t>. .0.. \^>^^ IMAGE EVALUATION TEST TARGET (MT-3) «? « ^-^-^ 1.0 |2|8 |25 1^ 12.2 1.1 f.-^l 2.0 ^ Wis L^ I U 1 1.6 i HiotDgraphic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. MS80 (716) 872-4503 :i>li ;i(C(iuiit .^iuiiliir (o tliu Dlixlcl. J III. 1. Tlio pro))ii(ti)i invests ciisli S"^-!?. .")(). 2. Iicc'civcd casli for mcrclian- (lisr 81'"^7.ll'. 3. S(.1<1 Meivliandise lur casli. 8587. 07. 1. J'aidfjisli I'or .^rfrcinindisc, 8l'.t;{.>5. 5. HdUirlii Mii-flKuidisc lor ca-li ^2*.'{.;)1. 11. I':ii(l ciisli i'nr our ndtf lUvor .loliii Joih's, .SlUT.l'!. 7. r.iiij (M^li t;,|- nnl of stoiv, .-i-lTl.!)!!. S. ll.iuittrd (visli lo 15. lirivvii nil ac'-ouiit, Sl^:!!..')!]. !l. litiit II. (.Mark, cisli, .STS.'.tU. lo. |{,,rro\v,d lasii. .sir>i;;.i.'>. n. i',,mi'i 8i;;i;.t."). i-:. I{i (•(■i\i.'d ca-ii ti r.I. Task, r's not,'. #^42.2.') and lor iiitiicst diir on Minr SllM.'J. \'.\. lii'ci'ivid iMsli Croiii .Idliii |)iiiiii on account. SlST.i;;;. I-l. l',,!,! i!,i.,kkc(|.cr.iii accnimt, B'uM), also clcik, .;o when he gets out of our debt. When the Or. siih- is the larircr he owes us, and wiicn the Cr. side is the lamer wu owe him. When the sidis are 0(|Ual tiie account has been .settled. \Vlieu we have a tiMiisicLion with a piivou and ii.imcdiate payment i.s made, there i.s no iieccs-^ity to open an account with him. as there is no indebtedness existing.' between the parties. 3ioi)1<:ls. (Open .1 separate account with each person, company, &c.) Feb. 1. J. J). D.ivis owts ns on acrount 8122. 2. Wo owe 11. 15uio, on account 62;?2. :{. Sold J. Tabkcr Merclian.lisc on account St;S2. 4. IJot. ^ferchandi.se of W. .1. Davi.s, on acnuint 82i;>4. 5. Sold J. 1). Davis l)id ol'^'oods on account 812;{S. (>. liot. of II. Ihiie on account 100 brls. of Flour, .a 8*;. 12. 7. I'aid W. J Davis in I'liil ol' account 8 — 3^- Hici'ivcd of .1. 1). Davis ej.-h in account SJ;^^ it. Gave 11. Uuie, easii !?,'} 4 I and • ur note fb'- the balance of a.-count. 10. Sold J. D. Davis, bill of •.ioois per Sales Book, SIHS. 11. H(.t. of 11. Biiie, bill ol'iioods per invoice, $i\{)0. 1)K. .r. I). DAVIS. Or. Ill' owps II?. \Ve},'i't ; We owe him. lie out ot" liis Join. gets out of our debt. Feb. t 132 Feb. 8 ;!44 1238 "1 10 ; ■M» 1 i ... 1G7S — 1 1(!"8 Du. II. lU'lK. Ch. IIo owes us. We get out of his debt. We owe liini. lie gets out of our debt. Feb. 9 ti 344 500 1444 — Feb. 11 232 G12 600 1444 Dii, .1. TASKKK. Oil. owes us. We get out of his dibt. Feb. 3 682 We owe him. He gels o' t of our debt. Hill J s M, W. .1. liW IS. t'u. lie owes U.S. \Vf ;,'(.t <\ Wr ow.' Ijiiii. lie out ofhU (It'l)l. I ;,'i't- oi.. .itdiir ilcl) F.'l). ni IVl). I 4 !| 'Ji:!4 KxEucisi:. I''..|,. ]. \v. II. |,„„„ „wi's us on .ICCdlHlt .S."i;;i.l [, iUI'l we (iWr J. .l,ilK\^ till account SL'T").!'."!. 'li. 15iit. (.f 15rv:iMt it Co. oil iicciiuiit hill (if li Is. .'<97ri,7,"». .'!. Sold \V. li. I>iinn on iicvonnt liill of-Dod- per Sales l!,M,k. Soli.lKI. 1. IJcccivid d W, II. jtuiiii, cii-li on ai'i'o 11 n t, .^ :,'»>;! 20. ;"». |)fiio.sit"(kM,'-Ii ill Colli'-c l>iiiik,.'?2,.jUU. ."). 'I'licre is one inontii's vaJary iliir iliis ,1 ;y to M. .MoiMii. ljookk(r|Mr, ?>ln(». i;. Ihvw iVoni Colloiro i;,,,]^^ J,,,. ,.|i,ck (M.-li, s^dd. 7, Paid .1. Jont's, (.m>1i on a'-riuint, .'^lOd. 8. lU'cc'ivi'd (if W. 11. Dniin. cadi on ticcouiit. .Sl,"»(l. It. lint, ol' IJiyant \ Co. on account 20(» Inls. Flour at St;.].'), lit. Sent to Slcaincr .Montical, [kt cnntract, ii"'icliandis(j)irliill r iidm; i, .?1S7.2."). lO. Olio nionth'.s, salary due II. KinLM-dcik. tlii.s (lay, 8.];». 11. (iavu .1. .Junr- on aci'ount our note l(ir 8 1(1(1. 11. I'.iid 11. Kini:, ca.vli on account, i'^i). IJ. l';ii,l M. .Muraii cash on account, S'lO. j2. (iavc Biyant ^: Co. our note lor hill of tji, 2nd inst. i;5. (jravc J. JoiH'S oiir clu'ck on Collcp; I'ank for baliince of his account. Id. Bot. of S. Smith, bill of ,-;oods per invoice, S129.;{8 and paid him cadi in full. 1."). (lave M. 3Ioraii, nurcliaiidise on account. ,<25. llule the accounts, write a letter yivinu- ^tandiii'j; of each account, aiidg(t your work sij,'ucd by tli; teaclier. 3. ]iILLS llECEL^^VULIv (Bids II,c.) / Bills Jlcceivablc consist of other people's notes, acceptauces, &c., for which wc are to receive payment. The aceniint i.s kept to show tlie iimount of other people's unpaid notes, kc, we have on haml. It is Dr. when the notes are received, and (.'r. when they arc disposed ol' III any manner. The dill'erence between the ^ide.•^ is tiie aiiionnt of notes, itc, on iiand. When the .>.ides are eijiial all the I notes, i*ce,, liave been di>po>ed of. The Cr. j side ciin iii'ver be the lai-jer. i .MnDKl,. .March 1. We hn c on hand jS. Smith's note $l2riO. 2. Keecived ofli. Brown his note for 8-t(l(). ;{. JieeeiveJ ea>li for S. Sufith s note. 4. Sold W. Lcs- peraiice bill of liood.^ 875(1, and received in payment his note at UO days. 5. Bot. merchandise and uave in payment K. Biown's note. jtii. lillJ.S l!i;c. Cii. Otliei- in-ople's notes, idtlier people's notw, i.^c.. iceeivcd. Ac., disposed of. y •..XKKri.SE. March 1. Commenced biisine» haviiijj; on hand the following notes: E. (i. Folsom's for 81:^75.25; J. D. Wil- sin's for 8'J38.45; 11. C. Spencer's for 8o!)5.18. 2. Sold J. Jones on his note bill of goods, 8 Il.'(i.38. 3. Received cash for J. J). Wilson's note. 4. Keecived of J. 'I'liom-^on on account bis note for $433.33. '). l)ot. merchandi.se and gave in payuientE. (i. Folsum's note. 6. Got J. Thoin.son's note discounted. 7. Gave R. C. Spencer's note in pa:t payment of hou.so and lot. 8. Dis- — counted for II. Buie his note for 8547.75. 9. Received J. Tasker's acceptance in full of account, 8G54.17. 10. Gave W. J. Davis, on account, J. Jones's note of 2nd instant. ■ 11. Received from E. Laurendeau in full for intorc8t on nioit>:;iL:c, his iiotr |nr .■>! 1 (.."id. s.il II. ('. ('laiki', hill of jjodils unci rocciv- Wliiit is till' aiiHiiiiit III tlic Mi'ts 1^1 liiiid'/ I'll ill |,:iyiMiiil II V iii>ti' faviir J. Tii>kor. Write jciv'T iiml ^t ymir work jia^stil hy till' triiclier. (I. ISiit. Iiiill.-r :ilii| lilt, mill -avc i'l part piiy- imiit (iiir note fur ifKiUO. 7. W.J. I>;ivi.s I. HILLS I'AVAilL!';. ( I5ili> l':iy. ) ' owi^ ii- mi airniint. :iiul ivturns us in jiirt Ii;ii< p.,,. M ;. I- . ! Iiivnii'iit iiiir niitc(ir2iiil iii.xtiint. S. Arccitt- lillls I a\Ml)ii' cnii^i^t III mil imtrs. .ici'cii i' • ' , v..',.!,; ., , 1 11 I'll 11. I'.iiii's ilraft on lis lor 81700. !>. tillli'i"', iVf., will arc III lir [iihi liy ii.*. 'I'l, , , „„ .. , , , 1 . . 1 l*:iiil IV('ii:Iit on iiii'ri'liaiiilisc by note at 'M I 111' ai'coniit i> Ki'iit to slmw mir I'Ut .-tiiiiil- | •' ;,„, „ ,.. V,. ti .,' ; ,1 . . V. ■ iilavN «?-!<>. III. Lmt S. S. I^ickanl our 111'.: ii'iIl's. iVc, that i> ilii' iiiitc'.v, iVc, nn- i •' ' lai.l. It is CrwIuM our Miili.^.ir am iitancTs I """■''"'• '^-•'"- H- '^'^-^'ivcl Iron. K. are -ivni, ami l»r. win i, tl„v aiv n ,|,. n.nl | <'1'=""I'"-"'' '" Iml ofacount. our ,im.,.tanco I 1(1-.. 1 . .1 Hivoiiiril. I>. Strattmi I'or S — .andournote 111' illli' I'l'lli-c sIli'Ws till' ' t'avnr S. Siiiitli, I'nr 1?—. 12. I*i;id cash in any nianiur. nntrs, iVc, ontstamliiij:. Wlim ilic sidrs an .'MMal all our iiiit.'s. .Vc. liav.. iKrn lui.l. ""' ""'' ^'^•^•- !''■ ""''• '-'V"'- H- «uu. l.'J. Til.. I>r. sill., .'an i,. v.r 1„. .In lai-.r. ''•'"' '""'-''' "" '"-•'•'••"""•'^« h ""t^' "t HO .M.iiiKi,. Aiiril I. W.. iiwv .m.-uriKitc ''^'.V- •-'>■ -^1 •''"••'• I- Sli.')l)l). 2. J). it. nR.rcli.'iii.lNc ami l'mv.' mir n.itc lor iSoOO. ;{. Gav.. .1. Tii^k.r nur imt.. in lull of account, S.'JOO. J. I'aiil ra-li 1'. r our note of 'Jul in-t. ."). Ai.e..]iteil \V. II. .|)unii's ilral'i mi ii> lor liaK'uii'.. ol aci-iiiint. StIOO. (1. (.'avi' I'lii'i-k mi ('nll.'m' M;;iik liir our note favor if ,1. Ta-k'r. Dii. i:iLL.s I'A'i-. (•lir lllltl'-:, iVi'., I.fiiirllii.il. ( iiir mill s, .Vi.., jrivcii. April. Dili. 4 i ."■II.) ;aio :uoo 1 1 IWOii 11 Wli'it is till' ain.iiiiit of our outstan.liiii; n.it.s? \\'riii' hit. r ami uct your work pasM'd. f). .MKIICIIANIUSK. (.Md.M-.) v^ 'i'lii.» titli' i> nx'd to di..>-iL:nate goods of i all kinds l.nu'^lit liy ii> for trade. Th(. a.... mint is nuiiiro.l t.» show tin' irain or I.).ss ivsultinu from buyini:' and sellirii^ Cu, uootls. It is Dr. for the cost, and (Jr. wit'' ^ — llic jivo.'i'(.ils. Wlun the Jlr. is the larger, the dillen.iiee is a lo>s, ami when the Cr. is the laru. r it is a ^aiii. FiK.sT Miini'.i,. May 1. We have on liaml ;.:ii.i.l> viiliied at S2500. 2. Bot. goods for e i>li, SiiUil. :!. Sold goods for cash) §1S(I0 4. 15.it. mi our note 50 harrels Flour at 80, §:!(I0. 5. Sold J. Jones on his hote-.iods per Sales li.iok, $2'M0. ExKltci.>l.sK, Ck. May. I);". 00(1 67-1 May. Note.— The Inventor;, is Ibuiid by i;(.iii- to thf warehouse or .•^helves wliero the j^nods are keiit, and asccrtainini: the ((uantity. At-., by inspection. Tip's jiniciw is M'cni rally called "takin- stock." It is usually ent.ivd at the cost j.ricr. It is. however, strictly- correct to valaetheo(„„l.sat what they wuuld co.st us at the time of taking- tin; iuvntory. If the goods are daniai^eil, an estimated value uiu.st he placed upon them. ExERCi.sE. June 1. We have on h:.n,I goods valued at SL'iJH^.L'D. 2. l]ot. .Mdse. for ca.sh, S312-).(;(». ;{. Sold !'. Kcrney for cash Md.s,.., 8I2;{5.25. 4. J{ot. ,.n ou'r note bill of goods, i?2r)75.40. and paid cash for freight on .same, §257.5-1. 5. Sold J. Duft'on his note, at 30 days, hill of goods $2452.48. (j. Gave D. Kelly in full of account Md.se., 81317.35. 7. Received from Geo. Wade for intere.-t on his note to date 100 bu. Wheat at $1 .10. 8. Sold f<,r cash, 100 bu. Wheat at §1.12. !). Gave T. Seneca] for interest on our note to date Mdse., 8973.11. 10. Shipped T. G. Davis,' London, Out., bill of goods amounting t(') $513.25, to be .sold for u.s. 11. Value of unsold Mdse. per Inventory, sS3875.75. What i,s the net gain or lo.ss? Writ' letter and get your work passed. «. STIII'MKNT. fShipt.) II we send goods to an agent or comniis. sion niereliant to he sold f,,r us, and desire to know till- -!iin ..r loss nn that particular lot of -;o(Mi.s it will be necessary to open u i mw aeeouiit with the goods thus shipped, j which may he called " Shipt. to" (put the name of the person to whom they an! sent, m- the place where he lives, in the Idaiik space). When it is desired to show the gain or lo.ss on each Shipment separate accounts sluuild ; opened with each, thus Shipt. to Quebec T'o. 1. Sliipt. to (iuobce Xo. 2. The aeconiit is kept similar to the Mdse. aecnniit. It is Dr. i;,r the cost, and Cr. with th(.' netprnceed.-. The difference is the i:ain or loss, but wlini the goods are not all sold, the imsold must be entered on the Cr. bi'l'oie taking tlir difference. -Mdse. .iceouiu ri pre.siiits goods bought by u> :m i leiii.iiiiiiig in our possession to be .sold 1)}' ns. Shipment account rei)resent.s <^oods • •ought by u^, but sent to another person to be .sold by him for us. ^ -Mom;r,. July 1. Shipped Kilgour & Co., Toronto, to be ..'!. U. Uceiiivinl IVoiii T. G. Davis iiit iu'Couiit siili's of .M'Im'. ijlii]ip(td liiiii on Iht iii.Ht. ; our lut pruci'cd.s are «1U75.413. 4. Shipixd T. (I. Davis ii Hocoiid iiivoicf of ijoods to Ihi >oM on our account, ainouiitiu:; U>ii'SM^i.1'}. .'>. !!< rein- ed cuhh from J. 1). Irviii lor in.t procoods of sliipiiR'iit to him on 2iid in>t,, Htnountini; to 8550.12. Inventory, Sliipiiii>nt to London, Nu, 2> MltURKAU'S CONST. CliarttiM mill lut I'roci'uil!*. .•pi. L :ii) I I 2(1 1 800 J SiilfS. Si'pt. 800 800 is valued lit $1900. Wliat is the <^ain or loss on cacii ,-hip- inont ? Write letter and iret your wmk passed. V 7- CONSIGNMENT. (Const.) When poods are sent us to be sold on account and risk of the shipper, tiny still belonp to liiiii, eunseijmiitly we ilo not owe liim anytliinp until they are soM. Wo arc responsible, to aceitiin exti lit, for the safrty and j)reserv;ition oftlie poo^is, and are Ijcuiid to bestow at least the siiiue amount of eare and attention i pon them as a man of iiverapc prudence would exercise in the keepim; ol' his own. We make iioenlry for what ihe poods eo>i the shipper. The account is l>r. i'nr all charire.s, .such as freiplit, storai;-', iiisui'.'inee, and our commi.ssion for selling the uot)'ls, also for the shipper's net proceeds. It is Cr. witli the sales. The difference lietwecii tlie total ehariios and the sales is the shipper's net proceeds, that is, the net amount he is to receive from us for iiis poods. Model. Sept. 1. lleecived from J. 1?. Morreau, Quebec, tu be sold on hisaecount and risk, Mdse., 8504. 1.'. We pay the fieipht in cash, 830. H. Sold J. «. Mor- reau's poods for cash S'^OO. 4. Sent liiin an account of the sales of ills ^'onds ; our ehaiue for commission is 820 ; his net proeeed^ amouut to 8750. K.XKinisK. Oct. 1. Ucpeivcd from L. IIo_':iii, New Vork, invoiei' of poods amount- in,' lo !?2,440, to be .sold <>\\ his aeeount and ri>k. 2. I'iiid duties on same, 8f>lO, al.so fn ipht. 81!^ iu eash. ."{. Solil L. Ilopan's poods I'or eash, 84127.50. 4. Iteceivcd from .\. T. Gait, Chicapo, to l.e sold on lii.M aeeount and risk, 500 brls. Flour, invoiced at«'4.50, 5. Paid Iiviulit20e. per bii. 6. Closed ilopan's '■oiisirnmrnt, and sent him aeeount -ales. Our ehaiu'es are: storage, .^12.50; insurance, 8ii.lO; commission on sali's. 81(l.:.19. Ilisnct.proeeedsare 8— . 7. Sold from Gait's eoiisipnunnt, 300 brls. Flour at Sf). >^. Clo^d Gait's consipnmeiit, I and .Hjnt him an aeeount sales to date (200 ^w*? Klour unsold.*) Our idiarpcs arc: storapc, 5?1."( ; insuranee, 85.50; cooperape, 87..)0 ; eoinmissiiin on sales, 845. Ilia net proeetMls to date are 8 — . What aie the net proceeds of each eonsigiinient ? Write letter and pet your work passed. S. REAL ESTATE. This account shows tiie pain (U'lo.ss result- ing from owning or dealing in houses and lands, it is kept like .Mdse. aeeount, being Dr. for cost and Cr. with proceeds. The unsold, if any, must be entered on the Cr. # *As (he eust of llic ^'ooils was not fiilfred on tin- l>i'., till' villik' of till' Wlisolil /;(l/.v/ lint be euleiTil 1)11 tla' Cr. like llif iuvfatury in iMdse, account. # Mmi.K. N.,v. I. UV own houses on .M..,.k.,. .I,m. I. I'ai.l f,.,. H...nin. stop. K.ol.moml 8.,»are, valucl at 87500. .'. ^iJ.;..,. J. |'„i.l (J;,s l.,il, sll no .Jl'.i.i .■..■.VH..I c.«l. (or rent, 8I.;o. :;. |{ou,l„ nnf in ...si, 81:>5. J. h.;,! „,«;.„ [..y lor I...UH. ..r «.i;,00. 4.J'ai.norn,uirs.25. I w.^k, «:i. 5. Mot stnt ory lor .Jliec. ...N.M ho.H. for cash. ^KMK,. .1. Value »<1 1. .). On- n ths salary .In. the hook- >i' iiDMol.! pr.ipcrty, gSOOO '"'• HKAL KSTATK. (J II. Coit. .Nov O ",")0(» ;i5on IL'UKI I'rocce.lH. .N'ov. [CO ■JOIMI I •.'Kid kee|i.r thi.s .lay, i^HUt l)H. EXI'KNSK. Cr. Juti, ExKK.rsE. Dee. 1. \Vc own two houses ■mil lots value.l at «:»r;00 an.l 80700. 2. Taitl taxes, 812G.25. ;{. U.-eeivcl cash for rent. 850. 4. I'ai.l insiirnnec. 827.50. f.. |{oi|M;lit hous.' and lot for 82800. (1. Sold house and lot. 8 _-— «.-. i ExEucisE FOR Expense anh Com- MISSIO.N A.'COUNTS. (Open a separate ae.im.it with each.) March 1. Dot. Iji'iom, .sprinkler and duster, 81. .')0. 2. "aid for painting and cleaning ofliee, $25. !l V 3. Keccivivl for com. on (!^tllcction^<, ^fi2.r)(l. 4. Paid for iiote-piijur and ink, 8-. -SO. 4. Bt dur on Oiir note, 857.75. 2. Received e:i.b for inleiest on 11. Hood's note, 81''{. 25. ;;. (iave J. Mooney, 50 lbs. Tea at 50e. for interest due on our note. 4. .1. Jones gives us 40 1)U. WhiMt at 81. Kt for interest on liis note. 5. (Jot our note for 810'I0 discounted at the Bank. p:iying interest in advance, 812.50. (■). The Rank di.sc(.uiits II. Irviii's iiot(! tor us, ''ctaining 815.75 for interest. 0. R(ceived irom J. (J. Young, 8115.42 tor interest on mortgage on Ids liouse. 8. The amount due from A. Dorion on account will not be due ibr 2 months, but he pays us now, and We allow him a discount of 817. ;{5. 9. II. Sims paid us for his note before it w:is due, and wc allowed him 811-5;{ dis- count. 10. II. Huie allows us 810.80 dis- ciunt oft' amount owing him on account. 11. Paid our note favor W. J. Davis at a dis- count of 837.50. AVhat is the gain orlo.ss':* Write letter and get your work pas.sed. 12. STOCK. The word '' Stock, " when used as the name of a Ledger account, simply means the proprietor of tlie business ; but^ il desired, his own name may bo used instead. The word "Stock" does not repre-ent goods or projierty whe.i used as a ledger title. Property of all kinds is usually called Resources or Assets, and debts of all kinds are called Liabilities. Tlic Stoek account i^ k-ept to show the ))ro|.n\,t,.r'> not cupital, „r net iiis..Ivoncy. If IS Dr. fill- tlic proprietor's lialoiitics .'it tlii^ Lcgiiuiiiiu; of the busirifss, iunl cri'ditrd wiHi Lis rcsourcoH. The diff: rcnco is koouii l>.y sovcral names liaviri- the -ainc mcanin-:. When tlie Cr. side is the lar-, r, the dimT- once is sometimes called his Net Investment, Net Cipitai, or Present Wortli. When the l>r. side is the lar-er it is eiillrd his Net rnsolveney. , Durini;- the year the Stock aecount is ')r. for all sums drawn out by the proprietor for his own priv He jJurpoM s. imd Cv. with all additional investments. At the end oi' the year it is also |)i-. i'-r the net loss, or Cr. with the net -a.in. Tlie ditferenee will then sh,,w the proprie- tor's net capital or net insolvency at the end of the year The net capital is the am.auit of pro- poity remaininj,' after all the debts are pai.").-ir); amount owinj,' to him by W. J. ! Davis on account. S-KU.:),") ; I)y II. lUiJe |S2:U); and by 11. D. Stratton, 8770. The j foilowiii;,' arc his liabilities: lii> note favor \'L l>. l^avis, 8122S.7r); amount owin- to I B. (rof}"& Co. on account, 80!.'), and to W. jO'Ilara, 828r>.;J8. 2. lie draws out lor I private use cash, 8140. :}. He invests I warehouse and lot, 83500. 4. He drew lout 3I(Ue. for family use, gKJl.').'). "). Withdrew cash 8200. 0. Invested cash ,87r)0. 7. Invested horse and dray valued at 8250. S. The net loss durim; tlie year is 8174,'). IS. What was his net investment at be,-in- ^ niiii:, and his net capital at closing ? Write lettv'r and get your work jiassed. M. STOCK. iht. r/mbil ilic:- . sums Resources, udditiunal drawn, net loss. investment, net gain. Jane 1 'J l.'.OO 100 June 1 1 :i 4 5000 2100 2000 I) 100 _ 'JlOO 1:J. PAIITXI-PS' A{7COU\T3. When there are two or more partners in the busines-;, it is not customary to use a Stock account. A separate aecount nuist be kept with each partner, into which are entered his resources and liabilities .similar to Stock aecount. At the end >. Tiie net loss durinu; tlio year is SUTOO, wliicli is shared equally . Wiiat is each partner's net capit;!! at closing ' Write letter and get your work passed. Note. — The stock and partners' ac- counts are sometimes considered and treated the same as the personal accounts, as fol- lows : The business owes the proprietor i'or all sums given if by him, and I'or the net gain. He owes the business I'or all debts it agrees to pay i'or him, and i'or all sums re- turned to him by it, also for the net loss, as It is presumed to be the result of his actions. Wiien the (Jr. is the hirger, the business owes liim, and when the Dr. is the larger lie owes the business, [t is for these rea- sons that in anj statement sho\ring the Resources and Liabilities of the business the proprietor's net capital will appear among the liabilities ami his net insolvency among the resources. REVIEW questio:ns. 1. Wiiat is Dook-kccping ? 2. Wlicre and how are the results shown :• :'.. AVIiat is a ledger account ? 1. How many sides has each account? :>. Which is the Dr. side? Which the Cr. 15. What does the difTercnce between the sides of eacli account show ? V. What are you to learn from the following exercises ? H. What is the Cash account kept to show ? ;•. W'heii is an entry made on the Dr. side '.' 10. Wlien on the Cr. ? 11. What will the footing of the Dr. show ? 12. What the footing of the Cr. ? 13. What will the dillerence show ? It. Mow can the correctness of the Casii account he proved ? l."i. Which ide can never be the larger? KJ. Why? 17. What is a personal account? 18. What is it kept to show? I'.i. When are entries made on the Dr. ? 20. When on the Cr. ? 21. When the Dr. is the larger wliat does the account show? 22. What when the Cr. is the larger? 2:!. What when the siii 's are equal ? 21. AVhen is it utinec ssary to open an account with a person ' 2,0. What are Hills Keceival)le ? 20. What is the account kept to show ? 27. When is it Dr. ? 28. When Cr.? 2'.i. lai. :ji. :',;!. ■M. IIT). ■'!'!. .■!7. ;f8. 30. 40. 41. i42. i4r!. I 44. ! 45. 4(1. 47. 48. 49. 50. ."il. 5:1. 54. What is shown by the difTercnce? W'hich side can never be the biiger? Why? What are Bills Payable? Wiiat is the account kept to show ? When is it Cr. ? When Dr. ? What is sl'iown by the difference? Which side can never be the larger? Why ? What is entered in the .Mdse. account? What is the account kept to show ? For what is it Dr. ? For what Cr. ? When does it show a loss ? When a gain ? Will the difl'erence always show the loss or gain ? ■ Wliere must the Inventory be entered ? What will the difference then show ? How is the Inventory found V At what ])rice is il entered ? When is it necessary to open a Shipment account ? How is the account kept ? What is the dilTerence between Mdse. and Shipment accounts? When we receive goods to be sold on ac- count of the shipper, to whom do they belong ? What account should be opened for the abo i e goods ? IT 5 5 58, M. 60. 01, 02. fi.!, *;,"). DO. 07, jS. 01). 70. 71. 7C. For what in the account Dr. Vor what Cr. ? Why not make an ciitiy fortlic iiivoico cost of the {,'oo'ls ? What do J ON undoistaiid by the shipiiciV iii't proceeds ? How are they found? Are the unsold goods entered as Inven- tory ? Why ? What is shown by lieal Ivstate iicconnt? How is the account kept? What must be done if we wish to show the gain or loss on each property ? Wliat is Expense account kept to show ? Wliat is entered on the Dr. ? How is the inventory entered? What is Commission account kept to show ? What is Interest account kept to show ? When is it Dr. ? WhenCr. ? When does it show a loss? When a gain? What will assist in ascertaining the Drs. and Crs. for this account? What docs the ledger title Stock denote ? Is there any object to using the proprie- tor's mime ? What do you understand by Resources ? WHmt bv Liabilities? 78 7!t. 80 SI, 82. h:;, HI. 8,-). 80. 87. 88. 89. 90. 91. 92. 9:'.. 94. 90 97. 98. 99. 100. . What is the Stock account kept to show ? l''or what is it Dr. at tiie beginning V i'or what Cr. ? . \y\mt is the dilference called when the Cr is the larger? . What when Dr. is the larger? . For what is the account Dr. diirinf the year? For what Cr. ? For what is it Dr. at the end of the year ? For what Cr.? . What is meant by net capital ? , Wiiat by net insolvency? , When is t!;crj a net capital ? When a net insolvency? Is the title "Stock" used when there are partners? How are the partners' accounts kept ? How is the net gain or loss divided ? How arc stock and partners' accounts sometimes treated ? What is placed on the Dr. of the proprie- tor's account? What on the Cr. ? In a statement showing Resources and Liabilities, where does the net capital appear ? Wliy should it do so ? Where does tha net iu.solvency appear ? Why should it do so ? the 12 CHAPTER II. PUJNCIl'LKS OK DOUBLE ENTIfV HOOK-KEKPINO. A ImsiiR'i's tiansaetioii is an exchange of values, tliatis. every time nnytliinu; ol value is jj;iven somctliinir of value is received. Tn DouMe Entry Honk-keeiiinii a reeonl is kept ol' wliat is ixiveii ami also of what is reeeiveil. Every transaction will therefore re(|uire at least two entries upon tin; Ledi^or, one on the Pr. of some .'lecount and one on the ('r. of some other account. The amount of the Dr. entry must be exactly e(jual to the amount of the Or. Enter the following transactions in a " Skeleton Ledger," as shown in the model below. Entering transactions in tlie ledger is called Posting, Jan. 1. J. I). Davis invests cash, $5000. 2. Bought for cash 200 barrels Flour at 80. :}. Sold for cash 75 barrels Flour at $7. 4. IJouglit for ca?h 200 liu. Wheat at 81. 5. Sold for cash 25 brls. Flour at 87. 0. Sold 11. Buie for cash 200 bu. Wlnjat at 81.20. 7. Paid cash for clerk hire, etc., 810. 8. Tln' unsold Mdse. is valued at 800(1. Fnr the posting of the above transactions the detail- are uiniece.s.sary, only tlie fol- lowing /»>liits are requred to ascertain wliieli accounts are to be debited and credited : TOINTS. RESULTS. EXl'r,.\NATIONS. 1. Cash received (from proprietor) 85,000 = Cash account Dr. Scca/e. 1 page 1 1. Proprietor invests 5.000 = Stock " f'r. " 12 •' K 2. Mdse., bought (cost) 1,200 = Mdse. " Dr. - 5 " 1 2. Cash disbursed l,200 = Cash " Cr. - 1 " 1 3. Ca.sh received 52,') = Ca.sh " Dr. •' 1 " 1 :{. Mdse. sold Cproceeds) 525 = Mdse. " Cr. " 5 '• 4 4. Mdse. bought (cost) 200 = Mdse. " Or. " 5 •• 4 4. Cash disbursed... 200=Cash '• Cr. - 1 " 1 5. Cash received 175 = Cash " Dr. ■ 1 " 1 5. Mdse. sold (proceeds) 175 = Mdse. " Cr. '• 5 " 4 G. Cash received 240 = Cash " ])r. " 1 " 1 0. Mdse. sold (proceeds) 240 = Mdse. " Cr. '• 5 " 4 7. Expense ''incurred" 40 = Expen.sc" Dr. " '• 7 7. Ca.sh disbursed 40 = Cash " Cr. " I " 1 -MODKL UF SKKLI'ITOX LEDGKR. Dii, HTO(JK. Cn. 1)1!. MERCHANDISK. Cii. 1 1 1 ia8,s ' 1H8.S jl [ 1 ,H,SH 1 Jan. 1 .f.ooo Jan. •j! rjdo .lull. :! c-ir, 1 1 a'' 'JOO j 1 (J 8 175 240 * li • The inventory is not entered until alter ilie Trial Hiilanri' 'r.- taken. m Dit. CASH 1 S i 1 1 4 I I 1 4 1 4 Uit. Cii. I8HH Jail. 1 18h,s 1 ■VMM) "I'Ti Jan. 2 17.-. •-' Id 7 1 LIIMI JIJO 40 Dh. 1H88 Jan. KXPKNSK. Cii. 40 I All the tian.sao.io„,. are i.-.w entered, and bcH.re pruceudin- fartlier, it i.s advi..able to i.rove tlie eanvctne.s.s of tl.e Lclgor by taking a " Trial Balance." A Trial Balance i.s a trial t(. a.scertain if the .lebit and credit .sides balance It contains a list of all the unclo.sed accounts in the Ledger with the footing of the Dr. side ot each account in one column, and the footing of the Cr. .side of each in anotiier. The lootings of these columns .should b.lanco. If they arc not equal the Ledger is wrou- and mu.st l)c corrected. ° The Trial Ualancc is not a positive proof of correctness, for instance, a transaction uiiglit be entered on the propoi- side of the Ledger but in the wrong accouut. FOR.M OF I^OUBLE TRIAL BALANCE. The following is the most useful form of Trial Balance, and is tiic one wo desire to have used. The amounts in the inside columns are the footings of the Ledirer accounts, and they should balance. In the outside columns are the differences betwceu the foot- ings of e.ich account, and thoy .should also balance. TKIAL BALAXCK. Dii. Jjalanct'.-i. l)n. i''00till},':j. Stork. Ciish, Mll.SC. K.xiitnsc, ACCdU.VTS. Cii. Footings. Cu. liiilances. 4,-.0() 4G0 40 .VJ40 1400 10 5000 1440 040 5000 .■)OIIO 7:!8n 7380 5000 INVK.\T()RV. .Mdjf, loniiiiiiiiig niisukl valnoil at SCoo, u CLASSIFICATION OF AC(X)UNTS. After having proved the correctness of the Lcdtrcr, tlio next step is to ascertain tlie results produced by tlie transactions. This is Jdiic by dividing' the necounts luU) two ehisscs: one conaisting of acc(juuts l40 1410 4,500 Cr. Investment 5000 \et gain in l)u.sine3s(see N'o. 1) loo IlKSOt.llCKS. Pi'oprietor'.s Present Worth, GOO l.">oo Uoo I.IAIUI.ITIKS. 5100 5100 The proprietor's pre,«cnt worth is placed in the liability column. (For rea.sons, see Note on paj^c 10.) The main object of book-keeping i.s to show tlie condition of the business, that is. the gainer los.^, and the present worth, E^ery well-kept set of books will afford the means of finding thtse results, aud in order to obtain them many other desirable facts must be ,shown, such as the cash and bills receivable on hand, the amounts we owe on notes, per- sonal accounts, &c., &c. The above analysis show the condition ol' the business, and the next stop is to make the ledger show the same results, which is done by '• closing the ledger." CLOSING THE LKDGKR The. locl,^Tr on paj^^es 12 and 13 is closed as follows • 1. Open an account in the ledger for l.oss and Gain, to which will bo carried the difference between the sides of each llepre- sentiitive account. 2. Open an account for IJalancc, to which will be carried the inventories and the diff- erence bctwee,. tlio sides of each Heal account. (Kcsource and Liability would bo uiorc iippropriato title for this account.) ^ The accounts arc now to be closed. C'losMi- an account is putting enough on the ^U)aller side, in red ink, to make the sides equal, and then transferring that difference to tbj opposite side of some other account in black ink. . 3.,. On the Cr. of M.i.se. accunt, write '"rcdink"Ual. $G00." (This amount is the inventory, and the word " Bal." indicates that it is to be entered in the Balance account.) then 3 fj. Oil the Dr. of Bal.mcc account write in black ink " Mdse. $mO." (The word " Md.«c. " indicates that the amount was brought from tliat account.) 4a. Now dose the .Md^e. account by writing on the Dr. side in red ink " L & a. $14(»." (The L. & v.. indicates that the amount is to be carried to the Loss & Gain account.) then 4i. On theCr.ofLo.ssandGain account wrifo in black ink '• Mdse. $140." ^"- ^''''^^ '•'I'' <^''ish account by writin<-- 0" the Cr. side in red ink " Bal." $4 500" then 56. On the Dr. of Ji;,lance account in black ink write -'Cash $4500.' STOCK. r.loo Jan. 5000 100 r>i' > mp:rciia\dihe. Jan. i lioo 200 Jan. 175 240 I.IIO CASH. Jan. 5000 52.'; i7r. 240 5940 Jan. 1 200 200 40 r 5940 EXPENSE. Jan. 40 LOSS & GAIN. HALANCE. Mdse. Cash. GOO 4500 5100 Stock L S U Cut. ('lo8(! till' Expense acciHMit by writing on the Cr. side in red ink '• L. & Ti. S4(l " then 66. On the Dr. of Loss & (fiiiii awoiint write in black ink " Expense ^10." 7(t, Close tlie Loss & Ciain account by writing on the Dr. i-ide in red ink '• Stock iillOO." then 7h. On the Cr. of Stock account, in black ink, write '•!;. & 0. ^100." 8a. Clcsc tlie Stock account l)y writini.' on its Ih. side in red ink " Bal. 85100," then 8h. On tlie Cr. side of Balance account write in black ink " Stock S5100." If the work has been done corriictly 'he sides of Balance account will be ctjual. 9. Now rule all the accounts as shown in the model. IO;ieh account may be ruled as soon as it is closed if preferred. Note. — If the Loss >.^ Gain account in the abuvo ledger bo compared with An;dysis No. 1, and the Balance account with Analysis No. 2, on page 11, they will be found to show the same results. EXERCISE 2. Post the following Exercise in the Skeleton Ledger, allowing each account the follow- ing number of lines: Stock, 5; Cash, 9; .Merchandise, 8; Expense, 4; J. Demers, 4; W. Kennedy, 4; Bills Payable. 4; Bills Ueeeivable, 4 ; Loss and Gain, 4; Balance, ti. Feb. 1. Invested in business, Ca.sh S8000, and .Mdse. on hand valued at §4225. 2. Bot. Mdse. for cash, S239:}.r)('. :}. Sold Mdse. for cash, $.3r)41.80. 4. Bot. Md.se. of J. Demers on account, $1079.44. 5. Paid rent in cash, §75. G. Sold W. Kennedy on account, Mdse $5328.35. 7. Paid J. Demers cash on account, .SG79.44. 8. Bot. Mdse. on my note, $G7j).14. 9. Peceived from W. Kennedy cash on ;i count, $2000. 10. Sold Mdse. to J. B. Pominville on his note. $4171.90. 11. Paid ca.sh I'or my note of 8th instant. 12. Paid J. Demers, cash for balance of account. 13. Eeceivod cash in full I'or J. B. Pominvillc's note. 14. Sold J. Brenuan Mdse. on his note, $1325.33. 15. Paid advertising to date in cash, $145. 6. Bot. on my note a bill of Mdse. amounting to $2345.07. 17. The Mdse. remaining unsold is valued at $5314.75. The footings of your ledger account should agree with the amounts in the following "Single Trial Balance:" II i ] LEDGER ACCOUXTS, Dr. Ck. Stock 17713 17433 220 1679 5328 0790 .'•)497 70 81 00 44 3.0 14 21! 1222,5 11083 14;i07 "l079 2000 9)35 4171 00 Cash 14 Morcliandise 38 E XDCnse J Demers 44 VV, Kennedy 00 Hills Payable . 81 Hills Receivable 90 Proof ,'-)4C02 G7 54002 67 -IM It You luv requested to ruri;ish tlu; teaclier witli a double Trial IJalanec, an Analysis ol' liossos and Gains showiini' a m't'^^'ain nl' 82(>liS,;{2, also an Analysis ol" Uesourccs and liiabilities sliowin-.^ a net worth ol" 814,253.152. Tlicn <"lose the lodger and carefully observe the Ibllowin^ : ORDER OF CLOSING. 1. Open a ledger acedunt for Loss & Gain (if not already opened). 2. Open an aeeount for iJalance. ;{. Enter tlie Inventories, in red ink, on the (^r. side of the account that was debited when the propeity eanie into our possession, and then enter them on the opposite side of Halanee in blaek ink. 4. Pass the Stoek account, ant close all the others to the Loss & Gain or Balance account. Note. — When the ledger contains many accounts a second Trial Balance, consistinj; of the lootings of Stock, Loss & (!iin, and Babincc accounts, should be taken at this point. 5 Close the Loss & Gain iiccount to Stock nccount. If there be p.irtncrs close it to their accounts, dividing the net g;iin or loss aceordiiig to agreement. 0. (/liise the Stock account (or partners) to Balance. XoTK. — The sides of Balance account slutuld now be equal without a red ink entry, llcinendter that in the account to be closed, the entry is on the smaller side in red ink, :Mid in thi' accinuit to whicli it is carried the entry is on tiie opposite side in black ink. Tlie lollowing Single Trial Balances have bctn taken from ledgers, ('onvert them into Double Trial Balances, make Analyses of Losses and Gains, and Resources and Liabilities, and get each signed by the teacher. X(j. 1. —TRIAL HAL-WCi;. .Stock Cash Hills Ilcreivablr Hills I'rtvalik-... .M.lsc . . .' Kxpcrisi' If. Hiiif J. C. IJryaiil, — Invciitorj- — Value of unsold Mdso. §4500. Dr. Ch. 51)00 00 ;1921 78 2512 •1(1 :!2:!7 90 510 00 87:. 00 4:110 5.S 7517 5(( ;!81,S (10 150 GO (III 2510 0(, aooo 0(1 1 500 00 18 525 0(1 19712 19712 18 Xo. 2.— TIIIAL HALANCK. Stock 500 12:!42 9704 2500 oo' 50 49 00 7000 6842 842:f 3:!0O 00 Ciisii 60 Mcrt'liaudisc 50 .Shiiil. to Toronto 00 Hills Heci'ivalile 5500 oo! 1500 00 Intcrt'St 5:i 25| 95 75 Siiipt. to Sorcl :iooo 00| 1488 45 .1. 1). Davis 1200 00| 0450 00 Kxiicnsu 240 ;!5100 00, ;!o!l:i5ioo 30 —Inventory — Mdse. on hand, §1150.29, 00 14 38 44 00 81 90 67 II. Hiiie I'artncr. . J. Taskcr Do . . . ..i net train or 1 . . i Do . . . iss Dr. 250 12300 9400 56750 96700 50000 18500 9275 12700 12000 902 2338 4200 9740 10500 8970 17 67 Cii. 9250 10000 10000 52425 63500 17000 8925 95800 8830 135 2400 7400 19900 8750 150 J. 1). Davis.... Do.... , . .{ Do Cash Merclinndisi> . (value of unsold S:!5200) Real F.stati' Y l^n .In r>4oooV Hills Ri'CL'ivahie '.' '1 ('ollego Hunk Hills I'avahU- 84 tlolk'Ki- Hank Stock... . . .(value of unsold, §1000) Interest K.xpense 1 Shipt. to Halifa.v f viiluc of unsold §1 ''00") Railroad Stock J.Thomson . . W. Woods J. 15. Desmartean Commission . . 314645 84 314045 84 w UEVIKVV qUKSTIONS. Kil. 1(12. in:!. 1(14. I d,"). KKJ. 1(17. lOH. l(l!>. 11(1. 111. llli. IK!. 114. I I -.. 11-;. '. IT. lis. II '.I. 120. 121. 122. 1 '.'5. 127. 128. 12t). i:!0. i;!i, i:!2, 13:!. culiiltlll il plisilivc IlKMlf dl What is (i liii.siiii'i.s tiiiiisiK ion? Wliy is it nil f.vcliuiitfc ? Wliiit id rocordcil in iloiililc entry? How many futiios will cucli Irunsiicliou ic'iniii'c? WliiTi" arc tlit'y nnnU' ? Which will lit' tlic greater '.' What is omitted in the Skeleton Ledfrer? After all the ti'ans'uetions are entcreil, wiiut »h ; Kxpense, 4 ; Loss it (Jain, 4 ; Halance, 4. Montreal, Jan. 1, 1S88. InvcsU'd in business cash 8!»000. 2. Bot. of M. Morin for oasii, tiOO brls. Flour at 8<5.()0. ;{. li,,t. of \V. Quinn it Co. lorca.sh, 350 brls. Flour at 8r).r)(»; 1(10 brls. J)o. at 8*5.10. 4. Sold Clrie V. Varin, Brockville, On»., for cash, ;{l)l) brls. Flour at 87 ; 1 l)il. Do. (dama-red) at 84.75. 5. IJot. of 0. E. Daw.son & Co. fiir cish, 200 brls. Flour at 80.10. (i. Sold C. llannuni for cash, 200 brls. Floi r "t 8»).90 ; 350 brls. Do. at 8. Bot. of Geo. Gunn for cash, 80 brls. Yellow Befincd Sugar, 20,800 lbs., at Ggc, 8—. 7. Sold S. Lamont lor cash, 5 hhds. Molas,ses, 650 gals., at 31c., 8— ; 15 brls. " Cru.shed A." Sugar, 4200 lbs., at 7ge., 8—; 50 brls. Yell(.w Refined Sugar, 13,000 lbs., at GJc, 8—. 8. Paid Gas Bill to date, in cash, 811.45 ; Paid B. Uomaine, Book-keeper, cash for services to date, 875.00. inventory. 10 brls. " Crushed A." Sugar 2750 Ib.s., at TJc, 8 30 " Y'cUow Refined Do 7750 " " ()|c, 8 2 hhds. Molasses 200 gals. " 37|c, $ 111 'I A triinsiictiiiii iiniy affect iimro limn two .iL'i'ount.x, l»iii in oviTy eoso iho sum ol'tlio tl( l>it I'litrii's nnihl 1h' ii|U:il to tli> >iim of llic trnlits. A iniiiMietion niu>t, tlu-n lore, |)rinlufu oni- of till' following rr>ult"t : Ist. One iKliitanil one Civdit, (liu.-< : M.lsi', Awt. Dr. 81'-'()0 I iin.l C'u>li Acct. Cr. $1200 2im1. Oni; Debit anr. f I'iiy. " tJ(»0 3itl. 'I'wo Debits iinil one Credit, thus: Ciisli Acct. Dr. 8T0U J. .Jones Acct. Dr. «HOn uiid M.l.-e. Acct. Cr. 815(10 4lli. Two or more Debits, mid two or uioro Tiedits, thus: Cisb Acct. Dr. !!?")IM) and S. Sinitii's Acct. Cr. «2()0 Bills Kec. Acer. Dr. COO '• Hills Pay. " " 500 " Stock '' " 400 IMIfiKS l-'OU OI'KNING A SKT ()!•' HOOKS. Hel'ore the bu-ine>s tninsiietioiis can be entered, th'' book- must siiow tlie |)roprictOi".M nwiureo and liabilities. They are obtained from llie balance account ol' a preceding; Led^'er, or from a >.tateuient luniislied by tlio proprietor, or IVorn any other iivailabbf source. It is customary to commence the leduor with the proprictnr's account. I'lIlST MKTIIOI) (TW'n lUIF.ES). 1st. Debit each resource in an apj)ropriate account i'or iis own amount, and credit Stock account with the total ; then, 2nd. Debit Slock account for the total of ibe liabilities, and credit each liability in its proper account with its own amount. The iliff'erence between the sides of Stock account will show the Net (,'apital or Insidvency. 1st Kxauiplo. — ir. Buie invests the followinf^ resources: Cash, §1500; Mdse., $1000; A. T. (xalt's not'', 81500 ; amount due from L. llogan on account, $500. Dr. Ca.sh acct. $1500 " Mdse. " 1000 " Bills Rcc. acct. 1500 " L. Hogan " 500 j and Cr. Stock. $5100. 2nd Kxample. — H. Buie's liabilities are : His note for $1000, and balance due (J. K. Hart, on acct., $900. Dr. Stock acct. 81900 and Cr. Bills Pay. acct. $1000 " " 0. E. Hart " 900 SECOND METHOD (ONE RUt,E). RuLii. — Debit each resource in its appropriate account, and credit each liability in its own account. ;ind then debit or credit Stock account (as may be required) for the difference. The amount entered in the Stock account is the Net (!apital or Insolvency. Dr. Cash acct., $1500 " Md.sc. " 1900 " Bills Jtcc. " 1500 " L. Hogan acct. 500 andCr. Bills Pay., $1000 0. Iv Hart, 900 Stock. 3500 21 Skt in. Duv OooDH TlnHINKHM. Huyin^ an.l H.|li„., i;,r ,,,,sl., a.nl .,„ ,htsm„:,1 ,„.c,.u..ts. Co,..„u...c.in, wi,|. „ „., '^"l"'»l, I-nHluciM^; a l.,ss j^miter than tl.e cu,.it„l, un.l vUmn^ with a not iuM,|v..n..y Xune. ..f u..count. >u..l nu.nlK.r of lin.s n.,,ui,..l : Stock, 1; C.I, ,„; M,,,,,,„. •»'-. I . A M (am,.l„||, ;,; ('. |,,„„ ,^ (., - j, ^, ,,„..,. i^;;;:;c^.;7!- ^^"'"""^ ^ ^""- ^^ ^'^ ^- •^'''•"- »> '-i-'-.^; w. .id ciJ:: ": ^^^^Montroal. March 1, 1S8S. Invstcl in husino.s. cash ^125.;{5; A[.W. valued at llAc""/"' aV\ '^- ';:"''^" "" ''■'■'- ■' '"'l''^ :J"-"-'' H-tlcl Twill., 225(» ydn., at :5. Mot of'C^ Dunn .V (",.. o„ acct , 5 bk /J.'sHff Wi^an, UTSO yds., at «)•..•., g-- ; • ".'; " ^^; '*""" ^^' ^<'- <"' ^'^'^"- '■> I'l.^- White Cntt...., 71)20 yd,s., at lie. *- 0. I'aidA. n.(;an,pholloa.hnnacL.t.. «il2:,.0(). " Wl "^^ '!-''|. "','"'■ •''"'•''''•^■^^'C".. iVesctt, ()Mt., ,M. ;{ n.onths cnnlit, ', Ms. 4 Stiff - bl>. jy. iMMilard, l;)5(l yds., at ,")}(■, «!—. -'•»-) «■ n"'''-'' !'•'!"■;:'';: "'^''- - '''^- -*^'-'"' '^-"^'i '^'"'"n i^^o yds., at i-q.. «. Jlrccnvnl of I), h. Furnioc & C. casli on acct., «20(» 00 n... r ''"I't*"' ''•'""'■^'"-'^•^•^••^•I'l^- >''"M'r I'-ints, 734G ^ds.. at ]0c.,8-; 4 ca«c.s C-anada TwoimI, 2400 yds., at 70c.. 8—. ' ^ . * 'lt,;'^"'V'' ''^- '"'"""^ ''*' ^'^"" "" "•■^■^- •* '•'■^- ''■•'7 ^'"""". 7172 yds, at 8c. «- • 5 hl.s. White )o., 71)20 vds at ').- S •» -. . r- i -n i , ... , ' ' ., ..7_.i Nos., at Jl., ti— , ^ cs, Canada Tweed, 1224 yd.--., at 70c., S— . 11. J'.iid A. H. C.iiujdioll cash on acct,. .?2.')0.00. J2- ll't.nCC. l)m.o^:Co.onacct.,5b!s. Biu.-i)cniuis, 7000 yds., at 12c., «-. 1.5. 1 aid husiness tax in ca.sh 8:J2.50. i:}. Received of .J. K. Lament & .Son ca.sh in full of acct., $-. 40 ,u^Be..,.d Twtll. 1..00yds.. at Uc, ._ ; and received of hin. ca.sl.-on' L. ^m V 14. Itceived of J) E. Furnice & Co. cash on acct , §100 *— , 1 hi. Jl^, l-oidard, 77jyJs., at5Ae., .S— . • ..c.t ^Inrl '^- ^'- ^""'''''" *^''"^'' *^"' ''"'"'"^^ "'''»'^^»-' «-; ''I«o ^- H- Innis cash ou acei,. 3|iJi.5.l)0. 17.^ 8old .1. K. L,n,ont.V Son on acct., 2 e.s. Canada Tweeds, 117U yds., at 71c., •>— . Iveecived of tliem cash on acct.. $150. 18. I'aid cash for rent 675.00, and clerk hire to date, §254.17. rXVKNTORV. Mdse. 1 hand valued at §250.00 oo Set IV. — IlAUinvAKE Hisinkss Hiiyinir iiiiil selling;; (or casli and on jii'rson;il account-!. CoinnioncinLr with a net insolvency, jiroiliicin^ a los.«, ami clo>iin^ witli an increased in.s()lvency. Names of accounts and luunlicr of lines rc(|uired : Sto''k, 4 ; Cash, S ; Meiehandiso, 8; Real Ksfate. t); T. Quinn, (> ; Hanisay \ Sniiih. (! ; T. U. Varin, 4 : Wni. Younj; & Co., 4; Xavior Zuill, 4 ; (.'olieiio Hank, S; K:qiiiise, f) ; Lo>s ami (Jain, 5; Hilance, H. Montreal, April 1. 1S8S. — Ooininenceil linsimss havini: cash on hand §4lJ;}7.llO — Mds.'. per luvt., $2202.40, House and lot valuid :it 6ir)(K».(l(l, and aui owiiij; to P QuiiMi on airt., 8!^500.(IO. 2. Hot. of IJanisay k Smith on acct.. SHO koi^s Nails at ^Wrt'),^—; ;")(» kens S-pcnny Nails at §t;.r)(l, ^— ; ;{(l()(» Ihs. Galvanized Wire at i:!c., *— . :i. Sold T. U. Varin on acct., 12 .loz. Steel-faced Claw llamniers at §7.00, 8—; 20 doz. lO-inch Screw-drivers at SCdO, S—; .f) doz. (i-in. Drawing Knives at §10.00, § — ; 4. I'aid 1'. Quinn cash on acct.. $50(1.0(1. ."». Sold Wni. Youni: iV Co. on acct., 2500 li)s. Copper Wire at 50c,, ^ - ; 40 doz. C,isi.>t.rl Shovels at §12.00, §— ; 15 doz. t)-in. Wrou;.:ht-iron Holts at 82.25. § — . 5. I{ot. of llanisay \ Smith on acct., bill of j^oods per invoice dat<>d 4th inst., aiiiountinu' to §7;{5.()0. t>- Sold Xavier Zuill on acct., 5 doz. Diinier Knives at §:{..50. §— ; (1 doz. Hnakfist Knives at §:i.OO, § — ; 10 doz. riated Table Spoons at §5.00, §— ; 10 doz. Plated Dinner Forks at §4. .50. §— ; 1 ivory Handle Carving Knife and Fork at §2.25. 7. I'aid P. Quinn cash on acct., §10(I0.00- 7. Jveceived from T. V. Varin ca-h on acct., §1(I0.0(\ 8. Paid IJanisay \- Smith cash in full of bill of 2nd inst. 0. Deposited cash in {'oUe.-e Hank, §700.00. 1(1. Paid book-keeper iu full for one month's salary, per idieck on Collej^e Bank, §100. 11. Gave P. Quinn on acct., our check on College iJank for i5250.OO. 12. Dot. of Ramsay \- Smith on acct., bill of goods per invoice d:ited 11th inst., amounting to §1.'{ 42.40. 12. Paid freight on .same per check on College iVink, §i;U.24. Paid rent §f)0.00 and clerk iiire §1H).00 to date, per checks. Pi. Dopo-sited cash in Bank §100.00. 14. Heceived cash for rent of house and lot, §12.00. Inventory. Mdse. unsold §21)02.07. Real Estate, valued iit cost, § — . Set V. — FuRNiTi'iiE Business. Buying and selling tor cash, on personal accounts, and on promi.sMtry notes. ('ouimencing with a net insolvency, producing a gain, and dosing witii a decreased in.sol- veucy. Names of accounts and nnml)er of lines re((nired : W. ,T. D.-ivi.-;, 5; Cash, 11 ; Merchandise, It ; Peal Estate, 5 ; T. W. Kane, 5 ; .\. .Vhearn, .") ; P. Rasconi. 4; Rills P.iyable, 4; Bills lloccivable, 4 ; E.xpense. 4; Loss and Gain, 4 ; Balance, (!. .Montreal, May 1. ISSS. — W. ,). Davis commenced business with the followin.' resources and liabilities : Resources. — -Cisii oi- iiaiid, §1 1()0.(MI ; .Milse. per invt., §!,'U(I ; IIoii>e and lot valued at §2000. T. W. Kane owes him on acei. §r)00.00. ! ; 4 Ash and Walnut Do. at ;J50.0() f) Ueooivo.l .,f T W w i «i-'5.ou. ,i. soM J. 1). Willi,,... 1 M 'n ;,. , r V : "'" ""''' '" ''"*•• ", .» -■, K. UM r, ,.t *,.(!(), .s_ ; receivod in paymont Lis n..te at ;UI davs for ono M and oasl. Un- ha Ian... 7. H,„. ,1... cash U.O Canoscatod C-hairs at 81.00^ 9 uc tinsda^, ^_. U) .s.ld iorcash 1 Wire Buck Parlor S.t. 8250. 21 Gave P llascou. my not. at lT) days, in |„11 nf -M-ot >[ l{,.....iv..,I ni'T W ,' T ' lor. 1 .; W s r " r ^"""■"' "" '*"' '■"'•> *'' ^^- •^''^'="-" •'■' ••'^•«^- ^'8. Sold 1 thi n. !;nf :"■ ^' 'T'- ''■ '■''' "^'^' '^'"■j'^'- ^-•••^•' -'^^'-'^ «3^-oo INN hNrouv-,Mds.. on hand valu.d at SUii^.r.O. JJ.al Estat. valued at 82200.00. 8kT Vr. — Fl'KMTlIRK BrSl.NKSS. . Uvr::::;:r:«::;:^«t;:r^''-"''-^ "'^ '--*« ;Nam.s ol accounts and numh.r uflim's r..,uir.d • V\' J lhvi< V I h r Zii'.t'"' " "■""" "™^- ^^ '■""■ '^ ^■"- '^ ^-^' -^^ '..»«aZ;.:; Moiitroal, Jun. 1. 188S \V T n....;, i i • i;..k;iv , . *^' ^"^'* '••""'"cnced husiness w th resources and liabilities as shown in th. Balan.e act of >^..f r i n i • \"'". "-""'^«^'* '"»« •?2 -It an ,l-.... (■ . . I . , '"'" ^"' '*^" *-*"^'- ^1^' "w.s on his note, dated April —, at bOda>s, (avorot John Jones, 8170(1. 2 SoldS S I>.„.l-..r,l f . . iiiciiitliu in l{ w- u 1 , ' -^ ' • — ooia .■^. .>. i ackaul on his note at 2 z;^^::'!,"^ ■™^^■lr ;;;,:::;:'' V'w ''•'';*-;; ■" '■- '^'""" "'■'' r, I),,,,,;. , , . ,, „ ■ ""t- 1<" <.i>ii 2.> Wov.n Wire .Mattresses at 84.50 8— .M ? ; 8 ,: *,f '™'',*'''''''"'- "■ •"'*' ""■"^'■" "•■■ ■^s.'fi'B^'"' ■ti $.i.).(i|», ?5- ; Ksdoz. IVrloral.( -s.al Chairs at .^ISOO S ^ l> • i ^ n • .'. f>. Wiliianis- not. of.lth ult. du. this d- 8 'I 7'. , T, '"''' ^'' 111 l> . - 1 .... .. '""■■""" iiilMI,i\,5j — . :l. DijHiKiieJ Oils I III tank SI200 «| , .J laiveil uosowood S.er.t.in.s ■it'^iniuni « • i • ' :::ri::!,s^Ln,;i^::;;t:!-V^^^^ our „of.. t".v.. f r. 1, ••" Houssoau s not., and cash lor balance. 18. Paid m .ot.t.uo l.U:,,.co.u,du. this day, p.r .h.ck on Uolle.,e Jknk. 20. Bot o " rhomsoncV Co. bill of rumiture per iuvoico dated 17th inst., amounting to 82500.47 J m Ill ' 111 * gave in piiynu-nt our note at fiO J.iys for S2200.00, casli I'or halancc. 22. Sold Upton & Valois bill of giiods per tlioir order of lOtli inst., amounting to 82700.00; received in payment our note favor of John .loiies for S — and tlieir note at 30 days for balance. 23. (Sold 11. Danscrcjiu bill of jzoods per tlieir order of 20th inst , amounting to $1875.00, and received in payment their ciicck on Union liank. 24. Deposited in College Bank II. Daniiereau's eheck on Uuion Bank, and cash 812."). 00. 25. Gave A. Ahcaru on acct., our note at 'M) days for 81000.00, and e:ish §75.00. 26. Withdrew from Bank, per cheek, 8200. 28. Puid eash for taxes 822.50, and insurance on house $6.50. 29. Received ciish for rent of house, 824.00. 30. Paid current expenses for month in cash, $150.00. iNVK.NTiMiY.— Mdse. on hand, 83S7.33. I?eal Estate valued at $2500. Set. VII. — Commission Businkss. Shipping troods to be sold on our aecouut and risk. Keeeiving goods to be sold on account and risk of the shipper, interest and discount on promis.sory notes, etc. Names of some of the accounts and the number of lines required: — Stock, 12; Mercliandise, 20; Cash, Ip.ige; Bills Jtes., Bills Pay., and College Bank, i page each. Open other accounts as reipiired, allowing .V page to each, (iive Loss & Gain and Balance ^ page each. Montreal. July 1, 1S88. Borrowed of my father 84500 cash to commence business. 2. Pa. i". cash for printing circulars, etc., 814.75; 2. Deposited ca.sh in College Bank, $3000. 3. Bot. of D. Trembliiy bill oi' goods, amounting per invoice to 82500 ; gave him my note at 15 dnys for 81500, p;iy:dile with interest at 8 per cent., and cash for balance. 4. Shipped B. S. Sun.mer.s, Toronto, to be sold on our account and risk, 6 hhds- Cubit Sugar, as follows : A^ 1 1160-104. V^ 1440-120. ^ 2 12S0-in. ^ 5 1200-115. :5 11115-110. 6 i:;50-112:::::.7U25-678=^(;[)47, at7c. 5. Received from Caza i\: Co., Cornwall, Out., to be sold on his account and risk, 4 cases Canadian Tweeds, as follows : — It! 25 pieces (.0(1. 17 26 " 624. 18 25 '• 600. 19 24 '• 576=2400, at 50c. Paid cash for freight and drayagc on same $3. 0, Sold W. Linton for cash 2 es. Canadian Tweeds, 51 pes. 1224 yards, at 75c., from Caza & Co.'s Const. 8. Received from H. S. Summers an Account Sales of tiie goods shipped him on 4th in.st. Our net proceeds are 8661.33, which he h.is placed to our credit. 9. Sold W. Woods ii-om Caza & Co.'s Con-t. 2 cs. Canadian Tweeds, 49 pes. 1176 yards, at 80c. L'eei ived in payment cash $140-80, and his note at 15 days, with interest at 8 per cent., i'or balance. 10. Received of B. S. Summers in full of account his note at 90 days. X 12. Closed Caza & Co.'s Const., and sent tlicni an Account Sales. Our cl.ar'^c* (not previously ontmMl) an-: Stora,,. ,.tc.. .?4 ; Connnission on sal.'s at 2^ nor ..ut g- I li.'ir not prom'ds arc S-* wliiol, w place to tli.'ir credit. " ' ' " 14. Sold J). Sweeney for casli l.ill ofuoodH aniountin;; per invoice to ,^1000 21 Paid cash for n.y note favor of D. Treu.blay, and i.iterest on sau.e, due" this day. lace of note, $-. Interest - days, at 8 per cent, 8-. 24. (^ive Caza & Co. i.. full of account, ujy note at 00 days. 27. Received of W. Wood.s cash in full for his note and i.itorest. Face ..f note SJ- Interest, — days, at 8per cent. ."• ' 28. B. S. Sununcr.s i)ay.s his note of Iflth inst. before maturity. Face of note $— JAscount oft,-days, at 8 per cent, S-. Received c.i.h for halanJe. 29. Drew, per check, from Coll.-e Bank, cash, 8500. 30 Paid my note favor of Caza & Co. before maturity. Face note, 8-. Discount ofl, — day.s, at 8 per cent., S_. I'aid b.dance in cnsh. 31. Gave book-keeper check o„ College Bank for §75, in full for one uionth's services to date. Inventory.— Merchandise unsold, valued at .?1450. Set. Vlir.— Commission Mv>.oi now account,s J of a page eael^ ^ ^'''"''^''' " '"-^"'-J '" ^'- last Set. Give all Montreal, Sept. 1, 1888 Gave W ,^r • business, cash .^2000, and no"te at'oo day's wri,''te.v!t' T?"'"' '' ""'' '"'''''' '» ^''e 2. Received from O. E BawsonTo' u' 1 ^ P'' '''^"^- ^"''^''lance, $-1 Bonele,s,s Codfish, 1500 lbs.; 50 brls. Cod Liver Oironno ''^V"'^ '''''' ^«« »^-- m cash, $28.75. (Dawson's 2nd Const) ' ^^" S'^^' P'^'^' f-'^ight on same w |! 28 2. Sold J. Brossard on his note at HO days, .'{0 brls. Cod Liver Oil, 1200 j-als., at 82 ; 200 boxes B. Codtish, 1000 llw , at Sc. (Dawson's 2nd Const.) ii. Hot J. J}iossard's note discounted at Collci^e Hank. Faec of note, 8 — ; Oiscount off, 02 days, at 7 per ecnt. Net iiroeceds plaeed to our Cr. in U;ink, 8 — . 4. Sold for easli, Jhitter and Ijard, 84:5. 50. 5. Sold J. Smith on his aeeeptancc at 90 days from this date, luO boxes B. Codfish, 500 lbs., at (5e. ; 20 brls. Cod Liver Oil, 800 jrals., at 82.10. (Dawson'.s 2nd Const.) 5. Got J. Smith's acceptance iliseounted at Cfilleuv Hank at 7 per cent. J'roceeds to Cr. in Hank. 6. Received from Lcclairo & Co., Sorcl, to be sold on tlieir account and risk, 1500 bu.'^hels I'tas ; 30 bales Pressed Iliiy, 7800 lbs. I'aid frei<,dit on same in cash .■ * '^"•■^ ^■'■«- 3"» "«■ 1'. Butter .,t .Oc; 760 b„,.„„ •re: stooge :ifc:;:;:;^;,sr;,::,r^';.''v'"°""' '""'■ ,°" ""---^ ceol.,8_. Hi»„ot,,rocc:,l.;,„c;.,r ' •"■■"'■ '">""""'™" °" '"I"' »' -'J per ^t a"''' ■'; JV^'i'"',' "" ■■"""""'■'"" »f S»»'l» amounting per I„v. to .*275 .» MoV """ "• ''• """•"'"' '"" °" "' »' l" ''i- H.I.., favor of 0. A. Neber, •>7 SoM W „"'"''y' '•'-'"I'*- I «Ki fioight on ,amo ill cash, 825. -^. pti cent., !?—. ihcir net proceeds to credit, ,■;«-_. C,.,wl "' '' '•'°' ''="" '■'"'■' "" "» "' "■" 2»'l' ■»"-■ P-- «l.»t lavor of T. A. .oj;;^:^;;^:"-':-;'^---;-:::-;^- at 2A nor cent on siI.k * ii- . , iHMiiaiice, .>l.bO Commisxioii It -2 ptr ocnt, oil Niie.s, ,'^— . 11,^ net proceeds to credit, S— . INV^ENTOKIES. 3Ierchandiwe, ?^S41 67 Fiiniifino «'inn • t. , . .,, . '" ^'•"'' iiniiituic, >>J(M»; Insunmee 1 month unexpired •i^l^^^ «.U..oc,it ■o_(i„ebeo, No. 3, valued a. cost. S.,i„u t„ Geo. Win. J, jljo' ■'-HEES^i;^^"^^^ of the uasoia must not bo uiitcrcd on the n-otlit. 30 REVIEW QUESTIONS. 102. What kind o*' trausactions aw I'lilered in Set [? 163. Wliat is the condition of tlie proprietor at bfginning? ItJ-l, What effi-ct has a net t,'ain on the capitiil ? 105. When tlic net gain i3 not drawn out, wliat does it become ? lot). What kind of transactions are entered in Set II ? 107. When a loss occurs in business how does it affect the capital ? 108. What is the smallest number of aeeouuts into which a transaction may be entered ? lOlJ. May II transaction affect more than two accounts ? nn. What must lie the condition of the sum of the debits and credits? 171. How many forms of entries may transactions re(iuire ? 172. What arc they? 173. What must books show before entering llie business transactions ? 174. What do you understand by opening books? 175. How are the facts necessary for openiufj; obtained ? 170. (Jive tlie rule for entering the proprietor's resources ? 177. Give rule for entering his liabilities? 178. What is shown by the difference between the sides of Stock account ? 170. Give the second method of opening books ? 18(1. Hew is the net capital or insolvency shown by this method ? 181. What do yon understand by net capital ? 182. What by net insolvency ? 1H;{. \Vhat kind of transactions occur in Set III ? 184. What is a personal account? 185. When the business results in a loss greater than the capital what is the proprietor's condition ? 180. On which side of Balance account is the insolvency entered ? 187. How is insolvency at beginning affected by a loss at closing? 188. How by a gain ? 189. What are promissory notes ? 190. Into what two accounts are they entered ? 191. On what side is the first entry made in the Bills Payat)le ? 192. On which i.s the Bills Receivable? 19;j. Which side of these accounts can never be the larger ? 194. Why? 195. What accounts were debited and credited in opening the ledger of Set V ? 190. When the insolvency at opening is greater than the gain at closing what is the proprietor's condition ? 197. How would the amount be found? 198. When the insolvency at opening is less than the net gain at closing, what is the proprietor's condition ? 199. How is the amount ascertained ? 200. What is a Commission Merchant ? 201. What d(/es a Commission Merchant call his own goods ? 2(12. What does he call other people's goods which he has received for sale ? 203. Why is it necessary to make this distinction ? 204. When we send goods to a Commission Merchant what do we call them ? 205. Why is it necessary to give them a new name ? 200. What does the Dr. of Const, show ? » 207. What the Cr. ? 208, How are the net proceeds ascertained? liOlt. 210. 211. 212. 2i:i. 2)4. 2 1 ,-.. 2 III. 217. 2 IK. 2111. 220. 222 221!. 224. 8J What do yoii mean l,y the iiK proceeds of a Const. ? ' W'liat is shown by the Dr. ol'a .Shipt. account ? What l)y the Cr. ? What by the dilTerence ? llo\v is Set Vill coninieuccd ? Explain how amounts are hronjjht down in the h^lger ? What amounts are not l.rouglit down, mid wliy ? " Wliatisa draft ? What is meant by .accepting a dralt ? How is a draft accejited ? Kxpiain^t^e^^diJI^rence between O. H. Dawson's account and 0. E. Dawson's Const, account Wh;nt;l!!:;r " ^'""" ''•'■''"" '' ^"-'^ '^'""'•'"' ^"'^ «'"'"-^'' '" ""-'"u * Co. ? It the proceed., of each be not desired, how may the entries be made ? w hy are inventories entered' in accounts ? Why are the unsol,; goods belonging to Consts. not entered as inventories ? CFIAI'TKU IV. I'KACTICAL MOoK-KKKriX*;. T>rsl.\K>S KlidlMi, l'"nUMS. I )llti;iTli).NS AM- Sl\i(iKSTIONS. After (•(iiii|plitiiiL; till' Skik'toii Lrd-ri' it i- iirisuincil lliat llK'.-tinlciit 1ms :i kiiowlodj;!' (iltlic iiurjioses jiinl aiin^ of I iink-k(r]iiiij;. ;iiiil nC the I'licts doirt'd to he shown, as well as tlir iiirtliiMl (if slinwin.; tlii'iii. Ill' will MOW prncccd tu inaki" liiniscif familiar with the I'orins ol' VMrioii- lindk-, doniinriil-. \c'.. in sj,riiirai use. niiil with the iiii'thods of sliowinj^ di'tails as Will as lii'iiiTal ii'^iill-. With tlicsr o'.'.jccts in view tlio stiidiMit will hi'glii at tho First .Set (]ia!.'i! Ill) and wmk it and the fullowiiiu' Sfts in iifo]K'r biisiness-liko form a.s htMvafU'r diroct.'d. I'lacli Sit and dncnini'iit (•onnccii'd therewith must be exauiim;d and passed by the teaclier hefure einnuii neiim the lU'Xt Set. Dllll't IONS l'"()IJ WOK'KINC. SHT 1. Use the l)a_v Muok, .lo'irnal and lii'dj;er. m ike Trial IJalanee, Analyses and Invoices. Comuieiiee this Set \>y writing; the transactions in the Day Book. In the simple furm< of )iiMik-ker|.ii|M the Pay ISook i-^ tiie 1 k of original entry, and is tlic most impor- tant in ease dfa law.-iiit. .is the entries in it are Mipposed to be niade when the transac- tions are fresh in tiie mind. The entries should bo made full and complete, leaving nothiiiL' to memory. Tluy shmild lie entered in plain and eoncise lani;uage, in the order of their neeiirrenee and a> si.iai as liny oeeiir, never befori'. St (KiKSTio.NS OX FuiiM (It'' 1).\Y I'xMiK E.NTRiKS. — Write the heading' on the blue line abiivi.' the doiilile eross lines. It should bo in the centre so as to have the unoccu- pied space at both sides eijual. When an e itry eonsist,- of only one line be^in it at the maruinal line (see 1st entry in the model oi'ihiy Hook on the ne.xt ]tai;e). When an entry consij-ts partly of explanations and partly of goods, the explanatory portion is comirienced at the marginal line when it occupies only one line. The goods are plaeeil on the line below and a little to tlie ri'jht of the marginal line (sec 2nd entry), Articles of goods ditfering in kind, ipiality, price, \c., must be jtlaccd on separate lines (see ord entry). When the explanatory ]iart of ,ui entry oeenples more than one line, the first line is placed a little to the light ol' the imirginal line, and eaeh of the other lines at the margin- al line ; the goods are always placed to tho right of it (see -Ith entry). When there is only one article of goods the price per 'init is placed in the money col- uuni only (.«oe 4th entry). When there is not sufficient sjiaco on the line to finish the description of the goods it should be continued on tho line below, beginning farther to the right than the preceding line (see 7th entry ). The cro.ss ruling, with the date in the centre of it, is to separate the tran.sactions. When more thnn one entry oecurs on tho same day the date is expressed by two dots. The date is always written in full at the top of each page. The addition of the money colunm gives the work a more finished appearance. It is, however, often omitted. A Day Book entry should tell what was doiu! by us. not by others. For instance, the Day Book entry lor the 2nd should not read Af. Moran mid us for cash, etc. 88 It (Sot I.) Miir^rin f(ii clucks. ^/ MODKL OF DAV JJQuK. Montreal, .Jim. 1, 1S8M. TltANS ACTIONS. Iiivt'stod ill liiisiiK.s.-, (-i.|| Hot. of M. Mwraii (lir cu.^h, (100 l.rls. |'|..iir, at .*{; rTF'MS. TOTALS. !)000 I ;u;no •'■'0 hrls. I' I,, IIP, loo " !»,, ^ fit $:i„-,o " t;.i() I 111'.-. lilO 2:,;;,-, (ov CUkI ■Soi.l L'iric V. Vann, lJn,ckvillc, OmI., :;!»D hvU. Fl,,iir, 1 •• Do (diiiiia-t'J), ill $7.00 27D;! \J Bot. oH). K. Dnvv.^on .V C\). lor ca-ii Sold C. Iliuiiiiun for ca-h, 200 brls. Flour, .'iyO " I),, at $(;.!)() " (i.2,-> •1 75 2 797 1220 i;i-i) 21.S7 I JO r!,JC7 \l \ J!ot of II. CiuiMToii A- Co., iJiirliiiLTtun, ()„t , IJO lirLs, Doiiiiiii.ii, Aiills IvMra 1200 hush. SpniiM; Wheat, .< o.yr, \/ iiio -jO Paiil rent iind clerk iiirc, to date in casji 2002 2!)5 25017 I 75 oO uO .rornxAT.. ^''^^ book is tnade notu the Day 15ook. IV^Iu at tho first ontrv it. the Day Book and decclo wl.teh lodger aooo„„ts sl.ould 1.. debited and wl.iel. credited, au.l then enter the decston >n a bonk kept tV,r tho purpose, ealled the Jo.-hxal. Enterin. i,. the Jour- nal ts ealled /...,/^.<„,, The Journal is not a neeessary book as tho postin, n.aX done d.reet Iron, the Day Book, but if an error should oeeur it can bo n.ore easily detected when a Journal is used. ^ utu.ciea nkoo,th''r^ "--kCv/) indicating that tho Day Jiook has been journalised, should be placed before each Day Hook entry as soon as it has b .en journali.od. (See Day Book ^ In journahz.n^- it is cnsto.nary to enter the debit first, a.,d then the credit on the l.ne below. The .sum of the debits and credits must be equal \n each entry The money column.s .should be added at the bottou. of each page and at the end of 34 cacli Set, and iiui.-^t ]h' t'ljual. Wlioii the Her ix'ciiiiii'.H inori' tliiiri nwv piif,'c llu' Words '• Aiimuiits lirmi^lit I'lirwunl" sIkuIiI Ik- written at tlic iHittiuii of tlu' first lui'^c on tlu' Hauio lino iiH till! mlditidiis. Tlio siuiic words and iinioiints .nlKdild bu writUrn at tin; to|i of tilt! lollowiiif? j)au;o on tln^ first line In-low tlir lieadini;. MODKIi OK JOirUNAh. i (Set 1.) Montreal, Jan. I, 1888. Lfdjri'r (N'aiiicH of i,r(l;;i'r iiccoiints (Naini's of Lciijicr accounts Amis, d, |„. Ainli'. to lic Folio. to l)u (li'bitfd). I (o 111' (;n'(iit('(l), di'liili'd. crtMlitfd. at; •M 36 36 Cllsll, Mdsf., M.lsc, Ca.sh, .10 36 .3G 30 36 36 Mdse., Cash, Mdne., Expense, To Stock, To Cusli, To Casli, To JMse., Tu Cash, To Mdse., To Casii To Ca^ili INVENTORY. Value of unsold goods, ?.^'I92..50 9000 H600 23X1 27'J7 1220 3567 20j2 295 0000 3600 2535 2797 1220 3567 2002 75 50 50 2!),-) I 250I7i 75 II 25017; 73 I \ n 75 uO r,o hKDCKK. ' Alt, r tlH> joumHli/,in,n is ,.o,„,,1..,,m1 tl.m .-ou.'s (l,o ,.osfin,., wl,i..h is ,lon.. (H.r .1... rros,.nO ent.ro y Inn,, tl.,- ..„un.,l. I,. |.,.Hi„..ss M. Journuli.i,., uu.l ,.ostin. arc ,lo„o us M....1 aft.T .1,,. Day linok nitry is nrnl. as l,„si,u>s will jHTinit. Tl.o ,.a,^n. oi'tl.. ,Iour„al .,„ wlu,.], tl.o ..„try is m-onl,-,! is written in tl.. L.mI.t in the spaeo n.ark,.! J. Iv f.!,,.,,..:,! F„li„). an,l ,!,.. pa,o of, I.. U.!,.,. ,.,. wln-h ,1,.. a^.-onnt .sn,K.„ed,s wntM, n. tl. J,.,,,,..! u, .1.,. s,. u.n-M ■ L..l,er Folio" (....Journal). Ilu.s.. ,,a,.. marks sl,o„l,! |,, written as soon as tho entry 1ms I.oon postcl. an,l will l.c fuun, very convvniont ,n rof-rri,.. In-n. on. hook to ano.l.or. Tn tin- Joun.al .I.-.y indi- eato that tl>o entry has h,..,. ,,„.,,,i, \V|„.„ an In^Irx Honk is uscl all .1,. I, V nrtv ho wr.tton .n tho Jonn.al l.tor,. tho postin,, is ..onunono...!, an.l the chock nmrk i^') nJd to inilioato that tlio entry has hron jiostoil. "^ Tho tirst oiitry in tho jirooclin- .f(,nrnal is posted as n,lK)w • On tho Dr. or tlio Cash aooount in tho Ud^.v writo tho chUo, that is. tho yoar. tnonth an.l day. In the oxplanatio.. o .lu.un write the nan.e of the account which is to be credUcf uauioly •• To Stook." Then the . I. F. and amount, thus: ^ CASH. Q^ Date. l.SHH. Jan. xiiliuiatidii. To .Stuck, J.K. ; Amount. 34 1)000 Then put tho number of L. F. on wiiieh tho (!asli account stands into the Journal. Iho .Journal entry IS now half posted. On tho Cr of Htook account writo the date, and in tho explanation column the name 01 tho account that wa.s dclnte,!, namely '• |]y Cash/' then tho .1. F. and amount, thus: STOCK. Then put tho J.. F. on which the Stock account .stands into tho Journal. Tho post- iiig of the .lournal ,.ntry is now complete, and tho sides of tho Lodyer should bo ooual- bomotmie.s tho aeeonnts in tlio Lod-er are nundjore.l instead of the p:i-es. The student will be assisfd in posting by remenibcrin.^ that in dobitin- an account the name ot the acconn, that is to be credited is used as explanation, ar.d i,reroditin.^ an account tho name of t'le account that was debited is to be used. Tho word " To " is used on the debit side and" Hy ' on the credit. FOKM OF LEIXJKll. Sliowing tliu po.'^tinK, dosing ami ruling for .Set I. Tiic ruling must bu iu red ink. I)K. STOCK. Cbv ■i-.w. 1888 Jan. To Casii, " Do " Do " Do 1888 .Ian . To Cash, 1888 Jan. To Expense, '.tiiO.'i 1888 .,■ Jan. 'JdO.j 2') . 1 Uy Cash, y '• Less ifc Gain, C.\SH. MEIICIIANDISE. i 1888 34,! ■'^fiOO 00 Jan. 4 "1 2j:i.j 00 6 "!| 1220 00 II 2002 i t 10257 50 75 EXPEN.SE. .S4 295 00 .'ihi' 7 Ul.i ( :il|i| U:i!! LOSS & GAIN. 29;^ 900 1 1 1888 00 Jan. 25 7 By Mdsc, I BALANCE. By Stuck, ;it 9000 005 I 1)605 00 25 25 hi8« ' 1888 i Jan. 1 To Stocic, S4 9000 00 Jan. 9 Hv Md.se, 34, 3G00 00 4 " Milso., II 2797 75 :\ " Do «• 25:!5i 00 G " Do " ! 50 7 " Do '•• JMse., " Expense, illl..lliO , II ' II II 1220' 00 2002 50 295 00 15;!G5 25 153C5 25 34 I ( 2797 3567 75 60 :>■:'■}: .:')|/ 10257 75 'V.'.i 900 900 25 25 ? I 37 00 25 25 »nd writing, the words '• AnnZ ( l • on .V'^^'=^'*V'^' '•"'"'- ""^1 f-'^i"^^ it up, A new account nn.st th... 1 , , ] l tl ' v "" "'^r'^'"'^ ^i"^' '-^^ 'Ih' Vootin^ of th.. sides of tiK. old ...:„;;r ;::',' , ^^•- ;;7^'!;:'-t ,rw.vd •■ and tiu. ibo,i„;. entoivd in tlu; old one and tli-.r offi, ■ > ' ' ' ''"-' "''"' ''t'count sh.ndd be on one side only i^ea d , • * ^ hv V'T"''' '^^ " -T ^^" '^^^"""' ^'"^^ ''^'^ '""-'t words " An,ount fo,■^^' 1, 'n |i ■ '^^7^'" T' T "'I'"' ^r'' •-' "'k- »-'^ t'- transferred to the o„„o.iu. ^1 n " ^"^ '/"'^■•^- J'l'i- an.ount is then acconnt shonld neve b. a |ou 1 '"•' "''""'" '" '^'='^"'^ '"'^- '^'''^' ^-'tinu' of a account. ''' '""''^'' *" •-•""'^' "'^" ^■'^■"^'^•t ^vith the headin^- of the folknvino- book \s: il;;:^::::;; s:;;:',;;;'!:;' ,;;:': ;i;-- '-• r -"^^ ^ ^''^ "-^ 'i'--t- -^ •'- the ren>ainder for three or f uV « u nt Tl ^ '' f."'.';^^";""^^ ^" "'" P^'o^, and headinu' of the Balance aecom.t , ' C ^^'"".'^Tl "'■^*^'^"1«' ^^^' t'^'t shown in the accounts on a pa,e this r^'^'i;^:: '^u^^^S^^:;!:'''' '" ''"''' '''-' '^''^ «^^ -' - FOllMS OF IXVOICKy S-oods, with prices, n.arks t It d ^. . H "' "' "•"^' T'^"'' '^ *"" '1-^'nption of the man. and n.o.le of ship, ,,'„' It sn ,''''' '^' "'"''""■^ ^\-t.nn., initials of the sales- Tho invoice is fun id L tl e V"n ' ."" '" ^"''''f ^"'■"' ''"^^'^'^ ■' " ^^i" J^''^^''-" JH.rchase to see that c" c m,^^^ ' u ," ''"•^'■''•- "'"' ^^'"^'''"^ ^''^' I'^tter to check his the purposes of a .'t^lu ill' ;r,^;Lnt ^^ '"" "'"^'"'' "' ^" ^"^ -' '' ~- '^'1 T-Xote. — TTki> vni.i. ,,.■ -1 ... ,^.>ott.— Use .your oun name in place of the word " Student.") -Foiui No. I, FROM ,Set I. IVl^. (f. J/^a>i)ie/,ji M OXTREAL. 7<"'- <^ 1 888. lUWil^ of A STUDENT. 'Cffi, 6'25 2187 Ow' 50 FOIl.M OF RFCKIl'T. 3567 50 38 -FiiRM No. 2. I'uoM Skt I.- Montreal, f^^. A 1888. )h(m^ <>f A. STUDENT. Tcrnis : ''Crr.i/i. lyhccti 'fdn n>/»ie/> f, / / I 2793 4 2797 75 75 ACCOUNTS CUEEENT. An account current is a st:itemcnt in dftiiil (if the business transactions between two iionscs. sliowini;' tlie balance tine iit the current date. Tiie date on wliicli the account is rendered is phiced at the top, and that on which the transaction occurred at the side, as shown in Form 3. yET II. Work this set similar to Set 1. Make invoices lor all goods sold. SET III. Work this set the same as Set 1. l"^nter the cash transactions in the Cash T3ook as follows : Write the headings on opposite pages as shown below. Pinter the receipts on the left hand page and the disbursements c.n the right. In the first ruled space write the yjur and month and in the second space the day of tlie month. The use of the third space will be explained in Set V. In the fourth space enter the name of the ledger account to which the transaction was posted. It may be ascertained by referring to the Journal. Dr. CASH. 1888 Mar 1 To Stock, Invostfd ill Imsitu'ss, 12,') ;i5 4 " Mclsf., Sold 2 Uiilc's li. Twills, 1500 yds., (A 10c., 1.50 8 " Do Sold J. 1). Davis, 2 l.alL's -JO-in 15. Twills, HfjO v.js., ((/: i;!:ic. 19t) ;58 (( " D. E. Furiiice k Co., On a/e. 200 i:{ " J. K. Laniuiit A; Son, In full of a/e. 2143 ;{(i 11 '' M. N. O'Ut'll, " D. E. Fiirnice k Co. On a/c. Do ■MA) 100 17 " .1. K. Laiiiont iV; Son. Do 160 .3418 09 f 75 2') ■iij rA) 9!) ;{H 00 43 ;i(; ;J0 00 50 18 09 39 -Form No. 3, from Skt iii. M-'^^'^. M ^ M^,u^e / ^, Montreal, c^f^^ .;■/, iSS8 ^0 A. STUDENT. |)r. i/a cf /a/.i /\ /7/j^' Jfycu/, ;i7'j0 yils. fcO TU- / J6 t',i. ,J/j. '^we'//4 750 " " lO^c -^ ]N . '^ei/ah/ 1550 " '•• 5.jc c? K/^^fu/^t 'B^it'jiia' 7540" "lOjc. ^ " \N. Ma/au/ 775 " " --^ o.'c i( Off ^.. t-yj(t/ance, In the efth space put the cxplanatioa. It is taken from the Day Book I he amounts are entered in the sixth space. The difference bnuvon the sides must agree with the cash in the drawer and must be entej-ed on the cred.t in red ink. The sides are then footed and ruled. iiule I side should be filled up with the guard line. v ^ mu re In business the cash transactions are entered in the 0. B. as soon as they oeeur, and e book bahanccd every n.ght, so that errors may be corrected while the t.ansactio„V f tlic day are tresh m the memory. CASH. Cr. ISSs Mar 11 i.'i in Bv A. H. Cainphell, Do Ex I II' use, A. J}. ('itin|)l)( G. n.i I On a/c, j Do iinis ExjM Hal.i llSllic: iHal. of i/e. II a/c, Hciit ^75, clerk I <»ii liaii-i. » lire to date, if^SI.U. 125 !l 250 32 341 243 329 3418 50 GO 17 09 40 Wlicii goods delivcnd aro awompaiiiKl by an invoice, an acwi'Mit current is j^cner- ally considered unnocesi^ary. A statement slioninii the total ol'each debit and credit and the balance duo is deemed sutlieient as tiie purchaser is presumed to have carefully pre- served the invoices. FdKM No. 4 KRoji Skt IIT. .STATEMENT OF A(JCOlJN'r. MONTRI-'.AI, C%'/ -^A 1888. yi..s.i.. '^ %'■ Mw.-r. rfq^c. %(^ A. STUDENT, Dr. 1888 1888 To Mcise as per liill reiidercii. set- Soy. ^'(ij// on a/c ao 200 100 4U 81(i 38 1257 47 957 47 The following form of heading is frequently used instead of the above Montreal, c^^^. j/, 1888. i» %ttl ffiiin'mi mX\\ a. student. .SET IV. This Set is to be worked the same as Set III. Use Day Book, Journal Led"er and Cash Book. Render accounts current to all parties indebted to us. SET V. Use Day Book, Journal, Cash Book, and Ledger. The ('. IJ. is to be used as a prin- cipal book, that is, the transactions entered in it arc to be posted therefrom direct to the ledger. Commence this Set by writing up the Day Hook, thou enter the cash transactions in the C. B., in the same ibrm as in Set i IT. and then journalize the transactions which have not been entered in the C. B. The word cash must not appear in the Journal. Post from the Journal as usual, and then from the C. B. as follows : — Debit tho Cash Account in the Ledger for the footing of the debit side of the C. B., and credit each account which produtedthe cashasnieulioned in the 4th space in the C. B. 41 dcbi, I'l'^f ir.r?;' '• ,1;: sT"-" '^ "■ '■,■ 7."""" ■" "'° '" "i-- ■■■ "■« «• «■ ".c the. „i„„ ,r.,lfe "' °"" "'"' '" "" '"l!'" »l'i'l' "l"»l» i.. a,a.,uut rri.„ . 1 . .„ ^ ^ ''^ •'* '^ '""^^'"^-'il ill' Auxilliary book I'KO^riSSOUY NOTES. .i»4^:ts^t r::;;;;;;.;:;;t;:;rvv""'r '"-' "'■-"'^ -' " »-'" Any prson wl.o rightfully possesses a note is cniled the Holder fro„/(or ft. ,. r tTT' " •■' "T^' ""'^' ''''''' ^^ ^ -^••'-" "-"ber of day. March 2 4 3 d v - f ^^^'^^'V '"'^ " »'^^-' dated Jan 31, at 30 days, will .nature on m, ^ ^^'"''''' ^' ""'' '-^ .^■^'"^^™lly written " Mar '> 5 " The three addition.! days allowed on notes are called •' dayl of grace " The nof. shou d be presented for payn.ent on the afternoon of the h.t day'of "r! but if tt day falls upo.: a Sunday or legal holiday it ,s payable on the fcLln^^y^l^tl day .s also a legal holiday it is payable on the next day ^ ' ' To find the date of n.aturity of a note payable at one or more month, from Torafter^ Ti e no W.11 beeon.e due on the san.e day ol" the month as the day on which ft wa^ M v. W? "'? ''""' •'"'• '■'■ '^' °"^^ ""^"^'' -" '-^»- on Fob 28 . 3 at - to 'day J^'u'^ ^r' '"' '" ''" '"""'' '" ^^'"^"' '"° -^^ -'^-- --sp-di„~ '>9 30 0^3 r ;V T"'' "" '""^ ^"^* '''^ ^^*''« "^'-^''; t'^«« - "ote dated Jan -9, 30 or 31 at one luonth will mature on Feb. 28 + 3 days = March 3. m 111 f 1^ .! A note sliould bo prescntcil for payiinMit at the place mentioned in it, but when no place is montionetl it should bo nivsciitod at the uftico of tho^M.ikir, or at ids rosidoiiee or last known n'>id(^n(H'. or to him jicisonally. When no nuution is made of intcri'St in the note it does not draw interest until mat- urity. After that date it draws interest at the le^al rate (six per cent). Wlicn made " with interest,' it draws interest at the rate and for the time specified therein. Wlien no rate is mentioned it bears interest at the lej^al rate. When a note payable " without interest" is paid or disposed of before maturity, a discount for the utiexpired time is j^enerally allowed off the face of the note. When payable "with interest" the interest for the full time at the specified rate is added to the fice of the note and the discount is tlion oalcid ited on this amount for the unexpired time. No particular form of words is neeessary in the construction of a note or its endorse- ment, but custom has established certain forms which are in use among business men. FORM NO. 1. Note payable to order, without interest, Montreal, Afay 2, 1888. l56250/,„3. Ten days after date. 1 promise to pay to the order of II. B. Bryant, five hundred and sixty-two ^/mn dollars, value reeiived. W. J. DAVIS. liILL BOOK. All notes i^iven or received by us sliouM be entered in the Bill Book, which should contain all particulars concerning them. The liills Kiceivable and Payable are j;enerally entered ii. the same book, the Bills Kee. commeneinir at one cover and tlie Bills Pay. at the other. The above note is a Bill Payable to the Maker (W. J. Davis), and should bo entered on the Bills I'ay. side of his Bill Book. This book is divided into 12 colunms, as shown by the headings in the following model. The first eleven are for use when the note is given, but the last coluum cannot be used until the note has been paid or otherwise redeemed. The following are models of Dill Books, with forms of entries : DILLS No. WllOll Issued. Kti(lor.~or. Mukrr. liiWhoso Favor For what Given Where Payahle. 1 1888 May. • ) W. J. Davis. II. B. Hiyaiit. Mdse. My ofliee. BILLS m Wliei) lleeM.i Emlor-or. Maker. ilnWiioseFavdf For what IWd' WlierePavable i 1S8S May. Il.l). Slralloii \V..I. Davis Mdsc. His Odice. ft 43 As this note is payable to tin: order of II. B. Hvymt, it should not be paid until he has -iveu iiis order, whieii he ,lo.,s by writ!,,- his name acro.s the l)aek of tl,o note When the note is paid it should be ua.ierlled by writin- tlie word '• I'aid " across its lacci and Ih.'u the entry for the payment is made in the I2th column ..f the Bill Book. FOPvM NO. 2. MoNTRE.VL, -May 4, 1888. Ten days from date, I [.romise to p:iy W. J. Davis, or order, four hundred and seventy-five dollars, value reeeiveti. 11. J). 8T]JATT0N. This note is a Bill Beeeivable to the Payee (W. .1. Davis), and should be entered on the Bills Rec. side of his Bill Book, as shown in the model below. ^ Wlien the above note is presented for payment it should have Davis' order written on its back. When it is paid it should be cancelled, and the entry then made in the 12th column in his Bill Book. Tiie total amount of the notes that have no entries in the 12th column is the amount of notes on hand, and must exactly a'^ree with the bulancc of the Bills Bee. Led-er Acc-unt. The correctness of the work may be further verified by e.xam- ining the notes in our possession. The balance of the Bill^ I'ay. Le.]-,.,- Account must, in like manner, correspond with the unredeemed notes, as shwwn by the Bills I'ay. Book, but this amount catniot be veri- fied by examining the uotes as they are in jMisscssion of other parties. J)nte of Note. 18S8 May. I 2 Time. ! Yeiir. Jan 10 (Is. lhS8 Feb I'AY ABLE. \Vlivii Duo. Jl'r Ai)r May. !.Iiiii|.lulyi A'y Vlf IT) ' IIKCKIVABLE. When anil How KcileeiiiiHl. Diitd of Nolo. ,J'"""- WllCM ])11 1HS8 May to .1.S, Vcnr. .IiuiiFelj M'r Apr M;iv •MH I I ||.l/i7 Jim .Inly A't; St'i tsss Miiy IT'Kcod ('a«li. Kf The word "bearer'' or'^ordor'" in ii note indicates that it can be transferred to anotlier person, witli full power to enforce eoliection by leirid proecss taken in liis own name, and is liicrefore called a nnjothble note. Wiien payable to a person named (that is to the person only) it cannot be so transferred, and is therefore called a non-negntiahh note. When payable to a person or bearer, or simply to bearer, it is payable to any person who presents it, and may be transferred any number of times by simply delivering the note. When payable to a person or order, or to tlic order of a person, it cannot be trans- ferred without the order of that person, which is written on the back of the note. If he simply wrius his uMuie across the buck of the note, it is then payable to any person, like u note payable to bearer. This is called an Endorsement in Blank. An Endorsement in Full mentions the name of the person or order, to whom the note is transferred, followed by the siizuature of the endorser. Tiie person to whom the note is thus trans'ferred is called the Endorsee, and he may also transfer the note either by a blank or full cndorstincnt. If he endorses in blank, no more endorsements are necessary for the transfer or payment of the note, as it tlieii becomes payable to bearer. Form No. 3 NKnoTiABLE Note, Payable to orper, at a Place Named, with Interest. MoNTRE.\L, May 24, 1888. Three months afier date, I promise to pay to the order of W. J. Davis, three hundred and seventy-five dollars, at Colle<,'e Bank (here), with interest at seven per cent., value received. T. W. KANE. The following is the back of the above note, with an endorsement in full and an en- dorsement in blank. 1^ tc sH '. ^ '-^ "S ^ Ph X ^ It h— y. !_; ■< CJ H 1? < W ■•^ .4 J . .t»». SS P^ ! ! 45 1 to 5wn ;hat %hle rson tlie ans- any lotc note by a sary VIS, vcn Q cn- When an endorseJ note is not paid at maturity tlio holdiT ,slir to a person named in the check, or to his order. When payable " to order" it must be endorsed for transfer or payment similar to a note. It is not entitled to days of grace. When writing the amount in a check, bo careful to leave no space at the left iiand side of the words. The unused space, if any, should be at the right and .-houM be tilled up witli a iieavy waved line. Write the amount in figures on the left iiand end of tiie check, beginning clo.^e to the $ mark, and express the cents in the form of a fr:iction. so tliat nothing can be afterwards inserted. Tlie Stub is tliat portinn of tiie p:ige left in the book after the checks are torn off. On it should be written tiie iimiilu'r and the dat,' of each clieek, to whom and for what "iven. and tlie amount. It should be tilled before the check is written. On the back of the preceding stul) enter tlie deposits and tlie jiroceeds of notes left by us at the bank for collection and discount. (^Scc iiage 4s.) The stubs in the Check Book will thus show an ex- act copy of our bank account, and should be balanced whenever the Pass Book is|( balanced. They should agree, allowance being made for uiqiaid checks. When L),.. all the checks of a page are torn off, the total of each side of tli • stub should be carried forward to the top of the next pages. When all the checks are i:oiu', the covers of the cluck-book should be cut to correspond with the size of the stubs, which tlien becomes a neat littK book containing valuable information. i Dl!. ___^ — ■- > FORM OP BANK COLLi<:GliBANK in acct. I8S8 .June 1 Cash, H.B. Do H.B. Do H.B. Do Sri.-). Ch. $1875 H.B. 1500 1200 500 2000 5200 4f FOllM OF DKI'OSITSFill'. DEPOSITED BY IN Till'. BUSINESS COLLEGE BANK. MONTHEAI,, ^Jffe/te 5, 1888. PASS BOOK. with W. J. Davis 1888 Juin- 15 18 20 30 Check Do Do AVIS, Cri. No. 1 12") 50 2 2S00 3 200 Ralanoo, 2074 60 5200 00 — „ ,_ ,^ 41 Back of Pi-ei-ndinj Sinh. June 49 FACKUF STUBS. ANJJ CllKCKS. A'o. Dniv, Qkms IT), 1HS8. To (J. ^'/t'ojf, for Cy^Ae. 125 Nu. 1, Diik, yune \^, Ihs.s. To B. ' /(^uJcani, Fur yttl c/t'ote i/ue i'/n (^»/- 2S0O Date,Qu»e 2G, 1888. To ^off4^, I No. 1. Mnnlnn/, %,„ 15, 1888. ,f l-'.V"7n«. I COLM^]GI] BANK. To the CASHIER. /b;- '^^as/f. ^/Ja/cf. itHce. 200 2074 50 No. 2. Montreal, c^»»t 18, 1888. $2S00""/,„„ COLLEGE |]ANK. Pail tu 3'. ^'^/(^(tJcofif', or Hearer, C/i('euf'u-*/a/i/ //efM(/if(/ /mo Dollars. To the CASHIER. Xo. 3. ,^200 ""/: Montreal, 'J„,ie 2G, 1888. KIU COLLEGE BANK. •/'",'/ to <'(^e //^~--~r-' ~--'^- -'--^ - -^-^or Bearer, K^^o- /itnic/le(/- -.-' ''^^ I ^fi^ Dollars. Qf.J. C-'i- 5200 00' To the CASHIER. Xo. . ., Data To /•or No. 188. COLLEGK BANK. Pay to To the CASHIER. _or Bearer, Dollars. $^ Second Method.— Hack ok Sti'is. Many book-keepers prefer to suljtniet the first check from the auiount on dopos-: it, and then add each deposit and subtract each check as it is made. As this method always shows tlie " bahmee on deposit" the bank account is not so likely to be unknowingly over-drawn. The Pass-Book is sometimes kept in a similar manner, especially in the Sav- ings Department. 1888. June I 11 15 'is !24 Uepiisit Do T)eii(i.«it lialan. Bala: Check No. 1 , Balan Ciieck No. 2 Depu.sit . Bala Ciieck Xo. ;: Balance Ba ance. !500 1200 2700 .-.00 :i2C'^ 12.) 50 :{071 i 50 2S00 I 00 271 2000 227-4 200 2071 .JO 00 50 00 50 Model Com.mission Skt. The object of this set is to illustrate the i'oruis and uses of the Journal Day Book, Commission Sales Book, Invoices for Shipments, and Accounts o!' ^ales. JouRN.VL Day Bodk. (j.d.h.) In this book the Journal and Day Book entries are combined ; hence the name. This form of book saves time and labor. It dispenses with one book, and brings the entries into such close connection that tlieir relation can be seen ;k .. glance. Considerable judgment and taste can be displayed in the arrangement of the entries but a little attention and practice will enable any one to make them neat and intelligible. (See model on page 52). The posting is done the same as from the simple Journal. CoM.MissioN Sales Book, (cs.h.) This book contains all the details of the consignment tran.saetions, A .separate account is usually opened with each consignment. The charges and net proceeds are placed on the debit side, and the sides on the credit. The form of book and arrange- ment of entry, arc very similar to the Cash Uook, as will be .seen by examinin- tlie model at bottom of pages 52 and 53. In working the following memonmd;., use the Journal Day Book, Cash Hook and Counnission Sales Book. Enter the transactions in tl>e order of their occurrence into the several books. Keep the Cash Hook as a principal book, as previously e-vplained, and the Commission Sales Book as an auxiliary. Memouaniia of Transactions. Montreal, July 1, 1888. Commenced business having on han.l Cash, $1525 ; 3Idse. i)er Invt., $9775 ; House and Lot valued a $;J500 ; Store Fixtures, ,^|J0O ; W. Warner's m)te of 5th ull'. at 90 days for $525; Amounts owing on account by H. Buie, )^1275 and by J D Dayis, $2500, " ' J ■ • The liabilities as.sinnoa by the business are :_Amount.s ..wino' o., aeeount toll Miller, .^10(10, and to P. Joyce, $1500. My note of loth ult. at GO days favor of J llii.s.scl, for f(2')(){}. 2.— SnKl ir. Buie on nccoimt, 3000 hush. Canada Red AVinter Wheat, at S7e :i—Bot. of II. Miller, L'OOO hudi. Canada Wiiite Winter Wheat, at' 82e ■ L'oOO bu^h. Canada HjTiii- Wheat, at 80e. (iave in payment our note at 3 niondis. ;•{.— Sold ihr eash 15 pes. Fatiey Flannel d")!) yds., at 40e. 4. .Shipped 15. Morin, & Co., Ottawa, to be sold on my account and risk 1 case f Doeskui, 25 pes., Cd:) yds., at 81.40 ; 1 case Dhiek Glaee Silk, 2:) pe.s. 1000 yds at §1 "0 1 case containing 10 pes. Sup r Fine Black Broad Clotli, 200 yds., at 83 and "^0 pes' French Merino, 000 yds., at -yrK: I 'aid ei^h for Casing, Cartage, Insurance, ke. 81u.' (See Invoice on page 54 ). ' ' 5.— Gave H. .Miller, W. Warner's note of 5th ult. for §525, less disc. 03 days at 7 per cent; Cash for balance of aeeount to date. 0._Ree:dved from J. Dumu, Toronto, t., he sold on his account and risk, lOO hrls Superfine Flour, at §3.15; 150 b.ls. Strong Bakers', Do, at 84.10 ; 200 Ontario Ba-s (extra), at 81.80. j'aid freight 872.75, and cartage 815 iu cash. 8.— S,dd J. 1). Davis o;, account, at 30 days.' 100 brl^. Superfine Flour, at .^4.05 ■ OO brls. Strong Bakers', Do, at .85.25 (from J. Dunn's Const.) 0.— Sold Smith .t Son for cash, 20 brls. Flour, Stn.ng Bakcra,' at .85.25, and 50 bags lb, Ontario l-ktra, at 82.15. (.1. Dunn's Const.) lO.—Sold Burns ,t Co., fnnn J. Dunn's Const., SO brls. Fl.mr, Stron- Bakers' at 85.20, and 150 l:,gs Do, Ontario Fxtra, at 82.10. Received in payment 'their note at GO days. 11.— Closed .1. Dunn's Const., and rendered hini an Aeeimnt Sales. The char"es (not previously entered) are : Storage 813. Insurance 82, Coopera-e, etc., ;83 ; Cenunissiou on .Sales at 2^ per cent, 8...; J. Dunn's net proceeds pliced to his credit are 8 ^ 12 — If.reived from B. Morin, c^ Co. an Aec.iuit Sales „f the goods shipped them">"u 4th inst. The net proceeds are 8.".750, which tlu-y have placed to my credit. 13.— Received of 1[. Buie my not.; of 15th ult., favor of J. Rnssel, §2500, less •liscount 35 days, at S per cent, and cash for biilamc of account. 14. — Beeeived of B. .Morin cV Co., cash in full of account. 14.— Received cash for house and lot .sold this day, .84000, and U rent due to date, .815. IG. — Paid J. Dunn cash in fidl of account. 10. — I'aid current expenses to date in cash, 8G0. l.NVENTOUV — Mdse. on hand, 87G88. Store Fixtures, valued 8855, 52 •5 "IK Dr. Jnlv .MONTREAL, .JULY 1, L'^SH. M.lse. Ri'iil l<>tute. Fixtures. Rills Pu'c IL liuio. ,L I). Ihivis. Tc I Stuck. Coliiinoiiced liisiin'ss li;ivin,:_' Oil liaiiil IHT iiivt. I Huiisi' iiiiil lot viihii'J lit. I] For store luiil (iHicc valiR'il at. i \V. Warin-rV nule uf.uh u't. ^ 00 d>. ' Owes nil ;u'(Mlllit . ,1 Do "" , , •! Invcstiiieiil (-le ('.!>.) Stock. l.iabililie.- as-miicil. Tu n. Miller. Due him oil uccouiit. ] •• P. Jovce. i Do Du I '• BiUs'Pav. :Mv note fav. ,1. Uussel /(/' (10 ils. trom ! 'iJtli alt. for. IL ISiiie. To Md-e. SoM him on account. ; 30UU hit. Canada 11. W. Wheat /©STc. 1 Milse. To I'.ill^ iB,,t. of H.Miller, 2(Mi(t l.iusli. (.'anada \V. \V. i Wheat ' sil.UI. 8'''7a: I ca.se ISlk. (ilace Silk. i 20 pes. Umu vds. r„':sL20. $1200, 1 (iase coiilainin.ir S. F. I'.lk. Hroad Cloth, 10 pes. 200 yds. '<(> :?:>. ^l-iUO Freiudi -Merino, 20 lies. 000 yds, iTii ,').Jc. !?-lOo Aiiits. ford. 0775 ;!J00 000 52,5 1275 2500 5000 2010 .3(540 3170 32895 18475 1000 1500 2500 2010 3G40 3170 32895 Commission. J. DUNN'S CONST. 11 To Cash. " Do " Cliarges. " Coiinnissiiiii "• J. 1 limn. Illeceived Irom liini, per Str. "Queen," to lie .soil! on his account and risk. 100 hrls. Superline Fluiir. ifiO hrls. Strong: liakcrs" Flour. 200 hat's Ontario, K.x'ra. Paid freight in cash. '• Cai'laiic •• Storage, i?l.'!. Ins., $2. Co(.|.cia;:e. *•'• 2.1 per cent, on sales. !?LtJU. Ills net proceedsto Cr. 72 75 15 18 40 28 •Hit 97 1611 m MONTUEAl., .UTLY 5, 1888. 75 28 97 Aiiits. lii'(.t. liii'il 1 32895 I 518 r. 007 731 1523 3750 2500 57 43 50 25 i IT 32895 525 0G7 731 18 40 14G4 3750 19 2480 '"' H. xMillcr. IntC'i'c.-t. To IJills live. (iave him mi account W. Warner's note ot 5tli ult. (» 110 (is. .•i525.00 Disc, oil' 03 lis. m 7 pel ci-nt.. " 0.43 .\miiMnt ol' nole. J. D. Davis. To J, Dunn Const. Soli! liim at 30 'lays, 100 Ijrls. Sni)er(ine Flour fS) $1.05, S405.00 50 brls. StrL'. Baki-r.-' Flour ([i 8525." ,?2G2.50 50 10 Sold Burns A; Co. on their i.ote at 00 (lay.-, Hill of Flour i.er C. S. B., 11 Clo.'-ed J. Dunn's Const, aiid rendered liim an .\ccount .Sales. Storage, $13. Insurance. $2- Cooper- ajre, etc., $3 2}, per cent.o!! Sales, $1011. Ilis Xet Proceeds to Cr. 1 •) , Bills Rco. To J. Dunn Const. J. Dunn Const. To Cliarj;cs. " Com. " J. Dunn 28 97 B.Morin & Co. ToSiii])! Ottawa. Rect'ived trom tlitiii an Account Sales of the uoods shi|i)ied on 4th insl. on my account and risk. The net proeeeib to Cr. arc. 1 '{ Bills Pay To Interest. " n. Buie. Heceivcii of 11. Buie, .Mv note of 15tliult., taw of J. lluss?2. Coopurau'e. &.c., !?3. Commission on Sales, §10 11, (a 2h per cent. J. Dunn's net proceeds. E. & 0. E. Montreal, July 11, 1888. A. Student. The Account Sales should be accompa.iied by a letter somewhat after the followin- lorm : — " J. Dunn, Esq., Toronto. Montreal, July 11, 1888. Dear SiR.-Enelosed you will find Account Sales of goods shipped mo on the Cth inst. 1 he net proceeds are $1404.97, which have been placed to your credit, subject to your orders. I trust you will find the results satisfactory. _ As there is ,,uite a demand for flour in this market with an upward tendency in prices for good .,ualities, I consider the present a very favorable time for shippin-. I will be pleased to give close attention to any further orders entrusted to my care. " Thanking you for past favors, I remain, Very truly yours, A. Student. G 60 Set VII. Use tlic Journal Day Book, Cash Book, Commission Sales Book, and Ledger, as exhibited in the precedinij; set. Keep Bill Book, Check Bnnk, and Pass Book, as directed in the Sixth Set. Make an Invoice for the shipment, an Account Sale for the consign- ment, and \7rite letters. Open the ledger accounts sufficiently large to contain the posting of the 7th, 8th and l>th sets u.idcr the san)e headings. Allow Cash, Bills llcceivable, Bills Payable, College Bank, and Loss ctGain, A a page each, and all other accounts J page each. Open the B ilance Account for this set on loose paper — not in tlie ledger. Set VIII. Commence this set by bringing down the balances of the Seventh as explained on page 25. Use tlic same books as in the preceding set. Write iill notes and drafts with the necessary acceptances, cndorsations, cancellations, &c., and make the required entries in the Bill Books. Before beginning this set the student should become familiar with the principles contained in the followinu' brief remarks on DRAFTS, A Draft is an unconditional re(|uest or order written by one person to another, requesting him to pay a specified sum of money to a person named therein, or to his order, or to the bearer. A Ih'al't is simply a letter, in which the formal, or English style of address, is generally useil, that is, tiie names of the writer, and the person to whom it is written, are botii placed at the bottom. The writer is called the Drawer of the draft, and ho places his name at the right hand side, The jiarty to whom it is written is called the Drawee, and his name is placed at the left hand side. The party to whom the money is to be paid is called the Payee, and his name appears in the body of the draft. Drafts are drawn by the Drawer on the Drawee, in favor of the Payee. (See Form 1). There are usually three parties connected with a draft; but the Drav.er may draw in favor of himself, in which ease he is also the Payee. The theory upon vhich a draft is based is, that the Drawee is indebted to the Drawer for an amount equal to that for which the draft is drawn. The indebtedness does not always exist, as drafts are frequently drawn and accepted (or accommodation. As a draft is simply a letter requesting the payment of money, the Drawee is not Jiable upon it until he makes himself so. As he is at liberty to refuse or accept the responsibility of paying the draft, it is desirable to get, as soon as possible, his promise to ]iay it. Tills jjromisc is given by tiie Drawee writing, generally with red ink, the words accepted, (he date and his slgiialiire across the face of the draft. This is called acce^j/iwcf (he draft ; the draft is then called an acceptance, and the drawee is called the acceptor. (Sei' J*'orm 2.) Tiie place of payment may be inserted in the aeccptancc, when no place has been mentioned by the drawer. (See Form 3.) ■ - ^ :0 , When a draft is drawn payable "at sight," or a spceifiod time "after .sight," the date on which it was accoptcd should bo given in the acceptance, and as it is from that date the time is counted in fliuling tiie ,hite of payment, the draft sliouM be presented for acceptance as soon as possible . "When payable at a si.eeified time " after date," it is not necessary to give the date of acceptance, as the time of pnyment counts from the date of the draft. It is, however, advisable to give it. Drafts payable " on dcmnnd," are not entitled to the days of grace. When the dr.-.wee refuses to accept a draft, it is said to bo lUshomred, and the holder .should tlien have the drawer properly notified. This notice is generally sent by a Notary, and is called a " notice of protest for non-acceptance." It should stutc that the draft was properly presented, and that acceptance was refused, and that the holder now looks to tlie diawer for the pnymcnt of the draft, interest, damages, ..c. When a draft has been accepted, the holder must present it for payment when it becomes due ; and if payment be refused, be must have the drawer properly notified, and then tlio drawer becomes responsible for the payment of it. It is then said to be " i:ro- tested for non-p;iyment." Endorsers on a protested draft to whom the liol'^or intends to look for payment must be also notified. (See Form 4.) The law presumes that the drawer, by the very act of drawin the draft, says to the payee: " Present this draft to the proper person, in a proper manujr, at the proper time and place, and if he docs not honor and pay it I will, if you properly notify me without unnecessary delay." The payee by the act of leceiving the draft agrees to these con- ditions, and he must perform all of them or he will lose liis recourse against the drawer. When a draft is left for collection at a bank, a .slip of paper may be attached to it bearing the memorandum, "Not to be protested. Take this oif before presenting." If the draft is not accepted or collected, it will be returned without incurring the expenses caused by protesting. Tlie endorser of a note or draft may also be held liable without a protest, by makinf^ an agreement to that effect. This is done by the endorser writing upon the back of the bill the words, "I hereby accept notice cf non-payment, and waive protest," and his signature. Drafts are transferred by delivery and endor.sements the same as notes, and the liabilities and duties of the endorsers are also the same. The liability of the drawer of a draft is similar to that of the first endorser on a note. On an accepted draft the drawee's liability is the same as thnt of the n)akcr of a note. The maker of a note and the drawee of a draft are first called upon for payment, and in case they fail to pay, then the endorser of the note and the drawer of the draft are held responsible for the payment. Tlie holder of a protested draft has a claim against the acceptor, drawer, or any properly notified endorser, and can take action against any of them. Any endorser who pays such a draft has a right to the po.ssession of it, and can then demand payment from the acceptor, drawer, or any other protested endorser whose name was attached to it before his, but not from subsequent endorsers. ■ ' 1 1 IS' ii m m Form i. draft payable to ileauer at a specified time from skillt. C^< ■trttli •a/, C?ft*^. 6, i888. ■ieeef'/'gr/, ^^et e/teiti^e /c c% q/. d^n///j (F.iy., 1 '<<7-t*t/ I' lynadfiM.. We cannot tell the date of payment of the above until it has been accepted. It would require time for transmission to Toronto, and may then be loft with the drawee for about twenty-four hours, to give him an opportunity to ascertain if he will owe the drawers that amount wlieii the draft becomes duo. It would probably be accepted on the 8th, and 5 days after, with 3 days grace, would give August 16th as the date of payment. r Form 2. accepted draft payable to order at a specified time after sight. / '^t^M' '^/jiin^ ^neley fa/cte ucecveei, ann cuci>-ye fne d^^7ne /a I ^. (J. .0a.u>do ■:\k '■ ■It i m at FotiM Xo. 3. DRAFT DRAWN ON A ULANK FORM, PAVAIU.K TO ORDER AT A SPECIFIED TIME AFTER DATE, WITH ACCEPTANCE CONTAINING PLACE OP PAYMENT. No. /-3S-'/. Kingston, Ont., Jty. -J6', /SSf •^/"eji r/r>>/.) n/itci "^a^e, , _^^^.^^^,^^^.^^ ^, Pay to the ordcf of '^/ifWu-.icven ^un'Aec/ a/ir/ /t//i/. - . .^ '.,„^'';^„'x^_.-.,^,-^^-^^_^ — ^~.^^-^^~^^^^^^°° I DollarS Value Received, and char<;c the ?auw!;tq %ccoUDt of •^^ -;v J. S^Uei. Back of above draft, showinjj,' transfer by endorsement, also Notarbil certificate of protest V ^>^ -1. 5 S • .■\u« s..,. Oct N'v Doc Jitii 18 88 Aug 8 r, <|g. 1/88 13/ 111 ,Vi() A (( 7 Furnl- 1 tiiru. PAYABLE. Da to of Nott! i)r Aoci'plnce Time, AVlieii Due. Amt. Wlion and How Iteduemed, 1888 Allf i;i Date Sig't :! da. Vear I/8K Jan Feb Mar Apr iM'y .rn .I'y A UK 1 ll«/l!» 1 Sop Oct N-v Doc Jan ^7r)l"U5 1«'k8 A'g III I'liiil per C. Bk. When entering foreign bills, the amount of tlie foreign currency when it differs in denomination from ours should be put in red ink, any place on the line where there is vacint space. The equivalent in dollars is entered in the money column. When a bill or note is dishonored, the words "Protested for non-acceptance " or "non-payment," and the fees, should be written in red ink, iu any vacant space on the line occupied by the bill. When we become liable on dishonored bills or notes, they may be entered in the Bills Payable Book if they remain outstanding. ■i I G2 Form No. 4. — Notauiai, IMuikst and Notipk of Piiotkht.* (Tlic jiarts luiiitud in vX/z/Ziire writtoii with u pen,) :j'jr ue .^(enyj/.,,, fijn/., c/i,^. "''/''^' iecttveer tine/ c/ict irfe (Ac Jatttr /f eirc<'u>if ''et, ill tlio joaf oiio tliousaiiil eight hundred and ny/i/y-ety/iV, m tlio aftemooii, I, 'y'/,„;/,.i '''"„.,/,,„,/, 'Soiviv^ Public for the Province of Quebec, in tlie Dominion of Canada, dwelling in the City of Montreal, at the request of c/r .2^. S'avij, .yh-/e.iM, iejt,/,'/,y \\\ tlic haid City of ^lontreal, did exhibit llie Original Bill of Exchange, whereof a true copy U above written, unto <^T ^JS/<(e, the (icc/i/n thereof, «•/ //j^ ^/^i,j,'re<,) ''(^c//^,/e- .'^]„ >,/(', .//otiAer,/, ^\\\ Hpeakitig to a t^',///^,> / did demand /ff^/«<«/ thereof, unto wh ■ \ demand he answered " »o/,i/i'», ('»/., ««./ /» /^» di >.>,f//> ^// . ,'^.////,v^ ill Her .Maji'sty's Post OIVkh', in tliis City of Montreal, and prepayiiii-' the postnL,'e thereon ; of wliieii said notice a duplioute is hereto iittuehed, IFn iTCfilKmOn)) ?Ql)CrrOf, Ilmve, on the last mentioned day and year, at Montreal aforesaid, siyiied these presents. (Notice of Puotest.) 71 tfiail/fin, Cm/, D-i. C/ir/olJei, • /'/(■/i/iea/. J MONTRKAI., /(Va Se/>/em^el, 1888. c/" ci^aj/*/ 'a J3iLL OP ExcilANQE for )8''//.>"c.""/,g , dated at -/vui'^.i/on , &a/., the .^JV/ Jt/ayftj/, /.n^C "P"" .^. J^uf'e, ^/^-y/«^«-// a,>y ftcce/,/../ \\\ favor of c/! <^,n*V/C, payable ■/,•„ ,/ay,i after -/"//^ and l)y you r/t„,,j// -1. eii'/cn>ey, was tlii.s day, at tlie request of o/, £j^, C2^aui'.>j Jio/eMoij iejti//y. iu tUis City, duly protested l)y mo for »'m./,aunte„/. When the above is properly folded and lyled, it will present the following appear- ance. CO kj II 00 1 CO h M 1 s 3 ! i ^r . . . ^ ^ U/) c \. ^ i. / ^ /ssy. 1. J fry ///<'/ ///e\i 9,u/ '/C ic//Ui/'/ e , ^.Jrrf- /jf/ attf/ /All r/ ff >/,'/(! 'r/J J ^/.a,t />. ///e ole/e> r/ a/. Ji'Vi/f / -Jrft//, ^fhie ///rrrJcf i/rf Ar/fjir/.l , .if'elt/ i/.y , I'a (lee ieeet i frr, (/a a r/icil'/e rfi ciccrffiif 0/ / /J\ ^. a/u/^. J>? S^avih, Cy . \ • ; ^ eH'/i-ll , e,y. \ 2t, (J r/ ffj///f/l'-/ /'ff'/ '*' '''C Olir/el (/ CZ^. U^flf'c /■■ -C/v/, V ■'■''" /j/'^rutfj/d //o-tfitr/j, j/etu/i^, faa-te >eceit'e(/.- (fnc/ c/u/iae lo- arcritii./ 0/ So S S^ !3uW,,, C>y., \^ ^-LoiKiitij ( iiy. \ 60 lo. //. ^-n.yiea/, Jaj/. lO, r888. O, CrcZ/ffj/fj/f ffil / rre iecen^ec/, (Hk/ rZ/rth/e /n arrr^fr^j/ rt. By el..,,.ly ohsoi-vin- tlir wor.lln^- ,,f the lir>t. jmi will ,,oiv,i\v that the (l.-awoo is miuosted t.. puy it if lir lui. tmi aln.My |,ai,l tiu' >m-m„,1 ,„■ third. IT he lu.s paid either the second or third, he is wa re,,„ired. oi even a^k.'^l hy the .Irawvr V^ pay tie, Urst. In tile see(;n.l he is re,|iiestet or thinl. Ifhr has pahl either tlie fir^t .;r third, he will not. of roui-e. pay the sremnl. In ih.^ third he is in like manner iisked 'opay ii' lie has not already paid liie first or seeoud. Thedriwee is entitled to the pos.so,s,sion of the one he pay., as ii is lii> proof ,,C payment. When one i^paid the other.s are void ; for the whole set eonstitutes Imt one I5ill of (''.xehan-e. The ol.ject of drawin- them in set^ is that tliey may he sent hy dill'erent conveyances, or at dilferont dat-s, so as to save tinr' in eas^' oiu' or more >hoald h • lost. Bills oflvKeiian^e are n>ed l^r the -ame purpoM'. as drafts, and like them, must ho presented Ihr ae 'eptaiiee and payment, and in ea-e of di>li,,iior mii^t he pr -test d. Bills of K.vehan-eare n^ially sold hy hank- and hrok 'rs, and ire v.Ty ennveni.^nl for payin;^' tlehts due in .listant pLiee-. Supp.iM' .\ i5, (,f M,,ntreal ewes ("' D. of J.on(h)M, England, and wi-hes to p ,y the del.t, he ean huy from the hank a -, t of Kxehan-e drawn' on a bank in l>ondon. ],a.\al>ie to the order of (' 1). Mr em thim s.nd die liisi ,,f r.Kehan-c ljysteam>hipfr Montnil. and the second hy the n-\t steam r, or hy way of New York. (J 1). will uet the lirst one that arrives accepted and p;iid hy the hank un which it wa.s drawn, and this of course settles his aeeoiiiii a'jaiiist .\ !!. A 15 would prohahly keep one as voiiclier, in ea.e the other two >hoidd |, ■ hist; whi.di, of course, i.s very urdikely. It would !.,■ atiMiid lor him to -rnd the three in ono cuvelope. Sill' IX. To he worked in the same form and manner a'^ the i'!i-hth >r(. 66 (0 REVIEW QUESTIONS. 225. What kuowknlue slicnikl be :ii((uirctl wliile u.siiiir the sskeleton ledger? 226, What is tlien to bo Icarnea ? 227. What bodks are to be usimI in tlio First Sit? 22S. What documonts are to be made out ? 229. Why is tlic Hay 15o(ik an iniivirtant book? 2'.W. Wlicn are the entries made in it ? 231. Wiiat should they contain ? 232. What style of lansruau;e sliould be used? 233. In what order and when should they be made? 234. Rule paper, and enter the Ibliowing transactions in appropriate language, and proper I)ay Rook form. (a.) Oet. 1. ISSS. In voted in business, thi.s day, cash amounting to 82500. (6.) ■' 2. Bought of C. J. JJolierty on acduint 1000 tons egg coal at 83, and 600 tuns stove coal at 83.50. 2. D. Donovan boudit of us on account 100 tons stove coal at $5.15. 3. Sold James McShane on account 501) tons egg coal, to be delivered by us at his yard, at the following prices, namely : 300 ton.s at 85, and 200 tons at .S5.10 per ton. 3. Paid Albert l.'nutliier's liill for cartage on above, 8125 in cash. 3. Sold 1). i)on(iv:in 2,")0 tons stove coal at 85.05, and 300 tons egg coal at 85,05; and rteeived in payment for the above goods his note, signed by iiim at sixty days for 8500, and .Folin Ward's note made in his favor, and dated on the 19th of August, for 8500, also check on College Bank for 8500, and the balance is to be paid by him in 60 days from tlii- date. -1. Bought for casli 1 chaldron coke at 8."}. for office use, and paid a man for carrying it in, 30c. 4. I). Donovan paid us ca.sh on his account 8515. 235. Wliat is journalizing? 230. Where are the Journal entries t.aken from? 237. Where are they taken to ? 238. How can you tell that a Day Book entry haa been journalized ? 239. Is the Journal a neces.sary book ? 240. What is posting ? 241. How can you tell that a .lournal entry has been posted ? 242. When should a Ledger account lie carried forward? 24.'!. Explain how it is done when there arc amounts on both side-. 214. ILjw when tliere are amounts only on (me side ? 245. What is an invoice, and what does it contain? 24t!. .Make an invoice for the goods sold James McShane, p.r cjiiestion 234 h Book ? 25>^. What parts dif the (J. B. are similar to a Journal, and a D. B. ? 25''. Wiiat transactions are omitted from the Journal when T the C. B. is used as a principal book, and why ? 2C0. Wliat is a principal book ? 261. What is an auxiliary book ? 2(]2. Explain Iiill Book? 31(). With what siiould that amount agree ? 317. When a Ledger is tilled, how is a new one opened ? 318. How is the old Ledger distingaislied from the new ? 319. Wiiat arranirements are generally made with the Cashier before opening a bank account for busmess purposes ? 320. For what other purpose might a bank account be opened? 321. What is the merchant then recpiircd to sign, and why? 322. What does a Deposit Slip show ? 323. To whimi are it and the money given? 324. What does he do with them ? 325. What is done by the Ledger-keeper ? Ii> r* 68 IH' ;!l'i!. Wli.it is :i Hiuik l'iiss-15ook ? 327. Wliiit iw shown l)y its Dr. sido, Cr. sido, and (lifViTciiw ';* ;!2S. Wiieii Jiio tlio outfit's niado uii its Dr., wlion mi its Cr. ? 329. Wli;it use to ii nierclKuit are his cheeks rutuniod l)y the IJaiik? 8.'»0. Witli what should the biihinei' of tlie P.iss-Book a;j;ree ? 331. T[-\v couhi they disagree and .still be correct? 332. When does the Leducr-keeper say "no funds? " 3:5.'.. Wiiat is a Cheek-R.i.k''' 334. What is a cheek? 33,"). What is required on a check jtayahle to order before it w .11 he paid? 33t). Wiiat when payable to bearer ? 337. What eaie shnuld be taken when writini;- the amount on a cheek? 33S. What when writing the amount in fii^ures? 330. \\ liat i.s the Stub and what does it show ? 340 Write a letter di"-eriliiiiL: two nietiimls of kei'pinu; the Bank account in tlu; Check-Hook. 341. For what purpose is the Model Commission set uiven ? 342. Why is the Journal Day Hook so called ? 343. What are the advantages of the J. D. B. ? 344. How is it iiosied? 34.'). What lioes the C. S. B. contain ? 34tj. Wliat is entered on its 47. What on its Cr. ? 348. Ilow are the not i)roceeds found ? 349. Write a Dr.: licadinu for an invoice of gnods shipped to your agent in (Juebee. 3.")0. What is an Account Sal s ? H51. By wlioiu and when sliould it be made'? .!r)2. With what should it ai:rec ? 3.')3, W^li.it is nn'ant by consignor and consigni'o ? 354. What by hi. itO. E. 355. Wliat blinks are used in the Seventh Set? 35(>. Is it customary in business to keep the Balanic accuunt in the L^'dger ? 357. When goods are received to be sold on conniiis«iii'i why "s their eo4 not enterc-d in tin; moiii'y column? 358. D' rc(|uested to clo>e a consignment lu'lbre all the gooils ar" sold, what shmild bo done with the amoutit oft'ie unsiil 1 and why? 359. Wli 'U is it miure'ssary to open a separate account with each eniisiunment ? ;'.()(». What is a dialt '■' 3t)l. What i> the Writer called? IJlL'. Where docs his name apjuar? 3().'i. Who is the drawee? .3()4. Where does his name aj)pcar? 305. Who is the payee? 3t!(J. Where do^'S his name a|ipear? 3()7. IJy whom are drafts diawn ? 'M'l^, On whom ? 3<;9. In whose favor? 37(1. How many [larties are usually coini cted with a draft? 371. When miy there be mily /( .372. Upon what theory is a draft bas'd? 373. Is it always so? 374. Why? 375. Why should a draft be accepted as M ion as possible? .37(1. llnW does the di'awee give liis promise to pay the draft? ■!77. Alter a draft has been accepted wh;it is it ealli'd ? 37>!. What is the drawee then (ailed? .379. AVben may the aceeptanee contain the placenf payment ? 380. Why should the date of acci'ptance of sight drafts be givt'ii ? 3S1. Why is it unnecessary in drafts jiayable after date? .'JS2. What kind of drafts are not entitled to days nf i^race ? 383. What should be (hme liy the holder of a dishonored draft? 3S4. What is a dis- honored ilraft ? 3S5. Who sends the notice; and what is it called ? 3S(J. What should it state? 387. When should an acceptance be presented foi- payment? 388. Wlio should be notified if it is not paid? 389. Why ? 390. What is that notice called ? 391. What agreement is the drawer presumed to have made ? 392. What is the p-ayce's agreement? 393. Why should negligence on the p.art of the payee affect his claim? 394. How may a Bank be instructed not to jnotest an unpaid draft ? 395. How may endorsers be held liable without a protest? 39(1. Wiiat kind of drafts maybe trau.sferred by delivery? 397. What by endorsements? 398. What parties on an acceptance are similar to the maker 'lud endorser of a note ? 399. Who are first called upon to pay 1: T iifccptuil (li'iif't iiaviiblc to Bills Payable bonk for noU's and drafts. 407. G9 notes ;;»-! -Irafts ? 400, [f they do not pay who could then bo called upon and in what order .^ 401. ()„ what ku.d of dn-fts i.s it necessary to know the d:,te of acceptance in order to find the date nf payn.ent? 402. Why •.' 40:i How Ion,- may a drawee hold a dralt beh.re ae,ceptin-it? 404. Why? 405. Write at order. 400. Write the bradinirs ol Als., „f a JJills Re,..ivable bo„k. 40S. With ' wiiat shouM the"]iiS"lW;;' ble'on handag.ve? 400. With what the oustauding Bills Payable? 410. How „K.y the addition o the Ldl h.,oks be made To auree with the balances of their Led-er aeeounts '^ 411 How should the amounts of Ibrd^n Hills be entered ? 412. How nmy protested IJilN b," xnarke n.thelhl Jiooks? 4l;i. Under what circumstances n.ay an entry be made in the I„lls Heee.vable and Payable books for the same Jiill ? 414. Write an aee..pted draft w.th place ol' payn.ent fixe.l by the aee..ptor. 415. Enter the protest upon it 41G. ^\_r.tc the printed part of a blank form for protest and notice in red ink leavin-' appropriate blank spa<-es. 417. Fill the above blank form, using black ink ^ and fyle it. 4 IS. Fold Bill 01 Fxchan,e be made ? 421. What is the drawee requested to do .. tL First of Jxehanoe.^ 422. What in the Seeon.l ? 42;j. What in the Third ? 4->4 Why does the payment of one render the others void? 425. Why should a «/,, be presented for acceptance an.l payment? 42(5. When and why should they be protested 9 4'>7 Ev who,n are they usually sold? 428. For what are they convenient? 4->i) Exphin the oj.crat^,on of paying a .leb. in Paris, France, by means of a b/^. 430. Why would it be al^surd tj> send the three ,n ..envelope? 4:^1. Write a S.t of Exchange drawn by the Co o, „.k on the Jianko England for £125.10.0 stg., payable in London at Gu days Bight to the order of Junes it Co. •'^ •^:pi^mmmmm wmmmm " A h , 1 70 CHArTEIl V. SINGLE ENTKY. Bookkeepers ami authors differ greatly as to wliat constitutes Single Entry. It may, however, be regarded as a jiartial record of business transactions confined chiefly to personal indebtedness. It contains no intentional record of losses and gains, and affords no proof of the correctness of the work. Double Entry is a complete record of business transactions. It treats not only of personal indebtedness, but also of property and causes. It contains a systematic record of losses and gains, and affords a proof of the correctness of the work by means of the Trial Balance. Siniile Entry is so called because there is only one posting f|lJrm each entry, and only one n.'cthod of showing the net loss or gain. Double Entry derives its name from the fact that each transaction requires at least two postings to the ledger, and that it affords two methods by which the net gain or loss can be found. Both methods must give the same results. These methods arc: — 1st. By keeping a record of the gains and losses in accounts employed for that purpose. The difference between the results of these accounts is the net gain or loss. 2nd. By keeping such a record of resources and liabilities as will enable us to find the net capital or net insolvency at stated periods of time. The difference between the resources and liabilities shows the net capital when the resources are the greater, and the net insolvency when the liabilities are the greater. If there be a net capital at the beginning and end of the year, or a net insolvency at both, the net gain or loss is found by subtraction. If there be a net capital either at the bo"-innin" or end of the year, or a net insolvency at either, the net gain or loss is found by addition. In Single Entry the condition of the business can be found only by the second method, and the resources and liabilities are generally collected at the end of the year for that purpose in a form somewhat similar to the following : — I' I «TATK.MI-:NT of HKCTOII IU^F/S UKSOUiaJKS and LlAP.rLlTIES. TAKKX OCTOIiEIl 31, 1888. : — ' — - - — Cash on hand Mdse. on hand per inventory Store Fixtures do Bill.s IJeceiv;d)le on iiund lis follows: — 1500 8764 450 50 J. B. Morin's note 1000 0. Dnelicsny's acceptance Personal accounts n^eeivable as follows : — John Kearney Luke J. Iyi;an llcniy Lawlor Balance it deposit in College Bank G34 284 193 345 75 37 67 96 1634 824 3500 16673 75 25 Personal accounts payiJile as follows : — L. Gareaii & Co. $2500 ! J. W. llarwood 4073.25' Bills Payable ouslanding as follows : — Acceptance favor of "W. 3Iicliaud 783.55 1 Note •• •• John Buie J»16.45 N( t capital at closing " investment " gain 7173 1700 25 8873 25 7800 6000 The object of making this statement is to find the net gain or loss, .so that the proprietor's account may be increased or diniini.^hed by that amount, in order to make it show his net capital. The first four resources in the abcnc statement could be found without any attempt at bookkeeping, thus : — The amount ef cash on hand could be found at any time by countinff the money in the cash bux or drawer. The value of the Mdse. and Store Fixtures could be found by "taking .stock." (See note on page 5.) The amount of the bills receivable we own could be found by examining the notes and drafts we have on baud and adding their amounts. p. mi' T But the amounts of tlio personal account.': receivable and payable can be found only by kei'ping a nrnnl of our transactions witli cai'b person, and it is for this purposo siudc entry is cbioHy n-od. Tbc ddinitiim and rulos lor adjusting Personal accounts arc given on i):igi' 2. Thi' rccoid is lirst made in tlie J)ay Booiv, and is then posted to till-' pi'vsiinV ledger accdunt. 'flu' aniduiit (if tlie "personal accounts receivable " can be readily ascertaiiied by adding thu ditlcrenecs betwrcn the sidis of such ledger accounts as have the debit tiu" larger. The amount of the pensmal accounts piiyable is found by adding the bal.inces (d'all ledger aci'nunts that have the credit the larger. i\,s other juvijile b.ive our " bills payabli' outstanding" the amount can only be found from a menioranduin of notes and acceptances issui'd and redeemed. This might be kept in the form of a ledger account i'or bills jnyable, but the Bill Book is the most convenient fiirni of record. A Double Entry bookkfcper possesses all the scientific knowledge necessary for Single Entry, but he is ri(iuin'd to use only part of it. If he were to strike out all the debits and credits of bis Double Pantry except the persons, he v/ould then have the correct debits and credits re()uired in .Single Kiitry. It is, however, necessary for liim to learn some simple details relating to the i'orms of entries, which will be found fully illu.strated in the following memoranda of transaetioiis. ■ s Si k I i MoNTiiEAi,, Nov. 1, 1888. The following .'ire Hector Jjiiie's resourcfs and liabilities, as shown by stutemcnt taken from his books from which 1 am to open a new set of books by Single Entry. Tiie cliief books to !ic used are the Day Book, Ledger, Cash book and Bill Book. The necessary entries arc to be made in the several books in the order reijuired by the following memoranda. Tiie posting is to be done only from the Day Book, and the Cash Book is to be closed once a weok. Resource; Invested. — Oash on hand SloOO. Balance on deposit in College Bank 83500. Stock of cloths, trinnnings, and ready-made clothing, per inventory $8764.50. Store fi.xtures valued '^' 8150. J, R. Marin's note, dated Oct. 12, 1888, at one montii for 810(10. and endorsed by B. Lalinie. 0. Dncliesny's acceptance of Oct. 28, 1888, drawn on Oct. 2fitb, at (iO days sight, by Wm. Parrel, in liis favor, for $634.75. Personal account-i receivable as follows ; — Jolni Kearney 8284.37, Luke J. Egan $193.67 Henry Lawlon 8345. !l(!. Jjiabilities Assumed. — Promissory note dated Srpt. 8, 1888, at two months, in favor of John Buie, for. 801(').45. Wni. .Micluiud's draft on us, dated 29th ult. at 60 days after date, in his favor, which was accepted on 29tb ult., and made payable by us at College Bank, 8783.55. Per.-onal accounts payable as follow,s : — li. Gareau Iji Co, $2500, J. W. Harwood 84073.25. ,t(, T <( K (I cS t), 10. 11, 12. U. 13. a 15. 10'. 17. 18. a Sold Jolm Kciiniyoii iicoduiit, J black bmuleloth (;oat ^ $;J5 ; 1 black broadclotli v<-.?;{ ; :5(» pairs pants {.r, 8;{.50; 25 vests ^O 82 ; .'JO vests ^r. ,:!2,10 ; 4 boxes liandkoreiiiefs 24 doz. (W 82.50. Paid (Irayai^e on above in easii 81. Petty casli sales to date ])er i'etty Cnsii Hook 883=i^ I'aid \v;i-;es in full to (bite in cash 89H.S(). (( 'lose tin; Cash Book,) Re(!eived of Luke J. KL;aii ciish on account 8100. 8old Wni. An.>-lie on account. 1 doz. Hue shirts (a 824; ^ doz. lamb's wool un ler- ,sliirts (2 *15; ;} pairs flannel drawers Q .•^1.50; 10 pairs s(jcks (^ 30c. Paid one month's rent of store from 1st inst., in cash 850. Paid our note of 8ept. 8, favor of .lohn Huie, duo tliis day in cash, Received of Ilein-y Lawlor for balance of hi,s account, bi.s note (n, (50 days, pay- able at City Bank. Boudit for casli 5 pieces I'-reiich broadelotii, 25(1 yards, ([r, ,•*,']. Petty cash .sale to date per P.C.H., 8t'(;, 25. I'aid wap'S in full to datt' i" cash .8125. (Close the Cash Book.) .Sold S. Jandreau, I'latt.sburj:-, X, V,, 1 wedding suit 815 ; 1 overcoat 825 ; 11 doz. liandkereiiiefs (a 84; and rojcived cash on account 850, (rave L. Gareau i*t ("o,, check on Collciic Iknk for 8500, and note at 3 months, payable at College Bank, I'or balance of account. Sold (reo. .Martineau for cash, 1 dress coat 825; 1 pair doeskin pants 88.50; 1 vest 85. Paid ca,sh for serubbiiii;, etc., 82.50. llecoived cash of Henry L iwlor for his note of 12th inst., less discount — days (ijj 8 per cent. * In tlie Petty Ciisli Hook (P.C.li.) are cntcri'd tlie small cash transactions of eacli day in detail. At night they are classified, and the total of each groiij) is entered iu the regular Cos! Ijook. 19. Sold McCmuly 15ro.i., '»() boys' (iviMvont^ (.7 ^fi ; 50 |iiiirrt p;intH @ .i?2 ; 35 dnz. collarH (iissortod) (^- !?l.r)U. Kecoivi'il in lull imynu'iit tlioir dnift iit ;50 dayn (siulit, ill tliL'ir fiivor. on Ilicli;ircl Kuams bciiiiiiii liis uccoptiiiuH' of tliis clay. 20. IJuuglitJ. W. IliinvoiMl. hill of dot lis tiimmiii-s, etc., per itivoicf, datuil IStli inst., aiiiountinu to Sll!»S.7lJ. (Javc him on uocoiint cliock on CVtllu>,'c Bank for 81000, and nolo at 90 days from this (Into for ??10U0. '■ Paid waives mi fail to diitc in ciish .*1.'!0. " IVtty fawh salrs io date jier P.C.IJ. 6104. (Clo^i. the Cish IJook.) 2'-. Uoni^htof .f. W. Ivo-Hon aecount, .') do/, cM.tton lio.>,e(.. 81.00; 10 doz. ^silk Iiose @ 87; ir» doz. mixed lio.se (Ti 8-.-0 ; l.j doz. lin.n handkeivhii fs (u S.'>. 2;i. !?<.!d Wm. Anslie 1 hhmkrt cat (fur son) 8ii.r)0 : 1 luke 81 ; 1 su.sh OOc ; 1 pairliose (j,")e; yarn 15c; 1 hlack suit (for silf; 8-iO ; 1 [lair liairline pants ijsS ; binding coat and ve>t, and buttons .^l.')!). 24. bought of .lolui ])avi«. Windsor, Out., hill of uoods ])er invoice, dat>'d 21st inst., anitu'. to 8012. Gave him on aeeonnt our ehfck on Collej^e Hank for 8242, " I'aid Will. Wilson, hookki^i'per, eii>h on account 810, 25. Uccoived cash of .1. \i. .Morriu in full for his note of Oct. 12th, and interot from maturity (<(, (! per cent. 20. Sold James Cooper, 1 suit f ,.e broii leioili s^l.'); 1 muI Cainuhi tweed 822 ; allowed 5 per cent, oil' for cash received. 27. Petty casli sales to date per P,t*.U, 8! 10. i'aiil ^va^'es in full to date in casli 8135, also Wm. Wil.-on .^''5 on aceount. (Close the Cash Hook.) 29, Sold John Kearney on aeeonnt. 12 do/., l.nlies' line hose y 80 ; 10 doz. colored .silk iio.se ([( 8-4; 2n do/,, eliildivn s cotton hose (" 84, " IJonght of John f5iiie, hill (d' ^nnds iier invoice dated 2r)th inst., ammmtin^' to 82i{4.50. Paid c :i>h for same. heiiiLr allowed 5 per cent, di.sconnt. :iO. Keceivt'd of Joiiii Kturney hi- siiilit draft on John iJavis f(U- 815. and check on City liank tiir halanee of hill of 2nd inst. " Tram-ferrcd tn John Davis on account, J ihii Iv'jirney's draft on him. , 30. Deposited in College IJank, .lohn Iveariuy's clieek on City Bank, and cash 8500, " Sold. S.Sims, 1 Melton overcoat, 810. (C.O.I).) " Bought of James IlaMane, Ikjusc and lot No. 24, Taylor Street, for $5000, which we purpose occujiying as a store and dwelling, (lave in payiaent our check on College Bank for 82000, and a mortgage jiayable in 3 annual instalments of 81000 ench at 7 per cent, interest, " One montji's salary of 875 is due this day to Wm. Wilson. " Paid V iiges to date in cash 884,00. Ilee'd, of S, Sim.s, §19, which is included in tin pettv cash sales to date per P.C.B, 8115, L [•,5<': I 75 BAY BOOK MONTTJKAL, NOV. 1, 1S88. L.F. H'2 82 S2 82 82 82 8:} h:! 82 HLtToltlC. Cr. It'ftllS. l.'idO '. i 'tor Hiiio. % Cell invfsh'(l " di'iMisited ill ( ' 41i'i^o li.iiik iStock ot'clotliJ*. triimiiiim':^, and ready iiiiido fldtliiiiM', |ii r [iivt. 87il| .')() Stiipf l''ixtiiii's viiliii il (n) [')ii I Jill l{(;c. (Ill IiiiimI ]kt IJill Hook iCi.'M I'lTsiinal ' ,., iVL' iviiljlr I 824 TotttlH. I<) iMTo IJii.-ior Hiiio, Til Hills Pay. iiiitstaiiiliiii ]i r IJ.l!. Pergonal " ,., payaMc l)it. Ci.ll.-v 15a, ik, III Ami. (Ill dijiii-it 1)11. Jolin K(!ariH'V. Liiki' ,1. K^Mii, llfiiry li i\vl(ir, T(j Amt.-. due III L. (iarcau i\: < 'o., J. \V. Ilanv id, Dr ■till' 1)1111' ('II 170(1 7I7:j 824 Cr.* Hy Anil-. (i\viii_ ilhiii Ijy i[ectiir l)ui(> n\\ ";,,^ • Idhii Ki'Mi'iuy, T(i 1 151k. Hrnadcluth Coat 1 Do Vest 1 [.r. 1 •oL'.-kiii Pants Dr. .._ 4 _.- 82 I [leiiry Lawlor, liy Cash on "/ Cu. 7173 2') 8S7:J IJ'jOO 2.^4 19;^ 2.')()(l 4(173 25 35 I 6 ! 8 50 I 49 145 25 25 t elass hni.k- keepei-s III oinil. the winds " Dr. " luid " I'r. " and de|ieMd mi tin,' unids "Tii'" .•uid " l!y " fur di.-linetioii, whilo others omit tlie " To " and •' liy " and depend on llie works "J)r." and "li oil " Cr. Will. Aiiislii', To I do/.. I'iiio Sliirts J; '• li. \V. Undirsliirts 5 prs. Flaiiiiol Jh-a\vti's 10 •• Socks I)R ® 815 1.50 30 12 Ilonry Lawlor. _ <^;« J}y his iioto at GO (lays, pay. at (.ity Hank lor Iwl. of his Vu \:> S. .liindmrn, Plattsbuv-;, N.Y., To 1 Weihlin;;- Suit 1 Overcoat U doz. Hdkts. Dr. ©84 Contra, * liv cash on "/c 1G Cr Dr L. (lareau & Co., To Chk. on College Iknk Our note at 3 uios. pay. at <>oi. 15k. tor bal. of"/o 24 I 4 3 058 100 50 50 39 45 25 G 200 500 2G58 7G 50 3158 * TlU! (ling Dr. i;-r]7.i7^;;i^7;;^toiin^ ""^ualnst, ■• and thi. Cr. is tVbe entered in .Ian.lro.i..-s aocl. against tl.o prcce- Th-rc is no ml?un wl.y 1.1s i.a.ue .sl.ouKl not be usi-l iimtcad of (J. .ntra. 77 rece- MUNTUKAh, NOV. hi, ls>sH. 82 J5y Clik. fiiv. nf L. (;;,n:ni iV f 'o. Ott. til 8:5 8:{ 82 81} 8:{ 84 Mi'Cniuly Hros.. Tip .")(» 1%M ()V01fliat> :ir).io/.. ('uiiiir> (Asstd.) 1)11. i t; 8^J :!0<) " ^ 1(10 Coiitrii, (*H.t By iliuir df't. at :>0 Js. ,«i;4lit;l.()0. 1 Sasli !H!f. 1 pr. llo.M' (loc. Yarn \'h\ 1 t^uit 151k. Hroadcloth (for srlf j 1 pr. Jlairliuo Pants Binding coat and vest, and buttons J)B Jolin Davis, Windsor, Ont., C«. \]y Bill of goods per inv. of 21st hist., auitg. to 70 7") (J 1 40 S 1 1198 1 2000 1000 72 50 1«7 ; 50 50 * HO 80 5U 58 G42 t Alllioiii'li it is not iioeessary to niul<(> tlipso entries it may be dcsirabli! to iircscrvo ii record of tlie transac- tion but as tncro is n<> personal imlubtedness it is not necessary to post tbeni. TUe cUeoli nuuk ( v ) is substitu- ted for tiic" ledger pape. and indicates " not posted. " 78 it^t^ MONTllHAL NOV. 24, 1B88. QA Jdlin Davis, Tu Clik. on College Bank tor Du P4 S4 82 C"olle!iy Itook ^va^< posted, the outry may be markcil 79 LILL nOOIvS. TlnTO iirr iiKiiiy tnrm- ami styles ul' liL'iiiliiii:'s tnr Hill IJnnks. ^omo are >pociiilly con Vi'iiient fui iiiites (SCO ti inns mi pa^cs 4:i ami lij ), wiiile dtlicrs arc best ailapted for ilrafls; but tlio forms on panics (10 anil (il are tlic most cnnvcniont liir Imtli. The I'olluw- ing simple forms are yi\fn merely to exliiliit variety of style. BILLS lli;( LIVAIVLK. No. Date. 1«88.' ' 'f inie. When due. Payer. l'a\ee. Aint. Wlieii and jiow di-po>ei! of. 18881 1S>58 1 Oct. 12 1 nio. Xov l.J .1. )». Morin 1!. Lalinie 1000 Xov. a5 CashMni..sl.li7 ') " 28 tJO lls.^t. l)e<'. l.S.S'J ;!0 (). iMuhe-iiy Wn,. Fanvll n:u 7o " •1 Xov. 12 (iO (l,s. Jan. 1SS8 14 11 y. l.a'.vi^ir I lector IJuie 200 Xov. 18 Cash less $2..j;i 4 '• 19 nods. St. Deo. 22 llich. Kearn.- McCready l!r 452 .50 BILLS PAYAliLK. Nu. Date. Time. When dne. I'ayer. Payee. Anit. Wh, n ind ilow redeeliiei.l. USH8. 1 8Si8 ■ 1888. 1 Sept. 8 2 ni..s. X,,v 1! lleet-r Rule .h.lm P.nie 1)10 1,-. Xov. 11 Ta-h 2 Oct. .'SO 1)0 ds.st. IKe. 1 18^'J Do Wni. Midland 7s:J5o 3 Nov. k; .'5 niiis. l\h. 10 ]hj I L. (lareaiuV-(V). 2(io8^ 1 4 " 20 90 .Is. " 21 Do ■1. W. Uarwoi .,! 1000 1 ('.\Sll BOOK. The followinti' simple form of Cash Hook is sometimes used in Siny,le l']ntry. l^nliku all precedin'.;' Cash !5ook.s the words '• Iteeeived " and " Paid " are fre(jnently nsed. Tiio credits are commenei'd a little farther to the riLiiit than the di'bits. The form on the lU'Xt p;iu;es is, lio\ve\er, preferable. CASH. 1888. Nov. Dr. Investment loOO Sold ") pe~. Can. Tweed, 2;!0 yd^. at .'idei- ' 11;'. I'ec. ol Hen IV i;a\vlor, on acet II.") ];ot, fX. P. n. Siiow Ca-,, 12 It I'uid Drii\a>ji' oil (iarcan's Inv ; IVtty casii sales to dale 8;i I'aid uaiiis in tiill to date IJill, ell luni'l ■ iH4:i ik; 21 1 !);! 80 1 172,-i 10 ik; 18 1;? 96 80 II < Dn. 1888. Kov. CASH. 1 iiivistiiuMit y""/yn"V 3 Sola r. i>cs. Cu... Twcc.l, 23U ya^. at oO c-t> 4 1 llcinv Lawlor. mi ' •■ i; ' IVttV subs t.) dato, prr I'. C.b l!:il:iiu'o lircniiiht tlnwu I Luke J. JvLian, on Vc- ■•■••• 13 1 IV'tty sjiU's to date, pur l\ C. B. 15 liiil. ttrot. down •' I S. .landivuu, on ucot. 17 Sold J. Murtiniaii, 1 linr SuitpLT ordor.. IS < Ik-ory liuwlor's note oi'12 iiist. ' ' Li'>s disc. 7^7 days at 8 ,.' 20 Tottv salt's to date, per 1*. <'. B 1500 115 145 83 06 1843 I DC) 1725 100 9G 1921 IG S-.iOO.00 2.53 79 50 38 197 104 oo ~Bal. brot. down ot \ J. B. Morin's note of Oct. 12tli, due 15th inst §1,000.00 Int. on same for 10 days, at (J Z '^•'''^ l oa I Sold James Cooper, 1 Suit fine Broadclotli §45.00 " 1 •• Canadian Tweed 22.00 5 ^\ (iff for cash 2 71 Petty sales this day, per P. C. B 469 337 1001 90 50 47 1 93 43 67 .>() iial. brot. down 3(j Jolm Ki arney's chk. on City I'ank Petty sales to date, per 1'. C. 1> 81 cAsir Oil i(> 9G 50 93 67 G5 _75 75 50 25 ' 1888. Nov. 10 11 13 But. 1 Nickd \\ (JIiv^.s Sliuw (Jasc. 12 fcot loii-. 1)1 ay me (11 1 ]j. (iai'L'au & Co. Tiiv. Wa-e es III tiill tn ilate. Jinl. OH hiind. 1 iiioiilli'.- Kent (it'ritorc iVoiii l>t iiii^t Our imtc of Sept. 8, I'avor .Inhii Hiiio Bot. .") jics. Fiviich I5n.aik'l 1 •>(. 50 ;}:!7 43 4iiy 93 10 135 15 1352 75 1512 75 222 77 534 5il S4 0(1 000 i 38 1502 25 82 HECTOR BUIB. jl 1S«8 I I 25' N'iv. 1 I liivcr-tnii'Dt. 75,1()G73 25 COLLEGE HANK. 78! " I; 1888 35001 i Nov. 5:m' 50 KiL. ("iillrilU i^C Co. 20;. I. W. llillWood. 24'.)olin Davis. :U).J;is. ILilJano. i)jo. 1S88 Nov. P.al. 4o:u! 50 I " 2n2r5oi| JUIIN KHAUNHV 77 5001 •• 1000' 78 242, '• 2000: . 292; 50 40341 53 li Aiut. orutcl. ! 7a 2t> Do 78 284 4!> 3il2 1 Zi) 50 1888 .Nov. 1 30 SuikIs, Hal. 78 8< 4!i (]7(i (j:o 50 37 87 \)i^r ir^^i- G7(3l 37 i I il ]JJKE .1. KG AN. 1888 2s uv. i)ec. Aint. ol'acot. *•» 103 :;1888 G7,!.N'ov. 1931 G7il 8 30 Ca>li. Bal 7G'| 100 93 193 G7 67 1 Bal. 93 G7 J IIENIIY LAWLOK. 1888 Nov. i 1 Anil, ol auct. 75 345^ 91, I 345: 9 1888 I I Nov. I 4 Ca>li. i 121 Do 75 145 96 7G 200 345 96 i i' 8S 1888 ! Nov. 20 SuikIs. 30 Bal L. GAU1..^U & CO. 1888 Nov. If. Suiids. 7(5 3158 i 11888' Nov. 1 i 1 G Duo tlieui on acct. Milse. 75 7(: 2500 (158 ■5158 - i ;ji5s J. W. HAllWOOD. 77 2000 3871 5871 117 1888 Nov. 20 Due liiiii oil acct Mdse. Dee. !i 1' 1 IJal. 75' 40731 25 77 ll'JSl 72 !^ 5 871 1 97 387r 97 WM AINSLIE. 1888 Nov. 1 9' M.lse. 23 Do. 76 77 39 58 jil888 liNov. 20|! 20:1 30 B:.l. ( i 97 20 97 1 97 20 Dec. 1 Hal. 1 97 t 1 1 20 >S. JAN DUE AU, Plattsburg, N.Y. 1888 Nov. 15 Mdse. 7G:: 7(1 i 7G ,1888 iNov. Il 1 ! i 15 30 Cash. Bal. Bal. Dee. n j 2G j 76: 50 26 76! 1888 Nov. 30 Bal. J. W. RO."^S, 2G Riclimond Square. Mdse. 187 11888 50 Nov. 9.9. 77i 187 50 i 1 Dec. 1 Bal. 187 50 84 JOHN DAVIS, Windsor, Ontario. 1888 Nov. 24 30 Clik. Col. Bk. Ki'iirncy's dft. Bal. 1 OA>> 1 — ^ — IS88 Nov. 1 24 15 ; 1 385 642 1 Dee. 1 771 642 (.'42 Bal. WM. WII/iON, Bookkeeper, 81 .Alanco St. 385: 1S,S8 Nov. 24 27 30 (Vli. Do. Bal. i 1888 78' 10 Nov. 30 "1 15 50 75 Dec. After tlie Day Book lias been posted to tlic Lcdy r, close all the accounts except tlie Stock (or piirttiers). and bring down the balances as shown in the fbrciioinu: model. Then proceed in the followini: order to a-certain the net gain or loss : — 1. From the ledger take tlic bai.Mices of all the jier-onal accounts receivable and pjiyable, and arrange them as follows : — Schedule A. Schedule B. Personal Accounts Receivable. i 1 j Personal Accounts Pi lyable. .bilin Kearney Luke .1. Kgan Wm. Ainslie S. Jandreau 676 !I3 07 26 37 67| 20 J. W. Ross i John Davis ' VVni. Wilson, bookkeeper J. VV. Harwood 1 187 385 50 3871 50 97 893 24;| i 4494 47 2. From the Bill Books collect Schedule U. all un paid 1 jills receivable an 1 payable a Sehe lulc D. s follows i; Bills Receivable. 50 1 Bills Payable. Payer, (). Duchesny Kich. IviarnH i 634 452 Payee, Wm. Midland L. Gareau i^ ("o. J, W. liar wood 783 2658 1000 55 1 1087 4441 55 50 97 47 85 IJ. Tl.e value of the ^Idsc, lUal Estate, and Fixtures arc found l.y •' inventory" and oxpliiined in X"te on paj^e 5. , . ^ 4 Tl.e au.ount of the iu<.rtoaj;e is not iiic-ly to bo fo.-otten, .ud Us cxaet an.oun and the interest dne thereon c.n be found by referring- to the eopy of the n.orti^aue and vouchers for pavn.ents in our possession. They shouhl be fastc.ied to^^eti^er and be aecon.panied hv a n.en>o. in the form of a,, account, showin,; the auK.unt ot .he n.ortj,^.ge and the interest (as it becomes due) on one side and the payments on the other It wd , however, h. found n.ore convenient to open ledger accounts (as in Double Entry) lor o.ch Mortgage Payable with its payee, and each Mortgage lleceival^lc with .ts payer, thus:- MORTGA(iE PAY.— James Ilaldane, payee. -MOKTGAGK EEC— 11. 0. Clark, paycr.- Mortgages payable and receivable are very similar in their natures to bills payable and receivable. , , , , i i 5 After obtaining all the resources and liabilities, they should be arranged as shown in the following .staten.'cnt. Use only the totals of the Schedules, so that the condition o the business will be presented iti such a condc.sed form that its general features and results can be seen at a glance. STATEMENT OF ]IECTOU lUJlE'S 1U<:S0UKCES AND LIABILITIES. Takkn Nov. 30, 1888. -RKSOURCES.- Mdsc, per invt. Real I'^state " '• Store Fixtures " " Cash on hand '" Bahince on deposit in ('ollege Bank Peisonal accitunts receivable per Schedule A. Bills •eceivable on hand '' '' C. 11971 ■ 5000 474 GOO 292 89;{ 1087 -MAIULITIES. 44i 3S 50 24 25 2037S Personal accounts payable per Schedule B. Bills payable outstanding " " I>. Mortgage payable on real estate Present worth Net investment Net iiain 4494 4441 3000 47; 55 119;5() 81 (12 8442 7800 642 79 79 55 T1.0 alH.vc not ,aiu (8r..l2.79) is now to be on.oro.l on the credit of the proprietor s aeeount, whieh slua.lJ then be ruled and the balanee brnu.ht down. Ihus e-n.p tes W vear's business by .in.le entry, and leave. tl,e ledger h. proper eondmon or .he n xt year; but i. it is desired to keep the next year's books by double entry, the ledger nmstbc prepared to receive it by the following: — lUI.K lOIl CUANdlN.i Sl.Ndl.K KNTRY INTO DOCRLK KNTllV.'-i^ 1 L)u not dl&tarh nay "/' tlu- nrroiutts alr.aJij In thr Inhjcr. ^ 2.' O^xn such additional acronnt. as are necessary to show the enure resources ami '"'^' To'ehangc tlie sin.le entry led^or of the pre.'eding set into double entry, the Ibllowh.g are the additional accounts re.,uived, and they are taken from the last ^taten.ent ol 1'u.sou.crs and Liabilities. When tl.'y arc opened the ledger is a complete double ent.y (iiic, and should give a Trial Balance. I>ec. To Balance GGO Cash. 38' I Merchandise. Dec. Dec. 1 To Balance ■11971 44 1 ' To Balance Dec. 1 To Balance Store Fixtures 474 Bills llcceivable. 1087 25|i Real l-lstate. 24 Tayhn- Street, City Dec 1 Tu Amount. James Haldane__ 5000, ! I ' Mortgage I'ay I Dec. I _Payee_ 1 ]}y Amount. 3000 Biils Payable. Dec. i 1 By Balance. !l 4441 5.) oul>' the proprictoi's au.l piTsouiil accciuiils. S7 .SECOND SINCiLIO KNTUY SET. Tlie o})joct (if this set is to ^uive tlu- ^tudfiit pnictiw in ajiiilyiiii;' tlic priiieijik's of siiiglt! iiitry. A gi't'iilur variuly of traiisiictioiis is iiroscjiiteil tiiaii woiijil Im atfurdcd by the urdiuary routine of a retail business, to which purpose mv^h entry is usually cou- fincd. GENEllAL UEMAllKS. The chief Imoks arc krpt in thf nffitt' where all payments on account are made and received by the bookkeejier. Tiie cash payments on account may be entered when received ill the cash book and Jedi." *\ «>T tliey may be entered in the e;ish book and day book, and be po.-led iVnm the latter, or the\ may be entered only in the day bdok as tlicy occur, and the total traii>l'erred to the cash book al iiii^dit. BtiOTTKUS. — All orders received fir Lroods tn be delivered by us uro cnteToJ in the Blotter, which is a rough memorandum b(jok kept ))y tin; sulesun m on the enunter where the customors arc served. Sometimes each salesman carries his own book. The form of entry is similar to that of the day book. It is customary to ha', e two sets of Blotters which are u-ed on alternate days. While one set is being used by the salesmen the other is in the ofKnie being copied into the day book. Only the sales on account are copied into the day book, from wliich tlwy are posted to the customers' accounts. The orders for which payment has been reeeivt-d are marked " paid " by the salesmen, and are not to be copied or post d as their amounts are included in the cash sales. Cash Hales. — In retail stores the cash sales arc small and numerous. In sonie tlic money is put into the cash drawer in the counter at which the customers are served, and the amount found therein at night is the cash sales for the day and is then entered in the cash book. A memorandum should be kept of uioney taken out during the day, or tickets with the amounts written on them may bo put into the drawer to be counted as cash in finding the cash sales. Cash-keeper. — lu larger establishments a cash-keeper is employed. He generally occupies an enclosed desk in the store, and all cash received for sales is delivered to him. Every night he hands the amount over to the bookkeeper, by whom it is entered in the cash book. The cash-keeper is usually required to keep a record of the cash sales. For this pur- pose he is furnished with a book ruled in columns, which arc numbered to correspond with numbers given to the salesmen by which they arc known. Each salesman is supplied with a "Salesman's Check J3ook," and when he makes a cash sale lie writes the amount on the stub, ami his luinibcr and amount on the check. The cash and cheek are then given to the jash-keeper, ami lie enters the amount in the sale.-man's column. The footing of each salesman's column must agree with the total of the stubs in his cheek bonk. Tiicy should be compared by the book-keeper, and in case of discrepancy the cash-keeper is rcfjuired to produce the checks from which he made his entries. It is frcfjuently ueces,sary to use some of the cash before night, in which case the book-keeper should give the cash- keeper a receipt for the amount, and at night the balance of the cash and the receipt arc liamlod over as tlu'cash sales. This sulijct-t will be more fully illustrated in connection with a retail grocury set by dduble entry, which will be given in the Seeond Part of tins 3Ianual, now in course ol' ipre])aniti»n. MKMtiUANDA (IF TUANSACTIONS. The following chief books are to be used ami kept by single entry : Day Book, from which all im^ting to the fA'^iger is to be done, Cash Hook, Bill Book, Bank Cluck Book, and Commission S iles Jiook. When a cheek book is used a bank account in the ledger is ne,t necessary. There slioiild be the same difi'erence in the form of entry between a single and ihmlile entry S;des l>ook as there is between'a single and double entry Cash Book. .AroNTRKAr,, Dee. 1, 188S. ]I<;ctor J5aie has this ilay admitted Wm. Wilson, his lute book-keeper, as partner in the business, which is bereal'ter to lie enndueled under the firm name oi' Buie & Wil.son. The partners are tk ;")() niciiV libiikc t siiit> at $7.50 ; 7r> lioys" ditto at s4 ; li') njuii'.s dittti at !i?3. Deposited in (.'ollc,!;e liank iMsli, SLIOO. Accepted .1. ('. Simpson's draft on iis at 'M days sinlit I'or lialaiicc ofuceomit. 3 — Sold Win. Aiislie on accunnt. 1 twciMl suit I'of son .lames §'.). " Putty easli sales this day per cash in drawer S'22i). " Paid workmen's waLies to date in easli .s22ri.-'- " Paid Jleetor ]{uic cash ijir), and Wni. \\'ilson §10 on weekly salary duo this day per agreement. f (Close tlie Cash Hook.) 5. — Paid cash Cor removing Hector l?ui( slioiiseliold furniture.? 10, al.so store fixtures unr>. " Sold iJas. Cooper iV Co., on account, \'2 do/., kid '.doves, end)roidered hacks, at $6; 1 doz. .silk umbrellas at .■^24; '.i },'euts' dressing' gowns at 810; 2 doz. .ashmere mufflers at .Si3 ; lA doz. wolk'n ditto at 80. 6. — Bot. at 40 cents on the dollar J{. Taylors liankrupt stock, consisting of ready- made clothing, Iteavers, ]nlots, meltons, tweed and worsted coatings ; assorted naps, etoffes and flannels; Cardignu jackets, jerseys, shirts and drawers; assorted hosiery, gloves and mitts ; assorted braces, handkercliieis, etc., amounting per inventory to 8l'S00. (iave in payment cash for one-half, and note at 3 months favor of James .Stewart for halance, " Received of Luke J. Egan cash iu full of account. 7. — Sold John Kearney on account, 4 Hohinson's new detachable plucked otter collars and cuffs, men's size, at .'?2.") ; 4 ditto, boys' .size, at -$].') ; 1 doz. 4-ply tuques at 89. CO ; 15 doz. assorted 4-iily linen collars at iirl.lO. " Deposited cash !?100. Paid cash for postage stamps ,S1..")0. 8. — Sold Luke J. Egan, 50 boy;)' mixed tweed suits at $2.50 ; 50 ditto overcoats at 82; 50 boys' fine tweed suiis at )?3; 50 ditto overcoats at 82.75; 50 boys' dress suits at 84; 50 loy's diagonal suits at 85.50 ; 25 boys' jiilnt overcoats nt 87; 25 boys' blue nap pea-jackets at 84.75 ; 12 men's melton overcoats at 812. Received in payment 8 shares College Bank stock at 8 percent, prem. ; His note at 30 days for .'^2.j0 ; ,S. Small's accept ince of 18th ult. ;*t 30 days siglit for 8250 ; lialance on account. " Drew draft payable at College Bank, on John Kearney for .S400 at 11 days sight, which he accepts this day. lie also pays us cash on account 850. We give the draft to J. W. Harwood on account. •When omployofis arc piiid in full at regular intorv.ilrt tlioro is no ueopssily lo npcii an ai'coiiiit witli each ; but if not paid in Cull, or if Ihe timi! of p.-iynient be? irrcfiular, caoli parly should In' cri'fliti'd with the amount of his wages and didiitcd for amounts paid liiin. This may he done in the! regular hvlger, or in a small one kept for that purpose. t As the partners draw salaries tliey are really omplayees of the linsiiiess, and as tile transaeiions with them will be quite numerous the detail.s would till up tlu'ir Btoek aceounts, which fliould 1)L' reserved to show the net capitals. It is, theroforo, advisable toopun other accounts with them, thus : " lli:c lou BuiK, I'riralc." Those private accounts contain tlie current transactions with the partners during the your, and their balances are usually carried to tUo partQcrs' stock accounts at closing. rMAGE EVALUATION TEST TARGET (MT-3) '^^ V] /: •^fci- ™ ^ ^'*^ y /^ i.O I.I •so *'^" II^H E lis ■" 2.0 IL25 i 1.4 Sdences Corporaiion i JA 1.6 <^.^' 23 WEST MAIN STREET WEBSTER, N.Y. )4SS0 (716) 872-4503 ^ ^F I 90 m m w 9. — Bot. of J. W. Iloss, 3G men's German seal caps at S3. 50 ; 96 men's Persian lamb caps at ?5 ; 30 ditto peaks at 85.15 ; 60 ditto wedge at St; 1-4 boy.s' Astraohan caps at 82 ; Gave liim on account, 1 beaver overcoat .?18 ; 1 tweed suit 815 ; 1 Curdiuan jacket 8-1-50. " Sold S. Jandreau on account, 1 tweed suit 818; fine dressed .shirts at 81.50. *' lleceivcd from M. E. 0'Bri<'ii, to be sold on his account and ri.sk, 1 case, £5 pairs white blankets invoiced at $1 ; 2 cases, 24 I- 26 pait-s grey ditto at $3 ; Paid freight 8-4, and cartage $1.50 on above in cash. 10. — Received from Jol-.n Davis an account sales of goods shipped him on the 2nd inst., to be sold on our account and risk. Our net proceeds amounting to 8875 have been placed to our credit. " Paid John Lewis, clerk, cash (from drawer) on account 820. " Petty cash sales this day per cash in dniwcr §230, and ticket for money taken out 820-=8250. " Paid workmen's wages to date in cash 8125. 10, — Paid Hector Buic cash 815 ; also Wm. Wilson 810 on account of salary. (Close Cash Book.) 12. — Bot. of M. E. O'Brien, 1 case, 25 pairs costume blankets at 83.10; 1 case, 26 pairs ditto at .§2.75 ; 1 case, 29 pairs ditto at 81.50. Gave him on account, Luke J. Egan's note of 8tli inst. " Drew draft on John Davis at GO days fiom date for balance of account, and sent same for acceptance. 13. — Received of S. Jandreau, a post office money order for 825. " Deposited cash 8100. " Sold P. R. Spencer, 12 pairs white blankets at 85.75; 16 pairs grey ditto at §4C'). (O'Brien's Const.), and received in full a check on Merchants Bank payable at Toronto. College Bank takes check on deposit less \% for collection. " Shipped Clarke Wright, Kingston, Out., to be sold on our account and risk, 1 case Beaver, 2 pieces, 52 yds. each, invoiced at 83; 1 ca.se Meltons, 2 pieces, 52 yds. each at S2 ; 1 case IMlots, 2 pieces, 51 yds. each, at §3.25 ; 1 c::so Irish PVieze, 4 pieces, 25 yds. each at $2. Paid cash for casing, packing and cartige on same 83.50. 14. — Bot. of J. W. Harwood, bill of goods per invoice, dated 10th inst., amounting to .^725.60. Gave liiui on account our note at 60 days from this date for 81,000 ; Clieck on College Bank f.ir 8,-00. " Received cash for semi-annual dividend at 4 per cent, on College Bank Stock held by us. 15. — Gave J, W. Ross on account S. Small's acceptance (received on 8th inst.) less discount dny.s at 8"/. " Gave J. Tasker on account, 9 shares College Bank stock at 14% prem. 16. — Sold Hector Barbeau, on account, 10 inen"s colored blanket suits at $8; 15 boys' ditto at 84 ; 18 pairs lined kid mitts at 81.15 ; 18 pairs lined kid gloves at 81.20 ; 5 pairs lined real buck gloves at 81.25. Received of Clarke Wright an advance of 8800 cash on the shipment to him, Deposited cash $700, im n 17.— Received from John Davis, our dft. of 12th inst., bearing accoptaneo of 15th inst. " Sold Lulce J. Euian. on account, l.'{ pairs white blankets at 86; 34 pairs grey ditto at 81.50. (O'Brien's Const.) " Gave John Lewis, clerk, on account, 1 pair lined fur top kid mitts at 81.75, 1 Korti .scarf 81 ; and cash (from drawer) 840, " Cash sales this day per cash in drawer 8233, and ticket for money taken out $ = 8 . " Paid workmen's wages to date in cnsh .«!150 ; Also Hector Buie and Wui. Wilson $13 each on account of weekly salnry. (Close Cash Book.) 19.— Transferred to J, W. Ilurwood, Jolm Davis's acceptance less discount days, at 8%. " Paid Tees & Co., per check for repairing and placing old fixtures $40, anJ for oflBce furniture and new fi.\tures 8750. " Drew draft at 30 days after date on J. P. Ross for amount of account, favor of Edward Evans, and gave it to him, less discount, at 8;^, receiving casl- ^ r balance of account to date. 20. — Closed O'Brien's Const, and sent liim an account sales to date. Our commission is 5% on sales 8 . His net proceeds are 8 which we hold subject to orders. 21. — H. Harvey presents for payment a note for .^150, made by the late D. W Wilson, which was not included in the liabilities assumed by this business for Wm, Wilson. AW' pay the note per check, and he agrees to draw only §10 a week until the amount is cancelled. " Received notice of protot for noi.-payniciit of S. .Small's acceptance (8th inst.) prote.'*t fees,'j;1.53. We pay draft and fees in cash. (We lonii to the party from whom it was received for payment.) Received of Richard Kearns his accepted check payable at College Bank, here, for .$300 in part payment of his acceptance of 19th ult. due this day, and his note at 30 days endorsed by .McCready Bros., for balance. Deposited above check in College Bank. -John Kearney re(juests us to take up (pay) his acceptance of 8th inst., and to draw on him at 3 days sight for the amount. We retire the acceptance per check, and draw draft. Left above draft at College Bank for collection. -Received from M. K. O'Brien, to be solJ on his account and risk (?.m\ Const.), 100 as.sorted Persian lamb caps at .?3 ; 150 assorted otter band, seal top caps at .i?4. Paid freight and drayage on same in cash 1^5. -Sold Wm. Cullen, on his note at 2 mouths, 50 assorted Peisi.in hnnb caps at 84.50 ; 80 assorted otter band, se.il top caps, at .$5.25. (O'B's. 2ud Const.) Paid John Lewis, clerk, on account, cadi (from drawer) .$20. Paid workmen's wages to date in cash .$105. Paid Hector Buie cash (from drawer) in full for .salary to date; also Wm. Wilson $10 from drawer. Cash sales this day per cash in drawer 8245, and tickets amounting to $ =; $ . (Close Cash Book.) 22.— (I 23. 24. (I (( 92 26. — Received of Edward Evans a notice of protest for non-acceptance of our draft on J. P. Ross, protest foes $2.54. Ev.iiis consents to hold the draft till maturity* 27. — Sold John Kearney 25 .-issortiMl Persian l:imb caps iitS4.75; 20 assorted otter band, seal top, caps at .s5.25 (O'Brien's 2nd Const.), and received of him on account 1 bale English blankets, 30 riirs at .^5.50; 1 b;de ditto, 50 pairs at 83.50 ; and a cheek on City Bank for 8400 which we deposit. " Received of Luke .T. Egan cash on account !?300. 28. — Accepted M. E. O'Brien's draft on us, favor of 1'. Halpin, at 30 days sight for 8250. " The College Bank notifies us that our draft on John Kearney due this day has been paid, and placed to our credit. 2f). — Compromised witli Jas. Coopi-r & Co., at 00% of account, which they pay in cash 8^8.60, and check on Bank of Montreal for 8 . " Deposited above check, and cash 8500. 30. — We accept 8430 cash as a settlement of Hector Barbeau's account in full tc date. " ij;e accordiiii.' to tlie rule on page 8G, and should then give a tria balance. Coinuience by niiiking a double entry day book, which when journalized would pro- duce the following entries. The student may use any details of goods he wishes. (For instructions regarding Ibrm and substance of day book see page 32.) Montreal, Jan. 2, 1889. John Kearney, To Mdse., Bills Pay., College Hank, To Mdse., favor Michaud, — 3 Mdse., To J. Tasker, - 1 J. C. Simpson, To Bills ray., 30th ult., Bills llec, Cash, To. O'B., 2nd Const., O'B., 2ud Coi'st., To Commission. " M. K. O'Brien, 5 por cent., John Lewis, To Cash, Expense, To J lector Buie, " Wm. Wilson. Hector Buie, Wm. Wilson, To Casli, 150 15 10 50 1360 266 ; 425 10 25 25 •XhoBlmpIe form of double entry by whl«b each ealo is creUited separately to the mdse. acct. is not applicable in the retail business. 94 Montreal, Jan. C, 1889. Cash, To Mdsc. cash sales, - G \Va''"s. woikuii'ii, To Cash, - 8 Clarke Wright, To Shipt. to Kingston a Bills JJoc. 30 days sight. To Clarke Wright, Hal. of acct.. Jiilis Pay., C;ish, To :Mase., " Interest, (^ish, To Luke .1. Egan, " S. Jaiidreau, 10 Given Nov. 20, 7 per cent.. 11 Bal. of acct., Do Shipt. to Windsor, No. 2, To Md.se., " Cash, J. W.-Ross, J. W. Harwood, To Cash, — 13 John Lewis, To Cash, Expense, To Hector Buie, " Wni. Wilson, 285 180 1200 ICOO 200 400 1800 7 20 25 25 95 Htctor Buio, Will. Wilson, To Oiisli, To ^Wsc, Wages, To Cash, MoNTUEAr-, Jan. 13, 1889.] 15 O'Brion's 3rd Const., To CasV., ic. C^.sli, Lo.ss and Onin, To S. Perreiiult & Co., $1000, 25 piT font , Jkl. of ticct., 15 10 800 200 25 Oolli!j;o Bank, Interest To Bills Rec. 7 per cent., 9th iiist., 18 Bills Pay., Interest, Cash, To Mdse., favo- T. Ford, 7 per cent, fioui 24 ult.. 19 Bills l>ay., IStli »""• -'''^'' "''•' To Colle^re B;tnk, Expense, To Hector Buie, " Wm. Wilson, Hector Buie, Wui. Wilson, To Cash, 20 10 5 GOO 25 25 CaKh, To Mdse., 325 t 96 Montreal, Jan. 20, 1889. Wages, To Cash, oa Casli, Bills Roc, To O'B., 3id Const., Cash. To Bills Kec, '23 H. Kcarn's note, 24 Cash, To Collcirc Bank, — 25 Casl tVj. E. Mannin.' & Co., i» fu" of ac^t., J. W. Ros«, To Bills Pay., " Cash in full of acct., 400 — 20 John Davis, To Ship^ Windsor No. 2, Expense, To .lohn Lewis " Hector Buic " Wni. Wilson one month's salary, " week's " John Lewis Heetor Buie Wui. Wilson To Cash, from drawer, It Cash To Mdse. in drawer $.310 and Tickets $... Wagos, To Cash, (Close this acct. to Mdse when closing the ledger) 20 20 10 198 900 300 700 1700 265 f 97 f Montreal, Jan. 27 1889. Bills Pay., Cash, To O'B., 3nl Const., lavor E. J. ColU»^<, 211 Bills Pay., To Cash, favor J. Cameron, O'B. 3nl CoiLst., To Couiniissi.in 5 jut cent., " M.E. OBiicn, 31 Bills Pay., To College Bank, favor P. llalpiu, INVENTORIES. MJse. on lianl 817,890.90 Real Estate 4500.00 Fixtures ami Furniture 1140.00 College Bank StoeU, 5 per cent. Jiscoiint Wajies due Workmen I'roni 2Sth iiist 190.00 " " John liewis " •' " " " llietor Buie" " " «' '• Wm. Wilson" " " 1)8 UKVIKW QL'KSTIONS. 432. WImt. is .siiiulc (f.try ? I'M. What ftiv its |)rinci|):il ni what (li>es donhle entry derive its name ? 441. Kxji' m two inethocisoI'lindinL; the net loss nr gain. 442. Which method is used in double ciitr^ . 443. Wliiuh in sinj;lo entry ? 444. If the net capital, or insoKcncy at the bej-iiniinj; and einl of the year is known, when i.s subtraction used in findiiig the net lo-is nr^ain? 445. Wiien is addition used? 440. What operation is nccc8s;iry for the purpose of lindinj^ the net gain or loss in sin.de entry ? 447. What is the object of finding it ? 448. IIow could the Cash, Mdsc, and Bills Rec. be ascertained without bookkeeping? 441*. Why could not the Hills Pay. and personal imlebtedness bo found in the same manner? 450. In what booUs aro the transactions producing personal indebtedness entered ? 451. lIow is the amount of personal account'' receivable found ? 452. How personal accounts payable? 453. Why should tlie JJill Hooks be used ? 454. IIow could the balance on deposit be found if t\o Bank account had been kept in the Icdirer ? 455. What kind of accdunts does a single entry ledger contain ? 45(]. How could a double entry bookkeeper find from his work the correct debits and credits required in a single entry ? 457. Would there be any difTerence in names or amounts? 45S, What has be to learn ? 450. From what book is the posting usually done? 460. What is entered in a P. ('. B? 4til. IIow are the entries made from it into the C B. ? 402. What does its b;ila!ice .show ? 403. What the Balance of the C B? 4(i4. "When is it unnecessary to post a day book entry? 405. After the posting is completed, what is the first thing to be done when we wish to find the net gain or loss? 4ti(i. What the second ? 407. What next? 408. When all the resources .iiid liabilities iiave buen ascertained what should lie done? 409. When will it sliow a net capital? 470. When a net in.solveiiey? 471. IIow is the net gain or lo.