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r t 
 
. I (Sagt ^ Co's <Sbiu;attonal 9mt». 
 
 0--A.ta-E'S 
 
 STANDARD BOOK-KEEPING, 
 
 BY 
 
 SINGLE AND DOUBLE ENTRY. 
 
 Designed for n>7' in he Public and High Schoolg. 
 
 FORMERLY CALLED 
 
 BEATTY ^& CLARE'S BOOK-KEEPING. 
 
 ;3ltttbon^tb bjr tl^c ^'mister of (Sbntation. 
 
 NINTH EDITION. 
 
 PRICE 70 CENTS. 
 
 W. J. GAGE & COMPANY, 
 TORONTO & WINNIPEG. 
 
 1883. 
 
^'^' t-J F.5C35 
 ■ IS5 
 
 /s?-^ 
 
 o 
 
 1) 
 
 Bnitnd meeording te the Act 9f Parliammt of t\t DomMm 9$ 
 Canada^ in the year one thousand eight hundred and sevemf» 
 uven, by Adam Millb9 & Co., in the O^^e of the Mim 
 kter of Agriculture, 
 
 h. 
 
PREFACE.' 
 
 In. 
 
 llie plan of this work being somewhat differtnt from that 
 of those on Book-ke .ping we already have, a few words im 
 iustification may be necessary. That justification finds its 
 ground mainly in the anxiety of the authors to remoYe, av 
 much as possible, the difficulties which beset the path of 
 the young scholar on his first approach to this subject Long 
 lists of definitions of terms which are of no immediate use^ 
 and a formidable array of the books required are, doubtless, 
 calculated to have a confusing effect upon his mind. Accord- 
 ingly, no definitions are given at the outset but such as are 
 absolutely necessary. As assets and liabilities are, in this 
 country, so often connected with Notes\ it is necessary he 
 should know something of the nature of a Promissory Note 
 and an Acceptance. We have, therefore, made some introduc- 
 tory remarks in reference to them. After this, he is brought 
 at once, face to face with the ultimate object of a set of 
 accounts ; and his every day knowledge and experience, and 
 his own goovi sense, are then chiefly depended on for an 
 intelligent appreciation on his part of the best mode of arriving 
 at that object. With a view to this, the nature and form 
 of an account are explained ; examples are given of the 
 separate different accounts showing assets, liabilities, losses 
 and gains ; and then a connected series of transactions origi- 
 nating a connected series of accounts, and resulting in his con- 
 structing a Double Entry Ledger before he knows even the 
 name of the book. The idea, in fact, has been to cheat him 
 into making it unawares. 
 
 / / 0'57- 
 
 i-l 
 
 I 
 
PREFACE 
 
 Teadieri hare foand that it is difficult to make a pnpfl 
 onderstand the Journal until he becomes acquainted with the 
 mature and disposition of the accounts in the Ledger. It haa 
 been sought to give him a clear understanding of the Ledger 
 itaountSf assured that, when he has attained this, every thing 
 else will be comparatively easy. The language has been 
 made as simple as possible, and far-fetched explanations of 
 rules for journalizing have been carefully avoided. Ais jloumaU 
 izing is merely expressing in technical form which accounts, 
 in any particular case, are to receive entries, and on which 
 tide, he is independent of set rules, if he understands these 
 accounts; which we presume he does if he has properly 
 studied the chapters on accounts, ending on page 50. 
 
 Sets containing a large number of entries — even although 
 not difficult — have a fbndency to discourage the pupil and 
 prejudice him against the necessary work. The earlier sets, 
 therefore, have been made short and simple, that he may more 
 easily trace the connection between- the corresponding entries 
 in the various books, and arrive at the ultimate result without 
 becoming fatigued and perplexed with the extent and difficulty 
 of his task ; while a sufficient number has been given to exer- 
 cise him thoroughly in the opening and closing of books. 
 
 As other special features, the attention of the reader maybe 
 directed to the method given in Set III., Single Entry, d 
 resting the correctness of the Ledger, and to a more complete 
 isrplanation than usual, in the last two sets of Double Entry, 
 of the management of Bills. 
 
 The teacher is earnestly recommended not to allow the 
 pupil to pass the 30th page until he clearly understands the 
 nature of the Ledger accounts. In working out the sets, the 
 pupil should make all the calculations for himself whether given 
 in the book or not, and he should draw out in proper form 
 the various notes, etc., connected with the diflferent sets. 
 l-e&iibiUty and neatness also should mark his work. 
 
PREFACE. 
 
 Believing that our adoption of the analytic method of intto- 
 ducing the subject will commend itself to our fellow-Canadian 
 teachers, wt now submit the work to them in the hope that 
 a judicious and faithful use of it may be instrumental in instill- 
 ing into the minds of our youth correct principles on the 
 subject of Book-keeping, and in preparing them for a more 
 extended study of it than the hmiis of the present work will 
 admit oL 
 
r \ 
 
—TTTTr- 
 
 PART I. 
 
 SINGLE BNTKY 
 
BOOK-KEEPING. 
 
 CHAPTER I. 
 
 INTRODUCTORY 
 
 If goods are sold by Robert Smith to John Jones, without 
 being paid for at the time, they are said to be sold on crecit. 
 There may be simply a geH&ral understanding between the par- 
 ties that the goods are to be paid for iu one month, two months, 
 &;c., as the ease may be ; or Jolin Jones may give a vniiten 
 TpTOiniu in somewhat the following form : — 
 
 S^'<UCakAf /ok iHaui* Ue»i*t€a, 
 
 A promise written in this foim is called a Promissory 
 Note, and this particular one would be called John Jones' note. 
 In the former case, it is usual to say the goods are sold on accotmt, 
 in the latter that they are sold on note. In either case a debt 
 is created on the part of John Jones. As, therefore, when w« 
 sell on credit, we may sometimes receive our debtor's note, ami 
 sometimes not, the debts owing to us are naturally divided 
 into two classes * — 
 
 I. Debts owing to us, for which we have receive. 1 th« 
 debtors' notes. 
 II. Debts owing to us, for which we have not received 
 the debtors' notes. 
 
 A«, similarly, we may buy on credit, sometimes giving 0ur 
 
 i 
 
 \ 
 
BOOK- KEEPING. 
 
 notet Bometimes not, our debts are naturally ilivided into tvro 
 classes : 
 
 f ' '^ - 
 
 I. Debts owing by us, for which we have given our 
 
 notes. . 
 
 II. Debts owing by us, ^or which we have not given our 
 
 notes. 
 
 There is another form in v nich John Jones may piomise t«.» 
 pay tlie money. Kobert Smith may write something Jikt; iIk^ 
 following : — 
 
 * 
 
 :\ n/nlee tno^nlnd a/ieA c/a/e, /i«^ ^ *>**, oi */iy 
 
 Ueewtu. 
 
 'Diis i« called a draft, and is in no way binding on John Joiks 
 uiiLJl he lia.i^xpressed his willingness to pay the amount )»y 
 wiiting across the face of it the word aae^kd^ and hisru/mc, ami 
 <lelivorcd it to Robert Smith. Thus — 
 
 / &m9^«nc»fj^'i afieA cfftte, /KtU- /<» *»tt, <M *ny. 
 
 It is now an Accepted Draft,' or more shortly an Accept- 
 ance. It is equal in effect to the Promissory Note, and differs 
 only in forni. So that when we speak of debts owing to us, 
 for which wo have received our Debtors* Notes, the pupil may, 
 if he likes, say *' notes or acceptances." 
 
 When we sell goods to a person on credit, we have several 
 advantages in getting his note. By reading the note carefully 
 the pupU will see, first, that it is an achiowledgment of thf 
 
 2 
 
 
BOOK-KEEPINO. 
 
 debt ; Mcond, that the time of payment is definitely fixed. We 
 have also this advantage, that we can sell it like any other kind 
 (»f property. We can pay it to another person for a debt we 
 nwe him, or we can get it discounted at the Bank — a process 
 >vhioh it is not at present necessary to explain. 
 
 It may be mentioned in passing, though tht< [)upil need not 
 trouble himself about it at present, tiiat thr<^e days are allowed 
 on all notes made payable at so many *• days or months after 
 date," beyond the time indicated for payment on the note. So 
 that John Jones' note would not be due until thrae days after 
 the let September. These days are called days of grace. 
 
 ■V-1 
 
 CHAPTER II. 
 
 THE OBJECT OF BOOK-KEEPINa 
 
 III solving any arithmetical problem, the first thing we do ic 
 to seek to have a clear conception of what is required to be 
 Found, and then to examine if we have sufficient information 
 ^iven to enable us to bring out the required result. 
 
 If the study of Book-keeping were taken up in the same 
 irianner, much of the difficulty usually attending it would dis- 
 appear. The thing ultimately required to be found from a 
 I fader's set of books is his financial position. And how 
 IS this ascertained 1 Most persons — even young per-sons — are 
 familiar with a statement sometimes found in newspapers that 
 
 Mr. , not being able to meet his payments, has called his 
 
 ireditors together, in order to lay before them the state of hici 
 affairs. In such a case, the two most important questions to 
 f he creditors are : " How much does the trader owe 1 " and 
 " What has he that he can apply to the payment of his debts 1 " 
 '»r, as it is generally expressed, " What are his liabilities ?" 
 and " What are his assets ? " If his books have been correctly 
 i<ept, they will furnish an answer to these questions. 
 
 A trader's assets, so far as his business is concerned, wiU 
 generally be somewhat as follows: — 
 Oai^ in hand. 
 M erehandiae in hand. 
 
 m^ 
 
 
 m 
 
 mil 
 
 m 
 
BOOK-KEEPING. 
 
 i'l 
 
 Debts owing to him for which he has recived his customers* 
 
 notes. 
 Debts owing to him for which he has not received his 
 . "stomers' notes. 
 
 His liabilities will be — 
 
 f. Debts owing by him for which he has given his notes. 
 Debts owing by him for which he has not given his notes. 
 
 In examining the nature of the different assets, it will prob- 
 ably be suggested to the mind or" the thoughtlul pupil that the 
 debts owing to the trader can hardly rank with cash in the 
 payment of his own debts, and he may possibly be reminded 
 of the old saying, " A bird in the hand is worth two in the 
 bush." This is true, and it is accordingly usual, in estimating 
 a trader's assets, not to reckon the debts owing to him at what 
 his books show them to be, but to make some deduction on ac- 
 count of the uncertainty of all of them being good, or rather 
 of the almost absolute certainty of some of them being bad. 
 To take this into, account at present, haivever, would only em- 
 barrass the learner. We will, therefore, for the sake of sim- 
 plicity, suppose them to be good. 
 
 The assets and liabilities being known, we have all the in- 
 formation necessary to determine the trader's financial standing. 
 If liis assets are greater than his liabilities, he is woith just the 
 difference ; if his assets are only equal to his liabilities, he is 
 worth nothing ; if his assets are less than his liabilities, he is tn- 
 solvent. 
 
 Suppose, in the case referred to, that the trader's financial 
 position has beeti ascertained from a comparison of his assets 
 ■with his liabilities, another very natural enquiry on the part of 
 the creditors presents itself — " How has this unfortunate state 
 of things been brought about ? " If his books have been 
 properly kept they will answer this question also. They will 
 show how he stood at some former period — say twelve months 
 ago — what profits he has made from sales since, what losses he 
 may have sustained, and what expenses he may have incurred 
 for the carrying on of his business since. , ,* 
 
 It is clear that, if hiii profits from sales have been greater 
 than all his expenses of various kinds, there has been a net 
 gain, and his former capital has been increased by so much. If 
 his profits have been only equal to his expenses, he is just where 
 he was ; while, if his profits have been less than his expenses, 
 there has been on the whole a loss, and his former capital has 
 been Usaened by so much ; and if his TUit cons has been greater 
 
 4 
 
BOOK-KEEPINO. 
 
 than the amount of his former capital, that capital has entirely 
 disappeared, and he is worth — less than nothing. * 
 
 A trader's books, therefore, should furnish two kinds of 
 Information. One of these, the present assets and liabilities, 
 will show his present financial position without any reference 
 to A former period. The other, by taking into consideration his 
 position at a former period, and his gains and losses since, will 
 show how from that former position he has arrived at his pre- 
 sent one. And, further, as the result must in each case be the 
 same, agreement in remit may be considered some proof of its 
 correctness. 
 
 In order to illustrate the preceding observations, wo will 
 suppose the following to be given as a question in simple 
 A.rithmetic. 
 
 A trader's books contain statements showing that he began 
 business January 1st, 1876, with $1,800; that he has to-day 
 (June 30th, 1876), cash in hand, $500 ; merchandise in hand, 
 i51,000 ; that there is owing to him $400, for which he holds 
 notes, and $300 for which he does not hold notes ; that he 
 owes $350 for which he has given his notes, and $200 for 
 which he has not given his notes. His profits from sales have 
 been $480, and he has expended for rent $80, and for sundry 
 f'ther things — as cartage, stationery, clerk-hire, &c. — $50. Re* 
 ((uired his present net worth. 
 
 The intelligent pupil will perceive that there are, in this, 
 riuestion, two distinct classes of data, from either of which 
 alone he can determine the present net worth, and as the ques- 
 tion stands he is at liberty to take his choice. Let him, hoW"^ 
 ever, take first the present assets ^d liabilities. 
 
 ASSETS. 
 
 Oash in hand $500 
 
 Mdseinliand 1000 
 
 ! >ebto owin^ to him for which 
 he holds his customers' 
 
 notes 
 
 Debts owing to him for which 
 he does not hold notes. . . . 
 
 400 
 
 300 
 
 TotiJ assets. 
 
 $2200 
 
 LIABTLITTI9. 
 
 Debts owing by him for which 
 
 he has given his notes .... 9350 
 
 Dobts owing by him for which 
 
 he has not given his notes 200 
 
 TotalUabiUtiM $560 
 
 Total assets $2200 
 
 liabiUties 560 
 
 » 
 
 Present net worth. 
 
 $1650 
 
 Taking now the original capital and the subsequent gains 
 and losses, we have — 
 
 
 m 
 
 m 
 
 -n 
 
mmmm 
 
 BOOK-KEEPING. 
 
 Profit from ialee $480 
 
 Ex{)eude(l for rent $80 
 
 Sundry othe^^ expeuses 00 
 
 Net gain 360 
 
 Origiual capital 130C 
 
 Present net capital $lGdO 
 
 From the foregoing, tht) pupil will see that a trader's booki 
 Bhould contain statements, in some shape Oi' other, showing : 
 
 Cash in hand. 
 Mdse in hand. 
 Debts owing to him, 
 
 on others' notes. 
 Debts owing to him^ 
 I, -{ * I ^^^ ^^ notes. 
 
 Debts owing by him, 
 
 on his own notes. 
 Debts owing by him, 
 
 not on notes. 
 
 His Present Assets 
 
 His Present Liabilities. 
 
 i 
 
 II. 
 
 f His Capital at some former period. 
 "^ His Gains and Losses since. 
 
 From each of these the present financial position is de- 
 termined : from the first, by a simple view of the business as it 
 now stands, without any reference to a former period ; from the 
 second, by taking note of the position at a former period, and 
 of the gains and losses since, without knowing anything of the 
 cash we have in hand, or the debts owing to or by us now. 
 
 The pupil will do well at the very outset to have a clear 
 comprehension of the goal he is aiming at in keeping a set of 
 accounts. If he does this, and maintains that goal constantly 
 and steadily in view, he will have little difficulty in deviling 
 the means himself of attaining to it, or else in intelligently ap- 
 preciating those proposed by others, r *. 
 
 ' / 
 
fiOOK-KEEPINClb 
 
 CHAPTER m. 
 
 THE NATURE AND POKM OP AN ACCOUNT. 
 
 We have said in the preceding chapter that a trader's books 
 should contain statements, in some shape or other, showing 
 what is owing to him, what he owes, how much cash there 
 ought to be in hand, the merchandise still unsold, and the 
 various gains and losses. • 
 
 We have now to consider the nature and form of these state- 
 ments, taking as an example the one showing how much cosh 
 there should be in hand. Evidently, if we have the cash re- 
 ceived and paid at various times given, we have sufficient data 
 for our purpose. 
 
 Suppose that on the 1st of June we had $'20 in hand, on the 
 2nd received $50, on the 3rd paid |30, on the 5th paid $10, on 
 the 6th received |80, and on the 7th paid $15. Bequired the 
 cash in hand. 
 
 If this question were given to a class without any instruc- 
 tions as to how they were to arrange the items, we should pre 
 bably find three or four different methods pxlopted. 
 
 FIRST MJi^THOD. 
 
 Q^tt /utnm 
 
 ['t'. Qy*t nan J 
 
 ^n nana 
 
 9 Sn^te^iuea coin 
 
 T 
 
 so 
 
 SO 
 
 so 
 io 
 
 r-i 
 
 440 
 
 m 
 
mmmB 
 
 BOOK-KEKI'INO. 
 
 SECiJND METHOD. 
 ^tns / ^trd/i lit Aartf/ m ' ' m 
 
 3 vij t*i(/ ea>i/t m m 
 
 S 9/ a if/ rn Ah *■ • 
 
 ;U^xia ett6n » • 
 
 i$SO 
 
 
 so 
 
 
 m 
 
 30 
 
 m 
 
 40 
 
 ^0 
 
 
 ' 
 
 4S 
 
 ^so 
 
 SS 
 
 ss 
 
 
 
 THIRD MSTHOP 
 
 
 W€t6n. 
 
 T' '■;'•: 
 
 4Sp. 
 
 
 »0 
 
 SO 
 ' ^0 
 
 00 
 00 
 00 
 
 00 
 00 
 
 ^^^t/ne 3 
 S 
 
 7 
 
 
 30 
 /O 
 /S 
 
 00 
 0%^ 
 
 . * 
 
 /so 
 ss 
 
 SS 
 
 09 
 
 : 7 
 
 fS 
 
 00 
 
 
 
 
 
 AH these plans come to the same thing, and each has its 
 peculiar advantage. We will not at present specify these ad- 
 vantages, but will adopt, with a slight modification, the third 
 method in our further explanations of the different account*. 
 We will put Dr., the contraction for debtor or debit, on the 
 left hand comer at the top, and Cr,, the contraction for credi-< 
 
 8 
 
BOOK-KBEPIKQ. 
 
 tor or credit, on the rii^ht hand corner. Also, instead of 
 subtracting the smaller side from t!io greater, we will add 
 sufficient lo the smaller to make it equal to the greater. 
 
 i. 
 
 Wa'M, 
 
 %. 
 
 /S^i). 
 
 
 
 
 MyS. 
 
 
 
 
 ^' / 
 
 oJn Attn ft 
 
 20 
 
 00 
 
 ^^3 
 
 ■^fiuia 
 
 SO 
 
 00 
 
 S oJleceiuM 
 
 JO 
 
 00 
 
 J 
 
 "sJout 
 
 40 
 
 00 
 
 i> 
 
 y 
 
 ^0 
 
 00 
 
 7 
 
 ^u^ 
 
 /J 
 
 00 
 
 
 J5 
 
 00 
 
 
 X • 
 
 
 00 
 
 
 <^n nana 
 
 ^5 
 
 00 
 
 
 
 ^50 
 
 
 4S0 
 
 00 
 
 
 
 
 1 
 
 
 
 
 Any of the foregoing arrangements of the items is called an 
 Account. When we divide the account into two sides, as in 
 the third method, the left hand side is called the debtor oi 
 debit side, and the right hand side is called the creditor 
 or credit side. When we make an entry on the left hand 
 side we are said to debit the account^ and when we make an 
 entry on the right hand side wo are said to credit the account.- 
 
 ■ This arrangement of the items of an account is the one 
 usually adopted, except as regards the explanatory words in 
 the wide column, which for our present purpose is of no 
 moment. The essential part of this arrangement is the col- 
 lecting on one side all the cash received, and on the other all 
 the cash paid. 
 
 In reference to this arrangement, the enquiring pupil who is 
 anxious to know the reason of everything he does, may very 
 naturally ask if it would not be just as proper to put the cash 
 received on the right hand side and the cash paid on the If.ft. 
 We answer, yes ; so far as the ultimate object of the account 
 is concerned, there is no reason why one plan should be adopted 
 in preference to the other, except that it is the custom, and 
 therefore we must follow it. 
 
 In like manner, if we make a statement of the value any 
 peNon has received from us or delivered to us at various times, 
 \vu can ascertain how he stmid^ i-flated to us as Dr. or Or. 
 
 
^BH 
 
 fiOOK-KEEPINQ. 
 
 .!• 
 
 Suppose John Jones buys goods from us June Ist, 1876, 
 amounting to $120 ;, 2n(i, Pays us $30 ; 3i-d, Buys goods f; oio 
 us, $200 ; 6th, Sells goods to u.s, $150 ; 6th, Pay? us casli, $J0. 
 Does John Jones owe us, or we him, and how uiajh ? 
 
 Arranging according to the tliiid molhud, wo huvti— 
 
 11 
 
 ill 
 
 ^ 
 
 ^ ^ ^ 
 
 ^ ^ ^ 
 
 ^ ^ 
 
 ^ ^ 
 
 ^ 
 ^ 
 
 
 ^ 5» s* 
 5 ^ 
 
 
 
 • , 
 
 
 ^ 
 K 
 
 ®) "^ ^ 
 
 ^^ 
 
 
 
 ^ llH 
 
 I 
 
 1 
 
 ill '^ 
 
 
 ^ 
 
 ^ 
 
 M 
 
BOOK-KEEPINa. 
 
 The use of the words Debtor and Creditor in eonneetion with 
 the name of a thing, as cash, will no doubt present some diffi- 
 culty to the pupil's mind. He can easily understand John 
 Jones being Debtor, but he cannot see the propriety of Cash 
 being Debtor. Strictly speaking, these terms in their original 
 import refer only to persons. In business, a person receiving 
 value without giving at the same time an equivalent becomes a 
 debtor, the giver of the value being the creditor. The terms 
 receiver and giver, debtor and creditor, are correlative terms ; 
 t. e.y they are so related that one cannot exist without the 
 other. There cannot be a receiver without there being a giver, 
 nor a debtor without there being a creditor. The application 
 of the terms Dr. and Ci. to things is called by one writer *' a 
 beautiful fiction/' and various reasons have been given to jus- 
 tify the application. But the beginner will do well not to 
 trouble himself unduly about this matter. He may at present, 
 if he likes, consider them as merely giving names to the two 
 iiides of an account. He will, however, observe that as an entry 
 on the Dr. side of Cash Account indicates that we have re- 
 ceived Cash, so an entry on the Dr. side of any other account 
 in the name of a thing will indicate that we have received the 
 particular kind of thing represented by the name of the account. 
 Thus an entry on the Dr. side of Bills Receivable Acct. will 
 indicate that we have received another's note. And as an entry 
 o)(i the Cr. side of Cash Account indicates thatK7« havt parted 
 with Cash, so an entry on the Cr. side of any account in the 
 name of a thin^ will indicate that we have parted with the par- 
 ticular kind of thing represented by the name of the account. 
 I'hus an entry on the Cr. side of Bills Receivable Account will 
 indicate that we ha/9t parted with another person's note. 
 
 The pupil will now readily see that 
 
 Cash in. hand may be shown by arranging the Cash received and 
 paid under the head of Cash. 
 
 Others' Notes in hand («. «., what is owing to us for which we 
 hold Others* Nbtes)j by arranging all such notes received 
 and those of them which we afterwards dispose of, under 
 the head of Bills Receivable. 
 
 Others' Notes out aqainst us (t. «., what we owe for which others 
 hold Our Notes)y by arranging all such notes issued and 
 those of them which we afterwards redeem, under the 
 head of Bills Payable. 
 
 a 
 
 
 'i^f 
 
 ^ r, 
 
 ji 
 
BOOK-KEJaUNO. 
 
 fyjuU is owing to its or by us tor which no iiotes have been received 
 or given by us, by arranging the value the person re- 
 ceives from us, and delivers to us, under his name, as 
 
 John Jones. 
 
 Tlie Gain or Loss on. the Sale of Goods, by arranging what they 
 cost aud what they are sold for, under the head of 
 
 Merchandise. 
 
 Thu Expemet of the Biminess, by arrangitig tlie various outlays 
 for rent, fuel, gas, taxes, stationery, &c., under the head 
 of Expense. 
 
 ■ ■ t 
 
 ♦ . 
 
 1/ 
 
 ,, .r/' ■- • >* ■ 
 
 Ck AFTER IV. 
 
 EXAMPLES OF ACCOUNTS. 
 
 - Tbb student is reminded that when we receive anything, 
 aii Gash, Others' Notes, Our Notes, Mdse, «tec., an entry must 
 be made on the Dr. side of the acconnt re]>rt'sonting the par- 
 ticular kind of thing received, ami when we part with any of 
 these things, an entry must be made on the Cr. side. 
 
 When a person receives value from us without giving us 
 an equivalent, we must debit his account ; when he delivers 
 value to us without receiving an equivalent from us, we must 
 credit his account. 
 
 If Robert Smith buys goods from us, it does not matter, so 
 fai' as the statement of the fact is concerned, whether we say 
 " Robert Smith has bought goods from us," or " We have sold 
 goods to Robert Smith." In the first expression our attention 
 is more particularly directed to Robert Smith's part in the trans- 
 action-^what he has done ; in the second, to our part in the 
 transaction — what we have done. And it will very much 
 conduce to a clear understanding of the application of the terms 
 Dr. and Or. to accounts representing things, if, when we are 
 dealing with one of these accounts, we consider mainly our 
 part in the transaction, as receiving or giving ; and when we 
 are dealing with a personal account, as Robert Smith, we consi- 
 der mainly his part in the transaction, as receiving or giving. 
 
 IT' 
 
DOOK-KEEPmO. ^ 
 
 ITEMS FOR A CASH ACCOUNT. 
 
 'June let, 187G, Cash in hand $500. 2nd, Bonght Mdsefor 
 cash, $300. 3rd, Received cash from Abel Adamn on acct., 
 $80. Otb, Sold Mdse for cash, $120. 6th, Paid for sundry 
 expenses, $50. 7th, Received cash from Benjamin Bond, in 
 payment of his note, $100. 8th, Paid cash to James Heaton 
 for our note, $130. 9th, Borrowed from Charles Coleman, 
 $150. lOth, Paid Daniel Dunn on acct., $400. 
 Required amounc of Cash on hand. 
 
 EXPLANATION. 
 
 Dr. 
 
 Cash in hand. 
 All Cash afterward 
 received. 
 
 Cash. 
 
 \ AH Cash paid. 
 
 The difference between the two lides will show Cash in 
 hand. 
 
 i. 
 
 wct&n. 
 
 %. 
 
 4^J6. 
 
 
 
 
 ^SJ6. 
 
 
 
 
 /u**^ / 
 
 9^** nana 
 
 SOO 
 
 00 
 
 ^tn* 2 
 
 SPaut 
 
 300 
 
 00 
 
 3 
 
 vUceiwd 
 
 ^0 
 
 00 
 
 ^ 
 
 muJ 
 
 50 
 
 00 
 
 6 
 
 &£eeivea 
 
 ^90 
 
 00 
 
 S 
 
 SPaiti 
 
 430 
 
 00 
 
 7 
 
 wUee«vea 
 
 ^00 
 
 00 
 
 40 
 
 SPaiJ 
 
 Ji-oo 
 
 00 
 
 f 
 
 • 
 
 £H^^giLUt£l 
 
 ^£iO 
 
 00 
 
 
 
 
 
 
 \;' ■ 
 
 
 
 
 440 
 
 00 
 
 
 
 
 
 ^^0 
 
 • 
 
 jDa4A*nAana 
 
 JO 
 
 00 
 
 1 ',.,;?';■ 'll 
 
 fSO 
 
 00 
 
 fSO 
 
 00 
 
 
 
 
 
 ITBBia FOR AN ACCOUNT OF OTHERS' NOTES. 
 
 1876, June 1, We have on hand Frank Ford's note for 
 $360. 2, Received George Gunn's note for goods sold him', 
 $280. 3, Got F. Ford's note discounted, $350. 5, Received 
 
 13 
 
 It, 
 
 ILL' If 
 
 m 
 
BOOK-KEEriNO. 
 
 Renry Hunt's note at one month for balance of his acct., $130. 
 8, Sold goods to Isaac Inman on his note $120. July 8, 
 Henry Hunt has paid his note of Juno 5, ;$130. 
 Required how much is owing to us on Others' NoteSt 
 
 Dr. 
 
 Others' Notes in hand. 
 " •' after- 
 
 ward received. 
 
 Cr. 
 
 PLAN. 
 
 Bills j 
 Receivable. ) Otheis' Notes dis- 
 ( posed uL 
 
 The difference shows Others' Notes in hand. 
 
 m. 
 
 5 
 
 6 
 
 ffn nana 
 
 330 00 
 2^0 00 
 
 430 
 420 
 
 SSO 
 
 00 
 00 
 
 00 
 
 ^U'ttt 3 
 
 «f 
 
 
 
 350 
 430 
 
 J^O 
 400 
 
 00 
 00 
 
 ^^0 
 
 00 
 00 
 00 
 
 ITim FOR AN ACCOUNT OF OUR OWN NOTES. 
 
 June 1, 1876, Note outstanding, favor of John Jones, 
 $200. 2, Gave our note to John Lord for goods bought, $350. 
 3, Accepted Charles Coleman's draft on us at two months, for 
 balance of account, $190. 6, . Paid Cash to John Jones for our 
 note, $200. 6, Bought goods on our note from Mark Main, 
 $270. Aug. 6, Paid our acceptance, favor of C. Coleman, 
 $190. Required amount of Our Notes outstanding. 
 
 PLAN. 
 
 Dr. \ /Or. 
 
 f Bills J OurNotes outstanding 
 Our Notes redeemed, f Payable. \ Our Notes afterward 
 
 ) \ issued. 
 
 The difference shows Our Notes outstanding. 
 
 U 
 
BOOK-KRRPINO. 
 
 f. 
 
 i/u (£rauno^. 
 
 «^i. 
 
 
 une 
 
 ^jAm. ^ 
 
 
 wut^futiitiitg 
 
 i. . 
 
 200 
 
 HjO 
 
 ,?fO 
 ^J^O 
 
 ^0^0 
 
 00 
 00 
 
 00 
 00 
 
 00 
 
 3 
 i 
 
 QJMu4a 
 
 too 
 
 330 
 ^fO 
 
 tJO 
 
 /0/e 
 
 00 
 00 
 
 00 
 00 
 
 00 
 
 ITEMS F(Jll A PERSONAL ACCOUNT. 
 
 1876, June 1. Nathan Newton owes us $150. 2, Sold him 
 goods un account,' $200. 3, Received cash from him on account, 
 $100. 5, Sold him L;ood8, $320. 6, Bought goods from him, 
 $2G0. 
 
 Is N. Newton our Dr. or Cr., and for how muoht 
 
 Or. 
 
 PLAN. 
 
 Dr. ) 
 
 The value N. Newton V N. Newton. I The value N. Newton 
 receives from us. j ( delivers to us. 
 
 The difference shows how much he owes us, or we owe him, 
 
 n<* the case may be. 
 
 ■■{ 
 
 L 
 
 oA^cdnci/n oAUw^on^ 
 
 % 
 
 ^s/S. 
 
 
 
 
 /^^s. ' 
 
 
 
 
 /(in* / 
 
 9fn<UUt€l U 
 
 
 
 ^^m4 3 
 
 ^4U<Uf^</ 
 
 
 
 
 fU 
 
 ^SO 
 
 00 
 
 
 tU U€tiUU 
 
 /oo 
 
 00 
 
 
 ^ad k^etivta \ 
 
 
 
 S 
 
 <^€i4 deUu'ei 
 
 
 
 1 tMuUe/iomud 
 
 too 
 
 00 
 
 
 ttd value 
 
 260 
 
 00 
 
 J 
 
 '^ ^rtA 4 4V*^# 4i^^ 
 
 
 
 
 
 
 
 
 '•€t*tie/iomud 
 
 320 
 
 00 
 
 
 
 360 
 
 oe 
 
 . ':*^i 
 
 V 
 
 
 00 
 
 6 
 
 (sJie fH4tt4 fui 
 
 1 3^0 
 
 i 
 
 00 
 
 
 Syo 
 
 i>JO 
 
 00 
 
 
 ' 
 
 ,- 1 II 
 
 
 
 
 5r^ 
 
 I'il 
 
 m 
 
 
I 
 
 ,} 
 
 
 BOOK-KEEPIKO. 
 SECOND EXAMPLE. 
 
 1876, June 1. We owe Oliver Owen, $500 ; 2, Bought 
 goods from )iim, $2G0; 3, Paid him cash, $300 ; 5, Borrowed 
 from him, $150; 6, Paid him cash, $270. 
 
 Ls Oliver Owen our Dr. or Or., and for how much 1 
 
 ^A'\^'■;f^' 
 
 s 
 
 i. 
 
 Mt^el ^i 
 
 uj^n. 
 
 U. 
 
 
 f^jfad ieeeivea 
 iHtuu/iontifd 
 
 soo 
 
 2J0 
 
 00 
 
 00 
 
 2 
 
 . _ 
 
 5J0 
 3j^ 
 
 00 
 00 
 
 
 00 
 
 1 
 
 ^Htlt^isJ ie 
 
 ud tuUae 
 Mat ixautt 
 
 300 
 2i)0 
 
 00 
 00 
 
 /JO 00 
 
 f/0 
 
 00 
 
 ITEMS yOR AN ACCOUNT OF THE GOODS WE DEAL IN. 
 
 1876, June 1. Value of goods on hand, $1500 ; 2, Bought 
 Flour for cash, $380 ; 3, Sold Flour to Samuel Smith on ac 
 count, $690 ; 5, Bought hutter from Kobert Kidgway on our 
 note, $070 ; 6, Sold butter to Thomas Turner on his note 
 $480 ; 7, Sold remainder of goods by auctior*, $1600. 
 
 liequired the gain or loss. 
 
 PLAN. 
 
 Dr. 
 
 Cr. 
 
 Cost of goods on hand. \ ]i/rpp«y»«*»_ ( What they sold for. 
 Cost of goods bought V Hic« " \ ^^^^ of goods on hand 
 
 8mce. 
 
 I dise. ) ..» p 
 J ( (if any). 
 
 The difference will show gain or loss^ aa the case mav ha 
 
 16 
 
BOOK-REKPrNO. 
 
 m. 
 
 00 
 00 
 
 m 
 
 L 
 
 QyUeicnaynuu 
 
 i^e. 
 
 %. 
 
 
 oMotMfM 
 
 /soe 
 
 3^0 
 
 6jo 
 
 00 
 00 
 00 
 
 ,^ine 3 
 
 t 
 7 
 
 
 ifO 
 Ji-^o 
 ^6oo 
 
 00 
 00 
 00 
 
 ' ■ 
 
 2550 
 220 
 
 00 
 00 
 
 
 ' :: , 
 
 2J'/0 
 
 00 
 
 2J'/0 
 
 06 
 
 
 
 
 
 
 
 SECOND EXAMPLE. 
 
 1876, June 8. Goods on hand, $800 ; 9, Sold goods for 
 cash, $300 ; 10. Sold goods to James Sraithon his no*"^, $200 ; 
 12, Bought goods from Charles Adin, $1200; 13, Sold goods 
 to John Brown on account, $400 ; 14, Goods remaining worth 
 $1000. 
 
 Required the gain or loss. 
 
 ^. -r^ 
 
 ^MeienoMuUe, 
 
 U. 
 
 '/^'/6. 
 
 
 
 
 /^/^7 
 
 
 
 -__ 
 
 jM/tl* S 
 
 (O'H. na*tn 
 
 ^00 
 
 00 
 
 /u^€^ 
 
 ^^ 
 
 300 
 
 00 
 
 ^2 
 
 @£o€Mf^/ 
 
 /200 
 
 00 
 
 ^0 
 
 ^^ 
 
 200 
 
 CO 
 
 
 -■ 
 
 
 
 /3 
 
 9%^ 
 
 J/-00 
 
 00 
 
 
 ■'■., ^ ■ ■ : ' 
 
 
 
 M 
 
 t/n. nema 
 
 ■/OOO 
 
 00 
 
 - . '■' " 
 
 /fOO^ 00 
 
 
 .:- :,-. ., . , . 
 
 
 00 
 
 ! 
 
 S^ 
 
 /OO 00 
 
 
 ^000 
 
 2000 
 
 00 
 
 
 " 
 
 
 
 
 
 
 \1 
 
 li i 
 
a 
 
 Book keeping. 
 
 !i' 
 
 it 
 I 
 
 1 1 
 
 lit 
 
 rrEMS Fv)B AN AOOOUNT OF INOIDfiNlAL i*:XPBICSEa. 
 
 1876, June 1. Bought stationery, $16 ; 30, Paid Clerk'a 
 ■alary, $40 ; Paid rent, $30 ; Paid gas bill, $6 ; Paid taxes, $4. 
 
 Dr. 
 
 Cost 
 
 I 
 
 PLAN. 
 
 Expense 
 
 I Cr. 
 
 J Returns, if any. 
 
 30 
 
 t< 
 
 « 
 
 <t 
 
 
 
 1 
 
 /J 
 
 f 
 
 00 
 
 ^0 
 
 00 
 
 30 
 
 00 
 
 6 
 
 00 
 
 ^ 
 
 00 
 
 fj 
 
 00 
 
 1 
 
 
 Having laid down the general princii)le that an entry on tht 
 Dr. side of an account in the name of a thing as merchandise, 
 indicates that we have received the particular kind of thing 
 represented by the nan|B of the account, the pupil may be led to 
 think the principle at fault in the case of Expense Acct. It 
 is, however, true, that every entry on the Dr. side of this ac- 
 count indicates something received by us. In the case of 
 stationery and gas there can be no question. We received the 
 Clerk's services for the salary paid. We received use or 
 occupation of premises for the rent paid. We received cer- 
 tain civic privileges for the taxes paid. And if we clioose 
 to represent all such things received by the word Expense, then 
 the principle holds good in this case, viz., that an entry on the 
 Dr. side'of Expense Acct. indicates something received 
 necessary for the couduoting of the business. 
 
 ii: 
 
 i i i 
 
( 
 
 ^ BOOK-KEBVIVab 
 
 CHAPTER V. 
 
 EltAMPLE OF CONNECTED ACCOUNTS. 
 
 r^. 
 
 The pupil ean hardly fail to fee how much the practice of 
 Book-keeping depends upon a knowledge of the nature and 
 objects of accounts. Book-keeping may, indeed, be called 
 Account-keeping, and the book-keeper himself an aocmntant. 
 
 In the examples of the various accounts in the preceding 
 chapter, there was no mutual dependence of one account upon 
 another. We purpose now to give a series of connected trans- 
 actions, which will, of course, give a series of connected 
 accounts, from which, when completed, may be derived cer- 
 tain definite results, showing the Assets and Liabilities, the 
 Gains and Losses, of the business ; and through them, its 
 financial position. 
 
 MEMORANDA OP TRANSACTIONa 
 
 1876. 
 
 June 1. Invested in the business $ 15 00 
 
 2. Bought goods from Abel Bond 800 00 
 
 3. Bought stationery for use, from Ohas. Dunn 10 00 
 
 5. Sold goods to George Hunt 200 00 
 
 6. Sold goods to Edward Forbes 100 00 
 
 7. Received cash from George Hunt, on account 150 00 
 
 8. Paid cash to Abel Bond, on account 140 00 
 
 9. Received cash from Edw'd Forbes, on account 80 00 
 10. Sold goods to Edward Forbes 400 00 
 
 12. Gave my note to Abel Bond, on account ... 300 00 
 
 13. Sold goods to George Hunt 260 00 
 
 14. Received from Edw'd Forbes his note on acct. 250 00 
 
 15. Bought goods from Abel Bond 1000 00 
 
 16. Sold goods to Edward Forbes 600 00 
 
 17. Received cash from Edward Forbes, on acct. 100 00 
 
 19. Received from George Hunt his note on acct. 200 00 
 
 20. Received cash from Edward Forbes, on acct. 500 00 
 
 21. Gave my note to Abel Bond, on account* ... 500 00 
 
 22. Paid cash to Abel Bond, on account 600 00 
 
 23. Due to Mark Newton, for rent 40 00 
 
 Value of mdse unsold, as found by taking 
 
 stock, June 24th, 1876, $650. ~ 
 
 Required the net worth on the 24th of June. 
 
 n 
 
 >' I 
 
 m. 
 
 W.i 
 
 I. i:- 
 ■ i. ' ■ 
 
 i ■ '■ 
 
 !.:* 
 
BOOK-KEFPINO. 
 
 < 1 
 
 The instructiAnR already given with each account as to the 
 kinds of entries made,, are here arranged in a tabular form, 
 wliich will be found very convenient, both for study and 
 reference. 
 
 Dr. Entries. 
 
 ''tVithdrawals. 
 
 Received. 
 
 Others* notes 
 received. 
 
 Our notes re- 
 deemed. 
 
 Value he has re- 
 ceived from us. 
 
 Cost. 
 Cost 
 
 Accounts. 
 
 Capital. 
 
 Cash. 
 
 BillsReceiv- 
 able. 
 
 Bills Pay- 
 able. 
 
 Abel Bond. 
 
 Merchan- 
 dise. 
 Expense. 
 
 Cr. Entries. DifTerences. 
 
 Investments. 
 
 Paid. 
 
 Others' notes 
 disposed of. 
 
 Our notes is- 
 sued. 
 
 Value he has 
 deliv'd to us. 
 
 lieturnt. 
 Returns. 
 
 Cnshlnhand 
 Others'notes 
 
 in hand. 
 Our notes 
 outstanding. 
 
 What he 
 owes us, 
 
 Or, We owe 
 
 Gain or Loss. 
 Loss, 
 
 The pupil M'ill observe one account, in the Table which we 
 have not mentioned before, namely, Capital Account. It is 
 more frequently called Stock, and sometimes, by the Pro- 
 prietor's Name. In this exercise the pupil is dir'cted to 
 call it by his own name, considering himself as the proprietor. 
 He will treat it like that of any outside party, crediting it 
 when he puts anything into the business, and debiting it when 
 he gets anything out of the business. 
 
 He will make out the necessary accounts on a sheet of paper, 
 and compare his worljc with that in the book afterwards. There 
 are two wa^is in which he can do the work, and we would 
 advise him to do it in both. He can take one account — say 
 Cash — and, picking out all the cash received and paid, finish 
 it. Take another, and finish it in the same way. Or, he can 
 write the headings for all the accounts, and then taking the 
 first entry in the Memoranda, enter $15 on the Dr. side of 
 
 «0 
 
BOOK-KEEPING. 
 
 (Jaah, and the same amount on the Cr. side of the account 
 beaiing his own name. Then take the second, and enter $800 
 on the Dr. side of Merchandise, and the same amount on the 
 Or. side of Abel Bund. And so on, to the end. Each way has 
 its advantages; but for the sake of certain lessons to be learned 
 horn the latter mode, we would urge the pupil to let this 
 method have his particular attention. 
 
 One more direction, and he may set to work. In making 
 entries in the accounts representing thingS| write the name cj 
 tJu person from whom reoeiv«d, oi^ to whom delivered ; and ia 
 nudang entries in accounts of persons, write the ruime of ik4 
 tkmg they have received from you or delivered to yoiL 
 
 » 
 
 we 
 
 , i 
 
 ■■•■;>.) 
 
 
BOOK-KEEPINO. 
 
 3i. (1) 
 
 wa4h. 
 
 % 
 
 
 ttnnte 
 
 7 
 
 f 
 
 ^7 
 
 MO 
 
 Stun' ft avowed 
 Sf/ta'€/(£^oi^e6 
 
 /J 
 
 ^0 
 
 4or 
 
 500 
 
 M5 
 
 00 
 00 
 00 
 
 CO 
 CO 
 
 00 
 
 
 2^ 
 
 >7'n na4Ui 
 
 4j^0 
 (>00 
 
 406 
 
 Sj^ 
 
 00 
 00 
 
 00 
 OP 
 
 00 
 
 k. (V 
 
 U6^ ^/lecemaA^i, 
 
 % 
 
 
 t 
 
 
 25(1 
 
 200 
 
 Jh50 
 
 00 
 00 
 
 eo 
 
 ^^€n€2j9^ 
 
 —11 
 
 @/W Aa*ui 
 
 Ji^50 
 
 J^50 
 
 0(f 
 
 00 . 
 
 m 
 
 'i. (S) ^.M&^a^aiA ' %, 
 
 fUn€2j^ 
 
 •I 
 
 Wuldla'ttdini^ iSi^O 
 
 00 
 
 44j6. 
 
 24 
 
 
 300 
 500 
 
 ^00 
 
 00 
 00 
 
 00 
 
k. U) 
 
 BOOK-KEEPING. 
 
 \ 
 
 QMeicno/riaUe, 
 
 %. 
 
 45 
 
 
 ^00 
 4000 
 
 00 
 00 
 
 00 
 00 
 
 4^p. 
 ^tne if 
 
 40 
 43 
 
 4i) 
 
 24 
 
 u<un 
 
 4^00 
 440 
 
 f * 
 
 2240 
 
 00 
 
 
 
 Coatu'i/j/'olaed 
 y.colae eXunl 
 
 (^ootuundout 
 
 200 
 
 400 
 
 400 
 
 2i>0 
 
 ()00 
 
 00 
 
 4560 
 65o\oo 
 
 00 
 00 
 00 
 00 
 00 
 
 2240 
 
 00 
 
 7 00 1 
 
 9 00 • 1 
 
 3i. 
 
 (5) 
 
 wx/tetide. 
 
 
 %. 
 
 
 
 Wiad. Bunn, 
 
 • 
 
 
 
 J21*. 
 
 50 
 
 00 
 
 
 -L 1 
 
 23 
 
 
 40 
 
 00 
 
 
 / 
 
 
 
 
 1 
 
 
 i' - 
 
 40 
 
 00 
 
 • 
 
 /' 
 
 
 
 
 %. 1 
 
 50 
 
 00 
 
 50 
 
 00 
 
 Hi 
 fill 
 
 fiPi 
 
 H 
 
 
 1 
 
 
 \ 
 
 
 
 1 
 
 
 Wv 
 
 1 
 
 
 
 
 
 W-' 
 
 00 
 
 V ■ - - ■-.'■■ 
 
 « 
 
 
 
 m 
 
 00 
 
 N ■ • ' ' 1 
 
 "!r, 
 
 ^ 
 
 . 
 
 irij 
 
 '0 00 
 
 . - ■--■--.-' 
 
 
 
 
 
 
 ■ 
 
 •" 
 
 
 % 
 
 s 
 
 
 
 
 
BOOK-KEEPING. 
 
 i 1 1 
 
 1 ' 
 
 /. CO 
 
 (pupil's namk). 
 
 A 
 
 Ii(/ne / woaA 
 
 /J 
 
 00 
 
 i. (') 
 
 (^Umonc/. 
 
 %. 
 
 'ill: 
 
 m 
 
 ^ ^f 
 
 /ittie o 
 
 2/ 
 
 ?^ 
 
 ^^ 
 
 6u<iH 
 
 It vi^* Ai'tn 
 
 i 
 
 /AO 
 .100 
 JOO 
 ^00 
 
 1 
 
 00 
 00\ 
 00 
 
 00 
 00 
 
 /iit»e 2 
 
 1 - ' '; ; 
 
 Mo 
 
 /^oo 
 
 00 
 
 ■ 
 
 qJ/</m 
 
 ^00 
 4000 
 
 4^00 
 
 00 
 00 
 
 00 
 
 iiilM 
 
 \ 111' 
 jiii'' 
 
 I 
 
 :r 
 
 B'L (S) , Wad4 Bi 
 
 ^int 2 A 
 
 7^. 
 
 unm-. 
 
 e outf. *iun 
 
 /ili, 
 
 iO 
 
 00 
 
 
 
 m. 
 
 40 
 
 00 
 
 ;H 
 
BOOK-KEEPING. 
 
 Bl (^) SfJuiaid (^^odu. 
 
 i. 
 
 Jim* i o.W<L 1 
 40 f v^^/w 
 
 fOO 00 
 
 y/Oo\oo 
 
 
 
 ^0 
 230 
 
 00 
 
 00 
 
 4f.Q./A/^ie 
 
 6^00 
 
 00 
 
 /r 
 
 '^aJ.. 
 
 400 
 
 00 
 
 
 . \ 
 
 
 
 20 
 
 %<td/t 
 
 500 
 
 00 
 
 
 / 
 
 
 
 2J^ 
 
 Q^tf mv«4 n4 
 
 f30 
 
 4^0 
 
 00 
 00 
 
 
 ^400 
 
 00 
 
 4400 
 
 00 
 
 
 
 1 
 
 
 
 
 M. (10) 7J,f.o>^e o^drni. 
 
 % 
 
 4,^p. 
 43 
 
 / 
 
 200 
 260 
 
 00 
 00 
 
 aj6. 
 J"" 7 
 
 • 
 
 
 430 
 200 
 
 330 
 440 
 
 00 
 00 
 
 00 
 00 
 
 
 A^o 
 
 00 
 
 ^60 
 
 00 
 
 
 i 
 
 • 
 
 1 
 
 
 
 
 &i. (11) oJ/ad oAfewL 
 
 on. 
 
 g<8 
 
 /<5'/i 
 
 , Jmi* 2Ji-7ft ottte /ii'^n 
 
 40 00 
 
 
 Ccr-ti/iftlioji 
 { c'.r/tfn6e \ 
 
 J^O 
 
 CO 
 
 
 t\ 
 
 25 
 
 -!*•-■ -1 
 
 %'tU.. 
 
 
BOOK-KKEPINQ. 
 
 The closing entries in the preceding; sot of accounts will 
 each represent one of four things — an Asset, a Liability, a 
 Gain, or a Loss — and furnish the pupil with the two classes 
 of data for tlie estimation of liis Fimmcidl Position on the 24th 
 of June. Let him first malce out a statement of liis Assets and 
 Liabilities. The numbers refer to the \ irticular accounts in 
 the set. i 
 
 '■'■ ■ 
 
 
 Assets. 
 
 
 
 Liabilities. 
 
 
 b4^./ 
 
 waiifi tn Aftitn 
 
 ^05 
 
 qA^o. 3 
 
 (i^ omf4 0*1 ^o/t6 
 
 ifiO 
 
 
 QMfUe fit /lana 
 
 
 7 
 
 ^f. ow^d Q.^. Q^ond, 
 
 
 2 
 
 ' 9 
 
 1 d/f)CK-/aKiiin J 
 ff)tin'iia /lint on tto/ed 
 
 WHiu'ft Qj'o^/lfA OtOf4 
 
 
 ^ 
 
 on ftoeot^n/ 
 ott aecofini 
 
 2^0 
 40 
 
 
 OM acr.fif^yn/ 
 
 ^'jr 
 
 // 
 
 ^e oived Qy//. QjVfttut 
 
 
 4C 
 
 ^r4)44M ^wnl, ao 
 
 4W 
 
 
 Ion, on a^eottn/ 
 
 40 
 
 
 ////? 
 
 • 
 
 y 
 
 
 
 (^fiA /ttf4s*t/ tlf^ 
 
 3jd 
 
 
 / 
 
 /^(5'J 
 
 
 
 ■f4^6 
 
 
 
 
 
 
 m. 
 
 m 
 
 Next, talce the Gains and Losses in connection with the 
 Capital at the beginning. 
 
 • I 
 
 ^Jvo. Ji nrt.f'n Aotn iirMif 
 
 S 0u.l/a^^ /oi f,rAf>t6f 
 
 ©yfV/ rrrrnf 
 
 4/0 
 SO 
 
 3^0 
 
 
 i> 
 
 fpifat'nai ca/ii/nl 
 
 /S 
 
 t 
 
 \ 
 
 ...V 
 
 3'/,'! 
 
 
 •- 
 
 
 
 i@ 
 
• BOOK-KEEPING. 
 
 The account, No. 6, in the name of tlie pupil could not be 
 closed until tlie Not (Jain or Net Loss, as the case may be, had 
 been ascertained. The first, entry is intmjdeii to show liovv 
 much he put into the business, that i«, the Financial Posi- 
 tion at the beginning of the period under consideration ; and 
 the last or closing entry, the Fiiiniici;d Position at tiie end. 
 The former is already sJiown. To show the latter, if there has 
 been a net gain, it must be entere<l on tlie credit side, thus 
 increasing tlje Original Capital ; if there has been a net loss, it 
 must be entered on the <lebit side, thus lessening the Original 
 Capital. The difference between the two sides will then show 
 the Net Capital at the end of tiie ])oriod. The result of the 
 business in this case has been a net gain of $300. The accouitt 
 when closed will, therefore, appear as follows : — 
 
 'i. 
 
 (pupil's name.) 
 
 %. 
 
 ) 
 
 
 taAiUu 
 
 3'/3 
 3p 
 
 00 
 
 00 
 
 
 
 4S 
 3i>0 
 
 00 
 00 
 
 , '• 
 
 3^a 
 
 00 
 
 
 
 
 t 
 
 The pupil will see that in finding his Net Capital from the 
 second class of data, not one of the first class was required, 
 except that of the unsold merchandise. This, of course, was 
 necessary in order to find the gross gain from sales. He had 
 no need to know the cash in hand, nor the notes outstanding, 
 nor what was owing to him, or by him, on account. 
 
 He will also notice tiiat the latter mode is much shorter 
 than the former. If he had done business with five hundred 
 persons instead of live, as above, the first, method would have 
 been materially lengthened, while the same three accounts would 
 still have sufficed for the second method. 
 
 As the same result — the Net Capital — is obtained from two 
 different classes of accounts so very nearly independent of each 
 other, a strong proof is afforded of the accuracy of the work. 
 
 Iff 
 
 m 
 
 11 '. 
 
 Ill 
 
 37 
 
 U^'S 
 
BOOK-KERPINO, 
 
 ,1; 
 
 \'i ' 
 
 < i 
 
 In the same way,' any goritts of C(>nn«;ctc(l busineM transac- 
 tiona will furnish material for accounts which will show, in the 
 difference of their sides, the two classes of data necessary for 
 a double statement of the financial position at the *^nd of the 
 period embraced l>y those transactions. Let the student not 
 leave this exercise until he thoroughly comprehends every part 
 of it. 
 
 In working out the preceding exercise, the pu]»il must have 
 noticed — 
 
 I. That for every transaction, he made an entry in two 
 accounts. 
 
 II. That these entries were on opposite sides. 
 
 III. That they were equal in amount. 
 
 For example, the statement, June 1st, of the investment, 
 gavjean entry on the Cr. side of the account in his own name, 
 and one on Dr. side bf Cash to the same amount. The pur- 
 chase of goods from Abel Bond, on the 2n(l, gave an entry on 
 the Dr. side of Mdse, and one on the Cr. side of Abel BonVl's 
 account to the same amount. He has, indeed (a» d, perhaps, 
 without knowing it), been making a Double Entry Ledger. 
 
 Now, in the particular exercise here given, as all the trans- 
 actions are on credit, one of the entries injeach case was neces- 
 sarily in a personal account, and the other in an account 
 representing a thing. Common sense will tell him he can- 
 not dispense with the entries in the personal accounts ; he 
 may (tliough he had better not) dispense with the entries in 
 the accounts representing things. Had he done so, he would 
 have had a Single Entry Ledger. 
 
 If he will turn to the openings containing the accounts (pagt 
 22-25), he will find them arranged so as to assist him in under- 
 itanding the difference between- the two methods. The second 
 opening, taken alone, is Single Entry ; botb openings, taken 
 together, constitute Double Entry. In the former, he debits 
 and credits only persons ; in the latter, he debits and credits 
 both persons and things. And by " things," we mean 
 not only material, tangible things, such as cash, merchan- 
 dise, notes, but also any accommodation or advantage 
 to which, in business, a money value is attached, as use of money 
 (interest or discount), occupation of premises (rent), semlces of 
 clerks (wages), &c. 
 
 The learner will have anticipated the definition of the book 
 called the Ledger. Besides this, other books are used, of which 
 he will be shortlv informed ; but the Ledger is the principal 
 
 28 - 
 
BOOK- KEEPING. 
 
 > 
 
 ))OOk, all others being for convenienee, and subsidiary to it. 
 It is tho book in wliich all the trunsactions are classiiiod in tike 
 form of accounts. A butter single name could Aot, per- 
 lm[)s, liiive been cliosen for it. it is derived from the Latin 
 verb leyere, to lay or put together, to collect, to ])ick out. 
 
 We are about to introduce tho pupil to Single Entry Book- 
 keepiiij<, but we are anxious to impress upon his mind from the 
 very beginning, the undoubted superiority of Double Entry. 
 Let him not forget that the ultimate aim of a set of books ' 
 is to sh<»w at any time the financial condition of the busi- 
 n6SS^ and that this can be siiown in two ways : — 
 
 I. From a comparison of the Assets and Liabilities at the 
 time. 
 
 II. From the Capital at a former period, and the net gain 
 or net loss since. 
 
 And that Double Entry (as he has seen) furnishes tliese 
 two classes of data. 
 
 Bearing this in mind, he will be able, as he progresses, to 
 institute a comparison between Single and Double Entry, and 
 will probably discover in the end that the labor required in 
 tlie former, as commonly practised, is so nearly equal to that 
 required in the most approved modern forms of the latter, that 
 business men might well afford to give the little extra labor 
 necessary to make it such, and thus realize all the advantages 
 it offers. 
 
 QUESTIONS FOR REVIEW. 
 
 What is meant by selling goods on credit ? What arrangements may 
 Ikj made as to payment ? Write a Promissory Note. Write a Draft. 
 What must be done to a Draft to make it a promise to pay ? In what 
 respect do a Promissory Note and Draft agree, aud in what do they 
 differ ? How may debts owing to us be naturally divided ? How may 
 the debts we owe be divided ? What is the ultimate object of Book- 
 kcupiug ? Knowing a trader's Assets and Liabilities, how would we find 
 liis [financial position? Knowing his original Capital, and his Gains 
 and Losses since, how would we find it ? Of what do a trader's Assets 
 or Resources usually consist ? If a business is prospering, how are the 
 Assets and Liabilities varying 'n respect of each other? What is meant 
 by an Account ? Explain the foi'in of account commonly adopted. To 
 what do the terms Dr. and Or. priiuarxly apply ? Which side of an 
 account is called the Dr., and which the Cr. side ? What idea, in con- 
 nection with the naw?e of an account, is associajod with the Dr. side, 
 and what with the Cr. side? What does "Cash Dr." mean? What 
 does " John Jones Dr." mean ? What does "Cash Cr." mean ? What 
 does " John Jones Cr." mean ? Explain how tho Cash which ought to 
 be in hand is found. Explain how what is owing to us on Others' Notes 
 is found. Explain how what we owe on Our Notes is found. Explain 
 
 29 
 
 f 
 
 '1 
 
 u'i 
 
 
,> 
 
 BOOK-KEEPING. 
 
 "(Ill 
 
 I 
 
 how what is owing ni, or what we owe others, when no notes have been 
 received or given, is found. Explain how the Gain or Loss on mer- 
 chandise in f(»und. In the example of couuccted accouuta, how often <• 
 ttack fact stated ? What name is given to the hook containing such % 
 collection of accounts ? [f wo call ourselves tlie First Party, and the 
 person we aie doing huaiucss v/ith the Second Party, whose part in the 
 tranaaction do wo mainly consider in a personal account, and whose in a 
 non-personal account ? Which of these acoounta, taken alone, constitate 
 Single Eiary ? Which cunstitute Douhle Entry? 
 
 , CHAPTER VI. 
 
 .INTRODUCTORY REMARKS TO SINGLE ENTRY. 
 
 In Single Entry, the Ledger contains accounts only for 
 persons. The transactions which affect any persons in their 
 relation to ns as Dr. or Or. in;<.y ha entered at once in the 
 Ledger, or ihey may first he entered in a book called the Day 
 Book, and afterwards, at convenience, transferred to the 
 Ledger. . 
 
 If James Smith sells to John Brown, July 1st, 1876, one 
 felt hat on credit, for $3, he may enter as follows : — 
 
 DAY BOOK. 
 
 uS'/t. \ 
 
 1 /ift^ 
 
 LEDGER. 
 
 7 Z' ^/y/)' 
 
 %. 
 
 00 
 
 Or, he may dispense wilh the Day Book, and use only the 
 
 Lodger. 
 
f BOOK-KKEPING. 
 
 John Brown in his books would write as follows :-— 
 
 ' ' ' DAY BOOK. 
 
 ^u one ff/i tiai 
 
 / V 00 
 
 i. 
 
 ' Zetme^ Q. 
 
 LKDHER. 
 
 m. 
 
 
 qSu one /e// 
 
 S 
 
 00 
 
 Or, he r.ay dispense witli the Day Boole, and use only the 
 Ledger. « 
 
 We have here used the preposition " To " in the debit entry, 
 and "By" in the credit entry, out of drft-rence to custom. 
 Some do not use them. And certainly Joliu Brown is not 
 Dr. to the Hat, but to us. for the Hat. Indeed, the word 
 "for" would, in general, better express the meaning, if it be 
 thought necessary to use any word at all. 
 
 The following examples will fnrtlier illustrate the mode of 
 entering transactions iu the l)ookji; of both del)tor and creditor, 
 with which the pupil should become familiar before progressing 
 further. For this ]>urpose se{)aratn she»?ts of paper, ruled by 
 the pupil, should be used. Let the pupil write the transactions 
 on one page, numbering them, and make the proper entries on 
 another, with their corresponding numbers and correct dates, 
 as in the following examples. The pupil should be required 
 to write out a number of transactions, in addition to those 
 given in the book, and after havini; studied them carefully, be 
 prepared in recitation to give the entries <>n the blackboard. 
 
 The learner should, from the first, invariably compute the 
 value of all articles bought or sold, whether the calculations 
 are made in the book or not. It would be to his advantage to 
 do this in studying any treatise on Book-keeping. But in the 
 use of this work it becomes absolutely necessary ; for transac- 
 tions are soon introduced where such computations are un- 
 avoidable. 
 
 31 
 
 »i 
 
 rf 
 
 
 
 
BOOK-KEJiPiNG. 
 
 TRANSACTIONS TO BK RECORDED IN THE BOOKS OF BOTH 
 
 THE BUYER AND SELLER. 
 
 II 
 
 
 Iff' 
 
 v 
 
 i 
 
 Transaction 1.— January 2nd, 1877. 
 
 John Brown buys of James Smith one felt hat, for which he 
 agrees to pay him three dollars. 
 
 John Brown is the debtor, because he is the receiver. James 
 Smith is the creditor, because he is the giver. 
 
 Transaction 2.— January 3rd, 1877. 
 
 Wm. Jones sells to Peter West one pair of boots, for which 
 he is to pay him five dollars. 
 
 Peter West is the debtor, because he is the receiver. Wm. 
 Jones is the creditor, because he is the giver or seller. 
 
 Transaction 3.— January 4th, 1877. 
 
 ■ Robert North sells to George South four reams of paper, for 
 which he is to pay twelve dollars. 
 
 George South is the debtor, because he iv, the receiver. 
 Robert North is the creditor, because he is the giver. 
 
 Transaction 4. — January 5th, 1877. 
 
 B. M. Norma* buys of J. B. Graham one overcoat, ior which 
 he is to pay twenty dollars. 
 
 B. M. Norman is the debtor, because he is the receiver. J« 
 B. Graham is the creditor, because he is the giver or seller. 
 
 32 
 
BOOK-KEEPING. 
 
 I 
 
 MODE OF ENTERING THE FOUEGOIiNG TRANSACTIONS. 
 
 
 
 No. 1. 
 
 
 
 
 ajj. 
 
 
 James Smith enters in his book — 
 
 . 
 
 
 
 /an. 
 
 2 
 
 /ii/i/t ij/j'i-otii^n 
 
 iS/fl ijtie fell nal 
 
 John Brown enters in his book — 
 
 ^i 
 
 3 
 
 00 
 
 /.n. 
 
 2 
 
 oMt/^ one Au AeU 
 
 ^i. 
 
 S 
 
 00 
 
 
 
 No. 2. 
 
 
 
 
 
 
 Wm. Jones writes in his book — 
 
 
 
 / 
 
 Rm. 
 
 3 
 
 ^etei 7rea 
 
 ^i. 
 
 
 
 
 
 q/« one /tail M vooU 
 
 
 S 
 
 00 
 
 
 
 Peter West writes in his book — 
 
 
 
 
 /mi. 
 
 S 
 
 «>»*^ one iuti*. o* /koeii 
 
 ^. 
 
 1 
 
 00 
 
 
 
 No. 3. 
 
 
 
 ' 
 
 
 
 Bobert North writes in his book — 
 
 
 
 
 /m. 
 
 ^ 
 
 ueoiae wfoiit/i 
 
 &o jfina len/md o/ ^he^ ui 0S 
 
 George South writes in his book— 
 
 Bi. 
 
 /^ 
 
 00 
 
 /h. 
 
 ^ 
 
 Mc^l Q/Voi//i 
 
 ^. 
 
 
 
 
 
 <a^^ j^044*. lea*n<i o//uf/iel eU $6 
 
 » 
 
 42 
 
 oo 
 
 
 
 No. 4. 
 J. B. Graham enters in his book — 
 
 
 
 
 /n 
 
 J 
 
 ^. ©4^ QjVoim.O'n 
 
 Bi. 
 
 
 
 
 
 ®/o o^e ofj*icca* 
 
 " 
 
 20 
 
 CO 
 
 
 
 B. M. Norman enters in his book— 
 
 
 
 
 /n. 
 
 J 
 
 ^^ o.'« cv*tro(t/ 
 
 %. 
 
 20 
 
 00 
 
 \it 
 
 
 ^ 
 
 ■i 
 
 crrr 
 
 ( r 
 
 '66 
 
'.\ 
 
 BOOK-KEEPINQ. 
 
 f 
 
 SINGLE ENTRY 
 
 I 
 
 II 
 
 It 
 
 INSTRUCTIONS.— SET I. 
 
 The most simple form of ke«^ping accounts is presented in 
 this set. It is vv(^ll adapted for mechanics and others whose 
 business transactions are very limited. Only one book is used, 
 the Ledger, and the transactions are entered directly in it without 
 the intervention of a Day Book. The space to be appropriated 
 for any account, in actual business, will be greater or less ac- 
 cording to the extent of the per.son's dealings. Open only one 
 account on each page in this set, as there are but few persons 
 with whom you have dealings and the accounts are long. Th«. 
 name of the person should be written in a fair bold hand, so 
 that it may be readily seen when turning the leaves, and 
 easily distinguished from the other writing. Over the double 
 money columns to the right of the page, write "Dr." and 
 " Cr.," to show where the amounts of the items are to be placed. 
 
 In writing up this set, first read the narrative of transac- 
 tions, and write ea h entry in its proper account, in the order 
 of its date. 
 
 The first transaction to be entered is the purchase of iron 
 and coal, from John Smith, on the 2nd of September, Open 
 an account for John Smith by placing his name in a large bold 
 hand at the top of the page, and over the double money 
 columns to the right, place " Dr." and " Or.," as directed above ; 
 then enter to his Cr. the items purchased from him. Next 
 open an account for William West, and enter, to the Dr. side, 
 the work done for him ; then open Thomas Brown's account, 
 and charge him with the work done on the 3rd, and so on, 
 making all the entries of one day before making any of the 
 succeeding day. In making the entries, first write the date on 
 the left, then the item, and lastly the amount in its proper 
 column. The word " To " is prefixed to the items for which 
 the accounts are debited, and the word " By " to those ior 
 which the accounts are credited. Great care should be taker 
 to avoid placing the amounts in the wrong columns. 
 
 Before closing the Ledger, which should ^ done at stated 
 periods, every transaction that will afi'ect an) .c count should be 
 entered, and settlements effeeted as far as piacticable. Thii? 
 
 34 
 
■ ^- BOOK KEEPING. 
 
 done, add the amount^ that are in the columns of the different 
 accounts — such as Win. West's, and others that have the foot- 
 ings of the Dr. and Cr. columns equal, rule off, and place the 
 footings as shown in the account. If one side of the account is 
 larger than the other, as shown by John Smith's account, find 
 the difference between the two sides, write tlie date of closing, 
 and say, as the case may be, " To " or " By " balance, and place 
 the difference or balance on the smaller side. 
 
 After the Ledger is closed, make out the statement. This is 
 a very important part of book-keeping, as it shows the results 
 of the business and the general condition of affairs. The state- 
 ments should contain a list of all property belonging to the 
 business, a list of all accounts against others, and also a list of 
 all debts owing to others. 
 
 lu subsequent sets the statements will include a greater 
 variety of accounts. 
 
 i I 
 
 :u 
 
 
 1; 
 
 I 
 
 1876. 
 
 TRANSACTIONS.— SET L 
 
 MECHANICS' FORM. 
 
 M 
 
 3rd. 
 
 Sep. Ist. Rented the shop and tools of John Smith, at ninety- 
 six dollars per year, for the purpose of carrying on 
 the business of a blacksmith. 
 ** 2nd. Bought of John Smith, on one year's credit, his stock 
 of iron and coal — 5000 lbs. iron at 5c. and 5 tons 
 coal at $8— $290. * 
 
 Shod 2 horses all around, for Wm. West, $1 ; re- 
 paired his waggon and set 1 tire, $2.20. 
 Made 1 large clevis for Thomas Brown, $1.25 ; mended 
 2 barn hinges, 30'c. ; and tempered crow-bar, 20c. 
 ** Mended trace chain for George Weaver, 30c. ; shod 
 i 1 horse (fore feet), 50c. ; set waggon tire, $1 ; 
 ironed neck yoke, $1. 
 4th. Mended log chain for John Smith, 2 new links, 40c. ; 
 sharpened and set 4 shoes, 75c. ; sharpened coulter, 
 25c. ; 1 pair small clevises, $1. 
 5th. Received from Wm. West 5 bush, potatoes, at 40c ; 
 4 lbs. butter, at 25c. ; 10 lbs. cheese, at 10c. 
 " Re^raired plough for John Smith, $1 ; rod for same, 
 20c. ; 2 bolts, 35c. ; 1 clevis, 50c. 
 8th. Ironed 1 bucket for Thomas Brown, 81.25 ; shod 
 colt, 4 new shoes, SI ; tempered drill and pick-axe, 
 25c. ; and ironed whiffletrees, 50c. 
 
 35 
 
 «< 
 
 « 
 
 M 
 
 l< 
 
 it 
 
 « 
 
 lh\ 
 
BOOK-KEEPING. 
 
 iK 
 
 « 
 
 (( 
 
 M 
 
 H 
 
 U 
 
 u 
 u 
 
 ,1 ' 
 
 (I 
 « 
 
 t< 
 
 <t 
 
 <( 
 
 « 
 
 16th. 
 
 Sep. 9th. Ironed waggon for George Weaver, $15.25 ; mended 
 shovel. 20c. ; and repaired sulky, $2.20. 
 10th. Received from Thomas Brown 1 turkey, $1; 1 load 
 wood, $2. Sliod his horses all around, 4 new 
 shoes, $1.50 ; sold him 4 hooks ami staples, at 16c.; 
 
 1 iron wedge, 75c. 
 12th. Repaired drag for John Snii.h, 2 new bands, 50c. ; 
 
 ironed neck-yoke, $1 ; ironed wliitiletrees, $1.50. 
 ** Received from George Weaver 5 doz. eggs, at 15c. ; 4 
 bags apples, at 40c. ; 1 quarter lamb, 15 lbs., at 10c, 
 13th. Mended waggon box for Wm. Went, $1.25 ; sharp- 
 ened 15 drag teeth, at f'j. ; .v links for trace 
 clwiin, at 15c. 
 loth. Sold John Smith 40 lbs. gate hinges, at 15c. ; 10 
 lbs. bolts, at 12^c. 
 
 Repaired biiggy shaft for Wm. ^Yebi, v,Oc. ; set 2 
 
 shoes, 25c. j mended shovel, 25c. 
 
 Sharpened and set two shoes for G3orge Weaver, 
 
 35c. ; repaired cultivator, $1.25 ; sold him 1 large 
 
 clevis, $1.20. 
 
 Mended shovel for Thomas Brown, 20c. ; sold him 
 
 2 bands for harrow, 50c. ; and set two shoes (colt's 
 fore feet), 25c. 
 
 17th. Received from Wm. West 1 brace chickens, 60c ; 
 4 bush, potatoes, 30c. 
 ** Repaired bug'gy for John Smith, $3.20. 
 20th. Received from Thomas Brown, on account, 6 lbs. 
 
 butter, at 20c. ; 4 bush, apples, at 25c. 
 24th. Received from George Weaver, on account, J ton 
 hay, $6.25 ; 1 bbl. flour, $5.50. 
 ** Repaired ox-yoke and chain for Thomas Brown» 
 $1.80 ; and set two slioes, 25c. 
 25tli. Sold George Weaver 4 strap hinges, at 25c, ; I 
 
 clevis, 75c. ; 1 hook and staple, 15c. 
 26th. Received from Wm. West cash in full of accoun.> 
 $1.10. 
 " Sold Tliomas Brown 1 pair buggy springs, 356.50. 
 29th. Received from George Weaver cash, in full of ac- 
 count, $9.55. 
 " Ironed lumber waggon for John Smith, $14.40 
 30th. Received from Thomas Brown cash, in full of a«>- 
 count, $i4.10. 
 
 / have on hand iron^ as per inventory, $210 ; roaZ, $30 ; r/umu* 
 fachkrtd horse shoei,, boUSy clevises, d;c., $30.50. 
 
"1 
 
 book-kp:eptng. 
 
 ::. 'r 
 
 ~J^/7n Qym/m. 
 
 i. 
 
 /^/S. 
 &'^ 
 
 ft 
 t< 
 t* 
 
 
 tt 
 
 li 
 
 16 
 
 17 
 29 
 SO 
 
 ^■u 5000 //'A iior>, af ,5e. . 
 
 (>//<»> ffiim / fCo cfio')» f 2 
 
 " / /tail Antau eMiii^H 
 
 '' 2 /uJU 
 
 " / e/evid 
 
 '^ eAf/iat/U.na tuaa (2 if mm 
 
 oattfM ) 
 
 " Q/'ionina / ne^K uo/^ 
 " " /y4« c/ tu4jl^/fAefd 
 
 " J^O ^M. naie AinaeA, ai ^Oc. 
 
 " ^0 " 4clf6, at ■/2y2e. 
 
 *' Qyio*i*fM ut^nMi utaaaei* 
 /' <i^a/anee to 'new aceoivnt 
 
 1 
 1 
 6 
 1 
 S 
 
 H 
 
 257 
 
 290 
 
 40 
 
 75 
 
 
 00 
 
 00 
 20 
 Sb 
 
 50 
 
 50 
 
 00 
 50 
 00 
 
 25 
 20 
 
 40 
 
 70 
 
 00 
 
 9jU 
 
 
 250 
 40 
 
 00 
 00 
 
 290 
 
 00 
 
 V. it 
 
 In 
 
 I 
 
 Ik 
 
 ! 
 
 i H 
 
 Note. — It is usua! to rule with red ink And it is also re- 
 commended (although we have not found it convenient to do 
 this in the book) to write the closing entries in red ink, in order 
 that the eye may more readily distinguish entries of transac- 
 tions from mere dosing entries. 
 
 w 
 
 
BOOK-KEKI'ING. 
 
 /ff/ua^t //edt. 
 
 Bi. ^i. 
 
 V 
 
 . : 
 
 
 f( 
 
 tt 
 
 ft 
 
 H 
 
 V'_ 
 
 2 
 
 IS 
 
 j/fl cffncfj'iia ^ /iei4M ai/ ffifuna 
 
 t( 
 
 &Jif/irrt'i 
 
 linn / ti)f. 
 
 </ df/J 
 
 15 
 
 17 
 
 t6 
 
 &€ <?ynmeutta loanaon oca: 
 
 " wfnai/ieifina ■^J may hf(A, 
 
 ai /Je. 
 
 *' fLnf/iailina *^'^rflf^ 6najfi 
 
 " ^fHina 2 6Ace6 
 
 " Qyfff.naiiiq / dnonef 
 
 '< j^ /jti,s/!. hoiaiof6, fti .JOe 
 
 ** wa6n. in /tu/ o/ account 
 
 .. <l 
 
 00\ 
 
 20 
 
 S5 
 76 
 
 60 
 
 50 
 25 
 
 
 6\ SO 
 
 2 
 1 
 
 00 
 00 
 00 
 
 1 
 1 
 
 50 
 20 
 10 
 
 80 
 
 S8 
 

 H 
 
 U 
 
 €t 
 ft 
 
 tt 
 
 U 
 
 BUOR-RKEPrKG. 
 
 Bi. ^i. 
 
 10 
 
 " ^feneufia ^ ■fialti Autaei 
 
 8 " of i riling / Aue/!fi 
 
 ** w/ioti»a ecu, Ji ttftv 4nf)€6 
 " &ftn/t€iina tuut ana kicKcuBt 
 
 My / i€i\/n/, 
 " / /oaa ^4iooa 
 
 fj^ new. 6Ao(4\ 
 " J^ /€>o4d a*tf/ d/aAAd at ^6c, 
 " / €t/)*i utecMe 
 
 " 2 tiamU /oi naUoui 
 
 " Stt4t»Q 2 AAo4Ui {ecA'6 /«Um 
 
 " Ji- At4A. aAjUe4, at 26e. 
 &c 9Mf/taiunn ooi-uoKf. anaemain 
 *' m*tUna 2 dAoed 
 
 lu wa^Af in jfuu cj aceoitnt 
 
 16 
 
 20 
 
 26 
 SO 
 
 8 
 
 19 
 
 25 
 SO 
 20 
 25 
 00 
 25 
 50 
 
 60 
 60 
 
 7r 
 
 20 
 60 
 
 26 
 
 80 
 
 25 
 50 
 
 10 
 
 1 
 $ 
 
 00 
 00 
 
 1 
 1 
 
 00 
 00 
 
 u 
 
 19 
 
 10 
 
 10 
 
 '! < 
 
 i * 
 
 ■ m 
 
 Jrk.. }■ 
 
 '**s.i ■■■" 
 
 I ' 
 
 ". ■ S[:- 
 
r 
 
 BOOK-KEEPTNG. 
 
 
 tt 
 
 it 
 
 I- 
 
 12 
 
 15 
 
 
 '"' '"'' utaaaon 
 
 *■' 0^ir.nrtl)in / 6novm 
 
 «^ /taa6 a/i/t/e/', at ^Oe. 
 ■/ oi. /<Mnu, ^3 /fi4. , ft/ /0e, 
 (£ffi &/iai/i«ftir)a ana 6*iili»n IB 
 
 aRf/iftikina / rur/tna/ci 
 *' / /a.l4ie e/eniA 
 
 ^'/ /'z ^<'*f na^ 
 <' / ///^«* 
 e/<3 ^ dliaA /t4^ae4, a4 ^Sc. 
 
 '' / Am)4. ana ilaA/r 
 
 tt 
 
 25 
 29 
 
 1 
 
 1 
 
 15 
 
 2 
 
 SO 
 50 
 00 
 00 
 25 
 20 
 20 
 
 S5 
 25 
 20 
 
 00 
 75 
 15 
 
 25 
 
 16 
 
 I 
 
 25 
 
 76 
 60 
 50 
 
 25 
 60 
 
 55 
 15 
 
BOOK-KEEPING. 
 
 aiemeni oj( (^ledouiced etna <^ia/jutli€d. 
 
 ^"^-u 
 
 $%yjo 
 
 00 
 
 ao 
 
 00 
 
 ,w 
 
 oO 
 
 24- 
 
 p 
 
 oMf.iotiicf-i. 
 
 Qylon en nftttf/, vtuiiea ai * 
 
 <!>Jni€e /on4 co<u, «/ ^ ^0 » 
 ^<T^W<e AnoeAf uvtiA una cteuuifk-, 
 
 v)adn in Mina m m m ^ 
 
 l^ola/ !Mfaouic*A - , - Si323 23 
 
 G^wt cuUna ^)An oAnilA, on acctrnn^ ^ SSJ'T 70 
 0*t€ tnon^AU U*U, aU $06 h€i ueul ' ^00 
 
 ^ola/2!iadUi4^ . = . , S265 JO 
 
 WwtUne* €t€(t*tee*t ^aedo€tie«6 <tnd ^^Ui^t/Uud, oi 
 
 QJVU ^If^oUA m m m m $50 S3 
 
 As you began without capital and are now worth $59.55, 
 you must have gained this amount during the month you have 
 been in busini ^s. 
 
 ! 
 
 \ 
 
 I 
 
 
 FIRST SET FOR PRACTICE. 
 
 USB ONLY THE LEDGER, SAME AS IN PRECEDING SET. 
 
 On Jan. 3rd, 1877, commenced business with $1500 in cash. 
 Paid for store fixtures, $200; for goods, as per invoice, $800.* 
 
 THE FOLLOWING TRANSACTIONS ARE TO BE ENTERED. 
 
 Jan. 4. Sold R. J. Wallace, on account, 1 broadcloth coat, $30 ; 
 
 pants and vest, $15 ; overcoat, $7. * 
 
 " 5. Sold W.J. Graham, 1 pair pants, English cassimere, 
 
 $10 ; 1 sack coat, blue melton, $20 ; 1 pair striped ' 
 tweed pants, $10. 
 " 6. Sold James Hughes, 1 beaver overcoat, $30 ; 1 Scotch 
 tweed coat, $12. 
 
 * No entry is to be made of the foregoing in the Ledger, bnt a memoran* 
 dom of it should be kept. 
 
 41 
 
 f*l: 
 
 'i ■■ 
 
 
 >^' 
 
 
. I 
 
 BOOK- KEEPING. 
 
 I t 
 
 Jan. 8, Sold Geo. Denmark, I nocktie, $1.25 ; J do*, hand. 
 
 kerchiefs, $2 ; anil 1 pair suspendeiB, $1. 
 •• 9. Sold J. R. Dinginan, 1 boy'8 suit, tor son John, $18 ; 
 
 and 1 coat for Robert, French cassimere, $8. 
 " U. Bought of John McDonald & Co., 1 piece of English 
 
 broadcloth, 25 yds., at $3. 
 " 12. Sold J. R. Dingniaii, 1 pair doeskin pants, $8; 1 
 
 vest, $5. 
 ** 15. Sold Geo. Denmark, 2 neckties, at 25c. 
 ** l(\. Received from R. J. Wallace, on account, $20. 
 *• 17. Sold W. J. Graham, 1 pair French cassimere pants, 
 . ' $10 ; 1 satin vest, $5 ; 1 overcoat, $25 ; 1 suit Scotch 
 
 tweed, $25. 
 *« 19. Bought of John McDonald & Co., 24 yds. French 
 
 cassimere, at $2 ; and 10 doz. linen handkerchiefs, 
 .) at $3. > 
 
 " 22. Received from W. J. Graham, on account, 4 tons 
 
 coal, at $8. 
 " 23. Paid John McDonald <k Co., on account, $50. 
 " 24. Sold R. J. Wallace, 1 dress coat, $30 ; 1 cassimere 
 
 vest, $6 ; 2 pairs hose, at 45c. 
 " 25. Received of J. R. Dingman, cash on account, $5. v 
 " 26. Sold to A. B. Chatham, 1 black cloth coat, $20 j 1 
 ' pair cassimere pants, $8.25; took in payment an 
 
 order given by James Hughes. 
 
 Charge these goods to James Hughes^ as they were 
 
 given on his accmmt. 
 " 27. Sold J. R. Dingman, 6 shirts, at $2 ; and 1 frock coat, 
 
 French cloth, $30. 
 ** 29. Gave John McDonald & Co. my note at 3 months, 
 
 on account, $53. 
 •* 30. Received from W. J. Graham, his note at 2 months, in 
 
 full of account, $73. 
 ** ** Received from George Denmark, cash in full of ac- 
 count, $4.75. ' 
 
 THE FOLLOWING ARE THE RESOURCES AND LIABILITi::aS, NOT 
 
 SHOWN ON LEDGER. 
 
 ; ■■ : 
 
 Merchandise unsold, as per Inventory, $750 ; Bills Receivable on 
 handy W. J. Graham's Note for $73 ; Cash on hand, $479.75 ; 
 Store fixtures, $200 j Am owing mi, Note, favor ofJoIm AfcDoimlil 
 '^Cb., $53, 
 
B00K-K££P1N0. 
 
 STATEMENT OF RESOURCES AND LIABILITIES. 
 
 nBST SET FOR PRACTICE. 
 
 Hesouices. 
 
 Merchandise unsold, as per Inventory 
 Bills Receivable, W. J. Graham's Note for 
 
 Cash on hantl 
 
 Store fixtures, as per valuation - 
 R. J. Wallace owes on account 
 James Hughes 
 J. £. Dingmau 
 
 t( 
 
 i< 
 
 .( 
 
 if 
 
 Total Resources - 
 
 * < 
 
 Liabilities. 
 
 Am owing uox..i McDonald & Co., on account 
 Bills Payable, outstanding Note for - - 
 
 Total Liabilities - 
 
 Total Resources at closing 
 ** Liabilities 
 
 (t 
 
 Difference, or present Net Capital 
 
 $750 00 
 73 00 
 479 75 
 200 00 
 68 90 
 70 25 
 76 00 
 
 $1717 90 
 
 - $50 00 
 53 00 
 
 - $103 00 
 
 .$1717 90 
 - 103 00 
 
 $1614 90 
 
 $1614 90 
 - 1500 00 
 
 - $114 90 
 
 Present Net Capital 
 Deduct Net Investment - 
 
 Net Gain - 
 
 The pupil will see by the above statement, that — 
 To find the Net Capital we subtract the Liabilities from the 
 
 Resources, and 
 To find the Net Gain we subtract the Net Capital at starting 
 
 from the Net Capital at closing. 
 
 Note. — If the Net Capital at closing is less than the Net 
 Capital at starting, the difference will show the loss , and if the 
 Liabilities are greater than the Resources, the difierence will 
 show the Net Insolvency. 
 
 4S 
 
 J 
 P 
 
 I; \l: 
 
 i-^ 
 
 
 mW4 
 
 
 I' '■ . h 
 
^^ BCC5-KEEPINa 
 
 QUESTIONS FOR REVIEW. ^. 
 
 How many bonks are used in Set I.T For what kind of business is 
 this mode of keeping books adapted? How is the epace to be allowed 
 each account <k;teriiiinedf For what is the left hand mart;inal column 
 used ? For what ia the space between the date coluiini and the money 
 columns used ? l^'or what are the; left hand money columns used ? For 
 what the right ? What are done with the accounts that have the debits 
 and credits ^qual ? What doefe a double red line under an account in- 
 dicate ? What colored ink is used for ruling and balancing ? How are 
 accounts closed in which one aide is larger than the other ? On which 
 side and in what colored ink is the balance placed '; What should be 
 made at the time of closing the Ledger? What should the statement 
 contain ? 
 
 lu answering the following, the pupil may have his statement before 
 him : — 
 
 What effects have you on hand at the time of closing ? How mnch 
 cash ? How much do you owe others ? How much do you OM'e in 
 notes? What are your total resources at closing? What are your 
 total li ; ties? How much is the dilference betw;een your assets and 
 Uikbilitii Wha'b is it called ? 
 
 SINGLE ENTRY. 
 
 INSTRUCTIONS.— SET II. 
 
 In the following set, instead of entering the transactions 
 directly into the accounts, as was done in the preceding set, 
 they are first recorded in the Day Book, and afterward trans- 
 ferred in an abbreviated form into the Ledger. When business 
 transactions become numerous, it is inconvenient to turn to 
 the proper accounts and enter each transaction at the time it 
 occurs. Another disadvantage of the preceding form is, that 
 it would require considerable trouble to ascertain what business 
 had been done on any particidar day, whereas by the following 
 method this may be seen almost at a glance. 
 
 T)AY BOOK. 
 
 All transactions which affect the debit or credit of any 
 person with whom an account should be kept, are tirst re- 
 <5orded in this book. 
 
 44 
 
BOOK-KEEPIKa 
 
 Whenever you sell a person anything, pay him money, per 
 , form work for him, or he in any manner becomes indebted to 
 you, he must be debited with the same in this book, to show 
 that he owes you. And wheiuver any person sells you 
 anything, pays you money, does work for you, or you in any 
 way become indebted to him, he must be credited with the 
 same in this book, to show that you owe him. 
 
 In entering purchases it is allowable to say " Am't as per 
 ' Bill," or " Am't as per Invoice," and omit the detail of 'items, 
 since you have the Invoice filed away or pasted in a book, and 
 can refer to it at any time ; but in entering sales the items 
 should alwayj be mentionedj as 'jhis is your only evidence of the 
 transaction. 
 
 LEDGER, 
 
 The Ledger of this Set differs from that of Set T., in the 
 arrangement of debit and credit entries. Each page is ruled 
 in such a manner that the debits are kept on one side, and the 
 credits on the other, entirelv distinct from one another. All 
 the entries, scattered, in different parts of the Day iJook, that 
 affect the accounts cf each person are here collected under his 
 name, and so arranged as to exhibit, in one place, all his deal- 
 ings with U8. 
 
 The proprietor, George Hairgrave, commenced business witli 
 the property and with the amounts due him, as specified in the 
 first entry of the Day Book. 
 
 He therefore credits himself with the whole amount, $3310, 
 as his investment, and debits himself with the amount he owes 
 Johnson. Richard Dawson is debited for Avhat is ^.m> ^rom 
 him, in order that it may appear in his account in the Led^,>flr. 
 John Johnson is next credited with the amount due him. This 
 finishes the opening entries, and the books are now ready for 
 any transactions that may take place. As the transactions oi 
 this set are all of a simple nature, special explanations con- 
 cerning them have not been considered necessary. The entries 
 ^ should be arranged in the Day Book just as they are given. 
 
 All cash transactions are omitted except those alTecting 
 the accounts of persons with whom we have dealings, addi- 
 tional investments, and the withdrawal of money for purposes 
 not connected with the business. 
 
 The figures in the centre, between the entries, represent tht 
 dates when the transactions took place. The ruhngs sliould 
 always be in red ink, and may be omitted until a page is filled. 
 
 . *45 
 
 W i 
 
 ', :J 
 
 
 \M\ 
 
 f 'i 
 
 'I/' 
 
 ' i,»f 
 
i^: 
 
 BOOK-KEEPING. 
 
 They are for the purpose of keeping the entries distinct, and 
 thus renderiiig their transfer to the Ledger less liable to 
 mistakes. 
 
 The figure in the left hand miirginfd column shows the page 
 of the account in the Ledger, and denotes that the entry has 
 been posted, and should, therefore, not be written till that is 
 done. 
 
 Posting is done as follows : — after writing the name of the 
 person who is to be debited or credited over the space allotted 
 to his account, with " Dr." on the left and " Or." on the right, 
 then write on the proper side of the account, first the date, 
 next the description or item, then the folio or page of the Day 
 Book from which the entry is transferred, and lastly the amount. 
 After this is done, turn to th,e Day Book, and \v the column to 
 the left of the transaction place the number of the page that 
 the account is on in the Ledger, to show that the entry has 
 been posted. In each book the page of the other is given for 
 reference in examining accounts, making out bills, && 
 
 When there are several items in the Day Book entry, in 
 order to save writing, they are called " Sundries " or " Mer- 
 chandise" in the l^edger, and the total amount is entered. 
 The items can be obtained by referring to the Day Book. 
 
 It will be observed that P. L. Dorland paid his account in 
 full on the 10th of Jan., when it was closed up, but having 
 occasion to do further business with him, the traudactions were 
 posted in the same account. 
 
 After all the entries in the Day Book are posted, examine 
 them, to see that your work is free from error. Then proceed 
 to close the accounts. Those that remain unsettled are closed 
 by a red ink entry, writing the words " To " or " By Balance " 
 on the smaller side, as in Set I. Accounts such as Peter 
 Cooper i^z Co., in which the Dr. and Cr. sides are equal, are 
 closed by ruling up same as in example. 
 
 The proprietor's account should be left open until the gains 
 or losses have been ascertained, and after the statements are 
 completed, the gains should be entered to the credit side, or the 
 losses to the debit side of this account. Then close the account, 
 and bring the balance, which shows his Net Capital, down to 
 new account. 
 
 If the result of the business should be a loss sufficiently large 
 to make the debit side of the proprietor's account larger than 
 the credit, the difference or balance will show his Net Insol- 
 vency, 
 
 46 » 
 
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 BOOK-KEEPING, 
 
 SINGLE ENTKY. 
 
 STATEMENTS— SKT II. 
 
 . s 
 
 pi 
 
 iiii' 
 
 S, 
 % 
 
 d/fa/anc€4 rd //le ^cuacl, Tan, S^J^ /o^^- 
 
 Pcraonal Accouuts Receivabl 
 
 !. 
 
 rersonal Accounts Payable. 
 
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roOK-KEEPINO. 
 
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 SECOND SET FOR PRACTICE. 
 
 MEMORANDA OF TRANSACTIONS TO BE REOOKDED AND WORKED 
 '^IIT LIKE THE PRECEDING SET. 
 
 M . A. W. T* tnton commences the Grocery Imsiness, in- 
 
 vcstii .^ as follows : — Mdse, as per inventory, $2450 ; 
 n«'>te against L. R. Lazier, dated Nov. 4, 1876, at G 
 months, for $400 ; Cash on hand, $1000 ; balance 
 oCE. B. Portia I's account, $150; he owes S. W. 
 Houston, on account, $200. 
 2. Sold a W. Houston, 20 lbs. Refined Sugar, at 10c. ; 
 2 lbs. Young Hvson Tea, at 90c.; 2 lbs. Oolong 
 Tea, at 90c. ; '" lbs. Coffee, at 25c. 
 " .3. Sold E. B. Portland, 12 half chests Y. H. Ten, 32 lbs. 
 each, at 60c. : 4 lbs. Coffee at 25c. ; 10 lbs. ("'^-traeal, 
 at 10c. ; 10 lbs. Butter, at 30c.; 8 lbs. Cheese, at 
 
 at 12Jc. 
 
 ii 
 
 '.■»' 
 
 67 
 
'I 
 
 I'lr 
 
 II 
 
 H 
 
 :,i;1 I 
 
 
 « 
 
 « 
 
 « 
 
 « 
 
 it 
 
 /; BOOK-KEEPING. \ . 
 
 1877. ' 
 
 Mar. 4. Sold C. V. Bogait, 2 papers Corn Starch, at 15c. ; 1 
 piece Smoked Beef, 15 lbs., at idc. ; 18 lbs. Cheese, 
 at 12^0. 
 
 5. Bought of R G. Brown, 200 lbs. Cheest>, at 8c. ; 50 
 doz. Eggs, at 10c. 
 
 6. Sold E. B. Portland, 1 bag Hominy, 60c. ; 10 lbs. 
 Coft'ee, at 25c. , 4 gals. Cider Vinegar, at 35c. ; 2 
 bags Salt, at 20c. ; 5 doz. Eggs, at 15c. 
 
 8. Sold C. V. Bogart, 8 lbs. Butter, it 30c. ; 5 lbs. 
 Lemon Biscuit, at 15c. 
 
 9. Received from E. B. Portland, Cash on account, $50. 
 
 10. Sold S. W. Houston, 5 lbs. Butter, at 30c. ; 1 bag 
 Buckwheat Flour, $1.25 ; 1 box Soap, 40 lbs., at 
 8c. ; 2 lbs. Powdered Sugar, at l2Jc. ; 10 lbs. 
 Cheese, {\t 12ik. ; 1 gal. Syriip, ^i, 
 
 11. Sold R G. Brown, 10 bags Floi- , at $1.25. 
 
 12. Bought of C. V. Bogart, 20 bush. Potatoes, at 26c. , 
 35 doz. Eggs, at 10c. : 
 
 13. Sold E. B. Portland, 10 lbs. Butter, at 30c ; 6 lbs. 
 Oyster Biscuits, at 10c. ; 4 lbs. Soda Bisviuits, at 
 10c. ; 2 boxes Cinnamon, at 12Jc. 
 
 16. Sold S. W. Houston, 1 paper Starch, 5 lbs., at 8c. ; 
 10 bars Soap, at I5c. ; 8 lbs. Butter, at 30c. 
 
 17. Received from E. B. Portland, Cash on account, $25. 
 
 18. Sold R G. Br<nvn, 10 lbs. Sugar, at 10c. ; 4 lbs. Im- 
 perial Tea, at $1 ; o lbs. Coflfee, at 25c ; 3 lbs. 
 Chocolate, at 40c. 
 
 19. Sold C. V. Bogart, 20 lbs. Sugar, at 10c. ; 2 lbs. Coffee, 
 at 25c. ; 4 lbs. Oatmeal, at lOc. ; I bag Hominy, 
 50c. ; 1 paper Cc^rn Starch, 15c. ; 3 oz. Indigo, at 
 15c. ; 2 bars Soap, at 15c. 
 
 22. Bought of R G. Brown, 10 bbls. Flour, at $8 ; 3 bags 
 Oatmeal, at $1.25. 
 
 23. Paid S. W. Houston, Cash on account, $25. 
 
 24. Eeceived from C. V. Bogart, Cash in full of account, 
 $3.75. 
 
 Resources not shown on Ledtjer : — Cash in hand, $1053.75 j 
 Merchandise, as per iuveutury, $2350.65 ; Note against L. R. 
 Lazier for $400. 
 
 The resna nf this Set, properly worked, is: — Net Gain, 
 $85.05 ; Net Worth at closing,', $.3885.05. 
 
 58 
 
 (i 
 
 (* 
 
 (( 
 
 u 
 
 u 
 
 II 
 
 u 
 
 (I 
 
 (( 
 
 (( 
 
i BOOK-KEEPING. 
 
 QUESTIONS FOR REVIEW. 
 
 What books are used in Set II. ? In which book are the tranaaotioui 
 first entered f To what book are they afterwards transferred ? Under 
 what oircumstances is this mode preferable to Set I. ? Why ? What 
 should the record of the Day Book state ? What transactions are re- 
 corded in the Day Book ? When is a person debited in the Day Book ? 
 When credited ? In what way may the entry of purchaaes be shortened 
 in tie Day Book ? Why is this allowable ? Why may not sales be 
 abhreviated in the same way ? What is the object of the rulings be- 
 tween the entries in the Day Book? What is meant by posting? 
 Wherein does the Ledger of Set II differ from that of Set I. ? I^r 
 what purpose is the pi^e of the Day Book from which an entry is taken 
 placed in the account in the Ledger ? After an entry ia posted what 
 should be written in the Day Book ? Why ? When there are several 
 items, what word is used to save space? What should be done as soon 
 as all the entries are posted ? What account should be left open until 
 after the gains or losses have been ascertained » What does the double 
 line under an account >i ^icate ? What is done with accoiints that have 
 the debit and credit siv. >a equal ? How are accounts cloned that have 
 balances? 
 
 The 'lowing questions may be answered from the books and state- 
 ments 
 
 Which persons on the Ledger have balances owing by them ? What 
 ie the total amount due from other persons? Which persons have 
 balances owing to them ? What is the total amount you owe to other 
 persons ? What is the total amount of your resources, and of what do 
 they consist ? What is the amount of your liabilities, and of what do 
 they consist ? What is your present net capital ? How ascertained f 
 How much did you invest at starting ? How much was withdrawn from 
 the business ? What was the net investment during the continuation 
 of the business ? How are the gains or losses ascertained ? How much 
 has been gained or lost ? What entry should be made after the gains 
 have been ascertained ? How is the proprietor's account now closed ? 
 What does the balance of his account show ? If the result of the busi- 
 ness should be a loss, and the debit side th« larger, what would th« 
 balance show ? 
 
 I'l 
 
 ;, I, 
 
 i^-'^ 
 
 % 
 
 l'--;:i''i 
 
 m 
 
 ■■■, ' 
 
 
 1 4 
 
 SET III.— SINGLE ENTP.Y. 
 
 The busiuess contained in this set is more extensive than 
 that of the preceding, and therefore two additional books, the 
 Cash Book and Bill Book, have been introduced as auxiliary to 
 the Day Book and Ledger. The business is carried on by two 
 
 59 
 
11 : 
 
 BOOK-KEEPING. . 
 
 / ■; \ ■ ' 
 
 f ' . . ■ ■ 
 
 partners during a period of two mouths, each month represent- 
 ing, so far as the closing of the books and tlie determining ol 
 the profits are concerned, a year's business. 
 
 In business, settlements with individuals who deal with the 
 firm should be made as often as practicable, but the statements 
 of profits are not usually made out oftener than once in six 
 months, and in most business houses but once a year. 
 
 ..)■ 
 
 DAY BOOK. 
 
 t i '. 
 
 ;i- 
 
 HI 
 
 \ r 
 
 The Day Book of this set is kept the same as that of the 
 preceding set, except that the left hand money column is 
 used for the amounts of those accounts which are debited, 
 and the right hand or outer column for the amounts of 
 those accounts which J are credited. By this arrangement a 
 proof of the correctness of the posting is obtained. 
 As all the amounts in the debit column are posted to the debit 
 sitie of the Ledger, and all the amounts in the credit column 
 are posted to the credit side of the Ledger, it follows, if the 
 postings are correct, that the difference between the totals of 
 the two sides of the Ledger will agree with the difference be- 
 tween the footings of the two columns in the Day Book, and 
 thus we have a proof of our posting. 
 
 This proof is a very valuable feature, as by its means the 
 omission to post any entry is easily and certainly detected. A 
 post mark is not sufficient ; it shows that an entry has been 
 posted, but not that it has been posted correctly. 
 
 !', 
 
 CASH BOOK. 
 
 ilii 
 
 '■■; I 
 
 This book, here introduced for the first time, affords, in con- 
 nection with the Day Book, a complete history of all the busi- 
 ness transacted. 
 
 There are various ways of keeping the Cash Book, but the 
 following form is, perhaps, as simple as any, and as little liable 
 to mistakes, for persons whose cash transactions are not very 
 numerous, and who are not scientific accountants. 
 
 It contains two columns for dollars and cents.* 
 
 The amount of cash on hand at the commencement of busi- 
 ness, and all money received, from any source .hatever, nuist 
 
 • The pupil will observe that, in speaking of the money columns, we de- 
 signate the space for dollars and the space for cents, united, as out one 
 o^uum. 
 
 I ^ 
 
I 
 
 the 
 A 
 been 
 
 con- 
 busi- 
 
 busi- 
 must 
 
 we de- 
 lut one 
 
 I 
 
 BOOK-KEEPING. 
 
 be entered in this book " To," (describing for what,) and the 
 amount be extended into the left hand dollar and cent column, 
 which is called the debit column ; and whenever money is 
 paid out for any purpose wliatever, it must be entered in this 
 book "By," (telling what for,) and the amount extended into 
 the right hand dollar and cent column, called the credit column. 
 Thus, if the account is kept correctly, the difference between 
 these two columns will show at all times the balance of casta 
 in hand, and will agree with the actual amount of money 
 found in possession by counting. Any discrepancy must arise 
 from error, which must be sought out and rectified before the 
 account is balanced. The credit column can never be the 
 larger, since it is impossible to pay out more money than you 
 receive. 
 
 The Cash Book should be balanced at the end of each week 
 (or daily, when much business is done), by entering the balance 
 of cash on hand in the credit column, in red ink, to distinguish 
 it from sums paid away. When the Cash Book is not balanced 
 daily, an informal balance should be made, and the result 
 compared with the cash in hand. After footing the columns 
 and drawing the lines, bring the balance down, in black ink, 
 entering it in the debit column. The lines should be ruled 
 exactly as in form. They serve to keep the new account dis- 
 tinctly separated from the old — a matter of greater importance 
 than young book-keepers generally iraagine. It adds greatly 
 to the neat appearance of your book to begin the words " To " 
 and " By " all upon a perpendicular line. 
 
 BILL BOOK. 
 
 When several notes are given or received each month, it has 
 been found convenient to enter a minute description of them in 
 a book prepared specially for that purpose. This enables any 
 particulars concerning them to be seen at a" glance, and an ex- 
 amination of the book will show what notes become due on 
 any day, and thus timely preparation may be made for their 
 collection or payment. Notes have been issued, and for want 
 of such a record their existence has been forgotten, until great 
 inconvenience, and even loss, has been the result. All neces- 
 sary explanations are made hy the headings of the different 
 I'.olunms. 
 
 The Invoice Book is not given, as it is considered too sim- 
 ple to require explanation. In some houses the invoices of 
 
 61 
 
 I! 
 
 i 
 
 
 i .1 
 
 
 
 I. ,5. 
 
iH V 
 
 r? 
 
 BOOK-KfiEPINO. 
 
 goods purchased are copied into this book ; others paste th« 
 invoices in a large book for the purpose; while others keep th«) 
 invoices on file until the end of the month, and then fold there 
 neatly, and after writing the name of the person from whom 
 purchased, the date and the amount on the back of each invoice, 
 tie them up in monthly packages. 
 
 The Inventory Book is used for taking an account of the 
 value of property owned by you, at any time, in order that you 
 may use i in estimating your net capital, net gains, &c. The 
 quantity and estimated value of each article are given. The 
 list may fill several pages ; but as it is very simple, only a few 
 items are enumerated. v 
 
 INSTRUCTIONS FOR WRITING UP SET III. 
 
 . - ■ . • II ■ )1 ,' 
 
 An account is kept with each partner separately, and he is 
 credited with what he invests in the business, and is charged 
 with all debts assumed by the firm for him, and all sums which 
 he withdraws. He is credited, when the books are closed, 
 with his share of the gains. 
 
 The books are opened by making the entries in the Day 
 Book to the debit and credit of each partner, and to the debit 
 of A. R, Simcoe and Peter Grey, and to the credit of R. J. 
 Bruce, Edward Huron and J. H. Lambton, whose accounts 
 have been assumed by the firm ; entries are also made in the 
 Cash Book of Che cash invested, and in the Bill Book of Notei 
 Receivable on hand and of Notes Payable outstanding. The list 
 or inventory of merchandise, material, tools, 4c., is not given, 
 but in actual Ijusiness it should be made out and carefully 
 preserved. 
 
 Care should be taken to place each amount in its proper 
 colimin in the Day Book, in order to avoid errors and trouble 
 in balancing. After the entries are made in the different books 
 for April 1st, then enter the transaction tliat occurs on the 3rd, 
 and thus proceed with each succeeding date, eriteringthe trans- 
 actions in the Day Book, Cash Book and Bill Book, as may be 
 required, in the date and ordor of their occurrence. This will 
 give a much better knowletlge of the trunsactions than if only 
 one book is written up at a time. 
 
 Be careful to inak«^ all the exteiisit)ns aiid additions correctly, 
 and also to count the time when the notes mature, before enter 
 
i BOOK-KEEPING. 
 
 insj them in tlu^ Cill Rook. The three days of grace are always 
 iiichided in finding; the date when a note falls due. 
 
 Open the partners* accounts first in the Ledger, and let all 
 the other acc»)unt8 follow thera in regular order. Not more 
 than three ticconnis should be opened on a page. The posting 
 is tlie same as in Set 11. 
 
 When the posting is finished, add the columns in the Day 
 Book, if not already added, and carry the footings of the pages 
 forward in the manner shown, until the end of the month. 
 Also make out the statements as shown at the end of the 
 month of April. Compare the difference between the totals of 
 the debit and credit balances of the Ledger, with the difference ' 
 between the totals of the debit and credit columns of the Day 
 Book ; and if they are not alike, diligently search for the error 
 un|iil it is found, and then make the necessary corrt^ctions. 
 
 After the postings have been found to be correct, make out 
 the statement for April, looking to your own work for the 
 balances of the Ledger, for the amount of cash on hand, and 
 for the notes receivable and payable. The inventory will be 
 found at the end of the Day Book. The gains are ascertained 
 and entered as in the preceding set. 
 
 Before commencing the second month, add the gains of the 
 first month to the difference between the debit and credit 
 columns of the Day Book, and place the sum in the credit 
 column of the Day Book for May, in order to make the excess 
 of credit on commencing this moilth equal to that of the 
 Ledger. 
 
 (^ A statement showing the result of the whole Set ia 
 given at the end of the month of May. The pupil is obliged 
 to depend entirely upon himself in entering the transactions of 
 this month. The work when properly performed will agree 
 with the results given in statement. 
 
 
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 The following items of Cash received and paid at 
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BOOK-KEEPING. 
 
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BOOK-KEEPINQ. 
 
 book:— SET III. 
 
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 > « ' BOOK-KEEPING. • 
 
 ' ■ ^' ■. ^' "^^ ' ' '.:• 
 
 INDEX TO THE LEDGER. ' ^^ 
 
 This iff a small book, or space ruled in the Account Book, 
 in which are arranged, in alphabetical order, the names of all 
 accounts in the Ledger, together with the pages on which such 
 accounts are entered. 
 
 The object of keeping it is to enable us to refer readily to 
 accounts in the Ledger. Whenever we open an account in the 
 Ledger, we enter the name of the account and the number of 
 the page in the Index. If an account should be transferred to 
 another page, a red line should be ruled through the figures of 
 the old page, and the number of the new page placed in the 
 Index. 
 
 In real business the Index generally has a page allotted to 
 each letter. The following illustration will be sufficient to 
 explain how it is kept :-i- 
 
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 BOOK-KEEPING. 
 
 STATEMP:NT.— SET HI. 
 
 PROOF OF POSTING. 
 
 ^€(/aei Ma/uncf^d, ^/lil/ 3fiii, ^^W. 
 
 Personal Debtors, 
 
 
 PcrHonal Creditors. 
 
 $■7 
 
 . Jr. %S>uc« 
 
 /'//j^i; 
 
 7J\ 
 
 (^Tota/ %i€€iiU 
 
 MeiouiceA ^^taMli€A,^/>M/30, ^^^^. 
 
 SrnUcna/ajcA ^leceiit. 
 
 VP€Un en Aana a6 /tei 
 
 ^€uA ^oo4 - 6030 30 
 
 ^iy - - S^OO 00 
 
 ^aUiuUd ane/ '^^ 
 
 AntA/ie(/Wol4 - 2200 00 
 
 Sco^ ^ <^nt^/!inteynU J^-OO CO 
 
 ^4oie ^ixiuied - ./JO 30 
 
 /m ^.SB. - ///?<$< 00 
 
 Jzf-aviwted. 
 ^fieidona/ €t cd ^«y- 
 
 uMej A{>nt Jzecmel !P 2S0 '73 
 
 ad Aei ^.^. - fOO 00 
 
 ^cia/ .Stia^/iUfd S-f^30 'J3 
 
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 m. 
 
 
 82 
 
BOOK-KEEPING. 
 
 •'i "I 
 
 
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 nunl - - /i520 00 
 
 
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 ^///; 
 
 ^cu'n '^'/oj^ 33 
 
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 SI\*Ae^iQAU%a/iUa/$6-/3'/ /^ 
 
 
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 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
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 Sciences 
 
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 33 WBST MAIN STMIT 
 
 WnSTIR.N.Y. MSM 
 
 (716)l72-4»03 
 
 
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BOOK-KEEPING. 
 
 V. 
 
 Memoranda of Hastings <k Durham's business transac- > 
 
 TIONS DURING THE MONTH OF MaY, TO BE RECORDED AND 
 WORKED OUT SAME AS PRECEDING MONTH. 
 
 Igp" Before recording the transactions of this month enter 
 the difference between the debit and credit side of the Day 
 Book for the last month and the gain, added together, which 
 amount to $12208, in the credit column, as explained, before 
 commencing the Set. 
 
 1877. 
 May 1 
 
 (( 
 
 (( 
 
 « 
 
 (1 
 
 (( 
 
 ti 
 
 5. 
 
 8 
 
 C( 
 
 Bought of D. S. Elgin & Co., Bill of Lumber, amount- 
 ing to $120.50 ; Paints, Varnishes, &c., as per Bill. 
 $.30.40. 
 
 2. Sold T. K. Frontenac, 1 Eosewood Tete-a-tete, $40 ; 1 
 
 Gothic Mahogany Bedstead, $18.50 ; 6 Carved Ma 
 hogany Chairs, at $4.50. Cash sales this day, $75.40. 
 
 3. Sold J. H. Lambton, 1 Mahogany Bureau, $16 ; 1 
 
 Black Walnut Centre Table, $15 ; 1 pair Ottomans, 
 $10; 1 Stuffed xiack Chair, B. VV., $12,75. Cash 
 sales this day, $120. 
 
 4. Sold T. M. Welland, 1 Double-leaf Secretary, $30 ; 8 
 
 Kitchen Chairs, at 50c. Paid our Note favor of A. 
 Ging, $350. J. H. Lambton has returned the 
 Bureau bought on the 3rd inst., it being too large 
 for room, for which we give him credit, $16. Cash 
 sales this day, $100.40. 
 
 \. K. Simc* e paid on account Cash, $125. Sold 
 Edward Huron, 3 Cherry Wash-stands, at $3 ; 2 
 Looking glasses, at $4.50. Paid for Cleaning Store- 
 room, $3. Cash sales this day, $45.25. 
 6. Sold Peter Grey, 1 Hat-staiid, Mahogany, $12.50. 
 Paid Men's Wages for week, $40.50. Cash sales, 
 $75.35. 
 Bought from George Young & Co., on our Note at 3 
 months, Merchandise, as per Bill, $450.50. 
 
 Note. — As no personal account is affected by thi.s 
 transaction, it is merely entered in the Bill Book. 
 
 Sold R. J. Bruce, 3 Mahogany Arm Chairs, at $4.25. 
 Cash sales this day, $137.40. Peter Cooper paid his 
 Note of April 4t'h, $20. 
 
 84 
 
M 
 
 8 
 
 the 
 
 large 
 
 Cash 
 
 Sold 
 ^3; 2 
 Jtore- 
 
 .2.50. 
 sales. 
 
 at 3 
 
 this 
 look. 
 
 K.25. 
 Id hie 
 
 {( 
 
 (( 
 
 (( 
 
 « 
 
 BOOK-KEEPING. 
 1867. 
 
 May 10. Sold D. S. Elgin, 1 Hall Stand, $5.50 ; 6 Parlor Chairs, 
 at $4.25 ; 1 Piano Stool, $10. Received from A. R. 
 Simcoe his Note at 1 month for $50. Paid for Post- 
 age Stamps, $1.50. Cash sales to-day, $\70.lo. 
 
 11. SoW Peter Grey, 10 Stuffed Arm Chairs, at $10 each ; 
 12 Carved R. W. Centre Tables, at $30 each. Re 
 ceived his Note at 2 mouths for $200. dash sales, 
 $170.60. 
 
 12. Received from A. Simcoe Cash for his Note of April 
 9th, $28. 
 
 13. Received from A. R. Simcoe, Note against John Long, 
 dated the 4th inst., at 3 months, for $100. Sold T. 
 K.Fronteuac, 1 complete Parlor Set, $150. Received 
 in part payment Wm. Wilson's Noti , dated Jan. 
 14th, at 4 months, for $100. Received from F. M. 
 Welland, on account, $25. Cash sales this day, 
 $134.20.. Paid Workmen's Wages in cash, $56.50. 
 
 15. Sold A. R. Simcoe, 4 doz. Cane-bottom Chairs, at $14 ; 
 
 6 doz. Carved Mahogany at, $25. Received in part 
 
 payment his Note at 1 month for $100. Cash sales 
 
 to-day, $196.70. 
 17. Sold R. J. Bruce, 1 Corner Stand, $12.50 ; 1 French 
 
 Bedstead, B. W., $18.50. Received in part pay- 
 ment cash $20. Wm. Wilson paid his Note due 
 
 to-day, $100. Cash saki $215. 
 
 19. Bon owed from Edward Huron, Cash $5 account, $6, 
 Bought of A. E. Long & Co., Merchandise, as per 
 Bill, $425, for which we gave our Note at 1 month. 
 Cash sales, $67.40. 
 
 20. Sold D. S. Elgin & Co., Extension Dining Table, $45, 
 and received in part payment Cash, $25. Paid 
 Workmen cash, $64.70. C-ish sales, $110.40. 
 
 22. Received from F. M. Welland, an Order on R. J. 
 Bruce for $20, which Mr. Bruce accepts, and places 
 to our credit. 
 
 Note. — Credit F. M. Welland with the amount of 
 Order, as you received it on his account, and debit 
 Mr. Bruce. 
 
 *'* Received from Edward Huron, Cash, $5. Paid for 
 eijndry expenses — Postage, $2.25 ; Advertising, 
 $15.60 ; Carting and Piling Lumber, $4. Cash 
 taks, $64.70. 
 
 ft5 
 
 *( 
 
 (t 
 
 « 
 
 «« 
 
 .^1 I 
 
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I'M 
 
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 (I 
 
 BOOK-KEEPING. 
 1877. 
 May 24. Sold F. M. Welland, 3 Patent Pivot Chairs, at $S 
 Received ■, in part payment, Note against R. Camp, 
 <iated Feb. 4tb, 1877, at 4 months, for $15. Cash 
 sales this day, $137.20. 
 25. R. J. Bruce returned the French Bedstead, B. W., 
 $18.50, purchased on the 17th inst, for which we 
 give him credit ; and sold him instead, 1 Sofa Bed- 
 stead, Patent, $40. Cash sales, $20. 
 Gave E. Huron our Note at 3 mokiths for $17, in set- 
 tlement of account. Gave . M. Welland, 
 
 an Order on T. K. Frontenac for $6.90. 
 Note. — This transaction necessitates two entries. 
 Charge Welland with the amount of the Order, 
 and credit Frontenac. 
 29. Gave D. S. Elgin our Note at 1 month for $50. 
 Bought of Jones, Smith & Co., Merchandise, as per 
 Bill, $500. ^ Gave in payment, Peter Grey's Note oi 
 May 11th, for $200, and our own Note at 3 months 
 for the balance, $300. j 
 
 M 
 
 26. 
 
 M 
 
 Inventory of effects on hand. May 31st, 1877. 
 
 Merchandise, as per Inventory 
 Materials and Unfinished Work 
 Tools and Implements • 
 Store Fixtures • • . 
 
 - $5100 00 
 
 - 3500 00 
 
 - 575 00 
 . 160 50 
 
 8S 
 
00 
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 88 
 
BOOK-KEEPING. 
 
 QUESTIONS FOR REVIEWi 
 
 What additional books are used in this Set f How may a proof oi 
 correctness be obtained ? How often are books closed in most Dasinesa 
 houses ? What is the difference between the Day Book of this Set and that 
 of Set II.? What advantage is there in placing debits in one column and 
 credits in another ? Does a check mark Rhow that an entry has been cor- 
 rectly posted ? What do the Day Book and Cash Book give a complete 
 history of ? What is the Cash Book a check o gainst ? What is the left 
 column used for, and what the right ? What does the difl'orcuce between 
 the footings of the two sides show ? What exists if the difference does 
 not agree with the cash on hand ? How often is the Cash Book balanced 
 in this Set? W' at is the use of the liill Book ? What advantage is it 
 to know when n Jtes mature ? How are invoices entered or kept ? What 
 does the Inventory Book contain ? How and when should names be en- 
 tered in the Index ? How are the books of this Set opened ? What 
 advantage is gained by entering the transactions in all the books for 
 each day before taking any entry of the succeeding day ? What accounts 
 are first opened in the Ledger ? How is the proof of posting obtained ? 
 Wnat is done ivnmediately after posting ? What should be done before 
 commencing the second month, in order to make the excess of credit in 
 the Day Book equal to that of the Ledger ? 
 
 The following questions to be answered from the Ledger and State- 
 ments : — 
 
 What persons owe the Firm at the end of the first month, and how 
 much ? Whom do the Firm owe, and iinw much ? What is the differ- 
 ence between the total debit and credit balances of the Ledger? Give 
 a list of the resources of the Firm. Of what do the liabilities couFist ? 
 What is the net capital, and how fonnd ? How much did the Firm 
 invest? ^Vhat is the Firm's net gain, and how found ? What is each 
 partner's net capital at closing ? How found ? What is placed to *he 
 credit of each partner before closing his account? What is the differ- 
 ence between the debit and credit sides of the Ledger at the end of the 
 second month ? Of what do the assets and liabilities consist ? What is 
 the net capital of the Firm ? What is the Firm's net gain ? What 
 is each partner's net capital at the close of this month ? 
 
 •■»! 
 
 i 
 
 t 
 
 
 SINGLE ENTRY NOT A PERFECT SYSTEM OF 
 
 BUSINESS RECORD. 
 
 1-^ 
 
 The pupil will do well to read again the introductory chap- 
 ters. From the general view there given of the information 
 which a set of accounts should furnish, he will be ab)e to form 
 an opinion as to how far Single Entry accomplishes it. He 
 will remember that a complote set of accounts should both de- 
 fine the present Financial State of the Business, by 
 showing the Assets and Liabilities, and also tell us how 
 *his condition has been brought about, by showing 
 
 89 
 
BOOK-KEEPINO. 
 
 the Original Capitalf and the various subsequent Gains and 
 Losses. 
 
 If lie will open to the example of connected accounts (pages 
 19 to 29), he will see that Single Entry, so far as the Ledgc^r 
 is concerned, does not meet even the first requirement. For 
 (leaving out of consideration the proprietor's Capital Account) 
 it shows only the debts owing to us and by us on personal 
 account ; that is, debts owing to us for which we have not re- 
 ceived others' notes, and debts owing by us for which we have 
 not given our notes. Tliis, however, is compensated for in Set 
 III., by introducing the Cash Book and Bill Book ; so that, 
 taking them in connection with the Single Entiy Ledger, we 
 have the material for linding all the Assets and Liabilities, ex- 
 cept the asset of unsold merchandise, which, in most cases, 
 will have to be found in either system by actual taking of 
 stock. 
 
 But in reference to, the second requirement, the only element 
 he has is the Original Capital, as shown in the proprietor's 
 Capital A count ; he has nothing to show how much has been 
 gained or lost on sales, and what incidental expenses have bc(!ii 
 incurred. If be had also a statement of the cost of the uoods 
 purcljiised and the proceeds from sales, and one for the expens(!S, 
 he would have all the data necessary for meeting the second 
 requirement. He would, in fact, then have all the data which 
 Double Entry supplies, although not contained between the 
 two backs of the same book — the Ledger. His Cash Book 
 corresponds to his Cash Account in Ledger ; his Bill Book to 
 his Bills Receivable and Bills Payable accounts ; his statement, 
 of the cost and proceeds of merchandise to Merchandise Ac- 
 count; and his statement of incidental expenses to Expeusr 
 Account. 
 
 He will have no difficulty in seeing that if he has the means 
 of ascertaining the present state of affairs by two methods so 
 nearly independent of each other as these are, he possesses 
 strong evidence of the accuracy of his books. Nor will he be 
 slow to perceive the advantage arising from being able to coi»i- 
 pare his gross profits with his expenses, so that, if need be, he 
 may either increase the former, or curtail the latter. Now, 
 Double Entrj'^ does tliis in so syi^tematic a manner, and, under 
 proper arrangements, with so little labor additional to that 
 required in Set HI., tliat we may well wondtir that any biisiness 
 man siiould begrudge that little extra labor, in view of the 
 advantages lie. will therel)y secure. 
 
 90 
 
BOOK-KEEPING. 
 
 We are now about to introduce the pupil to the more 
 perfect system of Book-keeping by Double Entry. We 
 trust he will still continue to keep the end he is aiming at in 
 view. If he does so, and pursues his work in a philosophic 
 spirit, we have no doubt he will be able to endorse the words 
 of Jackson, an old author of a very excellent work on this sub- 
 ject : — '' It is a science whose principles are so simple and solid ; 
 its conclusions so natural, evident and certain ; and the sym- 
 metry of its several parts so complete and harmonious, that, 
 the very speculaiion is no less pleasing than the practice is 
 proJUabli," , 
 
 1 
 
 n 
 
 t J 
 
 CHAPTER VIL 
 
 BUSINESS FORMS. 
 
 An acquaintance with the forms of business papers in gene- 
 ral use is indispensable to every one who would master the 
 Science of Accounts. Not only should their nature and use be 
 fully understood, but the ability to make them out readily and 
 correctly should be acquired. For this reason the pupil should 
 study and copy the following Forms, which are among those 
 most used, until he can write them out readily without referring 
 to the book. 
 
 t . 
 
 M 
 
 :*ka 
 
 'hi 
 
 RECEIPTS. 
 
 A Receipt is an acknowledgment in writing of having received a 
 certain sum of money, or other valuable consideration. 
 
 When a payment has been made, a receipt should be taken as 
 proof of the payment. It may not in all cases be necessary, but 
 when important interests are involved, nothing should be left to 
 uncertainty, if it can so easily be avoided. A Receipt often saves 
 misunderstandings and loss of friends, as well as loss of money. 
 Receipts should be carefully preserved, as many instances have 
 occurred in which claims have been presented after they were paid. 
 When not written in a book specially prepared for the purpose, 
 thoy should be kept in a place of security, so that they may be 
 ruadily produced if needed. 
 
 91 
 
I II 
 
 *■. 
 
 ' * 
 
 ' ( 
 
 ^y BOOK-KEEPING. 
 
 BBCSIPT FOU PAYMENT ON AOOOUMT. 
 
 I 
 
 Toronto, Ont., Jan. 1st, 1877. 
 Received from W. H. Yourex Fifty Dollars on account. 
 $60. E. SCARLETT. 
 
 BXOEIPT IN PULL OP ACCOUNT. 
 
 Belleville, Jan. 1st, 1877. 
 Received from W. R. Ross Seventy-five Dollars in full of account 
 to date. 
 175. CEAS. ADIN. 
 
 BECBIFT IN FULL OP ALL DEMANDS. 
 
 Napanee, Jan. Ist, 1877. 
 Received from Henry Bros. On« Hundred and Fifty Dollars in full 
 of all demands. | 
 
 $150. J. A. FBA8EB. 
 
 RECEIPT VOR A PARTICULAR BILL. 
 
 Kingston, Deo. Ist, 1870. 
 Received from Beatty & Wallbridge Five Hundred Dollars, in 
 payment for a bill of groceries of this date. 
 
 J. CARBUTHEliS. 
 
 RBOEIPT FOR BORROWED MONEY (oR BORROWED MONEY DUB BILL). 
 
 Picton, Jan. 1st, 1877. 
 Borrowed and received from John S. Miller Four Hundred and 
 Fifty Dollars, which I promise to pay on demand, with interest. 
 $450. B. BOBBOW. 
 
 RECEIPT FOR SERVICES. 
 
 ' ' Hamilton, Dec. 1st, 1876. 
 
 Received from Geo. Wallbridge Forty-seven Dollars, in full for 
 services to date. 
 147. ' 0. PAYMAN. 
 
 BEOBIPT FOR A NOTE. 
 
 London, Dec. 4th, 1876. 
 Received from J. B. Ashley his note of tliia date, at four months, 
 for Five Hundred Dollars, in full of account rendered to Ist inst. 
 $600. G. a HOLTON <fc CO 
 
'AN. 
 
 J . 
 
 BOOK-KEEPING. 
 KBOIBirT FOR KENT. 
 
 r 
 
 Montreal, Dec. Ist, 1876. 
 
 lieceived from P. C West & Co., One Hiuidi-ud and Twenty Del- 
 lars, in full for one quarter's rent of store No. 96 McGill Street ; 
 due 20th ult. 
 
 •120. E. HARBISON. 
 
 &EOEIPT won INTERBST DUB ON MORTOAOB. 
 
 Toronto, Dec. 5th, 1876. 
 Received from Robert Smith Twenty- nine ^^mt Dollars, in full f(ir 
 six months' interest due this day, on his mortgage to me, bearing 
 date Dec. 6th, 1873, for Five Hundred and Ninety Dollars. 
 
 8. G. BEATTY. 
 
 $29 xryg. 
 
 KROKIPT FOU PAYMBNT BY THE HAND OF A THIBD PABTT. 
 
 Halifax, Jan. 1st, 1877. 
 Received from John Jones, by the hand of R. Howe, Fifty Dol- 
 lars, in full of hia account. 
 
 WM. B. DEAN. 
 
 INDOR.SEMKNT OF A PARTIAL PAYMENT ON A NOTE. 
 
 Bowmanville, Jan. Ist, 1877. 
 ■Received on account of the within note, Forty-five Dollars. 
 $45. J. 8. MLLLEB. 
 
 AGENT S RECEIPT. 
 
 Brantford, Sept. 1st, 1876. 
 Received from M. L. Perkins, Two Hundred Dollars, to apply on 
 his account with O. P. Stanwood. 
 $200. A. L. HOWABDy Agent. 
 
 BILLS AND INVOICES. 
 
 A Bill of Goods is a written description of the quantity and price 
 of goods sold, with the time or date of the transaction, and the 
 names of the purchaser and seller. 
 
 An Invoice is a full account of merchandise, in which the marks, 
 numbers, contents, and value of each package, together with all 
 charges, are described. 
 
 When anyrhing is purchased of another, or is to be charged in 
 account, it is well to take :• Bill for it. The Bill will be a reminder 
 to make the proper entry in the books concerning it, and will also 
 serve as a voucher for items, prices, &c. Even when cash is paid, 
 the Bill is frequently needed for reference. 
 
 Invoices are usually pasted in a book, or neatly folded and 
 marked on the back with the name of the person from whom 
 bought, the date and the amount, and then put up in monthly 
 packages for safe koepincr. 
 
 93 
 
 : ; 
 r 
 
 i" id 
 
 m 
 
 • id 
 
 li 
 
 
 
 I ■■..in. ■ 
 
 ■ : I 
 
 'i| 
 
 ': I 
 
t 1 <l 
 
 BOOK-KEEPING. 
 ■,> - 
 
 1 '• ■ 
 
 ^ ^ 1. BILL NOT BBORIPTBD. 
 
 1 ToiiONTO, January Ist, 1877. 
 
 Mr. CHAllLBS D. PUTNAM, 
 
 Bought of Wm. L. Brown & Co. 
 
 5 yda. Black Silk 
 
 4 " " Broadcloth 
 20 '* Factory Cotton 
 15 " Canton Flannel 
 
 ut$2 00 
 
 " 4 00 
 
 10 
 
 •• 26 
 
 flO 
 
 16 
 
 2 
 
 3 
 
 $31 
 
 00 
 00 
 00 
 76 
 
 76 
 
 Mr. W. A. ROBLIN, 
 
 2. BILL BKOBIPTBD. 
 
 V Cornwall, Nov. l4t, 1876. 
 
 To CoNOBB Bro8. Dr. 
 
 To 10 yds. Cambric 
 " 20 ** Gingham 
 ♦' 5 " Broadcloth 
 
 I " 2 do2. Spools Thread 
 
 ai $0 15 
 " 30 
 " 4 00 
 " 50 
 
 $1 
 
 6 
 
 20 
 
 50 
 00 
 00 
 
 100 
 
 $2850 
 
 Iteeeived payment, 
 
 CONGER BR08. 
 
 Should the above Bill be receipted by a clerk, his own name 
 should be signed under that of the firm, with the word *' per " 
 placed before it. 
 
 3. ITBMS OF AN ACCOUNT. 
 
 Mr. J. A. MOORE, 
 
 To Robertson & Henrt. 
 
 Dr. 
 
 1876. 
 July 
 
 Aug. 
 
 Sep. 
 Oct. 
 
 1 
 
 10 
 
 4 
 
 To 4 yds. Broadcloth 
 ** 3 " Can. Tweed 
 " 1 Vest (Broadcloth) 
 
 By Cash 
 
 Cr. 
 
 6 " Order on A. B. Clark 
 Balance due 
 
 Settled hy Note, 
 
 ROBERTSON 
 04 
 
 at $5 00 
 " 1 60 
 
 $20 
 4 
 5 
 
 00 
 50 
 50 
 
 $20 00 
 6 00! 
 
 $30 
 25 
 
 00 
 00 
 
 
 $5 
 
 00 
 
 <h HENRY. 
 
 15 
 
 
 9 
 
 10 
 
 la 
 
 15 
 
.000 
 
 L600 
 
 200 
 
 375 
 
 BOOK-KEEPING. 
 4. MONTHLY STATCMENT. 
 
 t 
 
 Toronto, Jan. Itt, 1877. 
 
 MeMrs. SMITH A JONES, 
 
 To Sinclair, Jack & Co. 
 
 Dk. 
 
 1876. 
 
 Nov. 
 «i 
 
 1 
 
 8 
 28 
 
 To Mdae, 
 
 as per Bill rendered at 3 inos. 
 (( (( 4 '' 
 
 «• " 30 days 
 
 i 
 $ 
 
 1 
 $100120 
 500 00 
 40000 
 
 100020 
 
 i(TT 
 
 $1 
 
 6 
 20 
 
 50 
 00 
 00 
 100 
 
 name 
 " per " 
 
 Dr. 
 
 $2000 
 450 
 5|50 
 
 $30JOO 
 25 
 
 lY. 
 
 mVOlCBS. 
 
 1. DOM18TI0 INVOIOll. 
 
 Sales A. 
 FoUo 326. 
 
 Sold by J. WUton. Montreal, Oct. 28th, 1876. 
 
 Messrs. JONES & BROWN, 
 
 Belleville, Ont. 
 
 Bought of Sinclair, Jack & Co., 
 Forwarded — G.T.R. Importers and Wholesale Dealers in Groceries. 
 (Terms — Note at 4 'mos.) 
 
 1 s 
 
 10 
 13 
 
 15 
 
 5 Hlf. chests Tea (Y. H.), " S. J. & Co., 14" 
 
 78. 14. 78, 14, 74, 14, 800 
 7 5. IS, 6 0, 18, 7 
 
 4 i* Gunpowder, ** Chinaman ** 
 
 88, If. 9U, 15. 881 
 8 5. 7.8, 81, 15, «0 
 
 4iBags Coffee, Java, "A. B.'^ 
 
 128. 4 115. 4 404 
 181. 4 180, 4 18 
 
 " Laguyra, "C. T." 
 
 S98 
 118. 4 118. 4 8 
 
 5 Boxes (lOc.) Laundry Soap, 60 ea. 
 4 Dob. B. L. Brushes, ~^ s-|^ 
 
 Cartage ' 
 
 E. J. 
 
 96 
 
 299 
 
 72! 
 
 $215 
 
 28 
 
 271 
 
 80 
 
 216 
 
 80 
 
 478 
 
 24 
 
 114 
 
 72 
 
 220 
 
 18 
 
 39 
 
 60 
 
 300 
 
 07 
 
 21 
 
 00 
 
 
 
 11 
 
 00 
 
 I 
 
 
 
 25 
 
 
 
 $614 
 
 i"7 
 
 I • (''. ','.'1 
 
 k 
 
 5 i < >t«* t 
 
 >■;[■■'! 
 
 *. !i Vi 
 
 .r*! 
 
BOOK-KKEPING. 
 
 2. FORHION INVOICE. 
 
 Glasgow, 5th Aug., 1876. 
 Invoice of one Package, marked and numbered as per margin, 
 shipped as per Ilihiirnian 8. S. from Glasgow, for and on account of 
 Messrs. 0. C. Holton tfc Co., Toronto, Canada. 
 
 . :. Bought of ARTHUR & CO. 
 
 London Warehouse, Old 'Change. { G. C. H. & Co. No. 238. 
 Bradford Warehouse, Grange St. ) T. • 
 
 1 
 
 2 
 
 3 
 
 4 
 
 30 
 
 4 
 
 4 
 1 
 2 
 6 
 
 PcB Check Wincey 
 
 56i A.57i 
 ** " 56i, 67, 58, 59 
 " Shepherd 
 
 '* All Wool Tartan, 
 
 228 
 
 230i 
 
 50j 
 
 105| 
 
 6 
 
 71 
 
 •8 
 
 9^ 
 
 fi s. d. 
 5 14 
 
 7 8 lOi 
 1 13 8 
 4 3 6 
 
 £ 8. 
 
 d. 
 
 35 
 
 6 
 
 1 
 
 " OUn Serge, 
 
 ^'> 40> 4a> "^ 
 " Super " , 
 
 Box ana Cartage 
 
 237* 
 
 246 
 421 
 
 13| 
 
 IGf 
 16| 
 
 13 7 2 
 
 i 
 
 17 3 U 
 2 19 0" 
 16 6 
 
 1 
 1 
 
 
 
 
 £63 
 
 6 1 
 
 ORDERS. 
 
 An Order is a written request to deliver or pay goods or money 
 on account of the person signing the re -finest. The signature is a 
 voucher that the signer gave the order, and that he is responsible 
 for the payment of what is ordered. When an Order is received 
 and accepted, an entry should be made charging the signer ; and if 
 the Order is for the benefit of a third party, it is well to mention in 
 the entry the name of the person to whom tlie goods or money is 
 delivered. The Order should be kept until settlement is made, as 
 it is a confirmation of the charge. 
 
 ORDER FOR OcOPS. 
 
 Montreal, Jan. Ist, 1877. 
 Messrs. Page, West Sr, Co. 
 
 €tentlemen, — Please dolivor to A. L. Cathcart, or Bearer, Fifty- 
 seven Dollars, in goods from your store, and obargc to the account 
 of B. C, SANDmiS. 
 
 •67. 
 
 06 
 
it 
 
 BOOK-KEEPING. 
 
 OADElt FOR MONEY. 
 
 , Toronto, Jan. 2nd, 1877. 
 
 Mr. W. J. Gago. ' ' ' 
 
 Please pay to A. H. Jones, or Order, One Hundred and Ten 
 Dollars, and charge the same to my account. 
 
 $110. FETER COOPER 
 
 DUE BILLS. ' 
 
 A Due Bill is a written acknowledgment of a debt. When it is 
 
 intended that/a Due Bill should be paid at a defiuiie time in the 
 future, the date of payment should be specified. 
 
 I lit 
 
 DUE BILL FOR MONET. 
 
 Hamilton, Jan. 9th, 1877. 
 Due Samuel Clara, for value received. One Hundred Dollars. 
 $100. GEO. R. CAMP. 
 
 DUB BILL FOK. OOODS. 
 
 King8ti»n, Jan. 3rd, 1877. 
 
 Due Sanford Farmer, Twenty Dollars in goods from our store. 
 
 #20. . ROSS ik BAIN. 
 
 PROMISSORY NOTES. 
 
 A Promissory Note is a ivrittert, promise to yay umunidUionally, andy 
 at all events^ a specified sum of money. 
 
 When a Note is given or received, it should bo entered in the 
 person's account with whom the tr<*ins;ictiou occurs, in the sam- 
 manner as cash would be entered. The Note settles so much of the 
 account, and may change hands many times before it becomes dm , 
 and it must be paid to the holder. Should suit be brought because 
 not paid, it would be brought upon the note instead of upon the 
 account. 
 
 M 
 
 r \ 
 
 1 1877. 
 
 Fifty- 
 I account 
 \ERS. 
 
 FORMS OF NOTES. 
 
 NBOOTIABLE WITHOUT INDORSEMENT. 
 
 London, Oct. 8th, 1876. 
 $100. 
 
 Three months after date I promise to pay S. G. Beatty, or 
 Bearer, One Hundred Dollars, value received. 
 
 ^ H0MA8 WILLI AMS: 
 
 M 
 
 
 
1' ' 
 
 |:*' ',\'- 
 
 BOOK-KEEPING. 
 
 /r i 
 
 w 
 
 1^ NSOOTIABLS BY IND0R8EMBNT. 
 
 , Hamilton, Oct. 28th, 1876. 
 
 $100. I 
 
 Three monthi after date I promise to pay S. Glare, or Order, 
 One Hundred Dollars, yalue received. 
 
 THOMAS WILLIAMS. 
 
 NON-NEOOTIABLB. 
 
 I' 
 
 $100. 
 
 Toronto, Oct. 2!8th, 1876. 
 
 Three months after date I promise to pay George Dean One 
 Hundred Dollars, value received. 
 
 THOMAS WILLIAMS. 
 
 \ 
 
 rATABLB Oir DBMAND. 
 
 $100. 
 
 Kingston, 0«t. 28th, 1876. 
 
 On demand I promise to pay Messrs. Jones & Brown, or 
 Bearer, One Hundred Dollars, value received. , 
 
 THOMAS WILLIAMS 
 
 $100. 
 
 TAYASLM AT BANK. 
 
 Bradford, Nov. 6th, 1876. 
 
 Three months after date I promise to pay John Smith, or 
 Order, at the Bank of Commerce here. One Hundred Dollars, value 
 received. 
 
 PETER J. WILSON. 
 
 PATABLB AT BANK, WITH INTEREST. 
 
 Belleville, Oct. 28th, 1876. 
 $342.42. 
 
 Three months after date we promise to pay Messrs. East <ft 
 West, or Order, at the Merchants' Bank of Canada, here, Three 
 Hundred and Forty Dollars and Forty-two Cents, with Interest at 
 seven per cent, per annum, value received. 
 
 SMITH, JONJES Jb CO. 
 98 
 
BOOK-KEEPING. 
 JOINT NOTE. 
 
 $300. 
 
 Montreal, Jan. Ist, 1877. 
 
 Three months after date we jointly promise to pay R. Brown, 
 or Order, Three Hundred Dollars, value received. 
 
 K T. HAMLY. 
 . ^ J. G. SHJiliEY. 
 
 JOINT AND SEVERAL NOTE. 
 
 $210- 
 
 Port Hope, Oct. 28th, 1876. 
 
 Ninety days after date we jointly and severally promise to pay 
 Geo. Wallbridge, or Order, Two Hundred and Ten Dollars, value 
 received. 
 
 JOHN BROWN. I 
 
 WILLIAM BROWN. ] 
 
 DRAFTS. ' 
 
 A Draft is an unconditional written Order, addressed by A. B. 
 to C. D. , directing him to pay E. F. a certain sum of money. A. B. 
 is said to draw on C. D. in favor of E. F. A. B. is called the 
 Drawer, CD. the Drawee, and E. F. the Payee. A. B. may direct 
 the money to be paid to himself, in which case he is Payee as well 
 as Drawer. 
 
 To make it an obligation on the pari-, of C. D. he must accejjt it, 
 which is commonly done by writini{ the word " accepted " and his 
 name across the face of it. 
 
 Drafts may be made payable at a certain time after date, a cer- 
 tain time after sight, it sight, or on demand. It is usual, and 
 advisable, to pkesent foe acceptance all Drafts we receive, except 
 those payable on demand. With regard to those payable at a cer- 
 tain time after sigVit, and even those payable at sight when days of 
 grace are allowed, presentment for acceptance is absolutely necej.- 
 SAKY, in order to fix the date oi payment, for which punpose the date 
 of acceptaiice must also be writteji. 
 
 70RM 0» SIGHT DRAFT. 
 
 Cobourg. Jan. Ist. 1877 
 $75. .^ 
 
 At sight, pay Henry Campion, or Order, Seventy-iive Dollars 
 and charge to account of 
 
 JAMES JOHNSON. 
 To A. R Hammer, 
 
 Whitby, Ont. 
 
 m 
 
 !••! 
 
 
 J- !.l 
 
/:' 
 
 $200. 
 
 BOOK-KEEPING. 
 
 TIME DKAFT. ♦ 
 
 Toronto, Not. let, 1877. \ 
 
 Thirty days after date pay to the Order of W. R. Llngham, 
 
 Two Hundred Dollars, value received, and chaxge to the account of 
 
 S. T. VANCE, 
 To Isaac East, 
 
 Oshawa, Ont, 
 
 K 
 
 niCB RBOKONBD AFTER SIGHT. 
 
 ^57. 
 
 Hamilton, Jan. 3rd, 1877. 
 
 Thirty days after sight pay to the Order of W. R. Lingham, 
 Two Hundred and Fifty-seven Dollars, value received, and charge 
 to the account of 
 
 -Sf. T. VANCE. 
 To Isaac East, I 
 
 Oshawa, Ont. 
 
 I 
 
 QUESTIONS FOR REVIEW. 
 
 VORMS OF S1THTHB88 PAPERS. 
 
 What should be understood concerning the papers used in business ? 
 What ability should be acquired ? What is a Keceipt ? Why should 
 Receipts be preserved ? Give the wording of a Receipt for payment on 
 account. A Receipt in full of account. A Receipt in full of all de- 
 mands. A Receipt for a particular bill. A Receipt for borrowed 
 money. A Receipt in full for services. A Receipt for a note. A Re- 
 ceipt for rent. For interest due on a mortgage. For payment by the 
 band of a third party. What is a Bill of Goods ? What is an Invoice ? 
 Of what use is a Bill of Goods ? How are Invoices usually preserved ? 
 Write a Non-receipted Bill of Goods. A Receipted Bill. A Bill paid 
 by Note. What is an Order? Of what is it a voucher? Give the 
 form of an Order for Goods for another person. An Order for Money. 
 An Order for Goods for yourself. What is a Due Bill ? Write a Due 
 Bill payable in money. A Due Bill payable in Goods. What is a Pro- 
 missory Note ? What should be done when a Note is given or received 1 
 In what book is a full description of Notes entered ? Give the form of 
 a Note negotiable without indorsement. A Note negotiable by indorse- 
 ment. A non-negotiable Note. A Note payable on demand. Payable 
 at bank. A Joint Note. A Joint and Several Note, What is a Draft ? 
 When are Drafts made payable ? When made payable at sight, or a 
 certain time after sight, what should be done to fix the date of pay- 
 ment ? How is a Draft accepted ? Give an example. What should 
 also be written if the Draft is drawn payable at sight or after sight ? 
 Give the form of a Sight Draft. A Time Draft. A Draft where time is 
 reckoned after sight. 
 
 100 
 
/ 
 
 It 
 
 h :-i 
 
 I ? 
 
 PAET IL 
 
 DOUBLE ENTRY. 
 
 il !(! 
 
 
 \''i^ 
 
 or a 
 
 * > 
 
 *• II 
 
 r\ 
 
 «r -I 
 
 Jl 
 
r« 
 
 I 
 
 K 
 
 ■ i, 
 
 I ■ 
 
 DOUBLE ENTRY. 
 
 INTRODUCTION. 
 
 .V). 
 
 
 A COMPLKTE set of accounts, as th^.* pn])il is already aware, 
 Bhould furnish the means of i-eudily dfitermining — 
 
 I. Tho Present Financial Position, by showing the 
 
 present .Assets ji:id Liabilities. 
 II. How this position has been attained, by showing 
 the Original Capital and tlie subsequent Gains and 
 Losses. 
 As the i-esult in the latter ca.se must be the same as in the 
 former, tiie problem for the pupil may be thus stated : — 
 
 " Given, fheU.uincial covdiiion of a bndness at the beginning of a 
 certain period, tlie transactions diiriny the period, and tJie value of 
 the goods remaining at tlici end; it is required to record and cLissify 
 these various items, ^o as to exhibit tlie financial condition at the 
 end. First, from a statement of Assetn and Liabilities at that 
 time : second^ frrmi n .statement of the Gains and Losses, in connec- 
 tion with ine Original Capital ." • . . 
 
 He has seen tliat the Single Entry 'Ledger contains only 
 personal accounts, and that, even with the aid of the Cash Book 
 and Bill Book, it is not competent to do more than comply 
 with the first requirement. It if, therefore, as a system, 
 iiaperfect. 
 
 He has also seen that Double Entry supplies the defect of 
 Single Entry, by keeping accounts not only with the persons 
 with whom business is transacted, but also with every form of 
 value exchanged, and with ever?/ source of receipt and exjjendifvre. 
 It thus shows, in addition to all that Single Entry does (even 
 with the aids above nienl^ioned), the various channels through 
 which the gains and losses have been made ; thereby afford- 
 ing, not only pre.sumptive evidence of the correctness of the 
 work, but also a basis upon which to plan future enterprises. 
 Double Entry, therefore, meets both requirements, 
 and consequently reconmiends itself as a perfect system of 
 Account Keeping. 
 
 Such a problem as the one just stated the pupil has already 
 solved in the example of connected accounts, or Double Entry 
 
 102 
 
* BOOK-KEEPING. 
 
 ." \ ^ 
 
 Ledger, as we may call it, pages 22-25. One of the methods, 
 recoinmonded for doin^' that f^xercise was— to take cue trans- 
 action, make the proper ontri«;s in tlu^ two accounts affected by 
 it, and then jnocecd t<» tlir^ next. As all the tiansactions were 
 on account, a personal account was affected in eacli case. And 
 he will, no doubt, rememlx-r tliat every time be dehilcd a iitr- 
 . sonal account, he credited iriih an equal amount an impenmal one 
 (one ill the name of a ilunn, not of a person) ; ;ind similarly, 
 every time he credited a ]K;rsonal account he debited an^ im- 
 personal one with tin- same amount. A constant equilibrium 
 of debits and credits was thus kept up. This, nide-d, is a 
 fundamental principle of Book-keeping by Double 
 Entry. For every dollar and rent j'daccd on one side of the Led- 
 ger, there mmt he jmt as many dollara and cents placed tomewhere 
 on the other side. * 
 
 Whatever differences there may be in the working out of 
 the following sets, the pupil will observe that they are merely 
 peculiarities. The same general principle runs through the 
 whole. The particular ra^;t]>od or form in which books are 
 kept is not essential, so long as it conforms to the principle of 
 equal debit and credit. 
 
 a 
 
 BOOKS USED. 
 
 If we sell goods to Benjamin Worth, without receiving at 
 the same time anything in return, the two Ledger accounts 
 affected are Benjamin Wortb, and Merchandise, and we 
 may, if we like, at once debit Benjamin Worth, and credit 
 Merchandise, without previously entering the transaction in 
 anv other book. The Ledger, indeed, is not only the principal 
 book, but it may be said to be the only essentially necessary one. 
 If othei- books are used in addition, they are for convenience 
 only, and are, in general, subservient and contributory to it. 
 When the |)U!)il finds that their use pron)oi,es the neatness, 
 condensation and accuracy of the Ledger, he will 
 gladly avail himself of them as thqy are introduced, and keep- 
 ing always in mind the grand result he is aiming at, he will 
 have little, if any, difficulty in comprehending their nature. 
 
 103 
 
. i( 
 
 m 
 
 hlUir 
 
 '\ 
 
 M 
 
 
 It 
 
 
 
 'vt. 
 
 BOOK-KEEPING. ^ , 
 
 ^» BOOKS USED IN SET I. ' 
 
 The books used in the First Set are the Day Book, 
 Journal and Ledger. These are commonly called principal 
 books, in relation to othern, called auxiliary books, about which, 
 however, the pupil need not trouble himself at present. 
 
 ^ DAY BOOK. 
 
 This book is sometimes called The Blotter, and it is not an 
 inappropriate name for some people's Day Books. It should 
 contain a concise and comprehensive history of the merchant's 
 business transactions ; commencing with an inventory of his 
 effects, and the debts due him ; also of the debts due by him 
 to others^. 
 
 After this his business transactions should be recorded at 
 the time and in the order in which they occur. Every entry 
 should embrace thd following particulars : — 1st, the date ; 2nd, 
 the person or account ; 3rd, what you have bought or sold, 
 paid or received ; 4th, the tei iiis of payment ; 5th, the articles, 
 quantities, prices and amounts. 
 
 In writing this hook, everything should be clearly expressed 
 in as unirorm a style as possible, and the use of ambiguous 
 words and phrases carefully avoided, 
 
 JOURNAL, 
 
 The purpose of the Journal is to state, with regard to every 
 Day Book entry, which accounts in the Ledger are to receive 
 entries, on which side of the account, and for how much j so 
 tliat the posting to the Ledger may be rendered more easy, 
 and less lial.'le to error. 
 
 In journalizing any Day Book entry, therefore, the three 
 questions to be decided upon are — Which accounts are affected ? 
 On which .side 1 jind, For what amount ? If the pupil has 
 mastered the two chapters on Exam])les of Accounts, pages 12 
 to 30, he will have little, if any, difficulty. If he has not mas- 
 tered them, he will do well to read them again very carefully. 
 
 In any given sot of transactions, before applying the above 
 questions, we must settle upon the names of the accounts we 
 intend to open. For instance, in the First Set we are dealing 
 
 104 
 
BOOK-KEEPINQ. 
 
 ;U0U8 
 
 easy, 
 
 three 
 cted ] 
 has 
 'es 12 
 b mas- 
 jfully. 
 above 
 ts we 
 ealing 
 
 in two kiiuls of Wheat and two kinds of Flour. We are at 
 liberty to include all these under the head of Merchandise ; or 
 both kinds of flour under the head of Flour, and both kinds ol 
 wheat under the head of Wheat; or to have four accounts, 
 one for each kind of flour and one for each kind of wheat. In 
 this Set the second course is adopted. 
 
 A little reflection will point to the accounts affected. 
 We shall be directed to the side affected by asking —If it he 
 A personal one, — "Did he receive from us or deliver to uh ? " If it 
 be an impersonal one, — " Did we receive the thing or ]'art with 
 U?" With regard to those impersonal ones which si)t)w loss 
 or gain, as Merchandise, and especially Interest and Expense, 
 the question, " Did the thing cost us value or produce us value 1 " 
 may indicate more clearly to some minds the side aflected. 
 The pupil will observe, however, that this is only a modified 
 form of the previous question. For the thing which has coot 
 us value must have been received, and that which has produced 
 us value must have been parted with. 
 
 In the entry, January 2, ** Sold James Rimmer, Wheat on 
 account, $150," it is evident that the two accounts affected are 
 James Rimmer and Wheat. As he is the receiver ^ his account 
 must be debited ; and as wheat has been parted with. Wheat 
 account must be credited. This may be indicated in the Jour- 
 nal in several ways, for example : — 
 
 
 
 James Rimmer, Dr. 
 
 150 
 
 00 
 
 
 
 
 
 Wheat, Or. 
 
 
 
 150 
 
 00 
 
 
 
 Or, 
 
 
 
 
 
 
 
 James Rimmer, Dr. 
 
 150 
 
 00 
 
 
 
 
 
 To Wheat 
 
 
 
 150 
 
 00 
 
 
 
 Or, 
 
 
 
 
 
 
 
 James Rimmer 
 
 150 
 
 00 
 
 
 
 
 
 Wheat 
 
 
 
 150 
 
 00 
 
 There are several other ways of indicating in the Journal 
 what are to be the Ledger entries, but whichever is adopted, 
 they all mean simply that $150 is to be entered on the debit 
 side of James Rimmer's account, and the same amount on the 
 credit side of Wheat account. 
 
 In the entry of the same date, " Bought of Wm. Lingham, 
 Flour, for Cash, $300," the accounts affected are Flour and 
 
 105 
 
 
 ' -^.(l 
 
 
 ■.■■'<\ 
 
/ 
 
 BOOK-KEEPINfJ. 
 
 \ • 
 
 ;-.';! 
 
 Cash ; Flimr on the debit side because it came in, (^ash <»n the 
 credit siile because it went out. Wm. Lingliaui's accoimt, is not 
 affeded, because his relation to us as Dr. or Cr. is not cliatj^ed 
 by the transaction ; and, therefore, wo need not luakc any 
 entry in his account. We may ; but it' we do, we sliull liave 
 to credit him with the Flour he lias deUvered to us, and then 
 debit him with the Cash lie has received from us. And tluise 
 two entries, being equal in amount, would have the same effect 
 upon the account as if no entry had been made. 
 
 Two accounts at least will generally be aifected in any trans- 
 action. There may be more. In the <>pening entry, January 
 \i^t, four accounts are affected — Cash, Flour and Wheat on the 
 Dr. side, because all these came into the business ; and the 
 proprietor's account on the Cr, side, because he put iheiu into 
 the business. Adopting the second mode of Journal entry, 
 and using the term Stock to represent the propriijtor, instead 
 of using his own name, the proper Ledger entries will be thus 
 indicated : — I- , 
 
 Dr. 
 
 Cash 
 Flour 
 Wheat " 
 
 u 
 
 To Stock 
 
 4000 
 
 50 
 
 
 1000 
 
 00 
 
 
 3000 
 
 00 
 
 8000 
 
 50 
 
 \N, 
 
 We have adopted, for the present, the second mode of jour- 
 nalizing, for a reason which will be better a[)preciated when 
 we speak of the Ledger. We must, however, caution the pupil 
 against attaching to the word " jTo," in the expression " .fames 
 Rimmer, Dr. to Wheat," the meaning which, from the ordinary 
 use of language, would naturally sujijgest itself. The i)l:iin, 
 naked fact is, that James Himmer is Dr. to us for Wheat. If 
 we had this Journal entry, " Charles Adin Dr. to Beiijaiuln 
 Worthy* it would simply mean that CharU^s Adin is Dr. in 
 relation to us, and that Benjamin Worth is Cr. in relation to 
 us. We have nothing to do in our bocdcs with the relation of 
 outside parties to one another as Dr. or Cr., but only with the 
 relation of these parties to us. Indeed, so far as these two per- 
 sons are concerned, the meaning we would naturally attach to 
 the expression is the very opposite of the fact. For, the circum- 
 stance which f)ri<nnated the entry (which may have been our 
 giving to Charles Adin our order or draft upon Bcniainin 
 
 106 
 
BOOK-KEEPING. 
 
 A 
 
 Worth) would actually make lUvjanw Worth the Dr. of Charlea 
 A din. 
 
 The pupil cannot fail to have observed that his ability to 
 journalize any transaction must depend entirely iipdii his know- 
 ing what entries should be made in the L»'(l!j;('r, and this 
 depends upon his having a clear idea of the nature of the 
 different Ledger accounts. 
 
 The name of this book, Journal, is not su«^ .restive of its 
 use. From "jour,'" French for dai/, it is synoj»ymous with 
 Day Book, and was appropriate when it was tho practice in 
 the Journal not merely to indicate the proper Ledger entries, 
 but to add tha full details ot the transactions from the book ol 
 original entry, then called the Waste Book. 
 
 LKDGEK, 
 
 .. Vi 
 
 . I 
 
 50 
 
 1 per- 
 il! to 
 
 ;um- 
 our 
 
 nnin 
 
 The Ledger is the book in which the transactions, scattered 
 through the Day Book without order as to kind, are arranged 
 under distinct and appropriate heads, called accounts. The 
 amount put into the business by the proprietor, or taken out 
 by him, is put under his own name, or under the name Oi 
 Stock, or Capital ; every item affecting the debit or credit, 
 on account, of any particular person towards us is placed under 
 that person's name ; all receipts and payments of caslj, under 
 the head of Cash ; others' notes received and disposed oi, 
 under the head of Bills Receivable ; our notes issued and 
 redeemed, under the head of Bills Payable ; purchases and 
 salgs, under Merchandise ; and incidental outlay, under 
 
 EjiPENSE. 
 
 It has already been remarked that the proper entries might 
 be made in the L Iger at the time of the tiansaction, without 
 being entered in any other book whatever. Two inconve- 
 niences, Iwwever, would follow. The Ledger would have to 
 contain the details of the transaction, which would make the 
 accounts very unwieldy ; and in the hurry of business it would 
 be impossible to make the original entries in the Le'dger so 
 neatly as is desirable. By first entering the particulars of the 
 transaction in the Day Book, we need only transfer the amount 
 to the Ledger, with a word or two to explain the entry ; and 
 the transferring or posting to it can be done at leisure. 
 
 The original entries being made in the Day Book, they may 
 be transferred to the Ledger without the aid of the Journal ; 
 and in modern practice, where the original entries are so made 
 
 107 
 
 
 V 
 
 ^■1 
 
 !>■ 1-. 
 
It 
 
 i 
 
 I 
 
 ii 
 
 
 ^fl 
 
 r ' 
 
 BOOK-KKKFINO. 
 
 Uiat the fujrclijiftes, sales, casli receipts and payments, are kept 
 8«'parate from one another, it is unnecessary. Us introduction, 
 however, into tlie preliminary sets, will more deeply impress 
 upon the mind of the pupil the principle of equal debits and 
 credils ; and when it is formally dispensed with he will more 
 clearly see tliat its essence is retained in the peculiar mode of 
 making the original entries. 
 
 ' Namks and 0«deu of the Accounts. — The pupil need 
 scarcely be told that the Journal contains the names of all the 
 accounts that are to'bt opened in the Ledger. Although in 
 practice it is usual to give a page to each account, we will 
 apportion to each, only so much space as is necessary. In text- 
 books generally no definite order is observed, but as advantage 
 may result from attention to this matter, we will take first. 
 Stock ; after that, all the accounts whidi show an asset or a 
 liability, beginning with the most availnble asset ; and lastly, 
 those showing a loss or a gain. We shall thus have the accounts 
 of the First Set in tho following order, namely : — Stock, Cash, 
 IJills Keceivable, Bills Payable, Personal Accounts, Flour, 
 Wheat, Expense. The headings should be written in a clear 
 text-hand, and the abbreviations, Dr. and Cr., may be placed 
 at the top of the page ordy. 
 
 Posting. — Transfeiring an entry from any book to the 
 Ledger is termed posting, the word *^pn$t,^' as a verb, meaning 
 simiAy to putj to place. If the posting be done direct from the 
 Day Book, it is an intellectual operation, because for each separ- 
 ate Day Book entry we have to think which account, and which 
 side of it, is affected. But all the thinking has been done in 
 journalizing, and the results are so registered in the Journal, 
 that posting from it is reduced to a mere mechanical operation. 
 
 The first Journal entry is a plain direction that Cash, Flour 
 and Wheat are to be debited respectively with the amount 
 placed opposite to them, and that Stock is to be credited with 
 the amount placed opposite to it. Thus : — 
 
 )S 
 
 Dr. 
 
 Cash. 
 
 Cr. 
 
 18771 
 Jan. I 1 
 
 To Stock 
 
 4000 
 
 50i 
 
 108 
 
kicli 
 in 
 
 )unt 
 jiih 
 
 Dr. 
 
 ItOOK-K£EPlNG. 
 
 Flour. 
 
 Or. 
 
 1877 
 Jan. 
 
 liTo Stock 
 
 1 I 
 
 3000 00 
 
 Da 
 
 Wheat. 
 
 Cr. 
 
 1877 
 Jan. 
 
 1 To Stock 
 
 1000 
 
 00 
 
 Dr. 
 
 Stock. 
 
 Cr. 
 
 
 
 18/ / 
 
 
 1 
 
 
 Jan. 
 
 1 
 
 1 
 
 l|By Sun- 
 dries 
 
 8000 
 
 50 
 
 Instead of the word " Sundries" we could, if we had cliosen, 
 have written " Cash, Flour and Wheat." But it is usual, when 
 there is more than one account to name, to write " Sundries," 
 meaning several accounts. 
 
 The narrow column to the left of the money column in the 
 Ledger is for the Journal page. As soon as each Ledger entry 
 is made, the page of the Ledger should also be put in the second 
 column of the Journal. This shows that the item is posted, 
 and also the page of the Ledger on which the account is found. 
 
 Although in the Journal entries wo have named the debit 
 account first, we are at perfect liberty to name the credit 
 account first. We can say — 
 
 Flour Dr. to Cash, 
 
 or, 
 Cash Cr. by Flour. 
 
 So far as the /ac/ is concerned which originated the entry, 
 they both mean that Flour came in and Cash went out. So far 
 as the operation to he 'perfmmed in the Ledger is concerned, they 
 both direct that Flour Account is to be debited, and Cash 
 Account credited. 
 
 Reading the Ledger entries by giving the name of the 
 account first with Dr. or Cr., according as the entry is a debit 
 or credit one, the pupil will observe that every debit entry 
 will read like the Journal, word for word, and qwqyy credit entry 
 will read as the Journal would read if written with the credit 
 account first. 
 
 109 
 
 ■; ;l 
 
 ^ 
 
 I » 
 
 M 
 
 ' ' 1 
 
 I 
 
BOOK-KEEPING. 
 
 / • 
 
 JET I.— DOUBLE ENTRY. 
 
 'i 
 
 ■1 
 
 
 Hn?- 
 
 The following Set is worked out in full, in order to show 
 tjie pupil the proper form of carrying the transactions through 
 tlie diflVrent books, and should be thoroughly understood in 
 every particular before proceeding further. 
 - The transactions are first taken from the " Elecord," (which 
 is supposed to be a memorandum of the merchant's business 
 transactions in the date and order of their occurrence,) and 
 arranged properly in the Day Book, after which they are jour- 
 nalized and posted, 
 
 A faithful adherence to the foregoing instfuctions and illus- 
 trati(»ns will enable the pupil to record, readily and correctly, 
 the following exercise, which should be first written on Skeleton 
 paper prepared for that purpose, or on blank paper ruled up by 
 the student himself. 
 
 SET I.— PRODUCE BUSINESS. 
 
 It is expected that the student will not merely copy the 
 exercises in connection with this Set, but that he will work 
 tbcm out for himself according to the forms given. 
 
 RECORD OF TRANSACTIONS. 
 
 Toronto, January 1, 1877. 
 Commenced business, investing as follows : — Cash - $4000 50 
 500 bbls. Extra Flour, at $6 - - - 3000 00 
 800 hush. Fall Wheat, at $1.25 - - - 1000 00 
 J;»n, 2. Bought of W. Lingham, for cash, 50 bbls. 
 Superfine Flour, at $6 - 
 " Sold James Rimmer, on acc't, 100 bush. Fall 
 
 Wheat, at $1.50 
 
 Bought of H. Corby, on my note, 200 bush. 
 
 Spring Wheat, at $1 
 
 3. Sold Robert Thompson, on acc't, 400 bush. 
 
 Fall Wheat, at $1.50 . - . . 
 
 *' Bought of W Ijingham, on my note, 100 
 
 b.bls. Superfine Flour, at $6.50- 
 
 " " Bought of James Wilson, for cash, 200 bush. 
 
 FaU Wheat, at $1.50 .... 
 
 " 4. Sold John Smith, for his note, 100 bush. 
 
 Fall V^heat, at $1.75 .... 
 
 110 
 
 it 
 
 (( u 
 
 n 
 
 << 
 
 300 00 
 150 00 
 200 CO 
 600 00 
 650 00 
 300 00 
 175 00 
 
k'. 
 
 50 
 00 
 00 
 
 00 
 
 lO 00 
 CO 
 00 
 
 lo 00 
 io 00 
 rs 00 
 
 1877. 
 
 Jan. 4. 
 
 " 5. 
 
 N (( 
 
 r 
 
 « 6. 
 
 U It 
 
 <( 
 
 n 
 
 <t 
 
 8. 
 
 M 
 
 M 
 
 <( 
 
 9. 
 
 (• 
 
 « 
 
 (( 
 
 10. 
 
 (I u 
 
 « 11. 
 
 " 12. 
 
 M U 
 
 « 13. 
 
 It 
 
 15 
 
 li 
 
 <( 
 
 (t 
 
 « 
 
 n 
 
 16 
 
 :i 
 
 IT 
 
 a u 
 
 H U 
 
 U |V_ 
 
 BOOK-KEEPING. 
 
 Received of James Riramer, on acc'fc, Cash - $100 00 
 Bought for cash, 400 bush. Fall Wheat, at 
 
 $1.40 560 00 
 
 Sold James Johnson, for note, 100 bush. 
 
 Spring Wheat, at $1.20 - - - - 120 00 
 Bought of H. Corbv, on acc't, 500 bbls. Extra 
 
 Flour, at $6 - ' 3000 00 
 
 Sold James Miller, on acc't, 200 bbls. Extra 
 
 Flour, at $6.50 1300 00 
 
 Sold for cash, 100 bush. Sp'g Wheat, at $1.25 125 00 
 Sold James Rimmer, on acc't, 200 bush. Fall 
 
 Wheat, at $1.40 280 00 
 
 Received of James Miller, his note in full 
 
 of acc't 1300 00 
 
 Paid cash for sundry items of expense - 25 50 
 
 Sold Robert Thompson, on acc't, 250 bush. 
 
 Fall Wheat, at $1.50 - - - - 275 00 
 Bought of \V. Liiighain, on acc't, 450 bush. 
 
 Spring Wheat, at $1 - - - 450 0(> 
 
 Paid H. Corby, cash on acc't - - 1000 00 
 
 Sold Robert Brown, 200 bush. Spring Wheat, 
 
 at $1.25 ----... 250 00 
 100 bush. Fall Wheat, at $1.30 - • - 130 00 
 Received in payment, his note for $loO, cash 
 
 for balance, $230. • 
 
 Bought of W. Lingham, on my note, i»0 bbls. 
 
 Extra Flour, at $6. 30 - - - - ol5 00 
 Paid cash for my note of the 3rd inst., favor 
 
 of W. Lingham - - - . - 650 CO 
 Sold J. Rimmer, on acc't, 200 bbls. Extra 
 
 Flour, at $7 1400 00 
 
 Paid cash in full for my note, favor H. Corby 200 00 
 Received of R. Thompson, cash in full of ace t 975 00 
 Received cash, in full for J. Smith's note of 
 
 the 4th inst. 175 00 
 
 Gave H. Corby my note on acc't - - 1000 00 
 
 Bought of W. Lingham, on acc't, 550 bush. • 
 
 Spring Wheat, at $1 - - - - 550 00 
 Sold J. Rimmer, on acc't, 150 I»bl.s. Super- 
 fine Flour, at $8 - ... - 1200 00 
 Received cash, in full for J. Johnson's nolo 
 
 of the 5th inst. 120 00 
 
 Paid sundry expenses in cash - • . ] [() DO 
 
 111 
 
r 
 
 BOOK-KEEPING. 
 INVENTORY OF GOODS REMAINING UNSOLD. 
 
 600 bbls. Extra Flour,' at $6.00 
 50 " ." 6.30 
 
 200 bush. Fall Wheat, 1.25 
 
 50 ** " 1.10 
 
 800 - Spring Wheat, 1.00 
 
 $3600 00 
 315 00 
 
 250 00 
 
 70 00 
 
 800 00 
 
 3915 00 
 
 1120 00 
 
 v\ 
 
 ' I 
 
 
 SPECIMEN DAY BOOK. 
 
 TO THE PUPIL. 
 
 After becoming familiar with the preceding instructions, you 
 may write up the Day fJook according to thi' following form, 
 then lay aside the printed book, and on a slie(3t of waste paper 
 journalize the entries of the Day Book, aft<*r whicli compare 
 with the printed Journal to see if you have journalized cor- 
 rectly , then post to the Ledger as directed in explanations on 
 posting, independent of the prints book, and make out your 
 Trial Balance and Statements. 
 
 The check mark, {^) is to show that the entry to which it is 
 placed is journalized. It should be made imimdiately o.fiet 
 journalixing— never before. 
 
 Toronto, January 1st, 1877. 
 
 0) 
 
 
 
 • this day commences the 
 
 
 
 
 
 - 
 
 
 Produce Business at No. 128 Front 
 
 
 
 
 
 
 
 Street, renting store from F. John- 
 
 
 
 
 
 
 
 son, and investing as follows : — 
 
 
 
 
 
 
 
 Cash 
 
 4000 
 
 50 
 
 
 
 t Extra 
 
 v/ 
 
 600 bbls. Flour |6 00 
 
 3000 
 
 00 
 
 
 
 Fall. 
 
 
 800 bush. Wheat 1 25 
 
 1000 
 
 00 
 
 8000'50 
 
 1 
 
 
 
 Amount forward 
 
 
 1 
 
 8{){)0 
 
 .H) 
 
 * Pupil to use his owii uatne. 
 
 t The margin to the left is for the description or mark of tli«! articles, ir 
 order that they may be readily referred to. 
 
 112 
 
 !"]i^ 
 
1 *( 
 
 [D 
 
 '50 
 
 jO 
 
 I ^^ 
 
 (2) ' 
 
 BOOK-KEEPING. 
 
 Toronto, January '2, 1877. 
 
 Super. 
 
 Fall. 
 
 Spring. 
 
 Fall. 
 
 Super. 
 
 Fall. 
 
 Fall. 
 
 
 Canied over ij 
 
 Bought of W. Lingham for cash, i 
 50 bbls. Flour $6 00 iP 
 
 Sold James Kiniiner on acc't, j 
 100 busii. Wheat $1 501 
 
 Bought of !L Corby on my note, 
 x/l 200 bush. Wheat $1 00 
 
 I I 
 
 v/ 
 
 Sold Robert Thompson on acc't, 
 400 bush. Wheat $1 50 
 
 i Bought of W. Lingham, on my note 
 ^i 100 bbls. Flour . $6 50 
 
 Fall. 
 
 J Bought of James Wilson for cash, 
 ^ 200 bush. Wheat $1 50 
 
 4 
 
 v/ 
 
 Spring.ly/ 
 Extra. 
 Extra. >/ 
 
 Sold John Smith for his note, 
 100 bush. Wheat $1 75 
 
 Received of Jas. Eimmer on acc't, 
 Cash 
 
 5 
 
 Bought for cash, 
 400 bush. Wheat 
 
 $1 40 
 
 i( 
 
 Sold James Johnson for his note, 
 100 busJi. Wheat $1 20 
 
 (5 
 
 Bought of H, Corby on acc't, 
 500 bbls. Flour ' $6 00 
 
 SoM James Miiler on acc't, 
 200 bbls. Flour $6 50 
 
 11 
 
 Amount forward 
 113 
 
 650 
 300 
 175 
 100 
 
 5G0 
 
 120 
 
 I 
 
 3000 
 1300 
 
 15455 
 
 00 
 00 
 00 
 00 
 00 
 00 
 OC 
 0( 
 5( 
 
 8000 50 " W 
 
 ■'■' 1 
 300 00 ?| 
 
 V. It. 
 
 •! f 
 
 ' l' 
 
 150 
 
 00 r 
 
 ' 1; 
 
 200 
 
 00 ■: 
 
 
 ■ H 
 
 600 
 
 00 ? 
 
 #11 
 
 
 ■'II 
 
BOOK-KEEPING. 
 
 f 
 
 Toronto, January 6, 1877. 
 
 if.: 
 
 S: l*i 
 
 
 (3) 
 
 Spring, 
 Fall. 
 
 Fall. 
 
 Spring. 
 
 Spring. 
 Fall. 
 
 Extra. 
 
 Extra. 
 
 Carried over 
 I Sold for cash, 
 ^\ 100 bush. Wheat 
 
 ^1 25 
 
 J 
 J 
 
 J 
 
 J 
 
 Sold James Rimmer on acc't, 
 
 200 bush. Wheat .f 1 40 
 
 « 
 
 Received of James Miller his note 
 
 in full of account 
 9 
 
 Paid cash for sundry expenses 
 
 Sold Robert Thompson on acc't, 
 
 250 bush. Wheat $1 50 
 , 10 
 
 Bought of W. Lingham on acc't, 
 450 bush. Wheat $1 00 
 
 Paid H. Corby cash on acc't 
 1 1 
 
 Sold Robert Brown 
 
 200 bush. Wheat $1 25 
 
 100 « *' 1 30 
 
 Rec'd in payment his note, $150 
 
 Cash for the balance, 230 
 
 12 
 
 Bought of W. Lingham, on my 
 note, 
 50 bbls. Flour $6 SO 
 
 'f 
 
 Paid cash for mj- note of 3rd inst. 
 i 3 
 
 Sold J. Rimmt^r on acc'c, 
 J\ 200 bbls. Flour .$7 00 
 I 1 5 
 
 Paid c.'ish in full for rav notA- 
 
 J 
 
 favor H. Corby 
 
 Amount forward 
 114 
 
 250 
 130 
 
 00 
 00 
 
 15455 50 
 125 00 
 
 , I 
 
 280 00 
 
 i300;oo 
 
 2550 
 
 375 
 
 450 
 1000 
 
 380 
 
 00 
 
 00 
 00 
 
 00 
 
 315 
 
 650 
 
 1400 
 200 
 
 00 
 
 00 
 
 00 
 00 
 
 21UaG0' 
 
BOOK-KEEPIl^a. 
 
 (4) 
 
 1500 
 
 5000 
 
 00 
 
 00 
 
 booo 
 
 Toronto, January 16, 1877. , 
 
 Spring 
 Super. 
 
 J 
 
 Carried over 
 Received of R. Thompson, cash 
 in full of acc't 
 
 « 
 
 Received cash in full for John 
 
 Smith's note of the 4th inst. 
 
 16 
 
 Gave H. Corby my note on acc't 
 
 u 
 
 Bousjht of W. Lingham on acc't, 
 550 bush. Wheat %\ 00 
 
 « 
 
 Sold James Rimraei* on acc't, 
 
 150 bbls. Flour $8 00 
 « 
 
 Received cash in full for J. John- 
 son's note of the 5th inst. 
 
 18 
 
 Paid cash for sundry expenses 
 
 *Inventory of goods unsold : 
 600 bbls. Extra Flour, at 
 
 $6 00 - - - $3600 
 50 bbls. Extra Flour, at 
 
 $6 30 - - - 315 
 
 200 bush. Fall Wheat, at 
 
 $1 25 - - - 250 
 50 bush. Fall Wheat, at 
 
 $1 40 - - - 70 
 
 800 bush. Spring Wheat, 
 
 at $1 00 - - - 800 
 
 3915 
 
 21956 
 975 
 
 176 
 1000 
 
 550 
 
 1200 
 
 120 
 140 
 
 26116 
 
 00 
 
 1120 
 
 00 
 
 00 
 00 
 
 00 
 00 
 
 00 
 
 00 
 
 00 
 
 oc 
 
 00 
 
 * Althouffli it is coBamon to value the goods on hand at thfir coat price, 
 tiikinf,' off, it neaespary. a per oentage for bad stock or depreciation in value, 
 5t would be more 'correct to reckon them at what they can be bought for at 
 the time of vahintu^n.. 
 
 ;' -Si- 
 ( 
 
 
 >g'0' 
 
 115 
 
BOOK-KEEPING. ^ 
 
 SPECIMEN JOURNAL. 
 
 Some business men require their Journal to embody brief 
 explanations of their transactions ; but we do not intro<luce 
 this plan now, because, in his incipient steps, evervtiiing tluit 
 takes the learner's attention off the LEDGER TITLES has a 
 tendency to [terplex and embarrass him. Familiarity with the 
 following form will prepare the pupil for using any other with- 
 out difficulty. 
 
 The numbers in the narrow column to the left of the names 
 of the accounts are the pages of the Ledger to which the 
 various items are posted. Each Ledger page is inserted as soon 
 as the item is posted— not before. 
 
 Toronto, January 1, 1877. 
 
 (1) 
 
 Flour Dr. 
 
 To Cash 
 tt 
 
 i CashDri 
 
 2 Hour « 
 
 3 Wheat" 
 
 1 To Stock 
 
 2 • 
 
 o 
 
 1 
 
 2 
 3 
 
 3 
 1 
 
 2 
 3 
 
 James Rimmer Dr. 
 To Wheat 
 
 Wheat Dr. 
 
 To Bills Payable 
 3 
 
 Robert Thompson Dr. 
 To Wheat 
 
 Lr. 
 To Bills Payable 
 
 It 
 
 3 iWiicjil Dr. 
 
 1 To Casli 
 
 Amounts forward 
 116 
 
 4000 
 3000 
 1000 
 
 300 
 
 150 
 200 
 600 
 
 G50 
 300 
 
 50 
 00 
 00 
 
 00 
 00 
 00 
 00 
 00 
 00 
 
 10200 50 
 
 8000 
 300 
 150 
 
 50 
 00 
 00 
 
 200 00 
 600 ('^ 
 
 650 
 300 
 
 10200 50 
 
 00 
 
 (10 
 
UOUK-KEEPINO. 
 
 (2) 
 
 Toronto, January 4, 1877. 
 
 (1) 
 
 15000 
 
 500 00 
 
 jOOiC^ 
 
 65000 
 
 ISOOOO 
 10050 
 
 1 
 3 
 
 1 
 2 
 
 3 
 1 
 
 1 
 3 
 
 2 
 2 
 
 2 
 
 2 
 
 1 
 3 
 
 2 
 3 
 
 1 
 2 
 
 3 
 1 
 
 2 
 3 
 
 3 
 o 
 
 Carried over 
 Billa Keceivable Dr. 
 To Wheat 
 
 Caah Dr. 
 
 To James Rimmer 
 5 
 
 Wheat Dr. 
 
 To Gash 
 
 M 
 
 Bill Beceivable Dr. 
 To Wheat 
 ^ 6 — 
 
 Flour Dr. 
 
 To H. Oorbv 
 
 it 
 
 James Miller Dr. 
 
 To Flour 
 « 
 
 Cash Dr. 
 
 To Wheat 
 8 - 
 
 James Bimmer Dr. 
 To Wheat 
 
 Bills Receivable Dr. 
 
 To James Miller 
 
 9 
 
 Expense Dr. 
 
 To Cash 
 
 Robert Thompson Dr. 
 To Wheat 
 
 10 
 
 Wheat Dr. 
 
 To W. Lingham 
 
 Amounts forward 
 117 
 
 10200 
 176 
 
 50 
 00 
 
 100 
 
 560 
 120 
 3000 
 1300 
 125 
 280 
 
 1300 
 
 25 
 
 00 
 
 00 
 00 
 00 
 00 
 
 375 
 
 00 
 00 
 
 00 
 
 50 
 
 00 
 
 45000 
 
 [SOU 
 
 00| 
 
 10200 
 176 
 
 100 
 
 560 
 
 120 
 
 3000 
 
 1300 
 
 125 
 
 280 
 
 1300 
 
 25 
 
 375 
 
 450 
 
 50 
 00 
 
 00 
 
 00 
 
 00 
 
 00 
 
 00 
 
 0( 
 
 00 
 
 00 
 
 50 
 
 00 
 
 00 
 
 1801l|00 
 
 J ■-'il 
 
 1" 
 
 I 
 
r 
 
 1; Si]' 
 
 !.! 
 
 '" B00K-KKE1»ING. 
 ToKONlo, January 10, 1877. 
 
 (») 
 
 I Carried over 
 
 2 iH. Coiby Dr. 
 
 1 
 
 To Cash 
 11 
 
 Bills Receivable Dr. 
 
 1 CVsh 
 3 
 
 (( 
 
 To WIkvU. 
 
 2 
 1 
 
 1 
 1 
 
 2 
 2 
 
 1 
 1 
 
 1 
 
 2 
 1 
 
 2 
 1 
 
 3 
 
 o 
 
 2 
 2 
 
 1 
 1 
 
 3 
 
 I \ 
 
 Flour Dr. 
 
 To Bills Payable 
 
 Bills Payable Dr. 
 - To Cash 
 
 13 - 
 
 James KimmtT Dr. 
 
 To Flour 
 15 — 
 
 Bills Payable Dr. 
 To Cash 
 
 Cash Dr. 
 
 To R. Thompson 
 " Bills Receivable 
 16 
 
 H. Corby Dr. 
 
 To Bills Payable 
 
 17. 
 
 Wheat Dr. 
 
 To W. Lingham 
 
 James Riminer Dr. 
 
 To Flour 
 
 « 
 
 Cash Dr. 
 
 To Bills Receivable 
 18 
 
 Expense Dr. 
 
 To Cash 
 
 1801100 
 1000 00 
 
 150 
 230 
 
 315 
 
 00 
 00 
 
 00 
 
 00 
 
 100000 
 
 550 00 
 1200 
 120 
 
 00 
 
 00 
 
 .65000 
 1400 
 200 
 1160 
 
 00 
 
 00 
 
 140:00 
 
 20110 00 
 
 18011 
 1000 
 
 380 
 315 
 650 
 1400 
 200 
 
 00' 
 00 
 
 00 
 00 
 00 
 00 
 00 
 
 975 
 175 
 
 1000 
 
 550 
 
 1200 
 
 120 
 
 00 
 00 
 
 00 
 00 
 00 
 00 
 
 140 00 
 
 2G11(;00 
 
 IMS 
 
00 
 
 00 
 
 00 
 
 00 
 
 00 
 
 )00 
 
 J50 00 
 
 JOO 
 
 [20 
 
 BOOK-KEEPING. 
 
 INDEX TO THE LEDCER. 
 
 A. 
 
 B. 
 
 Bills Receivable. 
 Bills Payable. 
 Balance. 
 
 J. 
 
 Fage. 
 
 Cash. 
 Corby, H. 
 
 0. 
 
 ^' 
 
 D. 
 
 Expense. 
 
 £. 
 
 Flour. 
 
 F. 
 
 G. 
 
 H. 
 
 
 L 
 
 1 
 I 
 
 1 
 
 2 
 
 K. 
 
 //. 
 
 L. 
 Linghara, W. 
 Loss and Gain. 
 
 l'»ge. 
 
 M. 
 
 N. 
 
 O. 
 
 i». 
 
 * 
 
 R. 
 Rimmer, James. 
 
 S. T. 
 
 Stock. 
 
 U. V. W. 
 
 Wheat. 
 
 
 CAUTION.— Always Index an account before entering it in the Ledger. 
 Without this precaution it may be forgotten and a second account opened 
 with the same indivirhial ; ami unimportant as this may appear, it oftei 
 Itads to very troublesome mistakea. 
 
 119 
 
 
 
 
 '■■if, ■( 
 
 
 
 --. 
 
 
 1* 
 
 it 
 
 
 t ■ - > 
 
 :i:i 
 
IK)OK-KJC£PIKa. 
 
 r ■' 
 
 SPECIMEN LEDGEB. 
 
 Dk. 
 
 / AmouBU wltbdrawn 
 V ftud LoM, 
 
 v\ 
 
 a) 
 
 irltbdrawii\ Ci'rr^nir /iBTMlmanta aadX n^ 
 
 , Ifwiy. / OlUbii.. ^ Oftlu,lf».y, ; U». 
 
 1877 
 
 1 
 
 
 1S77 
 
 
 
 
 t>an. 
 
 1 
 
 
 
 
 1 
 
 20 
 
 By Suudries 
 
 8000 6( 
 
 (k«c«1tml) 
 
 CASH. 
 
 (rkM uui) 
 
 Jan. 
 
 1 
 
 (( 
 
 4 
 
 « 
 
 () 
 
 << 
 
 11 
 
 « 
 
 15 
 
 i< 
 
 <( 
 
 « 
 
 17 
 
 To Stock 
 " J. IMinmer 
 
 •* Wheat 
 
 \ 
 
 (( 
 
 i( 
 
 '*■ K. Thomp- 
 son 
 *' BilU Rec. 
 
 (< 
 
 (t 
 
 4000,50 
 10000 
 125|«)0 
 23000 
 
 97500 
 17500 
 12000 
 
 Jan, 
 
 u 
 
 (( 
 (I 
 
 2 
 3 
 5 
 9 
 
 10 
 12 
 15 
 18 
 
 By Flour 
 
 " Wheat 
 << (i 
 
 '' Expense 
 " H. Corby 
 *' Billa Pay. 
 
 (( 
 
 <( 
 
 " EzpeuM 
 
 300 OC 
 30000 
 
 660 
 2 1 25 
 3 1000 
 3 G5000 
 
 20000 
 14000 
 
 00 
 50 
 00 
 
 {^'^^kT^'^) bills receivable. PXr^'SXSar*) 
 
 m "' 
 
 >l , 
 
 Jan. 
 
 4 
 
 ti 
 
 5 
 
 u 
 
 8 
 
 (< 
 
 11 
 
 To Wheat 
 
 ^l it 
 
 " J Millei 
 " Wheat 
 
 / Mt Motea \ 
 \r«d««mMl / 
 
 17500 
 
 120J00 
 
 1300,00 
 
 150i00, 
 
 Jan. 15 
 a 17 
 
 By Cash 
 
 17500 
 12000 
 
 BILLS PAYABLE. 
 
 /Mt Nnt«M\ 
 \ uwued. / 
 
 Jan. 
 
 12 
 
 To Cash 
 
 3 
 
 65000 
 
 Jan. 
 
 2 
 
 By Wheat 
 
 1 
 
 200 
 
 00 
 
 <( 
 
 15 
 
 (( <( 
 
 3 
 
 20000 
 
 u 
 
 3 
 
 " Flour 
 
 1 
 
 650 
 
 00 
 
 
 
 
 
 
 
 <( 
 
 12 " " 
 
 3 
 
 315 
 
 00 
 
 
 
 
 
 
 
 1 
 
 16 
 
 " H. Corby 
 
 3 
 
 1000 
 
 00 
 
 120 
 
v\ 
 
 175|00 
 12000 
 
 20000 
 
 650^00 
 
 31500 
 
 llOOOOO 
 
 (2) 
 Dr. 
 
 
 BOOK-KEEPING. 
 
 JAMES RIMMEH. 
 
 
 Or 
 
 1877 
 
 
 
 
 
 1877 
 
 
 
 
 ., 
 
 1 
 
 
 Jan. 
 
 2 
 
 To Wheat 
 
 1 
 
 16000 
 
 Jan. 
 
 4 
 
 By Gash 
 
 2 
 
 100 
 
 (Hi 
 
 (t 
 
 8 
 
 <( t( 
 
 2 
 
 28000 
 
 
 
 
 
 1 
 
 
 n 
 
 13 
 
 *' Flour 
 
 3 
 
 140000 
 
 
 
 " ^ 
 
 
 
 
 t( 
 
 17 
 
 a (( 
 
 3 
 
 i 
 
 1200 00 
 
 
 
 
 
 1 
 
 
 W. LING HAM. 
 
 /Hla Aoeountv 
 
 Jan. 
 
 10 By Wheat 
 17! " " 
 
 45000 
 55000 
 
 / Mr Account \ 
 
 ROBERT THOMPSON. 
 
 /Hli AeemiBt\ 
 V agalut IB*. / 
 
 Jan. 
 << 
 
 3!To Wheat 
 9 
 
 (( 
 
 i* 
 
 60000 
 37500 
 
 Jan. 
 
 15 By Cash 
 
 97500 
 
 /Mj Account \ 
 Vaguniit blm. / 
 
 H. CORBY. 
 
 /Hli AneouBtX 
 \a(r»lnit me. / 
 
 Jan.jlO 
 " 16 
 
 To Cash 
 " Bills Pay. 
 
 lOOOiOOlJan. 
 1000 00' 
 
 6 
 
 By Flour 
 
 300000 
 
 /Mr AeeoaBt\ 
 Vftcunit him. / 
 
 JAMES MILLER. 
 
 /nu AneoimtX 
 V agalnit in«. / 
 
 Jan.' 6 
 
 To Flour 
 
 130000 
 
 Jan. 
 
 8 
 
 By Bills Rec. 
 
 1300 
 
 00 
 
 
 
 (Cort.) 
 
 
 FLOUR. 
 
 
 ^Proceedi.j 
 
 
 
 
 Jan. 
 
 <( 
 
 a 
 << 
 <( 
 
 . 
 
 1 
 
 2 
 
 3 
 
 6 
 12 
 
 To Stock 
 " Cash 
 '' Bills Pay. 
 *' H. Corby 
 " Bills Pay. 
 
 1 
 1 
 
 1 
 2 
 
 3j 
 
 300000 
 30000 
 65000 
 
 300000 
 31500 
 
 Jan. 
 t< 
 
 6 
 
 13 
 17 
 
 By J. Miller 
 *' J. Rimmer 
 
 2 
 3 
 3 
 
 1300 
 
 1400 
 1200 
 
 oi; 
 
 oil 
 
 121 
 
 1' 
 
BOaK-KBEPINO. 
 
 r • 
 
 In 
 
 
 
 
 
 
 
 
 
 
 
 
 (8) 
 
 In 
 
 Db. (o«») 
 
 
 W] 
 
 HEAT. ( rncMti,.) §^ 
 
 ^M 
 
 1877 
 
 
 
 , 
 
 111877 1 
 
 1 
 
 
 ^H 
 
 Jan. 
 
 1 
 
 To Stock 
 
 1 
 
 1000,00liJan. 2'ByJ. Rimmer 
 
 1 
 
 15000 
 
 ^H 
 
 \ 
 
 2 
 
 '♦ BillH Pay. 
 
 1 
 
 20000 
 
 " 31 " R. Thomp- 
 
 i 
 
 1 
 
 IH 
 
 
 3 
 
 " Cash 
 
 1 
 
 30000 
 
 
 son 
 
 1 
 
 00000 
 
 ^H 
 
 
 6 
 
 « << 
 
 2 
 
 50000 " 
 
 4 •' Bills Roc. 
 
 2 
 
 17500 
 
 %HS 
 
 
 10 
 
 " W.Lingham 
 
 2, 450,001 " 
 
 5 
 
 it c< 
 
 2i 
 
 12000 
 
 Wm 
 
 
 17 
 
 t< it 
 
 3 
 
 550001 
 
 (t 
 
 6 
 
 " Cash 
 
 2 ; 12500 
 
 Awfl 
 
 
 
 1 
 
 
 
 
 
 8 
 9 
 
 11 
 
 " J. Rimmer 
 " R. Thomp- 
 son 
 " Sundries 
 
 21 28000 
 
 1 
 t 
 
 2J 37500 
 31 38000 
 
 VjBjB 
 
 /Oulltty lork 
 
 EXPENSE. 
 
 MUm* 
 
 Jan. 
 
 18 
 
 To Cash 
 
 ;i 1 ! 
 
 3ii ?5:50 
 
 
 
 
 
 
 
 H 
 
 n 
 
 (( 
 
 (( << 
 
 3 
 
 140 00 
 
 1 
 
 
 
 
 
 1 
 1 
 
 TEST OF THE LEDGER. 
 
 The first thing to be done, after the transactions of a set 
 have been posted, is to test the correctness of your work, by 
 comparing the amounts of the two siiles of tlie Ledger, and 
 seeing that the sum of the Dr. side of all the accounts 
 equals the sura of the Cr. side. - \^ 
 
 This is accomplished by making out a 
 
 ■i^i j 
 
 ii ;,,v 
 
 L.P. 
 
 TRIAL BALANCE. 
 
 Db. 
 
 Cr. 
 
 
 1 
 1 stock 
 
 1 
 
 8000 50 
 
 
 1 Cash 
 
 5725 
 
 50 
 
 3175 50 
 
 , 
 
 1 Bills RecoivAMo . . . - 
 
 1745 :00i 
 
 295 00 
 
 
 1 jBills Payable 
 
 850|00! 
 
 2105 00 
 
 
 2 James Rimmer - - . - 
 
 303000 
 
 100 00 
 
 
 2 W. Litigham 
 
 1 
 
 ' 1000 00 
 
 
 2 Robert Thomp on - - - -| 
 
 975 00 
 
 075 00 
 
 
 2 
 
 H. Corby . . . . . 
 
 2000 00 
 
 3000 00 
 
 
 2 
 
 James Miller - - - - - 
 
 ! 11300 OOi 
 
 1300 00 
 
 
 2 
 
 Flour 
 
 72G5 00, 
 ! 3060 OOi 
 
 ' 3000 00 
 
 
 3 
 
 Whoat - - - - . - 
 
 ■ 2205 00 
 
 
 3 
 
 Expense ------ 
 
 1 1G5 
 
 -1 
 
 ooi 
 
 ' • 1 
 
 
 2U116 
 
 : 2G116 00 
 
 An explanation of the process of takinsT off a Trial Balance is given on 
 the next page . 
 
 lao 
 
BOOK-KBEPINO. 
 
 TRIAL BALANCE. 
 
 A**" 
 
 ,000 50 
 175 60 
 
 295 00 
 1()5 00 
 100 00 
 
 i 000 00 
 
 1075 00 
 
 mo 00 
 
 L 300 00 
 iOOO 00 
 l?A)7) 00 
 
 illOOO 
 iven on 
 
 A Trial Balance is taken to ascertain if the Debits tncl 
 Credits on the Ledger are equal, orbpl-^nce. 
 
 As soon as you finish postint; all the transactions to the Led- 
 ger, according to tlie principle of equal debits and credits, you 
 take off a Trial Balance. This is done by first footing the 
 items of the different accounts, placing the amounts in light 
 pencil marks, which should be erased after the completion of 
 the work. The totals of the accounts are carried to the Trial 
 Balance, as per model form, leaving out such accounts as close 
 themselves. By adding to the footings of the Trial Balance 
 given, the footings of accounts that close themselves, you will 
 find that they exactly correspond with those of the Journal, 
 which would not be the case if any of the Journal entries were 
 not posted ; and as the footings of the Journal columns also 
 tally with those of the Day Book, it is almost conclusive tha' 
 all the original entries have found their way into the Ledger. 
 There will remain two chances of error in the accounts, viz.: 
 from in)proper Journal entries, or from posting to the wrong 
 accounts in the ^(e(^g('!r. 
 
 It will be observed from the foregoing remarks, that the 
 Trial Balance is not always a strict proof of the correctness ol 
 the work, though it is so nearly a test, that under ordinary 
 circumstances, it nicy be considered satisfactory. 
 
 It is supposed that you have gone through the process of 
 ioumalizing e nd posting the preceding set, and that your Led- 
 ger accounts present an equilibrium of debits and credits. A 
 Trial Balance may. be taken with the difference columns only, 
 or with the amount columns only. The latter is very fre 
 quently used in business, a form of which is given on page 122. 
 In a real business, a Trial Balance may be taken monthly, and 
 should be taken as often as once in three months, even though 
 the books are closed but once a year. The following is another 
 form of Trial Balance, from the same Ledger. 
 
 
 li 
 
BOOK-KEEPINQ. 
 
 r 
 
 h 
 
 TRIAL BALANCE. 
 
 1 
 
 Dr. fiftl. 
 
 Dr. 1 
 Footingn. 
 
 1 
 
 1 
 1 
 1 
 
 Stock 
 
 ' Cr. 
 
 Footing*. 
 
 1 
 
 Cr. B»L 
 
 
 
 
 
 1 
 8000^50 
 
 8000 
 
 6^ 
 
 2550 
 
 00 
 
 5725 
 
 50 
 
 1 
 
 Cash .... 
 
 3175!50 
 
 
 
 1450:00 
 
 1745 
 
 oo; 
 
 1 
 
 Bills Receivable- 
 
 29500 
 
 
 
 
 
 850 
 
 OOi 
 
 1 
 
 Bills Payable - 
 
 2165J00 
 
 1316 
 
 00 
 
 2930 
 
 oo' 
 
 3030 
 
 ooi 
 
 -7 
 
 James llimraer - 
 
 lOOJOO 
 
 
 
 ' 
 
 
 
 
 2 
 
 W. Linj^ham 
 
 1000 00 
 
 1000 
 
 00 
 
 
 1 
 
 2000 
 
 00 
 
 2 
 
 H. Corby - 
 
 3000 
 
 00 
 
 1000 
 
 00 
 
 3365 
 
 00 
 
 1 7265 
 
 00 
 
 2 
 
 Flour 
 
 3900 
 
 00 
 
 
 
 855 
 
 00 
 
 3060 
 
 00 
 
 3 
 
 Wheat 
 
 2205 
 
 00 
 
 
 
 165 
 
 50i 
 
 50l 
 
 1 
 
 166 
 
 50 
 00 
 
 3 
 
 Expens* - - - 
 
 
 
 
 
 11315 
 
 23841 
 
 23841 
 
 00 
 
 11315 
 
 50 
 
 I 
 
 Note.- -The Ledger from which the foregoing Trial Balance was taken 
 does not contain all the rosults of the business. Hence, in getting at the 
 f'a^a from which to ascertain the net worth, or the net gain or loss, it will be 
 •leoessary to go beyond the Ledger, and estimate the value of unsold mer- 
 chandise or other similar i)roperty. 
 
 In each of the statemontis wliich follow, an inventory of unsold p oporty 
 is supposed to have been taken, the resnlts bein(? given. 
 
 : \. " 
 
 mw 
 
 CLASSTFIFJ) STATEMENTS. 
 
 The prpcfdincr *' Statement, or Trial Balance,** is supponed 
 to show the footings and hnlances of tlie Ledisjer accounts grow- 
 ing out of the tniihsactions indicated in Set I. ; and, as far as 
 the open Ledger is concerned, affords as completely as possible 
 the < xact condition of the hnsin«'ss at the. time the Statement 
 purports to )jave \w^a\ rendered. The form of this Statement, 
 liowever, is not sufficiently compact, nor the specific results of 
 the husinesj,' so tlistinctly given as to present at a glance the 
 gmieral result wliich constitutes the objective point of all busi- 
 ness record. \To accom])!' h this, it becomes necessary to re- 
 arrange or damfy the sepfirate residts as shown on tlie Ledger. 
 
 With regard to those accounts which show only the cost and 
 proreeds from miles of property having a variable valve^ it is plain 
 tliat the TfM imivs of such property remaining on hand cannot 
 
 1S4 
 
v\ 
 
 BOOK'KLEPUHQ. 
 
 be ascertained from the accounts, but must be found by actual 
 enumeration and valuation ; a process known in business at 
 "taking account of stock," or "taking au inventory." The 
 value of property which does not vary, viz., Cash, Notes, and 
 Personal indebtedness, is readily ascertained from the accounts 
 themselves. 
 
 In classifying accounts two grand results are had in view ; 
 first, the Net Worth or Insolvmcy of the business, that is, its 
 Financial condition ; second, the Nd Gain or Loss during a 
 specified period. These are shown in the following statements, 
 the material for which lias ah'eady been taken from the Ledger, 
 and put in the form of a Trial Balance (page 124), except the- 
 value of unsold property, which is taken from the inventory 
 at the end of the Day Book. 
 
 %■ 
 
 1. STATEMENT OF RESOURCES AND LIABILITIES. 
 
 Analysis of Accounts that show Resources and LiabilUieSj for tht 
 purpose of aaurtaimng tht Net WorUh w Insolvency of the 
 Business. >« 
 
 \%n. 
 
 >ofled 
 
 rrow- 
 
 far as 
 ible 
 
 Ijinent 
 lent, 
 
 \lts of 
 8 the 
 busi- 
 bo re- 
 jdger. 
 t and 
 plain 
 lannot 
 
 1. F&OM IiTTBirxouss. 
 
 Flous, unsold, a» p«r Inventoxv - 
 Whmai, ** " " 
 
 2. Fbom LiDou Accounts. 
 
 Oabh, Dr. Amount received 
 " Or. " paid out 
 
 . $5725 60 
 . 3176 60 
 
 ii 
 
 Difference, Amount on hand 
 Bills Rso'iuji Dr. Other people's 
 
 notes Teceived $1745 00 
 ** " Or. Other people's 
 
 notes divpuaed of .295 00 
 
 « 
 
 " P ifforenoe, others' notes on hand 
 
 Bills Patabl.. Or. My notes issued 92165 00 
 
 Dr. " redeemed 860 00 
 
 «< 
 
 It 
 
 ** DiflefleiMe,aiT outstanding notes 
 
 125 
 
 BfOaoaroM. 
 
 3916 
 1120 
 
 2550 
 
 00 
 00 
 
 00 
 
 1450 
 
 00 
 
 LUbiUtiM. 
 
 1315101 
 
 
 4; f 
 
BOOK-KEEPINQ. 
 
 If* 
 
 Jm. Rimmer, Dr. My Aoot. against 
 
 him - - ^030 00 
 " " Or. His Acct. acainst 
 
 V me - - 100 00 
 
 " ** Diffarence, he owes me 
 
 W. Lingham, Cir. His Acct. against me — I 
 
 owe him 
 
 H. Corby, Cr. His Acct. against mo $3000 00 
 
 Dr. My '* him 2000 00 
 
 <4 
 
 ** Differenoe, I owe him 
 ' Fresmt Net Worth - 
 
 RMOurcei. 
 
 2930 
 
 11965 
 
 00 
 
 LlabiUtiM. 
 
 I 
 
 100000 
 
 1000 
 8650 
 
 00 
 
 11965 
 
 00 
 00 
 
 00 
 
 2. STATEMENT OF LOSSES AND GAINS. 
 For the purpose of ascertaining the Net Gain or Loss, 
 
 Floub, unsold, per Inventory 
 ** Cr. or Droceeds from sales 
 
 •* Total proceeds 
 " Dr. or coat- 
 
 $3915 00 
 3900 00 
 
 7815 00 
 7265 00 
 
 Gaiiia. 
 
 ** Difference or gain - - - 
 Wheat, unsold, per Inventory - 1120 00' 
 , ** Cr. or proceeds from saloa- 2206 OOj 
 
 it 
 1* 
 
 Total proceeds 
 Dr. or cost 
 
 3325 001 
 3060 00 
 
 " Difference or gain 
 Expense, Dr. or outlay, a loss 
 
 IHjferewe bttween Oains and Losses, or Net Gain 
 
 Proprietor** Net InTestment - - $8000 50 
 " Net Gain ... 649 50 
 
 Present Net Worth - $8650 OOi 
 
 12« 
 
BOOK-KEEPINO. 
 
 The following arrangement also is recommended to the 
 pupil for practice, as it approaches very nearly to the form 
 observed in closing the Ledger accounts, and will, therefore, 
 serve to prepare him for that work. 
 
 T 
 
 1 i 
 
 
 00 
 
 3. ASSETS AND LIABILITIES. 
 
 Flour on hand 
 
 Wheat 
 
 Cash '• 
 
 Bills Rec. " 
 
 James Rimnier owes me . 
 
 3915 00 ; Bills Payable (outstatidiiiR) 
 1120 00 'I owe W. L'ngham 
 2650 00 " H. Corby 
 1450 00: 
 2930,001 
 
 Net Worth mm 
 
 1196fi|00! 
 
 Net Worth 
 
 8650 
 
 8660 
 
 00 
 
 00 
 
 Investment. 
 Net Gain . 
 
 i£if.;oo 
 
 1000 00 
 lOOo 00 
 
 8315 00 
 8650 00 
 
 11965i00 
 
 4. LOSS AND GAIN. 
 
 Expense 
 Net Oain 
 
 •• »• •• 
 •• •• •• ' 
 
 165 
 649 
 
 50 
 50 
 
 00 
 
 1 
 
 lOain on Flour 
 
 1 " Wheat 
 
 •t •• •• 
 •• •• •• 
 
 650 
 265 
 
 00 
 00 
 
 
 816 
 
 816 
 
 00 
 
 i 5. STOCK. 
 
 8000 
 049 
 
 8660 
 
 50 
 60 
 
 00 
 
 )0 00 
 
 00 
 
 The pupil will test his familiarity with the forejsjoing in- 
 ■tructions by rendering analyses or statements of Losses and 
 Gains, and of Resources and Liabilities, from the tollowing; 
 exercises. He will do well to arrange them according to iorms 
 1 and 2, and also according to forms 3, 4 and 5. The latter 
 method will specially prepare him for closing the Ledger. 
 
 If properly worked out the result will be as given imme- 
 diately after each Trial Balance* 
 
 lit 
 
 16 00 
 
 4 ' 
 
 ,1 'I 
 
 117 
 
In : ' 
 
 BOOK-KEEPINO. 
 
 6. TRIAL BALANCE. 
 
 r« 
 
 M 
 
 Dr.Bd. 
 
 Dr. FooVgt. 
 
 Eel 
 1 
 
 
 Cr. Foot'grs. 
 
 1 
 
 Cr.Bd. 
 
 • 
 
 
 150 00 
 
 Stock - - - 
 
 7500 
 
 00 
 
 7350 
 
 00 
 
 1044 
 
 27 
 
 4170 17 
 
 2 
 
 Mdse (nnaold $2000) - 
 
 3125 
 
 no 
 
 
 
 lr,•^2 
 
 17 
 
 5750129 
 
 3 
 
 Cash - - - - 
 
 4218 
 
 12 
 
 
 
 5()0 
 
 00 
 
 500100 
 
 4 
 
 liobert Baker - 
 
 n- , 
 
 
 
 
 
 
 
 
 
 Real Estate (unsold 
 
 
 
 
 
 6(185 
 
 •K) 
 
 7000'OOi 
 
 5 
 
 $(1900)* - 
 
 315 
 
 00 
 
 
 
 100() 
 
 00 
 
 150000 
 
 6 
 
 Bills Receivable 
 
 500 
 
 0(» 
 
 
 
 
 
 400=00 
 
 7 
 
 Bills Payable - 
 
 1200:00 
 
 800 
 
 00 
 
 79 
 
 25 
 
 154125 
 
 8 
 
 Geo. Ritchie & Co. - 
 
 75 
 
 00 
 
 
 
 1061 
 
 00 
 
 1200 00 
 
 9 
 
 Warner Bros. - 
 
 139 
 
 00 
 
 
 
 375 
 
 00 
 
 375!00 
 
 10 
 
 Expense - - - 
 
 
 
 
 
 
 
 1400:00 
 
 11 
 
 N. Jones - - - 
 
 2100 
 
 00 
 
 700 
 
 00 
 
 
 
 
 
 12 
 
 Hunt & Co. 
 
 170100 
 
 170 
 
 00 
 
 45 
 
 00 
 
 120 
 
 00 
 
 13 
 
 Tpiterest andDiscountf 
 
 76100 
 
 
 
 
 
 
 
 14 
 
 W. P. Graham - 
 
 3601 
 
 69 
 
 3601 
 
 k>9 
 
 300 
 
 00 
 
 300 
 
 00 
 
 15 
 
 Loss and Gain • 
 Equilibrium — ^ 
 
 
 71 
 
 
 
 12631 
 
 69 
 
 33019 
 
 71 
 
 23019 
 
 12631 
 
 69 
 
 V^: 
 
 Net Car ::al at commencing, $735Qi 
 
 Net Gain, $450.73. 
 
 Net Capital at closing, $7800.73. 
 
 * Real Kstete, Baflnad itoek, and all Bpeealatira p roperty aeeoonla ara traated Hka 
 Marcbandlaa aoommt. 
 
 t Tnterett and Diaeoant contains on the Dr. aide the cost of the tut ^ mwMi^ 
 f ranted to us, and on tiia Cr. nide what the tM« o/marMj/ granted to otbera predaeea aa 
 The dlflerenoe.tlUN(ora. showa a J0M or flam, aa the eata mar ba. 
 
 *•' 
 
 \w 
 
. -'11 
 
 BOOK-KEEPING. 
 
 7. TEIAL BALANCE. 
 
 
 
 1 
 
 Dr. 
 
 II 1 lain ' 
 
 Cr. 
 
 1 
 
 S. G. Beatty {Fwrtmr)* - - - - 
 
 sooo 
 
 00, 
 
 16868 
 
 13 
 
 2 
 
 S, Clare (Far^ter)* 
 
 
 1 
 
 12000|00 
 
 3 Cash - ' 
 
 0732 
 
 lo! 
 
 4719122 
 
 4 Merchandise (Value, uiisold, §5159.50) 
 
 7:^50 
 
 oo; 
 
 3719150 
 
 5|Railr()ad Stock ( Vahie uimoLd, ^512000) 
 
 12000 
 
 oo; 
 
 
 
 6 Bills Receivable 
 
 7000 
 
 00 
 
 5000|00 
 
 7 Bills Payable ----;- 
 
 3180 
 
 00, 
 
 cisooo 
 
 SiReal Estate (FaiwewwoZdjISOOO) - 
 
 7500 
 
 00, 
 
 150100 
 
 9 
 
 Robertson & Henry 
 
 1150 
 
 00. 
 
 920100 
 
 10 
 
 G. C. Holton & Cu. 
 
 
 i 
 
 1500 00 
 
 11 
 
 Expense - * - - - - - 
 
 125 
 
 00 
 
 1 
 
 12! Interest 
 
 28 
 
 00 
 
 1325 
 
 13JW. V;. Jon«» - - - 
 
 1705 
 
 00 
 
 795 00 
 
 14 John Cook ------ 
 
 1290 
 
 00 
 
 84000 
 
 15 
 
 Conger Bros. ------ 
 
 
 ]0 
 
 1450 
 
 00 
 
 
 54160 
 
 54150 
 
 10 
 
 S. G. Beatty'g Net Capital at commencing, $13863.13. 
 S. Clare's Net Capital at commencing, $12000. 
 Total Net Gain, $2039.25 ; each Partner's share of Gain, 
 I1019.62J. 
 
 S. G. Beatty's Net Worth at closing, $14882.76. 
 S. Claid's Net Worth at cloiiug, $13019.63. 
 
 m 
 
 ft 
 
 m 
 
 M'-^ 
 !-]■> 
 
 r:ir' 
 
 
 .; m 
 
 CLOSING THE LEDGER. 
 
 It was thought best for the present to leave the Ledger of 
 this set in its open condition, and show the results of the 
 business in separate statements. When the object is simply to 
 know the condition and progress of the business, thia method 
 is sufficient, but when it becomes necessary to mark these in 
 
 *The Partners* Moonnts ar« treated preciHely the same aa Stock aooount. An 
 aocount ia opened for each partner in hi8 own name, and each one's ahara of the net 
 fStAn er net lowi carried to it. In thin instance divide the gain equally. 
 
 I 129 
 
r^ 
 
 BOOK-KEEPING. 
 
 some enduring manner upon the Ledger, the accounts must be 
 closed. 
 
 To close an account is to bring its current condition to 
 an end. If both sides are ah'eady equal, write the amount on 
 both sides, on the same level, and rule off, us in the closed 
 Ledger following. If there is only one item on each side, and 
 both are equal, simply rule off. If both sideis are not equal, 
 make them so by entering the difference between them on the 
 smaller side, and then write the amount on both sides, and 
 rule off as before. 
 
 Speculative property accounts, as Flour, Merchandise gene- 
 rally. Bank Stock, Railroad Stoclv. and Real Estate, cannot be 
 closed, if any property remain; Ad, until the value o ' what 
 remains on hand is entered o). e Jr. side. The object of 
 these accounts is to show the gain or loss arising from the 
 buying and selling of these ui icrent kinds of property, and it 
 is evident this cannot be ascertaine.!, if t-.i^; oroperty is not all 
 sold, without taking into consideration tije v^lue of what re- 
 mains unsold. After this is entered on the Cr. side, then the 
 difference between the two sides will show the gain or loss, as 
 the case may be ; and the account will be closed by writing 
 this difference on the smaller side. 
 
 By "dosing one account into another," as Loss and Gain 
 into Stock, is meant that the difference entered on the smaller 
 side of the former to close it, must at the same time be trans- 
 ferred to the opposite side of the latter. And as, in making en- 
 tries of transactions, the name of the contra account is written, 
 so in these closing entries, in each accouut beitig closed, the 
 name of the account being closed into is written ; and, accord- 
 ingly, in making the transfer entry, the name of the account 
 transferred from is written. Hence, the closing entry in any 
 account refers forward to the account to which it has been 
 I ransferred, and the entry in the account closed into refers hack- 
 loard to the account from which it has been taken. 
 
 The pupil will see from this the reason why, in entering the 
 value of unsold merchandise on the Cr. side of Merchandise 
 account, he writes ^^ By Balance." It is simply because, 
 these goods being an asset, their value must be entered also in 
 Balance account. He must carefully guard against supposing 
 that this entry in the Merchandise accouni is the difference 
 between the two sides ; and he will do well to remember that, 
 although the word ''balance'* ordinarily sigiuties the difference 
 between the two sides, in these closing entries it must be cun- 
 
 130 
 
V BOOK-KEEPING. 
 
 •idered to mean simply " Balance Account" Hence, any entry, 
 closing or otherwise^ which is to be transferred to Balance account 
 will be written ** To " or " By Balance," and any entry, closing 
 or otherwise, which is to be transferred to Loss and Gain ac- 
 count will be written " To " or " By Loss and Gain." 
 
 The pupil should not forget that in no one thing does the proficiency 
 of a practical accountant more plainly manifest itself than in the matter 
 of neatness in arrangement and execution. He should observe particu- 
 larly the form adopted in ruling, which is usually done with red ink. 
 It is also advisable to write the adjusting and closing entries in red ink, 
 to distinguish them more readily from entries of transactions, the trans- 
 fers being made in black ink. 
 
 I: 
 
 ORDER OF CLOSING THE LEDGER. 
 
 The pupil will be much assisted in understanding the pro- 
 cess of closing the Ledger accounts, if he will remember that 
 the object is to place in a permanent form in the Ledger the 
 same results as have been shown in the preceding statements ; 
 and, more especially, if he bears in mind the i( rms, Nos. 3, 4, 
 and 5, as these very nearly accord with the arrangement in the 
 Ledger. The only difference in the headings is, that the 
 one there called " Assets and Liabilities," will be here callod 
 *' Balance " account. Stock account is already in the Ledger, 
 and in the course of business it is not improbable that *Los8 
 and Gain account would be required for some entry which 
 cannot properly be made any where else. 
 
 The posting having been found correct by taking a Trial 
 Balance, and by careful checking, the following order may be 
 observed : — 
 
 L Open an account in the name of Loss and Gain (if tiiere 
 is not one already), into which to collect all the losses and gains, 
 and one in the name of Balance, into which to collect all the 
 assets and liabilities. 
 
 IL Enter on the Cr. side of Flour, Wheat, or any speculative 
 property account, the value of such property unsold (as found 
 by taking stock), writing in red ink, " By Balance, Inventory," 
 and transfer the amount in hlack ink to the opposite, or Dr., 
 side of Balance account, writing ** To Flour," " To Wheat," or 
 whatever the name of the account is from which the transfer 
 is made. 
 
 in. Close Private account into Stock. 
 
 lY. The remaining accounts will show either an a>«et or a 
 
 131 
 
 
 M 
 
 -I 
 
r 
 
 BOOK-KE£PINQ. 
 
 !S 
 
 
 I 
 
 liability, a loss or a gain. Close every account whose difference 
 represents an as?,d or a liability into Balance account, and 
 every account whose difference represents a loss or a gain into 
 Loss and Gain account. 
 
 V. Three accounts now remain open — Stock, Loss and Gain, 
 and Balance. Take a Trial Balance of these to test the 
 accuracy of the transfer entries. 
 
 YI. Close Loss and Gain into Stock ; and Stock into 
 Balance. 
 
 VIL Balance account will now have both sides equal, and 
 •rill be closed by simply footing, and ruling off. 
 
 Ill 
 
 PARTICULAR DIRECTIONS FOR CLOSING THE 
 
 LEDGER OF SET L 
 
 ' - \ '■ " . ^ 
 
 We will now take the pupil through the procesi of closing 
 the Ledger of Set I., according to the instructions just given. 
 
 I. We first open Loss and Gain account and Balance 
 account. 
 
 II. We then ascertain from the Inventory (which, for con- 
 venience, we have here put at the end of the Day Book), the 
 value of the goods unsold. The unsold Flour, in this case, is 
 worth $3915, and the unsold Wheat $1120, which amounts we 
 enter on the Cr. side of these accounts in red ink, " By Balance, 
 Inventory," and transfer the same immediately to the contrary, 
 or Dr. side, of Balance account, making the entries in black 
 ink, "To Flour, $3916," and " To Wheat, $1120." 
 
 The accounts are now in a conditibn^to be closed either into 
 Stock, Loss or Gain, or Balance, as the case may be. 
 
 III. We have not in this set a Private account distinct from 
 the Stock account.. 
 
 IV. We then come to Cash. The difference represents a 
 resource or an asset of cash in hand, $2550. We enter this in 
 red ink, on the Cr. side, writing " By Balance," foot up the 
 sides, and draw double red lines underneath. This red ink 
 entry is at once transferred to the Dr. side of Balance account 
 in black ink. 
 
 Bills Receivable shows an asset, and is closed, like Cash, into 
 Balance account. 
 Bills Payable is also closed into Balance, the difference show- 
 
 132 
 
. ^ BOOK-KEEPING. 
 
 !ng a liability. The closing entry yi this case falln on the Dr. 
 side of Bills Payable, and the transfer entry, consequently, on 
 the Cr. side of Balance. 
 
 We now come to the Personal accounts. All these accounts, 
 if there be any difference between their two sides, will show 
 either an asset or a liability, as the case may be, and will 
 therefore be closed into Balance, in the same manner as those 
 already closed. Robert Thompson's account already balances, 
 and we close it by simply footing and ruling it. 
 
 Flour account shows a gain, the Cr., or proceeds from sales, 
 together with the value of the flour still on hand, being greater 
 than the Dr. or cost. The difference is entered in red ink on 
 the Dr. side, writing "To Loss and Gain, $550;" and trans- 
 ferred to tlie contrary or Cr. side, of Loss and Gain, writing in 
 black ink, ** By Flour, $550." Wheat account is closed in the 
 same way. 
 
 Expense account, being outlay for which no direct return if 
 received, and, therefore, so far diminishing the gross gain on 
 Flour and Wheat, is counted a loss. It is closed by writing, 
 on the Cr. side, "By Loss and Gain, $165.50," the transfer 
 being to the Dr. side of Loss and Gain. 
 
 V. We have now the results of all the accounts exhibited 
 under the heads of Loss and Gain and Balance, and if the 
 transfers have been correctly made, these two accounts, to- 
 gether with the unclosed Stock account, must be in equilibrium. 
 To test this, we next take a Trial Balance of these three ac- 
 counts, which we call the 
 
 ' i 
 
 
 J:'-: , 
 
 m 
 
 into 
 from 
 
 Dr. 
 
 1C6 
 11965 
 
 1213050 
 
 50 
 00 
 
 Second Trial Balance. 
 
 Cr. 
 
 Stock - 
 Loss and Gain 
 Balance 
 
 m 
 
 m 
 
 [, into 
 ahow- 
 
 '' After proving by this test that the differences have been 
 properly transjerredj we proceed to accomplish the grand object 
 of closing the Ledger accounts, by carrying the difference be- 
 tween the two sides of Loss and Gain account, or, in this case, 
 net gain of $649.50, to the Cr. side of Stock account / 
 
 It- 
 
 ■*- 
 
 •it 
 
 in 
 
BOOK-KREPINO. 
 
 1 1 
 
 i! 
 
 The Stock account now contains on the Or. fii<]«^, thn cnpitil 
 invested and the net <<ain since. The absence ufany entry on 
 the Dr. side shows that there were no liabilities at the be- 
 ginning, and tliat no capital ha.>^ l)een withdrawn. The differ- 
 ence between the two sides is, therefore, just what tlie Cr. side 
 amounts to, and represents the presejit net worth. I'he Balance 
 account contain':, on tlie Dr. side, the prusent ^t.s'.v./s, and on the 
 Cr. side the preufnt liahilHies, the difference beiii<^f the jnc.sent 
 net wmth. Flence, whatever amount cl(»s(!.s Suiclc will jilfio 
 close Balance. Close Stock into Balance, both sides of which 
 will now be equal. Add up and rule off. 
 
 The pupil must not suppose thai, when a merchant wishes to asiiortrvin Ills financial 
 positimi, ho makes n. format doming of hin Liulijcr, and for the eoiiliiumiico of his 
 bUHinesH operrn another Ledger, conimciiciii^r witli tlio ansots and liabtiilieH, as Hhown in 
 the Balance account of his forincr Ledi^cr. Inbtt^ad of that, all the entries which wn 
 have transferred to Halanco ac<;ount would be bmutrht down, oiich in its own account, 
 on the opposite side from Dial on which it falls, thii.s bo^innin^; ttiu account anew. 80 
 that, If the Balance account be kfpt in the Lnd:j:or, its oiitnws wtnild not bo dirext 
 transfers of the closinjj ontrias, but simply an inventory f)f the ontrios l)rou{fht down 
 to commence the accounts ftfrcsb. As a cijniplete double entrjt is efToclod by the bring- 
 ing down of the various dincrences showing assets and liabilities, the I lalance account 
 may be considered as not a necessary pari of the Ledger, and may be kapt at the end 
 of the Ledger, or in a separate book. We liavc used it for its convenience in collecting 
 the assets and liabilities at once from those accounts which show theni. 
 
 The differences of tlie Loss and Gain accounts are, tbrouj^li tlie medium of the Long 
 and Gain Accounr, yinaWy ditiposed of in the Stock A.-uouni, their effeet appMr^ 
 Ing in ih* altered Net Capital, as brought dowu in Stock icoouut (0 biigin it anew. 
 
 m 
 
BOOK-KEKPINQ. 
 
 Da. 
 
 SPECIMEN LEDGER, CLOSED. 
 
 £ce Explanation, beginning Page 129. 
 STOCK. 
 
 Ok. 
 
 1877 
 Jan. 
 
 2i)To Baiance 
 
 865000 
 
 86C000 
 
 1877 
 Jan. 
 
 1 
 20 
 
 By Sundries* 
 " Loss & Gain 
 
 CASH. 
 
 1877 
 
 
 Jan. 
 
 1 
 
 it 
 
 4 
 
 it 
 
 6 
 
 ii 
 
 11 
 
 a 
 
 15 
 
 ti 
 
 t( 
 
 l( 
 
 i7 
 
 
 ', 
 
 
 \ 
 
 
 
 To Stcck 
 " J. Rimmer 
 " Wlieat 
 
 (( 
 
 R. Thomp- 
 
 son 
 " Bill»Reo. 
 
 a it 
 
 400050 
 10000 
 12500 
 230,00 
 
 97500 
 175,00 
 120,00 
 
 572550 
 
 '1877 
 Jan. 
 
 it 
 
 <c 
 (( 
 (( 
 ({ 
 
 2 By Flour 
 
 3 " Wheat 
 
 <( 
 
 (( 
 
 9 *' Expense 
 10 " H. Corby 
 '' Bills Pay. 
 
 12 
 15 
 18 
 20 
 
 " Expense 
 " BaUmcA 
 
 BILLS RECEIVABLE. 
 
 8000150 
 64950 
 
 1866000 
 
 30000 
 
 30000 
 
 56000 
 
 25 i 
 
 1000 ( 
 
 650 1 
 
 200 i 
 
 14000 
 255000 
 
 5725 
 
 50 
 00 
 00 
 00 
 
 50 
 
 ^1 
 
 J-' 
 I- 
 
 .1. 
 
 ■ ,1' 
 
 ■1:1 
 
 
 .ii 
 
 1877 
 
 1 
 
 Jan. 
 
 4' 
 
 t< 
 
 5 
 
 it 
 
 8 
 
 (1 
 
 11 
 
 
 f 
 
 4 To Wheat 
 
 ti li 
 
 " J. Miller 
 " Wheat 
 
 175 
 
 12000 
 
 130000 
 
 15000 
 
 174500 
 
 00 
 
 1877 
 
 Jan. 
 it 
 
 n 
 
 15 
 17 
 20 
 
 By Cash 
 
 (( 
 
 (( 
 
 ** Balance 
 
 17500 
 
 12000 
 
 145000 
 
 174500 
 
 * Sundries, mMuiingr MTenl things, sUnds for the three Moounta, Cash, Flour and 
 Wheat. 
 
 136 
 
 •.- 
 
 :- i 
 
 
 i 
 
 
 
 
 'i 
 
 'l 
 
 ■ 
 
 ' i' 
 
 
 ■\ 
 
 J 
 
 J 
 
!T 
 
 BOOK-KEEPING. 
 
 '. I 
 
 I>E. 
 
 .♦ 
 
 BILLS PAYABLE. 
 
 0». 
 
 1877 
 
 
 
 
 t 
 
 
 1 
 
 1877 
 
 
 
 - — 
 
 1 
 
 Jan. 
 
 12 
 
 To 
 
 Gash 
 
 3 
 
 650 
 
 oo' 
 
 Jan. 
 
 2 
 
 By Wlieat 
 *^ FL.ur 
 
 1 
 
 200 00 
 
 <t 
 
 15 
 
 (( 
 
 (( 
 
 3 
 
 200 
 
 00' 
 
 n 
 
 3 
 
 1 
 
 05000 
 
 « 
 
 20 
 
 (1 
 
 Balance 
 
 
 1316 
 
 oo! 
 
 4( 
 
 12 
 
 <( n 
 
 3 
 
 31500 
 
 
 
 
 - . 
 
 
 
 
 n 
 
 10 
 
 *• II. Corby 
 
 3 
 
 1(KX)00 
 
 
 2165 
 
 00 
 
 1 
 
 216500 
 
 1877 
 Jan. 
 
 it 
 
 u 
 « 
 
 2To Wheat 
 
 Si " " 
 
 13 
 17 
 
 " Flour 
 
 JAMES PTMMER. 
 
 150100 
 
 28o;oo 
 
 1400100! 
 120000 
 
 303000 
 
 1877 
 Jan. 
 
 «( 
 
 4lBy Cash 
 20 " BaUinct 
 
 10000 
 293000 
 
 303000 
 
 W. IINGHAM, 
 
 1877 
 Jan. 
 
 20ToJ3a2ance 
 
 1000 00 
 
 100000 
 
 1877 
 
 Jan. 
 u 
 
 10 
 17 
 
 By Wheat 
 
 ROBERT THOMPSOIT, 
 
 45000 
 66000 
 
 100000 
 
 I 
 
 1877 
 
 Jan. 
 « 
 
 To Wheat 
 
 it 
 
 11877 
 600'OOllJan. 
 37500 
 
 975 
 
 00 
 
 136 
 
 15 
 
 ByCaah 
 
 97600 
 
 97500 
 
# 
 
 JkL 
 
 BOOK-KEEPING. 
 H. CORBY. 
 
 Ob. 
 
 ** !16 
 
 J877i 
 Jan.lOToOash 
 
 ** Bills Pay. 
 ^ Balance 
 
 lOOOiOO 
 1000:00 
 1000,00 
 
 300000 
 
 1877 
 Jan. 
 
 6 
 
 By Flour 
 
 300000 
 
 300000 
 
 
 JAMES MILLER. 
 
 1877 
 Jan. 
 
 To Flour 
 
 J. 
 
 By Billa Reo. 
 
 FLOUR 
 
 1877 
 Jan. 
 
 n 
 « 
 
 stock 
 Cash 
 3J ** Bills Pay. 
 6 " H. Corby 
 12' " Bills Pay. 
 20 " LtrndbOain 
 
 3000100 
 300|00 
 650i00 
 
 3000j00 
 315;00 
 66000 
 
 7815 
 
 00 
 
 1877 
 
 Jan 
 
 (( 
 
 It 
 
 6 
 13 
 17 
 20 
 
 130000 
 
 By J. Miller 
 ** J. Rimmer 
 
 it 
 
 n 
 
 " BaL Inv't'y 
 
 130000 
 140000 
 120000 
 3U1500 
 
 781600 
 
 WHEAT. 
 
 1877 
 
 1 
 
 
 
 1 
 
 1877 
 
 
 
 
 
 
 Jan. 
 
 1 
 
 To Stock* 
 
 1 
 
 1000 
 
 00 
 
 Jan. 
 
 2 
 
 By J. Rimmer 
 
 1 
 
 150 
 
 00 
 
 
 2 
 
 " Bills Pay. 
 
 1 
 
 200 
 
 00 
 
 (( 
 
 3 
 
 " R Thomp- 
 
 1 
 
 600 
 
 00 
 
 
 3 
 
 " Cash 
 
 1 
 
 300 
 
 00 
 
 
 
 son 
 
 
 
 
 
 6 
 
 « <i 
 
 2 
 
 660 
 
 oo" 
 
 tt 
 
 4 
 
 " Bills Reo. 
 
 2 
 
 175 
 
 00 
 
 
 30 
 
 ** W.Lingham 
 
 2 
 
 45000 
 
 ti 
 
 5 
 
 tt it 
 
 2 
 
 120 
 
 00 
 
 
 17 
 
 tt ic 
 
 3 
 
 55000 
 
 tt 
 
 6 
 
 " Cash 
 
 2 
 
 125 
 
 00 
 
 
 20 
 
 " Losad:Qavn 
 
 
 265100 
 
 it 
 
 8 
 
 " J. Rimmer 
 
 'A 
 
 280 
 
 00 
 
 
 
 r , " 
 
 
 
 
 tt 
 
 9 
 
 " R. Thomp- 
 son 
 
 2 
 
 375 
 
 00 
 
 
 
 
 
 
 
 it 
 
 11 
 
 " Sundries 
 
 3 
 
 380 
 
 00 
 
 
 
 i 
 
 
 
 
 « 
 
 20 
 
 " Bal. Inv'fy 
 
 * 
 
 
 1120 
 
 00 
 
 
 3325 
 
 oo| 
 
 3326 
 
 00 
 
 137 
 
 '0' 
 
 II 
 
 ; I t..- 
 
 f 
 
 \l 
 
f 
 
 Db. 
 
 BOOK-KKEPINO. 
 EXPENSE. 
 
 r 
 
 (hu 
 
 . 1877 
 ^^ Jan. 
 
 18 
 
 To Cash 
 <« (i 
 
 20 By XoM & Omn 
 
 165 
 
 50 
 
 165 
 
 50 
 
 (Losaos.) 
 
 1877 
 
 Jan 
 it 
 
 20 To Expense 
 '* Stock 
 
 LOSS AND GAIN. 
 
 (Gains.) 
 
 1877 
 165 50 Jan. 
 649150 " 
 
 20 By Flour 
 " " Wheat 
 
 550'00 
 26500 
 
 81500 
 
 (Resources.) 
 
 1877 
 
 
 Jan. 
 
 20 
 
 << 
 
 U 
 
 << 
 
 (( 
 
 « 
 
 <( 
 
 u 
 
 « 
 
 To Cash 
 
 " Flour 
 " Wheat 
 ". Bills. Rec. 
 ** J. Bimmer 
 
 BALANCE. 
 
 (LkbUities.) 
 
 |!1877 
 2250:00 Jan. 
 3915 00 '* 
 112000 
 145000 " 
 293000 " 
 
 1196500 
 
 20 By Bills Pay. 
 " " W. Ling- 
 
 I ham 
 
 ((; (< 
 
 H. Corby 
 
 " " Stock 
 
 1315100 
 100000 
 
 1000 
 865000 
 
 00 
 
 1196500 
 
 NoTK. — In all those accounts whose difference shows an asset ^r a liahility, an excess 
 of the Dr. side represents an asset, and an excess of the Cr. side a liability. As the 
 dosing entry is the excess of the larjj^er over the smaller side, an<I as this entry is placed 
 on the smaller side, and transferred to the o|)posite side of R.ilance, it is evident that 
 the transfer in Balance must fall on the sania side as the excess of the account from 
 which it is taken. Hence, if the excess be on the Dr. side, the transfer entry will be 
 on the Dr. side of Balance, and if the excess is on the Cr. side, the transfer will fall on 
 the Cr. side of Balance. Therefore, the Dr. side of Balance contains the assets, and 
 the Cr. side the liabihties. 
 
 It may be similarly observed of the loss and gain accounte, that the excess, on what- 
 ever side of the acct.unt it la. will fall upon the same side of Loas and Gain account 
 And as an excess of Cr. in all these accounts shows a gain, and an excess of Dr. a \ons, 
 •o the losses fall upon the Dr. side of Loss and Qain account, and the gains on (he Or. 
 
 pld«b 
 
 IM 
 
I 
 
 r ■' 
 
 \} 
 
 550'00 
 265 00 
 
 1315;00 
 lOOOjOO 
 
 100000 
 8660,00 
 
 11965,00 
 
 I. an excess 
 v. As the 
 
 ly Is placed 
 Irident that 
 fount from 
 Iry will he 
 m fall on 
 ssets, and 
 
 k on what- 
 ■n account 
 [Dr. a los9i 
 ih« Cr, 
 
 BOOK-KEEPING. 
 
 DETECTION AND CORRECTION OF ERRORa ' 
 
 The Trial Balance is the best short test of correctness in 
 posting yet discovered, and this is defective, inasmuch aa 
 errors may exist while the Trial Balance is apparently entirely 
 correct : — such as posting to the wrong account, although on 
 the right side ; omitting to post a debit and a credit of equal 
 amount, &c. But if the Trial Balance is not in equilibrium, 
 thfie is certainly an error, which must be sought and corrected 
 
 Detection. — First. See whether ihe pencil footings on the 
 Ledger, preparatory to taking the Trial Balance, are correct, and 
 whether the balances of the diflfereiit accounts have been trans- 
 ferred into the Trial Balance rightly. 
 
 Second. If there is still an undiscovered error, examine each 
 post separately, checking the entries in both Journal and Led- 
 ger as you proceed, until you have been over the whole ; and 
 then look through Mgain, to see if any amount remains un- 
 checked, and, if so, investigate the cause of the omission. 
 
 In this manner, you can scarcely fail to discovei- the mistake, 
 provided the Journal is correct ; but great care should be taken 
 to see that the Journal is in equilibrium before posting, as any 
 discrepancy there will give you much trouble in th^; Ledger. 
 
 Correction. — In the Day Book {or any other book of 
 original entry), erasures are inadniis.-^ible, sin<e this book is 
 taken as evidence in courts of justice, and anything obliterated 
 or erased looks suspicious, and would probably render invalid 
 the entry with which it is connected,, and in some cases might 
 even throw the whole book out of court, as evidence unfit to 
 receive. Errors in it should therefore be corrected by making 
 other entries explaining them ; or the erroneous entry, if it 
 has not been journalized, may be marked " void," and remain 
 without further alteration, a new and correct entry being made 
 of the transaction. 
 
 In the Journal, erasures are sometimes admissible, although 
 it is generally advisable to treat errors as directed for the Day 
 Book. 
 
 In the Ledger, if any entry be posted to the wrong ac- 
 count, make ciphers of the figures, and leave the remainder so 
 as not to deface the Ledger ; then post the entry to its proper 
 place. If a wrong amount be posted, alter it to the right. 
 And if a duplicate post be made, mn-ke ciphers of the figures 
 in the erroneous one. If two accounts be opened with the 
 
 13tf 
 
 ■!l 
 
 !l? 
 
Ir 
 
 BOOK-KIIPINO. 
 
 ^ i ■ . 
 
 same person, close the one into the other, ''To" or "By" 
 name of account, page — footing and ruling off the closed ao* 
 count, as a settled account ; stating the particulars of each V, 
 transfer in the open acoount 
 
 \ 
 
 QUESTIONS FOR REVIEW. 
 
 W^ 
 
 i 
 
 ii 
 
 H 
 
 What two results should a eomplete set of accounts furnish the means 
 of asoertaining ? In what way is the net capital found by Single Entry ? 
 What two ways does Double Entry furnish of finding the net capital ? 
 Name the most usual kinds of assets — liabilities — sources of gain — 
 sources of loss. Name the accomUa kept to show assets and liabihties — 
 losses and gains. Which of these accounts does the Single Entry Led- 
 ger strictly contain ? What two subsidiary books along with the Single 
 Entry Ledger will generally give the whole of the assets and liabilities 
 except that of goods unsold f How is the value of the merchandise on 
 hand ascertained in mo^t businesses, botli iu Single and Double Entry ? 
 How does the Single Entry Ledger differ from that of Double Entry, 
 even when the former is supplemented by tlie Cash Book and Bill Book ? 
 In what respect chiefly may bingle Entry be considered an imperfect, and 
 Double Entry a perfect, system of account -keeping ? What is the fun- 
 damental principle of Book-keeping by Double Entry ? Name </i« prin- 
 cipal book in a set of accounts, and describe it. State some advantages 
 of using additional books. What are the three principal books used in 
 Double Entry ? Describe the Day Book. What particulars should a 
 Day Book entry embrace ? Describe the JouruaL What is journal- 
 izing ? How would you decide when a personal account is affected, and 
 on which side i How would you determine when an account represent- 
 ing a thing {i.e., au mjuer^ona^ account) is affected, and on which side? 
 How many accounts, at least, are affected in one transaction, and how 
 many may be f .What knowledge is necessary to enable us to journalize 
 intelligently ? Why should an account be indexed as soon as opened 
 in the Ledger ? WTiat entries are made on the Dr. and Cr. side of Stock 
 account — Cash — Bills Receivable — Bills PayaV)le — Merchandise — Ex- 
 pense — James Heaton — and Bank account? What does the closing 
 entry in each of the above accounts show ? What is meant by dosing 
 an account — ^by closing one account into another? Before closing Mei- 
 chandise account, or any speculative property account, what prepara- 
 tory entry must be made, if the property is not all sold, before the 
 closing entry can be made ? What is the first thing to be done after 
 the transactions of a set have been posted ? What is a Trial Balance, 
 and how is it made out ? Although the Trial Balance may show an 
 equality between both sides of the Ledger, what chaitces of error still 
 remain ? How often should a Trial Balance be taken ? In classifying 
 accounts what two grand results are had in view ? When it becomes 
 necessary to mark the progress of the business in somo enduring man- 
 ner on the Ledger, what must be done ? Under what head are the 
 losses and gains collected ? Under what head are the assets and liabili- 
 ties coUecFtod 7 What does the difference between the two sides of Less 
 
 140 
 
BOOK-KBIPnrO. 
 
 leans 
 itry? 
 >ital? 
 ain — 
 iiea — 
 Led- 
 Single 
 ilities 
 ise on 
 ntry ? 
 Sutry, 
 Book? 
 ;t, and 
 le f un- 
 eprin- 
 atages 
 sed in 
 juld a 
 (umal- 
 |d, and 
 esent- 
 side? 
 how 
 rnalizs 
 ipened 
 Stock 
 I— Ex- 
 slosiug 
 slosiug 
 Mei 
 [epara- 
 ire the 
 after 
 ilance, 
 LOW an 
 }T still 
 lifying 
 icoines 
 man- 
 •e the 
 iabili- 
 
 ifLMS 
 
 and Oain aeoonnt flbow ? What. doe« the differenc* between the two 
 ■ides of Balance account show ? After the net gain or net loss, as the ease 
 may be, is carried to Stock account, what will the difference between 
 the two sides show ? What general principle guides us, as to the words 
 written, in making an entry, either closing or otherwise ? In entering 
 the value of unsold goods in Merchandise account, why do we write the 
 word " Balance? " Name the accounts closed into Jjoes and Gain, and 
 those closed into Balance. Into which account is Loss and Gain account 
 closed ? Give two reasons why, when all the accounts except Stock and 
 Balance are closed, the amount whicli closes Stock will close also 
 Balance. In which two accountit do we find the present net capital ? 
 In which account do we find both the prfsent and Jbrm^ financial con- 
 dition of the business? Give the order of closing the accounts. In 
 wKat direction does a clonnp and transfer entry respectively point? 
 Why is it usual and proper to write closing entries in red ink t How 
 do jon proceed to deteet and oorreot errors f 
 
 N 
 
 
 
'f 
 
 r 
 
 BOOK-KKEPINO. 
 
 
 BUSINESS SERIES. 
 
 The seti which follow, while serving as a synthetical unfold- 
 ing of the science, are intended, each in its turn, to present 
 ■ome speciality of business, and some radical feature which 
 distinctly characterizes its purpose. In presenting the trans- 
 actions, care has been taken to avoid, as far as possible, any 
 proper /arm of entry ; but, at the same time, to present the 
 jacU as clearly and unmistakably as possible. 
 
 They are intended to cover a wide field of practice, and to 
 present sufficient variety of transactions and enforcement of 
 theory to give the pupii a clear understanding of the science. 
 Each set is complete within itself, and special in its purpose 
 and teaching. Its characteristics are briefly announced at the 
 start, and as its results only, with more or less detail, are given 
 at its close, the pupil is obliged to accomplish the work of the 
 set in order to arrive at the proper result. 
 
 This mode of arrangement is calculated to throw the learner 
 upon his t.wn resources, and rescue trim from the too common 
 error of copying down the work without understanding it. 
 This feature will no doubt recommend itself to all faithful 
 students. ' 
 
 While performing the following work, remember th?t the 
 three great qualities essential to success in AccountantSiiip 
 are : — Accuracy, Neatness and Dispatch. 
 
 1^^ For the benefit of the pupil, and in behalf of economy 
 in the use of Ledger paper, the number of lines required for 
 each account will be found immediately after the set. 
 
 This apportionment, it will be borne in mind, provides for 
 the Ledger heading, and also for the necessary space to close 
 up the accounts in due form. 
 
 SET n.— GROCERY BUSINESS. 
 
 Obaraotbribtigb.— Buying and selling tor Oaah— BiuineM adTsna. 
 
 St. John's, N.B., January Ist, 1877. Invested Cash, $5000. 
 2. Bought of Geo. Wallbridge, for Cash, 5 hhds. Molasses, 
 3600 gals., at 40c., $1400. 
 
 OAimoir.— In transcribing a set to your Day Book, leaT* the column blank for tht 
 flsartion of your own folio*. 
 
 U2 
 
BOOE-KEEPINQ. 
 
 3. Sold Tho8. Goin, for Cash, 3 hhds. Molasses, 2100 gait., 
 
 at 35c., $735. 
 
 4. Sold 0. P. Holton, for Cash, 1 hhd. Molasses, 700 gals., 
 
 at 45c., $315. 
 
 5. Sold W. B. Robinson, for Cash, 1 hlid. Molasses, 700 gals., 
 
 at 40c., $280. 
 
 6. Paid Expenses in, Cash, $175. 
 
 Capitat at commencing, $5000. » 
 
 Net Loss, $245. ^ 
 
 Capital at closing, $4755. / 
 
 The following are the Ledger accounts for this set, with the num- 
 ber of lines required for eacli : — 
 
 Set II.— Stock, 6 ; Cash, 7 ; Merchandise, 7 ; Expensjc, 
 6 ', Los» AMD Gain, ti ; Balance, 5. 
 
 If 
 
 SET III. -DRY GOODS BUSINESS. 
 
 ¥. ' ■ 
 
 OHAiu(n<miBnoft.— Buying and sellings for Cash and on Penonal Account— BuiineM 
 prosperous. 
 
 Kingston, January 12th, 1877. Invested in business. Cash, 
 
 $4755 ; Merchandise, $2000. 
 13. Bought of Muir & Co., Montreal, on 3 months' credit, 4 
 
 cases, 5200 yds. Muslin, at 20c., $1040. 
 
 15. Sold Geo. Brown, on acc't, 1 case Muslin, 1300 yds., at 
 
 25c,, $325 ; 12 ps. Tweed, 420 yds., at $1.25, $525. 
 
 16. Bought of Walker & Son, for Cash, 3 cases Prints, 3210 
 
 yds., at lOc, $321 ; and 4 cases do, |3o00 yds., at 15c., 
 $525. 
 
 17. Sold H. Warren, on acc't, 6 ps. Tweed, 210 yds., at $1.25, 
 
 $262.50. 
 
 18. Sold J. S. xMiller, for Cash, 2 cases Prints, 2140 yds., at 
 
 12ic., $267.60; and 2 cases Muslin, 2600 yds., at 25c, 
 $650. 
 
 19. Bought of Geo. Brown, on acc't, 3 cases Prints, 3690 yds. 
 
 at $12c., $442.80. 
 •20. Received from H. Warren, Cash to balance acc't, $262.50 
 22. Paid sundry items of '-xiuns''. $120. 
 
 
 
BOOK-K££PINO. 
 
 ^k 
 
 Merchandise remaining unsold, valued at $3500. 
 
 Capital at cwamtncing^ $6755. "^ v 
 
 Net Gain, ^\m\. '20. 
 Capital at closing, $7836.20. 
 
 Ledger accmmis and number of lines required for each : — 
 
 Set III.— Stock, 6 ; Cash, 8 ; Merchandise, 11 ; Mum & 
 
 Co., 6 ; Geo. Brown, 6 ; H. Warren, 6 ; Expense, 6 ; Loss 
 
 AND Gain, 7 ; Balance, 10. 
 
 ^ 
 
 l!!l 
 
 ' 
 
 1 1 
 
 REMARKS ON NOTES AND BILLS. 
 
 A new feature in connection with the work of the following 
 ■ets is the computation of interest on notes and bills. The 
 oupil must not forget that three days' grace are allowed on all 
 uutea and bills, except those payable 07i demand. Those pay- 
 able at sight, as well as those payable ajter sights or after daUf 
 are subject, in Canada, to this rule. 
 
 In reckoning the number of days between one date and 
 another, the day of the first date is excluded from, and the day 
 of the last is included in, the calcuJation. Thus, 'd we wish to 
 know the number of days from September 29th to December 
 Ist^ it is evident that from the 29tli bo the 30th is one day. 
 We hx9% thereibre. 
 
 In September 1 day. 
 " October 31 dayi. 
 ** November 30 " 
 , ** December 1 day. 
 
 63 days. 
 
 A note made, or draft accepted, on the 30th September, at 
 60 days, will become nominally due on the 29th November, but 
 legally due ou the 2nd December. As the first day reckoned 
 is the day after the date of making or accepting, there are no 
 days to count in September. Therefore, we have, 
 
 In Oct. 31 days. lu. Oct. 31 days. 
 
 •• Nov. '^d " nominally due. " Nov. 30 " 
 
 " Dec. 2 " legally due 
 
 60 dayi. 
 
 63 daya. 
 
 144 
 
A» 
 
 , i) 
 
 )500. 
 
 lUIB & 
 :L0SS 
 
 llowing 
 .. The 
 1 on all 
 se pay- 
 
 ite and 
 
 the day 
 
 wish to 
 
 cember 
 
 e day. 
 
 iber, at 
 
 )er, but 
 
 ^ckoQed 
 
 are uu 
 
 lly due 
 
 ^. BOOK-KEEPING. 
 
 When the time is expressftd in months, calendar months are 
 always understood, and tlie note or bill becomes nominally due 
 in the last month of its term upon the day corresponding with 
 its date, but really payable three days after. Thus, a note 
 dated the first day of any month becomes nominally due on the 
 first day of j^ome succeeding month, and legally due on the 
 fourth. If the last month of the term does not contain a cor- 
 responding day to that of the date of the note, then the note 
 will be nominally due on tlie last day of the last month of the 
 term. Thus, four notes, at one month, and dated respectively 
 January 28th, January 29th, January 30th, and January 31st, 
 1877, would all become nominally due on the 28th February, 
 and legally due on the 3rd March. When the last day of 
 grace falls on a Sunday, or any legal holiday, the note ia pay- 
 able on the following day. 
 
 SET IV.— PRODUCE BUSINESS. ' 
 
 OBaraotiribttci.— Buying and selHnsr for Cash and on Notes— Interest taken Into eon- 
 sidontion — Comment ingp witL both Kesources and Liabilities, effecting a Gain, aad 
 dodnic with iiii:reasei. Capital. 
 
 Ilora.— The pupil will work out the interest on all noteii requiring it. 
 
 April 2nd, 1877. 
 
 I commence business to-day with the following: — 
 
 Resources. 
 
 Cash on hand $1500 00 
 
 S. Clare's Note, my favor, at six months, 
 from Dec. 2nd, 1870, with interest at 7 
 
 percent. 2500 00 
 
 Interest due to date* - - - - 58 01 , 
 
 Ltabtltty. 
 
 I owe on my Note, favor of Charles "Web- 
 ster, dated Feb. 3rd, 1877, at four months $5.58 33 
 
 S. Bought of Thos. Wills, for Cash, 600 bush. Wheat, at 
 
 $1.50. 
 4. Sold Robert Wells, on his Note, at 30 days, 400 bush. 
 
 Wheat, at $2. 
 
 * Thin item of ivf^rtgt h«ing an »88et at the oponinsr, the proprietor'!! Capital acconnt 
 must be credited with it, either undei bin own rame, or Stock, or Capital. The debit 
 may be disposed of in srverai ways. Wo may either vlelill — Ist, S. Clare ; 2nd, Interoflt 
 Receivable ; or 8rd, Interest. Th« last, althouph theoretically open to objection, is the 
 BlmpleNt, and the one cuinmoTily adopted. The pupil can take his ehoice. 
 
 J 145 
 
 i'f 
 
 / 
 
 u 
 
 
 11 
 
 r 
 
 4, 
 
 
 V' 
 
 J 
 
I 
 
 Ij. 
 
 Br 
 
 r 
 
 BOOK-KEEPINQ. 
 
 6. Prepaid ray Note, favor of Charlea Webster. Face oi 
 Note, $558.33. Discount off, 61 days at 7 pe** eent, 
 $6.53. Proceeds paid in Casli, $551.80.* 
 
 11. Received Cash of S. Clare, in full for his Note and interest. 
 
 Face of Note, $2500. Interest due to date, $62.33.t 
 
 12. Sold James Whyte, on his Note at 30 days, 100 bush. 
 
 Wheat, at $1.75. 
 
 13. Robert VVells prepaid his Note to-<i:iy. Face of Note, 
 
 $800. Discount off, 24 days, $3.68. Proceeds received 
 in Cash, $796.32. 
 
 14. Gave George Warren my Note, at 10 days, for rent of 
 
 store, $80. 
 
 16. Took out for privat. use, $30. 
 
 17. Sold A. B. Smith, for Casli, 20 hnsh. Wheat, at $1.50. 
 Inventory of Goods unsold —80 bush, of Wheat, 
 
 valued at $1.25, $100. 
 
 Net Capital at cnminencing, $3499.68. 
 
 Net Gain, $132.17; lYet Caintal at dosing, $3601.85. 
 
 Ledger Accounts and immher of lines required for each : 
 Stock, 5 ; Privati!: Account, 4 j Cash, 7 j Bills Receiv- 
 able, 6 ; Bills Payai^le, 6 ; Merchandise, 6 ; Interest, 6 , 
 Expense, 4; Loss and Gain, 6; Balance, 6. 
 
 * In thig instance we pay tlie note before due, nnfl discoup.t is allowed us. Interest 
 account '« debited for the cost of t,ho us'' qf r»«nrj/ >vceu'«d f'j/ ug, and oredited foi 
 return,t for the u:..; qf money granUd by xun. By paving trie money before it is due w« 
 give Charles Webster the use of it 61 da vs before he is entitled to it, and /or thi$ u$e thr 
 alluwance is made to uh. Hence the Journal entry is— 
 
 Billa Payable. Dr. $658 83 
 
 Cash, Cr. $561 80 
 
 interest, " 6 iS 
 
 t Our mode of proceeding here will depond upon what we did with the interest du« 
 up to April 2ud. If wfl debited Interest, the Journal ent ry l»— 
 Ctmh, Dr. 12502 S2 
 
 BillB Recoirable, Cr. $2500 00 
 
 Interest, " 62 S8 
 
 If we debited Interest ReceiTable, our Journal entry will b^ — 
 Cash, Dr. $lMi 83 
 
 Bills Receivable, Cr. $2500 00 
 
 Interest Receivable, " 58 01 
 
 Iiiterei^t, " 4 32 
 
 Or, we may flnrt debit Intereut Receivable with the IntereRt accrued gince tht op*ni*ko 
 of the hooka, thus— 
 
 Interect Reeeirablo, Dr. $4 $2 
 
 Interest, Cr. 
 And then say— 
 
 Cash, Dr. f2r)fl2 $.H 
 
 Bills Roceivnbbi, Cr. 
 Inter»\«t Receivable. " 
 If we debited 8. Clare, proceei! as aliovc, s\;bitit«ting S. (J)are for Interest Receivable. 
 The thoiigbtfulpn]>iI will obaerve tliat all (licse n-Kt'ods ome to the same t>,4iig 
 The only difference is in the miinin'r of treating the interest. The tame, ultimate retuit 
 Is produced in the Interest account, \\x..: a gain of $4.32 for interest on the note si not 
 the opening of the books. 
 
 146 
 
 $4 32 
 
 $2500 00 
 
 62 as 
 
BOOK-KEEPING. 
 
 SET v.— FURNITURE BUSINESS. 
 
 OHAkAcranranoi.— Buylnir and Helling: for r!ub. on Personal Account and on Not«*~ 
 Interest takan intii consideration— Commencini^ with a Net Capital, luiitalnlntf • 
 Loss ifreater than Capital, and closing Insolvent. 
 
 Books usbd. — I'^at Book, Journal, Ledger, and Bill Book 
 See form of Bill Booky at the end of set. 
 
 op«ni»HJ 
 
 ceivable. 
 le t>.Uig 
 he rimtU 
 \te si no 
 
 Ottawa, March 1, 1877. 
 
 Leased a store of T. B. Dean, at |600 per annum, and com- 
 menced the Furniture Business, investing as follows : — 
 
 Cash, $1800. Stock of Furniture on hand, SI 500. Note 
 against A. Overell, for $750, dpted January 17th, 1877, at two 
 months. Total investment, $4050. 
 
 Bought of G. S. Tickell, Belleville, on one month's credit, 
 15 Carved Rosewood Centre Tables, at 850 ; 6 doz. do Arm 
 Chairs, at $60. Total, $1 1 10. 
 
 2. Sold W. R. Barber, on his Note at 15 days, 10 Carved 
 
 Rosewood Chairs, at $8 ; I do Centre Table, $75 ; 1 
 Gothic Hall Stand, $25. Total,$180. 
 
 3. Bought of Jakes A; Hayes, Toronto, on acc't, 10 sets 
 
 Enamelled Furniture, at $75 ; 6 do Black Walnut, at 
 $150; 10 Extension Dining Tables, at $25. Total, 
 $1900. 
 
 6. Sold W. H. Sherman, for Cash, 1 set Enamelled Furniture, 
 $100 ; 1 Extension Dining Table, $40 ; 8 Carved Rose- 
 wood Chairs, at $8. Total, $204. 
 Sold W. W. Jones, on his Note at 1 month, with interest at 
 6 percent., 1 set Enamelled Furniture, $100; 1 Extension 
 Table, $40 ; 1 Dressing Bureau, $35 ; 1 Rosewood Tetc- 
 artete, $50 ; 1 Gothic HpII Stand, $28 ; 1 Card Table, 
 $5 ; 1 French bedstead, $22 ; 1 Cottage Bedstead, $15. 
 Total, $295. 
 Settled with Jakes & Hayes, by giving them my Note at 
 1 month, with interest at 9 per cent., in full of account, 
 $1900. 
 
 9. Bought of J. B. Ashley, on my Note at 10 days, 15 Black 
 Walnut Bookcases, at $60 ; 2 doz. do Arm Chairs, at 
 $60 ; 20 Curled Hair Mattresses, at $20 ; 20 Double 
 leaf Secretaries, at $35 ; 25 Music Racks, at $5. Total, 
 $2245. 
 
 147 
 
 6. 
 
 u 
 
 w-i 
 
 m 
 
 i I-' 
 
 * 
 
 f 
 
 •I 1 
 
 If: 
 
 W.l 
 
 111' 
 
' 
 
 tM 
 
 f 
 
 BOOK-KEEPING. 
 
 i< 
 
 15. 
 
 10. Sold G. W. Maybee, on acconni, 1 Carved Rosewood Cen- 
 tre Table, $60 ; 2 doz. do Arm Chairs, at $50 ; 1 set 
 Enamelled Furniture $80 ; 1 Black Walnut Sofa Bed- 
 stead, at $50 ; 2 Extension Tables, at $30 ; 2 Gothic 
 Chairs, B. W., Stuffed, at $15; 1 Easy Rocke;, $12. 
 Total, $392. 
 
 12. Bought of Jakes & Hayes, on 3 months' credit, an assort^ 
 ment of Furniture, amounting, per invoice, to $3500. 
 Paid Cash for Insurance, $125. 
 
 bold S. G. Beatty, for Cash, 2 Black Walnut Bureaus, at 
 $30 J 1 Rosewood Parlour Set, $400 ; 1 Enamelled Bed- 
 room Suite, $200 ; 1 Single Bedstead, $8 ; 1 Quartette 
 Table, $9 ; 1 l.adies' Arm Chair, $12 ; 1 Black Walnut 
 Library Bookcase, $75. Total, $764. 
 
 16. Sold S. Clare, for Cash, 1 Carved Rosewood Secretary, 
 
 $1 20 ; 3 Patent Spring Beds, at $60 ; 1 Walnut Centre 
 Table, $50 ; 2 Rosewood Bureaus, at $40 ; 2 Arm 
 Chairs, at $10; 2 "Sleepy Hollow" Chairs, at $25 j 
 
 1 Black Walnut Parlour Suite, $300 ; 1 Side What-not, 
 $9. Total, $809. 
 
 17. Paid Cash for three months' rent, $150 ; Advertising, $25. 
 Bought of Jakes k Hayes, on acc't, Furniture amounting, 
 
 per invoice, to $2150. 
 
 Bought of H. W. Huffman, on my Note, at 3 months. Fur- 
 niture amounting to $550. 
 
 Received from G. W. Maybee, Cash on acc't, $150. 
 
 Sold W. Johnston, on his Note at 3 months, 1 Hall Stand, 
 $5 ; 6 Parlour Chairs, at $3.50 j 1 R W. Tete-a-tete, 
 $30 ; 1 Black Walnut Sofa, $30 ; 1 large Dining Table, 
 $14; 1 Piano Stool, $8; 1 Music Rack, $5. Total, 
 $113. 
 
 Sold Warner Bros., for Cash, 2 Bedroom Suites, at $50.60 ; 
 
 2 Rosewood Parlour Suites, at $200. Total, $501.20. 
 20. Received from G. W. Maybee, Cash in full of acc't, $242. 
 
 " Received from A. Overell, Cash in full for his Note of Jan. 
 
 17th, $750. 
 24. Sold H. Corby, on acc't, 20 doz. Kitchen Chairs, at $8 ; 
 
 10 doz. Rush-bottom Chairs, at $18. Total, $340. 
 28. Bought of Smith & Co., Kingston, on Note at 3 months, 
 
 assortment of Furniture amounting, m per invoice, to 
 
 $1500. 
 April 2. Paid G. S. Tickell, Cash on acc't, $600. 
 
 « 
 
 u 
 
 « 
 
 19 
 
 (( 
 
 148 
 
/ 
 
 BOOK-K££PIxNO. 
 
 Den- 
 B«i 
 Bed- 
 [)thic 
 $12. 
 
 igortr 
 [)0. 
 
 18, at 
 iBed- 
 rtette 
 ^alnut 
 
 fjtary, 
 
 Uentre 
 
 Arm 
 
 $25; 
 
 at-not, 
 
 g, •ss. 
 
 [lilting, 
 J, Fur- 
 
 tt 
 
 Beceived from W. W. Jones, Cash in full for his Note of 
 the 6th ult., and interest thereon to date, at 6 per eeut. 
 Face of Note, $295. Interest, $1.62. 
 Faid my Note of 9th ult., favour of J. B. Ashley, with in- 
 terest at 6 per cent for time overdue, 18 days. Face 
 of Note, $2245. Interest, $0.74.* 
 1^. Paid Salaries, $180; Sundry Expenses, $25. 
 Irt. Paid my Note of 6th ult., favour of Jakes & Hayts, with 
 interest to date. Face of Note, $1009. Interest, $19. 
 Inventory of Merchandise unsold, $5336.34. 
 
 Net Cujpital at commencement, $4050. 
 
 Net Loss, $60i9M. 
 
 Net Insolvency at closing, $1999.68. 
 
 Ledger accounts and number of lines required for each : 
 Stock, 6; Cash, 12; Merchandise, 12; Bills Receiv- 
 able, 8 ; Bills Payable, 8 ; G. S. Tickell, 5 : Jakes & 
 Hayes, 6 ; G. W. Maybee, 5 ; H, Coiiby, 5 ; Exibnse, 8 ; 
 Interest, 5 ; Loss and Gain, 8 ; Balance, 7. 
 
 BILL BOOK. 
 
 Stand, 
 -a-tete, 
 Table, 
 Total, 
 
 50.60 ; 
 1)1.20. 
 $242. 
 f Jan. 
 
 at $8; 
 
 lo. 
 
 lonths, 
 
 All necessary explanations of the Bill Book are made by 
 the headings of the different columns. It is so simple that the 
 pupil will see, by inspection, its utility. 
 
 It will be observed that the Bills entered in the following 
 forms are taken from the transactions of Sec Y., and hence 
 the notes on hand and notes outstanding, as shown by Bills 
 carried down, will be found to agree with the balance shown in 
 the proper Ledger accounts. 
 
 * In btuinesa ealoulations, It is not cuatomary to enter (ractioni of a Mnt upon the 
 account booka. consequently in all computations throughout these sets where a fraction 
 of a cent less than one-half occurs, wo uke uo uutiM mt it* but where a fraction of half 
 a uwit ur lUiMT* occunt. w« uili it one ceaU 
 
 nee, 
 
 to 
 
 Uf 
 
B 
 
 z' 
 
 \ 
 
) . 
 
 lOOK-KlEPUia 
 
 r 
 
 4> 
 
 i 
 
 [^ 
 
 
 CO 
 
 INSTEUOTIONS.— SET VL 
 
 The five previous Seti, by Double Entry, have all been 
 worked out on the old Italian meiftod. Another form of entrv 
 will now be introduced, which is extensively adopted in all 
 branches of business. It combines the Day Book and Journal 
 in one book, usually denominated the Journal I);iy Book. 
 
 The Day Book and Journal entries are, by tliis method, in- 
 timately connected in such a manner that they are at ail times 
 ready for posting, and as one book is entirely dispensed with, 
 much unnecessary writing is avoided. 
 
 Although more difficult to the beginner, he will, if he fully 
 understands the work be has already gone over, by closely 
 obuerving the form of entry on pages 158 and 159, soon be 
 enabled to enter properly any transaction as readily as by the 
 method already presented. Until he becomes familiar with this 
 mode of entry, he should, before entering a transaction, make all 
 calculations reiipecting it on his slate or a loose sheet of paper. 
 
 Many of the transactions are similar to those of the preced- 
 ing Sets, and need no additional explanation. Those, however, 
 of the follow iug dates introduce uew features, aud require 
 explanation. 
 
 Jan. 2. In dealings with the Bank, debit it with amoanti dapotiitd, 
 Aiid credit it with amounts withdrawn per check. 
 
 Jan. 4. T. C. Kerr & Co have not purchased this Case of Tweed, but 
 have merely accepted it to sell for us, and will hold it subject to our 
 order until sold or recalled. They do not owe ub for the goods, and 
 shouM not therefore, be charged with them. 
 
 'I'Ue tiaiU' '' Shipment" is applied to Buch transactions, and in order 
 fb» a proper account may be kept with each, the coimiine.es' name or 
 .ice of resir noe should be attached aud the sfaipmentH numbered. 
 riiia accouii. may be named "Shipment to Kerr k Co., No. 1," or 
 **Shi? 't to Hamilton, No. 1." It shoiild be debited for tho full value of 
 the , >ods and for all charges, thus : Sliip't to Kerr k Co., No. 1, Dr. 
 $536.50. To Mdse, $6.25, aud To Cash, |11.50. 
 
 Jan . 6. As Interest and Discount are the same in nature and effect, 
 both representing the tt«e o/" money, and indioating the amount paid or 
 received for it, we do not deem it necessary to keep separate accounts 
 for them ; therefore, post both under the same heading — Interest. 
 
 In order to get a not* discounted at a bank, it umst be properly en- 
 dorsed. This note has been discounted, and cash, $498.68, received. 
 The bank kept the balance, $1.32, for the use of the money until the 
 note falls due. The Journal entry should be as follows : Cash, Dr. 
 $498.18; Interest. Or. $1.;{2. T-- Bills T^^^ceivable, $.jOU. 
 
 CMh was reoeivad, Diaoouut was ailuwcvi ur paid ; therefore, Cash 
 
 1(1 
 
\\ 
 
 IM 
 
 i 
 
 BOOK-KEEPINQ. 
 
 And Interest sbonM b« debited^ and m the BiU wm parted with. Bills 
 Receivable should be credited. 
 
 Jan. 8. This Tweed has merely been received from T. Brown k Co. 
 for sale on their account and risk, and as wo have not purchased the 
 goods, T. Brown tSc Co. should not be credited. The name "Consign- 
 ment" is tisually given to property received for sale on account and risk 
 of the shipper, lu onlor to distiugniish between different consignments, 
 the ship})er's name should be prefixed and each one numbered. This 
 account may be called "Brown k Co.'s Consgt., No. 1," or, as some 
 merchants term it, " Brown A; Co.'s Sales, No. 1." 
 
 The account is debited for all charges paid on it when received, and 
 for all costs accruing thereon while in your possesr^ion, and credited for 
 all its incomos and sales. It should be journalized as follows : T. Brown 
 & Co.'8 Consgt, No. 1, Dr. $12.40. To Cash, .^12.40. 
 
 Jan. 9. A. B. Campion owes us on account, and we have given 
 
 McIduus Bros, a draft on him, expecting Campion to pay it when it falls 
 
 due. 
 
 r\ ^.1 \KA A ^^Au A Tj ( Or, first debit Mdse to Mclnnes Bros., 
 
 Dehd Mdse and cred^ k. B. \ ^^^ ^^^^ ^^^^j Mclnnes Bros, to A 
 
 ^*^1"«"- , ( B.Campicn. 
 
 In Jonrnalizxng Drafts issued or recefvtd, observe the following 
 Rule. — Credit tne person or hank you f'/aw on, becatue that pwwm or 
 bank pays an amount on your account. 
 
 Debit the per<son wlu> draws on you, because you pay a eertam ammmi 
 on his aecourU. 
 
 Jan. 1 1 'i'he acceptance of this Draft is the same in effect as paying 
 J. (>. MacKenzie Sc Co. $400 by Note. It is agreeing t«i pay the Draft 
 by writing the word " Accepted " across its face, and sigvxing your name. 
 VVhen a Draft is accepted by you, debit the person who diaws on you, 
 or the person on whose account the acceptance is given, and credit Bills 
 Payable. 
 
 The Draft on Campion, of the 9th inst., was discounted to Mclnnes 
 Bros., by the bank, and when presented to Campion he refused to aocept 
 it. The bank then had it protested for non-acceptance, and returned it 
 to us for payment. As we credited Campion with the Draft when we 
 drew on him, we must now debit him with the same amount. He re- 
 fused to assume the respoUvsibility respecting the Draft, and should not, 
 therefore, be charged with the protest fee. The entry should be as fol- 
 lows : A. B. (vHnipion, Dr. $225, the amount previously placed to his 
 credit. Loss and Gain, Dr. $1.06, the amount of protest fee. Gash, 
 Cr. $226.00, the amount of cash paid. 
 
 Jan. L9. See explaiiation of tJae 6th. Having indorsed this Note 
 before discounting it, we became responsible for its payment, in case it 
 was not paid by the maker. As he does not pay it, and the Note is 
 allowed to go to protest, the bank looks to us for payment of the Nofce, 
 togetlter with tho protest charges. We do pay it, and, holding the pro- 
 tested Note as evidence of the fact, charge the maker (or person from 
 whom recaivod) with the full amount paifl on his behalf. The Journal 
 entry will therefore be : F. K Sanderson, Dr. $501.06. To Sank, 
 $501.06. 
 
 152 
 
 ! f 
 
ry 
 
 I i 
 
 Le re- 
 not, 
 fol- 
 his 
 
 Note 
 Be it 
 te ii 
 
 |Noi-«, 
 
 ^e pro- 
 
 from 
 
 jurnal 
 
 Book-keeping. 
 
 / 
 
 Jan. 20. HaTing diipoied of the goodg belonging to Brown ft Co.'i 
 
 oonsgt, we find that, after deducting all charge*, we i.Ave in our poe- 
 MMion $4446.60 belonging to T. Brown k Co., for which we should give 
 them credit. Commission should be credited for the amount it has pro- 
 duced. Journal entry: Thos. Brown & Co. 'a C'onsgt, Dr. $4537.60. To 
 Commission, $91. To Thos. Brown & Co., $4446.60. 
 
 Jan. 26. Notes are frequently renewed in this way, when it is found 
 inconvenient to pay the whole amount at the time of maturity. Bills 
 Receivable is deUted for the amount of the now note received, $1040.66. 
 Interest is credited, $40.66, and Bills Eeccivable is credited for the face 
 of the old note parted with, $1000. 
 
 Jan. 27. See explanation of the 6th. The only difference between 
 this transaction and that of the 6th inst. is that the net proceeds of the 
 Note, instead of being taken away, are left to our credit in the Bank. 
 In making the entry debit the Merchants' Bank for the amount left on 
 Ocposit, $2425. 75 ; dkbit Interest for the amount paid or allowed for 
 the use of the money, $11.75 ; and credit Bills Receivable for the face 
 of the Note, $2437.50. 
 
 Jan. 29. ^ .'h is defnted for the total amount received, $501.06, and 
 P. R. Sandeicon credited. It is customary in business to consider a 
 check received the same as cash. Beins payable on demand, the cash 
 is received as aoon as it is presented at tne Bank, or, if we have an ac- 
 count at the Bank, the amount is placed to our credit as Cash deposited. 
 
 Accounts to be opened : 
 
 George Wilson, 5j Henry Cubcminos, 5; Cash, 24; 
 Merchants' Bank, IS ; Bills IIeceivablk, 10 ; A. R. 
 MoMaster, 6; J. G. McKenzie & Co., 6; a. B. Casipion, 
 7 ; D. E. FuLFORD, 7 ; Gordon McKay <te Co., 6 ; P. R. 
 Sanderson, 5 ; Thomas Brown & Co., 5 ; J. C. ISerr k Co., 
 5 ; T. Brown & Co.'s Consgt No. 1, 5 ; Merchandise, 24 ; 
 Shipment to Kerr & Co., No. 1,6; Shipment to Kerr & 
 Co., No. 2, 5 ; Commission, 5 ; Interest, 6 ; Expense, 13 ; 
 Loss AND Gain, 9 ; Balance, 16. 
 
 SET VL 
 
 Th» Books to bx ttsbd nr working this Sit ak», — Dat Book 
 
 AND JOUKNAL COMBOrKD, BillLBoOk, ANi> j.. DOi^H. 
 
 OBARAcrsRHTics.— Thin Ret in int^ndsd to illuRtnite the principlen of ••Imple GoramU- 
 won in connection with a Oeneml Mernhnndisc busluen ; also, the yiriiig and roo«H- 
 inK of Notes, drawit>|^ and accepting JJrafte, and .node of treatinir them wnen tr.wj 
 fall Ju*— Drawing and recaiviug CheckB. and kMpiug a iiaak Aoouunt in the 
 Ledger. 
 
 153 
 
/■ » 
 
 )l 
 
 8ET VL 
 
 TWO PARTNERS. 
 
 1877. 
 
 If 
 
 Jan. 1 sr . George Wilson and Henry Cammings have thit day 
 CDtered into partnership as Dry Goods, Grocery and Commis- 
 sion Merchants, under the firm name of " Wilson & Oumtningfl;'* 
 renting store and fixtures from A. Petrie, at $900 per annum, 
 and agreeing to share gaim and louti in proportion to capital 
 invested. 
 
 George Wilson invests : — 
 
 Gash, as per C. B., $2,800 ; Stock of Merchandise from a 
 former business, $3,000; P. R. .Sanderson's Note, at three 
 months, from October 16th, 1876, for $600. 
 
 Henry Cummings invests : — 
 
 Cash, as per 0. B., $3,000 ; W. J. Peterson's Note, at six 
 months, from July 23rd, 1876, hearing interest at 8 per cent., 
 for $1,000 ; Interest accrued to date, $36.61. 
 
 2. Bought of A. R. McMaster, Toronto, on acc't, 4 cases, 
 
 6,200 yds.. Muslin, at 20c., $1,040; deposited in bank, 
 $4,000. Cash sal.es this day, $170.60. 
 
 3. Bought of J. G. McKenrie & Co., Montreal, on acc't, 3 
 
 cases Prints, 3210 yds., at lOc, $321 ; 4 cases do, 3,600 
 yds., at 15c., $526; total, $846. Paid for Repairs, 
 $5(r.40 ; Freight and Drayage, $10.60. Cash sales this 
 day, $320. 
 
 4. Shipped T. 0. Kerr & Co., Hamilton, to be sold on our 
 
 account and risk, 1 case Tweed, 10 pieces, 360 yds., at 
 $1.50, $526. , Paid Insurance on same, $11.60. Cash 
 sales (kis day, $240.70. 
 
 5. Sold A. B. Cumpion, on acc't, 1 case muslin, 1,300 yds. at 
 
 25c., $325 ; 12 pieces Tweed, 420 yds., at $1.26, $625 ; 
 total, $850. Paid for printing Bills, $8.40. , Cash sales 
 this day, $324.20. 
 
 6. Had P. K. Sanderson's Note of Oct. 15th, discounted at 
 
 Merchants' Bank — face of Note, $500 ; Discount off for 
 unexpired time, 12 days, at 8 per cent., $1.32; Cash 
 received, $498.68. Paid Cartage, $1.50. 
 8. Received frjm Thos. Brown & Co., Montreal, to be sold 
 on their account and risk, 6 cases, 1 00 pieces, Tweed, 
 
 154 
 
""wr 
 
 r ' 
 
 \) 
 
 ^525; 
 sales 
 
 id at 
 iff for 
 
 Cash 
 
 sold 
 reed. 
 
 BOOK-KEEPING. 
 
 ^ 
 
 S,J50 yds., at. f 1.20, $3900. Paid Freight and Dray- 
 age on same, $12.40. Deposited in Bank, $2,000. 
 Bought of A. B. Campion, on acc't, 10 chests Gunpowder 
 Tea, 1,260 lbs. net, at 50c., $625. Cash sales, $325.30. 
 9. Bought of Mclnnis Bros., Hamilton, 7 pieces Canadian 
 Tweed, 226 yds., at $1, $225. Gave in payment my 
 Draft, *t 10 days siglit, on A. B. (Jampion, payable at 
 the Merchants' Bank, for the full amount. Paid Freight, 
 $8.40. 
 
 10. Sold D. B. Fulford, Kingston, on acc't, 1 case Prints, 930 
 
 yds., at 12}c., $116.26; 2 pieces Canadian Tweed, 64 
 yds., at $1.26, $80 ; total, $196.25. Paid for cleaning 
 store, $4.50 ; for Wood, $60. Cash sales, $426.65. 
 
 1 1. Remitted J. G. McKenzie & Co., Montreal, Cash on acc't, 
 
 $446, and our Acceptance at 10 days' sight for the balance 
 of their account, $400. Paid for Advertising, $20.40. 
 The Draft given Mclnnis Broo. on A. B. Campion, has 
 been protested for non-acceptance, and returned to us, 
 by the Merchants' Bank. Paid the face of the Draft 
 and protest fee in Cash, $226.06. 
 
 12. Bought of Gordon, Mackay & Co., Toronto, on acc't, 10 
 
 pieces Scotch Tweed, 350 yds., at $1.30, $455. Ac- 
 cepted A. £.. McMaster's Draft of the 8th inst., payable 
 10 days after date, at the Merchants' Bank, in Toronto, 
 for $500. 
 
 13. Sold A. B. Campion, for his Note at three months, 1 case 
 
 Prints, 840 yds., at 12^c., $105. Paid Gordon, Mackay 
 & Co., in full of account, per check, $455. 
 
 15. Bought of J. G. McKenzie <^ Co., Montreal, 10 cases Cana- 
 
 dian Tweed, 1 20 pieces, 3,7 20 yds., at $1, $3,720. Gave 
 in payment our Note at 30 days fm- f- "2,000, check for 
 $720, balance to remain on account. Cash mles this day, 
 $340.50. 
 
 16. Sold A. B. Campion, for Note at 30 days, from Thos. 
 
 Brown & Co.'s Consignment, 50 pieces Tveed, 1,625 
 yds., at $1.50, $2,437.60. Paid Clerks on acc't, per 
 check, $1 50. Cash sales, $ 1 50. 60. 
 
 17. Gave A. 11. McMaster Draft at 30 days, on D. E. Fnlford, 
 
 for amount of his account, $196.25. Cash sales this day, 
 $390.50. 
 
 18. Received from A. B. Campion, Cash in full of acc't, $225. 
 
 Sold D. E. Fuliord, 4 pieces Scotch Tweed, 140 yds., at 
 $1.60, $210. Re<^ived in payment, check for $100 , 
 
 166 
 
/i 
 
 BOOK-KEEPINa 
 
 M..> 
 
 bftlanee on account Paid sundry items of Expense, per 
 check, $12.50. 
 
 19. P. R. Sander«Jou's Note of Oct. 16th, 1876, which was dis- 
 
 counted at the Merchant*' Bank on the 6th inst., fell 
 due yesterday, was protested for non-payment, and re* 
 turned to us. Paid the Note and protest fee, per 
 check, $501.06. Sold G. H. Ireland, for Note at one 
 month, the balance of Tho«. Brown <fe Co.'s Consignment, 
 50 pieces Tweed, 1625 yds., at $1.30, $2112.50. De- 
 posited in Bank, $500. Remitted A. R. McMaster, 
 Cash, $200, f.nd our Note at 30 days for $300, with 
 which to retire Draft for $500, falling due on the 2 let 
 inst. 
 
 20. Rendered Thos. Brown & Co. an Account Sales of their 
 
 Consignment of the 8th inst. Our Commission, at 2 
 per cent., $91 ; Thos. Brown & Co.'s net proceeds, 
 $4,446.60. Total debit to Thos. Brown ft Co.'s Con- 
 signment, $4,537.60. Cash saU% $318. 
 
 22. Bought of A. B. Campion, on acc't, 200 bbls. Godericb 
 
 Salt, at $1.25, $250. Paid Freight on same, per check, 
 $12. Deposited in Bank, $500. 
 
 23. Shipped T. C. Kerr & Co., Hamilton, to be sold on oui 
 
 account and risk, 150 bbls. Goderich Salt, at $1.50, 
 $225. Paid Freight on same, $12.35. Cash sales^ 
 $278.45. 
 
 24. Paid our Acceptance of the 11th inst., favor of J. G, 
 
 McKenzie & Co., due this day, per check, $400. Sold 
 D. E. Fulford, on acc't, 50 bbls. Goderich Salt, at $1.76, 
 $87.50. Deposited in Bank, $500. 
 
 26. Received from T. C. Kerr & Co., Hamilton, an Account 
 
 Sales of the Tweed shipped them on the 4th inst. Net 
 proceeds, which have been entered to our credit, $586.40. 
 W. J. Peterson has renewed his Note of July 23id, 
 1876, due to-day, by giving a new note at 80 days for 
 the old one, and interest thereon. Face of old Note, 
 $1000 ; Interest, $40.66 ; face of new Note, $1040.66. 
 Cash sales, $265.40. 
 
 27. Had A. B. Campion's Note of the 16th inst. discounted at 
 
 Merchants' Bank, and net proceeds placed to our credit 
 Face of Note, $2437.50 ; Discount for 22 days at 8 per 
 eent., $11.76; net proceeds, $2,425.75. Accepted J. 
 O. McKenzie k Oo.'g Draft in favor of R. W. Easton, 
 at 30 days sight, for $1,000, in full of account. 
 
 15« 
 
m 
 
 BOOK-KEEPING. 
 
 29. Receiy«ti from P. R. Sanderson, check for $501.06 in fnll 
 
 for hi» Note of Oct. 15th, 1876, and protest charge; 
 thereon, paid by ua on the lUth m«t. Gave A. B. 
 . McMaiiter a Si<^ht Draft on T. 0. Kerr & Co. for 
 $343.75, in payment of account. Cash saltt^ $178.40. 
 
 30. Paid Thos. Brown k Co. 'a Sight Draft upon ug, favor of S. 
 
 Clare, for $4416.00, per check. Paid 1 mouth's rent 
 of store, $75 ; Clerk hire, $240. 
 
 Inventory of effects not shcjf n on Ledger : — 
 
 Merchandise unsold 
 Shipment to Kerr & Co., No. 3 
 
 Total Net Gain . '. ' - 
 Gfo. fVilsmt's share of Net Gain 
 H. Cummings' ** " 
 
 - $5321 88 
 
 225 00 
 
 - $453 70 
 
 27G 55 
 177 15 
 
 JOURNAL DAY BOOK.— SET. Tl 
 
 Obserre particularly the following form, that yon may be 
 able to express, in this manner, any conceivable transaction, 
 combining all tlie essential point* of the separate Day Book 
 and Journal. Where more practical forms, for the purpose of 
 condensation, are not in use, the JOURNAL Day Book meets 
 with great favor, as being both plain and practical 
 
 In writing up this book, make your Journal entry first, firom 
 the record of transactions ; then write the explanation imme- 
 diately under it in a smaller hand, commencing about half way 
 between the centre of the page and the date column, M illiuh 
 trated in the following 
 
 MT 
 
fiOO&-KX£PlNa. ' 
 
 FORM OF JOURNAL DAY BOOK. 
 
 January 1, 1877. 
 
 (1) 
 
 li 
 
 
 
 Geo. Wilson And Henrj Cum- 
 
 
 
 
 
 
 
 ming-j have tliis day entered into 
 
 
 
 
 
 
 
 co-partnership as Dry Goods, Gro- 
 
 
 
 
 
 
 
 cery ami Com mission Merchants, 
 
 
 
 
 
 < 
 
 
 under the firm name of " Wilson 
 
 
 
 
 
 
 
 & CumniingB," agreeing to share 
 
 
 
 
 
 
 
 gains and losses in proportion to 
 
 
 
 
 
 
 
 capital invested. 
 
 
 
 6300 
 
 
 
 Sundries, Dr. to G»o. Wilson 
 
 00 
 
 
 
 For aflMt* lafMtAd. 
 
 
 
 
 
 
 
 Cash , 
 
 2800 
 
 00 
 
 
 
 
 
 AiparaJl 
 
 
 
 
 
 
 
 Merchaudicj« 
 
 3000 
 
 00 
 
 
 
 
 
 A» ii«r Invontor/ 
 
 
 
 
 
 
 
 Bills Receivable 
 
 500 
 
 00 
 
 
 
 
 
 p. R. Suid«non'i Note, m per B. B. 
 
 
 
 4035 
 
 ! 
 
 
 Sundries, Dr. to Henry Cummings 
 
 51 
 
 
 
 For «8«cU inTMUdi 
 
 
 
 
 
 
 
 Cash 
 
 3000 
 
 00 
 
 
 
 
 
 ▲f p«r C. B. 
 
 
 
 
 
 
 
 Bills Receivable 
 
 1000 
 
 00 
 
 
 
 
 
 W. J. Prttertun's Not«, su per B. B., 
 
 
 
 
 
 
 
 bearing interest at 8 per cent. 
 
 
 
 
 
 
 
 Interest 
 
 35 
 
 51 
 
 
 
 
 
 Acurued on above Note to data 
 
 •9 
 
 1040 
 
 00 
 
 
 
 ■ 
 
 Merciiandise Dr. 
 
 
 
 
 To A. R. McMa«ter 
 
 
 
 1040 
 
 00 
 
 
 
 Bo'iylit from him on acc't, 
 
 
 
 
 
 
 
 4 ua.^c8 hhibUu, 6,2'JO jda., at 20c. 
 
 170 
 
 50 
 
 
 
 
 Cash Dr. 
 
 
 
 
 To Morohaiulise ! 
 
 
 
 170 
 
 50 
 
 
 
 Bivlei tills day, taken from Caah! 
 
 
 
 
 
 
 
 Box. 
 
 
 
 
 
 
 
 Amount forward . 
 
 11546 
 
 01 
 
 11546 
 
 01 
 
 V 
 
 156 
 
(1) 
 
 630000 
 
 4035 51 
 
 1040 
 
 (2) 
 
 book-keipino. 
 -January 2, 1877. 
 
 r 
 
 (t> 
 
 Brought forirard 
 
 Merchant*' Bank Dr. 
 To Cash 
 
 Amount dfpofiled. 
 
 3 
 
 Merchandise Dr. 
 
 , To J. G. MeKenzie & Co. 
 
 Bought on ace't, 
 t e«Mt PiintJi, S.XIO yds., 
 
 %t 10c. .... 1821 00 
 4 eMot PrlBte. t,SOO jrdi. , 
 
 ftt 16c. • • . . fiU 00 
 u 
 
 Expense Dr. 
 
 To Cash 
 
 Paid for r«p«ln - - fiO 40 
 Freifht and dnyafc* • 10 00 
 u 
 
 Cash Dr. 
 
 To Merchandise • 
 
 SftiM this day, from till. 
 
 4 
 
 Ship't to Kerr <k ('o., No. 1, Dr. 
 To Merchandise 
 " Cash 
 
 Shipped to J. 0. Kerr k Co.. to be 
 sold on our account and risk — 
 
 ] case Tweedi, 10 pes, SfiO 
 ydii., atfl.fiO- - -1526 00 
 
 Paid Insurance on same - 11 60 
 » 
 
 Cash Dr. 
 
 To Merchandise 
 
 Mea tkis day. 
 
 11546 
 4000 
 
 840 
 
 61 
 
 320 
 
 536 
 
 01 
 
 00 
 
 00 
 
 00 
 
 00 
 
 60 
 
 240 
 
 17550 
 
 70 
 
 21 
 
 11546 
 4000 
 
 846 
 
 61 
 
 320 
 
 525 
 11 
 
 240 
 
 01 
 00 
 
 00 
 
 00 
 
 00 
 
 00 
 60 
 
 17550 
 
 70 
 21 
 
 170 50 
 
 NOTK.— The forejrolngr f orm iseonMdersd sufficient to illustrate the mode of tntering 
 transactious in this book. Observe the sanis form throuKliout the remainder of the 8e^ 
 Jonrnalisiiiy the transaction first, and giving the explanation Immediately under it. 
 
 rn 
 
 I 
 
 
 U 
 
 1546 
 
 IM 
 
BOOK-KELfiHii. 
 
 SET. Vn.— GKOCEKY BUSINESS. 
 
 ml' 
 
 * 
 
 !i 
 
 .'. 
 
 i 
 
 Books to be used. — Journal Day P>o(ik, Ca«p Book, Bili. Book, 
 Invoiok Book, Sales Book and Ludqeb,. 
 
 yorma and •xplumtions of thusf ')ookd nol before used will bo fumid immediaUly after 
 tb« Set. 
 
 January 2, 1877. i 
 
 A. R. Sanderson and Wm, Golden i'orm a co-partner- 
 ship for the purpose of conducting the Wholesale and Ketail 
 Grocery and Produce Basiness, agreeing to siiaro gains and 
 losses equally. 
 
 A. R. Sanderson invests — 
 
 Merchandise, as per Inventory 
 
 Balance of account due from A. S. Austin 
 
 Cash, as per C. B. - 
 
 Wm. Golden invents — 
 Cash, na per C. B. - * - 
 Balance of account due from 11. Gordon - 
 
 $5000 00 
 
 870 00 
 
 4130 00 
 
 $9000 00 
 1000 00 
 
 Engaged James Spry, Wm. Active, George Storey and Isaac 
 Porter, as clerks, at $480 each per year, salaries payable 
 monthly.* 
 
 3. Sold T. C. Kerr, St. Catharines, on his Acceptance at 10 
 
 days, 5 bbls. Crushed "A" Sugar, 1000 lbs., at 12ic.; 
 8 bbls. Strong Bakors' Flour, at $6 ; 10 bbls. Spring 
 Flour, at $5.50 ; 10 bbls. Extra, at $7; 16 bbls. Supe- 
 rior Extra, at $7.25. Cash sales tim day, $120.30. 
 
 4. Paid for advertising business in daily papers, $115.60. 
 
 Sold A S. Austin, GueJph, on acc't, 5 bbis. Salmon 
 Trout, at $14 ; 20 )>bis. Herrings, at $4 ; 40 bbls. Su- 
 perior Extra Flour, at $7.76. Paid for set of books for 
 store, $16.60. C«.s7/. saks to-day, 5170.55. 
 6. Bought of Smith & Keighley, Toronto, on acc't, 650 lb«. 
 Java Coffee, at 32c.: 1500 lbs. No. 2 Sugar, at 9c.; 
 966 lbs. Uncolored Japan Tea, at 56c. ; 560 lbs. Young 
 Hyson, at 74c. ; 750 lbs. Prince of Wales' Tobacco, at 
 30c„ Paid Wm. Active, on account of wages, $5.50. 
 Cash sales, $160. 
 
 * Mno yalu* it •zchanrtd, a memomnduro of thii in tb« Journal it all tkat i» «equired. 
 
 160 
 
BOOK-KEEPING. 
 
 6. Deposited in Merchants' Bank, $12000. Had T. C. Kerr's 
 Acceptance of the 3rd inst. discounted at Bank. Face 
 
 of Acceptance, $ ; Discount off, at 8 per cent., 
 
 $ ; Cash received, $ . 
 
 Note. — Observe the manner iu which this trannaction is entered 
 in the C. B. Instead of entering only tlio amount actually received, 
 and debiting Discount in the Journal, the full aniuiint of the Note is en- 
 tered on the Dr. side of the C. B.. aa though it h'x.d ai;t\iaUy been received, 
 and the Discount is entered on the Or. side. 8 'e entry in <J. B. 
 
 8. Bought of Rimmer, Gunn & Co., Montreal, on 4 months' 
 
 credit, or 4 per cent, off for cash, 2.400 lbs. Crushed 
 "A" Sugar, at 12c.; 1,500 lbs. Eleme Figs, at 15c.; 
 '1,350 lbs. S. S. Almonds, at 21c. Paid freight on above, 
 $10.70. Wm. Golden withdrew on ucc't, $150. Cash 
 sales^ $186.50. 
 
 9. Bought of J. A. Mathewson, Montreal, on 3 months' credit, 
 
 or 3 per cent, off for ca«h, 100 boxes J^ayer Kaisins, at 
 $2.25 ; 5 bbls. Zante Currants, at $12.50. Paid freight 
 on same, $5.40. G(if<h sales, $216.80. 
 
 10. Sold P. D. Conger, Toronto, on 30 days' credit, 2 bags 
 
 Java Coffee, 250 lbs., at 40c. ; 2 half chests Colored 
 Japan, 125 lbs., at 70c. ; 500 lbs. Crushed " A " Sngar, 
 at 13c. Received from A. S. Austin, cash on acc't, 
 $500. Cash salts, $265.30. 
 
 11. Received from H. Gordon, his Note at 3 months, for $400, 
 
 to be applied on account. Paid for sundry expenses, 
 $12.50. Cash sales, $240.60. 
 
 12. Sold T. C. Kerr, St. Catharines, on his Note at 2 months, 
 
 10 bbk White Fish, at $6 ; 10 bbls. Salmon, at $14 ; 
 3 bags Rio Coffee, 136, i«, 151, n, 153, it,*— 396 lbs. 
 net, at 40c. Cash sales, $175. 
 
 ♦ The large numbers, as 136, represent the gross weight, and the 
 small numbers to the right, as 12, the number of lbs. tare. 
 
 13. Bought of J. Canuthers <fe Co., Kingston, for Cash, 10 
 
 bbls. Golden Syrup, at $24.40 ; 4 bbls. Bordeaux Vine- 
 gar, $10.50 ; 100 bbls. Salt, at $1.50. Remitted Rim- 
 mer, Gunn & Co., Montreal, Bank Draft, in full for their 
 invoice of the 8th inst. ; less 4 per cent, discount. Paid 
 Cash for the Draft, ^ per cent. Exchange, and the ne- 
 cessary stamps. A. R. Sanderson withdrew on acc't, 
 $200. Paid Isaac Porter on acc't of salary, $12. 
 
 Note. — In the above remittanoc ch« 4 per cent, discount amounts to 
 $31.86, which, deducted from tb . face of the invoice, leaves $704 tU, 
 K 161 
 
 li r 
 
r t 
 
 BOOK-K££PINO. 
 
 the amount of th« faoe of the Draft. The stampg required (Ho. on every 
 IIOO or fraction thereof), amount to 24c., ami thoexcliftni^'*? to 90c. Th* 
 oafth actually paid out ii, face of Draft, $704. (;4; StunipB, 24c.; Ex- 
 change, 96c.; total, $765.84 — aud the differeuce b('Cw«Hiii this and the 
 faoe of the invoice, $796. 5U, is |30.60, the amount actually gained by 
 paying thia bill vrithin 30 days. 
 
 The entry is made in the C. B. similar to the ▲cooptauoe diioounted 
 on the 6th inat. The full amount of invoice is entcrecl on the Or. side, 
 and the discount on the Dr. nide. See entry in C. B. 
 
 15. Sold H. Gordon, Barrie, on acc't at 30 days, 10 bbls. 
 
 Applea, at $4.50 ; 10 bbls. Mean Pork, at $16 ; 25 bbls. 
 Spring Bakers' Flour, at |7. Had H. Gordon's Note of 
 the llth inst. discounted at Merehants' Bank, and net 
 proceeds left to our credit. Faoe of Note, $400 ; Dis- 
 count off, at 8 per cent, per annum, $7.80 ; Net pro 
 oeeda, $392.20. Cath sales, $245.60. 
 
 Non. — The net proceeds of the above note boing left in the Bank 
 to the Or. of the firm, no entry' is made in the 0. B. The Journal entry 
 
 if^, — Bank Dr., $ ; Discount Dr., $ ; To Bills Reo., $ . See 
 
 Journal Day Book. ' 
 
 16. Accepted Smith A Keighley's Draft, at 10 days, for the 
 
 amount of their iuToice of the 5th inst, $-- — . Paid 
 for repairing store, $65.75. 
 
 17. Sold P. D. Conger, Toronto, for his Acceptance at 60 days, 
 
 1200 Iba. Cheese, at lie. ; 20 bbls. Extra Bakers' Flour, 
 at $7.60 ; 30 bbls. Superior Extra do, at $8 ; 10 bbls. 
 Salmon Trout, at $14. Remitted J. A. Mathewson, 
 Montreal, Bank Draft in full for his invoice of the 9tb 
 inst, less 8 per cent, discount. Gave check for Draft, 
 4 per cent. Exchange, and necessary stamps. Cash saleSf 
 $180.70. 
 
 18. Received from H. Gordon, Cash on acc't, $400. Had P. 
 
 D. Conger's Acceptance of the 17th inst discounted at 
 Merchants' Bank, at 8 per cent per annum, and net 
 proceeds left to credit. Paid one quarter's rent of store, 
 $200. Cash Maicii, $l9b. 
 
 19. Bought of H. A. Nelson & Sons, Toronto, $200 doi. Corn 
 
 Brooms, at $3.25 ; 20 do£. at $4 ; 20 dos. at $4.25. 
 Gave in payment check on Merchants' Bank for the 
 amount Deposited in MerchantH* Bank, $200. 
 
 20. Sold A. S. Austin, Guelph, on acc't, 15 bbls. Salmon Trout, 
 
 at $14 ; 8 bbls. White Fish, at $6 ; 25 bbls. Herrings, 
 at $4. Paid sundry items of expense, $25.00. Re- 
 eeived from H. Gordon, Cash on acc'i, $20. duh salts, 
 $225. 
 
 1«2 
 
BOOK-KMBNVtt. 
 
 Id P. 
 )dat 
 net 
 ^tore, 
 
 /orn 
 
 L25. 
 
 the 
 
 rout, 
 
 lie- 
 
 32. GftTe H. A. N«l«on & Sons a Draft at 10 days, on H. Qar- 
 don, for $200. Bought of Oramp, Torrance k Co., 
 Toronto, on aco't at 60 daji, or S per cent, off for ca»h, 
 12 bags Bio Coffee, 1560 Ibi., at 32c. ; 10 chesU Gun- 
 powder Tea, U76 Ibi., at 60c. ; 10 boxes Western Uad 
 Tobacco, at $41.50. Cash MoUt, $216.40. 
 
 23. Accepted A. S. Austin's Draft, at 3 days' sight, for $200. 
 
 Received from Henry Gordon, his Note at 3 months, for 
 $300. Paid James Spry, on acc't of wages, $20. 
 
 24. Sold T. 0. Kerr, St Catharines, on aec\ 425 lbs. Factory 
 
 Cheese, at 12c. ; 4 boxes Prince of Wales' Tobacco, 
 114, la, 116, 10, 118, to, 120, t* — .390 lbs. net, at 
 S2c. Had H. Gordon's Note of the 23rd inst., dis- 
 counted at Merchants' Bank. Face of Note, $-^ ; 
 
 Discount off, at 8 per cent, $ ; Cash received, 
 
 $ . Received from A. S. Austin, to be applied on 
 
 acc't, 600 bbls. Gtoderieh Salt, at $1.50. Ckuh sales 
 $145.25. 
 
 25. Accepted Cramp, Torranee k Co.'s Draft, at 60 days, for 
 
 amount of their invoice of the 22nd inst, $ . Re- 
 ceived from H. Gordon, Cash to balance his acc't, 
 $ . A. R. Sanderson withdrew on acc't, $145. 
 
 26. Bought of Smith & Keighley, Toronto, 20 half chests Gun- 
 
 powder Tea, 1145 lbs., at 66c. ; 10 do Colored Japan, 
 660 lbs., at 60c. ; 10 bbls. Standard Syrup, 370 galls., 
 at 34c. Paid them Cash, $1000, balance to remain on 
 aoc't Paid J. Spry, on acc't of salary, $10. Cash sales, 
 $218.20. 
 
 27. Bought of Rimmer, Gunn A Co., on 3 months' credit, 60 
 
 bbls. Crushed "A" Sugar, 12000 lbs., at lOjc. ; 75 bbls. 
 Yellow Sugar, 15000 lbs., at 8c. ; 50 bbls. Porto Rico 
 Sugar, 10000 lbs., at 7c. Paid Taxes, $40.60; for 
 cleaning store, $4.50. 
 
 29. Sold P. D. Conger, Toronto, for Note at 3 months, 30 
 
 bbls. Salmon Trout, at $14. Paid our Acceptances due 
 this day, per check, — one, faivor of Smith k Keighley, 
 and the other f&vor of A. S. Austin. 
 
 30. JEteceivcd ^om A. S. Austin, Cash on aco't, $100. Bought 
 
 of G. C. Winger, Brighton, for Cash, 10 bbls. Salmo? 
 Trout, at $9 ; 25 bbls. White Fish, at $5 ; I HI 
 Herrings, at $3. Wm. Golden withdrew on acc't, $215. 
 CofA do/M, $275.60. 
 
 if 
 
 lit 
 
BOOK-KEEPINO. 
 
 SI. Paid Clerks in full for servicet to date, p«r check. Paio 
 
 for Advertisinjj, per check, $56.20. 
 
 NoTK.— Make two ientrien of settlement with Clerks. First, debit 
 Expense f 160, and oredit each Clerk $40, amonnt of wages for the 
 month. Next, ascertain the amount aotuallv dae each, and make a 
 second entry debiting the Clerks, and crediting the Baak with th« 
 amount paid. 
 
 Merchandise remaining uritoldf aiper Inventory Book, $14550. 
 
 ISjf 
 
 REMARKS ON SET VII. 
 
 In this Set in represented a practical method of keeping 
 books which, with slight variation, is adapted to almost every 
 kind of business. The Cash Book, Invoice Book and Sales 
 Book are used as books of original entry. The Journal Day 
 Book and Bill Book are kept after the form adopted iu the 
 preceding Set. It wijl be observed that this mode of keeping 
 accounts lessens the explanations required, and greatly facili- 
 tates reference to the several entries ; and by taking the totals 
 of certain accounts, instead of each separate item, the labor of 
 posting is very much reduced. Although certain accounts, as 
 Cash, Merchandise and Expense, are not posted till the end of 
 each month, Personal accounts can be kept fully posted and 
 ready for settlement at any time — a great desideratum in many 
 business houses; and most of the work connected with the 
 books can be done as the transactions occur, thereby prevent- 
 ing the accumulation of work at periodic intervals, as is the 
 case when the Invoice Book, Sales Book and Cash Book are 
 Journalized at the end of each month. 
 
 The books should be written up, as in the preceding Set 
 All the entries in the different books for one day should be 
 mxde before any of the succeeding day. To avoid confusing 
 the pupil with too many operations at once, it is better to omit 
 posting until all the other work of the Set is completed, but in 
 actual business the posting, as well as writing the entries, 
 should be done from day to day. 
 
 JOURNAL DAY BOOK. 
 
 The form of this book is the same as that of Set VI, and 
 requires no further explanation. It is used for such miscella- 
 neous entries only as have no special book approprinted to them. 
 
r I 
 
 BOOK-KEEPINQ. 
 
 INVOICE BOOK. 
 
 f 
 
 '(ffc 
 
 All purchaBes of merchandise are entered in this book. The 
 form adopted in this Set is to copy the iuvoici's in lull This 
 giveg a book record of the details of merchandise purchased, in 
 case the original invoice should be lost or destroyed. 
 
 It is as convenient, and saves a great amount of writing, to 
 paste the original invoices into a large book made for the pur- 
 pose. In some business houses, where the invoices are long, 
 they are filed and numbered, and only an abstract of them 
 entered in this book, with the nuraUer for reterence. It is more 
 convenient to refer to original invoices, by means of an index 
 to a book in which they are pasted, tlian by seeking them 
 from files. 
 
 In whatever form the Invoice Book is ke[)t, every entry af- 
 fecting the debit side of Merchandise Account should originate 
 here ; when this is done it become.^ a direct check upon the 
 Dr. side of the Mercliandise Account in tlie Ledger. 
 
 Merchandise bought on account is posted from this book 
 directly to the credit of the person's account from whom bought, 
 and when bought for a note or acceptance, it is posted directly 
 to the credit of Bills Payable, without i>assirig through the 
 Journal. 
 
 Merchandise purchased for cash is entered in this book, and 
 also in the Cash Book. It is not posted until the end of the 
 month, when the tot-il amount is brought from the C. B., and 
 added to the footing of this book, and then posted in total to 
 the debit of Meichandise Account 
 
 r^ 
 
 :i 
 
 SALES BOOK. 
 
 All sales of merchandise are entered in this book. The 
 amounts of goods sold on account and for notes are placed in 
 the outer column, and posted directly to the debit of the pur- 
 chaser's account, or to the debit of Bills Beceivable Account, 
 iu the Ledger. 
 
 A merchandise column is kept in the Cash Book, in which 
 all cash sales of merchandise are entered, therefore these are 
 not entered in the Sales Book until the end of the month, 
 when the total cash sales are brought from the Cash Book and 
 
 166 
 
r t 
 
 |: J 
 
 I i 
 
 BOOK-KEE7INO. 
 
 added to the total footing of the Sales Book, and all posted, in 
 one amount, to the credit of the Merchandise Account in the 
 Ledger. 
 
 Wholesale honses generally enter cash sales in detail, as a 
 memorandnm, in the Sales Book, but do not extend such en- 
 tries in the (mter column, as they are usually posted from the 
 C. B. This system is necessary Tfhen large sales are effected, 
 for reference, and to guard against error, but it cannot be car- 
 ried into practical effect in a retail business, on account of the 
 number ot petty sales that occur during the day, the amount ol 
 which is ascertained at night, by counting the money in the 
 drawer. 
 
 CASH BOOK. 
 
 As tlie following Cash Book is the book of original entry for 
 all such transactions a^ are entered upon it, great care is neces- 
 sary in making these entries. 
 
 They should be made in such a manner that any person 
 may be able to determine wliat account was intended to be 
 debited or credited for tlie money i)aid or received. For this 
 purpose the following Rule should be observed : 
 
 When money is received, write the name of the account to 
 be credited for it, next the folio or date column on the left 
 side, and the words of explanation, on the same line a little to 
 the right. When money is paid write the nam^ of the account 
 to be debitfid for it, next the folio or date column on the right 
 side, and die words of explanation on the same line, a little to 
 the right. 
 
 The Ledger titles should be kept in a perpendicular column, 
 separated by a slight space from the words of explanation. 
 And it adds greatly to the appearance of the book to begin the 
 words of explanation all on a perpendicular line made by a 
 light pencd mark, and to write them one-half smaller than the 
 Ledger titles. 
 
 Post items from the Cash Book, Journal Day Book, lavoice 
 Book, and Sales Book, in the same order, as regards the dates 
 when the transactions were entered. 
 
 This is a very convenient form for a Cash Book to be kept 
 in connection with a general merchandise business. The fea- 
 ture of special columns may be extended, if desirable. 
 
 It will be seen that all cash entries, debit and credit, except 
 
 166 
 
r ' 
 
 BOOK-EEEPINO. 
 
 tins 
 
 kept 
 foa- 
 
 ■ales of merchandise, are taken to the Ledger from t1ii§ book, 
 together with all accouuLs prodnning or costing casli. 
 
 The columns headed "Merchandise" and "Expenso" will 
 be found very convenient for posting. Should tbe cash trans- 
 actions of a month extend over several pageSj the footings of 
 these columns are brought forward to the end of the month, 
 and posted in total. The check marks in the column follow- 
 ing dates, are made to indicate that the amounts opposite, in 
 tlie " Merchandise " and " Expense " columns are not to be 
 posted, and tlie figures are the pages of the accounts in the 
 Ledger to which the amounts in the ** Sundries '' column oppo- 
 site, have been posted. The method of posting from the Cash 
 Book is extremely simple. 
 
 The amounts in the " Sundries " column on the Dr. side are 
 posted to the crtdii of their respective- accounts — the page of 
 the Ledger being indicated in the folio column, and the 
 amounts in the ** Sundries " column, on the Cr. side, to the 
 dtlAi of their respective acc'^)unts. The footing of the " Mer- 
 chandise " column, on the Dr. side, at the end of the month, is 
 not posted, but carried to the Sales Book and added to the 
 other Ties, and pasted therefrom. The total footing of the 
 "Expend " coluinn, on the Cr. side, is posted to the dthit of 
 Expense Account. The Cash received, or amount of the Dr. 
 side of the Cash Book, is then posted to the dehii of Cash 
 Account, and the total footing of the Cr. side, or cash dis- 
 bursed, to the credit of Ciash Account in the Ledger. 
 
 As the dehii side of the Cash Book contains the crtdxU of all 
 accounts producing cash, and the cfl-tdii side the dthits oli all 
 accounts costing cash, it will be seen that when the above 
 posting is completed a double entry is effected. 
 
 FILL BOOK. 
 
 The Bill Book in this set is not used as a book of original 
 entry to post crom, but as an auxiliary. To save room we have 
 not given it. No difficulty, however, will be exp*^rienced by 
 the pupil in supplying it. as he has already had two examples 
 of its form and use in form(^r })arts of tliis work. By the ad- 
 dition of a few more coluran8,.it may be so kept as to post from, 
 and thus relieve the Journal Day Book from some entries 
 which must otherwise be made thero. 
 
 ccept 
 
 ler 
 
 (' 
 
Iml 
 
 f I 
 
/ • 
 
 SETYH. 
 
 WITH 
 
 JOURNAL DAY BOOK, 
 INVOICE BOOK. 
 SALES BOOK, 
 CASH BOOK, 
 
 AB BOOKS OF ORIGINAL ENTRY; 
 
 POSTING TO THB LEDGER BEING DONE DIRBOTLT 
 FROM THBIL 
 
 
BOOK-JLJfiJilPiNa., 
 
 r^ 
 
 
 JOURNAL DAY BOOK.— SET VIL 
 Toronto, January 2, 1877. 
 
 0) 
 
 A. R. Sanderson and Wm. Golden have 
 this day entered iiito co-partnership, for 
 the purpose of condncting business, as de- 
 fined in their Articles of Co-purtuiTahip of 
 
 itiiis date. 
 
 i << . 
 
 *A. S. Austin Dr. 
 
 To A. R. Sanderson 
 For balance from old account. 
 
 ' * Th« <3afih aad Merchandise invested are posted from 
 
 'T.he Invoice A nd Cash 3ookg, and tliurefore Jo not require 
 
 .0 be 'Entered bere. 
 
 3iH. Gordon Dr. 
 
 Ij To Wm. Golden 
 
 For balance! due from old account. 
 
 (( 
 
 Engaged Jas. Spry, Wm. Active, Geo 
 Storey and Isaac Porter, as Clerks, at 
 $480 each per year, Siilaries payable 
 monthly. 
 11 
 
 Bills Rec. Dr. 
 
 To H. Gordon 
 
 Received from him Note, as per B. B., 
 
 to be applied on accoiint. 
 15 
 
 870 
 
 00 
 
 1000 
 
 400 
 
 2 Merchants' Bank Dr. 
 elDiscount " 
 
 2 
 
 To Bills Rec. 
 
 Had H. Gordon's Not* of the 11th 
 
 inst., discounted at Bank, and net 
 
 proceeds l«ft to our credit. 
 
 16 
 
 Smith & Keighley Dr. 
 
 To Bills Payable 
 
 Accepted their Draft at 10 days, for 
 
 the amount of Invoice of the 5th inst. 
 
 Amount forward 
 170 
 
 00 
 
 00 
 
 870 
 
 1000 
 
 00 
 
 00 
 
 400 
 
 392 
 
 7 
 
 201 
 80 
 
 00 
 
 1622 
 
 80 
 
 400 
 
 00 
 
 419280 4192 80 
 
 1522 
 
 80 
 
r ( 
 
 • / 
 
 00 
 
 CK) 
 
 00 
 
 80 
 
 80 
 
 (2) 
 
 BOOK-KEEPINQ. 
 ToiiONTO, January 17, 1877. 
 
 n 
 
 Brought forward 
 
 J. A. Mathewson Dr. 
 
 To Merchants' Bank 
 " Discount 
 
 Remitted him Bank Draft for Invoice 
 of &th iniit. Discount, $3.62 ; leas 
 Sxchango, 34c. ; and St<imp, 9c. 
 
 Merchants' Bank Dr. 
 Discount " 
 
 To Bills Receivable 
 
 P. D, Oonger'i Acceptance of 17th 
 inst. discounted, proceeds passed to 
 our credit. 
 22 
 
 4192 
 
 287 
 
 80 
 
 60 
 
 4192 
 
 279 
 
 8 
 
 80 
 
 31 
 
 19 
 
 3 
 31 
 
 3 
 2 
 
 2 
 3 
 
 H. A. Nelson & Sons Dr. 
 To H. Gordon 
 For our Draft at 10 days on H. Gor- 
 don. 
 
 23 
 
 A. S. Austin Dr. 
 
 To Bills Payable 
 Accepted his Diaft at 3 days' sight. 
 
 « 
 
 Bills Rec. Dr. 
 
 To H, Gordon 
 
 For his Note at 3 months. 
 25 
 
 4 Cramp, Torrance & Go. Dr. 
 To Bills Payable 
 Accepted their Draft at 60 days, for 
 amount of Invoice of 22nd inst. 
 29 
 
 Bills Payable Dr. 
 
 To Merchants' Bank 
 
 Paid by check our Acceptances, favor 
 of Smith & Keighley, for $1522.80, 
 mud favor of A. S. Austin, $200. 
 
 ABMNini forward 
 171 
 
 65300 
 900 
 
 20000 
 
 662 
 
 00 
 
 200 
 
 300 
 
 1799 
 
 1722 
 
 9364 
 
 00 
 
 00 
 
 20 
 
 80 
 
 30 
 
 200 
 
 OU 
 
 200 
 
 300 
 
 1709 
 
 00 
 
 00 
 
 20 
 
 1722 
 
 80 
 
 0364 
 
 30 
 
 If 
 
, 
 
 l! 
 
 r^ 
 
 BOOK-KEEPINQ. 
 
 Toronto, January 31, 1877. 
 
 (8) 
 
 Brought forward 
 
 Expense Dr. 
 
 To James Spry 
 " William Active 
 " George Storey 
 " Isaac Porter 
 
 For the month's wages. 
 « 
 
 James Spry Dr. 
 William Active " 
 George Storey " 
 Isaac Porter " 
 
 To Merchants' Bank 
 
 For amoui^t due them severally, paid 
 
 pereheok. 
 
 9364 
 
 16000 
 
 30 
 
 9634130 
 
 I 
 
 10 
 34 
 
 40 
 38 
 
 9636 
 
 00 
 50 
 00 
 00 
 
 80 
 
 40 
 40 
 40 
 
 4000 
 
 113 
 
 9686 
 
 00 
 00 
 00 
 
 60 
 
 80 
 
 in 
 
BOOK-KSSPIMa 
 
 INVOICE BOOK.— SET VII. 
 Toronto, Januaiy 2, 1877. 
 
 r 
 
 --(iV 
 
 (1) 
 
 A. IL Sanderson, Investment 
 MerchAndise, m per inTentoiy 
 
 Smith & Keighley, Toronto 
 
 650 lbs. Java CofTee at % 
 
 1500 " No. 2 Sugar " 
 
 9C5 " Uncol'dJapanTea" 
 660 " Young Hyson 
 760 P. of V;. Tobacco 
 
 (I 
 
 •32 
 •09 
 •56 
 •74 
 •30 
 
 8 
 
 Rimmer, Gunn & Co., 
 
 Montreal 
 2400 lbs. Crushed <*▲'' 
 
 Sugar at$ *12 
 
 1600 " ElemeFigB " -15 
 
 1350 " S.S. Almonds " -21 
 
 4 momilii er. orJ^ptr cent, off for cash 
 
 9 
 
 J. A. Mathewson, Montreal 
 
 100 bxs. Layer Raisins at $2.25 
 
 5 bbls. Zante Currants " 12.50 
 
 S months^ cr. or Sper cent, off for cash 
 
 O.B. 
 
 13 
 
 J. Carruthers & Co., Kingston 
 10 bbls. Golden Syrup at $24.40 
 4 " Bordeaux Vin'r*' 10.50 
 100 " Salt " 1.60 
 
 Oashf a$ per a B, 
 
 Paid 
 
 19 
 
 H. A. Nelson & Sons, Toronto 
 
 200 doa. Com Brooms at $3.25 
 
 20 '♦ " " 4.00 
 
 20 " " " 4.25 
 
 MutOHANTg' Bakk, paid psr chtek 
 
 
 Aaoont forward 
 173 
 
 208 
 135 
 
 00 
 00 
 
 640;40 
 41440 
 22600 
 
 288'00 
 22500 
 283 50 
 
 225 00 
 62'50 
 
 244 
 
 42 
 
 00 
 00 
 
 ]f)000 
 
 436 00 
 
 650 00 
 80 00 
 8500 
 
 6000 
 
 00 
 
 1622 
 
 80 
 
 79660 
 
 287 
 
 50 
 
 816 
 
 8421 
 
 00 
 
 80 
 
BOOK-KEEPING. 
 
 r ' 
 
 k '■ 
 
 m 
 
 If 
 
 ^ 
 
 (2) 
 
 i Toronto, January 22, 1877. 
 
 
 
 
 
 4 
 
 ' Brought forward 
 
 Cramp, Torrance & Co., 
 
 Toronto 
 12 bngs Rio Coffae, 
 
 1560 Ibg. at 1 .32 
 10 chests Gunpowder Tea, 
 
 1476 " •* .60 
 10 bxs. Western Leaf 
 
 490 
 
 885 
 
 20 
 00 
 
 8421 
 
 80 
 
 
 
 Tobacco "41.50 
 
 415 
 
 00 
 
 3709 
 
 20 
 
 
 
 60 days or X per cent, off for ea,th 
 
 
 
 
 
 
 
 '^i 
 
 
 
 
 
 
 3 
 
 A. S. Austin, Guelph 
 
 600 bbls. Goderich Salt at |1.50 
 
 
 
 900 
 
 00 
 
 
 4 
 
 Smith & Keighley, Toronto 
 20 hf-chests Gimp. Tea, 
 
 1145 lbs. at 1.66 
 10 " Col'd Japan, 
 
 660 lbs. " .60 
 10 bbls. Stand. Syrup, 
 
 755 
 306 
 
 70 
 00 
 
 
 
 
 
 370 gals. " .34 
 
 125 
 
 80 
 
 1277 
 
 50 
 
 
 
 Cash, as per C. B., $1000. 
 
 
 
 
 
 
 4 
 
 SO days' credit for balance* 
 or 
 
 
 
 
 
 
 Rimmer, Gunn & Co., Mont'l 
 
 
 
 
 60 bbls. Crushed "A" Sugar, 
 
 
 
 
 
 
 
 J20001b8. atf .10?; 
 
 1260 
 
 CO 
 
 
 
 
 
 75 " Yellow Sugar, 
 
 
 
 
 
 
 
 160001138. " .08 
 
 1200 
 
 00 
 
 
 
 
 
 50 " Porto Bico Sugar, 
 
 
 
 
 
 
 
 S months 10000 lbs. " .07 
 
 700 
 
 00 
 
 3160 
 
 00 
 
 
 
 ^0 
 
 
 
 
 
 
 C.B. 
 
 G. C. Winger, Brighton 
 10 bbls. Salmon Trout at |9.00 
 25 " White Fish *' 5.00 
 50 ♦* EerringB " 3.00 
 
 Cash, as per C. B. 
 
 90 
 125 
 150 
 
 00 
 00 
 00 
 
 00 
 
 
 
 
 365 
 
 
 
 
 
 14658 
 
 t,0 
 
 
 6 
 
 Cash p^ircfiuses, from C. B. 
 Total Mdse debit 
 
 
 
 1801 
 
 00 
 
 
 16359 
 
 50 
 
 •,«.«^* ♦STT.SO in pouted .iirecMy to the credit of Smith k Keighley'g account. The 
 fioop to posted to the Cash a.'^ouiit from the C. B. Or, Smith ft Keljrhley may bt 
 credited with the tohoU and debited wfth the $1000 * ' ^ 
 
 174 
 
r t 
 
 BOOK-KEEPINO. 
 
 20 
 
 00 
 
 50 
 
 WOO 
 
 
 wO 
 00 
 
 50 
 
 The 
 Uy bf 
 
 SALES BOOK.— SET VIL 
 Toronto, January 3, 1877. 
 
 2 
 3 
 
 3 
 
 2 
 3 
 
 T. C. Kerr, St. Catharines 
 5 bbls. Crushed "A" Sugar, 
 
 1000 lbs. at I -12^ 
 Strong Baker's Flonr, 
 
 at IC.OO 
 Spring " " 6.50 
 
 Extra " " 7.00 
 
 Superior " " 7.25 
 
 8 
 
 10 
 10 
 15 
 
 
 Bilks Rbo., Acctpianct at 10 days 
 
 A. S. Austin, Guelph 
 
 5 bbls. Salmon Trout at $14.00 
 20 " Herrings " 4.00 
 
 40 «* Sup. Ex. Flour " 7.75 
 
 10 
 
 P. D. Conger, Toronto 
 2 bags Java Coffee, 
 
 250 lbs. at I .40 
 2 hf-chests Col'd Japan, 
 
 125 lbs. " .70 
 600 lbs. Crushed "A" Sugar" !l3 
 SO days 
 
 12 
 
 T. C. Kerr, St. Catharines 
 
 10 bbla. White Fish at $0.00 
 
 10 " Salmon Trout " 14.00 
 
 3 bags Kio Coffee : 
 
 gross, tare. 
 
 136 — 12 lbs. 
 
 151 — 15 " 
 
 153 — 17 •* 
 ____ n 
 
 440 _ 44 = 396 lbs. net at .40 
 Bills Rec, Note at 2 months 
 15 
 
 Henry Gordon, Banie 
 
 10 bbls. Apples at 14.50 
 
 10 ' 
 25 ' 
 SO day t 
 
 Ml as Pork 
 Sp' 
 
 g Baker's Fl'r ' 
 
 '' 15.00 
 7.00 
 
 Aiuouut forward 
 
 m 
 
 125 
 
 00 
 
 48 00 
 
 55IOO 
 
 70|00 
 
 108 75 
 
 70|00 
 
 80|00 
 
 310 00 
 
 100 
 
 87 
 65 
 
 60 
 14000 
 
 00 
 
 50 
 00 
 
 00 
 
 158 40 
 
 45 001 
 150 00 
 175:00: 
 
 -a* I 
 
 (1) 
 
 406 
 
 ^5 
 
 460 
 
 00 
 
 252 
 
 50 
 
 358 
 
 40 
 
 370 00 
 
 1847165 
 
 
' < i 
 
 
 I 
 
 w 
 
 fiOOK-KEEPINO. 
 
 ^ Toronto, January 17, 1877. 
 
 . r^ 
 
 Brought forward 
 
 P. D. Conger, Toronto 
 1200 lbs. Oheesa ab ) .11 
 
 20 bbls. Extra Baker's 
 
 Flour " 7.50 
 
 30 " Superior" " 8.00 
 
 10 " Salmon Trout " 14.00 
 
 Bills Reo., Acceptance at 60 days 
 
 20 r- 
 
 A. S. Austin, Guelph 
 
 15 bbls. Salmon Trout at $14.00 
 
 8 " White Fish «* 6.00 
 
 26 " Herrings " 4.00 
 
 24 
 
 T. C. Kerr, St. Catharines 
 425 lbs. Factory Cheese at $ .12 
 4 bxs. P. of W. Tobacco 
 lbs. tare. 
 114 — 19 
 116 — 19 
 118 — 20 
 120 — 20 
 
 468 — 78 r= 390 lbs. net at .32 
 29 
 
 P. D. Conger, Toronto 
 
 30 bbls. Salmon Tn»ut at $14.00 
 Bills Rec, Note at S montln 
 
 Cash saUafrom G. B, 
 
 Total Mdse credit 
 
 132 
 
 150 
 240 
 140 
 
 210 
 
 48 
 100 
 
 51 
 
 00 
 
 00 
 00 
 00 
 
 00 
 00 
 00 
 
 00 
 
 124 
 
 80 
 
 1847 
 
 65 
 
 662 
 
 00 
 
 868 
 
 00 
 
 175 
 
 420 
 3463 
 3226 
 6690 
 
 80 
 
 00 
 46 
 70 
 15 
 
 
 175 
 
,r 
 
 i '' 
 
 ' r 
 
 CASH BOOK. 
 
 It ? 
 
 -I.J -» ■»- 
 
 :a - I . . .w,^ 
 
 ti 
 
 V 
 
 TTT 
 
IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 1.0 
 
 1.1 
 
 m 
 us 
 
 ass 
 
 u 
 
 ■M 
 
 IL25 i 1.4 
 
 ■ 22 
 
 m 
 1^ 
 
 VQ 
 
 7 
 
 5^ 
 
 
 'V' 
 
 Photographic 
 
 Sciences 
 Corporation 
 
 •s^ 
 
 \ 
 
 \ 
 
 \ 
 
 ^^ 
 
 
 23 WIST MAIN STRUT 
 
 WCBSTH.N.Y. 14S80 
 
 (716) 873-4S03 
 
 

 
 ^^' 
 % 
 
 <> 
 
 
 i\ 
 
BOOK-KREPRfO. 
 
 Db. 
 
 CASH. 
 
 CASH BOOK. 
 
 1877. 
 
 f: 
 1 
 
 1 
 
 Mdse. 
 
 Sundries. 
 
 fan. 
 
 2 
 
 A. R. Saiidernon 
 
 Inveitment 
 
 
 
 4130 
 
 00 
 
 
 (< 
 
 1 
 
 Wm. Golden 
 
 « 
 
 
 
 9000 
 
 OC 
 
 
 3 
 
 ^/ 
 
 MdM 
 
 OMh aalet this day 
 
 120 
 
 30 
 
 
 
 
 4 
 
 x/ 
 
 *« ■■ ,, 
 
 .' m M 
 
 170 
 
 55 
 
 
 
 
 6 
 
 s/ 
 
 (( 
 
 « « ' 
 
 150 
 
 00 
 
 
 
 
 6 
 
 8 
 
 2 
 
 BillsReo. 
 
 Mdse 
 
 O. W.'e Acceptance 
 
 (JiRcountad 
 Bale* tbla daj 
 
 186 
 
 50 
 
 406 
 
 76 
 
 
 9 
 
 y/ 
 
 " 
 
 
 216 
 
 80 
 
 
 
 
 10! 3 
 
 A. S. Austin 
 
 Onaecomit 
 
 
 
 600100 
 
 
 (< 
 
 ^/ 
 
 Mdse 
 
 Thii day'a aalM 
 
 265 
 
 30 
 
 
 
 
 11 
 
 >/ 
 
 " ^ 
 
 "*• 
 
 240 
 
 50 
 
 
 
 
 12 
 
 %/ 
 
 i( 
 
 M 
 
 175 
 
 00 
 
 
 
 
 13 
 15 
 
 6 
 y/ 
 
 Discount " 
 
 Mdse 
 
 R. 0. aECo.'8Tnroic« 
 of the 8th 
 
 Bales thi^ iaj 
 
 245 
 
 60 
 
 30 
 
 6« 
 
 
 17 
 
 >/ 
 
 it < 
 
 « 
 
 180 
 
 70 
 
 
 • 
 
 
 18 
 
 3 
 
 H. Gordon 
 
 On ancount . 
 
 
 
 400 
 
 00 
 
 
 (( 
 
 ^ 
 
 Mdse 
 
 Bales this day 
 
 195 
 
 00 
 
 
 
 
 20 
 
 3 
 
 H Gordon 
 
 On account 
 
 
 
 20 
 
 00 
 
 
 (( 
 
 ^/ 
 
 Mdse 
 
 Bales this day 
 
 225 
 
 00 
 
 
 
 
 22 
 
 n/ 
 
 (( 
 
 «♦ 
 
 216 
 
 40 
 
 
 
 
 24 
 
 it 
 
 2 
 
 Bills Rec 
 Mdse 
 
 H. O.'s Note dis- 
 
 counted 
 This day's sales 
 
 145 
 
 25 
 
 300 
 
 00 
 
 
 25 3 
 
 H. Gordon 
 
 In full of aocount 
 
 
 
 5000 
 
 
 26 ^/ 
 
 Mdse 
 
 Sales to-day 
 
 218 
 
 20 
 
 
 
 
 30 
 
 3 
 
 A. S. Austin 
 
 On account 
 
 
 
 100 GO 
 
 
 (( 
 
 >/ 
 
 Mdbe 
 
 Tliis day's sales 
 
 275 
 
 60 
 
 
 
 1 i 
 
 
 S.B. 
 1 
 
 Total Mdse credits 
 * Cash debits 
 
 3220 
 
 70 
 
 3220 
 
 70 
 
 
 18164 
 
 
 
 IJ 
 
 178 
 
» 
 
 BOOK-KEEPINQ. 
 
 / 
 
 r 
 
 
 SET va 
 
 CASH. 
 
 • 
 
 Dse 
 
 Or. 
 
 Sundries. 
 
 ; 
 
 1 
 1 
 
 1 
 
 J 
 
 
 1877. 
 
 ! F. 
 
 1 
 
 
 
 Exp' 
 
 f 
 
 Jan. 
 
 4 
 
 J 
 J 
 
 Bxpense 
 
 Advertising in Daily 
 l'ai>eni 
 
 8«t of boolciforatore 
 
 1560 
 
 
 « 
 
 5 
 
 5 
 
 Wm. Actire 
 
 On acMont of watres 
 
 
 
 6 50 
 
 1 
 
 
 it 
 
 6 
 
 2 
 
 Merch. Bank 
 
 Deposited 
 
 
 
 1200000 
 
 1 
 
 
 « 
 it 
 tt 
 
 8 
 tt 
 
 6 
 6 
 
 1 
 
 Diseuunt 
 Freight 
 Wm. Golden 
 
 On O. W.'s Accept- 
 ance 
 
 On Goods from R. O. 
 iLGo. 
 
 Withdrew on acc't 
 
 
 
 89 
 
 1070 
 
 16000 
 
 
 n 
 
 1 8 
 
 6 
 
 Freight 
 
 On Ooods from J. A. 
 
 1 
 
 
 5 
 
 40 
 
 
 tt 
 
 11 
 
 v' 
 
 Expense 
 
 Sundry items 
 
 12 
 
 50 
 
 
 
 
 tt 
 
 13 
 
 IB. 
 
 Mdse 
 
 J. 0. ft Co.'s Invoioe 
 
 
 
 436'00 
 
 
 tt 
 
 (( 
 
 6 
 
 Isaac Porter 
 
 On accoant of salary 
 
 
 
 12 00 
 
 1 
 
 
 tt 
 
 It 
 
 1 
 
 k. R. Sanderson 
 
 Withdrew on acc't 
 
 
 
 200 00 
 
 
 tt 
 
 tt 
 
 tt 
 16 
 
 4 
 
 Rimmer, Gunn 
 A Co. 
 
 Expense 
 
 Full for Invoice of 
 8th intt 
 
 Repairinir "tore 
 
 65 
 
 75 
 
 796 
 
 50 
 
 ' 
 
 tt 
 tt 
 
 18 
 19 
 
 2 
 
 it 
 Merch. Bank 
 
 (farter's rent ot 
 store 
 
 Deposited 
 
 200 
 
 
 200 
 
 00 
 
 
 »t 
 
 20 
 
 %/ 
 
 Expense 
 
 Sundry it«nu 
 
 25 
 
 60 
 
 
 
 
 tt 
 
 23 
 
 5 
 
 Jat, Spry 
 
 On account of Avagee 
 
 
 
 2000 
 
 
 tt 
 
 24 
 
 6 
 
 Discount 
 
 On H. O '« Note 
 
 
 
 605 
 
 t 
 
 
 tt 
 
 25 
 
 1 
 
 A. R. Sanderson 
 
 Withdrew on acc't 
 
 
 
 145i00 
 
 1 
 
 
 tt 
 
 tt 
 
 26 
 
 LB. 
 6 
 
 Mdse 
 Jas. Spiy 
 
 Part of S. ft K.'s In- 
 voice 
 On account of salary 
 
 
 
 1000 
 10 
 
 00 
 00 
 
 
 tt 
 tt 
 
 27 
 30 
 
 l.B. 
 
 Expense 
 Mdse 
 
 Tax*8, 140.60 ; elean- 
 in? 8t<jie, $4.50 
 
 •. C. W.'s Invoice 
 
 45 
 
 10 
 
 335 
 
 00 
 
 
 tt 
 
 (( 
 
 1 
 
 W. Golden 
 
 Withdrew on acc't 
 
 
 
 215 
 
 00 
 
 
 
 
 6 
 1 
 
 Total Exi 
 " Gas 
 
 Dense debits 1 
 
 h credits 
 Balamct 
 
 179 
 
 480 
 
 151 
 
 480 
 
 15 
 
 19 
 92 
 
 11 
 
 1 
 i 
 
 
 16053 
 2105 
 
 
 
 18164 
 
 
 '* 
 
 11 
 
 •: 
 
 \i 
 
 
fiO«K-KBEPWa. 
 
 /. 
 
 LEDGER— SET VIL 
 
 m 
 
 Dk. 
 
 A. R. Sanderson. 
 
 Ob 
 
 1877 
 
 Jan. 
 it 
 
 ft 
 
 13ToOMh, O.B. 
 26i " '* OB 
 
 31 
 
 ** BdUmce 
 
 20000 
 
 14500 
 
 11774:76 
 
 '12119761 
 
 1877 
 
 
 Jan., 
 
 2 
 
 (( 
 
 2 
 
 it 
 
 2 
 
 u 
 
 31 
 
 2ByOa8h, O.B 
 "Md»e, I.B. 
 " A. S. AuB- 
 tin, J 
 " LoMAQain 
 
 413000 
 600000 
 
 87000 
 
 2119 
 
 76 
 
 1211976 
 
 WILLIAM GOLDEN. 
 
 1877' 
 
 Jan.! 8 
 30 
 SI 
 
 To Cash, C. B. 
 " " 0. B. 
 '' Balanc6 
 
 15000 
 21500 
 J1175476 
 
 1211976 
 
 1877 
 Jan 
 
 It 
 ti 
 
 2 
 
 2 
 
 31 
 
 By Cash, C.B. 
 
 " H. Gordon, 
 
 J. 
 
 '< LoM&Gain 
 
 9000,00 
 1000,00 
 
 211975 
 
 1211975 
 
 OASH. 
 
 1877i 
 Jan.. 
 
 31 To 
 
 Sundries 
 O.B. 
 
 18164 
 
 18164 
 
 11 
 
 11 
 
 1877i 
 
 Jan. 
 tt 
 
 31 
 
 By Sundries, 
 
 C.B. 
 " Balcme* 
 
 16058 
 
 19 
 
 210592 
 
 18164 
 
 11 
 
 180 
 
BOOK-KEEPING. 
 
 Diu 
 
 
 BILLS RBOEIVABLB. 
 
 s 
 
 (2) 
 Cb. 
 
 1877 
 
 
 • 
 
 
 1 
 
 1877 
 
 
 
 
 
 
 •Tan. 
 
 3 
 
 To T. 0. Kerr, 
 
 
 
 Jan. 
 
 6 
 
 By Oaah, O.B. 
 
 1 
 
 40676 
 
 
 
 S.B.1 
 
 406 
 
 76 
 
 it 
 
 15 
 
 *' Sundries, J. 
 
 1 
 
 40000 
 
 
 11 
 
 " H.Gordon, 
 
 
 
 ft 
 
 18 
 
 " " J. 
 
 2 
 
 662.00 
 
 
 
 J.l 
 
 400 
 
 00 
 
 it 
 
 24 
 
 "Cash, CB. 
 
 1 
 
 30000 
 
 
 1?. 
 
 " T.O.Kerr, 
 
 
 
 it 
 
 31 
 
 " Batcme* 
 
 
 77840 
 
 
 
 S.B.1 
 
 368 
 
 40 
 
 
 
 
 
 
 
 
 17 
 
 " P. D. Con- 
 
 
 
 
 
 
 
 
 
 
 
 ger, S.B. 2 
 
 66200 
 
 
 
 
 
 
 
 
 S3 
 
 " H. Gordon, 
 J. 2 
 
 30000 
 
 
 
 
 
 
 
 
 29 
 
 " P. D. Con- 
 
 ' 
 
 
 
 
 
 
 
 
 
 ger, S.B. 2 
 
 42000 
 
 
 
 
 
 
 
 
 264715 
 
 2547 
 
 15 
 
 MERCHANTS' BANK. 
 
 1877 
 
 Juii.j G 
 15 
 18 
 19 
 
 To Cash, C. B. 2 
 " B. Rec, J.!l 
 
 " Cash, C.B.2 
 
 111877 
 1200000': Jan. 17 
 
 39220 
 
 (i 
 
 
 653100 
 
 t( 
 
 19 
 
 20000 
 
 t( 
 
 29 
 
 
 20j 
 
 ft 
 
 31 
 
 13245 
 
 By J.A. Math- 
 
 ewson, J. 
 
 Mdse, I. B. 
 
 B. Pay., J. 
 
 " Sundries, J. 
 
 ** Balance 
 
 It 
 
 27931 
 
 815100 
 
 1722180 
 
 11250 
 
 1031559 
 
 1324620 
 
 'I 
 
 BILLS PAYABLE. 
 
 1877 
 Jan. 
 
 29 To M. Bank, J. 
 
 31 
 
 2 
 
 <' BaUmet 
 
 1722 
 
 179920 
 
 362200 
 
 80 
 
 1877 
 
 Jan. 
 it 
 
 ft 
 
 16 
 23 
 
 25 
 
 By S.&K., J. 
 ** A. S. Aus- 
 tin, J. 
 •« CST.&CO.J. 
 
 152280 
 20000 
 
 1799 
 
 352200 
 
 20 
 
 181 
 
Db. 
 
 .► 
 
 BOOK-KKJilPING. 
 
 I • A. S. AUSTIN. 
 
 (3) 
 
 1877 
 
 
 Jan. 
 
 2 
 
 (( 
 
 4 
 
 (< 
 
 20 
 
 (< 
 
 2'6 
 
 To A. R. San- 
 derson, J. 
 
 n 
 n 
 
 Mdae, S.B 
 
 " «.r>. 2; 
 
 B. Pay, J. 2 
 
 87000 
 46000 
 
 358 
 
 00 
 
 2000) 
 
 !l- 
 
 11888 00 
 
 1877 
 
 Jan. 
 
 i( 
 
 (( 
 << 
 
 10 
 24 
 30 
 31 
 
 By Cash, 0. B. 
 " Mdsc.I.H. 
 " Cash, O.B. 
 " Balance 
 
 1 
 2 
 1 
 
 ! 
 
 50000 
 90000 
 10000 
 38800 
 
 1888 00 
 
 HENRY GORDON. 
 
 1877 
 Jau. 
 
 <( 
 
 2 
 15 
 
 To H. Golden, 
 
 J. 
 
 " Md»o.,S.li. 
 
 
 
 1 
 
 1877 
 
 
 
 
 1 
 
 1 
 
 i>aii. 
 
 11 
 
 t 
 
 1000 
 
 00; 
 
 (( 
 
 18 
 
 1 
 
 370 
 
 00, 
 
 « 
 « 
 
 20 
 22 
 
 23 
 
 1 
 
 1 
 
 
 
 <t 
 
 26 
 
 1370 
 
 00 
 
 By B. Rec, J. 
 Cubii^ O.B. 
 O.B. 
 
 i( 
 
 (( 
 
 " H. A. N. tt 
 
 Sou, J. 
 
 •* B. Rec, J. 
 
 " Cash, 0. B. 
 
 400|00 
 
 400:00 
 
 2000 
 
 200 
 
 30000 
 
 60 
 
 00 
 
 00 
 
 137000 
 
 H. A. NELSON & SON. 
 
 IH77| I 
 Jan. ,22 To H. Gordon, 2 
 
 J.' 
 
 200 
 
 00 
 
 1877 
 Jan 
 
 U 
 
 By Balance 
 
 P. D. CONGER. 
 
 1877 
 
 1 1 
 
 
 
 1877 
 
 
 
 . 
 
 ■— 
 
 Jan. 
 
 lOToMdse., S.B.I 
 
 252 
 
 50 
 
 Jan. 17 
 
 By Bills Rec, 
 
 
 
 
 t< 
 
 17" " S.B.2 
 
 602 
 
 00 
 
 
 S.B. 
 
 2 
 
 662 
 
 00 
 
 (( 
 
 29 '« «« S.B. 2 
 
 420 
 
 00 
 
 " 29 
 
 " " S.B. 
 
 2 
 
 420 
 
 00 
 
 
 tsssm. =: 
 
 
 
 " 31 
 
 1 
 
 " BaUiiice 
 
 
 252 
 
 50 
 
 
 1334 
 
 50 
 
 1334 
 
 50 
 
 m 
 
(3) 
 
 50000 
 90000 
 10000 
 388 00 
 
 1888 00 
 
 40000 
 
 400;00 
 
 2000 
 
 20000 
 30000 
 
 50 
 
 00 
 
 137000 
 
 20000 
 
 662 
 420 
 252 
 
 00 
 00 
 50 
 
 1334 50 
 
 Db. 
 
 18771 
 Jan. 
 
 BOOK-KSBPING. 
 RIMMBR, GUNN & CO. 
 
 Oil 
 
 la'ToOash, C.B. 
 
 31 
 
 ** Balance 
 
 796 
 3160 
 
 '1877! ' 
 50 Jan. I 8ByMdse.,I.B. 
 
 *' 27i " ** LB. 
 
 00 
 
 3956150 
 
 1 
 
 2' 
 
 79660 
 316000 
 
 395650 
 
 SMirH & KEIGHLBY. 
 
 1877 
 
 
 
 I 
 
 Jan. 
 
 16 
 
 To B. Pay, J. ] 
 
 n 
 
 20 
 
 « Cash, C.B.J 
 
 2 
 
 (( 
 
 31 
 
 *< Balance 
 
 4 
 
 1|!1522!80 
 
 lOOOiOO 
 
 277150 
 
 2800130 
 
 ■18771 I 
 
 Jan. 5ByMd8e, T.B. 
 26: ** " LB. 
 
 i< 
 
 J. A. MATHEWSON. 
 
 1877 
 Jan. 
 
 17 To Sundries, J. 
 
 287 
 
 50 
 
 1877 
 Jan. 
 
 By Mdse, LB. 
 
 CRAMP, TORRANCE & CO. 
 
 1877 
 Jan. 
 
 25 
 
 ToBilla 
 
 "i: 
 
 1799 
 
 20 
 
 1877 
 Jan 
 
 22 
 
 ByMdie, LB. 2 
 
 T. 0. KERR. 
 
 1877 
 Jan. 
 
 (I 
 
 1 
 3 
 12 
 24 
 
 iToMdsejS.lB. ] 
 
 j " " SB. ] 
 
 " " S.B. S 
 
 L 406 
 L 358 
 
 J 17.) 
 
 75 
 40 
 
 80 
 
 1877 
 Jan. 
 
 3 
 
 12 
 31 
 
 By Bills Rec, 
 SB. 
 " " H.B. 
 " Balance 
 
 
 940 
 
 .Jo 
 
 940 1)5 
 
 * 
 
 h 
 
 183 
 
BOOK-KEJEPINO. 
 
 DlU 
 
 l^^ 
 
 WILLIAM ACTIVE. 
 
 L 
 
 Cr. 
 
 1877 
 Jan 
 
 5 
 31 
 
 To Cwh, C.B. 
 *• M. Bank, J. 
 
 ;1877 
 5;50':Jan. 
 3450 
 
 4000 
 
 31 
 
 By Expenie,J. j 3 
 
 JAMES SPRY. 
 
 1877 
 
 Jan. 
 
 (I 
 
 23 
 26 
 
 131 
 
 To Cash, C.BJ2 
 " " C.B. 2 
 " M.Baiik,J. 
 
 20 
 10 
 10 
 
 40 
 
 1877 
 00iJan.3l 
 00 
 00 
 
 00 
 
 By £xpenae,J. 
 
 GEORGE STOREY. 
 
 I 1 
 
 1877 
 Jan. 
 
 31 
 
 To M.Bank, J. 
 
 4000 
 
 1877 
 Jan. 
 
 31 
 
 By £xpense,J. 
 
 ISAAC PORTER. 
 
 1877 
 Jan. 
 
 13 
 31 
 
 To Cash, C.B. 
 " M.Bauk,J. 
 
 i2;ooi 
 
 2800 
 
 40 
 
 00 
 
 1877 
 Jan. 
 
 31 
 
 By Expense, J 
 
 MERCHANDISE. 
 
 1877 
 Jan. 
 
 31 
 
 To Sundries, 
 
 r.B 
 
 " Lossdt Ijuin 
 
 2 
 
 10359 
 
 4880 
 
 21240 
 
 i! 18771 ! 
 501 Jan. 31 By Sundries, 
 I ! S.B. 
 
 05 
 
 15 
 
 BcU. Inv'ty. 
 
 I 669015 
 1455000 
 
 121240 
 
 15 
 
 Ui 
 
Dk. 
 
 BOOK-KRRPING. 
 
 DISCOUNT, 
 
 Om. 
 
 1877' I ! I 
 
 Jan. 6 To Cash, C.B.I2! 
 
 " 15 " B. i:ec., J.il! 
 
 «' ;J4! " Cash, C.R2 
 " 31 •* Loss ib Gain 
 
 1 ''iS-?! I 
 
 180 Jan. 13 By Cash, C.B. 
 7 801 '' 171 '' J. A. Math 
 9()0! I ewsou, J 
 
 (J 05' 
 1511! 
 
 38 851 
 
 2 
 
 JO 66 
 8 IS 
 
 38,83 
 
 EXPENSE. 
 
 1 V.-- 
 
 J Wi ; 
 
 Jan. 
 « 
 
 31To Sundries, J. 3 
 
 (( (t 
 
 (i 
 
 C.B. 
 
 2 
 
 1877 
 Jan. 
 
 31 
 
 By Loss d: Gain 
 
 640 
 
 640 
 
 i: 
 
 15 
 
 FREIGHT. 
 
 1877 
 Jan 
 
 To Cash, C.B 
 " C.B 
 
 .8 
 
 10 
 5 
 
 70 
 40 
 
 1877 
 Jan. 
 
 31 
 
 By Lqsstjb Gain 
 
 I 1 — II I ' I 
 
 I ^ spoil i ; 
 
 LOSS AND GAIN. 
 
 1877 
 
 
 _ — 
 
 ■ ' ' 
 
 — — 
 
 18; 7' 
 
 1 
 
 
 
 — ■ 
 
 'Jan. 
 
 31 
 
 To Expense 
 
 640 
 
 15 
 
 Jan. 
 
 31By Mdse 
 
 
 4880 
 
 65 
 
 << 
 
 11 
 
 " Freight 
 
 10 
 
 10 
 
 " 
 
 ", " Discount 
 
 
 15 
 
 11 
 
 (C 
 
 (I 
 
 " A. K. San- 
 derson 
 
 2119 
 
 76 
 
 
 
 
 
 
 
 u 
 
 it 
 
 " W. Gulden 
 
 2119 
 
 75 
 
 
 
 1 
 
 
 
 
 
 4895 
 
 76 
 
 4895 
 
 76 
 
 185 
 
i> 
 
 BOOK-KEEPING. 
 
 '( 
 
 1 
 
 
 ' 
 
 
 • 
 
 m 
 
 Dr. ^ I BAT.ANCB. \ , Om. 
 
 1877 
 
 l;-i7T : 
 
 Jan. I3I, To Cash 
 
 1 21 05 02 Jan. ,'{ I By B. Pay. 1 
 i 77840 " " 'Ml. G. A Co. 
 
 171)9 20 
 
 <t 
 
 "! " B. Rec. 1 
 
 316000 
 
 (< 
 
 " " M. Bank 
 
 '10315 50 " " *' Smith *K. 
 
 277 50 
 
 ♦♦ i '♦. " A.S.AuatinI 
 
 3H8 00r " *• " A. R. San-' | 
 
 " " ♦• H. A. N. & 
 
 derson !ll77476 
 
 1 Son; 
 
 20000 " " "W. Golden 11176476 
 
 « .ij «« p.D.Congeri 
 
 1; 252 50,1 
 
 
 
 i 
 
 " "I "T. 0. Korr; |! 175 80, 
 
 1 
 
 
 ♦ 
 
 t 
 
 '* " " Mdse. 
 
 ! 
 
 1465000 
 
 i 
 
 t 
 
 
 
 
 • 
 1 
 
 KT-r 
 
 i 
 
 128766 21 
 
 _ 
 
 
 2876621 
 
BOOK-KEEPINa 
 
 BALAI^CE SHEET. 
 
 A ** Balance Sheet " is a colloction of all the difTeronoet 
 of the Ledger accounts, arranged ao aa to show at one view 
 the results of the business. It embraces, in fact, the Balance, 
 Loss and Gain, and Stock Accounts. The following form, 
 although simply headed '' Balance Sheet," inoludes idso the 
 "Trial Balance." 
 
 The manner of preparing it is as follows : 
 
 1. Take a sheet of paper of proper size, and for a border, 
 role double rod lines around the margin. 
 
 2. Rule parallel head-lines, leaving proper space for double 
 headings, as in the example. 
 
 3. Ascertain the number of Ledger accounts to be repre- 
 sented. If the business is that of a single proprietor, rule in 
 pencil as many lines as will contain all the accounts, and ySt;« 
 additional. If it be a partnership business with two or more 
 partners, rule three additional lines for each partner ; thus, for 
 one proprietor, five lines more than all the accounts ; for two 
 partners, eight lines more than all the accounts ; for three part- 
 ners, eleven lines more, and so on. 
 
 4. Lav off proper spaces for debit and credit money 
 columns ; first for the footings of Ledger Accounts, second for 
 Gains and Losses; tliird for Stock, or if partners, for each 
 partner — and fourth for Resources and Liabilities ; also single 
 columns for Ledger titles and their Ledger folios, and a single 
 money column for Inventories. Tiie {.jsition of these columns 
 will be seen in the example given. 
 
 The ruling of the vertical and horizontal ink lines, and the 
 method of making the entries will be better understood by a 
 simple inspection of the form than by any verbal directiona 
 
 187 
 
BOOK-KKEPTNrj. 
 
 O 
 
 o 
 
 CO 
 
 H 
 
 1" 
 
 8 : : : : :a : : :a^ 
 
 r • V: 
 
 ■ 
 
 -r- .a-- . — ^ 
 
 r« 
 
 
 
 : : is Mi? 
 
 • •1-4 • • F" 
 
 i 
 
 '|; : :2S3 :SSS :~?gT":~"~" 
 
 
 isil 
 
 3 1 " . . . . . .... 
 
 q\ ■ •tQTO>n aqoin > .too • • • 
 
 1 : :|I'S Jia : :'.::| : : : : 
 
 
 
 1 
 
 1 
 
 1 
 
 1 
 o 
 
 1 :S :••::::■:::::: : 
 
 
 : : : : : S 
 
 :|S| 
 
 ^! iiMnnnnnn 
 
 1 .Ft 
 
 ■ ' : • o» 
 
 . • • • • i-i 
 
 : I : : : a 
 
 
 0» 
 
 S3 
 
 i -8 :;::::::::::: ; : 
 
 : .: : : : :{2 
 
 Si 
 
 
 . ; : : : 
 
 • : : : : ia 
 t" 
 
 IH 
 
 • . . . • • P.4 
 
 
 a 
 
 • • • « • 
 
 • • • • t 
 
 : : g :lg| 
 
 
 
 <^| 1 ::•::::::::::: : : 
 IS::::::::::::::: : 
 
 1 ill 
 
 
 : g :::::::::::::: : : 
 
 : : :SIS 
 
 ^iSiiiiiMiiiiiMi i 
 
 1 ::::::::::::::: : 
 
 : : is 
 
 • •». 
 
 • • -iH 
 
 • • • i-« 
 
 3 
 
 if 
 
 
 ::::::::::: :5 :S : : 
 
 :|!S 
 
 
 
 3 ::::;»! :'^ : : 
 
 o ::::::::::: :5 : ■ \ 
 
 i i 
 
 : : o- 
 
 . . .© 
 
 <=>••() 
 
 Jl rH.rH 
 
 S IS 
 
 J ::::::::::!:: : : 
 
 
 • 
 
 c 
 
 ::::::::::::§::: S| 
 
 
 1 iiiiiii-iiiisiii 
 
 ^ ::::::::::: ::5i :: : 
 
 tH-'- 
 
 i-H 
 
 3 . . 
 
 il 
 
 • 
 
 •J 
 
 1 
 
 P 
 
 1- 
 
 SSSSifSS :g:=?^'52 :^ : 1^ 
 
 O o o >o » s 1 C'l o . fo »^ S «5 ft • w • 
 
 O O W r-( ■?» C4 r-l .r-tMeJ 3 • 
 r-t rH rH 
 
 
 OOi-i|-H©J?00»0»0»3:iO.-lt-.r-C |iO! 
 
 OOMeOT-^r-t rt (N eo 
 
 l-H 
 
 h i rH rH rH 04 M Ot M m M ■« ■4< •« la O O O 
 
 3 1 
 
 
 CO 
 
 s 
 
 1 
 1 
 
 o 
 H 
 
 s 
 
 • ■«•••••••• 
 
 • •••■»••••• 
 
 ! : ! i i : ig is • : 
 
 ^ : : 44 : :* :^ & 
 
 " llllltllr.^i: 
 
 
 
 18 
 Ja 
 
BOOK -KEEPING. 
 COMPANY ACCOUNTa 
 
 Our space will pomiit us to give only one example, which 
 we will arrange according to the two methods in general use. 
 
 1877, Jan. 1, Received from Robert Smith, New Orleann, 
 to be sold on joint account of himself, James Heaton, and our- 
 selves, each ^, 100 Iihds. Sugar at $60. Paid freight by cheque 
 $500. Jan. 3, Sold Mark Newton, for caish, 30 hhds. at $80 
 Jan. 5, Sold Edward Forbes, on his note, at 30 days, 40 hhds 
 at $80. Jan. 8. Sold Charles A din, on account, 30 hhds. a 
 $80. Storage and Advertising $50. Commission 2^% $200. 
 
 Db. 
 
 FIRST METHOD. 
 MDe^E CO. A. 
 
 Cr 
 
 1«77 
 
 Jan. 
 (( 
 
 (( 
 
 •( 
 
 (( 
 
 To R. Smith 
 *♦ Merchants'BTc 
 " Charges 
 " Cummission 
 
 " R. Smith, i In- 
 voice and not gain 
 
 " J. Heaton |in 
 voice and net gain 
 
 [* Loss and Gain 
 Our i iMt s»in 
 
 2000 
 
 r,()0 
 
 50 
 200 
 
 2416 
 
 2416 
 
 416 
 
 00 
 00 
 00 
 00 
 
 66 
 
 67 
 
 67 
 
 ■!lH77 
 Jan. 
 
 800000 
 
 It 
 
 }iy Cash 
 " EilTs Roc. 
 " Chas. Adiu 
 
 2400'00 
 32(X)00 
 
 2400 
 
 8000 
 
 00 
 
 00 
 
 SECOND METHOD. 
 MDSE CO. A. 
 
 1877 
 
 
 . 
 
 1 
 
 1877 
 
 
 , 
 
 2400;00 
 
 Jan. 
 
 1 
 
 To R. Smith 
 
 400000 
 
 J.'in. 
 
 3 
 
 By Cash 
 
 
 (< 
 
 " Jas. Heaton 
 
 200000 
 
 it 
 
 5 
 
 " Jiilk Rec. 
 
 3200100 
 
 
 (( 
 
 *• Mercliants'B'k 
 
 50000 
 
 (< 
 
 8 
 
 ** Chas. Adin 
 
 2400:00 
 
 
 8 
 
 " Charges 
 
 5000 
 
 
 
 y 
 
 i 
 
 
 u 
 
 ** Commission 
 
 200100 
 
 
 
 y^ 
 
 
 
 
 <( 
 
 " R.Smith, ^„.g 
 
 410 06 
 
 
 
 X 
 
 
 
 
 <« 
 
 '* J. Heaton* n.g.; 
 " Loss and Gain! 
 
 416 07 
 
 
 
 
 
 
 
 <( 
 
 41667 
 
 
 
 / 
 
 
 
 
 
 Our i uet gtiu 
 
 sooo'oo 
 
 
 
 / 
 
 
 
 
 
 800000 
 
 18Q 
 
BOOK-KEE'MNG. 
 
 In the first, the presumption is that we a^^ not indebted at 
 present to R. Smith for more than our ovrn share: in the 
 second, that we are indebted for the whole — to R. Smith, not 
 only for our ^ but his also, and to James Heaton for his }. The 
 closing entries must cori'espond to the opening entries in each 
 case. The pupil will see that the difference betweeii the two 
 methods is in the opening and closing entries. The above 
 entries wUl, of course, indicate the journalizing. It is usual, 
 in posting from the Journal, to bring the last five items on 
 Dr. side in one sum under the term *' Sundries." The first 
 method is the more correct one. 
 
 COMMERCIAL CALCULATIONa 
 
 As the pupil may be supposed t6 be familiar with the method 
 of calculating Interest, Discount, Exchange and Simple Equa- 
 tion of Payments, we will give here only the method of 
 
 EQUATING AN ACCOUNT. 
 
 Suppose the following to be Abel Bond's account in oar Led- 
 ger, and it be required to equate it, that is, to find at what time 
 the balance of the account, $225, should be paid, so that neither 
 he nor we shall be the losers in regard to iuteiest. 
 
 Da. 
 
 
 
 
 ABEL BOND. 
 
 
 Cm 
 
 1876 
 
 
 
 
 1 
 
 1876 
 
 
 
 
 
 Apr. 
 May 
 
 3 
 
 To Mdae at 3 moi 
 
 220 QD July 
 125 W Sop. 
 
 1 
 
 By CftBh 
 
 200 
 
 00 
 
 1 
 
 <( 
 
 a 
 
 5 " 
 
 17 
 
 " N( ♦^jatSmo 
 
 300 
 
 00 
 
 «< 
 
 15 
 
 (( 
 
 (t 
 
 6 " 
 
 200,00 
 
 Oct. 
 
 3 
 
 " Cash 
 
 150 
 
 00 
 
 Ju 
 
 24 
 
 it 
 
 tt 
 
 8 " 
 
 140 
 
 00 
 
 
 
 
 
 
 July 
 
 1 
 
 it 
 
 44 
 
 9 " 
 
 190 
 
 00 
 
 
 
 
 
 
 
 
 
 
 
 First ascertain when each amount becomes due. and then 
 assume the latest date upon wliich any item on either side 
 becomes duo as the date of settlement. Multiply each item on 
 both sides by the number of days betwevsn its date and the 
 assumed date. Find the sum of the i)roduct.^ on each side, and 
 divide the difference between the two aunis by the balance ol 
 tlie account. The quotiwnt will be the number of days that the 
 assumed date is out of the reckoning. 
 
 If the difference of products antl tli' l>Hl)ince of the account 
 fall on the mine dde count backwards; li on opposite sides couir 
 Joruards. > 
 
 lyo 
 
h 
 
 BOOK-KEEPING. 
 
 odat 
 
 i the 
 1, not 
 The 
 L each 
 e two 
 above 
 usual, 
 ins on 
 3 first 
 
 aethod 
 £qua- 
 
 ir Led- 
 
 ftt time 
 neither 
 
 Ci 
 
 200100 
 300,00 
 160i00 
 
 id then 
 lev side 
 litem on 
 land the 
 lide, and 
 laiice ol 
 Ithat the 
 
 acooun^ 
 Le8 coun^ 
 
 EXAMPLE. 
 
 1876 
 
 Am'tB. 
 
 Days. 
 
 Pr' 'ducta 
 
 July 3 
 
 220 
 
 272 
 
 59840 
 
 Oct. 1 
 
 125 
 
 182 
 
 22750 
 
 Not. 15 
 
 200 
 
 137 
 
 27400 
 
 1877 
 
 
 
 
 Feb. 24 
 
 140 
 
 36 
 
 5040 
 
 AprU 1 
 
 190 
 
 
 
 
 
 
 875 
 
 115030 
 
 
 650 
 
 
 112400 
 
 
 225 
 
 2630 
 
 
 11 
 
 1876 
 
 July 1 
 Dec. 20 
 Oct. 3 
 
 Am'ts. 
 
 200 
 300 
 
 Days. 
 
 274 
 102 
 
 150 ! 180 
 
 Products 
 
 650 
 
 54800 
 30600 
 27000 
 
 — ^ ■ 
 
 112400 
 
 The diiferencefl falling both on the 
 aame side we count backwards 11 
 days from April Ist, wliich brings 
 the equated time to March 21bt, 
 1877. 
 
 Any other date may be assumed. If the earliest date had 
 been assumed, the direction of counting would have been op)io- 
 site to that above ; the general rule being — when the diflur- 
 ences fall botli on the same side^ to count from the assumed date 
 in the same (inaction as the other dates are in regard to it ; 
 when the diflferences fall on opposite sides, to count from the as- 
 sumed date in an opposite direction to that of the other dates in 
 re^rd to it. 
 
 The thoughtful pupil will readily see that if he multiply the 
 diflference of the products by the rate per cent, and divide by 
 36500 he will have the balance of interoat, on April Ist, and 
 therefore the amount which settles the account at tliat date. 
 
 Another method of finding the average date is to ascertain 
 what the balance of interest would bo at tlie assumed date of set- 
 tlement. If the balance of interest is in favor of Abel Bond, 
 he is entitled to keep the balance of the account long enough to 
 produce that interest ; hence the true date will be subsequerit to 
 the assumed one, and we must connt forwards, and if the balance 
 of interest is against him, the true date will be just as long 
 before the assumed one, and we must count backwards. 
 
 As, for the purpose of merely equating th ) account, it is im- 
 material what rate per cent, we take so long as we use the same 
 for both «idea^ we> choose 6%, and reckon 360 days to the year. 
 
 ISl 
 
r\ 
 
 BOOK KEEPING. 
 EXAMPLE. 
 
 V^^. 
 
 July 
 
 October 
 
 Nov. 
 
 1877. 
 Feb. 
 April 
 
 3 
 
 1 
 
 15 
 
 24 
 1 
 
 Am'ts. 
 
 220 
 125 
 
 200 
 
 140 
 
 100 
 
 Days. 
 
 875 
 (i50 
 
 225 
 
 272 
 182 
 137 
 
 36 
 
 
 Int'st. 
 
 9.97 
 3.79 
 4.57 
 
 .84 
 
 1870. 
 
 19.17 
 18.73 
 
 July 1 
 
 Dec. 20 
 October 3 
 
 Am'ts. 
 
 Days. 
 
 200 
 300 
 150 
 
 274 
 
 102 
 180 
 
 65! > 
 
 Int'st. 
 
 9.13 
 5.10 
 4.50 
 
 18.73 
 
 .44 
 
 The balance of interest is against A.B. 
 Hence, fur the pHynitjiit of $223 to settle 
 the account, it sh\>iil(i have been paid as 
 Umg before Ai>ril Jst as it would take to 
 produce 44 cents interest; viz., 11 days, 
 brin{ring the equated time to March 21st, 
 1H77, as above. 
 
 The studeiit will ju'reeive that the )»riiicii>lo observed here is 
 to dmrge Abel Bond \yith the interest on tlie various amounts 
 received by lii?« fiotri the time of their becominjr due in Cash to 
 the iissuiued date of settlement, and in like manner to allow or 
 credit him with interest on the sums paid by him. A careful 
 examination of the two methods will show that they are essen- 
 tially the same, for if we divide the difference <^f the products in 
 the first by 6000 we obtain tlio balar.co of interest, 44 cents 
 nearly. The reason of this is phxin. Tiio ir)t(;ie«t, on $220 for 
 272 days, (using for convenience the same rate as above) is 
 
 , ^ 220x6x272 220x272 ^- . _ , .^, ^, 
 
 equal to ~~j~^^^ ^^^ =89.97, and so with the 
 
 rest. Now, in the first method we simply write down the pro- 
 ducts, reserving the division by 6000 until we arrive at the 
 dilf'erence of the products. Indeed, if we divide each individual 
 product, tlie siiiu.s of the debit and credit products, and the 
 dilfiM-ence of these sums, in the first method, by 6000, we shall 
 find the quotients to agree respectively with the corresponding 
 amounts of interest in the second. 
 
 The number of days to be counted from April 1st is more 
 nearly 12 than 11, but we have chosen to give Mr. Bond the 
 advantage of the fraction. 
 
 If he i)ropose to give us his note with interest for the balance 
 of the account it should be dated March 21st, 1877. 
 
 If he propose to settle the account on the 1st of April, 1877, 
 he should pay $225.44. 
 
 There are other ways of equating an account, but our qMoe 
 forbids us alluding to them. 
 
 192 
 
BOOK-KEKPJNG. 
 
 CLASSIFICATION OF ACCOUNTS. 
 
 r**** 
 
 more 
 id the 
 
 alance 
 1877, 
 
 Accounts liavft >>een classified in various ways, but wo will 
 here mention only four of these : — 
 
 I. The older writers generally divided them into Personal, 
 Real, and Fictitious or Nominal, 
 
 Personal. — Those in the names of the persons with whom 
 
 we do business on credit ; as Robert Smith, Charles Adin, 
 
 etc. 
 Real. — Those representing property^ as Cash, Mdse., Real 
 
 Estate, Railroad Stock, Bills Receivable, and including 
 
 also Bills Payable. 
 Fictitious or Nominal. — Those representing the different 
 
 kinds of expenses, and various other causes which add to, 
 
 or take frori;, the gain which the Mdse. Acct. may show ; — 
 
 as Interest, Commission, Expense, the Loss and Gain acct. 
 
 proper, and including also Stock acct. 
 
 NOTE.— If A Bank Acouuut he koot. ROine call it a Real account, as it represents Cash 
 immediately available; others a Fersonai occouni, as the Bank stands relatodtoua 
 ait Dr. or Cr. in the 8ame way as any penun docs. 
 
 11. PersODe^J «-~.«;..r^+.Q. Dror^ort.y accounts, and accounts 
 of Causes ; corresponding severally with the divisions in No. I. 
 
 TII. Personal and Impersonal ; or accounts of Persons 
 an«l Thi-^gS. 
 
 Personal, — All persons with whom we do business on credit, 
 including Bank account, and the ]iro]>rietor*8 investment ac- 
 count, called Stock or Capital. 
 
 Impersonal. — All not per^^oriol : that is, those representing 
 things — not only material, tangible things, such as Cash, 
 Merchandise, Bills Receivable, Bills Payable, Railroad 
 Stock, Real Esfcite, etc., but also anything in the shape of 
 accommodation or advantage received or given by us, and 
 having a money value in relation to our business. 
 
 IV, The most practical division is into Asset and Lia-- 
 bility accounts, and Loss and Gain accounts. 
 
 Asset and Liability accounts. — Those whose closing entry 
 shows an asset or a liability ; as. Cash, Bills Keccivablo, 
 Bills Payable, Bank, Robert Smith, Robert Smith's Con- 
 signment. 
 
 Loss and Gain accounts. — Those whose closini; entiy 
 shows a loss or a. gain; as. Merchandise, Real Estate, Bank 
 
 1.4a 
 
■tPWHB 
 
 fiOOK-KKEPINO. 
 
 * 1 
 
 Stock, Shipment to Hamilton, Commission, Interest, In* 
 surance, Expense, and the Loss and Train account proper. 
 
 NOTE.— Any tpeculative property on )iand, u found by taking stock, la ao a$$et. 
 
 Of these c]assiticati(;ns. III. and lY. seem to us the only 
 ones of any special value. The former aUbrds the means of 
 showing the reason fur debiting and crediting accounts of things 
 as well as accounts of persons. The latter is of practical utility, 
 in leading us direct to the great end of all account-keeping, 
 namely, the present financial coiuUtion of tlie business^ and the 
 ways and means by which from a known prevums condition the 
 present one has been attained. 
 
 NOTE.— The tenni Real and Ittprestntativ hare b«en applied by some to the two 
 dirjtloniin No. TV. Aa these terniu, however, are used by others in a different aense, we 
 have preferred, rather than confuse the student by the ux^> of •opiis >,(, ilifTor'^ntly ap- 
 plied, to c;dl thtni i,ii)))>ly Ai<stt iiiiil ;.;u1il!U,\ ^ueountv, and Lo« and Uain aooiunt-n 
 tlM fonaar are WMuetiinea called > ittuU AooowUt, 
 
' /^.. 
 
 ' I 
 
 flIJ 
 
 EXAMINATION PAPERS 
 
 ON 
 
 book:-k:£:£:i>iivc^, 
 
 SBLKCTBD CHIKFLY 
 
 FROM THOSE PREPARED UNDER THE DIRECTION OF 
 THE EDUCATION DEPARTMENT FOR ONTARIO. 
 
 nOOHD OLAM CBBTIFIGATnL iULT. IVL 
 
 Tims— Onb Houm and a Halv. 
 
 L DMerfb* Vbm CMli Book, Jownal, htigwaA IxitoIm Book. 
 
 2. Toa commenea bariiMM with tS.OOO OMh, and 95,000 goodfl purehMedtratn A. B 
 •t 6 montha. Shew what aoooonta yon would upou. 
 
 I. Whaiaooonnta would ba aflaatad,aAd how, bjtha foUowlBfaDtri«: 
 
 (1) Sold gooda to A. mb aaaoanl» HOfli 
 
 (Q Sold gooda to B. t* tha amount of 91,000, raoalriaf IMO oaah and hit noui at 
 4 montha, payable at Bank of Toronto. 
 
 and givlag wf aot« m% 4 
 
 (P) Boaght gooda fliroBi 0., 11,600, pajing IWW 
 montha, pajrabla at Bank of Oonunaroa. 
 
 (4) Had B.** nota dlaooontad ai Bank cf ToTHito a48 par aant 
 
 (8) RaoaiTad a lagaajof 1800. 
 
 A Wfettt la tha oblact ol tha Praflt and Loaa aoooont T Wh«n do 7011 dobli and credit 
 
 k DMHlhathantepayavwMMtakaincloaiugaaatothookik 
 
 iUUR 0LA88 OIBTIFICATBB, AVaUST, IWTl. 
 
 i WkBllitlM objeot of booMuaotawT 
 waofaaoh. 
 
 TiMB— Onb Hour and a Half. f ' 
 
 the booka naoaliy mployed, and 
 
1 Wh»t to the dlitlnotion t>etwMn real and flcttt)oti> k, ositiuut 
 t. StaU folly how you litdaiicu tbo lullowiog moouuu 
 
 (a) Goods. 
 
 (ft) l'r<i|it and LotWk 
 
 (c) Bttlaiiue. 
 
 4. What ii« meant by a trial balance? 
 
 k Jooraalize the (oUowiQgf traiiHiictiona :— 
 
 (a) lk>Oifht from McMuster A: Co., 60 pieces cloth, eont«!riin|; SO yards each 
 at 9S| per yard, paid cash $1,000,- and guvo luy imto at 6 monUu fui 
 remamder. 
 
 0>) Sold to John bmith, (iroods 8800, received in cash fl&O, and his note at I 
 months for the remainder. 
 
 («) Discounted the above note at 7 per cent. 
 
 > (d) Lost my poclirt book coiitainin); $l<iO. 
 
 (e) The pocket book was found a tew days after and retained, when I f;av« 
 910 to the finder. 
 
 & Shew how to averatce an account. Bought floods from A. K. BfcHaitter A Bro. ai 
 per invoice : April 4th, 9600 on 4 months ; May 15th, $980 on 6 months ; Jun« 
 12th, 91,020 on 4 montliH. Paid on account, May 20th, 9750 ; June 6tb, 9780 . 
 July lOtb, 9300. When muut I pay the balance? 
 
 FIRST CLASS CERTIFICATE— DECEMBER, 1874. 
 Time- -One Hour and a Quarter. 
 
 L Are all the Real Accounts closed To or By Profit and Loss T Give reason for youi 
 
 answer. 
 
 2. Ey plain how the following accountR are closed : Profit and Loss, Stock, Balance. 
 
 5. Define Bill of Lading, Bonded Goods, Bill of Entry, Consignment, Manifest, Letter 
 
 of Credit, Salvage. 
 
 4. Shew with example how to " average an account." 
 
 6, Shew how to Joumalizo in the following cases :— When I &ell troods of one sort for 
 
 part goods of another sort, ptvrt cash, part bills, and p.irt cred". When I buy 
 goods of one sort for part Koods of another sort, part credit, part cash, and part 
 bills. When I receive a legacy in houses, or laud.s, or jroods. When I buy a 
 bill of another for ready money and rooeivo di.scount. When I sell a bill for 
 cash and give discount. When goods bouglit on credit, are sent to sea for my 
 own account. When goods are sent to sea ffir tny Factor's account, which were 
 formerly entered in my books. When thogooils of another person are insurod by 
 me. and 1 receive the money, (1) prcdently, (2) not presently. When goods lii 
 my own that wero insured are cast away at «ea. When the insurance is paid to 
 me after I have entered the circunisUmces in my iiooks. When goods in Com- 
 pany are sold by me on credit When goods of my partner .are brought into 
 Oompauy. 
 
 ist CLASS CERTIFICATES— JULY, 1876. 
 
 Time— One Hour and a Quartee. 
 
 L OIt* in fall srotur ir.otbod oi dodng: • set of Books (Double ESntry). 
 
 |L OUarffy tiM following accouftti* for closing purposes, and explain hoi 
 isttotd Btook, GMh, Merchandise, Balance, Bank, Bank Stock. 
 
 Mooant 
 
BOOK-KEEPING. 
 
 iii 
 
 m. CNv* th* Day Book entetoi that would roqairt th« fuliowiaf Jonni*! «Blri«i:- 
 
 (m) John Tbompflon, Dr 1800 00 
 
 Bwik, .. MOOOO 
 
 To Bill! R«eeiT»bIe, 8000 00 
 
 (¥} Shipmont to A. Low, Dr 
 A. Low, 
 
 To MerchaodlM. 
 •I OMh 
 
 1100 00 
 1060 00 
 
 (v) John Henry, Dr 
 
 To John Henry's Consigrnment IM 00 
 
 IV. J«am»Itze the followinif transactions, post and cluse the Loiget : — 
 
 July Ist, 1876 Invested in busineBS, cash, 8400 ; merchandise, $4,760 ; a note fo' 
 $800 in favor of John Hill, si^ied by W. Willings, and endorsed by H- 
 Cooper, dated May 18th, 1875, at 90 days ; an accepted draft for 8600, drawn 
 by H. Simpson on Oeor^e Doan, May 10th, 1375, at 90 days, and accepted 
 May 16th ; R. Mannin^f's account, $800 ; Real Bstato, 83,000. 2nd. Sold 
 McCrea, Brothers, merchandiHo r8 per invoice, 8200 ; received in payment 
 cheque on Ontario lianlc for ^100, their note to balance. 8rd. Shipped R. 
 Manning 88,000 worth of merchandise, one-half from my storehonse, balance 
 bought from J. Heal on my note at 30 days. 4th. Received from R. 
 Manning his second consigiimoiU, consisting of 100 bids, flour, invoiced at 
 88 per bbl ; paid freight and drayatce on same by cheque, 8180. 6th. Sold 
 R Dunn 100 bbis. flour, from R. Manning's consigiunent No. 2, at 812.60 
 per bbL ; received in pajtnent a ohuqiie on I3nnk for 9300, an order on A. B, 
 for 860, cash for balance. 10th. Closed R Manning's consignment (No. i), 
 and rendered him an account-sales of the same ; our charge for storage, he, 
 •omniission, 840 ; R Manning's net proceeds remitted in cash, 81,020. 10th. 
 - Received account-sales of merchandise shipped R. Manning on the 8rd inst., 
 fSO ; accompanied by a cheqtie for amt of our not proceeds, 888,600, whidi 
 I deposited in Bank. Merchandise on hand, as per inventory, ^,260.00. 
 
 W. Write out the Business Forms required in the preceding question for the iat ana 
 tad ol the month. 
 
 iECONP CLASS CERTIFICATES- JULY, 187t 
 
 Time— Onr Hour and a Quarter. 
 
 L Which do joa consider the more satisfactory system of Book-heep lBt , BIngta at 
 Donble Katry ? Give your reasons in full. 
 
 ft Explain the following terms as used in Book-keeping : Bills Payable, Stock, 8hl|K 
 ment. Consignment, Account Sales, Acceptance, Drawee, Protest. 
 
 ft Journalize the following. Give your rule, and show that it is satisfaotoiy when 
 implied to these particular entries : 
 
 (») July 1st, 1876. I commence basiness investing as follows :— CMh 
 85,000, Mdsei. $2,600, Wood for n^ie in Store $100. I owe on a note, 
 favor of John Thompson, dated June 1st., at 6 mos. 81,200 with one 
 month's interest on same 88. 
 
 (b) Bought of John Jon« Mdse. as per invoice 81,200. Gave in paymeni 
 my note for 8600 at 80 days. Balance on account. 
 
 (e) Rec'd. from Herry Kerr 100 Bbls. Flour invoiced at 88 per bbl., to be 
 sold on bis aooount and risk, paid drayage, tu,, by an oidsr on W. 
 Smith 840. 
 Il^r Book entries corresponding to the following Journal ivsfalM t 
 
BOOK-KEEPINa 
 
 r ' 
 
 Ok) MdM Dr. 
 BKik *• 
 
 Vb John Wallur. 
 
 fu) BUtoPajiOiliL Dr. 
 
 •* Wm.Wiaft. 
 * DiMoimft . 
 
 100 
 
 00 
 00 
 
 
 
 
 
 8M 
 
 01 
 
 •00 
 
 00 
 
 800 
 
 460 
 
 M 
 
 00 
 00 
 00 
 
 i,aoo 
 
 00 
 
 1,000 
 600 
 100 
 
 00 
 00 
 
 (If' 
 
 («) Shipment to A. B. Dr. RlfMO 
 
 T«MdM 
 
 ** 0. D 
 
 •« Ctaih 
 
 & OIt* Day Book entrlas oorraipondlng to th* following entrlea m found In Mdea 
 Account, and eloM th« aceoont, glvan that 11,000 worth of MdMi atUl rtmaiui 
 unsold : 
 
 Dft. " Mon. CIt 
 
 July 
 
 1 
 
 «< 
 
 8 
 
 M 
 
 5 
 
 M 
 
 8 
 
 «■ 
 
 10 
 
 To Stock , 
 
 " SoDdrieH 
 
 " BUl8 KMoivable. 
 " Wm. Cooper . . . . 
 " John Smith 
 
 8,000 
 
 00 
 
 July 
 
 1 
 
 540 
 
 00 
 
 
 8 
 
 820 
 
 00 
 
 
 
 
 800 
 
 00 
 
 
 8 
 
 410 
 
 00 
 
 
 9 
 
 
 
 
 10 
 
 By Cash 
 
 <' Billi Payable.... 
 
 " John Jones 
 
 " Shipment to A. & 
 " miSt Beoalvahle. 
 " Bank 
 
 300 
 
 0« 
 
 150 
 
 00 
 
 1,200 
 
 00 
 
 1,800 
 
 00 
 
 1.600 
 
 00 
 
 100 
 
 00 
 
 NORMAL SCHOOL FOR ONTARIO. 
 
 PORTT-NINTH SESSION— JUNE. «878. i 
 
 FIRST .AND SECOND CLASS CERTIFICATE& 
 
 Time— Two Houma. "^ 
 
 I. DMdt the Mtowing aeeounes into Personal, Real and Fictitious, tU ;— Cash, A. Bl, 
 Bank el Toronto, Interest, Beal EsUte, Gommisaion, BIIIb Reeeivmble, Mdae., 
 Bzpenee, Bank Stoek, Bills Payableb 
 
 1 Divide the same aeoounts into two cIiMea, one showing an asset or a liability, the 
 other a loss or a gain. 
 
 & Say whleh of the Real aeoounts In No. 1 belong to the class of aeoounts showing 
 Assets and Liabilities, and which to the Loes and Gain accounts. Explain how 
 you would distinguish between them. • 
 
 4. The books of original entry being the Cash Book, Sales Book, Invoioe Book, and 
 another for miscellaneons entries explain the use of each. 
 
 & Draw out a form for a Bill Book, and explain its usa. 
 
 & Deeoclhe the mode of posting direct from the Cash Book and InTofoeBook. 
 
 f. Journalise the following Day Book entries : 
 
 (•) Began business with OMh #10,000, of whleh 18000 is borrowed from M. N. on 
 our note. 
 
 Also, 0. D. owes us $400 on his note, and tSOO f<a which we hold no note. 
 
 We owe E. F. on book account fSOO, and O. H on our note ^00. 
 (&) Sold A. B. goods fOOO, and reeeiTed on aooounl, Gash 1400, and B. 8.'s note 
 
 for 1200, on which he allows us discount tl.60 
 (ft) Bought from Bank of Toronto for Cash. Bill of Exchange om City Bank, 
 
 London, EngUnd, for $300 Stg., and remitted the same to Benjamin 
 
 Worth, Manoheeter, England, la settlement eC aooounl Bnhange ^ 
 
'tt 
 
 BOOK -KEEPING. 
 
 A A. 
 
 fi.. Dr. IMW. Cr. 
 
 B. ftnd C. D. M« In |Mtfta«rahtp. On elo«in( th« bnokl tlM 
 
 Aoonanto and the iMm »nd gain acoonnto are aa follow* :— A. 
 
 fSOOO ; C. D., Dr. 9400, Cr ^100 ; Lous and Gain. Dr. flOO, Or. i6W. Required 
 
 the net gain, and each partner's preeeTit net capital. Required alec th« preMOt 
 
 UablUtlee of the concern, the Dr. side of Balance Aect being 9ie,iM0. 
 
 FINAL EXAMINATION. 
 
 flT A' i n' H 8B88ION. DEOBMBIB, 1971. 
 
 FIRST AND SECOND CLASS CERTIFICATES. 
 
 Time—Two Houks. 
 
 1. Before closing Mdne., Bank Btoek, Real Eatate, or any apettOatiM propi^ 
 
 aocouU, with a rlew to flnd the gain or loee, what must be flnt ttJnn into eon< 
 
 •ideration, and what must be done with it? 
 1 Wnat doee the Low and Gain acoount contain when completed t What does the 
 
 Balance account contain T 
 B. In a buBineoi where the transaotious are some for cash, and some on time, either bj 
 
 note or not, name the accounts which will he closed into Balance, and those 
 
 which will be closed into Loss and Gain, stating the aide of these two accounts 
 
 to which the closing entries will be transferred. 
 4. Give an exartole of a sale for cash, one recelTing the buyer's note, aad one oo 
 
 •oooui^t GiTC Day Book and Journal entries. 
 
 6. OWe an example of a purchase made by us, we giving in payment part esih, part 
 
 our own note, part another's note, and cheque on Bank for bidanoe. Oire Daj 
 Book and Journal entries. 
 & Journalise the following:— 
 
 1878, Nov. 26— Received of A.B. his acceptance at one month. ItfOi 
 17— Paid A. B.'s BiU into Bank for discount 
 
 Bill 945000 
 
 Discount.... S <6 
 
 447 75 
 
 7. Why is It that when a condgnmant of goods is made to lis to be sold on account of 
 
 another, we do not enter in the Ledger the value of the goods, while, if toe con- 
 sign goods to another to be sold by him on our account, we do antsr the value 
 flTthagoodst 
 
 t Give an example of an expenditure which would be more properly put in Private 
 Acoount than in Expense, and one which would be more properly put in 
 Capital or Stock than in either Private or Expense. Give a case of cash going 
 out of our poBsee^on for which no account but Loss and Gain, could well be 
 debited. 
 
 f . From the following Trial Balance flnd each partner's present net capital, arrangli^ 
 the entries in the Partners' accounts, the Loss and Gain and BsJance accounts, 
 as they would be in the ordinary dosing of the Ledger. 
 
 •1000 
 
 R. S. (Capital) 
 M. N. (Capital) 
 
 9S888 
 
 loot. 
 
 8888 
 
 lOM 
 
 X. T. (Capital) 
 
 3884 
 
 f 
 
 R. S. (Private i 
 
 •••• 
 
 M.N. Private 1 
 
 •••• 
 
 X T. (Private) 
 
 t. •• 
 
 7000 
 
 Cash 
 
 4000 
 
 4500 
 
 Ontario Bank 
 
 8560 
 
 •78 
 
 Bills Receivable 
 
 478 
 
 81 
 
 Bills Payable 
 A.B. 
 
 904 
 969 
 
 478 
 
 CD. 
 
 078 
 
 10000 
 
 Ifdsei (unsold 9S800) 
 
 7600 
 
 1200 
 
 Ontario Bank Stock (unsold 9600) 
 
 900 
 
 160 
 
 Interest 
 
 100 
 
 » 
 
 Commission 
 
 199 
 
 Ixpenae 
 
 • • •-• 
 
 110.997 
 
 •99i99r 
 
« i 
 
 > «.»w ■««"'■ 
 
INDEX. 
 
 4« 
 << 
 44 
 <4 
 
 Accepted Draft, form of 2 
 
 Account, nature and form of an 7 
 
 Account, examples of iudepemlent 12 
 
 " 'xamples of cuunocted l9 
 
 " object of a get of 3.29, 102 
 
 •• averaffing of 190 
 
 " classincation of . .. 193 
 
 Aneta, nature of 3 
 
 Balance, the meaning of the term in closing entries 130 
 
 Balance Account, remarks on 134 
 
 Sheet, remarks on 125, 187 
 
 •• forms of 41, 66, 82, 88, 125, 188 
 
 Trial, remarks on.. 123 
 
 •* forms of 122, 124 
 
 Bills and Notes, remarks on 144 
 
 journalizing of 161,162,153 
 
 Bills, Due, forms of 97 
 
 Bill of goods, forms of 94 
 
 Bill Book, remarks on 61 
 
 form of 74, 160 
 
 Capital or Stock Account, remarks on 20, 27,46, 134 
 
 Cash Book, remarks on 60, 166 
 
 forms of 71, i78 
 
 Checks, journalizing 153 
 
 Classification of Accounts 193 
 
 Closing Ledger Accounts, remarks on 129 
 
 Consignments, remarks on 152 
 
 Day Book, remarks on 44, 60, 104 
 
 Days of Grace • 144 
 
 Double Entry, fundamental principles of 28, 103 
 
 ♦• how it diflfera from Single 28,90, 102 
 
 Dr. and Or., remarks on their use 11, 106 
 
 Drafts, forms of 2, 99, IOC 
 
 " joumalizinff 152 
 
 Due Bills, forma <« 97 
 
 Equating of Accounts ..'. 19C 
 
 Equal Debits and Credits, a fun.^iimental principle of D. B. 28, 102 
 
 Errorj, detection and correction of 13S 
 
 Papers i, ii, iii. It, t. 
 
11 ^ IVDCZ. 
 
 General St^temenl, forma of, Single Entry 41, M, 82, 88 
 
 " " " Double Entry 126, lb8 
 
 Interest Aooount, reduu-ka on 128, 146 
 
 Inventory Book, remarks on 62 
 
 Inroice Book, remarks on 61, 165 
 
 ** form of 173 
 
 Invoices, forms of 96 
 
 Journal, remarks on 104 
 
 Journal Hay Book, remarks on ... 157, 164 
 
 " •• formof 158,170 
 
 Journalising, general directions ior 105 
 
 Ledffar, remarks on 28, 4.5, 107 
 
 •^ Single and Double Entry, how they diflfer 28, 90, 102 
 
 " Accounts, remarks on closing 12U 
 
 " •' order of closing 131 
 
 Ledger Postings, proof of, in Single Entry 60 
 
 Liabilities, nature of 4, n 
 
 Merchandise Account, ly)W dosed ...130, 133 
 
 Merchandise Co. Accounts, example of 18i( 
 
 Notes and Bills, remarks on 144 
 
 •• •• discounted 151,153 
 
 «• •• renewal of 153 
 
 *• •• protested for non-acceptance 152 
 
 •* '* protested for Don-payment 152 
 
 Orders, forms of 96 
 
 Object of a set of Accounts 3, 29, 102 
 
 Posting, on 46, 108 
 
 Promissory Notes, forms of I, 97 
 
 Proprietor's Investment Account, remarks on 20, 27, 46, 134 
 
 Receipts, forms of 92 
 
 Sales Book, remarks on 165 
 
 formof 176 
 
 Shipments, remarks on 151 
 
 Single Entry, how it'diflfers from Double Entry.... 28, 90, 102 
 
 " defectsof 89 
 
 Speculative Property Accounts, remarks on 130 
 
 Statements, forms of, Single Entry 41,56,82, 88 
 
 " Double Entry 126, 188 
 
 Stock or Capital Account 20,27,46,184 
 
 Trial BaUuMe, remarks m 123 
 
 «« forms of 122, 124 
 
 \ 
 
M 
 
 . J. <S«ge ^ (Sjom |letD (Sbucattxinal QRorke. 
 
 Gage's Practical Speller. 
 
 ▲ n«v MaduaI of BpelUog and DIototton. 
 
 Prloe. 80 Oanto 
 
 rROMINMT rHATUBM 
 
 TIm book is divided into five pwta m followi : 
 
 PAET I. 
 
 ContoiMI tho word! In common um in d»l].T lift together with ftbbrevl*. 
 tions, fonM, etc. If » bov hae to leave aohool early, he should at least 
 know how to spell the words of oommon ocvurrenoe in ooniieotion with his 
 business. 
 
 PAST n. 
 
 Oires wofds liable to be spslled inoorrectly beflsnss the same sounds are 
 spelled in various ways in tnem. 
 
 rAE« n> 
 
 Oontalns woids proooanosd alike bat spelled diffsraotly with different 
 msanlngsi. 
 
 PAtT IT. 
 
 Contains a laifs eolleoMon of the most diffloolt words in oommon use, 
 and is intended to supply material for a gtnenU review, and for spelling 
 matohssand tssta. 
 
 PAM ▼. 
 
 Contains Utsrary selections which are intended to be mmitoriaed and rs- 
 eftetl as wall as used for lUetation leuom and lessons in moralt. 
 
 DIOTATIOM LBBSOITB. 
 
 ▲n the Isssons art suitable tor diatatlon lessons oo the sk^ oris dlola- 
 tion book. 
 
 Thsss will be found throughout ths book. 
 
 An OKoellent oompendliun. AUat. M9lUu,PHn. Aemfy,Digliy,N.8. 
 I regard it as a necessity and an ezoellent compendium of the subjeot 
 of which it treats. Its natural and Judicious arrangement well aooords 
 with its title. Pupils instructed in its principles, under the care of diligent 
 teachers, cannot fail to become correct spellers. It great value will, doubt- 
 less, secure for it a wide circulation. I have seen no book on the subjeot 
 which I can more cordially recommend than "The Practical Speller." 
 
 Supply a want loner felt. John Johmton, I.P.S., BtUevUle. 
 
 The hints tor teaching spellin* are excellent. I have shown it to a Tium- 
 ber of experienced teachers, and they all think it is the best and most prac- 
 tical work on spelling and aictation ever presented to the publla tt will 
 supply a want long felt by teachers. 
 
 AdooArably adapted. CoUn W. Boteoe, I.P.S., WolfviUe, N. S. 
 
 The arrangement and trading of the different clasaes of words I regard 
 as excellent. Much benefit must arise from committing to memory the 
 "Literary Selections." The work is admirably adapted to our publie 
 schools, and I shall recommend it as the best I have seen. 
 
r t 
 
 V 
 
 Wi. J. Sage, k Co's. |lcU) €bucntioual @llork0. 
 
 TUK BKST ELEMENTARY TEXT-liOOK OF THE YEAR. 
 
 Gage's Practical Speller. 
 
 A MANUAL OF SPELLING AND DICTATION. 
 Price, 
 
 30 Cents. 
 
 Sixty copies ordered. Mount Fokkht Advocatb, 
 
 After curcfiil iiisixict un wc iiuhuHituti'i^ly proiiouiicc it the best h|x;11 
 iiijj l)ook ever in use in our iniblic Hch(X)ls. Thu I'nii'tical Si>eller Hccurcs \ 
 ail easy access to its contents by the very systeiiiatic arranj,'enieiit8 of the j 
 u'orils in topical classes; a i)ernianent impression on the memory by the 
 frequont review of difficult words ; and a savin;,' of time and effort by the 
 selection of only such words as are dillieuit and of connnon occurrence 
 Mr. Heiil, II. .S. Master heartily recomiueiuls the work, and ordered soiiio 
 sixty copies. It is a bool: that should be on every business luan's table as 
 well as in the school room. 
 
 Is a necessity. ' I'rbhb. Witnkhs, Hamkax. 
 
 Wo have already had rci>eated occasion to stxiak highly of the Educa- 
 tional Series of which this Ijook is one. The "H|)ellcr" is a necessity ; and 
 Wf have seen no book which we can recouimeiid more heartily than the one 
 
 before us. 
 
 o 
 
 Good print. Bowmanvjm.k Ouhkrvkr. 
 
 The •' Tractical Sjieller " is a credit to the publishers in its general ;,'et 
 
 up, olassitication of subjects, and clearness of treatment. The child wh« 
 
 uses this lH)ok will not have damaj^ed eyesight through bad print. 
 
 o 
 
 What it is. Strath uoy Aue. 
 
 It is a scries of graded IcssoiiH, containintj: the words in general u.so, 
 
 with ablireviations, etc. ; wortls of similar pronunciation and different sjiell- 
 
 I iiig a collection of the most ditfleult words in the language, and a number 
 
 ; of literary selections which may be used for dictation lessons, and commit' 
 
 I ted to memory by the pupils. 
 
 I ET»ry teacher should introduce it. Canadian Statesman. 
 
 j It Is an improvement on th«' old spelling book. Every teacher should | 
 introduce it into his classes 
 
 The best yet seen. Colcukstkr Sun, Nova Scotia. 
 
 ifcisaway ahead of any"8pellnr"that we have heretofore seen. Our public 
 schools want a good spelling book. The publication before us is the best 
 we have yet seen. 
 
 / 
 
 > . Ft 
 
(»►• 
 
 SB. J. (Uqt S: (ITo's gt\x} €bufjitional Movks. 
 
 Authorized for use in the Schools of Ontario. 
 The Epoch Primer of Enghsh History. 
 
 By Rev. M. Ckkioiiton, M. A., Late Feilow and Tutor of Mertoii College, 
 
 Oxford. 
 
 Sixth Edition, 
 
 Price, 30 Cents, 
 
 AbKROKKN .UilKNAL. 
 
 the ac- 
 
 Most thorough. 
 
 This vohiiiic, taken with the eight snial) vohimes containiii<. 
 counts of tiic ditferent ejwchs, presents what may be rc^janled as tiic most 
 thorou},'li course of elementary Kn^flish History ever pulilisheil. 
 
 What was needed. Toronto I>aii.v (!!.obr. 
 
 It is just such a mamial as is necde<l I >y public school pupils who are 
 Roinjf up for a High School course. 
 
 Used in separate schools. M. Stafford, 1'rirht 
 
 We arc using this Ilistory in our Convent and Separate S(!hooIs in Lind- 
 say. 
 
 
 
 Very concise. Hamilton Timks. 
 
 \^ A very concise little book th.at should housed in the Schools. In its 
 pages will he found iiici<l<;iits (.f liiiglish History from A. D. 43 to 1"70, in" 
 teresting alike to young and oU!. 
 
 A favorite. London Advkrtiser. 
 
 The book will prove a favorite with teachers preparing pupils for the 
 
 entrance examinations to the High Schools. 
 
 o 
 
 Very attractive. British Wmo, Kingston. 
 
 This little lif)ok, of one hundred and forty pages, presents hi .tory in a 
 very attractive sliai>e. 
 
 Wisely arranged. Canada Prrsbytrrian. 
 
 The epochs chosen for the division of English History are well marked 
 — not mere artificial milestones, arbitrarily erected by the author, but reaj 
 natural landmarks, consisting of great and important events or remarkable 
 changoe. 
 
 Interesting. Yarmouth TRimrNR, Nova .Scotia. 
 
 With a i>erfcct freedom from all looseness of style the interest is so well 
 
 sustained throughout the narr.ative that those who conmience to road it 
 
 will flno it difficult to Jeave off with its perusal incomplete. 
 
 o 
 
 Comprehensive. Litrrary World. 
 
 The sjKJclal value of this historic.il outline is that it gives the reader a 
 comprehensive view of the course of memorable events and epochs, 
 
r^ 
 
 p. ^. (>5aac Sc Oro'g. ^chJ (Ebncational Silorks. 
 
 HAMBLIN SMITH'S MATHEMATICAL WORKS, 
 
 Authorized for use, and now uncd in nearly all the principal Schools of 
 Ontari . Quebec, Nova Scotia and Manit;o))a. 
 
 Hamblin Smith's Arithmetic. 
 
 An Advaiiccd treatlHC, on tho Unitary System, by J. JIahblin Smith, 
 
 M. A., of Goiivillo and Caius Colleges, and late lecturer of St. Peter's Col- 
 
 lej^e, Cani!)ridtjo. Ada))fwl to Canadian Schools, by Thomas Kirkland, 
 
 M. A., Science Master, Kornial School, Toronto, and William Scott, B. A., 
 
 ! Head Master Model School for Ontario. 
 
 12th Edition, Price, 75 Cents. 
 
 KG Y. — A complete Key to the above Arithmetic, by the Authors. 
 Price, $2.00. 
 
 Hamblin Smith's Algebra. 
 
 An Klementary A'jrehra, i.y .1. Hamrmn Smith, M. A., with Appendix 
 by /If red Baker, B. A., Mathoniatical Tutor, University College, Toronto. 
 
 8th Edition Price, 90 Ceijts. 
 
 KEY. — A complete Key to Hamblin Smith's Algebra. 
 
 Price, $2.75, 
 
 Hamblin Smith's Elements of Geometry. 
 
 Containing Books I. to VT., and portions of Books XI. and XII.,of Ruclidi 
 with Exercises and Notes, by J. Hamblin Smith, M. A., Ac, and Examina- 
 tion Pajwrs, from the Toronto and McGill Universities, and Normal School. 
 Toronto. 
 Price, 90 Cents. 
 
 Hamblin Smith's Geometry Books, i and 2. 
 
 Price, 30 Cents. 
 
 Hamblin Smith's Statics. 
 
 By J. II AMniii.v Smith, M. A., with Appendix by Thomas Kirkland, M. A., 
 Science Master, Normal School, Toronto, 
 
 Price, 
 
 Hamblin Smith's Hydrostatics. 
 
 KEY. — statics and Hydrostatics, in one volume. 
 
 Hamblin Smith's Trigonometry. 
 
 / 
 
 KEY. — To the altove. 
 
 90 Cents. 
 75 Cents. 
 
 $2.00. 
 
 $1.25. 
 
 $2.50. 
 
-4l*» 
 
 SB. Jf. (iafle & €00. |leto OEbucatioual SSHorks. 
 
 BOOKS FOR TEACHERS AND STUDENTS, BY DR. McLELLAN. 
 
 Examination Papers in Arithmetic. 
 
 By J. A. McLkllan, M. A., LL. D., Inspector of Ilitfh Schools, Out., and 
 Thomas Kirkla.nd, M. A., Science Master, Nonnal School, Toronto. 
 
 " In our opinion the best (Jollection of Problems on the American Con- 
 tinent."— NATiONAii Tkaciikum' Monthly, N. Y. 
 
 Seventh Complete Edition, - - Price. $1.00. 
 
 Examination Papers in Arithmetic. ---Part I. 
 
 By J. A. McLki.la.v, M. A., LL. D., and Tnos. Kirkland, M. A. 
 
 Price, ----- 50 Cents. 
 
 Tins Edition has been issued at the request of a large number of I'ublic 
 School teachers who wLsh to have a Cheap Edition for the use of their 
 pupils preparing; for admission to High School. 
 
 Hints and Answers to Examination Papers 
 in Arithmetic. 
 
 _, By J. A. McLrllak, M. A., LL I) , and Tnos. Kirrlano, M. A. 
 Fourth Edition, - - - - - $1 GO, 
 
 I. 
 
 McLellan's Mental Arithmetic. ---Part 
 
 Containing the Fundamenbi] Rules, Fractions and Analysis. 
 
 By J. A. McLHiiiiAK, M. A., LL. D., I/ispector High Schools, Ontario. 
 
 Third Edition, . - . - SO Cents, 
 
 Authorized for use in the Schools of Nova Scotia. 
 
 McLellan's Mental Arithmetic. ---Part II. 
 
 Specially adapted for Model and High School Students. 
 Third Edition, - - - Price, 45 Cente. 
 
 The Teacher's Hand Book of Algebra. 
 
 By J. A. McLellan, M. A., LL. D. 
 Second Complete Edition, - - - $1.25. 
 
 Teacher's Hand Book of Algebra.— Part I. 
 
 Prepared for the use of Intcnnc<iiate Students. 
 Price, ----- 75 Cents 
 
 Key to Teacher's Hand Book of Algebra. 
 Second Edition, - - - Price, $1.5Q. 
 
/•• 
 
 r — " 
 
 pi 
 
 i 
 
 as. Jf. (Sage ^ ODo'e. ^to (Sbnrational SEorks. 
 
 WORKS FOR TEACHERS AND STUDENTS. BY JAS. L. HUGHES. 
 
 Examination Primer in Canadian History. 
 
 On the Topical Method. By Jas. L. Huqiikk, Iiisiicctor of Schoola, To. 
 ronto. A Primor for Students preparing for Examinauon. Price, 25c' 
 
 Mistakes in Teaching. 
 
 By Jaj. Lauoiilin Hdohis. Second edition. Price, 60c. 
 
 AOOFTID BT 8TATI UmVUSITT OP IOWA, AS AN RLBHINTARV WORK rOK U8B 
 
 OF TRACHBRS. 
 
 This work diaousses In a terse manner over one hundred of the niistakus 
 commonly made by untrained or inoxperienccxi Teachers, It isdeHi<,'(iuil to 
 warn young Tuochers of ^ho errors thry are liable to make, and to help the 
 older members of the profession to discard whatever methods or habits may 
 be preventing their higher success. 
 
 The mistakes are arranged under the following heads : 
 
 1. Mistakes in llatiagement. 2. Mistakes in DifloipUnr. 1. Mistakes In 
 Methods. 4. Mistakes in Manner. 
 
 How to Secure and Retain Attention. 
 
 By jAfl. LAoanLiM Huohbs. Price, 25 Cente. 
 
 Comprising Kinds of Attention. Characteristics of Positive Attent^'^'^ ' 
 Characteristics of The Teacher. How to Control a Class. Developing &.bn 
 tal Activity. Cultivation of the Senses. 
 
 rProm Tns Schooi. and Univrrsitt Maoakinr, London, Eno.) 
 "Replete with valuable hints and |>ractical suggestions which are evident- 
 ly the result of wide experience in the scholastic profession." 
 
 Manual of Drill and Calisthenics for use in 
 Schools. 
 
 By J. L. HuonKH, Public School Inspector, Toronto, Graduate of Military 
 schotd, H. M. 29th Regiment. Price. 40 Cents. 
 
 The work contains : Tho Sr^uad Drill prescribed for Public Schools in On- 
 tario, with full and explicit directions for teaching it. Free Gymnastic Ex- 
 iTcisos, carefully selected from the best German and American systems, 
 and arranged in propar classes. German Calisthenie Exercises, as taii^iit 
 l).v tho late Colonel Goodwin in Toronto Nonnal School, and in England. 
 .Several of tho best Kindorfjarten Games, and a few choice Exercise S'ti^s. 
 The instnictions throuE;:hout the book are divested, as far as possible, of 
 unnecessary technicalities. 
 
 "A most valuable book for every teacher, particularly in country places" 
 It embraces all that a school teacher should teach his pupils on this subject. 
 Any teacher can use the easy drill lessons, and by doing so he will be c<iti- 
 feriring a benefit on his country."— C. Raucliftr Dkaunaly, Major Fint 
 Life Guards, Diill Instructor Nonnal and Model Schools, Torouto. 
 
M. J. (SaQc * €00. fic\3} (Ebucational SStorke 
 
 . MASON'S GRADUATED SKlllES OF KNULISH URAHMAKS. 
 
 Mason's Outlines of English Grammar. 
 
 For the use of junior classes. 
 Price, 45 Cents. 
 
 Mason's Shorter English Grammar. 
 
 With copious and carefully graded exercises, 243 pages. 
 Price, M 60 Cents. 
 
 Mason's Advanced Grammar. * 
 
 Including the principles of Grammatical Analysis. By C. P. Mason. 
 H. A., F. C. F., fellow of University Ooliego, London. Enlarged ana 
 tlioroughly roviscJ, with Examinations Pajx-TS added by W. Houston. M.A., 
 
 27th Edition, price, 75 Cents- 
 
 " I asked a grammar school inspector in the old country to send mc the 
 l>e.st granjinar pu)>lishcd there. He immediately sent Mason's. The chap- 
 ters on the analysis of ditHcult sentences i.s of itself HUflicient to place the 
 worli tar l)evoncl any English Grammar hitherto before the Canadian f>ub- 
 lio "—Alex. Sim.H, M. A., H. M. H. S., Oakville. 
 
 English Grammar Practice. 
 
 This work consists of the Exorcises appended to the " Shorter English 
 Grammar," published in a separate form. They are arranged in progn^ssive 
 lessons in such a manner as to be available with almost any text book of 
 1<]nglish Grammar, and take the learner by easy stages from the simphist 
 English work to the most difficult constructions in the language. 
 
 Price, 30 Cents. 
 
 Outlines of English Grammar. 
 
 These elementary ideas are reduced to regular form by means of careful 
 deHnitions and plain rules, illustrated by abundant and varied examples tor 
 priu;ticc. The leanier is made acquainted, in mndcrato measure, with tiic 
 most important of the older forms of English, with the way In which words 
 are constructed, and with the elements of which modeni English is made , 
 up. Analysis is treated so far as to give thi^ |)owor of dealing with sen- 1 
 tenccs of plain construction and moderate dificulty. In the I 
 
 English Grammar , I 
 
 the same subjects :ire presented with much greater fnlncss, and carried to I 
 a more advanced and aifficult stage. The work contains ample materials ' 
 for the renuircmcnts of Competitive Examinalions reaching at lca.st the 
 standard of the Matriculation Examin.ation of the University of liondon. 
 
 The Shorter English Grammar. 
 
 is intended for lonrnors who have Imt a limited anioimt of time at their dis- 
 p)sal for Enjjlish studies; but the cxiicricncc of schools in which it has 
 been flie only Fn(,'li>:h (Jninnnar used, has shown that, when well mastered, 
 this work also is siiilicient for the fiOndon Matriculation Examination. 
 
J 
 
 r I 
 
 J. (Sage & (Eo'0. |Uto (Eiuratwiial QBlorks. 
 
 BEST AUTHORIZED ELEMEOTARV TEXT-BOOKS IN GRAMMAR. 
 
 Revised Ed. Miller's Language Lessons. 
 
 Price, 25 Cents. 
 
 PRUOre OF TUB BUPBRIORITT OF MILLBR'8 RBVI8BD BDITION OVBB ALL OTIIRItS. 
 
 Its enormous sale 
 
 Nearly two hundred thousand have IxiOD sold within the last four years. 
 
 Miller^ Swinton'3 is authorized by the Education Duparttnunt for use in 
 the Schools of Onlaria 
 
 Only Edition adbptod by the Protestant Board of Education of Montreal, 
 and used in many of thi; principal Schools of the Province of Quebec. 
 
 Only EdltliQ used in the Schools of Newfoundland. 
 
 Only Gditiia ad ontod by the Oupt.of Education ftr thcSchocIs of Manitoba. 
 
 Miller^ lloviaed Swintm is used iu nine tenths cf the principal Schools of 
 Ontario. 
 
 Only Edition preyed as an Introductory Book to Mason's Grammar, 
 both having the same Definitions. 
 
 A W'JKCUUQ BXAHINATIOM QIVBM. 
 
 To the PresWent and Mcmhcrg cf the (vcunty of Elgin Teachers* Associa- 
 tion : lu accordance mxh a nK.tiun passed at the last regular mectinfi^ of the 
 Association, appclntii,g Iho ui:dcrsigncd a Committee to consider the re- 
 spective mertta of di&cient English Grammars, with a view to sugpfcst the 
 n»08t suitable cue lur Pullic SthocIs, we beg leave to report, that, after ful- 
 ly comparing the various cdition.<] that have been recommended, we believe 
 that " Miller's iJwiutonS Language Lessons " Is the best adapted to the 
 wants of Junior pupils, and we would urge its authorization on the Govern- 
 nient, aiid its introduction into our Public Schools. 
 Signed, A. F. Bdtlkr, Co Inspector. J. McLban, Town Inspector. 
 
 J. Millar, M. A., Head Master St. Thomas Collegiate Institute. 
 
 A. Stbxlb, M. A , " Orangcville High School. 
 
 N.Caupbbll, " Co of Elgin Model School. 
 
 It was moved and seconded that the report be received and adopted. — 
 Carried unanimously. 
 
 To avoid mistakes, ask for Miller's Swinton'& 
 
 Mason's Outlines of English Grammar. 
 
 AUTHORIZBC FOR USB IN BCHOOLB. 
 
 Now and Improved Edition. For the use of Junior Classes, by C P 
 Mason, B. A., F. C P., Fellow of University College, London. 
 
 Sixth English, and fourth Canadian Edition, price 45 cts. 
 
 From the Daily r*..: : - 
 
 Mr. C. P. Mxtv, -v .•„.c . 
 izod text boo'. ' I ■". Scj. ' 
 cmentary and ,; ni. d..:: 
 The text of thl. »' i^f ta ^^'V 
 In both matter amj .ui ;5-, >■■ 
 are cither omitted or vcr^ >. 
 
 •into, 
 
 •: '! iit "English Grammar" is now thcauthor- 
 ' Ontario, has prepared and issued a mopc cl- 
 :: , ,r)-- entitled •'Outlines of Flpglish Grammar." 
 " .'tiddly the same as that of the larger treatise 
 
 .:•-.: i/Jiat tho very elaborate notes in the latter 
 
 Mioh reduced in extent. 
 
M. J. (iage ^ €00. git\x) (!5bunttional @Q:otk0.- 
 
 KXAMINATIOiN SKRIES. 
 
 Canadian History. 
 
 Ry Jamks L. IIijuiiks, Inspector of Public Schools, Toronto. 
 Price, 25 Cents. 
 
 HISTORY TAUGHT BY TOPICAL METHOD. 
 
 A PRIMBR IN CANAniAN IIISTURY, FOR BCilOOLS AND 8TUUKNT8 PRKPARINO FOR 
 
 EXAMINATIONS. 
 
 1. The history is divided into periods in accordance with the great na> 
 tional changes that have taken place. 
 
 2. The history of each period is given topically instead of in chronolog< 
 ioal order. 
 
 3. Examination questions are given at the end of each chapter. 
 
 4. ExamiTiation papers, selected from the official examinations of the 
 different provinces, are jjiven in the Appendix. 
 
 5. Student's review outliiioa, to enable a student to thoroughly test his 
 own pro<,'rcss, are inserted at the end of each chapter. 
 
 6. Special attention is paid to the educational, social and commercial 
 progress of the country. 
 
 7. Constitutional growth Is treated in a brief but comprehfenslvc Aor- 
 ciac. 
 
 ff^ Ry the aid of this work' students can prei>arc and revjcw for exam- 
 inations in Canadian History more quickly than by the use of any other 
 work. 
 
 Epoch Primer of English History. 
 
 By Rka'. M. CiiKioiiTON, M. A., Late Fellow and Tutor of Merton College, 
 
 Oxfoi-d. 
 
 Authorized by the Education Department for use in Public Schools, 
 and for admission to the High Schools of Ontario. 
 
 Its adaptability to I*ublic School use over all other School Jlistories will 
 bo shown by the fact that— 
 
 In a brief comi)ass of one hundred and eighty pages it covers all the 
 work required for pui)il.s preparing for entrance to High Schools. 
 
 The price is less than one-half that of the other authorized histories. 
 
 In usiii;,'- the other Histories, pupils are com{x;lled to reati nearly three 
 times as much in order to secure the same results. 
 
 Crcighton's Epoch Primer has been adopted by the Toronto School 
 Board, aiid many of the principal Public Schools in Ontario. 
 
 • I 
 
HE. S' (^^Qt <& €00. Ileto (gbucational SBorkfl. 
 
 \< 
 
 The Canada School Journal 
 
 IIA8 RKCEIVED AN Hf)NOHAni,K MBNTION AT PARIS KXIIIBITION, ""STS. 
 
 Adopted hy nearly every County in Canada. 
 RcnoinincndtHl by the Minister "of Kducation, Ontario. 
 Recommended l»y tlie Council of PulJio Instruction, Quebec. 
 Roconinu-ndcd by Chief .Su)>t, of Education, New Hmnswlck. 
 Rccommendec; )»y Chief Supt. of Education, Nova Scotia. 
 Recommended by Chief Supt. of Education, ritiHh (Jolumbia, 
 liooommctidcd by Chief Supt. of FIducation, Manitoha. 
 
 IT 18 KUITKI) BY . 
 
 A Couunittcc of some of the Loading; Eklucationists in Ontario, assisted 
 by able I'rovincial Editors in the Provinces of Qticbec, Nova Scotia, New 
 iirunswick. Prince Edward Island. Mamtclm, and British Coluuibia, thu» 
 having each section of tha r>ominion fully rcprcaciitcd. 
 
 CONTAINS TWRNTV-FOUR PAGES OF RKADINU MATTRR. 
 
 Live Editorials ; Contributions on important Educational topics ; Selec- 
 tions—Readings for the School Room ; and Notes and News from each t'ro- 
 vince. * 
 
 Practical Drpartmrnt will always contain useful hints on methods of 
 teaching difTeront s\i})jects. 
 
 Matiirmatical Drpartmrnt gives solutions to difficult problems also on 
 Examination Paixtrs. 
 
 Official Dbpartment contains such regulations as may )>e issued from 
 time to time. 
 
 Subscription, $1 00 per annum, strictly in advance. 
 
 Rrad tiir Following LwrrKR from John Grbrnlkaf Wiiittibr, thr Fa- 
 
 Moi;s Amkkican Poet. 
 
 I have also received a No. of the "Canada School Journal," which seems 
 to me the brightest and most readable of Educatioiia Magazines I am very 
 truly thy friend, John Oreenlcaf W'hittier. 
 
 A Club of 1,000 Subscribers from Nova Scotia. 
 
 (Copy) Edication Officb, Halifax, N. §., Nov. 17, 1878. 
 
 Mossis. Adam Millrr&Co., Toronto, Ont. 
 
 Dear Sirs,— In order to meet the wishes of our teachers in various parts 
 of the Province, and to secure for them the advantage of your excellent 
 jMiriodicaJ, I hereby subscribe in their behalf for one thousand (1 ,000) copicw 
 at cliiJ) itites mentioned in your recent esteemed favor. Subscriptions wil| 
 begin with .'iiiuary issue, and lists will l)o forwarded tv, your office in a few 
 days. Yours truly, 
 
 David Allison, Chief Supt. o( Education. 
 Address. W. J. GAGE & CO., Toronto, Canada 
 
 
r