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The I shall TINU whic Mapi diffai antin bagir right requi meth Additional comments:/ Commentairea supplAmentaires; Wrinkled pages may filmed slightly out of focus. This item is filmed at the reduction ratio checked below/ Ce document est film* au taux da reduction indiquA ci-dassous. 10X 14X 18X 22X 26X 30X y 12X 16X 20X 24X 28X 32X Tlw copy filmed h«r« hat b—n raproduead thanks to tha ganarotlty of: Douglas Library Quaar^'t Univaraity L'axamplaira fllm4 fut raproduit grlea A la g4n4roaitA da: Douglas Library Quaan's Univarsity Tha Imagaa appaaring hara ara tha baat quality posslbia eonsldaring tha condition and laglblllty of tha original copy and in kaaping with tha filming contract spaclflcationa. Original eopias in printad papar covara ara fllmad beginning with tha front covar and anding on tha laat paga with a printad or illustratad impraa- sion, or tha back covar whan approprlata. 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Un des symboles suivants apparaftro sur la derniire image de cheque microfiche, sslon le caa: le symbols — ► signifie "A 8UIVRE". le symbols V signlfis "FIN". Maps, plates, cherts, etc., mey be filmed at different reduction ratios. Those too lerge to be entirely included in one exposure are filmed beginning in the upper left hend corner, left to right and top to bottom, as many frames as required. The following diegrams illustrate the method: Lea cartes, plenches, tobieeux, etc., peuvent Atre fiimAs A des taux de reduction diffirents. Lorsque le document est trop grand pour Atre reproduit en un seui ciichi, 11 est filmi A partir de i'angie supirieur geuche, de gauche A droite, et de haut en baa, en prenent le nombre d'imeges nicesseire. Les diagrammes suivants llluatrent la mithoda. 1 2 3 ^ 9 5 6 J PU ELEMENTS or book-keeping: IN A SERIES OF SHORT EXAMPLES. FOR THE USE OP SCHOOLS. DUBLIN: PUBLISHED BY DIRECTION OF THE COMMISSIONERS OF NATIONAL EDUCATION, And re-printed, by express pei'mmion, AT MONTREAL, BY ARMOUR & RAMSAY. 1846. ■1 lP hf i-t^io .113 iS'iur T; * MONTREAL : TRIlfTID »Y ARMOUR AND »AM8AY. a M r^'-^- '\0 a k!" '^1 M T ^A ^i PREFACE. This elementary trentisc makes no pretensions to the invention of any new or improved system of Book-keep- ing. Its object is, to begin witii the simplest operations of the art, and gradually to prepare the pupil for those that are more complex. Tt does not pretend to teach ' (children at least) without a master, but merely to assist masters in teaching. As it is intended to be put into the hands of the pupil, it does not contain complete Journals or Legers, which might be copied by him, but merely examples, with directions for Journalising and Posting the Leger :— but a Key is prepared to accompany it, for the assistance of the teacher. The teacher is supposed to be able to direct the pupil in regard to the mere form in which the different books are to be kept, and which could not easily or perfectly be conveyed by description. This little work is not intended to supersede the use of more complex and elaborate systems, to those to whom they may be necessary j but rather to prepare the way for them. At the same time, it is hoped, that any pupil who is made thoroughly to undeis'and the examples here given, will have little difficult}^ in making himself master of the mode of recording the most varied and complex transactions. 3D^i^DO y >' ' ,i,:r,- I V I ELEMENTS or BOOK-KEEPING. jFlvHt Set. J, 1 CASH ACCOUNT. As keopinu an account of money received and i)aid, funiiishes the simi»lefit example of Book-keeping, we com- mence with a (.'nsli Account. Lei y\» suj)poMe a person engaged in money transactions, of receiving and i)aying, whicli are written down as they occur ; it iy obvious tliat, if he wish to know what money he ought to have on hand, he must pick out all the sums received, and add them together, and also all the sums paid ; and then, by Ru))tracting the one from the other, he will be ab. ' » toll what money he should have on hand (if any) ; anil afterwards, by comparing the sums thus ijidicated in his book, with what he actually has in his desk or elsewhere, he can tell whether he has kept his accounts correctly. Now, in order to be able to do this at any time, without the tlelay of separating the sums received from those paid, the method adopted in Book-keeping is, to. have a Cash Account, either in a book by itself, or in a book among other accounts. For this pur- pose, take the two opposite pages of a book, (which aOUH-Kbti'LNU. two pnnoN mken logothcr nro tlion rnllod a folio ;) rulo onch with nioiicycoluinii^ towards till! ri^lit liniui, nnil o column for iju' ilfito vi\ the left himd. Then write on the top of the lett-li!ii\d |>iiKe, in a text Imiid, Cash, Dk., ti'^d on the rij(iit-hnnd pni^e, CoNraA, Cit. ; the lurnier in then rulled the Dii. or tlehtor sitlc, the latter the Cii. or credit nide.* All sums on hiind or received, ore enteretl on the J)k. Mide ; and all sums paid, on the Cn. nide ; because, file woni Caihf at the top of the page, is put for the per- »on himself to whom the l)ooks belong, in so far as cash is concerned ; and, in T3ook« keeping, every one is considered Dr, for what he receives, and Cr. by what he gives out. DiRtCTtONS. The first thiiii{ that the pupil should do, is to copy out, ill a fair legible hand, the transactions stated from page 8 to 11, into a book ruled with money columns towards the right, and a column for the date towards the left j and wither with or without a head line. This book is called somelimos the Waste Book, because the entries in it have been regardeil as superseded and rendered no longer ne- ce;s.-i\'. 12 : 5, therefore, is the money on hand, and ought to correspond to the money actually in the possession of the person whose transactions are recorded. n nOOK-KCCriNii. WASTi: IU)OK. The iiafiHintiohr* III ilns hv\ aiv to U* riV'>i'l*'•■ (.iitcrcd ' on the Dr. Hidnot'tho CiihIi Aevuiitit, tvith the dale ' and uord», Tu Huluncc on hand, htforc it. 1- Puici John Cununing lor Books, ns ytev ! invoice - - • - , I Thin money is paiij, and thcrcfort mupt be entered on the Cr. i«iilc; By .lulin Cuininirig, for Hooks. I 1- £ I s.\ d', 80 7C' 3' 4. Sales* this* day Snicfl arc what I sell, nnd, therefore, the money 18 received, and goes to tlio Dr. oidc, To Sales. 17 21 9 I HouHO Expenses for last j)veek - - - ( House Expenses imply money going out, and, ; therefore, this sum goes to the Cr. side, By House . Expenses. iln 9 1 rmiT icT. Dublin, 2nd March, 1831. Received from Willinm Thorupjion, for an Lricyclopcilin) ttold him - . - - Paid HouNtnn ^ Co. for 100 copies Euclid'H EIcmeiitH -.---- Received for Sales i\\\H dny - - 3 Paid Houpc Rent, one half year ending 2jth DoccndHT Inst ------ Paid Taxes, Grand Jury Cesfl, for Michaelmas Term ------ Received for Sales this day - ■5- Paid Thos. Mason liis account for paint- ing HoubC -------- Paid John Cununing, for Books, as per invoice A 2 £ i. I 41 10 25 11 25 8 9' Received from John Huiiter, Kent of j i Stahlo, one half year, to 25th Decern- 1 ' iHjr i 9'lO' 13 9 8 9 0^ 10 BOOK-KEKPING. Dublin, m March, 1831. Paiii Tliomns White liis account for printing Catechism - 915 Received for Sales this day 5 Paid wages to Shopman, due 28th uit. Paid Patterson for Coals, 2 tons - 5 Paid Wm. Wilson his account for Book- binding --------- ■5 Beoeived for this Day's Sales 7 Remitted Waddell &. Co. on account of Books purchased ------ To remit is, to send money to a distance. This, therefore, is Cash going out, aud goes to the Cr. side of the Cash Account. 23 Received Lesracv from the Executors of ' the late Mrs. Alary Cainphell, deduct- ' ing duty and other expenses - - - i 93 17 10 19 35 17 14. 8 9 FIRST SET. 11 8 I T 4- Dublin.llh March, \SZ\, ReceivcJ from Samuel Lly, for Eooka furnished to Rosa library itied to Kosa i £ !«. 15 Paid Ilanncy bis account for repairs of Shop and Hou.^c - - - 13 Received from Hanney, for old Shop Fur nishings, including Glass-case - llicceivcd ibr Sales this day 11 The pupil should be made to do this exorcise upon a separate piece of paper, properly ruled, before he enter it in his book : and lie should not be permitted to leave it till he fully understand it. The teacher should also dictate to him other transactions, and require him to post tlicm, that he may acquire readiness in placing Casli going out, and Cash coming in to the proper sides of the Cash Account. QUESTIONS ON THE FIKST SET. What is meant by Cash 1 Wliy is ttiis bock begun with a Cash Accouut 1 If you wrote donn in a book, the money you re- ceived and the money you gave out, in the order in which the transactions occurred, what would you need to do that ycu might accertain wheUier your accounts here correct or not? "What i 12 BOoR-KUEPINO. plan i« adopted to uToid this tedious operation 1 In vhat kind of book would you require to keep your Cash Account 1 What is a folio, in the language of Book-keeping 1 What would you write on the top of the left-hand page of your folio 1 What on the right 1 Suppose you receive a sum of money, on which side would you place it 1 Why ? What does the word Ca$h stand for 1 What is the difference of Dr. and Cr. '{ What is the first thing.that the pupil ought to do t What is this book called 1 In what order do you enter your transactions in this book 1 After having written out the Waste Bock, what is to be done 1 What is to be carefully gbsorvcd 1 On what side do you enter Saleaf Hmiae Expenses ? When the sums are all entered, what is to be done ? When is the Balance entered To, and when By 1 Why, in the example given here, is the Balance added to the Creditor side ? What is meant by remitting money % t ' ith the other, writing before it, < By Stock for my netetitaie.' I then turn to the Stock Account and write on the Dr, side, * To Balance for my net estate ; and as ihia ib precisely equal to the Cash entered on the other side when I began, it fchows that I have neither lost nor gained, having precise- ly the same value of property. There i a one difference, however, in my aflair.s, namely, that, when I began, I liad j£50 : 10 : 9 in Cash, whereas I have, in closing, only J^49 : 15 : 11 j but the difference between what William Keid owes me, ;and what I owe James Thompi^on, makes up the deficiency of Cash, namely, j60 : 14:.. 10. In- stead, thereforcj of having £50 : 10 : 9. in Cash, I have in Ca&h, £4-9 : 15 : 1 1, together with £0 : H: 10 owing to me more than I owe, which amounts to the same sum. EXAMPLE OF THE BALANCE ACCOUNT. Salance, J.iny, Ij3j To CaiuhHn,May ^Ih, lft32. Suld for Cisli, to Charles Thomp^n, 1 I pi|K>, ati;82 82 I .526- Sold to Andorion niid Co. for Conh, 5 pi{)Cfl which hod surttaincd injury, at M\ ' June 16M 3'20, Bought of Willinm AdaniH, for Cash, 18 pit)C8, at i:65 - - . . jeino 5 do. „ 71 355 -18 Sold to ThomaH Brett, A)r Cash, 2 pipes, utje73 .-30 Sold to M. Sullivan & Co. for Cash, 10 pipes, at £79 - - - - ^£690 7 do „ 75 - - - - 525 1525 146 »> —July Xst- Took Stock, and found on hand, Cash jei8l7 1 Wine, 20 pipes, at £70 - 1400 13 do. £73 58. - 952 5 1215 4169 6 To arrange these u^nsactions in a Leger, so as to feflTect the purposes of Book-keeping with regard to 1 il THiKD iii:r. 3S them, three nccmintit mtiMi Im> opened, one for Stui k, • iCcond for CuMh, nriJ a ihinl tor Wiiu'. On the Cr. Nido oftho Stoek rtreouMtiM Ntnted the nmoiint ofCaiih, nnd the value of the Wine un hand ; nnd thi* nceount remuini in that state tilt the Qe(*ounl<« nro tr» Ite hnhineed ; thut in to my, till I vviith to know whether I iiave gained or lost hy tho transactions, and to what nmoiirii «'ithTitc an exercise upon these transactions on a loose slip of paper, the object of which would be to dis- tinguish in each transaction which oftho actounts is Dr. tnd which Cr. This v^iil prepare him for understanding the nature and uses ofa Jonrnal, a book of which nothinf; has yet been said. The exercise in to \ye in the following form, omittins, of course, the directions printed in small .type. ii to to Dublifif January )st, 1832. >8undriea Dr. to Stock. Cash Wine, 50 pipei £iy.' 5 3500 t. d. 3900 ' 5 34 BOOK-KEEPING. Dublin, February Ut, 1832. Cash Dr. to Wine j Sold to Williamson & Co. 6 pipes at £75 - The Casli camv in, ami Winn w«nt out, tiarcforc, Casli is Dr. •10- Cash Dr. to Wine. Sold to James Allen &, Co. 10 pipes, at £7b lOs. - - - - - Hore also Cnsh cnmo in, and Wine went out, so that Cash 14 Dr. 'March I2th- Wine Dr. to Cash. Bought of William Adams, 17 pipes, at £73 53. Here the Wine camo in, and Cash wont out, there- fore, Wino is Dr . 450: "0 755 1245 5 The last of the entries in the Waste Book, namely the taking of Stock, and fintling how much Cash and Wine remain on hand, is to be written in the exercise thus : — Balance Dr. To Cash To Wine jei8i7 1 2352 5 4.169 6 ...Jl.^_^, THIRD SET. 26 ■0 Unc DIkECTIONS. Having finished all the entries in this form, on a loose slip of paper, let the Pupil copy them, in the same form and order, into a book ruled like the Waste Book, and which is called the Jourr.v i. Having written the Journal, he then opens his tliree accounts in the Leger ; one, for Stock, a second for Cash, and a third for Wine. Instead of posting the Leger I'rom the Waste Book, as in the former Sets, let him now post from the Journal. In the first entry Sundries are Dr. to Stock. The word Sundries always means, in. Book- keeping, not sundry or several articles, but sundry or several accounts. Here it stands for the two accounts mentioned immediately afterwards. Cash and Wine. These accounts are Drs. Let him therefore turn to the Cash account, and enter the Cash on hand on the Dr. side, writing before it, * To Stock.' Also to the Wine account, and on the Dr. side write < To Stock,' prefixing the date, and adding the number of pipes in the proper column, and the amount in the money column. Let him then turn to the Stock account, Cr. side, and after writing the date as before, write ' By Sundries,' adding the whole sum ^£3,870. Let him then proceed to the other entries in the Journal, and wherever he finds one account njade Dr. to another, let him turn to the Dr. side of that account which is made Dr., and write * To ,' mentioning the other account ; and then le thim turn to the Cr. side of that other account, and write * By ,' mentioning ihe first account. Thus, when he finds such an entry as < Cash Dr. to Wine, X450,' he turns to the Dr, side B J S6 BOOK-KEEPINvi. of the Casli account, and after the date, writes ' To Wint^, £450 :' he then turn8 to the Wine account, and on the Cr. Hide he writes, after the date, < By Cash, jei<50,' also inserting in an inner column the quantity of Wine men- tioned in the entry. TiiC Wine account will appear as in the note helow,* and the Cash account as in the former Set, Having posted all the entries but the last, which states the account of Stock on hand, let the pupil make his trial Balance as in the f()rMicr Set. Th's being found correct, he must proceed to balance the accounts. He first balances the Cash account, as in Sets I. and II. The Wine account is difierently balanced. The balance of that account consists in the quantity of Wine remaining on hand. This he will find by balancing Uie inner columns, in which the quantity bought and sold i« stated. Add up the number of pipes on each side, and on a >late or separate bit of paper, subtract the one sum from the other ; ai d if there be a dilTerence, enter it at the bottom of the side on which is the smallest quantity, which must be the Cr. side ; for no more could bo sent out than came in, — and write before it, « By Balance on hand,' H'irie. Dr. l«S2j ' •'' ' \7"'\ £ * Jan.! J To^t^ck . . . Vi^.rm I — I'lolit&Losst' •iTM-i*"' ■'■ Contra , Cr. ■^y.t:> oi ! ;Jnn. 1 110 \m,' 15) Cash . . . c £ i*.rf. 4,'i(i 0. - do 10 7,-J,-".i 0( «• -do .">(> aT.')oi 0. — B*ilanrc , , 1 ro' "i 1 1 f I 1 f f The words ' Profit and T.oys,' v> liich are the tiUeti of an account, ^ill \iv. explained after, THIRD SET — DIRECTIONS. 27 o! 1 o' .. lunt, A value must then be alTixed lo the quantity on hand, which, in real hiisiness, is the Irue value of the article io •qucstio!!, without the addition of any profit. Compute, then, the vahie of the utiolc W^nc on hand, and enter the sum in the money column. Add up, then, the mofioyrohuiins on the Dr. and Cr. side, on a slate f^r loose Hip of paper, subtract the least from the greates't, and enter the diAerencc on the side that is least. This difl'erencO; Ivowover, is not the balance of the account ; i.-c. it is neither wliRt property I have in it, nor what T ovv-e upon it, but it is the sum that I lost ()r gained by the transactions recorded. On the Dr. side has fcoen entered the value of all that I had when l began, and of all that came in afterwards : on the Cr. side has been entered the value of all that went out, and of all that re- gains on hand. Th(Mlifterence, therefore, must be my loss or pain. I enter the difference then on the smallest side, prefiNiiii', not ' 'I'o or By Balance^'' ' To or By Profit and Loss.^ If the Dr. ^ide was the smaller side, I enter upon it, ' To Profit and Loss,* if the Cr. side, upon it, ' By Profit and Loss. This entry re(iuires the openinu of a new account, namely, Profit and Loss, the use of which is to keep an account of my onins or loss(»s ; and having entered on the Dr. side of the Wine account, ' I'o Profit and Loss tor my net gain,' I turn to the Cr. side of the Profit and Loss account, and enter ' by Wine for my net gain,' entering the amount in the money colunui. Add up now the two sides of the Wine account which will be found equal, and which closes that account. In order to close the Set, open an account for Balance, and enter upon it the Balances of the Cash and W^ino accounts. As tiie Balances are entered on the Cr. sides 28 BOOK-KEEPIKC. • 4- of these accounts, they must be entered on the Dr. side of the Balance account, < To Cash,' and * To Wine.' Then close the Profit and Loss account. This is done, as in the other cases, by adding up both sides separately, and subtracting the one from the other. But in thi<: set nothing is entered on the Dr. side ; we must, thurefore, enter the whole of what is on the Cr. side, on the Dr. side. As this is gain, or an addition to my original Stock, I enter it * To Stock for net gain.' I then turn to the Stock ac- count, and on the Cr. side, I write * By Profit and Loss,' entering the same sum. Proceed now to close the Balance account, by adding up both sides of it, subtracting the one from the other, and entering the diflerence upon the smallest side. This dif- ference would be all that I possess, after deducting from it all that I owe, and, therefore, is called my net estate. In this set I have no debts due to me or by me ; nothing, therefore, is on the Cr. side or this account : but I add up the Dr. side, and enter the whole on the Cr. side, writing * By Stock for my net estate ; I then turn to the Stock ac- count, and on the Dr. side enter, * To Balance for my net estate :' and if the two sides of the Stock account be now equal, the books have been kept correctly ; not otherwise. The reason of this is, that the Dr. side of the Stock ac- count now contains all that I possess, after deducting from it whatever I owe, and also whatever I may have lost. The Cr side contains all that I had when 1 commenced, with the adJilior. of uhatever I gained since. These *;tateniei»ts, therefore, are both of them statements of my actual property, and if correct must be alike. ■ '4- tHIRD SET-^QUlSTIOlfS. s» QUESTIONS ON THE THIRD SET. What are Reed accounU Y What two objects are effected by keep- ing real accounts 1 What are the transactions in this Set intended to show ? Whj is it not necessary to keep personal accounts in the following transactions *? After the Waste Book has been copied out, how many accounts must be opened in the Leger, and for what 1 What general rule is to be obscrfed 1 What book do you post from into the Leger Y How would you enter the number of pipes of wine 1 In posting from the Journal, what would you do when you find one account made Dr. to another Y What is the trial Balance Y What is to be done when the trial Balance is found to be correct Y What Talue do you give to Stock on hand Y On which side do you enter Profit and Loss Y How wonld you clof e the Set What is your Net estate. my w fiOOK-KKEPIIVG. • •- if oarth ^tt OASH ACCOUNT, VVITfl A GENERAL GOODS ACCOUNT. l.N tliojH^ trades in wiiicli goods are sold in snjall quantities, it M inj|)os8il)lc tokeop an account orovery article sold, so t\A to Ikj able to balance tlio diflerent kinds of goods, by the quantity received and given out, us appenriiig on an inner column of the account of them. The description of goods also, in which trades are conducted may be bo numerous, that to attempt to trace every article by entries in th(5 books, wouUl recpiirc an expense in clerkship far Uoyoiid what the profits would alTord ; and create a coni- ph:xity of books \% liich would ratlier bewilder the acc^mnta dian fulfil the proper objects of Book- keepings In such i:uses it is usual to keep a general account of goods, or to divide them under tlilTerent heads, and to enter only the value of goods received and given out, disregarding die Iciiiifs and quantities. The only variation that this occasions, is, that the balance of the goods on lumd must be obtained hy actual examination of the q^uantity of every kind in the shop or warehouse-, and by an estimation of the value of every article. Tiiis operation is called taking Stocky and must be performed as often as the trader wishes lo know the stal" 'fhisaflairs. In the following transactions nothing is botjght or »old on credit, but all are cash transactions. The accounts, therefore; that are necessary, arc merely a : FOURTH SET* 31 'the ^ Cabh account and a Goods account, with tliosc fictitious accounts, auch as Stock, Profit and Lo«s, and Balance, which arc necessary for balancing and closing the hooks. Write out the transactions in Set IV. of the Waste Book,' as directed in tiie former Sets. Proceed then to Journalize theni in the Journal. Th« first entry in tlic Day Book, which states what you havo on hand, enter in the Journal, thus — i Sundries Dr. to Stock. Cash - - UoodB - - £319 18 4 2017 17 4 2337 15 8 Or more simply— • Stock Cr. By Cash . By Goods £319 18 4 2017 17 4 2337 15 8 1 Then proceed to the other entries in their order, taking care to make what comes in always Dr. to what goes out in the following form — Dublin^ January \st, 1832. Dr. Goods. To Cash paid Waddell and Co, 1 07 19, 3 Dr. Goods. To Cash paid Thomas White, for printing 500 copies Murray's Grammar - - 45 7; Dr. Cash. To Goods. Amount of this day Sale - 27 6 88 BOOX-KCBriNd. WASTE BOOK. Dublin^ January )iif 1832. INVENTORY OF MT IFPEOTS. I iiave in ready money - j£319 13 4 Goods ... - 2017 17 4 £' t,\d. 2337 ■1 Paid Waddell & Co. for Goods - - - Here Qooda are Dr. to Cash, because Qoods came in, and Cash went out. 1- Paid Thomas White for printing 500 copies Murray's Grammar - - - - •I- Sale this day Here Cash came in, and Goods went out} there* fore, Cash b Dr. to Goods. Paid Jonn Gumming for Books, per invoice 2 Paid Wm. Wilson for Binding Q Sales this day -4,. 107 45 27 15 19 15 13 131 19 19 17 Received for 50 copies Murray's Gram- mar, at 38. -------- - 8 10 1 8 rOUATH lET. Dublint January 4M, 1832. Paid Curry and Co. their account, for Books -- --- ---- 4 Bought from McDonnell & Co. Printing Paper, per invoice, and paid Cash - - 4 Sold 25 copies Murray's Grammar, for cash, atSs. ------- - 4 __ Sales this day -- ------ — 5 Bemitted Wesley & Co. account of Bodes 5 I Received from Wm. M'Comhe, Belfast, for Goods sold him ..---- 5 Sales this day ---- ---- 6 Took Stock, and foimd Cash on hand jB383 14 11 Goods do. - - - - 1987 18 9 33 £, #77. 19 8 I I 2715 I 315 1715 45 8 87. 63,19 2371 13 B2 H BOOK-KKF.IMNG. ninECTIONS. Ifnving thus gone over all llir erUri»»!» in ihft Day Book, ami po.slcil llu'rn in llio JoiiinnI, Uiko your Lt'gor, nnd o\)on throe acrount.s -oMi! ol'SlotU, a «cconil of Cash, and a third ofGoods, as lorniPrly. Prococd now to pu.rt into tho Lcg(!r from tho JournaF, according to llu' tlirertion i^lven \i\ Sot III. Havinj» fuii^Ucil this opiTation, you arc? prepared to (jalanro iho h(K»ks ; t.hni i>(, to asooitaitj \vlu;tlicr yo»i have gained or lost hy tlie transactions. IKrforo balancing each account, luaUc a liial Halance, ns directod in Sot III. Having found llus corrci:t, turn now to the Cash ac- count, and hulanco it as in all tlio former Seta. The Goods a(U'(>unt is l)a!aMi'ed dillcrently. You must first insert on tli(» Cr. side of that account, the value of gooils on hnnj. In ival husiness, this, as lias been said is, a«o<;rtainod l>y what hi called taking Slock, in which oiKjration the p,MSt>n in hus^iness examines all the goods that he K: .5 on hand, and (!nt«.Ts them, valued at the price which they cost him, or rather the price that they would bring in the wholesale tnniktrt. The goods on hand con- etituted the balance of the Goods account, and are entered at the bottom of tliat account, on the Cr. Bide, ' By Balance for Goods on hand.' Add up now, as in the Wine Account of the Third S<;t, the two siJesi, and llie Cr. side being greater, put the ililVerence on the other side, writing before it, ' To Profit and Loss,'. Then open an account for Profit and Loss, and, on the Cr. side write, * By Goods,' adding the same sum in the money column. Wc arc now pivpared to close the books. For thia purpose, open as in Set IIL, an account for Balance, and enter it in thj Balance of the Cash and Gooda Ihis Ice, )d3 > tOURTl! SET— '^VEIBTI0N8. Account. The Balnncc oC t^'350 ncc<»^ant9 appearing on Uio Cr. Hitlo, you pul ihem on he Dr- %idc of iho Rnlnnc^ Account, writinn, « To Ca«?h,' and * To Good*,' n«l«ling the uums in which these accounUi arc cretUtrd hy Balance. The fifrtt account to be clowd is the Profit and Los*, u in Set III. You next close the Balance Account^ as aloo dircrtrd in Set III., carrying the diflerencc of the two widcs to tlie Stock Account, a« there directed. And if the Dr. and Cr. bide of the Stock Account be thua made equal, tha books have been correctly kc[)t. QUESTIONS ON THE FOURTH SET. When goods arc sold in small qunntitics, would you keep a scpar- at« account for each article sold 1 Ilonr would you manage 1 How then would you And the balance of goods on hand 1 What is this operation called 1 How oflcn must it be performed 1 Since, in tke following transactions, there is nothing bought or sold on credit, what are the only accounts necessary 1 What arc you to do after having written the Waste Book 1 When you have posted the Jour- nal, what next 1 What accounts would you open in your Iieger|[1 How would you balance the Goods Account 1 At what price wouM you value the goods on hand 1 When, upon adding up, you find a diflerencc in the two sides, what do you do with that diflerencc ? In what other account do you enter this 7 How do you close the books \ How do you know when they havu been correctly kept 1 BOOK-XKinffO. Jfltih Sktt. EXAMPLES OF PERSONAL ACCOUNTS IN AD- DITION TO REAL ACCOUNTS. VV'hun gooils aro boiij^ht or sold on credit, it boc^men iiecc8aary, na cxplainod under Set II., to keep an account of our dealingH with cvcrj' perHon with whom wo transact liUuineaH on credit, tlint we niy know what they owe to us, ur what we owe to them. The accountH which we keep witli other pertions arc called FerHonal Accounts, and tlio rule for keeping them is, that every trnnfloctiun in which they receive anything from us, or that brings them into our debt, or that takes us out of their debt, is placed on the Dr. Hide of thuir account ; nnd that every transaction in which we receive anything from them, or that brings us into their debt, or relieves them from l)eing in our debt, is placed on the Cr. side of their account. We have therefore found three kinds of accounts used in Book-keeping, namely — L, My own accounts, called also Keal Accounts, which contain accounts of my property divided into as many particulars as I find necessary. These are not headed with my name, but with the names of the property, an account of which is to be kept ; — as Cash, Goods, any particular kind of Goods, Houses, Ships, &c., m all of which accounts the kind of property with which the account is headed signifies my8elf,in regard to such property . Hi, Accounts of other persons with me, called sometimea i FIFTH ■ET—DIRECTIOM. d7 Penonal Account!, dnr.rilwd above; and Ilf., Accoiinti ofgainfl orloMteN, such ni ProAt ond Lohi, Diiicount, Rent ChorgfHi, &c. all rvcripts or cxpontton for which no direct return is given or received. To theso \n to Iks added, the Stock and Balance Accounts. Thme aro UMd merely to show at one view the Mtuto of my oflhirn at mmic particu- lar time. The Stock Account commences with a state- ment of what I poisenfl, on entering into huMiness, and after every balance of my books. The Balance Account showS) on examining the Ntale of my afl'oirs, on the one side, all that 1 poNMcss, and all that ist due to me ; on the other side, all that is due by mo tootherd. These two accounUf therefore, ore used merely in commencing or closing a set of bookfl, no entry being made in them be* tween one balance anvi another. The chief of the accounts called fictitious, more pro- perly accounts of ^' tin or loss, is the Profit and Loss Ac- count itself, the others being only oubdivisions of it, and being concentrated into it, in balancing the books. DIRECTIONS. Proceed, as in the former cases, to copy the following transactions in the Day Book. In posting the Journal, remember that the transac- tions are upon credit, except when the contrary is specified; as when it is said, Bought /or Cath, or Sold for Cash ; in these cases you journalize as in Set III., making Cash Dr. when it cornea in, and Cr. when it goes out. But when sales are made to per- sons mentioned, and it is not said that they paid Cash, make that person Dr. to the Goods sold to him ; and when you purchase goods of any person, and it is not I I 18 BOOR-KUEPlNti. mentioned that you paid (.ash for them, make your- eelf, that is, y ur accou t of goods, Dr. to that per- Bon* When Cash is received, while no property is given for it, as gifts or legacies, make Cash Dr. to Profit and Loss. The Cash came in, thcrefure it is Dr. ; and as it ia elear gain, it is made Dr. to the Profit and Loss Account, which contains the accounts' of gains and losses. When Cash goes out without any return of property that can be added to Stock, as in paying wages, rent, losing money, Stc, then Cash is Credited by Profit and Loss. The Cash went out, therefore it is Cr. ; and, as nothing was received for it. Profit anu Loss is its Dr. In manufacturing esta- bhshtnents, the wages of workmen are paid for the addi- tion made to the value of the raw material manufactured, and, therefore, ought to be put to the debit of the goods on which they are expended. Having finished the Journal, open accounts as before, for Stock, for Cash, and for Goods, and also for every person who is made Dr. or Cr. in the Jourral. You then go over every entry in the Journal in order, as in- the former Sets, posting them into their proper accounts in the Leger, every item being posted to the Dr. side of one account, and the Cr. side of another. Having made a trial balance as in the former Sets, pro- ceed to balance the Canh and Goods Account as before, the balance of the Goods Account being the quantity of Goods on hand, taken by inventory. Then balance each of the personal accounts, adding up the two sides of each and putting the difference, as before, on the smallest side, saying, ' To Balance,' if it be added to the Dr. aide, and * By Balance,' if to the Cr. side. . S ^ li FIFTH SET — DIRECTIONS. 39 I Add up the two sides of the Goods account, after the balance of Goods on hand has been added to the Cr. side, and put the dinbrence to tlie smallest si.ie, saying, * To Profit and Loss,' if it be added to the Dr. side, and < By Profit and Loss,' if it be to the Cr. side. Open then a Balance Account, and enter all tho balances of the different accounts as before. If the balance of any account stand on the Dr. side, enter it on the Cr. Bide of the Balance Account, saying, * By ,' (the account fronri which it is taken,) and vice versd. Balance the Profit and Loss Account, placing the dif- ference of the two sides to the Dr. or Cr. of Stock, and post it in the Stock Account. Then balance the Balance Account, placing the difference of that account also to Stock ; and if the two sides of the Stock Account are equal,, when the balance of these two accounts is posted, the books are correct. ^ ON TRACING TRANSACTIOiJS FROM ONE D(;0K TO ANOTHER. It is often necessary to find how a transaction recorded Ui tlie Waste Book, has been entered in the Journal, or how it has been posted in the Leger : or, on the contrary ^ to trace back some entiy in the Leger, to the original record of it in the Waste Book. This is effected by the number of the pag«, or folio of the book into which any entry is made, being entered upon the book from which it is taken ; and also the number of the page of the book from which an entry is posted, being entered into tlie book into ^hich it is posted. It is not necessary thus to con- nect the Waste Book and Journal, because the order e>( the dates being followed in both books, the date 40 BOOK-KEEPING. 1 will be a sufficient guide from one to the other. But as this order is not followed in the Leger, it is necessary to connect the entries in the Journal. When, then, an entry is made from the Journal to the Leger, as above described, it is usual to note on the margin of the Journal, the two or more folios into which the transaction has been posted, and to mark in a column, ruled in the Leger for that pur- pose, the coresponding Leger folio. Entries can b« traced from the Leger to the Journal by the date. Thus— IN THE JOURNAL. 2 17 Dr. Cash to Tobacco The figures in the margin— -imply that the 17 Cash account is in folio 2 of the Leger, and the Tobacco Account is in folio 17. 20 IN THE LEGER. 8 Dr. Cashf Jan. ' 6 To Tobacco ir 20 Contra , Cr. 17 17 J>r TobaceOf { Contra, Cr. • Jan. 6 By Cash. 2 20 The number 17 in the column immediately beside the money columns in the Cash Account, signifies that the Tobacco Account will be at folio 17 ; and the No. 2, in the corresponding column of the Tobacco Account, signi-* fies that the Cash Account is in folio 2. tlfTH SET. 4.1 • • — 17 the the \, in gni* WASTE BOOK. Dublin, January 1st, 1832. I have on hand, Cash - - - - je 254 18 10 Goods - - - - l*il7 2 3 1- £ s. d Received from John Black & Co., Goods, as per invoice ------- ■1- 14721 J 117 19 5 Received for Cash Sales this day 2 Paid James White on account - - - 2 13 4 2 20: ol Received the late Mr. Gordon's Legacy, deducting duty ------- This sum haYing beeo receired without any re- turn, it is Journalized^ — Cash Dr. to Profit and Loss. Received for Cash Sales this {I:iy - - 3 Received from James White^ Edition of Euclid's Elements, per invoice - - - Received for Cash Sales this day - - 18 10 13 14 75' 3 11; 2 A 4i DOOK-KKEI'LNC. Dubliiii January 4M, 1832. -* I ^ ■■ I — I Sold A . Mficarlluir, I 1 Euclid XO 7 6 1 Wiilkor's rictioriary - - 10 6 [ 6 Spdliti-r Books at 9^. - - 4. 6 t 50 Reading Books at 'Zs, • - 5 £. s, d -.1- j Paid JanKis Wliito on account I 4, 4.0 Paid Clerk's Salary, one lialf year, end- ing this dav -------- I Notliing; being received for Clerk's Salaries, I liiat cuii be added to the Accountof Stock, and the Cash going out, Profit and Loss is Dr. to Cash. 37 Received for tliisi day's Shop Saks 5 Kemilted John Black & Co. on account 100 5 Received from James White, Spelling Book::*. }>er invoice ------ •5 Received for Shop Sales this day 5 Received from John Black & Co., Goods, per invoice -------- 15 53 2! 6 10^ 2 3 16 71 6 8 . FIFTH SKT. Dublin^ Junuar;/ (il/i^ 1832. Sold A. IMacariliur, 24/ Sciipluro Gc<)<;ra- phy, at 6(1. - - - . XO 12 100 MacuIIocli'ti Ri'ad- iiill, at 3s. - - - - 15 20 Dictionaries, at 2a. 6d. - - 2 10 43 £ », J. -6 Paid James White on account - - 6 Paid lialf year's rent of Warehouse - ■ Rents are on the same? fooling ^vilh Salaries, and, therefore, Profit and Loss is Dr. to Cash for Ihcni. -6 Bought a house in Ca])cl-.stret't, and re- ceived for my bargain - - - - _ This £20 being clear gain, and Ihc Cash being received, Gush is Dr. to Profit and Loss. i Sold A. Macarthur, 10 Thompson's Arith- metic, at 3s. - - 12 Thompson's Geo- graphy, at 2s. - £1 10 - 1 4 Oi IS 2 1719 4. 50; 20 Received amount of this day's Cash Sales ■ T'fS' 2 8 Received from A. Macarthur, on account : 20; 8 _'-_ 2il4. u BOOK-KRPING. Remitted John Black & Co. on account 8 Received nmount of this day's Cash Sales _--.- 9- Lost a Bank Note, value - - - - - Nothing being received for this jCIO, and the Cash going out, Profit and Loss is Dr. to Cash. Took Stock, and found in possession, Cash je54. S 6 Goods 1398 15 7 Debts due to me - - - 6 18 6 Debts due by me - 11 7 5 60 919 10 1460 QUESTIONS ON THE FIFTH SET. What does the Fifth Set contain ? What is the rule for keeping Personal Accounts ? How many kinds of accounts have we found used in Book-keeping ? What is the first t The second 1 The third 1 What two accounts are used merely at the commencement and close of a set of books ? What arc Fictitious Accounts *? What do you understand by bought for Cash ? What, if the word Cash is omitt- ed ? How would you enter Cash when it comes in, without property going out 1 How would you enter Wages, Rent, Lost Money, &c. "i How would you enter wages in a manufacturing establish- ment 1 What is to be done when the Journal is finished X ( SIXTH SET. 45 EXAMPLES OF MY ACCOUNT. i, e, REAL ACCOUNTS, SUBDIVIDED INTO VARIOUS KINDS OF GOODS ; ALSO OF TRANSACTIONS BY BILL, WITH DISCOUNT, INTEREST, &.C. Copy the Day Book given below, as before. In Journalizing, Credit Stock for all the articled in the inventory, and Debit it for all debts due, either in BiIIh Payable or othervrise. Every description of Goods that comes in is Dr. j and every description of Goods going out is made Cr. In both cases the quantity must be specified. Bills Receivable are Bills for which I am to receive payment, or which are payable to me. Bills Payable are Bills which I am to pay. When I receive a Bill Receivable from any person, in payment of Goods bought by him. Bills Receivable are Dr. to Goods, bec^ use the Goods went out, and the Bill came in. Wii -u I give my own acceptance or note for Goods, then Goods are Dr. to Bills Payable ; if the Bill was that of another person, previtusly entered to the debit of Bills Receivable, then Goods are Dr. to Bills Receivable. If the Bill was received from a person with whom I have an account to wards that account, then Bills Receivable Dr. to that person ; or if a Bills Receivable be paid to a person with whom I have credit, that person is Dr. to Bills Receivable. If I pay my own note, or give an acceptance to such a person, he is Dr. to Bills Payable. i6 TJOOK-KRFriSCJ. Wlicn fi Bill is pnirJiMsod for Cash to lio ivinitloti, it t« usual not lo (?ntiM- llic Dill in the Lp^it nccoiint of Billa Rocoiv:ii)l»*, hilt simply to iii;iKc tht^ jmm'soii to vxhoiri it is roniitti'tl Dr. to Cnsli. WhtMi one porson's acroptanco is paid to anotlior por- Bon, with holh of whom I havo n<'f'onnts, it is usual, in~ stcail of passing llio Pill thri)iii!;h the accounl of BilU Reccivahlo, to make tho person to whom the Bill \vaspai«l' Dr. to the arroptor of th(» Hill. When I got Bills in my possossu^n (lisroiuited, i. e. when I roroivc Cash for then! h(»fore they he duo. th«j Interest or discount heiiip; diMhirtcil, Bills Roceivald*; nro Cr. by the Cash received, and hy the ^discount ; h-rausc the Bills wont ont and Cash came in for the amount of tlie Bills, after deducfiiifr discount. When I discount a Bill, i. e. when I pay the Cash for it boHjro it he due, receiving ih ^ interest or discount, Bills Receival)|e arc Dr. to Cash, and to Discount, both together making the amount of the Bill, because the Bills came in and the Cash went out. When a person pays an account, partly in Cash partly irt Bills, and discount is deducted from his accrount, he is Cr. by Cash, by Bill Receival)le, and by Discount. All Charges, such as rent, wages, interest of money borrowed, may cither ho placed to the dehit of the Profit and Losa Account, by posting them " Profit and Loss Dr. to Cash," or a separate account of them may be kept,ana only the balance transferred to the Profit and Losd AG[». count, when the books are to be balanced. I SIXTH SET. 47 WASTR ROOK. Vui/lin, Janvanj 1st, 1S32. or II) i. U- INVK.XTORY OF VRorF.UTY. Goudi on hand — Cut. Alum - - • Copptras - Tobacco - " Su|2;ar - - - Opium - - (ialls - - - Clovcrarcd - Corkw(K)d - Barrel staves Bottles - - - Wine 8 pipes 4 — 36 dozen 73 — q. lb. .s. d. 3 ut 11 ^p* 0—09^ 1 yj— a '^ 3 — If) y 7:j —12 3 #- 1 K) — 2 ('} <\jif 2 —80 ^ - StoiiJeU't.at L-2G !K 2()M. atX'l2 '3s. ^i" 7 23 12 12 12 cwl. 8i Port, rjross, 109 — • Capo, 3 pipes Tcncriflfc, '1 — Jjsbon at 5 butts Sherrv at 27s. at £72 £80 48s. 45?. 21* £48 £58 £(J3 4f ^ r. 5 — « lb. 413 rut. 28 lb. 41 •— 18 cwt. 50 ton 214 M. 315 gr. 11 pipe57(i — 320 do2. 8() — 164 — 114 pipe 144 — 232 butt 315 s, d. H 6' 12 3! 10 Oi 13 9' 14 3 5 Oi 10 18 0' 9 i) oo; Oi n 5 9 Debts due to mo — Caslellaine h Co. Ceurns, Cary, & Co. Bills receivable — Josh. VMIsoti's acpt. due 23rd E. and J. Kelly's, due 15lh Feb. John Harding's, 4th March Stephen Delacour, 17th March 42 72 5 10 4 35 56 8 17 17 50 Carried foiioard, 3063 114 3 3 15; 4 I 159 3337 3i 7 4.S BOOR-KEEPING. Dublin^ January l«f, 1832. Brought forward] 3337 Cash on hand ' 137 Warehouse and Slorcij valued ai • • - 12()0 The above Inventory of my pronrrty miut ho poiti'ii in thii lifKcfi >■> »><■ Cr, ■ijc of thu Htock account antl in thu Dr. itidr orrnch or the ■t'piiratv nrtit'lcM ol' Koo(U, and niih iil ihf pcrNunN who owca nic money, uUo ol ih« liillx Kfct'iviil)|«' the CiiMh and tho Wiirclioimv and Utorcii. In JournulizinKi thrrvlorc, luy, Cr. Stock: h 8 12 a cwt. q. n». *. d L. #.,dl Dy Alum - - . 7 3 o nt I « — CoppvraH . - 2.1 u (I " ^ kr. 8ic he, — I CnHielline fc Co. - - - . &<-. &c. &.C. — UillH Rt c«ivttlde . - - - — CtiMh — Wiirehouie and Storfu ... I20ui U IA9 J3- 1 Debts line by me — To Ebcnezer Grinishaw - — Ttiomoa Sherlock &, Co. — Coutts 8t Co. - - - - X102 6 8 - - 67 9 2 - 37 19 List of Bills payable — My Promissory Note to Na- i thanicl Low, ut I day's date, S 1000 payable with interest - - ) Acceptance of Johnston & Co., Due 19th January - - - - 36 5 3 Do. to McDonnell & Co., 4th March 172 3 5 Do. William Murray, 13lh April 18 4 These are debts due by nio, partly in the form of Bills Fayable,Hud partly in the form ufBtilan- ccs against me with pernons with whom I have accounts. They must be put to the Dr. side of Stoclt, so that were the Stock balanced, the dif- ference between the two sides would be ray net properly. In journalizing, therefore, say, Stock Dr. to Ebcneier Grimshuw, &c., To Bills Paya- ble. t. 3 10 7 4674 13 197 1226 12 14 10 1424 7 10 8 «IXTM RET. Dubliiiy J.inwtry 2nJy 1 83 '2. Rert'ivtNl (Vom Antdtiio Silvn Sc ('o., St. UbcH, Ir«v()ic(» of Snlt, Nhippcd |>»*r tlio Active, 3'i tons, at X;') ptT ton - - An Inruicc iii n iiotii <> of ^ooiiii unit ofl* to tnn, statin)^ tlir kind, (iiiiititity, mid value. Aa • rases Leghorn TIats, per list - - - 73r>' Freight from Leghorn, and Charges ut | Florence, paid l>y him - - - - ' 34< I6j Commis.sion for purchasing, 2 per Cent. Id 7 10 3 10 4 Bought of John Jameson & Co., Dodder Bank, 3 puncheons Malt Whiskey, J. J. No. 1 to 3, 168 gillons, at 5s. 6d. - - ' 46 4 Storage charged thereon - - - - 12 47,1 b' DO AUOK-KCCPING* Duhlitiy Jnnwinj \ih, 1832. Paid duty on 1 pun. Malt Spirits, 50 OuN. | nl '2h. fid. -.---.. 700 IVrniit and OH'umt'm II»oh - - - - , 6 8 Thosi! ur« oxpmiwit mhliii^ \a l\w co«t of tha ' j Malt Spirit*. Malt Spirit* ihcrvtbro ia niadu Dr. "" toCaah. 7 tii t Sold John Curnplu'll ik. Co., Sackville-; struul 1 Puii. Mult Spirit 56 GuIh., at dn. Ihl 25 18' (I •6. I Sold Ward, Pring, &, Co., nl 2 nioiiUis 1 caiu Opium, KiJIb., ut lis. 6d. - Sold forCuHh to EdvvanI (irfint j 3 dozen Capo Wino, - - - - 22s. 6d. j 3 do. BottU's unilor do. - - • - 2s, fid, I This is u Hiilitl'or (!iiHh. The Cush cnmc in ; it is* therefore Dr. The Wine went out ; it in Cr. ; and Edward (irunt^H nam» doi^s not nppeur in tjie ^Legcr, BO fur as this trunsactiun is concerned, lie ichould, however, I'e mentioned in the Journal thus — Ciisii Dr. to >Vine, sold Kdward (jrant for Cash. The bottles here go along with the Wine, having b«cn so cniiTcd in the inventory: this is indicated by the word under, llud the bottles been empty, they wuld have been entered to the Cr. of the Bottle amount. Received from Castellaine, Schaezler, & Co., LondcMi — Invoice of 4 Casks Brandy, shipped at Bourdeanx, 2r{rd Dec. per Aurora, 90 days, ul jC66 lOs. - - - - 11 19 3 3 76 0| 7|6 3150 266 i IX fit MKr, 51 '• Dublin, Jimuartf tth, 1^32. AccapttMl Antonio Silva nnd Co.'h ilrnft Qt 4 inoiitliH I'roui 'iOtli DtM'tMiilH^r, lUu* 23ril April in London . - - - - To acr('|it n Hill or Driil't ii to put my n;itn« upon It, oIiUkIkK iiiyM'll' lu|>, thcrvfurr, arc Ihua paid Ity ii Mill pnyuliln. i'lir |)raft hiiving hfcii ucccptnl by my Mignalurc*, wrnt uut ) it ia Ihircroro (^r., Ami Aiituiilo Hilvii N. Co. Dr. I any, ilicrii'virf, Antonio SiUn K, Co. Ur. to BUU Payable. 165 :9-. RpccivcU of John Campbell on account 10 Paid duty on Salt, per tlic Active £4> 19 Landing and Cartage - - - - 5 6 •10- ! Paid duty on 2 |>iinrheonH Malt Spirits, 1 ICi gallons, at 'Jm. ()d. i U Penult and Qirirei'ii leo I 13 4- U13 i jSoltl John Jameson & Co., 2 mo., 1 pun. Mall Spirits, 5(1 gallons, at 93. 6d. - 26 50 (« 4 Paid Freight and Charges on Leghorn Hata 7 0[ 6 52 BOOK-KEEPING. Dublin, January \Hh, 1832. Received of Ward, Pring & Co. Finlay &Co.'s acceptance at 61 days - Cash in full of 0])iuni - - - - - Ward, Prino;, & Co. here pay me partly in a Bill Receivable, and partly in Cash. Tlic Bill and the Cash came in ; therefore they are each Dr. to Ward, ?ring, and Co. ■ 11- Sold Thomas Sherlock and Co. 6 m. Barrel Staves, at jC15 ------- .12- Sold Robert Smith, Stephen's Green, 2 months, 2 pipes P. Wine at £8+, - - 168 9 19doz.Cape, „ 23s. - - 21 17 19 „ Bottles under do. at 2s. 6d. 2 7 C s. d. lOi 1 19 3 11 90 19 3 8| gro. empty hots. 30s. - - - See entry on '.he Tth respecting bottles. 192 12 204 4 6 15 19^ 6 ■13- Bought of Cearns, Gary, & Co. Liverpool, at 4 months, 75 barrels Potashes, per Invoice, at 93s. •14- 348 15 Sold Ebenezer Grimshaw, Meath Street, at 2| per Cent, for Cash, 14J cwt. ('opperas, at 6s. 6d. - - - I4i 3 . SIXTH SET. r)3 > Dublin, January W/i, 1832. Accepted Castellaino & Co.'s draft at 90 days, due lOlli April 14 £ s. 266 j Accepted John Jameson's draft at 2 ! months, due 16th March - - _ . ■15- Paid Edward Smith & Co., Delacour'a j acceptance ----jtJ50 00 Cash in full of Herrings - 20 j I owed Edward Smith ^70, and having Dela- cour's acceptance, or Bill Receivable, as stated in the inventory of my property, I gave that in part payment, and gave Cash for the remainder. I therefore say, Edward Smith Dr. to Bills Receiva- ble and to Cash. 16 -16. Sold for Cash to A. Mac Arthur, 121b Nut Galls, at 2s 8d .17- 47 70 Sold for Cash to Mendicity Institution, 20 brls. Herrings, at 25s. - - - - 25| 112 I Sold Thomas Sherlock & Co., Abbey- I street, 6 1 days, * i 1 12 tons St. Ubes Salt, at r25s. . - - i 75' ol 54 BOOK-KEEPING. Dublin, January 11 tk, 1832. Received of Tliomas Sherlock & Co., in payment of Salt, J. Tottenham's Note, due 4th February - - - - je40 Cash 34 5 Discount for 2 months' interest allowed 15 .1 This Salt was sold for Ihe £75, but not to be paid for two months (see former entry). Mr. Sherlock offers to pay nic immediately, if I will allow him interest for his money for two months, and take as part of it a Bill due in about a fort- night which I agree to. I therefore Credit Thomas vSherlock, By the Bill Receivable, By Cash, and I By the Discount, which three items make up the whole sum. 17- Sold Ebeiiezer Grimshavv, at 2J per Cent. . for Cash, 5 cwt. Alum, at 13s. - - £3 5 10 m. Staves, at jE 15 - - 150 3 cwt. Cloveweed, £Q - 15 17- Received of Thomas Sherlock, Cash on account --------- ■19 Remitted William G. Taylor, on account of Leghorn Hats, my note, payable at Coutts & Co.'s3l days I owe W. G. Taylor money, and I draw a pro- missory note, binding myself to pay him £500 in 31 days, which I send. This is a Bill Payable, I therefore make him Dr. to Bills Payable. s. d. 75 168 20 5 I V 500 SIXTH SET. 55 rf. ^ 'ajf' Dublin J January 19/A, 1832. Paid my acceptance to Johnston and Co. due this day -------- This avceptance ii one of the Bills Payable, mentioned in the inventory of my property. It became due, and I pay Cash for it. The Cash goes out, it is therefore Cr. ; the Bill comes in, it is Dr. I say, Bills Payable Dr. to Cash. -21. Paid Carolan & Co. for Aherations madej in Stores per agreement - - - .23- Sold Thomas Sherlock & Co. for 3 months' Bill, 12 brls Potashes, 35s. - 15 do. Herrings, 26s. - 10 M. Staves,. je 15 - 10 tons Salt, 125s. - je21 - 19 10 - 150 - 62 10 -23- Sold for Cash to Boileaus and George, 40 lb. Opium, at 13s. - - - £26 50 lb. Galls, 2s. 9d. 6 17 6 8J cwt. Copperas, 6s. - - - - 2 11 1 cask Brandy 87 -25 Sold Robert Smith, Stephen's-green, months, 1 cask French Brandy - - je87 14 1 hhd. Sugar, 12 cvvt. 3 qr., at 44s. -. 27 1 3 pipes Pt. Wine, £85 - - 255 30 doz. Cape, at 21s. 6d. - - 32 5 36 s.'rf. 5' 3 15 253 122 8 403 56 BOOK-KEEriNG. Dublin, January 25M, 1832. Drawn on Robert Smith in i favour of Castellaine and 1 Co., at 31 days - - - Je282 Discount allowed by Castellaine } and Co. for prompt payment 3 3 10 I owe money to Castellaine and Co, j Robert Smyth owes mc Hioney ; I therefore draw a bill on' Smyth, in favour of C...st( Maine, which is in efl'ect a direction to Smyth to pay the money to Castellaine ' on my account. But I thus pay Castellaine before the money was due, and he allows mc discount for prompt payment. If this transaction were entered' fully, I should make Bills Receivable Dr. to Robert Smyth, and Castellaine Dr. to Bills Receivable :' but the usual method is to make Castellaine Dr. toi Robert Smyth, by which the two entries en the Bills' Receivable account are avoided. .25-. ^85 d. 10 Remitted Coutts and Co., London, Tlios.; Hodgen's draft on Hilton and Co., 61 da3's! gOO Bought from Gibbons and Williams at par. \ wish to remit money to Coutts & Co., London, I therefore go to a Broker, or to the Exchange, and purchase a Bill, payable in London, for the amount.' To enter this fully, I should first say. Bills Receiva-I ble Dr. to Cash, and then Coutts & Co. Dr. to Bills. Receivable. The usual mode, however, is to regard \ tlie Bill sent as Cash, and say, Coutts & Co. Dr. to Cash, I SIXTH SET. 57 d. 10 t Dubliuy January Sf^M, 1832. Paid Rent of Warehouse for last month - This and the following entry, being payments of money, without any direct return, or any other person bein^ chargeable witij them, may either be put to the Dr. of Profit and Loss, or if I wi»h to keep a separate account of such charges, I niay open an account for Warehousi; rent and charges, and make that account Dr. The eiTcct is the same, for that and similar accounts of expenses, must come into the Profit and Loss account, before tlie books are balanced. -29- Paid Postage Account - - jGI 13 8 Twine, Ropes, and Packing Cases 4. 3 Clerk's Salary - - - - 5 Porter's Wages - - - - 1 12 -29- Received Invoice from Castellaine & Co. of Pearl Ashes, shipped from Haltimore, per William and Mary, 100 bar., at 87s. 6d. -29- Deficiency in settling Casii, sup])osed lost - Here the Cash went out, it is therefore Cr. ; but as it was lost, it is creditci'. by Profit and Loss, Say, Profit and Loss Dr. to Cash. 10 d. 12 8 437 10 15 3 C 2 I J' Si M BOOK-KEEPING. Dublin^ January 29M, 1832. Sold El)C'nezer Grimshavv, 50 brls. Pearl Ashes, iidvv on their way from Baltimore, ilelivemble 7 days after arrival, at 100s. - - - n 30 Received of Ebenezer Grimshavv, J. Wilson's note, 4 Mar. - - £15 10 Wm. Kelly &. Son's acceptance, 3 April 100 Tiiomas Modgens' acceptance, 11 April 37 10 Edw. Carpenter's note 20th April '25 Cash on account of Ashes - - - - Discount allovved,2 months' interest on Cash E. Grimshaw owes nic money, he pays nic in part with Bills on the persons mentioned, partly in Cash, and I allow him interest for the Cash, be- cause it was paid before it was due ; therefore, E. Grimshaw, Cr. By Bills Receivable, By Cash, and By Discouut. 31 Discounted with La Touche &. Co. E. and J. Kelly's accp., 15th February - - - - ^£56 8 John Harding's accp., ith March 17 17 Jn. Tottenham's accp., 4th February - - - - - 40 Wm. Kelly & Son's accp., 3rd April 100 Interest per docket - je214 5 - 2 7 I have these Bills in my possession, ivhich are 250 (/. 178 22 4 200 5 5 212 t 7f 5 f) SIXTH SET. »» Dublin, January 3]st, 1832. not yet due ', but I want the money immediately. I therefore take them to a Banker, who gives me the money, deducting the interest for the time that thev have to run. The Bills went out ; therefore Bills Receivable is Cr. tlrst by the Cash received for them, and secondly by the Discount or Interest. ■31- s. d. Remitlcd Coutts &, Co. Jamea Hamilton's draft on Jones, Lloyd, &Co. - - - £210 Discount ^ per Cent, received 1 1 208 19 Having occasion to remit money to Coutts &, Co., London, I purchase a Bill of Jones, Lloyd,! &. Co., London, for Jt2lO; but I pay only £208! 19s. fur it. I may cither make, iirst, Bills Re- ceivable Dr. to Cush and to Discount, and then make Coutts Sc Co. Dr. to Bills Receivable for the whole sum ; or I may make Coutts & Co. Dr. to Cash and to Discount, and not enter the bill in the account of Bills Receivable. -31- Received payment of John Wilson's ac- ceptance, due 23rd instant - - - - This was a Bill in my possession, which after falling due was paid : the Cash came in, it is there 'fore Dr. and the Bill went out, Cash is Dr. to Bills Receivable. 35 ■31- Error in charging Thos. Sherlock & Co. Potashes, 23rd January, 12 barrels at 35s. instead of 95s., say 60s. per bar. In this entry an error has been detected in the iBooks^ and the mode of correcting errors is not to 36 t 1.' r eo BOOK-KEEPING. Dublin, January 3Ut, 1832. Imakt! crnfliircs, but to miikr ndilitinnnl entries of an opponito kind. In thiit entry, g kxIh Mold had by' iniiilukc, bo(!n ehar^ed too little ; tin- person who bought them, must therefore be made Dr. to the' kinui of goods bought by him, for that uinount of tho error, .31- Drnvvn on Robert Snivtli in favour of W. G. Tnylor, at 31 dayn f(»r X282 Discount nllowod for promj)t payment .-----33 10 Sco a similar entry on January 2i>lh. 31 Error (lispovcrctl, in placing to the accoiint of John Janioson, 1 pun. Malt Spirits, [• sold to John Campbell, on Jan. 9th - - j When one person is thus by mistake debited in- stead of another, Cr. tho person so charged, By error, •and Dr. the person uho ought to have bciiii debited, |To the Goods i^oldhiin. 'J'liu only alteration in the jrcal account credited i.s, to draw the pen through the [name of the person, erroneously entered, and to write lOver it the name of the proper person. The amount ;in the money column remains unaltered. ^ 1 ~il- S. d. 285 310 26 12 [Error in giving credit to Thomas Sherlock, i for Casli paid by E. Grimshaw, on i January 1 7th, I This error is similar to the last, and must be cor- rected in a similar manner. Enter on the Dr. side of j jThomas Sherlock's account, To error, and Cr. E.j (irimshaw. By Cash. On Uic entry on the Cash account, draw the pen througli the name of Thomas: Slicrlock, and write E. tJrimshaw over it. j 20 SIXTH SET. Gl d. 310 2; f/ )| Dublin f January 31«/, 1832. Opiiiiii, Hi} Ib.y Gulla, 81 II). CIoverjH;t'il, f> cut. 2ii. Corku'CKHl, H ton f) cwt. VViiH', G pipes I'urt, Do*, 1 ,, do., Do., 73 doz. do., Do., 'Mi ,, do.. Do., 07 ,, Cape, Do., 3 pipes TriicriflTe, Do., 4 ,, Lisbon, Do., 5 butta Sbcrry >^ult, 1 1 tons, , Herrings, 3f) barrels, „ 2()s Leghorn Ilal.H, 4 eases, - - - Mult Spirits, .'iO guls., „ 8s 3d Brandy, 2 euhks, „ jL'()G 10s Ashes, 113 barrels, viz., INVENTOnv OK GOODS ON Alum, 2 ctvt. 3 q., al 1 In. Tobaceo, 12cvvl.0q. 5lb. „ Gs. „12«:m „ 2.sGd „ 8Us „ JL2G „ X72 „ ,.f8() „ lot* „ 48s „2ls „ £AH „ XM „ L(i3 l()3s 2d HAND. £ $. I .101 10 lo ■AH 214 4;i2 80 IGl 8G 111 232 315 56 H5 7!»2 23 133 18 II » A. '0 10 5 8 17 14 4 •> G3 50 .•J » y3s 878 Cd 292 19 218 15 (1. G 10 4 10 15 37 25 10 10 Bills Receivable on liatul — Finlay 8t Co.'s nceeptnnee, - - James Wilson's note, 4th IVIareh, Thos. Hcdgens' do., lllh April, R. Carpenter's do., 20lh do., - Cash on hand, - - Warehouse and Stores valued at Carried forward, TluT is an Inventory taken as a prtparntion Cor balancing the l)OokH. Balauci: is made Dr. to all Ooodi),an(l property olVvt ry (ltHrrii)lion,n innin- ing in my possession. The property in ttiis case consints oftlu- various kinds ol'GoodN < numerated, of Cash, ofWarelioiise, ol'Bills Rr( < iv!il)le, and of Debts due to nie. tiaeli descriplion (ifCioods for wliicli nu account has lie< n op< iied is credited, By Balance, for the (luantily nnd vuhu on hand; also Casli, for theCasli <>n hand ; and W,! rehouse and Stores, for th«' value olt'icni; Bills Rueiv- able, for the whole amnuit of JJi'is in one sum ; andpersonsjfor the i.ums: due resptclivel> jy thcra. X' d. 3744 19 91 88 130 1215 5178 11 10 f 1 f t i * I 09 DOOK-KREriNG. Dudlin^Januart/ 3\st, 1832. Brought forward, 5178 10 , »! LUt r)f Dt:l)ts »lii(» to n»C- John Cain|ib(-ll &, Co. Thomas Sh(>rl.M>k &c Co. - Ebmrzrr (iriinahaw Robert Sinitli CouUs ^ Co. £2 10 O! 321 10 10' 100 H 2 41 a72 1 31 List of Dohts due by mc- Castellainr, Schnezlur &c Co. Cearni, Cary &, Co. XllO 276 1 4 List of Bills payable — iMy note to N. Low, 1 dayN ilutc £1000 'Accp. to McDonnell & Co. 4 Mnr. po. Do. Do. Do. Do. >» » Wm. Murray, 13 April A. Silva & Co. 23 April Castcllaiiic &. Co. 10 April John Jameson, 16 Mar. W. G. Taylor, 22 Feb. 172 18 16") 266 47 500 3 f) 4 6 From my property must he deducted debts due by me. This is done l.y mnkiiiR them Dr. to Br- lance. The debts hcrtt arc halnnces of accounts not settled, and Bills Payiihjf. Balance is made Cr. by earhof thepers()ii»t(»\vhoni I owt money ; or, what is the same thing, each person is made Dr. to Balance for the amount of what I owe him, and Bills Payable are made Dr. in one sum, for all such bill« sliu remaining unpaid. 840 10 6019 386 2168 : 13 9i t 2554 , 19 V, SIXTH NET— to llilli Kin i^ublc < What if the Dill waa rcreivcii Irotri a ponton, ulih ulioni you lia\f< 'in account, towarUa that account? What if n Hill HrnivnWlc In paid to n person with t>honi you have crtdit t What ia done? when a Uill ia purchuacd for I'aahto be rciniitcd '{ What ia tlona nhcn one pcraon'a accoptanc« la puidto another, with lioth of whom you have acoounta ( What do you menu by p;ctling HiiU tliHCouni< d t Whut ia doni> when a pcr- i«on |>ay» itn .-icruuniin Cii.nh, ntid partly in Uilla 1 llow arc tram* Qi'iiona traciul from one book to another / HCVENTII SET. 65 JbrV)rnth Shtt. i EXAMPMOS. or JiLNr.l.r. AND KMNTCONSKiNM; T, Al>\ KMLUfch. rACTousmi's, rAUTMiKsiiirs, uc. If I 1 'irclinso a Slii >, t opon nn ncroiitit for ilio Clii|» (li'hit liial pccoiit I to Cash, for tlio piiii'liiHO ruoiicv. in- to whatever itlie ileMcriplion '»(* properly I havo i;ivoii Tm it, and rt'ilit .y whatever I receive by the Ship, ar frei^hf, &e., \ i..l, also, if I sell it, by \vh:it»'\i'r I may receive ri">ains in my jutsses'^ion, I mu>t enter the Ship esiitnaied at its present vahu^ ei. 'iy. Cr. ^ide of tlie account; and the dilU'renee between the twowidus will show the g.'iin or loss which has arisen ont of tny purciiase. The name u rections are applic!d)Ie t(» houses, land, or other property, from which I mny receive returns uithoui parting with it. I must open a sepju'ate accourit for every particular item of such properly ; for c\ami)li', every hoe-jc, every farm, &,c., wiiich I purchase, or let separately, I Cic'fi such accounts lo Cash, for all expenses laid out upon tiiern, and credit them by all returns received from iliem. When I balance such accounts, I must, as, in the case of Ships, enter on t'le Cr. side, the present value of the property, and the dillerence between the sides will show my loss or gain. If 1 ship poods on nn adventure, I open an account for the adventure, de!«cribing it in whatever wav uuw >4l 'V )' < lil' 1 i. 66 B00K-KCE1>IN6. render it most distinct, as, Consignment per the r (the name of the Ship) to , (the name of the , (the name of plare). Consignee, Mr. or Messrs. the person or persons) : or simply, Consignment or adven- ture, No. 1, No. 2. &c. the particulars being recorded in the Waste Book, I debit this account with the goods shipped, or with Cash laid out in purchasing goods for the adven- ture, and with all Charges ; and credit the account with all returns. If the goods be all sold, the difference of sides will show the result of the adventure. If part of the goods be unsold, I must, i a balancing, enter the value of them on the Cr. side of the account, as in the former case, such value being taken as it originally stood, and stated in an inner column of the account, and a percentage deducted therefrom, of the supposed reduction, if any, in the value, leaving the net account, or apparent real value, to be ex- tended in the proper column, to show the true state of the account. If I receive goods to be sold on behalf of an employer, for a commission, I open an account of Goods for the Ac- count of , (the employer) this account is made Dr. for all charges, and Cr. by all receipts on account of goods. If I sell goods thus consigned to me, on credit, I make the purchaser Dr. to this account of goods ; when the goods are all sold and the account is to be closed, by my re- mitting Cash or Bills, the account is made Dr. to the Cash or Bills remitted, and to Profit and Loss for my commis- sion ; or, if I have an account open for commissions, the amount of the commission is placed to the credit of that account. If the account is to be balanced before the goods are all. sold,, or the proceeds remitted, I open a personal account for aiy employer, and credit him therein, with SEVENTH SET. 67 , , what I may have received from the sale of his goods, and debit him vviUi what I have expended on the goods, also with my commission on the amount sold, up to the time when the balance is struck and furnished to him. The chief peculiarity of accounts of goods received to be sold on commission, is, that the value oftlte goods received is not entered on the Dr* side of the a( ";)unt in my Leger, because tliey do not belong to me; I keep the account of them in a separate book, as still belonging to my employer, although intrusted to my care: but, having entered on the Cr. side of the account of such goods whatever Cash or other property I receive for them, I enter on the Dr. side, what I remit to my employer, together with charges and commission. If I do not remit to him Cash that I receive for his goods immediately, I credit his personal account with the amount of his goods sold by me, and debit it with my commission. If I advance any proportion of the value of the goods consigned to me, before they be sold, I open a. personal account with my employer, as before alluded to, debit that account with the money advanced to him, and credit it for whatever I sell, the difference will then show how much he owes me, or how much I owe him. There are three cases of partnership. First, when I intrust goods to anotlier person to trade with on my behalf and his own, under certain stipulations. In this case, I state the terms, of the copartnery, in the Waste Book, and open an account for it in the Leger,. designating it briefly and clearly. If I engage in several such copartneries,! may describe them Com- pany, No, 1, No. 2, 8^c. This account is debited to, the goods or cash, which I contribute to the joint stock; in trade, and credited by every thing either of goods ■ I 1 ; f: I 68 BOOK- KEEPING. I or Casli, &..C. that I receive from it. When the account i^^ to 1)6 balanced, my Partner must ascertain the vahie of the goods remaining unsold, estimate the profit and loss in the ordinary way, calculate my share of either, if he pay me my share of gain, or I pay my share of loss, I debit the riccount for what I pay to Cash, or credit it by Cash for what I receive, as the case may be. Thediflerence be- tween the two sides in the Company Account will show the profit or loss, which must be entered accordingly. If my Partner do not pay me my share of gain, or I do not pay my share of loss, I Cr. the account, By Balance for my i-hare of gain, or Dr. it, To Balance for my share of the loss, after which, the account is to bo closed like any gooils account. By Profit and 1 oss. The scco7id case of partnership is, when I am intrusted with property to trade with, on behalf of myself and others, on certain stipulated terms. I enter the terms in my Waste Book, and open an account for the Company as before; but in this case, I open also an account for the *' Goods in Company," or accounts for the different kinds of goods in Company. I debit these accounts for what- ever goods or cash I contribute to the Company's stock. I then make the Company's account Dr. for all the outlay incurred by it, and make it Cr. by all that I receive for it ; if the outlay ^^as for goods to be added to the Company's ^tock, I make the account of" Goods in Co." Dr. for the outlay : and, if 1 receive for the Company, Cash or Bills, I make my own accounts of Cash or Bills Receivable, Dr. to the Company's Account, If I purchase Goods on credit for the Company, 1 make the amount of the Goods in Co. Dr. to the person from whom I purchase. If I soil on credit, on behalf of the ompany, I make the 1 SEVENTH SET. 69 person to wlioiii tlioy wore sold Dr. to the Goods in Company. When f would settle with my Partner, I find the gain or loss upon the " Goods in Company" Account in the usual way, and that gain or loss upon the Goods, I transfer to the Partnership Accoimt, making that account Dr. to the " Goods in ('ompany" Account, for loss, or Cr. by it for gain. The difibrence between the two sides of the Copartnery Account will show the gain or loss upon the whole business of the Company. 1 then calculate the shares of gain or loss for each Partner, according to the terms of the partnorship. If I pay my Partner his share, then the Company Account is Dr. to Cash, for his share of gain, and to Profit and Loss for mine. If his share is not paid, then I open an account for him personally, and make the Comi)aMy Account Dr. to his Personal Account for his share, and to Profit and Loss for mine. If loss was sustained, and he pay his share, then the Company Account is Cr. By Cash for his payment, anil By Profit and Loss for my share of loss : if he do not pay at the time, I open, as before, a Personal Account for him, and make him Dr. io the Company Account for his share of loss, pnd Profit and Loss Dr. for mv share. The ihird case of partnership is when the several Partners take pari in the management of the joint trade. In that case books are kept as for the trade of an individual. The »-eal Actounts, as Cash, Bills, &c. are accounts of the ('ompany : the Personal Accounts are accounts of persons di-aling with the Company ; and the Fictitious Account show the gains or losses of the Company. Bos 'ics lii.^se accounts, an account is opened for each Paittior, and each is made Dr. for whatever he receive^^ (rom the Company, and Cr. for ■r 70 BOOR-KBEPINti. •I f whatever he pays on its behalf. When a fsettlement is to be made, the books arc balanccil as in ordinary cases. The gain or loss is ascertained also, by comparing the two sides of the Profit and Loss Account. Here, however, occurs a dirterencc between booing belonging to a Company, and books belonging to an individual. The gains or losses are not properly gains or losses of the Company, but of the individual Partners of the Company, to be distributed among them according to their recspective shares. The balance of the Profit and Loss Account, therefore, is not carried to the Stock Account, but it is divided among the Partners, and carried to their personal accounts : if gain, to their credit : if los:? to their debit. The Stock Account, therefore, does not show, as in ordinary cases, the net profit made, or loss incurred, for the Slock of the Com- pany receives n« accession by profit made, or diminution by loss sustained, the profit going to the individual Partners, and placed to the credit of their Personal Accounts ; and loss being also charged to the Partners, by being carried to the debit of their Personal Accounts. Different methods are adopted by different Book-keepers in closing the Stock Account of the books of a Company. Perhaps the following is as simple and clear as any.-— Place as usual the gross value of the property of every kind, actually in possession of the Company, including the debts due to them, on the Cr. side of the Stock Account. If profit has been made, this inventory will of course include it, showing an overplus above the standing capital. The balance of the Balance Sheet, brought to the Dr. side of the Stock Account, will correspond with the standing capital, exclusive of gain ; and to make the Dr. side equal, bring the sums placed to the Cr. side of the Partners' 8RVPNTH SET. Tl Accounts, to Dr. side of Stock. The profits made, will then appear as debt;* due upon the Stock, to the Partners of the Company, and losses will appear on the Cr, side of Stock, as debts due by the Partners to the Company. If any transaction took place previou3 to the balan«e being made, between the Company ruid any of the Partners, such as, his receiving money before profits are ascertained, his account must be balanced among the other Personal Accounts, before ascertaining the loss or gain of the Company. But, the profits or loss«^s of that period, and first ascertained in the balance, are merely to be en- tered to the Partners* Personal Accounts, to stand to their debit or credit for the ensuing year. If any Partner wish his share of gain to be added to his share of capital in the Company, and the Company agree to it, then his share of gain, after being entered to his credit, must be entered also on the debit side of his account, " To Stock," and from thence being carried to the Cr. side of the Stock Acconnt, makes the intended increase to the capital of the Company. If the partnership is at the same time to be dissolved, the stock on hand must be sold or valued, the debts inward collected, and outward paid, and each Partner's share of the property paid to him, or of debts received from him. It however frequently happens that some one or more of the partners,'"or some other per- son or company takes the stock and debt of the Company at a valuation, and then becomes Dr. to each of the Partners for his share of the property, as per valuation. 7-i BOOK-KEKPINC;. WASTE BOOK- The lollowing transactions arc copicU from BrevvsterV EncyclopajJia. Tlie.se have been chosen partly because tljcy comprise, in a narrow compasH, the chief tliiriculties of the art of Book-keeping, and partly to show that the directions given are aj^plicable to business transactions generally. Dubliti, Janvari^ \ St i IS32. An Inventory of my Effects and Debts active, taken this date, by me, A. B. £ s. d. I have in ready money .... 2000 In the Royal Bank 4000 My House and Furniture are worth 1800 7 Pipes of Port Wine, A. . . .660 Delivered 4 Pipes into Co 1, under the direction of James Higgins . 320 Taken 5 tons of Madder into Co. 2, with John Scott^ (mark A.) . . 300 Due to me — By Robert Rummer 100 By John King, our Account of Ex- change in Co. 4 500 9580 8, d. SEVENTH SET. Dublin^ January 2nd, 1832. Bouglit of Thomas Willan, for ready money, 3 tons of Madder, at X2| per cwt. mark B, -------- Sold for ready money, 1 pipe of Port Wine - - - - - This transaction and the lust arc for Cash, and must be entered accordingly. Bartered with James Reeves, 1 pipe of Port Wine, for \\ ton of Madder, at J53 per cwt. M.C. ------- When one kind of goods is bartered for another, make tliat which comes in Dr. to that which goes out. — 1 2 -^ ^— - Lent James Walsh, to be repaid me in one month, with interest at 5 per Cent. Drawn on John King of London, O.A. of Exchange, a Bill of J650 at usance, favom" of James Qiiinn or Order, value received of do., at 1^ per Cent, advance! I have entered into a partnership with John] King of London, by which I draw Bills on him, and sell them, receiving the advantage of the Ex- jchange. I had £500 in his hands, as appears by Ithe inventory of my gjods, and this transaction is! 'drawing a Bill on him, and obtaining \{ per Cent, 'for it. I have an account for this partnership, I under the title, John King, our Account of Ex- change, Co. 3, and T make Cash Dr. to that Ac- jcount, for the whole sum received. 0. A. in the entry, signifies our Account. 7S je «.!(/. 160 94< 90 100 50 12 D 74 f BOOK-KBBPirfC. Dublin^ ^th January ^ 1832. Drawn on John King, of London, O. A. of Exchange, a Bill of JSI^O at usance, James Williams or Order, value receiv- ed of do. £{ per cent, advance - - This if a traniaction limilar to the lait, and to be entered in the tame manner. (deceived from James Higgins, the account of the sales of our Red Wine, The total sales of 8 pipes - je720 His Commission of 2^ per Cent. 18 Tlie Net proceeds - Je702 My half is jGISl Which he. paid me by a Drafl on the Royal Bank for that sum, and which I lodged there. James Higgin« and I contribute each 4 pipes of Port Wine to be sold, and the profits cqualljr divided ; but as he is to have tiic charge of selling .them, he is to receive, besides his share of tbei profits, 2\ per Cent, commission. The value omT .'my share of the Wine, as stated in the Inventory, was £320, he sells the whole for £720, his com mission is £18, the remainder is £702, which is to be equally divided between us; my share is £351, which he pays me by a Draft on the Royal Bank. I have already an account opened for this partnersln'p, under the title, " Adventures in Co. i I," which was debited to Stock, for the Wine em barked in it. I now credit it, By the Royal Bank, for the amount received on its account. 454 J. 10 ^d: 351 L teCVINTU SET. 7.% Dublin f 5M January y 1832. Received from the Royal Bnnk, the ba- lance of the Interest Account, ending the 24th Decemi)cr, . - . - - In Scotland, the Bonkcra gtte interest for money [lodged with them, und take interest for monoy advanced by them. In bottling this account, the balance was in my favour, and the Royal Bank pays me £40 interest. Hero I mny cither, first make the Royal Bank Dr. to Intercdt or to Profit land Loss for the interest due, and then make Cash ! Dr. to Royal Bank for the payment of it *, or I may at once make Cash Dr. to Profit and Loss, lOOIC'KMCPI.^O* Dublin y January 1\ih, 1832. Cuuiitorhalnncod hy the deHiro of John King of London, wiitit I owe him, hy the Invoice of IMiulder, ivceived ihiit (hvte, ni(ninHt what he owth nie, hy our Ac- count of Exflinnjfo — Tlie hnlanre to be brought to bin account — The bulunce to bo divided jg - - - - • He Hbipped in tlie Fame, Janu's LnwHon, Master, 5 ions of Mn»l«i«'r al JC3 per cwt. I had, un coniincncing, X5UU in the lianda of lohn Kiiii";, for thfl lUHoniit of Co. 3, to which I af- tfi wardit add n Hill of X'3(K). Itut which I puichaae for jL'2U7, 1 drew upon him for two suiiia, mnkin^ to KOlht-r £hO0. So lh;it ho litt« of mirio, according to thia .itatrmoiu, £2\yj ) but I hud made profit hy the Bills which I drew on him, which was to be equally divided wilh hitn, To cloae this account he sends mc Madder, to Die value of JC30U, and desires nic to settle the account, and give him credit for what balance may bo over. Here, I first make Mnddcr Dr. to Co 3. I then make the same Co. 3 Dr. to John King*s Personal Account, for his share of the profit ; and to Profll and Loss, for my share oCit, t. r. X'4. Is. 3d. each. ii' 25- Rubetl Runner is dead, and Insolvent, what he owes me is lost - - - - - This appears to be a total loss. I make Profit and Loss Dr. to Robert Runner for the whole. Should I afterwards receive any dividend from his I Bstatc, I should make Cash Dr. to Prcfit and Loss for it. 8 300 2 100 l/. t) dRVENTH IRT. 79 ? - - - - In Royal Bank - . - House, &c. Wine, 8 pipes - - - Madder, 9 tons Bills Receivable John Scott, H. A . WiUiam Ker 96 5 Debts due by me, John King of London 2Ha 4065 1800 615 520 4.17 101 9632 14 5 7; 6 O' 2 6 5 9, 5 1 3; 1. ti 6 6 5 3; SEVENTH SET — QUESTIONS. 8d i I ^ This Set may be balanced from the books without taking Stock, as the quantities of the goods received and sent out, were regularly entered. In real business, however, the goods on hand, should be compared with the balances of the quantities shown by the books. The Leger is. to be posted from the Journal, and balanced, as in former Sets j taking care, in the case of co-partnerifes and commissions, to follow the directions given in the in- troduction to this Set, QUESTIONS ON THE SEVENTH SET. Of what transactions does this Set treat 1 If you purchased a ship, bow would you enter the transaction in your books ? Suppose you received a certain sum for freight, how would you enter it t How if you sold the ship 1 If you should balance the account whilst you have the ship, how would you enter the ship 1 With wlmt other des- cription of property would you pursue the same plan 1 If you ship goods on an adventure, how would you proceed 1 Suppose part of the goods were unsold,, how would you manage when balancing the bookjb 1 If you receive goods to be sold on behalf of an employer, fbr a commission, how would you open an account 1 When you sold goods, how would you enter the receipts ? How would you enter Cash or Bills remitted to your employer ? How, your Commission "? What is the chief peculiarity of accounts of goods received to hv sold on commission ? How many cases of partnership '? What, is the first 1 In what book would you state the terms of the co-piirtnery '? la what book would you open an account for it 'i How ^vou'.d you u jbit this account t How credit it? What must be done .vheu the accouut^ are to be balanced 1 If your partrtBr paid you yo(ir share (if gtin, how would you enter it 1 How, if you paid your share cf loss '( How would you manage, if you neither received your share jf gain nor paid, h^ I m 'i S^ BOOK-KEEPING. your share of loss 1 How Is the account to bo closed I What is the iccond case of pailncisliii) 1 What other accounts would you open ill thin, besides thcsf; in the former ease 1 When you contribute !;ood8 or cash to Ihc Company's stock, how do you enter it 1 How, if you received Cash oi' Bills i How, if you purchase goods on credit for the Compay ? How, if you sell tn credit "J Wlicn you would •cttio tvith your partner, upon what account would you lind the gain or loss '{ To what account would you transfer this, ivhcn found 1 On ■what side cf the aceeunt is the gain to go 1 On what, the loss '^ What will (he diirercncc of the two sides cf the Co-partiiery Account show 1 If you p;iy your Partner his share, how would you enter it X What would yon do if his share is not paid I U your Partner pay hifi ihare cf a loss sustained, how do you enter it '? If he docs not pay it at the time, how then ? What is the Ihird case of partnership '' How arc the books kept in this case ? Wlial do the Real Accounts show ? What do (lie Personal Accounts show 1 What the Fictitious "^ What peculiar accjtuits are necessary 1 Wlion is a Partner mado Dr. 1 When Cr. ? On which side cf the Partner's Accounts is gain «*jtcrcd .' On which, less 1 How is the gain or loss stated in the. Stock Account? Why is gain stated on tiic Cr. side of the Stock Acccunt, as in ordinary cases ? If a Partner choose to add his sharr. of gain to the Capital, and the Company agree to receive it, how is that to appear in the Partner's Account 1 If the partnership is t)be disiolved, w hat must be done wilh the Stock 1 What with the debts 1 Suppose tliat the Slock cf the Company, or debts due to it, were bought l>yan Individual cr Company, in what relation would that Individual or Company stand to the Partner y i i [■} 85 SUBSIDIARY BOOKS. .» When the lran?artions connected with nny partictilar ac- count in the Lcger are very numerous and small, it is usual to keep a record of them in a book by tliemselve?, and to insert in llic Legor only, the sums of the transactions added up at stated intervals. For example, it would ob- viously be ridiculous to enter into a Lcger every shilling or sixpence paitl out or received. A n account of such small sums, therefore, is kept in a book by themselves, and added up once a week, or once a month, and only tho weekly or monthly sums put into the Lcger. Larger cash U*ansaction3 arc often treated in the same way. All re- ceipts and payments are entered on the Dr. and Cr. sides of a Cash book, and the sum of each i^ide brought once a month into the Legcr, by which contrivance there never can be more entries in the Legor than iuelve on each side, namely, 07ie for each month in the year. Sales are often managed in the same way. A book is kept for recording sales only, and the amount of salei added weekly or monthly to the Leger. In some extensive retail trades every shopman is made to keep a book, which is ad- ded up every day, and the amount transferred to a general Sales' book, which again is added up once a week or month, anvl the sum entered in the Journal or Leger. Sometimes in such trades, only one Sales' book is kept in the shop, and every shopman writes every sale that he makes on a slip of paper, and hands it to the Book-keeper^ who enters it in the Sales' book. 86 BOOK-KEEPtNG. EXAMPLE OF A BOOK OF HOUSE EXPENSES. Mar. 1 6 7 9 10 U 13| 14 16 17 19 20 21 33 24 26 27 28 29J 31 House Expenses Dr, to Cash. For a Scrubbing Brush - - - „ mending a pair of Bellows „ a new Tea Kettle - - - „ mending the Crane and 3 Hooks - Fish 3 Washing Tubs tinning a large Pot and 4 Saucepans, » » » >» 5» a Goose and 2 Ducks a Turkey - - the Baker's Bill the Butcher's Bill 31b. of Sausages ... a peck of Oysters a peck of Onions . . - a new Fire-shovel and Tongs a large Stew-pan ... the Apothecary's Biil - a Load of Hay ... a Load of Straw - - - the Farrier's shoeing Whitefoot Curing Coachman's broken shin mending the Clock a new Jack-line - - - the Cook's Bill aTurbot .... a Dozen of large Eels a Dozen of Lemons a Firkin of Butter a Cheshrije Cheese, wt. 20lb„ at lOd. per lb. - - - - the Baker's Bill - a Quarter's Rent ... These sums of each week's expensca, viz., £l lOs. '^d.,.L7 I8s. 2d., &c.,a,re, at theend of each week, entered on the Cr. side of the Cash Book 'By House Expenses;' or, * By Profit Rud Loss for House Expenses.' £ S. d. 1 6 7 6 6 tt 2 6 9 4 8 6 6 19 8 6 1 6 1 6 O' 3, 0] 0, 6 1 O' 8 6 O' 8 6 3 10 1 iiO I 2 6 1 1 010 6 Oi 2 017 6 010 6 0.7 6 o! 1 6 1 '8 o'l6 8 1 1 6 10 8» d. — 718 10 2 2 811 — 15 5, 2 I 33 41 6 tl ol 1 i 10 iiUBSlDIART B00I6. CASH BOOK. 87, ' ■ The Caalj Book is kept precisely on the 8ame principles with the Cash Account in the Leger ; it ia headed, on that account Cash Dr., Contra Cr. the tiUe, Cash, meaning myself in regard to Cash. Whatever Cash ii received, therefore, is entered on the Dr. side j and whatever ii paid out, is entered on the Cr, side. 88 iOOK-KFEPI.VO. 1 t- EXAMPLK OF 1832 Mar. 1 1 2 \ 6 2 8 2 17 2 20 2 25 2 1832 Jfpl. 3 10 12 14 20 Caah^ 'i>r To Stock brought from (ho last monlh To Sir Hubert Johnson, rcceiTcil in full To Ship James, rnocivfd in full of Jchn llcrliert for one Kith - - - To Ship JamcK, rcccivr d ri Capt. John Smith in full for one Kilh To William liukcr, Ksq., nceivcd in part . - . . - To Canary, for one Pipe sold to VVillinm Dcllo To Sundry AccoiiniM - - - Cash, Dr. 30 4 To Balance brought from the last month . . - . - To Ship James, received of William Evans, in full for one I Gth To Ship James, received of James Jack- son, in full for cnc 16th To Ship James, received of Thomas Jones, in full for one 16th To John Hammond, Esq., received in full To William Warner, received in full - 18099 3 30 6 125 «. d. 125 125 30 174 4 2i I I 00 t 00 00 00 00 8708 4 2i - 6989 6 125 126 125 100 34 00 749815 71 00 7J ! aUBSIDIARr BOOKR. 8^ A CASH ROOK. oa I 00 I ? 00 00 00 00 7f 1832 Mar. 4' 1 9! 2 23 2 26 27' 2| 28 2 30 3; Per Contra, Cr. 31 3 1832 Jlpril3 3 By Ship Jntnrs, paM in pnrf. By Jiimcs Allen, pniit in full • By Thoinna I'rcHlun, Knq., pnM in piirt ------ By Ship JamcM, paid Thomas Youn); in full for Joiners' Work By Ship .liiMicH, paid T. Pirrcc in full for lt>Kgi"« By Ship Jiinics, paid D. Smith in full fir Hcpairs - - . - - By Ship Jutnes, paid Nathaniel Wcstal in fidl for Painting ... By House Kxpen8■ . • In tranferririj^ ihr. cntric'^ of this book into Um* L''K<*r, flio Bum of ojuli iiioiitli only is cnlortul nt ihc cnove directed, I must turn to tho account of Sir nnotjE7498 15s. 2^d. but deducting the balance, it is only £509 7s. Od. So the Cr. side entries are transferred before the two sides are compared, an 1 the balance entered. ::i >•! of the Hook ifl received lie Cusli \iy sun- or, only i»ai1i(U- enter- »N, a Her Dr. mill turn to 1 f»nt the hook «>1' IIoufjo-ExpcnfiOM, ind is treated in the mtne manf.er. INVOlCl!: BOOK, OUTWARD AND INWARD. The Invoieo Rook Outward is \iok, in which is pasted llie original Invoices with the charges added to them. Many Book-keepers enter into the Journal from these books ; other Book-kepers prefe? copy Mg Uie Invoices into an Invoice book. THE SALES' BOOK. In extensive retail ti-ades, the Sales' book serves u purpose analogous to thatofiho Cash book. It keeps the detnils of sales which are entered in the Le^cr in sums at state. Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 ^.^^' o 9ft BOOK-KEEPING. of the quantity, and the sales of the goods for each con- signment, are kept in the Sales^ Book, and it is from this book that the consigner is furnished with an account of the goods with which he has intrusted his agent. BOOKS OF BILLS RECEIVABLE AND BILLS PAYABLE. These books contain in columns, an account of every Bill received or paid away, stating the date, the drawer the acceptor, the sum, the time due, &c. THE LETTER BOOK. This book contains copies of all letters sent out. These copies are now very generally taken by a copying machine* Letters inward should be kept and arranged alphabetically, by the names of the writers, so that it is less necessary to keep copies of them. ll'l-V! POCKET BOOK. When a Merchant transacts businesi from home, or when he attends markets, fairs, Sec, he should keep a Pocket-book, in which to mark down every transaction, so that when he returns he may be able accurately to enter his transactions in his principal books. I con- m this of the ILLS py Bill T the hese hine. cally, iry to 5, or ep a itioti, 3nter GENERAL OBSERVATIONS. The Pupil who has carefully posted and balanced the foregoing seta of Book-keeping transactions, must have learned that the chief skill in this art lies in a judicious selection of accounts ; for after the accounts are deter- mined upon, the posting and balancing of them are mere matters of routine. Every diversity of trade or manufac- ture will necessarily have some modifications peculiar to itself ; but a steady adherence to a few general principles, such as the following, will conduct a Book-keeper, through the intricacies of any description of business transaction?. An account must be opened for every species of pro- perty or adventure, the gain or loss on which is to be computed separately j such as goods of every kind, ships, houses, voyages, partnerships, in short, every form in which the merchant's property is embarked. When no advantage would be obtained by keeping a separate ac- count of gain or loss, on different kinds of goods, they must be classed under one head, as goods, merchandise, houses, &c. Every such account of property represents myself, or is my own account in regard to such property. Thus wheft Cash or any kind of goods is made Dr., it is I who am made Dr. When Cash is made Cr., it is I who am made Cr. .,. , An account must be opened with every person or com- pany with whom I have dealings on credit, on either side, for it is obvious that I cannot have a correct account of the state of my affairs, unless I know what I owe, or what others owe to me. Every kind of property that comes into my hands, M BOOK-KEEPING. SO as to become my own, must be entered on the Dr. nidi o( the account of that kind of property : and every kind of property that passes out of my hands, so as to cease to be mine, must be entered on the Cr. side of its own account. When property comes into my hands, but not so ai to become my own, as when goods ^are consigned to me, I do not receive them into my Leger, but keep an ac- count of them in a separate book, merely entering in my Leger what I pay out or receive on account of them. If such goods become my own, I then open an account for them, or enter them to some account already open. When goods'or any species of property goes out from me, still continuing to be mine, as when I send out goods on consign- ment, I do not enter it to the person's account to whom it is intrusted, but to the voyage, adventure, consignment, See. to which it may be transferred. Every description of outlay for which no kind of pro- perty is received in return, or, of income, for which no kind of property is exchanged, the amount of which, when the books are to be balanced, it is requisite to know, must have an account opened for it, such as interest of money borrowed or lent, discount of bills, rent, wages, house-expenses, gifts, legacies, &c. But if the general ac- count only of such outlays and incomes is required, they may be placed at once to the Dr. or Cr. of the Profit and Loss Account. If any of them be kept separately, the balance must be placed to the Dr. or Cr. of Profit and Loss Account, as all such Accounts of outlays or incomes are merely subdivisions or branches of the Profit and Loss Account. Every transaction must be entered on two accounts, fhe Dr. side of the one, and the Cr, side of the other • GENERAL OBSERVATIONS. 95 and con scqutntly^e very sum posted in one account, must either be entered on the opposite uid* of another account, or divided among several other accounts. This nile is .so absolute and universal, that at any stage of the progress of keeping the books, the sum of all the Cr. sides must be equal to the sum of all the Dr. sides. The ascertaining of this is called a trial balance, which may be made at any time. Bills are treated like any other property, even Bills Pay- able ; that is, my own engagements to pay money put into the form of a bill, and given out of my hands, are so treated, and accounts are opened for Pills Receivable or Bills Pay- able,'on the same priaciples on which an account is opened for Cash, or any species of goods. If a merchant in balancing his books would obtain a just view of the state of his affairs, he must not be satisfied with valuing his goods on hand at the price which they cost him ; nor the debts due to him, as if the amount of them were already in his hands, in cash, hut must make such deductions as the following : — 1 . For detarioration of goods by being kept, if any. This in any description of fancy goods must be considerable. 2. For the expenses of collecting debts. 3. For interest of money on debts not yet due, including Bills Receivable. 4. For the probable amount of bad debts. These deductions should be placed on the Dr. side of the Profit aud Loss Account; so as to diminish the profits by so much. 96 •OOK-KEEPINO. ON CLOiING THE DIFFERENT KINDS OF ACCOUNTf. 1. All personal acccounts are closed by the Balance Account. 2. All real accounts except the Cash are closed by a double balance. First the quantity of any kind of goods remaining on hand, or properly remaining in any voyage, adventure, consignment, constitutes the balance of the account opened for that description of property. It is, therefore, entered to the Cr. of the account, * By Balance.' Secondly, after this balance is entered the difference between the sums i year. To the inventory is annexed tlio state of his debts, and then follows an accouut of all ihesurn^ that have been expended, and a plain narration of all the operntions that have been carried on in each field. This narrative my \Hi onteredjdaily,weokly, or monthly, or at any jieriod tliat may be found most convenient ; taking care that a particular account Ije kept, cither by the foreman or some other person, of all the operations during the lime that elapses between the entries. In the annexed Rvstem, the entry is supposed to be made every four months, merely for the purpose of condensing the subject into a smaller compass. The dung of the live .stock in general, isexpressed in loads, and the labour of the working stock is converted into yokings—a yoking being understood to signify the labour of one man and a pair of horses fo; 4^ hours. The loads and yokings are entered in columns allotted for them ; but the money columns opposite arc left blank ; the value of the yokings not being fixed till the end of the year. The fodder given topive Stock is estimated by acres: reckoning, in this scheme, five acres of straw equal to ono acre of full hay or turnip crop. The transactions recorded in the Day book are to be journalized as in the former sets, or thoy may be trans- ferred at once*to the Leger, without a Journal intervening. In transferring the inventory to the Leger, an Account i« opened in the I egcr for Capital ; the title Capital VARMINO ACCOUNTS. f*^ •landing in place of the title Stock in llie former rtctw, making it debtor to A. B. for tliesum due him, and crcu«ly boon enter- ed, but not valued. Now the value of this produce may be found in this way : — 'thm produce not having been sold, but consumed upon your own cattle, these rnttio will ap- pear either to have yieldetl profit or not, according to the value put upon the food consumed by them. It will Ijc better, therefore, on this account, to let the value of the fbod consumed, and the increased value of the Stock pro- duced by it, exactly balance one another, so as, to show no profit or loss on either side. This will he effected by ascertainingthe difference between the two sides of the Ac- count, andjhen dividing that difference by the number of acres of produce used, which will furnish a standard for valuing the produce of the whole farm. The difference in this case is £177 1 5s., which divided by 19 j acres, makes the value of the acre of produce £9. Estimate, now at that price, the acres of produce formerly entered, and enter the value in the money column, and the two sides of that Account will be equal. Proceed now to the Aoi-ount of Working Stock. Estimate the acres of produce consumed by this Stock, at £9, because it has been found that it would have yielded that value in feeding cattle, as Feeding Stock. The present value of this kind of Stock on hand must now be found and entered on the Cr. ^i(le, * By Balance.' In the present case, the value is fixed ot £4-47 Is. But this Stock has yielded manun^, ahendy entered in loads, and manure has also been valued at f)s. per load. Calculate, therefore, ihe value of the loads at this price. VAHMINO ACCOUNT!!. 101 Ni()o of thii »Ulo, the cx- produce of quantity of boon entor- roduco ma? ig boon sold, ttio will np« ■dint? to the It will be alue of thu 5 Stock pro- OS, to show eflbcted by s of the Ac- number of andard for 3 difference 19 j acres, Estimate, ly entered, id the two ing Slock, bw Slock, ould have ling Stock, land must Balance.* ^ Is. But ntered in per load, this price. and enter it in the inont'y column. This Slock ha»» oK^fl yielded labour on the dilFercnt fieUlH of the farm. This moy be fi)und on the ianio principle on which the value of the ncrcs of fodder waa foiuid, namely, by finding the dinbriMicu between the two sides of thirf Account, and dividing it by the nundior of yokings : that is, in thin cn»e, £391 18s., the diirerence divided by 1212, the numlierof yoking: <. The price will thus be found to be 6h. 6d., at which I .ilo the yoking^ in the other Accounts are to hv valu- ed. Calcuhile the yokings in the dilFerent entries in this Account at this price ; enter the amount in the money columns ; after which tho two sides of the Account will l)c found to be equal. The Working and Feeding Stock Accounts being thus closed, Nos. 1, 2, 3, 8cc., ore to be made Cr. ♦ By Balance,* for whatever quantity of their respective produce may remain on hand, estimated at market price. Returning again to No. 1, the amount of the Cr. »ide, or total produce, is found to be d664 1 , while the Dr. side, or expenses, is only J6196 Is. 7J., leaving a profit of £'^ii 18s. ^Jd., which is, therefore as in the former sets, entered on the Dr. side of the Account, • To Profit and Loss.' An Account is then opened for Profit and Loss, and this sum carried to the Cr. side of it, * By No. 1.' fn No. 2, the expense is found to be jG4-90 ICs. 8d., while the return is nothing. This sum, therefore, must be entered on the Cr. side, * By Profit and Loss,' and carried to the Dr. side of that Account. All the other Accounts being closed in the sanie way, it is obvious that the Dr. side of the Profit and Loss Account will con- tain all the losses, and the Cr. side all the gains ; the difference in the following scheme is £18 16s. 8Jd. profit, and must be carried to the credit side or Capital, 101 lOOK-KCSriNU. 'S •a xUn iiicrouMO it hat received during the yeor. A RHlantn Account '\a then to Itc o|M)ncii, the balance of iti<7 diHui'ont Accuiinti <*ullccted in it, and tlio Capital Ac- count cltMed UN in lornier sets. It i», porliapit, unnocoioury to ol)!»ci'vc, that tlio sum» •tauiti against HouMohoId Ex[>enm>ri oro, in reality, the ' >riNiuoi) ot' tho farm, for which the houHchold linH made »o return. Thoy pre, thoreloie, to Ije considered aa part of thr profit, which thus aniounld to £16% IGx. 8|d. tiad tiie Capital embarked in the concern (X 1,093 19^ 6d.) l^een Uid out at intercHt, at five i)cr cent., it would have fielded, a(\er deducting income tax, £4tS 4s. Gd., leaving n clear profit of j6il8 I2n. 2Jd., for risk and peraonal trouble in farming. It i« unnecessary to say any thing further with regard to tlie inner coluinm made use of in the following specimen : every furmer may adopt or reject them, or employ more Ok' fewer, according to his own views of the subject, or according to the particulars he wishes to record. In our fii^t sketch, ^e had introduced several others, but on iilrcond thoughts laid Ihom aside. rAH.MlNO ACCOU^r». 10.1 WASTi: HOOK. Bank lUa»l Farm Crop, 1832- O'op. r»V/'. . Conitnlt. Acr's No. 1. — 20 Wh««t and Potato OtU J. — 22 Fallow .... 3. '- 19 Oala and (ir AM 4. — 14 OrtM .... b. — to Btrloy and Oata 6. — 15 Turnip, Potatoca, ai;d Paaa 7. — 14 Paaturt 120 fUnt. £ a. d. 60 50 47 10 31 10 40 30 10 £U80 f Farm of Bank H«ad,frorn Whitiundoy, 1832, to Whitiunday, 1833. I Inventory from 1 6lli May, 1 832. Caah on hund ... VVorkins Slock, riz. — 3 pairofhoraea, at £72 1 Saddle do. „ 40 4 Carta „ 1 1 5 Plougha ., B. 8a. Ilarrowa and Roller Harncas . - . . - Other Implementa 4 Hurso Threshing Machine and Framea . . . - 100 Sacks .... Feeding Stock, viz. — 6 Cows at je7 - 2 Calves at JCI 10s. 5 do. one year old, at £3 do. two year old, at £5. 5a. S do. three year old, at £9 I owe A. B. borrowed from Wm on 16th 832. I £ i.\d - m 453 i\ 6 X21C ' 40 1 1 44 f 17 I • 5 60 1 - 10 1 1 i 66 1 - 26 472 42 1 1 1 - 3 ( 16 I - 36 15 t 72 0, 168 15 1 10931 19 6 16th » ■ 1 100 104. BOOK-KEEPING. Watte Book. Operations from 16lh May, 1832, to i t9lh Sept., 1832. No. 1. jPaid cutting 15 acres Whcnt iWork of men and horses, carting, I threshing, be. - - « No. 2, Paid for draining - - - - Laid on dung from Working Stock load. yokt. Fed S. Work of men and horses From 19lh Sept., 1832, to 30th Jan., 1833. Sold 4 oxen, 3 year old} ati;i3 10s. - - - i:54 Sold 3 young cows at I £14 - - - 42 Bought 3^ ditto, 2 year atiJe - Paid Ddiry-maid 1 year's wases to Martinmas £18 I 4 10 Wk. S. Paid men-stiv tints* and boys* wa^jes I to Martinmas - - :r No. 1 . Paid cutting 1 35 threaves of Oats, at 3id. - - -£1194j Expenses delivering ! Wheat - - - 15 9 iWork of men and horses ploughing' i for peas, &c. . - - iSold 60 boles of Wheat, at £2 14s. - iSowed 18 boles in No. 2^ at £3 - 70 from Feeding Stock 10 {Work of men and horses ploughing,' j carting dung, &c. - • | - No. 4. [Paid cutting and making 10 acres Hay, - Work of men and horses carting Grkss and Hay - - - No. 5. Paid Grass seeds ... No. 6. Paid Turnip seed. Labourers, Sic. - Laid on dung of Working Stock - 17 Feeding Stock 53 23 420 20 50 117 £ s. 811 1216 15 4 S6 22 10 53 1 (I. 8 6 6 215U 162 • 54 >k$. 23 20 20] £ s. I 8li 1216 8 15 4 >0l 6 6 5>6 2210 53 1 215U 162 • 54 FARMING ACCOUNTS. Waste Book, i05 No. 2. No. 3. Work of men and horses ploughing^ carting, &c. Sold Oats, 10 boles, at 308. Servants, for meal, 20 boles, at 30s. - £30 Given to horses, 72}- at 30s. - - 108 15 No. 4. No. 5. No- 6. Reckon the Straw of 16 acres, equal '*"*^" y***' to full crop of 3 - - - I Laid up littor for Working Stock,' I equal to 2 full acres - - I I for Feeding Stock, equal to 1 acre - - - - Paid Lime, 600 boles, at 5s. Work of men and horses sowing Wheat, &c. - - - - Paid cutting 495 threaves ofOats, at4d. . - - JCS 5 150 Paid Labourers - 1 15 Drove dung of Working Stock for fallow . - - Feeding ditto Taken for household, 15 at 308. • Straw given to Feeding btock, equal to 4 acres Hay and Grass given to Working Stock, 12| acres Second cutting of 10 acres. Feeding Stock 1| aures Paid Labourers and ex- pense deliveriug Bar- ley - - Cutting 230 threaves b. at 4id. Cutting 162 threaves Oats, at 4d> *. d. 10 0, £2 4 4 6 2 14 Work of men and horses threshing,&c. Sold Barley, 44 boles, at 41s. - Used for household, 2, at 4l8. Straw given to Feeding Stock, equal to 2 acres From 19th '- ept., 1832, to 30th Jan., 1838, continued. Paid reaping Peas £ 2 15 13816 2210 38 9 4 i 90 4 4 2 2i 5 9 106 BOOK-KEEPING. Waste Book. No. 7. House. Work by men and^oriea about peas, turnipsi, 8cc. Peas-straw, giTen to horses, equal to . 1 acre Potatoes for ditto 1| do. Potatoes for household Potatoes for seed in No. 3 . Turnips given to Feed- ing Stock Pastured by Feeding Stock, equal to 2^ acres 2i acres 2} acres 6 acres 3ido. 9} acres From 30th January to 10th May, 1833. Paid Personal and Household £z- I penses . No.1,2, Paid Rent for Crop, 3,4,5,' 1832 0, Sc 7, Paid Income tax on do. at 5 per Cent. X280 14 \Tk. S. Paid assessed taxes iPaid Smith's account Paid Carpenter's do. Paid Saddler's do. Jf9 10 15 10 8 6 5 6 load.yok$. 431 No. 1. Sowed 25 boles of Peas, from No. 6 at 4l3. .... ' Work by men and horses ' Sold 22i boles Oats, at 40s, Sowed 16 ditto, in No. 4, at 40s. . Straw given to Feeding Stock, equal to 1 acre ^ . . . 77 £ 9. d. 41 3.0 294 38 11 51 5 I i 45 32 fARMiNG ACCOUNTS. 107 Wattt Book. t*J £ I 1. d. 4c No. 3. No. 4. No. 5. No. 6. No. 7. Applied dung from Working Stuck . from Feeding Stock Work by men and horaes Ditto ditto Ditto ditto Sowed 12 boles of Barley in No. 6, at 42s. Gave Straw to Working Stock, equal to I an acre ■ Feeding Stock, equal to J of an acre .... Applied dung from Working Stock . from Feeding Stock . Work of men and horses Peas given to horses, 7 boles, at 41 s Bought Oats, for seed, 15 boles, at 3l8. Work of men and horses load. 14 42 lb 35 yoka. £ $. 70 1 •* 25 4 63 14 7 67 23 5 d. 41 3 294 38 11 1 51 5 45 32 In the Balance Account, the main object of which is, to afford the means of checking the Leger, and detecting errors, all the different articles of Capital are collected previous to their being carried to Capital or a new Inven- tory. If the concern is still to go on, the Inventory for next year would proceed thus : — Tnventory taken 10th May, 1833. Gash on hand Working Slock, viz. — 3 pair of horses, &c. &c. Feeding Stock, viz. — 6 Cows, &c. &c. No. 1, Wheat in hand No. 5, Oats in hand 1 owe A. B. borrowed of him, interest paid £170 447 I 174 312 68, jeii72 100 12 1 2i 1 1 1 1 15 0, 8 16 2i lOd COBCPfiNDIVM OP H P > ii A SYNOPSIS OB COMPENDIUM or .. . .1 MERCHANTS' ACCOUNTS : Containing Particular Rules for the true Stating of Debtor and Creditor, in all Cases that can happen in the whole course of a Merchant's Dealing. The Accounts of Merchants are of three sorts, riz. :— I. Proper; wherein the Merchant trades by and for himself; Trhich is either Domestic, i. e. Inland and at Home; or Foreign, T. e. Abroad. II. Factorage; wherein the Merchant acts as Factor on Commission, for one that employs him; and this, also, in either Domestic or Foreign. III. In Company ; wherein two or more Merchants join together in trade, and have each a share of the gain, or bear a share of the ioss, in proportion to his share in the Stock; as is taught ia the rules of Fellowship. I. OF PROPER ACCOUNTS. I. DOMESTIC. In Receiving and Paying MoMi/, Case 1. When an Inventory is taken (£ the Ready Money, Ctoodis, Voyages, and Debts, belonging or owing to me f Rule. Dr. those several parcels and parties, Qr. StocI: or Principal. MERCHANTS' ACCOUNTS. 109 Cue 2. When an Inventory is taken of the Debts owing by me ; Rule. Dr. Stock or Capital, Cr. the several parties to Mrbom the same are due. Case 3. When money is received of one-man for the use of another, or for his own use ; Rule. Dr. Cash, Cr. the person for whoso use it is received. The same when money received for Goods formerly sold. Cose 4. When money is paid to one man for the use of another, or for his own use ; Rule. Dr. the person for whose use use it Is paid, Cr. Cash. The same when money is paid for Goods formerly bought.^ Case 6. When money is lent ; Rule. Dr. the borrower for the principal, Cr. Cash. Case 6. When money is borrowed ; Rule. Dr. Cash, Cr. the lender for the principal. Case 7. When interest is received for money lent ; Rule. Dr. Cash, Cr. Profit and Loss.. Case 8. When Interest is become due to me, and booked before received ; Rule. Dr. the person who owes it, Cr. Profit and Loss. Case 9. When Interest is paid for money borrowed ; Rule. Dr. Profit and Loss, Cr. Cash. Case 10. When Interest is become due from me to another, and booked before paid ; Rule. Dr. Profit and Loss, Cr. the person to whom it is due. Case 1 1 . When Charges are paid on Goods in my own posseMion } Rule. Dr. those Goods, Cr. Cash. .; Case 12. When Chargfis are paid on petty disbursements in Trade ; , Rule. Dr. Charges of Merchandise, Cr. Cash. Case 13. When Cargcs are paid on House-keeping, and all ex- penses thereunto belonging j. Rule. Dr. Profit and Loss or House-Expenses, Cr. Cash. CaMl4. When India Stock, Bank Stock, SoyfhSsa Stock, or Annuity is bought ; Rule. Dr. fuch Stock or Annuity, Cr. Cash. The Mune i£ 110 COMPENDIUM or fi iherft be a call of £5, be. per cent upon my ihare in any capital Stock. Case 15. When Interest is become due to me on such Stock or Annuity, and booked before received : Rule. Dr. the Stock or Annuity, Cr. Profit and Loss. Cos 16. When India Stock, Bank Stock,^ South Sea Stock or Annuity is sold ; Rule. Dr. Cash, Cr. such Stock or Annuity. Case 17. When my Debtor compounds with me, and I receire part of the debt for the whole ) Rule. Cr. the person who compounds for the whole debt, by Cash for what I recciTC, and by Profit and Loss for what I lose. Case 18. When I compound with ray Creditor, and pay him part of the debt for the whole ; Rule. Dr. the person who receives, To Cash for what I pay, and to Profit and Loss for what is abated. Case 19. When a Legacy is bequeathed to me ; Rule. Dr. the Eiecutor, Cr. Profit and Loss. Case 20. When a Legacy is received ; Rule. Dr. Cash, Cr. the Executor. If received before entered, Dr. Cash, Cr. Profit and Loss. Case 21 . When I receive a Leagcy for the use of another, myself being the Executor ; Rule. Dr. Cash, Cr. the Legatee. ' ' s Case 22. When I pay a Legacy for the use of another, myself being Executor ; Rule. Dr. the Legatee, Cr. Cash. f Case 23. When I receive money by Assignment ; ' - >' Rule. Dr. Gash, Cr. the Assigner. Case 24. When I give an Assignment, or Order, or Bill, on my Debtor to my Creditor ; Rale. Dr. my Creditor, Cr. my Debtor. Case 25. When I pay money to another by the Assignment or or* der oTmy Creditor ;^ Rule. Dr. my Creditor, Cr.Xash. ; •• ini ,,- Cas* 26. When I receive a Promissory Note in payment and book it : ■fiUi MEBCHAMT8* ACCOUNTS. Ill I any capital uch Stock or r I. iea Stock or receifc part ebt, by Caah le. pay him part I I pay, and re entered, her, myself t r, myself H) OR my •nt Of or- ient and Rule. Dr. Bills Receivable; Cr. the person of whom you receive it in payment. Case 27. When I deliver the said note in payment afterwards j Rule. Dr. to person who receives it, Cr. Bills Receivable. Case 28. When I pay charges on House-keeping, and all the expenses thereunto belonging } Rule. Dr. Profit and Loss, Cr. Cash. In Buying and Selling Goodt* Case 29. When I buy goods for present money ; • Rule. Dr. the Goods bought, Cr. Cash. Case 30. When I buy goods on trust ; Rule. Dr. the Goods, Cr. the Seller. The same when paymellt^ are made by me, at several times, only mentioning in the Journal the several times uf payment. The same also when goods are taken in lieu of a debt, either in part or in the whole. Case 31. When I require an abatement on goods bought on trust, after they are booked, on the account of defect j Rule. Dr. the Seller for the abatement, Cn the Goods bought. If the account of Goods be clo8ed,Dr. the Seller, Cr. Profit and Lom. Case 32. When I buy goods for part ready money, and part trust ; Rule. Dr. the Goods, Cr. the Seller for the whole. Then Dr. the Seller for what I pay, Cr. Cash for th« same sum. Or, Dr. the Goods to cash for what I pay, and to the seller for what remains unpaid. Case 33. When I buy goods for part ready money, part trust, and part bills ; Rule. Dr. the Goods to cash for what I pay, to bills receivable, and to the seller for the rest. Case 34. When I sell goods for present money ; Rule. Dr. Cash to the goods. Case 35. When I sell goods on trust; Rule. Dr. the Buyer to the goods. The same when payments are made to me, at several times, only mentioning iu the Journal, the several times of payon^nt. The same also when goods are sold in lieu of a debt, either in part or in the whole. Case 36. When I make an abatement on goods sold on trust, after they are booHied, on the account of defect ; 112 COlVfPENDIUM or Rule. Dr. th« Goods for the abatement to the bujer. If the account* of goods be cloecd, Dr. Proflt and I.o«i to the buyer. Case 37. When I sell goods for part ready money, and part on credit ; Rule. Dr. the Buyer for the whole of (he goods. Then Dr. Cash for what I receive to the buyer. Or, Dr. Sundries to the goods, cash for the money received, the buyer for n-hat remains unpaid. Case 38. When I sell goods for part ready money, pari trust, and part bills receivable ; Rule. Cr. the Goods by cash for what is rccciTcd, by bills receivable) and by tlte buyer for the rest. Case 39. When I buy several sorts of goods for ready money ; Rule. Dt*. each of thoin for its redpective value to Cash. Case 40. When I buy several sorts of goods upon trust} Rule. Dr. each of them lor its respective value, Cr. the Seller fbr the whole* Case 41. When I sell several sorts of goods for ready money} Rule Dr. Cash to sundries for the whole value, Cr. each sort for its respective sum. Case 42. When 1 sell several sorts of goods on trust; Rule. Dr. the Buyer to sundries for the whole value, Cr. each' sort for its respective sum. Case 43. When I want rebate to be made on the present pay-^ ment of money, for goods bought upon credit ; Rule. Dr. the Seller to sundries for the whole suoi, Cr. Cash- for the sum paid, Cr. Profit and Loss for the rebate. Note->This it ftuppnsutl to happrn a day or two after the Roods are bought and booked, Case 44. When 1 make rebate on the present receiving of money for goods sold upon trust; Rule. Dr. Cash for the sum received. Dr. Profit and Loss for the sum rebated. Credit tlie Buyer by sundries for the whole sum. Note— This is supposed to happen a day or two after the goods are sold and booked. Case 45. When I buy goods of a debtor, for a debt due to me, their value amounting to more than the debt, and the overplus is paid^ hack io money presently j MCRCHANTI* ACCOUNTS 113 tlule. Dr. Ihe Goodf to luiidrici Tor the whole lum, Cr. the Seller for 10 much at hia debi was, Cr. Cash for the orerplua. Note— iricvi-rni inrUnrgoodilind hern bounhttand t)inovcrplUMri'turn« cil by me, thon, llr«t) Dr. uucli aurt for iu reiptclive valuts, Cr. lh« Buller by auiidricH for their whole valiir { tccondly Dr. tho Silltir Tor the ovurplui paid back , Cr. Cuh for ilic laniu ■urn. Caae 46* When I sell goods to a creditor, for a debt due to hinij their raluo amounting to more than the debt, and the overplus is re- turned to me in money presently ) Rule. Dr. the Buyer for so much as was owing to him, Dr. Cash for the OTorplus receired, Cr. the Goods sold by sundries for the whole sum. ' « Notf!— •IfHuvdinl nortHufgooiUhnd b«en iioId,and tin* overplus r» turned to ine, then, flmt Dr. the Buyer to nundriet for their whole vulue, Cr. each Hort for ilit rexpective value j aecondly, Dr. Gush forao luuch av ia received, and Cr. the Buyer, lor the aiitnc auin« Barter. Case 47. When I give one eort of goods for another sort, of eqnal value ', Rule. Dr. tho Goods received, Cr. the Goods delivered Case 48. When I give one sortof goods for another sort, of greater or less value ; Rule. First, Dr. the Person who receives my goods, Cr. those Goods. Secondly, Dr. the Goods received by me, Cr. the Person who delivers them. Case 49. When I give one sort of goods for several other sorts of equal value ; Rule. Dr. each particular sort of Goods received for its respective value, Cr. the Goods delivered by sundries for the whole value. Case 50. When I give one sort of goods for several other sorts tf greater or less value ,* Rule. First, Dr. each particular sort of Gjods received for ita respective value, as above, Cr. the Seller by sundries for the whole . Secondly, Dr. the same person, as Buyer, and Cr. the Goods which he has bought. Case 51. When I give several sorts cf goods for one sort of equal value ; Rule Dr. the Goods recivcd to sundries for their value, Cr. each partioular sort of Goods delivered, for its respective value, ^ Hi COMi'LNDlUM or C«i« 52. When I five le vera! •orUofgouda Tor one sort of greater or leM tmIuc ) Rule. First, Dr. (he Prraoti to tvhorn the Goods arc delivered to lundricii, for their wholu vulu«, Cr. lliosc Ujuds teverally for their rtfapcctire lumi. Secondly, Dr. the (!oo
  • .Tho aninc for a ahlp flltcd out, in which I have a ahure. Caao 61. When I buy a ahip for pnrt ready moMy andptit IfUit; _ Rule. Dr. the Ship to luudries, Cr. Cath for Uie money paid, Cr. the Seller fur ihc reet Nutu*«Thii i» tht! Maine u<« Cam J?, funKoini;, wliich tot. Case 62. When I sell a ship for ready money ; Rule. Dr. Ca»h, Cr. Iho Ship. Caae 63. When I sell a ship for part ready money and part trust ; Rule. Dr. Cash for the money received, Dr' the Buyer for what remains due^ Cr. the Ship by sundries for the whole. Nutc»ThiH iii (liu itamv tt* Cast) i>7, forfgoint;, which sef4 •^ .- •• Freight. Case 64. When I receive freight ; Rule. Dr. Cash, Cr. the Ship. Case 65. When I pay freight ; Rulo. Dr. the particular Voyage, Cr. Cash. Legacy. Caso 60. When I receive a legacy in houses, lands, or goods ; Rule. Dr. these Houses, Lands, or Goods, Cr. Profit and Lom. Bills. Case 67. When I buy a bill of another for ready money, and receive discount j Rule. Dr. Bills Receivable, Cr. Cash for the sum paid, Cr. Profit and Loss for the discount. Case 68. When I sell a bill for ready money, ond give discount j Rule. Dr. Cash for the sura received, Dr. Profit and Loss for the discount, Cr. Bills Receivable by sundries^ for the whole sudq. 116 coMPKNuiuM or II. rOHRIUN. Cmc 1. When good* are ■cnl to %t% fur mjr own tccouiit, which were fDrmcrly entered in my booka ( Rule. Dr. Voyage to consigned to , Cr. the Uocda. CaM 'i. When goods nrr irnt to sm fur my own account, which ivcre bought for preirnt money, with nil cliargi* paid thereon } Kule. Dr. Voyngv to — — consigiu-d to - ■— , Cr. Caili. Case 3. Whcit goods ore sent to tea lor my own account, which were bought on trust \ llulc. Dr. Voyage to connigncd to — — , Cr. the Heller. Cose 4. When goods are sent to sea fur my factor^s account, which were formerly entered in my boolis } Rule. Dr. Factor's Account Current, Cr. the Goods. Case ft. Wticn goods are sent to sea for my factor's account^ which were bought for present money, with all charges paid thereon } Rule. Dr. the Factor's Account, Cr. Cash. Case 6. When goods arc sent to tea for my factor's account, which were bought on trust ; Hulc. Dr. Factor's Account Current, Cr. tho Seller. Prtmium of Inturance. Case 7. When my goods are insured by another person, and I pay the premium presently ; Rule. Dr. Voyage to — — consigned to , Cr. Cash. Case 8. When my goods are insured by another person, and 1 do not pay the premium presently \ Rule. Dr. Voyage to consigned to , Cr. the Insurer. Case 9. When I pay tlic premium, upon advice that my goods ure safely arrived ; Hulc. Dr. the Insurer, Cr. Cash. Case 10. When the goods of another person arc insured by me, and I receive the premium presently ; Rule. Dr. Cash, Cr. Insurance. ' Case 11. When tlie goods of another person arc insured by me, and I do not receive the premium presently ^ MERCIIANTI* AGOOUnri. 117 rfouiil, whicli l»»c (iocdi. rcourU, whkh r'aah. count, which he 8t account, r»OR, and I aah. rson, and I B Iniurer. I my good* ired by mc, red by me, Rut«. Dr. the Prraon ivho4«i xdoiU I Kav^; ifl«ur«inc« for th« insur^- aneoof gouda rurmcrly aont to aoii ( 1. 1. if I receife lh-The same fur bad debts, chnrgca of remittance, Sic. MERCHANTS' ACCOUNTS. 119 Caac. 28. When gooda of mine, in the handa of one factor, are aent to another factor ; Rule. Dr. Voyage to — — [the place of the latter or recelring factor,] Cr. the former or sending Factor. Caac 29. When I receive goods in return from my factor; Rule. Dr. those Goods, Cr. the Factor's Account Current, for prime coat and charges, aa per invoice, by double columns, viz., for the foreign money and the sterling. Case 30. When I pay charges on the above goods ; Rule. Dr. those Goods, Cr. Cash. Money between Me and my Factor. Case 31. When I draw bills of exchange upon my factor, and receive the contents presently j Rule. Dr. Cash, Cr. the Factor's Account Current. Case 32. When I draw bills of exchange upon my factor, and get them accepted, but not received ; Rule. Dr. Bills Receivable, Cr. the Factor's Account Current. Case 33. When the contents of such accepted bills are received l)y me some time afterwards ; Rule. Dr. Cash, Cr. Bills Receivable. Case 34. When my factor draws bills of exchange upon nie, for goods bought by him abroad, and I pay the contents presently ; Rule. Dr. the Drawer, Cr. Cash. Case 35. When I accept the bills, as above, but do not pay tl*em presently j Rule. Dr. tlie Drawer, Cr. Bills Payable. Case 36. \Vhen 1 pay those accepted bills afterwards ; Rule. Dr. Bills Payable, Cr. Cash. Case 37. When I remit money to my factor, for goony,) Ci'. Cash. Case 2. When goods in company are bought by me on trust j Rule. Dr. those Goods for the cost and charges, (if there be any,) Cr. the Seller. . .p- i i i r i .> i> merchants' accounts. 123 I Cane 3. AVIien goods m conipnny arc .soltl by me fur ready money ; Rule Dr. Caeh, Cr. (.Joods in Company. Case 4. When gccds in company arc sold by me on trust ; Rule. Dr. the Buyer, Cr. 'iooda in Company, Cr. his Account Current. Case 5. When goods in company arc sold to myself ; Rule. Dr. those Uoods for proper account, Cr. Goods in Company. Case (i. When goods in company arc sold to my partner } Rule. Dr. his Account Current, Cr. Goods in Company, Cr. his Account Current. R Case 7. When goods in company arc sold by mc for part ready money and part trust ; Rule. Cr. Cash for what is received, Dr. the Buyer for what remains due. Cr. Goods in Company by sundries for the full value. Case 8. When goods of my own arc brought into company j Rule. Dr. Goods in Company, Cr. Goods proper. I Case 9. When the whole is furnished by mc ; Rule. Dr. Goods in Company, Cr. the Seller, if bought on trust Cr. Cash, if bought for present money. , I Case 10. When goods of my partner are brought into company ; ' Rule. Dr. Goods in Company, Cr. Partner's Account. I Case 11. When the whole is furnished by my partner ; Rule. Dr. Goods in Company, Cr. Partner's Account Current for the whole. Case 12. When goods in company are all sold ; if there be gain ; Rule. Dr. the Goods in Company to sundries, Cr. Partner's Account for his share, Cr. Profit and Loss for my share. I Case 13. When goods in company are all sold } if there be lost ; Rule. Dr. Partner's Account for his share of the loss. Dr. Profit and Loss for'my share, Cr. the Goods in Company by sundries. : Case 14. When goods in company are sent over sea to be sold, I paying the charges ; n COMrTNmUM u¥ i I Uiili . Dr. V.)yau;c l-) in Company to suiidriiSj fii Uif uholf clnrgo, Cr. tioocis in romjir\ny fcr their vnlu(;,Cr. Cnsh Ibi iho (;harp;os. Case 16. When I hny goods for company account with roatly money, and ship them ofl", paying the charges of shipping ; Kulo. Dr. Voyage in Company for the whole charge, Or, C.asU for tiic same sum. Caso 16. When I buy goods fur company account on trust, and nhip them off before they arc entered in my Lcger, paying the charges of shipping; Rule. Dr. Voyago to • ■ in Company to sundries, for the wliolc charges, Cr. the Seller for the prime cost, Cr. Cash for the after-charges. Caso 17. When I receive goods from our factor for company ac- count, in return for goods sent and sold, with charges paid by me at the receipt thereof j Rule. Dr. Goods received in Company to sundries, for their prime cost and charges, Cr. Factor at for company account for the cost and charges, as per invoice, Cr. Cash for the charges paid »t their receipt. CasclS. When gooda are sent from my factor in one place, to our factor in another ; Rule. Dr. Voyogo to consigned to our factor, Cr. my Factor at his Account Current. Case 19. When g'^ds are sent by our factor in one place, to my factor in another place, in return for goods sold for company account ; Rule. Dr. Voyage to — — consigned to my factor at — — , Cr. our Factor at Case 20. When goods arc sold by our factor, as per his advice j Rule. Dr. Factor at his Account Current, Cr. Voyage to — — in Company. Caso 21. When I receive advice that my factor has afterwards made some abatements ; Rule. Dr. Voyage to ,Cr. Factor at — — his Account Current. Case 22. When I receive money of my partner for his share of goods formerly bought ; Rule. Dr. Cash, Cr. Partner's Account Current. Case 23. When money is remitted to me by our factor for goods sold ; MERrilANTS ACCOUNTS. 125 i'fljfi.i the Cnnh ibi tvilli roailjr Or. CanU rust, and le charji;c» s, for the sh for the ipany ac* by mc at icir prime nt for the i paid at place, to Cr. my advice j oyagc to erwards Current, hare of "■good* Rule. Dr. (/ash, Ci. Factor his Account Ourrciit. Case 2.5. When money rcmiltet) to mr by our factor, for good. sold, but payable at usance ; Rule. Dr. Bills Hcccivablo, Cr. Factor nt his Account Current. Case 25. When I pay money on si^ht of my partner's bill ; Rule. Dr. Partner's Account Current, Cr. Cash. Case 26. When I give to my creditor a bill on my partner, for his share of the goods in company ; Rule. Dr. the Receirer of the Bill, i. c, my Creditor, Cr. Partner't* Account Current. II. My Partner ketping the Account, and having the Ditposal oj the Goods. Case 1. When I pay my share in money ; Rule. Dr. the Company, Cr. Cash. Oase 2. When I furnish my share in goods ; Rule. Dr. the Company, Cr. the Goods. Case 3. When I furnish both my own and my partner's share ; Rule. Dr. the Company for my share. Dr. Partner's Account Current for his share, Cr. the Goods by sundries. Case 4. When my partner furnishes my share as well as his own ; Rule. Dr. the Company, Cr. Partner's Account Current for my share only. Case 5. When my partner sends mc an account of the sale of goods in company ; Rule . Dr. Partner's Account Current, Cr. the Company for my share of the net proceeds. Case 6. If there be gain on the above sale ; Rule. D**. the Company^ Cr. Profit and Loss. Case 7. If there be loss ; Rule. Dr. Profit and Loss, Cr. the Company. Case 8. When my partner draws on mc for my share of goods in company, and I pay the same presently ; Rule. Dr. Partner's Account Current, Cr. Cash. Case 9. When my partner draws on mc as above, at usance j Rule. Dr. Partner's Account Current, Cr. Bills Payable /' i^ VZii GENGRAU BALANgU. 7%« Qemrat Balance of the whole Ltgtr, in ordtr to Tfar^fftr th* tame into Ntw Booki. ObacrT. 1 . All accounts arc balanced either by Bftlanee or by Profit and Loas ; except Accounts in Company, which are balanced by the Goods in Partnership for my partner's gain, or to these Goods for his loss thereon. Obscrv. 2. When accounts with persons are made even by receipt* or payments, those accounts stand balanced already. Obscrv. 3. When accounts remain unfinished :— Case 1 . If it be of money remaining in hand j Rule. Dr. Account of Balance, Cr. Cash. Case 2. If it be of persons who are debtors ; Rule. Dr. Account of Balance, Cr* their Accounta. Case 3. If it be of persons who are creditors ; , Rule. Dr. their Accounts, Cr. Balance. Case 4. If it be of goods which are all sold, and there is gain } Rule. Dr. those Goodf, Cr. Profit and Loss. Case 5. If it be of goods which are all sold, and there is Iom j Rule. Dr. Profit and Loss, Cr. those Goods. Case 8. If it be of goods, part sold and part unsold ; Rule. For what is sold Dr. and Cr. as above j for what is uniold Dr. Balance, Cr. the Goods at prime cost. , Note.— The siime when all the goods remain unsold. Observ. 4. The accounts of Insurance, Charges of Merchandise, Interest, House Expenses, Sec, are all balanced by Profit and Loss. Observ. 5 The accounts of Profit and Loss and Balance, are balanced, by Stock, then being made Drs. to or Crs. by Stock, as their particular balances direct. Observ. 6. The account of Stock is balanced by the several balances of Profit and Loss and Balance being brought thereto. Observ. 7. The account Balance in the old books will be the In- ventory of the new ones. THE END. MONTREAL : ARMOOR AND RAMIAY. .....1 1 THE NATlO.NAL SCHOOL BOOKS. The ;jiil)iiM-llier«,i>ftrly l