CIHM 
 
 ICMH 
 
 V,: 
 
 Microfiche 
 
 Collection de 
 
 
 Series 
 
 microfiches 
 
 
 (l\/lonographs) 
 
 (monographies) 
 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian da microraproductions historiq 
 
 uas 
 
Technical and Bibliographic Notes / Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best original 
 copy available tor filming. Features of this copy which 
 may be bibliographically unique, which may alter any of 
 the images in the reproduction, or which may 
 significantly change the usual method of filming are 
 checked below. 
 
 Coloured covers / 
 Couverture de couleur 
 
 □ Covers damaged / 
 Couverture endommagte 
 
 □ Covers restored and/or laminated / 
 Couverture restaur^ et/ou pellicul^e 
 
 I Cover title missing / Le titre de couverture manque 
 
 I I Coloured maps / Cartes gdographiques en couleur 
 
 Coloured ink (i.e. other than blue or black) / 
 Encre de couleur (i.e. autre que bleue ou noi 
 
 Coloured plates and/or illustrations / 
 Planches et/ou illustrations en couleur 
 
 I I Bound with other material / 
 
 I noire) 
 
 D 
 
 
 D 
 
 D 
 
 Reli^ avec d'autres documents 
 
 Only edition available / 
 Seule Edition disponible 
 
 Tight binding may cause shadows or distortion along 
 interior margin / La reliure serrte peut causer de 
 I'ombre ou de la distorsion le long de la marge 
 int^rieure. 
 
 Blank Ipaves added during restorations may appear 
 within the text. Wtienever possible, these have been 
 omitted from filming / II se peut que certaines pages 
 blanches ajout^es lors d'une restauration 
 apparaissent dans le texte, mais, lorsque cela 6tait 
 possible, ces pages n'ont pas 6\6 f ilm^es. 
 
 Additional comments / 
 Commentaires supplemental res: 
 
 Thia Itwn la f ilnwd at Ufa raductlon ratio chackad balow / 
 
 Ca documant aat film* au taux da rMuetion indiqu* ci-daaaoua. 
 
 L'Institut a microfilm6 le mr illeur exemplaire qu'il lui a 
 6t6 possible de se procurer. Les details de cet exem- 
 plaire qui sont peut-dtre uniques du point de vue bibli- 
 ographique, qui peuvent modifier une image reproduite, 
 ou qui peuvent exiger une modification dans la m6tho- 
 de normale de filmage sont indiqu^s ci-dessous. 
 
 I I Coloured pages / Pages de couleur 
 
 [\/j Pages damaged / Pages endommag6es 
 
 n 
 
 Pages restored and/or laminated / 
 Pages restaur^es et/ou pellicul^es 
 
 Pages discoloured, stained or foxed / 
 Pages dteolor^es, tachet^es ou piqu^es 
 
 I I Pages detached / Pages d6tach6es 
 
 |\/| Showthrough / Transparence 
 
 I I Quality of print varies / 
 
 D 
 D 
 
 D 
 
 Quality in^gale de I'impression 
 
 Includes supplementary material / 
 Comprend du materiel suppl^mentaire 
 
 Pages wholly or partially obscured by errata slips, 
 tissues, etc., have been refilmed to ensure the best 
 possible image / Les pages totalement ou 
 partiellement obscurcies par un feuillet d'errata, une 
 pelure, etc., ont 6t6 film6es ^ nouveau de fa?on h 
 obtenir la meilleure image possible. 
 
 Opposing pages with varying colouration or 
 discolourations are filmed twice to ensure the best 
 possible image / Les pages s'opposant ayant des 
 colorations variables ou des decolorations sont 
 film^es deux fois afin d'obtenir la meilleure image 
 possible. 
 
 
 lOx 
 
 
 
 
 14x 
 
 
 
 
 18x 
 
 
 
 
 22x 
 
 
 
 
 26x 
 
 
 
 
 30x 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 12x 
 
 
 
 
 16x 
 
 
 
 
 2Qll 
 
 
 
 
 24x 
 
 
 
 
 28x 
 
 
 
 
 Z] 
 
 32x 
 
The copy filmed h«r« has b««n raproductd thanks 
 to tha ganarosity of: 
 
 National Library of Canada 
 
 L'axamplaira filmi fut raproduit grica A la 
 g*n4rosit* da: 
 
 Bibliotheque nationale du Canada 
 
 Tha imagas appaaring hara ara tha bast quality 
 possibia considaring tha condition and lagibility 
 of tha original copy and in kaaping with tha 
 filming contract spocif icationa. 
 
 Original eopias in printod papar covars ara filmad 
 beginning with tha front covar and anding on 
 tha last paga with a printad or illustratad impraa- 
 sion, or tha back covar whan appropriata. All 
 othar original eopias ara filmad beginning on tha 
 first paga with a printad or illustratad impras- 
 sion, and anding on tha last paga with a printad 
 or illustratad impression. 
 
 The laat recorded frame on eech microfiche 
 shall contain ^ha symbol "^^ (meening "CON- 
 TINUED"), or the symbol V (meaning "END"), 
 whichever applies. 
 
 Les images suivsntes ont iii raproduites avac la 
 plus grand soin. compta tanu de la condition at 
 da la nettet* de I'exemplaira film*, et an 
 conformity avac les conditions du contrat de 
 filmage. 
 
 Lea axempleires origineux dont le couvertura an 
 papier eat imprim4a sont filmis en commanpant 
 par le premier plat at an carminant soit par la 
 darniire page qui comporte une empreinte 
 d'impression ou d'illustration. soit par la second 
 plat, salon le cas. Tous les autres axamplairas 
 originaux sont filmAs an commandant par la 
 pramiire page qui comporte une empreinte 
 d'impreasion ou d'illustration at en terminant par 
 la darniire page qui comporte une telle 
 empreinte. 
 
 Un des symboles suivents apparaitra sur la 
 darniire image de cheque microfiche, salon !e 
 cas: le symbols ^^ signifie "A SUIVRE". le 
 symbole ▼ signifie "FIN". 
 
 Maps, plates, charts, etc.. may be filmed at 
 different reduction ratios. Those too large to be 
 entirely included in one exposure ere filmed 
 beginning in the upper left hend corner, left to 
 right and top to bottom, as many frames as 
 required. The following diagrams illustrate the 
 method: 
 
 Les cartes, planches, tableaux, etc.. peuvent etre 
 film*s i des taux da reduction diff^rants. 
 Lorsque le document est trop grand pour dtra 
 raproduit en un seul clich*. il est film* d partir 
 de Tangle supArieur gauche, de qauche i droits, 
 et de haut en baa. en prenant le nombra 
 d"images nicessaira. Las diagrammes suivents 
 illuatrant la mAthode. 
 
 1 2 3 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 '2 >i». *. -I .* A 
 
MICROCOPY RESOIUTION TBT CHART 
 
 (ANSI ond ISO TEST CHART No. 2) 
 
 A APPLIED IIVMGE 
 
 1653 East Main Street 
 
 Rochestr- New York 14509 USA 
 
 (715) WO -Phone 
 
 (716) i89-Fa» 
 
I 
 
 ? 
 
 / 
 
 ^ 
 
 '^ 
 
 y 
 
 r' 
 
 
 / 
 
 /c /9, 
 
 / / 
 
 yj 
 
 f 
 
 / 
 
 /'■' 
 
 ^ , / KJ-Uti-i^' 
 
 'J, . ., ^ y^/ 
 
 <c^ oC *- c 
 
 y/- • /^ 
 
 Q" 
 
y. 
 
 a -/// 
 
 ^ " ( A ' , *^ 
 
 F= . 
 
'^m^7'^i-'''^']^!r'^^^m 
 
THE 
 
 Public School Book-keeping 
 
 CO\l'AlM\(; 
 
 ILLUSTRATIONS OF TilE LATEST AND IIKST MKIIIODS 
 OF KEEFINC; ACCOUNTS BY 
 
 SINGLE AND DOUBL1-: ENTRY 
 
 BUSINESS FORMS, CORRESPONDENCE, AND NUMFROUS 
 CLASS EXERCISES; 
 
 BY 
 
 H. s. Maclean, 
 
 Vice- Principal Mniiitoha Normal School ; Author of Iiitroditctory Geometry , Hiitti on 
 
 Teaching Arithmetic, etc. 
 
 3Vtttliori£rb bti the €buc;itioii ^fpiirtmcnt of ^tcto ^runaUiirli. 
 
 TORONTO : 
 
 THE COPP, CLARK COMl'ANY, LIMITED. 
 
 1901. 
 
 Bit 
 
I ; 1 — ■■ w -^ ^ 
 
 
 Entered according to Act of the Parlian>enf of Canada, i,, the .ve,r one thousand nine hundred 
 ami one, l,y Tr.K Corp, Clark Comi-anv ■,,>,„««, Tormito. Ontario, in the Otti.e of the 
 Minister of Agriculture. 
 
 (I rmi 
 
PREFACE. 
 
 Although hook-koepin- us .-i scienco aims .lirectly at bringing into 
 view the principles uiulerl^-ing the recording ,.f In.sinoss transacUu.^s in a 
 systematic and convenient manner, yet as a school sul,j,.ct it means much 
 more than this. It exercises the intellect in comprehending, relaun-' and 
 expressing the facts .ith which it deals, and in deducing results^from 
 them; it emphasizes the importance of definite form, orderly arrangement, 
 an.l neat execution ; it cultivates the habit of accuracv, furnishing in itself 
 tests of correctness; and it affords the best opportunities of in.pressing 
 upon the pupil that real success in business depends on possessing such 
 qualities as politeness, promptness, thoughtfuln.-ss, uprightness, etc., and 
 on giving effect to these in all <lealings with others. Further, the know- 
 ledge gained by the study of book-keeping has a high practical value in 
 almost every sphere of life. 
 
 In its general plan this book is designed to lead the pupil to -n-asp the 
 principles of book-keeping one aft.r another by co.isidering p-trticular 
 eases carefully selected for this pur, a.e, and to give hhn such practice in 
 applying the knowledge thus gained as will enable him to proceed on sure 
 ground from each point of attack to the next, in mastering the subject. 
 
 While the aim has been to make the course thoroughlv practical in 
 respect to both mutter and method, care has been taken .u.t t<, render 
 obscure what is fundamental by introd.icing details of business, fonns ..f 
 lx)oks, accounts, etc., which could not be comprehended or apprr-ciated bv 
 beginners. Such advanced work is to be found in the High School Book- 
 keeping, m addition to what appear^ iu this ix^ok. 
 
 B THP] AUTHOR. 
 
BOOK-KEEPING. 
 
 CHAPTER I. 
 
 INTEODUCTGHY. 
 
 That every person, whether actively engaged in business or not, should 
 keep some record of his dealings -with others, is conceded by all. The 
 teacher or student, as well as the merchant, should keeji a set of books, 
 or one book at least in which to enter business transactions. As might be 
 supposed, there are different methiMls of keei)ing books. No doubt there are 
 certain well-d fined principles which should always be adhered to, l)ut the 
 appli^ tion of these must ever depend largely oii the nature of the trans- 
 actif o recorded. A blacksmith might find one "account b(M>k " all that 
 woi .(i be necessary for his purpose, while a banker would rcMjuire to use 
 several books. Both parties should have the same o])ject in view, viz. : 
 to shew clearly, expeditiously, and accurately the true state of their affairs. 
 
 The pupil must endeavor to take a firm grasp of the principles, for wlioti 
 these are mastered the details of anv particular metluKl will present but 
 little dilficulty. 
 
 T5y a business transaction we mean the e.xchange of values, {.,'., 
 that something which has a financial value is give n for .something else t<) 
 whiih an e<[ual financial value is attached. When \V3 n^ceive fir j.;iv 
 money, get or give for value a note, check or any other valuable '•- 
 sideration, a business transaction takes place. 
 
 Goods are said to be bought or sold on credit when actual payment ^ 
 not made for them at the time the transaction takes place. 
 
 Example I. — We sell John Smith on credit 2 bush, wheat at 70c. per 
 bush. 
 
 As John Smith gives us no value at the time the transaction occurs, Mf 
 must hold him responsible for payment ; or, in other words, we must charge 
 the amount to him. In this way we shew by our books that he owes us 
 $1.40. 
 
 Example IT.— We buy of L. Mason on credit 12 lbs. of tea at 60c p«r Ik. 
 
 
 
■ uooK-KKi:n\r;. 
 
 As we get value from L. Mason •.viflioufc oivini,' v.-.liio hi rotum at the 
 fiin.«, wo nuist make such ai, r..(iv as will .sh..w (hat w.. aro iii.h4)((><| to 
 him to tho oxtcnt of Sr."JO. 
 
 By a Cash tia.is,i<(io.i w<! ni.-an (liat cash has hocn received or L'iven for 
 ivme other thinir * 
 
 Example I.— We sell H. Crosby a fanning mill for cash $30. 
 
 In this case we cannot charge 11. Crosby with the amount, as he has 
 ^jven cash in paymeul. ]Jut as we hav.^ received cash we must make 
 our bcmks show this fact. 
 
 Example TT.-AVe buy of A. Ililker for cash V2 lbs. of sugar at 
 yc. j)er lb. ° 
 
 As we i«iy i,^. the sugar, tho lousiness relations which existed between A 
 Hilker and us before the t.'aasiiction took place have not been changed 
 but we nmst make our books show that we have i)aiil out cash $1.08. ° ' 
 
 ACCOUNTS. 
 
 When we have dealings with a person a very simple method of record- 
 ing them is to write the name of the person in a p/ain, large ham! 
 and to write the items below it. Again, when we receive or pay out 
 money, we may write the word "Cash" as our heading and pk/e the 
 diHerent amounts l)elow it. Wo may aiso divide the items into two classes. 
 lor exiuujile, in each cash transaction money is either received or paid 
 out. W e may. therefore, place all amounts received on one side and 
 all amounts 2>aid uut on the other side of the account headed " Cash." 
 
 A similar division can be made of the items of all other accounts; but 
 a clear idea of this can be obtained only by means of examples. 
 
 A number of items collected under a lieading is termed an Account. 
 Every amount has two sides, the .e to the le/t being called the 
 Debtor (Dr.) side, and the one to the ritjht the Creditor (Cr.) side. 
 
 PEESONAIi ACCOUNTS. 
 
 An account kept with a person, a firm, or a corporation is called a 
 Personal Account. 
 
 It is customary to place all amounts which a persan owes us on the Dr 
 Bide of the account which we keep with him, and all amounts which we 
 owe him on the Cr. side. 
 
 EXAMPLE. 
 
 July 1, 1886. Sold James Brown on credit 1 Reaper at $80. July 6 
 Sold him two waggons at $45 each on credit. Sept. 13. Received from 
 hun 25 bush. Wheat at 70c. i)er bush. Sept. 20. Received from him 
 
 mmL^M^ 
 
 ii- -r :35^/i 
 
BOOK-KEKI'l.Vfi. 
 
 on ac^unfc cash p. Sept. 21. SoM l,i„. on .u-count 1 J!„.,.,v ;.t .«S< 
 Sept 30. Reee.vo<l tn.m him L'.", l,„sl,. ]!..„! y at r,(;... an.l .-.■..shTiV). J|.,w 
 does tlio aocount .sf.ui.I (.ri fho ;{0.1; of Septemljer? 
 
 Dr. 
 
 /fur Arcr)Uht\ 
 VAK;llli.,t lliMlJ 
 
 JAMES BROWN. 
 
 /!Iis Ac,raiiiit\ 
 VAttaliuil U».y 
 
 ^r. 
 
 Jul;, 
 Sep. 
 
 Oct.\ 1 
 
 1 Reaper 
 
 ~ 'lYufjgons at ^.}.: . . 
 i Bugffif 
 
 Balance from old a/c. 
 
 
 
 ISSG 
 
 Sit 
 
 
 Sri,. 1.1 
 
 UU 
 
 
 " ..'1/ 
 
 H 
 
 
 1 
 
 * i 
 
 2.-j.i 
 
 ! 
 
 
 
 rn^-. 
 
 
 
 
 
 m 
 
 
 
 
 -'■' hiuih. Wheat at 70c. 
 
 ( Vw/t 
 
 ~ ; liiigh. Bnrhij at .~iUc 
 C'lixh '. 
 
 lialaiice in our favor. 
 
 17 
 
 an 
 
 IJ 
 SO 
 
 SO 
 174 
 
 so 
 
 When a dealer wishes to know mereh, how an account .lands he a.Ms un 
 h.,,u,,ne, c..lunniouthe])r. .si.le, an.l .hI.so the one on the Or side an 
 linds the difference between these sums. ' 
 
 If ho wishes to close the account ho a.kls the eolumns and finck the 
 hfference b..twe,.a tl.e.n. _ He then places the difference on the smaller 
 SI. e, making the entry in r.^l ink, and rules lines across the t .^i 
 clumns, as shown by the exan.ple given. The totals, X h are of uS 
 o.,ual, are put down and double lines ruled innnLliately be'ow th en 
 across the money columns. The accou.it is then said to be cLel 
 
 T.i the following exercises the items are to be arran-er 
 proper headings. u,,iaMg,u 
 
 ■nder tiie 
 
 EXERCISE I. 
 
 October 1, 188G._Sold John Jamieson on credit goods valued at 
 •^W. 5. John Jamieson pai.l ma on account cish iftin Q << i i r i 
 Jamieson 10 bush. Barley at 50c. !'> Rerdve 1 f. T l t ^°''" 
 
 2 bbls Potatoes -if 'J^l r-.n 1-. r . 7 ^^'-^^^^d from John Jamieson 
 aocoimt,^ '^''^'' Jamieson paid me cish in full of 
 
 EXEBCISE II. 
 
 October 16. 1886.— Wm, Muir owp, n,r, on account <^"t «; ] 1 i ■ 
 
 lt& 'Th * ''^- ''■ ^'''' '"^ ' '-''' ^' CloSraf $lt and O er r; 
 
 ' 6.^He paid me oSh^"" on'""""'; V''''' °' ^"^^ ^' ^« ^^ cashTo 
 ITT. ^ ^ *^" '^^ account. How murh f]nt>a l.o c*;ii o 
 
 What appears on the Dr. side? What on Jhe Cr. ? lie .till owe me ? 
 
% UOOK KKKPINO. 
 
 K < l5i<CISE 111. 
 
 Nov. 1, 188r)._F!ol(l L hi^un 24 ^.ll^Il. anloy nt 55c., antl 12 bush 
 
 ^V\^cnt lit T'lc. X Sold A Tilkor 2R bush. 0;i».s .it Mc. Received from 
 
 L. ^Afjison on iiccount, cash .viO. .'. "Houj^ht <>F N. I>. ArcKiiiiion, 20 conls 
 
 W.H,d (it Pl.r.O 6, Rocoivrd fmni A. llilkci, L' t ll.s. Cheese at lie. 
 
 Paid X. T>. >rcKiiiin)ii, cash in full of jKcounl, .* S<>1<1 h. Mason, 120 
 
 hush. f)ats at .3."if. Reejivod com A. llilker, cash \\. full of account, 
 
 $ -. What do<s the Pr side of a IVisonal acct. show ? ^\'hat the Cr. i 
 
 When the Dr. side is the greater, in whose favor is the difference between 
 
 ^he sides? Wliy '? What is a Persouid account ? 
 
 (NoTK.— The pill)!) U rcquirrd to np^n in proper form nn account with e*ch penon with whom he 
 doea hiisincM on credit.] 
 
 CASH ACCOUNT. 
 
 A Cash Account is kept tx) show the amount of cash received and 
 cash parted with. The phm adoptcil is to put all amounts of wish which 
 are dden into the business on the Di'. side, and all amounts //rtr^ft/ ?''i</f on 
 the Cr. side of this account. 
 
 EXAMPLE. 
 
 Nov. 1, 1886.— Cash on hand, $1 0. 4. Paid for a hat, $2. 6. Received 
 week's wages, $5. 8. Paid for a cojit, 87. 10. Paid to C. Cameron on 
 acctjunt, 50c. 13. Received week's wages, $5. 17. Paid for a pair <»f 
 boots, !?4. 20. Received weeks wiiges, .^5. 23. Paid for fuel, $1.50. 
 27. Received week's wages, §5. 30. Bought for cash a vest at $2.50. 
 Find the amount of cash on hand. 
 
 Dr. 
 
 (Received.) 
 
 CASH. 
 
 (Parted with.) 
 
 Cr. 
 
 I*'*' 
 
 ISSC 
 A'o*' 
 
 Dtc 
 
 Oil haiiil 
 
 Jlioioi'il, wcei^d waijm. 
 
 On hand 
 
 
 
 ISS6 
 
 
 10 
 
 
 N>,e 
 
 4 
 
 6 
 
 
 \ " 
 
 8 
 
 5 
 
 
 H 
 
 10 
 
 6 
 
 1 
 
 <( 
 
 17 
 
 6 
 
 
 i « 
 
 33 
 
 
 
 (< 
 
 SO 
 
 
 
 « 
 
 (( 
 
 
 
 
 
 SO 
 
 50 
 
 13 
 
 Paid for a hat 
 
 " a coeU . . 
 to C. Cameron 
 far hooUi .... 
 
 " fitel 
 
 " veet 
 
 Balance on hand , . 
 
 4 
 1 
 
 2 
 13 
 
 IF) 
 
 60 
 
 50 
 50 
 50 
 
 EXERCISE IV. 
 
 July 5, 1886. — Commenced business with cash on hand, $50. Bought 
 of A. Mann for cash 100 yards Cotton at 7c., 20 yards Tweed at $1.20. 
 10. Sold for cash to L. Mason 25 yds. Cotton at 8c. Paid for Coal Oil 
 fl, and for Stationery COc. 12. Sold H. Corbett for cash 12 J yds 
 
 F"»Sft^:\t3i«'.«ffiB*-^'.>;, 
 
 ■Cv''..-^*KJi«i:»C5*^ 
 
 irS^AJti 
 
nOOK-KKKPIMi. S 
 
 Tweofl nt $1.30. in. Sold nut the i-oniainder of my goods for cish $18. 
 bind the amount of c-ish on liarul. 
 
 EXERCISE V. 
 
 Au^'!^r8,'^(;._Common((Ml huMncss with cash on h.-ind .<^1 100 
 bought of J. J5:ur.! for ••.i.sli, -Ji) \,\,\s. ,,f |'|,,ur at .-^.".no, an.l "00 I'.u^h' 
 \V heat at 90r. .3. I'ai.l f„,.|, !?10. .",. Sold J,..s. K„ss f,.,- cash, )0 
 l.bls._I.lour at ><C..r,0. (5. Sold AV. f;a,Tosv f„r rash, oO hush. Wh.-at, 
 
 "*" ,'%,..'• -f""' ^'"' I*"•■^t••'«'^ •'^'•-O- •••■ Ko<oived from J. Clark, L'O 
 conls of \Vo.k1 at ^l.r>0, for which T j.aid cash. 
 
 How much is oil hand on tho lOth of Au-? What does thfl Dr. sidn 
 of th.i .-ash account snow ? What the C-? Whi.h si.h, must lie the L'rcatcr 
 when there is a diffennco helween th(i .sides? Kxplain. 
 
 A Personal Account must Im- opened, (if nut opened already) when we 
 receive value troni a person without ,-ivin- e^iual valu.^ at thp time ; nn.l 
 'h^IJ" '"'''" '"'' '""i"-p^'JB.'S ^^i^''""^ r..ceiving e.iuai value at th^ 
 
 AJl cash transa-^tions musi upj^io ui tho Cash Account in some fuiin. 
 
 the Cr side". II r' '"^} '"T'l"' ^^•'''"^'. ^'''' *'^^«" '"^" ^^^ ''""!"«''« ^'H^ 
 the Cr. side all amounts whi.h are p.-.id out, the Dr. side must l>e the 
 
 greater when there is a difference between the sides. 
 
 The pui.il w:iIol,serve that the same i ransartiun mav airecL l.oth tlie Casii 
 Account and a Pers<,nal Account. For ex..n<j,le, if .).-J{„,,s pays on accmnt 
 casli ^.50, his account must be creAit.d with the amount, l)ecause he cives 
 N^ilue without rec-eiving, at the time, valu., in return; an.l tho Cash 
 Account must be debited for the s^une, because oash has been received. 
 
 Ill the next two exercises the pupil will open ;-, Cash Account. an<l also _ 
 such Personal Accounts as are reijuired. ^^ — j.**!*' i^^t 
 
 
 I ': 
 
 %s 
 
 EXERCISE VIT 
 
 Oct. 1, 188G.— AlJomraenced business with cash on hand f 2,000 J Tavlor- 
 owes me on account $350. 4. Bought of A. Gunn o,i accou.it 250 v<k 
 IweedatjOc.; 30 yds. Broadcloth at .$2.30; 50 yds. Farmer's Satin aO 
 4oc. ; liu yds. Flamiel at 30c. 5. Sold J. McKay *10 yds. Twetnl at DOc • 
 
 f, -^1 JH?'"'. ""K ^*^^- ^"^'^ *'"■ <^'"''l <-''* ^■•^'•"'»*' ^'f ^^ tore with cash,' 
 !"■ I *.on iT'^r. ^""' •^- "^'^^^'''' *•" 'it^^^unt cash .§100. Pai<l cash for 
 tuel, ?520. 12. Paid A. Cunn on account cash .^140. Paid cash for 
 Matioiiery and l>oK(.ge, 6l.:iO. l:;. y„ij jj. ji^„„^ ^,^ ^^^^^^^ r,^ j^ 
 
 ^Z ^ ^r- ' ;!^. /''"• ^'"'''""''•'^ ^"'i'^ "t' ^Oc. 15. Paid cler;:'s s^ihuy 
 with cash $20. I'aid A. Gunn cash in full of account, .$— . 
 
 Find the amount of cash on hand, and show how the Pei«onal Acco-'itif/' 
 nand on the evening of Oct. 15th 
 
 \ 
 
 Buya 
 
 / 
 
 ••i 
 
 
6 
 
 bOUK KKKIM.\(i. 
 
 EXERCISE VII. 
 
 Oct. 18, 18<^r).— TnvostfHl in husin.'ss casj^.«800. iJoufjlit of "Wm. Sym- 
 ington for ciish gixnls valu«;«l at #1U0. liT Sold A. l{<>l)in.-on on account 
 12^ >•<!.«■. Silk at 9(k-.; '20 y.ls. Factory Cntt..n at 11.-.; \l y«I.s. Tweed 
 at?1.20. 20. I? .ii-lit of A. Jfilk.-r on aicount .'WO yds. Linen at r>{h: 
 21. Paid for St.iiioi,ery,!?L'..->0. 22. Sold JNl. Mii.io on a.-.-ount If)} vds. 
 Linen at COc; 20 yds MuslTTTat 2.H-. 2.1. Paid for OHiic. Kuiajt.ure, eiQ. 
 2.'). Keceived from A. IJobinson on Jiccount cash $5. P.iid A. Jlilker on 
 account cash ^i)0. 
 
 The pupil's work should show the following result: Cash on hnn<I, 
 f).'i2..')0; A. Robinson owe* on a< count, #2r).2r>; M. J.Iilne owes ^14.75: 
 amount owing to A. Hilker, $90. 
 
 MERCHANDISE ACCOUNT. 
 
 A Merchandise Account i.s kept for the i.ur[)ose of showing tho cugt 
 and the proceeds of all goixls liandled in connection with the business. 
 
 When gfKxIs come in an entry is made on tho Dr. side, and when goo<ls 
 are dispos>>do/im entry is made on the Cr. side o€ the ^lerchandise Account. 
 At c(juunencing, the value of goods on hand i.'-. entered on the Dr. si<le. 
 
 Merchandise is the terra cotnmordy employed to denote goods of any 
 kind which are bought to sell again. r,oo<\s bought for use, such as fuel, 
 coa> Jil, stationery, •fee, are not included. 
 
 EXAliPLB. 
 Aug. 2, 1886.— Commenced business with gowls on hand valued at $300. 
 fiold James Holman on account 20 yds. Linen at 40c. 4. Bought of 
 N. Cowman on account 250 y<ls. Cotton at lOc. Sold H. Holmes for cash 
 1 12 yds. Tweed at 7r)c.* n. Sold C. JMcf^iren for cash 120 y.ls. Cotton 
 at 1 2c. G. JSought of L. Mason for cash 224 yds. Calico at 1 Ic. 7. S(.ld 
 J. Baker my entire stock of goods for cash §2.")0. Find the loss or gain. 
 
 Dr. (Cost.) MERCHANDISE. (Proceeds.) Cr. 
 
 Aug. 
 
 -7 
 
 4 
 
 Oiilniid 
 
 300 
 
 1 
 
 0} 
 
 7 it 
 
 ISSlt. 
 
 \ 
 
 Awj. 
 
 it 
 ** 
 
 n 
 
 i 
 
 1 
 
 1 
 
 i 1 
 
 !• 
 
 lioiiijlit ufN. Bowniaii 
 on (icrimnt . . . 
 
 H 
 
 Bouijht fur Ci.ih of L. 
 M(i.tuit 
 
 
 Gatit 
 
 
 
 1 
 
 i"j 
 
 Hold Jiiti. Holman on 
 
 iiccoiiiU 
 
 So/i) for cndi to II. 
 
 Ilidiiirf 
 
 Solil. for Cddi to C 
 
 Mvl.nren 
 
 Solil for ctmh to J. 
 
 Uitkirr 
 
 U 
 
 S.'.0 
 
 s.:6 
 
 40 
 
 4» 
 
 ii.r J'"..''."'''' "''." '?'"» 'jo'.'* the exer(,:..s prtviously -ivet. will see at once 
 rewi' t r •'^' • "' " '• ""' ne«e»sao tg ojicii any other than the Merc 
 
 (hat this cransaction affects 
 Herchaodiae Aocouot to find the 
 
 ;:^sini^>::&li!af^~^:;^«uj&;^i^?^^ 
 
 5^ 
 
 1 
 
BOOK-KF.EI'IXO. ^ 
 
 EXERCISE VIII. 
 
 on account 2 prn. SI n, .; „ ' no '! ' 'T-!'* "•'"'• •^"'•' ^^- ''""» 
 H. King on am.unt lUl^ m .;;' 'o i/'sh- l r.,"' ^■' ^- ^'""«''* "^ 
 my entire «t«ck of goous fir ^^ S79«.50. '"' ' '""' "' ^•'•"^- '^"'^ 
 
 Find the loss or gain. 
 
 EXERCISE IX. 
 
 Ht r,c. 3. Paid tor Fuel cash f^->^, s if • i '; '-'^ -' '\"""l>< ilirea.l 
 account cas}i .«10 Pal Si. ^-'- /;. '^-•"'^•;<l ^'-m A. M.-Cuhroy on 
 
 " •-'"• ^>nii cash tor St.i lonciv .^-'.^lO^f, s;,.i,i w Vr • 
 OH account 30 y.ls. Ur.^.IcotH at .Si'..-,0. ^A "]{ .".ht , J U"'' . ^"'' 
 
 accouMt lOOy.Is. Scotch Twe.nl at $ ..iu 9 1 ^ J i ? I f . w' m''" "" 
 accounc cash e.}0.r,0./ 10. IWeiveJ f ■„„, A Af . -• ^^'""■"" 
 
 account, $_. 12 p/id Tf %tl?U 1 ^'^ ""'"•«T ^^''-Ji m full of 
 
 ^1 • ■'^""* ^•' '^"•l;« on account cash .^100 K,.],! ir i 
 
 C... on account ] 20 y.ls. Flannel at 30c. J5..u.r of if s.. '"'' * 
 
 an invoice of .cj.hhIs a.nounf ii..r to ft-'-JO fliv ^ . • ^*- ^^''"'« ','.'' "^•^''unt 
 ii'xxh as shown hy tho i,n Wo ,, li ' / V f "■" "f '''""^^■' '^« ""''»» 
 
 SoM A. McCoul,,Vir c. rV ,. F, I /''p ""T^^ 'l'"" ♦'"'-"<•'■•] 
 15. Sold all the gA i^ ^[^t L \1C S t ^^ 8^^ ^'^^ '"'^"' "^ ^'^^ 
 
 -■ tl,e time of cl,i , i" ''"' "•"">' "''""" '" """" ■'' ■-■"^< ."""W 
 
 BILLS RECEIVABLE ACCOUNT 
 
 if.Kxls. pioiui.se to pay i« regarded a.s actual j'a'jmct fur tlie 
 
 Suppose that E. Brown buys from the pu,,il ^,.hk1s valued at.*]n ard 
 hat he gives the pupil in payment the followia<: ^ ' " ' ' ^^'^ 
 
 i\ 1 „ Clinton, Oct. 8, 1S86 
 
 une month after date I prouiise to p <P"pU'. ...„,= i„.mcd v„.) ,;. 
 
 iMlars, for value received. — — leu 
 
 i 
 
 E. BROWN. 
 
 
BOOK-KCEPINO. 
 
 
 A* TJrown has given the pupil tluH I^roml»*orif Xofe which ropr«»M*n*« 
 veUu« rtcnvab/e on« month heiuris he shoulil not charge the niiiount of the 
 goods to Brown's iiceoutit. The pupil will optm a Bills Baceiyable 
 Account into which he will ent«r this and all other toritten obligaluina 
 which he holiif uifaiuxt otheis 
 
 Wlien a n< te uignetl hy another comes into a dealer'a po»se«»ion he should 
 place the amount of it on the Dr. ttiile of the Bills Receivahle Account, and 
 when he parts tvilh it he shouUl enter the amount of it on the Cr. side. 
 
 Notes on hand at commencing are enteretl on the Dr. side. 
 
 EXAMPLB. 
 
 Aug. 2, 1886.— Sold II. McDou|,'!dl \'2 l)l)ls. Flour at ?«."); .30 hush. Oats 
 at 2Sc. lleceived in payment his note at .!0 days tor .f<)H. }0. .'). l{e«'ivi>«l 
 from A. ]$urwash on account his note at ll) days for ^(iO. 6. Sold W. 
 Cole, on his note at ,'J months, goods \alue<l $25. 7. Jk»ught gf»o«l.s 
 from iJ. Piitterson amounting to $(»0. Gave in payment A. Burwash's 
 note for $60. 
 
 Find the value of other's notes on hand. 
 
 Dr. 
 
 /Othtrt' Nntu\ 
 V KicelTcd. ; 
 
 BUjIiS RBCEIVABriE. 
 
 VCurtod 
 
 od With./ 
 
 Cr. 
 
 1886 
 
 
 Aug 
 
 O 
 ^ 
 
 t< 
 
 5 
 
 14 
 
 c, 
 
 Received for Flour and 
 Oats from H. Mc- 
 Doiitjall 
 
 lieceirtd on account 
 from A . Jiiirwanh . 
 
 lifceived for ijoods' 
 from, W. Cole . '. 
 
 
 
 1886 
 
 
 
 
 Aug 
 
 7 
 
 68 
 
 40 
 
 
 
 60 
 
 
 
 
 25 
 
 
 
 
 /.;.? 
 
 ^'i 
 
 
 1 
 
 Gave fur goods A. 
 Burwash's Note. . . ■ 
 
 Other^ Notes on hand. 
 
 60 
 
 l.^iS 
 
 40 
 4" 
 
 EXERCISE X. 
 Aug. 9, 1886.— I have on hand L Ma.son's note for .S240. 10. Sold II. 
 Clark on his note go<Mis worth .^."jO. 1 1. lleceivcd cash for L. Mason's 
 note, .■?'J40. lleceived on account jroin I). Monroe his note for $100. 
 14. Received cash for H. Clai -'s note tor .*!50. 16. >So]d A. Pace on his 
 nocL, g>^ods valued at $45. 8old M. Ilose o;i his note 12 yds. Broadcloth 
 at 'fffOf %p^—. 
 
 Find the amount of the notes iti liand. 
 
 EXERCISE XI, 
 
 Aug. 23, 188C. — Commenced business investing as follows: H. Minto's 
 note for $300 ; C. Bolton's note for $500. 24. Bought gfKxls invoice*^, at 
 
 ■^ ikx.'^^S^Si^mi 
 
 ^mu^^^fm9^^ * 
 
40 
 4» 
 
 KOOK-KunVQ. g 
 
 m. 30. Recoiv:.! a sh ft,r R M J." '" ""/*' ^'.^^ •"••"'*• ^'"^'^ ^^-^rth 
 J.i« note gcKxls vaked at $.17' ^'" ' ''°*"' ^*^^' ^"^"^ ^ ^ulUer ou 
 
 Fiml the value of othem' uotes ou hand 
 
 ^^T-5 PAYABLE ACCOUNT. 
 
 will open a BiUs Payable Acl^lVT ' • ^"'" '*^ ^^'"« ''''' ""^•'- "" 
 allnotLwhl.ht.^^ran.tTUr^ ^'^ — ts of 
 
 entered „„ the l)r silo Vofli A P ''" '"''''■''""' '* *''« """""'* ^^ 
 'r. suio. .N ote^ outxtnnduuj are entered on the Cr. side. 
 
 EXAMPLE. 
 
 10 ,l.v: f..;.sM.,, "p. . ; r;*: ■" I'^r"^ "^ ^''-' -""« n>y note at 
 
 C. Bought on n.v not; ^ ^/^h . f if CM ^ ■'"" "^ ^ ''•, ^'7'"' ^•■^"•^• 
 9. I?uu"ht of \ ■ Ar^.T) ..,7 I ' • '^l^''-^'*^^'* g'xxls va ue< at |!240 
 
 .i>ou„,tot A McDonald on u.y not,- .t three -onths ..uck'- valued at 
 ciUO. 13. Paul cash for my note favor \L Uuhn; , $120. 
 Find the value of my notes outstondin-'. 
 
 i.^mil) BILLS PAYABLE. /mv»o.«x 
 
 Cr. 
 
 Redefmeil with canh 1,1 i/ 
 
 'otf favor A.B.Dean. 
 
 Jtedtimed u-ith eaith my 
 
 note favor H. Holman 
 
 ^olet OuUtamlinij 
 
 OuMa/ulinij 
 
 O'are for ijomls to U. 
 
 Ilolman 
 
 Gave for <j,„h1» to H. 
 
 C. Memirji 
 
 Gavfi for ijomls to A. • , 
 
 McDvtMld 2iiit 
 
 Sun 
 
 J*0 
 
 241) 
 
 700 \ 
 
 EXERCISE XII. 
 
:u 
 
 BOCK-KEEPING. 
 
 ,".i''- 
 
 # 
 
 «»1 
 
 
 for my note favor of G. McKay, $100. 18. Gave my note f^r $"> to _H. 
 Hilker for goods. 19. Paid casli for my note favor of G. Smilli, $^)0. 
 20. Bought of M. Manley 120 yds. Tweed at $1.20. Gave in payment 
 my note. 
 
 Find the amoimt of my notes outstanding. 
 
 For the next exercise the pupil will open a Bills Beceivable Account 
 and a Bills Payable Account. 
 
 EXERCISE Xm. 
 
 Dec. 1, 1886. — Commenced business with notes on hand amounting to 
 .$550. 2. Bought gomls on my note for $320. Sold Peter Bruce, on liis 
 note, 24 yds. Tweed at 75c. 4. Bought of W. McMaster, on my note, 100 
 yds. Flannel at 35c. Received cash from Peter Bruce in payment of his 
 note, $18. G. Sold Colin CaniphcU, on his note, 1 .'^uit of clothes, $20. 
 
 7. Bought of A. Hilker, on my note, 200 yds. Cotton at lie, $ — . 
 
 (a) Find tho value of others' notes on hand. 
 (6) Find the value of my notes outstanding. 
 
 For the next exercise the pupil is rc-iuired to open all the necessary 
 accounts ; that is, all the accounts affected by the transactions given. 
 
 EXEECISE XIV. 
 
 May 3, 1886.— Invested in business as follows: Cash, $400; gpoils in 
 
 stoie valued at $200 ; James Keynar's note for $40. 4. Bought .of J*. 
 
 Mason, on my note, 200 bush. Wheat *t 90*. 5. iv^M ^eynar paid cash 
 
 for his note, $40. 7iSold Wm. Rose, lor cash,'5!0n[Wsh. Oats^t 30c. 
 
 8. Sold ^y. Goi\lai\, oh account, 30 bu^h. Wheat at $1. 10. Paid fliy note 
 favor L. JNIasoii •A'rth cash, $180. W, Gordon paid cash in full oi t^comit. 
 $ — . Sold out my entire stock of goods for $340, cash. 
 
 (o) Find the amount ox cash on hand. ' 
 
 (6) Find the loss or gain. 
 
 (c) TNliat was I worth at commencing? 
 
 {(I) Wliat was I worth at closing ? 
 
 EXPENSE ACCOUNT, 
 
 AVTie Li a merchant buys articles, such as coal, wood, ire, which are not for 
 •iile, but /or us,', he should- open an Expense Account to receivo the 
 amounts of them. In this account ho m;iy enter also amounts paid for 
 rent, insurance, clerks' salaries, «fcc. 
 
 All punti? r<^prep-enting tho co.Ht of carrying on the business are entered 
 on the Dr. side of tho Expense Account. 
 
 Wlien articles charged to the ExpeMxe Account are sold (which happens 
 but seldom), the pi-oceeda arc ])l.i<'ed on the (\: side of it 
 
 
BOOK-KEEPINQ. 
 
 11 
 
 EXAMPLE. 
 
 June 1, 1886.~Paid cash for Cml, $10. 2. Bought from H. IHcLare.i 
 on account, 5 gals C«U Oil at 30c 5. Paid ca^sh for Stationed ^ 
 7. Paid cash for Insurance, $6. 9. Paid cash for Rent, ^10^ " 
 Uought ot C. Dickson, on account, a Set of Books for store, $5.40. ■ 
 
 Find the total loss on expenses. 
 
 10. 
 
 Dr. 
 
 (Cost.) 
 
 EXPENSE. 
 
 /.wc 
 
 
 J 1(11. 
 
 1 
 
 •* 
 
 2 
 
 n 
 
 5 
 
 t( 
 
 7 
 
 tl 
 
 9 
 
 it 
 
 10 
 
 (Proceeds.) 
 
 Cr. 
 
 Coal 
 
 Sijals. Coal OUatMc. 
 
 'Stationery 
 
 Insurance 
 
 J}fint \" 
 
 Books for store 
 
 
 
 1880 
 
 
 
 
 
 
 10 
 
 
 \jun. 
 
 10 
 
 1 
 
 JOi 
 
 
 
 o 
 
 
 
 
 
 
 
 
 6 
 
 
 
 
 10 
 
 
 
 
 5 
 
 40 
 
 
 
 34 
 
 90 
 
 1 
 
 
 
 LOM 
 
 34 
 
 34 90 
 
 90 
 
 EXERCISE XV. " ^^ 
 
 Oct. 1, 188G.~Paid for Fuel, $10. 2. Bought from Jas Keith on 
 account, a «et of Books for store, $;U0. Paul lor Postege, Jl. 4 R^ 
 or Insurance, $o. 5. Bought of H. Burns, on account, 10 glls. Coaf Si 
 at 30c. for use ot store. G. Paid clerk's salary, $20. 
 (ii) Determine the loss on expenses, 
 (i) \Miat does the Dr. side of tiiis account shew? 
 
 «ni'lJ^'^^'' T "tu't^ v°"Sht Pl'-^ced unfler the heading " Merchandiso/' 
 and when under the heading " Kxpense " ? 
 
 THE PROPEIETOR'S ACCOUNT. 
 
 Wlien a dealer invests ca.sh, goo.ls, notos, or any other valuable considera- 
 
 ' leadin. inf ''' n ""''^ '*^'" "'' "^■'-•"""*' ^''-^^^"8 ^'^ '"'^ ^"'« ^^ i^« 
 ;X n/\-r - fn*^/. t amoj mtgi^^vgfe,^ a.ul sahsm^nt gah,s on the Cr. 
 
 ,7™7r^ir^^--^^4^^^#^^^^^^^ businesTiricommencing with- 
 i/utwals andJo^^^£^_sh oul,l bT ph^^gjonThe Dr. side. -^ 
 
 EXAMPLE. 
 
 Aug. 2, 1886.— Commenced business investing as follows! Cash,®! 000- 
 
 ...count $00 IJ AVith.hew from tlio bu.sinesa ca.sh $40. 31. Net toiu 
 tor the month of August, *«'^ ^ 
 
 Shew the condition of the Proprietor's Account on Sept 1st. 
 
 I I: 
 
12 
 
 BOOK-KEEPINQ. 
 
 Dr. 
 
 s' 
 
 /DebU Aunmcd. Witb-\ 
 \ dnwkli and Loues. / 
 
 ('Pupil's Name Here.) 
 
 /Investment \ 
 V and Gains. / 
 
 Cr. 
 
 1886 
 
 
 Aug 
 
 
 ** 
 
 12 
 
 (( 
 
 SI 
 
 //. Henry' It a/c . 
 Cash withdrawn 
 Preitent worth . 
 
 
 
 'ISSC 
 
 
 00 
 
 
 Am, 
 
 <9 
 
 40 
 
 
 (( 
 
 2 
 
 WO 
 
 
 
 2 
 SI 
 
 1510 
 
 
 
 2 Cash inve.ited 
 
 Goods " 
 
 L. Mason's note . . . . 
 Gains for the month . 
 
 1000 
 
 400 
 
 SO 
 
 60 
 
 1510 i 
 
 EXERCISE XVI.-REVIEW. 
 
 ' March 1, 1886. — Commenced business with cash on hand $800. 2. 
 Bought for cash of S. Hunter goods worth $100. 3. Paid for Stationery 
 with cash, $5. 4. Sold gootls valued at $25 to A. Mclntyre t ccount. 
 5. Bought of J. Davis, on account, 200 bush. Wheat at $1. . Bought 
 of L. Mason, on my note, 35 bbls. Flour at $6. Sold H. Huston, for cash, 
 10 bbls. Flour at $6.50. 8. Sold A. McKay, on his note, goods valued at 
 $20. Paid cash for Fuel, $15. 9. Received A. Mclntyies note in full of 
 account, $ — ■. Gave my note to John Davis in full settlement of account, 
 $ — -. 10. Sold out my stock of goods for cash $440. 
 
 Result. -^Cash on hand, $1,185 ; others' notes on hand, $45 ; my notes 
 outstanding, $410; Expense Account shows a loss of $20; gain on Mer- 
 chandise, $40 ; net gain, $20. Present worth, $820. 
 
 By the preceding part of the chapter the pupil will see that it is possible 
 to record the transactions of a simple business, such as that of a farmer, 
 mechanic or grocer in one " Boi)k of Accounts." 
 
 The name of the account will be written in a large, plain hand at the 
 top of the page of the Account IJcMjk. When an account is likely to be 
 large several successive pages should be kept blank for it. 
 
 Ti, recording the transactions care must be taken to give full particulars. 
 Dates, prices, am<^>unts, names of parties conc«>rned, itc, should be stated 
 distinctly. To allow sutlicient space for this the Dv and Cr. money 
 columns may be placed side by side and to the right. See page ^ 1. 
 
 In order that debits and credits may be readily distinguished the follow- 
 ing should bo attended to : 
 
 When entering a debit, place at the extreme left of the space for 
 explanations, the word "To," and after it a full description of the transac- 
 tion. Th« amount will l)e put in the left-hand money column. 
 
 AVlien enteruig a credit, place the word "By" some distance from t lie 
 left-hand side of the space for explanations, .uid after it a full description, 
 
 *The term " Stock" U ooBunanly used ao the titlti of this acuouut We do act employ it at thU stage 
 for fear of coufusioD 
 
 .# 
 
BOOK-KEEPING. 
 
 IS 
 
 
 The .amount will be extended to the right-hand 
 
 as in the case of a debit, 
 money column. 
 
 The directions that have been already given will be found sufficient for 
 the remaining exercises of this chapter. 
 
 The pupil who has performed thoughtfully the work of the previous 
 exercises will have observed : l^^v^u 
 
 (1) TJiat every transaction affects at least ttm accounts. 
 
 (2) That the debits and credits of ewh transaction are of ciual amount 
 
 (3) That some accounts shew losses or gai,ts, while othtrs sl^w values in 
 favor oj tm dealer or ayamst him. 
 
 Jan. 
 
 EXERCISE XVII. 
 
 3 1887 -Commenced business with cash in hand, $500; goods n, 
 store, §400. ° 
 
 " 4. Bought goofls of D. Gunn on account, $240. 
 '' ^- '"^old goods to IJ. E. Monroe on liis note, !?45.50. 
 
 7. Paid D. Gunn on account cash ii^ I '^0 d 
 " '^' '''''^'J^^^;^ff^^''g"^'*''^^"rtb$200. Received in part payment his 
 
 '' 11. Received cash in payment of B. E. JNIonroe's note, W^M ~^ 
 
 u \i x^^^f ""^ "^^ ""*** *'* balance his account, $— . 
 
 1 4. Paid cash for Stationery and Postage, So ^ 
 " 15. Bought goo,ls of a. (Junn on my nC '. .?70. .Paid cajji for adver- 
 tising, $1.20. V_^ 
 
 " 17. Sold Thomas Smith, on account, goods valued at 818.00 P.iid 
 
 cash for Fuel, $10. ^ 
 
 " 18. Received from H. Cal<! on account cash $30. — 
 19. Redeemed my note fciv,.r of I). Gunn with casu ^ 
 for Repairs, $4. 
 "21. Sold Thomas Smith, on account, goods 870 
 " 22. Lent D. Gunn a $10 bill. ' 
 
 '; 24. Receive<l from Thoims Smith his note for $80 on account. 
 
 -;). u. Liunn returned the money he borrowed, $— 
 ■; 26. Bought a Stove for store. Ga^■e in piymeiTTmy note for .«] 5. 
 2>. Keceived cash in full payment of I£. Calder's note, !< . Piu.. 
 clerk's salary, .$2^. 
 
 u on" l^^.'^f i^'^^1 fi^m H. Colder, on account, cash $40. 
 
 J9. Paid cash for Telegram, 25c. 
 
 "31. Sold out mv stock of goo<ls at auction for cash $456.35. 
 
 Paid c;ish 
 
 the auctioneer $6. 
 
 Paid 
 
 J:^^^!^^:^^:^^^^ ^" '^ ^^" ^-^ """^^^''-^ ^"^^ -"-« - --"•^•^ 
 
 ;/ 
 
 ^% 
 
i ^ 
 
 
 1* 
 
 
 UOOK-KKKPINri. 
 (rupire Name Here.) 
 
 
 Dr. 
 
 Cr. 
 
 /.s',5 
 Jim 
 
 7 
 
 s 
 
 4 
 SI 
 
 />'// Caxh. Amt. investfd 
 
 014 
 
 
 500 
 
 400 
 
 14 
 
 
 '• 
 
 " Aldie, " 
 
 
 *( 
 
 " J^et gain 
 
 
 
 J^et Worth 
 
 
 
 
 
 
 
 i>i4 
 
 
 014 
 
 CASH. 
 
 Dr. 
 
 Cr. 
 
 Jan. 
 
 3 
 
 7 
 
 11 
 14 
 15 
 17 
 
 IS 
 19 
 
 41 
 
 25 
 
 iV 
 t< 
 
 2S 
 
 no 
 
 SI 
 
 ro JP»Pll-» Name Hc„.,^^^^^ /< m(!. on hand 
 
 By D. Guiin. Pd. him on ale 
 
 " Balance 
 
 500 
 
 ! 
 
 II 
 I 
 
 120 
 SSO 
 
 
 
 To Bnlanrp. hrot. down 
 
 
 
 500 
 
 
 500 
 
 
 
 SSO 
 
 .',0 
 
 5 
 
 1 
 
 10 
 
 4"0 
 
 
 > ( 
 
 " B. JOr. J'fc'd fur Monroe' a note 
 
 Bij expmi.tts for Pontaiff, etc 
 
 
 t ( 
 
 " " AdrertUimi 
 
 so 
 
 ( t 
 
 Fuel 
 
 
 " Balance 
 
 
 
 To Balance brot. down 
 
 SO 
 
 
 4 '5 
 
 4t'!> 
 
 ,111 
 
 1 
 
 50 
 SO 
 
 4. '5 
 
 50 
 
 
 l.'i) 
 4 
 
 10 
 S05 
 
 
 
 1 ( 
 
 " H. Calder. liec'd on a/c ."..■";' 
 
 
 (( 
 
 By B. Pay. Note faror IJ. Gunn 
 
 " Expennen for Repairs 
 
 
 t i 
 
 " £>. Giinn. Lent him $10 
 
 
 
 " Balance 
 
 
 
 To Balance brot. dmim 
 
 SO 
 
 
 4-i'J 
 
 so 5 
 10 
 
 110 
 
 40 
 456 
 
 021 
 
 SO 
 
 SO 
 
 S5 
 
 4S0 
 
 &5 
 
 c. 
 
 SUO 
 
 so 
 
 '* 
 
 " J). Gunn. Btlurned loan. ... 
 
 
 " 
 
 Bi/ expenxe, iSa/ary 
 
 
 
 To B. liec. H. Caldrr's note ... . 
 
 
 •* 
 
 '• H. Calder on ajn . . . 
 
 
 
 by exi>eni<e. Telegram 
 
 To Mdse. Sold stock of tjoodsfor ca.sh 
 
 By expense, pd. Auctioneer . . . 
 
 25 
 
 
 " Balance 
 
 40 
 
 
 
 
 
 05 
 
 O.'l 
 
 C5 
 

 
 UOOK-KKEJ'IMi. 
 
 MERCHANDISE. 
 
 
 Dr. 
 
 Cr. 
 
 M 
 
 1SS7 
 Jan, 
 
 s 
 
 4 
 5 
 S 
 
 ir, 
 
 17 
 21 
 31 
 
 7'o....":"P.i'> >■•»'?;= "=«•) . A ml. of goodn in 
 " JJ. O'liiin. Hot. yoodt on aic 
 
 utort. 
 
 400 
 240 
 
 70 
 
 so 
 
 790 
 
 4J 
 
 4' 
 
 200 
 
 IS 
 
 in 
 
 4.'tu 
 
 
 (( 
 
 Bi/ B. Rtc. tSold ijoofU for note . . . , . - . 
 
 ■'() 
 
 ft 
 
 " iSuiiiirii'ii. iSold i/ooi/s to Ji. Ci 
 $;.'UU; )iartj)ayl., noli: Si/ . 
 To B. Pny. Bot. goods of J>. ilunii foi 
 By T. Smilli. isold youds on u.c . 
 
 "Cash. Sold my stock of goods . . 
 (Jain 
 
 i/der, 
 
 
 tt 
 
 note 
 
 fJO 
 
 n 
 
 
 
 tt 
 
 
 ,•.') 
 
 
 
 
 
 45 
 
 7'M 
 
 4^ 
 
 BILLS RECEIVABLE. 
 
 1SS7 
 
 
 Jan. 
 
 6 
 
 *t 
 
 8 
 
 (( 
 
 11 
 
 it 
 
 24 
 
 tt 
 
 
 
 -. / 
 
 Dr. 
 
 To Mdac. Sold goods for note . . 
 
 By Cath for D Monroe's note 
 
 To T. .Smith for note on a/c 
 
 By Cash for H. Caldei'n note 
 Uthtr.t' notnn on hand . . 
 
 Cr. 
 
 4'> 
 110 
 
 m 
 
 
 
 80 
 
 \ 
 
 4.-i 
 
 110 
 so 
 
 6C 
 
 23.1 
 
 1 
 
 23.-, 
 
 60 
 
 
 
 - 
 
 — 
 
 •■s 
 
 1S87 
 
 
 Jan. 
 
 IS 
 
 (« 
 
 1.-, 
 
 u 
 
 I'J 
 
 t ( 
 
 20 
 
 BILLS PAYABLE. 
 
 Dr. 
 
 By D. Gunn. Gave note c). ali . 
 " Md»' Bot. goods 'jrnote . 
 
 To Cash, for note favor 1). Gunn 
 
 By Exppnse. Gave note for Stove 
 Our notes ouiMinding . . . . 
 
 Ill actual uuaines* onljr one «ocount usually appears on a paf e. 
 
 Cr. 
 
 1 
 
 120 
 
 
 
 70 
 
 120 
 
 
 IS 
 
 So 
 
 
 
 SOS 
 
 
 203 
 
 
 
 
16 
 
 ,11 ' 
 
 •-■*: ♦: 
 
 BOOK-KUPDra 
 
 D. OUNN. 
 
 Dr. 
 
 1887 
 
 
 Jan. 
 
 4 
 
 <« 
 
 7 
 
 n 
 
 IS 
 
 « 
 
 93 
 
 c< 
 
 as 
 
 ByMdm. AmLgootUbot 
 
 ToCcuh. AnU. paid am/c || 190 
 
 " B. Pay. Gave lutium ale. tt iiO 
 
 ToOaA. LentatWbia .... 
 BuOatk. Jtetmrmilom. 
 
 TBOa, SMITH. 
 
 1887 
 
 
 Jan. 
 
 17 
 
 I< 
 
 SI 
 
 «t 
 
 24 
 
 ToMim. Sold goods mtafc 
 
 BffB.^e. Be&d his note on ale. 
 Ho owes us 
 
 H. OATiBEIR. 
 
 1887 
 
 
 Jan, 
 
 8 
 
 ti 
 
 18 
 
 •« 
 
 ■gS 
 
 ToMdae. 
 
 onafe 
 
 BZPBNSE. 
 
 1887 
 
 
 Jan. 
 
 U 
 
 
 15 
 
 
 17 
 
 
 19 
 
 
 26 
 
 
 £7 
 
 
 29 
 
 
 SI 
 
 To Caehfor Stationery and Postage 
 
 " " ** Advsrtiising 
 
 " " " F'lel 
 
 " '* " Jiepairs 
 
 " B. Pay., for Stove 
 
 " Cash/or CUtKr Salanf 
 
 " " " Telegram..'. 
 
 " •* " Auctioneer 
 
 LoM 
 
 S40 
 
 10 
 
 10 
 
 Dr. 
 
 18 
 
 70 
 
 88 
 
 60 
 
 60 
 
 Dr. 
 
 90 
 
 90 
 
 Or, 
 
 UO 
 
 »40 
 
 10 
 
 10 
 
 Cr. 
 
 80 
 8 
 
 88 
 
 ~c7. 
 
 60 
 
 60 
 
 SO 
 40 
 £0 
 
 90 
 
 Dr. 
 
 Cr. 
 
 6 
 
 1 
 
 10 
 
 4 
 16 
 
 £5 
 
 68 
 
 £0 
 
 9S 
 
 45 
 
 66 
 
 66 \ 4& 
 
BOOK-KKKPING. 
 
 1! 
 
 Jan. 
 
 EXERCISE XVIII.* I 
 3. 1887.— Commonced l)usines.s witli cash in hand $400. 
 5. Bought good.s of A. Patteisoji on acctount, $70. 
 
 " 1' ^"g''*^ ^"^^"^ '^f M. Anderson on my note at one montli, $40, 
 
 " 8. Sold gcxxls to Peter Cameron for casli, $50. l 
 
 " 10. Paid cash for Stationery, $1.60. y 
 
 " 15. Paid A. Patterson, on account, cash $20. ^ 
 
 " 17. Bought goods of A. Patterson, on my note at 10 days, $35. 
 
 " 19. Sold A. Halden goods valued at $G0 on his note. 
 
 " 21. Paid ca.sh for Advertising, $1.50. V 
 
 " 24. Paid for Repairs, cash $5. c 
 
 " 25. Sold goods to Peter Cameron, $60. Received in part payment 
 his note for $4. Deposited in bank cash $300. 
 
 " 27. Paid my note favor of A. Patterson with cash $— . Z 
 
 " 31. Sold my entire stock of goods for cash, $16.10. ^ 
 
 " 28. Received from Peter Cameron, on account, cash $10. •? 
 
 (a) Open the proper accounts as the transactions occur, and make the 
 necessary entries. 
 
 (b) Find the loss or gain on merchandise. 
 
 (c) Find the loss on expen.ses. 
 
 (d) Shew how the Net Gain is found. 
 
 (e) Find the proprietor's Net Wortli J.- 
 (/) How can the proprietor's Net ~ 
 
 use of the Net Gain 1 
 
 EXERCISE XI 
 1887.— Commenced business with caslJ^Pife, $400, and goods 
 
 m store valued at $700. Deposited in bank cash, $250. 
 Sold James Smith, on account, 20 bbls. Flour at $4.50. $— Cash 
 
 sales, $40. 
 
 3. Bought of A. C. Carson, on account, 200 bush. Wheat at 78c., 
 $ — . Sold H. Macpherson, on his note at 5 days, 140 bush' 
 Oats at 30c. Cash sales, $56.40. 
 " 4. Paid cash for Stationery, $1.60. Bought of P. C Tavlor for 
 
 ^f OA ^^'i ^"•'''- ^''^''y ^^ '''^°' •^— ^'■'"^ <^''''*'' fo'" <^''"'^' Oil, 
 .?1.20. Bought of W. Munroe, on my note at 10 days 50 
 
 bush. Wheat at 80c , $— . Cash sales, $27.30. 
 
 " 5. Received from James Smith, cash $25. Paid cash for Fuel, 
 
 $6,50 Sold M. L. Jones, on account, 100 bush. Wheat at 
 
 80c., $ -. Sold D. Gaskin, on his note at 2 months, 30 bbls. 
 
 Flour at $5, $— . Cash sales, $20.70. „ 
 
 7. Gave A. C. Carson my note at 2 months for $100 in part pay- 
 
 ment of accou nt. Received from James Smith, on account, 
 
 •v^uuiiM. ine wcounM will b« closed ia the same manner oa the preceding. 
 
 Feb. 1. 
 " 2. 
 
 led without making 
 
 I , 
 
HOOK KKKI'lNci. 
 
 r 
 
 Casli 
 
 Fell. 
 
 8. 
 9. 
 
 cash $10. Piii.l for icpairiiig store willi casli, $r).6(). 
 Kalesi, iy30. 
 
 Paul A. 0. Carson casl» in full of account, S— . Koct'.ed from 
 M. L. Jorifs, on j.ceouiit, cash -S^io. Cash sales, #!-J4 90 
 
 Ilecpived casii for H. Macphersoii's note, §.'2. Paid for Adver- 
 tisiny, cash .$0.20. Cash sales, .$22. 
 " 10. ^"['|^,^;j^^t^'«^'-«"'a'nder of «,y g-Kxla to M. K Jones, on account, 
 
 I 
 
 ('() Find tlie Ios.s or gain on nierchandi.se. 
 
 ! If^ S"/'w ^l'"' "1 <'XF"«e.s ; also tlie Net Iy>ss or Net Gain. What 
 18 the Net Worth at closing? 
 
 (c) What is the amount of ca,sh on hand ? Of others' notes on hand ? 
 Of our notes outstanding] 
 
 («) How much doe3 James Smith owe u.s on account? M L Jones 
 owes us how uiuch? ' 
 
 chaptf;?. II. 
 
 li- 
 
 Book-keeping is the recording of business tran.^actions in sucli a manner 
 as to show the true condition of a dealer's finances. 
 
 There are two methods of keeping accounts, callerl Double Entry and 
 Single Entry. The main distinction betweeii them is this:— In a Single 
 ^ntry I>?.lger onhj Personal Accounts are kept, while in a Double Enrry 
 ledger accounts arc kept with persons and thing's 
 
 rnl^l t.^^^:^^^^^^^^^^::-f^J^-^^^ Entr. Ledger, while two are 
 
 The Fundamental Principle of Double Entry Book-keeping is that the 
 debits and credits of every transaction are of equal amount. 
 
 By the method exemplified in the prece<ling chapter tran.sactions are 
 entered directly into the book of accounts, called the Ledger. 
 
 THE LEDGER. 
 In the Ledger all the debits and credits arising out of the transactions 
 headin r'"^ '^ '"'^ collected and properly arranged under their respective 
 
 When transactions are of a sinjple character the Ledger may furnish 
 .a sufficiently full record ; but when a somewhat lengthy description is 
 necessary this book is no longer suitable as one of original entry. 
 
 k -i ;./ Li t r. if 
 
IIOOK-KKKHING. 
 
 19 
 
 THE DAY BOOK 
 
 The Day Book contains u plain and conij)n'li»"nsive statement, of eaeh 
 transaction connected with the business, put in us sliort a fonu as possible. 
 When a tninsiiction takes place it is immediately recordetl in this book, 
 the folluwing being clearly shewn : 
 
 ; (1) The date of the transaction. ') 
 
 (2) The name of the jK'rson or oooount. ( 
 
 (3) The thing received or k'iven. 7 
 
 (4) The prices, quantities, ftc, of the articles bought or sold. 
 (6) The terms of payment. 
 
 THE JOURNALi. 
 
 The Journal contains the Debits and Credits arising from each tran.s- 
 action recorded in the Day Book, arranged in such a manner that they 
 may be e.if-!y transferred to the Ledger. 
 
 XcTt— The Journal becomes necessary only when the entries in the Day Book are somewhat ooni- 
 plicated, and are, therefore, not ccuveniently carried tharefrom to the Ledger. 
 
 DAY BOOK. 
 
 Toronto, September 1, 1S86. 
 
 Sold Jnmcs Ross, — 
 
 SOO Bbls. Flour at $6 $1,20() 
 
 150 " Apjjlea at $t i,-,o 
 
 Received in paym.-nt cash $1,000 
 
 Balttnce on account SSO 
 
 date 
 
 i,.;',;o 
 
 
 JOURNAL. 
 Toronto, September 1, ISSG. 
 
 Cash, Dr 
 
 Jas. Rosa " 
 
 To Merchandise 
 date 
 
 Dr. 
 
 
 1,000 
 
 6 
 
 2 
 
 S.'jO 
 
 o 
 
 
 Ex 
 
 
 tt 
 
 
 S 
 
 i 
 
 W 
 
 
 
 <J 
 
 
 
 ^ 
 
 1 
 
 Cr. 
 
 1,S.-jO 
 
 i 
 
 I 
 
#• 
 
 so 
 
 Dr. 
 
 18SG 
 Sfpt. 
 
 BOOK-KEBPINO. 
 
 LEDGER.* 
 Cash. 
 
 Cr. 
 
 Tbifdw 
 
 I 
 
 t,000 
 
 I 
 
 Merchandise. 
 
 1886 
 StfL 
 
 By Sundries , 
 
 t,2S0 
 
 Janies Ross. 
 
 1886 
 \kpt. 
 
 ToMdte 
 
 S50 
 
 RULES FOR DETERMINING DEBITS AND CREDITS.t 
 
 aTOCZ, OK THE PROPRIETOR'S ACCOUNT. 
 
 Debit for the amount of the pro- 
 prietor'a lia/dlifu'n assunud by tlie 
 concern at tho time of commencing, 
 for all sums withdraicn, and for the 
 .AV< Lous (if any) at the time of 
 closing. 
 
 Credit for the amount of the in- 
 vestiticnt at commencing, for all sums 
 subaeqn&nlly invested, and for tho 
 Net Gain (if any) at the time of 
 closing. 
 
 
UOOK-KECdNG. Q\ 
 
 Th« Urm "Stock " to coroioonly MMti aa the he.vlinu of the ttooount kem wUh tha (k&tor Mb i»m. 
 or either of the term. " t»plt*l "or " Propnetor." woi3 be qnltoroltSC ^^" ' 
 
 M^Mv?te7«liunr".n',^«'.TT7''*'^'"'*^''r''5«^' privnt* t,«e. H to lm,nd convenient to open . 
 JTlvato Aii-ount, Into ttliiLti t^ciiteriuch. TJiuaccouiilliolo««cUntO the Stock Acc.iim, 
 
 In » PurtnerHhlp biiilnpsa an acrmint ahouM be Opened with toek sorOMr. •nd H iho-jUl ha tM.>.rf 
 in » nuuiner timiiar to tho Stock AooounU ^^^ ^^ j»»">wr, •»» n enoaia d* weaff rt 
 
 Debit for the v.ilue of the goofla 
 oil hand at tho time of commencina; 
 for the cost of grnxla anhseqjienthf 
 jmrchased, and for the value of goods 
 i'Uumed bif cuKfomi'TS. 
 
 MERCHANDISE ACCOUNT. 
 
 CVedit for the proceeds of »fjfn 
 for the value of gowls ruhtrifd Ini 
 V3, and for the value of gooda on 
 /umd at the time of closing. 
 
 Allg:oor|s boiiu'ht ftn epervlntmn iiro inil.i.Iid under the h-afI!iiir"Mprrhan<«se " When a rf«.'-t 
 wl.hea to know 1,h ^-un or )<«a on any ,«rticular line of good, ho .n.Tst opcn^Ji^te 12^tt^J 
 
 •c4'!int.* purchased lor urn, but not handled in ooonectiou with tho biainea*. do no* belong to thia 
 
 EEAL ESTATE ACCOUNT. 
 
 Debit for the value of tie property 
 rci)resented at commencing', for tlio 
 roxf, of tint aftinoarda purchasal, 
 and for all chir<jea. 
 
 Ciodit ff)r all amounts atjninstthf 
 priiji<iit.ij i('presente<l at commencing, 
 for proreeih, and for the value of ike 
 prop) rt If ut tlie time of clotdog. 
 
 rvtoM, storey dweDinor houses, &o., are usually inchided under this ber .ang, 
 
 CASH ACCOUNT. 
 
 Debit for the amount of cnnh on Ij Credit for all amounts of cash 
 tuind at the time of coramencin?, partd vntJc. 
 and for all amounts afterwanls re- 
 ceived. 
 
 rp?i^«f !ff''L^''?^i^''"'' ^'^'*i'- .^"» "' E^han-e Payable on deraeml, Post Office Orter* 
 o»«h^^ of l>posit, &c., nre mclufled iin.lcr this hi.i.fiiig. Oeneially, aU p«jer whtoh caabe 
 caahed iimnsdiaUly, when received by us, is re-aniud as ca<ih. *™"=™^' »" P'Ver wnion tan be 
 
 PEESONAL 
 
 Debit for the amounts tJiey oire lis 
 at commencing, for their subsenucnt 
 indebted. testn to its, and for all pay- 
 ments which we mak« to them on 
 account. 
 
 ACCOUNTS. 
 
 Credit for all amounts which v» 
 oil''' eliem at the time of coininencing, 
 for our subsequent iiukhtedtiess tc 
 them, and for all piiyments which 
 they make toris oa. account. 
 
 BANK ACCOUNT. 
 
 Debit for the amount deposited at 
 tlie time of commencing, and ft)r all 
 other gums deposited from time to 
 t.ine. 
 
 i 
 
 Credit for the amounts of checks 
 instiled, and for all suma otherwiac 
 
 tvilkdratoTU 
 
 ' ■, i 
 
 
ir 
 
 23 
 
 liOOK-KKKPlNU. 
 
 BILLS RECEIVABLE ACCOUNT. 
 
 Debit for tlie amount of others' 
 notes, acceptances, &c., wliiih are 
 on tutnd at tlie time of commencing,', 
 inul for the amounts of those after- 
 wards rtcfired. 
 
 Credit for the amounts of Others' 
 notes, Ac, duipusHii of. 
 
 BILLS PAYABLE ACCOUNT. 
 
 Debit for the amounts of our 
 notes, <fec., when they are redeem>d 
 by ics. 
 
 C'rorJit for the amount of our 
 notes, itf., which are in the /iiissi-ssi,,,, 
 o/othn-x at tlie time of cnniiiicncinj;, 
 and for tlie amounts of those after- 
 wards itmued. 
 
 -Not.™: AccJput.'^erA^.'' •'"'•" *''"*" '*'"*»"<'"' *""" ""-" how a,a!n.t ,.. ..oh as .Yo„.i«K>o. 
 
 EXPENSE ACCOUNT. 
 
 Debit for the outlay in runnino 
 the business. 
 
 of i 
 
 Credit for th(! j,fi-;r.f:< of itaJi's 
 
 If' ir 
 
 iu 
 
 ru.cr 
 
 i-irj,'cd to tills 
 
 account, and for the value of such 
 articles on hand at the time of 
 closing. 
 
 8j«i:j:LiLVt.TuerJ^™ '^'^ ■""^""''"^ ^'^"'"■"J. r-Uge, Office Book, and Furniture. Rent, 
 debi,ll;^t''trc'i't''Ll3c';^thr;,!,';re"^ °' "'-^ ^"^ ""«' oi- • -prat, «=cou„t for it. 
 
 INTEREST AND DISCOUNT ACCOUNT. 
 
 Debit for sums paid by ns for 
 the use of nK)ii(>v, and for sums 
 alloitid by us on debts paid to us 
 before due. 
 
 Credit for sums paid (<, u.t for 
 the use of money, and for sums 
 alhm-ed to us for debts puid by us 
 before due. 
 
 Interest is an allowance niaile f<ir the xne of money. 
 
 Discount is an allowance made for the payment of a debt bffore it becomes due. 
 
 As Interest paid out and Discount allowed bv us nff..r.t. (h» l,„oi„.., :_ .^.._,,.. ., 
 
 iSSSaJI^^^Ur'^-^" '"^^"•"" '"' ^^'^"- -'"-■ -- m;^1.j^::id 'of .nle^^^Ll^';;;; 
 
 At the time of co^menHn, accrued interest in our favor is debited, and that against us i. credited 
 At the tim. of clo^nff accrued interest m our favor i. credited, and that afc..„.st us is debited. 
 
HOOK KKKFINO. 
 
 OiiNERAL RULES. 
 
 23 
 
 All the preceding rules are imluded in tl.e folinuinjr f,nu-ni\ rules: 
 
 (1) The person, firm or corporation r.-reiving value without, .'ivii,.' ...,uil 
 VH uo at //,^ tnH>' is ni.uh' Dr., iiud ihn person, firm or corporation .'ivini- 
 V ilue without re.eiving eijujil v.ilue af t/tf (hue i.s ma.!.- Cr. " 
 
 (2) Th., thing received is n.a.h. Dr., an.l the thing parted with ia 
 uia<ie Cr. 
 
 EXERCISE I. 
 
 1. Bought of James Brown go<«|s on a.-.-ount worth $30. 
 
 2. Paid 11. Miih-r casli on arcount. .*lii(). 
 
 3. Beceive<l from L. A[(d.e(Ml ,a.sh S\J>0 <m account. 
 
 4. Sold gu(Kls to M. Hay for cash, 810. 
 
 5. Bougiit gofHJs from R. McKay for casli, .*!.■.. 
 
 6. Sohl Peter McCJarva, on iiis note, go.Mis vahicd at .i.*)0 
 
 7. Bought, of H. ll„ss !?10() worth of g,..ls. (;av.. ,u i^avmcnt ,nv ..ote. 
 O. n. llfiiry |.aid Ins nottr in casli, fi-iO. 
 
 9. Beceived from J. Jones .<ilO on account 
 IQ. Paid M. W. ires,H.ler!?10(»onuc.ount,. 
 
 11. Pai.l .$2 cash for Coal Oil for use in .store. 
 
 12. Bought of It. Miller go<xls valued at .«4"). 
 note at ."JO da3^s. 
 
 13. Bought of L. Mason gowls valued at .^70. 
 •'?40, the Ivilaticc on account. 
 
 14. Sold to James John.>toi, goo.l, valued at .S'JU. l{c<-civc.i in 
 his note at 10 days for 830 and cash for l)alan.c. 
 
 U). Bought of W. Hill, on my note at CD davs, ^oods worth 800 
 
 16. Sold 11. Corljett, on account, L>(»0 hush. Wheat at 9(»c. 
 
 7. Bought of L. Jones, f(.r ca.sh, :0 hush. Wheat at 85c. 
 
 18. Paid for Office Furniture, S'2') in cash, 
 
 ly. Bought a House and U>t for .$'J00 in cash 
 
 20. Paid for Fuel, cash 8"). 
 
 (a) Determine the debits and credits. 
 
 SET I.-RECORD OF TRANSACTIONS. 
 Clinton, Sept. 1, 1886.— Co.nmcnccd husin.'ss on Albert Street, investing 
 as follows :— Cash. 8500 ; 1(»0 bl)ls. Flour at 8^>..'>() ; 3n0 bush. 
 Wheat at 90c.; John Sniitli owes on account MO 
 J^ept. 2. Bought of R. Mills, for -ash. 100 bbj.s. Flour at .^5 
 
 " 3. Sold W. Hill, for cash, .)0 bush. Wheat at 81.0r^ 3 bbl. H.ur 
 at 86. ot). 
 
 4. Sohl-R. Fullerton, oh account, 25 bush. Wheat at $1 ; 15 bbis 
 Flour at 86. 
 Deposited in Bank cash $50. 
 
 Cave in payment my 
 Cave ill [(ayi.icni ca.^Ii 
 •ayment 
 

 r 
 
 ._.^.v 
 
 24 
 
 Sept. 
 
 8, 
 
 9. 
 10, 
 11. 
 13. 
 
 ^.-'i-_la 
 
 >< 
 
 17. 
 " 18. 
 
 
 21. 
 
 
 22. 
 
 
 2-). 
 
 
 27. 
 
 
 28. 
 
 
 29. 
 
 BOOK-KEliPINC;. 
 
 Sold J. Pace, on account, 50 bbls. Flour at 86.10; 30 bush. 
 Wheat at $1. 
 
 Received from John Smitli in full of account, cash $30, lii.s uuLf 
 at 30day.s for 810. 
 
 Paid cash for Books for use of Store, .810. 
 
 Lent R. Fullerton a $b bill. 
 
 P.'.id H. McDonald for repairing doors, iLc, cash $1. 
 
 Sold R. McNaughton 20 bbls. Flour at 86.10, on liis note at 
 30 days. 
 
 Bouijlit of P. McEwen, on my note at lO days, 10 bbls. Flour 
 at 86. 
 
 Received from R. Fullerton, on account, cash 8">0. 
 
 Sold J. Langdon 100 Ijbls. Flour at $6.10. Received in pay- 
 ment an order on R. Fullerton for .8100 ; John Smith's 
 acceptance for 8-00 ; cash for balance, .8—. 
 
 Received from R. Fullerton in payment of order from J. Lang- 
 don, cash 8100. 
 
 Received J. Fare's note at 30 days in full of account, .§ — . 
 
 Paid for Fuel, cash 810. Deposited in Bunk cash 8-00. 
 
 Paid cash for my note of l.'ith inst., 8 — ■ 
 
 Bought of A. Mann, on my note at 30 davs, 30 bush. Wheat al 90c. 
 
 Pai(i for Coal Oil, cash 8 i .20. 
 
 Sold ]j. Mason, on his note at 30 days, 10 bbls. Flour at 86.10 ; 
 98 bush. Wheat at 90c. 
 
 Inventory, .Sf//(l. SO. 
 
 12 bbla. Flour at $5.50 §GG 00 
 
 127 bu.sh. Wheat at <>0c 114 30 
 
 Total 1180 30 
 
 W*^' 
 
 
 •^ 
 
 r:^. t- 
 
 
^fAji^iwrn 
 
 WW 
 
 B00K-KEEP1.\0. 
 
 2r) 
 
 SPECIMEN DAT BOOK. 
 
 made ou ,t, v ..,.. (I.e.e .re corrected they should be put in the blank 
 Clinton, September 1, 1886, 
 
 Albert titreet uiveMtiiij aafoUoivs: 
 
 Ca*A on haiiil . . . 
 
 100 hbls. Flour . . . 
 
 iloO hiuih. ]Vh>,it '.'.'.'.'.'.'. 
 
 John Smith oirn.i 
 
 .$3 SO 
 'JO 
 
 Bouriht of R. MUI^ f„r c<i.-*h — 
 100 l.bU. Floui\ ! 
 
 .#.5 
 
 oO hnnh. Wheat jftj or, 
 
 i> hbls. Flour .....'; .;() 
 
 Sold W. mil f or cash. -^ 
 
 4 
 
 Sold R. Fiilhrton on a/r, 
 
 i'.'i hush. Wheat . .fi 
 
 15 hbh. Flour '...'.'.'.'".'.".. 6 
 
 6 
 
 Deposited in Banl; — 
 C<w//. 
 
 Sold J. Pace on a/r, — 
 
 /iO bbl.'i. Flour ^f- JO 
 
 SO bush. Wheat 1 
 
 8 
 
 Received from John Smith in full ofa/c,- 
 Co-sh 
 
 His note at 30 dayaft/r 
 
 — 9 
 
 Paid canh for Boohs for Store 
 
 10 
 
 Lent R. FuUerton a S-J bill . . 
 
 — // 
 
 Paid H. McDonald for rtpalriu'j t/( 
 
 oors, (ic, ca.ih. 
 
 mo 
 
 il.'iO 
 
 270 
 
 40 
 
 52 
 10 
 
 25 
 00 
 
 .'0 
 50 
 
 S05 
 30 
 
 SO 
 10 
 
 1,3G0 
 500 
 
 72 
 
 lis 
 
 50 
 
 335 
 
 40 
 
 10 
 
 ».4SS\ 
 
^-l^h. 
 
 
 BOOKKEEPINQ. 
 
 Clinton, September 13, 1886. 
 
 Brought forward 
 
 Sold R. McNaiighton, — 
 
 20 bbls. Flour $6 10 
 
 Heceired in pai/menl, — 
 
 Ilin note tit SO days for $133 
 
 IS 
 
 Bow/fit of P. McEicen, va mil note at JO daiis, 
 
 10 IMs. Flour SH 
 
 17 
 
 Received from R. Fnllerton on ajc, — 
 Cuah 
 
 18 
 
 Sold J. Liingdon, 
 
 JdOlihls. Flour $e JO 
 
 Reccitrd in piiiiiiiint,— 
 
 An ordiT on R. FnUi rlnii $100 
 
 John Sniitii's iirciptin'ce X'WO 
 
 Cadi for balaitjc 3 JO 
 
 20 
 
 R'ceired from R. Fidhrlon in payment of Order 
 receiredfrom J, Linnjdon, — 
 
 Cash ; 
 
 21 
 
 J. Pace gave his iiute at SO days in fullof ajc. 
 
 Paid for Fuel v'tth cash 
 
 Deposited in Banh,- 
 Cash 
 
 25 
 
 Paid cash for riiij note of loth inst 
 
 Bought of A. Maun on viy 7i<>ie at SO days, — ■ 
 
 SO hush. Wheat $ Qo 
 
 no _ 
 
 Paid for Coal Oil vith cash 
 
 20 
 
 Sold L. Maso'i on his note at So days,— 
 
 10 lihls. Flour $6 11) 
 
 OS bush. Wheat go 
 
 Inventory, — 
 
 Flour, 12 hhls $5 SO 
 
 Wheat, 127 bush go 
 
 Total 
 
 61 
 
 SS 
 
 SO 
 
 66 
 HA 
 
 180 
 
 30 
 SO 
 
 2,488 
 
 1S2 
 60 
 60 
 
 610 
 
 100 
 
 335 
 
 10 
 
 200 
 60 
 
 27 
 1 
 
 U9_ 
 .212 
 
 20 
 
 40 
 
 
BOOK-KEEPIua 
 
 27 
 
 SPECIMEN JOURNAL—SET L 
 
 ■'s soon as tl.e J ,rn.,l I ! ^'^° ''^ ^''^J^'^^ ^"••^^'- ^Ins is to l.e iill,,l 
 ^'l'« page of tL t/t 7 '" "'*"'"■ ^ ''« *^«^"""^ ^« tl.e left is 
 
 posted.^ As oon r?'"' ■'^";' "i"^* ""V'" ^'''^'^ ""*'' ''^ft'^'- tl.e ent , ^ 
 :A.iunaltheptrof trr" '■•^'' transferred f.om the I^.ay Book "o^the 
 of the Day iFook ""™"' ™"^^' '^^ ^'^^^^ ^^ *1^« '^^^^^ to the lo t 
 
 M(/se. 
 John Smith 
 
 Mdae. 
 
 Cash 
 
 R.Fi 
 
 Bank 
 
 J. Pace 
 
 Cash 
 BiUaRec. 
 
 Bscpenae 
 
 fi.Fulkrton 
 
 Clinton, September 1, la86. 
 
 Dr 
 
 To Stork 
 S 
 
 Dr. 
 
 To Cash 
 
 Dr. 
 
 To Mdse. 
 
 Dr. 
 
 To Mdse. 
 6 
 
 Dr. 
 
 To Ca^'h 
 
 Dr. 
 
 To Mdse. 
 8 
 
 26 
 
 ra 
 
 To Cash 
 
 soo\ 
 
 8m\ 
 40 
 
 500 
 
 1151 
 
 60 
 
 335 
 
 30 
 10 
 
 10 
 
 2,487 
 
 1.360 
 
 60a 
 
 72 
 
 115 \ 
 
 60 
 
 336 
 
 40 
 
 10 
 
 2.4871 
 
"1 
 
 II' 
 
 
 •■ *,\ 
 
 
 :^ 
 
 M 
 
 BOOK-KESPING. 
 
 Clinton, September 11, 1886. 
 
 i 
 
 McpeTue 
 
 Br <jht forward . 
 Dr. 
 
 Bin Rec. 
 
 Dr. 
 
 Milse. 
 
 Dr. 
 
 Cash 
 
 Dr. 
 
 To Cash 
 IS 
 
 To Mdse. 
 15 
 
 To Bills Payable 
 17 
 
 To R, Fulkrton. 
 IS 
 
 J?. Fullertoii Dr. 
 
 Bills Rec. 
 
 Ca^h " 
 
 To Mdse. 
 20 
 
 Cash 
 
 Dr. 
 
 ToR. Fulkrton. 
 SI 
 
 Bilh Rec. 
 
 Dr. 
 
 Expense Dr. 
 
 To J. Pace. 
 
 To Cash 
 
 Bank 
 
 Dr. 
 
 To Cash 
 
 Bills Payable Dr. 
 
 To Cash 
 
 •27 
 
 Mdse 
 
 Dr. 
 
 To Bills Payable 
 28 
 
 Expenx 
 
 Dr. 
 
 To Cash 
 
 BUU Etc. 
 
 Dr 
 
 To Mdse. 
 
 S€ 
 
 26 
 
 20 
 
 X 
 
 26 
 
 26 
 
 26 
 
 26 
 
 26 
 
 ?6 
 
 2,487 
 1 
 
 12 * 
 
 60 
 
 1,0 
 
 ion 
 2110 
 
 a 10 
 
 JiH) 
 
 3-V> 
 
 10 
 
 200 
 
 CO 
 
 IP 
 
 4,212 
 
 2,487 
 
 20 
 
 f*,o 
 
 60 
 
 SO 
 
 610 
 
 100 
 
 SSo 
 
 10 
 
 zoo 
 
 60 
 
 27 
 
 I'/J 
 
 £0 
 
 SO 
 
 40 
 
 4,212 I Uti 
 
 '^yim--.'i*:,'r£t*iCiil''?£i,--.- '' ' .c'-'ki'- 
 
 ■>*^' . >::i-J. 
 
BOOK-KEEPINQ. 
 
 29 
 
 SO 
 
 
 >■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 .. 1 
 
 
 
 
 
 
 
 
 
 
 -— _ 
 
 
 
 
 
 
 
 
 ■n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 =^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ( 
 
 
 
 
 
 t«. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 O 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 % 
 
 
 
 Q 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ? 
 
 
 
 H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 « 
 
 
 
 ^ *^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ""■ 
 
 w 
 
 
 
 ^^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 >3 
 
 
 
 r1 
 
 
 
 , 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Q 
 
 ~ 
 
 
 v;? 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■s 
 
 s 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 ^ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■^ 
 
 
 
 
 
 ■ ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 V 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ill 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 3 
 
 1 
 
 
 
 
 
 
 ! 
 
 
 
 
 
 
 *^ 
 
 
 
 
 
 
 
 5j 
 
 
 
 
 
 
 1 
 i 
 
 I 
 
 1 
 
 < 
 
 1 
 
 ? \ 
 
 S5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 H 1- 
 
 (^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ; 1 
 ' i 
 
 M^ 
 
 ■> 
 
 
 
 
 
 
 
 
 
 
 ( 
 
 ^1 
 
 
 
 
 \ < « 
 
 O Q UJ IL O Z 
 
 4 sf -1 
 
 S z° o-O" ' 
 
 Oh : 
 
 >S 
 
 >-N 
 
 ll 
 
 i 
 
 1 
 
 1 
 
 
 1 
 
 ' 
 
 % 
 
 1 
 
 1 
 
 
 1 
 
 1 
 
 
 <; 
 
 *V 
 
 e« : 
 
 34 
 
 « 
 
 r;i 
 
I' 
 
 30 
 
 BOOK-KKEHINfJ. 
 
 INDEX TO LEDGER-EXPLANATION. 
 
 It IS importanf (<> indrv ;,„ ..•.•..nnt ;,, t i ; • . 
 
 as this wTii p,,.„„t ,1,, ,,.;.'', ;'''.;;,;i"'";''v' '■"''", '■^s''-' 
 
 Til,! f,„in pm».„t,.,I is tfiTO,,] ., v.iivcl hi.l.'v- wi,h„ fl.», 
 -l...«-.> ^vill 1.0 f,,™X'n ';''■'''''-■'■''.''■'' "' ",'" '"'™ '" "!"•■■'' 
 
 'I'" ;.i'-' '"- f; ..':;;..;. n,J:, ;:."r, r ■ '■; ,t ;,;:";,t7' '•■' 
 
 SPECIMEN LEDGER. SET I. 
 
 /ncbtsatcommfriflne, Wlili,lrawal.s\ c* 7 
 
 /InvcstinentH aihi\ 
 
 '-■t (lain, if am. 
 
 Cr. 
 
 1S86 
 
 1. Why Jfaa no entrj- been i.iado on the Dr. side? 
 -'. J\ li:it 19 poHtwl to the Cr. side ' 
 
 t.^theVr^nr!';.'''''' *'"-' '''■'■''' <'orre8ponriin;f 
 t) the credit <.f this McTum.t f..uii,|-' 
 
 isst: 
 
 '^''Pt. I I Jii/ Sundries 
 
 1,S60 
 
 I 
 
 '^'"Iv'.w.r,'^'' te"" "^fock- staiKis for 'the 
 •■ ■■ It' r ■Vo'i'V'-; '■■"''"■■■ " '-^"Prietor" or 
 
 ao;;i;;:t"in.;:rshi.r„;!:';s:;,i;::^ri^itw^t;;i? 
 
 (RerdiTo.1 ) 
 
 Caj//. 
 
 /.v.sy; 
 
 
 ^,j,t. 
 
 i 
 
 4( 
 
 ,S' 
 
 ** 
 
 17 
 
 i( 
 
 IS 
 
 
 ..>0 
 
 T< 
 
 Stock . . 
 
 ' Md.se 
 
 ' John Smilh 
 • n. Fnlhrton 
 ' M,ls^, . . . 
 ' li. Fullertuii 
 
 (PaldOiit.) 
 
 ',(10 
 Si) 
 
 00 
 
 310 
 
 J DO 
 
 1. What appears on the Dr. side of the Cash 
 _^ account? What on the Cr. ? "i^^ ' asn 
 
 ;■ S^^^^'^.^'^''^'' it« sides, which 
 ;f. What does this difforciice represent 7 
 
 '" 'I'f ing a statement „f liesources and I.ia- 
 bihties and also a stateniint of Gains aid 
 Losses from this I,e,|j:cr. into «hirh wo d 
 you nla.^e the amount of cash on hand" 
 
 • issi; 
 ! s,i>t. 
 
 3'i 
 
 B,j M,ht 
 
 ' ' Hank 
 
 " J{. Fidkrton 
 
 500 
 
 50 
 
 10 
 
 5 
 
 1 
 
 10 
 
 SOG 
 
 60 
 
 1 
 
 " Bank .. '" 
 II Bi//.i Payahle . 
 
 Expense .... I 1 "O 
 REM.tRKs._The student mu.st endeavor to grlsn 
 the meaning of the terms used in No 4 
 
 dimcilty i„- distii^nl^hin.:^ {"^(['0' ire't 
 
Dr. 
 
 (Cmx ) 
 
 1886 
 
 
 
 Sept. 
 
 1 
 
 To.^toch . .. 
 
 *t 
 
 ':> 
 
 " Canh .. .. 
 
 it 
 
 75 
 
 " JiiU.t Pa;- 
 
 tt 
 
 O-v 
 
 
 
 
 
 HOOK KKKI'INCJ. 
 
 McreJuindf'sc. 
 
 
 
 
 issi: 
 
 
 S.'l) 
 .'•nil 
 
 
 S./>l. 
 
 
 i'lii 
 
 
 1 " 
 
 
 j^ 
 
 
 
 
 
 
 it 1 
 
 \ 1 
 
 1 
 
 1. What does the first entry on the Dr. side of ' 
 this acct. show? 
 
 Z What does the Dr. total represent? 
 
 ■X What the Cr.? 
 
 4. When the Mdse. is all sold, what must the 
 difference l)etweeii the sides show? 
 
 I 
 
 J 
 
 / 
 
 /.v 
 
 ( l^nKvftU.\ 
 
 liil Ca>,h .... 
 " J{. F^ilhrt,,,, 
 " J. Pan- . . 
 " BUI.i LW.. 
 
 " Slllli/rii;i . 
 " liilhP.c.. .. 
 
 SI 
 
 Cr 
 
 7.: 
 II.: 
 
 I :j 
 
 till) 
 
 ^ 
 
 Kkmakks.- Rv the Inventory the (foods remain- 
 ir.- iinso.d are w,,iih .^isd.io. When tliese 
 KOO,U were hoiiu'lit the ,;o».l of them was , nter- 
 el on the Dr. side of this ;u-i-,>wnt, Imtuslhev 
 are still o„ hand and tlierefore renresent value 
 his a.voiint iiiiisl heereilired with su.^h value 
 Ijvfor" ,t IS 111 a pusition to show whethe • the 
 __dr:t2iT has jaineil ,,r lost on Jlerchaiidis,. 
 
 /' Ihcr's N'litcsX 
 V Iteceived. / 
 
 1S8G 
 
 
 Sept. 
 
 8 
 
 i« 
 
 IJ 
 
 (( 
 
 IS 
 
 t< 
 
 21 
 
 i( 
 
 S9 
 
 Bills Receivable. 
 
 /Otlicr'i NoteaX 
 VFartc.l With. ; 
 
 To John Smith 
 " Mdse .... 
 
 " J. Pace'..'. 
 " Md.ie .... 
 
 JO 
 
 I. 'J 
 
 14'.) 
 
 ,.'0 
 
 1. What does the Dr. footing shew? 
 
 •1. Why is there no entry on the (Jr side ? 
 
 3. How many notes .ire now on hand ? 
 
 4. What entry in this aeut. wtii-n .i note is eol- 
 
 leeted ? 
 
 b. Whether would the difference hetween the 
 
 ^.disof this aeeount l.e |,i,t into a statement 
 f lu.sour,.,.s and Mahilltios, or into one of 
 • ■aius and Losses? 
 
 .^Iv Notes \ 
 KedeenieU. / 
 
 ISSO 
 
 Sept. 
 
 To Cash ... 
 
 Bills Payable. 
 
 /My No'e3\ 
 V Issued. / 
 
 1. Why was thfs acct. closed on Sept 26th* 
 
 2. Why re-opened on the 27th ? 
 
 J. When is an entry made on the Dr. side' 
 W hen on the t'r 1 
 
 1S86 
 Sept. 
 
 Sept. 
 
 Dij Md.-ie. 
 
 !7 li;, Mdse . . 
 
 
 
 
 CO 
 
 
 CO 
 
 
 . 
 
 .J-v 
 
 
32 
 Dr. 
 
 I Ammint \ 
 
 \I><'|M)«ltnI.y 
 
 /aw; 
 
 Sept. 
 
 To Cull 
 
 BOOK-KEKPIM;. 
 
 BanA'. 
 
 ^ VVilhilrmn./ 
 
 Cr. 
 
 r.n 
 
 i'OO 
 
 1. What (lopN the Dr. side shew' 
 
 2. What thy Cr. ? 
 
 3. How iiiiich is<li'poBitefi? 
 
 4. ». hither .Ioch !hi» bhow a Kesource or a Liabil 
 ^y\ '■ Kxphiin. 
 
 n. In what way do husineas iikt, ,,ny their (l.t.is 
 with immev <lep<wite<l •' 
 
 Sept. 
 
 (My Ancnuiit \ 
 AKainat Him > 
 
 J To Stork 
 
 John Snn'fh. 
 
 Asw; 
 
 Srpf. 
 
 /His AcciHiiilv 
 \A;{ahi»t Me. / 
 
 40 
 
 .V «^^."'i"' ""'" ««™«nt floscfl on Sept. sth ' ^ 
 -'. Whut .Iws the Dr. side of every IVrsonal .Ac- 
 count shew' 
 
 / My AiTiiiiiit \ 
 V.Afc-alnat Uiin.) 
 
 <V /i;) S II Ill/rim .... 
 3. Kxplain the entry made on Sept. Irt 
 
 40 
 
 40 
 
 Ji. Fuller ton. 
 
 /Hi.s Ac:i^nint 
 \ Aiialiwt 
 
 (^nint\ 
 >t Mr. ) 
 
 ISSr , 
 
 j 
 
 Sept. I 4 To Milie 
 
 " ;/" " C'anh 
 
 " IS " M,Up ,„„ 
 
 1. What does the difference hetween the sides of 
 thw account shew ? 
 
 11.-, 
 
 o 
 100 
 
 ISHC, 
 Sejit. 
 
 Rii r,i./, 
 
 S. What is meant liy Personal Account 
 
 .-.0 
 1(H) 
 
 I M.v Vci-nunt \ 
 VAgaliiat lllrii. / 
 
 J. Pace. 
 
 /His Accouiit\ 
 \ /Vpilnst Me./ 
 
 issi: 
 
 Srpf. 
 
 To Mthe 
 
 s.i; 
 33r, 
 
 1. KNl>lain the closing entry. 
 
 '1. When is a fersonal Account debited ? 
 
 8. Uhen credited? 
 
 ISSO 
 Sept. 
 
 Bi) Bills Rer 
 
 snr, 
 
 S.J5 
 
 (outlay.) 
 
 4. Is it necessary to take this awoimtinto «)nsi(l- 
 eration when testing tlie equilibrium of the 
 ;>e<iger ? Why V 
 
 E.vpense. 
 
 (ProcecUa ) 
 
 ■ Sept. 
 
 To Cash 
 
 10 
 
 1 
 
 10 
 
 1 
 
 '0 
 
 1. What kmd of outlay conies uniiertliis heading' 
 
 L. Here the debit8ideamount8to?2'2.'io Whether 
 
 would this be entered in a Statement of (Jains 
 
 and Losses or in one of Resources and Liabil- 
 
 ities? Explain. 
 
 3. ^Vhich side of this account is likely to be the 
 
 greater? 
 
 4. How does this account affect the Stock Ac- 
 
 count? 
 
 
HOOK KKHI'INr.. 
 
 TRIAL BALANCR. 
 
 3.{ 
 
 ..^v: ¥SS"?3ir'"ii t.^'^ii^!r"iii;: - « --r 
 
 .mH., the sum of the debits must be o^ 1 ft u J. . -'^^^ixm-l.ng 
 ..ther woitls, the Le<Jger must be in ..m 1 r ^ a Tf ta^l ,''"' f j ''''' '" 
 .ne error at least has^rept i„, an.l it :nS "d Lv" d b f :;;^^ 
 
 fo be erase.1 aft.,^. ar,k He ^v•iI t . , d 1 the Vv^ 1 '7"''' "^'' '^ 
 foiTii given below. Tf th»> amounts of t',« T>.. >;, «« shown by the 
 
 -orrespond to the totals of the Day BcK^k a"»d Journal "'*' 
 
 eor^t" *^" ^"*^ ^'*"'^ ^ satisfactory, it is assumed that the work is 
 
 i 1 
 
 Trial Balance.—Set 1. 
 
 .10 
 
 .?/ 
 .11 
 ■ii 
 
 ACCOUNTS. 
 
 Stoch 
 
 Cash 
 
 Mdne 
 
 Bil/'i Jfec. . . . 
 Bills Pan... 
 Bank. . . . 
 li. Fulhrt,,,, 
 £xj>emie .... 
 
 J*roo/ of EqiilUhrium . . . 
 Ainuaiit of Closed A(r/„. 
 
 Total 
 
 DR. 
 
 1,062 
 
 1,407 
 
 SIG 
 
 S.-)U 
 
 20 
 
 20 
 
 S,777\ 40 
 
 4,2U 
 
 40 
 
 CR. 
 
 l,.3r,o 
 
 S.S7 
 l,40.i 
 
 SO 
 so 
 
 i'7 
 
 
 ISO 
 
 3,777 
 43.'-, 
 
 40 
 
 4,S12 I 40 
 
 In business the books are usually balanced once a month anr? tJ,. T • i 
 Book. .Inch ,s ruled so as to have a set of columns f.,r Lh month of Jhe 
 
 Bal 
 B 
 
 
 fcl 
 
 DETECTING ERRORS. 
 Many rules have been given for detecting 
 
 any practical value. 
 
 l.ut only a few of these a.^ ..urui-t^ i;;'^;,;'^.""'"-"' ^'" .'^"'^^ ^*'-'^-. 
 

 S4 
 
 linoK KKKIMNf;. 
 
 Tlio following,' (lirc.fidiis m.-iy i'in\.' helpful : 
 
 (I.) IVfako Miiv tli.ii tlir .•..liuuus (if the Triiil Poilance are pronerlv 
 fuMt'd. ' ' '' 
 
 (2.) T«'st the ffMitiiigs of the jucounts in the Ledger. 
 
 (3.) I'iii.l (.lit wlietli.T tlie footitigs are tnuisferred .•orreotlv to the 
 I'.iilaiice Sheet ov not. 
 
 (4.) Add the coluuins of the .Touinal t<j see if it Ivdunces. 
 
 (").) Examine eaili Journal entry by itself, end also the posting of ic. 
 checking in both the Journal and the Ledger. l*hic<- the check mark (,/) 
 opposite each amount. 
 
 (fi.) Look through the Ledger for unchecked entries, and when one is 
 found .search for the cause of its ajipearanee. 
 
 In most cases it will not he necessary to resort to ail these; but until 
 the error is found the foregoing should be applied in the order in which 
 they are given. 
 
 1; 
 
 V^ 
 
 ■IK. -■■ 
 
 i 
 
 i^M' J^z 
 
 CORRECTING ERRORS. 
 
 f Day .v.'jk. No eiasing is allowable in a Ixnik of original entry. If theA 
 amojfi i wrong ru'e a light red line through it, .,nd then enter the 
 correct amount over that which has be-n cancelled. 15ut if the entry is' 
 .altogether astray, an.l if it has go-ie no further (ha:i the ])ay i5,M)k, mark 
 it " void, corrected j.age--,'' and make u new entry on the page mentioned, 
 there referring to the one on which it first appeared. It may l)e necessary 
 to make explanatory entries. These will be discussed heieafter. V't--* 
 ever the correction made, it iimst not in any way render illegill- 
 original entry. 
 
 Journal. "When the Journal is n<jt tin; book into which llie transjictions 
 are entered as they occur, an occasional erasure of a word or tii'ui-e does 
 not seem very objeciionable ; but, if an entry is altogether wrong, it jm 
 should be marked " void,' the proper references being given. Cross | 
 entr^s are sometimes employed to correct errors in the Journal. ^ 
 
 Ledger. If the wrong amount is given, correct it ; but if the entry is 
 made to tlu; wnmg account make ciphers of the figures expressing the 
 amount an<i post coi rectly. When two accounts having the same heading 
 are opened, as is ahiK.st sure to l)e the case if the indexing is not properly 
 attended to, close one of them into the other and give the proper reference. 
 If the same amount should be twice entered, the best way of correcting it 
 i-s to make in the second entry ciphers of tlu; Hgurcs in the money culuma. 
 
lluuK kkkimm; 
 
 35 
 
 Th,. stu.l«ut win m.iko <,uf, tl,« fulh.uiM- .st.ifPinet.fs from his 
 Looks : 
 
 /. Stalctncnt of Losses and Cains— Set I. 
 
 own 
 
 MIOINTS. 
 
 MirrhiDiitUf., 
 
 K.i/H-iise 
 
 Cr. — Procints 9t,4<).l ;.'() 
 
 Unsold mo ,J0 
 
 Sl.^'SS 20 
 
 Gain 
 I>r.~Ovll«ij, Lwu 
 
 Dr.—Cwt ^_^t/7 Oil 
 
 Gain 
 
 utidu, Lot» 
 
 Uyfereucr vr Si-t iJain^ 
 
 I.ossfy. 
 
 <1AIN-.S. 
 
 "2 
 l2} 
 
 nr, 
 
 17H 
 
 i'O 
 SO 
 
 W [ 170 
 
 r,o 
 
 an 
 
 V.y Resources or Assets we ino.m all v,h]u..s ..i.l,,.,- in our pcssossioa or 
 .w.Mj^ to us by others whu-h are appiiciUe to tiie payment of debt: by 
 Liabilities we mean all valu.-s which wo owe to others. 
 
 //. Statement of Resources and LiahiUties-Set 1. 
 
 AtOOITNTS. 
 
 Ca«h . 
 
 ni'is y.Vr 
 
 Hit's Paijahle... 
 
 Hank 
 
 A'. Fnlterton 
 
 Dr.— Amount rec'</ 9l,0G3 00 
 
 Cr. " jMid out i'57 20 
 
 Merchandise , 
 
 Proof. 
 
 /ial. on hand 
 
 Dr. — Others' notes rec'd . .. . 
 
 Cr.-—Mij not's Umed 
 
 J)r. — Amount deposited 
 
 Dr. — Afy account against i,lin .. . .$.\'it 00 
 Cr. — His account against ine ' ir.Q 00 
 
 KKSOtTRCES. 
 
 Bnl. due me 
 
 Amount unsold, valvtd at 
 
 Dijftrcno: ^r Protnl jV*< HVriA, 
 
 Xtl Investment ^1,300 00 
 
 Oain 
 
 l'>4 SO 
 
 Presfnt Net VTorlh #/ 
 
 SlJi. SO 
 
 224 
 810 
 
 SCO 
 
 70 
 ISO 
 
 IMl 
 
 so 
 
 20 
 
 SO 
 
 SO 
 
 LI,, i.rrras. 
 
 t,fl4 
 
 um 
 
 $0 
 SO 
 
 r;|« 
 
Sfi 
 
 HOOK KtKPINd. 
 
 'A' 
 
 3%i 
 
 
 M.t, 
 
 THE TWO CLASSES OP ACCOUNTS. 
 
 Thr |.u}.i!. who l.as .n.Uvoml fuitl.fully t.. answer the ..urstions riven" 
 ... .•omu.ct.m wMh ,h.. a....ou,.ts i,. ,h., t/.1«..,. ..f S..f I, „ st ",^h ^^ 
 fhat two sots uf „..ul,s ,a,. 1... ol.tai,.,.,! tV.„n i,. TU,^i, ,„t,U of the 
 Cash Acoun, ,s .*! ,.;,, .hi..h na.ans sin.ply that that anount of C. h 
 .as mv-yv,/ .luHMK th. tern, of huMne.s. The (V. si.le shows that $837 ■>'/ 
 
 "TV "" .\" *""" "".'''"' '• ''■'"■ 'li»''-..- l-tween the an.ou^t 
 
 >.h.,h, in this partuular .ase, ,s ><2-4.Sij. U this a IJesouree or, in otluT 
 wonis, ,s ,t s..n.etiunK .,wn.,l by the dealer, to whieh a financial value is 
 Httaehe.1? A n.on.ent s n-fleetiun will make elear that when a ciitlererue 
 exists the Dr. si.le ..f the (',.sh Ae.t. must ),e the greater, eonse.mently 
 when It .I.K.. not close itself, it n.ust shew, what in ..usuuLs lang .age s 
 
 Again, consi.ler R. PuUerton's Acct. Tho Dr. tot^i) is ifi-iQ that is 
 our account against hiin an.ounfs to that s„n.. I5ut hi.s a^;: against vs 
 mnounts to .^1:,(), therefore there is a haian.e of .^^70 i:, our favon Fr."„ 
 a tinan.nal iH..nt nt view this is l.n.ke.l upon as ,.,op,.rty whieh In-longs to 
 
 us hence it is an f.s.Y or /,V...„ Tf ,1,. Cr. si.le ha.l been the greater 
 
 the balance Avoul.l have been in his favor an.l for that reason woul.l have 
 been to us a Itabihf;,. H.nco a Personal Acct. shew.s eitlur a /.V.o«r.r 
 or a LtatttiUif. 
 
 Take now the Mdse. Acct. The Dr. side repn-sents the cost of the 
 g<KHls, am the Cr. si.le the proceeds. If the property is all sol.I the 
 <h lerence be. ween th,>ni must evidently shew the ,,ni„ ov h,s,. Tf the Dr 
 si.lo IS the_gr,-at.-r th." .lim.ren.e is ;. /o.vx, i.ut if tla, Cr. is the greafr the 
 d.irereneeisa^/.,«. Tt a p.rt of the g.Knls remains unsol.l, the account 
 must iH, cr.;. hte.l with its ^.■due.* After this is d..ne the .liHerence b,. 
 tw.^..n the .sules will be th.' gain or l...s .„, th.> inervhan.lise han.lle.l. The 
 im.perty «uW,/ .should manifestly b.. consideiv.l a R,.s.,ur<.e. AVe ome to 
 fh., cndusion tl,..n that when the Md.e. Acct. does not close itself it 
 exnibits a (•am <»• a Lnnx. 
 
 If this is true of^th.. :^r.lse. Acct. it holds good for the very .s^ime 
 rea.s.)ns in the case of all Property Accts. 
 
 The Expense Acct. evi.lently shews a Loss; but it is unneces-sary to 
 multiply examples, as the toregoing are quite sufficient to eataolish the 
 tact tliat{aceo«n<« »iay he dir. kd into two classes, viz.: 
 
 (1) RESOURCE AND LIABILITY ACCOUNTS. 
 
 (2) LO-SS AND GAIN ACCOUNTS. 
 
 2UU butili. ut 
 Now on the 
 , therefore, 
 Cr. side. 
 
'^ . . .^ 
 
 lliiuli KI.!.ilNc,. 
 
 37 
 
 CLASSIFICATION OP THE ACCOUNTS OF SET I. 
 
 f Canh 
 J /iftiiJI: 
 
 Resource and Lialnlxty Acamnts | //<//w i'.,,,ahlt 
 
 •lull II Sill i til 
 
 It. Fnllirtim 
 ./. /'<I</K 
 
 \ (^/iirt) 
 
 Loss ami Cain Accimnf.ti.. . , .)/, ri/nnn/i^r 
 
 n will h« ..bsorved that this dH.s.sifi,.,,f i,,,, U l.,„...l .„, fir^l di..,. ,.f th« 
 
 rz 'z:^X"; V;tt' 'T'"' "^ "■•• '"■'"'•''■"- i'-" ;»- - 
 
 , Mi ■?.!. V ; I ''""'" ""■ 1 "-"I"" ■'""••- .st.'U.,li„j, „'i..<,.h>f,'h, not 
 
 lu'iH taivfix with the ]!.s.,urvi>, 111.1 I iil.ilit^r \ . i • . 
 
 CLOSING THE LEDGER. 
 Ill business it is custonian- at l.-,i>t .m,-,. ■, v....>- t . i 
 
 ;•'■ '"» -,""■' .■■'■ "■" «.-i^ ■•" 1 1, .'..,";:. .■',,;■■;;,;; :;.,;;::;; rT: 
 
 The accounts shewiii'.r resoum-s an'l li;il.ilifi,.s 1,. If .1 , 1 i i i 
 
 it is.iesi.va.h,to.h.so, a„.. th,. ..aian....^;:;' ur.; ;;«, ^1.:: ;r: ,:':; 
 
 transferretl to an account which niav 1... oi.cn.-.I !>, tl, > r 
 
 purpose of receiving them. ' ' ' '" ^'''^ ■^'"'S'''" ^"'^ ^1^^' 
 
 GENERAL DIRECTIONS FOR CLOSING. 
 
 (1.) If not aircady (lone, tfst tho (■iiuilil„itii,, .,f ti, r -. 
 
 uffa Trial Balanco, as .l.-snil,,.,!. '"""""'" -^ ^ I"' L«.gcr ',y taking 
 
 (2.) Open a Loss ami Cain Account, if not airea.jv „,,„„.,, i„„. ,,,,;,,, 
 to close evcy account that .hows l.v the ,li,i;.,vncc bciw. -n ,. s lo^. 
 :i loss or a gam. -^I'lts Lii..ei 
 
 (3.) Opena Balan.r Account inn. \vlii<ii 1,, , I,, ,. ,1 ■ 
 
 in the IxHlger. This account wUl recci^c aU ,hl:7n;!;t;:; i;:::""' '"^""'^ 
 
 ( I.) If an account h,-,. an Inventory represent it. ^^ a TJ. onrco onior it. 
 transrernng it at once to »)... n.. .:.),, .^^.i ,. , . >'' 
 
 auc. Account., ••n-o, ..,,,.,/„..,■ - ^v' z'4^',"fi::!-.'::t 
 

 38 
 
 BOOK-KEKPINr.. 
 
 and the entry will be in black ink. This being done in the case of all 
 the accounts having Inventories, the Ledger is in a proper condition for 
 closing. 
 
 (5.) Omitting the Stock Account, examine the next in order, so as to 
 determine whether it shews a resource, a liability, a loss or a (jain, by the 
 difference between its sides. If a resource or a liability, is shewn enter 
 the difference on the smaller side in red ink " To " or "/»'y Balance," as the 
 case may be, carrying the amount at once to the opposite side of the Bal 
 ance Account, and using for explanation the heading of the account just 
 closed. If a loss or gain is shewn enter the amount in red ink on the 
 smaller side " To" or ' Jiji Loss and Gain," as the case may be, and trans- 
 fer to the opposite side of Loss and Gain Account, using for explanation 
 the heading of the account just closed, as "7i^" or " To Mdxe.," ''By" or 
 " To Expense." Proceed as described unal all the accounts in the Ledger 
 are closed, except Stock, Loss ar.d Gain, and Balance. 
 
 (6.) Take a Second Trial Balance to see if the three accounts now open 
 are in equilibrium. 
 
 (7.) Close Loss and Gain into Stock by making in red ink, on the 
 smaller side, the entry " To " or "By Stock." Carry the Net Gain or Loss 
 thus found in the Stock Account and make the entry in black ink on the 
 Cr. side, if it is a gain, but on the Dr. side if a loss. In a partmrship 
 business the net gain or loss will be divided according to the terms of con- 
 tract, and entered into the partners' accounts as into Stock Account. 
 
 (8.) Close Stock (or the partners' accounts) into Balance, which ought 
 to close itself. 
 
 ■sm^>}M}.n^ETMmm'^. 
 
Dr. 
 
 i«ook-ki:kpin(}. 
 
 SPECIMEN LEDGER CLOSED. 
 Stock. 
 
 39 
 
 Cr. 
 
 ISSG 
 
 Stpl. 
 
 .10 
 
 To /ifilanrr . 
 
 1,514 
 
 1/>U 
 
 ISSG 
 Sept. 
 
 Oh. 
 
 /j By Hnndries 
 
 30 " Lous a ltd (Jain 
 
 By Bill, from ol<l 
 ale 
 
 1,360 
 lo4 
 
 1,514 
 
 Cash. 
 
 1SS6 
 
 
 Sept. 
 
 1 
 
 
 3 
 
 
 S 
 
 
 17 
 
 
 IS 
 
 
 jn 
 
 To Stock 
 
 ' ' Md»e 
 
 " John Smith.. 
 " Ji. FulkrtoH. 
 
 " Mdxe 
 
 " a. Fuller ton. 
 
 By .^fdKP. . . . 
 " Bank .' 
 
 Expriixe , 
 " B. Fullerton. 
 Mxi>e)uie 
 
 On. / To Bill, on hand. 
 
 Bank 
 
 Billtt Payable.. 
 Expense . . 
 Balance. ., 
 
 500 
 50 
 10 
 
 ft 
 
 1 
 
 10 
 
 C'OO 
 
 GO 
 
 1 
 
 3S4 
 
 i,6gJ 
 
 
 
 so 
 
 Merchandise. 
 
 ISSG 
 Sejit, 
 
 <><■(. 
 
 1 
 
 2 
 15 
 
 1\ 
 
 To Slock .... 
 
 " Cash 
 
 " Bi'UPayabl, 
 
 Lots and Qain 
 
 To Bal. asjirr In 
 
 By Cash 
 
 " B. Fullertun. 
 
 " J. Pace 
 
 '; Bills Ber 
 
 Sundries... 
 " BUls Bee. . .'. 
 " Bal. Jnv. . . 
 
 72 
 115 
 3.15 
 122 
 GIO 
 149 
 1.10 
 
 Tjiss 
 
 2i'i 
 SO 
 
 50 
 
IS- 
 
 IL 
 
 40 
 Dr. 
 
 UOOK-KKEHING. 
 
 Bills Receivable. 
 
 Or. 
 
 18S6 
 
 
 Sept. 
 
 8 
 
 «l 
 
 13 
 
 (• 
 
 18 
 
 • < 
 
 21 
 
 t( 
 
 JO 
 
 Oct. 
 
 1 
 
 1SS6 
 Sept. 
 
 Sfpt. 
 
 25 
 
 .10 
 
 To John Smith . . 
 " Mihe 
 
 i( (t 
 
 " J. Pace ...... 
 
 " Mdne 
 
 To Bat. from old 
 lljC 
 
 To Cash 
 
 To liitUimr . . . 
 
 
 
 
 1S86 
 
 
 i 
 
 JO 
 
 mo 
 
 S35 
 149 
 
 30 
 20 
 
 1 
 
 30 
 
 816 
 
 
 816 
 
 20 
 
 1 
 ! ■ 
 
 
 Hy Jfnlance. 
 
 Bills Payable. 
 
 
 
 
 1886 
 
 
 
 60 
 
 
 Sept. 
 
 15 
 
 1 
 
 60 
 
 — 
 
 
 
 
 m_- 
 
 — 
 
 
 
 
 !7 
 
 — 
 
 Sept. 
 
 i 
 
 27 
 
 27 
 
 
 
 
 
 
 Bank. 
 
 1886 
 
 Sept. 
 <t 
 
 Oct. 
 
 1886 
 
 Sr/,t. 
 
 To Cash 
 
 To Bal. from old 
 a/c 
 
 To Stock 
 
 
 
 
 1886 
 
 
 
 50 
 200 
 
 
 Sfi'l. 
 
 3!' 
 
 
 250 
 
 
 
 
 
 
 
 — 
 
 
 
 
 S50 
 
 
 
 
 John- Smith. 
 
 4" 
 
 1886 
 Sfpt. 
 
 By MiUe 
 
 By MdM 
 
 By Bal. from old 
 a/e 
 
 /Ii) Hiilitnri 
 
 L'tf Sti Hilr'lr.^ 
 
 816 
 
 SO 
 
 816 
 
 60 
 "60 
 
 27 
 
 ".50 
 
 S50 
 
 .'/'> 
 
 M> 
 
 .lKM.JBSjOl^a»'.' 
 
 • ir>M:ims.ii-jK 
 
Dr. 
 
 1S86 1 
 f!ept. 
 
 Oct. 
 
 BOOK-KEEPING. 
 
 R. Fullerton. 
 
 4\ To Mdjm 
 10 " Cw*h 
 
 Md»e. 
 
 To Bnl. from old 
 ajc 
 
 
 nr, 
 
 5 
 100 
 
 
 1S86 
 Sept. 
 
 17 
 20 
 ^0 
 
 
 i'JO 
 
 
 70 
 
 By Cadi .. 
 << •< 
 
 " Balance 
 
 J. Pace. 
 
 1SS6 
 Sept. 
 
 To M<he. 
 
 18S6 
 Sept. 
 
 0\ To Cash. 
 Ill " " 
 22 '• " 
 £8 •* " 
 
 ISS6 
 Sept. 
 
 To Mcpeiise. 
 " Stock... 
 
 
 S3o 
 
 1886 
 Sept. 
 
 ^nByldlsItec .... 
 
 I 
 
 Expense. 
 
 10 
 
 1 
 
 10 
 
 1 20 
 
 1886 
 
 Sept. 
 
 2.' \20 
 
 S(. 
 
 By Loss A- Oain. . 
 
 Loss and Gain 
 
 sss 
 
 s.r-, 
 
 =1-"= 
 
 es 
 
 so 
 
 JXS6 
 
 Sept. 
 
 •W 
 
 By McUe 
 
 176 r,o 
 
 17(1 
 
 6iJ 
 
4¥ 
 
 BOOK-KEEPING. 
 
 Dr. 
 
 w 
 
 12^ 
 
 ^^ 
 
 Balance. 
 
 Cr 
 
 ISSG 
 
 
 Sept. 
 
 30 
 
 it 
 
 i( 
 
 it 
 
 (< 
 
 l( 
 
 t ( 
 
 r© .\f<he 
 
 " Ccuih 
 
 " miU Rec. . . 
 
 " Bank 
 
 " Jf. Ful'-rtmi 
 
 180 
 
 S16 
 
 70 
 
 IMI 
 
 30 
 
 - 
 
 1886 
 Sept. 
 
 SO 
 
 " Stock 
 
 L 
 
 27 
 1,514 -50 
 
 IMl 
 
 10 
 
 6 
 
 7 
 8 
 9 
 
 10, 
 11, 
 
 ^^ 
 
 Oct. 
 
 t 
 
 
 w^ 
 
 K 
 
 f-- 
 
 (( 
 
 %, 
 
 u 
 
 • 
 
 <( 
 u 
 
 NoTR.— The student will notice that the closin" entrv of the I^.<i« on.l r-n!.. a„^ .i . u u 
 
 EXERCISE n. 
 
 1. Invested ia business, cash $150; gocxls in store, $100. 
 
 2. Bought for cash 12 bush. AVlieat at $1.10. 
 
 3. Sold John Smith, on account, 2 bbls Apples at $1.20. 
 
 4. Paid clerk's salary, $10. 
 Received from Jolin Smith $1.50, on account. 
 Deposited in Bank $30. 
 
 Bought, on my note at 60 days, 200 lbs. Sugar at 7c 
 Sold James Jones, on his note, 10 bush. Wheat at $1. 
 Paid for Coal for fuel, $2. 
 
 Bought of John Smith, on account, 100 lbs. Pork at 6c. 
 Withdrew $20 from Bank. 
 
 12. Paid rent, $5. Goods unsold worth $130. 
 (o) Make in proper form the Day Book entries. 
 (6) Transfer to the proper accounts in the Ledger, 
 (c) Make out the statements and close the Ledger. 
 {d) What are the different ways of finding the Net Worth? 
 
 EXERCISE ni. 
 
 1, 1886.— Invested in business cash $400 ; 150 lbs. tea at 45c. 
 
 2. Sold Henry Brown, on account, 20 lbs. tea at 50c. 
 4. Bought 12 bbls. Apples from L. McKay at $1.10.' Gave in pav 
 
 ment my note at 30 days. " 
 
 6. Deposited in J>ank $300. 
 8. Sold M. Nagle 3 bbls. apples at $1.20, on account. 
 
 11. Sold James Boss, for his note at 3 months, 8 bbls. apples at $1 20 
 
 12. Sold D. JVlcCown 1 bbl. apples at $1.20, and 50 lbs. tea at 60c. 
 
 13. Sold remainder of gooils on hand for $40 cash, 
 (a) Make the Day Book entries. * 
 (6) Post directly from the Day Book. 
 
 "^'W^i 
 
BOOK-KiSEPINQ. 
 
 43 
 
 w 
 
 (( 
 (( 
 
 (c) What appears on the Dr. .si(]e of Md«?P 't \t71.„4. xi. ^ » 
 does the difference shew ? ' '« or judse. ^ \Vhat on the Cr. ? Whut 
 
 r. , , BBCOED OP TRANSACTIONS -aiTT tr 
 
 Oct. 1, 1886.— f^'"de„f,V„„eV ,.^.,„ ^^ows. SET II 
 
 Cash, 82,500; jUrMonT "'"'"' ^"^^^""^ ''' ^^U-vs; 
 hdds'a note 4^ n/^f.'r^lJo^^'^^ ^ -«*- «^0; Jas. Jon., 
 
 4! SSt^in it^ SJE^'^'-' ^ '^'^'^ ^"g^'^ ^000 lb. net., at IC. 
 
 ' '■ "^^f^vir^ »:.'" '" ""^-^ '-' >- '^'»"». 2 M.^- Mow, 
 
 9. Sold R. Full,.,t,,n, on his noto •,(• -^n -7 < , 
 
 240 llxs., at 7r>J ■'* ^^ ^''^>''^' ^ «J"^«ts Y. H. Tea, 
 
 " 14 Snl.l T 1 > '\'*'"'''t'^^ Cash for private use i^lOO 
 
 1*. Wokl John Robinson .SO .r-.i • ai i 
 
 ;; 15. Paid Cash for Othee pr.'^^.tll^;^'' ^'^^'' ^*^'- '-'-- 
 " 8 wvi ,"^ '"^^*' ^•■"■"'' "^^""'^ J™p« ^vith cash ^fiO 
 
 « 91 i^^^^^iy;! f'-^'i" John Morrison on a<.ct cash -S^O 
 21. Prepaid my note favor of T Ar \.' * ^• 
 
 allowed,^ f2..^0. Said bJi"..?"'"* ^^'^^V''^^-'^" ' ^'-o""* 
 allowed' in niy ft^^p ttte " T ""''; f-^''""""' ^« J'-- 
 Interest a„d.iiis.oui:tt;t^f^.|^S)^7,^-f^ *« '»- 
 recount are .1 e«.et the ..ne, onl, tjtj^^::^^ 
 
 " ''• S^<s:'is5t^ir ' '^^^^^^^ ^^^^ -*•' -*fa -sh, ^ 
 
 Inccntorkg. Oct. soth. 
 Mdse — 20O Iha. Sugar at 10c. 
 
 36<) ]l>s. 'IVa at 70o, 
 
 46 gals. Molasses at 75c.. !!!!!!!'.*.! 
 
 (( 
 
 Total. 
 
 % '-'0 00 
 
 '2b-> 00 
 
 34 50 
 
 «306 60 
 
 Set II. IS to be worked out accoixling to the instruction, given for Set I 
 
 • * 
 
 I'. 
 
44 
 
 BOOK-KEEPING. 
 
 r 
 
 Allow 5 lines for the Mdse. Acct., 8 for the Cash A^ct,, 4 for the Bills 
 Reo. Acct., and 3 for each of the others. The following statement is to 
 be made and the Ledger closed as in Set I. 
 
 Combined Statement— Set II. 
 
 Accounts im Lrdqib. 
 
 Slorh 
 
 Cmh 
 
 Mt-rchandiHi' 
 
 Hillii Receivable 
 
 Bills Paj/aJtle {cloiied) 
 
 Thus. Brown 
 
 Jvliii Morrixon 
 
 Jiis. Jones 
 
 Bank 
 
 Jaa, Ross 
 
 Expense 
 
 Interest cfc Discount 
 
 Stocks n«t invn't. , , fS.SSO 
 
 " /o.'« 4-^ o'J 
 
 " worth 
 
 Dr. 
 
 2,sn 
 ci4 
 Sim 
 
 154 
 35 
 40 
 
 JO 
 600 
 
 70 
 
 4,681 
 
 Cr. 
 
 2,540 
 1,243 
 
 332 
 40 
 
 154 
 40 
 SO 
 
 200 
 100 
 
 Kesocrces. LiABamEN Txmbk. Gains. 
 
 TO 
 
 • 2,675 
 
 S06 
 
 220 
 
 15 
 
 10 
 
 10 
 
 300 
 
 4,681 
 
 50 
 
 100 
 
 €-,836 50 
 
 2,436\50\ 2,436 50. 
 
 70 
 
 70 
 
 24 
 
 i 70 
 
 50 
 
 CHAPTER III. 
 
 ,^y 
 
 BUSINESS POEMS. 
 
 In this chapter a number of business forms of a simple character are 
 given. The pupil will recjuire to become familiar with these, as it is 
 necessary for a person keeping a set of books to be able to write oft-hand 
 any invoices, bills, notes, ic, that may be required iu connection witli 
 i^ransactions. Besides this, the study of business forms gives the pupil 
 more definite ideas of the real nature of many of the transactions them 
 •elves than could otherwise be attained. 
 
 BUjLs and accounts. 
 
 A Bill is a detailed statement given by the seller to the buyer shewing 
 the quantity, quality and price of goods sold or services rendered. Tht; 
 date of the transaction and the names of the buyer and seller must also 
 appear on it 
 
 'mM^i..y:^}^M:^j^,:^^msx:^*^K;T.:w\ wmmim^^m m. 
 
BOOK-KKEPI\(;. 
 
 45 
 
 W he,, goods are bought on acc^it a bill'^of ther Ihoulrt^wLyH be taken. 
 
 EXERCISE L 
 
 of H^Mif;iT- ^" C-t-I «tore, Port Elgin. J. K. Lamont .uys 
 of H. Muir & Co on account, 20 yds. of Factory Cotton at lie • 12 v,fs 
 Cashmere at $1.10 ; 30 yds. Scotch Tweed at $1:20; 25 lbs. SuSar ut^g' • 
 lO^lbs. Black Tea at 75c.; 9 lbs. Japan Tea at 60c./7 lbs iava'coftl .b 
 
 (a) Make out the bill on the last day of Sept 
 (6) Receipt it in full on Oct. 1. 
 
 Mr. J. K. LAMOJ^T, 
 
 Port Eliln, Sept. SO, 1886. 
 Bought of H. MUIR ^ CO. 
 
 1886 \ 
 Sfpt. 
 
 IS 
 
 Oct. 
 
 To 20 yds. Factor;/ Cotton at 
 
 12 " Cashnifre. . . . " <• » 
 
 "SO " Scotch Tweed. ...'...' .' .' .'.'.'.," j 
 
 " 2't Ihx. Suiftir. . . . n 
 
 " JO " m'ack Tea.. .< 
 
 " 9 " JafHin " . .< 
 
 " 7 " Java Coffee .'.'.'.'.'.".■.■.■.■ •« 
 
 lieceived Payment, 
 
 H. MUIR d- CO., 
 
 * per L. N. 
 
 11 
 
 10 
 M 
 9 
 7o 
 60 
 40 
 
 2 
 IS 
 36 
 
 7 
 6 
 
 SO 
 20 
 
 25 
 60 
 40 
 SO 
 
 69 
 
 I., 
 
 
 EXERCISE XL 
 Oct 14, 1886. The Dry Goo,k Pakce, Kincardine Ont Peter Cam 
 eron buys of McGillivray & Kennedy, on account, 2o'y Print aJ So 
 40 yds. Mushn at 13c.; 25 yds. Flannel at 32c.: 4 SiVTies ut 50c • V 
 "o ?T^[««'?^ "-^ '*'- "^^^' 2A yds. Twee<I at'sSc" ' ^^"' " 
 
 RibbX'at ^S': 3r;dl 'i^Ti^Ztti'-''''-' ^ ^— ^^ '' y^^ 
 
 Oct. 23. Peter Cameron pays cash $10. 
 
 (a) Make out and render the bill at the end of the month. 
 
 (6) Render a statement of this on the last day of November. 
 
 ;>^^won.s. "To account rendered." or " To 'irrofit^l!!.?' K^L'^i^'^^Ta'^l^^il' h'^teS 
 
 i-^'^'^Z let^^^'^^N'? aVhU iS^ """""''>' '" "«■«=•> the ,ignatu« of H. Muir t Co. to «.ch 
 
46 
 
 liuoiv Ki;i:i'iN(;. 
 
 I' 
 
 J:;(,^j!*<-f 
 
 EXERCISEJ III. 
 
 Oct 4, 1886 The City Ec..l< S.o.o, AVinnipog, Mum. S. H. McMal.on 
 l^uys of Alex. M. Calder, <m uccui.t, 2 JiiKh Sc-Ikk.1 Algebm at TOe • . 
 Masons Grammar at 90c.; 2 Canif.lK.ir.s (^..-.-raphy at 75c • 1 H.niM-'s 
 Conic Sections at ^I'.GO; '-> Gage's Physics at ^^K.W. ^ ' 
 
 Oct 11, 1886 S. H. JIcMal.on buys of Alex. M. Calder 2 Hallair 
 Constitutional History of England at §1.75. 
 
 Oct. 2G. S. H. :McMahon pays, en account, cash $5. 
 
 Dec. G. S. H. McMahon pays cash iu full of account 
 
 (a) Render the bill Oct. 30. 
 
 (b) !?■ ider a statement Nov. 30. 
 
 (c) Receipt the statement Dec. 6. 
 
 INVOICES. 
 
 An Invoice is a detailerl description of gcKxls shipped or delivered 
 shewing the marks, quantities, and values of all packages, &c. An invoic.' 
 is sent by the seller to the buyer, and it should have in it the names o^ 
 these parties, as well as the date and place of s;de. 
 
 Tu ojirrTrr P ^^ Montreal, Jan. 1, 1887. 
 
 Messrs- SMITH ^ CO-, 
 
 Barrie, Ont. 
 
 Bought ofMUREAT.f FISHER. 
 
 Importtra and Wlwh '■■ Dealers in Groceries. 
 
 Forwarded by G. T. B. a- » » ^ 
 
 , Terms— Note at 4 nios. 
 
 Hatjs Coffee, Java, 
 
 ~'JI-4, 222-4, 239-5, 
 S2H-5, »9« 
 
 Bhls. Sitffar, Granulated, 
 
 ;^(12-2J, ^'93-23, ii73-22. 
 
 Cartage. 
 
 87 
 
 880 
 761 
 
 0.22 
 
 0.09i 
 
 193 
 70 
 
 2G4 
 
 60 
 
 39 
 
 26 
 
 24 
 
 RECEIPTS. 
 
 A Eeceipt is a written acknowledgment of having received monev 
 other value. ^ 
 
 Wh«n a person pay* v<Uue whi«h hM tMR cliarr»a he should Uk» a receipt for It 
 
 01 
 
BOOK Ki;i;fl.\<; 
 
 47 
 
 {Reoeipt in Full of Account.) 
 
 T, . J- -VT . . Toronto, J UiV 1, 1886. 
 
 Received from N. h. McKinnon Fifteen Dollars in full of account. 
 
 ii A. LANGDOX. 
 (Receipt/or Payment on Account.) 
 
 T.* . , . Toronto, July 1. 1886 
 
 Received from N. D. McKinnon Fifteen Dollar, on accountf 
 
 H. A. LAXGDaX. 
 {Receipt for Rent.) 
 
 T> . J - lORONTo, July 1, 1886 
 
 Keceived from L. Mason, One Hundred nnd Viff^ T^^^ii ■ 
 
 for rent of Stores Nos. 220 and 2->" We ?4 !!/ ^ "S.I'*^"'^"* 
 :?0, 1886. ^ ' "' Mua'-ter ending Jujie 
 
 ,., r, . ^' ^'^ST & CO. 
 
 {Agent's Receipt.) 
 
 r>* • , . , OsHAWA, May 29, 1886 
 
 Hu^rB^i'"'" ''""" ''°'^"' ^^'^ ^'^"'^'^ - ^"» -^ hi. account w'ith 
 
 JACOB K. RUSSELL, 
 
 {Receipt J'i.r Interest Due ) "*"' " 
 
 $70. ' 
 
 ■n . , » Clinton, July 1 ]88fi 
 
 Received from B. Keillor Seventy Dollars in full fnr nl » • 
 
 WILLIAM MILI^. 
 {Indorsement r- ^ 
 
 $30. ^ 
 
 TO . J Pembrokk, Oct. 1. 1886 
 
 Received on account of the within note Vhirty Dollars. 
 
 ,T> ■ ^ r. C. W. MILXE. 
 
 {Jieceipt for Borrowed Mynev.) 
 $300. „ ^ ' 
 
 Tj . J . ^ . Southampton, Jfay 1 188fi » 
 
 Received from C. A. Leeds Three Hundred Dollars. wh.V) T 
 pay on demand with interest from date. ^ ^^ ^ P''°""«« t*' 
 
 D. M. SIXCLAIR. 
 {Receipt for Note.) 
 $300, „ ' 
 
 D. McGILLIVRAY. 
 
 
48 
 
 IIOOK-KKEPINO. 
 
 
 
 Dollars. 
 
 DUE BILL. 
 A Dne Bill is alvritten acknowledgincnt of a debt 
 
 ( Xon-ncyotiabl«!. ) 
 
 *^^^- « OsHAWA, Dec. 10, 1886. 
 
 I)ue John S. Pace to be paid to hini.self only, on demand, One Hundn'«l 
 ollars. / 
 
 /»r • ,, , "A. TAyU>R. 
 
 {JVegotmO/e by Indorspntenf.) 
 
 ^^^^- (KsHAWA, Dec. 10, 1886. 
 
 Due John S. Pace, or order, on iemand, One Hundred Dollars. 
 
 If. A. TAYLOR. 
 
 ...'"'* i^* ".'" '^'■'*" '*'"*'* '' "•''' '" ** nsiroliable Iwcause ,1. S. Pare caii trantfpr it to a thlrrl n«rtv 
 II- H> ..OgOtlaWe Paper we mean all notes, due li «, c rafts, &c. which can lie liM^allv t»n.«Jr». 
 hUow„'"„'ar.'"" '° ''"'''""' "•" "»"'"»''■"•« the right to sue for ^ment «;h;%irof mr^Trl 
 
 OsHAWA, Deo. 10, 1886. 
 H. A. TAYLOR. 
 
 I. O. U. One Hundred Dollars 
 
 A fimple r. O. U., containing no promiae to pay, Is not negotiable. 
 
 CREDIT NOTES. 
 A Credit Note is an acknowledgment of the return of goods or of an 
 error in an Invoice. I form it is the .same as an Invoice, with the 
 exception that tiie words " (Credited by " must be -■ I instead of " Bought 
 
 ORDERS. 
 
 An Order is a writtc i request for the payment of money or tlie delivery 
 ol goods, on account of the person whose signature is attached to it. 
 
 f ''■^'^ {Non-^iegotiable.) 
 
 Gkimsby, June 25, 1886. 
 I'^srs. Carey & Co. please pay James Hutche.son only. One Hundred 
 and lorty Dollars ana charge to the account of 
 
 MULLOY & WILSON. 
 {Neyotiable by Indorsement.) 
 
 ^^^^- St. Cathakines, May 1, 1886. 
 
 Messrs. Tait & Co. please pay W. I^mb, or order, One Hundred Dollars 
 and charge to my account. 
 
 H. P. McLaren. 
 
 the'wk !;?^l'' *wh!^ \f '.?"''f.r **;' °^" f ''■^" »}""■* t" *""*''«' Pe""" he «""»* 8>gn his 
 ine bacK of it. When he doen this lie i» eaXH to indurat it. 
 
 name across 
 
 mmm 
 
BOOK-KKKPINO. jg 
 
 {Negotiable nnthoiit IndoraetMnt.) 
 Messrs. McKay & Co Montrka,, Oct. 1, 1886. 
 
 BaCERCISB IV. ^- "^ "AN KIN. 
 
 November 1, 1886. Bought of H. Muir & Co. 120 yds Tweed ut 90*5. 
 
 Noveml^r 4 Returned goods valued at $25 to A Allen and receiv«.l 
 a due bill for that amount in g(jods. ' received 
 
 (o) Write the or.ier on Thomas Craig. 
 
 f\ Z'^fu T^"l '■'''^'"^ ^'•"'" ^- ^«""«dy '^"J indorse it properly, 
 (c) Write the due bill received from A. Alien. ^ v- 3 
 
 PROMISSORY NOTES. 
 A PromIs8or7 Note is an unconditional promise in writinemade hv oni, 
 
 " Je r/cX" tte°£I^'^r *" '^^ " '^'"'«* '"' "»«*•'• '"'' 'he per«>„ in , ho« favor the promi* I. 
 
 Bfi/nisites of a Note. 
 
 (a) There must be a promlte in writing. 
 
 (b) The proiniae must be for the payment of vtoney. 
 ic) The gum of money must l)e iperljieil. 
 
 W) The sum specifled must he payahlc uucoiulUionaUy. 
 
 willt'p'ayabr o'J.TS,tS:j '*^'"*"' """' '•* ""« '" — " f>' "» thue for payment i. expre««J ■^ 
 
 (/) There must be a mluahle coruideration to support it 
 maSrity.'"'"' "^ ""^^ ''^ " P**""" "'P"''!* of becoming legally accountable for xkt payment of it a 
 
 (Non-negotiable.) 
 
 Clinton, April 10, 1886, 
 
 $400. 
 
 ». , , E. A. HODGSON. 
 
 and mus"t ,th"e°.?ft' bl'te^Jh e^^'Jletu'it^STS'i'u^'"^ '"^"''' " " * "-"^i-W. >™tr«»«t. 
 
M 
 
 BOUK-KKKHIMi. 
 
 4' 
 
 v.: 
 
 $2,000. 
 
 {SffjotSnUf l,;i liflorsi'mnil.) 
 
 Clinton, Miiy 24, 1884. 
 
 lousT TV'.':'! •■• ''•.'^"t^' \ P7"'i-' t« ,.,vy A. F..rrester, or ..rder, Two 
 
 Thousa. ' 1' . ' 1. i ilue received 
 
 E. A. HODGSON. 
 
 A tratiifei 
 the wordx "o- 
 
 T'' 
 
 tf A. Forr< i. - wi-i, - 
 It by niKninif '. > , ..in.. ;„■, 
 
 Theinnke-n , 
 default of pa 
 
 Wtien the p v ■■ ril 
 renderiiiit the no- |u\al.l. 
 •ml aa such 19 r< • | uwible • 
 
 an.fer t ,e tor^t;"„v note, It Ltiu, ,,», al.l.. to hln order, he .nu.t indof • 
 
 .'!/ liable, but ea. h iiidoraer Ih liable i,. iinrree<lini{ holders in 
 i«e.|i.ent indorstr i» „.„ lial,|e to a pri-r indorser 
 
 ^' ..n *o/m y^,/. holder. The payee thu, l,e.„me» the indorser 
 
 th.J'il:Kv.:;;n;dorie;b;-;;;;[:^:;-.:;ci:;:^t:;^;;,;;rlr "' ^^ .•■thei„dor«„,entM„/„„. „. 
 to ]l^t^:^: -: ;;:; e^!;?e;;::r-" '^r*;;:^,:;!:"^.;"i^-;i^;': '"••]^ '» a, o.. a„.o„„t of «..•■ or -. p., 
 
 Mfent to receive the n.ouey, un.i nm a ptc"a""r ot tV'note '' ^'"'' '"''"••""" '^"' '^- '" "'"''>' «'' 
 reeour- lun'e hir.".;':"" ""' """ "^ ""■"" """-" '''"'•^' '- •'".v-uent, he .hould write - Wlthof 
 
 An indorsement nmst comply with the following conditions : 
 
 or iut^oti^z:::::2^;':^^^:i':;i'ci! '* """'' '" ''■^ ""'""" *''"" <" •- -•" handwriting, 
 
 the^liyorSe"" """ "" '"''""*"-"' »' 'he entire note ; .-..., it n.ust transfer the whole an.ount payable to 
 Of ih^JL't?y tuth^rlz":!"" in,E7iiVir' "* ""^^ "" "" °' "'™'' """^ '''^^ "« P^^ners. or one 
 
 (Nfyotiable inithont /ndornfjnent.) 
 
 $10. 
 
 Toronto, July 1, 1886. 
 
 W. McMANN. 
 U nre^Jk?,!"'*' " ""^' P^"'"^ '^ *«"•'' " •» "«8°"»hle without indorsement, delivery being all that 
 
 i"n !ii,irnVioun';l'i'i:^ """'^"'«'^^>- ^helh^ d!:^- ^Sar'e' ^^^rn^lri,^.."::;,';:^'''^^;!!:; 
 
 WTien the term of anotelsjflven Inn'""**-" ""'""J-- >r-„'h j .■ 
 
 ror a <Jeneieiir\ in the nunit)er of dav8 Ut~knv~,',t'^',th"~''m,Z u ■ Yil' ""^="'t. "r.a no alluname !» made 
 
 notes drawn at > months and iSarl'g , ite " )eo "« ftef^ ^'^ ^"r^T'^^' P"P*J- " '," '*^^*l!'* '°"' 
 due on the san.e day, viz.: March 3 of the next year.' ' respectively, will become 
 
 Th. day on which the note i. dated is not counted in computing the date of iU maturity. 
 
BOOK-KKKIMNO. 
 
 I^l'ni/nhl,' at linuk.) 
 
 PoHT KuJiv, April in, IMM.;. 
 
 61 
 
 140. 
 
 J. J S( 'OTT 
 
 prJ,!::;h^rXTr:rZr':'x^^^^^ "^^ .-"- the ti„,e .,,„.-^„. ,t „.,..; ,. 
 
 -.ouW be pre«.„.cU at the n.ak.r "pTe o. "u^i^UXat' Sri/i^ril"::' '" ''' " "" '''" ^' '^ »'--'• '" 
 indon^'^^r^'uKh' uirSlT'i.Ttin'.Ur "'"' "-^ """""'"' '*- »«'"" * »"• -"«ly araln.t .he 
 
 in eo^^.r *e of "jln'lirMLTrhl'rre™,!' 'd.:^''" °' ' "°" °' "'" ■«-•'•' »»>• >- to be ..„t.i„ed 
 
 hol.tI'or''hU r:;;r\:I,rtJl?vL"""" *" '""'* *"^'" ^""-*' •">"" <"■ 'he .I..- of i„ .naturit, to ,„e true 
 
 The per«>„ pa, in, a note ha, a ri«ht .o a re,,ipt. whioh i, ...ually written on the back „, the note. 
 
 {Xegotinble with Interent.) 
 ^j 200. IH'NDAS, May 1, \nm. 
 
 Tliirty days aftor date, I promise to pay J. T. Ross or bearPr 'l\v Ko 
 Hundred Dollars, .ith interest at eight \d ..nU Cllue rece^T 
 
 H. K. LAMOXT. 
 
 H pa,.l. Whet, it i, th4 inlentio,, to makeV.u"' i"ar a^n ". eH^»,™ ';"T' "' V" ''•'•'^'' ^'"^' "'"'I '« 
 aa btfore, «or,ls express,..^, t hin Hearl, »houl'l l.e '^."rte,/ '"* °' """*" ""'^' i.ialt.rity -^ wel 
 
 of t^'.:;^;r JiS^;:;^;:^ -,:ia: -loi: ^L^r .^/iriei^ ^i;i;;:'ir "'''^- "' «"" '■'« '^'^'^ 
 
 {Payable on Dernantl.) 
 3(200. ^"^^ ^ATHAKiNKs, IVfay 1, 1886. 
 
 D„Vw.?vT''re'iv^";'" '" ^"^ •'°"" '■■'"^'•' "- °"'" ■'•"- "■"■■'■«' 
 
 No days Of grace are allowed on demand notes. ^J- V'DOUGALL 
 
 {Joint Note.) 
 ^950_ ■VValkeuton, June 1, 1886. 
 
 Three months after date, we promise to pay S. L. Cameron, or order 
 ^ me Hundred and Fifty Dollars, value received. ' 
 
 BEXJAMIX LAWTOX. 
 A. S. AMOS. 
 
 promise' "*t"'L« f'o^;:°„°^^r^Sa%r,i'./^^ '"°'""* *° ^y " ""--«' »-«■. " w. 
 
 W payment U not made, the makers should be aued Jointly. 
 
 M 
 
 '/'I'll 
 
83 
 
 BOOK-KEEPIKG. 
 
 hM- 
 
 ..i . 4>*J' 
 
 J150. 
 
 {Joint emd Several Nota.) 
 
 Bra!«tford, May 3, 1886. 
 
 One year after date, we jointly and severally promise to pay Petei 
 Cooper, or order, One Hundred and Fifty Dollars, value receivedT 
 
 L. SMITH. 
 J. MACPHERSON. 
 
 follllrin'j"^r"^e1oint,^fl*^,'? r"^!^ '". '"e holder is concerned, the same as anyone of the 
 Ma^^e^n ' ^ ^ '""' "'• -^'""^Pherson. the note of L. Smith and the note of J. 
 
 ACCOMMODATION NOTES. 
 An Accommodation Note is one to which a person has put liis name as 
 indorser, without value passing, merely to accommodate some other party 
 by enabling him to get it discounted. 
 
 m.JJl* "°^;1^ IS"*® payable to the order of a certain pereon. who indorses it and irfves it back to the 
 re^L'bIe^r^ymen7to tt^h"off '''" "' '"*^""^ «'' " discounted, as both he and the indo,«er 
 
 CHATTEL NOTES. 
 A Chatt**! Note is a written promise to pay otherwise than in money 
 
 Southampton, Oct. 1, 1886. 
 
 Thirty days after date, I promise to pay ,T.is. Wilson One Hundred 
 Dollars worth of good timothy hay at eight dollars per ton, to be delivered 
 at Port Elgin, Ont. 
 
 A. H. ROBINSON. 
 CHECKS. 
 
 A Check is a written order on a bank, made by one having money 
 deposited therein, for the payment of a specified sum to a certain person 
 or t(j his order, or to bearer. 
 
 When a checlt is drawn jKiyable to tlie order of the person named in it he must Jndoree it before hi- 
 can transfer It. 
 
 A theclf should he presentefl for payment within i)anlcing hours not later than inie day after that 
 one on whiol. it is received. 
 
 In flllinjr a checlt the particulars should be entered first on the stub. 
 
 SI 00. 
 
 No. 
 
 Date 
 Favor of 
 
 188 
 
 No.. 
 
 Toronto,. 
 
 188... 
 
 THE BANK OF TORONTO 
 
 Pay to.. 
 
 % 
 
 .or Bearer, 
 Dollars. 
 
 •-Tffff 
 
 iki 
 
BOOK-KKSPIKO. 53 
 
 EXBBOIBBV. 
 
 Sept. 1, 1888. Bocudit of H. Oorbetb goods valned at $120. Gave in 
 payment my note at SOdays for $76, and an order on Henry Brown for 
 balance. Sold F. Cooper goods valued at $25.50. Received in payment 
 John Thompson's note at 2 months, dated Aug. 24, 1886. Face of note 
 §25.50. Bought of S. Jarrett 16 cords of Wo<S at $2 per cord, to be paid 
 in goods from store. He took goods valued at $10, and I gave him a duo 
 bill for the balance. 
 
 (a) Write the note given to H. Corbett and also the order. 
 
 (6) Write the note received from P. Cooper. 
 
 (c) Write the due bill given to S. Jarrettw 
 
 ((2) Define negotiable paper. What does it embrace) 
 
 EXERCISE VI. 
 
 Sr'jt. 2, 1886. Bought of A. McKay 300 bbls. Apples at $1.20; 40 
 bush. Wlieat at 70c. ; 120 bush. Oats at 30o. Gave in payment my cher'c 
 on the Molsons Bank for 8120 ; an order on J. Taylor for $100 ; H. Ken- 
 nedy's note in my favor, dated May 24th, 1886, and drawn at 5 mos. for 
 $70 ] and my u<yn note at 30 days, payable at the Molsons Bank, for the 
 balance. 
 
 (a) Write tUe invoice received from A. McKay. 
 
 (6) Write the check, the order, and the f wo notes given in pajmient for 
 the goods, the former being negotiable by inaorse:nent and the latter being 
 negotiable without indorsement. 
 
 (c) Find the date of maturity of each note. 
 
 EXERCISE VIL 
 
 1. Date of note, Jan. 4, 1886. Time to nin, 8 mos. 
 
 2. Date of note, Feb. 28, 1886. Time to run, 3 mos. 
 
 3. Date of note, Mar. 1, 1886. Time to run, 3 mos. 
 
 4. Date of note, Mar. 31, 1886. Time to run, 3 mos. 
 6. Date of note. Mar. 30, 1886. Time to run, 3 mos. 
 
 6. Date of note, April 30, 1886. Time to run, 4 mos. 
 
 7. Date of note. May 1, 1886. Time to run, 4 mos. 
 
 8. Date of note, Oct. 20, 1886. Time to run, 30 days. 
 
 9. Date of note, July 15, 1887. Timo to run, 90 days. 
 10. Date of note, Oct 13, 1887. Time to run, 60 days. 
 
 (a) £^ind the date of maturity of each of the foregoing notes. 
 
 (b) ISxplain why it is that ihere are four daj^ between the dates ot 
 maturity in (2) and (3). 
 
 (c) Why is it important to know esaotfy tbe day oa whidi a note be- 
 comes duel Eiq)lftin hJiy. 
 
 
54 
 
 BUOK-KKKPlNa. 
 
 CHAPTER IV. 
 
 ^H' 
 
 
 1 
 
 ^^^^H-.-> 
 
 2 
 
 ^^■'': 
 
 3 
 
 ^H ' 
 
 4 
 
 ^H 
 
 5 
 
 ^H 
 
 6 
 
 ^H 
 
 7 
 
 ^H ' 
 
 8 
 
 ^Hl ' 
 
 9. 
 
 
 10 
 
 ^H 
 
 11. 
 
 ^■^ 
 
 
 ^^1 '■ 
 
 ■ 12 
 
 ^H 
 
 13 
 
 ^^■' ^ 
 
 14 
 
 ^H 
 
 15 
 
 ^^^B i 
 
 16 
 
 ^■'1 
 
 17 
 
 ■■l 1 
 
 18 
 
 ^^H' LiM*" 
 
 
 ^^Pf^Pf 
 
 19 
 
 m 
 
 ,*•»- 
 
 fr 
 
 20 
 21 
 22 
 
 
 — — 
 
 
 ^Hrr.t' 
 
 
 ^^B 
 
 23 
 
 ■ ' 
 
 24 
 
 ■ : 
 
 - '. .^' 
 
 25 
 
 Tliis chapter presents a numljer of sets for practice. In order to test 
 the pupil's knowledge of the preceding chapters, as well a.s to teach liim 
 self-reliance, he is required to work out each set for himself. The results 
 anil only such hints as experience has proved absolutely necessary are 
 given. 
 
 Two very important auxiliaries are introduced in connection with Set 
 IV., viz., the Cash Book and the Bill Book. 
 
 Set VI. illustrates the Day Book and Journal combined. 
 
 EXERCISE I. 
 Sold Peter Smith, on account, goo<ls 820. 
 Sold James Jones, for cash, g(xxis 840. 
 Sold Peter Cooper, on his note, goods $10. 
 Bought goofls for cash §20. 
 Bought goods, on account, from M. L. Hay, $!y. 
 Bought goods, on my note, from M. L. Hay, $5. 
 Paid M. L. Hay, on account, $5. 
 A. Mann paid me, on account, cash $6. 
 Peter Cooper paid his note with cash §10. 
 Gave my note for goods, $30. 
 A. H. Ha^' settled with me by giving me his note in full of account, 
 
 840. 
 Gave my note for $10 to John Jaraieson, on account. 
 Deposited in Bank cash $100. 
 Lent M. L. Hay 850. 
 M. L. Hay returned the money lent. 
 Peter Smith paid, on account, cash $10. 
 
 James Jones gave me Mdse. in payment of his account, $.30. 
 Sold Mdse. to H. Huston, $30. Received in payment cash $20, aid 
 
 his note for the balance $10. 
 Tjost cash from my pocket $5. 
 Bought a pair of gloves for cash $1. 
 Paid for advertising, cash $20, 
 Sold Mdse. to H. Huston and received in payment my own note which 
 
 he held, $70. 
 Paid ca-sh for a .■^uit of clothe-'', $20. 
 Gave my note for a suit of clothes, $20. 
 Sold 5 suits of clothes to J. Benson at $20. $100. 
 
 (a) Journalize the foregoing transactions. [This is intended as an oral 
 exercise to test the pupil's knowledge of the rules given.] 
 
BOOK-KBEPING. 
 
 M 
 
 8BT IIL-QBOC5BRY AND PROVISION BtTSINBSS. 
 
 f 
 
 Books VMd—Day Book and Ledger. 
 BBCORD OP TRANSACTIONS. 
 
 ( 
 
 r 
 
 ./ 
 
 ^' 
 
 Clintok, Sept 1, 1886.— Leased a store of H. R. Mann at, $1.5 per month 
 and commenced business investing cash .*340. 
 
 2. Bought of A. McHardy, on account, goods invoiced at §500. 
 
 Paid Cash for Fuel $5. 
 
 3. Sold A. H. McCorvie for cash 25 lbs. Tea at 50c. ; 1 lx.x Starch at 
 
 90c.; 3 boxes Blacking at 10c. Paid caish for Coal Oil $1.50. 
 6. Paid A McHardy cash, on account, 8-'500. 
 
 8. Sold C. Dingman 10 lbs Tea at (iOc; 25 ]bs. Coffee at 30c.; 35 lbs. 
 Sugar at 9c. ; 2 bbls. Flour at $:).50 p.-r 1)1.1. Received in payment 
 cash $10, the balance to remain on account, .$— . 
 10. Paid cash for Postage .«1.20; for Advertising $l..i0. 
 13. Received from C. Dingman cash, in full of account, $_. 
 15. «old out my stock of goods for cash $i95.35. Paid H. R. Mann half 
 a month's rent with cash $7.50. 
 
 (a) Make the Day Book entries. 
 
 (6) Transfer from the Day Rook to the Ledger. 
 
 CThe Journal is unnecessary as the transactions are cf a gimple cfaanoWM 
 
 (c) Take off a Trial Balance and make the BtatementSi 
 
 (rf) dose the accounts. 
 
 Result.— Net (Jain, .«20. Present W..rtl., 8360. Cash on Hand, $560. 
 
 SET IV.-EXPLANATIONS. 
 
 Two very important books are now brought before the notice of th«» 
 pupii for the first time. The Cash Book receives the entries of all cash 
 transactions, and the Bill Book the particulars of all notes, Ac, connected 
 with the business. The pupil will enter each transaction first into the 
 Day Book. He will then enter it into the Cash Book if it is a cash 
 transaction, and into the Bill Book if a note is involved. He will observe 
 that a transaction may affect both of these books, or only one of them. 
 As soon as the posting for October is completed a Trial Balance will be 
 takea off, and after the Ledger is found to be in equilibrium a statement 
 of Losses and Gains, and also a statement of Resources and Liabilities 
 will be made. The accounts showing losses and gains will tlien be closed 
 into the Loss and Gain account, which in its turn will be closed into 
 Stock, or the Proprietor's account. The investment for the second month 
 will be taken from the statement of resources and liabilities for the first 
 All the accounts in the Ledger for November wi'; be olond after tb« 
 proper statements are nutde* 
 
6% 
 
 BOOK-KEEPING. 
 
 SET IV.-PURNITURB BUSINESS. 
 (first month's transactions.) 
 
 Books used — Day Book, Journal, L/idyer, (J ash Bonk and Bill Book, the tin 
 
 latter being auxiliaries. 
 
 ■i' 
 
 t-'. 
 
 BBOOBO OP TBAN8ACTION& 
 
 Oct. 1, 1886. ( ^^^^J!^J \ has this day commenced the furniture busi- 
 ness, investing as follows : Cash, $1,200 ; Furniture on hand, $800. 
 J. Ross owes, oh account, Jk30 ; L. Mason has to his credit $40. 
 2. Bought of J. Richardson, on my note at 60 days, 2 doz. Bedsteads at 
 $3 each. 
 
 5. Sold J. Ross lV>p cash 2 Centre Tables at $15 : 5 French Bedsteads at 
 
 $20. 
 
 6. Bought of J. Richardson for cash 10 Arm Chairs at $5 : 6 Extension 
 
 Tables at $25. 
 
 7. Sold G. Johnson, on his note at 60 days, J doz. Kitchen Chairs at $6 
 
 per doz.; 1 Extension Table at $28 ; 1 Easy Chair at $7.60. 
 
 8. Deposited in the Merchant's Bank $1,000. 
 
 9. Bought from F. Hood 2 tons of Coal for fuel at $7. Gave in payment 
 
 my check. 
 11. Sold A. Hilker, on account, 5 carved Blk. Walnut Chairs at $6. 
 16. Paid clerk's salary with check $10. 
 19. Paid cash for Insurance $20. 
 
 -20. Sold N. McKinnon for cash 1 comer What-not, Blk. Walnut, at $10. 
 21. Sold G. McKay 1 Blk. Walnut Parlor Suite, $150. Received in pay. 
 ment his note at 30 days for $100 and cash for balance. 
 
 Cash Received' 
 
 1886 
 
 
 Oct. 
 
 1 
 
 <« 
 
 6 
 
 <( 
 
 90 
 
 ■'■ 
 
 it 
 
 l< 
 
 t7 
 
 «< 
 
 30 
 
 i^m 
 
 1 
 
 raie 
 
 A.nHkirW.'. 
 Mdm. 
 
 Invetlment. 
 
 Sold J. Bow 
 
 " N. McKinnon. 
 
 " O. McKay . . . 
 
 OnAeeoutU 
 
 SoldJ.Bruce 
 
 Ocuh on hand. 
 
 IfgOO 
 
 ISO 
 
 10 
 
 so 
 go 
 
 60 
 
 »47 
 
 ao 
 
 1,470 
 
 t,m 
 
 wmm^ 
 
BOOK-KEEPINO. 
 
 57 
 
 22. Bought Mdse,, as per Invoico, from W. Tinsdale, $300. Gave my 
 
 note at 2 months for $100, my check for $100, the balance to 
 remain on account. 
 
 23. Paid $2.20 for Postage and Stationery. 
 
 26. Sold J. Ross, on account, 2 Extension Tables at $30. 
 
 27. Received from A. Hilker, on account, cash $20. 
 
 29. Sold H. Calder, on account, 1 Parlor Suite, $60. 
 
 30. Sold for cash to J. Brvce 2 Extension Tables at $30. Paid clerk's 
 
 salary with check, $10. 
 
 Inventory. — Goods unsold valued at $883.. 50. 
 
 Result.— Net Loss, $6.20; Net Capital at the becinninc of November 
 $1,983.80. ^ " 
 
 
 SET IV.— CASH BOOK, 
 
 The Cash Book is kept for the purpose of reconling all Cash Tians. 
 actions. It is customary to enter the amounts received on the left hand 
 side, and the amounts paid out on the right hand side of the Cash Book. 
 In an extensive business this book should be balanced every night ; in a 
 limited business once a week may perhaps be enough. The amount ot 
 money on hand as shewn by the Cash Book should correspond to that 
 found by counting. A comparison can be made at any time without 
 Iwilancing the Cash Book formally. Should a diflFerence exist its cause 
 iiu-st be searched for as soon as possible, and the error corrected. When 
 the Cash Book is uswl as an auxiliary care must Ije taken lo see that it 
 i^Tees with the Cash Account in the Ledger when the posting is com- 
 pleted. 
 
 The names of the other accounts affected appear in the colunni after 
 that containing the date. The next column contains an explanation of 
 each traa8a<;tiou, as can be seen by referring to the form given. 
 
 
 isse 
 
 Ort. 
 
 s 
 
 19 
 
 Ca^h Paid Out. 
 
 M<h' I Ho't of J. Rirhardson 
 
 Aferrhn tits' Hank . . | I h'podtcd 
 
 £j;pense Inmirancr 
 
 Pontage nnd Stnlionrry. . . 
 Balance Cash on h^itd. ........... 
 
 S'K) 
 J, 000 
 
 20 
 
 20 
 
 
 
 ^p 
 
 ■TT! 
 
58 
 
 BOOK-KREPINQ. 
 
 bhiIj book. 
 
 The Bill Book is kept for the purpose of recording in a form convenient 
 for reference the particulars of written oliligations, which we receive from 
 others and which others receive from us. It is divided into two parts, 
 into one of which are entered all the JUlh Hecnvable and into the otlior 
 the Jiilla Pmjnble. This book is sometimes used as one of original entry 
 and sometimes as an auxiliary merely. In either case it must be in hiir 
 mony with the corresponding accounts in the Ledger. The simplest fonn 
 is here presented. The method of entering notes, <tc., in this book is so 
 plainly seen as to need but little explanation. 
 
 The particulars are to be entered in the Bill Book at the time the notes 
 are received or issue^l. This is very important, especially when this book 
 is one of original entry. 
 
 As our notes issued are not in our own possession wc must necess;iiily 
 refer to the Bill Book for tlio particulars of tlicm. 
 
 Wlien a note is paid, or otherwise disposed of, (lie last columns arc to 
 l)e filled as indicatetl ; and, as a sjife-guai-d, a red ink line is to be mled 
 through the figures expressing the amount. 
 
 Great care must be ta,ken in finding the date of maturity, as an. error in 
 this may be followed by serious consetpiences. 
 
 Bills 
 
 
 Wher 
 
 
 Payer 
 
 Indorser. 
 
 1^ 
 
 Where Payable. 
 
 Datk. 
 
 
 i 
 
 reoeivMl. 
 
 Year. 
 
 Month. 
 
 H 
 
 1 
 
 2 
 
 Oct. 
 
 21 
 
 G. Johnson .... 
 a. McKay 
 
 
 Mihe. 
 
 Merchant' Jik 
 «* 
 
 ISSG 
 
 Oct. 
 
 11 
 
 4 
 
 21 
 
 GO ih. 
 30 ih. 
 
 f»y^ 
 
 mmm 
 
 Bills 
 
 
 When 
 
 
 To whom given. 
 
 In whose favor. 
 
 1 
 
 1- ?' 
 
 Where Payable. 
 
 Datb. 
 
 
 »■ 
 
 i 
 
 given. 
 
 Year. 
 
 Month. 
 
 
 t 
 
 on. 
 
 il 
 
 ii 
 
 J. Richardson. . 
 W. Tintdale... 
 
 ./. Richardafni. . 
 W.Tinsdak.... 
 
 
 }ff)htnr>.t Rrtvl; 
 
 
 Ort. 
 
 22 
 
 CD ,h 
 2 »»>. 
 
 m^m^ 
 
 m^^mmm^^m 
 
BOOK-KEEI'ING. 
 
 59 
 
 REMARKS ON CLOSING. 
 The pupil will bear in mind that in actual busine.ss the Lodger slu.uld 
 \pest.deyery month to see NvheO.er it is in e.,uiiibrium or no^ ^Ilth S 
 tins involves consulorable work it i.s the best pl;m to adopt as it fte 
 s-vves tune and trouble. But it i.s only at certain times usually on fo 
 twice a year, that an inventory i.s tak-n, a.ul the accounts «hew'C ,1 I 
 and gains aro closed. The object of this is to i„il.« ^ **"''' "'«J"^^"« 
 with the dealer shew his true tinafcil tan.mi. whic^i: df" tl ,'' 
 cre.Iiti„g it .vith the Ket Gain or debiting it wFt'h t e N^t Lcl's. T " 
 difference between its .sides will then slfew the Present \\^h t 
 
 ihiyt;^';^::^::^'^ '--'- -^•-i".thr.s:it.i^.i: 
 Jtf™ti:^;t/i:;:s-i-^ 
 
 .■..■..«„«;«,,,,.« tl„.y are „,„„lly l-ft „,«.„. Jl„t „.|,„„ jt ';, de»i,S to 1" t 
 
 r I 
 
 Receivable. 
 
 
 
 
 
 WlIE!» DiK. 
 
 
 
 
 
 
 Year. 
 
 c 
 
 .a 
 
 (11 
 
 
 s- 
 
 n 
 
 >> 
 
 tt 
 
 S 
 
 II 
 
 c 
 
 
 ^ 
 
 
 S •< 
 
 Pi 
 
 ■-! 
 
 -T 
 
 -< 
 
 .^ 
 
 <* 
 
 issr, 
 
 
 
 
 
 
 
 
 
 5 
 
 JSSG 
 
 
 
 
 
 
 
 
 
 
 
 ■t 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amount. 
 
 ,>,V 
 
 When and how disi)osfd of. 
 
 l^dyable- 
 
 
 
 
 
 Whrx I)r«. 
 
 
 
 
 
 Vcar. 
 
 
 .3 
 
 c 
 
 d 
 
 5^ 
 
 L.* 
 
 S- 
 
 S 
 
 c 
 
 
 II 
 
 
 
 I'l 
 
 Ism 
 
 ISS6 
 
 
 
 
 
 
 
 4 
 
 Ainount. 
 
 I no 
 
 When ami how rwiecinciL 
 
 ! I 
 
 ; ^: 
 
 i 
 
 I 
 
 i 
 
60 
 
 liOOK-KEF.riNG. 
 
 T 
 
 "U 
 
 
 ^ i 
 
 nt 
 
 A' 
 
 SET IV.— ContlnuecL 
 (second month's business.) 
 BBOOBD OF TRANSACnONa 
 Nov. 1, i886. PupiVa investment shewn by Balance Sheet for October. 
 2. Bought from J. Richanlson Ikldse., as per invoice, $400. Gave in 
 payment my note at 60 days for $200, an order on H. CalJer for 
 $fiO, and my check on Merchants' Bank for balance. 
 5. Sold L. !Mason, on account, 1 Blk. Walnut Bookcase at $70. 
 (,!. Sold A. Hilker 1 Ejisy Chair at $10 ; 1 Sofa at $40 ; 1 Black Walnut 
 Hall Stand, $30. Received in payment his note at 15 days •fur 
 $;")0 and his chock for balance. 
 9. Cave W. Tinsdale my note at 10 days in full of account, $ — , 
 
 10. Paid cash for Postage and Stationery, $3. 
 
 11. Deposited in Merchants' Bank $200. 
 
 15. Received from J. Ross, on account, his note at 10 days for $60. 
 17. Received from A. Hilker his check in full of account, $ — . 
 19. Sold J. Bruce 2 Centre Tables at $30. Received in payment Ids note 
 at 2 months for $40 ; 'check for balance, $ — -. 
 
 23. Received from J. Ross, on account, cash, $20. 
 
 24. Bought a Stove for store, $25, with my note at 2 months. Received 
 
 cash from A. Hilk(>r for his note, as per B. B. 
 
 25. Bought from R. Henderson Mdse., as per Invoice, $150. Gave in 
 
 payment my check for $100 ; the balance to remain on account. 
 27. Paid clerk's salary with cash $20. Paid my note favor of W. 
 
 Tinsdale with check $ — . 
 30. Sold by auction entire stock of goods for cash $1,320; and Stove for 
 cash $20. Paid the auctioneer for his services cash $5. 
 Result.— Net Gain, $63.50; Net Capital at closing, $2,047.30. 
 The pupil will make out a statement of Losses and Gains, and also a 
 statement of Resources and Liabilities corresponding to those which fol- 
 low. These are nut to be copied, but to be taken from the pupil's ledger. 
 
 Set IV.— Statement of Losses and Gains. 
 
 {Taken from Lidger Nov. 30, 1SS6.) 
 
 
 Cr.—Proceedn, 91,530 00 
 
 Dr.— Cost 1,433 50 
 
 LOSSISS. 
 
 CAISS. 
 
 Mfhr 
 
 
 
 
 
 
 
 
 
 
 S6 50 
 
 Kvjyetue . . . 
 
 41 
 
 Dr.— Outlay $53 00 
 
 Cr. — Proc"'--!- f;o no 
 
 S3 
 63 
 
 60 
 
 
 
 
 
 
 
 Difference 
 
 
 
 AV/ Gain 
 
 
 
 
 
 
 96 
 
 50 
 
 96 
 
 50 
 
BOOK-KKBPUfG. 
 
 61 
 
 Set JV.— Statement of Resources and Liabilities, 
 
 {Taken from Ledger No f. ,10, ISSH.) 
 
 
 Dr.—AnumHt ree^d 
 
 t 
 
 RE80UKCES. 
 
 ^UABiLrriEM 
 
 Cash. 
 
 726 
 SSS 
 
 10 
 SO 
 
 SO 
 60 
 
 S97 
 
 50 
 2,047 
 
 
 tt 
 
 Cr. " paid out 
 
 
 
 
 
 Balance on hand 
 
 
 m's Bant. 
 
 Dr. — Amount defmdled 
 
 Cr. " vnthdrawH 
 
 
 
 Balance on drpottit 
 
 
 Bills Ree 
 
 Dr,—Oth<-rs' notes rec'tl 
 
 Cr. " " parted with.. 
 
 
 BUU Pay. 
 
 Balance on hand .... 
 
 Cr. — Our notes isnued 
 
 redeemed 
 
 
 /. Boss, 
 
 Notes ovtutandiiri 
 
 Dr. — Our ajc againxt him 
 
 Cr.—Hia ajc against its 
 
 
 *• 
 
 
 
 Balance in otir/aror. 
 
 
 L. Mason 
 
 Dr. — Our a/c against him 
 
 Cr.—His ajc against us 
 
 
 
 Balance in our favor 
 
 
 R. Henderson 
 
 Cr. — His ajc against us 
 
 NU Worth . 
 
 Net Ineestment 9t,9S3 SO 
 
 " Gain, asiter StaUmeiU 03 60 
 
 30 
 
 Proof.... ,...{ 
 
 ^,4H 
 
 SO 
 
 SO 
 
 \ 
 
 " Worth SM7 30 
 
 
 SET V.-DRY GOODS BUSINESS. 
 Books used — Day Book, Journal, Cash Book, BUI Book and Ledger. 
 
 Kincardine, July 1, 1886. Commenced business investing as follows: — 
 Goods on hand, $1,200. Cash in safe, ?.S0. Money deposited in 
 the Molsons Bank, $400. 
 2. Bought of Smith <k Sons goods invoiced at $360. Gave in payment a 
 check on the Molsons Bank for $300 and my note at 90 days for 
 balance % — . Paid cash far Postage 50c., an(i for Telegram 25c. 
 
62 
 
 BOOK-RRKPINU. 
 
 M3 
 
 14. 
 
 3. Sold |{. W. Wismor, «.ii ;u'ooiiiit, 20 vils. Ul.i.k Sal in at. $2; 40 y<U 
 Brussels ('ai|H-fc afc ^l.'iO; "i piv,,' Kid ()|..\fs a(, $].'>{); 3 yds. 
 ]{il»l«iii at 'Xif. 
 5. Paid ca^li for \\u'\, ?1.">..".0. lyiit .fas. Sinilli rash .*t)..'»0. 
 7. Sold A. C. Muur.. .lO yils. I'.lk. Cashincio at i»Or. ; 10 yds. Velvet iit 
 81.60 ; 20 yds. Caqu-t at 70c. KtHcivcd in i.ayiui'ii't, his cluH-k for 
 §47 and an oidi-r on A. McKay for l«ihince. 
 9. Paid cash for Posta^'o, ,S1.:}0. Paid S. Pn-id's written onlcr in grnxls, 
 §17.")0. llcccivcil from ]{. \V. "VV'isrncr, on account, his check on 
 the Molsuns I'.ank for S40. 
 10. Ileceived from Jas. Smith his not<» at 30 days in full of account |!C..50. 
 12. Paid cash for repairinj^ store, $3.C0. 
 
 Solil A. Cameron, on liis noto ut 10 days, 20 yds. (Jiiigham, 12.U'. ; 10 
 yds. Flannel at 30o.; 40* yds. Cotton' at 1 Ic; Thread, 12c.; Buttons, 
 10c. ll('ceived from S. Iteid cash in full t.-f account ^ — . 
 15. Sold A. McKay 120 yds. Sheeting at 12c.; l.j yds. Tweed at $1.50; 
 3 yds. Farmer's Satin at GOc; 12^ yds. Casslmere at .*1.10. de- 
 ceived in payment his check f(.r"$20, the Imlance to remain on 
 account, $ — . 
 ! 6. Received from II. W. Wismer, on acc«)unt, cash §30. Paid for Coal 
 
 Oil cash .f 1.20. 
 20. Received from A. McT'ay, on account, his che(;k for $15. 
 23. Sold Jas. Snuth, on account, 15 yils. Tweed at 90c.; 13 j'ds. Broad- 
 cloth at §2.60. 
 
 26. Deposited in the Molsons Bank cash $60. 
 
 27. Lent R. Rainer a §."> hill. 
 
 29. Recei\ed from R. W. Wisnier his note at 30 days for balance of 
 
 ai-count, § — . 
 31. Paid Clerk's salary with my check on the Molsons Bank, §30. 
 
 Inventories, July 31st. — Mdse., Coo<ls mi hand, §l,338.f<l ; Expens*-, 
 Fuel on hand, §5.50. 
 
 (ii) Make the proper Day Book, Casli Boftk and Bill Book entries as 
 they occur, writing all the business papeis recjuired. 
 
 (h) Transfer to the Journal and thence to the Ledger, indexing each 
 
 entry. 
 
 (c) Test the equilibrium of the L<;dger and then make the proper state- 
 ments. 
 
 ((/) Close the accounts in the Ledger. 
 
 Result. — Cash on hanil, §105.05. Cash in Bank, §130. Net Gain, 
 $20.3S. Present Net Capital, §],fi50.38. 
 
 SET VL— JOURNAL DAY BOOK. 
 
 Set YI. is intended to illustrate a somewhat practical methed of keeping 
 accounts. The pupil who has written carefully the previous sets ujid 
 
 r^^^mF 
 
 ^^^«i 
 
IIOOK-KKKPINn. 
 
 ti 
 
 maaterwl them will fiml but liOln difluulty in oomhining the Day Book 
 ami Journal. The Journal .utrtj is given first in order in plain writing of 
 niefliuni size. This is followed l»y n/nll. di'm-riptioa of the transaction in 
 as concise a fonn as |.os iWIe. The pupil will ob.ser\t) that tlie explanatory 
 wonls should he arranged in sueh a iiiiinn.r as to Imj readily tlistinguishe*! 
 from the other jwirt of the entry. To ett'eet this, they aio written in a 
 smaller nand and pl,u-ed at some distance to the right of the column for 
 the L«'dger Folio. (See the Form given on page 65.) 
 
 Tlie ndvrnbvges of this methoil o\.r that exemplitie«l by Set I. are .is 
 tollows : — 
 
 (1) Time and lal)or are sjived. 
 
 (2) The exfx^nditure for Ixniks is diminished. 
 
 That shewn on page 65 will l)o found sulfieient for illustration. 
 
 INVOICE BOOK. 
 
 The details of purchases should Ije entered into the Invoice Book. 
 There are different methods of de.iling with in\oiie- Some accountants 
 enter an abstract of each in thi book, and iilo tlie original invoices in such 
 a manner as to be convenient for refeience, (See instructions for filing 
 business papers, page 192.) Another plan is to pa.ste each in\ oice when it 
 is received into the Invoice B»M>k, inde.\iiig it.* When several are received 
 from one person or firm, it is well 'o put as many as po.ssible of them on 
 the same page in order, the first being at the toji, the next immediately 
 l)elow it, ic. The btnik should be made of str(Hig, light paper, and each 
 leaf of it should be wide enough to leave nM)m for a money column to the 
 right of the invoices into which to enter the amounts. 
 
 THE INVENTORY BOOK. 
 
 The Inventory Book is used for recoi-ding all values of property on 
 hand, of interest accrued, of rent j)aid beforehand or unpaid, of articles on 
 hand which were charged to the Expense Account, Ac; in short, all values 
 representing resources or liabilities in connection with loss and gain 
 accounts. 
 
 It is necessary in business to take at stated times, an account of all such 
 values, (fee, in order to adjust the gains ami losses properly. 
 
 The inventory of goods on liand is found by counting. ighing or 
 measuring the articles in the store, and attaching to them the amounts foi 
 which they could be bought at the time. In actual practice, however, it 
 is customary to take down the cost of any particular line and lo add or 
 subtract an estimated amount when necessary. 
 
 
 ■^^ 
 
 -1^^ 
 
 * If it \a likely that a lartje business will be done with a house, several consecutive {lageH iihould )>• 
 left blank for \\w invoices from it. This is especially imi>ortant when the purchaxes of merchandiM 
 are posted f rum this lKK>k. 
 
 vm 
 
44 
 
 BOOK-KKBPIKQ. 
 
 •J 
 
 SBT VI.-QRAIN BUSINESS. 
 
 Booh ttted—Jminuil J>ai/ H,M>k, C<ixh Hook, JWl H,mk and Udger. 
 
 Casti 
 Riuitli 
 
 WaST MONTH'S TBANSACTIONa 
 t^r.lXTON, Oct. 1, 1886. Coiiuiifn.rd husiru'ss invc>tinj< a8 follows 
 in safe, *L',000. (J.kkIh in .store, valued at $600. John 
 owes lue on account $40. 
 
 2. Solii L. Ar.ison, on liis note at 20 dayH, 34 bush. ^Vheat at T.'ic. Pai.i 
 Wish for Fuel, $10. JJought ot C. Kerr, on account, ||jtHMls invoice. 1 
 at $600. [As the invoict s are kept in a l)ook for the purpose or 
 properly filwl, ami may therefore \m referral to, it is not necessary 
 to give the items of purchase in the Dny Il<K)k.] 
 
 4. Sold John Janiieson, on account, 140 bush. iLirley at 50o, 
 
 f). Paid cash for St,itionery, $1.50. 
 
 6. Gave C. Kerr my note at 30 days in full of account. 
 
 7. Sold H. Smith, on his note at 30 days, 100 bush. MTieat at 70c.: '>C0 
 bush. Jiivrley at 50c. 
 
 Paid cash for C<ki1 Oil for use of Store, and for Lamps, $12.30. 
 
 Receivetl from John Jamieson on account, wisli, $30 : his note at one 
 month for the bilance, $ -. 
 
 Withdrew from the business cash $100. 
 
 Sold to H. \V. Peterie, for .ash, 100 bush. Wheat at 75c. 
 
 Paid Clerk's salary with cash, $20. 
 16. Bought of TT. Martiji. 80 bush. IJarley at 50c. Gave in payment John 
 
 Jamiesori s note for $ — . 
 18. Received friirii John Smith, on account, an onler on A- Baker for $10. 
 20. Sold M. Mulif'n, on his not*^ at 3 months, 80 bush. Iterley at 65c. 
 23. Prepaid my note in favor of C. Kerr. Face of note $600. Discount 
 off, $1.50. Proceeds paid with cash, $598..'j0. 
 
 [Debit Bills Payable ; credit Int. ii Dis. and Cash. Wliy ?] 
 
 25. Received c.ish in piiymeiit of L. Mason's note $ . 
 
 27. Received from John Smith, on account, cash $20. 
 30. Paid Clerk's salary with ca.sii $20. 
 
 InverUoriea, Oct. SO, ISSO. 
 
 M.lse. — Goods on hand jggi gQ 
 
 Expense.— Coal OIL ....,,.,. 6V 
 
 Result.— Net Gain, $10 ; Present Worth, $2,550. 
 
 9. 
 11. 
 
 12. 
 13. 
 14. 
 
BOOK-KCCriNU. 
 
 SET VI. -JOURNAL. DAY BOOK. 
 
 Clinton, Oct. 1, 18S0. Dr. 
 
 66 
 
 f'r. 
 
 ..-_ff"P.".>..r!».>J).?.*5.«)._ ht^ thU ihi„ ^.„„mn<rf,l t/ie 
 Grata JitonueMi vil/i the. foil, nfimj Jli ■^oiirfm :— 
 
 Sundries Dr 
 
 J'q (fUiiiV* luinie htrc) 
 
 tlfexU invfgfnl. 
 
 Cash 
 
 A » Jtrr C. It. 
 
 Mdse 
 
 Asprr In vent my. 
 
 John Smith, 
 
 B. Receivdble I)r 
 
 Expense 
 
 Mdse 
 
 Sold L. Mi'Mnn <),\ h'l ■ I'tit' ii.-i 11, , 
 Ji. B., .>(/ I>u-h. Wlifiti .11. .',>. 
 .^ . << 
 
 Dr . ~ .... 
 
 To C's/i 
 
 Paid for Fuel/or Sl<., >. 
 
 Dr 
 
 To C. Kerr 
 
 Bought on aje yinxls, an jtcr Jiivoice 
 
 No. 1. 
 
 4 
 
 John Jamicson Dr 
 
 7'o Mdse 
 
 Sold him on a/c, J.'/U l,ii.^h. Barln/ 
 at 6(>t\ 
 
 Expense 
 
 ■ o 
 Dr 
 
 C.Kerr 
 
 To Cmh 
 
 Paid for Stalioncry, 
 G 
 
 Dr 
 
 To B. Fay able ■ ■ 
 Gave on a/c, my note aaper B. B. 
 
 7 • . 
 
 B. Re-ceivable Dr • ■ . — 
 
 To Mdse 
 
 Sold H. Smith on his note as per B.B. 
 
 JiiO bush. Whi-at at 70c $ 70 
 
 aVO " Barky at 5Uc ISO 
 
 A mounts foneard 
 
 S.tHjtl 
 €00 
 
 40 
 
 i',t!',0 
 
 SO 
 
 JO 
 
 cm) 
 
 70 
 
 coo 
 
 piyy 
 
 4,U7 
 
 ot 
 
 10 
 
 VOi) 
 
 5G 
 
 600 
 
 £00 
 
 4.U7\ 
 
 I 
 
g6 BOOK-KEKPINt;. 
 
 SET VI. SECOND MONTH'S TRANSACTIONS. 
 Clinton, Nov. 2, 1886. Sold J. 'I'uiiil.ull 'JO hush. AVheafc at 72c.; 45 
 bush. Barley ut 51c.; 120 Iju.sh. Oats at 20c. Rpoeived in payment 
 his check on the bank of Montreal for $."?0, and cash for balance, $ — 
 
 3. Bought of A. Megraw gotnls invoiced at $.")40.20. Gave in payment 
 
 an order on J. Kniith for $10 ; M. INIuUen's note, dated Oct. 20, for 
 $44 ; my own note at 10 day.'* for $200, and cash for Iwlance, $ — . 
 Paid for Fuel, cash $5. Deposited in the Molsons Bank $1,000. 
 
 4. lleceivecl from A. Baker, on account, cash $10. Paid cash for Post 
 
 age, $1.10; Telegram, 2.")C. 
 
 5. Sold Bobert Keith, on his note at 3 months, 2~> bbls. Flour at $5.20; 
 
 40 bush. Wheat at 7'h: 
 
 6. Lent P. McCallum a $5 bill. Discounted Robert Keith's note, dated 
 
 Nov. 5, IBSfi, at the Molsons JJank. Face of note $160; Discount 
 $6. Proceeds dei)osited, 8ir)4. 
 9. lleceived cash for H. Smith's note for $200, whic-h I imme<liately 
 deposited in the Molsons Bank. 
 
 11. BoiKrlit of C. Kerr 300 bush. AVheat at 70c.; 500 bush. Barley at 50c. 
 
 Gave in payment my check. Sold A. Baker 200 bush. J>arley at 
 55c.; 100 bush. Wlieat at 72c.; 120 bu.sh. Oats at 23c. lieceived 
 in payment his note for $200, and his check for balance. 
 
 12. Prepaid iiiy note due 10th inst. Face of note $200. Discount off 
 
 50c. Proceeds paid Avith check. 
 
 13. Paid Clei-k's salary with cash $20; P. McCallum returned the money 
 
 which he borrowed, $5. 
 10. Paid cash for OtHce Furniture ^ , -. Sold P. McCallum, on account, 
 
 100 bush. Wheat at 73c. 
 17. Bought of H. Sorby, on my note at 4 mos., 250 bush. Oats at 25c. 
 
 Sold A. Baker, on account, 12 bush. Wheat at 72c. 
 
 19. lleceived from P. McC'allum, on account, cash $30. Sold A. Baker 
 
 20 bush. Barley at 54c. lleceived from him II. Holman's note, 
 dated Nov. 1, 1880, and drawn at 30 days, for $25. Settled with 
 A. Baker by giving him my check for balance due him, $ — . 
 
 20. Sold J. TurnbuU 25 bush. Peas at 60c. ; 40 bush. Wheat at 73c. 
 
 lleceived in payment an order on J. Craig, whiih by his request in 
 passed to his account. 
 23. lleceived fiom P. ]\rcCallum his check in full of account $— 
 25. Paid A. ]\I,illory for repairing Store, cash $5. 
 27. Sold D. (iibbings, on account, 25 bu.sh. Barley at 53c. 
 30. Withdrew from bank $100. 
 
 Paid rent for the three months ending Dec. 31st, with check, $75. 
 Invi-nturkt, Jiui\ 30th, ISSO. 
 
 Mdae. — Goods ou hand $1,435 01 
 
 Expense — Office Fumitiiri; 9 .50 
 
 Bent iiai.l boforcliiiiii 25 00 
 
 Result.— Net Loss. $25 ; Net Capitid. $2,525. 
 
BOOK KEEPING. 
 
 f.7 
 
 If the pui)il has done the procoth'rij,' Hci <-uiio(tly liis Loss ami CJain 
 .•iccouiit, and liis Balaiico accoiuit f-huuld tunvsixmd rc.-;].iili\i]y in the 
 tVillowiiig: — 
 
 Dr. 
 
 Nov. ':10 
 
 f LOMOH. 1 
 
 7(» Erjieiisfi . 
 
 Loss and Gain. 
 
 
 
 
 
 JSSC 
 
 f 
 
 
 ^'.9 
 
 .7,7 
 
 1 .V<;--. 
 
 JJis .... 
 
 ,■7 .;') ' 
 
 
 
 ;>.,' ^: 
 
 
 ( liaiM. ) 
 
 Cr. 
 
 :0 ByMiU: 
 ' StMk. 
 
 f!S 85 
 
 93 ,85 
 
 Dr. 
 
 Resources. ) 
 
 Balance. 
 
 issn I 
 
 .V«,(!. .,V; To M<hi\ i/iir.). 
 
 " Bx/M'iine {Inr. 
 
 " C«m//. 
 
 " Jiiiid: 
 
 " Jil/U ltr.\,l,l,. 
 
 " A. Cm;,,.... 
 
 " V. aiOi>u,<j.i. . 
 
 L'fi: 
 
 (II 
 
 J/, 
 
 .-() . 
 
 .?..'/ 
 
 no 
 
 5/.1 
 
 !'/ 
 
 4i 
 u 
 
 10 
 
 .'it 
 
 .'.7.S7 
 
 m 
 
 
 
 r:z: 
 
 (^ I.lablUtlM. ) 
 
 Cr. 
 
 18S0 
 Nin\ 
 
 .',< 1 
 
 lill nnU Pajiahle.. 
 
 " aiock 
 
 
 
 
 1 
 
 50 
 
 2535 
 
 
 25S7 
 
 50 
 
 .-.. 
 
 
 
 
 
 CHAPTER V. 
 
 4 
 
 DRAFTS. 
 
 A Draft is an unrnndidonal \\ri(t('ti oidt-r addrossed by one person to t 
 scfuiid itMiuesting tlin |iayiiiciit ot" a six'cilied sum of iixini-y (o a tliird. 
 
 The person wlio makes flic draft is teniu'd the Drnirn; th'^ person on 
 wliom it is <h;u\ u is termed the Dmtrcr, and the persou iu whose favor it 
 is drawn is termed the P ii/''i'. 
 
 AVhen a draft is made payahle to <lie Drawer lie is also the Payee. 
 
 Drafts are <lrawn payahle "on demand," "at sight," a spcciHod time 
 "after sight," or a specified time "after date." 
 
 Acceptance in its ordinary signification is an engagement on the l)art of 
 the drawee to pay the draft, when it falls due, in money. 
 
68 BOOK KEEPING. 
 
 tJiitil a draft is accepted tlio di-ii w(>o is not liahlo to tlio holder. 
 
 The drawee at'iepU the draft liy writiiiK a<:ro8s the face of it the word "accepted," followed by hig 
 signature. The drawee then liecomes the acceptor, and the draft lieconiea his accrplance. 
 
 In the case of drafts drawn at sitsht, or at a specified time after sight, the acceptor must (five the 
 date of acceptance. The acceptor may fix the place of i>aynient, but if he neglect to do this, the iiun ee 
 uiay ilo it. 
 
 ' A bill should lie presented for acceptance without delay. If it is honored the acceptor liet-oniei 
 liable ; if not, the prUr parties immediately become responsible for payment of it. 
 
 There are three kinds of acceptances : general, special and qaalifled. 
 
 When the drawee writes the word " accepted," tlie date, and his name 
 across the face of a draft, the acceptance is termed a general acceptance. 
 
 "When words are used which restrict to a certain place the payment of 
 the draft, the acceptance is said to te special. Qualified acceptances are 
 of two kinds, partial and conJitiojial . 
 
 When the drawee binds himself to pay only a portion of the amount of a draft or varies the time of 
 payment, the acceptance is said to be jiartial. 
 
 
 When payment of the hill by the acceptor is dependent on the fulfilment of a specified condition 
 the acceptance is said to be conditional. 
 
 No particular form of acceptance is necessary. Red ink is generally used. 
 
 If, upon pr-per presentment, the drawee refuses to honor the draft, it then becomes the duty of the 
 prior parties to it to nofiTi/ the drawer at on.e of such refusal. A bill must be treated as dishonored 
 by noniieceptancc if it is not accepted on the day of presentment, or within two days thereafter. 
 
 The drawer, when notified of the non-acceptance of the bill, should pay the holder the amount of its 
 face, und sui'h damages as are allowe<l by law. 
 
 When a bill is protesteil, notice of the same should be sent immediately to all the parties to it. 
 
 When a bill is )>ayab!e at siuht or at a fixed period after sight, the time begins to run from the d.ite 
 •f the a<ieptan<e. if the bill is accepted, and from the date of protest or noting, if the bill is protested 
 or note<l for non-acc^eplance or non-delivery. Days of grace are allowed on all bllU but those payable 
 on demand. 
 
 When a draft is accepted It becomes in effect the same as a promissory note, the aoceptor hearing 
 the same relation to a draft that the maker l)ears to a note. 
 
 If a draft is drawn payable to order, the payee must indorse it befors it can be transferred, just as 
 in the case of a note. 
 
 The provisions of the Act relating to Promissory Notes, as stated in (;;hap. III., are, with necrtsary 
 muliflcations, applicable to drafts or bills. 
 
{-._ 
 
 <h 
 
 .h 
 
 '^M 
 
 A x/' /. 
 
 IIUOK-KEKPING. 
 
 {Sight Draft.) 
 
 69 
 
 $100. 
 
 Clinton, Jan. 1, 1887. 
 
 At sight, pay to J. W. Chisholm, or order, One Huii(lre<i Dollars, value 
 iDceivetl, and charge to account/ of 
 
 To L. P. SMITH. """^"^ ^ ^^^^^^^^''- 
 
 Toronto. 
 
 (Time after Sight) 
 
 Clinton, Jan. 1, 1SS7. 
 $100. 
 
 At twenty days" siglif pay to the order of J. W. Chisholni One H.'.-i.Ired 
 Dollars, value receive.!, and charge to the account of 
 
 To L. P. SMITH. •"•^'^^^'^ '■• «^^^^^^^- 
 
 Toronto. 
 Form of acoeptwice of the foreKoinf; Draft ; 
 
 " Accepted, Jan. B. ISft?. 
 
 " L. P. Smith." 
 
 (Denutnd J)raft.) 
 
 Clinton, Jan. 12, 1886. 
 $100. -. ' 
 
 On demand, pay to the c)i-<ler of J. A\'. Cliibhului One Hundred Dollars 
 value receive<l, an<l charge to account of 
 
 To L. P. SMITH, '^^^^' '^- ^^^^^^^«- 
 
 Toronto. 
 
 {Time Draft.) 
 
 Clinton, August IG, 1886. 
 $230. ° 
 
 Sixty days after date, pay to A. H. Sniellie, or Or-rler, Two Hundred 
 
 and Thirty Dollars, value received, and charge to account of 
 
 ^ , „ MOSES L. BB.ICKER. 
 
 To L. P. SMITH, «xviv.xvo«. 
 
 Toronto. 
 
 Form of acceptance of Time Draft ! 
 
 " Accepted, 
 
 " /. P. SmUK- 
 
 Bank Drafts are extensively finptoycd for making remittances. 
 
 The amount ;huri,'.>.l l,y the hanlc for iasuii^if a (lr;ift is Imt a small fracUon of ite face value anu no 
 risk IS mcurred ni its transmission. '—w i«iv. i.v 
 
 RULES FOR JOURNALIZING DRAFTS. 
 
 When a person draws on us without giving us equal value at the tinit 
 w e make him l)r. 
 
 When we draw on a person and do not give him equal value at the time 
 wo make him Cr. 
 
 ''¥ 
 
 i. * 
 
 X'- 
 
70 
 
 ItOOK KKKI'INO. 
 
 In 
 
 DRAFT PAYABLE AT 8IQHT OR ON DEMAND.' 
 
 Drawer's Pnfvv f J'ayee Dr. 
 
 drawers entry. 
 
 I ^ V 
 
 Tu Drawee, 
 
 Drawer 
 
 Dr. 
 
 Drawee's entry . .. .{ 
 
 ^ \ To CWA.t 
 
 Payee's entry [ '^''** ^'^ 
 
 To Drawer 
 
 DRAFT PAYABLE AT A CERTAIN TIME AFTER 8IQHT. 
 
 D,\ 
 
 To Drawee. 
 
 Drawee's entry f ^^'''"'•'''* ^^''' 
 
 Drawer's entry [ ^'"'J"" 
 
 Payee's entry . 
 
 I To mV^ l'ay,if,le. 
 
 ( Jlills Jicceicdble Dr. 
 
 To Drawer. 
 RENEWING AND DISCOUNTING BILLS. 
 
 It occasionally occurs even in a well managed business, that a note is 
 about to fall due for the payment of which the dealer is not at the tinu' 
 prepjired. The proper course for him to take in such a case is t j ask for 
 a renewal for a long enough peiicxl to enable him to secure the necessary 
 means of payment. Of course, the ile.iler having asked for an extension 
 of time must pay interest, and any other charges that may be incurred. 
 The usual practice is to draw the new note {i.e., if tlie favor is granted) 
 for such an amount as will cover the face value of the note retir(>d, and 
 the interest on the siime for the time that the new note has to' run 
 together with all other charges that m.iy be connected with the renewal! 
 Sometimes only a partial renewal may be desired. 
 
 Again, a dealer may have a note outstanding which he wishes to pay 
 before it is due. In this case, discount will be allowed, and the dealer 
 will pay a sum which is less than he would have paid if he had waited till 
 the maturity of the note. Or, he may hold a note against another partv 
 and he may wish to get money for it before it is due. In tiie latter cist 
 j;i". will be obliged to take a smaller amount for it than if he had waited 
 ,;il' its maturity. 
 
 If a note bearing interest is negotiated, the value of the note when due is found, and the sum thus 
 t)uud 18 discounted to jrive the procee<l8. Bank discount is always used in l.usiness. Dava of irraeu 
 are adiiefl, except ir the case of paper payable on dcinaiid. " ' b^-'i^'- 
 
 The phrase " difcountiivt a nnfe" ia u«ed with different nieaninfrs. (1.) The sellint!- of anv note ii 
 my possession bcf<,.-e tt matures for a sum less than what it (alls for when due (•' ) The i.avin'ir of mv 
 note which another holds, before it falls du.'. witli a sum less than it calls for at niaturit'v In eit'tie. 
 case the amount thrown off is tenned the dhiimnt. 
 
 * When the Drawer makes a sisrht or diniand draft payable to himself, his iiifrv will be Push I)r 
 to Hmwee. Whin lie draws a. time draft in like iii:iniicr, his iiitrv will br Hilu litieivablc l»'r tu 
 Drawee. " > ■■ « 
 
 f If the Drawee paya the draft by issuing a check, he will creiiit the Bank instead of Caah, 
 
nOOK-KKEPINC. 
 
 71 
 
 ..uwllL"'l^ '■• *^'''"*'*^'^ **" "'^"''^ ^^'"^ f..ll..win« until the application of 
 rules alrea<ly given IS seen, and thorouffhlvunderstoorl: ^^ 
 
 TRANSACTIONS. 
 
 oughly understoorl ; 
 EXAMPLES. 
 
 JOURNAL. 
 
 1. Discounted at bank H. C. 
 Miinn'snote. Face, $100. Dis- 
 count allowed, $r). Proceeds 
 received in cash, $95. 
 
 2. Discounted at l)ank ]\I. 
 Taylor's note, due 7.'} days 
 lionce, at 6%. Fmco of ii,,ti., 
 ^2W. Proceeds «lcj)osi(cd. 
 
 3. ]>rew a draft on C. Cam- 
 eron at 10 days sight and ilis- 
 counted it at the bank at 8/. 
 Face, $.36.5. Discount allowed. 
 S — . Proceeds remitted to A. 
 Murray on acct. 
 
 4. Prepaid with cash my note 
 favor of Amos Diumniund. 
 Face, $40. Discount ort", ^-2. 
 
 5. Retired Jas. Stark's note 
 for renewal for 2 months. Face 
 of note, $1 50. Interest on same J 
 for 2 months at 6/. .?1.50. 
 Face of new note, $151.5( >. 
 
 6. Renewed my note favor < if 
 irorley <fe AVisme/-. Face, $i](). 
 (Jave a new note at 3 months 
 to cover the old note and in- 
 terest thereon at 87. 
 
 7. H. J. Manning has re- 
 newed his note. Face, $.350. 
 Received in parfc payment an 
 Older on G. AfcKay for §150 
 and a new note for $202. 
 
 8. G. Johnson has failed, 
 liaying 80c. in the dullar. lie 
 jays his note whi<h 1 h..ltl. 
 lace, $700. Proceeds iecei ved 
 ia cash. 
 
 (''/■•(ft J),. 
 
 Jiif. it* I)ii, " 
 
 To Bills JiiceiitMe 
 
 Ji'iiil- Jtf. 
 
 J II'. <t- J)i.i. .. ' ' ■ ' ' 
 
 To BilU Uio k-aliiL 
 
 A. Mvrrni/ /),■ 
 
 Jilt, dj IJis. 
 
 To C, C'aim.r'jii. , 
 
 Jiil/s Poijalile Dr 
 
 TnCil^l, 
 
 " lid. A IHs. 
 
 BiUa licccti-nhlp Dr. . . 
 
 To Bills Br,; i, •able '. 
 " IiU.iDu 
 
 BUhPaijahh Dr 
 
 Int. (t- Di^. " 
 
 To Bills rai/aiu. '. '. 
 
 (I. AfrKni/ /),• 
 
 BilU BtCiirahlc •' 
 
 Tn Bills l',n in,).},'. 
 
 " Jilt, if; JJi<i 
 
 ''«.s7/, /),. 
 
 /.iiM i(- (lain " 
 
 To I'lIU HtctiniNf . . 
 
 Jii.l 
 J 
 
 J,0 
 
 151 
 
 t:i) 
 1 
 
 ir.o 
 
 Jii.,' 
 
 -i;n 
 
 I'l" 
 
 KM) 
 
 .'50 
 
 ;ii: 
 (i.'j 
 
 i:,o 
 1 
 
 61 
 
 ^'i 
 
 ~ i 
 
 riH) 
 
 ^:r 
 
 
72 
 
 IIOOK-KEEriNii 
 
 I' 
 
 
 ^4 
 
 
 TRANSACTIONS. 
 
 BXAMPLBS. -(Continued.) 
 
 jnUKNAU 
 
 3= 
 
 9. As the indorser of H. 
 Stewart's note for $100, I pay 
 it and protest charges, $1.03, 
 with my check on the Mer- 
 tiiants' Bank. 
 
 10. Bought goods for $106 
 at a sale. Gave my note at 10 
 days in payment Before mov- 
 ing the goods I aeW. them for 
 $120, getting in payment my 
 own note and a sight draft oa. 
 A. Kean for $15. 
 
 H, Stewart 
 
 Dr. 
 
 \101 
 
 CaA, 
 
 To Merchants' Hank . 
 
 Dr 
 
 15 
 
 OS 
 
 101 
 
 15 
 
 OS 
 
 ESZBBCISB L 
 
 1. James Furrier, of Windsor, draws on H. A. Smith, of Montreal, for 
 
 $60 at 30 days. 
 
 2. H. A. Smith accepts Furrier's draft. 
 
 3. L. Mason give.s Feter McLaren, in payment for goods bought one month 
 
 ago, his note (negotiated by indorsement) at 3 months, for $500. 
 
 4. Mason prepays his note, being allowed a discount of $20. 
 
 T^. Miller & Co., St. Catharines, send W. Smith, of Pai-sley, an invoice of 
 goods amounting to $150, and draw on him at 10 days' sight. 
 
 (a) Give Furrier's Journal entry, and write the draft. 
 
 (6) Give H. A. Smith's Journal entry on accepting. Accept the draft 
 for .Smith. 
 
 (c) Write Peter McLaren's Journal entry on receiving the note. Make 
 the* uote and indorse it in blank. 
 
 {d) Give Mason's entry on prepaying it. 
 
 (e) Write the draft for No. 5. Accept it on ths 22nd day of September, 
 1886, making it payable at St. Catharines. 
 
 ( f) What is meant by negotiable pajyer ? Name the different kinds. 
 
 EXERCISE n. 
 
 1. Accepted S. W. Perry's draft for $12:?.75 at 10 days' sight, in favor of 
 
 J. F. Morrow, payable at the Molsons Bank. 
 
 2. Paid W. Martin in full of account, by giving him S. Furrier's note at 
 
 6 months, indorsed by H. Houston, for $750. Date of note, Marcli 
 .30, 1886. 
 
 3. Paid S. W. Perry's draft on nie with cash. 
 
 4. N. C. iMcPlieisoii it Co. failed, and made an assignment, their creditors 
 
 receiving <iO cents in the dollar. My claim was $250. Received 
 in settlement W, H, Muir'a acceptance, $150. 
 
BOOK-KXXPIVa 
 
 73 
 
 of SI I%t tS^^^j^^ ^' "^ --P* ^^ G- ^- J— 1 entries 
 (6) AVrite the note for No. 2. On what day will it faU due? 
 
 (c) Wliat are the Journal entries for Nos. 3 and 4 ? 
 
 (d) Define acceptance, promissory note, draft and order 
 
 th^lStila^' ^'"^"'"''^ *'^ '^''^^'""'^ '^'^^^ °^ indoi^ment. and stal. 
 (/) When is a bill or note negotiated without indoi^ment? 
 
 EXEBC3ISE IIL 
 
 2* Pai^r wt' ^"^^''',°" "77"> ™y 'i'-'^ft ^t 10 ^-^'H on L. Ma^n for $40. 
 J. i-aid Wmi. Jones' .si;;ht draft on nie for ^80 
 
 a Drew on .T..l,„ )!,„, „t ,igU for 8100 in favor of W,„. McKay wl,„ 
 
 ': ^llSMml'itTI'fJj™"™ "'" "' '' -^y-' •«'■'. f™ "f J-- 
 
 7. Prepaitl iny acceptance in favor of James McGillivray 
 
 *J. Clave my check for balance, .* 11 7 
 9. Drew a draft on R, T. To<ld in mv own favor for 830 
 diately discounted at the bank. Discount off SI 
 posited. * 
 
 8. Had AVnuGra/s acceptance for .«r.O .liscounted at the 1«ink 
 
 count allowcl $4. Proceeds depositc< I "e .Mnk. 
 
 10. Gave H. Leonard n.y .In.ft for ^2o, on Jas. Brown, ia payment f... 
 
 goods, which I immediately sold for §30 in cash. l^J'"'^"'^ 
 
 (a) Give iny Journal entries. 
 (6) Write the draft required for No. 5. 
 
 (c) Discuss the methods of treating No. 10. 
 
 (d) Make a list of the Ledger accounts affected by the foiciroinu. 
 arranging them into two classes. ^ luitfcouig, 
 
 BILLS OF EXCHANGE. 
 
 A BUI of Exchange is a written order fi(jm one i)oi-«,,n /fl.o r* \ . 
 
 another (the Drawee) directing him to pav .rtl.H ie^o Wt^'T''^ \" 
 or to his order, or to'bearer, a V-ticd sum ..f money ^ ^ ^ ^^^"'^' 
 
 BUU of Exchange are of two kinds, Domestic or Inland, and Foreign. 
 
 Dk count off 
 
 Had it imme- 
 Proceeds tlc- 
 
 Di. 
 
 M 
 
u 
 
 BOOK-KEEPINO. 
 
 An InliJid Bill of Exchange is one payable in the same country in which 
 it is made, and is usually called a drq/l. 
 
 A Foreign Bill of Exchange is one payable in a different country from 
 that in which it is made. 
 
 The Par of ExchangS between two oountrlo* Is the nominal value of the coinage of one conntry, 
 when exprt'Sgt.'U in Unas of the coinage of the other. 
 
 The Course of Exchange U variable and dppcnils chiefly on the balance of trade, tt liniplr 
 aieana the market value in one country of bills on another. 
 
 A Bill of Exchange is used for the payment of a debt due in anotJter 
 country witli'ut tlie traiisinissioii of specie, thus avoiding risk, loss of 
 interest and t r.msportation charges. 
 
 Foreign bilis are commonly ' vn in sets, three making a set or one 
 bill. These, ai-e forwartled a rent ti;nes, or by diilerent means of 
 
 transportation, so that one of tlieiii, at l.'.ist, may roach its destination as 
 b©on as possible. Whenever any one of them is paid the others are void. 
 
 Form of a Set of Exchamje, 
 
 Toronto, Sept. 30, 1886. 
 Exchange for £200. 
 
 Thirty days after sight of this first of Exchange (second and third of 
 same date and tenor unpaid) pay to Muir &. Co., or order, Two Hundred 
 Pounds, sterling, value received, and charge to the account of 
 
 Jt)HN JAMIESON, 
 
 r.) messkb. baring & CO-. 
 
 LondoiL 
 
 Toronto, Sept. 30, 1886 
 Exchange for £200. 
 
 Thirty days after sight of this second of Exchange (first and third f)f 
 sfune date and tenor unpaid) pay to Muir & Co., or order, T > Hundrcf! 
 Pounds, sterling, value received, and charge to the account rir 
 
 JOLN J • MIESON 
 
 To Messhs. baring & CO., 
 
 Londun. 
 
 Exchange for £200. 
 
 Toronto, Sept. 30, 1886 
 
 Thirty days after sight of this third of Exchange (first and secona 1 1 
 Biime date and tenor unpaid) pay to Muir tfe Co., or onlii, Two Iluudnd 
 Pt)unfls, sterling, value received, and ciiargo to the account of 
 
 JOHN JAMIESON. 
 T.) Messrs. BARING & CO , 
 
 London. 
 
 EXERCISE IV. 
 
 I. Accepteil H. McKay's draft at ?>0 days" sight, favor of Jiis. Clark, pay 
 able at the Molsoiis Bank, for .SI-")!! 
 
 SPW 
 
OOOK-KEKPIlfa 
 
 w 
 
 ^iZut^' fS^^ ** 30 days' sight, for $120. Had fl.e dn»ft, 
 d^counted at th., bank. Discount olF $l.r,0. \Vi(h prcx-ee«ls 1 
 bought a draft on the Molsons fiuik, Toronto (ExchanL'e V/) 
 ^^ Inch I rt-mittod to H. Cal.kT on account. ^ ''%«*/o->. 
 
 3. Discounted at tho Merchants' ]!u„k K McKiblwn's note, ,h>e 2 month- 
 
 hence Pace of note $40. Discount allowed $1. Proceeds re- 
 ceived in castl. "v^tr^ua re 
 
 4. Sold Jaines Jones g.KKls fmm .store value.1 at $7oO. Received in ,.av. 
 
 nienthis note at 6 months, which I discounted at the M.-n l.ani^ 
 Baiik at 6 /. Discount alJowcd .$_. Proc-ceds renuttcd to W 
 
 r. T? •:!"i 1" l?;V^r^n't'"fc of "ly noto due this day f.,r $1,000. 
 
 ... Remitted to A\ . Mu.r cash for balance of note (x\o. 4), and interest ,lue 
 f)n tlio s;uiie. Jnfcn'st$l.;!0 
 
 0. JJought W cash i^''rnmu\n-w linker hi. bill on Raring .t Co., London, 
 
 of 9 V'^'^'f-M^'t;'^'''''!''''-^ b,.ing at a V-vnuum 
 
 °* ^-i/o- [^^ '"'1 for ^1 costs $V' X '""i]. 
 
 '• "• ^f ^J'.t^'^t^.^^ ^■'"''"'' """'' ^"' "''^° """''"'^ ^ ^'^^''^ ^ valueless. Face 
 8. Paid with chck my note drawn in favor of W. Wentworth, whi.-h was 
 
 TnterLt $0 "''5 '''' "^ ""''' *^''^' ■^~^'''*^ *'''''''^"'' '^^-^^ ' ^ •''^>-^' 
 (a) Give my Journal entries. 
 (6) AVrite the draft for No. 1 properly accepted. 
 pr,Sst^d'f '' ""'"'* ^^ protesting a note ? Is it necessarj: to have a note 
 (d) Define Bill of Exchange 
 
 EXERCISE V. 
 
 1. Renewed our note, favor of Jas. B.mvn, due to^a,-. for $150. Cave 
 
 a new note at one month for $151. 
 
 N0T«.-The «1 which is axIcKd is one n.onth s interest on the oW note at 8" 
 
 2. Renewed our note, favor D Cameron, due this day, for $750. (Ja^e 
 
 3 7^ r'*"^ V%^^ ?'"'•"'''' ^"' •^^"^'^ »"'l ^"^h $;i50 f.ir balance. 
 
 J. Ketirwl J\r L. JMclvinnon's n..to duo this day for $J00 ; receive.I in 
 
 1 Ti r^TT',L'"'1^''^^^''=^>""^'""^'00-^0,an.l his check for $100 
 t. Ketired John Snnth's note due this day for $-250. Receiv.-.l in ..'.v 
 
 Sn'L'$ioa' ^ "'••"^'^^^'^'•^'^•'' -"1 ^- -«''t ^1-ft on !i;.: 
 
 5. Renewcl R Robb^ note due t.Mlay for one month. Face, $100 
 Interest received in cash, $1. .**"»'■ 
 
 '"^f^ -^ ' ^;J d^ys bearing niteivst at 6/. Face of note $43.40. 
 7. D..scountc<l H C. Masseys note at tho Rank 30 days before du« nt 
 8/„ .,^o. G;. •' 
 
 I! 
 
71 
 
 BOOK-EEePISa. 
 
 li ^ t 
 
 W 
 
 
 8. Prepaid with cash my note in faVDr of Jas. Junes 73 dajs oefore due. 
 
 Face of note $G0. Discount at 6/. 
 
 9. Prepaid with check my note for 875.20 in favor of N. Storey 10 days 
 
 before due. Piscourjt at 5%. 
 10. Sold S. W. llnrtt 30 bush, wheat at SI. lleeeive<l in payment Jlobert 
 
 Curry 'a acccptiince tlue one year hence for the amount. It bears 
 
 interest at 6/. 
 («) .Tournalize the foregoing. 
 
 (/.) Explain fully wh.it is meant by renewing a note. 
 ((•) AVhat are the dillerent s<miscs in which the wonl "discmnting" is usc<n 
 Id) Write the note for No. 6 and the draft properly accepted for No. 10. 
 
 SET Vn.— DRY GOODS BUSINESS. 
 
 Books tised—Jmimal, Ctmh Hook, liH Book, wnd Ledijer. 
 
 TRANSACTIONS. 
 
 December 1, 1SS6. 
 
 Comraencctl business, investing as follows ; 
 
 Resources— Cash on hand, $r)00. Goods on hand va' red at $800. W. 
 Stephen's note, dated Ni.v. 1, IHS^), at 70 days, bearing interest at 
 8/ • face of note, ^400 ; interest accruc<l, -S— • W. Milne's ac- 
 ceptance, dated Sept. 8, 1886, at -t nionUis ; face of acceptance, 
 $120. H. Foster owes me on account, $G5.50. Jas. Scott owes 
 me on account, §27. .30. 
 
 Liabilities -H. Gi>orge hcjlds a non-negotiable note against me, dated 
 Aug. 24, 1886, drawn at 4 months, for $60. I owe John Patterson 
 on account, $.36.90. 
 Paid for Postage and Statitmery $1.20. 
 
 2. Sold H. Purvis 3 pes. Linen, 50 yds. each, at 75c.; 16 yds. Scotch 
 Tweed, $1.50. Received in payment an onler on John Patterson 
 which is passed to his account at his request. Dejxjsited in Bank 
 of Montreal, cash, $400. Paid for Office Furniture Ciish, $15. 
 Cash Sides, $19.60. . . , 
 
 a Bou-'ht of H. H. Bunting, on my acceptjince at 10 ilays, an invoice cf 
 g(K»<ls amounting to $200. Paid for Insurance c<ish, $10. Paid 
 for Advcftising casli, $5. Cash siilcs, $20.2.5, 
 
 4 Sold M. McPiiei-son for his acceptance at 20 days, 150 yds. Bi-ooxlcloth 
 at .$2.40, 8—. Piiid for Repairing Store with check, $8.40. Cash 
 
 sales $31.. 50. . . *.aa r. 
 
 6 Bought of J. Young an invoice of goods amounting to f40U. Gave m 
 
 pavmei.t .-asii, $50 ; an order ».n IT. Foster for $65.50, and my 
 
 note at 3 months for balance, .* . Cash sales, $18.40. 
 y Sold J. McHardy for lus note at 15 days, 2 prs. Pants, ab f 7 j one 
 
 Overcoat, $15 j 50 yds. Flannel at 40c. Cash sales, $18.60. 
 
BOOK-KKgPISfl. 
 
 77 
 
 8. 
 9. 
 
 10. 
 11. 
 
 13. 
 
 14. 
 
 15. 
 
 16. 
 
 17. 
 
 18. 
 
 20. 
 
 21. 
 
 12. 
 
 23. 
 
 24. 
 27. 
 
 •-'8. 
 29. 
 
 Pre{Mii<l witli cliwk my note fiuur <>( \l. (teorgc as per B. IV ; ili^oount 
 JillowtMl, nOc. .fiis. Scott liHH tiul*'<|, i)iiyiri« 10«\ in ||i(> .lollar ; my 
 slian leceived in cush, § — . Cash hhU-.h, !|21.:iO. 
 Dwcountfd W. Stopheu'i* note an {ut K I'., at 6, ; pnKTfdsdoimsitwl, 
 I—. Pawl for Fuel, cimh, 820, and for Telfgiam, 50c. Cash 
 B-'iles, $20. 
 Lost a $2 l>ill. Upceivfd from John Pattorson his note at 2 inos ' 
 
 f u 11 of acct., $- : Cash sa h-s, * 1 CJA ). 
 Sold A.J. McKay on one month's credit, 25 yds. Scotch Tweed, ;:.'• 
 $1. Paid for Stove for store with check, $25. I'aid for Po^tji-i. 
 and Stationery with cash, $2.50. Cash wdes, $28.70. 
 . Sold H. P. Smitii for his check on Morons J lank, 3 doz. Fancy Tie.s, 
 at $4 i>. • doz. ; 4 doz. Liuea Collars, at $2.50 per doz., $ — . Cash 
 Sivles, $17.90. 
 , Pre.sente«l If. P. Smith's check for payment, but it was di.shonore*! 
 and returned to him. iJiscounted John Pattersrm's note, as per 
 B. B., at the bank; discount allowed 8'^ : proceeds deposited. 
 $— . Cash .s.iles, $23.80. 
 Ilecei\(d from A. J. McKay his check for $15 on acct. Cash s.iles, 
 
 $14.75. 
 H. P. Smith sent me his note at 10 days, in full of acct. Renewefl 
 my acceptance due this day favor of II. H. I'.untin;;; jrave a new 
 note at 2 nios. to cover face of acceptance and intejest at 8/ on 
 thes;.me. Cash sales, $21.20. 
 Sold A. J. McKay, 10 ready-made Overcoats at $12, $ — . Received 
 in payment a sight draft on W'm. Muir for $100 and cash for 
 balance. Cash SJiles, $24.30. 
 Bought of W. H. Sim.s, with my check, an invoice of goods amounting 
 
 to $500. Discount oflF, 5%. Cash .s.de.s, $39.96. 
 Discounted M. :McPherson'8 acceptance .-it the bank at 8%. Proceeds 
 received in cash, $— . Paid for Stationery, $1.50. ' Cash .sjiles, 
 $39.47. 
 Sold 1?. Holmes, on account, 13 yfls. Brown Beaver at $2. Paid If. 
 
 ISIurch for lefiains $G.40 Cas'h .sales, $]3.f)0. 
 Deposited in l)niik cash $300, Beceived from A. J. McKay his note 
 
 at 2 months in full of account, .* — . Cash .sales, $2 I 45. 
 Bought of M. Wistner, on account, goals invoiced at "^^-30 Caslt 
 
 sales, $22.60. 
 Paid for Fuel, ca.sh ft5. Ca.sh sales, $40.10. 
 
 Discounted at (> '] "NV. Jlihie's acceptance, as per B. B. Proceeds 
 remitted to M. "NVisuier, together with cash to close his accoiuit. 
 (Wismer allows 5% for proni{)t payment.) Ca.sh sales, $22. 
 Received ca.sh in full of J. McHardy's note, as per B. B. Cash sales 
 
 $35.50. 
 Sold at auction for cash goods to the amount of $300. Paid ihe auc- 
 tioneer with elieck. $5 
 
 * 
 
 1 
 
Miaocorv hesoiution tkt chart 
 
 (ANSI ond ISO TEST CHART No. 2) 
 
 ^ /•APPLIED IIVH GE 
 
 1653 Eosl Main Slretl 
 
 Rochester. Nea York U609 uSA 
 
 (716) *82 - 0300 - Phone 
 
 ("6) 288 - 5989 - Fo, 
 
78 BOOK KKKIMNC 
 
 30. Paid <l..rk's saliiry witli dieck, •■?=.•'.<*. Ca-li sales, ^tO. 
 
 31. H. P. Smith pail' his note witii liis i;hr<-k. ( 'a.sii sales, ft:»2.60. 
 
 fnri vliinrf!, Inl-rn I)ri-. .IIM. 
 
 Merchaiiilist; — ( Joixls remaining uusolil $55<) 00 
 
 Expense — Stove on iiand 20 00 
 
 Furniture H 00 
 
 Total ?584 00 
 
 •Rpsult— Net (Jain, i?74.10. 
 
 Niptk.— Tliu stuilent U expecte<l to write out all checks, drafts, notes, &a,a8 he wouM in arttial 
 
 \|I1S||II'8S. 
 
 SET Vn.— THE JOURNAL. 
 Tlie form of Journal used in connection with this set will be found very 
 practical. It has special columns, and by this means much time is saved 
 in posting. All anvjunts representing the cost of gixrls purcha.sed will b(* 
 entered in the column to the left hand side headed " Milse" The corres- 
 ponding column to the right hand side will receive all amounts of sales. 
 The sums in these columns will be p-osted in total at the end of the month 
 All tl'.e other amounts will be posted separately. When the items belong- 
 in" to any account are very numerous a spet ■ d column should be u-ed for 
 them. It is quite obvious that this metho<l can be advantageously em- 
 ployed for almost any kind of business. 
 
 THE CASH BOOK. 
 
 The Cash Book is used as a principal bc'<)k ; that is, the amounts which 
 
 appear in it are transferred directly to the l^edger. It has three column* 
 
 on each side. The one headed " Mdse." ov the Dr. si<le will receive all 
 
 amounts of cash sales, and the "Sundries" cclumn will receive all other 
 
 amounts of cash which come into the bu.siness. The footing of the "Mdse." 
 
 column will be posted to the credit side of the Mdse. account at the en<l of 
 
 each week;* the amounts in the (Dr.) Sundrie. lolumii will be po.sted 
 
 daily to the Cre<Ut side of the accounts producing .hem. The footing of 
 
 the "Mdse." column is carrietl to the "Sundries" column, and the total is 
 
 posted to the debit side of the Cash account. The "Expense" column 
 
 will receive nil amounts paid out for current expenses, and its footing foi 
 
 the week will be charged to the Expense account in the Ledger. All 
 
 other am()uut.s paid out will appear in the (Cr.) Sundries column, and will 
 
 bo placed on the debit side of their respective accounts The fcwting ot 
 
 the "Expense" column is carried to that having the heading "Sundries,*' 
 
 and the totixl plac mI to the credit of the Cash account. 
 
 , The Cash Book may be ieated every day, though not balanced in a 
 
 formal manner. • t t j 
 
 Althou<»h it is ctiatomary to keep a Cash account m the Ledger tne 
 pupil wilf see that such can shew nothing more than is shewn by the 
 Cash Book. This Book might, therefore, be regarded as th e Cash Account. 
 *nUa may be done Miiii-iuonthly, or monthly, it desired. 
 
BOOK-KEEPIKO. 
 
 7:> 
 
 JOURNAL— SET VEL 
 December 1, JSSCu 
 
 800 
 
 5S0 
 
 65 
 27 
 
 96 
 
 l!3 
 
 r,o 
 30 
 
 90 
 
 136 
 
 JO 
 
 360 
 
 300 
 
 1 
 
 1X08^83 
 
 JOOO 
 
 — — has Ihix Jay comirtf.nreil the Dry Gitoih 
 htmms^, investing the following Resources and 
 LiahUitieit : — 
 
 Sundries Tot •^"'•■'•i""?..^.) 
 
 Effects Invested: 
 
 Mdse. On hand. 
 
 Bills ItcG. Note aijainst W. Stephens 
 as per B. B. »'. Mitn.'s 
 acceptaiu-e as jirr B. B. . ... 
 
 Int. ^ Dis. Interest acmied on W, 
 Stephen's note ai per B. B.. 
 
 H. Foster He owes me on acct, 
 
 Jos. Scott " " '• 
 
 ( ..'^■p"'..!"^= »•"= ) To Sundries. 
 
 LiabilUies Assumed : 
 
 liiJls Payable. 
 Note favor H. Oeorge as 
 Jier B. B. 
 
 John Patterson. 
 I owe him on acct. 
 
 John Patterson To JiJdse. 
 
 Sold li. Purvis for his order on John 
 
 Patterson, — 
 
 3 pes. LiiK-n, riO yds each @ $ 7.1 
 
 16 yds. Scotch Tweed. . , . @ l.iiO 
 
 Mdse, To Bills Paijablc 
 
 Bot. gootlt as i>er invoice of H. //. 
 Bunting on my acceptance as per 
 B. B. 
 
 4 
 
 Bills Rec. To Md'^e. 
 
 SoUl M. 3fcPherson for his accept- 
 
 a«t'r UT jirr B. B., — . 
 
 130 yds. Broadcloth <&j 92..10 
 
 Amounts forward 
 
 ntrntL, 
 
 136 
 
 SGn 
 
 r.o 
 
 496 SO 
 
 ■nrouM 
 
 1413 
 
 60 
 
 36 
 
 Sec 
 
 43 
 
 90 
 
 171S\t3 
 
BOOK-KEEPINU. 
 
 Dr. 
 
 Cash. 
 
 1886 
 
 Dec. 
 
 CASH BOOS 
 
 { ' i''"'.."*??!.^ ). Investment 
 
 Md^e. ScUes this day . . 
 
 U 4t <• 
 
 M M U _ 
 
 Mdm, Or.— Saks far -oeei. . . 
 Oath Dr.—Reuiplsforweek 
 
 Bakmee 
 
 19 
 
 SO 
 
 SI 50 
 71 So 
 
 600 
 
 71 
 671 
 
 671 
 
 571 Sf, 
 ~Uo\t5 
 
 Bills 
 
 bujL book 
 
 
 When 
 
 Drawer or 
 
 
 Bec'd. 
 
 IndOTKr. 
 
 o 
 
 
 
 S5 
 
 
 
 / 
 
 Dee. 
 
 1 
 
 
 t^i 
 
 «t 
 
 <( 
 
 
 
 
 
 
 Drawee or 
 Maker. 
 
 IV. Stephen 
 »r. MUne 
 
 InWhoae 
 Favor. 
 
 Mpself 
 
 For What 
 Received. 
 
 Investment 
 
 Where 
 Payable. 
 
 Molsons Bk. 
 
 Date. 
 
 Nov. 1, '86 
 Sept. 8, '86 
 
 Time 
 
 to 
 
 Run. 
 
 70 tL 
 
 4 7tUI. 
 
 "r-ff 
 
 
 
 
 
 
 Bills 
 
 
 
 
 6 
 
 When 
 Given. 
 
 Drawer or 
 iDdorser. 
 
 Drawee or 
 Maker. 
 
 In Whose 
 Kavor. 
 
 For What 
 Given. 
 
 Where 
 * Payable. 
 
 Date. 
 
 to 
 Rui. 
 
 / 
 
 Ang. 
 
 U 
 
 
 Myodf 
 
 H.Oeorge 
 
 
 My Office 
 
 AU9.S4.'86 
 
 4 «• •< 
 
 • When there Is a large number of Bills Heceivable there should be a column for every dny In the 
 month inatead of one for every month in the year into which to enter the Hate of maturity of each mite 
 or drait All the notes, to., falling due during any particular month ihuuld be enterca on the mau 
 
-SET VIL 
 
 bOOk-KKEPlN<i. 
 
 Cash. 
 
 81 
 
 Cr. 
 
 18SG 
 
 Dec. 
 
 rxPRNHR. RCNDRim TOTAL 
 
 Exfyenne Jtationerii .(• I'(,-<tniir. . , J\S0 
 
 Hk. of Comnifrrt iJr/msiti'it 
 
 KxjifiiMf OJi''- J-'iiniiliin i /,•; 
 
 " /iiiiiifiiicf d- AilffrlUiiiij I J.'i 
 
 Exi^eUMC Dr.—Ontliiii far ejiienaex. ... 
 
 Ca«/j Cr. — Dish, for vik 
 lidlaiirr 
 
 3l:?0i 
 
 400 
 
 SI 
 
 4S1 
 
 431 
 
 140 
 
 571 
 
 SO 
 
 ir, 
 
 —SET VII.' 
 
 Receivable. 
 
 
 
 
 
 When Due. 
 
 
 
 
 
 
 Year 
 
 1 
 
 ii 
 
 ^Ill 
 
 ^ =. - - 
 
 < ai Z 
 
 k 
 
 1SS7 13 
 
 
 
 
 
 
 
 
 
 ! 
 
 
 ISS7 
 
 // 
 
 
 
 
 
 
 
 
 
 
 
 
 Interest. 
 
 Itu!" ' Sun 
 
 Payments. 
 
 .\niouiit' — - 
 
 Date. 
 
 .S'"/ 
 
 
 
 Ui) 
 
 
 
 Slim 
 
 M'hffi jiihI Ifnw 
 
 l>i.S|H>Sf<l iif. 
 
 Payable. 
 
 When Due. 
 
 Year 
 
 18SG 
 
 1 
 
 
 a 
 
 1 
 
 S' 
 
 9. 
 
 
 ■5 
 
 1 
 
 H. 
 
 1 
 
 >^. 
 
 "^ j 
 
 ^7 
 
 Interest. 
 
 .ute. Sum. 
 
 1 !'aynicnl». 
 
 •VniinMit. 
 
 When ami Mow 
 U.lired. 
 
 ! 
 
 l)al 
 
 
 .sun 
 
 '• i 
 
 
 (10 
 
 
 
 
 
 
 we or on consecutive pajres, the name of the month Iwing plaee<l at tlie top. In the column headed 
 No. the Jile ahould be indicated in small ti^'ures" or letters aboie the Hirurea expreminir the number 
 Ii" the note. « t • 
 
f^2 
 
 IIOOK KKKl'lNC, 
 
 r ' 
 
 Wii 
 
 I 
 
 t4 
 
 i 
 
 SET VIII. EXPLANATIONS. 
 Thn only now fciituro of lliis M-t is dm inl I'iMluctioii of llio Salos Book. 
 Tliis book Ix'iiig used, (ho S.ilcs coliiiim in \\w Jourii.il will 1m? (lisjxmspil 
 with, as all the ainouiits whicli wouM l>o jjlaccd in it will he fouml in the 
 Siiles ]{<M>k. The ainouiits lepresfiitiiiy the cost of g<MHls purchased may 
 l)c iransfeiTed dii-cetly fioni the Iiivoi(;e Ijuok to the Ledger, or a .foluiiiii 
 for such amounts may ho in the Journal. In either case the total for the 
 month should ho posted to the Dr. side of the ]Merchandise Account. The 
 Cash BiM)k will be the same us that of tlu preceding set. 
 
 SALES BOOK 
 
 All sales of merchandise are recorded in this bwjk. Wlien goods are 
 sold for which full payment in cash is made, it is not necessary to enter the 
 items in this book, as the amount can be earned directly to the " Mdse." 
 col iin on the Dr. side of the Cash Jiook. When i)art payment for gfHxis 
 sold is received in cash, although the items should be gi\fn in the Sales 
 liook, the amount of cash received shouhl not be extended into the money 
 column, out transferred to the "^Mdse." column of the C.i>h I>o(jk, only 
 the part paid otherwise than in cash being carried to the money column. 
 
 At the end uf the month the amount of the 3blse. column of the Cash 
 Book is transferred to the outside column of this book, the footing f)f 
 which v»'ill then shew the total sales. The total is posted to the Cr. side 
 oi the Merchandise Account in the Led , r. J>y examining the form given 
 the student will .see at once how to post the debits. 
 
 SET VUL— BOOT AND SHOE BUSINESS. 
 Books used. — Journal, Cash Book, Sales Book, Bill Book, and Ledger. 
 
 January 3, 1887. 
 
 Commenced this day the Boot and Shoe Business, investing cash $2,000. 
 Bought of Smith k Co., Toronto, go<jds invoiced at .f 1,200. Paid the 
 
 same with cash. Paid freight, !?l7.r)0; drayage, 50c.* 
 Employed A. Bolger as clerk at $30 per month. 
 Paid cash for Fuel, $10, and lor a set of books for store, $6. 
 
 January 4- 
 Deposited in the Bank of Commerce ca.sh $500. 
 
 Sold J McEachern 3 prs Men's Kip Boots at $4.50 ; 2 prs. Men's Gaiters 
 at $3 ; \ prs. Women's French Kid Button Boots at $4.50 ; 3 prs. 
 Women's Slippers at $1.20 ; 4 prs. Boys' Plain Ilubber Overshoes at 
 60c. lleceived in payment A. Tavlor's acceptance at G mos., dated 
 Sept. 1, 1886. 
 Cash sales. $25.30. 
 
 * All amounti paid (or freight and draya);e ou ^ooda purehaitd ihould be itntered on the Dr. lida 
 
 If tha d««l»r wiilies to know the amount bv p-rs for freight, for instance, during a term of WuBi- 
 n«M ha will op«n a Kreight aooouiit and ilebit it with all siim>! paid for the transportation of gooiita por- 
 chaaad. This a«ioounl uiuat b« uloacd into >!i1m. ao(>ount b«fer« tta« booka arc balaiiosd. 
 
1KK>K KEKPINO. 
 
 8.1 
 
 Jnnimrij it. 
 SoM William T^o^ls, oti fM-.oiinl, 2 pis. Mom's Fn^ncli Calf I5als. a(, fl 50 
 
 1 pr. Wonu-ii's I5iitf. Calf I '..Hits at ^2.70. 
 r.i.sfouiitr<l at hank A. Taylors aceq.tuufe at Cr.aud depusite*! tJie prot-e.Mls 
 Paid for Coiil Oil ^1.40. 
 Cash sales, $27,20. 
 
 January 6. 
 
 liought of Warner A- Sons, I^)iidon, an invoicH of j,'o<k1.s amount iiifj to 
 $200. C;a\.« in payment a draft on tlit; JJank of Comnit-n-.' tor that 
 amount, purchased with cash. [Hanks charge 1°/ for issuing (hafts 
 therefore a draft for §200 will cost §200.25.] Paid freight, ,«3.50. 
 
 Received from William Leeds, on account, cash ^o. 
 
 Cash .sales, $32.85. 
 
 Jamuiry 7. 
 Sold W. H. > artin 3 prs. Men's Imitation Sandals at 65c.; 4 prs. Women's 
 
 ButF Ba s. at $1.40; 5 prs. AV omens Felt Siippens at $1.20; 2 prs 
 
 Boy.s' 1 eavy B.K)ts at .«:2.50 ; 3 prs. Boys' Tie SIkh-s at $1.80. 
 
 Receive in p.ayment his sight draft on J. Slcjan for $10, aud his note 
 
 at 10 days for balance. 
 Paid for Postage and Stati(mery $2.30 with cash. 
 l5ought of A-Zarner & Sons, London, g(MKls invoiced at $14G. Accepted 
 
 their di ift at 30 days for that amount. 
 Cash sales, ^21.45. 
 
 January 8. 
 Sold K. MoiCendrick 3 prs. Children's P.utt. Bfwts at $1.10 : 4 prs. Mi.sses 
 
 Go.at laco Boots at $1.25; 2 prs. Women's P.)li.sh«.d Calf B.H)t.s at 
 
 $2..50. Receiveci in j)aynient an order on R. Mills for $10; the 
 
 balance to remain on account. 
 Received fioni AVm. Leeds his not« at 10 days in full of account, i5_. 
 N.ld Benjamin Hill, on account, 3 prs. Men's Stoga Boots at $1.80. 
 Paid for Advertising, $2.50 ; Telegram, 25c, 
 ( 'ush sales, $40.20. 
 
 January 10. 
 Horrowed from C. Cameron a $5 bill. 
 
 ^'repaid my acceptancf; favor Warner and Sons at 6 ' with my check. 
 Sold to .Tas. Mooney 43 prs. Men's -^alf Sewed l'..M)ts at $5 ; 50 prs. Woman's 
 
 Polished Calf Bix)ts at $2. Received in payment his note at lO days .»«— 
 Cash sales, $.39.50. - ' • 
 
 Discounted at bank W.ii Leed's note my favor. Discount allowed, 25 c. 
 
 Deposited the pnx-eeiis. 
 Paid C. Cameron the amount borrowed, $5. 
 
 January 11. 
 Deposited in the Bank of Commerce cash $200. 
 Cash sales, |50.70. 
 
 
84 
 
 BOUK KKKPINd. 
 
 r 
 
 r 
 
 % 
 
 Jnnnnrif IS. 
 ■Roughtof Kldcnfe Co., ILiiniltiin, ■,'ikmI.s iiivni<f(l ;it S.'inO. Acop|)t<*d then 
 
 • li-iift at, .'«) (lays' si;;ht f<.r .*I00. Piii.l fn'i;,'lit, .*."), witli .li.'ck 
 U. INIills pui<l the onh-r on Itiiii rtr.ivcd on tlio Mh inst. witli his check. 
 Cash sjiles, $29.60. 
 
 January 1-1. 
 
 Sol<i W. Manning 30 prs Men's ('alf Sewcl IJ<K»ts at ^.'i. lUn-eived in 
 
 jKiynient liis note at lO days. 
 Cash siil(vs, $10.70. 
 
 January L). 
 Sold H. Mills, on account, 2 prs. Men's Stoga Boots at $.1 ; 1 pr. Men- 
 French Calf Boots at .$4.50; .S prs. Misses Prunella Bals. at %\. 
 Paiil S. James for cleaning store, cash .S1.50. 
 Cash sales, $16.2.s. 
 
 January l-'t. 
 Paid clerk's half-month's sjdary with clunk, 81."). 
 Sold H. Jlughes 2.") prs. Women's ]iuff Bals. at $1..W; 50 prs. Mis.se, 
 
 Butt. Bals. at $1.20. Keceive<l in payment his sight draft oii Francis 
 
 Bawden, which is honored. 
 Cash sales, $47.50 
 
 January 17. 
 Sold Henry Brown 2 prs. ]\Ten's Carpet Slippers at $1.25; 4 prs, Boys' 
 
 Kip Boots at S-^J.SO ; 2 prs. Women's Pebbled Bals. at 81.30. Re 
 
 ceived in payment A. Embree's acceptance due March 4, 1887. 
 Lost from my pocket a 50c. piece. 
 
 Receivetl from R. Mills his note at 30 days in full of account, % — . 
 Cash sales, $28.80. 
 
 January JS. 
 Sold H. J. George, Dundas, 100 j>rs. .Men's French Calf Sewed Bcwts at 
 
 $5. Received in payment a draft on the Bank of Cimimerce for tli-- 
 
 amount, which I deposited. 
 Remitted Elder & Co. on account a bank draft for $100, which I pui- 
 
 chasefl with cash.* 
 Paid cash for Coivl Oil, $4 ; for \\'riting Desk, $20, 
 Cash ssiles, $35.20. 
 
 January 19. 
 Bought of Hurdon k Graham, Guelph, giKxls invoiced at $550. Discount 
 
 off 5%. Remitted them my note at 70 days, bearing interest at 
 
 5%, for $200, and my check for balance. 
 Cash sales, $24.35 
 
 January 20. 
 
 Prepaid my acceptance favor of Elder k Co. with check. Discount at o°'. 
 Cash sales, $37.60. 
 
 *A* « ruU, bulks charge 2So. for iaauinff draft* not exceadiDK •200. 
 
BOOK-KEEPING. 
 
 8ft 
 
 January 21, 
 Received cash for W, H. IMni-f in's note, S — . 
 Jfis. Mf)oney lias i^iipwimI liis note. Ijcccivp.l in vnrt payment cash $100. 
 
 and a new note at 30 dava for $215, beariiiir interest at 57. 
 Cash sales, $3G.40. 
 
 January 22. 
 
 Heceived fi-oni K. McKendrick cash ia full of account. Deixwited in 
 
 bank casli $330. 
 Cash sales, $48.75. 
 
 January 24- 
 Prepaid my note favor of Hurdun »t (Jialiam with check. Discount at 6;' 
 [When a note Ix'ars interest its amount ■when due ia discounted foi 
 the unexpired time.] 
 Cash sales, $25.20. 
 
 January 25. 
 P.ud Elder it Co. cash on account, $30. 
 Cash sales, $19,40. 
 
 January 2tt. 
 Sold R. Mills, on account, 1 pr. Men's St..<,'a Hoots at $3.^0; 3 pi-s- 
 Misses Polishe<l Calf lials. at $1.75; 1 pr. Glen's Plainliucklo Over, 
 shoes at $1.7."), $- . 
 Paid cash for Office Furniture, $14.50. 
 Cash sales, $23.30. 
 
 January 27. 
 Discounted A. Embree's acceptance. Face of acceptance, $ — . Discount 
 
 allowed, $0.35. Proceeds depositetl, $ — . 
 Cash sales, $15.40. 
 
 January ~ ?. 
 
 Gave Elder «fe Co. my note irmr^nnrith in full of account, $ — . 
 Cash sales, $21.96. 
 
 January 2'). 
 
 Sold H. Corbett, on account, 1 pr. ilen's Calf Sewed Boots at $4.60. 
 Cash sales, $31.20. 
 
 January SI. 
 Paid clerk's half month's salary with check, $15, 
 Sold by auction, goods for cash, $400 ; paid auctioneer $5. 
 
 Inventories. 
 
 Mdse. — Ooods on hand $206 87 
 
 Expense. — Writing Desk and otiicr orlice tunuture 31 
 
 Int. and Dis. — Interest accrued on ,l;us. McMiney's note .... 29 
 
 Result— Net Gain, $41.01 : Net Worth, $2,041.01. 
 
 X'' 
 
8« 
 
 BOOE-KRRPmo. 
 
 . i 
 
 t 
 
 BAIiBS BOOK— SET VUL 
 , January 4, 1S87. 
 
 V 
 
 J. McEachern. 
 
 3 prs. Men's Kip Boott Oi 9.}.. 'Hi 
 
 S " " llitilert " H 
 
 4 " Women's Fr. Kid BuU. iioolx " 4.',0 
 
 5 " " SlifijH'rs " i.:;i) 
 
 4 " Boy's Plain Huh. O. S " i.ii 
 
 Bi/ls Rec. -A. Taylor's aeeejtlanee at G mos 
 
 William Leech 
 
 S prs. Men's Freiirh Bnli . 
 1 pr. Women's BuU. Citlf. 
 
 . 7 
 
 («\ $/,.r,t> 
 
 W. II . Martin. 
 
 S prs. Men's Int. Sandal" (,i f (',.' 
 
 4 " Women's Biif Bau " t.40 
 
 6 " " Fe/t Slippers " l.^'O 
 
 5 " Boi/'s Ffeon/ I'o'iiM " z' ■')<> 
 
 S " '*" Tic Shoes " i.si) 
 
 SiijlU draft on J. Slmtn, ^10 
 
 Martin's note at 10 ds 
 
 S — 
 
 Cash-' 
 Bilh<t Rec. 
 
 K. McKendricli 
 
 S prs. Children's Butt. Boots (« 91.10 
 
 4 " Misses' Gout Lace Boo's " l.J', 
 
 2 " Women's Pol. Calf •< i'.SU 
 
 R. JUills- Order on him 
 
 Benjamin II ill 
 
 3 prs. Men's Stoga Boots (<ii9l.S0 
 
 10 
 
 James Moonsy. 
 
 43 prs. Men's Sewed RiMts (qj, $5 
 
 60 " Women's Poli-hed Otif fn, 3 
 
 Bills Rec yofe atlOd." 
 
 . 11 
 
 PF*. Manning. 
 
 so prs. Men's Culj Seiiai Boots (uj ^.7 
 
 Bills Rec. '"^ote at 10 d.< 
 
 in r.o 
 
 ih\ 
 
 4^ 
 
 It 7< 
 
 ill 
 
 I X, 
 
 ft Uil 
 
 3 .JO 
 
 13 
 
 10 
 
 10(1 
 
 r,i:, 
 
 l.-,o . 
 
 •Thib amount is not «xtemled to the niunv.v n.liunn, because it will be transferred to the (.'a.-.!i 
 Book, and tbenfor* find its way to the Ledger as |>art of the total sales for the month. 
 
•OOK-KEKiUNQ. 
 
 87 
 
 CHAPTER VL 
 
 SHIPMENTS AND CONSIGNMENTS. 
 
 It occasional lyh.ippons that, a ,l,.,,I.r l.as k-kxIs in his possosKinn for 
 whu-h he , ...not f,„.l n r...i.Iy .salo ut his pla.,- nf husinoss, hut f..r whi.h 
 .hero IS u fr.HKl ,„a.k..t s.m.h.wJuto vh,-. It %vill, in su.h a oas.. ..vi,|..„Hv 
 -.0 to his a.lva„tHg., to M-n.l Hh-s,. «.,.hIs wIht.. U..-v an, in .It-n.an.l, a„.l to 
 ini.loy a i..-rs.m .lumg husinrss th.-r,, to „«r.-f th.-n. for s.ih>. As su.h 
 ffH.U, thou^'h shipfH..!, are still u,rnr,l hy ,I„. ,...,„,„ ^.,,„ ,,.„t j,,,.„ j, -^ 
 ohvious that he ea^not treat the,,, as.,.n,,..,tv whi.h he has «o!<l. It is 
 therefore neees.s.i^v to use a speeiai ter,., U, ,vp,es..„t such. The repn- 
 Tployll Shipment" a,.d "Adventure" uro the uuc. cummonlj 
 
 SHIPMENTS. 
 
 Debit the Shipnient for the nihifl 
 of the pmperty represented, and for 
 all expenses. 
 
 ('n>dit the Shipment for the nrf 
 prorci'ds. 
 
 >J^.^\V^JI. '" "■'^"'" "" ""■ '"■• "'■'" "'*"•" ""'f ""■ "''■l'''^^' """^ "" 'h" Cr. gi,l, who,. th« Av,ou,it 
 
 The person s.Mi.lin- g.Knls to ho sold hy another for him is ternietl tl,.- 
 oiupper ur Consignor. 
 
 If the shipper wishes to elose his l«H.ks hefore an Acct. Sales is ren 
 ilei-ed, he will elose ''By l!,il. larmtonj," and carry tl,.; aiiioiint to the 
 l)i\ of JJalanco Acct. 
 
 If an Acct. Sales has heen i-e,ide,'cd, a, id if Ihe p,-oper ent, v on receipt 
 of it has been made, the Dr. side shews the cost and the Cr. si.ie the pro- 
 ceeds of the Shipment; consccjuently, the account will close into Zo.st and 
 (I'nin. 
 
 niffereiit Shii>inen»g are (listiiisniishfd niip fiojii .iiio'licr I,v n Wrins; tliiTi, a, il liv alt.i. Iiinc thp 
 niine of the Heller, or of hb plai'f of btisiin..H to .a, h. Tlie tliinl ^. |m.t;nt setit to W. MiisoB Montr-al 
 lor instance, might be styled " Shiiununt to Mason, No. 3." ' ' 
 
 Tlie person to whom th.e go<:da .tre •-..-nt f„r sale i.-- termefl the Agent 
 or Consignee. 
 
 When the Agent receives the goo<ls he takes them in charge, paying 
 freight, drayage, ike, if required. It may also be necessary for him to 
 
M 
 
 BODK-KEEPIXn. 
 
 Rt..r« tliom away for a timo, aii<l to ha e them innumi Although iY.f 
 figpiit limy do ftll this Jie iIh-h n -l Im'.-oii.o tlio oinwr ; ho niei-cly ftAsuin.- 
 tho iii.irmgi-ment of them until tlioy nr>^ sold, ur onlered by tho Consignor t-. 
 Im n- .slii|.jMMl. It will U^ ilmr, th.-n-foiv, to tho xtudent who underHtaiid> 
 what tho Md.st', Acct. n'pivst'nts, that it will l)o n.-o.-Hsjuy to oin-n n 
 w'IMirate acc(junt to rt-pii-.-itnit i)roi)erty to Ik) «oI(i on tho account und risk 
 tt anoth.'r. The heading usually employwl is "Consignment." 
 
 CONSIGNMENTS. 
 
 Crj^lit tho Comu^mueut for the 
 proceedt (jf aalet. 
 
 Debit tlip Consignniont for all 
 values jmid on account of it, for tho 
 amount of cmnmitgi n on the Kales, 
 and for tho net jrroceeda duo the 
 shipper. 
 
 If the Shipper ih not paid when the Acct. Sales i*k rendentl his p««rsonal 
 account must Iw cmlited ; but if pai<l, tlie account or accounts representing 
 whatever is remittal must bo ore<lited. 
 
 When a large commission business is carrie<l on there will likely be a 
 tmmber of consignments jmrthj disjK.sed of at the time of closing the 
 Le<lger. It would be improi)er to render an Acct. Sales of the gtwds sohl 
 unless such were called for, and, therefore, it would Ihj l>ettef not to debit 
 the corLsignment for the commissicm earned on the goorls parted with. But 
 this coramis.sion repre.sents value, and must \m taken into consi.leratiun. 
 The simplest and most logical method is to treat sucli consignments as 
 personal accounts, closing them as they stand into Balance. Enter the 
 commission on the sales effectetl in total on the Cr. side of the Commission 
 ac(-ount " By Bal. Jnx ri/," nv.A carry to the Dr. si.le of Balance. As 
 manifestly ought to bo the caJie, tnis amount is placed among th 'le- 
 sources, while the accounts representing the property partly sold »-o left 
 undisturbed. 
 
 When the new Commission account is opened, this l^ilance will be 
 brought down to the Dr. side of it. As the consignments are disj^sed of 
 the total commission arising from each is entered on the Cr. side of the 
 Commission Acct. The bringing down of the balance from the old account 
 will obviously prevent the counting twice of that part of the comniissioii 
 ; hat was before credited. 
 
 Hit is not important to know the exact gain or lo^i f..r the term of busjneas, the comminioni on 
 lonsignraenU partly disponed of may be disreifariicd at the time of closing. 
 
 nifferent ConsignmcnU »re distinguished from one another by numbering them and by makinir usf 
 Of the names of the Shippers. The -econ.! consignment received from WUlUm Wil»on. for Injtince, 
 might be styled, " Wilson's Consign; itnt. No. 2." 
 
 W. n. Smith, Guelph, Out., ships to W. Mason, Montreal, 40 bbls. Extr;. 
 Flour, at $4 per bbl., to be sold on the account and risk of the Shipper, 
 who pays f 10 shipping expen"-"" with cash. 
 
•OOK-KKKPINf]. A^ 
 
 On making the shipment, Smith wiH notul Ma«on a lett-r •Hri.Ina ).;-. 
 .£ the «am., and he will encW the invoice of the g,xis shlnli * "" 
 
 (Advice of ShiprHent tent by Smith. ^ 
 
 W. Ma80!», E8Q, ^""^••«' Oct. 1. \m. 
 
 Mdiitreal, Que. 
 
 Hoping lUt » p„fit.bl, „1. ^, u, olfctel .t ,„ «rfy ,,,.„, I „,„,,„ 
 
 Yours resi)octfully, 
 
 W. H. SMITH. 
 (Invoice enclosed.) 
 
 ^±^J'' *" "• ''^"^•"«' ^^t"u.real. to be .old an conunission.' 
 
 40 AW*. Ejctra Flour at 94 
 K. AO.R 
 
 Ouei,ji, Oct. 1, ism. 
 
 W. ft. flMTTTT. 
 
 CoiiiijHor. 
 
 160 
 
 liiii 
 
 (Mason's AcknowM,jmcnt on Receipt of the Consi.jnvuut.) 
 W. H. Smith, Esq., Montreai, Oct. 5, Is,s6. 
 
 Guclph, Ont. 
 
 As prices m good, I Jail p„, jj „„ „„ ,„„j„j im,„„|i,„„]y. 
 
 You IS truly, 
 
 W. MASOX. 
 Masoru on diKtw-jn"- f,f <?„. ,-,,r ; , > < m. 
 
i;"' 
 
 \li 
 
 fQ BOOK-KKEPINQ. 
 
 (The AccoulU Sales rendered by Mason.) 
 
 Accoiuit Sales of 40 hhU. Extra, Flour, received per G.T. R., 
 Oct. 5, 1880, from W. II. Smith, Guelph, Out., to be sold 
 on commissioJi. 
 
 ISSG 
 Oct. 
 
 on. 
 
 Sales. 
 
 Sold /or Cnxh, 
 
 40 bUs, Extra Flour, at 90 , 
 
 Charges. 
 
 Freight 
 
 Commintiion, 3% on tSdles ... 
 
 W. H. Smitli's net proceeds, pfaceil to his creilit 
 
 RdO.E. W. MA SOX, 
 
 Coniigiiii; 
 Montreal, Oct. Slh, JSSn. 
 
 .to 
 
 7 
 
 £40 
 
 20 J 
 
 so 
 
 EXAMPLES. 
 
 TRANSACTlONa 
 
 Jul liXAI- 
 
 1. Student shipped to Dick- 
 son for sale on commission 
 1200 bbls. Flour, wliich he 
 bought of Jus. Keene at .S-J per 
 bbl., giving in payment his own 
 note at 10 days for $1200, 
 Keene's note, then due, f..r 
 SIOOO, and a check on the 
 Molson's Bank for bahuue. 
 .Studentpaldshippingexpenses, 
 
 $.")0, with cash. 
 
 2. Dickson, on reciept of the 
 Flour, paid freight, $()0, witli 
 his sight dniCt on J. B. Wilson, 
 and drayage, $10, with his 
 check on ]NIerchants' Bank. 
 
 3. At the recjuest of Student 
 Dickson purchased 800 bbls. 
 Flour at $4.50, for which he 
 paid cash, and added the sjinie 
 to the consignment. He p.ii<l 
 freight, $2r>, and drayage, $5, 
 with his check on Merchants' 
 Hank. 
 
 (StuiU'iit'a entry.) 
 
 Shiji't to UklcKon l>r 
 
 T'j Mis PniH'ltle . . . 
 " Bills Jiereinih/r. 
 " Molsons Bank. . 
 •' Cash 
 
 (Dickson's entry.) 
 
 Stmkni's Consg't J)r 
 
 To J. B. Wilson .... 
 " Merchants' Bank 
 
 (Oiokson's entry.) 
 
 Sl-idrnl's Coiisi/'t Jh- 
 
 To Cash 
 
 " Merchants' Bank 
 
 nooo. 
 
 71) 
 
 3i:,V> 
 
 131 II I 
 1111)11 
 
 SSDII 
 
 ill) 
 
 I I 
 
 1<> 
 
 S6»ri ; 
 
TRAIfBACnOKS. 
 
 BOOK-KRKPINQ. 
 
 BZAMPLE&-<Contlna«(L) 
 
 01 
 
 JOOBKAU 
 
 4. Dickson sold tho whole 
 consignment (less 1 bbls. dam- 
 i^ged) to Roliert Fullerton at 
 •?•"). 50, and received in payment 
 liis own not« for $2000, then 
 due, on which there had ac 
 crued $150 interest; Puller- 
 ton's sight draft on John Camp- 
 bell for $1200, and a draft on 
 the Bank of Montreal for flic 
 balance. 
 
 5. Dickson charged 2c. i)Pi 
 hbl. for buying, 3c. per bbl. for 
 selling, $20 for storage, $15 for 
 e(Kmer!ige, $10 for insurance, 
 and rendiM-ed an Account Sales, 
 ri'inittiii- Fullerton's sight 
 'I raft as above, and a draft on 
 I lie Merchants' lik., purchased 
 with cash, to settle in full with 
 tlio shipper. 
 
 (Dickson's entry.) 
 Billn jHi liable £>r 
 
 Jul. «t JJU, "...'..'. 
 
 C'asli "... 
 
 To Student's Connf/t 
 
 SOOf) 
 
 j.:ii 
 
 87'Jii 
 
 (Dicksoiis entry.) 
 -Sliident'x Coiim;'1 J)r. . 
 J" f''>tiiin!s.ii(iii . 
 " iStortii/p. . , , . 
 " C'oo/Mrniie . . 
 " Jiimiraiire. . 
 " Caxh 
 
 (.Student's entry.) 
 
 Jilt. ,t- Dil. " ..' " 
 
 To S/iip't to Dicknim 
 
 JD'.I.',. 
 
 724o 
 
 7110 
 
 ■20 
 
 If, 
 
 1(1 
 
 71U 
 
 70 
 
 30 
 
 7I2S .in 
 
 EXERCISE 1. 
 ]. (^"':""'-'..^«'-) shipped to Smith for .s.ile on commission, M.lse. i.noicod 
 
 •1. Smith, on receiving the giKxl.s, paid $10 freight with cash 
 
 :•.. Smith sold the whole consigmncnt for $1,800, and i-eceived in pavment 
 
 a check on the JMolsons r.;ink. '■ ' 
 
 4. Smith charges 3/ com. for solli. ,., and renders an Acct. Sales nmuttin- 
 a check on tlie Bank of Cuininerce to cover net procc d.s.' "^ 
 
 {<t) Give student's Journal entries. 
 
 {!>) AVrito student's letter to Smith on making the shipment, 
 (c) Give Smith's Journal eiitries. 
 
 (</) Open Smith's Ledger. Shew how to clo.so the accts. 
 
 KXERCISE II. 
 
 1. (^!^;^:"^-) shipped to A. Megn.w, U, be sold on co.nnussinn o oon 
 
 bus h. l-.di W i„..it ...t ,v| i,..r l.u.h. raid siMj.,.ing e.K|^ns..sr.*lO 
 With Ins Note at fiOrlavs. ° ^ ' " 
 
 2. Mcgniw, on receiving the consignment, paid $10 for unloading with his 
 
 nota at 10 davs, and $15 for draya^re with ca.sh. 
 
 Ui 
 
tl 
 
 BOOK-KKEPINO 
 
 3. Megraw sold the con8iK.,n.enfc to F. Corbett for $2,600, ami reomvea ,n 
 
 ^yment his ow,. unie for 8200, A. Blue'. n..to for «300. an on .m- 
 Sn James Rn.wn f<.r $400, a check on the Merchants Bank for 
 S300. the balance to remain on account. _ 
 
 4. Megraw k-n.lerecl an Acct. Sales, charging 2% for commission, U for 
 
 insurance and $30 for storage, 
 (a) Give jtudent's Journal entries. 
 (A) Ikla^e out the Acct. Sales (4). 
 (c) Give Megraw's Journal. 
 {,[) Classify the accounts in Megraw's Ledger. 
 
 EZERCISB IIL 
 
 I Smith shipped to C*'""-!'"."-:) to be ««'1«^ "» '\'« f^^, Tw^'^ftSr 
 Shipper, 100 bl.ls. Extra Flour at $5 : 400 bush, tail Wheat at $1 , 
 and paid shipping expenses, $30, with his sight draft on t. 
 
 Dickson. ., . . ^.^ . , 
 
 -, /st.i<iCTtiN«hu-.\ j^n receipt of the consignment, paid treigfit, «i4U, wuii 
 ■■ ^ hisdniftat CO ilays on A. Ounpl)ell ; charges for unUKuling, SIH, 
 
 with his check on Bank of Commerce ; and drayage, $10, witli 
 
 his onlcr on Wm. Muir. 
 •{ /sKKieiif.NameA j,(,ld the Flour to James Johnson at $b.00 per bbl., ami 
 ■ ■ ^ received in payment a sight draft on H. A. May for $20 : a draft at 
 
 30 days on W. MUne for $20 ; and check on the Molsons Bank for 
 
 balance. _, ^„ , • j • 
 
 ^ /8tndenf.Nam..\ gojjj the Wheat to C. Kerr at 90c., and received in pay- 
 
 ■ ^ "menthis note for $30, cind a check on Bank of Commerce for balamc. 
 
 r, /stndcnftNan.c.\ charged 2i7 commission for selling, $15 for stonige, ami 
 
 " ^ rendered on Acct. Sales, remitting a BiU of Exchange bought at 
 
 1% premium with net proceeds. 
 
 (a) Give student's Journal entries. 
 
 (b) Give May's entry and also Milne's entry (3). 
 
 (c) Write all the student's correspondence with the Consignor in the 
 oilier of its occurrence. 
 
 {d) Give Smith's Journal 
 
 STSBBOISB IV. 
 
 1. Bought of B. Mills, on 3 months' credit, goods valued at $200. Paid 
 
 freight on the same in cash, $4. 
 
 2. Received Wm. Henderson's note at 3 months in payment of account, 
 
 $50. , .^. 
 
 3. Recei'-9d cash for the sale of J. Scott's goods, $40. 
 
 4. Discounted for H. Hill his note (No. 4) @ 4 months, for $500; Pis 
 
 count oflE; $10. Paid Net Proceeds ^ in goods from store and J ui 
 goods frcHn J. Scott's Consignment. 
 
BUOK-KKKPINn. 
 
 13 
 
 5. Oavo R. Mills our <-liork on tlin Molsons Rank for if 100. 
 
 f). Sliijipcl l.y Mm (!. T. 1{., l.y onl.t- iimi for ;irrf. of Taylor .t Co., an 
 
 lnvoi.(! of g<MK|s anio'iiitih.!,' to .*."')(). J'.ii.l fivi;,'lit on tin' sanm in 
 
 (•ash, $L'."). My connnission at, .'! is $15. 
 7. Ti<'rit .F. Sniidi <'!isli, ,*!r». 
 
 5. Fotincl ill till H counh ifcit .<5!10 Mil. 
 
 !). JSoughfc at an auction s.ilo JVLIsc. for casli, iftliOO. SoM it imnifili.idh 
 
 at an ailvancH of 5 n'ccivjng a <lic<k in jiaynH^iit. 
 10. Received cash, from J. Smith, $.">. (7). 
 
 («) (live tho Journal entries. 
 
 (ft) Writo tho conununicaticm to Taylor A- (^». in No. 6. 
 
 (>■) What is the object of kcei)ing a Freight Ac.'ount? How should it 
 close? 
 
 ('/) Does transaction No. G affect the Freight Account? Explain 
 fully. 
 
 EXERCISE V. 
 
 1. Received from Massey A- Co., for sjile on tlieir account, an invoice of 
 
 goods amounting to )?S(JO. I'aid freight in cash ^L'O. 
 
 2. Acc(!ptwl Massey & Cos «lraft on us, owing to the ahove consi<'nment 
 
 for $400. 
 .'{. Sold E. H. Parks, on his note at fi months, indorsed })>• |5. T*'iwtf)n, 
 
 merchandise from Massey & (Jo.'s ('onsignment, $.'500. 
 4. Shipped to S. Davidsc.n it Co. 400 hush. Fall Wheat at $1.00; .300 
 
 bush. Spring Wheat at 90c., for their acc<tunt and by their order. 
 
 Paid freight and other cliarges with A. JJrook's acceptfinco at <30 
 
 days, $24. 
 "). Shipped to S. Davi«lson it Co., for sjile on my account and risk, 200 
 
 bush. Fall Wheat at $1.10. Paid freight on samt; per check $H. 
 
 6. Shipped to M. L. Sanderson, .'{00 bush. Fall Wheat from Manniri" it 
 
 Alacpherson's Consignment, No. 1. Paid freight on the ,s;ime by 
 giving an onler on A. (i. J lay for $25. 
 
 7. Paid W. Huston's sight draft on me for $500 in favor of John Dovle, 
 
 with g(KHls from store, $.'?00 ; goods from Massey «t Co's Consiya- 
 ment, $ 1 00 ; check for balance. 
 
 (a) Journalize the foregoing. 
 
 (b) Draw the note for No. 3. 
 
 (c) Make the sight draft for No. 7. 
 {(J) Make out the invoice for No. 4» 
 
 4, 
 
 ■I- 
 
 4ii 
 
 ^ 
 
94 
 
 HOOK KKKPINO, 
 
 SET IX.— GRAIN AND COMMISSION BUSINESS. 
 
 /l<M>fiS iisi'if — Joiiriuil.f Lrjhji'r, i'usli, liixik, anA Jlill Jiook, tfie last ns un 
 
 Nov. 1, 18f<6.-— ( ?""''•"''« '"""'^: ) Cdimiicii.cl tlio (iiviiii and Com 
 
 inis.sioii business, investing as follows: 
 
 IJ.'sources. - CiLsh on liand, Si,r(()0 ; 400 Inisli. Fall Wheat , -it $1 
 1,000 bush. Oats at 40c. ; R. iliils owes on account i$tOO. 
 
 lyiabiiities. I owe W. Marling on account §100, and F. Fmser 
 on account, SoO. 
 2. T)e{K)si(e(l in J>ank of Commerce $1,400. Shi[)i)e(l to Fisher «k Son, 
 
 Montreal, to be sold on my account and risk, 500 liush. Oats 
 
 invoiced at 40o. ; 200 bush. Fall Wlieat invoic«?tl at §1. Paid 
 
 shippinjj expenses with cash $20. 
 .'i. Bought of \V. Young 500 bush. Wlieat at 90(;. Gave in payment my 
 
 draft at 30 days on 11. Mills for 8400 and check for balance. 
 1. Received from R. J'< iwler, Kincattline, to be sold on his account and risk, 
 
 1,000 bush. Barley, iinniceU at 450. Paid freigh:, §.".0, with cash. 
 5. Acceptefl W. Marlings draft on me at 10 days' sight in favor of (!. 
 
 King for 8100. 
 C). Sold from R. Fowler's Consignmeni, '•/o. 1, to J. Matheson 500 bush. 
 
 Barley at 45c. Received in payment his note at .'JO days. 
 ?<. Shipped to Fisher «fe Hon, IVIontreal, (2nd shipment,) 400 bush. Oats 
 
 invoiced at 40c. and 500 bush. Wheat jit 90c. Paid shipping 
 
 expenses §40 with my order on Fisher <k Son. 
 
 9. Bought of John Young, on one month's creiUt, 1,000 bush, Oats at 
 
 35c. ; 500 bush. Barley at 50c. and 300 busti. AVhe.it at 80c. 
 
 10. SoldTait & Co, "00 bush. Oats at 42c.; 300 bush. Wheat at §1.05, 
 
 Received in payment an order on Robert Ewing for §200, the bal- 
 ance to remain on account. 
 
 12. Fisher A Son rendered an Account Sales of the gcMMls shipped to 
 
 them on the 2nd inst. They rtnnitted my net proceeds in cash, 
 §450, which T innnediately tleposited. 
 
 13. Robert Ewing p.iid liis order received from Tait k Co. on the lOtli 
 
 inst. uith his check §200. 
 15. Si.Kl for cash to L. M. Stark 500 bush. Barley, at 52e., being the re 
 m.-iinder of It. Fowler's Consignment, No. 1. Deposited in bank, 
 cash §400. Paid Marling's draft of the 5tli inst. with check §10(» 
 
 1 7. Closed R. Fowler's Consigiunent, N(j. 1, and i-emlered an Account Sales. 
 
 Commission 2/' on sides, § — . Storage 2c. per bush., § — . Check 
 reii'itted for net proceeds. 
 
 18. Bought of M. C. M(rCaul 600 bush. Oats at 30c. Gave in payment 
 
 my note at 30 days for §100 a tut my or<ler on Tait it Co., for §80. 
 
 19. Shipped to Sloan ife Williams, jVLmtreal, to be sold on my account and 
 
 risk, 1,200 bush, Wlieat invoiced at 80c. Paid shipping expenses, 
 $30, with cash §20 and niv sight draft on Tait it Co. for $10. 
 
 :-'.SSl f* 
 
BOOK-KKEPING. 
 
 VB 
 
 20. Bf.H>,'lifc of A. ITilkfi- 1,300 Inisli. AVIi.-.it at 80c. G;ivo in pyinont, my 
 
 i-liwk oil till! Iiaiik. 
 23. Ro(('ivc<l from ]<"i>li(r it Son .ui A<<ouiit S.ilcs of my -JimI .sliipiiiciit 
 
 made to tliem on tlit; f<th inst. >.<t ])io((til.s !?rOU, wlii.h is jilacfnl 
 
 to my cr«'(lit in tlicir IxHiks. 
 27. Ilftwived from ]{. Fowltr, Kincanlint', (I'nd Consirf.) fo he sold on liis 
 
 account and risk, 1,000 Inisli. IJailcy. Paid fiviylit, .*L'."), with 
 
 check, and flmyage, .^1"), witli «asli. 
 
 29. Sold Hobcit Walker, 400 l.iish. IJatJcy from ]{. Fowler's Cons^t, 
 
 No. .2, at r)T>c. Received in jiayment his note at .SO days for !?!(»((, 
 and his sight draft on Jas. .lolmson for balance, .*120. 
 
 30. Discounted J. Matheson's note as jicr ]!. J5. Discount allowed, $15. 
 
 Net proceeds deposited in J Sank. 
 
 Inveiil'mi's, Nor. SO, ISSC. 
 
 Mdse.— .-^OO bush. Wheat at 90«,.; ]'200 bush. Oats at .Wc; 
 
 f)<K) bush, barlt y at .''mc. Ti.tal JflO.") 
 
 Shijment to Sloan & Williams, No. 1 U<(0 
 
 < 'omniissidU— 2 ' on tlie part sold of It. Fnwlcr's Coiisgt. 
 
 ^o. L> 4 40 
 
 NoTK.— All the corri'spondtiKe in coiiiititioii witli tlii- set b to Ik; uvfelematically ilone by the 
 student as in actual busintss, 
 
 Statemejit—Si't IX. 
 
 AcCOt NTS IN F.KIKJKR. 
 
 ■- 
 
 Dk. 
 
 
 •v. 
 
 
 I;K.S(>I R(K.". 
 
 I.IAhlUlTlKH. 
 
 , (iAl.N.t. 
 
 Lo»ii 
 
 KH. 
 
 Stock 
 
 
 Jii.-iii 
 .:.;in 
 
 Idii 
 .■'in 
 
 I.', 
 
 
 1 
 
 J-',.,<l 
 
 ''■''■!['. 
 
 ^ 1 ■> 
 
 JIIO, 
 I'!.'''.! . ■'' 
 
 '.III 
 .'ill 
 til ?IJ 
 
 i»i.; 
 
 Km 
 
 S.?>i 
 
 """ 
 
 f 
 (!i:o 
 
 O'jij 
 
 1 
 
 1 
 
 i 
 
 Hi) 
 
 ..'(1 
 
 I'. 
 
 ..'II 
 .'.It 
 
 ID 
 1 
 
 10 
 
 jr. 
 
 
 t'tish 
 
 
 Mf'rr]iaiidi.se , 
 
 
 Hills liinirulilc 
 
 mil.-< PniiaUf. 
 
 Biuik ..' 
 
 lull 
 
 i 
 
 l.SII 
 
 III 
 
 
 Tiilt d-Co 
 
 lnln-e.it d: IUxnamt 
 
 /'. Friisir 
 
 
 S/i!/i't to Fi"/!! !• it Sun. y<i 1 
 Commi.s-'<itiii 
 
 -/'.-": 
 
 
 J{. Foil lir'n Coii.'iiiiii'l, Xi). .' 
 
 F!.'<lii'r <t- <SV.» . . . '. 
 
 Sioriyje... 
 
 S/i!/t't to Fuller ti- Si)ii,yo. : 
 John Younif 
 
 '1 ' 
 '^iin 
 
 1 :.',!! 
 
 li'.H) 
 
 
 ,.'.;ii 
 ■'>" 
 
 :.'li 
 S.',0 
 
 ll-'il.-, 
 
 1 
 
 i 
 
 
 •Ship't to Sloan •(■ H'illiin)i/<, 
 No.l ,. 
 
 Stocl^a vet Inv'K/ . . 92.'>,'0 
 
 /.'; 
 
 " " Worth 
 
 ! 
 li 
 
 
 
 ' 1 
 
 
 
 ii.'ii.->\ 
 
 
 ' 
 
 :i'.ili) 
 
 III 
 
 S'.mi 
 
 It) 
 
 i'o.-, 
 
 SOS 
 
 10 
 
 .^'^•nwpriraK^H' . 
 
 i^s!^^ 
 
9< 
 
 BOOK-KEGPINQ. 
 
 In the previous part of this chapter, it was the ai,„ f. estahlish th« 
 pnnciples underlying the proper inrth.Hls of .loaling with shi,,rnPnts and 
 consignnients The student who h-.s gras,H.l thesel.rin.ipl/Xnow i'^ a 
 position t« make a practical applioa, ion of thnn. As eaX l.ran • i of he 
 .Shipping and Commis.sion business has its own peculiar re,,ui.vments^ t 
 wouKl .,e beyond the scope of this work to discusi these in particZ A 
 that oan te done is to exemplify in a general way, a ineth,xl which is 
 dioroughly practical and which can easily be modiflLd «o as to meet the 
 demands of any particular case. The b<.,ks used are : a Commi^ion In 
 TZleT"' '^"™"^""^" ^'«^ ^^' J^^rnal, Cash Book, BiU Ck, and 
 THE COMMISSION INVOICE BOOK. 
 This book is the one into which the first entry of a consignment is made 
 When th3 invoice sent by the shipper is receiveci by the consi™he 
 either pastes the original invoice, or enters an abstract of it into this book 
 He will also number the consignments, respectivelv. 1, V 3 L As rnm 
 as a consignment is received, the invoice will be checked the titlfof the 
 consigmnent .>eing entered (re.1 ink; in the margin, and ev r^^^^^^^^^^^ 
 age, Ac belonging to it will be marked with the dUinyuisL J r^^hev 
 given to.t. Different consignments from the s.ime person shouH be 
 marked A., B., etc. For example, the thinl consignment receiW from 
 Thos. Murray might be entit'<..l: "(10) Thus. Murniv's Cons..t C " Z 
 the fourth: «(1«) Tnos Murray s cLk D.' The l^tteS tt Sphabe 
 shews the order a.-nong those received from the same person or Hnit w ile 
 the number shews the onlcr among those received from all parties The 
 Comimssioa Invoice Bin^k is used merely as an auxiliary. 
 
 THE COMMISSION SALES BOOK 
 Whenever a consigriment is received, an account is opened with it in this 
 lKK,k, having as is ti ie that given to it in the Com. Invoice B-^.k Th s 
 account ,s delnted only for the actual amount which it ro..f. the consi ', c. 
 for f. -eight, drayage, storage, &c. It is credited with all a>non nt8Z(i!h: 
 as they occur. The xneth.xl of posting f.-.n this book will bT; l^u,: '•. 
 st<Kxi on examining the form shewn on pp. ; 00 and 101 Cash trin"L..ti 
 are not posted from this book, but car'ri^d to the Calk S::! X C-ilh 
 Accoun IS kep in the Ledger, as such would only cause a.lditional w.H-k 
 When He gcKKls telongmg to a consignment are all sold, the account ; 
 charged with the commission, and an Account 8alcs is rendei-ed If the 
 net procee, s are not remitte.1, the account in this book may be ik open 
 or It may be closed and the net procee<ls may be place,l to the credit of 
 the consignor in the Ledger. If the net proceeds are remitted, the aTcou 
 
 i;iVivTi:rLS^^r.'^ ''-''■ ''- ^'-- '^'- ^-^ ^^^ 
 
 Nont.— In making out the sliiw showing the gaits, the ol -ks w.ll ■.<.<> tu^ n- • ^ . 
 
 these are quite sufficient to identify the ^Lh soTl Murh tiniH U »V. i . '^'"?"?"™ent nunt&rrf, u 
 numbe™ o? the con»ignment8iii,tek.l of their f.mtitiesl '' ''^""'"If '»>« «li»UlvuiUlii.B 
 
BOOK-KEKPING. 
 
 f7 
 
 SET X. -EXPLANATIONS. 
 
 In thu set the KK^ks fro,„ wlurli tl.e jH-sting is clc.e are: the Cash 
 transferro, fr..,n the Cash .-..^.k to the l.e.lger. such of th. "s .oc- . . 
 
 ult.r;r'''r'^u"'r'''\ "'''•" 'r' ---» f-» the C..,n„.iss..n ^Z 
 JW,k to the Casli B.H,k. Entnes l,..lo,.,,n„g to .-onsignments app-ar in the 
 Com.mss.on Sales B.K.k, ami all excepting those involving casl are pos '^ 
 therefrom to tne Leclge,-. Other transactions are entere,! into the J.Lrn 1 
 
 SET X.-SHIPPING AND COMMISSION. 
 
 Books used-commission Invoice Book, Commission Sales Book, Cash 
 
 Book, BUI Book, Journal and Ledger. 
 
 , March 1, 1887. 
 
 ( st„d.„f.«me. ) has this (lay commenced a Ge.ieral Shipping and Com- 
 miss.on bus.ness, w.th the following Resources an<l liabilities • 
 
 Resources -Cash on hand. 8l',500; (J.kxIs i.i store valued at 
 $1,200; D Gunn's note for 67;JO, .lateu Feb. 1, 1887, draw,, at 
 rVA?^'^^ bearing interest at 7%; interest accrue.! $_ ; A 
 u. McKay owes me on account, 8" ^. -, , ■ 
 
 Liabilities.— I owe J. H. Steele on account, $150 
 Engaged H. A ]\IcLaren as lKx,k-keeper at 850 per month, ar.d 
 John Boyd as clerk at 030. ' 
 
 ft JiS'ir/'TpP- 1 ''^' «^."^^"'-'"l^« ^'^ M-arehouse and contents for 
 5fjU<iO at l/^. Pairl premium with cash, 8 . 
 
 3. Deposited in the Bank of Commerce cash, 81 500 
 
 Shipped to R. 31. Mercer, Toronto, 4.5 f)resse<l ITogs, 9,7-'0 lbs at 
 6^0 to be sold on my account and risk. Pai.l shipping expenses 
 with my check, $i>5. * ' " ' 
 
 Paid cash for Fuel, 810. 
 5. Receive,! from A G. .ArcK" von account 10 tubs Butter, 4. "iO lbs., .tt 14c 
 
 - Up • ^T'^•p^^^t;''^"°*«-^l^^'-^--t•u^of;u.ount .8- 
 .. Received from Peter McG,..gor, Paisley, to be sold on comn.i.'sinn his 
 first consignment, consisting of 1,S0 bbls. Flour invoiced -it' Si 
 Paid freight, 860, with my check, and draya-^e ^^O v h l h 
 8. Sold Richai-d Baxter 100 bbli Flour from Petef McG;eg:rt ct! ;!«,. 
 mentat $4.90. Received a sight draft on F. S. Sorby^^ 8:100' 
 an order on P. H. Somers for 8100, and a check on the I^Ierchant.' 
 Bank for balance, $ — . 
 
 the 3rd mst J^et proceeds 8750. He remitted' a draft on the 
 Molsona Bank, purchased with t hat a mount. (Exchange J " ' .) 
 
 10 
 
 II 
 
 : - *t™«* 
 
 ^irJ*'^^K«??^^^-^•■ 
 
< * 
 
 98 
 
 11. 
 
 12. 
 14. 
 
 16. 
 
 17. 
 18. 
 
 21. 
 
 22. 
 24. 
 
 25. 
 
 26. 
 
 28. 
 
 29. 
 30. 
 
 BOOK-KKKPlSn. 
 
 Sold A. II. Maiiiiiiij,' 80 l.l)Is. V'l -iip .'lum Peter Mer.io;,'«>r's ptrisif;!! 
 iiinit ,it .*•"). ISeeeived ill jwiymeiit Humiiel riiukers liiito for ."5-00, 
 dated .laii. 11, ISS7, at 4 iiius., (in -Aliicli I am Hllowe<l discount al 
 till! rate of G% for unexpired time ; tlie bulance to remain on ac- 
 count, .^ — . 
 
 lleceiwd from E. P. llicc, (luelph, to Iks sold on commission, 50 \ic<is 
 Gutter, 2,250 ll>s., invoiced at i:5c. Paid freight with my check. 
 $7."iO, and drayage with cash, $2.50. 
 
 Rendere<l Peter McGregor an Acct. Sales, charging hiiii 2J% com 
 85 for storage, and $i.'M for insurance. 
 
 Received from A. H. IMcKay, his note at 60 days, in full of 
 account, $ — . 
 
 Paid for Telegram, cash 25c. 
 
 Received from Peter McGregor, Paisley, his second consignment of 
 Flour, 120 bbls. at f 4.80. Paid freight with my check, $40, and 
 drayage with cash, ?10. 
 
 Sold Alex. Iklann on account, 20 Dressed Hogs, 3,600 lbs. at $6.20 
 per 1 cwt. 
 
 Remitted Peter McGregor, on account, D. Gunn's note as per B. B., 
 allowing discount at the rate of C%, and cash for balance, S — . 
 (As this note bears interest, the amount when due must be dis- 
 counted at 6% for the unexpired time.) 
 
 Sold Win. K. for from E. P. Rice's Consignment 30 kegs Butter, 
 1,420 lbs. at 15e. ; from Peter McGregor's second Consignment, 40 
 bbls. Flour at .*.").50. Receive<l in piyment a draft for $100 at 30 
 days' sight, on B. C. ^Malloiy ; a siglit draft on A. Hilker for $150, 
 and a check for bulance, $— . (Mallory's acceptance taken at a 
 disoonnt of 2%). 
 
 Deposited in the iJank of Commerce, cash SI, 000. 
 
 Received from E. P. Rice, his second Consignment, consisting of 150 
 kegs Hut ter, C.-'lOO lbs. Paid freight $1 3, and drayage $4, with check. 
 
 Sold P. H. Somers on acct., from E. P. Rice's first Consignment, 20 
 kegs Butter, 830 lbs. at 15c. 
 Paid cash for Ccwl Oil, $1.60. 
 
 Discounted Mallory's acceptance at 8% per annum, and deposited 
 proceeds. 
 
 Rendered E. P. Rice an Acct. Sales of his first Consi^Munent, charginj; 
 3% commission, $2.50 for storage and $1.20 foi .nsurance. 
 
 Remitted Samuel Barker's iiote as per B. B., at a discount of 
 6% per annum and my check for remainder of net proceeds due the 
 shipper. 
 
 Sold R. A. Foster for cash, 100 bbls. Flour at $5.20. 
 
 Sold John Hardy the remainder of Peter McGregor's second consign- 
 ment »t $5.60 per bbl. Received in payment a draft on the 
 Bank jf Montreal for $200, a sight draft on Thos. Eraser for $100. 
 v.nd an order on J. H. Steele tov $148. 
 
 'I*-¥Wib 
 
m 
 
 BOOK-KfKPlNO. 
 
 M 
 
 30. 
 
 Rendered Pet*-. MoCir. ;,'or ;in Ai-fdimt S»tle« of his 5eroti<l ennsign- 
 iiieiit. C'li;nM,'es : (■onitiiissi..ii, ;? ' of wiles; ftoiage, ?t.r>0; iii.sur- 
 Jiiico, f^:).'>0. l{eiMit)e.l tlm f.ir..y,,iiij{ sijjht Hriift on Th<»s. Frjis»>r, 
 the iKilanco of neb i)i«.cee<l.s iM'ing j)lafe<l to th« ci ilit ot' .sJiipper. 
 
 Received from p. H. Soinei-s, ^l. S. Piercer's note for 8125, 
 dated Jan. 4, 1887, at .1 niontlis, and his cheek on the tinuk of 
 Montreal, to iMilanco account. 
 SI. DeiHisited in the P>ank of Ccnninerce, cash $15. 
 
 A. II. Manning paid cash in full of account, $ — . 
 
 Paid H. A, McLaren .«!')0, and Joiin lioyd $30 per check. 
 
 Innmtorii'H, March .?/. 
 
 Mdse. — Oooda remaining nnsoM jjgg og 
 
 J xixjnse. — Fuel on h;iniT '..'.'.'. 4 17 
 
 Result.— Net guiu, ^200. Net capital at closing, $4,608.92. 
 
 '.-.MZ.VA^.jpjaams.ssais^.rL.'^x- 
 
100 
 
 HUUK-KKKPINU. 
 
 'JmT 
 
 COMMISSION 
 
 (V r. McGregor's 
 
 CUAKUES. 
 
 m 
 
 
 
 
 » 1 
 
 
 1 
 
 
 tt 
 
 
 • 
 
 *• 
 
 t ( 
 
 
 tt 
 
 (( 
 
 
 liiinh of Cuiiimiri'e 
 
 CohIi 
 
 Cotnm'm'iion 
 /iiiuniHce 
 Stanuje 
 
 P. McGrtijor* 
 
 Frnijht I'll ISO ilii>. Floin, mined 
 
 tit it7.:.'l> 
 
 Dniijnije 
 
 Ml) commiimion «< 'ij % 
 
 yeC proceeda 
 
 on 
 
 r>\ ■ 
 
 111 
 
 77S 
 
 890 
 
 4S 
 
 * When this acromit is closwl tin aci'oiint with I". Mi-Orc^or Is opened In the Ledgpr. It IsCr. 
 " By 1'. Mf<Jrr({or'ii tVinslKnnient, ¥"7s.4.'i." Some acomiitanls do not i.'lose Buch as this until the 
 reniiltitiii'o is inaile. 
 
 (B) r p. Bice's t 
 
 CBAROES. 
 
 18S7 
 
 Ma. 12 
 
 V 
 
 Battle of €nmm<-rre 
 Cash 
 
 Frelijht on 50 kfffs litUter, 
 
 llm., vidnnl lit Sjri.>..-,0 
 
 Diayiiije. 
 
 .sr,o 
 
 X This account is filled only in part. The student is expeo'ed to do the rest himself. There will 
 \^ tW't otlKT !u-«-^.>!nts in thr ( 'nr.iniiasinn Hales Hnnk, vis. ; "(3) P. M.-Orrjfnr's r.-,r,s'ij7)roent B," 
 and "(4) E. P. Kice's Ck)nsi|(nmeat B." 
 
 a.;e..'ijagg;' Jw i uafe Miwngg»j 
 
BooK-uutruia. 
 
 lOi 
 
 4.- 
 
 saijBs book 
 
 Consi^nntent A. 
 
 18S7 
 Mar. 
 
 \/ 
 
 Ca»h $3iH> 
 
 I*. If. Somern. . , Ji/f) 
 
 IHIIa Rer'hlf S<K> 
 
 A. II. Jfaiwnuijf. SOO 
 
 Sold to It. liiu-ter 1(10 bhU. Flour 
 at^l'.iO 
 
 Sold to A. II. Manning 80 hhU. 
 $■'). Jif'r.'il in jinrl paifment, 
 Jiarhtr'H note as j»r Ji. It 
 
 I 
 
 490 
 
 400 
 
 SOO 
 
 if • 
 
 t Jounwl entiy : A. R Mannlnx, Dr. 92.20, Int an I Dis., Cr. HaOi 
 
 Consignment A. 
 
 8ALKS. 
 
 <!--+ 
 
 W? 
 
 ■Trvv;.''"?--': 
 
 T5B¥J 
 
lot 
 
 BOOK-KIEPIira. 
 
 P 
 
 JOINT ACCOUNTS. 
 
 When two or more penons (or firms) unite in tho purchase and sale nt 
 soinfl particular article or articlp.s, with a view to ninkin^ a pnitit theit'hv, 
 a */»«<:m^ p/irtnomhif) is fonntxi, and the gutxis ai-e siiiti to Iw Inmght and 
 itiild on Joint Account. 
 
 Tlio partnord do not carry on business under a finn title, ns in tho rnso 
 of a general partnership, for the joint interest extends only to tho tnins- 
 artions connoctwl with tho » ••tides specified at tho time tho contnirt was 
 made. It la usual to ai)poiiit one of the persons conoerne«l as Manager, 
 and to derine his duties as such. 
 
 "Whenever go<KU are pun-hascnl or otherwise )>rovidiHl for tlie joint k|m'cu- 
 lation, it Is-comr ' • duty of the ]>artner who supplied them fo fnrni-h 
 e.urh niemlK>r with opy of tho invoice. On the <Iis|h)S4iI of tli<» ]>rojKTl\ 
 tho manager will n>ndi.. an Account Sales to each, 
 
 "Shipment Co" or "Adventure Co." is a represenfufivt; title under 
 which the amount of onr intercut in goods or other projH-rty to Ihs sold on 
 •joint account is j)lac-!d. 
 
 " Merchandise CJo." is a title representing goods received 6y «« to Iks sold 
 O.I joint account. 
 
 SHIPMENT CO.'S. 
 
 Debit Shipment Co. for our in- 
 terent in property shi})pi'd by us, or 
 furnished by others, to l»e sold on 
 our joint account and risi . and also 
 for our nhare of expenses on ' lie same. 
 
 Credit .Shipment Co. for our share 
 of the net proceeds when an Account 
 Sales is received. 
 
 If »f, the time of closlnsr the l)ook -. a part of tht- (toocIb remains iinsolrt, and if an acrount nf )iartial 
 talea has tuin rcoeiverl, Shipment t n. Khciiilil be crediltd for our thare of the proccwls, as well as for 
 our inten-nt in .he property reniuinlii;.- unmilil. 
 
 If no Acpoi nt 8«lc» has been reml 
 the aiiiuunt necessary to dose the aci 
 
 red. Shipment Co. should be credited " By Balance In<c itoTTf for 
 
 'int. 
 
 Shipment Co.'s ai closed either '* To" or " Ly Loss and Gain." 
 
 Different Shipment Comp inies are distinguishefl by numl)ering them oi 
 by atfixing letters of the alphabet, as: " Shipmeat Co., No, 1." "Ship- 
 ment Co., No, 2," " Shipment Co,, A,," <kc. 
 
 MERCHANDISE CO.'S. 
 
 Debit Mdse. Co. for our interest || Credit Mdse. Co. foi" tLi proccf /.< 
 in the projx'.rty received, .and for nil || o/" sales, 
 the cliarges on the irhole iAliipinciit, {| 
 
 At the time of closini,', ]\Td<e. Co. will be debited for all unposted 
 charges for the net proceeds due the shipper, and for our share of the net 
 
 ii 
 
 'r^mta 
 
 ■9ti^rk..'w.-a 
 
ItOitK KKKHINU. 
 
 I or; 
 
 'jnla (if ^,,y). Wh,-.; there iH tt !««,, Md«o. tV.. will l« erwliu..! for o»«r 
 '(/ifir* (»t It. 
 
 ha.,.|. rhe rrmiUmler 1*,,,^ own.: I hy .1,. .hi, "ilr .'r .ini.,.';^ '' '"' ""'■ '"" ""*"" "' »'"' *" " 
 
 ne,.!.!«:;';',';.",!:.\*;.^;;,',',::';;'.''' *'■'"'■• ''"• •"""■'' •■*• ■"""•"• "*" ^'■''-* '"^-'"^•' <■■' "»• «>- 
 
 l)ifr.Mf'nt ^r.-rvlian.iJM. Cm,,, ,„!,.., «re usuhIIv (lisfii.L'ui.sh.-d l.y affixing' 
 lott»T.s (.f tho alj,halH-t, ,.s '• .M.JM-. Co., A, " " >!(ls<-. C..., H," A-c. 
 
 To I-.M. TIIK Net T'„,„.KKi..s.-_Fn.m fof;,l k;.I,.s ^hnhut total .-liaruos 
 su.h an trea-t, stony.-, iu.uvinuv, inininissio,,, A,-., aii.l tho ivnmin.i. , 
 w.h ho tlie n... i.rfK-«..><lH ,.f (1.., husini-ss. This U-Uuf ,Uw, thv part in-Ionji- 
 ing to oach person i.s foini.l l.y (livi.jii.j. th.- whole a.conling to agr....iiH.nt. 
 
 To FIND oi'B Net Cms.— From our i.,-t proceeds cle<h.et our net cast 
 and the reinHind..r will he ...i, net k-um. ]f our net pnK^^ee<l8 are less than 
 our net cost, the differente, will, of course, l)e ;i hvss. 
 
 Company account.s are generaUy clostni whenever the property Iwlo. -ine 
 to tlicm IS di>|)osed of. x i j - 6 
 
104 
 
 BOOK-KEBPINQ. 
 
 BXAMPLBa 
 
 r 
 
 TRAIt8ACnOIf& 
 
 JOURNAL ENTRIES. 
 
 1. D. S. Baker shipped to S 
 L. Mason, to bo sold in joint 
 account, 650 bbls. Apples, in- 
 voiced at $1.80. The sh^^r 
 tooK 300 bbls. from his own 
 warehouse, and the rest he 
 bought of Taylor, giving in 
 payment Jones' diedc on the 
 Molsons Bank. He paid atop- 
 ping expenses $30 with his 
 sight drait on Cameron. 
 
 2. Mason, on receiving the 
 Apples, paid freight $80, and 
 drayage $10, with cash. 
 
 3. Mason sold the whole con- 
 signment (less 10 bbls. dam- 
 aged) to Welsh & Co. at $2.60, 
 and received in part payment 
 Miller's note for $200, due in 
 3 months (discoimt 8% per an- 
 num), and Wilson's eight draft 
 on Manning for $150. 
 
 4. Mason charged 2% for 
 selling, 2c. per bbl. for storage, 
 ^% for insurance, and ren- 
 dered an Account Sales remit- 
 ting Wilson's sight draft on 
 Manning us above, and an or- 
 der un Welsh & Co. to settle 
 with Baker. 
 
 5. Baker received the Ac- 
 count Sales and reinittiince. 
 
 T 
 
 (Baker's entry. ) 
 Cash Dr. . . 
 Welsh ^Co. " .... 
 To Shipment Co. 
 " Mcuoa 
 
 Baker's entry) 
 Shipment €o. Dr. , 
 
 Mcuon, " , 
 
 To Mdse 
 
 " C«Mfc .... 
 " Oamerou , 
 
 (Mason's entry.) 
 Mdae.Co. Dr.'... 
 
 To Baker 
 
 •= Cadi 
 
 (Mason's entry.) 
 Bills Receivahle Dr. .... 
 
 Cash " 
 
 WdshdkCo. " .... 
 
 To Mdae. Co. . . 
 " Jnt. ami Die. 
 
 (Mason's entry.) 
 
 Mdse Co. Dr. 
 
 Baker " 
 
 To Conimitision , . . 
 
 " Storage 
 
 " Invirance 
 
 " Cash 
 
 " Welsh A Co... 
 
 " Loss and Gain. 
 
 600 
 600 
 
 690 
 
 SOO 
 
 160 
 
 1S18 
 
 974 
 600 
 
 ISO 
 1210 
 
 I 
 
 sm 
 
 630 
 SO 
 
 600 
 90 
 
 1664 
 4 
 
 '.? 
 
 lo0\ 
 1210 9.7 
 mo 04 
 
 93 
 
 700 93 
 600* 
 
BOOK-KBEPINO. 
 
 105 
 
 Account Sales of 650 hhls AnnJpR anl^ «« • • ^ 
 
 D S Ba1c^j'n,./tv -tppies, sof<i on joint account of 
 u. ^. Jiafcer and S. L. Mason, each one-half 
 
 Sales. 
 
 Sold to Welsh A Co. 040 bhh. (JO damaged) at 
 9^ 60 
 
 Charges, 
 
 Freight and Brayage . 
 
 Stitragt ] . . 
 
 /imurancf 
 
 Commimiion 
 
 Total net proceeds 
 
 M'l i net proreedn $700 tA 
 
 Your i net proceeds .'...." 76'0 9J 
 
 Remittal hy ,i,,ht draft on Mannim, and order on 
 » clth <fc Co. to coiner mt j,ro(,-,(U and dos,' 
 account 
 
 R d- 0. E. 
 
 Clinton, June 9, 13S7. 
 
 -91360 'j-l 
 
 S. L. MASON, 
 
 Coimujnee. 
 
 90 
 13 
 
 5 
 
 85 
 
 leiij^ 
 
 J',:' 
 i--,ji 
 
 
 ouinal 
 « ^^ill alx) write 
 
 In the following exercises, the stiulent will give the partners' T 
 entries an.l make out the A.-.ount Sales in each case 1 1 
 the correspondence re4uire(l. 
 
 EXERCISE L 
 
 1. Monroe .shippe.l<o r.ilroy fur .sale on joint a<.,.ount, 1 -^OO hush Wl . ♦ 
 mvoicea at 90.. and paid shipping expenses with I-ash ^ '' '"'*' 
 
 Gilroy sold the whole shipment to Ker 
 
 )t. 
 
 ioy soi,, rne wiioie s upment to Kerr & Co. for $1,200, receivin^r i 
 payment Bnnvn's sight d.aft on Jones for ^r.OO • AI, K ' ' ' ^ , 
 ancoduein 10 days for S400; an onler on'coibeU f ::'i^;^:7 
 balance to remain on account ' <;• iww , iii 
 
 4. GUroy charged V commission, m .tovuge, $3 insurance, an.I rendered 
 an Account Sales, remitting Ih-own's si-dit drift /is .Iw.vl iT 
 own note at 20 days, to coJ-er the amount due thelipi;:.!' "'^ '" 
 
 EXERCISE II. 
 
 1. A8hippe<l goods, invoiced at .«l,2r,0, to B, for sale on joint ac 
 and paid shipping expenses *25, with his note. 
 
 count 
 
106 
 
 BOOK-KEEPING. 
 
 .»'!■■- 
 
 B, on receipt) of the goods, paid freight ^30, with cash and drayago 
 $6.50, with his check. 
 
 B sold the whole of the goods to O for $1,440, and received in pay- 
 ment C's sight draft on D for $600; E's ac-ceptance for $700 
 short due 10 days, and G's check for Ijalance, .? -. 
 
 B rendered an Account Sales, charging 3% coiniuLssif n, $3.50 for 
 storage, and $1.45 for insurance, lie remitted a bank draft pui 
 chased with the amount rcMjuired to settle in full with the shipper 
 
 EXERCISE m. 
 Avery shipped to Black for sale on joint account ^j.TOO bbls. Apples, 
 
 invoiced at $1.20 per bbl. Paid ca>li, $20, for lo-uliiig. 
 Black, on receipt of the A{)ples, paid freight, $160, with his check; he 
 
 also paid tlrayage, .$20, with cash. 
 Black added to the joint sides 500 bbls., which he purchased from 
 
 McLetxl at .$1.10, giving in payintut his si^l ' draft on Murray t'ui- 
 
 $400 and his note at 10 days for the l)alance, $ . 
 Black sold the whole of the Api>lcs (loss 10 bbls. which spoiled) b. 
 
 Mason at $1.70. He received in payment Hilker's acceptance due 
 
 in 15 days for $S0O, Bruce's sight draft on McKay for $400, an<l 
 
 Mason's check for the balance, $ — . 
 Black chargefl 2c. per bbl. conuuission for buying and selling, $30 for 
 
 cooperage, $10 for insurance, and $20 for stonige; and rendered 
 
 an Account Sales, remitting to Avery, Bruce's sight draft as above 
 
 in part p.ayment of net j)roceeds. 
 
 EXERCISE IV. 
 
 A. Ruby shipped to Morris & Co., for sale on joint account, 2,500 bbls. 
 Apples, at $1 per bbl., paying shipping expen.ses $175, with his 
 check on the jVIerchants' I'.ank. 
 
 Morris it Co., on receipt of the Apples, paid $15 drayage with cash. 
 
 Morris & Co. sold A. jMcGarva, from the consignment, 1,000 bbls. 
 at $1.25 per bbl., and received in payment their own note for $400 ; 
 Mc(jarva'3 note for $000; and a check on the Merchants' Bfink 
 for balance. 
 
 Iluby drew at slight on Morris Ar <. for $500.* 
 
 ]\lorri3 it Co. sold AV. H. Houston on acct., 800 bbls. at $1.30, from 
 the Co. Sales. 
 
 Morris & Co. sold IT. J. Taylor 6S0 bbls. (the remaining 20 bbls. bt^ing use- 
 less), at $1. 10 per bhl., and received inpayment his note at 30 day- 
 for $300 ; an order on 1). L. Brown for $120, and cash for balance. 
 
 Morris <fe Co. charged 2^ cts. per bbl. storage, \% insurance (on iii- 
 voico j'.ricc). Mini 2 ', t-lIl;Ii^li^r iosi. Tlicy render nn Acount K^rtr - 
 remitting a draft on the Molsons I'aiik, purcha.se<l with the amouiu 
 due A. Ruby. 
 
 • Buby will credit Morris & Co., not Sliipmeiit Co. llorriii & Co. will debit Ruby. 
 
BOOK-KEEPINO. 
 
 BXERCISB V. 
 Afay IG, 1S8?. 
 
 107 
 
 Student .shipped to Murray * Cassidy to l.e sold o.i joi,.t ncvour.t f. 000 
 bush. \Vheat, invoiced at Hk:, m hiiii lie purcha.seti of .Aluir A Co 
 giving them in j-ayiuent liis note at 10 days for $1,000, an onler on 
 b. K. Brown for i<m), and his eheck on the liank <.f Montreal for 
 balance. .Student paid .shij)])ing exi)ense.s, $40, with cash. 
 
 •JO. Murray & Cassi.ly, on receipt of the Whe^it, paid freight, mv with 
 check, and drayage, 810, with cash ^ o ,. , 
 
 i'l. :Murray fz Cassidy added to the consignment 1,000 hush. A\1.eat pur- 
 chased of >S. raylnr at 8.^c. They gave in payment a sight draft on 
 Cameron it Campbc!]. " 
 
 •j;}. Murniy & Cassidy sol,UhcMlK,le consignment to Kohert II. Carscm, 
 
 ^ f « f '^ ' nn . '"r' \ ^ ' --o '^'"■^ '•"^'•'^^ -^ ^" P-^V>'-''t tJ'eir own 
 note or .^ ,000, sh,., duo 7-3 days, at a <liscount of 6 / per annum ; 
 
 a90-davdratton lalhster .fe C... f.,r .?l.oOO, ami a sight draft on 
 Kella Co., for .«1',(.00 ; the haLnue to rcn.ain on account. 
 20. Murray ..Cassidy rendered an Account Sales, charging 3% commis- 
 Mon for selling, 2 / f<,r buying, .^OO for storage, and $10..oO for 
 insurance. Phey remitted the foregoing sight draft on Kellar <k 
 Co., and a draft on the jrolsons Bank for which they gave cash 
 to settle in full with student. 
 
 : 1 
 
108 
 
 DOOK-KEEPINO. 
 
 CHAPTEE VII. 
 
 PARTNERSHIP. 
 
 When two or more persons, by mutual consent, unite either the whole 
 or a part of their property or scrx ices, for the purpose of performing u 
 work, or carrying on a business, and agree to aluire in tlie gaiiis and 
 losses, a partnership is siiid to be formed. 
 
 No contract can properly be called a partnership unless there is commu- 
 nity of profit. 
 
 A partnership may have for its object the prosecution of any lawful 
 enterprise. The contract need not be in wi-iting, as the acts of tlie parties 
 concerned are taken as e\ idence of its existence. Altliough an oral agree- 
 ment is quite legal, it is usually more satisfactory to have a written docu- 
 ment giving full particulars. 
 
 Any person of sound mind and not under legal disability, may he a jtartner. 
 
 An active Jtartner is one who has an interest in the business, and is Icnmm to the public as a 
 partner. 
 
 A silent or dormant partner is one who has an interest in the buHiness, but is unknown to the 
 public as a partner. 
 
 A nominal partner is one who allows his name to be used for the benefit of the firm without 
 having any pecuniary interest in :W business. ' 
 
 A special partner is one who is held liable for only a specified amount. 
 
 Generally .peakinu each niemlwr of a finn is responsible for the acts of the fhin, or of any of its 
 members, these acta bcinj} within the umpe of tlie partnership. 
 
 It is, therefore, in<Usj)ei'sable that the Mimoatgoud faith should be maintained between partners. 
 
 A partner cannot bind the finn by cTintraits dearly out of the ordinary course of business ; but tin- 
 firm is risiKiiisil>le for even the fraudulent acts of any of its uieuibers coniniitled within th» proi.tr 
 limits of the partnership. 
 
 When a new partner is a<linitte<I, he is muler no obligation to pay any debts, or fulfil any contracts 
 of the old flrui (unless he agrees to assume tlieni), as an entirely new partnership is formed. 
 
 Tndinsj partnershiiw must be rrgiftered within the first six months of their existence. Chaneei ot 
 memlM-rsliip must also be registered. 
 
 A partnership may be dissolved as follows : — 
 (a) By the consent of the partners. 
 
 {b) By the death of one of the partners or by his becoming legally inca- 
 pacitated for transacting business. 
 
 (c) At the expiration of tlie term of the contract / or on the completion 
 of the work undertaken. 
 
BOOK-KEEPIXa. 
 
 IM 
 
 (</) At the request of one of the partners when the time is indefinite. 
 («) By the hnnhniptcy of a luirtiicr, or of the firm. 
 
 All cases of rlissolution, exropt those resulting' from pnK-ess of l.iw- 
 bankruptcy, or tlie d.-ath of a i)artner, should Im> rfi,'isf..n'd. Dik- noti.o 
 should he given in the local papers, and also to ;.II j-aitit's wlio usiu.llv 
 dealt with the firm. 
 
 In a partnership business it is nece'isary to keep an account in t lie- 
 Ledger with each partner. 
 
 PAETNERS' ACCOUNTS. 
 
 Credit each partner for his tu- 
 vMiniuit, and f.,r his ve.t ijtiiu (if 
 any) at the time of closing. 
 
 Debit each partner for his ImhUi- 
 tiea iiKsumed by the firm at com- 
 mencing, i his wit/idrawafs, and 
 for his net loss (if any) at the ti.ne 
 of closing. 
 
 When it is likely that several amounts may be with.lrawn during a term of business the best nl .n 
 is to open a private account w.th each ,«rtner. .I.bitinif it for Inns lah-n oJ,oT'iriralet£ty 
 li.n. and cre,Tit..,jf it for Bums i„.v«^,f. These a«„u..ts will be olose<l i,.to their reC4uv«^Kk 
 Accounts, before balancing the Ledger ■esin-cuvB kkkk 
 
 Before taking a new partner into a business the books should be closed so that the tnie state ..t 
 affairs may Ije known to all part es concerned. Su.li a iour« nill nrevent ■.>,v i,.,!! ,, "' ,. ™? """•^ "■ 
 to the finances of the businc"ss. an<i thus save tr,„„,l.. « heuTsetiieTeLtis tobe ,11" ' " '" "'^'''' 
 
 pjlll'ind K^ p« cCnfr^L" """"-"^ ""' ''" ""•*"""^"'' ''"^' *»'!'=»> "« l-»mc8 a sharer In the 
 
 PARTNERSHIP SETTLEMENTS. 
 
 By a partnership settlement is meant the equitable distribution of tl,p 
 effects of a firm at the end of a term of ..usiness, oral the time ..f djs 
 solution. 
 
 When a partnership ceases, the books are usu.illv I..ft m the hands of 
 one of the members of the late firm, until a proper ,i('ijiisfuiciit of the pro 
 <eeds IS made. The books must be bal;inced aiid the losses oi tjaitis, beir.o 
 apportioned according to the tenns of contract, must bo traiistVrre.l'to the 
 partners' accounts, respectively. A financial statement will l„. ,„ado -u.cl 
 a copy of it given to each partner, so that he can make the proper entries 
 in his own books. 
 
 In his own private books, each partner will hoj.i the firm Dr. tor the 
 amount placed to Iiis ,-rrda in tiie parlnefsliip bool s, and make t lie firm 
 Cr. for all sums receive/ in pai/ment from it. 
 
 In the partnership books each i.artner's account fs made Dr for all 
 Talues paid to him by the fin ile the accounts represeut'uu such 
 
 Taluoa are made Cr. ^ 6 
 
no 
 
 H«)OK-KKf;PINO. 
 
 Whi-ri port.iiprs linr»t (Kgiial ainouiiN niid jjive their time :iii>l aihiition to Uir luisiiMsH, it is iu» 
 toiiiary to iliviili' the ^Miiis ntiii Iomsci e<|ii'illv. 
 
 When \ ;iririi-rs iiivrst o<)ii:iH.v, Imt oni- of thrtii iiir.iiaf^cH the ItitftiiirsH, lie ffhculil Iw allowed! a fatr 
 Milary fur his work, tlic lialain'e of tlif iirulllsln'in;; sliarcd aronriliii;; I" itiveslmeiit. 
 
 I( two parties. Bay, invest ti!iei|iial auintiiitH. the one conlrilmtiiii: t\f sirialler sum nhouM pay tin 
 other hiterest on onehaU the difference iietween the invertnieiils. Tliis l)eini{ done, the ^a.u\* uml 
 lODitesahoiilil, in fairness, l>e Hliare<l ei|iially. 
 
 EXERCISE I. 
 
 Tliree men, A, B and C, fcjrin a partnership, investing efpial atnounts. 
 A receives $1,000 and pays exi"iises, ijL'GO ; B receives S.'HiO and pay- 
 expenses, S240 ; V receives $1,200. and pays dver to B, $400. Tliey h.ive 
 at the time of dissoluticm, nids(\ i>ii hand, 8.'{00, which B agrees to take 
 What payments must lie made to elFect a settlement ? 
 
 EXERCISE II.' 
 , Afrril ISth, 1887. 
 
 Smith J'.nd Murray this day agree to carry on a partnership business, 
 tlie gains and losses to 1x3 divided in proportion to investment. 
 Smith invests: Cash, 8700; nidse., $1,300 ; A. Wilkin's draft for 8150 on 
 8. A. Cooper, dated April 1, 1887, at 60 days; balance in favor 
 of P. M. Campbell, 830. 
 Murray invests : Cash, $1,S00 ; balance of John Kennedy's account, $400 
 May 2. Smith withdraws cash, $50. 
 May 9. Murray withdraws ca , 830. 
 
 May 31, The firm has cash on hand, 81, GOO; merchandise in store, $2,000: 
 amount due on personal accounts, $440; others' notes on hand, $800 ; 
 notes outstanding, $143 ; the Expense Account is Dr. for $140. 
 (a) Open the pivrtners' accounts and make the entries in them, 
 (i) Find the loss or gain ; divide it according to agreement and close 
 the accounts. 
 
 (c) Explain the terms, jmrinershi/i, notu'mdl jnirtwr, and silent jiartner. 
 
 EXERCISE III. 
 , J}ine 6th, 1887. 
 
 A, B and C agree to do a partnership business as follows : A is to receive 
 2°/ of the sabs as manager, and B 1% as clerk. A invests cash 
 $2°000; E, merchandise, $1,500; and C a draft at 'JO days <.ii 
 Macpherson & Co., for $3,000, dated May 17. 1887, which i 
 immediately discounted at the Merchants' Bank, at 5% per annum 
 Proceeds placed to the credit of the firm, $ — 
 
 9. Deposited in the Merchants' Bank, cash, $1,500. 
 
 V^^s the gnni» withdrawn are small, comparatively, the amount each ha» in tlm Imsineas befurc 
 clofinK, may be ret(vde<' u his net iuvestment. 
 
BOOK-KBEPINQ. 
 
 Ill 
 
 10. Bought f)f T), 2,000 bush. Wheat at 90c. Gave in paymont, oliork on 
 the ]iank. 
 
 21. Sold to E, .?l,r)00 bush. TVlioat at $] ; 300 bl.ls. l'l<.ur at $•'.. I>- 
 cfivfd in iMiyiiieiit his note at 30 days lor .*1,;")0U, and cash Tor 
 the balance ^ -, 
 
 'it. Ifcught of P, ],.')00 bush. Wheat at S4p. ; 500 bush. Peas at 50.:. (Jave 
 in payment E's nolt; at a disiouiit of b'j\ ptT aiuiuxu lor uuexiiind 
 time. Paid tlio balance in cash. 
 27. Paid expenses with c.isli, 880. 
 30. Sold out the entire Bt(H:k of g<xKla for cash, ?2,500. 
 
 (ft) Open all the necess;iry accounts and nmke 1 lie j)roper entries in them. 
 
 (/() jMake out a statement of Losses and (Jains. Find the net gjiin of cich. 
 
 {(•) Close the account?,. 
 
 ((/) What is necessary to constitute a i)artnership ? 
 
 {f) Name five ways by which a jwirtnership may be dissolved. 
 
 SET XT— SIX-COLUMN JOURNAL. 
 
 A very convenient form of .Tournal D-iy P.ook is here introduced. By 
 referring to pages 111 ari<l ll.'^, it wiU'be sen that there are specia"l 
 columns for cash and merdiandise «lebits and credits. The amounts place<l 
 in the Suiuh ies column are posted ^'y^uvr^'/y every d;iy, and the i)age of 
 tlie ledger to which each is transferred, is ]>lace<l opposite it in the column 
 headed "L. F." At the end of the month the c.ish and menliandise 
 columns are adde<l, and the totals are carried to their respecti\o accounts 
 in the Ledger. The casii balonce m.iy l.'O found e\ery djiy if necessary, 
 and the amount of it CTitered in rc<l ink. The Lo(l:,'er pages of the Cash, 
 and Merchandise accounts will l)e entered in the jiroper column, opposite 
 tlio footings of the corresponding special columns. 
 
 In actual business it will be found advantageous to have a column for 
 every account to which a considcral)le numl)er of items belongs. ]'"or 
 instiince, if notes are handled extensively, there should be special columns 
 for Hills liecelvahle and Hills Puyable. 
 
 The advantages of the special column Journal are as follows : 
 
 (a) Much time w saved by posting totals instead of acparate aiiioiiiits. 
 
 (6) Ttie prolwlMlity o! makiiit; errors is rediKeil to a iniiiliiium. 
 
 (c) The monllily fo(i;iii;,'s i-t the special coliimiis lieiii^' sliewn, comparisons ean easily tje made. 
 
 ((<; Tliis book takes ttie place of the Day Book, Jimrnal, Cash Hook, Invoire Hook atid Sale* 
 Hook. (It is always necessary to keep a bill Book when many notes enter into the fansautiona of 
 .; ijU3incs3.] 
 
 hil 
 
 w? 
 
1 
 
 (2^^ hM^ Ja<o n^^ vtv tiju fi^JA. CXr^. 
 
 112 
 
 BOOK-UOOKINfi. 
 
 ^' 
 
 SET XL— HARDWARE BUSINESS. 
 * Hooka -uBed. — Six Column JournnJ, Jiill Book, atid Ledger. 
 
 (two I'AKTNERS.) 
 
 Jf<i!/ 2ud, 1S87. 
 
 C'""""'' """""") and L. M. Hay l.avo tin's day enteral into a co-partner 
 
 .sliip to carry on a Wholcsalo and Retail Hanlware business on Htrect 
 
 iigrt'eirij,' to sliaro gains and losses atconling to investment. The business: 
 is to Imj eunducted under the tiiin name of (st'iiinfa nume ii,r,.\ j. Hay. 
 (8«,d.„f.m>m.h.rc) investment: Cash, $1,000; A. 13. Matheson'3 acceptance 
 S750 at 1 month, dated April 20 ; \Vm. IVrann owes on acct., $200 ; 
 David Marshall has to ]iis cre<lit $14. Total, $— . 
 L. M. Hay's investment : Owh, $410; ^leichandise, $1,250; John Jamie- 
 son owes on acct., $300. T' ral, $ -. 
 2. Bought of Thos. Campbell, nidse. .vs per invoice, $600. Gave in pav 
 ment aa order on \Vm. ^lann for $r)0, ami cash for balance, $— — . 
 Paid in advance, two montlis' rent, ^(\0, 
 
 4. Deposited in the Merchants' Bank, cash, $700. Sold M. Camen)n for 
 
 cash 1 doz. chest Locks at 25c. a j)iece ; 2 do. jirs. chest H'dles at 
 20c. per pr., $ . 
 
 5. Bought of Massey & Co., goods as per invoice, $400. Gave check lit 
 
 payment. 
 
 Sold Jas. Lambert for cash, 2 doz. Boyal Canadian Wringers at 
 $5; 500 gals. Machine Oil at 5()c. ; 4 doz. Hay Forks at 5()c. ; ^ 
 
 doz. Spades, D. H'dle, at $1.10 ; 4 doz. Steel Shovels at $1. $ 
 
 Deposited aish, $481.60. 
 
 6. Sold Neil Cairns 4 gals Turpentijie Varnish at $1.50 ; 12 gals. Machine 
 
 Oil at 60c.; 4 pkgs. White Lead at $2 ; 100 lbs. Venetian Red at 
 5c Received in payment a draft at 30 days on Wra. Malftlffif^^ 
 
 7. Sold Robert Calder 1 Royal Canadian Wringer at $5.60; 2 prs. Match 
 
 Planes at $l.."tO per pr.; 1 carpenter's Mortise Gauge at $1 ; 4 
 Scan. Padlock's at 50c., $ — . Received iii payment his ©rder on 
 W. Howson. 
 Shipped to F. McKay, St. Catharines, to Ix; sold on our acct. and risk, 
 goods invoiced at $800. Paid shipping expenses on the same witli 
 check, $50. Paid cash for stationery, $2.50 
 Sold Jas. Johnson, 2 doz. Spades, D. H'dle, at $1.25 each ; 2 do/ 
 Shovels at $1 each. Rei-eived in payment a check on the Bank ot 
 (-Montreal for $40, and c.ish for balance. 
 Disb&anted A. B. Matheson's acceptance ^s per B> B. at the Bank, at 
 Ji *^® ^''^^ ^^ ^/o' J^*i"^=t!eds deposited, $ — . ^ 1 .(f f ^ *f-f. t 3. 
 ^i^'xPaid for stationej^r^nd po-stiige, $1.50. 
 
 1^ 
 
 • The pupil wfn understand that the invoices must either he pasted In a book for the purposs or 
 properlr filed, so that the.v may be refernnl to convenieotl/. A Check Book and Bwik fmm Book Buat 
 •Ise b* kept to nhew the dealing with the liank. 
 
'j9s%fi ->'//*. 
 
 y / 
 
 /Ti'(0 .r^. 
 
 BOOK KKKPINd. 113 
 
 Ifi. Uoceive*! from John Jaiiiies..ii on a.ct., hii ..nl.-r on .l..|iit Wilson for 
 «70; W. Barker's note at 2 niotiths, dattMi May 1, I MM", f..r !?:'•< i ; 
 »nd his own note at 30 days for Iwilance. 
 
 18. Paid <»ali ft" stationery, r)(lc. 
 
 20. F. McKay rendered an" Am.unt S.ii.'s <.f the ko<k1s slii|.t>e»i to him on 
 
 the 8th inst. Not |>rt.fee<is, 8900. He remittal a draft on iJank / 
 
 of Commerce, purchaseil with that amount. ' *-*&/■), —^ 
 
 23. Recei-reil from W. Mann, on account, his check on Bank of Ilamilton ^"^ 
 
 flOOj W. Mill's acceptance of 30 days siirht. dated M.iv II 
 1887, for 830. ./ o • . , 
 
 25. Shipped F. B. Baker, Hamilton, to be sold on our account and 
 mk goods invoiced at $600. Paid transportation charues with 
 check, $20. 
 
 27. Sold D. Marshall on account, 2 Jack Planes at $1 ; 1 Try Plane at 
 
 J1.60; 3 Jointers at $1.H0; 6 Framing Chisels at 81 ; 3 Hand 
 Saws at 81.50; 1 Hip Saw at 82. 1 Plumb and Level at 82 • :{ 
 Bnck Trowels at 81 ; 4 Plasterir„' Trowels at 81:25. 
 
 28. W. Howson paid his order receivwl from \\. Calder on the 7th inst., 
 
 8— • 
 
 30. Drew on F. B. Baker at 30 days fur 850. 
 
 31. Paid clerk's salary, fSO. 
 
 Invenlory : 
 
 Mdse. — Goods unsold a^^.) ^q 
 
 Expnge.— One month's rent paid in advance id fui 
 
 Shipment to Baker \, .'.'.'.... 6^0 00 
 
lU 
 
 UOOK-KKKIMNfi. 
 
 
 \i 
 
 b I 
 
 o 
 
 <5) 
 
 ^ 
 
 "? •- ^- ?» 
 
 ■a a; § 
 
 ^ -^ I 
 
 e C n 
 
 « -3 *' ^ 
 
 • u "a 
 P s 
 
 ^ o a 
 
 
 C § 
 e a 
 
 II 
 
 C5 
 
 
 Si-? ; 
 
 s It 
 
 G ^ 
 
 1^ 
 
 4 
 
 
 .'^ 
 
 S 
 
 I 
 
 a 
 
 
 ■'^l 
 
 i 
 
 s 
 
 
 
 m 
 
l.iHiK KKKIMNfi. 
 
 iiri 
 
 s>: 
 
 
 .«!■ 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 § 
 
 
 1 
 
 
 
 
 
 5 
 
 
 "" 
 
 ._.- 
 
 
 
 
 
 
 S 
 
 ? 
 
 
 
 ,5> 
 
 
 
 
 
 
 
 
 
 t 
 
 t« 
 
 
 
 — 
 
 — _____ 
 
 
 
 
 
 
 
 
 5 
 
 
 . - 
 
 __. 
 
 
 
 
 4 = 
 
 
 
 
 
 
 
 
 
 ac 
 
 
 : 5 
 
 
 1 
 
 
 
 *v« 
 
 
 
 
 
 
 
 
 
 ft-^ 
 
 ►• 
 
 
 
 \ 
 
 
 
 .i' \ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 -*- 
 
 
 
 ■=; 
 
 
 
 
 
 
 
 
 
 ^ i 
 
 
 i 
 
 t» 
 
 
 
 
 
 ^ 
 
 sT 
 
 
 
 
 
 
 
 ^ 
 
 
 ■2 1 
 
 
 c 
 
 
 
 r 
 
 ^-1 
 
 
 i 
 
 
 
 i -5 
 
 
 c 
 
 i^ 
 
 it 1 
 
 O O 8 
 
 5 ,. S 5 
 
 ■*• 
 
 
 
 
 <^ C -5: 
 
 
 
 S 
 
 'J 
 C 
 
 1 
 3 
 
 s . 
 
 ^ 1 ' 
 1 C 
 
 1 
 
 s2 
 
 
 
 s 
 c 
 
 
 
 
 
 ^j 
 
 ;; 
 
 
 
 r 
 
 
 -1 "'^ 
 
 
 •- 5i 
 
 
 
 
 
 ^■^ ■* %^ 
 
 >** 
 
 •^ 
 
 iC 
 
 
 •^ 
 
 
 £<! 
 
 
 f. 
 
 
 : s 
 
 i 
 
 s 
 
 "-^ 
 
 
 
 o. 
 
 4 
 
 
 
 
 1 
 
 — 
 
 5 
 
 
 - ■ 
 
 
 
 
 
 
 
 
 
 3«- 
 
 « 
 ^ 
 
 
 
 
 
 
 
 
 
 c 
 
 
 
 
 5» 
 
 
 
 
 
 
 
 
 
 '< 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t^ 
 
 
 
 
 ?^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 V^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ~, 
 
 
 - 
 
 
 
 
 
 
 
 C 
 
 
 
 
 ^ 
 
 
 fS 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •< 
 
116 
 
 HOOK-KKKPlHfl. 
 
 Asa n»«w iwirtiier in to Iwi tuki'ii into tho con. ern, the l«M)ks will »,>• 
 iIohjnI,^ finil II stiiti-m.-nt H;ii«win« tlio condition of tlm lmsin«*K.s inwl*' 
 out. Tliis lM>inj{ ilono fiiitlifnlly, tli.-rc can Ik- no .lisput.^ uft«'rwiinlM in 
 r.'j;.inl Jo tlu- Miincliny of tin) jmrfni'iH at th« tini« tli« now ivirfniTsliin in 
 foiinrti. 
 
 Thf pupil will iwf th»t it i« «b«<iliit<-ly niHvii»ary U> .Iokh ihi- l<m an<l rain «.if.i.tiU In ofH»r to ri 
 h iiii'iiiliirot Ihfflriii rmlit f.ir lii» nhnre «.( the net ifalti, or li. il.liit him for hiaihkra of the n 
 
 net 
 
 K*NM, tis the niM' nitty Ih*. 
 
 AIiIkmikIi it in iMi«tiHimrv whin n<liniltinir n imrtner, to clone the reaoiirrp ami liatiillty u'cniinlii 11 
 in not in.li»|H>n*il>le that muh i.hoiil<l In. .lone, f„r th.' Dimple reiiw.ii that the eloHii„( „f .n luwoii'nt 
 nhewintc l.y the (liltewnc Ktw.en itn iiiileH, a rtwinnw or liuhllitv. iloei not effect any I'mnvrtaiii 
 ehiuiKe, u the tMUaiiu; mur t Iw liroutfbt down on n!-u|ienintr the a<»}unt. 
 
 BALANCE SHEET. 
 
 /Mtiident'iaiimamrv E, JTnjM 
 
 {Taken May 31, liiS7.) 
 
 May 
 
 31 
 
 1887 
 May 
 
 31 
 
 Rejtouree». | 
 
 Cash on hand. . . . 
 Milne .(ait firr /ill'.) 
 lii/ln Itecriralile . . 
 ISal. of ill /lonll ill 
 
 MerrhitiilH' liiiiik 
 PemoHiit acrtn. *•<■• 
 
 reivable 
 
 Ship't to Baker ! 
 
 (/«».) ' 
 
 EdXpenM (Inv.). . .. 
 
 Losses. 
 
 lid. and Dis* . . 
 Exjiense 
 
 yet gain to credit 
 of {Student's 
 name) 
 
 Net gain to credit 
 of Hay 
 
 /, 
 
 117 
 47 ..'Ho 
 
 1460 .17 
 107 60 
 
 r,so 
 
 SO 
 4Hi4 
 
 64 
 
 66 
 
 108 
 109 
 
 285 
 
 14 
 
 18S7 
 
 May .11 
 
 lAiihilities. 
 
 {Student's name.) 
 Set worth 
 
 /-. M. Hay's Net 
 Worth 
 
 Halaitee due F. B. 
 Baker 
 
 1^:87 
 May 
 
 ■n 
 
 Qaini. 
 
 Merchandise. . . . 
 Ship't to McKay. 
 
 S044 
 SO 
 
 4164 
 
 ssr, 
 
 60 
 
 S85 
 
 4<> 
 
 ' TWa inolodM the Exohftng«. The student will open an Exchange Aooount for the month of June. 
 
 ^ ■ 
 
nUOK KKRPINn. 
 
 SET XL -Continued. 
 
 117 
 
 Juno 1. 1»«7. I. M. ITny .in.l (^-.-..n.m-h,r, ^ ,,,^^,. ,;,.^ ^,^^^. H,Jmift*vJ 
 H. P. Carey a.s ii partiu-r, t.. carry on h Wh..|..w,l,. and K».»ail 
 IlaniwHre huHiricsH umlcr tin- Jinn tiaiiic < if (■""■'"""•'""•'"- nt.. \ ||„y 
 & Co. H. V. Curvy puts into t h.. I,usin.-.SM, casli, .4-J.r.0(). Tli.'v'aui..,. 
 to sharo gairiH hikI losses in j.roportinn to f ho rapital inv. •^t.•."| 
 
 1. Diswrnntwl Harki-rs accvptance, as j)fr JJ. H., at 6,-, tyer nunnw. I'nn 
 ohmIs n'c-«'iv»'ii in «-aKh, - -. 
 
 •J. liouffht of Thos. CatnpJM-ll, l^.mlon, an inv..i<'.* of ^kkIs aiiioimtin.' to 
 f.'ifin Acoeptwl his draft at lU) .Uys for thi- sain.'. Paid fi.i-hi 
 $14.50; <lrayag«, $2. " ' 
 
 3. Depositwl in Hank, rash, $.1,000 "Sold J.,.. Johnson on a.vount 1 
 ParlorC.N.kStov.-, $1 J; 1 Kitchm Sto\r. «>;j(». nou«ht of |i..,',iv 
 & Co., Toronto, k.mkIs as jn-r invojc.., .*7-'0. Krinitt.-d a |:,,n'k 
 draft for tluit a tint, ptircluiscd w ith chfck. ' 
 
 I. Rpceiv.'d from K. \i. J!ak.-r, an .A.vt. S.tl.-s of Ih.' «.««!.- ship,K.d to him 
 on the :.'.-)tli ult. N.-t pr.K-.-..ds. fijlto. Mr r.initt.-d a draft on th.- 
 Merchants' JJaiik (whith we imini'diat.'iv d.-j.osit«.<h for tin; sum 
 less J/. ' ' 
 
 0. Received from J. Wilson, cash in full of accr)unf, .« . Paid for ad 
 vertisinj,', :?.'); j>ostaj,'e and stationcrv, .*!..")(». 
 
 7. Sold Neil Cairns for .-ash, L' «lo/.. Spades, J). Hdle, at .*l..-)0 each- .'i 
 «loz. Steel .Shovels at i*l e.uh, .* . - > • 
 
 H. Sold W. Mann, 1 Circular Saw, .*!»(); 4 Rif> Sav. • it ?!-J : .1 Fnuiii:.i{ 
 Chisels at §1. Received in full pavment his ilu-ck on the .Molsons 
 iiauk, S -. 
 
 9. Hay withdrew from the business, cash, ^Gli.Tl. pu'c-ivcd from W 
 Malcolm, cash for his acceptance as jxr IS. I!., .5 - 
 
 11. Sold D. Marshall, .m a<c(.unt, .l Try Planes at')<l.t;0: ;{ H,in<l Saw, 
 at?l..^)0; 10 packa;;es White lead at *■_> ; I()j,ral>. Machine Oil ;,| 
 60c. ; 5 ^'als. Tuij)entine V.iriiish ;it .fl.f.O. 5-- . 
 
 1;?. Prepaid with cash iiiv acceptnnce fa\or of Thos. Camphell Vxitc G ' "^l '^' ^ 
 J )eposited cash, 8r)0. ' ' 'y~> 
 
 17. Received from \V. Mann, cash i-i full of account, %—. 
 
 18. nou-;htof Bailey k, Son, Toronto, an invoice of {,-,hk1s a mount in-; to 
 
 $750, trade <liscouiit f)f 5^ beini,' allowed. Remitted a draft'^for ») . 
 the net cost, for which we issued a check. I'aul frei.dit .*1.". • 
 tlrayage, .«!3. e . - 
 
 20. Received from D. Marshall on account, cash, .?.30. Paid for adver 
 tising, $5. Sold Alex, Monrw on account, 1 doz. Mortise Locks 
 %'1\ 'iO ]hs. Shiuirle Nails at 4c.; 100 (';t,na-'e liolts it "'c 
 lbs. Putty, 4c. i -. o • - 
 
 22. Sold A. M. Mallory, on his acceptance at 00 d.ivs, 6 Hand Saws at 
 SI. 60; 10 Steel S.|uares at !ei..V); i' doz. Jet Knr.bs at $5 per 
 doz. ; 2 doz. Oil Cans at $4.20 j)er doz. ; 15 packages White I^ad 
 
 !U 
 
118 
 
 UUOK-KEKl'INO. 
 
 a- 
 
 m 
 
 M 
 
 I 
 
 •?8. 
 
 29. 
 30. 
 
 24. Receivp<l from Alex. Monroo in full of account, 2 cords Wood at $2.8( i 
 Hold S. W. Coop«;r, 2 ScTK)p Shovels at $1.50; 1 set Auger Hit>, 
 $4 ; 1 Nickle-plated Brace, S2.r)0. S -. Keeeived in payment iui 
 order on Thos. Murray, for which he iuiniediately jjaid cash. 
 
 Discounted IMallory's acceptance as per B. B. Rate, 6 '/. Proceed. 
 
 in cash, $ — . 
 
 ^st„,i.„f. name her,') withdrew from the business, cash, .S44.40. Sold J I. 
 P. Stanley for cash, 1 set Plated Knives and Forks, 8.5.50; I 
 Bronzed Metal Knobs at $1 ; 4 Mortise Locks at 40c. $ . 
 
 Loiined IT. C. Corbett on his note at 10 days, .SGO. Sold A. K. Sim 
 nions, 1 Cook Stove, $40; 40 lengths Pipe at 20c.; .1 doz. Tc. 
 Spoons at 86 per dozen; 12 ililk Pans at 20c ; 5 Milk Pails ,ii 
 40c. Received cash, .^20. 
 
 D. Marshall failed and made an assignment, his creditors Injing paid 
 60c. on the dollar. Received cash for our share, .? . 
 
 The partner-ship being this day dissolved, it is agret-d that the Student 
 will cai-ry on the business in his own name. He assumes all tli.' 
 effects and liabilities of the late firm, and has to pay the retiriii'.' 
 partners their respective shares of available funds, the balance t 
 be paid in 3 montlis. 
 
 Inventory. 
 Goods on hand $1,968.85 
 
 REMARKS ON THE BALANCE SHEET." 
 
 A Balance Sheet, being a summary of the facts contained in a dealer's 
 books, arranged in such a manner as to show at a glance the state of his 
 business, must exhibit the following : — 
 
 1. The Ledger 'Titlfs. 
 
 Tliese should he jriven in full when it is conviiiicTit to do s.i When there is a considerahle numi»r 
 "7*?nil Aooouiits thiy niiiy be divided into "I'crsonal AcinmuU Receivable," and " Personal Ar- 
 <x)unt8 Payable, in order to save space. 
 
 2. TJie Ledger Fullos. 
 
 3. The Dr. and Cr. footings of each account or group as explained in(l} 
 
 4. 77(6 Inventory. 
 
 5. The Losses and Gains. 
 
 6. Tlte Proprietor's (or -partners^) net Capital.. 
 
 7. The Resources an I Liabilities. 
 
 The student will dose the Loss and Gain accotmts and make out .i 
 Balance Sheet of the following foi-m ; — 
 
 •The student must not confound " Balance Sheet • and " Trial BaUnoe." A Trial Balance ia used 
 manly to twt the oorreotneM of the Ledger. w»u«b m luwu 
 
mj^'^-K'^^^^^M^ 
 
 BOOK KEEPINrj. 
 
 11! 
 
 •n 
 
 Ok 
 
 '■- 
 
 •»l 
 
 #■■. 
 
 
 *• 
 
 ■^T 
 
 
 
 
 (O 
 
 3 . . ^Jl'^isS^^I'^l 
 
 vTrTfTrjTTr 
 
^¥*^ 
 
 ^,. 
 
 120 
 
 HOOK KKKIMNIi. 
 
 ■I 
 
 M 
 
 As the partnership has lieeri dissolved, it is necessary fur the hook keeper 
 to close the accounts that shew losi<r/> or gains, and carry eacli j)artn»'r^ 
 share of the net gain, or net loss, as the case may be, to his account. Tlii^ 
 being done, a JJalaiice Sheet like tiiat on page 1 16, will l)e given to ea<li 
 partner, so that he can make therefrom the proper entries in his own b<H)k>. 
 Although tlie form referred to is not so elaborate as might be drawn up. 
 it contains all that is reijuired to give a s.-itisfactory view of the tinancc> 
 of the concern. 
 
 The student will, according to agreement, pay each of the retiring piirt 
 ners, his share of the available funds, that is, the cash on hand, an<l th<' 
 sum deposited in the Merchants' Bank. 
 
 As the student now uses the books formerly kej)t by the firm, he will 
 reganl the partners' accounts as ordinary personal accounts, <lebiting them 
 whenever payments are made, and crediting the account or accounts reprc 
 sonting the value parted with. 
 
 At the expiration of the three months, the accfumts of the retiring part 
 ners will be debited for enough to close them, full payment being then made. 
 
 JOINT-STOCK COMPANY. 
 
 A Joint-Stock Company is a corporation legally authorized to carry on 
 a business or perform a work, such being within the limits prescribed bv 
 law. The capital of the company is divided into shares, and the indi 
 viduals composing it are, therefore, called shareholders. The profits arc 
 divided in proportion to the number of shares heli' All the business of 
 the corporation is transacted by a U' ard of Directors, whose (jualiiications 
 and [)owers are defined by the Act. 
 
 Tn an ordinary partnership, each member is liable to the full extent of 
 his means for the liabilities of the firm ; but in a joint-stock company, each 
 shareholder is liable only for the amount of his unpaid capital. Tlii^ 
 explains the meaning of the term : " Limited," which is added to the 
 names of companies, as for example, " The Copp, Clark Co. (Limited)." 
 
 mi 
 
•M::: 
 
 BOOK-KBBPIIfO. 
 
 19) 
 
 CHAPTER VIII. 
 
 SINGLE ENTRY. 
 
 Wl^.. books are kept by Single Entry, on]y personal accounts apppur m 
 
 luJt^"- ■ ^^ '" ^^'"°"'' '^'^•;^^"'-*'' '^"'' t''« " book of accounts "^Sl n..fc 
 furnish any information regarding ..ash, notes, ic, only in so far as the 
 
 transactions affect accounts kept with other persons. 
 
 THE DAY BOOK. 
 
 o.™*^^''''"''"!" *'"*"'"' "^ '''^ transactions which affect personal 
 accounts and no others When a dealer gives a person value, without 
 receiving e.,ual value at the ti,„e, he should make the jn-rson Dr Whe, 
 a dealer gets value from a person without giving ec,ual value «/</,. thJ, 
 lie should make the person Cr. 
 
 The form shewn on page 1 24 will he foutid very convenient: it n.av al,>o he 
 use.l to test the correctness of the posting. There a.-o two money columns 
 the one to the left receiving the debits, ami the other the credits arisinu 
 out of our dealings with persons on account. .As every amount in' the 1), 
 column must be placed to the ])r. si.le of the T^^lger, and every amount in 
 the Cr. column must be pl.-ued to the Cr. sid,-, the difference between the 
 totals of the Day J'KH.k must be e-pial to the diff.Ten.e betvve.-n the sides 
 ot the Jjedger. 
 
 If these do not agree the posting has not lieen done correctlv and the 
 error or errors must be di,sco\ered bef tlu-r progress is made'. 
 
 THE CASi )K, 
 
 This book is fully described on page i,,. As there are many ••ash tr-ms- 
 actionsfcr which there is no Day Book reconl (that is, whi.h do ix.taffert 
 personal accounts), it is absolutely necessary to keep a Cash li.K.k It 
 should be tested at the close ..f each day's business, and ))alanced fonnnH,, 
 at least once a week. The difK-rerice between its sides should a-Mvo witli 
 the amount of cash in hand, as found by counting.* 
 
 .K. S"'"*';'"*' '' is necessary to enter a transactinn in both the Oish Bot.k ami tlie Mav H<,„k Thi« i. 
 he case when cash is re<«,v«,l or pai.l ,„. „.r„u„l. as all entries afTeetin^ personal a'cuulu^t J,»*ar 
 111 the Day Book, in order that thiy may fln.l their way into the Ledger. " 
 
 When cash is received or paid on a note, an entry must be made in both 
 the Cash Book and Bill Book. 
 
 THE BILL BOOK. 
 
 In this book are entered the particulars of all notes, drafts, ^tc, belonging 
 
 to the business. See page 58. By means of the Bill Btwk the amount 
 
 -t itnersnu/rs on Liiui, as well as ih.il ot" ,>ar /«-,/,'.y ontMnn-lin'j, .-an easil- 
 
 be determineil. ' 
 
 UkenW.to'^'Jd.'r.To'L.'*"'^*''^ '" "" '""' ■■• "*"^ - °^ °" hiu.dr;;.ru.u«t. therer^rTli 
 
:'^\.^4%... 
 
 122 
 
 BOOK KEF.PlNf. 
 
 t 
 
 When a nnte is ■voeived or given on armuni, an entry of it must l>c made in lx)th the Pay Poolt 
 and the Hill IJook. Why? 
 
 THE INVENTORY BOOK. 
 This book is us<'<l to ivconl the qiuintitirs, prici-s, Jcc, of ^oodn rewain- 
 ing utisold lit the etui of a tt-nu of business. 
 
 At least once a year evt ry pi-udent l)usiness man makes an estimate of 
 the <,'()()'ls on hand ;ni(l enters the particulars »if them in a book for the 
 purjmse, called tlio Inventory r.<M.k. Great care sliould be taken to give 
 the unsold i;o.Mls the T.rc,K'r value, because if this were r^t done, the con- 
 s»-(iuenco would be the (hifeat of the ultimate object in view, viz., to know 
 the true state of affairs. 
 
 EX_'IjANATIONS. 
 I5y taking the; results obtaine<l from the J.od(j>i\ C«xh Hook, tiill linok, 
 and Inrvntonj JJook, a full Statement of Resources and Liabilities can be 
 made. If the resources are grc.iter than the lial>ilitics, the diir.-rence 
 represents the Net Worth. ]f, on the other hand, the liabiliti.'S arc 
 greater than the resourcs, the diHerence represents the Net Insolvency. 
 
 No Statement of Losses aiirl tlaiiis am be mad(!, but the Xft dnin or 
 Net Loss may be ascertjiined, by tiiKiing the difference between the capit.il 
 at coiinneii.ciii.ij and the capital at c/osimj. 
 
 It is evident, therefore, that Ilouble Entry is the moie complete of the 
 two systems. AVhile it fuiiiishes informatit)n in regard to vmurccs ond 
 Imhilities, it shews in addition to this, how gnina ami lossen accrue. 
 
 In .some kinds of bu.siness it may be desiral)le to keep other books than 
 those mc^ntioned, such as Invoice I5ook, Sales P.ook, Check Book, itc. 
 
 SET I.— GEOCERY AND PROVISION BUSINESS. 
 , June 1, 1887. 
 
 {f"P"!'.?™?''":' ) has this day commenced the Grocery business, investing as 
 follows: Cash in s; f", -^'KISO ; ca.sh in the Standard Bank, $600 ; 
 Gowls in store, §150 'Jhas. Wheeler owes on his note datefl May 
 2, 1887, at 30 days, $Ci ; J. W. Thompson owes onacct., §50 ; H. 
 J. Clark owes on acct, $75. 
 
 'I. Bought of Jamieson k Co., on my note at 10 days. Goods as ^yer invoice 
 No. 1, amounting to $200. Cash sales, $34.50. 
 
 3. Sold H. C. Thomas, 100 lbs. Gian. Sugar at 9c. ; 20 lbs. Y. H. Tea at 
 60c. ; 30 lbs. Currants at 6c. ; 12 lbs. Starch at 8c. ; 110 lbs. O.at- 
 meal at 6c. ; 30 lbs. Butter at 18c., $— . Received in part p.iy 
 ment, cash, §10, the balance to remain on account, § — . Deposited 
 in the St.irid.inl B.uik, $1000.* Baid Cooper k Smith, per check, 
 $20 for rejwirs. Cash saies, $32.30. 
 
 • It is not neoessarj' to make any entry of this. The Bank Book will show the amounts depcsiteil 
 and the Check Book the balance to niir credit at the bank. See pane 136. When a check i» iamsd, th« 
 amount will be placed in the Or. culuimi ut tiit: C. B 
 
 .!_ : " 0-" 
 
^Fjt.Am:. 
 
 riOOK KI.K1'1N(;. 
 
 123 
 
 4. 
 
 6. 
 
 10 
 il. 
 
 ]3. 
 
 14. 
 
 15. 
 
 J. ^\. 'Ih..riip.son j.ai.1 u.i .•uvuui.t $:5(), with an onl<-r <m 11. .1 Cl^irk 
 %viu.li .Mr. (^laik iiMii.c.liat..|v i.avs willi cash. .S..M A. M UiitUn 
 bury on lus nut,, at 10 .lays, -U) lbs. Ainion.is at, -:.,■. ; '1 ll.s. Cl«vo> 
 atOOc; '.. lUs. Pulv. Hug ,- at ll'.-.; 10 ll.s. lilk. IVj.,,,-.- at 30r 
 5 bars Soap at I'.V. ; 25 Ih.s. Java CufT,.,. at -JO.-.; 40 ll.s VaV 
 Rais.ns at 14,-. * _. Chas. ^^•l„.,.ler .vn,itt.-d a .l.aft on t\u- 
 i\ltM-cliaiit.s JIaiik m payin.-nt of his note as jH-r P,. j; .-< 'p.^\^l 
 
 fa.sh for Coal Oil for uso. of .Mor.., 8.'?..">0. I'.ou-ht of'c A Da'vi^ 
 on acct., a A\ ntiris IVsk for onic-c. .•510. Ca.sh sah-s <*->0 
 
 I)opoMt..,l i,i th<3 Stuuclanl Dank, cash, 8100. JJoM^ht "Jf Tavior .t 
 N.n, 1,o,h1s as per invoice No. i>, amounting to .'S.340 !iav«- in 
 paynient iny <'hc..k. Sol.l ]f. C. Thomas on ac-t., 30 lbs. JJla,-k 
 loaat 60r. ; IJO ]l,s, Su-ar at KV. ; 10 Ihs. Starch at ll'l.c • 4 11.. 
 Nutmogs at. rr-c. ; 50 lbs. Pice at 5c. ; 25 lbs. Cheese at'lGc, §- 
 Cash .sales, .?:?0. 
 
 Paid cash for Advertising, .^lO; fur Fuel, .82.50. Deposited in the 
 Mandard Pank, .^]00. Withdrew from the business, ca.sh, S:>U 
 Cash sales, i<L'!i.t)0. ' 
 
 Pought of Alex. Stewart, r.,„„U as pc- inv-M.-e Xo. ^5, amounting to 
 v40(» (.ave ,n i.ayment my che.-k for .:?L>00, and my note at 20 
 <lays tor balaine, .8 . Cash sales, •'! SO 
 
 Sold l.-u-hlan .Mac-Lean, (JO lbs. (^leese at 1 .5c. ; 45 lbs. Currants at 10c • 
 - doz. bars Soap at Sl.50 per <loz. : 15 lbs. Japan Tea at 80c. ; ] - 
 
 60e., 10 lbs. Pot Parley at 5c.; 25 lbs. Putter at Ific.; 30 lbs 
 Gran. Sugar at <Jc. ; 50 lbs. Pn.wn Sugar at 7c. Peceive.l in pay- 
 ment his check tor 820 and hi. note at 2 months for balance, 8^1 
 Cash sal(-s, .><l2.;jO. 
 Paid C. A. Davis on act-t., cash 810. Received from H. C. Thomas 
 on acc-t., an order on A. S. ]Murdoch, for §30. Paid cash for Sta- 
 tionery and Postage, J:rI.GO. Cash .sales, 821 40 
 
 ftfrn"*' n'"''"'- ^-'"'«'-""' ^'<^^1S as per invoice No. 4. amounting to 
 blOO. (..ve in payment my check for 8100, the balance to remain 
 on acct. .Sold M H. ^^filler on a,-ct., 30 lbs. Butter at 18c. ; 12 
 lbs. Sugar at !)c., .S— . Cash .sjiles, 825. 
 Paid .Lunes Cameron's order favor of S. D. Halm, in gcxxls, 825. AV 
 
 825 50 ^'"''^ *''' '''■'■^* ^ '''''■'^' ^^''^''^ "^ *^-^^' •^— <^''^'' «^J'-^' 
 
 Dep.>s^te.l in the Standard Bank, 8120. Paid for drayage, cash, $3.40. 
 
 Oash Siiles, .8.3/.20. . <= > > ■* 
 
 ^"l^J.^^i'^J"?^ C''?i""-^ <''-!^,^^^ I-r invoice No. 5, amounting to 
 $-40. Settled with him in full per check, — . Cash sales, $2U.lO. 
 
 Invrntt/iy. 
 
 Mdse. unsold •! /iKn k^ 
 
 Office Desk *1.065 5fi 
 
 9 
 
124 
 
 BOOK-KEKPINd. 
 
 DAY BOOK.— SET I. 
 , June 1st, 1S87. 
 
 Dr. 
 
 Cr. 
 
 ^ Pupil's name hen ) jtag this day eommtnced the Grocery 
 ami Provinon biijiinf.na. 
 
 t piipira name \ fjfm 
 
 By the/iMowing investment : 
 
 Cash in nn/e, $11.50 
 
 " in Standard Bank, 6>K) 
 
 Afdite. OH hantl, loO 
 
 ('has. Wheelf-r's note iiM )irr B. /I. 64 
 J. tV. Thontpsvn on a/c, .'>0 
 
 H.J. Clark on a/c, 7-' 
 
 V. V, '. Thompson, 7>r 
 
 To Balance, from old a/c. 
 
 H.J. dark- Dr 
 
 To Balance from old ajc . 
 
 ]{. a TfwTnas Dr 
 
 To 100 lbs. Gran. Sugar (a. He, 9!) 
 •' 20 " r. //. Tea (cO tiOc, 12 
 
 " SO " CurranUi @ 6c , 1 SO 
 
 " 13 " Starch Ca' He, 96 
 
 "110 " Oatnwai@ 6c., 6 60 
 
 " SO " Butler @ 18c., o 4" 
 
 Cr. 
 
 By Cash, in pari ixnjment 
 
 4 
 
 J W. Tfiompson Cr 
 
 j By Cash on a/c 
 
 C.A.Davis Cr 
 
 By Writing Desk for Office. 
 
 — S 
 
 H.C.Thomas Dr 
 
 To SO lh,<i. BIk. Tea at COc, 
 
 " ISO " Sugar @ lOc, 
 
 >• 10 " Starch® 1 Sic, 
 
 " 4 " NtUmega® 7oc., 
 
 " HO " Bice® 6c., 
 
 " So " Cheese @ 16c., 
 
 A mounts forward 
 
 918 
 IS 
 1 S5 
 S 
 
 S 60 
 4 Ou 
 
 40 
 
 sol 
 
 76 
 
 51 
 
 * Thlt n*me apiwart in tha Ant entry. Why haa it to b« repeated her*. 
 
 ?rt\.9 
 
 10 
 
 so 
 
 10 
 
 ilS'J 
 
 
BOOK-KKKl'lNr.. 
 
 Jiuie 7, issr. 
 
 Ammniln hronijht /unimrd 
 
 ( Pupil"! BUat \ Tj 
 
 To Caiih W:t/itlriiir„ 
 
 JO 
 
 C../1. Darns J)r 
 
 To Cash on n/r . 
 
 i. S. Mil rdoch Br 
 
 Toll. C. Tlioma»' Order on him 
 
 H. C. Thomas Cr 
 
 By an order on A. S. Murdoch . 
 
 Jas. Cameron Cr 
 
 Bij Mdse. as per Im-oire. jVo. ^ 
 
 l>r. ■ 
 
 To Check, jiart pai/ment 
 
 JJr. 
 
 -'"/ J/ 
 
 s^ 
 
 j/> 
 
 so 
 
 TT. H. MilUr Br 
 
 To SO lbs. Butter (a) ISc, 
 " JJ " Suaar (ai 9c.." 
 
 Jas. Cameron 
 
 To 2>ayment of his order in md-ie. 
 
 Suijar (^ Oc, 
 13 
 
 Br 
 
 5 40 
 1 OS 
 
 ion 
 
 125 
 Cr. 
 
 iS 
 
 M\ II. Miller Cr 
 
 By S cards Wood @ 1.75 
 
 Jas. Cameron Cr 
 
 By Mdse. as per Invoice Xo. 5 
 
 Dr. ~ 
 
 To Cash. Check on a/c 
 
 SO 
 
 ICO 
 
 S7S 
 
 ',0 
 
 676 199 I scji \so 
 
1 'JC) 
 
 BOOK KKKFINH. 
 
 18S7. 
 
 June. 
 
 June 
 
 
 s 
 
 
 n 
 
 
 
 
 n 
 
 
 I') 
 
 
 *i 
 
 
 a 
 
 
 11 
 
 
 IS 
 
 
 
 June 
 
 CASH BOOK- 
 
 SET 1. 
 
 Dr. 
 
 Cr. 
 
 To amount in Safe 
 
 " " Bank .. 
 
 " Mdxe. Sales this diiif 
 
 " //. C. Thomits. on a,c 
 
 Ill/ Coo/ier fb Smith, for vji'iim (rhrel:). . . . 
 To Afilse. Sales this daij 
 
 " J. W. Thotnjtson, on ajr 
 
 " ('has. Wheeler's note us j„ r JS. Ji 
 
 Bif Expense. Coal OH for store 
 
 To Atdse. Sales this da>/ 
 
 Hi/ " Bought of Taylor it Son (check) 
 
 To " Sales this da;/ 
 
 Jiy Balance 
 
 To Balance lyronfjnt doion 
 
 Ill/ Kxjtense. Fuel, $i.;'iO ; Adnertisim/, $10 . . . 
 
 " (''"P"'" "»""■•) AmoiiiU withdrawn . .' 
 
 To Afdse. Sale's this dat/ 
 
 Hi/ " Boiiijht of Alex. Stm-art (check) . . . . 
 To " Sales this dai/ 
 
 " " Sold J.. Maclean '. . 
 
 " " Sal's this day 
 
 By C. A. Dneis, on a/c 
 
 " Expense. I'oslat/e awl Stationery 
 
 To Mtlse. Sales this day 
 
 (( II - II II 
 
 By Jos. Cameron on a/c (check) 
 
 To Mdse, Sales this day 
 
 By Balance 
 
 To Balance brought down , 
 
 By Expense. Drayage , 
 
 To Afdsf, Soles this dau 
 
 By Jos. Cameron on a/c (check) 
 
 To Maee, Salfs this day , 
 
 By Balance . . 
 
 UoO 
 
 
 
 (100 
 
 
 
 .V, 
 
 r,o 
 
 
 JO 
 
 
 i:o 
 
 32 
 
 30 
 
 
 30 
 
 
 
 64 
 
 
 3 
 
 sn 
 
 
 s;i> 
 
 30 
 
 
 inor 
 
 1970 
 
 SO 
 
 1G07 
 
 ,';ii 
 
 so 
 
 00 
 
 SI 
 
 SO 
 
 ^','y 
 
 
 n 40 
 
 .no 
 
 1763 
 
 1410 
 37 
 29 
 
 1476 
 
 10 
 
 SO 
 10 
 
 SO 
 
 r.nii I 
 
 IS 
 
 S'J 
 
 200 
 
 10 
 I 
 
 100 
 
 1410 
 
 1763 
 
 3 
 
 S75 
 1197 
 1476 
 
 -j,-~ . . 
 
liOOK KKKriSO. 
 
 i 
 
 m 
 
 I 
 
 M 
 o 
 o 
 m 
 
 a 
 J 
 
 H 
 
 I 
 
 d 
 
 i 
 
 •any I 
 •X|n|- j ^ 
 
 ■.f«,V I 
 M.tV I 
 
 •MR l_ 
 
 •ri.|' 
 
 !,-V: 
 
 Si 
 
 ,2 
 
 o,...,[ 
 
 &l 
 
 
 
 
 e -^ « 
 
 1-^ 
 
 
 
 •"!i 
 
128 
 
 BOOK-KRKI'INO. 
 
 INDEX TO LEDGER.* 
 
 J 
 
 Clark, H. J. 1H9 
 
 Ciimfron, Jan. ISO 
 
 l)avi», C. A. JS9 
 
 G 
 
 U 
 
 ' S«« V^t SO. 
 
 M 
 
 ifuriforfi, A. S. 
 Mi/ti-r, »'. It 
 
 l.W 
 
 J.TJ 
 
 N 
 
 O 
 
 R 
 
 S, T 
 
 ] Thompnon, J. W. 120 
 
 j Thomas, 11. C. 129 
 
 tr. V. W 
 
Dr. 
 
 BOOK KKKPISri. 
 
 LEDGER — SET 1. 
 
 1SS7 
 
 Juh 
 
 7\ r,)Ca»h. 
 
 /.; " Balance*. 
 
 SO 
 ?10<) 
 
 I eissl 
 
 I 
 
 isfr7 
 
 Jiitu-. 
 
 By SuiiJrift 
 " Uain* . . 
 
 U. J. Clark. 
 
 18S7 
 Janr 
 
 To BiiJitnrf. 
 
 
 
 
 ! /.'.ST 
 
 
 
 7,'t 
 
 i 
 
 JuHf I 'i 
 
 1 
 
 
 7.; 
 
 ' 
 
 
 
 ^ =1 
 
 
 BiJ Bii/<tnrf' 
 
 J. TT'. Tlionifjson. 
 
 1S87 
 Jmir, 
 
 I \ To {Pupil). 
 
 n. C. 2'hoitKts. 
 
 129 
 
 Cr. 
 
 S0S9 
 
 4o^ 
 
 ilSifi 
 
 7-'> 
 
 1SS7 
 
 
 rune 
 
 .5 
 
 n 
 
 
 
 To Mdne . 
 
 
 
 
 1SS7 
 
 
 ■1 «.- '-v^. ' 
 j >>0 1 h ; 
 
 Juw 
 
 3 
 
 
 ¥> 7o\ 
 
 it 
 
 W 
 
 
 
 (1 
 
 ;.; 
 
 
 7ii L;/ 
 
 
 
 
 — 
 
 = 1 
 
 
 
 C. A. Davis. 
 
 !flS7 
 June 
 
 10 
 
 ToCatli. 
 
 
 JO 
 
 _ 
 
 1K17 
 June 
 
 4 
 
 10 
 
 1 
 
 By Canh . . 
 " BitUiuc 
 
 By Ca^h 
 
 " A. S..\f, I, ■</.,./, 
 " Balancr' . ... 
 
 By ExjKnse 
 
 ! ~'0 1 
 
 i-,0\ 
 
 10' 
 
 S'i r.i 
 
 7'i 51 
 
 10 
 
 10 \ 
 
 10 
 
 *Ke<l ink. 
 
 I 
 
ISO 
 Dr. 
 
 18S7 
 June 
 
 ItOOK KKKI'INU. 
 
 d. t'l .Mnnlnrh. 
 
 w 
 
 ToH.C. Thomwi 
 
 this. Cat)ieion. 
 
 1S87 
 
 
 June 
 
 // 
 
 • * 
 
 /.? 
 
 4< 
 
 /.; 
 
 ToCaxh. 
 
 
 i 
 
 i 
 
 
 }.fS7 
 
 
 lno 
 
 
 J 11 II)'. 
 
 
 S7'> 
 
 J 
 
 
 _. 
 
 
 1 1 
 
 *< (* 
 
 W. II. Miller. 
 
 II 
 
 Ledger Jjiilances. 
 
 Cr. 
 
 
 
 
 
 - — ' ■ ■ - 
 
 
 
 
 
 /.f.sr 
 
 
 
 
 
 SI) 
 
 
 Juiir 
 
 /.; 
 
 Hi/ Uitliinre* ... 
 
 
 .10 
 
 30 
 
 _l 
 
 
 
 
 
 SO 
 
 \ . 
 
 - 
 
 ItiO 
 
 240 
 
 4110 i 
 
 To Mdne 
 
 
 
 
 4S 
 
 ;,v,s7 
 
 June 
 
 1 
 
 i 
 
 J!i/ Kj iM'ime , . . 
 
 i 
 1 
 
 3 
 
 2 
 
 
 
 
 
 6 
 
 4S 
 
 
 
 PKR8ORAL Debtors. 
 
 11. J. Chirk 
 
 •/. \y. Tlwiniinon 
 II. C TliDimut . . 
 A. .S. Mitrdiir.h , 
 »r. //. Miller ... 
 
 Total Debits 
 
 Exr.ms of Credits from Dun 
 Jiook ". 
 
 Proof of Pasting 
 
 
 
 1 
 
 (J 
 
 \ 
 
 i'tf 
 
 
 30 
 
 jl 
 
 SO 
 
 
 4) 
 
 9S 
 
 IC4 
 
 40 
 
 /,W7 
 
 .-.1 
 
 MOO 
 
 
 I'KRSOXAL C'KEDiTOKS. 
 
 Pu/nCs lialance 
 
 Total CredUs , 
 
 suco 
 
 JIJOO 
 
 • Red ink. 
 
BOOK KKKPIN»J. 
 
 liPunnrrfft mnf I.inliilifirn 
 
 n\ 
 
 Riioi Rt-m. 
 
 AcrlD. Rifii-itlilr , . , 
 /.')//■( linriiulili . . . . 
 Mill". {/i„l. htr'y).. 
 
 ( ;ish 
 
 ( ijicf Ihsk 
 
 
 
 V.i 
 
 4r> 
 
 7.f 
 
 1).: 
 
 lor.-, 
 
 ■'ill 
 
 2i:>7 
 
 IKI 
 
 9 
 
 
 ,'.;tK) 
 
 (HI 
 
 I.URM.ITirK. 
 
 tWU P„i„i},U 1| 4^wl 
 
 I'uinl'i .\'il < 'ufiital \\ i'lou , 
 
 I 2.9)0 ' 
 
 S/nfritiriif ()/' /,M,s\ aiiif (lain. 
 
 Pii/h/'m '\'il C'ltfiifn! 2100 
 
 i'W^W I 
 
 I no mI nil lit 
 I'li/iil'it XH (Inin 
 
 ill , 
 
 In writiiij,' u|> the s«'e<)n(l part uf Sit I., tlic pupil will .ulnpt the int'tli(Ml 
 I'Xf'inpliticil. Ht^ will iiihIcc out tli<' propcf >i.iii'iiifiits at t!in cl<ts»'. Tlie 
 acccjuiits ill tliu lA'ilger must l>« iii<li-\i'<|. 
 
 SET I. -Continued. 
 
 fun.; 17, \M~, — Sold J. W. Tliump'^un on ac.ount, L'O Ihs. iJlack Tea at 
 
 (JOc. ; 5") ll)s. Ham at |.")c. ; 1(M> |iw. Oatnu-al at (ic. ; f) lbs. Starch 
 
 at lOc. ; L 11,. Nutmegs at 7<t.'. ; 20 ll>s. Chp«'so at I'tc. ; ]."> ?l)s. 
 
 llaisins at lOc. $ -. Paid for advcrtisinL', ^'.S.TO. Cash sales, 
 
 IS. Deposited in the Standard Jiank, .*lL'0. II. J. Clark paid on account, 
 cash, 8l'U. Sold Kobert Cutumings on his not« at 10 davs, 5 ll>s. 
 Tobacco at OOc. ; 2") ll>s. Tea at '\^h\ ; 100 ll)s. (Jianulated Sugar 
 at 10c. ; no ll)s. Brown Sugar at )^c. ; ;j lbs. Uaisins at lUc. I? -. 
 Cash Sides, iS-!r).70. 
 
 20. A. S. Murdoch pai<l his order received on the 10th inst. with 'ash, $.'50. 
 W. H. Mill»-rpaid tho balance of his act-ount with wo«kI at $1.75 
 per cord. .« -. Cash .s.de.s, §10.80. 
 
 -M. Bought of ila-on it Co. giMMls, us per Tintjice No. fi, amounting to 
 §130. Gave in part p.iyuienc myjioto at 2 months for .*."»0. Paid 
 per check my note favor of Jamieson .t Co., and interest for t In- 
 time o\enlue at 8/;^. Face of note, $200. Interest. 2r)c. Cash 
 .sales, 830.2.5. 
 
 L'2. Deposited in the bank, $.50. Received cash in full payment of A.M. 
 Rattenbury's note as per B. B. Cash sales, .?21.90. 
 
 23. Paid for a safe for office per check, .«120. Paid Mason k Co. 'a order 
 for $50 in goiHls. Cash sides, $2.1. 70. 
 
lil 
 
 Nc 
 
 133 BOOK KKEPINC. 
 
 24. Pold A. C. Morrison on account, 3 l}>s. Tea nt nOc. ; 24 packages Sal. 
 inon at 15c.; 30 Jbs. (}ranul;it.<'il Sugar at 10(;. $ -. Cash dales 
 .$22.80. 
 
 S.'). Tleceivecl from II. C. Thomas on account, liis check for $20. De- 
 posited in bank, ^HO. Paid James C Andrew.s for repairs, cash, 
 .S.3..50. Ca.sh sjiles, $41.75. 
 
 27. Sold A. H. Hardman, 40 lbs. Tea at 50c. ; 90 lbs. Brown Sugar at 7c. : 
 
 12J lbs. Ginger at 40c.; 60 lbs. Ham at 14o. ; 40 lbs. Breakfast 
 Bacon at 1.3c.; 30 packages Canned Salmon at 15c. ; 25 packages 
 Canned Mackerel at 13c. ; 100 Ib.s. Oatmeal at 5<'. ; 12 jars Canned 
 Fruit at 20cts; 20 bars Soap at 10c. ; 2 boxes Matches at 25c. 
 $ — . Received in part payment his check for $50. 
 
 28. Received from H. J. Clark an order on S. W. Hall for $40, which Mr. 
 
 Hall immediately paid with cash. A. C. Morrison paid on acct., 
 cash $5. Cash siih's, $30.35. 
 
 29. Deposited in bank, 8100. J. W. Thompson gave me his note at 30 
 
 days to close his amount, $ -. Cash .sales, S28.70. 
 
 30. Paid "clerk's hire, $20 ; freight, $10.40, and dray age, $10 i)er check. 
 
 Cash sales, $36.90. 
 
 Inrentories June 00. 
 
 Goods unsold, valued at $712 o^. 
 
 Safe 120 ^ 
 
 Office Furniture 9 
 
 Result.— Net Capital, $2,065.10 ; Net Loss, $34.90. 
 
 EXERCISE I. ' 
 
 ]^arch 1, 1887. — Invested in business, cash $200. '^^0 
 
 2. Bought of J. McH.ardy for cash, goods invoiced at $120. 
 
 3. Sold Thos. Smith on account, 5 bbls. Flour at $5. 
 
 4. Paid cash for advertising, $1.40. 
 
 5. Sold A. Brownlee for cash, 40 bush. Wlieat at 80c. 
 
 7. Sold Tho.s. Smith on account, 20 bush. Barley at 45c. 
 
 8. Bought of A. Hilker on account, JO bbls. Flour at $4.50, 
 
 9. Thos Smith paid on account, cash $10. 
 
 10. (lave A. Hilker on account, cash $20, and ray note at 10 days for 
 
 balance, $-. 01/ /rl ^L 
 
 1 1 . Paid clerk's salary with cash, $10. J^' A^m^^/C/C^ -t* LA^U^ 
 
 Goods on hand valued at $112.00. A£-C^^jr^$~^ _x^ XjCatiAX 
 
 (n) Transfer to the proper bwks as in Set I. -A PJ'^ $J M^fli^ ^' 
 (h) Prove the correctness of the Posting. fz^ ^ Jatu^JeJ^Ax 
 
 (f) Make out a Statement of Resources and Liabilities. Sqa^ «i 
 
 EXERCISE n. » ' 
 
 April 1, 1887. — Commenced business with cash on hand, $290; mdse. in 
 store, $300; Wm. Jones' note drawn Feb. 1, at CO tlays, for $50. 
 I owe John Barkwell on account, $30. 
 
BOOK-KEEPINP.. 
 
 13.; 
 
 2, Sold Wm. Young for cash, 10 II)s. Tea at 70c. ; 30 llxs. Gran. Sugar at 9c. 
 Deposited in tlie Merchants' Jiank, $150. Paid ca.sh for Kenairs 
 $4.50 ; Fuel, $3. * 
 
 4. Sold H. Corbett on his note at 10 days, 40 lbs. Raisins at 10c • 30 lbs 
 
 Tea at 60c. ; 20 lbs. Rice at 4c. 
 
 5. Gave John Barkwell on account, my check for $20. Recfivcd fn.ni 
 
 Wm. Jones, his check in full payment of his note <lue tliis day. 
 
 6. Sold my entire stock of go(«ls to A. Rurchill for ^2W). Itcceiv.-d in 
 
 payment, cash $100, :Monroe's check for $50, and liurcliills note at 
 3 mos. for the balance. $ -, Paid clerk's salary with my check, $1U. 
 
 (a) Make the proper entries of the transactions. 
 
 (h) Prove the correctness of Posting. 
 
 (c) Make out a Satement of Picsourccs and Liabilities and close the 
 accounts. 
 
 (rf) Find the loss or gain. 
 
 (e) Shew the imperfections of Single Entry ]'.<M)k-keeping, by referring 
 to the work of this exercise. 
 
 EXERCISE III. 
 
 April 11, 1887, -Commenced business with a cash capital of .*l,0(((). 
 Deposited in bank, )?0(iO. 
 
 12. Bouglit of S. W. Taylor for cash, goods, as per Invoice, $300 Paiij 
 
 cash for Fuel, $5 ; for Coal Oil, i<l.[H). 
 
 13. Sold S. H. Mann on account, 12 H)s. Tea at 50c. ; 13 lbs. Rai.sins at 
 
 He; 2 Ib.s. Ginger at 49c. ; 2 gallons Vinegar at 4()c. .<< 
 
 14. SoldThos. Murray, 50 lbs. Tea at 4.")c. Received in payment, cash. 
 
 $10, and his note at 15 days for the Iwlance. $ . 
 
 15. S. H. Mann paid on account, cash, 8.1. Cave C. D. Spooner mv note 
 
 at 5 days for repaiiing store, .§20. 
 
 1 6. Lost a $5 bill. 
 
 19. Sold S. H. Mann on account, 3 bars Snap at 10c. ; 
 Syrup at $1.20 ; 40 bushels Potatoes at 40c. $- 
 
 22. Paid boy's wages with my check, $5.50. 
 
 23. Paid my note in favor of C. D. SpcH)ner with c<ish, 
 
 Gotxls on. hand valued at $2G7.17. 
 
 (a) Enter tlie transjictions into the proper books. 
 
 (i) Make out a statement and clo.se. 
 
 (c) "Write the note received from Thos. Murray, and the one given to 
 C. 1). Spooner. 
 
 (•/) How does a dealer find the \alue of the gcKxls on hand ? IL, often 
 l.s this usually done in actual l)ii-.iness ;' 
 
 ('') "What is meant by balam itig the ( 'a.sh Hix)k ? 
 
 (/) Wliy cannot the gain or lo.ss gn i<' r.)ian<li-,e be found bv Sinirla 
 Entry? Explain fully. ^ •* 
 
 14 gallons Maph 
 
 1, ^ 
 
134 
 
 BOOK-KEEPIKQ. 
 
 SET ZL— SINGLE ENTRY. 
 
 Books used. — Day Book, Cash Book, Bill Book, and Ledger. 
 
 RECORD OF TBANSACTIONS-SET II. 
 
 , March 1, 18S7. 
 
 Commenced business ^»'ith the following resources : Cash on hand, 
 $1,000; mdse. in store, $800; X. Clarke's note of $600 at 4 inos., 
 dated Jan. 10, 1887. Geo. Leeds owes mo on account, $80. (Tlif 
 \^ pupil must give himself credit in the Day liook for the amount 
 he invests. An entry will be made in the Cash Book and also in 
 the Bill Book.) 
 
 3. Sold L. S. Keith, on account, 100 yds. Flannel at 50c. ; 24 Silk Neck- 
 ties at 60c. ; 7 yds. Tweed at $1.20. ' 
 
 5. Bought of M. Mathers on account, an invoice of goo<ls amounting li> 
 $130. (Why is it not necessary to give the items here?) 
 
 7. Sold Geo. Leeds, 40 yds. Silk at $1.10; 30 yds. Cotton at 10c. Bo- 
 ceived in part payment, cash, $20. (Enter in tlie D. B. and C. B.) 
 
 8. Paid cash for Repairs, $5 ; Coid Oil, $1. (Enter in the C. B. Why 
 not in the D. B. ?) 
 
 Deposited in the Molsons Bank, cash, $800. (Tf a Bank Account i> 
 kept, what entry? Shew why an account with a bank may hv 
 regarded as a personal account.) 
 Sold R. Cameron on his note at 10 days, 14 yds. Broadcloth at .$1.?."): 
 8 yds. Farmer's Satin at 55c. ; 2 doz. Collars at $2.50. (Enter in 
 the B. B. Why not in the D. B. or C. B. ?) / ' 
 
 Paid for Advertising, with cash, $2.50. 
 Received from Geo. Leeds on account, cash $50. 
 "7 '.f 'X !'• Bought of C. Turnbull on my note at 30 days, an Invoice of gocnl- 
 amounting to $1 25.50. 
 Received from L. S. Keith, his check in full of account, $ — . Dc 
 posited in the Molsons Bank, $180. 
 21. Sold D. M. Malloch 24 yds. Scotch Tweed at $1.40 ; 65 yds. Sheet in- 
 at 14c. ; 30 yds. Red Flannel at 35c. ; 12 yds. Irish Linen at 40c. 
 '' '^ Received in part payment his note at 30 days for $20. (Enter in 
 
 the D. B. and B. B. Why ?) 
 24. Paid cash for Wood, $3.60 ; Express charges, $1.25. 
 26. Received from Geo. Leeds an order for $40 on S. W. Dawson, wiiii 1. 
 by his request is passed to his account. ((Jeo. Leeds gives us valin' ; 
 therefore he must lie credited. S. W. Dawson assumes a debt ; 
 therefore he must be debited.) 
 30. Paid clerk's salary w-th my check on the Molsons Bank, $25, 
 GikkIs on hand valued at $893.80. 
 Result.— Net worth at closing, $2,491.65 ; Net Gain, $11.65. 
 
 10. 
 
 12. 
 
 14. 
 15. 
 17. 
 
 19. 
 
HOOK KEKPING. 
 
 Ibb 
 
 TO CHANGE FROM SINGLE TO DOUBLE ENTRY. 
 
 ^ In onler to understiuid cloarly liow to change from Single to Double 
 Entry, and vice versa, tlie pupil must fidly comprehend the real difference 
 hetween tlie tw(. systems, viz., that >,n]y'/»'rgonul accounts are kept in a 
 Single Entry Ledger, while accounts with persons and fhini/^ are kept in a 
 Double Entry Ledger. By the one system we regard persons as our 
 debtors and creditors ; by the other persons and things. The pupil will 
 then see that in order to change from Single to Double Entry it is nec.vss- 
 sary to open a new account for every r.>ou/re and Ihibiliti/, e.xceptiii" 
 those connected with personal accounts, these ijeing already i-epresente.C 
 The hnlanres will be entered into the new accounts, and the w/^^vam trans- 
 ferred to tlie proprietor's account, after which, if the work is correct, the 
 Ledger will be in equilibrium. 
 
 It is customary to close the L<;dger, I>ut is not really important to do so, 
 as the balances can all be found without closing the b(M)ks. Of course 
 they wdl be closed, if a new set of bi^^ks is to be used after the change. 
 
 The pupil will now take all the balances from the statements on pages 
 1.30 and 1;M, and work the second part of S.-t T. by Double Entry. As he 
 has already done it by Single Entry, he will thus see clearly the difference 
 i)etween the two systems. 
 
 The new accounts to be opeiusd in this particular case are Cash, Mdse., 
 Bills liecrivnble, Bills Paijablc, and Kw/ien^'. 
 
 In Set I. the cash deposited in the bank is regarded as cash on lian<l. 
 As all deposits are placed by the Iwmk officials to the credit of the deposi- 
 tor in the Bank Pass Book, and as the counterfoil of the last chec" i.ssued 
 shews the balance deposited, it is unncessary labor to keep a biiidi account 
 in the Ledger. 
 
 Some book-keepers make use of a Cash Bot)k having on the Cr. side a 
 column for deposits, and on the Dr. side one for the 'amounts of checks 
 'ssued. The difference between these will of course, shew the balance to 
 the credit of the dealer at the bank, provided the checks have all been 
 [•resented and honored. 
 
 TO CHANGE PROM DOUBLE TO SINGIjE ENTRY. 
 
 To change a .set of books from Double to Single Entry, comi)lete the 
 ;»)sting and dose all the accounts, excvpting tho.e kept with person.'^. If 
 ilie books are closed at the time of making the change, re-open only 1,- 
 I»-rsonal accounts. The bal.'ince of cash on hand will be carri.'d to the 
 < ash Book, and that of others' notes on hand, as well as of our notes out- 
 oUndmg, will be entered into the Bill Book. 
 
 ^^. 
 
136 
 
 BOOK-KEEriNO. 
 
 CHAPTEB IX. 
 
 BANKENG. 
 
 When a person wishes to open an account with a bank, he must furnish 
 satisfactory evidence of his honesty and trustiness in regard to business 
 transactions. This being done, he will be required to sign his n-ime in the 
 proper bot)k. The object of doing so is to enable the bank oflici.vls to 
 test any doubtful signatures that may l>e attached to checks or other 
 paper presented for piyment. 
 
 Deposit Slips. — These, as well as all other necessary blanks, are fur 
 nished by the bank. The person making a deposit will fill the slip as 
 indie.-! ^d by its form, and hand it along with the money «tr other value 
 deposited to the Teller. If found correct it will be initialed and passed to 
 the Ije<lger-keeper, who will place the amount appearing on it to the credit 
 of the depositor. 
 
 Bank Pass ^ooA.— When a deposit is made the amount of it is entereil 
 into this book. At the end of every month the Pass Book should In- 
 handed over to the \r r',k to be balanced. No entry is made in it Vjy any 
 one but the proper b nk othcial, as it is the depositor's voucher for all 
 values given to the bank. 
 
 When a person does not wish to open an account with a bank, but 
 deposits a sum merely for sjife-keeping, he may draw a check for the 
 amount, payable to himself, and get the banker to mark it "go<xl." Tlie 
 bank is responsible for the payment of an accepted check on it. If tlm 
 money is to be deposited for a considerable length of time, a certificate of 
 deposit should be taken for it. 
 
 Check Rook. — This book contains forms of checks to be filled out as 
 they are needed. The particulara should be entered on the stub iK-foiv 
 the check itself is written. Care must be taken to enter the amounts s. 
 tliat no clianges can be made in them. The balance deposited should 
 always appear on the stub, as this will save trouble when makiu!,' out 
 ciiecks. When the one who issues a check wishes it to be evidence of 
 payment made to the person in whose favor it is drawn, it should l)e nuule 
 payable to the order of such person, as he will have to intlorse* the check 
 before the bank will cash it. 
 
 If a check, on being presented within a reasonable time, is dishononii 
 by the bank, it should be returned to the drawer, as no payment is made 
 owing to it. 
 
 If a check is not presented for payment within a reasonable time nb'-- 
 I)ein" received, and if it is rendered valueless on account of such negltd, 
 the holder must bear the loss. 
 
 •Tha indorsement ihoiild be on the bui'k 
 (cnerally regtrdetl M tha top of tha back. 
 
 -written crontwite. Tha l^ft-hand aide of the f^ic 
 
BOOK-KEEPING. 
 
 137 
 
 I« making payments with checks, it is often well to get them certified 
 It payment to a person at a distance is made by check if mnwf K» i 
 so as to cover the debt and a commission of i^Tbaurs usLTv 'h!r T^^ 
 or cashing checks issued by other banks), fcnk dStf" tt?^^ 
 for making remittances. A draft for $1'00 or less, general! voojfoi ",!^ 
 one for a sum greater than $200, I, of its face \alue if tl r'^- "•"' 
 branch of the bank which issue.! the draft [Hhe pie w . ^ U i: ^^ 
 
 =S/SE^^.^tki-;-L- -*^ -thecomr;^ 
 
 When a person hands notes over to a bank for ooller-fi^r, i i 
 
 lake this on before presentn ' ' Rv <l,.;n« +!.;„ +i ?" - ' ii<m.sT. 
 
 notes back without paying protest c^irg:"'^ " *'^ """^'' ""'^ ^'' *''^ 
 
 PRIVATE LEDGER 
 
 .i,ia work. ,t i. .i„„.,/, ,,,„i „, .i;:.'';;;;i;Il;; ; „ J °;r,rs;: 
 
 Ledger, a,,d u.aMy ,„„t,,i,i« the .St<»k uecuuiit; tl.e uZl,.r,Y 
 «,u„t and the Me,ol„u,di,e accmnt. Tt i, e„ pW„| |" b ' ;„? , , '"' 
 
 sra:'::;;tdL:r"^ '- --"^ "» — -^ '"inV't^t;-; 
 
 PETTY CASH BOOK 
 Into this b.K.k are entere<l small sums of ca.sh received or paid ouf At 
 
 in keeping ,l,i. l^k L. U, .l;; 1;L» 'L Z '©.ih ']£;^- "" '■'""' "''J~' 
 
 PETTY LEDGER. 
 
 .onfusion. To avoid this, ,he indexing must I^. properly attended^ ' 
 
 SUNDRY DEBTORS ACCOUNT. 
 
 This is an account kept by some in which to enter frin«fl<,f; -.t. 
 
 persons who are likely to punhase but little. TlZ 1 .[eetTTotZ^r'^ 
 
 m tl,.. Ledger. If .ud. ,.rsons l.,,v ou credit oft.-ner til::;! once? a^^Xn: 
 
138 
 
 BOOK-KKEPINO. 
 
 
 Nh'* 
 
 h-' 
 
 shoulil be opeiietl with them in the regular way, and their account in tho 
 Sun<lry Debtors Account should be closed into the new one. If tlii- 
 were always adhered to, much trouble might be avoided. 
 
 HOW TO DEAL WITH BAD DEBTS. 
 
 There are various ways of dealing with bad debts. Some carry them 
 into what is called the " Susj)ended List," leaving the accounts open.* Tlif 
 inctho<l that seems most satisfactory is to open a I'tiul Debts Account ami 
 charge it with ail amounts which cannot be collected. Close this aceouni 
 into Loss and (Jain. The advantage of this methtKl is that the sum written 
 off each time the books are closed is shewn clearly. When any of tliesr 
 amounts are coll«'cted, it will be necessjiry to hold whatever is received 
 Dr. and make Loss and Gain Cr. If, however, any of these amounts arc 
 received while the Bad Dt^bts account is open, credit iimst be given to jV 
 instead of to L<jss and Gain. Any amounts collected and crerlitexl toLo--^ 
 and Gain may be entered with red ink in small figures opposite the sum 
 expressing tne wholes amount of bad debts when the account was closed. 
 By doing this tlui actual amount lost in this way for any particular year 
 can be seen at a glance, and the confusion )f mixing the bad debts of one 
 year with those of another is completely avoided. 
 
 CROSS ENTRIES. 
 
 Cross entries are made in orfler to correct errors. To shew the use of 
 such entries, it niay be best to consider a few examples. 
 
 Suppose that you gave L. Mason your check for $100 on account and 
 that you made the entry : f 
 
 L. Mason Dr $100 
 
 To Cash $100 
 
 This wouid bo corrected by the cross entry : 
 
 Cash Dr $100 
 
 To Jiaiik $100 
 
 It is easily seen that this produces the simie final result as the proper 
 entry, viz. : 
 
 L.Mason Dr $100 
 
 To Bank $100 
 
 Cash was incorrectly credited, therefore it nmst be debitwi. 
 
 (2) Suppose L. M. Hespeler paid on account his .sight draft on .). Smiili 
 for $50, which Smith lonors by giving his cheek, and that you made t!." 
 entry : 
 
 * In order to avoid eniharnissmptit, if » jxrson, wlioso at•<^o^mt is not considered good, should w i h 
 to 806 it in the Ledger, th^- closing entry may be " Uy Balance," with a private mark attacheil, lo 
 indicate that the amount is transferred to the Bad Debts account, and not considered a resource. 
 
 t It is presumed here that a l>ank account ii. kept in the Ledger. 
 
BOOK-KKKPING. ^^^ 
 
 Va$n Dr ^5^ 
 
 To J. .Smith ^JJO 
 
 You would correct thus : 
 
 J. Smith l)r fitr^o 
 
 To L. M. llpxiteln- . . $'}0 
 
 To correct an error it is sometimes necessiry t., nnke several entries or 
 tins kind, but in all cases the followin- rule will i.r..\e ai)i)li,able : 
 
 Debit any account or accounts that have been ,rro7i.,h, cedite.l, ..:• that 
 ou-ht to have been ilehte,!, «,k1 cr.-,lit any account or accounts that have 
 l.e.-n wrorujb, ,l.bite<l, or that ought to havo been credited. 
 
 TRANSFERRING ACCOUNTS FROM AN OLD LEDGER 
 
 TO A NEW ONE. 
 
 When a I^-.lger beconus filled, «„d when, in consequen.-e, it Ix-conies 
 necessary to transfer the accounts then-tVoni to a new one, the followin" 
 course may be adopted : — ° 
 
 1. Mark tlie old one "Ledger A" and th.- new one " T^vlger B." 
 
 2. Close the first account in I^.Iger A, "To' or " J5y I5ala°.ce to Le^l^er 
 B," making the entry in led ink. " 
 
 Open a new account in Ledger H, having the .s;in,e lieading as the erne 
 )ust closed ami make the entry "Jly-'or " To Balance from Ledger A " 
 in black ink. " ' 
 
 a JTI;:e;!trri;, ^K: {!::i::::!^rtl^^:i: r' — • •- -"^ - '►.« -.a.ler ...e o. the ac..o>.„t. 
 
 4. Lidex the account a_s soon as opened, and indicate in each Ixnlge. 
 the page of the other on whiili it appears. 
 
 f). Treat all the accounts in a similar manner. 
 
 MANUFACTURING. 
 
 1 ^^ ''*"Vt' P^-*^"'; "»''»"f'-ictures all the go.Mls which he handles, he shoulu 
 charge Merchandise account with the total cost of them, an.l credit i(, 
 
 or the proceeds of s^tles. Jf it is <lesirable to keep a Mafei^ial account. 
 Ubor account, Ac, these will be dosed into the Merchandise Account 
 ix'fore balancing the books. 
 
 T,/',' K?J ''"'^li'^'r-^' ""ly ■■' I-rt "f :'"' S'-l^ is <,f homo manufacture, 
 r, ..u h ,. c..,e, If he dealer wishes to know his gain or lo.ss in the articles 
 >hat Im manufactures, he will open in a.l.htion to the Merchan.lise 
 account* one having the heading " Maimfacturing," and .-on.luct it a< 
 already indicated. 
 
 ' Here the Merdian.INo ac-.„u„t represent: "mr tne roo,!, purchMed. 
 
140 
 
 BOOK KKKPINO. 
 
 PLANT ACCOUNT. 
 
 The t«nu " Plant" in mercantile phraseology represents all inip'-inients, 
 machinery, ic, which are use<l in pnKlucing the article or articles niami 
 fa(-ture<l. The Plant account is held Dr. for the first cost of the plant, 
 anil b)ss and (Jain is held Dr. for subsequent amounts written oflf owing 
 to depreciation in value. 
 
 MARKING GOODS. 
 When goods are receive<l, the invoice should be checked and "marked." 
 A .slip showing the following should 1> att-ached to each package, «tc. 
 
 (a) The initials of the name of the person or flnu from whom purchawd. 
 
 (b) The date of the iiivoioe. 
 
 (c) The quantity. 
 
 (d) The cost in private chariurters. 
 
 (e) The Bellinif price in plain figures or private characters. 
 
 Any combination of ten or eleven different letters as, " Republican," 
 •' Importance," ifcc, will be found suitable for private marking. Suppose 
 the word '^ Nourishnble" is selected, the first ten letters taken in onlcr 
 representing the numerals 1, 2, 3, 4, 5, G, 7, 8 9, 0, respectively. The last 
 letter may be usetl as a repeater. For example, an article costing !gl.44, 
 would be marked nre, and one costing $6.90, s b L The pupil will 
 understand this better by writing the word (or phrase) and the corres- 
 ponding figures thus : 
 
 nourishable 
 
 1234567890 repeater. 
 
 Marks which are purely arbitrary are often employed. Special characters 
 should be chosen to denote fractions, such as \, J, \, Ac. 
 
 By referring to the slip marked as described above, it will be seen at 
 once for what time any article has been in stock - a very important matter. 
 
 BOOKS AS EVIDENCE IN COURT. 
 
 When a debtor disputes the claim macie by a creditor, for which there i-^ 
 no other evidence than the entries in the books of tlie latter, the following 
 must be proved before payment can be enforced : 
 
 (a) 3y whom the entries were made. 
 
 (b ) That the books produced are kept by hivu 
 
 (c) That he is a trnstworthij accountant. 
 C(/;That some of the articles charged were delivered. 
 
 [Kan.— Books of ori^wl ttUry, and no others- are admitted aa evidence in oourU of law^ 
 
BOOK-KREPINQ. 
 
 BRANCH HOUSES. 
 
 141 
 
 Whpti goofls are l>ouglit fur a l„anch house, it slioul.l 1,.» .U-Wited for 
 their cost, and cre<iit sliouKi ho givva to the imtsohh fi-om wh..in the "otxls 
 were purchase*!, or to whatever rei)n.s<.nt8 the value paid f..r them " Tlie 
 invoices of su.h g.xKls should bo iuarke«l with r.-*! ink, so that thev -.vill 
 not be charged to the Merchandise account like the others. 
 
 When a branch house gets goods fn>in the store, it shouhl l>e d. oiteil 
 for the cost of them, and the Merchandise account cre<lite«l. When i 
 returns ginxis, it should be cmlitetl and Merchandise debited. 
 
 If at the end of a terra of business a branch house reports a net train 
 It will \)e debite«l for the amount and I^iss and Gain cre<lite«l • but if it 
 reports a net loss, it will be cre<lite<l and Loss and Gain debite<i.' 
 
 A branch house should open an account with the principal house, givine 
 It credit for all values receive*! from it at the time of conm.encing, as well 
 f!j a'. T «"*"*'l"«'"t»y receive.l, and debiting it for all amounts remit- 
 ted. At the close of a tenn of business, this account sli<.uld be tlebitetl f..r 
 the net Loss or credited for the net Gain, as the case may lie. 
 
 As branch houses do not, generally s,K>aking, pay for their own goods, 
 but hand over their bills for settlement to the principal house, they must 
 cre<iit it for purchases instead of the parties from whom the goods were 
 l>ought. ** 
 
 PARTIAL PAYMENTS.* 
 
 By Partial Payments we mean the payment of a debt by portions at 
 dmerent times. 
 
 ,1'iw''!,^ "' \v."°^' u' "i'^" *'"**" oblisration, the amount and date of earh navment i. 
 &^tl '^'^ "' "• '*"''' •cknowle.ipnenu appearing on noteL.Tc , ^^tlnJ' 
 
 ReceipU are iometimes given when such payments are made. 
 
 The following method is the one adoptenl by business men for comput i" 
 interest when a debt is paid by parts. (This method should Im adhemi v- 
 as it is recognized by the courts of law.) 
 
 (a) Reckon the, interest on the princiiml from tlie commencement to thi 
 time of the Jirst paymejit. 
 
 (b) If the pnymmt is greater than the interest accrued, deduct the su 
 plus from tlie principal., and regard the remainder us the new jn-incijxd 
 proceeding as before. ' 
 
 (c) \If the payment is less than the interest due, the interest will be 
 reckoned on the principal as if no payment hud been ,.i,ule, until such time 
 
 • Aj thU tubject and the one tollowinsr it are dealt with In the fpxt-bocka on Arithmetln. If i. 
 deemed «nnec««nr to <liKU» them Jully here. The student will work out ^?uUriS.e «eref JS 
 OH them 'n the books referred ta >-~>:iujijr uie exenisea 
 
 t If the atudent win look into the matter he will m« that it would be rery unffcfr to lnorem«i th. 
 prlnd|^M the debtor would b. pnyiiw m«re interert ttan U h« ntiuned th,T[,2SSS Sid SrSTowi 
 
142 
 
 BOOK-KKKPlNn. 
 
 
 ,...i 
 
 <M Hi* payiwnta taken totjfthpi' ore ct/vnl to. or r/naffr tlnn, (lie accrued 
 interest. Tlw, surplus vUl t/ieu be tlidiirf-il from the principal and l.'n- 
 remaindir regarded as the new jirincijxiK 
 
 By examining caiffully the foregoinj,', tli« Ktudent t-im <lo<luce: 
 
 (1) That imyment rnunt flrxt »«; ap(ilit<l to the diwhart'o of the iutrre^t. 
 CT) Thnt a new principal cannnt rirerd a previous one. 
 
 (■!) That a <leht T who pay* an niiimint 1,'sa Hum thr hilrfiil iliir, «e\* iiothinir for the ute of hi« 
 
 ittliiently lurife I - •• : — •• ■ 1... ... 
 
 EXAMPLE. 
 
 nioiirv uiilil tliesiniiof the jwyiiients i» mittl. iently lurife lo cmer the lutiruBt uikI ifneuHun^lua l^ 
 1« applied to the payment of the deht Itnelt. 
 
 ) 
 
 Port Eloin, July 4, 1887. 
 
 $500. 
 
 Fifteen months after date, T ptDniise to pay W. P. Spalding, or onler, 
 Five Hundred Dollars, for value received, with interest at fi^;'. 
 
 WM. SWEETMAN. 
 
 On this note are the following indorsements : 
 Tleceive<l Sept. 15, 1887, $50. j Ileceived Apr. 21, 1888, .«100. 
 
 Keceived Feb. 10, 1888, .$10. | Il<-<-eive«l July \ 1888, $70. 
 
 How much will pay the note on the .30th Oct., 1888. 
 
 ) SOLUTION. 
 
 lat Principal ^"00 
 
 Int. on $500 fn. m July 4, 18J>7, to Sept. 15, 1887 6 
 
 / Amount ^'^ 
 
 Ist Payment ^ 
 
 2nd Principal •*"''' 
 
 Int. on «456 from Sept. \\ 1887, to Feb. 10, ISSS, ^11. OO, 
 
 which exceeils the payment. 
 Int. on $456 from Sept. 15, 1887. to Apr. 21, 1888 Ifi 42 
 
 J 
 
 Amount 472 42 
 
 2nd and ."ird rayments 1 10 
 
 3rd IVincipal :«-• 42 
 
 Int. on .?.3C2.42 from Apr. 21 . U>S3, to July 3, 1888 4 .S5 
 
 Amount Jltitj 77 
 
 4th Payment "'^ 
 
 I 
 
 290 
 
 4th Principal 
 
 Int. on $296.77 from July 3, 1888, to Oct. 30, 1888 5 81 
 
 J Amount 302 58 
 
 Therefore, $302.58 is the sum that will discharee the debt on the 30th Oct., 1888. 
 
IIOOK KKKIMNfi. 
 
 )4« 
 
 AVERAGING ACCOUNTS. 
 
 To iivorage an aoc'«i'tit is f«i fiiul tlio fimo nt which sovorfil (hAtta due nt 
 • litt'fi-ent <lute.s nuiy Iw jmiil in ono aiiuiunh without loss of iiit«>r»'st to 
 eitiu'r debtor or trfditor. 
 
 Tho time found by avomging is termed the Equated Time. 
 
 Thero are several incthiHls of finding tlie equated time in u-m« ; liut tliev 
 are all based ujion the assumption that the inten-st of the sum ji.iid '/./;. /v? 
 it becDiiif'n )/ hi: i^ i'Umvalfut to the interest of an e<|ual siua witiiiifld fur 
 tho same length of time ti/'fyr it fticomt'n ihif. 
 
 The atiideiit who has a knowIHue of the prinriplcs unilerlyinK the inethoda of ramputiri); Ih.' 
 tnie preneiit woiih i)f a imm ilne at wmie future claU> will readily »kv that the ((ireKoinjc oiwumpliiin 
 i« not luatlieniatirnlly corrfct ; in i-rtual liunincnii, howmr, it, \» found very cunveulent to a<lopt it m 
 a bluil), the renultiiiK error Itwing ao aiiiall as to offer no serious olijix-tioii. 
 
 SIMPLE AVERAGR 
 
 Simple Average in the j)r(M"es.s of finding the eijuate*! tirno wlien an 
 account consists of nn\y debits nv credits. 
 
 The following methiHl of averaging an account is the one commonlv 
 used : — 
 
 (n) SeJeH an thejlri-d <lnt<: the, pitrlipxt in vhiih an amount falla due. 
 
 [ Any (late may be taken to count fn.ni, but the earliest or late«t i« chcwen for the Bakn .,f 
 convenience. J 
 
 (h) Find the time between thejiji-iid date oikI that vixui %i:Jiiih each umount 
 is payable, and multiply it by the nambff ij/nettsimj .sxrii time. 
 
 (c) Divide the sum of the products by the total amount of the debt arul 
 te quotient tvill give the number of days betireen the jixrd date and e'piated 
 time. 
 
 EXAMPLE. 
 
 ROBEIiT CURRT, Esq, 
 
 To JAMES SHIELDS. Dr. 
 
 1S87. 
 
 
 Jan. 
 
 17 
 
 <( 
 
 31 
 
 Feb. 
 
 S2 
 
 M,ir. 
 
 18 
 
 To Mdse 
 
 IIJO 
 
 50 
 
 ISO 
 
 am 
 
 Find the equated time. 
 
 11 
 
>44 
 
 BOOK-KKKPINQ. 
 
 d^JU. 
 
 OPBRATION. 
 
 Take Jan. 17 'w the first <lato. 
 
 FntmJan. 17 to .Twi. 31, the* n 
 " " " to Vfh. '.'•». ' 
 ,. .. .. . , vur. IH, " ■ ' " 
 
 100 V = 
 
 fiO X 14 = . H^ 
 
 150 X 30 = 4, .tH» 
 
 260 X 60 - !.". 'K) 
 
 6«0 )2'7l/>(.'.s," 
 
 Therefore the whole amount may >« p!'-' 'U i.iy 
 
 fr. lu 17 J that 
 
 is, on the 2r)th Feb. 
 
 COMPOUND AVEf VOB. 
 
 Ck>mpoand average is the process of fiiulir, the ■ .i ' n the bjiliiiuf 
 of ail account consisting of debits and er^ .it , .,li.,i,l I I ■ jiaid. Various 
 metho«ls of finding the equated tiini" fi>r tlin i>!iyiii«'iit of ine Iwilanee of an 
 account are employed. The follow ing one is hiniple an<l pr«ftical :— 
 
 (a) Find the equated TiM!./ar each sidr of thf. arcomit separately. 
 
 (h) Multiply tin aih..} it due: on that aide of the arrnunt which fnlh diif 
 FIRST, 6'/ tlw. number ••(' tUiya between the dnteg of the rtfiuittd time, ami dim<h 
 tlte product by the baL:,ice of the account; the qnoticnt will gire the nvvifxr 
 of days betumen the later date and the equaled time required. 
 
 (c) If the snudler aide ffdla due first, count forward from t/ie laiku 
 date; if the large sidefdla due first, count backward. 
 
 Dr. 
 
 EXAMPLE. 
 
 Hubert Fullerton. 
 
 Cr. 
 
 JS87 
 Ja H. 
 
 ToMdM 
 
 
 
 
 1S87 
 
 
 
 100 
 
 
 F'h. 
 
 17 
 
 
 so 
 
 / 
 
 Mar. 
 
 15 
 
 liil Cash 
 
 r,o 
 
 70 
 
 OPERATION. 
 
 100 X 00 
 50 X 50 
 
 'j»()0 
 
 150 )28()0(I<) 
 
 19 ds. from Jan. 3 gives J.in. 22 .vs tlie 
 
 equated time for the l)r. side. 
 
 60 X 00 
 
 70 X 26 = 1820 
 
 i:« 
 
 ) 1820(14 
 
 14 ds. from Feb. 17 gives Mar. 3 a 
 the equated time for the C'r. side. 
 
 * In such a akM. i( Uie fraction is leM than ^ it is not oounted ; if greater, it is talirn u unity. 
 
BOOK Kr.KPINfi. 146 
 
 110 » 40=rfiO(K> 
 
 an<l :;;• ^ :<oo 
 Therefore the e<|uatfl<l timo i-; fomul by rountin^ ;{()() »|avH hmkutird 
 from Mar. 3; as the krger si<l.' falls dui* Hrst. E<iual.-«i time Mav 7 
 1886. ' . • 
 
 CHAPTEli X. 
 
 CORRESPONDENCE. 
 
 Kow-a-<laya in almost any po8ition in lifn it is cnnsi(l«>r(><l a very «lesir- 
 able aecoraplislum'iit to \h' abl»' to comnmnicatc thoujfht to others in ch-ar 
 forcible, and eiejjant liiiiKuage. Fur the jH-rsori leaiiing a commercial iifej 
 it is certainly a mo.st imptrtant qualitication to {>os.se.s.s the ability t<» write 
 a goo<l business lett*^. No d<»ubt it takes considerable time ami study to 
 ac(|uire proticiency in letter-writing; ind.H-il, nothing short of a g(M.d gen- 
 eral educaticm will enable (»ne under all circumstances to give expre8.sion 
 to his ideas in the most suibibie terms. Although this is the case, it is 
 not to be infernnl that a jx'rson who has h.id but a limited triuniiig cannot 
 l)ecome fairly good at con-espomleiue ; in fact, he may excel in certain 
 departments of it by giving the.se sjiccial .-ittention. 
 
 A Letter is a written communication addn'sse<l by the person signing it 
 to some other person. Tt shouM consist of the following parts ; |, Date • 
 2, Address; 3, Salutation; 4, l;«Hly ; •'>, Subscription; (>, Sui«-r.scription. 
 
 TljB Date indicates the place and time of writing. It shoultl apj)ear on 
 the right-hand side, an<l at least one inch from the top of ilie jwige. In 
 the ca.se of a note of invitation it is customary to place the d.ite at the 
 bottom and to the left. 
 
 The Address is the name of the person (or firm) to whom the com- 
 munication is sent tt)gethcr with that of his residence or placi; of business. 
 In letters of friendship the addre.ss is sometimes plactnl at the bottom and 
 to the left, but in business letters it is usually jilacctl a little U-iow the 
 date and to the left, beginnitig at the margin. 
 
 The Salutation consists of the intrrxluctorv' words of court<»sy which 
 precede the bo<ly of the letter, and which are pla<cd to the left usually 
 Ijeginning at the margin. 
 
 The Body of a letter consists of the sentences or panigraph.>» which 
 express what the w liter wishes to cojinnunicate. It generally l)egins on 
 the line below the .s-ilutation, and .some distance fnMii the margin. There 
 should be a paragraph for every subject intro<luce<l, the first line of whi> l< 
 should begin from half an inch to an inch to the right of the margin. 
 
 II 
 
I4< 
 
 BOOK KKKIMNii 
 
 I* t,ll 
 
 ll' t' 
 
 If 'is; 
 
 Tho Subscription consists of tlie roniplinipiitury words j>Iacoii it tlin 
 bottom of a letter, and the signature of tlie writer, all of whirh should he 
 towards tlie right. 
 
 The Superscription is the full address of the person to whom the com- 
 munication is sent, written on the envelope. See below. 
 
 Letters are .so varied in their character that it is impossible to lay down 
 ^les ripplicable in all cases. The following, liowe\er, may jirove helpful : 
 
 (gy^allo ni-ntbj and plainly. 
 
 (6) Be careful in rejjanl to upeUiny, jmnctuation, and the arraruiewnt of the different parts. 
 
 (c) Use as few words as possible (esjietially in a Imsiiiess letter) to make dear the itieaninK. 
 
 (d) Avoid flanif phraset and «h<// "iiinntical exiiretixSiint. 
 
 (f) lif id th'? letter and, if neceiaa y, takf a copy of it before enelositiff it in the envelope. 
 (/) See that the envelope inpniju-rly din-cted and slami>ed. (See iliaifrani htlow.) 
 
 (7) Avoid jiiistxen'/itic an far as poswilile. 
 
 (ft) l}ej>ly pnimptly to a conimunieation. 
 
 (t) Never seal a letti-r nf ititriiliti-tinn. 
 
 ()) ' etters containing important information jriven ennfidnitially should be marked " Prieate," on 
 both the upper left hand corner of the envelope, and of the first jiage of the letter. 
 
 (t) In replyinij to an advertisement, mention the name and the number of the pajwr in which it 
 appeared. 
 
 In the exercises of this chapter the pupil will, as far as lie can, avoid 
 usin<^ the .same language as that found in the forms given, .so that each 
 communication he writes may affonl some practice in comiKisitioii. 
 
 IHitijrnm Shewing Superscription. 
 
 STAMP. 
 
 
 .^nl 
 

 
 iiouK-Kr: 
 
 K»'IN(i. 
 
 147 
 
 
 
 Li'ticr of I III 
 
 riHlnvtiiin. 
 
 
 Messrs 
 
 IvisoN it Pratt, 
 
 
 Clinton, May 
 
 11, 18S7. 
 
 
 Toronto, Out. 
 
 
 
 (iKNTLEMEN,— 
 
 
 
 
 Pcini 
 
 it iiit> to iiitro«lufe to you my 
 
 frit'iid, Mr. A. S. Tayloi 
 
 ', an enter- 
 
 piisiiif,' 
 
 aiul suocfssful inercliaiit ot t 
 
 lis town, who <{(K's to \ 
 
 unr city to- 
 
 morrow 
 
 to purchase goo<ls. 
 
 I shall 1).> 
 
 iiappj to acknowltMJirc ;i 
 
 s a favor M) 
 
 myself i 
 
 iiiy assistance that 
 
 you may !« 
 
 ahle to give iiim. 
 Yours respectfully, 
 
 
 
 
 
 JOHN CAMERON. 
 
 In addition to the orrliiiary sufwrscriptlon |ila(f the exprewinn, " Intrniticiiiri A. S. Tntiliir, I'.tq., 
 Clinton" near the hottoni of tlie ciivelojM' and to the left. 
 
 Ne\ er intro<liice one unworthy «)f confidence. 
 
 Do not n«r|>t a letter of intnvliiction from an nnreliahle person. 
 
 Do not intrmluce parties unless the ac uaintance thus tornu-d is likely to be agreeable, oradvan 
 ta^eoUH to both. 
 
 Letter of IntroducJioyi I I'mrriiuj Linhi/ity. 
 
 ,, T I T> Clinton, May 11, 1887. 
 
 Mes^^rs. Ivison tfe Prai-t, •' 
 
 Toronto, Out. 
 
 Gentlemen, — 
 
 Allow ine to introduce- tlie Imarer, Mr. A. S. Taylor, a niorchant of shis 
 
 town. You may con.sidt>r me responsil>!e for go(Mls that he may huy from 
 
 you, to the amount of live hundred doihirs. 
 
 Yours re.-'jH'ctfully, 
 
 .JOHN C.\MKK<»N. 
 
 Su'-h letters as the foregoinp, involvinif pifuniary interests, should be given only to resjionsible 
 parties. (Jrcat care nhould be exerciaetl in ibis. 
 
 EXERCISE 1. 
 
 Cn the 30th of June, 18S7, A. S. Taylor failed. Resources, S7,000> 
 Liabilities, §!»,0U0. Ivi.son A Pratt's account against him is §900. Writo 
 their letter to John Cameron. 
 
 Requesting to have an Acrmint Opened and Ordering Goods. 
 
 Woodstock, June 10, 188'i 
 MKSaks. Sallows it Co., 
 
 Montreal, P.Q. 
 Gentlemen, — 
 
 Having opened a boot and shoe store in chia town, I desire to open au 
 account with you. 
 
148 
 
 BOOK-KKEPIKR. 
 
 Foi' iiiforiiiJition in regard to my standing financially, I \tcg leave to 
 refer you to I). C. Mc"Muri,-liy of your fity. 
 
 If you decide favorably, jijeaso forwaitl iniino<liately liy express — 
 
 iL'Oi.rs. Men's lUiffUals., 
 
 100 " " (laiters. 
 
 120 " Women's French Kid Hals. 
 
 Yours truly, 
 
 JAMKS DOTY. 
 
 m 
 
 Reply to the Foregoing. 
 
 Montreal, June 14, 1887. 
 Mr. James Doty, 
 
 Woodstock, Ont. 
 
 Dear Sir,— 
 
 Yfmrs of the 10th instant at hantl, for which favor please accept our 
 thanks. 
 
 Having referred to Mr. McMurchy as to your standing, Ac, we take 
 pleasure in placing your name on our list of customers. 
 
 Enclosed you will find Invoice of Gtxxls shipped this morning, as per 
 
 your oi"der. 
 
 Very respectfully, 
 
 SALLOWS & CO. 
 
 EXERCISE II. 
 
 Write a letter from Sallows it Co. to Doty, refusing to .send him goods 
 on credit, and assigning reasons. 
 
 Order for Goods. 
 
 Port Eujin, May 12, 1887. 
 Messrs. Gilroy k Johnson, 
 
 Hamilton, Ont. 
 (Ientlemen, — 
 
 Please forward by express the following goods : 
 
 2 Half Chests Oolong Tea, 
 
 3 Bags Rio Coffee. 
 
 Draw on us at 30 days' sight, and oblige, 
 
 Yours truly, 
 
 KENXEDY & McKAY. 
 
 bi UliaK out an order care must be taken to write plainlj and irive all the dUtinfuiahinf marks, 
 Ik. laattantioB to thia ia often followed by ecrioui iuoonrenienuc. 
 
BOOK KF.RPINO. 149 
 
 Reply to tliA foregoing. 
 
 Hamilton, May 14, 1887. 
 Messrs. Kennedy ife McKay, 
 
 Port Elgin, Ont. 
 Gentlemen, — 
 
 EiKlose<l please find Invoice anfl Hill of Lading of Go«k!.s shippod to 
 y<m this day, as per your onler of the 12th inst., which g.MxLs wo hope 
 will piove satisfactory. 
 
 At y.mr request we send draft at 30 diys' sight. Plejise accept the 
 sjime and remit at your earliest convenience. Soliciting your furtluM 
 oi-ders, we remain. 
 
 Yours truly, 
 
 (ULItOY & JOHNSON. 
 
 Ad goon as ooiiveniont after the recfipt of ^thkU, Uirv shoiiM lie fxamined to mp wlipfh.r <(.,..• 
 uaree with the liuoice or not. If fouml c-orn-ct the inini,-,. »hoiii.| he "ni.irkert " ami the i.r.ii.Jr .m.ri i 
 iiia<le in the iKwks. It not, the house supplj inj; the broods should \k notitieii of the error at oiiee. "ie 
 
 EXERCISE III. 
 
 Write a letter to your employer asking for an increase of salary, statin" 
 reiisons. ' ° 
 
 Letter Acknoirl edging lleceijd of Goods. 
 
 Messrs. Fraseb & Munro, Oitawa, Sept. 10, 1,S.S7. 
 
 Montreal, Que. 
 Gentlemen, — 
 
 Yours of the 14th inst., advising me of shipment of goods, came to 
 hand yesterday. 
 
 The goods have arrive<l to-day in excellent comlition, and I am well 
 satisfied with them. 
 
 Yours respectfully. 
 
 G. M. BATES. 
 
 Letter Complaining of an Error in a JiiU. 
 
 A. S. Lawrence, 
 
 Hamilton, Ont. 
 Dear Sir,— 
 
 Owen Sound, Jan. 22, 1887. 
 
 In your bill of the 15th inst., I am chargetl with 2 Bags Rio Coffee 
 which I neither ordered nor received. Kindly make the neoessarv corn.. ' 
 
 necessary correc- 
 
 tion and return the bill, which I enclose herewith. 
 
 VeiT' truly yours, 
 
 KDWARD GRAHAM. 
 
150 
 
 bOOK KEEPiNC. 
 
 
 
 p. J 
 
 KXERCISE IV. 
 
 Write Lawrence's reply ii.i'l also Graham's acknowledgment of the 
 coriection made. 
 
 Letter Enclosing Payment for Goods. 
 
 ,, Ti . i-i Brockville, Au)?. 8, 1887. 
 
 Messrs. Pratt <k Co.; ° 
 
 Oshawa, Ont, 
 
 Grntlemen,- - 
 
 Enclosed find a draft for $130, the amount of your bill of the 5th inst. 
 
 Please receipt the l)ill which I send herewith, and return it to 
 
 Yours Ac, 
 
 A. ROBINSON. 
 
 PaynientH shoulil lie made on the very day a;,'ruiil \i)Kjn. Tf that is not jifiasihlc, a > I'linuinication 
 explaining the matter must lie sent iiriini|itly to the creditor. Tliomuytily traintKl i.usinewi nun 
 •'never put off till to-morrow what Hhould he done to-day." 
 
 Letter Eaclosiny a Ittmiltauce. 
 
 ., ._, -^ Winnipeg, May 12, 1887. 
 
 John Fisher, Esq., •' 
 
 Emerson, Man. 
 Dear Sir,^ 
 
 Herewith I send a draft on Harrison &. Wilson, of your town, for 
 $35.40, to close my account. Please send a receipt in full of all demands 
 to date, and ol'ige, 
 
 Your obedient servant, 
 
 ALEX. ROSS. 
 
 
 Letter Renuestiuij a Iteniittance. 
 
 St. Catharines, June 1, 1887. 
 Geobgk C. Leeds, Esq., 
 
 Grimsby, Ont. 
 Dear Sir, — 
 
 We desire to call your attention to the enclosetl statement of account 
 shewing a balance in our favor of $140.50. 
 
 By remitting the amount at your earliest possible conveiiion<i-, \i)u 
 will oblige. 
 
 Yours respectfully, 
 
 PHKLPs & oni;. 
 
 EXERCISE V. 
 
 Write Leeds' reply if he finds that the statement doea not agree witli 
 his own books. 
 
BOOK K KEPI JJG. 
 
 Reply. 
 
 151 
 
 GuiMsiiv, Juno 3, 1887. 
 
 Messrs. Phelps A- Okr, 
 
 Ht.Ciitharines, Out. 
 Gentlemen, — 
 
 Yours of the 1st inst. m,ue,stin,i,' .i .settlement of accoum, to Ii.i.,<l F 
 am sorrv that I cannot remit hefo.e tl..' 10th inst. If you %vill n..t press 
 the matter until that date, yuu will -r.'.itly (>l.li;,'e. 
 
 Yours truly, 
 
 GKO. C. I.KEDS. 
 
 EXERCISE VI. 
 
 1. Write a letter to Wm. Taylor, Hamilton, retiuesting a statement of 
 account. 
 
 2. Write Taylor's reply ent-losint,' .statement. 
 
 3. Write a l.-lter t<, Wm. Taylor endosing a .Iraft f..r the amount 
 due him. 
 
 4. Write Tayloi's acknowledgment of the remittance. 
 
 Requestintj PaijineHt. 
 
 Joseph Emeiison, E.s(^, <^^^v.s Sound, May 20, 1887. 
 
 Southampton, Out. 
 Dear Sir, — ■ 
 
 As we have several large payments to make on the lirst day of June, we 
 are reluctantly con.pelled to ask you to .settle vour account (as per enclosed 
 statement) in the meantime. Ijy attending t., the matter vou will greatly 
 oblige, ~ b ] 
 
 Youis respectfully, 
 
 AdaMSOX k CO. 
 
 To neglect replying- at on,« to a Icur like tl,e (..ejjo.ng is al„,o.t sure to Iea.1 to unple^antne,.. 
 
 Uryenthj Rfqwstintj Paijment. 
 
 Joseph Emerson, Esq., Owen Sound, Juno 2, 1S87. 
 
 Southampton, (tiii. 
 Dear Sir, — 
 
 Permit us to call your attention to our letter of fho ^Oth nU .^.skin- 
 you to settle your account, which is long jwist du... 
 
 By remitting immediately v.- will .save costs, and ohli-r,. 
 
 Yours, «fec., 
 
 A DAMSON' t CO. 
 
153 
 
 BOOK-KEEriNQ. 
 
 Notice of Draft. 
 
 Clinton, May 24, 1887. 
 
 Messrs. Taylor k Co., 
 
 St. Catiiarines, Ont. 
 
 (lENTLEMEN, — 
 
 We have this day drawn on you in favor of A. S. Embury at 30 dayrf 
 sight, for $120. Please lionor and oblige, 
 
 Yours very truly, 
 
 , MANNING ft SCOTT. 
 
 / 
 
 \ 
 
 - — ^ NUice of It iJishoitored Xote. 
 
 (iALT, July 11, 1?<S7. 
 
 H. C. Cameron, Esy., 
 
 Paris, Out. 
 
 Dear Sir, — . 
 
 Havin« presento.1 f..r paynu-nt, .Tan.es Callan's note for iplOO, in.lorsed 
 bv vou he state<l he couKl not piy it. T shall, therefore, reluctantly be 
 obliged to look to you f..r payment, liy attending to the matter innuedi- 
 
 ately you will oblige. 
 
 Yours respectiully, 
 
 J. P. KEOWEN. 
 
 Application for a Silvation an Book-keeper. 
 
 Clinton, June 17,1 887. 
 
 J. C. Richardson, Esq., 
 
 Walkerton, Ont. 
 
 Dear Sir, - „ , » x. i 
 
 In reply to your advertisement in the Globe of to^lay, for a boolc- 
 k.'cper, I beg leave to offer you my services. 
 
 Just after taking a thorough course at the Clinton High School four 
 years ago, in commercial work, I tecame assistant book-keeper for Mdler 
 i Gre^jrv. of this town, continuing in their employ ever since. Please 
 and enclosed their testimonial as to my characiei', ability, ic. 
 
 If I am successful in this application, I shall enter upon my dutie. 
 determined to discharge them faithfully. 
 
 Your obedient servant, 
 
 L. M. HAY. 
 
IIUOK KF.KriNQ. 
 
 IAS 
 
 Application for a Situation as Teac/ier 
 
 Paisley, May 1? 1887, 
 J AS. H. Scott, Esq., 
 
 Sec. P. S. I?., 
 
 Suininerside, Ont. 
 Deau Sir, — 
 
 In reply to your advertisoinent in the Dail// Midi of to diy T licrrliy 
 respectfully oifer myself as a candidate for the vacancy in your school. 
 
 I hold a First-Class Professional Teacher's CJertificjite (Grade t , and 1 
 have five yeai-s' experience, as is shewn by the enclosed testimonials, to 
 which I l)eg leave to refer you. 
 
 Should T l)e honored with the appointment, I shall take charge with 
 both the determination and contidence that my .s«Mvices will j)rove satis- 
 factoiy to all concerned. 
 
 I have the honor to In-, 
 
 Your obeiUent servant, 
 
 TETER CKAMVVELL 
 
 EXERCISE VIL 
 
 Write a letter to the headmaster of tlie school you have been attend- 
 ing, requesting him to give you a recommendation. 
 
 Recovimending a Teacher. 
 
 MiLLBANK, June l.">, 1887. 
 
 To WHOM IT MAY CON'CERV, 
 
 This certifies that Mr. C. H. Cann taught as principal of the public 
 school here for four years, and tliat during that time he proved himself an 
 earnest, painstaking, and successful teacher. 
 
 Mr. Cann is a gentlemen whose character is above reproach, and he is 
 thoroughly devoted to his profession. I have tiierefore much pleasure in 
 i-ecomipending him as a first-chiHS teat'lu-i, w!io will always have the mural 
 as well as the mental interests of his pupils at heart. 
 
 .1. S. SIMPSON, 
 
 Chairman P. S. B. 
 
 Millbank, Onl. 
 
1^ 
 
 1S4 HOOK KKKPINR. 
 
 CcUling a JJusiiiena Meeting. 
 
 KivcARDiNK, June 23, 1887. 
 James Milleb, Esq., 
 
 Dear Sir, - 
 
 There will Ihj a specml meeting of the High Schfxd PJoanl held in the 
 Council Clmniher, iit S o'cl(K;k to-night. You are respectfully re4uestea 
 to attend. 
 
 Yours truly, 
 
 A. M. SHIELDS, 
 
 Sec. H. S. B. 
 
 I^ote of Invitation. 
 
 Miss Maggie McGregor iviiuests the pleasure of Mr. William Young's 
 company next Tuesday evening at eight o'clock. 
 
 28 Welland Ave., June 9. 
 
 Ansv-er (Accepting), 
 
 Mr. William Young presents his compliments to Miss ^Maggie Mc- 
 Gregor, and has much pleasure in accepting her kind iuvitatiuii for next 
 Tuesday evening. 
 
 204 St. Paul St., June 10. 
 
 Answer (Declining). 
 
 Mr. William Young presents his compliments to Miss Maggie Mc 
 Gregor, and deeply regrets that, owing to a previous engagement, h« 
 cannot accept her kind invitation for next Tuesday evening. 
 
 204 St. Paul St., June 10. 
 
 EXERCISE Vin. 
 
 Write a note of invitation to a birthday party. 
 
 Give a reply accepting the invitation, and one declining it. 
 
 EXERCISE 
 
 Amoldus Thomas is a dry goods merchant in the town of Walkerton. 
 Write for him a circular to hi? customers announcing the arrival of hia 
 ■pring goods. 
 
BOOK KRKPIHO. 
 
 Ift: 
 
 EZEBCISB X. 
 Answer one of the following julvertisements : 
 
 "Wanted.— A young girl us s;ile8woman and assistant book-keppor in 
 a m.llmery establishment. Ad<lres«, giving t^stin.onials and full r-w- 
 Esk'L'le Ont^ ''^' ^'"'^*'""' exppriencP, Ac, Mrs. H. A. MacLean, 
 
 " Wanted.— In a law office, a U,y nhout 15 years .,f age, who is a fi.ir 
 rslIirWalke?!^'''''^ ^'^*"'*^ pTticuIurs, to bo addresse^l to llobinson 
 
 EXERCISE XL 
 
 Write a letter to a friend in Win,M|K.g, telling hin, that you have smne 
 noti.,,1 of l.Kating there, and stating the anu.unt ,.f capital you wish to 
 invest, ti.e hno ot business you i.rn,mse to pursue, A-c. Ask him for such 
 information as may help you to ilecide ujx.n what to do. 
 
 EXERCISE XII. 
 Write an aflvertisement under the heading, "Store to Rent." 
 
 EXERCISE XIII. 
 
 B. A. Young, of ^ranchester, telegraplis to .Afuir .t Co., of Tor..nto re- 
 questing them to send at once, by express, W packages Canned Sahnon, 
 an.l to dniw on h.m at ten days. Write the telegram, which must not 
 consist of more than ten words. 
 
 EXERCISE XIV. 
 
 an J™T ""'I •''"•'■ ^•"■?' ^'"' ^■''^!^'^' '■""''•^ •"^' >" P--*>-'"^"fc ^2,000 cash, 
 and a mortgage l^e mng inte,-cst at « ' for $3,000. ^^•,•ite a telegram not 
 
 IhT^^iluZr *" ^'■''''"' ^^""^"' Oresham, informing ^m of all 
 
 EXERCIJiB XV. 
 Write an advertiacmeub under the hea.ling, "Farm for SaJe." 
 
 rton. 
 f his 
 
IM 
 
 BOOK-KKSriMa 
 
 I 
 
 m 
 t 
 
 CHAPTEE XI. 
 
 Acct, Account 
 Acc'nt., Accountant. 
 Adv., Atlventure. 
 Agt, Agt-nt. 
 Amt, Amount. 
 Ans., Aniiwur. 
 Ap., April. 
 Aug., August. 
 Av., Average. 
 
 BoL, Balance. 
 B.B., Bill Hook. 
 Bbl., Barrel. 
 Bk., Bank. 
 B.F., Bilb I'ayable. 
 B.U., Bills Keceiva»>le. 
 Bl'k, Black. 
 Bot., Bought. 
 Brot., Brought. 
 
 ABBREVIATIONS. 
 
 Esq., Ilsquire. 
 Exp., Expenses. 
 
 Feb., Febuiary. 
 Fir., Firkiii. 
 F.o.b.. Free on Boanl. 
 FoL, Folio. 
 Fw'j, Forwanl. 
 For., Foreign. 
 Fri., Friday. 
 Ft, Freight. 
 
 Gal., Calloii. 
 
 (len. li., (Jeneiiil Ledger. 
 
 (iuin., (luineu. 
 
 Hdkf., Han.lkerchief. 
 Hhd., liogsiieail. 
 Huml., Hundred. 
 
 Cap., Capital. 
 
 C.B., Cash Book. 
 
 CD., Certiticate of Deposit 
 
 Clk., Clerk. 
 
 Chgd., Charged. 
 
 Co., Company. 
 
 C.C., Account Current 
 
 CO. D., Collect on Delive.y. 
 
 Com., Commission. 
 
 Con^., Consignment 
 
 Cts., Cents. 
 
 Cwt., Hundredweight. 
 
 D., Pence. 
 D or d. Day. 
 D.B., Day Book. 
 Dec, Deueml)er. 
 Dft, Draft. 
 Dis., Discount. 
 Div., Dividend. 
 Do., Tlie Same. 
 Dols. or $, Dollars. 
 Doz., Doiien. 
 
 E. & O. K-, F.rrors and 
 Omissions Excepted. 
 Ra., Each. 
 Ext'd, Extend. 
 Exch., Exchange. 
 
 1. B., Invoice Bm)k. 
 i.e.. That is. 
 Inst., instant. 
 Int. Interest. 
 In v.. Invoice. 
 Invty.p Inventory. 
 
 J. , Journal. 
 Jan., January. 
 J.F., Journal Folio. 
 
 Lbs., Pounds. 
 L.B., Ixitter Book. 
 L.F., ledger Folio. 
 L. & G., Loss and Gain. 
 
 M., Thousand. 
 Mar., March. 
 Mem., Memorandum. 
 Mft'g, Manufacturing. 
 Mo., Month. 
 
 N.B., Take Notice. 
 No., NumlxT. 
 Nov., November. 
 
 Oct., October. 
 O.B., Order Book. 
 O.I.B., Outward Invoice B 
 Oz., Ounce. 
 
 P., Page. 
 
 P.C.B., Petty Cash Book. 
 
 Pes., Pieces. 
 
 IM , Paid. 
 
 Per, By. 
 
 I'.B., Pass B<K)k. 
 
 Pkg., Package. 
 
 P.O., Post «)thce. 
 
 Pol., Policy. 
 
 Preni., Premium. 
 
 Prox., Next Month. 
 
 I'tH., Pints. 
 
 Qr., Quarter, 
 gt, Quart 
 
 l!.B , Ileceipt Book. 
 Uce'd, Received. 
 Hec'pt, Receipt. 
 Reg., Register. 
 Rep., Representation, 
 lio.. Right-hand Page. 
 R.R., lUilroad. 
 
 Sat , Saturday. 
 S.B., .Sales Book. 
 Sec, Secretary. 
 Shipt., Shipment 
 Sq., S<iuare. 
 St., Street. 
 Stg., Sterling. 
 Sunds., Sundries. 
 
 T.B., Trial Balance. 
 Thurs., Thursday. 
 
 Ult, I^t Month. 
 
 Viz., Namely. 
 
 W.B., Way Bill. 
 Wed., Weilnesday. 
 Wt., Weight. 
 
 Yils., Yards. 
 Vr., Year. 
 
 (5, at 
 k. % , Per Cent 
 j/, Check Mark. 
 
BOOK-KUPINO. 
 
 MERCANTILE TERMS DBPINBD. 
 
 U7 
 
 ACCOUNT PUROH ASK- A fonual h ritt... statement 'ren-lero.! by a,, a^. nt t„ h". 
 princ.,«l. .hew.ng the c.«t of go.Hl. jmr.,ha«o.l. ^wXl all ™ '''f 
 
 charges connecte.l therewith. * ' ' **" *^" ** '"« '"'Ih'I'h.s ain4 
 
 • ACCOUNT SALKS -A written Btati-ment of m^l« .,.1,1 „„ „ . , . 
 
 quanffe.. prices, Ac. a« well a., all .harj^ron thc'L;:: ""•"""-««•• '''«'""« 
 
 /In^^I^T^Ji'iJ'ir'^ **'■'" '^f ^•^"'""'"8 K-^'- "♦^"t to U .01.1 on commiwion. 
 KJ^u V AliOKhM — According to value. 
 
 advice:— Information regarding a businets matter. 
 
 A<:KXT— One who has jx.wer to transact business for another. 
 
 ANNUITY -V-lue j.ayable at the expiration of certain i«riij<la of tim« A» - 
 
 ity may be payable yearly, half-yearly, quarterly Ac ^ """*' 
 
 ASSESSMKNT-n.e valuation of the property of those who are to ,«y . tax. for th, 
 
 purpose of lixmg f ho proix.rtion which each shall pay. " "^ 1"*^ » «*^ ^ "e 
 
 fr ASSETS- AU values belonging to a person, tirin, or c.rporation. 
 
 , ASSIGN^P:E-^^p..on^a,.^^ another to perform, soma buainess. One to 
 
 ' ^'^^^uJ^X::^:fJi!:^S'^y -^ * bankrupt to another in whom it 
 C ASSIGNOR— One who transfers an interest to another. 
 C ATTACHMENT— A seizure of goods by virtue of legal prooesfc 
 C AUDIT— To examine accounts and testify to their correctness 
 AVERAGING AN ACCOUNT— Findine the time at whini, » k«> 1. 1 t 
 
 m.y be paid, so that neither ^S -ter/^^Iy^'^'^u^^^^^^^^ "^ *" '^"""'* 
 
 "^""'-^Sr^s™ ano^hlr.' '''"^^"""'-•'^ '"'"^■^" ^'"""^ *»•» i."IK.rts of one country 
 C BALANCEJHEET-A statement in Tabulated form, shewing fully the condition 
 
 ^'''^an^d'S^^tFdT'mo7ey!"*' """^' '^ '^ '"'"'■ P»y*»>'« *« »--' - <l-«.d. 
 C BANK BOOK-A small book held by the depositor, into which deposits are ent.rcd 
 by the ba..k ofhc.als as they are n.a,Je. At stated times it iT handed," crt 
 
 2l .^tuLT" '^ '^^''^ ^"'^ '^"'"'' *' '"'•1 tHe vJuXr 
 
 C-BANKKUPT— Unable to pay debts. 
 BARTER — To exchange one commodity for another. 
 BILL — A detailed statement of goods bought or sold. 
 BILL OP ENTRY-A written statement of gcxnU entered at a cnstom honae. 
 
 TT" 
 
If ■ 
 
 15« 
 
 BOOK KKKPINO. 
 
 it 
 
 I'llLIi <»F I.ADIN<^— A written Htat<nu'»it tiigiipil l>y tln> iiiit»tcr of .i vi'nwl mknow- 
 ti'il^irig the i'('<'<-i|>t of ^'hhIh on IkiiiiI, ami »uri-i'iii^, iiii<lrr lu-rtniii cninlittonH, 
 to lirllVf^r thflll Hilt'i! to till' IHTMoli to ulioiil tliry ari' ilnrrtcil. 
 
 HILL or SAI.K--A contract uuUur seal, l>y which a pfmoii convoys hia title to 
 
 pnj|Mrty. 
 BLANK CKEDIT— Pennigsion to draw on a jitrxon or firm to » ii|)«<iti<(l amount. 
 \V >M) A written obligation uuiliT miil to jiay a kuiii or jM-rfoi'm a lontiart 
 IM>NI)KI) (i<»(»I)S- CoimIs left in <^hi»rK«; of the ollieerH of cuntouiH, for the dutivM on 
 
 which ImukU arc given at the cuHtoiu lioiine. 
 IMlNDKD VVAnKIlOlTSK A warehouse in which gmMls are kept for security of the 
 
 duties chargeablt) on them. 
 BOTTOMRY BOND -A lien on a vessel as security for money ]<nt to the owner, 
 
 the umlerstaiidinn being that if the vetssel is lost on the voyage, the luouey 
 
 will not l)e refunded. 
 BROKKIv — One who buys and sells j)ro|(<Tty for others. 
 BttOKEKAOK— The percentage paid to a loiiker for his services. 
 
 CAPITAL — The effects invested in any buKiness. 
 CAlUiO— The gootls or wares conveyi il in a ship. 
 ^ CASH DISCOUNT— An allowance mailo lor payment within a specified time, or for 
 
 payment of ready money. 
 C CEUTIFIKD CHECK An order on a bank, which is marked "goo*!" by the 
 
 cashier, the b.ink being thus n.'ade resjHinKible for its payment, 
 c CERT1FIC.\TE OF DEPOSIT— .\ re cipt given by a bank.r to a de|K>gitor as his 
 voucher for value deposited. 
 CHARTP-R PARTY — .An agreement Intweeu the owner of a vessel and the person 
 
 to whom she is chartered. 
 CHATTELS -Movable projMjrty. 
 
 CH.\TTEL NOTE— One jiayalde otherwise than in i ley. 
 
 CHECK— An order on a bank. (See page fl'J ) 
 
 CIRCULAR LETTFIR— .\ jirinteil t.iieet issued by a house for a special purjKwe, 
 
 such as notifying customers of the arrival of goods, etc. 
 CIRCULATIN* J MEDIUM — Whatever passes as money ; su-h as, bank notes, bank 
 
 drafts payable on <leniand, etc. 
 CLEARANCE -A certificate from a custom liouse that a vessel has jKrmissiou to sail. 
 COCKET -A custo.n house certificate that goods have been »luly entered. 
 COMMERCIAL PAPER rmmissory not-s, drafts, bills of exchange, checks, *o 
 All paper whieli can be transferred fi un one to another as vahie. 
 C^ COMMISSION — An allowance to an agent for services rendered. 
 
 COMPOSITION — The act of discharging a debt by paying a part of it. 
 COMPROMISE— To settle a dispute by mutu.-il concession. 
 
 CONSIGNEE —One to \\ bora goods are sent to Imj sold for another. One to whom a 
 ships cargo is directed. 
 c- CONSIGNMENT — <:ood« receiveil to be sold on commission. 
 CONSIGNOR — One who consit^ns i;oi..l» to another. 
 CONTRABAND TR.XDE— The exporting or importing of good* illegally. Trade 
 
 prohibited by law. 
 CORPORATION A society legally authorized to transact business as an individual 
 
BOOK KKKPINfJ, 
 
 15^ 
 
 nniTNTKRMAND -A revocti.w ..f a f..rm.r r^nl-r. S.>,„,.ti,„P« trr„.,-,l " . „„„t«r 
 
 e (!(HH'0\ -(hie of the ccrtitionU'H .,f ii.t.r. st attuh. .1 t,. a l«,„.l. Kv.ry time that 
 Hiterent falln .lu«. ,„m w.ll l.« t.ik. » „rta..,l pre«e„te.l for i.ay.i..Mt. 
 CKKDrr To tr«,t To i.la,-.. t., the .n-lit ni.!.. of an a.,.o„„t. Tl... ,i.k. of an a,-c-ount 
 will, h 8hcwg the aim.iint -In., th„ j.. !•>..„. or thing r. i.r.«i,t. .1. 
 
 ^''^^"IIoth.T"'"'^" ''^■'""•"''•■'^""'"' "f ^"' '•^'■•"- "' "-uunl to K-l. M.>,.,»..1 to 
 
 I^r Pp'Jvri\~"r "**"* ''■'" *'''"" '"'"'■ *" •'"'""''■'■ ^'""'"* receiviiiK i«iyn,ent for it. 
 < I l.lih.\( \ -Hut which |i.is.so» in a coimfry an iiiormy. 
 
 f'T'fUlK.VT PIMCK— The orditmry price at thf time nfcrrcl to, 
 
 ^'^ '''^ colUu!!.'"'*'^"^^'' '''"■''" '''''"' *^'""'* "'■'-' '"'*'■''' ■""' '''" '*"'*«• "I-" thrm 
 
 <-DAYS OF GRAfF^The ti,„c allow..! for the payn.. „t of a noto ,.r 1,111 aft.r it Ik- 
 ,*"•"•■" '"■"""•■'II.V ■ ...• In Canacla th... aro thr..- ,lav. of «ra. o „.ven. , ,.. a l.ll 
 beconifs ,ln.- .... the th,..l ,l,.y after th,,- ti....,- .•x,.rcs.....l mil .„.. xi.it, ,1. 
 
 ^'^'"'^Zey L;oi"'"'''' ""'"' ''^ '^ """•'"'>' •"• •"""i'^il-1' V - -ur.ty f..r 
 
 DEBIT-The^giae of an acct. Hhfwiug inachtu.UicM. To nuu.- an c.|>.-y .... .he 
 
 DKBTOR— One who owes another. 
 '^nl^u^l'"''^"'^" ••allowance n»a.le f.,r the payment of a .leht tH-fore it Lecm s ,1,,,. 
 ""Ivinvv '"''"" '"''"'" *" "'■'''''* " '''"•'^' '"■ !"'>' •■»" •■»''-^pt'""-'>. >'"te or -i,... U 
 
 ' ' ™;r;?{L:t:^Xa^"'*^'^-'''''^ "^ ^^ -'""'H- Thei..t..r..stpa..ltothe 
 
 DOCCMHXT— A writing cntaiuin^ iuf...-...ation, evi.lence ..r .lirccti....-, 
 "" ^^^ZZthJ"^^" ""'*"' ^'" *''" P*^"""* "^ '""""^ a'l.lresHed l.y one person to 
 t DR.WVKE— The {K^rson ..n whom the draft in .Irawn. 
 C IMi.WVKli- The one who diaws on another. 
 
 ^^^'^^ amailml'lld.^*''''*''" ''""''^ ''*' " ''^''^"" '"■ ''™' '^^"«'-' «"an^-i»l standing in not 
 c DUTY-Money pawl to the fJovcrnmeiit of a country on good- imiK>rtcd or exj-orte.!. 
 
 EFFECTS — All values belonging to a concern. 
 
 '='EMBAR(iO_A restraint i.npo«ed hy the public authorities of a country on v. ,,ela to 
 prevent their Hailing to or from its j.orts. t-ia w# 
 
 ^INDORSE — To write one s nanic on the h'lelt ^.f .. J.ili t, i ■< , , 
 
 +1 . . , c .1, ,' " '■'"■ "''<-'^ oi a ■'"'• lo become respouiii bio for 
 
 th«3 payment of a lull. (See j..ige ;'><>. ) ^ 
 
 *T':XCISE— A tax levied on commo<litie3 pr.Kluced within a country. 
 
 .,EXCHAXGE-The method of settling .lebts by means of bill., when the debtors and 
 creditors live m diHereut countries. 
 
 FAC SIMILE— An exact copy. 
 
 FIXANCES— The income or effects of a firm or individuaL 
 
 ^^^^^bwil^*™* ""^e"" which an associatioa ia known, in th« tnmsactiag «t 
 
160 
 
 BOOK-KEEPING. 
 
 HRST-HATE PAPER— Bill*, notes, checks, etc., issueil by a house of good financial 
 
 standing. 
 PLAT- Dull. 
 FOLIO— The left and nr;ht hand pages of an account 1>n<>k, when both are numbered 
 
 by the same figure. 
 FORECLOSE — When applied to a mortgage means to <lf]irive the mortgagor of th» 
 
 right of redemption. 
 FOREIGN BILL OF EXCHANGE— A bill payable in a different country from tlie 
 
 one ill which it is made. 
 FREE TUAUE— (Commerce carried on between two countries without being restricted 
 
 by customs or duties. 
 FREIGHT — The sum charged for the transportatioa of goods. 
 
 GARNISHEE — A person whc holds value belonging to a second, and who has re- 
 ceived warning or garninhmeiit not to pay or deliver it, owing to a claim 
 made by a third person (the primary creditor) against the second (the primary 
 debtor). 
 
 GOOD WILL — The advantage or benefit which ic acquired by an establishment 
 beyond the value of its capital, in consequenue of the public patronage it 
 receives. 
 
 GUARANTEE — An undertaking to answer for the payment of a debt, or the per- 
 formance of some <luty in case of the failure of another liable for such. 
 
 V't 
 
 HONOR— As applied to drafts and notes means to accept, or pay when due. 
 
 C HYPOTHECATE— To give as security for the payment of money without giving 
 actual possession. 
 
 IMPOST— A rate imposed. 
 
 INDIVIDUAL NOTE— A promissory note signed by only one person, 
 c- INSOLVENT — Having a greater amount of liabilities than of resources. 
 CINSTALMENT— A part of a debt to be paid at a stiitcd time, 
 c INSURANCE — The sum paid for insuring profierty or life. 
 C INTEREST— A sum paid for the use of money. 
 C INVENTORY — A statement of goods on hand. 
 f INVOICE— A list of goods purchased. 
 
 LEASE— A contract by which the possession of property is given for a stated time 
 7jE<JA(JY — Money or property allowed by a will or testament. 
 
 i^ETTER t)F ATTORNEY— A writing by which one person authorizes another to 
 transact business for him. 
 C- LETTER OF CREDIT — A letter requesting the person addres-sed to credit another 
 whose name is mentioned in it, with a ceitain amount. 
 LETTER OF LICENSE — An instrument by wliich creditors allow a debtor, who has 
 failed, to conduct his Imsiu ss without interference. 
 C LIABILITIES — Debts or claims against a person or firm. 
 
 UKX_A. legal clum. A charge ujwn property for the witisfactio* of a debt. 
 f_ LIQUIDATION— The Bettlenent of a debt 
 
BOOK-KREPINO. 
 
 161 
 
 MAXIFEST— An iiivoi.e or list of the cargo of a •hip. with the markf., nuiiii.er. an.l 
 descnption, of each article or i>ackage, to bo cxhibitcil at tlus Cimtfuii Houne. 
 CMATURITY— The time at wiiich a hill iK-comcH due 
 
 MERCHANDISE— A general term denoting commodities iM.ught or sold. 
 C-MORTCJAGE— The conveyance of an estate to a creditor, for the security .f a <lebt 
 upon conthtion that the claim thus given Ijecomes void on pavnil la of th- 
 debt. ' "^ 
 
 MORTGACJEE— A jierson to whom a mortgage is given. 
 MORTOACiOR — One who gives a mortgage. 
 
 NEGOTIABLE— Transferable Irom one to another. 
 
 NET PROCEEDS— That amount which remains after deducting all charges 
 
 NET WEIGHT— The weight after making all allow auces. 
 
 NON-CLAIM — The failure to make a claim within the time limited by law. 
 
 NOTARY PUBLIC— An officer authorized to attest contracts or writings of any 
 
 kind. His duties chiefly relate to instrumentM used in commercial transa<;tionn 
 
 such as protests of negotiable i>ai)er, *c. 
 
 NOTE— To record on the back of a bill a refusal of acceptance. A written promise 
 to pay in money. (See Promissory Note.) 
 
 OBLIGATION — That which legally binds a person tf) perfoim a duty. 
 
 ORDER— A written request or demand for the payment of irioney or the delivery ot 
 goods. 
 
 OPEN POLICY OP INSTJRANCE-A policy uimn which the amounts of the 
 perty insured are extended from time to time. 
 
 pro- 
 
 1 
 
 C PAR OF EXCHANGE — The equivalence of a certain amount of the currency of one 
 country in the currency of another. 
 
 PARTIAL PAYMENTS— Payment of a debt by parts at diflTerent times. 
 
 PARTNERSHIP — The union of two or more iierKoiis for the puri>ose of transactinL; 
 
 business, the profits to be shared by each. 
 PAYl : is — The one to whom a bill is paj able. 
 PER CENT. (% )— By the hundred. 
 
 I'ERSONAL ACCOUNT— .\n account kept with a person, firm, or coriM. ration. 
 POLICY— An instrument containing tlie condition.s or t^rias on wliicli <>iik purtv 
 
 agrees to indemnify anotlier a^'iiiiist Iohs. 
 
 POSTING— Transferring to the ledger. 
 
 '^ l"i >VVER OF ATTORNEY— An iu-.trument legally am hori/ii.g one j.er«on t<i trannact 
 business for another. 
 
 PREMIUM— The amount paid by the insured to the insurer. Value alM)ve nominal 
 price. 
 
 ^PRIVATE ACCOUNT— An account kept with the propr..-tor in which to enter all 
 '^ amounts taken out of the business tor )>rivate use. 
 
 PROMISSORY NOTE— A written promise to pay unconditionally a certain sum of 
 ^ money at a sfHicilied time. 
 
 _^ PROTEST— A declaration in writing made by a notary pubhc on l>ehalf of the hoMer 
 of a bill or note, that all jKirties to it will be hehl resjiouaible for any losaei 
 Bustaiued. ou account of its non-acceptance cr non-payment, 
 
 IS 
 
 
 P-*i" 
 
 frrfnra 
 
161 
 
 BUOK-KEEPINQ. 
 
 REAL ACCOUNT — One which shews (penerally) a resource or liability, hy the i\'iT. 
 ^ ference between its siiles. ('a«li, Bills Kec., liills Pay., are examiiles of Itcul 
 
 accouiils. 
 
 «^ REBATE — An auiouat thrown ofiFthc regular price. 
 RECEIPT — An acki.owledgment in writing of having received a sum of money or 
 
 other valuable consideration. 
 REMITTANCE— Value sent from one to another. 
 
 RENEWAL OF A BiLL— The issuing of a new bill at the expiration of the term of 
 another, so as to give an extension of time for payment. 
 
 REPRESENTATIVE ACCOUNT— One to which a particular title is given. i«i that 
 the property belonging to it can be distinguisheil from other property of the 
 same kmd. Shipment, consignment, storaLce, insurance, &c., are examples. 
 
 C- RESOURCES — All financial values, either in a dealer's possession or owing to him by 
 others. 
 
 SALVAGE — A compensation for saving or preserving a ship or her cargo from loss. 
 SET OF EXCHANGE— A number of bills of the same date and tenor. When one 
 
 is paid the others are void, so that, in reality, the whole constitute but one 
 
 bill. (See Bill of Excliange. ) 
 SHIPMENT — Goods sent to an agent to be sold on commission. 
 SIGNATURE — The name of a person signed by liimself. 
 SINKING FUND — A sum of money set apart for the payment of a debt when it 
 
 becomes due. 
 <^SOLVENT— Able to pay all debts. 
 speculative; accounts— Those kept with property for the purpose of shewing 
 
 a loss or gain, such as nierchandisi bank stock, real estate, &c. 
 spot cash — Money paid at the time the transaction takes place. 
 STAPLE GOODS- The prin^ ipal connnodities proiluced in a country. Articles which 
 
 ure always m doniand. 
 stock — The whole amount of goods on hand. As a ledger title, " .Stock" represents 
 
 the name of the proprietor. 
 
 <^ST0RAGE — The amount received for keeping gocxls in a warehouse. 
 
 SURETY— One who binds liimself to perform a duty for another, if the latter should 
 fail to perform it. 
 
 I , 
 
 TARE — An allowance made on the gross weight of an article for the weight of the 
 
 chest, bag, etc., containing isuch article. 
 TARI'''!' — A list of <luties or customs to be paid on goods imported or exported. 
 TELLER An officer of a bank who counts over money received, and pays out money 
 
 on chtcka. 
 C TRADE DISCOUNT — An allowance of so nmch \yer cent, on the invoice price made 
 
 to dealers by wholesale houses. 
 TRANSFER — The legal conveyance of value from one to another. 
 
 <; UNDERWRITER— One who insures pro|)erty. 
 USURY—Exorbitant interest. 
 
 C VOUCHER — A bcok, paper, or document which serves to confirm the correctness of 
 an account or statement. 
 
INDEX. 
 
 Padk 
 
 Abbreviations \rAi 
 
 Acceptance 67, »iH 
 
 Acciiiumodation Notes .V2 
 
 Account Sales 8<», fHt, 10.') 
 
 AccDiiiits I 'lassitieil 37 
 
 Ac'ciiuuts Kxplaiiieil 2-11 
 
 Ailvice of Shipment 8!( 
 
 Averaging Accounts I4.'l 
 
 Hul Debts 1.18 
 
 ISiilance tSiieet Kxplaiiu-il lis 
 
 Balance Sheet, Examples of ... 1 1»>, I l"t 
 
 H:ink Account 21, .■12 
 
 Hanking I.StJ 
 
 H ink Check Hook KKi 
 
 Bank I'ass Book i;i(i 
 
 Bill B..ok .)8, 121 
 
 Bill of (ioods 44 
 
 Bills of Exchange 7.'1 
 
 Bills Payable Account 9, 22, ;il 
 
 Bills Receivable Account 7, 22, .11 
 
 Bonks i.8 Kviileiice in Court 140 
 
 Blanch Houses 141 
 
 Business ( 'orrespoiidence 14.5 
 
 Businees Forms . . 44 
 
 Cash Account 4,21, .10 
 
 Cash Book ">7. 78, 121, I2t! 
 
 Certified Checks 1.17, I.TS 
 
 Certificate of Deposit 1.1(5, l.")S 
 
 Changing from Double to .Single 
 
 Entry 1.1,5 
 
 Changing from Single to Double 
 
 Entry 
 
 Chattel Notes 
 
 Checks 
 
 Classified Statements 
 
 Classification of Accounts 30, 
 
 Closing tlie Ledger 37, 
 
 Combined Statement 
 
 t'omniission Invoice Book 
 
 Commission Sales Book 
 
 (Compound Average 
 
 Consignments 
 
 Correcting Errors 
 
 .52 
 .52 
 .^5 
 .S7 
 .5!> 
 44 
 •Hi 
 !Mi 
 144 
 8>S 
 34 
 
 Correspondence. 
 Credit, Delined. 
 Creilit Notes . . . 
 Cross Entries . . . 
 
 D.iy Book 10, 2.5, 
 
 Deposit .Slip 
 
 I )ebit, Detined 
 
 Detecting Errors 
 
 DiMCounting Notes, etc 
 
 Distinctiim between Single and 
 
 Doul)le Entry 
 
 Drafts 
 
 Drafts — Kuies for Journaliiiing. . . . 
 Due Bill 
 
 Exjiense Account 10, 22, 
 
 How to Deal with Bad Debts 
 
 Index to Ledger 2!l, .10, 
 
 1 ndorsements 
 
 Interest and Discount Account . , 
 
 Inventory liook (33, 
 
 Invoice Book 
 
 Invoices 
 
 .loint Accounts 
 
 .loint Notes .51, 
 
 •loint-Stock Companies 
 
 .lournal 1:», 27, 
 
 .lournal Day Book 
 
 Journalizing, Itules for 
 
 W, 87, 88, 
 
 Faii» 
 
 14.5 
 
 2(1 
 
 48 
 
 1.18 
 
 121 
 l.Ki 
 20 
 
 •xt 
 
 70 
 
 18 
 07 
 (>» 
 
 48 
 
 1.18 
 128 
 
 r»o 
 
 22 
 
 122 
 
 63 
 
 46 
 
 102 
 ")2 
 
 120 
 78 
 (12 
 20 
 
 1<»2 
 
 Ixidt'er 18, :«t 
 
 Ijedger Index 2!t, 128 
 
 I^'tters 14") 
 
 Loss and Gain Account 37, 41 
 
 Manufjicturing 1.19 
 
 M.'irking (ioods 140 
 
 Mercantile Terms 1.57 
 
 Merchandise Account 6, 21, 31 
 
 Merchandise Couipauies 102 
 
 [103] 
 
104 
 
 INDKX. 
 
 m 
 
 yik, 
 
 I'AOB 
 
 Notes 49 
 
 Orders 48 
 
 Partial Payments )41 
 
 Partnership 108 
 
 Partnership .Settlements I(t9 
 
 Personal Accounts 2, 'Jl, '.i'2 
 
 Petty (^ash Bunk 137 
 
 Petty I^edger 137 
 
 Plant Account 140 
 
 Private Ledger 137 
 
 Promissory Notos 7, 49 
 
 Proprietor's Account 11 
 
 Protesting Notes, etc 68 
 
 Real Estate Account 21 
 
 Receipts 4*} 
 
 Renewal of Notes 70 
 
 i>*ai 
 
 Retiuisites of a Note 49 
 
 Rules for Determining Debits and 
 Credits 20 
 
 Sales Book 82 
 
 Simple Average 143 
 
 Single Entry 121 
 
 Six-Column Journal Ill, 114 
 
 Shipment Companies 102 
 
 Shipments 87 
 
 Specimen Ledger Closed 3!l 
 
 Statement of Losses and Oains 35 
 
 Statement of Resources and Liabili- 
 ties , 35 
 
 Stock Account 20, 30 
 
 Sundry Debtor's Account 137 
 
 Transferring Accounts from an Old 
 
 Ledger to a New One 139 
 
 Trial Balanoe 33