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Mapa, plataa. charta, etc., may be filmed at different reduction ratioa. Thoaa too large to be entirely included in one expoaure ara filmad beginning in the upper left hand corner, left to right and top to bottom, aa many framea aa required. The following diagrama iliuatrate the method: Lea cartea, planchea, tableaux, etc., peuvent Atre filmte A dea taux da reduction diffArenta. Loraque la document cat trop grand pour Atra reproduit en un aeui cilchA, 11 eat fiimA i partir de i'angle aupAriaur gauche, de gauche A droite, et de haut en baa, en prenant ie nombre dimagea nAcaaaaira. Las diagrammea auivanta iiluatrent la m^thoda. irrata to pelure. nd D 32X 1 2 3 1 2 3 4 5 6 MANl th: Busines! I Privat Authc MANUAL OF BOOK-KEEPING THEORETICAL AND PRACTICAL. — FOR THE USE OP STUDENTS IN Business Colleges, Commercial Departments, High Schools and Academies, :• ALSO — Private Students without the aid of a Teacher, — BY— ■ D. J. BANNELL SAWYER. Author of ''^Text Book of Business Writing -^ " Original System of Penmanship / ** Studies for Real Ltfe /' ' '"'■Universal Shorthand^^ Etc. SECOND EDITION. OOPYRIQHTED. OTTAWA, ONT: PUBLISHED BY THE COLLEGi:, 1889. „ '1 ■. % i JAN 2 1 1544 Entered according to Act of the Parliament of Canada in the year 1889. l)y D. J. Bannf.ll Sawyer, in the Department of Agriculture, at Ottawa. ■if r», i" . .:.', ■ '■ \ ,. ifflku » ■<• I i ^ tl» l^p^b PREFACE. SECOND EDITION. Little, by way of preface to a book, is needed now-a-days. The reader can generally write a truer estimate of a book than its author. However, the author believes this book to be practical and useful, and if others find it so, he will be amply repaid for the burden of its pro- duction. It is not yet what he wishes it to be, and yet, there is enough of it to be of great service to anyone desiring a practical knowledge of accounts. The first 96 pages should be thoroughly understood before attempting to write up the sets. We hereby gratefully acknowledge the many favors received at the hands of the public during the past fifteen years of authorship, and especially for a very liberal patronage during the year just closing. In the hope that this edition may be of still greater use to the young people of Canada than the former one, I remain. Very respectfully, BANNELL SAWYER. Ottawa, 20 November, 1889. COMMERCIAL ABBREVIATIONS. FREQUENTLY USED IN ACCOUNTING, &c. I Acct. — Account. 2 Acct'nt. — Accountant. 3 Amt. — Amount. / / 4 Ans. — Answer. 5 Agrmnt. — Agreement. > 6 Apr —April. 7 Aug.— August. 8 Bbls. Barrels. > 9 Bk.— Book. 10 Bot.— Bought. 11 Brot.— Brought - J 12 Blk— Black. ' 13 B. Ex.— Bill of Exchange. 14 B. En.— Bill of Entry. 15 B. L —Bill of Lading. 16 Bal. — Balance, 17 B. P. B.— Bank Pass Book. 18 B. B.— Bill Book. 19 B. S. B.— Balance Sheet Book. 20 B. Rec— Bills Receivable. 21 B. Pay.— Bills Payable. 22 Bd. Pay.— Bond P.iyable. % COMMERCIAL ABBREVIATIONS — ( Continued). C of D. — Certificate of Deposit. C. O. D.— Collect on Deliv-ry, 33 Ck,— Check. 24 Ck. B— Check Book. 25 Cap. — Capital. 26 Cerlf. — Certificate. 27 C. B.— Cash Book. 28 29 30 Co — Company. 31 ConsRt. B. — Consignment Book. 32 Com — Commission. 33 Consgt. — Consignment, 34 Cwt. — Hundred Weight. 35 Chgd.— Charged- 36 Cr. — Creditor. 37 Cts.— Cents. 38 D.— Pence. 39 Dec. — Decenj'uct. 40 Dr. — Debtor. 41 Doz. — Dozen. 42 D. B.— Day Book. 43 Ds. — Days. 44 Dft,— Drafts. 45 Dis. — Discount. 46 Do — Ditto or The Same. 47 Du.B.- Due Bill, [ex"td] 48 E & O. E. — Errors and Omissions 49 Ea. — Each. 50 Exch — Exchange. 51 Exp. — Express. 52 Entd.— Entered. 53 E — Example. 54 Eeb. — February. 55 F, O. B. Free on Board. 56 Fol— Folio, 57 For. Foreign. 58 Frt.— Freight. 59 Gal. — Gallon. 60 Gen. L. — General Ledger, 61 Hhd.— Hogshead. 62 I. B. — Invoice Book. 63 Hun —Hundred. 64 i. e. — That is. 65 Inst. — Instant. 66 Int. Interest, 67 Inv. — Invoice. 68 Invty. — Inventory. 69 J. — Journal. 70 J. F — ^Journal Folio. 71 Jan. — Janunry. 72 Lbs — Pounds. 73 L. B. Letter Book. 74 L. F — Ledger Folio. 75 L. & G. — Loss and Gain. 76 M.— Thousand. 77 Mar. — March. 78 Memo. — Memorandum. 79 Mfg.— -Manufacturing. 80 Mos — .Months. 81 N. B.-Noie well. 82 No. — Number. 83 Nov. — November. 84 O B- Order Book. 85 O. I. B— Outward I. B — 86 Oz — Ounce. 87 P.— Page. 88 PP.— Pages 89 Pes. — Pieces. 90 Pd — Paid. 91 P. C. B— Petty C. B. 92 Per. — By. 93 P. B.— Pass B. 94 P. O —Post Office, 95 Pol.— Policy. 96 Pkg. — Package. 97 Prem. — Premium. 98 Pt, Pint. 99 Prox. — Proximo — next month. 100 Ql. — Quart, 101 Qr. —Quarter. 102 Reed — Received. 103 Recpt — Receipt. 104 Reg. — Regular or Register. 105 Ro — Right hand folio. 106 R. B. — Receipt Book. 107 R. R.— Railroad. 108 Ry. — Railway. 109 Sat. — .Saturday. no Sec. — .Secretary. 111 SB. — Sales Book. 112 .Shipt — Shipment. 113 Sq. — Square. 114 St. — Street. 115 Stg. — Sterling. 116 Sunds. — Sundries. 117 T. B — Trial Balance, 118 Thurs. — Thursday. 119 Ult. — Ultimo — last month. 120 Viz — namely. 121 W B,— Way Bill. 122 Wed — Wednesday. 123 W t. — Weight. 124 Yds.— Yards. 125 Yr.— Year. 126 @ — at. 127 V — check mark. 128 % — per cent. 129 J — Number. 130 $— Dollars. 131 £— Pounds J 4 dollars. 132 Vs. — Versus — against, 133 = — Sign of Equality. 134 F. O. C. -Free on Cars. !^' 4i^ !^' HOME WORK. The student on beginning his course should set to work to master all home work indicated in this Manual. By faithful plodding at home during evenings — studying up "final exams," posting work gone over during the day, etc., etc., — the indus- trious student may greatly shorten his term of attendance at the Col- lege. Those who are anxious to shorten their stay, can nearly double, by home study, the work of the term. To faithful plodders we atta( h the "white seal" to their Diploma, upon graduation, in addition to the "Scarlet Seal" attached to all Diplomas issued. An examination will be given on this work when a student seeks honors. 1. Student began business with capital of $5000. At the close jf the year his books exhibit the following facts : Cash received $15,000; Cash paid out $12,000 ; A.B's afc Dr. $1500 ; Cr $2600 ; B. C ; Dr. $2^00., Cr. $1200 ; C. D's Dr. $795 ; Cr$5oo; D.E's Dr. $830.75; Cr. $530. Inventory of Mdse on hand $3550; Student owes E. H. $1100. Required, the net capitr.l at closing, and the net gain during business. 2 . Jones and Smith have begun business with the following re- sources * Cash $2000; Promissory Notes $1250; Mdse $5320; Real Estate $9,500 : Personal accounts (balances) due to firm $1,500. At the close of the year their resources and liabilities are as follows: Cash, on hand $1250; Cash in Bank of Ottawa $2000. Promissory Notes $4800; Merchandise, $5750 ; Real Estate $12,500. Due to firm on Personal Accounts $6,500. Due by firm on their notes issued and drafts accepted $875. Amount due by firm to persons on ajc $1675. Required, the net capital at commencing ; at closing ; and net gam. HOME WORK TESTS. General I. — What is book-keeping ? 2. — How many leading methods are there ? 3. — What are the main bouks used ? 4. — What does each contain ? 5. — What is an account ? m. 6. — What other books are used in account keeping? 7. — Into what two classes may we arrange accounts ? 8 — Give three rules for debiting and three for crediting ? 9. — What is generally included under the title Expense ? 10. — What is generally included under the titles Cash, Mdse., B Rec, B, Pay., Interest and Discount. Terms. I. — Explain what is meant by Stock Account, Private Account, Cash Account, Balance Account, Representative Account, Personal Account, Expense Account, Loss and Gain Account. 3. — Define Draft, Note, Receipt, Bills of Exchange, Resource, Liability, Loss, Gain, Consignee, Consignor, Cheque, Pro- ceeds of Note. 3. — Trial Balance ; Balance Sheet, Posting, Blank Credit, Invoice, Drawback, Bill Book, Consignment, Shipment. 4. — What is an Acceptance, Due Bill, Lease, Manifest, Bill of Lad- ing, Order, Mortgage, Bond ? 5. — When are Exchange, Premium, Collection, Storage and Com- mission Accounts opened. Skill. I. — Upon closing Mdse. account, how do you ascertain the Gain or Loss ? 2. — When do we debit, and when crediN the following accounts : — Cash, Mdse., Bills Payable, Loss and Gain, Interest, Stock, Private, J. Jones ? 3. — In making out your statements preparatory to closing the Ledger, where do you place the following items : — Mdse. on Hand, Balance of Real Estate, Coal for use of Store, Money in Bank, Interest receivable. Balance of Interest. 4. — Mark off four columns with the following headings : — Resource, Liabilitv, Loss, Gain, and put the following accounts into the column to which it belongs : — Cash, Mdse., Bank, Bank Stock, Real Estate, Expense, Rent, Freight, Shipment, Con- signment, J. Jones, S. Evans. 5. — How far is the Trial Balance a test of correct work ? To Journalize. I. — Sold Mdse. for cash $150 « » 2. — Sold Mdse, to J. Jones for cash, $750. 3. — Sold S. Evans on ac, Mdse., invoiced at $500. 4. — Bot Mdse. for cash $200. 5. — Bot of J. Jones, Mdse., for cash, $135. 6. — Bot of S. Evans on ac, Mdse., $225. 7. — Bot Mdse. for note $50. 8. — Bot Mdse of R. Wood, for my note at 10 days, $35. 9. — Sold Mdse. to S. Smith, for check on Ontario Bank, $35. 10. — Bot Mdse. ot J. Swift, for check on Ontario Bank, $20. II. — S. Woods deposited cash in Bank of Toronto, $200. 12. — S. Woods withdraws from B. of T. $100. (Write check.) , 13. — S. Swift gives J. Jones his note, at 3 months from to-day, for $521. (Write note.) 14. — Geo. A. Cox, of Peterborough, draws, to-day, a sight draft for $57 on Geo. Wilson & Sons, Port Hope. (Write draft.) 15.— Bot of J. W. Flavelle, 200 bbls. of flour @ $6 per bbl. Gave $500 in cash, my note for $300 ; balance to remain on ac. 16. — Sold J. W. Flavelle 1200 yds. broad cloth @ $2.50. Rec'd in payment, cash $500, his note for $300 j balance paid by an order on Hawley Bros. 17. — Wm. Dunn and I exchange notes, $250. 18. — Lost a $10 bill. 19. — $10 bill found and returned by Willie Snyder, who receives for his honesty $1.25. 20. — Discount your own note at College Bank for $700 (q), 3 mos. rate 7 %• FOR DRILLS. 1. Transaction. — Peterborough, March ist, 1889. You borrow $30 from E. B. Stone, and give him your note for $35, at 30 days in payment. I. Write this note making it payable to order. 2. When will it be due. 3. What per cent, of amount borrowed does the interest equal 2. Transaction.— St. Thomas, March 5th, 1889. E. B. Stone has your note discounted at Bank of Toronto at 7% 1. Write endorsement. 2. How 1 'uch cash does he receive. 3. Transaction.— St. Thomas, March «.th, 1889. Sold J. B. Clarris, Esq., 20 yds. Silk at $1.50; 20 yds. S. Velvet at $2.50; 25 8 yds. B. Ribbon at 3oc. ; 43 yc^s Edging at i6c. Received in payment his check on Bank of Toronto, for amount of bill. I. Write out the bill. 2. Receipt it. 3. Write out check payable to order. 4. Indorse check making it payable to £. B. Snelgrove's order. 4, Transaction. — Toronto, April ist, 1889. John Macdonald draws a draft at 6c days sight on S. H. Blake, Toronto, for the bal- ance of his account. The draft is in favor of Russel, Forbes & Co., Ottawa. 1. Write the draft. 2. Accept it for S. H. Blake, date April 2nd. 3. Discount at B. of T, 7 ^/q. 4. Indorse it for Russel, Forbes & Co. 5. How much should R., F. & Co. receive. 5. Transaction. — John Macdonald, of Toronto, owes Russel, Forbes & Co,, Ottawa, $250, and Russel, Forbes & Co. owe James McLaren, of same place, $210. R. F. & Co. draw at 30 days sight on J. Macdonald in favor of McLaren for $2To, andat sight in their own favor, for balance. I. Write these drafts each dated May 1st, 1890. 2. Accept them for J. M. 3. Who will present the draft, R, F. & Co's. representative or McLaren's representative ? 4. Write R. F. & Co's. advice to J. M. 5. Write their letter to McLaren, 6. Transaction. — James Stevenson, Peterborough, encloses $150, Cash, to Williams & Co. , Toronto ; also a 90 day note dated April ist, 1889, for $100, asking premission to close his running account by a 60 day note. I. Write Stevenson's letter. 2. Write the 90 day note. 3. When is it due. 4. Write Williams & Co's favorable reply. 5. Endorse note for Williams & Co., payable to order of Jas. Kendry. 6. Find interest on this note at 6 7„« 7- Find discount at 7 '/o* RENEWING notes. (a) Suppose your note matures at the Bank of Ottawa for $100 and you cannot pay it, if it be renewed and intc.est added, your entry would be as below. See (a). The firm renewing the note need not make an entry, but should indicate in the B.B. Remarks' column the old note as retired by the renewal, and then enter the renewal in the bill book as received. (6) If the firm endorsing the note has had it discounted and they I • f O 9 retire it by check, they would make an entry as follows, at the same time drawing on you for face of old note plus the charges, see {l>) : (a) Bills Pay Dr $100. Inl. •• .... 5. To R. Pay $105. (d) Hills Rec. Dr $105. To bills Kcc. , . 100. " Interest 5. If the above transactions were put through the personal account they would stand as follows : (a) B. Pay Dr $100. ami Int- " 5. ('I) To Holder of Noie ^105. Holder of N. Dr $105. To B. Pay ' $105. («5) Student Dr $105 . and To Bank $100. (i) " Interest. ... 5. B. Rer. Dr $105. To Student $105. Suppose you had renewed one-half and paid cash one-half, by first method, entries would be as follows : [a) Bills Pay Dr $100. Interest ** 2.50 To Cash 50. " Bills Pay.... 52.50 {d) Bills Rec. Dr $52.50 Cash '* 50. To B. Rec. .... 100. '• Interest 2.50 NoiB.— If you had paid the charges on renewal In casli it would not have changed the /orm of this « ntry, but would simply swell the cash item by amount of ohargoa. PROMISSORY NOTES. 7. Find (i When does the paper mature? (2) Where and to whom is it payable? (3) From what date does it draw interest ? (5) What is.the rate ? (6) Which papers are endorsed in blank? (7) In full ? (8) With- out recourse? (9) Restrictively ? (10) How are payments on notes recorded? (11) Compute and verify the interest on all interest-bearing papers ? (12) What are days of grace good for ? FACE OF NOTE. Payments Endorsed on BACK OP NOTE. $1000. Peterboro', Ont., Jan. 4, 1889. Three years after date, I promise to pay to the order of George A. Cox, One Thousand Dollars, value received, with interest at 6 per cent, per annum. No. I. William William. March 4th, 1880. Received on within note, Two Hun- dred and Fifty Dollars. December 61 h, 1890. Received on within note, One Hun- dred and Ten Dollars. March '(th, 1891, Received on \\it1iin note. Two Hun- dred and Twenty Dollars. m 10 FACE OP NOTE. Transfer and Payment. Endoraeinni.ts on BACK OF NOTE $2CXX>. Peterboro', Ont., Jan. 4, 1889. Three years after date, for value received, I promise to pay to the order of Mann & Co., Two Thousand Dollars, with interest at 7 per cent, per annum, payable hplf-yearly. No. 2. John Fenton. Ufceived July 4th, 1889.Sevt!nty Dol- lars, interest on within note In full to date. J. MANN & Co. Pay to W. Williunis only, H. EVANS. January 4th 1890. received Seventy Dollars, in full for int rest to date. Received July 4th| 1890, Seventy Dollars, interest in full to date. Received January 4th. 18C1, Seventy Dollars, in full f r interest to date FACE OF >fOrfi. Transfer Endorsement and Paymouts Endorsed on B \CK OF NOTE. $3000. Peterboro', Ont., Jan, 4, 1889. Three years after date, we jointly promise to pay to George A Cox, or order, Three Thousand Dollars, value received, with in- terest at 6 per cent., payable annually. No. 3. Hall, Hall & Hall. Jaumiary 4Ui, \S'M. Keccived One Hundred and Eighty Dollars, for one yeara interest, iu full to date. Pay S. Evans, or order. GEO A. cox. Received Dec 4tli, 18:'0 Two Thous- and Dollars on within note. Pay A. L. Davis, or order. 8. EVANS. Received Jan. 4th, 1891. One Hun- dred anrl ^"V"ntv n-^'lTu.infnll to date. I. — Find the total purchases and sales. 2. — Find the sum of sold and unsold Mdse. 3. — Find the average daily purchases and sales. 4. — Find the net gain or loss. 5. — Find the average daily gain or loss, 6. — Average gain % on goods sold. 7. — Average gain or loss on total purchases. I. Mdse. 2. Mdse. 3- Mdse. 5,000 235 300 975 250 45 19 560 171 75 55 35 28 40 162 145 175 137 2,350 139 135 56 590 75 13 40 165 31 17 54 590 180 145 150 130 70 540 15,000 160 6,500 1,120 1,380 375 450 190 758 2,135 1.^9 189 133 170 650 1,561 120 Inventory, $4,573. Sales for 26 days Inventory, $2,135. Sales for 15 days Inventory, $11,250. Sales for 10 days. "»!• •rt i^a ■■1 "TH* met t^ 4- Mdse. u S. Mdse. 6. Mdse. 56,050 4,060 3.570 5.730 5.234 120 320 530 490 340 596 420 750 732 120 231 375 1,642 4730 3,275 1,310 1,112 2,150 2,135 4.320 1,737 130 105 420 506 133 133 2,147 731. 5.237 1,249 36s 763 1.463 431 1.375 1. 321 120 3.462 375 372 542 146 378 '-375 112 1,112 Inventory, $50,605. Inveniory, $1,060. Inventory, $4,650. Sales for 45 days. Saks for 60 days. Sales for 90 dys. CARP, CHEESE FACTORY, ACCOUNT KEEPING, AS ARRANGED BY BANNELI. SAWYER. ^ . C a' B 1 c 'v T3 e in V 3 < c c > s • s 1 u s s is ^ T is <—> a *—> •:: C/5 •^ ^ '* ;j^ Remarks. :3 140 129 145 120 1 6c 120 160 112 150 '25 152 127 1640 126 121 130 129 160 150 165 155 130 no 120 no 1606 Note;— The foregoing t.ible illustratrs the ruling of tlie Milk Register in an ordinary Cheese Factory Tlie milk's weight in jiounds is entered morning and evening below the owner's name and posted with price (wliere price is fixed) to credit of his account, at the end of each week. We give the form for what it is worth— if anyone has a belter method we would be pleased to hear from him. 12 RAPID CALCULATION OF TRADE PROFITS AND DISCOUNTS. We have compiled the following table3 to aid merchants in readily adding whatever profit they desire and as readily subtracting it. In either the simple or compound table, it may be seen that to deduct the same amount as was added, a different fraction is required. This new fraction is obtained by adding the numerator and the denominator of the old faction together for a new denominator — the old numerator remains. Example : — Add 40% = 2-5 =$1.40 ; deduct enough to reduce to cost 2 + 5 = 7 = 2-7. Now then 1-7 off $1.40 is 20c., therefore 2 7 is 40c., which leaves cost price. regular table of TRADE PERCENTAGES. r Increased by the Cost Inorensed by jier cent, of cost Retail Take oflf part Take off per Cost price jiart of cost that will ii);iko of Retail cent of Retail 1 Price that will make Retail Price. Price price to re- price to Restored. Retail Price. turn to Cost. return to Co8t.| $1 I 100 per cent. 2 00 H 50 per cent. $1 $1 'i 50 " I 50 'A 33* " $1 $1 H 33!^ " I 33* /T 25 " $1 $1 X 25 I 25 1-5 20 $1 $1 1-5 20 I 20 1-6 i6| " $1 •$l 1-6 i6f " I m 1-7 142-7" $1 $> 1-7 142-7 " 1 142-7 Vs I2i " $1 «i % I2i I 12^ 1-9 II 1-9 " $1 $( 1-9 II 1-9 " I II 1-9 I-IO 10 $1 $1 I-IO 10 I 10 I-II 9 I-II " $1 $■ i-ii 9I-II " I 09 I-II I-I2 8i " $1 $1 1-12 8* I o8i '-I3 79-13" • $1 $1 I-I3 7 9-13 " 1079-13 I-I4 71-7 " $1 $1 1-14 71-7 " I 07 1-7 I-I5 6* " $1 $• i-iS 6| I 06J I-I6 6i " $1 $1 i-i6 6i I o6i I-I7 5 15-17" $1 $1 1-17 51517" 105 15-17 I-I8 5 5-9 " $1 $1 1-18 5 5-9 " I 05 5-9 1-19 5 5-19 " $1 $1 1-19 5 5-19 " I 055-19 I-2C 5 $1 Z-aOHK-FOTTlSriD. ■ Di'duct fol- Cost Increased by the Increased by the Retail ; Deduct as fo lowing per Cost Price p.»r cent of Cost jiart of Cost 1 lows, to re- cent, of Re- Price. that will make that will make Price. turn to OoBl tiii to return Restored Retail price. Retail Price 66| per cent. Price. to Cost Price. 40 per cent. $1 f $1 66i 2-5 $1 $1 3-5 60 • •« I 60 3-8 37* " $1 $1 5-7 71 3-7 '• I 713-7 5-12 413 ' Si $1 2-5 40 I 40 2-7 284-7 " Si $1 f 75 I 75 3-7 426-7 " Si $1 4-5 80 I 80 4-9 44 4-9 '■ Si Si 5-6 83i " I 83* 5-II 45 5-11 " $1 $1 t 37* " I 37* 3-1 1 27 .3-11 " Sf $1 i 62i I 62i 5-13 386-13" $1 $1 i 87* " I 87* 7-15 46^ " Si i m*t i«i "I ly n le w Df )r :e is T ••J' STOCKS. The par value of a share of stock is usually $ioo A "Bull "is a speculator who sell^" short," expecting to make a profit by a decline in prices, A " Bear " is a speculator who sells " short," expecting to make a profit by a decline in prices. A " Time Sale " or purchase, made with the intention of speculat- ing in the " margm," or fluctuations in prices, without any design to actually deliver or take the stock, requires no investment, except enough to cover the margin. A " Put " is the privilege of putting or selling to the one who sells it a certain quantity of specified stock at a given price within a fixed time. A *' Call " is the privilege of calling for or buying a certain stock at a specified price within a given time. The seller of the " put " must be ready to buy, and of the " call " to sell, whenever called upon. The expression '* Long of Stocks " or a " Bull," means that you have bought expecting higher prices. A " Clique " is a combination of prominent operators, or their brokers, to carry stock up, each bidding higher so as to get control of it. The expression " Short of Stocks " or a " Bear," means that you have agreed to deliver stocks at some future time, by which time you expect lower prices. If a member of the Stock Exchange is unable to meet his engap:e- ment, the stock which he fails to receive or deliver is " bought in " or " sold out " UNDER THE RULE. A " Combination " is a number of operators, each placing a certain amount of money in the hands of one of their number, who takes full charge and control of the operation for their joint account, a division being made of the proceeds pro rata. When a stock has passed into the hands of a combination, and the BEARS having sold largely for future delivery, are short of the stock, the members of the combination can of course, make them pay any 14 price they choose for the stock they have agreed to deliver. A large advance is the result, and there is said to be a " corner " in the stock. STOCK EXCHANGE. A Stock Exchange is a body of men by whom the change of securities, for valuable considetation, is made. The members of the "'change" are admitted by election or ballot when vacancies occur, on payment of the admission fee, which in Boston is $2,000, Philadelphia $5,000, New York $10,000. Indeed a single memberbership in the N. Y. Exchange has sold as high as $32,5 ?o. There are iioo members in the " N. Y. 'Chaiige." A membership is transferable, and passes by descent, in case of the holder's death. Every Association prescribes its own rules and regulations. A member's word with regard to a contract, made during the ses- sion, must be as good as his bond . SHIPMENT AND MDSE. GO'S. REMARKS, WITH ILLUSTRATIONS Shipment Co. represents your interest in Mdse. or other property shipped by you to be sold on joint ajc and risk of yourself and other parties ; or it may represent your interest where you receive intelligence that other parties have shipped Mdse. to a third party, and that you are interested. The term shipment Co. is always and only applied to your interest or share in the shipment. Debits : — Shipment Co. is debited for your interest and share of the costs in the speculation when the shipment is made. The persons interested with you are debited for their share of Mdse. and the charges. Credits : — Ship't Co. is closed to, or by loss and gain. To close before an account sales has been received, you credit the Shipment Co. by Balance. MDSE. CO. is a fictitious name given to goods or other property received by you to sell on joint a/c. and risk. «i> IS Debits : — Mdse. Co. is debited to the shipper, when received, for your interest only, and the charges incurred on the full shipment. Credits : — The shipper is credited for your share in the goods (un- less settled for at the time of receiving them,) the same as though bought of him on account. Mdse. Co is credited foi all sales of the goods received. Each interested party is credited with his share of the net proceeds Closing: — Total charges deducted from total sales leaves the net proceeds. In Closing debit Mdse. Co. to your commission, to all charges not already posted, to the shippers for their net proceeds, and to loss and gain if you have gained. If you have lost then loss and gain is Dr. to Mdse. Co. When closing, should the goods be but partially sold, Mdse. Co. should be credited in the Ledger, by Inventory for your share only, of the Mdse. remaining on hand. The remainder of unsold goods belongs to the shipper. EXAMPLE^? SOLVED. Transaction. I. — Amos ships Ben. to be sold on joint ajc and risk, each J^ Mdse., invoiced, at $4,000. Insurance, $40. Journal Entry 2 Mdse, Co. Dr. . .$2115 To Amos. " Bank $2015 00 100 00 Journal Entry i. Ship'tCo. Dr.. ..$2015 Ben. '* .... 2015 To Mdse $4000 00 " Cash 30 00 Transaction. 2. — Ben., on receipt of goods pays, per check, $100 freight and cartage. Transaction. 3. — Ben. sells the Mdse.'' for $3,250, receiving in payment, check, $1,750, and note at 10 days for balance. Journal Entry 3. Bills rec. Dr $1500 Cash Dr 1750 To Mdse. Co. $3250 Journal Entry 4. Mdse. Co. Dr. .$1135 00 L. and Gain Dr 480 63 To Amos... $1534 38 " Com.. . 81 25 '4i 16 4- — Ben. renders Amos an account of sales, charging 2^ % Com. Total sales $3250 00 Freight, $roo. Com. @ 2}4 per c, $81.25 181 25 Total net proceeds $3068 75 Each one's net proceeds 1534 38 Each one's original yi of Invoice 2014 00 Difference— Each one's net loss $ 480 62 Transaction. 5. — What entiy does Amos make on receipt of account sales ? Journal Entry 5. Ben. Dr $1534 38 To Ship't Co $1534 38 Transaction, 6. — We will now suppose the Mdse. was not all sold, but that an account sales has been rendered, as above for what has been sold ; the Inventory of unsold MJse. accounts to $2,000. As all the entries would be the same as before, to the time of rendering the account sales, we will just show the last entries, and how to find the net gain or loss of each. Total sales $3250 00 Freight, $100, Com. @ 2)^ per c, $81 25 181 25 Total net proceeds $3068 75 Each one's net proceeds jf sales 2534 38 Each one's unsold Vi 1000 00 Each one's present interest $2534 38 Each one's original y{ 2015 00 Each one's share of net gain $ 519 37 Journal Entry 6. Journal Entry 7. Mdse. Co. Dr..$2i35 00 To Com ... ■ $ 81 25 " Amos... 1534 38 " Loss & Gain 519 37 Transaction. Ben. Dr $1534 38 To Ship't Co $1534 38 ( I ■; 7. — Amos' entry on receipt of Account Sales. f. TO THE STUDENT. The highest success is achieved by making the most of one's circum- stances, powers and opportunities. Ever bear in mind that no enterprise can be made a permanent success unless it be conducted systematically, as jvell as honorably. Do nothing without system. Method furnishes the key to all true progress. In the College you will have every advantage offered you to gain a knowledge of affairs which you will find, in after life, to be invaluable. When you enter upon your course of study, remember it is worthy of your closest application and best efforts. We give a thoroughly practical business education, and all who master it and heed our advice will be likely to be successful in the battle of life. Work must be your motto ; honest and well-directed " work " will develop a young man physically, mentally and morally. Labor is a university that does more for its students than Cambridge or Oxford, Harvard or Yale. Deter- mination, earnestness, devotion and courage are the great requirements of success. Remember the College motto, " This one thing I do,'' should be yours. Concentration of life-purpose is the need of the world. It is also necessary that a young person should possess "tact, push and principle" to reach the top round of the ladder of prosperity. In this direction we endeavor to point the student at the same time that we are imparting the elements of a thorough knowledge of accounts, and pen- manship and the ways and means of transacting business. An easy, elegant, legible, expeditious hand-writting is essential to the highest suc- cess. Your signature may thus be your best reference. Strive to make yourself familiar with the most concise and business like forms of expression. Punctuation and neatness enhance greatly the written page . Blots and erasures show a want of care. In learning the science of book-keeping it may at first seem misty and difficult, but to a decided, earnest student difficulties are but incentives to greater endeavor. Others have succeeded by diligence ; why not you ? Others have spanned the Niagai a of achievement; why not you? Remember in every dream of your life or your slumbers that "fortune favors the brave." " Animo et fide," courage and faith, should be the acting im- pulse of your every heart-throb. Be brave, and in all your work be cheerful. The earnest student must learn to do the work^ and the thoughtful teacher will endeavor to illustrate principles^ not simply to occupy him- self in showing the student how to work out each entry that may seem new to the learner. 2 1— BOOK-KEEPING. EXPLANATORY NOTES AND ILLUSTRATIONS. Book-keeping is the recording of business transactions so as to show the true state of each account There are two leading methods, namely, Double and Single Entry. The principal books us id are : Day Book, Journal, Ledger and Cash Book. Bill Book, Saleii Book, Personal Ledger are used when the business requires them. A man may select books that are best suited to his business. An account with a person, a firm or a corporation, is called a Personal Account. There are two sides to every account ; the heading being written in a large heavy hand above the space where the items appear. There may be a great many different accounts in a set of books, but they are easily divided according to their nature into two classes viz : — I. Fixed accounts, closing To (or By) Balance, which are Resour- ces or Liabilities ; 2. Fluctuating Accounts, closing To (or By) Loss and Gain, which are Losses or Gains. Journalizing is deciding upon and arrranging, the debits and credits in the Journal. The sums of the debits and the credits must be equal. RULES FOR JOURNALIZING. DEBITS. Debit, what we receive. " " costs us value. " the person who gets value from us. CREDITS. Credit, what we give out, " produces us value, the person who gives us value . m FURTHER RULES FOR JOURNALIZING. Stock, or Proprietors Account. Debited for liabilities assumed, withdrawals and net losses. Credited for investment and net gain. The difference shows net investment, present worth or insolvency. Closed " To (or by) balance." t 1 t 19 Cash. Debited for receipts. Credited for payments. The difference shows a resource of the balance on hand. Closed "By Balance." Mdse. Debited for cost. Credited for sales. The difference (when the property is all sold or Inventory added to the credit of the account) shows a gain or a loss. — A gain when the credit is in excess ; a loss when the debit is in excess. Closed " To (or by) loss and gain. Personal Accounts. (Accounts with persons.) Debited when they become debtor to us and we pay them. Credited when we become debtor to them and they pay us. The difference shows a resource or liability consisting of the amount we owe them or they owe us — a resource when the debit is in excess, a liability when the credit is in excess. Closed " To (or by) balance." Expense. Debited for cost or outlay. Credited foi returns (if any). The difference shows a loss. Closed, "by loss and gain." Bills Receivable. Debited for others notes and " acceptances " when received. Cred- ited when they are paid or disposed of. The difference shows a resource of other's papers on hand. Closed, " By balance.' Bills Payable. Credited with our notes and "acceptances" when issued. Debited when paid or redeemed. The difference shows a liability of our paper unpaid. Closed " To balance." Real Estate. Debited for cost and expense. Credited for Sales, Rents and Returns. The difference under same conditions as Mdse. The ac. count shows a gain or a loss. Interest, Discount and Premium. Debited for cost or when allowed to others. Credited for what it produces, or when allowed to us. The difference shows a gain, when credit is in excess ; a loss when the debit is in excess. Closed "To (or by) loss and gain." 20 Insurance. Debited for cost. Credited for whatever it produces, or allowi nces in our favor. The difference shows a gain or a loss. Conditions same as in Interest. Closed, *' To (or by) loss and gain." Shipments. Debited for cost value of goods shipped and for all other costs. Credited for returns or net proceeds. The difference shows a loss or a gain. Conditions same as Mdse. Closed *• To (or by) loss and gain." Consignments. Debited for charges and costs. Credited for sales. The differ- ence shows the net proceeds due to the Consignor. Commission. Debited for cost. Credited for what it produces, or allowances in our favor. The difference shows a loss or a gain. Conditions same as Interest. Closed, " To (or by) loss and gain." Storage. Debited for cost. Credited for what it produces. The difference shows a gain or a loss. Conditions same as Interest. Closed, " To ( or by ) loss and gain." Fixtures, Store and Shop Fixtures. Debited for cost. Credited for proceeds. The difference will generally show a loss. A gain may possibly arise. Conditions same as Mdse. Closed " To (or by) loss and gain." Bank, Railway and other Stocks. Debited for costs and assessments. Credited for sales and divid- ends. The difference shows a gain or a loss. Conditions same as Mdse. Closed " To (or by) loss and gain." Mortg\ge Receivable. Debited, credited and conditions same as Bills Receivable. Closed " By balance." Mortgage Payable. Debited, credited and conditions same as Bills Payable. Closed " To balance." Loss and Gain. Debited for losses. Credited for gains, either direct or through the closing of representative accounts. The difference shows a net gain 91 or a net loss — a net gain if the credit is in the excess : a net loss when the debit side is in the excess. Closed " To (or by) Stock," or " To (or by) partner's name." Partners' Accounts. Similar, to Stock. Each partner is debited to liabilities assumed by him, his withdrawals, and for his private account, if a loss. Credited for his investment and private account if a gain. The difference shows his net interest in the business — if the credit side is in excess, his present worth ; if the debit is in excess, his insolvency or indebtedness to the business. Closed " To (or by) balance." Private Account. If there is a single proprietor, debit his withdrawals from the business, of money, mdse., property or value of any kind. Credit with salary or allowance. Close into his capital account . An account is r " item or a collection of items under a distinct title. The balance of an account is the excess of one side above the other. When the debit side of an account is the larger, the account has a debit balance ; When the credit side is the larger, it has a credit balance. Accounts are divided into two classes : Fixed and Fluctuating. A fixed account is one representing property having a fixed value as Cash, Bills Receivable, J Jones, etc. A Fluctuating account is one representing property having a vari- able value, or representing expenses, as Mdse, Real Estate, Rent, etc. Fixed Accounts stand for either Resources or Libialities ; Fluc- tuating Accounts stand for either Losses or Gains. A Resource, also called an asset, is anything one (nans, and a Liability is anything one 07i>es ; it is a debt. Liabilities are either inside or outside. An Inside Liability is an obligation due to parties interested in the gains and losses of a business. An Outside Liability is an obligation due to parties not interested in the gains and losses of a business. A Loss occurs in business when goods are lost, stolen, destroyed or disposed of for less than their cost or value. 22 A Gain occurs when goods are found, or are sold for more than their cost price. Gross Loss is the sum of all the losses during a given time ; Gross Gain is the sum of all the gains during a given time. Net Gain is the Gross Gain with the Gross Loss subtracted. Net Loss is the Gross Loss with the Gross Gain subtracted. Net Investment is the difference between the sum of the Resour- ces and the sum of the Liabilities of a firm, on the commencement of a term of business. Net Worth minus Resourcils = Liabilities in a business at any time. Present Worth is what a firm is worth at the present time : It is found by subtracting the outside Liabilities from the Resources ; as is done in the Balance Account in the Ledger. Another method is to add the Net Gain or subtract the Net Loss, from the Net Investment ; as is done in the Stock Account in the Ledger. Insolvency is the financial condition of one, who not only cannot pay his debts, but whose outside liabiliLies are greater than his Resources: Present Insolvency may therefore be found by subtracting the Resources from the Outside Liabilities. An Inventory is a list of property ( personal or real ) of which a person or firm is possessed at the time of clv>sing the Ledger, or at any other stated time. What is generally known as "Stock Taking" is the process of finding Inventories, or the value of goods on hand. When Journalizing be careful to debit bank when you make a de- posit ; and credit bank when you issue a check. This may hereafter be dealt with differently. A Draft is an unconditional written order addressed by one per- son to a second, requesting him to pay a specified sum of money to him self, or to a third party. A Draft may be drawn " At Sight," " After Sight," *' After Date,' or " On Demand." A Sight Draft is payable 3 days after acceptance /. e. after the day upon which the payer agrees to pay. Credit the person upon whom you draw a draft. Debit the person who draws a draft upon you. Our Acceptance we call Bills Payable : because we agree, by our acceptance, to pay it. i Another's Acceptance, in our favor, we call Bills Recrivahle, because we expect to receive the money for it. When a Draft or promissory note, bearing interest, is discounted, the interest up to date of maturity must be added, and the discount calculated on the sum. When a firm begins business, debit *' capital account " to what is owing, and credit capital by what is owned and in zested. Footings mean sums of columns. To foot up a column is to add it up. Posting is transferring entries from the Journal to their proper headings or accounts in the Ledger ; and when the posting is finished the total debits and total credits should be equal. To show that this is the case, each amount in the Ledger must be added or footed up, and the sum of the debits should equal the sum of the credits . A paper or statement showing this is called a Trial Balance ; and is taken as pre* sumptive evidence of the correctness of the Ledger. ( QUESTIONS ON WORK COVERED BY FIRST EXAMINATION. What is book-keeping ? How many methods are there ? Name them ? Name the principal books ? What is a Personal Account ? Name the diflFerent kinds of accounts ? How does each class or kind close ? What is Journalizing ? Give the rules for Journalizing ? Why is the debit side of Cash Account always equal to or larger than the credit ? Why is the credit side of B. Pay. always equal to or larger than the debit ? Examine carefully each amount ? What is an account ? What is the balance of an account ? What is the credit balance ? What is a resource, a liability, a loss . nd a gain ? What do you mean by in- side and outside liabilities ? What do you understand by gross gain and gross loss ? What is net loss ? Net gain ? Net investment ? Net worth ? What is present insolvency ? What is an inventory ? What do yod mean by "Stock Taking"? What is a draft? What is an acceptance ? Explain the terms " at sight," " on demand " ? Give the rules for Journalizing drafts ? How is the discount found on an interest bearing note ? What Journal entry is made f^r liabilities on beginning business ? What are footings ? What is posting ? What is a trial balance ? What kind of evi. Axe does it furnish as to the correctness of the work ? i 2.-BOOKS. The following rule will guide you in naming books. Any book is a principal book if you post from it direct to the Ledger, and any book is an auxiliary one from which you do not post direct but which you keep for easy reference, or the like. The following are descriptions of each of the books heretofore enumerated. Study carefully. DAY-BOOK. This book contains a statement of all business transactions as they occur. The entry being made at the time when the transaction took place and should include, (i) The date of the transaction. (2) The name of the person or account. (3) The commodity received or given. (4) The price, quantity etc of Mdse., bot. or sold. (5) The terms of payment. TO CORRECT AN ERROR. This is a book of original entry /. e. the entry is made in it at the time when the transaction took place, and in it erasing is not excusable (see books as evidence in Court.) If the entry is vrong and has not already been transferred mark it "Void, corrected page — ," then on the page mentioned make the entry as it ought to appear, at the same time referring to the page where the error was made. All corrections must leave the entry legible. NoTK : For form of tbii book see Set 1. Primary. JOURNAL. This book is generally ruled the same as a Day Book and contains the name of accounts to be Debited and Credited taken from the Day- Book. The debits and credits must be equal in each journal entry. The most difficult part though not the whole of .he art of Double Entry Book-keeping, is m journalizing. An entry in this book includes (i) The date. (2) The accounts to be charged or credited. (3) The sum of the transaction. ¥ r 25 TO CORRECr AN ERROR. *m If the Journal is used simply as a medium of passing entries from the other book or books to the Ledger, an occasional erasure of a word or a figure is not condemned in practice. Where the entire entry is wrong it is best to mark it "void" cor- recting with another entry or to make a cross entry without changing the first. To make a cross entry, see page 27. Note : For form of this book see Set 1. Primary. CASH BOOK, This book is kept to show the amount of cash received during a day, week, month or longer period, the amount of cash paid out during the period and the balance, if any, remaining on hand. The left side of the book shows the "receipts" and the right side shows the "disburse- ments" or sums paid out. The difference between the sums of sides will show the balance of Cash on hand, at any date desired, same as the Cash account in Ledger, when it is kept there. Every evening you should see that the balance shown in the C. B. agrees with the amount of cash on hand — this is called " proving the cash." The balance on hand at the close of each week should be put on the credit side in red ink and then brought down to the debit side in Mack ink — this is called " balancing the C. B." Whenever cash is received the amount should be entered on the left or debit side of the cash book, giving first the date, next the title of the account to be credited, next the explanatory remarks and finally the amount, Whenever Cash is paid out you should enter on the right or credit side of the C. B. the title of the account to be debited, the ex- planatory remarks and the amount. The C. B. may be proved by adding each side with lead pencil and finding the difference, which diff- erence must agree with cash on hand. This is also a book of original entry and therefore the entries should be made as they occur and with sufficient explanatory remarks to present the transaction correctly before the mind. Erasures must be avoided. As you cannot pay out more cash than you receive, so the debit or "received" side should always be equal to or greater than the credit or "paid out" side. The difference, if any, should equal the cash on hand, and should be placed on the credit side in red ink " By Balance." After footing up both sides and "ruling 26 off," the Balance should be brought down in black ink to the debit side, last column, with the date of the next business di y in the margin. Note ; For form of this book see Bet 1. Junior. LEDGER. This book contains the names of accounts with persons with whom you are dealing, of property in which you are dealing, and cost or ex- pense accounts of the business. One account is open for each person, kind of property, or class of expense, and all the transactions affecting each account are carried or posted from the Journal to the proper account in this book. The left side being the debit or chari^e side and the right side being the credit side. The entries to this book come mainly direct from the Journal and C. B., though sometimes partly from the Sales and Invoice books. This book is the epitome of all trans- actions, properly classified for convenient reference, and iust distribution amongst the debtors and creditors. The result of a man's business is here found, from which a still more condensed statement may be taken for purposes of comparison with past, and guidance in future years. ORDER OF OPENING LEDGER. (i) Open Stock or Partner's accounts. (2) Open Cash, Mdse., Bills Receivable and Payable. (3) Open Personal accounts. (4) Open accounts such as Freight, Salary, etc. ORDER OF CLOSING THE LEDGER. (i) Take off a Trial Balance. (2) Open Loss and Gain and Balance accounts. (3) Close those accounts which show a loss or gain into Loss and Gain account. (4) Close those accounts which show a resource or liability into Balance account. (5) Close Loss and Gain into Stock. (6) Close Private account into Stock. (7) Close Stock into Balance. I t liL 27 student's key to closing the ledger. i(a) Dr. Balances are Resourses. Cash. B. Rec. I Closed (b) Cr. Balances are Liabilities. \ to or by B. Pay. 1 Balance. Personal accounts. / (a) Dr. Balances are Losses / Merchandise, ( \ Real Estate, 2. Fluctuating < < Bank Stock, j j Int. and Dis, \ (b) Cr. Balances are Gains V Closed To or By Loss and Gain. (b) Cr. Balances are Gains V Expense TO MAKE A CROSS ENTRY The following rule must be observed : Debit the account or accounts that have been wrongly credited, or that should have been debited, and credit the account or accounts that have been wrongly debited, or that should have been credited. Note : For fom of Ledger see Set 1. Primary. BILL BOOK. This book is kept to show the particulars of all notes and drafts received or given out. When the entry for a note or draft issued or received has been properly made in the Journal or Sales Book, you should next enter the particulars of the bill as to date, time, drawer, indorser, amount, when payable and so forth in the Bill Book. To get the date of maturity of any paper always add three days ofgrcae. When a bill has been paid, discounted or otherwise disposed, of a "memo" should be made of it in the column marked "when and how disposed of." Double red ink lines should be drawn through the figures representing the face of a note as soon as it has been paid or disposed of Care should be taken in finding the date of maturity of paper. Posting is not usually done from the B. B. NoTU : For form of this book see Wliolesale Set 9. JOURNAL-DAY BOOK. This book as its name implies is a union of D. B. and J. The Journal entry is first given in medium sized writing. Then follows the description, explanation or day-book entry in a smaller hand. This book saves time and labor in account keeping and saves money in buy- ing books. Note : For form of this book see Set 1. Junior. INVOICE BOOK. There are at least two ways of keeping this book, namely, by using a large manilla scrap-book in which to paste the invoices as received. 28 li : Money columns should be ruled to the right of each page so that the sum of each purchase or invoice may be therein extended and added, and at the close of the month posted in total to the debit of Mdse. at the same time separated, crediting the different accounts which require it. All invoices should be folded up to the depth of a quarter page and when pasted in position, the prices of their contents endorsed on the side lying upward. Another plan is to file away the invoices as other papers are filed and enter an abstract of each in a book. This method is just as convenient as the formei" method except that it is found necessary to examine the document when you turn it up, vhereas by the former method when you examine the endorsement should that not be satisfactory you can open the paper and examine it without further trouble. Note : For form of this book see Wholesale Set 6. SALES BOOK. As the name indicates, the sales of Mdse. on account are extended in this book. The date, name, items, terms of sale and the amounts should be carefully noted. The purchasers are debited or charged di- rect from this book with the amount of their purchase, and Mdse. is credited with the sum of the sales every time the books are posted, which is usually monthly. When sales are made for part cash, the entry should be made com- plete in this book, and the balance received in cash^ put into the C. B. Cash sales are extended in both the C. B. and the Sales Book, but posted direct to the Ledger from the Sales Book. It is from the Sales Book that itemized statements of accounts are made out. Some Ac- countants enter cash sales in the C. B. alone and post direct from that book, sometimes keeping a special column and posting in total weekly or monthly. We prefer putting all the Sales through the Sales Book. There are many methods employed to keep this book satisfactorily in large business houses, (i) By having two books, one labelled " Mon- day, Wednesday, Friday," the other labelled, "Tuesday, Thursday, Sat- urday." The advantage in using two books is when the entries are be- ing made in one of them the other may be posted up. (2) By keeping the Sales Book in leaves until a sufficient number are filled to form a book, when they may be bound together in book form. Thus the clerks as they fill the pages hand them in to the Ledger-keeper who posts the -entries and files away the leaves. (3) By the use of tissue paper and 29 K carbon thus taking a copy that will answer for posting even though the Sales Book may be engaged, being written up. Note : For form of this book see Wholesale Set 6. SPECIAL ACCOUNT BOOKS. The following books are comonly used for ease, and economy of time, either in posting or in rendering accounts, (a) Special Column Journal, (d) Personal Ledger, (c) Commission Sales Ledger. (a) SPECIAL COLUMN JOURNAL. This book explains itself. It is a Journal having several money columns, into which may be placed, for example, in one column, ' Mdse. Dr." in another all "Cash Dr." and so on as illustrated. The posting may then be done periodically (generally monthly) carrying the total of "Mdse. Dr." to the debit of Mdse. account in the Ledger and then the debit of Cash and so on. All other items must be entered in the Sundries Dr. and Cr. columns and afterwards posted separately. NoTK ; For form of this book see Retail Set 1. (i>) THE PERSONAL LEDGER. This is a book ruled like a Journal, into which are entered accounts with customers. Generally this is written up from the entries in Order Book remaining unpaid at the close of the day. As many items as pos- sible are written on each line and when value is received on ac. it is credited "By Cash" or otherwise as the case may be, and extending the figures to the right hand or credit column. Note ; For form of this book see Retail Set 1. (c) THE COMMISSION SALES LEDGER. This is a book ruled like a Personal Ledger but both left and right hand pages are used for each account. When a consignment is sold or or partly sold the proper entry is made on the right hand side crediting the consignment by the commodity received. NoTB ; For form of this book see Consignments Set 2. POINTS. The following points are considered of sufficient importance to make special mention of them. Private Ledger. This is a Ledger into which the proprietor or partners may enter investments, keeping it under lock and key, and thus avoiding unneces- 30 sary exposure. When beginning business the first or investment entry may be made in this book; and when withdrawals or additional investments are made the necessary entry may also be made here. Mdse., Loss and Gain accounts may also be kept in this book, and in fact any account deemed necessary for the sake of privacy. Books as Evidence in Court. The following points must be established : — 1. By whom the entries were made. 2. That those books produced are the regular account books. 3. That all, or at least some of the goods have been delivered. 4. That he is honest and accurate in his account keeping — shewn by those who have dealt with him. 5. That the books are books of original entry. Accounts with Branch Houses. These are treated like an ordinary Merchandise account, debiting the Branch for whatever is delivered to it, and crediting it by whatever is received from it. In " Stock-taking '' it should be credited by Inven- tory (unsold goods), and the difference in the sides of the account will then show a loss or a gain. It is debited for all costs. Credit Branch with any goods returned. Branch should be debited when it reports a net gain, and credited when it reports a net loss — the latter is generally the entry that has to be made. The Branch should keep an account with the " Head Office," or " Principal House," and when it (the Branch) purchases goods, the Principal House should be credited and not the parties from whom purchase was made. All bills are usually settled by the Head Office. " Bad Debts Account." — How to write off. In every business bad debts accumulate. And when it is found that accounts are not collected it is better to write them off than to be carrying them forward or allowing them to stand open and unchanged upon the face of the Ledger. Every year at the time of stock taking and closing of Ledger, you should go carefully through the Ledger making a note of all the accounts which you think are worthless and then make the following entiy: — Bad Debts Acct., Dr. To Personal Accts , Cr, If a promissory note is found worthless write it off as follows : Bad Debts, Dr. To Bills Rec, Cr. t 81 If a personal Acct. previously closed into Bad Debts shall be sub* sequently paid make an entry as follows : Cash Dr. To Bad Debts, Cr. When closing the Ledger accounts, close " Bad Debts Acct." into Loss and Gain. TRANSFERRING ACCOUNTS FROM ONE LEDGER TO ANOTHER. Let the old Ledger be called "A" and the new one "B." Close all resource accounts By Balance Ledger B. Folio ; close all lia- bility accounts To Balance Ledger B. Folio . Open the ac. in Ledger B., putting all To Balances on the Credit and all By Balances on the debit side of Ledger B. Index each account after transferring. PLANT ACCOUNT. The " Plant " account in a business represents the machinery, tools, etc., employed in the manufacture of goods or the prosecution of a craft. The account is charged with the cost and credited with the wear and tear on machinery, charging Loss and Gain with the wear and tear every time the Ledger is closed. Or again: — by taking an Inventory of Plant the amount might be credited by the amount of Inventory and then closed into Loss and Gain account. EXHIBITING SETTLEMENTS IN THE LEDGER. Without ruling off, every time an account is settled it may be indicated by placing a red ink check thus V opposite the items, or dates on each side when the settlement was effected. The Ledger should not be ruled except when balancing. Another plan is to put the first letter of the alphabet (A) opposite the items instead of the check mark ; and when the second settlement is made put the second letter (B) instead of the check mark. And so on CD., &c. QUESTIONS ON WORK COVERING SECOND EXAMINATION. How do you distinguish principal books ? What does the Day Book contain ? What should an entry include ? How should an entry be corrected in the D. B. ? Why should erasures be avoided ? What does the Journal contain ? What does an entry in it include ? What 3 8S is the most dificult part of D. E . book-keeping ? When is the erasure of a word or figure in the Journal admissible ? When is it best to make a cross entry in the Journal? For what purpose is the Cash Book kept ? What does the left side show ? The right side ? What is the difference between the sides? How often should the C. B. be "proved" ? How often should it be balanced ? In what colored ink should the balance be entered ? What should be done after balancing ? Into what column should the figures be carried? What is the Ledger? What does it contain ? On which side are charges entered ? From what books do entries come chiefly, to this book ? Why are accounts arranged as they are in the Ledger ? Why do men require abstracts and statements from the Ledger ? Give the order of opening the ledger ? How do you proceed in closing the Lef^ger after having taken off a trial balance ? Which is the last account closed ? Write out the student's key to closing the Ledger ? Give the principle of making a cross entry ? Why is a B. B. used ? Is the B. B. an auxilliary or a principal book ? How is the date of maturity of a bill found ? How do you indicate the payment or disposal of a bill ? How is the J. D. B. formed ? For what purposes are different sized styles of writing used ? What is the advan tage of using this book ? What is an Invoice Book used for ? How many ways are there of keeping it ? Describe one way ? What does the S. B. contain ? What should be noted in each entry ? Is posting done from this book ? If so ho«v often ? Explain the entry of a sale for which part cash has been received ? How about cash sales ? From which book are itemized statements of account' made out ? Describe the best method you know of keeping a Sales Book ? Name three special account books? Describe each? What,and of what use is a Private Ledger? What points must be established so that books may be taken as evidence in court ? What accounts are kept with Branch Houses ? How is an account with a Branch treated ? What should be done when a Branch reports a gain ? What credit should be made by a Branch when goods are purchased ? What plan do you use to write off " bad debts" ? Describe the method of transferring accounts from an old to a new Ledger. .^ ff '- S— DAY BOOK ENTRIES JOURNALIZED. Note.— The Capital letters placed after the number of the Example stand for the names of the books in which the entry should be made. Sometimes an entry should appear in several books but should be posted trom one only. TRANSACTIONS IN CASH. Remarks : — Debit Cash when received, Credit Cash when paid out. Example i. Bot. for cash 25 bbls. Flour @ $6.25 — (J. and C.B.) Example i.— JOURNAL ENTRY. LF LF Mdse. Dr. . To Cash 156 25 156 25 Example 2. Bot. of D. J. McLennan for cash, 60 bbls. Flour @ $6.40 — (J.-C.B.) Example 2.— JOURNAL ENTRY. LF LF Mdse. Dr . . To Cash 384 00 384 00 Example 3. Sold for cash 6 bbls. Flour @ $7.10— (S.B.-C.B.) Example 3.— JOURNAL ENTRY. LF LF Cash Dr... To Mdse. 42 60 42 60 Example 4. Sold C. Clemes & Son for cash 25 bbls. Flour (a $7.00— (S.B.-CB.) Example 4.— JOURNAL ENTRY. LF LF Cash Dr... To Mdse 17500 175 00 84 TRANSACTIONS WITH BANK, Remarks : — Debit Bank when you deposit cash. Credit Bank when you issue a cheque. Example 5. Deposited in Bank of Toronto, Cash $6,000 — (C.B.) Example 5.-JOURNAL ENTRY. LF LF Bank of Toronto, Dr . To Cash 6000 00 6000 00 Example 6. Withdrew from Bank of Toronto per c'k in favor of self, $500— (C.B.) Example 6.— JOURNAL ENTRY. LF LF Cash Dr To Bank of Toronto 500 X) SCO 00 Example 7. Gave H. Jackson a check to settle ajc $125 — (J.) EXAMPLE 7.— JOURNAL ENTRY. LF LF H, Jackson, Dr. To Bank 125 00 125 00 Example 8. Bot. of Dundas & Flavelle for c'k, Mdse. per invoice $275— (C.B.) Example 8 —JOURNAL ENTRY. LF LF Mdse. Dr. To Bank 275 00 275 00 Example 9. Sold G. W. Bell for check Mdse, amounting to $877.30 -(S.B.) EXAMPLE 9.— JOURNAL ENTRY. LF LF Cash Dr.. . To Mdse. 877 30 877 30 85 lOO too 00 oo 30 <^ Example 10. Withdrew what cash I had in B'k of Toronto — (C.B.) Example id.— JOURNAL ENTRY. LF LF CashDr To Bank of Toronto Sioo 00 SIOO 00 TRANSACTIONS ON ACCOUN'I'. Remarks : — Debit persons when you give them anything without receiving any equivalent at the time. Credit persons who give you something for which you return no equivalent at the time. Example 1 1. Sold J. Graham on ale 400 yds. Gingham @ 15c = $60.00 (J.) Example 11.— JOURNAL ENTRY LF LF J. Graham, Dr. To Mdse 60 00 60 00 Example 12. Sold J. Kennedy on 60 days* credit 400 yds. Tricot @ 72c = $288— (J.) Example 12.— JOURNAL ENTRY. LF LF J. Kennedy, Dr. To Mdse 288 00 288 00 Example 13. Received from J. Graham cash in full oiajc $60 — (C.B.) Example 13.— JOURNAL ENTRY. LF LF Cash Dr To J. Graham . 60 00 60 00 Example 14. Received from J. Kennedy cash on ajc $200— (C.B.) Example 14.— JOURNAL ENTRY. LF LF CashDr To J. Kennedy. 200 00 200 00 86 Example 15. Bot. of Bradburn & Co. on ajc 10 cases, 14,080 yds. Print? at 8>4c per yd., $1196.80— (J.) EXAMFLE 15.— JOURNAL ENTRY. LF LF Mdse. Dr To Bradburn & Co. 1 196 80 1 196 80 Example 16. Paid Bradburn & Co, cash on ajc $1000— (C.B.) Example 16.— JOURNAL ENTRY. LF LF Bradburn ft Co., Dr. To Cash . . . , 1000 00 1000 00 PROMISSORY NOTES. A Promissory Note is a written promise, to piiy, unconditionally, and at all events, a certain sum of money, at a specified time. The maker is the person who signed it, promising to pay the amount at maturity . The payee is the person to whom the money is promised to be paid. Maturity is the date upon which the note should be paid. The essentials of a good promissory note are as follows : (i) The promise must be to pay money. (2) The time must be definite. (3) It must be in writing. (4) The sum must be stated. (5) There must be consideration. (6) The person making must be legally accountable for pay- ment at maturity. Notes are either Negotiable or Non-negotiable. A note is non-negotiable when made payable only to the payee. A negotiable note may be drawn to "order" or "bearer." A Negotiable note is transferable without indorsement if the word " bearer " appears in it, and by indorsement if it is payable to " order " of payee. yds. f 96 80 00 00 'ally, Mhe o be * fet pay- B. word ier" 37 Indorsements may be (i) " in blank," (2) •* in full," (3) ** restrict- vily"or (4) "qualified." Examples of each kind of indorsement mentioned above. (1) J. Jones. (2) Pay to A. B, or order. J. Jones. (3) Pay to A. B. only J. Jones. (4) Without recourse to me. J. Jones. Indorsements are made in the regular course of trade for these purposes : (i) To transfer them. (2) To secure payment. (3) To acknowledge partial payment . If you are a purchaser of a negotiable note you may be called upon to show : (i) That you gave value for it before its maturity. (2) That at the time of purchase you ^ere not aware of any claim or condition affecting the validty of the note. A note not paid at maturity is protested in order to hold the endorsers. Interest may be reckoned on the three days of ^,race. No days of grace are allowed on "demand" notes. If a note falls due on Sunday or a public holiday (bank holiday) then it is payable the day following. For notes drawn at 4 months on October, 28, 29, 30 or 31st would fall due on the same day. Why ? Because notes drawn at so many months after date, mean calendar months and February having only 28 days the paper must ma cure the 3rd day of March . When a note matures, it must be presented for payment during business hours at the place mentioned on the face of it. If no place is mentioned, present at maker's residence or business office. If a note is not presented for payment on the very day on which it matures the holder looses his remedy against the endorsers, but the maker is still liable. When a note is paid it should be marked "paid." The interest on an interest-bearing note is regarded as a part of the debt of the maker i.".7i;^Br."ariByBMi 38 and is reckoned from the date of its making. A note generally bears interest from the date of its maturity to the date when it is paid. A note signed by two or more persons beginning "we promise etc." is termed 2i joint note. * The makers are jointly liable. If the note, signed by two or more persons, contains the words " I promise, etc." or " We jointly and severally promise, etc." is called z. joint and several note. An accommodation, is a note signed or endorsed by a friend to admit (by virtue of two acceptable names) of its being discounted at the Bank to raise funds. Or, two persons may exchange notes payable to each other, which, when endorsed may be discounted, and when due may be redeemed by the makers respectively, if one has not become insolvent in the mean- time. TRANSACTIONS WITH NOTES. Remarks : — Debit others' notes recefved as Bills Rec. Credit your own notes issued as Bills Payable. Example 17. Bot. of D. J. McLennan on our note @ 10 dys. 6 bbls. Flour @ $7.00— (J. -B.B.) Example 17.— JOURNAL ENTRY. LF LF Mdse . Dr . ... To Bills Pay. 42 00 42 00 Example 18. Sold J. W. Wallace on his note at 4 mos., 2 cases Prints 2873 yds. @ i2c = $344.76— (S.B.-B.B.) Example 18.— JOURNAL ENTRY. LF LF Bills Rec. Dr. To Mdse. . 344 76 344 76 Example 19. Bot. of Pillow, Hearsy & Co., Montreal, Mdse. per In- voice $728.22, for which I hand them in payment J. Wallace's note, received to-day, and my own note for bal— (J--B.B.) f t LF LF LF 39 Example 19.— JOURNAL ENTRY. Mdse. Dr To Bills Rec " •' Pay 728 22 344 383 76 46 Example 20. — Paid our note in favor of D. J. McLennan by giving him goods from shop worth $42.00 — (S.B.-B.B.) Example 20.— JOURNAL ENTRY. LF LF Bills Pay. Dr. To Mdse . . . 42 00 42 00 TRANSACTIONS IN PART PAYMENT. Remarks : — When only part payment is received for the sale of goods — Debit what you receive for its value, and Debit the person receiving the goods for the part unpaid. When purchasing — credit the person from whom you receive the goods by the amount unpaid. Example 21. Sold J. Kennedy 5 cases, 7,050 yds. Print® 110 = 1775.50 Received in payment, Cash $275.50, bal. on a/^ $500 — (S.B., C tS; Co., Cains and Losses to be divided according to invotiiici I. J "(lis invests a deposit in Bank of Toronto, $7000 Kvans invests a deposit in the Bank of Toronto, 49 'P $6000. Smith inveC)ts Cash, $2500; Mdse., $4500; J. Stevenson's note at 3 mos., dated Aug. 15th, 1888, bear- ing interest at 7% face of note $1000. J. H. Secord owes Smith $350. Example 51. -JOURNAL ENTRY. X) X} n d Bank of Toronto Dr . Cash Dr Mdse. Dr Bills Rec. Dr Interest Rec. Dr . . . . J. H. Secord Dr To Jones II Evans II Smith 13000 00 1 250000 1 4500 00 looo 00 14 50 3SO 00 7000 00 60001OO 8364 58 Example 51. Divide a net gain of $126 among the above named part- ners in the proportion of 7, 6 and 8, making the proper Journal entry to show the accounts affected. Example 51.— JOURNAL ENTRY. Jones Dr Evans Dr, Smith Dr To Loss and Gain . 42 00 36 00 48 00 126 00 Example 52. Joun alize: Evans withdrew for private use, Mdse. $15, Cash $10. EXBRCISE 52.— JOURNAL ENTRY. Evans Dr.. To Cash. M Mdse. "•■ t 10 15 00 00 60 Example 53, A, B and C are partners, having invested $1010.50, $2000 and $3995 respectively. They gained $600 during the first half year. Make a Journal entry shewing each one's df/^ properly credited. (Divide in proportions i, 3, 3 their investments are so very nearly equal to these ratios.) Example 53.— JOURNAL ENTRY. Cash Dr . To A.... B B „ C... 600 00 100 200 300 00 00 00 Example 54. James and John are equal partners in a $10,000 concern, and it has been agreed that should cither increase or de- crease his capital during; the year he should be charged or allowed interest at the rate of 6% per annum ; and the gains and losses shared equally. Accordingly we find (a) James withdrew $1000 at the end of 4 mos., and (6) John invested $1000 at the end of 4 mos. Make a Journal entry adjusting their accounts at the close of the year. Example 54. -JOURNAL ENTRY. James Dr. . To John . 1 100 00 HOC GO Example 55. A and B engage in business March ist, 1889, each in- vesting $1600; June I, A increased his investment $400, and B drew out $300. Make the necessary Journal entries and an adjusting entry March ist, 1890. E xample 5 5.— JOURNAL ENTRY. 1889. March . . . June. June. 1890. March . . . {a) Cash Dr. To A. .. 6. (*) Cash Dr . . . To A... {c) BDr To Cash . (rf) B Dr Interest Dr. To A.... 3200 400 300 >3 4 oc 00 00 50 50 1600 1600 400 300 18 00 00 00 00 00 1 J 51 Example 56. C and D, who were to share gains and losses, C ^, D li, have lost $360 during the year. Make a Journal entry shewing the proper debits and credits. Example 56.— JOURNAL ENTRY. CDr DDr To Loss and Gain 240 120 00 00 360 00 JOINT STOCK COMPANY TRANSACTIONS. As to the question of dividend : — As soon as the amount of the dividend is known this is next converted into so much per cent, on the stock, paid in. It is seldom that a company declares a dividend to the full extent of the earnings of the year. They usually declare an even dividend. Example : — If the company has earned 12 J/^ per cent, they would likely declare a dividend of, say 10 per. cent. What is left would remain at the credit of loss and gain, or it might be carried to the credit of "Undivided Profits" or "Rest Account" or "Surplus Account." The effect this "Rest" account has on the stock and stand- ing of the company is to enhance it. Besides this the "Surplus" ac- count may be taken, that is a portion of it, any year that the company does not net the usual dividend, thus keeping up a uniform income for those dependent upon it for their sustenance. In years of general de- pression when failures occur in rapid and serious succession, the pos- session of a "Rest" account enables the company to meet all obligations and still declare the customary dividend. Another advantage in pos- sessing a "Rest" account is that it prevents undue fluctuation resulting from varying dividend. When the dividend is declared we debit loss and gain and credit dividend No. i or No. 2, as the case may be. When the dividend has been paid to the shareholders debit divid- end and credit cash. Example 57. A company which had a net profit for the year of $20,000 upon a capital of $200,000, declares a dividend of 6% per annum : 2% going to Rest ajc and 2% is paid in stock. I 52 ExAMPLK 57.— JOURNAL ENTRY. LF LF LF LF Profit & Loss Dr. ... To Dividend No. I . " Rest " Onital Stock. . $20,000 00 $I2,OCO 4,000 00 00 4,00000 Example 58. You bought 24 shares of Tallapoosa (Georgia) L. M. & M. Co'ys Stock at $20.00 each, and sold them at $30.00 each the same evening. Example 58.— JOURNAL ENTRY. Cash Dr To Loss & Gain. $240 00 $240 00 Example 59. Instead of selling immediately you keep your stock for S01..C time and finally sell as in example No. 58. Example 59.— JOURNAL ENTRY. («) (i) T.L.M &M. Co'ys Stock Dr. To Cash CashDr To T.L.M. & M. Co'ys Stock, •' Loss & Gain 48000 72c 00 480 480 240 00 00 00 Example 60. You bought 20 shares Ontario Bank Stock t8> par value $100 each. Some time later you sell 10 shares at 15% premium. Cash received thereior being $1150. Example 60.— JOURNAL ENTRY. ( 264 280 142 86 75 24 280 c. 00 25 00 00 00 SO 00 00 50 00 28 24 30 $2232 80 00 00 OS AccouMTs to be opened in the Ledger in this Set are as follows:— Bannell SaA '"i^r, allowing 4 lines; Cash, 8 Hues: Flour, 8 Lines; Bills Receivable, 4 lines; Bills Payable, 2 Hues; Expense, 2 lines; Loss and Gain, 4 lines; Balance, 4 lines. * This check mark shows that the entry before which it is placed has been transferred to the JournaL 62 M MODEL JOURNAL. SET I.— PRIMARY. (9) Port Hope, Ont., June ist, 1889. REASONS FOR DEBITING AND CREDITING. 0. ii debited because received into the buslneds. B. S. is credited because he put the money into the business. F. debited because rec ived. C. credited because parted with C. C. A Co. not mentioned bC' caase ttiey pay for what they get D. J. MoL. not mentioned in Journal entry because you paid him in iull. B, R debited because a promis sory note or draft (i.e. a bill), hat^ been receded, and for which in 3 -h 8=6 days you expect payment J„ M'a name does not appear in Joa.'n^l entry because he paid you in fuil for what he got and should not now be debited or credited. F. debited because received. C. credited because paid out, Reasons as in No. 8. B. B. debited because another^ promise to pay is received, and for which bill we will receive payment B. R. credited because it has been "paid," "given out" or i' piurted with." B. P> debited because our prO' mise to pay (bill payable), has been given out— parted with. Expense is debited because i1 has coit us value. Same as in No. 4. L.F. (3) (2) (2) (3) (3) (2) (5) (3) (2) (3) (3) (2) (2) (3) (2) (s) (3) (4J JOURNAL ENTRY. Cash Dr To B. Sawyer Cr. 3 Flour Dr. To Cash Cr. 4 Cash Dr To Flour Cr. 5 Flour Dr To Cash Cr. 7 Bills Rec. Dr To Flour Cr. 8 Cash Dr To Flour Cr. Flour Dr To Cash Cr. 10 Cash Dr To Flour Cr. 1 1 Bills Rec Dr To Flour Cr. 1 2 Cash Dr To Bills Rec. Dr. (6) (2) (2) (3) 14 Flour Dr To Bills Pay. Cr. 15 Expense Dr To Cash Cr. 16 Cash Dr To Flour Cr. $ c. $ 840 00 840 106 25 106 SI 00 SI 264 00 264 280 00 280 142 50 142 86 00 86 75 00 75 24 so 24 280 00 280 28 80 28 24 00 24 30 CO OS 30 $2232 $2232 c. 00 25 00 00 00 so ob 00 SO 00 80 00 00 05 Note.— The student will copy Journal given above, omitting " Reasons " to the lelt, as he has no space in his book for giving Me reasons, but he should study so as to be able to apply them in ■ubsaqnent work. 68 c. oo MODEL LEDGER— SET i., primary. Dr. (Liabilities & Losses.) BANNELL SAWYER. (Resources ft Gains.) Cr. June i6 To Balance (R. Ink) L8 $933 «933 June By Cash II Loss and Gain . 9 S840 L? 93 «933 00 95 95 Dr. (Receipts.) (S) CASH. (Paid Out.) Cu June I 4 8 10 12 16 To Bannell Sawyer. M Flour II B. Rec. II Flour. . 9 $840 00 June 3 9 51 00 II 5 9 142 50 II 9 1 9 75 00 II 15 9 280 00 II 16 9 30 1418 00 50 By Flour 9 II II I 9 9 9 L8 I. Expense It Balance (R. Ink). $106 264 S6 24 93« 1418 ?5 00 00 00 25 50 Dr. (Cost of Purchases). (3) FLOUR. (Proceeds from Sales). Cr. June 3 11 5 II 9 II 14 II 16 To Cash I, B. Pay II LossftGain(R.Ik) 9 9 9 9 L7 $106 264 86 28 117 8603 25 00 00 80 95 00 June 4 B; 7 8 10 II 16 By Cash . . B. Rec. Cash . . B. Rec. Cash . . $ 51 280 142 75 24 30 J603 00 00 50 00 50 CX5 00 (4) Dr (Our Notes Redeemed) BILLS PAYABLE. (Our Notes Issued). Cr. June 16 To Balance (R. Ink) L8 $2880 J urn- 14 By Flour . S28 80 (5) Dr. (Others' Notes Rec'd). BILLS RECEIVABLE. (Others' Notes Red'd). Cr. June To Flour. 9 $280 00 June 12 9 [ 24 $304 50 50 II 16 By Cash II Balance (R. Ink) 9 L8 $280 24 $304 50 00 50 I 64 Hr. (Cost) KX TENSE. (Closing.) Cr. June •5 To Cash . . , 9 24 00 June 16 Hy Los-r^T: RECEIVABLE. No. I 2 3 4 L. A. Edgerton . . W. W. Harkness. J. B. Forde H. W Harding . Dr. 2675 1259 2150 603 6688 CXJ 77 CXJ 26 03 Cr. 2500 550 1650 J57 5057 00 00 00 87 87" Balance. 175 709 500 24s 1630 00 77 00 39 16 I PERSONAL ACCOUNTS PAYABLE. No. I 2 3 4 5 6 7 8 9 Crouse Bros Geo. H. Smith Judson & Co Ham & Forbes . . . . Perrin & Reed Lawrence & Co. . . . Beekman, Bros. . . . Scott, Bar & Son . . E. Robinson Dr. 634 1122 384 873 1037 1244 1357 944 425 8023 72 33 00 26 56 48 03 89 25 52 UR. 834 132I 485 1273 I3S7 2720 1688 1094 748 11,524 72 50 5" 26 67 25 89 17 81 77 Balance. 200 199 100 400 320 1475 331 149 323 3500 00 17 SO OO' II 77 86 28 56 25 A Balance Sheet should show as follows : — 1. Name of Ft'rm. 6. Debit and Credit footings. 2. No. of accounts. 7. Inventory. 3. Date when taken. 8. Loss & Gain Statement. 4. Ledger Titles. 9. Stock or Partners' Accounts. 5. Ledger Folio. 10. Assets and Liabilities. 75 NCE. OO n OO 39 i6 ,. NCE, OO S» OO' II 77 86 28 56_ 25 ;s. ON 00 00 h o O 'A < H H o 1 \r\ J ro VO 1 O^ M rt N 1 N Financial Po I-] 1 u 3 1 . 1 ^ J 8 1 -> N ■* _ Ptf w^ 1 in 00 1 00 • N ' N ^ 1 g 1 N 1 M 75 . •* 1 • JS < h4 'i. ^ 4-* ir> IT) u u I-] h^ 00 Ov z ,.<« _!<' >, N 1 f^ •4-' ■* 1 ■ c c • •-< f , 0) "A « C c u VC vC fn u^ < N *m HI* VO u ^ < 05 8 < oS cri »-< c C HH OS Q N « r;- fO vO N M H N4 N4 *H HM v£> ^ U, J M M « m ■* tn 00 cs oo s ^* U) . < 73 -5 4. (X c C > V, a a, MM ^ r< ■) '& tn \o *^ ' 'J' 7. -EXERCISES IN POSTING. NoTK :— Open tliu necessary Ked^er accountH and post the Tollowiiij; itoniH to tholr renncctivo lilucuH. Do not open a •Tournal, llio uutrles arc vtmy and aliould be Juurnallzud mentally. For form of Iiedger uee Model Set, pages 03 and 04. 1890. FIRST STUDY. Jany. ist G. S. Bean began business with cash on hand $1900 00 J. Jones owes him on a/c, (included in investment), 350 00 2 Bot. of A. Hall, for cash, goods valued at 70 00 Bot. of S. Evans, on ajc, Mdse. for use in store. . . 25 00 Bot of T. Dolan & Co., on ac, i suit clothes for self. 30 00 Bot of Stetham & Co., for cash 2 door locks @ $1. 2 00 3 Sold J. Hawley, on aU:, 10 yds tweed Qij 90c. ... 9 00 Sold J.W. Brisbin, for note at 10 days, goods. ... 12 00 4 Paid for office lamp 5 co Paid clerk, on a/c, of salary 3 00 5 Paid rent in advance, i month 20 00 6 Reed, of J. Hawley, on ajc. cash 5 00 7 Paid for local advertising 2 00 8 Paid for letterheads and envelopes ... 7 00 9 Paid T. Dolan & Co. on ajc 2000 10 Paid for t load of wood for store 4 00 Deposited in Ontario Bank 1000 00 Accounts to be used : G. S. Bean (Proprietor) Cash, Mdse., Bills Receivable. S. Evans, T. Dolan & Co., J. Hawley, Ontario Bank, Expense Advertising, Loss and Gain. (i) Show the net loss or gain. (2) Show amount of personal ac- counts receivable. SECOND STUDY. 1890. Feby ist J. J. Rooney began boot and shoe business invest- ing Cash $1,000.00 and Mdse. $500.00. Rented store on Water St. at $300.00 per. annum payable monthly in advance. He pays one month rent in cash $ 25 00 Bot. store fixtures, for cash 75 00 Bot. office stationery, for cash 15 00 Bot an assortment of goods of J. Carey on 3 mos. ajc 450 00 77 9 Signed advertising contracts with Examiner $120.00 Review $120.00 Times $120.00 for ^ col. space in daily and weekly edition of each paper for one year at figures set opposite. Space to be paid for monthly in equal install- ments. NoTK :- Debit AdvertiBing anil credit BlllH Payable, for the reason tlwit whether your nimee i» o.'cupled or not you will be ciilled upon for payment as promptly as tliougti a promissory note had be n giveu in each case. 3 Sold A Robinson, Jr., on a/c goods worth 10c 00 4 Bot. of Foote & McVVhinney, on ajc, 2 cases mens' slippers 5° ^° Paid Examiner, Review and Times one month's advertising in advance 20 00 Note : -Debit B. Pay. and Credit Oasli. 5 Sold M. H. McVVilliams, Madoc, on 10 days' a/c i case rubbers 20 00 6 Paid for letter press for office use 7 °o 7 Appropriated for private use, cash 1 2 00 8 Paid railway fare to Port Hope, and sundry other expense items to Lindsay and Norwood, while engaged in distributing circulars, etc 5 00 9 Reed. 10 cases goods from VV. J. Wise & Co.. To- ronto, for which we have sent them our note at 10 days 300 00 10 Paid freight on above goods in cash 5 00 NoTB :— Debit Mdse. Sold A. Robinson, goods, per. invoice 25 00 Reed, in payment an order on Foote & McWhinney Accounts to be used. J. J. Rooney, (Proprietor), Cash, Mdse. Bills Payable. J. Carey, A. Robinson, Jr., Foote & McWhinney, M. H. McWilliams ; Expense, Advertising, Fixtures, Loss and Gain, (i) Show J. J. Rooney's present worth, supposing $1000 worth of Mdse remains unsold. (2) Providing the stock of mdse. and fix- tures had been burned. 78 1890 THIRD STUDY. March i. Student began business to-day investing cash $1500. 2 Bot of E. H. Turner, Peterboro, for cash 100 pairs Men's Kipp Boots @ $3.00, 3 Sold W. H. Stevens, Peterboro, on ers irs, [OO C. iirs, Im. ( ,. 79 6 Paid H. C. Jennings, Erantford, in full of ajc 2500 00 7 Cash sales to-day 75 00 8 Sold James Graham on ajc, per S. B 687 50 10 Bot of Pratt & Co., for cash, per Invoice 200 00 11 Reed. Cash of James Graham, on ajCy per S. B. . . 1000 00 12 A. L. Davis paid his note of 4th inst., in cash 375 00 15 Sold James Graham, on ajc^ Mdse. per S. B 650 00 17 VV. H. Stevens paid his note of 5th instant, to-day, in cash 900 00 19 Paid our note of 2nd, instant, favor Jones & Co., in cash 12500 21 Sold James Hope & Co., on their note at 10 days, Mdse, per S. B 331 25 25 Bot of Durie & Son, on 30 days note, goods per In. 575 00 30 Unsold goods destroyed by fire. (a) Find loss, (b) Find total purchases, (c) Find sum of lia- bilities, (d) Find cash in handr im. th? 00 00 00 00 00 QUESTIONS ON WORK COVERED BY EXAMINATION ON NOTES AND DRAFTS. See pages 36f 37, 40 and 41. What is a promissory note ? What is a draft ? What is th*;; maker ? the payee ? What do you mean by maturity ? What are the essentials of a promissory note ? Write out a note negotiable by end<)raement. What kinds of endorsements are there ? Why are endorsements made ? What two points may the purchaser of a note be called upon to estab- lish ? Why is a note protested ? On what kind of bills are days of grace not allowed ? vVhy should an endorsed note be presented for payment on the very day on which it matures ? What is a joint note ? Distinguish between joint note and joint and several. What is an accom- modation note ? When does the drawee become a party to a draft. ? Give the wording of special, general and qualified endorsements. Give the rules for journalizing drafts. 6 I i » V 80 SET II.— PRIMARY. Lindsay, Ont., isl June, 1889.- Geo. S. Bean, commenced business to-day wiih a Capital of : — Cash, per C. B Mdse. per Inventory 2 Bot. of Bradburn & Co. for Cash . 6 Cases, 8460 yds Prints, at . . . 5 Cases, 4654 yds Ginghams at I Case, 250 yds C. Flannel, at ■3- Paid Cash for Office Stationery, etc. ■4- Eot. of Dundas & Flavelle, for Cash. 1340 yds Tricots 27s yds Broadcloth 2 •5 Deposited in the Bank of Toronto, Cash at 3 per cent, interest 6 Sold J. Graham, on acc't. 400 yds Gingham 75 yds Broadcloth 3 -8 Sold G. W. Beall, for Cash. 940 yds Tricots 64s yds C. Flannel 9 9 I2i 15 51 50 Paid Clerk hire. -10- Soid for Cash, 75 yds Broadcloth 3 II Sold John Kennedy, on 60 days' credit. 400 yds Tricot 12 Bot. of Bradburn & Co., on acc't. 10 cases, 14080 yds Prints. . . . 13- Rec. of J. Graham, Cash in full of acc't ■14- Sold John Kennedy, 5 cases, 7050 yds Prints. . . Rec'd Cash, $275.50; balance on acc't. $500 17 Sold J. W. Wallace, on his note at 4 mos. 2 cases, 2873 )^s Prints .18 Paid expenses in cash . -20- Paid Bradburn & Co. on acc't 15 00 70 34 50 72 H II 12 $ lOCXX) 5000 761 581 37 100 683 687 6000 60 225 c. 00 00 40 75 5° cx> 40 50 00 CO 00 $ 65800 21930 3000 262 50 28800 1 196 285 80 GO 775 .-i 344 175 1000 S29371 76 05 00 46 15000 1380 100 1370 6000 285 877 30 262 288 1 196 285 775 c. 00 65 00 90 00 00 30 00 50 00 80 00 50 344 175 1000 $29371 05 00 46 (Red Ink) Inventory : Value of unsold Goods ^ $6822.35. Set II. — Ledger Titles. — Geo. S. Bean, 4 lines ; Cash, 10; Mdse. 9 ; Tank of Toronto, 2 ; J. Graham, 2 ; John Kennedy, 4 ; Bradburn & Co., 4 ; Bills Rec, 2; Exp^^nse, 5; Loss and Gain, 4; Balance, 7. can 90 oo 81 SET II.— PRIMARY. STATEMENT OF LOSSES AND GAINS. Mdse. Dr. or cost $8948 . 35 II Cr. or proceeds $2833.06 II Inventory (goods unsold). 6822.55 9655.61 II Difference, a gain Expense Dr., a loss George S. Bean's net gain (Red Ink) Losses. 305 402 707 OS 21 26 Gains. 707 26 707 26 SET III— PRIMARY. 30 100 50 ioo 80 00 150 ;o5 )00 [ 46 STATEMENT OF RESOURCES AND LIABILITIES. No. Accounts with Persons. Liabilities Cash Dr. amount received $2669 II Cr. II paid out 1810 II Difference, a resource (Red ink) Mdse. on hand per Inventory, a resource. . . . B. Rec. Di. amount of Bills Receivable .... 1150 II Cr. II II settled 400 II Difference, a resource (Red ink) Bills Pay. Cr. amount of Bills issued 2300 II Dr. 11 II redeemed.... 200 II Difference, a liability (Red ink) . . Geo. A. Cox Dr. amount he owes me 175 11 Cr. II I owe him 300 M Difference a liability (Red ink) P. L & I. Works Co., I owe them, a liability J. J. Rooney's net worth (Red ink). . . . L F 82 SET III.— PRIMARY. Peterborough, Ont., ist June, 1889. J. J. Rooney commenced business to-day with the following resources and liabilities : Resources : — Cash, on hand Mdse., on hand per Inventory Bills Rec, Jas Kendry's note, due 5th inst. Adam Hall, owes on a/c Liabilities. — I owe as follows : Bills Pay, my note due loth inst., favor Jas. Stevenson Geo. A. Cox, on ajc — 2- Bol. of The Gibb W. & I. Co. (Montreal) for Cash. 10 Reels of Barb Wire 10 10 Rolls Wire Gauze ^5 00 00 Bot. of Pillow, Hersey & Co., Montreal 100 bbls Cut Nails 3 20 II Pressed Nails 4 25 Gross Brads i 5 Cwt. Railway and Pressed Spikes . . 5 10 Gross Horse Shoes 10 50 Gross Carriage Bolts, $1.20 ; 50 Gross Tire Bolts 10 Gross Coach Screws 4 10 Gross Hot Pressed Nuts i 10 Gross Forged Nuts 2 10 Doz. Felloe Plates ; 4 20 Gross Lining and Saddle Nails 2 25 Gross Tufting Buttons i 25 00 10 00 00 20 20 30 10 30 15 Rebate from list prices 12^^ per cent, (that is \) Gave in payment Jas. Kendry's Note, $400, cash for balance, $328.22. 6 Bot. of McKechnie& Bertram (Dundas,On»..) for Cash. 15 Doz. Punches I 12 Doz. Shears, assorted sizes 2 (Red Ink) Carried forward $2000 3500 400 100 200 300 100 00 00 00 00 00 00 325 80 27 25 loo 105 42 12 23 41 23 28 832 104 00 00 50 00 00 00 00 00 00 00 00 75 25 03 15 26 00 40 6000 500 250 00 00 t oc 728 22 41 «75i9 40 62 83 urJm Peterborough, Ont., 7lh June, 1889. 15rouph» forward, 7— Bot. of W. H. Banfield, (Tc . j, Ont.) for cash. 10 Knitting Machines, $25 10 Sets Tinsmith's Tools, $16.25 Rebate from list prices $41-25 10 per cent, and 5 per cent, oflf 18.56 8- Bot. of Thomas Robertson & Co., Montreal. I car load Pig Iron, 24,365 lbs. 3c *' Bar Iron, 24,537 lbs. 5c I Lot (assorted) Steam and Gas Fittings. Gave in payment notes at 2mos. , $600; 3 mos.. $600, and 4 mos., $800; Cash for balance, $433-05 • Bot. of the Peterborough Lock and Iron Works. 50 doz. Door Locks, complete, $4.10 $ ,c. 250 162 412 59 00 50 50 81 $ 7519 Gave in payment draft on self at 30 days, for $100, balance to remain on open acc'l. -9 Paid sundry items for Freight and Cartage Paid Clerk hire Sold 1^. Kingan & Co., Mdse. per invoice, for Cash So.d M. Miller for note at 30. Mdse. amounting to. 10- 730 1226 475 Sold Geo A. Cox on ace. Mdse. per invoice. Received from Adam Hall, payment in full of acc't. Paid my note favor Jas Slevenson, due to-day, 205 165 40 569 75^^ 175 100 200 00 17 00 20! li GO 00! 00 C. 62 352 2433 69 05 205 DO 205 569 50;! 750 175 100 200 I25IO 17 20 50 O 00 00 23 Note- -I want to admit Jamea Stevenson as silent Partner, who will invest cash cqnal to my net worth. Jontiializp, post and take otl' stat(MiH'nts— when this is done close all the accounts, bring down all hulunces, ai;d open an account tor .liinies Stevenson, crediting him with hia Cash investment This leaves your books ready for business again. (Red ink) Inventory: — Mdse. unsold per books, $6220.83. Set III.— Ledgkr Titles— J, J. Rooncy, 5 lines; Cnsh, lo; Mdse., ii; Bills Rec, 5; Bills Pay., 5; Adam Hall, 2; Geo. A. Cox, 5; the P. L. & I. Works, 3; Expense, 2; Loss and Gain, 2; Balance, 6. 84 Sample of C. B. used in Junior Practice. Dr. cash. Cr. 1889. Rkceipts. 1889. Disbursements. Oct, Oct. Student, investmt Mdse., sales . Jones, on a/c. . . . B.Rec, Young's [note Interest on above Balance I 500 Oct. I 3 100 II M 4i 25 II II 4 4CX3 II 6 4 10 535 1035 2 790 Fixtures, desk & 5 [books Expense.circ'l'rs 5 Mdse.jInv.No.i 3 BaIance,onhand 2 30 'S 200 245 790 1035 Note.— In working the Junior Sets the O. B. should bo Itept as above illustrated. The balance la carried down to the left, ready for next day's business, and wheu posting put nothing in Cash account in the Ledger except the balance on hand. Sample of J.-D. B. used in Junior Practice. JOURNAL DAY-ROOK. PeterbrrO, Ont., ist Jan'y, 1889. Journal Entry. D.-B. Entry Abbreviated. Cash Dr Mdse. Dr per Stock book B. Rec. Dr J. j V note due 26th inst. J. Thorns Dr he owes on ace To Stock J. Smith's investment V 'lliarii Iji p.n yds. Twe*''. at i.oo. To ,dd;ic ExpOi e D- Cratage ace, To C. Cou! 1 ! Dr • Cr. 500 200 ISO ISO 20 5 1025 1000 20 5 1025 NoTK. — This form of book sl»ouId be used by the student hereaftei; being convenient and compact. * This check mark is tr> shew that cash must not be posted. Cash should be posted from the C. B. only, and then only the balances. 4* 8.— JUNIOR PRACTICE. DIRECTIONS. Your attention is first called to your capital of $500.00, which is given you for the purpose of conducting a general store in Peter borough. The commission for selling goods for others will be 3 */„ Fold and file all business papers, except Bills Payable and BUI Receivable, according to the following : — ist, the name of the paper ; 2nd, the name of the firm from which it has been received ; 3rd, the date to the left hand ; 4th, the amount to the right hard under the firm name. Filings should be written in a small neat style, havir„' red ink rul- ing underneath. All Bills of "Mdse," Invoices and Acc't Sales should receive your initials and the word "Ex." WORKING RULES. I. — The work of each set must he examined by the incipal. 2.— 'Errors must be corrected before the work of he next set is begun. 3. — A trial balance will be required with each ^ • and a balance sheet with the last. 4. — Your Bank Book must be handed in for balancing at the end of each set. 5. — Cash Ac. must agree with the cash on hand. 6. — Accept no currency that is disfigured or torn . SET FIRST. Books used : — Day Book, Journal, Ledger, Cash Book, Check Book. TRANSACTIONS. Place, Peterbcrough. I. — Invest cash, $500. 2. — Buy your supply of goods from some wholesale house. 86 3 — Buy and sell for cash 6 times, recording the transaction each time in your Day Book, using any name that may be convenient . 4. — Buy and sell 5 times on ajc. 9 10 — Deposit what cash you have in the College Bank . — Buy and sell 6 times giving and rece'ving checks in payment. — Journalize. —Post. —Take off Trial Balance. Close Ledger and present books for examination. SET SECOND. TRANSACTIONS. Flace^ Ottawa. I. — State your Resources and Liabilities, resulting from first set. 2. — Buy and sell on a\c three times. 3.— Buy and sell for note 3 times 4. — Buy mdse., not less than $150. Give in payment, check one- half, note at 60 days for balance . 5. — Sell mdse., not less than $100, receiving in payment check, cash and note @ 30 days each, J^ balance on a\c. 6. — Receive a consignment of mdse. to be sold on ajc and risk of consignor, not less than $230. 7. — Sell for cash h:ilf of No. 6, making $25. 8. — Deposit in College Bank cash on hand. 9. — Sell remainder of consignment at cost on 30 days o c. 10. — Journalize. Post. Take ofif Trial Balance. II. — Close Ledger and present books for examination. SET THIRD. TRANSACTIONS. Place, Toronto. I. — Lease Store No. . . . Hunter Street, at $360 per annum, pay- able monthly. 2. — State your financial position resulting from Second Set. 3. — 'After posting your Resources and Liabilities, take ofif Trial Balance — if correct, proceed. 4 — Buy mdse. not less than $100. Give in payment cash for one- half, check for balance. ■ i 87 1- .1 1 5- — Deposit in College Bank any cash you may have in your possession. 6. — Buy and sell 6 times, payment in various ways. 7. — Buy mdse. not less than $150, giving joint and several note. 8. — Receive a consignment. 9. — Sell conrignment at an advance of 10 per cent. 10. — Ren'd Ac. Sales. Com. 3 per cent, on sales. Storage I per cent, of value. 1 1. — Sell all your mdse. by auction. 12. — Journalize and Post, close and show result on Balance Sheet. 13. — Collect all outstanding ac's, pay all debts. 14. — Present work for examination. 15. — Return any Currency or Blanks you may have to the Principal, LETTERS. I — REQUESTING PAYMENT OF AN ACCOUNT. Peterboro, Ont., Marcli i6th, 1889. J. K. Bov, Esq., Ottatva, Ont. Dear Sir:— The balance of your account, ($25) twenty-five dol- lars, is considerably over due, and I write to call your attention to the matter. Our expenditures at present are such that we must request the prompt settlement of all over due accounts. Yours very truly, Bannell Sawyer. NoTK ;— Care must he taken not to give otlbnce when requesting jinynient oian ac. Most men are honest either from pride or moral principle and they will square accounts in time, if not insult- ed or compelled, 2 — REPLY APPOLOGIZING FOR DELAY AND ENCLOSING THE AMOUNT. Ottawa, March 20th, 1889 Mr. Bannell Sawyer, Peterboro^ Ont. Dear Sir : — Your letter of the i6th inst. to hand and I have to apologize for my tardiness in remitting. Enclosed please find P. O. 88 Order for ($25) twenty-five dollars to balance account. Please send receipt in full by early mail aud oblige, Yours respectfully, J. K. Boy. Note :— Tlie receljit asked for in this letter should be forwarded without delay ond kept for at least 6 years by the recipient. 3 — ANOTHER REPLY TO NO. I, THE ACCOUNT HAVING BEEN SETTLED AND A RECEIPT HELD. Ottawa, March 20th, 1889. Mr. Bannell Sawyer, Peterboto, Ont, DEAk Sir :- Your letter of the i6th, inst., to hand calling attention to a balance of an overdue account. There must be some error or omission in your accounts for I hold a receipt dated Feb. 28th in full of account. Yours respectifully, J. K. Boy. Note!— You observe how useful the receipt may here become. 4 — CALLING ATTENTION TO AN ERROR IN INVOICE RECEIVED. Ottawa, Ont., April 4th, 1889. W. J. Gage & Co., Toronto, Ont. Gentlemen : — On checking over the Invoice of goods received from you a few days ago, I find an overcharge of ($14) fourteen dollars. Kindly credit my account with this amount and remit "credit slip." Yours respectfully, Bannell Sawyer. Note— A "credit slip" is usually an"account form" printed in red and filled in crediting a person who had be«n previously overcharged. The recipient should attach it to the Jinvoice containing the overcharge. 5 — ANSWER TO NO. 4 STATING THE ERROR HAS BEEN CORRECTED. Toronto, Ont , April 6th, 1889. Mr. Bannell Sawyer, Ottawa, Ont. Dear Sir : — Your letter of the 4th, inst., calling our attention to an over charge of ($14) fourteen dollars, has been received. We are sorry the mistake was made and have credited your account with amount of error per inclosed "credit slip." Yours very truly, W. J. Gage & Co. I 89 kl\» 1 6 — ANSWER TO NO. 4 STATING THAT THE AMOUNT IS RIGHT, BUT, THAT AN ITEM HAS BEEN OMMITED IN COPYING FROM SALES BOOK. Toronto, Ont., April 6th, 1889. Mr. Bannell Sawyer, Peterboro^ Ont. Dear Sir : — Your letter of the 4th, instant, calling our attention to an over charge of ($14) fourteen dollars, has been received. On re- ferring to our Sales Book we find that the amount of Invoice rendered is correct and the seeming overcharge is accounted for by our having omitted entering 7 doz. handkerchiefs @ $2 =$14. Doubtless by this time you have found that they were not named in the Invoice. Yours respectfully, W. J. Gage & Co. Note;— Before reporting errors buHiness men should very carefully check over each item in a consignment of goods with the Invoice, then verify the extensions and additions, thus avoiding un- necessary correspondence. 7 — A REQUEST FOR A CREDIT OF $I00O GIVING REFERENCES. Peterboro, Ont., April 12th, 1889. Jno. MacDonald & Co., Toronto, Ont, Gentlemen : — Finding my capital insufficient to meet the wants of my customers, I write to ask you for a credit of $1000, for three months. For any information you may desire I am premitted to refer you to Messrs W. J. Gage & Co., of your city, and to Wm. Smith of this place. Awaiting the favor of an early reply. Very respectfully yours, Fred J. Pratt. Note :— The danger in a letter of this kind is that the merchant will get too anxious for credit and by using too many adjectives, loose his chances of accommodation. The object in giving a reference residing in same city as your correspondent is to expedite the shipment of goods. 8 — MACDONALD WRITES TO WM. SMITH FOR INFORMATION RESPECTING F. J. PRATT'S RELIABILITY. * Toronto, Ont., 15th April, 1889. Wm. Smith, Peterboro, Ont. Dear Sir: — Fred. J. Pratt of your town has asked us for a credit of $1000, for three months, referring to you. Kindly let us know by 90 y. early mail whether we would be safe in complying with his request and oblige, Yours respectfully, J NO. MacDonald & Co. 9 — smith's reply. Peterboro, Ont, i6th April, 1889. Jno. MacDonald & Co. Toronto^ Ont. Gentlemen:— Yours of the 15th, inst, inquiring of the responsi- bility ot BVed. J. Pratt, of this town, received. In reply I have pleasure in saying that he is known to be honest and reliable. Yours truly, Wm Smith. Note .•—You will please iiotic(! Uie absence of gossip in Uiis letter and the straight forward stiiteniont made, "'known to be honest and reliable." 10 — A referer's unfavorable reply to enquiries. Ottawa, Ont, i6lh April, 1889. Jno. Johnston & Co. Toronto, Ont. Gentlemen :— Yours of the i5th^ instant inquiring of the respon- sibility of VV. J. Wilkins, of this city, received. In reply I must say that it is rather doubtful whether you would be safe in giving him credit or not. He has lately made improvements on his premise,^ and incur- red other expenditures which I am satisfied the volume of business done by him does not warrant. Yours truly Albert Hall. Vote :— How soon business men detect a man's weakness or looseness in expenditure ? Always keep your expenses down to the lowest liniit. II. — REPORTING insolvency TO PRINCIPAL CREDITOR. Ottawa, Ont., 5th April, 1889. James Walker & Son., Toronto, Ont,, Gentlemen : — I have just finished "stock taking" and find from my *' balance sheet " that I am insolvent, happily my assets will realize considerably over 6o7o of my liabilities. I will notify all my creditors r 91 presently but os you are the one most concerned, I write to you first. My books are open for inspection. Yours faithfully, D. VV. Dawson. Note ;- -The iirincijinl creditor very oftflii beoonies tlie nsHlgnee. It is alwayu iin eviilcnoe of honcMty to have books in reailinetis fur exaniiuatiua by creditors at any tiuie. 12. — ORDERING BOOKS HY MAIL. Peterboro, 5th April, 1889. Messrs D. Appleton & Son., N. Y. City. Gentlemen : — For the enclosed amount, ($7.50) seven dollars and fifty cents, please send, per American Express, the books named in enclosed list and oblige, Yours respectfully, Albert Spraton. Note !— Always order on a sheet of paper sfiparate from tliai on which your letter is written, 13. — their reply, the order having been filled. 295 Broadway, N. Y. City, 7th April 1889. Albert Straton, Esq., Peterboro, Ont. Dear Sir : — Your esteemed order, for books, has been received and placed in rotation on our mailing list. You will doubtless receive them by early train. Thanking you tor the favor of your valued order, we remain, Yours truly, D. Appleton & Son. Note :— The prompt filling of an order is always an indication of method, and without method no business of any considerable dimensions can be organized, 14 — THEIR TiEPLY, THE ORDER HAVING BEEN PARTIALLY FILLED. 295 Broadway, N. Y. City, 7th April, 1889. Albert Straton Esq., Peterboro, Ont. Dear Sir : — Your valued order for books has been received. We have executed the same with the exception of the Dictionary. This we shall send you in the course of a week, unless advised otherwise. Yours very truly, . D. Appleton & Son. Note :— The reason for the insertion of the last words " unless advised otht ise."— to induce an immediate cancelling of the order for dictionary should the delay prevent the sale. IMAGE EVALUATION TEST TARGET (MT-S) 1.0 ■» Bfi 12.2 ^_^_z 1.1 liil 1.25 1.4 Jj6 6" Hiotographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14S80 (716)872-4503 6^ »#»■• I i :•*• 9St 15. — DRAWING ON A DEBTOR FOR AMOUNT OF OVERDUE ACCOUNT. Peterboro, Ont, 15th Oct., 1889. Mr. James Evans, JVoneiood, Ont. Dear Sir : — Your account which is past due, has attracted my attention. It is not customary with us to allow accounts to run past maturity and we have drawn on you through Merchants' Bank, for amount of your account ($51.75.) We trust thai you will duly honor the same on presentation. Very truly yours, RuFus Stevenson. 16. — requesting price list. Ottawa, Ont, 17th Oct. 1889. John Mathews, Esq., lot onto, Ont. Dear Sir : — Kindly send us your latest price list. Respectfully yours, Donaldson & Thompson. 17. — REPLY inclosing SAME. Toronto, Ont., Oct. 19, 1889. Donaldson & Thompson, Ottawa, Ont. Dear Sir : — Agreeably to your request, of yesterday, we inclose price list. Shall be pleased to receive your commands. Yours truly, John Mathews. NoTB .—Many men do one half the trade they might do, on account of their prucrastinatioa in illling mail and otiier orders. 18. — write, ordering goods of a firm first time. Peterboro, 17th Oct., 1889. John Mathews, Esq. Toronto, Ont. Dear Sir : — Please send per Merchants' Express, goods named below, selected from price list received to-day. Draw on us at sight and refer to A. B. of your city. Very respectfully yours, Donaldson & Thompson. NoTBt— Reference to A, B. ia made so as to establish your credit without delaying the ship- ment of goods. 93 my ast int on )se 19. — APPLICATION FOR AN AGENCY. Port Hope, Ont., 17th Oct., 1889. jAb. Shaw, Esq. Toronto, Ont. Dear Sir : — Your advertisement in to-day's Mail calling for ap- plications for agents has come to my notice and I hereby respectfully offer my services. I have had experience with the following firms to whom I am premitted to refer : Robertson & Son, Whitby ; Garrettson & Son, Guelph ; Rose, Belford & Co., Toronto, Ontario ; and a grad- uate 01 a first class Business College. Should you grant me an agency I shall be pleased to enter upon my duties immediately. Very respectfully yours, Harry Oke. Note.— It is unnecessary, iii writing a letter similar to above, to five your historys to urge your claims. Never tell out the pathos of your business life, Let the heavens alone hear the story of your failures. Men have neither the time to listen nor the sympatliy to aid. 20. — INCLOSiNG SUBSCRIPTION TO A PAPER. Port Hope, Ont., April ist, 1889. Publishers "Tribune," N. Y. City. Gentlemen : — Inclosed please find seven dollars, being subscrip- tion to your paper, the Daily Tribune, for the year ending April 25th, 1890. Respectfully yours, S. E. K. Walker. 10m ed [ht lip. 21. — CIRCULAR LETTER TO THE PUBLIC ON BEGINNING BUSINESS. Ottawa, Ont., ist April, 1889. Dear Sir : — I take pleasure in announcing that I have opened a dry goods store at No. 420 Sparks Street, next door to Fairweather & Co's Fur store. I have had some experience with the best houses in this line of trade, and having selected my stock with care I hope to be able to please all intending customers with the quality and freshness of the goods, and the lowness of the prices. My stock of spring goods which will be opened on May ist inst., is most complete and com- prises many novelties for the coming season. Awaiting the pleasure ot seeing you early . I remain, Sir, Yours respectfully, W. H. Connor. 420 Sparks St. 04 I 22— COMMISSION MERCHANT SOLICITING CONSIGNMENTS. Ottawa, Ont., March 6th, 1889. Jas S. King, Pictorty Ont. Dear Sir : — We desire to call your attention to our facilities for placing large consignments of fruit before the trade in this district with the utmost care and despatch. We have been for sometime engaged in the business and have established an excellent business connection. We handle all hardy fruits on a commission of 3%. Quick returns may be anticipated. Hoping to hear from you at your first convenience. We remain. Yours respectfully, Banneli- Sawyer, The student should study the above sample letters, carefully read- ing the notes subjoined, and then write at least one each week of the following letters, etc., and place on Principal's desk. Letters must be well written on writing paper, enclosed in sealed envelope and properly addressed, giving initials of writer on the envelope in lower left corner. 23. — Write a telegram not exceeding 10 words, ordering 6 pes. Can- adian Tweed of John Macdonald, Toronto, telling him to draw on you at 30 days. 24. — Write telegram to Ottawa, before opening of Parliament, engaging rooms at the Russell. 25. — Cablegram to Liverpool, advising Messrs. Charring, Reed, Clare & Co., of your shipment to them of 500 beef cattle, in charge of S. Evans. 26. — Write a letter to Smith, Elliot & Co., Toronto, asking credit for Wm. Jones, Lindsay. 27. — Write a letter of Introduction and Credit. 28. — Write, answering an advertisement for Book-keeper. 29. — Application for position as Traveller, in answer to advertisement. 30. — Write a recommendation of a general nature for a young mam. 31. — Apology for breaking a business engagement. 42. — Write a letter giving some advice to a young man about to enter business. Note !— For iDstructiona respecting the fonn, arrangement, parts, etc., of letters see " Stud- ies." page 00. REMARKS — ON — RETAIL SET 1- BUSINESS, ADVERSE— SINGLE proprietor. Special-Cash Book, Journal and Ledger are used as principal books ; and B.B. and Personal Ledger as auxiliary. The Order Book is usually kept lying on the counter, and entries made as they occur. In the evening those that remain unpaid are entered in the Personal Ledger. The Personal Ledger contains accounts with customers only, and is an auxiliary book. Sales on ac. are regarded as merchandise on hand until the accounts are paid, when Mdse is credited. The ordinary Journal ruling is preferable for a Personal Ledger of this character, be- cause it affords more space for items. All statements of accounts may be made out from the Personal Ledger without referring to any other book. Take off a Trial Balance at the end of the week, close the loss and gain accounts and bring down Inventories. Accounts remaining unpaid in the Personal Ledger must be added to the Merchandise Inventory. Keep no bank ac. in the Ledger. Keep no Cash account in the Ledger : but to get your Trial Balance you must enter the balance of Cash on the debit side of it. The C. B. balance will show ail cash in Bank and on hand. Credit cash when a check is given ; make no entry for deposits except on stub of Check Book. The C. B. will have an extra, or a special column on the credit side for "Expense," the total of which may be posted weekly or monthly to the Debit of Expense. Also an extra column on debit for " Mdse . " In the Journal a special column is kept for the debits ( purchases ) of mdse. The sum of the column is posted in total. Do not post the separate debit items of mdse . NOTE WELL. While this method of keeping books for a retail business is here illustrated we cannot fail to state that another and very different com- bination or set of books might be made to do equally well. Choosing books is exercising judgment, and we think you will display good judgment by being slow to introduce new books or new forms into a fairly well regulated office unless or until there seems to be a well defined need of a change of some kind. 7 i889. LF Oct. 4 11 8 V 11 9 II II 2 96 CASH.— Receipts. Ledge[\uies. Explanation. Stock Investment in Cash Mdse Sales 26.32, ale's 3.75. . . Bills Rec J. Jones Mdsb Sales Total to Credit of Mdse.. Oct. 10 Balancb 1514.67 734.00 Sample Account as it appears in Personal Ledger. MRS. JOHN JONES. 1889 Oct. Description of Purchases. To 14 lbs. G. Sugar, 1,00; 17 lbs. B. Sugar, i.oo II I pk. Potatoes, .25; i gal. Apples, .15 .... By Cash To 4 lbs. Crackers, . 10, .40; Sack Salt, .20 . . II 2 II Raisins, .8, .16; 5 lbs. Sugar, .lo|^, .53 Balance of ace. per statement of £cc. rend.. 1.94 By Cash 11 Balance , Debits. 40 60 69 69 Credits 75 94 69 97 m 75 94 69 CASH. — DiSBURSEMENlS. Cr 1889. LF Ledg«Tities. Explanation. Ex- pense. Items. Total. Oct. 5 Fixtures .Safe 125, Store & office 130. . . 255 1 tf II tl V Expense . . Horse and waggon 200 5 II Private s @ 25c.; 2 fts Java Coffee, @ 35c. (P. L.) . , , Mrs. K B. Stone, Brock Street, 14 fcs. G. Sugar, $1.00 ; 2 fi&s. Loaf Sugar @ 20c. ; i bag Potatoes 75c. ; 14 ffi>s Haddie @ iic. (P.L.) Mrs. R. E. Wood, Water Street, 10 fts P. Butter, @ 23c ; J^ ft A. Spice, @ 40C. ; (i) 10 ft. sack F. Salt, 20c, 3 doz. Eggs @ 14c. ; i Lem; Ext, 25c, I Can Oysters, 40c. ; 2 fts. Crackers @ roe. (P. L.) /' 100 Memo : — Paid, per check, Invoice of Provisions bought of S. Howell & Co., Ottawa, @ 30 days, amounting to $135.76 ; Dis. off 37.. [C. B.] NoTB.— Th*s discount beiiiK allowed off the bill and the bill being paid before any entry hat been made o;' the transaction, we therefore take no further notice of the discount. Enter the net amount $131 60 only. ^ips on File as fallows'. — Vegetables, Poultry, Ac, bought at Market, paid, per check, $43.75. (^' B) Order Book Charges : — Mrs. J. R. Stratton, Aylraer Street, 3 lbs. Mackeral @ 8c.; u^ fcs. chicken @ 12c. ; 13 lbs G.Sugar, $1.00; 2j4 R>s. Lft Sugar @ 20c. ; 5 lbs. Honey Soap, @ 17c. ; i gal. Coal Oil 30c. 8 Memo'. — Bot. at Market; Vegetables, Butter, Poultry &c., for which I paid, per check, am't, $63.42. Invoice of Biscuit from J.Hall, town, $23.71, paid per check. Feed for ho se, $17.25, per check. (C.B.) Slips on File'. — Rec'd on a/r., Mrs. Jones, Cash $1.75 ; Mrs. Stone, $2.00. Cash Sales, per C. D., $26.32 ; add this to the amount receiv- ed on accounts, $3.75, making the credit to Mdse. $30.07 Non '.—Credit each account in the Personal Ledger, and you add the sums paid you to the cash sales for the day, and thus in the Cash Book, credit Mdae, by the total amount. The reason you credit Mdse. now. is because you did not credit Mdse. when the goods were sold. The following charges in the Order Book are still unpaid : Mrs. E.L. Wood, 10 lbs. G.Sugar @ 12^ c; i lb. Japan Tea @ 45c. ; 2 lbs. Biscuit @ i2c.; 4 lbs. F. Haddie @ i2^c.; }i Gal. Coal Oil @ 35c. Mrs. John Jones, 4 lbs. Crackers @ loc; i Sack Salt, 20c. ; 2 !bs. Raisins @ 08c.; 5 lbs. Sugar @ \0y2C. Mrs. A. L. Davis, i lb. Pepper, 25c.; i lb. Starch, loc; ^ lb Soda @ loc; }i lb. Crm. Tartar @ 20c.; 2 oz. Allspice, 05c.; 2 lbs CFish @ 7c.; 1 Can Friend's B. Powder, 2Sc. Mrs. J. D. Macdonald, Rubidge Street, i Can Salmon, i8c.; i oz Cloves, 05c.; 5 lbs Butter @ 22c.; 25 lbs. Pastry Flour @ 3c.; ^ Gal. Coal Oil @ 35c.; I doz Eggs, @ 12c. ,. ' Rec'd payment for J. Jones' note. Paid, per check, for carpenter work on counters and bins, $23.35. ' NoTK :— This item should be charged to "Fixtures" because it makes bins, &c., more valuable end is of the nature of a permanent improvement. If, however, the work on bins, &c., were of the nature of repairs, then Expense ajc. would have been charged. ■i'<\*: ■ " ■ ^^•••'■:;"' ■• 101 Slips on File : — For private use, cash, $8.00; goods, $7.50 Paid Clerk one week's wages, $7.00, and messenger, $2.50 Note :— If there were many hands employed it would be well to open a "Wagei" or ••Salary" a/e. But here in this case you debit "Expense." Cash Sales:— ^tr C. D., $59.60 The following charges in the Order Book are still unpaid : Mrs. J. English, Water Street, i box Starch, 6 lbs., 45c.; i bbl Apples, $2.00 1 pk E. B. Potatoes, 25c., i Lem Extract 12c. 2 doz. Eggs @ 12c. Mrs. J. I. Davidson, Bubidge Street, 5 lbs. L. Baisins @ 23c ; i nest (3) W. Tubs, 750., $1.00, $1.50; 2 lbs. Japan Tea @ 60.; i lb Black Tea, 45c. Mrs. R E. Wood, i box soap, $2.10 ; i bbl. Apples, $3.60; i bbl. XXX Flour, $6.75. Deposited cash, $90.00 NoTi:— Render statements of ale. to Mrs. Jones and Mrs. Stone. Balance O.B. and carry balance down to debit side. II' Paid cash for painting counters, $6.25. Bot. Fruit, Vegetables, &c., per check, $13.75. Bec'd ona/c, Mrs. Jones $1.00; Mrs. Davis, $5.00 ; Mrs. B. E, Wood, $6.00; Mrs. Stratton $3 . 00. The following charges in the Order Book are still unpaid : — Mrs. Stratton, 25 lbs. O. Meal, 70c. ; i qt. Oysters, 40c ; 2 lbs. Biscuit @ loc; I bbl. Apples, $3.25 ; 2 crates Peaches @ $3.25. Mrs. Geo. A. Cox, i bbl Flour, XXX, $6.75'; i bbl. Apples, $3 25; I box L. Raisins, $5.15 ; 2 lbs. J. Tea, 60c.; i lb Black Tea, 45c,; 6 lbs. Mackeral @ 8c. Mrs. E. B. Stone, 3 lbs. V. Grapes @ 15c.; i lb Honey, 20c.; 1 gal. C. Oil, 35c.; I pk. Potatoes, 25c.; 1 fb Java Coffee. 45c.; 2 lbs. crackers @ i2jc.; 2 lbs. Chicken @ lajc. Paid cash for horse-shoeing, $2.00 ; postage 25c. Paid cash for bill heads and envelopes, $2.50. Cash Sales : — Per C. D., $136.71. Rec'd on ac. as above, $15.00. Total cash received, $151.71. 12. Memo : — Paid for coal, $7.00, per check. Paid for stove and fixtures, $37.35, per check. Paid by check for ma ing coal bin, $2.00, NoTi :— Charge ''Fixtures" account for all except coal which is an expense Item. 102 Order Book Charges: — Mrs. Wm. Leek, Hunter Street, lo lbs. G. Sugar, $i.oo ; !?5 lbs O. Meal, 70c.; i lb J. Tea, 60c.; i lb Java Coffee, 45c.; 5 lbs L. Raisins @ 23c. Mrs. W, H. Thompson, Reid Street, i gal. Syrup, 850.5 2 W. Pails (^ 20c.; I Market Basket, loc, i Lem. Ext, 15c. Note!— Render 8tat<)inenta of aci. to Mn. Cox and Mrs. R. E. Wood, The following sums wete rec'd on account ; — Mrs. Cox, $10.00 ; Mrs. R. E. Wood, $6.00 ; Mrs. Stratton, $5.00 ; Mrs. Stone , $2.00. Cash sales, $295.50 ; total cash received to-day, $295.50 +$23.00, $318.50. Deposited $450.00. Remitted checks to John Macdonald and J. S. Shorey & Co. in full of account. NoTK !— Post entries, take a Trial Balance and dose fluctuating accounts into "Lobb and Oaln.' Place Inventories on credit side of accounts to which they belong, in red ink, and after cli sing these accounts bring down Inventories to debit side of account, using black ink. Next c/o«< tlie net gain or net loss into stock, this shows the net vxrth at the time of admitting your partners (which will be done in the Wholesale Grocery set). Next close Stock and bring down balance iu black ink to credit side. The sum of the debit and credit Ledger baUnces should be equal. Put personal a/o Inventory on credit side of Mdse. along withamount of unsold goods. Private accounts dose into Stock. Inventories : Mdse $2820.75 Personal ac's 44.48 Expense 200.00 Fixtures 275-00 Net Loss $ 27.41 Net Worth 2573.34 Footing of T.B. 5947.90 Accounts to be opened in the Ledger with number of lines re- quired for each. Stock, 5 ; Bills Rec, 2 ; Bills Pay, 4 ; Mdse., 7 ; J.Macdonald, 2 ; J. S. Shorey & Co., 3; Expense, 4; Private ac. 4; Fixtures 7; Loss and Gain, 4. \ ■' QUESTIONS. COVERING RETAIL EXAMINATION. What books are used? Give the advantages of using special columns. Describe the use of the P. L. Distinguish between expense and private a/cs. Why is no cash a/c. kept in this set ? :"u^ 1(.'3 SPECIAL COLUMN JOURNAL. Ottawa, Ont.,Jan'y 4th, 1890. Mdse. Dr. Cash Dr. Exp'ns Dr. S'ndr's Dr. If 2 If S'ndr's Cr Cash Cr. Mdie. Cr. 400 Mdse. Dr 100 200 2 3 Cash Dr B. Rec. Dr To Mdse Sold to J. Jones, red'd in paym't 2 1 1 1 700 1 J 26 1 I 2 5 Mdse. Dr Expense Dr To Cash Bot of S. Evans, per invoice No. i; freight $1. 2 27 b 1 50 5 Expense Dr To Cash Office books. 6 2 I 50 20 10 2 CashDr To Mdse Sales. 2 20 10 y 2CX3 2 Cash Dr To B. Rec 3 200 ' — 2 SO 2 320 426 948 50 10 J. Smith's note. 28 720 948 50 10 60 28 50 720 320 10 ^-" 42b 1 Note. — This set may be worked with a Journal of this Icind if thought advisable. An ordinary retail business is presumed; othewise we advise the buolis indicated at beginning of set. If ttiis book be used, the ordinary Journal and Cash Book may be dispensed with. 1889. .104 CONSIGNMENT "A". Cr. Sept. Cash, 100 bu. wheat @ 75^. Cash, loo bu. wheat @ 50^. 7^ 1 1 5" •25 125 REMARKS — ON — SHIPMENT AND CONSIGNMENT SET 2. BUSINESS, ADVERSE.— Single Proprietorship. The Journal, Commission Sales Ledger and C. B. are kept in this Set as principal books from which the posting is done direct. The Commission Invoice Book is used to enter abstracts of in- voices received. Enter the Consignments as i, 2, 3 &c. Invoices should be checked over with goods, and boxes, packages, parcels, &c., marked with distinguished numbers. Different consignments from same person should be marked A, B, &c. No posting from this book. Any entries pertaining to consignments must be made intheC.S.L. Entries involving cash, are entered in the C. B. All others in the Journal. When entries are partially cash, the entry is made complete in the Journal and then the cash entered in the C.B. Special columns may at any time be added to any of these books in actual practice, when the posting is heavy and it is deemed advisable to add special columns. When a consignment is received, check over the items with the Invoice received, and mark the goods in such a way that it will after- wards be easily seen where they belong. The Invoice should be folded, filed and pasted into what may be called a Commission Invoice Book. In the Commission Sales Book, or Comission Sales Ledger, open the ac and simply state ^hat the Consignment has been received, giving date. No Journal entry, that is, no debit or credit is affected yet, unless you either pay or assume charges, freight or the like, at time of receiving goods. ^^ 105 Sample Pages of the Commission Sales Ledger. 1889. Dr. No. I, TAYLOR k GO'S. (Stittsville.) Sept. 7 V 29 II II 29 V Cash, freight (on 200 bu. wheat reed @ 50^. Commission, 3% on sales $125 Insurance, l% on sales $125 Storage, l cent per bushel on 100 bushels. . . Cash, proceeds remitted 20 3 I I 75 25 00 26 99 125 Note.— Cash is not posted from C. 8. L. as it is placed in the C. B., and there the entry is also checked ( V) off, Cash acct. not being opened in th6 Ledger, I (I t( SET II.— COMMISSION. Sept. I St. Student has leased store on Sparks St. and commenced bus- iness as Commission Merchant and Shipper and agrees to pay a rent of $600.00 per annum. Note :— My Capital on beginning busiuess is 12000. Cash. Goods on hand JIO.OOO, for which I owe McKay & Co. 910,000, " I insure my stock for $10,000 @ }( 7^, paying premium in cash. (C B.) Deposited Cash in College Bank $2,000.00. (C. B.) Bot. of McKay & Co. on acct. : Flour and Feed as per Inv. $678.00. (J.) Sept. 4th Sold Wm. Switzer on 90 days acct : 10 bbls. Flour @ $5.00, 300 lbs. Oatmeal @ 2c. (J.) " Bot of Martin & Co. on note @ 2 mos. : 500 bbls. Flour @ $3.80. (J.— B. B) " Sold Jas. Smith on note at i mo. : 50 bbls. Flour® $5.00. (J.— B. B.) Sept. 7th. Had Smith's note discounted and proceeds received by check on Bank of Toronto, $245.00. (C. B.— B. B.) Bot. of Jackson & Co. on note @ i mo. : 700 bu. Barley @ 60c. (J.— B. B.) « u (i l< 106 Sept. 7th. Ordered of McKay & Co. Mdse. as per Inv. amounting to $80.00 and gave in payment check on College Bank. (J,— C. B.) " Shipped to Willoughby & Co. Chicago : 200 bbls. Flour valued @ 3.80. (J.) " Rec'd. of Taylor & Co., Stittsville, for sale on their ac. and risk :2oo bush. Wheat valued at 50c. bush., and paid freight in Cash $20.00. C. S. L. and C. B. Sept. 8th. Sold for Cash to-day, per order book $250.23. (C. B.) " Paid for circulars and postage, in cash $12.15. (C. B.) Sept. 9th. Shipped to McKay & Co. to be sold on my acct. and risk 100 bbls. Flour valued @ $3.80. (J.) Sold G. P. Brown shipment to McKay before receiving ac. sales, gave Bill of Sale, and notified McKay & Co. to forward shipment to Brown. (J.) Sold from Taylor & Co's consignment, for cash. V 100 bush. Wheat @ 75c. (C. B ) Shipped to Brown & Co. Montreal 500 bush Barley valued @ 60c. (J.) Sept. loth. Drew on Wm. Switzer @ 20 days through College Bank, to balance a/c. Take off Trial Balance, after posting. Sept. nth. Admitted J. N. Taylor and J. Law as partners with Capital of $1,000 each, Gains and Losses to be shared accord- ing to investment. Hired Thomas Good, and Geo. Abbot as clerks at $8 per week, and Frank Stowe as bookkeeper at $50.00 per month. Sold Wm. Gee for Cash : 100 bu. Barley at 75c. Bot. of Martin & Co. on 3 mos. time : 500 bu wheat @ 60c. Sold James Smith, on account. . 150 bbls Flour @ $4.50 Had my note for $130 discounted at Bank and for }4 pro- ceeds rec'd a certificate of deposit bearing 5% int., the remainder to be placed at my credit. « C( la u 13 t ., 107 t I' t< 14 (( IS 16 18 « Sept. 13th. Sold James Stitt for note @ 3 mos. Flour and Feed as per invt'y $378.00 Sold W, M. Little on 3 mos. credit 500 bu Barley @ 8oc Bot. of McKay & Co. on 2 mos. credit : 75 bbls. Flour @ $4.00 Exchange with W. Smith my note @ 5 days for $100 for his for same time and amount. Took out a policy of Insurance on Store, Fixtures and stock for $3,000.00 at Soc. per 100 Purchased a 60 day bill of Exchange on London for ;^3 8s 6d. @ $4.82. Note :— The value of a £ Sterling is $4.86 §, but as this bill is paid for 83 days before it matures, Bankers allow interest to the purchaser, who thus inalces in interest more than the cost of Ex- change. Hence the quotation at less than actual value of sterliug money. Paid for advertising in 2 City papers, $28.00. J. N. Taylor and J. Law each withdrawn one-third of their Investment in Cash. Bot. of Martin & Co. on note @ 4 mos. 300 bbls. Flour at $3. 75 Bot. of McKay & Co.: 100 bu. Rye @ 40c. 100 bu. Biirley @ 6oc., and gave in payment Smith's accommodation note* Had bill of Exchange collected through Bank of Toronto ® yi% Exchange. Proceeds in Cash. Shipped Martin & Co. to be sold on our acct and risk : 100 bush Rye valued at 40c. Rec'd from Macintosh & Co., Montreal to be sold on their acct and risk : 300 bbls. Flour valued at $4 25 Paid MacKay & Co's. Bill of ist, inst. by draft on College Bank which I purchased by check. Sold Macintosh & Co's. consgt of 300 bbls. Flour at $5 per bbl. and rendered acct. Sales' Commission 2%, storage 4c. per bbl. Note ;— In this entry there are two journal entries involved. When the sale is made the cash should be debiti d and the consgt. credited. When the acct. sales is rendered the consgt. is debited and then closed by crediting Commission, Storage and Macintosh, by the net proceeds. You credit Macintosh witli the net proceeds because you retain them in your possession, subject to his order. II 11 19 It II 1 (( (( 20 108 Sept. 19th. Shipped Craig & Co. Toronto, to be sold on our acct and risk : 100 bush. Barley, valued at 60c. Drew on James Smith, through Bank of Toronto for a- mountof his bill of 12th inst. Bot. of McKay & Co. for check : 400 bush. Oats @ 55c. 200 bbls. Flour @ $3.50. Had Jas. Stitts* note discounted at Bank 30 days before due and proceeds placed to oui credit. " Rec'd acct sales from Craig & Co. Toronto of 75 bush barley @ 86^c Pro. in cash $65.00. " Rec'd from Blythe & Co. to be sold on their account and risk 75 bbls. Flour valued @ 3.50. " Sold from Blyth & Co's Const. : 50 bbls. Flour at $4 and rec'd. in payment a certified check. " Paid clerks and book-keeper in full ; keeping the acct of each separately. " Take off a trial balance after having posted up to DATE. Sept. 2ist. Deposited in College Bank $100. '* Rec'd from Taylor & Co. Stittsville to be sold on their acct. and risk : 1000 bush. Wheat valued at 55c. Pd. freight in Cash $12. ** Took to my own acct. by consent of Taylor & Co. the goods belonging to his to-day's consignment. Rec'd. from Macintosh & Co. Montreal to be sold on their acct and risk : 500 bbls. Flour valued at $3.85 and paid freight in Cash $38.00. Bot. of McKay & Co. for check : 300 bbls. Flour at $3.00. Shipped to Jenkins & Co. Montreal the Consignment rec'd. from Mcintosh & Co. and had goods Insured at j^ */, of value. Paid premium in cash. Shipped Charleston & Co. Quebec to be sold on our acct. and risk : 200 bbls. Flour valued at $3.00 (t 22 ' <^ :. and for a- ' re due bush t and rtified LCCt of JP TO r acct. goods their ; and rec'd. 1 our 109 Sept. 22nd. Shipped Burke & Co., Brockville, to be sold on our acct. and risk : 1000 bush. Wheat valued at 55c. Rec'd of Brown & Co., Buckingham, to be sold on their acct and risk : 560 bush Indian Corn valued at 30c. T. N. Taylor withdraws from the firm }( of his original investment in Cash. Rec'd of Taylor & Co.,Stittsville, to be sold on his acct. and risk : 280 bags Gr. Flour valued at $1.20. Bot. of Martin & Co on 4 months time : 350 bbls Flour @ $3.75. Rec'd from Burke & Co., Brockville, an Account Sales of our shipment to them. Our net proceeds received in Cash. $567.00. Shipped to McKay & Co. to be sold on our acct. and risk 200 bbls. Flour valued at $3.75 Sold Jackson & Co. tor check 150 bbls. Flour at $4.50. Sold James Smith on 60 days time, 150 bags Gr. Flour at $1.60 from Taylor & Co's Consignment. Had our note for $400.00 discounted at Bank and proceeds placed to our credit. Rate 7%. Time, 3 mos. Sold Switzer & Co. for an endorsed note at 3 mos. from Taylor & Co's. Consignment : 130 bags Gr. Flour @ $1.75 . Had Switzer & Co's note discounted and proceeds placed to our credit $223.00. Rec'd from Blythe & Co to be sold on their acct. and risk 200 bbls. Flour valued at $3.50 Shipped to Burke & Co., Brockville, to be sold on our acct. and risk the consignment rec'd from Blythe & Co. Sold for check all Mdse on Hand for $600. 1 Take off a contmued trial balance. 2 Take off a statement of Losses and Gains. 3 Take off a statement of Accts. Receivable. Accounts to be opened in the Ledger with the number of lines re- quired for each. Leave 6 lines each for the following accounts : Stock, Mdse., B. Receivable, B. Payable ; 3 lines each for the others except Loss and Gain which should be allowed 12 lines each. 23 « (( 24 « i( « 25 (( 26 t( 28 <( 29 C( no CONTINUED TRIAL BALANCE. o S5 I 2 3 4 5 6 7 8 9 lo II 12 13 14 »5 i6 17 i8 19 20 21 22 23 24 25 26 27 Ledger Titles. Stock Cash Bills Receivable Bills Payable Mdse Balance from C . S . L . . College Bank McKay & Co William Switzer. . . . V G. P. Brown Shipt. to VVilloughby. . Shipt. to Brown & Co. Shipt. to McKay. . . i/ Discount Expense J. N.Taylor J. Law Martin ft Co ]as Smith Certificate of Deposit. . W. M. Little Commission Storage Shipt . to Craig Mcintosh , Shipt . to Martin Advertising Sept. lo, 1 88 Dr. Cr. loooo 12000 2570 23 2057 306 250 2320 13078 1996 55 2000 80 10678 380 760 300 5 37 •5 3~8 29436 29436 15 23 38 188 Sept. 20 ■ Sept. 30, 188 Dr. loooo 6426 1475 15823 2437 678 380 760 300 14 127 583 333 61 400 60 21 Cr. 40 28 39928 69 19 10 06 1200U 3108*32 874|SI 3545 36-4 255 1678 10978 1000 1 000 300 3" 12 65 1458 23 3992806 NoTB.- -The student is expected to And all these results indeiiendently; and to find the results of the posting on the 20th Sept. as well. QUESTIONS, ON CONSIGNMENTS AND SHIPMENTS. What is a consgt. ? What entry is made upon receiving a consgt. ? How is it closed ? When is a shipt. debited ? Why do consgts. close when disposed of ? What does the difference in the sides of a shipt. show ? Do you post consgts. to the General Ledger ? If not, how is the trial balance made to balance ? 23 REMARKS — ON — CASH JOUHNAL, SET 3. A CONVENIENT METHOD FOR SOCIETY BOOK-KEEPING, AND WHEN BUSINESS IS NEARLY ALL CASH. To save time and labor when the receipts are mainly cash : 1. Find your Journal entry of each transaction. 2. If cash be the only debit, enter all the credit items on the debit side of the C. B. 3. If cash be the only credit, enter all the debit items on the credit side of the C. B. 4. If no cash is involved in the entry, put the credits on the debit and the debits on the credit side. In this way you increase both sides equally and thus leave cash account undisturbed. 5. If one of the debits or credits be cash, strike it out and enter all the remaining debits on the credit side of the C. B. 6. In Posting to the Ledger transfer the balance of cash only to Cash ajc. Note:— The Student should work out this set by taking all the entriei from and beginning with No. 32 on page 68. The Cash Journal s .ould be balanr.ed five times, aa follows ; after 39th, 4fith, 64th, 60th and 65th entries. The following accounts should be opened : Student, 4 lines ; W. Green, 4 ; Brouse Bros, 2 ; Cash, 2 ; Musgrove. 2 ; Mdse., 6 ; Bills Rec, 4 ; Bills Pay., 4 ; E. Robinson, 2 ; Sinclair, Jack & Co., 3 ; J. Hope & Co. 2 ; J Gibson, 2; Interest, 2; J. Lang, 2 ; Expense, 2 ; Ex- change, 2 ; J. Macdonald, 2 ; Discount, 2 ; H. W. Kirby, 2 ; J. G. Blaine, 2 ; Fixtures, 2 ; QUESTIONS, ON CASH METHOD. To what kind of business is the Cash Journal adapted ? What are its advantages ? What does the sum of each side represent ? What does the balance show ? How are time sales entered ? How are part payment entries made ? 8 : I REMARKS — ON — MANUFACTURING SET 4. PARTNERSHIP BUSINESS, PROSPROUS. Books Required. — Journal, C. B., Sales Book, Ledger, as principal books ; and a Hands Register, B. E , Collateral Security Register and Collateral Receipt Book as auxiliaries. Jourtii .': — Contains all entries that cannot properly be made in other books. Cash Book : — This book is kept as usual, excepting that the debit column on the left hand page is used for entering all cash sales of mer- chandise. All " Regular " bills have four months to run, and if settled for within 30 days, *he debtor is allowed a discount of 5 per cent. Be sure in such cases to credit the purchaser in the C. B. for the whole amount of the account, and debit Discount account on the other side of the book, for the discount. When the C. B. is balanced carry the footing of the Mdse. column to the credit side of Mdse. ac. in the Ledger. Goods sold for "Net Cash" are supposed to be settled in 30 days and are, after that time, if unpaid, subject to draft at sight. "Regular" bills are subject to draft after 4 months, or at 4 months from date of sale. Prove the C. B. every evening, it need not be closed oftener than once a week. Bill Book: — Needs teacher's special attention. Ask. Sales Book : — This book contains all sales. The debits are made direct ; the Mdse. is credited at the end of each week. (In practice at the end of each month is usually the time for posting.) Hands Register: — This is a book ruled like a continued trial balance. The Cr. column contains the daily, weekly, monthly, or yearly wage, earned by each employee, and the Dr. column contains the amount of value actually received by each one. The difference in the columns must show how the accounts stand. 113 A Stock account is opened in this set instead of partner's accounts. This saves space, time, and keeps he curious from being unduly en- lightened. A Plant Account is one kept to ascertain the cost, wear and tear, etc , of the machinery and tools required in a manufactory. This ale should be charged at the close of the year with intere t on the money invested and the wear on machmcry, etc. The Collateral Security Register is a book into which full particulars are entered respecting long time paper received for machinery or manu factured wares sold. In the case of Agricultural manufactories, the goods are usually sold on long time paper, which are often attached to the 4 months paper of the Manufacturer and held by the Bank as Col- lateral security. In this case it is not the farmer's note that is discount- ed, it is the manufacturers'. The Collateral Receipt Book is a book in which is a description ot all the long time paper in the hands of the bank and contains also the receipts signed by the Bank showing the paper in his possesion. The Counter Books : — In many Manufactories there is a book ly- ing on the counter in which all transactions are entered by the sales- men, or clerk, and from which the Journal, Sales Book and C. B. are written up, A convenient plan is to have three different Counter Books, one for sales, another for purchases and another for miscel- leanous items. Nora:— We herewith give forms of Collateral Register and Collateral Receipt Book. The use of each will be readily seen from these forms. Ottawa, August 23rd, 1889. Col. Reg. Folio. Received of Campbell & Co'y, this 23rd day of Aug- ust, 1889, the following promissory notes for credit of his Collateral Account at this Ontario Bank : Watson & Co , Ottawa, due 2/9/89 G. G Gold & Son, Almonte, h 30/8/89 Signed, C. Magill, A/fn O. B. 400 200 l4 o . o s n a ui I- I H 6 •" OQ 2 : ^ a o lU I •^ i 2-S III • 1 8 M N 5? 5 8 8 O M 8 8^ 8 8 o 8 vS 8 M 8 8 ^ 5- 4-rf M 8 c8 8 s8 o 8 8 8 ; a ^ 1 1 8 8 8 to 8 8 8 8 8 8 00 • e2 vO VO ^ * fO VO ■^ m ^ vO VO vC VC > VO (/) fu PLi ^ p^ &< iSi < PL< Pm Ph (X, PU, P « Ph Ph (« PL, PLi P^ in U O H O to a a o m --^ < a> en II o 3 V a o M O cd Q ft Note;-"!" after "F" In the Time Book meanit 'Oate. • 115 8 1^ SALES BOOK. Ottawa, Ont., ist December, 1890. I LF 12^ 1. Cooper & Haight., Dr., (Picton.) Reeulnr. Net. Total Dec. a No. 33 Walnut Beds 21 2 II II Wood^Top Press . . 34 2 II 2 Towel Racks 330 4 II 80 Chairs .... 18^ 2d II 40 (4 11 30 18 1 •3 2A. II <7 It , 108 14 •I Geo. Lapum, Dr., (Fairport.) 6 Best Sideboard Beds 12 60 6 Hieh H. D. Cots I"; 3' > 6 Low do. 1440 2 Imoroved Con. Chairs 57 22 a dS No. 72 Lieht do 2A II Dark do II 1 14 x II nl II GO. ..■■■•■■•• . 38 4 84 84 II H. Brennan, Dr , (Ottawa.) 2 '5 12 No 16 Manle Chairs 21 6 21 60 II D. Pierson, Dr., (Toronto.) 12 No. 2( Chairs 144 10 i 2 16 12 II 57 II 9 33 90 II Lee Bros., Dr., (Oxford.) 2 No 33 Walnut W. T. Suit 69 s Tete in Jute 44 Ford Rockers 22 Arm Chair 10 H. )So 1938 200 18 393I98 Notb.— Continue entries in sales booli as illustrated above. Add at the foot of each page, and oarry lootings forward as in Journal. ' 116 Collateral Secur NOTES HELD AS COLLATERAL SECURITY ON When E«od No. 1889 Aug. 23 II II II 24 M II PROMI880B. Weston k Co . Leask & Co. . . W. Griffin.... H. Johnstone . OCCUPATION. ADDRESS. Ottawa Toronto Otterville Drumbo Due I)at«. 2/9/89 30/8/89 .0/9/89 9/9/89 PIECE WORK TIME BOOK— Pieces, Wagks, Pay. No. Name. Date— Decembbr 6th, 1890. Date. Quantity Rate. Amount. Rec. Pay J.C. Quantity. 73 /\mount. R'd Pay. Initials. I Case. Chairs 40 10 $4 00. PAY ROLL FOR THE Month ending July 27TH, 1890. !2! P Names. Occupation WAGES, Rate per Month. Am't. Deductions $$$ c. 10 3 5 SO Amt. Net Am't 56 50 Signa- tures. I Jas. Jones. Millwright. $ c 78 00 I7S50 18 50 J. Jones. 117 R N .( iTY Register. ACCOUNT OF A.R.COOK vs. STANDARD BANK. Amt. of iinUs to be entered u a debit Amt. of note taken out to iM entered aa a credit. Balance of notes on hand. Notea given favor of Bank. Bank notea retired. Dat« when paid or given up 400 500 500 1 200 200 1000 30/8/89 600 600 625 1 1 I 1 Fati or. A. (This is the Book-keeper's initial for the $200 note.) SET IV.— MANUFACTURING. I, 18- Resources of J. Campbell & Co., Furniture Manufacturers : Real Estate: — Manufactory $30,000.00; Warehouse $40,000.00, Total $70,000.00. Merchandise: — Manufactured $15,000.00; Lumber $16,000.00; Hardware $2,800.00 ; Fabrics, etc., $1,400.00; Varnishes, Oil, etc., $1,000.00. Total $36,200.00. Machinery and Tools: — $10,000.00; Office Fixtures^ Safe, Desk, etc., $700. Ontario Bank, on deposit, $8,973.68; Cash in Safe $422.28 Bills Receivable .—Note of K. Burns, Toronto, at 3 months from Sept. ist., with interest, $1,730.00. Note of J. K. Pierce, Hamilton, at 3 mos. from Sept. 6th, with interest, $1,900.00. Note of F. Wilton, Kingston, at 2 mos. from Oct. 19th, with interest, $3,489.00. Note of B. Longly, Ottawa, at 3 mos. from Nov. 15th, with interest, $856.30. Total $7,975.30. Interest accrued on Kbove notes, $79.58. Personal Accounts:— Q,. Gardiner, Brockville, Mdse. bought on reg- ular, Nov. 3, $2,873.70. S. Jones, Perth, Mdse. bought Nov. 5, regular, $2,307.70, net, $434.86. Cooper & Haight, Picton, Mdse. bought Nov. 19, regular, $469.00 net, $2,235.90. W. Green, Welling- ton, Mdse. bought Nov. 21, regular, $2,286.50 ; net, $146.22. Warner & Stone, Belleville, Mdse. bought Nov. 7, net, $43280. H. Brennan, Ottawa, Mdse. bought Nov. 10, regular, $368.60 ; ne. $390.20. Lee Bros., Oxford, Mdse. bought Nov. 3 regular, $2,846.00. Geo. Lapum, Fairport, Mdse. bought Nov. 16, regular, $166.36; net, $82.24. D. 118 Pierson, Toronto, Mdse. bought Nov. 23, regular, $236.90; net, $122.34. H. Fraser, Picton, Mdse. bought Nov. 25 ; net, $2,246.36. Total Resources, $141,396.52. JTofc:— Keep the sum of the "Reg" aud the sum of the "Net " items apart both in the Journal and Ledger. Sold Cooper & Haight, Picton, 2 No. 33 Walnut Beds, $21.00 ; 2 No. 33 Wal't Wood Top Dressers, $34.00 ; 2 No. 2 Walnut Towel Racks, $3.30, regular; 4 No. 80 chairs, $1.84; 24 No. 49^ chairs, $30.00 ; 24 No. 57 chairs, $18.00, net. H. Brennan, Ottawa, 12 No. 36 Maple Chairs, $21.60, net. Geo. Lapum, Fairport, 6 Best Side-board Beds, $12.60; 6 High H. D. Cots, $15.30 ; 6 Low do., $14.40 ; 2 Imp. Cong. Chairs, $5.70 ; 48 No. 72 Light Chairs, $22.00 ; 24 No. 7a Dark Chairs, $ii.oo ; 8 No. 61 chairs, $3.84, net. Cash Sales: — R. Kerr, 2 C. Suites, $72.00. J. Kemp, 2 Pat. Rocker, $44.00. D. Rogers, 2 Parlor Suites, $288.00. a» Sold D. Pierson, Toronto, 12 No. 25 chairs, $14.40 ; 24 No. 72 chairs, sing, round, light, $10.50 ; 12 No. 57 ch., $9.00, net. Lee Bros. Oxford, 2 No. 33 Wal't Wood Top Suit, $69.50 ; 2 Tete in Jute, $44.00; 2 Ford Rocker, $22.00, regular; 2 Arm Chair, $10., net. H.Fraser, Picton, 4 No. 4 Soft Wood Beds, $13,00; 4 No. 25^ ch, $16.00 ; 4 No. 24 Ash and Walnut Beds, $18.00 ; 36 No. 57 chairs in white (unfinished) $54.00 ; 6 No. 33 Ash and Walnut Beds, $36.00 ; 8 No. 309 ch., $8.00, net. Received check from C. Gardiner, Brockville, for the amount of his bill of Nov. 3, $2,873.70, less the regular discount, 5 per cent. Bought, for cash, 7,000 ft. Wal't Lumber at $70.00 per M. Ca:h Sales : — A. Comstock, 2 Pat. Rocker, $44.00 ; 2 Walnut Hat Rack, $56.00; Bunch of Cane, $1.60. Sold C. Gardiner, Brockville, 4 No. 42 Ash Beds, $36.00 ; 4 No. 4a Ash Dressers, $62.00; 2 No. 42 Ash W. Stands, $11 '^^, regular; and 4 No. 83 Ch., $6.16, net. Sold W. Green, Wellington, 12 No. 6 Maple Ch., in the white, $21.60; 8 No 38 do., $9.60, net. T t 119 Sold Warner & Stone, Belleville, 12 Lounges, white, $15.00; 4 14 X 34 Glasses, $10.00, regular ; 48 No. 57 Ch., $2'?. 00, net. Cooper & Haight, Picton, repairing Bed and Bureau, $16.00 ; 2 Hair Soft Mattress, $9.00, regular. Cash Sales: — H. LeBrun, 2 Ash Dining Table, and 12 No. 33 Ch., $52.00 ; 2 Wal't VVashstand, $8.00. Sold H. Brennan, Ottawa, 48 No. 87 Ch., $26.00; 72 No. 89 Ch., Dark, $39.00 ; 24 No. 89, Light, $36.00, net. Sold Geo. Lapum, Fairport, 8 Lounges, White, $ro.oo; 2 No. 42 Ash and Walnut Suite, $42.50, regular ; 4 No. 42 Ch., Light, $9.36, net. R. Burns paid his note of $1,730.00, and interest at 6 per cent, due, to-day. S. Jones pays his bill of Nov. 5th, $2,742.56, less discount 5 per cent on the regular portion of it. Cash Sales.— 2 Cong. Office chair, $36.00; 2 Office Desk, $90. Sold C. Gardiner, Brockville, 4 No. 48 Oak Ch., $5.20 ; 48 No. No. 89 Ch., $26.00; 2 Walnut Cor. Stand, $7.50, net. Sold Warner & Stone, Belleville, 2 No. 33 Wal't Wood Top Suit, $72.00; 12 Com. S. B. Beds, $24.00, regular; 4 No. 33 Wal't W. T Dressers, $68.00, net. Sold W. Green, Wellington, 2 No. 33 Wal't W. T. Suit, $72,00 ; 2 No. 33 Wal't W. T. Washstand, $15.00, regular ; 48 No. 87 Ch., $26., net. Cash Sales:— E. J. Clegg, 2 W. T. Suit, $72.00; 2 Ash Dining Table, $3600. Bought Damask, Jute, &c., of A. Ashton & Co., by check, $236.88; Invoice filed. Deposited $5,000. 6, Sold Lee Bros , Oxford, 4 No. 33 Wal't W. T. Suits, $139.00, regu- lar; 12 No. 59 Ch., $24.00, net. H. Fraser, Picton, 2 No. 2 Couch in Carpet, $18.00; 12 Lounges, white, $25.80, regular ; 24 No. D. R. Ch., white, $8.70, net. D. Pierson, Toronto, 4 No. 42 Ash Beds, $36.00; 4 No. 42 Ash 'i« 120 Dressers, $6».oo; a No. 42 W. Stand, $11.00, reg.; 12 No. 83 Chairs, $t8.oo, net. Cash Sales :— Parlor Suit, Waln't $144.00. Chamber Suit Walnut, $110.00. Warner & Stone pay their net bill of Nov. 7 by check, $432-80. The Foreman in the Cabinet Shop has handed in the time of, and amt. due to, the following hands; J.Dunlap, $21.00 ; C.Young, $23.50; L. Gillespie, $25.60; W. Hamilton, $13.00; S. Morton, $33.80; W. Case, $10.00; S. Toby, $16.60; J. Z. Rogers, $29.00; J. J. Long, $29.00; H. Stenson, $24.50; J. F. Jackson, foreman, $50.00. From the Warehouse are added C. C, Currie, book-keeper, $60.00 ; Wm. Moxon, ass't book-keeper, $16.00 ; L. K. Davis, salesman, $36.00 ; F. May, 40,00. NoU ;- -Credit the hands with their earnings in theiOredit Column of the Hands Register weekly. Charge them with what they get when you pay them anything, by entering it iu the debit column of H. R. Balances are carried forward weekly. Tou do not pay them anything this week. 8, Sold Geo. Lapum, Fairport, 4 No. 33 Wal't W. T. Dressers, $68 ; 4 No. 33 Wal't W. T. W. Stands, $30.00, regular. Cooper & Haight, Picton, 2 No. 35 >^ Ash Suit, $49.10 ; 2 No 50 Shelf Side Stand, $7.50, reg; 8 No. 44 Ch., $7.34; 4 No. 27 Ch., $3.40 ; 24 No. 87 Ch., $13.00, net. H. Brennan, Ottawa, 4 No. 33 Wal't W. T. Suits, $100.00, reg.; 20 Spindle H'd and F't Beds, $48.00, net. Sent check on Ontario Bank to Stethem & Co., Peterborough, for bill of Hardware, $636.90. Cash Sales :— 2 Wal't M. T. Chamber Suits, $236.00; 2 Walnut Parlor Suits in Rep., $170.00. Bought a new Planer, by check, $1,650.00. 9» Sold S. Jones. Perth, 2 Book Cases, in white, $36.00, reg.; 72 No. 48 Oak Ch., $108.00, net. Warner & Stone, Belleville, 48 No. 87 Ch., $26.00 ; 48 No. 89 Ch., $28.00 ; 24 No. 89 Ch. $13.50, net. W. Green, Wellington, 2 No. 42 Ash and Wal't Suite, white, $42.50, reg; 4 No. 80 Ch., $2.16 ; 24 No. 98 Ch., $64.00, net. Cash Salts:— 12 Dining Ch., $18.00; 2 Book Cases, Wal't, $90. Gave check for 13,700 ft. Cherry Lumber, @ $48.00 per M. 4 121 4 Deposited $3,000.00. J. K. Pierce pays his note of $1,900.00, with interest, in cash. 10, Sold Lee Bros., Oxford, 12 Lounges, white, $15.00; 4 No. i Couches in Carpet, $35.00, reg : 12 No. 25 Ch., $14.40 ; 24 No. 57 Ch., $18.00, net. C. Gardiner, Brockville, 4 No. 42 Ash Beds, $36.00 ; 4 No. 42 Ash Dressers, $62.00, regular ; 8 No. 309 Ch., $80.00, net. D. Pierson, Toronto. 6 14 x 24 Glasses, $16.50; 4 No. 33 Wal't W. T. Suites, $150.00; bunch Cane, $1.60, reg; 2 No. 309 Ch., $20. net. Cash Sales : — 2 Tete in Jute, $32.00 ; 2 Ford Rocker, $16.00 ; 2 Arm Chair, $12.00. H. Brennan pays his reg. bill, $368.60, and his net bill of $390.20, of Nov. loth, less discount 5 per cent on the reg. bill. Sold Cooper & Haight, Picton, 12 Ash and Wal't Beds, $72.00, reg; 36 No. 57 C, in white, $31.00; 48 No. 25^ Ch., $60.00, net. Geo. Lapum, Fairport, 24 No. 4 W.T. Cent, Tables, $84.00, reg; 48 No. 59 Ch., $29.00, net. H. Brennan, Ottawa, 4 No. i Book Cases, in white, $74-00 J 4 No. 33 Ash and Wal't Suits, $137.00; 4 No. 98 Ch., $n.oo, net. Cash Sales :— 2 W. T. Wash Stands, $9.00 ; 2 M. T. Suits, $112 ; 2 Office Desk, $68.00 ; 2 Office Chair, $30.00. Deposited, $2,000. 12. Sold S. Jones, Perth, 6 No. 42 Ash and Wal't Suits, $126.00 ; i6 S. W. Beds, $48.00, »-eg.; 8 No. 43 Light Ch., $9.00 ; 4 No. 25 dark Ch., $9.60, net. W. Green, Wellington. 4 No. 33 Wal't Beds, $42. ; 4 No. 33 W.T. Dressers, $68.00, reg.; 48 No. 72 Ch.; light, $22.00; 24 No. 72 Ch., dark, $11.00, net. Cash Sales-.— 2 M.. T. Wal't Side Boards, $96.00; 2 Wal't D. Table, $48.00; 18 D. Ch., $27.00. i3> Sold H. Brennan, Ottawa, 4 M. T. Wal't Sideboards, $116.00 ; 4 Wal't D. Tables, $76.00, reg ; 36 No. 36 Ch., $48.00, net. \\ M 122 H. Fraser, Picton, 4 No. 33 Ash and Wal't Suites, $128.00; 4 No. 4 S. W. Beds, $16.00 ; 16 Com. Washstands, $24.00, reg; 24 No. 80 Ch., $24.00, net. D. Pierson, Toronto, 4 No. 35 Ash Suites, $102.00; 4 Wal't D. Tables, $56.00, reg ; 48 No. 44 Ch., $56.00, net. Sales for Cash : — 2 Couches in Carpet, $36.00 ; 2 Pat. Rocker, $44.00; 6 Office Stools, $7.20. Lee Bros, pay their R. bill of Nov. 3, less discount, in cash Deposit in Ontario Bank, $3,000.00. Jackson, foreman, has left his time book in the office, from which the pay roll will be made up. The hands have earned, during'the week, as follows : — Dunlap, $23.50 ; Young, $23.00 ; Gillespie, $28.40 ; Hamilton, $17.50; Morton, $31.00; Case, $13,50; Toby, $19.60; Rogers, $26.40 ; Long, $32.50 Stenson, $25.00; Jackson, foreman, $50.00. Added from the office and warehouse, Currie, book-keeper, $60.00 ; Moxon, assistant book-keeper, $16.00; Davis, salesman, $36 ; May, salesman, $40.00. Entered on Hands Register, and paid in full, in cash. Enter Cash also in C. B. " By Wages " total sum paid'. Inventories \ Real Estate (Factory) $30,000. Warehouse $40,000. Mdse $23,729.80. Machinery & Tools $11,650. Office Fixtures $700. Bal. Invty. (Interest) $25.13. Cash balance, $1,085.20 Accounts used in Ledger, with number of lines required for each, as follows : — J.Campbell & Co., 3; Real Estate, 2; Cash, 2; Mdse., 10; Machinery & Tools, 3 ; Fixtures, 2 ; Bills Rec, 4 ; Interest, 4 ; Dis- count, 5 ; C. Gardner, 6 ; S. S. Jones, 5 ; Warner & Stone, 7 ; H. Brennan, 8; Ontario Bank, 7; Lee Bros., 5 ; Cooper k Haight, 7 ; W. Green, 9 ; D. Pierson, 9 ; H. Fraser, 8 ; G. Lapum, 9 ; Salary, 3 ; Loss and Gain, 6 ; Balance, 21. =^r. REMARKS — ON — WHOLESALE GROCERY, SET 5. BUSINESS PROSPEROUS — THREE PARTNERS. The Invoice Book is used for pasting in the Bill? of all purchases of Mdse. The total amount of the Invoices is posted at the end of each month to the Debit of Mdse. ; and the persons from whom you bought should be credited daily. When the purchase is for cash mark it C. B. and post from the C. B. The Sales Book is kept for entering all sales of Mdse., name of purchaser, amount, date, and mode of settlement. The total sales are posted at the end of each month to the credit of Mdse., and the pur- chaser should be debited daily, for the amount of his purchase. For the manner of making entries in this book see Manufacturing set 4. The S. B. here, however, need not have extra columns provided for reg. and net as the sales are made for various considerations, and may all be put in the same column. Gains and losses for convenience may be divided in the following proportions. Student 7 ; Duncumb 6. Laing 7^. This will give results nearly accurate. Books used are Journal, Sales Book, Invoice Book, Cash Book, Bill Book and Ledger. Trade discount should be closed into Mdse. account so as to get the true loss or gain on Mdse. INVOICE BOOK. Ottawa, Wednesday, November 1st, 1889. Nov. I To Bills Pay at 4 mos. per B.B. Invoice No. i 605 88 II II II Cash Kinlock & Lindsay. Inv. No. 2 658 38 II II II Bills Pay Dominion Tea Co. Inv. No. 3 643 40 II 2 11 Bills Pay Kinlock &; Lindsay. Inv. No. 4 Total to debit of Mdse (R.I.). . . . 757 80 2665 46 Note,— In actual businesa the above entries would represent the condensed statements on the invoices themselves. The invoices being folded up and pasted at ihe top to the book. There should be money columns ruled to the right, on the book itself. It is not necessary to mention the items because the Invoices contain full particulars. The student should continue I. B. as here commenced. 124 SET V,— WHOLESALE. Ottawa, Ont., ist November, 1889. Student having previously conducted a Retail Grocery business, at a loss, determines to open a wholesale house for the purpose of making money, so he, C. Duncumb, and Walter Laing, have ibrmed a copartnership for the purpose of conducting a Wholesale Grocery Busi- ness, under the firm name of Student, Duncumb & Co. Its gains and losses to be divided accordmg to investment. Student invests cash m Bank of Ottawa, $7,000 — (C. B.) being the cash value of his resources resulting from Retail Set. plus $4,426.66. C. Duncumb invests $6,000 cash which is deposited in Bank of Toronto. (J.) Walter Laing invests as follows : — Cash per C. B., $2,590. Mdse per Statement, $4,500. James Stevenson's Note, Peterborough, Ont., at 3 mos. from August 15th, 1889. with interest at 7 per cent for $1,500. J. H. Secord owes him $350. Total $8,961.88 (C. B.-J. and B. B) Note .'—The interest on Stevenson's note must be reckoned and an account called "Interest Receivable," opened. This ''interest receivable" has accumulated but is not due; it goes to swell the investment and is placed amjng the resources. Calculate interest from August 16th to November Ist on $1,500 ® 7 per cent per annum. Walter Laing owes as follows : — Note, favor of Arkell & Hutchin- son, at 3 mos., from September ist last, interest at 7 per cent, for $1,600. (J. and B. B.) Total $1,618.67. Rented of J. P. Martyn, Store No. 15 Sparks Street, at an annual rental of $1200, to be paid monthly. (J. "Memo".) Paid J. J. Blackmore & Co. for two office chairs @ $3.50 each ; 4 W. Chairs at $2.10; i Desk $20; j4 doz. Cane Chairs @ $12.00. (C. B. Debit "Fixtures" $41.40). Paid James Ponsford for Office and Store Fixtures $280. (C. B. Debit "Fixtures"), . , Engaged Joseph Potts, as Book-keeper, @ $690 per annum, Wil- liam Garland, W. H. Mountain and C. Bryson as Clerks, at $12.00 per week salary; and Fred Baldwin as Carrier,at $4.00 per week. (J."memo"). ■ t 125 Bought of Redpath Sugar Refining Co., Montreal, on my accept- ance at 4 mos., 25 bbls. R. Sugar @ 9c., 10 bbls. of 280 lbs., tare 210 lbs; 15 bbls. of 291 lbs. each, tare 223 lbs. (I. B.) Received of J. H. Secord, check in full of ac. (C. B.) $350. Bot. of Kinloch, Lindsay & Co., Montreal, for cash, 25 caddies '•Myrtle Navy," 16^ lbs. each @ 35c.; lo caddies " El Padre," 20 lbs. each @ 32c.; 15 boxes " Western Leaf," 1,500 lbs. @ 30c. Paid freight in cash, $7.75. (C. B.) Discounted at Bank of Ottawa, J as. Stevenson's note, dated August 15th last. Interest $26.25; D-scount 17 days, $5.05. Pro- ceeds placed to oui credit. (C. B. & in B. B. write in " Remark Column " the words "Discounted Nov. ist at B. of O. Note :— Calculate the interest on this note to date of maturity ; add to principal, and And the discount on the sum for 17 days at 7 per cent per annum. Put your work down neatly on a slip of pa^ "r and place on file on teachers desk. Do this now. Bot. of Dominion Tea Co., Toronto, Ont., on our acceptance at 4 mos., 10 chests C. Tea @ 50c., 75-11 lbs. each ; 12 chests Y. H. Tea @ 55c., 62-13 lbs. each. (L B. and B. B). a. Sold Arkell & Hutchinson, for note at 3 mos., 5 chests Tea C @ 55c. 74-10, 72-11, 72-11, 79-14, 79-14; 14 bbls. Ref. Sugar @ 9^ c, 280- 19, 281-21, 285-17, 279-8, 28817, 287-16, 286-22, 283-23, 295-27, 287-15, 283-20, 275-15, 276-14, 267-9 J 5 caddies i6y^ lbs. each, " Myrtle Navy" @ 45c. Bot. of Kinloch, Lindsay & Co., for note at 4 mos., 12 sacks H. Coffee @ 31c., 132-9, 130-8, 135-10, 141-12,145-12,142-10, 143-Jo ; 134-8, 147-13, 146-13, 148-13, 136-11 ; 10 bbls. Granulated Sugar @ lo^c, 281-21, 283-21, 284-29, 293-24, 290-23, 285-20, 286-19, 283-25, 290-22, 291-21. 3- Bot. of H. Harmor & Sons, London, Ont., on a/rat 4 mos., 25 boxes V. Raisins, 281bs.,each @ 9^c; 8 sacks of Rice @ 3^c., 192-3, 164 3. 173-3. 156-3, 163-3, 143 3, 153-3. 165-3. Paid freight on same in cash $5. 75. 4. Sold James Best for his note at 3 months, 4 sacks Rice @ 4^c., boxes V. Raisins 20 lbs. ea 192-3. 164-3, 173-3. 156-3 @ 5 bbls. Ref. Sugar @ 9^c., 280-19, 281-21, 285-17, 279-8, 288-17. 126 IS 6. Sold Bannell Sawyer for cash, 3 sacks Sago, @ 5c., 134-3, 131-3, 136-3 ; 4 sacks R. Coffee @ 45c., 132-9, 130-8, 135-10, 141-12 ; 5 boxes P. Starch ® yi^c, 37, 38, 35, 40, 41. ?• Sold James Munn, city, for cash, 2 bbls. Syrup 40 gals, each @ 80C.; 5 bbls. Gran. Sugar® ii^c, 281-21, 283-21, 284-29, 293-24, 290-23 ; 10 lbs. Soda @ 6c.; 50 lbs. Currants @ 8^c. 8. Bought of Redpath Sugar Refining Co., Montreal, for note at 4 months, 25 bbls. Ref Sugar @ 9^c., 270-20, 273-21 275-21, 280-24, 273-19, 285-22, 286-23, 284-22, 282-21, 284-23, 286-22, 287-23, 288-23, 289 24, 287-25, 281-19, 283-23, 297-25, 277-19, 273-20, 275-20, 268-19, 269-19 288-24, 280-10. Paid Fred Baldwin a week's salary. My private appropriations this week, cash $10, Groceries $15, C. Duncumb, $25 cash. Sold Jas. Moore, on ac, 5 bols. Granulated Sugar @ 12c. 291-21, 290-22, 283-25, 286 19, 285-20; 5 kegs D. Prunes 75lbs. each® lo^c; I bbl. Ex. Icing Sugar, 193-21 @ 13c.; i chest C. Tea 81-12, ® 57c.; i cask E. M. Vinegar 100 gals. ® 55c. 10. Bot. of Kinloch, Lindsay & Co., Montreal, at 30 days, 50 boxes Corn Starch 60 lbs. each @ 7^c.; 50 boxes Dried Herrings @ 23c.; 5 chests Gunpowder Tea ® $5.00 a chest, 10 boxes Cooks' Friend, 6 doz. eai,h @ $2.35 per doz.; 40 boxes Ball Blue 25 lbs. each box ® i2j^c. per pound. II. Sold Arkell & Hutchinson on 2 mos., 5 bags Java Coffee @ 35c., 506 lbs. net; 5 lbs. Cloves ® 45c.; 5 lbs. Nutmegs® 50c.; 5 boxes Corn Starch 200 lbs. ® 12c.; 2 cases Ginger at $8.50; 2 boxes Red Herring at 25c.; 2 boxes Cooks' Friend, 4 doz. each, at $2.25 ; 20 gals. Erg. M. Vinegar at 45c. 12. James Best, being unable to pay acceptance in full at maturity, asks us to accept his check for $82 . 38 and a sight draft on H. Harmor & Sons, London, Ont., for balance, agreed. / i 127 i >3- Draw on VV. Evans at 60 days sight to balance ac. with Kinloch, Lindsay & Co. 14. Remitted H . Harmor & Sons, sight draft on Bank of Montreal to balance ac. Exchange yi %. Discount off bill 5 per cent. Notf.—kAA 26c. for collection. 15- Received of Jas. Moore to apply on ac. $50.00. 16. Bot . of Kinloch, Lindsay & Co, on 30 days, 80 cases Vinegar at $10.50. Paid freight in cash $6.75. 17. Bot. of P. Innes & Co., Toronto, on note at 4 mos., 20 chests J. Tea at 65c., 81-12 each ; 20 chests Y. H. Tea at 35c., 110-22 each ; freight on same $15.24. 18. Sold Bannell Sawyer on account, 10 chests O. Tea at 50c., 64-12, 62-14, 6013, 58-12 57-10, 63-12, 64-12, 60-12, 61-14, 63-14; 10 boxes Starch 35 each at (>% ', 10 caddies M. N. Tobacco, 22, 21, 19, 20, i8J/^, 16, 19, 17, 22, 23, at 60c. 20. Received Cash of Bannell Sawyer in full of ac. 23- Remitted check on Bank of Ottawa to Kinlock, Lindsay & Co., to balance account. Discount allowed 3 p.c. 24. ^'old James Moore on note at 2 mos., 3 bbls. Refined Sugar, 290- 22, 291-23, 293-22, at 9}ic.', 3 chests J. Tea, 61-13, 60-12, 58-12, at 57c.; 2 boxes Corn Starch, 40 lbs., at 15c. 25' W. Evans has accepted draft. Date of acceptance, Nov. 24th. Note :— No entry needed. It waa anticipated in first entry tliat he would "accept." 27. Sold Arkell & Hutchinson on ac, 20 boxes M. N. Tobacco, 19 lbs. each, at 70c. Sold James Best for note at 3 mos., Mdse. per Invoice $750.36. 9 n 128 30- Paid messenger a week's salary. Drew on Arkell & Hutchinson at sight to balance ac. Had same discounted at Bank of Ottawa. Discount 7 per cent, per annum . Pro- ceeds to our credit $55. Discounted all notes in our possession. Paid expenses for the month ?s follows: — Rent, $100; book- keeper, $57.50; 3 clerks each $48; stationery, &c., $3.70. Take off Balance Sheet, close Ledger and leave it ready to go on with next month's business, after which take off Trial Balance. Inventories: — Fixtures, $200. Mdse $7,968.33. Footings of Trial Balance, $32,702.92. Accounts used lu Ledger with number of lines required. C. Duncumb, 5 ; Student, 6 ; W. Laing, 6 ; J. H. Secord, 4 ; Kinlock, Lindsay & Co., 6 ; Interest and Discount 10 ; Bills Rec, 5 ; Mdse., 10 ; B. Pay., 4 ; Trade Discount, 6; Salary, 7; J. Moore, 5; Arkell & Hutchinson, 6 ; W. Evans, 4 ; Bannell Sawyer, 4 ; Bank of Ottawa, 5 ; Fixtures, 5 ; Expense, 7 ; Cash, 3 ; Exchange, 3 ; Loss and Gain, 12 ; Balance, 10. REMARKS — ON — ADMINISTRATORS' SET, 6. Books used: — Jouinal- Day-Book and Ledger. The administrator is first to make a careful inventory of the Estate to be liquidated. His first work is to collect outstanding accounts and settle claims against the estate . The Canadian Statutes provide for his fee, or remuneration, allowing from i to 5 per cent, on the net value of estate. In cases where an estate is insolvent a fair allowance ir> generally made; and in the case of arl estate of very considerable proportions, a fair lump sum is often allowed. An executor is a person appointed by the will to settle the affairs of the estate. His duties are similar to that of an administrator. An administrator's position is a very responsible one, and should not be entered upon without deliberation; bonds to the value of the estate are generally exacted of administrators, who are responsible to the full value of the estate for all that they do. 129 Open no Cash account; the cash received is invariably deposited in Merchants Bank, and checks are issued for all payments on the Bank. ADMINISTRATORS' SET. Peterboro', Jan'y 20, 1889. I. —Student has been appointed Administrator of the Will of ihe late Richard King. The Will provides that the widow of the deceased, Ellen King, shall receive one-half of all the Estate, and that the four children, Thomas, Emma, John, and Norman, shall each receive }{, of the remainder of said Estate. The following is a schedule of the real and personal property per- taining to the Estate : Farm property, $10,000; homestead, $3,000 ; machinery for farm work, $1,000; live stock, $2,500; village house and lot, $500, willed to Thomas ; Ontario Bank Stock, $10,000; deposit in Ontario Bank $500.00; and Merchants' Bank, $1,200.00; judgment against K. Mc- Curdy, dated Jan. 2nd, 1888, $470.00 ; interest to date, 18 days @ 6% ; 12 Central Canada L. & S. Go's 6 pei cent bonds, $500 each at par ; interest accrued on same from October 20, 3 months ; Wm. Ar- gue'snote at 6 months, dated August ist, 1888, $375,00 ; interest ac- crued on same to date at 7 per cent ; James Langford's note at 2 mos. daied Dec. 15th, 1888, @ 12 per cent, $67.00 ; deposit in C. C. L. & S. Co., $750.00 ; interest accrued on same, from Jan. ist, @ 5 per cent per annum. (J.) 2. — You wish to know to what extent the Estate is indebted and you publish for at least one calendar month the following notice in the County papers : Note :— The Student will count the words in the following advertisement— each flguro tod initial letter when standing; alone counts a word, each word in the heading; counts two words. There are usually 8 words to a line; and the charge will be the usual rate of Si; \mr )ine for the iirst and 2c per line for each subsetiuent insertion. To find the cost count 88 lints for 26 days at 8c. a line tor first insertion, and 2c. a line for 26 insertions, then multiply by 2 as it is in two papers, NOTICE TO CREDITORS OF THE LATE RICHARD KING, Late of the Township of Douro, County ot Peterborough, Farmer, deceased. Pursuant to Section 34 of Chapter 107, of the Revised Statutes of Ontario, as amended by 46 Victoria, Chapter 9, Section i, notice is hereby given, that the Creditors of the said late Richard King,' who 130 I ' died on or about the 2Sth day of November, 1888, and any other per- sons having any claim against his Estate, are, on or before the 19th day of Jan'y, A. D., 1889, to send by post, prepaid, to Siudenty of the Town of Peterborough, in the County of Peterborough, Esquire, the Adminis- trator of the Estate of the said deceased, their Christian and surnames, addresses and description, the full particulars of their claims, a state- ment of their accounts, and the nature of the securities (if any) held by them. And take notice that after the said 19th day of January next, the assets of the said deceased will be distributed among the parties entitled thereto, having regard onlv to the claims of which notice shall then have been received, and the said Administrator will not be liable for the assets so disposed of, or any part thereof, to persons whose claims shall not have been received by him by the said date. STUDENT, Administrator of the Estate of the late Richard King. Dated Peterborough, Ont., Dec nth, 1889. 22. — In answer to your advertisement and efforts, you have ascer- tained that the deceased was indebted to the following persons for the sums named : — James Fenton, for hay and straw, $75.00 : Robert Falls, for black- smithing, $37.50 ; Atkinson & Co., store account, $123.75; D.John- ston, for carpentering, $13 25 j John Drelin, labor, $7.85. 23. — Sold to-day by private sale : — 50 sheep @ $3. 25 per head, to John Fenton on his note at 3 months, with interest payable at Mer- chant's Bank ; one span carriage horses, (95 + 120) $215 00, to John McBride, on his note at 3 months, endorsed by Wm, McBride ; one yearling filly, $75. 00, to Wm. Argue, for note at 2 months, with interest, endorsed by Thomas Argue ; to John Hodgins, 7 head cattle, $23.25, $32.00, $45.00, $38.00, $37.00, $28.50, $27.00, note @ 3 months, with interest \ poultry to James Allen for cash, $25.75 ; one set cart harness, $12.00, one set carriage harness, $50.00, and one lot of odd pieces, $13.50, to James Watt for his endorsed note @ 3 months, with interest. 24. — Paid Robert Falls, Atkinson & Co., D. Johnston, and John Drelin in full of account per check on Merchants' Bank. 25. — John Fenton pays his note to-day, deducting contra account. Interest to date. 27. — Sold by public auction, for cash, farm sundries, amounting to $750.00. Paid auctioneer $10.00 and 2 per cent of sales for his ser- vices. 181 38. — Disposed of the bonds to Mrs. Jas. Fenton, for cash, at par, i»ith accrued interest. Deposit in Merchants' Bank. 29. — Rec'd payment in full foi insurance on the life of the late R. Ki'^g* $5,000.00. Policy was made in favor of wife. NoTi.— No entry. Thl» docs not belong to Entate. She Ir not heir to It by Will. It li hor own penonal property, having been made in lier favor. 30. — Discount the following notes at Merchants' Bank at 7 per cent: — John McBride, Wm. Argue, John Hodgins, Jas. Watt. (Dis- counted lor the whole length o( tinre for which notes were drawn.) 31. — Thomas King asks leave to occupy his house, situated in village. (Granted.) Heir by Will. February 2. Draw out amount, with accrued interest, from Central C. L. & S . Co., and deposit in Merchants' Bank. 3. — Pay John and Norman King $50.00 each. 4. — Norman King wishes to purchase the homestead, cattle and machinery now remaining, agreed, at appraised value. 9. — Paid Lawyers' expenses and other costs in connection with suit against K. McCurdy, $37.50. 10. — Rec'd through Solicitors, payment for judgment against K. .McCurdy, a deed for Lot 26, N.E. corner George and London streets, appraised value, $350.00. Cash for balance. Note :—