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Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent Atre film6s d des taux de rMuction diff^rents. Lorsque le document est trop grand pour Atre reproduit en un seul clich6, ii est f ilm6 A partir de I'angle sup6rieur gauche, de gauche A droite, et de haut en bas, en prenant le nombre d'images ntcessaire. Les diagrammes suivants illustrent la mithode. ata siure, : 2X 1 2 3 1 t » [ , ., .: ^ ■■: i.^' ■'/ --':::: 4 5 6 I •«?• M BOOK-KEEPING BY DOUBLE AND SINGLE ENTRY, WITH AN APPENDIX ON / PRECIS WRITINGS INDEXING DESIGNED FOR SELF-INSTRUCTION AND FOR USE IN SCHOOLS & COLLEGES. ADAPTED EXPRESSLY FOR THE PREPARATION OF CANDIDATES FOR CIVIL SERVICED TEACHERS' EXAMINATIONS rCBUSHED BY THE DOMINION BUSINESS COLLEGE, Kingston, Ont. / KINGSTON : I'UINTKD AT THE BUITISH WIIIO OKHCE. 1887. ^-T^tZt^LCi^yC i^^. r.-^-x.-t-^ ^ Cc^e^^ /p^ PREFACE. I The schools of a country should teach what the pupils will need most to know and practice upon leaving them. The requirements of the age render the knowledge and practice of book-keeping a necessity. In connection with tlie Higli and Public Schools there has been an almost universal demand for a work on book-keeping, compact in form, moderate in price, and adapted to the wants of the pupils. To meet this demand the present book was prepared. Beginning with the elements of the Science of Accounts, the principles are unfolded and applied in a clear, simple, and progressive manner, easy both to learn and to teach. As a book for office reference and for self-instruction in tiie case of candidates for Civil Service and Teachers' Examinations, this manual will be found most valuable. In its preparation the aim has been to produce a use- ful book, and since there is little room for originality, except in the form of pre- sentation, the authors have not hesitated to use whatever they have found of value in the best standard books on the subject. If asked what constitutes the distinguishing features and advantages of the book, they would reply : First, its clearness and simplicity ; secondly, it is eminently practical, exemplifying the principles in theory and in use ; thirdly, it embraces within a small compass a variety of important subjects, never before found in one volume. The special thanks of the authors are tine to Mr. C. Donovan, of Toronto, who kindly read the proofs of the Appendix ou Prd-cis Writing and Indexing, Walkem, who prepared tlic chapter upon Commercial Law. and to Mr. R. T. I. COMMERCIAL AB REVIATIONS. The Following Ake the Abbueviatioxs Commonly Used in Business : A 1 , First quality. Acct., Account. Acc'nt, Accountant. Adv., Adventure. Amt., Amount. Ans., Answer. /ipr., April. Aug., August. Bbls., or lir'ls, lUrrels. liot., Bought. Blk., Black. Brot., Brojight. B. Ex., Bill of Exchange. Bgs., Bags. B. L., Bill of Lading. 1^1., Balance. B. P. B., Bank Pass Book K B., Bill Book. Bdls., Bundles. B. Rec, lulls Receivable B. Pay., Bills Payable. Ck. B., Check Book. Ck., Check. Cap., Capital. Cevtf., Certificate. C. B., Cash Book. C. D. , Certificate of Deposit C. 0. D. , CoUecton Delivery Com., Commission. Co., Company. Consgt. B., Consignment Book. Consgt., Consignment. Cwt., Hundred Weight. Chgd., Charged. Cr., Creditor. Ckt., Cocket. Ctg., Cartage. Cts., Cents. D., P^nce. Dec, December. Dr., Debtor. Doz., Dozen. D. B., Day Book. Dep., Deposit. Ds., Days. Dft, Draft. Dis., Discount. Div., Dividend, Do., The same. Dis. B., Discount Book. E. & O. E. , Errors & omis- [sions excepted. Ea., Each. Exch., Exchange. Exp., Expense. Entd., Entered. Feb., February. Fol., Folio. For'd, Forward. Frt., Freight, f. o. b., Free on board. F. B. E., Foreign Bills of [Exchange. (Jal., (Jallon. (len. L., General Ledger. G. C. B. , General Cash Book Hdk'f, Handkerchief. Hhd., Hogshead. Hund., Hundred. i.e.. That is. I. B., Invoice Book. Invty. B., Inventory Book. Inv., Invoice. Int., Interest. Inst. , The present mouth. Ins., Insurance. Jan., January. J. F., Journal Folio. Leg., Ledger. L. li., Letter Book. L. F., Ledger Folio. L. & G., Loss and Gain. Lbs., Pounds. M., Thousand. Mdse., Merchandise. Mar., March. Mftg.. Manufacturing. Mo,, Month. Man., Manifest. Mem., Memorandum. N. B., Take notice. No., Number. Nov., November. 0. I. B., Outward Invoice Book. O. L., Old Ledger. Oz., Ounce. Oct., October. O. B., Order Book. P. C.B., Petty Cash Book. P. T.C.B., Paying Teller's Cash Book. Pd., Paid. P. , pp. , Page oi Pages. Per, By. P. B., Pass Book. Prox., Next month. Prem., Premium. Pts., Pints. Pkg., Package. Pes., Pieces. P. O., Post Office. Pr. Ct., By the hundred. Pol., Policy. Qr., Quarter. Qt., Quart. Rec'd, Received. R. R., Railroad. Rect., Receipt. R. B., Receipt Book. Rec'd Pmt., Received Pay- S. B., Sales Book. [ment. Sept., September. ■s Shipt., Shipment. Sunds., Sundries. Sgt., Sight. St., Street. T., Ton. T. B., Trial Balance, or Time Book. Ult., Ultimo, 'ast month. Viz., namely. \V. B., Way Bu' Wt., Weight. Yds., Yards. Yr.,Year. @ At. % Per Cent. |/ Check Mark. ISS : INTRODUCTORY. [io<)k. sller's ay- ?nt. 1. Booh-Keeping is a systematic record of business transactions, and is designed to furnish the facts from which the true condition of the business may be ascertained at any time. 2. There are two methods of book-keeping — Single and Double Entry. The one is called Single Entry because each transaction in the Day-Book is entered in the Ledger only once, either on the Debit for Credit side of an account ; the other Double Entry because every transaction in the Day-Book is entered in at least two accounts in the Ledc er, once on the Debit and once on the Credit side. 3. Debtor, or Dr., signifies that the person or thing made Dr. owes us. 4. Creditor, or Or., signifies that we owe the person or thing made Cr. 5. Resources, or Assets, embrace whatever we possess, together with all sums owing to us. 6. Liabilities inchide all our debts. or ACCOUNTS EXPLAINED. 7. An Account, whether of persons or things, is a statement of the Debits and Credits resulting from bus. ^ transactions relating to it. Each Account has two sides— the Dr. or left-hand side, and the Cr. or right-hand side. • • 8. The Tities of Accounts (Ledger Headings) are the names by which our Accounts are known. Personal Accounts bear the names of the persons with whom we do business. Merchandise is the title employed to represent any kind of goods which we are buying or selling for profit. Cash is the name under which we keep an account of all money received and paid out. CLASSIFICATION OF ACCOUNTS. 9. All Accounts arising in business may be classified under two heads : (1) Speculatiue Accounts— Thoae that may show either u gain or a loss, such as Merchandise, Beal Estate, etc., etc. (2) Non -Speculative Accounts -Those that may show either a resource or a liability ; they are Cash, Bills Receivable, Bills Payable, Bank and Personal Accounts, etc. ' ACCOUNTS ILLUSTRATED. I 10. As a proper understanding of the nature and form of an account is vary important we will here give a number of examples with exer- cises which the student should study carefully and work out for him- self. We begin with Personal Accounts, which are kept to show our dealings with other persons and to determine whether we owe them or they owe us. Persons are debited when they become indebted to us or when we pay them anything on account. They are credited when we become indebted to them or when they pay us anything on account. If the Dr. side be the greater they owe us, and the difference is a resource. If the Cr. side be the greater we owe them and the difference is a liability. Transactions for first illudtrative .example : — (1) E. Mooers owes us an account, $1,200. (2) We buy of E. Mooers Mdse. on acct., $950. (8) He pays us cash on acct., $200, (4) We sell him a horse, $125. (5) Sold him goods on acct., $680. ((}) He gave us bis note on acct., $250. (7) We fill his order for $120 worth of Mdse. (8) Received of him cash on acct., $85. (9) We close our books and receive his note to balance the account. The above transactions give rise to the entries with corresponding numbers in the account. EXAMPLE I. Dr. E. Mookrs. Ck. HE OWES ITS. 1 WE OWE HIM. 1 4 5 7 1200 125 680 120 1 1 I 3 6 8 1 9 By Balance . . 950 200 250 85 640 2125 , 2125 ; •Results — He owes us $2,125 We owe him 1,485 Difference, or Resource $ 640 Before the 9th transaction occurred E. Mooers had become in- debted to us $2,125, as shown by the Dr. side of his account. He had paid us on acct. $1,485, as shown on the Cr. side. He therefore owes us the difiference, $040, which he pays as stated in transaction 9, when the account may be ruled up as shown in example above. EXERCISE I.— PERSONAL ACCOUNTS. The student should rule up three separate forms similar to Ex- ample I, and use one for each of the persons mentioned in the follow- ing exercise. Make the Debit and Credit entries, and find the stand- ing of each of the persons named : 1. R. Finlay owes me $480. 2. I owe H. Kelley $1,200. — 8— 8. Bold H. McCorraack Mdne. on account, $080. 4. Paid TI. Kelluy, to apply on acct., $500. 5. Sold R. Finlay on acct., Mdse., $1,500. 6. Received Cash of H. McCornuick on acct., $500. 7. Bought Mdse. of H. Kelley on acct., $750. 8. R. Finlay pays me cash on acct., $1,000. ' 9. liought Mdse. of H. McCormack on acct., $450. 10. Received of R. Finlay his note on accl., $980. 11. Sold H. Kelley Mdse. on acct., $975. 12. Gave H. McCormack my note on acct., $280. 18. Sold R. Finlay Mdse. on acct., $500. 14. Paid H. McCormack for balance of acct., $40. 16. Sold H. Kelley Mdse. on acct., $1,800. 16. J3ought House and Lot of R. Finlay for $5,000 ; paid cash $2,000 balance on acct. Results — Finlny, Cr., lialance $2,500 11. Kulley, Dr. " 1,826 ii. McCormack, balanced. A Cash Account is kept to show the receipts and payments of money and the amount on hand. All the money received should be entered on the Dr. side of Cash Account, and all the money paid out on the Cr. side, The di)Terence between the two sides will show the amount of Cash on hand. 1. We have on hand $28. 2. We receive $20 from John A. Scott on acct. 8. We sell for cash 80 bushels Corn @ 60c per bus. 4. We buy 80 bus. Wheat @ $1 per bus. 5. We receive payment in full for a note of $55, with $8 interest on the same. 6. We buy one Stove, for which we pay $85. 7. We pay Jas. Peck on acct., $86,50. 8. Jones pays us for a bill of Mdse. bought this day, $18.76. 9. We balance the Cash Acct. How much Cash have we on hand ? Aus., $76.26. 'i -9— EXAMPLE II. Dr. Cash. Cr. I 28 4 1 30 2 20 6 :w 3 48 1 i 30 30 5 fi3 \) 1 76 25 8 18 7.") 177 7fi 177 75 — 1 — Upon examining; the account we find that with the amount on hand at the beginning and the four sums received since, — * There has come into our hands $177 75 The three sums paid out together make 101 60 We ouglit to have on hand the difference $ 76 26 We therefore enter on the Cr. side %76.25 in red ink to show that it has not been paid out. The footings of the two sides now agree, and may he ruled off as in the Example. EXERCISE II. 1. Received into the business as an investment. Cash, $4,500. 2. Received for Mdse. sold, $850. 8. Paid Rent of store, $260. 4. Paid Cash for Mdse., $2,500. ' 5. Received Cash of R. S. Day on acct., $500. 6. Paid for clerk hire, $75. 7. Received Cash for Mdse. sold, $1,260. 8. Paid E. Watt on acct., $820. 9. Paid Cash to apply on our note, $370. 10. Sold goods for Cash, $1,800. 11. Received of S. Crawford, Cash on his note, $1,200. 12. Paid John Sills on account, $1,000. 18. Paid Clerks' salaries to date, $86. How much Cash have we on hand ? Ans., $4,999. The student should rule up form, enter the above transactions, and, having found balance of Cash on hand, enter it on Cr. side and rile up the Account. A Merchandise Account represents any kind of goods which we buy and sell for profit. This account should be debited when the goods are bought, or cost value, and credited when they are sold, or — 10 — produce value. When the goods are all sold, if the Credit side of the account be the larger, the excess will be a gain. If the Debit side be the larger it will show a loss. When the goods are not all sold, in order to find the gain or loss an * Inventory must be taken and the present value of the goods on hand must be placed on the Credit side of the account. The difference will then show the gain or loss. The inventory and the closing entry of gain or loss are written in red ink to distinguish them from the business items. Ruling should all be done in red ink. Business Items — 1. Bought goods of Edwin Thompson on acct., |2,600. 2. Sold goods to Wm. Craig on his note, $1,800. 3. Bought goods for Cash, $1,250. 4. Bought goods of E. Roes on acct., $525. 5. Sold goods for Cash, $850. 6. Bought goods of H. Jack on my note, ^975. 7. Sold goods to A. Bajus on acct., $285.50. 8. Sold Jones & Co., for check, goods, SI, 230.75. 9. Bought goods of D. H. Whitney on acct., $3,465.25. 10. Bought goods of J. A. Pike on my note, $1 ,875.80. 11. Sold goods for Cash, $1,448.50. 12. Sold goods to Thos. Allen on acct., $926.30. 13. There remains unsold goods as per inventory. $5,000. "W^hen Merchandise is bought place amount on the Dr. side of the account ; when sold, place amount on Cr. side. EXAMPLE III. Dr. Merchandise. Cr. COST. PRODUCED. 1 2500 2 1800 3 12.'50 5 850 4 525 7 285 50 6 975 8 1230 75 9 3465 25 11 1448 50 10 1875 80 12 926 30 14 Gain 950 13 Inventory . . . 5000 11541 05 11541 05 • Inventory.— A list In detail with prices of jj.-operty on hand at an> time. — II — statement — Amount sold $ 6541 06 on band 5000 00 Total proceeds $11541 05 " cost 1059105 Netgain $ 960 00 To the Student : Rule up a Ledger form for the following Exer- cise and post the items ; enter the Inventory on the Cr. side, find your gain and enter it on the Dr. side, then rule up as in the form above. EXERCISE III. 1. Have goods on hand valued at $5,000. 2. Sold goods to John Rowlands on his note, $1,124.28. 3. Bought goods of Wm. Austen on acct., $8,126. 4. Sold goods to A. 0. Allison for Check, $1,431.46. 6. Sold goods for Cash, $934.16. 6. Bought goods of Geo. A. Allen on my note, $765.74. 7. Sold Geo. Anderson on acct. goods, $498.26. 8. Sold goods for Cash, $828.61. 9. Sold W. H. Gordon goods on his note, $1,681.46. 10. Bought goods of W. Kitto on acct., $1,520.10. 11. Goods remaining unsold are worth $4,000. Results — * Amount sold $ 6493 21 " on hand 4000 00 Total proceeds $10498 21 " cost 1041184 Netgain $ 81 37 Expense Account is the title under which we keep an account of the expenses incurred in conducting a business, such as rent, fuel, gas, taxes. When desired separate accounts may be kept with each branch of expense and closed into Expense Account or Loss and Gain. All such accounts are Dr. for their cost and Cr. for anything sold from r-r — 12 — them , but generally they have no credit entry until closing the books for Profit and Loss. Business Items — , 1. Prepaid rent of store with Cash, $200. 2. Bought for Cash set of Blank Books and other stationery, $88.34. 8. Paid gas bill with Cash, 823.18, 4. Paid A. Bureau on acct. of salary, $24.60. 5. Paid for bill of furniture with Cash, $225. 6. Paid Cash for postage stamps, $10. 7. Eeceived Cash for old office desk, 825. 8. Present value of furniture and other items charged to Expense, $200. EXAMPLE IV. Dr. Expense. Cr. 1 200 25 38 34 Inventory 200 2.3 18 Loss & Gain . . 296 12 24 60 225 10 521 12 .521 12 Statement- 'Totalcost , 8521 12 Amount produced 225 00 Difference, or Loss 8296 12 To the Student : Kule up Ledger account for the following trans- actions, and post as above. Enter the Inventory and Loss or Gain in red ink and rule up. EXERCISE IV. 1. Paid one quarter's rent of store, with Cash, $150. 2. Bought 5 tons of coal for store, $35. 3. Paid Cash for desk and chairs, 855. 4. Received Cash for one letter press and copying book, $12.50. 5. Paid clerks one month's salary, 860. • > 6. Paid for advertising, $15.40. 7. Received Cash for use of half the store, $15. 8. Value of property now on hand, charged to expense, $125. How much is the net loss ? Ans., $162,90. —13— Proprietor's or Stock Account. — The Proprietor is the person who owns and conducts the business. He is credited for the amount in- vested at the beginning or during the busines"^, and for his net gain when the books are closed. He is debited for his liabilities on com- mencing business, and for all amounts withdrawn for private use dur- ing the business, also for the net loss, if there be any, at closing. Sometimes the title " Stock" is used instead of the proprietor's name. We would prefer to have the student use his own name for the Ledger title in place of either proprietor or stock. Business Items — 1. Student invests Cash, 85,000. 2. He owes on a note, favor of R. D. Brough, S500. 8. He withdrawp Cash for private expenses, $75. 4. When the books are closed his net gain is $850. EXAMPLE V. Dr. Student. Cr. LIABILITIES AND LOSSES. |j INVESTMENTS AND (JAINS. 2 3 Present Worth . 500 75 5275 5850 — 1 4 * Gain 6000 850 5850 — Balance . . 5275 Statement — Investment $5000 Gain 850 $5850 Liabilities and Losses 575 Present worth $5275 After closing the present worth may be brought down upon the Cr. side, to which it properly belongs for the continuation of the business, as shown above. EXERCISE V. Rule form for the following transactions. Post and close as above : — 1. Student invests Cash, $2,726; Mdse., $3,000. >. * • - ■ ■ —14— 2. He owes Geo. A. Allen on acct., $62.50. 8. He withdraws Cash for private use, $45. 4. He owes a note in favor of J. P. Byers, $300. 5. Net loss on closing the books is $750. Notes and Drafts are written obligations to pay certain sums of money, and are divided into two classes. Those that are payable to us are called Bills Receivable. Those that are payable by us to others are called Bills Payable, Bills Receivable should be Debited when the notes are received into the business, and Credited when they are collected or disposed of. The excess, if any, will appear upon the Dr. side and show a Resource or amount of notes on hand. The Cr. side could not be the larger because we could not dispose of more notes than have been received. Business Items — 1. Sold Geo. Turner on his note Mdse., $1,600. 2. Received of Israel Taylor his note on acct., $1,240. 8. Bought D. Taggart's note for Cash, $1,800. 4. Received cash to apply on C Turner's note, $1,200. 5. W. Squires gave me his draft at 10 days on A. Shannon in full of acct., $850. 6. Received cash in full for Israel Taylor's note, $1,240. 7. A. Shannon has paid his draft. 8. Received of D. Taggart Cash to apply on his note, $800. EXAMPLE VI, Dr. Bills Receivable. Ce. NOTES RECEIVED. DISPOSED OF. 1 2 3 5 1600 1240 1800 850 5490 4 6 7 8 9 By Balance 1200 1240 850 800 1400 5490 Dr. Notes Received $5490 Cr. " Disposed of 4090 Balance Notes on hand $1400 ■15— EXERCISE VI. Bills Payable should be credited when issued or '^iven out, and debited when they are paid or redeemed. The Cr. side must be the larger, if either, as we could not redeem more notes than we had given out. The excess is a liability. Business Items — 1. Gave M. Sills our note for Mdse., $1,200. 2. Bought Mdse. of W. H. Jordan on our note, $960. 3. Paid M. Sills Cash to apply on our note, $480. 4. Accepted J. R. Booth's draft at 30 days in full of account, $1,450. 5. Paid balance of our note, favor of M. Sills, $720. 6. Gave C. Dawson our note in full of acct., $1,140.25. 7. Paid W. H. Jordan cash in full tor our note, $960. 8. Paid our acceptance, favor of J. R. Booth, $1,450. 9. Gave W. Rae our note in settlement of acct., .$1,320.50. Dr. EXAMPLE VII. Bills Payable. Cr. REDEEMED. ,{ ISSUED, 3 480 ; 1 1200 5 720 2 960 7 960 4 14.50 8 |1450 6 1140 251 9 To Balance. 2460 75 1320 6070 50 75 6070!7u| Issued Redeemed. .$6070 75 . 8610 00 Balance $2460 75 EXERCISE VII. The student will rule up two Ledger Accounts — one for Bills Re- ceivable and one for Bills Payable -and post each of the following transactions to the account to which it belongs, and find the balance of each account. Business Items — 1. I have on hand the following notes : E. Mooer's note for $1,280, John May's note for $650, » Geo. Moore'r. note for $890. iri! -i6— 2. I have the following notes outstanding : One in favor of G. H. Mills for $1,680, One in favor of H. W. Miller for $1,200, One in favor of W. Moran for $675. • 8. Sold W. Fell Mdse. on his note, $1,280. 4. Received of John Wilson his note on acct., $1,?40. 5. Bought Mdse. of L. A. Fell on our note, $560. 6. Received Cash of E. Mooer on his note, $1,000. 7. Redeemed our note, favor of H. W. Miller, $1,200. 8. Accepted S. Marlatt's draft at 10 days, favor of Thos. Marsh' $678. 9. Geo. Mooer's note has been paid in Cash, $890. 10. Paid G. H. Mills to apply on our note Cash, $1,200. 11. Sold Mdse. and received in payment draft at 30 uays on Chas. Meek, $840. 12. Received Cash in full for John May's note, $650. 13. Paid our acceptance in favor of Marsh, $678. 14. John Wilson has paid his note due this day with Cash, $1,340. 15. Paid our note in favor of L. A. Fell, $560. Balance of Bills Rec. Acct $2350 ". " Pay. " 1075 11. Negotiable Paper is that which may be bought and sold and thus have different owners at different times, who shall possess the right of enforcing collection at maturity in their own name. Such paper embraces Notes, Drafts, Bills of Exchange, Acceptances, Cer- tificates of Deposit, Bank Bills and Checks. 12. A Promissory Note is an absolute promise in writing made by one person to pay a certain sum of money to another person or to his order, or to bearer, at a certain time. Parties to a Note : Ist, the person who writes the note and signs his name to it, is called the Maker; 2ud, the person whose name is written in the body of the note, who is to receive —17— the money, is called the Payee. In the form below, John Deane is the Maker, and W. B. Squires the Payee. NOTE No. I. S Thos. Keenan, Dr. To Note at one month to balance Acct. i G2 aO 84 10 80 94 80 060 15 20 Isaac N. Wilson, By Mdse. as per bill 16 -. Cv. •2H Thos. Marsh, Cr. By Note (d 30 days in full of Acct. I- 18 I 20 Thos. Dunlop, To 50 lbs. Floui- (d $6. Cr. Dr. I- By irder on Uco. Hobart (d 10 days. ___ 19 27 Robert Watt, Dr. To order on D. M. Walker 27 D. M. Walker, By order as above Cr. 550 14 80 300 230 04 30 64 , 30 —25— FORM OF DAY BOOK. -Continued. KixfJSTov, March 20, 1885. J. S. Rowlands, By Cash iu full of Awt. - - 21 _ Cr. •J.s James rrrahain, Qj. Hy Note at 1 month in full of Acct. 24 I. N. Wilson, Pj, To M boxae Cheese (n, ,?."). 20 2.-) __. J). xVI. Walker, Cr. By CasJi in full of Acct. to date •2'.t •2U 26 Win. Austen, By Mdse. as per Bill Dr. To order on T. Dunlop, Cr. 48 20 62 50 260 22 10 210 •i!t T. Dunlop, By order as above Cr. 70 - 27 '-'!• I. N. Wilson, D,. To Note @ 2 mos. on Acct. 80 -!i J. A. Greenwood, By Mdse. as per Invoice Cr. •J!t Dr.. To Cash on Acct. 81 •-'!' Win. Austen, jy^. To Cash in full of acct. to date 100 134 50 146 \ -26- LEDGER. 27. The Ledger contains all the accounts under which the Debits and Credits recorded in the Day Book are to be placed All the charges against any one person, in the Day Book, are entered in the Ledger under that person's name, on the Dr. side, and on the Cr. side are entered all the credits (if any) in his favcr. This gives us a brief statement of our dealings with that person and shows how our account stands with him. The transferring of these Debits and Credits from the Day Book and placing each under its proper title in the Ledger, is called Posting. To Post the first entry of yoin- Day Book turn to Israel Taylor's account in your Ledger and on the Cr. or right hand side in the first column, write the date ; in the second, the explanation "By Invest- ment;" in the third, the page of the Day Book, where this Entry is found ; and in the fourth, thii amount for which he is credited. You will now enter on the left hand or Debit side of the account, in the same order, the Date, Explanation, Folio or page of Day Book, and Amount for which he is debited. Then turn to the Day Book and place the page of the Ledger on which this account is found in the left hand column, opposite the Entry. As soon as an entry is posted we should mark in each book the pago of the other, to show what entries are posted and for convenience in checking the accounts or making out bills. The next entry may be posted to th*^ Dr. side of D. M. Walkei's account, and so proceed with each entry as you come to it till the whole Day Book is posted. Dr. 188,-) Miir I To Smuliies -27— 2d.-FORM OF LEDGER. Israel Tayu>r. •-';! 38910 188a Mar 1 IJy Investment Dr. •-'.'! 4287 40 Dr. 188i) Mar 1 To Halauce 1). M. Wai.kkk. 80 40 8() 40 KSS.'i Mar I5y U. Watt " Cash CV. -I (54 30 •-'•'> 22 10 80 40 Di, 1885 Mar I 'I'd Halanco J. 8. Rowland •-'••i 48 20 Cr. 188.-) Mar 20 By Casli 48 20 ^ , Dr. James Johnson. Cr. 188") Mai- 7 To Mdse. 2-1 7(5 80 1885 Mar 1 Ry Ralance ( 2:^ 76 80 1 1 ■ Dr. R. U 'atts. Cr. 1885 1885 Mar 19 Tv) D. M. Walker -' ! 1 ■ 1 ; (»4 30 i ! i ! 1 ; 1 I Mar 1 ( i 1 By Balance 1 •2:\ (54 30 1 '\ ii _ ; • . 1 i J 1 (" i Dr. — 28— FORM OF LEDGER.— Continued. W. A. VVlLMOT. Mar 2 To Mdse. 15 50 Dr. M. Ryan. 1885 Mar .3 By Mdse. Dr. Thomas Maiwh. 1885 Mar 5 To Cash 12 " Mdse. ' J1885 -':< 45 fMar 5 By Mdse. •-'4 94 8() 139 80 Bills Rec. Dr. 1885 Mar 14 To Bills Pay. Thomas Keenav. •->4 960 1885 Mar 6 By Mdse. Dr. 1885 Mar 9 To Md«!e. Jas. Graham. ■~'4 62 50 Cr. Cr. •-'•! 15.3 75 Cr. •-'••i 125 •-'^ 14 80 139 80 Cr. •-'4 960 I I 1885 Mar 21 By Bills Rec. Cr. 2*> 62 50 jij —29 — Dr. 1885 ' Mur 18 To Mdse. FORM OF LEDGER.— Continued. Thomas Dunlop. Cr. •24 300 300i ! 18851 ' Mar 26 By Bills Rec. 26 " W. Austin I 1 •24 230 •2o 70 i\ !i aooi Dr. 1885 Mar 24 To Mtlsc. 27 " Bills Pay. Isaac N. Wilson. '25 260 25 i 100 1885; Mar 14 By Mdae. Cr. 24 r.50 139 80 Dr. 1885 Mar 20 To T. Dunlop 31 " Cash I W. AUSTEX. 25 70 25 146 216 1885 Mar 26 By Mdae. Cr. i' I 25! 216, 2io; ' I Dr. 1 885 Mar 30 To Cash J. A. (rRKENWOOl). 1 i! ' ' l'^'"^ 50 1885 Mar. 30 By Mdse. Cr. 25 124 62 50 The accounts which are settled should be bahinced, oa the Ledger at the time of settleraoiit without waituig till the whole Day Book is posted. In actual practice the accounts are uot closed till they are settled unless the Ledger is fall and a new one to be opened. H i ! -30- Dr. 1885 Mar 1 To Israel Taylor, 4 " Mdse., 6 " Mdae., CASH RECEIPTS. •Investment Sold Frank Rees Petty sales Mar 7 8 To Mdse., 11 " Bills Receivable, 12 " Mdse., Maris 16 To Mdse., 17 " Bills Receivable, 18 '" Mdse., 19 " J. S. Rowlands, 21 " Bills Receivable, Mar 25 '' To D. M. Walker, 27 " Mdse., 29 " " 31 " Bills Receivable, Balance Sold VV. Welbanks Kitto's Note Petty sales Balance Petty sales Sold G. Moore M. A. Kemp Petty sales In full of acct. VV. C. Kent Balance In full of acct. Petty sales Sold N. Ward Geo. Hobart 1200 13 60 98.37 17 225 12] ")0 131197 1311 97 119197 363 50 1.5.>5 47 1 480 22 8195 48 156 112.50 1 48 20 31180 ^ 758 45 2244 67 1951 27 22 10 94 90 230 ' 1 4.36 10 2387 37 29. The Cash Book, as stated in Article 22, should contain a record of all Cash received and paid in conducting a business. It sliould be balanced once a week, or every day if the business requires it. ♦ The Kxplauation should be written one-third smaller. T 131197 1311 97 119197 3«3 oO ir>,);')47 148G 22 758 45 2244 67 1951 27 j 436 10 2387 37 1885 Mar 3 Uy Mdse., 4 " Insurance, 5 " Mdse., (> " llaLilii't', Mar 7 To Expense, 10 " I-' •■ K.ilaucr. Mar 13 By Bills Payable, 15 " Mdse., 22 " Expense, 23 " Bills Payable, 24 " Expense, _3i_ CASH PAYMENTS. Cr. I» I!m1. ilhc. :Mar 28 Expense, 30 By Mdse., 31 " By Expense, " " W. Austen, ;!i ■ i; iilaiiic, Paid fi-eight On Stock Bought of T. Marsh ( a.-
  • ii liaiiil 20 0A 45 120 ll!H !»: 131197 Bougiit Stationery and BcK)ks 21 25 Paid for repairs on Store 48 t asli (III liaii'l ' 69 25 U.Sti2'J 1555 47 Favor Kerr Paid Freight Bought Coal, for stove J. W. Deane's Paid Gas Bill 120 13 40 19 50 128 12;50 - 293 40 ( asli (111 liaiiil ' » I'.t.-.t •_>: u 2244 87 Paid Rent 25 1 '■ Bought of J. A. Greenwood 50 1 »■ Paid Salary 60 • In full of acct. 146 — - . 281 t ash (III band ; ! 2106.37 2387 37 laiiiess To balance this account find tbe amount received as shown by the Dr. side and the amount paid as shown by the Cr. side. The differ- ence should agree with the Cash on hand. Enter this bahmco in red ink on the Cr. side, and alter ruhug up as shown in form, bring the balance down to the Dr. side, which was the larger before closing, and continue the account as before. ^ I i i'l! .32- ^^ b» ^N «N — < (M m ^ «fl 'U U £ j * ^ ^ _i^ k>4 g ; »«!; « N 1 ^ •« 1 ^ ^ •fl 1 ■< m "a 3 S tf 'i > ■* 4 1 > 1 _.'. 1^ -— s P3 H i?? 8 ^ I 1 M S ■* »— < : V. ^ t— „ •^ OS ,H » bi »— 1 (N > *• ^ «. ^ s* ! S *^ : H W M cc ec cc cc ff :o ® cc rt cc ^H M ' u H J rv^ « ■fi n <« -• ' - ' P3 ^ 'Ji n t— 1 fj li W s » -ft > > K tf c < « S ^ - -. s 05 >. ?5 Qi b 1 s § ^ % Si 1 > < »H '>. ^ ^ J 1 » 1 ■ &b t^ ce -* ■* " ■• \ hi 1 > H \ I i: I _K- 1—! — W 5 g -4J 2 ■*-> U ol 4J a 5 cC ' =f « s s c « 0; t ^ 1 1, IS w > PS s E 1 ; 1— « 1 , ^ H 4J ss 02 H 1 !E . « ■^t< CO 11 eo QO H Q f-H "— ' ©< f— ( ^H • ^-1 "1 10 »1 00 © •n kT ^H 2 §5 hr^ W <, <• Lti ^ tf ^ •«! cS !R u ^ 1 1 >• ^ I —*<... ., _ H 'a <1 § GO § 8 ""g'T S t- 9. : r-' >> 2 :: ^ •: •-■ c 1, H > p: ^ X y, *i < > >> •J Oh > > "1 .J ►^ >< •* ^ ■^ I-] -H /•/^ a 2 s »; f4 2 tf j; X K J CS rz3 ^ 5: ^ H c C 0) i:; &:4 /; 3 ?; ^ H 1-; is M « P ?. a »5 u jf OS S -. s .^d f^ o cS CO W tf i-s ■* & u eS •* ^ i(i O BILL BOOK EXPLAINED. 32. When another man's Note or Acceptance comes into our hands it is entered with all the particulars required in the Bills Receivable book. When our own Note or Acceptance is given out it is entered in the same way in the Bills Payable book. We thus have a complete record of all Bills we handle, and by reference to this book we can see what Bills we hold and when they are due, also what Bills are out and when they must be paid. The space under "Remarks" should be filled as Bills are paid or disposed of. The Headings of these books will further explain their use and the manner of entering Notes or Bills. You will notice that the Bills entered in the forms on the opposite page belong to the preceding set ; hence the Notes yet on hand and the Notes unpaid as shown here will agree with balance of Bills Receiv- able and Bills Payable in statement, page 34. STATEMENT OF RESULTS. 88. The net gain or net loss of the business may be determined thus : First, ascertain the Present Worth by finding the difference between the Resources and Liabilities. If this Present Worth be greater than the original investment, the difference shows the net gain ; if it be less, the difference is the net loss. In making out the Statement of Resources and Liabilities, the standing of Personal Accounts only can be obtained from the Ledger. The amount of cash on hand will be found from the Cash Book ; the Resource of Bills Receivable, and the Liability of Bills Payable, from the Bill Book ; and the value of unsold goods from the Inventory. —34— FORM OF STATEMENT OF RESULTS. REHOUKCES. Mdse. unsold, an per inventory Cash, as per Cash Book Bills Receivable, as per Bill Book W. A. Wilniot owes on acct. Total Resources LIABILITIES. Bills Payable, as per Bill Book Due M. Ryan on acct. '• I. N. Wilson on acct. " J. A. Greenwood on acct. I. Taylor's Present Worth " Net Investment Total Liabilities Net Gain 3400 2106 77 15 1060 153 190 74 37 30 50 75 5599 1477 4121 3898 ^23 17 75 42 30 12 i!i! i] TO CHANGE FROM SINGLE TO DOUBLE ENTRY. 84. The distinguishing feature of|j Single Entry is that personal accounts only are kept in the Ledger. If the same Ledger be used, it is apparent that to change it to Double Entry such additional accounts must be opened as will enable us to exhibit all the Eesources and Lia- bilities of the business, as shown by the above Statement, viz. : Mer- chandise, Cash, Bills Eeceivable and Bills Payable accounts. Then, if you credit the proprietor's account with his net gain, your Ledger should be in balance, and you may proceed with the work by Double Entry. If in changing from Single to Double Entry you wish to open up a new Ledger, it is only necessary to close up the Single Entry books. Take off a statement as is here done, open your Day Book with a list of the Resources and Liabilities, and make a Journal entry, debiting the Resources and crediting the Liabilities, and credit pro- prietor's account (or partners' if it be a firm) for the difference between them. To more fully illustrate this subject, we use the Resources and Liabilities shown in the above statement as the foundation for a busi. ness in Set IV.. —35— MATERIAL FOR SHORT SETS. Work $16: Tlio Student will write up a Day-Book and Ledger for each set, and make out a statement showing tiie condition of the business, pro- prietor's net worth, and the net gain or loss. See form, Art. 88. These transactions will be found espocially useful for drill exercises or examination tests, and may be written up by Double or Single Entry. EXAMPLE I. Carting Business. Student commenced business 1st July, 1879, with a cash capital of $5,000. Bought for cash 4 horses and equipments. Paid Cash for rent of stable one month, $25. July 8. — Received Cash for cartage during the week, $75. done on acct., viz., for W. A. Miller, $10 ; J. L. Hunt, H. F. Wilmot, $12. Paid workmen's wages, 835.76. " 15. — Paid Cash for horse-shoeing, $7; for repairing carts And harness, $3.75. Received Cash for carting during the week, $83.75. Work done on acct., H. F. Wilmot, $10 ; Wm. Tay- lor, $17 ; J. L. Hunt, $3 ; C. E. Cady, $5.75. Paid workmen, $29.50. " 22. — Received Cash for drayage during the week, $85. Work done on acct., H. F. Wilmot, $15 ; W. A. Miller, $17.50 ; C. Welbanks, $18. Received Cash, W. A. Miller on acct., $18 ; H. F. Wilmot, $27; J. L. Hunt, in full of acct. Horses, carts and equipments valued at cost. Net Capital $5,266 Net Gain 266 Ledger Headings 8 lines each. EXAMPLE II. Dry Goods Business. Sept. 1 , 1879. — Student began business with a cash capital of $1 ,000. Paid for repairing store, $75. Bought goods of B. White on acct. amounting per Invoice to $2,517. i -36- Sept. C— Sold Mdse to M. Sills, Perth, on acct., for $175 ; to D. Kerr, city, for Cash, $210.80 ; to Tliilip Uaflfuer on his note @ 80 days, 8412.75. " 12. — Paid one month's rent of store in Cash, $100. Paid em' ployees for services to date, ?J50. Sold Mdse. to John H. Hunter on ucct., $817.25. Received from M. Sills, Perth, goods returned, not being the kind ordered, for which we credit him $25. " 80. — Settled with John H. Hunter for his indebtedness, accept- ing a compromise of 75 per cent. ; cash received in full settle- ment of acct., $ ; lost the balance, $ . Paid cash for petty expenses, $17.50. Paid 13. White cash on acct., $500. Sold Mdse. for check, $375. Mdse. unsold, valued at $1584 72 Net Gain 211 21 Present Net Worth.... .. 121121 Ledger Headings, each 5 lines. Oct. Oct. EXAMPLE III. rtetail Grocery Business. 1, 1879.— Student commenced business with Mdse. on hand valued, at $500. Bought of Fred Scott, bill of Mdse. as per invoice, $300; gave in payment order on R. J. Bushell for $101, balance on acct. 2. — Sold Robert Simpson, on acct., 10 lbs. Rio Coffee @ 12c, 1 lb. best Black Tea, $1; 25 lbs. Sugar @ 12c. Sold Jas. John- son, on acct., 1 box Raisins, 25 lbs., at 20c. Sold H. A. Dun- lop, on acct., 1 gal. Vinegar, 75c ; 8 lbs. Black Tea @ 75c ; 4 bus. Apples @ $1. 3. — Sold J. W. Deane, on acct., 50 lbs. Ham @ lie ; 1 box Her- rings, $2 ; received cash on acct., $5. 4. — Sold M. Doran, on acct., Ibbl. Flour, $8. Sold A. Cannem on acct., 5 gals. Cider Vinegar @ 75c ; 3 bus. Potatoes @ $1 per bus. 5. — Sold Thos. Clearey, on acct., 6 gals. Molasses @ 75c ; 50 lbs. Sugar @ 12c ; 12 lbs. Coffee @ lie. il 'J Oct. 0. — Sold J. Coon, on acct., 1 bbl. Mess Pork, $11; 8 boxes Sugar, eacb 500 lbs., @ Gc. ♦• 8. — Sold Jas. Sweeney, on acct., 100 lbs. Loaf Sugar @ 9c ; 60 lbs. Crushed Sugar @ 8c ; 8 lilids. Molasses @ $20 each. " 10.— Sold F. Clark, on acct., 1 tiorce Eice, 1,800 lbs., @ 8c. Mdse. unsold, valued at % 680 00 Net gain 59 27 Present Net Worth 559 27 Ledger Headings, each 5 lines. EXAMPLE IV. Retail Grocery Business. Nov. 1, 1879.— Student commenced business with Mdse. as per inven. tory, $180 ; Cash, $400. Sold John Brown, on acct., 5 bbls. Flour at $10. Sold A. Bureau 25 lbs. Coffee @ 10c ; 100 lbs. Japan Tea @ 76c ; received Cash on acct., $25. Nov. 2. — Bought of T. Vanorder, on acct., 50 bus. Winter Apples @ 50c ; 100 bus. Early Rose Potatoes @ $2.50. " 3.— Sold R. J. Bushell, on acct., 8 bbls. Flour @ $8.50. « 4.— Sold Geo. Baker, on acct., 5 bbls. Potatoes @ $2.75 ; 2 bbls. Apples @ $3. * 6. — Paid T. Vanorder, on acct., Cash, $100. Received of Geo. Baker Cash in full of Acct., $ . ' 6.— Bought of I. N. Wilson, on acct., 5 bbls. Mess Pork @ $18.75 each. * 7. — Sold Geo. Anderson, on acct., 2 bbls. Mess Pork @ $20 each ' 8. — Sold Wallace Welbanks, on acct., 10 lbs. Japan Tea @ 97c ; 100 lbs. Sugar @ 12c ; 25 lbs. Coffee @ 81c. ' 9.— Sold G. E. Bell, on acct., 8 firkms Prime State Butter, 210 lbs., @ 88c ; received Cash on acct. of same, $50. ' 10.— Sold H. C. Miller, on acct., 8 boxes Laundry Soap, 283 lbs., @ 9c. / « 11. — Received of Wallace W^elbanks Cash in full of acct., $ . -38- Nov.l2. — Sold M. Baird, on acct., 10 boxes Florida Oranges @ $5.26 each. Paid T. Vanorder Cash on acct., $100. Mdse. unsold as per Inventory $800 00 Net Gain 140 72 Net Capital 720 72 .1 EXAMPLE V. [Student should make out from these items, Statements corresponding with that on page 34.] A merchant commenced business with a capital of $5,000. At the end of the year his books show the following facts : Amount of cash received, $15,000 ; amount paid out, $10,500. A's account stands Dr. $1,600, Cr. $1,000; B's account stands Dr. $4,000, Cr. $3,500 ; C's account stands Dr. $975, Cr. $450 ; D's account stands Dr. $433.76, Cr. $800 ; E's account stands Cr. $1,500 ; Mdse. on hand per Inventory, $2,750. Required — The Net Gain and present Net Capital. EXAMPLE VI. A. Bajus and E. Mooers commence business with the following Re- sources : Cash, $3,000 ; Notes, $1,500 ; Mdse., $8,500 ; Real Estate, $10,000 ; due them on personal accounts, $12,500. At the end of six months their books show the following Re- sources and Liabilities : Cash on hand, $1,500 ; cash in bank, $4,000 ; Bills Receivable, $8,500; Mdse. unsold, $3,750; Real Estate, $15,0D0 ; due them on personal accounts, $5,000 ; amount owed by the firm on notes, $750 ; on personal accounts, $1,500. Required — The Net Gain. The Net Capital at commencement. ♦' " " " time of closing. EXAMPLE VII. E. Rees and F. Rees enter into copartnership on equal terms, each investing at commencement $10,000, and each withdrawing during the business $1,500. At the close of the year the con-* ditiou of affairs as shown by their books is : Cash on hand. —39— $500 ; balance iu bauk, $7,000 ; due them on personal accts., $5,788.75, of which $875 is worthless ; due them on notes, $6,750 ; Mdse. on hand, $2,700 ; Keal Estate, (55,000 ; Bank Stock, $8,500. They owe on personal accts. $10,000 ; on notes, $5,600. Have they gamed or lost in business and how much ? What is each partner's net capital at dosing ? QUESTIONS. 1. What is Book-Keeping ? ' 2. How many systems of Book-Keeping are there ? ^ 8. How are the two Systems distinguished ? ^ 4. What is the meaning of the word Debtor ? ^ 5. What is the meaning of the word Creditor ? * 6. What are Resources ? * 7. What are Liabilities ? • 8. What is an Account ? ^ 9. Explain "Ledger Headings" or "Title of Accounts." ^ 10. How may Accounts be classified ? ' 11. Define Speculative Accounts. * Give examples. 12. Define Non- Speculative Accounts. * Give examples. 13. Explain Personal Accounts. ^^ 14. When are Personal Accounts debited and when credited ? ^° 15. What do Personal Accounts closing "To Balance" represent?^" 'By Balance" ?«» 16. Explain the term Cash Account. ^° 17. When is Cash debited ?i° When credited ?*° 18. How will Cash Account close ? ^° 19. What will the Balance represent ?^° 20. Explain Mdse. Account. *» 21. When is it debited ?i° When credited ?*" 22. How will Mdse. Account close goods all sold ? ^° 28. Explain the term Inventory. ^° 24. What is done with any unsold goods at time of closing ?^° —40- 25. What is an Expense Account ? ^° 20. How do you close an Expense Account ? ^° 27. What account shows the amount of Capital in business ? ^° 28. When do you Debit the Proprietor's Account ? ^° 29. When do you Credit the Proprietor's Account ? *° 80. What does the Balance show P^" 81. What does Bills Receivable Account represent ?^° 82. When is Bills Receivable debited ?i° When credited ?" 83. How will this account close ? ^° 84. What does the balance represert ?^° 85. What does Bills Payable Account represent ?^° 86. When is Bills Payable credited ? i° When debited ? ^o 87. How will this account close ? ^" 88. What does the balance represent ? ^° 89. Explain Negotiable Paper. " 40. What are the principal kinds in common use ? ^^ 41. What is a Promissory Note ?" 42. How many parties to a note ? What are they called ?^^ 48. What is a Draft ? " 44. How many parties to a Draft ? What are they called ?^* 45. Explain the term Acceptance. ^* 46. What is a Bill of Exchange ? ^e 47. What is a Certificate of Deposit ? " 48. What is a Check? 18 49. What is a Certified Check P'^ 50. What are the principal books used in (Single Entry Book- Keeping ? " 61. Explain the Day Book.-^^ 52. Explain the Cash Book. 22 58. Explain the Bill Book. 23 54. Explain the Ledger. ** 55. How do you find the Proprietor's Net Worth in Single Entry ?^ 56. How do you find tho Net Gain or Loss for any period ?^ 57. How do you proceed, to change Single to Double Entry ? ^ :pj^:EiT II. DOUBLE ENTRY. ■ 'i DOUBLE ENTRY. ' INTRODUCTORY. .85. The term Double Entry has reference to the fact that for every transaction two or more entries are made in the Ledger, the arrangement of these entries being such as will produce on the Ledger equal debits and credits. This principle of ** Equal Debits and Credits " is the leading feature of Double Entry. 86. The chief points of difference between Single and Double Entry are : (1) In Single Entry Personal Accounts only are recorded in the Ledger ; in Double Entry accounts are kept not only with persons, but with all kinds of property. (2) In Single Entry a record is kept of Eesources and Liabilities ; in Double Entry a similar and additional recoid is kept of Gains and Losses. (8) In Single Entry each transaction is entered to but one ac- count in the Ledger ; in Double Entry each transaction is entered in at least two accounts in the Ledger. 87. The advantages of the Double Entry system are : (1) It is a more complete record of your business. (2) The fact of every Debit having its corresponding Credit creates a safeguard against mistakes. (8) It shows wherein your Gains and Losses arise, thus furnishing a guide in the management of your business. 38. The principal books used in Double Entry are the Day Book, Journal and Ledger. THE DAY BOOK. 89. The Day Booh is a history of business transactions, with the date and in the order of their occurrence. The entry should be a plain statement of all the essential particulars of the transaction, in brief language that may be easily understood. —44— S002SZ. 1 April, 1886. i A. Davis has this day commenced the Flour and Feed Business at 122 King Street, Brockville, with a cash investment of In journalizing this transaction we make Cash Dr. because Cash has been received into the business. A. Davis is Credit because the Cash has been received from him. Bought of Wm. Briggs for Cash, 100 bbls. Flour @ $7 In journalizing this transaction we Dr. the Mdse. because it cost valve and is received into the business, and we Cr. Cash that is paid out. Sold A. Bajus on acct., 60 bbls. Flour @ $8 In journalizing the above we Dr. Bajus because he has cost u8 the Mdse. and owes us for the amount of purchase. We Cr. Mdse. because we have given it out and it has produced us value in the shape of an account against A. Bajus. 6000 Bought of J. A. Baird on acct., 1,000 bus. Barley @ 50c In journalizing the above transaction we Dr. Mdse. because it cost value and is received into the business, and we Cr. J . A. Baird because we still owe him for the Mdse. which lie has produced to the business. Sold W. D. Ward on his Note at 10 days, 50 bbls. Flour @ $8.50, 200 bus. Barley @ 60c $425 120 In journalizing the above make Bills Rec. Dr., having cost us the Mdse., and Cr. Mdse. because you have parted with it. 6 Bought of L. A. Fell on my Note, No. 10, at 30 days, 2,000 bus. Wheat @ $1 In journalizing the above we Debit Mdse. because it has cost us value, and Credit Bills Payable because we have parted with our Note and it produced value. 700 400 500 545 2000 I |i —45— DAY BOOK.— Continued. April 8, 1886. i Sold Frank Phillips, on acct., 100 bus. Bus. Barley @ G5c, 200 bus. Wheat @ $1.25, ^ 05 250 For the above transaction we make the same Journal entry and for the same reason as in No. 3, except that we Dr. Frank Phillips instead of I3ajus. Sold Chas. Mitchell, for cash, 600 bus. Barley @ 65c In journalizing the above, make Cash Dr. because we have re ceived Cash, and Cr. Mdse. because we sold Mdse. and it produced value in Cash. 12 Received Cash of A. Bajus on acct., In journalizing this, we make Cash Dr. because we have received it, and C^r. Bajus because he lias paid us and produced value in Cash. 13 Bought of Geo. Allen, on acct., 1,000 bus. Barley @ 50c For the above transaction we make the same Journal entry and for the same reason as in entry No. 4, except that we Cr, G. Allen instead of Baird. U Paid Cash, For Office Furniture, For one Safe, $ 60 115 In journalizing this, make Expense Dr. because it cost us value, and Cr. Cash because we have parted with it. 15 Bought of Jas. Johnson, on my note at 20 days, 600 bbls. Flour @ $5 In journalizing the above, make same entry as in No. 6. 315 390 250 500 175 8000 -46- DAY BOOK.— Continued. April 18, 1886. W. D. Ward paid Cash for his note, due to-day, $ In journalizing this, make Cash Dr. because we received Cash, and Cr. Bills Receivable. You always Cr. Bills Receiv- able when you collect or otherwise dispose of another's Note or Time Draft. 19 Paid J. A. Baird Cash on acct., In journalizing the above, make J. A. Baird Dr. because we have paid him, and make Cash Cr. because we have parted with Cash. 23 Sold E. S. Wright, on his note at 60 days, 500 bus. Barley @ 65c Make the same journal entry as in No. 5. 26 Paid my Note due to-day, favor of L. A. Fell, in Cash, In journalizing the above, make Bills Payable Dr. because we have paid our Note, and it has cost us value. Cr. Cash because we have parted with it. 30 Paid one month's rent of store, Cash, In journalizing the above, we make Store Expense Dr. because it cost us value, and make Cash Cr. because we paid it out. I have this day taken an Inventory, and find unsold the following property 600 bbls. Flour @ $5, @ $1, @ 50c, 1,800 bus. Wheat 600 bus. Barley (g Office Furniture and Safe, Less 20 per cent., Total Inventory, $30(»0 1800 300 175 35 -$5100 140 $5240 545 800 325 2000 50 : —47- JOURNAL, SET II. 41. The Journal is a book in which to arrange the Debits and Credits taken from the Day Book, in a convenient form for transferring to the Ledger. Deciding upon and arranging the Debits and Credits in the Journal is called journalizing. The Day Book and Journal may be combined by writing the par- ticulars of the transaction in connection with the journal entry. The Journal may be dispensed with, and the posting done directly from the book of original entry to the Ledger, but for the sake of conven- ience and accuracy it is retained in use. There are different forms of Journal in use. The most common is ruled with double columns for Debit and Credit ; these columns may be increased in number, and are often used with advantage. 42— RULES FOR JOURNALIZING. General Rule.— Debit whatever costs value, or the thing received ; Credit whatever produces value, or the thing parted with. The Proprietor is Credited with all Livestments and with his Net Gain at the time of closing. He is Debited for his Liabilities brought into the business, for all sums withdrawn, and for Net Loss at time of closing. Cash is Debited when you receive Coin, Currency, Bank Bills, Bank Drafts, Certificates of Deposit, and Checks, or Sight Drafts in your favor ; Credited when you pay out or part with any of these. Bills Receivable. — Debit when you receive another person's Note or Time Draft ; Credit when you collect or otherwise dispose of an- other person's Note or Time Draft. Bills Payable.— Credit when you give your Note or accept a Time Draft ; Debit when you pay your Note or Acceptance. Merchandise.— Debit for its cost when it is bought ; Credit for what it produces when it is sold or otherwise disposed of. Personal Accounts. — Debit when a person buys of you on account, or when you pay a person ; Credit when you buy of a person on ac- count, or when a person pays you. -48- Interest and Discount. — Debit when you pay more for a Bill of Exchange, Draft or Note than its face, or when you part with any of these for less than its face. Credit when you pay less for a Bill of Exchange, Draft or Note than its face, or when you receive more for any of these than its face. General Principle — Debit when you pay Interest ; Credit when you receive Interest. Expense Account is Debited for items of outlay connected with the business, not charged to any general account, such as Rent, Fuel, Taxes, Gas, etc. It is Credited when anything is produced from that which has been chai'ged to Expense acct. Drafts. — General Principle — Debit the person who draws the Draft on you. Credit " *' on whom you draw a Draft. SPECIAL RULES FOR JOURNALIZING DRAFTS. drawer's entries. When hedraws a Draft and remits it to the Payee on acct. f *y^®' N .B.— His entry is the same whether it be a Time or Sight Draft- To Drawee. drawee's entries. When he accepts a Time Draft When he accepts a Sight Draft / Drawer. \ To Bills Payable. { Drawer, To Cash. payee's ENTRIES. When he receives a Time Draft (and has it accepted) \ ^ ^ T^^nrnli^'i \ To Drawer. When he receives a Sight Draft, (and it has been'ac- /Cash, cepted or cashed) \ To Drawer. Journalizing. — A proper understanding of the above rules, to- gether with the explanation given at the end of the Day Book, should enable the student to prepare his Journal without further assistance. We have, however, introduced the Journal, with the forms of entry for several transactions, and will leave the student to complete the set. i |i I —49— 43— FORM OF JOURNAL, SET 11. ACCOtlNTH DKBITKD. CCOUNTS CRKDITED. ' | ( ;')! Cash, GOOO ")) (Debited when received.) To A. L. Davis ( CredituI for In reMni't. ) \ 6000 i") 1 Merchiindise, ," 1 (J>r. when bom/ht.) To Cash (Cr. when paid out. ) 3 52 A. Bajiia, i")! (Dr. when he becomes in- To Mdso. debted to nx. ) ((;y_ „.^g„ .^q/,/ ) 700 400 700 400 ;")] Mdso., .'■Jl (/-''■ when boui/ht.) ;'] Jiills Recciviiblt^ .". ] (Jh: when recei red.) To. J. A. Baird (Cr. when we become in- delifed to him. ) To Mdse. (Cr. when sold. ) 6 — ■ol Mdse., 51 (Dr. when bonijht.) To Bills Payable (Cr. when (fir en out.) 8 52 Frank Phillips, 5 1 (Dr. when he becomes in- To Mdse. debted to ru.) (Cr. when wld.) 9 ^ {>i Cash, ' 51 (Dr. when received.) To Mdse. I I- (^''' "'Ae« foW. ) 12 51 Cash, 52 (Dr. when received.) 500 545 2000 816; 890 t I To A. Bajus (Cr, when he pays m on — '}-~ acrt.) . ij 360 500 545 2000 815 890 250 The student will make out tlie Journal entries to complete the aet. —50- LHDGER. 44. The Ledger is tho book employed for collecting from the Journal and books of original entry under their respective titles tho Debits and Credits belonging to the several accounts arising in one's business. The transferring of these Debits and Credits and placing each in its proper place under its proper title in the Ledger is called Posting. 45.— DIRECTIONS FOR POSTING. Having Journalized all the transactions, your next work is to carry them to tho Ledger or Post them. The Ledger is usually opened by placing the Proprietor's Name at the top of the first page, followed by tho most prominent accounts. In this set the order will be : A. L. Davis, Cash, Merchandise, Bills Eeceivable, Bills Payable. A. Bajus, J. A. Baird, Frank Phillips, Geo. Allen, and Store Expense. Under each of these accounts you place all the items that belong to it as found in the Journal, transferring the entries from the Journal to the Ledger in the order they occur. Our first Journal entry reads — Cash $6,000 To A. L. Davis .$6,000 In posting this entry iv Oash account in your Ledger and on the Dr. side enter April ^ date column (the explanation column will be left blank in *' ti^^r), next in the Journal page column enter the page of „ Journal, and in the amount column enter the amount, $6,000. Next turn to A. L. Davis' account. On the Cr. side enter April 1 in the date column, the Journal page in its column, and in the amount column the amount, $6,000. In the Journal, opposite the entries, you place the page of tho Ledger on which the accounts have been entered. -51 Dr. Date. KxpUnallon. 46-.FORM OF LEDQER-SET II. A. L. Davis. Date. Explanation . Journal i'uiie. 1886 Ap'l I Cb. Journal Page. ,:i ttOOO Cash. 1SS<> Ap'l 1 » 12 18 »!• (i(KK) »'.! .SJM) I'.i 2ni) r)4.-) ( IHSd A pi 2 14 H> 20 JU 700 175 30<) 20()() •A) 1880 ^p'l 2 4 6 13 15 Mkrcii AN DISK. - . - )S86 Ml 700 Ap'l .S ♦!• 500 5 til 2000 8 500 » .*i()00 2M 4il 400 4<> 545 4!i 315 4!l 390 325 1880 Ap'l 5 23 1880 Ap'l 26 Bills REfKiVABLK. Ill 545 325 1886 Ap'l 18 Bills Payable. 1886 2000 Ap'l 15 545 4ii 2000 I 3000 I —52— T)r. Date. 1886 '~ Ap'l 3 FORM OF LEDGER— SET II (Continmd) A. Bajits. Date. Journal Explanation, Page. H) 400 1886 Ap'l 12 Cr. Journal Explanation. Page. )!l 250 1886 Ap'l I) J. A. Baird. 300 1886 Ap'l 4 t:t 500 1886 Ap'l 8 Frank I'lULurs. 4!i 315 1886 Ap'l 14 30 Geo. Allen. 1886 Ap'l 13 ■■ I Store Expense. 175 50 500 250 5()0 hoo —53— TESTING THE LEDGER. 47. After posting all the transactions to the Ledger, a Trial Balance is taken to test the correctness of our work. This is done by adding up the items on the Debit side and also on the Credit side, of all the accounts in the Ledger, placing the amounts in light pencil marks, which may be erased when the work is com- pleted. The Debit and Credit footings of the different accounts are carried to the Trial Balance as per form, page 54. When the total footings are equal the test is considered satisfactory. The Trial Balance, however, is not a conclusive test of the cor- rectness of the Ledger. Errors may exist which do not affect the equality of the Ledger, such as the omission of one or more Journal entries ; posting an item on the right side but under the wrong ac- count ; reversing an entry, e.g., Mdse. Dr. to Cash when it should be Cash Dr. to Mdse. DETECTION OF ERRORS. 48. We think the only true way to discover errors in a Trial Balance is by a careful examination of the work from the date of the last Balance. If, however, there be but one error in the work, the follow- ing short tests may detect it : — First— If the error be an even $1, $10, $100, $1,000, etc., check the additions of the Ledger accounts and of the columns of the Trial Balance. Second— If in your Journal or other books from which you have posted there be an item of the same amount as the error, check the posting of that item. Third — If in your Journal or other books there is an item one-half the amount of the error, make sure that it has not been posted to the wrong side of the account. i Fourth— If the error be divisible by 9 it may be the result of a transposition of figures ; as, 35 written 53. In all such cases the error will be divisible by 9. If, having applied these tests, you are still unable to discover the error, examine carefully the Journal entries and see that the Debits and Credits are equal. Then see that these Debits and Credits have h —54— been transferred to the Ledger correctly. Each item when examined should be marked thus, |/, in the Ledger. If, after thus checking the work, you find an item not checked you may conclude that it has been posted twice. Trial Balances are usually taken in business every month. The oftener Balances are taken the easier it is to find and correct errors. 49.— TRIAL BALANCE— SET IL Li ser Accounts. Dr. Cr. A. L. Davis 6000 Cash 7185 3225 Merchandise (Inventory $5,100) 6700 1975 Bills Receivable 870 545 Bills Payable 2000 5000 • A. Bajus 400 250 J. A. Baird 300 500 Frank Phillips .315 Geo. Allen 500 Store Expense (Inventory $140) 225 17995^ __ __ 17995 __ STATEMENT OF RESULTS. 60. Having ascertained that the two sides of the Ledger are equal, the Student should next make out a statement showing the results of the business. The Ledger accounts contain all the material necessary to furnish these facts except the value of property on hand. At stated periods, generally once a year, business houses suspend busiuess for several days and make an Inventory of all unsold property— "Take Stock," as it is called. In the present case the Inventory of Mer- chandise may be found by referring to the purchases and sales recorded in t)ie Day Book. The ofifioe furniture and safe charged to Ex])ense Account on the 14th may be Inventoried at cost less 20%. , ,. <1 J V —55— 51.— TEST STATEMENT— SET II. RESOURCES. Cash Merchandise Bills Receivible Office Furniture and Safe A. Bajus Frank Phillips Total Resources LIABILITIES. Bills Payable J. A. Baird Geo. Allen Total Liabilities Present Net Worth GAINS. Merchandise Total Gains LOSSES. Store Expense Total Losses Total Net Gain A. L. Davis' Investment " Net Gain " Present Worth 3960 5100 325 140 150 315 3000 200 500 375 85 6000 290 9990 3700 6290 375 85 290 6290 The preceding Ledger shows the accounts in their current condition from which the Trial Balance has been taken, and the important facts in relation to the business have been shown in the Test Statement. The Ledger of the Model Set, which follows, will illustrate the closing of these accounts as they are closed in actual business. SET III. MODEL DAY BOOK. Examine this form, nofiug closely the wording and arrangement of each entry. The Journal form for this Day Book will be found on pages 05-07. HECTOR JACK, 241 Brock Street, Kingston, Ont. "58- May 1, 188G. Leased of Ira Folger, the store 241 Brook street, Kingston, Ont., at $300 per year, payable montlily in advance, for the pur- pose of conducting the Produce Business. ».'M8 y Capital invested on c bhis. Extra Flour («i .$10.r)0 ]/' 100 Ima. Wheat f«: 1.-37^ 10 - ^^ Paid C. E. Mr)nfort'8 bill for ropairs, and ]/ Sign, with (^ash _ 11 Uought of S. a. Rarrett, Toronto, for Check No. 1 on IJauk of Comuierce |/ 1,000 bus. Wusteru Oats, delivered, @ 2;>c -.12 Sold James Lowe, Perth, Out., for his Note at SO days |/ 30 bbls. Extra Flour (a. .^9.50 15 Uought of S. B. Fine, Ci)mwall, Out. , for my Note at 30 days 30 l)bls. Ashtou Salt @ .$3.00 j/ I'aid freight with Cash 17 Sold W. H. Graham, Newburgh, Out., for his Draft at 30 days' siglit on A. Reed, Po'keepsie, N.Y. y oaO bus. Western Oats, f . o. b. , @ 40c 18 Accepted L. A. Fell's Draft at 30 days' sight, ]/ favor of L. F. Bardeeu, for 19 (Jave my Check No. 2 on Bank of Commerce to D. B. College Insurance Co., for Insur- ance on my stock of Mdse. , (Policy No. 1(5,840,) for $3,000 @ 1 % ]/' Policy and Survey Bought of (t. p. Clough, Lyn, Ont., for my Draft at sight, on A. F. Ferris, Prescott, Ont. 40 bbls. New Process Flour (a $8.00 l' Paid freight with Cash 262 50 137 50 400 29 90 10* 30 1 25 320 20 260 28S 100 220 180 31 25 340 — 6o— May 21, 1886. Sold A. F. Ncwlands, Toronto, on aoct. 30 l)l)l8. Kxtra Flour (d\ $10.0() ]/ 30 " Ashton Suit @ 4.00 300 120 350 420 Paid iny Note, No. 1, favor S. B. Fine, with V Cash ' 24 Bought from T. L. Woodruff, Toronto, on my Note 50 bbls. Family Flour @ .$10.00 18 " XX A " @ 10.00 ]/ Paid Freight and Cartage with Casli , - 25 Sold Wm. Gardner, Kingston, Oirt. i 50 bbls. Family Flour @ $1 1.(58 I 18 " XX A " @. 12.(M) i Received his Check on City Bank, for }/ And a Sight Exchange on Toronto 28 Received Cash of Jas. Lowe in full for his j/ Note of Pith inst., my favor i . 27 Bought of Wm. Elder, Trenton, Ont., on acct. 1 400 bus. Spring Wheat @ $1.00 400 " Western Oats @ 50c Paid Freight and Cartage with Check No. ' ]/ 3 on Bank of (Commerce Sold H. Cormack, Napanec, Ont., on acct. 30 bbls. New Process Flour Tg), $9.(K) ]/ 250 bus. Western Oats @ 30c 500 180 20 584 210 500 300 400 200 40 270 75 tH) 700 800 285 640 345 ^ Paid with Cash sundry items of Expense 29 Sold W. H. Graham, Newburgh, Ont., for Cash 400 bus. Spring Wheat @ $1.50 |/ 400 bus. Western Oats @ 62^c 600 250 ,l! . I 8;30 -6i— .Til May ;«), 1880. Remitted Win. Klder, Troiitoii, Out., my Check, No. 4, on Hank of Conunerce, to I apply on a cut. 450 Paid Caali for cleaning store and other items I of Kxpense «'. 7-) Received of A. F. Ferris (Jheck on City Bank I / to balance Ids acet. :n y Deposited in Hank of Commerce, Cash 80 20ay. " Casii ■ To Mdsc 420 00 700 800 20 420 90 080 20 800 ^ .841(5 25 8410 25 144 -68— May 20, 1886. Dr. Cr. 231 Cash, 233 232 Mdse. , 234 231 H. Cormaok, •2:\ 1 Store P]xpense To Bills Rec. 27 To W. Elder " Hank of Commerce 2a To Mdse. 2:j1 Cash, 231 233 VV. Elder, •^32 To Cash 29 To Mdse 30 To Bank of Commerce •J.SJ Store Expense, 231 285 640 345 850 450 285 600 40 34") 8.")0 4r)0 To Cash 6 75 •231 Cash, '2-M To A. F. Ferris 31 •2',i'2 Piank of Commerce, •2:i I To ("ash 80 2n(K) 80 2000 •23.S L. A. Fell, 23;i To A. F. Newlands 320 4983 320 75 4083 75 • ^'^. SET III. MODEL LEDGER. Thoroughly nncWana the form of the Ledger and process by which It IS opened and kept, as explained on pages 76-78. Trace .are fully each posting ft-om the Journal to the Ledger, and then back from the Ledger to the Journal, and so tell what were both Journal and Day Book entries. HECTOR JACK, 241 Brock Street, Kingston, Ont. 70— INDEX— MODEL LEDGER. W A. E I u Y A B B'nk of Coin 'rce 232 Ba'ance Acct. 234 Bills Rec.231 Bills Pay.232 C Cash 231 Corinack,H.234 D 1 ! E Elder, Win. 233 ■ F Fell, L. A. 2:3;) Ferris, A. F. 2:);t Furniture & Fixtui 1 233 G H i ._ __ I& J Jack, H. 231 Insurance 232 K 1 L Loss & Gain 234 91 Merch'dse 231 N Newlands,AF2;M ■ 1 O P 1 1 1 . 1 Q R Real Estate 234 S Stationery 232 Store Exi)en8e232 T ■ ■ - V w ' XY I)K. —71 — Hiccmm Jaok. Cr. !88(i: I May 31 To P>iiliiiice •)Ha() 20 r)656 20 1886 I May 1 By Sunds. " Loss & (iain »2.11 ( 1 fj 5000 'J.ii 656 20 5656 20 Cash. 1886 _ . - . .- . - - — 1886 .-- _ — May 1 To Hector Jack 1 i-_> 4500 Mav 1 By Store B^xpense 142 25 3 Milse, 142 150 a (( Stationery ll'J 20 25 (4 14.S 800 i( (( Store Expense 142 11 26i Bills Rec. \U 285 (( (i Mdse. 112 800 29: Mdse. 144 850 3 " Sundries 142 62 80 30 i A. F. Ferris 144 80 Mdse. B'k of Com'rce IJ2 1 42 75 3000 t ■ 10 " 15 " 20 " 22 " 24 " 28 " 30 " 31 " 31 •• Store Expense Mdse. Bills Pay. Mdse. Store Expense B'k of Com'rce I'.ilaiici- 1 42 143 143 u;{ 143 144 114 144 29 10 20 90 20 7 6 75 2000 488 45 66()5 M KHon 6665 ANDISK. 1886 1 1886 : I 1 May ITo Cash 142 800^ May 3BvCash 142 150' 3 Sundries 142 575 4 " A. F. Ferris 142 400 n B'nk of Com'rce 143 250 12 " Bills Rec. 143 285 15 Sundries 143 100 17 " (C 1 4.3 220 20 (t 143 340 21 " A. F. Newlands 143 420 24 i( 143 700 25 " Cash 143 800 27 (( 144 640 28 " H. Cormack 144 345 .SI hoaa ami ( iiiiii 234 .")!).') 29 " 31 •> Cash Inventory 144 850 40(M» i \ 4000 BlIJ.S RKCKlVAlil.K. 1886 ■ May 12 To Mdse. 1 143 285 143 220 i 1 i 505 1 \ _-_. =11 188(5 May 26 By Casli .'t I •• lliilance 144 285 60S First page of fjpilKur. • I 232 Dr. —72— Bills Payable. 1880 May 22 To Casli .'{) ■• il.ilanrc 143 90 il 950 1880 May 15 By Mdse. 18 " L. A. Fell 24 " Mdse. Cr. 1 4:! 90 I4;{ 180 i V.\ ()80 950 Bank of ( ^'ommekce. 1880 Mav 3 To Cash 31 " " t 1 }-2 3000 in 2000 1886 xMay 1 11 By 19 " 27 " 30 " ;5i •• Mdse. Insurance Mdse. Wni. Elder IJalaiicc 143 14.-! 144 144 1 1 ' 250 31 25 40 450 4228 75 joOOO J "'""1 50(M) Store Expense. 1886 May 1 To Cash 3 " " 10 " " 28 " " 30 " " i 142 25 |I42 11 142 2 80 142 29 144 7 144 6 75 IS.SCi May 13 Jly i ; Lds.s ami <;aiii 234 ■ 81 .V) 1 1 i 81 55 ~— 81 55 Insurance. 1886 May 19 To Bank Connnerce I t.f 31 25 1 NSti Mav :{l I'.v i.nss and (laii, 234, Stationery. 1886 May 1 To Cash 1 42 20; I88«! Mav 31 l!v Loss .iiid diiii 234,! 20; "I 'II J>R. 188H •May A To C'aali —75— m FURNITUKE AND FiXTUKES. '' '^ I ISMi 11." (JO I Mas ;{| ];>. liauiruiv 233 Cb. 00 LosM aim (uiiii 'i'U t) • I (to L. A. Fkij.. 188«) May 18 To Bills Pay 31 •' A. F. Newlands '^i 180 • I 320 500 [1880 May 3 By Mdse. 1-t-' 500 500 1886 May 4 To Mdse. A. F. Fkrris. t-' 400 400 188« Miy 20 By Mdse. 30 " Cash '-»;« 320 lU 80 ) ' I 400 1880 May 21 To Mdse. A. F. >fE\VL.\Nns. I.i 420 1880 May 31 By L. A. Fell 420 iU 320 100, 4201 1880 May 30 To Bank Commerce • >1 " iiuiaiii-i' Wm. KhUKR. ( ■_ ce i I I 4r)0 I.IU (WO 1880 May 27 By Mdse. in 600 (MX) IIT^T '■ I 234 Dr. 1886 May 28 To Mdse. —74— H. CORMACK. 345 |SM(i \la\ ;{| I'.v lliil.nuc Real Estatk. 1886 May IToH. Jack -2:11 500 ;i 'I (. Los:. ,111(1 (:,iiii 2;>4 2011 roo Mils '.W lis lii\ tiitiir\- Loss AND Gain. 1886 i jl88ti May 31 To Store Expense 2:^2 81 55 ( May 31 IJy Mdse. " Insurance 'SA2 31 25 ( " Real Estate " Stationery •-';!2 20 " Fur'tiire & Fixt's 2;W 6 " H. .lai.-k 2;il ().->() 20 795 Balance. 1886 May 31 To Cash 2,!1 488 45 " Mdse. ■ 2.! I 530 " Bills Rec. 2:il 220 " B'k of Com'rce 2; 12 4228 75 " Fur'tiire&Fixt'a2.;:i 54 " A. F. Newlands2;:; 100 " H. Corinack .'; : 345 " Real Estate 2 ;i 700 6666 20 1886 May 31 liy Bills Pay. " Wm. Elder " H. Jack Cr. 345: 7(M» 700 144 695 1 12 200 795 2:!2 860 2.!;; 150 2;!1 5656 20 6666 20 75- 54-TRIAL BALANCE. • KA(!E OK LKIMiKK. n.VLANCES. J^r. Cr. Dr. Cr. •-'.'! I Hector Jack . --^ww. ^'^""^ fififir, 6176.", 488 45 -'■•!l Mdse. iln.,„i,.,A s.-,M(), . , . . ;ho.-, .3470 65 -'" ^^"« Receivable 500 285 220 23L' Bills Payable on n-n •->■- Bank of Commerce 50OO 771 25 4228 75 •-'.TJ Store Expense gl 55 81 .55 •J;J-J Insurance 3135 3,25 ;.\;2 Stationery 20 20 2;i;< Furniture and Fixtures lux ty .•ri.H) 60 60 -•■'•' ^- *'• Newlands 420 32O 100 2:."::Wm. Elder 450 ^oo ,50 '-'•!' H. Cormack . 04- • „.. -•'il Real Estate ilinciit(rry s7ii(h r^(^ ' -^ -■- 17572 80 17572 80 6075 6075 In taking a Trial Balance we omit those accounts that balance in the Ledger. Thi« saves labor and shows that the Debits and Credits are equal as well as though all the accounts were represented. In the above form we have extended the Balances, the Debits and Credits of ■which must also be equal. nil , :l ' I I ! il -76- TKST STATEMHNT-SKT III. •';;i Caali Mdse Bills iiank Furni A. F. H. (:< Real UKSOIIU KS. 4.SH 45 75 mm •'HI 220 4228 •i.-i 1 Rec. of (yoimner ture and Fi Newlands )iinack Estate ce •j;i:t •->:ii xtnres 54 . . KM) . . 70<) Total Resources . mahimtieh. 20 •2:V2 •2Xi Bills Pay . • 800 Wm. B:ider 150 Total Liabilities . 1010 Net Capital .... 5056 20 -- - - - GAINS. •->;{l Mdse •J.ll Real Estate . . 595 . . 200 Total Gains . . . . 795 -- - -- - LOSSES. "i.S'J store Expense 'i.'i'i Insurance •_'.'>■-' Stationery ■-'.'>' : Furniture and Fxturea . . 81 , . 31 . . 20 . . (5 55 25 - Total Losses. 138 80 Net Gain (>5(> 20 •j;ii H. .lack's Investment 5000 Net(}ain (t."»(V 20 It t( " Gapitiil 5(55() 20 55. — A Balance Hheat, or Test Statement, is usually made cut for the purpose of showing, in a condensed form, the present condition and the progress of the business. The Statement above is less complex than those usually given, and exhibits, in a convenient form for reference, all the important facts relating to the business. The work of compiling this Statement has already been explained. _77— CLOSING THE LEDGER. '20 20 •20 lit for Iflition n, and facts It has 56. Ledger "A" shows the accounts in an open or current condition, from which the Trial Balance has been taken and the important facts relating to the business shown in the Te-t Statement. If you simply wish to know the condition of the business, this will be sufficient ; but when the object is to mark a new era in the business, as the beginning of a new year, the admission of a partner, or the opening of a new Ledger, the accounts must be "closed." The Model Ledger will illustrate the closing of these accounts as they are closed in actual business. The method of closing separate accounts has been shown already in the preceding Exercises. Pre- cisely the same course is to be pursued here with the several accounts, but an additional step is to be taken by Transferring the Resources and Liabilities, Gains and Losses, from the accounts in which they are found to the Balance and Loss and Gain accounts, which are opened in the Ledger. The Student has already learned that the Double Entry Ledger contains two classes of accounts : 1st. — Speculative Accounts, showing the progress of the business by representing its Losecs and Gains. 2nd. - Non- Speculative Accounts, showing the present condition of business by representing all its Resources and Liabilities. Upon examination it will be found that Losses are shown by an excess of the Debit side, and Gains by an excess of the Credit side of Speculative accounts. Resources are shown by an excess of the Debit side, and Liabilities by an excess of the Credit side of Non- Speculative accounts. DIRECTIONS FOR CLOSING ACCOUNTS. I. — Open an account with Loss and Gain and another with Balance following those already open-^d in your Ledger, the former to contain the Losses and Gains, the laiv ^r the Resources and Liabilities. k -78- n I'M !iii I II. — From the Inventory at the end of the Day Book find the value of unsold goods, which amounts you enter on the Credit side of the accounts to which they belong, in red ink, and on the Debit side of Balance account in black ink. The accounts are now in a condition to close, and we will take them in their order. III. — Omit the Proprietor's account, commencing with the next that follows. Place on the smaller side of the account the ditference, in red ink, "To Balance," if the account shows a Liability ; "By Balance," if the account shows a Resource, or "To T s and Gain" when the account shows a Gain, and "By Loss and Gain" when the account shows a Loss. IV. — Transfer these difterences to the opposite side of the account into which they are closed in black ink. V. — The Loss and Gain account will now show, on the Dr. side, all the Losses, and on the Cr. side all the Gains. The "Balance Account" will show, on the Dr. side, all the Resources, and on the Cr. side all the Liabilities, the difference being the Present Worth of the Pro- prietor. VI. — Close the Loss and Gain account by entering on the smaller side in red ink the Proprietor's name and the difference between the sides, which will be the Net Gain or Loss. Carry the difference to the opposite side of the Proprietor's account in black ink, using "Loss and Gain" for explanation. In case of partnership the difference should be divided according to agreement, and each partner's name and share entered in the Loss and Gain account and afterwards trans- ferred to the opposite side of his account. VII. — Proprietor's account will now show the original investment, increased by the Gain or decreased by the Loss, the difference being the Present Net Worth. The difference of Balance account also shows the Present Net Worth, hence they must agree. Close Proprietor's account into Balance, which should make the two sides of that account equal. This will complete the closing of the Ledger, and shows in a condensed form the present condition of the business. 79- REVIEW-GENERAL PRINCIPLES. tment, being I shows the of the I of the 1. Explain " Double ; Mvy."^ 2. How distingiiiHheil iioni Single Entry?* 8. What are the advantages of Double Entry over Single Entry ? ^^ 4. What are the principal books used in Double Entry?* 5. Describe the Day Book. *^*° 6. Explain the use of the Journal. *^ 7. Give general rule for journalizing. *^ 8. Apply it to Cash, Mdse., Bills Receivable, Bills Payable, Per- sonal Accounts, Interest and Discount, Expense.*^ 9. Give general rule for journalizing Drafts. ** 10. What is the Drawer's entry in a Time Draft ?" 11. 12. 18. 14. 15. Drawee's Payee's Sight Time Sight Time Sight 44 IH. Explani the use of the Ledger. 17. What is Posting?" 18. What is the object of the Trial Balance ?« 19. How would you detect an error in it ?*^ 20. Does the Trial Balance prove the posting correct ? *'' 21. Explain the use of an index to a Leager. ''^ 22. When and why do you close a Ledger?"^ 28. What accounts are used in closing the Ledger to group the closing entries ?"* 24. What is done with the Inventory at time of closing ?'^ 25. What is the order of closing accounts in the Ledger ?''^ 26. What does the Debit side of Loss and Gain account show ?** 27. •' " Credit '* " " " " ^ 28. How does Loss and Gain account close ? "^ 29. What is entered on the Debit side of Balance account ? ^ 80. " '• " Credit '• " <« se 31. What does the difference of the two sides agree with ?^ 82. How is Balance account closed ?** 88. Explain the use of the Balance Sheet, or Test Statement."*'* ^:i illl! ! I I I i Ill i! !; I ; ! .— .^.i.l../,w^»^. SET FOUR. Note. — In the following Set we have used as a basis fox- the business the Resources and Liabilities as shown by the Statement in Set I, Single Entry. Our object in doing so is to enable the Student to understand morp fully the pro- cess of changing from Single to Double Entry. The student will copy the fol- lowing transactions for a Day Book to Set IV. ; after which, Journalize as in the Model Form, paging the first page of .Tournal 170, the first page of Ledger 432, and the Day Book 374. Tlie paging sliould be continued from those of this set, through the following sets, leaving between each set a blank leaf for name of firm and place of business. Bii* SET FOUR. ISRAEL TAYLOR. 132 Sr.\RKs Strekt, OTTAWA, ONT. The above cai'd should be written on tlie first blank page of Day Book, Journal and Ledger. Commence wrifiiKj on third pcuje. Study well the rules found )n pages 47-48. ii TW I I i!! Hi in f I 1: ( I Hi i !i M^ -82- January 1, 1886. Leased of VV. K. Ovens, the Store at No. 132 Sparks street, at .ffJOO per year, for the purpose of coniliicting the Dry Goods and Cirocery Business, with the Resources and Liabilities from Set I, Single Entry. Resources — Cash on hand Mdse. unsold Bills and Drafts VV. A. Wilniot on acct. Liabilities — N<)tes outstanding per Bill Book Due M. Ryan on acct. •' I. N. Wilson on acct. " J. A.^Greenwoid on acct. In mflkinf; the above Journal cnt'-.v, debit the Ro.sourcea to the Liabilities, and to the Proprietor for the dif- ference, because this difference is tlie amount really inveMttd ))y him. Bought of Wni. B. Dunlop, Perth, Ont., on acct. , 50 bbls. Flour (a $6 Paid I'^reight and Cartage with Cash ^ 3 Paid for two tons Coal for use of store with our Sight ^Draft on W. A. Wihnot Bought of Percy" Lambert, City, on acct., 2 pes. Broadcloth, ^, 40 yds., @, $3 ___ G Sold Sidney McKim & Co., Newburg, Ont., for C^ash 25 bbls. Flour (a. $8.50 Paid sundry p'nvate expenses with Cash Sold W. H. Miller, lirockville, Ont., on acct. 25 bbls. Flour (g_: $5.50 8 Rec'd. Cash for T. Marsli s note iu our favor 2106 37 3400 77 30 15 50 5599 1060 153 75 190 74 1477 1 1 300 10 50 310 15 120 212 10 137 14 17 75 50 50 50 50 80 -83- January 9, 1886. Deposited in Merchants' Bank, Cash 10 Paul Percy Lambert, in full of acct. , Cash 12 Boiiglit {of Fred Thompson, New York, for my Clieck, Xo. 1, on Merchants' Bank, 7r)0U)s. Wliite Suffiir fe 12c Paid Freiglit and Cartage with Cash 113 vSold V>. Armstrong, Napanee, Ont., for_^hia Cneck on City Bank, 1 pc. Broadcloth, 20 yds., @',$2.7r) 14 Bought on commission for Wm. Gardner, Kingston, Ont., 500 bush. Corn, for which lie paid me Cash Bought of R. S.^ Wright, City, on my Note No. 1, at 30 days, 50 boxes Raisins (a $li 15 Sold \N'. H. :\IiHer, liro.kville, for Check, All the Mdse. in the store at Kingston, as per inventory, for Paid our Note, favor of T. Keenan, vvith Cash Ki Sohl Wm. Fee, Newburg, Ont., for his Note at 4 montiis GOO lbs. Wliite Sugar (w 12ic i: Bought of Oscar McKim. Toronto, for Note whicli 1 hehl against W. H. (iraliam 5 pieces Silk (cv $]~) Paid freight and Cartage with Cash 19 Paid for Ins. on Md.se., in .Etna Ins. Co., Hartford, Conn., (I'olicy No. 875,) for $500 (a- 2% Cash 2000 120 90 4 25 94 55 5 150 3560 960 75 75 I 50 76 10 25 50 I! t !' % f^il -84- January 20, 1886. So'. I A, M. Morris, Prcscott, Oat., for his Note at 30 days f) pieces Silk Cqi $15.60 Had my Note No. 2, at 30 days, discounted at Merchants' Bank, and net placed to my credit. Face of Note Discount Proceeds 21 Paid W. K. Ovens, on acct. for Store Rent, Cash 22 Lost by lire, 1 pc. Broadcloth, 20 yds. ^Etna Ins. Co. assumes the loss, at 23 Bought of J. A. Greenwood, City, on acct. oO pieces Alpaca (673 yds.) (a 28c 24 Sold M. Ryan, Montreal, on acct. 32 boxes Raisins Cm $3.50 26 Accepted J. A. Greenwood's Draft (qi o days' sight, favor Fred. Fisk, Chicago, 111., for Bought of Fred. Vanluven, Cornwall, Ont., for my Check No. 2 on Merchants' Bank, 10,000 lbs. Hops @, 15c Paid Freight and Cartage with Cash Had .las. Graham's Note, our favor, collected through Merchants' Bank, proceeds placed to our credit Face of Note Collection Fee Proceeds Dr. Cr. 5 1000 78 53 1005 53 1600 71 20 50 188 44 112 180 25 1571 25 61 63 87 62 50 ni'iiiiii'iii'irM i ' ,L ' . - isma TO THE STUDENT. Wc are taught in this science to look beyond persons for our debtors and creditors, and to recognize them in thinr/s also with which we are dealing. When a person owes us, we do not hesitate to say he is our debtor. Tlien why not give the same application to things, treating them the same as debtor and creditor ? You cannot too care- fully study the 7?w7^s just passed, and their application in the Model Day Book, Journal and Ledger, for in them will be found the key to success in Double Entry Book Keeping. Each rule has a meaning and purpose, which should be sought after with dilujence and earnest- ness. It needs but a strong determination to overcome the difficulties arising before you in this Course, and with a sufficient amount of it, you will gain a signal victory over this important science. The preceding matter, as the elementary principles, is to act as your guide through the Theory of this interesting science. You should not hesitate to dive deep and search long, in order to gain that know- ledge which has started so many on the road to success, and made them injiuentud, neaUhy citizens. \\,\ I?. i Hi 6 » != .■^„.,.^MitMM : SET FIVE. On opening the Journal of Set V., you should carefully study the application of the rule, Dr. whatever costs value, and Cr. whatever PRODUCES VALUE. By referring to the Balance Account of Set IV. you will find that Israel Taylor invests in this Business his net Capital on closing in Kingston. All things on hand, and persons owing him, must be Dr. to him. And as the firm assumes his Liabilities, Mr. Taylor is Dr. for the amount standing against him, observing same rule with every subsequent partner when taken into the firm, also each partner should be credited for all additional investments he may make. You should give the opening of this Journal your particular atten- tion ; an understanding of it will be of incalculable advantage to you in solving the many difficult problems that follow. 1--I SET FIVE. ISRAEI, TAYLOR & CO., 84 Kino Street, Toronto. The above card should be copied on the blank leaf after Set IV. in Day Book, Journal and Ledger. 'f —90— February 1, 1886. Israel Taylor and Fred liootli liave this day formed acopartuersliip to oondiiot tliu Dry (Joods, (ii'ocery and Sliippiiij^ Ijuaincss, at No. 84 King St., Toronto. Tliey are to share and sustain equally in gains and losses. Israel 1'uylor invests (as per Kalance Acct., Set IV.) Cash on liand Mdse as per Inventory A. M. Morris's Note at .30 days from -Jan. 20th, 1882 I. N. VVilsmi Merchants' Bank, on acct. H. W. Miller The Firm assumes for I. Taylor the following Liabilities : Sundry Notes (per B.B.) W. K. Ovens on acct. W. B. Dunlop " J. A. Greenwood on acct. M. Ryan " Fred Booth invests : Cash Mdse. as per Inventory Store above mentioned, valued at Bought of T. Kenney & Co., i^ity, on acct., 30 days, a Safe for office Paid Arnold & Co., City, Cash for bill of Fur- niture and Fixtures for store and office 2512 470 78 1190 1471 J. 37 1185 30 300 82 101 1000 1500 3000 42 44 87 50 53 44 75 5860 23 1699 5500 72 125 /o Paid ('ash for painting and cleaning the store, and sundry other items of expense for store 45 50 Bought for Cash, set of Blank Books, Paper, Pens, Ink, &c. 23 50 -gi — I-'KliHt'ARV ;{, 1880 Paid with Cash, (irccnwood's Draft, favor Fred. Fisk, accopted 'iUth Jan., for Bouglit (if .T. Allen, Newlmiy, Ont. , for our Note No. 1, it 00 . 1%, in D. B. College Insurance Co., Kingston, Ont., under Policy No. 2(),785. Gave our Check No. 1 on City Bank Sold W. K. Ovens, City, on acct., all the Mdse in the store, 132 Sparks Street, Ot- tawa, as per Inventory, Set I, for 10 Engaged Wm. Hood, as accountant, Co) $\8 per week Also as salesman, F.Playfair (« $14 per w'k And J. P. McDonald @ ^10 " 11 Received of Lord & Taylor, New York City, per our oi-der 200 pieces Sheeting, 8,000 yds. @, 15c Paid Freight and Cartage with Cash 180 676 15 20 50 091 48 875 1000 97 1875 1775 55 430 1200 4 50 1204 97 50 lir ill: IMAGE EVALUATION TEST TARGET (MT-3) // r/. 1.0 1.1 11.25 L^|2.8 ^ us, IX 2.2 2.0 I lyui- MM U 11.6 — A" V] VQ // '/ /^ Hiotographic Sciences Corporalion 23 WIST MAIN STREET WEBSTER, N.Y. 14560 (716) S72-4S03 \ iV ^v s? ^s 6^ "'"^y^ ^ v/-:«%^. ill 'it I i'l —92— February 11, 1886. Sold A. L. Duvis, City, for his Draft at 30 days' sight, on Park & Co. , New York City 4 hhd9. Sugar, 4508 lbs. @ 10c 15 Received fromH.W. Milfcr, Brockville, Ont., in settlement cf his account, 2 shares C.V. R. Stock 18 Sold Frank Philips, Port Hope, Ont., for his Check on Bank of Montreal 2500 yds. Sheeting (s 20c 20 Deposited in City Bank, F. Phillips' Check on Hank of Montreal for 21 Bought of O. E. Potter, Winona, Minn., on acot. 600 bus. Wheat, inv. @ $1.50 Paid Freight on same wirh Check No. 2 on City Bank 22 Remitted Lord & Taylor, New York City, our Draft at sight on I. N. Wilson, Perth Cash for balance of acct. Had I. Taylor's Note No. 2 (assumed by the firm), and due this day, charged to our account at Merchants' Bank Face of Note 24 Sold E. Gaulin, Deseronto 4 hhds. Sugar, 4508 lbs., @ lie 40 pieces Sheeting, 4000 yds., @ 19c Received in payment : O. E. Potter's Sight Draft on us in their favor, for The balance on three months' time 27 Sold E. P. Dunn, Deseronto, at 30 days 300 bushels Wheat @ $2 900 48 450 80 137 50 500 500 948 1190 10 1005 53 495 760 660 595 88 88 1255 88 600 —93— March 1, 1886. Bought of Frank Oliver, Bath, Ont. 600 bus. Wheat (a- $1.75 800 " Oats @ 75c Gave in payment, R. McConnell's Draft on Park & Co., New York City, due 16 Mar., @2%Dis., Face of Draft $450 80 Discount, (0)2% 9 02 Gave our Note No. 2, at 30 days, for and Check No. 3, on City Bank, for balance 1050 600 441 500 708 78 22 1650 Sold Tho8. Naylor, London, Ont., on acct. 600 bus. Wheat, invoiced, @, $1.80 1080 Pre-paid freight a.id cartage. Cash 40 1120 m ff Paid T. Kenney & Co., City, in full of acct. with Check No. 4, on City Bank 125 Sold John Ferguson, Spencerville 300 bus. Wheat, @ $2.10 Received in payment, his Draft, at sight, on D. J. Adams, City 6 Sold, our Exchange on London, received 6th ult. Face of Exchange 875 Premium 18 Received in payment, 1 bale Carpeting for Fred Booth's family, as per bill 594 Horse for use of business, worth 200 Waggon, valued at 100 97 21 18 630 894 18 Deposited in City Bank, our Check No. 1 , on Merchant's Bank, (to close account), for 466 34 Also, Ferguson's Sight Draft on D. J. Adams, for 630 1096 34 Paid the following persons on account of ser- vices, Cash W. Hood 40 F. Playfair 36 J. P. McDonald 64 140 ^ ii —94- Marcu 10, 1886, Sold A. Juniieson, Monti-eal, on acct. 8(K) bus. Oats, invoiceil, @ $1.05 Pre-paid sundry shipping expenses with Check No. 5 on City Hunk 11 Bought of J. T. Dawson, Buffalo, N. V., on acct. 400 bush. Asliton Salt, (a, $2.10, $840 200 b))ls. Water Lime, @ $1.85, 370 Freight due brig Minnehaha 18 Received, for dividend on our C. P. R. R. Stock, Cash 21 Transferred to J. T. Dawson & Co., Buffalo, N. Y., our C. P. R. R. Stock, two shares, at $69.84 24 Due the following persons for 6 weeks ser- vices to (late W. Hood F. Playfair J. P. McDonald 840 40 1210 97 We have this day taken an Inventory of our effects, and find the folloM'ing property unsold : Merchan.lise $3,107 Real Estate . 2800 Live Stock 180 Movable Property oO Funiitnr' and Fixtures 190 $()557 Inventory total $(5557 108 84 1)6 880 1307 139 288 U 68 Note.— HavinR Journalized and posted the accounts foun 1 in this Day Book, take a Trial Balance and Test Statement, and so ascertain i( your work is correct. You will then bring down all Inventory Halancen "To Balance," an-i Balance of Ueal Accounts, such as Cash, Bills Payable, Personal Accounts, etc., either "To" or "By Balance," as the standing of the Accounts may show. If an account is closed "To Balance," you will open it by writing on the Credit side of the same, "By Balance," and the reverse, dating all the balances thus transferred. This transfer will correctly locate in the Ledger the Assets and Liabilities ready for the coni- nieuceiiient and continuation of the Sixth Set, thus saving the unnecessary labor of Journalizing and Posting these accounts, and arriving at the same result. Before Posting the Sixth Set, take a Trial Balance of these accounts that have been brought down in the Ledger, and thus ascertain if the transfers have been properly made. You will also make out the necessary business papers, using such names and amounts as the transactions call for. ' I —95— TRIAL BALANCE-SET V. Dr. Cr. Israel Taylor F. Booth Cash Mdse. (Inventory $3307) Bills Receivable Bills Payable VV. K. Ovens VV. li. Dunlop J. A. (Jreenwood M. Ryan Real Kstate (Inventory §12800) . . . Furniture and Fixtures (Inventory $190) Expense Stationery Advertising City Bank Insurance C. P. R. R. Stock E. Potter E. F. (iaulin E. P. Dunn Interest and Discount T. J. Nayl.ir F. Booth's Private Account .... Live .Stock (Inventory $180) . . . Movable Property (Inventory $80) . W. Hood F. Playfair J. P. McDonald A. Janiieson J. T. Dawson Brig Minnehaha Salary Account .•>648 7771 1404 1185 430 3000 200 45 23 48 3371 55 137 660 595 600 9 1120 594 200 100 40 36 64 880 139 288 28648 6036 ! i 5500 86 1 :H87 64 5786 77 1326 53 2361 30 300 82 101 50 50 34 976 50 146 900 88 1 48 68 77 73 44 75 02 18 68 40 18 108 84 96 1210 97 28648 22 12 21 40 Ledger Headings for Set V. — I. Taylor, 12 lines ; F. Booth, 12 ; G. M. Dnfif, 12 ; Cash, 20 ; Mdse., 22 ; Bills Receivable, 20 ; Bills Payable, 12 ; Renl E.state, 10; Furniture and Fixtures, 10 ; Expense, 10 ; Stationery, G ; Advertising, 10 ; City Bank, 16 ; Insurance, 10 ; C. P. R. R. Stock, ; Interest and Discount, 16 ; F. Booth's Private Account, 6 ; Live Stock, 10 ; Movable Property, 10 ; all other accounts ^ page except Balance and Loss and Gain Accounts, for which allow 1 page each. Note. — After closing the fifth set the balances are brought down and the sixth set posted under the same headings. New lodger head- ings added for the sixth set should be allowed J page each. I » SET SIX. This, of all Theory Sets, is the most difficult to comprehend. It is your last set of Books previous to entering the practical departments, and contains new and important transactions. In this Set you are called upon to exercise your own judgment in the construction and arrangement of a portion of its Day Book entries. This is an impor- tant feature, and one which should not he neglected. SET SIX. TAYLOR, BOOTH & DUFF, 245 St. James Street, MONTREAL. Copy the above card in Day Book and Journal. -98- Mabch 27, 1886. I. Taylor and Frc() 1412 102.-) 18 lOW) ()7r) (iO 6 2l(i0 25702 2r» no 83 07 0000 r>3-).i no 12 48.-. 1.-. 4:( 102 48.')0 r)(W) 272 I.'i08 798 2r)702 8:j 2t <•) 70 07 STATEMENT OF RESULTS. Total Resources $9,052 CO «' Liabilities 2,802 7G Present Worth »G,249 90 Total Gains , '• Losses 374 78 124 83 Not Gain $249 90 Student's Investment $G,000 00 Net Gain 249 90 Student's Present Worth $6,249 90 i> I —117— H3 no 63.-liLlICII)ATIOX OH SHU'MHNTS ON JOINT ACCOUNT. G4. Aduenture Co., as a Ledger title, represents //"'"• intercut in MtlsG. or other property shipped by you to bo sold on joint r.'"'ount and risk of yourself and other parties ; or, when you buy an interest in goods shipped by other parties ; or it may represent your interest where you receive intelligence that other parties have shipped to a third party, and that you are interested. Please notice that the term Adv. Co. is applied ONLY to your interest or share in the shipment. It is charged for your interest and share of the costs in the specu- lation when the shipment is made, an:l at tli3 same time debiting tin parties interestel with you for thoir share of tin Mdso. and charges; it is credited with your share of the net proceeds when the account of sales is received ; and, if the goods are all sold, closed to, or by, Lois and Gain. If an account of partial siiles his b23n reseived, credit Adventure Co. with your share of proceedi as reporte.l. Credit, by Inventory, for your share of unsold goods, and close the accoui.'t into Loss and Gain. Should you wish to close the Ledger before Account Sales has bean received, close Adventure Co. by ^Vilance for enou;,'h to close the account. 05. Mdse. Co., as a Ledger title, represents goods received hij ij:H I tp «5 «o (/; o « HP3 8 » iS) ^ -T< », 'S ^ HP3 CO o tf J) O -J V V ,-j O -*-* ^ Erf as o « CHP5 «: I cc U o eo H s rtr- ^ ■131- WHOLESALE BUSINESS. (72.) The principal books used in our best wholesale houses now arc the Invoice Book, Sales Book, Cash Book, Journal, Bill Book and Ledger, the posting being done directly from these books to the Ledger. The form and use of these books have been explained already, ex- cept of the Invoice Book and Sales Book. 73. The Inuoice Booh is kept for the purpose of entering therein all purchases of mdse. At the end of each week or month the total footings of this book may be posted to the Dr. side of Mdse. account, and credit the per- sonal or other accounts affected throughout the Invoice Book. Where the purchase was made for cash enter the amount on the credit side of the Cash Book by JVIdse. Mdse. will then be debited in the footings of the Invoice Book, and cash will bo credited in the footings of the Cash Book. When a cash purchase is entered mark " C. B. " in the folio column opposite the name of the seller. N.B.— In many business houses the Invoice Book is made up by posting the invoices received into the book, and in many respects this method is preferable. 'iill — 132- '{ ! I L. F. 74.-FORM OF INVOICF BOOK. IOtii Ar(;usT, 1886. E. Finlay, Toronto. 1 pc. English Tweed 24? yds. @ 81.15 2 pes. worsted o'o ( 47^ n n l.M 1 pc. Freneh coating 28^ m m 2. 10 1 pes. Moleskin 30| « „ 1.70 Note at 4 months. 12 E. F. Oanlin, Dcseronto. 1 pc. French Tweed 24 yds. @ $1.2,") 1 pc. Cottonade 2!) n m 95 1 pc. Doeskin 21^ m m 2.65 On account 30 days. 15 J. P. Bvurs & Co., Gananoque. 1 pc. Cottonade 27^ yds. (ii, $1.05 1 pc. French Tweed 24g yds. @ $1.40. 1 pc. Melton 2U m „ 2.80 Cash. 18 H. Kelley & Co. , 50 bus. Wheat (w, $1.50 1(X) bus. W. Oats @ 60c 90 bus. Chili Potatoes (®, 50c . 5 bbls Mess Pork @ $12.50. . . City. 60 days' Credit. 20 J. N. Wilson, 24 bus. Wheat @ $1.60 .. 48 .. iW-ley ., 80c.. 36 .. White Oats® 00c. 20 II Corn® 50c Brockville, Note at 3 months. 28 73 59 51 30 27 56 29 34 60 /5 60 45 62 21 10 46 63 85 43 55 98 14 48 20 50 38 40 38 40 60 213 114 123 242 108 802 37 53 82 50 40 62 75.— SALES BOOK. This book is kept for the purpose of euteriug therein all sales of merchandise. • 1. 15 1 pc. Canadian rt 29.} n n 1.00 , IjII yds® 1.00 2 pes. Sootuh 30 days oiedit. 14 — Fred. Bnllis, Lyn. 1 pc. Canadian Tweed 27i yds. (a $1.00 1 pc. ('otton Duck 1 pc. Fur Beaver 1 pc, English Tweed Cash. 2«) 22i 26i 18 1.10. 3.00. 1.20. Kingston, J. Cochrane, 10 bbls. Mess Pork (d $14.50. . 20bbls. Flour „ 6.00 3 lihds. Sugar „ 20.00 12 half chests Y. H. Tea, 72 12, 75-15, 70-18, 217-37, 180 fe 60 Note at 90 days. 23 72 29 25 58 25 27 50 28 (iO 1 67 50 31 80 145 1 120 1 60 1 108 i 111 22 155 433 699 40 62 SET SEVEN. MANUFACTURING SET. The Form of this set of books is similar in all essential particulars to that in one of the largest manufacturing firms in the country and was selected because it was both simple and practical. The business represented is the manufacture and sale of Sole Leather, but the arrangement of the Set is as well adapted to the manufacture of Iron, Furniture, or other commodities as to this. ' I i —134— In any manufactory we deem it important that an accurate ac- count be kept of the Raw Material purchased, of the quantity sent to the manufactory, and the return of it after being manufactured to the sales room and finally its sale as merchandise. A very simple and effective method of doing this is here illustrated by use of extra columns in the Ledger. The number of Hides sent to the Tannery is given on the left side, and the number of sides re- turned on the right. Twice as many Sides should be returned as there were Hidet' delivered. If any sales be made from the stock in Tannery before being transferred to the Sales Room make the Transfer Entry to Mdse. account and then Credit Mdse. account for the Sale. The books required in writing up this Set are Journal, Day Book, Cash Book, Bill Book and Ledger. MANUFACTURING SET. MEMORANDA OF BUSINESS TRANSACTIONS. Sept. 1, 188G. — Student has this day commenced the manufacture of Sole Leather with the following Resources and Liabilities : Cash on hand, $ 1 ,500 ; on Deposit in City Bank, $7,000 ; 100 Sides best slaughter Sole Leather, 2,300tbs. @ 83c., $769 ; 100 Sides good slaughter Sole, 2,050 lbs. @ 30c., $615 ; 200 Sides Buenos Ayres Sole, 2,800 lb?. @ 25c., $950 ; 50 Sides B. A. Sole, 925lbs. @ 21c., $194.25 ; 150 Dry Corpus Christi Hides, 4,200 lbs. @ 21c., $882 ; 130 Green Salted Hides, 9,100 lbs. @ 9c., $819; 200 Cords Bark @ $6.50, $1,800. J. Wooley's acceptance of 1st Aug. last $1,000. Tannery and Fixtures valued @ $10,000. Liabilities — I owe F. S. Oliver on acct. $1,000 ; my note favor W. J. Oveus @ GO days, $500. " 4 — Gave check on City Bank for F. S. Ohver's draft on me favor Merchants Bank, $1,000. " 4— Bought of A. Oldreive, Ottawa, on acct., 150 Green Salted Hides (11,250 lbs.) @ dhc, $ ; 50 Green Salted Hides (grubby, 3,620 lbs.) @ 7c, $ ; salting and binding, each 25c, $50. " 0— Sold F. Shaw on acct., 30 sides best Slaughter Sole (675 lbs.) @ 84c, $ ; Cartage, 60c. favor —135— Sept. 6— Sold F. A. Scott, Perth, on 2 mos.' time, 50 sides B. A. Sole (1,000 lbs.) @ 2Gc, $ ; Cartage, 50c. •' 7 — Delivered to Tannery Stock to be worked in, 200 Green Salted Hides (14,570 lbs.) Cost, $1,872.16 ; Freight, $72.50. " 8 — Paid the Tannery men wages for the week, $214 in Cash. " 10— Sold M. Sills, Napanee, 60 Sides best Slaughter Sole (1,250 lbs.) @ 34c, $ ; Cartage, 60c. Terms, 2 mos., 1°/. oflf, $ . " 12— Bought of John Smeaton for Cash, 20 Carboys Acid (2,800 lbs.) @2c, $ ; Carboys, each $1.75, $36. " 13- Bought of F. S. Oliver, 20O Dry Hides (5,300 lbs.) @ 18. Coin, $964; baling 8 bales @ $1.60 each, $12; premium for coin @ 107i, $72.45. " 14— Delivered to Tannery Stock to be worked, 150 Dry Corpus Christi Hides (4.030 lbs.) Cost, $882. " 15— Sold F. Shaw at 4 mos., 76 Sides No. 1 Dry B. A. Sole (1,751 lbs.) @ 30c, $ ; Cartage, 60c. Received Sight Draft on acct., $200. " 16— Gave Check on City Bank for 600 cords Bark @ $6.60, 17- Paid C. P. RE. Frieght on 8 bales Dry Hides $82.60, with check on City Bank. 18— Delivered to Tannery Stock 200 Dry Hides, weight 6,180 tbs. Total cost $1,120.95. 19— Paid Cash for 20 bbls. Lime @ 90c. $18. Paid C. P. RR. Freight on Green Salted Hides Cash $72.60. " —Sold F. A. Scott at 60 days 20 Sides Good Slaughter Sole, 444 lbs., @ 31c., $ ; Cartage 30c. " — Received of M. Sills his note @ 2 mos. from 10th inst., payable at Federal Bank, $421.25. 20— Sold Fred Scobell 800 Sides Dry Texas Sole, 7,276 lbs., @ 30c. $ Paid my note favor of W. J. Ovens with check on City Bank $500. 21 — City Bank Discounted M. Sills' note at 2 mos., face $421.25; Dis. off for 58 days @ 7/0, $4.28 ; net proceeds to my Credit $416.97. t ! li ;i !! H J ill! I ii ]i ! ir- —136— 23— Sent to Tannery Stock to be worked in 130 Green Salted Hides, 9,100 lbs., cost $819.00. " —Bought of W. Squires 150 Dry Salted Hides, 4,687 lbs. at 18c., $848.66, paid with check on City Bank. 24— Paid Albert Scott Cash for 120 City Butchers' Hides- Green Salted— 10,200 lbs. at 7c., $714. 26— Received from Tannery Stock 800 Sides Sole Leather, 6,150 Ibbs. at 31c., $1,906.50. 28— Paid Cash for Labor $212.00 ; for Repairs $65.00. Inventory Sept. .30, In Store In Hide House. 225 Sides Leather, 4,613 ITjs. @ 31c. . . J 50 Dry Salted Hides, 4,687 His. f,")2: Sept 5 By Felix Sliaw 6 ,1 F. A. Scott. 10 M M. Sills... 15 II Felix Shaw 19 .1 F. A. Scott. 20 I. F. Scohell.. , .'{0 M IllM-lltol V Sides. L.F. 30 .-)() .50 75 20 300 230 260 50 421 25 525 80 13794 2182 50 i4:;(io.'i 1886 Hides. L.F. Dry Hidk .\(j't. 1886 Sept 1 '1\) Student ... 150 M F. S. Oliver 200 II City iJank. II II II 150 882 00 1038 45 82 50 843 66 Hides. L.F.' Sept 14 ByTan'ryStc'k Ac't. 1.50 18 .1 Tan'rySt'ck Ac't f^o 30 . Invfiitorv :.i) 882 1120 05 843 66 1886 Hides. L.F Green Hide Act^ 1886 "'" Sept 1 To Student.... 1.30 4 II A. Oldrieve 200 19 II Cash 24 II II 120 819 00 1372 15 72 50 71400 : Hides. L.F. Sept 7ByTan'rySfck Ac't 23 M Tan'rySt'ck Ac't .'{() .. hivcntoiy 200 1,30 120 1444 65 81900 714 0(1 18^5 Sept! 1 T') Student. . . . 1 16 11 t'ity IJank. Cords. L.F. 200 600 H.\RK Act. IS86 1300 3900 Cords. L.F. So])t :!0 i'.v Tan'rv St'k Act.' , : M liiv'tv .\o S" 000 3. ; 1 il 1050 1.2.J 1 2 ?■ I. 625 .15 j s 285 2500 »; >. 1 1 <•*• Chg l linrk Cfinn/fn Col. Ifjii'il. Siiiit li 1050 625 1675 oool 2851 IlemarkH. Chg'd I'liilp* ('.). 2500 To he collected l)y Liiye'iit c. n. F. Jour. F. II F. Date. 1886 June 1 L,F. book:. Cn. War/en .Steamer (Jypsy (part payment). . . Store Acct. Supplies at Kingston Kxpense, Wharfage at (Jobourg. . II II II Port Hope Wages as per Hands Register . . . Fuel I, Sfore» Wages Stores . Fuel... Fuel Book Balance . 108 50 745 Fwl. 80 900 .•?««(/ ne.i. 100000 50 40 108 745 900 2036 80 50 80 10.3804 i" ! i' — 146 — il Eli* , il;;. t! 1' I I Veil ill; m .11 i III u, 1 I ■ <. 88.-JOURNAL JtTNE 1, 1888. Dr. Cb. Steamer "(iypsy" TolJills I'ay (Jave our Note in part payment of the vessel. Gr>()0{) F. riiilp To Freight.. Freight unpaid per Freight liook A. Smith To Fieiglit . , Fi jight unpaid per Freight 15ook 000 28;') Wages Account To J. lilack. II A. Jack . Salaries unpaid to date 49 9.-) 059341 9-) 0"»000 GOO 285 20 2S 059;}4 05 95 Note.— Post from tho Journal and (.'ash Book the s;imo as in all fornior sots. Allow sovon linos f{ r o.ich of tho Ledger hcidings. TRIAL BALANCE. Dr. Cr. A. B. Smith . . .T. Coon Steamer "(Jypsy'" Cash Bills Pay. . . F. Philp . . A. Smith . . Passage Freight . Stores Fuel .... FiXpensc Wages J. Black . . A. Jack . 1 1 0.1000 103804 000 285 745 9(K) 12 158 271500 80 90 45 15 50000 52000 101767 05000 129 25U0 20 20 05 2.3; 30 2i\rm\ 15 i -147- 89-— JOURNAL ENTRIES. Ill the usual course of business we often finil transactions to jour- nalize for Avhicli no general rule can be given. Below we give a number of transactions together with the journal entries for the same, ■llustrating the best form of making entry for, renewing and discount- ing notes, in c.se of protest, cross entries (when the wrong account has been debted,) writing off bad debts, compromising with insolvent debtors, return of goods, not being according to order, or a rebate in price, to correct errors in hiterest, etc. 1. Our note No. 7, due this day at Federal Bank ha'^ '^ocn renewed by giving a new note at GO days discount G/.. Facsofnoto No. 7, $250. 2. A. L. Davis' note, dated Jan. 8, 1880, at 90 days, for 8G50, endorsed by me and discounted at the Merchant's Bank, has been protested for non-payment, returned to me, and I have paid it by giv- ing a new note at 80 days for such a sum as would cover the face of the old note, and S3 protest fees, after being discounted at G/.. 8. Had A. R. Haskins' note of $175.50 and interest at G /., 90 days to run from 15 March, 188G, discounted at D. C. Bank. 10 April, 188G, at G/o and the r.et proceeds placed to our credit. 4. J. Coon, Trenton, has returned 4 bbls. Crackers at $3.50, not being the kind ordered. Wo pay $1.75 freight with cash. 5. Sold S. A. Carr, Mdse. invoiced at $75.40, I find afterward that the bookkeeper made a mistake in journalizing the account and debited S. A. George for the amount. What entry shall we now make to correct the error ? G. 7th April, 188G, we compromised with L. A. Fell, for his Note for 878, due 22 Feb., 188G, which we hold, he to pay us Cash in full, for the interest from 22 Feb. to date, at Q/, and 45/. of the principal. 7. As an endorser on R. Gowdy's Note of $950, you pay the Note and $1.50 protest charges, with Cash. 8. W. Canuem & Co., Trenton, claims an allowance of 3c. per lb. on 720 lbs. Rio Coffee sold to them on the 29 ult., because not up to sample, which we have allowed. 9. We have on our Ledger the following accounts considered bad which we wish to be written off :-A. Clark, $240 ; R. Black, $75 • E. Trusty, $90. Give Journal entry. I ;i Ml i . ■. I li A III ■! 1 " i\\ !!li 11 ?• f —148— « 10. Jan. 15, 1880, received for J. Swift's Note of $500 and $0.40 Int., Cash. Bills Rec. was credited for the full amount and the error was not discovered until we tried t ) close our books ; what entry can we make to correct the error ? 11. Sent my agent (Geo. Brown) a check for $300, to bo used in repairing buildings on my farm. 12. N. Harter buys out G. Martin's entire interest in the firm of Reid, Kennedy & Co., for $1,500. Harter gives his Note at months. What entry will be made in the firm's books if the balance of Martin's stock account is $1,825.50 ? 13. L. Wilder prv ents to us for acceptance, A. V. Kane's draft at 80 days' sight for $1,200. But. being in need of funds, L. Wilder offered to accept Cash on a basis of present wOrth, interest 8/0. We gave them our check for present worth. 14. Accepted H. Cormack's Draft at 10 days' sight in favor R. A. l^ell, payable at the D. C. Bank, for $8,750. (1) Bills Pay $250 00 Int. & Dis 2 05 To Bills Pay $252 05 (2) A.L.Davis $053 00 Int. &Di3 3 01 To Bills Pay 050 01 (3) D. C. Bank $170 23 Int. & Dis 1 99 To Bills Rec 175 50 ♦' Int. & Dis 2 72 Or D. C. Bank $170 23 To Bills Rec 176 50 •' Int. i& Dis 73 (4) Mdse $15 75 To J. Coon..... 14 00 " Cash 1 75 (5) S. A. Carr $75 40 ToS. A. George 75 40 :j& —149— (^) Cash |35 (59 Loss and Gain 42 90 To Bills Kec 73 00 " Int. & Dis 59 (7) R. Gowdy |95i 50 To Cash 951 50 («) Milso |21 GO To W. Canncm & Co 21 GO .(9) Bad debts account 155405 00 To A. Clark 240 00 " R. Black 75 00 " E. Trusty 90 oo (10) Bills Rec $h' 40 To Int. & Dis c 40 (11) Geo. Brown , $300 00 To Bank 300 00 (12) G. Martin $1,325 50 To. N. Harter 1,325 CO (13) A.V.Kane $1,200 00 To Bank 1,191 27 " Int. &Dis 8 73 (14) H. Cormack $8,750 00 To Bills Pay 8,750 00 Note — For No. 9 above, open a bad debts account in the Ledger and under tliis post each name with the amount. This gives a chance to find what their accoui/- was if any of it should ever be received. At the end of a year if pre- ferred the Bad Debts account may be closed into "Loss and Gain," or carried on as a "Resource." ) .( ,! Ill; 'I ' •! i' — 150— BANKING. Banking is so intimately connected with the business interests of our country, labor, capital and commerce arc so fully represented as to make it indispensable that the business man should become ac- quainted with its general routine if not familiar with its details. When it is desirable to open an account with a bank you should call upon the manager, who, if satisfied as to your integrity and sol- vency, will supply you with Pass Book and all necessary blanks, as Deposit Slips, Checks, etc. When you wish to make a deposit, enter on a deposit slip your name and the date, the description of the deposit, whether . Bank Notes, Checks, or Specie, according to the printed form of slip. Write also the amount of the deposit. Hand this slip, together with your deposit and Pass Book, to the Teller, who will count the deposit, and if it agrees with the slip, he will credit you in the Pass Book. When you leave a Note or Draft for collection, an entry will be made in the Pass Book, but the amount will not be entered into the money column until the collection is made. If you have a note discounted and the proceeds placed to your credit, the entry will be made in your Pass Book to your credit for the face of the note less the discount. The entries in the Pass Book are made by the Teller or Ledger- keeper, and are your receipts for the amounts you have deposited. At the end of each month you should send your Pass Book to the Ledger-keeper, who will enter the amounts withdrawn by you during the month, and balance the account. When the book is returned you should see that it agrees with the account you have kept. Chech Boob- — Li this book are printed blank checks, having a margin on which you write the number, amount, to whom given, for what, and the date, for each check you give out. On the Stub of the opposite page may be entered all deposits, in black ink, and the with- drawals in red ink. From this record we can easily ascertain the balance to your credit in the bank at any time. Bee form page 153. ''i'.-'Si —151— Checks are payable on presentation and should be drawn oidy by persons having money to their credit in the bank. If a Chock be drawn payable to the "bearer," it may be transferred without indorsement, and is payable to the one who presents it. Where a Check is drawn payable to a person or "order," it must be indorsed by the person in whose favor it was drawn before being cashed by the bank. It is always safer to draw your checks in this form, as the Bank will not pay them until indorsed by the proper person, and having been thus indorsed they serve as receipts. If the Bank refuse payment on a check because the maker has not sufficient to his credit to meet it, the check mav bo returned and the maker held responsible. The holder of a check may incur »-osponsibility by neglecting to present it for payment within a reasonable time. When sending papers ^': the Bank to be deposited, mark "For Deposit" on each above your name. Checks, whether drawn payable to "order" or "bearer," must be indorsed by the depositor. In filling out a check, place the amount in figures in the upper left hand corner, and also write it out in words in the face of the check. Rule up any unused space so that no addition can be made by insertion. A Certifiecl Chech is one that has been "marked" good by the Cashier of a bank, thus making the bank responsible for it. When the bank certifies a check for you, you should credit the bank for the amount on the stub of your check book. A Certificate of Deposit is a receipt given by a banker for money deposited, and is often used in making remittances. They may be made payable to the order of the depositor. Remittances are usually made by Drafrs or Bills of Exchange, which may be purchased at the bank. DISCOUNTING NOTES. All Notes for discount should be presented to the Manager, who will decide whether they are to be discounted or not. Notes for discount should have at least one name besides the ranker on them, cither as drawer or indorser. They should not have more than three mouths to run before maturity. ii I II I —152— Banks do not usually discount paper for persons who arc not re- gular dealers in the bank. Notes for Collection should be sent to the bank some days before maturity, that proper notice may be given to the makers or indorsers of the note, or in case the paper is payable at a distance, to send it to the place where it is payable. If you are placing a paper in the bank for collection on which you do not wish to incur cost of protest in case of non-acceptance or non- payment, you can attach a slip of paper with the words, "Not to bo Protested — take this off before presenting," and if the paper be not paid the bank will return it to you. Transact all business with the bank as early in the day as possible. THE BANK BOOK. In this book the Receiving Teller enters the amount of your depo- sits upon the left-hand page. Once a month, or ofteuer if you desire, the checks you have drawn are written up on the right hand, and accounts balanced. Dr. Dominion College Bank in account with H. Jack. Cr. 1886 1882 i Jan. 2 To Cash, F, 200 00 75 2 It Note, F, 981 92 $40, $60, $28.96. 128 96 6 n M F, 198 14 $300, $35.10.' 3.35 10 10 It Stewart, $470, Ret'd 60 1.3 II Note, H, 160 90 13 43 13 II Cash, H, 100 00, $7.64, $673.08, $97, 777 72 14 II II F, 27/25 26 75; 286 20 16 II II F, 460 S4\ lily Balance * Twelve Vouchers re- turned * 452 14 20 2128 452 551 14 2128 55 To TJalanco Dakin, bookkeeper. * Red Ink. THE GHEGK B00K. In this book are printed blank checks. In the margin of the right- hand page you write the number, amount, to whom given, for what, and the date, The amounts deposited are entered on the stub of the opposite page. By subtracting the amount drawn out from the amount deposited, we can at any time ascertain the balance of cash to your credit in the Bank. rr.-^-^^r'inz —153- i Expense . e, 18S6. 1 5J ^ ^ S' 3 : ii? « ^ ^ t! V ^ <^j a. ^ 1 4 i ^ ^ ^ CO S ^Z g IS o Sll 8 QOO S ^ (N Oi 1-^ ^-H lO ^ ::ii 2S § I^ 1—1 S? * CD CD Q GO rT oT.S 3& © ^ C^ ■^ ^ S -S -S oT Ol Cash, I. W, Note No. 2, Disc't, Cash, J. Sm Stewart's N( (For CoUe Worth's Not Disc't, 6 is 8 1 P2 5 ca s « Q 2 B - - - - '■'I j -154- CERTIFICATE OF DEPOSIT. S2,000. .^j-. Froin J2^j>r^j/<^n Qant. 23c/, /SS6. e/e/iodtfea tJt /hu '^/jaii^ C^icfi cJfAcefJaitd^Jo/'- '^IJ, /iaya/'/e /^ ^e c^c/cl c/^ cJ. O/? {/fc'/jojf., f/ie 'i-e-fttiu ft/^ /uis (peifrVtcnie. J.B.McKAY, Cashier. No. 40 BAEK DRAFT. tCh_ ;j^775-^-» „£&__H?1. TI7(5" i J2^t:<>^njAri,, Qan. 8c/, ^S^6. ((jjie ^2^'H.^tc/tec/ -^eveyi,//='/ife anc/x^^ J/J<^//alS. pjo. 29. To MERCHANTS' BANK, Ottawa, Out. A, McDonald, cashier. CZ^'^S^' DEPOSIT TICKET. Upon this you enter tlie amount of Deposit, the kind of Funtls deposited, witii the date. This must accompany each Deposit. Deposited in oyglnkn ^olkgii ^an% By Isaac Wood, 1st June, 1,SJ^(j. Bills Checks $.30 1. 2.5.50 Specie 200 55 44 .300 — 155-^ BUSINESS FORMS. BILLS. li-sbi-f R. WALDRON. TERMS 30 DAYS. 5 f>c:>. (hcotc^ ^tveecl (785 udsj • at $7 70 " ^icfotia^iHp^ami('7US^(/iJai2Sc 3 " Q/?ec/(Btoii (BamStici, 96\ t^c/i, at 8o 78S UO ou 7 72 23'J 7G ]iou3bf-f JAMES REDDEN. C. TERMS CASH. 60 fiS:>. C^tanu&ttect Q>t4aat at 70^ c 700 tSx QiuoAed (Vupat - at 72c SO SoxeA (^ 7 (2anc/te:>, 74S /Sa., at 7Sc S Saas o/^io (Soj^e, 7S0 tBct., at 76 ^c e/lecefvect ^autneut, Mantes K\KT. $5(5iViT Toronto, Ont., J) July, 188G. At sight pay to J. (l. Frost or order Fifty-six and i**,,",, Dollars, valuo received, and charge the same to account of To A. M. Mills, J. I). KING k Co. Kingston, Ont. 2. DEMANO DKAKT. $120. TuKNTON, Ont., 11 March, ISafJ • On demand pay to the order of A. Carter One Hundred and Twenty Dollars, value received, and charge the same to account of To H. A. WILSON, J. S. MILLKll. Oshawa, Ont. 3. TIME DRAFT. $21.'3. Kingston, Out., 14 May, 1880. Thirty days after sight pay to the order of F. Lake Two Hundred and Forty-five Dollars, value received, and charge the same to account of To A. L. HOWARD, FRED SCOBELL, Ottawa, Ont. Note.— In the a1)ovo the timo dnoH nnt count nnlil tho (Lite of accsptanco. Tlio draft niiglit road, "Thirty days after date," then the time would count trom the diito of the paper. S140y'JV 4. TIME DKAKT ACCEPTED. Kingston, Ont., 27 May, 188(5. Ten days after sight pay to A. E. Kniuiedy or order One Hundred Forty and -{'^jj Dollars, value received, and charge the same to account of To D. J. LAUDER, J. B. REID. Montreal, Que. NOTE.— In acceptinfc tlie abova draft it is nocnsaary to (tivo the d:ite of acceptance. If the draft Hhould read "after dite" instead of "after sight" tliou the dnto of accoptanoo is unnecpssary. SET OF FOREIGN EXCHANCE. Exchange for £75. Kingston, Ont., 17 Aug., 1885. Thirty days after sight of this our first of Exchange (second and third of same date and tenor unpaid,) pay to I. Wood, or order, Seventy-five Pounds Sterling, value received, and charge the same to account of To J. CLARKE & Co, J. B. McKAY & Co. Bankers, London. i 160— Excliange for U75. Kingston, Ont., 17 Aug., 188G. Thirty days after sight of this our second of exchange (first and third of same date and tenor unpaid,) pay to I. Wood, or order, Seventy-five Pounds Sterling, vahie received, and charge the same to account of To J. CLARKE & Co, J. B. McKay & Co. Bankers, London. Exchange for £75. Kingston, Ont., 17 Aug., 188G. Thirty days after sight of this our third of exchange (first and second of same date and tenor unpaid,) pay to I Wood, or order. Seventy-five Pounds Sterling, value received, and chaise the same to account of To J. CLARKE & Co., J. B. McKAY & Co. Bankers, London. ORDERS. An order is a written request to deliver or pay goods or money on account of the person who signs the request. OKDER FOR GOODS. $100. PiCTON, 1 Jan., 1880. Messrs. Brown Bros , please pay R. Easton, or order, One Hundred Dollars in goods from your store and charge to the account of WM. DOWNS. $100. (order for money.) Napanee, 1 Feb., 1880. Messrs. Wilson Bros., please pay toD. Lewin, or order, One Hundred Dollars and charge the same to ray account. N. SMALL. DUE BILLS. A Due Bill is a written acknowledgement of a debt. (due bill for money.) Trenton, 1 March, 1884. Due S. Ball for value received One Hundred Dollars. P. RAND. I ''if -i6i- ''A (UUE BILL rOK (iOOI)S.) $100. Port Hope. Due L. Peters for value receivotl One Hundred Dollars, in goods from our store. T. JOHNS. RECEIPTS. A receipt is a written acknowledgement of having received a certain sum of monej', or other valuable consideration. (receipt on account.) |100. Kingston, 20 Jan., 1882. Received from E. Jones One Hundred Dollars on ac- count. F. PL ATT. $100. (receipt in full of account.) Prescott, 2 Feu., 1884. Received from D. Hodge One Hundred Dollars in full of account to date. S. KING. (receipt in full of all demands.) 8100. Ottawa, 1 March, 1883. Received of R. Small One Hundred Dollars in full of all demands to date. D. M. BALL, (receipt for rent.) $100. CoBouRG, 3 April, 1884. Received from L. M. Fell One Hundred Dollars for one month's rent of store No. 142 King Street, ending 31 March last. F. R. HALL. $100. (receipt for a note.) Brockville, 10 Jan., 1885. Received from A. L. Flynn his note of this date at Three months, for One Hundred Dollars, in settlement of bill rendered 12 May last. (agent's receipt.) $100. Gananoque, 1 July, 1886. Received of ^^ Doran, One Hundred Dollars in full of his account with R. West. M. A. KENT, Agent. -102 — •;fi FILING BUSINESS PAPER. ir' The forms below represent Business Taper, properly folded and filed. As the folding and filing of other papers (not represented) should bo the same general form, we deem it unnecessary to give them. •M a > ston, 882. lass, Acct' i ^ (U to -^ 00 a =8 fl B . C «8 1^ S ;3 J o 1 1 .2 W .Q . 1 F-^ « Tr D. Taken 26th H. H .5 H * (M' S .r' OD » avage ton. ice, il, 18 .25. r/i a O »- o 8 «2 -." HJ H ^ "^ ^ H 1 1 'a a <5 >t> ~ (N 5R oc m *» . « 00 S ^ "^ "^ <=• M CO .-" > . >> • U 1— 1 •^ 5 *t:J -? l--- . o . .i, O S Ttt ,1,' (N ci eo. Smitl Toronto. 11 of Mdi April, 1 S150. ♦Bills for pril, 188 < I li'l (it; ..,~'.-*otWV«t**»C —163- folded and ed) should tiem. o I » <^ CO Z c X o (0 (0 S 1^ J e3 ^ ISH 1 ^ .Z2 ^ CQ -^ I— ~s CO o •to •« •■^ -^ §: I o -^ 52 ^^ CO s o CO O 5 c -« 1 '^ i v> F -< •^s 5; ^ O a "is ♦^ JO •♦^ a m ^ !S a ^ 5 - •" a ,0 ,0 so CO O '^» • S a <; 5- -a •- 5 £; 2 a o -« ^ V o CO 15 >- •i.i a ^ W !i V — 172 — INVOICE LETTER OF ADVENTUKE. ToKoNTo, Out., 21st Jan., 18Hi>. K. S. Day, Esq., Montreal, Quo., Dkak Siiis, — Iloi'owitli pleaso fiiul Invoico of Flour and Salt, bhii^ped you this day per G. T. li R., to bo sold on my ac- count. Pleaso elTect sales as soon as posniblo and remit proceeds by Draft on Now York. Respectfully yours, W. J. 0VEN8. Invoice of | ^^ ^i^^*^- J^^*}"^ I sliipped per G. T. R R., 21st Jan., 1885, and consigned to R. S. Day, Montreal, Que., to be sold on commission. 30 bbls. Medium Flour @ $10 .TO M Suit m 4 Paid Insui'unco and Cartage E. & O. E. Toronto, 2l8t Jan., 1S85. VV. J. OVENS. i .300 120 6 75 1 420 1 tit ACCOUNT SALES LETTER OF A CONSIGNMENT. W. J. Ovens, Toronto, Ont. Dear Sir, — Herewith please find account of sales of Flour and Salt received by me 22d inst., to be sold on your account and risk. The goods arrived in good order, and met with ready sales at advanced prices. I have credited your account with net proceeds. If the result is satisfactory, I should be pleased to receive further shipments. Truly yours, R. S. DAY. 71- l:li ■^75— , 1885. of Flour 1 ray ac- ceoils hy ^ENS. -n., 1885, iiuission. 42(5 lit , -> , ,- { SO bbls. Flour ) . , /< m d i, ^^.i^ i Aceniiiii StilcH (if j on .. y u ' received per (i. T. 11 11. 22J Jan., 1885, from W. J. Ovens, Toronto, Out., to be sold on commisriion. Jun 24 20 Jun 22 Sai,ks. Sold on .3 montl. 'it, .•W1)1)1h. Flour, r fU, Sold for iioti) at ton days, m bl»ls. Salt, at $0. ClIAUdES. Cartage and freiglit. My Conmussion, (o 2J% Yoiu' net proooods, due l)y avorago, 2 April, E. & 0. E. Montreal, 28 Jan., 1881. R. S. Day, I'cf K. White. 420 ISO 10 lo 1 1 GOO 25 575 T. sales of account dy sales roceeds. further )AY. INVOICE LETTER OF ADVENTURE CO. Painesvillk, Ohio, 21th Jan., 1881. II. G. Eastman, Esq., POUGHKEEPSIK, N. Y. Dear Sir, — Enclosed please find Invoice and Bill of Lading for Wheat and Oats, shippeJ you on this date to be sold on joint account and risk, as pr. Invoice below : 400 bush. Spring Wheat, at $1.00 $400 400 " Western Oats, " 53c 200 $G00 Should the shipment meet with ready sales at advanced rates, please advise rae at once, that I may anticipate the market and secure far- ther shipments. Truly yours, M. E. LUCE. i iK if I a ■ —174— ACCOUNT SALES LETTER OF MDSE. CO. PouGHKKEPsiE, N. Y., 15tli Feb., 1881. M. E. Luck, Es(j[., Painesville, 0. Deak SiK,— Eiiclosod I sent! Exchange on your city for Tlireo Iluntlred Ninety-four and yJo (!"^0'4-37) Dollars, the net pro- ceeds ot your shipment of the 2Gth ult., as shown per .statement below. SALKS. Feb. 2, Sold on acct. (50 days, 400 bush. Wheat, at .$1,2"), 4, Took to my acct., 2(K) bush. Oats, 7.")0. G, Sold for cash 200 bush. Oats, at -SI, 500 l.-)0 200 8,10 CHAIUJKS. Jan. .ll, Freight, Aly C'onimission, (?/ 2i% Total net proceed."?. Your net proceeds, My one-half Invoice, My gain. Proof, 40 21 2.1 .394 37 300 61 2,1 rs8 i,> 94 38 §094 37 |«94 37 Proceeds due by average, 31 Mar. 1881. Hoping the above statement will prove satisfactory, and believing you safo in making heavy shipments of all kinds of produce, I remain, truly yours, E. & 0. E. n. G. EASTMAN, 721 Main St. 1. M. L. Ball's account is several months overdue. Write him a letter requesting an immediate settlement. 2. You have received a letter from A. 11. Fell, enclosing £25 to apply on his account. Write him a letter thanking him for the re- mittance and enclose a receipt. 3. Write an application for a position as Teacher in a Public School, stating your qualifications and the salary you expect. 4. Prepare a teloj^'rapliic rae.ssage of not more than ten words, oidcring 20 chests of tea and 5 bbls. sugar, to be shipped ky boat. 5. Yon are Secretary of the Board of Trade; prepare a notice to be printed in your daily paper announcing a special meeting. G. You have purchased a bankrupt stock, which you can sell at reduced rates. Write a circular letter h of inntract, generally sjieaking, are sucli as will pl.u'e the party injured as nearly as po.ssible in the same position pecuniarily as if the contract luid been pei formed. LIMITATION OF ACTIONS. Till- law limits the time witJiin wliich actions may be bi-ought. Actions of covenant or (k!l)t (ju a boml or other specialty e. g. a .sealed in- strument must be brcmght within 20 years after the cause of action arose. — i8o— Actions on account or on simple contracts, sucli as notes, Ijilla of cxclumi^o, ordinary loans not secured l)y deed, within six yoai's. Infants, or persons of unsound mind, are entitled to the henetit of the full period of limitation after the infancy or unsoundness of mind shall hive ceased. The period of limitation is extended hy part payment or acknowledgment in writing signed by the party chargeable or liis agent, and l)egin8 to run again fron» the time of such payment or acknowledgement. S. 6, Rev. Stat. Ont. c. 1 1 7, proviiles that no endorsement or memorandum of any payment, written or made upon any promissory note, bill of exciuuige, or other writing, by or on behalf of the party to whom such payment has been made, shall l)e deemed sufficient proof of such payment, so as to take the ease out of the operation of the said statute of King James, (21 Jas. 1 c. 16.) t CONSTRUCTION OF AGREEMENT. The construction of all written instruments belongs to tlio court alone. Tliu following rules have been laid down as canons of construction : 1st. The whole of the agreement is to be considered in order to arrive at its meaning. 2nd. Ihe agreement is to be construed so as to give effect to the object and intpntion of the contracting parties. 3rd. Wheie general words follow otliers of more particular meaning, they are to be cons^.rued as applicable to things cjusdem generis with the former par- ticular words. 4th. The proper mode of understanding words is according to their ordinary sense and meaning. oth. If a contract is made in one country to be performed in another, it will generally be governed by the law of the place of iierforniance. ASSIGNMENT OF DEBTS AND CHOSES IN ACTION. The old rule of law was that the benefit of or the right to sue upon a con- tract could not be assigned, so as to give the assignee a right to sue in a Court of law. It was thought that to permit such assignment \\()uld induce litigation. To this rule there was an exception in the case of bills of exchange and promissory notes. It was found necessary, however, to change the old rule, ind it is there- fore provided by the Revised Statutes of Ontario, Chap. 116, Section 7, that every debt and chose in action arising out of contract shall be assignable at law by any form of writing, but subject to such conditions or restrictions witli respect to the right of transfer as are contained in the original contract ; and the as- signee thereof shall sue thereon in his own name in such action, and for su( li relief as the original holder or assignor of such chose in action would be entitled to sue for in any (Jourt of law in tliis Province. Section 8 of the same Act provides that the plaintiil' in any action or suit where the assignment is required by this act to be in writing may claim as as- %.. r. — i8i— Hi^'iieu of the original party or first assignor, sotting forth hrielly the various assignments under whieli the said cliose in action lias hcconic vested in him, hut in all other respects tlie pleadings and proceedings in such action sliall be as if the action was instituted in the name cf the original party or first assignor. Section 10 of the same act provides, tiiat in case of any assignment of a dcht or cliose in action, arising out of a contract and not assignable by delivery, such transfer shall be subject to any defence, or set off in respect of the whole or any part of such claim as existed at the time of, or before notice of the assignment to tlie debtor, or other person sought to be made liable, in the same manner and to tlic same extent as such defence would be efifectual in case there had been no assignment thereof, and such defence, or set off shall apply as between tlie debtor and any assignee of such debt or chose in action. Section 1 1 of the same act provides, that in case of any assignment, in writing as aforesaid, and notice thereof given to the debtor or other person liable in re- spect of a chose in action, arising out of contract, the assignee shall have, hold, and enjoy the same, free from any claim, defences or equities, which might arise after sucli notice as against his assignor. The 12th section provides that the preceding sections sliall not be construed to apply to bills of exchange or promissory notes. COMMERCIAL PAPER. Mercantile transactions have given rise to the use of what may be called commercial paper, which may be defined as the; written evidence of debt due by one person to another, to which custom and statute law have attached, in favor of trade, certain important incidents, the most important being negotiability. The principles laid down with respect to contracts generally apply to com- mercial paper and need not therefore be repeated in this place. Commercial paper consists of Bills of Exchange or Drafts, Promissory Notes and Cheques. A Bill of Exchange is a written order for the payment of a certain sum of money unconditionally. He who makes the order is called the drawer, he to whom it is addressed the drawee, and if he accepts it, the acceptor ; he, in whose favor it is made, the payee. The following is a simple form of a Bill of Exchange : *'2.")() KiMisTOX, October 3rd, 1886. At sight (itr thirty days after date, or on demand) pay to Henry Foster or order Two Hundred and Fifty Dollars, value received. MARTIN MURDOCK. To ROBERT (;ILLE81»IE, Hamilt.m. In this form Martin Murdock is the drawer, Robert (J illespie the drawee, (and when he accepts, the acceptor), Henry Foster, the payee. A Promissoty Note is a written promise to pay a certain sum of money un- conditionally. He who promises is called the maker, he to whom the promise is made the payee. I m -l82— '•■ I 1. The following is a siniplu form of note : $30() KiNCHTos, 8optcnil.or IStli, 18SG. Three months after date I promise to [my to Henry Hramo or oiilor the sum of Three Hundred Dollars, for value received. JOHN JONKS. In this form John Jones is the maker, and Henry liranio, the payee. The forms given are simple and for the purpose of illustration. In practice it is well in the body of the instrument to nan)e a particular place of payment. The students must carefully note the definitions given of bills and notes, as every element in the definition is nuiterial. Tlie following lemarks apply to both bills and notes: First. The order or pronnse must be in writing. It may be written in pencil or in any other substance, and upon any material. Second. It must be for the payment of money ; e.g. an order (-r promise to pay in goods or bonds wouhl not be a good bill or note. Third. It must be an unconditional order or promise. If it contains any condition precedent or defejisance, or is payable at an un(;ertain time, or out of an uncertain fund, it is no bill or note. A bill or note need not be in any particular form of words, provided it fulfils the required conditions. The principal parts of a bill or note are tlie anuiunt, date, time for payment, place of payment, designation of payee, name of drawer, and name of drawee, AMOUNT. The amount is usually written in figures in the upper left hanlank becomes payable to bearer. Suppose a note payable to John Sndth or ordfcr; if it is indorsed by John Snuth without the addition of any other words it is saui to be indorsed in blank and it becomes payaole to ])earer. John Snuth may, however, by indorsement nuike the bill or note imyable to the older of some other perstm. This is called, an in- dorsement in full, or a special indorsement. This other person must indorse it to make it transferable. An indorsement may be restrictive and may destroy the negotiability of the paper. "Thus, pay to A. 15. only," is a restrictive indorsenient. An indorsement may be conditional, that is, the payment may be made dependent upon a condition. To recover against the indorser in such a case, the condition must be shewn to have been fulfilled. A qualified indorsement is one which limits the liability usually created by an indorsement. If the indorser adds to his indorsement the words "without recourse," or similar words, he will not be responsible as an indorser in the event of non-payment. A note may be indorsed by the paye«j"s legal representative, that is, his exe- cutor or administrator. A person may acijuire fiom the finder or thief a good title to a bill or note which has been lost or stolen, and which is transferable without indorsement, provided lie gives valuable consideration for it, and does not act negligently so ! !';, T. ■I , (: '_■'' t- —184— t as to give rise to 11 prusiiniption of fmiul ; ami provided also lie has no notice of tliu loss or tlieft. Any holder who has acquiied a good title may make a valid transfer to another who has notiee of the loss or theft. A hill or note may he transferred either before or after it matures. If trans- fered before maturity, the transfei'ee without notice is not bound by any equities, so called, attiiching to the instrument — such as a ])aymcnt made on it. Nothing will discharge the acceptor or the drawer except payment according to the law merchant, that is, payment of the bill at maturity. If a party pays it before maturity he purchases it an. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 no ^^" 25 2.2 6" V] /I /: 4VV w /^ V '/ Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14SM (716) 872-4503 '^ K^ ^ ^ o"^ —186- A bill or note payable on demand ia jmyable on presentment, and such pre- sentment should be within a reasonable time. This reasonable time is a mixed question of law and fact. The rule now is that if the instrument is payable at a banker's, and in the place where the party receives it, it suffices to present it for payment at any time during banking hours on the business day after it is received. If it be payable elsewhere it suiiices to forward it by the regular post on the day after it is re- ceived, and the party receiving it by post has till the next day to present it. A bill or note payable at sight or on presentation is payable on demand, but a bill or note purporting to be payable within a limited time after a certain event, e. g., after sight, or on a particular day, is not really payable till three days afterwards. These days are called days of grace. By Con. Stat. Can., C. 57, S. 5, it is provided that whenever the day which would otherwise be the last day of grace for the payment of any bill of exchange or promissory note is a Sunday or legal holiday at the place where the same is payable in Upper or Lower ('anada respectively, such bill or note shall be pay- able and the days of grace shall expire on the day next thereafter not being a Sunday or holiday as above mentioned and not before. Con. Stat. U. C, Chap. 42, S. 19, provides that no bill of exchange shall be presented for acceptance on any nonjuridical day. S. 20 provides that all bills of exchange and promissory notes whereof the third day of grace falls on any nonjutidical day, shall become due and payable and be presented for payment on the juridical day next after such day of grace. Stat. 35 Vic. C, 10 Dom., provides that every bill of exchange or promissory note which is made payable at a month or months from and after the date thereof becomes due and payable on the same numbered day of the month in which it ia made payable as the day on which it is dated, unless there is no such day in the month in which it is made payable, and in such case it becomes due and pay- able on the last day of that niontii with the addition in all cases of the days of grace allowed by law. :-'f>' ''...vi, ■'';-,'.;.' ?'"■■■?; ■■<->.'-■'■■ .'■ NOTICE OF DISHONOUR. When a bill or note is refused acceptance or payment, notice of dishonour should be given to every party to it to whom the holder wishes to have recourse. If a party be dead the notice should be given to his personal representatives. This notice of dishonour is usually in writing, but may be by parol. Notice should be given by the holder or on his behalf, or it may be given by or on behalf of any one who, being a party to the bill, will probably be entitled to call for payment. The notice should show that the bill or note has been dishonored. It should ascertain the instrument with reasonable certainty. A protest is usual, but is not neceasfiry in the caae of Inland bills. Con. Stat. U. C, Chap. 42, S. 16, provides that : Protests of Inland or For- eign bills or notes for dishonour, either by non-acceptance or non-payment, may be made on the day of dishonour at any time after non-acceptance, or in case o^ mm-payment, at any time after three o'clock in the afternoon. — 187— iS. IG of the sttinu uut provides that : A notice of Huch protcnt ahull be sent to each of the parties to the bill or note, and such notice shall bo deemed to have been duly served, for all purposes, upon the party to whom the same is addrosse ->t be liable to mere strangers who do not credit the firm on the strength of the name of the retiring partner. The notice ^ould be given to all persons who have previously been in the habit of dealing with the firm and in the local newspapers. The dissolution should also be registered (Rev. Stat. Ont., Chap. 123.) A notice of dissolution is not necessary where it is caused by the death of a partner, by bankruptcy, or by a judgment of the Court. —193— SALE. Sale is a transmutation of property from one man to another in consideration of a money price. If the consideration is some other article the transaction is called barter or exchange. The owner of property may ordinarily sell to whom he pleases, subject to any lien created on the property by mortgage, execution or otherwise. In this Province a title cannot be made by a person, not the owner, to goods which have been lost or stolen. A sale of goods may be by parol or by writing. If the bargain transfers the ownership in a thing to another for a money price it is a sale. The sale is made when the agreement is made. The completion of the sale does not depend upon the delivery of the goods by the seller or the payment of the price by the buyer. By the mutual assent of the parties to the terms of the sale the buyer acquires at once the ownership, and all the rights and liabilities of the ownership, so that in case of any loss or depreciation of the articles purchased the buyer will be the sufferer and he will be the gainer by any increase in their value. A parol sale of goods miglit by the common law have been and may still where the value is under $iO be in every instance effected, either by an agree- ment to be completed at once coupled with tender, part payment, or a delivery of the goods or by an agreement to be completed in future. A mere parol proposal to buy or one side and an acceptance on the other followed by the separation of the parties, without more, would not constitute a sale, fo" the separation ended the negotiation; but if the proposal and acceptance were followed by a tender of the goods by the seller, or of the price by the buyer, or if any part of the goods had been delivered, or any part of the price paid, the sale would have been complete. The rule is laid down that after payment of earnest and before payment of the whole price the .property is in the purchaser subject to the vendor's lien, but the vendor may upon finding the purchaser delay to accomplish his bargain, go to him and request him to do so, 'and if he, after that, delays for an unreasonable time, he may treat such further delay as equivalent to a consent to rescind the sale. Where, however, the property has once passed, the mere failure of the purchaser to pay the price does not entitle the vendor to rescind the sale. If the agreement is that if the purchase money be not paid by a given time the goods may be resold, the vendor may resell on non-payment at that time. As to sales to be completed at a future time the rule is : "That if nothing re- mains to be done on the part of the seller as between him and the buyer, before the goods purchased are to be delivered, the property in the goods immediately passes to the buyer and that in the price on the seller. But if any act remains to be done on the part of the seller, then the property does not pass until that act has been done. When the value of the goods is over $40 the sale is governed by the pro- visions of the 17th Section of the Statute of Frauds, and the 11th Section of Chapter 117 of Rev. Stat, of Ont., both of which are referred to in the chapter on contracts. IK i f* li I t-L'Sa i:^ ^ —194— The pnrchasor has, on tho completion of a Hale, a right to the delivery of the goods to him. If the sale is for cash he must pay or tender tlie price. If on credit he need, of course, pay nothing before requiring delivery. Goods are delivered when they are placed in the purchaser's power, so that he may immediately remove them and cannot be prevented from so doing. Delivery to a carrier named by the purchaser is a delivery to him and dis- charges the seller from further responsibility. If no directions as to shipment are given by a purchaser residing at a distance the vendor should send the goods by the usual moile of conveyance. Until delivery the vendor should take reasonable care of the goods, and i?e will be responsible for want of such care. If goods arc sold, and there is not an immediate delivery, and an actual and continued change of possession, the transaction must be evidenced by a bill of sale supported by an affidavit of the purchaser as to the good faith of the transaction ; and the bill of sale must be registered within five days after its execution, otherwise the sale will be void as against subsequent purchasers or execution creditors (Rev. Stat, of Ont., Chapter 119, Section 5.) This precaution has been adopted by the Legislature to prevent frauds by collusive sales. WARRANTY. The vendor or seller of an article must strictly comply with any warranty he may have given. Such warranty may be express or implied. Parties dealing in a particular business are presumed to contract with refer- ence to the well established usages and customs of trade in that business, and such usages or cubtoms are imported by law into the contract without being ex- pressly mentioned. The ordinary' rule is that where an article is offered for sale and is open to in- spection by the buyer, and no artifice or trick is used to conceal any defects in it, and no misleading or false statement is made by the seller respecting it, the buyer takes it at his own risk, and the law implies no warranty as to its quality. The seller may puff or praise his goods as most sellers will, and this puffing or praising may exceed the limits of truth yet it will not amount to or be con- strued as a warranty or fraudulent representation. On the sale of goods if nothing is said as to the character or quality of the thing sold, the buyer takes the risk of all latent defects unknown to the seller at the time of the sale, all that the seller answers for being that, as far as he knows, the article is what it appears to be. Under a contract to supply goods of a specified description which the buyer has no opportunity of inspecting, the goods must not only in fact answer the specific description, but must be saleable or merchantable under that description. If the seller is informed that an article of a certain quality, character, or description suited for some specific purpose, is required, the law implies an agree, ment on his part that he will supply to the purchaser an article of tho quality, character, or description ordered and reasonably fit for the purpose for which it is required. A manufacturer of an article impliedly agrees that all goods manufactured or —195— sold by him foi- a apeciflc purpose ninl to lie UBcd in u paitietiliir way, arc roaenn- ably fit and proper for the purpose fur wliich he professes to nialio tliuni, and for whieh they are icno^vn to be re4|uired. In cases of sale by sample there is an implied undertaking that the sauiplo is fairly taken from the bulk of the commodity. "PAYMENT AND TENDER." Payment nmst be made in the currency of the country if re(|uired. A man m not bound to accept foreign money in payment of a delft due here. It must be made to the creditor, or to some one duly and properly authorized to act for him. A creditor has, on failure of his debtor to pay at the proper time, the right to sue for the money duo him. The debtor may, however, tender the debt at any time before action is brought, an. "^"'" \True Discount §184.15. 5. What is the true discount of §3,450, due in 1 year and 8 months, at 9% ? Ans. $450. 6. A mortgage for §5,000, and Int. at 5% dated 1 Jan., 1882, and due 1 Jan., 1883, is sold 15 June, 1882, at its present ivorth. What is the present worth- discount at 5% ? Aui. §5,110.87. Note.— When payments aio to be made at different times, wi'.hojt intorost, tind ths present worth of each payment separately, and take their num. BANK DISCOUNT. Banff Discount is the simple interest ou the Face of a Note or Draft, for the time it has to run, paid in advance. It may be com- puted by any of the methods given for simple interest. Ou notes without interest bank discount is reckoned on their f-ice. Ou interest bearing notes it is reckoned on the amount due at maturity, or their face plus the interest for the full time of the note. The Proceeds of a note is the amount received by the holder from the bank when the note is discounted. True discount, as already shown, is simply the interest on the tiue present worth for the given time and rata. The difference between bank and true discount is equal to the hiterest on the true discount for the given time, plus the interest on the principal for three days. h i! m — 200 — EXAMPLE. ' What is the bank discount on a note for $15,958, having 60 days to run, at 6 per cent. ? Solution— ^)$159.58 Interest for 60 days. 7.98 3 $167.56 63 Face of Note $15,958 Discount 167.58 Proceeds $1,5790.44 2ad Ex.— Find the Bank Discount and proceeds of the following Interest-bearing note, if discounted at Bank, Nov. 5, 1881, @ 6 "/>. $3,000. Kingston, Sept. 16, 1881. Four months after date, I promise to pay A. L. Davis or order, three thousand dollars, value received, with interest @ 6 /». Analysis. — The interest on the note for 4 mos. and three days is $51.25. $8,000 + $51.25 = $3,051.25, the amount of the note at maturity, (19th January, 1882.) The discount on $3,051.25 for 75 days, (Nov. 5th to Jan. 19th) at f is $38.14. The Proceeds are $3,051.25, less the discount $38.14, or $3,018.11. Hence to find the Bank Discount and Proceeds. When the Face of the Note or Draft, Rate of Discount and Time are given. Rule I. — Compute the interest on the face of the note for the given rate and time of discount, (including 3 days grace), and the result will be the Bank Discount. IX. — Subtract the bank discount from the face and the result will be the proceeds. HI. — If the note bears interest, compute the interest for the full time of the note, (including 8 days grace), and add it to the face. This will be the amount at maturity, upon which the discount must be computed for the unexpired time as above. I. — What is the Bank Discount on a 90 days note for $1,800 @ 6 "/o. Ans. $27.90 II. — What is the Bank Discount on a four mos. note for $1800. @ 7 i". Ans. $43.05. m — 20I — III. — What are the Bank Discount and Proceeds of a 3 mos. note for $8,600 @ 5 /o. Discount, $46.50. Proceeds, $3,553.50. IV. — Find Proceeds of a 5 mos. note for $950 @ 7^"/". Ans. $929.40. v.— A merchant sold 60 bbls. flour at $5.70 per bbl., for which he received a note payable in 5 months. How much money will he receive at a bank for this note, discounting at 7 f. Ans, $278.95. VI. — If the following note was discounted 8th April, 1883, how long had it to run and what were the Proceeds ? $980.50. Kingston, 4th Jan., 1882. Six months after date, for value received, I promise to pay J. A. Scott or order, nine hundred, eighty and -^^^ dollars at the Federal Bank. 0. E. TELGMANN. Ans. 90 days. Proceeds, $965.79. VII. — Required the time when the following note will become legally due and the Bank Discount, provided it was discounted 14th July, 1882, at 7 f. $590. Montreal, 22nd April, 1882. One hundred and twenty days after date, for value received, I promise to pay David Johnston or order, five hundred and ninety dollars, at the Molson Bank. WM. VANESS. Ans. Aug. 23rd, 1882. Discount, $4.59. VIII.— If the following note was discounted at the bank, Nov. 1st, 1883, @ 6 "/o, what were the Discount and Proceeds ? $1,000. Prescott, Jan. 7th, 1883. One year after date, for value received, I promise to pay R. Nelson or order, one thousand dollars, with interest @ 7 f. Discount, $12.49. Proceeds, $1,058.09. IX.— Required the legal time of maturity of the following note, the unexpired time, and the proceeds, its having been discounted 10th April, 1882, @ 6 "/o. w — 202 — ii, I ■"■■ rl* $175.50. ^ Trenton, 15th March, 1882. Ninety clays after date, for vahie received, I promise to pay E. P. Dunn or order, one hundred, seventy-five and ^^ dollars at the Montreal Bank, with interest. L. A. FELL. Aus. IGth June, 1882. Unexpired time G7 days. Proceeds, $176.23. X. — What would be the Proceeds of a 120 days note for $3,250, with interest at 6 "f>, dated Nov. 10th, 1885, and discounted Jan. I2th, 1886, @ 10 y. Ans. $3,261.85. TO FIND THE FACE OF A NOTE OR DRAFT WHEN THE PRO- CEEDS, TIME AND RATE ARE GIVEN. Business men sometimes wish to obtain a certain sum of money from a bank on their endorsed note, payable at some future times. Suppose R. Findlay wants $75 from the Federal Bank on 3 months time, and to obtain it has his note endorsed by L. A. Fell. For what sum must it be drawn, so that when discounted for ninety days @ 6 i" it will produce $75 ? Anai.\sis. — The Bank will charge a discount of $0.0155 on every $1 of the face of the note, leaving as proceeds $0.9845. Since a note of $1 discounted for 93 days @ 6 °/> will afford $0.9845, proceed, to afford $75, proci.v.ds the face of the note must be as many times $1 as $0.9845 is contained in $75, or $76.18. Hence, Rule. — Divide the given sum by the proceeds of $1 for the given time and rate, (including three days grace), and the quotient will be the face of the note. To find the Bank Discount, subtract the proceeds from the face. EXAMPLES. 1. — What is the Face of a Note, drawn for 4 mos. and 12 days, which yields $128 when discounted at the bank ^ 6 /". $130.95. 2. — A. McDonald is indebted at the Bank in the sum of $560, which he wishes to pay with a note at 3 mos. For what must the note be drawn, discount @ 7 "/■. Ans. $570.32. 3.— E. F. Gaulin owes me $720. Not having the money he gives me his note at four months. What must be the face of the note, so that when discounted at Bank at 6 /, it will yield the amount of the bill. Ans. $705.07. &: — 203— 4.— For what amouut must a note be made for ninety days to afford $7520, if discounted at the Bank at 8 f ? Ans. $7678.09.. MISCELLANEOUS PROBLEMS IN INTEREST, DISCOUNT AND BANK DISCOUNT. 1.— What is the interest of $108.60 from Sept. 12th, 1886, to May 6th, 1890, at 8 -/o ? Ans. $31.71. 2. — Required the amount of $804.25 for I year, 5 mos., 10 days, at 7i °/o ? Ans. $891.88. 8. — At what rate per cent, will $216 yield $122.22 in 5 years, 7 mos., 27 days ? Ans. 10 °/.. 4.— What principal will produce $49.20 interest in 1 year, 4 mos., 12 days, at 6 /» ? Ans. $000. 5. — Required the time in which $800 will gain $47.25 interest at 6 f ? Ans. 2 years, 7 mos., 15 days. 6. — What is the present worth of $260 due in 8 mos., witohut interest, the current rate of interest being 6 /= ? Ans. $250. 7. — What is the present worth of $805.75, due in 9 mos., 6 days, without interest, current rate 9 y- ? Ans. $286.01. 8. — Required the amount tor which a note due in 90 days must be given that the proceeds may be $1969, discounting at 6 f ? Ans. $2000. 9. — Required the proceeds of a note for $900, due in 6 mos., dis- counted at bank at 8 »/. ? Ans. $803.40. 10.- -What must be the face of a note, so that when discounted at the bank at 7 % for 1 year, 2 mos., the proceeds will be $500 ? Ans. $544.81. 11.— A note dated Feb. 20th, 1886, for $5,000, with interest at 7 %, payable in 90 days, is discounted at bank at 7 %, March 18th, 1880. Required net proceeds ? Ans. $5062.85. 12.— A note of $450 dated April 3rd, 1886, and payable in 90 days, without interest, whs discounted May 10th, 1886, at the bank at 6 %. Find the proceeds ? Ans. $445.80. — 204 — LOSS AND GAIN. Profit and Loss is a commercial term used to express a gain or loss in business transactions. It is usually represented by a certain rate per cent, on tbe first cost of goods. The principles of percentage are applied to many of the most com- mon business transactions. Among the most important from the market price, and still make 15 /« profit. Ans. $4,735. 13. — By selling a piece of cloth at $2 per yard I lose $6, had I sold it at $4 a yard I would have gained $18. How many yards did I sell ? Ans. 12 yards. 14.— A merchant marked a piece of silk at 25 °/<> above cost, and then sold it at 20 y° less than the marked price ; did he lose or gain and how much ? Ans. Sold at cost. I I •lii tel: — 206— 16. — If cloth wheuaoltl at 25 f loss, brings $5 a yard, what would be the loss or gain if sold at $6.40 a yard ? Ans. 4 °/° loss. 16. — If a man buys goods at a certain price, 10 and 5 f off, and sells them at the same price 5 /<> off, What per cent, profit does ho make ? Ans. 11^ »/.. 17. — If I mark goods at an advance of 40 °/°, and then sell them at a discount of 30 °/o off the marked price. What is the result ? Ans. Loss 2 f. 18. — If I mark goods to be sold at a gain af 25 "/. on cost, what per cent, discount can I allow from the marked price and still make 5 °/°. Ans. 16 i". 19. — The list price for door handles is $4.50 per set, less 40 °/° and 10 %. What is the net price ? Ans. $2.43. 20. — A horse was sold for $058, which was 16^ % more than it cost. What was the cost ? Ans. $564. BROKERAGE AND COMMISSION. Brokerage and Commission is an allowance, generally of a certain per cent., made to an agent for transacting business for another. An agent, factor, or broker is a person who transacts business for another. An agent who buys or sells for a person is usually called a commis- sion merchant. An account sales is a detailed statement, rendered by the commis- sion merchant to the shipper, showing the sales, the charges or expenses incurred and the net proceeds. Brokerage or Commission is usually computed at a certain rate per cent, on the amount of sales, collection or investment. The general principles of percentage are applied. CASE I. To find the Brokerage or Commission on any given sum. for — 207 — Ex.— -My agent sells goods to the amount of 84,500. What is the commission @ 8 % ? Analysis.— If I allow my agent .03 on every $1 worth of goods ho sells, bis commission would be $4,600 X .08, or $185.00. CASE n. Sometimes business men send their agents a certaia amount of money, instructing them to retain their commission and invest the balance. In this case should the percentage be computed on the whole amount received, the agent would receive commission on his commis- sion, which would be incorrect. Ex.— A. McDonald sends his agent in Montreal $1545, with instruc- tions, after deducting his commission at 8 %, to. invest the balance in wheat. "What will the agent invest and what will be his commission ? Analysis.— In order that the agent may invest 81 and have his com- mission .08, he must receive $1.08. Hence he can invest as many dol- lars as $1.08 is contained times in $1545, or $1500. Subtract this amount from 81545 and it leaves his commission $45. 1. — Commission merchant sold 540 bbls. flour at 8G.87^ a bbl. What was his commission @ 8 % ? Ans. $108.28. 2. — A lawyer collected 65 % of a note of $950 and charged 6 J % commission. What was his commission ? Ans. $88.59. 8— .An attorney charged $75 for collecting rents to the amount of $1125. What was the rate of commission ? Ans. 6§ %. 4. — An agent charged 2^ % commission for buying produce, and his commission was $750. How much produce did he purchase ?• Ans. $80,000 6.— A merchant paid a broker f % for a draft of $1280 on New York. How much was the brokerage ? Ans. $4.80. 6. — Paid a broker $82 for investing money in bank stock selling at par, paying him a commission of | %. How much did he invest ? Ans. $12,800. 7. — Sent my agent in Chicago $5,000, with instructions to purchase wheat at $1.10 a bushel, hfter deducting his commission at 2^ %. How many bushels of wheat did he buy ? Ans. 4,484.59 bus. ■M li*¥ !1! <: —208— 8. — Sold wheat on a commission of 5 %. Invested proceeds in tea at 2 % commission. My whole commission was $70. What wab the value of the whf^at and the tea ? Ans. Wheat, $1020 ; tea, $950. 9. — My agent sold 102 tuhs of butter, worth $20 a tub at 8 % com- mission and invested the proceeds in flour at $G a barrel, first deducting 2 °/o commission for buying. How much did he invest in flour ? Ans. $1940. 10. — A commission merchant bought $1800 barrels flour at $5.75 abarr<:l, receiving a commission of 8^ °/°, and invested the net proceeds in cofifee at 28c. per lb., first deducting 2 °/<> commission. How many pounds of coffee did ho purchase ? What was his entire commission ? Ans. $25,256.9 lbs. ; $408.06. STOCKS. A Corporation is a body authorized by a general law, or by a special charter, to transact business. A Charter is the legal act of incorporation, and defines the powers and obligations of the incorporated body. Capital or Stooll is the money paid in to carry on the business of an individual corporation or firm. A Share is one of the equal parts into which the stock or capital is divided, and is usually $100, though sometimes $50 or $25. Stocliholders are the owners of one or more shares of the capital stock, The Par Value of Stocli is the number of dollars named in each share. Stock is ^^ Par when the shares sell for their face. Above Par, at a premium, when the shares sell for more than their face. Below Par, or at a discount, when shares will not sell for their face. The Premium and Discount on stocks are generally reckoned at a certain per cent, on the par value of the shares, and the ordinary rules of percentage apply. ^ ' v ^V * — 2og — Ex. — What is the value of 20 shares of R. R. stock at H per cent, premium, par value being $100 ? Solution— 20 x $100 = 12,000 x $1.08 = 92,160. Explanation — Each share is worth 8 per cent, more than its ori- ginal value. Hence $1 stock is worth $1.08; then $2,000 stock is worth 2,000x1.08 or $2,160. 1. What sum must be invested in 8 per cent, stock @ 120 so as to produce an income of $560 ? Aus. $8400. 2. Which is the better investment, 9 per cent, stock at 25 per cent, premiuix., or 6 per cent, stock at 25 per cent, discount ? Ans. The latter. 8. What must be given for 60 shares of C. P. R. stock, par value $50, @ 8 per cent, discount ? Ans. $2425. 4. I sell out Bank stock which pays 3 per cent. @ 96, and invest the proceeds in Railway stock, paying 5 per cent, at par. How much per cent, is my income increased ? Ans. 1 4-5ths. EXCHANGE. By Exchange is meant the method of paying debts in places dis- tant from each other without the transmission of money, and such a large part of the business of the country is transacted through this medium of exchange, that a knowledge of this subject is indispensable to one engaged in business. Foreign Bills of Exchange are usually drawn in the money of ac- count of the countries iu which they are payable. Thus, drafts on England are drawn in pounds, shillings, and pence ; on France, in francs, &c. Nearly all our exchanges with Europe are effected through the great financial centres, London and Paris. Hence we shall deal with exchanges on London and Paris only in this work. Exchange on London (Sterling Exchange) is quoted by giving the value of £1 in dollars and cents. The par value £1 is $4.86}. Exchange on Paris is quoted by giving the value of one franc in dollars and cents. The par value of 1 franc is $.185. r •1 — 210 — "When exchange is quoted above these vahics it is at a premium, and when below, at a discount. Ex. — Find the cost of a Bill of Exchange pn London for £120 @ $4.8t). Solution— £1 costs $4.85, and $120 will cost 120 times $4.85, or Aim. $582. Ex. 2. — Find the face of a Bill of Exchange on London that costs $4,201.28, if exchange is quoted at 4,8066. Solution— 4.8665 )426' .2.3 £'875.625 20 8 12.500 12 d 6.000 Analysis— 14.8065 will buy £1. Hence $4261.23 will buy as many pounds as $4,8065 is contained times in $4261.24, or £ s d £875.625 = 875 12 6 TO REDUCE SHILLINGS, PENCE AND FARTHINGS TO THE DECIMAL OF A POUND. EuLE. — Multiply the number of shillings by five, and write the product as hundredths. 11.— Write the number of farthings in the given pence and farthings as thousandths, adding one if the number is 12 or more, and two if it is 86 or more. III. — The sum of these will be the required decimal of a pound. Ex.— What is the value of £2 8s 6id, at $4.80 ? Solution— £2 38 6id = £2.177x4.80 = $10. 45. Analysis— We reduce the shillings, pence and farthings to the decimal of a pound by preceding rule. Thus— 8 shillings are ^ of a £ =.15 of a pound (3 x 5). 6^ pence are ^<^^ of a £, multiply both terms by 4^ and you have ^^5^= .0275. A sufficiently accurate result may be obtained by expressing the pence and farthings as farthings and adding 1 when the product is 12 or upwards, and 2 if 86 or upwards, and calling the results thousandths. Thus 6i X 4 = 26 plus 1 equals .027. .15 plus. 027 = .177 of a pound, the required decimal, annexing the decimal of the pounds we have £2.177 x 4.80, gives $10.45. -2H- AVERAGING ACCOUNTS. To average an account is to find the average or mean time wlion the payment of the balance of an account may be niaile without losb to either party. The time when the account falls due by average, is called the Equated Time or Average Uato. Simple Average is the process of averaging an account containing debit or credit items only. By assuming a certain date as the time of settlement we find what the loss or gain of interest would be to the payer, if all the bills wore paid by him en that date. "We next find in how many daya the bal- ance of the account would produce a sum equivalent to this loss or gain of interest and find the true day of settlement by counting backward or forward this number of days from the assumed date. Any date may be assumed as the date of settlement this is called the Focal Date. For convenience the latest date is generally used. Any rate of interest may be used but the legal rate G"/> is usually com- puted. Ex — .At what time may the following Bills of Merchandise be paid in one amount without loss of interest to either party ? , Due Feb. 3, 1886, a bill of $4.50 II II 24, II II II I tiOO II Mr. 25, II II M II 750 II Apr. 20, II M II 600 Solution— Assume 20 April as Focal Date. The Interest on $450 from 3 Feb.— 20 Apr. is $5.78 II II II 500 II 24 II — II II II 4.67 ,1 II ,1 750 II 25 Mr.— II i. .. 3.13 M II .1 600 II 20 Apr.— n i. n .00 Amount of Account $2,300 ' Total Interest $13.58 $2,300 will earn $0.3833 in one day 2,300 M II $13.58 in as many days as $0.3833 is contained times in $13.58 or 35 days. Hence, Rule. — Assume the latest date on which any of the items is due as the Focal Date. Compute the interest on each item of the account from the date it is due (its date plus its term of credit) to the Focal Date. Divide the total amount of interest by tlie interest on the total : May 20, 11 II II II 245 on 4 June 25, It M .1 II 375 on 4 ISept. 15, II tl II II 625 on 3 — 212 — amount of the bills for one day, and the quotient will be the number of days to count back from the Focal Date. 2. — When is the following account due by average ? April 15, 1886, a bill of $400 on 3 mo. credit Am. Oct. 14, 1886. 3.— Street, Clark & Co., Dr. . 1886 May 9, To Mdse. $340 on 4 mo. credit June 6, tl " 530 on 4 mo. h July 8, II II 213 on 3 nio. n Aug. 30, II II 150 on 4 mo. n Required, the equated date of payment for above account. Ans. Oct. 9, 1886. 4. — Jones, Walker & Co. bought of Gildersleeve & Reeves, several bills of goods, as follows : March 3, 1885, $250 on 3 mo. credit April 15, It 180 on 4 mo. n June 20, n 325 on 3 mo. n Aug. 10, II 80 on 3 mo. n Sept. 1, It 100 on 4 mo. tt What is the equated date of maturity ? How much would pay the account Dec. 1st. 1885? ^ru. August 30th, 1885. $949.49. The following is another method of arriving at the average date of payment. 1.— A owes B $300, of which $200 is due in 8 months, and $100 in 6 months. When will the payment of $300 equitably discharge the debt? SOLCTION- -$200x3 = $600 100x6= 600 $300 )$1,200 4 Ana, i months. Analysis. — A is entitled to the use of $200 for three months, which equals the use of $600 for 1 Jionth, and to the use of $100 for 6 months, which equals the use of $600 for 1 month ; hence, he is en- titled to the use of $300 until it equals the use of $600 + $600 or $1200 for 1 month. It will take $300 as many months to equal the use of $1,200 for 1 month, as $300 is contained times in $1,200, which is 4. Hence the payment of 300 in 4 months will equitably discharge the debt. . —213- 2.— FinJ equated date of the maturity of the following : Due June 3, 1886, $450 i> M 24, „ 500 i> July 25, II 750 " Aug. 20, M 600 3.— Find equated time of payment of the following account ? John BroWxV Dr. 1886 Mar, 15, To Mdae. @ 60 days $324 May 14, „ „ „ 30 „ 676 June 12, M „ ,1 3 mos, 480 July 15, I. I, „ 90 days 225 Aug, 3, ,1 „ „ 3 mos, 422 Ans. Aug. 11, 1886, EuLE.— Find the date of maturity of each item in the account ; then multiply each item by the number of days between the maturity and the Focal Date. Then divide the sum of these products by the sum of the items, and the result will be the number of days to count backward or forward from the Focal Date. ^f^' — 214 — COMPOUND AVERAGE. Compound Average is the process of finding the mean or equated time, for the payment of the balance of an account containing both debits and credits. The object of averaging an account current may be either to find a date for settlement in the future, or to determine the time from which to compute interest on the balance, when the average date is past. Ex. — When is the following account due by average ? Dr. W, W. Squire. Cr. 1883 June 6, To Mdse. @ 30 days M 20, M II I. 60 II July 5, M II II 3 mos. 26. 3 mos. 456 384 216 552 1883 July 25, By Cash $400 Aug. 10, II II 375 II 10, II Note® 60 days... 288 SoLUTiox — Assume Oct. 26 the latest date due on either side as the Focal Date. Interest on $456 from July 6- -Oct. 26 is $8.36 II 11 384 II Aug. 19- — M II II 4.29 M II 216 II Oct. 5- - II II It .76 II II 552 It II 26- - II II II .00 Total Debit $1,608 Total Debit Interest $13.41 Interest on $400 from July 26— Oct. 26 is $6.00 11 It 375 It Aug. 10— II II II 4.75 II II 288 It Oct. 12— It II It .67 Total Credit $1,063 Total Credit Interest $11.42 The debit balance of interest is $13.41 less $11.42 or $1.99. The debit balance of the account is $1,608 less $1,063 or $545. $545 will earn $.0908 Interest in 1 day. $545 will earn $1.99 in as many days as $.0908 is contained times in $1.99 or 22 days. Therefore the account is due by average 22 days earlier than Oct. 26, or Oct. 4. Hence, Rule.— Compute the interest on each item of the account from the time it is due (its date plus its term of credit) to the Focal Date* Find the total debit interest, and the total credit interest, then divide the difference between the debit and credit interest bv the interest on the balance of the account for 1 day, and the quotient will bo the number of days to count backward or forward from the Focal Date. If the balance of the account and the balance of interest be in favor of the same side count back. If on opposite sides count forward. —215— 2 — When is the following account clue by average ? Dr, Fred. D. Allkn. Cr. 1886 Sept. 12, To Mdse. @ 30 days ^027 Oct. 15, .. I. I. 30 .. 342 Nov. 18, M .1 H 60 ,. 212 Dec. 1, II 11 11 30 n 175 1886 Oct. 10 My Cash $.100 Nov. 20 300 II 30 1. 250 8. — Average the following account : Dr. John J. Astor. Am. Nov, 20, 1886. Cr. 1886 Mar. 1 . To Balance old Acct. $ 325 Apr. 16, II Mdse. @ 2 mos. 623 May 11, .1 II n 2 II 1722 June 16, II II II 30 days 975 July 30, II II II 60 I. 146 Aug. 17, .. .1 H 30 .1 1650 1886 Mar. May 20, July 30, Aug. 31, 16, By Cash $ 250 " 11 M 300 I, Note (ff) 30 dys 1000 II Cash 560 Ans. July 21, 1886. 10 PARTNERSHIP & PARTNERSHIP SETTLEMENTS. A partnership contract is made by two or more persons to combine their property, labor, or skill, for the transaction of business for their common profit. Each person thus associated is called a Partner. The money or property invested by all the partners is called Capital Stock, Joint Stock, or Stock in Trade. The profits to be shared by each of the partners are sometimes called Dividends. Each partner's stock, increased by gain or diminished by loss at the time of settlement, is called his interest in the business. Partnership Settlements. — The object of a partnership settlement is to ascertain the relations in which the partners stand to the business and to each other. Such settlements should be effected at least once every year, and must bo made when a partnership is dissolved. The process of adjusting the accounts of a company is illustrated in the examples below. B5TS! l5:! — 2l6 — SIMPLE PARTNERSHIP. When the capital of the several partners is invested for the same length of time, and they are to share „ains and losses in proportion to the capital invested. Ex. — A, B, and C, entered into partnership. A puts in $8,000 ; B, $4,500 ; and C, $8,500. At the time of the dissolution of the firm , the net profits were $6,400. What was each partner's share of the profits ? The whole capital invested is $16,000. Solution— Since $16,000 Capital earns $6400 .-. $1 .. M 6400^16., S^n — 2ig — MEASURING LUMBER. Rule. — Multiply the length of the board in feet by the width in inches and divide by 12. Ex. — How many square feet in a board 21 feet long and 18 inches wide ? Solution— 21 x 18-f 12 = 31i sq. ft. Ans, TO FIND THE CONTENTS (BOARD MEASURE) OF JOISTS, SCANTLING OR PLANK, MORE THAN ONE INCH THICK. Rule — Multiply the width in inches by the thickness in inches and this by the length in feet and divide by 12. Ex. — What is the board measure of a plank 18 feet long, 10 inches wide and 4 inches thick ? Solution— 18 x 10 x 4 e.^ cl a = 60 ft. A US. 12 TO FIND THE VALUE OF A GIVEN NUMBER OF FEET OF LUMBER AT A GIVEN PRICE PER THOUSAND. Hide — Multiply the number of feet by the price per thousand and point off three figures from the right-hand. Ex.— What will 719 feet of lumber cost at $8 per thousand ? SoLUTiON-719x8 ^ ^5^52 Ans. Ex. I.— What will it cost to put a floor in a room 20 feet long, 18 feet wide, with plank one and a half inches thick, worth $12 per thousand (board measure.) Ans. $G.48. Ex. II. — How many feet of lumber in 14 planks, IG feet long, 18 inches wide and 4 inches thirck. Ans. 1,844 feet. TO FIND THE NUMBER OF COMMON BRICKS IN A WALL. Bule. — Multiply the length of the wall in feet by the height in feet and that by its thickness in feet, and that again by 20, and the product will be the number of bricks in the wall. Ex. — How many common bricks in a wall 40 feet long, 20 feet high and 12 inches thick ? Solution— 40 ft. length, x 20 ft. height, x 1 ft. thick, x 20= 16,000 Ans. I! I '• ^T I I J — 2^0 — LATHS. Laths are usually 4 feet loug, 1^ inches wide and ^ inch thick. One thousand laths set J inch apart should cover 55 square yards. SHINGLES. Shingles are usually 18 inches long and, on an average, 4 inches wide. One thousand shingles laid 4 inches to the weather should cover 109 square feet ; laid 4J inches to the weather, 120 square feet, and laid 5 inches to the weather, 183 square feet. Ex. — How many shingles for a roof 60 feet long, rafters 20 feet (two sides,) shingles laid 4 J inches to the weather. Solution— 60 x 20 x 2 120 Am. 20 thousand shingles. MEASURING LAND— TO FIND THE NUMBER OF ACRES IN A FIELD WITH SQUARE CORNERS. Rule — Multiply the length by the breadth, and divide the product by IGO if the measurement is made in rods; by 4,840 if made in yards, or by 48,560 if made in feet. When the length of two opposite sides is unequal, add them to- gether, take half the sum and multiply by the breadth, then divide the product as above. TO FIND THE NUMBER OF ACRES IN ANY 3-SIDED FIGURE. Rule. — Multiply the longest side by one half the distance from this side to the opposite angle and divide the product as above. ■ — 221 — JULY EXAMlNATaQNS, 1585. THIRD AND SECOND CLASS TEACHERS. Values 10 12 7+5 20 18 9 BOOK-KEEPING. Examincr.—CoKyKLivs Donovan, M. A. 1. What is meant by: Assets? Bonded Goods? De- benture ? Good Will ? Lion ? Mortgage ? Power of Attor- ney ? Staple Goods ? Usury ? Voucher ? 2 (u) Briefly state the essential requisites of a promis- sory Note. (b) Brown gives Black his note at 4 mos. from to-day for $150, negotiable and payable at Bank. Write the note, dating it from Toronto. 8. Journalize : (a) Commenced business with cash §1,000, merchandise $1,000, notes against sundry persons $500. {b) 'Bought of John Jones for cash, tallow worth $100, and immediately sold it for $140. [c) The Dominion Bank has discounted my note against Harris for $1,000 ; discount $17.50, cash received $982.50. {(I) Sold my house and lot to Green for $2,500. Re- ceived in payment cash $1,000, merchandise $500; balance to remain on account. (e) Consigned to Henry & Co., Montreal, goods ^o be sold on my account, invoiced $045. Paid freight o same in cash $30.50, and gave my note for insurance of dv. $10.85. 4. Classify the foregoing accounts according as they are "Eesources and Liabilities," or "Losses and Gains." 5. Post all the items in No. 8. 6. State the object, and briefly describe the process, of closing the Ledger. i r^ R — 222 — EXAMlPAT'lGnS, * 1886. SECOND CLASS TEACHERS. PRECIS WRITING AND INDEXING. N k Values 10 25 tI- J; IFa n CijvtiS-MB Examiner — Cornkmus Donovan, M. A. 1. (rive the sense of the following passage in as few words as possible : That it is hard to brave a laugh, — this is not disputed. That there is a power in sarcasm which may make the con- dition of the Christian a condition of persecution, — this is not disputed. But when the battery of jest and contempt that is brought to bear on him makes him shrink ashamed of his profession, we cannot accept the difficulty of the encounter as an apology for his defeat. We really want terms in which to express our sense of the weakness and infatuation of men who, quite aware that they have right on their side, and thoroughly persuaded that reason gives an unreserved verdict in their favor, are nevertheless abashed and overcome by the ridicule of some thoughtless jester, whose intellect they pro- bably hold cheap, and whose good opinion they consider val- ueless. 2. Write a Precis of the following document : Office of the Provincial Board of Health, Toronto, July 17th, 1882. Dear Doctor, — You may have observed that the Provin- cial Board of Health, in common with many Boards in the United States, has decided upon publishinT a Weekly Report of disease prevailing in the different parts of the Province, noting, at the same time, the accompanying meteorological and other conditions. In order to make such reports of any real value in inves- tigating the causes of disease, it will be necessary for the Board to appoint, in various localities, correspondents whose weekly returns may enable it to deduce practical conclusions therefrom. -223" Values myes- br the whose usions 10 5 + 5+ 5 To this, end tlie Board has addressed this letter to a num- ber of medical practitioners throughout the Province, and it requests you to consider whether you will accept the position of correspondent to the Board from your district. Leaving out of view the bearing of the proposed work upon the question of Sanitary Science, and looking at it from a purely professional standpoint, the investigations to be made as CO the cause and nature of disease will be as important to medical practitioners as many others in which they are en- gaged and to which they gladly devote more time. The filling up of the blank forms will require only a few minutes each week ; and should you bo willing to devote that time to it, be kind enough to inform the Secretary at once, so that there may be sent to you stamped forms similar to the one enclosed, and a blotter for your convenience and subsequent reference. Should you decide that you cannot do so, you will confer a favour by informing the Board of some medical practitioner in your locality who, in your opinion, would be willing to undertake tlie work. The reports and remarks of correspondents will be treated as confidential, a general average of all the reports being published, and the board exercising discretion m mentioning the names of particular localities. Although this work, like that of the Meteorological Re- porters in Ontario and of the Disease Reporters in many States of the Union, is done gratuitiously, yet this Board trusts that the measure of good accruing from this scheme will be such as to encourage it to expect, in the near future, greater pecuniary facilities for making the reports, and the results to be obtained therefrom more nearly perfect. Trusting that you may find it convenient to co-operate with the Board in this matter, I have the honor to be, Sir, Your obedient servant, P. H. Bbyce, Secretary. 3. Show how you would index the contents of the fore- going document. 4. Give specimens of your method of indexing («) out- going letters, (6) letters received, and (c) bills or accounts, so that you could make prompt reference to any particular docu- ment. , - ■ ■ ■ -^X ■■■■-;', ■■■..." 'i m P"^ — 224 — '¥ ACCEPTANCE, — A receiving wo an to \t\m\ the acceptor to payment. 2. A Draft accepted. AD VA IjOHEM. - According to value ; |)ercontage on invoice price. APPRAISE. -To estimate the value of goods or property. ASSETS. Resources ; property in possession or money due. ASSIUNMEN T. — The transfer .)f property to Assignees. BALANCE OF THAUE. TUo difrerence between the value of the Expoita and Imports of a country. BANKRUPT. — One who is unable to pay his de))t8. BONA FIDE.-\n good faith. BLANK CREDIT, — Privilege of one house to draw upon another to a specified amo'int. BONDED (100 DS. — Those held in the (bonded) warehouse for payment of duties. CIIARTER.^A foriual writing conferring a right or privilege, 6y;/>/<7//..- Supplement to a will. COUNTERSKJN, -To sign as Secretary or subordinate officer. COUPON. — An interest certificate attached to a bond. DEliENTURE, — A bond on which municipalities borrow money. DIVIDEND, — The portion of a stockholder, when profits are divided. DUPLICATE, — A copy or transcript of anything. EMBARGO. — Prohibition of vesels from sailing. EMBEZZLEMENT. —Unlawful apprf)priation. EXECUTOR, —One who settles the estate of a Testator. FORECLOSE, — To cut off the power of redemption under a mortgage. 000 D WILL. — Bonus paid for a business. HYPOTHEC A TE.— To pledge as security. IMPOST. — Duty on goods paid by the iinporter. INDEMNIFY, — To recompense for loss or injury. LETTER OF CREDIT.— A letter authorizing one person to receive money on the credit of another. LIEN,- A legal claim on property to satisfy debt. LIQUIDA TE.— To pay off debts ; settle accounts. MATURITY.— The date when a bill falls due. MORTGAGE, — A written pledge of property for the payment of a debt. PAROL, — Not written, especially not under seal. PROTEST. — A formal declaration, by a Notary Public, that a bill was not ac- cepted when presented, or was not paid when due. POWER OF ATTORNEY.— Authority given to a person to act for another. REBA TE. — Abatement in price ; deduction for prompt payment. 50Z/7i;^VCr.— Ability to pay all debts. STIPEND. — Pay for serv ices ; fixed salary. SURETY, — A bondsman ; security against loss. TARIFF. — A list of duties on imports and exports. USURY. — Illegal interes'; ; formerly any consideration for the use of money. VALID. — Of binding force ; effectual, strong. VOUCHER. — A document that confirms anything, especially the truth of ac- counts ; a receipt. 4. /; ___j^ ( appp:ndix. / PRECIS- WRITING AND risriDEixiii^G-. i 1 .-.■■p Wl.-' ' :>-. ,v:j-T»->;;,rp-f:-«i ii i ill ^^ 1' rf / PRHCIS-WRITING AND INDEXING. INTRODUCTORY. Tho purpose of the following pages is to lay before the reader clearly and concisely tho objects and benefits of Pn'cis-Writing and Indexing, together with the simplest methods of acquiring proficiency therein. Tho first thing a student should do is clearly to distinguish be- tween a Precis and an Index. A Precis is a form of composition briefly expressing the precise import of a portion of discourse. An Index, or Schedule, of correspondence is the arrangement of letters in regular order, specifying their dates, the names of the correspondents, anJ giving a very brief indication of tho substance of each letter. The object of the Memorandum, or Precis, which should be in the form of a narrative, is that any one who had not time to read the original might, by reading the Prceis, be put in possession of the leading features of what passed. In every case where an Index or Precis is made, as groat an abridgement of the given language should be aimed at as the required sense will bear. We shall therefore endeavor to present the chief aspects under which the ordinary forms of composition appear capablo of abridg- ment. CHAP. I. Abridgment of Phrases. A Preposition Phrase is one that is made up of a preposition and its object. Its meaning may often be expressed by an adverb, an adjective or a possessive case. ExAMi^LE I. — Ho did his work in a neat manner. Here the preposition phrase, in n neat manner, has the meaning of the adverb neatly. Hence the given example when abbreviated be- comes — He did his work neatly. fi^ p -..I' I,, 'U 51 i 1 1 IV Kk. II. — At what time and in what place shall I meet you. The phrase at irhat time beiii{? equivalent to the adverb when, and the phrase in uhat place to the adverb irherc, the given example by abridgment becomes — When antl where shall I meet you, Ex. III. — The King of Knglanil ruled in a wise manner. Here the phrase of England is equivalent to the adjective Euijlish, and the phrase in a wise manner may be expressed by the adverb wiaehj. Hence the example may be Avritteu — The English King ruled wisely. Ex. IV, — The Works of Shakespeare are read hy everybody. The possessive form, Shakenjieore's uorhs, may be substituted for the uorks of Shahcsjmire, and the idea of the prepositional phrase />// everijhody may here be conveyed by the adverb unicersalhj. Hence the example will read — Shakespeare's Works arc universally read. Sometimes a verb alone will bo found sufficient to express the meaning of a verb and some accessory expression. Ex, I. — He was the leader of our choir. The meaning of this sentence may often be expressed thus — He led our choir, Ex. II. — The enemy at that moment took flight. Here the phrase at that moment may be replaced by the adverb then, and the expression tookjiifjht hy /led. The example will now read — The enemy then fled, Ex. III. — The cost of the building must not be more than $1,200, The idea contained in the words be more than can be expressed by the verb exceed. Hence the sentence will read — The cost of the building must not exceed $1,200. Ex. IV. — He delayed from time to time until his vacation came to an end. Delayed, when modified by the phrase from time to time, signifies procrastinated, and the phrase came to an end is equivalent to ended. Hence we read — He procrastinated until his vacation ended, EXERCISES (A). 1 , I have not come to any conclusion in the matter, 2, By pursuing such a course as this you will in a very short time be able to determine. 3, The decision of the learned juilgc was of greater importance at that time than it would be in the present age. ^^ *r . 4. Did you see in what way he did it. o. Ill a sliort time after lie came bacli to his home. 0. Not wishing to remain in this pUiee he went over to the other side of the river. 7. We cannot at this time assign any reason for the fact that he is a1)sent. 8. Wc were told that the poet Milton was born in the vicinity of this town. 9. I wns revolving in my mind the best plan to get out of the way of my adversary. CHAP. II. Abridgment of Complex Sentences. A Complex Scnteuco is one which, besides a principal subject and predicate, contains one or more subordinate sentences, which de- pend for their full meaning on the principal one. These Suborditiate sentences are of three kinds — (1) The Noun Sentence, which does the duty of a Noun. (2) The Adjectival Sentence, which does the duty of an Adjective. (3) The Adverbial Sentence, which does the duty of an Adverb. A Complex Sentence will sometimes admit of condensation by fusing, as it were, two sentences mto one. In the following examples the portions italicised are noun clmiscs : Ex. I. — Whether he will recover is uncertain = His recovery la uncertain. Ex. II. — I do not know tvhat the renull haa been = I do not know the result. The words of the adjective chiitses are itahcised in the following examples : Ex. I. — Men who are honest and industrious are nobler than men who are ivealthy = Honest and industrious men are nobler than wealthy men. Ex. II. — They have found the chiM ivhich was lost — They have found the lost child. Ex. III. — They found the place in which he hid himself = They found his hiding-place. In the following examples the ndcerhud clauses arc printed in italics : Ex. I. — I shall remain where I am. The clause xchere 1 am has the force of the adverb here. Hence the example may be written — I shall remain here. Ex. II.— The Pharisees did all their religious works that (hey mii/ht be seen of mvu. .1 'I PS! ''■J ^ The idea conveyed by the clause, that they miijUt he seen of men, may be expressed by the adverb ostentatioxtshj, aud the example will then road — The Pharisees did all their religious works ostentatiously. The meaning of an adverbial clause may sometimes bo expressed by a preposition phrase. Ex. I. — Because he was wealthy, people respected him. Here the adverbial clause, because he was iveahhi/, may be expressed by the phrase ^or/w's wealth, and the example will then read — For his wealth, people respected him. Sometimes when we change the character of a subordinate clause it becomes necessary to change the form of tho clause modified or described, as in the following examples : Ex. I. — I stayed at home because I was ill = Illness kept mo at home. Here, having substituted the noun illness for the adverbial clause because I uasill, it becomes necessary to use the words kept me, instead of I stayed, iti the principal clause. Ex. II. — Where is the author who is more famous ? = What author is more famous ? Here the force of the relative pronoun who, and the interrogative part of the first clause, is expressed by the pronominal adjective what, aud the adjective sentence, uho is more famous, becomes the principal one. EXERCISES (B). 1. What is the reason he did not come back^at the time agreed upon ? 2. He has promised to use his influence in my behalf, which is very kind of him. .3. He has made up his mind to make the attempt, but whether he will suc- ceed is uncertain. 4. The fact that he was guilty has been established, so that it is unnecessary to bring forward any further proof. 5. I was obliged to stop because I had not suffiicient money to enable me to proceed on my journey. 6. Will you inform me to what useful purpose that principle can be applied? 7. A doubt still remained in my mind whether it was possible for him to recover. 8. I am unable to tell you the reason for which he was punished. 9. Mr. Wilson dismissed the man who was working for him. 10. Where is the monarch who dares to invade our land ? «i i. Vll my sed seel use or use sad ;ivo kat, pal Llof 3UC- ;ary to icd? 1 to CHAP. III. AuKIDfiMENT BY THE REMOVAL OF PeRIMIRASES, TAUTOLIMiY, pLEONASM, Verbosity, etc. Periphrasis is a round-about form of expression. Ex. I. — The moon is shedding her light around, = The moon is shining. Ex, ir. — The science which treats of language, and the science which des- cribes the earth and its inhabitants, are Inanches frequently studied, = Grammar and Geography are branches frequently studied. Tautology is a repetition of the same meaning in different words. Ex. I.— They returned back again to the same city from whence they cnnic forth. Here the word return implies to turn buck ; the citij implies the sdiue city, and from and forth are both included in the word whence. Hence the sentence should read — They returned to the city whence they came. Ex. II. — It is clear and obvious that I'eligious worship and adoration should be regarded with pleasure by all men. In this sentence clear and obvious are words of similar meaning ; also the words worship and adoration. Hence the sentence may read — It is clear that religious worship should be regarded with pleasure l)y all men. Pleonasm is the use of superfluous words. AltJiough the words do not, as in Tautology, repeat the sense, they add nothing to it. They simply enforce ihe idea. Ex. I.— I sow it with my own eyes. Here the pleonasm consists in the addition of the expression with niy own eyes. Ex. II. — I know thee who thou art. In this sentence I know thee expresses the whole meaning. Who thou art repeats the idea to impress it more strongly. Verbosity is the use of superfluous words, but, unlike Pleonasm, these words have a meaning. They may, however, be omitted, be- cause the meaning is not important. Another difference is that in a pleonasm the correction may be made by simply omitting the super- fluous words, but in a verbose sentence it will be necessary to alter as well as omit. Ex. I. — A severe and tyrannical exercise of power must become a matter of necessary policy with kings when their subjects arc imbued witlj such principles as justify and authorize rebellion. VIU s .'it The sense of the above may be much better expressed in fewer words, thus — Kings will bu tyrants from policy v^lien subjects arc rebels from principle. Redundancy is another term relating to superfluity in the words and members of a sentence. Pleonasm and Verbosity relate princi- pally to the words in a sentence, but Redundancy relates to the mem- bers as well. ' Ex. — The very first discovery of it strikes the mind with inward joy ami spreads thliijht through all itn /aailtien. In this example the second member of the sentence adds nothin;^ to what was expressed in the first, and therefore may be omitted. EXERCISES (C). 1. He was a man of fine reputation and enjoyed a high degree of popularity. 2. He appears to enjoy the universal esteem of all men. 3. The brilliancy of the sun dazzles our eyes and overpowers them witii light. 4. He led a blameless and irreproachable life. 5. The author of the Waverly Novels was a man of remarkable industry. G. There can be no regularity or order in the life and conduct of a man who docs not give and allot a duo share of time to retirement and reflection. 7. The officer treated his inferiors with great haughtiness and disdain. 8. My banks they are furnished with bees. 9. The magistrate (juestioned the prisoner minutely and examined him at length. 10. His cheerful, happy temj)er, remote from discontent, keeps up a kind of daylight in his mind, excludes every gloomy prospect, and fills it witii a steady and perpetual serenity. CHAP. IV. Removal of Ornament. When the language is figuralive the sense may often be expressed in a condensed form, sacrificing thereby the sentimental force and beauty of the original, but answering the purpose of commercial con- venience. Ex. I. — But yonder comes the powerful King of Day, I'cjoicing in the east. When the above is divested of its ornamental dress tlie plain meaning may be written thus : The sun rises. Ex. II. — Ornamental. — The clouds now drop their gai-nered fullness down. Plain. — It is raining. Ex. in.—Onmtneutal. — With equal pace impartial Fate knocks at the pnlaee anil the cottage gate. Plain. — All meu are alike subject to death. ' IX ' Ex. IV. — He lunl liiinlly loft tlie house when a living iiviilanchc of mounted Cossacks rusiied aciosa the path on which lie hail entered. The assertion that ho lunl hdrdli/ left the house means simply that ho hnd just left it ; a liriiuj (iitihiiiche describes a rushing liordc ; the rushing of mounted Cossacks may bo expressed by saying that they galloped across the path ; and the descriptive clause, on uhirlt he lunl niifietl, may bu exchanged for Ins. The example will then read : Just as hi! left the house a hopdc of Cossacks galloped across his path. EXERCISES (D). 1. The giant trees leaned bagk from the encountering hlast. 2. The meadows are clothed in their robes of green. 3. I have been takhig a survey of your locality, and am actuated hy ardent wishes to have my residence in the midst of scenery so enchanting. 4. His charmed numbers flow on like the free current of a melodious stream whose associations ore with the sunbeams and the shadows, the leafy boutjhs, the song of the forest birds, the dew upon the flowery bank, and all things sweet and genial and delightful. f). The snowdrop foremost of the lovely train breaks her way through the frozen soil in order to ))resent her early compliments to herloid. Dressed in the robe of innocency, she steps forth, fearless of danger, long before the trees have ventured to unfold their leaves. Nor is the violet last in this sliining embassy of the year, which, with all the embellishments that wrmld grace a royal giuden, condescends to line our hedges and grow at the feet of briers. CHAP. V. Omission of the Less Important Ideas. In the preceding chapters we have illustrated the various ways in which the length of phrases and the number of clauses may be dimin- ished. Wo now proceed to that species of abridgment which is char- acterized by the omission of the less important ideas of the passage. This process may be carried to such an extent as will reduce the original to a mere index or brief summary. We intend here to exem- plify what is ordinarily aimed at in an abridgment professing to retain the substance, or more important material, of a passage in a connected and readable form. Ex. — It was cheering to note, however, that among the masses of the people a general increase of knowledge began to manifest itself. 'J'his was partly brought about by the introduction of printing by William Caxton, about the middle of the fifteenth century. Here the principal idea convoyed is that the introduction of the nrt of printing prepared the way for the diffusion of knowledge among the masses. The sentence, it it cheeiiiiij to note, may be considered as iutroductory, and the fact that printing was introduced by Caxton, and iho time of its introduction, may bo regarded as familiar to everybody. Without reference to these, we may abridge the example thus : The (liffusion of knowledge was greatly facilitated by the introduction of printing. Kx. II. — When diversion becomes the business of life its nature is changed. All rest presupposes labor, and it may be observed that there is not a more mist;ra1>le or worthless being than a young person of fortune who has nothing to do but find sofne new way of doing nothing. In making an abstract of this it will not be necessary to state any- thing but the simple fact that — All men must have occupation or be miserable. A Memorandum, or Precis, is often required for passages of much greater length than the examples just given. The following example will afford better]scopo for exercise : Ex. III. — It is generally taken for granted by most young people tiiat diver- sion is the principal object of life, and tliis opinion is often carried to such an excess that pleasure seems to be the great ruling principle which directs all their thoughts, words and actions, and which makes all the serious duties of life heavy and disgusting. This opinion, however, is no less absurd than unhappy, as may be shown by taking the other side of the question, and proving that there is no pleasure and enjoyment of life without labor. The words commonly used to sig- nify diversion are three, viz., relaxation, amusement and recreation, and the pre- cise meaning of these words may lead us to very useful instruction. The idea of relaxation is taken from a bow, which must be unbent when it is not wanted to be used, that its elasticity may be preserved. Amusement literally means an occa- sional forsaking of the Mni^es, or the laying aside of our books when we are weary with study ; and recreation is the refreshing or re-creating of our spirits wlien they are exhausted with labor, that they may be ready in duo time to resume it again. From these considerations it follows that the idle man who has no work can have no play. For how can he be relaxed who is never bent ? How can ho leave the Muses who is never with them ? How can play refresh him who is never exhausted with business ? In making a Prt^cis of 'the above extract we should read the whole of it through carefully, and indicate the important points thus : 1. Most young persons regard diversion as the principal object of life. 2. This view unfits them for the duties of life. 3. That this view is erroneous is proven by the derivation of the words used to signify diversion. 4. The inference is that the man who has no labor can have no diversion. Hence the abstract may be written thus : It is a common error among young people to suppose that the principal ol)ject of life should be diversion, and many become so devoted to the pursuit of pleasure, as to unfit them for the duties of life. The absurdity of this view is shown l)y proving that there can be no pleasure without laljor. The precise meaning of the words used to signify diversion —amusement, relaxation and recreation — is turning away from and pre-supposes labor. Hence, if there bo no laljor there can be no diversion. KXERCLSKH (K). 1. Alfrefl, reduced t<> extremity Ity the DniieH. who were Hproadinj; dcviiH- tation over all Kuylaiid, wuh obliged to relinijuiHli tlic eiiNigns of liis dignity, to disinisa liis servantH, and to seek shelter in the meanest disgviises from the pur- suit and fury of his enemies. 2. Tho study of the aninuil kingdom forms an extensive and interesting de- l)artment of knowledge which is intimately connected with the most common necessities and enjoyments of the human species, 3. While we consiiler riches as the means to lie used at some future time for the attainment of felicity, ardour after tliem secures us from weariness of our- selves, l)ut no sooner do we sit down to enjoy our accpiisitions than wc find them insufKcient to till up the vacuities of life. 4. The fame of his discovery liad resounded throughout the nation, and as the route of Columbiis lay through sonie of the finest and most ixipulous pio- vinces of Spain, his journey appeared like the progress of a sovereign. Wher- ever he passed, the surrounding country poured forth its iidiahitants, who lined the roads anr use hy Dr. Percy) by others of incombustible materials, and also that the edges and exposed surfaces of the upper parts of the ceiling of the House <>f Com- mons shouhl be protected l)y a motal covering; and I am directed by him to reiiuest that you will put yourself into communication with Dr. Percy as to the fittings that will be recjuired in future, and furnish the First Commissioner with an estimate of the cost of the works reeonnnended by you, — I am, &c., 10. M. liarry, Esq. (signed) Alkked Austin, Becretavy. (3) Mr. E. M. Barry to Mr. Alfred Aunliii. 21, Abingdon -street, 29 May, 18Go. Sir, — In accordance with your letter of the 3rd instant, I have to report that I have placed myself in connnunieaticm with Dr. Percy, and obtained infor- nuition from him as to the fittings that will be retjuired for the future in the roof of the House of Commons for the effectual ventilation of the House without risk of fire. The roof is at piesent encumbered by fittings placed there to carry out modes of ventilation long since abandoned, and their removal or niodification will enable Dr. Percy to carry out several important improvements in the method of venti- lation at present in use. The changes and improvements which I recommend, including an alteration of the gas burners under the galleries, which Dr. Percy states are now much complained of, are described in the specification which J enclose herewith for the information of the First Commissioner of Her Majesty's Works, &c., and le stimate the coat of carrying them into effect at £],d4(), and consider that a period of five months will be necessary for their execution. — I am, &c. Alfi-ed Austin, Esq. (signed) Edward M. Barry. (4) Mr. Alfred Austin to Mr, E. M. Barry. Office of Works, &c., 10 August, 1805. Sir, — With reference to your letter of the 29th May last, respecting the fittings required for the future in the roof of the House of Commons, for the effectual ventilation of the House, without risk of tire, 1 am directed by the First Connnissioner of Her Majesty's Works, &c., to request that you will procure an estimate for the work upon which the board may rely, and submit the same to them as soon as {>ossible. — ^I am, &c., E. M. I^rry, E8(j[. (signed) Alfkku AuiiiTiN, Secretary. ' xm (.".) Mr. /•/', ;)/. Ititny In Mr. A/fml Auxliu. 21, Al)iiig(l'>ii-«tic'ot, S.W., 14 Aiij;(iMt, IS«m SiK, til reply t«> your h-tter of the lOth iiist., rofeniiig to tliu work propimid to 1)0 (lonu ill ^'lo roof of tliu House of ('oiiiiiioiiH, and re O h < Z < a. X u ® . •2 e5 .a «•« ago II • ° E bo . ■? s a I V a S a is S "S" 9 o W 00-*^ 2 ""S •^ -td );« «i ^ • « X v C IB **-lS*i o 5 Sir: « gft.t3 §•2^2 .5? aS| .2 C l> 'Sc ^1 - £ S.S ^ o t 8 o S " u .5 2 "^S ife 2 o-t- a 5 •«■« S *^ » 00 y ■» M ^ V gtc « go -t^ « 0} 1 «f5 — — H- ■a *,S a c o OS 2° ° 1 ** K Jo o 00 >■ £^ a 1-2 fn u a e — ' a o o fi 5 .a a If •9 -S ■SB "E -5 s "» o g ^ ft C g t o So •S . « " ^0^C £ ^ 6 ^ THE SIMPLEST, MOST RAPID, AND THOi SOHLICHT'S STANDARD II This form is made chiefly for from 500 to 25,000 Names, PUBLISHED BY THE SCHLICHT &. FIELD CO., h AND THOROUGHLY PRACTICAL INDEX MADE. ^NDARD INDEX—SIDE cuttings form o 25,000 Names, but may be made for a larger number when desired. AiMi f mii* XnuiKfl s^_3^^ ^^^^1P\ T- 'o-a^i ^O- fimnfJtt /try (? ^ -r. ■ , - ' : Ij HnyoM KAUE, TACES. ADOftSa OB KntAlKS. T - ' , ... ' . " Q^^^t-^"^ 9tnt£.a- w& /rfW ^4« •iSU^V^jlirO- '■" Q.y^ "v^'^-V ^Otf '^iTi' (3u^xj>aiT vat C/ui^Jij^. J A. 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X tu T3 H IS" « a S "S " a- .5 O 6t .-S •so C 55 ^ Ss « Se 2 «•« .2 ja.a e a" ^ — o S •ss a « a o ft.S £ o o -w Q a O C o r -' ■glsS'S o **•** *> beo a oS-2 p ft '■ U ^ fit » o *: S ja o © -. » S." i> £3«S 3-- -OK ■ ft rt. ^ d * =■ ft a(,d 5® c - ■2 0-2S B— (n S ►-1 T" ■! 5 2 So Bog:g TO©* —Hi- rtt^ 1: ."^ ■^ - 2S ^i..i% 5 ftSv.fl' HT & FIELD CO., ROCHESTER, N.Y., AND TORONTO, ONT. ' ««b;Mln;;rv !iW» SfflS .■i/ijdfA;':-^-!''l'iJ'jiA:'iV.-/ OT]^N8N V LETTER V im •:• BIIiIi :• FILE AND FILING CABINET. NO. 4, A File. 60 Drawer Shannon Filing Cabinet with Base. Ui CO 1 < 1 o 1 z 1 cfu^fy o z 25 nOLKHT t rXLO 1 mwftrw.K.r, 1 unTLmem ^ ^^^tmrnma firm mtmit Q UI mmBM Mezm CO p QHKn 04nW£LL i^or* Onjlajj. CABINET FILE DRAWER. INDEX. PAOX Accounts Explained 5 II Classified 6 ,1 Illustrated 6-16 II Sales Letter 172-174 Agreements, Written and Verbal 178 Assignments 180 Agencies 189 Averaging Accounts 211, 215 Appendix — Precis Writing and Indexit. I ■< 4 COMPLIMENTARY NOTES. "The Dominion Business College is a n^odel institutior], and l^as been selected by Prof, Bernard Bigsby, M.A., aq Autl^orized Eqglisf] Iqspector of the Anrjericaq Systenr] of Education, as tfie Typical Busiqess College of Caqada." — IF/ttV/. "The wonderful success wfiici] f]as atteqded this institutioq is tf]e best evidence of its worth." — Daili/ .Veics. "The nqost popular and successful Busiqess College Extaqt." — Practical pAliicator. "J[\e Don^iqion Business College, Kingston, is certainly takiqg {\\e lead of all tf^e other Conrjnqercial Scl^ools in Caqada - Free Press. THE CALENDAR, coqtaining all necessary iqformatian as to rates of tuitioq, course of study, etc., will^be nrjailed free to aqy address, 4 i^ijay •^- wood, Tfi»ir)cipcrls.