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Un des symboles suivants apparaltra sur la dernlAre image de cheque microfiche, selon le ces: le symbols — ► signifle "A SUIVRE ", le symbols y signifle "FIN". Maps, plates, charts, etc., may be filmed et different reduction retios. Those too large to be entirely included in one exposure are filmed beginning In the upper left hand corner, left to right and top to bottom, as many frames ss required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent Atre filmAs A des taux de rAduction diff Arents. Lorsque le document est trop grand pour Atre reproduit en un seul clichA, 11 est filmA A partir de Tangle supArleur gauche, de gauche A droite, et de haut en bes, en prenant le nombre d'images nAcessaire. Les diagrammes suivants illustrant la mAthode. r i 2 9 1 2 3 4 I 5 6 ti Examination Prinaei* in Oanadian History. (Hlfetory Taught by Tof>ical Method.) Bjr Jambs L. Hughes. Inspector of Public Schools, Toroitto. A Primer for Schools, and Students preparing for BsamUia- tions. Price 25c. Nbw and Special Features. • . z, The History is divided into periods in accordi^ice with the great national changes that have taken place. 2. The history of each period is given topically instead of in chronological order. / 3. Examination Questions are given at the end o^ each chapter. 4. Examination Papers, selected from the officiallexaminations of the different provinces, are given in the Appendix. 5. Student's Review Outlines, to enable a Student to thorough- ly test his own progress, are inserted at the( end of each chapter. . ( 6. Special attention is paid to the Educational, Social, and Commercial progress of the country. ( 7. Constitutional Growth is treated in a brief but compre- hensive exercise. By the aid of this work StuJmts can prepare and reffuw for Sx» aminations in Canadian History more qMckly tham by J\e use of any other work i\, 1 O-aire^s J?x>.iotioal Speil^r. A Manual of Spelling and Dictation. Price 306. Prominent Features. The book is divided into five parts as follows : Part I. Contains the words in common use in iaih lift, to* getlur with Abbreviaiions, Forms, etc. If a boy has to leave *scliool early, he should at least know how to spell tl^ words of common occurrence in connection with his business. Part II. Gives words liable to bf spelled incorrectly XiecaMW the same sounds are spelled in various ways in them. Part III. Contains words pronounced aliki but tpelleJ diffenntly with different meanings. , . Part IV. Contains a large colle«^Ion of cha most difficult words in common use, and is intended to supply matorial for a general review, and for spelling matches and tests. Part* V. Contains Literary Selections which are to be mem* orised .and recited as well as used for Dictation f^esions. and lessons in Morals Dictation Lkssons. ^All the lessons are suitable for Dic- tation Lessons on the slate Ot in dictation book. Ren (Bws.— These will be found throughout the book* I /' 1 Il \}t~ MASON'S OBABUATED SERIES OF ENUUSII ORAMMAJta ]|fa«oit'8 Outlineai of Xliifrlisli Oi'antNiiDi.i*'. Bf 0. p. Masov, B. a., V. O. P., Felloiir of Unl^anity OoUcg* hamim Aninoiiaed £o« ua of fiohboli in Ontario. Vor the ut0 of Joator oImk Price, 45 Cents. Mason's Slioirtei^ C2ii|k;I1>siK Grx^amniAir. With copious and oaiefully graded exerclMi, 248 p«g«s> Price, .60 Cents. Bfasoii's A.clTanoed Ox*ammai*. Indading tiie principles of Qrammatloal Analytii. •Bnkuacd and thoroaghly rcTiied, with EsaminatioB Papon added by W. Booaton, M.A.' 27th Edition, Price, 75 Cents. " I aaked a grammar school inspector in the old country to send me tho beet grammar published there. He Lmmediatoly sent Mason's. The chap> tors ire lessons in such a manner as to be tvailable with almost any text book of English Grammar, and take the J«4ff»fir by oaay staff^s from the simp* lest Knglish work to tlie most diflBcult coustractioiia In tUa language. Price, 30 Cents, Outllneis o:f Enerlisli Grirainiiiai*. Tlicse elementary ideas are reduced to resnlar form by means of careful defliillions and^laln rules, illustrated by abundant and varied examples for practice, llie learner is niatlo acquainted, in modern measure, with the most ini)tortaiit of the oilier forms of >:ug1i8li, with the way i a which words arc conatructcti, nnd with the olomuiits of which moJera Kuglisb is made up. Analyais Is treated so Air as to give tlie power of dealing with sentences of plain coustructiou and modarat* aiSculty. Co tba li^ii|ES'lisli Oraminai*, the saiue snbjects are presented with much greater falnoas, and carried to a more advanced ami difficult stage. Tiie work contains ample matcri> als for the rcnulrements of Competitive Kxaminatiooi raiehlug at least tlia standard of the Sfatriculatiou Ksamiuatiou of tba Vnivaraity •( Lou- doft. nriio Sliortor ]E2ii|S'lisl& GS-rnmiikiii* is intended for learners who have but a liiiiito<1 amount of titao at their disftosal for Knglisti studies ; but the expoiionce of schools in wiilch It lias been the only Knglish Urammar used bias sj^own that, wliao well maslor> ad, this work also iasufllcieut for tlio Loudc^ Matriculation Esawloatioa. I 7 1 r^- \ H. A ^^ ; / /^6 ♦«:xisr /' if?*' ■* w .^' •V- > ¥ '4^ ,* ^ / » . |. (Sa0« * Co s €timntioml Snm. BOOK-KEEPING, BT |S1NGLE AND DOUBLE ENTRY, Designed fur use in the Public and Hiyh Schools, BY S. G. BKATTY, Principal on httario Commeiriut CdJe,ie, Ikdleville, and Author of the Canadian Arcovntant. AND a CLARE. Book-keeping and Writing Muster, Xornud School, Toronto, ^ut^omcb bD tbt |9inist£r of (gbutation. SIXTH EDITION. PEICE 70 CENTS. TORONTO: W. J. GAGE & COMPANY, 1881. Entered according to Act of the Purliiiincnt o^" Canada, in thp year one thousand e^glit hundred and soviiity .seven, by Adam Millet; & Co., in the Office of the Wini.stcr of Afiriculture. PREFACE. "iTie plan of this work being somewhat different from that )! those on Book-keeping we already have, a few words in iustification may be necessary. That justification finds its ground mainly in tlie anxiety of the authors to remove, as mch as possible, the difficulties which beset the path of the young scholar on his first approach to this subject Long lists of definitions of terms which are of no immediate use, md a formidable array of the books required are, doubtless, dculated to have a confu«;ing effect upon his mind. Accord- lingly, no definitions are given at the outset but such as are [absolutely necessary. As assets and liabilities are, in this country, so often connected with Notes^ it is necessary he should know something of the nature of a Promissory Note and an Acceptance. We have, therefore, made some introduc- tory remarks in reference to them. After this, he is brought at once, face to face with the ultimate object of a set of accounts; and his every day knowledge and experience, and his own good sense, are then chiefly depended on for an intelligent appreciation on his part of the best mode of arriving at that object. With a view to this, the nature and form of an account are explained ; examples are given of the separate different accounts showing assets, liabilities, losses and gains ; and then a connected series of transactions origi- nating a connected series of accounts, and resulting in his con- structing a Double Entry Ledger belore he knows even the name of the book. The idea, in f^ct, has been to cheat him into making it unawares. \ FHEFAi.'E. /•« Teachers have found that it is difficult to make a pupil onderstand the Journal until he becomes acquainted with the nature and disposition of the accounts in the Ledger. It has been sought to give him a dear understanding of the Ledger accounts, assured that, when he has attained this, every thing else will be comparatively easy. The language has been made as simple as possible, and lar-fetched explanations oi rules tor journalizing have been carefully avoided. As ioumaU izing is merely expressing in technical form which accounts, in any particular case, are to receive entries, and on which side, he is independent of set rules, if he understands these accounts ; which we presume he does if he has properly studied the chapters on accounts, ending on page 30. Sets containing a large number of entries — even although not difficult — have a tendency to discourage the pupil and prejudice him against the necessary work. The earlier sets, therefore, havfe been made short and simple, that he may more easily trace the connection between the corresponding entries in the various books, and arrive at the ultimate result without becoming fatigued and perplexed with the extent and difficulty of his task ; while a sufficient number has been given to exer- cise him thoroughly in the opening and closing of books. As other special features, the attention of the reader may be directed to. the method given in Set III., Single Entry, of testing the correctness of the Ledger, and to a more complete explanation than usual, in the last two sets of Double Entry, of the management of Bills. The teacher is earnestly recommended not to allow the pupil to pass the 30th page until he clearly understands the nature of the Ledger accounts. In working out the sets, the pupil should make all the calculations for himself whether given in the book or not, and he should draw out in proper form the varioui notes, etc., connected with the different sets. Legibility and neatness also should mark his work. , PREFACE. * • Believing that our adoption of the analytic method of intro- hicing the subject will comrnetid itself to our fellow-Canadian teachers, wc now suiimit the work to them in the hope that judicious and faithful Use of it may be instrumental in instill- in^ into the minds of our youth correct principles on the subject of Book-keeping, and in preparing them for a more extended study of it than the limits of the present worit will kdruit oL I ■:■ ■ I ^ r. r f r-\ PART I. SINGLE ENTRY BOOK-KEEPING. ClTArTER I. INTliODUCTOKY If goo(U aro wold by Uol^fit Sinitli to John Jones, withuat being paid tor at tlu; tinK;, tJiey aiii said to Ih; Bold on credit. Their may be simply a (jcneral uiiilerstanding between the par- tics tiiat till', goods are to be j)aui for in one month, two months, &c., as the casi^ may bo ; or Jolm Jones may give a iviUkn yruiime in somewhat the following form: — J ft/in f^oned. A promise written in ti»is f»)nii is called a Promissory Note, and this])articular one would be called John Jones' note. In th(i former cas(\ it is usual to say t he goods are sohl on account, in the latter that they are sold on note. In either case a debt is cn'ated on the pai t of John Jones. As, therefore, when we. sell on ciedit, we may sometimes receive our debtor's note, and sometimes not, the. tlebts owing to us are naturally divided into two classes • — 1. Debts owing to us, for which we have received tb« debtors* notes. II. Debts owing to us, for which we have not received the debtors' notes. A«, himilarly, wo may buy i//ii a/lei f/n/f., M'^ '*" ****> <"* *»*/- Mael, lyim oJluitaitu ana 'Xr/jt/i/^ Wo/laU, lol ua/tn ieceiaea. oJloCicii oJintt/i, This is called a draft, and is in no wjiy binding on Jolm Jones until he has expressed his willinijfness to ])!iy tlio amount by writing across the f.iceof it the wctid oc(('i)tcdy and his name, antl delivered it to liobert Smith. Thus — V ^ Soionfn, ^.finf f^f, ^^ji>. e/uff^\nrn^^^ *f/f*l f/ft^^, /tfnl- /o «?/•, ol my, ieceivea. ^^^ s^ s It is now an Accepted Draft, or more shortly ;in Accept- ance. It is equal in effai to the Promiss(>ry Note, and dilfers only in form. So that when we spoaU of dcl)ts owing to us, for which we have received our Debtors' Notes, the pupd may, if ho likes, say '■^ notes or accejitiinc.es." When we sell goods to a person on credit, we have several advantages in getting his note. By reatling the note carefully the pupil will see, fiirst, that it is an ncknawledg merit of the 2 BOOK-KEEPING. ?d into two debt; SMond, tliiit thu time <)t" payment is definitely fix^'d. ^e have also this advantage, that we can ssell it like any otlier kind of property. We can pay it to anotiier person for a debt we Kwe liiin, or we can get it discounted at tlio Ijank — a process >vhioh it is not at present necessary to ex])lain. It may be mentioned in pnssing. tliougli the pupil need not trouble liiinself about it at present, that three days are alh)wed on all notes made payable at so many " days or months after ilate," beyond the time indicateil for payment on the note. So that John Jones* note would not be due until three days after the lit September. These days are called days vf grace. CHAPTEK II. THE OBJECT OF BOOK-KEEPING. Tn solving any arithmetical problem, the first thing we do ifi to seek U) have a clear conception of what is required to be found, ami then to examine if we have suflicient information l^iven to enable us to bring out the n-quired result. If the study of Book-keeping wne taken up in thn same manner, much of the difficulty usually attending it would dis- appear. The thing ultimately required to be found from a trader's set of books is his financial posilion. And how is this ascertained ? Most pers(uis — even young persons — are fiinuliar with a statement sometimes found in newspaper's that Mr. , not being able to meet his ])avtn('nts, has called his I'leditors together, in order to lay before them the state of his affairs. In such a case, the two most im[)ortant questions to the creditors are: "Mow much does the trader owe]" and " What has he that he can apply to the payment of his debts 1 '* (»r, as it is genei'ally ex])ressed, '* What are his liabilities ?" and " What are his assets ? " If his l)ooks have been correctly kept, they will furnish an answer to tliese questions. A trader's assets, so f ai' as his business is concerned, will generally be somewhat as follows: — Cash in hand. Merchandise in hand. BOOK- KEEPING. I'M ^ Debts owing to liim for which he has recivedhifl customers' notes. ^ Debts owing to him for wliich he l)as not received his customers' notoa. His lial)ilitie3 will bo — Debts owing by him for whicJi Ik- lias given his n(»t('8. Debts owing by liim for which he has not givon iiis iiote.s. In examining the nature of the different as^sets, it will prob- ably be suggested to the mind of the thoughtful pupil that the debts owing to the trader can hardly rank with cash in the payment of his own debts, and he may possibly be reminded of the old saying, " A bird in the hand is worth two in the bush." This is true, and it is arcoi-diugly usual, in estimating A trader's assets, not to reckon the debts owing to him at what his books show them to be, but to make some deduction on ac- count of the uncertainty of all of them being good, or rather of the almost absolute certainty of some of them being bad. To take this into account at prese?it. however, would only em- barrass the learner. We will, therefore, for the sake ofsim- phcity, suppose them to be good. The assets and liabilities being known, we have all the in- formation necessary to determine i he trader's financial standing. If his assets are greater than his liabilities, he is ?wr/A just iJie difference ; if his assets are only equal to his liabilities, he is worth nothing ; if his assets are less than his liabilities, he is »w- soirent. ■ Suppose, in the case referred to, that the trader's financial position h.as been ascertained from a comparison of his assets with his liabilities, another very natural enquiry on the part of the creditors presents itself — '* How ha.« this unfortunate state of thiiigs been brougiit about?" If his books have been properly kept, they will answer this question also. They will show how he stood at some former period — say twelve months ago — what proHts he has made from sales since, what losses he may have sustained, and what expenses he may have incurred for the carrying ou of his business since. It is clear that, if his profits from salos have been greater than all his expenses of various kiutls, tiiere has been a net ffdin, and his former rajiital lias been increased by so much. If his profits have been only equal to his exjienses, he is just where he was; while, if his piofits have been less than his expenses, there has been on the whole a losb, and his former capital has been lessened by so much ; and if his net loss has been greater BOOK-KEKPTNG. than the amount of his former capital, that capital has entirely disappeared, and he is worth — lesn than noihinq. A trader's books, therefore, should furnish two kilK^S Of information. One of tliese, the present assets and liabilities, will show his present financial positicm without any reference to d, former period. The other, by taking into consideration his position at a former period, and his gains and losses since, will sihow how from that former position he has arrived at his pre- sent one. And, further, as tlie result must in each case be the same, agreement in. remit may be considered some proof of its (Correctness, In order to illustrate the preceding observations, we will suppose the following to be given as a question in simple Arithmetic. A trader's books contain statements showing that he began business January 1st, 1876, with $1,300; that he has to-day (June 30th, 1876), cash in hand, $500 ; merchandise in hand, SI, 000 ; that there is owing to him $400, for which he holds notes, and $300 for which he does not hold notes ; that he owes $350 for which he has given his notes, and $200 for vi'hich he has not given his notes. His profits from sales have been $480, and he has expended for rent $80, and for sundry dther things — as cartage, stationery, clerk-hire, &c. — $50. Re- ([uired his present net worth. The intelligent pupil will perceive that there are, in this question, two distinct classes of data, from either of which alone he can determine the present net worth, and as the ques- tion stands he is at liberty to take his choice. Let him, how- ever, take first the present assets and liabilities. ASSETS. C'as'h in hand $.500 Mdne in hand 1000 Debts owing to him for which he holds his customers' notes 400 r>ebts owing to him for wliich he does not hold notes 300 LIABILITIES. Debts owing by him for which he has given his notes $3.50 Debts owing by him for which he has not' given his notes 200 Total liabiUtiM $550 Total assets $2200 Total assets $2200 ,, liabilities .550 I*resent net worth $1650 Taking now the original capital and the subsequent gains and losses, we have — k'H BOOK-XEKPINO. "Profit from HRleB $4H0 Expended for rent. $80 Suitdry other expenaea CO ' ,\ - 130 Net gain '^^>0 Original capital 1300 Present net capital 81050 From the forejroin*;, the pupil Avill "see that a trader's books should contain statements, in aorne shap*' or other, showing: r Cash in hand. . • I Mdse in hand. Debts owinp; to him, on others' notes. Debts owing to him, I, ^ [ not on notes. Debts owing by him, on his own notes. Debts owing by him, not on notes. [Its Present Assets ^ Hrs Present Liabilities. II. ( His Capital at some former period. \ His Gains and Losses since. From each of the5?e the present financial position is de- termined : from the first, by a simple view of the business as it now stands, without any reference to a former period ; from tlie second, by taking note of the {)osition at a former period, and of the gains and losses since, without knowing anytiiing of the cash we have in hand, or the debts owing to or by us new. The pupil will do well at the very outset to have a clear comprehension of the goal he is aiming at in keeping a set of accounts. If he does this, and maintams that goal constantly and steadily in view, he will have little difficulty in devising the means himself of attaining to it, or else in intelligently ap- preciating those proposed by others, -^ f* ./ f. ... ■ >, . . • ::v>^" ., •■ 'v^'- • — BOOK-KEEPlNa -^ ' CHAPTER III. THE NATURE AND FOKM OF AN ACCOUNT. We have said in the preceding]; chapter that a trader's books should contain statements, in some tihape or other, showing what is owing to him, what he owes, how much cash there ought to be in hand, the merchandise still unsold, and the various gains and losses. -" We have now to consider the nature and form of these state- ments, taking as an example the one showing how ranch cash there should be in hand. Evidently, if we have the cash re- ceived and paid at various times given, we have sufficient data for our purpose. Suppose that on the 1st of June we had $20 in hand, on the 2nd received $50, on the 3rd paid $30, on the 5th paid $10, on the 6th received $80, and on the 7th paid $15. Kequired the cash in hand. If this question were given to a class without any instruc- tions as to how they were to arrange the items, we should pre bably find three or four different methods adopted. FIRST MKTHOD. J[:u4t€ / wa^n en nana 2 oJleet.iv€a eadA (i^yn nana S 9/aut easn 9yti nana 3 <^aiU eadn @X(W nana V oAteeivea cadA (Px*? oane/ ^ ^a / S^tf /latfa 20 1 00 J/une. 3 e (ineeett'ea ^0 00 00 7 ^Wctca 45 01? 430 33 Oif t S5 00 i ,. 7 00 All these plans come to the same thing, and each has it» peculiar advantage. We will not at present sj)ecify these ad- vantages, but will adopt, witli a slight modification, the third metiiod in our further ex})lanati()ns of the difierent accountn. We will put Dr., the contraction for debtor or debit, on the left hand corner at the top, and Cr., the contraction for credi- b noOK-KF.Kl'INr,. tor or credit, on the rii.;ht hand corner. Also, insti»ad of .subtracting tim smaller khIo from t.'n* jj^i'eater, wp will arid Hufficient l » tlio gin;ill(!r to niivke it equal to tiui greater. r3>. r/^ XOff-i/K i. ^SfL Hfji>. ft(tt« / 'J/n Aonri iW 00 Junt .9 M„>/ ! :jo 00 f l-infcftura ' .U^ 00 J l%f'r/ ' 40 00 t 'iJiectivtd ^0 00 \ 1 1 7 ^a^ I 43 00 JJ 00 1 00 a//< Anna fj 00 /Jfi 4J0 00 1 \ 1 i Any of the ibrt^going anangements of the items is called an Account. When wo divide tlie account into two Bides, as in the third motl)od, the left hand side is called the debtor oi debit side, and the right hand side is called the creditor or credit side. When we make an entry on the left hand side wti iue said to (klni the account, ami when wr make an entry on the right hand side we are said to credit the account. This arrangement of the items of an account is the one usually adopted, except as regards the explanatory words in the wide column, which for our present purpose is of no moment. The essentinl ])art of this arrangement is the col- lecting nn one side all the cash received, and on the other all the cash ])aid. In reftTence to this an in;^"'nieiit, the t-nquiring pupil who is anxious to know the reason of everything he does, may very naturally a.^k if it would not be just as proper to put the cash received on the right hand side and the cash paid on the Ir.ft. We answer, yes ; so far as the ultimate object of the account is concerned, thei'e is no reason why one plan should be adopted in preference to the other, except that it is the custom, and thtu-efore we must follow it. In like manner, if we make a statement of the value any person has received from us or delivered to us at various timett, we can ascertain how he stands related to us as Dr. or Cr, # BOOK-KKUI'KVO. : Supj)(>'"-» John Jr.fiHs buv.i go;»(ls friMn us June Ist, liS7C, Rinoiiiiiirig t<» 61 'JO ; Jrnl, I'.iys us !?;>0 ; 3ril, Buys g-Mids f-om U.S. $J')();^ 5ai, bells •,'n()a,s to 'us, $100 ; (»lIi, Pjiys usousli, $J(;. Docij John .JoiK'sowH us, or we liiai, ami hn\v miicli / Airanyiu'^ acourJing to the third luulhod, wo hjivo — V , (I . 1 ^ ^ ^ ^ ^ ^ \j >- ^ •■3 "^i «^ ^ 1 1 ^ ^ ^ 1 I • « ... - • ^ 1 ( •I; y 10 BOOK K KEPI NO. The iiHe (»f the wonls l^j'hlor mu\ Cri'ilitor in connection with lh<' name of a thing, as c.'isli, will uodoiilit present somo diffi- culty to tiu' juiidl's iiiiiid. Me can tjisily iiii// will indicate that we have received the particular kind of thing leprcM-nted by the nanu; of the account. Thus an entry on the Dr. side of Hills lieceivable Acct. will indicate that u:e luive reuived another's note. And as an entry oi!i the Cr. side of Cash Account indicates that ive have parted uHh Cash, so an entrv on the Cr. side of aiiv account in the name of a t/iiur/ will imlicate that icc hare jxutecl with the par- ticular kind ot thing represented by the name of the account. Thus an entrv on the Cr. side of IJills Receivable Account will ijidicate that we have pai led u'Uh another person's note. The pupil will now readily «iee that Caah in hand may be shown by arranging the Cash received and paid under the head of Cash. Others' N'oics in hand (/. /?., wiiat is owing to us for wliich we hold Olhers' Niitci^), !)V arranuin'' all snch notes received and those of Lhcui uhicli we afterwards dispose of, under the head of Bills Receivable. Others^ Notes out annin^t vs (/. e., wh;;t we owe for wliicli others hold Our yutesu by arran-jring all such notes issued and those of tlium wliich we afterwards redeem, under the head of Bills Payable. 11 - ; 1 t f. IIOOK-KEKPINO. fyhat is "V'ivij to ns or bf/ us toi' vvhicli no notes have betfii jjtccivcil or j^iven by us, by anangiiig tin- valine tho ^(jrsoii re- ceives from us, and tltlivers to us, uixler liis rijinn^ as John Jones. The Gain or Loss on the So'^ of Goods, by arranuiug what Uiey cost and what tliey are sohl lor, under tlie liead of Merchandise. The Expenst's of the business, by arranging tlie various outlays lor rent, fuel, gas, taxes, stationery, &c., under tlie head oi' Expense. CllAPTEK TV. EXAIV^PLKS OF ACCOUNTS. TifK ^tndeut is reminded tli.it when we receive anything, as Oasli, Others' Notes, Our Notes, Mdse, 6ic., an entry must be made on the Dr. side of the aeconnt representiiig the par ticular kind of thing received, and when we part with any of these things, an entry must be made on the Cr. side. When a person receives value from us without giving us an equivah^nt, we nni.st debit his aecouiit ; when he delivers value to us without receiving an equivalent from us, we must credit his account. If RoberL iSmith buys goods from us. it does not matter, so far as the statement of the fact is cotuermvl, wliether we say " Robei't iSmith lias bought goods fronj us," or " We have sold goods to Robert Smith.' In the first (Expression our attention is more parties lirlv directed to Rohcrt SmitJis pari in the trans action — what he has done ; in tlie second, to our jiartin the transaction — what we have done. Aud it will very much conduce to a clear understanding of tht' apjiHcation of the terms Or. and Cr. to accounts re])resenting things, if, when we are dealing with one of these accounts, we consider utainlv our part in the transaction, as receiving or giving ; and when we are dealing with a }>ersonal account, as Robert Smith, we consi- der mainly his part in the transaction, as receiving or giving, 12 '' BOOK Ki'EPTNO. , I ITEMS FOR A CASH ACCOUNT. Juno 1st, 1876, Cash in hand $^00. 2nd, Bought Aldse for cash, $300. 3rd, Received cash from Abel Adams on acct., $80. 5th, Sold Mdse tor oasli, $V^20. 6th, Paid for sundry expenses, $50. 7th, Received casli tV<)m Benjamin Bond, in payment ofhis note, $100. 8th, Paid cash to James Heaton tor our note, $130. 9th, Bonowed from (Jharles Coleman, $150. 10th, Paid Daniel Dunn on acct., $100. Required amount of Cash on hand. EXPLANATION. Jr. ) Cash in hand. A] I Cash afterward ( received. ) Cash. C \JT, j All Cash paid. The difference between the two sides will show Cash in hand. i. ^fUh, %. Q/'h /utiia ^00 00 1 soo 00 3 ^eceiuea cJV 00 ^ p/aia 50 00 S ftaecfivrft 4!?C 00 «f ^aJ 430 00 7 "sJteecifiea ^00 00 /o ^aiJ 400 00 f 9neetiv€a /Jfi 00 46'0 00 00 J^^/0 wa4n in ^ojuJ. p 00 fj(? fJO 00 1 ITEMS FOR AN ACCOUNT OF OTHKUK' NOTKS. 1876, June 1, We have on hand Frank Ford's note for $350. 2, Received (ieor^e Cunn's note for goods sold him, $280. 3, Cot F. Ford's "note discounted, $350. 5, Received 13 BOOK-KEKPTNQ. .'i'i If li ■II f!l Henry Hunt's not« at one month tor bilance of his .icct., i'^ino, 6, Sohl goods to Isaac Tnuiiui on his U'tte 8120. July 8, Ht'nry Hunt has paid his note ot" Junt; 5, $l;}0. liequircd how niuch is owing to us on Others' Notes, Cr. PLAN. Dr. ) j Othors'Notesinhand. f Bills I " after | Recoivable. i Others' Xotes dis- ward received. ) { posed of. The difference shows Otliers' Notes in liand. i. Qjjif/'i 4Juccn'rf/ue. %. H'o/ircfiiifff I 1 1 ''''^7'^" I ■/,'J0\ 00\ V£0 00 6'SO 00 in. itatia 1 Jj^O 00 JjOO 00 i c^c^^ 00 i 1 ITEMS FOR AN ACCOUNT OP OUll OWN NOTIH. June 1, 1870, Note out.stfinding, favor o^' Jolm Jones, $200. 2, Olive our note to J.'hn Lord lor goods bought, !$;5.10. 3, Acce]>t(Ml Ch.irles Ci'lcninirs diMlt on us nt two nvniths, for balance of acoount, SIOO. 5. P.iid Cash to .Tohn Jones for our note, $200. 0, Ilonglit goods on onr note frttni .Mark Main, .1?270. Aug. G, Paid our aeccpttuice, favor of C. Colriuan, $190. Required aniouub of Osiv N(»tes outstanding. Dr. Our Notes redeemed. PLAN. Bills ) OuvNote Cr. soutstan 300 00 2 500 00 2'/0 00 A u4 va/ue US vaute 2^0 00 fjO 00 ^SO 00 i> fr* v*iif- n*tn 3^0 00 f^O 00 f^O 00 1 ITEMS FOR AN ACCOUNT OF THE GOODS WE DEAL IN. m 1876, June 1. Value of goods on hand, $1500 ; 2, Bought Flour for cash, $380 ; 3, Sold Flour to Samuel Smith on ac count, $690 j 5, Bought butter from Robert Ridgway on our note, $670 ; 6, Sold butter to Thomas Turner on his note, $480 ; 7, Sold remainder of goods by auction, $1600. Required the gain or loss. Dr. PLAN. Or. What thev sold for. Cost of goods on hand, j i^ierclian- ( Cost of goods bought > -,. ( Value ot *roods on hand * i dise. ) re \ ) ( (if any). snice. The difference will show gam or loss^ as the case may he. / 16 .y BOOK-KEEPJNO. i. QyMeic/uuic/toe, '6i. /■line / f/foa6 ott /uma '7 2 f^Moiuini 5, ^Ofi^ffifU rjfttt% ()(/0 4^0 f6oo 9.'\ 77^ 00 00 00 00 SECOND EXA^^PLE. rash, f.300 ; 10, 8(»la gorxls to James Smith on his note $->00 ■ 12 B(.iurht-oo(LstVom Charles Adin, $.1200; 13, Sold jroods to John Hrovv'i, on accunt, $luO ; U, Goods remaining worth spl 000. Required the gain or loss. '4. f^Meicha.ncu^ie. /. AV*/^. T /^7^. ij ^ , •.• j ^ J lieturns, it any. / m. '>t'WfS •/ =-%:s:;--:— =AijI: / a ^J'adoitfM-- jj /«^ ft6 '6 Havini? laid tiiwii tlic i^c'iicral ])ri?iri|)|p tlmt mi nntry on tlie Dr. side of an nf';()iiiir. in tlu- niiineof a tiling a^ nuMciiandise, indicates that we have received the paitic.iiarkind of tiling re|>i('sc'nt''d l>y tiu* naini? i>r tliea.cciMint, the ]ni|)il niar be led to think the juiuciple at fatdi in tlie case of Expense Acct. It is, howevci-. true, that cvtTy ;'titi'V on the Dr. side of this ac- count indicates soinethin;,^ ivc-ived by us. In the case of stationt'iy and tias there can he no quesLimi. "W*? leccived the Clerk's services Uw the salary paid. W'e received use or occupation of premises fur the jcnt paid. We received cer- tain civic privileges for the taxes i)aid. And if we choose to represt^nt all sncli rhi:'-.s v(^ceived \)\ the word Exptiise, then the ])rincipl(^ liol " ?/■ • " 'I is case, vi/.. that, an «'ntiy on the Dr. .side of Exj . x A- .,. indicates something icoeived nei;eotia,ry for tne u.m»a! ;....':■( >f tiie ou.siaesi?. 18 lie "g of id \ t BOOK-KEEPING. ' "' ^^^V CHAPTER V. EXAMPLE OF CONMECTED ACCOUNTS. ^^■^"\ The pupil can hardly fail to see hovv much the practice of Book-koi^pinii depends upon a knowledge of t)ie nature and objects of accounts. Book ke^'ping may, indeed, be called Account-keeping, .tnd the hook-keeper himself an acrmintuut. In the examples or the viirionjs accounts in the j)receding chapti-r, there wns no miitn;d d«'])endence of one account upou ansary accounts on a sheet of paper, ami cou)pare his woik with tliat in the book afterwards. There are two ways in which lie can do the work, and we would advise him to do it in both. He can t.-'ke one account — say Cash — and, picking out all the cash received and paid, finish it. Take anuther, and finish it in the same way. Or, he can write the headings for all the accounis. and then taking the first entry in the Memoranda) . enter $1.5 on the Dr. side of . BOOK-KKKPING. , 'I ■ . (Jash, and th« same amount on tiw. Or. aide of the account bearing his own name. Then take tlie second, and enter $800 on the Dr. side of MerchaiMli«H, and the same amount on the Or. side of 4bel Bond. And so oti, to the end. Each way lias Its advantages; but for the sake ol' certain lessons to be learned from the latter mode, we would urge the pupil to let this method have liis particular attention. One more direction, and he may set to work. In makin^ entries in the accounts representing things, write the name at me person from whom received, or to whom delivered ; and in making entries in accounts of persons, write the nmie of th thing they have received from you or delivered to you. ^ BOOK-KKKHING. > I B>. (1) HfK*ttf 2 %fo\af 9^Y'***^ (va*va^'o\ Of a I ^7 c/j (r/r*^A. /J C( ^S(> IW jujs sv ro /Of 00 .5C( Of JS.i ^J^d 00 . — 1 JSjS QX/Jj€/2^otui '7*t Aa»n/ '^K 6oo iOJ S45 00 00 00 00 00 il ffl Bl. (V SBrM mccdva/Je. 4' (J (ieo\ae Q^unf ;?/jO J^OO Ji50 00 00 00 I t i/Ji /tuiria Cj l^i. ji-50 ^J/SO 00 00 Bi. c-v mcMmi^uife. Z- soo 00 \ Jim* /^^ ^oo\oo v^. 300 500 ^00 00 00 00 •A *i2 •^A 4 ^0^ , ^>0 00 00 00 %. Ml. (4) BOOK-KEEPING. a "Si, QJ^4r/^OH0 6,50 2240 00 00 00 00 00 00 00 00 00 00 m. 00 00 00 I Bi. (0) /^'/6 23 wa>/iend€. %. %/iad. 3tMi^i, S04i 50 00 40 00 / uM o//iientideii 40 00 00 1 / 50 50 00 w B>. (c) BOUK-KEEPINU. (PUPH/S namk). If: '! [l! 4 A tl P Bi. (V QSMe/Monc/. 'i. (8) WufA Bunn. ff'e t'lof tu tin ^0 00 Jru/ne 3 ^OU wadH /M> 00, fun* 2 Q.Wdsf 1 ^00 00 'f2 2^ QBMi/iaun/'/f ,100 JOO 00\ 00 /,^ 1 ^000 00 $2 %adn 6oo 00 00 / ■^Sj^O • rrt vute *n'nt 2^0 00 00 / /^OO ^^00 00 i. /O 00 24 BOOK-KKliIHINO. m. 00 tot. 00 00 00 H. 00 3l (9) St/mnif/ S^tnLu %. /O OynMe /oo or %ff,i/t ^0 00 Qy^t/.if. y/00 00 /^ :Mt//i >fr Ur •?J0 00 ^i> Qjli.s* Soo 00 '7 rraJi /oo 00 / / / 20 %(t> Of /lienuAfA J/0 CO 35 BOOK-KKEPiNG. The closing entries in the preceding set of accounts will each represent one of four things — an Asset, a Liability, a Gain, or a Loss — and furnish the pupil with the two classes of data for tlie estimation of his Financial Position on the 24:th of June. Let him first make out a statement of his Assets and Liabilities. Tlie numbers refer to the particular accounts in the set. Assets. Liabilities. e/^./ rpoiin in fiatfcl 405 e/K.S (^« ot4t€A on tfoteS ^00 Q/Vfeo*4/n4 40 on aeoou/ni 4^/0 // (^ outsd oJt. QjVeia^ 40 y-Mias ^^fiiaU. €{o HO Ion, on €ieeoi*Hi J!^0 4440 /_ _ 3J5 44^5 44^5 1 111 Next, take the Gains and Losses in connection with the Capital at the beginning. ; eJVo.4 5 yain /lorn tneMf, U/it//ai/' toi ear/i^ttiie ^t4 Ai^iMt/ ttfJ. wo i/A J^40 50 360 45 3J5 , 26 iiUOJi-Ki:.£i'lXG. ^00 2i>0 Ji-0 3JS The account, No. 6, in the name of the pupil could not be closed until the Net Gain or Net Loss, as the case may be, had been ascertained. The first entry is intended to show how much he put into tiie business, that is, the Financial Posi- tion at the beginning of the period under consideration ; and the last or closing entry, the Financial Position at the md. The former is already shown. To show the latter, if there has been a net gain, it must be entered on the credit side, thus increasing the Original Capital ; if there has been a net loss, it must be entered on the debit side, thus lessening the Original Capital. The diflference between the two sides will then show the Net Capital at the end of the period. The result of the business in this case has been a net gain of $360. The account when ciu&ed will, therefi(le of the account in his own name, and one on Dr. side of Cash to the same amount. The pur- chase of goods from Abel Bond, on the 2nd, gave an entry on the Dr. side of Mdse, and one on the Cr. side of Abel Bond's account to the same amount, lie has, indeed (and, perhaps, without knowing it), been making a Double Entry Ledger. Now, in the particular exercise here given, as all the trans- actions are on credit, one of the entries in'each case was neces- sarily in a personal account, and the other in an account representing a tiling. Common sense will tell him he can- not dispense with the entries in the personal accounts ; he may (though he had better not) dispense with the entries in the accounts representing things. Had he done so, he would have had a Single Entry Ledger. If he will turn to the openings containing the accounts (page 22-25), he will find them arranged so as to assist him in under- atanding the diff"erence between the two methods. The second opening, taken alone, is Single Entry ; both openings, taken together, constitute Double Entry. In the former, he debits,^ and credits only persons ; in the latter, he debits and credits botli persons and things. And by " things," we mean not only material, tangible things, snob as cash, merchan- dise, notes, but also any accommodation or advantage to which, in business, a money vmIuc is attached, as use of money (interest or discount), occupation of premms (rent), services of dirks (wages), &c. The learner will have anticipated the ( v;Hnwf.>n r>iir NitU'« is found. Kxplaia ><( t'«iaalKdh I BOOK-KEKPING. ,'/ii how what is owing tiB, or what we owe others, when no notes hare been f recuivtnl or ^iven, is found. Explain how the Gain or Lost-: on mer- i chandise is found. In the example of connected accounts, hotn often u \ eacli, fact stated ? What name is given to the book containing such a collection of accounts ? If we call ourselves the First Party, and the person we are doing business Avith the Second Party, whose part in the I transaction do we mainly consider in a personal account, and whose in a | non-personal account ? Which of these accounts, taken alone, constitute^ Single Entry ! Which constitute Double Entry ? Sv CHAPTER VI. INTKODUCTORY REMARKS TO SINGLE ENTRY. In Single Entry, the Ledger contains accounts only for persons. The transactions which affect any persons in their rehition to iis as Dr. or Cr. may be entered at once in the Ledger, or they may first be entered in a book called the Day Book, and afterwards, at convenience, transferred to the Ledger. If James Smith sells to John Brown, July 1st, 1876, one felt hat on credit, for $3, he may enter as follows : — ^. ■n €^ieupn , DAY BOOK. S*, e/«3 tknf. *tM net/ 03 00 i. e/o mie ■u.a no/ LEDGER. Cif/yri ^teuj^,. i. oo\ I . Or, he may dispense with the Day Book, and use only the Ledger. 30 \ ■ ,ii>,i,},CJSAi..m**t ' m.i /u V rc been | y/ien i» \ such a id the ; in the \ se m a ,y stitutft' ; BOOK-K lOEPINC. John Browu in his books would write ai> follows ;- DAY BOOK. H. \ «t>Oo' one Jefi hut r^y. 0s 00 ly for their n the J Day a the ), one %. LEDGER. the m. ^a'tnM (^T'rntin. %. 00 Or, he may dispense with the Day Book, and use only the Ledger. We have here used the preposition " To " in the debit entry, and "By" in the credit entry, out of deference to custom. Some do not use them. And certainly John Brown is not Dr. to the Hatj but to us for the Hat. Indeed, the word "for" would, in general, better express the meaning, if it be thought necessary to use any word at all. The following examples will further illustrate the mode of entering transactions in the books of both debtor and creditor, •with which the pupil should become familiar before progressing further. For this purpose separate sheets of paper, ruled by the pupil, should be used. Let the pupil write the transactions on one page, numbering them, and make the proper entries on another, with their corresponding numbers and correct dates, as in the following examples. The pupil should be required to write out a number of transactions, in addition to those given in the book, and after having studied them carefully, be prepared in recitati!'• BOTH vhich he James )r which . Wm. iiper, for ivceiver. If which ver. ,1, illor. Ji()OK-KEKPIN6. MODE OP ENTKUING Tiller FOREGOING TRANSACTIONS. No. 1. ■N ajj. lamfts Smith entm-s in his book — 1 ?, @Jo /A ^. O/py^ fou'i Uatit^ o/A^/iom " (t/entAettna /iif4, «/ J^Cc. '' / //l. /onto J /J" /06. f ai '/Of. (sTo ^*^' BOOK- KEEPING. it it Jan. 8. Sold Geo. Denmark, 1 necktie, $1.25; J doz. hand- kerchiefs, $2 ; and 1 pair suspenders, $1. " 9. Sold J. R. Dingman, 1 boy's suit, for son John, $18 ; and 1 coat for Robert, French cassiraere, $8. " 11. Bought of John McDonald & Co., 1 piece of English broadcloth, 25 yds., at $3. " 12. Sold J. R. Dingman, 1 pair doeskin pants, $8; 1 vest, $5. " 1 5. Sold Geo. Denmark, 2 neckties, at 25c. " 16. Received from R. J. Wallac*?, on account, $20. 17. Sold W. J. Graham, I pair French cassimere pants, $10 ; 1 satin vest, $5 ; 1 overcoat, $25 ; 1 suit Scotch tweed, $25. 19. Bought of John McDonald & Co., 24 yds. French cassimere, at $2 ; and 10 doz. linen handkerchiefs, at $3. 22. Received from W. J. Graham, on account, 4 tons coal, at $8. 23. Paid John McDonald it Co., on account, $50. 2 i. Sold R. J. Wallace, 1 dress coat, $30 ; 1 cassimere vest, $6 ; 2 pairs hose, at 45c. 25. Received of »J. R. Dingman, cash on account, $6. " 26. Sold to A. B. Chatham, 1 black cloth coat, $20 ; 1 pair cassimere pants, $8.25 ; took in payment au order given by James Hughes. Charge these goods to James Uuglies, as they were given on his accmint. ** 27. Sold J. R. Dingman, : shirts, at $2 ; and 1 frock coat, French cloth, $30. " 29. Gave John McDonald & Co. my note at 3 months, on account, $53. " 30, Received from W. J. Graham, his note at 2 months, in full of account, $73. ** Received from George Denmark, cash in full of ac- count, $4.75. It (( tt THE FOLLOWING ARE THE RESOURCES AND LIABILITIES, NOT SHOWN ON LEDGER. Merchandise nnsold, as per Inventory, $750 ; Bills Receivable on ha,nd, JV. J. GraMm's JSote jw $73 ; Cash on hand, $479.75 ; Siwe fixtures, $200 ; Am owing o?i Note^ fanor of Jotm McDonald ' Co., $53. 42 BOOK-KEEPiNQ. statp:ment of resources and liabilitie.s. FIRST SET FOK PRACTICE. Resources. Merchandise unsold, as per Inventory Bills Receivable, W. J. Graham's Note for Cash on hand Store fixtures, as per valuation - R. J. Wallace owes on account James Hughes J. R. Dingman <( « (( (I - $750 00 - 73 00 - 479 75 - 200 00 . 68 90 . 70 25 - 76 00 Total Resources $1717 90 Liabilities. on '5: Am owing John McDonald & Co., on account - Bills Payable, outstanding Note for - Total Liabilities - - - - Total Resources at closing " Liabilities (i Difference, or present Net Capital $50 00 53 00 - $103 00 $1717 - 103 90 00 $1614 90 $1614 90 - 1500 00 - $114 90 Present Net Capital Deduct Net Investment Net Gain The pupil will see by the above statement, that — To find the Net Capital we subtract the Liabilities from the Resources, and To tind the Net Gain we subtract the ^et Capital at starting from the Net Capitid at closing. Note. — If the Net Capital at closing is less than the Net Capital at starting, the difference will show the loss , and if the Liabilities are greater than the Resources, the difi^erence will show the Net Insolvency. ^ 43 BOOK KEKIMNO. 'fill QUESTIONS FOR REVIEW. How many hooks are uaed iu Set I.f For what kintl of business is this mode of keeping books adapted ? How is the 8])aco to be allowed each account determined? For what is the left hand marginal column used ? For what is the space Ix'tween the date column an(r the money columjis used ? For what are the luft hand monoj' columns used ? For what the right ? What are done with the accounts that have the debits and credits equal ? What does a double red line imder an account in- dicate ? What colored ink is used for ruling and balancing? How are account" losed in which one side is larger than the other? On which side and lU what colored ink is the balance ])laced ? What should be made at the time of closing the Ledger? What should the statement contain ? In answering the following, the pupil may have his statement before him : — What effects have you on hand at the time of closing ? How much cash ? How much do you owe others ? How much do you owe in notes? What are your total resources at closing? What are your total liabilities ? How much is the dilforence between your assets and liabilities ? What is it called ? SINGLE ENTRY. INSTRUCTIONS.— SET IT. In the follow] nej set, instead of entering the transactions directly into the accinmts, as was done in tlie preceding set, they are first recorded in the Day Book, and afterward trans- ferred in an abl)r(»viat<'d form into the Lec^gcr. When business transactions boconie numerous, it is inconvenient to turn to the proper accounts an«r. John Johnson is next credited with the amount due him. This finislies the opening entries, and the books are now ready for any transactions that may take place. As the traiisactions oi this set are all of a simple nature, special explanations con- cerning them have not been considered necessary. The entries should be arranged in the Day Book just as they are given. All cash transactions are omitted except those affecting the accounts of persons with whom we have dealings, addi- tional investments, and the withdrawal oi" money for purposes Aiot connected with the business. The figures in tlie centre, between the entries, represent the dates when the transactions took place. The rulings should always be in red ink, and nmy be omitted until a page is filled. ■ 45 U 11 I -1^1 J III • BOOK-KUEPINO. r They are for the purpose of keeping the entries distinct, and thus rendering tiieir transfer to the Ledger less liable to mistakes. The iigure in the left hand mt:rginal column shows the page of the account in the Ledger, and denotes that the entry has been posted, and should, therefore, not be written till that is done. Posting is done as follows : — after writing the name of the person who is to be debited or credited over the space allotted to his account, with *' Dr." on the left and " Cr." on the right, then write on the proper side of the account, first the date, next the description or item, then the folio or page of the Day Book from which the entry is transferred, and lastly the amount. After this is done, turn to the Day Book, and in the column to the left of the transaction place the number of the page that the account is on in the Ledger, to show that the entry has been posted. In each book the page of the other is given for reference in examining accounts, making out bills, &c. When there are several items in the Day Book entry, in order to save writing, tiiey are called " Sundries " or " Mer- chandise " in the ]jedger, and the total amount is entered. The items can be obtained by referring to the Day Book. It will be observed that P. L. Doriand paid his account in full on the 10th of Jan., when it was closed up, but having occasion to do furtlier business with him, the trauouctious were posted in the same account. After all the entries in the Day Book are posted, examine them, to see that your work is free from error. Then proceed to close the accounts. Those that remain unsettled are closed by a red ink entry, writing the words " To " or " By Balance " on the smaller side, as in Set L Accounts such as Peter Cooper & Co., in which the Dr. and Cr. sides are equal, are closed by ruling up same as in example. The proprietor's account should be left open until the gains or losses have been ascertained, and after the statements are completed, the gains should be entered to the credit side, or the losses to the debit side of this account. Then close the account, and bring the balance, which shows his Net Capital, down to new account. If the result of the business should be a loss sufficiently large to make the debit side of the proprietor's account larger than the credit, the difference or l)alance will show his Net Insol- vency. 4« &Monio, ^anua^^, '/oW, LB 1 u oSa/anee ojf accon^nf ilue n*tn IniA aa4« t-200 500 ^jOO II So 3 M^. Sa>lla S'/oi4k « 3 Mi, iPotAi So 3 /L. "^c^e f* ^ A&t. ^u^«% f2V%€. ' \ 00 00 00 00 iB4- 33^0 /^ 00 36 26 A 00 47 00 00 44C 00 /» 00 2 J 00 2on/€i, fanua'rfi 3, /rS"^'^^. -1 'jr ^Si. ^1. 4C ^^ ?,a^A 5 u ^fftnf4 oMiOfiirt ft' we. Sou 25 ^u4h. ^ola/cfA 8 SI 2 /SA. Wou* <' ,5 Mi. ^v/<^tm oTfin 9^. v. ^ine*n S'c ^2 ^6. JSfMe/ 10 ?^J ^,uA. 7neui $/'J^0 05 '52 0^. ^. ^0}/rr„r/ %.. &0h wo Aft t'/tf /fiM Of ar/'M44*U 48 /2 //O M ^ 00 ^0 y 5i' 9 00 4'^' 7 '00 fO 00 00 /s 00 /^ r / 32 ^4 fO I 1- %i. ^y ,W /!a,iL 'iioln Jfio*t. &/tyat 18 19 - i ■>. •■Nt »5 . ^ .»^ •> ^ -^ ^ 1_ * »3 ^ ^ r^ ^ ? 1 "^ "1 i 1 •€ ^ >= "^ ^^^ ■-> 'o • •«* ^ '^t '^ "^ v-^ S. «ci •> H» ^ i ^^ ^i^ ■vi, ^ '-^ >;$ ^) ^> «^ § v<| ^s ^i :? s. ' i> K ~ K ^^. 62 IV^ '^i ^ C I S ^ % ^ '■"> ♦>» -I '^ "^ ^ ^ •J "r ;^ ■^-^^r*)- 1 < 3 I ii 9« *1 4 ^ ^ ^ 1€ &» ^ 5: i 5: «a ^ k = ^ • ^ <;i> «5i '5i, ^ ^ "O ^ "^O Nil* ? «^ «^ S^ ■>« ">i^ ^ 1n^ ii 53 § !l Nt '■■ «^ 'T* ^ *< *5 •v^ S» S i ^ ^ Q) i^== ®) si. >. H' S^ s- ■^i* 1 <^ ^ ^ 1 ^ ^ Si •Co ^ N(i , •» «^ t V; J * S& NS" j! '^ ^ Nto ■'So X S^ ■' •^i •V >i» "^ 'vi Si "^ »- 1 •^^ *^ 1 ^ ^ ^< 1 s ^ "** lc5 ;^ ^ v.^?^ ^ ^ ^ Ns Ns ■> «;, i^- ^ ^^ «^ i^ ^ ^ '^) '^ !^ ^ '^^ «V3 ^ ^ K ^x 1 •> N> -^ ^ 1 *1 1.^ i^ I^^i^ ^ ^ ^ ^ ^ ^ J: ■^ ^^^ M^ ^ ^ A^ ,'' IN jtt ft "^^ V, ^^ **-. 8^ i • 'Wl' :- C. — ^ ^^1 (i!d ^ ^ ^'^ •X. >. ~ Ci !5 «^ 1^ r V s^ Vi Si V, »«^ ^» ^s ^ ^. 1 Cv. «^. <-, ^. :■ 'HL, ^< ^ ^^ -^ Ok jL.::^ *> ^ '^ ^ V .v^ V; ^ ? ^ %) ^ ^. sp ^ 1 ^ f" a s • 1 5; C: ^ ^■^ 1 ^ 1 4.N 4,> ■■■■I BOOK-KEEPING. SINGLE ENTKY. STATEMENTS— SET II. aianceA oj( Ine c^^edaei, Ian. S'/, ^^^^, Personal Accounts Receivable. Qnictinyd xlJinitdon. rrutiatn o^Oiaacii &o(a€ oiuti^ia f'^ olheM J^5 34- /J Personal Accounts Payable. /ivmed Loioiun ^ wo. 9Jol{iu owma ic i/iale aiine in naind ituu <f,i/fHfn/ ,• (nWMe {/inid/ie00 00 *< ^e/ei ^fi^y^ ftjc 400 00 QJ^moun/d ctiUud /oiuutla 64 ^000 JOOO 00 00 e 9 s &o uif /oflotttirta rtf/ifA adiiHttiffl v^ ^a/ancf, f/t'f ^. Jl ^iuee -/JO 00 ff Sf/wau/ ^^iHon 200 00 M u a tt Jr. 9^. ^rem/t/rnt %>. % 65 /gJ/O doo 400 22JfO 00 00 00 00 JOOO 00 i'oO 200 ■/JiO 00 00 00 JjiO 43250 0€ r ^f .^Ji'y/O /JifJO 00 1 ^ \ 2^ 00 ^ K B. ^ S/^ir, ^^o. %. .'T :300 00 ^ G^ 7rr//a.,^ m. ^0 ^0 coJ/^^^ ^AaM6, tU ^/'50 /J 00 '< 6 <^c/w» " JO J 00 'i " i? Wfifiiu ^ini»in iiJu^OM, ' al i$6 /.^ 00 " / ©^<<^ 'ii>5>^>/^;/f ^ed. } 6i«ad J* 00 % .33 00 i< * ^0 00 «^ (^ ^lon/enae ^i. ^0 ■/ mu//fc/Jac4 Wiak -/£ 00 .". " ./ ^4oUaf^eSBfJ6leuc/,iB.7K ^0 00 4 " / ^olnei f^lauJ ^ 00 ^Z 00 " ■ . J o ©J^ M, ^^mcoe %. y iiBu /u'd o/Vo/e a/ ■/ ■nioUfij /oi aoo,o ^^ad^i /ifKci i/if^vn /J*» ftjc n " i> waii'td Qmau wna^id, at 30 00 o> fri. tfOy wcuin on aie . 19 0adn <*» /iiU Of ale %. 20 4 S". Si., (^ion/fuac ^i ^ / (fAaffe ■ o 'A 3 " « i>JO 00 JOO 00 2^ 00 20 00 * 10 ^^f^ 00 (<>J^aua^Ce, When due. Amount. W^hen and Time to ruu. Year. < 23 2J • c s >> 3 •-9 > O ;2i Q how redeemed. 3 <- /Oi/u^ 4-00 00 /JO 00 f 0{jOO 00 75 ,rii BOOK-KEEPrNQ. INDEX TO THE LEDGER. This is a small book, or space ruled in the Account Book, in which are arranged, in alphahntical order, the names of all accounts in the Ledger, together witii the pages on which such accounts are entered. The object of keeping it is to enable us to refer readily to accounts in the Ledger. Whenever we open an account in the Ledger, we enter the name of the account and the number of the page in the Index. If an account should be transferred to another page, a red line should be ruled through the figures of the old page, and the numl)er of the new page placed in the Index. In real business the Index generally has a page allotted to each letter. The following illustration will be sufficient to explain how it is kept : — B. . c. D. - E. S/^in ^- %., ^. 99. . K. J£atMVi/otfj ^. ^Jt. M. N. O. P. Q. R. S. Mfnem, ojl^. ^j T. U. L J. V. W. X. Y. z. 7C -5 ^ f ^ s .8 8 ^ ■> 1 ^ i 1 1 1 1^ ^^ ^ .■5 « •3 ^1- _*>» §^ K ■> ^ i^ ^'^ ^ 1 ■? >. ^ ^ ^ 3_ «»3 X »>. .5^ 1 5^ 5t ^O) '!i> '^i -^ '^^^ 1 1 ^ ^ ^ ^ i| «o <^ '<^ *3 *^ "^ :?» V*^ s^ '^i ■^ *a k^ I <^ "5i '^ "^ "v, ^ ■si 9^ "^ Nik «^ *5 "ti -I ^ .« ^ ■> «^ ^ ^ .'^ 78 ^ .s ^ (30 li Si V H N'S» t) s^ >5 N> 0) 1 •*^ ^ <;- ^ f^^ 'ft 7y N 5v ^ >; 1 ^ ^ ^ ^^ ^ N. % ^^ ^ ti_._.__ 1 "^ ^ <>« 1 "Vi '^ Si ^ '^i "^^ <^ '<^ «^ «^ ^ •> (.\ s^ N6 1 • •^ ^t ^ 5sS ^ 3 ^^l§ ^i ^ ^^ ^> *«s ^ "> «[ «*5 ^'5'" n^ ^ - /'- ' IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I l^m |Z5 Ui Bii |2.2 2.0 Ui 14.0 I IS^S 'V '■ . ■ ' ||l.25 IIIJU |||.6 ^ 6" ► Vl (?>^ ^ Hiotographic Sdences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 873-4503 \ iV •s? \ \ * ^ '^ -^.v ^..■<^'' '^ iV ^ 6^ \ ::?* 1 1 .1 ? N. »5 *5^ «i> >. ) 1- "^ <^ "^ ^ ^ <^ 1? ^ -IJ? V^^% •N^'^ ^ 80 "^^ i ^ ^ I 2 1' ^ "^ Co ^ *3 •j •^ > 1 ■v> Si § %.5 1 ^ ^ ^ •3 »5 •5 ks •^b i 5: ^ •^ ^ «5 ^ ^ «3 •I 1 ^ is •^b ^ v) 1 IWXJK-KKKPINO. . V STATEMENT.— SET 111. PROOF OF POSTING. ^ff/aei Ma/anr.cA, ^/ih/ 30/^, /t^jT/. Personal Debtors. 30 00 // /^ 30i) — — * // 7^97 Personal Creditors. 3ji)0 W/Sf 00 00 00 00 MeAomeed ^j^ SmM/j'^ui, ^/lu/SO, /f^^^ ^37 ^^ '"" • - ^77 '7 " ua.tn Wie6*tU Q/K/ ''S^/ufa/ S^/S7 /r f^itmU ^,Mtni qA^ V.€^>U€t/ 8S - Sf^37 /^37 /^ S^2S7j^ 3S BOOK-KEEPING. Mkmoranda of Hastings & Durham's business transac- tions DURING. THE MONTH OF MaY, TO BE RECORDED AND WORKED OUT SAME AS PRECEDING MONTH. 1^^ Before recording the transactions of this mhnth enter tlie difteieiice between the debit and credit side of the Day Book for the last month and the gain, added together, which amount to $12208, in the credit column, as explained, before conunencini; the Set. - i( «4 4< (t (* <( ft 1877. May 1. Bought of D. S. El}j;in & Co., Bill of Lumber, amount- ing to $120.50 ; Paints, Varnishes, &c., as per Bill, $30.40. 2. Sold T. K. Frontenac, 1 Rosewood Tete-a-tete, 140 ; 1 Gothic Mahogany Bedstead, $18.50 ; 6 Carved Ma- hogany Ohaii'b, at $4.50. Cash sales this day, $75.40. 3. Sold J. H. Lambton, 1 Mahogany Bureau, $16 ; 1 Black Walnut Centre Table, $15 ; 1 pair Ottomans, $10; 1 Stuffed Back Chair, B. W., $12,75. Cash * sales this day, $120. > 4. Sold T. M. Welland, 1 Double-leaf Secretary, $30 ; 8 Kitchen Chairs, at 50c. Paid our Note favor of A. Giijg, $350. J. H. Lambton has returned the Bureau bought on the 3rd inst., it being too large for room, for which we give him credit, $16. Cash sales this day, $160.40. 6, A. R. Simcce paid on account Cash, $125. Sold . Edward Huron, 3 Cherry Wash-stands, at $3 ; 2 Looking glasses, at $4.50. Paid for Cleaning Store- room, $3. Cash sales this day, $45.25. 6. Sold Peter Grey, 1 Hat-stand, Mahogany, $12.50. Paid Men's Wages for week, $40.50. Cash sales, $75.35. 1' 8. bought from George Young & Co., on our Note at 3 months, Merchandise, as per Bill, $450.50. Note. — As no personal account is atfected by this transaction, it is merely entered in the Bill Book. " Sold R. J. Bruce, 3 Mahogany Arm Chairs, at $4.25. Cash sales this day, $137.40. Peter Cooper paid his Note of April 4t'li, $20. I 84 30; 8 of A. I the large Cash Sold Jtore- .2.50. sales, at 3 this took. K.25. id his <( <{ (( « BpOK-KKKPINO. 1867. / May 10. Sold D. S. Elgin, 1 Hall Stand, 85.50 ; C Parlor Chairs, at $4.25 ; 1 Piano Stool, $10. Received from A, R. Simcoe his Note at 1 mouth for $50. Paid for Post- ace Stamps, $1.50. Cash sales to-day, $170.15. 11. Solcl Peter Grey, 10 Stuffed Arm Chairs, at $10 each; 12 Carved R. W. Centre Tables, at $30 each. Re- ceived his Note at 2 months for $200. Oash sales^ $170.G0. 12. Received from A. Simcoe Cash for his Note of April 9th, $28. 13. Received from A. R. Simcoe, Note against John Long, dated the 4th inst., at 3 monljhs, for $100. Sold T. K.Frontenac, 1 complete Parlor Set, $150. Received in part payment Wm. Wilson's Note, dated Jan. 14th, at 4 months, for $100. Received from F. M. Welland, on account, $25. Cash sales this day^ $134.20. Paid Workmen's Wages in cash, $56.5.0. 15. Sold A. R. Simcoe, 4 doz. Cane-bottom Chairs, at $14 ; 6 doz. Carved Mahogany at, $25. Received in part payment his Note at 1 month for $100. Cash sales to-day, $196.70. 17. Sold R. J. Bruce, 1 Corner Stand, $12.50 ; 1 French Bedstead, B. W., $18.50. Received in part pay- ment cash $20. Wm. Wilson paid his Note due to-day, $100. Cash sales, $215. 19. Borrowed from Edward Huron, Cash $5 account, $5. Bought of A. E. Long & Co., Merchandise, as per Bill, $425, for which we gave our Note at 1 month. Cash sales, :$67.40. 20. Sold D. S. Elgin & Co., Extension Dining Table, $45, and received in part payment Cash, $25. Paid Workmen cash, $64.70. Cfuh sales, $110.40. 22. Received from F. M. Welland, an Order on R. J. Bruce for $20, which Mr. Bruce accepts, and places to our credit. Note. — Credit F. M. Welland with the amount of Order, as you received it on his account, and debit Mr. Bruce. " " Received from Edward Huron, Cash, $5. Paid for sundry expenses — Postage, $2.25 ; Advertising, $15.60 ; Carting and Piling Lumber, $4. Cash 40^, $64.70. 86 t( « « '^ •^ ^ ^ t 5 5 s ss s • NS ■% % v2 i f ^ 5! ^» •\ "a a >-^ f^ ^ i^ ^ ^ •«s ^ .1 >5 ^^ ^ v^- 87 N2 ^ ? ^ 5^ ^ ■^ ^ ^ 1 s I '^^ 1^ ■^ ^ ^i •^^ '^ ^ ■> "^ l!? ^ •^ >, ^ •> *^ «S^ 'N *«^ .« Jt BOOK-KKEIMNO. • - QUESTIONS FOR REVIEW. What additional books are used in this Set 1 How may a proof of correctness be obtained ? How often are books closed in most misiness houses ? What is the difference between the Day Book of tliis Sol and that of Set II.? What advantage is there in placing debits in one column and crodits in another ? Does a check mark show that an entry has been cor- rectly posted ? What do the Day Book and Casli Hook give a cctmplete hi8t«)ry of ? What is the Cash l>o(>k a check against ? Wliat is the left column used for, and what the right? What does the iliflcnjuco between the footings of the two sides show ? What exicts if the ditTerencc does not agree with the cash on hand ? How often is the (Jash Book balanced in this Set? What is the use of the l'»ill Book? What advantage is it to know when notes mature ? How are invoices entered or kept ? What does the Inventory Book contain ? How and when should names be en- tered in the Index ? How are the books of this Set opened ? What advantage is gained by entering the transactions in all- the books for each day before taking any entry of the succeeding day ? What accounts are first opened in the Ledger ? How is the proof of posting obtained ? What is done immediately after posting? What should be done before commencing the second month, in order to make the excess of credit in the Day Book equal to that of the Ledger ? The following questions to be answered from the Ledger and State- ments : — What persons ow*^ the Firm at the end of the first month, and how much? Whom do the Finn owe, and how much? What is the difter- ence between the total debit and credit balances of the Ledger? Give a list of the resources of the Firm. Of what do the liabilities contist? What is the net capital, and how found ? How much did the Firm invest? What is the Firm's net gain, and how found? What is each partner's net capital at closing ? How found ? What is placed to the credit of each partner before closing his account? What is the differ- ence between the debit and credit sides of the Ledger at the end of the second month ? Of what do the assets and liabilities consist ? What is the net capital of the Firm ? What is the Firm's net gain ? What is each partner's net capital at the close of this month ? SINGLE ENTRY NOT A PERFECT SYSTEM OF • ' BUSINESS RECORD. The pupil will do well to read again the iiitrodnctory chap- ters. From the general view there given of the information which a .set of accounts should furnish, he will be able to form an opinion as to how far Single Entry accomplislies it. He will remember that a complete set of accounts should both de- fine the present Financial State of the Business, by showing the Assets and Liabilities, and also tell us how ^his condition has been brought about, by showing 89 B<)UK-KKKl'lN(i. tlie Or'ttjinal CapUul, and the various subsequent Gains and Lobses. it' lu) will «)|»en to thn oxamplo of connected accounts (pageg 10 to li'J), lie will seo tli;it Siiigh^ Kutry, .so far as the Ledjjjer ' is concerned, doi's not nmet even tlie jirst rei;juir('niei\t. For (leavnig out of consiileiation the proprietor's Capital Account) it shows oidy the debts owiiij^ to us and by us on personal account; that is, debts owin^ to us for wldch we iiave not re- ceived others' notes, and debts owing by us for which we have not given our notes. Tliis, however, is compensated for in Set III., by intnxhicing the Cash Book and Bill Book ; so that, taking tiiem in connection with the Single Entry fiedger, we have the material for finding all the Assets and Liabilities, ex- cept the asset of unsold merchandise, which, in raost cases, will have to be found in either system by actual taking of stock. But in reference to the second requirement, the only element he has is the Oriyinul CtipikU, as shown in the proprietor's Capital Account ; he has nothing to show how much has been gained or lost on sales, antl what incidental expenses have been incurred. If he had alst) a statement of the cost of the goods purchased and the proceeds from sales, and one for the expenses, , he would have all the data necessary for meeting the second requirement. He wouUl, in fact, then have all the data which Double Entry supplii's, although not contained between the two backs of tiie sunn* book — the Ledger. His Casii Book corresponds to his Cash Account in Ledger j his Bill Book to his Bills Receivable and Bills Payable accounts ; his statement of the cost and proceeds of merchandise to Merchandise Ac- count ; and his statement of incidental expenses to Expense Account. I He will have no difficulty in seeing that if he has the means of ascertaining the present state of alfair^ by two methods so nearly independent of each other as these are, he possesses strong evidence of the accuracy of his books. Nor will he be slow to perceive the advantage arising from being able to com- pare his gross profits with his expenses, so that, if need be, he may either increase the former, or curtail the latter. Now, Double Entry does this in so systematic a manner, and, under proper arrangements, with so little labor additional to that, required in Set III., that we may well wonder that any business ma!i should bi\ii,rudge that little extra labor, in view of the advantages he will thereby secure. BOOK-KKEl'lNQ. and We are now about to introduce the pupil to the more perfect system of Book-keeping by Double Entry. We tru8t he will Htill continue to keep the end he is aiming at in view. If he does so, and pursuea his work in a philo8(»phic spirit, we have no doubt he will be able to endorse the words of Jackson, an old author of a very excellent work on tliis sub- ject :— '* It is a science whose principles are so simple and solid ; its conclusions so natural, evident and certain ; and the sym- metry of its several parts so complete and harmonious, that, the very speculation is no less pleasing than the practice is proJUahU," CHAPTEK VIL BUSINESS FORMS, An acquaintance with the forms of business papers in gene- ral use is indispensable to every one who would master the Science of Accounts. Not only should their nature and use be fully understood, but the ability to make them out readily and correctly should be acquired. For this reason the pupil should study and copy the following Forms, which are among those, most used, until he can write them out readily without referring to the book. ►w. nder that ■iness the RECEIPTS. A Ileceipt is an acknowledgment in writing of having received a certain sum of money, or other valuable consideration. When a payment has been made, a receipt should be taken as proof of the payment. It may not in all cases bu necessary, but when important interests are involved, nothing should be left to uncertainty, if it can so easily be avoided. A Ileceipt often saves inisunderstandingti and loss of friends, as well as loss of money. Receipts should be carefully preserved, as many instances have occurred in which claims have been presented after they were paid. When not written in a book specially prepared for the purpose, thoy should be kept in a place of security, so that they may be readily produced if needed. 91 ii! ROOK-KKEIMNG. I! RECBIl'T FOR PAYiMhNT ON ACCOUNT. • •, i Toronto, Out., Jan. lsf„ ifi77. Received fioiii W. H. Yourex Fifty Dollars on account. $50. E. SCARLF/n\ UBCKIPI" IN FULl- OF ACCOUNT. Belleville, .Tan. 1st, 1877. Received from \V. R. Ross Seventy-five Dollars in fiill of account to date. CUAS. A Dm. i375. RKV'F.U'T IN FUr.r, OF Al.r, nr.MANDS. Napaneo, Jan. 1st, 1877. Received from Hcui^ Iros. One Hundred and Fifty Dollars in full of ill! (lomaudu. S15U. .;. A. FIUSER IlECKIPT FOR A PAKTICUI,AR BILL. Kingston, Dec. 1st, 187^. Received from Boatty A' Wallbridge Five Hundred Dollars, in paymouc for a bill of i^roccriya of this date. J. CABRUTHKRS. RECEIPT FOR BOKROWKD MONEY (vK BORROW Kl) MONEY DUK BILL). i'ictoii, Jan. 1st, 1877. Borrowed and received from .John S. Miller Foiu" Hundred and Fiftv Dollars, which 1 promise to pay on demand, with interest. $450. . B. BORROW. RKCRIPT FOR SKRVKMW. Fiamilton, Dec. 1st, 1876. Received from Geo. W^allbridge Forty-seven fJollars, in full for services to date. U7. 0. PAYMAN. UKCEIIT FOR A NOTE. Loudon, Dec. 4th, 187G. Received from f. V>. Asliley his note <>f tliis dnte, at fcmr months, for Five FInndred Dollars, in full of account rendered to Ist inst. $500. a. a HOLTON (k CO^ y2 1st,, 1.S77. RLEfl\ !sf,, 1877. 1 of account . A DIN. 1st, 1877. L-'Ilars in full UiASER. 1st, 187(5. Dollars, in THKRS. )UK bill). St, 1877. r.dved and Interest. ^RROW. 3t, 1876. |in full for VMAN. I, 187C. [r months, 1 8t inst. DOOK-KKKPINfJ. Ui;i;Kli"I' KOIt KliNT. Monlrnal, Dec. Ist, 1870. Iveceived from P. 0. West A. Co., Oiio Hundred and Twenty Dol- lars, in full for one quarter's nait of store No. 90 Mdiill Street ; dut^ 20th ult. $120. . K HARRISON. imrvAvr kou intkkkst due on mouhjaoe. 'J'oronto, Dec. 5th, 1876. Received from liobcrt Sniitii 'J'wenty nine yq^ Dollars, in full for six months' interest due this day, on his nioitguLfe to me, bearing date Dec. Gth, 1873, for FivM Hundred and Ninety Dollars. ^29tVo. *S."g\ BEATTY. IIBOKIPT FOk J'AYMBNT BY TIIK JiANJ) OF A XiJIKD I'AUTV. Halifax, Jan. Ist, 1877. ileceived from .lohri Jones, by the hand of R. Howe, Fifty Dol- lars, in fnll of his account. WM. R. DEAN. INDOICSEMKNT OF A TAKTlAL PAYMKNT ON A NOTK. B(»wmnnville, Jan. l.st, 1877. Received on account of the within note, Forty-five Dollars. 845. J. 8. MlLLER. AOENT S KKCEIPT. Brantford, Sept. 1st, 1870. Received from M, L. Perkins, Two Hundred Dollars, to apply on his account with C. P. Stanwood. $200. A. L. If WARD, Agent. BILLS AND INVOICES. A Bill of Goods is a written description of the quantity and price of goods sold, with the time or date of the transacticm, and the names of the purchaser and seller. An Invoice is a full account of merchandise, in which the marks, numbers, contents, and value of each package, together with all charges, are described. When anything is purchased w. ."itli Aug. , 1S7fi. [nvnice of one Puckat^o, marked ami nuuilxncil as per njaritin, nliipped as \n^r IfihcinltUL S. S. Iniui (riasijino, t'»ir and on account of MesisrH. G. (J. lloUoa, '' 6U, 54 " All Wool Tartan, " Clan Serge, 3^' A- A. '^^ 24() ; 1()J| 17 :i 4i 8 9^ i: H. d. ! £ 8. d. 5 14 j 7 8 10^1! I i:^ 8 ij 4 a 6 l'3i^||^3 7 2 1| " Super " \ j Box and Cartage 42 \ 1(W 2 19 " 15 I £63 5 I 0K1>EHS. An Ord<'r is a written request to deliver or pay goods or money on account of the [)er8on signing the reqne.«^t. The signature is a voucher that the signer gave the order, and that ho is responsible for the payment of what is ordered. When an Order is received and accepted, an entry sliould be made charging the signer ; and if the Order is for the benefit of a third party, it Ih well to mention in the entry the name of the person to whom the goods or money is delivered. The Oi der .should be kept until settlement is made, as it is a confirmation of the charge. I r! ouni'-K )Hi\\ a( oi's. Mondeal, Jan. Ie% 1877. Messr-i!. I'age, West iV Co. Oentlemen, — Please deliver to A. L. Cathcart, or Bearer, Fifty- seven Dollars, in goods from your store, and chatge to the afcount of U. 0. SANDEim. . 96 KonK KKKPIN(J. >-i'> 2^8. money :e is a insible bceived and if Ition in |)ney is idc, as ^77. iFifty- ]*ci>unt IRS. \ OIll'KIl KOK MoNKy. Toronto, Jan. 2nd, 1877. Mr. W. J. Gage. Please pay to A. H. Jones, f»r Order, One Hundred and Ton Dollars, and charge the same to my account. $110. FETEii aoorhUi. DUE HILLS. A Due Bill is a writtfn acknowledgment of a debt. When it is intended that a Due Bill should he paid at a definite time in the future, the date of payment should be specified. DUli BILL F(Ul MONKY. Hamilton, Jan. 9th, 1877. Due Samuel Clare, for value received, One Huiidred Dollars. $100. CEO. H. CAMP. DUE BIJ,L FOK OOODS. Kingston, Jan. 3rd, 1877. Due Sanford Farmer, Twenty Dollars in goods from (mr store. $20. ' ROSS db lUIN. PROMISSORY NOTES. A J'romiftsotij Note is a ivrittm prow'ise. to pay xw'ArmUfunialbj, a/ttd^ at all eve'nts, o spedjied sum of money. When u Note is givert or rectivc'l, it should bo entered in the person's account with whom the tr.insiictiou occurs, in the sanu; manner as cash would be entered. Tiio Note settles so much of the account, and may change hands many tinics before it becomes due, and it must V)e paid to the holder. Should suit be brought because not paid, it vvo\ild be brought upon the note instead of upon the account. FORMS OF NOTES. NEGOTl \1{LL: VVITHOL"!' IN DOUSKMKNT. London, Oct. 8th, 1876. $100. Three months after date I promise to [Kiy S. G. Beatty, or Bearer, One Flundred Dollars, value received. THOMAS U'lr.TJAMS. a 97 ' .^ 1100. ^ HOOK-KEKPINa. NEOOTlAliLK BY INDORSKMENT. Hamilton, Oct. 28th, 1S76.^ 'J'liree monllis after date I promise to pay S. Clare, or Order, One Hundred Duilai«, value received. THOMAS WILLIAMS. $100. NON-NKUUTIABLK. Toronto, Oct. 28th, 1876. Three months aft«r date I promise to pay George Dean One hundred Dollars, value received. THOMAS WILLIAMS. 1^ $100. \ PAYABLK ON U KM AND. Kijigston, Oct. 28th, 1876. On demand T promise to pay Messrs. Jones xll for services. A Receipt for a note. A Re- ceipt for rent. For interest due on a mortc^age. For payment by the hand of a tliird j>arty. What is a Bill of Goods ? What is an Invoice ? Of what use is a Bill of Goods ? How are Invoices usually preserved ? Write a Non-receipted Bill of Goods. A Receipted Bill. A Bill paid by Note. What is an Order ? Of what is it a voucher ? Give the form of an Order for Goods for another person. An Order for Money. An Order for Goods for yourself. What is a Due Bill ? Write a Due Bill payable in money. A Due Bill payable in Goods. What is a Pro- missory Note ? What should be done when a Note is given or received "i In what book is a full description of Notes entered ? Give the form of a Note negotiable without indorsement. A Note negotiable by indorse- ment. A non-negotiable Note. A Note payable on demand. Payable at bank. A Joint Note. A Joint and Several Note. What is a Draft ? When are IDrafts made payable ? When made payable at sight, or a certain time after sight, what should be done to fix the date of pay- ment ? How is a Draft accepted ? Give an example. What should also be written if the Draft is drawn payable at sight or after sight ? Give the form of a Sight Draft. A Time Draft. A Draft where time ia reckoned after sight. 100 n '■•If'' ■■ 1-'^., ■.■■ - ■it''*- > PART II. DOUBLE ENTRY. / / ' J 1)()UP>I-K ILNTKY. INTIU) DUCT ION. \ <• A COMPLKTR set of necuiiiits, as the pupil is alrejidy avvart;, bliuuld t'unii.sli tho iucmiks ot" rcinlily (Unt'nniiuii!^ — i. The Present Financial Position, hy showing the present Ati.sets ami Liahiiitii\s. 11. How this position has been attained, by showing the Original Capital and the subsequent Gainb and Losses. As the result in the latter case must be the same as in the former, tlie proldein lor the pupil nuiy be thus stated: — ** Given, the Jbiancial condition of a business at the beginning of a certain period, the tnlnsactious during the ])eri<)d, and the vahie of the fji'ods remaining at the end ; it is required to record and classify these various items, so as to exhihit the financial condition at the end. First, from a statement of Assets and Liabilities at that time ; second, from a statement of the Gains and Losaes, in connec- tion %vith the Original Capital." He has seen that the ISingle Entry Ledger contains only personal accounts, and that, even with the aid of the Cash Book and Bill Book, it is not competent to do more than comply with the first requirement. It is, therefore, as a system, irriperfed. He has also seen that Double Entry supplies the defect of Single Entry, by keeping accounts not only with the jjersons witli whom business is transacted, but also with every form of value ejxhanfjed, and with everji so-itrce of receipt and expenditure. It thus shows, in addition to all that ISingle Entry does (even with the aids above mentioned), the various channels through which the gains and hjsses have been made ; thereby afford- ing, not only presumptive evidence of the correctncoS of the \vt)rk. but also a basis nijon whicii to plan future enterprises. Double Entry, therefore, meets both requirements, and consequently rec(nnniends itseli" as a perfect system Of Account Keeping. Such a ])robleni as the one just statetl the pui>il has alrea tlic Day Book, Journal and Lodger, 'riui.-'d arc conunimly called priiu-ipal l)()(»kH. in relation to «ttli(M:<, eallctl uuxiliniff 1uh>Iusiness transactions should be recorded at the timt! and in the order in which they occur. Every entry shouhl embrace the following particulars : — 1st, the date ; 2nd, the person or account ; 3rd, what you have bought or sold, paid or received ; 4th, the terms of paynjent ; 5th, the articles, quantities, prices and amounts. [u writing this boelc, tiverything should be clearly expressed in as unitonii a styh^ as possible, and the use of ambiguous words ami phrases carefully avoided. JUUKNAL. The purpose of the Journal is to state, with regard to every Day Book entry, whi^accounts in the Ledger are to receive entries, on Avhich side of the account, and for how much ; so that the posting to the Ledger may be rendered more easy, and less liable to error. In journalizing any Day Book entry, therefore, the three questions to be decided upon are — Which accounts are affected ] On wliich side? and, For what amount'? If the pupil has mastered the two chapters on Exam)>les of Accounts, pages 12 to [\0, he will iuive little, if any, difficulty, [f he has not mas- tered them, he will do well to read them again very carefully. In any given set of trausactiotus, l)efore applying the above questions, we must settle upon the names of the accounts we intend to open, l^'or instance, in the First Set we are dealing 104 , ' ■ . HOOK KKKIMNd. in two kin«la of Wheat ;iiif Wheat; or to havo four accoriiits. one for each kind of Hour and one for eiu.h kind of wheat. In this Set the .second course is adopted. A little icrtecLiou will poiur to the account.s afTecled. We shall he directed to the side alTected l>v asleisoiuil one,- - " Did, we rereivf (he thiutj or lart with it?" With regard to those iuipersoMul ones which show loss or gain, as Merchandise, and especially Interest and KxptMise, the question, " Did the thing cost >is voluc or pi'odvre, us vohw ? " iiuiy indicate more clearly to sonic, minds the side affected. The pupil will observe, however, that this is only a modified form of the previous question. For the thinij which has coot us value must have been rectuved, and that whicli has produced us value must have been parted with. In the entry, January 2, "Sold James Rimmer, Wlieat on account, $150," it is evident that the two accounts aflfected are James liinimer and IVJicat. As h(^ is the rf.ceiver, his account must be debited : and as wheat has b(>en jjurted with, Wheat account must be a edited. This may be indicated in the Jour- nal in several ways, for example : — James Rimmer, Dr. 150 00 Wheat, Cr. 150 00 Or. James Rimmer, Dr. 150 00 To Wheat 150 00 Or, ■ James Rimmer 150 00 1 Wheat 1 150 00 iling There are several other ways of indicating in the Journal what are to be the Ledger entries, but whichever is ado))ted, they all mean simply that $150 is to be enteied on the debit side of James Rimmer's account, and the same amount on the credit side of Wheat account. In the entry of the same date, " Bought of Wm. Lingham, Flour, for Cash, $300," the acromits affected are Flour and 105 B(X)K-KKEPINa K (: 1: ;i< M Cash ; Flour on tin* rlehit side because it came hi, Cash on tlie crrdif side because it vent mil. Win. Lingiiain's account is not iiffcrU'd, bt'cause his relatiou to us as l)i". or Cr. is not chan^^ed by the transaction ; and, thtrefore, we need not make jriy' entry in his account. We may ; but if we (h), we shall have to credit him with the Flour he h.;s dehvered to us, and then debit him with the Cnsh he has received from us. And tliese two entries, being equal in amount, would have the same eflfect uprui the account as if no entry had been made. 'J\co accowits at least will generally be affected in any trans- action. There may be more. In the opening entry, January \»t,foiir accoujits are affected — Cash, Flour and Wheat on the Dr. side, because all these came into the business ; and the proprietor's account on the Cr. side, because he put them, into the business. Adopting the second mode of Jt»urnal entry, and using the term Stock to represent the proprietor, instead of using his own name, the proper Ledger entries will be thus indicated : — j Cash Flour Wheat Dr. To Stock 4000 1000 3000 50 00 00 8000 50 We have ado!)ted, for \\\v, present, the second mode -of jour- nalizing, for a i'ejvson which will be better a])j)reciated when we speak oftlie Ledger. We must, however, caution the pupil against attaching to the woni " To,"' in the expression "James Kininier, Dr. to Wheat." the meaning whicli, from the ordinary use of language;, would naturally sueen our giving to Charles Adin our order or draft upon Benjamin ion /r 1 on tlie it is not ake ir.iy all have nd then 1(1 tliese Qie eflfect ly trans- Jatiuary it on the and the f/tcm into al entry, r, instead be thus 8000 50 -of joiir- ed when the pupil '* James ordinary i>e ])lain, hoat. If Benjiimin is Dr. in elation to elation of with the two per- attach to ■e circuin- Iwen our Benjamin . ' . BOOK-KCKPING. Wortl)) would actually make lieiijamir IForfh the Dr. of Charles A din. The pupil cannot fail to have observed that his nbility to journalize any transaction must «lepend entirely up(.u his know- ing what entries should be made in the Ledger, and this depends upon his havijig a clear idea of the nature of the different Ledger accounts. The name of this book. Journal, is not suggestive of its use. From ";o?/,?-," Fieuch for f/a?/, it is synonymous with Day Book, and was appropiiate when it was the practice in the Journal not merely to indicate the proper Ledger entries, but to add the full details ot the transactions from the book ot miginal entry, then called the Waste Book. LKlXJlsU. The Ledger is the book in which the transactions, scattered through the Day Book witliout order as to kind, are arranged under distinct and appropriate heads, called accounts. The amount put into the business by the proprietor, or taken out by him, is p// under His own Name, or under the name oi Stock, or Capital ; every item afiecting the debit or credit, on account, of any particular person towards us \^ placed unrler that person's name ; all receipts and payments of cash, under the head of Cash ; others' notes received and disposed oj, under the head of Bills Receivable ; our notes issued anrl redeemed, under the head of Bills Payable; purchjises and sales, under Merchandise ; and incidental outlay, uned oidy transfer the amount to the Ledger, with a word or two to explain the entry ; and the transferring or p.stivfi to it can be done at leisure. The original entries l>eing made in the Day Book, they may he trai\sferred to the Ledger without the aid of the Journal ; and in modern practice, where the original entries are so made 107 BOOK-KKKPINO. i. that the purchases, 8ale8, cash receipts and payments, are kept separate from one another, it is unnecessary. Its introduction, however, into the preliminary sets, will more deeply impress upon the mind of the pupil the privriple of equal dahits and credits ; and when it is formally dispensed with he will more slearly see that its c.ssenr.e is retained in the peculiar mode of makinsi the original entries. Namks and Okdeh of the Accounts.— The pupil need scarcely be told that the Journal contains the names of all the accounts that are to be opened in the Ledger. Although in practice it is usual to give a page to each account, we will apportion to each, only so much space as is necessary. In text- books geneially no definite order is observed, but as advantage may result from attention to this matter, we will take hrst. Stock ; after that, all the accounts which show an asset or a liability, beginning with the most available asset ; and lastly, those sho'ving a loss or a gain. We shall thus have the accounts of the First Set in the fallowing order, namely : — Stock, Cash, Bills Receivable, Bills Payai)le, Personal Accounts, Flour, Wheat, P^xpense. The headings should be written in a clear text-hand, and the abbreviations, Dr. and Cr., may be placed at the top of the page only. Posting. — Transferring an entry from any book to the Ledger is term^A jtosting, the word '^jwst" as a verb, meaning simply to put, to place. If the posting be done direct from the Day Book, it is an intelle.ctnal operation, because for each separ- ate Day Book entry we have to think Avhicli account, and which side of it, is atf«!Ct( d. But all the thinking has V»een done in journalizing, and the results are so registered in the Journal, that ])osting from it is reduced to n n»ere mechanical operation. The first Jou'-nal entry is a plain diicction that Cash, Flour and Wheat are to l)e debited respectively with the amount placed opposite to them, and that Stock is to be credited with the amount placed opposite to it. Thus : — ^„ i I Dit. Cash. Cr. 1877 I Jan. , 1 To Stock 4000 50 108 )t PR . ■ 1X)0K- KEEPING. Fl.OUR. Cr. 1877 i 1 1 Jan. IjTo Stock j | i i • ■ t 1 il 3000 00 1 Dk. Wheat. Cr. 1877 Jan. liTo Stock ! 1 000 00 i 1 1 1 1 i 1 1 Dr. Stock. Cr i i 1 i 1 1877 Jan. I By Sun- dries jsooo 1 50 Tfjsteail of the word " Sundries,''' we could, if we had cliosen, have written '* Cash, Flour and Wheat.'" But it is usual, when there is more than one account to name, to write " Sundries," meaning several accounts. 'Die narrow column to the left of the money column in the Ledger is for the Journal page. As soon as ea(;h Ledger entry is made, the page of the Ledger should also be put in the second coluum of the Journal. This shows that the item is posted, and also the page of the Ledger on which the account is found. Although ill the Journal entries we have named the deV)it account first, we are at perfect liberty to name the credit account firj>t. We can say — Flour Dr. to Cash, or, . ^ Casli Cr. by Flour. So far as i\\Q fact is concerned which originated the entry, they both mean that Flour came in and Cash xcent out. So far as the operation to he performed in the Ledger is concerned, they both direct that ITiour Account is to be debited, and Cash Account credited. Reading the Ledger entries by giving ihe name of the account first with Dr. or Cr., according as the entry is a debit or credit one. the pupil will oUserve thai every debit entry v)iH read like the Jou/rmd, word I'or word, and every credit entry will read as the Journal would read if written with the credit account iirst. IJOOK-KI.EIMXG. \:et t.— double entry. The following; Set is worked out in full, in order to show the j)upil the proper torin of carrvin^i^ the tninsaoiioiis through the diliVrent l)ot)ks, and should he thiuougldy undciaLood in every particular before proceeding further. The transactions are first taken from the " Record," (which is supposed to be a memorandum of the merchant's business transactions in the date and order of their occurrence,) and arranged properly in the Day Book, after which they are jour- nalized and postetl. A faithful adherence to the foregoing instructions and illus- trations will enable the pupil to record, readily and correctly, the following exercise, which should be first written on Skeleton paper prepared for that purpose, or ou blank paper ruled up by ihe student himself. SET I.— PRODUCE BUSINESS. \ It is expected that the student will not merely copy the exercises in connection with this Set, but that he will work thuui out for himself according to the forms given. RECORD UF TRANSACTIONS. ' Toronto, January 1, 1877. Commenced business, investing as follows : — Cash - $4000 50 500 bbls. Extra Flour, at «6 - - - 3000 00 800 bush. Fall Wheat, at $1.25 - - - 1000 00 Jan. 2. Bought of W. Linghara, for cash, 60 bbls. Superfine Flour, at $6 - - - - 300 00 " Sold James liimmer, on acc't, 100 bush. Fall Wheat, at $1.50 - - - - - 150 00 " Bought of H. Corby, on my note, 200 bush. Spring Wheat, at $1 - - - - ^200 CO '** 3. Sold Robert Thompson, on acc't, 400 bush. Fall Wheat, at $1.50 - - - - GOO 00 " Bought of W Lingham, on my note, 100 4 bbls. Superfine Flour, at $6.50- - - 650 00 ** Bought of James Wilson, for cash, 200 bush. Fall Wheat, at $1.50 - - - - 300 00 " 4. Sold John Smith, for his note, 100 bush. FainVheat, at $1.75 - - - - 175 00 110 0 1300 00 " ii_So!(lforcash, lOObush. Sp'gWheat,at$1.25 125 00 " 8. SolcTJameFrtti-mnier, on acc't, 200 bunh. Fall Wheat, at$l 40 - - - - - 280 00 " •* Received of James Miller, his note in full of acc't 1300 00 " 0. Paid cash for sundry items of expense - 25 50 " " Sold Robert Thompson, on acc't, 250 busli. Fall Wheat, at $1.50 - - - - 275 00 " 10. Bought of W. Lingham, on acc't, 450 bush. Spring Wheat, at $1 - - - 450 00 " " Pai.l H. Corbv, cash on acc't - - - 1000 00 " 1 1. Sold Robert Brown, 200 bush. Spring Wheat, at $1.25 2.')0 00 100 hush. Fall Wheat, at $1.30 - - - [30 00 Received iji payment, his note for $150, cash for balance, $230. " 12. B >ught of W. Lingham. on my note, 50 bbls. Extra Flour, at $6.30 - " - - - ol6 00 ** ** Paid cash for my note of the 3rd inst., favor of W. Lingham - - - . • 650 00 " 13. Sold J. Rimmer, on acc't, 200 bbls. Extra Flour, at $7 1400 00 " 15, Paid cash in full for my note, favor H. Corby 200 00 '■ " Received of R. Thoni])S()n, cash in full of acc't 975 00 " " Received cash, in full for J. Smith's note of the 4th inst. 175 00 " " 10. Gave H. Corby my note on acc't - - 1000 00 " 17. Bought of W. Lingham, on acct, 550 bush. SpVing Wheat, at $1 - - • - 550 00 ** " Sold J. Rimmer, on acc't, 150 bbls. Super- % fine Flour, at $S 1200 00 ** ** Received cash, in full for J. John.son's note of the 5th inst. 120 00 " l!5. Paid sundry expenses in cash - • - 140 00 111 r / y k ' % HOOK-KEKPING. INVKiNTORY OF liOODS REMAINING UNSOLD. GOO bbls. Extia Flour, at $G.00 50 " *♦ 6.30 200 busli. Fall Wheat, 1.25 50 " " 1.40 SOO " Si)riijg Wheat, 1.00 $3noo 315 00 00 250 70 800 00 00 00 3915 00 1120 00 SPECLMEN DAY BOOK. i ? TO THE PUPIL. After becoming familiar with the preceding instructions, you may write up the Day J^ook according to the following form, then lay aside the printed book, and on a sheet of waste paper journalize the entries of the Day Book, after which compare with the printed Jouinal to see if you have journalized cor- lectly , then post to the Ledger as directed in explanations on postinjf, independent of the printed book, and make out your Trial Balance and Statements. , .- The check mark (v') is to show that the entry to which it is placed is journalized. It should be made immediately after journalizing- ?ierer ie/om Toronto, January 1st, 1877. (1) tExtrii Fall. >/ * — ■ — this day commences the Produce Business at No. 128 Front Street, renting store from F. John- son, and in- ..; " ,'».s follows : — Cash 500 boi^ ^i'>^r $6 00 800 busn. Whtjiit 1 25 Amount forward 4000 3000 50 00 1000,00 8000 50 8000 50 • Pupil to use his ownti name. t Tlie margin to the left is for the description or mark of the articles, it order that lliey may he readily referred to. 112 ,1 BOOK-KKEPINQ. (2) Toronto, January 2, 1877. :i) 150 |50 \\ Super. Fall. > C Sprin<^ Fall. Super. Fall. Fall. Fall. Spring. Extra. Extra. x/ v/ x/ x/' n/ v/ >/ x/ x/ x/ Cariied over j i3ouglit of W. Liugharn for cash, , 50 bbLs. Flour $6 00; Sold James Rimtuer on acc't, 100 l.usli. Wheat $1 50 P»ouglit of U. C(jrl>y on my note, 200 l)ush. Wheat $1 00 a Sold Robert Thonipsion on acc't, -loo bush. Wheat $1 50 Bouirlitof W.Lin^ham, onmyn^^ct 100 bbls. Flour $6 50 Bou.'^ht of James Wilson for cash, 200 bush. Wlu-at $1 50 4 Sold John Smith for his liOte, 100 bush. W^heat $1 75 Received of J as. Riinmer on acc't, Cash Bought for cash, 400 bush. Wheat $1 40 Sold James Johnson for his note, 100 bush. Wheat 6 — $1 20 Bought of H. Corby on acc't, 500 bbls. Flour $( 00 Sold James Miller on acc't, 200 bbls. Flour .50 n Amount forward 118 ll 8000 50 00 300 150 200 600 650 00 00 00 00 300 175 100 560 120 3000 i "i 1000 I |! 15455 00 00 00 00 00 OG 0( /^ COOK-KEEPINU. Toronto, January 6, 1877. (3) Spr J5pnng. Fall. ' < Fall Spring. Spring. Fall. >/ J J J Carried over Sold for cash, 100 bush. Wlieat 61 25 Extra. Extra. Sold James liiinmor (jn acc't, 200 l)nsh. Wheat $1 40 Received of James Miller his note in full of account 9 Paid casli for sundry expenses (( Sold Robert Tiiompson on acc't, 250 bush. Wheat $1 50 » 10 Bought of W. Liniiiluim on acc't, 450 bush. Wheat $1 00 Paid H. Corby cash on aco't 11 Sold RoV)ert Blown 200 bush. Wheat $1 25 100 " *' 1 30 Rec'd in ))ayraent his note, $150 Cash for the balance, 230 12 Bought of W. Lingham, on my note, 50 bbls. Flour $6 30 Paid casli for my note of 3rd mst. ■lo- Sold J. Rimmer on acc't, 200 bbls. Flour $7 00 1 5 Paid cash in tidl tor my note favor H. Corby Amount forward 114 250 130 00! 001 15455(50 ^ 125 00 i 280 00 1300 00 2550 375 00 450 00 1000 00 ,. 380 00 315 650 1400 200 2195G0 00 00 00 00 00 00 00 00 ) 00 (*) BlX)K-Ki!:ii;PlNTJ, Toronto, January 15, 1877. Super. J Carrierl over Received of K. Thompson, cash in full of acc't Received cash in full for John Smith's note of the 4Lh inst, 16 Gave H. Corby my note on acc't (( Bouirht of W. Lingham on acc't, 550 bush. Wheat $1 00 Sold James Kiramer on acc't, 150 bbls. Flour $8 00 « Received cash in full for J. John son's note of the 5th inst. 18 Paid cash for sundry expenses « *Inventory of ^oods unsold : j 600 bbls. Extra Flour, at $6 00 - - - $3600 50 bbls. Extra Flour, at $6 30 . - - 315 200 bush. Fall Whea^ at $1 25 - - - 250 . 50 bush. Fall Wheat, at $1 40 - - 70 800 bush. Spring Wheat, at $1 00 - . - 800; 21956 975 175 1000 550 1200 120 110 3915 00 1120 00 20116 00 00 00 00 00 00 00 oc 00 * Although it 18 common to value the goods on hand at their coat price, tiking off, i? necessary, a per centage for bad stock or de]n'eciation in value, it; wmild be more correct to reckon them at what they can be Lout/ht for at ffie time of valuation. 115 BOOK-KEJjlKDiO. ) t / SPECIMEN JOURNAL. Somo Imsiness men require their Journal to embody brief* explariittions of tlieir trjui8;icti(»ns ; but we do not intro 2 2 1 1 3 1 Carri 1 Vn. \ wid LoM, 11 any. / toiUl/H. ^ Uaii..if»»y. } ^* J877 1 I i877 ' ;.lan. 1 By Sundries 1 8000 5C I 1 20 .^ 1 (Re.*lwd) CASH. (iWd out.) Jan. 1 To Stock 1 ! 1 400050; Jan. 2 By Flour 1 300 OC «< 4 " J. l^inuner 2 lOOOOl 3 " Wheat 1 300 00 1 H '' Wheat ' 2 igsloo. 5 (( (( 2 560 00 tt 11 (( u ^ 230,00, 9 " Expense 2 25 50 • « 15 " Ji. Thomp- 10 •' H., Corby 3 1000 00 SO)l :i 975 00| 12 '' BiUsPay. 3 650 00 .« ( ( " Bills Kec. 3 175,00, 15 li , t( 3 200 00 tt 17 1 i( *i 3 120f00 18 " Expense I 3 14000 /Uthara' Mut«a\ HTT T Q DTTT'TTl A7 A l^T W /Othoni' Noteii disposed \ V rocelTed. / DlLiLib KHiCJLl V AliljJfi. { of or CoUectBd. ' Jan. 4 To Wheat 2 175 1 00 Jan. 15 ByCa«h 3 17500 t^ 6 H (< 2 120 00 t( 17 a << 3 120 00 H 8 " J. MUler 2 1300 00 ! 4( 11 " Wheat 3 150 00 ( Mr Kot^ \ BILLS PAYA35LE. /Mr Note8\ \ fsiueU. / Jan. 12 To Cash 3 65000 Jan. 2 By Wheat 1 200 00 tt 15 H it 3 200 (X) i " 3 *' Flour 1 650 00 (( 12, " " 3 315 00 k( 16 " H. Corby 3 1000 00 120 ' V (1> 8000 5C 300 . 300 ! 560 I 25 J 1000 \ 650 J '200 140 00 00 50 00 00 00 00 tecL ' 175 00 12000 200 650 315 1000 00 00 00 00 (2) BOOK-KREPING. Dr. /My Acc«uxil\ vapilnithlin./ JAMES RIMMER (SLnr«:*) Cr. 1877 1 1877 t Jan. 2 To Wheat 1 150'00 Jan. 4 By Cash 2 lodoo (( 8 <( n 2 28000 << 13 " Flour ^i 140000 ; ! >( 17 << (( 3; 1 1200100 1 1 W. LINGHAM. /HU Accoiint\ VH^aiiiat mi./ Jan 10 By Wheat 17 " " 45000 55000 / My Account \ V against him./ ROBERT THOMPSON. /RiaAoeonntX \ against m*. / Jan. 3 9 To Wheat (( it 1 2 600 375 00 00 1 Jan. 15 By Caah 3 i 9750 ' 1 1 ! 1 /My Account \ \aKaiu8t him. / H. CORBY. /Hlfl Account \agaiiist ine. '.*) Jan. 10 " 116 To Cash " Bills Pay, 3 lOOO'OOiJan, 100000 6 By Flour 300000 /My Aecount\ VaKaiusthlia./ JAMES MILLER. /His Aocount\ \«ff»liiat ni«./ Jan. 6 To Flonr 130000 Jan. 8 By Billi Kec. 1300 00 (Coiit. ) FLOUR. ( Proceeds. ) Fan. 1 i( 2 (C o o u 6 '« 12 1 ITo Stock " Cash " Bills Pay. " H. Corby '* Bills Pay. i ! 1 1 300000; Jan. 6 1 300 OOi (( 13 1 05000} (< 17 2 3000 00 3 31500 1 By J. Miller 12 130000 J. Rimmer 3 140000 " 1 3 '120000 121 ^■*t*• i ■^, Dr. (o«»*-) JJOOK-KEEriNG. WHEAT. (Proceed..) (8) Cr. 1877 111877 i 1 Jan. 1 To Stock 1: 1000,00; Jan. 2;ByJ. Ritntner 1 15000 (( ♦2 " Bills Pay. 1 |] 200 OOi! " 3" R. Thonip- 1 ' t( a " Cash 1 1 300 OOji son 1 60000 (( 5 It u 2' 5()000! " 4 *' Bills Roc. 2 17500 t< 10 " W.Liiigham 2, 450,00 << 5 it, (( 2 12000 It 17 u <« 3 55000, tt '* Cash 2 12500 u 8 " J. Riminer 2 28000 ' 1 <( 9 " R. Thomp- son 1 i 2 37500 (( 11 " Sundries 31 38000 /Otitliiy for\ \ Kxpenie- / EXPENSE. Jan. it IsIto Cash 3, 3j ! 1 2550! 14000 TEST OF TEIE l.EDGER. The first thing to be done, after the transactions of a set have been posted, is to test the correctness of your work, by comparing the amounts of the two sides of the Ledger, and seeing that the sum of the Dr. side of all the accounts equals the sum of the Cr. side. This is accomplished by making out a TRIAL BALANCE. L.F. Dr. Cr. llstock 1 800050 1 Cash 5725 50 317550 1 Bills Receivablo . - . - 1745 00 295 00 1 Bills Payable 850 00 2]65;00 2 James Rinnuer .... 3030'00 10000 2 W. Lingham - - - - I 1000 00 2 Robert Thoinpr.on - . - - 975 00 975 00 2 H. Corby . . . . - 2000,00 300000 2 James Millor - ... - 1300 00 1300 00 2 Flour 7265 OOi 3900 00 3 Wheat 3060 001 1 220500 3 E.xpenfit 165 50 1 1 26116 00 ' 26116 00 An explanation of the process of taking off a Trial Balance id given on th« next pasre la^i BOOK-KEEPING. TRIAL BALANCE. A Trial Balance is taken to ascertain if the Debits and Credits on the Ledger are equal, or bnlance. As soon as you finish posting all the transactions.to the Led- ger, according to the principle of equal debits and credits, you take oflF a Trial Balance. This is done by first footing the it^ms of the different accounts, placing the amounts in light pencil marks, which should be erased after the completion of the work. The totals of the accounts are carried to the Trial Balance, as per model form, leaving out such accounts as close themselves. By adding to the footings of the Trial Balance given, the footings of accounts that close themselves, you will find that they exactly correspond with those of the Journal, which would not be the case if any of the Journal entries were not posted ; and as the footings of the. Journal columns also tally with those of the Day Book, it is almost conclusive that all the original entries have found their way into the Ledger. There will remain two chances of error in the accounts, viz.: from improper Journal entries, or from posting to the wrong accounts in the Ledger. It will be observed from the foregoing remarks, that the Trial Balance is not always a strict proof of the correctness of the work, though it is so nearly a test, that under ordinary circumstances, it may be considered satisfactory. It is supposed that you have gone through the process of ioumalizing and posting the preceding set, and that your Led- ger accounts present an equilibrium of debits and credits. A Trial Balance may be taken with the difference columns only, or with the amount columns only. The latter is very fre- quently used in business, a form of which is given on page 122. In a real business, a Trial Balance may be taken monthly, and should be taken as often as once in three months, even though the books are closed but once a year. The following is another form of Trial Balance, from the same Ledger. 1600 in on w •jgn PVi^"' .fl.imf • HU," ■ "I BOOK-KKF.PINO. k. 1i 1 TTUAL BALANCE. Dr. BaL 2550.00! 1450001 Dr. Footings. 2930 3305 00! 00 855^00 l(J5i50| 5725 1745 850 3030 2000 72«5 3000 105 11315,50 50' 00 00 00 00 00 00 50 3 00 Stock Cr. Footing*. Cr. BaL' 8000 50 8000 m Casli . - - . 3175 50 13ills Receivable - 295 00 Bills Payable - 2105 00 1315 00 James llimmer - looloo W. Lins^ham 1000 00 1000 00 H. Corby - 3000 00 1000 00 Fl(jur 3900 00 Wheat 2205 00 Expense - . - 23841 00 11315 50 Note.- -The Ledger from which the foregoing Trial Balance wa.s taken does not contain all the results of the business. Hence, in getting at the dalti from which to ascertain the net worth, or the net gain or loss, it will be necessary to go beyonlNa. ■ » ■ "" i«! Jas. Kiinmer, Dr. My A cot. against him - - $3030 00 ** Cr. His Acct. against mo - - 100 00 tt << " Difference, he owes me W. Lingham, Cr. His Acct. against me — I owe him H. Corby, Cr, His Acct. against mo $3000 00 Dr. My " him 2000 00 « ** Differenoe, I owe him Fresent Net Wo^'lh - - - Henources. 2930 00 .:M5 00 I LiatbllitiM. 1000 1000 8G50 11965 00 00 00 00 2. STATEMENT OF LOSSES Al^xJ GaV!nG!, ! For the purpose of ascertaining the Net Gain or Loss, i" Flour, unsold, per Inventory - $3915 00 LoHses. 1 1 Gains. * * Cr. or proceeds from sales - 3900 00 165 649 60 50 550 265 ** Total proceeds - - - 7815 00, " Dr. or cost- - - - 7205 00 ** Difference or gain . . . - Wheat, unsold, per inventory - 1120 001 . ' ' Cr. or proceeds from sales- 2206 00 00 " Total proceeds - - - 3325 00 Dr. or cost - - - 30C0 00 ** Difference or gain - . - Expense, Dr. or outlay, a loss Dijfereiice between Gains and LosscSf or Net Gain 00 Proprietor's TTet Investment - - $8000 60 " Net Gain - - - 649 50^ 815 00 816 00 •* Present Net Wwth - $8650 00 12W BOOK -KEEP [NO. Tho following arrangement also is recommended to the pupil for practice, as it approaches very nearly to the form observed in closing the Ledger accounts, and will, therefore, servo to prepare him for that work. 3. ASSETS AND LIABILITIES, 1 Flour on hatid Wheat " Cash " Bills Rec. " James Ri mnier owea me . . 3915 1120 2660 1450 2930 00 00 00 00! 00 Bills Payable (outstandinR) I owe W. Linghara •♦ U.Corby yet Worth «i •• I IDln' 1000 icoo 00 00 00 00 00 00 3315 8650 11965 11965 4. LOSS AND GAIN. Expense Net Gain 165 649 815 50 50 00 Gain on Flour Wheat 650 266 00 00 816 00 • 6. STOCK. • Jfet Worlk S650 00 00 Investment Net Gain 8000 64i) 50 50 8660 b650 00 The pupil will test his familiarity with the foregoing in- structions by rendering analyses or statements of Losses antP Gains, and of Resources and Liabilities, trom the tollowini^ exercises. He will do well to arrange them according to lorms 1 and 2, and also according to forms 3, 4 and 5. The latter method will specially prepare him for closing the Ledger. If properly worked out the result will be as given imme* diately after each Trial Balance. .&«7 I : I ' BOOK-KEEPINO. 6. TRIAL BALANCE. Dr. Bal. Dr. Foot .'.. 1 Cr. Foofgrs. 1 Cr. B»I. 150 00 St()ck 7500 1 1 OOi •' 7359 00 1044 27 4170 17' 2 iWdso (unsold |2000) - 3125 00 1532 17 5750 OC)' 3 Cash - - - - 4218 12 500 00 500 00 4 Robert Baker - Real Estate (unsold 6085 00 7000 001 $0900)* - 315 00 1000 00 1500 001 Bills Receivable 500 00 400 00] 7 Bills Payable - 1200 00 800 00 79 25 154 25 8 doo. Ritchie & Co. - 75 00 1001 00 1200,00 9 Warner Bros. - 139 00 375 00 37500 10 Expense - - - 1400 00 11 N. Jones - - - 2100 00 700 00 12 Hunt & Co. 170 00 170 00 45 00 120 00 113 Interest andDiscountf 75 20 14 W. P. Graham • 3601 69 3601 6I> 300 00 09 300 00 71 15 Loss and Gain - Equilibrium 71 12631 23019 23019 12621 69 Net Capital at commencing, $7350. Net Gain, $450.73. Net Capital at closing, $7800.73. • Real rotate. Railroad Stock, and all speculative property accounts are treated Ilka Merchandise account. t Interest and Discount contains on the Dr. side the cost of the use of mtiney (ranted to up, and on the Or. side what the nse ofmon«y granted to others produnea as vlia dlScicnoo. therelure, shows a loss or gain, as the case may be. 128 BOUK-KKEPINQ. 7. TRIAL BALANCE. r J Dr. Cr. 1 S. G. Beatty (Partner)* . - . . 3000 00 16863 13 2 S Clare (PwrtnerY' 97M2 12000:00 3Caah 10 4719 22 4 Merchandise (Vahin unsold, $5159,50) 7350 00 371950 DlRa'lroacl Stock ( Value unsold, ^12000) 12000 00 6; Bills Receivable 7000 00 5000 00 7|Bill8 Payable ----;- 3180 DO 6180 00 8 Real Ebtate {Value mviold, $8000) 7500!00 i5o;oo 9jRobert8«>n & Henry 1150i')0 920'00 lOJG. C. Holton i as Stock account. An ncvount ia opened for each partner in his own name, and encli one's shar« of the net train e • at loss carried to it. In this instance divide the gain equally. I 1:^9 . FT B 130 BOUlk KKEl'INO. gidered to mean simply " Balance Account." Hence, any entry, closing or otherwise, which is to be tiiinsterred to Balance account will he written *' To " or '' By Bal.mce," and any entry, closing or otherwise, which is to be transtVrri;d to Loss and Gain ac- count will be written " To " or " By Loss and Gain." The pupil should not t"ui>;et that in n<» one thing docH tJae proficiency uf a practical accountant more plainly nianit'ost ilHclf than in the matter of neatnesa in arrangement and execution. He sliould ob»alanc('. Take a Trial Balance of the«e to tost the accuracy of the transfer entrie»<. VI. Cloae Lofcs and Gain into Stock ; and Stock into Balance. V^T. Balance account will now have both Hides equal, and will be cloi»ed by dimply footing, and ruling olT. PARTICULAU DIRECTIONS FOR CL0S1N^> THE LEDGER OF SET L We will now take the pupil through the process of closing the Ledger of Set I., according to the instructions just given. I. Wo first open Loss and Gain account and Balance account. II. We then ascertain from the Inventory (which, for con- venience, we have here put at the end of the Day Book), the value of the goods unsold. The unsold Flour, in this case, is worth $3915, and the unsold Wheat $1120, which amounts we enter on the Or. side of these accounts in red ink, " By Balance, Inventory," and transfer the same immediately to the contrary, or Dr. side, of Balance account, making the entries in black ink, "To Flour, $3915," and "To Wheat, $1120." The accounts are now in a condition to be closed either into Stock, Loss or Gain, or Balance, as the case may be. III. We have not in this set a Private account distinct from the Stock account. IV. We then come to Cash. The dilFerence represents a resource or an asset of cash in harul, $2550. AVe enter this in red ink, on the Cr. side, writing " By Balance," foot up the sides, and draw double red lines underneath. This red ink entry is at once transferred to the Dr. side of Balance account in black ink. Bills Receivable shows an asset, and is closed, like Cash, into Balance account. Billg Payable is also closed into Balance, the difference show- 132 ROOK-KKKPINQ. ing a liability. The closing entry in this case falls on the TV. Kvle of Bills Pnyuhle, and the transfer entry, consequently, on the Cr. shit of lial.ince. W»i now come to tho Personal accounts. All these accounts, if there he diffcrcnco between their two sides, will show either an as! V- or a liability, as the case may be, and will theiefore be closed into TJalance, in the same manner as thosse alr('act appear- ing in the altfred Net Capital, aa broii<,'ht down in Stoclc account to begin it anew. BOOK-KEKPINO. SPECIMEN LEDGER, CLOSED. See Explanation, beginning Page 129. Dn. STOCK. Cr. 1877 Jan. 20 To Ba-cnce 8660'00 865000 1877 Jan. << 1 20 By Sundries* *' Loss & Gain I ! 8000'50 j 64950 865000 CASR. 1877 1 1877 • Jan. 1 To Stock 1 400050 Jan. 2 By Flour 1 30000 i< 4 " J. Rimmer 2 1 10000 3 " Wheat 1 300 00 (< 6 " Wlieat 2 ' 12500 5 <( u 2: 56000 n 11 a li 3 23000 9 " Expense 2; 25 50 (« 15 " R. Thomp- 1 10 " H. Corby 3 1000 00 vson 3 , 97500 12 " Bills Pay. 3 050 00 ilities — sources of gain — sources of h)ss. Name the accountu kept to show assets and liabilities — losses and gains. Which of these accounts does the Single Entry Led- ger strictly contain ? What two subsidiary books along with the Single Entry Ledger will (je.nerally give tlie whole of the assets and liabilities except that of (jood>< unsold ? How is the value of the merchandise on hand ascertained in ^lost buainesscH, both in Single and Double Entry ? How does the Single Entry Ledger differ from that of Double Entry, even when the former is suppleuientod by the Cash Book and Bill Book ? lu what respect cUicJly may Single Entry bo considered an imperfect, and Double Entry a perfect, system of account-keeping? What is the fun- damental principle of liook-keeping by Double Entry ? Name the prin- cipal book in a set of accounts, and describe it. State some advantages of using additional books. What are the three principal books used in Double Entry ? Describe the Day Book. What particulars should a Day Book entry embrace ? Describe the Journal. What is journal- izing? How would you decide when a personal account is affected, and on which side ? How would y BOOK-KEEPINO. f mnd Oain acconnt »how ? TVhab does the '. as clearly and unmistakably as possible. They are intended to cover a wide field of practice, and to present sufficient variety of transactions and enforcement ot theory to give the [)npil a clear understanding of the science. Each set is complete; witliin itself, and special in its purpose and teaci\ing. Its characteristics are briefly announced at the start, and as its results only, with more or less detail, are given at its close, the pupil is obliged to accomplish the work of the riet in order to arrive at the pioper result. This mode of arrangemtmt is calculated to throw the learner upon his (..vfw resources, and rescue him from the too common error of copying down the work without understanding it. This feature will no doubt recommend itself to all faithful students. While [terforming the following work, remember that the three great qualities essential to success in Accountantship are : — Accuracy, Nkatnkss and Dispatch. ^^ For the benetit of the pupil, and in behalf of economy in the use of Ledger paper, the inimber of lines required for each account will be found immediately after the set. This apportionment, it will be borne in mind, provides for the Ledger heading, and also for the necessary space to close up the accouutii iii duo form. :. SET TL— GKOCERY BUSINESS. (Maeactkristich.— Buying and selling for Caah— BuNincns adverse. St. John's, KB., January 1st, 1877. Invested Cash, $5000. 2. Bought of Geo. Wallbridge, for Cash, 5 hhds. Molasses, 3500 gals., at 40c., $U00. Caction.— In transcribing' a Mt to yuHr Day Iktolc, l«>av« the column blank fur th« na^rMoB of roar own (olio*. ii2 BOOK-KEEPlNCi. f ■ 3. Sold ThoH. Goin, for Cash, 3 lilids. Molasses, 2100 gals., uL 3r)c., $735. 4. Sold 0. P. Holtoi), for Cash, 1 hhd. Molasses, 700 gals., at 45c., $315. 5. Sold W. B. Kol)iiiS(>n, for Cash, 1 hhd. Molasses, 700 gals., at 40c., $280. 6. Paid Expenses ill Cash, $175. ^ Capital at amtmaudrKj, $5000. Net Loss, $245. CajHlal at clos'my, $4755. Tlue follon'iiu; are the Ledger acamntu for this set, with the num- ber of lines required for each : — Set 11.— Stuck, 6 ; Cash, 7 ; Merchandise, 7 ; ExrE^Nsis, 6 ; hoim AMJ GaIxN, 6 ; Balance, 5. ^5000. lasses, SET III.— DRY GOODS BUSINESS. OUARACTKRiSTiCB.— liuyini; and uelllng for c'Mh and on Poraoual AcuouDt-Busiiietta prosperous. Kingston, January 12Lh, 1877. Invested in business, Cash, $4755 ; Merchandise, $2000. 13. Bought of Muir & Co., MontK^al, on 3 months' credit, 4 cases, 5200 yds. Muslin, at 2v)c , $1040. 15. Sold Geo. Brown, on acc't, 1 case Muslin, 1300 yds., at 25c., $325 ; 12 ps. Tweed, 420 yds., at $1.25, $525. 16. Bought of Walker ^ S.^n, for Cash, 3 ca.se« Prints, 3210 yds., at lOc, $321 ; and 4 cases do, $3500 yds., at 15c., 17. Sold H. Warren, on acc't, 6 ps. Tw.hmI, 210 vds., at $1.25, $262.50. 1«. Sold J. S. xMiller, for Casli, 2 cases Prints, 2140 yds., at 12ic., $267.50; and 2 cases Muslin, 2600 yds., at 25c. $650. 19. Bought of Geo. Brown, on acc't, 3 cases Prints, 3690 yds. at$12c., $442.80. •>0. Received from H. Warren, Cash to balance ^acc't, $262.50 22. Paid sundry items of expense, SI 20. BOOK-KICKIMNQ. Merchandise remaining unsold, valued at $3500. Capital at commenchig, $675r). iV«/ (7am, $1081.120. >, Capital at donhi (J, $7 i^:^(\. 20. Ledfjcr accounts and niiinhnr of linc.!^ vpqv.irr.d for each : — Set 111.— Stock, 6 ; Cash, 8 ; Mkkchandisi;. 11 ; Muik & Co., 6 ; Gko. IjIiown, G ; 11. \Vai:ki:n, 6 ; Expknsk, ; Loss AND Gain, 7 ; Balance, 10. #1 REMARKS ON NOTES ANT) lULLS. A nnw feature in connection with the work of the following sets is the computation of interest on notes and l)ill8. The pupil must not torget that three days' grace are allowed on all notes and bills, exce[)t those payable mi demand. Those pay- able at sight, as w^ll as those payable after sight, or after date, are subject, in Canada, to this rule. In reckoning the number of days between one date and another, the day of the first date is excluded from, and the day of the last is included in, the calculation. Thus, if we wish to know the number of days from S(;ptember 29th to December 1st, it is evident that from tlie 29th to the 30th is one day. We have, theieft)re, la September 1 day. " October :31 days. " November 30 " ** December 1 day. 63 days. A note made, or draft accepted, on the 30th September, at 60 days, will become nominally due on the 29th November, but legally due on the 2ud December. As the first day reckoned is the day after the date of making or accepting, there are no days to count in September. Therefore, we have, In Oct. 31 days. In. Oct. 31 days. •* Nov. 29 " nominally due. " Nov. 30 " " Dec. 2 " legally due 60 days. 63 dayi. U4 BOOK-KKKIMNO. When th« time is expn-ssed in months, calendar months are always understood, and tho note or bill becomes nominally due in the last month of its term upon the day corresponding with its date, but rpal/y p.-iyable tiirce days after. Thus, a note dated tlie hrst day of any month Incomes nominally duo on the first . Took out for privatv use, f30. • 17. Sold A. B. Smith, fc.r Cash, 20 hush. Wheat, at ^1.50. Inventory of Goods unsold— 80 bush, of Wheat, valued at $1.25, $100. Net Capital at commenchif/, $3499.68. Net Gam, $132» 17. Net t'a/nial at dosing, $3^01.85. Ledtjer Accmmts and murihcr of lines required for each : Stock, 5 ; Puivatk Account, 4 ; Cash, 7 ; Hills Rkceiv- AiiLK, (5; Bills Payable, G; Mkrciiandisk, 6; Interest, 6.; KxPKxsK, 4 ; Loss and Gain, G; Balance, 6. ' In this iiisiiiace wo pay thf note before due, and dinconnt Id allowed us. Intere«1 ftccoiMit Is (iel)ited tor tliu -^oxt ot the nsn of monrif rtctiv^.dbp Hs,a.\u\ oreiUiedtoi returns for the use of iiuni^n gnintfd. h\j um. By "wyinjj too money hoforft It is duo w« give Charlc'H VVehstor'tho ((*«'o/ it ul days before he ia entitled to it, vnid fur thi$ u»f th* alluwance \» made to us. Ifenue tiie Journiil ontrv i8— Bills Piivable, Dr. " 1.558 33 Cash, Vr. $551 80 Interest, " 6 ;.3 t Our mode of proceeding hero wid depend upon what we did with the interest du« up to April 2Md. If we debitwl Interest, the Joninul ennv is— Cash, I>r. «25fl2 32 Bills Receivable, (Jr. $2500 00 Interest, " 62 83 If we debited Interest Receivable, our Journal entrv will be— Cash, Dr. «25(}2 S3 Bills Receivable, Cr. «2r)00 00 Interest Receivable, " 58 01 Interest, " 4 32 Or, we may first debit Interest Receivable with the interest accrued ttnc« th* opening of the hooks, thns- Aud then say- Interest Receivable, Interest, Cosh, Dr. Cr. $4 82 i4 32 Dr. j^562 83 Cr. Gills Reccivnble, Cr. $2500 00 Interest Receivable. " 62 33 If we debitejl S. Clare, proceed iis above, snbstitutinj,' S. Clare for Interest Receivable. The thoii^litf\d pupil will observe that all these methods cf>me to the same tMug. The only difference is In the mivniur f)f treatim: the interest. The sanu ulthnate rntult Is produced in the Interegt account, viz.: a ^ain of $4.32 for interest on the note Rinc« the opening of the bookn. U6 B0 ; Gothic Hall Stand, $28 ; 1 Card Table, . rencli bedstead, 22 ; 1 Cottage Bedstead, $15. $295. ith Jakes & ?Ia" •^s, by givijig them my Note at 1 month, with interest t 9 per cent., in full of account, 1900. II my Note at 10 days, 15 Black M)0 ; 2 doz. do Arm Chairs, at Mattresses, at $20; 20 Double- leaf Secretaries, at $35 ; 25 Music Racks, at $5. Total, $2245. 147 (( •5; 1 Tota^ Settled > Bought of J. B. Ashle. Walnut Bookcases, ai $60 ; 20 Curled Haii BOOK-KKEPINQ. ■■>*. (ll, / 16. 17. )0. Sold G. W. Maybee, on acconnt, 1 Carved Rosewood Cen- tre Table, $60 ; 2 doz. do Arm Chairs, at $50 ; 1 set Enamelled Fnrnitnic $80 ; 1 Black Walnut Sofa Bed- stead, at $r)0 ; 2 Extension Tabhs, at $30 ; 2 Gothic Chairs, B. VV., Stuifed, at $15; 1 Pksv Eocke., $12. Total, $392. 12. Bought of Jakes <^ Hayes, on 3 months' credit, an assort- ment of Furnitiuv, amounting, per invoice, to $3500. " Paid Cash for Insiinince, $125. If). .Sold S. G. Beatty, for Cash, 2 Black Walnut Bureaus, at $30; 1 Kosewood BarloiM Set, $400; 1 Enamelled Bed- room Suite, $200 ; ] Single Bedstead, $8 ; 1 Quartette Table, $9 ; 1 Ladies' Arm Chair, $12 ; 1 Black Walnut Library Bookcase, $75. Total, $7()4. Sold S. Clare, for Cash, 1 Carvei^ Rose'"ood Secretary, $120 ; 3 Patent Spring Beds, at $60 ; 1 Walnut Centre Table, $50 ; 2 Rosewood Bureaus, at $40 ; 2 Arm Chairs, at $10; 2 "Sleepy Hollow" Chairs, at $25; 1 Black Walnut Parlour Suite, $300 ; 1 Side What-not, $9. Total, $809. Paid Cash for three months' rent, $150 ; Advertising, $25. " Bought of Jakes & Hayes, on acc't, Furniture amounting, per invoice, to $2150. " Bought of H. W. Huffman, on my Note, at 3 months. Fur- niture amounting to $550. " Received from G. W. Maybee, Cash on acc't, $150. 19. Sold W. Johnston, on his Note at 3 months, I Hall Stand, $5 ; 6 Parlour Chairs, at $3.50 ; 1 R. W, Tete-a-tete, $30 ; 1 Black Walnut Sofa, $30 ; 1 large Dining Table, $14; 1 Piano Stool, $8; 1 Miisic Rack, $5. Total, $113. Sold Warner Bros., for Cash, 2 Bedroom Suites, at $50.60 ; 2 Rosewood Parlour Suites, at $200. Total, $501,20. Received from G. W. Maybee, Cash in full of acc't, $242. Received from A. Overell, Cash in full for his Note of Jan. 17th, $750. 24. Sold H. Coiby, on acc't, 20 doz. Kitchen Chairs, at $8 ; 10 doz. Rush-bottom Chairs, at $18. Total, $340. 28. Bought of Smith & Co., Kingston, on Note at 3 months, assortment of Furniture amounting, as per invoice, to $1500- April 2. Paid G. S. Tickell, Cash on acc't, $500. 20. 148 it 1^ BOOK-KKEI'I.VG. 9. Received from W. W. Jones, Cash in full for his Not© of the 6th ult., and interest thereon to date, at 6 per cent. Face of Note, $295. Interest, $1.62. Paid my Note of 9th ult., favour of J. B. Ashley, with in- terest at G per cent, for time overdue, 18 days. Face of Note, $224r). Interest, $6.74.* Paid Salaries, $180 ; Sundry Expenses, $25. K'^. PaiJ my Note of 6th ult., favour of Jakes & Hay«s, with interest to date. Face of Note, $1009. Interest, $19. Inventory of Merchandise unsold, $5336.34. Net Capital at commencement, $4050. Net Loan, $6040.58. Net Insolvency at closinj, $1999.58. iMhjer accounts and number of lines required for each : Stock, 6; Cash, 12; Merchandise, 12 ; Bills Keckiv- /LBLE, 8; Bills Payable, 8; G. S. Tickell, 5 ; Jakes & Hayes, 6; G. W. Maybek, 5 ; H. Corbv, 5 ; Expense, 8 ; Interest, f>; Loss and Gain, 8; Balance, 7. BILL BOOK. All necessary explanations of the Bill Book are made by the headings of the different columns. It is so simple that the pupil will see, by inspection, its utility. It will be observed that the Bills entered in the following forms are taken i'roi^^ the transactions of Set V., and hence the notes on hand a,i I notes outstanding, as shown by Bills carried down, will be found to agree with the balance shown in the proper Ledger accounts. * In business calculations, it is not customary to enter fractioni) of a cent upon the account books, consequently in all ct)niputatioiis throu^liout thene sets where a fraction of a cent less than one-halt occurs, we lake no ..oiice of it. but where u fraction of hall u cept or more occurs, we call it one rent. 149 o o 03 » M CO O >4 I CO I rt > 91 kO 00 1 04 00 S9 : 5 : ft) t/ e- 0) j: : 3 QC PQ S"H. o-< c? ft> 00 '^ 'u C Q "3 c« O * . o :3 93 « «> I a toes t^ rH ffj Si 00" Si '*5;§3 IJ:S J ■s, > » •- i-H I- S3.ti Sao "•onI -••••''' uo •ON •-ne over, by closely observing the form of entry on pages 158 and 159, soon be enabled to enter properly any transaction as rea«]ily -s by the method already presented. Until he becomes familiar with this mode of entry, he should, before entering a transaction, make all calculations respecting it on his slate or a loose sheet of paper. Many of the transactions are similar to those of the preced- ing Sets, and need no additional explanation. Those, however, of the following dates introduce new features, and require explanation. Jan. 2. In dealings with the Bank, debit it with amountR deposited, and credit it with amounts withdrawn per check. Jan. 4. T. C. Kerr & Co have not i)iirchased this C'ase of Tweed, but have merely accepted it to sell for us, and will hold it subject to our order until sold or recalled. They do not owe us tor the goods, and should not, therefore, be charged with them. The name " Shipment" is applied to such trans.actions, and in order that a proper account may be kept with each, the coimynees' name or place of residence should be attached and the ahipnieuts immbered. This account may be named '* Shipincnt to Kerr & Co., No. 1," or "Ship't to Hamilton, No. 1." It should be debited for the full value of the goods and for all charges, thus : Ship't to Kerr & Co., No. 1, Dr. $536.60. To Mdse, $5.25, and To Cash, $11.50. Jan. 6. As Interest and Discount are the same in nature and eflPect, both representing the t«e 0/' money, and in;''s to us for payment of the Note, together with the protest charges. We do pay it, and, holding the pro- tested Note as evidence of the fact, charge the maker (or person from whom received) with the full amount paid on his behalf. The Journal entry t/IU therefore be : F. R. Sanderson, Dr. $501.06. To Bank, $501.06. 152 BOOK-KEEPINQ. Jam. 20. Haring disposed of the gooda belonging to Brown k Co. 'a oonBgt, w« find that, after deducting all charges, we have iu our pos- Mssion 94446.60 belonging to T. Brown ^ Co., for which we should give them ertdit. Commisaion should bo credited for the amount it has pro- duced. Journal entry: Thos. Brown & Co. 'h (Vinsat, Dr. $4537.60. To Commiwion, $91. To Thos. Brown & Co., !$44^t().G0. Jan. 26. Notes are frequently renewed in this way, when it is found inconvenient to pay the whole amount at the time of inuturity. Bills Receivable is debited for the amount of the new note mcewed, $1040.66. Interest is credited, $40.06, and Bills lleccivable is credited for the face of the old note parted with, $1000. Jan. 27. See explanation of the 6th. The only difference between this transaction and that of the 6th in»t. iu that the net f)roceeds of the Note, instead of being taken away, are left to our credit in the Bank. In making the entry debit the Merchants' Bank for the amount left on deposit, $2425.75; dkbit Interest for the amount paid or allowed for the use of the money, $11.75 ; and CKiCiJir Bills E^coivable for the face of the Note, $2437.50. Jan. 29. Cash is debited for the total amount received, $501.06, and P. R. Sanderson credited. It is cuHtomary in business to consider a check received the same as cash. Buing payable on demand, the cash is received as soon a.-^ it is presented at the Bank, or, if we have an ac- count at the Bank, the amount is placed to our credit as Cash deposited. Accounts to be opened : George Wilson, 5; Henry Cummings, 5; Cash, 24 Merchants' Bank, IS ; Bills Uecrivable, 10 ; A. R McMaster, 6 ; J. G. McKenzie ., 6 ; p. R Sanderson, 5 ; Thomas Brown «k Co., 5 ; J. C. Kerr k Co. 5; T. Brown & Co.'s Consgt No. 1, 5 ; Merchandise, 24 Shipment TO Kerr & Co., No. 1, 6 ; Shipment to Kerr t'fe Co., No. 2, 5; Commission, 5; Int; Riisx, 6; Expe.nsii:, 13 Loss AND Gain, i) ; Balance, 16. SET VI. The Books to be used in w(jRKiNa this Set are, — Day Book AND Journal tJOMBiNicD, Bilx-Book^ and Lkdokh. Clu»A0TiiiiBTiC8. This Set is intended to illustrate the prlncipleH of aniniple Conunto- sion iu connection witha Oeni^.-iii MenliandiKe budiuexH ; aNu, the giving and rootiv- ing of Note«, drawiii_r and ac4;ei>tinjir DrHft>, and .node of treRting them when they fall dvie— Drawing; aiid i'uc«iviii„' Chucks, auvl keeping a UaMk Account iu the Ledger. BOOK-KEEI'iNa. ^'1 SET vr. 'nM['i 1877. TWO PAIITNEUS. Jan. I St. George Wilson and Henry Cumrninsfs have this fUy entered into partnership as Dry Goods, Grocery and Commis- sion Merchants, under the firm name ot" " Wilson ife Cummiiigs," renting store and fixture.s from A. Petrie, at $900 per annum, and agreeing to share yaiiia and losaes iu proportion to capita) invested. George Wilson invests : — Cash, as per C. B., $2,800 ; Stock of Merchandise from a former husiness, $3,000 ; 1*. K. Sanderson's Note, at three months, from October loth, 1876, for $500. Henrv Cummins. net, at 50c., $(>25. Cask sales, $325.30. 9. Bought of Mchinis Bros., flamilton, 7 piece.s Canadian Tweed, 225 yds., at $1, $225. Gave in payment my Draft, at 10 days sight, on A. ^>. Campion, payable at the Merchants' Bank, for the full amount. Paid Freight, $8.40. 10. Sold D. E. Fulfonl, Kingston, on acc't, 1 case Prints, 930 yds., at 12jc., $116.25; 2 piece:* Canadian Tweed, (14 yds., at $1.25, $8(> ; total, $196.25. Paid for cleaning store, $4.50 ; for Wood, $60. Cash sales, $425.65. 11. Remitted J. G. McKeuzie & Co., Montreal, Cash on acc't, $446, and our Acceptance at 10 days' sight for the balance of their account, $400. Paid for Advertising, $20.40. The Draft given Mclnnis Bros, on A. B. Campion, has been protested for non-acceptance, and returned to us, by the Merchants' Bank. Paid the face of the Draft and protest fee in Cash, $226.06. 12. Bought of Gordon, Mackay & Co., Toronto, on acc't, 10 pieces Scotch Tweed, 350 yds., at $1.30, $455. Ac- cepted A. R. McMaster's Draft of the 8th inst., payable 10 days after date, at the Merchants' Bank, in Toronto, for $500. 13. Sold A. B. Campion, for his Note at three months, 1 case Prints, 840 yds., at 12ic., $105. Paid Gordon, Mackay & Co., in full of account, per check, $455. 15. Bought of J. G. McKenzie & Co., Montreal, 10 cases Cana- diian Tweed, 120 pieces, 3,720 yds., at $1, $3,720. Gave in payment our Note at 30 days for $2,000, check for $720, balance to remain on account. Cash sales this day^ $340.50. 16. Sold A. B. Campion, for Note ar 30 days, from Thos. Brown all tlut i» «equii>ed 160 BOOK-KEKPINO. L Book, aUly afUr 77. partner- l Retail king aud 00 00 00 00 00 nd Isaac payable e at 10 1 12ic.j Spring 8. Supe- JO. 116.60. Salmon bla. Su- ooks for 650 lb«. at 9c. ; Young auco, at $5.50. 6. Deposited in Morchants' Bank, $12000. Had T. C. Kerr's Acceptance of the 3r(l inst. discounted at B;uik. Face of Acceptance, $ ; Discount off, at 8 per c«*nt., $ ; Cash receive months' ricdit, or 3 per cent, off for cash, 100 boxes Layer Hnisins, at $2.25 ; 5 bbls. Zante Currants, at $12.50. Paid frei-iht on same, $5.40. Cnsh sales, $216.80. Sold P. D. Con«;er, Toronto, on 30 days' credit, 2 bags Java Coffee, 250 lbs., at 40c. ; 2 half chests Colored Japan, 125 lbs., at 70c. ; 500 lbs. Crushed " A " S^^^ar, at 13c. Received from A. S. Austin, cash on acc't, $500. Cash salf^, $265.30. 11. Received from H. Gordon, his Note at 3 months, for $400, to be applied on account. Paid for sundry expenses, $12.50. Cash sales, $240.50. 12. Sold T. C. Kerr, St. Catharines, on his Note at. 2 months, 10 bbls. White Fish, at $6 ; 10 bbls. Salmon, ai $14 ; 3 bags Rio Coffee, 136, m, 151, i», 153, it,*— 396 lbs. net, at 40c. Cash sales. $175. * The large numbert, as 1.36, repiesont the gross weight, and the imall numbers to the right, as 12, the number of lbs. tare. 13. Bought of J. Carrnthers & Co., Kingston, for Cash. 10 bbls. Golden S^rup, at $24.40 ; 4 l>hls. Bordeaux Vine- gar, $10.50 ; Too bbls. Salt, at $1.50. Remitted Rim- mer, Gunn & Co., Montreal, Bank Diaft, in full for their invoice of the 8th inst. ; less 4 per cent, discount. Paid Cash for the Draft, ^ pei' cent. Exchange, and the ne- cessary stamps. A. R. Sanderson withdrew on acc't, $200. Paid Isaac Porter on acc't of salary, $12. Note. — In the above remittance- ^he 4 per cent, discount amonntf to 131.86, which, deduoted from tli j face of the invoice, leaves $764.^4, K IGl BOOK-KKKTMNG. iir»*ii th« amount oj the face of the Draft. 'I'lie stamps rpqnired (3o. on every jjlOl) or fraction thoroof), anniimt Id '24c., aiiti thi: excliange to 96c, The cash actually paid out is, face of Draft, $764.(54; iStainpB, 24c.; Ex- change, 96c.; total, $76r).84 — and the difference between this and the face of the invoice, $790.. W. is $30.66, the amount actually gained by paying this bill within ,30 daj's. The entry is made in the tance discounted on the 6th inst. The full amount of invoice ib entered on the Cr. side, and the discount on the Dr. side. See entry in ls. Kx'tra Bakers' FJour, at $7.50; 30 bbls. Sn])erior Extia ^-f BOOK-KEEriNO. 22. Gave H. A. Nelson & Sons a Draft at 10 days, on H. Gor- don, for 1200. Boiiing through the Journal. Merchandise purchased for cash is entered in this book, and also in the Gash Book. It is not posted until the end of the month, when the total amount is brought from the C. B., and added to the footing of this book, and then posted in total to the debit of Meichandise Account. i i 1 m M ■■t'ii i^ 1 SALES BOOK. and scella- them. All sales of merchAudise are entered in this book. The amounts of goods sold on account and for notes are placed in the outer column, and posted directly to the debi'u of the pur- chaser's account, or to the debit of Bills Receivable Account, in the Letlyrer. A merchandise column is kept in the Cash Book, in which all cash sa es of meichandise are entered, therefore these are not entered in the Sales Book until the eiid of the month, when tile total cash sales are brouj^lit from the Cash Boi k uud 165 unniji f» ■; I BUOK-RKEriNa. added to the total fsted from the C. L>. This system is necessary when large sales are efi'ected, for reference, and to guard against error, but it cannot be car- ried into practical cfTcct in a retail business, on account of the number of petty sal s tliat occur during the day, the amount ol which is ascertained -sJ. niglit, by counting the money in the drawer. CASH UOOLC. As the following Cash Book is the book of original entry for all such transactions as are entered upon it, gr^at care is neces- sary in making t,hese entries. They should be made in such a manner that any person mav be able to determine wliat account was intended to be debit<'d or credited for tl)e money paid or received. For this purpose tlie following KiJLE should be observed : When money is received, write the name of the account to be credited for it, next the folio or date column on tlu! left side, and the words of explanation, on the same line a little to the right. Wluni money is paid write the name of the account to be debited for it, next the folio or date column on the right side, and the words of explanation on the same line, a little to tiie right. The Ledger titles should be kept in a perpendicular column, separated by a slight space from the M'ords of explanation. And it adds greatly to the appearance of the book to begin the words of exi)lanatiou all on a perpendicular line made by a light pencil mark, and to write them one-half smaller than the Ledger titles. Post items from the Cash Book, .lournal Day B«)ok, Invoice Book^ and Sa!«'s Book, in the saim- order, as regards the dates when the trarisactions wore enti'icd. T.'iis is a >'ery convenient form for a Cash Book to be kepi in connection with a general merchandise business. The ft* ture of special columns may be extended, if desirable. It will be seen that all cash entries, debit and .creilit, except 106 BOOK-KKEPINQ. I ■ales of merchandise, are taken to the Ledger from this book, together with all accounts producing or co.stiiig cash. The columns headed " Merchandise " and *' Expense " will be found very convenient for posting. Should the cash trans- actions of a month extend over several pages, the footings of these columns are hrouglit forward to the end of the month, and posted in total. The check marks in the colnnin follow- ing dates, are made to indicate that the amounts opposite, in the "Merchandise" and "Expense" columns are not to be posted, and the figures are the pages of tlie accounts in the Ledger to which the amounts in the *' Sundries " column oppo- site, have been posted. The method of posting from the Cash Book is extremely simple. The amounts in the " Sundries " column on the Dr. side are posted to the credit of their respective accounts — the page of the Ledger being indicated in the folio column, and the amounts in the " Sundries " column, on the Or. side, to ths debit of their respective acounts. The footing of the " Mer- chandise " column, on the Dr. side, at the end of the month, is not posted, but carried to the Sales Book and added to the other sales, and posted tlierefrom. The total footing of the " Expense " column, on the Cr. side, is postetl to the debit of Expense Account. The Cash received, or amount of the Dr. side of the Cash Book, is then })osted to the debit of Cash Acc(Mint, and the total footing of the Cr. side, or cash dis- bursed, to the credit of Cash Account in the Ledger. As the debit aide ot the Cash Book contains the credits of all accor nts producing cash, and the credit side the debits of all accounts costing cash, it will be seen that when the above posting is completed a double entry is effected. BILL BOOK. The Bill Book in this set is not used as a book of original entry to post from, but as an auxiliary. To save room we have nco given it. No difficulty, however, will be experienced b^ the (, Oc. xo ' 4192 287 80 60 2' Merchants' Bank Dr. t> Discount " '>■ To Bills Receivable P. D. Congui's i^iccuptitnce of 17th inst. discounted, pnjcoeds passed to our credit. 22 053 00 00 4102 279 H. A. Nelson & Sons Dr. To H. Gordon For our Draft at 10 days on H. Gor- d 1.0 I.I 1.25 mm lU ^ us, Li 2.0 1.8 U IIIIII.6 P /a ^ /a AW^ ^v o 7 /A Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 i\ ,v 4^ ^ ■■\ o ^ O^ \ % O V (2) . I • BOOK-KKi.riXO. Toronto, January 22, 1877. M, 3 4 C.B. Brought forward Cramp, Torrance & Co., Toronto 12 bags Rio Coffee, loOOlbg.atf .32 to chests GuniDOwder Tea, 1475 *' " .60 10 hxs. Western Leaf Tobacco "41.50 60 days or 2 rter cent, off for cash :_ 24 A. S. Austin, Guelph 600 bbls. Goderich Salt at |1.50 20 Smith & Keighley, Toronto 20 hf-chests Grinp. Tea, 1145 lbs. at$ .66 10 " Col'd Japan, - 660 lbs. " .60 10 bbls. Stand. Syrup, 370 gals. ^« .34 Cash, cuspe'- C. £., $1000. SO days' credit for balance.* 27 Rimmer, Gunn & Co., Monti 60 bbls. Crushed ''A" Sugar, 12000 lbs. at| .lOi 75 " Yellow Sugar, 15000 lbs. •♦ .08 '50 " Porto Eico Sugar, Smontlis 10000 lbs. '' .07 30 G. C. Winger, Brighton 10 bbls. Salmon Trout at $9.00 25 " White Fish " 5.00 60 ♦' Herrings " 3.00 Cash, as per C. B. Ca*h purcfutsea, frcfu C. B. Total Mdse debit 499 885 415 755 396 125 1260 1200 700 90 125 150 20 00 00 70 00 80 00 00 00 00 OOl oo! 365 00 842180 ^'\ 1799 900 127^ 3160 14558 1801 16359 50 20 00 50 00 60 00 •. JLv^^* WTT-M is ported directly to «ie credit ut Smith & Keighley's ancount. The tlOOO <8 posted to the C»sh • count from the C. B. Or, Smith & KeiirhlMr mav ha cmUted with th4 voKoU and debited wfth the f lOOO. Aeigiuer n»»y be 174 BOOK-KEEPING. SALES BOOK.— SET VTL Toronto, January 3, 1877. 'J e-~lp- 2 3 4 2 3 T. C. Kerr, St. Catlmrinea 5bbl8. Crushed "A" Sugar, 1000 lbs. at$ -12^ 8 " Strong Baker's Flour, at ^6.00 10 " Spring " " 5.50 10 " Extra *' " 7.00 15 " ISuperior " '• 7.25 Bills Rec, Accvptanct at 10 days 4 L_ A. S. Austin, Guelph 6 bbls. Salmon Trout at $14.00 20 " Herrings " 4.00 40 *' Sup. Ex. Flour ** 7.75 10 P. D. Conger, Toronto 2 bags Java Coffee, 250 lbs. at f .40 2 hf-chests Col'd Japan, 125 lbs. " .70 500 lbs. Crushed "A" Sugar** !l3 SO days 12 1'. C. Kerr, t^t. Catharines 10 bbls. Wliite Fish at $6.00 10 ** Salmon Trout ** 14.00 3 bags Kio Coffee : gross, tare. 136 — 12 lbs. 151 — 15 " 153 — 17 •* 440 — 44 = 396 lbs. net at .40 Bills Rec, Note at 2 mouths 15 Henry Gordon, Barrie 10 bbls. Apples at $4.50 10 '* Mess Pork " 15.00J 25 •* Sp'g Baker's Fl'r*' 7.00' SOda/ys Amount forward 175 125 48 55 70 108 00 00 00 00 75 70 80 310 00 00 00 100 8 65 60 140 00 50 00 00 00 158 45 150 40 00 00 175 00 (1) 406 75 460 00 252 50 358 40 370 00 1847 65 BOOK-KEEPINO. (2) Toronto, January 17, 1877. 3 2 3 Brought forward P. D. Conger, Toronto 1200 lbs. Cheese at $.11 20 bbla. Extra Baker's Flour " 7.60 30 '* Superior'* " 8.00 10 *' Salmon Trout " 14.00 Bills Rec, Acceptance at 60 days 20 A. S. Austin, Guelph 16 bbls. Salmon Trout at $14.00 8 " White Fish " 6.00 26 " Herrings " 4.00 24 T. C. Kerr, St. Catharines 426 lbs. Factory Cheese at $ .12 4 bxs. P. of W. Tobacco lbs. tare. 114 — 19 116 — 19 118 — 20 120 — 20 468 — 78 = 390 lbs net at .32 29 P. D. Conger, Toronto 30 bbls. Salmon Trout at $14.00 Bills Rko., Note at S month* Cash aaleafrom 0. B. Total Mdse credit 176 132 160 00 00 24000 14000 210 48 100 61 00 00 00 00 124 80 1847 65 662 00 368 00 175 420 3463 3226 6690 80 00 45 70 16 65 00 00 r77 Dr. 1877. F. Tan. 1 1 %/ r>!v/ e! 2 v/ v/ KK-Ki:KI'IN/ 24 2 <( n/ 26 3 26 s/ 30 3 (< %/ S.B. 1 A. S. Austin Mdse ' (( Discount Mdse H. Gordon Mdse H Gordon Mdse Bills Rec, Mdse H. Gordon Mdse A. S. Austin Mdse Total <« M O. W.'h Acceptance flisi'ounted Salon thm day On account This day's salM « R. 0. A; Co. 's Invoice of the 8th Saie»< tliiH day On account Sales this day On account Sales this day t« II. G. "s Not*- dis- counted This day's sales In full of account Sales to-day On account This day's sales Mdse credits Cash debits Mdae. 120 170 150 186 216 205 240 175 245 180 195 225 216 145 218 275 30 55 00 50 80 30 50 00 60 70 00 00 40 25 20 60 Sundries. 322(5 4130 9000 406 500 00 00 30 400 00 70 00 66 20 300 60 100 3226 70 18164 11 00 00 00 00 i78 BOOK-lvKtl'lNG. BET VIL CASH. (2) Ob. 00 00 70 166 00 00 00 00 00 70 ]l Jan. 1 4 ti 5 6 (( 8 (i " 9 << (( (( (< (t t< (( << << (( ft (( u 1877. ! F. J J 5 2 6 6 1 6 x/ LB 5 1 4 %/ v/ 2 %/ 5 6 I LB. 5 y/ r.B. I 6 1 11 13 (( (( (( 16 !l8 |19 20 23 24 25 26 ti 27 30 A(lvertiAi)i}r in Daily i'a|>era Set of IxjoliiforNtore Oil account of wa^^es De|)uiiite«l On O. W.'s Accept- ance On Goods from R. O. Withdrew on acc't On QoodH from J. A. M. Sundry ileins J. C. ft Co. 'a Invoice On account of salary A, R. Sanderson withdrew on aco't Rinuner, Giinn Full for invoice of & Co. Expense Expense n Wm. Active Merch. Bank Discount Frei-ht Wm. Golden Freight Expense Mdse Isaac Porter 8th inst. Repstring store It Merch. Bank Expense Jas. Spry Discount Qjuarter's rent of store Depuaited Sundry items On account of waf^ea On H. a V Note A. R. Sander.Sf)n withdrew on acc't jMdse Jas. 'Spry Part of S. & K.'s In- voice On account of salary Expense Mdse W. Golden Taxes, $40.60 ; clean- inpr store, $4.50 *. C. W.'s Invoice Withdrew on acc't ({ Total Expense debits Cash credits 179 Kxp'nse SiindriesI ! nslfio' 1560; 6 50 12000 00 I |89 1070 150 00 12 65 200 25 DO 75 45 60 10 480 151 6 40 436 00 12 00 200 00 796 50 200 00 1 20'00 6l05 14500 looo'oo 10 00 365 00 215 00 480 15 16058 2105 19 92 l»164 11 BOOK KKfiPING, LEDGER -SET VII. \i Dr. A. R. Sanderson. Cr 1877 ■ i " 7 Jan. 1.3ToOMh, O.B.S <( 26 " " OB. " 311 " Balance 2 20000 14500 1177476 |I1877 Jan. (( :i211976, 2 2 2 31 By Cash, O.B. "Mdie, LB. " A. 8. Aus- tin, J. *' Loss & Gain 413000 600000 87000 211976 1211976 WILLIAM GOLDEN. 1877 Jan. I 8 30 51 ToCash, C.B.!2 " " 0. B. 2 " BcUatic6 16000 21500 J1175476 1. 12119;75 1877 Jan. 2 2 31 By Cash, C.B. •' H. Gordon, J. '* LoM&Gaiii 900000 100000 i 2119,75 1211975 OASH. 18771 Jan. 31 To Sundries O.B. 18164 11 1816411 18771 'Jan.i31 " 31 By Sundries, C.B. " Balane* 1816411 180 BOOK-KEEPING. 1>B. BILLS RECEIVABLE. (a) Cm. 1877 Jan. *t It ti it tt 3 11 12 17 23 29 To T. 0. Kerr, S.B. " H.Gordon, J. *' T. C. Kerr, S.B. " P. D. Con- ger, S.B. " H.Gordon, J. «« P. D. Con- ger, S.B. 1877 Jan. 6 1 406 75 (( 15 (( 181 1 40000 tt 24 tt 31 1 358 40 1 2 66200 2 30000 2 42000 264715 By Cash, C.B '* Sundries, J. " " J. It Cash, C.B. " BalMi04 40676 400*00 662,00 30000. 77840 264715 MERCHANTS' BANBL 1877 Ja.n.1 6 15 18 19 To Cash, C.B. 2! 12000100 " B. Rec, J.l 392120 ** " " J.2 653100 " Cash, C.B. 2 20000 1324520 il877 Jan. (( tt tt tt 17 19 29 31 By J.A. Math- ewson, J. " Mdse, LB. " B. Pay., J. " Sundries, J. " BcUance 27931 815!00 172280 11250 1031559 13245 20 BILLS PAYABLE. 1877 Jan. (( 29 To M. Bank, J. 31 " Balanc* 1722 1799 362200 80 20 1877 Jan. tt tt 16 23 25 By S. &K., J. " A. S. Aus- tin, J. '« C»T.ACo.J. 162280 200 1799 00 20 3152200 181 BOUK-hLEEI'lNO. Dr. A. S. AUSTIN. (3) OIL 1877 Jan. 2' «( 4 (( 20 <( 2'6 To A. R. San- derson, J. " M(l»u, S.B. ** " S.B. «♦ B. Pay, J. 870 OOi 40000 :i58'()0 L^OOOO 18S8'00 1877; I Jan.ilOBy Ca.sh,C. B. 24 " Md3e.,I.B. :J0; " Canh, O.B. 31 ♦' Balaiuie 50000 90000 10000 388 00 1888 00 HKNRY GORDON. 1877 Jan. (< 2 15 To H. Goldten, J. '< Md80.,S.B. 1000 00 37000, 137000 1877 Jan. 11 By B. Rec, J. 1 40000 i( 18 ** Cash, C.B. 1 400,00 (< 20 •* " C.B. 1 2000 (( 22 " H. A. N..^' Son, J. 2 20000 i( 23 " B. Rec, J. 2 30000 lNQ. Dr. RIMMER, GUNN & CO. % 1877 Jul). i:^ To Cash, C.B. ■)' 31 " Bala I tee I 'J877 700 50 Jan., 8 By M.lae.J.B. 3l(JU0(J a05G 50 " 27 " »i 1.15. 79G50 2"! 316000 395G 50 /I SMITR & KEIGHLEY. 1877 Jan. 10 80 '* V2 ** K S.B. 1 35S 40 ■ -^ ' 940 " 31 ii : ^! 1 BuUui, 1 175 i 60 ^^ 95'' i 94096 .iai.;ji..r.L z i6u BOOK KKKI'INa. Dit. WILLIAM ACTIVE. Cii 1877; Jan. I 5 •• 31 To < 'n«h, O.B. 2 •• M.i{ank,.l.3 .1877 I I n ro IJau. in By Expense, J. 3 34 50 1 41)00 4000 40100 JAMES RPIIY. 18 J 877, I 'T an. 23ToCn8li, C.B. 2| •♦ 20 " I 11877 20 00 Jan. 31 ♦ CM. 2,1 KHtO, I " M.Baak,J.3| lO.OO;. ' 4000 By Expen8e,J. GEURGE STOREY. Jaii.31,ToM.Bank, J.'3 ! ':i877: ; 40 00 iJ an. ,31 By Expense, J. ISAAC PORTKR. 1877 Jan. *< 13 To Cash, C.bJ2 31 " M.Bank,J.3 MERCHANDISE. 4000 1377 Jan. 31 (I To Sundries, i 1.6.2 " Loss dt Gain 1G359 4880 21240 50 05 15 1877; I Jan.;31|By Sundries, , SB •' ' " " Bed. Invhy. .ra^' ■■ i«i (n) Cr 40 00 40100 4000 121240 DISCOUNT. Cb. 1877 1 Jan. C To Cash, 0.B.2 '89 << 16: " B. Koc, J., 11 7 HO << is; " *• " J. 2 90 << 24 ♦' Cash, C.h 2 i> 05 << 31 1511 1 1 3.*> .S5 is;7| ( '89 Jan. 13 By Cash, O.B <« 17| •' J. A. Math uvvaua, J.i 2 SO GO I 819 3o 8j EXPENSE. 1H77 Jan. 4t 31 To Sunahes,J.'3 " " ** (J.B. 2 ;)1 ./>(/ Xujw tJ& Cfuiyt C4or 040 15 FREIGHT. 18771 Jan. I 8 ♦* 9 To Cash, C.B.!2 *' C.B;i' (( 10 70 5 40 1877 Jail. 1 3l\By Losidb Gain I I .L_L 1610 lOilO LOSS AND GAIN. 1S77 Jan << tt 31 (( it To Kxj>ense " Freight ♦* A.H. ISan- dersou \ i 640 IG 1£ it 18,7 Jan. 2119 2119 76 75 14895 76 1 31 By Mdso " '' Discount 489576 Ub PfU BOOK KliKPlNO. TALAXCE. (7) Cr. 1877; Jan. 31 To Cash << << "! " B. Rcc. "' " M. Rank **i " A.S.Austin ", " H. A. N. & I Son "\ " V.'D.C "I " T. 0. Kerr "i " Mdso. i 210502 Jan. 31 By B. Pay. ; 77H4(» 3031 5 r)n oiigeri r I I: 3S8 00 20000' 2.52 50 175 HO 14550001 28700 21 C( (( ' " n. a. & Co. ": ♦* Smith i^' K. " " A. II. San- flersion ** '* W. Golden I- ■ ■ 1790 20 3100 00 277 ^■-r,o '1177476 111754 75 287Ce 21 (7) Cr. BOOK -KiitPlNa, L. 1790 20 r.ioooo 277 r,o BAJ.AIsrCE SITEKT. A ** 13 il, nice Sheet " ia a collection of all fhc (lifTorences of the Ledger accounts, arranged so .as to show at one view the rf suits of the business. It erabrices, in fact, the Balance, Loss and Gain, and Stock Accounts. The following form, although simply headed " Balance Sheet," includes also the "Trial Balance." The manner of ])rej>arini; it is as follows : 1. Take a sheet of paper of proj)er size, and for a border, rule double red lines around the margin. 2. Rule parallel head-lines, leaving proper space for double headings, a^\ in the example. 3. Ascertain the number of Ledger accounts to be repre- Honted. If the business is that of a single proprietor, rule in pencil as many lines as will contain all the accounts, and ^«/« additional. If it be a partnership business with two or more partners, rule three additional lines for each partner ; thus, for one proprietor, five lines more than all the accounts ; for two partners, eight lines more than all the accounts ; for three part- ners, e,levp,n lines more, and so on. 4. Lav off prop'^r spaces lor debit and credit money columns ; first for the footings of Ledger Accounts, second for Gains and Losses; third for Stock, or if partners, for each partner — and fourth for Resources and Liabilities ; also single columns for Ledger titles and their Ledger folios and a single money column for Inventories. The position of these columns will be seen in the example given. The ruling of the vertical and horizontal ink lines, and the method of making the entries will be better understood by a <(imple inspection of the form than by any verbal directions. l«7 ' o H w o BOOK-KKEPlNd. 1 Or*? 2 1 I a : :S S ss la 04 o S s' .! ( s J. Si if S O ifl Se4 O O OS >A rH O O o o -< 1-- -4; 5 o ' ■» TO » (N o _ _' »« » 5l «■! O S© O 1- 05 «} "O O to rH iM eo 1-1 o < •O 3 /J © 1- 1 o © o in lO © 'O » 1-1 i-i (M » O 15 O lO 'i5 o ;o o» ©55 '^ t^ !0 iH CO IM ® ^msi ^ 8 I* 0) 04 0» IS IS §Oi^i0O©©©©3©.t5OO'*O Or-"-Hea5c©oio>0303:iOi-it-i-i a 's 1- IS l|v c e If a C d ; i-ii- to settle the account, it should have been paid as :oag before April Ist aa it would talte to produce 44 cents interest; vix., 11 days, bringing the equated time to March 2l8t, 1877, aa above. The student will perceive that the principle observed here is to charge Abel Bond with the interest un the various amounts received by him ftom the time of their becominj? due in Cash to the assumed date of settlement, and in like manner to allow or credit him with interest on the sums paid by him. A careful examination of the two methods will show that they are essen- tially the same, for if we divide the difference of the products in the tirst by 6000 we obtain the balance of interest, 44 cents nearly. The reason of this is plain. The interest on $220 for 272 days, (using for convenience) the same rate as above) is , ^ 220 X 6 X 272 220 x 272 ^„ ^„ , .,, ^ ecjuai to r-r = :r-r =S9.y7, and so with the ^ 36000 6000 '»'•'•*"» **"" °" rest. Now, in the first method we simply write down the pro- ducts, reserving the division by 6000 until we arrive at the difference of the products. Indeed, if we divide each individual product, the sums of the debit and credit products, and the difference of these sums, in the tirst method, by 6000, we shall find the quotients to agree respectively with the corresponding amounts of interest in the second. The number of days to be counted from April 1st is more nearly 1 2 than 1 1 , but we have chosen to give Mr. Bond the advantage of the fraction. If he propose to give us his note with interest for the balance of the account it should be dated March 21st, 1877. If he propose to settle the account on the 1st of April, 1877, he should pay $225.44. There are other ways of equating an account, bat our ■pao« forbida us alluding to them. 192 B+Q i3v*nr>en8e, and the Loss and Gain account proper. NOTE. — Any speculative property on baud, wt found by taking stock, in mi aamt. Of tLtse clasuiticuiionb, III. and lY. seem to us the only ones of any speciul vulne. The former atfoids the means of showing the reason for debiting and crediting accounts of t/uiiys as well as accounts of ytrsonm. The hitter is of practical utility, in leading us direct to the great end of all account-keeping, namely, the preaent financial condUiou of the btmines-s, and the ways and means by whicli from a known preounis cundUi&n the present one has been attained. . NOTE.— The tcrma Ueal and Jiepresentative have been applied by acme to thatwo div.<'o:i8 in No. IV. Abtht-he lemib, however, are used by others in a different tense, we have preferred , rather tlian co)ifu.<'e tlie student by the une of termn ho differently aiv plied, tn call them ff lUEOOND GLAiiS CGUTIKlCATEb. JULY, Ji«7L TiMi — One Hour and a Half. L D«crlb« the Cwh Bouk, Jouma), Ledfcerancl Invoice Uuuk. 1 You commence btisinesM witli $.S,000 cash, and tir>,o()0 gooilH purchased from A. B ftt6 months. Sliew whiit accounlH you w<>ulcr yurd, paid uuh #l,OOU, and i^ave ui.v not? at 6 nioiitha foi reniaindur. (b) Sold t<> John Smith, froodn ??00, received in ouh 1160, and his noU att months for the renmiiidtr. ^ (e) Discounted the above note at 7 pur cent, (a) Lost my pocket houk containing |IHO. (e) The |Mickct Ixiok was found a few daya after and rettimetS, when I ((avi $\0 U) the tinder. Shew how to averaKfc an account. Doufflit ;rood<< from A. R. McManter ft Bro. ai per invoice: April 4th, 9(iO(/ on 4 months ; May l.'ah, $0^0 on months . .lunc i2th, Sl,020 on 4 montliii. Paid on luxount. May 2Uth, 1760 ; June 6th, |720; July lOtli, $3U0. When must I pay the balance? FIRST CLASS CERTIFICATE— DECEMBER, 1874. Time— Onf, Hour and a Quarter. 1. Are all the Real Accounts closed To or Uy Profit and LosaT Give rsason for year aitxwer. 2. Explain how the followlniy accounts are closed : Profit and Lo^s, Stock, Balance. 8. Deflne Bill of Lading, Bonded Goods, Bill of Entry, Consiifuntent, Manifest, Letter of Credit, Salvat,'e. 4. Shew with example how to " averaije an account." 6. Shew how to journalize in the following cases:— When T sell poods of one sort for part j^oods of unotlier sort, ])art ciush, part bills, and part credit. When 1 buy goods of one sort for i)art |,'()ods of aiiotliur 8«jrt, part credit, part cash, and p'lri bills. When 1 roceivo a k'),'acy in houses, or hinils, or troods. When I buy a bill of aiiollicr for ready money and itHieive discount. When I sell a bill for cash and g'we discount. When j,'ooda liou^lit on cre John TbomiMuu, Dr 1800 00 Bank, 1200 00 To Billa Uflc«ivabl«. {^) HblpiiieDt to A. Low, Dr ▲. Low, To Merrh»niliao. II Ctuh iii /I 800000 1100 00 ViM 00 (v) John Henry, Ur To John Henry's CunHlt^nment ItO 00 IV. Joumaliie the followinj; tranaactionn, puHt and cluae *.he Ledffer :— July iHt, 1876 InvcHted in lnisineaM, ciisli, i^()0; nifrchandisu, 14,750 ; a note fo' liUOU in favor of .loliii Hill, ttiifiitid Uy W. VViliini;M. and undorHed by H- Cooiter, dated May lutli, 1M7&, at UO dayri ; an aucuptud draft for t.'iUU, drawn by 11. Sini|mon on (ioor^u Duan, May lOlh, l!i7.'>, at 90 davH, and accepted May 16tli ; K. Mainiin;;'a nucoiuit, $:iOO ; Ruat ICstato, <:{,6<)U. 2nd. Sold McC'roa, Urotlier.i, nivrohandi^u tu« per invoice, ilW ; received in pitynient cheque on Ontario Uank (or 4^100, their note to lalanco. 3rd. Shipped R, Manning 93,000 wortli uf nieichandiije, uno-lialf from my Ktoroliouse, balance bought fioin J. Ileal on my note at .HO daya. 4tli. lleeeived from R. Manninif hia aeuond uonalifiuncnt, conHiatini; of 100 bids, flour, invoice'! at $8 iwr bbl; paunt-8aloa of inerchandiae Hlilpind H. Maiitdnif on the 3rd Inat., 920 ,' uecoiuiiunied by a cheipie lor unit, of uur net proueeds, 9:i3,.'>00, whioll I depoaited m iiunk. Meruhandbiu ou hand, aa per inventory, 93,250.00. ?. Write out the liuameait ForuM required iu the precediuj; queatiou for the lat ano 8im1 of (he utouth. 8£CUND CLASS C£UTIF1CATES— JULY. 187& TiMB — One Hour and a Quarter. L Which do you consider the more aatisfactory aystem of iiook-keepiDg, Blofiv o* Double Entry? Give your reaaona in full. 1 flxplaiu the following temia aa U8ed in liook-keepinf; : Bills Payable, Stock, Ship- ment, Consignment, Account Ualea, Acceptance, Drawee, Proteat. tb Journalize the following- Give your rule, and ahow that it ia aatiafactoiy wbea applied to tliese particular entriea : (a) July 1st., 1876. I connnenee busineaa inveHting as follows :— Caah 95.000, Mdae. 92,500, Wood for use in Store 9luO. I owe on a note, favor of John Thumpaon, dated J une lat , at 6 mus. 91,200 with oue month's intereat on aanie ^ (b) Bought of John Jone^ Mdae. aa per invoice 91,200. Gave iu payment my note for 9600 at 30 daya. lialance on account. (c) Rec'd from Uerry Kerr lOO Bbla. Flour invoiced at %A per b)il., to be sold on his account aud risk, paid dray age, &«., by an order ou W. Smith 940. Ak dive Day Book euthes correapuudiug to the ioUowiu^; Jourual entries t BOOK-KEEPINa TTT 1 \ W M«m. Dr. To John Walker. Dr. (b) Bills Pa vtt.I«, To Kaiik •• Wm West. * Dikuouiit . 180 100 800 1,000 00 00 00 00 SAO 00 00 60 00 3.10 460 1,000 f>00 lOO 00 00 uo (C) Bhlpnipnt to A. B. Pr. Tm .Milse -. " C. I> * •• Cash Si OIt*» Per Wook fntrit's airrenpondlnjf to the f(»lli»\r'ntr entree an foiinrt in MdM, kicuuiit, and clubo Um acuuunt,, giveu tlut |2,000 worth of MdM. atill reinaini unsold : Dr. Mpsb. Cm. Julj 1 «• 8 •1 6 M 8 m 10 To .Stock " Siiiidrie<» , " Hills Kcceivable. " Win. Coopor . . . " John Suulb 3.000 00' July 1 1 640 00 It ''I 320 W) II 8U0 00 • 1 H 410 0{)' 41 « 1 f« 10 By Cash '^ Uilli Payaltle " John Jdiies " Kliipmeiit to A. B. " HiIlM Receivable. <• Bank .^001 0« 160 CO 1.200 l.NUO 1,600 100 00 00 00 00 KORxAIAL SCHOOL FOU ONTARIO. FORTY-NINTH SKSSION— .TUNE, 1878. FIRST AND SECOND CLASS CERTIFICATES, Time— Two Hours. 1. DfTfd" the foDowinjcr accownts Into Personal, Real and Fictltloin, vir.. ;— Cash, A. R, bunk ot Toronto, liuorest, Heal Kttute. ComniisMion, Billa Receivable, Mdsv., Expttnae, Bank Stock. Bills Payable. 1 Divide the name accounts into two chisses, one showinu' an astet or a liability, the other a loss or a gain. t. Say which of the Real accounts In No. 1 helonjf to the class ot accounts showing AsMets and l^iabililies, and which to the Loss and Gain HccuuhUi. Explain how you would distiniruish between them. 4. The books of original entry being the Cash Rook. Sales Hook, Invoice Book, and another for miscellaneous entries explain the use of each. fi. Draw out a form for a Bill Book, and explain its use. 0. Describe the mode of posting direct from the Cash Rook and Invoice Hook. f. Journalize the following: Day Book entries : (o) Began business with Cash flO.OOO, of which $3000 is borrowed from M. N. on our note. Also, C. D. owes us $400 on his note, and $.100 for which we hold no note. We owe K F. on book account $200, and O. II on our note $100. (6) Sold A. B. goods $900, and received on account, Cash $400, and R. S.'8 note for $200, on which he allows us discount 81.50 ft) Bought from Bank of Toronto for Cash, Hill of Exchange on City Bank, Ijondon, England, for $200 Stg., and remitted the sama to Benjamin Worth, lUoahaaUr, England, in settlement ot account Kzohaiic* aS llOJ. ^ BOOK-KKKI'INU. cIi>k1ii|{ th« tMinka tb« jttrtnmnf Ctp1t«l & A. B. and r D. »»r» In f *rtner*»i'(i On AccdiinU) Rnd the hoftn ami ipiin KCcoiinfM art) rw fnllown A. li.. Dr. |X0(>, <_>. t.!0«)0;C. D., Dr. 94U<), t'r tv'lOO ; Lohh and Uain, Dr. |I««rty actMXint, with a viuw lu find tliu nsi'\i\ or hmx, what must be flrat taken into con- idUeration, and what niiiat he done with it? 1 What dooM tlic Loss and (luin 10001011 contain when completed T What does th« Uul»nc« account contain f 8. U) a liusinc»8 wlioru the tri\n».'irt!on» ar* ^ome for cash, nnd nome on time, either hy note or not, name tlie iiccitnnt!^ wiinti will Ik; close)! into tiiihince, antl tlioM winch will he closed into Losh nml Uiiin, ftntin^ thv sido of tluHe two account!) to which the closinj^ enlricH will lie trimsfcrred. 4. Give an example of a naif for cash, one recen inif the huver'a note, and one on acc«iunt tJivo l>ny I look and .Journal fninos 6. Give an ox.aniple ofa purchase tnade l.v n«. wt- ).'ivinar in nnjTTient part cash, part our own note, pnrt another's uutc, and cheque on Bank for ijalatice. Uire Diky Book and Journal entrioa. 6 Journalize the followintr :— 1873, Nov. '25— Ueceived of A.B. his ncceptnnoe nt one month. 1460. 87— Pftid A. B.'8 Bill into Ifimk 101 diHconnt. Bill WOO 00 ' . M DiHceunt .... 2 tlT) 447 75 7. Why is !♦ that when a ronsipnment of (rood<< i'» made to «« to he wild on aoronnt of another, wo ilo not color in the Leiiifc ilie value of the (jooda, while, ii we con- tii^n (foods to another to be Bold by him on our account, we do enter the value njf the gpo9 Consignn^euts, remarks on 152 Day Book, remarks on 44, 60, 104 Days of (irace ' 144 Double Entry, fundamental principles of 28, 103 " how it differs from Single 28. IM), 102 Dr. and Cr., remarks on their use ll' 106 Drafts, forms of 2, 99, IOC '' journalizing 152 Due Bills, forms of 97 Equating of Accounts 19( Equal Debits and iVedits, a fiui imental principle of D. E 28, lOf Errorj, detection !»nd correction of 13J Examination Papers 1, H, jij, ir, ▼. H INDEX. I General Statement, lorms of, Single Entry 41, 56, 82, 88 " Double i::utry 120,158 (< Interest Account, remarks on ... . 128, 146 Inventory Bouk, reluarks on (52 invoice Book, reui;iil;s on .. Gl, 165 ;' formot' 173 Invoices, forms of 95 Journal, remarks on Ui4 Journal r>ay Book, remarks on 157, 164 " " form of 156,170 Journalizing, general dircctiims fur 105 Ledger, remarks on 28, 45, 107 Single and Douhle Kntry, hovVtliey (UiX:v 26, 'JO, 102 Accounts, remarks on closing 120 ord'-r of closiiiix i;ii Ledger Postings, proof of, ui Suii^le Entry 00 Liabiliiics, nature of 4, 6 Ml irchandise Account, how closed 130, 133 Merchandise Co, Accounts, example of . ib9 Notes and Bdls, remarks on ... 144 discounted 151, lf.3 ir)3 152 it «< «< <« " renewal of '* protested for non-acceptance protested for non-payuicut 152 Orders, forms of ....." ?(6 Object of a set of Accounts 3, 29, 102 Posting, on *. 4(5, 108 Promissory Notes, forms of ', 97 Proprietor's Investment Account, remarks on 20, 27, 4(j, 134 Receipts, forms of 92 Sales Book, remarks ou . , 165. form of 175 Shipments, remarks on ,. 151 Single Entry, how it differs from Double Entry 28, 90, 102 •• defects of 89 Speculative Property Accounts, remark.^ >.n 130 Statements, forma of, Si n,de Entry 41,50,82, 88 Double Eur rv 125, 1S8 Stock or Capital Account 20, 27, 46, i:U Trud Balwico, reniarktt on 123 " lormsof 122, 124 i, 14G (52 1, 165 173 05 J. (^AQC ^ Co'o. iletD (gbttcattonal cEork0. 144 1, 1;'3 ir)3 1;V2 152 92 105, 175 151 [), 102 89 130 2, 88 , 1S8 ^, i:u The Canada School Journal UAU KK.CKIVKU AS HONUHAUI.K MRNTIUN AT PAKIlt KXIIIBITION, 187)> \dopteU by nearly every County in Canada. Recommended by tbo Minister of Kluoiuion, Ontario. Recommended by tliet'ouncil of I'lililic Instruction, ^^uebec. Recommended by Cliief Supt. of Ilduoation, New Brunswick. Recommended by (^hief Supt. of Education, Nova Scotia. Recommended by Cliief Supt. of Education, Hritisb Columbia Reoommended by Cliief Supt. of Education, Manitoba. IT IS KDITKI) BV A Committee of some of tho Leading' Educationists in Ontario, assisten by able Provincial E'iit, ts in tlio Provinces of IJuuboc, Nova Scotia, New Bmnswick, Prince EdwunI Isluad, Manitoba, and British Columbia, thua tiaviuif eacl) section of the Duniiniun fully represented. tiUSTAlNS TWK.Vrs toUK I'.^UKS i)F UBADINO HATTBR. Live Editorials ; Contributions on important Educational topics ; Selec- tions — iieaiiing's for the School Koom ; and ^>oteb and News from each Pro- vinctt. Pkaotioal DiEPAKTMKN'r Will aiwa^s contain usenil hints on methods of teaching different subjects. Matukm.\tical DBFAurMKNT tflves solutions to difflcult problems also on Examination I'apers. OrFioiAii DBPAR'r.HBNT contains such regulations as may be issued from time to time. Subscription, $1.00 ]:>er animm, strictly in advance. Rbad thb Following Lbti'i.u kkou Joun GKUic>LiAF Whiitibr, iuk Fa- mous Ambrican Pobt. I have also received a No. of the " Canada School Journal," which seems to me the brightest and most leudabie of Educational Magazines. I am very truly thy friend, John Greenieaf Whittier A Club of 1,000 Subscribers from Nova Scotia. (Copy) i;iJt CATION Office, Halifax, N. S., Nov. 17, 1878. Messrs. Adam Millkr a Co., Toronto, Ont. Dear Sirs,— In order to meet the wishes of our teachers in various part* of the Province, and to secure for them the advantaj^'e of your excellent periodical, I hereby subscribe in their behalf for one thousand (1,000) copies at club rates mentioned in your recent esteemed favor. Subscriptions wilj begin with January issue, and lists will be forwarded to your oJiice in a few days. Yours truly, David Allison, Chief Supt. of Education. AddrMss, W. J. OAGE &CO., Toronto, Canada. '^l' 5». J. Olagr & Co'e. |letD €bucntional aKorke. HAMBLIN SMITH'S MATHEMATICAL WORKS. Authorized fur usu, and now used in nearly all the principal Schools of Ontariu, Quebec, Suva Scotia and Manitoba. Hamblin Smitn's Arithmetic. An Advanced treatise, on the Unitary System, by J. Hamrlin Smith, M. A., of Gonville and C'aius Colleges, and late lecturer of St. Peter's Col- leife, Canibrid|fe. Adapted to Canadian Schools, by Thomas Fvirkland, M A., Science Master, Normal School, Toronto, and William Scott, B. A., Head Master Model School for Ontario. 12th Edition, Price, 75 Cents. KEY. — A complete Key to the abo»« Arithmetic, by the Authors. Price, $2.00, Hamblin Smith's Algebra. An Elementary Algebra, by J. TIamblis Smith, M. A., with Appendix by Alfred Bal!pertor of Iliffh Schools, Out., and Thomas Kirklanu, il. A., Scicncu Master, Nornml School, Toronto. "Ill our opinion the best Colloctioii of Problems on llie Aim-iivau Con tinent."— National TtAciiKua' Musthly, N. Y. Seventh Complete Editioii, - - Prioe. $1,00. Examination Papers in Arithmetic.--- Part J. By J. A. McLei>lan, M. A., LL. D., and Thos. Kirkland, M. A. Plaice, ----- 50 Centa. This Edition has been issueil at the rciiicst of a large number of I'ublic School teachers who wish to have a Cii'' k edition fjr tiie uso of thci: pupils preparing for admission to Hlsh bcuooi. Hints and Answers tu Examiaatiun Papers in Arithmetic. By J. A. McLELiiAN, M. A., LL. D., ar.d Tik.s. Kirklanu, M. A. Fourth Edition, - . - „ . $1.00 McLellan's Mental Arithmetic. ---Part I. Containing the Fundamental Rules, l-'racticns and Analysis. By J. A. McLhll.an, M. A., LL. D., Inspector High Scliuels, Ontario. Third Edition, - - . .. 30 Cents. Authorized for use in the SUwols of Nova Scotia. McLellan's Mental Arithmetic- --Part II. Specially adapted for Model and liigli School Students. Third Edition, - - - Pnce, 45 Cents. The Teacher's Hand Book of Algebra. By J. A. McLella.n, M. A., LL. D. Second Complete Edition, - - . $1.25. Teacher's Hand Book of Alfrebra,— -Part I. Prepared for the use of Intermediate StuJeiits. Price, - - - - 75 Cents Key to Teacher's Hand Book of Algebra. Second Edition, ... Price. $1.50. «E. J (&i\qt ^* Co'9 ^t\i) (Ebiicatiouai Wioxk^. NEW BOOKS BY DR. McLELLAX. The Teacher's Handbook of Algebra. Revised and enlarged. High Schools, Ontario. Price, By J. A. McLrllax, M. A., LL. D,, Inspector of $1.25 Teacher's Hand Book of Algebra.-- -Part i. Abridged Edition. Containing portions ot th« a ova guitable for Inter- mediatti Students. Price, Key to Teacher's Hand Book. 75 Cents. Prlce,$1.50. It contains over 2,500 Exercises, including al>out three hundred and fifty Mlved examples, illustrating every type of question set in elementary Alge- bra. It contains complete explanation of Homers Multiplication and Division, VFith application not given in the Text-Bool is to he found m any text-book. It contains what aole mathematical teachers have pronounced to be the " finest chapter on factoring that hay t'\ f apjMiared." It contains the latest and best methodic ol treatment as given bvthe great Miisters of Analysis. It contains the finest selections of properly classified equations, with methods of resolution and reduction, that has yet apjjeared. It contains a set of practice paj^wra made up by selecting the best of the questions set by the Liiiversity of Toronto during twenty years. It is a key of the methods, a repertoiy of exercises, which cannot fail to make the teacher a better teacher, and the student a more thorough alge- braist. Read the following notices from the leading authorities in Great Britain and United States; "This is the work of a Ca.iadian Teacher and Inspector, whose name is honorably known beyond the bounds of his native province, for his exer- tions in developing rind pr'^moting that adniimble system of public instruc- tion, which has placed the Doniinion of Canada so high, as regards educa tion, not only among the ?: Lish Colonics, Init among the civilized nations of the world. \Vp i:; ;i . o work in this country that exactly occupies ..e' ;.r; ., . W>:\. is not merely a text book of Algebra, in ' \ . t: i,-' l of Methods for Teachers, illustrating the > t t;"tD »TUDKMtt PRKPARI.NO FOR exAMiN.vno.sb. 1. The history is divided into periods in accurdancu with thu gtea.t na- tional changes that have taken place. 2. The history of each i)eriod i.s ^iven topically instead of in chronolog ical order. 3. Examination questions are given at the end of each chapter. 4. Examination papers, selected from the otlicial examinations of the different provinces, are t,'iven in the Appendix. 5. Student's review outlines, to enable a student to thoroughly test his own progress, are inserted at the end of each chapter. 6. Special attention is paid to the educational, social and commercial progress of the country. 7. Constitutional growth is treated in a brief but comprehensive exer- cise. t^ By the aid of this work students can prepare and revjew for exam- inations in Canadian History more quickly than by the use of any other work. Epoch Primer of English History. By Kkv. M. Crkioutoin, M. A., Late Fellow and Tutor of Mertou College, Oxford. Authorized by the Education Department for use in Public 8chool«>, and for admission to the High Schools of Ontario Its adaptability to Public School use over all other School Histories will be shown by the fact that — In a brief compass of one hundred and eighty images it covers all the work required for pupils preparing for entrance to High Schools. The price is less than one-half that of the other authorized histories. In using the other Histories, pupils are compelled to read nearly three times as much in order to secure the same results. Creiifhton's Epoch Primer has been adopted by the Toronto School BoMd, and many of the principal Public Schools in Ontario. ^. (Sage S: do'e |lcto (Ebiuaiioital QHorke. Authorized foi* use in the Schools of Ontario. The Epoch Primer of Enghsh History. By Rf.v M. C';iEioiiToN, M. A., Lato rcllow and Tutor of Merton Collefre, Oxiorl Sixth Edition, - - • - Price. 30 Cents. Most thorough. Abkrdfrn JncRVAi.. Tliia xolmiic, taken with tlv rifrhf small voIiimeR rontaininp the ac counts of the dilVeronf, rjiochs, pirHcntN what may l)e rofjardcd as the inoHt t.horotijrh course of elementary Kn;ilish History ever puViIished. What was needed. Torcnto Paii.t guhw. It is just mich a manual as is needed by public school pupils who are poiri'^ up for a llip^h Sriiooi ooiu-e. Used in separate schools. M. Stafford, Priebt. We arc usm^ tliis History in oiir Convent and (Separate Schools in Liiid- i»y. Very concise. IIamilton Timbb. A very concise little book that should be used in the Schools. In Its paj>c8 will be fouitd incidents of Entjlish History from A. D. 43 to 1870, In* terustin^ alike to young and old. A favorite. London Advrrtihfr. Tlio book will prove a favorite with teachers preparinpr pupils for the entrance exaniinarions to the High Schools. Very attractive. 'Rritisii Wnio, Kisoston. Thi ? littlt book, of one hundred o'.d forty patres, presents history in a very attractive shape. Wisely arranp-od. Canada Prbsbttbrtan. Th epoch chosen for the division of English History are well marked —not mere artificial milestones, arbitrarily erected by the author, hut reaj natural landmarks, consisting' of great and important events or remarkable changes. Interesting:. V ARMot-Tn Tribi-nr, N'ova Scotia. With a iiorfect freedom from all looseness of style the interest is so well sustained throuj^^hout the narrative that those who commence to read it will lind it ditticult to leave off with its perusal incomplete. Comprehensive. Litfrart World. 'I'lie special value of this historical outline is that it gives the reader a comprehensive view of the course of memorable events and epochs, a£l. J. (f&agc ^ iCo'^. ^UU) cuiualuuial iLiUovkd. THE BEST ELEMKNTAUY TtXT-BOOK OF THE YEAU, Gage's Practical Speller. A AlAMAL OF bl'liLLING AND DICTATION. Price, 30 Cents. Sixty copies ordered. Molnt Fouest Auvi^catb. After earetiil iimiHJCt on \vu viiih(i»iuiiiij;ly proiiuuiicu it tliu bust spull- injf book ever in uac ill our pultlic sohoola. The I'ructical Spoiler sociirus an catiy access to itM con tun til by thu vury syHtuniutiu arrun^oniunts of the vvordH in topical clusws ; a purnianunt inipiusision on thu niuinory by the tre(|uent review of dilticult words ; and a »a\ in;; of time und etVort by the selection of only such words as are difficult and of common occurrence Mr. Reid, II. S. Master heartily reconununds the work, and ordered some sixty copies. It is a l)ook that should l)e on every business man's table as well aa in the school room. o Is a necessity. Prksb. WiT-sisH, Halikax. We liave already had repeated occa.slon to speak hi^'hly of the Kduca- tional Series of which this book is one. The " ISjKjller" is a necessity ; and we have seen no book which we can recommend more heartily than the one before us. o GrOOd print. Bowmanvillk Obskrvbr. The '* Practical Speller " is a credit to the publishers in its >,'enural jret up, classification of subjects, and clearness of treatment. The child who uses this hook will not have damaged eyesiyht through bad jirint. What it is. Stkatiiroy Aob. It is a series of (Traded lessons, containintr the words in K*-''it)ral use, with abbreviations, etc. ; words of similar pronunciation and different sihjIU ing a collection of the most ditlic-ilt words in the lan;,'uatfu, and a number of literary selections which may be used for dictation lessons, and commit" ted to memory by the pupils. Every teacher should introduce it. (^anadia.v Statesman. It is an improvement on the old spelling book. Every teacher should introduce it into his classes The best yet seen. Colcukstkr Hvs, Nova Scotia. It in away ahead of any"8peller"that we have heretofore seen. Our publio schools want a ^''ood spcUiiiif book. Thu publication before us is the best we have yet seen. ly the result of wide experience in the scholastic profession." in Manual of Drill and Calisthenics for use Schools. By J. L. HrroriE9,Public School Inspector, Toronto, Graduate of Military School, H. M. 2»th Regiment. Price, 40 Cents. The work contains : The Squad Drill prescribed for Public Schools In On- tario, with full and explicit directions for teaching it. Free Gymnastic Ex- ercises, carefully selected from the best German and American syatems, and arranged in uropcr classes. German Calisthenic Exercises, as taught by the late Colonel Goodwin in Toronto Normal School, and in England. Several of the best Kindergarten Games, and a few choice Exercise Songs. The instructions throu^^hout the book are divested, aa f ar as possible, of uivecessary technicalities. " A most valuable book for every teacher, particularly in country places- It embraces all that a school teacher should teach his pupils on this subject. \nv teachejr can use the easy drill lessons, and by doing so he will be con- ferring a benefit on his country."— C. Radcliffr DbarnaIiT, Major First Life Guards, Drill Instructor Normal and Model Schools, Toronto. rf m. S- ;raniiiiiir jmiilisliud tlier*!. ilu inunediai'ly sent, .vlasv)ii s. The chap- ters on the analysis oi dittK-ult sentences is <.uce the work far lioyona any Knglis.'i lirannnar hitherto before tlie Canadian pub lie."— Alex. iSiuis, M. A., 11. M. 11. S., Oakville. English Grammar Practice. This work consists of ih« Exercises appcmled to thp " Shorter Kn<;li8h Grainuiar," put)lish(!d iti a sejmiuie form. They are anunjiea m pro>fre«;sive lessons in suon a manner as U) Uv. available with almost mny text book of Enjflish Oi"aunnar, and tn.l.u the ii'^vriur by easy staices fnnn the simplest En;rlish worK w the most tiitlicult coastructious in the language. Price, 30 Cents. Outlines of English Grammar. Tiiwse elementary ideas are reduced to rcj,'uln r form by means of careful definitions atid piain rules, illusimtuu by abundant and varied examples for practice. The learner ts made acijuainted, in moderate measure, with the most important, oi the oMer lorni:^ of ijlnjjlish, with the way in which woitls are constructed, and with the elements of which modern Englisii is made up. Analysis is treated so far as to yive the power of deahng with sen- tences of plain construction and modemte diiiculty. in the English Grammar the same subjects are preseiiied with much prcator fulness, and carried to a inoi'c advanced and dirticult siaye. Tlie woriv contains ample materials for the reqiiiienients of ComiJetitive Examinations leaching at least the standard of the Matriculation Examination of the University of Londoo. The Shorter English Grammar. is intended for learners who have but a limited amount of time at their dis- posal for Enyiish studies ; but the experience of schools in which it baa been the only English Grammar used, has siiown that, w!ien well mastered, this worlc also is sufficient for tiio Londoo Matriculation Examination. fia Jf 6itnc & €00. licto (Kbucational cBorke. \ / BKST AUTHOUIZliDLLLML.NTAKVTLXT-UUOKS IN GRAMMAR. Revised Prico, Ed. Miller's Language Lessons. 25 Cents. PHUOrH or Till HUPKRIUKITY OK MILLKR'B REVI8KU EDITION OVER ALL OTIIKKH. Its eiiormouii sale. Nearly two humlrod thousand have hee/i koUI within the last four years. Miller's Hwiiitoii's is authorized by the Education Department for use in the Schools of Ontario. Only Kdition adopted by the I'rotestant Hoard of Education of Montreal, a:id used in many of the [)riMcipal Schools of the Province of (Quebec. Only Edition used in the Schools 01 Newfoundland. Oidy Kdition adopted by the Supt.ot Education for theSchoolsof Manitoba. Miller's Keviued tiwintou is used in nine-tenths of the principal Schools of Ontario. Only Edition prepared as an Introductory Book to Mason's Grammar, both having the same ilclinitions. A TyoKOUOli EXAMINATION UIVKN. To the President and Mcmhors of the County of Elgin Teachers' Associa- tion : In accordance with a motion j)aiised at the last re^jular meeting of the AsRociation, appointing the undersigned a Commiltce to consider the re- spective merits of different English Grammars, with a view to suggest the most suitable one for Public Schools, we l)eg leave to report, that, after ful- ly comparing the various editions that have been rcconunended, we befieve that "Miller's Swinton's Language Lessons "is the best adapted to the wants of junior pupils, and we would urge its authorization on the Govern- ment, and its introduction into our I'ubiic Schools. Signed, A. F. Ui'TLEr, Co. Inspector. J. McLkan, Town Inspector. J. Millar, M. A., Head Master St. Thomas i^ollegiate institute. A. Steele, M. A., " Orangi.'ville Iligli School. N.Campbell, " ('o, of I'lltcin ModeltSchool. It wag moved and seconded that the report lie received and adopted. — Carried unanimously. To avoid mistakes, ask for Miller's Swinton's. Mason's Outlines of English Grammar. AUTHORIZED FOR USE IN SCHOOLS. New and Improved Edition. For the use of Junior Classes, by C P Mason, B. A., F. C. P., Fellow of University College, London. Sixth Enerlish, and fourth Cajpadian Edition, price 45 cts. From the Daily Globe, Toronto. Mr. C. P. Mason, whose excellent " English Grammar" is now the author- ized text book in the schools of Ontario, has prepared anrl issued a more el- ementary and much-needed work entitled "Outlines of English Grammar." The text of this work is substmtially the .same as that of the larger treatise in both matter and form, except that the very elaborate notes in the latter ar« either omitted or very much reduced in extent. «p /"•y* Wi. J. d^nqt ^ Co'e |lc^ (^bttratbnal ^orke. FOR THE USE OP INTKRMEDIATE STUDENTS AND TEACHERS. Gage's School Examiner, Of Sciknon Aifn Litrratith^. A Magazine for the School Itoom and Htudy, contalnlnflr Examination Papers on the lubjects tauifht in the linth anti Public Hohools, and design- ed for the use of Teachers in conductinn- .Montiily Kxaininations, and in the daily work of the School Room, and for the use of bludents propai in^ for the fntemudiate atui all Ojjicial KxaniinatioiiH. In addition to Orifiinnl Papers prepared hji Spfcialistit on the various subjects, valuable selections will be made from tho University, HlK^h School and l'iil)Hc School Kxainin- ations in Kurope and America, as well as from Normal School and other Examinations for Teachers, both Professional and Non-professional. Sub- scription, ?>1.00 per year -payable in advance. Addrbhs— W. J. GAGE & CO., Toronto, Canada. Bro. flalward, Prin. Chris. Bros.' School, KinrfHton, Am much pleased with the plan, arranecment, and matter of Oajfe'ii School Examiner, and tnist it will obtain lue generous patronage of all earnest educationists. S. Biirwash, Colbome. It is Just what we wanted. I have no doubt of its complete success. L. Oilehrist, Woodville. I think it an excellent periodical, especially for Teachers wbo hold Monthly Examinations. r IT. W. Rutherford, Port Pnwan. I find it a very useful Journal in School work and cannot afford to he without it. James McRrien, I. P. S., M;irtle. The " School Examiner " i.s rapidly winning its way into nearly all the schools. George Harper, Anchorage, Wisctmnhi, U. S. It is attractive in form, neat and handsome in appearance, and, in my humble opinion, contains more solid and useful matter than any similar Journal in the United States. D. R. Boyle, West Arichat, C. R. ^ Indeed, the solution of No. 2 Arithmetic, in the April number is alone worth the mihscription price. ®H. J. ©itgc L in Cias.sics, Univ. Tor. Price, ----- 50 cents. Csesar ; Belium Britannicum. By C. P. Mulvany, M.A., Scholar and tlrst Honor m-'i in n:i*sir-«. T.C.D. Price, ----- 50 cents. Cicero Pro Archia. By D. C. McHeury.M.A., Principal, Oobourg Coll. Institute. Price, ----- 50 cents. Cicero Cato Major. With Introduction hy Prof. JIutton, Pi-of. Clas.-,i.;s, Uiiiversity Coll., Toronto, [in press.] »♦ OTIJKKS IN PHKFARATIOy, y I t Xlie Oanada SeKbol Journal HAS RECEIVED j4m Honorable Mention at Paris Exhibition, 1878. s Recommended by the Minister of Education, Ontario. Recomineniled by tlie Council of Public Instruction, Quebec, Recommended by Chief Supt. of Education, N. Brunswick. Recommended by Chief Supt. of Education, Nova Scotia. Recommended by Chief Supt. of Education, B. Columbia. Recommended by Chief Supt. of Education, Manitoba. IT IS EDITED BY A Committee of some of the Leading Educationists in Ontario, assisted by able Provincial Editors in the Vrovinces of Quebec, Nova Scuiia, New Brunswick, Prince Edward Islamt, Manitoba, find British Columbia, thus having each section of the Dominion fully represented. Contains Twenty-four pages of Reading Matter; Live Editorials, Contributions on important Educational topics ; Selections — Readings for the School Room ; and Notes and News from each Province. PRACTICAL DEPARTMENT will always contain use- ful hints on methods of teaching different subjects. MATHEMATICAL DEPARTMENT gives solutions to difficult problems also on Examination Papers. OFFICIAL DEPARTMENT contains such regulations is may be issued from time to time. y^ Subscription^ ^ 1. 00 per annum, strict/y in advatui. A Club of 1,000 Subscribers from Nofa Scotia, (Copy) Education Office, Halifax, N.S., Nov. 16, 1878. Messrs. Adam Miller & Coi, Toronto, Ont. Dear Sirs, — In order to moot the wishes of our teachers in various parts of the Province, and to secure for them the advantage of your excellent periodical, I hereby subscribe in their behalf for one thousand (1,000) copies at club rates men* tioned in your recent esteemed favor. Subscriptions will begin with January issue, and lists will be forwarded to your office in a few days. Yours truly, DAVID ALLISON, Chief Supt. of Education. Redd extract from letter from the famous American Poet, ^oku Greenleaf Whittier: — I have also received a number of the '* Canada School Jour- nal," which seem to me the brightest and most readable of £du- cational Magazines. I am, very truly, thy friend, JOHN O. WHITTIER. AdSrwi W. y, OAOS db CO., TORONTO, CANADA. GS-aipe's Soliool Sxamiuer. FOR THE USB OF INTERMEDIATE STUDENTS AND TEACHBB8 A magftzine for the School Room and Study, contaiulug Exainina tlon Papers on the subjects taug) t In th« High and Publlf ScLdoJa, and desuEued for the use of Teachers in conducting Mont}i y Bxam- inatior.8, and in the daily work of t> e School Room and for the use of Students preparing for the Intermediate and all OfflcicU Examina- tions. In addition to Original Papers prepared by SpeeieUiaU on the various subjects, valuable Bclections will oe nuUie from the Univ. rsity, High School, ai d Pub'ic School Examinations in Europe and Ameiioa, as well as from Normal School and other Examinations for Teachers, both Brofessional and Noiirprof essional. xsaxrjBiD uBTci OV BA.OK X.rCOM"r>C. Subsoription $1.00 per year— payable in advance. " Am much pleased with the plan, arrangement, and mattei of QaoB's School Examtnkr, and trust it will obtain the generous pat- ronage ot all educationists. — Bro. Halwanl. Frinoipal Ohristian Brothers' School, Kingston " It is just what we wanted. I have no doubt of its complete suc- cess.''— 8. Burwash. Colboroe. " I think it a» excellent pirlodical, empecialiy for teachers t>.io hold Monthly Exnminations."— l7 Gilchrist. Wood vi lie. " 1 And it a very useful Journal in school work, and canno' afford to be Without It." "W. W. Rutherford, B A., Port Rowan. **It is attractive in form, neat and handfome in appearance, and* in my humble opinion, contains more solid and u^-eful matter than any stmilar journal in the Uniied States."— Qeorre Harper, Anchorage, Wis., U.S. Indeed the solution of No. 2 ATithmetle, in the April num*-