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 1 2 3 
 
 1 
 
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^ 
 
 oouqLas 
 
 LlbUARy 
 
 Presented by 
 
 pONATZD BY GRACE VUORI, ARTS 
 46 Ar:D ELIZABETH GREEN, ARTS 
 '49 IN MEMORY OF THEIR FATHER 
 CLIFFORD B. MOHR, ARTS '17. 
 APRIL 1980 
 
 Queens University at Kingston 
 
 The EDITH and LORNE PIERCE 
 COLLECTION of CANADI ANA 
 
 ^een's University at Kingston 
 
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 T H E 
 
 HIGH SCHOOL BOOK-KEEPING 
 
 ILLUSTRATIONS OF THE LATEST AND BEST METHODS 
 01- KEEPING ACCOUNTS BY . 
 
 SINGLE AND DOUBLE ENTRY, 
 
 BUSINESS FORMS, CORRESPONDENCE, AND NUMEROUS 
 
 CLASS EXERCISES ; . ? 5 
 
 ALSO 
 
 
 -i\ 
 
 .•"« 
 
 PE^CIS'WEITING AND INDEXING: 
 
 FOR THE USE OF 
 
 HIGH SCHOOLS AND COLLEGIATE INSTITUTES, 
 
 BY 
 
 Maclean, 
 
 L-\ 
 
 ^L/i-^L/ 
 
 Jtttthorweb bg the department of €tmcattx>tt tot (Dntatiff. 
 
 
 -> TORONTO: 
 
 THE COPP. CLARK COMPANY. LIMITED. 9 FRONT STREET WEST. 
 
 1890. 
 
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 VldA^t) 
 
 m 
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 / 
 
■ ■ti n > mm' 
 
 intered according to Act of the Parliament of Canada, in the year "^^ ^^^^""^ ^'jf ' 
 hundred and eighty-seven. by Thk Copp. Clark Compakt. Limited. Toronto. Ontario, 
 in the Office of the MlniBter of Agriculture. 
 
^lAdu- 
 
 
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 II 
 
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 L 
 
 io. 
 
 t^^B 
 
 ^ UlREFACE] 
 
 ^/"^. 
 
 o keep in mind the 
 
 </ 
 
 In constructing this work I have endeavored to keep In min 
 important fact that the training received at school should be a proper 
 preparation for the performance of the duties of life. With this before me, 
 I have made an attempt, whether successful or not, to present a course of 
 instruction in Book-keeping not only thoroughly practical, but also furnish- 
 ing suitable means for mental development. Although the more difficult 
 parts of the subject ifre discussed somewhat fully, care has been taken to 
 give only such explanations as actual experience in the school-room has 
 proved necessary. The pupil is required not merelj to copy and study 
 work done for him, but to do it for himself. In short, the aim has been 
 to train the pupil to record business transactions systematically, not simply 
 to ahwjo him how to do so. 
 
 As Double Entry, contrary to the usual practice, is introduced before 
 Single Entry, a word or two by way of explanation may not be out of 
 place. For a cu.isiderable time I held the opinion that Single Entry, 
 owing to its greater simplicity, should be taught first in order. Notwith- 
 standing the difficulty of getting rid of preconceived notions, I have been 
 forced to the conclusion that such idea is not correct by observing, (1) 
 that D. E. c^'.n be made so simple as to present to the average High 
 School jiupil no difficulty sufficiently great to be objectionable education- 
 ally ; (2) that D. E. affiDrds more scope for mental discipline ; (3) that the 
 pupil who has mastered the principles of D. E. experiences but little trouble 
 with S. E. If the converse of the last-named were tnie it would certainly 
 lose its force, but this is not the case owing to the incompleteness of S. E. 
 as compared with D. E. The arrangement is such, however, that those 
 who wish to take S. E. first may do so without inconvenience. 
 
 The chapters on Prdcis-Writing and Indexing have been added so that 
 the book might cover the commercial course prescribed for High Schools 
 and Collegiate Institutes. The exercises and examples given in connec- 
 tion with these subjects have been obtained from various sources ; but I 
 am chiefly indebted to the Art of PricU-Writingi by Hunter, for hints 
 
 and suggestions. 
 
 THE AUTHOR. 
 
 TUP. Ki/f H6I? 
 
i«Bmi 
 
 i 
 
 i\. 
 
poor- '^ ^ ^ f^f^G. 
 
 BOOK-KEEPING 
 
 CHAPTER I. 
 
 INTRODUCTORY. 
 
 ^' 
 
 That every person, whether actively engaged in business or not, should 
 keep some record of his dealings with others, is conceded by all The 
 teacher or student, as well as the merchant, should keep a set of books, 
 or one book at least in wliich to enter business transactions. As mif^ht be 
 supposed, there are different methods of keeping books. No doubt there aie 
 certain well-defined principles which should always be adhered to, but the 
 i^ application of these must ever depend largely on the nature of the trans- 
 \ '"•^^•,»"8 Recorded. A blacksmith might find one "account book " all that 
 5 would be necessary for his purpose, while a banker would require to use 
 several books. Both parties should have the same object in view, viz • 
 to shew clearly, expeditiously, and accurately the true stkte of their affairs. 
 The pupil must endeavor to take a firm grasp of the principles, for when 
 these are mastered the details of any particular methotl will present but 
 little difficulty. 
 
 By a business transaction we mean the exchange of -values ie 
 that something which has a financial value is given for something else to 
 which an equal financial value is attached. When we receive or pav 
 inoney, get or give for value a note, check or any other valuable coil- 
 sideracion, a business transaction takes place. 
 
 Goods are said to be bought or sold on credit when actual payment is 
 not made for them at the time the transaction takes place. 
 
 Example I.— We sell John Smith on credit 2 bush, wheat at 70c. per 
 bush. * 
 
 As John Smith gives us no value at the time the transaction occurs, we 
 niust hold him respondble for payment ; or, in other words, we must charge 
 the amount to him. In this way we shew by our books that he owes us 
 fl.40. 
 
 ExAMPLK IT.—Webuy of L. Mason on credit 12 lbs. of tea at 60c. per lb. 
 
f 
 
 •Al 
 
 # 
 
 .^.'./.^ 
 
 2 BOOK-KEEPING. 
 
 As WO get value from L. Mason without giving value in return at the 
 tinu', wo must uiako 8uch an entry as will show that we are i idebtetl to 
 iiim to the extent of $7.20. 
 
 By a Cash transaction we mean th»it cash has been received or given for 
 rsonie other thing. 
 
 Example I.— We sell H. Crosby a fanning mill for cash |30. • 
 
 In this case we cannot charge H. Crosby with the amount, as he has 
 givfn cash in payment. But as we have received cash we must make 
 our books .show this fact. 
 il<:x AMPLE TI.— We >)uy of A. Hilker for cash 12 lbs. of sugar at 
 f per lb. ^^ 
 
 As we pay for the sugar, the business relations which existed between A. 
 Hilker and us before the transaction took place ha^'O not been changed, 
 but we must make our books show that we have paid out cash f 1.08. 
 
 ACCOUNTS. 
 
 When we have dealings with a person a very simple method of record- 
 inu^them is to write the name of the person in a plain, large hand, 
 and to write the items below it. Again, when we receive or pay out 
 money, we may write the word "Cash" as our heading and place the 
 different amounts below it. We may also divide the items into two classes 
 Vov extimple, in each cash transaction money is either received or paid 
 out. We may, therefore, place all amounts received ^^ ff^^^l^'''^ 
 all amounts paid out on the other side of the account headed Cash. 
 
 A similar division can be made of the items of all other accounts ; but 
 a clear idea of this can be obtained only by means of examples. 
 
 A number of items collected under a heading is termed an Account. 
 
 Every account has two sides, the one on ,tlie Ze/< being called the 
 Debtor (Dr.) side, and the one to the riyht the Creditor (Cr.) side. 
 
 PERSONAL ACCOUNTS. 
 Lit kept with a person, a firm, or a corporation is called a 
 —.account. 
 n IS customary to place all amounts Tvhich a person owes us on the Dr. 
 ^e of the account which we keep with him, and all amounts which ive 
 Ime him on the Cr. side. 
 
 EXAMPLE. 
 
 Julv 1 ■ 886. Sold James Brown on credit 1 Reaper at $80. July 5. 
 Sold him' two waggons at $45 each on credit. Sept. 13. Received from 
 him 25 bush. Wheat at 70c. per bush. Sept. 20. Received from him 
 
T^ 
 
 'A^ 
 
 BOOK-KEKPINO. | ' 
 
 x. ifiCt qpnt '>4 Sold him on account 1 Buggy at $84. 
 on account cash $30. »«P*-.,t;- "^;'\^",.,^y ,^t 50c. and cash $20. How 
 Kpnt 30. lleceivod from him 2.) bush. Jiai ley ai, u 
 KVhe account stand on the 30th of Heptembe. i 
 
 /Our Arrount\ 
 VAgalimt. II Im./ 
 
 JAMES BROWN. (Si^i^iV'u.) ^''^ 
 
 1S8(J 
 
 July 
 it 
 
 Sep. 
 
 Oci. 
 
 1 Reaper 
 
 ^ Waggons at ^.^7 . . 
 1 Buggy 
 
 80 
 UO 
 84 
 
 xoy^. 
 
 1 Balance from old a/c. 1~4 
 
 ..'.-, Inoih. Wheat atroc. 
 
 Catih 
 
 J'lhmh. Harlf(ititiJOc. 
 
 25r 
 
 " I (7/Wi 
 
 Jialanc' in our /<iiw 
 
 17 
 31) 
 J 
 
 .^ 
 
 50 
 
 u O 
 
 17-'A '' * 
 
 80] 
 
 '41 
 
 
 WV,pn n. dealer wishes to kvmo merdu Imw mi accmml ,(««./» he «M» up 
 the^o,^; trZnL the Dr. »*. au.l also the one ou the Cr. s..le, u,ul 
 finds the difference between these sums. 
 
 Tf h« wishes to close the account he adds the columns and finds the 
 
 It he wishes ro wub difference on the smaller 
 
 difference between them He^^h^^^^^^^ ^.^^^^ ^^^.^^^ ^j^^ „^^,,^^y 
 
 Hide, making the f ^^^ /^^^'^';;, '''V ^j^^ ^^^^^ ^hieh are of course 
 '^'^:'"^r.'':T^^^^^^ rLl imm diately below them 
 acr^ the m^oney columns. The account is then said to be closed. 
 
 In the following exercises the items are to be arranged under the 
 proper headings. 
 
 EXERCISE I. 
 
 October 1. 1886._Sold John Jamieson on credit g^xnU valued at 
 *40 6 John Jamieson paid me on account cash $10. 9 bold John 
 Jamieson 10 bush Barley at 50c. 12. Received from John Jamieson 
 2 bbir Potatoes at $1.50. 15. John Jamieson paid me cash m full of 
 
 account, $ — . 
 
 EXERCISE II. 
 
 'Octobei-i^. 1886.— Wm. Muir owes me on account $25. ^Sold him 
 24 ydt^eed at 70c. 20. Sold him 1 suit of Clothes at $17 ^nd O— 
 at $13 23. He gave me on account, 3^ tons of Coal at $6, and cash $5 
 26. He paid me Ish $10 on account. How much does he still owe me] 
 What appears on the Dr. side ? What on the Cr. ? 
 
 ^ 
 
 'f^ 
 
 nji i ./t" 
 
mm 
 
 irl 
 
 4 DOOK KKKPINO. 
 
 BXBRCISB III. 
 
 Nov. 1, 1886.— Sold L. M»8on 24 l)U«h. Barley at 55c., and 12 buHh. 
 "Wheat at 75c. 3. Sold A. Hilkor 28 bush. Oats at 34c. Received from 
 L. Mason on account, cash $10; 5. Bought of N. P- McKiimOn, 20" oonis 
 W(kk1 at $.1.50.- 6. Received from A. Hilker, 24Jb8. Otei'm at lie. 
 Pai«l N. D. McfTmnon, cash in full of account,.!—. Sold L. Mason, 120 
 bush. Oats at 35c. Received from A. Hilker, cash in full of account, 
 $— . What does the Dr. side of a Personal acct. show 9 What the Cr. . 
 When the Dr. side is the greater, in whose favor is the diflfereuue between 
 the sides ? Why ? What is a Personal account 1 
 
 rN0TK.-The pupil i> required to open In proper form an account with each per«on with whom he 
 doea buaincM on credit.] 
 
 CASH ACCOUNT. 
 
 A Cash Account is kept to show the amount of cash received and 
 cash parted with. The plan adopted is to put all amounts of cash which 
 are taken into the business on the Dr. side, and all amonnta parted wtt?, on 
 the Cr. side of this account. 
 
 EXAMPLE. 
 
 Nov. 1, 1886.— Cash on hand, $10. 4. Paid for a hat, $2. 6. Received 
 week's wages, $6. 8. Paid for a coat, $7. 10. Paid to C. Cameron on 
 account, 50c. 13. Received week's wages, $5. 17. Paid tor a pair ot 
 boots, $4. 20. Received week's wages, $5. 23. Paid for fuel, f I.5U. 
 27. Received week's wages, $5. 30. Bought for cash a vest at ^2.50. 
 Find the amount cf cash on hand. 
 
 Dr. 
 
 (Received.) 
 
 CASH. 
 
 (Parted with.) 
 
 Cr. 
 
 1886 
 Nov 
 
 Dec. 
 
 1 
 
 6 
 
 13 
 
 20 
 
 27 
 
 On hand 
 
 Received week's wages. 
 
 On hand 
 
 IP 
 5 
 5 
 5 
 
 
 30 
 
 1886 
 
 12 
 
 60 
 
 Nov 
 
 4 
 
 
 8 
 
 
 10 
 
 
 17 
 
 
 23 
 
 
 30 
 
 
 (< 
 
 
 
 Paid for a hat 
 
 " " a coat ... 
 
 "i to G. Cameron. 
 
 " for hoots 
 
 " ''fuel 
 
 '♦ " vest 
 
 Balance on hand . . , 
 
 4 
 1 
 
 12 
 
 liO 
 
 50 
 
 50 
 
 50 
 
 ^M 
 
 EXERCISE IV. . 
 
 July 5 1886. Commenced business with cash on hand, $50. Bought 
 
 of A. M^ for cash 100 yards Cotton at 7^., 20 yards Tweed at $1.20 
 10. Sold for cash to L. Mason 25 yds. Cotton at 8c. Paid for Coal Oil 
 $1, and for Stationery 50c. 12. Sold H. Corbett for cash 12^ yds. 
 
 1 
 I 
 
 f 
 
 *\) V 
 
 ^' 
 
Cr. 
 
 6P 
 
 50 
 
 50 
 
 7)0 
 
 ■A- 
 
 
 /-? 
 
 liUOK KKKflNfi. 
 
 TwwhI at |tl.30.^ *i#. Solfl oT,t the reuuiirnler of my giwda for caMh I IH. 
 Find tho aimmiit of coAx on h 1. 
 
 BXBR0I8B V. 
 
 Aug. 2, 188G.— Commenceil busineKS with cftsli on hand, 11,100. 
 Bought of J. IJiuro for cash, 20 bhJH. of Flour nt s^H.oO, ami 200 hush. 
 Wheat ut 90c. 3. Paid fuel, $10. 5. Hold JaH. Hosh for aish, 10 
 hblH. Fl.mr at $0.50. 6. Sohl W. (Jarrow for cash, 50 hush. Wheat 
 at one. 7. Paid for Postages !»1.20. 9. Heceiv^nl from .). Clark, 20 
 coixIh of W(Mxl at i$1.50, f(a- which I paid cash. 
 
 How much is on hand on tho 10th of Aug? What dws tho Dr. side 
 . ^i tho cash account show ? What tho Cr ? Which side must be tho greater 
 wljen there is a diiference between tiio sides'? Explain. 
 
 A Personal Account must bo opened (if not opened already) when we 
 receive value from a person without giving eciual value at the time ; ami 
 nlso when we give value to a person without receiving equal value at thn 
 time. 'J^ „, 
 
 All cash transactions must appear hi the Cash Account in srnnd form. 
 As the Dr. shows all amounts which are taktMi into the business ami 
 the Cr. side all amounts which are paid out, the Dr. side must be the 
 •rreater when there is a difference between tlu^ sides. 
 
 The pupil will observe that the same transaction may affect both the Casli 
 /Account and a Personal Account. For exam])le, if J. Ross pays on account 
 . C>'ish $30, his account must be credited with the amount, because he gives t^j 
 ^P value without receiving, at the time, value in return; and the Cash ^ 
 *'' Account umst be debited for the same, because cash has been received. 
 
 In the next two exercises the pupil will open a Cash Account, and also 
 such Personal Accounts as are required. 
 
 EXERCISE VI. tt*^^ 
 
 '\) % 
 
 I 
 
 
 -^X 
 
 t 
 
 f> 
 
 Oct. 1, 1886. — Commenced business with cash on hand $2,000. J. Taylor 
 owes me on account $350. 4. Bought of A. Gunn on account 250 yds. 
 Tweed at 70c. ; 30 yds. Broadcloth at $2.30 ; 50 yds. Farmer's Satin at 
 45c. ; 125 yds. Flannel at 30c. 5. Sold J. McKay 10 yds. Tweed at 90c.; 
 ')0 yds. Flannel at 40c. Paid for Coal Oil for use of store with cash, 
 ^•2J)0. 6. Received from J. Taylor on account cash $100. Paid cash for 
 Fuel, $20. 12. Paid A. Gunn on ace nnt cash $140. Paid cash for 
 Stationery and Postage, $1.20. 13. Sold H. Murray on account 50 yds. , 
 Tweed at 90c.; 15^ yds. Farmer's Satin at 50c. 15. Paid clerk's salary ^ ^ 
 with cash $20. Paid A. Gunn cash in full of account, $ — . _ 
 
 Find the amount of cash on hand, and show how the Personal Accounts' 
 
 'fc i 
 
 5 
 
 ^c 
 
 7a 
 
 i 
 
 stand on the evening of Oct. 15th. 
 
 I 
 
 r^ 
 
 /.V,fa^ 
 
 .'^.'X.yv 
 
 1 - 
 
 
 
 it 
 
 
 rf^ 
 
 ^ 
 
 Ll''> 
 
 /"/ 
 
 o 
 
6 
 
 liOOK-KEKPING. 
 
 <,\ 
 
 EXEEOISB VII. 
 
 ini?on W 1^^,^— ^^^'^'^^f^^ V' '^"•'^"'^"•' ^''^•'^h ^^^^- ««"Sht of Wm Sym- 
 ington tor cash ffoods va ued at gJlOO 10 ^,.1^1 A i^ i- »" "'• i^ym- 
 124 v»l« fti'lL- ..4- on on 1 V-, ■^•^- ^oW A. llobinson on account 
 
 91 pi p ^u ^'.'"^'^^*^ ""^ ^^' "^^'^^^ ^'^ ^e«'"nt .300 yds Linen\t^(- 
 ,21. Jraid for Stationpfv .Ofe-> 'in 99 q i i at m-i "^ L-mtn at ,>Uc. 
 
 Li-i..n -.f priofxll\, • ^''^'^ ^1- ^l^^"e on account' IGj- yds 
 
 2^ 1 ;^h'd^f^.f A K^r '^ '' ''" ''• ^'"'^ '''' ^^- *^---^-^ ^i<^: 
 
 rxc^ount cl^sh 8Ga "" "" "''"""' ""^ ^^- ^^^^'^ ^^^ ^^^^^^ "" 
 
 «fi^'^-n^'"^f 't.'';^'^ '^'•"^'^ "'"'^^ *^^ following result: Cash on hind 
 .'$G.3J.;,0; A. Robinson owes on account J^-^." •>V \T \ri n. -i -- ' 
 
 amount owing to A. Hilker, $90. ' ' ^^'^"^ '*'''^' '"^^-'^^ 
 
 MERCHANDISE ACCOUNT 
 
 EXAMPLE, 
 
 N. Bow„,aa o„ account 250 ;hCott„^„:;^o'%''HHVf- ^7«'" '"' 
 1 12 ytk. Tweed at Tic - H S.' u ^ ,t r ^^''''^ "' H"lmes for cnsi, 
 
 atiL i3c:lj:;:fi..^j^i^r^;^^-7^/-^ 
 
 J. Baker m.y entire stocic of goods for cash $25^0. Knd X loss 'or Li':'' 
 7M (Cost.) MERCHANDISE. 
 
 (Proceeds. ) 
 
 Cr. 
 
 On hand 
 
 J^ou,jh( of N. Bowman 
 o:i orcount 
 
 Boii'ildfor Cash of L 
 Md.'^oil 
 
 4 
 
 Gain .... 
 
 7fj' 
 
 Sold Jas. Tlolman on 
 
 account ; 
 
 Sold for cash to ij. 
 
 Hohups 
 
 Sold for cash to C. 
 
 McLaren 
 
 Sold for cash to J. 
 
 Baker 
 
 ■The pupil wlio has done the 
 
 8 
 
 U 
 ?.50 
 
 S5G 
 
 40 
 
 40 
 
 e.voroisea previously ^.iver. ^^ilI 
 
 ^«ni?f 'H'^«'|""; '"It It is ..ot neeessiu-Vto opentW^other\hnn'°fh» once (hat this transaction affec-ts 
 result requited. •* "1'*"' '"'y o^^er than the Merchandise Ac"3ount to tind the 
 
BOOK-KEEPING. 
 
 Cr, 
 
 41) 
 
 40 
 
 ' 
 
 EXERCISE VIII. • 
 
 Sept. 1, 1886.— Bought of F. Ross for cash goofls valued at $.300. 
 2. Sold D. Beaton for cash 3 prs. Men's Shoes at .$4.50. Sold A. Gunu 
 on account 2 prs. Slippers at i|1..50; 3 prs. (raiters at $2. 4. Bought of 
 H. King on account -4 00. prs. Men's Calf Stitched Shoes at ^5.20. Sold 
 )ny entire stock of goods for cash $798,50. 
 
 Find the loss or gain. 
 
 EXERCISE 3X. 
 
 Nov. 1, 1886. — Invested in business merchandise v/ortL $560-; cash $350. 
 Sold^Calder for cash 20 yds. Flannel at 27c. ; 300 yds. Sheeting at lOc. 
 Sold A. McCoubrey on account 20 yds. Tweed at $1.20 ; 2 Spo6ls ThrelTTl 
 at 5c. 3. Paid for Fuel, cash $25. 4. Received from A. McCoubrey on 
 account cash $10. Paid cash for Stationery. $2.50. 6. Sold Win. Muir 
 on account 30 yds. Broadcloth at $2 50. cL Bought of H. Steele on 
 account 100 yds. Scotch Tweed at $lS(£ ^^. KeceiA-ed from V.". Muir on 
 account cash $40.50. 10. Received ?rom A. McCoubrey cash in full of 
 account, $ — . 12. Paid H. Steele on account cash $100. Sold Harper tt 
 Co. on account 120 yds. Flannel at 2^ . Bought of H. Steele on account 
 an invoice of goods amounting to $^0. [By " invoice of goods " we mean 
 goods as shown by the invoice or list of them received from the seller.] 
 Sold A. McCoubrey for cash 5 pes. English Print, 35 yds. each, at 2(Ju. 
 1 5. Sold all the goods in store to W. Sloan for cash $800. " 
 
 Find the loss or gain on merchandise, and shew how the Cash Account 
 and the ntcessary Personal Accoui-.ts stand. This exercise will requii-(^ 
 the opening of a Merchandise Account, a Cash Account, and personal 
 accounts with A. McCoubrey, Wm. Muir, H. Steele, and Harper & Co. 
 
 What is the object of the Merchandise Account ? What does the Br. 
 sido show ? What the Cr ? What eutry should be made of goods unsold 
 at the tiw^ of closing ? 
 
 BILLS KEOEIVABLE ACCOUNT. 
 
 When a dealer purchases goods on credit there is an understanding 
 between himself and the seller as to the time of payment, although no 
 written promise is given. It often happens, however, that a person gets a 
 written premise to pay a sum of money at sc ne stated time, for goods 
 which he sells. When this is the case the merchandise is not really sold 
 on credit, as the promise to pay is regarded as actual j^di/^nent for the 
 goc is. 
 
 Suppose that E. Brown buys from the pupil goods valued at $10, and 
 that he gives the pupil in payment the following : 
 
 $10. Clinton, Oct. 8, 1886. 
 
 One month after date I promise to pay ^I!!;::!!"':!!:.:!":!^':!:!^.:':.; Ton 
 
 Dollars, for value received. » 
 
 E. BROWN. 
 
Et 
 
 I* 
 
 8 
 
 B00K-KEEP1N(!, 
 
 As Brown has given the? pupil this Promissory Note which represents 
 vcdtie receivable one month hence, he should not charge the amount of the 
 
 Cmi^f"" • /'''' u- uT'^'"''*;, ^^^ P^P^^ ^^^1 ^P^'^ ^ BiUs Receivable 
 Account, into which he will enter this and all other wHtten obligations 
 which he holds against others. 
 
 AVhen a note signed by another comes into a dealer's possession he should 
 place the amount of it on the Dr. side of the Bills Receivable Account, and 
 when he parts with it he should enter the amount of it on the Cr. side. 
 
 Notes on hand at commencing are entered on the Dr. side. 
 
 EXAMPLE. 
 
 .f 4"^* \^^^-^'T?''^'^ ^- ^«I^'^"g^" 12 bbls. Flour at $5 ; 30 bush. Oats 
 at .«c. Received in payment his note at 30 days for $68.40. 5. Received 
 tiom A. Burwash on account his note at 10 days for $60. 6. Sold W 
 Cole, on his note at 3 months, goods valued |25. 7. Bought goods 
 noZfo;. m "" ^"^•^"^^i^g ^« ^60. Gave in payment A. Burwash's 
 
 Find the value of other's notes on hand. 
 
 Dr. 
 
 /others' Note8\ 
 V Receired. / 
 
 BILLS RECEIVABLE. 
 
 1S86 
 
 Aug 
 
 /others' Notes\ 
 \ Parted With./ 
 
 Cr. 
 
 Received for Flour and 
 Oats from H. Mc 
 
 Dougall 
 
 Received on account 
 
 from A . Burwash . . 
 
 Received for goods 
 
 from W. Cole 
 
 68 
 60 
 
 25 
 
 40 
 
 1886 
 Aug 
 
 153 40 
 
 Oave for goods A 
 Burwash's Note 
 
 Others* Notes on liand. 
 
 60 
 
 93 
 ~153 
 
 40 
 40 
 
 EXERCISE X. 
 Aug. 9, 1886— I have on hand L. Mason's note for $240 10 Sold H 
 
 note f 240. Received on accouub from D. Monroe his no^Wtm 
 14. Received cash for H. Clark's note for $50. 16. Sold AllZZhU 
 
 r $;3f J!^. '^^"'' '' ^''- ^""'^ ^- ^«- - ^- noie 12 yt. Br^'l'th 
 Find the amount of the notes on hand, f^ I 
 
 EXERCISE XI. 
 Aug. 23, 1886. — Commenced business invAsfinr* ^a fr,n^...^ . xr ti*--_x _» 
 note for $300 ; C. BolWs note for $5007 ^:So;,s^-;^ t^^^^Xl 
 
BOOK-KEEPING. 
 
 9 
 
 Cr. 
 
 ^500, for which I gave in payment C. Boltonjg note. 25. Sold F. Crosby 
 on his note a'o 10 days goods valued at $35. 27. Bought gootls from M. 
 3Iann valued at $40 ; gave in payment F. Crosby's note for $35 and cash |Q 
 $5 for balance. 28. Sold R. Martin on his note at one month goods worth <<» 
 S'GO. 30. Received cash for R. Martin's note, $60. Sold H. Calder ou.\ 
 
 his note goods valued at $37. 
 
 Find the value of others' notes on hand. 
 
 n 
 
 ^ 
 
 BILLS PAYABLE ACCOUNT. 
 
 When a dealer gives his written promise in payment for goods that he 
 j^urchases that written promise represents value which is payable at some 
 future time ; therefore, he must not treat such a transaction as if he hud 
 bought the goods orb credit. He has paid for them by giving his note. He 
 will open a Bills Payable Account in which to enter the amounts of 
 all notes which he signs and har-cls over to others. 
 
 When he issues a note he makes an entry of its amount on the Cr. side 
 «.)f the Bills Payable Account; but when he redeems it the amount is 
 entered on the Dr. side. Notes outstanding are entered on the Cr. side. 
 
 EXAMPLE. 
 
 Nov. 1, 1886. — Note outstanding in favor of A. B. Dean, $300. 
 3. Bought goods of H. Hoiman ; gave in payment of the same my note at 
 10 days for $120. 5. Paid cash for my note favor of A., B. Dean, $300. 
 6. Bought on my note at 30 days of H. C. Menzies goods valued at $240. 
 9. Bought of A. McDonald on my note at three months goods valued at 
 $100. 13. Paid ca^h for my note favor H. Hoiman, $120. 
 
 Find the value of my notes outstanding. 
 
 Br. 
 
 I My Notes \ 
 VUedeemed./ 
 
 BILLS PAYABLE. 
 
 /My Notes \ 
 \ Issued. / 
 
 Cr. 
 
 1686 
 Nov 
 
 Fi j Redeemed loith cash my 
 note favor A. B. Dean. 
 Redeemed vnth cash my 
 vote favor H, Hoiman 
 
 13 
 
 Notes Otitsta,nding . . 
 
 
 
 1886 
 
 
 
 
 Nov 
 
 1 
 
 300 
 
 
 << 
 
 3 
 
 180 
 
 
 <( 
 
 6 
 
 
 
 << 
 
 9 
 
 340 
 
 
 i 
 
 
 760 
 
 
 
 
 
 
 
 Outstanding 
 
 Oave for goods to H. 
 
 Hoiman 
 
 Gave for goods to H. 
 
 C. Menzies 
 
 Gave for goods to A. 
 
 McDonald 
 
 300 
 120 
 UO 
 100 
 
 76 
 
 ^/' 
 
 EXERCISE XII. 
 
 n 1 If ■% nnn T> 1 x 1_ _J! n IklT ^ty £ -._l-;_l_ X J.- 
 
 SiOV. lU, lOOD. — i>ougnc gouus ui vj. j.Txt;.svuy, lur wiucii x giivi; my uviv 
 
 to G, Smith on account. 17. Paid cash 
 
 > 
 
 for $100. Gave my note for 
 
10 
 
 BOOK-KEEPING. 
 
 for iny note favor of G AEcKay, $100. 18. Gave my note for m to II. 
 Hilker tor goods 19 Paid cash for my note favor of G. Smith, $no. 
 
 m note ^ ^^ ^ ^^^^"^ ""^ ^^•^^' ^''''^ "^ P'-^^™*^"^ 
 
 Find the amount of my notes outstandin". 
 
 For the next exercise the pupil will open a Bills Receivable Account 
 ana a JtJiIls Payable Account. 
 
 EXERCISE XIII. 
 
 s-.?n ''' o J,^^^--7^^°^!°^'^<^efl business with notes on hand amounting to 
 s.).,0. 2. Bought goods on my note f(.r $320. Sold Peter Bruce, on his 
 note 24 yds Tweed at 75c. 4 Bought of W. McMaster, on my note, lua 
 
 note, $18 6 Sold Colin Campbell, on his note, -1 suit of clothes, $20. 
 / . Bought of A. Hilker, on my note, 200 yds. Cotton at lie, |— . 
 
 (a) Find the value of others' notes on hand. 
 
 (b) Find the value of my notes outstanding. 
 
 For the next exercise the pupil is required to open all the necessary 
 accounts ; that is, all the accounts affected by the transactions given. ■ 
 
 EXERCISE XIV. 
 May 3, 1886.— Invested in business as follows: Cash, .t400: goods in 
 store valued at $20^; .ames Reynar's ju.te for $40. *: Bought of L 
 Mason, on my note, 200 bush. Wheat at 90c. 5. James Reynar paid cash 
 
 8%old W 'r ^?' ^^"^ \'^' 1'^^^^' ^^^ ^-h' 20 bush^Oats at 30c. 
 f ivn^i^f Gordon on accoun^SO bush. Wheat at $1. 10. Paid my note 
 favoc^Iason with cash, $180. W. Gordon paid cash in full of account, 
 •f — . /bold out my .entire sto^k of goods for $340, cash. 
 
 (a) Find the amount of cash on hand. 
 
 (b) Find the loss or gain. 
 
 (c) What was I worth at commencing? 
 
 (d) What was I worth at closing ? 
 
 EXPENSE ACCOUNT. 
 
 s«l7tr?'''^^''i^''^u """i*]"^^'' '^'^ ^" "°^^' ^«°^^' '^''- ^hich are nofAor 
 saje, but Jor use, he should open an Expense Account to receive the 
 amounts of them In this account he may enter also amounts paid for 
 rent, insurance, clerks' salaries, &c. ■ 
 
 onfiiT' '7'^!lf'"g *^^ '"'^ ^^ "''^""^^■^S «^ ^^^ ^"«"^ess are entered 
 on tUe Dr. side of the Expense Account. 
 
 , When articles cAarg-ec? to the Expense Account are so^rf (which happens 
 t,uiv!!!,^, \n„ ^^^j^;^^^^ j^j-u piin;ti(i on tne \ji\ side of it. 
 
 o 
 7 
 I 
 
 J 
 
 o:?. ''- 
 
 m 
 
 
 ai 
 f« 
 ai 
 
 a] 
 
 ti 
 h. 
 si 
 
 G 
 
 a( 
 fc 
 
 4 
 
BOOK-KEEPING. 
 
 11 
 
 EXAMPLE. 
 
 June 1, 1886. — Paid cash for Coal, $10. 2. Bought from H. McLaren, 
 on account, 5 gals. Coal Oil at 30c. 5. Paid cash for Stationery, $2, 
 7. Paid cash for Insurance, $Q. 9. Paid cash for Rent, $10. 10. 
 Bought of C. Dickson, on account, a Set of Books for store, .$5.40. 
 
 Find the total loss on expenses. 
 
 Dr. 
 
 (Cost.) 
 
 EXPENSE. 
 
 (Proceeds.) 
 
 C/.' 
 
 /^ 
 
 
 i/W6' 
 
 
 J nil. 
 
 1 
 
 1 1 
 
 
 (< 
 
 5 
 
 i< 
 
 7 
 
 i< 
 
 9 
 
 it 
 
 1(1 
 
 Coal 
 
 5 gals. Coal Oil at 30c 
 
 Staliomry 
 
 Insurance , 
 
 Rent '. ., 
 
 Books for store 
 
 10 
 
 1 
 
 
 
 /.' 
 
 G 
 
 10 
 
 5 
 
 50 
 
 40 
 
 90 
 
 1886 
 Jtm. 
 
 10 
 
 34 
 
 
 Loss 
 
 34 
 
 34 
 
 90 
 
 - t 
 
 90 
 
 EXERCISE XV. 
 
 Oct. 1, 1886.— Paid for Fuel, $10. 2. Bought from Jas. Keitli, *tn 
 account, a Set of Books for store, $.3.40. Paid for Postage, $1. 4. Paid 
 for Insurance, $5. 6. Bought of H. Bums, on account, 10 gals. Coal Oil 
 at 30c. for use of store. 6. Paid clerk's salary, $20. 
 
 (a) Determine the loss on expenses. 
 
 (b) What does the Dr. side of this account shew 1 
 
 (c) When ire articles bought placed under the heading '^Merchandise," 
 and when ui^der the heading " Expense "1 
 
 I 
 
 I 
 
 THE PROPEIETOR'S ACCOUNT. 
 
 When a dealer invests cash, goods, notes, or any other valuable considera- 
 tion, in a business, he should open ai^ "account, having his own name as its 
 heading, and place all amounts invested and subsequent gains on the Cr. 
 side of it. All debts assumed by the business at commencing vnth- 
 ifrawals and losses, should be placed on the Dr. side. 
 
 EXAMPLE. 
 
 Aug. 
 
 2, 1886. — Commenced business investing as follows : Cash, $1,000; 
 
 Goods on hand. 
 
 Note again?*-- L Mason, $50. I owe H. Henry on 
 
 account $60. 12. Withdrew from en . business cash $40. 
 for the month of August, $60. 
 
 Shew the condition of the Proprietor's Account on Sept. ^ist. 
 
 31. Net gain 
 
 V 
 
 \ 
 
 1 <f 
 
 
 V 
 
 / 
 
 iawwut"' ' 111"! 
 
!!' * 
 
 !li ! 
 
 t- , 
 
 12 
 Dr. 
 
 1886 
 
 /Uebti AMunied. WlthA 
 \ (Inwali and Loaset. ) 
 
 BOOK-KEEPLVQ. 
 (*Pupil'8 Name Here.) 
 
 /Inve»tment\ 
 V and Gains. ) 
 
 Cr. 
 
 60 
 
 ■^yi S If. Henry's a/c. 
 
 I ^^ I Cash withdrawn | aq 
 
 \31 I Present worth ...... j^jo 
 
 1310 
 
 1886 
 
 Aug 
 <( 
 
 << 
 
 2 I Cash invested 
 2 Goods " 
 2 
 31 
 
 L. Mason's note 
 Gains for the month . 
 
 1000 
 400 
 50 
 60 
 
 EXERCISE XVI.-REVIEW V i 
 
 -^«^r:l>erfe^^^^^^ on hand |800.'^2. 
 ■ with cash, «5^ 4rSoM gond. ™S a 1^5 „ 1 i^""' ^°' ^tatipnery 
 ■^«^. Bought of J. DSvis, ont:^;„t ,nn*f *° f- Mclntyre on account 
 'A L. Mason, on mv l^ 36^,w" W . ^i"' ^"^ *' *** «• BougM 
 
 *20. Paid cash for F^l, tiTg ReS' ^^'l^t^sS"*'" valued ai 
 Hwiunt, «-. Wavemv note fo J ,hl "nJ ■ A' ^f^"'y'«« note in full of 
 «-. 10. Sold out „y ^.^^iXS'fo^rh 1/4" ^'"'--'il-^nt, ■ 
 
 c...a„dise, #40* net gX^S.-^^ It 'rrth%8?0 •"' *'''^ ^^"^ °" *^- 
 
 ... rlrf tKtiSs-oJ'^: Srht-^-P" -I '- 'hat it is possible 
 mechanic or grocer in one 'Vk* Ttcoums "' "' """ "^ " '''™-' 
 
 t"p'"of%rj:;' '^rz,::!^ ^i^'t.r - "'-^^> p'-^ •'-•^ - «•« 
 
 iarge several successive pages should! k^t blaS ZT '^ "'^'^ *" *« 
 
 BatSsTrce^aLt nr^^mr^^'^r* c" *^'^"r f ™ >^' ^-'«-«'- 
 
 ■ii^tinctly. To allow 'suSnt spC or tMl 't^; ''S' ^''""i'^p'* ^'-'^d 
 col„n,„s may be placed side by sid^ and to the riglt! See ^ U "'°™^ 
 
 ing^Cld bttttSl^f ""'''^ "-^^ ''^ ■^'"'"y <'-«"^i«hed the'follow. 
 
 .xpIti:rtVor?.';'^;!;td l^L?^'' "^^-^ *^ ^<»- *- 
 
 tion. The amount will be put in the wlb 'f ''''^™P«on of the transac- 
 •w\, , . ^ " '^'"' lett-hand money column 
 
 ^f^^±^^^^^^^^^^^^;x^ f t-s-pti- 
 
 1r 
 
 00 
 
 /V»0)i»r 
 
 ssssumsai^^t- r, ■ 
 
BOOK-KEEPING. 
 
 13 
 
 Cr. 
 
 1000 
 
 400 
 
 50 
 60 
 
 1510 
 
 tatipnery 
 accouttt** 
 Bought, 
 for cash, 
 alued at 
 n full of 
 account, 
 
 1} notes 
 on Mer- 
 
 possible 
 
 farm 
 
 er. 
 
 1 at the 
 y to be 
 
 Iculars. 
 
 stated 
 
 money 
 
 follow- 
 
 ce for 
 an^ac- 
 
 m the 
 ption, 
 
 is stags 
 
 5 
 
 as in the case of a debit. The amount will be extentle<l to the light-hand 
 money column. 
 
 The directions that have been already given will be found sufficient for 
 the remaining exercises of this chapter. 
 
 The pupil who has performed thoughtfully the work t>f the previouB 
 exercises will have observed : 
 
 (1) That every transaction a feds at least ttvo accounts. 
 
 (2) That the debits and credits of each transaction are of equal amonnt. 
 
 (3) That some accounts shew losses or gains, while otfters shev valves in 
 favor of the dealer or against him. 
 
 EXERCISE XVII. 
 
 ^ 
 
 Jan? 3 
 
 c^ 
 
 a 
 
 4. 
 5. 
 7. 
 
 << 
 
 1887.— Commenced business with cash in hand, $500: goo«lH in 
 
 store, $400. 
 Bought goods of D. Gunn on account, $240. 
 Sold goods to B. E. Monroe on his note, $45.50. 
 Paid D, Gunn on account cash $120. 
 " 8. Sold H. Calder goods worth $200. Received in part payment his 
 
 note, $110. 
 "11. Received cash in payment of B. E. MoniWs note, $45.50. 
 '* 13. Gave D. Gunn my note to balance his account, $ — . 
 " 14. Paid cash for Stationery and Postage, $5. 
 
 15. Bought goods of D. Gunn on ray note, $70. Paid cash for adver- 
 tising, $1.20. 
 " 17. Sold Thomas Smith, on account, goods valued at $18.60. Paid 
 
 cash for Fuel, $10. 
 " 18. Received from H. Calder on account cash $30. 
 " 19. Redeemed my note favor of D. Gunn with cash $ — . Paid caKli 
 
 for Repairs, $4. 
 "21. Sold Thomas Smith, on account, goods, $70. 
 " 22. Lent D. Gunn a $10 billM.:S 
 
 " 24. Received from Thomas Smith his note for $80 on account. 
 " 25. D. Gunn rgltirned the money he borrowed, $ — . 
 " 26. Bought a Sfeve for store. Gave in payment my note for $15. 
 " 27. Received cash in full payment of H. Calder's note, $— . Paid 
 
 clerk's salary, $25. 
 " 28. Received from H. Calder, on account, cash $40. 
 " 29. Paid cash for Telegram, 25c. 
 
 "31. Sold out my stock of goods at auction for cash $456.35. Paid 
 ^|he auctioneer "^^ 
 
 ATrt-.-w Tl.^ •>, — ^;i :~ -X— T,_-4.-J i.- J 11 v_ c^~.x.; 1* XI •_ •- - • « -4 
 
 .,,,,,,, — tiio pupii 13 cApcmcvt tm U.U aii iic \:avy lur iiuiiscii ; mis cxurcisu is wurKCU 
 
 out simply to shew the proper form. 
 
 ,,.^^-,^ 
 
 m^- 
 
 -j,ag'- 
 
It' ^ 
 
 J4 
 
 BOOK-KEEPING. 
 
 ?»:».?^^H?!;?:) 3 TOO H 
 
 Dr. 
 
 Jan, I 
 
 4 
 31 
 
 ^^yCash. Amt.investfd 
 Mane, «« 
 Net gain 
 
 1887. 
 J^an. I 
 
 '" ■ IT.- 
 
 ^'0-..<?"P".'s Name Here.) 
 
 By Koumr'Ki. him 
 ■oalance . . . 
 
 on a/c 
 
 
 15 
 
 17 \ 
 
 500 
 
 500 
 
 To Balance hrot. down.. I 
 
 By expmses for Postage, etc.... ^ 
 
 .'! ^^^f^'tising .".'.■■■■ 
 
 << D„; ^«<et 
 
 oalance . . 
 
 leo 
 
 UfJfT 
 
 500 
 
 50 
 
 18 \ 
 Id 
 
 425 
 409 
 
 y\''\ 
 
 To Balance brot. down.. 
 
 „ ^P^f'^e^ for Repairs .. 
 
 ' ' Bah^' ^^^^ ^^^ *^^ ' •" •' • • • • • • 
 
 50 
 SO 
 
 << 
 << 
 
 25 
 27 
 
 To Balance brot. down. 
 ■D.Giinn. Returned 'loan 
 
 <■ /. 
 
 4S9 
 305 
 
 By expense. Salary. ....][[ 1^ 
 
 30 
 SO 
 
 
 
 1 
 10 
 
 425 
 
 120 
 
 4 
 10 
 
 439 
 
 20 
 
 30 
 
 50 
 
 30 
 30 
 
 " rr^ j> ii ''•^l^^e, inalary. . . . 
 
 28] '-nf'i^ H-Calde/snote 
 % ^- ^«Wer on a/c 
 
 28 
 ^9 
 31 
 
 Tn Aff ^ ^""I^^^^, Telegram ... 
 
 no 
 40 
 
 25 
 
 ^y ^^Pe^i^e, pd. Auctioneer 
 rSalance 
 
bOOK-KKEFIX(i 
 
 MERCHANDISE. 
 
 1S87 
 Jan. 
 
 3 
 
 4 
 o 
 8 
 
 15 
 17 
 31 
 SI 
 
 7'0.....(P')P."> Name H,rc.) . ^ ,„^^ ^f ^^orfs ill Hlwe. 
 " U. Gunn. Bot. yoodn on a/c 
 
 Jiy Ji. I'ec. Hold goods /or note 
 
 '• Sundriets. Sold (jootls to H. Calder, 
 
 m T T> *^~^^^' JxU'rtpayt., note $110 
 
 lo .B.Poif. Bot. goods of D. Gunn for note 
 
 By T. Smith. Sold goods on ale 
 
 Cash. Sold my stock of goods 
 Gain 
 
 Dr. 
 
 400 
 
 70 
 
 SO 
 
 790 
 
 4-^ 
 
 45 
 
 \ I 
 
 C^. 
 
 45 
 
 200 
 
 18 
 
 70 
 
 4^6 
 
 790 
 
 15 
 
 60 
 
 60 
 35 
 
 45 
 
 1887 
 Jan. 
 
 o 
 
 8 
 
 11 
 
 BILLS RECEIVABLE. 
 
 To Mdse. Sold goods for note 
 
 ^ By Cash for D Mmiroe's note 
 :.'4 I -A) T. Smith for note on ale . 
 tV Bi/ Cash for H. Cnldo',-' 
 
 By Cash for H. Galder's note 
 Others' notes on liand 
 
 Dr. 
 
 1887 
 Jan. 
 
 13 
 15 
 19 
 26 
 
 BILLS PAYABLE. 
 
 By D. Gunn. Gave note on a/c . 
 " Mdse. Bot. goods for note . 
 
 To Cash, for note favor D. Gunn 
 
 By Expense. Gave note for Stove 
 Our notes outstanding 
 
 Dr. 
 
 120 
 85 
 
 205 
 
 In actual business only one account usually appears 
 
 on a pa^e. 
 
 y 
 
 Cr. 
 
 120 
 70 
 
 205 
 
16 
 
 I 
 
 BOOK-KBEPINQ. 
 
 B. OUNN. 
 
 1S87 
 Jan. 
 
 4 
 
 7 
 IS 
 
 1919 
 
 " las 
 
 ■Sy ^ii»^' Amt. gowla hot 
 To Canh. Amt. paid on a/c 
 " B. Pay. Oam note on 0(0 
 
 1887 
 Jan. 
 
 17 
 21 
 
 24 
 
 To Canh. Lent a $10 hill . . . . 
 By Cash. Returned loan 
 
 THOS. SMITH. 
 
 To Mdse. Sold goods on a/c 
 
 By B. Bee. Bec'd Ma note on a/c.' 
 ■He owes tw 
 
 H. OALDBE. 
 
 
 
 
 18 
 70 
 
 60 
 
 
 y 
 
 
 
 80 
 8 
 
 60 
 
 88 
 
 60 
 
 88 
 
 60 
 
 fi^ 
 
 1887 
 
 
 Jan. 
 
 8 
 
 «< 
 
 18 
 
 (( 
 
 'J8 
 
 To Mdse. Sold goods on ajc 
 By Cash on ale, 
 
 He owes us 
 
 \'^ 
 
 o^> 
 
 1SS7 
 
 an. 
 
 U 
 
 <( 
 
 15 
 
 II 
 
 17 
 
 II 
 
 19 ^ 
 
 II 
 
 26 
 
 II 
 
 27 
 
 <i 
 
 29 
 
 << 
 
 31 
 
 II .( 
 
 To Cash for Stationery and Postage 
 
 " " Advertising 
 " " '< Fuel .. 
 \\ " " Repairs 
 
 B. Pay., for Stove 
 " Cash for Clerk's Salary 
 " " " TeUgmm, 
 '* Auctioneer 
 
 Loss 
 
 -< ^ 
 
 m i u > .r,m'mr„,^^ ,.„,, - 
 
so 
 
 
 8 
 
 60 
 
 S8 
 
 m 
 
 
 ^ 
 
 \ 
 
 liOOK-KKKIMN(J. 
 
 17 
 
 I I 
 
 EXERCISB XVIII,* !l 
 
 « 5* in?,L7^''T^f ^'^i"'^'^^''' ^^^'^ *^'^«h "^ hand 6400. 
 
 6. fought go<K 8 of A. Putteraon on account, $70. 
 
 7. Bought goo<ls of M. Anderson on my noio at one month 
 
 8. Sold gcKKU to Peter Cameron for ca«h, f 50. ' 
 ]k x>' "^ Stationery, $1.60. 
 16. Paid A. Patterson, on account, cash $20. 
 
 9* lold^A f M? ^^ ti^^'^t^T' *^" "^y '^^^^ ^' 10 days, 
 91 P -^ w '^^I' ^^^""^ ^^^"«d ^* ^60 on his note, 
 oi* £" , ^^'^'^^ *'^'' Advertising, $1.50. 
 24. Paid for Repairs, cash $5. 
 
 ' ^tnf!T^\*?^^^^'' ^^.°'T"' ^^0- ^°«J^'«d in part payment his 
 07 -p '^f ^^ *"'" ^^^, I>eposited in bank cash, $300. P^y"*^'*^ ^^^ 
 
 -7. Paid n,y note favor of A. Patterson >vith cash $_. 
 
 31. Sold my entire stock of goods for cash $16.10. 
 
 ne^:i?;:nt!l7"^''' """"*' '^^ *^^ transactions occur, an^ make the 
 
 (b) Find the loss or gain on merchandise. ' ^ 
 
 (c) Find the loss on expenses. 
 
 « 
 
 (C 
 
 « 
 (( 
 (I 
 
 « 
 
 II 
 
 II 
 
 II 
 
 (( 
 
 « 
 
 (( 
 << 
 
 ce 
 
 '/ 
 
 Feb. 
 
 II 
 
 « 
 
 |0 
 
 i ^ 
 
 r^^; Shew how the Net Gain is' found, i 53 
 ("«; Find the proprietor's Net Woith Jan. 31. 
 
 J/^i tt NeTa!!:?""^"^*"'^ ^""^ ^^^^ ^« ^^^-i -i*hout making 
 
 EXERCISE XIX. 
 ^' l^?J---^««^njenced business with cash in safe, $400, and iroods 
 2 Sold T r ^t'-t "* ^' ^^ ^^P«^^^^^ i^ bank'cash. $250 * 
 
 ^les, $40 ' ^"^ ^''^'^*' ^^ ^^^'- ^^^"^ ^* il^.au, $^Ca.sh 
 
 n? ?Qn ^- -"^^cpherson, on his note at 5 days, 140 buslr^ 
 Oats at 30c. Cash sales, $56.40. ' ^ ' ^ 
 
 W W*^ from J-nerSnlith, caA $2o'. B.id cash for Fuel 
 8of $sl Jd D r°T' "" T"""-"' l'^" bush. Whe, t at ' 
 
 <. trave A. C. Carson my note at 2 months fn.- <)iiinA ,• 
 
 -nt of account. ^eceivedft..„"t™ J°^f„!th! "n'ToS; 
 
 * The pupil is expected tn A^^ *h» -.. . 
 
 "' " "'■■ »e1„S.;'».'=2;^ <"-'■' •« "■'^'^ 
 
 
 ^^ 
 
 '?,. 
 
 
 7 
 
 1 
 
 ^ 
 
 
 
 H 
 
 / 
 
18 
 
 |i 11 
 
 BOOK-KEKPWa. 
 
 cash 140. Paid for repairing store with awh, f^5M). C.vsh 
 sales, ^30. 
 
 Feb. 8. Paid A. G. Carson ca.sh in full of account, $5^ Heceived from 
 a o t> •* J ^"®''*' ®'^ 'ic^'"""^ P^sli $35. Cash sales, ^24.00. 
 
 9. Beceiveti cash for H. Macpheraon'a note, .f i2. Pa-M for Adver- 
 tising, cash $5.20. Ca.sh sales, $22. 
 
 " 10- ^^fo^"^*347^go^T'"'^^'' ^^ ""y S""^ to M. L. Jones, on account. 
 
 (tt) Find the loss or gain or merchandise, (^^ ^ ^j , 
 
 (J>) Find the loss on expenses; also the Net Loss^or Net Gain. What 
 IS the Net Worth at closing? 
 
 (c) TVTiat is the amount of cash on hand? Of others' notes on hand? 
 Of our notes outstanding ? 
 
 (d) How much does James Smith owe us on account? M. L Jones 
 owes US how much? 
 
 CHAPTER II. 
 
 I 
 
 Book-keeping is the recording of l)usiness transactions in such a manner 
 as to show the true condition of a dealer's finances. ^"annei 
 
 Sil^ll'^^tl^^V!"'^^''^' i' ?"'^^"^ ^^ccounts, called Double Entry and 
 Single Entry. The mam distinction between them is this :-^ -In a Sin^e 
 En ry Ledger onhj Personal Accounts are kept, while in a Double Srv 
 Ledger accounts are kept with persons and things. ^ 
 
 [As a result of this only one entry of a transaction is niaHp Jn n «!„„!„ r- i r ^ 
 niiule in a Double Entry Ledger, one a debitWdEthe?a credit ]^ '^ ^^'^^'"■' ''''"^ *^°'*'« 
 
 The Fundamental Principle of Double Entry Book-keeoimr is th«t- ih. 
 debits and credits of every transaction are of equal amount ^ 
 
 By the method exemplified in the preceding chapter transactions are 
 entered directly into the book of accounts, called the Ledger. 
 
 THE LEDGER. 
 
 nf\l.T ^^^^^'' '""" *n^ f'^^^' r^ "''^^^^^ ^^"«^"S «"* of the transactionK 
 headings "'''' ^'' ' ' ^'""^""^^ ^""^^^'^ "^^^^ '^^^ respective 
 
 When transactions are of a -Iriple character the Ledger may furnish 
 a sufficiently full record; ]>:... v-'.en a somewhat lengthy description is 
 necessary this book is no long.^. ;,u-tuUe as one of original entry 
 
5.00. Cuhh 
 
 ceivefl from 
 !4.00. 
 for Adver- 
 
 ou account, 
 
 ain. What 
 s on hand? 
 I. L, Jones 
 
 liOOK-KKKl'lNU. 
 
 19 
 
 TYm DAY BOOK. 
 
 The Day Book oontulMs a plain and oni,n„t,henHive HhiUmu,,.^ ,.f ^ u 
 transaotion .onneote.! with th/buHin.s.s, ,,«t !a an Ihort, a t/ Vl^lt 
 ANJH.n n tmuH^tcMun takes pluce it in iulaiediately revo^Vti^t^lk 
 the follrmu.g \mng cimrly shewn : **''orueu m tnia Ikk.Ic, 
 
 (1) Thu dat« of the transaction. 
 
 (2) The XUUne <>l the |>fn«.ti or atxjount. 
 (.'») The tbiag i-eoelve<l or Kiven. 
 
 (i) The prtowi, quanUUes, *c., of tJ.e articles houifht or ■old 
 (5) Thu terma of ruyment. 
 
 THE JOURNAL.. 
 The Journal contains the Debits antl Crcf/ifi, nrWuur f,..«,. i ^ 
 
 I a manner 
 
 Entry and 
 
 n a Single 
 ible Entry 
 
 while two are 
 is that the 
 
 /0-' 
 
 •J 
 
 o 
 
 Q 
 
 o 
 
 DAY BOOK. 
 
 Toronto, September 1, 18S6. 
 
 Sold James Ross,— 
 
 200 Bbls. Flour at $6 « , ..^ 
 
 m " Apples at^I : ; ; *^'f.^, 
 
 • • • UoU 
 
 Received in 2)ayment cash stTTiZi 
 
 Balance on account . . '^ ''Z'^ 
 
 ooO 
 
 ' date — 
 
 -o/ 
 
 i,,k-,o 
 
 ■< 
 
 ctions are 
 
 ansactionH 
 respective 
 
 %y furnish 
 ;ription is 
 
 o 
 
 <4 
 
 JOURNAL. 
 Toronto, September 1, L88>j. 
 
 Cash, Dr 
 
 Jaa. jRoaa " ....[.,.', 
 
 To Merchandise 
 date 
 
 Dr. 
 
 1,000 
 350 
 
 < 
 
 .J 
 o 
 
 Cr. 
 
 1 
 
 1 1,350 
 
 
 i 
 
 i^ 
 
 
 % 
 
 § 
 
 I 
 
 O 
 
II 
 
 lis 
 Hi ! 
 
 20 
 
 BOOK-KEEPING. 
 liEDGEB.* 
 
 ur. 
 
 
 
 
 ■•^ 
 
 Ca, 
 
 3h. 
 
 
 
 
 c 
 
 7r. 
 
 1886 
 
 
 
 
 
 
 
 
 
 
 
 
 Sept. 
 
 1 
 
 ToMdae 
 
 ^ 
 
 1,000 
 
 
 
 
 
 6 
 
 1 
 
 s* 
 
 
 
 
 
 1 
 
 1 ^ 
 
 
 
 
 o 
 
 1 
 
 o 
 
 a 
 
 
 Merchamdise, 
 
 1886 
 
 By Sundries ., 
 
 i.jjf) 
 
 James Ross- 
 
 1886 
 Sept. 
 
 To Mdse 
 
 350 
 
 RULES FOR DETERMINING DEBITS AND CREDITS.t 
 
 STOCK, OR THE PKOPRIETOR'S ACCOUNT. 
 
 Debit for the amount of the pro- 
 prietor's liahilities assumed by the 
 concern at the time of commencing, 
 for all sums withdravm, and for the 
 Net Loss (if any) at the time of 
 closing. 
 
 Credit for the amount of the in- 
 vestment at commencing, for all sums 
 subsequently invested, and for the 
 Xet Gain (if . ny) at the time of 
 closing. 
 
 +v,I^L''''"l^^l^ P^"** l\^^^'^ ^^® ^."*"^^ '" ^^^ I^edjrer are as short ag possible. The former contains 
 the complete history of the transactions ; the latter merely the results. ^"'u.uns 
 
 i\l^J\B^^}lll^]^^^i "^i' ^ntry niade in such a manner as to shew the indebtedness of the person or 
 Uung represented by the Ledger title under which it is placed. 
 
 fhW?',9f^llfl.l^ J".®'^"u '''t e,"*»y,n^ade in such a manner as to shew the amount due to the person or 
 i.ii..„ . ^j.r.oo€nrsr, oy me i^eogef lUle uiiuur which it is placed. 
 
BOOK-KEEPING. 
 
 Cr. 
 
 o" 
 
 
 J 
 
 ^ 
 
 o 
 
 
 ^ 
 
 
 •< 
 
 i 
 
 
 
 ■s 
 
 tj 
 
 o 
 
 o 
 
 "^ 
 
 Q 
 
 DITS.t 
 
 of the zw- 
 br all sums 
 id for the 
 le time of 
 
 rnier contains 
 the person or 
 the person or 
 
 MEECHANDISE ACCOUNT. 
 
 Debit for the vulue of the aoods 
 on hand at the time of commeucin- 
 for the cost of g.,ods snhsequenth, 
 purchmed, and for the vahie of goods 
 returned hy ciisfomers. 
 
 ^ Crwht for the proceeds of sales 
 tor tlie value of goods returned by 
 W.N and for the vahie of goods on. 
 hand at tlie time of closiiif'. 
 
 
 EBAL ESTATE ACCOUNT. 
 
 Oredit for ail amounts against t/^ 
 
 Debit for the vahce of the property 
 re]..-e.sente<l at commencing, for the 
 cost of that afterwards purchased, 
 iiiiu tor all charges. 
 
 ranr^s. storea. dwelling houses. &c.. are usually included under thia heading. 
 
 CASH ACCOUNT. 
 
 property represented at commencin.^ 
 tor proceeds, and for the value of the 
 jiroperty at the time of closin^r 
 
 Credit for all amounts of cash 
 parted with. 
 
 Debit for the amount of cash on 
 houl^ ut the time of commencing, 
 Hiid tor all amounts afterwards re- 
 ceiled. 
 
 PEESONAL ACCOUNTS. 
 »t cotLt^^^CThtlte:: II „ ''If'' '°->l amounts which „:e 
 
 ror our subsequent indebtedness to 
 them, and for all payments which 
 I "iey make to us on account. 
 
 tndebtedness to us, and for all pay- 
 ments which we make to theni oix 
 account. 
 
 Debit for the amow^^i; c/e/7m'fe,/ at 
 i/.^o tune of commencing, and for all 
 oycer sums aeposited from time to 
 
 BANK ACCOUNT. 
 
 Credit for the amounts of checks 
 
 'H.. nmA fr\w% nil ,1 
 
 tvithdrawn. 
 
 an sums otherwise 
 
22 
 
 BOOK-KEEPING. 
 
 BILLS RECEIVABLE ACCOUNT. 
 
 Debit for the amount of others' 
 notes, acceptances, ttc, -which are 
 m hand at the time of commencing, 
 and for the amounts of those after- 
 wards received. 
 
 Credit for the amount?? of others' 
 notes, <tc., disposed of. 
 
 Under this headlnpr we put all written obligations which we hold (ffftttnit othem that ftre not navnhle 
 on demand, such as Promissory Notes, Time Drafts, c;c. payarne 
 
 BILLS PAYABLE ACCOUNT. 
 
 Debit for the m mounts of our 
 notes, <fec., when they are redeemed 
 hy vs. 
 
 Credit foi- the amount n: our 
 notes, <tc., which are in the possession 
 of others at the time of commencing, 
 and for the amounts of those af teT-' 
 wards issued. 
 
 NSe?AS?ptanSi;ir ^"* *"" '^**'" obligations which others hold against us, such as Promissory 
 
 n m 
 
 EXPENSE ACCOUNT. 
 
 Debit for the outlay in running 
 the business. 
 
 ^ Credit for the proceeds of sales 
 of articles formerly charged to this 
 account, and for the value of siich 
 articles on hand at the time of 
 closing. 
 
 SaSs" Light* FueSc*^™ "'"""^ ir^o\^xAms Stationery, Postage. Office Books and Furniture, Itent. 
 
 If the dealer wishes to know the loss on any one of thesR hf> miiBf nr>on •> on..»»j. x , 
 
 debiting for the cost and crediting fo/the proceeds. °P'" *" '^P*™*« ^^""* f^"" ^^ 
 
 INTEREST AND DISCOUNT ACCOUNT. 
 
 Debit for sums pa^d hy us for 
 the use of money, and for sums 
 allowed by us on debts paid to us 
 lefore due. 
 
 Credit for sums paid to us for 
 the use of money, and for sums 
 alloived to us for debts paid by us 
 before due. 
 
 Interest i« an ^lowance made for the use of money. 
 
 Discount is an allowance made for the payment of a debt be/ore it becomes due. 
 
 As Interest paid out and Discount allowed by us affect the business in exactly the same wav it ia nof 
 Di~l'^airowed?ous!'*'"''' "™'""* '''' ^^'''- ^^'^ ^-^'"^ "^^^ ^'^ ^^^'^ of^nS rlJived'a^d 
 At the time of commencinff accrued interest in our favor is debited, and that against us is credited. 
 At the time of dusimj accnied interest in our favor is credited, and that against us is debited. 
 
:t.e of others* 
 
 .t fire not pa.va))le 
 
 mint c: our 
 
 he possession 
 
 3ommencin.y, 
 
 those after- 
 
 ch as Promissnrv 
 
 '■eds of sales 
 rged to this 
 lue of such 
 he time (tf 
 
 Furniture, Rent, 
 I account for it. 
 
 I to US fof 
 1 for sums; 
 paid by us 
 
 ne vay it is not 
 It received aiid 
 
 IS is credited, 
 [iebited. 
 
 t 
 
 ^ 
 
 BOOK-KEEPING. „„ 
 
 GBNBEAL EULES. 
 Aa fte preceding rules are included in the following genenj rules : 
 
 v^uo Without, receivS:"eV"al-v.Xl I'^Sif ^X ^ °"*'"" ^'''"^' 
 J2) The thing received is made Dr.;.»nd^he thing parted with i, 
 
 EXERCISE I. 
 
 ^. ;^aid_K, Miller cash on account, .^lOO! 
 
 3. Beceived from L. McLeod cash $1.50 on account 
 
 4. Sold goods to M. Kay for cash, $40. -c ^^ 
 
 5. Bought goods from R. McKay for cash, $15. r 
 
 8. H. Henry paid hisLercXsTo ^^^ ^^ P-Jn^ent my note. Jj 
 
 9. ^e.«eived from J. Jones $10 on account. , ^ 
 1 ?• l""'^ In ^\ Hespeler $100 on account. V 
 
 12. Bought of B. Miller goods valued Rt t4.f{ n 
 
 note at 30 days. * ^^ ^*^- ^^^^ in payment my 
 
 13. Bought of L. Mason goods valued at ^7n r*o^« • 
 to, the balance on account. ^ ^*^® '"^ payment cash 
 
 14. Sold to James Johnston goods valued at «Q0 !?«««• j • 
 k« note at 10 days for $30 and^ash for balance ' "^ '" ^'^""^^ * 
 
 15. Bought of W. Hill, on my note at 60 days eoods worfT. 
 
 7' wS'o^ l' j"' '" r^""i' ''' bush.^\f:^t 90f 
 18' P.T/? A^' *^?f ^^' Z^'' ''^'^' 20 bush. Wheat at 85c 
 18. Paid for Office Furniture, $25 in cash. ' 
 
 ly. Bought a House and Lot for $900 in cash. 
 .20. Paid for Fuel, cash $5. 
 
 (a) Determine the debits and credits. 
 
 SET I.-RECORD OF TRANSACTIONS 
 Cleston, Sept. 1, 1886.-Commenced business on ^Ih. f q. . • 
 
 " *■ ^"ko^ Silt*"- ^ ""="""*■ '' ''"^''- ^»* "' •« ; la hhk 
 
 " Deposited in Bank cash $50. 
 
 C/N/ 
 
 S^ 
 
 \ 
 
 \\- 
 
msm 
 
 24 
 
 8ei)t. 7 
 
 <i 
 
 « 
 it 
 
 
 V 
 
 ii 
 
 8. 
 
 9. 
 
 10. 
 
 n. 
 
 13. 
 
 in. 
 17. 
 
 IS. 
 
 20. 
 
 21. 
 
 25. 
 
 27. 
 
 28. 
 on 
 
 HOOK-KKKPINO, 
 
 Sold J. rao(., on account, 50 bbls. Flour at S|?0.10; 30 bush. 
 
 VVhoHtHt^l. 
 
 lioccivcd from John Smith in full of account, caih $30, his note 
 
 nt 30 <lu\ .s fur $< 1 0. 
 Paid cash for iWu.k.s for use of Stoi-e, $10. 
 
 liciit li.'Fullor(niia.fr) bill. \ 
 
 Paid II. McDonald for ri'pairing doors, Jkc, cash $]. 
 KSold ]{. McNaughton 20 bbls. Flour at $0.10, on his note at 
 
 oO u.'iys. 
 
 P..u,i,'l.t of P. ]\IcEwen, on my note at 10 days, 10 bbls. Flour 
 at $h. 
 
 llc<'(>i\cd fr(»iM n. Fullertcm, on account, casli .fHO. 
 
 Wold J. Langdoii 100 bbls l^our at $0.10. lieccivcd in pay- 
 
 mont an ordtT on ]i. Fullerton for $100: John Smith's 
 
 acceptani'o for $200 ; c.ish for balance, $ -. 
 lloceived from P. lAiIlorto.i in payment of onlor from J. Lang,- 
 
 don, cash $100. '^ 
 
 Pcceivod J. Pac(« s noto at .^0 days in full of account, $_ 
 Paid f. .r Fuel, cash $ 1 0. ] )'4.osited in Bank, cash $200. 
 Paid cash for my nolo of ].-)ih inst., $— . 
 
 Bought of A. IVI anil, oh my note at 30 days, 30 bush. AVhcat at 90c. 
 Paid tor Coal Oil, cash $1.20. 
 Sdd L. Mason, on his noto at 30 days, 10 bbls. Flour at $0.10; 
 
 1)8 bush. Wheat at 90c. , 
 
 Inventory, Sept. SO. 
 
 12 l)l)l8. Flour at $5.^^0 ^jg q^ 
 
 11.7 bush. Wheat at 90c !..!!!. 1 14 30 
 
 '^****1 |;180 80 
 
IIOOK-KKEPINO. 
 
 25 
 
 ; 30 bush. 
 
 0, Lis liuto 
 
 lis note nt 
 jbls. Hour 
 
 'd in \viy- 
 11 ^Smith's 
 
 1 J. Lung- 
 
 10. 
 
 Bai at 90c. 
 
 tttlClO; 
 
 SPECIMEN DAY BOOK. 
 
 Tho Htudonf, Hl.oul.l wiiio up <ho D,iy ]i<.ok from tho Uvaml <,f Tr-uns- 
 iM-tioiis When lio ii.akaH ;.u (Mifiy Ji„ hIi.miIcI conijwiio it with tho n..- 
 ivspou.hnK (Mitry in tlio Spodino.i ihiy J5.,„k. Jt is important to (,h,so.vo 
 ♦•aretully tlio corn^ct f<.nn. A loose sheet whoiild bo ruled and tho entries 
 nwM (, oil It; Avlu'ii these are corrected they should be put in the ]>lunk 
 
 IxMtK. * 
 
 _^ Clinton, September 1, 1886, 
 
 (Htu.tc,.t'HN«,.,c. ) commenc'H huH'mrsa thU, day on 
 Albert Street iiiveniin(j asJ'oU()irn; — 
 
 Cnnh on hind 
 
 J 1)1) hhlx. Flour . $5 f)0 
 
 lUXt hiinh. Wheat '.'..'.".'....,. Ill) 
 
 John Smith uiimm 
 
 lioin/ht of //. MWHforcuHh,-- 
 100 hbls. Flour 
 
 .7 
 
 r,o() 
 /I'll) 
 
 r^ I II 
 
 40 
 
 Sold W. inilfor va.sh,~ 
 
 GO hush. Wheat ^/ or, 
 
 J hbls. Fhiir t; f^o 
 
 Sold Ji. Fu/lerton on a Jr., — 
 
 ;J'> hush. Wheat 
 
 lo bbln. Flour 
 
 ... 
 
 Deposited in Bank, — 
 Cash 
 
 Sold J, Pace on a/c,~ 
 
 50 hbls. Flour $0 10 
 
 HO bmh. Wheat '".."" j 
 
 S 
 
 Received from John Smith in fall ofaje,— 
 
 Cash 
 
 His note at SO days for 
 
 Q 
 
 10 
 
 00 
 
 Paid cash for Boohs for Store 
 
 Lent B. FuUerton a $5 bill . . 
 
 11 
 
 Paid 11. McDonald for repairing doors, etc., cash. 
 
 son 
 
 SO 
 
 so 
 
 10 
 
 JlO 
 
 r>o 
 
 1,SG0 
 
 coo 
 
 115 
 CO 
 
 SSB 
 
 40 
 
 10 
 5 
 
 1 
 3,488 
 
 a 
 
I! 
 
 I 
 
 !! 
 
 "V. 
 
 26 
 
 \ 
 
 BOOK-KEEPING. 
 
 Clinton, September X3, 1S86. 
 
 „ ,, ^ Brought forivard 
 bold JR. McNaiinhtoti, 
 
 m bbls. Flour 
 
 liacdoed in pat/nicnt, — 
 
 Jlii noUi at iiO days for ^/^^ 
 
 $G JO 
 
 17 
 
 
 liecdvfdfrom Ji. FiillcHon on alc.-S 
 Canh 
 
 
 Sold J. Lanijdon,- 
 JOOhhls.'Fhm 
 Receiml in payment, 
 
 IS 
 
 .^6 10 
 
 An order on li. Fallerton 0ioo 
 
 John Smith's acceptance oqq 
 
 Cash for balance SlO 
 
 20 
 
 deceived from R. Fullerton in payment of Order 
 received from J. Langdon,— ^ 
 
 Cash i 
 
 
 J. Pace 
 
 21 
 
 gave his note at SO days in full of ajc 
 
 Paid for Fuel with cash 
 
 Deposited in Bank,- 
 Cash . . . , 
 
 22 
 
 25 
 
 Paid cash for my note of 16th inst 
 
 27 
 
 ^"'t^tif'-JlT' "^ "^y ««'« «^ so days,. 
 
 SO hush. Wheat 
 
 28 
 
 .$ 90 
 
 Paid for Coal Oil with cash 
 
 - 20 
 
 Sold L. Mason on his note at SO days,— 
 10 bbls. Flour ^ 
 
 98 bush. Wheat 
 
 J6 10 
 90 
 
 61 
 
 88 
 
 Inventory, — 
 
 Flour, 12 bhls «. -. 
 
 Wheat, 127 bush '.'.'.'.'.'.','.":.'.'..% 
 
 Total 
 
 20 
 
 j I 
 
 2,488 
 
 1 '' 
 
 GO 
 
 SO 
 
 610 
 
 100 
 
 33.', 
 10 
 
 200 
 60 
 
 149 
 
 20 
 
 20 
 
 
 66 
 114 
 
 180 
 
 30 
 30 
 
 4,212 40 
 
BOOK-KEEPING. 
 
 The 
 
 SPECIMEN aOURNAL.~SBT I. 
 :>lest form of the Journal 
 
 27 
 
 Jl 
 
 ^'''^-'^^^^-^-^^^^}^zs'^.:^:^^t:^ 
 
 ihen 
 
 column to tho"irw rte^T f Vn '" ,!?'"!'''• *"'™- ^h- .m"™- 
 »8 soon as the Journal „nV ^-^ ^ "'".l^''^ ^'""*- ^'''^ » '» •'» HHnl 
 the page of tL tT 7 " ""'"• . ^'"' ■=»'"""' *" *''« loft i„ f,„' 
 
 po«te4.^ a! '^„^f8'""' ""'• "I"^* ""''"' «"«• "»*" ■*«• the entry " 
 
 of tf.o Day Book. 
 
 Cash 
 John Smith 
 
 Mdse. 
 
 Cash 
 
 A Fullert<m 
 
 Bank 
 
 J. Pace 
 
 Cash 
 Bills Eec, 
 
 Expense 
 
 R. Fulkrton 
 
 \r 
 
 mu.^t be placed in the column to the loft 
 Clinton, September 1, 1886. 
 
*2H 
 
 hi- 
 
 ll 1.1 
 
 BOOK-KEEPING. 
 
 m 
 
 ^ Clinton, September 11, 1886. 
 
 Brouijht fonmrd o 
 
 Expense 
 BUI liec. 
 
 To Cash 
 J3 -^ 
 
 Mthe 
 
 Cash 
 
 T6 2ldse. 
 
 Dr. 
 
 Dr. 
 
 Bills Bee. 
 
 Expense 
 
 Bank 
 
 Milse 
 
 Expense 
 
 Bill^i Bee. 
 
 B. Fullerton Dr. 
 
 Bills Bee. "" '^ 
 
 Cash It "■' • • 
 
 To 'iidse. '.'.'..'. 
 
 Cash j)^ 1 
 
 ToBiFiillerton. 
 
 Dr 
 
 To J. Pace. 
 
 Of) 
 
 Dr. 
 
 To Cash . 
 
 Dr. 
 
 To Cash 
 
 Bills Payable Dr. 
 
 To Cash 
 
 27 
 
 Dr. 
 
 To Bills Payable 
 
 28 
 
 Dr. .. 
 
 To Cash 
 
 29 
 
 Dr. 
 
 To Bills J^ayaUe ....['. 
 17 ^—. '" 
 
 To B. Fullerton ',[ 
 
 IS ^.>i__ 
 
 Q 
 26 
 
 26 
 
 26 
 
 .'6 
 
 2,487 
 
 122 
 
 60 
 
 50 
 
 100 
 200 
 310 
 
 261 100 
 
 26i 
 
 26, 
 
 26 
 
 26\ 
 
 26 
 
 335 
 
 10 
 
 200 
 
 60 
 
 26 
 
 To Mdse. 
 
 26 
 
 27 
 
 140 
 
 20 
 
 20 
 
 4,212 j 40 
 
 2,4S7 
 
 122 . 
 
 60 
 
 50 
 
 610 
 
 100 
 
 336 
 
 10 
 
 200 
 
 60 
 
 27 
 
 140 
 
 20 
 
 20 
 
 '■£i_ 40 I 4,212 \ 40 
 
 i! I 
 
 
BOOK-KEEPING. 
 
 20 
 
au 
 
 II 
 
 iiOOK KKEFIXW. 
 
 tHMfs the %ure 3 will }>o us,.,| 'n •' * ^** transtVircJ f«,r tl.o «J 
 
 SPECIMEN LEDGER. SET T 
 
 
 f r*'-|' P^^-'n-e. .... L,,„„ 
 
 (Reielved.) 
 
 "Capital" would I,p ,!.,-.' Proprietor" or 
 ^^•co.mt must Xw th'e ir"i**y^- ^« 'h ' 
 _Los.s has liecti fm.,.," '"" ^^*' Gi^m or Net 
 
 7,v,sy; 
 
 " ^Vr^w ..■.■; 
 
 '' Johi Smitii ' 
 " Jf. Fnlkrton 
 
 '' Mdse 
 
 " Ji. Fullertuti . 
 
 , /|-rV«oiVjr f'' o^ "- Cash 
 ifSVr?ateltXl?^'"«- ^^^^^^e^- which 
 
 I^ses from this Ledlpr • ** ^K ^'''"s and i 
 
 By Md.^e 
 
 '' i?a«/^ ;.;;; 
 
 Expense 
 
 Jf- FullertoH 
 
 Expense . . 
 (< 
 
 Bills Payable . 
 
 I , Expense \\ , i , 
 
 Remarks. —The stiidcnf V " -^ '■^^ 
 
 ' the meaning of the ^"'* endeavor to gra«p 
 
 Having done this 1, ^™?, ^^^ " No 4 
 
 difficufty i^ dis y ?hr„e ?H*^« but little 
 
 classes of accounts frnm.^^ ^^^ ^^^ jrreat 
 
 are those classe" ? '°'" ''"« »«other. ^hat 
 
Dt, 
 
 (CMt.) 
 
 lS8i: 
 
 
 
 Si'pt. 
 
 J 
 
 To Stock . . 
 
 1 i 
 
 t 
 
 •• CtlMh . . . 
 
 << 
 
 ir> 
 
 '• BillH Pom 
 
 i( 
 
 „'7 
 
 <i •< 
 
 liOOK-KKK»MN(J. 
 
 Merohandiae. 
 
 ( I'rwccitii.) 
 
 S.'ll 
 
 Olio 
 GO 
 
 1. What does the Wist entry on tlie Dr. Hide of 
 
 this ncct. show? 
 
 2. What clous the Dr. total represent? 
 a What the Cr.? 
 
 4, Whun the Mdse. is all w.|<l. what must the 
 ^'inererice l)et\veen the sideo show ? 
 
 /.s'.sy; 
 
 Srpt. 
 
 -/ 
 
 7 
 
 /,/ 
 
 IS 
 
 ."J 
 
 liij Canh 
 
 " Ji. Fiilln-loi^. 
 " J. Pan' . M. 
 " BUIh lli'i'.^. 
 
 " Sundriett 
 
 " Bill, Pec 
 
 
 
 31 
 
 0" 
 
 li Cr, 
 
 
 7.J 
 
 
 
 Jir, 
 
 
 
 .tlo 
 
 ■ 
 
 
 lit 
 
 
 
 fitO 
 
 
 
 U'j 
 
 :io 
 
 1 
 
 
 
 IlKMAiiKM. Uv the Inventory the ^omls remain. 
 
 n\\l unsold ure worth ijJlHO.aO. When these 
 
 Koods were houKht the.^ost of them was .nter- 
 
 "" ,V'" '>«•• «''»'-• of this uwount, hut as thev 
 
 are still on hand and therefore represent value 
 
 h s account must he oreflited with sueh vail ,'■ 
 
 lefore t is in a position to show whether the 
 
 Itiiajer has gained .,r lost on Merehandise 
 
 lss<; 
 
 
 S>'pt. 
 
 s 
 
 4 ( 
 
 1.1 
 
 t t 
 
 IS 
 
 i$ 
 
 iil 
 
 << 
 
 •'0 
 
 V Uecclved 
 
 tcM\ 
 
 To John Smith 
 " Mdse .... 
 
 " J. Pact.'.'. 
 
 " Mdw. .... 
 
 Bills Receivable, 
 
 /Othci'H NdtcHN 
 VPurteil With. ) 
 
 10 
 12.i 
 200 
 3.J.1 
 14'J 
 
 m 
 
 What does the Dr. footing shew ? 
 Why is there no entry on the Cr. side ? 
 How many notes are now on hand ? 
 What entry in this acct. when a note is col- 
 lected ? 
 
 Whether would the difference between the 
 sides of this account be put intoaXteme t 
 
 / My Notes \ 
 VKcileciiied. / 
 
 ISS6 
 S,pt. 
 
 ■:i5 To Cash 
 
 Bills Payable. 
 
 60 
 
 60 
 
 1. Why was this acct. closed on Sept 25th? 
 t'. Why re-opened on the 27th? 
 3. When is an entry made on the Dr. 
 When on the Cr ? 
 
 side? 
 
 1SS6 
 Sept. 
 
 Sept. 
 
 /-' By Mdise 
 By Mdse 
 
 /My No;es\ 
 \ iHHued. / 
 
 60 
 
 60 
 
 27 
 
 
^^ 
 
 Dr. 
 
 I Amotiiit \ 
 VUrpoiKeil./ 
 
 UOOK-KEKPINO. 
 
 Bank- 
 
 1886 
 Sept, 
 
 To Cash 
 
 /Amount \ 
 < Withdrawn.^ 
 
 (','. 
 
 60 
 SOO 
 
 1. WJmt .loes the Dr. lido ihew V " 
 
 2. W hut th» Cr. ? 
 ». Ilow mwh iM (lepoflltcd ? 
 *^WIu^^h^^H mk nhow a Iteiource or a Llabil 
 
 with money .leposlte.!? J' "<eir nti.in 
 
 / My Arrniint \ 
 \AKiilniit Illrii7 
 
 John Smith. 
 
 /HIi Accoimtx 
 \Air»limtMe. / 
 
 2 Wh^f I *Wf account closed on SeptrithT 
 2. What <loe8 the Dr. side of cverv Pe«nnni a„ 
 count shew ? ^ emonal Ac 
 
 (My Account \ 
 A){«ln(it Hlni J 
 
 ■lit/ SuudricH 
 3. Explain the entry made on Sept. iX 
 
 H. Fiillerton. 
 
 /Hl» Aecoiint\ 
 V Against Me. / 
 
 1886 
 
 Sept. 4 To Mdse 
 10 " Cash 
 is] " Milm , ^,n, 
 
 115 
 
 5 
 
 loo 
 
 / My Apconnt \ 
 VAfirsiinst Him./ 
 
 J. Pace. 
 
 issc 
 
 Sept. 
 
 /His Accotua\ 
 \ Afralnst Me.^ 
 
 To Mdm 
 
 335 
 
 V ^.^l*''"*'" *^he closing entry. 
 
 ■7 wi!"" '' 'S!'e«l»o"al Account debited? 
 ■'• When credited ? 
 
 ,?.'?J 
 
 (outlay.) 
 
 isso 
 
 Sept. 
 
 21 
 
 
 ByBUlaliec. 
 
 I 335 
 
 335 
 
 ^' ^^.^ilT^'^^l^ *" *''l*^ *^'8 account IKt^THSSid; 
 ^^J^n^n^testing the equilibrium of the 
 
 Expense. 
 
 (Proceeds.) 
 
 1. JJTiat kmd of outlay comes undirthisheadlnf? 
 
 Here the debit side amounts to «22.20 wKer 
 
 would th.8 be entered in a Statement of Gains 
 
 _u£ilSm '''''' I^-ourcesand Liabu! 
 
 ^" ^^reate^r?^°' ^^'^ account is likely to be the 
 
 4. How does this account affect the Stock Ac 
 count t 
 
 t 
 
<'l\ 
 
 40 
 
 40 
 
 %cccC yj^^^^^^^^^^^ 
 
 MOOK KKKIMNU. 
 
 ;;;i 
 
 TRIAL BALANCE. ' ' 
 
 other woni., the i.-dgJ' ;;;;:;:: :.x^n^"l;^^'l^^"T^ •"•- - 
 
 onoermr at least has crept it. an.l it . / ?*"'' '' ""* ^*'" ^'"^e 
 
 r>o.lKer. Ho will fin. It! ;T, .,'^;/ A" "'"r"^'";^'/'' ^''- 'i'-^ H.vt. in the 
 to he era.s,.l afterward . w ♦ ' , "^?i Tl''^ % '" '"""''' -'^ '^ '"^ 
 
 •>ofore. AH the open acrts i, L '? ?' '"'" '""^ ^'"^^'' ^^ '*« 
 
 '"'^•>n«r This heiLg < lo u ll . t will T" '" '" "/"'"^ ^'^ '^ «'"»''"• 
 
 ^••"•ni given Inflow. Tf t ^ a o.nt! of ! n "''"'".T^ '^"^ -^'"'^^'^ ''X ^•''^ 
 ^^an.o, the Ledger is of o Is V /> '^ T} ^'- ^"'""'"^ '^'•*' H'*' 
 
 of the closed ;Lts ^ : : H ;, ^J l";:^, ^^7/^ ''•%' to tl,ese the totals 
 
 <--espond to the totals of K^k ^ritl'naP ^'^ "^"'^^ ^'^•'"^•' 
 ^.^^ Wh.a the Trial lialunce i. «ati«^ctory, it is ussu.ed that the wodc is 
 
 Trial Balance.— Set 1. 
 
 AWOIJNTH. 
 
 Stock 
 
 Cash 
 
 Mihe 
 
 liilU liec. .'" 
 Bilh Pay..:., 
 
 Bank 
 
 B. FuUerton '. '. 
 JExpenne 
 
 DH. 
 
 J,407 
 
 250 
 ■ .^^0 
 
 Proof of Equilibrium . . 
 Amount of Clomi Acct^. 
 
 :J0 
 
 20 
 
 Total 
 
 ^,777 1 40 
 Jl35 
 
 4,JU \ 40 I 4,2U 40 
 
 i'^^z\t^;::^t7' rKeThod^'^^T -r^ "-' ^^^ ^^-^ 
 
 Book, which is r'uled so as to hive a seHf .0 '" ^ ^"^ " ^^^^ ^^^^^ 
 year '" ''''^ ^ -^ set of columns for each month of the 
 
 J I>ETECTINa ERRORS. 
 
 " ' ^^y piiiuLicai value. 
 
 ^ 
 
34 
 
 BOOK-KEEPING. 
 
 
 The foliowing directions may prove helpful : 
 added ^^^^^ ^"^'^ *^^* *^^ columns of the Trial Balance are properly 
 (2.) Test the footings of the accounts in the Ledger. 
 
 (3.) Find out whether the footings are transferred correctly to the 
 balance Sheet or not. "^ ^ 
 
 (1.) Add the columns of the Journal to see if it balances. 
 
 (5 ) Examine each Journal entry by icself, and also the posting of it 
 checking -I both the Journal and the Ledger. Place the check mark (i/) 
 opposite each amount. '^ \V / 
 
 (6.) Look through the Ledger for unchecked entries, and when one is 
 tound search for the cause of its appearance. 
 
 In most cases it will not be necessary to resort to all these: but until 
 the error is found the foregoing should be applied in the order in which 
 they are given. 
 
 COEREOTING- ERRORS. 
 
 Day Book. No erasing is allowable in a book of original entry If the 
 amount is wrong rule a light red line through it, and then enter the 
 correct amount over that which has been cancelled. But if the entry is 
 altogether astray, and if it has gone no further than the Day Book, mark 
 it void corrected page-," and make a new entry on the page mentioned 
 there referring to the one on which it first appeared. It may be necessary 
 to make explanatory entries. These will be discussed hereafter. What 
 ever the correction made, it must not in any way render illegible the 
 original entry. ' ^ ^ o 
 
 Journal. When the Journal is not the book into which the transactions 
 are entered as they occur, an occasional erasure of a word or figure does 
 rxot seem very objectionable ; but, if an entry is altogether wrong it 
 should be marked "void," the proper references being given Cross 
 entries are sometimes employed to correct errors in the Journal. 
 
 Ledger. If the wrong amount is given, correct it; but if the entry is 
 made to the wrong account make ciphers of the figures expressing the 
 amount and post correctly. When two accounts having the same heading 
 are opened, as is almost sure to be the case if the indexing is not properly 
 attended to, close one of them into the other and give the proper reference 
 It the same amount should be twice entered, the best way of correcting it 
 IS to make in the second entry ciphers of the figures in the money column 
 
 ^*W^- 
 
properly 
 
 ly to the 
 
 Ing of it, 
 aark (|/) 
 
 sn one is 
 
 but until 
 in which 
 
 . If the 
 nter the 
 entry is 
 )k, mark 
 sntioned, 
 lecessary 
 What- 
 ^ible the 
 
 isactions 
 
 ire does 
 
 Tong, it 
 
 Cross 
 
 entry is 
 sing the 
 heading 
 properly 
 sference. 
 acting it 
 column. 
 
 BOOK-KEEPINC. 
 
 35 
 
 PKH^ks:'''''^"''' ^'^^ '"'^' ^"^ *^' ^^^^^^^'^S statements i.om his'' own 
 /. Statement of Losses and Gains.-Set I. 
 
 ACCOUNTS. 
 
 ^ferchandiiie . 
 
 Expense . 
 
 Cr.— Proceeds 01,403 20 
 
 Unsold 180 30 ■ ju 
 
 n. n , $1,583 id'' 
 
 Dr.— Cost 1,407 'CU 
 
 Gain 
 
 Dr.— Outlay^ Loss .. 
 
 UQcrmce or JVef 'iaii'i' 
 
 LOSSES. 
 
 GAINS. 
 
 22 
 154 
 
 176 
 
 20 
 50 
 
 17 V, 
 
 170 
 
 ')9 
 
 By Resources or Assets we mean all values either in our possession nr 
 owmg to us by others, which are applicable to the payment of d phi i 
 Liabilities we mean all values which we owe to others ^ 
 
 11- Statement of Resources and Liabilities,- Set L 
 
 ACCOUNTS. 
 
 C(uh . 
 
 Bills Ike 
 
 Bills Payable. 
 
 Bank 
 
 /?.. Fullerton . . 
 
 Dr.-Amount rec\l ^i^062 00 
 
 ^r. paid Ota S37 20 
 
 Mtrchandiae . 
 
 Proof. 
 
 Bal. on hand 
 
 Dr. —Others' notes rec'd. 
 
 Or.— My notes issued .., 
 
 Dr.— Amount deposited ...... 
 
 ^^'~^V (^<:count against him . '. . . $2i^o ' 00 
 tr.—Hts account against me 150 00 
 
 RESOURCES. 
 
 Bal. due me .... , 
 Amount unsold, valued at 
 
 JAf'-raur vr Prevail y,^t' IVurt'h 
 
 Net Investment . . ..$1,360 00 
 ^«»» 15A .^n 
 
 PresmUlet Worth '" #/^j^^ < 
 
 SO 
 
 224 
 816 
 
 250 
 
 70 
 180 
 
 SO 
 20 
 
 1,541 
 
 LiABiLrrass. 
 
 /•^■y 
 
 30 
 
 1.514 
 1,541 
 
 so 
 30 
 
36 
 
 BOOK-KEEPING. 
 
 THE TWO CLASSES OF ACCOUNTS- 
 
 The pupil, who has endeavored faithfully to answer the (juestions given 
 in connection with the accounts in the Ledger of Set I, must ha^e seen 
 that two sets of results can be obtained from it. The Dr. total of the 
 Cash Account is $1,062, which means simply that that amount of Cash 
 was received during the term of business. The Cr. side shows that $8,37.20 
 was pc 1 1 out in the time mentioned. The difference between the amount 
 received and the amount paid out obviously represents the cash on hand, 
 which, in this particular case, is $224.80. Is this a Resource or, in other 
 words, is it something owned by the dealer, to which a financial value is 
 attached? A moment's reflection will make clear that when a difi'erence 
 exists, the Dr. side of the Cash Acct. must be the gretiter, consequently, 
 when it does not close itself, it must shew, what in business language^ is 
 termed, an Asset or A'esource. 
 
 Again, consider R. FuUerton's Acct. The Dr. total is $220, that is, 
 our account against him amounts to that sum. But his acct. against us 
 amounts to $150, therefore there is a balance of $70 in our favor. From 
 a financial point of view this is looked upon as property which belongs to 
 us, hence it is an Asset or Resource. If the Cr. side had been the grentrr 
 the balance would have been in Ms favor and for that reason would have 
 been to us a Liability. Hence a Personal Acct. shews either a Uesomre 
 or a Liability. 
 
 Take now the Mdse. Acct. The Dr. side represents the cost of the 
 goods, and the Cr. side the proceeds. If the property is all sold the 
 difference between them must evidently shew the gain or loss. If the Dr. 
 side is the greater the difference is a loss, but if the Cr. is the greater the 
 difference is a gain. If a part of the goods remains unsold, the account 
 must be credited with its value. '"■ After this is done the difference be- 
 tween the sides will be the gain oc loss on the merchandise handled. The 
 property unsold should manifestly be considered a Resource. We come to 
 the conclusion then that when the Mdse. Acct. does not close itself it 
 exhibits a Gain or a Loss. 
 
 If this is true of the Mdse. Acct. it holds good for the very samt? 
 reasons in the case of all Property Accts. 
 
 The Expense Vcct. evidently shews a Loss; but it is unnecessary to 
 multiply examples, as the foregoing are quite sufficient to establish the 
 ^fact that accounts tnay be divided into two classes, viz.: 
 
 (1) RESOURCE AND LIABILITY ACCOUNTS. 
 
 (2) LOSS AND GAIN ACCOUNTS. 
 
 * Suppose that a dealer has 1 ought 500 bush, of wheat at |il, and that he lias sold 200 bush, at 
 81.10. It is obvious that he has trained inc. i)cr bush, on the amount sold, or )?20 in all. Now on the 
 Dr. side of the Mdse. Acct. there will appear i?r)00, while on the Cr. there will he only >--J.-ZO ; therefore, 
 to make the account shew the t?ain, (he value of the 300 bush, unsold must be i>laced on the Cr. side. 
 
BOOK-KEEPING. 
 
 CLASSIFICATION OF THiS ACCOUNTS OF SET I. 
 
 37 
 
 Resource and Liability Accounts 
 
 Cash 
 Bank 
 
 Bills Receivable 
 Bills Payable 
 John Smith 
 R. Fulkrton 
 J. Page 
 I {<tock) 
 
 Loss and Gain Accounts... > Merchomlise 
 
 ^ Jilrs"L^'^,'nt'rl'\'' '^' okssification is bused „u trrelation of the 
 m the tZTt , 1 rT^^ PT*^°^^ °^ *^« proprietor For that rea- 
 son the btock Acct., which shows the proprietor's standim' absolutely not 
 
 httTk^n wZLlt'^^ '^ regarded asUnging to eittrdls % I 
 iieie taken with the Kesource and Liabi irv^ Accts because it pln^fl« in +K^ 
 same manner as the others of that class. ' ' ""'^^ '"^ *^^ 
 
 CLOSING THE LEDGER 
 
 of I'vXro^Lrgrro^^^^^^^^^^^ \ ^^-^X -^« - -tin.ate 
 
 Ws and gains. Th^e obj^t ^t^ ^ ^^:^^^^ 
 
 The accounts shewing resources and liabilities may also be closed when 
 It IS desirable to do so, and the balances may be brouVt down ^Tn 
 transferred to an account which may be openeclTn the tT^ TZ?'' 
 purpose of receiving them. ^ *^^ ^^'^^^^ ^or the 
 
 GENERAL DIRECTIONS FOR CLOSING 
 
 off'i'iriLXSsts^ritr'''' ^'>""-'^™» °* *i- ^""ger by taking 
 (2.) Open a Loss and Gain Account, if not already opened into whi.l. 
 
 fiotraTi-r ""* """ ^'^"-^ "^ ">" '"ff— be^s^e: riS 
 
 (3.) Open a Balance Account into which to closp tb*. r.«rv,o- • 
 m the Mger. Tl>is account will receive all theT„tentorier^'^ """""*' 
 
 (4.) If an account h^s an Inventory rpnrp«^nf;«« « t>^ ... 
 
 amount on the Cr. side of the accouS hf ^fiSk^.f^.^lTTJ^^^^^^^^^ 
 transferring It at once to the Dr. side of the Balance Account Z?Tf^' 
 Inventory should represent a Liability its imnuJZ^?\ . ^^ *^® 
 ink on the Dr. side 'of the account t^wircrfbergs'^. ?^1^^^ 
 fory," and then be transferred to the Cr sidp nf fl^% / f' ^'*''^'*" 
 
 :i'\1z°' '"'■ j.-r-'-ng t;re?,?veT:;',*iiv^td!±°T^ 
 
 ance Aeooun. as - ,o uv '' li,j Mdse.;- ^' To" o. " Jiy .ll~eal'£,a;;}Z:; 
 
r 
 
 38 
 
 BOOK-KEEPING. 
 
 and the entry will be in black ink. This being done in the case of .-.ll 
 dosh^"" '^ Inventories, the Ledger is in a proper condition for 
 
 (5.) Omitting the Stock Account, examine the next in order, so ..s to 
 determine whether it shews a resource, a liabilit^j, a loss or a gain, by the 
 difference between its sides. If a resource or a liability, is shewn enter 
 the diiterence on the smaller side in red i.ik " To " or "7% Balance " as the 
 case may be, carrying the amount at once to the opposite side of 'the Bn] 
 ance Account, and using for explanation the heading of the account iust 
 closed. If a loss or gain is shewn enter the amount in red ink on' the 
 smaller side -7o' or "% Loss and Gain," as the case may be, and trans- 
 fer to the opposite side of Loss and Gain Account, using for explanation 
 the heading of the account just closed, as " % " or " To Mdse.," '' By " or 
 loLxpense. Proceed as described until all the accounts in the Ledc^er 
 are closed, except Stock, Loss and Gain, and Balance. 
 
 (6.) Take a Second Trial Balance to see if the three accounts now (men 
 are in equilibrium. ' 
 
 (7) Close Loss and Gain into Stock by making in red ink, on the 
 smaller side, the entry " To " or " By Stock." Carry the Net Gain or Loss 
 thus found in the Stock Account and make the entry in black ink or the 
 Cr. side, if It IS a gain, but on t^ie Dr. side if a loss. In a partnership 
 business the net gam or loss will be divided according to the terms of con- 
 tract, and entered into the partners' accounts as into Stock Account. 
 
 to dole^tdf^*''''^ ^'^'" *^^ P^^^^ers' accounts) into Balaii..c, which ought 
 
 
 
ought 
 
 Dr. 
 
 BOOK-KEEPING. 
 
 SPECIMEN LEDGER CLOSED. 
 Stoch. 
 
 1886 
 
 fiept. ,iO 
 
 To Bah t nee 
 
 1886 
 
 Sept. 
 
 1 
 3 
 
 8 
 1 
 
 18 
 :?0 
 
 Oct. 
 
 To Stock . . . 
 
 " Mdm 
 
 " John Smith. 
 " Ji. Fullerton 
 
 " Mdse 
 
 •• H. Fullerton 
 
 To Bal. on hand. 
 
 1886 
 Sept. 
 
 Oct. 
 
 1 
 
 2 
 15 
 
 27 
 •io 
 
 To Stock. 
 
 Cash 
 
 Bills Payable.. 
 
 '* Loss and Gain* 
 
 i| To Bal. as per Inv. 
 
 1,514 %4> 
 
 U5U 
 
 1886 
 
 Sept. 
 (( 
 
 Oct. 
 
 1 
 30 
 
 By Stmdries 
 
 " Loss and Gain 
 
 By Bal. from old 
 a/c 
 
 Cash. 
 
 500 
 
 72 
 
 30 
 
 50 
 
 310 
 
 100 
 
 1,06^ 
 
 ^-?/, 
 
 i- 80 
 
 i 
 
 1886 
 Sept. 
 
 n 
 <( 
 <( 
 «< / 
 
 (< 
 
 2 
 
 6 
 
 
 
 10 
 
 11 
 
 By Mdse 
 
 '• Bank 
 
 ' ' Expense .... 
 " B. Fullerton. 
 Expense 
 
 (( 
 
 28 
 
 << 
 <( 
 
 " Bank 
 
 Bills Payable. 
 
 * * Expense 
 
 " Bahiice 
 
 Merchandise. 
 
 By Cash. 
 " R. Fullerton 
 " J. Pace.... 
 " Bills Rtc... 
 " Sundries. . 
 " Bills liec. . . 
 " Bal lur.... 
 
 39 
 
 Cr. 
 
 1,360 
 
 72 
 115 
 335 
 122 
 610 
 l/f9 
 ISO 
 
 1,583 
 
 20 
 
 30 
 
 50 
 
k 
 
 40 
 Dr. 
 
 BOOK-KEEPING. 
 
 Sills Receivable- 
 
 1S86 
 
 
 Sept. 
 
 8 
 
 (( 
 
 IS 
 
 X 
 
 18 
 
 (< 
 
 21 
 
 1 
 
 29 
 
 To John Smith , 
 " Mdae 
 
 " J. Pace'.'.'.'. 
 " Mdse 
 
 Oct. i / To Bal. from old 
 I I ajr 
 
 1886 
 Sept. 
 
 SepL 
 
 25 
 
 ;(i 
 
 To Cash. 
 
 To B"h<ure. 
 
 1886 i I 
 
 Jiept. 
 
 6 To Cash. 
 
 22 
 
 Oct. I 1 
 
 To Bal. from old 
 ajc 
 
 1886 
 Sept. 
 
 To Stock, 
 
 10 
 122 
 200 
 336 
 149 
 
 816 
 
 816 
 
 20 
 20 
 
 20 
 
 1886 
 Sept. 
 
 ,:(> 
 
 By Balance. . . 
 
 Bills Payable. 
 
 60 
 60 
 
 27 
 
 1886 
 Sept. 
 
 Sapt. 
 
 16 
 
 27 
 
 By Mdse 
 
 By Mdse 
 
 By Bal. from old 
 ajc 
 
 Bank. 
 
 
 
 
 1886 
 
 
 
 50 
 200 
 
 
 ' Scj}i. 
 
 '■'.1 
 
 
 
 
 — . 
 
 
 
 
 250 
 
 
 
 
 
 --■ ■ 
 
 — 
 
 
 
 
 250 
 
 
 
 
 By lialaiicc 
 
 John Smith. 
 
 60 
 60 
 
 27 
 27 
 
 27 
 
 
 ! 
 
 ! 
 
 
 250 
 
 i 
 1 
 
 
C'r, 
 
 Sh! 
 
 iO 
 
 816 
 
 20 
 
 60 
 
 
 60 
 
 
 27 
 27 
 
 
 27 
 
 
 :iio 
 
 250 
 
 ~ 
 
 40 
 
 
 _J?._ 
 
 r=: 
 
 *"'^ 
 
 Dr. 
 
 BOOK-KEEPINQ. 
 
 JR. Fullerton. 
 
 41 
 Cr. 
 
 1886 
 
 Sept. 
 << 
 
 <Jct. 
 
 4' ToMdse 
 
 to '\iCmLi 
 
 To Bal. from old 
 
 ajc 
 
 
 
 
 1886 
 
 
 
 llo 
 
 
 Sept. 
 
 17 
 
 
 o 
 
 
 >« 
 
 ^u 
 
 
 100 
 
 
 t ( 
 
 , ,'/ / 
 
 •■s 
 
 1 
 
 70 
 
 — 
 
 
 
 By Gash . 
 
 ^4 
 
 I r>o 
 
 100 
 
 220 
 
 J. Face, 
 
 1880 
 Sept. 
 
 To Mdne. 
 
 188Q 
 Sept. 
 
 
 9 
 11 
 
 22 
 :,'8 
 
 1886 
 Sept. 
 
 30 
 
 To Expense. 
 
 •' Sfock . . . 
 
 3sr> 
 
 33L 
 
 1886 
 Sept. 
 
 21 
 
 By Bills Bee 
 
 Expense, 
 
 To Cash 
 
 
 10 
 
 1 
 
 10 
 
 1 
 
 ■i.i 
 
 20 
 20 
 
 1886 
 
 S'p/. 
 
 Jii 
 
 ■ /i;/ Lot<-> it' ' 111 i li , , 
 
 
 f ' 
 
 
 
 ..'I) 
 
 
 22 
 
 20 
 
 Loss and Gain. 
 
 22 
 154 
 
 176 
 
 20 
 
 30 
 
 50 
 
 1886 
 Sept. 
 
 30 
 
 By Mdse 
 
 176 
 
 176 
 
 50 
 
 50 
 
I 
 
 HOOK-KEKPINO. 
 
 Balance. 
 
 c/ 
 
 Sept, ,.wl To M,h,; 
 
 It 
 << 
 
 (^• 
 
 " liilU Rvc. . . 
 
 " linnh 
 
 " Jf. Fidlerton,. 
 
 ^ 
 
 
 
 
 Jssa 
 
 
 JSO 
 
 SKJ 
 
 70 
 
 .10 
 
 so 
 
 JO 
 
 Sept. 
 
 
 1,-m 
 
 
 y. 
 
 30 
 
 liy mils Pn„. 
 
 l,oi4 .10 
 
 »oU',.„c„ or JV«( How//, lio wilr „Km t If, ri^'n-V;' * i*' •^•^'^•'* '^••'•^- •^•"■'^^ --■ 
 
 Bttlanco Aect., and uU the UahiUtie»on the Cr! side. ' ^''•'"""•'•'•.•' "I'l'dr oi, the Dr. «ide of ihe 
 
 ^ ^^^ ' v 
 
 I'l't. always .shfws tV 
 vs shewn th<' A'.7 //<>, 
 
 ^C<>ti^^i 
 
 i). 
 
 C). 
 
 8. 
 
 9. 
 
 10. 
 
 
 rJ 
 
 </ 
 
 N") -^ 
 
 '.^ 
 
 r /■, 
 
 i\ 
 
 
 EXERCISE II "^-^-^-^^VMU. 
 
 1. Invested in business, cash $ir,0; goods in .store .^100 
 
 2. Bought for cash 12 bush. Wheat at $1.10 ' * 
 f I^^W J;>'»i Hniith, on account, 2 bbls Apples at .f 1.20. i 
 4. Paid clerks salary, 110. ' \l 
 
 Received from John Smith $1.50, on account. ' 
 
 Deposited in Bank $:]0. 
 
 Bought, on my n.)te at GO dayp, 200 lbs. Sugar at 7c - 
 
 S t S.dr CI ^^2 '''''-' '' ''^''- ^^^^-'^ ''' ^'' V\ 
 
 1 1: ^k!w ^20 w B;:r"^"^*' ''' ''-' ^^^-^ ^^* ^ ' 
 
 12. Paul rent, ,f5. Go(m1s unsold worth $1.30. 
 ^ (a) Make in proper form the Day Book entiies. ^ 
 
 (b) Transfer to the proper accounts in the Ledger. 
 ^^)-_Mii.ke out the statements and close the Ledgtn- 
 
 (d) What are the different ways of finding the^t M'orth? 
 
 EXERCISE III. 
 
 4. Bought 12 bbls. Apples from L. McKay at $1.10. Gave in n-.v 
 ment my note at 30 days. ^ave in p.u- 
 
 5. Deposited in Bank $300. 
 8. Sold M. Nagle 3 bbls. apples at $1.20, on account. 
 
 « 1 o « M V;'";f i^"*'"' ^''^ ^'^ ^^^'^ ''^^ 3 months, 8 bbls. apples -it *! '^0 
 
 12. Sold D. McCown 1 bbl. apples at $1.20, ai'ul 50 bs^tea a 50c 
 
 13. Sold remainder of goods on hand for $40 cash. 
 
 (a) Make the Day Book entries. 
 
 (b) Post directly from the Day Book. 
 
 Oct 
 « 
 
 J 
 
 (( 
 
 ^ 
 
 
 Ki 
 
 '\ 
 
 ■- J 
 
 
 i' 
 
 *fx 
 
 >' \. 
 
 
 N, 
 
 ^ 
 
 \ 
 
 :v^ 
 
Or 
 
 ^ 
 
 
 ( 
 
 .J 
 
 :^l 
 
 \ 
 
 HOOK-KKKI'LVO. ^3 
 
 RECORD OP TRANSACTIONS.-SET II 
 
 Oct. 1, 1880. /'^X'i.l,i,fH N„nie\ ,.,„....., II. . " 
 
 Casl/|^T()f)^^f "";"^''»?^''l •>"^"'^«S invesfin^. „s follows.- 
 
 ^ " 5. H..ld Davi.l i\U.N,.,ugl.t<,„, 2 l,l,l.s. Su,.ar, 5U0 ]l,s. not at IN- 
 nttoc -^"''""'^ ^"" ""^•' '^ '^^^'^'^ Y. H. Toa, GOO l.,,s.. 
 
 rnil^ 14. Sold foha olnnsoa 30 pUs. Molasses at 80c. ; 300 ]hs. Su^^ar M 
 Ih Rec-eivod lu payn.e„t his note at 10 .lavs to,- "40 , 
 
 «-' r* iv'lj "'•^'^^'*''^*<''*^G.Furniturf., $.30. 
 
 MS. Withdrew tmmtho Bank. <l!«2()0 
 
 ^ K " o?' p''''^-T^ ^'■"'" '^'''"' ^^"^■•''•^'"^ ^»^ ^^'^^- cash, .1*30. 
 
 h 21. Prepaid my note favor of L. Mas<.ii vZ %ii -.n ,- 
 
 V ' allowpfl <li') r.n Tj • 1 , , ■'"^•^'"V ^''^ce, !^94.o(» ; di.scount 
 
 \ a ower , .^^..,0. paid balance in cash. TDiscunt is 1.^,.. 
 
 ^ nllowcl in my favor, therefore I must g^i^. • " d t o 4l e 
 
 rVi -- Interest ami Discount Account for ^2.m As In l!l i 
 
 80c ""' "^ '" ^^^'^ ••^•' 1^ •»'^^^' ^^^ Vis. Molasses at i .^\ 
 
 ;; 29. John Robinson paid his note, received 14th inst with cash <k 
 Paid one month's rent, .|!40. ' '^"' * 
 
 Inventories, Oct. JOfh. 
 Mdse.— 200 lbs. Sugar at lOc . 
 
 360 ]'.,s. Tea at 70c. . . .' $ 20 00 
 
 46 gals. Molasses at 75c 252 00 
 
 ^ ^ ' 34 50 
 
 Total f^ 
 
 Set n. IS to be worked out according to tWinstructions given for Se_ ._ 
 
44 
 
 BOOK-KKKPINCJ. 
 
 Allow 5 lines for the :vr(lHe. Aoct., 8 for the Cash Acct., 4 for the liilla 
 Hec. Acct., and .S for each of the others. The following statement is to 
 be jn/i«le iukI flit- Lcflger closed us in Set I. 
 
 Combined Statement— Set II, 
 
 ACCOU.VTH IN LKUUKR. 
 
 /S(!w»-X- 
 
 »rW// 
 
 iMerrhniidim 
 
 ^.HIIIh Ji'ficeivable 
 
 \/)U/s Pai/able {cloned) .... 
 
 yT/ins, /h'omti 
 
 >t/vliit Aforrison 
 
 iJiiH, Jones 
 
 V /iavk 
 
 ^an, Rons 
 
 Expense 
 
 Jnlertat ib Discount 
 
 •' ini's't. .S.\-!S/ 
 /lv•^.s ;. 
 
 ..,-//> ... 
 
 Dr. 
 
 JOO 
 (J 1 4 
 
 40\ 
 
 io\ 
 
 500\ 
 
 7(>\ 
 
 50 
 
 ^'><vii 
 
 Cr. 
 
 2,5/fO 
 
 S32 
 
 40 
 154\50 
 
 40 
 
 80 
 
 200 
 
 100 
 
 2 50 
 
 4,GS1\ 
 
 IKSOURCBH, 
 
 1,575 
 30(i 
 220 
 
 15 
 
 10 
 
 10 
 
 300 
 
 LlAUILITIRH 
 
 LosBis. Gains, 
 
 100 
 
 'i,43(;\50 2,436150 
 
 70 
 
 24 
 
 C' 50 
 
 70 
 
 CHAPTEE III. 
 
 BUSINESS FOEMS. 
 
 In this chfipter a number of business forms of a simple character are 
 given. The pupil will rcciuiro to become familiar with these, as it is 
 necessary for a person keeping a set of books to l^e able to write oft-hand 
 any invoices, bills, notes, tfec, that may be required in connection with 
 bransactions. Besides this, the study of business forms gives the pupil 
 1 iore delinite ideas of the real nature of many of the transactions them- 
 selves than could otherwisj be attained. 
 
 BILLS AND ACCOUNTS. 
 
 A Bill is a detailed statement given by the seller to +lie buyer shew* .g 
 the quantity, ((uality and price of goods sold or services rendered. The 
 date of the transaction and the names of the buyer and seller must also 
 appear on it. 
 
 i/^ 
 
BOOK-KKKPIN(J. 
 
 45 
 
 th« BilLs 
 ueut is to 
 
 MHK8, OAINH. 
 
 i^ 
 
 oO 
 
 70 
 
 A bill \n recHpti'd when the worrln "Rcwivwl I'aviiK'nt," or otlu'r wnn'H t.i ihu «*aiiii' tITact, »re 
 written ut tli<! lM)ttom of It followed li.v the NiKimturt! of thr <rf<litoi\ 
 
 When K'Jodu are Iwught on accim'nt a bill of (hcin Hhould always be t' "n. 
 
 EXERCISE I. 
 
 Sept. 13, 188G. The Central Stoi-!, Port El^in. J. K. Lumunt Ijuys 
 of H. Muir k Co., on account, 20 yds. of Factory Coiron at He; 12 yds. 
 Cashmere at $1.10; .10 ycLs. Scotch Tweed at 1 1.20; 2') lbs. Sug^ir at Dr.; 
 10 lbs. Black Tea at 75c.; 9 lbs. Jamu Tea at 60c.; 7 lbs. Java Coffee at 
 40c. 
 
 (o) Make out the bill on the last day of Sept. 
 
 (6) Receipt it in full on Oct. 1 
 
 Port l^l^in, Sept. 30, 1880. 
 
 Mr. J. K. LAMOJfT, 
 
 Bought of H. MUIR 8f CO. 
 
 /.sw; 
 
 fi<'id. 
 
 Oct. 
 
 13 
 
 To L^O yds. Fnctorji Cotton at 11 
 
 " l,i " ('atilumre " 1 IQ 
 
 "SO " Scotch Ticeed <' 1 '^o 
 
 ' ' ^5 lbs. Sugar • ' o 
 
 " 10 " Black Tea " yj 
 
 " 9 " Japan " " (]0 
 
 " 7 " JavaCoffee " 40 
 
 Beceived Payment, 
 
 H. MUIR cfc CO., 
 
 * ptr L. N. 
 
 
 
 
 0} 
 
 20 
 
 
 IS 
 
 20 
 
 
 36 
 
 
 
 2 
 
 25 
 
 
 7 
 
 50 
 
 
 J 
 
 40 
 
 
 J 
 
 80 
 
 1 
 
 ! 
 
 69 
 
 1 
 
 35- 
 
 acter are 
 as it is 
 I oft-haiid 
 ion with 
 ;he pupil 
 »ns theni- 
 
 shew' .g 
 Bd. The 
 nust also 
 
 EXERCISE II. 
 
 Oct. 14, 1886. The Dry Goods Palace, Kincardine, Ont. Peter Cam- 
 eron buys of McGillivray & Kennedy, on account, 20 yds. Pi-int at S^c. ; 
 40 yds. MusHn at 13c.; 25 yds. Flannel at 32c.; 4 Suk Ties at 50c.; 2 
 doz. Hankerchiefs at 14c. each; 2|- yds. Tweed at 85c. 
 
 Oct. 18, 1886. Peter Cameron buys of McGillivray & Kennedy 13 yds. 
 Ribbon, at 25c. ; 3^ yds. Silk Velvet'at !ii;3. 
 
 Oct. 23. Peter Cameron pays cash C;;10. 
 
 («) Make out and render the bill at the end of the month. 
 
 {h) Render a statement of this on the last day of November. 
 
 [When a bill has been rendered, but not settled at the proper time, it is not ciistomaiy to jrive the 
 Items ag-am unless they are demanded. It is considered sufficient to refer to the itemized bill by usinir 
 the w'ords, "To account rendered," or "To Bal. of old account." The latter is used if a part has been 
 
 paper; 
 
 * This bill is receiptedby a clerk having authority to attach the signature of H. Muir & Co. to suc^h 
 Jers. iiie icucrs "L. IN. • are his mitials. 
 
II 
 
 
 Hi 
 
 «(»OK-KKKHIN(J. 
 
 i 
 
 BXEROISB III 
 
 Oct. 26. S. }r. McMahou pays, on account, cash $5. 
 Dec. 6. S. H. McMahon pays cash in full of account. 
 
 (a) Render the hill Oct. .'U). 
 
 (b) Render a stHtenicnt Nov. .30. 
 ((') Receipt tlie statement Dec. G. 
 
 INVOICE S 
 
 rc,S'/S'aI:::^ujSii;j^'custur'"^ -«..*„. a certified invoice should ..e sent, aa such will be 
 
 Messrs. SMITH .y- ea, 'Montreal, Jan. 1, 1887, 
 
 Bnrrie, Ont. 
 
 Bought of MURRA r c^' FISHER, 
 
 Importers and Wholesale Dealers in Groceries 
 Forwai-ded by ii. T. R, 
 
 ~'~ Terms— Note at 4 inos. 
 
 Bags Coffee, Java, 
 
 221-4, 222-4, 229-5, 
 226-5, S98 
 
 Bids. Stujar, Grantilated, 
 
 262-22, 293-23, 273-22, S2s 
 
 Cartage 
 
 sso 
 
 761 
 
 0.22 
 0.09i 
 
 193 
 70 
 
 264 
 
 CO 
 
 39 
 25 
 
 24 
 
 
 RECEIPTS. 
 
 A Receipt is a written acknowled»menf nf l.a„;«„ • i 
 
 other value. "^^lea^ment ot having received money or 
 
 When a pe.^on pays value which has Uem charged he should take a receipt for ll 
 
 \ 
 
 \ 
 
93 
 
 00 
 
 70 
 
 39 
 
 
 25 
 
 U 
 
 24 
 
 U«»OK-Ki;KnN(i. 
 
 
 / 
 
 47 
 
 (/ieceipt in Full of Account.) 
 ,, . , „ ^^ ^ roHONTo, July 1, 1886 
 
 il A. LAN(iI)()N. 
 {lhceii>l/or Payment on Account.) 
 815 
 
 H«..v,.„ „.,.„. K. n. McKi... Kme.... .>.^2^. ' '^^^ 
 
 H. A. LAN(JDON. 
 {lieceipt for Pent.) 
 
 f'l'-X), rr 
 
 1) • 1 r X ,r ToHONTo, July 1, iHHi] 
 
 liecfMved from L. Mason, 0,h, Hundred and Fiftv l)< ll • 
 for rent of Stores No«. 220 nnd 2->-' \W S / . '"■' "\I"^y"'^»^ 
 
 .SO, ]XSCy. ^""'^^ ^^^•' *'" qUHrtor ending June 
 
 / , , „ . W. WEST & C(\ 
 
 {Agents Receipt.) 
 
 1* • 1 r T , Ohhawa, M»iy 29, 1S8G 
 
 •TACOB R. RUSSELL. 
 
 {lieceipt for Interest Due.) '"'"^' 
 
 ij • w .. ., Clinton, July 1 lft8r. 
 
 Heeeive<l ti-ou» B. Keillor Seventy Dollury in f„ll t - , 
 
 , , ^ WILLIAM MILLS. 
 
 {Indorsement on A^ote) 
 $.'30 
 
 Keceived „„ account of the within note Thirt^ dI"' ''°'- '' ''''■ 
 
 /J? • . J- r. C.W.MILNE. ^^ 
 
 {lieceipt for Borrowed Money.) IP 
 
 Received from C. A. Leeds Three Hund ^'^^t''""'''' ^^^ ^' ^^^^' ^' 
 pay on demand with inteTt f rom daS '^ ^"""^'^' "^"^^ ^ P^o^^^e toO^" 
 
 fj, . , !>• M. SINCLAIR.'^ 
 
 {Keceipt for Note.) ^ 
 
 ^300 
 
 Received from L M Ca,,idv v . ®°y™AMPTON, May 10, 1886. 
 Three Hnnd.d I>ly^i^Zf^ iTtolhltotttit!" ^'^^^ <^^' *» 
 
 D. McGILLIVRAY. 
 
 $300. 
 
 5^ 
 
48 
 
 BOOK-KEEPING. 
 
 DUB BILL. 
 A Due Bill is a written acknowledgement of a debt. > 
 
 ( Non-negotiable . ) 
 
 OsHAWA, Dec. 10, 1886. 
 
 Due John S. Pace, on d«^mand, One Hundred Dollars in goods from 
 store. ' ^ 
 
 H. A. TAYLOR. 
 
 Negotiable by Indorsement. 
 
 1100. OsiiAWA, Dec. 10, 1886. 
 
 D e John S. Pace, or order, on demand, One Hundred Dollars. 
 
 H. A. TAYLOR. 
 
 The Dxie Bill given above is said to be negotiable because J. S. Pace can transfer it to a third partv 
 after writing his name on «-he back of it. Uoth I'ace and Taylor will be held responsible for payment (Jf 
 !t. By Negotiable Paper we mean all notes, due liills, drafts, he, which can be legally transferred 
 as vaiue from one to another, the holder having the right to sue for payment at the time of maturitv in 
 his own name. 
 
 {An I. 0. U.) 
 
 I. O. U. One Hundred Dollars. 
 
 An I, O. U. is not negotiable. 
 
 OsHAWA, Dec. 10, 1886. 
 H. A. TAYLOR. 
 
 CEEDIT NOTES. 
 
 
 A Credit Note is an acknowledgment of the return of goods or of an 
 error in an Invoice. In form it is the same as an Invoice, with the 
 exception that the words " Credited by " must be used instead of " Bought 
 of." 
 
 ORDEES. 
 
 An Order is a written request for the payment of money or the deliveiy 
 of good? , on account of the person whose signature is attached to it. 
 
 (^Non-negotiable Order.) 
 
 1140. GRiitfSBY, June 25, 1886. 
 
 Messrs, Carey & Co. please pay James Hutcheson One Hundred and 
 Forty Dollars and charge to the account of 
 
 MOLLOY & WILSON. 
 
 Negotiable by Indorsement. 
 -f 100. St. Catharines, May 1, 1886. 
 
 Messrs. Tait & Co. please pay W. Lamb, or order, One Hundred Dollars 
 and charge to my account. 
 
 H. P. McLi^REN. 
 
 If W. Lamb wishes to transfer the order given above to another person he must sign his name across 
 the back of it. When he does this he is said to indorse it. 
 
liOOK-KKEPINO. 
 
 49 
 
 {Negotiable without Imiorsetnent.) 
 Messrs. McKay & Co " Montreal, Oct. 1, 16S6. 
 
 „^„ J. W. RANKIN. 
 
 EXERCISE IV. 
 
 November 1, 1886. Bought of H. Muir & Co. 120 yds. Tweed it 90c 
 
 November 4. ■Returned l/ocmIs valued nf ^9?^ +,. a ah i . , 
 
 a due bill for that amount in goudl ^"'"' ^""^ "'""^'"^ 
 
 (a) Write the order on Thomas Craig. 
 
 (b) Write the order received from S. Kennedy and indorse it properly. 
 
 (c) Write the due bill received from A. Allen. 
 
 PROMISSOEY NOTES. 
 
 nmS'LSd tt'pP^y^r' *' ^^^ " "^""' ^''^ ™^«^. ^^ ^^^ Person in whose favor the pro.uiee ia 
 
 Bequiaiteii of a Note.et<: 
 (rt) There must be a. promise in uTiting. 
 (fi) The promise must be for the payment of money. 
 
 (c) The sum of money must be specified. 
 
 (d) The sum specified must be payable unconditiomlly. % 
 
 wilf bVp'ayiZoTdimtS:; P"^""^"* ""^* "^ ^'■'^ '" «-■-■ f" no time for payment is expressed it 
 
 (/) There must be a valuaMe consideration to support it 
 maS^riSy.""^* ""' '"^^^^ ''^ '^ P^'^- -P^ble of becoming le'^ally accountaUe M tke payment of it at 
 
 {Non-Negotiable.) 
 .$400. "Clinton, April 10, 1886. 
 
 /„-..._ E. A. HODGSON. 
 
 ^ 
 
 \ 
 
50 
 
 >w 
 
 BOOK-KEEPING. 
 
 {Negotiable by Indorneuienf.) 
 
 ^2 000. Clinton, May 24, 1884. 
 
 Four mouths aft or date, I promise to pay A. Fori-CHter, or order. Two 
 J nousiiiK I Dollars, value received. 
 
 K. A. HODOSON. 
 A note ia taraHSferahle only when It is made payable to the order of tl.e i.a.vee, or to hearer. 
 
 'it b?^SSn:!;J^n^:S'i^ [r^^""^ "«^'^' ^* '^^'-"^ ^^-y^^'^^^ *« •^■^ ->-. he nu.st",„do.« 
 When the pavoe ^yrite8 only his name it is termed a blank h,dor»,-vienf, and it has the effect ..f ren 
 
 If the payee writes above his signature, " Pay to A. B. only," it is termed a re.frid!ve Indoree.nent. 
 
 If the Jndorser does not wish to render himself liable for payment he should write "WiMionf 
 recourse to me " above his name. This is called a qualified indorsenient. Without 
 
 FORMS OP INDORSEMENT. 
 
 
 Indorsenient in blank : 
 
 Indorsement in full : 
 
 Pay to A. B. or order. 
 
 A, Forrester. 
 
 A. ForrMter. 
 
 Restrictive indorsement ; 
 Pay to A. B. only. 
 
 'iuolifled indorsenient : 
 Without recourse to vie. 
 
 A. Forrester, 
 
 A, Forrester 
 
 (Negotiable without Indorsement.) 
 
 Toronto, July 1, 1886 
 
 Thirty daya after date, I promise to pay John Smith, or bearer, Ten 
 Dollars, value received. , j^cu. 
 
 W. McMANN. 
 
 i, iSX""*" ^ ""^^ *'^^'''^^' *° *'"'■'"' '* ^ "'^'""^^° ^"''°"* indorsement, delivery being all that 
 
 In calculating the date of maturily of a note three davs miiH^ i>o nl1/^,„„J « xx. ., 
 hat is. it falls due on the third day after its erm Im e^fr^l If thk d v i^^f *^^ ^''"f.^^'Pressed, 
 note is not due till the foUowintf day. The three days allowed are tennpd ^/^L ? "' P"blio rest, the 
 in different countriee. "=" "''J"* ""owea are termed Jays tj/- ^mce. These vary 
 
 When the term of a note is given in months, calendar months are meant nnA «« oii« . 
 
 for a deficiency in the nmnber of days in any month This beinir ftipVoT. i^ no allowance Is made 
 notes drawn at 2 months and bearing dates Dec 28 DeoT^ D^RoV^-^^^ pup.l will see that four 
 due on the eame day, viz.: March 8 of the next year! ' ^ ' ^^"^ ^^ respectively. wiU become 
 
 The day on which the note is dated is not counted in computing the date of its maturity. 
 
i 
 
 , 1884. 
 
 •der, Two 
 
 OGSON. 
 
 arer, 
 
 nust Indorse 
 
 ifT holdora in 
 
 efft'ct of reii- 
 iiulorsiT and 
 
 ndorsement, 
 
 iidorsement. 
 " Without 
 
 Ill-ester, 
 irrester 
 
 1886 
 -rer, Ten 
 
 iing all th»t 
 
 > expressed, 
 lio rest, the 
 These vary 
 
 ice is made 
 30 that four 
 wUl become 
 
 UUUK-KKKI'IX(J. 
 {Payable at Jiank.) 
 
 61 
 
 When ft note Imoomps due. which hnimo.,. «..<». <».i^, . J. J. SOO'IT. 
 
 i™t;ri "r '""'^■^'''^•"^" "' ^^^^>^'^^:ii:^rSu::r' "■ "• '^ "" •' '^ ^tut^u it-ho^j 
 
 indorM^^XXhlhrmU^rkstSni",;;^^ ''ol'l^^^r Iose« htn .......ody against the 
 
 "^t^r^l^^^^' - ^^-^-^» K%:- -■ - -"^ o, the ho,d,.r 
 
 i.oS:'ffil^;;S,Sr>"^"-^« -*»»"' '^-"- "o«r« on the d.^of ,„ ,„,».to the true 
 
 {Neyotidhle vnth Interest.) 
 
 $1,200. ' I>UN1MH, Mny I, ],s.S(;. 
 
 Thiuy (lays after date, J i)romise to t»iv T T t? 
 
 H„,K.™i Dollar, .iM. i,;t,.,it 72:t;X'l;^C;:^z^r- ''"""'™ 
 
 {Payable on Bmmmd.) 
 8200. ''^'^"- ^^^'^""AHiNES, May 1, 1880. 
 
 On demand, I promise to n/iv Tnn..u n i 
 l)..ll.-i,vs, value received. ^^ ' ^^""'^^ ''' '"•'^^"•' '-^^'^ Hundred 
 
 No days of grace are allowed on doumnd notes. ^' McDOUdALL. 
 
 {Joint Note.) 
 
 BENJAMIN LAWTON. 
 IX payment is not made, the makers sho.ild be Hued jointly. 
 
52 
 
 HOOK-KEEPING. 
 
 
 1150. 
 
 (Joint and Several JSFotes.) 
 
 Brantford, May 3, 1886. 
 
 RCV 
 
 One yeur after date, we jointly and severally promise to pay Peter 
 Cooper, or order, One Hundred and Fifty Bollarsf value received ^ 
 
 L. SMITH. 
 ,, . . ^ J. MACPHERSON. 
 
 'r^^Tv^X:rl^,^^:'aJ.T;^^^^ -«'« •• I Pronnse. &c.." or " We Jointly and 
 
 follo;^f^^T:"^The1oint^ot^of'^L Smi&d fX^l^'f' '' 'T'^'"' '"^^ -"- -^ ^''^ «"« of t,„. 
 Mucpherson. ^ ^ '*'"'^" *"^ '^- Macpherson, the note of L. Smith and tiie note of .1. 
 
 ACCOMMODATION NOTES. 
 
 hv ZTr ^ /'''^"^P'T^"^' "^"^'^^^ *« accommodate some other partv 
 by enabling him to ge> it discounted. ^ ' 
 
 are liable for ^yment to the holder ^** '* discounted, as both he and the indorser 
 
 CHATTEL NOTES. 
 A Chattel Note is a written promise to pay otherwise than in money. 
 
 |jQQ , Southampton, Oct. 1, 1886. 
 
 Thirty days after date, I promise to pay Jas. AVilson One Hundred 
 at Por't E?g?n, Ont '^ ^'^^ ^^ ^'^^'^ '^''"'"■' ^'^ *^^' ^"^ ^^ <^^^^y^reA 
 
 CHECKS. ^' "• ^^^^^"^^^^^• 
 
 A Check is a written order on a bank, made by one having money 
 deposited therein, for the payment of a specified sum to a certain person 
 or to his order, or to bearer. ^ 
 
 canraTsfer'?.'"^ '' '^'^^" '"*'""" '"^ '^^ '"^'' °' *^" P^'''^"" "'^'"^'^ «" 5t he must indorse it before he 
 
 onel'^^'hU^hlSI-eceiv^er"*'^ '"' ^'^"''"* ^"^'" ^''"•''"^T hours noUater than on« day after that 
 In filling a check the particulars should be entered first on the stub. ^ 
 
 • No. 
 
 Date 
 
 188. 
 
 Favor of . 
 
 ^o Toronto, 1 88 
 
 THE BANK OF TORONTO 
 
 ^y to - or Bearer, 
 
 Y^iyDollars. 
 
BOOK-KEEPING. 
 
 EXERCISE V. 
 
 68 
 
 Sept. 1, 1886. Bought of H. Corbett goods valued at $120. Gave in 
 payment my note at 30 days for $75, and an order on Henry Brown for 
 h.ilance. Sold P. Cooper gootls valued at |25.50. lleceived in payment 
 John Thompson's note at 2 numths, dated Aug. 24, 1886. Face of note 
 .^25.50. B»)ught of S. Jarrett 16 cords of Wood at $2 per cord to be paid 
 in goods froin store. He took goods valued at $10, and I gave him a due 
 bill for the balance. 
 
 (a) Write the note given to H. Corbett and also the order. J b 
 
 (6) Write the note received from P. Cooper. 
 
 (c) Write the due bill given to S. Jarrett. 
 
 (d) Define negotiable paper. What does it embrace ? 
 
 •v 
 
 
 EXERCISE VI. 
 
 ? 
 
 .26 ; 40 
 
 ^ 
 
 .r^ 
 
 Sept. 2, 1886. Bought of A. McKay 300 bbls. Apples at 
 bush. Wheat at 70c.; 120 Imsh. Oats at 30c. Gave in payment my check 
 on tlie Molsons Bank for $120 ; an order on J. Taylor for $100; H. Ken- 
 nedy's note in my favor, dated May 24th, 1886, and drawn at 5 mos. for 
 .«^70 ; and my own note at 30 days, payable at the Molsons Bank, for the 
 balance. 
 
 (a) Write the invoice received from A. McKay. 
 
 (b) Write the check, the order, and the two notes given in payment for 
 the goods, the former being negotiable by indorsement and the latter being 
 negotiable without indorsement. 
 
 (c) Find the date of maturity t>f each note. 
 
 EXERCISE VII. 
 
 1. Date of note, Jan. 4, 1886. Time to run, 8 mos. 
 
 2. Date of note, Feb. 28, 1886. Time to run, 3 mos. 
 
 3. Date of note, Mar. 1, 1886. Time to run, 3 mos. 
 
 4. Date of note. Mar. 31, 1886. Time to run, 3 mos. 
 o. Date of note. Mar. 30, 1886. Time to run, 3 mos. 
 
 6. Date of note, April 30, 1886. • Time to run, 4 mos. 
 
 7. Date of note, May 1, 1886. Time to run, 4 mos. 
 
 8. Date of note, Oct. 20, 1886. Time to run, 30 days. 
 
 9. Date of note, July 15, 1887. Time to run, 90 davs. 
 10. Date of note, Oct. 13, 1887. Time to run, 60 days. 
 
 (a) Find the date of maturity of each of the foregoing notes. 
 
 (b) Explain why it is that there are four days between the dates of 
 maturity in (2) and (3). 
 
 (c) Why is it important to know exactly the day on which a note be- 
 comes due ? Explain fully. 
 
64 
 
 BOOK-KEEPING. 
 
 CHAPTEB IV. 
 
 m 
 
 I 
 
 \-i 
 
 it ■ 
 
 This chapter presents a number of sets for practice. In order to test 
 the pupil s knowledge of the preceding chapters, as well as to teach him 
 self-reliance, he is required to work out each set for himself. The results 
 and only such hints as experience has proved absolutely necessary are 
 given. '' 
 
 Two very important auxiliaries are introduced in connection with Set 
 iV., VIZ., the Cash Book and the Bill Book. 
 
 Set VI. illustrates the Day Book and Journal combined. 
 
 EXEBCISB I. 
 Sold Peter Smith, on account, goods $20. 
 Sold James Jones, for cash, goods $40. 
 Sold Peter Cooper, on his note, goods $10. 
 Bought goods for cash $20. 
 Bought goods, on account, from M. L. Hay, $5. 
 Bought goods, on my note, from M. L. Hay, $5, 
 Paid M. L. Hay, on account, $5. 
 A. Mann paid me, on account, cash $6. 
 Petor Cooper paid his note with cash $10. 
 Gave my note for goods, $.30. 
 
 ^ Sn^^""^ ^^**^^^^ ^^*^ ^^ ^y ^'"^""^ ""^ ^^^ ^^^^ i^ ^ of accoimtj, 
 
 !jp4:U. 
 
 Gave my note for $10 to John Jamieson, on account. 
 
 Deposited in Bank cash $100. 
 
 Lent M. L. Hay $50. 
 
 M. L. riay returned the money lent. 
 
 Peter Smith paid, on account, cash $10. 
 
 James Jones gave me Mdse. in payment of his account, $30. 
 
 Sold Mdse. to H. Huston, $30. Received in .payment cash $20 and 
 
 his note for the balance $10. ' 
 
 Lost cash from my pocket $5. 
 Bought a pair of gloves for cash $1. 
 Paid for advertising, cash $20. 
 
 Sold Mdse. to H. Huston and received in payment my own note which 
 
 he held, $70. 
 Paid cash for a suit of clothes, $20. 
 Gave my note for a suit of clothes, $20. 
 Sold 5 suits of clothes to J. Benson at $20. $100. 
 
 (a)^ Journalize the foregoing transactions. [This is intended as an oral 
 exercise to test the pupil's knowledge of the rules given.] 
 
 1. 
 
 2. 
 
 3. 
 
 4. 
 
 5. 
 
 6. 
 
 7. 
 
 8. 
 
 9. 
 10. 
 U. 
 
 12. 
 13. 
 
 14. 
 15. 
 16. 
 17. 
 18. 
 
 19. 
 
 20. 
 21. 
 
 22. 
 
 23. 
 24. 
 
 OK 
 
 1 
 
 t 
 
 I 
 
 t 
 
 t 
 
 t 
 
 
 
 g 
 
BOOK-KEEPING. 
 
 65 
 
 \ 
 
 SET HI—GROOERY AND PROVISION BUSINESS. 
 
 Books used— Day Book an I Ledger. 
 
 EECORD OP TRANSACTIONS. 
 Clinton, Sept. 1, 1886.— Leased a store of H. R. Mann at %\b per month 
 and commenced business investing cash $340. 
 
 2. Bought of A. McHardy, on account, goods invoiced at $500. 
 
 Paid Cash for Fuel $5. 
 
 3. Sold A. H McCoryie for cash 2-5 lbs. Tea at 50c.; 1 box Starch at 
 c -D •■ w'' 3 *>oxes Llacking at 10c. Paid cash for Coal Oil |1.50. 
 
 b. i^iwd A McHardy cash, on account, $300. 
 ' 8. Sold C. Dingman 10 lbs. Tea at GOc; 25 lbs. Coffee at 30c.; 35 lbs 
 
 f"*?^ ^''' ' ^ ^^'^^- -^^^'''' ''^t "f 5.50 per bbl. Received, in payment 
 cash $10, the balance to remain on account, $-4. l' tj' 
 10. Paid cash for Postage $1.20 ; for Advertising $1.50. y 
 
 13. Received from C. Dingman cash, in full of account, $4-?. G^ 
 lo. Sold out rny stock of goods for cash $495.35. Paid H. R. Mann half 
 a months rent with cash $7.50. 
 
 (a) Make the Day Book entries. 
 
 (&) Transfer from the Day Book to the Ledger. 
 
 [The Journal is unnecessary as the iransacllons are of a simple character.) 
 
 (c) Take off a Trial Balance and make the statements. 
 
 {d) Gose the accounts. 
 
 Result.-Net Gain, $20. Present Worth, $360. Cash on hand, $560. 
 
 SET TV— EXPLANATIONS. 
 Two very important books are now brought before the nnfiVo r^^^ +i 
 pupil for the first time. The Cash Book recdves trentriero^^^^^ 
 transactions, and the Bill Book the particulars of all note ,Tc., co" 
 with the business. The pupil will enter each tz-ansactioA fir t Tn^ he 
 Day Book. He will then enter it into the Cash Book if it is a cish 
 ransac ion, and into the Bill Book if a note is involved. He will observe 
 that a transaction may affect both of these books, or only one of them 
 As soon as the posting for October is completed a Trial Balance wi; 
 taken off, and after the Ledger is found to be in equilibrium a sLtement 
 of Losses and Gains, and also a statement of ReLrces and LiawS 
 
 ^ fhrr ^^'a n '•'""*' '^"^^'^^ ^"^^^« ^"^ ^^^^ ^-i" then brclosed 
 into the Loss and Gain account, which in its turn will be closed into 
 Stock, or the Proprietor's account. The investment for the seconTLnth 
 
 will hft +,ak-f>n fT-nTYi +Via c+„4.«, j. -i? , "d oci^uiiu lUOlltn 
 
 All +K«'^ /"*• •••;, •'^^'-^"^^"'^ "i resources and liabilities for the first 
 
 All the accounts m the Ledger for November will be closed aftpr-ff: 
 proper statements are made. ^ ^"^^ ^^"^ 
 
I 
 
 p I 
 
 56 BOOK-K££PINa. 
 
 SET IV.-PURNITURE BUSnTESS. 
 (first month'h transactions.) 
 
 Jiooks tteed — Day jBook, Journal, Ledger, Cash Book ami Sill Book, the tiro 
 
 latter being auxiliaries. 
 
 ■' RECORD OP TRANSACTIONS. 
 
 Oct. 1, 1886. ( ?'^^^£;^.N;?:^!f ) has this clay commenced the furniture busi- 
 ness, investing as follows : Cash, $1,200 ; Furniture on hand, $800. 
 J. Ross owes, on account, $.*}0 ; L. Mason jlias to his credit $40. 
 2. Bouf^ht of J. Richardson, on my note^ 60 days, 2 doz. Bedsteads at 
 $'^ each. 
 
 5. Sold J. Ross for cash 2 Centre Tables at $15 ; 5 French Bedsteads at 
 
 $20. 
 
 6. Bought of J. Richardson for cash 10 Arm Chairs at $5; G Extension 
 
 Tables at $25. 
 / 7. Sold G. Johni-oii, on his note at 60 days, ^ doz. Kitchen Chairs at $Q 
 per do/.; 1 Extension Table at $28 ; 1 Easy Chair^t $7.50. 
 8. Deposited in the Merchant's Bank $1,000. 
 
 *.). Bought from F. Hood 2 tons of Coal for fuel at $7. Gave in payment 
 my check. 
 1 1 . Sold A. Hilkei', on account, 5 carved Blk. Walnut Chau-s at $6. 
 16. Paid clerk's salary with check $10. 
 
 19. Paid cash for Insurance $20. 
 
 20. Sold N. McKinnon for cash 1 corner What-not, ^Ik. Walnut, at $10. 
 
 21. Sold G. McKay 1 Blk. Walnut Parlor Suite, $150. Received in pay- 
 
 ment his note at 30 days for $100 and cash for balance. 
 
 Cash Received- 
 
 1S86 
 
 
 Oot. 
 
 1 
 
 
 5 
 
 
 20 
 
 
 21 
 
 
 27 
 
 
 30 
 
 t 
 
 
 Nov. 
 
 1 
 
 I student's Nam* 
 
 Mdse 
 
 << 
 
 <( 
 
 A. Hilker . . 
 Mdae. 
 
 Balance 
 
 Investment 
 
 Sold J. Ross 
 
 ** N. McKinnon 
 " O. McKay . . . 
 
 On Account 
 
 Sold J. Bruce 
 
 Cmh on hand. 
 
 1,200 
 
 
 
 130 
 
 
 
 10' 
 
 
 
 50 
 
 
 • 
 
 20 
 
 
 
 60 
 247 
 
 i 
 
 SO 
 
 i,470 
 
 1,470 
 
 
BOOK-KEEPING. 
 
 57 
 
 'le tioo 
 
 busi- 
 $800. 
 0. 
 ids at 
 
 ids at 
 
 msion 
 
 at,<?6 
 
 lament 
 
 b$10. 
 1 pay- 
 
 22. Bought Mdse., as per Invoice, from W. Tinsdale, $.300. Gave my 
 
 note at 2 months for $100, my check for .$100, the balance to 
 remain on account. 
 
 23. Paid $2.20 for Postage and Stationery. 
 
 20. Hold J. Koss, o. account, 2 Extension Tables at $.30. 
 27. Keceived fiom A. Hilker, on account, cash $20. 
 
 29. Sold H. Calder, on account, 1 Parlor Suite, $60. 
 
 30. Sold for cash to J. Bruce 2 Extension Tables at $30. Paid clerk's 
 
 salary with check, $10. 
 
 Inventory. — Gootls unsold valued at $883.50. 
 
 Result, — Net Loss, $6.20; Net Capital at the beginning of November, 
 SI, 98.3.80. 
 
 SET IV.— CASH BOOK. 
 
 The Cash Book is kept for the purpose of recording all Cash Trans- 
 actions, It is customaiy to enter the amounts received on the left hand 
 side, and the amounts j^l^jjhit on the right hand side of tlie Cash Book. 
 In an extensive business this book should be balanced every night ; in a 
 limited business once a week may perhaps be enough. The amount of 
 m«»ney on hand as shewn by the CSsh Book should correspond to that 
 found by counting. A comparison can be made at any time without 
 lj;i;lancing the Cash Book formally. Should a difference exist its cau«e 
 nmst l)e searched for as soon as possible, and the error corrected. When 
 the Cash Book is used as an auxiliary care must be taken to see that it 
 agrees with the Cash Account in the Ledger when the posting is com- 
 pleted. • 
 
 The najnes of the other accounts affected appear in the column after 
 that containing the date. The next column containi^t explanation of 
 each transaction, as can be seen by referring to the form given. 
 
 Cash I'aid Out. 
 
 ISSG 
 
 
 Oct. 
 
 6^ 
 
 I< 
 
 8 
 
 i i 
 
 19 
 
 i « 
 
 23 
 
 Mdse fio't of J. Richardson. 
 
 Merchants' Bank . . Deposited. 
 
 Expense Insurance . 
 
 Postage and Stationery . 
 Balance Cow/t ow hand. 
 
 200 
 
 
 
 1,000 
 
 
 
 20 
 
 
 
 2 
 
 20 
 
 1,222 
 247 
 
 i,m 
 
 
 20 
 80 
 
68 
 
 BOOK-KEEPINr,, 
 
 bujL book. 
 
 The Bill Book h kept for the purpose of recording iu a form convenient 
 for reference the par iculars of written obligations, whidx we rec-eive from 
 others an.l whi.h others receive from us. It is divi.led into two parts. 
 
 Ihl^T P ' ;'; ZV^'u'^'T^ !'^^ *''^ ^^'^^' Jiearirable and into the oth.^ 
 the /it/;« Ja,/nble. This book is sonietunes used us one of ori-inal entry 
 and 8ometm.es as an auxiliary merely. In either case it must^e in Im;-- 
 inony with the correspomling accounts in the Ledger. The simplest form 
 IS here presented. The method of entering notes, etc., in this book is so 
 ])lainly seen as to need but little explanation. 
 
 The particulars are to be entered in the Bill Book at the time the not.^s 
 are receivecl or issued. This is very important, especially when this book 
 IS one of original entry. "^ 
 
 As our not^es issued are not in our own possession we must necessarily 
 refer to the Bill Book for the particulars of them. 
 
 Whe^n a note is paid, or otherwise disposed of, the last columns are to 
 be filled as indicated ; and, as a safe-guard, a red ink line is to be mled 
 through the figures expressing the amount. 
 
 Great care must be taken in finding the date of maturity, as an error in 
 this may be tollowed by serious consequences. 
 
 I 
 
 Bills * 
 
 
 When 
 received. 
 
 Payer. 
 
 Indorser. 
 
 1^- 
 
 Where Payable. 
 
 Date. 
 
 
 1 
 
 
 Year. 
 
 ISSG 
 
 Month. 
 
 1 
 
 1 
 
 2 
 
 Oct. 
 
 7 
 ^1 
 
 0, Johnson .... 
 0. McKay .... 
 
 
 M(fse. 
 
 Merchants' M 
 <( 
 
 Oct. 
 
 1^ 
 21 
 
 60 (Is. 
 30 (Is. 
 
 Bills 
 
 When 
 given. 
 
 Oct. 
 
 2 
 
 To whom given. 
 
 J. Richardson. . 
 W. . IHnsdale. , . 
 
 In whose favor. 
 
 J. Richardson. 
 W. Tinsdale. . . 
 
 ffa bo 
 
 Mdse. 
 
 Where Payable. 
 
 Date. 
 
 ear. 
 
 MolsonsBanlc. 
 
 18S6 
 1 ( 
 
 Month. 
 
 Oct. 
 
 60 ds. 
 
 2 m's. 
 
 I 
 
 I I 
 
HOOK-KEEPINQ. 
 
 r.8 
 
 I 
 
 ' ; 
 
 EBMARKS ON CLOSING. 
 
 The pupil will bear in mind that in actual business the Le«Woi- «h..uld 
 he tested every month t., see whether it i.s in equiUbrium or not. Although 
 this involves considerable work it is the best i)lan to adopt, as it oft^u 
 saves tune and trouble. But it is only at certain times, usually once or 
 twice a year, that an inventory is taken, and the accounts showing Iossm 
 and gains are closed. The object of this is to make the account kept 
 with the dealer shew his true financial standinL', which is effected bv 
 crediting it with the . let Gain or debiting it with the Net Lr,ss. Tic 
 •htrerence between its sides will then shew the Present Worth All 
 inventories must be brought down when re-opening the accounts to which 
 they belong respectively. 
 
 The other accounts of the Ledger, thdt is, those which shew resources 
 and liabilities may or may not be closed at such a time, Under ordinary 
 circumstances they are usually left open. But when it is desired to marl 
 an era xnthe hnsxness, to preparvfor receiving a partner, or to premre for 
 transferrxng the ^accounts to ane.n Ledger, the Resource anrSlitv 
 accounts should be closed and the balances carried t.. the new accounts. 
 
 N 
 
 Receivable. 
 
 V/lIKN DUR. 
 
 Year. 
 
 ISSG 
 JSSG 
 
 ?3 
 
 Amount. 
 
 3S 
 100 
 
 50 
 
 ^\■hpn and how disposed of. 
 
 Payable- 
 
 Vear. 
 
 1886 
 1886 
 
 
 
 
 When Dub. 
 
 
 
 
 
 
 1 
 
 i 
 
 1 
 
 p. 
 < 
 
 i 
 
 a 
 
 1 
 
 3 
 < 
 
 
 
 
 
 2r> 
 
 Amount. 
 
 ion 
 
 ^N'iien and how redeemed. 
 
60 
 
 UOOK-KKKFiN(i. 
 
 il 
 
 I mi 
 
 SET IV. -Continued. 
 
 (sKt'ONij month's UUSINKSS.) 
 RBCX)RD OP TRANSACTIONS. 
 Nov. 1, 188G. J^ujnl'a invpstinciifc Hlunvu by Ualnnco Sheet for Octoljer. 
 li. Bought from J. Kichjudsoii Mdse., us per invoice, $400. (Jave in 
 puymeiit my n<.to at GO davH for $200, uii oidcr om H. Cakler f».r 
 $^0, aiul my chi-ck on JMerchants' Bank f(.r })alarice. 
 r.. SoM L, Mason, on account, 1 Blk. Walnut Bookcase at $70. 
 ♦;. SohlA. Ililker 1 Easy Chairat$10; 1 Hofa at $40 ; 1 Black Wahuit 
 Hall Stand, $30, lieccived in payihent liis note at 15 days for 
 $-")0 an<l liis check for Imlance. ^j 
 
 9. Gave \V. Tinsdale my note at 10 days in full of account, %/^ ' 
 
 10. Paid cash for Posta;,'e and Stationei-y, $.'J, 
 
 1 1. ]).'i)osii(<l in jVlcichants' Bank $L'00' 
 
 I"). ]{ecci\(.'d from J. l{..,ss, on account, his note at 10 days fj)C,$G0. 
 
 1 7. 1^-ceived fiorn A. Hilker hi)^ check in full of account, $/C 
 
 1 !». Sol«l J. Bvwve 2 Centre Tables at $.30. Iteceiyed in payment his note 
 
 at 2 moiiJlis f(.r $40 ; check for balance, $^ 
 23. Received from J. Boss, on account, cash, $20. 
 rin7)Bou^dit a Stove f(»r store, $2."), with my note at 2 months. Received 
 ^•— ^ t'Hsh from A. Hilkcr for his note, asper B. B. ~ 
 
 2.'). Bou-iht fium H. II. , id,., son IVldse., as per Invoice, $150. Oave in 
 
 l)aym«'iit ]ny check for .«100 ; the balance to remain on account. 
 27. Paid clerk's salary with cash $20. Paid my note favor of W. 
 
 Tinsdale with check $ — . 
 30. S()ld l,y auction entire stock of goods {rr cash $1,320; and Stove for 
 cash $20. Paid the auctioneer for his services cash $5. 
 Result.— Net Gain, $G3.50; Net Capital at closing, $2,047.30. 
 The pupil will make out a statement of Losses and Gains, and also a 
 statement of Resources and Liabilities corresponding to those which fol- 
 low. These are not to be copied, but to be taken from the pupil's ledger. 
 
 Set IV.— Statement of Losses and Gainc. 
 
 (Taken from Ledgi^r Nov. 30, ISSHJ.) 
 
 ■MdM*- Cr.— Proceeds $1,530 00 
 
 Dr.— Coat t,^3 50 
 
 Eu/jense . 
 
 Difference 
 
 Dr.— Outlay $53 OO 
 
 I Cr. — Proceeds 20 00 
 
 Difference. 
 -Vcc- Getiii. . 
 
 LOSSKS. 
 
 Uo 
 
 or, 
 
 GAINS. 
 
 50 
 
 06 
 
 96 
 
 50 
 
< 
 
 BOOK-KKKPINO. 
 
 Set IV,— Statement of Resources and Liabilities, 
 
 • ( Taken from Ledger Nov. SO, 18HG. ) 
 
 61 
 
 
 JDr. — Amount rec'd 
 
 RE80URCEH. 
 
 LIABILITIRS. 
 
 
 Ca»h.^ 
 
 1,480 
 726 
 
 10 
 30 
 
 80 
 SO 
 
 30 
 
 1 
 1 
 
 << 
 
 Cr. •' paid out 
 
 
 
 . Jo 
 
 
 Balance on hand 
 
 MCa Bank 
 
 Dr. — A mourn dvponiied 
 
 Cr, " withdrawn 
 
 
 1 
 
 
 Balance on depomt 
 
 <sj , 
 
 Bilh Bee 
 
 << 
 
 Dr. — Others' notes reed 
 
 Cr. " •« parted with. . 
 
 ^-^ 
 
 
 Balance on hand 
 
 L 
 
 Bilh Pay 
 
 Cr. — Our notes ismied 
 
 redeemed 
 
 S97 
 
 SO 
 
 2M7 
 
 
 
 Notes outatandimi 
 
 J. Boss. 
 
 Dr. — Our a/c ai/ninst him 
 
 Cr. — His ajc against us 
 
 It 
 
 
 Balance in our favor 
 
 
 L. Mason 
 
 <i 
 
 Dr. — Our ajc against him 
 
 Cr. — His ajc against us 
 
 
 B. Henderson 
 
 Balance in our favor 
 
 Cr. — His a/c against us 
 
 Net Worth , 
 
 Net Investment $1.9S3 SO 
 
 ,0 ^ 
 
 * 
 
 -',494 
 
 2,494 
 
 
 
 Proof ) 
 
 " Gain, as per Statement 63 50 
 
 >>l 
 
 r 
 
 " Worth 2.0A7 tO 
 
 
 
 
 ^ 
 
 50 
 
 SET v.— DRY GOODS BUSINESS. ^ 
 Books used— Bay Book, Journal, Cash Book, Bill Book and Ledger. 
 
 Kincardine, July 1, 1886. Commenced business investing as follows:— 
 Goods on hand, 1 1,200. Cash in safe, $30. Money deposited in 
 the Molsons Bank, $400. 
 2. Bought of Smith <fe Sons goods invoiced at $360. Gave in payment a- 
 check on the Molsons Bank for $300 and ray note at 90 days for 
 balance pep Paid cash for Postage 50c., and for Telegram 25c. 
 
 \ 
 
'?>t)>' mimnj^imm*- 
 
 €2 
 
 \ 
 
 BOOK-KEEPING. 
 
 O 4~ 
 
 
 
 i/^ 
 
 > 
 
 ).50. 
 
 -n/ 
 
 3. Sold R. W. Wismer, on account, 20 yrls. Black Satin at $2 : 40 yds. 
 Brussels Carpet at |1.50; 2 prs. Kid Gloves at $1.50: 3 yds 
 Ribbon at 35c. % ^ , jw». 
 
 5. Paid cash for Fuel, $15.50. Lent Jas. Smith cash $6.50. 
 
 il m %f'Tn^ ^t- ^S ^^^^^"^^re at 90c.; 10 yds. Velvet at 
 
 |LbO ; 20 yds. Carpet at 70c. Received in payment his check for 
 
 ^47 and an order on A. McKay for balance 
 ^^i\ '^-t ^""l Postage $1.3a Paid S. Reid's written order in^oods, 
 
 $l/.oO. I^eceived from R. W. Wismer, on account, his check^on 
 
 the Molsons Bank for $40. 
 10. Received from Jas. Smith his note at 30 days in full of account 
 Jz. raid cash tor repairing store, $3.60. 
 
 14. Sold A. Cameron, on his note at 10 days, 20 yds. Gingham, 12ic. ; 10 
 
 yds. Hannel at 30c.; 40 yds. Cotton at lie; Thread, 12c.; Buttons, 
 
 1 r; a ,\ : ^VlT''^'^ ^'''''" ^' ^^^^ °*«^i i" ^^ill «f account$— . 
 
 15. Sold A. McKay 120 yds. Sheeting at 12c.; 15 yds. Tweed at $1.50; 
 
 3 yds Farmers Satin at 60c.; 12J yds. Cassimere at $1.10. Re- 
 V ceived in payment his check for $20, the balance to remain on 
 
 '~^' account, $ — . 
 
 16. Received from R. W. Wismer, on account, cash $30. Paid for Coal 
 
 U)l cash $1.20. 
 
 \ ]t' Jfrr"^ *'■''"' ^- ^IcKay, on account, his check for $15. 
 
 ^ ciirat^$2 60 '''' '''''"°''''*' ^■^*^'^'" ^^^^^ ""* ^^"""^ ^^ ^^^' ^'"''^'^■ 
 
 Deposited in the Molsons Bank cash $60. 
 Lent R. Rainer a $5 bill. 
 
 Received from R W, Wismer his note at 30 days for balance of 
 account, $-4?. r- 
 31. Paid Clerk's salary with my check on the Molsons Bank, $30. 
 
 Y^nto^es, July 31st.-Mdse., Goods on hand, $1,338.81; Expense, 
 ruel on hand, $5.50. ^ ' 
 
 (a) Make the proper Day Book, Cash Book and Pill Book entries as 
 they occur, writing all the business papers required. 
 
 (b) Transfer to the Journal and thence to the^ Ledger, indexing each 
 
 (c) Test the equilibrium of the Ledger and then make the proper state- 
 JKents. r f ^^ 
 
 (d) Close the accounts in the Ledger. 
 
 ^o^^o""^*-;;:^^'^ '''' ^''''^^ $105.65. cash in Bank, $130. Ket Gain. 
 $20.38. Present Net Capital, $1,650.38. ^ 
 
 SET VI—JOUENAIi DAY BOOK. 
 
 ^^- yi. is intended to illustrate a somewhat practical methed of keepinjr 
 accounts. The pupil who has written carefully the previous' sets and 
 
 N( 
 
 26. 
 
 27. 
 29. 
 
 ,/ 
 
BOOK-KEEPING. 
 
 63 
 
 mastered them will find but little difficulty in combining the Day Book 
 and Journal. The Journal entry is given first in order in plain writing of 
 medium size. This is followed by a, full description of the transaction in 
 as concise a form as possible. The pupil will observe that the explanatory 
 words should be arranged in such a manner as to be readily distinguished 
 . xrom the otlier part of the entry. To effect this, they are written in a 
 smaller hand and placed at some distance to the right of the column foi 
 the Ledger Folio. (See the Form given on page 65.) 
 
 The advantages of this method over that exemplified by Set I. are as 
 follows : — 
 
 (1) Time and labor are saved, 
 
 (2) The expenditure for books is diminished. 
 That shewn on page 65 will be found sutiicient for illustration. 
 
 INVOICE BOOK 
 
 The details of purchases should be entered into the Invoice Book 
 There are different methods of dealing with invr es. Some accountants 
 enter an abstract of each in this book, and file the original invoices in such 
 a manner as to be convenient for reference, (See instructions for filin^r 
 business papers, page 192.) Another plan is to paste each invoice when it 
 . is received into the Invoice Book, indexing it,* When several are received 
 from one person or firm, it is well to put as many as possible of them on 
 the same page in order, the first .being at the top, the next immediately 
 below It, &c. The book should be made of strong, light paper, and «ach 
 ieat ot It should be wide enough to leave room for a money column to the 
 right of the invoices into which to enter the amounts. 
 
 THE INVENTOflY BOOK. 
 
 The Inventory Book is used for recording all values of property on 
 hand, of interest accrued, of rent paid beforehand or unpaid, of articles on 
 hand which were charged to the Expense Account, (fee; in short, all values 
 representing resources or liabilities in connection with loss and iraln 
 accounts. ' ° 
 
 It is necessary in business to take at stated times, an account of all such 
 values, (fee, in order to adjust the gains and losses properly. 
 
 The inventory of goods on hand is found by counting, weighinc^ or 
 measuring the articles in the store, and attaching to them the amounts for 
 which they could be bought at the time. In actual practice, however it 
 is customary to take down the cost of any particular line and to add' or 
 subtract an estimated amount when necessary. 
 
 1 J* J/ H ^f "^1'^ y^^^^. " '"'^^ business will be done with a house, several (jonsecutive Dao-ea should !« 
 it ^tr.^ ?LM!"rir ''■•^™ •*• ™« •« ^«P--»y -P^^tant' when thrjurSL'eVoTmeSlfd '" 
 
 are posted from this book. 
 
 188 
 
 vJ| 
 
 
 f- 
 
64 
 
 BOOK-KliKPING. 
 
 SBT VI.-GRAIN BUSINESS. 
 
 Boohs v^^Jonrnal Day Book, Cash Book, Bill Book and Ledger. 
 FIRST MONTH'S TRANSACTIONS. 
 
 III wiro, !fr.,uua („K)(ls m storo, valuwl at $600 ' 
 owosinocmuccountlU). 
 
 John Siiiini 
 
 't!u!;; i! lTl""*,'r "v;;" ■'i.:^i';y-:..'^^ •'-'■■ ^vhrnt ,.t 
 
 cash for Fiini «ftin ir 1 r i. ;y .V "•^"- '^ '"^'^^ ""^ '•'^•- P"" 
 
 ut ^(,0 0. I As il.o inv(,uv8 uro kept in a Look f,,,- the nurnoso ...• 
 propody hhH . an<l iuay thoroforo ho r.f.r.v.! (o, it is otCJel v 
 to givo tho itonuH of purchaso iu tho Day ]i„ok. ^ 
 
 5. raid cash tor Htationory, $] .50 
 
 I!* |J^,^^;'''''"^'^v ^f"'» tlie business casli |100. 
 
 U P-dl PI "{ '^^^- ,^^'^•^"^/'»^ ^'-I'. 100 hush. WJieat at 75c. 
 14. Paul Clerk's sahtry with cash, $20. 
 
 16. Bought of IT. Martin 80 bush. Barh^y at 50c. (Jave in payment John 
 .Jamiason s note for $— . ^^ ^ •">im 
 
 20 ^.'mM ' m'7." '^^^'"\^^'"^^''' «" '^««<»»'^<^> '^^^ ovdev on A. Baker foo |i0. 
 20. Sold M Mullen, on Ins note ut 3 months, 80 bush. Barley at 55c 
 
 T^;To"^p"'r'^',''--t'" l^-->^ -te iGO^i) s;ount - 
 oft, $1..)0. Proceeds paid with cash, $598.50. 
 
 [Debit Bills Payable ; credit Int. & Dis. and Cash. Why ?! 
 
 25. Received cash in payment of L. Mason's note $_. 
 
 QA S^-TJ,?'^ f ':'''" '^''^"' ^"^^^'^^ "" account, cash $20. 
 
 tJO. Paid Clerk's salary with cash $20. , • 
 
 Inventories, Oct. 30, 1SS(}. 
 
 Mdse.— Goods on hand *aoi rn 
 
 Expense.— Goal Oil ^"^l ^ 
 
 D OO 
 
 Result — Net Gain, $10 ; Present Worth, $2,550. 
 
: Cash 
 
 P.-. 1,1 
 
 pose or 
 L'easary 
 
 at one 
 
 ' John 
 icount 
 
 ^ 
 
 J 
 
 uook-ki:kpin( . 
 
 SET VI.-JOURNAIi DAY BOOK. 
 
 Clinton, Oct. 1, 1886^ Dr. 
 
 ....V...f^l;)':«.na-.)^^ei han thi. day covimevml the 
 Oram JimtmtHS ivith (hefoUoivwy Ji.HotirccH :— 
 
 Sundries 
 
 Dr 
 
 Cash 
 Mdse 
 
 2^0 .(Pf>l'"'» iittliio Iiere) 
 
 Bisects invested. 
 
 A s 2»'r (J, B, 
 
 John Smith 
 
 As per Inventory. 
 
 Owen me on account. 
 
 2 ■ 
 
 B. liecelvable Dr 
 
 To Mdse......... 
 
 Sold L. MoHon on his note, an per 
 B. Ji., 30 bmh. Wheat at 7!ic. 
 
 — -^— — _^_______ «« 
 
 Expense Dr * 
 
 Mdse 
 
 To Cash. 
 
 Paid for Fwlfor Store, 
 <( 
 
 Dr 
 
 2,000 
 
 coo 
 40 
 
 oO 
 
 To C, Kerr 
 
 Bought cm ale goods, aajter Invoice 
 
 No.l. 
 
 A — 
 
 John Jamieson Dr 
 
 To Mdse ....:.'.'.'.'. 
 
 Sold him on a/c, I40 bush. Barley 
 
 at 60c. 
 
 Expense 
 
 ■ 3 
 Dr 
 
 10 
 
 600 
 
 C, Kerr 
 
 To Cash 
 
 Paid for Stationery, 
 6 
 
 Dr 
 
 To B. Payable.. 
 
 Gave on afc. my note as per B, B. 
 
 7 ■ 
 
 B, Receivable Dr 
 
 ^ To Mdse.'.'.'.'.'.'.'.'. . 
 
 Sold H. Smith on his note as ver B Ji 
 
 ion ' '■ i""' ■ ■ --- ^.jj. 
 
 x'rJ vu.j.-t,. h/icac as iVC *' 70 
 
 260 
 
 Barley atSOc I30 
 
 600 
 
 200 
 
 60 
 
 Amounts fonmrd. jj ^ 
 
 U7 
 
 6a 
 
 Cr. 
 
 2,6.f0 
 
 50 
 
 10 
 
 600 
 
 70 
 
 60 
 
 600 
 
 200 
 
 4,U7 
 
 > A" 
 
66 
 
 HOOK KHri'lNd. 
 
 — / 
 
 u 
 
 •i 
 
 
 y 
 
 
 
 SBT VI.-SBOOND MONTH'S TRANSACTIONS. 
 Cmston, Nov. 2. 1886. Hold J. Turnlnill 20 IuihIi. Wluvit ai 72«>. ; 45 
 bush. Ikrloy at, Hie.; 120 bunh. ()a<H ai 20r. Koooivrd in |)ayment 
 his vhwk ou iho bank of MontnvU for $'M\ ami caHli for balanco, ^^^ ^^ 
 .*<. BouKbt of A. Mograw goinls inv»)ioed at 1540.20. (hive in paynionf. 
 nil ovilvr ou .). Smith for $10 ; M. MuHch'm notes tlntod Ocl. 20, for 
 $44 ; n\y own ni)to ai 10 days for }|200, and oaHh for balanw, ,t^'4 u. < 
 Paid for l'\u»l, ciish $5. IVpoHitcd in tlu^ MoIsouh Hank $1,000. 
 
 4. Reooivod fr«tni A. Jlukor, on acoouni, oasli $10. Paid cash for Pomt- 
 
 ago, i^I.lO; Tolcgrmu, 250. 
 
 5. Sold U«»hori Koitli, on Ium iiyto at ^3 moutliH, 25 blvk Flour ai $5.20; 
 
 40 buHh. AVlu'ai ai 75c. fc'U ' <J/{/.U* 
 Cy Tiout P. MoC'alluni a $5 bill. DiHOountod l^obcri Koith's wuU\ dated 
 
 Nov. 5, 1886, ai tlio JSIolsons IJank. I'nco of noto $160; DiHoouni 
 
 $6. Procwds dcposiiod, $154. 
 J>. Ilt^ooivod cash for J I. Sniith'H noto for $200, which 1 iuunodiately 
 
 dop«>sit(Ml in ihe Molsons Jiauk. 
 
 11. Bought, of O. Korr 300 bush. Whoai ai 70o.; 500 bush. Pnrlcy ai nOeJi^^- 
 
 Uavo in paynioni my ohcok.^ Sold A. HakiM" 200 bush. Uarloy ai 
 55o.; 100 bush. Whoai ai 72r.; 120 bush. Oats ai 2.*^!. llwoivod 
 ill jwiynient) his noie for $200, an<l his chock for balance. J O'hO 
 
 12. Prepaid my noto duo 16ih inat. Mico of noio $200. l)iSco{int off 
 
 50c. Proccoda paid vviih check. 
 
 13. Paid Clerk's sjilary with cash $20; P. McCallum returned iho money 
 
 which ho borrowed, $5. 
 
 16. Paid cash for Otlico Furniiui*o $i0. Sold P. M(Callum, on account, 
 
 100 bush. Wheat at 73c. th 
 
 17. Bought of H. Sorby, on my noie at 4 mos., 250 bush. Oats at 25(!.0' '••- 
 
 Sold A. Baker, on account, 12 bush. Wheat at 72c. ii^'i 
 10. Beceived fri>m P. McC^iUum, on accoutii, cash $30. .Sold A. Baker 
 
 20 bush. Barley at 54c. Beceived from him H. Hohu.'in's noie, 
 
 dated Nov. 1, 1886, and drawn at 30 days, for $25. Seiikd^wiih 
 
 A. Bilker by giving him my check for balance due him, $-2^ ^ ^ 
 20. Sold J. Tur>d')u"ll 25 bush. JPeas at 60c. * 40 bu.sh. Wheat at 73e.'>-V^'" 
 
 Received in paynuMit an oixler on J. Craig, which by his reijuest is 
 
 passed to his account. 
 23. Received from P. McCallum his check in full of account $^3, <^>' 
 25. Paid A. Mallory for repairing Stoit^, cash $5. 
 27. Sold D. Gibbings, on account, 25 bush. liarley ai 53c^ v" 
 30. Withdi-ew from bank $100. 
 
 Paid rent for the three months ending Dec. 31st, with check, $75. 
 
 ImriUories, JSov. 30th, ISSil. 
 
 Mdse. — Gooda on hand |1,435 01 
 
 xuAjr^istyr vitiv^ X Its III f '.11^ ^, , , . V ■ yv 
 
 Rent paid beforehand 2.') 00 
 
 Result.— Net Lt>ss, $25 ; Net Capital. $2,525. 
 
 S( 
 
 w 
 
 <1 
 

 J 
 
 HOOK KKKIMNii. 
 
 07 
 
 If tho pupil h/is (lone the precoditjg H«»t corrootly liin L«>mm aiwi Gain 
 ucoouiifc Mn\ \m Hulttuco uccouut «houl<l conwiMjiKl roHpoctivoIy to th« 
 rollowini(; — 4 ,r 
 
 />r. 
 
 ( LoMtf*. \ 
 
 Loaa and Oain. 
 
 ( (iHltH. ) 
 
 tsso 
 Nov, 
 
 ;{() 
 
 To E/x/miMf . . . 
 " ltd. A' JHh. 
 
 
 •1 
 
 .If, j 
 
 ,V,7 
 
 ./.S'.V,'/ 
 
 Noi\ 
 
 :w 
 
 //(/ M<Ihv 
 
 
 
 HS 
 
 "' Sfork 
 
 
 Wi 
 
 ' 
 
 n.j 
 
 nr, 
 
 
 
 
 
 i)r. 
 
 y Renourocii. ) 
 
 Balance. 
 
 ISSfi 
 
 
 .Vov . 
 
 ;ni 
 
 
 
 
 
 
 
 
 
 
 
 ~::^*s 
 
 'I'o Af(lni\ {/hi.'.) . . 
 " Ex})viiHi- (Jnr.). 
 
 " Ciuh 
 
 " liixuk 
 
 " //. fr<i ;,/.... 
 
 
 
 
 /.vw 
 
 
 I4.tr, 
 
 01 
 
 Nov. 
 
 
 :U 
 
 .10 
 
 n 
 
 
 ■ .tjf/ 
 
 bO 
 
 
 
 r,is 
 
 h\ 
 
 
 
 3:tr, 
 
 
 
 
 U 
 
 :.'o 
 
 
 
 i.{ 
 
 ,:r, 
 
 
 
 •.ir,s7 
 
 50 
 
 I 
 
 
 — - .- 
 
 
 
 ' 
 
 iO 
 
 y i.iiiidiiticN, ) 
 
 " Htuck 
 
 Cr. 
 
 v,.i 
 
 no 
 
 '2r,H7 \r,o 
 
 CHAPTEPi V. 
 
 DRAFTS. 
 
 A Draft is uu uncondiiiotuil wiltten r.nlf!.- addrfjsHrd by one pei-Hon to u 
 s(MJoml reijuesting tho i)a,ymout of a .spociHcnl Hiiin of rruu.ey to a third. 
 
 The person who inakeH tlio (haft i,s ternud tho Ih-mmr, the person on 
 whom It IS (hviwn^ is terjiuMl tho Drawee, and the jHTson in wlxose favor it 
 IS drawn is termed tho Payee. 
 
 When a draft is made payable to the Brawc- he is also the Payet.-. 
 
 Drafts are drawn payable "(,n demand," "at sight," a specified time 
 after sight," or a specifi(xl time " after date.' 
 
 Acceptance in its ordinary signification is an engagement on the part of 
 ihe drawee to pay tlie draft, when it falls due, in money. 
 
 •^' 
 
I I 
 
 "° BOOK-KEEPING. 
 
 Until a draft is accepted the drawee is not liable to the holder. 
 
 ortL'^Dg's' «:'«?i-"S»".'sr'' to «..«« o, bill. p.y.b„ ., . „^„ „„, ..^^ „.^,,. ,„ 
 
 Bill, payable ■• .t .Igrhl " or •• on demand ■ a«, expeoMd to be pMd »to.r™,«^. 
 
 There are three kinds of acceptances : general, special and qualified. 
 
 acr^ThP^Ll'T^ ^"*ri^^ ""^'^ "accepted," the date, and his name 
 aLeptlce. ^ acceptance is termed a general or ahsohUe 
 
 :-r 
 
 h! ! 
 
 ii. 
 
 y 
 
 the^r«?tTf ' ^'' r'"^ ^hich restrict to a certain place the payment of 
 the draft, the acceptance is said to be special. Qualified acceptances 
 of two kinds, partial und co7iditional. «*^i^«ptcinces 
 
 are 
 
 When the drawee binds himself to pay only a worHon r,t rh^ «.«„. i. . ,, . 
 payment, the acceptance is said to be ^HM. ^ *^ *'"°""* **' * ^^"^^ <"• varies the time of 
 
 When the bill is made payable only when a ppr+nSn »,ro„t i, x. 
 
 ditional. ^ ^ ^ ^" * *'*"*•" ^^«"* happens, the acceptance is said to be con. 
 
 No particular form of acceptance is necessary. Red ink is generally used. 
 
 If, upon proper presentment, the drawee refuses to honor the draft if th.„ >. xu ^ 
 
 prior parties to it to notify the drawer at once of such refusal. becomes the duty of the 
 
 The drawer, when notified of the non-acceptance of the bill nhnniH «„,*», v , ^ .. 
 face, and such damages us are allowed by law. ' "'^ P*^ ^'^^ '*<'^<'«'" *he amount of its 
 
 The object of the notice is to warn the parties that they will be lobked to for payment. 
 
 unn^cLsaly!'" ""^^ "*^^ ''"^ '"^ P"*^^*^'* ^^ ^ -*-^ P"'''-. but in the case of Inland bills a protest is 
 
 When a bill is protested, notice of the same should be sent immediately to all the parties to it. 
 When a bill which has been dishonored by the drawpp ?a n««r.,^*»j i ^u- , 
 the prior parties to it. such is termed an acceptance iM^mlfXIf^ ^^ * ^^"^ P^'**^ ^"^ ^^e honor of 
 
 Days of grace are allowed on all bills but those payable on de.rmml. 
 theYat"e reS^\^Xf lli^t'^^Zi^r S !^l nTe! " " ^"'"'""'^ -*^' *»»« '^P^r bearin, 
 in thVci^'J/lliXf P'^^'^''^ *° ""'''' *« P**^- -"«* J-^-« it before it can be transferred, inst. as 
 
 The law regarding promissory notes is applicable to drafts and bills. 
 
 
BOOK-KEEPING. 
 
 {Sight Draft.) 
 
 69 
 
 $100. 
 
 Clinton, Jan. 1, 1887. 
 
 At sight, pay to J. W. Chisholm, or order, One Hundred Dollars, value 
 received, and charge to account of 
 
 To L. P. SMITH, ^^^^"^ ^- BRICKER. 
 
 Toronto. "^ 
 
 {Time after Sight.) 
 
 $100. 
 
 Clinton, Jan. 1, 1887. 
 
 At twenty days' sight pay to the order of J. W. Chisholm One Hundre d 
 Dollars, value received, and charge to the account of 
 
 To L. P. SMITH. ^^^^^S ^ BlUCKEB. 
 
 Toronto. 
 Forna of acceptance of the forcKoing Drift ; * 
 
 " Accepi;4)d, Jan. 6, 1887. 
 
 *' L. P. SmUh." 
 
 {Demand Draft.) 
 ^,,„^ Clinton, Jan. 12, 1886. 
 
 On demand, pay to the order of J. W. Chisholm One Hundred Dollars, 
 value received, and charge to account of 
 
 To L. P. SMITH, ^^^^^ ^' BiilCKER. 
 
 Toronto, 
 
 {Time Draft.) 
 >,.„^ Clinton, August 16, 1886. 
 
 Sixty days after date, pay to A. H. Smellie, or Order, Two Hundred 
 and Thirty Dollars, value received, and charge to account of 
 ToL. P. SMITH, MOSES L. BlUCKER. 
 
 Toronto. 
 Form of acceptance of Time Draft : 
 
 "~~ " Accepted, 
 
 " L. P. Smith." 
 
 Bank Drafts are extensively employed for making remittances. 
 risl^'/inTuZd fn it'Ft?aSL*?^lSn?' '°' '""'"^' ' "'"" '^ '"* " «'"''" "^««°" °' *'« "'^ ^^'^^ '^^^ "« 
 
 RULES FOR JOURNALIZING DRAFTS. 
 
 When a person draws on us without giving us equal value at the time 
 we make him Dr. 
 
 TlTl 
 
 vv ■ 
 
 r iiua we araw on a person and do not give him equal value at the time 
 
 Me make him Cr. 
 

 III ; il 
 
 \Vh 
 
 •^ BOOK-KEEPING. » 
 
 DRAFT PAYABLE AT 8IQHT OR ON DEMAND.' 
 
 Drawer's entry / ^^^^^ -^»'- 
 
 V 1^0 Drawee, 
 
 Drawee's entry. .. f -^^^^er Dr. 
 
 I To Cash.f 
 
 Payee's entry ( ^«*'* ^r. 
 
 l To Drawer, 
 
 DRAFT PAYABLE AT A CERTAIN TIME AFTER 8IQHT. 
 
 Drawer's entry / ^"^^^ ^»-- 
 
 I To Drawee. 
 
 Drawee's entry .... / ^^'^w^^'' Dr. 
 
 I To mils Payable. 
 
 Payee's entry / ^^^^ Receivable Dr. 
 
 \ To Drawer. 
 
 EENEWING AND DISCOUNTING BILLS. 
 
 It occasionally occurs even in a well managed business, that a note is 
 a}>out to fall due for the payment of which the dealer is not at the time 
 prepared liie proper course for him to take in such a case is to ask f,.r 
 a renewal for a long enough period to enable him to secure the necessary 
 means of payment. Of course, the dealer having asked for an extension 
 of time must pay interest, and any other charges that maybe incurred 
 The usual practice is to draw the new note {i.e., if the favor is grantedi 
 for such an amount as will cover the face value of the note retired, and 
 the interest on the same for the time that the new note has to run 
 together with all other charges that may be connected with the renewal' 
 Sometimes only a partial renewal may be desired. 
 
 Again a dealer may have a note outstanding which he wishes to pay 
 before it is due. In this case, discount will be allowed, and the dealer 
 will pay a sum which is less than he would have paid if he had waited till 
 the maturity of the note. Or, he may hold a note against another party, 
 and he may wish to get money for it before it is due. In the latter case 
 he will be obliged to take a smaller amount for it than if he had waited 
 till its maturity. 
 
 are added, except in the case of paper payable on demand. business. Daja of giace 
 
 The phrase " dincminting a note" is used with different meaninirB fi ^ tii<> a^n:.. t j. • 
 
 my possession before it nmtt.res for a sum less than whaufcXf or l^hen die (2 ) Ze ri^Z "*?*"'" 
 note which another holds, before it falls due. with a sum less than it calls for at mafnXv LLT^ 
 case the amount thrown off is termed the discmnt. * maturity. In either 
 
 * Wien the Drawer makes a sight or demand draft payable to himsplf hJa ^nfr^ ,„5ii k.. ru»u n 
 DrSr'* ''^'" ""^ ^'■'^' " '"^^ ^'''' '" '^' -anLrh's tSrSi'bJ lf,7Sivabl?k?t.; 
 t If the Drawee pays the draft by issuing a check, he will credit the Bank instead of Cash. 
 
 
BOOK-KEEPING. 
 
 71 
 
 The pupil is expected to study the following until the application of 
 rules already given js seen, and thoroughly understood : 
 
 TRANSACTIONS. 
 
 EXAMPLES. 
 
 JOURNAL. 
 
 1. Discounted at bank H. C. 
 Mann's note. Face, $100. Dis- 
 count allowed, $5. Proceeds 
 received in cash, $95. 
 
 2. Discounted at bank M. 
 Taylor's note, due 73 days 
 hence, at 6%. Face of note, 
 1250. Proceeds deposited. 
 
 3. Drew a draft on C. Cam- 
 eron at 10 days sight and dis- 
 counted it at the bank at 8%. 
 Face, $365. Discount allowed. 
 I — • Proceeds remitted to A. 
 Murray on acct. 
 
 4. Prepaid with cash my note 
 favor of Amos Drummond. 
 Face, $40. Discount off, $2. 
 
 5. Retired Jas. Stark's note 
 for renewal for 2 months. Face 
 of note, $ 1 50. Interest on same 
 for 2 months at 6%. $1.50. 
 Face of new note, $151.50. 
 
 6. Renewed my note favor of 
 Morley & Wismer. Face, $60. 
 Gave a new note at 3 months 
 to cover the old note and in- 
 terest thereon at 8%. 
 
 7. H. J. Manning has re- 
 newed his note. Face, $350. 
 Received in part payment an 
 order on G. McKay for $150 
 and a new note for $202. 
 
 8. G. Johnson has failed, 
 paying 80c. in the dollar. He 
 pays Ills note "which I hold. 
 Face, $700. Proceeds received 
 in cash. 
 
 Cash J)r 
 
 I)it, de Din. " ....... 
 
 To Bills Receivable '. '. 
 
 Bank Dr 
 
 Int. Jk Dis. " .....,[[ 
 
 2'o Bills Beceivable . . 
 
 A. Murray Dr.,. 
 
 Int. d! Dis. " . . . 
 
 To C. Cameron. 
 
 Bills Payable Dr. . 
 
 To Cash 
 
 " Int. dsDis. 
 
 Bills Receivable Dr 
 
 To Bills Beceivable . . 
 " M.d!m 
 
 Bills Payable Dr 
 
 Int. ds Dis. " . . 
 
 To Bills Payable \ 
 
 G. McKay Dr 
 
 Bills Beceivable " 
 
 Ih Bills Beceivable 
 " Int. d: Dis..... 
 
 Cash Dr 
 
 Loss ds Gain " 
 
 To Bills Beeeivaltlv . 
 
 95 
 5 
 
 3 
 
 363 
 1 
 
 40 
 
 151 
 
 96 
 OJf. 
 
 100 
 
 250 
 
 365 
 
 50 
 
 60 
 1 
 
 150 
 
 202 
 
 560 
 140 
 
 20 
 
 150 
 1 
 
 61 
 
 350 
 
 700 
 
 50 
 
 SO 
 
72 
 
 BOOK-KEKPINO. 
 
 ^H 
 
 -fll 
 
 1 l^ 
 
 BXAMPL]a3S.-<0ontlnued.) 
 
 TRANSACrnONH, JOURNAL. 
 
 9. Ah the indorser of H. 
 
 I 
 
 ptty 
 
 ?1.03, 
 Mer- 
 
 $105 
 
 Stewart's note for $100, 
 it and protest charges, 
 with my check on the 
 chants' Bank. 
 
 10. liought g«XMla for 
 at a wile. Gave my note at 10 
 (lays in payment. Before Glov- 
 ing tlie go«Hl8 I sell them for 
 $120, getting in payment my 
 own note and a sight draft on 
 A. Kean for 
 
 1 5. 
 
 //. Stewart Dr 
 
 To Merchantti' Bank . 
 
 Cash Dr 
 
 To L089 dt Oain 
 
 101 
 
 15 
 
 OS 
 
 101 
 
 15 
 
 03 
 
 EXERCISE I. 
 
 1. James Furrier, of Windsor, draws on H. A. Smith, of Montreal, for 
 
 $60 at 30 days. 
 
 2. H. A. Smitli accepts Furrier's draft. 
 
 3. L. Mason gives Peter McLaren, in payment for goods bought one month 
 
 ago, his note (negotiated by indoi-sement) at 3 months, for $500. 
 
 4. Mason prepays his not(\ being allowed a discount of $20. 
 
 T). Miller ife Co., St. Catharines, send W. Smith, of Paisley, an invoice of 
 g(KKls amounting to $150, and draw on him t 10 days' sight, 
 (rt) Give Furrier's Journal entry, and write the draft. 
 
 {h) Give H. A. Smith's Journal entry on accepting. Accept the draft 
 for Smith. 
 
 (/') Write Peter McLaren's Journal entry on receiving the note. Make 
 tlie note and indorse it in blank. 
 
 {d) Give Mason's entry on prepaying it. 
 
 (e) Write the draft for No, 5. Accept it on the 22nd day of September, 
 1886, making it payable at St. Catharines. 
 
 (/) What is meant by negotiable paper ? Name the different kinds. 
 
 EXERCISE II. 
 
 Accepted S. W. Perry's draft for $123.75 at 10 days' sight, in favor of 
 
 J. F. Morrow, payable at the Molsons Bank. 
 Paid W. Martin in full of account, by giving him S. Furrier's note at 
 
 6 months, indorsed by H. Houston, for $750. Date of note, March 
 
 30, 1886. 
 Paid S. W. Perry's draft on me with cash. 
 N. C. McPherson & Co. failed, and made an assignment, their creditors 
 
 receiving GO cents in the dollar. My claim 'was $250. Reeeived 
 
 in settlement W. H. Muir's acceptance, $150. 
 
 1 
 
iiOOK-KEEPING. 
 
 73 
 
 {a) Write the draft for No. 1, and accept it. Give the Journal entries* 
 of all the purtiett concerned. 
 
 (6) Write the note for N«». 2. On what day will it fall due? 
 
 (<■) What are the Journal entries for Nos. 3 and 4 ? 
 
 {«l) I)<«tine acceptance, promisHory not«', <liaft and order. 
 
 (e) Illustrate by examples the different kinds of indorsement, and state 
 the effect of each. 
 
 {/) When ;^ a bill or note negotiated without indorsement? 
 
 /. 
 
 if 
 
 // 
 
 EXERCISE III. 
 
 1. Gave .Tas. Smith, on account, my dnift at 10 days on L. Mason for |540. 
 
 2. Paid Wm. Jones' sight draft on me for $80. 
 
 3. Jas. Smith reUuned my <Iraft on L. Mason on its being dishonored. I 
 immediately remit cash $40 (1.) 
 
 4. R. Mills drew on me for $100 at 30 days. I prepaid the draft with 
 cash. Discount off $2, 
 
 5. Di-ew on John Ross at .sight for $100 in favor of Wm. McKay,Who 
 had to hia credit $75 in my books. Received McKay's note for 
 amount overi^aid. 
 
 C. Accepted H. Corb«;tl ' , draft on me at 20 days' sight, favor of James 
 
 MeCillivray, for$120. 
 7. Prepaiil my acceptance in favor of James McGillivray. Discount off 
 
 $3. (Jave my -heck for balance, $117. 
 
 6. Drew a draft on K. T. Todd in my own favor for $30. Had it imme- 
 diately discounted at the bank. Discount off $1. Proceeds de- 
 posited. 
 
 Had Wm. Gray's acceptance for $60 discounted at the bank. Dis- 
 count allow'd $4 Proceeds deposited. 
 Gave H. Leonard my draft for $25, on Jas. Brown, in payment f«.r 
 , goods, which I immediately !~»ld for $30 in cash. 
 
 - (a) 'Give luy Journal entries. 
 t lj(ft) Write the draft required for No. 5. ^ 
 
 (c) Discuss the methods of treating No. 10. - 
 
 (d) Make a list >f the Ledger accounts affected by the foregoing, 
 arranging them intc wo classes. 
 
 BILLS OF EXCHANGE. 
 
 A Bill of Exchange is a written order from one person (the Drawer) to 
 another (the Drawee) directing him to pay to a third person (the Payee), 
 or to his order, or to bearer, a specified sum of money. 
 
 Bills of Exchange are of two kinds. Domestic or Inland, and Foreign. 
 
 8 
 10 
 
 I 
 
 n1. 
 
f4 
 
 BOOK-KEBPINO. 
 
 h 
 
 U ^'IJa'''''^ ^'-^ "^ ^f,^^*T ?* ""® P"y*^^« ^'^ *^« ^^'"O ^^W^^T in which 
 
 Jt iH made, and is usually callwl a dra/l. 
 
 ' iX.^ ?'''"','«" ^;". "^ I^xchange is one payable in a different country from 
 th/it in winch it ih nuule. '^ 
 
 iountri/ wi l.out the transnnssu.u of specie, thus avoiding risk, los« of 
 interest and transportation charges. 6 » ^^'^^ "t 
 
 rln«nST ^^^^^^^ at different times, or by different means of 
 
 Z L r n' ""^ tu ^"' "^ ^'^'^™' ^* ^^^^^' ™^>^ ^'^'^ i*« destination as 
 soon as possible. Whenever any one of them is paid the others are void. 
 
 Form of a Set of Exchange. 
 
 Exchange for £200. ^'*^^^''^' ^'^'' ^^' ^^^«- 
 
 Thirty days after sight of this first of Exchange (secoml and third of 
 same date and tenor unpaid) j.ay to Muir & Co, or order, Two Hundred 
 I'ounds, sterling, value received, and charge to the account of 
 
 To Messrs. BARING & 00-. *^^^^ JAMIESON. 
 
 London. 
 
 Exchange for £200. Toronto, Sept. 30, 1886 
 
 Thirty doys after sight of this second of Exchange (first and third of 
 same date and tenor unpaid) pay to Muir & Co., or order, Two Hundred 
 Pounds, sterling, value received, and charge to the account of 
 
 To Messrs. BARING & CO., "^^^^ JAMIESON 
 
 London. 
 
 Exchange for £200. ^'^^™' ^^P*' ^^' 1^««- 
 
 Thirty days after sight of this third of Exchange (first and second of 
 ^me date and tenor unpaid) pay to Muir & Co., o? order, Two Hundm 
 Pounds, sterhng, value received, and charge to the account of 
 
 To Mbssrs. baring & CO., ^^^^ JAMIESON. . 
 
 London. 
 
 EXBROISB IV. 
 
 h Accepted H; McKay's draft at 30 days' sight, favor of Jas. Clark, pay- 
 able at the Molsons Bank, for $150. *^^ 
 
BOOK-KEEPIlfO. 
 
 75 
 
 2. Drew on A. B. McCauI, at 30 days' sight, for $120. HjmI the draft 
 
 discounted at tho Iwink. Discount off SI. 50. With proceeds ] 
 bought a draft on the Molsons Bank, Toronto (Exchange ^%), 
 ■which I remitte<l to H^Calder on account. 
 
 3. Discounted at tho Merchanta' ]Jank E. McKiblK)n'8 note, duo 2 nionthM 
 
 hence. Face of note $40. Discount allowed $1. Procet'«U w 
 ceived in cash. 
 
 4. Sold James Jones goods from store valued at .f 750. Received in j»a'. 
 
 ment his note at 6 months, which I discounted at the Merchant;'' 
 Bank at 6%. Discount allowed $ — . Proceeds remitted to AV. 
 Muir in part payment of my note due this day for $1,000. 
 
 5. Remitted to W. Muir cash for balance of note (No. 4), and interest due 
 
 on the same. Interest $1.30. 
 fi. Bought for cash from Matthew Baker his bill on Paring «t Co., London, 
 at 30 days' sight for j£570, sterling, exchange being at a premium 
 of 9^%. [A bill for £1 costs $V x g]. 
 
 7. II. C. Manley has failed, and his note which I hold is valueless. Face 
 
 of note $25. 
 
 8. Paid with check my note drawn in favor of W. Wentworth, which whs 
 
 under protest. Face of note $150. Protest charges $1.03 ; 6 days' 
 interest $0 25. 
 
 (a) Give my Journal entries. 
 
 (6) Write the draft for No. 1 properly accepted. 
 
 (c) What IS meant by protesting a note? Is it necessary to have a note 
 protested ? 
 
 (<f) Define Bill of Exchange 
 
 EXERCISE V. 
 
 1. Renewed our note, favor of Jas. Brown; due to-day, for $150. Gave 
 
 a new note at one month for $151. 
 
 NoTR.— The $1 which is added is one month's interest on the old note at 8%. 
 
 2. Renewed our note, favor D Cameron, due this day, for $750. Gave 
 
 our note at 3 months for $408 and cash $350 for balance. 
 
 3. Retired M. L. McKinnon's note due this day for $200; received in 
 
 payment his note at 10 days for $100.50, and his check for $100. 
 
 4. Retired John Smith's note due this day for $250. Received in pay- 
 
 ment his note at 3 months for $153, and his sight draft on Jas. 
 Brown for $100. 
 
 5. Renewed R, Robb's note due to-day for one month. Face, $100. 
 
 Interest received in cash, $1. 
 
 6. Sold H. C. Massey 124 bush. Oats at 35c. Received in payment his 
 
 note at 60 days, bearing interest at 8%. Face of note $43.40. 
 
 7. Discounted H. C. Massey's note at the Bank 30 days befoi-e due at 
 
 8% (No. 6). 
 
i\ 
 
 m 
 
 '1 1 
 
 1 
 
 h I 
 
 Ul^ 
 
 - - 1 
 
 ft 
 
 76 
 
 8 
 
 BOOK-KEEPING. 
 
 Prepaid >vith cash my note in favor of Jas. Jones 73 days before due. 
 J^ace of note $60. Discount at 6/. 
 9. Prepaid with check my note for |75.20 in favor of N. Storey 10 days 
 before due. Discount at 5%. "^ ^ 
 
 10. Sold S. \y. Hartt 30 bush, wheat at $1. Received in payment Robert 
 Curry s acceptance due one year hence for the amount. It bears 
 interest at o/ . 
 
 (a) Journalize the foregoing. 
 
 {b) Explain fully what is meant by renewing a note. 
 
 (c) What are the different senses in which the word "discounting" is used ? 
 
 i'l) Write the Hote for Xo. 6 and the draft properly accepted ior No. 10. 
 
 SET Vn.-DRY GOODS BUSINESS. 
 Books used—Journal, Cash Book, Bill Book, and Ledger. 
 
 TRANSACTIONS. ^ 
 
 "December 1, 188S. 
 
 Commenced business, investing as follows : 
 Resources^Cash on hand, $500. Goods on hand valued at $800 '^W 
 Stephens note, elated Nov._ 1, 1886, at 70 days, ben.-ing inle;est at 
 8/^; face of note, $400; interest accrued, $^^'i*?''^ Milne's ac 
 ceptance dated Sept. 8, 1886, at 4 months; fa«e^f acceptance, 
 ^1.^0. H. loster owes me on account, $65.50. V%jr,M owes 
 me on account, $27.30. ' ^^^m^ 
 
 Liabilities-H George holds a non-negotiable note against me, dated 
 Aug. 24, 1886 drawn at 4 months, for $60. > I ove John Patterson 
 on account, $36.90. 
 Paid for Postage and Stationery $1.20. V 
 
 2. Sold R. Purvis 3 pes. Linen, 50 yds. each, at 75c.; 16 yds. Scotch 
 
 iweed, §)l.oO. Received m p^^yment an order on John Patterson 
 wyuch IS passed to his account at his request. Deposited in Bank 
 of Montreal cash, $400. Paid for Office Purniture cash, $15 
 Cash sales, $19.60. , > if • 
 
 3. Bought of H. H. Bunting, on my acceptance at 10 days, an invoice of 
 
 goods amounting to $200. Paid for Insurance cash, $10. Paid 
 for Advertising cash, $5. Cash sales, $20.25. 
 
 4. Sold f . McPherson f<)r his acceptance at- ?0 days, 150 yds. Broadcloth 
 
 1* foi f^ Repairing Store with check, $8.40. Cash 
 
 sales «55o 1 . oO. 
 
 ^. Bought of J . Young an invoice of goods amounting to $400 Gave in 
 payjueiit cash, $50; an order on H. Foster for $65.50, and my 
 note at 3 months for balance, $— . Cash sales, $18.40. 
 
 7. Sole J. McHardy for his note a5 15 day::, 2 prs. Pants, at $7 ; one 
 Overcoat, $15 ; 50 yds. Flannel, at 40c. Cash sales, $18.60. 
 
BOOK-KEEPING. 
 
 77 
 
 ore due. 1 
 
 8. 
 
 10 days 
 
 
 . Robert 1 
 [t bears 
 
 9. 
 
 ' 1 
 
 la 
 
 is used? 
 No. 10. 
 
 11. 
 
 Cash 
 
 in 
 
 13. 
 
 
 15. 
 
 o-.-^w. 
 
 
 irest at 
 
 16. 
 
 le's ac- / 
 
 
 ptance, 
 ^ owes 
 
 
 
 
 17. 
 
 dated 
 
 
 tterson 
 
 
 
 18. 
 
 Scotch 
 
 20. 
 
 tterson 
 
 
 L Bank 
 
 
 , $15. 
 
 21. 
 
 jice of 
 
 22. 
 
 Paid I 
 
 
 \ 
 
 23. 
 
 deloth 
 
 
 Cash 
 
 24. 
 
 
 27. 
 
 ave in 
 
 
 id, my 
 
 
 
 28. 
 
 ; one ] 
 
 
 ■ 
 
 29. 
 
 Prepaid with check my note favor of H. George as per B.B. ; discount 
 allowed, 50c. Jas. Scott has failed, paying 40c. in the dollar ; my 
 ^ share received in cash, f^^Cash sales, $21.. 30. 
 Discounted W. Stephen's not6 as per B. B. at 6% ; proceeds deposited, 
 $— . Paid for Fuel, cash,- $20, and for Telegram, 50c. ~ ' 
 sales, $20. 
 Lost a $2 bill. Received from John Patterson his note at 2 mos 
 
 full of acct., $f^JaCash sales, $16.50. 
 3old A. J. McKay on one month's credit, 25 yds. Scotch Tweed, atj 
 $1. Paid for Stove for store with check, $25. Paid for Postage 
 and Stationery with cash, $2.50. Cash sales, $28.70. 
 Sold H. P. Smith for his check on Molsons Bank, 3 doz. Fancy Ties, 
 at $4 per doz. ; 4 doz. Linen Collars, at $2.50 per doz., $— . Cash 
 sales, $17.90. 
 14. Presented H. P. Smith's check for payment, but it was dishonored 
 * and returned to him. Discounted John Patterson's note, as per 
 B. B., at the bank ; discount allowed 8% ; proceeds deposited, 
 $— . Cash sales, $23.80. 
 Received from A. J. McKay his check for $15 on acct. Cash sales. 
 
 $14.75. 
 H. P. Smith sent me his note at 10 days, in full of acct. Renewed 
 m^; acceptance due this day favor of H. H. Bunting ; gave a new 
 no. - at 2 mos. to cover face of acceptance and interest at 8^1 on 
 the same. Cash sales, $21.20. 
 Sold A. J. McKay, 10 ready-made Overcoats at $12, $ — . Received 
 in payment a sight draft on Wm. Muir for $100 and cash for 
 balance. Cash sales, $24.30. 
 Bought of "W. H. Sims, with my check, an invoice of goods amounting- 
 
 to $500. Discount off, 5%. Cash sales, $39.96. 
 Discounted M. McPherson's acceptance at the bank at 8%. Proceeds 
 received in cash, $— . Paid for Stationery, $1.50. ° Cash sales, 
 $39.47. ^ 
 
 Sold R. Holmes, on account, 13 yds. Brown Beaver at $2. Paid H. 
 
 Murch for repairs, $6.40 Cash sales, $13.60. 
 Deposited in bank cash $300. Received from A. J. 'McKay his note 
 
 at 2 months in full of account, $-^. Cash sales, $24.45. 
 Bought of M. Wismer, on account, goods invoiced at $130 Cash 
 
 sales, $22.60. 
 Paid for Fuel, cash $5. Cash sale?, $40.10. 
 
 Discounted at 6% W. Milne's acceptance, as per B. B. Proceeds 
 remitted to M. "Wismer, together with cash to close his account. 
 (Wismer allows 5% for prompt payment.) Cash sales, $22. 
 Received cash in full of J. McHardy's note, as per B. B. Cash sales 
 
 $35.50. 
 Sold at auction for cash goods to the amount of .$300= Paid the auc- 
 tioneer with check, $5. 
 
f ! 
 
 :| 
 
 iff 
 
 I: 
 
 78 
 
 BOOK-KEEPING. 
 
 3?' H P'S^'TJ'* "'''*' «3<'- Cash sales, $40. 
 
 Jl. H. P. Smith paid his rote with his check. Cash Iks, $32.60. 
 
 Inventories, taken Dec. SUt. 
 
 Merchandise-Goods remaining unsold «5«5o nft 
 
 Expense— Stove on hand *^„J! XX 
 
 Furniture ?<? ^ 
 
 14 OL* 
 
 Result—Net Gain, $74.10. ^°*^ IssToo 
 
 Lu£r^^^ «^-'-* ^« -P-^'i to wHte out a,, checks, drafts, notes. &o., as he would in actua. 
 
 SET VII.-THE JOURNAL. 
 The forui of Journal used in connection with this set will \.. «^ i 
 practical. It has special columns and bv thi« r^l u .• ^''"'''^ ""^""y 
 
 in posting. All amounts repr^nC the cost o?l"!l "^"""^ u'^V' '^^^^ 
 entered in the column to the^ left fe'sLtalr'^^^^^^^ ^^ 
 
 ponding column to the n'crhf h^r,^ „;^ "c.uieu itzcfse. ihe corres- 
 
 The suL ia thesrcZmn? wife tlT^ JT^."" ''T""*^ "' -'«»• 
 A.1 the other amounts will U^tST^Zil^ wtrtht It iT' '"■ 
 
 thf,r ^?rir;r xs trrs 'r/' coiprs£idru's:fe 
 
 ployed for almrt:*S of busJnl."'^ "'" '"' advantageously em- 
 
 THE CASH BOOK, 
 
 on each side. The one headed '^Mdse » on the Dr i? ^^ "'•^""'^^' 
 ^.mounts of cash sales, and the "SumWes" cdln wTlf "" -^ receive all 
 amounts of cash which come into the bus ness T^ f '^?'r ^" ^'^^'• 
 
 column will be posted to the credifside of the It ^^^^^^^^^ *he "Mdse." 
 each week:* the amounts in fhp mw!.- ^- f ''"'''*"* *^ *^^« e^ 
 
 the "Mdse." column ia carried to the "Sundrio^-'Ll "'','<«'*"»g of 
 
 lasted to the debit side of the Cash Jc^o t f TU^'^eZV^" ^T' '' 
 Will receive all amounts paid out fo> Pnr..««f \, -t^xpense column 
 
 the week will be charX l\~a:rnT& "«fe ttt' "« 1"', 
 
 . Other amounts paid out will appear in the ((\ ^ ^.L ^ i ^-edger. All 
 
 be placed on the debit side Tthei Jl V^ ^ Sundries column, and will 
 
 fon^IS miner. '"' '" '"'^'' "^■^''^ ^*^- »''™8'' "<" l^I-oed iu a 
 
 pu^rt^ite' tttTr z iwTiothi;:' mr T '"• *f '^^^^ ^''^ 
 
 C«J^Boc.^,_™sBo^^^ 
 
 *This may be done senii-inonthly, or monthly, if desired! ~ 
 
 ^- 
 
BOOK-KEEPING. 
 
 79 
 
 JOURNAL— SET YU. 
 ■ December 1, 1886. 
 
 Sl'MPKIBS 
 
 HOSE. 
 
 520 
 
 Of. 
 
 96 
 
 (13 
 
 50 
 30 
 
 90 
 
 800 
 
 136 
 
 60 
 
 380 
 
 200 
 
 1000 
 
 —r~ ^"* ^^** (^<^P commenced the Dry Oooda 
 business, investing the following Resources and 
 Liabihties : — 
 
 Sundries jTo ( ....^p.'V*..?.^? .^^'■«= ) 
 
 Effects Invested : 
 
 Mdse. 
 Bills Rec. 
 
 Int. ^ Bis. 
 
 E. Foster 
 Jas. Scott 
 
 On hand. 
 
 Note against W. Stephens 
 as per B. B. W. Milne's 
 acceptance as per B. B 
 
 Interest accrued on W. 
 Stephen^ 8 note as per B. B. . 
 
 He owes me on acct. 
 
 (( 
 
 { ..^^^.^^.^^^. ) To Sundries. 
 Liabilities Assumed: 
 
 Bills Payable. 
 
 Note favor H. George oo 
 per B. B, 
 
 John Patterson. 
 
 I owe him on acct. 
 
 John Patterson To Mdse. 
 
 Sold i?. Purvis for his order on John 
 Patterson, — 
 
 ■ 3 pes. Linen, 50 yds each % $ 75 
 16 yds. Scotch Tweed @ 1.50 
 
 Mdse. To Bills Payable. 
 
 Bot. goods as per invoice of H. H. 
 Bunting on my acceptance as /jer 
 B. B, 
 
 4 — 
 
 Bills Rec. To Mdse. 
 
 Sold M. Mcpherson for Ms accept- 
 ance as per B. B., — 
 160 yds. Broadcloth @ $2.40 
 
 . Amounts forward. 
 
 136 
 
 360 
 
 496 
 
 1416 
 
 43 
 
 50 
 
 60 
 
 36 
 
 50 
 
 90 
 
 wc 
 
 1712 
 
 I 
 
 ss 
 
■»#--^ ynlu]f wIhBIiWi^^ ^ . 
 
 80 
 
 BOOK-KEEPING* 
 
 'ii 
 
 ^ 
 
 JDr. 
 
 Cash. 
 
 1886 I »^ 
 
 Z)cc. 
 
 1 
 
 << 
 
 ?? 
 
 << 
 
 5 
 
 (( 
 
 4 
 
 ™e- -Safes <At« day 
 
 " II II 
 
 J/ifoe. Cr.— Sales for week 
 Umh Dr.— Receipts for week 
 
 balance . 
 
 CASH BOOK 
 
 h 
 
 Ii ' 
 
 Bills 
 
 When 
 Rec'd. 
 
 Drawer or 
 Indorser. 
 
 Drawee or 
 Maker. 
 
 Dec. 
 II 
 
 In Whose 
 Favor. 
 
 For What 
 Received. 
 
 W. Stephen 
 y/. Milne 
 
 Myself 
 
 Investment 
 II 
 
 BILL BOOK 
 
 Where 
 Payable. 
 
 Date. 
 
 Molsons Bk. 
 <i 
 
 Nov. 1, '86 
 Sept. 8, '86 
 
 Time 
 Run. 
 
 70 (h. 
 4 mi. 
 
 Bills 
 
 When 
 Given, 
 
 Drawer or 
 Indorser. 
 
 Aiig. 
 
 Drawee or 
 Maker. 
 
 U 
 
 Myself 
 
 In Whose 
 Favor. 
 
 H.Giiorge 
 
 For What 
 Given. 
 
 Where 
 Payable. 
 
 Date. 
 
 My Ojgke Aug. 24, '86 
 
 Time 
 
 to 
 
 Run, 
 
 4 ms. 
 
 

 Time 
 
 
 t; 
 
 
 Run. 
 
 S6 
 
 70 ds. 
 
 W 
 
 4 niH. 
 
 
 , 
 
 -SET VII. 
 
 BOOK-KEEPING. 
 
 Cash. 
 
 81 
 
 Cr. 
 
 1886 
 
 Dec. 
 
 << 
 
 Expeme Stationery A Pontaij- 
 
 Bk. of Commerce Deposited 
 
 Expense Office Furniture '. 
 
 " Inmirance de Advertishuj 
 
 Expense Dr. — Outlay for expenses 
 
 Cash Cr.—Dish. for week 
 
 Balance 
 
 KXPBN8B. 
 
 15 
 15 
 
 31 
 
 20 
 
 8UNDRIR8 
 
 400 
 
 31 
 
 431 
 
 20 
 P.O 
 
 TOTAL. 
 
 431 
 
 140 
 
 571 
 
 20 
 15 
 
 35 
 
 -SET vn.* 
 
 Receivable. 
 
 
 
 
 
 When Due. 
 
 
 
 
 
 
 Interest. 
 
 
 
 Pay meets. 
 
 ). 
 
 When and How 
 Disposed of. 
 
 Year 
 
 i 
 
 13 
 11 
 
 i 
 
 i 
 
 
 i 
 
 a 
 
 \ 
 
 1 
 
 1 
 
 
 8 
 
 > 
 
 J 
 
 — 
 
 Rate. 
 
 Sum. 
 
 Amount- 
 
 Date. 
 
 Sun 
 
 1887 
 1887 
 
 
 
 400 
 120 
 
 
 
 
 
 
 
 Payable. 
 
 When Due. 
 
 
 Interest. 
 
 
 
 Payments. 
 
 When and How 
 Retired. 
 
 Year 
 
 
 I 
 
 
 1 
 
 >, 
 rt 
 
 S 
 
 ■ Hi 
 
 S 
 
 
 
 
 so 
 
 I 
 
 1 u 
 
 
 
 1 
 
 27 
 
 Rate. 
 
 Sum. 
 
 Amount. 
 
 Date. 
 
 Sum. 
 
 1886 
 
 
 
 
 
 
 
 60 
 
 
 
 
 
 
 
 ^No "'the fle^Hn!ZV,t%t]lt T^^ °*„**if '"^"*^ ^"'^ P'**'^'^ ^* *'"' *«P- ^^ t^e column headed 
 of the note. mdjcated m small figures or letters above the figures expressing the number 
 
82 
 
 UOOK-KEEPINC. 
 
 lifi 
 
 It 4 
 
 'i i 
 
 ff 
 
 ' IB! 
 
 SET VIIL-EXPLANATIONS. 
 The only new feature of this set is the inti-cxluutiou of the Sales Book. 
 This bcM)k being used, the Sales column in the Journal will be dispensed 
 with, as all the amounts which would be placed in it will be found in the; 
 Sales Jiook. The amounts ioi)resentinf,' the cost of floods purchased }nay 
 be transferred directly fiom the Invoice* Book to the J.«'dger, or a column 
 for such amounts may be in the Journal. In either case the total for the 
 month should bo posted to the Dr. .si<le of the Merchandise Account. The 
 Cash Book will be the same as that of the preceding set. 
 
 SALES BOOK 
 
 All sales of merchandise are recorded in this book. When goods are 
 sold for which full payment in cash is mail, , it is not necessary to enter the 
 items in this book, as the amount can be carried dirtjctly to the "ndse." 
 colunui (»n the Dr. side of the Cash Jiook. When part payment for goods 
 sold is received in cash, although the items siumld be given in the Sales 
 liook, the amount of cnsh received should vot be extended into the money 
 colunni, but transferred to the ":M(lse." cohnnn of the Cash Book, only 
 the part paid otherwise than in cash being curied to the money column. 
 
 At the end of the month the amount of the Mdse. column of the Cash 
 Book is transferred to the outside column of this book, the footinor of 
 which will then shew the total sales. The total is posted to the Cr. side 
 of the Merchjuidise Account in the Ledger. By examining the form given 
 the student will see at once how to post the debits. 
 
 SET VIII.-BOOT AND SHOE BUSINESS. 
 Books used,— Journal, Cash Book, Sales Book, Bill Book, and Ledger. 
 
 January S, 18S7. 
 
 Connnenced this day the Boot and Shoe Business, investing cash .f 2,000. 
 Bought of Smith «fe Co., Toronto, goods invoiced at 1 1,200. Paid the 
 
 same with cash. Paid freight, $17.50 ; drayage, 50c.* 
 Employed A. Bolger as clerk at |.'iO per month. 
 Pai<i cash for Fuel, $10, and for a set of books for store, $6. 
 
 January 4- 
 Deposited in the Bank of Commerce cash $500. 
 
 Sold J. McEachern 3 prs. Men's Kip Boots at $4.50; 2 prs. Men's Gaiters 
 at $3 ; 4 prs. Women's French Kid Button Boots at $4.50 ; 3 prs. 
 Women's Slippers at $1.20; 4 prs. Boys' Plain Rubber Overshoes at 
 60c. Received in payment A. Tiivlor's acceptance at 6 mos., dated 
 Sept. 1, 1886. O-^^^^A^-^r r O ^ 
 
 Cash sales, $25.30. 
 
 » All amounts paid for freight and drayage on gooda purchaged should be entered on the Dr. side 
 
 If the dealer wishes to know the amount he pays for freight, for instance, durinjr a tenn of busi- 
 nesa he will open a i reight account and debit it with all sums uaid for the tmnsportation of troods pur- 
 chased. This account must be closed into Mdse. account before the books are balanced 
 
 '1 
 
 ;*W^A 
 
BOOK-KEEPIN(;. 
 
 8? 
 
 he Dr. side 
 
 January 6. ,, 
 
 Hold William L(hh1s, oh account, 2 prs. Men's French Calf Bals, at $4.50: 
 
 1 pr. Women's JJutt. Calf Boots -it $2.70. - fflO 
 Discounted at bank A. Taylor's acceptance at G/,and deposited the proceeds. 
 Paid for Coal Oil $IA0. 
 Cash sales, $27.20. 
 
 January C. 
 llought of Warner it Sons, London, an invoice of goods amounting to 
 
 .$200. CJave in payment a draft on the Bank of Conmuirce for that 
 
 amount, purchased with cash. [Banks cliarge j^% for issuing drafts, 
 
 therefore a draft for $200 will cost $200.25.] Paid freight, $.S,50. 
 Received from William Leeds, on account, cash ^rt. 
 Cash sales, $32.85. 
 
 January 7. 
 Sold W. H. Martin 3 prs. Men's Imitation Sandals at 05c.; \ prs. Women's 
 
 Buff Bals. at $1.40; 5 prs. Women's Felt Slippers jit $1.20; 2 prs. 
 
 Boys' Heavy Boots at $2.50j 6 prs. Boys' Tie Shoes at $1.80. 
 
 Received in paynunit his sight /li'a-ft on J. Sloan for $10, and his note 
 
 at 10 days for balance. 
 Paid for Postage and Stationery $2.30 Avith cash. 
 Uought of Warner & Sons, London, goods invoiced at $146. Accept(«l 
 
 their draft at 30 days for that amount. 
 Cash sales, $21.45. 
 
 . • January 8. 
 
 Sold K. McKendrick 3 prs. Children's Butt. Boots at $1,10 ; 4 prs. Misses 
 
 Goat Lace Boots at $1.25; 2 prs. Women's Polished Calf ]}oots at 
 
 $2.50. Beceived in payment an order on B. Mills for $10; the 
 
 balance to remain on account. 
 
 Received from Wm. Leeds his note at 10 days in full of account, $ . 
 
 Sola Benjamin Hill, on account, 3 prs. Men's Stoga Boots at $1.80. 
 Paid for Advertising, $2.50; Telegram, 25c. 
 Cash sales, $40.20. . 
 
 January 10. *» 
 
 Borrowed from C. Cameron a $5 bill. 
 
 Prepaid my acceptance favor Warner and S<ms at 6V with my check. 
 Sold to Jas. Mooney 43 prs. Men's Calf Sewed Boots at $5 ; 50 prs. Woman's 
 
 Polished C? ^ f Boots at $2. Received in payment his note at 1 days, $ , 
 Cash sales, $39.50. 
 Discounte<i at bank Wm. Leed's note my favor. Discount allowed, 25c. 
 
 Deposited the proceeds. 
 Paid C. Cameron the amount borrowed, $5. 
 
 January 11. 
 
 Deposited in the Bank of Commerce cash $200. 
 Cash sales, $50.70. 
 
 t' 
 
 I 
 
 1 
 
84 
 
 BOOK-KEEPING. 
 
 tHi 
 
 iiiii 
 
 ti 
 
 W : 
 
 i 
 
 January 12. 
 
 Bought of Elder & Co., Hamilton, goods invoiced at |300. Accepted their 
 
 T> iv>^!? ^V^. ^^^^ ^'^^^ ^^^ ^^^^- Paid freight, $5, Vith check. 
 11. Mills paid the order on him received on the 8th inst. with his check. 
 Cash sales, $29.60. 
 
 January 13, 
 
 Sold W. Manning 30 prs. Men's Calf Sewed Boots at |5. Received in 
 
 payment his note at 10 days. 
 Cash sales, $10.70. 
 
 January 14> 
 Sold R. Mills, on account, 2 prs. Men's Stoga Boots at $3; 1 pr. Men's 
 
 J^rench Calf Boots at $4.50 ; 3 prs. Misses Prunella Bals. at $1. 
 ii'aid S. James for cleaning store, cash $1.50. 
 Cash sales, $16.28. 
 
 January 15. 
 Paid clerk's half -month's salary with check, $15. 
 SoM H. Ilughes 25 prs. Women's Buff Bals. at $1.50; 50 prs. Misses 
 
 Butt. Bals. at $1.20. Received in payment his sight draft on Francis 
 
 Bawden, which is honored. 
 Cash sales, $47.50 
 
 January 17. 
 
 Sold Henry Brown 2 prs. Men's Carpet Slippers at $1.25; 4 prs, Boys' 
 Kip Boots at $3.50; 2 prs. Women's Pebbled Bals. at $1.30. Re- 
 ceived in payment A. Embree's acceptance due March 4, 1887. 
 
 Lost from my pocket a 50c. piece. 
 
 Received from R. Mills his note at 30 days in full of account. $— . 
 
 Cash sales, $28.80. 
 
 January 18. 
 
 Sold H. J. Geoige, Dundas, 100 prs. Men's French Calf Sewed Bor:.i at 
 $5. Received in payment a draft on the Bank of Commerce for the 
 amount, which I deposited. 
 
 Remitted Elder & Co. on'account a bank draft for $100, which I pur- 
 chased with cash.* 
 
 Paid cash for Coal Oil, $4 ; for Writing Desk, $^0. 
 
 Cash sales, $35.20. 
 
 January 19. 
 
 Bought of^Hurdon & Graham, Guelph, goods invoiced at $550. Discount 
 off 5%. Remitted them my note at 70 days, bearing interest at 
 5%, for $200, and my check for balance. 
 
 Cash sales, $24.35 
 
 January 20. 
 
 Prepaid my acceptance favor of Elder & Co. with check. Discount at 57. 
 Cash sales, $37.60. ° 
 
 *A8 a rule, banks charge 25c. for issuing drafts not exceeding 
 
BOOK-KEEPING. 
 
 85 
 
 
 
 January 21. ^ /\, ^^ 
 Received cash for W. H. Martin's note, $Jv«'^^ 
 Jas. Mooney has renewed his note. Received in part payment cash $100. 
 
 and a new note at 30 days for $215, bearing interest at 57. 
 Cash sales, $36.40. ^° 
 
 January 22. 
 Received from KMcKendrick casl^ in full of account. Deposited in 
 
 OotlXK C8«Sll. «|pOOv, 
 
 Cash sales, $48.75. 
 
 Jamuary 2^. 
 
 ^^^^f^T^^ """^^ ^^^'''' ""^ Hurdon & Graham with check. Discount at 67 
 [When a note bears interest its amount when due is discounted for 
 the unexpired time.] 
 
 Cash sales, $25.20. 
 
 January 25. 
 Paid Elder &, Co. cash on account, $30. 
 Cash sales, $19,40. 
 
 January 26. , 
 
 Sold R. ]Vi:ils, on account, 1 pr. Men's Stoga Boohs at $3.60; 3 prs- 
 
 Misses Poished Calf Bals. at $1.75; 1 pr. Men's Plain Buckle Over. 
 
 shoes at $1.75, $ — . 
 Paid cash for Office Furniture, $14.50. 
 Cash sales, $23.30. 
 
 January 27. 
 Discounted A Embree's acceptance. Face of acceptance, $— . Discount 
 
 allowed, $0.35. Proceeds deposited, $— . 
 Cash sales, $15.40. 
 
 January 2S. 
 
 Gave Elder & Co. my note at one month in full of account, $— 
 Cash sales, $21.96. 
 
 January 29. 
 
 Sold H. Corbett, on account, 1 pr. Men's Calf Sewed Boots at $4.60. 
 Cash sales, $31.20. 
 
 January 31. 
 Paid clerk's half month's salary with check, $15, 
 Sold by auction, goods for cash, $400 ; paid auctioneer $5. 
 
 Inventories. j.) 
 
 Mdse. — Goods on hand «206 87 
 
 Expense.— Writing Desk and other office furniture'. ",'.!'" 31 
 Int. and Dis. —Interest accnied on Jas. Mooney's note .... 29 
 
 Result—Net Gain, $41.01 ; Net Worth, $2,041.01. 
 
 I 
 
ilV' 
 
 66 
 
 BOOK-KEEPING. 
 
 ■Ml 
 
 •i ,, 
 
 Hi 
 
 i ii 
 
 
 SALBS BOOK-SET "VIH. 
 , January ^, 1887. 
 
 J. McEachern. 
 
 3 pra. Men's Kip Bootn (o} $4-50 
 
 a «« II Cfaitera ... "3 
 
 4 " Women's Fr. Kid Butt. ' Boots '.'..'. " 4M 
 
 3 " '• Slippers " !.:.'(> 
 
 4 " Boy's Plain Huh. O. S " r,o 
 
 Bills lieOt •^' Taylor's acceptance at G mos. 
 
 William Leeds. 
 
 2prs. Men's French Bals @ $4.50 
 
 1 pr. Women's Butt. Calf " ^.70 
 
 W. H. Martin. 
 
 3 prs. Men's Im. SnndaU (^ ^ 65 
 
 4 " Women's Buf Bals " I.40 
 
 5 " " Felt Slippers " 1.'20 
 
 2 " Boy's Heavy Boots " !^.50 
 
 3 " " Tie Shoes " l.SO 
 
 Cash.* 
 Bills liec. 
 
 Sight draft on J. Sloan, $tO . 
 Martin's note at 10 ds 
 
 _ s 
 
 K. McKendriclc 
 
 3 prs. Children's Butt. Boots (u, $1.10 
 
 4 " Misses' Ooat Lace Boots " 1.35 
 
 2 " Wo'tnen's Pol. Calf " 2.60 
 
 R. MillS' Order on him 
 
 Benjamin Hill 
 
 Sjyrs. Men's Stoga Boots @ $1.80 
 
 10 ^ 
 
 James Mooney. 
 
 43 pi's. MeiCs Sewed Boots (oj $5 
 
 50 " Women's Polished Calf @ ^ 
 
 Bills Bee. Note atlOds 
 
 .// 
 
 W. Manning. 
 
 30 prs. Men's Calf Sewed Boots 
 Bills Bee. Note atWds 
 
 IS 
 
 50 
 
 6 
 
 
 IS 
 
 
 i 
 
 60 
 
 ! 
 i 
 
 40 
 
 1 
 
 
 2 
 
 70 
 
 1 
 
 95 
 
 5 
 
 GO 
 
 6 
 
 
 5 
 
 
 5 
 
 \ 
 
 40 
 
 1 
 
 1 
 
 J0\ 
 
 215 
 100 
 
 43 
 11 
 
 3 
 
 10 
 
 315 
 
 150 
 
 70 
 
 05 
 
 .10 
 
 'tO 
 
 *Thi8 amount is not extended to the money column, because it will be transferred to tlie Cash 
 Book, and therefore find its way to the Ledger as part of the total sales for the month. 
 
 
BOOK-KBBPINO. 
 
 87 
 
 \ 
 
 CHAr^EE VI. 
 
 * 
 
 SHIPMENTS AND CONSIGNMENTS. 
 
 It occasionally hap ,,g that a (healer has good« in his possession for 
 whu-h he cannot !ind u eady sale ;it his place of business, but for which 
 there is a good market somewhere else. It will, in such a case, evidently 
 be to his advantage to send these goods where they are in demand, and to 
 employ a person d. Mig business there to offer them for sale. As such 
 goocls, though shipped, are still ovnM by the person who sent them, it is 
 obvious that he cannot treat thei. propeily an iiich he has sold. It is 
 
 thei-etore, necessary to use a special term to represent such. The r'^pre- 
 seAative titles "Shipment" and "Adventure" ar. the ones commcmly 
 eftD ployed. 
 
 SHIPMENTS. 
 
 Debit the Shipment for the value 
 ■pi the property represented, and for 
 i-'lUl expenses. 
 
 Credit the Shipment for the net 
 proceeds. 
 
 Su^StaSlreT'^' '" '^' "'• '^^' ^'^'^ *^^ ^°<"^^ "'' «»^>PP«^' '^"d °" «>« Cr. side when the Accoi.nt 
 
 Th;>perso.i sending goods to be sold by another for him is termed the 
 Shipper or Consignor. 
 
 If the sliipp-v wishes to close his books before an Acct. Sales is ren- 
 dered he will cose " % Ml. Inventory," and carry the amount to the 
 Dr. of Balance Acct. 
 
 If an Acct. Sales has been rendered, and if the proper entry on receipt 
 ot It has been made, the Dr. side shews the cost and the Cr. side the pro- 
 ceeds of the Shipment; consequently, the account will close into Loss and 
 ham. 
 
 Different Shipments are distinguished one from another bv nuniberinir fh^m nn^ w „**.„„i • i.i 
 name of the seller, or of his place of business to each Tl^^ thl^ sCme^ W mL^ '^v '"F "? 
 
 for instance, might be styled "Shipment to Maaon, No. 3?" s^^ipment sent to W. Mason, Montreal. 
 
 The person to whom the goods are sent for sale is termed the Agent 
 or Consignee. 
 
 When the Agent receives the goods he takes them in charge, payincr 
 freight, drayage, &c., if required. It may also be necessary for him tS 
 
^. 
 
 ^^«>o. 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 C^ 
 
 m 
 
 
 4. 
 
 
 m 
 
 
 1.0 
 
 I.I 
 
 vs. 1110 
 
 Ui 
 
 
 1.8 
 
 \M IIIIU 1111.6 
 
 
 Photographic 
 
 Sciencos 
 Corporation 
 
 33 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) 872-4503 
 
^ #3 ^ M 
 
 Wa 
 
 H 
 
 
mmm 
 
 ■H 
 
 88 
 
 Mi h 
 
 BOOK-KEEPING. 
 
 I'8< 
 
 fiii 
 
 V 
 
 ■i 
 
 m 
 
 store them away for a time, and to have them insured. Although the 
 agent may do all this he does not become the owner ; he merely assumes 
 the management of them until they are sold, or ordered bj' the Consignor to 
 be re-shipped. It will be clear, therefore, to the student who understands 
 what the Mdse. Acct. represents, that it will be necessary to open a 
 separate account to represent property to be sold on the account and risk 
 of another. The heading usually employed is " Consignment," 
 
 CONSIGNMENTS. 
 
 Credit the Consignment for the 
 proceeds of sales. 
 
 Debit the Consignment for all 
 values paid on account of it, for the 
 amount of commission on the sales, 
 and for the net proceeds due the 
 shipper. 
 
 If the Shipper is not paid when the Acct. Sales is rendered his personal 
 account must be credited ; but if paid, the account or accounts representing 
 whatever is remitted must be credited. 
 
 When a large commission business is carried on there will likely be a 
 number of consignments jmrtly disposed of at the time of closing the 
 Ledger. It would be improper to render an Acct. Sales of the goods sold 
 unless such were called for, and, therefore, it would be better not to debit 
 the consignment for the commission earned on the goods parted with. But 
 this commission represents value, and must be taken into consideration. 
 The simplest and most -logical method is to treat such consignments as 
 personal accounts, closing them as they stand into Balance. Enter the 
 commission on the sales effected in total on the Cr. side of the Commission 
 account " By Bal. Inventory^' and carry to the Dr. side of Balance. As 
 manifestly ought to be the case, this amount is placed among the Re- 
 sources, while the accounts representing the property partly sold are left 
 undisturbed. 
 
 When the new Commission account is opened, this balance will be 
 brougi.t down to the Dr. side of it. As the consignments are disposed of 
 the to oal commission arising from each is entered on the Cr. side of the 
 Coi amission Acct. The bringing down of the balance from the old account 
 >vill obviously prevent the counting twice of that part of the commission 
 that was before credited. 
 
 If it i8 not important to know the exact gain or loss for the term of business, the commissions on 
 consignments partly disposed of may be disregarded at the time of closing. 
 
 Different Consignments are distinguished from one another by numbering them and by making use 
 or the names of the Shippers. The second consignment received from William Wilson, for instance, 
 might be styled, " Wilson's Consignment, No. 2." 
 
 W. H. Smith, Guelph, Ont., ships to W. Mason, Montreal, 40 bbls. Extra 
 Flour, at $4 per bbl, to be sold on the account and risk of the Shipper, 
 who pays $10 shipping expenses with cash. 
 
 ii 
 
BOOK-KEEPING. 
 
 r assumes 
 
 imissions on 
 
 89 
 
 On making the shipment Smith will send Mason a letter advising him 
 of the same, and he will enclose the invoice of the goods shipped. 
 
 (Advice of Shipment sent by Smith.) 
 
 W. M.SOX, Esq., ^^^™' ^*^*- 1' 1886. 
 
 Montreal, Que. 
 
 Dear Sir,-I have, this day, forwarded to you Flour, as per Invoice 
 enclosed, to be sold on my account. ^ -invoice 
 
 Hoping that a profitable sale may be effected at an early date, I remain, 
 
 Yours respectfully, 
 
 W. H. SMITH. 
 (Invoice enclosed.) 
 
 1886, to W. Mason, Montreal, to he sold on comrrlission 
 
 40 hhls. Extra Flour at $4. 
 
 E. 6eO.E. 
 
 Ouelph, Oct. 1, 1886. 
 
 W. H, SMITH, 
 
 Comignor. 
 
 160 
 
 160] 
 
 (Mason's Acknowledgment on Receipt of the Consignment.) 
 W. H. Smith, Esq., Montreal, Oct. 5, 1886. 
 
 Guelph, Ont. 
 
 As prices are good, I shall put it on the market immediately. * 
 
 Yours truly, 
 
 W. MASON. 
 
 sprid Tl.?' w "^^'P^^^g «^ *1^« consignment, will, as soon as convenient 
 send the shipper a statement shewing the amounts received for th^Ss 
 
 "att'ntt^^^^^^^ 'r^ ^' '^^^^'*' '"^^^'^ commission, I SuTl 
 
 8i;at€ment is termed an Account Sales. 
 
90 
 
 HOOK-KBBPINO. 
 
 (The Account Sales rendered hy Mason.) 
 
 Account Sales of 40 hhh. Kvtra Flour, received per O. T. B., 
 Oct. 6, 1886', from ir. H. Smith, Guelph, Out, to he sohl 
 on commission. 
 
 1SS6 
 
 
 Oct. 
 
 'V 
 
 Oct. 
 
 4t 
 
 5 
 S 
 
 
 
 Sales. 
 
 Sold for Ciuth, 
 
 40 hhln. Extra Flour, at ^il 
 
 Charges. 
 
 Freight 
 
 Commission, sy^ on Sales 
 
 W. H. ^■mith^s net proceeds, placed to his credit 
 
 E.diO.E. W. MA SON, 
 
 Consiyuce. 
 Montreal, Oct. 8th, JSSe. 
 
 7 
 
 SO 
 
 i^JfO 
 
 37 
 
 i'OS 
 
 JO 
 
 so 
 
 TRANSACTIONS. 
 
 EXAMPLES. 
 
 JOURNAL. 
 
 1. Student shipped to Dick- 
 son for sale on comniissioii 
 1200 bbls. Flour, which he 
 bought of Jas. Keene at $5 per 
 bbl., giving in payment his own 
 note at 10 days for $1200, 
 Keene's note, then due, for 
 $1000, and a check on the 
 Molson's Bank for balance. 
 Student paid shipping expenses, 
 |50, with cash. 
 
 2. Dickson, on reciept of the 
 Flour, paid freight, $00, with 
 his sight draft on J. B. Wilson, 
 and drayage, $10, with his 
 check on Merchants' Bank. 
 
 3. At the request of Student 
 Dickson purchased 800 bbls. 
 Flour at $4.50, for which he 
 paid cash, and added the same 
 to the consignment. He paid 
 freight, $25, and drayage, $5, 
 with his check on Merchants' 
 Bank. 
 
 (Student's entry. ) 
 
 Shlp't to Dickson Dr.... 
 
 To BUls Paijahle . . 
 
 " Jillls lieceirahle 
 
 '' Mot sons Hank. 
 
 " Cash 
 
 (Dickson's entry.) 
 
 Student's Consr/t •■ J)r 
 
 To J. B. Wilson .... 
 " Merchants' Bank 
 
 (Dickson's entry.) 
 
 Student's Constft J)r 
 
 To Cash 
 
 " Merchants^ Bank 
 
 (JOott 
 
 70 
 
 36^0 
 
 IWO 
 
 1000 
 
 3S00 
 
 50 
 
 00 
 10 
 
 S600 
 
 r 
 
TRANSACTIONS. 
 
 IIOOK-KKKPINO. 
 aXAMPLBB. -(Continued. ) 
 
 tM 
 
 JOUHNAI,. 
 
 4. Dickson sold tho whole 
 consignment (loss 10 bbls. datn- 
 Hged) to Rohorfc Fullorton at 
 $5.50, and nnuMvod inpaymont 
 his own note for $2000, then 
 duo, on which hero had uc 
 cruod l5!150 interest; Fulhir- 
 t(m'H sight (h-aft on JohnCainp- 
 hellforllL'OO, anda draft on 
 tho Bank of Montreal for the 
 balance. 
 
 5. Pickson charged 2c. ])ei' 
 bbl. for buying, ik-. per bM. f<u 
 Kelliiig, $20 for storages, $1 5 for 
 (•(>()p(>rage, $10 for insurance, 
 and i-(Mid(!red an Account Snles, 
 remitting Fullerton's Hight 
 diaft as above, jind a draft on 
 ilie M(!rchants' jik., pun^liased 
 with cash, to settle in full with 
 Mie shipper. 
 
 (Dickson'd entry ) 
 
 IUUh payable l)r 
 
 lut. ,(• 7>»V. " ....." 
 
 Canh «• . . ' 
 
 To Stndaif'H CotiHy't 
 
 
 (T)ick8on'8 ontry. ) 
 SlmlmfH Coiinjf't J)r. 
 To ('inmntHHini. . . 
 " SUmuj,'. 
 
 " CoofliftUJC. . . , 
 
 " JiiMiinwrn , , 
 " 6'Wi 
 
 io94rt 
 
 (StU(>'iit'8 oiiti'y.) 
 (ydfih /),■ . . , 
 
 Jnt. tk Din. " . . . . 
 
 To S/np'f. /„ iyrhun 
 
 ;/,;> 
 
 in 
 
 JO 
 
 7m 
 
 7/ la 
 
 :i(i 
 
 70 
 
 80 
 
 7/Jf \: 
 
 '10 
 
 EXERCISE 1. 
 
 a^i <it> i,>j(JU. 
 2. Smith, on receivitig tho goods, piid $10 fnuglit wlih oisli 
 .'J. Smith sold the whole c(»nsigmn(rit for $1,,S00, and received in i,Hvn.en< 
 
 a check on tho Molsons ]?ank. ^ "^ 
 
 1. Smith ch.'ug(,s 3% (!oin. for ."lling, n,nd rcnd(>rs an Acct. S/des remirtir.L' 
 a check on tho Bank ot Connnerco to cover net proticcds. 
 {(>) Give student's Journal entries, 
 
 {h) Write student's Loiter to Smith on making the shii)m('nt. 
 (c) (live Smith's Journal entries. 
 
 {<!) Open Smith's Ledger. Slu^w how to (riose the accts. 
 
 EXERCISE II. 
 
 1. i:^}^^^'^^^^ shipped to A. Megraw, to be s..l<l on co.nmission o ooo 
 
 bush. Fall Wheat, at $1 per bush. Paid shipping expe.,scs,*''$40 
 with his Note at (50 days. ^ ' 
 
 2. Megraw, on receiving the consignment, p,iid $10 for unlo/wling with Ids 
 
 note at 10 days, and $15 for drayage with cash. 
 
 
 > y= 
 
ii 
 
 irl 
 
 I 
 
 Ml 
 
 92 
 
 BOOK-KRKPINO 
 
 Ii 
 
 :\. Mograw sold tho consignment to F. Corbott for $2,600, and rocoive<l in 
 payment hia own note for $200, A. IJluo'a noto for $300, ai\ onler 
 on Janios lirown for $400, a chcok on tho Morohanta' Bank for 
 $300, tho balance to i-oniain on aoeount. 
 
 4. Megraw iXMidcrod an Aoct. Sales, charging 2% for connnission, \% for 
 inaui'anco and $30 for storage. 
 
 (a) Give ftudent's Journal entries. 
 (h) Maxo out the Acct. Sales (4). 
 (r) Give Megraw'a Journal. 
 {(l) Classify the accounts in Megraw's Lodg^ir. 
 
 EiXBROISB III. 
 
 3. Smith shipped to ("*'!!*.^.".''"..?**!!lf::) to bo sold on the acct. and risk of the 
 
 Shipper, 100 bbls. Extra Flour at $5 : 400 bush. Fall Wheat at $1, 
 and paid shipping expenses, $30, with his sight draft on C. 
 Dickson. 
 
 2. (?*\'.*«."*'!.!!'.S1).';.-), on n?ceipb cf tho consigi\ment, paid freight, $40, with 
 ilia draft at 60 days on A. Campbell; charges for unloading, $15, 
 with his check on Bank of Commei'ce; and drayage, $10, with 
 his oixler on \Vm. Muir. 
 
 3 ^.stiuienfsNftiuc,^ ^^^\^\ ^j^, l^lour to Jamos Johnson at $6.50 per bbl., and 
 
 received in payment a sight draft on H. A. May for $20 : » draft at 
 30 days on W. Milne for $20 ; and chock on tho Molsons Bjuik for 
 balance. 
 
 4. (?V,'^*!l!;?.?:'.:*!!}.':) sold the Wheat to C. Kerr at 90c., and received in pay* 
 
 ment his note for $.'^»0, and a check on Bank of Connnerco for balance. 
 ."). (^»»'>^:!!?.'.*.?!'.'»:'."5.•) charged 2A% commission for selling, $15 for storage, and 
 rendered on Acct-^Sales, remitting a Bill of Exchange bought at 
 1% pW'inium with not proceeds. 
 
 {a) Give student's Journal entries. 
 
 (b) Give May's entry and also Milne's entry (3). 
 
 (c) AVrito all the student's correspondence, with the Consignor in the 
 oinler of its occurrence. 
 
 (d) Gi\ e Smith's Journal. 
 
 EXERCISE IV. 
 
 1. Bought of B. Mills, on 3 months' credit, goods valued at $200. Paid 
 
 freight on the same in cash, $4. 
 
 2. Rec^ivetl Wm. Henderson's note at 3 months in payment of account, 
 
 $50. 
 
 3. Received cash for the sale of J. Scott's goods, $40. 
 
 4. Discounted for H. Hill his note (No. 4) @ 4 months, for $5C0 ; Dis- 
 
 count off, $10. Paid Net Proceeds ^ in goods from store and ^ in 
 goods from J. Scott's Consignment. 
 
 feJC J- 
 
UOOK-KKEPINO. 
 
 03 
 
 7. Lont J. Hmith cash, $n. ^^ ^ * 
 
 «. Fouiul in till a cmntorfrit $10 bill. 
 
 y. Jioughfc Hfc an auction wilo Mdw. for cuhI. ilK'>on q n u : ,. , 
 
 10. Receivod cn.l, from /Hri;i.?|l'(;): " ^"'"''"'' 
 («) (live tho .Touniiil eiitri(«. 
 
 fl w,"?."'", ''""""•""''^"ti"" •" Taylor & Co. i„ No. fl. 
 ^^ (,•) Wl.nt .» tho object „£ koo,,i„« „ Flight Account » How ,ho„l,l it 
 
 ^^(-0 Doc» tran^ction No. 6 affect the Flight Account? Explain 
 
 BXBR0I8B V. 
 
 1. Received from Maasov & Co fo.- h.iIo «« +i • 
 
 „ , K-j- .."«"« I mor Pai,T tw.tt'.'ia'rro'' "" "■™'"'' "■ 
 
 2. Accepted MasHcv <fe Co'a di<«ff «,. »u • / . f "• 
 
 for 1400. ^ " "'' "^'"« *" *^"' '^'">^« con«ignnient, 
 
 .T Wold E. H, Parks, on liis note at months, indorsed l.v U T * 
 
 ^ merchandise from Massey .fe Co.'s Consigun^t So ''"' 
 
 4. Shipped to H. Davidson A Co. 400 bush. M Wheat -It iftl 00 .na 
 
 bush. .Spring Wheat at 90c., for their ace ounT u 1 it fl ? ' f ^ 
 
 P;.d ^ht and other chaise, with TZ^U^tXla^lL al^OO 
 
 6. Shipped to M. rSltti n 300^^^^^^^ 
 
 Macphers«n'« Consignment, No I P dT^J 1 '".5^"^"^« * 
 
 /. Paid W Huston's sight draft on me for |500 in favor of Tohn Dn.] 
 with gomls from store, $300; gooda from AJsev /po' n "^'''' 
 ment, $100; check for balance! ^ ^ ^'"' Consign- 
 
 (a) Journalize the foregoing. 
 
 (h) Draw the noto for No. 3. 
 
 (c) Make the sight draft for No. 7. 
 
 (d) Make out the invoice for No. 4, 
 
 5. 
 
94 
 
 BOOK-KEKPINO. 
 
 lii 
 
 SBT IX.— GRAIN AND COMMISSION BUSINESS. 
 Books nml — Journal^ Ledger^ Cash Ihnk, and Bill Book^ the last aa an 
 
 auxi/iari/. 
 
 N..\-. 1, ISSfi.- ( ?*."•'•'"»■•"''""=: ) coinnuMicrd the Gmin ai»l Coiii- 
 
 missioii bumneHH, ii\\«'stinj^ us follows : 
 
 llosources.— Ciisli on Imiid, $1,500; 400 bush. Fall Wheat »it $1 ; 
 1,000 bush. Oats at 40c. ; K. Mills owoa oil account $400. 
 
 Liabilities. I own AV. Marling on account $100, and V. Fraser, 
 on account, $r»0. 
 2. J)ei)osi((«(l in Hank of Connnei«e $1,400. Hliipped to Fisher tk Son, 
 
 Montreal, to bo Bold on my accjount an«{ risk, 500 bush. Oats 
 
 invoiced at 40c. ; 200 bush. Fall Wheat invoiced at $1. Paid 
 
 shippin.i; expenses with cash $20. 
 .*i. Bought of W. Young 500 bush. Wheat at 90c. Gave in payment my 
 
 draft at .SO days on 11. Mills for $400 and check for balance. 
 
 4. Received fiom R. J^'owler, Kincardine, to be sold on his account and risk, 
 
 1,000 bush. Barley, invoiced ut 45c. Paid freight, $.S0, with cash. 
 
 5. Accepted W. Marling's draft on luo at 10 days' sight in favor of (». 
 
 King for $100. 
 
 6. Sold from R. Fowler's Consignment, No. 1, to J. Matheson 500 bush. 
 
 Barley at 45e. Received in payment his note at 30 days. 
 !S. Shipped to Fisher &, Son, Montreal, (2nd shipment,) 400 bush. Oats 
 invoiced at 40c. And 500 bush. Wheat at 90c. Paid shipping 
 expenses $40 with my order on Fisher & Son. 
 
 9. Bought of John Young, on one month's credit, 1,000 bush. Oats at 
 
 35c. ; 500 bush. Barley at 50c. and 300 bush. Wheat at 80c. 
 
 10. Sold Tait & Co. 500 bush. Oats at 42c. ; 300 bush. Wheat at $1.05. 
 
 Received in payment an order on Robert Ewing for $200, the bal- 
 ance to remain on account. 
 
 12. Fisher <fe Son rendered an Account Sales of the goods shipped to 
 
 them on the 2nd inst. They remitted my net proceeds in cash, 
 $450, which I immediately deposited. 
 
 13. Robert Ewing paid his order received fj*om Tait & Co. on the 10th 
 
 inst. with his check $200. 
 • 1 5. Sold for cash to L. M. Stark 500 bush. Barley, at 52c., being the re- 
 mainder of R. Fowler's Consignment, No. 1. Deposited in bank, 
 cash $400. Paid Marling's draft of the 5th inst. with check $100. 
 37. Closed R. Fowler's Consignment. N *. 1, and rendered an Account Sales, 
 Commission 2% on sales, $ — . Storage 2c. per bush., $ — . Check 
 remitted for net proceeds. 
 
 18. Bought of M. C. McCaul 600 bush. Oats at 30c. Gave in payment 
 
 my note at 30 days for $100 and my order on Tait <fe Co., for |80. 
 
 19. Shipped to Sloan & Williams, Montreal, to be sold on my account and 
 
 risk, 1,200 bush. Wheat invoiced at 80c. Paid shipping expenses, 
 $30, with cash $20 and my sight draft on Tait & Co. for $10. 
 
MOOK-KKKPING. 
 
 95 
 
 20. l^ouKh. of A TTilkn- 1,300 hr.sh. Whont ni 80c. Gave, in pnvu.eni my 
 clKirk on tli(« hank. ^ " "^ 
 
 23. Hemvod fron. FislM-r .t Hon an Account Hales of n.y 2ncl Hlunnu-nt 
 iiade to then, on thn 8th uust. Net ,,roccc.lM .1^700, which is .laced 
 to my (-rccht in then- Ixioks. ^ 
 
 27. l^..vivcd from If. Fowler, Kincnnlinc, (L'nd Cons^t.) to ho sold on his 
 account ,.nd r.sk, 1 000 hush. J{nrl,.y. B,,i,l f[,,l^,t,^ l^r,, with 
 chock, and dra /ago, $15, with cash. h , t , uu 
 
 L>!>. Hold Hohcrt -VVulkcr, 400 hush. IWlcy fn.n, ]{. F<,wh,r'H Cons^t., 
 JMo. -, at f).,,.. H„c(.ncd m j.ay.ncnt his not,- „t .'iO days for .f 100, 
 an<l his Hi^d.t draft on .las. Johnson for halanc.-, |]20. 
 
 30. Discounted J. Matheson's note as per Ji. K Disc.mnt allowed, $1;"). 
 ^et i)roceeds deposited in Hank. 
 
 Inwnturiea, Nmu 30, ./.V,sy;. 
 
 Mdse.-.'JOO bush. Wheat at 9()c. ; 1200 I.uhI,. Oats at .Wc. ; 
 
 mo bush. Harley at Mc. Total atjon 
 
 Shipment to Sloan & Williams, No. ] . . . j,, n 
 
 ('o.nmiH8ioi,-2% on the part sold of H. Fowli-r 'g* ( !o'i."8gt. ' 
 
 "•- 4 40 
 
 Htu^nt «;i„^a!,nlai .3.^"''""' '" """"*""°" ^'"^ **''« "'' '« *« ^« nystcnatically done by tl.u 
 
 Statement-Set IX. 
 
 Accounts in Lkdokr. 
 
 ^S^OfJifc 
 
 Ciuh '.'.'.'.'.'.'.'.[ 
 
 Merchandise 
 
 Jiilla Receivable 
 
 liilh Payable 
 
 linnk 
 
 Tait A; Co '.'......'. 
 
 JnU-vfut dk DiHcount 
 
 F. Fraser 
 
 ^^MpH to Fisher A Son, No. 1 
 
 Commission 
 
 R Fowler's Consign' t, iio.2 
 
 Fisher A Son 
 
 Storage 
 
 Ship't to Fisher A Son, No. L' 
 
 John Young 
 
 Ship't to Sloan <fc Williams, 
 No.l 
 
 Stock's net Inv'st . . $2550 
 " " Gain... 10010 
 
 Worth 
 
 Dn. 
 
 soso 
 asio 
 
 375 
 
 100 
 
 2510 
 
 325 
 
 15 
 
 420 
 
 40 
 
 700 
 650 
 
 090 
 
 Vm. 
 
 I 
 
 25.W 
 
 1885 
 
 2495 
 
 275 
 
 200 
 
 1680 
 
 90 
 
 60 
 450 
 
 10 
 220 
 
 40 
 
 20 
 700 
 840 
 
 RBdOWRCKN, 
 
 'iO 
 
 70 
 
 IWl.'A 
 
 191 
 
 905 
 
 100 
 
 820 
 
 LlAHIIilTIKH, 
 
 11515 
 
 4 
 
 660 
 090 
 
 70 
 
 40 
 
 3010 
 
 100 
 
 50 
 
 180 
 
 S40 
 
 Oainh. 
 
 10 
 
 90 
 
 Lot)8K8. 
 
 30 
 15] 
 
 20 
 50 
 
 10 
 
 W 
 10 
 
 16 
 
 10 
 
 190 
 
 to 
 
 206110 
 
^'^1 
 
 90 
 
 UUOK KKKIMNU. 
 
 In tlio pn»viou« \»%vt, of IhU fluipUM', U wiw tho n(m to OHtnhliKh tln» 
 imnoiploH uiuloHyinf? tho |mnwr motluMU of tlmlin^ with Klupnn'U«H imd 
 iM»nKi«nmoiiU. Tho hHkUmU. who hiM gmsiMMl (hono pnnoli>h»M im now in a 
 iMwition U> mako li imu'tii'ul iinpHoHtion of thoni. Am neh bmnch i»f tho 
 Shipping luvi (■otnniisHion husinoxM hr.n Uh own pn«Milinr i*«Miuitt*niiMi«H, it. 
 wouhl l)o lH\von«l tho soopo of this work 1«» <lis««UMM thoso in particulnr. All 
 that, oan ho <lono is to oxomplify in a giMU'ial way, a n»oth«Hl which in 
 thonmghly pnictioal, an»l whifh oan easily ho nuMUlitMl ho m to moot tho 
 ihMuanlls of a«»y paitiouhir oaso. Tho iMHikM «ho«1 aii>: a ConnniwHion hi- 
 vt>i«M> lUH>k, CiunnuHsion Hal«»H lUnik, .lournal, Canh Hook, Hill lUnik, and 
 
 '*^*' THE COMMISSION INVOIOB BOOK. 
 
 Tins b»>ok U tho ono into whi«'h tho Ihst. ontry of a oonsigiunont in ina(h». 
 Whon tho invoioo 8i>nt. by tho nhippor \h nn-oivtMl hy tho oonHign<M>, ho 
 oitlior mstos tho original inv«)i«'o, or <MilorHaii almtract. of it, into thin hook. 
 llo will also numhor tho (•oi\Higmn«>ntH, ivspootivrly, 1, 2, .% i"ir«'. Am himmi 
 as a oo>isigiunoi\t is ivooivtMl, tho invoico will ho Huvkcd, tho titlo of tho 
 oonsignm«M\t. lH>ing ot\t«>n'd {\\h\ ink) in tlu^ margin, and every box, park- 
 ago, &0., l)oU>nging to it, will ho marked with tlu^ liistinifninhiaij mniihei* 
 given to it. OilVerent eonsignmentM frojn tho Hamo person Hhovild ho 
 marktnl A., R., etc. For example, the thinl eonsigtnn«M»t reeeived from 
 Thos. Murray '.r.iglit bo entiiUMl: ''(lO) TIiom. Murray's (^uisgt. 0.," and 
 the fourth: "(l-"^) Thos. Murray's (\>nsgl, D." Tho l(<tter of the alphabet) 
 shews tho onler am»)ng th«)so re«n'ived from tho Hamo person or linn ; whilo 
 tho number shews tho on ler aniong thoso n»eeive<l from all parties. Tho 
 Conunissit)!! Invoioo ]^)ok is use«l in(M'»»ly jih an auxiliary. 
 
 THE COMMISSION SAIiBS BOOK. 
 Whenever a oot\signment is ivocMved, an a<'<'ount is open(»d with it in this 
 book having as its titlo that given to it in tho Com. Invoico HtMjk. This 
 aooouut is (iebited only for tlu> aotual amount whi<'h it rosfn the oiMisigneo 
 for f»*eight, drayag(», storage, ito. It is credit ed with all amounts of Hales 
 as they occur. The metluMi of posting from this book will bo rivulily under- 
 stiK)d on examining the form slxnvn (Uipp. 100 and 101. Cash transactions 
 are not postwl fn>m this IxMik, but carried to tho Cash Hook. (No Cash 
 Acciiuut is kept in the Ledgtir, as such would only oaus<i additional wi»rk). 
 When the gtxxls l)elonging to a consignment are all sold, tho account is 
 chargeti with the connnission, and an Account Hales is rendeiHMl. If tho 
 *net pixKjeeds art^ not remitted, tho account in this lu)ok may \m left open ; 
 or, it may bo closed and tho net pr«K:ee<ls mav bo placed to tho credit of 
 the consignor in tho Ledger. If the net proceiMls aro remitted, the account 
 with the consignment must be closed. The Com. Sales Book should be 
 indexed just like the Ledger. 
 
 NoTK —In makiiiK out the sUps showing tho nalci, the clerks will uiio tho ConRliJfnmont numbfrf, as 
 thc< are quito sufflcient to Identify tho ff<>o<in *c\A. Mmih tliiio ia saved by miw^ the diBUnuuishlnif 
 numbers of the consignments instewl of their full titled. 
 
Hook KK.KIMVU. 
 
 1)7 
 
 HBt X. KXrr.ANATrONH. 
 
 1m Huh hH Mio MH.kN from wliirh M,,, ,„,Mfi„^ \^ ,|„„„ „,,.. ,,„, (,,,^,, 
 T^.M.k. .Inunw.l. HM.I ( MinmiMHion Ha\oH M.H.k. All msl, ln„,sM.Hin„H .un 
 imnstom;, fru,,, H.o CmmI, llnuk to tl.o |..,lK<>r. mm.I. of iUnu an nr,. vnu- 
 
 M.MHnd Nv. I, ..onM.Kmn.M.lM l,..,M,:< (hsl, ,.„m,..| IV Ij.n C iniKMio,, HhI-m 
 
 look Io(|,o(,„hI, ook. lM.(lirsi„.|o„«i„«(,M.o„.iKnm.M.(M «,.,„.,„• i„(lM. 
 
 o,n.m«M,o,v H„I..M Hook, h.hI all rxr,.,,li„K (|,„„„ i„volvi„K mHl, nrn ,,o«l...| 
 
 (iH'.rtro,,, <o IJm l„M|g,.,, (,(|„.,. (,mMMM..Hoi,M hi'o .M.Irr.MJ int., llin Joninnl ' 
 
 A I. n.o (mm oi .■N.sinj,, it „mimI, I.o r,.m,.|iilM.n>.l llwil, (|„. (' miMHiori HhI.h 
 
 nook toniiH imil, of lli(» li(>»|gt.|'. 
 
 BET X—HIIIPPINa AND OOMM fHHION. 
 
 flnoh imuf^CnmmiH^ion inrolm Nook, GnmmlHHinn S,d,H /A,,,/-, (!aHl, 
 
 ll(>itk\ Itill /li„i/,^ .htttriiaf. and Itodifov, 
 
 — , March /, /.S',S7. 
 
 / . ^"t"*'"; "• ) 'r I'"''^ 'KV .•..M,nu.M...Ml H (l,.,.,.n,l HI,i,.,.inK "r.,! (•o,„- 
 
 tmsH.oii huMin.'SH, wilh Mm* foll.nviiiK nPHoiiiv.-H hii.| Li„l.i|i( jLh • 
 
 Jl.jnO; h ( unnH imlo lor #^U>, .|hI...| |.\.|,. |, |hh7, .|rM,w„ nf, 
 .5 ii.os nn.l iH-HriMK 1"IoivhI, uI, 7%; inlrrPKl, ,„TrM...|, 1*^- • A 
 (<. McKiiyownM iiHMui Hccoinil, 111(75. » . . . 
 
 liiMl.iJidcM. I own .1. II. Sic.. In on u.'c<.iirii, lloO 
 Kn^MK.-.! II. A. M.-l-ur..,, uh hook k.-.-por n(, fHO ,„.r n.onll., ,um1 
 .Tolin ILtyd iih clrrk n(, )i|(.t(). ' 
 
 r,0()o''!.r!-"^'"p'" l'''^ -nnHurMn.-n on WM,ri,ho,i.,. ,^.,1 .onl.nlM lor 
 f.»()()0„(, H /. Pui.l ).n"ninini vvilji r/isli, )||( i^/. /- » 
 ."{. lH«|.oMi((M| ill (Ik, n„,Mk oF CoiiinK-rc., c/ihIi, .^j T.OO 
 
 Shi,.,HM| (o |{. M. l\|,.nvr,Toron(„, If, hrcsK-.l IIokh, !I,7L'0 II,h., hI, 
 
 P(ii<l cnsli Tor l<'n<'|, $I0. 
 r.. |{,,.,Hav.M| iVom A (J. MrK„,y on /...■cMinl, lo lulm IJuMcr, 150 II,h „(, I (r 
 
 - I, • TT • •'^*"!'J" '"•>' ""'" "■•' '•^ ''">'« '" *'"•" "f ".:.-ounl, i - 
 
 '• '{<'<•«;.' v.Ml Iron. l'o(..r M..(Jn;«or, rnisl-y, („ 1,„ „.,M „„ ,..,„„„iH„io„; Lin 
 
 .rs(, ronsiKmnn, , .-..ns-sl „.« of jHO M.h, n.,,,,. ,•„,,„•,.,.,, „,;^j 
 laid trcif^hl,, *()(), will, ,„y rli(.ck, and dniv;iir<' .'"("0 vvidi «v.«l. 
 
 H. Sold Uidiard naxicr lOO I.I.I.i l^lour' fro,,, vlu'^^ U:^^!:^ : ^t^^, 
 tn(>nl)al, $1.1)0. |{,,,MuvHd a sIkIiI- .IrafI- on F. S. Sorhv for ^.'JOO 
 an onlor .... 1». U. S..,n.,rK for ,f lOO, n,n.| a ,|i.,..k .„, Mio M.^rchanW 
 Udiik t.)r IkiIuik!.'!, % — . 
 
 10. H(3coiv,..l from W. M M.,rcor an Acrounl, S,.,I.,h .,f shipmonl, to him of 
 tl.o .»r.l u.Ht Nob pr.,coodH 1750. Hn rf.niUcl a .Iraft ,m Mm 
 MolsoriH JJank, purchttwed with llmi ani(»unfc. (Excl.aiig,, 1/.) 
 
98 
 
 HOOK KRKriNO. 
 
 lil 
 
 - 5*' 
 ft 
 
 Mi 
 
 11. 8oKl A. H. Manning 80 bhln. Flour fn»ni PoUm* \Mln>Kni'H CunHlgi^ 
 
 mtnit at $IS. UoiH^ivwl in jmynH'nt Saniuol Uaikor'n nuto for if'iOO, 
 tlatixl Jan. 11, 1887, at 4 num., on which I an» allowtMl <liKn.unt at 
 tho mt«» of () ' for unoxpinMl tinio; tho balamo (o rouiain on ac- 
 count, $ . 
 
 12. Uectnv^Ml fn.ni K. V. liico, (hiclph, to bo »uh\ on connnlHHion, 50 kngn 
 
 Huttor, 2,250 lb«., invoiccti at l.'Jc. l*ai«l fivight with \uy chivk, 
 
 ifT.nO, atnl tlravago with cash, #2.50. 
 14. lltMuhMtMl l»ctt>r Mc(^n>gor an Acct. Males, charging him 2J% com., 
 . #,'> for Ktorag»», antl $\.'M for insuranc«v 
 \ Kccoivcil fi-ou» A. CJ. :McKny, his noto at (U) ilays, In full of 
 
 ftooount, 8 -• 
 
 Paid for Toh»gran», cash 25c. 
 Hocoivotl fit»ni IVtcr Mc(}ivg«ir, Vaishw, IiIh wniond conHigntnoni of 
 
 Flour, 120 bhiK. at |!4.80. Paid fivight with my chock, $40, and 
 
 tlrayago with cash, #10. 
 Sold Alox. Mann on account, 20 r)roHH(«l llogM, 3,600 Iba. at #0.20 
 
 por 1 cwt. 
 Uou»itto<l Potcr McGrogor, on account, P. Ounn'a noto aH por H. B., 
 
 allowing discount at tho rate of 0%, and cash for balance, $ . 
 
 (As this noto boars jntcivs^, tho amount whon duo nnist bo dis- 
 
 countwl at G% for tho uncxpiro ? timo.) 
 Sold Wm. Kcofor fmm E. P. Rico's Consignment .10 kegs Huttor, 
 
 1,420 lbs. at 15c.; from Peter McGivgor's second Oonsigmnent, 40 
 
 bbls. Flour at #5.50. Received in payment a draft for #100 at 30 
 
 days' sight, on K C. Mallory ; a sight draft on A. Hilker for #150, 
 
 and a chock for balanct», # . (Mallory's acceptttiice takt»n at a 
 
 discount of 2%). 
 Deposited in tbo Rank of Conmiorce, cash #1,000. 
 Rocoivod fronj E. P. Rico, his second Consignment, consisting of 1 50 
 
 kegs Butter, 6,300 lbs. Paid f »-eight #13, and drayago #4, with check. 
 Sold P. H. Sv)mers on acct., from E. P. Rico'a lii-st Consignment, 20 
 
 kegs Butter, 830 lbs. at 15c. 
 
 raid cash for Cml Oil, #1.60. , , . , 
 
 Discounted Mallory's acceptance at 8% per annum, and deposited 
 
 proceeds. 
 Rendered E. P. Rice an Acct. Sales of his first Consignment, chargmg 
 
 3% commission, #2.50 for storage and #1.20 for insurance. 
 
 Remitted Samuel Barker's note as per B. B., at a discount of 
 
 6% per annum and my check for remoimler of net proceeds due the 
 
 shipper. 
 
 29. Sold R. A. Foster for cash, 100 bbls. Flour at #5.20. 
 
 30. Sold John Hardy the remainder of Peter McGregor's second consign- 
 
 ment at #5.60 per bbl. Received in payment a draft on tho 
 Bank of Montreal for $200, a sight draft on Thos. Fraser for #100. 
 and an order on J. H. Steele f or " ' ' " 
 
 16. 
 
 17. 
 
 18. 
 
 21. 
 
 22. 
 24. 
 
 25. 
 
 26. 
 
 •28. 
 
OOOK-KKKI'INfJ. 
 
 09 
 
 30. HoiuLm..,! iViiM- Vvdn^^ur «„ Acvuui.t Hulrn of |,Ih m,m.o,„| ,..,„.U„. 
 an... , lp.U.(). Itr.n.tHMl < ,., f.,r.«gnl„K m«|,,, ,|,Hf,, o„ TI.um. Krn.„r. 
 
 fh.^ ImIhIHO of .„.♦, pf,K-.MMlM l„.i„^ p|,„..Ml |o (I.M rn.,|il, of nhip.MU' 
 
 dut... .Imm 4 JH87,nfc 3 i.umM.H, h.uI Imh ,.|,....k o,, il.n Hank o 
 Moiifrnil, (o iMiliiiKn /u'<'o»ilit. 
 bl. iH^poHit.Ml in ihn Hank of Connnprc.., nisli l|Hlfl. 
 
 A. If. Manning paid niHli in full ..i' /uvoiint, l| -. 
 
 luKl II. A. Mi-birnu r»0, .in.l .)..|in Moy.l m) J.m' oliwk. 
 
 Invrnforii'M, Mitnh .{/, 
 
 Mcl»o.--n(MMlM niiiinininu uimolit mui\ tui 
 
 KxiM.i.Ho..- Fiiol oil haiuT '.'.'.'.'.'.'.'.'.'.'.['." 4 11 
 
 TirMilt.- -N„t gain, ip20(). Not cHi>itHl ,it doning, $1,(J0«.U2. 
 
smmm 
 
 100 
 
 BOOK-KEEPING. 
 
 1887 
 Mar. 
 
 
 
 (1) P. McGregor's 
 
 COMMISSION 
 
 CHARGES. 
 
 V 
 
 Bank of Commerce 
 
 Cash 
 
 Gommission 
 Insurance 
 Storage 
 
 P. McGregor^ 
 
 Freight on xSO lbs. Flour, valued 
 
 at $1.20 
 
 Drayage 
 
 My commission a< 2^ % 
 
 Ket proceeds 
 
 60 
 
 20 
 22 
 
 A 
 
 5 
 
 25 
 30 
 
 111 
 
 778 
 
 800 
 
 55 
 
 It5 
 
 * When this account is closeu an account with P. McGregor is opened in t|je Ledger lysCr 
 " By P. McGregor's Consignment. $778.45." Some accountants do not close such as this until the 
 
 ' By . . 
 
 remittance is made. 
 
 i; 
 
 ni 
 
 (2) E. F. Bice's 
 
 >n + 
 
 la87 
 
 Mar. 
 
 12 
 
 V 
 
 Bank of Commerce 
 Cash 
 
 Freight on 50 kegs Butter, 2,250 
 
 lbs., valued at $292.50 
 
 Drayage 
 
 CHARGES. 
 
 50 
 50 
 
 t This account is filled only in part. The student is expected to do the rest hmiself. There 'vill 
 be tio ^th^rTcounts in thi Commission Sales Book, viz.: "(3) P. McGregor's Consignment B, 
 and "(4j E. P. Rice's Consignment B." 
 
BOOKKEEPING. 
 
 101 
 
 SALES BOOK 
 
 CovMgnnient A, 
 
 18S7 
 Mar. 
 
 8 
 << 
 
 11 
 
 l/ C'aafi $390 
 
 P. H, Sotners... 100 
 
 Bills Rec'ble Si 
 
 A. H. Manning f. 200 
 
 Sold to R. Baxter 100 hhls. Flour 
 at $4.90 . . 
 
 Sold to A. H. Manning 80 hhls. 
 $5. Mec^d in part payment, 
 Barher'a note as per B. B 
 
 t Journal entry: A. H. Manning, Dr. $2.20. Int. an-l Dlti., Cr. 82.20. 
 
 SALES. 
 
 ■ 
 
 
 490 
 
 400 
 
 890 
 
 —\- 
 
 Consignment A. 
 
 SALES. 
 
102 
 
 liOOK-KRKPINa. 
 
 JOINT ACCOUNTS. 
 
 When two or moi-o }MM'sons (or Urms) tmito in tho purchase and «ale of 
 some particular article or articles, witli a \'w\v to making a profit tJuMol.y 
 a «;>6c/rt/ i>artuorship is fornuMi, and tho gootls aro mid to bo hought aiul 
 sold oil Joint Account. 
 
 Tho partners do not carry on busincsn under a firm tille, as in fh« case 
 of a general parfriership, for the joint iivterest extcndH oidy to the trans- 
 actions connected with the articles speciHed at the time the contract was 
 made. Tt is usual to appoint oxw of the persons concern(>d tiA Manayer, 
 and to define his duties as such. 
 
 Whenever goods are purchased or otherwise provided for the joint specu- 
 lation, it beconu's the duty of the i)a,rtner who sup})lie(l them (o furnish 
 each member with a copy M Vtw invoice. On the dispt)sal of the proiKuty, 
 the manager will render an Account Sales to cjich. 
 
 "Shipment Co." or "Adventure Co." is a representative titK^ un.lcr 
 which tho amount of our interesf. in goods or otlu>r pniperty to be sold on 
 joint account is placed. 
 
 "Merchandise Oo." is a title representing goods received by us to bo sold 
 on joint account. 
 
 SHIPMENT CO.'S. 
 
 Credit Shipment Co. for onr s/iare 
 of the net proceeds when an Account 
 Sales is received. 
 
 Debit Shipment Co. for our in- 
 terest in property shipped by us, cr 
 furnisheii by others, to be sold on 
 our joint account and risk, and also 
 for our share ofcxpetises o\x the same. 
 
 If at the time of doslnir the books, a part of the Roods remains unsold, an«i if an account «' Part'al 
 sale" hU beerre^elved. Shipnu.nt Co. shouKl be crediied for our share of the proceeds, m welf a« for 
 our interest in the property remaining unsold. . „, 
 
 If no Account Sales has been rendered. Shipment Co. should be credited " Uy Jtalamw .Tnv.'nt,»;i for 
 tho amount necessary to close tho account. 
 
 Shipment Co.'s are closed either " To" or " }}y Loss and ^iiin." 
 Different Shipment Companies are distinguished by numbering them or 
 
 by affixing letters of the alphabet, as : " Shipment Co., No. 1." " Ship- 
 
 n'lent Co., No. 2." " Shipinent Co., A.," &c. 
 
 MERCHANDISE CO.'S. 
 
 Credit Mdse. Co. for the procmln 
 of sales. 
 
 Debit Mdse. Co. for our interest 
 in the property received, and for all 
 the cJiarges on the idiole shipment. 
 
 At the time of closing, Mdse. Co. will be debited for all miposivd 
 charges for the net proceeds due the shipper, and for our share of the net 
 
IIOOK-KKKPINO. 
 
 lua 
 
 ifdin (if any). Whon thoro in a Iohs, M(1ho. Cu. will bo crcMlitiHl f«>r ovr 
 dharo of it.. 
 
 When ft rcinlUaiir^ ♦<) oovtT Hlil|tp<>i'n ii('( |iriuM'«'«!H In iiimlt< uI ilii> tliin^ of i-hiuUtIiik H"" Aot'imiil. 
 Hftl<'M. tlio atMHiniit, or iioooiuiIh rf|trt>m'iiMin( wlmt I- roniltti-d hIiouIiI In tni'dltcd. iimlfiid of »,h.. 
 Mhi|iii(>r. 
 
 If at fho Hino of <>l<iRiiij( tho liookii Hio iiroprrfv lu'loiiifliih' «n Uip Co. HftI«K iihn\i|(l lio Imf. imrHiitlv 
 Hold, MdN«. ( o. wiiiild imv(\ to hn (ircdlti'd '" Hi/ liafiiiiM liivfnturif" for only our Hlmni of (hi- irotHlH or 
 hiiiul, tin, remainder ItcliiK owneil liy Iho Mlii)»|H>r or Hhlpiii-rN. 
 
 With n'KtvM to tho cotnniltiHlon carni'd on Co. SiUeK |mrtially dlN|)ow>d of, tlio nirUKMl «>x|ilidni'd on 
 imHfo as Hlio\ild Im luloptcd, HonioUiiieM hiu^Ii iiniountM of coniniiMMloii uni left, oiif, of connidcnillon 
 iilt^<H:<'tlH'rat «ho tiino of eloMintr Hio liookM. TIiIh niiiy Im dono wlieii tlicMi- nniotiniN are Nniall, and 
 If. ix not Important to lltid the i'xi«it unUi or Iohm forii particular term of liuNlntiiiH. 
 
 If no mdcH Imvo brcn iniidc, MiIhc. Co. nhould lio crwlitcd "% linlaiirif Invnitmu" for tho nwn 
 neiWHHary l,o oIonu the account. 
 
 At tIrHt Hlglit It nuiy Hccin a little HtraiiKo to ret^ard the chartrcH for whi<li we have ilelilled the Mdne 
 Co. ait a rcHource, hut on rellecllon It will lie ween that tliU Ih the proper view to take. Cerlalnlv, we 
 havo paid a portion of thcMc charjfCH for oiUHclveM, therehy IncreaHlnJr the (-(mt of our Hhare of the u'oodM. 
 Ih it, therefore, not reaHonahle to c(inHlder the (foodn lielouKinif to the Co. HaleH worth their totalcoHt? 
 If HO, the poNitlon we take Ih tho prone^ one ; for tho renialiKhir of the oharKen we in reality, pay forthi* 
 other partncrM, who will praoticiafly refund to uh tho amount wo have paid for them wheua Meiiletnent 
 is offfcted. 
 
 Dirtliininl. M(Mcluui<li.s(i C(tni|)»iiiioH aro iiHuiilly (liHUMguiHhntl }>y allixiiij^ 
 lottors of tho n,li)li((,lM^t,, as «' JVIdso. Co., A," " JVldst?. Co., B," tto. 
 
 To FIND THIS Nkt Puockkdh.— From total wih^H fltMliu-t total cliargcn, 
 such n„s fi'oight, storagn, iiiHinvinct^, ootiinuHHion, ttc, and th(5 roniaiiKlcr 
 will 1)0 tjjo not ])ro('(M'il,s of tho buHinoHH. TluH boing dono, tho part bolonj^- 
 ing to oach ponsoti is foun<l by dividing tho whole according to agrooniont. 
 
 To FIND ouu Nkt Gain. — From our not proooods doduot our not cost, 
 and tho romaindor will bo our not gain. If our not procoedw aro hm than 
 our net cost, tho diHoronco, will, of courso, bo a loss. 
 
 Company accounts aro generally clo-sed whenever the i^ropei-ty belonging 
 to them is disposed of. 
 
lilV 
 
 II 
 
 1^ 
 
 101 
 
 BOOK-KEEPING. 
 
 EXAMPLES. 
 
 TRANSACTIONS. 
 
 JOURNAL ENTRIES. 
 
 Baker's entry). 
 Shipment Co. Dr. . 
 
 Mason " ■ 
 
 To Mdse 
 
 «« Caah .... 
 ** Cameron . 
 
 1. D. S. Baker shipped to S. 
 L. Mason, to bu sold in joint 
 account, 650 bbls. Apples, in- 
 voiced at $1.80. The shipper 
 took 300 bbls. from his own 
 warehouse, and the rest lie 
 bought of Taylor, giving in 
 payment Jones' check on the 
 Molsons Bank. He paid ship- 
 ping expenses $30 with his 
 sight draft on Cameron. 
 
 2. Mason, on receiving the ^^^^ ^Mason's e«t^.) 
 Apples, paid freight $80, and 
 dray age $10, with cash. 
 
 I 
 
 3. 
 
 signment 
 
 Mason sold the whole con- 
 (less 10 bbls. dam- 
 aged) to Welsh & Co. at $2.60, 
 and received in part payment 
 Miller's note for $200, due in 
 3 months (discount 8% per an- 
 num), and Wilson's sight draft 
 on Manning for $150. 
 
 1. Mason char-ged 2% for 
 selling, Jc. per bbl. for storage, 
 1% for insurance, and ren- 
 dered an Account Sales remit- 
 ting Wilson's sight draft on 
 Manning as above, and an or- 
 der on Welsh & Co. to settle" 
 with Baker. 
 
 To Baker 
 Cash . 
 
 (Mason's entry.) 
 
 Bills Receivable Dr 
 
 Cash " .... 
 
 WeUh A Co. " .... 
 
 To Mdse. Co. . . . 
 
 '* Int. and Dia. 
 
 600 
 600 
 
 S40 
 
 630 
 
 30 
 
 690 
 
 eoo 
 
 150 
 1318 
 
 600 
 90 
 
 1664 
 4 
 
 5. 
 
 Baker received the Ac- 
 count Sties and remittance. 
 
 (Mason's entry. ) 
 
 Mdse Co. Dr >. . 
 
 Baker " 
 
 To Commission 
 
 " Storage 
 
 " Insurance 
 
 " Cash 
 
 " Welsh ,hCo.... 
 " Loss and Gain.. 
 
 (Baker's entry. ) 
 
 Cash Dr 
 
 Welsh diCo. " .... 
 
 To Shipment Co. 
 
 " Mnson 
 
 974 
 600 
 
 33 
 
 13 
 
 5 
 
 150 
 
 1210 
 
 160 
 
 28 
 
 85 
 
 93 
 94 
 
 150 
 1210 
 
 93 
 
 760 
 600 
 
 93 
 
BOOK-KEEPING. 
 
 105 
 
 Account Sales of GoO hhls. Apples, sold on ioint account of 
 JJ. 6. Baker and S. L. Mason, each one-half. 
 
 Sales. 
 
 Sold to Welsh d: Co. 64O hhls. (10 damaged) at 
 $2 GO 
 
 Charges. 
 
 Freight and Drayage . 
 Storage 
 
 JHSurance. 
 
 Ccmmission 
 
 Total net proceeds 
 
 My i net proceeds ^7^0 94 
 
 Your ^ 'jiet j)roceeds '^f^Q gg 
 
 Remitted hy sight draft on Manning and order on 
 Welsh «t- Co. to cover net proceeds and close 
 account ^1360 93 
 
 E. ci- O. E. 
 
 Clinton, June 9, 18S7. 
 
 S. L. MASON, 
 
 Consignee. 
 
 90 
 13 
 
 5 
 
 85 
 
 1664 
 
 14? 
 
 1521 
 
 13 
 87 
 
 In the following exercises, the student will give the partners' Journal 
 entries and make out the Account Sales in each case. He will also write 
 the correspondence required. 
 
 EXERCISE I. 
 
 1. Monroe shipped to Gilroy for sale on joint account, 1,200 bush. Wheat 
 
 invoiced at 90c., and paid shipping expenses with cash, $30. ' 
 
 2. Gilroy on receipt of the Wheat paid freight, $50, with his check and 
 
 drayage $10, with cash. ' 
 
 3. Gilroy sold the whole shipment to Kerr & Co. for $1,200, receiving in 
 
 payment Brown's sight draft on Jones for .$500 ; McKay's accept- 
 ance due in 10 days for $400; an order on Corbett for $100 • the 
 balance to remain on account. ' 
 
 4. Gilroy charged 2% commission, $10 storage, $3 insurance, and rendered 
 
 an Account Sales, remitting Brown's sight draft as above, and his 
 own note at 20 days, to cover the amount due the shipper. 
 
 Hi iBROISE II. 
 
 1. A shipped goods, invoiced at $1,250, to B, for sale on joint account 
 and paid shipping expenses $25, with his noie. 
 
100 
 
 noOK KKKI'tmt, 
 
 
 ) 
 
 lit I 
 
 a. B, on mvipt of <ho j^xxK l*!*''' fivijht »:U), Nvith oash inul »lt.»yi«gi» 
 
 ♦0.50, with his ohivk. 
 .H. 11 soltKho Nvliolo t»f \\\o |^^^^MU to (^ for #1,110, mul ivoolvinl In i».»\ 
 
 uuM\i r's siwht »lr!»ft ou U f.u- *i»00 : K.h (».>.vp(an.'o for $700 
 
 short thto 10 «l)»vs, an«MrH ohock for lNilaM«<i>. I 
 ♦. }\ nMuloHMl .nv .\»voui\( Salon, ohavgiog l\\, oohmuIhuIoh, fMHO fur 
 
 .Htoi'aijtv t\\\x\ 5?1.I5 for iuHuranoo. Ho muiH«Ml a, hank thafl laii 
 
 oha,HiHl with thoHiuount. iv.iuitvil to notllo in full with tho Mhi|>|«-r. 
 
 BJXH1W0I8B1 in. 
 
 1. Avovy shipi>o«l to \\hw\< for salo on joit»l a.vonnt. 'J.^U) hhlw. Appl.'s. 
 
 invoi,v.l at !$l,V*0 por bhl. Pai*! oash. r.!0, for loaiUng. 
 
 2. niaok, on tvooipt, of tho Applos, pai.l f.vight, !i?h>0, Nvitl» Ins «<luM-k ; ho 
 
 also paiti «lravagt% #'J0, with oash. 
 
 X lUaok athlo.! to 'tho joitO salon 500 hhls., whioh ho pnrohaso.l Irtnn 
 Moh^wl at ^\.\{\ Kivi^K u\ vay»noi\t. his Kiuhl <hafl on Mnrray for 
 .«»00 an«l his nolo at H) «lavs for tho halanoo, $ . 
 
 I. IMavk sola tho wholo .>f tho Applos (h'sH H) hhls. whioh sponoil) to 
 Mason at. .^l.TO. Ilo rootMvod in pavtnont. llilkor's aoooptanoo On.^ 
 m 15 .lays for SSOO. HruooH night, tlraft, on MoKay for|IOO, Hn.l 
 Mason's ohook for tho I N» la nro, ;li^ . aha r 
 
 .*). Bkok oltivruo,! 'Jo. por hhl. oommission for hnyii.K mm.1 soiling, *.") for 
 otM^porago, $10 for insuranoo, juul $'J0 f.<r storagi*; an<l ron.loro.l 
 an Aooonnt. Salos, iv\nitting to Av<m\v, Mnu-o's sight dr. .(- as alaoo 
 in jv'vrl paynuMil of n«>t prot'oods. 
 
 BXBR0I8B IV. 
 
 1. A. Kuhy shippoil to ISforris it Co., for salo on j«»int. aooonnt^j^ 2,500 hhls. 
 
 Applos, at. |l \H'V bhl., paying shippitig oxponsos #175, with hirt 
 ohook on \\w Morohants' llfmk. 
 
 2. Morris \' Co., on muMpt. of tho Apples, paid #15 .Ira /ago willi .'ash. 
 
 l\. Morris iV Co. .s.>hl A. M.thirva., fr.an t1u> o..nsignnHM»l, 1,000 hhls. 
 at. #1.25 por hhl, and ivooivod in payin.>nti tln>ir .)wn nolo for #100 ; 
 Mot'»{irva'a noto for #t)00 ; and a, .•h.>.«k oi\ tln< Morohants' Hank 
 for halaiioo. 
 
 4. Buhy divw at. sii^ht. on ATorris .V Co. f..r #500.* 
 
 5. Morris ife Oo. sold W. 11. llonsOai ..n a.vl., 800 hhls. at #i.;U), fr.au 
 
 tho Co. Sal.^s. . 
 
 6. Morris it Co. sold IT. J. Tayl.>r 080 hhls. aho roniaining 20 hhls. l«>nig us.'- 
 
 k\ss), at #1.10 p»M' hhi.,a,nd rocoiv.Ml inpaytnont his no(o at .'lO.layH 
 f.>r #:U)0 ; anonlor .>n 1>. L. Brown for |120, and oash f.»rbidan.!0. 
 
 7. Morris ife Co. charginl 2| ota. por hhl. Ht.)rago, \% insura,n<>(» {on in- 
 voice prioo), and 2% oon\n\ission. Thoy n'n.lor aii Aoc(» int Hal.-s 
 rtMuitting a draft oti tlu5 Molsons Bank, pnrchasod with Iho amount] 
 
 due 
 
 iv. j\iu>y. 
 
 •Bubv will cmilt MoriU it Co., not Shlpwent V.o. MorrU & Co. will .l.'l.lt Ruhy. 
 
WOOIt r.MKllMNU. 
 
 107 
 
 mxwruJiHM V. j 
 
 —— .t/.».v fti, issr, 
 
 I'mmI,. N\|,„m(. Imvoi hU.H(),.. wl,i,.|, l.opnnW,! n|' Mulr.V !» 
 
 hMlm.on. Hin.l.M.I, ,w,i,l Ml.ippi.iu .^M""""v,, $U), will, o^.l, 
 
 ••'""''S ""'I .Im.v..^,., miO, will, ,..im|, ' ** • ^ ' "' 
 
 21. Mnimy .jMWMvml ! hHim .mIk,,...,..,!, I.OUOIm.mI.. WIm-hI, p,u 
 
 '''' ^^7iul:VYiir^1 M.o Nvl.wlo ron«|«,n,„M.l, lo Huh,.,!, II. ('.mmom 
 
 all H,.y, n,n.,M iV.lliMi,.,. ,1- ( '.,. f.„. #l.mM^ .n.l n .li, r^,! 
 
 Koll'"' .V, Co, for #•..(»()„; II,,,,, nkn.ni.M..nmi ar-.Mu„l, 
 
 HMimnm Tl.oy .■nn.ill,., M,,, furnKoInK «IkI,., .ImCl, on Kollur i 
 
 .K, h.hI a nmfl. on M.n MoImomm |l f.,, ,v|,l.|, iln-y ^nvn .W, 
 
 to wlilo in lull wilh •«(,u(l«m(,. ^ ** 
 
1U8 
 
 BOOK-KEEPINO. 
 
 CHAPTEE VII. 
 
 14 
 
 PARTNERSHIP. 
 
 "When two or more persons, by mutual consent, unite either tlie whole 
 vv fi part of their property or services, for the purpose of performing a 
 work, or carrying on a business, and agree to share in the gains and 
 losses, a partnership is said to be formed. 
 
 No contract can properly be called a partnership unless there is commu- 
 nity of profit. 
 
 A partnership may have for its object the prosecution of any lawful 
 enterprise. The contract need not be in writing, as the acts of the parties 
 concerned are taken as evidence of its existence. Although an oral agree- 
 ment is quite legal, it is usually more satisfactory to have a written, docu- 
 ment giving full pfirticuliirs. 
 
 Any person of soimd nund and not under legal disability, may be a partner. 
 
 An active partner is one who hlis an interest in the business, and is known to the public as a 
 partner. 
 
 A silent or dormant partner is one who has an interest in the business, but is unkno^vn to the 
 ^(i(Wif as a partner. 
 
 A nominal partner is one who allows his name to be used for the benefit of the firm, ivithout 
 havliKj any pecuniary iiUerent in its business. 
 
 A special partner is one who is held liable for only a specified amount. 
 
 Generally speaking each member of a flnn is resi msible for the acts of the Ann, or of any of its 
 menibei-s, these acts beiiijf within the acupe of the partnei-ship. 
 
 It is, therefore, indispensable that the utmost yood faith should be maintained between partners. 
 
 A partner cannot bind the firm by contracts clearly out of the ordinary coitrse of business ; but the 
 firm is responsible for even the fraudulent acts of any of its members committed within the proper 
 limits of the partnership. <• 
 
 When a new partner is admitted, he is under no obligation to pay any debts, or fulfil any contracts 
 of the old firm (unless he a ,;rees to assume them), as an entirely new partnership is formed. 
 
 Trading partnerships iimst be rcfjistered within the first six months of their existence. Changes of 
 membei-ship nmst also be registered. 
 
 A partnership may be dissolved as follows : — 
 
 {a) By the consent of the partners. 
 
 (b) By the death of one of the partners or by his becoming legally inca- 
 pacitated for transacting business. 
 
 (c) At the expiration of the term of the contract / or on the completion 
 of the work undertaken. 
 
 i 1 i 
 
BOOK-KEEPING. . \Q^ 
 
 (</) Afc the request of one of the partners wlioii the tinu^ is iiideflnite. 
 (e) By the bankniptct/ of a pnrtner, or of the firm. 
 
 [NoTK.— There are other olrouiiiMtancps which iiiiirht oauae o, difwolnf Inn Ut^^ fi,„ ,„« 1 1 n 
 them would bo beyond tho limits of this work.J cause a dissolution, but the considoratlon nf 
 
 All cases of dissolution, except tlioso reHuUin^^ from p.-ocess of Inw 
 bankruptcy, or the deatli of a ])artner, should l)o iv^rjstoivd. J)ut, noti./, 
 should be given in the local papers, an<l also to all parties wlio usually 
 dealt with the hnn. •' 
 
 In a partnership business it is necessary to keep an account in the 
 Ledger with eiic/t, partner. 
 
 PARTNERS' ACCOUNTS. ' 
 
 Credit each partner for his in- 
 vestment, iind for his vet tjain (if 
 any) at the time of closiii<r. ' 
 
 Debit each partner for his liahiH- \ 
 ties asstimed by the firm at com- j 
 mencing, for his withdrawals^ and ! 
 for his net loss (if any) at the time i 
 of closing. 
 
 When it is likely that several amounts may be withdrawn durinir a term of business th« hoot ,.i 
 
 8 to open a private account with each partner, .iel.itin^r it f.n- wnis /rtVvn / /w ' I;,?, ''** '*'!'" 
 
 bim and creditint? it for sums inwHtnil. 'fhcse u^i'ounts Vv 1 ». ,\^Z,\ \,u. 'if .•'"'^ prm, e wr by 
 
 Accounts, before balancing the Ledger '^^'"""t« «'" ■•« <-loae<l into their respeetive Stock 
 
 Before taking a new partner into a business the books should be dosed ho thnf fi,„ f..,. * i • 
 aflfairs may 1k) known to all parties concerned. Such a v,oiiv^""y J^^^^^^^ ''*"*'' " 
 
 to the finances of the business, and thus save trouble when a settlement Is ?ole nwle ' '" '""^''''^ 
 
 The newly admitted partner is credited with his investment, after which he becomes a ahftwi. in m, 
 g&ma and losses aa per contract. oetomes a sharer in tlu- 
 
 PARTNERSHIP SETTLEMENTS. 
 
 By a partnership settlement is meant the equitable distribution of the 
 effects of a firm at the end of a term of business, or at the time of dis 
 solution. 
 
 When a partnership ceases, the books are usually left in the hands of 
 one of the members of the late firm, until a proper adjustment of the tuh*- 
 ceeds IS made. The books must be balanced and the losses or -.-uns beini' 
 api)ortioned according to the terms of contract, must be transferred' to thp 
 partners accounts, respectively. A financial statement will ),o made and 
 a copy of it given to each partner, so that he can make the proper entries 
 m his own books. ^ ^ "I'nr^ 
 
 In his own private books, each partner will hold the firm Dr for the 
 amount placed to his credit in the partnership books, and make the firm 
 Cr. tor all sums received m payment from it. 
 
 I. the partnership books each partner's account is made Dr fo- -xV 
 Talu» . vaxd to hnn by the firm, while the accounts representing luch 
 values are made Cr. *^ * 
 
110 
 
 BOOK-KKEFINO. 
 
 I 
 
 <«„!!!v V.'h1![*m!TJ"''*?* •"'"?', ainouiita and give their time and attenUon to the business, it I«ou«. 
 tomary to divide the gains and losses equally. 
 
 1 ^**f " C?'"*"®'^ '^u'^^u f ^l"""*'; ^'>t o"« o' them manaffea the businew, he should be aUowed a fair 
 wslaiy for his work, the balance of the profits being sharedlwicordlnK to inieetnient. »"°*»* » ™f 
 
 .v,»l'i***° Part'e", say Invest unequal amounts, the one contributing the smaller mini should pay th.« 
 other interest on one-ha^f the difference between the investments. This being done, the gafcs an* 
 loBsea should, in fainieiMi, be shared ecjuully. • ' * 
 
 EXBBOISB I. 
 
 Thiee men, A, B and C, form a p/irtnership, investing equal amounts. 
 A receives $1,000 and pays expenses, $260; B receives $360 and pays 
 expenses, $240 ; C receives $1,200, and pays over to B, $400. They liave 
 at the time of dissolution, mdse on hand, $300, which B agrees to take. 
 What paymeuta must be made to effect a settlement 1 
 
 EXBBOISB Il.« 
 , April 18th, 1887. 
 
 Smith and Murray this day agree to carry on a partnership business, the 
 gains and losses to be divided in proportion to investment. 
 Smith invests: Cash, $700; mdse., $1,300; A. Wilkin's draft for $150 on 
 
 S. A. Cooper, dated April 1, 1887, at 60 days; balance in favor 
 
 of P. M. Campbell, $30. 
 
 Murray invests : Cash, $1,800 ; balance of John Kennedy's account, $400. 
 May/2. Smith withdraws cash, $50. 
 May 9. Murray withdraws cash, $30. 
 
 May 31. The firm has cash on hand, $1,600; merchandise in store, ^^2,000; 
 amount due on personal accounts, $440; others' notes on hand, $800; 
 notes outstanding, $143 ; the Expense Account is Dr. for $140. 
 (a) Open the partners' accounts and make the entries in them. 
 
 (6) Find the loss or gain ; divide it according to agreement and close 
 the accounts. 
 
 (c) Explain the terms, partnerahip, nommal partner, and silent partner. 
 
 EXBBOISB IIL 
 -, June 6th, 1887. 
 
 A, B and agree to do a partnership business as follows : A is to re- 
 ceive 2% of the sales as manager, and B 1% as clerk. A invests 
 cash $2,000; B, merchandise, $1,500; and O a draft at 90 days 
 on Macpherson & Co., for $3,000, dated May 17, 1887, which is 
 immediately discounted at the Merchants' Bank, at 5% per annum. 
 Proceeds placed to the credit of the firm, $ — 
 
 9. Deposited in the Merchants' Bank, cash, $1,500. 
 
 *A8 the sums veithdrawn are small, comparatively, the amount each has in the business before 
 closing, may be regarded as his net investment. 
 
BOOK-KKEPING. 
 
 Ill 
 
 ins and 
 
 ^^' ^""tho Bauk* ^'^ ^'^^' ^"""^ ""* ^^"- ^""•^ "^ P^^'"^"*' ^^'^^^ «'^ 
 Ul. Sold to E, $1,500 bush. Wheat at $1 ; MOO bhls. Flour at 86. Ro- 
 
 ceived m payment his note at 30 dayn fur $1,500, and cash for 
 
 the balarioe $ — . 
 
 24. Bought of D, 1,000 bush. Wheat at 84c. ; 500 bush. Peas at 50c. Gave 
 m payn^nt L s note at a discount of S/^ per annum for unexpired 
 tune. Jr'aid the balance m cash. 
 27. Paid expenses with cash, $80. 
 .•)0. Hold out the entire stock of goods for cash, $2,500. 
 
 (a) Open all the necessary accounts and make the proper entries in them. 
 (6) Make out a statement of Losses and Gains. Find the net gain of each 
 ic) Close the accounts. 
 
 (d) What is necessary to constitute a partnership ? 
 
 (e) Name five ways by which a partnership may be dissolved. 
 
 SET XI.-SIX.OOLUMN JOURNAL. 
 
 A very convenient form of Journal Bar Book is here introduced. By 
 re errmg to pages 114 and 115, it will oe seen that there are special 
 in rr^ 7"^ "f merchandise debits and credits. The amounts pkced 
 L lpd£?f l-'u K ^"l P°'*/^ ^^P^ratehj every day, and the page of 
 I?e Jefe F^^^ '' transferred, is placed opposite it in the column 
 
 he,wled L. F At the end of the month the cash and merchandise 
 jx>lumm are added and the totals are carried to their respective accounts 
 m the Ledger. The cash balance may be found every day if neces^rv 
 and «je amount of it entered in red ink. The Ledg /pages of the S 
 and Merchandise accounts will be entered in the pfope? column, opposite 
 the footmgs of the corresponding special columns. ^ opposite 
 
 In actual business it will be found advantageous to have a column for 
 every account to which a considerable number of items belongT For 
 
 ZSBe:^SZ!^^^;^^' *^- ^-^^ ^^ specia/columns 
 
 The advantages of the special column Journal are as follows :— 
 (a) Much time ia saved by posting totals Instead of separate amounts 
 (») The probability of making errors is reduced to a minimum 
 
 !2> ™«Tr^. 'rT "V*"' '^'""^ '°'"'"'^ ^^^°» «^«^°' ^mparisons can easUy be made 
 
112 
 
 UOOK-UOOKINU. 
 
 SET XL— HARDWARE BUSINESS. 
 * Books used. — Six Column Journal, Bill Book, and Ledger, 
 
 (two PAUTNKhM.) 
 
 May 2nd, 1SS7, 
 
 (Stnrtenf.,mm=hcrc^ and L. M. Huy luivo tl.is <luy rntcml into a cvpai-ttu-r. 
 
 Mliip to carry on a Wli(»lt'suUian(lH«;tail Jlunlwuro business on Stn'»«t, 
 
 agreeing to sliaro gains and losses acconling to iiiv«>stni.'nt. The businesa 
 is to be conducted under the lirin name of (studenti immo here \ ^ Hay. 
 ^8tu<ienf.n«.„ciure^ invvstuiont : Cash, $1,000; A. B. Matheson'H acceptance 
 
 $750 at I month, dated April LM) ; Win. Mann owes on acct., .$200 ; 
 
 David iMurshidl has to his credit $14. Total, $ — . 
 L. M. Hay's investment : Cash, $110; Merchandise, $1,250; John Jamic- 
 
 80II owes on acct., $.'J00. Total, .$ -. 
 2. Bought of Thos. Campbell, mdse. as jier invoice, .$600. Gave in j)av- 
 
 ment an onhn* on Wm. Mann for $50, ami cash for bahmco, .$ ■-, 
 
 Paid in advance, two months' rent, .$()0. 
 
 4. Deposited in the JSlerchants' Bank, ciish, $700. Sold M. Cameron for 
 
 cash 1 doz. chest Locks at 25c. a piece; 2 doz. jjrs. chest H'dles ab 
 20c. j)cr pr., .$ . 
 
 5. Bought of Massey & Co., goods as per invoice, .$400. Ga,ve check in 
 
 payment. 
 
 ^^old Jaa. Lambert for cash, 2 doz. Royal Canadian Wringers ab 
 $5 ; 500 gals. Machine Oil at 5()c. ; 4 doz. Hay Forks at 5()c. ; .3 
 
 doz. Spades, D. H'dle, at $1.10; 4 doz. Steel Shovels at $1. $ - 
 
 Deposited cash, $481.60. 
 
 6. Sold Neil Cairns 4 gals Turpentine Varnish at $1.50 ; 1^ gals. Machine 
 
 Oil ab 60c.; 4 pkgs. White Lead ab $2 ; 100 lbs. Venetian Red at 
 5c. Received in payment a drafb ab 30 days on Wm. Malcolm, $ — . 
 
 7. Sold Roberb Calder 1 Royal Canadian Wringer ab $5.50 ; 2 prs. Match 
 
 Planes ab $1.50 per pr. ; 1 carpenter's Mortise Guage ab $1 ; 4 
 
 Scan. Padlock's ab 50c., $— . Received in paymenb his order on 
 
 W. Howson. 
 Shipped to F. McKay, St. Catharines, to be sold on our acct. and risk, 
 
 goods invoiced at $800. Paid shipping expenses on the sari.i v/ith 
 
 check, $50. Paid cash for stationery, $2.50. 
 Sold Jas. Johnson, 2 doz. Spades, D. H'dle, ab $1.25 each ; 9 loz. 
 
 Shovels ab $1 each. Received in paymenb a check on the Bank of 
 
 Montreal for $40, and cash for balance. 
 Discounted A. B. Matheson's acceptance as per B. B. ab the Bank, ab 
 
 the rate of 6°/^. Proceeds deposited, $ — . 
 Paid for stationery aid > . tage, $1.50. 
 
 * The pupil win understand I.'"-.: : ; iri icea must either be pasted in n, hook for the purpose or 
 properly filed, so that they may I , rturt »d to conveniently, A Check Book and Bank Pasa Boot must 
 also be kept to shew the dealings ni h the Bank. 
 
BOOK-KKKPIN(<. ..« 
 
 1«. Received from John .Tumiosou on ucot ,... . i i . .. 
 
 ana Inn own not,, at :}() <l.ys for bulnnce. ' ' ^'^^ *'" *'^^ ' 
 
 IN. FuKi cash for Ht/itionery, nOc 
 
 clwJk, tlL'O. * • ■'^""^ '"'"»l><.rtati.m charges with 
 
 "'■ '^"'i'lfin"'."".'"-"."" »«"»■"♦. 2 Jack Pianos ,.t $1 •' ] Tvv Pl,.„„ nf 
 
 ».ws at «l.r,0;7 Kip Haw at *■ "',"'S, ^',"*'","* *' = » Han.l 
 
 2^. W.^How»„„„„i„hi.,.,.„err.,„eiv«.L„. It.'cllu!'™ the 7th u.t 
 
 Inventor!/ -' ' 
 
 Mdsc— Ooods unsold 
 
 6?o oa 
 
 lU/.. 
 
 (m^, OJJL 
 
 "^ 'Uax (jjlA. 
 
'rr^ 
 
 114 
 
 BOOK-KEEPING. 
 
 ', { ^ 
 
 .r^i,-. 
 
 
 in 
 
 i 
 
 o 
 
BOOK-KEEPING. 
 
 115 
 
 <2. 
 
 § 
 
 § 
 •« 
 
 <5i 
 
 I 
 
 § 
 
 2^ 
 
 <2i 
 
 S5 
 
 
 fi 
 
 S 
 
 .« 
 
 So 
 
 ^ 
 
 S 8 
 
 i^ 
 
 I 
 
 Co !^ 
 
 ^ 
 
 s 
 
 8 
 
 
 O 
 
 
 ^ 
 
 <5> 
 
 
 
 J- 
 
 §i 
 
 ^ 
 
 5 
 
 
 § 
 
 e 
 
 s 
 
 ftq 
 
 o 
 
 •^ 
 
 s 
 
 J* 
 
 •K> 
 
 •*i 
 
 -« 
 
 s 
 
 1 
 
 4 
 
116 
 
 BOOK-KEEPING. 
 
 As a new partner is to be taken into the concern, the books will be 
 closed, and a statement shewing the condition of the business made 
 out. This being done faithfully, there can be no dispute afterwards in 
 regard to the standing of the partners at the time the new partnership is 
 formed. 
 
 The pupil will see that it is absolutely necessary to close the loss and pain accounts, in order to give 
 each member of the firm credit for his share of the net gain, or to debit him for his share of the net 
 loss, as the case may be. 
 
 Althouirh it is customary when admitting a partner, to close the resource and liability accounts, it 
 is not indispensable that such should be done, for the simple rv -son that the closing of an account, 
 shewing by the difference between its sides, a resource or liability, does noi effect any important 
 change, as the balance must be brought down on re-opening the account. 
 
 BALANCE SHEET. 
 
 ^student's gumaine\ Vt TTfri/ 
 
 [Taken May 31, 1887.) 
 
 h 
 
 Ml 
 
 1887 
 
 May 
 
 1887 
 May 
 
 31 
 
 31 
 
 Resources. 
 
 Cash on hand 
 
 Mdae .(as per Jnv.) 
 Bills Receivable . . 
 Bal. of deposit in 
 
 Merchants^ Bank 
 Personal accts, re 
 
 ceivable 
 
 Ship't to Baker 
 
 {Inv. ) 
 
 Expense {Inv.) — 
 
 Losses. 
 
 Int. and Dis* . 
 Expense 
 
 Net gain to credit 
 of (Student's 
 name) 
 
 Net gain to credit 
 of Hay 
 
 1137 
 473 
 336 
 
 1460 
 
 107 
 
 620 
 30 
 
 4164 
 
 2 
 64 
 
 66 
 
 67 
 40 
 
 20 
 
 37 
 50 
 
 14 
 
 36 
 60 
 
 S6 
 
 40 
 74 
 
 1887 
 
 May 
 
 31 
 
 1887 
 May 
 
 31 
 
 Liabilities. 
 
 (Student's name) 
 Net worth 
 
 L. M. Bay's Net 
 worth 
 
 Balance due F. B. 
 Baker 
 
 Gains. 
 
 Merchandise .... 
 Ship't to McKay. 
 
 2044 
 
 2069 
 
 oO 
 
 4164 
 
 235 
 50 
 
 40 
 
 /4 
 
 14 
 
 S85 
 
 * This includes the Exchange. The student will open an Exchange Account for the montt of June. 
 
 i; 
 
 i'O 
 
 oo 
 
20U 
 
 2069 
 50 
 
 40 
 74 
 
 4m 
 
 14 
 
 235 
 50 
 
 
 S85 
 
 
 
 
 — 
 
 BCOK-KEEPING. 
 
 SET XL-Continued 
 
 Jime 1, 1887.-L. M. Hay and (Student. name here. \ ,^. 
 
 H. P. Carey as a partner; to carrv on «WK ^'i^^^^ admitted 
 Hardware business under the firm n.^ ^^ .^^^^^''^^^ ^nd Retail 
 
 &Co HP Pn..^ T ■ nrm nanie of (?'»'. "''''''''n.ame here. X tt 
 
 ^^o. n. F. Carey puts into the business cash to'^na '^r^' ^"^y 
 to share gains and losses in proportion to T ' '^ ' ?^- ^^^^ ''S^'^^ 
 1. Discounted Barker's acceptance.^asTer E B Jt%T''^ "^^■^^^^^'• 
 
 ceeds received in cash, $— ' '^ ^/o P®^ annum. Pro- 
 
 tl""^ l^''- ^""^P^^"' I^«"don, an invoice of .n ^ 
 
 $365. Accepted his draft at SO rL T !, ^^^'^^ amounting to 
 
 ^ ^ 114.50 ; drayage, $2. ^ '^^^' ^"^^ *^^« «^""«- Paid freight? 
 
 ^. Deposited in Bank, cash, .«!3 000 s?nU r t , 
 
 t ^"-J ^"''"n'"' good'' as per invoice «7*ft %"«*","' ^''"'^ 
 ou the 2oth ult, Nen>™ceth «roo" h"" 8°«'^^hipped to him 
 
 ' .fp-SW^; ::ti ----'--■ V a. ,U0 each . 3 
 
 Sold W. Mann, 1 Circular Saw Voo • 4 p- o 
 
 Chisels at II. Received tiTfullrnvn? ^^ ^^* ^^ '" ^ ^™i'^g 
 Bank, $-. ^ "' *^^^ payment his check on the Molsons 
 
 Hay withdrew from the business cish <SifiQ - . i^ • 
 
 M I^^^'t^' ?^^^ ^^^ ^^^ accepti" if if B «^""'"^ ''""^ ^'• 
 Sold D. Marshall, on account q t M^ ' '^~- 
 
 60c ; 6 gal. TurpeStine Yarn sh atl/eo I' '''"'''"" *^" "* 
 ] .3. Prepaid with cash my acceptance favor of tL run „ 
 
 Deposited cash, $50. " '•'™'^ «* ^hos. Campbell. Rate 6%. 
 
 $?5o, tnuieisctufrif^^rb*:;:: xn \"^'' "■""-«"« '- 
 
 the net cost, for which 4 Sd "Xk ''Sff' " K^^r™' 
 
 drayage, $3. ^d-cnecK. -f aid freight, ^15 ; 
 
 Received from D. Marshall on account cash %'^() P -a . 
 
 tisiiifif, $5. Solrl Alo^ wr ^"""c, casii, ,sg,30. Paid for ad ver- 
 
 4. 
 
 0. 
 
 8 
 
 11 
 
 20. 
 
 ")•'> 
 
 tising, 45. Sold A ex Mnll° ' """''• *'^''- P-'M for a^lver- 
 
 lbs. Putty, 4c. i— ' ^ Carnage Bolts at 2c.; 20 
 
 '°li:aof ,f S'sr^sTI^^- ff t.^..? Hand Saws at 
 
118 
 
 UOOK-KliEl'lNQ. 
 
 11 
 
 "I 
 
 24. Received from Alex. ATonroo in fi*!! of account, 2 conls WocmI at $2.S(X 
 
 Sold S. W. Ciwper, 2 Wwwp Sliovels at 11.50; 1 set Auger Jilts, 
 $4 ; 1 Nickle-plated l^race, $2.50. $ -. Kec-nved in payment an 
 ortler on Thos. Murray, for which he immediniely paid cash. 
 
 25. Discounted Mallory's acceptance as per B. B. Kate, 6%. Proceetls 
 
 in cash, $ — . 
 27^ /stmicnfBimmeheroA -yvithdnnv from the business, cash, $44.40. Sold Ti. 
 P. Stanl(\y for cash, 1 set Plated Knives and l-'orks, $5.50 ; I 
 liroMzed Metal Knobs at $1 ; 4 Mortise Locks at 40c. $ ■ . 
 
 IS. LoJined TT. O. Corbett on his note at 10 days, $G0. Sold A. K. Him- 
 / moMs, 1 Cook Stove, $10; 40 lo^^'ths Pipe at 20c.; h do/.. Tea, 
 
 Spoons at $0 per dozen; 12 Milk Pan.4 at 20c ; 5 Milk Pails at 
 
 40c. Bvceived cash, $20. 
 29. Y>. Marshall failed and made an assii,'nment, his creditors being paid 
 
 GOc. on the dollar. Keceived eash for oui share, $— . 
 
 .•^0. The partnership bciM<,' this day dissolved, it is a,jj:ived that the Student 
 will carry on the busiiu>ss'in his own name, lie assumes all ilie 
 effects and liabilities of the late tirm, and has to pay the retiring,' 
 partners their respcH^tive shares of available funds, the balance to 
 
 be paid in '^ months. 
 
 /iirciifon/. 
 
 Goods oil hand .lid/.ms.sr) 
 
 EEMARKS ON THE BALANCE SHEET.* • 
 
 A Balance Sheet, being a summary of the facts contained in a <lealer's 
 boi>ks, arranjjed in such a manner as to show at a glance the state of his 
 business, nmst exhibit the following : — 
 
 1. The Ledger Titles. 
 
 These should he K\^-m in full whrn it is c-o.ivonicnt to do so. Wlien there is a oonsidembk' niniilier 
 of Pei'sonalAeeouutsthoy ...uy be divi.led into •• I'ei-sonal A.vounta Ueceivable," and " IVi-sonal Ac- 
 counts Payable, " in order to 8:i\ i> space. 
 
 2. Tlie Ledger Folios. 
 
 3. The Dr. and Cr. footings of each account or group as exjilained in ( 1 ). 
 
 4. The Inventory. 
 
 5. TJie Losses and Gains. 
 
 0). The Proprietors (or partners') net Capital. 
 7. The Resources and Liabilities. 
 
 The student will close the Loss and Gain accounts and make out a 
 Balance Sheet of the following form : — 
 
 * The student must not confound " Balance Sheet * and " xriai Baiancc." A Trial Balance is used 
 merely to test the correctness of the Ledger. 
 
BOOK-KEEPING. 
 
 
liS* 
 
 m 
 
 \'' 
 
 120 
 
 HOOK KKKl'lNO. 
 
 As the partnership has been (lissolvecl, it is nocossary for tht- IxH.k-keopor 
 to cU)SO t\w accounts that shew lossett or gain^, and carry (Nich partner's 
 shar«' of the net ffiin, or net loss, as the ease may be, to his account. Tliis 
 beinj< (lone, a J?alaiico SlHM>t like that on pa^'e IK), will he «iv«Mi to each 
 partner, w) that he can make th(>refi-om the proper entries in his own hooks. 
 Althou^'h the t'oiMU referred to is not .so elaborate as miKht be drawn Uj), 
 it et)nt.uns all that is required to give a satisfactoiy vitnv of the finances 
 of the concern. 
 
 The student will, according' to agivement, pay each of tlu^ retirinj? part- 
 ners, his share of the available funds, that is, the cash on hand, and the 
 .sum deposited in the IMerchants' JJank. 
 
 As the stvulent now uses the books formerly kept by the firm, he will 
 ref,'ard the partners' accounts as ordinary personal accounts, dtibiting them 
 whenever payments are made, and crediting the account or accounts repre- 
 senting the value pa»-ted with. 
 
 At the expiraiion of the thice months, the accounts of tin; retiring part- 
 ners will be debited for enough to clost^ them, full payment being then made. 
 
 JOINT-STOCK COMPANY. 
 
 A Joint-Stock Company is a corporation legally authorized to carry on 
 a busijiess or perform a work, such being within the limits prescribed by 
 law The capital of the company is divided into shares, and the indi 
 viduals composing it are, therefore, called shar(>holders. The profits art- 
 divided in proportion to the number of shares held. All the busmess ot 
 the corporation is ti-ansacted by a Board of Directors, whose (iualilications 
 and powers are defined by the Act. 
 
 In an ordinary par< nership, each member is liable to the full extent of 
 his means for the liabilities of the firm ; but in a joint-stock company, each 
 shareholder is liable only for the amount of his unpaid capital. This 
 explains the meaning of the term: ''Limited," which xs added to the 
 names of companies, as for example, "The Copp, Clark Co. (Limited). 
 
 % 
 
 
 ill 
 
V 
 
 BOOK-KKEriN(J. 
 
 121 
 
 til 
 
 CHAPTEli VIII. 
 
 SINGLE ENTRY. 
 
 Wli.'ii books aro kopt by RiriKlo Entry, only pernotuil accounts uppoiir in 
 r. LtHlgfM-. Tt IS obvious, tli(Mvfoi(,, that tho " book of Hucounts " will n(.t 
 
 fuinish nny infonnution iv^'judin^' cuhIi, notes, Siv., only in so fur us th.- 
 
 trunsuotions ullocfc mrounts kept vvilli other jx^-sons, 
 
 THE DAY BOOK. 
 
 This book (lont.iiiis entries of all transactions which afToct persOHal 
 accounts and no others. WIumi a (leal(>r giv«\s a p^srson value, without 
 receiving cuiual value at the ttiim, ho should niako tho jKU-son />/•. Wluui 
 H ilealer gets value, from a j)erson without giving e(|ual value at the time, 
 he should make tlio person Cr. 
 
 Tho form shewn on jwige 1 21 will ]w f(.und very conv<Miient,: it may also be 
 used to tost the coi-roctness of tho })ost,ing. Tluu-o are two money c<.UnnnK, 
 the one to the left reciuving the debits, and the other the (^rcnlits, arising 
 out of our dealings with ])ei'sons on account,. As every amount in tlm Dr. 
 <'olunni must be placed to th(! Dr. side of the Le<lger, and every amount in 
 (lie Cr. colunni must be placcul to the Or. side, the dilleriMice betw(^<'n the 
 t<it,)ils of the Day J5ook must be equal to tho iliflerenco between tho sides 
 of the Lculgei'. 
 
 Tf these do not agree the jMtsting li.is not been done correctly, and the 
 erior or errors nnist be discovered befoio further progress is made. 
 
 THE CASH BOOK. 
 
 This book is fully descrilxul on page 57. As there are many cash trans- 
 act i<ms for which there is no Day Jiook record (that is, whicili do not affect 
 personal accounts), it is absolutely necessary to k(M'p a Cash IJook. It 
 should be tested at the close of each day's business, and hahmccA /(nma/ 1 1/ 
 .it least once a w(M>k. The difien^nce between its sid(!S should agree witii 
 the amount of cash in hand, as found by counting.* 
 
 Soimtiines it is ne(!C.ssary to enter a transaction in both tho Cawh Hook and the Day Hook. TIiIh is 
 the tyi.se wlien oash iw retieived or paid on nccimnt, as all entries affetitinK personal accounts must annear 
 111 file J>ay Hook, m onler that they may Hnd tiieir way into the Led^-er. 
 
 When cash is received or paid on a note, an entry must be made in both 
 the Cash Book and liill Book. 
 
 THE BILL BOOK. 
 
 Tn this book are entered the particulars of all notes, drafts, (fee, belonging 
 t.) the business. See page 58. By means of the Bill Book the amount 
 of other's notm on hand, as well as that of our notes outstanding, can easily 
 be determined. 
 
 * In Set I. tho cash deposited in tlio banli is regarded as cash on iiand, and nmst. therefore l»e 
 taken into consideration. 
 
122 
 
 B00K-KEEP1N(}. 
 
 andJh^ BiM Book!" 'y^'Uyf '^ *'''''" "" """'""'• "» *'"*'"^ °' '* ""'"» '"■• ""^^e in both the Day n.x)k 
 
 THE INVENTORY BOOK. 
 
 This l)<K)k is used to record tho (luantities, prices, &c., of qoods remain, 
 mg unsold at tho end of a term of business. 
 
 At least once a year every prudent business man makes an estimate of 
 the goods on hand and enters the particnilars of them in a book for tlu) 
 purpose billed tho Inventory Book. Great care should be taken to uxm^ 
 the unsold gcKMla the proper value, because if this Avere not done, the con- 
 sequence would bo tho defeat of the ultimate object in view, viz., to kncu- 
 the true state of affairs. 
 
 EXPLANATIONS. 
 
 By taking the results obtained from the Ledger, Cash Book, Bill BouL 
 nnd Inventory Book, a full Statem(mt of Resources and Liabilities can be 
 made. It the ivsourccvs are greater than the liabilities, the difference 
 represent^s the Net Worth. If, on the other hand, the liabilities are 
 greater than the resources, tho diff(M-ence represents the Net Insolvency. 
 
 No Statement of Losses and Gains can be made, but the Net Gain or 
 Net Loss may be ascertained, by finding the difference between the capital 
 at commencing and the cai)ital at dosing. 
 
 It is evident, therefore, that Double Entry is the more complete of the 
 two systems. While it furnishes information in regard to resonrces and 
 fmbilUies, It shews in addition to this, how gai^is and losses accrne. 
 
 In some kinds of business it may be desirable to keep other books than 
 those mentioned, such as Invoice Book, Sales Book, Check Book, *fec. 
 
 SET I.-GROOERY AND PROVISION BUSINESS. 
 
 , June 1, 1887. 
 
 (P«pn.na^e.p) 1^^^^^^^^^^ ^^^ ^ business, investing a s 
 
 follows . Cash m safe, |1,150; cash in the Standard Bank, $600 ; 
 Goods m store, $150 Chas. Wheeler owes on his note dated Mav 
 I, 1887 at 30 days, $64 ; J. W. Thompson owes on acct., $50 ; H 
 J. Clark owes on acct., $75. 
 2. Bou^t of Jamieson k Co on my note at 10 days, Goods as per invoice 
 Q a n^ ' ^''•"''""ting to $200. Cash sales, $34.50. 
 ,a. Sold H. C. Thomas, 100 lbs. Gran. Sugar at 9c. ; 20 lbs. Y. H. Tea at 
 60c ; 30 lbs. Currants at 6c. ; 12 lbs. Starch at 8c. ; 110 lbs. Oat- 
 
 Zf", ?%'if .u^';^"**^"" ^* ^^^•' ^— R^^^i^'^d i^ P'^rt pay. 
 ment, cash, $10 the balance to remain on account, $— . Deposited 
 
 m the Standard Bank, $1000.* Paid Cooper k Smith, per check, 
 $20 for repairs. Cash sales, $32.30. 
 
 and ^he Oh"eck BookX £ k„t toTu/Sltlt^t'he bSf ^^"^ ^°°^^" t?." '''' ''"°""*« ^^P^^ed 
 amount will ho rjia^^ 5„7u!:7C _-,„.^.^'^^°'* ** *"4 ^^^- See page 135. When a check is issupH the 
 
BOOK-KEEPING. 
 
 123 
 
 4. J. W Thompson paid on account $30, with an oixler on H. J. Clark 
 which Mr. Clark immediately pays witli cash. Sold A. M. Ratten- 
 ^"7«^^"« ";'^" 'i^lO^^^^ 40 IhH. Ahnonds at 25c. ; 2 11)h. Cloves 
 at 60c. ; 25 lbs Pulv. Sugar at 1 2c. ; 10 lbs. ]JIk. Pepper at 30c • 
 5 bars Soap at 2oc. ; 25 lbs. Java Coffee at 40c. : 40 lbs Val" 
 KaiHins at^ 14c. .f-. Chan. Wheeler remitted a draft on th.'. 
 M(.rchants Bank in payment of his ncte as per B. K, $ . Paid 
 cash for Cojtl Oil for use of store, $3.50. Bought of C. A. Davis 
 onacct.,aWritingpeskforofHce,.flO. Cash sales, $20. 
 
 (.. Deposited in the StandM,d Bank, cash, $100. Jiought of Taylor A^ 
 Son, Goods as per invoice No. 2, amounting to $340. Gave in 
 
 Tea at 60c. ; 120 lbs Sugar at 10c. ; 10 lbs. Starch at 121c. : 4 lbs 
 7. Paid cash f^- Aclyertising, $10; for Fuel, $2.50. Deposited in the 
 
 ^' ^""""tm^ f^"""- ^'"'"''''' ^''"'^' ""' I^^''- ^'^^-^'^^^ ^"- ^^ -mounting to 
 
 ^400 Gave in payment my check for $200, and my note at 20 
 
 ^ ^ ^^^I'y^^'^^^^^^-'^^^eA—. Cash sales, 21.80. .> e aw j 
 
 9. Sold Lachlan MacLean, 60 lbs. Cheese at 1 5c. ; 45 lbs. Currants at 10c. • 
 
 2 doz^ bars Soap at $1.50 per doz. ; 15 lbs. Japan Tea at .SOc. 12 
 GOo 1?11 p1 '^'i' ^ ^^^"^ ^^^ "^•^•)' '^' ^•^'•- > ^ lt,s. Cloves a; 
 
 CS^^'^S^.'''-' ''' note .a 2 ninths for bZlc^:^: 
 
 10. Paid C. A. Davis on acct., cash .^10. Received from H. C. Thomas 
 
 on acct., an order on A. S. Murdoch, for $30. Paid c-tsh for S •. 
 tionery and Postage, $1.60. Cash sales, $21 40 " 
 
 «ffiO r""'"'' ^^'"'''^''' ^"""^'^ ""' P^^ ^'^^-^'^^^ N«- 4> amounting to 
 
 on acct. Sold W. H. Miller on acct., 30 lbs. Butter at 18c • !•> 
 lbs. Sugar at 9c., $_. Cash sales, $25. ' 
 
 '^'^TT ^'''""^•""'^ °^'^1^^ f'-^^'o^- ^^f 8- J>- Hahn, in goods, $25. W. 
 $25^0 ^'''''' '''' ""''*• '''''^' ^^"^"'^ '"* ^^- ' •^' ^— ^^«h sales, 
 
 ^'' ^T240'^ S^tTl^TT"' ^""/!, "^ P^^- ^"^'«^- ^^- '5^ -mounting to 
 ^240. Settled with him m full per check, _. Cash sales, $29!l0. 
 
 Inventor]/, 
 Mdse. unsold 
 Office Desk .'.'.'.'.'.'.".'.'.*.' %I,0oo 56 
 
|i ;1 
 
 124 
 
 UUOK-KKKI>IN(i. 
 
 DAT BOOK. SET I. 
 , June Jnt, 1SS7. 
 
 ( i-M|.ii-» immc hrre ) /,„^ ff,;^ ,/„,, r„),n>ini,',;l fhf Orucery 
 
 / Pupir* name \ /I., 
 
 By the j\tlluu'iit[i iiwi stmiiil ; 
 Cittih in .•<({/>■, 
 
 " i« Shtii(/iir<l Hunk, 
 Mthr, (HI IkiikI, 
 C/kih. Wfiahr'n notf tin ;«'/• //. //. (!^ 
 J. M'. Thi)mpn(,n on ajc, JiO 
 
 //. J. i'Uirk- on ale, T'/T 
 
 f.10 
 
 V. IF. Thorn pHoii l)r 
 
 To JiahiDi'v from old n i;. 
 
 ' II. J. rjiirk l)v 
 
 To lialani')' front, old ;tiC 
 
 : //. r. Thomas l)r 
 
 j To 100 Ihs. Onni. Sitj/tir (a Dr., 
 i " i.'0 " }'. J I. Tea (ill (JUC, 
 " 8(f " CurrantnOa He, 
 " /.' " SfnrrhOi Sr., 
 " 110 " OalmailOi ik\., 
 " .W " nnMer@lSe., 
 Cr. _ 
 
 9'.> 
 JJ 
 I SO 
 
 nil 
 
 (I GO 
 5 40 
 
 Fiif Citnh, in jimi, paynirnt 
 
 J. ]V. Thoni/ffion (^r 
 
 By Can/i on. ajr . . . , 
 
 ■ r..L Davis Cr 
 
 By Writing Denk/or Ojicc 
 
 II. C. Thomas Dr 
 
 To SO IhM. B/l: TeaataOc, 
 
 " 120 " Snifdr (ii>, JOc, 
 
 " 10 " Starch (?) '2)iC., 
 
 " 4 " NntnwjHCai 7-'ic., 
 
 " r>0 " mce(di.5r., 
 
 " ;^J " Cheese % 10c. , 
 
 9 IS 
 1:2 
 1 25 
 S 
 
 '^ r,o 
 4 00 
 
 Aniomtts forward. 
 
 J)r. 
 
 .',0 
 
 /.» 
 
 .1.1 
 
 40 
 
 i'oi 
 
 SI 
 
 ' Tliis name appears in the first entry. Why htui It to he repeated here. 
 
 rv. 
 
 sosn 
 
 10 
 
 ,V) 
 
 10 
 
 US9 
 
nooK-KRKi'imj. 
 
 ll!/> 
 
 To Cash Wiffii/mvui 
 
 (\ ./. Bavin /),. 
 
 To Canh on. a/r 
 
 • /. A'. Afurdoeh /)/• 
 
 To If. a noman' Or,frr on flint 
 
 ff. C. Thoniafi Cf. 
 
 Jiij an ort/fT on A, .V. Murdoch , 
 '/Vy.*. Cameron d- 
 
 Jiy Mdnr. n/i per Invoice JVo. 4 
 
 7V. - , 
 
 To Check, jtart jmjment 
 
 TK If. Miller J)r 
 
 To ,10 lbs. Buffer (di J.Sc, 
 " J^ " Su(/ar@ffc.,' 
 
 6 /ff) 
 1 08 
 
 13 
 
 Jas. CanieroTh J)f> 
 
 To payment of hia order in nulw. 
 
 W. II. Miller Cr 
 
 liyScorda Wootl@l.7r, 
 
 Jas. Cameron Cr 
 
 By Mdse. as per Invoice No. 5 
 ■ Dr. 
 
 To Cash. Check on a 
 
 i 
 
 yy 
 
 III 
 
 :to 
 
 too 
 
 /,S 
 
 S76 
 
 676 m 
 
 an 
 
 100 
 
 .T 
 
 a/tO 
 
 Vf 
 
 2572 \50 
 
126 
 
 1887. 
 
 BOOK-KKIiFlNU. 
 
 CASH BOOK-SBT I. 
 Ciiah, 
 
 Juttf 
 
 • < 
 
 • < 
 
 1 1 
 *l 
 <l 
 << 
 
 Juhv 
 
 s 
 
 4< 
 l< 
 
 A 
 «« 
 
 <( 
 
 «< 
 
 6 
 i( 
 
 <( 
 << 
 
 i< 
 
 ^3 
 
 amount in Safe. . . . 
 
 Bank ....'.'.'.'.'.'.'.'.'.['.'.'.'."[ 
 
 M(Uf. Sales thin day '.',..', 
 
 H. C. Thomas, on ajc '.'.'.'.., 
 
 Coajter d' Smith, for rfjHtitjfcheckJ, '. '. '. 
 
 Miim'. Sales this day \\ 
 
 J. W, Thompson, on a/f ] 
 
 Chas. Wheeler's note as jtei- B. B. . . ..[ 
 
 Exitense. Coal Oil for store . .' 
 
 Afdse, Sales this day . . . 
 
 ' ' Bought of Taylor ,(• Son f check) 
 
 *' Sales this day 
 
 By Balance ,,[, 
 
 (1 To 
 
 7 
 II 
 
 11 
 
 11 
 
 To 
 
 S 
 II 
 
 By 
 
 To 
 
 9 
 
 II 
 
 II 
 
 II 
 
 W 
 II 
 
 By 
 
 II 
 
 To 
 
 // 
 
 II 
 
 II 
 
 By 
 To 
 
 June 
 
 Balance hrnnfjht down . . . 
 
 Efpense. Fuel, $-2. 50 ; A dvertisinn, $10 '. 
 
 (•'"P" « ■""»'• ) A momU withdrawn . . . 
 
 Milse. Sales this day 
 
 Boiiyht of A lex. Stewart (check j [ ' 
 
 " Sales this day 
 
 " Sold L. MacLean 
 
 " Sales (his day !!!.'.!!."! 
 
 C. A. Davis, on ajc. \ _\ 
 
 Kiiitense. Postage and Stationery '..'..".' 
 Mdse. Salts this day 
 
 " «i II ■ • 
 
 Jas. Cameron on a/c (check) .......... 
 
 Mdse, Sales this day 
 
 By Balance ... 
 
 13 
 
 14 
 II 
 
 15 
 11 
 
 :U 
 
 To Balance brmght down 
 
 By Expense. Drayage ....... 
 
 To Mdse. Sales this day 
 
 By Jas. Cameron on a/c (check) 
 
 To Mdse. Sales this day 
 
 By Balance 
 
 Dr, 
 
 1130 
 
 600 
 
 34 
 
 JO 
 
 S3 
 SO 
 64 
 
 SO 
 
 so 
 
 1970 
 
 1607 
 
 29 
 
 21 
 20 
 12 
 
 21 
 
 1410 
 S7 
 29 
 
 1476 
 
 60 
 
 M 
 
 .SO 
 
 so 
 
 GO 
 SO 
 50 
 
 40 
 
 25 ] 50 
 
 1763 10 
 
 20 
 10 
 
 30 
 
 Cr, 
 
 io 
 
 3 
 340 
 
 1607 
 1970 
 
 U 
 29 
 
 200 
 
 10 
 1 
 
 100 
 
 14 to 
 
 1703 
 
 .50 
 
 SO 
 
 30 
 
 50 
 
 60 
 
 10 
 
 3 
 
 275 
 1197 
 1476 
 
 40 
 
 90 
 SO 
 
I100K-Kl!:Ki>lN0. 
 
 127 
 
 so 
 
 .to 
 
 so 
 
 so 
 
 
 60 
 
 10 
 
 40 
 
 90 
 SO 
 
 When 
 Rticeived. 
 
 
 •Oil 1 
 
 *i»j»j 
 
 ■fl 
 

 •Eiiii 
 
 
 1 
 
 - 
 
 i 
 
 128 
 
 Clark, H. J. 
 Cameron, Jos. 
 
 Davis, C. A. 
 
 ' See page 30. 
 
 BOOK-KEEPING. 
 
 INDEX TO LEDGER.* 
 
 B 
 
 129 
 130 
 
 I2d 
 
 B 
 
 F 
 
 G 
 
 Murdoch, A. S. 
 Miller, W. H. 
 
 M 
 
 130 
 ISO 
 
 N 
 
 Q 
 
 B 
 
 S, T 
 Thompson, J. W. 129 
 
 Thomas, H. C. 229 
 
 TJ, V, W 
 
Dr. 
 
 BOOK-KEEPING. 
 
 LBDGEi^~SBT I. 
 
 ( Pupil's name. \ 
 
 129 
 
 1887 
 
 
 June 
 
 7 
 
 It 
 
 15 
 
 To Cash. 
 
 Balance* , 
 
 20 
 2100 
 
 2129 
 
 By Sundries 
 " Oain* . . 
 
 2089 
 40 
 
 2129 
 
 H. J. Clark, 
 
 1887 
 
 June 1.5 I Bu Balance* 
 
 75 
 
 'T. W. Thompson. 
 
 ■H. C. 27107 Has. 
 
 1887 
 
 
 June 
 
 S 
 
 <( 
 
 6 
 
 C. A. Davis. 
 
M 
 
 ¥ 
 
 130 
 Dr. 
 
 BOOK-KEEPING. 
 
 A. S. Murdoch, 
 
 1887 
 June 
 
 10 
 
 ToH.C. Thomas 
 
 30 
 
 SO 
 
 18S7 
 June 
 
 15 
 
 By Balance* 
 
 J as. Cameron. 
 
 18S7 
 
 
 June 
 
 11 
 
 i< 
 
 13 
 
 n 
 
 15 
 
 To Cash. 
 
 c< 
 
 100 
 
 25 
 275 
 
 400 
 
 1887 
 Jtine 
 
 W. H. Miller. 
 
 1887 
 June 
 
 11 
 
 To Mdse 
 
 1887 
 June 
 
 IS 
 15 
 
 By Mdse. . . 
 
 By Expense . 
 " Balance* 
 
 Led}Ser Balances. 
 
 Cr. 
 
 
 so 
 
 so 
 
 
 
 160 
 240 
 
 400 
 
 50 
 98 
 
 48 
 
 Personaij Debtors. 
 
 \ 
 
 Pkrsonaii Crbditors. 
 
 H. J. Clark 
 
 75 
 
 m 
 
 36 
 30 
 
 2 
 
 51 
 98 
 
 49 
 51 
 
 PuviVs Salance 
 
 2060 
 
 
 J. W. Thompson 
 
 Total Credits 
 
 
 H. C. Thomas 
 
 
 A. S. M trdoch 
 
 
 W. H. Miller 
 
 
 
 
 Total Debits 
 
 164 
 
 1895 
 
 
 Excess of Credits from Day 
 Book 
 
 
 
 
 Proof of Posting 
 
 2060 
 
 2060 
 
 
 * Red ink. 
 
 
 22. 
 23. 
 
 <u 
 
 ■xi tI 
 
Cr. 
 
 30 
 
 
 30 
 
 
 
 
 — 
 
 
 3 
 
 3 
 
 50 
 98 
 
 6 
 
 41 
 
 
 
 liOOK-KEEPIN(;. 
 
 Kesources and UaUlUies- 
 
 131 
 
 Resources. 
 
 LlABILITlBS. 
 
 Accts. Receivable . 
 Bills Recdvable . 
 Mdse. [Bat. Inv'v) 
 Cash ... "" 
 
 Office Desk ..'.'. [ ] [ 
 
 49 \\Bilh Payable 
 
 Pupil's Net Capital 
 
 05 
 56 
 90 
 
 400 
 2100 
 
 Statement of Loss and Gain. 
 
 PuplVs yet Capital 
 
 Investment 
 
 Pupil's Net Gain 
 
 2100 
 
 2060 I 
 
 40 I 
 
 H.v,It. i„ the Ledge ":!;:* te MexT"' *'™'^"'^ "* *''" ''°^^- ^he 
 
 SET I—Continuea. 
 
 at, lOn • 1 n xr V ' Z ^"'^- ^a<^meal at 6c. ; 5 lbs Starch 
 
 at luc, _, J- lb. iNutmeifs at 70c • on IK^ nu^ ' ' \. ^tarcn 
 
 Raisins at 10c. $_ vlidl'J Tl !• -To ''^ ^•^^•' ^^ ^^«- 
 $29.60. ' '^ ^"""^ advertising, $3.70. Cash sales, 
 
 18. Deposited in the Standard Bank .« ion TT T ni i 
 
 cash, $20. Sold Robert nmr!^ . ^^'"'^ P'*^^^ «^ ^^'««"»t, 
 
 Tobacco at 60c 25 lbs TemOc" 100 7'^ ^' '^,^^^^' ^ l^^ 
 at 10c. ; 50 lbs. Brown W at 8c -^n ^I'f .^^'^^"^^ted »ugar 
 Cash sales, $25 70 ^"'''''^ ''^ ^^- ^ ^ ^^s. Raisins at 10c. $-. 
 
 percoixi $_! Ca;hs^i,7l9 8o'"^^"""'"^^^ 
 
 Ino P ''"'' ^ ^"- ^"«^^^' ^« P^'^ Invoice No 6 amounting t 
 $130 Gave in part payment m/note at 2 inonSis CTo I ^ 
 per check my note favor of T..v • T -^"^"""^"s ror !j550. Paid 
 
 time ovenlue'^at sV Fa°i rf rtr**no^''-V"."' '"'^'■<'^* f"-- *'- 
 sales, 130.25. '° "' *^'"'- interest, 26c. Cash 
 
 23. Paid for a tj-ifo fr.., ^«! ^ ' \"', ""n ®^^*^^' $2i.9u. 
 
 t^m^,^^:^c,TJ^:li!l^■ ^»'" «"- * CO.-S orfe. 
 

 132 BOOK-KEEPING. 
 
 24. Sold A. C. Morrison on account, 3 lbs. Tea at 50c. ; 24 packages Sal- 
 
 mon at 15c. ; 30 lbs. Granulated Sugar at 10c. $ — . Cash sales 
 $22.80. 
 
 25. Received from H. C. Thomas on account, liis check for $20. De- 
 
 posited in bank, $50. Paid James C. Andrews for repairs, cash, 
 $3.50. Cash sales, $41.75. 
 
 27. Sold A. H. Hardman, 40 lbs. Tea at 50c. ; 90 lbs. Brown Sugar at 7c. ; 
 
 12| lbs. Ginger at 40c.; 60 lbs. Ham at 14c.; 40 lbs. Breakfast 
 Bacon at 13c. ; 30 packages Canned Salmon at loc. ; 25 packages 
 Canned Mackerel at 13c. ; 100 lbs. Oatmeal at 5c. ; 12 jars Canned 
 Fruit at 20cts; 20 bars Soap at 10c. ; 2 boxes Matches at 25c. 
 $ — . Received in pfirt payment his check for $50. 
 
 28. Received from H. J. Clark an order on S. W. Hall for $40, which' Mr. 
 
 Hall immediately paid with cash. A. C. Morrison paid on acet., 
 cash $5. Cash sales, $30.35. 
 
 29. Deposited in bank, $100. J. "VV. Thompson gave me his note at 30 
 
 days to close his account, $ — . Cash sales, .*'28.70. 
 
 30. Paid clerk's hire, $20; freight, $16.40, and drayage, $10 per cheek. 
 
 Cash sales, $36.90. 
 
 Inventories June 30. 
 
 Goods unsold, vahied at $712 
 
 Safe 120 
 
 Office Furniture 9 
 
 Kesult.— Net Capital, $2,065.10; Net Loss, $46.90. 
 
 EXERCISE I. 
 
 March 1, 1887. — Invested in business, cash $200. 
 
 2. Bought of J. McHardy for cash, goods invoiced at $120. 
 
 3. Sold Thos. Smith on account, 5 bbls. Flour at $5. 
 
 4. Paid cash for advertising, $1.40. 
 
 5. Sold A. Brownlee for cash, 40 bush. "Wheat at 80c. 
 
 7. Sold Thos. Smith on account, 20 bush. Barley at 45c. 
 
 8. Bought of A. Hilker on account, 10 bbls, Flour at $4.50. 
 
 9. Thos Smith paid on account, cash $10. 
 
 10. Gave A. Hilker on account, cash $20, and' my note at 10 days for 
 
 balance, $ — . 
 
 11. Paid clerk's salary with cash, $10. 
 
 Goods on hand valued at $112.60. 
 
 [a) Transfer to the proper books as in Set I. ^ /> 
 
 (6) Prove the correctness of the Posting. ^^^ ' 
 
 (c) Make out a Statement of Resources and Liabilities. ^-■ 
 
 EXERCISE II. 
 
 April 1, 1887. — Commenced business with cash on hand, $200; mdse. in 
 store, $300 ; Y/m. Jones' note drawn Feb. 1, at 60 days, for $50. 
 I owe John Bark well on account, $30. 
 
BOOK-KEEPING. 
 
 133 
 
 2. SoldWm. Young for cash, 10 lbs Teaat, 70^ • 'U\u t^ 
 
 Deposited in the Mer'chanW B^n^ I Ho P !i ^'•^"- f "gj;^ at 9c. 
 $4.50; Fuel, |3. ' ^^^^- ^^'^ ^^^^ ^«^ Repairs, 
 
 4. Sold H. Corbett on his note at 10 days, 40 lbs Raisins at 1ft. • Qn ^u 
 
 Tea at 60c. ; 20 lbs. Rice at 4c. "''• ^ ^^ ^^''• 
 
 5. Gave John Barkwell on account, mv check for «9ft t> • i i- 
 
 (a) Make the proper entries of the transactions. ^ ' ^ 
 
 (6) Prove the correctness of Posting. 
 
 *"^ ^£:^s. " ®*'"'"* °* ^'^""■■"'^ ""-J J^-W"*'^^ ''"d oIo.e the 
 (d) Find the loss or gain. 
 
 EXERCISE III. 
 
 April 11, 1887,— Commenced business with a cash capital of tl ftftn 
 Deposited in bank, $600 t-'tpitai ot !t?l,000. 
 
 14. SoldThos. Murray, 50 lbs Tea at 4-^o Vi^.^- a • *~' 
 
 16, Lost a $5 bill. 
 
 19. Sold S. H. Mann on account, 3 bars Soan Rt 10^ . ta n ^t \ 
 
 Syrup at $1.20 ; 40 bushels Potatoes"' iSc. %1-^^ ^^"^"^ ^^^'^ 
 oo S^!j ^°^ ^ "^""^^^ ^^*h ^^y check, $5.50. ' 
 
 -3. Paid my note in favor of C. D. Spooner with cash, $-. 
 Goods on hand valued at $267. 1 7. 
 (a) Enter the transactions into the proper books. 
 (6) Make out a statement and close 
 
 C. ^D^. sIooL'.'' "'*' "^^'^^' '^^"^ ^^- ^--y> -d the one given to 
 
 (;f) How does a dealer find the value of the goods on hand 2 TTow *. 
 IS this usually done in actual business ? ^ ^"""^ ^^*^" 
 
 (e) What is meant by balancing the Cash Book ? 
 
 
1:M 
 
 IK>(>K-KKK1MN(4. 
 
 SBT II.— SINGTiW WNTUY. 
 
 A...»^-,« ns,',f. Dili) nook\ (\»,y/» lii)i)h\ IWl fhok, ,ttut hifffff. 
 
 HBCOliD OF TUAN8A0T10NH SUIT II. 
 
 _-. , ^far,'h /, !SS:. 
 
 (^^mnHM^<>o.^ Imsiiios^ \\\i\\ <li(» following invsoun-.'s : ChhIi ou Ii mmI, 
 
 $H)0(); nulsi>. ill sloiv, JjiSSOO; N. ( 'ImiKp's t\o(,. of .-^tCOO ,.1 I U\ns.[ 
 ih\\0{\ .];\u. 1(), 1SS7. (5»>o. I.O(>«Ih owes moon Mt'counl, $S(I, ('I'lio 
 pupil must .i>iv'> Ininself nv.lit, iit <ho Dny Hu.ik t'or <Im» ninnunt, 
 lio invests, .\,» <Milrv will l.o in.xlc in <' ' ■ !« liu(»i< (uul iiUo in 
 Iho Mill n.>(»k,) 
 3. SoM L. S. K.>i(li, ou Mocount, lOO yds. Minnrl ,• .')(),•. ; 'J ( Silk Nrck- 
 
 (iivs nt. ()(V. ; 7 vds. Twco,! lU »i?l.'J(). 
 r». n.ni,s;h( of M. I\|.M(li,Ms on n<><'oun(, .-in invoi,M> of ^o.mIh .'inionnliiiu (o 
 
 .^l.'U). (Why is \l no|, ncocssiiry to gixc (li(> itiMns Ikm-o?) 
 7. S(>l«i (J(>o. hocds, 10 y.ls. Silk at, $\.]o'\ 'M) yds. CoHon )i( lOc. }{.>. 
 (vivod in part paynicni, rush, S'JO. (I<:nl(>r in th(> D. |l. niul ( '. W.) 
 S. Paul oMsh for Hopaiis, .fr. ; (\«,1 ojj, sail. (K„(,.r in (lu> (\ II. Whv 
 
 not in tho 1>. U.'l) 
 10. n.^posii.vl in tho Molsoti.^ ?l'uik, «-Msh, |!S00. (if,, |{,,iik A<-,'oinit is' 
 koj>t, what, ontry? Show why an aorount, with a. hank \ni\\ Im> 
 n\i;anlo(l as a ptM'sonal account.) 
 1L\ Sold \{. Ciwnvvou on his note at. 10 days, 1 I yds. Mroadclolh at $1.7.'i: 
 S yds. FarnuTs Satin at A.V. ; 2 'u/.. Coikirs at. f'J.r.O. (M„(,«r ii," 
 tho W. \\. Why wol in th«> I). H. or V. |{. /) 
 \\. Paid for A<ly(M-tisi"n,if, with cash, .f'J.TiO. 
 l.\ Hcccivcd from (ico. Kccds on account, casli $50. 
 17. nought, of C. Turnhull on my nolo at. 'M) d.ivs, an Tuvoico of i.oodM 
 
 amtmnting to $125.50. 
 10. KoociytMl from L. S. Keith, his check in full of account, $— . De- 
 posited i!i the iMolsons Hank, $1S0. 
 21. S,)ld I). M. Malloch 21 yds. Scotch Twectl at. $1.10 ; (',5 yds. Shceliuir 
 at rtc. ; .'U) yds. Hed Flannel at a5c. ; l'2 yds. Irish 'Lint-n ai l(t(^ 
 Keceiyed in j)art paym«>n( his note at 'M) days for $20. (l-lntcr in 
 the D. Ii. and H. H. Why?) ' 
 
 21. Paid cash for Wood, $;{.r>0 ; Express charires, $1.25. 
 20. lieceiyed from (Jeo. Leeds an order for $10 on S. \\\ Daw.son, wjijch 
 by his reijue.st is passed t(» his aeeount. ((u'o. li(>(Mls yives us value ; 
 thejx'foro he nuist bo credited. S. AV. Daw.sou assumes a «lobt; 
 then^fow he must be debited.) 
 30. Paid clerk \s salary with my chock on tho ]V[olsons Pank, $25. 
 (uhhIs on hanti valued at $8«);V80. 
 Posult.— Not Avorth at, olosinjr, $2,491.05 ; N.<fc (Jain. .$1 1.05. 
 
( 
 
 nonit KKKPlNcj. Iijfj 
 
 TO OlIANOra FIIOM HTNGLB TO DOUliljlil IQNTRY. 
 
 Inonlor <o uiHlnHl,,,,,! ,.|,-m,Iv l.uw io chnu^o fn.,n Hi„«ln fn |»n,il.l,. 
 Kifiy, MM.l n,v. ivrm, fl.o pupil „m,m(, f„l|y rMniproluMHl (l.n vv,,\ ,limMr„.n 
 hi' w.M.M < ,o fw„ «v««o„,M vi^, <lu,i, only /.r.,m.,/ a M.n(M m,o kcpf, in ,„ 
 
 «I'«o,«,uh| ,.ml,(o,.H; |,y n.p ullu.r pp.MnnM ,,,,.1 M.inKH. Vl.o p„pil will 
 Ihoii Hrn lluit, in onjor i., ,.1.m„ko fr,.n, HinKin in iMul.lo Knl.-y il, i^ nrmsM 
 
 ImMooonnrH.Ml xnlj, ppPMonnl n „„(m, IIhvsm bninK alnvMlyrnprPH. 'ntniL 
 
 forn.,! io |,ho prnpnoior'H ,uvnmii, aftor AvI.i.l,, if il.o w.rk i« oomM.L (|,o 
 LiMJ^Pr will lip in (>(|tiilil)iiiiiii. » ' 
 
 H in n.Mlnu.H.y (o ,.|om,. 1|„. (...J^r,.,-, I„il, in nul, m.JIv I.Mp..rfanl, i.nloHM, 
 
 nMn.n l,nlan,v,s rm. all ho fuun.l willnMif, ,.|uMinK 'l.o houb.. Of nM,r«M 
 
 (li.'y Will I.., ,.|oHo.l, It a n..w H..I, nf lM,okH iM lo l,o nH...| afl.-r Mm rhaiiKo, 
 
 Tl.ni.upil will now l„,|<,. nil M,n halancu^H fnan flin M„l..in..nfM on pn^-M 
 
 •'•'"•"I I. U an.l wnsk Mhi h.vmmhI part, of Hnt, 1. ),y Donl.ln ICndy. Ah Im- 
 
 .MM alnvMly ,lono ,( l.y SinKlo Kniry, 1,,. will IIiuh «no clrarly Wu'mw.w.s 
 
 iK'lwccn I ho two HyMlcwiiM. » 
 
 ;i^o n,.w ajrounts I,,, I,,, op,.,,,,! ,„ I hin particular caK,, arn r',,.A. /lA/-.., 
 
 I.. MH, I. tlip ,.aHh ,InpoHit,,M| in t|,„ |„,„|, i, ,,.^.,,,,i,.,| ,^, ,,,,,|, „„ ,„,,„, 
 Am Mil , ,>poH,(M ,„■„ p|a,,M| hy tJio l,anl< oIlL-ialH to th,. .wn.lit, of tl.n clMpoHJ- 
 <;••• •>. ... w.nl< I'asM |{ool<, an.l /m tl,., ..onn(,Mf.,il ..f tho lant, v\uH'k \Lu'^\ 
 MlunvH tJi,. hnlnn.M. .h^poMitiMl, il, is nnn,..MHary l„h.,r (.. k.-op a l„tnk /u.-onnt, 
 
 III tJHl liC.l^rcr. ' 
 
 Hon,,, hook l<,.,.,H.rM ,mm1<.. „m,, of „, (!„«|, p.„„i, |„„vinK on tin, (!,-. Ki.JM a 
 
 «;•»">'"" t;;>' '/"/'''s///., m,.| on tlm |>r. Hi.lo .„... f.,r tl.o ain.MinlH of ..iH-.-kM 
 
 MHU«..I. 1 1„, , ,(l..,vn<.., hHwocn tlM-s., will of ,.o,„.„,, hI,.w IIm, halanc- to 
 
 thoonMJit, of f ,o .l,.a|,.,> a,t the bank, pn.vi.l.Ml ti.e .■InvkH l.avo all la...n 
 
 proHonicd an.l lionon..!. 
 
 TO OHANQB PROM DOUBLE TO 8INQLE1 ENTRY. 
 
 T<M-l.'.,nKc^ a s.-t of hookn from Donhio to Hinglo FOnfry, <.o,npU.tM tl.o 
 poHt.mg an.l oI.,ho a! |,|„, arcMinlH, c.x.vplinK ♦Loko k.-pt, wiM, ,,r,Ln.. If 
 tliol.ookHaro..l.,H...l ni tJ.o tJin,, of „,„kinK Wm chan^.s n, .a ^n only ♦!„. 
 l..>rHoi.al ,M....M.ntM Tlu, h,.Jan..o of ohkIi on !,an<l will la, .a'rri.<i to tin ' 
 UtH h l..,.,k, an.l tJ.af, of ..tJu-rM' not.-M on hand, m w.ll a« of our not., on.. 
 «tan(ling, will bo ontorud into tho JJill l5..ok. 
 
>* 
 
 136 
 
 llOOK-KEEPINO. 
 
 CHAPTEB IX. 
 
 BANKING. 
 
 When a person wishes to open an account witli a bank, ho must furnish 
 satisfactory evidence t)f his hon(\sty and trustiness in regard to business 
 transjictions. This being done, \w will bo ret^uired to sign his name in the 
 pro})er book. The object of doing so is to enable the bank officials to 
 t^^st any doul>tful signatures that may l)e attached to checks or other 
 paper presented for payment. 
 
 Drpodt SHps.—Thoae, as W(>11 as all other necessary blanks, are fur- 
 nislu'd by the bank. The person making a deposit will till the slip as 
 indicated by its form, and hand it along with the money or other value 
 •leposited to the Teller. If found correct it will be initialed and passed to 
 the Ledger-keeper, who will place the amount appearing on it to the credit 
 of the depositor. 
 
 Jiank Pass Jiook.—^Yhon. a deposit is made the amount of it is entered 
 into this book. At the end of every month the Pass Book should be 
 handed over to the bank to be balanced. No entry is made in it by any- 
 one but the proper bank official, as it is the depositor's voucher for all 
 values given to the bank. 
 
 When a person does not wish to open an account with a bank, but 
 deposits a sum merely for safe-keeping, he may draw a check for the 
 amount, payable to himself, and get the banker to mark it "good." The 
 bank is responsible for the payment of an accepted check on it. Tf the 
 money is to be deposited for a considerable length of time, a certificate of 
 deposit should be taken for it. 
 
 Check Book. — This book contains forms of checks to be filled out as 
 they are needed. ^ The particulai-s should be entered on the stub before the 
 check itself is written. Care must be taken to enter the amounts so that 
 no changes can be made in them. The balance deposited should always 
 appear on the stub, as this will save trouble when making out checks. 
 When the one who issues a check wishes it to' be evidence of payment 
 made to the person in whose favor it is drawn, it should be made payable 
 to the order of such person, as he will have to indorse* the check before 
 the bank will cash it. 
 
 Tf a check, on being presented within a reasonable time, is dis)ionored 
 by the bank, it should be returned to the drawer, as no payment is made 
 owing to it. 
 
 If a check is not presented for payment within a reasonable time after 
 being received, and if it is rendered valueless on account of such neglect, 
 the holder must bear the loss. 
 
 *The indorsement should be on the back- 
 generally regarded as the top of the back. 
 
 written crosswise. The l(ift-hand side oT tho t\oe Is 
 
UOOK-KKKIMNd. 
 
 137 
 
 In n.akn.g paymont. with checks, it is oft^n woll to got then. ccrtifU.l 
 If mu eat to a t^orson at n chstanco is n.ado by chock it „.„... 
 HO as to oovor the cf,ht a.ul a connnission of 1/ 0,a ^s u ul^^^ 
 tor cashing chocks issued by other banks) fUnk 1 ^ ''"V«" i/ 
 
 for n.uking ren.ittances. A <lruft f< fSi on ^'"^^^^;"•" ''"^''ly used 
 
 <me for a sun. greater than ^00 // nf .f /"'' ^'''^'''^''y ''""^^ 25,,. and 
 l>mnch of the bank vlic iLed f £ . 'n Z '"Y ' ^' '''"'" '« ""^ '* 
 P--nted for payn.ent!":^ ^^^-n^l^; ^ d ^, t<l X' u'"^^ '' '^ ''• '"■ 
 whtch will be charge<l by the bank cashing it ' '^'" connnission, 
 
 xl.i.ul.1 |.ia to mcl, ,/.,lip „f m,VZL,i„^H % ;,•''"'''''■'''''»*>'•'"' 
 Tak„tl,i» „fn„.f,„,, ,„■,*, „r'nv * ' ',". f"l "wiHK, "N„ Pr„te„t. 
 
 ""tes bu.k witi,.,«t p,'.;;,:;' p,:;Lt <^ig:r« *'"" *'"■ "^""^ '""^ «■'' "'- 
 
 PRIVATB LEDGER. 
 PETTY CASH BOOK 
 
 in keeping thi. book^ri:t;:i;".^rrc^f B^?' ''"" "'■"■■* "'■■*-' 
 
 PETTY LBDGEE. 
 
 Care n.ast be X„ ,Tto , n™ tC ""'•■"";"' ^'*. *'"'" '" *'"» •""*■ 
 and o„e i„ the ,„ai„ ulU^-Ci h r^^^TjTuc" ^ '«,.fr^*^''«^" 
 co„fu.„„. To .void thi, the indexing^ .LLr't"; pn^ 'a^tindfd'tr "" 
 
 SUNDRY DEBTORS ACCOUNT 
 
 r.Siv:.ho^™T4^?*pu':^.h:^bj: ntt' -^h^-t- ^r"--"-"- -'«■ 
 
 
538 HOOK KKKI'INiJ. 
 
 should be ()pouo<l with them in tho rogul/ir way, and their account in tho 
 Suiuhy DebtorK Account hh«»ukl )m chmvd into the new one. If this 
 were always adhered to, iinich trouble might bo /ivoided. 
 
 HOW TO DEAL WITH BAD DEBTS. 
 There are various ways of deaj! , with bad debts. Some carry th.in 
 into what is called the " HusiMMidcd List," leav ing the accounts open.* The 
 metluHl that seeins most satisfactory is to open a Had Debts Account and 
 charge it with all amounts which cannot })e collected. Close this account 
 into Loss and Gain. Tho advantage of this methcwl is that the sum written 
 off each time the books are closed is shewn clearly. When any of tli.-c 
 amounts are collected, it will bo necejssary to hold whatever is received 
 Dr. and make Loss and Gain Cr. Jf, liowevor, any of these amounts aie 
 received while the Bad Debts account is open, credit must bo given t(. it 
 instead of to Loss and Gain. Any amounts collected and credited to Loss 
 and Gain may be entered with red ink in small figures opposite the suni 
 expressing the whole amount of bad debts when the account was closed. 
 By doing this the actual amount lost in this way for any particular year 
 can be seen at a glance, and tlui confusi<)n of mixing the bad debts of one 
 year with those of another is completely avoided. 
 
 CROSS ENTRIES. 
 
 Cross entries are made in order to correct errors. To siiew tho use «»f 
 such entries, it may be best to consider a few examples. 
 
 Suppose that you gave L. Mason your check for .$100 on account and 
 that you made the entry : f 
 
 Z, Mason Dr $fOO 
 
 To Cash ^JOO 
 
 This would be corrected by the cross entry : 
 
 Cash Dr $100 
 
 To Bank $100 
 
 It is easily seen that this produces the same final result as the proper 
 entry, viz. : 
 
 Z. Mason Dr $100 
 
 To Bank $100 
 
 Cash was incorrectly credited, therefore it must be debited. 
 
 (2) Suppose L. M. Hespeler paid on account his sight draft on J. Smith 
 for $50, which Smith honors by giving Ids check, and that you made the 
 entry : 
 
 * In ord'ir to avoid embarrassment, if a person, whose account Is not considered good, should wish 
 to see ifc in the Ledger, the closing entry may be " By Balance," with a private mark attached, to 
 indicate that the amount is transferred to the Ua/l I)«'bt-9 Account^ and not considered a resource. 
 
 t It is presumed here that a bank account is kept in the Ledger. 
 
BOOK-KKEPIVC. j^jv 
 
 ^""'^ ^^r ^SO 
 
 To J. Smith Hi^.-o 
 
 You woulfl cori-ect thus : 
 
 J.Smit?, J)r ^^^,^ 
 
 To L. M. Ilespelfr , . .^rtO 
 
 lourse may be a,lopte.l :1 '"•""""" tlw"'*""" to a new „„«, tl.o following 
 
 1. Mnik the old one " Lerk'er A " nn,l *). „ -, , 
 
 on,,.! ^ , J^eiifeer ji and the new one " Ledcer B " 
 
 T^F^X:z:T^::^it^^' ^' - ''"" - - % '"^'-- - Le,i,e,. 
 
 "'hhickink. I entry liy or "To liaUnce from Ledyi.,- A," 
 
 '>. Treat all the accounts in a .similar manner 
 
 MANUFACTURING. 
 fZ'MeSZi7:::^'Z^l t ^^ -"i^" '■\>'"«"e, he should 
 
 for the proceeds of sales, l* H i de'irlbt fo't °* *''?r"' ""^' <''•«'" " 
 Labor account, &c., these will be '"""^.'e t" keep a Material account, 
 hefore balancing the booS. '^ "'*° *''" Merchandise Account 
 
 Tn'lrilsMrtrCe^:^?' *''^ «r'^'^ "^ i.omeman„f„ct„re. 
 that he .nanufacturerhe w ^I" "n"' ^'rF"" "^ '""^ '" ""^ -■««'"' 
 account* one having the helw^^^,,?'""" *° "'<' Merchan,Ii,,e 
 already indicated. '^ Manufactunng," and conduct it as 
 
 ^1' 
 
 trPf 
 
 11 
 
 [i 
 
 ' pl*!i 
 
140 
 
 UOOK-KKUPING. 
 
 PLANT ACCOUNT. 
 
 I t 
 
 The term "Plant" in mercantile phraseology represents all implements, 
 machinery, *l'c., which are used in producing the article or articles manu- 
 factured. The Plant account is held Dr. for the first cost of the plant, 
 and Loss and Gain is held Dr. for subsequent amounts written oflf owing 
 tc» depreciation in value. 
 
 MARKING GOODS. 
 When goods are received, the invoice should be checked and " marked." 
 A slip shewing the following should be attached to each package, &c. 
 
 (a) The initials of the name of the person or firm from whom purchased. 
 
 (b) The date of the invoice. 
 
 (c) The quantity, 
 
 (d) The cost in private characters. 
 
 (e) The selling price in plain flffures or private characters. 
 
 Any combination of ten or eleven different letters as, "Republican," 
 " Importance," «kc., will be found suitable for private marking. Suppose 
 the word ^^ iVouriahable" is selected, the first ten letters taken in order 
 representing the numerals 1, 2, 3, 4, 5, 6, 7, 8, 9, 0, respectively. The last 
 letter may be used as a repeater. For example, an article costing $1.44, 
 would be marked 7i r e , and one costing $6.90, sbl. The pupil will 
 understand this better by writing the word (or phrase) and the corres- 
 ponding figures thus : 
 
 nourishable 
 
 1234 5 67890 repeater. 
 
 Marks which are purely arbitrary are often employed. Special characters 
 should be chosen to denote fractions, such as |, ^, ^, &c. 
 
 By referring to the slip marked as described above, it will be seen at 
 once for what time any article has been in stock — a very important matter. 
 
 BOOKS AS EVIDENCE IN' COURT. 
 
 When a debtor disputes the claim made by a creditor, for which there is 
 no other evidence than the entries in the books of the latter, the following 
 nmst be proved before payment can be enforced : 
 
 (a) By whom the entries were made. 
 
 (b) That the books produced are kept by him. 
 
 (c) That he is a tnistiodrthy accountant. 
 
 (d) That some of the articles charged were delivered. 
 
 [Note.— Books of original entry, and no others, are admitted as evidence in courts of law]. 
 
DOOK-KEEPLVd. 
 
 141 
 
 BRANCH HOUSES. ' 
 
 w...e ,,ur:.ha»,.,l, „P to wll „ " «;Z^l^r'"''!'' from wl.o,„ ,he g,..U 
 invoices „f Hu.h g,KKl3 »l,,,uirh„ ^K ' 'i'u ™'"«.P''"' »■«■ tl"'.n. Tl,„ 
 not be cl„.«,,, t «the Me,.,„/,„t":;':,lM,S the otv:" """ "'^^ "'" 
 
 PARTIAL PAYMENTS * 
 
 -^ply''trZn''L\^^^^^^^ date o, each payment i 
 
 indorsenuints. *"'^" acknowleclicnients appearing: on notes, &c.. are tenLd 
 
 Receipts are sometimes given when such payments are made 
 
 as it is recognised .^ rhe'lrt^ S kw/'" """''"' *™'" ''^ '""'o-' ' 
 
 (h) If the payment is grmter than the interest accrued ,hdunf ti 
 plus from the principal, and regard the mmtmL ^^f ' 5 • '^'''? 
 
 proceeding as be/ore. remainder as the new jmncipn/.^ 
 
 (c) ^ Tf the payment is less than the interest dve tho inu.oo* n i 
 
 <t 
 
 
 m-. 
 
 ill 
 
 \m 
 
-^■B^^RPfK-H 
 
 ! 
 
 i 
 
 142 
 
 BOOK-KEBPING. 
 
 as the pay^neMta taken together are equal to, or greater than, the accrued 
 interest. The surplus will then be deducted /ram the principal and the 
 r*^mainder regarded as the neiv jtrincipal. 
 
 By oxamining carefully the foregoing, the student can deduce: 
 
 (1) That payment must first he applied to the disi-hurge of the interett, 
 
 (2) That a new principal cannot exard a, jiri'vlons one. 
 
 (3) That a debtor who pays an amount legtt than the interent due, gets nothing for the use of hJs 
 money until the siun of the payments is snfHclently large to cover the interest and give a surplus lo 
 be applied to the payment of the debt itself. 
 
 EXAMPLE. 
 
 $riOO. 
 
 Port Eloin, July 4, 18S7, 
 
 Fifteen months after date, I promise to pay W. P. Spalding, or oi-der, 
 Five Hundred Dollars, for value received, with interest at 6%. 
 
 WM. SWEETMAN. 
 
 On this note are the following indorsements : 
 
 Received Apr. 21, 1888, $100. 
 Received July 3, 1888, $70. 
 
 How much will pay the note on the 30th Oct., 1888. 
 
 Received Sept. 15, 1887, $50 
 Received Feb. 10, 1888, $10. 
 
 SOLUTION. 
 
 1st Priucipal |r)(K) 
 
 Int. on ^<P500 fi\ in July 4, 1887, to Sept. 15, J887 6 
 
 Amount 5(H) 
 
 1st Payment 50 
 
 'ImX Principal 45G 
 
 Int. on $456 from Sept. 15, 1887, to Feb. 10, 1888, |11.0(), 
 which exceeds the payment. 
 
 Int. on §(456 from Sept. 15, 1887, to Apr. 21, 1888 10 42 
 
 Amount 47'2 42 
 
 2nd and 3rd Payments 110 
 
 3rd Principal 3G2 42 
 
 Int. on $.362.42 from Apr. 21, 1888, to July 3, 1888 4 35 
 
 Amount .366 77 
 
 4tlx Payment 70 
 
 4th Principal 296 77 
 
 Int. on $296.77 from July 3, 1888, to Oct. 30, 1888 5 81 
 
 Amount 302 58 
 
 Therefore, $,302.58 is the sum that will discharge the debt on the 30th Oct., 1888. 
 
UOOK-KKKPINii. 
 
 143 
 
 AVERAGING ACCOUNTS. 
 
 Tlie timo found by ,n(Muging is tonuocl the Equated Time. 
 
 TluM-o aro smenil ,Moth,«l,s of iiruling the e.iuated tin.o iti use • l.nfc f h.v 
 a re ;. I l,u,so<l u,,ou the nssun.ption that the intei^st of the IZ^^^)^ 
 
 becomes dn,i ih ««<,uivalent t<, the interest of an c.,u,k s,nn wKnlf f- 
 tl..^ .san.e length of tin.e after it /.-comes due. ' ^^ *'"' 
 
 a l.a.,.., tl.u rusulti,,,. error Lein^ bo mnall a"to?ffVrHe.To\,s^'bj!,X,'^ convenient to odopt'lt a. 
 
 SIMPLE AVERAOB. 
 
 ^_JheJ„ll„wing ,h,Kl of .ver,.g,-„g h„ ,u,o„„„t is ,,,,„ .,„„ .,„„„„„„|^ 
 
 (a) fMert ,« >heM<l J.U,. tl^ e.arUeM „,. ,„/„•„,. „„ „„„«„,^,^^ ^„„ 
 
 %s 
 
 mnoii/tit 
 
 EXAMPLE. 
 
 HOBERT CURRY, Esq, 
 
 To JAMES SHIELDS, Dr, 
 
 Jan. 
 << 
 
 Ff.f). 
 Mar. 
 
 17 
 31 
 
 JS 
 
 To Mdne 
 <( <( 
 
 (( (< 
 
 150 
 ^00 
 
 xind the ei^uated time. 
 
 ^m\ 
 
144 
 
 llOOK-KKKPINQ. 
 
 |j 
 
 i ' 
 
 ' 
 
 OPERATION. 
 Take Jaii. 17 as the first date. 
 
 From Jan. 17 to Jan. 31, there are 14 dayb. 
 
 II 
 
 It 
 
 «• to Feb. 22, 
 
 <t II 
 
 36 
 
 • 1 
 
 II 
 
 II 
 
 " toM 
 
 100 X 
 
 50 X 
 
 150 X 
 
 260 X 
 
 ftr. 18, 
 
 = 
 14 = 
 .SO = 
 GO = 
 
 II II 
 
 700 
 
 5400 
 
 l.")GOO 
 
 60 
 
 II 
 
 500 )217()0(.38/r 
 
 Therefore the whole amount maybe paid 39 days from Jan. 17; that 
 is, on the 25th Feb. 
 
 COMPOUIfD AVERAGE. 
 
 Compound average is the process of finding the time wlien the balance 
 of an account consisting of debits and credits should be paid. Various 
 methods of finding the equated time for the payment of the balance of an 
 account are employed. The following one is simple and practical : — ■ 
 
 (a) Find the equated time/ot each side of the account separately. 
 
 (h) Multiply the amount due on that aide of the account which falls due 
 FIRST, hy the number of days between the dates of the equated time, and divide 
 the product by the balance of the account ; the quotient will give the mwdxr 
 of days betiveen the later date and the equated, time required. 
 
 (c) If the smaller side falls due first, count forward from the later 
 date; if the large side falls due first, count backward. 
 
 Dr. 
 
 EXAMPLE. 
 
 Rohe/rt Fullerton. 
 
 Cr. 
 
 1SS7 
 
 
 Jan. 
 
 3 
 
 Feb. 
 
 ss 
 
 To Mdse 
 
 
 
 
 1SS7 
 
 
 
 100 
 
 
 FeJ). 
 
 17 
 
 
 50 
 
 f 
 
 Mar. 
 
 15 
 
 OPERATION. 
 
 100 X 00 
 50 X 56 
 
 2800 
 
 150 ) 2800 ( 19 
 
 19 da. from Jan. 3 gives Jan. 22 as the 
 equated time for the Dr. side. 
 
 60 X 00 
 
 70 X 26 --= 1820 
 
 LSD ) 1820(14 
 
 14 ds. from Feb. 17 gives Mar. 3 as 
 the equated time for the Cr. side. 
 
 * In such a case, if the fraction is less than J it is not counted ; if greater, it is taken as unity. 
 
KOoK-KKKPINfJ. 
 
 m X 40 = (iO(M) 
 Balaiic<3 zLz '>o 
 
 1 15 
 
 £-C" :txt-- i- 1-£ — 'Ki'sir^^^^ 
 
 Cr. 
 
 60 
 
 70 
 
 CHAPTER X. 
 
 CORRESPONDENCE 
 
 '''■':'';':;'*--'■''''/ giving ,l.e.:;;;;i,':^,t!;;i,';'' ""^ ''^"■' "' -'■"•- 
 
 The Date in,lio„tes th„ ri,.; , f tVn'o^f ? 'x"' '^"P-'^"!"-"- 
 
 i.o c,.se ot a „„t.e of i,.vitatio,i it i, oul, ' ' ,'" > "V'" P""''- 1" 
 bottom aii,l to llie left. cu^touuiy to plaee the date at the 
 
 The Address is the name of the oerson /,„. « \ . ■ 
 '"un.cation is sent to«eth..i- with, hat ^r ("■•firm) to whom the co„,- 
 tn letters of f,.i„„,.,ht, the a,l , t lei:!:,'"" 7 '''•''« "^ ''"»'"«-• 
 to the left, h„t in hnsiness letter's i , X l'""'' "* J''" '""''"" ""■I 
 'late a,„l to the left, beginning at the m,"!^^ ''''""'' " "«''' ''"I""- l^'-e 
 
 The Salutation consists of the intmJ,?,.* . , . 
 
 p.-ece.le the iKxly of the lette, n, i'l ^ oK 1 f '71"'^ ^''"'l' 
 beguini.-g at the margin. ' '"" P'^""'' '" the i,,ft usually 
 
 the line helovv the salutation, an/ s , e " "I'V, " S"""""^ ''%'"'» "" 
 shouUl he a pirago-aph for ev orv sul.i + t v '"", *''" """•«''"• There 
 
 fi 
 
itr. 
 
 B00K-KEKP1N(J. 
 
 Tlio Subscription consists of the coniplimeiitary words 1)1jic('(1 at the 
 bottom of a letter, and the signatui'e of tlie writer, all of which siiould l>e 
 towards the right. 
 
 The Superscription is the full address of the person to whom the com- 
 munication is sent, •written on the enveloj)e. See below. ^ 
 
 Letters are so vaiied in their character that it is impossible to lay down 
 i-ules applicable in all cases. The following, however, may piove helpful : 
 
 (a) Write iicatli/ niid plainhj. 
 
 ih) Be caifful in rejraifl to Hfrlllii^, punrtnation, and the arfmvjcunit of the difforent parts. 
 (<•) I'sc ;;•» few ironh as juissihle (csijecially in a business letter) to nuike clear the meaning. 
 (d) Avoid siV»/;7 j)hi-aKfs nt'A iai(frniiimattcal exiirt'KxUnts. 
 
 ie\ Re id the Utter and, if nceessarv, tale a copy of it before enclosing it in the envelope. 
 (/) See that titc envi'lope Uprnwrbj diivd-'d and Mnniped. (See diagram below.) 
 (0 Avoid poKfscn'i>t.-< ns far as possible. 
 (/() Rrfil'i i>ri}mpthj to n connnnnii-ation. 
 (t) Never seal a Micr of ititrodttctioii. 
 
 ()) I etter^ foiitainin;,' important infonnation -;ivcn confidentialhi should be marked " I'nmte." w\ 
 both the upper left hand corner of the envelope, and of the first page of the letter. 
 
 (k') III replying to an advertisement, mention the name and the number of the paper in which it 
 a}ipeared. 
 
 In the exercises of this chapter the pupil will, as far as he can, avoid 
 using the same language as that found in the forms given, so that each 
 ♦•ommunicatitMi ho writes may afford some practice in compositi(^n. 
 
 Diaijrnm Shewing Superscription. 
 
 STAMl' 
 
 
U(H)K-Ki.;i;i'i\(i. 
 
 Letter of Introduction. 
 
 147 
 
 Messrs. Tvisox it Pratt, Clinton, May 11, 1887. 
 
 Toionto, Out. 
 ItKNTLKMKX, — 
 
 Penuit me to intnxluc(^ to v<m mv friend Mi- \ ^ t .,\ l 
 
 pnsing .„a successful n.ercl J.t \,ri^.t"t^i.' wl^y^JZ';;.^;- c-i^^t 
 
 ysX. n^^sT r ^T^:- ' •^'••^" '''' ''-^PPy *^ acknowledge I uft'^-t 
 myself any ussista.i,-, that you may he able to giv(, him. 
 
 Yours resj)ectfully, 
 
 J<»M.\ CAME HON. 
 
 Nmer introduce oiio uinvoftliy of confliJuiice 
 Do not «,.oc.pt a l.tfT of i..tro,U,<aion fro... a.. ,.nrelial,le i....'ho„ 
 tafcirto'i;;;™.'"^'^ ^'*'-"'-''' ""'^- «»- a-.'."i..ta..ce th„s fo......... i« likely to .,0 a^r.-eaLle. ora.lva,.- 
 
 Letter of /nfroducfwu /ncjirniu/ Liability. 
 
 MiissH.s. TvisoN it Pratt, Clinton, May 1 1, l,s,s7. 
 
 Toronto, Ont. 
 Oentli^men, - 
 
 town""'V";; '" '""■"''"? '^"' '""^'"'■' ^^^'■- ^^- '''• ''^'•^•VJ'"'' '^ >"«'--l>nnt of this 
 own You may consider me resj>onsible for ^.oods that he mnv huy frou. 
 .N<Hi, to the amount of five hundred dollars. ' ^ 
 
 Yours )es{)ectfully, 
 
 ■J(>Hx\ CAMEHOxX. 
 
 EXERCISE I. 
 
 Requesting to have cm Account Opened and Ordering Goods. 
 
 Messrs. Sallows & Co., "Woodstock, June 10, 18S7. 
 
 Montreal, P. Q. 
 Gentlemen, — 
 
 i4:l 
 
148 
 
 BOOK-KEEPINtJ. 
 
 For infi>nnati<m in regard to my standing financially, I beg leave to 
 refer you to D. C. McMurchy of your city. 
 
 If you decide favorably, please forward immediately by expi-ess — 
 
 120 prs. Men's Buff Bals., ^ 
 
 100 " " Gaiters. 
 
 120 " Women's French Kid Bals. 
 
 Yours truly, 
 
 JAMES J)OTY. 
 
 i 
 
 Reply to the Foregoing. 
 
 ^Montreal, June 14, 1^X1. 
 
 Mr. James Doty, 
 
 Woodstock, Out. 
 
 Dear Sir,— 
 
 Yours of the 10th instant at liand, for which fav«)r please accept our 
 
 thanks. 
 
 Havin" referred to INIr. McMurchy as to your standinj,', ttc, we take 
 pleasure m placing your name on our list of customers. 
 
 Enclosed you will find Invoice of (kxxls shipped this morning, as per 
 
 your order. 
 
 •' very respecttully, 
 
 SALLOWS k, CO. 
 
 EXERCISE II. 
 Write a letter from Sallows & Co. to Doty, refusing to .send him goods 
 on credit, and assigning reasons. 
 
 Onhr for Goods. >■ 
 
 Port Elgin, May 12, 1887. 
 
 Messrs. Gilrov it Johnson, 
 
 Hamilton, Ont. 
 
 Gentlemen, — 
 
 Please forward by express the following goods : 
 
 2 Half Chests Oolong Tea, 
 
 3 Li-vgs Rio Coflfee. 
 Draw on us at 30 days' sight, and oblige, 
 
 Yours truly, 
 
 KENNEDY k McKAY. 
 
 In filUnK out an order care must be taken to write plainly and frfve all the distinguishing marks, 
 Jtc. Inattention to this is often followed by serious inconvenience. 
 
BOOK-KKKPINa. 
 
 i 
 
 Reply to the foregoing. 
 
 Hamilton, May 14, 1887. 
 
 149 
 
 Messrs. Kennedy cfe McKay, 
 
 (tENTLKMEN,— * ' "'^* 
 
 Eiulosed please find Invoice anrl «;ii * t v 
 V'.." this day, as per your o der "t the 12 h "'^?^ f • ^^"^'^ •^^"PPe^l t.. 
 ^nll prove satisfactory: '^ ^^^^' "^•'^^•' ^^"^"h goods we hope 
 
 At your request we send (haff nf 'in i » • , 
 
 •sa>ne and renut at your l^^ Ivent^^tor 'r'^'"^ '^^^P^' *'''' 
 orders, we remain, i-onvenience. bolicitnig your further 
 
 Yours truly, 
 
 As soon as convenient after the reoeii.f nf . .. <'ILROY & JOHNSON. 
 
 l"'Jf« 48. '• '"« '>o»«e aupplymtr the goods should be notifled of fh«l '^* P'^»*«'' entrie'i 
 
 me error at once. .See 
 
 • EXERCISE III 
 
 ,..r,r " '"""^ '" ^""- -P'o^- -king fo.. an i„o,.„.e of .a,.,.,, „,.,„„ 
 
 o 
 
 ^««er Acknoioledginy Receipt of Goods. 
 
 Messrs. Frasek cfe Munro, 
 
 Montreal, Que. 
 Gentlemen,— ' ^ 
 
 Yours of the Uth inst., advisin- mo nf T • ' 
 
 I'HMd yestenlay. ' ^^'""'''^ "'^ "^ shipment of goods, came to 
 
 The goods have arrived frwl-^r ,-. n 
 
 satisfied with them. '*^^ "^ "^^'^"^"*^ condition, and I am M^ell 
 
 Yours respectfully, 
 
 <^. M. hATm. 
 
 Letter Complaining of an Error in a Bill. 
 
 Ottawa, Sept. 16,1887. 
 
 Owen Sound, Jan. 22, 1887. 
 
 A. 8. Lawrence, 
 
 Hamilton, Ont. 
 t>EAR Sir,— 
 
 t.c,„ and return the bill, which I e„oi<« he^with " " "'^'^'^ ™'™"- 
 
 Veiy truly yours, 
 
 EDWAKD GKAHAM. 
 
 f'jlik' 
 
150 
 
 HOOK-KKKIMNC. 
 EXERCISE IV. 
 
 Write LjiwiTiices roply und also Oraham's acknowlcHlgmriit «»f tl..' 
 i»>n-ecti()u made. 
 
 Letter Enclosimj Payment for Hoods. ^ 
 
 Brockvillk, Aug. 8, lf<H7. 
 Mksshh. Phatt tfe Co. 
 
 Oshawa, Out, 
 
 (iKNTLKMKN, - 
 
 Enclosed find a draft for $130, the amount of your bill <»f the nth .nst. 
 
 lMea>e reccMpt the hill which I send herewith, and return it to 
 
 Youra tVc, 
 
 A. IU)B1NSUN. 
 
 '• never put off till to-iiioirow wJmt bIiouUI l)e done to-<liiy. 
 
 Letter Knclosing a Remittance. , 
 
 WiNNiPKO, May 1*2, 1SS7. 
 John Fishkh, Esq., 
 
 Emerson, Man. 
 
 Herewith 1 send a draft on Harrison .t AVilson, ;«>-!"•* •;^'" ^'^ 
 135.40, to close my account. Please send a receipt in full ot all dem.uuls 
 
 to date, and oblige, , ,. ^ 4. 
 
 Your obedient servant, 
 
 ALKX. KOSS. 
 
 Letter Reqnestlmj a Jiemittance. 
 
 St. Catharinkh, June 1, l^^7. 
 
 (iKOROE C. Leeds, Esq., * 
 
 Grinisbv Out. 
 
 Dear Sir, — 
 
 We desire to call your attention to the enclosed stotement ot account 
 shewing a balaiwe in our favor of $140.50. 
 
 By remitting the amount at your earliest possible convenion. .% you 
 
 will oblige, 
 
 . Yours respectfully, 
 
 PHKLPS & nllK. 
 
 EXERCISE V. 
 TVv--- T„„j„> i„ ;* he fi"'^^ +hn<^ thfi statement does not agree with 
 
 vv iiLC j-.ceua t^^i'ij It lit' -'•-- — 
 
 his v)wn books. 
 
BOOK-KKKI'lN(;. 
 
 l.M 
 
 Reply. 
 
 CJUIM81IY, Juno 3, 1887. 
 
 Mksbhh. Pukjj's tfe Oiut, 
 
 St.Ciithurinus, Out. 
 Hkntlkmrn, — 
 
 Y.,u.s of <hn Isfc inst. ro<iuo,stit.^r a 8rt,th.,nnnt c.f account, <o hnnd. I 
 am sorry that T <vttinot riMnit, Ix-fore tl.o lOth i.isf,. ]f you will not, pn^ss 
 the nmtUu- until that «latr, you will gn-atly ol,li«,.. ^ * 
 
 Youf-H tiiily, 
 
 <JKO. ('. I.KKDS. 
 
 BXBROISB VI. 
 
 aclmnt''*" " ^*''^'''' ^" ^^'"'' '^"^'"''' "'^""'*^""» ''"M^^Hting ,i Htaton.«nt ..f 
 2. Writo Taylor's ,-eply enclosing Ktatiuncnt. 
 
 4. Wi-ito Taylor's acknowledgment of the remittance. 
 
 Requesting Payment. 
 
 •TOSKPH ElMKIWON, Ksti., OWKN SouNi), May 20, J 887. 
 
 Southampton, Ont. 
 DHAH Siu, — 
 
 A.S we have several large payments to make on the first day (»f June, we 
 are reluctantly compelled to ask you to settle your accour.t (as per enclose. 1 
 statement) in the meantiine. By attending to the matter you will greatly 
 
 Yours respectfully, 
 
 A DAMSON & CO. 
 
 To neglect replying at once to a letter like the foregoing Ih aIn,o«t sure to Jea.1 to unpleanantne^.. 
 
 Urgently Rcquestitig Pa>iment. 
 
 Joseph Emerson, Esq., Owen Sound, June 2, 1887. 
 
 Southampton, Ont. 
 Dear Sir,— ^ 
 
 Permit us to call your attention to our letter of the 20th ult.. askin- 
 you to settle your account, which is long past due. 
 
 By remitting immediately you will save costs, and obliire 
 
 Your-s, occ, 
 
 ADAMSON & CO. 
 
 el' 
 
 •r 
 
 ii, 
 
162 
 
 BOOK-KKEPING. 
 
 Noticn of Draft. 
 
 Clinton, May 24, 1887. 
 Mkssus. Taylok k Co., 
 
 St. Cathurineu, Out. 
 
 CJentlemkn,— 
 
 , We have tliia day flmwn on you in favor of A. S. Embury at .30 days' 
 hight, for $120. Pleane honor and ol)lige, 
 
 Yours very truly, 
 
 MANNING & SCOTT. 
 
 Notice of a JJialionored Xote. 
 
 Galt, July 11, 1887. 
 H. C. Cameron, Esq., 
 
 Paris, Ont. 
 Dear Sir, — 
 
 Having piesented for payment, James Callan's note for $100, indorsed 
 by you, he stated he could not pay it. I shall, therefore, reluctantly l>e 
 obliged to look to you for payi.ient. By attending to the matter imniedi- 
 at»>ly you will oblige. 
 
 Yours respectfully, 
 
 J. P. KEOWEN. 
 
 Application fw a Situation as Book-keeper. 
 
 Clinton, June 17, 1887. 
 J. C. Richardson, Esq., 
 
 Walkerton, Ont. 
 Dear Sir,— 
 
 In reply to your advertisement in the Globe of to-day, for a book- 
 keeper, I beg leave to offer you my services. 
 
 .Just after taking a thorough course ot the Clinton High School four 
 years ago, in commercial work, I became assif "^ant book-keeper for Miller 
 «fe Gi^eoory of this town, continuing in theii employ ever since. Please 
 find enclosed thei. testimonial as to my character, ability, &c. 
 
 If I am successful in this application, I shall enter upon my duties 
 determined to discharge them faithfully. 
 
 Your obedient servant, 
 
 L. M. HAY. 
 
 
BOOK-KKKPINO. 
 
 Application for a Situation a^ Teacher 
 
 l."^3 
 
 r. Tj u -r, "Paisley, May 12, 1887 
 
 .».\H. H. Scon-, Esq., > j . * 
 
 Sec. P. S. B., 
 
 Sumrnerside, Ont. 
 I>i:au Sir, — 
 
 In reply to your advertisement in tlie DaUy Mail of to-day. T lierebv 
 respectfully offer myself as a candidate for the vacancy in your school. 
 
 I hold a First-Class Professional Teacher's Certificate (Grade C and I 
 h.jve five yejrs' experience, as is shewn by the enclosed testimon'ials, to 
 M hich I beg leave to refer you. 
 
 1 l?'"u''^ J ''® honored with the appointment, I shall take charge with 
 both the detemnnation and confidence that my services will prove satis- 
 factory to all concerned. ^ 
 
 I have the honor to be. 
 
 Your obedient servant, 
 
 PETER CRAM WELL. 
 
 EXERCISE VII. 
 
 Write a letter to the headmaster of the school you have been attend- 
 ing, requesting hnn to gne you a recommendation. 
 
 Recommending a Teacher, 
 rr ^ MiLLBANK, June 15, 1887. 
 
 To WHOM IT MAY CONCERN, 
 
 This certifies that Mr. C. H. Cann taught as principal of the pTiblic 
 school here for four years, and that during that time he proved himself an 
 eai-nest, painstaking, and successful teacher. 
 
 Mr. Cann is a gentlemen whose character is above reproach and he is 
 thoroughly devoted to his profession. I have therefore much pleasure in 
 lecommending him as a first-class teacher, who will always have the moral 
 as well as the mental interests of his pupils at heart. 
 
 J. S. SIMPSON, 
 
 Chairman P. S. B. 
 
 Millbank, Ont. 
 
 . i. 
 
154 liUOK-KKKPIN(». 
 
 Calling a litMirietig Mwtiny. 
 
 KiNrARDiNK, .Tun« 2M, 1MS7. 
 Jamkh Miller, Esq., 
 
 DearBir, - 
 
 There will he a special meeting of the Hij<h School Hoard liehl in tlio 
 Council Chamber, nt 8 o'clock to-night. You are respectfully requeHttMl 
 to atteyl. 
 
 Yours truly, 
 
 A. M. SHTET.BS, 
 
 Sec. H. S. H. 
 
 Note of Invitation. 
 
 Misa Maggie McGregor requests the pleasure of Mr. AV'illiaui YoungH 
 company next Tuesday evening at eight o'clock. 
 
 28 Welland Ave., June 9. 
 
 Ansirer (Accepting ). 
 
 Mr. William Young presents his compliments to Miss Maggie Mc- 
 Gregor, and accepts with pleasure her kind invitation for next Tuesday 
 evening. 
 
 204 St. Paul St., June 10. 
 
 Ansver (Declining ). 
 
 Mr. William Young presents his compliments to Miss Maggie Mc 
 Gregor, and deeply regrets that, owing to a previous engagement, ht 
 cannot accept her kind invitation for next Tuesday evening. 
 
 204 St. Paul St., June 10. 
 
 EXERCISE VIII. 
 
 Write a note of invitation to a birthday party. 
 
 Give a reply accepting the invitation, and one declining it. 
 
 EXERCISE IX. 
 
 Arnoldus Thomas is a dry goods merchant in the town of Walkerton. 
 Write for him a circular to his customers announcing the arrival of his 
 spring goods. 
 
HOOK-KKKPING. 
 
 109 
 
 BXBRCISB X. 
 
 Answer one of the following advertisements : 
 
 " Wantbd.— A young girl as H/ileswoman and aHHistnnt book-keeper in 
 a millinery establishment. Address, giving testimonials and full par- 
 Esk.hde, Ont^' ''^^' e<iucation, experience, Ac, Mis. H. A. Maclian, 
 
 «' WAVTED.--ln a law office, a boy about 15 years of age, who is a fai,- 
 j)enman Applications, st^iting particulars, to be addi«essed to Robins<Hi 
 <x >nm, Walkerton. 
 
 EXERCISE XI. 
 
 u.Zn^lf%^^^^t' *\';.^''^«"^ 'J" Winnipeg, telling him that you have sonm 
 notion of locating there, and stating the amount of capital you wish U> 
 invest, the line of business you propose t(. pursue, Ac. Ask him for .such 
 intormation as may help you to decide upon what to do. 
 
 EXERCISE XII. 
 Write an advertisement under the lieading, ''Store to IJent ' 
 
 EXERCISE XIII. 
 
 KA. Young, of Manchester, telegraphs to Muir .t Co., of Toronto re- 
 questing them to send at once, by express, HO packages Canned Salmon, 
 and to draw on him at ten days. Write the telegram, which must no 
 consist ot more than ten words. 
 
 EXERCISE XIV. 
 
 You have sold your farm for $5,000, receiving in payment .f 2,000 cash 
 and a mortgage bearing interest at 6 % for $3,000. Write a tekgram not 
 TevtZluZs ' MacLean, Gresham, informing hhn of aU 
 
 EXERCISE XV. 
 Write an advertisement under the heading, " Farm for Sale." 
 
 
 v 
 
 
156 
 
 BOOK-KEEPING. 
 
 CHAPTEB XI. 
 
 Acet,, Account. 
 Acc'nt., Accountant. 
 Adv., Adventure. 
 Agt., Agent. 
 Amt., Amount. 
 Ans,, Answer, 
 Ap., April. 
 Aug., August. 
 Av., Average. 
 
 Bal., Balance. 
 B.B., BiU Book. 
 Bbl., Barrel. 
 Bk., Bank. 
 B.P., Bills Payable. 
 B.R., Bills Receivable. 
 Bl'k, Black. 
 Bot., Bought. 
 Brot., Brought. 
 
 ABBREVIATIONS. 
 
 Esq., Esquire. 
 Exp., Expenses. 
 
 Feb., February. 
 Fir., Firkin. 
 F.o.b., Free on Board. 
 Fol., Folio. 
 Fw'd, Forward. 
 For., Foreign. 
 Fri., Friday. 
 Ft., Freight. 
 
 Gal., Gallon. 
 
 Gen. L., General Ledger. 
 
 Guin., Guinea. 
 
 Hdkf., Handkerchief. 
 Hhd., Hogshead. 
 Hund., Hundred. 
 
 Cap., Capital. 
 
 C.B., Cash Book. 
 
 CD., Certificate of Deposit. 
 
 Clk., Clerk. 
 
 Chgd., Charged. 
 
 Co., Company. 
 
 C.C, Account Current. 
 
 CO. D., Collect on DeUvery. 
 
 Com., Commission. 
 
 Consgt., Consignment. 
 
 Cts., Cents. 
 
 €wt., Hundredweight. 
 
 I)., Fence. 
 J) or d. Day. 
 D.B., Day Book. 
 Dec, December. 
 Dft, Draft. 
 Dis., Discount. 
 Div., Dividend. 
 Do., The Same. 
 Dols. or $, Dollars. 
 Doz., Dozen. 
 
 E.'& O. E., Errors and 
 Omissions Excepted. 
 
 Ext'd, Extend. 
 Exch., Exchange. 
 
 I.B., Invoice Book, 
 i.e.. That is. 
 Inst., instant. 
 Int. Interest, 
 luv., Invoice. 
 Invty., Inventory. 
 
 J., Journal. 
 Jan., January. 
 J.F., Journal Folio. 
 
 Lbs., Pounds. 
 L.B., Letter Book. 
 L.F., Ledger Folio. 
 L. & G. , Loss and Gain. ,. 
 
 M., Thousand. 
 Mar., March. 
 Mem., Memorandum. 
 Mft'g, Manufacturing. 
 Mo., Month. 
 
 N.B., Take Notice. 
 No., Number. 
 Nov., November. 
 
 Oct., October. 
 
 O.B.» Ordfii Book= 
 
 O. LB. , Outward Invoice B'k. 
 
 Oz., Ounce. 
 
 P., Page. 
 
 P.C.B., Petty Cash Book. 
 
 Pes., Pieces. 
 
 Pd., Paid. 
 
 Per, By. 
 
 P.B., Pass Book. 
 
 Pkg., Package. 
 
 P.O., Post Office. 
 
 Pol.. Policy. 
 
 Prem., Premium. 
 
 Prox., Next Month. 
 
 Pts., Pints. 
 
 Qr., Quarter. 
 Qt., Quart. 
 
 K.B., Receipt Book. 
 Rec'd, Received. 
 Rec'pt, Receipt. 
 Reg., Register. 
 Rep., Representation. 
 Ro., Right-hand Page. 
 R.R., Railroad. 
 
 Sat., Saturday. 
 S.B., Sales Book. 
 Sec, Secretary. 
 Shipt., Shipment. 
 Sq., Square. 
 St., Street. 
 Stg., Sterling. 
 Sunds., Sundries. 
 
 T.B., Trial Balance. 
 Thurs., Thursday. 
 
 TJlt., Last Month. 
 
 Viz., Namely. 
 
 W.B., Way Bill. 
 Wed., Wednesday. 
 Wt., Weight. 
 
 Yds., Yards. 
 Yr., Year. 
 
 (S). at. 
 
 % ', Per Cent. 
 
 j/, Check Mark. 
 
 \ 
 
BOOK-KEEPING. 
 
 MBEOANTILE TEEMS DEFINED. 
 
 157 
 
 I. 
 
 ^t 
 
 ACCOUNT PURCHASE-A formal written statement 'rendered bv «n , f * u 
 prmcipal, shewing the cost of goods purchased as weTLa^llv?^'"* *^ ^'f 
 charges connected therewith. '-nasea, as well as ail expenses and 
 
 ACCOUNT SALES-A written statement oi croods sold on rommi««,n« ., • 
 
 quantities, prices. &c., as well as all charges on the same ''°'""^''«'«°' ^^^'^^S 
 
 tn^v JTo^Jt^"^ ^"''" representing goods sent to be sold ou commission. 
 
 AD VALOREM— According to value. 
 
 ADVICE— Information regarding a business matter. 
 
 AGENT— One who has power to transact business for another. 
 
 ANNUITY— Value payable at the expiration of certain nerindH nf «mn a 
 
 ity may be payable yearly, half-yearly, . .arterly.Vc ' ^ *"°"' 
 
 ASSESSMENT-The valuation of the property of those who are to pay a tax for th. 
 purpose of hxmg the proportion which each shall pay. ^^ ' ^^ 
 
 ASSETS— All values belonging to a person, firm, or corporation • • 
 
 -^ ^'''"^^SFfo/ttSTof e^a^iSr ''^ "' » ^■"'"•P' *» -«- in who. i. 
 ASSIGNOR— One who transfers an interest to another. 
 ATTACHMENT-A seizure of goods by virtue of legal process. 
 AUDIT— To examine accounts and testify to their correctness 
 
 "^^^^mfJS? ^^ ACCOUNT-Finding the time at which the balance of an accoun* 
 may be paid, so that neither party concerned may suflFer loss. accoun„ 
 
 BALANCE-The difference between the sides of an account. To close an account 
 ^"^^Sr^^pe^^tt^^oiilt.^ ^'-- — ^-- -<^ ^^"-ts oToreZly 
 '"'"''Talfshi^sf ~^ '*'''""'' "^ "^^'"^^^^^ '"•'"• ^'^«--g f""y the condition 
 
 ^'^^\lI^LL^ltZZ;:'' '""^' '^ ^ '^•^'^' P^^^^^^ *« ^-- -^— d, 
 
 ^"^^^^ii^^^^t small book held by the depositor, into which deposits are entered 
 by the bank officials as they are made. At stated times it is lianded over t 
 
 are returneT"" ' ^'^'"""^- ^^^' ^''''^ ^*^"«' ''' ^"^ the vouchers 
 
 BANKRUPT— Unable to pay debts. 
 BARTER— To exchange one commodity for another. 
 BILL— A detailed statement of goods bought or sold. 
 ^t^t' ^C, "" " """" """ «t;iicmcni; or goons entered at a custom house. 
 
 ^^ SUofhe?'"''''^--'" "'^'" '""^' ^'^ ^'^^ ^''""^^y ^- tl'^ P-y--*^f -ouey 
 
 'M ' 
 
158 
 
 BOOK-KKKPING. 
 
 BILL OF LADING — A written statement s.gned by the master of a vessel acknow- 
 letlgiug the receipt of goods on board, and agreeing, under certain conditions, 
 to deliver them safe to the person to wliom they are directed. 
 
 BILL OF SALE— A contract under seal, by which a person conveys his title to 
 proj)erty. 
 
 BLANK OREDIT— Permission to draw on a person or firm to a specified amount. 
 
 BOND — A written obligation under seal to pay a sum or perform a contract. 
 
 BONDED GOODS— Goods left in charge of the officers of customs, for the duties on 
 which bonds are given at the custom house. 
 
 BONDED WAREHOUSE— A warehouse in which goods are kept for security of the 
 duties chargeable on tliein. 
 
 BOTTOMRY BOND— A lien on a vessel as security for money lent to the owner, 
 the understanding being that if the vessel is lost on the voyage, the money 
 will not be refunded. 
 
 BROKKR — One who buys and sells ])r()perty for others. 
 
 BROKERA( iE — Tlie percentage paid to a Ijroker for his services. 
 
 CAPITAL — The eflfects invested in any business. 
 
 ( ARGO — The goods or wares conveyed iu a sliip. 
 
 GASH DISCOUNT — An allowance made for payment within a specified time, or for 
 ^ pajnient of ready money. 
 
 CERTIFIED CHECK— An order on a bank, which is marked "good" by the 
 cashier, the bank being thus made responsible for its payment. 
 
 CERTIFICATE OF DEPOSIT-A receipt given by a banker to a depositor as his 
 voucher for value deposited. 
 
 CHARTER PARTY— An agreement between the owner of a vessel and the person 
 to whom she is chartered. 
 
 CHATTELS— Movable property. 
 
 CHATTEL NOTE— One paya1)le otherwise than in money. 
 
 CHECK — An order on a bank. (See page 52. ) 
 
 CIRCULAR LETTER— A printed sheet issued by a house for a special purpose, 
 such as notifying customers of the arrival of goods, etc. 
 
 CIRCULATING MEDIUM — Whatever passes as money ; such as, bank notes, bank 
 drafts payable on demand, etc. 
 
 CLEARANCE —A certificate from a custom house that a vessel has permission to saiL 
 
 COCKET — A custom house certificate that goods liave been duly entered. 
 
 COMMERCIAL PAPER— Promissory notes, drafts, bills of exchange, checks, &c. 
 
 All paper which can be transferred from one to another as value. 
 COMMISSION — An allowance to an agent for services rendered. 
 COMPOSITION — The act of discharging a debt by paying a part of it. 
 COMPROMISE — To settle a dispute by nuitual concession. 
 
 CONSIGNEE- One to whom goods are sent to be sold for another. One to whom a 
 ships cargo is directed. 
 
 -CONSIGNMENT — Goods received to be sold on conunissiou. 
 
 CONSIGNOR — One who consigns goods to another. 
 
 CONTRABAND TRADE— The exporting or importing of goods illegally. Trade 
 
 CORPORATION — A society legally authorized to transact business as an individuaL 
 
 , 
 
BOOK-KKKPING. 
 
 159 
 
 Sometimes termed "eounter- 
 
 '< COUNTERMAND-A revocation of a former order 
 order. " 
 
 COUPON-One of the certificates of interest attached to a bond. Every time that 
 interest falls due, one will be taken off and presented for payment! 
 < ^'-REDIT-To trust. To place to the credit side of an account. The side of an account 
 winch shews the ambunt due the person or thing represented. 
 
 ^^^'^anotht^r^^"'^" acknowledgment of an error in regard to goods shipped t. 
 
 ■ rfiR P wn^^rr? ^^^"^ ^*' ^^^^"^ ''^^"^ *^ *"«*^"'" ^'*^'«"<^ receiving payment for it. 
 v.UKtti!.^o Y— Ihat which passes in a country as money 
 
 OURREXT PRICE-The ordinary price at the time referred to 
 
 '^^oLSecr^""^^^ ^^*'' ""'''' ^""'^' ^'^ '"*'''^ *"^^ *^« d"««« "P«" them 
 
 <- DAYS OF GRACE-The time allowed for the payment of a note or bill after it be- 
 comes noimnally due In Canada there are three days of grace given T a iSl 
 becomes due on the third day after the time expressed in it has^ex^Ved. 
 
 ^'^''^nl!i.yt~wer'""'-^"""^ ^^ " ''™P'"^ °^ municipality as security for 
 DEBIT-The^side of an acct. shewing indebtedness. To make an entry on the 
 ^DEBTOR— One who owes another. 
 m^mwn^"^ allowance made for the payment of a debt before it becomes due. 
 T.rtm?vS~"^f ','''' ^"^ ^"'"^'^ "" ^''^^* ^'^ P^y *" acceptance, note or check. 
 
 owl^^oTlin^sTocretc.' ' "'"'*" '' ' '^"^^P*' '''^^ "^^^^^^^ ^^^^ '^ ^^e 
 I)OClTMEXT-A writing containing information, evidence or directions 
 
 "^ a,;;;ther'!"**''' ''''^'' ^"' *^'' P^^™'"* °^ ^'^^"^y addressed by one person to 
 
 ^ DRAWEE— The person on whom the draft is drawn. 
 DRAWER— The one who draws on another. 
 
 """"^Tnld^eted^ool^'P^^ '""'^ "^ * ^^"^"^ ""' «"" "^^^ ^^--^l «^-d-g - -t 
 DUTY-Money paid to the Government of a country on goods imported or exported. 
 
 EFFECTS— All values belonging to a concern. 
 
 EXCISE— A tax levied on commodities produced within a country 
 
 FAC SIMILE— An exact copy. 
 
 FINANCES— The income or effects of a firm or individual. 
 
 ^^^ruIkTess.'*"" ''''^^\ ""^'"^ ^"^ association is kno.^ in the transacting of 
 
 
 *-f9 
 
160 
 
 BOOK-KEEPING. 
 
 PIRST-KATR Paper— Bills, notes, checks, etc., issne.l by a house of aood financial 
 staiuung. 
 
 PLAT- Dull. 
 
 FOLIO— The left and right hand pages of an account book, when both are numbered 
 by the same figure. 
 
 FORECLOSE— When applied to a mortgage means to deprive the mortgagor of the 
 right of redemption. 
 
 FOREIGN BILL OF EXCHANGE-A bill payable m a different country from the 
 one in which it is made. 
 
 FREE TRADE— Commerce carried on between two countries without being restricted 
 by customs or duties. ' 
 
 FREIGHT— The sum charged for the transportation of goods. 
 
 
 GARNISHEE— A person who holds value belonging to a second, and who has re- 
 ceived warning or garnishment not to pay or deliver it, owing to a claim 
 made by a third person (the primary creditor) against the second (the priraaiv 
 debtor). ^ ^ 
 
 GOOD WILL— The advantage or benefit which is acquired by an establishment 
 beyond the value of its capital, in consequence of the public patronage it 
 receives. 
 
 GUARANTEE— An undertaking to answer for the payment of a debt, or the per- 
 formance of some duty in case of the failure of another liable for such. 
 
 HONOR— As applied to drafts and notes means to accept, or pay when due. 
 
 HYPOTHECATE— To give as security for the payment of money without giviu<' 
 actual possession. ^ 
 
 IMPOST— A rate imposed. 
 
 INDIVIDUAL NOTE— A promissory note signed by only one person. 
 INSOLVENT — Having a greater amount of liabilities than of resources. 
 INSTALMENT— A part of a debt to be paid at a stated time. 
 INSURANCE — The sum paid for insuring property or life. 
 INTEREST — A sum paid for the use of money. 
 INVENTORY— A statement of goods on hand. 
 <:INV0ICE— A list of goods purchased. 
 
 
 LEASE — A contrai'^ by which the possession of property is given for a stated time. 
 
 LEGACY— Money or property allowed by a will or testament. 
 
 LTT-TTPR OF ATTORNEY— A writing by which one person authorizes another to 
 transact business for him. 
 
 LETTER OF CREDIT— A letter requesting the person addressed to credit another 
 whose name is mentioned in it, with a certain amount. 
 
 LETTER OF LICENSE— An instrument by which creditors allow a debtor, who has 
 failed, to conduct his business without interference. 
 
 LIABILITIES — Debts or claims against a person or firm. 
 
 IJEN — A legal claim. A charge upon property for the satisfaction of a debt. 
 
 LIQUIDATION— The settlement of a debt. 
 
UOOKKEEPINO. 
 
 161 
 
 MORTGAGE-The cofvev^^^T ,'"* T™''*" '>»"g'>' or sold, 
 
 iviuxti I, Al^OR-One who gives a mortgage. 
 ^^?^2^J^^^L^-Tr-'^«f«rable from one to another 
 
 NOTARY PUmclroffi """' ,-'"-, -"-in the time limited by ,aw. 
 
 such as protests of negotiable paper, &™"*^"*' "'^'^ "^ commercial transactions 
 NOTE— To record on the back of a bill a refusil nf ... * 
 
 to pay in money. (See Proniissory Kot^) ^^''^i'**"^^- A written promise 
 
 Sm)P^^T''^r'* "^"' '^^^"^ ^^'^^^ - P-«- to P-form a duty 
 OBDER-Awntten request or demand for the payme^it of rne^Tr the delivery of 
 OPEN POLICY OF mSURwrv a ^ r 
 
 pertyinauredareexZi'i°fL1,!;re"j:j;,r"'''* *"' ""■»""'' °f the pro- 
 
 one 
 
 pl™smp*'Tr'~^^^™°' °' "'"''" ''^ P""' »' *ff-nt time. 
 
 ^ PAYEE— The one to whom a bill is payable 
 PER CENT. (% )-By the hundred. 
 
 agrees to indetinify another aJiinsUoss * ""' "' *''™« '^^ which .,..« partv 
 POSTING-Transferring to the ledger 
 
 ""''"bttlf SSI-^" ^— * '«««"y »'>.oH.„« „„e ,e.„. to t..aot 
 PREMira-The an,o.„t ,aid by the i„,„ed to the i„»„e,.. Value above „„ , 
 
 ™'^tS„1?SY:„^;rotthrbZL'itr;;tS;sr "^ '- -"'* '» «•■'" «» 
 
 ^'refS a^.^I^h^.f tir- --- - -^ -— . a certai. ..,„ ,, 
 
 PROTEST—A declaration in writing made bv a nnf.r.r r,„T.i:„ „_!._.„ ... . 
 
 VI a pm or imte, that all parties to it wiirbeVphi^^L"" "^"i"^ ^^ ««'« h..I.:er 
 sustamed on account of its non-acceptl^Te L „on p^^^^^^^^ ^""^ ^"^ 1"^ ^' ^ 
 
 Ml 
 • 
 
 
162 
 
 BOOK-KEBPINO. 
 
 IW; 
 
 REAL ACCOUNT— One which shews (generally) a resourco or liiil.ility, hy the dif- 
 ference between its sides. Cash, Bills Rec, Bills Pay., are examples of Real 
 accounts. 
 
 REBATE— An amount thrown ofifthe regular price. 
 
 RECEIPT— An ackuowledKincnt in writing of having received a sum of money or 
 other valuable consitujration. 
 
 REMITTANCE— Value sent from one to another. 
 
 RENEWAL OF A BILL— The issuing of a new bill at the expiration of the term «>f 
 another, so as to give an extension of time for payment. 
 
 REPRESENTATIVE ACCOUNT— One to which a particular title is given, so that 
 the property belonging to it can bo distinguished from other property of the 
 same kind. Shipment, consignment, storage, insurance, &c., are examples. 
 'RESOURCES— All financial values, either in a dealer's possession or owing to him by 
 others. 
 
 SALVAGE— A compensation for saving or preserving a ship or her cargo from loss. 
 <L-8ET OF EXCHANGE— A number of bills of the same date and tenor. When ono 
 
 is paid the others nm void, so that, in reality, the whole constitute but on<'. 
 
 H\l. (See Bill of Exchange.) 
 SHIPMENT— Goods sent to an agent to be sold on commission. 
 SIGNATURE— The name of a ]^rrson signed by himself. 
 SINKING FUND— A sum of money set apart for the payment of a debt when it 
 
 becomes due . 
 SOLVENT— Able to pay all debts. 
 SPECULATIVE ACCOUNTS— Those kept with property for the ])urpo8e of shewing 
 
 a loss or gain, such as merchandise, bank stock, real estate, &c. 
 SPOT CASH— Money paid at the time the transaction takes place. 
 STAPLE GOODS— The principal commodities produced in a country. Articles which 
 
 are always in demand. 
 ^ STOCK— The whole amount of goods on hand. As a ledger title, " Stock" represents 
 "~^ the name of the proprietor. 
 
 STORAGE— The amount v?ceived for keeping goods in a warehouse. 
 
 SURETY — One who binds himself to perform a duty for another, if the latter should 
 
 fail to perform it. 
 
 TARE— An allowance made on the gross weight of an article for the weight of the 
 
 chest, bag, etc. , containing such article. 
 TARIFF— A list of duties or customs to be paid on goods imported or exported. 
 TELLER— An officer of a bank who counts over money received, and pays out money 
 
 on checks. 
 TRADE DISCOUNT— An allowance of so much per cent, on the invoice price made 
 
 to dealers by wholesale houses. 
 TRANSFER— The legal conveyance of value from one to another. 
 
 UNDERWRITER— One who insures property. 
 USURY — Exorbitant interest. 
 
 VOUCHER— A book, paper, or document which serves to cwuirm the correctness of 
 an account or statement. 
 
IIOOK-KKKI'INO. 
 
 163 
 
 EXAMINATION PAPERS. 
 
 THIRD AND SECOND GLASS, 1885 
 
 ^^^ ^<-.gai„«t sundry nersoir/^^^^^^^^^ ^'^''''^ nu,.rchHn,l,Ho $I,()(H), not.. 
 
 • ^ ^ s;ifIi'it1,r;^iV""^ '"• ^'•^"^'' ^^"^- --^h *^^'^^ -"I LnnuHlintoIy 
 
 ^'^ '^^'cLt'un't ftT-^S''' 'T •^•^^:''""*«^^ "'y '"•*« 'tgHin^t IlHiTiH for f 1,(MK) • 
 aiHcount ^l/.50, cush roceivtul $082 50 iifi,'""', 
 
 CH^-l, )i?l 000 n.erdmndiHo $500 ; Imlnnce to roumin on account.^ 
 
 note for insurance ..n do. $19.35 "' '''"'' •^•^*^-^^^' '""^ «'^^^' '"y 
 
 Liai>iSSr^;'!fi:;2t|5--;?^« --amg ,. they Hro " Resourd>s und 
 ft. Post all the items in No. 3. 
 il State the object, and briefly describe the process, of closing the Le.lgur. 
 
 THIBD CLASS, 1886. 
 
 2. 
 
 intry int(; Double Entry Books ? 
 Trial Balance. jj^. 
 
 Cr. 
 
 Stock 
 
 Bills Receivable . . ' 
 
 Cash .'.'.".".'.".' 
 
 Xff.^chandise (Amount unsold $V'2ni6 
 
 lidls Payable \ 
 
 John Mason 
 
 Peter Smith ,[[] 
 
 Robert Pendergast ......... 
 
 Charles Ityan " _ 
 
 lixpense 
 
 $ 881 
 
 00 
 
 $5000 
 
 00 
 
 1500 
 
 00 
 
 1000 
 
 (K) 
 
 5794 
 
 07 
 
 4800 
 
 00 
 
 3500 
 
 00 
 
 2769 
 
 50 
 
 1500 
 
 00 
 
 1750 
 
 00 
 
 3(M) 
 
 00 
 
 176 
 
 00 
 
 4000 
 
 00 
 
 1600 
 
 00 
 
 
 
 384 
 
 00 
 
 
 
 483 
 
 00 
 
 375 
 
 83 
 50 
 
 
 
 •1! 17851 
 
 $17851 
 
 60 
 
 •if 
 
 ir 'H 
 
 !&! 
 
 
164 
 
 BOOK-KBKFING. 
 
 / (a) Make out (from the foregoing) a statement of Losses and Gains. 
 ' (6) Make out (from the foregoing) a statement of Resources and Liabilities, 
 (c) Explain the terms : Stock, Bills Receivable, Expense. 
 
 3. Journalize : 
 
 (a) Bought a quantity of Broadcloth in company with John Smith, $260 ; 
 
 paid cash for my half, ^126. 
 (6) Commenced business with cash, $1,000 ; notes against sundry persons 
 
 1500. 
 (c) Thomas Jones has made a draft on me at 30 days, which I have accepted, 
 
 for $140. 7' 
 
 4. Post the entries in No. 3. 
 
 5. What is a Bill of Exchange ? What are its chief legal requisites ? 
 
 6 Name and describe the books that are admitted as evidence in Courts of 
 Justice, and state the facts that must be proved to entitle a person's book« to l)e 
 received in evidence. . 
 
 COMMERCIAL COURSE— SECONr CLASS, 1886. 
 
 (a) What is meant by negotiable paper ? What does it embrace ? 
 
 (6) State the nature of Bonds, Mortgages, Debentures, power of Attorney. 
 
 What are the original parties to a Draft called ? 
 
 (a) Brown of Toronto gives Smith a Draft on Green of Hamilton, for $50<> 
 
 payable at sight. Write the Draft. 
 (h) The Draft has hem returned to Brown as protested for non-accei^tance. 
 
 Explain this expression. 
 Journalize in full : 
 
 (a) Borrowed from Bank $600 for 2 months ; gave in payment note for 
 the amount, A^ith interest at 7% per annum. 
 
 (b) White & Co., who owe us a balance of $1975, have compromised with 
 their creditors at 75 cents on the dollar ; we have received that pro- 
 
 • portion of their indebtedness in cash. 
 
 (c) Wm Jones, against whom we hold a note for $300, on which has ac- 
 cumulated $17 interest, has permitted' the note to go t(j protest, wo 
 paying the protest fees $1.75, in cash. 
 
 (d) We have compromised with Wm. Jones for the note and interest 
 above mentioned, receiving, in full payment therefor, in cash, 33|,o ^'i 
 the face of the note. 
 
 (e) Discounted for Robertson & Co., their note for $3000 & 90 days ; dis- 
 count off at 8%. 
 
 Post the items (c) and (d) in No. 3, using properly ruled spaces. 
 
 ^. State the object and briefly describe the process of closing the Ledger. 
 
 6* State the chief provisions of a Partnership Contract. Name at least three 
 ways by which a partnership may be dissolved. If a salary y^ allowed one ..f 
 tlid partners, by whom is it paid i 
 
 7. Johnson's account on our Ledger stands as follows : 
 
 D. 
 
IiOOK-KKKFI\(;. 
 
 165 
 
 DEBIT SIDE. 
 
 Apr.! 1, 1885, Mdse. at 3 mon, $375 ; May 17, 1886, Mdse. at 4 mos., «600. 
 
 CREDIT SIDE. 
 July 1, 1885, Cash, $200 ; July 15, 1885, Cash $100. 
 
 Shew by equation when the balance of this account is cluo,-giving full work 
 S. Write the following documents : ^ ^ ^• 
 
 (a) An advertisement applying for a situation as accounUint 
 {0} A circular to your customers announcing removal of business to n,<,r« 
 
 commodious quarters, and inviting them to visit you 
 (c) A telegram not exceeding ten words to be sent to Brown A Co Monf 
 real, ordering that Hrm to send you by express four .«!« /f I 
 boots, and to draw on you at 10 days' si Jht ^ ^'"^'' 
 
 SECOND CLASS, 1886. 
 No^^^S^S^-f,JSy^-iJ;-^ .He .or. o.. 
 
 m Jnt^B^ c:^o? T^X tt^rTS^rL^^^^^^^^^^^^^^ V^ 'r^ r ^-•«»- 
 Credit, Protest, Tariff. '^'*"*'®'^"' ^^n^^argo, Hypothecate, LKpudate, Letter of 
 
 2. Of what does a business transaction consist? In a striotW n^oi. k. • 
 what accounts only are necessary / strictly cash business 
 
 3. Journalize : 
 
 ^"^ ' tt ttTonel^tlio. ^'^"'""^ ''^" *'-^ ' ^'^''' «"'^- ^-- -turning 
 
 (h) I>^";f« buys from me : 10 Hhds. N. O. Molasses 625 gals. @ 40e • 29 Hf 
 
 Ch. Ool. Tea, 1000 lbs. @ 50c • 17 baas TliV. f'^«v, i^r^ A ' "*• 
 
 , He pays $500 in cash, gives hi^ LSor^ '!] ,^^ ^^ t\ ^^'^ 
 
 by an order on Thompson, which ^Jronr^so^eceptl ^'^' ''^ '''^"'^^ 
 
 ^'^ ^|4!S).^''^' ^'' ""'" ^'^''" "^"*^"'"^'^' ""^ ^ ^"^'^^ '"^« ^ discount of 
 4. Referring to No. 3 : 
 
 (a) Write the Advertisement, the Note and the Order. 
 
 (b) Make out Dunne's bill of goods in proper form and hsm it «c 
 
 of your method of folding and fi/ing^bilsiness paper^ * '^''""^" 
 
 (c) Wnte as for Ledger use, the titles of the different accounts named in 
 ((0 Write a letter of introduction incurring liability. 
 
 5. What are the different senses in which the exDresmot, " rti^^r.,,^4.- xt ,, 
 rnay be taken ? Name the principal parties toTpZisso^No^^^^^^ 
 their respective obligations. ^"""''^ory x^iote and sttite 
 
 6. Give Day Book entries for the following : 
 
 (a) Merchandise Dr «in/u» 
 
 To iiills Payable ■.■■■.■.■: *^^^ ..^ 
 
 " Cash ^^00 
 
 400 
 
 
 I'll 
 
166 
 
 UUOK-KKEI'INU. 
 
 (6) Dash Dr $1018 
 
 To Bills Receivable «1()00 
 
 " Intercut 18 
 
 (c) LosH and Gain Dr |150 
 
 (;asli, " KK) 
 
 To Bills Receivable $250 
 
 7. Give the principal means of detecting errors in posting. Briefly state how 
 you would correct errors in the Day Book, Journal and Ledger, respectively. 
 
 8. In balancing his books what facts must the merchant 'ake into considera- 
 tion in order to obtain a just view of the state uf his affairs 1 
 
 THIRD CLASS, 1887. 
 Note. —80 per cent, of the Book-keepings and Writing to constitute a full paper. 
 
 1. "The Gazette Printing Company (Limited)." Briefly explain. 
 
 2. I commenced business with a capital of $800. At the end of three nu nt'is 
 my books exhibit as follows : — Cash on hand $'.C>(>.28 ; James Henry Dr. ;^2it, 
 Cr. $140; Petir Dodds Cr. $28.40; Wm. Hicks Dr, $175, Cr. $250; goods on 
 hand worth S^SOO. Make oiit in proper form a statement shewing my present 
 worth nnd my net gain or loss. 
 
 3. What is meant by Taking Stock? Negotiable Paper ? Days of Grace? Suiple 
 Goods i Tariff" I Business Transivction ? Blank Credit ? 
 
 4. You are living in ISfontreal and acting as agent for W. P. Stirt of Hamilton, 
 who sends you JoOO bbls. flour to sell on his account and risk. You »I: .po.se <»f 
 the flour as follows : Jinie 10, 1880, Sold Audrow Wiley, on his n<»te (^ 30 days, 
 600 bbls. at ^(5.75 ; June 15, sold Peter Curphy, for cash, 500 bbls. @ $("..50 ; 
 June 20, Sold JolinT. Radigan, for cash, 500 bbis. (<i> $<).45. You paid charges : 
 May 1st, I'reight and cartage $1275 ; storage and insurance, $57.30 ; your own 
 commission $240.25. Make out an Accoiuit Sales from above data, and write a 
 letter, to accompany the same, to y^ur employer. 
 
 5. Derive the Day Book entries from the following Ledger Account : — 
 7>7*. Merohamlise. Cr. 
 
 1886. 
 Feb. 
 
 1 
 1.-) 
 
 To Robt. Johnson. 
 " Cash 
 
 
 « 
 
 c. 
 
 1 
 
 ; i.s8(). 
 
 <■ 
 
 9 
 
 800 
 
 00 
 
 Feb. 
 
 5 
 
 12 
 
 3:)0 
 
 00 
 
 (1 
 
 9 
 12 
 
 By Bills Receivable 6 
 ♦' (Jeo. King ... I 8 
 " Cash 9 
 
 $ 
 
 c. 
 
 150 00 
 275 ! 00 
 400 I On 
 
 6. («) Write out in full the following draft : 
 
 St. Catharines, May 12, 1887 ; Amount, $500 ; Pay-o, Richard .fepson ; Time, 
 at Sight ; Drawer, Yourself ; Drawee, Wm, Tremlett, Toronto. 
 
 (6) YxjU have just commenced biisiness in the Boot and Shoe line. Write a 
 circular letter intended for public distribution. 
 
 7. Journalise ; 
 
 ((t) Bought of Zealand & Co., on credit, 400 lbs. lar«l ® 13c., 140 lbs. Soap 
 @ 7c,, and 1000 lbs, of pork at 10c, 
 
BOOK-KEEPING. 
 
 167 
 
 Cr. 
 
 c. 
 
 (6) Sold Sharp a.ul Swift (»u their note ® 60 days, 2100 lbs. sugar® 6c., 
 ana 540 lbs. tea @ 65c. e ^^r . , 
 
 (c) ^«/^«^«d^S^'^«''P & Swift's note for 3 months, charging them $6 interest 
 8. Post a and 6 items of No. 7. 
 
 SECOND CLASS, 1887. 
 
 NoTit. -75 per cent, of the value of this pa,>er counts 100 marks-the maximum. 
 
 C D^fin■''.h*J'''"'T'^^^^^,^ ^''^^ '^ ^''^^ (non-negotiable) in favor of 
 Idv^nf. three months, signed A. Ji.. and dat. d February 28th, 1887. What 
 
 advantage would A . B. gam by dating the Note March 1 st ? v/ / 
 
 2. " Ontario Bank Dr. to Cash i^lOO." Fully explain. ^ O^f ^ 
 
 3. Journalize : ^ 
 (a) Lost by fire merchandise to the value of $200. 
 
 {h) Received for petty sjiles $45.75. 
 (c) Paid Clerk's sidary for 3 mos. $150. 
 
 {d) Sold Uoffs&Co. my house worth $2,500; received in navment their 
 note for $1,000, cash $1,000, balance charged to their account 
 
 ^'^ '^proSs^i^*'"^ '^''"'""^' ""^' '^ ^"•'' '"""'^ ^" niy favor; net 
 
 4. Post all file items in No. 3. 
 
 canitaTaid' Tn , '^""^' ^■"^ " Partnership for one year. Smith furnishes the 
 capital and Jones gives his time to the business ; gains and losses to be divided 
 
 wii;naiaw8^1,5U0. At the close of the year they have : Cash $3 000 Ppr«,m..i 
 
 p\rn::flS%T^r^^-^ 
 
 paJL^Vc^pitaUt^Sg" ^"P^^ '^^" ^'^""^^ *^^ ^^"^ -^ loss, and each 
 
 6. (a) Write an advertisement under the her ling *' Book-Keeper Wan d " 
 (6) Write a letter to your employer askiiiL mure wages (giving reasons), 
 (c) Write a receipted grocery bill for, say . .ght items. 
 
 7. (a) Briefly indicate the means thr.t book-keepers take in order to ren.lilv 
 
 tra* (. a transaction from one book to the other. 
 
 {b) Stat !iow the following accounts are balanced : Mdse., Expense, Loss 
 ana Gam Stock. ^ .•->-> 
 
 (c) Describe your method of making out a Trial Balance 
 
 COMMERCIAL COURSK-SECOND CLASS, 1887. 
 
 KoTB.-/;, per cent, c the vahie of this paper counts 100 marks-the maximum. 
 
 1. What is meant by " Balance of "mde ? " When the balance of tmdfi ,'« 
 against a city, liow can it be settled ? ^® "* 
 
 11 
 
 ;,:ifi 
 
 HI 
 m 
 
168 UOOK-KKKFlNll. • 
 
 2. Makt) i)»t ii BjiLanoo Sheet in complete form from the followiujj data : 
 
 Trial Balance. 
 
 Dr. 
 
 Cr. 
 
 Casli 
 
 Bills Ilecoivable 
 MerchandiHti . . . 
 Bills Payable . . . 
 Win. Simple . . 
 Heal Estate . .. 
 John Murphy . . 
 Peter Brown . . . 
 Henry Johnson . 
 
 Expense 
 
 Stock 
 
 17 150 
 
 00 
 
 9 1415 
 
 4r)(K) 
 
 00 
 
 liMX) 
 
 8150 
 
 25 
 
 12110 
 
 2500 
 
 00 
 
 ;iOoo 
 
 175 
 
 00 
 
 
 4000 
 
 00 
 
 8576 
 
 1290 
 
 00 
 
 4}K) 
 500 
 
 6(M) 
 
 (K) 
 
 1000 
 
 210 
 
 1)5 
 
 5<M>0 
 
 20 
 <K) 
 70 
 00 
 
 00 
 OO 
 00 
 00 
 
 00 
 
 3. A owes B $100, and pronuses in writing to pay the debt iu wheat at 80c. 
 a bushel, to be delivered within 30 days at B's residence. Write the document 
 What name would you give it ? Is it negotiable 'i Reaaon. 
 
 4. Journalize : 
 
 (a) Paid, per chock on Bank of Hamilton, Brown & Co.'h draft on us for 
 
 $1500. 
 (/)) Received cash in full for T. Bowld'.s note in our favor ; faco value> 
 
 $1700 ; interest on same, $2.04. 
 
 (c) John Hardy, our agent, has sent us an Account Sales for merchandise 
 
 disposed of by him to the amount of $1200, with cash for same, and 
 we pay him his commission, 2^ per cent, on this amount. 
 
 (d) Error discovered in charging Duncan & Co. with flour sold to G- Pass- 
 
 more, $100. 
 
 (e) Received from Thomson, for sale on joint account and risk, goods 
 
 valued at $840 : paid freight on same $100, storage $()0. 
 
 { f) McNeil & Co. renew for you half the amount of a note for $500, duo 
 to-day. You pay $250 cash, and give them a new note for remainder, 
 with interest, $3.50. Give McNeil & Co.'s entry. 
 
 • 5. Post the items in a, h and (i, using properly ruled spaces. 
 
 <t. (a) Write a letter to Jones and Brown, Kingston, acknowledging receii)t 
 of shipment of wheat from them, and referring to the condition of 
 the market. 
 ,• (6) You have commenced business as a Real Estate Agent. Write an 
 appropriate advertisement. 
 
 FORM IL— THIRD CLASS. 
 
 Clinton High School, June, 1887. 
 
 1 . What is meant by Day Book ? What is necessary to constitute a proper 
 Day Book entry ? 
 
liUOK-KKKFIN(i. 
 
 / 
 
 16!) 
 
 20 
 W 
 7(» 
 00 
 
 00 
 W 
 
 uo 
 
 00 
 00 
 
 'J. Dofiiio Triul Balanoo. Explain fully its u.se. Di.stinguiKh l)utweou TiUl 
 Jiiilanco ttiul mlauco hhuut. 
 
 :\. Explain the tonuH : Inv«nt<.ry, Blank Credit, (JHiniMhuo, Lion, VlmtUA 
 2sitt^, Dubunturu and ConHignment. 
 
 4. What afcountH must ho cloHod at tho ond of a torui of buHincHM ? Why ? 
 r». What ttio tho advuntjigoH of Doublo Entry ovor Sin^lo Entry i 
 0. Give ruloH for journalizing Drafts. What is tho Drawor's ontrv whon lu> 
 drawH a Sight Draft puyublo to hinisolf. 
 
 7. What iH a partnorship bu.sinos.s ? Show how tho oponing entrios aro niado 
 in Huch a businoHS, and also how tho gains and Iohhos aro disposod ,,f, 
 
 8. Journalize : 
 
 (a) Sold Mason from White's Consignment No. 1, gofxlH valued at ^1(MJ<> 
 
 Rocoivod in [)art payment Jones' draft on Tayh)r for ^10<>, duo in (Mi 
 days, at a discount of 0/ per ainunu, and Smith's chock for $bO(). 
 
 (b) Hodgson returned H15 worth of goods, for which wo gave him our chock 
 
 on tho .Bank of Commerce. 
 
 (c) Lost a |!10 bill. Paid for advertising it cash 26c. The finder returned 
 
 tho money and we gave him 50c. reward. 
 
 (d) At the ro(piest of Baker we added to his consignment 400 bushels of 
 
 wheat, which wo purchased from Miller at 85c., on a commission of 
 2%, giving in full payment our Note due 1 year hence at a discount 
 of 6%. 
 
 (e) Write the Note given to Miller. 
 
 !♦. You owe W. W. Baker, Hamilton, on account $(540, a statement of which 
 ho lias sent you. Write a letter to him, enclosing a draft for $400, and asking 
 for an extension of time for tho balance. 
 
 1 '. 
 
 FORM III.— SECOND CLASS. 
 
 Clinton High St;HooL, Juno, 1887. 
 
 1. Explain the following: Voucher, Lease, Mortgage, Protest, Stjiolo Goods 
 Tariff, C. O. D., Fol. and Hit. ^ ' 
 
 2. John Smith owes James Taylor $149. Smith fails and makes an assign- 
 ment, his resources being $9,000, and his liabilities $21,000. Write Tayl^'s 
 receipt on receiving a check on the Bank of Montreal for his share. In what 
 case would it not be necessary to give a receipt ? 
 
 3. Journalize : j^ 
 
 (a) Bought of H. Corbett, a House and Lot for $700. Gave in payBlllt 
 
 goods from A. D. Burwash's Consgt. No. 1, $100; my check on Bank 
 of Commerce for $200, and my note at 30 days for balance. 
 
 (b) Discounted at bank, M. L. McPherson's note for $400, due 30 days 
 
 hence, at 6%. 
 
 (c) Prei\ud my note for $500, held hv J. C. Armstronir : time f" >•'"• ''■a 
 
 ds. ; rate, 6%. Prbceeds paid with H. A. Park's sight draft for $150 
 and my check on the Molsons Bank. 
 
 il 
 
170 
 
 ;> 
 
 llOOK-KEKFING. 
 
 {d) Renewed for six mouths, my note in favor of John Puce for $.'i(X), with 
 interest at 8%. 
 
 4. L. P. Howell is a dry goods merchant in Aldgate. 
 
 (a) Write his letter to Muir & Co., London, enclosing t^rder for his s^Mring 
 
 goods, and asking them to draw on him at 30 days' siglit. 
 
 (b) Write Howell's circular, announcing the arrival of tlie goods. 
 
 (c) Write the draft and accept it for Howell. 
 
 5. Describe the process of closing the Ledger. 
 
 (i. Fill out the Balance and Loss and Cain accounts from the foUowinir : 
 
 ., 
 
 Trial Balance. 
 
 l)r 
 
 Cr. 
 
 Proprietor 
 
 Cash 
 
 Bank 
 
 Merchandise (unsold, $360() 
 
 Bills Receivable 
 
 Bills Payable 
 
 Interest and Discount 
 
 Expense (office funviture on hand, i$3o) . 
 
 K. C. Monroe 
 
 A. B. Ross 
 
 Loss and Gain 
 
 Real Estate (unsold, ^2500) 
 
 37 
 
 6182 
 
 1987 
 
 r.792 
 
 17()3 
 
 29 
 
 62 
 
 102 
 
 300 
 
 63 
 
 4S26 
 
 ._. 
 
 ■' ' 
 
 
 7584: 
 
 39 
 
 3280 
 
 36 
 
 10(10 
 
 
 2915 
 
 40 
 
 1192 
 
 60 
 
 ; 342 
 
 75 
 
 ! 45 
 
 36 
 
 
 
 i 1300 
 
 
 i 1066 
 
 J 5 
 
 12 
 
 70 
 
 240S 
 
 30 
 
 80 
 97 
 
 :;o 
 
 FORM IIL— COMMERCIAL COURSE. 
 
 Clinton High School, June, 1887. 
 
 1. Explain the terms: Shipment Co., Mdse. Co., Account Sales, Manifest, 
 Protest, Power of Attorney, Coupon, Tariff and Blank Credit. 
 
 2. State the advantages of a special column joutnal. Rule a form thafc you 
 would recommend for a retail boot and shoe business. 
 
 3. If at the time of closing your books there sliould be a number of open 
 consignment accounts, how would you proceed to close them ] Explain fidly. 
 
 4. Give examples illustrating your methods of making entries in the following 
 cases : 
 
 (a) Discounting Notes. 
 
 (6) Renewing Notes. 
 
 (c) Shipping goods for sale on joint account. 
 
 5. Whai; are the requisites of a Promissory Note ? What is meant by 
 Indorsing a Note ? Shew three different forms of Indorsement, and state the 
 effect of each. 
 
 6. Make out a Balance Sheet from the following : 
 
 A 
 
IMt 
 
 80 
 !I7 
 
 ;;() 
 
 „ 
 
 / 
 
 BOOK-KEEPING. 
 
 Trial Balance. 
 
 A 
 
 Dr. 
 
 S 
 
 Cr. 
 
 Proprietor .... 
 Merchandise . . 
 Manufacturine 
 Cash 
 
 Bills Receivable . . . 
 
 Bills Payable 
 
 A. S. Taylor . . . 
 
 R. R. Wells 
 
 Kenneth McKenzie 
 Bank 
 
 Tools and Machinery 
 
 Loss and Gain 
 
 Expense 
 
 Inventories. 
 
 Merchandise «!Q(uin 
 
 Manufacturing (xMaterial) ... T^oo 
 
 Tools and Machinery .... jlJJJ; 
 
 8 
 
 3300 
 
 2r)08 
 
 1800 
 
 5)0 
 
 18 
 13 
 
 80 
 
 2735 
 
 1408 
 
 1 
 
 50 
 
 95 
 
 72 
 
 50 
 60 
 
 05 
 
 13 
 «J5 
 
 8400 
 
 981 
 
 340 
 
 804 
 
 125 
 
 1340 
 
 27 
 
 22 
 
 43 
 
 3)1 
 
 3 
 
 42 
 
 40 
 
 ♦)0 
 50 
 
 4H 
 
 {B) Bought of L._ M Peirce on my Note at 30 days 500 hl.ls Flour at 
 cash $25 ^ '"''"""' "^ ^' ^' ^''" ""'^ "^>'^^'f- P'^'^1 f^-^'^">t i^' 
 
 (C) Sold Wm Symington the whole of t!io Fl.,ur beloivin.- to n.v ioint 
 tor f 1100, Brown's Note at (JO days for ^lOW) Mr^T'n, Vn ^r*^"- 
 
 ana selling is Z /„ . Charges for storage, Ac, $30. 
 (^) Remitted my check on Molsons Bank to settle in full with Bell 
 (a) Give my Journal entries. 
 
 ^^^ ^Co'iks.'''""""'''''''''''' *^ ^- ^^- ^"" ^^ ^'^^^"g ^^^' ^^^^'^^ t- rh. 
 (c) Make out the Account Sales in proper form. 
 00 Give H. K, Bell's Journal entries. 
 
FRECIS-TVRITINa 
 
 i-fi 
 
 AND 
 
 O 
 
 b( 
 cl 
 
 so 
 T] 
 re< 
 sil 
 
 AVf 
 
 pr 
 
 INDEXINO. 
 
 C(»l 
 
 .sta 
 
 SU] 
 
 ifc] 
 ■ wli 
 of 
 me 
 in 
 req 
 upi 
 
 
 
 . (' 
 
 ide} 
 
 sun 
 
 .arr.n 
 the 
 
FR±;CIS -^WRITINa. 
 
 CHAPTEE I. 
 
 INTRODUCTORY. 
 
 One writer i, otecure on ZZHlU^V^ "117° tke XfT,""'" """"■» 
 being partial y hidden among a mult pfijty f ^'orf, .'tSe ''",r'"?''f'' 
 
 :!r;rgri?g\?rsrverf "4r *--"'* *^*'4h 
 
 The.tl,denfn,ustttsXp3e?S;ttrh7rtr'^E^^^^^ Tr™'' 
 
 want the foie and bVut^ S L'%lf ■■'Vt^ " '^ w\^ 
 
 l.resent some of the ways in which langS>^ n.ay L ^ : JJ, "™ "''»P'™ " '" 
 
 To abridge or summarize a piece of comDosif - n ia f .^ 1^ 
 fewer words than are contained in the orTgS The lenJroTth'' "''"""^^ "^ 
 compared with the passage summarized wiU depend o"f^ lSfV"f""'^'^ *'' 
 stances, one or two of which may be mentionEl a ^'^'-'^^Y of ca-cuni. 
 
 superabundanceof wordstoexpretLheir^2.r, 1 i ^1 '"''"'^ ""^^^ "«« of a 
 it is evident that there wiU be ?rsiderable d?^nn^^^^ ■'''^''' 1^*^ *^*^"^ ^^^^A^' 
 ■ which the compositions of different wrTersca^^^^^^ 'i •^'^'? *^ *^^ ^^'^^"^ <^^' 
 
 of condensation will depend krgelj on 4rch^^^r^^^^^^^ 1^^^- 
 
 ment In one case it miy be defiraVe to cont^' he meantjTt?^ ^^''''^] 
 
 applicable in aU cases ; or, ^lo7r^:£^JZ.:^^:i:^ ^'' '' 
 
 Tlie follownig general directions may help to guide the student • 
 ^^^(a^Read the passage carefully, with a view to comprehend its meaning as a 
 .^(^ Read a second time, underlining the clauses which contain the important 
 
 (c) Write short, sentences expressino- the main r^oinfo +^ i i 
 
 summary. ^ ° ^ "^^"^ P*'^^'^^ *« be brouglit out in the 
 
 (d) Combine these sentences in connected anrl ronduUi^ f ^ t • 
 arrange them in such a manner that X Ipn. .„l ? • ^'•'''"' taking care to 
 the summary ..ill be the same 7. Sl^! ^^^i:^^!!}!';^':'''^ ^^^'^^^ '^^ reading 
 
 (e) Make use of as few words as possible to'express°the meanin^'dearly. 
 
174 
 
 PK^CIS-WIUTINU. 
 
 t'i 
 
 I 
 
 Ah tho highest degree o: hrevity attainable without .sacrificing completeness 
 Hiul perspicuity is desired we shall endeavor to shew in a general way how tins 
 may be secured. A bridgment may be effected as follows : 
 
 (1) By using a word instead of a phrase. 
 
 (2) By using a wont or jihrase instead of a clause. 
 (.'i) By removing tiiutology, periphrases, Sec. 
 
 (4) By removing ornament. 
 
 (5) By omitting what is unimportant. 
 
 INoTK.-The student will rememher that one of the chief sot.rcep of brevity is the emplovmc of 
 « or*8 which are comprehensive in nieaninf. j cuipio^ mi or 
 
 PHRASES. 
 A plirase may often be replaced by a shorter one or by a word. 
 ■'At the present time it is impossible for me to go." 
 
 '1 lie ])hrase, at ihn present titne, may be replaced by the adverb mio. The 
 ^(.•ntence can therefore be j)ut in the form : " It is impossible for me to go kow." 
 
 It cm Ije condensed further by recon.struction M-ithout much change of 
 meaning: " I cannot go now." 
 
 "The Works of Shakspeare are read by everybody." 
 
 Instead of //*«■ (n,rks of Shukffpiune, we may substitute, Shakspeare, and by 
 using the active voice, instead of the passive, we eliminate the words are and l>ij. 
 The sentence will then be : " Everybody reads Shakspeare." 
 
 NoTK.-Tho student is expected to study carefully the examples which follow \''heiuner an 
 alteration in the shade of meaning o.i'urs, it should he pointed out-a verv imiiortant matter in 
 learninj.' to suiinnarize. 
 
 EXAMPLES. 
 
 1. He lives lieie. 
 
 •S. He was really an excellent pianist. 
 
 1. He lives in this place. 
 
 2. He was in reality an excellent 
 performer on the piano. 
 
 3. The man ])erforms his tiuties at 
 all times with faithfulness. 
 
 4. I considered the matter at that 
 time. 
 
 3. The man aUays perforins his du- 
 ties faithfully, 
 
 4. I considered the matter then. 
 
 5. He api)eared to be a persf>u ideii- 5. He fippeared to be a farmer, 
 
 tified with the agricultural interests. 
 
 fi. At the end of the year the tef.cher 
 \va.s nuule the recipient of a handsome 
 recognition of his services. 
 
 7. All my efforts in the direction of 
 .^^rudying mathematics proved ineffect- 
 ual. 
 
 8. More work could be done at that 
 time than can be done at present. 
 
 EXERCISES. 
 
 1. In what place and at what time shall I meet you. 
 
 2. The fruit of the gof>se berry was very much thought of in t'.iose days. 
 
 3. He is a messenger sent by the king. 
 
 (>. At the end of the year a hand 
 some i)resent was given to the teacher. 
 
 7. All my efforts to s^udy mathe- 
 matics failed. 
 
 8. More work could be done then 
 than can be done now. 
 
'm 
 
 PlllX!IS-WiaTlN<J. 
 
 175 
 
 clmi^I^*^""'"'^*'''^ '*'"'""'*"'' ^^""^"^ highly api)recmfced l.y tho people under liw 
 
 5. The reports iimdo by correspondents of the Bureau, ut tlie beginniuK of 
 November, showeu that the cr.ip had at that iiuie a very promising appearance 
 ni every part of the Province. s> n 
 
 6. The staten.ent testifies to the fact that our soil is suitable for tho produc- 
 tion of cereals. * 
 
 7. The barn buil.liugs are log, but exceptionally good of that sort, being made 
 <>t Jarge, solid cedar h)gs. " 
 
 8. He delayed from time to time, till opportunity came to an end. 
 
 i>. That|)ers..iinvaile.lhiuisolf,,f every opportunity «.f raising his brother in 
 tJie esfimation of the people of the vicinity. 
 
 10. Your appliaition will be of no avail, as you are beyond the maximum age. 
 
 CLAUSES. 
 
 A clause fietpiently takes t]iei)Iace of a noun, adjective or adverb." Such a 
 clause may sometimes be replaced by a word or plirase. 
 
 " He had a longing for a sight of the country in which he was born." 
 Instead of the adjectival clause, in which he vas born, we may use the adjec- 
 tive, 7utt,ve. Also instead of, had a lowjingfor a d,,ht of, we may say lo,ujed to 
 ■■<"''. The sentence then becomes : " He longed to see his native country." 
 " Because I was not with him at the work, he did not attend to it properly." 
 Mif al>.,'Hcem:iy here be used instead of, becfm.ie I was not ivifh him ; and the 
 remainder of the sentence niay be replaced by, canml him to ueglect it. Theai 
 the sentence will read : " My absence from the work caused him to neglect it " 
 The context might be such as to permit of still further abridgment, thus : 
 My absence caused him to neglect the work." 
 
 EXAMPLES. 
 
 1. He did not let us know what his 
 mind is in regard to the matter, 
 
 2. Boys who are attentive to their 
 Nt^udies generally succeed at examina- 
 tions. 
 
 .'1 We should be well satisfied where 
 we are. 
 
 4. That the story is worthy of being 
 belieyed has never been affirmed. 
 
 5. Men who have wisdom and virtue 
 are nobler than men who have wealth. 
 
 6. Theyacti :! ii, that strange man- 
 lier that they :-iig!u have notoriety. 
 
 1. He did not let us know his mind 
 on the matter. 
 
 2. Studious boys generally succeed 
 at examinations. 
 
 3. We should be well sjitisfied liere 
 
 4. The credibility of the story has 
 never been affirmed. 
 
 5. Wise and virtuous men are nobler 
 than wealthy men. 
 
 6. They acted strangely to be noto- 
 rious. 
 
 1 i.1 i. ^u • r: ; ^" *^- The Pharisees did all their reli- 
 
 ^aous works that they might be seen of gious works ostentatiously. 
 
 8. Those who live in a country 8. The citizens of a connh-tr „iwmid 
 
 should endeavour by every moans to try to Oxiforce its laws 
 nave its laws ..arried out. 
 
 7. The rhari:-'eea did all their reli- 
 
 
 i Kl 
 
 i'li 
 .1) 
 
 I 
 
 % 
 
176 
 
 ri<K('I.S-\VIUTIN(}. 
 
 EXERCISES. 
 
 1. Where is the man tliat can do liis work better than I ? 
 
 2. It was greatly in liis favor that he was honest. 
 
 3. For some tiine I have known of the fact that he was away froni home. 
 
 4. The fable of the dog in the manger, with which everyone is familiar 
 Illustrates the chara^cter of many men of tlie jnesent age. 
 
 5. I could xot consider favorably wliat you proposed. 
 
 6.^ I certainly do not jjlace a low estimate on a wojk which has been so vahi- 
 al)le to our race. 
 
 7. I found that through trai)-doors, which lay concealed in the bricb'o. tlu^ 
 passengers were dropping into the tide, which Howed underneatli it. 
 
 8. Every man who thinks for himself listens Avith amazement to his views 
 which are absurd in the extreme. 
 
 U. Are these the doctrines which were inculcated by Mahonimed ? 
 10. Every concession which was tended to satisfy Mie demands which tiiev 
 justly made, was opposed by the jjarty that held the reins of (iovernnient. 
 
 eemoval of verbosity, &c. 
 
 Verbosity is a superabundance of language to express what is intended. 
 
 The use of too many words pronerally ciis."? weakiH33s. Tlie renierty for verbow cotniHisitioi, is (<> 
 re<:onstruct tne whole, usiiif,' terser lanfjfuajjre. Verhosity, whmi not carViod to excess is allnwahle in 
 some cases on account of the effect prwlnced. " The one wiio Kave ms hirth, nursed me and tenderlv 
 oared for nie durmtr my ea'-'''..T years has been snatched from me by the hand of Death " conveva 
 tlie same idea as : " My mother has died," but produces a diflferent cfcct. ' 
 
 Tautology is a repetiticm of the saine idea in different words. 
 
 .. ^''^";".*^°'"'.V is always considered a defect, except when the idea is emphasized by the renei/.tioM 
 God 13 eternal, a:i!l His existence IS witiiont beginning and without end," is expressed by "fKid is 
 eternal," the latter part conveying no new idea. 
 
 rieonasm is the use of words which add nothing to the sense. 
 
 In the sentence: "They returned back again," the woi-ds "back again" add nothiii" to the 
 nieanmg ; they may, therefore, be eliminated. "^ 
 
 Circumlocution or periphrasis is a round-about form of exi)ression. 
 
 The sentence: ''At no period of the world's history has there appeared a more remarkable wtiius 
 than the ' Rard of Avon," is penphrastic. It may be written thus : " There never apnwired a more 
 remarkable genius than Shakspeare." i 
 
 EXAMPLES. 
 
 1. The man naid that the book- 
 keeper who kept the books of the firm 
 had absconded. 
 
 2. They need constant care all the 
 time. 
 
 3. The captain told us all al)out what „. . ..^ v,.j,^i„ ,.,,1,1 „„ , 
 he experience<l vdien he was on the of the Sandwich Islands. 
 Sandwich Islands. 
 
 4. Puch general intelligence and ex- 4. Such extensive general intelli- 
 tensive niformation in so young a per- gence in so young a person has fre- 
 son have frequently filled us with quently astonished v.s. 
 
 wonder and astmishment. 
 
 1. The man said that the book- 
 keeper of the firm had absconded. 
 
 2. They need constant care. 
 
 3. The captain told us Ids experience 
 
 i 
 
I'KKClS-WIMTINf;. 
 
 t I 
 
 5. Sir Walter Scott wftH as remurk- 
 ublu for iiuhustry m for Uilont. 
 
 a. Eminent men are both praised 
 
 •'». The author of the Waverley novels 
 was not only remarkable for Iiis talent • 
 lie was o<}ually remarkable for his in- 
 dustry. 
 
 6. If men of eminence receive re- n. Eminent men are 
 proaches winch they do not deserve, and reproacl ed ^^ustl^ 
 they likewise receive praises which are ""J"«"y. 
 not due to them. 
 
 7. The employer paiti off the men 7. The emnlovnr n^ul ,.»• i • i 
 who were working f(,r him. men. ^"^^'"y"'^ Paid oft his work. 
 
 EXERCISES, 
 re^sl^^;:^"""' '" '^''""""^ r"' i.nmediately proceeded to partake of some 
 
 u.ay itr ;S^h:S:L^:f '^"' '^ '"'^ ^^^ ^^'' ^' *'- neighbourhood where he 
 
 thouglV""' " •"""^"^'"•^ impulse, acted upon without premeditation or fore- 
 
 4. Fornird calculated that when once the iivevocable stor, Iv.rl iw , i 
 reconchation with her father and a handsome < owr^wou^^^^^^ 
 
 ™:{5;i! j£ ess Jsa stis s: iSS! 
 
 6. There are a good many hobbies for teaching language to d,.«f «..,f 
 which zealous and well-meaning enthusiasts ricfe, ], ft we 1 ave foun,? H 7""'' 
 ca.st-iron rules can be formulated for the guidance of insTnicC "*' 
 
 / . Tlus practice not only familiarizes them with correct forms of ^vr,>.« • 
 
 of^u^rl;:mfS::T?oJ l7J::t^!'!^z:^z:'''''T^'' *^« --'-^ 
 
 generilly demoralized condition returning of them again in a 
 
 9. In spite of the efforts of numerous opponents of vaccination in l«f 
 
 so persistently made, particularly in En^dand f„r th J ,?,\! m late years 
 
 practice, no unpreiudiced person havimr^fn' . ^liscouragement of the 
 
 the sub ect cai ri.sonabl/doubt re V^" 3"!^^^^^^^ "^-'^^.-e of 
 
 measure. emcacy ana \alue of this precautionary 
 
 10. From time almost immemorial mon in i-h^ TTocf ». e 
 
 have thought it meritorious t^rounce tl e enio^^^^^ """f "^^ PJ^'^' 
 
 and the ties of domestic and social relationshiT^^^^^^ of temporal comforts 
 ^t^^ fo.. the p„^™e of tuning thei^'Efc' Sg^rto^r^JiSl . 
 
 REMOVAL OF ORNAMENT. 
 
 si^r aen^^iZ:;^ J?hf^^?i^,r:f ±:^^^ ^^-t impo. 
 
 .npairing the rhetorical effect of theol^ii^ai; 'M^'Zi^i: SS^ tZ 
 
 111 
 
 ii 
 
 :i i 
 I i 
 
 I 
 
178 
 
 PRECIS-WRITING. 
 
 I!,: - 
 
 
 import of the passage as a whole can generally be expressed with sufficient 
 clearness to servo all useful purposes. Indeed, it seldom hapoens that the 
 reduction of a piece of composition of this character is required in actual 
 practice. 
 
 "We must not expect that our prayers shall penetrate heaven, unless they 
 are pointed with sincerity." 
 
 Instead oi shall penetrate heaven, we may say shall he heard by God, and instead 
 of pointed ivith sinccrlly we may say sincere. Now, by transforming the sentence 
 becomes, " We must not expect God to hear insincere prayers." 
 "Catch then, O catch, the transient hour, 
 Improve eacli moment as it flies ; 
 Life's a short summer — man a flower — 
 He dies — alas! how soon he dies." 
 
 There are two ideas brought out here, (1) that man shoidd improve his tim^, 
 (2) that life is short. The meaning might be expressed thus: "Improve your 
 time, for life is short. 
 
 EXAMPLES. 
 
 1. The former gained knowledge 
 easily by experience. 
 
 1. The former with easy hand col- 
 lected, as it passed by him, whatever 
 could add to his own stores, appro- 
 priated what he could assimilate, and 
 levied subsidies of knowledge from all 
 the accidents of social life and familiar 
 intercourse. 
 
 2. With equal nace impartial Fate 
 knocks at the paLce and the cottage 
 
 gate 
 
 3. The enormous waste of timber by 
 bush fires is, quite incredible to those 
 who have not witnessed the devasta- 
 tion of wooded Jands by this destruc- 
 tive element. 
 
 4. The trees are 
 mantles of white. 
 
 5. In six days God reared the mag- 
 nificent creation, turning the rude 
 chaos into symmetry, and pervading 
 it with life, so that beauty and anima- 
 tion succeeded what was shapeless 
 and inert. 
 
 EXERCISES. 
 
 1. Pride goeth forth on horseback, grand and gay, 
 But cometh back on foot, and begs its way. 
 
 2. On the morning of the festal day the roads are thronged with sledges con- 
 veying visitora to their destinations ; the brass bells which decorate the hardy 
 little Norwegian horses making a merry tinkling in the frosty air. 
 
 3. I have been taking a survey of your locality, and am actuated by aident 
 
 2. All men are alike subject to 
 death. 
 
 3, The destruction of timber by 
 bush fires is incredible to those who 
 have not seen them. 
 
 all shrouded in 4. The trees are covered with snow. 
 
 5. In six days God made the world, 
 turning ^hat was shapeless and inert 
 into a scene of life and beauty. 
 
PRECIS-WKITINO. 
 
 179 
 
 4. The snowdrop, foremost of tlw lovely train, breaks her way through the 
 frozen soil m order to present her early complimeuts to her lord. Dressed in 
 the robe of mnocency, she steps forth, fearless of danger, Ions? before the trees 
 have ventured to unfold their leaves. 
 
 5. Now although the Rev. Robert Vane did not aspire to bring any positively 
 undiscovered truths out of the storehouse of the liible, or to tickle the spiritual 
 palates of his hearers with the spicy flavour of heterodoxy, yet he had a happy 
 knack of clothing familiar teachings in a fresh and striking garb, and of appeal- 
 ing to those . erves, so to speak, in the great network of the brain which had 
 not lost their sensitiveness through repeated friction. The result was that 
 Avhenever and wherever he was announced to preach, crowds flocked to hear 
 lam, to have their spiritual atmosphere cleared by a breath from his revivifying 
 breeze of freshness. ^ 
 
 6. The wonderful perfume of some of these odorous flowers almost intoxicated 
 the visitor ; observing which, the fairy company hastened to lead him away from 
 their flower to their fruit gardens, where he regaled himself with the sweetest 
 and most luscious fruits imaginable. 
 
 7. Lucius Avory's heart withered within him long bofore he reached the end 
 of the letter. He let it drop from his nerveless flngois, and sinking into the 
 nearest chair with a groan, he buried his face in his hands. All the golden 
 fabric of fraud which he and his wife had built up with so much labour and 
 cunning, as at the touch of an enchanter's wand had fallen in ruins around 
 them. The avenger was on their footsteps, and soon would overtake them ; 
 before them loomed a future at whose blackness his soul shrank aghast. 
 
 8. And Ardennes waves above them her green leayes- 
 
 Dewy with nature's tear-drops, as they pass, '- -^ 
 
 Grieving, if aught inanimate e'er grieves, 
 
 Over the unreturning brave, — alas ! 
 
 Ere evening to be trodden like the grass 
 
 Which now beneath them, but above shall grow 
 
 In its next verdure, when this fiery mass 
 
 Of living valor, rolling on the foe. 
 
 And burning with high hope, shall moulder cold and low. 
 
 8. Yes ; I am old now, and chilly sometimes at night when the fire gets low 
 wearing a greatcoat even oivthe summer days, and shivering often when the 
 zephyrs fan my face. But I am kept young by my love for nature ; I woo her 
 as amorously as ever maid was wooed by swain, and she is not afraid to press 
 her rosy lips to mine, yellow and withered as they are, and to twine her lovely 
 arms round my neck. I love her for her hopefulness, for her inexhaustible 
 store of youth. Everywhere with love she rebukes poor mortals for sittincr 
 down sad with folded hands, and with a glad voice bids them be up and doing" 
 .She is irrepressible. You may crush her down with stony hand and plaster over 
 every vestige of her beauty, and then nay to yourself in pride of heart, « I have 
 rnadp a city, a place for commerce and traffic, and pleasure and sorrow ; ' and 
 yet, turn your back for an instant, lo ! a little biade of grass comes up between 
 the stones of the causeway and laughs in your very face. 
 
 OMISSION OF WHAT IS UNIMPORTANT. 
 
 When at.tfimntinor fn oliminnfo fiio ■r.Qi.j-c ^t n »^„„, _•._ ,^ i 
 
 .^ . ....... .sri..,...!,^, ^„„i;„, ..-i a paanayc cApruoaxjig riiu icss impor- 
 tant Ideas, the student will require to exercise judgment in determining what 
 
 ^ 
 
 t 
 
180 
 
 FHK<IH-\VHITIN<I. 
 
 these ftre. Tliis pre«ui,,,oHes a cIohf C(.nct.i.ti<.n .,f the mith i'h muaniiiK, »« xnoII 
 a8 a dmtincfc view, inouUlly, of what coriHtitutoH the framework, or main basis of 
 the composition. 
 
 This species of al.ridgment is Urgely cmph.yed in condensing correspondence, 
 nenorally speaking, business letters, es,,c.fiHlly, nre written in such a style as 
 not to admit of much mluction otlierwise. Kemembering this, and also the 
 fact that but little assistance can be rendeicl in ccmnecti.-ri witli this i,art of the 
 subject, the suudent will doubtless realise at once the importance of giving it 
 the closest attention. b h '" 
 
 "Reason, which is a priceless gift, guides men in the performance of every 
 duty which 18 re(iuired of them. ^ 
 
 The leading idea expressed here is that men are guided by rea^ani. Therefore 
 the sentence may be contracted thus : 
 
 "Reason guides men." 
 
 As the summary should contain only the important ideas, t must be the first 
 concern of the studunt to comprehend the exact meaniiig of the passage 
 Having done this, he wi 1 determine what is really essential, and endeavor to 
 express it clearly and l^rietiy. 
 
 EXAMPLES. 
 
 Those important faculties of sight and hearing, which are of so much use and 
 which procure us so many enjoyments, de.pnul vpou rnmdrs so extremelu 'small 
 that they mud he magnified to be visible. In the tongue the muscles are verv 
 numerous, and so implicated with one an*,tlier that the nicest dissectors cannrn! 
 trace them ; yet they are so arranged that they never interfere with each otlicr 
 n<>r interrupt the various offices of speaking and swallowing. In the other purtK 
 of the body the same admirable economy is preserved. The muscles are evn-n 
 tvhere diffused; they he close to each other, in layers, as it were over oi'ie 
 another, after crossing, sometimes passing through, ami even imbedded in one 
 another, y at each at perfect liberty to perform its peculiar office without inter- 
 ruptmg the power of its neighbor. 
 
 If the student will examine the foregoing paragraph carefuUy he will see 
 that the writer wishes to impress the following facts : 
 
 1. That muscles are minute and numerous. 
 
 2. That they are implicated with one another. 
 
 3. That they are found in all parts of the body. 
 
 4. That one muscle does not hinder another from performing its proper 
 
 The summary should give prominence to these ideas, and to no others For 
 that reason nothing need be said abcnit the importance of the faculties referred 
 to, or of the difficulty of dissecting the muscles of the tongue in particular. 
 
 Abridgment. 
 
 The faculties of sight, hearing, and sj.eech depend upon muscles microscopi- 
 cally small. Although muscles are thickly diffused thoughout the bodv beinj? 
 
 ui some parts even imbedded into ono another, each performs its function freely. 
 
 ' J;'^'*' 
 
HMHMMilMMm*:- ■j,imfi»t-^'t^-v 
 
 1 .11 h> 
 
 I'KECIS-WKITIVO. 
 EXERCISES. 
 
 181 
 
 IK 
 
 :nli^^;lVi:'r:^;,l;;^?™™^r^^r"-■^ 
 
 king with lonsriii.' ovos ut tl.H T.n..M <.f !. i ""^ *^"^" children, 
 
 ;v.fu .1, «,,.« j,,,,^4i;,;'„^'-,/,;:' - f --^^^^^^^^^^^ 
 
 ! >i£,% know 1 tt e of the i)iacc8 wh^m fl.« „V i ^ " ''' ' ^^^ ' •' *J"' i»- 
 
 Mu -ing. They huve IT^ ' ' p Is miT'on X'^^^^ "', *•'"/!' ^^"^^''^ "^ 
 
 tney do not know th.. , .l^HJl the tte "' '""^ "^ *'"• '"'^^'^^^ ' 
 
 J;ni;iiS;^SLr^t .:;; l'?::.^^^^ '-P-;f l-e ana 
 
 .f we n.ean to preserve inviolate t hose h,eHt7mn I H il "^f ' '"'t V ''" ^''^'^ • 
 heen ao h.ng ntundinc if wo ,,,;,.,?!..! I'^^'^^^K^'*^ ^'-r ^vhich we huvo 
 in whic h we\ .ve boen° .. J. ng ^^^^ ^l^^l^l^l ^Tf'"' *'!« ""V« '^^^"^'=^« 
 iH'ver to abandon until the gimi.ms Sect f T, I f f7 tfV*'^'^^^ ourselveH 
 mnst fight ; I repeat it, X ue ust iht . A^ "*it '^'"" ^** obtained, we 
 ..f Hosts is all that is left us ! ^ ''I*^'*^"^ *° "^"'" ^"^^ to the C!o,l 
 
 . 3. Ontheknowledgeof the spherical figure of the e-irth tl.« ,.,.^ t • • 
 in a great measure depend and all tl ■ e v< ,vaff«« , f .w ' *• ''Z "'"^'gation 
 
 made in later years, were uiutLitakon . "^^ discovery, which have been 
 
 fact, Had niLikind';^.:;;;^ tt^,:^,;;:f«;/i-^ *^'- 
 
 navigation of the gh.be would never hv« hi' .' .^^^^ this discovery, the circum- 
 ^vorld .ould lmve^xMuaine^l"t .In a d unJxS^^ "^ the 
 
 would have been maintained »>etwe^rti;e vSs ^,7s ^f S'^^^ 
 and, consequently, the blessings of r^ivine XvtLion ^^^ Jnnnan race^- 
 
 communicated to the greater part of ti.e Gentile woiid "''''" ^'"^'" '^'^^^ 
 
 vut-"^>^c,^: 'S'^^;^''^ ^Zr^' -^pleasures, that the 
 an agreeable companion in TsSue nHieets wi?h''^ ^ ^ Picture, and find 
 a description, and^ often a grS er^ath^ict n in^^ '"""'^^ refreshment in 
 meadows, than another doesTthe sa le pZssi?n Tr''"^'''l-^^ ^^^^^^ ''''^ 
 kind of property in evervthin^ he sPP^^n^^ T lu' ^^ S''''^'''' ^™' "^^^eed, a 
 <.f nature\d\niniter to i " fea^irl ' so that h? InXr^' ""f ^^ivated pai'ts 
 were, in another light, and <i: ^w^rs in it a mul?,>.^ f'^T ^^'^ ^"^•'^^' ^^ ^^ 
 themselves from the generality of mankind. ™"^^'^"^*^^ ''^ ^^»™«. ".at conceal 
 
 5. To satisfy the-t-caminer, the entirely uncultured vouth lm«, in f J. « . , 
 to set himself resolutely to learn to read. Then he must b Jl] I ^ ^''''^ ^'^"''^ 
 extent of transcribing a few lines from book W th thi !. .^ ^^ ^'}^^. *'^ ^he 
 elementary rules of arithmetic he must\S«^ w i ^^e mysteries of the four 
 ance. To nien who can alreSy re^raL ?rS %^^T'l?^ !?tnnate acquaint- 
 • able obstacle. HavingLrnl^^^^^ 
 
 i, ui "^VV""/ V-*" «ireauy reaa ana write, the latter . 
 
 nsuperable obstacle Having furnished a moderately food -nanpr.''"-;^: '"' 
 not very exacting sub ects, he in a few davs rpr^pi^tuir- * x, P, P**^ ^" these 
 and leaves the school in triumph. ^ ^' ^'' fourth-class certificate, 
 
 6. In a country where there is no law, there is lib securitv for l.v^ 
 
 no abundance of the necessaries or the uxuries of life no • '''* P^'?P«rty; 
 
 for the inhabitants ; and the only eaualitv tW .L '. '^'^'I^'" mibsistence 
 society is an equality of rni^^S^ S^^^'^^^^^^J)^^ of 
 
 dangers incident to a state of anarchy. «MJObea to the risks and 
 
 7. Burchill, the South African traveller, was one dav frnv«li;» u-u 
 
 along the bank of a river which was densely frhigedwitr ^ T*'''"^ 
 
 TH'-hi^" -urliaii i-i -1 t, 1 - - ^^"''^'^y iiiiij^eu. wicn tall ofmssieB n-,,A i. 
 
 iu„ho., ^hen x.i« dogs began barking loudly at some concealed object I^ a 
 
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 ^^J 
 
 
 IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
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 riiuiugidpillC 
 
 Sciences 
 Corporation 
 
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 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) 872-4503 
 
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182 
 
 PRECIS-WRITING. 
 
 minute or ^..o, roused by the tumult, a lion and lioness brc.c^ out into the 
 opening. The latter immediately took to flight among the reeds, but the lion, 
 an enormous animal, with a full black mane, advanced a step or two, and then 
 stood still, gazing calmly, as if to say, '* Who are you that have dared to intrude 
 on my royal privacy?" Some of the party were unarmed, and to them the lion's 
 glowing eye was a thing of fear ; others, who had weapons, put their fingers on 
 the triggers ready to fire ; and Burchill himself held his pistols in the same 
 manner. At this moment the dogs rushed forward and barked around him. 
 Two of them ventured too rear the destroyer, who slightly lifted his paw, and, 
 lo ! they were dead. So quickly was it done, that Burchill had only time to 
 mark the result. The men immediately fired, a ball entered the lion's side ; but 
 though the blood began to flow, he still preserved his attitude of half scornful, 
 half curious immobility. They then expected that he would certainly spring, 
 and Burchill raised his pistols, hut to their surprise, and not a little to their 
 relief, he wheeled himself round, and proudly marched away. 
 
 EXERCISE S— RE VIE W. 
 
 1. Public attention has recently been drawn to the possibilities which are now 
 making themselves manifest of extinguishing fire by the application of chemicals 
 whose properties are antagonistic to combustion. 
 
 2. A parent may control the actions of his children so long as they remain 
 under his roof, and may insist upon his regulations being observed and his 
 commands obeyed. 
 
 3. In the biographies of the saints of the early- Celtic Church it is frequently 
 recorded that towards the close of their lives they left their monasteries and 
 sought the seclusion of some lonely island or mountain solitude, in order to 
 pass the evening of their days in undisturbed devotion and freedom from 
 worldly cares. 
 
 4. What we got from our worthy director from Grimsby is quite in keeping 
 with some thoughts that have been travelling through my head, and to which I 
 gave some expression in one of my articles in the Canadian Horticulturist. 
 
 5. According to some of the novels cf the present day, it is only the lovely 
 nymphs of seventeen or eighteen, and the fascinating swains of three or four 
 and twenty, who have any business to think of matrimony. The poor plain 
 ones, or those who have passed the meridian of life, are Iqoked upon as com- 
 pletely shelved ; the hymeneal torch is not to be lit for them, and the little god 
 of love passes them over with contempt. ^ 
 
 '3. The migration of birds is a subject that has excited the attention of natur- 
 alists of all nations from very early times, and many theories have been advanced 
 to account for the mysterious periodical movements that take place among the 
 feathered tribes, although it can hardly be said there is one which fully explains 
 these movements. 
 
 7. The earth, covered by ll» first mantle of snow, reminds one that the col- 
 lecting season is virtually ended, and the lengthened evenings allured one to 
 the study fireside to go carefully over note-books and collections and to read 
 the recorded labours of fellow-Entomologists. 
 
 8. I was so unfortunate during our sojourn in those remote regions as to dis- 
 locate my ankle ; and in the absence of regular medical aid, Digby show^ed 
 himself a skilful amateur surgeon, and afterwards relinquished many hours of 
 sport with his friends, in order to sit by my sofa and help me to while away the 
 tedium of my idle days. 
 
PRECIS-WRITING. 
 
 183 
 
 9. As It IS not a vain and false, but an exalted and religious imagination, 
 which leads us to raise our thoughts from the orb which, amidst this universe of 
 worlds the Creator has given us to inhabit, and to send them with something of 
 the feeling which nature prompts, and teaches to be proper among children of 
 the sanie Eternal Parent, to the contemplation of Uie myriads of fellow-beings 
 .with which his goodness has peopled the infinite of space, so neither is it false 
 or vain to consider ourselves as interested or connected with our whole race 
 through all time ; allied to our ancestors ; allied to our posterity ; closely com- 
 pacted on all sides with others ; ourselves being but links in the great chain of 
 being, which oegins with the origin of our race, runs onward through its suc- 
 cessive generations, binding together the past, the present, and the future, and 
 terminating at last with the consummation of all things earthly, at the throne 
 of God. '' 
 
 10. I venture to prophesy there are those now living who will see this favored 
 Isind amongst the most powerful on earth ; able, sir, to take care of herself 
 without resorting to that policy which is always so dangerous, though sometimes 
 unavoidable, of calling in foreign aid. Yes, sir ; they will see her great in arts 
 and m arms ; hei golden harvests waving over fields of immeasurable extent • 
 her commerce penetrating the most distant seas, and her cannon silencing the 
 vain boasts of those who now proudly afi^ect to rule the waves. But, sirf you 
 must have «iew; you cannot get along without them. Those heavy forests of 
 valuable timber under which your lands are groaning must be cleared away. 
 Ihose vast riches which cover the face of your soil, as weU as those which Ue 
 hid in Its bosoni are to be developed and gathered only by the skill and enter- 
 prise of men. Your timber, sir, must be worked up into ships to transport the 
 productions of the soj. from which it has been cleared. Then you m- st have 
 commercial men and commercial capital to take off your productions, ^nd find 
 the best markets for them abroad. Your great want, sir, is the want of men • 
 and these you must have and will have speedily if you are wise. ' 
 ' IJ- p is not easy to over-estimate the advantages of under-draining, or to 
 apply to it the language of extravagance. Since first practised its nuTrch has 
 been victorious~a succession of triumphal conquests. It has drawn the line 
 of demarcation between the domain of the living and the dead in plant life 
 ihe battle-ground of occupancy between the principles of vegetative production 
 and vegetative destruction, it has given to the former. It has broken the iron 
 sway of the fitfulness of the seasons, and taken away its yoke. It has sun- 
 planted ^sickly delicacy in plant life by the robust vigor of a strong growth. 
 It has umocked the hidden chambers of the secreted forces of the soil, driven 
 them out from their hiding-places, and forced them to give of their hoarded 
 wealth to the husbandman. It has given abundant "seed to the sower" and 
 
 bread to the eater, " has filled the barns of the yeomen brimful, and their 
 pockets with yellow gold It has practically chained the frost-king to ice-rocks 
 ot the north for two whole weeks in autumn, and broken his fetters a fortnight 
 car lerin spring. It has smitten the grasses of the marsh (comparatively 
 useless) which love a watery domain, with a hopeless decay, and covered the 
 abode of the frog and the lizard with rich, ripe shocks of Ai^ell-eared corn It 
 has turned the joyless fen, where seedu of death hovered in the air, into the 
 happy abode of singing bird and laughing child ; and what it has done it wUl 
 continue to do, if only given a chance. 
 
 .i^^^'^'^'^ui"*?^*^*^^® necessity that a Levantine or Asiatic feels to ask more 
 than double the actual value of his goods, and allows himself afterwards to be 
 beaten down to something less than half what he originally asked, is a cause of 
 
 
m 
 
 184 
 
 PRlSc^g-WRITINO. 
 
 bewilderment to the ftrdinary Briton, and a continual sore rankling in the bosom 
 oi the nnwary tourist who has fallen a victim. It is not only the imlicensed 
 hawker wlio takes his wares on board ships as they put in to the various ports 
 along their route, and whose prices are merely a speculation as to how great an 
 ext( lb his customer may be imposed upon ; but in the regular shops and 
 luarkets, this system of haggling is perfectly recognized; and a trader who 
 fixed a fair price on his goods, and kept to the one price, would run considerable 
 risk of losing his entire custom, as the satisfaction of having beaten down a 
 tradesman, and forced him to strike off sometliing from his original price, gives 
 an appreciable flavor to the transaction. 
 
 CHAPTEK II. 
 
 PR^OIS-WRITING. 
 
 Precis- Writing, Avhilc affording, in couunon with ooher departments of the 
 subject of composition, excellent facilities for mental development, possesses, 
 on account of its utility, a very pressing claim on the attention of the student 
 ]ii'e})aring to enter upon the duties of a business life. No one is properly fitted 
 for a clerkship who is not prepared to summarize a letter, or a series of letters, 
 when required to do 6o by his superior. 
 
 By a Preciii* is meant a short form of composition, giving in clear and con- 
 cise language, all this is really essential in business correspondence, or other 
 writing. 
 
 The object of condensing letters, &c., is that the head of -. department, 
 manager of a business, or other person in authority, may comprehend all that is 
 important in them without reading the originals. 
 
 It often occurs that the pei-son to whom a letter is addressed, has not at his disposal the time which 
 would he required to read it. In order to acquaint himself with the particulars of the letter in the 
 shortest time possible, he will, instead of reading the original, read a precis or sunnnary of it, pre- 
 pared by his clerk. 
 
 ' ' The merit of a precis consists in its brevity, completeness, clearness, and 
 judicious arrangement." 
 
 EXAMPLE 
 
 Sir James MacKiutosJi to Macvey Xapier. 
 
 MoRDOCKS, November 13, 1822. 
 My Dear Sir, — 
 
 It would be difficult for me to convey to you an adequate conception of 
 the magnitude of my historical arrears, and of the sad extent to which inevita- 
 ble engagements, ill health, and domestic fvfflictions have of late encroached on 
 the time which ought to hav* been employed in attempting to discharge them. 
 My circumstances in that respect are at present such that nothing could liave 
 made me think of the experiment which I mentioned in my last, but a feeling 
 that I ought sooner to have told you my difficulties. I should be very much 
 obliged to you by your saying to Thomson that there is nothing of which I 
 
 * Pronounced prase. 
 
PRECIS-WRITING. 
 
 185 
 
 the 
 
 am at present so desirous as authentic information about Glencoe, and that I 
 
 vnhnl ;";''- w■'''"l^'"«A''*'^i^•^^!^^P'^""^^^•"«« published in tl»e thirteenth 
 ri? "^^ -^'^T'^^ ^,ta<^« Tnals " be an accurate and complete account of 
 on thfRrvolution? ' Parliament concerning that solihvry but deep blot 
 
 Very truly yours, 
 
 J. MACKINTOSH. 
 
 The student on reading the foregoing letter will observe that the followin.' 
 indicate the important points : — "iiu»Tiiig, 
 
 1. Historical arrears, and difficulty in discharging them. 
 
 2. The request made. 
 
 Therefore, the jjrecis may take the following form :— 
 
 PRECIS. 
 
 Mr. Macvey Napier is informed of the magnitude of Sir James MacKintosh's 
 lusoncal arrears, and of his difficult^- owing to unfavorable circums^nce« 
 m discharging hem Sir James MacKiutosh, anxious for authentic infSTation 
 n-r,nests him to ask Thomson if the thirteenth volume of "Howell" sS 
 l;mis gives a full and accurate report of the proceedings of the Scotch P^r^ 
 liament concerning Glencoe. wuvi* x oi 
 
 ii 
 
 and 
 
 EXERCISE I. 
 
 Samitel V.^iLMOT, Esq., North Esk, October 15, 1887. 
 
 Newcastle, Ontario. 
 Sir, — 
 
 Your letter of the 1st in st. came duly to hand, and contents noted. I will 
 f.>llow the instructions given therein. The freshet has been very high, but done 
 no damage, or at least nothing to speak of. The water was running over the 
 lower dam; and I had to run a net along the top in order to prevent the fish 
 from going over. I think some have got out. I had to remain at the racks all 
 luglit m order to keep them clear of leaves, otherwise there would have been a 
 clean .sweep : this being tne hrst rise of water this season brought a lame 
 amount of leaves and other rubbish. All danger is now past for this seasofi 
 and I hope we will not have such a sudden rise of water again. The fishermen 
 will bo down to-day with one hundred more fish, this will Conclude this seasS 
 hshing ; I think we now have a sufhcient number to fill the house. 
 
 I remain, yours truly, 
 
 / N T ^- 4- .1 -I •...,, ISAAC SHEASGREEN. 
 
 (a) Indicate the principal points m the letter. 
 
 (b) Write a precis of it. 
 
 (--I 
 
 'kl 
 
186 
 
 PRECIS-WRITING. 
 
 EXERCISE II. 
 
 Berwick, September 27, 1877. 
 Sir,— 
 
 An absence froui college on account of sickness, has prevented my answer- 
 mg your obliging communication requesting me to write a paper on Political 
 
 Economy, for publication in the columns of that excellent periodical, the 
 
 lieview. Although I am far from being disengaged at the present time, I thiiik 
 I may safely promise to have the article referred to ready for the December 
 number. I may sav, however, before commencing it, that many of my views 
 on that important subject differ widely from those expressed by some of the 
 contributors to your paper during the last three years ; but I presume that its 
 readers, ' eing of the more intelligent sort, will not suppose the views that I 
 may see fit to set forth will necessarily be indorsed by you. At any rate, the 
 more I consider the subject, the more I am convinced that many of ohe popular 
 notions of the day regarding it are based on a false foundation. 
 
 Yours truly, 
 
 C- I^-. , A. B. 
 
 Stoke. 
 
 (a) Indicate the main points in this letter, 
 
 (6) Write a precis of it. 
 
 (c) In what do the merits of a precis consist ? 
 
 EXERCISE III. 
 
 ^ ^ , Brandon, July 14, 1887. • 
 
 Dear Sir, — 
 
 1 beg leave to acknowledge the receipt of your letter, dated July 1st inst., 
 asking for information in regard to your claim. On account of circumstances, 
 wiiich nothmg could have enabled me either to anticipate or prevent, I was com- 
 pelled to leave home on the 30th ult. Since that tune I have done no office 
 work, and therefore I have to inform ydfc that the papers have not been sub- 
 mitted for approval ; but that the matter will be attended to without delay. As 
 soon as a satisfactory arrangement is made, I shall write you. 
 
 •Yours truly, 
 E. E. MuRCH, Esq., B. C. DENli^LM. 
 
 Prmce Albert. *■ 
 
 (a) Write a precis of the foregoing letter. 
 
 EXAMPLE. 
 
 Underwood, July 14, 1887. 
 Dear Sir, — 
 
 The other day I had a letter from my brother, informing me that you wish 
 to sell your farm, and giving me a somewhat detailed description of it. From 
 what he said I am of opinion that it would make a good stock farm, and that is 
 just what would suit me, as I purpose to devote my attention chieflj to the 
 rearing of horses and cattle. It being my intention to purchase shortly, y u 
 will do me a favor by letting me hear from you at once. Please give particulars 
 
PBicIS-WRITING. 
 
 187 
 
 in regnrd to price, terms of sale, &c. State also which day next week it will 
 best suit your convenience for me to go over, as I must see the firm niVre 
 before doing anything further in regard to the matter. ^ 
 
 Yours respectfully, 
 
 J. J. HOWE. 
 
 J. B. Pratt, Esq., 
 
 B 
 
 ervie, 
 
 Ont. 
 
 Dear Sir,- ^=^^'=' ^"1^ !«' 18«^- 
 
 insL^nT1r,H^J;°"°^.w ^^'^"'^^l^dge the receipt of your favor, dHtod the 14th 
 instant, intimating that you have some notion of purchasing the farm whicli 1 
 offer for sale, and askmg particulars in regard to price, ternTs, &c. In reolv I 
 beg leave to state that n^ cash price is Eight Thousand Dollui; ; but thatla.n 
 v^iUing to accept Four Thousand Dollars cash, and a mortgage, payable in five 
 years bearmg mterest at the rate of 6% per annum, for the balance The far u 
 
 ^i.W«Tr\r ^"""'"f "* T^i''' '*^^"^ '^''''^^' ^^^^"g ^" necessary convenience" 
 such as stabling, pasture fields water supply, Ac. I shall be at liberty on the 
 afternoon of Friday, the 22nd inst., and it will afford me much pleasure o 
 assist you m examining whatever may be of interest to you. 
 
 "^ours respectfully, 
 J. J. Howe, Esq., j ^ pi^^tt 
 
 Underwood, Ont. 
 Dear Sir,- Underwood, July 18, 1887. 
 
 Permit me to acknowledge the receipt of your favor of the Ifitli mst. , givin- 
 price, &c , of the farm which you offer for sale. While thanking you for f indly 
 oflenng to assist me in examining the farm, I beg leave to°tate that such 
 examination would be useless, unless you can modify your terms of sale. If I 
 should decide to buy from you I could pay down Three Thousand Dollars, and 
 the balance in three years. Please let me know at once if this would be satis- 
 factory- to you, and oblige, 
 
 Yours, &c., 
 J. B. Pratt Esq., j j jjqwe. 
 
 Bervie, Ont. 
 
 Dear Sir,- Bervie, July 20, 1887. 
 
 In reply to your favor of the 18th inst., asking information in regard to a 
 modification of terms of sale, I have much pleasure in stating that what you 
 
 CrVZr Yu "^T '^'''^''i^'y ^« «i^' should you decide to purchase die 
 tarm. i shall, therefore, expect you on the afternoon of Friday, the 22nd inst. 
 
 Yours, tfcc, 
 J. J. Howe, Esq., j g praTT * 
 
 Underwood, Ont. 
 
 ma^'be^noted ^- ^'''''''^^P'''''^^^^^ S^^^^ ^^^^e, the following important points 
 
 No. 1. Asking for particulars relating to farm. 
 No. 2. Particulars given. 
 
lf<^ 
 
 FHK('IS-WRrriV« 
 
 N«j. ;i. Inquiry in luyard t<j a muilihwition of tonus. 
 N. .. 4. PropoHt'd terms satisfactory. 
 
 No. 1. 
 No. 2. 
 No. 3. 
 
 No. 4. 
 
 pr6cis.» 
 
 Mr. .T. .J. Howe, hearing that Mr. .J. B. Pratt had offered 
 his farm for wile, asked him hn- {Mirticulars as to price Ac. 
 Mr. Pratt stated that the price was $8,000, of which $4,000 
 was to bo cash, a mortgage, payable in 5 years, and bearing 
 interest at 6%, to be taken for balance. Mr. Howe, being 
 unable to accede to these terms, inquired if $3,000 paid 
 down, and the balance in three years, would be satisfactory, 
 should he decide to i)urchase. Mr. Pratt replied in the 
 attirmative. 
 
 EXERCISE IV, 
 Dominion Lands Office. 
 •"^"^ '— Prince Albert, N.W.T., 11th March, 1882. 
 
 As a majority of the settlers on the south branch of the River Saskatche- 
 wan, in the vicinity of the parish of St. Laurent, have taken up their lands pre- 
 vious to the survey with narrow frontages, similar to those river claims in other 
 parts of this district ; and in view of the difficulty likely to be experienced in 
 this ofHce in adjusting the })oundarie8 of these claims in accordance with the 
 section survey, I have, at the rutiuesfc of several settlers so situated, the honor 
 to reipiest information as to the possibility of re-surveying these sections into 
 river l.,ts on a similar plan to that adopted in Prince Albert settlement, none of 
 those claims having as yet been entered in this office. / 
 
 I have the honor to be, Sir, your obedient servant, 
 
 ^ ,, ,T^ • T . GEO. DUCK, Agent Dom. Lands, 
 
 surveyor (.eiieral Dominion Lands, 
 
 Department of the Interior, 
 ^"^'" Ottawa, 2l8t September, 1882. 
 
 I have the honor, by direction of the Minister of the Interior, to acknow- 
 letige the receipt of your letter of the 11th March last, stating that you had been 
 requested by several of the settlers in the vicinity of the parish of St, Laurent 
 to obtiiin infori..ation from the Department as to the possibility of there bein<r 
 a re-survey of their claims by the Government, and to inform you that it is not 
 the intention <jf the Government to cause any re-survey to be made. Of course 
 nny sub-division difTering from the regular survey chey may desire, they can' 
 procure for themselves when the lands come into their possession. You will 
 tilease, therefoi-e, communicate this decision to the persons interested. 
 I have the honor to be. Sir, your obedient servant, 
 
 A. M. BURGESS. Secretary. 
 (iEO. DvcK, Esq., Agent Dominion Lands, Prince Albert, N.W.T. 
 
 (a) Write a precis of the foregoing letters. 
 
 (/>) AVhat is the use of a precis of official correspondence ? 
 
 timllf wHHmk the ilroci?'' ^^^ '"'"'""''" °' anything important that may have been omitted at the 
 
 i 
 
7 
 
 CHAPTEE III. 
 
 INDEXING. 
 
 Indexing, in a general sense, includes the various niefln« ,.bo^ u» 
 and others to facilitate reference to documents or entri^ ^ accountantn 
 
 This subject may conveniently be treated under the following headings : 
 
 (1) Indexing correspondence in tabular form. 
 
 (2) Indexing letters received. 
 
 (3) Indexing letters sent. 
 
 (4) Indexing bills, invoices, Ac. 
 
 INDEXING OORRESPONDENOB IN TABULAR FORM. 
 
 ord^erofa'iel^^oitS, ""J.^^Ttl.:!^' £^:^Z!T''^^^^^^ '"i T-"^'^- 
 pendents, as well as a brief 'in'dicat1on':"ti^train^^^^ — 
 
 she'w'n Ste^n^il^lfhTeltV^^^^ - i"«t sufficient 
 
 case, the Index should gve the Tubsrnce o^ fh« '' ""^ ''T''"^ ' ^" «"^'' 
 densed form. ^ substance of the correspondence in a con- 
 
 fac^rn°taten^a1et\t ^^^^^^^^^^^^^ ^--^ ^T^^^^^ ^^^ '^^ 
 
 or index of the same. ^""^ ^^^'^''^ attempting either a precis 
 
 EXAMPLE. 
 
 J^n(^e.v for Exercise IV. on page 188. 
 
 No. Date, 
 
 1882 
 1 March 11 
 
 From and To Whom. 
 
 From Mr. Oeo. Duck to Mr. 
 A. M. Buryesa. 
 
 SUBJROT. 
 
 Sept. n 
 
 Mr. A. M. Burgess to Mr 
 Oeo. Duck. 
 
 Requesting information in reqard to 
 re-aurveymg river claims on the south 
 ^^braiich of the Saskatchewan. 
 
 Stating that a re-svrvey is not to he 
 'iiuide. 
 
 \ 
 
100 INUIiXlNO. 
 
 EXERCISE I. > 
 
 K If. Hull to A. H. Gibaort. 
 
 ^ „ Meadsville, Aug. 11, 1075. 
 
 Dear Sir, — 
 
 As I stntecl to you immotlmtely after your eloction that thoro was no oftico 
 which I desired oitlier for inyself or any friend, I have had no occasion to write 
 to you in regard to such nrnttors. There is a matter now, however, that con- 
 cerns you personally, and in which I feel that I discern your intoroHt so })lainly 
 that I take the liberty to write to you with reference to it. I do this with less 
 hesitation, because you did luo the honor, after your election, to confide to me 
 pretty fully your views. In the present disturbed state of the public mind 
 ronctsrning the recent gold combination, is it not the quickest and surest way 
 to set at rest the great excitement and uneasiness which prevail, for you to 
 luako a brief denial over your own signature of all foreknowbdge of that com- 
 bination in order to relieve yourself entirely from all responsibility for the acts 
 of others/ Of course, those who know you personally do not require sych a 
 disclaimer ; but the great public, whoso minds are liable to be warped by the 
 dctermuied and persistent ettbrts to injure you, will be, it seems to me, at onctk 
 sjitisfied and quieted by such a statement. 
 
 Sincerely yours, 
 
 A. R. Gibson. ' E. H. HALL. 
 
 A. E. Gibson to E. H. Hall. 
 
 Hillside, Aug. 29, 1875. 
 Dear Sir,— 
 
 Your favor of the 11th inst. is received. I have never thought of contra- 
 dicting statements or insinuations made against me by irresponsible parties, such 
 as those alluded to in your letter ; but as you have written to me on the subject 
 in so kind a spirit, I will say that I had no more to do with the late gold excite- 
 ment than yourself, or any other innocent party, except that I ordered the 
 sale of gold to break the ring engaged, as I thought, in a most disreputable 
 transaction. If the speculators had been successful, you would never have 
 heard of any one connected with the administration as being connected with 
 the transaction. 
 
 Yours truly, 
 
 E. H. Hall, Esq. A. R. GIBSON. 
 
 (a) Make an index of the letters given above. 
 (6) What is the object of indexing letters. 
 
 I 
 
INDEXINO. 
 EXAMPLE. 
 
 Index for Example on Page 180. 
 
 191 
 
 No. 
 
 Datk. 
 
 18S7 
 July 14 
 
 From and To Whom. 
 
 Juhj If) 
 
 Mr. J. ,r. Howe to Mr. J. 
 n. Pratt. 
 
 SUBJBLT. 
 
 Mr. Pratt to Mr. Ifoive. 
 
 Anking for particulars in regard to 
 farm offered /or mle. 
 
 Slating that price ia $8000. Canh, 
 94OUO; a mortgage payable of 5 years, 
 bearing int. at 0% /or balance. 
 
 Jtdy IS Mr. I/owe to Mr. Pratt. 
 
 July 20 
 
 Mr. Pratt to Mr. Howe. 
 
 Asking whether 9S000 paid down, and 
 balance in 3 years would be satis- 
 /actory. 
 
 In/or ining him that it would. 
 
 INDEXING LETTERS RECEIVED. 
 There are various methods of arranging letters which aro received mpl, 
 haying its own peculiar advantages and disadvantages. It L dfSt to sav 
 which IS the best for the reason that the requirements of one oSmi^ht E 
 fully met by a system of indexing which would prove altogetC uTsSle fir 
 another ofhce. Although this is the case, there^is no dXrence rrt^^^^^ 
 
 tointrhrttti;i'i;Sbr'' ''--' -'-' ^^^^^^"^- ^— ^ -y^Tfe^; 
 
 «Jh1^''''1'"^.''" ,^IP^''".^*'^^^*^^P<=^^' the principal things to be considered 
 are the extent and character of the corresponience. and the cost of Z S, 
 mry apparatus, such as tiling cabinets, binding cases, &c. 
 
 We shall endeavor to describe a method that does comparatively weU for » 
 business requu^ing only a limited correspondence. P»™uvexy well tor a 
 
 Suppose that the office is provided with a case having about forty boxes or 
 pigeon-holes suitable for holding letters and other documeZ S prenare it 
 for use it IS necessary to label twenty-six* of these boxes with the ietterX ?he 
 alphabet respectively, and that in order, the first being marked A trsecond 
 B &c. Six pieces of ordinary card-board marked A, E, I, O, U, and Y resnec 
 tively and arranged m the order in which the vo^ek are here g"ven' wiK 
 placed in each box. When a letter from John Smith, for examplfTanrwered 
 {if an answer 18 required), it is placed in the box labelled S and immedTatdv 
 above the card having I at its outside extremity which pro S^fficLnt Iv 
 
 s%W?n%rLlabefw %"'".- -VT-^^V'^" fro^^^lr JoTnsoJ 
 IS piacea m tne box labelled J, and just above the card which has O on if 
 
 F rom these examples the student wilj, no doubt, observe that th e letter of 
 Th;e?a1srwm b"f l&ed:"' '^ "^'"^ '°' '"''"^ ^'^''^^ ^^ "^ ^^ -«^«'^. ^i"». invoices, receipts, ^o'. 
 
192 
 
 INUKXINU. 
 
 tlu) iilpliiiluit tliMtiiij^niHlut»j( i\ iMirtiruliir l)'>x, \h tho initiiil lottor of tlio suMmnio 
 of uvory corrtw|»<tiulont wh«mu lottid'H iiro jiIiuhmI in it, \l^^ will nlso initicu timt 
 tho Vdwul iiiiirkiniir tlio curd iminoiliutoly bolow » imrticulur luttor ugruoH wkh 
 thiit of tho fifHt syllftlilo of tho Munmiuo of thu ctHTOMpomU'iit. 
 
 Tho <hito on which u lottor \n rocoivod Hhoulil l>o Htjuupod or writton on if hh 
 Hooii HK it coiiu>M t>o hand. Whoii tluH in thtno it in pluoml in a box htlii-IU'il 
 " LottorH," whoro it ronminH until it ih iinsworo*!. 
 
 Tho yix^o and nuinhor of tho lii'ttcr Hook cniitiviniiiK tho imswor to a lottor, 
 an woll as tho dato «!f unsworing it, should l)o plarod on it nour tho top. 
 
 Tho lottors roceivod from tho mwno porson hhuulil ho unangcjl in tho oi-dor of 
 thoiv datos. 
 
 Whon a conHidorahlo mtnihor of letters is roceivod fnnn a person or firn», a 
 Noparato 1)«)X shouhl ho UHod for thoni. 
 
 At tho end of each voar or half-year, as nocosHitv may rocjuiro, tho IcttorH will 
 ho taken out of tho l)oxos, and tied up in hundles or put into ch»He«l hindiuj^ 
 eases for tho purpose Thov should 1)0 alphahetieally arriuigod as hefore, and 
 tho packages should ho lahelled so as to shew tho (tpening and ch)Hing dates of 
 tlio period during which they were roceivod. 
 
 INDEXING LETTERS SENT. 
 
 When a person writes a business lottor of any importance, ho should, bi^foro 
 sending it away, take an iminossittn of it in his Lottor Hook, which being paged, 
 may have an index like that of a ledger. 
 
 Letter Books should bo numbered 1, 2, 3, t\:c.. and as they become fdled, tho 
 opening and chising datos of tho period for which each was used should be 
 written on tho back of it. 
 
 When ft letter retiuires an answer, it will bo found convenient to give the 
 correspondent tho page and number of tho Letter Book conUiining tho lopy, ho 
 that he may refer to it iu his reply. 
 
 INDEXING BILLS INVOICES, Sco. 
 
 Bills, Invoices, ifcc, as soon as examined, (if found correct,) are placed into 
 labelled boxes or drawers, being arranged in alphabetiavl order. At tho end of 
 each month they are taken out, folded neatly, and enclosed in wrapi)ers. marked 
 as ind'cated below : — 
 
 s 
 
 i 
 
 
 g 
 
 
 ^ S 4^ 
 
 * The wrapper. 
 
. . 
 
 
 HKVIKW. 
 
 103 1 
 
 
 ^ 
 
 
 "V ~ 
 
 ■ 
 
 ^ 1 
 
 1^2 
 
 • J' 
 
 \ 
 
 
 -q ^ 
 
 1 
 
 V 
 
 
 
 
 
 \ 
 
 1 
 
 
 
 
 
 
 e 
 
 
 
 " n 
 
 , 
 
 3 
 
 »■ *' 
 
 
 
 i 
 
 i 
 
 
 u'i 
 
 
 1 
 
 
 s3* 
 
 «5 "--^ 
 
 1 
 
 t 
 
 
 Af. fix. . 
 
 >...! ..* i.1 
 
 
 
 9 
 
 «I« m„l3 aX'it''"' " " "'^ °""™»-"' '^ ««' P-I-Iy con. 
 
 CHAPTEE IV.-RBviEw. 
 
 EXERCI8B] I. 
 GOVBRNMKNT HoUSE, 
 
 Sir,- Battlkfokd, N.W.T., 13th Fob., 1878 
 
 the control of the Dominion vJS^-noiTZd ^ 
 
 forward it to His Excellency the G "verilorZLr;!": Co^^^ '^'^ ^'^"^"^'^^^ *" 
 
 I hope you will have the goodness, at an earlv div fn il„ •. v . 
 Excellency in Council. ^ "'^"^» '" % it before Hik 
 
 14 
 
 
 J The wrapper. 
 
 ^•^ 
 
194 
 
 REVIEW. 
 
 Should it be tlie intention of the Government to appoint any additional mem- 
 bers to the Council of the North-Weat Territories, the prayer of the petitioners, 
 that such should be selected from the old residents of the ccnntry, is well 
 worthy of consideration. 
 
 : It is important that the land policy of the Government towards old settlers 
 aind others living for many years in the Territories should be declared. It 
 appear.) to me that they have a claini to some more speedy means of acquiring 
 a title for settlement purposes than the homestead provisions of the Dominion 
 Livnds Act. 
 
 To prevent disputes between neighbors, it is highly desirable that the survey 
 of lands settled upon along the prir cipal rivers should be prosecuted with all 
 convenient sj)eed. 
 
 With i-espect to the prayer for a-isis;;ance in procuring seeds and implements 
 to commence farming opeiations, it is similar to the request made to me by 
 the half-breeds of Bow Rivcx' during biie Blackfeet Treaty negotiations, and 
 which I forwarded to you and commejided to the favorable consideration of the 
 Government. 
 
 I have the honor to be, Sir, your obedient servant, 
 
 DAVID LAIRD, 
 
 Lieutenant-Governor of the North- West Territorks. 
 
 Hon. the Minister of the Interior, Ottawa. 
 
 ' Department of the Interi^ , 
 
 Sir,— , Ottawa, 18th March, 1878. 
 
 I have the honor to acknowledge the receipt of your despatch, No. 47, of the 
 /•Sth ulthno, covering a petition addressed to you by certain half-breeds of tl.j 
 parish of St. Laurent, relating to several matters affecting the interest of the 
 half-breeds in the North-West. 
 
 2. You are requested to inform the petitioners that I shall have much pleasure 
 in submitting their petition for the consideration of His Excellency the Governor* 
 General in Council 
 
 3. Ii: the i-ieantime you may intimate to the petitioners that should it be 
 thought desirable to appoint additional members to the Council of the North- 
 West, I shall be prepared to recommend to His Excellency's consideration their 
 application that such members should be selected xrom the old residents in the 
 Territories, and that, if 'possible, one of them should be of French Canadian origin 
 
 4. The propriety of passing an Act to secur6 for tho half-breeds some more 
 s})eedy means of acquiring a title for settlement puz-poses than under the pro- 
 visions of the present Homestead and Dominion Lands Act has for some time 
 past engaged my attention. 
 
 5. As regards the application of the petitioners for an early survey of the 
 settled lands along the principal rivers, I have to request you to inform the 
 petitioners that fhe surveysi of such hnds has already been carried out to some 
 extent, and will be prosecuted as rapidly as the funds at the disposal of the 
 Department will permit. 
 
 6. The application of the petitioners to be aided by the Government with seed 
 and Pirricultural implements in their farming operations, I confess I am not 
 disposed to view favorably. I don't see upon what grounds the half-breeds can 
 claim to be tr'iated differently from tho white settlers in the Territories. 
 
 \% 
 
 I 
 
; 
 
 RICVIEVV. 
 
 195 
 
 1\ -^ ^i^^i-y^rceda who hnve, in some respects, the advanta<'e over new 
 settlers in the Territories, should be impressed with the necessity of settlincr 
 down m b-ed locahties, and directing their energies toward pastoral or a<'ricuf- 
 tural pursuits, m which case lands would no doubt be assigned to themni the 
 same way sis to white settlers. But beyond this they must not look to the 
 Oroveniment for any special assistance in their farming operations. 
 
 8 The petitioi.ers are in error in supposing that the Government has given 
 West '*'" ""^ unpleuients to any other class of white settlers in the North- 
 
 9. Money has been advanced in some cases to certain settlers on the distinct 
 understanding that it would be repaid to the Government by the parties to 
 whom It was advanced. I may add that the result of this experiment has not 
 been such as to induce the Government to repeat it. 
 
 I have the honor to be, Sir, your obedient servant, 
 
 DAVID MILLS, 
 
 ^"^w "'^m the Lieut.-Governor of the NorthO Minister of the Interior. 
 
 West Territories, Battleford, N.W.T. / 
 
 (a) Note the important points in the foregoing. 
 
 (6) Write a precis of it. 
 
 (c) Index it. 
 
 EXSRCISE II. 
 
 J. W. Kaine to Jo/nies Bnrnahy. 
 
 ^^»— Geesham, Jan. 6, 1867. 
 
 .mI? ?''"^-^* ^i^T? *"" ^'"^'^^'^. ^" y,^""* P^P^^ °f ^^^^ 27th of November a com- 
 namication, m which I was gratuitously and unjustly assailed by Dr. Belligerent 
 who, in tne very piece declared that he was not responsible under the faws of 
 ^^^ri ^'r?/ """^y. •/ ^^'^f. "/ newspapers loere more accountable for what ihey 
 published hm the xonters of their articles. In deference to the prevailing senti 
 ment of the community against further strife, and in hope that you also would 
 forbear additional wrong I let this pass, and published an explanation and 
 
 tfJZ\v\ ""a'"^ ^ ^T^^ '^" ^^''^ ^' ^-^^'^ inferences alleged against me Y u 
 also published in a subsequent communication, on the 1st of January, from the 
 same irresponsible source, a reiteration of the offensive and insulting imputa- 
 tions previously made against me, with additional remarks more offensive than 
 any a ready published, and this in the teeth of my published statement! You 
 have thug made yourself i-esponsible for the articles, and have left me no other 
 alternative than to meet the responsibili' y you have assumed. I am under the 
 necessity of requesting that you make a suitable amende to me for the iniurv 
 you have done me. *"j"ij' 
 
 Your obedient servant, 
 James Burnaby, Esq. j ^y. KAINE. 
 
 Sir, — 
 
 James Burrmby to J. W. Kaine. 
 
 EsKDALE, .Jan 
 
 7, 1867. 
 
 Your note of the 6th instant was handed to me by Mr. Wade, and has received 
 the earliest attention consistent with my engagements. ifC not appear. 
 
196 
 
 REVIEW. 
 
 from the tenor of your note, what atonement it is in my power to render you. 
 If it will consist in disclaiming any purpose on my part of wounding your feel- 
 ings, or of injuring your character, you will confer a favor by stating the terms 
 in which such a disclaimer would be agreeable, and I can scai'cely apprehend 
 the possibility of not being able to make it in accordance with your wishes. 
 
 Respectfully yours, 
 J. W. Kaine, Esq. JAMES BURNABY. 
 
 J. W. Kaine to James Burnaby. 
 
 Gresham, Jan. 8, 1867. 
 Sir, — 
 
 I take pleasure in expressing my gratification at your disposition to disclaim 
 any purpose of wounding my feelings or injuring my character by the pub- 
 lication of the communication alluded to in my note. You desire me to state 
 what atonement or disclaimer would be agreeable. I can but presume that your 
 reflection has shewn you that, in publishing the articles of Dr. Belligerent, in 
 view of his declared non-amenability, and of my being a private citizen, and of 
 the fact that I had not assailed him through your columns, you have inflicted, 
 in fact, a wound upon my feelings and an injury upon my character, and that 
 you have become unavoidably responsible for this wrong. Your candor will, 
 therefore, no doubt, induce you to perceive the wrong, and to express regret 
 for the consequences which have ensued from your acts. 
 
 Very respectfully, 
 
 James Burnaby, Esq. J. W. KAINE. 
 
 G. 
 
 James Burnaby to J. W. Kaine. 
 
 EsKDALE, Jan. 8, 1867. 
 Sir, — 
 
 Your note of to-day has been received. In permitting the appearance, in the 
 columns of the Statuiard, of the articles referred to, I certainly had no inten- 
 tion to injure or to oifend any one ; and I readily acknowledge my regret 
 that any wound was thereby occasioned to your feelings, or any injury to your 
 
 character. 
 
 Respectfully yoiu-s, 
 J. W. Kaine. JAMES BURNABY. 
 
 ( 
 
 J. W. Kaine to James Burnaby. 
 James Burnaby, Esq. ^ Gresham, Jan. 8, 1867. 
 
 Sir,— 
 It gives me pleasure to state that your note of to-day has been received, and 
 
 is satisfactory. 
 
 Very respectfully, 
 
 J. W. KAINK 
 
 (a) Note the important points of the correspondence given above. 
 
 (b) Write a precis of it. 
 
 (c) Make an index of it. * 
 
t 
 
 BEVIEW, 
 EXBROISB m. 
 
 197 
 
 GENTLEMEN,— SwiFT CuRRENT, 14th May, 1876. 
 
 ^^^n^^^^^^ 7Uer in conneetion with n.y 
 
 unclaimed, unoccupied, and but mitl^pZedVstS^^ ^^'^ ^^^ ^«'"S 
 
 five years ago, at which time I made an attemnV T^VT f^'^^f ""^ ^^ ^"« *^""t 
 
 ment, but failed to do so on account of a cS nldf 1 ^iS*^"^*^ ^^^^ *^''« ^^^P^rt- 
 
 he meantime 1 have made considerable ii^e^en^h^Ji^^' ^^ ^f^^"" ^^ 
 
 house and a frame barn. I have also clearpd 11..? « '"^ ®''^*'**^^ ** S^^'^^ log 
 
 a fairly good state of cultivation It L mv dtTirf ? "^^ ^T'' ''^'''^ '^ "«^' "° 
 
 that I have a claim that will be acknowledged hvH V''^'^* ^« y«" ^hink 
 
 stepswillbe.necea«.ryformetot:ke^^^^^^^^^ P/o, what 
 
 from you at once, for I wish to push the aftkir Li; ^ " r^^^^""^ le*me hear 
 
 claim than mine against tlie lot i^ forfeited for n^"'^/' ^ *^^ ^^'^^ ^^^ «ther 
 
 duties. ^ lorieitea tor non-performance of settlement 
 
 Amos & Cummings, 
 
 Barristers, &c., Saratoga. 
 
 Yours truly, 
 
 G. A. CHAMBERS. 
 
 Saratoga, 23rd May, 1876. 
 
 G. A. Chambers, Esq., 
 
 Swift Current. 
 Dear Sir,— 
 
 we are not in a position to give you Tsat Lfa^tor^^^ T'"? ^^'^ ^^^ ^" question, 
 communicate with the Commissioner of Cr^wn SfP^^ ' ^^ ^^ ^^^^^at once 
 nmtters stand. As soon as we are i posseTon A "'' *' **" ^'^^^ ^^^««y ^ow 
 write you. "" possession of the necessary facts we shall 
 
 Yours, &c., 
 AMOS & CUMMINGS. 
 
 Saratoga, 29th May, 1876. 
 
 G. A. Chambers, Esq., 
 
 Swift Current. 
 Dear Sir, — 
 
 In regard to your letter of the 16th insf vnr^fz..^ 4.- ., 
 >ccupation of Lot 107, Concession 24. CnSofr^'^ *>* T" ^'''^ ">*<> 
 ago and that you have since made WoXentron fhT'^^' ^^""f ^^^ y««^« 
 state that we have written to the CommfsSofer Z r ^'"^i "^^ ^^S leave to 
 received a reply, informing us that irAugusT 187^ £"''''" i^"^«' ^"^ ^^^^ 
 through D. C. Campbell to purchase the lot liVh fi ' ^^" '^f'^^ *» application 
 ments thereon, that it was unsuccessful inH Yl. ^'^ ""'^"^ ^^ making impiove- 
 claim of Mr. H. C. BurdeU, Sie orig^„^^^^ purchase/' V'^'''.''^^" ""^^««^^ -^ '^- 
 the fact that in stating your' case yof madeTo eSt ?nZ"'^Z?^^^''' '^^^ «!«'> 
 only occupant, or the oiily one having a cJm S """^ "'^* ^^^ ^^^^ th« 
 
 ments dm-ing the last five years, we <Sn com? f^rf Z^. ^^''"Pa^ion or iraprove- 
 the Department would not cons der yZ entitLtn^ ''*^^''' <?onclusion thaS thnt 
 of your present unauthorised occumncv of/hlf w^ «ny consideration on account 
 
 „ -- -„_ ....J, TT e xuiiiam, 
 
 Yours respectfully, 
 
 AMOS & CUMMINGS. 
 
198 
 
 REVIEW. 
 
 o' 
 
 
 .y^ 
 
 / 
 
 y 
 
 Swift Current, 5th June, 187«'>. 
 Gentlemen, — 
 
 Permit mo to acknowledg'e your favor of the 29th ult., in which you ex- 
 press the opinion that the Department would not consider me entitled to any 
 consideration m\ account of my occupancy of Lot No. 107, Concession 24, Cro- 
 marty. As I did not, in my former letter, give full particulars, I beg leave here 
 to state that J have been the only occupant dui'ing the last five years and that I 
 have made the only improvements worth mentioning on the lot. I may .say, 
 further (and I am prepared to prove all my statements), that Mr. Burdett, who 
 appears to be the original purchaser, left this country twelve years ago, and 
 that the only work he did or caused to be done on the lot, was the clearing of 
 something less than one acre. Now that you have this additional information, 
 please submit the matter again to the Commissioner, and oblige, 
 
 Yours truly, 
 
 Amos & Cumminos, G. A. CHAMBERS. 
 
 Barristers, &c., Saratoga. 
 
 Saratoga, 15th June, 187^5. 
 Dear Sir, — 
 
 We have to acknowledge your favor of the 5th inst. , giving further par- 
 ticulars in regard to the lot to which you lay claim, and asking us to submit 
 your case to the Commissioner. We did as you requested, and received a re- 
 ply informing us that you liad no right to occupy the lot, and that you are 
 not entitled to any consideration on account of doing so. We are further 
 informed that Mr. Duncan has a claim based on a Tax title ; but we are of 
 opinion that t will not present much difficulty if you can satisfy the Department 
 that the Tax purchaser made no effort to improve the property. Tax i>uv- 
 chasers should be called upon to occupy within a reasonable time, otherwise the 
 ^ improvement of the country might be retarded in the interest of speculators tt> 
 an unlimited extent. In our opinion, the best thing for you to do is to lay the 
 whole matter before the Minister. State the case very fully, but in doing so 
 submit nothing but that which you are prepared to substantiate. We remain, 
 
 Yours respectfully, 
 
 AMOS & CUMMINGS. 
 
 («) 
 (5) 
 
 Write a precis of the foregoing letters, and index them. 
 What is the use of a Letter Book ? Explain fully. 
 
 EXERCISE IV. 
 
 Highgate, January 1st, 187fi. 
 The Hon. the Attorney General, 
 
 Hornsey. 
 Siu, — 
 
 1 beg leave to inform you that the Municipal Council of the Township of 
 Blank passed, on the 16th ultimo, a By-Law appropriating the amount due to 
 the township from the Municipal Loan Fund. Please let me know what steps 
 must lie taken in order to have the By-La 'v carried into effect, and oblige. 
 
 Your obedient soi'vant, 
 
 AUGUSTUS SNODGRASS. 
 
REVIFVV 
 
 199 
 
 Sir,— " HoRNSEY, January 5, 1876. 
 
 I have the honor to acknowledge your favor of the lat inst., addressed to the 
 Attorney General, Upon a by-law being passed by your Municipal Council, 
 apportioning their Loan moneys, a copy should be at once forwarded to the 
 Provincial Treasurer, properly certified. This being done, it will, at as early a 
 date as possible, be submitted to the Lieutenant Governor for approval. If 
 there are any Separate Schools in the township, the provisions of the Act in 
 regard to them must be observed ; and in such case it might facilitate the 
 approval of the by-law, if with the copy you would send a memorandum signed 
 by the Separate School Trustees, stating that they are satisfied that the by-law 
 grants to them their just share as prescribed by the Act. The Treasury Depart- 
 ment will, when informing you that the by-law has been approved, send forms 
 of certificates, upon which the money will be paid. Such sums as may be 
 applicable in payment of debentures will be paid upon the debentures beina 
 forwarded to the Treasury Department. ° 
 
 Augustus Snodgrass, Esq., 
 
 Highgate. 
 
 Yours respectfully, 
 
 TRACY TUPMAN. 
 
 HiGKOATE, January 10, 1876. 
 
 The Hon. the Provincial Treasurer, 
 
 Camberwell. 
 Sir, — 
 
 Herewith I enclose a certified copy of By-law passed by the Municipal Council 
 of the Township of Blank, appropriating the amount owing to the township 
 from the Municipal Loan Fund. There are no.Separate Schools in the township 
 Some of the sections are building new school houses this year, and therefore 
 want the money as soon as the by-law is approved. Please forward the neces- 
 sary certificates, so that the sections needing the money immediately may avail 
 themselves of it. ,. , , . 
 
 1 am, your obedient servant, 
 
 AUGUSTUS SNODGRASS. 
 
 Camberwell, January 14, 1876. 
 
 Augustus Snodgrass, Esq., 
 Sir,— Highgate. 
 
 I have the honor to acknowledge the receipt of your letter of the 10th in,st 
 accompanied by a certified copy of By-law passed by the Municipal Council of 
 the Township of Blank. Permit me to inform you that the by-law will be 
 submitted for the approval of His Excellency as soon as possible. Some days, 
 however, must elapse as a large batch of by-laws was sent for approval yester- 
 day, and yours is the only one now on hand. On examining the by-law, I find 
 that you appropriated the sum of $10,369.97, the correct amount being $10. .524 
 arrived at as follows : — o ■, 
 
 Population allowance $7528 00 
 
 Railway allowance over indebtedness 2841 97 
 
 Thirteen months' interest accrued 154 03 
 
 , ,524 00 
 
 The diflference arises fror. n^:erest not having been calculated in the circular 
 first sent ; but this was correct d by one sent subsequently, which, in all proba- 
 bility, did not reach you. r 
 
 1 romaui, yours respect! uily, 
 
 SAMUEL PICKWICK. 
 
 ; 
 
200 
 
 REVIEW. 
 
 HiGHOATE, January 20, 1876. 
 The Hon. the Pkovinoial Treasurer, 
 
 Camberwell. 
 
 8lK, — 
 
 I beg leave to acknowledge your favor of the 14th instant. In it you state 
 that there is due to the Township of Blank $164.03 of accrued interest, which 
 was not mentioned in the circular sent by the Department. The corrected 
 circular was delayed somehow, and reached me only a few days ago, the appro- 
 priation having been then made. Will it be necessary for the Council to pass 
 another Iby-law to receive tlie larger amounts as per corrected circular of the 
 29th ult. '( An early reply will greatly oblige, 
 
 Your obedient servant, 
 
 AUGUSTUS SNODGRASS. 
 
 AuousTUS Snodorass, Esq., Camberwell, Jan. 26, 1876. ' 
 
 Highgate> 
 Sir, — 
 
 I have the honor to inform you that the by-law of the Township of Blank, 
 having been submitted to his Excellency the Lieutenant-Governor in Council, 
 has been approved. Enclosed please find blank certificates. In reply to your 
 letter of the 20th instant, I have to state that it will not be necessary to pass 
 another by-law, as the difference in the amounts can be treated as interest. 
 You will observe that the by-law does nob state to what purpose the money is to 
 be applied in the different school sections ; and consequently it will be necessary 
 for the certificates to specify the objects to which the varioi;s school trustees 
 intend to apply their shares of the allowance, which objects ast come within 
 the meaning of the Act as amended. The amendment of this session will enable 
 you to create a school fund with the money if you choose. I remain, 
 
 Yours respectfully, 
 
 SAMUEL PICKWICK. 
 
 HiGHGATE, February 8, 1876. 
 The Hon. the Provincial Treasurer, 
 
 Camberwell. 
 
 Sir, — 
 
 I have the honor to acknowledge your favor of the 25th ult., by which I am 
 informed that Certificates must specify the objects to which the trustees of 
 School Sections intend to apply their shares of the money received from the 
 Municipal Loan Funds. I am at a loss to know how to deal with Sections which 
 have built School Houses, and have already paid the contractor in part. In 
 such a case, shall I grant a Certificate for the full amount of their apportion- 
 ment, provided that amount is less than the cost of the building ; or, shall I 
 grant a Certificate for the unpaid balance only, although such balance should be 
 less than the apportionment ? I remain. 
 
 Your obedient servant, 
 
 AUGUSTUS SNODGRASS. 
 
 (a) Write a precis of the foregoing. 
 
 (b) Index them. 
 
 (c) Shew how to file away letters received. 
 
REVIEW. 
 
 201 
 
 BXBROISB V. 
 
 Camp, Great Okanaoan Lake, B.C., 
 
 m, TT HT „ 12th September, 1877. 
 
 THE Hon. the Minister of Marinr and Fisheries, 
 
 Ottawa. 
 Sir, — 
 
 I have the honour to acknowledge receipt of enclosures relating to the con- 
 struction of a fishing weir at a point on the Fraser River, some miles below New 
 Westminster. 
 
 I enclose copies of correspondence on this subject, to which I respectfully 
 refer you. ^ ^ 
 
 At a conference which I held with the principal fishery proprietors at New 
 Westminster, in the middle of June, no complaint of t! is structure, then in pro 
 gress, was made to me ; and I myself saw no objection to the construction of the 
 weir, provided it did not interfere with navigation, or otherwise violate the 
 general provisions of the Fishery Law. Similar weirs were for a time exclusively 
 and are even now, I believe, partially employed upon the Columbia River But 
 they were gradually abandoned, as inefficient, in favor of the drift-net than 
 which, indeed, they are far less destructive. ' 
 
 On the whole, I am of opinion that much causeless jealousy of this weir 
 Imilt by a man of small means, who probably could not afford the purchase of 
 nets, has been exhibited. On the other hand, if, as Mr. Cooper states, the exist- 
 ence of the weir is calculated to cause impediment to the navigation at some 
 future time, its continuance would of course become illegal. Indeed, the general 
 Fishery Law itself provides for the removal of the stakes at the end of the season 
 
 On my return to New Westminster I shall enquire particularly into all 
 matters connected with the subject in question and report to you afterwards 
 Meanwhile, I am happy to say that the enormous shoals of fish that have passed 
 up during the last two months, will at kast have removed whatever apprehensions 
 the Fishery proprietors may have entertained. 
 
 I have the honor to be. Sir, your most obedient servant, 
 
 ALEX. C. ANDERSON. 
 
 Inspector of Fisheriesy jB.6. 
 
 Kamloops, B.C., 7th July, 1877. 
 
 Messrs. Finlayson & Lane 
 
 and Henry Holbrook, Esq., 
 
 New Westminster, B.C. 
 Gentlemen, — 
 
 I received yesterday only your telegram of 28th ult., announcing that parties 
 (not named) were placing heavy pile traps in the river, obstructing navigation 
 and that you protest. Of course any such proceeding is illegal, and, on com- 
 plaint before a Magistrate, under the general and comprehensive terms of the 
 Fishery Act, would be interdicted. 
 
 Before leaving Victoria, 1 received an application from a Mr Ibbotson 
 concerning a fish-trap ; I enclose a copy of my answer, and you will see that I 
 guard specially against any interruption of the navigation, or violation of the 
 observances usual on the Lower Fraser with regard to the salmon fishery. 
 
 I have the honor, &c., &c.. 
 
 \- — o / 
 
 ALEX. C. ANDERSON. 
 
 Inspector of Fisheries, B.C. 
 
202 
 
 REVIEW. 
 
 P. S With reference to the general Bubject, I truHt that the gentleniun 
 engaged m the hshery (as suggeHted by me vhen in New Westminster) will nie»'t 
 and draw out some rules or by-laws for the conduct of the fishery, as their 
 experience may teach. These, if sent to me, I would forward ofHcially to (^>ttawa 
 for approval or confirmation. At the same time, I could recommend the appoint- 
 ment of a Warden or Overseer to watch that the rules were carried out. 
 
 A. C. A. 
 
 . ^ . ((^opy of Telegram. ) 
 
 A. O. Anderson, 
 
 Kamloops. 
 
 Parties are placing heavy pile-traps in the river, obstructing navigation. 
 Wo protest. " ° 
 
 FINLAYSON & LANE. 
 H. HOLBROOK. 
 
 A. C. Anderson. 
 
 New Westminster, B.C., 10th July, 187' 
 
 Dear Sir, — 
 
 Colonel Lane and myself telegraphed to you about the traps being erected 
 and placed in the river. *It catches both large and small, and we think the 
 erection is contrary to law ; but if such is not the case, we shall have to put them 
 up and allow no fish to pass up for the Indians. Several cargoes of stone are 
 being brought from Nanaimo to weight it— it is the heart trap. 
 
 We would like to hear your decision in the matter. There are seventy boats 
 fishing with nets, and we all want fair play and to start even. There is troul)le 
 for want of fishing regulations to-day, at the mouth of the rivers, which will be a 
 case for the magistrates, as knives and pistols (so report says) have been drawn. 
 
 Yours, &c., 
 (Signed) H. HOLBROOK. 
 
 (Copy) 
 
 Kamloops, B.C., 20th July, 18' 
 
 '77. 
 
 The Hon. Henry Holbrook, 
 
 &c., &c., &c., 
 
 New Westminster. •■ 
 
 Dear Sir, — 
 
 I have received your letter of the 10th inst., having reference to the ioinfc 
 telegram of yourself and Messrs. Finlayson & Lane, to which I had already 
 replied on the 7th inst. '' 
 
 By the copy then sent of my note to Mr. Ibbotson (whom, though not 
 named by you, I assume to be the off"ending party), you will perceive that I 
 specially guard against any interruption of the navigation, or action in any way 
 violating the rules generally observed in the conduct of the salmon fishery on 
 the Lower Fraser. 
 
 . *N.B.--A8 may be gathered from my R,- ports. &c.. this statement, doubtlpss nnrrenf 5n itself 
 implies a laiiaoy. "^ C A 
 
REVIEW. 
 
 203 
 
 Under the Bhowing made by you, I am decidedly of opinion that the trau 
 
 mXr'Lr''''%l^' %^"^'"""« """^^^' '^"^ n">Ht hereifter be interlhcted 
 ar^ wW>,« T' fu °ff«^^^«^« "^'^y not have acted under an erron. ,.s view ; 
 ?/.« r!^l f ' *''■ *^ ^'i-c^n^f ances, it might be well to ctmdone the error foi' 
 
 ^tl e autumT?? ^"^^; ^^''^ .'^" ^"" understanding that the trap be remove, 
 in tlie autumn, I leave to you to state to me 
 
 time 8u Jpsf "tn^^^^^ Commissioner of Fisheries on the subject, and at the san.e 
 WestmSr a.5^ the expediency of appointing a resident Warden at New 
 I rZaf fn r '° (though less m-gently required) at certain other points. , 
 wnnS^r^lf ^ ""^ '"^'^"^^^ ^^^* y^"' *"^^ ^^^ers connected with the I^isheriea 
 Sre Tc^lT «««""« «"nX«n»«nt and make such suggestions with regard to th^ 
 future regulations of the Fisheries as mighb seem expedient. 
 
 oittmnil^^I^r''\l'-^"'''''^^ ^fr^^ ^"'^ tbe consideration and sanction 
 obviated '" '^'^^ "'''''^ ^"^""■'^ *™"''^^ ^'^^^ uncertainty would he 
 
 I have the honor to be, Sir, 
 
 Your most obedient servant, 
 
 (Signed) ALEX. C. ANDERSON, 
 
 Inspector of Fisheries, B. ( '. 
 
 (Copy of letter referred to.) 
 Mb. Jo„« I---.^_^ ^^ Y,cxoH., B.C., 2eti. May. 1877. 
 
 Sir, — 
 
 vnn^£/f ^''^''''^ ^"^ ^T ^^^^^'' "^ *''^ 22nd instant, I lose no time in informi,,.^ 
 you that I can see no objection to your constructing a fish-trap in the posh m 
 mentioned by you, provided it does pot interfere%vith the Lvi^S ^f he 
 river, or otherwise violate the usual observances of the salmon fishery 
 
 I have the honor to be, Sir, your obedient servant, 
 
 (Signed) ALEX. C. ANDERSON, 
 
 Inspector of Fisheries, B. 0. 
 
 Department of Marine and Fisheries, 
 -Rn^ A o-^^^„ British Columbia AoENCY, 
 
 "• DepuTMini^ter of Marine and Fisheries. '"™''"' "'" ""^' ''''■ 
 Sir, — 
 
 of flI!fT?i^^^''"?■ ^"^ ^'''''^^'^- *^^ enclosed communication for the information 
 of the Department, upon receipt of which I thought it necessary to vis t New 
 sJen fTv M '' ""^^^^P^l ^j^^ structure complained of, particulaiYy as it wiU bl 
 TsLttilTo^na^l^aW ^ "^^"^^ ""^^^' ''''' '' ^'^^ 4re.sentedL a proiablc! 
 Mr. A. C. Anderson inspector of Fisheries, had, I found, eiven the nn, 
 prietor authority in writing to construct the fish-trap which extfndsabout^3(S) 
 
 r«ew Westminster. It is, however, upon a sand bar, and does not in anv wav 
 •rapede navigation at present; but the probabilities are ?hat the nnir^^^t- 
 liat IrJSality." "" ''"'*'"'^ *^ "'"'"''^^ ^^^ ^*^' *"d «1^«^1 the water in 
 
204 
 
 REVIEW. 
 
 
 In convorsation with the proprietors of other caimerieH, I uHcortainotl thjit 
 -^— tliey consulered it an illegal method of catching Hsh ; but, if in tho abHonce of 
 c/DJiny law covering such matters in the Province this system was sanctioned, they 
 ^ would all adopt this course if the traps in question proved a success. 
 
 I have the honor to bo, Sir, 
 
 Your most obedient servant, 
 
 JAMES COOPER, 
 Agmt Dept. Marine aitd Fisheries^ B.C. 
 
 <»-» 
 
 3 
 3 
 
 
 New Westminster, 9th July, 1877. 
 
 ^ a 
 
 - o . 
 < 
 
 Captain Cooper : 
 Dear Sir, — 
 
 Will you lend me a copy of the Canadian Fishery Laws. 
 
 Parties are building a large trap of piles and sunk with stone in the river for 
 the purpose of catching salmon. It will probably be an obstruction to navi- 
 gation, and, I think, against the laws. Please let me know what the laws are 
 or send me a c<)i>y, and oblige, * 
 
 Yours truly, 
 
 C. C. LANE. 
 
 Holbrook and self telegraph a protest to Mr. Anderson. 
 
 New Westminster, 10th July, 1877, 
 
 Captain Cooper : 
 Dear Sir, — 
 
 One of the Fisheries is putting up a large salmon trap. Messrs. Lane and 
 the others object, as we think it against the law, and will be an impediment to 
 navigation, for, if allowed to remain, we all shall have to do the same. 
 
 A number of piles are driven into the river ; the trap is a large affair, built 
 of woixi, and filled with stone and sunk. I hear some vessels are about to' bring 
 the stone over from Nanaimo. 
 
 It catches the fish both large and small. 
 
 We can only appeal to you to see if it stops navigation. You ought to have 
 full power, as Mr. Anderson is away. We telegraphed to him, but no notice 
 has been taken. 
 
 There was trouble at the mouth of the river yesterday. I suppose it will 
 •come before the magistrates. 
 
 Yours truly, 
 
 FINLAYSON & LANE. 
 
 H. HOLBROOK. 
 
 («) Wi'ite a precis of the foregoing correspondence 
 (b) Index it. 
 
EXAMINATION PAPKRS. 
 
 205 
 
 tlmt 
 e <»f 
 hoy 
 
 B.C. 
 
 7. 
 
 ' for 
 avi- 
 are. 
 
 bto 
 
 uilt 
 ing 
 
 ave 
 ;ice 
 
 vill 
 
 EXAMINATION PAPERS. 
 
 SECOND CLASS TEACHEES, 1886. 
 1. Give 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 i«. a nnti,«.. 
 in sarcasm which may make the condition of thJ Chri;tian a comhtirormu 
 secution-this IS not disputed. But when the battery of jest and contemnt 
 that is brought to bear on hiin makes him shrink ashamed of his nrnf«!«r.n ^ 
 cannot accept the.difticulty of the encounter as an aH^^S^lrhirifir'^ 
 really want terms in which to express our sense of thl weaLesa and inflfn^fi . 
 of men who quite aware that they have right on their sidef and wSu^ 
 
 Csf ird ^:r VeZmT rthr^dic^ ?f ':o^i:ri?^^ 
 
 2. Write a precis of the following document : 
 
 Office of the i-rovincial Board op Health 
 Dear Doctor,- Toronto, July 17th, 1882. 
 
 You may have observed that the Provincial Board of Hpalfli in nr.,..^ .li 
 
 muny Boards in the United SUtes, has decided uLpl'^^^^^^^^ 
 Report of disease prevailing in the difterent parts if the Province nothL 1^ 
 the same time, the accompanying meteorological and other conditions 
 
 sTnTCefTom."'"^ "^^'^^ ^^^"^"^ ^"^^ ^"^^^^ it'to dld^ pSc^^^^^^^^^^^^ 
 
 To this end the Board has addressed this letter to a number of medical nrac- 
 titioners throughout the Province, and it requests you to consider whp^hir^v 
 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 standnnfnl f l?f 
 mvestigatioas to be made as to the causes ind L?ure ordlte l^n be as 
 important to medical practitioners as many others in which they are en^v^e 1 
 and to which they gladly devote more time. The filling up of the bknk forms 
 will require only a few minutes each week ; and should vou bo w l.ml f i * 
 that time to it, be kind enough to inform the Se'et^ at once 2that tlVe^^^^ 
 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 can 
 not do so, you will confer a favor by informing the Board of some ^^^1 
 practitioner in your locality who, in your opinion, would be wfllWtnTplr 
 
200 
 
 EXAMINATIOV PAPKH8. 
 
 Tho re|K)rtH and rumarks of com'HpoiulontH will bo troatiMl a« c«.i«h<luntiHl h 
 Kt'i.uml avoTOKo of hII tho ropcits heiiiK puhlishod, hiuI tho B.wud exorciHiim 
 • liHcrution m montioniug tho iminu.s of imrticulnr localities. 
 
 Although this w.)ik, like that of tho Meto.u-oloKical Kop<»rtorH in ()nt«u-io aixl 
 ;;:";; l^"<«''«ii Itojx.rtois m i„H,iy StatoH of tho Union, Ih dono gratuitouHly, yet 
 this JJ.,anl truHtH that tho nioasuro of go(,d accrning from this Hchonio will l.n 
 such aH to oncourago it to oxpoct, in tho noar futuio, groater pecuniary facilities 
 tor making tlio reports, and tho results to be obtained thereform more nearly 
 j)erfect. •' 
 
 Trusting that you may find it convouiont to co-operato with tho Bourd in 
 this matter, , 
 
 I have the lionor to l)e, Sir, 
 
 Your obedient servant, 
 
 P. H. BRYCE, 
 
 « Sevfitarij, 
 
 3. Show how you would indox tho contents of tho foregoing document. 
 
 4. Give specimens of your method of indexing (a) out-going letters, (b) letters 
 received, and (c) bills or accounts, so that you could make prompt reference to 
 any jjarticular document. 
 
 SECOND CLASS TEACHERS, 1887. 
 
 1. Abridge tho following sentences without altering tho sen^a : 
 
 Tf men of eminence receive reproaches which they do not deserve, they like- 
 wi.so receive praises which are not duo to them. 
 
 The science which describes tho surface of tho earth and its inhabitants is in 
 my opinion, a very interesting department of instruction. ' 
 
 It is a common maxim and, atvthe same time a just ono, that we can exert 
 more intluenco by means of example than by means of precept. 
 
 2. Give tho sense of the following paragraph in as few words as possible : 
 There is now no opi)ortunity of repentance for me, no chance of being restored 
 
 t^j happiness, except through submission, and against that word my proud heart 
 <lisdainfully revolts. Submission ! how would it dim the lustre of my glory in 
 tho eyes of those angels whom I enticed from their state of allegiance by assur- 
 ances very inconsistent with the temper of submission, boasting that I could 
 subdue and dethrone the Omnipotent. But, alas !^ little do they imagaine how 
 dearly I pay for having made that vain boast. Little do they knov Mie -ecret 
 torments that fill my heart with agony, while I am seated on the thro*. t ^ell 
 receivnig their adorations. My crown and sceptre elevating me aV M/e thaiv in 
 lank make my height of misery so much greater than theirs. 
 
 3. Write a precis of the following correspondence : 
 
 «iRs,— Valieyville, Nov. 2, 1887. 
 
 We are instructed hy or.r clients, residents and ratepayers of the township 
 oi Hamboro, to inform rv,^ ,hat the toll-gate recently erected by you at the 
 west end of Lark st'-e t iu ih- tity of Burlington, is to them a cause of mucu 
 aiinovance and Hxnfin?(j: v; ;h>'ut fu»'"'o1i'"" fVio^i anv o^^p.""*-" -.«4-..~^ ^l-a 
 
KXAMIN/Tioy I'AHKKH. 
 
 207 
 
 w ir Mfr«o « r"^frn '"'■ '**-■"'«•'" I"^'-^« fro<,uently covore.1 witJ. 
 C V f n„r rr^ h i"" 'f-^'^\hi^^ug situated witliiu tl.o li.ait« .,f the mui 
 () i c en L h^. f . ^'^'^"' !''f,^«<l there contrary to Ihw ami proper authority. 
 
 Yourn truly, 
 MeHsrs. Slow ,fe Su, t;, 8HARPK & SWIFT 
 
 ^"»"^'"«t""- BarriMt^rH, otc. 
 
 SiKs,— BuRTJNnTON, Nov. 5th, 1887. 
 
 \No ho'4 loavo to ftcknowledKe tho receipt of your fuvor dated the 2nd of 
 
 o \Juk r^rin ?h"^ ^c.n.plaint against the oxistenc; of our toll-ga" 
 
 • ..rwutl^ftl 1 '^'^^f w^ iv.,uosfced tH removal or dinoontinuance. In 
 It ply HO take tlie liberty of infonmiig you thnt the road on which the said toll 
 jH'e stands was constructed by us at considerable cost, that irrkept 1,!^ s .oml 
 state of repair as the. nature of tj.e land in the loca ity w 1 pen t and^t^h^^^^ 
 before we e.-ec ed the gate aforesaid we duly (.bt^ii/ed the c.rsonfc of^^^^^ 
 auhonties of the City of Burlington. Therefore, wo herebVanZLe our 
 deternunation neither to ren.ove the toll-gate nor to Lease collecUng t rthereLt 
 
 Messrs. Sharpe & Swift, 
 
 Valleyville. 
 
 Yours truly, 
 
 SLOW & SURE, 
 
 Barristers, otc. 
 
 SiEs,— Valleyville, Nov. 8th, 1887. 
 
 -'te^r ""' ""'""' ''"" J*"^"'™'^ "''='"'" •" W tether tlu it tlt"^ta 
 ■\M o,. Yours truly, 
 
 """™- ''""' *ISg.„„. SHAUPE* SWIFT. 
 
 4. Make an index in proper form for the three foregoing letters. 
 
IN3DEX. 
 
 Paok 
 
 Abbreviations 156 
 
 Acceptance 67, 68 
 
 Accommodation Notes 52 
 
 Account Sales 89, 90, 105 
 
 Accounts Classified . . 37 
 
 Accounts Explained 2-11 
 
 Advice of Shipment 89 
 
 Averaging Accounts 143 
 
 Bad Debts 138 
 
 Balance Sheet Explained 118 
 
 Balance Sheet, Examples of I 16. 119 
 
 Bank Account I, 32 
 
 Banking 136 
 
 Bank Check Book 136 
 
 Bank Pass Book 136 
 
 Bill Book 58, 121 
 
 Bill of Goods 44 
 
 Bills of Exchange 73 
 
 Bills Payable Account 9, 22, 31 
 
 Bills Receivable Account 7, 22, 31 
 
 Books as Evidence in Court 140 
 
 Branch Houses 141 
 
 Business Correspondence 145 
 
 Business Forms 44 
 
 Cash Account 4, 21, 30 
 
 Cash Book ... 57, 78, 121, 126 
 
 Certified Checks 137, 158 
 
 Certificate of Deposit 136, 158 
 
 Changing from Double to Single 
 
 Entry 135 
 
 Changing from Single to Double 
 
 Entry -. .. 135 
 
 Chattel Notes 52 
 
 Checks 52 
 
 Classified Statements 35 
 
 Classification of Accounts 36, 37 
 
 Closing the Ledger 37, 59 
 
 Combined Statement 44 
 
 Commission invoice Book dG 
 
 Commission Sales Book 96 
 
 Compound Average 144 
 
 Consignments 88 
 
 Cjorrectuig Errors 34 
 
 Correspondence 1-15 
 
 Credit, denned 20 
 
 Vaqk 
 
 Credit Notes 48 
 
 Cross Entries 138 
 
 Day Book 19, 25, 121 
 
 Deposit Slip . . 136 
 
 Debit, defined 20 
 
 Detecting Errors 33 
 
 Discounting Notes, &c 70 
 
 Distinction between Single and 
 
 Double Entry . . 18 
 
 Drafts 67 
 
 Drafts — Rules for Journalizing 69 
 
 Due Bill 48 
 
 Expense Account 10, 22, 32 
 
 Filing Business Papers 192 
 
 How to Deal with Bad debts 138 
 
 Index to Ledger 29, 30, 1 28 
 
 Indexing 189 
 
 Indorsements 50 
 
 Interest and Discount Account 22 
 
 Inventoiy Book 63, 122 
 
 Invoice Book 63 
 
 Invoices 46 
 
 Joint Accounts 102 
 
 Joint Notes 51, 52 
 
 Joint-Stock Companies 120 
 
 Journal 19, 27, 78 
 
 Journal Day Book 62 
 
 Journalizing, Rules for 20 
 
 69, 87, 88, 102 
 
 Ledger 18, 30 
 
 Ledger Index 29, 128 
 
 Letters 145, 191, 192 
 
 Loss and Gain Account 37, 41 
 
 Manufacturing 139 
 
 Marking Goods . 140 
 
 Mercantile Terms 157 
 
 Merchandise Account 6, 21, 31 
 
 Merchandise Companies 102 
 

 ?A01C 
 
 
 46 
 
 
 138 
 
 25. 
 
 121 
 
 
 136 
 
 
 20 
 
 
 33 
 
 , , 
 
 70 
 
 1 
 
 
 , , 
 
 IS 
 
 
 67 
 
 , , 
 
 m 
 
 
 4S 
 
 22, 32 
 
 
 192 
 
 
 138 
 
 W, 
 
 128 
 
 
 189 
 
 
 50 
 
 
 22 
 
 33, 
 
 122 
 
 
 63 
 
 , , 
 
 46 
 
 . . 139 
 .. 140 
 . 157 
 21, 31 
 , . 102 
 
 INDEX. 
 
 Paok 
 Notes 49 
 
 Orders 4g 
 
 Partial Payments <-n 
 
 Partnership jqs 
 
 Partnership Settlements 109 
 
 Personal Accounts 2, 21, 32 
 
 Petty Cash Book 137 
 
 Petty Ledger 137 
 
 Plant Account 140 
 
 Precis- Writing ,] ,, 134 
 
 Precis- Writing and Indexing 172 
 
 Private T^edger 137 
 
 Promissory Notes 7 49 
 
 Proprietor's Account ' H 
 
 Protesting Notes, &c 68 
 
 Real Estate Account 21 
 
 lUccipts ' 4g 
 
 200 
 
 Paoh 
 
 Renewal of Notes 70 
 
 Req aisjites of a Note 49 
 
 P.iiles for Determining Debits and 
 
 Credits 20 
 
 Sales Book §2 
 
 Simple Average 143 
 
 Single Entry '/'] J21 
 
 Six-Column Journal 1 1 ^ 1 14 
 
 Shipment Companies 102 
 
 Shipments §7 
 
 Specimen Ledger Closed 3y 
 
 Statement of Losses and Gains 35 
 
 Statementof Resources and Liahilities 35 
 
 Stock Account 2#, 3<) 
 
 Sundry Debtor's Account 137 
 
 Transferring Accounts from an Old 
 
 Ledger to a New One 139 
 
 Trial Balance 33 
 
 -b 
 
 ' V 
 
 TIIK COPP, ChARK COMPAKV. L'^'T"" hdivtboo ,.^,o^~,.- 
 
 
 
 iJ 
 
 r.