented, an account is opened for each, and the net investment or insolvency of each proprietor is shown in the same manner under his proper name. Invbwmknt— Single Proprietobship. — Invested in business, f 9,000. Assumed to pay from the business a private debt of S450. Drew out for private expenses, (675. The gains during the year amount to 98,000, which are retained in the business. Sequired, The proprietor's net wortii at the end of the year ? Investment— Partnership. — A. and B. are partners. A. invests in cash $6,000, B., in stock, fixtures, etc., $8,500. A. draws out for private purposes, $475. The concern agrees to pay a perbonal debt of|B,'H of |800. A. adds to his investment $1,000. The net loss during the year amountb to $1,200, each partner sharing oquaUy. ;ai. Sequired, Tiie standing of each partner at the close of the year? 4 RESULTS OF PRECEDING EXERCISES. Cash— Total Debit $13,425 " Credit 7,765 On hand 5,660 Merchandise— Total Debit 20,900 " Credit 20,350 25 Net loss 549 75 Bills Receivable- Total Debit 3,920 " Credit 3,070 On hand 850 Bills Patablk— Total Credit 2,300 " Debit 925 Outstanding 1,375 Expense— Total Debit 717 " Credit NetloES 717 Robert Jonks— Total Debit .. * «,U0O " Ciedit 8,000 A. Brown— Total Debit 1,600 " Credit 700 He owei ms ^.. SCO James Smith— Total Dobt 750 J' Cie'.it 7.')0 Thomas Graves — ^Total Credit S(J0 " Debit I owe him SCO 28 fiTOCK— Total Credit $17,000 " Debit 1,125 Net worth , 15.875 ^' A."— Total Credit 7,000 " Debit 1,075 Present Worth 5,925 «' B."— Total Credit 8,600 " Debit 1,400 Present Worth ' 7,100 Questions Koa Review. CHAPTER I. What is Book-keeping? How many digtinct methods of keeping accounts arc there ? What is the distinction between Single and Double Entry ? Why is the Double Entry isystem to be pre/erred ? What greii t feature of Double Entry particularly recommends it to business men ? What do the term^i "Debtor" and "Creditor" signify? What does an entry on the Dr. side of an account signify? What does an entry on the Or. side of an account signify ? What are the main books used in Double Entry ? Describe the Day Book. For what is the Journal used ? What is Posting ? What is the Ledger ? and ■what is its principal use ? What are the advantages of keeping personal accounts in the Ledger ? Whs t is an account, as used in the Ledger ? What is the object in keeping a Cash Account in the Ledger ? When are entries made on the Dr. and when on the Cr. side of this account ? How is the Cash Account closed ? How are Merchandise and other similar accoui-.ts closed ? Define Bills Receivable. Of what may Bills Receivable con- sist? What is the object in keeping this aocoaat? How is it kept? Define BiUs Payab!(. Of what may Bills Payable consist? What is the object in keeping this ai oLiut? How is it conducted and closed in the Ladger ? For what purpose are accounta •of Expense, Insurance, Charges, Interest and Discount kept ? and how are they closed ? Describe the object and manner of beeping Personal Accounts. What does the Dr. side of a personal Account show ? What the Cr. side ? Define " Stock " as a Ledger title. How is the Stock Account conducted and closed. CHAPTER II. DOUBLE ENTRY. We introduce the learner, at once, to Double Entry Book-keeping, omitting any special instructions in Single Entry until the student has become familiar with ihe prin- 'Xiphsofthe formar system, for the reasons, first, that we do not desire to distra'it the mind from the more important considerations bearing upon the science of accounts ; and secondly, bjoause a student who has mistered Double Entry requires nothing more than a perusal of Single Entry to understand it. In Double Entry Book-keeping accounts are kept not only with individuals, but also with different kinds of property, and with the diffjrent bran;;he3 of gains and losses ia • l>usinesa. 24 PttsineBS transactions consist in exchanging various forma of value. Among these are Merchandise, Real Estate, Cash, Personal Debts, Written Obligations, Service, etc. Ii» many kinds of business it is necessary that the amounts of these different forms of value in possession, as they exist at any one time, may be readily and easily ascertained ; also how much is due to others, and how much has been paid out or received for any particular - purpose. This information is required in order to know the exact condition of affairs, and to have a correct basis upon which to plan any future enterprise. To obtain the informa- tion frilly, an account must be kept not only with the persons with whom business is trans- acted, but also with every form of value exchanged and with every source of receipt and expenditure. The distinguishing feature in Double Entry consists in carrying out a mathematical principle of equilibrium, under the titles of debtor and creditor. The variations introduced in the manner of working the following sets are merely peculiarities. The particular method or form in which books are kept is not essential, as long as they conform to the principle of equal debit and credit. The forms in use in business houses vary according to the nature and extent of the busineets. In a small retail store a record showing the amounts which are due from persons who have purchased on credit is by many considered sufficitnt. In some cases an authentic record that can be used as evidence is all that is wanted ; in others the workings of each series of operations, the results of each series of income or loss, and the comparative value of different undertakings must be fully set forth as a basis for future plans, and to deter- miiie what is requisite for the safe and successful conduct of affairs. A system of checks against omissions, mistakes and frauds is also in many establishments indispensable in order to guard against errors and serious losses. Without an accurate set of books proceedings must be upon vague and possibly erroneous conclusions, the result of which may be insol- vtncy and bankruptcy. The qualifications necessary to keep books properly will therefore depend very much upon the kind of business for which the books are required. In any business a knowledge of certain principles is indispensable ; and a comprehensive acquaintance with the science of accounts will give many facilities and advantages not possessed by those who have nO' knowledge ercept what they have gained from a contracted routine of petty details. The principal books used are the Diiy Book, Journal and Ledger, The Auxiliary- Books vary according to the nature of the business, and are the Cash Book, Bill Book^ Invoice Book, Sales Book, Letter Book, Receipt Book, Account Sales Book, etc. The form and number of the auxiliary books used depend in all cases upon the nature of the business transactions ; but as a knowledge of the auxiliaries is easily obtained it is not thought best to encumber the mind of the student with them at first, and they are accordingly omitted until a subsequent part of the work. DIRECTIONS FOR JOURNALIZING. Journalizing is ascertaining the proper Drt. and Crs. of business transactions recorded' in the Day Book, and writing them in the Journal. This requires thought and study. Whenever a tracsaction occurs the book-keeper should reflect for a moment, and see what, part of the property is affected by that transactio;ij and then the accounts that represent that property are the accouats to be made Dr. and Cr, Every Dr. mutt have a conetpondinjfi 25 aoDg these arcr rvice, etc. I» ma of value ia ned ; also how any particular- 1 of affairs, and a the informa- siness is trans- of receipt and i mathematical lets are merely lot essential, &» d extent of the le from persons jes an authentic orkings of each mparative value 8, and to deter- ystcmof checks reusable in order oks proceedings h may be insol-- lend very much jess a knowledge ith the science i who have no' details. The Auxiliary lok, Bill Book, ; etc. cases upon the easily obtained it, and they are IctioDR recorded' ;ht and study. and see what. [that represent I coneapondingi Cr. of equal amount, ancT every Cr. muit have a corresponding Dr. of equal amount. If the transaction takes from the one part of your property and adds to another, the account from which it is taken is made Cr. and the one to which it is added is made Dr. ^Vhen- ever you' buy property, the acccunt representing that property is made Dr. to what you give I in payment for it; or, if you buy it on trust, it is Dr. to tbe person that trusted you : and i when you sell that property it is made Cr. by what you receive in payment for i't ; or, if it ; is sold on credit, it is Cr. by the person trusted. For example, if you buy merchandise of A. Brown on account, $500, Merchandise I would be Dr. to A. Brown $500, and A. Brown Cr. by Merchandise, $500. If you pay him cash for it, Cash would be Cr. ; if your note, Bills Payable would be Cr, Or if you .sell merchandise on account to J. Meudell, he would be made Dr. to Merchandise, and Merchandise Cr. by J. Meudell. If he paid you cash. Cash would be Dr., or gave you his note, Bills Receivable would be Dr. If you gave your note to A. Brown on account, he would be made Dr. to Bills Payable, and Bills Payable Cr. by A. Brown. When you redeem that note with cash. Bills Payable would be Dr. to Cash, and Gash Cr. by Bills Payable. If J. Meudell gives you his note on account, Bills Receivable would be made Dr. to J. Meudell, and J. Meudell Cr. by Bills Receivable. When he redeems that note with cash. Cash would be Dr. to Bills Receivable and Bills Receivable Cr. by Cash. Journalizing is considered the most scientific part of book-keeping, but will not be found difficult if you understand the following : Rule for Journalizing — " Debit what costs value, or the thing received." " Credit what produces value, or the thing parted with." The above rule is the Key to the principle of Double Entry Book-keeping, and a good' I understanding of it at the commencement will save time and many vexatious moments as- j you become further advanced. Those persons are Debtors who owe us. Those persons are Creditors whom we owe. EXERCISES IN JOURNALIZING. Transactions. 1— Bought of S. G. Beatty, on account, mdse. amounting to $4,500. 2— Sold W. B. Robinson, on acct, md8«!., $750. 3— Paid S. G. Beatty, cash on account, $400. 4— Received from W. B. Robinson, cash on account, $500. 5 — Sold Geo. Sherry, on his note at one month, mdae., $200. 6— Bought of S. G. Beatty, on my note, mdse., $800. 7 — George Sherry has paid his note in cash, $200. &— Paid my note to S. G. Beatty in cash, $800. ; 9— Received from W. B. Robinson cash to balance his acTt., $250. 10— Bought of F. Rous, mdse-, $2,000. Gave in payment n'.y note for $1,000, and cash for the balance, $1,000. U— Sold R. Gordon, mdse., $800. Received in payment his note for $503, and cash for the balance, $300. Journalized. 1— Mdse. Dr. $4,500 To S. G. Beatty $4,500' 2— W. B. Robinson, Dr. 750 To Mdse., 750- 3— S. G. Beatty, Dr. 400 To Cash, 40O 4— Cash Dr. 500 To W. B. Robinson, 50O 5— Bills Receivable Dr. 200 To Mdse., 200' 6— Mdse. Dr. 800 To Bills Payable, 800 7— Cash Dr. 200 To Bills Receivable, 200 8— Bills Payable Dr. 800 To Cash, 80O 9— Cash Dr. 250 To W. B. Robinson, 250 10-Mdse. Dr. 2.000 To Bills Payable, 1,000 " Cash, 1,000 11— Bills Receivable Dr. 800 Cash «' 800 To Mdse. . 80a \x •* 26 • RECORD OF TRANSACTIONS. A Business Tbansaction consists nominally in an exchange of values ; and each complete record of a transaction is based upon the theory that something is received and something given. This theory, however, is not always literally, though it may be con- structively, true. One unvarying condition of a transaction is that its complete record requires at least tioo entries — one to the Debit of some account, and one to the Credit of some other account. Frequently, however, the record may involve more than two accounts ; but under any cir- cumstances, the sum of the debit and credit entries must be equal. Preserving the equality of debits and credits, the records of a transaction may require any of the following four forms : 1. One Debit and one Credit. 2. One Debit and two or more Credits. 3. Two OR MORE Debits and one Credit. t 4. Two OE MORE Debits and two or more Credits. The main object of a business record is to show at any time the con n of the busi- ness ; in other words, what the concern is worth. Inasmuch, moreover, as the real or net worth of a concern is the difference between its jvoperty and debts, it follows that any adequate system of business record must secure the ready means of ascertaining therie necessary items. Tlie following Set is worked out in full, in order to show the pupil the proper form of carrying the transactions through the different books, and should be thoroughly understood in every particular before proceeding further. The transactions are first taken from the " Record," which is supposed to be a momo- randum of the merchant's business transactions in the date and order of their occurrence, and arranged properly in the Day Book, after which they are journalized and posted. A faithful adherence to the foregoing instructions and applications will enable the pupil to record, readily and correctly, the following exercise, which should be first written on skeleton paper prepared for that purpose, or on blank paper ruled up by the student himself ACCOUNTS 10 BE OPENED IN LEDGER. VriTH NUMBER OF" LINES REQUIRED FOR EACH. Fur the benefit of the student, and in behalf of economy in the use of Ledger paper, we give below the number of lines required for each account in the nine following Sets. This apportioument, it will be borne in mind, provides for the Ledger Headings, and also for the w^cessary space to close up the accountsin due form. . Sit I. — Stcok 6, Cash 14, Flour 9, Wheat 14, Bills Payable 10, Bills Receivable 8, James Rimmer 9, W. Lingham 6, Robert Thompson 7, H. Corby 7, James Miller 5, Expense 6, Loss and j Gain 9, Balance 12. Sbt II.— Stock 9, Cash 18, Merchandise 20, W. L. Hamilton 10, Sanderson & Co, 9, A. H. Skinner 9, B. M. Carman 10, R. S. Thompson 8, Expense 12, Loss and Gain 10, Balance 13. •Sjct III.— Stock 9, Cash 17, Merchandise 16, Bills Payable 10, BUls Receivable 11, Muir 4 Go. 9, Geo. Sherry 9, S. G- Beatty 9, H. Warren 8, Thomas Moore 10, Expense 12, Loss and Gain j 10, Balance 12. £bt IV.— Stock 9, Cash 15, Merchandise 16, Bills Receivable 11, Bills Payable 11, G. 8. Tickell 8, Jakes & Hayes 9, G. W. Maybee 8, H. Corby 8, Expense 11, Interest 8, Loss and Gain 11, | Balance 10. *«T V. —Stock 8, Cash 25, Bills Rocoivable 10, Bills Payable 9, Merchandise 23, J. W. Campion 9, | L. W. Yeomans 9, Ames, Holden 4 Co. 10, F. M. Clarke 8, W. T. Tilloy 8, Shipment to Tilley 8, Interest 4 Discount 10, Expense 12, Oat. Trans. '^:>. Shares 5, Loss 4 Gain 10, Balance 18. jtion may require )8ed to be a momo- 27 Isbts viand VII (under flame headings)— Student, 13; James Fenwick.lO; Cash, 27; Merchan- dise, 18 ; Bills Receivable, 13 ; Bills Payable, 13 ; Furniture, 9 ; Expense, 11 ; Rent, 12 ; Insurance, 12; Montreal Bank, 26; Jones & Co.'s Consig't No. 1, 10; W. B. Robinson, 10 ; Jones & Co.'s Consig't No. 2, 10 ; Charges, 14 ; Commission, 14 ; Jones & Co., H ; W. West's Consig't No. 1, 9 ; Jones & Co.'s Consig't No. 3, 9 ; H. Holden, 8 ; W. West's Consiz t No. 2, 9; Jones & Co.'s Consig't No. 4, 9; Interest and Discount, 10; W. West, '»; bol«- I nion Johns, 8; Good Will, 8; Loss and Gain, 18; Balance, 11. Set Vin (Single Entrv) and Set IX, under same headings— J. S. Miller, 9; F.Lane, 9; J.K. ' Marvin, 8; Vf. McKay, 12; Robert Carev, 13; James Goo«iwin, 13; H. Simmons, 13 ; Additional accounts after opening Set IX ; Cash, 9 ; Merchandise, 13 ; Bills Receivable, 12 ; Bills T>ayable, 9 ; Real Estate, 8 ; Expense, 9 ; Interest and Discount, 8 ; Shipment to B. Way, 9 ; Loss & Gain, 9 ; Balance, 11. Sot 1. , PRODUCE BUSINESS. In making the entries in the Day Book leave a line between each transaction, putting (the date over it; and in making an entry of several items take a line for each item. It is expected that the student will not merely copy the exercises in connection with [this Set, but that he will work them out for himself according to the forms given. RECORD OF TRANSACTIONS. Quebec, January 1, 1885. Commenced business, inve-ning as follows Cash : .... 500 bbls. Extra Flour, at $6.00 800 bush. Pall Wheat, at $1.25 1. 2— Bought of W. Lingham, for Cash, 50 bbls. Superfine Flour, at $6.00 " Sold James Rimmer, on acc't, 100 bush. Fall Wheat, at $1.50 " Bought of H. Corby, on my Note, 200 bush. Spring Wheat, at $1.00 3— Sold Robert Thompson, on acc't, 400 bush. Fall Wheat, at $1.50 " Bought of W. Lingham, on my Note, 100 bbls. Superfine Flour, at $6.50 . " Bought of James Wilson, for Cash, 200 bush. Fall Wheat, at $1 .50 « 4— Sold John Smith, for his Note, 100 bush. Fall Wheat, at $1.75 " Received of James Rimmer, on acc't. Cash .... 5— Bought for Cash, 400 bush. Fall Wheat, at $1.40 " Sold James Johnson, for Note, 100 bush. Spring Wheat, at $1.20 6— Bought of fl. Corby, on account, 50 ^bbls. Extra Flour, at $ 6^00^. . . " Sold James Miller, on account, 200 bbls. Extra Flour, at $6.50 .... " Sold for Cash, 100 bush. Spring Wheat, at $1 .25 .... 8 —Sold James Rimmer, on acc't, 200 bu=g in the narrow column to the left refer to the paaei of the Jonmal upon which the tranaactlone have t>een joiuualized, and should be placed In the Day Book, opposite the transaction, imme- diately after the Journal entry is made. This is called foliolng, and serves the purpose of reference from one book to another, as well as Indicatine that the entry has been transferred. If soodA iiave been vhart{«a in Uav Bool[,|and the customer pay for them before the entry has been posted, last mark r it lo in the margin la a bold hand, and ^ut the money fn the till, to be counted with that day^i Caab 29 Quebec, January Gth, 1885. ; through the )k according to aper journalize 1 to see if you ions on posting .tements : — ry Ist, 1885. 60 00 00 $8000 300 150 200 600 650 300 175 100 560 120 3000 1300 16456 60- oa OO OO 0» OO 00 oa OO 0» oa 00 00 .60 LbI upon which th* EraDtactloD, imme- lenoe troni one hook . hM be«n pocted, itbthatday^iCatlk 31 31 31 31 31 31 31 31 31 31 31 30 Amount brought forward, Sold for Cash, 100 bush. Spring Wheat 8 1 26 30 Sold James Rimmer on account, 200 bush. Fall Wheat 1 40 30 Received of James Miller his Note, in full of account 9 30 Paid Cash for Sundry Expenses, 31 Sold Robert Thoinpson on account, 250 bush. Fall Wheat 10 1 50 31 Bought of W. Lingham on account, 450 bush. Spring Wheat 1 00 31 31 Paid H. Corby Cash on account, 11 Sold Robert Brown, 380 bush. Spring Wheat, 1 00 Received in payment his Note, Cash for the Balance, 12 Bought of W. Linguaiu on my Note, 60 bbls. Extra Flour, « 6 30 Paid Cash for my Note of the 3rd in'^t. 13 Sold J. Rinimer on account, 200 bbls. ijxtra Floui, 7 00 15 Paid Cash in full for my Note, favor H . Corby Received of R. Tliompson, Casli in full of account, Received Cash in full for John Smith's Note of the 4th instant, 16 Gave H. Corby my Note on account, 17 Bought of W. Lingham on account, 650 bush. Spring Wheat, 1 00 Sold James Rimmer on account, 150 bbls. Super. Flour, 8 00 Received Cash in full for J. Johnston's, Note of the 5th inst. 18 Paid Cash for Sundry Expenses, •Inventory of Goods unsold : Flour, Wheat, Total, 150 230 3915 1120 $5035 i $16456 126 280 1300 26 375 450 1000 380 315 650 1400 200 975 175 1000 550 1200 120 140 26116 60 00 00 00 50 09 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 the cost of good, in the purohasiuK marliet^r what U^ouTd cost to reVren'^l^ them ^^^ '**"**""* "' ""^"^ " v^'v ■■£' &' •"< 30 SPECIMEN JOUBNAL. Some business men require their Journal to emlody brief explanations of their trane- aotions ; but we do not introduce this plan now, because, in his incipient steps, everything that takes the learner's attention off the LEDGER TITLES has a tendency to perplex and embarrass him. Familiarity with the following form wiil prepare the student for using any other without di$culty : Quebec, January Ist, 1885. 34 34 U 34 34 34 35 34 34 34 35 34 34 34 34 34 35 34 34 35 34 34 35 34 34 35 35 34 34 34 35 34 35 35 35 34 Cash Dr. ' Flour " Wheat " To 8to<;k, 2 »-3 28 28 28 28 28 28 28 28 28 28 28 28 28 29 29 29 29 $4,000 3,000 1,000 300 150 200 600 650 300 175 100 660 120 3,000 • 1,300 125 280 1,300 26 60 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 60 $8,000 300 150 200 600 650 300 175 100 660 120 3,000 1,300 125 280 1,300 25 60 Flour Dr. To Cash, « OOf James Riminer Dr. To Wheat, If oo Wheat Dr. To Bills Payable, 3 00 Robert Thompson Dr. To Wheat, 00 Flour Dr. To Bills Payable, it oa Wheat Dr. To Cash, 4 00- iSills Receivable Dr. To Wheat, i( 00 Ca.sh Dr. To James Rimmer, 5 QQj [ , Wheat Dr. To Cash, cc Otf Bills Receivable Dr. To Wheat, 6 Flour Dr. To H. Corby, « 00 00 00 oo 00 00 50 00 - Jamea Millar Dr. To Flour, Cash Dr. To Wheat, 8 James Rimmer Dr. To Wheat, Bills Receivable Dr. To James Miller, 9 Expense Dr. To Cash, Amts. carried forward. 17,186 00 17,186 NOTB.— The ngureB In ttie narrow columns are the pnges of the Day Book and Ledger ; those to the left are Ledger foUcs, and ttioso to the right J>av-Book folios. By the latter we ire enabled to refer readily to the boolc of origiual entry, and by the former to the Ledger account. 81 Quebec, January 9th, 1885. ions of their tram- 1 t st«ps, everything ■ jndency to perplex ■ re the student for ■ iry Ut, 1885. ^ 35 34 34 35 36 34 35 34 34 34 35 34 34 35 34 34 34 34 35 34 35 35 34 34 35 35 34 34 35 35 34 . AmtB. brought forward. Robert Thompson Dr. To Wheat, 10 i.U 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 $17,186 375 460 1,000 150 230 315 660 1,400 200 976 175 1,000 650 1,200 120 140 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 $17, J75 00 00 • Wheat Dr. « To W. Lingham, 450 1,000 880 315 650 1,400 200 976 175 1,000 550 1,200 120 140 oa II $8,000 900 150 200 600 650 300 175 100 560 120 3,000 1,300 125 280 1,300 25 50 00 00 00 00 00 00 00 00 00 50 OOi oo 00 00 00, 00' 00 00^ 00 00 00 H. Corby Dr. 11 Bills Rec. Dr. Cash'. 12 Flour Dr. « To Cash, o(y To Wheat, To Bills Payable, OO' oo Bills Payable Dr. 13 To Cash, 00 ► J. Rimmer Dr. 15 To Flour, To Cash, oo ) Bills Payable Dr. o;> [) Cash Dr. To R. Thompson, oo > Cash Dr. 16 To Bills Receivable, To Bills Payable, 00 ) 00 H. Corby Dr. 17 00 1 00 Wheat Dr. « To W. Lingham, oo 00 J. Rimmer Dr. To Flour, 00 00 00 00 00 00 60 Cash Dr. • 18 Expense Dr.^ To Bills Receivable, 00 To Cash, 00 00 oo $2fi,llfi 00 ■fluMu 1 ■' '^ Specimen of Day Book and Journal on same, or opposite pages of one Book, hi Book and Journal entries directly opposite each other. loiujf the Da;/ 00 00 60 "oo" 3 3 3 DAY BOOK. 1st 300 150 200 00 00 00 34 34 35 34 34 34 JOURNAL. 1st 28 28 jr. 28 800 150 200 00 3 00 1 00 2 00 50 00 B'ht of W. Lingham for ca?h 50 bble. Flour |6 00 2nd Flour Dr. To Cash, 2nd 00 Sold J. Rimmer on acct. 100 bush. Wheat $1.50 J. Rimmer Dr. To Wheat, << 00 17,186 00 ftRmi«Vi*rt^TJ P,^»U« rt« „ XT^*rt TirV.«o* TA« Hefei lose to the leadily to t left are ■ tie book ■ 200 bush. Spring Wheat $1.00 T( 3 Bills Pa oo 32 LEDGER. You have now Gnished the most difficult part of your task, the problem being solved, for each Debit you have found a corresponding Credit. This, in the main, is the science of Double Entry Book-keeping, the remaining part being considered as a mechanical opera- tion. The' Journal items having been prepared, you will now carry them to the Ledger '«r post them. Posting — Each different account found in the Journal must have a place in the Ledger, and the carrying to that account from the Journal all for which it is Debited or Oredited is called posting. The Ledger is usually opened by placing Stock,* or the partners' names, at the beginning, in a clear text hand, followed by the most prominent accounts, 'such as Gash, Merchandise, Bills Payable, Bills Receivable, etc., as shown in Model Ledger. Insert the abbreviations Dr. and Cr. at the top of the page only. In expressing the entry upon the Ledger it will be seen that a debit is always " To " that account which receives credit for ( « " Cash, " J. Rimnier, " R. Thompson " Sundries, 30 150 30 600 30 175 30 120 30 125 30 280 31 375 31 380 00 00 00 00 00 00 00 00 /•My Notes \ Vredeemod./ BILLS PAYABLE. ('My NoteiN \ issued. } Jnn 12 To Ca-h, 31 65 00 Jan. 2 By Wheat, 30 200 00 « 15 <• >t 31 200 00 (C 3 " Flour, 30 660 00 (( 12 K (( 31 316 00 41 16 " H. Corby, 31 1,000 00 To tlie Student : observe the aiialysi s of the accounts and study them thoroughly. * The analysis of Flour and Wheat is the same as Merchandise. «*) Cr. 18,000 60 300 00 300 00 660 00 26 60 1000 00 660 00 200 00 140 00 150 00 600 00 175 00 120 00 126 00 280 00 375 00 380 00 200 00 650 00 315 00 1,000 00 86 • Da. /OtheiD* Kotes\ ^ received. J BILLS RECEIVABLE. (""'Srorc^fe^lST'") Cr. 1885 1886 S Jan, 4 To Wheat, 30 |175 00 Jan. 16 By Cash, 31 9176 00 <( 5 tl f( 30 120 00 << 17 <• (< 31 120 00 « 8 « J. Miller, 30 l,.3fl0 00 i< 11 « Wheat, 31 160 00 / My Acct. \ \agaliiBt him./ JAMES RIMMER. CL'lmo.) .Tan. 2 To Wheat, 30 150 00 Jan. 4 By Cash, 30 100 00 the Ledger. There will remain but two eiiances of errors in the accounts, viz., from improper Journal entries, or from posting to the wrong accounts in the Ledger. It will be obsfsrved from the foregoing remarks that the Trid Balance is not always a strict proof of tiie correctness of the work, though it is so nearly a test, that, under ordinary circumstances, it may be considered satisfactory. A Trial Balance may be taken with the diif ;rence columns only (sec the municipal set), or with the amount coluums only. The former is very frcqu^uly used in business. In a real busin 'ss, a Trial Balance may b.; taken monthly (see form ot monthly Trial Balance), and sliould be t ikon us oft ni as oiicj in throe m inths, even tiiough the books are closed but once a year. Never atteiupt to clo.se a sot of books that are out of balance. The error, or errors, will be found somewhere by careful, patient checking. When a book- keeper first takes charge of a set of b )oks that have previously been kept by another, he should tike off a Trial Balance to prov-j if the Ledger is in balance. If not in balance he should find the errors before making ?;Wj tiitries in it. TIUAL BALANCE- Set I. Dr. Bal. Dr. Footings. i^ ■U $2550 00 $5725 50 u AMnr, 00 72(55 0(1 :u 855 00 :<0(iO 00 u 850 00 :\\ 11.50 00 1745 00 ;i5 2y;iu 00 3030 00 3,-) 2000 00 :!5 lt?5 50 105 50 :!5 li;U5 ! 50 23K4 1 00 . ACCOUNT B. Cr. Footings Stuck ;$8000 Cash ji H175 Flour 3900 Wheat '] 2205 Hills Puvable I 2lfi5 Bills 'teeeival.le ....i 295 James Uinioier \V. Ijinghaiii . .. H. Corby Expense 100 lOOO 3000 50 50 00 00 00 00 00 00 00 23841 00 Cr. Hal. gsOOO 1315 1000 1000 11315 50 00 00 00 60 NiiTK.— 'llie Ledger from which tlie foregoing Trial Italiince was taken does not contain all tha results of tlio business. Hence, In getting at the data from which to ascertain the net worth, or the net gain or loss. It will be | necessary to go beyond the I.eunts .showing only the cntt and proceeds from sales of property havinj? a variable value, it follows t!iat the reid value of such property remaining on hand can be ascertained only by actual enumeration mid valuation, a process known in business as "taking account <>f . Ptock," or " taking an inventory." The value of property which does not vary, viz., Cash Notes, and Personal indebtedness, is readily ascertained from the accounts them.«elves. In classifying accounts, or specific results, two grand objects are kept in vi»'W, which arc, 1st. The net g'lin or loss during a specified time ; and, 2nd, The net worth or insolvency of the business. The processes of arriving at these results are distinctly indicat«d above. The chtKsijicd stat*;ments whieli follow only present them to the eye in a Cf)U8Ccutive and logical form. Note.— It it neccBsary that iJiea'udeiit should uiuleratAiid well the clftgeeB Into which accounts nredlvidoU ; to attaiu this, etudy carefully tlio explanatioue, on {iago39, andaUo the subJoctB on page 40. I.— STATEMENT OF LOSSES AND GAINS. (for the purpose of ascertaininq the net gain or loss.) . $.391.5 LOSSES. GAINS. Flour, imsold per Inventory " Cr. or proceeds from s::le.s 3iKK) " Total proeeeils I.Sh) " Dr. orcost I'Km " Difference or R.iln , ."-iSO Wheat, unsold per Liventory 11'2(> " Cr. or proceeds I'loni snUs 2-205 *' Total proceeds ;v3->.i " Dr. or cost , .'ludo " Difference or gain Expen.se, Dr. or outlay, a loss 165 50 265 " Difference hetioeen Gains and Losses or Net Gain •64!) 50 00 • «815 ««15 00 The material for this and the following Statement is found in the Trial Balance on p.ige .36 , exneiit the value , of unsold property, whlehistaken fromthe invantorygivenattheendoftho Day Book," page iRi. The procow of working it is so simple it does not require an explanatiou. * Italics indicate red luic . 38 STATEMENT OF RESOURCES AND LIABILITIES. {Analytu of Acrountx thnt shorn Resources and Liabilities, for the purpose of ascertaining thf Net worth or net Insolvency of th^i Business.) 1. — From Inventories .. 555725 50 .. 3175 50 RESOURCES. LIABILITIKS. Flour unsold, BB per Inventory Whuat " " " 2. — From Ledger Accounts. Cash Dr. Amount received " Cr. " paid out 3915 1120 2550 1450 2930 00 00 00 00 00 1315 1000 10-10 «8650 Difference amount on hand Bir.LS Payable Cr. My notes issued " " Dr. " redeemed " •' Difference my outstanding notes... Bills Receivable Dr. Other people's notes received... " " Cr. Otlier people's notes disposed ... 2165 00 ... 850 00 on • • • ... 1745 00 ot 295 00 " " Difference other's notes on hand... James Rimmer Dr. My acct. against him " Cr. His " " me .. 3030 00 .. 100 00 " " Difference ho owes me W. Lingha.Ti Cr. His Acct. against nio — I owe him.... H. Corby Cr. His Acct. against me " Dr. My Acct. against him .. 3000 00 . 2000 00 01) Difference I owe him * Stock's net investment •' " Gain per statement " " Worth .. '8000 50 .. 649 50 00 00 Proof 11965 (>oJ 11965 0. Questions for Review — CHAPTER II. Ofwhatdoesa business transaction consist? Upon what theory is it based? Is this theory always literally true ? How many entries docs the complete record of a transaction require ? Mention the four forms the records of a business transaction may require. What is the main object of a business record ? In what books are business transactions first recorded ? What is the main feature of Book-Keepinj; hy Doubh; Entry V How is the Ledger usually opened ? What does the term " Stock " stand for ? What other term would better express the nature of the Acc't ? Mention some of tlie most prominent accounts found in the Ledger. What is an Index to the Ledger ? What 'm the principu object in keeping it ? When an account is transferred to another page whj\t should be obstTved ? What is the first thing to be done after the transactions of a set have beiJi I)03tcd ? How is this accomplished. Why is a Trial Balance taken ? Is the Trial Balance always a proof of the correctness of the work ? How often should a Triiil Balance be taken ? How can the real value of property on hand be ascertained ? What is this process called in business ? In classifying accounts what two grand objects are kept in view? Analyze each of the Accounts on pages 34 ntid 35. •Red Ink, 39 iS. ucertaining thf CHAPTER III. ^8. LIABILITIKS. 10 (0 K) K) K) 1315 1000 1000 «8()r,o 00 01) 00 00 0^ 11965 0;' It based ? Is ) record of a iinaaction may Ls are busineBs )oubl(! Entry '! What other lost promiaeut a tlie priiicip.i .'it should be set have bei^n Is the Trial lould a Trial uod ? What d objects arc CLASSIFICATION OF ACCOUNTS. The science of Double Entry Book-Keeping is by far more subtle and philosophical, in its theories and applications, than would appear from any of the fallible or infallible rules which authors claim as encompassing it. The mere fact of the balance or equilibrium ot debits and credits, which is the inevitable condition of each complete record of a transaction — and so, of course, of the sum of any number of transactions — is interesting and impor- tant only as it points to other and more vital truths. The Science of Equations, which so aptly applies in each distinct entry, has a broader application to the entire subject of Wealth, which lies at the very foundation not only of business record, but of business itself. • It has been clearly shown, in the preceding exercises, that the results of transactions may be readily grouped or classified so as to exhibit distinct facts, each important iu show- ing the condition of the business ; as, for instance, the amount of cash on hand, as shown in the Cash account, other peoples' notes on hand, as shown in the fiills Receivable account ; our outstanding notes, as shown in the Bills Payable account; the gain or loss from dealing in goods, as shown iu the Merchandise account, t^c, etc. We have also given in the preceding statements a form for gathering up these separate facts, and, by a proper combination and comparison of them, exhibiting the grand results which lie at the end of all faithful records, viz , the exact present condition of the busi- ness or its net worth, and the current condition of the business or its net gain or loss between any two given t)eriods. The accounts comprising the complete transactions of any business are susceptible of an arrangement or classification which will show at a glance, not only the existing condi- tion of the business, but its exact measure of prosperity or adversity during any stated period. A thorough coiuprnhcusiou of the nature and purpose of each account will at once "iigge^t its iwsition in the statement or classification. CLASSIFICATION. Accounts are divided into two classes : Real and Representative. Real accounts are those that show in the difference between their sides a rtsource or : liihilUif. Tiicy arc Cash, Bills Receivable, Bills Payable, Bank, Personal Accounts, etc. Eoprescututive Accounts are those that exhibit, in the difference between their sides, [ either a g, S.G W. .^ Can 4 Mer 5 Rail 6 Bill n 4 Bill 8 Kea '.) Unl) 10 0. ( 11 Exp 12 Intc 13 \V. 14 Jnli 15 Con ents: w to you, to ger accounts d by a cash reus are Mer- tjy are repre- II' distinction and what we is, when the ) exceed the cdger, should excess of the. ed than given nd when pro- ibilities from its rtsourceit subtractinj^ subtractiu!; Resources over resources or es orincrcasy at the com- ix at the closi' e sum of the ic individual etenttomeaourH raoiial aocountB, 8t be taken Into 41 SXEROIBES. JTie student will test his familiarity with the foregoing lessons hy rendering iimili/ses or siite- ments of Losses and Gains, and of Resources and Liabilities from the following txcr- cises, before proceeding to close the Ledger. TRIAL BALANCE Single Proprirtor. Dr. Bal. 1044 1532 500 6685 1000 70 1061 375 45 300 27 17 25 Dr. Footings $150 4170 5750 500 7000 1500 400 154 12(K) 375 1400 120 300 12621 69 II23019 17 29 25 L.F. 1 2 3 4 5 G 7 8 9 10 11 12 13 14 15 71 Stock lALdse. (unsold $2.000) Cash Robert Baker Real Estate (unsold .^G/JOO). Bills lleceiviible Bills Payable C4eo. Ritchie & Co Warner Bros Exponse N. Jones Hunt & Co Interest and Discount W. P. Grabain Loss and Qain Cr. Footini^s. 17500 3125 4218 315 500 1200 75 139 2100 170 75 360 1 ■Equilihrium- i2:i019 90 12 69 Cr. Bal. $7350 800 700 170 3601 7! 1 12621 G9 69 Net capital at coniQiencinEC, $7,.350. Net Gain, $450.73. Net capital at closing, $7,800.73. TRIAL BALANCE.— Partnersuip Business. L. F. > • Dr Ci '• >» S. G. Beattv, (Partner) $3000 9732 7:'.50 12000 7000 31 RO 7500 1150 125 28 1795 1290 10 $16<.3 I-JDCO 4710 ;i719 501)0 61 80 1 50 Oi'O l.J'O 13 705 81(1 13 W. B. Robinson, (Partner) a Casli . ... 4 Merchandise {Value unsoUi, $5,159.50) Railroad StoekCFafttc a»woW,$12,0t>0) 6 Bills Receivable n 1 8 Bills Payable Real Estate, ( Fa/w wnsoW, $8,000) <) Robertson & Henry 10 G. C. Holton &Co n Expetise 1" Interest 25 IS W. W. Jonrs "'. '. 14 John Cook 15 Conj^er Brns... . . 54150 10 1 .541,')0 10 S. G. Beatty's net capital at commencinp, $13,863.13. W. B. Robinson's not capital at commencing, $12,000. Total net gain, $2,039.25 ; each partner's share of gain $1,019.62J. S. G. Beatty's net worth at closing, $14,882.75. W. B. Robinson's net worth at closing, $13,019.63. • PaHnorx' acooants are troftV! and transfer the amount in black ink to the opposite side of the " Balance Account." If the difference represents a gain or loss, enter on the smaller side, in red ink, " To," or " By Loss und Gain," and tran.«f.'r the amount in the same manner to Loss and Gain account. Close all the accounts (except Stock or Partners), and transfer the balances as directed. The Loss and Gain Account will now show, on the debit side, all the losses, and on the credit side all the gams, the diffjreuo j being the net loss or net gain. The " Balance Account " will Bhow on the debit sidiv all the resources, and on the credit side all the Liabilities, the differ- ence being the real interest or present investment of the proprietor or proprietors. * When the butiiiiora is to be cont.tniKMl. insteadof closing tlie Real Accou ''^ into Balknoe Acooont you bring down the balance* m Ir done in Hot V'l. one to contain it account in 43 5th. — Close Loss and Gain aacount into Stock, or, if it bs a partncrship'business, into the partners' accounts, dividing the gain or loss, according to agreement. The Stock or Partners' accounts will now show the original investment increased by the gain, or decreased by the loss ; the difference being the present net investment. Inasmuch as the Balance account shows the same thing, they must of course agree. 6th. — Close Stock (or Partners' accounts) into Balance account, which must equalize that account, it showing now, on one side, the total RcKOurcjs, and on the other side the total liabilities, and presenting in the most condensed form the exact present condition of the business. CLOSING THE LEDGER. In the preceding form it was thought best to leave the licdgcr in its open or current condition, the results of the business being shown in separate statements. When the object is to know simply the condition of the business, this method is sufficient ; but when it becomes necessary to mark the progress of the business in some enduring iiianner upon the Ledger, the accounts must be *' closed, " and the balance exhibited. The object of closing the Lodger is to put an end to its current condition by dispo.sing of the B.RPRESENTATIVE accounts ; for, inasmuch as the propriftor is to be credited with his net investment, whenever that net investment is increa'^ed by gains his account should get the benefit of it. As it would be impracticable to carry the separate gains and losses to the proprietors' accounts when they accrue, they arc permitted to vcmain in the accountn producing them. In real business, books are usually cln.s ;d one 2 a year and in rome estab- lishments every six months, thus marking an era in the business. We shall now take the student carefully through the process of "'clo.^ing the Ledger." Having gone through the process of Journalizing, and posting the transactions in Set I. and taken oflF a trial balance to satisfy ourselves that the work has b^en properly performed, we now proceed, according to the following instructimis, to close the Lodger Accounts. We open " Loss and Guin " and " Bui nice '' iicciuuts as directed. Wo then ascertain from the Inventory at the end of the Day Book, page 29, the value of goods unsold. The unsold Flour in this case is worth $3,915, and the unsold Wheat Sl,120, which a)nounts we enter on the credit side of these accounts in redinlc. " Bjj Buhaicr. Invfuturi/," and transfer the same immediately to the contrary or Dr. side of Balance account, making the entry in black, " To Flour $3,915, " To Wheat $1,120." The accounts are now in a condition to close; and we will take them in their order. The first account (after Stock) is cash. This account represents a resource consisting of cash in hand, $2,550. We close the account by entering the difitirence, !ii red Ink, " By Balance," on the credit side, and footing up the sides, drawing double red lines underneath. The red ink entry, or balance, is transfeiTcd imniediatoly to the debit side of Balance aiccount. The next account, Flour, shows a gain, tlu' Cr. or proceeds from sales, together with the value of that unsold, being greater than the Dr. or cost, and the difference is entered in red ink, on the debit side of the account, " To Loss and Gain, $550," and transferred to tlio (^edit side of Loss and Gain account. The ujxt aucuuut, Wheat, is clo^scd in the same way. Aoeoont you 44 The next, Bills Payable, shows a Liability, consisting of our unredeemed Notes, and is closed " To Balance «1,315." This bulince. is transferred to the credit side of Balance account. Bills Receivable account is closed in the same manner as Cash, the balance being transferred as a resource to Balance account. The next account, James Rimmer, is closed in the same way. The next, W. Lingham, shows a Lvihility, and is transferred to the credit of Balance. Robert Thompson's account already balances, and we close it by simply footing and ruling it. H. Corby's account shows a Liability and the balance is transferred to the credit side of Balance. The next account, James Miller, already balances, and as there is but one entry on each side, we close it by simply ruling the double red lines. Expense account shows a /<>««, and is closed " By Loss and Gain,"' $Ui5,50, and transferred to ihadebit side of Loss and Gain. We have now the result of all the accounts exhibited under the heads of Loss and Gain, and Balance, and if the balances have been properly transferred these accounts, tt>}2otlier with t' ^ (unclosed) Stock account, must be in equilibrium. To test this, wo next take a * ;;al '? .. tiCe of these three accounts, which we call the SECOND TKIAL BALANCE. Dr. Cr. Stock Loss and Gain Balance $165 11965 50 00 S8000 815 3315 50 00 00 12130 50 12130 50 After proving by tliis test that the balances have been properly transferred, we proceed to accomplish the grand object of closing the Ledger, by carrying the difference between the two sides of the Loss and Gain account, or, in this case, net gain of $649.50 to the Stock account. 'J'lu: Stock account now contains the capital invested, increased by the gain, which must c(jual the present worth, as shown by the Balance account. We now close Stock account into Balance, which mupt produce an equilibrium of the Balance account, and complete, in that account, the record of Resources and Liabilities. The Balance account is U8ed for its convenience in collecting, under one title, all the Resources and Liabilities. The same effect may be produced by bringing down the balances under the Real accounts. The latter method is adopted in business, particularly where the record is continued in the same Ledger, The student should remember that in no one thing does the proficiency of a practical accountant more plainly manifest itself than in the matter of neatness in arrangement ai d execution. He should observe particularly the form adopted in ruling and bo camful to enter all Balances, Inventc.ries and ruling, with ret? ink, and all Transfers with bbck ink. after. Tbo iorm adopted iu closing thu Lodgci on the following pages is submitted us a model to gulr" yuu here- 45 Notes, and is Us Receivable as a resource le way. The ince. Robert lud ruling it. credit side of but one entry ount shows a lit side of Loss Db. laii, SPECIMEN LEDGER— CLOSED. See Explanation, pages 43, 44. STOCK. •2»t Tvi Halaiif*-. ^t»;lik. guif* /ou hor«» Jan. •1 To Stock, 30 4000 50 Jan. 2 By Flour, '^ Wheat, 30 300 00 4 " J. Rimmer, 30 100 00 3 30 300 00 6 " Wheat, 30 125 00 5 " y" 30 560 00 11 ■' Bfilniici;, •(T ••.V,:» ini 5725 5725 50 FLOUR. Jan. 1 2 it 3 a 6 <( 12 1^(1 To Stock, " Cash, « Bills Payable, " H. Corby, " Bills Payable, ■' l,ii>- mill (l;titi 30 3000 00 Jan. 6 30 300 00 K 13 30 650 00 II 17 30 3000 00 ■Ml 31 315 00 i: 7815 (III 00 Bv J. Miller, " J. liimmer, II I llVflltulS . 30 1300 31 1400 31 1200 r,' :w 1 :. 7815 00 00 00 IKI 00 WHEAT. Jan. 1 11 2 « 3 (1 5 (( 10 II 17 I'll To Stock, " Bills Payable, " Ca.sh, II II " W. Liiighani, II 11 '• (,ii~> aiiil ( I'jiiii. 30 1000 00 Jan. 2 30 200 (H> 3 30 300 W , 4 30 560 CK) 5 31 450 00 1 6 31 550 00 i 8 17 :.'ti:, (II ' 11 I'll 3325 00 By J. Rimmer, " R. Thompson, " Bills Receivable II 11 " Cash, " J. Rimmer, " R. Thompson, " Sundries, ■' Hal. Iiivfiitoiv 30 150 30 600 30 175 30 120 30 126 30 280 31 376 31 380 IT Ifiit 3325 00 00 00 03 00 00 00 00 I'U * Sundries, ineaiiiiig Keverul acuoinitit, HtandB for the three nucoiiiito, Cash, Flour, and Wheat. D 46 Dr. BILLS PAYABLE. Cr. 1886 1886 Jan. 12 To Cash, 31 650 00 Jan. 2 By Wheat, ''^ Floar, 30 «200 00 It 16 « it ' 31 200 00 « 3 30 65 00 '' :'| 1 •■ IVihiMf. 1 ; i;; I.". < v ^ « 12 « II 31 315 00 (I 16 " H. Corby, 31 1000 00 2165 GO - • 2165 00 BILLS RECEIVABLE. Jan. 4 To Wheat, 30 175 00 Jan. 15 By Cash, 31 175 00 li 5 It II 30 120 00 II 17 11 II 31 120 00 i< 8 " J. Miller, 30 1300 00 li l'h ■• l!;il;iiiti'. i: i l.'.M ni 1 II 11 " Wheat, 31 150 00 00 _1745 1746 00 JAMES RIMMER. Jan. 2 To Wheat, 30 160 00 Jan. 4 By Cash, 30 100 oo II 8 II i< 30 260 00 " •.;( 1 ■ rnl.^MM . ir iiu:^ < I ;i 1 II 13 " Flour, 30 1400 00 II 17 11 ii 31 1200 00 ^ „ 3030 00 . 3030 00 W. LINGHAM. Jfth. :'.< ' ■( u i'!\l»uce.. -( , 1 (l( 11 1 1 II 1 4 00 Jan. 10 17 By Wheat, i( II 31 31 450 650 00 oo 1000 JOOO oo ROBT. THOMPSON. Jan. It To Wheat, II u 30 31 600 375 * 00 00 _00:: Jan. 16 975 By Cash, 31 975 975 00 00 H. CORBY. Jan. II 10 16 ■JO To Cash, " Bills Payable, 31 31 -17 1000 low lOUll 00 00 Jan. 6 By Flour, 30 3000 3000 00 3000 Op Dr. '18861 Jan.] 6 iTo Flour, 47 JAMES MILLER. ' (1 1882" 30 II 1.300 I 00 II Jan. 8 |By BilTs Receiv,, Cr. 30 II 1300 00 EXPENSE. Jan. 9 18 To Casli, « it 30 31 25 140 50 00 .I..;', .'11 !'> L\'» (dill Uttiii. 47 Ki,-, ■ f) 165 50 165 50 (Losses. ) LOSS AND GAIN. (GAins.) Jan. 20 To Expense, 47 165 815 50 00 Jan. (1 20 By Flour, '• Wheat, 45 45 550 265 815 00 00 00 (Resources.) ♦BALANCE. (Liabilltieii.) Jan. 20 To Flour, 45 i 3915 00 Jan. 20 Bv Bilk Payable, 46 1315 00 a it " Wheat, 45 1 1120 (JO a *( " W. Lingham, 46 1000 00 a ii " Cash, 45 2550 00 ! " (( " H. Corby, 46 1000 00 it n " Bills Rec, 46 1460 00 ! n t( " Stock, 45 8650 00 (< i i " Ja.s. Riiumer, 46 ; 2930 11965 00 j 00 ! • 11965 00 DETECTION AND CORRECTION OF ERRORS. The Trial Balance is the best short test ofcorrectness in posting yet discovered, but this is defective, inasmuch iis errors may exist while the Trial Balance is apparently entirely correct : — such as posting to the wrong account, although on the right side ; omitting to post a debit and a credit of equal amount, &c. But if the Trial Balance is not in equili- brium there is certainly an error, which must be sought and corrected. DETECTION. First. — See whether the pencil footings on the Ledger, made preparatory to taking the Trial Balance, are correct, by adding both up and down, and whether the footings and balances of the diflForent accounts have been transferred into the Trial Balance correctly. Second. — ^^If there is still an undiscovered error exarcino each posting separately, checking the entries in both Journal and Ledger as you proceed, thus, V, until you have been over the whole ; and then look through again, to see if any amount remains unchecked, and, if so, investigate the cause of the omission. In this manner, you can scarcely fail to discover the mistake, provided the Journal is correct ; but great care should be taken to see that the Journal is in equilibrium before posting, as any discrepancy there will give you much trouble in the Ledger. ''It will be observed that all those accoiiiits that have been clo^ied "By Balance "or" Balance I iiveiitory" appear ou the Dr. side of Balance Acouunt, while those that close " To Balance " appear on the Credit side You win also see thatStock makes up the deficiency between the two sides. It being the concern's net capital, and also agrees with the balance of Stook acco/nt, after the net lossor gain has been transferred to it. ; 48 CORRECTION. In the Day Book (or any otiier book of orij^inal entry), erasures are not admissible, since this book is taken as evidence in Courts of Justice, and any tiling obliterated or erased looks suspicious, and would probably render invalid the entry with which it is connected and in some cases might even throw the whole book out of Court, as evidence unfit to receive. Errors in it should tlierefore be corrected by making other entries explaining them ; or the erroneous entry, if it has not been journalized, may be marked " void, " and remain without further alteration, a new and correct entry being made of the transaction. In thk Journal, erasures are sometimes admissible, although it is genemlly advis- able to treat errors as directed for the Day Book. In the LEDOEa, if any entry be posted to the wrong account, or to the wrong side of the account, make ciphers of the figures, and leave the remainder so as not to deface the Ledger ;" then post the entry to its profKir place. If a wrong amount be posted, alter it to tlie right. And if a duplicate posting be made, make ciphers of the figures in the erroneous one. If two accounts be opened with tlie .same person, close the one into the other. " To " or '• By ;" name of account, page — , foot and rule off the closed account, as a settled account; slating the particulars of each transfer to the open account A further explana- tion of this will be found hereafter. See Index for " Cross Entries. " Questions for Review — ^Chaiter III. Into what classes are Accounts divided ? What is n Real Account ? Name some Ref Accounts. What is a Representative Account ? How are Representative Accounts sub-divided if Define Speculative and Incidental Accounts. Give examples of each. What is a Resource ? Define the term Liability. What is the measure of all value in business ? By what Accounts are Liabilities represented on the Ledger? What will the difference between the Resources and Liabilities of a business show ? How are Resources and Liabilities invariably shown in the Ledger ? Wiien do Losses and Gains occur in business ? How may the net worth or net insolvency of a concern be found ? How may the net gain or loss during any period be found ? For what purpose is a Trial Balance taken ? How should you proceed to take off a Trial Balance ? In what way may the footings of the Trial Balance be made to correspond with the footings of the Day Book and the Journal? Is the Trial Balance always a strict proof of the correctness of the work ? In what Wiiy may an error occur and the Trial Balance stand in equilibrium ? What is necessary after taking a Trial Balance, before we can get at the data from which to ascertain the net worth, or net gain or lo.ss ? In classifying Accounts, what two grand objects are kept in view ? Define the ttirm Balancing an Account. How do Real Accounts close ? How do Speculative and Incidental Accounts close ? Wliat is the object of closing the Ledger ? What two Accounts are apened to receive the results of all the other Accounts ? For what purpose i.s the Balance Account used ? Which of the Statements show the same as the Balance Account? When should red ink be used ? How would you proceed to detect an error jn the work, if the Trial Balance did not come right ? How should corrections be made in books of original entry ? If an entry be passed to the wrong Account in the Ladger, how should the correction be made ? How should the correctioa be mad ) when twj Accounts have been opened for the same person ? 49 CHAPTER IV. BUSINESS SERIES. The foregoin;^ exorcises Mti 1 lixtiliiavtiDM iir.? suffioituifc, if thoroughly unJcrKtood, to familiarize; yovi vvitli the tlioory of I) >ublo Entry Book-kotsping. It now ri!iu:iins with you to ftiston tlioso prinolplos in 1 ilibly on yiur mini by th ! ro^ular proccHd of Book-kcopinir, which at thu same tini) will S'jrvj to give you praetioe in busimiss record, which is osHeutial to real progrcHs. The sets whii'h f)llow, whilo aorving as a synthotical unfolding of thv sclcnpo, are intended, each in it< turn, to present .some specialty of buniness, and sorn'^ radical f"atiir>j which distinctly filufiietirizj^ its purpt-i; In pre-ienting the transactions, caro has been taken to avoid, as far as possible, any spocid /or/ft of entry ; but at the same time to present the /«c^s as clearly and unmistakably as possible. They are int in led to ooviU* a wide field of practice, and to present Kufficicnt variety of transactions and knowledge of tiieory to give the studont an excellent under.standing of tiie scienc>!. Each set is complete within itself, and special in its purpose and teaching. Its cliaracteristics are briefly annouiiC'.id at tlic start, and as its results only, with more or le-is detail, arc giveu at it-: close, the student is obliged to accomplish the work of the set in order to arrive at the proper result. This mode of arrangement is calculated to throw the learner upon his own resources, and rescue him from the too common error of copying down the work without understand- ing it. Thi^ feature will no doubt commend itself to all faithful students. While performing the following work, remember that the three great qualities essential to success in Accountantship are : Accuracy, Neatness, and Dispatch. SET II. RETAIL DRY GOODS BUSINESS. CilABAOCERisTlcg. — ^(tyirtiy iiii'l .will It;/ t'di' C uh iinl oil, Persnntl AGcoimti. Bmlness Adnerse. Note.— [iisteail of keeping a distinct acooant with oach artiuli of trniHo, as in Sot r, we clagsify all umier the titli> of " Morc!iau(ltae." ThU is the usual biisinpss lut^tho 1, anil shoul.l always be adopted, except where it la I'Siiential to know the gains and losses on eicU particular kind of property or branch of bus<'i "H. Halifax, Fobruary I, 1885. — Iav9 yA". Black Broadcloth at $1 ; 2 yds. Farmer's Satin at ."jOc. ; 1 yd. Silecia, 30c.; 1 yd. Canvas, 20o. ; 1 yd. Hair Cloth, 60c. ; 3 sheets Wadding at .5c. ; 1 doz. Buttons,. 25c. ; 4 skeins Silk at^5c. ; 1 Vest Pattern, $4.25 ; 5 yds. Re0.46. Note.— Remember when recording thu Day Book entries to separate each transaction, whether they on the same date or not, with a line, and ase a separate line for each Item sold or bought. ocout h 50 6 — Paid Sanderson k Co., on aoct., oanh, $8fiO. ■ " Bouf(ht of W. L. Hamilton, on acot., invoioe of morohandiRO, $1,500. " Sold A. H. Skinuor, on aoot. (wifo), 10 yds. Linen Edging at 16o. ; 15 yds. Muslin at 30c, : Trimmings, $1.20 ; 3 yds. Fine Linen at 60o. Total, $8.70. '• Paid W. L. Hamilton, onlaoct., canh, $2,000. CaM tale* this day, $192.86. 8 — Bought for cash, invoioe of merchandise, $400. " Paid sundry items of exiwnso, $24.60. '* Bold B. M. Uarmau, on acct. (daughter), 18 yd«. i* 23— Sold G. J. Sherry, on account, 4 pieces Tweed, 160 yds., at $1.60, $240; 1 case Muslin, 1,800 yds., at 25c., $300. Total, $540. 24— Sold Thomas Moore, on account, 11 hhds. Molasses, 700 gals., at 40o., $380. 36— Received from G. J. Sherry, cash on acoouatt, $100, and hia note for $126. . — Biwneu 51 >0— nedo'.raed ray note of the latli iust., favor of Walker k Son, $430, for which I gave canh f:t( ). and G. J. Sherry'i* note for balance $12r). •_i7_R)M oive0. Revieivod ff Thomas Moore, conh iu full of accMuiit.f 130. •' l»;'.id oas> ' for Clerk'n Salary, !$75. !i,i>( litnry oj, gootl* remaining iiimold; MerchandUr , $5,500. \V ' ('iipitai at oomiMnving,%9,^iy() ; Net gain-, %\,'i'i'i; NH worth at oloilnff,^lO,7!}3, rp:marks on notes and bills. A new feature in connection with the work of the next set ih the computing of interest im note* and bills. Ah beginners ollen experience difficulty in determining the day upon wliicli' notes and acceptances fall due, wc shall endeavor, in the fuUowing directions, to make I iho matter plain. In all computations in reference to notes or bills, in the following sets, three days' \ffnce is included. When the term of a note is expressed in days, the day after drawing or _ I accepting is the first day count id, in the timq to run. Thus, a bill drawn or accepted on [.January l.st, at 16 days, will fajl due, Januar/ 19th, — including three days' grace. A [bill drawn or accepted on the 29th ^September, at 60 days, li is to run In September 1 day In October 31 days In November 30 days In December 1 day C3 da3'8, due Dec 1. Again, a bill dtawn or accepted 30th September, at 90 days, has to run In October 31 days In November 30 days In December 31 days Iv. January 1 day 93 days, due Jan 1. It will be observed in the last example, that no time is allowed for September, Llthough the date is on the last day of thiit month, as, according to the rule, the day |following the date is the first day counted in the time to run. When the term of a note or bill i>< expressed in months, Calendar Months are ■always understood, and it comes due in tlic last month of its term, upon the day corres- Iponding with its date, to which are added the days of grace. ') he time of payment is ^ot extended, in business, on account of any deficiency in the bength of the months, of which the term of the note is made up. For instance, a note drawn km the 3l8t August, at three mouths, and another drawn on the 30th August, also at three jnionths, will both fall due on the same day, viz., 3rd December. Bills of different dates running the same time will sometimes fall due the same day, and thus occasion unexpected inconvenience. Sometimes by obtaining one day's advance in the date, two, three, and four days are gained in the time of payment. For example, a note or bill drawn or accepted on the 28th February, at six months, is due August Slst. but if dated on the 1st March, only one day later, it would not be dno m.;!! the 4th September, thus extending the term of payment four daya for oue day's difference in the late. 52 In the following instances, one day's advance in the date will give the day of payment three or four days later. Notes drawn or Bills accepted February 28th.* At 1 montli, arc due M;irch 31, but if dated March 1 are not due till April 4. " 2 months, It May ■'i II II II May 4. " 3 u May 31, u 1. June 4. " 4 ik July *y li It 11 July 4. '■ 5 u July 31, II 11 il Aug. 4. " 6 II Aug. 31, II II ll Sept. 4. " 7 II, Oct. ^1 " II II Oct. 4. " 8 11 Oct. 31, IC 11 Nov. 4. " 9 11 Dec. ^> II 11 Dec. 4. " 10 II Dec. 31, 11 11 11 Jan. 4. " 11 II Jan. 31, (1 II II Feb. 4. One di-y's advance in the date will in the following cases give two additional days in the time of payment. Notes drawn or Bills accepted April 30th. At 1 month, are due June 2, but if dated 1st May are due June 4. " 3 months, II Aug. 2, 11 11 II Aug. 4. II 4 II Sept. 2, 11 11 Sept. 4. " 6 II Nov. 2, II 11 Nov. 4. " 8 II Jan. 2, il .11 i Jan. 4. " 9 II Feb. 2, 11 11 Feb. 4. 11 11 II April 2, 11 11 April 4. The above illustrations arc sufficient to impress upon those having anything to do with bills, the fact that an error of one day in recording the maturity of a note or acceptance tnay cause the holder to lose his remedy against the endorser ; and perhaps cause him to lose the amount of the note alto'^ethcr. When the last day of grace fails upon Sunday or a bank holiday the note is payable on the following day. We have next to point out the othur fiiiture alluded to, viz : those instances in which several notes or acceptances, dated or accepted on different days, and having the same time to run, in months, will fall due on tho same day. 4 If you give four notes dated — August 28, at 6 months, August 29, at 6 months, August 30, at 6 months, August 31, at 6 months, * these notos, although of different dates, and all of the same running time, will become due on the same day. Again, if you give two notes dated — March 30, at 3 months, March 3l, at 3 months, they will both fall due on the same day. * Our oalculatious are all luado for ordinary years. Leap year makes a day's differenoe. 53 pril 4. ay 4. ine 4. ^ly 4. ^ug. 4. ept. 4. ct. 4. ov. 4. )fiC. 4. ■s an. 4. 'eb. 4. onal days in MEMOEANDA. The following memoranda will enable the learner to determine in the preceding cases when to date bills in order to advance the day of ptvyp-ent, and to tell the precise day upon which they^ become due : 1. — Notes drawn or bills accepted en the last day of February, with a running time in monthx, will advance the day of payment three or four days by dating forward one day. 2. — Notes drawn or bills accepted on the last day of a thhiy-day month, with a running time in months, expiring in a thirty-one day month, loill advance the date of piiymeut twn days by dating forward one day. • 3. — Notts drawn or bills accepted on the last three days of thirty-day months, and th" last four dai/s of thirty-one diy monthx, with a running time in m)nths, ex/iiring in February, will become due on the same day. 4. — Notes drawn or bills accepted on the last two days of thirty-one day muiths with a running time in months, expiring in a thirty-day month, will fall due on the same day. SET IV. FURNITUEE BUSINESS. CHiUACTKKlSTics.— /?M(/in/7 /«?• C/i«/i, OH Permnnl Account, and en Notes. — Inferext fnl/en inAi comideration. Commenoiug with a JVvt Cnpital, xustaining a loxs greater than Capital, and cloning Jnnolrent. BOOKS USED-DAY BOOK, JOURNAL, LEDGER, AND BILL BOOK. Sec form of Bill Bo(dc at the end of Set. Ottawa, March 1, 1885. Leased a store of T. B. Dean, at 5600 per aauum, and commenced the Furniture business, invest- ing as follows : Cash, $1800. Stock of furniture on Hand, SiriOO. Note against A. Overall for $750, dated Jan. 17th, ISSo, at 2 months. Total investment, S+OoO. Bought of G. S. Tickell, Belleville, on one Month's credit, 15 Carved Rosewood Centre Tables at $60, 6 doz. do. Arm Chairs at $80. Total S 1 1 10. 2— Sold W. E. Burber, on his note at 15 days, 10 Carved Rosewood Chairs at $8, 1 do. Centre *':able, $75, 1 Gothic Hall Stand, $25. Total, $180. .^--Bought of Jakes & Hayes, Toronto, on acct., 10 sots Enamelled Furniture at $75, G do. Black AValuut at $150, 10 Extension Tables at $25. Total, $1000. 4— Sold W. H. Sherman, for cash, 1 set Enamelled Furniture, $100, 1 Extension Dining Table, 540, 8 Carved Chairs at $8. Total, $204. 6— Sold W. W. Jones, on his note, at one month, with interest at C per cent., 1 set Enamelled Furniture, $100, one Extension Table, $10, 1 Dressing Bureau, S;i5, I Rosewood Tete-a-Tuto, v50, 1 Gothic Hall Stand, $28, 1 Card Table, $5, 1 French Bedstead, $22, 1 Cottage Bed- stead, $15. Total, $295. *6— Settled with Jakes & Hayes, by giving them my note at 1 month, with interest at 9 per cent., in full of acct., $11)00. . 9— Bought of J. B. Ashley, on my note at 10 days, 15 Black Walnut Book Cases at $60, 2 doz. do. Arm Chairs at $o0, 20 Curled Hair Mattresses i;t $?j, 20 Double-Leaf Secretaries at Sii:, 26 Music Racks at $5. Total, $2245. 10— Sold G. W. Maybee, on acct., 1 Carved Rosewood Centre Tabic, $.)0, 2 doz. do. Arm Chairs at $50, 1 set Enamelled Furniture, $80, 1 Black Walnut Sofa Bodstead, $50, 2 Extension Tables at $110, 2 Gothic Chairs, B. W- stuffed, at $ir, i Easy Rocker, $12. Total, $392. 1 11— Bought of Jakes & Hayes, on 3 mouths' credit, an assortment of Furniture amounting, per invoice, to $'<,500. "—Paid cash for Insurance, $125. *'i'lii9 noti) i.< to lien' lutereat, bat you maku the .lonrnal entry as tlimwh It were not. At the maturity of the noto I yon will ilpftl with interest. I The Dr. Hide "f Interest oco'tshows what Intereac casta you, and tho Cr. lide what interest proJacesfor you. It cloMi I either to or by loasand gain. 64 IB— S lid S. G. Boatty, for cash, 2 Black Walnut Bureaus at $i<0, 1 Rosewood Parlor Set, $400, 1 Enamelled Bedroom Suite, $200, 1 Single Bedstead, $8, 1 Quartette Table, $9, 1 Ladies' Arm Chair, $12, 1 Black Walnut Library Book Case, $75. Total, $764. 16- Sold W. McKeowp, for cash, 1 Carved Rosewood Secretary, $120, 3 Patent Spring Beds at $60, 1 Walnut Centre Table, $.50, 2 Rosewood Bureaus at $40, 2 Arm Chairs at $10, 2 "Sleepy Hollow" Chairs at $25, 1 Black Walnut Parlor Suite, $300, 1 Side wiiat-not, $9. Total, $t<09. 17— Paid cash for three months' Rent, $150, Advertising, $25. "—Bought of Jakes & Hayes, on acct., Furniture Amounting, per invoice, to $2150. ti_Bought of H. W. Huffman, on my note at 3 months, Furniture amounting to $550. 18— Received from 6. W. Mayoee, cash on acct., $150. "—Sold W. Johnson on his note at three months, 1 Hall Stand, $5, 6 Par'-^r Chairs at $3.50, 1 R.W. Tete-a-T6te, $30, 1 Black Walnut Sofa, $30, 1 Large Dining Tr il4, 1 Piano Stool, $8, 1 Music Rack, $5. Total. $113. 19— Sold Warner Bros., for cash, 2 Bed Room Suites at $50.60, 2 Rosewood Parlor Suites at $200. Total, $501.20. ' 20— Received from G. W. Maybec, cash in full of acct., $242. "—Received from A.Overell, cash in full for his note of Jan. 17, $760. 22 *J. B. Ashley renewed for one month my note for $2245, due this day. Charges on renewal, $13.78. 24— Sold H. Corby, »n acct., 20 doz. Kitchen Chairs at $8, 10 doz. Rush Bottom Chairs at $18. Total, $340. 28— Bought of Smith & Co., Kingston, on note at three months, assortment of Furniture, amounting, as per invoice, to $1,500. April 1st.— Paid U. S. Tickell cash on acct., $.")00. g — Received from W. W. Jones cash in full for his rote of 5th ult., and interest thereon to date at 6 per cent. Face of note, $295. Inierest, $1.(!2. 12— Paid salaries, $180. - Sundry expensce, $2r.. 16- Paid my note Ctli ulto., favor of Jakes &, Hayes, with interest to date. Face of note, $l,90fi. Interest, $19. Inventory of merchandise unsold , $5336.34. Net capital at commencement, $4050. Net loss, $6066.62. Net insolvenpy at ehmng, $2006.62. ItEMARKS ON THE BILL BOOK. The Bill Book should never be omitted in any business dealings with notes, either payble or receivable. It is so simple that the student will see, by inspection, its utility. All necessary explanations are made by the headings of the diflferent columns. The precaution of closing the Bill Book and showing the amount of bills unpaid is necessary in a business where any considerable number of Bills are given or received, in order to maintain harmony between this book and the Bills Payable and Bills Receivable accounts in the Ledger. It wiU be seen that the Bills entered in the following forms are taken from the trans- actions of Set IV., and hence the notes on hand and notes outstanding, as shown by Bill'' footed up, will be found to agree with tlie balance shown in the proper Ledger accounts. NoTK. — The rtudftiit is e:,peotet for dftyn; but, since It conalders the year as containing only 3flO dajn, instead nf 301, the re-iult is too large by -^i , -.L of Itself. Hence, when perfci't accnracy U desired, the inleiest fur tlia diiys wlion nbuiiiied by the rule must bo Uiniu.itliel l,y_J- partnf itwit. In busirom ralcnlatlons it is not customary to enter fractions of it cent upon the account boolis ; consequently, 'ii bU computations thrnnghnut these sets where a fraction of a cent less than one-half occurs, we take no notice of it ; but where a fraction of half a cent or more ix^curs, we call it one cent. * \ mil r the head of " Unlriee for Ilenewali ot Notes," page Mi, yon will learn how to malce thtseotry In the Journal. \ 55 iiites at $200. hereon to date f note, $1,900. itlng interol for 'by ai^jy-r"' st be Uiiiui'inhcl consequently, 'n notice of It ; but ty In the Journal. J M •s 1 S . 3 i a a .2 ■o -o -o 1 0) « > .£ Ji 01 0) •o 0/ 04 U o X 1 e-1 :3 a, s < d « •-H r—t q^i •UBf S3 1 in >a lO m »-H 00 00 00 00 w >H 00 00 00 00 u .§ s § H *^ P5 a a a m m r- « lO 00 t-; .X3 f^ a a s i •.4 hi 0) 1 !: lO to lO in .a 00 00 CO 00 00 00 r-t .— 1 .!«' a S a 1 ^ s 3 ^ 3 ^ S^ is o a hs o s S what eived. c s ^ 1 1 a ■• ** a s s fc > - 3 o ft <• ^ I*" ^ ^ ^ » " *• ti >A eror ptor. 1 a o «-s a o « != K V OQ J3 s ^ O ca ^ O •-> ->i EC ^ ^ 1 '^ « lO 1 ^ ■ ■^ J3 § :: = 3 M S 1-^ N w ■<»< •ox 1 ^ 1 ^ ji o X s 1 .a ^ S ;ij ? a .O w a 9 13 a 5 . Is S T) a 4 «> a"3 a. M S (► CO M N cSs <9 ■3 OS <) a * 00 1 00 1 Sm a •< Ir- S| •so g =! s 00 lO o o 00 to -1 lO l-H CI '^ U •aj(I 5^ •AOX • idag •iCi.if o ,^ ^ •annp .i 0& a •^ C t- M 00 5 .— 1 N M uj hH w m s a as C4 a 03 t-t s S s 7i S >s S »o •o o lO 9 00 00 T) 00 00 00 2 00 00 .M H s •N - .>i s 3 p^ >» s :! *» .s s , — N « 1 ft " V c . . S 1 n t>< 6 li K •li 00 ■2 2 XI xn < 1 ^ •-; -ft.. •-» 1^ M £ t%i § 1 , u .. 3 ., 3 1 4 ^ CO Oi 1* ty 00 .J ^ w-t M s 1 ja 1 1 3 - - 3 F-t M (0 •♦ 1 •oji ' a 2 -35 .2.3 II 56 BUSINESS FORMS. A thorough acquaintance with the forma of business papers is indispensable to every one who would master the science of accounts. Not only should their nature and use be fully understood, but the ability to make them out readily and correctly should be acquired. For this reason we ask the student to make out formal bills and invoices of merchandise bought and sold, write proper receipts for moneys paid or received, draw up forms to represent bills receivable and bills payable, forms of the drafts and orders referred to in the transactions of the different sets, and copy them until he can write thtm out without referring to the book. BILLS AND INVOICES. A Bill of Goods is a description of the quantity and price of goods sold, with the date of the transaction and the names of the purchaser and seller. An Invoice is a full account of merchandise, in which the marks, numbers, contents and value of each package, together with all charges, are described. i When anything is purchased for another, or is to be charged in account, it is well to take a bill of it. The bill will be a reminder to make the proper entry in the books cor- cerning it, and will also serve as a voucher for items, prices, etc. Even when cash is paid, the bill is frequently needed for reference. Invoices are usually pasted in a book, or neatly folded and marked on the back with the nanie of the person from whom bought, the date and the amount, and then put up in monthly packages for safe-keeping. BILL NOT RECEIPTED. Toronto, Nov. ]«<, 1885. Mr. John S. Ewino, Bought of Geo. Ritchie & Co. 4 yds. Black Broadcloth at $4.26 $17 00 10 " Factory Cotton « 0.10 1 00 15 *' Muslin «« 0.25 3 75 " Red Flannel M 0.40 8 00 4 doz. Linen Hdkfs, « 2.00 8 00 5 lbs. Green Tea (Y. H.) « 1.00 6 00 , 42 75 67 IS paid, 1885. Co. 17 00 1 00 3 75 8 00 8 00 5 00 42 1 75 BILL IlECEIPTED. Mr. W, a. Roblin, Trenton, Bdleville, Nov. 1st, 1885. To CoNGEft Bkos., Dr. To 10 yds. Cambric, .... " 20 " Gingham, " 5 " Broadcloth, " 2 doz. Spools Thread, at $0.15 " 0.30 « 4.00 « 0.50 $ 1 6 20 1 50 00 00 00 28 50 Received Payment, CONGER BROS. Should the above bill be receipted by a clerk, his own name should be signed under that of the firm with the word " per " placed before it. Mr. J. A. Moore, ITEMS OF AN ACCOUNT. . HaHfax, Jan. 2nd, 1885. To RoBEiiTSON & Henry, Dr. 1882. Feb. March April May To 4 yds. Broadcloth, .... «' 3 " Can. Tweed, .... " 1 " Vest (Broadcloth), Cr. By Cash, .... .... " Order on Beatty & Wallbridge, at $5.00 « 1.50 $20 00 5.00 Balance due, $20 4 5 30 25 00 50 50 00 00 00 MONTHLY STATEMENT. Montreal, Jan. 1st, 1885. Messrs. Smith & Jones, Winnipeg, ' To Sinclair, Jack & Co., Dr. 1882. Nov. 66 1 8 28 9 To Mdse. as per Invoice at 3 months, .... .... .... " " " " « 30 days, .... .... .... Gb. By Goods returned. $100 500 400 20 00 00 6i 1000 57 20 00 $943 20 Oentlemen,— We Bhall draw upon you on Wednesday next at 00 days for amount of account. Please honor dratt oa presentation and oblige. Yours truly, SINCLAIR, JACK & CO. INVOICE IN WHICH BOTH TRADE AND CASH DISCOUNTS ARE ALLOWED. Belleville, Jan. 5th, 1885. Messrs. W. J. Gage & Co., Toronto. (Terms — 3 mos. or 3p.c. du.Jor cash.) Bought of Robinson & Johnson. 50 copies " The Canadian Accountant " . . . . Trade discount 30 per cent. 20 copies " Johnson's Joint Stock Book-keeping," Trade discount 25 per cent. Cash discount, 3 per cent. at $2 " $1 100 30 20 5 00 00 00 00 70 15 85 2 $82 00 00 00 55 45 58 INVOICES. *SaleB, 24, FoUo ', 24, 1 ,325. I DOMESTIC INVOICE. Messrs. Beattt & Wallbridoe, Belleville, Ont., Forwarded— G.T.R. (Ternie — Note ai 4 mos. or 3 p.c. dis. for cash.) Montreal, Oct. 28 1 Nora. — The flgnrea on the left are the InToice nnmben, by which any partionlu line of gooda wonld be identlBod. The flgarei underneath the items are grow weighte and tares, or meaanrements. * Sales Book 14, folio 826. 59 $215 28 216 80 114 72 39 60 21 11 00 00 25 618 65 INVOICE OF SHlPME>fT ON SOLE xVCCOUNT. Invoice of Merchandise shipped per G. T. R. lat Nov., 1883, and consigned to E. T. Hamhly, Port Hope, to he sold on commission. 500 bbls. Extra Superfine Flour, 100 " Baker's Spring " 200 " Goderich Salt Paid Insurance .... .... . . at |8 .. 7.50 1.50 & 0. E. Hamilton, Nov. 1, 1885. S. S. Edsall, Consignor. $4000 750 300 40 15090 NoTK. — The Stndent will use the above form of invoice for a single shipment, and the fnllnwing for a joint ehipment. (roods consigned (or sale on commission must not be invoiced as though they were raid . Besides the difference in form you should know that If the man to whom yon have cnnsigniHl goods should fail, and you had taken the precaution to put upon the invoice " Consigned to " instead of " Bought of" you can ctep in and claim your goods. If invoiced in the ordiiiarj way, although it was understood that the goods were only consigned, yea would have to take rank with the Creditors. INVOICE OF SHIPMENT ON JOINT ACCOUNT. ^ Invoice of Merchandise shipped per Steamer Passport, and consigned to John CooJe, Belle' ville, to he sold on joint account of Shipper and Consignee. 600 bbls. Goderioh Salt, at $1.50 400 " Extra Family Flour, 7.50 Charges. Insurance on $3,750, at 1 J per cent .... Drayage $25, Labor $10, Cooperage $4, Wharfage $13. Hamilton, June 1, 1885. W. B. RouiN'SON, Consignor. $750 3000 56 52 25 $3750 108 $3858 25 25 CREDIT NOTE. A Credit Note is an acknowledgment of an error in an invoice, or of goods returned, and is in form similar to an invoice. Instead of the words " bought of," the words '' creditea by " are used, and it is usually printed in red ink, that it may be readily distin- guished froin an invoice. C. W. Thompson, Esq., Belleville, FORM. Montreal, Jan. 29/A,1885. Credited by Sinclair, Jack & Co. i chest, 56 lbs. Y. H. Tea, Short invoice of 5th January. t2c. $23 52 BILL FOR SERVICES. The Hastings Smelting Works Co. Belleville, Oct. 2()«A, 1885. To J. W. JoiiNsim, Dr. 60 I ^ ACCOUNT SALES. An Account Sales is an exhibit of the sales of goods disposed of on commission, with tlic charges incurred thereon. Whin goods received on commission are sold, the agent makes out, for the inspection of the consignor, a detailed account of the sales of .said goods, together with such charges as have been made on account of the same. In making out an Account of Salts, the mode of procedure is, to turn to the proper account in the Ledger, and from thence refer to the necessary details, as found in the books of original entry. A variety of forms are in usj : those given are most commonly adopted in business. SHIPMENT ON SOLE ACCOUNT. Account Snlcs of 100 hi^gs Butter, on account and risk o/ AsHLEY & Co., BelltvUle, Ont. Oct, 23 20 23 Sold for cash 100 kegs— 6800 lbs. net Charges. Freight in ca.sh .... Commission, 5 per cent, on sales, Ashley & Co.'s proceeds iieniittfd by slight draft. E. & 0. E. Belleville, Oct. 25th, 1885, at 20c., H. M. Alexander, Consignee. $1360 00 160 00 $1200 00 JOINT ACCOUNT. Account of Sales of Merchandise reveivtd per steamer Passport, June 3/'c£, 1885,yrowi W, B. RoBJNSON, Hamilton, to he sold on joint account of shipper and mi^aelf, each J. 1885. Sept. Oct. June Sold James Smith for endorsed note at 4 mos., at 9 per cent. 300 bbls. Goderich Salt, 200 " Extra Family Flour, Sold Winter?, Smith & Co., for cash, 200 bbls. Goderiiih Salt, • 200 " Extra Family Flour, , Charges. Freight and drayage, Wliarfage, coo})erage and labor, .... Commission and Guarantee at 2 per cent.. . . Inttrest on charges paid, .... .... Total net proceeds Your } ilet proceeds, Our* « " E. & 0. E., J. J. SOLMES, Kingston, Out,, October 5th, 1885. with interest ..at $2.00 .. « 8.50 $600 1700 .. « 1.75 .. « 8.25 350 1650 $4300 210 95 25 86 3 50 50 • • • • • • • • • • • • 2045 2045 4090 m. $4090 $4090 61 RECEIPTS. n commission, A receipt is an acknowledgment in writing of having received a certain sum of money, or otlier valuable consideration. When a payment has been made, a receipt should be taken as proof of the payment. It may not in all cases be necessaVy, but when important interests are involved nothing should be left to uncertainty, if it can so easily be avoided. A receipt often saves mis- understanding and loss of friends, as well as loss of money. Eeceipts should be carefully preserved, as many instances have occurred in which claims have been presented after they were paid. When not written in a book specially prepared for the purpose, they should be kept in a place of security, so that they may be readily produced if needed. EECmPT FOB PAYMENT ON ACCOUNT. Received from W. H. Yoiirex, Fifty dollars on account. $50 Toronto, Jan. lut, 1885. E. SCARLETT. BECEIPT IN FULL OF ACCOUNT. Bellovill/i, Jan. Ut, 1885. Received from W. R.Ross, Seventy-five dollars, in full of account to date. *^^ CHAS. ADEN. KECEIPT IN FULL OF ALL DEMANDS. Napanee, Jan. \st, 1885. Received from Henry Bros., One hundred and fifty dollars, in full of all demands. ^150 J. A. FRASER. RECEIPT FOB A PABTICULAR BILL. Kingston. Dan. l-^t, 1885. Rf'ceived from Beatty & Wallbridge, Five hundred dollars, in payment for a bill of groceries of this date. ^•''^^^ J. CARRUTHERS. BECEIPT FOB BOEBOWED MONEY ( .R BOEBOWED MONEY DUE BILL). Picton, Jan. Ut, 1885. Borrowed and received from J. S. Miller, Four,hundred and fifty dollars, which I promise to pay on demand, with interest. *^°^'- B. BORROW.' BECEIPT FOE SEBVICE8. Hamilton, Dec. Ut, 1885. Received from Geo. Wallbridge, Forty-seven dollars, in full for services to datt. **'^- 0. PAYMAN. ^ -~* BECEIPT FOB A NOTE. J'fu'c'on, Dec. ith, l^P'!. Received from J. B. Ashley, his note of this date, at four months, for Five hundred dollars in full of account rendered to Ist inst. ^^^^'- GEO. RITCHIE & CO. KECEIPl FOB nENT. Montreal, Diw. Ut, 1886. Received from C. P. West k Co., One hundred and twenty dollars, in full for one quarter's rent of Stire, No. 5)5 McOill street ; duo 20th ult. $120 E. HARRISON. RECEIPT FOR INTEREST DUE ON MORTOAQB. ' rvronto, Dec. 6th, 1885. Received from Robert Smith, Twenty-nine dollars and fifty cents, in full for six months' interest due this day, on his mort^ai^e to mu, bearing date Deo. 6th, 1878, for five hundred and ninety dollar", and which amount is also endorsed on the mortgage. $29.50. 8. G. BEATTY. RECEIPT FOR PAYMENT BY THE HAND OP A THIRD PARTY. Halifax, Jan. Itt, 1885. Received from John Jones, by the hand of R. Howe, Fifty dollars, in full of his account. $50. WM. R. DEAN. ENDORSEMENT OF A PARTIAL PAYMENT ON A NOTE. Bowmanville, Jan. \st, 1885. Received on account of the within note. Forty-five dollars. $45. J. S. MILLER. agent's receipt. Brantford, Sept. Isf, 1885. Received from M. L. Perkins, Two hundred dollars, to apply on his account with C. P. Stan> wood. $200. A. L. HOWARD, Agent. Note.— Payments made by cheque, payable to the order of the Individual, do not require reoeii)tB as lie muBt endorse the cheque before obtaining the money. See cheque No. S, page HI. DRAFTS. A draft is an unconditional written order, addressed by A. B. to C. D., directing him to pay to E. F. a certain sum of money. A. B. is said to draw on C. D., in favor of l). F. A. B. is called the Drawer, C. D. the Drawee, and E. F. the Payee. A. B, may direct the money to be paid to himself, in which case he is Payee as well as Drawer. To make it an obligation on the part of C. D. he must accept it, which is commonly done by writing the word " accepted" and his name across the face of it. A Draft is of no value until the Drawee accepts it. Bank drafts are an exception, as they are payable on demand, and are issued on the credit of the Bank. Drafts may be made payable at a certain time after date, a certain time aft«r sight, at sight, or payable on demand. It is usual, and advisable, to present for aookptance all Drafts we receive, except those payable on demand. With regard to those payable at a certain time after sight/ and even those payable at night, where days of grace are allowed, presentment for acceptance is absolutely necbssart in order to fix the date of pay- ment: for which purpose the date of aoobptance must also be written. , 1886. me quarter's ON. 1885. six months' hundred and nr. 1885, 1 account. DE.IN. 63 When accepting a Draft that is to bo paid a certain time after date, write across its [face the word acrcpttd and i/aur name only, as the maturity of the Draft is to be reckoned [from the date of itself; but wlien acceptini; a Draft ordered to be paid a certain time after Isight place the dote of ucceptunce also, as it is from this date the maturity of the Draft will |be reckoned. Il the Drawer has left the place of payment optional with you insert it with I the acceptance. Three days grace are allowed on all Drafts, except those payable on demand. It is the usual custom to send Drafts through a Bank for acceptance or collection, as lit insures prompt returns. The mte of commi^sion or exchange generally charged by the Banks for collections is J of one per cent. If you desire to draw upon a man so as to realize a certain amount you must make the Draft for that amount and the exchange. When a Draft has to go through several Banks for collection, as, for example, if you draw upon a man in the United States, or a distant Province of the Dominion, and you don't know at the time of drawing what the exchange will be, add the words " ivith exrh'inge " after the amount in the body of the Draft. Ut, 1886. ist, 1885. C. P. Stan- \^UD, Agent, roceipto as be FOUM OF SIGHT DRAFT. f 75.00. Cohourg, Jan. Ut, 1885. At eight, for value received, pay *Henry Campion, or order, Seventy-five dollars and charge to account of 4. To A. R. IlAMMGR, Whitby, Ont. f S- T. VANCE. FORM OF DEMAND DRAFT. $150.50. Belleville, Oct. 2Gth, 1885. On demand, for value received, pay to the order of myself the sum of One hundred and fifty dollars and fifty cents, and charge to account of To A. R. McKiM, JIoHtreal. W. B. ROBINSON. TIME DRAFT irectinghim vorof I'.. F. may direct ) commonly $200.00. Toronto, Nov. Ut, 1885. Thirty days after date pay to the order of W. R. Lingham, Two hundred dollars, value received, and charge to account of To Isaac East, Oshama, Ont. S. T. VANCE. ixception, as ler sight, at OOBPTANCB payable at are allowed, *te of pay- ■0- li TIME BECKONED AFTER SIGHT $257.00. Hamilton, Jan. 3rd, 1885. Thirty days after sight pay to the order of W. R. Lingham, Two hundred and fifty-seven dollars, value received, and charge to account of To Isaac East, Oshama, Ont. S. T. VANCE. Nope.— TAe wor. Mb. W. J. Gage, Please pay to A. H. Jones, or order, One hundred and ten dollai;s, and charge the same to my account. $1 10-00 PETER COOPER. DUE BILLS. A Due Bill is a written acknowledgment of a debt.- When it is intended that a due bill should be paid at a definite time in the future, the date of payment should be specified. DUB BILL FOB HONEY. Due Samuel Clare, for value received, One hundred dollars. $100.00 Hamilton, Jan. 9tfi 18tt5. CAMP. The following is a common form of Due Bill, and is called an . U. Belleville, Jet /1. 1st 885. I. O. U. Fifty dollars. $50.00 JAS. SANDERSON. DUE BILL FOB GOODS. Due Sandford Farmer, Twenty dollars In goods from our store. •20.00. Kingston, Jan. SOtA, 1885. ROSS & BAIN. Note . —If you desire to make a Due Bill negotiable add the word bearer, or order, after the name of the pait; to whom payable. A Prom fpcdjicd sum When a whom the tr. settles so mut and it must h brouf^ht upon $100. Hundred Dolli $100. Dollars, value $100. Dollars, value $100. dred Dollars, i $100. of Commerce, $:540.-J at the Mercha with interest £ Note - is maker keeps Ills Mln the last exi * Drawer. 66 PROMISSORY NOTES. A Pmmmory Note !s a written promUe to p'ly unconditionally, and nt all euentn, a I tpmjii'd Slim of money. Wlien a note is f^ivcn or received, it should bo entered in the person's account with [whom tiic tninsactiou occurs, in the sumo manner as cash would bo entered. 'I'lie note hcttles so nmeh of the account, and may olian^'e hands many times before it becomes due, and it must be paid to the holder. Should suit be brouj^ht because not paid, it would bo brouj^lit upon the note instead of upon the account. FORMS OF NOTKS. NEOOriABLE WITHOUT INDORSEMENT. 5100. Lcndon, Oqt. 28t7i, 1885. Three months after date, I promise to pay f 8. G. Beatty, or boaror, One I Hundred Dollars, value received. * THOMAS WILLIAMS. $100. NEGOTIABLE BY INDORSEMENT. Hiiviiltnn, Oct. 28ffi, laSo. Three months after date, I promise to pay S. Clare, or ordor. One Hundr jd Dollars, value received. THOMAS WILLIAMS. NON-NKOUTIABLE. 1100. Toronto, Oct. 28th, 188."). Three months after date, I promise to pay George Doau, One Hundrod I Dollars, value received. ■*" THOMAS WILLIAMS. PAYABLE ON DEMAND. ?100. Kingaton, Oct. 28th, 188.",. On demand, I promise to pay Messrs. Jones k Brown, or bearer, Ono Hun- I dred Dollarti, value received. THOMAS WILLIAMS. PAYABLE AT BANK. $100. ' Brantford, Nov. lath, 1885. Three months after date, I promise to pay John Smith, or order, at the Bank I of Commerce, here. One Hundred Dollars, value received. PETER J. WILSON. PAYABLE AT BANK, WITH INTEREST. $340.4 . Belleville, Oct. 28th, 1885. Three months after date, we promise to pay Messrs. East & West, or order, I at the Merchants' Bank of Canada, here, Three Hundred and Forty Dollars and Forty-two Cents, with interest at seven per cent, per annum, value received. SMITH. .TONES & CO. Note - ,a always desirable bo flxa place for the payment of a note, which Is usually the bank at which the ime ot the partj ^ Maker keeps liU account. Henoe when making a note, state where youintend to provide funds for its payment , I as in the last example. * Drawer. ^Pajeo. 66 JOINT NOTE. $300. Montreal, Jan. \st, 1885. Three months after date, we jointly promise to pay R. Brown, or order, | Three Hundred Dollars, value received. i E. T. HAMBLY, J. G. SHERRY. JOINT AND SEVERAL NOTE. $210. Port Hope, Oct. 28th, 1885, Ninety days after date, we jointly and severally promise to pay Geo. Wall- bridge, or order. Two Hundred and Ten Dollars, value received. JOHN BROWN. WILLIAM BROWN. NOTE MADE BY A KAN WHO CANNOT WRITE. $100. Belleville, Mv. 5th, lS8.i. Three months after date, I promit i *» pay bo the order of Nelson Lingham, One Hundred Dollars, for value received. Sylas TuOiMPaoN, l his \ Witne»se». ROBERT + McNAUGHTON. F. Reid, ) mark Note— Head this over to the makar carefully that you may be able to prove that he ]knew what he signed. AN ACCOMMODATION NOTE Is one made payable to the order of an eiiirser, for th a purpose of raising money at a bank or from a privata lender. After it is endorsed the holder would have recourise against two parties. Questions fob Eeview— CHAPTER IV. What three qualities of an Accountant are essential to success ? What are the charac- teristics of Set II ? Do you keep a distinct account with each article of traffic as in Set I ? Under what general title do you classify them ? What are the characteristics of Set III ? How many days are allowed for the payment of a bill, after the time mentioned on its face expires ? W^hat are they called ? When the term of a bill is expressed in days, when do you begin to count the time to run ? Give examples. When the term of a bill is expressed in months, how do you determine when it falls due? G-ive examples of bills drawn on different dates and running the same tim3, fallin:; due on the same day. Explain how the term of payment may bo extended tliree or four days, by advancing the date of bills one day. When the last day of grace of a bill fails on Sunday or a bank holiday, when is it payable? Give examples of bills date I on diffjrent days and having the sam" time to run, in months, Ml ing due on the same dsiy. Give rules to determine when to date bills in order to advance the day of payment, and to tell the precise day when they become due. What are the char- acteristics of Set I V ? What booki are used in tliis Sot ? In business calculations do you enter fractions of a cent upon the account books? How do you proceed? Describe the Rill Bock. What is a Bill of Giwds? An Invoice? An Aocountof Sales? A Receipt ? Giv« different forms of Ueceipts. Are Receipts necessary in business tfansactions ? What is a Draft? How many pcions are interested in a Draft? How is a Draft at sight considered by the drawee and payee ? Give rules for making the Drawer's, Drawee's, and Payee's entries in case of a Sight Draft, In case of a rime Dm ft. How is a Draft accepted ? How may Drafts be made payable? VVhat is un Order? How is tlie signature to an Order considered ? Give examples of different kinds of Orders. VVhat is u Due Bill ? Give examples of a Due Bill for Money. For Goods. What 's a Promissory Note ? Give different forms of Notes. What is a Credit Note ? What is an Accommodation Note ? 67 CHAPTER V. DRAFTS-SHIPMENTS AND CONSIGNMENTS. The learner should carefully study and fix in his mind the following explanations on Drefts and Shipments, before commencing the work of Set V. A Draft is an order in the form of a request, usually payable at sight, or a specified time thereafter. A Draft at siglit is considered the same as Cash by the payee and dra'^ee. There are three persons concerned (thou,!;h often the same person acts both as drawer and payee), the drawer or mnker; the payee, 0/ the one in whose favor it is drawn; the drawee, or the one who is obliged to pay it, or, in other words, the one who accepts it. Banker's Drafts are generally uned to make remittances. When drawn upon any Bank in the Dominion they are payable on demand. RULES FOR JOURMALIZING DRAFTS.* CuEDiT the person or bank you draw on, because that person or bank pays an amount on your account. Debit the person who draws on you, because you pay a certain amount on his account. Sight Diiaft.— Drawer's ontry, " Payee Dr. lo Drawee." '' " Piiyct's entry, "Cash Dr. to Drawer." ^ " " Drawee's entry, " Drxwer Dr. to Cat;:i." Time Duaft. — Drawer's entry, " Payee Dr. to Drawee." " " Payee's entry, " Bills Receivable Dr. to Drawer. " " Drawee's entry, "Drawer Dr. to Bills Kjyable." SHIPMENTS AND CONSIGNMENTS. Merchants having goods'vhlch they cnnvot dispose of to rAvantage at home, often stnd them to lome person doing business in another place, by this means frequently find- ing a better market. These transactions give rise to the above "co ints. Consignor, is a name given to the shippei of goods or other property. Consignee, is the person to whom the g"'"js are shipped. Sliipment, as a ledger title, is a fictitious name given to merchandise, or other property, shipped to be sold on account and risk of the Consignor. It is made Dr. when the goods are shipped for their full value and for all costs ; it is credited by its net proceeds, when the account of sales is received, by making the ptison to whom the goods were shipped, or whatever he has remitted you in payment for it. Dr. to the shipment. After posting to the ledger it is dosed " To " or " By Loss and (!a!n " if an Account of Sales has been received ; if not, it is closed By Balance Iiiventoiy, for what it was invoiced at and charged with when the shipmc nt was made. * Tlie Icarrer'K luiiitl should bu MmrniiKUly inipreswil witli tliu iiienningiif them.' T\i\c% nthcrwtee it will take lilni a Inng time t(i divert hiiiifmits net proe3eds by draft on Bank of Mont- real for whicli he pays cash. (5) Adams receives Account Sales with drafton Bank of Montreal, $562.01. Jotirnal Entries. (1) Shipment to Benson, Dr. $550. 00 ToMdse. 550.00 (2) Adams Cou., Dr. 15.00 To Lank 15.00 (:J) Bills R^ceivable.JDr. .S09,.S8 Cash Dr. 300.37 To Adams' Con. 6 1 8.75 (4) Adams' Con., Dr. G03.7o To charges " Commission " Cash 10.80 30.94 662.01 (5) Cash Dr 562.01 To Shipment to Benson 562,01 Ecmitrks on \st Transnction. — If Adams had paid say $16 freight, insurance, or other charges on the shipment his journal entry would have been : Shipment to Benson, Dr $566 00 ToMdse. $550.00 « Cash (or Bank) ] 6.00 Pcmnrlison 2nd transaction. — If Benson on receipt of the Consignment had paid no charges he would simply have made a memorandum, but no journal entry, as there woiilrl ba'/e been no accoiint affected. He takes no responsibility more than the safe care of the goods until he begins to make sales from them. Rcmnrhs on 'Ard transaction. — The individual purchasing, or the account representing the thing received for, the whole or any portion of a Consignment is made Dr. to tlie Consignment. Ecmarks on ith transaction. — The method of making out Account Sales is' shown in an example at page 60. In making the Account Sales entry, first find what the total sales amount to, then the total charge?, and by deducting the total charges from the total sales j'ou obtain the amount which you are to remit the shipper, or credit him with. The " Charges " account is a representative account opened to show income from such sources an the charge made for insuring the Con.Mignmeut against fire wliile in your possession (your general policy covering the contunts of your warehouse), the chai'ge made for storing it, and the charge ma0. Paid for Advertising, $15.75. Accepted Ames, Holden & Co.'s Draft at 10 days' sig) . favor Thomas Smith, for $400. Received from J. W. Campion, Cash on account, $250. Cash salfs this day, $85.40. 8— Ref eived Cash for J. Templeton's Draft of Pub. 4th, $ 100. Cash sales this day, $95 . H— Sold J. W. Campion, Belleville, on account: — 5 cases, 60 pairs. Men's Stout Boots 72 " Men's Lasting Gaiters, .... .... 96 " Youths' Stout Boots 240 " " " Brogans 240 " Women's Split Boots 120 " " Congress Gaiters 120 " Pebbled Buff. Bals, 6 8 " 4. i< 4 " 2 " 2 " at $2.20 $132.00 u 1.75 126.00 II 1.80 172.80 II 60 144.00 II 1.10 264.00 II 1.25 160.00 11 1.-25 150.00 Cash sales this day, ^[15.4:0. Total $11.38.80 10— Bought for cash 10 shares of the Capital Stock of the Ontario Transportation Co. at the par value $50, $500. U— Shippad per Steamer Passport, and consigned toV/. T. Tilley, Port Hope, Ont., to be sold on my account and risk : 10 sides No, I Sole Leather, " Hemlock Spanish," 240 lbs. at 2oc. ; 1 roll No. 1 BaffaloSole, 300 lbs. at 22c. ; 2 rolls Pebbled Cow, 280 feet at 15c. Total, $168. Paid Insurance on same in cash, $10.50. * Your own name. 70 I 12—* Renewed Thomas Holden'a note for $500, due this day, for 2 months ; charges on renewal, $6.01. Caih tales thi» day, $U4.10. 13— Sold L. W. Yeomans, on account, I pair Misses' Calf Stitched Boots at $2.75 ; 1 pair do. Last- ing Gaiter BootH, $1.75. Total, $4.50. " Redeemed my note of December 9, favor of F. Lockett, by giving him Draft at 30 days on J. W. Campion, $H25. Ca»hMle», $124. 14 — Sold John Mansard, Brockville, ^ 10 catjes 120 prs. Men's Calf Stitched Boots 5 60 '3 should be ruled exactly as in form. They serve to keep the new account distinctly separated from the old ; a matter of greater importance than young book-keepers generally imagine. It adds greatly to the apj^earnnce of your book to begin the words " To*' and " J^y " all upon a 'perpen- dicular line. The Cash account may be tssted at any time, w'.ihoul balancing the Cash Book, bjt finding the difference between the debit and credit columns, on a scrap of paper, and compar- ing the difference with the Cash in band. This should be done daily when the Cash Book is balanced only once a weeK, as in the following form. The small figures in the form of Cash Book given on page 72 to the right of explana- tions are the footings of the Dr. and Cr sides. These figures should only be entered with pencil at the time of balancing the book, and erased as soon as the difference or Cash in hand is obtained. The explanations to the entries should begin, rs in form, on a perpendicular line, and should be written one-third smaller than the name of the account debited or credited. * The itadent wiU observe that in gpeaking of the money, columns wedesignate the ipaoe for doUan and the ipace for cents, anited, as but one column. 72 CASH BOOK— Set V. Br. Or. 1S85 1 April 1 To Stock, Araount invested. 3850 « 2 By Expense, A(;ct. Books, $12.50. Freight, $8.25 20 75 « {( To Merchandise, Sa'.eg this day, 3976 30 54 50 K 4 6 " Merchandise, Sales this day, 20 76 70 3975 80 30 55 ••3954 • Balance in hand, Balance brought down, 55 3975 30 3954 « CI 11 By P. M. Clarke, "^ Expense To J. W. Campion, Paid on Account, 150 « ft l( cc Raid for Advertising, Received on Account, 250 15 75 (( cc " Merchandise, Cash Sales, 85 40 (1 8 " Bills Receivable, Received for Templeton's Draft, B.B. 400 « « " Merchandise, 'Sales Ibis day, 95 (( 9i " Merchandise, Received for this day's sales, 115 40 (( 10 By 0. .T Co. Shares, Bought 10 Shares at par, 500 i( 11 " Ship'ttoTUley, Paid Insurance, 10 50 « c< To Merchandise, Received tor day's sales, 6016 06 114 70 13 676 26 •4338 * Balance in hand, Balance Brought down, 80 5015 05 5015 05 " 0. T. Co. Shares, tAnnual dividend at the rate of lOp.c. 50 l< 17 " Bills Receivable, Received for Hogart's note, B.B. 250 Ct ft " Interest, Received on above note, 5 17 Rent $100; Clerk's salary $140, 6604 82 • Balance in hand, 2126 60 ■ 240 00 5604 82 •3479 32 5604 82 * Bed Ink. t This dividend might be credited at once to Loss and Gain, but it is better to show It through another neoount first. Wjj here credit it to tlie ncct. representing the investment, bnt ynn mmt, be carcfal when closing your books to write it from this acct. into Los^i and Rain bef nre balancing the Shares acct., otherwise yon would chow in this aect. a decreas- ed resource. Another way of dealing witlidlvldend isto open a "dividend acct." and credit it with the amount, and whcu cloclng the books wilto it into Loss and Gain. 73 FILING BUSINESS PAPERS. The following forms represent Business Papers properly folded and filed. As the folding and filing of other papers, not represented here, should be after the same general form, we deem it unnecessary to give them. Fold all papers the same with, J of a sheet of foolscap. 10 50 .338 80 015 05 § > * < ki H^ P? re • ^ P re CC •a — -4 (* o*-^ 2. f» 00 ic;- 00- "S- ■^ . 00 re !■ .^ " •0 c s CO » n •O P •0 a 3 00 e: CO- g B Ci - 2 B. Si" 3i • * Acct. Sales for January, 1882. S. G-. Beatty, Acc't. of Sales, 18th Jan., 1882, $250.20. 70 200 15 240 00 00 50 00 479 32 604 82 3cour.t first. iks to write ;. a decroas- monn t, and «^ l-» . a^ Sl . S| to s: < • ih? 2.02 ^ i' Oi- re p © h-i re 5. • 00" r* 00 ^ 00 cr l>S to " t- I— ' 00 00 1 Trial Balance, Set. I, Taken, Belleville, 31st Jan., 1882, A. R. Brown, Acct'nt. 74 SET VI. PRODUCE AND COMMISSION BUSINESS— Single Propuietor. Books Used, — Day Book, Journal, Ledger, Bill Book, and Cash Book. Chabactebistics. — ThU, and the svcceeding 8):t, are intended to illujttrate the principles and practice of a simple cnmwission, in connection rvttha general merchandise business ; as also to so'tne extent the giving and receiving of notes, drawing and accepting drafts, with allore- ance of interest and discount ; keeping a bank account in the. Ledger, drawing and receiving cheques, etc., etc. This Set illustrates the business of a Single Proprietor, closing with a net loss, and arranging to admit a partner, for the continnance of the business, in Set VII, li^T. John, N. B., January Ist, 1885. Student inveBts in Canh $5000. * Paid Cash for Office Furniture $350 and for Books and Stationery $50. Total $400. 2— Deposited in the Montreal Bank $4000. 3— Bought of W. Lingham, on my Acceptance at 10 days, 50 bbls. Ejrtra Flour $13.50, $675 ; 100 do Superfine Flour at $8.25. $825. Total $1500. 4— f Paid for three months' Rent in advance, per Cheque, $375 ; Received from Jones * Co. Hamilton, to be sold on their account and risk, 100 bbls. Extra Flour ; paid Freight and Drayage on same per Cheque, $213.50. 6— Sold for Cash, from Jones & Co.'s Consignment No. 1, 50 bbls. Flour at $11.40, $570. Sold W. B. Robinson, on account, 75 bblb. Superfine Flour at $9, $675. 6 — J Took out open Policy of Insurance on Warehouse and contents for $30,000 at f per cent ; paid Premium, per Cheque, $225. Sold for Cash, 25 bbls. Extra Flour at $14, $350 ; 25 do Superfine Flour at Vi, $225. Total, $575. Deposited in Bank $1000. 8 — Received from Jones & Co., Hamilton, their second Consignment, consisting of 100 bbls. New Mess Pork ; paid Freight and Drayage on same per Cheque, $247.50. Sold J. Cummings on his Note, at 30 days, from Jones & Co.'s Consignment No. 1, 60 bbls. Flour at $11.50 $575. 9— Rendered Jones & Co. Account of Sales of Flour, represented in " Consignment No. 1." My charges on same are as follows : Storage, Insurauce, Cooperage, etc., $21.43 || Commission 2j per cent, on Sales $28.62 ; Jones & Co.'s net proceeds $881.45* Total debit to Jones c$' Co.'s Consignment No. 1 , $931 .50- 10— Sold from Jones 4 Co.'s Consignment No. 2, 75 bbls. Pork at; $20, $1500. Received in pay- ment Sight Draft on James Wilson & Co. for $800 ; § Cash |;700. Deposited in Bank $2000. 11 — Accepted Jones & Co.'s Draft at 10 days' sight, favor of W. H. Davy, for $500. 12 Receivied from W. West, Toronto, to be sold on his account and risk, 1000 bush. Wheat ; paid Freight and Drayage on same, per Cheque, $175. 13— Sold from W. West's Consignment No. 1, for Cash, 500 bush. Wlieat at $3.25, $1625. 14 — Received from Jones & Co., Hamilton, their third Consignment, consisting of 500 bush. Rye, 300 bush Oats ; paid Freight and Drayage on same, per Cheque, $180. 15 — Sold from Jones & Co.'s Consignment No. 2 to H. Holden, on ivccount, 25 bbls. Pork at $21, $526. 16 Closed Jones & Co.'s Consignment No. 2, and rendered Account Sales of same. My charges for Storage, Cooperage, etc. ,$19.78 ; Commission 2i percent, on Sales, $50.62; Jones & Co.'s Net Proceeds, $1707.10. Total debit to Jones g( Co.'s Consignment No. 2, tl777.50. 17 — Received from W. West, Toronto, his second Consignment, consisting of 2000 bush. Canadian Club Wheat ; paid Freight and Drayage, per Cheque, $325. * Open an Office Furniture account for this, and charge Books and Stationery tu expense, t Open a Bent account for this. % Open an insurance account for this. II A general " Cliarges " account is sufflciRnt to represent the returns from all charges except your Com- mission, which requires a separate account,. } The only distinction between a Sight Draft and s Cheque is that the former is drawn on an individual anil the latter on a bank. Both being pa> able on presentment are considered the same as Cash. As this draft will be placed in the bank for Collection we shall reckon it aa Cash at once. 75 18— Slid VV. B. Robinson, on account, from Jones & Co.'s Consignment No. .3, BdO bush. Eye at $1.40, $700. Bought of John Downing, on my note at 30 days, 400 bush. Timothy Seed at$S, $1200. 20— Reoeivod from Jones tc Co., Hamilton, their fourth Consignment, consisting of 200 bbls. Extra Flour ; paid Freight and Drayage, per Cheque, $425. Deposited in Bank $1000. 21— Paid my acceptance, favor of W. Lingham, due the 16th, per Cheque; Face of Acceptanoo $1500; Interest on same, 6 days, $1.25 ; *and protest charges $1.04, Amount paid $1602.29, And also discounted my Note favor of John Downing for $1200, due February 20th. Discount off, MO days, $7. *Net amount paid, per Cheque, $1193. 23— Received of W. B. Robinson, cash in full of acct f 24 — Paid my acceptance favor \7. H. Davy, duq this day, per Cheque, $600. Deposited in Bank $1875. INVENTORY OF RESOURCES NOT SHOWN ON THE LEDGER. J Merchandise; 25 bbls. Extra Flour at $13.50, $337.50 ; 400 bush.* Timothy Seed at $2.75, $1100, Total $1437.50. \\Rent, two months paid in advance, $250; /?MMm»(?e, 1 1 months' un- expired policy, $200.25 ; Furniture valued at $350. Net loss, $81.09. Note.— What should be done at the time of closing the books, when the property represented by such accounts ai Furniture has depreciated, will be learned at page 129, under the head of Plant Account. TO THE STUDENT. t Having journalized and posted this Set, take a Trial Balance and Statements, and prove your work . to be correct. You will then close the accounts, open a Loss aud Gain account and transfer the net loss to the proprietor's account. Then bring down in black ink, all Liventori/ Balances " To Balance," and Balance of Real Accounts, such as Cash, Bills receivable, Personal Accounts, etc., either " To"*or "By Balance," as the standing of the accounts may show, making no transfers to a Balance Acct. If au account is closed " To B dance," bring down the balance on the credit side of the same, " By Balance," and if an account is closed " By Balance," bring down the balance on debit side "To Balance," dating the balances brought down. When all the balances are* thus brought down, the Resources and LlahiUties will be correctly located in tlie Ledger ready for the commencment and continuation of Set VII. Before posting Set VII., take a Trial Balance of those accounts that have been brought down in the Ledger, to asoi-rtain if the transfers have been properly made. * As Interest and Discount are the same in nature and effect, both representing the nse of money, and both indi- cating the amount paid or received for the use, we do not deem it necessary to keep two separate acconnts. See " Dia- connting Notes and Entries" for full explanation. The protest charsjes is the amount of expense incurred by tho holder of the acceptance in having it protested for Non-piymont by a Notary Public and which he (the holder) collects from the acceptor. See "Protests" for full explanation. t Leave this amount blank until yon have posted thus far, then refer to the Ledger for amount. t .Vmong the open Ledger accounts are \V. West's Consg't No. 1 ..lonps k Go's Consg't No. 3, West's Consg't No. 2, and Jones h Oo.'s Consg't No. 4 ; the former two of which show an excess of the credit side, and the latter two an exces* of the debit aide. As the business for which these accoimts were opened is not concluded, they are treated in this state- mei t precisely like personal accounts, watvtnjj our immature claims for charges and commission. II The value of unexpired rent and insurance, based upon advances made, should unquestionably bo reckoned among our resources. We therefore place the amount of these on the credit side of their respective acconnts and treat tliera m Wo do inventories of goods unsold, and only close to Loss and Gain the expired portions. A moment's reBectlon will show you that in this way we charge the past year with only its own proper charge under these heads. 76 STATEMENT— Set VI. Instead of making out the Trial Balance and Statements of Losses and Gains and of Resources and Liabilities separately, you may uow write them all in one. COMBINED STATEMENT. Lonea. Oalna. Dr. Footing L. F. 38 Ledger Aocounti. Or. Footing. lUsourceB. Llabllltleg Stock, 5000 10646 38 Cash, 10275 370 12 60 2700 676 600 526 38 39 39 39 Merchant ioe, BIIIm Ueceivable, JoneH & Co., H. llolden. 1250 2588 55 1437 575 525 50 2088 65 9875 40 Montreal Bank, 6361 29 4513 71 350 40 Furniture, 350 125 375 40 Rent, 250 50 60 41 Expense, 18 76 41 79 21 24 225 176 180 325 426 11 41 42 42 42 43 43 Innurance, Charges, Coinniission, West's Cons^'t No. 1, Jone8& Co.'fi Consg't No. 3, West's Consg't No. 2, Jones & Co. 's Cont^g't No. 4 41 79 1625 700 21 24 206 325 425 25 1450 520 4 71 2 29 43 Interest and Discount, •STOCK'S net Inv'st »6000 7 •81 o» • " " Lobs 81 09 • " " Worth. • •4918 91 206 26 206 25 26927 29 26927 29 8977 46 8977 46 SET VII. PEODUCE AND COMMISSION BUSINESS— (7onrietorship : the bttsiness to be conducted precisely as in the previoii.t Set. The new partner, James Fenmioh, invests cash equal to the net investment of tlie former proprietor, whioh is shown in his account after carry hig to it the loss of the previous husiness. St. John, February Ist, 1885. The proprietor admits a^ apartner in the business, James Fenwiok, who is to make >i cash investment equal to the present net worth, the business to be con- ducted under the firm name of -f & Co., each partner to give his time to the business and the losses and gains to be divided equally. James Pen wick invests Cash, $ Deposited in Bank $4000. S — Sold George Wallbridge, on his Acceptance at 10 days, from W. West's Consignment No.l, 500 bushels Wheat, at $S.40, $1700. Closed W. West's Consignment No. 1, and rendered him an Account of Sales of the same. Our charges for Storage, Insurance, etc,, $22.91 ; Com- mission, $83.12 ; W. West's Net Proceeds, $3043.97. Total debit to W, West's Consignment No. 1, $3150. ^Redlnk. tStndent's Name. Note.— When forming a partnership, a written agreomei^ called " Articles (or Indentnrc) of Co-partner,^hlp," ahonld be made out and signed in the presence of a witness (nee form In a snbseqnent part of the book) embodyinR all matters of importance. This precantlon may sare expensive law suits, and endless trouble. A Arm name and style Is adopted at the outaet and adhered to throughout ; that is, yon cannot sign " Jones &- Brown " to-day, and to-morrow ".Jones ft Co." 4 — Bought o them ( $ C— Paid Jon( 7— Solwesaion to be given March 1st. Received their Note at 3 months, for the following considerations and amount : — Four years and ten months' lease of Store, together with one month's prepaid rent, $2000. Ton months unexpired policy of $30,000, on Store and contents, $187.50 ; Furniture, $300 ; J Good Will, $2000; Totftl, $4487.50. Accepted W. West's Draft at ten dnys, for balance of his acct.. $ *Soldfor Cash, 4 hhds. Muscovado Sugar, 6920 lbs., at I2c., $830.40. Paid Jones & Co.'s Sight Draft, per Cheque, for balance of their acct., $ '•' Deposited in Bank, $2712.03. Total net gain, 64512.52. 28. The fullowin}5 business papers are required to be made out, by the Student, from Sets I VI and Vn. From Set VI. — Receipt for rent, paid Jan. 4tb. Note received from J. Cummings, |Jun. 8th. Account of Sales rendered Jones & Co., Jan. 9th. FaoM Set VII. — Geo. Wallbridge's acceptance of February 3rd. Sight Draft |received from W. West, Feb. 16th. Account of Sales rendered W. WcHt, Feb- 21st. * Refer to Ledger for amount of theBe occojint?. t See balance of Solomon Johnrt" accoant in Ledaer. tThe Good YJIU means the bonns paid for the privilege of Becnring an establiahed business, one that I i! Well known and possesaeB liberal patronage. 78 I SINGLE ENTRY. Exfmpll/ied in apartnership businesg, concluding with nn illiiatratinn of the partner>hlp\ netlletnent. Prtaentlng, also, a practical illustration of the process of changing a set of books /com Single to Doable Entry. Considerable space has been devoted to the following Sut, in order that the Student may become thoroughly conversant with Sinuile as well as Double Entry. The authors are not among those who condemn Single Entry as wholly inadi!(|uato to the demands of busines! and unworthy of consideration. To a person who understands and appreciates the advantages of Double Kntry no further illustration than this Set aflfords will be necessary to | show its superiority over the other system. But as there is a large class of dealers, who, for various reasons, are not inclined to keep their accojunts by Double Entry, it will be I serviceable and acceptable to every ncconntant to understand both systems. The principles of Single Entry are so easy of comprehension as scarcely to need I explanation. Accounts are usually kept only with the persons with whom you have dealings, and although a Cash Account, Merchandise account, and other Property accounts maybe I kept in the Ficdger, yet just so far as you introduce any other accounts, except those witlil persons who owe you, or whom you owe, so far do you encroach upon the peculiar province j of Double Entry. The principal books of Entry are a Day Book and Ledger. Besides these we introduce the Cash Book and Bill Book, as they are very importantl books, and should never be dispansed with in a business where there are any considerable [ dealings in Cash or Notes. These auxiliary books are kept in the same manner as in Double Entry. All Transactions are entered in the Day Book, which require a debit or credit to any! person with whom you have dealings, and as this is the only book from which you po8t,l every entry which you wish to bring into any account in the Ledger must be enteredl here. In entering purchases it is allowable to say, " Amount as per Bill," or " Amount aij per Invoice," and omit the detail of items, since you have the invoice filed away, orl pasted in a book so that you can refer to it at any time ; but in entering sales on acct. , thel items should always be mentioned in the entry, whether your books are kept by Single otj Double Entry, as this is your legal evidence of the transaction ; and in order to be takeol as evidence, each article must be distinctly named. See Form of Single E.vtby Dat| Book, at the end of this Set, page 81. X m 79 SET vin. DRY GOODS BUSINESS. TWO PABTNKR8. The work of this Set is to bo done by Single Rntry, according to form on pa}j;e Rl. London, March 1st, 18«.">. J. S Milleh and F. Lane this day commence the Dry Goods Vmsincsa, at No. 1 U .St. .lamos street ; aiyreeinff to shaio gains and losses according lo capital invustod. .T. S, Miller investps :— Canh, 8 1 ■)()() ; Merchandise, $S00 ; Note for $fi{X), favor .1. S. M., sijfned byThomasOibbard, dated •lanuary M Ist, at ;t() days ; an Accepted Draft for $400, drawn by J. Jones on D. Ilobliii, dated .lanuary 20th, at !»(> days. Balance due from J. R. Marvin, $12i5. Total Invfxtmrnf,$'M2li, F. Lane invest :— Ciwh$i:.(M); Merchandise, $1200 ; Real Estate, $700; Note ajrainst 8. Fowler for $200, dated January 25th, at fiO days ; Note against H. Jackson for $«0<), dated November 2;trd, 1884, at fi months, with interest at 7 per cent. Interest accrued on above Note to date, 3 months and fi days, $U.!»4, Totiil Ini'entmiint, $4414.'.t4. 2— Bought of W. McKay, on acct., Invoice of Merchandise, amounting to $1800. Sold Robert Carey, on aoct., r>0 yds. Blk. Broadcloth at $2.2.'> ; 12 Fancy Neckties at $1 each : 15 doz. pra. Lisle Thread Stockings at $;K25 per doz. 3— Sold James Goodwin, on account, 50 yds. Flannel at fiOc. ; 25 yds. Broadcloth at $:t.75 ; fiG yds. Cassimere at $1.25. Received his Draft at 10 days' sight on A. Benson for .555, the balanoa to remain on acct. 4— Bought of H. Simmons, on acct., Mdse. invoiced at $200 ; gave our Note, at 00 days, for $1 full time on the fttcc of the note and add ' to the prlnciiml, then discount the amount. In this case, .Jackson's note boars Interest at 7 per cent, for six mouths and H diiy<, and wiil amount when paid to 8S28.47. The discoun''. on .this amount for the 2 months tlie luite has to run before it bi>< "iiies due at 7 per cent, is 99.66, and this deducted from 9j428.47 icnre* $818.81, the net proceeds received from the Bank. 81 EXAMPLE OF SINGLE ENTRY— Set VIII. London, March Isf, 1885. L.F. riT 58 12(' 41 ■19 39 45 20 J . S. Miller and F. Lane this day commence the Dry Goods business, invefeting-, and agreeing to share the gains and lossL'H, according to articles of co-partnership. -Miller's investment. J. S. Miller. Cr. For the following investment : Cash as per Cash Book, Milse. as per Inventory, Note and Draft as per 15111 Book, Balance due from J. R. Marvin, •Lane's investment.- F. Lane, Cr. For investment as follows : Cash as per Cash Book, ^Mae. as per Inventory, Real Estate, Lot .Mountain St., Notes as per Hill Book, Interest on II. Jackson's notp, * J. R. Marvin, To Balance favor J. S. Miller, Dr. W. McKay, By Mdse., as per Invoice No. 1, Cr. Robert Carey, Dr. To 50 vds. Ulack Broadcloth at ....$2.25 " 12 Fancy Neckties " 1.00 " 15 Dozen Prs. Lisle Thread Sijckings at 3.-5 James Goodwin, To 50 yds. Flannel at " 25 " Broadcloth at .., " 66 " Cassimere " -Cr. By Draft at 10 days, on A. Benson, Dr. .a!0 (JO . 3.75 . 1.25 H. Simmons, By .Merchandise, as per Invoice No. 2 Dr. To our Note at 60 days for Cr. Robert Carey, By Draft at sifrht on W. Johnson, Cr. 1500 800 1000 125 \&^0 1200 700 1000 14 112 12 48 .30 93 82 94 .3425 50 00 75 4414 125 1800 173 94 25 206 55 200 100 50 25 Note.— The mles of tho 5th and 0th are merely entered in the Ciish Book and Dill Book. As the goods were paid I lor in full at the time of purcliase, no personal aoct. is affected, and, consequently, no entry is requiretl In the Day I Book. *Thi9 debt of Marvin's forms part of Miller's investment, but as this is Single Entry Bookkeepins you cannot debit 't to Marvin from tho entry In which Miller is credited with It, conEcquently, you make a separate entry in order to I liebit M.irvin. i ,iH"d 82 CHANGING SINGLE TO DOUBLE ENTRY. Having finished the posting of this Set, according to the principles of Single Eniry, you will now proceed to change the books to Double Entry. You have learned from tiie Sets already worked out that Double Entry coiuprisas a perfect and continual record of Rf;soiiro3s and Liabilities ; and by examining the Ledger of the last Set as it now stands you will find tliat Single Entry comprises an imperfect record of 11 'sources and Liabili- ties, or a record of only a portion of them, viz., personal accounts. Whenever this deficiency is supplied tbe requisites of Double Entry are mut. Therefore, TO OONVEBt SINGLE ENTRY BOOKS TO DOUBLE ENTRY. RULE. Cam/ ths net giin or loss of the bisiness to Stock, or the Proprietor's accounts, tlien open such (tddlti'inal accounts in the Ledger as are iiecess irij to exhibit the entire Resourci's and Liabilifiu of the concern. It will be necessary, in order to effect t'le desired change, to ascertain the net worth, then the gain or loss. This is done by making out a .state nent of Resources and liiabilitios ; then, if no new capital has bjen invested, or none withdrawn, by taking the net capital at starting from "the net worth at closing, you may ascertain the gain ; or, in a losing business, by taking t!io net worth at closing from the net canital at starting, you may asoertaic the loss. Th'U find the proportion of gain or loss of ea''h partner. The Risources and Liabilities are found in Single Entry, by ascertaining from the Cash Book the amount of cash on hand ; from the Bill Book the resource of Bills Receiv- able and tlie liability of Bdls Payable; from the inventory the value of unsold iner. chandise, and from the Ledger the standing of personal accounts. Having made out the statement of Resources and Liabilities, found the worth, and the gain or loss, and carried the proportion belonging to eacli paitner to his account, then open Cash, .Merchandise, Bills Ricnvable, Bills Payable and Real Estat ■ accounts in the Ledger, entering the fievjral amounts in each from the Statement. Proxe thai your Ledger is in equilibr'mm, then, proceed with the transactions of tiie next Set by Double Entry, using the same jjodger without disturbing any of the accounts a ready opened. The Resource and Liability statement, if correctly made out, must be in balance when you included the proprietors' worth, consequently when ymx get your Ledger accounts to agree with it your Ledger must be in balance ^Iso. TO CLOSE A SINGLE ENTRY LKDGKR. As we convert the Single Entry Ledger to Double Entry at the close of th' •> Set, 't is | well that wesliould explain how a Single Entry Ledger, that is intended to be continued in tliat method, should be closed. Take stock and make out a statement of Resources | and Liabilities, the differenee between which is your capital. Find the gain by iubtracting the worth when you last closed the bo )ks from the present worth, allowing in your calcula- tion for any now capital added or any withdrawn. Credit the proprietor's account witli the gain, thjn balance his account and bring down the balance on the credit side which is iiis I worth at tlie beginning of the new business year ; then balance each personal account riini bring the balances down. It will be well, in order to have it p'^rmanently on record, audi eaijy of reference in future years, to copy the Statement of Resources and Liabilities, as well as the work of finding the gain, into the Day Book. \iMA- 83 SET IX. DEY GOODS BUSINESS. ife TO THE STUDENT. The books to be used in working this Set by double Entry are Day Book and Journal combined, Cash Book, Bill Book and Ledger. The eight previous Sets have all been conducted upon the old Italian method. Another stylo of keeping accounts will now be introduced, which is far more in use at the present time, and by which much useless writing may be saved. It will at first require more thought on your part than the previous Sets have done, but you are now supposed to have mastered the elematirary principles of Book-keeping, and to be prepared for a higher step 06 the road to a thorough knowledge of accounts. The plan of doing this Set is to entirely )euse with the Day Book in history form, and use instead a Day Book in Journal form denominated the Journal D ly Book, in which the entries are recorded in such a manner, iasnoti .iy to present a oompleto history of the business transactions, but also to furnish debits and credits unJar the proper Ledger titles, ready for posting ; thus rendering it useless to keep a Journal. The general rule for Journalizing now becomes a general rule I for determining the proper debits and credits in making original entries. In writing up Journal Day Book, romembjr that no Cash trans ictlons appiax in it. The Cash Book used in connection with Sets V. to VIII. inclusive, was only for the purpose of preserving the Cash account from error, and giving you an idea of how it should be kept ; but as used in this Sjt it has a still more important office. It is the exclusive [and only hook of original entry for Cash trans icfiona, and these transactions are posted \ directly from it to the Ledger. See form and explanation of Journal Day Bojk; and Cash [Book at the end of the Set. DRY GOODS BUSINESS.— Set IX. I Lonilon, Ont., April 1st, 1835. — J. S. Miller and P.Lane have this day changed their books from Single to Double Entry. Bought of J. R. .Murvin, on acct., Goods, as per itivoice, $700. iiuiifrlit of Jones & Go. on our note at 3 mouths, with interest at 9 per cent., Mdse., ns per invoice, $2500. 1 2— Sold Robert Carey, on acot., 2 pieces Scotch Tweed, 35 yds. each, at $1.50; 4 pieces Oassimere, 30 yards eiicii, at $2. I 4— Bought for Ortsli 10 pieces Factory Cotton, GO yards each, at lOc. Sold C. A. Langford for his note at 2 months, with interest at 10 percent., 2 cases Prints, 1500 yards, at hie. ; 3 cases Irish Linen, IJSO yards, at 25o.; 1 case Scotch Tweed, 4>0 yards, at f l.JO ; 1 case Broadcloth, 175 yards, at $4. Cash Sale^ this day, $134.75. 1 6— Shipped per Steamer Alexandra, and consigned to B. Way, Picton, to be sold' on our account, 8 lies. Broadcloth, 20 yards each, at $4. Paid freight on same, $G.50. Cai/t Sales, $136.20. |8— Sold Real Estate for $1250 ; received in payment Draft at 15 days on Thomas Davis for $850, cash for the balance, $400. 19-Gare W. McKay Draft at 30 days on James Goodwin for $287.50. Cash Sales, $195. i 10— Ri'ceived from Robt. Carey, Cash on account, $100. Sold A. Diamond, for Cheque, 4 yards Ulack Broadcloth at $5 ; 3 yards Scotch Tweed at $2 ; 1 Vest Pattern, $5. Caih Sales this day, $230.15. |12— lioiight of Henry & Co. 20 pes. R^d Flannel, 40 yards each, at 30c.; 10 pes. Wincey, 30 yds. each, at 25c. Gave in payment Sight Draft on H. Simmons for $260.50. Cash for biiiiii,ce. Cash Sales, $200. I H-K. Lane withdrew on private account, $150. Paid Gas Bill, $14.50. Taxes, $45.70. Cash Hales, $170. 84 16— Received from B. Way, Picton, acct. of Sales of Mdse. shipped him 6th inst. The net proceeds, remitted per Cheque, amount to $760.75. 17— Sold S. Edsall, on his Note at 3 months, 4 pes. Summer Tweed, 35- yds. each, at $1.50. Cash Sales, $180. 18— Had S. Edsall's Note" discounted at Montreal Bank. Discount off at 7 per cent. $ Cash, received, $ • Paid cash for a Bill of Mdse. bought at auction $75.20. 20— Paid Clerk's salary, $140. For sundry Expenses, $18.50. 21— Bought for Cash, from T. J. Claxton & Co., Mdje., as per invoice, $1200. Paid for Cartage, $1.50. Sundry Expenses, $9. Cash Sales, ^245.50. 22- Bought of J. G. Mackenzie & Co., Mdse., as per invoice, $800. Gave in payment our Acceptance at 5 days, $530. Cash for balance, $250. Cash Sales, $725. 23- Bought of J. McKay, for Cash, Mdse., $150. J. S. Miller withdrew on acct., $200. Cash Sales this day, $475.50. 26— Paid Cash for our Draft of 22nd inst., favor of J. G. Mackenzie & Co., $ Cash Sales. $695.40. 30— Bought for Cash, of T. Anderson, Mdse., $100. Paid for insurance, $14.75. Cartage, $3.20. Cash Sales, $480.25. INVENTORY OF RESOURCES AND LIABILITfES NOT SHOWN ON THE LEDGER.f RESOURCES — Merchandise remaining unsold, $4300. Interest Receivable, accrued to date on Longford's Note, $13.87. LIABILITY — Interest payable — Accumulated on our Note favor Jones <$• Co., $18.12. Total net gain, $2022.04. Miller's share, $871.59. Lane's share, $1151.05. TO THE STUDENT. We would here again impress upon the stuiieut the necessity of stud}'. There is no better test of a person's knowledge of Book-koi'ping than that connected with what you have just been doing, — changing books from Single to Double Entry, llcre the matter in made clear, and easily understood. See that you master thoroughly the princi/jlts involvi'l, so that if you are called upon, in the course of your business career, ti» change books fnim Single to Double Entry, you may be able to do so intelligently, and to explain and give the reason for what you do. Impress this point upon your mind ; that the facts you require to ascertain to open books by E^uble Entry, or change books from Single to Double Entry, are the Eesources and Liabilities of the concern. TO CHANGE DOUBLE ENTRY BOOKS TO SINGLE ENTRY. Discontinue in the Ledger all accounts hut those with individ lals, but continue tlic use of the auxiliary books, the Cash Book, Bill Books, etc. • Tliis is excliisivoly a c&ah tratiBaction, and entered on both the debit and craiit side of the Caah Boolf. Enter the full amount of Nol/O on the debit side, as it tlio firm actaally recoiv.Hl it, and then enter the amount paid tor discount on the credit side. See the Caah Bock of Set IX. If the proceeds had been left in btak j-ou would also make cash credit by Bank, Hamc as for a deposit. t There Is a marke 5369 i50 3015 jOl 8384 |r.l I ,sh account ause Cash and coinln<: vc therefore ,ions as are determine ived. l*""'' it, next the line a little i forit,m'Xt same Hue a , slight spiicc look t»ed, liriiif I ■liiue it «» •» L.F. V 26 V 24 24 26 V 24 V 24 V V 25 25 J 24 21 20 By Merchandise, « Ship'ttoWayNo " Merchandise, " F. Lane, " Expense, " Discount, " Merchandise, " Expense, " Merchandise,. " Expense, " Merchandise, (I " '• J. S. MUler, " Bills Payable, " Merchandise, " iipense, Invoice of Cotton, 1.1 Freight on SRjne, Invoice from Henry & Co. Withdrew on Account, . . . . c Gaa Bill, $14.50, Taxes, $46.70 On S.'Edsall's Note, Bought at Auction, Wa?es, $140, Books, $18.50 T. J. Claxton & Co.'s Invoice, Cartage, $1.50 ; Repairing, $9 Invoice, J. G. McKenzie & Co., D.B., Invoice, J. McKay, Withdrew on Account, Draft favor, J. G. McKenzie & Co. . . . T. Anderson's Invoice, Inaurance, $14.75 ; Cartage, S3.20,... Mdse. Total to debit of Merchandise, . Total to cr. of Cash, , . Balance* 60 45 75 1200 250 150 100 50 20 Sundries. 1880 70 6 150 60 3 158 10 200 550 17 '1880 50 20 76 50 50 95 70 11 3038 •5346 43 8384 54 Post from the Cash Book and Journal Day Book in the same order, as regard j the dates when the transactions were entered. The above is n very convenient form of Cash Book to be kept in connection with a general merchandise business. Tlie feature of special columns may be extended, if desirable, as is shown in a subsequent part of the work. It will be seen that all Cash Entries, debit and credit, are taken directly to the Ledger from this book, together with all accounts producing or costing Cash. The amounts distinguished as " Per Petty Cash Book," are entered here from a book showing cash sales corresponding with the contents of the till. The columns headed " Mdse." will be. found very convenient for posting. Should the Cash transactions of a month extend over several pages, the footings of these columns are brought forward to the end of the month and posted in total. The check marks in the column following dates are made to indicate that the amounts opposite, in the " Mdse." column, are not to be posted, and the figures are the pages of the accounts in the Ledger to which the amounts in the " Sundries" column opposite have been posted. Tlie method of posting from the Cash Book is extremely simple. The amounts in the " Sundries " column on the Dr. side are posted to the a-edif of their respective accounts — the page of the Ledger being indicated in the folio column : and the amounts in the " Sut\dries " column, on the Cr, side, to the efehit of their respective accounts- The footing of the " Mdse." column, on the Dr. side, is posted at the end of the month to * Heii Ink. NoTK— In inftkinR entries in yonr Cash Book, nlwnyfi ob'serve the nbove stylo of i\rran=;cment, nnil Never ZNTKii 'I'liB liTI.K CASH anywhere in this book except the hearting at tlio hoKinninf? of a imge ; Cor you enter '."thiim in it bnt Oinh. It is unneccas.ary to use tli"^: words " roi-eived " and "paid" in explainins? an entry, as mitliiiin is entered on the debit Bide of this account except Cash r*ccived, and notliing bnt Cash paid out on tlio er«dit«ldo. In bftlanclna the Ciwh Book aiwayn rnle that side first upon which appears the greater number of entries »nii have llu! fooilnir« of thi' two sides dircotly opposite one another. 1 Wlioiv long explanations have to be given In a Ca's i>o CO rf». 10 O « 00 -I o CnCOOCTCOh-'MO oooooomo OS en o :t )-• CO o to m OS o o M K- CO CJ< «o tn 00 Wi CO l>3 O O^ CO o o to 1—1 to CO CO CO c;i 03 h- ' CO CO 00 00 CO CO CO CO CO C2 l-i CO »*>• 05 © CO P-i OJ W 05 M O O O en CO CO CO O ~1 o o O (% 00 00 ^3 L. F. U M PI H W W M W o CO A O A B 2 ft. t9 CT>' « 3-. (w El O <-»- "^ I" CO ITJ a? Hd '^m * ^;Htni (T & CO f CO W \\ IMAGE EVALUATION TEST TARGET (MT-3) 1.0 lifi^ I I.I 125 1^ ll 32 e «£ " Hi 140 L25 iU III 2.2 2.0 1.6 V <^ /] 1> ',^ Hiotographic Sdences Corporation 23 WEST MAIN STREET WEBSTER, NY. M580 (716) 872-4S03 \ V ^^ \\ 6^ J U2 BALANCE SHEET. In oommeroial language a " Balance Sheet" signifies the tystematio arrangement of facts, for the parpose of exhibiting at a view the oondition of busihess. The forms in use vary, according to the necessities of the occasion or the ingenuity of the accountant. The following explanation will be found serviceable in preparing this sheet for the entries. The method of enforcing the facts will be apparent to any diligent student. 1. Take a sheet of paper of proper sise, and for a border rule double red lines around the margin. 2. Rule parallel head lines, leaving proper space for double captions, as in the example. 3. Ascertain the number of Ledger accounts to be represented, which will embrace all the accounts in the Trial Balance that do not cancel. Ifthebusinet is that of a single proprietor, usually called " Stock" business, rule in pencil as many lines as will •contain all the accounts and^ve additional. If it be a partnership business with two or more partners, rule three additional lines for each partner ; thus, for " Stock" business, five lines more than all the accounts ; for two partners, ei<)ht lines more than all the accounts ; for three partners, eleven lines more, and so on. 4. Lay off proper spaces for debit and credit money columns ; first for the footings of Ledger Accounts, second for Qains and Losses, third for Stock, or, if partners, for each part ner — and fourth for Besouroes and Liabilities ; also a $in,gh money column for Inventoric % and for Ledger titles and their Ledger folios. The position of these columns will bo seen in the example given. 6. After denoting the proper space for each heading, which can be best done with pencil, ooirTience to rule in red ink at the right hand and bring all the lines of the two captions, " Real Accounts " and " Stock " or one of the partners, down to the lower pencil line. For the other partners drop two linos. For Losses and Gains drop two lines in *' Stock" business, and one additional for each partner. 6. Rule the foot lines as shown, and the schedule will bo ready ^to receive the accounts. SHIPMENT GO'S AND MERCHANDISE COS. " Shipment Company" is a term used to represent your interest in merchandise or other property shipped by you to be sold on joint account and risk of yourself and other parties ; or it may represent your interest where you receive intelligence that other parties have shipped to a third party and that you are interested. It is made Dr. for your interest and share of the costs in the speculation when the shipment is made, and at the same time the parties interested with you are debited for their share of the merchandise and charges ; it is credited with all incomes, and, after being post- ed to the Ledger, closes " To" or " By" Loss and Gain. Should you wish to close the Ledger before an account of sales has been received, credit Shipment Company " By Balance Inventory" for the amount it cost you. The title " Merchandise Company " is a ficticious name given to goods or other property received by you to sell on joint account and risk. It is made Dr. to the consignor, when received for only your interest, and the charges incurred on the full Shipment. The consignor should be credited for your share of the goods unless settled for at the time of receiving them, the same as though bought of him on account. In selling goods that have been received to sell on joint account, Cr. Merchandise Company for all sales. 93 gement of rma in use ant. The tries. The nes around as in the ,11 embruoc is that of a IC8 as will » ith two or isiness, five i accounts; 3 footings of )r each part Inventorie s will bo seen t done with 38 of the two lower pencil two lines in receive the rchandise or lelf and other other parties ion when the ted for their !r being post- sen received, II. ids or other he consignor, pnaent. The the time of Merchandise In closing a Merchandise Company, deduct total charges from total sales. This leaves net proceeds in favor of all parties, each one having shared his part of the charges incurred. Now, having in your possession the proceeds, each interested party should bo credited with his share of them. In closing a Merchandise Company, it is made I>r. to ComuiisHion, to all charges which have not been posted, to the shippsr or shippers for their net proceeds, and to Loss and Gain fur your gain ; if a losing operation. Loss and Gain is made J)r. to Merchandise Company for your loss. Should the goods at the time of closing, be but partially sold, then Merchandise Company should bo Cr. in the Ledger " By Balance Invcntorj," only for your share of the Merchandise remaining on hand, the remainder beluDgiug to the shipper or shippers. Shipment C'^mpanies and Merchandise Companies represent the temporary co-pnrtner- ships existing between the consignor and consignee, having reference to tlie sale of particu- lar consignments ftf Merchandise. These co-partnerships differ from general co-partnerships only in their duratio i, and the manner of their sales. The consignee acts as a commission merchant, and in that capacity receives and disposes of the pro|>erty as he would of a simple consignment ; the only difference being that he is interested in the gains and losses. A second method of considering those transactions is to recognize the principle that the holder of the property is responsible for it. Thus, when you receive from Pilceathly & Kelso an invoice to be sold on joint account, you debit Merchandise Company with the invoice and expenses, and credit the consignors with the cost of the invoice, thus making yourself responsible for the property as though it were ail your own. The consignor's entry (recognizing the same principle) will be to debit you for the entire cost nf the Merchandise. Where there are more than two parties interested, if the accounts are taken by this method, the consignee should debit the Merchandise Company with its entire cost — and credit the consignor with their (the consignee's u-id consignor'.s] joint share, and any other party or parties with his or their share. The consignor's entry in such a case would be to debit the consignee with their joint share, and each of the other parties with his or their share. The otlu^r parties would, if making an entry to correspond, debit the consignee and credit the consignor each for his own share. The foregoing illustrations, it is hoped, will be sufficient to fasten tlic principles of these accounts upon the mind of the learner. The only difference in the two methods is a simple matter of time. By the first method the consignee is considered as responsible for the property w/ien he has disposed of it, and by the second luhen he received it. The final result is the sane in either case ; though so far as right and responsibility are concerned, the first method is the correct and philosophical one — the principle rt!Ci>gnized being that the owner of the property is responsible. We submit these separate methods because we consider that the more the learner permits himself to dwell upon these principles, and the better he comprehends them in all their bearings, the more thorough and available will be^is knowledge. The Companies in their current condition arc neither real nor representative. For this reason it ia deemed best to close them by a journal entry, when the property they represent is disposed of. The exercises on the following pages will show the application of the foregoing prin- ciples. 94 EXBRCISBa ON JOURNALIZING, SHIPMENT COS. AND HEROHANDISB COS. You should lay a sheet of paper over the followicg solutions, and not refer to them while you are writing out the Journal Entries. TraniaetioHi. Journaliud. 1— Jones Bhipi Brown, to be lold on Joint aoct and risk, Mdse. ralued at {1300. And pays insurance on lame $40. 2— Brown on receipt of the goods pays freight and otiier charges amounting to $70.60. 3— Brown sells the goods for 91450. Recelres in payment a Cheque for $600, Cash $500 and a Note for the balance. 4— Brown renders an account of sales, his charges are as follows : Drarage, $4.50 ; Storage, #5 00; Oooperase, $6.50 ; Commission, 3 per cent The following forms explain the manner of clos- ing the Mdse. Co. Total Sales $1460 Charges already posted, $70.60 '" not " Commission, 16.00 43,50 Total Net proceeds, Brawn's one half. Cost of " " 130 1320 660.00 620.00 Brown's gain, 40.OO 5 — Jones' entry on receipt of aoore account of|5' sales. 6— Brown's entry on remitting am't. to balance Jones' acct. per Cheque. 7— Jones' entry on receipt of abore remittance. 8— Reoeired from Smith, for sale on joint acct. goods valued at $840. Paid freight on same $100 ; wharfage, storage, drayage, etc., $60. 9- 1-Shipment Co. " A " Dr. $630 Brown " 630 To Ifdse. $1200.00 "Cash 40.00 3-lIdsc- Co. " A " Dr. $696.60 To Joum ««m.oo " Cash 70.50 3 -Cash Dr. $1000 Bills Receivable " 450 To Mdse. Co. "A" •1450 l-Mdse. Co. "A " Dr . $769.60 To Charges 6 16.00 " Com. 43.50 " Jones 660.00 To Loss and Qain 40.0J In closioff a Mdae. Co., and makiug the acct. sales entrr first find what all the sales amount to, then total charges (not including cost) and by deducting the total cnarges from the total sales you obtain the whole net proceeds. Tbs individual net proceeds are found by dividing the total net proceeds by the number of parties interested. Your gain or loss is found by taking the difference between vour pro- ceeds and the amount you credited the shipper with when you received the goods. —Brown Dr. 6660, ToShipm't Co. " A" •660.00' 6— Jones Dr. 61280, To Bank $128000 7— Cash Dr. $1280. To Brown $1280.00 8— Mdse. Co. Dr. $580, To Smith 1420.00 « Cash 160.00 -Having sold the goods for $850, 1 render an acct. of sales. Charges already posted, $160. After charges for drayage, etc., $10. Commis- sion and gi^arantee, 5 per cent. 10— Suppose the above goods sold for $1 200 and I remit the amount due Smith with the acct. of sales. Mdse. Oo. Dr. $270, Loss k Qain Dr. $101.25, To Smith " Commission " Charges 10- Smith Dr. $420, Mdse. Co- Dr. $620, To Cash " Commission " Charges " Loss k Qain 11— Loss k Gain Dr. $500, Smith " 80, To Mdse. Co. 12— Loss k Gain Dr. $425, Smith " 5, „. . , „ . To Mdse. Oo. 13— Shipped West, to be sold on joint account of 13— Ship't Co. Dr. $410, East, consignee and myself each 1-3 ; goods West valued at $1200. Paid Insurance on same Bast $30. 11— Suppose the above goods were all destroyed by fire after coming into my possessiob. 12— Suppose the goods per No. 8 were partially de- stroyed and the balance sold for $150. 14— West returns the whole of the above goods Charges paid by him, 960. 14— Mdse. Dr, $1200, 410, 410. To Mdse. '< Cash ro west ' East Ship't Oo. $318.7S 42.50' 10.00 9905.00 60.00 10.00 65.00 $580.00 $430.00 $1200.00 30.00 $420.00 400.00 380.00 05 08. r to them fl200.00 40.00 ««70.00 " 70.50 tl450 • 18.00 43.50 660.00 40.0J lie aect. mIm int to, th«a jr deducting )u obtain tbe aet proceeds ceeds by the ,!n or loss is in TOur pro- sbipper with K" weo.oo- $1280 00 fl280.00 1420.00 160.00 fSlS.TS 42.50 10.00 |905, .00 60,00 10.00 65.00 $580.00 $430.00 IS— Suppoee thut, in example No. 4, Brown has. only sold } the goods for 9700, at the time of rendering an account of tales, and that the charges and oommission are the same as* in former case. It-ChMgae ported tr.SO Unporttd is.OO «. CommlMioii >1.M TotelSelM $190.<» Total OhMgM. 107.M 107.M Totel Net rnxfAt. in.to Brown'i Proeeedi... Jonee' " Brown') ) InTolce, Pro. and larentorr. M6. J6 J Untold Qoodi... 620.00 594.39 300.00 #»M.M KetLoei • 38.75 Ila>- "~ Ttr jina.so I Mid Gain Dt... , $40. 20- Sold W. Manning, for Cheque on Merchants' Bank, 10 Military Coats at $11 ; 10 pairs Pants at $6. Sold Robert Carey, on account, 5 dozen Byron Collars at $2 per dozen ; 4 dozen Cravats at $3 per dozen. Received from James Gcodwin, Cheque on Montreal Bank for $155. 21— Sold H. Simmons, rn acct., 40 yards Blue Broadcloth at $1.80; 10 yards Black Beaver at $3.75. Received Cash for R. Manning's Draft of the 8th inst. Sold W. West for his Draft at 10 days on R. Bass, 50 yards French Cassimere at $3. Bought of W. McKay, on acct., Mdse., as per bill, amounting to $95. N'oTK. The names of Ledger accouats for this set auU the uuml>er of lines to be left for each will be found on page 09. 98 23— Sold Robert Carey, on tect., 10 Summer CoaU at $3.60 ; 40 yards Red Flannel at 66e. 34— Oare W. McKay our Draft at 10 days' sight, on James Goodwin, for $100. Sold H. Simmons, on acot., 10 yards Broadcloth at $3.26 ; 6 dosen French Toke Shirts, $11 per dosan. Bought for Casli Hdse., as per bill, amounting to $300. Sold James Qoodwin, on aect, 10 dosen Undershirts at $7 per dozen ; 8 dozen pairs Knit Drawers at $8 per dozen. 38— Accepted W. McKay's Sight Draft on us, favor W. Barnes, for $600. Reeeired from Robert Carey Sight Draft on James Goodwin for $136. 36— Sold H. Simmons, on acct., 1 piece French Cassimere, 60 yards, at $1.36. Had H. Jackson's Note of Nov. 33rd, 1884, discounted at Merchants' Bank. Face of Note, $800 ; interest, less discount) at 7 per cent., for unexpired time, 3 months, $18.81. Cash received $818.81.* 28— Sold James Goodwin 15 complete Uniforms at $14 ; received in payment Sight Draft on Montreal Bank, $60 ; balance to remain on acct. 29— Gave W. McKay our Sight Draft on H. Simmons for $76. Bought for Gash, Mdse., as per bill, amounting to $400, Received Cash in full for S. Fowler's Note, January 36th. Paid Cash for Gas Bill, $20; Wood, $15 ; Rent, $50. 30 -Received Cash for D. Roblin's Draft of January 20tb, less discount for unexpired time at 7 p^t cent. Paid Shop Hands Cash in fbll for services to date, $120. At thi$ datt you will pott the booki and Itakt of fa Combined Slatevunt without balancing or closing any qf the aeeountt. The inventoriet are the tame at thou (/ Set VIII. APRn. IBT- Bought of J. R. Marvin, on acct.. Goods as per invoice, $700. Bought of James k Co., on our Note at 3 months, with interest at 9 per cent., Mdse., as per invoice, $2600. 3— Sold Robert Carey, on acct., 2 pieces Scotch Tweed, 36 yds. each, at $1.60 ; 4 pieces Cassimere, 30 yards each, at $2. ■4— Bought for Cash 10 pieces Factory Cottoa, 60 yards each, at 10c. Sold C. A. Langford, for hi* Note at 2 months, with interest at 10 per cent., 2 cases Prints, 1500 yards, at 15c. ; 3 cases Irish Linen, 1280 yards, at 2&c. ; 1 case Scotch Tweed, 450 yards, at $1.50 ; 1 case Broadcloth, 175 yds. at $4. Cath Salet th%t day, $134.75. €— Shipped per Steamer Alexandria, and consigned to B. Way, Picton, to be sold on our account, 8 pieces Broadcloth, 20 yards each, at $4. Paid freight on same, $6.50. Cath Saltt, $136.20. 8— Sold Real Estarto for $1250 ; received in payment Draft at 16 days on Thomas Davis for $960 ; casli for balance, $400. 9— Gave W. McKay Draft at 30 days on James Goodwin for $287.50. Cath Salet, $195. 10— Received from Robert Carey, Cash on account, $100. Sold A. Diunond, for Cheque, 4 yds. Blacli Broadcloth at $6 ; 3 yds. Scotch Tweed at $2 ; I Vest Pattern, $5. Cath Salet thii day, $230.15. 12— Bought of Henry k Co. 20 pieces Red Flannel, 40 yds. each, at 30c. ; 10 pieces Wincey, 30 yds. each, at 26c. ; gave in payment Sight Draft on H.Simmons for $269.60 ; cash for Balance. Cath Salei, $200. 14 — F. Lane withdrew on private account $160. Paid Gas Bill, $14.60; Taxes, $46,70. Cath Salei, $170. 16— Received from B. Way, Picton, Acct. of Sales of Mdse. shipped him 6th inst., the net proceeds remitted per Cheque amounting to $760.75. 17— Sold S. Edsall, on his Note at three months, 4 pes. Suiiimer Tweed, 36 yards each, at $1.50. Cath Salet, $180.. 18 — Had S. Edsail's Note discounted at Montreal Bank. Discount off at 7 per cent. $— Oaah received $— — . Paid cash for a bill of Mdse. bought at auction, $76.20. 20— Paid Clerk's salary, $140. For Sundry Expenses, $18.50. 21— Bought for Cash, from T. J. Claxton k Co., Mdse,, as per invoice, $1200. Paid for Cartage, $1.50; sundry Expenses, $9. Cath Salet, $246.50. 22— Bought of J. G. Mackenzie k Co., Mdse., as per invoice, $800. Gave in payment our Acceptance at 5 days, $560 ; cash for balance, $250. Cath Salet, $725. *It ii the cnrtom of Bank*, when a Note bearing tntereit t> diacounted, tocompnta the intereH for the fnll time on the face of the Note, anil add it to the principal, then diaconut the amonnt. In thii caae, Jackwn'i Hole bem intereit at 7 per cent, for Riz months and 8 dayii, and will amount, when paid, to 9838.47. ThedlKonnt on thii amount for the 3 months the Note has to run beton It becomeb due, at ' per cent., is 99.66, and this deducted from 9828.47 leaves 9818.81, Um net proceeds received from the Bank. on Montreal 99 )3-Boaght of J. MoKajr, for 0Mb, MdM., flfiO. J. S. Miller withdrew on account, |300. Caih Satu thii day, f4T6.50. 18— Paid Oaah for oar Draft of 22nd init., faror of J. 0. McKeniie k Co., | . Ca»h Salti, $695.40. SO— Boaght for Oaib, of T. Andenon, Hdie., $100. Paid for Iniurance, $U.7B. Cartage, $3.20. Cath SaUi, $480.2S. RESOURCES AND LIABILITIES NOT SHOWN ON THE LEDGER. UmovRCM.—Merehanditt rimatning unMold, $4300. Inttntt Rietivablt — Aeeriud to date en Lang- fori'. Note, ^J3.87. \j\kmurii,—Int*reitpayahlt— Accumulated on our Note favor Jonet ^ Co., $18.12. T^tal net gain, 12448.24. Tho following arc tho Ledger Headings for Set X, and the number of lines required for each account. J. S. ]UiUer,8\ F. Lane,d; Caih, 9; Merekandiee, 10; Bill* Receivable, 17; Bitlt Payable, 12; J. R. Marvin, 7 ; Retd Ettate, 8 ; Jnterett, 10 ; W. McKay, 10 ; Robert Carey, 12 ; Jatnei Goodwin, 10 ; Shipment to B. Way, 9; II. Simmoni, 10; Expenu, 12; Loti and Gain, 10; Balance, 12. SUNDRY debtors' ACCOUNT. An account with the above heading is frequently opened where there is a large number of small personal accounts, under the mistaken notion that labor will be saved by it. We have yet to see such an account usud alone, without an auxiliary ledger containing the separate accounts, in connection with it that did not make a great deal of confusion and much trouble. If you give an individual credit at all open a separate account for him. It is not necessary that these accounts should be in the General Ledger, they may be kept in a small easily handled ledger, which may be called the Petty Ledger. To learn the way to deal with numerous small personal accounts read " i3ook-kcepiug for Public Institutions " page 197. 100 o h 1 HI a s 1 1 s 53 5 1 • e-. c- I— t- s ^ M . _ c g.£ = CO oo o o MOD 4; o >5 JO > 2 c 3 o S o a o a"^ » C c '%. O O 09 .S»S5^ ^Ji! . . « C s s e3 O © B o 2 o c u s t: "S ac lO I- r- CI O © lO M o i« o o o 30 I o o o CO 101 o § a a o a 2 P 1* § CO ■o « S 1- ^. is IS s» S-. M r- • ■5 A| X 1- — ri M t S^ 1 i s S 5^ M 3' T tn C4 i c o o o X " r. © o ^ |C »* -r * -n h- ^: c 3 «.■: X C^l O 1- ff> » o ^ — o ri o c • • hm ^- ■^ — tfi ■M •fi M f^ ^ •Xj 1- X »- * — — <*' » 4* > : tt 1 < ( • • C ft/ ^ 5^: ^ 1 • ■ • * t* C .o~ _i ^C •M ^ i &=^ r s 'S ^ • 1 •c P4-= . .• 8 • • • •1 1 ■5 1.. 3^- M^ i "1 ■fi i »2 i ^J »3S ►? d ^ '.:': c aT U ■rr 4» If X rt. a u X ■-K ,^ i w 1 1 1. »- « «r is 1 ^ 1 ^ . X Ti. ■5-5 ! H^? ^ 1 c5 U A '- 3 U U d v. : i-^^ , t. 1.; C 2 "5 ll^ ft m 7. ^ : : : 1 •'^ 1 v ©5^ 13 r 1" • • • •* 6 pq u t-» m " o __ •■^ r^ rs I-- or. 1- - - «« o 1* r-. » SI -r o f 1 X « ►- o ^ t- ^ r- — O r- ,_l W ^ Ci 90 rl IM ' i' •" ^^ o O t- 1 O S4 O ,_ o u': X f2 1 o go § o e ^^ e^ 102 REMARKS ON BET XI. This Set is intended to illuf>trate » very practical rortn nf keeping accountH ; iW Rome of the moot iniportitnt changcH that take place in a )inrtiuniliip lufincPH. For this purpose it is continued four months, each month riprtHeutin^'. ho far an the closing of the books and the agreements of the pattners arc concerned, a year's buftincPH. At the end of the first ytar (represented by January), the existing partners, '• Student " and " S. G. Beatty," admit a new partner, who is'^ to share in the j.'ain*i and losses according to capital invested. It is a settled principle in Accounts, that whenever any change in the businf>» oecurs, the existing Resources and Liabilities of the concern nhould be made apparent; and, con8er{ueutly, the proprietor's^^accounts Hhould represeut their iuvcfitmcnt at tlie tinicof the change. It is evident that if the accounts are all left in their current condition at the time of admitting a partner, he will unjustly become a joint partner in the gains vliich accrued before he had anything to do with the business. Therefore, before admitting a new partner it becomes necessary^to credit the original partners with their respective gaiui> during business. With this view we close the books at the end of January, credit each partner with his net gain, and bring down the balances as instructed on page 75. At tlie end of the second year (represented by February), another partner is admitted, and the business changed from that of a lietail Grocery to a Wholesale Grocery and Ship- ping business. During the third year One of the partners disposes of his interest in the busincfs to an outside party, who is allowed to aHrtuuie the position of the retiring partner. Through a disastrous fire at the end of the fourth year, the store and goods are entirely consumed ; nothing being saved but the books and valuable papers. The account ant is required to effect a settlement with the Insurance Company, collect all Resource? and pay off all Liabilities, as the partncrt-hip is to be distolved and the businci's diKOD- tinued. BOOKS USED. The books necessary for this Set are Journal Day Book, Invoice Book, Ca^h Book, Bill Book and Ledger, and as there will be a large number of accounts ycu viil keep an index for the Ledger. A decided improvement in the Journal Day Book of this Set relates to the keeping of | a column exclusively for credit sales of Mcrchandi.<:e, whereby the Journal and Sales Bcok are combined, and an opportunity afforded to post all credit sales of Merchandise in total, The invoice Book and Cash Book are used as books of original entry. The transactions of the Invoice Book are journalized from that book at the end of the month, and the, trans- mctions of the Cash Book are posted directly to the Ledger. See /ornu of Journal Day Book, Invoice Book, and^ Ca$h Bcok immediattJy after I the tramactioni for January, Hid SET XI. SPACE REQUIRRD FOR LF.DnER At'COUNTH. Partiurs ^ page each, MirchundUe, BilU Rfceionlde, Hill* Pni/nltlr, Inlerritt, A. Orrrrlf, S. Edt'ill, A. Forin, Merchanti' Bunk, a whole jHigt ench. i'nih, Wm. Ihftrri/, K. D. Anglin, Jo». Allen, W. Ponton, John Luinl, T. li. Demi, Exfteniir, Snlitry, Rent, Rimmer, Ounn it; Co., Charges, Cnmmi»»inn , J . W. Divkie, /'. V. Dorluml, W, B. Robinson, one-half puge each, Lou (tnd Gain tiro jut^iH, and all ulher ao- cmtnti one-third of a pagt each. RETAIL GROCERY BUSlNEoS. (TWO PARTNERS^ Gains and Losses to he divided in prt'imrtion to C ' nitat invested. K ' JiaiiAltoH, January Itt, IM8*>> and 8. O. Boatty this day form a co-partnership for the purpo'n of condiictinjif the Retail Grocery Bu«ne8s, renting from Wm. Lottridge, Store No. 62 ^facnab street "t f (WKI jx-r year. Student invests Cash, $3800 ; Merchandise per inventory, f 2">00 ; George Stiuson's .Not , .;i, throe months, from October 10th, 1884, with interest at C per cent, per aniium, JoOO. Intereot acoumulate«— Note favor W. Brown, $500, at 6 months, from Ckjtobor 12th, 1 884, T. Durham on account, $27'>. S. G. Beattt invests Cash, $3500, Note against W. Flemmiug, $1,750 at C months, from October Ist, 1884. 2— Engaged A. Overell, Alex. Forin, 8. Edsall and .Tohu Lnird as clerks, at ^:jflO each per year. Sold Wm. Drewry, on account, 3 lbs. Japan Tea at 70c., 10 lbs. Soft Yellow Sugar nt Kc, I lb. Cloves, COo. Sold R. D. Anglin, on account, 10 lbs. Java Coffee at 40c., 2 Iwxos Layer Raisins at $3.25, 2 lbs. Pepper at 30c. Cuth Sale*, S'Jii. —Bought of Rimmer, Gunn & Co., Moutreal, on 4 months* credit, 5 bags Java Coffee, M2, 1.S5, 136, 117, 150 lbs. ; tare, 15 lbs. each, at 33c. Paid freight on above. $4.25. Sold Jos. Allen, on account, 100 lbs. Dry Cod, $6, 12 lb.s. crushed ' A " Sugar, at lOJc. DcposiU;(l in Mer- chants' Bank, $1500. Cash Sale*, $110. 5— Bought of James Gunner St Co., Montreal, 10 bble. Canso Herrings at $3.50, 5 bbls. Round do at $3, 4 barrels White Fish at $5. Paid Freight, $2.50. Paid E. Harrison for Set of Books for use of store, $10.50. Sold 8. Edsall, on account. 5 gallons Standard Syrup at 50c.. 10 lbs Sugar at lOc. Sold 0. Vandervoort, on account, 2 bbls. Golden Syrup, 3(> gallons each, at iSc, 2 bbls. Crushed Sugar at $25, 4 boxes Valentia Raisins at $3.25. Sold W. Ponton, on account, 6 lbs. Ground Ginger at 30o., 1 lb. Pepper, 25c., 12 lbs. Prunes at 20c. Received from A. Hamilton, on account, his Note at one month for $100. Ca»h Salen, $145. 7— Bought of J. Carruthers & Co., Kingston, at 30 days, 20 bbls. No 2 Sugar, 220 lbs. gross : tar«, 15 lbs. each, at 9jc. Paid freight, $4.60. Sold R. D. Anglin, 1 bbl. Sugar, 220 lbs. grora ; tare, 20 lbs., at 12c. Sold A. Overell, 2 lbs. Tea at 96c. Sold Wm. Drewry, 20 lbs. Dried Apples at 16o., 1 bbl. White Fish, $7. Sold Alex. Forin, 1 lb. Tea, 'JOc., 1 lb. Candies, 50c. Guh Sales, $186. * Btndent'g name. Note— Coniidoi all «ale|^ellected on occonnt, onltH lettleiuent be mentioned in the entry. 101 ^—Bought of S. E. Sbiblcy, on our Xote at GO daj-s, with interest at 7 per cent, per annum, 100 bush. Apples at Sl-'irt, 40 bush. Chili Potatoes at 50c., 50 bbls. Extra Flour at^iO.lO, 10bbl3. MessPoik ttt$15.50. Accepted J. Carnithers & to.'s Driilt at 30 days, from tlie 7th inst., for amountofin- vo'.e* and i per cent, cxclmngo. 8o!ii Jo.'it'pli Allen, 2 bushels Apples at If 1. 50, •> lbs. Rice at ■..'ic , raid for Repairing Store, $25. Remitted Rimmer, Gunn & Co., Cash for their invoice of the 3iil inst., less discount at 2^ per cent. Discount §— ; Cash Remitted S— ■ Received of A. Ilaniilton, on ivccount, !f20. i:old John Laird, on account, 25 lbs. fSaimon at Tic. 10 lbs. Raisins at 'J".i'. Sold T. H. Dean, on account, 14 lbs. Sugar at 12c., 5 lbs. Dried Apples at 20c. Deposited in Mtr- chants- Bank, $1000. Caiih Sales, S250. . 5- Bought of Pitccathley k Kelso, Belleville, 20 bbls. Mackerel at $5, (5 bbls. Trout at S8. Paid Ca.-h for Freight, §12.50. Received oft). Vaudervoort, bis Note at 90 days, bearing interest at 7 per cent., for goods sold him the 5th inst. Bought ol Sinclair, Jhck & Co., Montreal, 5 half chest.s " L'ucolored Japan "' Ten, 75, 7\i, 78, 77, 79 lbs. gross ; tare 1 1 lbs. each, at 56c., 4 half chests Voung Hyson, 78, 80, 75, 73 lbs., tare 11)3. each, at 74c.; 5 bo.xes Pr. of W. Tobacco, 120, 125, i:;o, 132, 130 lbs., tare 10 lbs. each, ai 30c. Paid Freight in Cash. $13. CO. Sold Joseph Allen. 1 chest Tea, 130 lbs., at 90c. Sidd VVm. Drewry, 55 Ib.s. Pr. of W. Tobacco at 45c. Sold S. Edsiill, 3 lbs. Gunpowder Tea at 90c., 3 doiiun Xutmegs at 15c., 1 bush. Onions at §1.75. Cash Salcf, $238. iO— Had 0. Vandervoort'3 Note discounted at Merchants' Bank at 8 per cent, per annum. Discount, §— ; Cash received, $ — . Paid Cash for Sundry items of E.\pense, $22.40. Sold John Laiid, 12 lbs. Prunes at 2()c., 5 lbs. Raisins at 25c. Sold T. B. Dean, 1 bush. Apples, $1.50, 2 lbs. Raisius at :^5c. Sold Ale.K. Forin, 2 lbs. .Macaroni at 20c., 5 Jars CoftVe at 80c. Cunh Sale/, S174. 11— Sii.'. PitccathUy & Kelso our Note at 3 mouths, with iniercsc at 8 per cent., for their invoice of tlw yth inst. Paid Cash for Stationery and Stamps, ,S4.80. Sold \V. Ponton, 15 gallons Syrup nt 40c., 1 lb. Tobacco, 50c. Sold A. Overcll, 4 lbs. Candy at 50c., 1 lb. S. S. Almonds, 55c. Rf- ii'ivrd uf John Smith, in full of account, Cash, $50, and his Note, at 30 days, with interest, at 8 (jit cent, for balance, S — '. Cash Sales, S270. 12 — Bought of A. Urquhart & Co,, Montreal, on 4 months, 14 casks Bordeaux Vinegar, 50 gals. each. «t 3,5c , 5 cases Elenie Figs, 4,30,32; 420,27; 298,31 ; 400,30; 389,32 lbs. f at lOc, lObagsSS. Alraomls, 130,5 each, at 21c., HiObu.ves l^tyer Raisins at $2 25, 5 bbls. Zantc Currants, 250,31; 293|:T; 209,29; 250,27; 298,3 libs, at 5* cents. Paid freight in Cash $22.40. Sold T. B. Dean. 4 lbs. Tobacco at 50c , 2 dozen Nutmegs at 3iic. Paid A. Overell, Cash, $5, John Laird. §3 50, S. Edsnii, . 14.50, Ale.x. Forin, $3. Cash Salen, $230. 14— Received Cash in full for George Siiusou's Note of October lOih, with interest. Sold \Vm. Vickors, at 30 days, 10 bo.xes Layer Raisins at S2.50, 1 bbl. Zante ('urrant=, 203,27 at Ok, 1 bag S. S. Almonds, 130,5 at 24c., 1 bo.x Pr. of W. Tobacco, 120,15, at 35c. Sold \V. Ponton, .V case Eleme Figs, 210 lbs., at 18c, 1 bbl. Zante Currants, 233 lbs., at OAc. Sold A. Over- ell, 20 lbs Prunes at 20c. Cash Sales, S'HO. ■ 15 — Received from \V. Vickors, his .Vole at .! i days from the Ulli inst,, for amount of goods sold him. Bought for Cash, 10 Reams of \\ rapping Paiier at 95c. Sold T. B. Dean, 4 lbs. Ccll'ie at 30c. Received of W. Ponton, on account, Casli, $20, U'm. Drewry, $15, R. D. Anglin, $10. Paid S. Ivkall, ?9. Pait'. sundry expenses, $4.40. Had W. Flennnings Xote of October 1st Ji.-cuuuted at Miuchants' Bank, at 7 per cent, per annum. Cash S:iUs, .'^275. • 16— Bought of J. H. R. Molson - Bros, .Montreal, on 3 months, 10 bbls. Crushed "A" Sugar, 21'', 19; 238,20; 240,21; 232,19; 208,17; 202,17; 238,18; 258,17; 29.3,22; 240,10 at 12ilc.; 5 bbls. Golden Syrup, 43, 44, 45, 40, 49 gals., at 01c. Paid freight on above, $5.00. Sold W. Ponton, 1 bbl. Syrup, 44 gals., at 7iic. Sold S. Thomp.son, 15 guls. Vinegar at 40c. Discounted our Note favor \V. Brown, at 7 per cent, for unexpired time. Paid T. Durham, on accouut, $45. Cash Sales, $208.40. 17— Sold R. D. Au.i^lin, 1 bbl. White Fish, S12, 2 lbs. Tobacco at 50c. Cash Sates, $100. 18— Deposited in Merchants' Bank, $850. Paid Cash for Tax Bill, $1.5, Gas, .$25, Coal, $20. Sold J ihn Laird, 20 lbs. Sugur at 13e. Received from Jos. Allen, on acct., §50. Cash Sales, .§245. * Ah soon as an entry of lliis kliul Is post^'d, Uie aocount sliould be ruled u|) in tlio Loilger, In order tliat it may not l)0 brought In Iho Trial nidnuco at the tinu) oC ckishiy, or use loiters to sh^jw bu'i: ce us exiilaiued uiiiU'r the head "'I'o fUow "ettloiuonlH in Ledger aerts. wiih .ul ruling." tTlie liirgo amounts are the number ot lb.''. gMBs, and tlio gniall amounts tc- ".^rv^Ut, separated from them by ♦ DOinnuw, are the Iba. tare allowed, / 105 19— Discounted Sinclair, Jack & Go's invoice of the 9th inst. st 3j per cent., and remitted amount per Draft on Bunk of Montreal, for which we paid Cash. Received from A. Hamilton Cusli in full of account. Cunh Sales, $210.40. 21— Sold \\m. Drewry, 40 lbs. Sugar-cured Ham at 15c., 20 lbs. Mess Pork at 12c. Deposited in Mer- chants' Bunk, $400. Cash Sales, $260. 22-Paid John Laird, Cash, $4.50 ; S. Edsall, $2.40 ; Alex. Forin, $3.C0; A. Overell, f 2.00. CikI, Sales, $174. CO. 23— Received from Wra. Drewrf, on acct., $10. Sold R. D. Anglin, 1 bbl. Sugar, 21G lbs., nt lajc. Sold Joseph Allen, 1 bbl. Mess Pork, $10. Sold T. B. Dean, 10 bush Apples at $1.40. Va'li Sales,. $1"2. 24— Deposited in Merchants' Bank, $38C. Accepted T. D'lrham's" Draft on us at 30 days, far or J. W. Campion, for balance of his acct. Sold M. Litigliani for Note 00 days, 1 cask Vinegitr. 40 gals., at 40c., 10 bush. Apples at $1.45, 50 lbs. Sugar at He. Cash Sales, $208. 2.1— Paid for Repairinj Store, $20 per Cheque. L<>nt G. J. Sherry, $120, for which he gnve !:ij Note at 30 days, with interest. Sold Wra. Drewry, 5 lbs. Japan Tea nt 95c. Cash Stlen, $104. 20— Student drew on i>rivate acct., $250. Deposited in Mei;ciiants' Bank, $430. Sold R. D. Anglin, 30- Ibs. Sugar-cured Hum at 15c. Cash Sales, $107. 28— S. G. Beatty drew on private account $167, 1 lb. Tea, 75c., 3 bush. Apples at $1.25. Cash Siles^, $146. 29— Bought of Ross & Davies, for Cash, 10 bblg. Herrings at $o 50. Sold W. Ponton, 25 lbs. Dried Co4 at 12c. Cash Sales, $100. 30— Received of Joseph Allen, on acct., $75. Paid A. Overell, $4. Cash 5a/«», $176. 31— Paid Alex. Forin, $S ; S. Edsall, $2. Cash Sales, $200. Open a Salary Account, and pass the amount of clerk's salary, for the month, to their credit. Debit Rent Account with one month's rent of store. As you are now to admit a new partner it i.s necessary to ascertain the condition of the business, which you may suppose has been running a year, balance the .iccounts, and bring down the balances, deal with Loss and Gain, and make out the Balance Sheet. Allow a profit of 25 per cent, on sales, in order to ascertain the inventory of mer- chandise.* Total Net Gain, $779.24. JOUENAL DAY BOOK. The form of Journal Day Book used in this Set is similar to that of Set IX., except that the outside column is used exclusively for credit sales of Merchandise. Thi.s form is very practical and extensively used in large retail hou.ses. It combines the Journal and Sales Book in one, and affords an opportunity of posting the sales of Merchaiidi.xe iu monthly totals. The column containing credit sales is forwarded to the end of the month and the Cash Sales, from the Cash Book, added to this amount, gives the total sales, as illustrated in the following form. * In order to aiccrtain tUo value of un»old Meroliaudlee, divide the credit side of Morchnndii^e Account l>y SI 2B, the amount realized for each dollar of the cost, and tlie quotient will be tlio cost price of all BIcrclmndi

, as per Articles ut' Agreement, renting from William LoUridge, Store >o. 62MaoNab St-, at $G00 per year. Sundries Dr- To Student For ettects invested. Cash Amount invested as per C-B. Merchandise " " " Inventory Bills Rec. G. Stinson's Note as per B. B ■ Interest Accrued on above Note to date A. Hamilton owes on account John Smith " " Student Dr. To Sundries For liabilities HHsuuied by Krm. Bills Pay., Note favor W. Brown for T. Durham, bal. of acct. assumed Sundries Dr. To S. G. Beatiy For eflFects invested. Cash As per C. B Bills Receivable, V. . Fleming's Note as per B.B. Engaged A. Overell, A. Foriu, S. Edsall & John Laird as clerks, at $300 each per year. VVm. Drewry Dr. to Mdse. For 3 lbs. Japan Tea at ~0c " 10 " Soft Yellow Sugar at 9c. " 1 " Cloves R. D. Anglin, Dr. to Mdse. For 10 lbs. Java Cofl'ee at 40c " 2 bxs. Layer liuisins at $3.25., " 2 lbs. Pepper at 30c 3 Joseph Allen, Dr. to .Mdae. For 100 lbs. Dry Cod at Gc " 12 '• Crushed " A " Sugar at lOjc , S. Edsall, Dr. to Mdse. For 5 gals. Standard Syrup at 50c.. " 10 lbs. Sugar at 10c 5 0. Vandervoort, Dr. to Mclse. For 2 bbls. Golden Syrup, 72 gals., at 45c., " 2 " Crushed Sugar at 5b25 " 4 boxes Vul. Raisius at i3.25 W. Ponton Dr. to Mdse. For 5 lbs. Ground Ginger at 30c. " lib. '■ Pop>ur •' 12 lbs. Prunes at 20c Amounts forward $3800 2500 500 6 260 100 775 5500 1750 11 95 $15306 00 00 00 «3 00 00 00 60 10 26 50 40 15 84 $7156 500 275 7250 $15181 83 83 Meri-haniliM>. 32 50 13 $125 10 90 60 00 50 60 00 26 50 00 40 00 00 50 25 40 01 107 Hamilton, January 5lh, I ?8D. 115 123 114 140 142 141 116 146 349 114 Brought forward Bills Receivable Dr. To A. Hamilton Received his Xote as per B.B. (,No.— )on acct. R. D. Anglin Dr. To Mdse. For 1 bbl. Sugar, 200 lbs. net, at IJc Merchandise, Dr. To .Sundries. Invoices from the Invoice Book. Folio 108. To Rimmer, Cuun & Co., invoice of Jan. 3. " James Gunner & Co., '' •' 5. " J. Carruthers & Co., " " 7. " Bills Payable, " "8. " i'itceathly & KeUo, " " 9. Sinclair, Jack & Co., " " " •Merchandise Cr. by Sundries. • Red Ink. $15306 84 $15181 83 Morchand im 125 01 100 00 24 1801 00 19 100 00 24 00 199 65 70 00 383 50 605 1)0 148 00 339 .149 17232 04 01 03 149 01 $17232 03 The foregoing form is considered sufficient to illustrate the mode of entering transao- tions in this Journal. It will be observed that Cash transactions are not entered here, but -carried into the Cash Book, and purchases of Merchandise are entered first in the Invoice Book and Journalized at the end of the month. INVOICE BOOK. This is a book in which to copy all bills of goods purchased, in order to have a book record of the details of such transactions, in case the original invoice should ba lost or des- troyed. This is practised by some merchants, but it is as convenient, and saves a great amount of writing, to paste the original invoices into a book made of soms description of pap.^r of a larger size than the invoice*. By means of an index to this book it will be found more convenient to refer to the original invoices than by seeking them from files. In 80111 J business houses, where the invoices received are long, they are filed and num- bered, an i only an abstract of them eut ored in this book, with the uumbor for reference. Ill w uit jver form the Invoice Book is kept, every entry aflfecting the debit side of Merchan- disi' account should originate here ; when this is done, it becomes a direct and perfect check upon the Dr. side of Mjrchaudise account in the Ledger. This book is journalized at the close of the month, under the heading •' Merchandise Dr. to Sundries," or you may post directly from it into the Ledger. In that cise rule dollar and cjnt columis on the right, fold .I'lh Invoice neatly up to the name of the seller, write the explanation underneath each, carry the amount into the column, unless bought for Cash, carry forward each column. The footing at the end of the month is the amount to make Merchandise Dr. for. After debiting Mdse. credit each Invoice to the individuals or Bills Payable, a.s the case may be, and put the Ledger folio on each Invoice in red ink. Merchandise purchased for Cash is entered in this book, but posted from the Cash Book. When a Cash purchase is entered, mark " C. B." in the folio column opposite the iiauie of the seller, in order that it may not bj journalized with the other transaction, and thereby posted twice. The two sets of columns for dollars and cents on the right are used for extensions and sums total of purchasea on time ; a third, or inside, column may be - .led for Cash pur- duLses. ^ Invoices of goods to be .sol(> on commission are not entered in this book ; they should either be kept in a separate book, or a memorandum of them made in the Day Book and the invoices filed away for reference. Merchants' who import goods from other countries, keep a Foreign Invoice Book, in which they enter all goods purchased in foreign countries, and a Domestic Invoice Book for copies of all invoices of Merchandise purchased from l^ersons in their own country. 108 Want of space prevents us from giving more than a few of the first purchases in the form of Invoice Book on the following page ; but those given are considered sufficiout tu show liow the entries should be made. Z^ When an invoice in a foreign currency is received you may deal with it in two ways. In the case of a Sterling Invoice, lor example^ you may count it at the present rate of exchange, debit Jllldse. account, and credit the firm from which you purchased ; and if, when you settle for it, exchange is higher than you estimated, charge Mdse. with the ilit- fereuce, or if it is lower credit it. The other way is to post the Invoice, leaving the fimircs blank until you have ascertained the actual co.st. INVOICE BOOK.— Set XI. Ilainilton, January \st, 1885. 9Iark>. Noe. D.B. V Mdse. invested by Student as per Inventory Book, .3 Rinimer, Gunn & Co., 5 bags Java Coffee, lbs. tare. 142—15 over 41,3—45 135—15 117—15 136—15 l.iO— IS 413—45 C8O~75=C05 at 33c. 4 months credit, or 2A per cent, off for Gush. Montreal. James Ounncr k Co., 10 bbls. Uanso Herrings at $3.50. 6 •' Round Herrings at $3.(J0 4 " White Fish at $5.00 4 months credit. 7 Montreal. J. Cnrruthers & Co., '20 bbls. Xo. 2 Sugar, 440n ibi. gross, 300 " tare. 30 days credit. Kingston. 2500 00 4100 " net, at 9Jc. 35 15 20 S. E. .Shible} , 100 bus. Winter Apples at $121- 40 "• Chili Potatoes " O.,'")') 50 bbU. Extra Flour " 6.10 10 " Mess Pork " 15.50 Note at CO days. 9 Belleville. Pitceatlily k Kelso, 20 bbls. Mackerel at $5 6 " Trout " 8 3 months credit. Belleville. Sinclair, Jack & Co., Montreal. 5 half-chests Uncolored Japan Tea, lbs. tare. 75—11 over 223— ,33 7i!— 11 77-11 78—11 79—11 229—33 385—55=330 lbs. at 56c. 4 half-chests Voun^ I2/Bon, « 78— 9 over 239—17 • 8C— 9 73— 9 75— 9 239—27 312— 3(i-«76 lbs, at 74c. 2 months credit. * Total purchases. Journal, page IVt. 125 20 305 155 100 48 199 I GJ 70 389 COS 148 50 oo 184 204 80 24 389 1801 •Red Ink. 109 199 I 05 70 I O'J CASH BOOK. (See form on next two paged.) The only distinction between the following; form of Cash Book and that of Set IX is the aJoption of a greater number of special columns. This form of Cash Hook will be found applicable to almost any kind of busines.s. The columns which we u.se for Merchandise, Intercut, Bills Rcceivuble, Exj)Liise and Freight, may be used for any other titles. Every business lias particular accounts from which its principle income is derived, and for which its chief expi-nditure is paid. Tliese accounts must always create a great number of entries, and any mode of posting those entries in accumulated amounts must materially diminish the amount of writing in tlie Ledger. The number of special columns used, and the titles adopted, depend uj'on the nature of the business. Tiie sjweial columns on the Dr. side should be headed with a< onunts for which Cash is frequently received, and the special columns on the (Jr. side with accounts for which Cash is frequently paid. It will be found practical and very convenient to use a column on each side for the Bank account, and put all bank transactions through the Cash Book as nhown below. The mode of entering transactions in this book and posting therefrom has already been explained on pages 86 and 87. After drawing the lines and posting the special columns, they may be entered in the extension to the " Sundries" column, witli red ink. Observe closely the style of ruling adopted for closing this book, in the following form, ajid adhere to it throughout your work, a.s neatness and uniformity in this matter add greatly to the appearance of books, and are of more importance in preserving accuracy and order than many persons imagine. 389 50 COS 148 0» 389 1801 04 \9\ METHOD OF KEEPING THE BANK ACCOUNT IN THE CASH BOOK. The Bank Account is frequently kept in the Caeb Book and not opened in the Ledger at all, and by this means a saving of time and labor is efl'ccted. You will require a special column on each sic'e, —the one on the Dr. side for Cheques or Notes, and Drafts charged to you in the Bank ; and the one on the Cr. side for Deposits, Proceeds of Discounts or Collections. When entering Cheques, Notes or Drafts charged to you in the Bank, don't write anything in the space where the names of accounts are usually piaced, as you have to make no posting to the Ledgi r, liiit in the explanation space write, for example. Cheque 89, or Note No. 87, and carry the amount into its own column : you will then make the regular Cash entry for Cash paid out. When entering Deposits, or Proceeds of discounts, don't write anything in the space where the names of the accounts are usually placed, but in the explanation space write Deposit, or Proceeds of N'ote No. 129, and carry the amount into its own column. For a deposit, you would of course make no other entry, as you are simply moving the money from your own office to the Bank for safe-keeping, but for a discount or collection you would make the regular Cash entry that woiild be umde if the Proceeds were 'jandcd over to you in Cash. ExAMPLE.s. — Suppose the following : you issue Cheque 89, for $150, tu John Sutherland in full of account ; the Bank has charged a Note for $153. You deposit $397 ; you discount a Note for $120, the Procreds $118.20 are kfl in Bank. Dr. Cash. Cr. Bank, i 1 1 liiinl;. 1 — Balance from last month, 9890, Nov 8 Bal.ince in B.-xnk fniii li\-t nio. Bv .1. SuthiTlnnil. In full of ac. $JfiO 00 Sl.iU 00 Nov 8 Check 89 «l.'>0 0(1 i( " BilliPay. Retiie(l.No. 87. ld.1 00 Note 87 isa oe II UeiwBit ;«t7 0( li ToBilURec. DU. ^'o. 129 120 II II Proo. of Note 129. By Discount On Note 129 118 2U 1 80 Balance in Bank. 412 21 Cash balance from lust month . 800 Balance on hand and in Bank. 2(1 708 $101(1 20' S715 20 $1010 »;i.5 (K» no CASH BOOK.- Dr. Cash. 1885. F, Jan. 1 D.B. (( (( D.B. €( 2 V ft 3 V (i 5 V tt 7 V i( 8 V « i< 98 (( ii V Bills R3C., Mdse, Discount, Mdse-, it Jos. All n, Mdse-, On R. G. & Co.'s invoice, On account, Sales from Petty C. B., tt ti ti it Had 0. V.'s Note discounted, This day's sales, P. C.B., Part Payment of account, This day's sales, P. C. B., « « i( G. S. '8 Note of Oct. 11,(B.R., No.— >; On above Note to date, This day's sales, P. C. B., On account, W. Fleming's Note discounted This day's sales, P.C.B., On our Note, favor W. Brown at 7 per cent This day's sales, P. C.B., it it tt ts On account, This day's sales. Mdse. Interest Cr. By Cash, BUls Rec-, « Total to Dr. Mdse. $96 110 145 186 250 238 174 276 236 249 275 268 196 245 2944 90 00 40 In'st 99 21 83 65 47 Bills Rec 95 500 1750 2345 40 00 00 40 Sundricsi, $.180000 5500 00 20 50 20 15 10 50 2944 21 2345 114776 00 00 40 4T 40 27 * BxtensioiM to SundrieB column. Red Ink. * Extensions tj I 20 50 00 00 20 15 10 00 50 ( 2941 40 21 3345 40 111 * "! SET XI. • Cash. Cr. 1*85 F. By Freight, On R. 0. & Cu.% Ii.v.>ico, " Mer. jBank, I)ei)(j>-ii((l, Exp'se. Ill'st. 1 lf::.llt. SuiidriM. 1 J«n.' i V 4 25 t> i ' tJ5 1500 b V " Freight, On J. G. a- Cn.V Invoice, 2 50 U 4 ' V " Expense, Sot of lJ(K)k< t'.r Ston, 10 50 7 V " Freight, On J. C. ix, Cu.'s Invoue, 4 60 " ■i V " EKPense, Ktimirinjr Wimluw olShop, 25 00 1 ' ai " B' D- & Co., In till! for Invoice 3i(l in.--l. 10!) 65 1. ' 1 ' ()5 " Afler- Bank, Dep-.^ittil, 1000 '• ; ^ V " Freight, O" !'• < \wr cLUt., " Expense, Sundn- item-- jjcr P. C. B., 26 •• 1 ' ' V • 22,40| '• '1 ' i " " Staticjiierv. ^1 : jKi-t. ^^unll)-,80c., 4 80 •• 1 i. i it ( I V ' 74 ' 73 " Freight, On Unnihiin tV t'u.V Invoice, " A- Overell, On acci>nnt of Siiliirv, " John Laird, , 22 40 5 3 50 it ( ' VO " S. Edsall, 450 *. i ' 75 « A. Forin, " " 3 " 1 3| V " Expense, Wrappinjr paper, 10 ream- ai 95e., " S- Edsall, On account, H 50 ' 70 9 00 *• ( ' i " Expense, Smulrv iiem-, P. C. 11., 4 40| <> 1 i ' -y " Discount, On Fleniini.'V Xdic at 7 percent.. 26 88 '• !1 ^ V " Freight, On J. H. U. M 1<> n Hruf.' Invoice " Billsray., Retire.! 13. P.. No.— 5 60 " ! • 5(i 500 00 *> ' 81 " T. Durham, On account. 45 00 '• I » tio ' V " Mer. Bank, I)epo.-ite.i, " Expense, Taxes, |lo ; Ga , 5^25 ; Coal, $20, 60 00 850 0» 61 Expense Dr To Cash- 136 60 ♦ 136 60 58 Interest " 27 n • 27 14 60 \ * . Freight " " (;,) 7o • 65 15 51 Total to Cr. of " 4348 84 • Balance in hand. 1*10427 43 ^14776 27 * Eitunaioas to Sundries, Jled luk. 112 SECOND MONTH'S P.USINESS— Set XT. Febni'trt 1st, \^K). ■ iKTwutyo ■ 15-Sold li. Af'rr We have this dny ndmitted J. W. Dickie as partner, who invests, according to Articles of Agr.i,\ $174. " 7—8. G. Beatty draws on private account, Cash, ?50; 3 lbs. Tea at 60c. ; 20 lbs. Sugar at 9\c. : bbls. Flour at ,'?0.25. FfecMved of R. D. Anglin, on account, .S25. Lent W. R. Biirl)er, irlVj Paid onr Note favor S. E. Shibley, less discount for unexpired time. Remitted A. Urqnliart & Co , a Draft on Bank of .Montreal for amount of their Invoice of January 13th, less 21 \w\ cent, discount ; Paid Cash for Draft and .} per cent. Exchange. Cash Sales, $146. 8— Bought of Dobson s Sons, Port Hope, on 60 days, 200 dozen Corn Brooms at $3.25, 50' dozen ,ii I $2.9.'>. and 20 dozen at .?4.00; paid Freiglit, ,■§24.50. Sold Jo.seph Allan, 10 dozen JBrooBj at $3.50 ; 2 chests Y. H. Tea, 67,^^i ; 74,7^ lbs., at 73c. Paid for coal, $26. Paid \V. Lottridgf | fur 2 months' rent of store per Check. Dejiosited in Merchants' Bank, $490. Cash S't $156. 9— Shipped per G.T.R, and consigned to C. Hutchinson, Toronto, to be sold on our acct. and risk. I 100 lialf Chi'sts E. B. Souchong Ten, 20 lbs. net each, at 79c; t P^id Freight on tlie same iw| Check, S15. T. B. Dean pays his acct. in full to date by contra account for repairing slor*. $4, and Cash for the balance. Sold S. Thomson, on account, 30 Boxes Bloom Raisins at J3. Cas/i .*?rt/p.v, SI 79.60. ll--Bought of David Cheesman & Co., London, on Note at 3 months, 16 boxes Mould Candle»,3J| lbs. PBch, at llic. ; 30 boxes Bloom Rai.sins at $3 ; 2 cliests Y. H. Tea, 9(\,7i ; 110,12^ llis.ati 69c. Paid Freight, Sl2. Deposited in .Mercluint's Bank, $1250. Sold W. Drewry, on accoiiiii,| 1 box Candle^, 5J< lbs., at 1.3jc. Cash Sales, %\1i. 12— Received of Thomas Moore . Piiid Fn'ight, §14. Received Ca.sh for A. Hamilton's Note with Interest for time overdue. Sold \V. Uaymore, on acet., 00 lbs. Cheese at 12ie. ; 1 bo.x Kaisius, !:?3.25. C'a«A .S'(//cs, §219.00. Ui— Sol'l John Tenipleton, 40 doz. Urooms at $4, for which he paid by contra acct. agaiuH Student S'JO; Cash for balance. Received from R. M'lson A Son, Londou, to be sold on their acct. aud risk, .^0 bbls. Sugar, invoiced at §20 ; paid freight, $30. Remitted James Gunner ic (Jo., Bank Diaft to balance acct. E.xchange i per cent., paid Cash. 6't the Ca.sh transactions directly from the Cash Book to the Ledger. THIRD MONTH'S BUSINESS.— Set XI. March 1, 1885. We hiivo this day closed our Retail business and formed a partnership with P. V. Dorland for the purpose of coniiut-ting the Wholesale Grocery and Shipping business, renting from A. Diamond, store No. 9G .lunio-! street, at $800 per annum. Gains and losses to be divided in proportion to capitiil invested. P. V. Doiii.ANri invests Stock of Groceries as per Inventory, §19,500 ; Cash, $6,000 ; Store Fixtur;?, $620. The tiiin assumes for him a Note of §1000, favor of George Lewis, dated February 28th at 3 1 months. Engaged Thomas Way as Accouitant at §900 per year. Receivoil from W. Drewry, Cash in full of account. Bought of Rimmer, Gunn & Co., Montreal, on 4 nionllis, 12 bags Rio CotTee, 13H,12; M3,13J ; 127,11^; 128,12; 142,14; 147,14J; 146,12; 139,11,!; 13H,12; 152,1GJ; 14G,14i ; l.iG.lCi lbs., at 32c.; 10 chests Gunpowder Tea, 150,16; 14rt,14"; 120,12A ; 147,13.}; 142,10; 14J,14A; 156,17^; 143,21; 134,14; 144,12J lbs., at 60c.; IJ cask? I!i riicaux Vinegar, 46 gallons each, at 35c. Sold Smith & Cook, Brockville, on their Note .It, on days, 4 bags Rio Coffee, l.'W.TJ; 127,UJ; 128,12; 129, 11 J lbs., at 40c.; 5 barrels Extra riour at S7.o0 ; 2 barrels Mess Pork at §14.50. 2 — Bought (if J. H. R. .MoLson & Bros.. Montreal, on 3 months, 100 barrels Superfine Flour at §6,50; lObo.Ki's " Western Leaf " Tobacco, 11,-),10 ; 125,12J; 119,13; 117,11J; 116,12; 115,9J ; 118,10; 120,12^; 110,14; 113,10.} lbs., at 42c. Received of W. Ponton Cash in full of account. I Sold J. Waltham & Co., Guelph, on account 20 barrels Apples at §3; 10 barrels Flour at | $8.* 3— Received of R. D. Anglin his N6te at 3 months with interest at 7 per cent, in full of account to I date. Bought of J. Morris & Co., on our acceptance at 90 days, 800 barrels White Fish at | $4.50 ; 50 barrels Mackerel at §6 ; 1000 lbs. Dry Cod at §4.75 per cwt. 4— Shipped per G. T. R., and consigned to W. R. Ross * Co., .Montreal, to be sold on joint acct. and I risk, each equally interested, 400 barrels White Fish at §5 per bbl. Paid Cash for repairing Store Fixtures, §75; sundry Expenses, §24. * Salcq on nccnnnt aro intended to run 30 days unless othomiac specified. nil 5— Bonght of John Cook, Belleville, on 3 monthH' credit, 200 barrelH Trout at $5.75 ; 60 barrels White Fish at 1i4.50. Paid Freight, f30. S. O. Beatty, with the conHont of his partnerH, this day disposes of hii( entire interest in the business to W. B. Robinson for a certain consideration. * Received from V. Hudson, Montreal, to be sold on joint account of Shipper and ourselves, J each, GOO barrels Superior Extra Flour at $ii.50. Paid charges on same pei* Chcck on Merchants' Bank, $49.50. Sold Massie Jc Peterson, on their Note at 2 mos., 300 barrels Superfine Flour from Mdso Co. " A," at $7.80. 7-Sold 8. Moore, James Street, for his Acceptance at 2 months, 50 barrels Trout at $6.50 ; 20 barrels White Fish at $5.60 ; 5 bags Rio CofFer, 130,12; 152,16; 147,14ii 138,12; 156,161 lbs., at 40c. W. B. Robinson withdraw.s on account. Cash, $40. 8— Received Cash in full for G. J. .Sherry's Note of January 25th, with interest to dato. Sold J. Farmer, Macnab Street, for Sight Draft on F. Stinson, a bill of Mdse. amounting to $540.t Sold for Cash the balance of Flour belonging Mdse. Co. "A," at $7.90 per bbl. 9— Deposited in Merchants' Bank, $1200. Received from J. Wilson, Goderich, to l)e sold on joint account of shipper, George Moore and ourselves, each \, 1000 barrels Salt at $1.50. Paid Freight and sundry expenses on same per Check, $17.50. Sold R. Eastman, on account, 500 barrels Salt from Mdse Co. " B." at $2.20 per barrel. J 10— Closed Mdse. Co. "A," and rendered Consignor an Account Sales. Our charges, 3c. per bbl.; Commission, 2i per cent, on sales. Bought of J. M. Hawley, 1000 bush. Barley at $110. Gave in payment Draft at 30 days on R. Eastman for amount of his acct. Paid Freight, $5t». Sold N. Boulter, for his Note at three months, the balance of Salt belonging to Mdse. Co. "B.' at $2.15 per bbl. 11— Shipped to P. G. Close & Co., Toronto, to be sold on joint account, 150 boxes Bloom Raisins at $3 ; 125 boxes Layer Raisins nt $2.40; 75 boxes Valentia Raisins at $3.25. Paid Freight on same, $15.30. Received from W. R. Ross nionthH, drawn to the order of J. W. Parker, endorsed liy limi, di-Jijouiitod at Mcrehant.-t' Itauk at 7 per cent. i)er annum, net proceeds of wiiirji rtin-mii, t" 5".m;o. 30— Paid our note of Fvh. lltli, favir D. Checseman & Co., less discount at 8 por cent, for uu- ('.■cpired time, ^11— I'uM 04.C iiiiaiter"s Rent of store per check. ^'LlKU'IKNT }i)j[iHK. I NHOLD TO ALLOW A PROFIT OF 30 PER CENT. ON SaLES. Total Hit On in, $32.')7,0(i. A.-* this enilH the tranKuctions of tlie third month, and a partner is about to retire from the tiriu, you are required to make out a Trial liulaiicc and IJalance Sheet. As this Set is supposed to end aiiotiier year. < lose all .the accounts iu the Ledger, and bring down the balaiicos as heretofore. Jt will be ueccssary to take clerks' wages into consideration before leiuleriiig a statement, and as runt has beeu puid for two mouths iu advauco, it must bu cstinuited iu the luventtiry. FOEM OF A MONTHLY TRIAL BALANCE. Ful. 1 Aoco'.i.iU. Dr. Januniii. Cr. Dr. Febrxiary. Cr. Br • . March. Cr. .'■)n \V. II. Mari^ii, WIH 50 ; (!!I74 30 '2;)u 140 .■il S. W. Manner, •ji;io ,; 8708 475 239 (^'?. Cash 47t;o ■\ VllA '2400 46 1450 1208 40 1174 SO ::.\ Mereliniidise, '.1704 i! ;i.-.48 1.342 50 1 329(i 48 2104 80 2430 ',() .')4 Hills lleceivii'jie, 8-J40 i( oioo 2400 1^H Interest, 18 1 60 20 40 30 10 5 GO 59 l']xpense, Januai~y. 180 50 38 47 00 33600 50 33060 m W. W. Post, 10 61 Coninussion, 156 30 20 40 f>'>. Ljss and Gain, 270 40 140 30 63 F. Rimmer, February. 1142 24 940 28 234 60 8970 97 8970 97 fi4 Peter lluff, 2C0 100 ()5 Jnnies Stanley, 596 70 60 Robert (iordon, March. • 611 68 0301 28 • 6361 28 ' - * Yoa Are required to tiiul tlie face of tills note. 117 Tlic above fonn of Trial Balanco will roquirc roviil jajHT ruled with cix Dibi* and Credit Cdluniiii! en cell j'ajzc. A Trial l{n!anj 1 ^ tare X . .;^i-lJ oTer 2<-Vi 147-l.l.i l.iG— 1.;|| 435— 42j 729—71 = 058 lbs. at 40c. Acceptance ut 2 months. 203 20 t;o8 20 C D. 8 J. I'AIt.MEI!, ifcNab Stree>. 4 bbls. StronfT Bnker's Flour, at 56.50 2s, $15.50. Reraitt.-d Riramer, Gunn & Ca.i draft on the Bink of Montreal for the amount of tlieir invoice of the 1st instant, less 3 per cen: Paid Cash for draft and 4 per cent. Exchange. 7 — Had W. Ponton's acceptance of the 4th instant discounted at Merchants' Bank at 7 per cent, fi: | unexpired time. Discount $ — . Casii received $ — . Sold W. Bristol, for Cash, from Mdse. C- " D.," 400 lbs. Clieese, at 12^c. Paid Gas Bill, $11.90. e — Received from P. G. Close & Co., Toronto, an Account of Sales of the Raisins shipped them or, the lull ult. Our net proceeds and payment for ^ invoice remitted by Draft on Bank t: Montreal $1131.25. 9 — B jiiglit of S.nclair, Jack & Co., Montreal, on 30 days, 11 half-chests Colored Japan Tea, 69, 64, ''■ 70, 65, 08, 72, 73, 77, 74, 71 lbs. gross, tare 15 lbs. each, at 60c*; 21 half-chests Gunpowder Tea, Nos from 114 to 13,5—55, 68, 74, 71, 73, 72, 71, 69, 63, 67, 64, 69, 73, 72, 71, 70, 72, 73, 68, 06, 7U Ibi. gross, tare 14 lbs. each, at 66o. Paid Freight on above, $19.50. Bjld for Casli from Mdse. Co " D.", 200 lbs. Cheese at 12Jc. 11 — Closed Mdse. Co. " D.", and rendered John Cook an account of S.iles. Our Charges fori Drayage, $3 ; Commission, 3} per cent. Sold A. Henry, for Cish, a bill of goods amouutingio I $1500. , 12— Paid a drayman $5 for carting from store remainder of Apples belonging 'to Mdse. Co. " C," tbe.t j having all decayed on account of exposure. Sold H. Armstrong, for Cash, a bill of goods | a-nounting to $2100. Deposited in Merchants' Bank $2000. 13— Had our stock of goods insured in Imperial Insurance Co. for $20,000, at 2 per cent. Paid rre-| niium per Check. Rendered R. Town, Kingston, a statement of ilie A|iple8 received ou tlie UA ult., for sale on joint account, and n^mitte I the amount due him per Check. Sold VV. B. BirlKr,| for Cash, a bill of goods amounting to $2500. 14— Sold John Cook, Belleville, on his acceptance at 30 days, 14 bbls. Museovado Molasses, 42, 43. 40, 49, 45, 47, 40, 42, 48, 43, 44, 40, 41, 49 gall., at 30c. Sold W. R. Muir, for Ca»h, an invoice ol| Tea amounting to $2150. \ / ■m 119 15— Bought of A. Urqubart & Co., oa our Acceptance at 60 days, 80 casks Bordeaux Vinegar, 50 gals, each, at 30c. ; 60 do Amber Syrup, 44 gals, each, at 69c. ; 100 casks Barbadoes Molasses, 45 gals, each, at 32c. Paid for sundry Expenses, $13.50. IG— Bad John Cook's Acceptance of the 14th inst. discounted at Mercbauts' Bank, at 7 per cent, fur unexpired time, and net proceeds left to credit. Sold Charles Hmitb, for Cash, a bill of §1500. Received from S. Thompson, Cash in full for his Note of February 13tb. Sold F. Dixon, for Cash, an invoice of $2150. 13— Shipi)ed per Steamer Passport, and consigned to W. Basnan & Co., Toronto, to be sold on joint account and risk, each J, 400 bbls. "Extra Superfine" Flour at $0.50; 150 bbls. "Spring Extra" at $0; 250 bbls. '• Strong Bakers'" at $5.90. Paid Insurance on same, $30. Sold for Cash a bill of $750. 13— Remitted Sinclair, Jack & Co., a Draft on Montreal Bank for the amount of their invoice of the 9th inst., less 3 per cent, discount. Paid Cash for Draft and ^ per cent. Exchange. " Bought of Geo. Flower, on cur Note at 3 mouths, 60 bbls. Salmon at $!j.75. Sold C. \V. Raney, for Cash, an invoice amounting to $1850. 2'}— Called upon II. U. Mountain, London, to effect a settlement, found him unable to pay his indebted- ness, and compromised for 75c. in the dollitr. Accepted Note against George Ritchie for $1200, dated February 1, at 3 months, and Cash for the balance. 21— Had Geo. Ritchie's Note, received 20th inst , discounted at Merchants' Bank at 7 per cent, for unexpired time, and net proceeds left to our credit. 22-Discounted our Note of tlie 19th inst., favor of Geo. Flower, at 10 per cent, for unexpired time. Discount off, $ . Amount paid per Check, $ 2t— Sold W. R. Barber, for Cash, an invoice amounting to $850. Deposited in Merchants' Bank, $1000. ' Bought of J. Wilson, Goderich, on our Acceptance at 30 days, 300 bbls. Salt at $1.75 ; 200 bbls. Aless Pork at $16. 25— W. Bahnan & Co. have this day returned the whole of the Flour shipped them on the 18th inst. Charges paid by them as per statement, $30. '■ Sold John Cook, Belleville, on acct., 7 cases Bordeaux Vinegar, 38, 36, 39, 42, 41, 43, 40 gals., at 33c. 2:-Received from P. Miles, Cash in full for his Draft of the 26th ult. Sold Geo. Wallbridge, for Cash, an invoice of Te\s amounting to $1120. J. C. Cliilman & Co. have failed, and are able to pay but 60c. in the dallar. Accordingly, we have received from the Assignees 60 per cent, of the Note we lield aga.nst tliem, in Cash. Lost the balance. 23— Bought from John 'i'empleton, for Cash, 2000 bbls. Goderich Salt at $1.75, and shipped the same to J. A. Mathewson & Co., Jlontreal, for sale on joint acct. Paid insurance on same, $79.50. [ 2)-Tlirough a disastrous fire last night, our stock of goods was entirely consumed. Nothing saved [ hut tlie books and other papers kept in tlie safe. Mdse. on hand yesterday, as per Stock Book, $30,200. 1 3')— J. P. Thomas, agent for V\e Imperial Insurance Co., in which wo were insured, has prora;)tly adjusted the loss by giving us the Company's Check for amount of insurance. At a uieet'mg of the partners it ha.s been mutually agreed that the business .shall bj Nisooutiuued, the books balanced, a settlement effected and the partnership dissolved. After journalizing the entries from the Invoice Book and Sales Book, journalize to the I credit of the clerks their salaries to date. In order to effect the above settlement discount all Bills, both payable and receivable, I at 7 per cent. ; receive Acct. Sales of the two Shipment Co.'s, each one to show a profit of 550, take off a Trial Balance and statements showing the condition of the business. Deal with Loss and Gain, balance the Accounts and bring down the balances. Next proceed to 'vinfl the business up.* Collect all accounts owing you, and payoff all liabilities, including the purtners, through the Cash Book. When you have posted these Cash entries to the Lodger the business will be wound up atid the books closed. A'e< Loss, «1555.0fi. * Romombor that tlio sniii of tlie Resource? always ciiuals tlie sum of tlio LlatiilitieJ nnil tlio Oai)itiil ; s-o it you turn I 111 four resources Into cash yon will have a sura aulliciaiit to pay oflt all llabililioH ami pay thT partners tU'^ir capital. If > boalncas Is Insolvent the sum of the Liabilities equals the sum of fie Bescurcos and Insolvency. Mm 120 SET XII. ADMINISTEATOR'S FORM. An Administrator is a person appointed by tlio judge of tlic Surrogate Court to setilJ the affairs of an intestate — or a person dying without a will. His duties are gpeciaiiJ described by the statutes, and pertain, first to the liquidation of outstanding debts aaj collection of amounts duo the estate. Next to the proper distribution of net assets amurij the heirs, or their legal representatives. That the position is a re.> iefi| behind. Property sold tlirough the probate courts generally brings only from one-hall't two-thirds the price it would command if the late owner was alive and disposing of i himself. This is due to tlie fact that, if there had been any irregularity in the legal proceeJJ ings connected witli the sale, the heirs are very apt to rake t!ie matter up, and try torccoveii the property. In addition to tliis injury to the propcrtyof deceased persons, come legiil anl court fees, referees' charges, advertising, and many other loop-holes which drain tlic e^tntf.l It is particularly unfortunate I'or heirs and legatees if the pA)porty left to them is covcrM by a mortgage. Tlie mm w'lo loves his wife and children should endeavor to keep liii| affairs in such a state that, if he were suddenly called away by deali, his property wo be in such a well-arranged condition as to yield something l:ke its real value. In this set you will keep neither cash book, nor cash account in the ledger, but J all in ca.sh transactions entirely with the Bank. Ymi will deposit all ca.?!! received in t!iJ Bank, and make it debtor ta the account for which the money is received. You willm.ikJ all payments by cheque, crediting tlie Bank, and debiting tlie account for which it is pail The opening journal entries are: Sii'idries (Resources') Dr. to Smith's Estate, and Smith's Estate Di-. to Sundries (Liahillties). The difference between what is debited and credited to the estate being its value wIkuJ you assume the functions of Administrattr. ADMINISTRATOR'S FORM— Set XIT. Belleville, Oct. Ut, 1685. * this day having received letters of administration, enters upon the dutiii-oi Administrator for the Estate of John Smith, deceased, and is to pay off all just liabilitieJ and necessary contingencies, and after converting surplus into Cash and deducting commis sion, divide the remainder among the nine heirs in such proportion as the law provides. •Student to uso his own name. The following IJottoms, $32. D( \ ) / 121 The following is a list of suoli Rssourcjes anl L'AiiLiriES us c n, at tliis t"mc, ; ascertained : KESOUIICES. jf, Jones owes on acct., $'30; Tlnmu Gibertson, S.^T.SO; George II. Dean, $73; X. W. Phillips, Sa4; W. SuUierlnnd, $50; L. II. BDttoiis, $32; W. Graham, S4") ; John S. Miller, STJ ; A. I,. Ge.'D, §28; W. A. Oitrora, $52. Nutks— ■\Villiam Lacy's for $250, dated Januury Ist, 1884, at 6 per cent, interest; W. H. Stinson's for $100, dated August 14, 1884, at 7 per cJnt. ; A. Overell's for $23, dated SL'ptnmber Ist, 1885, at 8 per cent. Interest due on above notes 10 date, $ — . Farm, as per valuation, $4,000; Farming Iraplemfnts (as per Schedule A), S400; Live Stock as per v.'luation (Schedule B), $501 ; Furniture as per valuation (Schedule C), $250; Deposit in Merchants' Uank, $:5)2; Deposit receipt Moutreal Uank, $1,000, dated Jiui. 1st, at 4 per cent, interest; Mortgage from Tlios. Jones, $400, dated March 1st, 18S3, tjenring 8 per cent, interest, pnyable half yearly ; interest due on same from Sept. 1st, 1885, $— . 10 shares of Moira Cheese Factory Stock, par value $20 per share. Total Resources, 3S008.52. LIAniLITlES. i,ff. ycomans & Co., on acct., $51; G. 0. Holton & Co., $25 ; J. S. Mcudell, $28 ; John Lewis, $18. .Votes— Favor Robertson & Henry, $50, dated July Ist, 1885 ; John Cook, $35, dated Augmt 1st, 1?85. Total liabilities, $206. -Paid Lewis Roenigli, undertaker's bill per Check, $50 ; Paid Probate and Lawyer's fees per Ciieck, f25 ; Paid Mrs. J. Smith for house expenses ]icr Check, $25. -Sold Live Stock by auction for $)00, less 1 per cent, for Auctioneer's Fees, paid to A. Keys ; I'sid for Advertising Sale in the •' Intelligencer " and " Ontario," $10 ; Deposited in Bank, $— . p-Collccted the following accounts : Thomas Gibertson, $:i7.50 ; Geor^re II. Dean, $78. -Paid L. W. Yeomans & Co., in full of acct., $50 ; J. S. Meudell, in full of acct., $28^ per Check. -Paid G. C. Holton it Co., in full of account per Check. -The following amounts due by the Estate were not enumerated in the original list: \V. Johnson, ?13; J. II. Hambly, $12. f-feceived Cash in full for the fdlowing accounts: W. Jones, $ii0 ; N. W. Phillips, $54; L. II. liottoms, $32. Deposited amount in iiank. -Mh. John Smith assumes the furniture (as per S •hodule C.) at v.iluation, $i5ii. -Transferred the 10 shares Moira Cheese Factory Stock to William Adams at 5 par cent, premium, ik'posited amount received in Hank. -Sold the Farm to Js-hn Smith, jr., son of dece.asod, at valuation, al^o sold him tlie Farming Inide- iiio;its (Schedule A.) for $40u ; received Cash (deposited), $4000 , balance on account. Paid .Mr3. Smith for house expenses, $25 ; on private account, £20, per Check. -Received Cash for the fdlowing Notes and interest on snm3 to date; "W. l,acy's, $250 ; W. II. .Stinson's, 8100. Deposited amount in Iiank. ' -.\'5ii,'ncd to Mrs. John Smith, Thomas Jones' .Mortgage ; Interest aceumuhitc 1 on snmc! to date $ — Riccived payment for the following accounts: W. Sutherland, §50; W. Graham, S4">; A. L. Goon, $28. Deposited amount in Bank. -.\. Overell jiaid his Note with Interest to date •? , received from J. S. .Mill r in full of account, sT5. Dejiosited in Bank. |-Piiid John Lewis and William Johnson in fiill of acct. per Check. -Paid Note favor ftubortion & Henry per Check. |-Paid Thomas Smith o.i account, pjr Check, $50 ; paid Note favor J jhn Cook per Check. -Compromised with W. A. Oslrom for the amount of his ir debteilness, he having produced a Receipt of S20 on the account, from the late John Smith, I accept §32 in full settlement. Received Cash tor Deposit Receipt from Montreal B:mk, with Interest to diile. Deposited amount in Merchants' Bank. Paid J. H. Hambly in f.dl of accau it per Check, $12. Appro- priated for my services as Administrator $150, per Clieck. To THE SruDENT. — You will now journalize and po^t the work, take off Trial fiance and Statements (or Combined Statement), which will show the undivided interest [the heirs in their representative account Smith's Estatj, Having complete 1 the work of Hfl ■•i4^ ■M '■'W4tj mm 122 converting resources into cash and paying off liabilities, you will now credit the heirs with their respective interest. The widow will have J the net proceeds of the estate, and each of the other heirs J of the remainder. You may next make the necessary entry for closing the accounts, which will be to pay off all the heirs per Chtcic. Loss, $175.77. CONDENSED SYSTEM OP BOOK-KEEPING FOR RETAIL BUSINESS '^\\e principles of Double Entry Book-keeping being fully understood, the Accountant can choose the particular style he may think best adapted to the business in which he is engaged. The prime object should, of course, be efficiency, and if a short condensed plan will give this result it should be adopted. The Six Column Journal method (sec Sot X) is adopted by many, retail houses, anl is admirably adapted for many lines of business, so is the plan of keeping a special column j for credit sales of merchandise in the Journal, and posting them monthly in one sum, to the credit of Merchandise account. (See first month of Set XI.) There are also the varioujl methods of posting from Auxiliary Books direct, which large manufiicturing and other establishments pursue. Wo desire here to point out a system for a Retail Business other than those rifirro- to, whicli wo know by experience is thoroughly efficient, and easily understood ; it.i main I features being, keeping a Day Book Index, and Jouru'tlizing monthly. The Books to be used are : — Day Book and Index, Monthly Cash Book, Ledger, Invoice Book. Blotter Cash Book. Journal, Bill Bo of this date. Kncli partner is to be allowed interest at 8 jier cent, on amount invested and charged at tlje same rate on sums witiidrawn. Stuiie.nt I.vvi:aT.s : Gush, 88,500; Note apiin='t James lirown fur S'JOOO. dated December Ilth, 1884, at 4 months. A. M. SpafTord invests Ciish, 5>I2,noO; Note n?ainst Peter Williams for §1500, dated October 21st, 1S81, at niontlm, with interest at 8 ]cr cent. Interest nccrued on game, $")4.00. Accepted DmI't on F. J. Dixon for SlW)n, dated March '24ih, lsg5, at :iO days. Paid for a set of Books, S21.40. 2-I)'jiight of A. R. Pattersdn his entire stock of manufacturing implinients, iron, etc , amountinp:, as per inventory, to $!.'),, 'iOO ; 100 cords of Wood at S">. Gave in p.iymcnt '00 per year; John Davis, as Forem.in of the Finishing Shop, nt S2.7,j per c'.iy ; Georp;o Ahrnh:ims, as Foreman of the Moulding Sliop, at S2.50 per diy; Alexander Win:ers, Black-mith, at $2.25 per day; Itcbert Jones, Wm. West, Henry D:irnley, 8u'ph' n Po.'st, Wnrncr Pott?, Isaac Haming, George FiVeretti Samuel Lynn, Thomas I'etre, Arcli. Ewiiigand David Liddill atSl.DOfacli per day; A. M. Fraser, S. II. Hudson and P. M. Grass at ?1.25 ler d;iy ; Wni. Slonehiirg, as Engineer, iil Sl.T.i per day ; and Thos. Uob'^rt.s, J inici Long and W. II. Spring at ^I.'IO per day. .Services to commence on Monday. 4— Made arrangiments vilii W. A. Foster k Co. to supply machinery for a new mill, which they are about to erect; also with W. W. Jones & Co., and A. S. Page & Co., to supply and repair niacliinery a.; specified in the Articles of Agreement. Sold .M. 11. Culeuian, for (^ash, 1 Double Crook Ilurltrtirt Plough, ,S15 ; 1 Scotch Canadian do, S12 ; I Ten-horse jiower and Rods for same ; SlOO; 1 JIaple Leaf Cooking Stove and Trimmings, ,S32. Roliert Airams, who is acting as agent for the sale of our implements, lias tJiis chiy received 7 Scotch C inadian Ploughs at §10 ; 4 .Moliawk Valley Cliiiper do at §0; C Double Crook IInrll)urt do at $'2.' 5— Ij'iMglit of Frothinghara & Workman, Montreal, on acj't, llo wid liar Iron, amounting ag per invoice to $490. Paid Freight on above, §27.40. Iloiight of W. & F. P. Currie k Co., Montreal, on acc't., invoice of Pig Iron, amounting' to §950. Paid Freight a:id Cartage on same, §35.70, Foikman's RKi'onr.— Lost time, J day Winters; i day Raining: i day Post; i day Darnley ; and i day Davis. Work to be charged, 5 hrs. Winters, 2 hrs. West, 7 hri. Everett; drilling and dressing spiders for A. S. Page & Co., at §4 per day.f 6— Delivered per order of our agent, Robert Abram-, 2 R^'yuolds' Water Wheels at §(38 ; 1 SoUick's do, §00; 2 Leffell'sdoat§125. Sold Wm. Cook, for Note at 3 months. 1 Wood's Mowing Machine, §75 ; Reaping atiacliraent for same, §25; 2 Steel Ploighs at §10. Paid sundry expenses, §4.20. S udent withdrew on acc't., §1,')0. *.\s itr. Abranis lia^ taken those implements nwny from tlie ship, charge liim with them the same ns thoiigli lie • tually bought tlicni, aiul give lUm oreiiit for anything he may rptnrn. t The hands wlio arc not reportc> hours Everett, 2 hours West, and 1 hour DaviJ, on conneeting rods, $4 [n'r day. 19— Received from W. W. Junes & Co. their Note at 3 months fur the following machinery, delivered to-day : 2 Stcnm Boilers, 14 x 5 feet, at $1500; 2 Globe Check Valves (U in.), at §5 ; 4 Globe Check Valves at $3.30; 2 Butting Clmins, 240 lbs., at TJc. ; 2 Sawdust Grates, 174 lbs , at 8c. Received from Robert Abrams, Cash on account §100. FoRE.MAN'8 Report. Lost time, Jones, \ day. Extra work tor A. S. Page k Co., 8 hours Liddell, 1 day Ewing, 1 day Petre, 5 hours Davis, on connecting rods, at $3.50 per day ; 4 hours Darnley, 8 hours Post, and 5 hours blacksmith and helper, on pumps and connections, at $4 per day. 20— Had A. S. Page & Co's. Note of the 16th inst. discounted at Montreol Bank at 7 per cent. Dis- count, $ — ; Cash received, $— . Shipped per order of B. .\bram?, 4 Reynolds' AVater Wheels at §75 ; 6 Sellick-s do at $100 ; 1 Excelsior Horse Power, §80. FoiiKMA.N's Report. Lost time, D. Liddell and A. Ewing, 1 day ; T. Petre, \ day. E.'ctra work for W. A. Foster & Co., 4 hours Davis, 7 hours Jones, 1 day West, and 1 day Darnley, on connecting rods and keys for same, at §4 per day. 21— Had W. W. Jones & Co's Note of the 19th inst. discounted at Montreal Bank, at 7 per cent. Dis- count, $ ; Cash received, $ . Remitted W. & F. P. Currie i Co., Montreal, Bank Dr.ift for amount of their invoice of 18th instant, less 2A per cent, discount ; paid Cash for Draft and J per cent. Exchange. FoREMA.N's Report. Lost time, D. Liddell and A. Ewing, absent all day. Extra work for W. A. Foster & Co., 1 day blacksmith and helper, $5 ; 7 hours Post, 4 hours Jones, 6 hours Petre oa connecting rod^, at $4 per day. 22 — Paid D. Liddell and A. Ewing in full for services to date, and discharged them. Received from R. Abrams, on acc't,, W. T. Heaslip's Note at 3 months for $500. Paid John Davis, Foreman, $10 on acc't.* Sold Gilmore & Co., for Cash, 2 Steam Engines, " 14 x 16," with Heaters and Set Gear, $1800 ; 2 Steam Boilers, 14x5 ft. at $1550, less 2 per cent, from the total amount. Foreman's Report. Lost time, Robert Jones, reported sick. Extra work for W. W. Jones & Co., 4 hours Petre, 6 hours Grass, 1 day Hudson, 7 hours Eraser, dressing and fitting Wooden Rollers, at $3.50. 23— Engaged Robert Way, S. Boyle, and H. Cover, at $1.50 per day, services to commence on Monday, the 25th inst. Had II. T. Heaslip's Note of the 22nd inst. discounted at Montreal Bank at 7 per cent., and proceeds left to credit. • When hands receive anything on account during the weelc, deduct the amount from their wages on pay day, and just keep a memo in the till to represent it till tlien. i:''^-ri T^-Kl If. 128 To: kman's Report. Lost time, Robert Jones, absent. Ejctra work for A. S. Page At Co., 8 hours I'liils, 4 limirs Everett, cutting Bolts; 1 day Lynn, 7 Iiours West, busiiing old Pulleys, at $4 per ihiy. Paid liands in full for services. ■2') -i;(>ci'ivr(l from Peler Williams, Casb ^for his Note of Oct. 2l9t., and interent tliereon. Itcmittcd I I ' tliinglinni & Workman, Montreal, a bank Draft for the amount of tlieir invoice of tiia ICtli lii-l., less '1\ ptr cent., paid Cash for Draft, und |^ per cent. Exchange. Delivered per order of R. .\linun3, la Scotch Canadian Ploughs at $10 ; 8 Double Crook Ilurlburt do at $12 ; 4 Side Ildl do at $8.,'i0 ; 2 Reynolds' Water Wheels at i?7j. i'miKMAN'a Rkport. Lost time, Petre, [ day ; l per day. Sloiicburg, Davis, Post and Lynn worked overtime \ day. 2C— We are necessitated to suspend operations in consequence of putting in a new boiler, tiie old one being considered un.^afe. The liands required lo assist in making the ctiango are, Davis, Jones, West, Post, Potts, Lynn and UufT, tb« others are not required until we commence operations again. 29— We allow A. R. Patterson, $'.)00 for the old boiler, and charge him $1800 for the new, connections therefor and labor in making the change ; difference to be applied on rent. Received from R. Abrams, Cash on account, $200. FoiiKMAN'8 Rkpout. Lost tiino, Lynn, J day. P^Ktra work fm- W. W. Jones k Co., 1 day Roberts, 7 hours Long, 8 hours Spring, 3 hours cogging wheels, at $'! per day. Stoneburg, Davis, llufl", Spring, Long and Post have each worked overtime ] day. Received from F. J. Dixon, Cash in full for his Acccittance of March 24th. Paid our Acceptance of the 14th instant favor of Frothing- ham & Workman, per Clicqiie. 30— R. Abrams has returned 4 Double Crook PL Ploughs at $12; 3 Scotch Canadian do at $10; 1 Side Hill do, $8.50. Sold Robert West, for Cash, 2 Steam Engines (35 IL P.), at $750 ; 3 Steam Boilers (50 H. P.), at $1000. Foubman's Report. Lost time. Huff, \ day. Extra work for A. S. Page & Co., 1 dny Post, 5 hours Huff, fixing pumps, at $4 per day. The following hands have each put in | day extra time : Davis, Jones, Everett, Petre and West. Pay the hands in full to date, credit Ilcnt, take off a Trial Balance and Balance Sheet, and clo.-?e the accounts. Inventory, $82G2.9G. / Merchandise credit in Journal, 810,9G9.44. Net gain, $4138.02. Cash on hand, 833,141,28. Time sheet footin-s, ?.o. 1 $181.67, No. 2 8187.97 No, 3 $181 .Gl, No. 4 $143.G1. 1! REMARKS ON SET XIII. The material from which the transactions of this Set are constructed was obtained from an extensive fonndry and machine shop, and the routine has the merit of being prac- tical. The forms of the books, and arrangement of the various records, are submitted at being very simple and in general use throughout the country. The form of Day Book adopted is similar to that of Set XI., all crgdit sales of merchan- dise being extended into the outside column and forwarded from page to page until the end of the month, when the total amount is posted to the credit of Mdse. account. When work is charged by the day it is extended and posted to the credit of merohandise the same as though it were the sale of a manufactured article. This plan is adopted in the majority of machine shops, because the labor of hands is continually engaged on implements or machinery of some kind, which, when sold, will go to the credit of merchandise account. 120 iind it would bo very trouMesouie to keep the cost of material and work nc'iiaratc I'loni one another. Ill uianufactorios where the hands are not paid weekly, and arc allowed to draw ore their wa^is accordingly, tiure in no way of keeping a running:; account willi Pacii of (he lumJ.s witli loss troulile ami great r accuracy tluiii by adopting liio plan ol' keeping a small Ledger exclusively for the accounts of tiio hands ein[>loyeil, called the " I(and«' Jicdgcr." The adoption of this plan a.ives the opening id' to many accounta in the (icncral Jicdger, keeps the accounts of hands tngcthtr and x'paratod IVoiu all other accounts, and avoids trouble and detention at t!ie tiino of miking out a Trial Ualanceor balancing the (Jr ncral Ledger. A column should also be kept on the credit side of the Cash Hook for umnunt.i paid hands, and when nmnoy is paid to one of the hands it should he placed in tiiis column and imniediatcly ported to the ih'bit of his account in the Hands' Lodger. When a " Hands' " column is kept in tlio Cash IJuok it is footi'd and I'orwarded to tiie end of the month and then posted in total to thn debit of IJands' acc't. In cases where the Hands' ]jcdger is adopted, it is necessary to keep a " Hairls' Account" in the (jeneral J.rt:dger and credit it from the Time Book, at the end of caeli wecii or montli as the oa.'C may be, with the following entry: " Wages account i)r. to If finds acc't." This plan keeps the two Ledgers entirely distinct from o.icii other, the one account in tho General Ledger containing tho usuit of all tho accounts in tlic other Ledger, and showing at any time the amount owing to hands. When tho hands are all pai I off and ihe Hands' Leilger balanced^, this account must balance ako. PLANT ACCOUNT. It will bo observed by the student that the proprietors of this busi^iess ritit the Foundry already fltted for their purpose, but 8uppo.se they had purchased it, and the necessary machinery to carry on their opjrations, they would require an account in the Ledger to represent these, which is called Plant Acchunt. To the debit of this account is placed the cost of the permanent plant of the concern, — by this we mean the machinery and tools by the use of which its goods are produced, and not anything that may bo purchased to be sold or manufactured. W^hen closing the Ledger there are two ways of dealing with the Plant acc't. Owing ti wear and tear the plant of the concern is now not worth so much as it was when you purchased it. or when you last ch)sed your books ; hence you must " write off" a portion of the amount charged to the account to Loss and Gain, so as to leave the debit at the figure you estimate you could sell the plant for. You may write off say 5 per cent, by making this journal entry, and posting It : Loss and Gain, Dr. n'*^ To Fhint Account. For 5 per cent, written oflf for wear and tear ; then close tho account By Balance ; or you may take an Inventory of each part and piece that makes up the plant of the concern, place the amount of the Inventory on the credit side of the account and close it By Loss and Gain. Any "property account, such as office furniture, would bo dealt with in like manner. ^1^*1 180 Want of spuce prcvouti us from recording luoro than a f«w of the firit traaiaction& iu the following FORM OF DAr BOOK— Set XIII. BtlUville, April \tt, 1885. |L<«I. fol. Sundries Dr. to Student ... For following iuvestraent: Oasli as per 0. IJ Bills Receivable, J. Hrown's Note, B.B. $■^500 00 2000 00 Sundries Dr. to A. M. Spafford For investment as follows : Cash as per C.B Jl 2000 00 Bills Rec, Note against Williams and Draft on Dixon, as jier 15 H. 2500 00 Interest accrued on above Note 54 00 Merchandise Dr. Fuel, Dr To Bills Payable Bought of A. 11. Patterson, Implements, Iron, &c., us per invoice, and 100 Cords of Wood at $5, for which we gave 4 Notet at 3, 6, 9 and 12 months, for equal amounts, as per B.B. 4 ....?15500.00 500 00 Robert Abrama Dr. to Mdse. For 7 Scotch Canadian Ploughs, at flO.OO 70 " 4 Mol-awk Valley " y.OO 30 " 6 Double Crooii II. " 12.00 72 Merchandise Dr. $490.00 To Frothingham T invoice of this date. Merchandise Dr. §950.00 To W. & F. P. Ourrie & Co Bought of them as per invoice of this date. A. S. Page & Co.* Dr. To Mdse. To 5 hrs. Winters " 2 " West " 7 " Everett Drilling and Dressing Spiders, Mdse. Cr. by Sundries. fi on 80 2 80 10500 14554 16000 490 930 ^lorvlianiliiae, 178 CO 183 I CO • II. 8. Page & Co. are chirked for tliU work at the rate of $i per i&j (10 hours work), which ta considerably more than wc pay the Fame rann, but It must b3 remomberod that-we furniah the machinery, tools and other nooeB8arle«, and rare nnder heavy expense aside from men's wages. .NO. NA\ 1 John Dii 2 G. Abrai :! A. Wintc 1 Robert J ■5 Win. We r H. Danil 7 S. Post, 8 Warner 1 'J l^aac Ilii 10 Ooorge li 11 Samuel 1 181 TIME AND WAGES REGISTER OF THE DOMINION EOUNDKY, For the Week ending Sp- kHni 132 Weekly time and wages register. The following form is designod for paying men by the piece in weekly payment?, ami will answer to keep an account of work either done in tho manufactory or by parties at thbir own shops. By adopting the following plan one page answers for two weeks, and if opposite pagGS are taken they will answer for four weeks, and thus save the necessity of writing the names solViquently. No. TIME AND WAGES REGISTER OF THE DOMINION BOOT AND SHOE MANUFACTORY. 1 JiiDe 1, 188-.'. JuneW, 1882. f Name . 7 Quantity. Rate. Amniml:. Quantity. Rate. Amount. 9 10 James Amos, 5 prs. Boots, 2 10 11 John Bates, ■i <( tt 1 75 7 12 l;^ R. Corn, ■") it ti 1 75 8 75 14 L. Date, 3 « it 2 G 15 k; H. Evans, 4 (C tt 2 8 17 L. Favor, 6 it Shoes, 1 15 6 90 19 R. Goven, 5 tt li 1 75 8 75 20 S. Hand, 3 (( Boot--, 2 () 21 22 T. Irwin, 2 tc (< 2 4 23 P. Jones, 6 « Slipperp, 60 3 60 24 J. Words, 5 t( Boots, 2 15 10 75 25 26 79 75 Forward,* S 27 28 * The footing of each page may be forwanlod until the whole list of workmen are paid oil and then carrioil to tlie Cash Book In total. 133 S. G. BEATTY & CO.'S PAY ROLL FOR THE BAY OF QUINTEJMILL. For the month ending July Slst, 1882. We, the undersigned, do hereby severally acknowledge the receipt from Mcpgrs. S. G. Beatty Hi Co. of the sums opposite our respective names in full payment for work done in the above Mill to the above date : cessity 01 No. 1 ; Names. 1 1 Occupation. Millwright Wages rate per month. Days. Ani'nt Deduc- tion It em.-. »!$$ c. 10.3.5 50 Am'nt Net Ain'nt i Signatures. j ) SHOE John Armer $ 0. 78 25 $ c. 75 60 $ c. 18 50 $ c. 57 John Armor 2 i.fames Avert Foreman 65 25 62 8.2.4 50 14 50 47 50 Jas. Avert 3 J. W. Archer Blackisniith 52 25 50 10.4 14 36 J.W.Archer 4 S. W. Bull F. H. Burk Filer Gang 52 25 50 10. 10 10 40 S. W. Bull F. H. Burk 5 39 24 36 10. 26 6 S. R. Bones Gang 39 24 36 50 10. 10 26 S. R. Bones 7 T. Camp H. L. Cross Gang 39 23 34 50 34 50 Tho.x, Cunip H. L. Cross ? 8 o Gang 39 25 37 50 4.3.5. 12 25 50 Aincinni. 9 P. T. Chime Gang 39 25 37 50 6.2.2. 10 27 50 P. T. Chime 1 10 11 L. H. Davis T. R. Day Circular Setting 39 32 50 25 24 37 50 30 5.8.7. 10. 20 10 17 60 20 L. H. Davis T. R. Day 1-2 H. M. Dews Circular 32 50 23 28 75 10. 10 18 75 H. M. Dews 13 R. T. Evens Edger 32 50 25 31 25 10. 10 21 25 R. T. Evens 14 S. W. Forks Tailing 32 50 25 31 25 10. 10 21 25 S. W. Forks 15 A. B. Fife Sorting 32 SO 20 25 15. 15 10 A.B.Fife It; Clia.'^. Gover Sorting 32 50 25 31 25 4.1.5. 10 21 25 Cha.«. Gover 17 I>. L. Ham Engineer 62 00 25 50 3.7. 10 40 D. L. Hiim 1^ H. S. Horn Fireman 32 50 25 31 25 10. 10 2i 25 n. S. Horn l!l Jiiines Irvin Piling 32 50 20 25 10. 10 15 Jas. Irvin 20 James Jakes Piling 32 50 21 26 25 26 25 James Jakes 21 S. N. Long Piling 32 50 24 30 30 S. N. Long ' 22 H.P.Marvin Piling 32 50 24 30 10. 10 20 H. P. Marvin 1 23 W. B. Moon On boom 26 00 25 25 25 W. B. Moon 24 C. North On boom 26 00 25 25 4.2.4. 10 15 C. '«", North ' mark f Witness R. Ne.-^l.itt 25 David Port Teamster 32 60 20 25 0. 6 20 David Port ■ 1 26 Cx. H. Rover Yard 26 00 21 21 10. 10 11 0. H. Rover 1 27 Jno. Sokes Yard 26 00 23 23 10. 10 13 Jno. Sokes Jas. Wright trricil to tla> H 28 J. Wright Ent'd C.B. Fol. Yard 26 00 23 23 9fi8 50 10. 10 13 269 OU !99 50 ll 1 NOTF,.~The above for m of Pay Boll i» ifory convt nient, when hands are paid by the iiioi th, i>nd exteiiBivoly iisod by 1 ■ Dlillo wiiers. The forcma n keeps a Time B obk at the mill, a id at tlie c 11(1 (if the ni >nth nml Bs out a ' rime List which in !>. lent In to the head ofllce, and from which the above Pay Boll is made out. The Time List made out by the foreman il mtrely a lUt of the men'B names, rate per month, and the number of days they have worked. im' t!!!| 134 CHEESE FACTOKY MILK BOOK— NAMES OF PATRONS. .s are made to change their places in notation, their arrangement in respect to eacli other remaining the same ; i.e., $-4275 made to read 842750, or 8427.50. Third. — When two significant figures are made to change position both with respect to themselves and also the orders of notation; i.e., $14 made to read $0.41. To detect the first and second cases of transposition, DIVIDE the aaiount of the ERROR IN the TRIAL BALANCE SrCCESSIVELY BV 9, 99, 999, 9999. &C., SO FAR AS POSSI- BLE WITHOUT A REMAINDER. REJECTING ALL CIPHERS AT THE RIGHT OP THE LA.-:T SIOXI- FIC.^NT FIGURE I\ ERROR. The quotients that contain but one digit figure will express the difference between the two digit figures transposed, which will bo adjacent to each other if the divisor contained but one 9, separated by one other figure ; if it contained two 9s, by two other figures ; if it contained three 9s, by three other figures, and .«o on. These quotients which contain two or more figures will express the number itself, which is transposed in notation simply, the arrangement of the significant figures remainin7 the same. In either case the order of the last significant figure in the error will be the lowest order of the figures transposed. The orders of the other figures can be easily deter- mined by referring to the error and applying the principles of notation. To detect the third case, divide the error in the balance by as many 9s as is possible, FO as to give only a single figure in the quotient, and then the remainder in the same way, rejecting all ciphers at the right of the last significant figure in both dividends, after which there should be no remainder. The first quotient will be the figure filling both the highest and lowest order in the transposition ; the second quotient will be the other figure. Note — If the error of the trial balance be not divisible by 9 it cannot bo the result of transposition alone. But whenever tlie error becomes so reduced as to be divis'ble by 9 without a remainder, a trausposition being then possible, the above tests should be given. [••An i.u' T 136 ON THE CORRECTION OP ERRORS. In correcting errors in the regular books, it is not suflScient to make matters come ont right by writing " To error " or " By error," as you are directed to do in the old school treatises. You must make the correction explain itself by a distinct reference to where the error exists, and at the place where the error is made note the date and place of correction, Thus, if you have journalized any entry wrongly, and have discovered it before posting write on the margin of the entry, " Void, corrected Page — ," and preface your new entry with " To rectify error page — ." For obvious reasons there are very strong objec- tions to erasing either figures or writing on any book of original entry ; but if a post be made to a wrong account or to the wrong side of an account in the Ledger, if the account is not iViOied, the re can be no great objection to erasing the figures in the money column and replac-in.'.' ..hem with siphers, allowing the date audfother words of the entry to remain. Let the amount then be correctly posted. Norman of taste ever thinks of scoring oat entries in his Ledger for the purpose of rectify ing^them, or for any other purpose. CEOSS ENTEIES. Cross entries are made for the purpose of rectifying mistakes. Where there is a " snarl " or complication in an account, caused by several mistakes, it is usually necessary to make several cross entries to " straighten " it. We give below examples of simple cross entries. If Wm. Green purchased goods on credit, and by mistake in Journalizing or posting you" charged them to Jas. Brown, the cross entry in the Journal to rectify the error ■would be : Wm, Green, Dr. To Jas. Broicn. For Goods charged the latter in error, Sept. 29th. Again, supposing that when Journalizing the entries of the IV. Set you had made the following errors and posted them to the Ledger : on the 8th credited Bills Eeceivable with both the amount of Jones' note and interest, 8296.62 ; on the 16th charged UilU Payable with both the amount of Jakes & Hayes' note and interest, $1919.00 ; to rectify them you would make the following cross entries ; For that on the 8th, Bills Receivable Dr. 1.62 To Interest, 1.62 For error in crediting B. R. with an item of interest, April 8th. For those on the 9 th and 16th, Interest Dr. 19.00 To Bills Payable, 19.00 For error in charging B. P. $19.00 Interest on April 16th. Remember that Bills Payable account is never charged with more in connection with any bill than it was credited with, and Bills Receivable account is never credited in con- nection with any biil with nijre than it was charged with. Interest for or against must be put through Interest Account. 137 DEALINGS WITH BANKS. Banks greatly promote and facilitate the business interests of a community, tncy are useful as places for the safe-keeping of money, they collect and discount notes and drafts, and they afford facilities which greatly reduce the labor of business. An account may be opened with a bank by calling upon the Manager. Evidence as to integrity or reliability of character on the part of a stranger is required. If that is satis- factory, he will be requestad to write his name in the signature-book in the style in which his checks will be signed. If the account is opened in the name of a firm, the signature of the firm is written by each member, and his own name opposite. This is for the purposeof. coinpfirison, should a check with a doubtful signature be presented. The necessary blanks and books for keeping a bank account are furnished by the bank. The Deposit Slips are filled up by the depositor, who, in addition to writing his name and the date, specifies the particular kind of funds deposited, according to the printed divisions of the Slip, and also, writes the total amount deposited. The Slip should be handed in to the Teller along with the money deposited. These Slips enable the Teller not only to see at once if the money, as counted by him, agrees with the depositor's statement, but also to recall the transactions of the day if necessary, in case of an error. BANK PASS BOOK. The entries made in the Bank Pass Book by the Teller are the depositor's vouchers for all sums left with the bank, and therefore nothing should be written in this book by the depositor himself. When a note is left for collectipn, the Bank Pass Book ishanded with a Note to the Teller, and a memorandum is made by him, but the amount ia not placed in the money column until the note is collected. Notes that have been discounted and ordered to be placed to the credit of the depositor are entered in ''le Ba^^k Pass Book, less the discountj to his credit, the same as a note that has been colKcted. CHECK BOOK. The Check Book contains blank Checks, with a margin or stub for a description of the Checks as they are filled. The account with the bank is sometimes kept in this book, on the back of the margins from which Checks have been taken, as shown in the Form of Bank Account giveu in a subsequent part of the work, the difference between the total amount deposited and that withdrawn showing the balance in bank. At certain intervals, depiiuding upon the extent of the business transacted, the Bank Pass Book should be left at the bank that it may be balanced. The amount of the Checks that have been drawn are entered at these timss; and when the Bank Pass Book is returned, it should agree with the account kept by the dealer, if all Checks issued have been paid. No account with the bank need necessarily be kept in the Ledger, the balance being counted as .so much Cash in hand, as it is subject to order at any time, and such account can contain nothing which may not be shown in the Check Book. There are two methods for keeping the account with the bank in the Check Book adopted by business houses: That on page 140. in which the sums are added as soon as deposited, and the amounts of the Checks are subtracted as they are drawn, which is best when the business is limited. According to the other system, the deposits are entered as they are made, but are only added when the account is balanced, which is done by adding the amounts of Checks drawn since the last balancing and taking the sum from the total deposited. This method is adopted in large house whose deposits and Checks are numerous. ' CtJOGESTlONS TO DEPOSITORS. — A Chock drawn payable to a person, " or bearer^" ia / /, 138 transferable without indorsement, and unless there is good reason for withholding the money, the Cheek is payable to any one who may present it. A Check drawn payable to a person, " or order," must be indorsed by the person iu whose favor it is drawn, before the bank will pay it. Checks drawn in this form are safer for holding and for making remittances, as tliey cannot be used until indorsed by the proper person. When so indorsed, and held by the bank or drawer, they are evidences of payment, and are therefore often used as receipts. The payment of a Check may be countermanded by the drawer of it any time before it is paid by the bank. A Check given by the drawer is not absolute payment ; and if there are no funds in the bank at the time it is given, with which to meet it, it can be returned, and the Cash demanded. If a Check is held beyond a reasonable time, and the bank or drawer should fail before it is presented, the holder must bear the loss. It must be presented in a reasonable time after it was received, or the holder retains it at his own risk. Every holder is liable to every Bubsecjutnt holder cnly for a reasonable time. The in r per- d should pay particular attention to the following suggestions : Make your deposit as early in the day as convenient. Use the deposit Slips furnished by the bank, and do not make deposits without your Bank Pa.~n Cook, All Checks dopotitcd (that are not certified) must be indorsed by the depositor, whether drawn payable to " bearer " or " order.'' To prevent their being used by other parties, stamp or write on all Checks sent for depcsit the words " For Deposit " over your indorsement. SuGGESTlotfs FOR Dkawing Checks. — Avoid as much as possible giving Checks to strangers, and make it an invariable rule to give Checks only out of your own Check Eook ; and when not in use keep it under lock and key. When giving a Check, write the particu- lar.« (always) on the stub fir.st. Numberyour Checks consecutively, and always date theiii. If you desire a Check to be a definite receipt draw it to the person or order, and state under the written amount what it is inpayment of; as the Check, when drawn thus, cannot be cashed without the person's indorsation, his signature will be an acknowledgment that he received the money, and of what it was received for. Blank checks have usu illy the woill "bearer" printed; run your pen through the word, and write "order" over it. Write youi signature with your usual freedom, and always in the same style. At least once a month, and as frequently as occasion may require, send your Bunk Pass Book to the Ledger keeper, that it may bo balanced ; and, as soon as returned, eheek it withyour own account. Deface the signatures of cancelled Checks^ arrange them accordiug to tlieir numbers, and place them in sai'e keeping, where they can be easily referred to. Care should be taken in filling a Cheek to do it in such a manner that alterations caniiot easily be made. Payment by the bank of a forged Check, if the forgery can be provtn. will be the loss of the bank; but if the Check is filled so negligently as to invite or facilitate forgery, any loss that occurs will fall on the drawer. The amount of a Check should always be written out in words, and should also be placed in figures in one corner of the Check (care being taken to begin on the extreme left, and fill any space unused on the right by ruling), as a precaution against alterations, and that the sum may be readily seen when counting. Should the mistake occur of writing the sum in figures difiercnt from that expressed in words, the latter is taken as the sum of the Check. A Check that is intended to be paid in the future should be dated the day it i*- ;;lven, 139 and should state in the body of the Check the day when it is to be paid. If dated in the future, circumstances may arise before the time of its date that will render it A'oitl. A Check is certified or marked " good " by an officer of the bank, and the bank there- by becomes responsible for its payment, thus making it more reliable for third parties. Certified Checks are chiefly used to avoid the risk and inconvenience of counting and carrying large sums of money that are to be immediately paid to others. When any blanks are needed to supply duplicate Cliecks, mention in the margin the purpose for which they are used, and take them from the back of the Check book. Avoid drawing numerous small Clieeks. When you have several sums to pay draw one Check for the whole, and ask the Teller for such denominations as will enable you to distribute the amounts among those for whom the money is intended. Checks are a convenient method by which to remit money to a distance. In order that your Clieck may realize the amount you desire the party to receivcf you must add the com- mission, which is generally rf per cent. For example, when remitting $100 you must make the Check for 8100.25. For some customers banks will mark Checks for remittance • payable at par." Certificates of Deposit are given by banks to those who deposit a special amount for temporary safe-keeping. They may be drawn to the order of the depositor or to any other person whom he may designate. Bank Drafts aud Bills of Exchange for making remittances can be obtained from the manairer or officials of the bank. Notes and Bills for collection should be sent to the bank a few days before they become due, in order to give the bank-clerk ample time to make the proper records and send notices t) the payers. A Check that is drawn on a different bank from that in which the Note is left for collection, unless certified, will not be received in payment for a Note in bank. Notes taken to a bank to be discounted are presented to the Manager, who decides whether they shall be discounted or not. In general, those Notes that are not within three months of maturity are not discounted : and there must be at least one name on the Note besides the maker, either as drawer or indorser. As a rule, banks discount only for depositors, aud tliere must be satisfactory security that the Notes discounted will be paid when due. In order to get a Note discounted at a bank it must be properly indorsed, and the resi- di'iice of the payer should be written on the Note. It is well to offer Notes at an early day that other sources may be applied to in ca.se the Notes are refused by the bank. The chances for discount will usually depend upon the average amount kept on deposit, the reliability and staoding of the names on the Notes that are offered, and the state of the money market. Do not attempt to overdraw your account and do not offer for discount Notes that are not likely to be punctually paid at maturity ; and should any that have been discounted be protested and returned to you, for your own credit pay them immediately. In case a draft or customer's Note is handed in to the bank for collection, and you entertain doubts of its being paid at maturity, and do not wish the extra cost of prot»•*•, ••A m 140 DEPOSIT SLIP. Montreal, Jm*. 2nd, 1885. Credit James Smith with $1800. Deposited by Self. 15 X 1 = 2 = •25 X 4 = 55 X 5 = 40 X 1(1 = 20 X 20 = Gold Silver ■ Checks $ 15 100 275 400 400 $1190 ... fiO 550 $1800 ANOTHER rOBU. DEPOSITED AT THE Belleville, Jan. 3rd, 1885. By Chs. Anderson Nails at 10c PASSE.VaKIlS FnoM Daymond, v Discharged June 2nrf.— Paid J Bill of Lading No 40 Cast Iron PlSSE.NOKHS FKOM Brown and Bill of Lading ^ 275 boxes S Delivered to agent charged to t Passenoers from for Montret Cornwall. Bill of Laih.ng N( "J. G. M. & Received Pa.sskn( daughters, 1 ^«He-41 2 Gan 1( II Brot 4( 11 Cor ♦ The berths ne leave the stadent to 143 June l»^— Paid Downey* Pope for 20 tons Coal, at $5.r)0, $110; II. Price, for Proviiiona, $100 ; John Qraiuger, tor Meat, §20.50 ; A. lleiiry, for Ice, $ti.&0 ; Henry Blair, 8 curds ot Wood, at §6, $48. Received the following goods : — Kiu OK Ladinu No. 1.— From Victoria Foundry, Belleville, to William Watson A Co., Coruwall, marked " W. W. & Co., C," 50 Exci^lsior Coal Stoves at $2. Hia OF Ladino No. 2. — From George WiillbridKC, Belleville, to Jones k Smith, Krockville, irarked "J. & S., B.," 100 bbla. Pork at 50c., 40 casks liacoii at OOc., ID bo.xcs Hiiiidrip.>) at 40u. Bill of Ladinu No. 3. — From Foster, Barber k lirignall, Belleville, to Ju^epli McKay r Miinth 100 75 50 40 70 40 30 30 30 30 25 20 20 20 20 10 12 12 10 Ani'nt. ^10 7 5 4 7 4 3 3 3 2 2 2 2 2 2 1 1 I 1 Total wages this trip, 1|63 40 Amount paid this trip, 50 50 Pali 50 45 90 Romarki. Paid and Discliarf^eii. Discharged. Ent'd C. B., F. 147. PASSAGE BOOK, STEAMER "CITY OF THE BAV TRIP I.— FROM BELLEVILLE TO MONTREAL. June Ul, 1885. Namea of Passengers. Embarkation, Destination, No. 1 Berth Fare. Amount. Wm. Junes, Belleville, Picton, 4 1 00 $1 nn 8. G. Heatty, II Montreal, 1 8 4 50 4 50 F. Hart and wife, II Brockville, 2 6 3 50 7 00 Miss Ida Hart, 4 149 (1 II V <( (1 V 150 149 149 149 'Disbursements. Steamer, Paid on her ncct.. SroniD AccT. Supplies at B«lleville, E.XPENSK, Toll passing Canals, Wages, As per Hands Register, FuBL, As per Fuel Book, Wages Dr. to Cash, Fuel " " " Stores " " " ToUl to Cr. of " Balance, Wages. 45 90 45 90 Fuel. 288 288 1 j Stores. 1 Sundries. 127 2000O 7 48 288 127 50 90 127 20468 1926 40 22394 40,. fr^ *< w, {'■im 148 JOURNAL. TRIP IsT.-FROM BELLEVILLE TO MONTREAL, JUNE 1st, 1886. 148 Steamer " City of the Bay," Dr. 149 To Bills Payable, Gave our notes in part payment of the vessel. 2 149 149 150 148 148 G. Webber, Dr. To Frsigbt, Freight unpaid per Freight Book. 4 Wages Acct. Dr. To G. H. Pope, " J. W. Johnson, Proprietors' salaries unpaid. Dr. 1885 June 4 To Balance, LEDGER. GEO. H. POPE. 11028 25 1 1885 June u II 1 4 4 $11028 25 15000 15000 -8 78 17 50 10 7 50 15095 50 15095 60 Cr. By Cash, C.B., Wages, Loss and Gain By Balance, J. W. JOHNSON. $11028 25- To June 2 To I Tol June 4 To 1 June To Balance, By Cash, C.B., " Wages, " Logs and Gain, 146 10750 148 7 150 218 109V5 By Balance, STEAMEE " CITY OF THE BAY." June *'■ »<:■ 150 Dr. WAGES ACCOUNT. Cr. ^885 June To Cash, O.B., " Sundries, 147 148 $45 17 63 40 1885 Juue By Expense, 63 40 LOSS & GAIN. June To Rxpense, " O. II. Pope, " J. W. Johnson, 149 148 148 485 218 2)8 922 90 25 25 40 June (I 4 Bv Passnge acct., 4 " Freight " EXPLANATION. It will be observed that there is no necessity for a Day Book, and that the Journal is ©nly used to record such transactions as cannot be entered in the auxiliaries. Before posting the 0. B. the money received for freights and passages are transferred from the Freight and Passage Books to the Dr. side of the C. B. , and the amounts for fuel and wages from the Fuel Book, and Hands Eegister to the Cr. side. In a regular business the hands would in all probability be paid monthly, and would no doubt occasionally require small sums of money, through the month, to defray their expenses. la such case a special column might be kept in the C. B., in which items paid to hands eould b') charged. We have not space in a work like this to continue the transactions for a whole month, and consequently close the books on reaching Montreal, in order to fully illustrate the Set. We will now give manuscript for the return trip to be worked out in the same stylo. The balances may be brought down as is done with the Real accounts, «ud the return trip posted in the same Ledger accounts. MEMORANDUM, STEAMER "CITY OF THE BAY." TRIP 1.— FROM MONTREAL TO BELLEVILLE, JUNE 5th, 1886. Engaged P. Graham, as Porter, at $12 per month, and J. Reynolds, as fireman, at $30, services to com- inonce to-day. Paid A. Emerson, for 10 tons Goal, at $(j ; 12 cord:j of Wood, at $5.50 ; A. F. Wood, for Provi3ion3, $i5 : R. G. Forbv'S, for Meat, $8.75. Paid for repairs, $4. Biia OK Lading No. 10. — From Alex. Buntin & Co., Montreal, to E. Harrison, Belleville, marked " E. H., I?.," 10 boxes Stationery, 2425 lbs., at 20c. per cwt. Bill r-p L .ding No. 11.— From Frothingham & Workman, Montreal, to Lewis & Price, Belleville, ^^.-ked " L. ♦•*'! ')iir !f 11 152 MUNICIPAL ACCOUNTS. Municipal book-keeping differs only in form and detail from ordinary mercantile methods of double entry. As Municipal Treasurers occupy positions of public trust, and as thft credit of a municipality is an exceedingly sensitive thing, requiring honesty and competence in those who administer the affairs of a corporation, it is exceedingly desirous that muni- cipal books shiiuld be kept in a manner at once clear, concise, and comprehensive, in order that the taxpayer or the debenture creditor may at any time inform himself " from the books " of the financial condition, and verify the .statements of the auditors. If it is incumbent upon a merchant, who is a private individual, to keep his books after a method and in such a manner as will inspire confidence in his creditors, how much greater is the necessity that municipal corporations, which are continually borrowing, should have their affairs managed by a well-defined and thoroughly understood system. The absence of this produces confusion and mystifies the true state of affairs, inducing fraud and peculation, and lowers ihe municipality's credit in the money market, so that it is difficult to dispo!k3 or forms which peculiar circumstances may demand. The method of dealing with the Collector is an oxtrenioly important consideration iu municipal matters, for, upon the prompt collection of taxes and the nole-ia prompt handing over by the Collector to the Treasurer of the money, depends the satisfactory running of the municipal machine in accordance with the estimates. If the collector be allowed to retain the money in his possession, and at his convenience pay over to the Treasurer such sums as he may choose, it is quite apparent that au opportunity for other than honest dealin;.^ is afforded. It is desirable that EACH day the Collector should pay over to the Treasurer all sums of money collccttid by him, exhibiting at the same time in a book kept by him for the purpose, or from .stubs of his receipt book, the names of the parties from whom it has been receivi^d and the amounts, which should be checked by the Treasurer and a receipt given, in the book, for each day's collection?. This course will obviate the necessity of opening an account with the Collector in the Ledger, a plan which, although pursued in some places, is not adopted in our principal cities, for reasons given in the explanations at the close of the Set. At the close of each year the Collector should be required to make an interim return of taxes remaining uncollected at that time and for that year, the total amount of which, and the money paid over, would exactly tally with the tax rolls ; then, after the lapse of considerable time, w! 3n it is not possible to collect any more of that year's taxes, he should make out a final return and be relieved of further responsibility. Having so much premised for your general information, you will now proceed to open the set by journalizing the assets and liabilities. (_, .Balance, To Balance, 45984 | 2U SINKING FUND No. 1. To City of Ont, act 156 15300 00 RENTS RECEIVABLE. To City of Ont. act " Revenue acct.. 156 160 274 5853 50 00 $6127 50 Jan. Feb. By Cash acct., 11 •( Cr. 156 160 $174440 28698 203145 1 1 "l8i4o rr 157 159 15R9« I 40 87428 I 50 513 28 103840 27 157 Mi 8891 9395 85 159 1050 55950 57000 00 00 00 45984 20 45984 20 157 159 627 5500 $6127 50 00 50 Dr. Jaa, Jan Jan. Feb. Jan,| To Cash Feb. Bale m Dr. Jau. JaD. Jan. To City of Oat. act 165 NON-EESIDEXT TAXES. Cr. To City of Ont. act >' Asaessmeut acct To Balance, 15G 158 897 640 _$1537 "T03f 00 00 "00 1876 Feb. By Cash acct., Balaace, 159 #450 1087 00 00 1537 00 TAXES, 1875. To City of Ont. act To Balance, 156 25329 00 Jan. Feb. 25T29 Oil l^asi) 35 By Cash acct., Balance, 157 159 14339 10000 989 65 00 35 25329 > 00 . SINKING Fl'ND, No. 2. 156 30000 00 DEBENTURES. Jan, By City of Ont. act i> It l; " Bonus acct., 156 30000 158 100000 158 10000 BILLS PAYABLE. 'Jan, 3y City of Ont. act 156 20000 COUNTY OF WINDSOR. Jan, Feb. To Cash acct., Balance, 157 159 3000 22000 100.0 Ou ! 00 i 00 ijttn. ^SE S. By City of Ont. act By Balance, 15G 35000 00 35000 00 §.35000 00 1 LICEI loouo |0i Feb, To Rerenue act., 160 11255 00 'jan. Feb. Br Cash acct., 11 11 11 157 159 555 1 10700 00 Ou $11255 00 :$1125,-> 00 "J i *>>■ km tm 11 iSi '^ (3: mJ'l''Mp; •nil If ?!te ^ ^ m M >hb.^:iy Dr. INDIGENT. Cn I87e Jan . ;(o Cash acct., 167 1876 103 74 Feb. INTEREST. By Revenue acct., 160 103 74 Jhd. Feb. To Cash acct., il CI 11 157 159 350 8750 00 00 Feb. By Revenue acct., 160 9100 «0 $9100 00 9100 00 4 STREETS. Jau. F.!b. To Cash acct., 157 159 2403 10900 10 00 Feb. By Revenue acct., 160 13303 Id 13303 10 13303 10 FIRE DEPARTMENT. Jan. Feb. To Cash acct., 11 11 1. 157 159 282 3420 95 00 1*5 Feb. By Revenue acct.. 160 3702 3702 95 $3702 95 TP lOS. McNAUGI ITON (City Clerk). Jan. Feb. To Cash acct., 11 .1 II 45 955 00 00 Feb. By Salaries acct., 160 1000 00 Sinoo ' 00 1000 00 E LECTION EXPENSE. Jan. 1 To Cash acct., 157 409 00 Feb. / By Revenue acct.. 160 409 00 E. E OBINSON (City Treasurer). Jan. To Cnsb acct,, 11 11 11 157 100 900 00 00 Feb. By Salaries acct., 160 1000 00 $1000 _00 1000 00 Dr. 1'876| J»D, iToCt Feb. I " ' Jan. Jan. Jan. Feb, Feb. Jail, Feb. Dr. 1876 Jtn, Feb. Jan. Jan. Jan. Feb, Feb. Jan. Feb. 167 CONTINGENT Cr. To Cash acct., II II II 157 159 25 9429 S9454 00 1876 Feb. By ReTenae acct., FUEL. To Cash .tc( ' , Feb. By Revenue acct., 160 TAXES, 1876. To AsieeBment act. To Balance, 158 Jan. Feb. $19429 I 93 ASSESSMENT By Aasessnient act. " Cash acct., Balance, 158 159 To Sundries, " Revenue acct., 158 IGO Jan By Sundries, 158 81923 PI 923 93 93 PUBLIC SCHOOLS. To Cash acct., 159 Jan. By Assessment act. 158 BONUS. To Debenture acct, 158 10000 00 Jan. By City of Ont. Rct 159 POLICE COURT. To Revenue acct.. 160 Feb. By Cash acct.. w 'i *» m iH M 1 ' '* 168 Ih. CLERGY RESERVE. Ct. J87G feb. To Revenue acct., 160 600 00 1876 Feb. By Cash acct., 159 S600 01) GRAVEL ROAD. Feb. To Revenue acct., 160 73 62 Feb. By Cash acct., 159 73 62 FRONTAGE. Feb. To Revenue acct., 160 Feb. By Cash acct.. DOMINION GOVERNMENT. 159 250 00 leb. To Revenue acct., 160 430 00 Feb. By Cash acct.. 159 430 00 MARKET BUILDINGS. Feb. To Cash acct., 169 Feb. By Revenue acct., 160 720 00 CITY HALL. Feb. To Cash acct,. 159 Feb. By Revenue acct.. 160 1700 00 MARKET SQUARE. Feb. To Cash acct.. 159 850 00 Feb. By Revenue acct.. 160 850 00 Dr. 187ti Feb. Feb. Feb. 169 MARKET No. 2. Cr. To Cash acct., 159 00 187G Feb. By Revenue acct., 160 SIH 00 INSURANCE. To Cash acct., 159 Feb. By Revenue acct.. 160 600 00 POLICE DEPARTMENT. To Cash acct., 159 8540 00 Feb, By Revenue acct.. IGO 8540 04 LIGHTING STREETS. m: wmmH Feb. To Cash acct.. 159 2129 00 Feb. lES By Revenue acct., 1 IGO 2129 00 SALAR - Feb. To Cash acct., " Sun~dries, 159 160 2480 2000 00 00 Feb. By Revenue acct.. 160 4480 00 $4480 00 4480 00 PUBLIC PARK. Feb. Feb. To Cash acct., 159 329 00 Feb. By Revenue acct., 160 329 00 PRINTING AND STATIONERY. To Cash acct.. 159 Feb. REVENUE. By Revenue acct.. 160 928 50 Feb. To Siindr-'es, " C'yofOnt. act. IGO 160 5G592 28698 79 76 55 Feb. By Suudi'ies, 160 85291 56 $85291 85291 55 M. ».- V 170 •TRIAL BALANCE. Fol. Account. Dr. Cr. 164 Gitv o£ Ontario. t20553 513 8891 55950 45984 15300 1087 989 30000 103 9100 13303 3702 409 9454' 195 19429 720 1700 850 48 600 8540 2129 4480 32 928 65 28 35 00 20 00 00 35 00 74 00 10 95 00 00 50 93 00 00 00 00 00 00 00 0.> 00 50 $5853 140000 20000 10000 11255 65869 900 600 73 250 430 1G4 Cash , 164 \M Real EBtate, ir>4 Pronertv. 164 Sinkinsr Fund No. 1 164 RuntH Receivable. 00 Ifift Non-resident Taxes, 165 Taxes. 1875. 165 SinkinE Fund No. 2 165 Dcbonturfi hccount. 00 165 Bills Payable 00 16ft Countv of Windsor. ......... 00 165 TjirensGB account 00 166 Indiefent account. 166 166 Streets. 166 Fire Denartment. . .. . 166 KIcctiou ExnensGB. ..... . . • 167 Contingent account, 167 Fuel account. 167 Tuxes. 1876 167 AsKpRRmfiTit account - 93 167 Policp Court 00 168 Clererv Reserve. 00 168 Gravel road, fi2 168 Frontaure. 00 168 Dominion Government, 00 168 Market Buildings, 168 City Hall, 168 Market So uare. *.. 169 Market No. 2. 169 Tnfiurancp. 169 Police Denartment. 169 169 SiilariPR ' ■ 169 Piihlio Park 169 Printine' and Stationery • 88255291 55 $255291 5.) * This Trial Balance exhibits the balances of the accounts, u«t the footings. Ledger Folio. 1 1(:4 Ca.'ib, lt)4 Molson 1(;4 Real E. UU Properl 1(14 Sinking. h;5 Non-Re lil.j Taxe.-, lii.O Sinking l(i7 TaxGH, Owing to kind curtailme press into two i however, ordini be in a positioi sums for the ba represente our given in the fir The moth( caroful attiatio Lid,'er a Tax As.su.ssors have and money is .b credit. Afterv and these, prop remission book lioate of correct the Assessment are not appoioi ment entry is aucount being c the form presc taxes for the y< amount outstai return mention The Tax accou taxes on the ro probably after The blanl abstract, the a which it ought 171 ASSETS AND LIABILITIES. STATEMENT, Lwlger Ledirer Folio. Fo io. ASHCIS. Lial)ilitic8. 1(U Cash, 51.3 28 1G5 Debenture.", 140000 00 lt>4 Molnon.'^ Bank, 8H!»1 35 105 liillH I'ayahle, 20000 00 lii4 Keal Estate, 55'J.JO 00 105 County of Windsor, 10000 00 IW Pro|ierty, 459-<4 20 104 City of Ontario, being 1(14 Siiikini; Fund, No. 1, 15;i00 00 balance sbowinjj r.inount of assets over liabilities. i.;5 Noii-ReH. Taxen, 1087 00 8146 II Itl.j Taxes, 1875, 98!) 35 ft ]ti5 Sinking Fund, No. 2, .30000 00 107 Taxes, I87t), 19421) 9.3 • $178145 11 $178145 11 EXPLANATORY NOTES, Owing to the limited space which auy cue wet of books may occupy in a work of this kiad curtailment is of cour.^e a necessity, and hence we have been obliged to com- pre.s3 into two months what ordinarily would be spread over a year. In the first month, however, ordinary receipts and expenditures are recorded, but in the second, in order to be in a position to instruct you how to close the books, ai the end of a year, aggregate sums for the balance of the year are entered : for the months which these aggregate sums represente our entries would be similar to, and made after the manner of, the examples given in the first month. The muthod of making the assessment entry is important, and should receive your careful .attention. It is desirable, as you will presently see, that there should ha, in the Lid, 'era Tax account for each year; the propar time for opening it being when the A.s,s(jssors have completed their work, and the Assessment Rolls are in the Collector's hands, uid money is.bjiug paid on its account, the sums so received being of course passed to its credit. Afterwards, when the Court of Revision has made all remissions and deduction,s, and these, properly certified by the Auditors, have been ascertained from the City Clerk's remi,ssion book, and the Rolls have been handed to you by the Auditors with their certi- iioate of correctness, you will be in possession of the data from which to accurately make the Assessment entry, in the manner shown on page 158. As Auditors for any past year are not appointed till the first meeting of the Council of the succeeding year, your assess- ment entry is necessarily delayed till Doeomber, hence the necessity of the year's tax aeciiunt being opened before then. Vou will see that in making the assessment entry in the form prescribed, you show' accurately each year's revenue within the year. All the taxes for the year will not have been collected at the time you make the entry, but the amount outstanding is shown by the balance (corresponding with the Collector's interim return mentioned before) at the Tax account's debit when you close the books for the year. The Tax account for any one year should be kept open just so long as there are unpaid taxes on the roll likely to be collected. When it becomes impossible to collect any more, probably after the lapse of a few years, it should be closed into City of Ontario account. The blank form given in the assessment entry, page 158, is u.sed to show, in abstract, the amounts of the various taxes on the Assessment Rolls, with the totals of which it ought of course to correspond. (■u- Ni'K^ •^f » II; »'>|l \H p»> ml ^L m 172 If you will coDHiderthe asseiRmont entry, the forcgnlDg explanationii, and what \nm,()(((), of the liability to the County of Windsor ; an addition to the bank deposit of over $8,400, a few other minor reductions of liabilities, and per contra the payment of a 810,000 bonus and a few minor reductions in the assets. We may remark that the as.sets shown on the books fif a municipal corporation are, to a larire extent, nominal. Its ability to pay its liabilities is not reckoned by what the corporation (if the city may own, but by the value of the city's whole assessable property. You will understand this after a few moments' thoui:;ht. For instance, the cost of a brid;_'e is ahowii on the books to be $10,000. That brid.s;e is nominally worthless so far as itN saleable Talue is concerned, but it is a tiling of value U) the corporation, and is therefore regarded a,s an »sset, and its cost stands at the (hjbit of an account from year to year. It mi^htbe desirable, howevur, to write off a certain percentai,'e of this account yearly, »s the bridge becomes worn and usL'k\ss ; ci rtainly in ordinary business this principle should be carried out, Loss and (iain being made debtor yearly to the acojunt for the ci-tiuiated depreciation. Durinf^ the year you are supposed to have kept all papers, warrants, checks, and Touchars, in a neat and convenient form f)r reference, the warrants, checks, and vouchers being consecutively numbered, and on the appointment of the auditors you are prepared to submit your work for their examination ; exhibitin>i' with your Ledger the Trial Balance and Asset and Liability statement in the forms given on ])age8 170 and 171. Their duty, of course, will be to first check your work, and afterwards prepare in detail an abstract; from your books showing the year's receipts and expenditures, and also the items compos- ing the several asset and liability accounts, and to make any suggestion or recommendatiou that may seem desirable. PRIVATE LEDGER. All judicious merchants are aware of the importance of avoiding needless exposure of their aflPairs. This in some establishments is unavoidable where the partners' accounts and the results of the business are all exhibited on the same Ledger. In order to avoid this inconvenience a Ledger, with clasp and lock, may h.: Icpt for accounts that are to be kept private. The keeping of these accounts in a separate i^iok entails no additional trouble, as they are dealt with as though they were in the General Ledger. Some mer- chants, who adopt the plan of keeping a Private Ledger, also make the opening entry of the business upon a Private Journal. We have not deemed it necessary to give au illustration of this Ledger, as the mode of keeping it will be apparent to any person who understands the science of accounts. We may mention, however, that the accounts usually kept in it are Merchandise, Loss and Gain, and the Proprietors'. "f. Hi ■ I r- m m III' ,'[^u 't:i> 174 BOOKS AS EVIDENCE IN COUET. Books of Original Entries are the only onos admitted as evidence in Courts of Justice. For proving many transactions there ia no written signature nor testimony of wit- nesses, and the entries in the books are the only vouchers for millions of dollars. The law has laid down certain rules in rej>;ard to them which should be universally known, as debts are frequently lost fi'om some defect of entry which might have been saved had they been recoraed in a proper manner. A book of OaiQiNAL Entries is evidence of the s.\le and delivery of goods and flf work done. The book, however, may be set side on suflScient proof of incorrectness. It must be proved by the affidavit or oral evidence of the person who made the entries, or if such person be dead or cannot be reached, proof of death or absence, or of the hand- writing, is sufficient. To entitle a person's } ooks to be received as evidence in Court the following facts must be proved, viz. : Ist. By whom the f ntries were made. 2nd. That the ^book.:; produced are his account books, ana come from the proper custody. 3rd. That some of the articles charged have been delivered. 4th. That he keeps fair and honest accounts, and this he must show by those who have dealt and settled with him. If the entries in a book were made by a clerk, and he be dead, on showing that fact, and proving his handwriting, and that he was a clerk of the party, such entries would be received as evidence. Or, if yo\ iup; Journal en The entri and retired by Or, ifyo charging back iave the gam( Brown renews note for $5C cash, and giv of the old ou( ENTRIES FOR RENEWALS OF NOTES. Suppose M. MacCormick & Co., of Belleville, have a note for 8200, in favor of McLachan Bros. & Co., of Montreal, coming due at the Merchants' Bank in Montreal four days hence, which they cannot meet, they request the house to retire it, a,nd renew, aay tiir three months ; the request is granted, and the first or second day after the maturity of th -■ note they receive the following statement : (The Usual Heading.) '. 1879. ^ . • Jan. 25,— To Cash to retire your note, $200.00 " Interest on renewal tor three niontlis and Bank Conim. 5. OH Cr. By Draft at three months, McLachlan Bros. & Co. Your journal entries for alwve will he ; Bills Payable, Dr. Interest, •* $205.09 $205.09 $200.00 5.09 To McLachlan Bros. & Co., $205 09 For B. P. No. ' !, retireii bv 'hem, and renewed for three months, as per st'nit. McLachlan Bro^ & Co, Dr. $205.09 To Bills Payable. $205.09 JPor their Draft at three months t'i'om Jan. 25, m renewal of B. P., No. 58., Brown renews note for $60( being half tii renewal, and the amount o Where a that case the t * If the not« ♦ M. MacCormi Montreal It were a»T fi'iir days be( written perinissior pi^alile), and obta and credit McLat ronewal. At the u Or, if you don't desire to put the transaction through the personal account, thefollow- iu|; Journal entry will have the same effect, and be much shorter : Bills Payable, Dr. Interest, To Bills Payable $200.00 5.09 f205.09 The entries of the firm that renewed the note would he, if the note were under disicount and retired by Check : M. MacCormick & Co., Dr. . «205.09 » To Bank, $L>OO.W " Interest, 5.09 For their Note due tliis day (B. R., No. 120) retired by Check, No. 170, reneweil i'or tluee moiitliK. Bills Receivable, Dr. $205.09 To M. MacConnick & Co. $20.5.09 For Draft at three montiis in n-newiil ol B. R., No. 120. Or, if you don't .desire to put the transaction through the personal account (after cluirginc; back the note to Bills Eec. and crediting Bank), the following Journal entry will liave the ?ame effect, and be much shorter : Bills Receivable, Dr. $205.09 To Bills Receivable, . $200.00 " Interest, 5.09 PAIITIAL RENEWALS. Brown renews for you half the amount of^ u note for $500, due to-day. You pay j;250 cash, and give anew note for half the aniouiii of the old one and interest on renewal, $3.50. Brown renews for you half the amount of a note for $600 due to-day. You pay $;J0.3.00, being half tiie amount, plus the interest on renewal, and you give a new note for hali: the amount of the old one. 1. Yoi'u Entry. Bills Payable Dr. §500.00 Interest, 3.50 To Cash. $2.00.00 " Bills Payable, 253.50 2. His Entry. Bills Receivable Dr. $253.50 Cash " 250.00 To Bills Receivable, $500.00 " Interest, 3.50 3. $600.00 3.00 303.00 300.00 Your Entry. Bills Payable D; Interest. " To Cash " Bills Payable, His Entry. ' l'>ills Receivaole Dr. $300.00 Cash '• 303.00 To Bills Reoeivable, 600.00 " Interest, 3.00 Where a Cash Book is kept of course the cash would have to be put through it. that case the entries for No. 1 would be as follows : — * If the note were not disconiiteolvency, the book debts yield on an average not more than ■')il per cent. ; and in not a few instances the insolvency itself is in a large measure produced liy allowing worthless accounts to remain on the ledger, and regarding them, and represent- ius; tliein to creditors, as assets of the business. Suppose you have upon your ledger the following accounts considered bad : — Jones, $57 ; lirnwii, .i$31.5(l; Green, $41. HO ; write tiiem off by the following journal entries : — Dr. $130 40 i,-)7 no 31 60 41 90 ,10 Bad debts account, To Jones " Brown, " Green, For amounts at tlieir debit that we consider impossible to coHect. Loss and Gain Account, T>r. $130 40 To Had Debts Account, $130 40 For am luiitH written oil' trausferreii. It will be observed that the accounts arc first written into Bad Debts Account, and the l«t r is closed into lioss and Gain. If they were left in Bad Debts Account, or in a .Suspense I Aicouat, they would still be in the form of assets. Of course they might be written into Lus and Gain atonce, but the object desired in dealing with them, as we do here, is to have hiiai'couut showing distinctly the sum written off yearly lor bad debts as well as the names rMeliuiiuents, each of which occupies a line by itself in the account. Kecording them thus in the ledger you can turn to the account at any time and have the whole list, extend- 1 %, it may be, over many years, before you. I! I I ., !lv-? ■ 179 Should you collect any of the accounts subsequently, you would make Cash debtor to Bad Debts, and in the explanation give tho individual's name uni other particulars. A worthless note would be dealt with as you deal with the open accounts above adding to the words ' Bills Receivable ' in Bad Debts account, the name of the maker in parenthesis. TO SHOW SETTLEMENTS IN LEDGER ACCOUNTS WITHOUT RULING. It is a great assistance to a bookkeeper to pursue a method of showing clearly the various settlements in the course of a year, and the settled items of a large, or even a small, account in the ledger ; but it is not desirable to rule an account oftener than the ledger is balanced. We therefore recommend the plan shown in the example below. Dr. R. B. BEATTY. Cr 1882 1832 Jan. 2 To Mdse, 49 A 197 50 Feb. 1 Bv Bills Receivable, 70 A 43(5 70 ir. 11 11 64 A 2,S9 20 April 1 I'l 11 101 B 749 90 Feb. 17 " Cash, 120 MO 0) .\lay 10 11 11 170 c 57 50 Mar. 7 21 " Mdse, 11 11 84 91 R B 597 i-)2 20 70 April 3 ii II 102 C 57 50 May 10 29 11 11 11 11 121 125 143 49 20 15 The letters of the alphabet are used consecutively, and should alwaysT)e in lead pencil. A hard black that will not blur is the beat. You will note that the debits in January are settled by note in February, and the settlement is indicated by the letter A opposite eaeh debit and the credit. The March and .\pril debits are also settled, and the letters B and C on each side show the respective settlements. Suppose that on the first of June, when miking out statements, you (H)me to this aceiuint, you see at a t:lance the unsettled items. We have found that in lonj;. coiniilicat d accounts this system of showing settlements is exeeedingi}' valuable. In practice we have also used it in the Bills Receivable and Bill? Payable accounts to show notes retired, each bill ofcour.se being posted singly. WOKKING ACCOUNT. This account is practically the sn me as a L)ss an 1 (lain account, and would be u-se.l tn close the representative accounts in a led^^er, say, of a public in- titution. Take a church fur instance. It is desirable (o show income and expenditure under such L nlger titles n-i the fol lowing: Collections, Pew Rjtit, Mi.ssionary Fuid, iSte., for iii-ome ; and Lightlnu^ Sexton, Organ Expenses. &e., for expenditure. At the close of the year, instead of closing these accounts into Loss ami Gain, as would be done where trade is being carried on. you would close them into Wohkincj Aocouxt. an 1 it woulil show either (\vcess of income or e.\pen dituve, and be closed into the " CiiUHCil " account, which is tlu; one that keep- the Ledger in balance, or represents the net worth or in.solvency, as does the Stocic account uf an nidi vidual. For a more extended explanation and illustration of Working Accounts, .see '' jolm Bon's Jouit Stock Company Bookkeeping." coiisecut '■■;• i'rs'^W'Pil 179 WAEEHOUSING. The following Set of Warehouse Books illustrates the method of keeping a record* of, and dealing with Grain or Goods stored in a Public Warehouse. Stub. WAREHOUSE RECEIPT. U 127. Bdleoille, September 29, 1885. Received from Silas Allan, 1350 bush. No. 2. Barley. Entered Warehouse Ledger, Folio 1, " 2, » No. 127. ) ■ Belleville, Sept. 29, 1885. ^Received into store from Silas Allan, in good order- ^ and condition, thirteen hundred and iifty bushels No. ^ 2 Barley, subject to his order. R W. CAMERON, iir'are/wudemuH. The above is the form of receipt granted for grain, flour, or other commodity stored in a warehouse. It is called a Warehouse Receipt, and serves a very useful purpose in business transactions. It is made subject to the order of the individual, and is thereby Begotiable by endorsement. The thing it represents may be sold and transferred without the buyer personally seeing the stuff. The bargain being concluded, the holder simply endorses the Receipt and hands it to the purchaser, who now becomes the owner of what is suired. Loans are made by Banks upon Warehouse Receipts, and in other ways it is a valuable and convenient business paper. The blank forms should be printed and bound in books containing about 250, and liould be consecutively numbered. WAREHOUSE LEDGER. I'hi? Ledger is kept with (piantities only. It is to show the quantity of the various liinds of grain or other stuff stored and i i' owners of it. It is kept on tiie double entry I principle and is exceedingly simple and correct, It is pvstcd from the stubs of the IFare- ■«« Rtcdpt and Delivery Order hooks. "V! ■*'■■' ( * ' 1' ■-!... ';l ■' % ^"1 t 1 180 EXAMPLES. Suppose you have received into store, for wliicli you liave granted Warehouse Receipts as shown in 6 different stubs as on the form preceding : 1350 bush. No. 2 Barley from Silas Allan, 2000 " No. 1 500 bblfi. Flour 1375 bush. Peas 780 " " 1875 " " R. McNaughton, Jas. Norris, A. M. Gunn, T. H. Smalliuan, John Walker, and have made the following deliveries for which orders were given, and which are shown in 7 different stubs in your Order Delivery Book as per the form preceding : , 1000 bush. No. 2 Barley, Silas Allan, 500 " Peas, John Walker, 600 bbls. Flour, Jas. Norris, 370 bush. Peas, John Walker, ., 150 " No. 2 Barley, Silas Allan, 257 " Peas, A. M. Gunn. 1000 " No. 1 Barley, K. McNaughton, ^ you would post to the respective accounts as follows : For stuff received, debit the account representing the stuff received, and credit the individual from whom received. For stuff -delivered, debit the individual from whom originally received and to whom "Warehouse Receipt was granted, and credit tlie account representing the stuff delivered. You will keep this book posted each day, and thereby show at all times the commodities, and the lespective quantities stored and the owners of them. A trial balance of balances taken from time to time will prove its correctness or ether wise. From this Ledger you will also be able to make out accounts for storage. No. 2. BARLEY. 1885 Sep. 29 To Silas Allan, W. k. 1 No. Bushels. 1885 127 1350 Oct. 18 29 By Silas Allan, Silas Allan, No. 250 254 Bushels. lOOD 150 ^'n. 1. BARLEY. Sep. 30 1 W. R. No. liBushela. To R. .McNaughton! 128 || 2000 !Xov FLOUR fixer" No. By R. ilcNaughtonI 250 Bushels. 1000 1885 Sep. 3b To Jas. Norris, W. R. No 129 Bbls.' 500 1885 Oof 20 By Jas. Norris, D.O. No. 252 Bbls. 500 PEAS. ___ W R. 1 s D.O. 1 No. Bushels. No. Bushels. «ep. 30 To A. M. Gunn, 130 I.i75 Oct. 19 By John Wnlker, 251 500 Oct. I "T. H. Small raun 131 780 (1 29 '■ John Walkur, 2.53 370 (1 3 " John Walker, 132 1875 Nov. 1 " A M Guun, 255 257 1885 Oct. 18 ToN( u 29 11 Nov 5 To No Oct. 20 To Fl Nov 1 To Pel Oct. 19 29 To Pea The Debi of each in store trial balance si posted, and an taken at any ti OPEXI JOURN.^ When a si nal entry uecess If he has ( abo, cons^iuen m SILAS ALLAN. TJTOT W.k. 18S5 Xo. Bushels. 1885 No. Buahels. Oct. 18 To No. 2 Barley, 250 1000 Sept 29 By No. 2 Barley, 127 1350 I( 29 II II 254 150 E. McNAUGHTON. Nov 5 To No. 1 Bailey, D.O. No. Bushels. 25(J 1000 Sept 30 By No. I Barley, W.R, No. 128 Bushels. 2000 JAS. NORRIS. Oct. • D.O. No. Bbls. W.R No. Bbls. 20 To Flour, 252 1 500 Sept 30 By Flour, 129 £00 A. M. GUNN. Nov I To Peas, D.O. No. Bushels. 255 257 Sept 30 By Peas, W.R. No. 130 Bushels. 1375 T. H. SMALLMAN. lOct. 1 By Peas, JOHN WALKER. W.R. No. 131 Bushels. 780 Oct. 19 29 To Peas, II II D.O. No. 251 253 ii Bushels. 500 370 Oct. By Peas, W.R. No. 132 Bushels, 1875 REMARKS OX THE LEDGER. The Debit Bal.\nce of the Barley, Flour and Peas accounts will show the quantity of each in store, and the Credit balance of the individual accounts will show the owners. A trial balance should be taken from time to time to prove if the Ledger is being correctly posted, and an abstract statement, showing what is in store and the owners of it, may be taken at any time, in a few minutes. OPENING LEDGERS UNDER VARIOUS CIRCUMSTANCES. JOURNALIZING RESOURCES AND LIABILITIES FOR SINGLE PROPRIETOR. When a single proprietor commences business possessed of certain resources the jour- nal entry necessary to open the Ledger is Sundries (the accounts representing each resource) Dr. To Stock (or the proprietor's name). If he has debts or liabilities, as well as resources, they must be shown in the Ledger also, cons^uently a journal entry would require to be made for them as follows : — Stock (or the proprietor's name) Dr. To Sundries (the accounts representing each liability). N ;.ii, 'ft ' . 'hif;-.:-. hh '' \i 182 When the foregoing entries have been posted to the Ledger you will show on the Dr. side each resource under its own title, and on the Cr, side each liability and in the stock account the net capital. ' , JOURNALIZING RESOURCES AND LIABILITIES FOR PARTNERS COMING TOGETHER FOR FIRST TIME. "When two or more partners come together for the first time, each bringing in resources and liiibilities, you will make the resources which each brings in Dr. to himself, and make each Dr. to his own liabilities. For example : — . • Cash Dr. $1500.00 Bills Receivable " 750.00 Real Estate " 1000.00 To J. W. Neal $3250.00 Effects invested J. W. Neal ' Dr. 900.00 To J. Runciman 150.00 " Bills Payable 750.00 His liabilities assumed by the partnership. 1 Cash Dr. $2000.00 Merchandise " 1000.00 M. MacCormick " 89.00 To John L. Kerr 3089.00 Effects invested. John L. Kerr Dr. 425.00 To Bills Payable 250.00 " Andrew Shaw 175.00 His liabilities assumed by the partnership. The resources and liabilities of each now become the resources and liabilities of the partnership ; the individual partner's accounts showing each one's capital or insolvency. A partnership cannot have an account with itself. JOURNALIZING TO OPEN NEW ACCOUNTS FOR A PREVIOUSLY EXISTING PARTNERSHIP. An accountant is frequently called upon to open a new set of accounts for a previously existing partnership. The data from which it is to be done will be a balance .sheet or statement showing the firm's resources and liabilities, and the amount I'the capital or insolvency of each partner. The student will observe that it would not be possible to journalize in this case, as is done when partners come together for the first time, because your cannot say. that any particular resource or liuijility is that of any one partner. We suggest either of the following methods : PROPRIETOl 183 Sundries Dr. to Sundries. , {Resources.) Cftsh MercliandlHO JJilla Receivable John Macoim J. W. Loudon K. A. Van Allan $570.20 4220.00 1500.00 78.20 57..':0 1^5.90 To DillH Payable " J. II. Watlington . " F. Macaulay " Joseph Elliott (Liabilities •) » 1570.00 340.00 170.00 58.rjO C551.s-:0 2138.90 .^ " (Partner) Jas. Jolinson, Capital 2100.(,0 " (Partner) W. H. Fuller, " 2313.30 NOTB.-When posting, debit each Uesource To Sundries, aud credit oaoh Liability By SuaJriea Sundries Dr. to Capital Cash Merchandise Bills Receivable John Macoun J. W. Loudon R. A. Van Allan Capital Dr. to Sundries Bills Payable $6551.80 (Resources.) $ 570.20 4220.00 1500.00 78.20 57.50 125.90 6551.80 (Liabilities.) J. H. Watlington F. Macaulay Joseph Elliott (Partner) Jaa. Johnson, Capital (Partner) W. H. Fuller, " $1570.00 340.00 170.00 58.50 2138.50 2100.00 2313.30 NoTE.--If preferred, Capital might bo made Dr. to tho partners in a Boparate entry. When either of the above entries has been posted to the Ledger you will show on the Dr. side each resource under its own title, on the Cr. side each liability, and on the Cr. side of each partner's account the amount of his capital. You will ob.scrve tliat the "Capital Account" is simply used as a medium through whicli the other accounts are opened. PROPRIETOllS OR PARTNER'S CAPITAL ACCOUNT, AND PARTNER'S CURRENT (OR personal) ACCOUNT. It is often desirable to keep the Capital Account of a pri.prl»t.or or partners distinct from the account showing their withdrawals for family and other personal expenses or • '<^i\mm li:4|>!fiH::,| 'm' "f T'fi CI 184 against salary. In that case open, say, J. W. Johnson's Capital Account, and J, W. Johnson's Current (or Personal) Account. The former will show the capital, and ilio latter the withdrawals. At tiie end of the business year close the Current Account with this journal entry : J. W. Johnson's Capital Account Dr. To J. W. Johnson's Current Account. For amouat withdrawn during the year trnnsCerred. If the proprietors are allowed a certain salary, then credit this account at the end of the year, by Salary or Expense, and if the individual has overdrawn his account he should pay back the overdraft in cash, which would be passed to its credit. TRA.VSFEKRINa ACCOUNTS FROM AN OLD LEDGER TO A NEW ONE. When transferring accounts from an old Lodger to a new one proceed as follows : Call the old Ledger, Ledger A, and in the accounts which show a debit balance write on the credit side. By Balance to Ledger B, Polio — , and in the accounts which show a credit balance write on the debtor side. To Balance to Ledger B, Folio — . Call the new Ledger, Ledger B ; write in a bold hand the names of the accounts as you transfer them ; on the debtor side of those that closed in Ledger A By Balance write To Balance from Ledger A, Folio — , and on the credit side of those that closed in Ledger A To Balance write By Bal- ance from Ledger A, Folio — . Immediately after transferring an account index it. The be&t time to make such a transfer is when the annual closing time comes round, you will then only require to transfer the Resources and Liabilities and Partner's accounts and open new representative accounts as required. There is very little more labor in transferring balances to a new Ledger than bringing them down in the old one. Household Fiirn Plant as under FARM ACCOUNTS. ""^Originally prepared by J. W. Johnson, at the suggestion of the Honorable the Pro- vincial Treasurer of Ontario, for the Royal Commission appointed to take evidence ou agricultural matters in the year 18S0, and recommended by the Commissioners. ' TO TEACHERS. ' . ■ . ' The keeping of accounts by Farmers is strongly recommended, and in this connection we would say to Teachers in rural sections desiring to add something of practical value to their curriculum, that they can teach any boy of ordinary ability to keep books on the farm after this method. ' Commence with, say, the first seven Sets in this book, then let them write up the Day Book transactions only of this Set, aud work out the Journal, Ledger and statementa for themselves. ...•.!' 185 FARM ACCOUNTS. Township o/Thttrlow, April, 1880. DAYBOOK. JOURNAL. ■i John Riblin this diiy fonimcncfs to knep a sol of books by double entry for the purposR of recorij- in<^ the budiiiRSd of hii> frtrm. and to di'termiiic yeiiily \m givius and loas- h, and assets and liabil' ties. jNVBXTonT or piio- ruriTY. Real Estate, 50 acres, ns under; Field Kg. 1, 8 neros. Field No. 2, 8 " Field No. 3, 8 " Field No. 4, 4 " Field No. 5, 4 " Field No. (J, 8 " Field No. 7, 6 " Orchard, Garden nnd Uiiildings, 4 " 60 acres valued, inchiding build- ings, at $75 per acre. Household Furniture.. Plant as under 2 Teams $ 1 Rea|)er 1 Mower '2 Ploughs, at $15 1 lliirniw 2 Sets Harness, Rt$2". J Whlffletroes. at $2.50 1 Wrtgi.;011 1 Biigg.v 1 UuUivator 1 Horse Rake Sundry Imple- ments ,$3750 520 890 too.oo ino.oo 75.00 30.00 15.00 50.00 5.00 75.0(1 ion. 00 10.00 24.00 COO 00 00 00 8!)0.00| Lire Stock, as under : 5 Cows 150 00 10 Sheep 50.00 3 Hogs 1500 Cash Farm Produce, oats, hay, &c., ^c. on hand, Field No. 6, For value of timothy and clover seed in ground. 215 00 525 320 10 Real Estate Dr .. Furniture " Plant " .. Live Stock " Cash " ., Farra Produce Dr., Field No. G <' ., To Capital, 6230 $3750 520 890 215 625 320 10 00 Carried forward, $0230 $6230 00 00 $6230 00 1'fSi;:;3'|t srr:!,;-; li .♦^■■.■*;:' !":ll • ^^f't ,in.'".;,',, I IMAGE EVALUATION TEST TARGET (MT-3) // > .A .V^. '^ s 1.0 I.I l^|2| |2.5 |50 "^ 1^ - *- IM I li£ Il2.0 1.8 1.25 11.4 11.6 II — 11111= .^^ 6" ► p> ^;. ^^ <^/s ^i^ w Phofe^raphic Sciences Corporation d 4 4> V v> ^ 6^ 13 WEST MAIN STREET WEBSTER, NY. MS80 (716) 873-4503 'V- ^ r 186 DAY BOOK. Townthip qf Thurlow, AprH, 1880. JOURNAL. '■ 3rd. 3rd. Forward., S6230 00 $6230 00 Paid Gash for Seed : 3 Fields Nos. 1 & 2 Dr. 24 00 Fields Noi. 1 ft 2, 32 bush. 3 Field No. 3 " 16 00 Barley at 75c., Field No. 3, .; 16 bush. f24 00 3 11 i< 4 ii 4 00 3 II II 5 11 6 00 Wheat at $1, 16 00 2 To Cash, 49 00 Field No. 4, 8 bush. Oats at 60c., 4 00 Field No. 6, Indian Corn and Potatoes, 6 00 149 00 r_^ f*4 nth. '^» nth. Credit John Thompson, 9 00 3 Fields Nos. 1 ft 2 Ur. 18 00 4 " \Vm. Wilson, 9 00 18 00 4 To John Thompson, 9 For 9 days' labor each on 4 " Wm, Wilson 9 00 Fields Nos. 1 and 2. l«th. 16th. Credit John Thompson, 4 60 3 Field No. 3 Dr. 9 00 " Win. Wilson, 4 60 9 00 4 To John Thompson, 4 50 For 4^ days' labor each on Field No. 3. 4 " W. Wilson, 4 50 ' '1^; '119th. -V ^ 19th. Credit John Thompson, 2 26 3 Field No. 4 Dr. 4 60 " Wm. WilsOB, 2 25 4 60 4 To John Thompson, 2 25 ■ For 2V days' each on 4 " Wm. Wilson, 2 25 Fielt No. 4. 23rd. 23rd. Credit John Thompson, 4 60 3 Field No. 6 Dr. 9 00 •' Wm. Wilson, 4 60 00 4 To John Thompson, 4 50 For 4} days each on FieiU 4 " W. Wilson, 4 50 No. 6. 28th. 28th. Paid Cash for garden seed, 4 2 Garden ft Orchard Dr. To Cash, is 00 6 00 Ohio Corn for green feed, Vetches, Millet, *c., 6 00 u Paid Cash for labor on 4 2 Garden ft Orchard Dr. To Cash 9 00 Orchard and Garden 9 00 • V V nDiS| 30th. 9 00 30tb. Paid John Thompson on account. Paid Wm. Wilson on acct. 10 10 00 00 20 00 4 4 2 John Thompson Dr Wm. Wilson, To Cash, 10 10 00 00 20 00 The Milk from our 6 Cows is taken by the "Allan Cheese Factory," at the rate of 8c. for a gallon of 10 lbs. Hay 6lh. Cash Dr. MaySlh T'»' 2 15 70 Received from "Allan Chtese Factory" tor milk in AprU, (jasb. 6 To Cows, 15 TO 16 70 29th. John Thompson Dr. Wm. Wilson Dr. To C^b) Paid ^ John Thompson account in fUll, 10 26 4 4 10 10 26 26 20 50 Paid Wm. Wilson account 2 in full, 10 20 30 60 Carried forward, 70 16390 16390 70 Paid Gash for Psid for harve 187 Townthip of Thurlow, Jufu, 1880. ^ DAY BOOK. JOURNAL. June 1st. Amts. forward, |{6390 70 'k639( ) 70 00 Ptid Gash for Groceries $7 50 June 1st. .1 " «< Dry Qoodt 17 00 $24 60 5 House Expenses Dr. 24 60 30th. 2 To^Cash, 124 50 Hare el'pped and sold foi 30th» Cash, 2 Cash Dr. 43 00 t 00 60 lbs. Wool at 30c., Sold fur Oasb 10 larabs 13 00 5 To Sh«ep, 43 00 at 12.50, Hare harrested from Field No. 6, 20 tons Hajr 25 00 43 00 2 3 u Farm Produce" Dr. To Field No. 6, 200 00 200 00 9 (JO assumed to bo worth |10 per too, 203 00 II Paid for harresticg Hajr, 7 00 3 Field No. 6 Dr. 7 00 t 50 t SO 2 To Cash, 7 00 July 3l8t. July 31st Hart ^barrested and 2 Farm Produce Dr. 420 00 threshed from Fields 3 To Fields Nos. 1 k 2 420 10 Nos. 1 and 2, 560 bush. 2 25 - Barley (average 35 to 2 25 acre) for which I hare Uen offered and hare accepted for October delirery, 75c. per bush, « 420 00 f 50 \ SO August Sth. Hare barreated, threshed and told 240 bush. August 6th. Wheat for Cash from Field No. 3, at $1.20, 288 00 ?ut into Barn for use 3 Cash Dr. 288 00 > CO , 1 from same Field, 20 3 Faim Produce " 24 00 bush. Wbeat, at 11.20, 24 00 312 00 3 To Field No. 3, II 313 00 Credit John Thompson, 4 00 days. Fields I and 2, 4 00 Credit Wm. Wilson, 3 3 Fields I and 2 Dr. 7 00 days, Fields 1 and 2, i 00 7 00 4 To John Thompson, 4 00 II 4 " W. Wilson, 3 00 Credit John Thompson, II 00 ^ days, Field 3, Credit Wra. Wilson, ^ 3 60 days, Field 3, 3 50 7 00 3 4 Field No. 3 Dr. To John Thompson, 7 00 3 lO 16tb. 4 " W. Wilson, 3 50 Paid for threshing Barley. ISth. Fields Nos. 1 and 2. 500 bush., at 5c., 28 00 TO Paid for threshing Wheat, Field No. 3, 260 butfta.. 3 Fields Nog. 1 ft 3 Dr. 28 00 at 6c., 16 60 43 60 3 " " 3 Dr. 15 60 II 2 To Cash, 43 SO Hare harrested ft thresh- « 60 ed from Field No. 4, 160 bu8h;0ats, assumed 3 Parm Produce Dr. 80 00 - ■ — to be worth 60c. a bush 80 00 3 To Field No. 4, 80 90 70 Carried forward. 17534 80 17534 30 188 Townthip qf Thurlow, Augu$t, 1880. 1 DAY BOOK. JOURNAL. 1 ■ 20th. 1 1 I 30lh. 30lh. Forward, |7634 | 80 17634 80 I Paid Cash for harTestlng Paid Bubscrii Oats. Field No 4, Paid Caili for thrcshlnc $5 00 3 Field No. 4 Dr. 9 80 Church for on( fo 2 To Cash. f id OaU, Field No. 4, 4 $9 80 March 31 Rcceired from "Allan II Paid Conger their account • Cheese Factory," 2 Cash Dr. 62 80 ceries to date. Cash in Bettlement to date C2 80 5 To Cows, 62 30 Paid subscri Sept. 16ih. " Weekly Glo Hare hnrTestcd from Sept. 15th. Paid subscrii Field No. 6, " Farmers' Ad 120 bush. Corn, assumed to be worth 70c., (4 00 2 Farm Produce Dr. 144 00 150 bush. Potatoes, as- 3 To Field No. 6, 144 LO sumed to be worth 40c., 60 00 144 00 Psid Taxes for 1 • • ■ « " J. B. Grab u •• suit Clothes fc Paid John Thompson, 2 for the boys, Cash in full ofacct., 7 60 4 John Thompson Dr. 7 60 Psid Geo. Walb Paid \Vm. Wilson, Cash 4 Wm. Wilson " 6 60 Groceries in ft in full ofacci.. 6 60 14 00 2 To Cash, 14 00 Psid John McI II Boots and Sh( Paid for labor on Field II II No. B, 19 00 II 4 2 Field No. 6 Dr. To Cash, 19 00 19 00 Credit Farm P( count with Hi Paid for Dry Goods as per II OaU, Hay, et( billofFof>ter& Kicd, 47 GO t > House Rxpeascs Dr. ! To Cash, 47 GO 30th. r A 47 .w II Have harvested from 3 acres of Orchard, 4C8 bbls. Apples, which 1 sold for Cash to a Mont- II Credit Cows v used in House I Cash Dr. 685 00 1 t II real buyer, at $1.25. 585 00 ' 1 To Garden and 686 00 (1 Orchard, Charge Cows a Paid for pictting aid bar- It For Pasture— relling the above apples. 60 00 t Garden ft Orch'd Dr. DO 00 'i Uct 29th 2 To Cash, 60 no For Garden Fcei Received Cash for Barley Oct 29th. and Orchard, For Hay. Stra as per agreement re- corded July 31st. FaruiProduc 420 00 2 Cash Dr. 420 00 4 1*4 ••• • • *#*« *«^* Not. 30ih. 2 To Farm Produce, 420 00 II Received from "Allan Nov. 30th. Cheese Factory," Cash 2 Cash Dr. . 47 10 Charge Sheep iu full for season. 47 10 5 To Cows, 47 '.0 For Pasiure- II II For Hay, &c.,— diice. Paid " Allan Cheese Fac 6 House Expenses Dr. 15 20 tory," for Uuiler ant 2 To Cash, 15 20 Cheese got during th« ' II season for house use. 16 20 Dec. 15th. Dec. 15th. Give Farm P Sold 40 bush. Cats fo 2 Cash Dr. • 19 20 count Credi Cash, mt 48c., 19 20 2 To Farm Produce. 19 20 used for Hou 1881 1981 II Jan. 20th. Jan. 20tb. Bold 20 bush. Potatoe 1 2 Cash Dr. 10 00 Write off frow for CMh, 60c. 10 00 2 To Farm Produce, 4 " Field No. 6, ^Carried forward 8 2 00. 00 of Plant 10 I wear and tef f8978 "40 18978 40 DAY BOOK. 189 Township 2 80 May 29 " Sundries, 2 20 51) Sept. 30 '< Garden k Orchard 685 00 June 1 " House Expenses, 3 24 50 Oct. 29 " Farm Produce, 420 00 II 30 " Field No. 6, 3 7 00 Nov. 30 " Cows, 47 10 Aug. 15 " Sundries, 3 43 60 Dec. 15 " Farm Produce, 19 20 II 30 " Field No. 4, 9 80 1881 Se^t. 15 " Sundries, 14 00 an. 20 " Sundries, 4 10 00 15 " Field No. 6, 19 00 K 15 " House Expenses, 47 SO II 30 " Garden * Orchard, 60 00 Not. 1881 Jan. 30 " House Expenses, 15 20 20 « do 5 20 00 March 1 " do 6 18 90 II 1 " do 5 138 10 April 1 " Balance, 6 1603 70 (2016 80 112015 80 April 3 tl 11 Aug. 5 1. 15 1881 April 1 April 3 To Cas It 16 « Sun AUR. 5 " Sun I( 15 " Cas 1881 April 1 'KLot 191 Dr. FARM PRODUCE. Cr. 1535" I8d0 "^S April 1 To Capital, << Field No. 6, " Fields 1 and 2, 1 $320 •do Oct. 29 By Cwh, 4 f420 00 JODC 30 3 200 00 Dec. 15 " Cash, 4 19 30 .'nir 31 3 420 00 1881 Aur. 6 " Field No. 3,^ 3 24 00 Jan. 20 " Cash, 4 8 00 ..' lA " Field No. 4, 3 80 00 March 31 " Horse Keep, S 210 00 Sept. 15 " Field No. b, 4 144 00 II 31 « Cows, S 60 00 II 31 " Sheep, 5 10 00 II 31 "House Expenses 5 C5 00 ( $1188 00 April 1 '' Biilanco, 6 395 80 $1188 ^0 FIELD No. 6. (Grass.) \m April 1 June 30 1831 April 1 To Capital, •< Cash, " Loi$ and Oain, t 1 3 10 7 00 00 HHO June 30 6 183 f200 00 00 30 By Farm Produce, FIELDS Nop. 1 & 2. (Barley.') April 3 ti 11 Aug. 5 '• \5 IMl April 1 To Cash, " Sundries, " Sundries, " Cash, " Lo>$ and Oain, 2 24 00 i July 30 I 2 18 00 . 3 7 00 ; 3 28 00; 6 343 00 1 1 $420 00 By Farm Produce, FIELD No. 3. (Wheat.) April 3 (1 16 Aug. 6 15 1881 April 1 To Cash, " Sundrieii, " Sundries, " Cash, ".Loia and Oain, U 7 15 264 $312 00 00 00 00 60 40 Aug. By Sundries, /^^ 192 FIELD No. 4, TBStT A^^ll Aug. 1881 April 3 1» 30 To Cash, " Sundries, " Cash, " LottandOain, 3 f4 00 Aug. 15 2 4 60 4 9 80 6 61 70 $81) 00 By Farm Produce, f80 00 f 80 I 00 FIELD No. 5. (Corn and Potn 60 9 00 4 50 2 25 4 60 20 25 3 00 3 60 $(i BO Dv. GARDEN AND OKCHARD. Cr'. 'lefiO 1 April 28 To Cub, 2 16 00 Sept. 30 Bjr Cub, 4 $685 00 ti II II 2 9 00 March 31 " Uowi, 5 10 00 aept 30 II II 4 60 00 April 1 <' Lou ani (Jain, 6 630 00 $595 00 $585 00 March April COWS. March April 31* 1 To Sundries. " Lot* and Qain, 5 6 05 60 $155 00 60 60 1880 May Aug. Nor. 1881 March 30 30 31 By Caih, II II " Douse Expensf a, 2 4 4 5 16 62 47 3« 70 80 10 00 $155 60 HOUSE EXPENSES • 1881 Jane 1 To Cash. 3 24 60 April 1 By Lo8i and Oain, 6 360 20 &pt. 15 II II 4 47 50 Not. 30 II II 4 15 20 1881 Jan. 20 41 U 5 20 00 liarch 31 31 II II II » 6 5 18 133 90 10 II 31 " Oows, 6 30 00 11 31 " Farm Produce, 6 65 00 : $359 $359 20 20 SHEEP. Uareb 31 II 31 April 1 To Field No. 7, " Farm Produce, " Loii and Oatn, 6 10 28 $43 00 00 00 00 June 30 By Cash, 43 00 $43 00 HORSE KEEP. 31 To Farm Produce, $310 00 1881 April By Lou and Oain, FIELD No. 7. (Paiture). To Lo$$ and Oain, 1881 March $30 00 31 31 By Cows, " Sheep, I H 194 LOSS AND GAIN. lAol ll8l . . "'■ March 31 To PUnt, S $89 00 April Br Fields 1 and 3, 'i Field No. 3, 3 f343 on April 1 '* House Rxpentes, 5 359 30 It 3 2)!4 40 It 1 " Horse Keep, S 210 00 i< " Field No. 4, 3 01 70 a 1 << Capital, 1 955 50 II ■1 (1 ti " Field No. 6, " Field No. 6, " Field No. 7, " Qard. k Orch'd " Cows 3 3 6 4 S 11.1 IH.1 30 530 00 00 00 00 IK) *) t II " Sheep, 5 28 00 flU13 70 $1013 70 BALANCE. Itel m\ April To Real Kjtate, I 37.')0 00 April 1 Oy Capital, 1 7185 5C " Furniture, 1 520 00 . " Plant, 1 801 00 •' Live Stock, 1 215 00 " Cash, 2 LIDS 70 " Farm Produce, 2 39J 80 117185 50 $7185 SO TRIAL BALANCE. April \tt, 1881. Dr. Cr. F^ia Capital Real Estate, Furniture, Plant Lire Stock, $3750 bin 801 215 00 00 00 00 $0230 CO 2 Cash, 1503 70 2 Farm Produce, 395 80 3 Field No. 6, 183 00 3 Fields No8. 1 and 2, 313 00 3 Field No. 3, V 2C4 40 3 Field No. 4, 01 70 3 Field No. 5, 113 00 4 Garden and Orchard, 630 00 S Cows, 60 60 5 House Expenses, 359 20 5 Sheep, 38 CO 5 Hone Keep, 210 00 6 Field No. 7, 30 00 6 Loss nnd^ Gain, ..... 89 00 * $7843 70 $7843 70 196 LOSS AWD GAIN STATEMENT. April Uf, 1881 Folio. Field! Noi. 1 and 3, LOMM. Gaink. 3 3 It) BcrM lown In Barlcj, Field No. 3, 8 ncressown in Wbenl, $343 204 00 40 3 Field No. 4, 4 Hcrei sown Id Oat , Ul 70 3 Field No. 6, 4 acres sown la Corn and Potatoen, 113 00 3 Field No. 6, C H arrcs Uraia, Field No. 7, 6 acres Paatiire, «183 30 00 00 4 Garden and Orcbard, S 4 ncrei, Cows, 530 00 6 8, Shepp, 00 00 r> 10, (louse Expenses, (3.')0 •iO 28 00 6 Morse Keep, 210 00 1 IMiint, 10 per cent, written off for wear and tear, Net Gain, 8!) 955 00 50 $1013 70 fiei3 70 ASSET AND LIABILlTi' STATEMENT. April Uf, 18S1. Folio. I Real Estate, 50 acres, including Buildings Furniture, Contained in House, Plant, as per list of a year Ago, less 10 per cent, written off for wear and tear, Live Stock, AS |)er list of a year ago, Cash, lu Bank $1490, in band $13.70 Farm Produce, Various crops unsold and unu.scd now in Barn, John Rohlin's Citpitnl one ytar ago, 6230.00 G'lin at pff at'iMnent, 9.55.50 Worth Ul April, 1881, AasRTH. $3750 020 801 215 1503 395 $7185 00 00 00 00 70 80 LlABIMTIKH. 50 7185 $7185 60 50 106 MARKING COST AND RETAIL PRICE ON GOODS. In Bat> » bnAinem m Dry Oooda an 1 Iliir Iwaro tho Coil prioo, as well m tlio retail prioo, should hi markud on each piuoo of f;oodi. Tlio |>rinaipal ohjoot in viow in lu irkia;; tho coHt prioo iH, that when an Invontory of Stook k hS.n ; taken you may know wliat each picoo of goods ootit. Some merchants mark tho rotail prico in plain figures, nnd tho cost in letters : othen mark tho former in letters and tho lattur in characters. The following will illuntrato tho method ^f marking goods : ^\ COST MARK. 12 3 4 5 6 7 8 9 10 11 12 V o\-u "0 V tn 07/vj:J/st cipher, repeater, adds ten. X e ^ RETAIL HARK. 123456739 10 cipher, repeater. 4ontgiveup z i. ■XAMPLE. Suppose goods cost $6 a dozen and you intend to retail them at an advvnce of 50 per «ent., mark the cost by tho character representing 6 (which is V), and follow it with the character representing the cipher, and follow this with the repeater ; then mark the retail price for the single article directly under the cost, in this case the prioo would be 75c.. which would be written .y g. Then the goods would be marked thus : V. X e. .VG TRADE AND CASH DISCOUNTS. A TRADE DISCOUNT is a discount off a nominal list price ; as, for instance, hardware manufacturers quote the prices of some goods at say $9.00 a doion and 25 per cent, off ; the real price being $6.75. When they desire to raise the price of particular lines of goods they don't alter tho list, or nominal price, but lower the discount ; and if they desire to lower the price they raise the discount. See form of invoice page 57. A CASH DisooCNT is an allowance made for the prompt payment of goods, instead of A term of >Bredit being taken. It will ba well to bear in mind that when paying duty on importations the Customs authorities will not allow any deduction of duty from the face • of an invoice for Cash discounts. 107 B00K.IEEPI1I6 FOR CHURCHES OR OTHER PDBLIC IMSTITUTIOH^. If tlio acoount'4 of pul>lic iiistitutionn woro ki'pt by an efficient motliod and auditc'l by coinpctont men, a vast auinuiit of tmulilo iiml m-amliil would otYun Ira navcd. Many a Kood man lia^t undertaken to bo homirury treasurer and to keep the bookx of a ehureli without any knowledi;u whatever uf even the (, kept by a bad metliod or by no .. 1'id at all. lie concludes that it is best to open a new net uf accounts and keep tbcui on do double entry syctem. He should do lirnt what th'! skilled accountant will always iliw'i 'e hoi "ailed uv , f) brinj^ order out of confusion or change sinj^le entry books to douuii; entry -us' lam the resources and liabi' ' • vherever they can b.i found, make out a staUirn , >, of them, and by subtractlnij the one from tlic otlier ho will determine whether th" iii.-?' lutiou |K)ssos»es capital, or i iisolvcnt. BOOKS TO BE USED. The books will bo the Cash Book. Journal, Pew Kent Receipt Book with stubs, and Lo(lj,'ir, and if there arc a lar^^o number of pew holders it will probably bo desirable to kci |> a SUnSIDIAIlV MIX1KR, in which to keep the individual pew holders' accounts, and keep one account in the Ueucral Led;j;er called " Pew Holders'," the debit balance of which would always be the game as the debit bal.inccs of the individual accounts in the Subsidiary Ledger. Pew rents would bo journalized say every six months as I'oUows : — * Pew Holders, To Pew Rents, followini; which the names, numbers of pows, and amount of rent duo by each indivi3 S-2 g ^ ; era o .. C-'^. H .°5 ft K 6^ Bff 2a! o a -. 3 -• o • T i-. * .< .< "* S ^ ^ o 3 £ B a o n o p ET P n g_ 5" o* o o to Is* O II § § 1 ? i g ' 1- C o O 2 n- ""■■"^ s» = §•2 "■ ^ -< o g j- Xi a re O -♦ Q^ re = reC i to 3 ** ~ t g CO C^'s re S" 199 ■ »-• M W ST 25? 5 <» o »-* ►-* to 1-» M to - ■0 e c -Mom -^ !» O 2, "3 S S* * o era o S" « = » * 5t — r ;^ o e »» -1 » .1 rf "* S ^ ^ o 3 Q o 2. o a 5. 5' o a o O = 3 O •TJ »» a ® 5 ^ o •" W y 5' £• & «H Cb -• c n> o 3 ►1 t' - S H Sj c so 5' g B I 3 t^ aj ta ^ D o 5" -■* g B 2 CO a a S 5' T ED 2 11 o 2. c I § a c o ?o — ■73 4 I i ^ E; a -a = P3 S to §■ !. -"■ 5 CO tr c P 3 3 O. & M S 05 vj' c cr to -^ <« B5 ^ <« 1—* t— < to to ^1 on o tt o t^i I*' >o. to l(^ CT CJ 10 ■=> 1 c» o o o o Oi o 1 o 1 o o o o . Date. 1 1 to *• *■ w *■ >(>. lb. CO ♦• ^ e s " ■• ' c " = 2 o* ""■"^ S« ii ? 3 S - ="j; -< o g — fi - » ° — '0 c o ui 3 ^ 2. 5 2.= ;::. « ^t 3 (/) — • V "^ ."^ a m o a o B B* B «-( M B 9 w "O " B p o a o -I o a S. tn ■<1 o H 13 O D3 o S O B 9 B 05 o -5' £ C H a Ts "" <» go O " s Q o IE o W o W in 2. o O > CO W 4fl to *0 M M n B m CO CO 00 CO v> 1 ~i Ci Ct I u< s c ^ 200 GENERAL LEDGER. Dr. Dr. CIIURCir ACCOUNT. {Capital) '^° ■ Date To Si Cite To Sundries, " Balance, jrp 3447 1G572 10 25 Date By Sundries, '< Working acct., J,F. 1970S 310 !|;20019 35 $20019 i» By Balance, EEAL ESTATE. $10572 To Church acct.. 15000 00 ORGAN 1 1 To Church acct., 3000 CA SH. I 1 ToCa ti 1 " Bal To Church acct., " Sundries, 120 1243 00 30 By Sundries, " Balanoe, 948 9.^ ■ 413 a:> ■ !r;i3(JJ 30 $1302 1 30 ■ To Balance, 413 35 FURNITURE. To Church acct., 1500 I H OLT W,W S. To Wo To Church acct., " Pew Rents, f.3 70 50 50 1 \ 1 1 i By Cash, " Balance, 113 41 00 00 ToCaa $159 00 $159 ' 00 g -' ] • To Balance, 41 00 MORTGAGE PAYA BLE. 1 To Wo J. N EIL L k , CC By Church acct., ». 3000 00 To Cai By Church acct., i 159 30 1 agre •Thi es wl 3 balance is the total th the total debit bala inde ncesi btedness n the Sul of P jsidia evrll older edgei d at the yearly closing t of t be books. aud ToCa /^ .« Dr. 201 SALAEIES. Or. Date To Sundries, To Casb, " Balance, J.F. $575 00 Date By Working acct.. To Working acct., To Working acct., GEO. WALLACE. Bj C Lurch acct.. JAS. LOBB. By Church acct.. REV. H. LOKD. 150 00 350 00 50 00 550 00 By Church acct., " ISalariea " By Balance, COLLECTIONS. By Cash, EXPENSE. PEW RENTS. 70 50 By Pew Holders, FUEL. 00 53 70 78 90 50 00 70 50 To Casl), xf: 40 00 Dale By Working acct.. LIGHTING. mm To Cash, 76 20 By Working acct.. 4««i:jt\ 202 Dr. Ml SSBOT VMi LW (6 )rgai wti). Ct Date To Cash, « Balance, i.T. $60 26 00 CO Date By Salaries acct., j;f. 75 00 76 00 75 00 By Balance, JOHN HARRIS {Sexton). 25 To Cash, II II " Balance, 10 00 80 00 10 00 1 100 00 By Salaries acct , By Balance, INTEREST. 100 00 joi» no 10 00 To Cash, 180 00 By Working acct.. WORKING ACCOUNT. 180 CO To Salaries, " Expense, " Fuel, " Lighting, " Interest, " •Church acct., 576 00 12 76 40 00 76 2d 180 00 310 85 $11!)4 80 By Collections, " Pew Rents, SUBSIDIARY LEDGER. For Peio Iloltlers' personal accounts. 1124 70 SI l!)4 80 30 50 Dr. JO] aNRO] 3INJ 30N (Peio No. 9). Cr. Date To six Dios' Rent, II II II II J.F. 6 c 00 00 Uato By Cash, O.B.F 12 00 $12 00 !f!2 no ! =!. JOHNSON (Pno No. 28). To 1 yr's Rent, " 6 mos.' Rent, 15 7 00 60 By Cash, 22 50 $22 50 $22 50 J. T. HEAVES {Pew ^ 'b. 115). To 6 mos.' Rent, 00 $15 00 To Balance, $15 00 N. YEOMANS (Pew No. 58;. To mo3.' Rent, 11 11 K II 7 7 00 00 00 1 »y Cash, R. FLINT (Pew No. 79;. To 1 yr.'s Rent, " 6 mos.' " To Balance, 15 7 00 50 $i2 50 By Cash, " Balance, |10 50 S. DONNELLY i^Petw iV^o. 61). To 6 mos.'. Rent, « II II u 7 7 50 60 00 $15 By Cash, J. H. RITCHIE (Pew No. 7i; To 18 raos.' Kent, II Q II 11 20 G $26 00 50 50 By Cash, J. McGILLIS (Pew No. 9). To 6 mo.s.' Rent, To 6 mos.' Rent, 50 W. BUNTIN (Pew No. 15;, 8 00 Mm 204 TRIAL BALANCE. L.F. ACCOUNTS. Dr. Balances. Cr. Balances. 1 Church, 16261 40 1 Real Estate, . 15000 00 1 Organ, 3000 00 1 Cash, 413 35 Furnitur.', 1500 00 2 Pew Holders, 41 00 2 Mortgage Payable, 3000 00 2 J. NeiU & Co., 169 6U 2 Salaries, 675 00 3 Geo. Wallace 68 70 3 Jas. Lobb, 78 SK) 3 Rev- H. Lord 60 00 3 Collections, 1124 30 3 Expense, 12 75 3 Pew Bents, 70 60 4 Fuel, 40 00 4 Lighting, n 20 4 Miss Boi\nian, 25 00 4 John Ha ris, .- . . 10 00 4 Interest, 180 00 30 $20838 $20838 30 WORKING ACCOUNT STATEMENT. {Similar to Loss and Gain Statement of a business.) L.P. Dr. L.F. Or. 2 To Salaries, 675 00 3 By Collections, 1124 30 " Expense, 12 75 3 " Pew Rents, TO 50 4 " Fuel, 40 00 4 « Lighting, 7G 20 4 " Interest, Balance, showing a gain as tlie result of the i year's opera- 180 00 tions. 310 85 $1194 $1194 80 80 STATEMENT OF ASSETS AND LIABILITIES. L.F. Assets. L.F. LlABILITIBS. 1 Real Estate, 15000 00 2 Mortgage Payable, Jooo 00 1 Organ, 3000 00 2 J. Neill k Co., 159 50 1 Cash, 413 35 2 Geo. Wallace, 58 70 2 Furniture, 1500 00 3 Jas. Lobb, 78 90 2 Pew Holders, 41 00 3 Rev. H. Lord, 50 GO 4 Jliss Bowman, 25 00 4 John Harris. Net ca'pital at date, being the worth when the books were open- ed as shown in Church ac- count. 16261.40 and the gain as shown 10 16672 00 125 in working acct. and $19954 35 statement, 310.85 $165T2.26 $1996'< 35 1= THE 40 00 60 70 90 00 30 50 OO 00 30 30 50 CANADIAN ACCOUNTANT PA.IIT III. CONTAINING EXPLANATIONS OF TEEMS AND PHRASES USED IN STOCK EXCHANGE, FORMS OF BUSINESS PAPERS, COMMERCIAL CORRESPONDENCE, AND ^ I COMMERCIAL CALCULATIONS, 00 50 70 90 00 00 00 12S COMPREHENDINa ABBREVIATED METHODS OF PRACTICAL COMPUTATION,. SETTLEMENT OF ACCOUNTS, <&c., NOT FOUND IN COMMON ARITHMETICS. 35 206 STOCK EXCHANGE. A Stock Exchange or a Board op BaoKERS is an association of brokers organiztd for the purpose of transacting the business of buying and selling stocks and bonds. Ezo' lugca are established in loading cities, and, through the members, acting as agents foi their customers, and on their own account, sales and purchases of stock are mostly made. Every association prescribes its own rules and regulations, which arc stringent, and rigidly enforced. Members are elected by ballot. The qualifications for membership are, in general, good character and standing and solvency. A certain term of residence in the place, and steady prosecution of the business of a stock and exchange broker, for a specified period, are also requisite. The fee for admission is generally very high, espacially in the United States ; in Now York it is $10,000 ; in Philadelphia, 65,000 ; in Boston, $2,000. A membership is transferable, and passes by descent, in case of the death of the holder. The word of a member with regard to any contract, made during the sessions, must be as good as his bond. A member failing to comply with his contracts, loses the privileges of the Board, and in case of insolvency he must make satisfactory arrangements with his creditors, in accord- ance with the rules, cfore be can be reinstated. The Board holds daily sessions, at which the stocks in the market are called by the president, or clerk. " Bids " and " offers " are made, and the word " sold," or "take" binds the bargain, which is recorded by the secretary. The rates of commission that may be charged for buying and selling are fixed by the Boards. ^ per cent, or 25 cents on every $100, is the usual charge on stocks and bonds ; except stock selling at $5, or under, per share, on which a charge of from 2J to G\ cents per share may be made. STOCK EXCHANGE TERMS AND PHRASES. The following terms and phrases, used on the Stock Exchange throughout the United States and Canada, and frequently quoted in newspapers, require explanation. To " sell short," is to contract to deliver a certain amount of stock, at a fixed price, within a specified time, when the seller has not the stock on hand. The " Shorts " are nicknamed " Bears," from the habit of these animals to tear, or pull down with their claws. They sell at the ruling prices when they believe there will be a decline in the market, and then operate to depress prices as much as possible, so as to buy at a lower figure, deliver the stock, and pocket the " difference." To " buy long" is to contract to purchase stock, deliverable within a stipulated time, in anticipation of a rise in the market. The " Longs " are nicknamed " Bulls^ from the propensity of these animals to toss with their horns. Their interest is to raise prices as much as possible, in order to sell and make a profit. A " corner " is the result of certain operations between these opposing parties. When it becomes known that there is a large number of " short contracts " out in a certain stock, advantage is taken of the fact by the buyers, who purchase all the floating shares they can 207 get hold of, 80 that when the time arrives for the fulfilment of their contract«, the holders have the " Shorts " at their mercy. The latter are compelled to purchase at greatly idvanoed prices, and are " cornered," unless by sharp practice they can " break down tbe corner," when their opponents are beaten, and lose by the operation. A " time sale," or " purchase," made simply with a view to speculate in the " mar-iin," or rise or fall in prices, without any design to actually deliver or take the stock, r.quires no investment, except to cover the margin, and even this is not always demanded of known and responsible parties. A contract is made to buy, for iniil|i:' i A Bill op Exchange is a written order from one person to nnother, directing him io pay a third a sum of monei/ therein named, and iismdiy the hill is made jmyahle, not to theptayee alone, but also to his order or to the bearer. The person who makes the bill is called the drawer ; the person to whom it is addressed the DRAWEE, and the person to whom it is ordered to be paid tbe payee. When the drawee undertakes to pay the amount, he is then called the acceptor. If the bill is made payable to the payee, or bearer, it may be transferred to a fourth party by merely delivering it into his liands, and the fourth party will stand in the same situation as the original payee did. If the bill be payable to the payee, or order, he cannot transfer it except by a written order usually on the back of the bill, called an indorsement, after which the payee is called the indorser, and the person to whom it is transferred the indorsee. Holder is a general word, applied to any one of the parties in possession of the bill, and entitled at law to receive its contents from another. A bill is either foreign or inland. It is called foreign when drawn by a person in one country upon a person in another country ; and inland, when both drawer and drawee reside in the same country. The latter are usually termed drafts. 208 Foreign bills are usually drawn in setH ; that in, copies of the bills arc made scparatly, each part containing a condition that it shull continue payable only so long as the otlicnt remain unpaid. Whenever any one of a set is paid, the others arc void ; for the wliolo w t constitutfs but one bill. The object in drawing them in sets in, tliat they may bo sent at different datt-s, or by separate conveyances, that tiuio may bo saved should one or more Ii^ lost. A Lktteb op Credit, sometimes called a Circular Letter of Credit, is a Bill of Exchange carried by travellers on which they can obtain monoy in different countries. FORM OF SET OF BILLS OV EXCHANGE. IST BILL OP EXCHANCJE, Exchange for £85. JiellevUle,l2th Mai/, \S78. Three days after sight of this my first of exchange (second and third of same date and tenor unpaid), pay to y, G. Beatty, or order, Eighty-five Pounds Sterling, value received, and charge the same to the account of W. B. BOBINSON. To George II. Si.mpsom, Bankir, London, 2Nn BILL OP EXCn\NOE. I Exchange for £85. litlhv'dh; 12//i May, 1878. Three d.-iys after sight of this my second of exchange (first and third of same date aiul tenor unpaid), pay to S. G. Beatty, or order, Eighty-five Pounds Sterling, value received, and charge the same to the account of W. B. ROBINSON. To Georqe II. Simpson, Bankjr, London. 3lU) BILL OF EXCHANGE. Exchange for £85. Belleville, \2th May, 1878. Three days after sight of this m^ third of exchange (first and second of same date and tenor unpaid), pay to S. G. Beatty, or order, tlighty-five Pounds Sterling, value received, I and charge the same to the account of W. B. ROBINSON. To George H. Simpson, Banker, London. The par value of Sterling Exchange is $4.86§, or 9^ per cent, over the old par which was 4.44 j. The rate of exchange is the price at which it is being bought and sold daily. PROMISSOKY NOTES. A Promissory Note is a written promise to pay unconditionally, and at all events, a specified sum of money. The person who makes the note is called the maker, and the person to whom it is payable the payee. A not«, while in the hands of the payee, has this resemblance to a bill, that it is for the payment of money absolutely and at all events, and when indorsed and transferred it is exactly similar to a bill of exchange. The resemblance begins as soon as the indorsement is made ; for then it is an order for the indorser upon the maker to pay the indorsee, which is the very definition of a bill of exchange ; the indorser is the same as the drawer, the maker of the note the acceptor, and the indorsee the person to whom it is made payable. See forms of notes, page 65. for necessaries 209 KEQUISITES OF A BILL OR NOTE. No particular words are necessary to make a bill or note ; but it must bo a WBITTEH order or promise, which, from tiio timo of making it, caiiuot be complied with or jjcr- formcd without the payment of money, rhou^h a bill or note, or uii indorsi'mciit thereon, miiHt bo in writing, such writing need not be in ink. A writing in peuoil is Huffieiont ; iuk, however, is obvioucly more desirable. The exact sum for which a bill or note is given muct bo inserted, and it must bo for the payment of money, and money only, and the sum to be paid must be payable absolutely, and must not depend upon any circumstances which may or may not happen. A bill or note drawn for a given sum, " and all other sums that may bo due to the payee,'" is not, even between the original parties, a bill or note. Nor is it good for the sum it .specifies, except as evidence of a dtbt. A variance bitwcen the sum superscribed in figures, and that mentioned in the body of tiie bill in words at length, will not render it^ uncertain, but the latter will prevail. The place where a bill is drawn should, in general, appear upon it ; it should also he dated, though the omission of either, or both, does not render tho paper invalid. Any date may be inserted by the maker of a bill, or negotiable instrument, whether past, present, or future; and the instrument is not invalidated by his incapacity at the timo of the nominal date. If a bill or note is datel forward, of a day not arrived, and any of the parties die before that day, such doatli will bo no bar to the remedy of a bona FIDE holder. It is no objection to a bill or note that it is dated on Sunday, for it does not follow t!iat It was made on that day. A bill drawn on Sunday, founded upon a contract made on tiiat day in tho ordinary calling of a person making it, is void in the hands of a person who, witli knowledge of tho circumstance, took it from the person to whom it was given ; but it holds good in the hands of an innocent indorsee for value. Every bill or note must be signed by the person making it, or some one authorized by him for that purpose. It is not essential to the validity of a bill that it be negotiable, or that it contain tho words, " value received," although in many cases it is higlily important these words be inserted. A bill or note may bo issued with a blank for the payee's name, and any bona FIDE holder may insert his own name as payee. But until the blank is filled up it is not a bill or note. A memorandum on a bill or nota made before it is issued may, in some instances, be eonsidered as part of tlie bill or note, and control its operation. As a memorandum, that if any dispute shall arise respecting thj consideration tho bill or note shall be void. PARTIES TO A BILL OR NOTE. A bill or note cannot properly be made or indorsed by, nor can a bill be properly addressed to, any person incapable of making himself responsible for the payment, nor can it bo properly made payable or indorsed to any person incapable of suing. Therefore, a bill or note cannot properly be made or indorsed by, nor can a bill be properly addressed to an infant ; except perhaps where it is drawn, indorsed or accepted for necessaries. m 210 ' As ail infant in capable of suing, ho umy be payuo or indorsee. But it uiay be qucHtionablu, in some caves, whether iiaynient Hhoultl not be uindc to his guardian. Dills or notes cannot properly bu made, indorwd or accepted by a married woiinin, unlcsH under peculiar eircumHtancc), where she holds property of her own, or actH by au- thority from her husband ; or where she resides here, and he is under » civil incapaeiiy uf bcin^ in this country. Where a bill or note is given to a single woman, and she uiarrieH, the property vest-i in her husband ; and husband and wife must usually join in the action upon it. If a imU' be made to a woman after makhiaoe, tlic interest vests in the husband. If a n'nvA- woman, being a party liable on a note, marries, her husband becomes responsible to tlie extent of tlio property which has come frt)m her into his hands, and they should b<> sued jointly. If (^the debt being still unatisfied) he dies, she is liable, and not his exeeutursi; if she dies, her representatives arc liable if there be assets, but not her hu.-bund. lu Ontario, under the Act of 1884, married women cm deal with .their separate estate as though they were sin^le. The contracts of a lunatic, an idiot, or other person non compos mentis from age or personal infirmity, are utterly void. A note obtained by fraud, or from a person in a state of total drunkenness, cannot be collected by a party who knew the eircumstauces when he took it. If persons who fill official situations, as churchwardens, overseers, surveyors, couimis- sioners, managers of joint stock companies, and the like, gi\-o bills or notes on which tliey describe themselves in their official capacity, they are nevertheh ss personally liable, uul, if fur a fraudulent purpoHc, may bo punishable as a forgery. Cutting off from a joint and several note the nume of one of the particH who has executed it will invalidate the note. If a bill or note ap|)ear upon the face of it to have been altered, it in for the holder to prove that it was altiTed under cireumstaneos which make it still available. The payment of interest upon it by the party chargeable will suffice for this purpose. When paying a note or acceptance you should, if it has not been done already, obtain tiie indorsation of tlie pnyoc upon it, as proof that you both gave the iKites and paid it, or . HE OBLIGATIONS OF PARTIES. The drawer's undertaking in a bill of exolmnge is Uint the drawee, upon duo present- ment to him, shall accept sueh bill, and pay the same when duo ; and tliat if the drawee Jo not accept it, or pay it when due, he will pay tlic amount of the bill, togetlier with oertain damages allowed by law ; provided lie is duly notified of such non-payment. It is the payee's duty, if the bill remain in his possessicm, to present it to the drawee for acceptance and for payment at the projKjr time and place ; and in case tho drawee refuse to accept or pay, to give notice without delay, to tlie drawer, of such refusal. The aoceptor underUikes, and is bound to p.iy the bill, accordiu'? to tho tenor of the acceptance, when it becomes due, and u|K)n due })resentment thereofT In short, all those who have signed, accepted, or indorsed a bill of exchange, are jointly and severally liable upon it to tlie holder. The acceptor is considered, in all cases, as tlie party primarily liable on the bill. lie is to be treated as the principal debtor to the holder, ^nd the other parties as sureties liable on his default. The acceptor of a bill stands, for most purpo.scs, in the same situation as the maker of a note, and the maker of a bill in the situation of the indorscr of a note. The acceptor's liability can only be discharged by payment, or other satisfaction by release, or by waiver. INDORSEMENT. A person who writes his name upon a bill or note otherwise than as a maker or acceptor, and delivers it with his name thereon to another person, is called an indorser, and his act is called an indorsement. Indorsements are of two sorts: blank, and full or special indorsements, and are always written upon the back. Special indorsemeuts are modified in diffcr«nt ways as'shown in the following: 212 1 — Indorsement in blank. John A. Fraser. 2. — Indorsement in full. Piiij to John A. Fraser, or order. S. G. Baker. 3. — Qualifio;! Indorsement. WitJiout recourse to me. S. G. Baker. 4. — llestrict'.ve indorsement. Pai/ to John Smith only. S. G. Baker. FORMS OF INDORSEMENT. Or the following might be used : Pay to John Smith or ordtr for my use. Pay to John Smith for my account. 5. — Guarantee on a note. For value received I hereby guarantee the payment of the within note. S. G. tiakcr. G. — Indorsing partial payments on a nuto. Datr lleceiutd on the within note the stnn of Tirenty-Jioc PoHars. No particular form of words is essential to any indorsement. A blank indorsement is made by the mere signature of the indorser on the back of the bill, as above ; its effect i< to make the instrumont thereafter payable to bearer, and it places the indorser in the posi- tion of surety for the maker. When several persons separately indorse a bill, in blank, and it is dishonored by tlie drawer, the payee or holder has a right of action against all the indorsers, or he may sue and recover the amount from any one of them. The maker of a note is the principal "debtor, and all the indorsers are sureties for him liable on his default. But though all the indorsers are, in respect of the maker, sureties, they are not, as between themselves, merely cosureties, but each prior party is a principal in respect of each subsequent party. For example, suppose a note to be indorsed by the payee and two subsequent indorsers, as between the holder and maker, the uuiker is the principal debtor, and the indorsers are his sureties. But as between the indonsors, the first indorser is the principal debtor, and the subsequent indorsers are his sureties. A discharge, therefore,*to the prior parties is a discharge to the subsequent parties, but a dis- charge to the subsequent parties is not a discharge to the prior parties. In case of an indorsement where parties become co-sureties an indorser who pays a bill has a right to reimbursement from his co-sureties, in proportion to their number, Thus if A, B and C be co-sureties, A having paid the debt, would be entitled^to recover AT LAW a third from each of the others. An indorsement in full makes the instrument payable to the payee or hi- order only ; and he cannot transfer it otherwise than by^indorsemeut. A qualified indorsement is given to make a bill negotiabk;, without incurring per- sonable responsibility on the part of the indorser. A RESTRICTIVE INDORSEMENT is a restrictive direction appended to the payee's name, so that, into whose hands soever the bill may fall, it will carry a trust on the face of it. If a person, at the time a note is made, write on the back of it, " I guarantee the payment of the within note," he will be trea'ed as a joint and several prouiissor with the maker thereof, and not as mere guarantor. But if the indorsement bo made at;i subsequent time or be a guarantee of collection instead of payment, the indorser would be considered as a guarantor; a consideration, however, in these last cases should be expressed. If a note bo indorsed thus, " For value received I guarantee the collection of the within note," the guarantor would not be liable upon it unless the holder showed a diligent attempt to collect it. A bill or note cannot be indorsed for part of the sum remaining due upon it. If the bill has been partly paid, it may be specially indorsed for the part remaining due upon it. 213 An indorsee has a right to convert a blank indorsement into a special one, by writing •ver the signature the necessary words. OF THE TRAN'SFER OF BILLS AND NOTES. Bills and notes are divide! into two class-^s — Negotiable and Non-negotiable. Negotiable paper is that, the ownership of which may be freely transferred from one to aaother, giving the holder the right of action, without being subjoct to any offsets or lejjal defences existing between the original parties, if transferred before maturity for ;i valuable «onsideration, and received without any defect therein. Negotiable paper is made payable to the order of the payee, to the payee or order, to the payee or bearer, or to the bearer, or some other term of similar import, showing that ♦he maker intends to give the payee the right of transfer. Non-negotiable paper is that which is made payable to the person therein named, with- •Bt authority to transfer it to a third party. It may be transferred from one to another by assignment, or indorsement, but it remains subject to all offsets and legal defence^ existing between the original parties. The title to negotiable paper passes from one to another by delivery, if made payable to the payee or bearer, or to the bearer ; and by indorsement and d.ilivery, if made payable to order of payee, or to payee or order. Tiie title to non-negotiable paper passes by as-iign- Bent, or indorsement and delivery. A transfer by mere delivery, without indorsement of a bill or note made payable to the bearer, does not render the transferer liable. A transfer by delivery, however, warranto that the bill or note is not forged or fictitious. PRESENTMENT OF A BILL FOR ACCEPTANCE. Presentment for acceptance is necessary, if the bill be drawn payable at sight or at a lertain period after sight oi after demand. Till such presentment, there is no riglit of action against any party ; and generally, unless it be made within a reasonable time, the kolder loses his remedy against the antecedent parties. Presentment should be made during the usual hours of business. OF ACCEPTANCE. AocEPtANCfi, in its ordinary signification, is an engag ■ ^^^^^j. |^^ j,,^ ^i^,^^^^., ^^ p,,^ the bill wlion dae, in money. It must bj in writing, tliou ^^ ^^^ ^^^^.^^ ^^^,^^^ j^ „eeessary ; »ny written words clearly denoting an intention to acco^^^ ^,^^ ,^jjj .^^^ sufficient. An instrument drawn by A upon B, roquirin- f^j,^ ^^ ^^^ ^^^ ^^^^ ^^^^j. ^f q ^^ ^^.^t^iu sum at a certain time, is a bill op excuanuei o[^ draft, but after its aceept;ince by B it is usually called an acceptance. A bill is said to be honored when it is dul-y accepted ; and when acceptance or pay- ment is refused it is said to be dishonored. The hojder is entitled to rofjuire from the drawee an absilnte cngag -m nt to pay Mcordiug to the tenor of the bill, unincumbered with any coiulition or (lualifieation. If the drawee refuse to give the holder a general and unqualified acceptance, lie may treat the bill as dishonored. Notice must bj given of a failure in the attempt to procure an acceptance; otherwise, the person guilty of ncg\cct may lose his remedy upon the bill. \ '•**' iVH«,:hP 1 ■*'H'''^;'iiB 214 ON PRESENTMENT FOR PAYMENT. The contract of the acceptor of a bill, or the maker of a note, being to pay the amount "upon due presentment at maturity, in order to charge the indorsers, it is the duty of the holder to demand payment of the maker on the very day on which, by law, the bill becomes due ; and unless the demand be so made, the holder loses his remedy against the indorseri*, although the maker would still be liable. If A bill or note bj made payable at a particular place, the holder is bound to make a demand of payment at that place. In determining when a bill or note becomes due, days of grace, as they are called, must be allowed. These days in different countries, are as •follows: In Canada, tlie United States, Great Britian and Australia, 3; in the Nether- lands, none ; in Hamburg and Altona, 12 ; in Frankfort-on-the-Main, 4 ; in Paris, Bor- deaux, D.intzic and Russia, 10; in Geneva, 5 ; in liremon, 8 ; in Antwerp, Amsterdam, Cad'z, Lisbon, Oporto, Rio Janeiro, Rotterdam and Venice, 6 j in' Russia, 3 days are allowiid on all bills payable after sight. When a bill is drawn "' on demand," or if no time of payment be specified upon its face, it must be paid on presentation, no grace being allowed. If the day of grace fall on Sunday, or a legal holiday, the bill is payable the day after. Rills or notes made payable at a bank are generally left with that bank for collectiou If a bill or note is payable generally, without any specification of place, the holder may present it for payment to the acceptor or maker, wherever he may be found. A notice stating that a bill or note has been dishonored is effectual. Sending a ver- bal notice to a nurcliant's counting house in the ordinary hours of business, or to the house of a person not a uierc'.iant, is sufficient, though he be not at home. Sending notice by the post is sufficient, though it be delayed or be uotreceireJ through the fault of the post. PIlOCEEDliTOS ON NON-PAYMENT. * No Protest is required to be made upon the dishonor of a bill or note : although it is common to protest tliem for non-payment, especially in commercial towns. But in every case of the dishonor of a bill or U'lte, it Is the duty of the holder to give due notice thoroot" to all the prior parties on the note to whom he means to look for payment; for the holder •cannot recover against a party to whom he has fiiiled to give due notice of the dishonor. » OF PAYMENT. If tlie maker makes duo payment of a bill or note to a BONA FIDE holder it will ■amount to a complete disehar^(> of all other ])artics thereon. But when payment is made by an indor :er, !?uch indorser, as a geiierr.l rule, will retain his right to recover over against all the antecedent parties to the instruiuent until he ha? received a full indemnity ; such pay. ment, generally, discharges all the inilorsers subsequent to himself The party paying a bill cr note has a right to insist on its being delivered up to him. But when the bill or note is not negotiable, he cannot refuse to pay it until it is delivered ■up. V party paying any debt has a right to demand a receipt for the same,*and the party t) whom money has been paid is bound to give a receipt, when properly tendered to him for >ignature. * SCO form of protoKt uud explauation at pagG221. Interes pay interest A note paya wise, unless time of pay Whene interest," &( agreement o A note requires tha commenced Interes Any ru may be colk In case cent, per an Ifabil irought thei it ^as ill SI right to sue case the note Losin'' i upon him. It is ad the loss to tl up without < Public 1 with notice ( property in : Some ol Orders, Bills Bills of Lad Definiti beginning al An Ac with the cha A LSAS A Bon a certain eoi and when a;: A Moi 215 OF INTEREST. Interest is recoverable on a promissory note in which there is no special agreement to pay interest, from the time when the principal becomes due, or ought to have been paid. A note payable on demand carries no interest till a demand is made, either by suit or other- wise, unless there is an agreement to pay interest. A note not on demand, in which no time of" payment is mentioned, draws* interest from date. Whenever there is a special agreement to pay interest, that is when the words " with interest," &c., are contained in the note, it draws interest, of course, according to such agreement of contract. A note is said to be outlawed in six years from the time it becomes due. The statute requires that all actions founded upon any instrument or contract not under seal, must bo commenced within six years next after the cause of action accrued, and not after. Interest ceases to run after a tender is made, providing the bill or note is already due. Any rate of interest agreed to by the parties to a bill or note, and inserted therein, may be collected. In cases where interest is allowable on a bill or note, and no rate is specified, six per cent, per annum may be collected. OF A LOST BILL OR NOTE. If a bill or note be destroyed by fire or other accident, an action may, perhaps, be irought thereon. Bu<; if i L;U or note be lost, there can be no remedy upon it at law, unless it ^ras iu such a state, when lost, that no person but the plaintiff could have acf|uired a right to sue thereon, or the payee give tiie maker sufficient security to indemnify him in case the note turns up. Losing a bill implies negligence in the loser, and the results of negligence ought to fall upon him. It is advisable in case of a lost bill or note that the loser immediately give notice of the loss to the parties liable on the bill ; for they will thereby be prevented from taking it up without due inquiry. Public advertisement of the loss should also be given ; for, if any person discounts it with notice of the loss, that will be such strong evidence of fraud that he can acquire no property in it. OF COMMERCLVL PAPERS. Some of the different pipors used in business are Receipts, Drafts, Checks, Due Bills, Orders, Bills, Invoices, Account Sales, Leases, Bonds and Mortgages, Protests, Manifests, Bills of Lading, Releases, Contracts, Debentures, etc., etc. Definitions and forms of a number of these are given in a previous part of the work, beginning at page 56. An Account Sales is an exhibit of the sales of goo'ls disposed of on commission, with the charges incurred thereon. A LGASE is the written contract of agreement between a landlord and tenant. A Bond is a legal instrument by which the gi%'er binds himself to do, perform, or fill a certain contract by a stated time. When in your favor it is called a Bond Receivable^ and when against you, a Bond Payable. A MoBxaAGB is a pledge of property, either ro al or personal, by a debtor to a creditor. 'WWII I i ilf "m \i 216 A PROTEST of a note or a bill of exchange is a formal declaration made by a notary public under hand and seal, at the request of the holder, for non-acceptance or non-pay- Bient. A Manifest is a list of the cargo of a ship, with the mark, number, or description of each article or package, to be exhibited at the custom-house. A BILL OP LADING is a formal receipt subscribed to by the master of a ship, or other common carrier, acknowledging the receipt of goods intrusted to him for transportation, and binding himself, under certain exceptions, to deliver them in like condition as received ai the place and to the person named in the bill, or his assigns, for a remuneration of freightage. Debentures are promises to pay of the nature of notes but under seal. They are issued by Municipalities as security for loans. Coupons are promises to pay interest, and are attached to Debentures and Bonds. CHATTEL NOTES. We have seen that in order to constitute a Promissory note, it must be for the payment of money only ; if, then, a note be payable otherwise than in money, it is called a chatteIi not e. Chattel notes are not negotiable, and cannot be sued, except in the name of the payee. No days of grace are allowed upon them. It is the duty of the maker of a chattel note, payable in specific articles, at a place mentioned in the not«, to tender the articles at that place, and at the time it becomes due. If the maker neglect to make such tender, he will be liable to the payee to pay him the amount of the note in money. But if, on the other hand, the maker tender the articles mentioned in the note at the proper time and place, according to the contract, and the credi- tor neglects or refuses to receive them, the debt is thereby discharged ; but the right of property in the articles tendered passes to the creditor. The debtor may abandon the goods tendered ; but if he elects to retain possession of them he will be considered as bailee of the creditor at his (the creditor's") risk and expense. The relation of debtor and credi- tor would in such case be changed to that of bailor and bailee. There is a diflference .as to tender between port.ible and cumbrous articles. With respect to the former, a tender as above must be made ; as to the latter, it will bo sufiS- cient if the debtor oflFer to deliver as the creditor shall direct. FORMS OF CHATTEL NOTES. Belleville, Aug. 4, 1879. Six months after date, I promise to pay J. Smith, fifty bushels of good merchantable- wheat, to be delivered at the residence of said J. Smith, at market price. A. BROWN. Hamilton, Aug. 4, 1879. $76. Three months after date, I promise to pay J. Smith, at my place of residence in this city, seventy-five dollars worth of sound and merchantable winter apples at two dollars per bushel. A. BROWN, 217 RECEIPT. A receipt in full, though strong evidence, is not concluaivc ; and a party signing such Tcceipt will be permitted to show a mistake or error therein, if any exist. Receipts for the payment of paouey are open to examination, and may be varied, eiplained, or contradicted, by parole testimony. See Forms of Receipts, Page 61, FORM OF LEASE. This Indenture f made the first day of September, in the year of Our Lord one thousand eight hundred and seventy-four, IN pursuance or the Act eespectino Short Forms op Leases : lietween George Patterson, of the Town of Belleville, in the County of Hastings, Province of Ontario, Gentleman, hereinafter called the Lessor; And Robert Henry Porter, of the same place, yeoman, hereihafter called the Lessee : Witnesseth, that in consideration of the Bent, Covenants and Agreements herein- after reserved and contained, by the said Lessee, His executors, administrators, and assigns, to be paid, observed, and performed, the said Lessor hath demised and leased, and. by these Presents, doth demise and lease unto the said Lessee, His executors, administrators, and assigns, ALL that certain farm, piece or parcel of land, situate, lying and being in the Township of Sidney, in the County of Hastings' and Province of Ontario, and described as the South Half of lot number six in the First Concession of the Township of Sidney aforesaid, containing by admeasurement, one hundred acres, be the same more or less. Together with all the rights, members, and appurtenances whatsoever to the said premises belonging or appertaining, to have and to hold the said hereby demised premises, with their appurtenances, unto the said Lessee, his executors, administrators, and assigns, for and during the term of five years, to be computed from the first day of September, one thousand eight hundred and seventy-four, and from thjnceforth next ensuing and fully to be complete and ended, yielding and paying therefor unto the said Lessor, his heirs, executors, administrators, or assigns, the clear yearly rent or sum of Two Hundred Dollars of lawful money of Canada, to be payable on the following days and times, that is to say : in equal half yearly instalments on the first days of the months of March and September, in each and every year during the continuance of this lease. The first of such payments to become due aud be made on the first day of March next, and the last of such payments to be made in advance on the first day of March, preceding the expiration of the said term. ^nd the said Lessee, for himself, his heirs, executors, administrators and assigns, here- by covenants with the said Lessor, his heirs, executors, administrators, and assigns, in form aad manner following, that is to say : — To pay rent ; And to pay taxes : And to repair reasonable wear and tear, accidents by fire or tempest excepted : And to keep up fences and not to cut down timber : And that the said Lessor may enter and view state of repair, and that the said Lessee will repair according to notice : And will not assign or sublet, without leave : And will not carry on any business that shall be deemed a nuisance on .said premises : And that said Lessee will leave the premises in good repair : And also, that if the term hereby granted shall be at any time seized, or taken in execution, or in attachment, by any creditor of the said Lessee, or if the said Lessee shall make any assignment for the benefit of his creditors, or becoming bankrupt or insolvent shall take the benefit of any Act that may be in force for bankrupt or insolvent debtors, the then current half-year's rent ,MiiJ:J||i3!i|ii ll BhM :"i4i/« Geo. Sherry. ) JOHN SMITH. : Seal. STATUTORY MORTGAGE. This IfUlentUt'e, made (in duplicate) the first day of July, one thousand eight hundred and seventy-four, in pursuance of the Act respecting Short Forms of ^[ortgages ; HetweBtl Mary Wilson, of the village of Marmora, in the county of Hastings, wife of Eobert Wilson, and Robert Wilson, of the said village of Marmora, yeoman, heninat'ter called the mortgagors, of the first part, and John Smith, of the town of Picton, in the county of Prince Edward, merchant, hereinafter called the mortgagee, of the second part. Witiiessethf that in consideration of one thousand dollars of lawful money of Canada, now paid by the said mortgagee to the said mortgagors (the receipt whereof is hereby acknowledged), the said mortgagors do grant and mortgage unto the said mort- gagee, his heirs and assigns for ever : A.II and Situiulav, that certain parcel or tract of land and premises situate, lying and being in the township of Marmora, in the county of Hastings, Province of Ontario, being the east half of lot number eight, in the fourth concession of the township of .Maruio a aforesaid, containing by admeasurement One Hundred Acres, be the same more or le*s. Provided, this mortgage to be void on payment of one thousand dollars of lawful money of Canada, with interest at eight per cent, per annum, as follows : the said principal sum of one thousand dollars to be due and payable in three y>'ar.s from the date hereof with interest thereon from the date at eight per centum per annum, as aforesaid, payable yearly, and taxes and performance of statute labor. The said mortgagors covenant with the said mortgagee, that the mortgagors will pay the mortgage money and interest, and observe the above proviso. That the mortgagors have a good title in fee simple to the said lands; and that they have the right to convey the said lands to the said niortgagv^e : And that on d;'fault the mort- gi-igee shall have quiet possession of the said lauds free from all eneumbrancos : And that the mortgagors will execute such further a.ssuranccs of the said lands as may be re([uisite : And that the said mortgagors have done no act to incumber the said lands : And tliut the mortgagors will insure the buildings on the .said Imds to the amount of not less than nine hundred dollars currency ; And the said mortgagors do release to the said mortgagee all claims upon the said lands, subject to the said proviso. Provided, that the said mortgagee on default of payment for three months, may, upon giving one month's notice, enter on and lease or sell the said lands : Provided, that the mortgagee may distrain for arrears of interest : Provided, that in default of payment of tha mm iHiii E?i!.ii w' : 1 220 interest hereby secured, the principal hereby secured shall become payable : Provided, that ^ntil default of payment the mortgagors shall have quiet possession of the said lands : In witness whereof the said parties hereto have hereunto set their hands and seals. Signed, scaled and delivered ") : : in the presence of V MARY WILSON. ; Seal. \ Thomas Brown. ) : ; EOBERT WILSON. : Seal, j ASSIGNMENT OF MORTGAGE. This Iltdentuve, mad* (in duplicate) the first day of September, one thousand eight hundred and seventy-four. Set ween A. B., of the, &c., hereinafter called the Assignor, of the first part, and C. D. of the, &c., hereinafter called the Assiqnee, of the second pan. Whereas, by a Mortgage dated on the fourth day of January, one thousand eight hundred and seventy-two, E. *P. did grant and mortj;age the land and premises therein described to me, my heirs and assigns, for securing the payment of (HERE insert thi amount), ai\d there is now owing upon the said Mortgage (here insert the amount yet owing upon it). JS^OW this Indenture Witnessethf that in consideration of of lawful money of Canada, now paid by the said xissignee to the said Assignor (the receipt WHEREOF IS hereby ACKNOWLEDGED), The Said Assignor Doth hereby Assign and Bet over unto the said A.ssignee, his executors, administrators and assigns, All that the said before in p;irt recited Mortgage, and also the said sum of now owing as aforesaid. Together with all moneys that may hereafter become due or owing in respect of said Mortgage, and the full benefit of all powers and of all covenants and provisoes coa- tained in said Mortgage. And also full power and authority to use the name or names of the said Assignor, his heirs, executors, administrators or assigns, for enforcing the performauce of the covenants and other matters and things contained in the said Mortgage. And the said Assignor Doth hereby Grant and convey unto the said Assignee, his heirs and assigns. All and Singular, that certain piece (here describe the property as described in Mortgage). To Have and to Sold the said Mortgage and all moneys arising in respect of the same, and to accrue therqon, and also the said lands and premises thereby granted and mortgaged, To the use of the said Assignee, his heirs, executors, administrators and assigns, absolutely for ever ; but subject to the terms contained in such Mortgage. A.nd the said Assignor, for his heirs, executors, administrators and assigns. Doth HEaEBY Covenant with the Assignee, his heir.?, e^acutors, admistrators and a.ssigns, that the said Mortgage hereby assigned is a good and valid security, and that the said sum of ? is now owing and unpaid, and that he has not done, or permitted any act, matter, or thing whereby the said Mortgage has been released or discharged, either partly or in entirety ; and that he will, upon request, do, perform iind execute, every act necessary to enforce the full performance of the covenants and other matters contained therein. In Witness Whereof, the said parties have hereunto set their hands and seals, the day and year first above written. Signed, sealed and delivered, \ * If the mortgage has been ai«ii;ned, heie meutiou the day and date of rcgiatratiou of each a ja;gameiit thereof, and thn luuues of the parties. 221 Peovinck of Ontario, Tt) wit : I DISCHARGE OF MORTGAGE. To the Registrar of the County of Hastings. I, James Wiiliams, do certify that Peter Henry Cooper, merchant, of the town of Napanee, has satisfied all money due on or to grow due on a certain mortgage made by the jaid Peter Henry Cooper to me, James Williams, yeoman, of the same place, which mortgage bears date the first day of November, A. D. 1870, and was registered in the Registry OflBcc for the County of Hastings, on the second day of November, A.D. 1870, at twenty minutes |iast eleven o'clock, forenoon, in Liber B., for Thurlow, as No. 1765, and that the said mortgage has not been assigned. i= And that I am the person entitled by law to receive the money ; and such mortgage is therefore DisciiARaED. Witness my hand this first day of November, 1878. Witness : JAMES WILLIAMS. Robert Doyle. PROTESTS. The holder of a Promissory Note, Draft or Bill of Exchange, which has not been paid at maturity, and on which there is an indorser's name, should have it immediately protested by a Notary Public, who will notify such indorser by depositing to his address in the post office of the place where the note or bill was due and payable a notice of the protest. Should the holder neglect to notify the indorser immediately (or, if more than one indorser, all the indorsers) he will lose recourse against him. Drafts and Bills are also protested for non-acceptance, unless instructions to the con- trary have been given by the drawer (see page 139). Waive Protest. — This is the act of the indorser, who consents that the holder Deed not protest a note, and he writes on the back of note. " I hereby accept notice of non-payment, and waive protest. John Brown." 1. Promissory Note for non-payvient. On this first day of Septembar, in the year of Our Lord one thousand eight hundred and seventy -seven, at the request of the Merchants Bank of Canada, holders of the Promissory Note hereunto annexed, I, George Dean Dickson, a Notary Public for Ontario, by Royal authority duly appoiuted, did exhibit the said Note unto a Clerk at the Office of the Merchants Bank op Canada, at Belleville, where the same is payable, and there speaking to him, did demand payment of the said note, to which demand he answered " No Funds." * If the mortgage has been aasigiieJ, here lueutiou the Jay aud date of regiatratiou of each asHigumeut thereof, aud the names of the parties. It Notices mailed the iBt day of September, A.D. 1877. P.Q. Wherefore I, tlie faid Notary, nt the request aforesaid, have prot^Kteil. and do heniby solemnly protest, as well against all the parties to the said Note, as against all other persons to whom it may concern, for all interest, damages, costs, charges, expLinses and other losses suffered or to be suffered for want of pay UK-nt ot the said Note ; and afterwards on the day and year mentionod in the margin, I, the said Notary Public, did serve due notice ac- cording to law, of the said presentment, non-payment and protest of the said Note upon the several parties thereto, by depositiug in Her Majesty's Post Office at Belleville, being the nearest Post 50 CtB. Office to the place of the said presentment, letters containing such notice, one of which letters was addressed to each of the said parties severally, the superscription and address of which letters 04 " are respectively copied below as follows, that is to say : 50 (I Paid. John Smith, Esq,, Belleville. Paid Messrs. J. McKay & Co., Montreal. $1 04 ,, J ' Paid, Paid, In testimony whereof, I have hereunto set my hand and aflBxed my Seal of Office the day and year first above written, GEORGE D. DICKSON, : Notary Public. : SEAL. Protest, Postage, Notices, Protest, Postage, .Notices, In testimc (lay and year 1 On this fi .ind seventy-foi CHANGE herev by Royal auth the Bank of M did demand pa 2. A Bill for Non- Acceptance. On this first.day of September, in the year of Our Lord one thousand eight hundred and seventy-four, at tlie request of 'J iiE Bank op Montreal, holders of the Bill op Exchange hereunto annexed I, Charles William Brown, a Notary Public for Ontario, by Eoyal authority duly appointed, did exhibit the .said Bill unto John Smith, Esq., at his place of business at Bell*ville, and ^here speaking to him did demand acceptance of the said Bill, to which demand he ansv?e.'ed, " I will not Accept." Wherefore I, the said Notary, at the request aforesaid, have protested, and do hereby solemnly protest, as well against all the parties to the said Bill, as against all other parties whom it may concern, for all interest, damages, costs, charges, expen.ses, and other losses suffered or to be suffered for want of acceptance of the said Bill ; and afterwards, on the day and year mentioned in the margin, I, the .said Notary Public, did serve due Notice ac- - cording to law, of the said presentment, non-acceptance and pro- test of the said Bill upon the several parties thereto, by deposit- ing in Her Majesty's Post Office at Belleville, being the nearest Post Office to the place of the said presentment. Letters contain- Notices mailed tbe lat day of September, A,D, 1874. Notices mailed lil day of SepteE A.D. 18' Protest, . Postage, . Notices In testim day and year : P.Q. 223 inpsuch notice, one of which Letters was addressed to each of the said parties severally, the Superscription and Addnss ofwhicb Letters are resjxictively copied below as follows, that is Ut say : Paid, John Smith, Esq,, Belleville. Paid, Messrs. o. McKay & Co., Montreal. Paid, Paid In testimony whereof, I have hereunto set uiy hand and affixed my Seal of Office the day and year first above written. CIIAS. W. BROWN, Notary Public. Protest, . fiOcts Postage, . . 04 " .Votices, . 50 " $1 04 Seal. Notices mailed the l3t day of September, 3. A Bill for Xon-Puijment. On this first day of September, in the year of Our Lord one thousand ei<:;ht hundred and seventy-four, at the request of the Bank of Montheal, holders of the Bill of Ex- change hereunto annexed, I, Charles William Brown, a Notary Public for Ontario, by Royal authority duly appointed, did exhibit the said bill unto a clerk in the office of the Bank of Montreal, at Belleville, where the same is payable, and there speaking to him, (lid demand payment of the said Bill, to which demand he answered, " No Funds." Wherefore, I, the said Notary, at the request aforesaid, have protested and do hereby solemnly protest as well against all the parties to the .said Bill, as against all other persons whom it may concern, for all interest, damages, costs, charges, expenses, and other losses .suffered or to be suffered for want of payment of the said Bill ; and afterwards, on the day and year mentioned in the margin, I, the said Notary Public, did serve due notice, according to law, of the said presentment, non-payment and protest of the said Bill upon the several parties thereto, by depositing in Her Majesty's Post Office at Belleville, being the nearest Post Office to the place of the said presentment, Letters containing such notice, one of which Letters was addressed to each of the .said parties sever- ally, the Superscription and Address of which Letters are res- pectively copied below as follows, that is to say ; Paid, John Smith, Emj., Belleville. Paid, ^lessrs. J. McKay & Co.. Montreal. Paid, Paid, In testimony whereof, I have hereunto set my hand and affixed my Seal of Office, the day and year first above written. CHAS. W. BROWN, : Notary Public. \ Seal. A.D. 1874. P.Q. Protest, Postage, Notices 50 cts. 04 " 50 " $1 04 S«' mi im 'm <'U:\ 224 NOTICE OF PROTEST, To John Smith, Esq., BellcTille. BtllevilU, September 1, 1878. Take notice that a Promissory Nc-e, dated on the twenty-ninth day of August, 1877, for the sum of 8400, drawn by yourself in favor of J. McKay & Co., or order, payable one year after the date thereof, at the office nf the Merchants Bank, in Belleville, and endorsed by J. McKay & Co., was this day presented by me for payment at the said Bank, and that payment thereof was refused ; and that the Merchants Bank, the holders of the said Promissory Note, look to you for payment. Also, take notice that the same was PROTESTED this day by me for non-payment. Your obedient servant, GEORGE D. DICKSON, Notary Public. Vuki and Numbe MANIFEST OF STEAMER " PASSPORT,'" THOMAS SMITH, MASTER. FROM HAMILTON TO MONTREAL, JUNE 1, 1877. Consignees. Destination . Marks. Articlei. J. Taylor & Co., Montreal, J.T. &Co. 3n boxes and 46 bales. (1 « (i J.T. 600 barrels of Salt, J. C. Towerfl, CI J.C.T. 100 " Fork. S. S.uiiiw & Co., t( S. S. Furniture. Wilxjii & Co., a W. & Co. 25 boxes and 10 trunks. J. l.aiidis & Co., ," J. L. 1*20 barrels Apples. D. B. Garreil, « D.B. C. 4 Trunks. C. K. Hamilton, u |H, ii.O presents do grant, release and quit claim unto the said party of the second part, his heirs auJ ' assigns for ever, all the estate, right, title, interest, claim and demand, whatsoever, both at I hiw and in equity, or otherwise howsoever, and whether possession or expectancy, of, iu, and ; to, all and singular that certain parcel or tract of land and premises situate, lying and being, e day and year first above written. Signed, sealed and delivered ) HENRY SMITH. [l.sI. in the presence of f ROBERT T. BRUCE. rL.sJ. S. G. Beattt. 3 ROBERT JONES. [l.sJ. • AGREEMENT FOR BUILDING A HOUSE. This Indenture made (in duplicate) this day of , in the year of Our Lord one thousand eight hundred and seventy-seven, between A. B., of, etc., and C. D., of, etc. Witnesseth, that the said C. D., for the consideration hereinafter mentioned, doth for himself, his heirs, executoni and admin istr iters, covenant with the said A. B., hi? executors, administrators and assigns, that the said C. D., or his assigns, shall and will within the space of (here insert the time) next after the date hereof, in a good and work- manlike manner, and at his own proper charge and expense, at (here insert the place), well and substantially erect, build and finish one tjouse, according to the draught, scheme and explanation hereunto annexed, with such ?tone, brick, timber and other materials, as the said A. B. or his assigns shall find or provide for the same. In Consideration whereof the said A. B. doth, for himself, his executors nnd adminis- trators, covenant with the said C. D., his executors and assigns, well and truly to pay unto the said C. D., his executors and assigns, the sum of — of lawful money of Canada, in manner, following, viz.: , part thereof at the beginning of said work, more, another part thereof, when the said work shall be half done, and the remaining , in full for the saiil work when the same shall be completely finished : And also, that he, the said A. B., his executors, administrators or assigns, shall and will, from time to time, as the same shall be required, at his and their own expense, provide stone, brick, timber and other materials necessary for making, building and finishing the said house. And for the performance of all and every the articles and agreements above mentioned, the said A. B., and C. D. do hereby bind themselves, their executors, administrators and assigns, each to the other, in the penal sum of firmly, by these presents. In Witness Whereof, &c. WILL. When it is convenient to employ a lawyer, or some one acquainted with legal forms, to writ* a will, the .services of such a person siiould be procured. But this is not always convenient. Therefore, every person who can write a legible hand should learn to draw a will in proper form. If he never has occasion to use this knowledge for himself, he may be called on to perform this kind ofiBce for a friend or neighbor suddenly thrown upon a bed of death. Every pupil, before leaving the public school, should bo taught the form and legal requisites of a will. The Testator is the person who makes and signs the will. The Donee, also called Legatee or Devisee, is the one who receives property by the will. He should not write it, nor in any way procure the writing of it, nor be a subscribing witness to it. The Executor is the person to whom the execution of the will is intrusted by the testator. ' * 229 IJI t A will requires two subs.'ribing witnesses, anJ they should sign their names in the presence of each other, and in the presence of the testator, and at his request. The witnesses to a will should write their several places of residence opposite their respective names. The signature of the testator must be at the foot or end of the will, and where there are several sheets of pap^r it is better for the testator and witnesses to sign every sheet. A seal is not essential, though the practice is to put a seal to the testator's signature. The date should never be omitted ; for, though it is not essential to the validity of a will, it is evidence of the time of its execution in case another will should be found. A will made b}' a person '^nder twenty-one years of age is invalid. The marriage of the testator generally revokes a will. FORM OF WILL. 1, William Henry Brown, of the Town of Belleville, in the County of Hastings and Province of Ontario, Canada, being of sound mind and memory, and considering the uncertainty of this frail and transitory life, do therefore make, and ueclare this to be, my last Will and Testament, that is to say : First. — After all my lawful debts and funeral and testamentary expenses are paid and Jischarged, I bequeath to my wif -, Laura Brown, the dwelling house and land connicted tlierewitli, wiiich we iiuw occupy as a homestead ; and all the furniture and household ^'oods, including pictures, books, linen, china, plate, provisions, chattels, and effects (other than money or securities for money), which shall at my death be in or about my dwelling- house, or the out-buiUlinus or i^rounds thereof. I also bequeath to my said wife the sum of six thousand dollars cash, to be paid to her within one cidendar month after my death, without interest. Second.— I give to my daughter Jane, four thousand dollars cash, and thirty shares ill the B VMv oi' ilovraE \.\.. tor Iit -tolo usj an 1 tor the u--e of her-heirs at her discretion. Thirtf. — I give to my son William all my rvvl estate in the Township of Thurlow, Coimty of Hastings, Province of Ontario, and all the live stock and implements used for farming purposes in connection with the samo. Fiiurfh. — The residue of my property, real and personal, I give and bequeath to my «)n Tlinuias. Fl/th. — I hereby appoint my son William to be executor and my wif>; Lxura execu- trix of this, my last will and testament, hereby rivoking ill fonn.ir wills by mc made. And Iai'I'oin'T my sail wife an 1 llohort Henry Smith, of the Town of BulleviUe, aforesaid, guardians of my infant cliiWren. In Witness Whereof, I. the testUor, have hereunto set my hand and seal, this first Jay of December, m the year of Our Lord one thousand eight hundred and seventy -seven. Signed, .scaled and delivered by the testator, in the " presence of us, who (in his presence), at his request, and in the presence of each other, have hereunto subscribed our names as witnesses. Thomas Strong, of Cobourg, Ontario. Peter Farnor, of Belleville, Ontario. WILLIAM H.BROWN :seal' y I I 230 POWER OF ATTORNEY. Know all tnen by these Presents, that I (insert name here), of in the County of and Province of Ontario, for divers good causes and considerations me thereunto moving, have nominated, constituted and appointed, and by these presents do nominate, constitute and appoint (insert name here) my true and lawful Attorney, for me and in my name and on my behalf, and for my sole and exclusive use and . benefit, to demand, recover and receive from all and every or any person or persons whom, soever all and every sum and sums of money, goods, chattels, effects, and things whateoever which now are or is, or which shall or may hereafter appear to be due, owing, payable or belong- ing to me, whether for rent or arrears of rent, or otherwise in respect of my real estate, or for the principal money and interest now or hereafter to become payable to me upon or in respect of any moftgage or other security, or for the interest or dividends to accrue or become payable to me for or in respecfof any shares, stock or interest which I may now or hereafter hold in any Joim Stock or Incorporated Company or Companies, or for any moneys or securities for money whinh are now or hereafter may be due or owing or belong- ing to me upon any Bond, Note, iJl'l or Bills of Exchange, balance of Account Current, consignment, contract, decree, judgm 11 im ■■'vf.;i ill NOTK.— The ab)veta a General Power of At:oruey, n Spaolal Power of Attorney would com'or limited poA'er, for Instance, to perform one act only. 232 W o i?:; >> t 1^ "* o 3 6 J <« 5 «) 9> 2 ^ H '^ » «) Oi ^ 1 ^ 2. ^ o 2 *' 1* "as .5 'S 4 ? ■g §1 8 - iJ o ^ a ^ S ® .^ -t: i c >• s -? .^ ri 2 *^ ^ § . . u. z o y, ^;; s UJ r- Q - Oc •" ^ -^ -^ c < £ < - £ ^ 2 »: so — — , ;j =c ~ r-< S5 O — -a S i- _ ^- *— f^ ^ t^. ^ ui = „ a-» 1 1- o - rj ^ •« S O v g. !« = -S 5^ •5 o a ^:j o ^ t « c3 d. S -« O -"^ ^ ■^^ -i "* OJ O 3 :;^ r^ '71 '^ "v .^ >- f o •> ^S *; 5 ?: o 05 «; Q ri U S («• £•-5 a S *' 3 o .9 W ,S S. >. 5 r •; 5 S = ;? S i !--rSii uSt ajy.S 2 sSs?^=i- CCS cc ca :; ■*- -* cS »- -*i » £C«5- e^t. 3 "S H , 2 t ^-f'S '"-'•'! 9 1 fc H Ct; as"^ i = ?: 2 - ix i Vr^. 1 ,^ - ^ Sh r-- =■ ■■y. - O ce M £ = • -.C^.-- i:"?>5l &^h C?, c--v= _3 BcSc^;; ^ >. I- rt rt »5.i =|l=2 t, = >. 5 ^ -L. - t C .S5' ^1 HI) 2 ., t~..a O e" < '^ joes' - >>2 c .. ts-!r . ^ o a V5 s.s5i.; ; = y 5 i C ^S S l-s^fii ? ":^5WS= _K. 1S.= o .2 5 iS 2 "* _'-s ii H s-= „c; J,-:; 3 .. "- .^ 2; 2 X - c *q ' i 0) 5-3 . , '5 " » h -'"■ "! S O T > — = K i: ^ *■ 1- ^ * ■" _ ri SI'S - o.a oil _ ■ — ^^ M — "x -* 3 - — 3 i' •; o « ^ J*- 2 o ;: o -•^«-ia^!? O >^^i :Si5, < »)j;"'="'-o r . — Z2 tin ^ ij ff H 570 = •Mr"* »- £ r _e> ft «w j: jrf t- - JS / ■^>-=i- — i ; •i ? = i' - I > ■- — .- -J (5 - #^ ^ < 2"=^ = i" 5" "3 5 J 1^3 ', 5 ~ X r- *• ~. ? r, ? i' 3 jT _ - « a5 rt o J oS 233 ■="o "cf-?, u - .s c — o - — u Pi; ? i?S 2""." • P ^ ii ** ^ — ^ *- ; 5 'slJe^? = >^ ? i a.^:V Hi !^:2 - .s ; — := — - -" £ «5S«« ^ ^ ?f r--^ S^ I i ! >5 ir I- r £ - Z S - 9 -J a _ •; ■s r* X H /■ ~ ^ ^ 5 — .- , if 1 4)T'; ■^— Is . '!S5gi-r>; ^ ^,u s-Si . a •-' •* f s »• OS in 8 •-i.:.-^?? O o is ii=u - - 'J - j 6 ji i 5-i« : s^tiji; - — X r ■yl < =^ ^ - =■ ' = .5 ; ¥ ^' : 3 = ^ >>V ^ 9 S ^ ** ? z: - " X 2 i-'^3- — — * — 3 X ^ ;^ — K fc. . c^-o o $•'" w - i) * - : j: .- is = >• = >. = u = •_ -3 ~ •-- i; « £ e ^u -«v- ^ = ^■3 is 55 - = s b a =* i i^, j;^ -ja Us^S X-5 s S.S e5 j;^s onco been issued, upon it ? What is the drawer's undertaking in a Bill of Exchange ? What is the duty of the payee, if the bill remain in his possession ? What is the acceptor's undertaking ? How is the acceptor's liability discharged ? What is an indorsement? Name five diiferent forms of indorsement, and give an example of each. If a note indorsed by several parties lie dis- honored, against whom has the iiolder a right of action. If the note be paid by the first indorser, to whom must he look for the recovery of the amount ? Has the first indorser, under any circumstance, a right of action against the subsequent indorsers ? What is the object of the several forms of indorsement ? \Vhat is the distinction between negotiable and non-negotiiible paper ? How is negotiable paper transferred in order to give tlie holder the right of action. Is it necessary to present a bill for acceptance ? What is understood by a bill being honored and dishonored ? W^hy is it necessary to sjive notice of a bill being dishonored ? What is necessary in order to hold the indorser of a bill or note ? AVhen is a note drawn on demand or without a specified time, payable ? If a note is dishonored how should notice be given ? Has the party paying a bill or any other debt a right to demand a receipt ? Under what circumstances may interest be collected on a note ? How many years has a note or other debt to run before it becomes outlawed ? Can a lost bill or note be recovered, under any circumstances ? Name some of the diiferent papers used in business, aside from bills or notes. Define some of these papers. What is a Chattel Note ? Give foi-ms of chattel notes. If a receipt be given in mistake, does it necessarily bind the giver ? Name the different forms of time drafts. What is necessary before a draft becomes the obligation of the person on whom it is drawn ? In what cases are drafts used? What form is adopted in accepting a draft? When is the date of accepUmce required ? What are cheques, and wherein do they differ from bills of exchange ? What is necessary to make a legal seal ? Define the following terms used in connection with a will: Testator, Donee, Leo\tee. Devisee and Executor. How many sub- scribing witnes.ses does a will recpiire ? Where should the signature of the testator bo placed? What effect has the marriage of the testator upon a will? What is said of a will. made by a person under twenty-one years of age ? CORRESPONDENCE. mm It should not be forgotten that a valid and binding contract can be made by the inter- change ot letters if a direct offer be unconditionally accepted. In iill composition, thkee things require attention : the thoughts, their arrangement and the language employed. Qf all species of composition, letters are the most universal and important; yet among the millions writtjn annually how few could bear criticism : Errors in spelling, grammar, penmanship and arrangement are generally attributed to haste, which is considered as ample apology for every fault; when, in reality, the writer is not qualified to write a letter correctly under the most favorabl ■ circumstances. In no way can a person .so command himself to the favorable regard of others, or impart to them so just an idea of his mental qualities, as by writing. Says Lord Collingwood : " When you write a letter give it your greatest care, that it may be as perfect in all its parts as you can make it. Let the subject be Sense, expressed in the most plain, intelligible, and elegant language you can command. If, in a familiar epistle, you should be playful and jocular, guard carefully that your wit be not sharp .so as to give pain to any person; and before you write a sentence, examine, that there be nothing vulgar or inelegant therein. Remember that your letter is a picture of your mind, and tlio.se whose minds are a compound of folly, nonsense and impertinence are to blame to exhibit them to the contempt of the world, or the pity of their friends. To write a letter with negligence, without stops, with crooked lines, and great flourishes, is inelegant. It argues either great ignorance of what is proper, or great impudence towards the person to whom it is addressed. It makes no amends to add, as an apology for having scrawled a sheet of paper, that you wrote with bad pens, because you should have good ones ; or plead want of time, for nothing is more important to you, or to which your time can more properly be devoted." The essential requisites of any letter are : first, correct .Spelling ; second, legible Writing ; third, good Grammar ; and fourth, proper Arrangement. 1. Correct Spelling is a very rare accomplishment among the majority of people. Perhaps there is no part of our education, the neglect of which receives so I'ttle charity as this. Yet, when we look for that .system of classification and application l^' general rules and principles in this, which is found in every other branch of study, we find that EXCEPTION soon becomes the rule, and the pupil is obliged to rely upon memory and unremitting practice for the orthography of almost every word. We Spell only when we Write. — Therefore spelling is best acquired by constant practice in copying from good authors, writing from dictation, or composing and correcting original essays. These exercises are, at the same time, an efficient training in penmanship and grammar. Copying from a printed page should form a daily exercise, until entire pages can be correctly transcribed from dictation. Such an exercise gives practice in reading, translation, spelling, punctuation and the use of capitals. It also cultivates a habit of accuracy in transcribing, which is a most desirable ao(j[uisition. N«fi!>'!! :! "■ ■■!5 286 Jt is safe to predict that not one in fifty, who has never attempted it, can copy aa entire page without a mistake. Ljt those who doubt try it. 2. Penmanship. — Puumauship is to a letter what dre,ss is to the appciirance of an individual ; and no one can deny the deciding influence of drus.s. Nor does tlie iittiicot a gentleman become him less because knaves and fools sometimes afisume the same. Nevtr apologize for bad penmanship, especially where it is habitual. It is far from refresluuL; to the recipient to read such uninteresting commonplaces. Either write respectalily, or suliuiit to such reflections as your bad writing must inevitably suggest, whether excused or not. Culpable indiff'erence, laziness, or, to speak a little more mildly, indolence or dowiirij>ht carelessness, are, in nineteen cases out of twenty, the only obstacles in the way of a good, fair, legible handwriting. A little earnestness, industry, carefulness and perseverance will overcome all difficulties. Elegant penmanship is not the subject here proposed ; but a good, readable, business liaiid- writing. In accomplishing this, three essential particulars must be observed, viz. : Leoibility, Uniformity and Spaces. 3. Grammar. — Remember, letter-writing is talking on PAPEa ; but we must talk on paper more carefully than many of us are accu-itomed to talk with the voice. In eoiuiiiuu conversation, redundancies, bad graiuuiar aiil iu.'lagant expressions, if they do uoi puss unobserved and uncriticiseJ, may at least be excused aud soon forgotten ; but in a letter they remain permanent witnesses against us. Make it a rule never to commit to paper espre.ssi(jns you woi'ld be ashamed to acknowledge should they confront you afterward. If spoken vulgarisms are bad, what shall we say of such expressions put upoa paper and sent to one's friend ? Think of the letter you are writing as a record which may be preserved by your friends long after you have ceased to be among them ; and commit nothing to the perma- nence of ink and paper that can possibly throw a shade upon your memory. 4. Arrangement. — In all letters, whatever be their cla.ss or subject, attention must be paid to certain conventional forms for arranging the several parts of which they are composed. Every letter is regarded as consisting of six essential parts : 1. The location and date. 2. The name and address of the person to whom it is written. 3. T.ie complimentary address. 4. The body of the letter. 5. Complimentary closing;, (j. T lie signature of the writer. The location and the date should both be written on the same line, near the right upper corner of the sheet. The name and title of the person to whom it is addressed follow on the next line or two below, near the LEFT side of the sheet, and the address on the line underneath a little to the right. The co)np'imjntary address follows on the line below the address, ending near the siiddle of the sheet. The body of the letter should be commenced very nearly under the last letter of the complimentary address. The complimentary closing should begin very nearly under the l&ft letter of the body ; and the signature very nearly under the last letter of the complimentary closing, as illus- trated in the followinar : 287 FORM OF A LETTER, (Location and Date.) Belleville, Nov. Ist, 1878. (Namo and title of the person addressed.) John Smith, Esq., (Address.) PicfOH, Oftt, -, for instance, the father is addressed as Kobert Jones, Sr., or Senior, meaning older, and the son as Koburt Jones, Jr., or Junior, meaning younger. There has grown up, in tliis country, an array of titles and addresses which, though perhaps not so numerous or cumbersome as those of Eumpe, are nevertheless guarded as- strictly from violation bylaws of etiquette. -Many of these titles, or e.xpressions of respect, are clearly traceaVjle to tlieir foreign origin. For example, Mr. from Master; Mrs. from. .Mistress ; Miss from the Freuch Demoiselle ; Esq. from Esquire, is a very common title of respect in this country and in the United States : it is perverted from its original significa- tion, and applied almost indiscriminately to all classes of males. Originally a title of respect, it now signifies nothing at all. Yet its omission might, in some case, give oft'ence, tliough the person addressed could lay no claim to it. In England, several hundred years ago, there were five classes of dignitaries to whom. this title belonged, viz. : 1. The oldest sons of knights, and their eldest sons in perpetual succession. 2. Such as were created Esquires by the King's letters patent, and their eldest sons. 3. The eldest son of younger sons of peers, and their eldest sons in perpetual succes- sion. 4. Such as were Esquires by virtue of thefr oflBces, as Justices of the Peace, and others who bore any office under the Crown. 5. Later than the origin of these clas.ses, and it is said, by u-uipntion, the members of the legal profession were universally recognized by this title. But they have enjoyed it so long that it has become, both in England and in this country, an established dis- tinction. The word gentle.man was originally significant of wealth and education, and that the bearer of the title was able to live in idleness, or, at least, without personal exertion to support himself. The historic significance of the term was long since lost through it* indiscriminate apf^' 'nation to all men, whether boors^aud rowdies, or persons of culture and refinement. I™ *iiy'^ 'i 1*1 240 When a word becomes applicable to all men, it necessarily ceases to be in any sense complimentary. This is precisely the condition of the two words Esquire and Gentlemen, as used this country, in business or other correspondence. Titles may be divided into two classes, viz. : Titles of respect as : Mrs., Mis.--, Mr., Esq., &c., and professional titles, as Dr., Rev., LL.D.. &c. As a general rule, two titles of the same class should not be applied to the same name. " Mr. Wui. Brown. Esq.." should be either '' Mr. Wm. Brown " or '• Wn.. Brown. Iv(i.," The fir.- nnt uniform in the application of professional titles, .some preciidiuii and others following it. For instance, Dr., Rev., Hon.. and military titles should precede the name, whik' M,I).. A. .M., LL.D., &c.. should follow it. It is considered more respectful to write titl.s nf high rank in full tlian to abbreviate them. Addre.ss. — The address of the person to whom you are writing should always bj upon the .sheet containing the body of the letter, so that, in case thelettar becomes separated from the envclopj, it may not bj lost for want of direction. Custom has of late favored plasiii'j; both the name and address at the head of tlie letter instead of at thj close, as I'ornierjy. This arrangement appears mor.- sensible, as in case it is received by the wrong pjrson through mistake, it can be discovered b'fore reading the letter through. This plan also facilitates addressing the envelope when several letters are written at the same time. Co.\iPi.i.MENT.\RY Address. — In writing to a gentleman with whom you have little or no acquaintance, the address shmild be simply " Sir ; " if you are on familiar terms"' Dear Sir " may be used. "My Dear Sir" implies still greater intimacy. In addressing a lady not a relative, "• Madam " or " Dear Madam '' may be used according to the degree of intimacy. Unmarri'^d ladies are sometimes addressed as '• Miss," *• i)ear Miss." " Dear Mary," and so forth, according to the degree of intimacy. In addressing a firiu or association of in lividaals, comprising a Comm'ttoe. B lard of T.'ustees, or other body, " Gentlemen," or " liadies," should be used according to the sex of those comprising it. Body op the Letter. — The body of the letter should be made up of paragraphs. Every change of subj ;t should be indicated by commencinu' a new jiaragraph to the lelt of the middle of the sheet, and ab JUt an inch fartiier to the right tlian the other lines. The opening paragraph should always be short, and unfold, if po.ssible, the object of the letter. If it is a reply, it should announce the receipt and date of the letter to which it is .an answer, and shonld give a brief statement of its .subject matter, tliat all cau-ie of mis- apprehension may be explained or removed, thus : " Your favor of the 1st inst,, relating to the sale of your pens in this city, is received, &c." If the letter is one of business, or inquiry, dispose of the first ; and unless on familiar terms, uever introduce other matters. If the letter is to be short, it should be commenced so as to leave an equal space above and below. No error is more frequent among beginners than the use of the small i instead of the capital /in writing of themselves. Tiiis pronoun is of frequent occurrence in letter-writing, and such a display of ignorance should be carefully guarded against. The first le I name applied t [iiietry ; the woi tipal words in r The names The tender prides himself o lated, or when Do not beg after clause, loo: do not mean, ini (-O.MPLIME dress, usually ci degree oi famili; '■ Yours truly," The closinjj smoothly with t Signature sometimes suppc Different ta densed hand, ba( signature, if it b of being counter once adopted she would be difficul I 'or arrangement < as i.s the case wi to pass unobserve In general, < as when spoken once, without a i Two person per.sons are very When cerei the first page, a bringing the sigt the right-hand p of the letter upoi It is consid therefore, unless In letter-wi 241 The first letter of every sentence, title, proper name, or adjective derived from it, every name applieil to the Deity ; every quotation of the words of another ; every line in poetry ; the words I, and Oh, the days of the week, months of the year, and the prin- cipal words in rules and headings, should be capitals. The names of the seasons should not be commenced with a capital letter. The tendency among beginners is to use too may capitals, especially if the writer prides himself on his dexterity in making them. Except in one of the cases above enume- rated, or when in doubt, use a small letter. Do not begin a sentence till its wording is clearly fixed in the mind. Ncvt^i add clause afttr clause, loosely linked on with '' ands" and '• buts," till you are led to say what you do mit mean, instead of liaving expressed the thought intended. (-O.MPLIMENTARY CLOSING. — The Complimentary closing, like the complimentary ad- dress, usually consists of a phrase more or less formal in its character, regulated by the degree ol familia.'ity between the parties. It generally consists of some such expression as : '■Yours truly," " Yours respectfully,'' " Y'^our sincere friend," &c. The closing sentence of the body of the letter should be framed so as to connect smoothly with the complimentary closing, as : " Hoping to hear from you soon, 1 am, Yours respectfully, JOHN SHOllY\" Signatures. — The importance of an appropriate signature is much greater than (s sometimes supposed. Different tastes will suggest diifercnt styles, such as the bold coarse hand, the con- densed hand, back hand, fine hand, etc.; but it matters little what style is chosen for one's siiriiiiture, if it be suited to the sex of the individual and length of the name. The liability of bL^ing counterfeited should be carefully guarded against. To this end, the signature oiicf adopted should not vary, so that continual practice may give to it a character which would be difficult for an unpracticod hand to counterfeit. Some peculiarity of combination '•or arrangement of the parts may be observed. When the temptation to counterfeit is great, ;is is the case with the signature of person in important offices, some private mark, likely to pass unobserved by the common eye, is frequently resorted to as a security against forgery. t^% «i:. P ETIQUETTE OF LETTKll WRITING. In general, every letter requires a reply. It is as necessary to answer when writti ;i t<> as when spoken to. Letters considertd disrespectful or insulting should be returned at once, without a reply. Letters of business or courtesy should receive prompt attention. Two persons should not write \n tlie sime letter, unless in family letters, or when both persons are very intimate with the eorrespoiidcnt. When ceremony is required, letters siiould be commenced 9 little above the middle of the first page, and, if there is not sufficient room to tinisu it on the first page, without bringing the signature too near the bottom, it may be finished on the inside of the sheet, on the right-hand page. In such cases there should be at least two or three lines of the body of the letter upon the next page. It is considered impolite to write other than business letters on a half sheet of paper, therefore, unless from necessity, always use a whole sheet. In letter-writing, be particular and use a sheet appropriate in style and size to the pur- I..A.B 242 pose for which it is employed. For example, it would be considered bad taste to write a Jjusiness letter upon colored note paper. The judicious selection aid use of paper should be •carefully atttended to. Envelopes should be either bufif, white, or some other plain color and quite thick. Avoid all fancy patterns and colors. PosTCRiPTS are sentences inserted after the body of the letter is finished. They indi- •cate either haste or thoujilitlessness, and should, in general, be avoided. Writing around the margin of a letter should likewise be avoided. Letters of recommendation or introduction should not be sealed when intended to be delivered by the person to whom they relate, as he ought to know the contents. Folding. — The folding of letters is a very simple operation. Whether the sheet be a «ingle or double leaf the process is the same, viz. : 1. Turn over the bottom of the sheet iiill its edge lies upon the edge at the top, making a fold in the middle. 2. '^"'ng the right end of the folded sheet to your body, and fold over about one-third of the K r towards the top. 3. Finally reverse the ends of the sheet, and fold as much of the upper part in the opposite direction. Superscriptions. — The superscription of a letter means the address of the person to "whom it is sent, written upon the envelope inclosing it. The form of arrangement should co»*respond with the same address at the head of the letter. Care should be taken that it is distinctlj' written. From neglect of this precaution, hundreds of letters are sent every mouth to the dead letter ofiice. Commence the super- .scription about the middle, and to the left of the centre of the envelope, so as not to crowd upon the right edge or bottom. Bsmre writiBg the superscription ascertain if the envelope is right edge up. It is in this position when the part on which the gum is usually placed folds under from the top of the envelope. Never scratch or draw faint lines upon which to write the superscription. Stamping. — The customary spot for placing the requisite postage stamp is on the right hand upper corner of the envelope. For business letters use No. bh or 6 envelope, and observe the following FORM OF SUPERSCRIPTION. STAMP. Henry A. Muiulell, Esq., Hamilton, Out. PARTICULAR LETTERS. Letters are generally classed under two heads, viz. : Letters of Business and Letters -of Friendship. It is not our intention to treat of the latter, although the foregoing remarks apply to both classes. Limited space prevents our offering more than a few examples of the former. 243 Letters of Business. — The oharactji-istics of a business letter are BaEViTY and !U';i I il^iii m^m lit m PRACTICAL COMPUTATIONS. It is not our purpose, in the small space we have to devote to the subject of Arith- metic, to present anything more than a few rules, on dififereut subjects, that will be found practical by every business man. By the tables, as given in most of our school arithmetics, numeration is carried only to six places, or quadrillions, running up by terms derived from the Latin numerals. A series of units of that extent would be beyond the power of mat) to compre- hend, or even imagine. Even millions convey a very indefinite idea, and when it rises to billions, the mind can no longer grasp the number ; and though we may READ the expres- sion, it is very much as we read sentences in an UNKNOWN lanquaqe. We may perhaps assist the mind of the student by some little calculation. We often see million spokea of in national expenditures ; but the majority of the people do not even imagine the extent of the number. If a man were to count fifteen hundred (|ollars an hour, and work faith- fully eight hours a day, it would take him nearly three tit^ih \s to count a million dollars: and if the dollars were bank bills they would reach over one hundred and ten miles. Dr. Thompson, Professor of Mathematics at Belfast, Ireland, very justly remarks: " Such is the facility with which large numbers are expressed, both by figures and language, that we generally have a very limited and inadequate conception of their real magnitude. The following consideration m ./ ^erhrps assist in enlarging the ideas of the student on this subject : " To count a million, at one per second, would require between twenty-three and twenty-four days, of twelve hours each. " The seconds in six thousand years are less than one-fifth of a trillion. A qua- drillion of leaves of paper, each the two hundreth part of an inch in thickness, would form a pile the height of which would be three hundred and twenty times the distance of the moon from the earth. Let it also be remembered that a million is equal to a thousand repeated a thousand times, s.nd a billion equal to a million repeated a thousand times." ADDITION. Skill in Addition is the foundation of readiness and accuracy in arithmetical computations; and this skill is to be acquired only by practice and careful attention to the principles and combiuntions of numbers. A clear head, quick perception, and proper cul- tivation, are the essential qualifications to insure success. With these, any one may place himself in the rank of experts. Those who have already learned the rudiments of arithmetic will need, under this head, nothing more than a few practical hints. First, it is importan'. to observe that every operation should be simplified as much as possible. The mind should be disencumbered of the clogs imposed by the school-boy rules, and trained to arrive at results in the most direct and rapid maniier. Even the thought of words ought to be banished. To aid in acquiring facility and accuracy in adding short columns of figures the following ij considered the best process : 346 634 Commence at the right hand column, and adds thus : 667 436 10,23,33 ; carry the tb'ee tens to the next column and add : 268 632 11,19,26; carrv the two hundreds to the next and add: 10,20,28; 2863 la this wi ease as you woi this mannet : 2 is just as easy, and the additio A In account with certainty, recommended : Commence 18; pl"ie a sm idd6-t-4--8 = : 17; place a sm place a small 6 t small 7 to the ri small figures in 36 under the o number of figure of figures in the column and you If, upon ari whose sum does i never placing an ten. In the 'xan we discarded a t we add the threi have 8 for the ( and 30, always s in the new colum For the add after obtaining tl and carry the rei ny number of C( 18 ; place a smal until you reach t with the 4 at th( ten), and you 1 number of figun now add the 7 tc the left ; after b 255 1»3 this way you name the sum of two or three figures at once with quite as much ease as you would add one figure at a time. Never permit yourself to add up a column in this manner : 2 and 8 are 10, and 6 are 16, and 7 are 23, and 4 are 27, and 6 are 33. It is just as easy, after a little practice, to name the result of two or three figures at once, and the addition can be pcrformed^at least in_one-quartcr of the time. ADDITION OF LONG COLUMNS OF FIGUEES. la account books long columns of figures frequently occur, and in order to add them with certainty, and at the same time with ease and expedition, the following method is recommended : EASY METHOD OF ADDITION. Commence at the bottom and add as near 20 as possible, thus: 9-1-2+4+3 = 18 ; pl-'-^e a small 8 to the right of the 3, as in example ; commence next at 6 and add 6 + 4 i- 8 = 18 ; place a small 8 to the right of the 8 ; commence at 6+4+7= 17; place a small 7 to the right of the 7 ; commence at 4 and add 4+9+3=16 ; place a small 6 to the right of the 3 ; commence at 6 a^d add 6+4+7=17 ; place a small 7 to the right of the 7 ; having now reached the top of the column, add the small figures in the column thus: 7+6+7+8+8=36 ; place the right hand figure of 36 under the original column as in example, and add the left hand figure to the number of figures in new column, thus the loft hand figure in 36, plus 5, the number of figures in the new column, stands 3+5=8 ; prefix the 8 to the 6 under the original column and you have 86, the sum of the column. If, upon arriving at the top of the columns, there should be one or more figures whose sum docs not equal 10, add them to the sum of the figures in the new column, never placing an extra figure in the new column unless it be an excess of units above ten. EEASONS FOR THE PEECEDING METHOD. 7' 4 6 3* 9 4 V 4 6 8" 4 6 3» 4 2 9 In the "xam) ie it will be noticed that every time we placed o, figure in the new column we discarded a ten, and when we set down 6 in the answer we discarded three tens ; hence we add the three to 5, the number of tens discarded in forming the new columns, and we have 8 for the tens place in the answer ; on the same principle we might add between 20 and 30, alwa3'8 settiag down a figure before adding as high as thirty ; then for every figure in the new column count 2 tens. ADDITION OF TWO OR M RT COLUMNS. For the addition of two or more columns, begin the same as in the preceding example, after obtaining the sum of the first column, ilacc the right hand figure under the column and carry the remaining figures to the next column and proceed as before, and so on with ny number of columns; thu«, in the adjoming example, begin and add 2+3+5+.S = 18; place a small 8 to the right of the 8; commence aod add 6+7+2=15, and so on, until you reach the top of the column next add the figures in the new column together with the 4 at the top, which was not included in the first addition (it being less than ten), and you have 3U, place the under the original column, add the 3 to the number of figures in the new column, and you have 70 for the sum of the column ; "25 now add the 7 to the next column and proceed as before, placing the small integers to 78 the left ; after having completed tb3 addition to the column, add together the figures 62 '24 26" 37 43 64' ■if \F 256 in the new ooluma thus : 74.64.5 + 7=25 ; place the 5 under the tens column and add "47 the 2 to the number of figures in the new column thus: 2+4=6; put this in the 36 hundreds place and you have the addition completed. 28'' 75 '73 This method of addition should be used only in adding very long columns of 42 figures where the footings amount to two or three hundred and upwards, in which case it is very superior on account of its accuracy. 660 MULTIPLICATION. The process of multiplication may be greatly facilitated in many instances by a little observation and study ; for instance where there are two numbers to be multiplied together, each of which consists of two figures, we have the following : Rule. — Set one of the numbers under the other in the form of a multiplication. Multiply the unit figure of the multiplicand by the unitfijure of the multiplier. Set down the units of the result and reserve the tens to be added to the next product ; next multiply the tens figure of the multiplicand by the units figure of the multiplier, and ad I to the product the figure reserved from the preceding multiplication; then multiply the units figure of the multiplicand by the ti ns figure of the multiplier; add these two results together, set down the units figure of their sum, reserving the remaining figure or figures to he added to the next product ; now multiply the tens figure of the multiplicand by the tens figure of the multiplier antZ to the product add the number held in reserve, place the result to the left of that part of the product previously found, and the multiplication will be completed. . EXPLANATION. Multiply the units of the multiplicand by the units of the multiplier, thus : 56 6 X 3=18 ; set down the ei^ht as in example. Multiply the tens figure of the multi- 43 plicandby the units figure of the multiplier, thus : 5 x 3=15, to this add 1, the figure -^— held in reserve from the first multiplication, which gives 16 ; next multiply the uuitd 2408 figure of the multiplicand by the tens figure of the multiplier, thus : 6 x 4=24, to this add 16 and you have 40, place down the and reserve the 4 ; next multiply the tens figures in each together, thus : 5 x 4=20, and to this product add the 4 held in reserve, which gives 24 ; set down the whole number and the product is completci USEFUL CONTRACTIONS. ^ To multiply any number of two figures by 11. Rule — Write the sum of the figures between them, 1. Multiply 36 by 11. Ans. 396. Here 3 and 6 are 9, which write between 3 and 6. N. B. — When the sum of the two figures is over 9, increase the left-hand figure by the one to carry. Multiply 68 by 11. Ans. 748. To square any number of 9's instantaneously, without multiplying. RULB. — Write down us miny 9's li'ss one as there are 9'« Jn the given number, an 8, as many O's as 9's, and a 1. What is the square of 9999 ? Ans. 99980001. A VALUAB 257 Explanation. — We hav" four 9*8 in the given number, so we write down three S's, then an eight, three O's. ".nJ jl !! ill 258 they cost $21.00 per dozen, they should ba sold for $2.10 each, etc. We take 20 per cent for the following reasons, viz : becau!«e we can determine instantly, by simply removinc the I al point, without changing a figure ; and, if the goods would not bring at least 20 per cent, profit in the home market, the merchant could not afford to purchase, and would look for goods at lower figures. 1^ ow, as removing the decimal point one place to the left, on the cost of a dozen articles gives the selling price of a single one, with 20 per cent, added to the cost, and, as the cost of any article is 100 per cent., it is obvious that the sellia;' price would be 20 per cent. more, or 120 per cent ; hence, to find 50 per cent, profit, which would make the selling price 150 per cent., we would first find 120 per cent., then add 30 per cent., by increasing it one-fourth itself ; to make 40 per cent., add 20 per cent, by increasing it one-sixtli itself- for 35 per cent, increase it one-eighth itself, etc. Hence to mark an article at any per cent. profit, we have the following : GENERAL RULE. First Jind 20 ^er cent, profit hy removing the decimal point one place to the left on th< price the articles cost a dozen ; th«n, as 20 per cent, profit is 120 per cent., add to or subtract from this amotmt the fractional part that the required per cent, added to 100 is more or less than 120. TABLE FOR MARKING ARTICLES BOUGHT BY THE DOZEN. N. B. — Most of these are used in business. To mEike 20 per cent, romoire the point one place to the left 80 « 60 (( 60 t( 44 it 40 tt .35 (I and add one-half itself cue-third " one-fourth " one-fifth " one-sixth " one-eighth " GENERAL RULES FOR CANCELLATION. Rule \st. Draw n, perpendicular line ; observe this line represents the sign of equal- ity. On the right-hand side of this line place dividends onl^ ; on the left-hand side place divisors only. 2nd. Notice whether there are ciphers both on right and le/t of the line ; if so, erase an equal number from each side. 'ird. Notice lohether the same number stands both on the right and Vft of the line ; if so, erase them both. 4th. Notice again if any number on either side of the line will divide any number on the opposite side without a remainder ; if so, divide and erase the two numbers, retaining the quotient on the side of the larger number. 5th. See if any two numbers, one on each side, can be divided by any assumed num- ber without a remainder ; if so, divide then by that number, and retain only their quotients. Pmceed in the S'lme manner as far as practicable, 6th. Multiply all the numbers remaining on the right-hand side of the line for a dividend, and those remaining on the left for a divisor. 1th. Divide, and the quotient will be the answer. Rule. — line. If the t number of mo^ months and d< place 36 on t Point off when the time EXAMPL monthb at 8 pi Abbamg Cancel ai EXAMPLl for 19 days, ai Abrang 3 $ EXAMPL] and $290, for ' Abbanoi 3( $^ NOTB.— If the I places when the tini METHOD $12 PER If a note months would in decimal pari iug: Rule. — I of the days to EXAMPLI 6 per cent. * Remember tl reJuceU to months, 259 SIMPLE INTEREST BY CANCELLIATION. Rule. — Place the principal, time, and rate per cent, on the ri^ht-hand side of the line. If the time consist of years and manths, reduce them to months, and place 12 (the number of months in a year) on the left-hand side of the line. Should the time consist of months and dnys, reduce them to days, or decimal parts of a month. If reduced to days, place 36 on the left. If to decimal parts of a month, place 12, as before. Point of two decimal places when the time is in months, and three dteimal places when the time is in days. Example 1. — Find the interest on 0850, for 6 months, at 7 per cent.; and for 15 monthfe at 8 per cent. Aeeangement— 7 PEK Ct. Arrangement— 8 per Ct. 12 850 6 7 12 850 15 8 $86.00 Ans. $29.75 Ans. Cancel and multiply, and you will ohtain the answer. Example 2— Find the interest on $175, for 48 days, at 7 percent. ; and on $364.50 for 19 days, at 6 per cent. Aerangbment of first. Arrangement of Second. 36 175 48 7 36 364.50 19 6 $1.^3^ Ans. $1.15425 ^n». Example 3. — Find the interest on $436, for 9 months and 18 days, at 7 percent. ; and $290, for 7 months and 14 days, at 6 per cent. Arrangement of First. Arrangement of Second. 36 436 288 7 2^0 224 6 $24,416 .4«*. $10,826 .4»«. Note. — If the principal contains cents, point off foar decimal places when thn time is in months, and five decimal places when the time is in days. METHOD OP COMPUTING INTEREST ON ALL NOTES THAT BEAR $12 PER ANNUM, OR ANY ALIQUOT PAST OR MULTIPLE OF $12. If a note bears $12 per annum, it will certainly bear $1 per month ; hence the time in months would be the interest in $ ; and the decimal parts of a month would be the interest in decimal parts of a $ ; therefore when the note bears $12 per annum we have the follow- ing : Rule. — Reduce the years to months, add in the given months, and place one-third of the days to the right of this number, and remove the decimal point one place to theleft.^ Example 1 . — Required the interest on $200 for three years, 7 months and 1 2 days, at 6 per cent. ^ i of 12 days == 4 200 6 $12 00 == int. for 1 yr. Yr. Mo. D8. 3 7 12 ==43.4 mo. Hence 43.40 Ans. * Remember the answer obtained by this rule (s in dollars and decimals of a dollar. In the flrat example the years rciluceU to months, and one-third the number of days pliiced to the right give 4H,4, which, reduced to dollars, is SIB. 40. imji'i^iiiili!] .'A 260 We see by inspection this note bears $12 interest a year. If this note bore 86 a year instead of $12 we would take one-half of the above interest ; if it bore $18, instead of $12 we would add one-half; if it bore $24, instead of $12, we would multiply by 2, &c. Example 2. — Required the interest on $150 for two years, 5 mouths and 13 days, at 8 per cent. 150 i of 13 days == 4 i 8 "^ Tr. Mo. Ds. $12.00 = int. for 1 yr. 2 5 l.S = 29.4J mo. Hence 29.433i Ans. We see by inspection that this note bears $12 interest a year ; hence the time reduced to months, with one-third of the days placed to the right, gives the interest at once. ExAMPLE.3— • Required the interest on $160 for 11 years, 11 months and 11 days, at 7^ per cent. 160 i of 11 days== 3f 7i Yr. Mo. Ds. $12.0== int. for one year. 11 11 11 == 143.3J mo. Hence $143.36! Ans. When the interest is more or less than $ 12 a year. Rule . — First Jind the interest for the given time on the base o/ $ 1 2 interest a year ; then if the interest on the note is only $6 a year, divide by two ; if $24 a year, multiply by two ; if $18 a year, add on one-half, etc. Example. — What is the interest on $300 for 4 years, 7 months and 18 days, at 6 per cent ? i of 18 days = 6. 300 4yr. 7mo. ISds. == 55.6mo. 6 $18.00 == int. for 1 year. $18== Ij times $12. 2)55.6, int. at $12 a year. 27.8 $83.4 Am. If the interest was $12 a year, $55.60 would be the answer ; because 55.6 is the time reduced to months ; but it bears $18 a year, IJ times 55.6 gives the interest at once. Example 2. — Required the interest of $150 for 3 years, 9 months and 27 days, at 4 per cent. iof 27days ==9, 150 3yr. 9mo. 27ds,== 46.9mo. 4 2)45.9, int. at $12 a year. $6.00 == int. for 1 year. $22.95 Ans. $6 == i times 12. If the interest had been $ 12 a year, $45.90 would have been the answer ; because 45.9 is the time reduced to months ; but it bears $6 a year, or J of 12 ; hence J 45.9 gives the interest at once. BUSINESS METHOD OF COMPUTING INTEREST AT 6 PER CENT, FOR ANY NUMBER OF DAYS. Rule. — Draw a perpendicular line, cutting off the two right hand figures of the $ and you have the interest of the sum for 60 days at 'o per cent, KOTE. — The flgures on the left of the line are 9, and those on the right are decimals of 9. EXAMPI Note. — and from that EXAJIPI, EXAMPL EXAMPL] A EEMARKf the days are al by a large ma Colleges as the METHOD First find The follow will amount to Rule. — L have the interes Note.— This ia containing only 360 1 is desired, the interuj Interest at 4 per Interest at 5 per Interest at 6 per Interest at 7 per Interest at 8 per ' ' jrest at 9 per jrest at 10 pel Note— The flgii leas than 10, prefix a I 261 Example 1. — ^What is the interest on $520, for 60 days, at 6 per cent ? $520 = the principal. $5 I 20ct9. interest for 60 days. Note. — When the time is more or less than 60 days, first get the interest for 60 days, and from that to the time required. Example 2. — What is the interest of $424, for 15 days, at 6 per cent ? Days. Days. 15 = J of 60 $424 := principal. 4)4 I 24cts. = interest for 60 days. 1.06 cts. = i.iterest for 15 days. Example 3. — What is the interest of 8114.40, for 90 days, at 6 per cent? Days. Days. Days. 90 = 60 + 30 $114.40 = principal. . 2)1 I 1440 =: interest for 60 days. I 572C =: interest for 30 days . Ans. $1 I 716 = interest for 90 days. Example 4. — What is the interest of $824, for 75 days, at 6 per cent ? Days. Days. Days. . |824 = principal. 4)8 I 24cts. = interest for 60 days. 2 I 06ct8. = interest for 15 days. 75 = 60 + 15. Ans. $10 30cts. = interest for 75 days. Eemarks. — This system of computing interest is very easy and^imple, especially when the days are aliquot parts of 60, and one simple division will suffice. It is used extensively by a large majority of our most prominent business men ; and taught by Commercial Colleges as the shortest system of computing interest. > METHOD OF CALCULATING AT DIFFERENT RATES PEIJ CENT. First find the interest at 6 per cent., and from that any other rate per cent. The following table shows the different rates, with the time that a given number of $ will amount to the same number of cents when placed at interest. Rule. — Draw a ptrpendicular line, cutting off the two right hand figures of $, andyoU have the interest at tht following rates per cent. Note.— This is the method In common n»8 for computing intereat for days ; bat since it considers the year as containing only 360 days Instead of 366, the result is too large by _A_ or _L of itself. ITjnce, when perfect accniacy Is desired, the interest for the days when obtained by the rule mast bo diminished by ^V P^<^ "' itself. Interest at 4 per cent, for 90 days. Interest at 5 per cent, for 72 days. Interest at 6 per cent, for 60 days. Interest at 7 per cent, for 52 days. Interest at 8 per cent, for 45 days. ' ' ,rest at 9 per cent- for 40 days, jrest at 10 per cent, for 36 days. Note — The flgures on the left of tho perpendicular line are dollars, and on the right decimals of f. If the A are leas than 10, prefix a 0. Interest at 12 per cent, for 30 days. Interest at 7-30 per cent, for 50 days. Interest at 5-20 per cent, for 70 days. Interest at 10-40 per cent, for 35 days. Interest at 7i per cent, for 48 days. Interest at 4J per cent, for 80 days. m\ M\k U- w W ( !(i!l!!i m ! u i 262 Example 1. — ^What is the interest of $180, for 15 days, at 4 per cent. ? Days. Days. 15 = 1-6 of 90. $180 = principal. 6)1 I 80 cts.— int. for 90 days. I 30 cts.— int. for 15 days. Example 2. — ^What is the interest of $182, for 13 days, at 7 per cent. ? Days. Days. 13 = J of 52. $182 = principal. 4)1 I 82 cts.— int. for 62 days. I 45} cts. — int. for 13 days. Example 3.— What is the interest of $580, for 9 days, at 8 per cent. ? Days. Days. 9 = 1-6 of 45. $580 ^ principal. 5)5 I 80 cts. — int. for 46 days. $1 I 16 cts.— int. for 9 days. Example 4. — What is the interest of $462, for 64 days, at 7J per cent. ? $462 = principal. 3)4 I 62 cts.— int. for 48 days. 1 I 54 cts. — int. for 16 days. Days. Days. Days. 64 = 48 -t- 16. $6 I 16 cts.— int. for 64 days. Remark. — We have now illustrated several examples by the diflferent rates per cent. ; if the student will study carefully the solution to the above examples, he will, in a short time, be very rapid in this mode of computing interest. We will here illustrate an example to show the difference between this and the cancel- ling system : Required the interest of $420, for 49 days, at 6 per cent. Butiness method. Caneelling method. 2)4 2)2 5)1 3) $3 20 cts.— int. for 60 days. 10 cts. — int. for 30 days. 05 cts. — int. for 15 days. 21 cts. — int. for 3 days. 7 cts. — int. for 1 dav. 36 420 6 49 43 cts.- int. for 49 days. $3,430 Ans. The cancoUing method is much more brief ; we simply cancel 6 in 36, and the quotient 6 into 420 ; there is no divisor left ; hence 70 + 49 gives the interest at once. If the time had been 15 or 20 days, the other method would have been equally as short, because 15 and 20 are aliquot parts of 60. The superiority the cancelling system has over all others is this : it takes advantage of the principal as well as the time. 1. What is the interest of $46.28, for 2 years, 3 months and 23 days, at 5 per cent. 7 Aks. $6.35. 2. What is the interest of $54.81, for 1 year and 6 months, at 5 per cent.? Ans. $4.11. 3. Wliat is the interest of $500, for 9 months and 9 dars, at 8 per cent. ? Ans. $31. 4. What is the interest of $62.12, for 1 month and 20 days, at 4 per cent ? Ans. $ .345. 5. What is the interest of $85, for 10 months and 15 days, at 12} per cent. ? Ans. $9,296. 6. Whatis the interest of $327,825, at 8 per cent, for one year? Ans. $26,226. 7. What is the interest of $325, for 3 years, at 6 per cent. ? Ans. $58 50. 8. What is the interest of $187.25, for one year and 4 months, at 6 per cent. ? Ans. $14,98. 9. What is the interest of $694.84, for 9 months, at 10 per cent. ? Ans. $52.1 13. 10. W Ans. $3.19. 11. Wl at 8 per cent 12. Wh per cent. ? Under t chasing and s metic. Exampi days, $13,65'; the average d EXAMPL $10,480. On profits, and av Ans. Ti $19,55-f-. A Exampl: §2,223. Reqi per cent. Ans. Tot per cent., $14. Ex. 4.— 1 the loss per ce Ex. 5— S per cent, from Ex. 6.— .Si 12| per cent. Ex. 7.— S having failed i gain or loss per Ex. 8.— I gave up the re the retail price. * The amount ii NOTB.— The pri ingciiiouii student w: aliquot parts ; but \ much more simple oi 263 10, What is the interest of $67.78, for 1 year, 4 months and 17 days, at 4 per cent.? Ans. «3.19. 11. What is the amount of $298.59, from May 19ih, 1876, till August 11th, 1877, at 8 per cent. ? * 12. What is the amount of $196, from June 14th, 1876, till April 29th, 1877, at 9 per cent. ? PROFIT AND LOSS. Under this head we shall confine ourselves to ascertaining the gain or loss on pur- chasing and selling merchandise, the rules for which may be found in any ordinary arith- metic. Example 1. — Purchased merchandise for $15,496.80. Sales effected in eighty-four days, $13,654.20. On hand $4,295.40. Required the total gain, the average daily sales, the average daily profits, and the average gain per cent. Ans. Total gain, $2452.80 Average daily sales, 162.55 Average daily profits, 29.20 Average gain per cent., .22, nearly. Example 2. — Purchased merchandise for $12,684. Sales effected in ninety days, $10,480. On hand, $3,964. Required the total gain, average daily sales, average daily profits, and average gain per cent. Ans. Total gain, %\,1&Q. Average daily sales, ^Wi.^^-^- . Average daily profits, $1 9.55 -f- . Average gain jier cent. $20.18 + . Example 3. — Purchases, $6,895. Sales in thirty-six days, $4,011. On hand, $2,223. Required total gain or loss, daily sales, daily giiin or loss, and the gain or loss per cent. Ans. Total loss, $661. Daily sales, $111,416 + . Daily loss, $18.36 + . Loss percent., $14.12 + . Ex. 4. — Bought molasses at 25 cents per gallon, and sold it for 23f cents. Required the loss per cent. Ans. 5. Ex. 5 — Sold merchandise for 20 per cent, advance on the first cost, and deducted 5 per cent, from the invoice for immediate payment. Required the net gain per cent. Ans. 14. Ex. 6. — Sold merchandise at 25 per cent, advance, and from the invoice deducted 12J per cant. Required the net gain per cent. Ans. 9.375. Ex. 7. — Sold merchandise at an advance of 50 per cent, on first cost ; my customer having failed in business, I lost 40 per cent, from the selling price. Required the net gain or loss per cent. Ans. 10 per cent. loss. Ex. 8. — A merchant sold his goods to retail customers at 25 per cent, advance. He gave up the retail business, and marked his goods to sell at wholesale, 20 per cent, from the retail price. Required his gain or loss per cent. Ans. No gain or loss. * The amonnt U the principal and interest added together. NoTB.— The preceding mode of computing Interest Is derived and dedaced from the cancelling system, as the ingenious student will readily see. It is a short and easy way of finding interest for days, when the days are even or aliquot parts ; but when they are not mnltlples, and three or four divisionB are necessary, the cancelling syst jui is much more simple and easy. 264 PARTIAL PAYMENTS. The method of computing interest when partial paymeiwts have been made is a subject that has given rise to much litigation. When the time of the note or obligation is more than one year the following rule has been sanctioned by a number of decisions both in law and equity : BuLE. — I. Compute theinterest on theprincipal to the time of the first payment, and if this payment exceed the interest then Jue, add the interett to the principal, and fivm the sum lubstract the payment; the remainder will form a new principal, with which proceed as before. II. But if the payment be less than the interest, compute the inttrest on the principal to the time when the sum of the payments shall first equal or exceed the interest due ; and the interest to the principal, and from the amount subtract the sum of the payments, and treat the remainder as a new principal. Note. — This rule is based upon the principle that in all cases the payment should be applied first to interest due, then to the principal, and that the principal remains unchanged until the sum paid exceeds the accrued interest, the principal alone drawing interest. When the computed interest exceeds the payment such interest may be added to the interest for the next interval of time, or, if estimated mentally to be less, the amounts may be computed at once up to the time when the sum paid is not less than the accrued interest. DIFFBEENCE OF TIME BETWEEN DATES. The majority of people, in computing the difference of time between dates, count the exact number of days. Besides this plan, the two following rules are in use : fiuLE I. — By compound subtraction, reckoning 30 days for a month. UuLE II. — By finding the number of entire calendar months from the first date, and counting the actual number of days left. i EXAMPLES. From August 20th, 1873, to March lOth, 1876, would be according to the Ist Rule " " 2nd Rule Year. No. of month. Day. 1876 .3 10 1873 8 20 2y 2y 6mo 6mo 20d. 18d. EXAMPLES, $4000 Toronto, June 1, 1872, I. Two years ufter date, I promise to pay William Smith, or order. Four Thousand Dollars, for value received, with interest at seven per cent. RICHARD HAYWELL. On this note were indorsed the following payments : t5eptember 15, 1872, received ($450) Four Hundred and Fifty Dollars. December 15, 1872, received ($50) Fifty Dollars. March 1, 1873, received ($500) Five Hundred Dollars. January 1, 1874, received (1000) One Thousand Dollars. What remained due June 4, 1874 ? Note.— By " Calendar month " is meant the time from any day In one month to the corresponding day of the next month. If the days of the first month are a higher number than the greatest number of days in the last month, the calendar month ends with the last day. Thus, from Jan. Slst to February 28th is a calendar month. 265 OPEEATION. Prinoipal on interest from June 1, 1872 S4000 00 Interest to September 15, 1872, 3 inos. 14d 80 89 Amount 4080 89 • Less first payment 450 00 Bemainder for a new principal H630 89 The Interest from Sept. 15 to December 15, 1872, is 863.44, which exceeds the payment. Interest from September 15, 1872, to March 1, 1873, 5 mos. 16d 117 20 Amount 3748 09 Less the sum of the second and third payments 550 00 Remainder for a new principal 3198 09 Interest from March 1, 1873, to January 1, 1874 186 47 Amount 3384 65 Less payment January 1, 1874 1000 00 Remainder for a new principal 2384 65 Jnterest from January 1 to June 4, 1874 70 94 Balance due June 4, 1874 2455 50 $1500 Hamilton, Janunry 1, 1877. 2. — One year a'fter date, we promise to pay S. White, or order, Fifteen Hundred Dollars, with interest, value received. - GEORGE BROWN & CO. The following payments were made on this note : — March 16, 1877, $100 ; June 13, 1877, $400; September 1, 1877, $200. What was due January 1, 187^, interest at 6 per cent ? Ans. $870.13 + . $3500. * Belleville, March 15, 1876. 3. — For value received, we jointly and severally promise to pay Wm. Smith, or order Three Thousand Five Hundred Dollars, with interest. JAMES JONES. ROBT BROWN. Indorsed as follows : — June 1, 1876, received $800 ; September 1, 1876, $100 ; Jan. 1, 1877, $1560; March 1, 1877, $300. What was due May 16, 1877, interest at 6 per cent. ? Ans. $902,753 + . AVERAGE OF ACCOUNTS. AVERAGE OF ACCOUNTS OR EQUATION OP ACCOUNTS is the process^of finding the mean or average time for the payment, in one amount, of several debts due at different dates, without allowing interest to either debtor or creditor. The time when the amount falls due by average is called the Equated Time. The different methods of averaging accounts are based upon the principle that the interest or use of any sum of money paid before it is due, is equivalent to the interest or use of an equal sum retained for the same length of time after it becomes due. "' m 1 i • 1 i \m t m tit "Siii il 266 The process, therefore, consists merely in finding a point of time when the interest on sums then overdue equals the discount on the sums nut due, reokoning what is here termed discount as simple interest, like bank discount. Illustrations. — Suppose A owes B 8100 due in one year, and 8100 due in two years, without interest, the average maturity of both sums is eighteen months from the dnu; of the first; for A will then have had the use of 8100 for six months after it became due, which is equivalent to the use of 8100 paid six months before it is duo. Simple average is the process of averaging an account containing debit or credit items only. Example. — A owes B, January 1, 1877, 81800; of which $700 is payable in six months 8300 in four months, and 8800 in eighteen months; when can the whole be paid without gain or loss of interest to either party ? Analysis. — It is evident that, if nothing should be paid until the maturity of the debt last due, A would owe B $1800, besides the interest of 8700 for 12 months, which, at 6 per cent., is 842, and the interest of 8300 for 14 months, which is 821. But the ques- tion is, when may the whole be paid without interest ? Clearly, it should be paid as long prior to the expiration of 18 months as it will take 81800 to gain the interest then due, namely 842 + 821 = 63. The interest of 8 1 800, for one month, at 6 per cent., is 89 ; and 63-f-9=7. Therefore, it will take $1800 7 months to gain $63 interest, and the equated time is 7 months prior to July 1, 1878, or 11 (18 — 7) months from Jan. 1, 1877, which is Dec. 1, 1877. PRACTICAL solution. Product Method. 700 X 6 =? 4200 300 X 4 = 1200 800 X 18 = 14400 1800 )19800(11 1800 1800 1800 Interett Method. Int. of 8700 for 6 mos.=821.00 " " 300 "4 " = 6.00 " " 800 "18 " = 72.00 2)18.00 899.00 9)99(11 99 1. — Sold go( 18 When V 2.— Bought ' 181 When w 3.— Sold Smi 187 The pun sory note for I due at the av( A merch explanations. The USE of $700 for 6 months = the use of $1 for 4200 months. « « 8300 for 4 months = the use of $1 for 1200 months. «« « 8800 for 18 months = the use of $1 for 14400 months. «« « $1800 for 11 months = the use of $1 for 19800 months. The use of $1 for 19800 months is equal to the use of $1800 for as many months as 1800 is contained times in 19800=11, By the Interest Method, the total interest of the different sums for their respective terms of credit is $99, and the interest of $1800 for one month is $9. Therefore it will take $1800 as many months to gain $99 as 9 is contained times in 99 = 11. Hence, the equated time is 11 months from Jan. 1, 1877, or Dec. 1, 1877. What is Jan. 1, 1877, D( There ar lowing, on ace EuLE. — multiply the t 0/ days hetwei 267 1XAHPLI8 FOB FRAOTIOE. 1. — Sold goods to A. as follows: 1877, June 10, a bill at 60 days »2B00 00 Aug. 18, « « 30 « 475 32 Sept. 20, « « 9Q « BOO 00 Oct. 1, a « go « 219 75 Nov. 1, II i< 30 II 160 25 $3845 32 When will the above bill become duo by average ? Ans. Sept. 11. 2. — Bought of G. C. Holton & Co., mdse. as follows : — 1877, Jan. 1, mdse., at 30 days, Feb. 13, « " 60 Mar. 15, " '« 90 Apr. 11, " " 30 II 1722 30 30 " Note, 30 days. 1000 00 June 16 " " " 30 days. 975 12 Aug. 31 " Cash, 560 00 July 30 II II II go " 146 3,5 Aug. 17 i( II II 30 II 1650 25 Cr. 1877 1877 Oct. 13 To Mdse. at 3 mos., $275 16 Dec. 1 BjOash, $150 00 Nov. 18 II II 4 " l>-6 37 II 30 300 00 Deo. 1 II II 2 " 917 16 1878 II 5 II II 3 « 875 00 Feb. 18 II II 560 00 1878 March 1 II II 262 00 Jan. 10 II II 2 " 327 15 Feb. 16 II II 3 " 186 70 Ans. March 17, 1878. The following account, illustrated by the interest method, if worked out by the pre- ceding rule, will show the distinction between the two systems : ' 7. When will the balance of the following account become due ? S. Or. Beatty in account with W. B. Robinson . Dr. Jan. 13 To Mdse., at 30 days, $300 Feb. 4 " Sundries 460 Apr. 15 " Heal Estate, 720 Cr. 1470 Feb. 1 6 By Sundries, 760 f'li: i'«l* 270 May 20 By Caah, June 10 " Mdse., Balance due, Int. on $300, from Feb. 12th to June 10th, 450, " " 4th " 720, " Apr. 15th" a $300 120 5.90 9.45 6.72 1170 300 Total debit interest to June 10th, 22.07 Int. on 1 750, from Feb. 15th to June 10th,. ... 14.38 " 300, " May 20th " " " ...... 1.05 Total credit interest to June 10th, 15.43 The difference between the debit and credit intefest, $22.07 — $15.43 =$6.64, the balance of interest in favor of tlie debit side of the account. Interest on the balance of the account for one day is 5 cents $6.64 ^ 05 = 133, the number of days to count backward from June 10th, giving January 27th as an equated date. Dr. W. A. j'osTER & Co. in acct. with A. M. SPAFFORD & Co. Cr 1877 April 3 Ma^ 1 If. June 24 July 1 To Mdse., U II « II II II II (I $220 125 200 140 190 Time of Oredit 1877 3 months. July 1 5 " Oct. 3 6 " Dec.20 8 " 9 " By Cash, II II $200 150 300 By equating each side, the account will stand as fellows : Dr. Cr. Due, Nov. 21, 1877, $875. || Due, Oct. 10, 1877, $650. It will be found, by the rule, that the balance of the account, thus equated, becomes due March 22, 1878. Ans. 3. G. Bateman, Dr. In account with Hbnrt Smith & Co. Cr. 1877 Time of Cr. \7hea due. 1877 Jan. 1 To Mdse., $1000 2 months, March 1 April 1 By Cash, $1000 Feb. 8 j cu. ft. T 278 3. What are the cubical contents of a etiok of timber 14 inches square and 20 feet ; ? Ans. 27 J cu. ft, 4. Find the cubical contentM of a stick of timber, 16 x 18, and 28 feet long. Ans, 56 cu. ft. ROUND TIMBER. Round timber is now very generally bought and sold by its cubical measurement, when reduced to scjuare timber, The following rule for finding the content is extensively used, and is considered prac- tically just to both buyer and seller. Rule. — Deduct from the mean diameter in inches one-third of itself ; multipli/ tht, square of the remaindtr hy the length nf the log in feet, and divide the product hy 144. Example 1. — Find the cubical contents, in square timber, of a stick of round timber, 14 inches in diameter at tho smaller end, 20 inches at the larger, 2G feet long. SOLUTION. 20+ 14 = 34-7-2 = 17 mean diameter. 17— 5§= llj; andlljxllj = 128f 128f X 2()-=-144 = 23//,^* Ans. 23 + feet. Ex.\MPLE 2 Find the measurement, as square timber, of a stick of round timber, 30 feet long, and of an average diameter of 15 inches. Ans. 20^ cu, ft. ExA.Ml'LE 3. — Required the cub:i;al contents, as square timber, of a stick of rojinJ timber, 25 feet long, and 20 inches us diameter at one end, and 28 inches at the other ? Ans. 44^ cu. ft. Example 4. — Required the cubical contents, as square, timber, of a stick of round timber, 32 feet long, and averaging 23 inches in diameter. Ans. 52 eu. ft. When logs of various sizes are bought by the standard, lumbermen adopt the following rule to ascertain tlie number of standard logs in a given quantity. Rule. — Multiply the square nf the diameter in inches, at the small end, hy the numher of logs of the same diimeler, and divide the product by 400. Exa.mple. — Ho\^fcany standard logs are contained in the following ? 10 logs 13 ft. long, 23 in. in diameter. 20 " 13 I" 18 " " 30 " 13 " 21 " " Ans. 02^. Note. — When the length of logs is more or less than 13 feet they should be multiplied by the length and divided by 12. MECHANICS' WORK. carpenters' work. Roofing, flooring, etc., are usually measured and computed by the 100 square feet, In boarded flooring, the dimensions must bo taken to the extreme parts, and the number of squares of 100 feet must be calculated from these dimensions. Deductions should be mode for staircases, chimneys, etc. NoTK— Tl e mean dinmeter is found by taking one-half of the snm of the diameters of the two ends. * A fraction of i a foot or less is disregarded, and a fraction over J in called a foot. 279 Example. — IIow many squares of fliwring are there in a floor 57 feet 3 inchoa long, and 28 feet G iuches broad '( OPERATION. By Deeimali. 67.25 38.5 28626 45H00 11450 100)1631.625 feet. 16.31625 squares. By Duorlaeimalt. ft. in. 57 " 3 28 " 6 28 " 7 " 6 1603 " 10n)I03l 7 " 6 16.31 squares. The modo of mcasuriiig roofing is given in the next exorcise. TILING OR SLATING. Tiling and .slating are measured by the squarii of 100 feot, as floorln:^, partitioning ind roofing are in Carpenters' work ; so that there is not much differoiico between the roofing and tiling ; yet the tiling will be the most ; for double measure is soin jtimes allowed for hips and valleys. In this work the contents of the roof are found by multiplying the length of the ridge by the girt from eave t) cave. Wlien gutters arc allowed double measure, the way is to measure the length along the ridgo-tilo. and add it to the contonts of the roof; this makes an allowance of one foot in breadth, the whole lo'igth of the hips or valleys. It is usual also to allow double measure at the eave.s, so much as the projection is ovor the plate, which is commonly about 18 or 2U inches. Skyliglits and chimney shafts are generally deducted, if they be large, otherwise they »re not. Example 1. — There is a roof covered with tiles, whose depth on both sides (with the usual allowancj at the eaves) is 37 feat 3 inches, and the length 45 feet; how many quares of tiling are contained therein ? £^ Decimals. 37.25 45 Bj/ Duodecima li. ft. in. 37 3 45 185 148 11 3 1676 3 18625 14900 1676.25 Example 2. — The length of a slated roof is 45 feet 9 inches, and its girt 34 feet] 3 I inches: what are its contents? Ans. 1566.9375 sq. ft. 3. What will the tiling of a barn cost at $3.40 per square of 100 feet, tlio length being 1 43 feet 10 inches, and breadth 27 feet 5 inches on the flat, the eave board projecting 16 [laches on each side, and the roof being of the true pitch. Ans. $65,26. M f\ IMAGE EVALUATION TEST TARGET (MT-3) /. >. / c% .v^.iV ^/ ^^ .'^■' '/ y^ Photographic Sciences Corporation 33 WEST MAIN STREET WEBSTER, NY. M580 (716) S73-4S03 %o 280 PLASTERERS' WORK. Plasterers' work is of two kinds, vii. : coiling, which is plastering on laths ; and ren- dering, which is plastering on walls. Those are uieasured separately. The contents are estimated either by the square foot, the square yard, or the square of 100 feet. Enriched mouldings, etc., are rated by the rtinning or linear measure. In estimating plastering, deductions are made for chimneys, doors, windows, etc. ExAHPLB 1. — How many square yards are contained in a ceiling 4H feet 3 inches long and 26 feet 6 inches broad ? Ans. 122^ nearly. 2. What is the cost of ceiling a room 21 feet 3 inches by 14 feet 10 inches, at 18 cents per square yard ? Ars. $6.42. f 3. The length of a room is 14 feet 5 inches, breadth 13 feet 2 inchea, and height to the under side of the cornice 9 feet 3 inches. The cornice girts 8^ inches, and projects 5 inches from the wall on the upper part next the ceiling, deducting only for one duor 7 ft. by 4, what will be the amount of the plastering ? Bndering. Ans. i53 yds. 5 ft. 3' 6' of renderii 18 yds. 5 ft. 6' 4" of ceiling. 37 ft. 10' 9* of cornice. The mean length of the cornice, both in the length and breadth of the house, is found by taking the middle line of the cornice. Now, since the cornice projects 5 inches at the ceiling, it will project 2^ inches at the middle lino ; and, therefore, the length of tlio middle line along the length of the room will be 14 feet, and across the room li feet 9 inches. Then multiply the double of each of these numbers by the girth, which is 8^ inches, and Uie b\iu- of tiiO product 4 will be the area of the cornice. PAINTERS' WORK. Painters' work is computed in square yards. Every part is measured where the color lies, and the measuring line is carried into all the mouldings and cornices. Windows are generally done at so much apiece. It is usual to allow double measure for carved mouldings, etc. Example 1. — Huw many yards of painting in a room which is 65 feet 6 inches iu perimeter, and 12 feet 4 inches in height? Ans. 89|[sq. yds. 2. The length of a room is 20 fuet, its breadth 14 feet 6 inches, and height 10 feet 4 inches ; how many yards of painting are in it — deducting a fire-place of 4 feet by 4 feet 4 1 inches, and two windows, each 6. feet by 3 feet 2 inches? Ans. 73/^ sq. yds. MASONS' WORK. The measure made use of in all sorts of stone work is cither superficial or solid. Walls, columns, blocks of stone or marble arc measured by the cubic foot, and pare-j ments, slabs, chimney pieces, etc., are measured by the square or superficial foot. Oubicl or solid measure is always used for the material, and squute measure is sometimes used| for the workmanship. Example 1. — Required the solid contents of a wall 53 feet 6 inches long, 12 feet ! inches high and 2 feet thick. Ans. 1310^ ft. 2. What is the solid contents of a wall the length of which is 24 feet 3 iuche? hcighlj 10 feet 9 inches, and thickness 2 feet. Ans. 521.375 ft 281 4 feet 2 inohea. 3 "2 " 4 " 4 •« 1 " 9 •* ANa. 31 h. 10 in. if 8. In a ohimney-pieoe we find the following dimensions : Length of the mantle and slab, Breadth of both together, Length of eaoh jam, Breadth of both, Required, the superficial contents. Stone walls are measured by the solid foot, the suporfioial foot, and by the paroh.'C Artifioerd' work in general is computed by three different measures, vii. : 1. The linear measure, or, as it is called by mechanics, running measure. 2. Suporfioial or square measure, in which the computation is made by the square foot, ■quare yard, or by the square containing 100 square feet or yards. 3. By the cubic or solid measure, when it is estimated by the cubic foot or cubic yard. The work, howev tr, is ofkon estimated in square measure, aud the materials for construction ia cubic measure. Masons geuerally contract for foundations of buildings and other walls of that descrip- tion at so muoh per perch (lt>^ feet), and in estimating their work adopt the following RvhU.—'MaUiplj/ the length, height and width of the wtll together, and divide the pro- duct hy 16^. Example. — How much will it cost to build a stone wall 60 ft. long, 8 ft. high and 3 ft. thick, at 70c. per perch ? OPERATION. 60 X 8 X 3 -=87 ^ perches x 70c=|61.09. A.NS. Til. : 16i BRICKLAYERS' WORK. The dimensions of a brick generally bear the following proportions to each other, Length=twioe the width, and Width = twice the thickness; and honce the len^h is equal to four times the thick' Dens. The common length of a brick is 8 inches, in which case the width is 4 inches, and thick< neas 2 inches. A brick of this sise contains 8 x 4 x 2=64 oubic inches ; and since a cubic foot contains 1728 cubic inches, we have 1723^64=27, the number of bricks in a cubic foot. If the brick is 9 inches long, then the width is A\ inches, and the thickness 2^, and each brick will contain 9 x 4| x 2^=91^ cubio inches ; and 1728 -^91^= 19 nearly, the number of bricks in a cubic foot. In the examples which follow we shall suppose the brick to be 8 inches long unless otherwise mentioned. To find the number of bricks required to build a wall of given dimonaions. 1. Find the contentt of the wall in cubic feet. 2. Multiply the number of cubic feet by the number ofbrickt in a cubic foot and the rt$ult will be the number required, * SiDoadKbrent w»y« of mauaring iitono wslli »ra •dnptad hj iltfferant machanioi, it i* neowHury, whM MiM opoi to ■WHIN nioh work, to flnt Mcertaln which tfttem is IntendMl to beadopt«d. 282 ExAXPLl. — How many brioks of 8 inches in length will bo required to build a wall 30 feet long, a bri6k and a half thick, and 1& feet in hoiglit? Ans. 12150. 2. How many bricks, of the usual siio, will bo required to build a wall 50 feet long, 2 bricks thick, and 36 fi. in height ? Ans. 64800. The thickness of mortar between the courses is nearly a quarter of an inch, so that four courses will give nearly one inch in height. The mortar, therefore, addu nearly one- eighth to the height. Ono-eighth is rather too largo an allowance ; but the mortar that goes to inoreaHu the length of the wall and to fill other spaoes makes it about ono-sixth. Mechanics in making estimates consider 5-6 of a wall solid brick. 3. How many bricks would bo required in the firdt and sooond examples, if we maks the proper allowance for mortar ? Bricklayers generally estimato their work at so much per thousand. 4. What is tho cost of a wail 60 foot long, 20 feet high and 2^ bricks thick at $7.50 per thousand — which prioo wo suppose to include tho codt of tlio mortar ? If we suppose the mortar to occupy a space equal to ono-sixth the height of the wall, we must find the quantity of bricks under supposition that tho wall is to be 16J feet in height. In estimating bricks for a house, allowance must be made for tho windows and doors. To ascertain tho number of bricks required to build 1 foot of a wall of any given tliick- ness. Rule. — MaltipJj/ the thicknett of the wall in inches hy 144, and from the product deduct ^ ittelf and divide the remainder by the tolid CMntentM of a brick. Example. — How many bricks will it require to build 1 foot of a wall 1 brick or 8 inches thick. ' SOLUTION. 8x144-1152—192 = 960 8 X 4 X 2=64 solid contents of 1 brick. 960 -T- 64=15. Ans. Note. — The mode of working examples where the proper allowances for mortar, &e., are taken into consideration, will bo given in tho following exercises. Example. — How many bricks will it require to build 1 foot of a wall 12 inches thick ? SOLUTION. . 12 X 144=1728—288=1440. 8 X 4 X 2=64 solid contents of 1 brick. 1440-r64=22i. Ans. To ascertain the number of bricks required to build a wall. BuLE. — Multiply the length and height of the wall in feet together ; ihii product multiplied by the number of bricks required to build 1 foot of such wall willbetherequireil result. Example 1- — Find the number of bricks required for tho erection of a building the walls of which are nine inches thick, the length 40 fl., width 32, and the height 18. Allowance (o be made for 12 windows, 7 feet by 3^, and 3 doors, 8( by 4 ft. (Bricks 9 inches long.) 283 SOLUTION. 40 4- 40 f 30| + 30}*= 141, the length in a straight wall. 141x 18, the heiKht=2r>38, the number of squiirj feol. 7x3^x12^291 feet, the npaou occupied by the windows; 8| X 4 X 3= l02,feot, the sp»oo oooupied by the doora— hence 294 -f 102=396, the number to bo deducted from the whob flurPace, 2533—396=2142 feitt of wall; this multiplied by 12, tha nninbjr ofbricki re<]uired to lay one foot of such wall, gives 25704 for the total number of bricks. ExAMPLR 2. — RtK{uired the number of bricks for building a wall 43 (i. long, 32 wide, 16 hiih aiil 8 inohis:) thiok, allDwin.; for 11 wltidow.4, 8 by 4^ foot, 4 doors 9 by 4} ft. E.XAMPLC 3. — Find the number of briokji required to build a house of the following dimen.iions: the miin building to bo 30 feut long, 21 wido, 15 high, and the walls 8 inches thiok : 2 doors, one S^ by ti a., tho other 7 by 3} ft. ; 8 windows 6} by 4 ft. The kitchen to be 13 il. long, 11 ft. wide, and sido walls 10 il. high, having a gablof 4| (t. in altitude, 4 windows 4| by 3 ft., and 2 doors, 7 j by 3} ft. 2. How many bricks will bu required to erect a wall 140 fl. long, 14 ft. high, and 1 (i. thick ; allowing for 2 doors 4x7 fout, and 12 windows, 3 x 5 fl. 3. How many bricks will bo rei|uired to erect a house 2ti x 36 fl., walls 21 foot high and I fk. thick ; allowing for 3 doors, one 4} x 7 il., two 3 x (i ft., and 12 windows, two 5x7 foot, three 4 X G foot, and seven 3 x 5 ft. ? 4. How many porches of stone-work arc there in the foundation of the above building if the wall bo 2 foot tliiuk and 4 foot high, thore bjing a cellar in one corner 18 x 20 feet, the walls of wliioh arc 7 feet high 'f GLAZIERS' WORK. QIaiicrs take their dimensions in foo(, inches and eighths or tenths, or else in feet and hundredth partri of a font, and ostiniatu tiioir work by tho 8(iuare foot. )]findow.s are souutimjs measurud by taking tho dimensions of one pane and multiply- ing its superficos by tlie number of panes. But moro generally they measure the length and broiidtli of tlio win low uforall tho panes and their frames, for the leugtii and breadth of the glaaing. Circular or oval wii\ lows, as fan lights, etc., are measured a^if they were square, taking for the dimensions their greatest length and breadth, as aoompensatioafor the waste •f glass and labor in cutting it to the necessary forms. ExAMPLB. — If a p.ino of glass bj 4 foot 8J inehos long, and 1 foot 4 J inches broad, how many feet of glass are in tlat pane. ■V DCOI'fClMAI.8. BT DBCIMALS. 4.729 1.354 18916 73645 14187 4729 rr. IN. P. 4 8 9 1 4 3 4 8 9" 1 6 11 12 2 3 4 10 3^3 6.403066 Anb. 6 feet 4 inchet. NOTB.— It U Impoviblfl, on aeconnt of tha nffODMuy WMt* luxl oth»r rao4lfylnB»elrcnmitanoe«, tOflTe the««Bo4 ■amber at brtokh rnqntrod to build a wall, bnt tha abore ifBtem of calcnUtlon ha* been toond by practical machanlci (• ke Tsry nearly rlKht. * It will bo obienreil th.it t) (o«t are dsdnctod from aa«h and to allow (or tho thieknaM of the wall. t To and Um oontanta of a gable, mattiply tha wtdth o( th« bnUdlng by the height 1 pint. 2. A cask measures 16 inebes from the centre of the Lung, diagonally, to the chine : what is ita capacity ? An8. 11 gals. 2 gills. 3. A cask measures 18 inches, diagonally, to the chine inside, one way, and 19 inches the other, what will it hold ? Ans. 17 gals, and 3 gills. 4. I have a small cask measuring 13 inches to the chine inside: what does it hold? Ans. 5 gals. 3 qts. 1 pt. 2 gilU, TO measuke corn in the crib. Corn is generally put up in cribs made of rails, but the following rule will apply to a crib of any size or kind. Two cubic feet of good, sound, dry corn in the car will make a bushel of shelled corn. To get, then, the quantity of shelled com in a crib of com in the ear, measure the length, breadth and height of tlie orib, inside of tub rail; multiply tho length by tho breadth, and the product by the height ; then divide phe result by two, and you have the number of I bushels of shelled corn in the crib. In measuring the height, of oourse the height of tho com is intended . And there will be found to bo a difference in measuring corn in this mode, between fall and spring, beoauso it shrinks very muoh in the winter and spring, and settles down. MOTB.— If the buns ii not In the centi*, meMare both wajn to chine ; add tho two remit* together, Mid t«k* hAlf the iwn ; then proceed m abore. I MEASUREMENT OF GRAIN. Tho 8tandard unit of Dry Moasuro is tho Imporial bushel, which is an upright cylinder whoso internal diainotor is 18.789 inches and depth 8 inches. It contains 2218,192 cubic inches or 801bs. Avoirdupois of pure distilled water. Grain is bought an 1 sold by wjijjht, allowin:^ for a bushel as follows : Wheat, 60 lbs. ; Indian corn, 50 ; rye, 56; poas, 60 ; barley, 43; oats, 34; beans, 60; clover seed, 60; timothy seed, 43; buckwheat, 48; flaxaoud, 50 ; hump seed, 44 ; blue fi^assseed, 14 ; castor beans, 40 ; potatoes, turnips, carrots, parsnips, bocts and onions, 60 lbs. ; salt, 56 ; dried apples, 22 ; dried peaches, 3:^, and malt, 36 pounds. TO MEASURE GRAIN ON THE FLOOR. RuLB. — Hf'ike the pile in the form of a pyramid or cone, and multiplj/ the area of the bate hi/ one-third the hfight/or the cubical content*. Ex.iMPLi. — A conical pile of grain is 8 feet in diameter, and 4 feet high, how many burhcls does it contain ? SOLUTION. The square of 8 is 64 ; and 64 x 62.201. .7851 X 1^ X tjV'v'iVt ^^° number of bushels = TO ASCERTAIN THE WEIGHT OF CATTLE BY MEASUREMENT. Multiply the girth in foot by the distance from the bone of the tail immediately over tlio hinder part of the bultook, to the fore part of the shoulder blade ; and this product by 31 when tho animal measures more than 7 and lets than 9 feet in girth ; by 23, when leu than 7 and more than 5; by 16, when leu than 5 and more than 3; and by 11, when leit than 3. -' Example What is the weight of an ox whose measurements are as follows : girth, 7 feet 5 inches ; length, 5 feet 6 inches ? SOLUTION. 5J X 7t»j = 40J|; 40JI X 31 = 1264+. Ans. A deduction of one pound in 20 must bo made for half-fatted cattle, and also for oows that have had calves. It is understood, of course, that such standard will at best give only the approximate weight. . MEASURING LAND. To find tho number of acres of land in a rectangular field, multiply the length by the breadth, and divide the product by 160, if the measurement is made in rods, or by 43560 if made in feet. ' ExAMPLB.— How many acres in a field which is 100 rods in length by 75 rods in width? SOLUTION. 100 X 75=7500 -r-160=46i Ans. To find the contents of a triangular piece of land, having a rectangular corner, multi- ply the two shorter sides together, and take one-half the product. 287 DISCOUNTING BILLS AND INVOICES. Coat, 40 p«r cent, Advanced price, Leu 3i) per cent., Gash price, 3 per cent, loss 30 percent, of §1.00 (cost) = 30 per cent, of .40 (profit) = or 42 per cent, of cost. $1.00 40 1.40 Ai M .80 .12 $ .43 Pbick Lists are mado out by manufaoturors and dealora, as prious to bo charged subjeot to the deJuotions of oortain rates por cent., which fluctuate according to the coat of maDufaoturing, domind for goodd, utc. By changing tlio rate of discount the prices arc changed without altering the price lists. In disouuntiag Bills and Invoices, losses soinstimcs occur when they are not suspected. If an article is sold at a profit of 40 per cent., and 10 per cent, be deducted from the selling price, the gain is not 30 pjr cent., but 26 per cent., because the discount is calculated on the first cost and also on the profit, whereas the profit isoalculited on the first cost only. So, also, if 40 per cent, be added, and then 30 per cent, deducted, the apparent profit is 10 per cent., but the rral LOSd is 2 per cent. Ooit, (200 40 per cent, 80 Advanced price, 280 Lesi 10 per cent., 28 Oaah price, 253 26 per cent, profit. 10 per cent, of $200 (coat) => $20 10 per cent, of 80 (profit) » 8 •28 » 14 percent, of cost. 3. What is the difiereace batwjen dissounting a bill of $1200 at 40 per oent., and then taking a discount off the remainder of 5 per cent, for cash payuieut, and discounting the whole bill at 45 per cent. ? Ans. $24. 4. If a merchant buys a book at a discount of 20 per cent, on the retail price, and sella it at the retail price, what per cent, on the purchase price does he gain ? What per cent, does he gain if he buys at 33^ per oent. discount aud sells it at the retail price ? Ans. to first 25 per cent. Second, 50 per cent. To find the selling price from which a certain per oent. may be deducted and the goods sold at cost, or a given per cent, above or below cost. ftuLE. — To sell at cost. Maltiply the cost hy 100, and lUuide the protluct by 100 diminished by the rate per €«nt. to be deducted. To sell at a given rate per oent. above or below cost. Multiply 100 increased by the per cent, to be gained or diininisluid by the per cent, to be lost by the cost, and diuide the product by 100 diminished by the rate to be deducteil from the selling price. EXAMPLES. 1. Bought goods for $100 ; for how much must I sell them that I may deduct 20 per cent, and yet obtain what they cost ? 100x100=10000 10000 -f- 80= 125. Ans. 125. 2. For what must I sell goods worth |100, so that I may deduct 45 per cent, and yet gain 30 per cent ? 100+30.^ 130 100 X 130=13000 10000-^55 = 236.36. Ans. «236.36. I NoTi.— 236.36=136.36 per cent, advanco on 100. When a long list is to be made out at a unifurm rate of profit, labor may bu navod by adding tliu total advanoo at onco, 3. If I buy ololh fur $1.90 per yard, at what price muat I mark it that I may deduot 6 por oeiit. fur my caali custuiuors from the mark.d prioo, and yot gain 20 {)cr cent. Anh. «2.40. 4. A morohaut marked a piece of ^flodm 25 por cent, more than it cost him, but being anxiouM ti)eift!Ct a sale, and Huppusing ho nhould itill gain 5 pur ount., Roid it at a diHcoint of 20 por cont. from hiu marked prioo. Did he gain or loite ? An8. Noithor. 5. My retail price for cloth is 1(3.75 per yard, by which I make a profit of 33J^ per cent. I Hull to a wholuHalo cu^tiimor at 20 pur cent, discount from the retail price. How much do I gain or lose pjr cent., and what do I ruuuivu per yard ? Ans. |3 ; gain 6j( |icr cent. 6. My retail price fur broadcloth is $4.75 per yard, by which I make a profit of 33^ per cent. I sell a wholesale customer lOi) yards at a discount of 30 pur cent, from the retail price. What por cent, do I gain or lose, and what du I receive per yard ? Anb. Lo8ti (i§ per cent. Kecd. $3,325 per yard. 7. I bought a quantity of tea at $1 per lb. Allowing that the tea will fall short 10 per cent, in weighing it out, and that 15 per cunt, of the sales will be in bad debts, for how much per lb. must I sell it to make a clear gain of 20 por oent. on coat ? Anb. $1,508. 8. Sold lumbef on commission at 5 per cent. Invested net proceeds in dry goods at two per cent, oommissiun. My whole commission was $70. What was the value of the lumber and dry goods? Ans., Lumber, $1020 ; Dry Qoods, $950. SuQORBTioN. — Net proceeds of lumber equal /^^ or 95 per oent. Commission on dry goods equals -]-|, of 95 per oent. — 1|^ pt^r o>iai. l|f--l-5 » 6^^. Then, if G^\ per cent, equals i;70, 5 per cent, equals $51. 9. Sold flour on commission at 4 per cent, and invested the net proceeds, less my commission at 3 pur cent, in salt. My whole commission was $250. What was the value of the flour and the salt? Ans. $3678.57 flour ; $3428.57 salt. 10. I invested in wheat the proceeds of a consignment of flour, less my commission on both, at 3 per cent., which was $60. What did I sell the flour for ? and what did I pay for the wheat? Ans. Flour, $1030; wheat, 1970. BdltviUe, Jan. 2, 1877. Mr. J. H. Bbown, Bought of 8. G. Bbatty & Co. 240 eroos Cullego Pens at $1.20. Less 5 per cent, for cash. $288 14 00 40 Express charges and duties. Rec'd payment, S. 0. Beattjr ft Co. $273 21 60 89 $295 49 At what must I sell the pens per gross to gain 20 per cent., and allow a discount of 10 per cent, from selling price ? SOLUTION. 5 per cent, of $1.20=6o. 1.20— 6 = 1.14, net cash price per gross in Belleville, Charges, 21.89=8 per cent, of total cost in Belleville. 8 por oent. of 1.14 = 9+. 1.14 4.9=$1.23, advanced cost per gross. y 289 PROOF. 00 40 60 89 49 240 pross at 11.23=^ |2ft5. 20, wliich, »llowin>,' fi>r frn«•tion^ is tlie coct of th« invoice. 20 {ler cent, of 1^1 2>'t = L'rM\ luarly; u'ldiiiti: iIiIh to ilif (■o^t, wi- liuve $1.48 M amount to bo ruuuivcl. Tiic-ii, tuobtuiii tliu Hciliiig |iri(v, 100 — 10- !)0. 148-^D0n 1.04 -f . An». $1.04 |icr gro88. rKOOF. 10 per cent, of 11.64=16. + $1.64— 10=$1. 48. 12. A iDPTchant bought an invoice of grain, which, including H per cent, oonimission, cost $6060.bi^, and paid 915.25 fur freight. IIo sold the grain ut a profit of 15 per cent, on its first c(.^t, and invested the proceeds in sugar, which he xold at 5 per cent, profit, receiving a note duo in 48 days, including grace. This note he had diwountcd at 6 per cent, at bank. What was the cost of the grain, and how umch were hia profits ? Anh. CoHt of grain, $4994.43; total profits, $916.66. The following transaction actually occurred in a commission house : 13. A commission merchant received nn order to purchase mcrchandiro worth $1000, on which he paid $50 fur drayuge. He was to ifTcct insurance at the rute of 1 per oint. on 10 per cent, advance of total coHt of niereliundi&e, drayage, oouiuiistdon for buying, and cott of insurance, and was to receive 3 per cent, commission on total cost of merchandise, dray- age, and insurance. What was the amount insured, and how much did ho receive for ooDrmission, and how much for insurance ? Ans. $1203.28; Com., $31.86; Ins., 12.03. SCGOESTION. — 1 per cent, of 3 per cent. =.0003, which added to 1 per cent. = .0103, which increased by ten per cent, of itself equals .01133, the rate of insurance on $1. $1050 increased by 3 per cent, of itself equals $1081.50, which increased 10 per cent, equals $1189.65. Then, to find the amount to bo insured to cover $1189.65 and the insurance, or .01133 of itself, we divide $1189.65 by $1, less .01133, which gives us $1203.28. 1.14 PARTNERSHIP. It 18 unncoesfary to enter into an explanation uf the terms Partnership, Finn, Capital, Net Insolvency, &a., an the student has already beuumu tamiliar witii theui in working out Ihe foregoing sets. There are tvro kinds of I'artnorship, vie. : Simple and Compound. SlmI'LE Partnkkauip ap)ilies when tlie Hevenil shares of oiipital have been invested for the fame length of time, and the gains or Iokscs arc to be divided proportionately tuthe investments. Cmmpoi'nd Partnership applies when the shares of capital have been invested for different periods of time, and the gains and losses arc to be divided according to the aver- age invehtuients ; tiiut is, in proportion to the several amounts and times for which they have been employed. SIMPLE PARTNERSHIP. Todividi' guiim and loan ftetwtenco-pirtnera in profMriiuii to their iiiveatmems, wktn tmphyed for the miu? pvriod of time. Rule. — As the vhole rajiitul it to each mau't capital, aoit the lehoh: gain or Ions to each man's shair of the yiiii or toss. Example 1. — H. W. Parton and William Woods engaged in business as partnern, and H>;recd to blare the }:aius and losses in proportion U> their investment!'. BarUm invested $0000 ; Wood.s, 8700U. They jjuined $2245.02 : what was each one's share ? boli:tion. SOOOO 7(100 $16U00 whole capital. 1**15 = 1^' ^'^ fractional part of the capital. ylJgJzr^TjrW's fractional part of the capital. •jV of 62246.G2 = SI 2(J3.1 0.— B's share of gain. ■{^ of $2245.62=8982.46— W's share of gain. Or, by proportion : $16^00: $9000:: $2245.62: $1263.16, B's share. 16000: $7000:: $2245.02: $982.46, W's share. Analysis. — The whole capital being $16000, B's share is tIJJS = A i and W's share is xV\^ — tV- ^^^ ^'i'*^*^ ^^*^ 8^*" '^ '° ^ divided in proportion to the investments, B is entitled to ^ and W to ^\ of $2245.62, the whole gain. By proportion, $16000 : $9000 expresses the ratio of the whole capital to B's invest- ment; and $16000 : $7000 the ratio of the whole to W's share : and, making the whole gain $2245.62, the third term of a proportion in each case, and finding the fourth term, we have the same result as before. 2. Two merchants enter into partnership with a stock of $4300, of which A contrib- «t«3 $3000. They gain $1117 j how should this be divided between them ? Ans. A'b sharp= $779,362. B's Bhare= $337,697 291 3. Three peraons, A, B and C, agree to form a company, for the manufacture of woollen cloths. A puts in |047(), B 33780, and C |98li0. By tlic end of the year they find they have gained 17890. Wliat portion of tliiu profit bclougt* to each? An8. A's Hharv = 125 (8.453. ■B'MBhare =$1483.053. C'HMliarf = 93808.493. 4. A, B and C entered Into partnership with n capital of $7500, of which A put in $2500, B put in $3000, am'. C put in the rcujaiiiilvr ; at titeind of tlio yiar their (;aiu was $3000 i what wan each one' J share of it? As». A'h hliaru = 91U00. B'HHhare = $1200. OV share = $ 800. 5. A and B have a joint stuck of $4200, of which A owns $.{000 and B $(i00 ; they gain, in one year, $2000 : what is each one's share kj'. he profit? An8. »A's share — $1714.29 B"d»»-)c = $ 285.7: COMPOUND rARTXKUSnir To divile gnim and losses belwetn co-fturtnrrK, in j-mporlion t'> their inicstmenU, ichtn their shares o/ capital have been employed foi Jijj'cnnt }>erutds of time. When the partners employ their capital for i<<'if/M«/ tivus, the I'f^fits cf tuth will depend on two circuuistanccs : \st, On the. amount of capital he puts in ; md 2ndli/. On the length of time it is continued in business: Therefore, the profit of each will ficrfnJon the product of thoso two tlcnients. The whole profit will be proportional to the sum of those product-i. lloiicc, the following Rur.E. Multiply each man's capit(d by the time he conUnued it in the Jinn ; then say as the sum of the products is to each product, so is the whole g'tin or loss to each man'» share. Example 1. — A put in trade $500 for 4 mouths, and B $U00 for 5 months. The; gained $240 : what wa^ the share of each ? OPERATION. A's capital, 500 x 4 = 2000 B's capital, 600 x 5 = 3000 Sum of products 5000 : 2000 ; : 240 : 96, A's. 5000:3001):: 240: 144, B's. Example 2. — W. Parker, Samuel Warren, and Milton Davis commenced business July 1, 1877, under /in agreement to share the accruing gains and losses in proportion to their investments. Parker invested, July 1, $20,000 ; July 19, $5,000 ; and July 25, he withdraw $230. Warren invested, July 1, $10,000. Davis invested, July 1, $10,000. Their net gain, August 31, is found to be $1441.94. What is each partner's share^ reckoning the exact time by days ? SOLUTION. Tho time from July 1st to August 31 is GlM.iys. Tarker's investment, July 1, $20,000, for 61 days = $1,220,000 for 1 Jay. " " 20, 5,000, " 42 " = 2H»,000 Amount withdrawn July 25, Total, $230, for 37 days = 1,430,000 8,510 His averan;e investment 1,421,490 "Warren's investment, July 1, $10,000, for 61 days = 610,000 Davis' " " 10,000, " " = 610,000 (I And, by Proportion, $2641490 2041490 2641490 Total average investment. 2,641,490 $1421490 : : $1441.94 : $775.96, Parker's share 610000 : : 1441.94 : 332.99, Warren's " 610000 : : 1441.94 : 332.99, Davis' Example 3. — A commenced business with a capital of $10,000. Four months after- wards B entered into partnership with him, and put in 1500 barrels of flour. At the close of the year their profits were $5100, of which B was entitled to $2100 : what wuh the value of the floiir per barrel ? Ans. $7. Example 4. — On the Ist of January, 1867, A commenced business with a capital of $23,000 ; two months afterwards he drew out $1800 : on the first of April B entered into partnership with him, and put in $13,500 ; four months afterwards he draw out $10,000 : at the end of the year the profits were $8400 : how much should each receive ? Ans. A, $6577.24; B, $1822.76. Example 5. —A and B enter into partnership, agreeing to share gains and losses according to capital invested. A invests $6500, B, $5400. At the end of five months A withdrew $700, and B invested $400. At the end of the year they have gained $4200. How should it be divided ? Ans. A, $2182.09 ; B, $2017.91. PARTNERSHIP SETTLEMENTS. When a partnership is dissolved, either by mutual consent or by limitation of contract the adju.' between the partnership and outside persons and things. If a creditor wished to know the financial standing of a firm, he little cares how much one partner may owe another. He wants t/S know what and how much are the resources and liabilities of the partnership ; since it is the difference of these alone that gives t^e true status. For, if the amounts with which partners are charged are to b^ included among the resources, the firm may make a large show of net capital, while, in fact, it is insolvent. So the partners' accounts, either aa to the debit or credit, can never be included among the resources and liabilities, when the real solvency or insolvency of a firm is sought. Therefore, in solving partnership problems, resource and liability will be treated exclusive of the ownership accounts. The ownership accounts seem to be the measure of successive services of the owners for given periods of time. They represent, in fact, their past labors, whether before or after they entered into the partnership. * The terms Loss and Gain represent the results of the firm's services or business dur- ing a definite period of time. Having shown that Resources and Liabilities properly belong to one class of accounts, «nd Ownership and Loss and Gain to another class, it will be readily seen in the light of the double-entry principle, how, when any two parts of the ledger are given, the third, as to its NET, can be found. For we have only to contrast the excesses of the two parts given, and supply the third to be found, with an amount which will produce an equili- brium between the two classes. 294 PROBLEMS. We will now give examples and exercises illustrating the application of the Dodble- Ent: T Principle in the solution of partnership problems. We will present them under three cases : Casb; 1. — Resource and Liability and Investment or Ownership being GIVEN, TO find NeT GaIN OR NeT LosS, AND THE STANDING OP EACH PARTNER AT GLOBING. Example. — A and B are partners. Having conducted business for a time, tlicy. close with the following property and debts. They have Cash, $3240 ; Mdse., $2575 ; Bills Receivable, $860 ; Jno. Brown owes on account, $375. They owe on Bills 4*ayablc, $1250 ; and James Jones on account, $370. A invested at commencing, $2500, and drew out, during business, $560. B mvcsted $2500, and drew out, during business, $280. They agreed to share equally in gains and losses. What is the net gain, during business ? What is the net capital of each at closing ? OPERATION. Reioureet and Liabilities. Dr. $3240 2575 8tiO 375 __^ • 7050 Resources at closing. 1620 Liabilities " 6430 Present woHh affirm. 4160 Credit excess of ownership. 1270 Net gain during business. C35 A's i net gain during business. C35 JB's " " " " Cr. $1250 370 1620 Dr. $560 A withdrew 280 B " Ownership. Cr. $2500 2500 840 Total investment 5000 " withdrawn 84) Firm's net investment 41Ci> PROOF. A's investment " withdrawal $2500 560 B's investment " withdrawal $2500 280 " net investment " ^netgaia 1940 635 " net investment " i net gain 2220 635 " net capital at closing .... 2575 " net capital at closing Add A's net capital 2855 2575 Present worth of firm. 5430 The difference of resource and liability values gives us an excess of debit, $5430, which is the present worth at closing. The difference of the ownership values gives us an excess of credit, $4160, which is the net investment. The difference of these excesses gives us a final excess of debit, $1270, which shows a net gain to that amount. The final excess of $1270, being a debit, shows just so much more resource at closing than the firm had at starting ; consequently, this amount must have been gained during the continuance of businea*. 295 2. — A and B having conducted business one year as partners, close with the following resources and liabilities. They have Cash in bank, $3456 ; Mdsc., per inventory, 92120 ; Bills Receivable, f 1874. E. A. Corby owes $630. They owe on Bills Payable, 03250 ; W. G. Smith, on account, $346. A invested, at commencing, $1500, and drew out $175. B invested $1500, and drew out $315. What is the net gain and the net capital of each at closing? Ans. Net gain, $1974. A's net capital, $2312. B's, $2172. 3. — A and B are partners, equal in investments and in losses and gains, and close with the following resources and liabilities: They have cash in bank, $3675; Mdse., per inventory, $1824 ; Bills Receivable, $1256 ; Real Estate, $2000 ; Bank Stock, $1884. They owe on Bills Payable, $2570; on Mortgages Payable, $1278; Accounts Payable, $3275. A invested $5000, and drew out $5486. B invested $5000 and drew out $6250. What is the not gain, and also net capital, of each at closing ? Beioureet and Liabilitie*. Dr. $3G75 18^4 1256 2000 18b4 10039 Resources at closing. 7123 Liabilities " 3516 Present worth of firm. 1736 Debit excess of owaersbip. 5252 Net gain, at closing. 2626 A's i net gain. 2626 B's " " OPERATION- OwMTthip. Cr. Dr. (Jr. $2570 $5486 . $5000 1273 6250 5000 3275 ' — — 11736 amt withdrawn. 10000 7123 10000 a invested. 1736 PROOF. A'S inycstment " withdrawal " overdraw " i net gain « net capital at closing. $5000 5486 486 2626 2140 B's investment " withdrawal " overdraw " i net gain " net capital at closing.. Add A's net capital Present worth of firm $5000 6250 1250 2626 1376 2140 3516 4.— A and B close business as follows: They" have Cash, $1424 j Mdse., $1562; Fixtures, $383 ; Mortgages Receivable, $3485 ; Bills Receivable, $826. They owe on Bills Payable, $2450 ; on Accounts, $1240. A invested $6000, and a debt of his to the amount of $1000 was assumed by the firm at commencing, and paid during business. He also drew out, at different times, $685 ; and is allowed interest on capital invested, $420. B invested $4000, and drew out, during business, $1860, and is allowed interest on capital, $280. A is to share 3-6 and B 2-5 of gains and losses. What is the net loss ? What is the net capital of each ? !! ktioureit and Liabilities. Dr. $1424 1S63 383 3486 826 7680 Resources at closit i(f 3690 Liabilities. 296 OPERATION. Dr. $101)0 6:^5 1860 $3690 8990 Prtient worth of firm. Ovnerihip 3.546 Invpstment Willi iJrHwal Net investmtnt Debit excess of R. k L. , Net 1*88 during business . A 's 3-5 of net loss B's 2-5 " •' A's investment., s - withdrawal " net investment " 3-5 net loss " present interest PROOF. !r6420 1685 4735 1899 2836 B'S investment " withdrawal " net investment " 2-5 net loss .... " present interest Ada A's interest Cr. $6000 420 4(K)0 280 10700 3545 7155 3990 3165 1899 12G6 $4280 1860 24'20 1266 1J54 28;w Prttent worth affirm 39'JO 5. — Jones and Brown close business with the following results : They have Cash on deposit, 83421 ; Mdse., $5789 ; G. T. E. Stock, $4321 ; Bonds and Mortgages, $G452 ; Montreal Bank Stock,$3G89 ; Real Estato,$1724 ; ^Notes and Acceptances, $432 ; Accounts Receivable, $321. They owe on Notes and Acceptances, $8924 ; on Accounts Payable, $3479. Jones invested $12000. The firm assumed a debt for him of $1500. lie drew out, during business, $000, and is allowed interest, at closing, $1000. Brown invested $6000. The firm assumed a debt for him of $750. He drew out, during business, $300, and is allowed interest, $500. Jones is to share § and Brown \ of the gains and losses. What is the nbt loss ? What is the net capital of each at closing ? Ans. Net loss, $2004 ; Jones' net capitid is $9164 ; Brown's, $4582. 6. — A and B close business, and wish to know the financial standing of each. They have Cash (m hand, $2263 ; and Real Estate worth $5000 . They owe on Mortgages Payable, $3846 ; on Note8,$4462 ; and on Personal Account, $675. A invested $6000,aud withdrew during business, $2860. B invested $4000, drew out, during business, $r)560, and is allowed for extra services, $250. A shares 3-5 and B 2-5 of gains and losses. What is the net loss ? What is the financial standing of each nt closing ? OPERATION. Meioureei and Liabilitiet- 7263 Linbilities at closing Resuurces •' " Iniolvency affirm Cr. $3846 4402 676 8983 7263 1720 Dr. $2860 5560 8420 Investment Withdrawal Ownership. Net investment Credit excess of R. ft L . Net loss during business A's 3-5 of net loss B's 2-6 " " Cr. $6000 40110 2r)0 10260 8420 1830 1720 3550 3130 1420 A's invegi " withd " net in " I net " netca 7.- They hav account, $1234.60 invested [ for extra i net loss '{ A's net ci Casi WITHDBA' COMMENC EXA and B ^ They hav( •946.30 ; $364.12. commcncii Dr. $5474.50 2584.23 946..S0 31480 93)9.83 R 1239.87 L 8079.96 1 218061 C 5899. 35' N 3032.90 A 1966.45 B' A's J investt " i netga " present i NOTB.— Til. ▼allien i«$'il,sa.i Ital at comraenc partner*' noooan and liabilities. 297 PROOF. A'8 invpstment .. withdrawal. " net inrestment " i net loss net capital., $6000 28(>u 3140 2130 1010 B's inrestment " withdrawal . " overdraw " i net logs " net insolvency Deduct A'a net capital $4250 &560 1310 1420 2730 1010 Intolvmey of firm 1720 7. — A and B dissolved partnership and wish to know the financial standing of each. They have Ca.sh, $2653.26; Bills Receivable, $1258.16 ; and amounts due on Personal account, $2831. They owe on Notes outstanding, $4428.50; John West, on account, $1234.60 ; Wm. East, on aocouit, $1380.40 ; George South, on account, $1290.77. A invested $3000, and drew out $550. B invested $2000, drew out $3525, and is allowed for extra services, $175. A shares 3-5 and B 2-5 of the losses and gains. What ia the net loss? What is the financial standing of each at closing? Ans. Net loss, $2691.85; A'b net capital, $834.89 ; B's not insolvency, $2426.74. Case 2. — Resodroe and LiABruTY, Loss and Gvin, and Amounts added ob WITHDRAWN BY PARTNER.S GIVEN, TO FIND NeT CAPITAIi OR NeT INSOLVENCY AT Commencing. , Example 1. — A and B close business and wish to ascertain results. A invested § and B ^ of the capital, and they agree to share losses and gains in the same proportion. They have, at closing, the following resources : Cash, $5474.50 ; Mdse., $2584.23 ; Notes $946.30 ; Fixtures worth $314.80. They owe on Notes, $875.75 ; and on Account, $364.12. They have lost $2345.62, and gtined $4526.23. What was the net capital at commencing ? What is the net capital of each at closing ? OPERATION. Resources and Liahililies. Dr. $5474.50 2584.23 946.30 31480 93)9.83 Resource at closing. 1239.87 Liability " 1239 87 8079.96 Present worth of firm. 2180.61 Credit excess of ownership. 5899-35 N. C. at commencing. 3932.90 A'8| " 1966.45 B's i " A'a { invostmcnt " I net gain " present interest Dr. 92345.63 Omnsrship. Net gain in business A's ] net gi\in B'bJ " " Or. •4526.23 2345.63 2180.61 1453-74 726.87 PROOF. 93932.90 1453.74 6386.64 B's } investment B's i net gain ... " present interest Add A's interest $1966.45 726.87 2693.32 5386.64 Present worth affirm 8079.96 NoTB.— The excess of debit of renonrce and liability vnlnes is •S07».!t6. The excess of credit of tho^ownershlp Tftlnes is 9-'l80.«I. The difference of these excesses Is a final debit of 9J899.M. Therefore, thisis the amount of nnt cap- ital at commencing, beftinae it will make theexeesies in the two classes equal. This U pnived by the adjnstmont of the partnero' acconnts, since the capital of tb i two eqnals the present worth , as shown by the dlff'.ence between the resonrca. and liabilities. ^ 298 2. — A and B Iiavc conducted business one year, and wish to know the present interest of each. The former invested § and the latter J of the capital, and thoy agreed to share gains and losses in same proportion. They have, at closing, the following resources ; Cash, $3724.15 ; Real Estate, $2356.14 ; Notes and Drafts, $1762.18 ; Fixtures and unexpired Rent, $942.12. They owe on Notes, $1426.22 ; and on Book Accounts, $519.33. Their losses have been $1345.71, and gains, $4625.55, What was the net capital invested by the firm? What is the net capital of each at closing ? Ans. Netcupital invested, $3559.20. A's net capital, at closing, is $4559.36 ; and B's, $2279.68. 3. — A and B, wishing to know their present intcrest-s, give the following data : They invested equally, and share in the same proportion the losses and gains. They have money on deposit, $1875.35; Lumber, $1532.50; Notes and Personal Accounts, in their favor, $684.41. They owe on Notes outstanding, $784.24; and on Personal Accounts, $365.40. Their losses have been $3464.12; and gains, $1639.46. A drew out, during busiiiesi*, $2232.50 ; and B lei t tlie firm, $1764.50. What is the net capital or insolvency of each ? OPERATION. Dr. $1875.35 1532.50 684.41 4092.26 1149.64 2942.62 2292.66 Reiourees and Liabilitiet, Resources at closing. Liabilities " " Preient worth of firm. Debit excess of ownership. Cr. 9784.24 365.40 1149.64 6235.28 Net investment of firm. 2617.64 A's \ net investment. 2617.64 B's " " " A's i investment at commencing. " withdrawal Dr. $3464. 12 2222.50 6696.62 3403.96 Ownerthip. Cr. $K.39.46 1764.50 3403.96 2292.66 Lodses during businesii Gains " " Net loss of firm PROOF. " net investment " i net loss " insolvency at closing 3464.12 1639.46 1824.06 A's J net loss 912.33 B's J " " 912.33 $2617.64 B's i investment at commencing... $2ni7.64 2232.50 " loan to the firm 1764.50 385.14 " net investment 4382.14 912.33 «' h net loss 912.33 527.19 " capital at closing 3469.81 Deduct A's insolvencj 527.19 Preient worth qffirm $2942.62 Note. — Here the difference of rssource and liability values is a debit of $2942.62 ; and the difference of the ownership is a debit of $2292.66 ; consequently, they are added, giving us $52.35.28, as the net amount invested by the firm. Such an amount must have been invested for the reason that it, with the other ownership values, is required to make the excei^8 of credit among the ownership class equal to the excess of debit among the resource and liability dumt. T\m is abundantly proved in making up the partners' accounts. A turns out insolvent, $527.19, and B has a net capital of $3469.81, the difference of which just equals their present worth, as shown by the resource and liability values. In final settlement, therefore, it will take the nut amount of property owned by the firm and A's indebtedness to pay off B. 4. — A and B- close business, giving the following data for the adjustment of their accounts : They invested equally, to share in like proportion. T!.ey have Cash, $2425.12 ; Furniture and Fixtures, $1832.14; Notes »nd Acceptances, $1756.17; and Verbal Dr. $3464.50 1325.80 275.36 126.38 178.^78 299 Promises, $354.50. Tbey owe on Notes and Acceptances, $2865.50 ; and on Verbal Promises, $842.75. Thuir losses have been $3426.39, and gains $1864.69. A drew out $2564.24, and B lent the firm $375.20. What was the net capital of the firm at com- mencing ? What is the present financial standing; of each at closing ? Ans. Nut capital at beginning, $6410.42; A's net insolvency, at closing, $139.88 ; B's net capital is $2799.56. 5. — A, B, and C, wishing to know the financial standing of each partner, give the following data : Tlicy have Cash, $3464.50 ; Bills Kcccivable, $1325.80 ; Accounts Jleceivable, $275.36, and Interest Receivable, $126.38. Tbey owe on Notes, $2538.60 ; on Accounts Payable, $734.40 ; and on Interest Payable, $135.26. Their losses have been $1375.37, and gains, $6364.90. A drew out $850 ; B drew $620 ; and C lent the firm $1230. What was the net insolvency of the firm at commencing? What is the financial standing of each at closing ? — it being understood that they were equal in their insolvency at beginning, and that they agreed to share equally the losses and gains. OPERATION. Kesoureet and lAabilxiie>. Dr. $3464.50 1325.80 275.36 126.38 5192.04 Resources at closing, 3408.26 Liabilities " 1783.78 Present worth oj firm. Cr. $2538.60 734.40 135.26 3408.26 Oicnerihip and Qaim and Losift- Dr. f r. $1375.37 $6364.90 850.00 1250.W 620.00 7614.90 2845.37 2845.37 Debit excess of R. and L. Net insolvency at commencing A'siN. I. " " Bs i " " '■ Csi " " " Gains during business. Losses " " Net Gain A's j net gain B's i " " C'sJ " " 4769.53 1783.78 298ft. 75 995.25 995.25 995.25 C364.90 1375.37 4989.53 1663.17 1663.18 1663.18 PROO' A's net insolvency at commencing $ 995.25 " vitbdrawal " insolvency without the gains " i net gain " insolvency at closing B's net insolvency at commencing " withdrawal " insolvency without the gains " \ net gain 850.00 1845.25 1663.17 182.08 995.25 620.00 1615.25 1663.18 47.93 C's net insolvency at commencing $ 995.25 " loan to the firm 1250.00 " net invesment " ^ net gain " net capital at closing Add B's capital C and B's capital Deduct A's insolvency Present worth qffinn 254.75 1663.18 1917.93 47.93 1965.85 182.08 1783.78 " net capital at closing 6. — A, B, and C at the end of one year's business wish to know the financial standing of each partner. They have, at closing, Cash, $2375.15; Bills Receivable, $1246.82; 300 Accounts Eeoeivable, $385.40 ; and Iiitorost Receivable, $138.50. They owe on Bills Pay- able, $1872.50; on Accounts Payable, $634.80 ; and on Interest Payable, $125.70. Their losses have been $1482.27, and gains, $6836.80. A drew out $1650, B drew $450, and C loaned the firm $1475. What was the firm's net insolvency at commencing, and what is the financial standing of each at closing ? — the partners being equal in their insolvency at starUng, and sharing equally in losses and gains at closing. An8. Net insolvency at commencing, $3216.60 ; A's insolvency at closing, $937.36 ; B'snet capital, $262.64 ; G's r t capital, $2187.65. 7. — A and B give the following data for adjustment : They were equally insolvent at starting, and agreed to share equally in the losses and gains. At closing they have only the following property : Cash,|$1365.50 ; and Notes and Personal Accounts amounting to $2326. They owe on Notes, $3570.75 ; A. W. Parker, on account, $335.25 ; and E. A. Kyle, on account, $545.25. Their losses have been $2264.25, and gains, $3628.50. A drew out $1150.75, and'B ent the firm $550.75. What was the firm's insolvency at com- mencing ? What is the financial standing of each partner at closing ? In this case the resource and liability values have an excess of credit, $1259.75, and the ownership vilues an excess of credit, $764.25. Both excesses being trediu they have to be added to efiect a corresponding debit, and thus throw the two classes of values into opposite and equal excesses. The suih therefore, of the two, which is $2024, is the amount of insolvency with which the firm began ; since all the other values, except those which show the state of the ownership at commencing, are given in the problem. That the $2024 was the insolvency of the firm at commencing is proved^by making up their accounts od ihis basis. OPERATION. Retoureet and Liabilitiet, Dr. fISb.'i.SO 2326.00 3t>9l.60 Liabilities at closing Resources " " Cr. $3570.75 835.25 545.25 4951.25 3691.50 Intolveney of firm at doting 1259.75 Ownership. Dr. $2264.25 1150.75 3415.00 Credit excess of R. k L. Insolvencj at commencing A's A of insolvency B's J " " Gains during business Losses " " Net Gain " 's h net gain si " " Cr. $3628.50- 550.75 4179.25- 3415 00- 764.25 1259.75 2024.00 1012.00 1012.00- 3628.50 2264.25 1364.25 682.12 682.13 PROOF. A's i N. I. at commencing $1012.00 " withdrawal 1150.76 " insolr., without the gains 2162.75 "i net gain 682.12 N. L at closing 1480.63 B's i N. \. at commencing $1012.00 " loan to the firm 550.75 " insolv., without the gains. " i net gain " net capital at closing A's netinsolv., " " 461.25 682.13 220.88 1420.63 Intolveney qf firm at elating ...... 1259 7S> 301 12.00 12.00 61.25 82.13 20.88 20.63 59 75. 8. — A and B wishing to adjust their affairs give the following data: They have Casb on hand $6023.50. They owe on Notes and Acceptances, $4680.50 ; and on various Personal Accounts, $3490.75. Their losses in business have been $3375.75, and their gains $5874.75. A drew out, during business, $2260.25, and B. lent the firm $660.50. They set out equally insolvent, and agreed to share equally in losses and gains. What was the net insolvency at commencing ? What the financial status of each at closing ? Ans. Insolvency of firm at commencing, $3047 ; A's net insolvency at closing is $2534.25 ; B'» net capital is $386.50. Case 3. — Ownership and lots and gain being given tojlnd net resource or net liability. It will hardly be necessary to give examples and exercises under this case, for the reason that, whiar, dissolve partnership. B retires, leaving A to continue the business and liquidate the debts of the firm. A invested $12,000, B .$10,000. Each is to receive interest on his investment, and share the gains and losses equally. How much did each gain ? what is A's capital at closing, and how much should he pay B on retiring, the resources and liabilities being as follows : SOS Seiouree*. Cash on band, «5 ooo Fersunal debts due firm per _ Ledger $12,000 Less 25 per cent, for bad debts, 3,000 9,000 Mdse. as per inventory, io,530 Btlls Receivable, 3 500 Mortgage Rec, 4*000 Accnitd interest on above, 120 Real Kstate (store and lot), 6,500 Store Fixtures, 350 Total Resources, Liabilitiet. Personal debts firm owe per Ledger, Bills payable, Interest on notes and drafts, |fl,no ISO Total Liabilities, 12,500 45,000 OPERATIONT. Total resources, " liabilities, Firm's net capital at closing, Interest on A's investment $12,000 for 1 year, " B's " 10,000 " Firm's net capital at closing, A's investment, $12,000 Interest for 1 year, 720 B's investment, $10,000 Interest for 1 year, 600 $45,000 12,500 $32,500 = $720 I = COO $32,500 12,720 10,000 Firm's net gains in business, A's investment, $12,000 Interest for 1 year, 720 His i net gains, 4,590 A's net capital, $17,310 A's net capital, B's " Firm's net capital, as before, B's investment, Interest for 1 year, His i net gains, B's net capital, $17,310 15,190 23,320 $9,180 $10,000 600 4.590 $15,190 $12,600 2 — D and E are partners ; each invested $3000, and agreed to share the gains and losses equally. During the year, D drew out $600, and E $500. What were their gains at the end of the year, their resources and liabilities being as follows : Jieiourcet. Cash on hand, $3,500 Mdse., as per inventory, 3,G00 Bills Receivable, 1 20O Debts due firm, as per Ledger, 2,500 Total resources, Liabilities. Debts firm owe, as per Ledger, £ills Payable, $1,.500 800 D invested Less amount withdrawn, D's credit balance, E invested Less amount withdrawn, £'s credit balance. Balance of investments, Total liabilities. Firm's net capital at closing, $3,000 600 $10,800 2,300 $8,600 3,000 600 $2,400 $2,500 Firm's net gains, 4,900 $3,600 303 PROOF. D inTested Withdrew $3,000 600 E inrested Withdrew i net gains, E's n3t capital at cl Hing, $4,200 4,3fK) $3,000 ISO t J net gains, 2,400 1,800 2,500 1,800 D's net capital at closing, D's net capital, E's net capital. $4,303 $^t,:ioo Finn's net capital as ahore, $8,500 3. — A, B, and C form a partnership ; A invests $15,000, B $12,000, and C nothing. They share the gains and losses as follow, — viz : A J, B ^, C J. A draws out during the year $800, B $900, and G $400. What is each partner's cnpital, and what are the gains at the end of the year, when their resources amount to $40^000, and their liabilities to $44,000 ? OPERATION. Liabilities, Less resources, $44,000 A's investment, $15,000 40,000 Less am' t withdrawn, 800 $14,200 Firm's net insolvency, $4,000 $14,450.00 9,633.S3 4,810.67 $28,900.00 15,000.00 800.00 B's investment, $12,000 Less am't withdrawn, 900 11,100 A's k loss, B's j, " C'si " Less am't withdrawn by 0, Firm's net investment. Add Firm's insolvency, Firm's net loss, A's i loss, ^fBt investmeit, A's net insolvency, C's ^ loss. Add amount withdrawn, C's net insolvency, $ 250.00 5,216.67 25,300 400 24,900 4,000 Total losses, A's investment. Less amount withdrawn, $28,900 14,450 14,200 B's investment. Less am't withdrawn, $14,200.00 $12,000.00 900.00 250 $4,816.67 400.00 Less his } loss, 11,100.00 9,633.33 $5,210.67 B'3 net capital, $1,466.67 A's insolvency, C's " Deduct B's net capital. Firm's net insolvency. 5,466.67 1,466.67 $4,000.00 In which atalary is allowed each partner. Ifo interest account kept. • 4. — A, B, and C entered into partnership, January Ist, 1876. A and B each invested $7000, C invested $14000. A's share of the gains or losses was J, B's J, and C's ^. A was to receive a salary of $1000 per year, B $1500 and C $500, for services. A drew out $650, B $450, and C $900. What was each partner's interest in the firm, January Ist, 1877, when their resources were $54,500, and their liabilities $13,500? Resourcrt, Liabilitiei, 8M OPERATION. Firm's net capital, *7,0.0 l,0> C's " Firm's net capital, as above, Net capital, $10,350 11,050 19,600 $41,000 $19,600 in which amounis withdrawn are averaged, and interest is charged and allowed. 5. — A and fi entered into partnership January Ist, 1876. A invested $12,000, and B $14,500, the gains and losses to be shared equally ; each partner to be allowed 6 per cent, on his investment, and to be charged at the same rate on sums drawn out. A drew as follows: March Ist, $300; July 9th, $260; September 10th, $200; December 16th,$150. Bdrew, April 7th, $100; August 4th, $400; November 23rd, $250. What was each partner's interest January 1st, 1S77, their resources and liabilities being as follows: Kttoureet. Cash, $ 3,600 Personal debts due firm, 16,000 Bills Receivable, 1,400 Mdse., as per inventory, 26,000 G. T. R. R. Stock, 6,000 Total resources, $53,000 Liabilitiei. Personal debts firm owe. Bills Payable, Total liabilities, Firm'* tut capital, $11,500 500 12,000 41,000 $63,000 Average date of amount withdrawn by A, July 6tb. « " « B, Aug. 26th. 305 A's investment, $12,0no Less amt. withdrawn, 900 $11,100 B's Investment, $14,r>00.00 liess anit. withdrawn 750 0o9l3,7C0.00 Interest on investment, $12,000, for 1 year, 720.00 Less interest on $9U0 withdrawn, from average date, Juljr 6th to Jan. 1st (178 days). 20.70 693.30 Int. on invomm't $lt,.'i00, for 1 yea-, 870.00 Lea int. un $7.'iO withdrawn, from average dute, Aug. 26 to Jan. 1 (127 days), 15.87 B's credit balance. S54.13 A's credit bal., $ll,79;i.30 $14,604 13 Firm's net capital A's credit balance, ' $11,793.30 B's " $14,604.13 $41,000.00 26,397.43 Firm's net gains. $14,602.07 A's investment, less amount withdrawn, $11,100.00 Ct 'H balance of interest, 693 30 H ' juins, 7,301.29 B's investment, less amount withdrawn, Credit balance of interest. His j gains, B's net capital « $1.3,750.00 854 13 7,301.28 A's net capital, $19,094.59 $21,905.41 Firm's net capital, as above, *4i,000. 6. — A and fi commenocd buainesa as partners. A invested $20,000, and B $10,000, A sharing § and B if of tho gains and losses. No interest account was kept. A drew out 41700, and B $2150. Their ansets at the close of the year consisted of— Cash, $4200; Bills Beceivablc, $8800; Mdse., $26,000; and Personal Debts, $16,000. 10 per cent, nf tho personal debts are considered bad. Their liabilities arc — Bills Payable, $3250 ; Personal Accounts, $11,250. If B should retire from the firm, how much ought he to receive ? Asieti. Cub, Bills Receii Mdse., Personal a rable, ccts., less 10 per cent. it drawn out, Dr. Drawn out, Balanet, Drawn out, Balanet, $4,200 8,800 26,000 14,400 Add amoai 53,400 3,850 $57,250 A's acct. 1,700 26,800 28,500 B's acct. 2,150 : 12,100 $14,250 Liabilitiet, Bills Payable, Personal accounts, Capital invested, Firm't net gain, Cr. Capital, f net gain, Capital, \ net gain. $3,250 11,250 14,500 30,000 41,500 12,750 $57,250 20,000 8,500 28,500 10,000 4,250 $14,250 J 306 TO EEDUCE DOLLARS AND CENTS TO STEELING MONEY. Rule. — Divide the given sum hy the value of £1 sterling ($4.8674), the quotient will be pounds sterling and decimals of a pound. Reduce the decimcd part to shillings and pence. Example.— Reduce $149.83 to sterling money. OPERATION. 749.83 -~4.867=£1-54.0641=£154 Is. 3Jd. Ans. EXERCISES. 1. Reduce $1006.90 to sterling money. Ans. £206 178. 7Jd. 2. Reduce $916.87 to sterling money. Ans. £188 7s. 8Jd. 3. Reduce $2114.81 to sterling money. Ans. £134 10s. 4|d. "^ TO REDUCE STERLING MONEY TO DOLLARS AND CENTS. Rule. — Express the given sum decimally and multiply by the par value of £1 ster- ling {'i Ml). Example. — Reduce £78 lis. 4|d. to dollars and cents. OPERATION. £78 lis. 4fd.=£78.5697916 and £78.5697916x4.867 = $382,399. Ans. EXERCISES. Reduce £2043 lis. 3d. sterling to dollars and cents, Ans. $9946.01868. Roduce £777 73. 7d. sterling to dollars and c^nts. 1. 2. 3. An3. $3783.50437. Reduce £557 19s. S^d. sterling to dollars and cents. Ans. $2715.65418. ONTARIO BUSINESS COLLEaE. BELLEVILLE, ONT, ESTABLISHED BY S. G. BEATTY IN 1868, Is an Institution for tiie TRAINING of ACCOUNTANTS, and for imparting a THOROUGH COMMERCIAL EDUCATION. Its Principals have had long experience in some of the largest importing, manufactur- ing, and Joint Stock concerns in Canada, as accountants and financial managers. They are authors of the Standard Canadian Works on Book-Keeping : , "THE CANADIAN ACCOUNTANT," (Now in its Sixth Edition), and "JOHNSON'S JOINT STOCK 00. BOOK-KEEPINGf," (Now in its Third Edition), And one of them is a member of the Council of thoj Institute of Chartered Accountants; of Ontario. It is the largest and most thoroughly -equipped Institution in Canada, making Business Education a specialty. The fame of the College has created a demand for its graduates, who are to be found throughout the Dominion, the West Indies, and in the United States; filling first-class positions, or conducting business for themselves. Students are now, and have recently been, in attendance from Bermuda and Turk's Islands, W^'-st Indies, Nova Scotia, New Brunswick, New York City and State, Pennsylvania, Illinois, Michigan, Vermont, North West Territories, Newfoundland, Quebec, Manitoba, and every County of Ontario. Its course of training and the practical results of its teaching have gained it the first place among the Commercial Colleges, not only of Canada but America. The Institution confidently invites business men, manufacturers, farmers, professional men, mechanics, and others who have sons to educate, and young men themselves, to inquire regarding it. Tuition is as low as in any other first-class Commercial College, and board in private families is only $2.50 to $3.00 per week. The average time for completing the course, by those possessed of ordinary commoa school education when entering is 4 months. Students may enter at any time. Address, ROBINSON & JOHNSON, Ontario Business College, -* Belleville, Ont, Send/or College Circular. JOINT STOCK COMPANY BOOK-KEEPING, BY J. W. JOHNSON, A MEMBER OF THECOU NCII. OP 1 HE INSTITUTE OF CHARTERED ACCOUNTANTS OF ONTARIO. PUINCIPAL OF ONTARIO BUSINKSS COLLEGE, BELLEVILLE, ONT. It contain! a coinpleteMlgest of the law atTectine Joint Stock Companies, tlie manner of forming them, and a complete eluciilation, in a practical form, of JOINT STOCK COMPANY BOOK-KEEPING. Accountants and Managers, Directors and SliareltoUlors of Joint Stock Companies will And it most raluable, Jt is bigUly recommended by Accountants and uU the leading Commercial JournaU of Canada. PllICESl.OO. POST PAID. Addrksh, ROBINSON & JOHNSON, ONTAKIO BUSINESS (JOLLEGE, BELLEVILLE, ONT. •-■ The followine are examples of the many favorable expressions of opinion giTen bj Commercial Journals and practical Accountants regarding the work: Toronto, lllh June, 1878. Dkar Sib,— I have looked over your work on " Joint Stock Book-Keeping," and think it un admirable book -«n the subject of which it treat:). It is concise, and therefore oanily mastered, and the examples both in book^ and accounts well cho-en and ilhistrated, and must prove useful to learners of Book-Keeping, and to those unacquainted with Joint SVJck business. With many thanks, I remain. Dear Sir, J. W. JOHNSON, Esq. , WM. K. ORR, Ci" • udltor. Belleville, Out. (Montreal Journal of Commerce.) We referred last week to a work on " Joint Stock Company Pook-Kceplng," issued by J. W. Johnson of Ontario Buainess College, Balleville, We have since then further examined the work, and are forcibly impressed with its excellent character. We consider it indispensa^ile to any one who is called upan to do with the books of Joint Stock Companies, and would strongly recommend it to the attention ot° practical accountants. BEATTTS GUIDE TO ELEGANT WEITING, ISSUED IN FOUR FARTS. A Self-Instructor in the latest and Most Approved Style of Penmanship. Any person of ordinary ability may learn from it to be a rapid, elegant penman. Itfconsists of a book of 50 pages, fully explaining and illustrating the subject, a series of Copy Slips, of convenient size (9 by ;t inches) to move along t'le paper while practicing, containing over l(iu copies, beginni.ig with the tir.Ht principles, and gradually progressing to elegant writing of all kinds : an OrnamfntalShect, containing German Text, Old English, and Ornamental Lettering, otf-hand flourishing of birds, swans, etc.; and a, paper casu beautifully engraved, to contain them. Teachen, Accountants, and every person desirous of becoming good writers should have one. The Whole Combination sent by Mail, Fost paid, for 50c. Address, Robinson & Johnson, ONTARIO BUSINESS COLLEGE, BELLEVILLE, ONT. THE BEST PJENS IN USE. We have recently imported 600 gross of the Oniario Business College Double Elastic Steel Pen, Manufactured to our own order in Birmingham, Tlimepensareof superior workmanshipand quality, and, in Fineness, Action, and Smoothness of Execution «re nnequaled by any other pen in this country. They are used exclusively by the STUDENTS and PENMEN of this INSTITUTION. They are put up in Grots and Quarter-gross boxes, and will bo sent by Mail at the following prices ;— One Gross, Fost paid, $1.25 ; Quarter-gross, 36 cents. Address, for any of the foregoing, ROBINSON A JOHNSON, ONTARIO BUSINESS COLLEGE, BELLEVILLE, ONT, PING. 3P ONTARIO, ig them, and ^ most Taluabie, N, .LE, ONT. I Jounula and 1 June, 187P. Imirable book both in book^ ;, and to tboso Sir, i* ♦ uditor. V. Johnson of bly impressed b the books of I. riNG, :!opy Slips, of es, begiiini.ig lucntalShet't, ans, etc.; aud on, 'ILLB, ONT. £. r ) yt Execution irlces :~ IN, LLE, ONT, J