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 Photographic 
 
 Sciences 
 
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 23 WEST MAIN STREET 
 
 WEBSTER, NY. 14580 
 
 (716) 872-4503 
 
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I W I l» .111111 Ml^ I ^1 I Iipipip.i ,,,1 ,111^1 I II 1 (^ 
 
 BO 
 
 AU1 
 
Hwai 
 
 PUBLIC SCHOOL 
 
 BOOK-KEEPING and BUSINESS FORMS 
 
 av 
 
 J. S. BLACK 
 
 AUTHORIZED BY THE EDUCATION DEPARTMENT OF ONTARIO 
 
 TORONTO 
 
 The Copp, Clark Company, Limited 
 
.«.™. - » "' - - "-^rr- ;;:';;=■:; srr- "^ ' ■ '"" '-'• -""" "■"""' 
 
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PREFACE. 
 
 IS 
 
 / 
 
 ;tq 
 
 ^ \. ^ l>()01v Jiuu'li siiiiillcr tliim this, dciiliii;^ w ilh l)iisiii('ss forms find tlic thcoiy ui Jlndk-kcvpiiiL,', wm 
 w C^^ ^ designed to arcoiiipany " Sc^bs in Practical IjDoic-ivOcping,'' but it was hclicvcd tiiat tiic same 
 "^^^./^^ IxH)!': sim|ilifi(Nl and liberally supplied with sets and rxereiscs, it' sold at a moderato pi'ice, would 
 "^^^ ^ meet the needs ot" many High sclioi'ls and the continuation cia.>-es in tli(! I'uiilic schools. 
 
 There heiiiif no preface in the "Sets in I'l'acticil Uook- keeping;," w(! miu'lit slat(! here thai tlicy wi-re 
 conijKJsed with a view to giving Pidjlic and High .scliool pupils instruction in hook keeping hy the most 
 modern method. A dozen similar woi'ks liave been issued in the Unicil States during the ])ast il\e years, 
 l)ut the prices have been such as to put them entir'ely beyond the reach of our puj)iis. We beheve Me have 
 overcome this obstacle, and hope these sets, which contain actual Canadian business forms, arranged to 
 illustrate some Canadian ))usines.s methods, will commend themselves to the teachers of the province. 
 
 In this te.\t book, that the continuity of the suV)ject of Book keeping might not ]w broken, we thought it 
 wiser to put business forms, etc., in the front of the liook. The teacher may umi his own judgment as to 
 >vhen he shall give iustructiou in that part of the work. 
 
 The chapter on Values was inserted to aid us in throwing off the yoke of Sinyh; iMitry. Anyone can 
 instantly grasp the idea of (jeflhuj and giving things, and the imagination <;m be better employed than in 
 dressing money and mercliandise in the guises of debtors and creilit(jrs. 
 
 A system of recording the getting and giving of values is what w(» should deliric. as I>oul)l(! Entry. A 
 system of recording the delators and the creditors is Single Entry. A hylirid of these two systems is the 
 one usually taught and named Double Entry. Like many hybrids, it may be; preferable, but the straight 
 original .systems are more easily mastered by beginners. 
 
 Ft is hoped that it is .scientifically correct to say that pr(»mises are a second fact,oi' in the meihanism of 
 exchange, and if so we are absolutely certain that ni> distinction should Ite made between written and 
 unwritten ones, and further we have no hesitation in .saying that cho(|Ucs and other bills rif exchange are 
 promises. 
 
 S(jme of the minor chang(\s tliot apjjear to be innovations weri; not mailo to lit a. fad theory. Most 
 teachers and accountants had dropped the atrophied "Dr." and "To" in Double Entiy long ago. The 
 stereotyped manner of tilling up the explanation cijlumn in the leilger had passed away, and if there is no 
 useful explanation to make it is better to leave the column blank. Ilalance account, which never made its 
 appearan(!e in a business man's ledger, has been excluded from the pages of the Text I'.nok. J'ersonal 
 accounts are not balanced and ruled olF at the end of a .set, because it is not customary to closy them 
 at the end of a business year. 
 
 In the matter of drafts, we h.ive endeavored to follow Canadian business practice rather than devise 
 puzzle journal entries. The payee of a draft is either the drawer himself or his banker. J. (iray does not 
 draw on R. White in favor of S. Brown, yet in examination papers we find "Gray of Winrlsor draws on 
 "White of Montreal in favor of Brown of Winnipeg ; (i) give Oray's journal entry, (ii) give White's entiy, 
 (iii) give lirown's entry." Gray might write anything, for he is evidently ignorant of business methods. 
 W^hat the other two might write we shall not say, because we are not aware of any business channels by 
 which this e.xtraordinary draft could get round its course. AVe have also excluded the " convenient " sight 
 draft and the ubi(iuitous order. It s<'ems strange that any on(; should lea<l pupils t<j believe that freight 
 could be paid with a sight draft on Mr. Anybody of Anywhere. It is well known that station agents will 
 not take cheques unless "marked," except from business houses in whose standing they have perfect faith. 
 
 We believe the etchings and the larger size of the pages will make the illustrations more helpful to the 
 teacher and pupil, and hope that the sets and exercises are new, interesting, and sufficiently varied. 
 
 Chatham, Sept. 1, lUOO. 
 
 J. S. BLACK. 
 
 ^;':*nr;-^'*rTf' 
 
TT^ 
 
 3. 
 
". ^ 
 
 ' 
 
 ! 
 
 CHAPTER 1. 
 !v\i;r I. 
 
 Vol'CHKKS, iniSlNKSS FoR.MS AND CU.M.M KlU'l AI. PA1'KI{. 
 
 1. I'.cfon^ ili(^ |iMi.il l)c,<,'iiis tli<> study of 15(M)k'krc)iiii-,' it is di'siniliic tlial lie sliould li;ivt> somk^ t';imili(iril v 
 with the iwiiMM-siissdc-iated with I'.nok-kcrping. Wo shall illnslr.nu l.y cx.irt ivpr-wiuct ion, f.iniis nf iioiiii;d 
 size, so tliat th'! \n\\n\ iiiay not only know the! wordin<,% but may have a rorrect idea ot' llie aT)i)oaratiff of tlif 
 paixM's ummI h/ hanks and nu'irantihs houses. 
 
 l>KI'INITIONS OK l'\i'i:i;s that do not CoNTAIV PkOMISKS, \N'I) \I!K,, TIlKliKKOIIK, OK NO 
 
 ('O.MMKKCI Al, X'aUK. 
 
 2. Voucher.- -Any thi 111,' that (niih-ncrs the cmrc.t 
 
 ncss of accounts, such as a receipt, cancelled 
 (■he(|iie, or other evidence of payment. 
 
 3. Receipt. -A written acknowledgment of having 
 
 received something specified, with date, purpo.se, 
 signature and such other particulars as the cas(! 
 re(|uir(!s. 
 
 4. Bill. - -V statement .setting forth the items of 
 
 goods j)urchased, or the amount of a del)t, with 
 items, etc., for goods delivered or services ren- 
 dered. 
 
 5. Invoice."- ^Vhen goods are sold at whole.sale, tli(^ 
 
 seller furnishes the huyer a com]>l(M(! list of 
 ('oods toii'ether with terms, prices and discounts 
 at which they are sold ; such a list is known as 
 an invoice. 
 
 6. Statement of Account. An itemized list of 
 
 deliiis and ci'edits nf a j)ersonal account, nv a 
 sunnnai'V of th(! business t fansactions betwei^n 
 two linns, covtwing a certain jx-riod <>f time. 
 
 7. Account Sales. — A detailed stat(;m(Mit rendered 
 
 by a cnnuuission merchant to his principal, 
 showing particulars of sales, expenses, and net 
 jiroceeds. 
 
 8. Credit Note i^ an acknowledgment of .-m error 
 
 in a recent invoice, or an acknowledgment or 
 receipt for goods returneil by customer. 
 
 9. Deposit Slip. — A form fm-nished by a bank to 
 
 a depositor for the purpose of recording an 
 itemized statement of the diiVerent forms of 
 money that compose his d(>pusit. 
 
 L— IIFXJKIPTS. 
 
 10. Tliero is no recognized classification of receipts, but there are from five to ten forms of frequent 
 occurrence that receive names. These names ai'o derived from the phrase or clause which immediately 
 precedes the signature. We have receipts on (iccoiint, receipts in full of account, receipts for rent, etc;. 
 
 11. You cannot compel a person to give you a receipt, so when a receipt is likely to be refused, payment 
 should not b(^ made except in the jire.sence of a witness. 
 
 12. Ueceipts for the pajnnent of money may be explained or contradicted liy other testinumy. 
 
 13. The last phrase or clause of a receipt should be very explicit ; for instance, a receipt for rent should 
 not end witli the words "for rent," but .slumld go on to state the property for which the payment is made, 
 and the date up to wiiich the sum is payment in full. 
 
 14. Because of the ease with which figures can be altered, receipts should contain the amount in writing. 
 
 15. A receipt in full of all demands, when not obtained fraudulently or in error, extinguishes all actions 
 or rights of action. 
 
 (ifvlKgSTiSw'^B 
 
 
m 
 
 16. N\ licii u iccci|((. i , tiikrii tidiii all iij^f'iil, or cnllcciur it shuuld Ii;im' the iiuiiic nt' (lie |niii(i|iiil, ainl the 
 ii.'iiiK* or initials <it' llic ai.'<'iii, nr colicctdi', uiidiTiicai li. Or tlic ;ii,'riit, may siyu liis oaii iiamt',ainl iiii<lenifatl» 
 tlic {iriiifipal's, wilh "for" lictiirc it 
 
 17. NN'lii'ii a rcci'ipt is f,'i\i'ii for iiioiicy paid on a iiiort^au'c, note, etc., an cndiu'Kciiii'nt is also iiiadt-; tlio 
 ('iiiiorscnirnt sliould .stato tJiat a rt'rri|it was i;i\cii. In tin- iccfi[ii, itsoit', iiifiilioii siioiild lie made of tiio 
 (■ndoi'scincnt, and caro slioiild In- taken to di'sciilic tin- note, etc., on wliicli the cndorsiMncnL is inado. 
 
 18. l!<'i-fi|iis may I"' madi' on hills, slaKMiii'iits, notes, drafts, etc., and may consist of one or uiorts woi'ds, 
 lis : " Paid " or " IJeceis id jiaymcnt," 
 
 19. A nolo in the liaiids of ilie maker, or an afee{>tanc(! in the liands of an ai'('e|itor, is cvidencn that 
 it is j)aid ; so a receijil is iiiinecessary. If tlici'o is no <food reason fur keeping' a note, a safo plan vsoidd l»e 
 to destroy it. lUit if proerscd, it would l)e well for the maker or aceejitor to caiicel his ,' ignaturo hy 
 drawing' one or two lines throuLjh it. 
 
 20. ll.TCMpt.s are often taken in i)ooks kept tor that purpose. Wiien n(jt .so taken they oughl to ho 
 oarcfuily tiled away in order of date. 
 
 21. .Mmost, every \)usiness house has jirinted hlaiik forms of receipts ; in tlie ahsenco of the.se they ought 
 to lie written on paper of eoiucnient dimensifjii.s, not less than six or se\cn inches long, and thrive to three 
 and .i-iialf inclu'S wide. 
 
 22. W'hei't! ;i person issues many I'eoeipts, entries should ho made on st uhs setting forth the main facts 
 written on t-lie receipt, itself. 
 
 23. .V cheijue when ]ia,yal)lt! "to ordi r " heeomes the host kind of a receipt, liecaus«^ the jiayei; must 
 endorse it hefnre Ik- geis tlie money fur it from the hank. TIk^ elicijue is therefore evidence that a certain 
 amount of money was p.iid to a certain person, l)y a disinterested party, at a cei'tain lime. 'J'he person who 
 issued the clu'cjue and wants it as a receipt will get it hai-k from the hank at the end of the month. 
 
 24.. 'I'lui clieipK! can he made a most valualik^ voucher iiy writing on it the ohfi'ct foi- which it was 
 
 given as, p,iy to Henry Smiili or order 
 
 One Hundred and 'l"en Dollars, 
 
 for rent of store, N-). >0 King St., for Sept., 1900. 
 25. A hill of lading is a receipt for merchandise frfitn a railway station agent, master of a vessel or tlie 
 agent of any other common carrier, with a contract to deliver tlie property in tiie same condition in which it 
 was receix'ed, to some jierson to whom it- is addressed, or to the order of some llrm or hank whose name 
 
 appears on the hill. 
 
 I 
 
 Ri'ci'ipt for Monoy on Account (by a clrrk). 
 
 
 
 "vHmvw-**! 
 
» 
 ' 
 
 ?.. Jirci'ijd ill /ii// <>/' Ai'ciHiiif. 
 
 ClISTIIAM, Ont., S.-|pt. 111., IDUO. 
 
 Rwoiv.'.! tV.MM .htmcs Sca.iluM, 'Wsvuly live IhMavH i.i full of a.T.M.ni. 
 
 |;< )|!'l'. s'I'oVKL. 
 i5!2r).00. 
 
 3 
 
 Jificeiid ia/n/l for Unit (hij aii. iKj-nt). 
 
 Toronto, An-, .".nl, 1900. 
 
 ll,.,.nivod fro... M. .r. O'N.nll, Seventy-five Dollurs in full, for tluv.. i .tli^' .v„t, ...i-li.,- .Inly :5lsl. 1'. , 
 
 f,. house No. 74 Cenu-o St. T. .i. Tl lOM I'SoN, 
 
 •^'•'•00. |,,,,. y I'lTKRH. 
 
 lie 
 
 WUii 
 
 Rpecipt ill fii^^ "f' '"'' ihiiKtnda. 
 
 TonoNTo, May Clli, 1900. 
 
 Receive.! iVo.n M. S. Taterson, tl.o su.n nf ( .ne 'i'h.u.saml I .ollius, \n full -f all .len.a.uls. 
 
 SI 000. 
 
 ■') 
 
 Receijit for Xotn. 
 
 GuKi.i-n, Ont., .Imic I'.tli. liiOO. 
 
 Tleceivea fron. Wn. Ha.lW, Ins note at throe u.ontl>s for Three II UM.hv.l an.l Ten ,-, hollars, which 
 
 when paid will be .settlement in full of account. 
 
 8:510.42. 
 
 6 
 
 Receipt for .]fovei/ on a Kole. 
 
 (Si„.iUrf.,rn.o„..yona,nor..a„..) ^_^^^^ ^^^^^ ^,^^^^ ^ ^^^^^ 
 
 Received fronx J. Hartman, One Hundred LoUars, to apply o. his note in .ny favor of .fanu^uy 4, 1 900 
 
 .r. A. MAl'lIKSON. 
 
 i!(10() 
 
 S. INNES. 
 
 KXEIICISR I.--\VKITIN(} ItKCElPTS. 
 Take two sheets of foolscap and divi.le then, into i:,ur pieces each, and upon the pieces write the 
 
 following : 
 
 1. Write a receipt for .^700 receivecl l.y you fron, 1!. C-ok, in full of account. 
 
 2. Receipt for 8100, being two months salary as l)ook-keepcr. , , , . ^ o/^n 
 15 Receipt for $50, being a partial payment of A. McDonald's note in your t.nor . ated July M900. 
 
 4 S M Tullv pays vou 8l:5o on his note of 8o00, of which you are now tlu- ri.httul holder, hut winch was 
 ori^^inally made out in January 24, 1900, in favor of S. (Hen A- Co. See page 13 for for.n of endorsement and on 
 the'backof the receipt you have just written, write the endorsement that should have gone on tlie note. 
 
 5. Give J. Ciray a receipt for a note at 30 days, paid in settlement of aecottnt ..f 84G.86 (current date). 
 
 g' Write out a receipt for house rent, using date, amount, persons, etc., of your own choice. 
 
 7. You have received a Cleveland Incycle, vahied at 8^0, from S. T. Jones, to be used for one nK,.ah and 
 kept in repair. Write a statable receipt. 
 
 8 Write Robert Simpson a receipt for $36.50 for six months' interest due to-day on his mortgage tn 
 your favor, bearirxg date September 4, 1898, for $1000. (Current date). See 17. 
 
1 1.- KILLS. IN\(»|('|;S. ANI> ( IlKhir NO'I'I'IS. 
 
 20. I l' I III' |iiltr|i;i (•)• nt' ;^imii| . is ;i lii.iMll t'.ul iiicr i,v u ivl;iil lin r(li,i III . lie U ill call tin- •^l lllcliii'rit < >t' I lie j,'i loi Is 
 liipiit^lil- (///, iiimif. It' lie is an niijiiiary cuii-'Uriii'f In-uilliall it o lull. In ril Iht (•iiTiiiiislaiin', the .sclN-r, 
 \v llii t'linii'-lics il, will call it II, 1:111. A liill ^lllM||(| 'j^\\ (' tlic [ilacc ami dale nl' -ale, tlir Iiainrs nt' (lie Innri 
 iiiid the seller, a (•(iiii|ilel<i (lescript iuii ot' the ^'iiiids— t lie iiiiiiilier ul' vmkU, |pi)IiiiiIs, ete. — the |iiire i,( the 
 lilt iele-, t III- (lisriMllit, it' HtiV, tlie |p|iei! lit' |pii\es or i it lief [UU' k;i^e>, I he tVeii:lil or ill>-lirM lier' if |ire|)aiil. 
 
 27. Writing". - When making <imI an iiiMiice tlHr(^ shiMiliJ lie im erasures or iieiii> interlined. The 
 e\ten^i(H|s iiiii-i ha \c ll:;iires nf I he >aiiic order exact ly under one a 111 ii her. 
 
 28. Extensions and Footings. lAtensinnsaie li'^Miie-, nlitained hy ////////;)////*/</, and are set down in the 
 first, nr I ell cm! Ill nil lit' the 1 w I) dull i ill' iiHMiey col 1 1 111 I IS, I'l ii it iiiijs II re lii^Mi rc^ nlilui lied liy add in,!.'. iiiH I lU'c set < li iw II 
 in the 111 Her or i l.dii nt' the I\m) eiiliiinn'i. In liiil-- and in voices the niitiilier o)' ari i"les uiid t he price accoinj'iiny 
 the de-cl i|it imi. The /iri>'l>i('f ol the lilllllliels is <lii i .lii ilsiini. The .^inil of the extensions is called the /nii/ini/. 
 
 29. Discounts. Il iheie i, nodi-count allowed the t'oiilin'^ is put in it s o\\ n ciiliiiiin direct ly, luil it' a 
 (iiscoiint is allow ell the t'ootini; is put iuiiiiedi;iici\ under the exlcusioiis and the di--coirit -d under it, and 
 then t he dill'creiice is c;irriid into tlin outer eohiiiiH. 
 
 30. Receipting.' Never writd "I'aiil"' or •• lleeeivi'd payiiient " on a liill or iinoice unless it has lieeii 
 paid u il 11 iiionev. If paid liv '<i note or an acceptance w rite I hat t'.ict disi inct ly. 
 
 31. Mailing. -It' the laiMr is Jiresent at the seller's place ol' hiisiiies-, he may carry aw ay t lie invoice, 
 liiit, u-ually --ales ;ire made Ky lr,iveller> ;inil il is the practice to ^eiiil the invoice hy mail, or it' the ^oods are 
 scut in liable \iv express, the invoice may lie enclosed in !i sliippiii.i,' la;,' envelope. 
 
 32. Checkin'"''. When the i,'oods are recei\ed, cheeked and found correct, tlie clerk si Id mark the 
 
 invoice with his initials, the invoice muy then he handed over to the liook keejier who will credit the seller, 
 alter which he will write on the invoice the niimher, the wiird '• Miitered " and his initials. 
 
 33. Piling. — Invoices ,ire either tiled in indexed tiles which ari! enclosed in )iast('l)oard cases, or arc 
 pasted on the leaves of a l)ig hook made of pl.iiii m;inilla paptu'. (See IiiMiice I'liok.) 
 
 .( /nil ir'ttli- ( 'rc'ldti tii'Uli'il I'll (I Xiiti-. 
 
 J. A. c.ii/>\ys, 
 
 Si. Thomas, Jan. .;///, I! inn. 
 Bonyht v/ I). L. SNEIJJKli. 
 
 M«, 
 
 To III T<>i>>^ of Xid ('""I ot ■''■■'>" 
 
 " .' " firata (oiil " U.'IO 
 
 " .7 To/v/.s' ]V<>n,l, Ih;rhiiialMltplc'' .'i.dO 
 
 '' / l.uail KiiuKiiKj J.'iO 
 
 Ft'h. .', Ii;i Cii.^h 
 
 r.i 
 
 1 
 
 ->0 
 
 " in 
 
 JO 
 
 ■•4 
 
 i^clUeil h(j Note at JU <ht>/s. 
 
 J). L. SXh7DEIl 
 
 <S'6' 
 
 oO 
 
 :',0 
 
 
 38 
 
 50 
 
 CrfiiHt Xote. 
 Instead of illiistratini,' this form we state that the heading is the .same as that of an invoice .such a.s is shown 
 on the next page, except that " Bought of" reads " Credited by,'' and the printing is usually red. Tt is also 
 customary to have '■ (Credit Note " printed plainly across the top. The body of a Credit Note is identic^' 
 with that of an invoice, full particulars of the goods, prices, etc., being given. 
 
 Il 
 
u 
 
 34. A fic'ilit iiivi)i('(> or ('i'i'<lir. hoUmm UHt'd t'lir till" |iiir|ii>s(' iif corivctiii;,' frioi's ili/ii m.iv ucciic, ^\\v]\ an 
 alioi'tii;:,'!', uM'i rliiiru'i' 'ii' fjiiliii'i' losliij) j^ciuds tii.it smtc cliiiryfil mi ii n nl invoice. 
 
 36. I'll" I" 'INI III u ho riM'oiv's II iin'iiioiiiinliiiii of L-rcdit. slimiM diliit iIm" 1 nisi muss Iiouhc I Imt iciuiu it., uiul 
 III iki' H ciT'lil < hi yy ;icr ii'iliiiy (ii the iiatnii' ok' I lie iiiist/iki- lo lie coricrliil. 
 
 Fiiriu III' I II riiii'i'. 
 
 
 QL/ion/ qJ/.icc/ c (li^ 
 
 Qy//^^wi/ti^ d^ ct-^>fc'.:^rc^. C:>/i,oct>iyd- 
 
 .c^P" 
 
 CAIH OlteOUNTS 
 3 MO • COOOt • 
 
 • PtMCI'vT ir. 19 OAV«. 
 
 30 ri«vt aoona 
 
 * vin ClffV IN >9 UA»« 
 
 Tfrriu\ 
 
 Order No. 628 _^LfA^a. 
 
 --^^^ 
 
 „!:!^..-::;i.<je;^::^. ' " ''^ t-'. 
 
 
 ^?ruM7. 
 
 
 
 I 
 
 I 
 I 
 
 I 
 
 ^^lAyXyT\j 
 
 
 ^ ,:.^__/__^l rrj 
 
 
 ^ 
 
 3'^! /v^ 
 
 
 
 c5 /JJ 
 
 1' / 
 
 / 
 
 
 yJjU^ j f S ^CKAJiiyr-'ldc^ /OP \ 
 
 ^3^^"^g-g'-a-g-< • fCbL^xtLri'y.^Sf^n^ ^ 6 -^ 
 
 J3<^ /iT 
 
 ^_<?,^_ ,f'/^^^0 \ J^ 
 
 =y'S?,--m:^ 
 
mmmmmm^mmmim 
 
 III. STA'IK.MHNT OF ACCOUNT. 
 
 36. A l)ill wliioli is a sunimarv of scvctiil bills jji'^vious])' issued is tiM-ined a statement of account. It 
 ^lould contain tlie (liito and total ainount of each bill rendered, and beiosv should ])e shown the date and 
 amount of any paAincnls or other- credits. 
 
 37. In retail esial)lislijneiits, where bills ai'e not usually <,dvcn with sales on account, an itemized state- 
 ment is rendered ot.i-e per nionlh. These monthly statements ar(! usually called accou':.:s. 
 
 38. When .'in aci'ount is paid it should be receipted by writing " lieceived payment," and a signature. 
 
 Xo. 1. 
 
 No. 2. 
 
 Toronto, Out., )/'Uy. i^ti, IcjGC. 
 
 
 -rr D. E. McDonald, 
 
 125 Y0x\G15 STKEHT. 
 
 IS, I J(^Ul)lCit 
 
 I Jin Li 
 
 I f/cl-. Pcnclii- 
 10 Jni 6fnn>^ 
 
 20 
 
 I -daJeit- 
 
 I \ic.ttet- J tie 
 
 iA 
 
 ')Il 4 
 
 fvv-e.to-t e J. 
 
 iir, 
 
 I o 
 125 
 
 25 
 
 SO 
 
 r75 
 
 10 
 
 50 
 
 '25 
 10 
 25 
 150 
 1S5 
 
 20 
 
 40 
 
 Toronto, Ont., Jun-e. j>v^, icjco. 
 
 ^fi, '6. (7. J^cuii'.el'ij 
 
 D. R. MclNTYRE & CO., 
 
 In account 
 with 
 
 47 FKOXT ST. KAST. 
 
 Intcriit at ten per cent, if twt paid '.vhen liin: 
 
 :>ftc 
 
 
 
 To MJse. 
 
 
 
 
 
 f 
 
 4 
 12 
 
 Clx. het~ iilt f-e.ii.cl. 
 (( <( <<" 
 
 024 
 125 
 
 30 
 
 
 
 
 17 
 
 (( (C (( 
 
 47 
 
 20 
 
 
 
 u 
 
 (( C( (C 
 
 342 
 
 
 
 
 
 SO 
 
 1 
 
 
 
 
 
 
 
 fVO-tC 
 
 6 
 
 
 1144 
 
 50 
 
 
 1 
 
 
 
 30 
 
 1 
 
 Jjii- /{' . C loot. -X I 
 
 1 
 
 
 
 
 
 It a te- 
 
 300 
 
 1 
 
 
 
 
 SO 
 
 J'd ip no-^e. 
 
 Dear Sir, — 
 
 We have taken the 
 liberty of a raw in i^ en yon. 
 for the balance, and trust 
 it will be duly honored, i 
 
 700 
 
 i 
 
 liiOO 
 
 
 
 1 
 
 ! 
 
 
 144 
 
 50 
 
 
 
 Yours Tery truly, 
 n. K. Afefntyre d-' Co. 
 
 1 
 
 
 
 
WVi 
 
 jcount. It 
 
 B (late and 
 
 oized state- 
 
 lignature. 
 
 , /CfCO. 
 
 & CO., 
 
 \ST. 
 
 w 
 
 20 
 
 1144 50 
 
 1000 
 
 I44d0 
 
 > 
 
 IV. INVOICE OF SHIPMENT. 
 -^Q An invoice of .nods shipped for sale on connnission must distinctly state that the goods are not sold 
 out..ifht t t: a7nt. 'n the hooUs of the shippo. and his bills d., not sho. tins, the goods a-e hahle to 
 seizure in the warerooms of the agent, should he be in bus^^ess .Idhc.utuss. 
 
 Ueadimjfor an Invoice of Sh ipmnit on CommlxHion. 
 
 invoice 4 SOO lU^. 4 3t^^v, M Armimt and Risk 
 
 of & i- ;^a^-m/^nv ^ Co, and skipped from r}Uryvilt<y^^y via 
 a.3.R. tolYUyrx.t'u.ol. thmcevia f^^Mll A'Ov^. f'> ^^'- ^o-f-vi^^^. 
 TliXcL", at a through rate of 40&- ]a*.x ^M- 
 
 V. ACCCUNT SAMS. 
 
 comnus'sion, drayage, etc. See the following fona :- 
 
 M. c£ S. GIBB, 
 
 COMMISSION 
 
 MERCHANTS. 
 
 96 CHURCH ST.. TORONTO. 
 
 Acconnt Sales of Merchandise received e-^^y/. 70^ 7^0 
 
 From 2). (^. Srkomps07V, c^erpiS, ^Nf, to be sold on co^mmssion^ 
 
 CHARGES. 
 
 SALES. 
 
 3etir Si?) 
 
 Find enclosed 0U7' c/iefue 
 
 for $/'/3.33 as net proceeds of your consignment 
 of&dU'Cf. 70\ 7900. 
 
 Trusting that our disposal of this consign- 
 ment will meet zvith your approval and secure 
 your future patronage, we remain. 
 
 Yours truly , 
 
 ^. 4 S. ML 
 
 rVeight . 
 Drayage 
 Commission . 
 Storage . ■ 
 Insurance 
 Advertising 
 
 Cooperage . 
 Adv. Payments . 
 Dis.forAdw.Pay'ts 
 Exc. on Proceeds 
 
 ; 14 \ 
 
 
 nit; 
 
 1 
 
 .!r> 
 
 
 S 
 
 02 
 40 
 00 
 
 
 • 1 
 
 50 
 
 
 
 25 
 
 •>:9 
 
 hi 
 
 NET PROCEEDS. 
 
 I I •> '>■> 
 
8 
 
 KXIiKCI.SK II. 
 
 41. IVrUe thr, folloiriiig litvoices uiul hiJ/s : — 
 
 1. Bought of A. A. C.iinoron & Co., terms, 30 days, 1°/ net cash : "J lihds. sugar, lU'JI ; 1045 lbs. gross, 
 less 1(15 and 107 ll)s. t;iiv, (,/ tc. jx'r 11.. : 5 hbls. j^nvau. sugar, ;iir)-L'0, ,".16-18, 320-20, .".17-19, 3U-1S, al 
 l.loc. jicr 11). ; f) blil>. iiK. lasses, 11, .".S, U)!, 40', .'iSJ gals., at OOc. per g;d. (40' means 40;| gals.); 10 ehests 
 
 Ccyioii te.i, at- lOe. jut lb. (130 lbs. pci- c-lu'st). 
 
 2. r.oiight of M. .1. .Mortnn A- ('<»., for (■;i,sli, tor house! : 4.'"'- yfls. of wool ejii'pcit ([i 60c. ; 27 yds. of .stair 
 eai'pcl. ((( t-"ic. ; 7-")' yds. Urusscls (<i, 7."lc^ ; 17 si| yds. of inlaid oilcloth (<i .^1.25 : labor of cutting, sewing, 
 laying etc., ^~). 
 
 .".. Sold I). C. Aiidci'son, «in his note at .'. months: .". IT/C. Young Hyson tea, niarkcnl S. i'>. ijn-\7) each, 
 (>j :i2c. lb. : 1 chest, .lapan tea. I l.'. -20, @ 20c. ; 1 bbl. r..a.sted collee, 1.50-20, Qi 2.1c. 
 
 I. Sliijipeil Ik Mdutreal, thence to Li\(M'])ool j.er .Allan LiiKi steamer, consigned to A. D. Stewart for sale 
 on own account ami I'isk : 1200 bbls. of apples; 300 bljjs. Kings marked K extra; 500 X. Sj.y marked N. S.; 
 400 bbls. Greenings marked <!. (Your own prices.) 
 
 KXERCrSK TIT. 
 
 42. II /■//»; f/n' j'ti/loN'i Hif ((I'i'nnilt ,sYlf/r,y .• — 
 
 1. .Juno 4, li)00. lloi'eived from C. E. T'orter, Goderich, to be sold on his account and risk, 4 cars, 600 
 bbls. of flour ; paid freight. ."^150 ; diviyage, .^12. .Juiu! 12. Sold 250 bbls. to G. 11. Hunter for cash, at $5 
 per bbl.. and the baTance at .'^4.75 to 11. C. Bruc** for cash. Further charges, .S5.75 for insui'ance, !i?G for stor- 
 age, -83.50 for additional drayag(!, connnissi(jn at 2 . 
 
 2. Se{)t. 15, I'JOO. lleceived from 11. G. ^McCarthy, 250 bbls. of apples lo be sold on his account and 
 risk ; ])aid freight, .^50; dra.yage, i?6. Sejil. 2S. Sold the whole to D. F. Cjuinn, for cash : insurance, ^%; 
 storage, Ic. per bbl ; commission, 2.', . (Your own ]irices.) 
 
 PAJIT IL. 
 
 
 CO-M\ni:RCIAI, PAPER. 
 
 J)KI-IMTI0\S ok FoliMS WIIICII CONTAIN' PROMLSKS ANO AI!K, Til KUKF'OUK, OK COMMKRCIAL YaLUE. 
 
 43. A Promissory Note is an unconditii^ial prcmiise 
 
 in writing made by one person to another, signed 
 by the maker, engaging to jiay on demand, or at 
 a fixed or determinable future time, a sum cer- 
 tain in money, to, or to the order of, a specitied 
 jierson or to bearer. 
 
 44. A Due Bill is simply an acknowledgment of a 
 
 debt, and is usually drawn for a small sum to 
 settle an account. 
 
 45. A Bill of Exchange is an unconditional order 
 
 in writing addressed by one person to another, 
 signed by the person giving it, requiring the 
 person to Avhoin it is addressed to pay on 
 demand, or at a fixed or determinable futui'e time, 
 a sum certain in money, to, or to the order of, a 
 specified person or to l)earer. 
 
 46. A Draft is the common name for a bill of 
 
 exchange when it is drawn and payable in 
 Canada. 
 
 47. An Acceptance is the name given to a draft 
 
 when the person to whom it is addressed puts 
 his signature upon it. 
 
 48. A Cheque is a bill of exchange drawn on a 
 
 banker, and payable on demand. 
 
 49. An Order is a request for the delivery of goods 
 
 or money. It differs from a draft in being 
 more simple in form, and is generally payable 
 in goods rather than in money. 
 
 50. A Deposit Receipt is a receipt and promisaoiy 
 
 note of a bank Issued to a depositor for one 
 definite sum of money. 
 
 ♦ 
 
 »,^»i»^ .»».-..»*-i«HB«».-l««»« 
 
 agggg ' 
 
T. — NUTKS. 
 
 h 
 
 i 
 
 'i 
 
 51. A ''I'^f'' is a written promise, a ihri/'f is a written nrdei', l)Tit tlie order cnntains a ('(tneealed prnniise,. 
 for the ])ersf»n issuing tiie order is liy law a surety against loss to all pei'sons who may purchase his ordijr. 
 When a draft l)eeomes an ((cccptdKi'i', that is, when tlie pei'snn to \\honi it is addressed puts liis signatMre 
 upon it, the order lieroin(\s a written proniisci and is superior to an ordinary note l)eeause it has the acceptor 
 as a principal debtor and the drawer of the oi'der as his surety. 
 
 For III of X(ifi\ 
 
 Due C'^i^ O^"- = Maturity 
 
 Face 
 
 ^ 
 
 = mA5,ji 
 
 so 
 
 n.^ Holder = 
 
 
 J^M 
 
 ( 
 
 r/<. 
 
 
 Signature 
 
 52. —Parties. 
 
 1. :\laker. 
 
 2. Payee. 
 ;$. Holder. 
 
 4. Holder in due course. 
 
 5. Indonser. 
 
 6. Indorsee. 
 
 53. Parts. 
 
 54. -Events. 
 
 1. Face -Front. 
 
 2. Face — Amount. 
 
 3. 15ack. 
 t. r.ody. 
 5. Date. 
 
 T). Signature. 
 
 7. JCndorsement. 
 
 1. Issue. 
 
 2. Negotiati'in. 
 
 ■1. D.iys of ( I race. 
 
 I. Nominal Maturity. 
 
 i). Maturity. 
 
 6. ] )ishoiior and Trotest. 
 
 7. Discharire, 
 
 55. The Mnker is the one who makes the promise. Hie rtiiicp. is the first Unl<h<r. Any sul)sequent 
 Holder who obtains the note, not knowing it to contain any fraud or defect, is a Uoldm- In Due t'om-si' ; 
 any oiui who writes his name on the *l)ack or front other than tla^ maker, is an Indorxrr ; the ImUin^op, 
 is one to whom the note has l)een transferred. 
 
 56. The pupil may learn the parts b\' studying the form of note. 
 
 57. Iss\ie means the first delivery ; Negntiation means transferring to a new holder ; Dtnjs of (irm-i' are 
 three days allowed the maker l)eyond the stated time. A note for thirty days is not due for 33 da3-s after 
 date. Demand notes and demand drafts are duo when 2)re.sented. KomiunJhj due is the last dav of the 
 stated time (it is a date of little importance). Matiiritij is the last of the three Days of (ir-ace ; Dlx/iotior is 
 the refusal of the maker to pay at maturity; ProteM is the process at law to hold tlu; indorsei's liable. 
 Dtseharye is the name applied to the act of receiving payment and the returning of the note to the maker. 
 
 •Correctly cm the liack. 
 
5S 
 
 58. Sundays and Holidays. -As stated, tho maturity of a note occurs on the last of the three daya 
 of gnu'c, but if this hist day talis oii a Suii(hiy or a l>anlv holifhi}', tlie note is not payable till the foUowin*^ 
 day. If these days occur so tiiat one iiunu'diatoly follows the other, and if a note matures on either of them, 
 it is not payable till the day following the two, 
 
 59. Interest for the three days of grace. Ordinary citizens lend money by the year or month, 
 and as a rul(! make iio cliarge t'nr the interest for tiie thre(i days of grace. Banks expect all borrowers to 
 keej) th(! money till tlu; last day of grace, and always charge for the three days. 
 
 60. Peculiarities of the Calendar. — If a note reads, "Thre(' months after date," etc., calenchir 
 months ar(! meant, /.'., from a certain day in one month to the same day in the next is considered a month. 
 l>ut, except for leap year, Feb. has no 2'Jth ; it n(>ver has a .30tli or 31st day ; April, June, 8ept. and Nov. 
 have no .31st day. If through counting calendar motiths notes become itoniinnnif due on one of these 
 days, then the last day of llie month is taken as the nominal due date, and the third of the following month 
 is the day of maturity. 
 
 61. Computing time in days. — The rule is : exclude the day from which the time is to begin to run, 
 and include the day of payment. A note dated .Jan. 13th begins to run Jan. 14th. Therefore there are in 
 Jan. 31 - 13 IS days, l)ut if the 13th were included there would be 19. 
 
 62. Dating. - A note may l)ear a date earlier than the one on which it is being issued, or it may bear 
 a date later, or it may bo dated on Sunday. Tf the tlate is omitted any holder may insert the true date. 
 
 63. Place. — A note may state some jilace other than the real place it is drawn, and may be made 
 payable at any place the parties agree upon. A bank is the best place. 
 
 64. Changes. - -An alteration which changes the important terms of the note invalidates it in the 
 liolder's hands. 
 
 65. When the amount in the body of a note (lifters from the figures, the amount written in words is 
 consiilered tlu; true ;iinoiiiii. 
 
 66. His Mark. — Tf a nott^ is made by .a p(>rson who cannot write he should nuike a cross. It is 
 necessary to have such a sign.ature witnessed. 
 
 67. Minors. — A person under ag(,' who makes ,1 note is not bound by it unless he ratifies his signature 
 when he iieeouies of in:e. 
 
 68.— Kinds. 
 
 1. Xon-negotiable. 
 
 2. Negotiaiile bv endorse- 
 
 ment. 
 
 3. Negotiable liy delivery. 
 
 1 . Single promissor. 
 •_'. Joint. 
 
 .3. Joint and Several, 
 t. Acconnnodation. 
 
 1. Demand 
 
 2. Time. 
 
 1. Ordinary. 
 
 2. Chattel. 
 
 3. Lien. 
 
 1. General. 
 
 2. Payable at Bank. 
 
 3. Payable at certain place 
 
 only. 
 
 4. Payable with interest. 
 
 69. The wording of the face of Notes. 
 
 1 
 
 A Note jVeyotialife by Endorsement. 
 ^•-OO- Ottawa, Sept. 16th, 1900. 
 
 Thirty days after date T promise to pay N. D. Steele, or order, Two Hundred Dollars. Value received. 
 
 THOS. ROBINSON. 
 
 A Xoti' X<'(jotial>lr. by Delivery. 
 
 Substitute " or bearer " for " or order." 
 
 3 
 A Xon-iiegotinbh Note. 
 Write " oidy " after Steele's name and leave out both " or order " and " or bearer." (Tf "only" is omitted 
 and it reads, '< N. T). Steele, Two Hundred Dollars,' etc., the note is nefjotinb/e.) 
 
 II 
 
 B 
 
n 
 
 4. Slni/lc J'rniiHssiir. 
 (Soe iitiy of t!iL' above fcirinn.) 
 
 ,1(11 II f J\ lit''. 
 (Kiicli iironiissor to pay \\M cmly.) 
 
 ^275, KiNfJSTOX, July 20tli, 1000. 
 
 Three moiil lis after date wp promise to pay ]'.. ('. Stewart, or order, Two llimdred aiul Seventy- Five 
 I )ollars, for value received. 
 
 lUCIIAlll) JACKSON. 
 P. J. KENNEDY. 
 
 6 
 
 Jiiiiif, iiii'l Si'ri'ral. 
 
 (Kai'h to pay not only half, Imt all, if one fails.) 
 
 Insert " jointly and severally " after " we." 
 
 7 
 
 Joint and Si'vernl. 
 
 (A more eommoii foiin.l 
 
 ?275 
 
 KiXfJSTox, July 20tli, 1900. 
 
 Three months after date I promise to pay 1'.. C. Stewart, or ord(M-, Two Huntli-ed and Seventy-tive 
 
 Dollars for value received. 
 
 RICHARD JACKSON. 
 
 P. J. KENNEDY. 
 
 8 
 Tim>', Xofe. 
 
 Aii.v of ihe foiegoini,'. 
 
 f 
 
 Demand Xote. 
 jajo,") OwKN SoiNi), Sept. r)th, 1900. 
 
 On demand, I promise to pay J. C. Galloway, or order. One Hundred and Tweuty-tive J)oilars. Value 
 
 received. ,,,>,,,. 
 
 C. J). COOPER. 
 
 10 
 A X()t<'. jiaijdl)/'' (it the Jiank xUjiu-d hij a pennon n-ho cnnnof, ivritc. 
 (j-^y Stuatiihov, Sept. ir>th. 1900. 
 
 Three months after date, I promise to pay C. 1 ». Dolseii, or order, at the C'anadian P>ank of (,'ommerce 
 here, the sum of Forty-seven Dollars for value received. 
 
 Witness: JAMES GRANT. 
 
 Note :— This note should be read over very caretiilly once or twice to the maker in the presence of the witness, so that 
 the latter may he able to prove that the maker knew what he signed. 
 
 11 
 A Note payable at the Bank with Interest. 
 |4^75_ ^MiTCHULL, Sept. 7th, 1900. 
 
 Three months after date I promise to pay Joseph Gilbert, or order, at the Meix-hants Bank here. Four 
 
 Hundred ami Seventy-five Dollai-s for value received, with interest at 8% until paid. 
 
 M. P. SWAN. 
 
 Note:— If " until paid' or some similar phrase is uot inserted, it will bear interest at 8% till maturity, and after that at 
 5%, which is called the legal rate. 
 
 PETER X HOOD. 
 
 mark 
 
12 
 
 1 L'. ( 'IkiiiiI yifi,-. 
 
 (Not vciy ciiMiirioii.) 
 
 .*;!0. riixTiiAM. .iiiiH- lotli, l!)on. 
 
 J'iM- iiionllis ;ifl<'i' (late T promise to pay Stciilicii liufinw s Tliirl y hollar's wnriliof I land-piikcil I'.oaiis 
 
 at, ( »ii(! l)ollai' \n-y liiislicl, to lie dulivort'cl at liis fat'iii. 
 
 .lA.MlvS 1'. .MAiri'lN. 
 
 13 
 
 Fartii ii/' Lii II Xdt''. 
 
 ,M.i niit'acl 111 ITS \vlii)S(> aLC'iits sell fai'in impliMiictits, ori,'ans, jiiaiios, stoxcs, funiaci's and otlicf articles 
 dirci't. to usiTs and olitaiii iKiirs in sci i Icini'iiL made out in tavor of tins manufaci uici', use tiie foi'iii sliown 
 liclnw. 'I'hcn t lie aiticle (•aiinot; 1)(^ sold of seized until tlie note is paid. I'arties other than manufactun^fs 
 who wish to hold artieles on a lien must mjis/ir ihu same with the clerk of the county court, who charges 
 
 a fee of ](l <-eiiK \'i>r e\'er\' such I'cei'rd. 
 
 I 
 
 
 I 
 
 $56.00 'i 
 
 No. 
 
 
 WAi.KKKVii.r.K, o.vr., Si'jilciiiUcr Isf, \fiiif) 
 
 till nr l)efiiri.; tlic tirst (lay of S' pli'mhi r, \U'il, for vahic r(M;(.'i\i--il in tlic jmruhiisu ef ii/nrni irihjiiii, I promise 
 to pay WM. WALKER & CO., oi> oi-der, Mt Ihiir oljic , h'rr, the sum of Fiflij-Sir, i<»i IXlLLAJtS with interest at tlio rate | 
 of 7 /^ per amnim fr<ini date until nialiirity, ami at the rate of twelve per cent. jK^r annum alter maturity until [laid. \ 
 
 I aurcc to fiiriiisli sofin-ity satisfuetery to \Vm. Wai.kku i- f'n., at any tiinc, if i-oi|uii<'it, I am to liavc Ihr use of the )iniiicrty tor wliioli tliis note 
 is i;ivon at my own ri-U, lnit tlie ow M(>r>iii|i and rii;1it to the possession of t lie sail I (iropcny sliall i-eiuaiii in WM. \\'Al.Kt:n iV Co., nntil lliis note or any 
 renewal then of is fully ji.-iiil, ami ni.\ liahility theri'on .sliall not he ili-lerinincil olheruisi' than hy lia\ nunt llii'reof. Should I not fulfil all the terms ^ 
 I of this a'.;reeniiiit. or shoiiM I sell or atienipt lo sell or otlii'rwisM ilispos,. of my l.inds or |ii rsoiLal'iiroiiiulN , wliii-li are heri'liy iileilu-ed for the payment | 
 hi-reof. tlii'ii this noti^ (a eop.\ of which 1 liavo received) shall hiToiiif due .aiiil |ia,\ ahic foitliu ilh, liiinii'di;itel.\ iiiion this riole hi-comiui; due in any 
 manner what soever llie said Wm. Walkku .v. Co. ma\ take possession of the proppiay for which thi.s note is ^i\cn anil sell or dispose of the .said 
 property with or without recourse to law, hut my liahility on this iioie shall not he dis<'liart;e(l hy such seizure and sale, hnt, is heieliy expressly 
 
 iinnectlon with such seizure and sale, shall he 
 
 reserved and the aiiionnt realized upon sueli sale, alter lirst payiiii; all eo«ts and expenses incurred 
 
 appliid hy Wm. W.M.iiKii \- ( 'o. in reduction of m\- said liahility on this nolo. Any action or suit hroiiiflit iu respect of tins contract shall he entered, 
 
 tried and finally disposed of in u Court liavinj,' jurisilietioii where the head office of Wm. WAl.iiKri i*c Co. is located. I-'or the purpose of ohtaining- the 
 
 aliove I declare that I am owner in my own ri.^lit of /('(' acres heiiis '■'(■■■' half of Lot S in the fifth Concession, in the Township of Kri 
 
 ■iniKisd u 
 
 I the 
 
 County of Wi'lliiuitiiii and I'l 
 
 ■ of Oniar 
 
 free from all eiictimiiranee exeeiitinj; and that 
 
 there is no niortuajic or other lien upon my chattels. 
 
 Witness 
 
 /;. A. Stintrt. 
 
 F. (Jiiill 
 
 I'ost OlHce, 
 
 ll0CkWl:llll. 
 
 am 
 
 1 1 
 Acromnioddfion Notex. 
 
 I'lanks make it a rule to lend money on the security of two or inure names only. A per.soii who is not a 
 principal dehtor, hut has alli.xed his siiiiiatiire to a note to accommodate a friend, is called an accommodation 
 parti/, and a note made out with an ai-eommodation i>arty as payee and endor.ser, fully meets the requirenient.,s 
 of the hank. 
 
 If J. B. Ifamilto!! is in good financial stamling, and if he endorses the fallowing note, a hank will dis- 
 count it and give the proceeds to C. D. Beeclier, the maker. 
 
 8500. Toronto, S(>pt. 4th, 1900. 
 
 Three montlis after date, I promise tfj pay .1. 15. Hamilton, or order, Five Hundred Dollars, for value 
 
 receive<l. 
 
 C. 1). BEECH ER. 
 
13 
 
 lOon. 
 
 ikrd l'>oiins 
 KTIN. 
 
 her articles 
 fui'iu kUowu 
 ,nufiictunu-s 
 who cliiu-ges 
 
 Tst at the riilo 
 
 il paid. 
 
 irwliiclidiisiiote 
 il iliis unto or any 
 lullil iill tliu U'Viiis I 
 ,1 f,,rthfl«iV'"'^"'' I 
 ,.omiii^<liH3 111 aiiv ' 
 ii„,„..c of tlie said 1 
 
 c an.l sale, sb.iU lie 
 
 t.t!siuini'i''-'iitei-<;'i, 
 
 ,^e of olitaiiiint; "'« 
 
 ,f ErtiwiiM, ill tlie 
 
 ami t'lat 
 
 H'kwoiiil. 
 
 rsou who is not a 
 ,n accommodation 
 the re(iuirements 
 
 a l)ank will d'^- 
 
 pt. 4th, 1900. 
 Dollars, for value 
 
 BEECHEK. 
 
 70. Almost all commercial papers have either "or hearer " or " or order" after the payee's name. 
 If the payee sells the paper, or to use the language of husiness. if lie negotiates it, he will not need to 
 put his name on the back if "or hearer" ajipears, hut if "or order" follows his name he must put 
 his signature on the liack. An indorsement is the name given to his nI'Dinlnri^ and nn;/ i/ther ii-Di-tls 
 he may choose to add. It guarantee* to the new holder that the hill or note is regular and complete. 
 It is also a veiled promise that should the principal debtor fail to pay, the indorser will become respon- 
 sible for the payment. 
 
 71. A Blank Indorsement is a .simple signature. See No. 1. After it is put on the bill la 
 payable to bearer. 
 
 72. A Special or Full Indorsement states the name of the indorsee who becomes the next 
 holder. The object is to make liim indorse btfore he can transfer the bill or note. See Nos. 2, 7, 8. 
 
 73. A Qualified Indorsement is one made to escape the responsibility stated in 7'*. When 
 a person is forced to indorse, or when he sells a bill or note of doubtful value, he will indorse like \o. 
 'A if the purchaser will accept such. 
 
 74. A Restrictive Imlorscment prohibits the further negotiation of the bill or note, or expresses 
 mere authority to deal with the bill as thereby directed. See Nos 4, 9. 
 
 75. When a partial payment of a note is made, a separate receipt should t)e given and an indorse- 
 ment on the back of the note similar to No. 5 should be made. 
 
 76. If one man indorses for another to enable the latter to borrow money on the security of two 
 names, he is said to accommodate his friend. A suitable indorsement is shuwii in No. li. 
 
 77. When one bank iutrusts another with the collection of a note or draft, the indorsement 
 shown in No. 7 is the one most commonly used. 
 
 78. When a business man gives a bank his business paper, due at distant points, to collect, the 
 correct indorsement is shown in No, 8. 
 
 79. When sending a clerk with cheques for deposit, or even carrying them personally, it is well to 
 write the words above your signature as shown in No. 9. 
 
 80. If the maker of a note fails to pay, the holder may demand payment from any indorser, and 
 any indorser who is forced to pay may seek compensation from any previous indorser, but not from a 
 subsequent one. 
 
 81. If the acceptance of a draft is refused, or if payment is refused, the drawer stands in the 
 position of a first indorser. The other indorsers are liable in the onler in which their names appear. 
 
 82. If an indorser or drawer is not notitied of non-acceptance or non-payment on the exact day 
 he should be, the l.aw will excuse him of his liability. Therefore is it of great importance to watch 
 the maturity of indorsed notes and of drafts. 
 
 83. If the payee's name is mis-spelled he may indorse with the same spelling, or he may indorse 
 with the correct spelling, or better, he should sign with both. 
 
 84. An indorsement ought to be written across the back, above the middle, with 
 the left end up. 
 
 '^vO 
 
 ^ 
 
 . e 
 
 -^ 
 
 ^Si 
 
 V 
 
 ■^ 
 
 ■ V) 
 
 ' o 
 
 >^ 
 
 
 
 a' 
 
 K 
 
 
 
 
 
 
 ■^ 
 
 ^^^ 
 
 ■«J 
 
 « 
 •^■-i' 
 
 ;^ 
 
 <J 
 
 
 Ai 
 
 
 O 
 
 •»s', 
 
 
 * 
 
 ^. 
 
 >i 
 
 4 
 
 ;; 
 ^ 
 
 
 ■A. 
 
 ■^s 
 
 
 
 
 ^ 
 
 w 
 
 
 
 a 
 
 •«.j 
 
 >> 
 
 
 ■ w 
 
 e 
 
 t^ 
 
 ^ 
 
 y 
 
 v 
 
 >^ 
 
 Ct 
 
 
 
 
 '^SJ 
 
 ■ -i 
 
 ^'^ 
 ^ 
 
 • > 
 
 A 
 
 S 
 
 
 «v) 
 
 4irf 
 
 ^ 
 
 S 
 
 
 
 
 
 
 
 
 
 t 
 
 « 
 
 
 
 
 tn 
 
 --^ 
 
 c 
 
 
 tt 
 
 
 o 
 
 
 *9 
 
 >n 
 
 9. jfot Deposit. 
 
^^^mm 
 
 ^Mi 
 
 14 
 
 KXKIK'TSE IV.— I)i;.\WIN<; NOTES. 
 
 I'siiii^ (|u.irti'r slnicts of f(inl>,ciiji, wiiic iiolt-. tVoiii tlic tnllnwini^r (latii, .\t tlif top of fucli writ<! tins due 
 tlittc. I .s(' voiii- ]i|;i(i' iiiiil ciirrcnl d.ilc where necessary. 
 
 Makkk 
 
 I . ^'o^^t•selt' . . 
 L'. N'onrseir . , 
 
 a. S. ('. |)eall 
 
 Tl.MK. 
 
 Paykk. 
 
 J.NDOKSKIl. 
 
 liO (lavs .... 1'. I •oiio\ ail iV Co 
 
 f)ll (ieliialld . r.,illk of' 'I'olcillto 
 GO davs .). Cole 
 
 4. F. .M. .Milne.. .. 3 nios K. .Murray 
 
 f). F. O'Koiirke. . ..' Villus ' 
 
 ! ! 
 
 C. .M. ( 'owan I nuis ' 11. C. Fov 
 
 T. .1. Dav .. 
 
 ■Jmi Indoksek. 
 
 I.MXJiiSEF. 
 
 .7. C. C(.ok 
 
 Yourself . . , 
 Yourself . . . 
 
 Youi'seif . . . 
 
 Fack. 
 
 •^ 2i;} 
 
 40 
 
 2000 
 
 
 1S7 
 
 12 
 
 C,-2i 
 
 
 :\-2:> 
 
 40 
 
 720 
 
 
 7. Pi'epare f(.r S. 1'. Koeley your note ai two months, l>earin<,' interest at !^'. payabh! at 'I'lie Standard 
 I'ank, for baliiiH f Noiir account, ^i^l.'Ii), 
 
 8. l>raw a note in your own favor, maker II I >. .laeohs, l)earing interest at fi"/ for 81000, dated Jan. 
 Gth, 1900, at (i months. On it appear indorsements for ,?150 ]\lar. 6, 820'^ oNIay 0, 8."00 June G. Write the 
 indorsements and sej)arate I'oceipts. How much is <luo on the note when it matures? (Time b}' months.) 
 
 9. l''oui- not(>s are drawn at two iiionths an<l ail mature; ]\Iaroli 3, yet no two are dated the same day. 
 Exj)lain and write tlu; days of dating. 
 
 10. In March, 1900, four not(>s were drawn, each at thi"(>e months, oiu^ on each of four consecutive days, 
 and all matured the .saiiK! day. AVhat was the day of maturity .' Write the days of dating and explain the 
 eircumstance. 
 
 TT.— DFvAFTS. 
 
 85. A'eryfew jx^ople are as anxious to pay their deljts promptly as tlioir creditors are to h.ive tliem paid, 
 conse(pienlly ci'editors usually take the initiative in settling accounts. 
 
 Where a debtor and his creditor live in the same place, or where they meet personally in a business way, 
 the creditor mav re(|iu'st the debtor to gise him a wi'itten prcjmise for the; amount of the deld. I'nder such 
 circum-^t.inccs the written promise will take tiu; I'oi'in of a note. 
 
 Where the debtor and creditor live in dili'erent i)laces the creditor may write a, letter and inclose a note 
 t.o b(! signi.'d. 
 
 lUiti tiie usual practice is to issue <( 'Ini/t which not only does for the letter, but which, if signed by the 
 debtor, acts in all particulars as a note. 
 
 86. 'llie order, with or without the debtor's signature, is called a draft. 
 
 87. AN'luMi t-!i(i debtor puts his signature across the face of the order, the combination is called an accpt- 
 anrr. TIk! name is derived from th(? word "accepted," which it is customary for the debtor to write above 
 his name. 
 
 88. Creditors do not send their drafts I mail th(>msel\es. 'Fhey entrust them to banks, w ho make it a 
 special branch of their business to transmit tliese papers and .send ine.s.sengers with them direct to the debtors. 
 
 89. Many drafts are reepiests to pay the bank wdiich lirst undertakes to transmit the paper. 
 
 Others arc; direct recpiests by the creditor to pay Jimself, and on the back is his indorsement authorizing 
 the bank to take the paymtJiit in his behalf. (See page of indorseinents, Nos. 7 and 8.) 
 
 Sometimes, but (juite seldom, drafts are retiuests to pay some third party other than a bank. 
 
 I 
 
 t| 
 
 dj 
 o| 
 al 
 tf 
 

 J'lirm (if I>r<iO, 
 
 
 //j YfM^f 
 
 //'^'J9^'t^€l 
 
 ,o 
 
 '^.ffuMy 
 
 %//hv fP^ ///t'/'/r/^/. 
 
 7 
 
 Jo 
 
 
 -/r^L 
 
 p^^mf//?^. 
 
 /yav>r^/^/ ^ 
 
 /.-// 
 
 %^- 
 
 4 
 
 I 
 
 I 
 
 90.— Parties. 
 
 1. Drawer. 
 
 2. Drawee. 
 
 3. Acceptor 
 
 4. Payee. 
 
 / 
 
 same ]ii>rsoii. 
 
 lie iierHOii. 
 
 )rser. - saii 
 
 6. 1st Holder. J 
 
 7. Indorsee. 
 
 8. Holder in ])ue Course. 
 
 91. -Parts. 
 
 92. -Events. 
 
 1. issue. 
 
 2. Negotiation. 
 .3. IiidorseiiH'iit . 
 
 •4. I'resenting for A(;ceptance. 
 
 .'3. A (•(■(']) lance, or 
 
 G. I )ishonor. 
 
 7. i'lesenting for Payment. 
 
 1. Face - 1'' roll t. 
 ■^ Face — Amount. 
 .3. Back. 
 
 4. Date. 
 
 5. Body. 
 G. Signature. 
 7. Acceptance. 
 
 8. I)iscliai'ge, or 
 'J. Dishonor. 
 
 93. The Drawer is the ei'editor wlio i.ssues the draft. Drafts are sometimes issued when there is no 
 indel)t(Mlness between the drawer and the drawee. Sometimes ?, person draws a draft with the expectation 
 that he will have funds in the hands of the drawee befoi'e the draft will he presented to him for acceptance or 
 payment. See also the bills of exchange on page 21, where the feature of indebtedness is not considered. 
 
 94. The Drawee is the debtor. If the drawee accepts the order he writes his signature across the 
 face and is then known as the acceptor. 
 
 95. The Payee is the one to M-hom the payment is to be made, usually a bank or the drawer himself. 
 In those us(h1 for money (s(>e page 21) and a few others, the payee is some third party other than a bank. 
 
 96. Holders and Indorsers have the .same duties, rights, and responsibilities as similar parties to note.s. 
 
 97. Of the parts, the acceptance is tlie only one that requires explanation. Tt should be written 
 In ink of a conspicuous color. — usually red. The simjile signature of the drawee will d(j, but almost invariably 
 the word "Accepted" is written above. For drafts beginning (1) "At Siglit" (if accepted), (2) "Thirty 
 days after sicjht," the dfite must be put in aljove the signature. A draft that is payable a certain numlter 
 of days after date will become due without being accepted. However it is advisable to have such di-afts 
 accepted, as this at once makes the drawee responsible. The drawer sometimes has the option of deciding 
 the place of payment. He should make it payable where lie does his banking. 
 
 98. Presenting for acceptance is the duty of the holder. If a draft payable on demand or at sight 
 is not presented within a reasonable time, the drawer and indorsers will be discharged from their liability. 
 
It; 
 
 99. Dishonored is tin- tfrm applied l(» II (Irat't wIumi acri'iitiiiirc liii.s Ihtm n-t'u.scd, or if acccptiitu'*! Iwis 
 l)Pon f5iv('ii ami p.iyiiiiiit at a HiiUscniU'iit datt! is icfusfd, tint holder must notify tiie diawor and iiidorser» 
 of dislionor. If lie ncyli'L'ls to jiotif'y tiicin not laitT than ilir next day, tliey uro discharged. 
 
 100. Protest. If the hoidir desires to iiiak<' a formal exposure of the dishonor he will employ a notary 
 public, who will take the matter" ill hand and again present the hill for aceeptanoo or payineiii, us the case 
 may l)e, and having heeii refused or having received no answer, oi' if th«i proju-r jx-rson cannot, Ih! found at 
 th(! right, place, he will record the facts regarding his ed'orts and w ill send copies of the .same to the (h'awer 
 and indorsers, stating to them that, tliey will lu; held n^sponsihle for tlie face with interest and all expenses 
 connected therewith. 'J'his course at law is called jimfi'ntiity, and it api)lies to notes and cheques as well as drafts. 
 
 101. Most drawers do not wish their drafts protested ami the lilank foi-ins on a- banker's counter usually 
 have a perforated stiili c.illed tvnicn of jirotcst, attached. Tf this is left, on, the holder will not pidtcst. 
 
 102. The law icgarding indoisement of notes applies fully to ch(!(|ues an<l drafts. 
 
 103. riie drawer of a cluMiue or' draft is in the .same position of liability as the first indorser of a note. 
 
 104. A person who is away fr'om home and finds himself without money, may telegraph a well known 
 firm or a banker to honor Ids draft. A favoralile telegi-am in reply will be taken as an acceptance of the 
 draft, and it may then he di.scountefl at a bank and the proceeds handed over to the needy traveller. 
 
 105. Wording of Drafts. 
 
 S802.29. 
 
 /, Siijht Draft. 
 
 Siilijfct to three days of jfraco if fircepted. 
 ])iir of till/lit. 
 
 Toronto, Muy 25t]i, 1000. 
 
 At sje-jit pay to tlie order of 
 
 THE STAXDAJU) HANK OF CAXADA 
 
 27i7'<'r Jlundrvd (did Tiro'^'^'^'-'^ 
 
 for value i'eeei\('d .•iiid cliariic to the account ol' 
 
 ■J!) 
 ILIII 
 
 Dollars 
 
 To Messrs. W. A. Varney (0 Co., 
 
 ChafluDu, 0)1 1. 
 
 B. C. SMITH. 
 
 S65, 
 
 2. DiniKunl hraft. 
 
 Xot to lie accepteil ; iimst lie iviid or refused on jireaentatioii. 
 
 Due on di'inand. 
 
 Toronto, May l,5tli, 1900. 
 
 On demand pay to tlie order of 
 
 TirF CAXADLiy BANK OF COMMERCE 
 
 Sixty -five '-^f^^"'^""'''"^^ ' "" ■''''''"T"'^^"''""'''?'^':^'!^^ 
 
 Value received and cliarm; to the account of 
 
 To J. P. Brooks (0 Co., 
 
 Brantford. 
 
 C. P. ROGERS. 
 
n 
 
 .i. Tiiin: Ihii/l ({thr S!;/lil. 
 Til Im iwofplfil, !iii>l acci'iituiicf iliiti'l In onlir llwl Hi.' Iliiju iiiiiy liciflii to niii. 
 
 8I()0. 
 
 'I'dUoNTu, Juiit' Isl, lUUO. 
 
 Tliirtv <l;iys ;iri.i' siu-lit j»;iy tn tin- uriln- ol' 
 
 orV/NAVJ'A'N 
 
 I'or valiK' r ixi'il iiud cliar^'c to tlic iiccouiil <il' 
 
 I g " I 7o X />. [f;ii, 
 
 i • (jKlKtira. 
 
 B r. ti H ^' 
 
 .? • . :> ® 
 
 is^ a — ^ r-, V; 
 
 ^^ £ -t >. 1. 
 
 8 W S "" u: 
 
 /'. />. CAMI'lll'JJ. ((• Cr>. 
 
 J. 
 
 
 ^. 7V//;(? Ih-iifl —ii/l- r Ihitr. 
 
 Usually i.rescntLMl for a-rei-laMcc, l>iit .uuT-ptiiure .1 nut l.e .ULmI. TiiM- liru'Wis I., run fnn.i tl.u .lute at th« top. 
 
 oiiT- ToKoNlo, .luiic ls(, 1!)()0. 
 
 
 ^ W '^ 2 ^ (^nc JImulrcd and Scroityifirc 
 
 s ^ 
 
 J - 
 
 3. 
 
 Tliivc iiiontlis aftiT iluU' pay to llu' onk'i' of 
 
 JAMES PAT K list >X 
 
 I'ov V!ilut( rc'CiMVi.'(l ami cliarye to tlit; account of 
 
 I ^ To M. ./. Oirti'7' (0 Co., l>- i)' I'iPl^li- 
 
 tj CoUinqvood. 
 
 KXKIJCISK v.— DRAFTS. 
 
 1. {a). P. D. Campbell k Co. would have to indorse Draft No. 3 siLove Imforo intrusting it to the hank. 
 Consult page 13 and then write the pix.per indorsement. 
 
 (h) If the bank had no branch in Oshawa it would likewise have to indorse. Write the indorsement. 
 (,•). After the acceptance would the draft 1)6 held in Oshawa or would it Ije returned to Toronto] 
 
 2. {a). For Draft No. 4— if James Paterson lives in Collingwood should D. D. Piper send the draft to 
 him directly bv mail or indirectly by the l^ank ? 
 
 (h). If James Paterson lives in Winnipeg, do y.m think D. D. Piper took a usual In.smess way ot paying 
 
 one debt and collecting another 1 
 
 3. Write drafts for the purpose of collecting the following debts : 
 (a). J. P.. Haskin, Belleville, owes you $3G.40 on account, due now. 
 
 (6). IT. K. Evans, Ottawa, owe you $265.S0 on account ; terms 30 days from now. 
 (c) P J Sullivan .t Co., Clinton, owes you $18G.20 ; terms two months fnmi now. 
 
 \d) V. K. Anderson, Simcoe, bought from you a bill of goods amounting to $172.25, on four months' 
 credit, but you are to give him six months by post dating the draft two months later than now. 
 (A M. K. Nelles, Orangeville, owes you $68.40 ; terms net cash. 
 4. D. C. O'Hara, *Limehouse, owes you $48.36 ; terms one monthjrom now^ Fillout anote forhim tosign . 
 "■^ "^t is verri^nVeiiieiit to draw drafta on persons who live in places where there are no banks. 
 
18 
 
 III. ('iiK(,iii:s, 
 
 106. A ( lici|iif is (III oi'il'M' <iii a Imiiki'i' I" |iav a sinii <<( iiMiiicy mi ilciiiainl. 
 
 Fitrni !>/ Cir/iji'il r/n-i/ne. 
 
 \ 
 
 
 K^ '. No. ..^/ ^/ -^^ -^% <A^ -^^^ '''^'^^ 
 i?)^^l" z/ALt/'/,^C( ^A )K^ — - ----- --,^-^=-^.=r^-— J;£; Dollars 
 
 J,S'V 
 
 107. 'I'lio ])!irli('s 111 a t'li(M|Ui' arc tlwj saiiii-, an. I ai'o ktiowii l)y tlic saiiu! naim-.s a.s tlKt.so coimci-tcd with a 
 draft. 'riKMJiawt'i' is a iJcposilDi'. TlKMlfawcMt is tliol)aiik ur 1) uikrf. The payt'O is any tiiird pai'ly to whuiii 
 till) draw I'l' wishes to |>;iva >\\\\\ of' iiiuiicy. '\\w jiayi'c - iiidi'ss tho rh('(|ii(^ is payaliic to ln'ariM'— should 
 endorse 1 in- cIkmiuc in .sonic mi i Lai ilr iiiaiiiicr it" lie docs nob cauli it at t lie hank on w hich it is (has\ ii. 
 
 108. 'I'hc [laits of a, cIkmiiic arc the same ;i,s the pai'ts of a drat'l. 
 
 109. Tlic cscnis liiat may trarispii'c arc di.sou.s.sod under ihc hcadim,' of .lraf(s. 
 
 110. It a h.ink iia\s a hirycd clic(|Ui' il will Iiavc to hear llic loss. 
 
 111. It' 1 hank jiavs a /v//'.sv'/ chenuc it will also lia\c to hear tluj lo.ss ; that is, tho liank cannot chari,'c 
 tlic. drawer hn- a lar-.^cr sum than the oriLfinal amount. I'-nt it' it cati 1)0 shown that tlin (h'awei* is ,so carclt;.ss 
 ill drawim,' clic(|iies as to ifi\c oiiport unit;.' to a forL.'cr. then the di'.iwcr inust hear the loss. 
 
 112. ("on.se(|uen(lv, il is nercssarv to lill u|i the line preceding "hollars." If the words of the; ainounl 
 do not do .so a liea\y wa\V line or a set of crosses should he put o\cr the spare .space. .\lways heeiu to 
 write theamouni as jar lo thi' left as possihlc 
 
 113. I'nless .a clic(|ue is pasahlc to liearcr a hank is i'es]ionsihle iu a husiness way to tlie drawer to pay 
 the chc.|ue to llu; jiropcr payi-e -consc(|Uently th • care exerci.scd l)y Tellers in having sti'aiigers identitieih 
 
 114. To miiuiniz(^ this responsihility hanks try to liave as many of their eluMpics payaide to Ijearer as 
 ihev can. All iliu hlank eheiiues on their counters liuve "hearer" following tho hhmk line reserved fur the 
 payee's name. 
 
 115. 1 >rawers of such cheiiues (jfleii want them foi' receipts and usually cross out " hearer " and write 
 order ahovo it. 
 
 116. Manv husiness houses have private cheipu! liooks witli "orch-r" printed on all hlanks. If, 
 however, they w ish to write out a chccpie payahle to hearer ihey may cro.ss out ''order ' and write "hearer" 
 aho\e it, lait^ they must inili.d the change. 
 
 117. C'iie(|ues may ho antedated or post-(hite(h If ante-dated tli(>y may he j)i'esented for payment any 
 time. If post-dated the}' are not payahle till tlu' day of dale ari'ives. 
 
 118. As s,„,u as w. l)anker knows that a man is dead or hankrupt lie will refuse to })ay all cheipies out- 
 standinif. 
 
 119. Should a hanker refuse to j)ay a che(iue tho party to ]>e sued is tlie maker or indorser. 
 
 mmmmmm 
 
 ■«l»>»««8>il*— ■ ■■« llllMII I * I I WI''"* 
 
 ■S 
 
10 
 
 120. Certified Cheque. Wlinn y<m wish tho puyre t«» he uhsoInU'lN rliiiii tlml tli<' clu'-in.' isiill li^'lit 
 
 ami wiu'lK, j.uHl, .L.^iurs, ..t' whidi tln^ illustnition is nn rsampl., iin- iim-.I Tli.-y aiv call.-.! ,: r/lji>i/r/i';,„rn. 
 Unihvay stad.MMi-.'i.L.s will i.ol, tako ..ih.T kiii.ls. Tli- .liaurr y.-ls tlu- lr.li,'«'r l<''«-|"''' '" ^^-'i'"!' '^''*' '"'''''' 
 llinii, asshuNMi ill tli.s illiHlmti..n. Tlw aninui.l, ..f thr d.r.|iir is lli.'i, .■l.ai-r.l up to tli.- diawn- as if it, 
 1,„,| \„-rn paid. SdiiH'tiiiK'S a pay<'<-. if Im- ii.i.'ii.ls to iir^otiato a cli.'.iu.' ..,• nniii I,. I. in priiuripal, will Inkr it to 
 li„. JMiik, and, iii^lisid uf .•asliiii'4 il, ns ill li.isc \l iirrr,,!,;/ ill llir iiianii.T Nhnuii. 
 
 HXKHcisi; VI riii:<,>ri:s. 
 
 MaktM.iil «'lic(|iics uii ihc hoiiiiiii'.ii liaiik for ilic foUnsvin^' ; 
 1. 'I'., p.iy .lames Sulloil iJlL'.SU. 
 
 'J. To pav C. 1). Cavers i?! f.'JS. \Viit<' it no lliat- lie must cikIoin.. l.cfoic ttit! l)aiik \\ill piiy lln' .■lu><iue. 
 ;]. To p.iy M. M. Wilkic si') i\.v a moMlirs house rent. insert a line so tiiat tli.- returned .•lie.pi.> will 
 act as a receipt, f.>r rent in full to .late. 
 
 I. T.) enaldi' you i.> with. Ira w S|0 f.ir y.air ou n use. 
 
 IV.— OUDKllS. 
 
 121. A n.eivanlilo order is a re.piost f..r the .leliv.-ry ..f «o..ds soiiiet iiu.'s f..r in.Mi.'v. It n^semhles a 
 Inter an.l is l.'ss formal than a draft. It is indeli.iite al..,ut tii.i." and d.-es not r.'.piin, a written 
 
 a.veptaneo. A pers.ai issuin- one will not d.. s„ unless he is vrv eertain that his , nest will he eomphe.l 
 
 with. lb is eust.miary for tho drasv to disp..so of the matt..r pn.mptly, hut when thoonler ,s f..r the 
 
 paymoiit of a sum of m..ney, sometime le may ask th.' pave., t.. wait a f.^w d,iys. 
 
 Forin. .;/' "/' Oi-'/i r. 
 Th.! f..lIowin.4 lorm sh..ul.l h.. writt.'i. on .a small sh-eL of laisin.'^s letter pap.'r. 
 
 \\'o..l)STo(K. .Inly I.'ith, I'.lOn. 
 
 Mr. ('.!>. Mah.m v.ill pl-.ise pay to the or-l.'r of 1 ». V. Vnhm, T.m I '-.liars in .y U from his .st..ro 
 
 l;, W.\LKl';i! >v (.'(). 
 
 111. I chart,"' to til.' ac.'.iu.it of 
 
 Wool.. ST. .IK. .Inly I.Jth, r.XJO. 
 
 To h. I!. (1 11. FORD, 
 
 Please let -Mr. .I..hn llarmer liav.- T.'ii 1 >ollar.s, and ch.ai'p' D my .uvount. 
 
 r i). i»()r(^.i.As. 
 
 V._I)ITK HILL. 
 
 122 NVIh'11 a.ljustin- au a.'cmnt a merch.aut somefim.'s owes a cust.imer a small l.alance whi.'h it 
 i.s int.'U.led that the ou.stomer will deal out in -.".ds. A written a.'knowled-m.mt ..f tho d.'l.t is cdled 
 
 a ill"', hill. 
 
 1 
 
 C\)I.I.IN(iWo.>l), .Inly l.'ith, I'.iOi). 
 
 1 »ue Mrs. a. 1). Moore, Four Dollars and fifty-nine cents (.$4.59) in -....Is fr.mi the sto.v. 
 
 1). L. SCIIKLTZ. 
 
 2 
 
 Prkston, Oxt., .Fuiie .')th, I'.tOO. 
 
 Due.T V Smith or order, Ten Dollars, for balance of month'.s wages ; payable in goo.ls from my store. 
 
 E. F. MASON. 
 
i flass do 
 inontlily 
 11 of the 
 
 20 
 
 VAllT III. 
 
 I)EAr;rN(! with JiAXKS. 
 
 123. T'>iinl<s lifivc tlu'fc classes of depositors. 
 
 (1) Depositors on current ;Lceoiint. 
 
 (2) I )e]ii)sitors in savings l)ani'C. 
 (.'■?) Depositors on deposit ve(;eipt. 
 
 124. 'I'lie first eliiss Iwive tin; privilei^e of issiiini,' eliPfpies })ut do not receive iiiterest. Tlie seeond 
 not issue eliecpies exeept in tlieir own favor, l)Ut tliey receive interest evc^y six montlis on their 
 l)alances. The tliird class lend the l>ank one definite sum, n^eeivc a written promise for the retur 
 nionev, and will icccivi^ inlertist half-yearly. They have not tlio privilege of issuing checjues. 
 
 1. Current Account. 
 
 125. A'anuf.iclurers, wholesale and retail merchants, liuyers of pro(hiee, treasurers of corporations and 
 financial institutions and husiness men in general, are depositors on current account. 
 
 126. Opening an Account. — When a person decides to open an account with a hank he applies to the 
 manager for the jirivilcLre. Jf a finorable arrangement is made and a rate of discount agriM-d upon, lie will 
 he required to jait his signature in a hook provided for the purpos<! ; liis first d(;})osit will he aec(>pted. and he 
 will he gi\'en a liank jiass-liook. 
 
 127. The Bank PaSS-Book. - The amount of each deposit will he set down on the left page with the 
 ledg(M'-keei)er"s initials following. At the end of the niont,h, the hook will lie asked for, and on the right 
 page will he set down the amount of each cht>i|ue paid ; the hook will then be haliinced and returned. Homo 
 of th-! cheiiues issued may not have been presented for payment ; the baid<'.s account and the customer's 
 account niav and usualh' do not agrei;. 
 
 Bank J'ans Book. 
 
 H)i\ 
 
 EDUCATIONAL 
 
 BANK, in acrf. 
 
 xvilh 'VJ 
 
 . a. 
 
 muMj-t. 
 
 
 
 i£r. 
 
 DATl;. 
 
 DEPOSITS. 
 
 AMOUNT 
 
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 Keepers CHEQCES. 
 
 CHEQUES. 
 
 CHEQUES. 
 
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 128. Deposits. — The money that Ijanks will receive for deposit at face value is called Cash. It comprises 
 Caiuuiian silver coins, Canadian bank bills, and all forms of money coders payable on demand, in the town in 
 wliich the deposit is Ix'ing made. See tlie forms of negotialile money on the next page. 
 
 !l 
 
21 
 
 ('(•f>n(l class do 
 their iiioiitlily 
 retui'u ot the 
 
 poi'iilions and 
 
 applies to the 
 upon, lie will 
 (>l)t('(l. and he 
 
 pag(i -svilh the 
 
 on the right 
 
 urned. Some 
 
 lie customer's 
 
 Cr. 
 
 CIIEQl'ES. 
 
 r: ;l ii 
 
 ;l r, 
 
 7 
 
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 It comprises 
 n the town in 
 
22 
 
 129. Cheques.— If tlio l)al<ancc is k<'pt up by deposits all regular clioqufs issued will lie paid when 
 properly pres(^iiletl. 'J'liose tliab are certili(!(l will be charged up in the bank s ledger l)eforo being paid. At 
 tlie end of the month all chei^ues that) were paid will he handed back to the customer and a receipt taken 
 from him for tiiem. 
 
 130. Notes and Acceptances. — From the time lie becomes a depositor on current account the 
 customer will pay no more of his business papei's at his own ofHce. Every note he signs and every draft 
 lie Jiccepts will be made payal)le at the bank where he keeps his account. The banker will pay all such 
 notes and acceptfuices without consulting the customer. At the end of the month the business paper paid 
 in this way will Ix; returned with the cancelled cluMpies. 
 
 131. Cheque Book. —The bank supplies each customer with a book of blank cheques. At the end of 
 the month the cancelled clienues are pasted on their original stubs. These original stubs may bo used as a 
 book for keej)ing a record of deposits and checjues issued. Such a record will be a check on the entries in 
 the bank pass-})ook. 
 
 132. Keeping up Deposits— Discounting. — Heiail merchants usually get enough cash in their daily 
 sales to keeji tln-ir account with the baidc from l)eing overdrawn. Wholesale merchants have very few cash 
 sales and coMse(iuently th(>y must pursue a different course?. They may get ten, fifty, or perhaps one hundred 
 notes or uccejuances in a day ; these; run one, two or four months. If indorsed, the banks will acce[)t these 
 as deposits at a valuation less than their face; f)^,, C, or 7 J, per cent, is taken off for the ninnber of days, 
 till maturity. A Hrm getting the face less 5| for four months is one of good financial standing, doing a large 
 business. ^Manufacturers who sell to wholesale houses and jobbers are about on the same footing as the 
 merchants themselves, and do their banking on the same plan. 
 
 133. Keeping up Deposits —Collateral Security. 
 
 (I) F(iiiiiii\s' Ae/'.v. -Manufacturers of farm implements sell to farmers on lien notes (see page 12). 
 These notes are not \ovy suitalde for discounting, as farmers are not jirompt at paying at maturity. The 
 manufacturer, instead of <li<counting, in lov.'^es and j^h'ices a number of them with his banker, as security for a 
 loan. Tiie customer will make out his own note for an amount equal to al)out two-thirds or three-fourths of 
 the a"-'ne"-ate of the farn..;i's notes, and have it discounted. Tf he fails in business and cannot iiav his note 
 the banker collects sull'icient of the farmer's notes to pay the debt. 
 
 ( .' ) lilDx i<l' /.a'/liiij. -Shippers of farm produce, of Hour, of grain etc., get shipping bills, called ])ills of 
 lading, fi'om the railways and lake cuii'iers. To these bills the shipper attaches sight drafts on the consignees 
 for the aiuninit of the merchandise shipped. He then discounts the drafts at the bank. The bank then for- 
 wards draft and attacheil bill of lading to the place where the goods were sent. Jf the purchaser pays the sight 
 draft, he gets the bill of lading, and with it can claim the goods, ))ut unless he pays he cannot get the goods. 
 
 (.:) ]V(i,''liiii(se llri; ipt.K. — Persons having goods stored in a warehouse can get a receipt from the owner 
 of the warehouse, and, 1)y handing over the receipt to the bank, can borrow money from the bank nn a note 
 I qual to about two-thii'ds or three-fourths of the receipt. 
 
 ( 'i ) JJoiKi,-,, iiiofti/ui/cs, stock crfijii-atps ttnd ordUntry votrs are often given as collateral security for a loan. 
 
 134. Banks ■will lend money on business paper on which thei'e are two or more reliable names. Some 
 men, therefore, keep up their deposits l)y discounting accommodation notes. 
 
 135. Banks will not lenil directly on mortgages. 
 
 II. Savings Bank. 
 
 136. Persons who are not in business and w ho wish to put money in a bank, should, upon entering the 
 l)aidv, address the Teller and make a recjuest to deposit the money in the savings bank departinent. If the 
 depositor can make out a deposit slip (s(;e page 2^) ho should do ,so, but if he cannot make it out correctly 
 the Teller will attend to the matter. The signature of the depo.sitor will then be taken and a savings bank 
 pas.s-book issued to him. Tf the depositor wishes to pay anyone from his funds on deposit, he nmst not 
 issue a cheeiue, but must go personally to the bank, take his pass-book and make out a withdrawal cheque 
 (see next page) for the sum required. 
 
 i 
 
 1 
 
 i 
 
 <. 
 
 •J 
 ■J 
 
 i 
 i 
 
 4 
 
 < 
 
 •c 
 
 Lss 
 
 'mmm 
 
23 
 
 Fovin of Withdraivccl Jieceipt or Cheque. 
 
 .zs~. 
 
 EDUCATIONAL BANK OF" CANADA 
 
 V 
 
 SAVINGS BANK DEPARTMENT. 
 
 yy. 
 
 ._>^!^^^r<2^«W2-^,^^ c^/^ci^n€i^ Me'Jfmi. 
 
 'yyii' 
 
 /0/2^ 
 
 '^^c^aa^ 
 
 /&4e^ r/mrtM/Z/U^'.a^xvun/'.ypr <^ 30 h. 
 
 A^.a /?. 
 
 Form (if S<(i'iii;/-'^ I'xmk Puxa- llooh. 
 N.B. -Money cannot be withdrawn without this Pass Book 
 
 Xo. 5300. SAVINGS BANK DEPARTMENT Folio ^,^o. 
 
 EDUCATIONAL BANK OF CANADA 
 
 Deposits are subject to the foregoing Regulations 
 
 It.vir. 
 
 
 i>AUTic;iJr,Ai;s. 
 
 IsniAi.s. 
 
 cllKQl 
 
 i y' 
 
 DIII'OSII'S. 
 
 r.Ai.ANci;. 
 
 1900. 
 
 
 
 
 
 
 i 
 
 
 Aug. 
 
 3 
 
 ])('p. 
 
 S. ' 
 
 i 
 
 
 1 
 
 50 
 
 
 50 
 
 
 « 
 
 5 
 
 Ck. 
 
 s. 
 
 10 
 
 1 
 
 
 
 
 40 
 
 
 (( 
 
 15 
 
 Dep. 
 
 s. 
 
 
 
 100 
 
 
 140 ; 
 
 « 
 
 20 
 
 Ck. 
 
 s. 
 
 34 
 
 20 
 
 
 
 i 10,') SO 
 
 III. -Deposit Receipt. 
 
 137. A person having one large sum for deposit and having a prefer^Mll•o for a good iclial)l(! doruiiicnt as 
 evidence of his claim against the bank, may auk for a deposit receipt. Wlieii any of the money is recjuired 
 or when any more is (ieposited, or when interest is added, tlie receipt must be surrendered and a new one 
 issued in its stead. Most banks do not issue one in a montli ; but in some localities tliere is still (juite a pre- 
 ference for them, and half the depositors will Imve nothing else. The form below is reduced to about three- 
 fourths its original size. 
 
Willi <I'M 
 
 24 
 
 Form of Deposit Jtecelpt. 
 
 
 
 y// 
 
 
 c'yy 
 
 Manager. 
 
 Form of De^josit Siij) 
 
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 EXP]RCISE VIT.— DEPOSIT SLIP. 
 
 Fuh and m<tki' out deposit slips for the foUoiriiiy : 
 
 1. J„ly 1.3.— Deposited 10 $1 bills, 4 $2 bills, G 8o bills, 1 cheque, $316.20. 
 
 2. .Tilly 15. —Deposited 6 $10 bills, 4 cheques, $36.10 ,$4.75, $2.1G, $3.25. 
 
 3. July 17.— Deposited 5 $1 bills, 3 $5 bills, 1 $10 bill, $12.70 in silver and 1 gold $20 piece. 
 
 I 
 
^^ 
 
 CHAPTER II. 
 
 YxVLUES. 
 
 
 ■te^^ 
 
 e'ty 
 
 2na/jer. 
 
 
 <o 
 
 I. WEALTH AND LABOR. 
 
 1. Exchanges. — Man's eagerness to possess articles useful or agreeable is one of the most striking 
 characteristics of human nature. But tlie desire to liave and to hold is fully ecjualled by the desire to 
 exchange — to exchange the comparatively superfluous for the comparatively necessary. 
 
 2. Primary Values. — The primary values used in these exchanges are labor and wealth. Labor is 
 either mental or physical, or what is the same thing, nervous or nuiscuiar. By wealth, we mean all articles 
 useful and agreeable which pos-'^' an exchangeable vrdue, except those which caii be obtained in the quantity 
 desired without labor or sacru We exchange labor for wealth, wealth for labor, labor for labor, or wealth 
 for wealth. 
 
 3. Labor. — By laljor we do not mean merely the work of a man commonly known as a laborer; the 
 term must be accepted and applied in its very broadest sense, so that it will include the work of companies 
 of num, and of individual men in all stations of life. The la\\y('r, the doctor, the teacher, the })aiiker, 
 the entertainer, the clerk, the railway, the employees of the factory and of the farm, are all laljorcrs who are 
 exchanging their work or their skill for the world's wealth. 
 
 4. Wealth. — Tt is imjiossible to enumerate the articles that men esteem as useful or agreeable, but a 
 list of them would include ail the articles we find on the shelves of our merchants, the pi'oducts of the farm, 
 of the forest, of the mines, of the seas, lakes and ri^•ers, of the factories, and, in fact, eveiy article that is the 
 product of nature or of man's labor which is esteemed to be of value, together with all buildings, implements 
 or instruments that are used in the production of such articles. 
 
 IT. MONEY. 
 
 1 
 
 5. Barter. — The part played by that form of wealth named 
 money is not fully realized until we imagine the operations of a 
 people without it. By referring to the trade of the P[udson's Bay 
 Company, we have an illustration f)f a very primitive system. The 
 Indians, instead of disposing of their products for silver, gold, or 
 other currency which they could hoard or use for pui'chasing the wantkd to exchanok -Forty acres <.f timber 
 
 ■^ 1 i? 1 • '"'"' '" t'"<"' fi'i''iii">J I'oniilr/ f(jr stock of groceries. 
 
 necessaries of life, gave their furs in nnmeduite exchange tor tiien' ' " 
 
 present needs — pots, guns, knives, ammunition, tobacco, etc. Such 
 a system is termed barter — the giving of what is not wanted directly 
 for what is wanted. The adjoining newspaper clipping is evidence 
 of the survival of the system even in our own day. 
 
 Wanted to Exchanne 
 
 (!OOD llK'YCIiE for (liainoiid or fox terrier 'hig : state 
 liartieiiliirs to liox O, No. til, Vn": I'reKS. 
 
 WANTED To rxchariKe, first-cIass ilental worl< for 
 t'ooil liaseliiiriier ami lioiiae painting. Call phono 4J2G. 
 
 Write or call, to ( 'leik, 1443 .letferaon ave. 
 
 WILL EXCHANOK l.ADY S WHEEL- In fc'oo.l eon- 
 (lition, for inoclern coal heater. Addreafi C, liox H, 
 No. 40, Free I'ress. 
 
 WANTED - Furniture in exehani-'e for tirst-elasii dress- 
 making. Aildress Box E, No. 25, Free I'ress. 
 
 6. Disadvantages of Barter. — Savages, whose wants are few, whose articles for exchange are limited, 
 and whose discrimination is undeveloped, have been known to manage their exchanges by l)arter. School- 
 boys, too, whose wealth consists of apples, pieces of string, tops, pencils, knives, etc., practise barter very 
 
 25 
 
26 
 
 fi'cclv. I5ut for a pooplo wlioso wants an; nuiiiennis, the simple system will not do. For instance, a tailor 
 might experience Lti'eal (litliculty in lindiiig a haker wlio would barter bi'ead for a coat, and even if he did, 
 the amount of l)rt'ad excliangeal)lo for a coat is too groat for immediate consumption ; while the bread is pro- 
 perly dividcid into loaves, the coat could not be cut up without being ruined. Jiuman ingenuity could never 
 J)ring about all the coincidences re(iuired to make barter jM-rfectly oj)erative among even a few hundreds of 
 primitive ])copl(', nnicli less could we hope to make it work for a people whose wealth comprises myriads of 
 articles and whose lal)or is ])erformed by specialists. 
 
 7. Sale and Purchase. — I'he system of sale and purchase supersedes barter. In this system of 
 exchanges one of the articles is held only for a short time until it is parted with in a .second exchange. 
 
 8. Medium of Exchange.^The article which thus temporarily intervenes in sale and purchase is 
 money, and in this use it is said to be a medium of exchange. In almost all acts of exchange it now inter- 
 venes one way or other, and wIhmi it does not pass from hand to liand it serves as a measure of value by which 
 amounts given and received are estimated. 
 
 REAL MONEY, 
 
 9. Gold. — There is no article that absolutely does not vary in the exchange value from year to year and 
 from century to century, b\it the people's of times past, after trying scores of suitable and unsuitable articles, 
 found that metals retain most nearly a stable value, and among the metals gold and .silver fluctuate least. 
 Consetjuently, all the civilized nations of the world now use one or the other as a standard of value. Since 
 reason and experience have .shown that two things at the same time and in the same country cannot be money 
 any more than one man can conveniently ride two horses at the same time, and since the most enlightened 
 nations have made a choice in favor of gold, we may easily predict that silver money, like the iron and 
 copper varieties of tlie centuries long iigo, is passing out of the world for ever. 
 
 REPRESENTATIVE MONEY. 
 
 10. Disadvantages of Metallic Money. — With metallic money alone as a medium of exchange, we 
 would hud our trade and commerce heavilv shackled. Heavy and v.aluable packages of gold would have to 
 be transported fi'om one side of the continent to the other, from one city to another; from the hamlets and 
 towns to the great cities, and from the great centres back again. The amount of the gold thus set in motion 
 would be enormous. Packages of the yellow metal, as numerous as the letters of the mail, would be con- 
 tinually passing and repassing each other. In large cities gold carts would be as numerous as coal carts. If 
 a man bought a farm, a house or a steamboat, he would require a wheelbarrow or a cart to carry the gold to 
 make the purcha.se. There is a natural tendency to avoid the exclusive use of a cumbersome medium of 
 exchange. When gold is called upon to ily from one side of the continent to the other in an instant of time, 
 on the wings of an electric spark, its solid mass refuses to move. Nor when less speed is required do we care 
 to trust the precious substance to the unguarded mail-bag. The faithful servant of the past betakes itself to 
 its other duties, and seeks retirement in the .safes and vaults of the banks. So little is it seen abroad that 
 many Canadians grow up almost to manhood without ever having made use of a gold coin, and so accustomed 
 are we to seeing its representatives " Will Pay " and " Pay," that we forget that gold has or need have an 
 existence as money. 
 
 Tlie Current Money. 
 
 11. Paper Currency and Coins.- '!< ■ ^ ' 'J« of the burden of a metallic medium of exchange, our 
 government and our leading banks issue ii;; ' ■ istntativos of value in the form of promises to pay gold on 
 demand. The govcrmnent issues theirs for iif|, ~-l , ^2. ^1, and some very large denominations. The banks 
 issue theirs for S."), $10, $20, and upwards. But, for the smaller denominations- the amounts under a dollar 
 — we still u.se metal, though not gold. The government issues silver coins of .f^V. Iro) ^h ^h ^^^ copper 
 
 mrnvmrn. 
 
of 
 
 27 
 
 coinK of Sio(7. Bociuse tlio coins and paper currfncy aro made np for convenient amounts, because of tlie 
 wide-spread faith ill tlio institutions that issue tiicm, because of tiie jjrecautions against counterfeits, and 
 because tin; Ixiarer is the rigiitful liolder, tliese papcn* and metal substitutes pass as n;adily from hand to hand 
 as real money. Tlicy are, cons('(|uently, called the mrr'nt diowi/, and their chief use is for making paymenta 
 where i)ers(inal (leli\ci-y is {)(j> ile. 
 
 'The Negutuihln Mnufij. 
 
 12. Money Orders, Cheques, etc. — Where we have to make payments by mail, -sve require money tlmfc 
 can be made up at our request in one bill for any odd amount desired, and of such a character ms to l)e worth- 
 less until it n-aches the hands of the riglitful recipitmt. Such money we can buy from the govermnent postal 
 system, the express companies and the banks in the form of orders on their liranchesor agents, to pay gold or 
 current money on demand. Che(pies on baidvcrs used for local purposes — are money of a similar nature. 
 All these substitutes of special production were not originally intended to act as a circulating medium, bub 
 we have Ijecome so familiar with tliem that they freciuently act in that capacity, though they do not usually 
 pass tlirough many exchanges until they are paid and cancelled. The passing of tliem from one h(jlder to 
 another is termed negotiating, conse(|uently they ai'e called the nrrjotiable luuiiei/. iSee page -1. 
 
 III. PIIOMISES. 
 
 13. Credit. — Tiie use and nature of money having been treated al)ove jus fully as space woidd permit, 
 we ai'e now to consider anoilier factor in tlie mechanism of exchange. So far W(! lia\e assumed that the real 
 commodities of exchange have been simultaneously transferred. For instance, if a man desires to obtain any 
 article of value, we have supjiosed that he lias some article at hand that he is willing to barter for it, or that 
 he has money on hand to pay ftir it, or tliat he will give an e(juivalent amount of labor for it. Bub in a 
 majority of the important business exchanges, the purchaser is not prepared with wealth, money, or performed 
 labor to instantly complete tiie exchange. Under such circumslances, if the seller parts with his article of 
 value, he is said to sell it on credit. Some days, months or years may elai^se before the money, wealth, or 
 labor of the purchaser is forthcoming to make the actual payment. 
 
 14. Promises.— Tn every credit transaction the purchaser gets an article of real value and gives a 
 pi'omise, the seller gets a iiromiso and gives the article of I'cal value. Tlierefure promises net somewhat like 
 money as the mechanism of exchange. They are tlie proxies, substitutes or representatives of real value 
 whose forthcoming is delayed. But they ai-e unlike I'eal money in tliat tliey are made of nothing and the 
 moment they are redeemed they l)ecoine nothing. Promises may be definitely stated in writing, detinitely 
 stated verbally or merely implied. A person signing a note gives a written promise. A person engaging 
 by word of mouth to pay a bill of goods in a month, gives a verbal promise; a person taking, accepting, or 
 ordering goods without paying for them, or mentioning j)ayment, gives an implied promise. 
 
 15. Debtor, Creditor. — The person who gives a promise is called a debtor, the person who holds it is 
 called his creditor. 
 
 Xotes, Drafts a)ul Acceptances. 
 
 16. Written Promises.— When the debtor makes a direct promise in wi-iting that he will pay the 
 creditor, the promise is called a tiote. When the creditor addresses a formal written re<juest to the tlebtor 
 to change a verljal or implied promise into a written one, the lequest or order is named a draft. It is 
 expected that the debtor thus addressed will write the word "Accepted," and his signature over the face of 
 the draft, and thus make a promise in writing equivalent to a note. This combination of the creditor's order 
 and the debtor's promise is called an acceptance. Or, the matter stated in another way, is this : When I 
 promise that / tinll pay, it is a 'note, but when ^veiled beneath an order, I promise that somebody else tvill pay, 
 it is a draft, and when that somebody, on his own behalf, promises to pay, it is an acceptance. 
 
 • The IlilU of Exchan!,'e Act reads more into a draft and a cheque than tliat which appears on its face. 
 
T 
 
 28 
 liiidk Debts — Personal Accounts. 
 
 17. Unwritten Promises. 
 
 00. 
 
 Se^liiyvj d^f., jwn,e. I^tfi^ ICjOO. 
 
 Oft^ nvo-rtik ajte-t daJt^ jl jiiont-iie^ to- hrcu. '0. (i. otucvlt o-t cicieA, 
 
 Jxi'-en tw-'ji'U-e^ Jjo Ica-ld j lo-i, tAivlue- lece-ii'e.d. 
 
 ^Vtlcia. n t. jH<^ o- ci . 
 
 The .'inove written promise is (•■•illed a note, Imt we wisli tlie pupil to observe tluifc wliat eonstitntes the note is 
 not the piipcr nor tlie writing tliereon. Thi^ promise tlie soul of that which is written — is the note. The 
 paper iind tii(! writing are hut the (Mnhodiment of the promise. Verbal or implied promises have no such 
 permanent, tangil)le and visihlc^ expression, neither are tiiey so delinitely and unconditionally stated, consc;- 
 quentl}' their t\\istene(( is most iVecjuently ignored. Tims, if \ sell ,)amcs IJaker an overcoat worth $2.'), and 
 if on leaving tiie stort! h(! says, "I will call in tlie first of the month and pay you," a most natural and an 
 almost universal conception of the transaction is that at the time of sale I get nothing for the overcoat ; that 
 is, a one-sided or half ex('ha!ig(; takes place. iJut it' [ sell Wni. Hood a similar overcoat and get in paj'inent 
 his note at one month, anyone will ngree tliat at llu; time of sale \ effect a complete exchange, — that I give 
 a Aalue and get an inune(liate et[ni\a]ent. An analysis of these two .sales Mill not disclose two such 
 distinct conclusions. Each pui'diaser got an o\cr<M)at, so foi' both sales the ylrhuj si(l(^ of the exchange 
 is comjilete. From Hood I get a visible, tangible value as salable as sugar or cloth; from J]aker I get a 
 ve!'l)al promise unseeable, intangible aiul comparatively unsalable. But mark you, only comparatively 
 unsalable. If I should ipiit business to-morrow oi- should tail in business shortly, it is very probaljle that I 
 could sell my claim against IJaker for (juite as much as I could sell my note against Hood. 1'herefore it 
 wouhl be well to correct any erroneous conception of these credit transactions. Since T got a written i)roniise 
 from Jlood, and an unwi'itten one from Baker, since promises are considered values, the (/r<//»// side of each 
 transaction is com|)lete. Hitherto it was conceded tliat for one sale the exchange is complete, but for the other 
 it was assumed to be one-sided or incomplete; that is, it was conceded that I get souusthing from Hood but that 
 I get nothing from Baker. I'.ut since the value lies in the promi.se and not in the paper or writing thereon, 
 it must be evident that l)otli are on the same footing. There is no good I'ca.son or authority for accepting the 
 one and rejecting the other. lIiM'eafter we shall expect the pupil to treat both written and unwritten promises 
 alike and as values. The note and the unwritten promise are both proxies or substitutes, acting till the real 
 values are forthcoming. In a few weeks we shall have anotlu-r complete exchange with both customers. From 
 Hood we shall get ><'l'^ in money aiul will surrender the note we hold against him. From Baker we shall get 
 i?2."), and will surreiuler the claim we hold against him. It will be evident to the pupil that a credit transaction 
 (liiFers from a "cash" transaction, in that it takes two exchanges to effect the .same result in the former as is 
 effected l)y one in the latter. Ft is a very erroneous idea to suppose that a credit transaction is after all 
 effected by one exchange ; that is, that one-half the exchange takes place now and the other half takes place 
 
 in a month. For Double Entry Book-keeping the basis of its operation is this : if you give any- 
 thing straightway you must get its equivalent. There cannot be an exchange in which a prolong(!d 
 interval of tinu* exists between the giving and the getting. Hence the u.se of unwritten promi-ses in the 
 mechanism of exchange. They are the creation of a moment, or are born of implication, for the law of the 
 land fastens a promise or a debt upon any one who has obtained the goods, the money, or the labor of another, 
 without making full payment for the same at the time. 
 
 18. Naming Unwritten Promises. — The personal name of the debtor is used as a name for his 
 unwritten promise. Thu.s, where we .sold the overcoat to James Baker "on account" we would call his 
 
 I 
 
T 
 
 id^ 
 
 29 
 
 promises ".liuiicH IJiikcr," wliidi is inciely an ablireviation for the phrase "a claim on James Baker." There 
 is nothinj.( unusual aliout this al)l)n?viatii)n. In ordinary speech we say W(* lioiight KipHiuj for our Hchool 
 lil)i;irv. Tt is pcM'fectiy inanifcst that the word Kipliiij^ must be an nlibreviation for souk; phrase, since it 
 certainly docs not mean the man. In recording i\w. sale of the overcoat we write 
 
 Jame.s IJaker, 
 
 Merchandise 
 ^meaning tliat we ge'., "James Baker" and w(! give merchandise. In preparing a financial statement wo 
 writ(; the assets thus : 
 
 Cash 'i.OOO 
 
 iMcn-handise HOdO 
 
 liills Receivable \-iy)<) 
 
 Jf. ; 'S Howard 168 
 
 James .Miller 18 
 
 William l''eigus()n .">i() 
 
 The last three names the list do not mean men, but the unwi-itten promises of men who bear these 
 naim's. Collectively ihesi three, oi' two hundred and three, if there were that many, would lie eaiied //'/vu/^ai 
 
 uci'oimtH or h(M)k dihts. 
 
 IV. SPECIAL VALUES. 
 
 19. Interest and Rent. — The dictionary nu'aning of these tei ms is not suitable for their apiilieatioii in 
 Book-keeping, that is to say, in the subject before us these words have; a technical meaning. The definition 
 we desire to lay down for interest is that it is tin: ,ise of money. The dictionaries all agrees that interest ia 
 t/f nioiiei/ paid for the use of money. Upon first reflection it may seeiri that the technical definition and the 
 general OIK! are about the .same thing. One illustration will .show the line of cleavage. If Ames borrowed 
 ^100 from Boles a year ago and now pays back .$100 and .$5, we ask ourselves who got the interest 'i If the 
 8") is the interest, then Boles got it, but if the use of the .flOO is the interest, then Anu!S got it. AVe say the 
 use of money is interest. \Vhoev(>r had the money during the year had the use of it. Ames had the, ."^ItiO. 
 therefore he had the use of it, and therefore he got the interest. But Boles got the i?5 for tlie use of the 
 moiiev, and (by the dictionary) moiu'y paid for tlie use of money is interest, tl erefore Boles got the interest. 
 There is an ab.surdity somewhere, and the })Upil nui.st see that it lies in the fact that the technical definition of 
 interest is almost the direct opposite of the dictionary meaning. Tlie dictionaries have undoubtedly delnied 
 tliegeiu;ral meaning of the term, but a criticism of this general meanin^^ will not be outof plaee and ^\ ill .serve 
 to impress the technical one. The money paid for the u.se of money i.s not diiFerent fi-<im any other money, 
 cons(>(iuently it seems unnecessary to give it a .special name. The money paid for a pair of boots should not 
 be called "boots."' If some one stamped a five-dollar bill " Roots," because he u.sed it for pa3'ing for a pair of 
 boots, he would bo doing a .senseless thing, but he would be only carrying to an e.Ktreme the illogical practice 
 we pursue in calling the money we pay for interest, " interest." The same chishing exists between our technical 
 meaning of rent and the general meaning of the word. The general meaning of rent is that it is the tuoney 
 paid for the use of property or chattels. The other meaning of rent is that it is the privilege of using the 
 jiroperty or chattels. The C.P.li. pays the G. T. It. S 10, 000 a year for the privilege of running trains from 
 Toronto to Hamilton on the G.T.R. tracks. This privilege (not the .910,000) is called "running powers." 
 If the C.P.R. uses a C.T.U. warehouse and pays 81,000 for the u.se of it, according to the dictionary definition 
 the .81,000 is the rent, whereas we would make rent similar in usag3 svitli "running powers," aiul say 
 that the privilege of using the warehouse is the rent, and the $1,000 is oidy money and not different from 
 any other $1,000, and therefore unwin'thy of a special name. 
 
 SUxMMARY. 
 
 20. Values are all things that possess exchangeability. The term includes labor, wealth, 
 money, promises, interest and rent, and, we might add, patents, copyright and good-will. 
 
;u} 
 
 A mSlNKSS 'IliAXSACTlON. 
 
 21. Business i-^ iImi t'xc;liiiiij,MH,i,' i>t' values. A liiisiiicss tnuisact ion is (inc of theso exchaii^'ps Woaltli 
 may luj excliiini^'cd for wealth, for labor, for money, for ]ironiiscs, for interest, ren(, etc. I^alior [ik<iwiso may 
 l)(i (>xeliaiii;eil for lal)or, or any one of the other values, hut most fre(|uenlly money or pioniisi's foi'in otu; sido 
 of an c.xehani^c and one ( f the other \alut'.s forms th«! other side. 
 
 Suppose !•',. A. St uarl is rondiirt in;,' the following,' transactions : — 'lake an exorcLso l)ooI< or a shoct of fools- 
 <;ap and w lite I he names of the values h(? exchanges, setting down rn^l,lh(^ name of the value h' gets, and 
 then (III till' iH'xt /ill'' helow the name of the valuo lie gives, putting the latter /d)out two inl•h(^s far. hor to the 
 right than the former. Lease a line lilank heiween the record of one transaction and that of the next. 
 
 lv\.\Mi>l-i; :-— 1. Sold .lames Cameron a iiat worth ."^o ; I'eceiviul in j)aymeiit a S") hill. 
 
 M()^•|•;^'. 
 
 F..r WKAI/rii. 
 
 M.\\MiM,i;: -•_'. Sold I!, iiiirrows an overcoat worth 625 ; received in j)ayment his note 
 
 J'HOMI.SK. 
 
 For WEALTH. 
 
 KXKKCIsi.; I. 
 
 1. 'i'raileil ;i farm in Hilton <'", for a store anil stock ot" 
 
 •groceries on <^>ucen Si., Toronto. 
 '2. (iavc .lames .Muir I.' hhls. of .suuar and in Mils, of ilnur 
 
 for [i.iiniinLC ami decorating tiie 8tort\ 
 .'!. I'miii'jIiI a hurst! ami delivery waggon for !?lfi" and paid 
 
 tor ilio sanic! in !i>|() lulls. 
 
 1. UniiL'lir .11) .idditiiMial stock of groceries from J. !'•. 
 Sim|i:-.in A' Cn., and gave in ])aynicnt a note at '2 
 moul lis. 
 
 EXKRCISK III. 
 
 1. Caslieil a cheipic for a friend with .S40 current 
 
 mmiey. 
 
 2. raid the 'my for driving the delivery waggon So for his 
 
 scrviot'S. 
 
 15. ilcceiveil i^2 fiom Hrury Tinice on account of sale < if 
 (licklcs, (.■aiaicd s;tlmon, sugai'. 
 
 4. Taid my note due to-(lay in favor of the Merchants 
 
 liaiik with current luoucy. 
 
 5. l'>iiuij,lu a slock of fresh fruit, and paid for the same 
 
 with flicnuc. 
 
 KXEUCISE V. 
 
 I. Sent . I. \V. r.rown, Cliatliam, a bank di'aft to pay for 
 
 la-^t. year's interest <in mortgage. 
 L*. I'aiil for rent of dwelling, .^15 iu current money. 
 ;>. deceived from S. Cooper a $10 express money order 
 
 for interest on his note. 
 
 4. Cave 0. .lackson the use of the horse and delivery wag- 
 
 ;.,'on for a day ; received for the same a box of cigars. 
 
 5. Received from E. C. Peters a ]>ost-oHice money order 
 
 in payment t>f the current month's rent, for house 
 in Weston. 
 
 EXEI{('1SE ir. 
 
 1. Paid for transporting groceries from .Montical (frei'dit'i 
 with current money. 
 
 '_'. (Jave .v. Hamilton, real estate ai^'enl, a .'r'JtM* cluMpie 
 for his services in ell'ecting an exchange (connnission) 
 of the farm fia' the groci'ry business. 
 
 .">. Ca\e Jlrs. White one dollar's worth of sugar for scriil)- 
 bing the Hour. 
 
 4. Paid for tflephouiiig to Hamilton u ith a oO cent jiiece. 
 
 EXERCISE IV. 
 
 1. iJought temporarilv. on account. JO chests of tea from 
 
 .b I!. Simpson A Co. 
 
 2. Sold 11. Sampson, on ai'count, ;i do/.en oranges, a jMiiind 
 
 of ie,i. a dollar's worth of sugar. 
 
 .'). Cave Ili^nry Sharji a mort^^age on the store and lot foj' 
 
 SI. 000. 
 4. P. V. Scott has a note for .SIOO aK.ainst, '!'. T. Slow 
 
 which is past duo and of doubtful v.alue ; uave him 
 
 .S<o for It ni current money. 
 
 .5. The JO chests of tea have arri\ed fr"m .Montreal and 
 are satisfactory ; accejited .J. 1>. Simpson it Cos draft 
 in settlement of account. 
 
 EXERCISE VI. 
 
 J. I'>ou<iht from i\Irs. Jenkins 10 doxen eu'ys and a crock 
 of butter ; gave her in trade sugai' and other i^rocei-ies. 
 
 2. Bought a half interest in a patent churn for SotJO ; 
 gave in payment a note. 
 
 ;{. Etl'ected the sale of 10 cars of jKitatoes for -Tames 
 IIe[)))orn, llillsboro' ; received in jiayment for ser- 
 vices (connnission) a note at one month for §50. 
 
 4. Paid the veterinary surgeon !?5 for doctoring the horse. 
 
 5. Sold tlie horse to A. F. Ramsay for hi.s cheque f(»r $30 
 
 and a note for ^50. 
 
 B( 
 
 
 this 
 
 the 
 
T 
 
 CHAPTER HI. 
 
 i!<»()K Ki;i:i'i.\(i. 
 
 1. Book-keeping" in a systcMniUic ivci)r(|iiii,' >)f l)iisiiic-.s I ransacl inns. 
 
 2. A Complete System of lefdnl Ihdt n-jcuts m- neglects n<. liusiiiess trvuisiicti.iii is ealled l)<)ul»l(^ 
 Entry Uook keepin;,'. 
 
 3. A Brief System tluit confeiitmles itself upon recDrdini,' t r.'insjict ions iMvohinu' unwritten proniisos 
 luid rejeiMs or ne-lects (o r<M'.)r(l fill or ni;uiy of tiie oilier- t imiisuci ions is ealled Sin,!,'le Kniry I'.ook keeping. 
 
 4. Other Collections of Memoranada systematieally arranged may Ix; dignilied 1,\ the name of 
 Book-kiM!ping, Imt tlu; system of I'ecord must he learned from soui'ees other than .seiiool text hooks. 
 
 5. The Principles of Doul)].? Entry Book-keeping as universally practiced, were llr^l, l'..rmnlated in a 
 crude way l)y an Jtaliari friar named Lucas di V(!rgo, who Jived altout the end of the loth e.-niurv. The 
 friar .seems to liavo liail a simpler system tlian ho was aware of. II(; mi.xed up his ideas in a maze of 
 persoiulication which liis ch'sciples have followed so persistently that many of the atrophied fragments 
 remain with us .still. The "Dr." and "Cr." with him meant dehlor and creditor, with us they are mere 
 marks to indicate; "get" and "give," or "left" and "right," though they do occasionally mean dehtor and 
 creditor. The companions of tliese symhols, "To" and " L'.y," have practically no meaning ul all. The 
 principles cleared of tlie ligurative language; are as follows: 
 
 1. («) He named money of all kinds Cash, 
 
 (l>) Wealth, if houghl for tlie purpose of selling at a ]irofit, ho named .Merehandise. 
 ('•) Wealth that w;is to he consumecl or ajiplied to the con-lucting <if a business, he Jiamed Expense. 
 ('/) l.,al)or, to he applied for the s;ime purjiose, he al-~o named lv\pens(;. 
 (e) A\'rit.ten promises of his dehtors Ik; called T.ilh !ieceival)le. 
 
 (/) ^^'l■ilten i-romises of his own, in favor of liis creditors, he named Hills Payahle. 
 {(j) Unwritten jn-oniises were named, as we exjilained in Chapter I. hy ili,> names of the persons with 
 
 whom he was conducting a transaction that involved a Ncrh.il ]iromi.se. 
 {/i) TJf /I.--,' of money h(> named Interest. 
 
 2. {(i) in a })ook named a Day Dook wei'e set down neatly memoranda of the transjictions in tlu' order ot 
 
 time as tluiy occurred. 
 (l)) In another J)Ook, named a Journal, were set down, for each partictdar transaction, the names of 
 
 the values that were exchang(>. the one he got heing >et down iirst with " Dr." after it, and 
 
 the one ho gave with "To" prece(hng it. 
 (c) A tahulated list of all tlie occasions, amounts, and efpiivalents in exchange, of a cerlain value, 
 
 that had been got during a cerlain period of time, was compiled on tiie left half of the page of 
 
 a l)ook called a Ledger, while on the right lialf of the same page was .set down a similar iTst of 
 
 the occasions, amounts, etc., of that ^alue given. 
 
 3. After compiling these lists for every value mentioiunl in his Journal, he would he in a position testate : 
 (a) ITow nmch of any particular value was on hand. 
 
 (6) If the value was of such a character as to he consumed in conducting the business, then how much 
 
 had been consumed, 
 (c) If the value was being bought and sohl to make a profit— that is, if he increased the measurement 
 
 of its value while in his possession— he had figures at hand to sliow the gross increase or profit, 
 
 4. A cardinal principle which underlies all his work, and which is the chief axiom of Book-keeping, is 
 
 this : The measure in dollars and cents of the value you get is the same as the measure' of 
 the value you give. 
 
 31 
 
32 
 
 G. The basis of modern accounting" i- iIh- -'iih' as tiM> li.ilian. imt tin- umU is l<'ss fnnii/il. Tho 
 
 cliissiliciitiiiii lit' \,iliii's is iiiuri' iiiiiiuii', |i.irticiil.ifly wiili rf;faril In I'a|m'iisc luid .McrcliaiKJisc, Tlic .Imirtial 
 iiiid I'av liii'ik aic miilcil willi llic old .linii'iial alistrart, wi'ituMi aldivc or hctnit' llic iiu'iiMifaiMJi. 'Ilii* 
 traiisaclidiis ail' imi all wriKi'ii in <ai<' Imuk; iliai is, tlio ci'inliiiial inn .loiirual- 1 )ay llimk is lunktn ii|i and 
 tnuiNactions ut' a [lai l iciilai' \\['<' lliai imtiii' limu amis of times in a year arc isolalrd and ircordi'd higctiitT. 
 
 'Ill !■; .loruNAi-. 
 
 7. In ill.' iiiiiial pari of liii-; svoik ilir |ai|iil will um' for I'liifriiii,' llic names of ihr \aliie-- exelian,<.'ed, luul 
 a snilalile des('i'i|ilion associaird IImtcw itii, a liouk dc^erilicd and iiaincd aiin\'c. j'.iil since the naiiie .Idiiinal- 
 Dav I'.ouk is ral liei' lull" il « ill Im- alilpre\ iaied. and llic word .loinnal alone will lie iHcd. Anyliook that, 
 t'ontain-- ihe nanii ^ i>\' the values c\clianiicd and an assoi'ialed niemoranda, i> eallcci ti Imnlx nj' i<riiininl 
 cvlni. As tJic jiii|iil |iro.,'r(,'sscs willi his woi'k, Iks will lie shown that, iiioijcrn liiisiness huuses classify 
 transact ii-ns as lliev oci-ur. and enter tln'in into liooks specially prepared t'or their rcccpliiai. 'I'liey arc known 
 us Cash I'look-, Sales liook. Invoice I'.ook, Hill I'xxik, etc. 'I'liesc are Kroken parts of the .Inmnal, and like it 
 iii'(! known as hooks of oiiLiinal entry. 
 
 8. An original entry is the record of a siii^de traMsactioii ill 11 Jniirnal, Sales I'.ook, C'asli I'.ook, etc. 
 Tt should con lain I he .l>iuriial ali>l raci and a suilalilo ex plana I ion associali'd iherew it h. The f.il low in- is an 
 illustration of an urii,dnal Journal eiilry ; 
 
 liKiiir Com MN, 
 
 fllU'C nf 
 
 till' 
 I.oljflT 
 1 .Vci'l. 
 
 Valiu's 
 exuhuiigcil 
 
 Explana- 
 tion, 
 Dfsci'iptidii 
 
 ur 
 Meiiiotaiula 
 
 .;,s' 
 
 /// 
 
 CiiKiiir Coi.r.MN. 
 Iiolliirs. I ('ciilH. l.iilliirK. Ci'iitg. 
 
 o 
 
 oyj 
 
 fj 
 
 w 
 
 9. 
 
 lift on 
 
 is callt 
 
 o/rj/Zu Qyjfrrr/^'ff/'/r. 
 
 .//" f/rff/.t. 
 
 THK LKDdEll. 
 
 The Ledger is tlui liook of the talmlafed lists. 'Phe list on the left half page is called (h'hlts, tlie 
 the riudit half is called rroil\t>t. A doul.le list,, /.''., debits and credits, relating to a nar^icular value, 
 d an Kcruiint. Tlu! follow in" is an illuslration of a ledger account and of what it coiit'uns : — 
 
 T.KIM !ER ACCOUNT. 
 
 Dkhits. 
 
 C'rkdits. 
 
 Ykah. 
 
 Monti 
 
 Dmv. 
 
 ' I'age of 
 J'".(|nivaiciit or ,.Toui'iial, 
 
 cxpliiiiiitioii. 
 
 This cohiinii is most 
 
 froiiuently 
 
 left blank. 
 
 etc., 
 con- 
 taining 
 otigiiial 
 cntiv. 
 
 Dollars. 
 
 Cents. 
 
 Ykar. 
 
 Moiitli. 
 
 H(ini\ak'nt or 
 
 (•x]ilaiiatioi). 
 
 Day. This ooluiiui is most 
 
 fic(iuently 
 
 loft blank. 
 
 Pago of 
 .biiniial, 
 etc. , 
 con- 
 taining 
 original 
 entry. 
 
 Dollars. 
 
 Cents. 
 
.'i:i 
 
 .lolUNALI/INO. 
 
 10. I'ln' writing uf iIim niimt's of ilii> vhIikh fxcliiuigt'il is ciilloil .li)iirrmliziiig. AlMiiit, half tlio Nci«)iiot) 
 of HooU-kt'cping lii'H in writini,' liiis .Juiiiiiiil iilistmct. Tlio n-st <it' llic sijrticc lifs in |>n'|iariny iiii iihstriuit 
 from tin) It'ilijcr iici'oiiiils, Assctciiilcd uiili tin- |ifr|i(iriitioti of iIh'm- iili-.ti'a('l>t is niiicli iiifcliaiiiral vNork 
 iiiNojviiii,' tlin ii>(! <if liook.s, furiiis, I'oluiiiiis, riilinyM, nU-. 'riii.s iiini'imnii'al work niii^' Iil- cailcii tlif art of 
 Hook kff'pirij,'. 
 
 11. 'rii.> .Foiiriuii al)strai't is coiiiposivl of flic dato, tlin ?iamt's of tlio viiliii-s (>xcliaiii;<'<l, iiriil tlwir nicasuros 
 ill (lullir-; and cfiils. TIm' nuino of tliu valiui you iji't is always wrillcn lirst, anil under it (»r al'lri' it is 
 writ (en till- iiiiinc ot' ilic \,dnf you ///iv. 
 
 12. I'niii tlio ))ii|>il iicoonies luoro (jxperit'iiccd, liic naintvs ajjplicd lo liic values will li.' llu' same as tlm e 
 <le.scriij('(l ill par. T), l*t. I. 
 
 1. Cash. All forms of money tliat Hanks will accept as deposits are Cush. See pp. I'O, '2\, 
 
 li. Merchandise. -Articles tliat nn> Wonght to 1)0 sold at n |irolii, are .1/- /v/irtw^/Mrt— ablyrcviutod to Mdse. 
 
 .'{. Expense. .\rticles that are ]nn'cliased to Wo n-ec| m condiiel ini,' lli'' Knsitios arc called A'.r/irn.'O'. 
 
 •t. Expense. Services of persons, lirtiis or lompanies oWlained for tlie s.inie pnipose arc also callod 
 Ej'fiiiuxr, \\ iih p(i-,silily one nolicealile exccpijon : I'reii.dii (tlic HerviceM of a J{y. Co.) is called .]f<hi\ 
 
 Ti. Bills Receivable. —Notes and accepiances of di'liiors arc called JjUIh lifceivablny j.'., Jiis or llieir, or 
 Joini Smilli'^, or .iiiy jierson's notes except- your own fii'e Hills Kecei vable. 
 
 Ileiiieiiilier : I 1 is iJeceiv alile. 
 
 r». Bills Payable. Xotes or ncceplances of lli(« propriet(;r of a husiiioss in favor of creditors aro called 
 Bills l'ayal)lc, i.<-., my notes or aceeptances are Hills Payal)le. 
 
 l{cincinl)cr : My- I'ayalile. 
 
 7. Interest and Discount. — 77<« ?*w of money i.s called hitrrrst au<l Dli^ronnt* 
 
 8. Real Estate. AN'ealth in tho form of lands and lniildiniis is called It'ial Kstat'', 
 
 0. "John Jones." — L'nwritten jtromiscs are named \t\ the name of the person with wlmm, or flie 
 firm name of the hiisiness house with which, we are coiKluctiiii,' a transaction that invohes a veri)al promise. 
 Thus, if we sell .John .lones some artichf ton account, we namc^ the v<'i'hal promise of the purchaser ".lolin 
 Jones." Hub if we huy Komo articles from William Smith kV Co. on account, we do not use our own niime 
 for <»ur own unwritten promise. We use, as stated ahove, the firm name of the husiness house. Therefore 
 we woidd name our \erl)al promise issued for this purchase, " NN'illiam Smith it Co." 
 
 lU. Stock. — One .sp(H;iid unw;itten jiromise or el;iim that is supposed to exi.st hetwcen the ]iropi'ietor of 
 a business ami the husiness it.self is named Stock. 
 
 13. The following are the principles upon which journalizing depends : — 
 
 1. Tf you gi\e any value straightway you must get an efjuivalent. 
 
 2. If you get any value straightway ^'ou must give an e(|uivalent. 
 
 3. The measure in dollars and cents of the value you get = tho measure in dollars and cents of the value 
 you giv.'. 
 
 EXEKCISKS IX .lOl'KXALlZINt;. 
 
 14. Take an exorcise 1)ook or a sheet of foolscup, and rule strictly in accordance with the following 
 instructions : — 
 
 1 Tlace your ruler along ihe ^fi rst llyJtt blue line .at the top of the page, and rule a douhle head line from 
 edge to c(li;e. 
 
 2. If the page has no margin line, rule one 1 \ in. from the left edge of the i>ago. 
 
 3. Rule another line inside the margin, ahsolutely parallel to the first, find | in. to the left of it. 
 
 4. Starting at the right edge of the ])uge rule two money cohnnns. 
 
 {a) The cents division heing y in. wide. 
 
 {}>) The dollars division heing | in. wide. 
 Observe the riilitig on tho following page as a guide. Your })age will likely he wider, hut the extra width may 
 be put in tho centre space. Tho columns must he the .same width, llule other pages ;is they are reijuired. 
 
 15. Observe the work on the next page, and then proceed with the work of the exercises that follow. 
 
 *NoTK. — There i.s .an English statosmaii nameil Ciimi)l)ell-BanneriniUi. His name is not Oaniphell, nor yet Rannertnnn, 
 h\ifc a coniliination of tlie two. The vie of money is similarly named. As a rule we do not name it Interest if tlie measure is 
 computtMl l)y the interest method, nor Discount if computed hy the discount method, hut the name for hoth ia a comhiuatiou 
 of the two words with "and" hetween them. 
 
 + The worda "on account" are the hall mark of a tr.ansaction involving an unwritten promise. 
 
w > 
 
 Jouriializini; n 
 
 SUlc f(Jl' Civsli. 
 
 A jiurchase for 
 
 C«Ui)l. 
 
 A purchase for 
 
 a Note 
 
 I'.-iyiiijf iiu 
 lOxpeiise item. 
 
 Pajinj,' iii.v Note 
 
 Sale on Account. 
 
 Purchase on 
 
 Aciouiit. 
 
 Acroptini; a 
 I (raft to pay an 
 .\ccunnt. 
 
 34 
 
 (Kii-st (lati.t 
 
 oZian/c^, e%// /^6 ^-^^^^ 
 
 r?. 
 
 0a 6/1 
 
 (The next (late.) 
 
 Qy, 
 
 '/C<ue, 
 
 ^a&^ 
 
 6 
 
 Qy/i 
 
 ''/uue. 
 
 Q^tM Qy^yawe 
 
 (The Baine date.) 
 <( 
 
 
 O 
 
 Seiiid 
 
 in 
 
 ^t//l MyaM 
 
 (pa&U 
 
 (The same date.) 
 
 /oAn Qy/nilA (or imrchascr'a name.) 
 
 >o 
 
 Q/ZC/ic. 
 
 C^r. Q./. Q-ynlAfl civ &«?. ofselle 
 
 ,anie 
 r) 
 
 — -- ) cy 
 
 ^yij, I'^/'r'JJ (C" (' O^. (or name of drawer.) 
 
 
 04 s r'O 
 
 oii 
 
 70 
 
 40 
 
 4 
 
 ^SA 
 
 4 
 
 .//; 
 
 .:o 
 
 I it 
 
 J!) 
 
 ■ / 
 
 ',0 
 
 4i 
 
 048 50 
 
 
 '6 
 
 o ' 40 
 
 i 
 I 
 
 284- 
 
 10 
 
 25 
 
 tb 
 
 39 
 
 40 
 

 
 
 35 
 
 
 
 EXERCISK I.- 
 
 -SALES AND PURCHASES. 
 
 
 1900 
 
 
 ]!.W 
 
 
 04S 
 
 o 
 
 
 
 52 76 
 
 o 
 
 40 
 
 284- 
 
 10 
 
 to 
 
 39 
 
 25 
 
 40 
 
 Sept. I Sold merchandiso for cash ^2i\b 00 
 
 3 Bought merchandise for cash 31() W 
 
 4 SoUl H. B. Roberts goods on account. 42 00 
 G Bouglit an invoice of goods from TI. 
 
 Bruce & Co., on my note at 30 days. 
 
 7 Sold B. C. Mason a bill of goods on his 
 
 note at 3 months. 
 
 8 Bought a bill of goods from M. C. 
 
 Dodds, and accepted his draft at 30 
 days 
 
 47 20 
 75 37 
 
 96 45 
 
 Sept. 10 Si)ld n. Weaver a bill of goods on 
 
 (ioa.iys' time $30 19 
 
 11 Bought an invoice of goods from M. 
 
 Robertson it Co., on account 34 27 
 
 12 Received from C. .1. Nelson a post- 
 
 otiice money order, for ivhicli lie 
 wishes 100 lbs. of oatmeid shifiiit to 
 him inmiediately. Sliip[ied .same. . . 3 00 
 
 13 Received from P. P. Lesarge an invoice 
 
 of g(jods ordered from his traveller. 
 
 Term.s, CO days' tim« 3G2 84 
 
 EXERCISE II.— EXPENSES. 
 
 1900 
 
 Sept. 1 Bought a horse and waggon for cash . . $100 00 
 
 4 Bought for cash postage stamps and 
 
 stationery 5 25 
 
 5 Bought on account from John Burns 
 
 one ton of coal for fuel 6 00 
 
 7 Paid Mrs. Johnston for cleaning store, 
 
 cash 
 
 8 Paid for telegram with cisli. 
 
 1 00 
 CO 
 
 1900 
 Sept. 10 Paid for advertising with cash $2 75 
 
 12 Paid for rent for month 30 00 
 
 13 Sold horse aTid waggon to John Barker 
 
 for his chuiiue 1C5 00 
 
 15 Bought a second-liand s.ife from R. 
 ]\IcDoiialcl, anil gave him in p.-iyment 
 my note 75 00 
 
 15 Paid for insurance premium on policy 
 
 on sN.re 37 25 
 
 EXJIRCISE in.— PAYIN(J ACCOUNTS AND NOTES. 
 
 1900 
 
 Sept. 
 
 Puiil II. B. Hamilton f)n account, cash. $1C 
 Received from W. B. Norman ids 
 chu(|uc in full of account 17 
 
 Ruceived from Mi's. V,. Moore 10 doz. 
 
 u^i's on account 1 00 
 
 00 
 25 
 
 8 Received from James Scott, Winnipeg, 
 a bank draft to pay his note due this 
 day 
 
 100 
 
 10 Paid my note in favor of R. B. Wright, 
 
 due to-day 175 
 
 00 
 00 
 
 1900 
 Sei>t. \ji Received from II. Henderson liis note 
 
 in full payment of his account §17 00 
 
 12 Paid my acceptance in f.ivor of James 
 
 Muir \- Co.. due to-<l.)y, with cash. . 3C5 00 
 
 13 Received fror.. II. Boles an expiess 
 
 money order for full paymiiit of his 
 account 3 50 
 
 14 Received from II. Brown his accept- 
 
 ance in full of .account 39 00 
 
 Vo Received from B. Norman liis clieipie 
 
 in payment of Ins note, due lo-day . . t)4 00 
 
 EXERCISI ; 1 V, - (iENERAL. 
 
 1900 vm 
 
 Sej.t. IC Sold mdse. as i>er bill to B. Sinclair |i feept. 20 Paid (i. Hamilton on — d, cash, . . SlOO 00 
 
 on account $1C 2 J 
 
 Made sundry sales of mdse. during 
 
 the day for cash 18 3d 
 
 Bought mdse. per invoice from G. 
 Hannlton on account 145 10 
 
 18 Bougiit oaint, brushes, etc., for paint- 
 
 ing store, from Warner Bros., on 
 account 15 90 
 
 19 Benight mdse. as jier invoice on my 
 
 note at 30 days 200 00 
 
 21 Received cash from B. Muelair in full 
 
 or account K' 24 
 
 22 Sold J. R. Russell on acfount mdse. as 
 
 per bill 7 26 
 
 ?5 Paid cash for bibor of i.ainting store ! . 15 00 
 30 Paid (\. Hamilton lul.ince of account 
 
 with itiy noie at 30 ;/'vys 45 IC 
 
 30 Pai.; cle 'i-'s salar« W 00 
 
 30 M • ie su'idrv ;, iies for cash during the 
 
 clav '-^7 40 
 
36 
 
 i : 
 
 STOCK. 
 
 16. .V spncial casf^ of journalizing occurs in dealing witli the propriotor in Ins iclation to his bu.siness. 
 In onler to maintain the eijuilibriuni of tiie Ledger and to .show readily the proprietor's net investment, a 
 fictitious pi'omisc named "Stuck "is conceived to exist l)etween ^Ae /^//"O/c'.w ami the proprietor of the same. 
 Wher(! iwo oi- more partners are pr(M>ri«'tors, tlie promise pos.ses.ses V( ry little of the llctitious character. 
 'I'iie ehii^i feature of th't (niiis <,/ purtiiorship is a set of promises that exist Ijet-wccn the partners. Tho 
 iiihrrsl ,n,r<,i'lli,',i,.h<(x in thr JnidnrM, is an understandii:g or promise as l)et\ve(^n him.self and the others, 
 that should he withdraw, the others will hand him over the sum he invested plus his .share of the protits, or 
 mintis Ids share of the losses. 
 
 17. In a partnership Imsiness ".lohn Siinth, Stock," means the claim John Snnth has upon the business 
 for the money or other values he invcsled. In a single jiroprietor business '• E. A. Stuart, Stock," nught oe 
 said to' have a somewhat similar meaiun-, bub except for the purpose of maintaining inviolate the principle 
 of <ji /, <iir<\ if theie is any meaiung, it is more or less forced. 
 
 18. A\'lien we reaeli the journalizing of transactions involving investment, we must warn the pupil that 
 the real subject of the verbs (ji't and ijtr,' is the word biisnirss. In all ordinary transactitms, it is a matter 
 of no conse(|uence whtither the ].roprietor says, " T get" or " the business gets," but where a final test occurs, 
 remeiidter that "the business gets," "the Inisiness gives, ' is the correct conception. 
 
 Example 1. K. A. Stuart inv(>sts $2,000 in cash as sole pro] )rietor of a boot and shoe business. The 
 book-keeper writes : — 
 
 9^ /' 
 
 The tiiisiness j;('ts (C (lO'f- *i'""> •■■• •\- Stnart. 
 
 Tlio liiisint'ss trivcs a fictitimis 
 I 
 
 / 
 
 f.c.itinus 9?^r./^.Q/ ,• ^9/ / .. 
 
 .roiiiise ,uuiir,t &. QV. Q./fttaifj Qy lOc/i' to him. 
 
 fiOOO 
 
 2000 
 
 Example 2. In a j.ar'.nership, if K. A. Stuart invests 8*2,000 in cash, and J. A. McNeil invests $2,000 
 worth of boots and shoes, we nnist \\-rite : — 
 
 The 1) 
 
 9r ,/ 
 
 )MsiiR'Ss j;ets {'yfl.j/i' from 1',. A. Snuirl. 
 The l)>isiiii'ss !,'ives ii pniniisii iiiiimMl C\ OJ^-. iri/ tftrtifj QytOCH' to hii 
 
 to him. 
 
 2000 
 
 2000 
 
 2000 
 
 2000 
 
 The business |,'ets Qy/Cu^f. frcnu ,1. A. McNeil. 
 
 The business gives a P™"''«- ^_^^ _| /' S.of Q^.//e Qyl^Ct/^ (S^Uc4 
 
 19. If a j)roprietor invests several kinds of values, the entry should show the individual values or debits, 
 and an amount of Stock equal to them as a credit. 
 
 Example 3. E. A. Stuart commences a boot and shoe business, investing as follows : — Cash, $2,000 ; a 
 stock of boots and .shoes, $.■?, 400 ; 25 notes and acceptances, aggregating $2,010 ; John S. Pearson owes liim 
 $200 on account, and W. P. Holman owes him $400 on account. We write an entry like the one on the top 
 of the next page. 
 
37 
 
 The 
 
 The business gets Qyfli/l' 
 
 QAJtaA QylefcifaA/e 
 
 'mnn' from K. a. Stuart. 
 
 The business yives a promise named 0, QS^A, '-^yf/ff/ifj QyrOrA to hi: 
 
 /^ 
 
 2000 
 
 1 
 
 
 3400 
 
 
 
 2040 
 
 
 
 200 
 
 
 
 400 
 
 1 
 
 804' 1 
 
 20. If upon investing, the proprietor wishes to have certain of his outstanding debts, as tliey mature, 
 paid from the casli of the business, tlien the; amount of these debts is immediately dethieted from iiis stock, 
 and an entry showing a fictitious (jirun/ of promises to his creditors on l)ehalt' of the luisiness is sliown. 
 
 icample 4, K. A. Stuart commences a boot and shoe ))usiness, iiivesiiin,f as follows; Casli, si', 000; 
 .':?;3,4UO; notes worth 8-, 040 ; John S. Pearson owes liim on account. !?-UU : W. P. Hohuan ()W(>s him 
 
 EX£ 
 
 Mdse., i^:: 
 
 on account, 8400. lie owes a note in favor of F. F. Temple for 8300 ; he owes K. K. Smith 8-')(iU on account. 
 
 We write : 
 
 The hijsiness '. .-' •''PtZd: 
 
 Qy'/CtUe 
 
 CC , Qy . cy'z^W/fiafl from E. A. Stuart. 
 
 The l)usiness t'ivcs a iminiise named QAJCClS' G/'d'Uf/ (' (0 to 1'. F. Temple. 
 The busine.ss gives a promise named (-^ ,- Qyl. Qy /fzit/l- to K. K. Smith. 
 Th» iMisiness Hives a jiromiso nar. . (^ Qj^. Oi/lua'ifj (S^/aC/^ toE. A. i 
 
 /m'^ Af^ fViit-.'./'m'-'ji^ 
 
 2000 
 
 3400 
 
 2040 
 
 200 
 
 400 
 
 300 
 
 500 
 
 7240 
 
 21. Tf. (hiring the operation of tlie busine.ss, the proprietor desires to withdraw part of liis capital for 
 some pinposc utterly disconnected with the enterprise he is conducting, then he must surrender part of his stock : 
 
 Example 5. K. A. Stuart desires to purchase a house, and for the purpose withdraws 82,.'J00 from 
 his boot and slioe business. We write: 
 
 The business gets C\ Q-^/, Qy^Ualt^ OJ^OCU 
 usJMiHSjfive '{?(f6'nf 
 
 The busJ! 
 
 /• 
 
 'ej' rfj^ffiffjf^ ff'fY/ff/j'ffff'jt 
 
 2500 
 
 2500 
 
SSSaSMMiiSMHi 
 
 'Mi 
 
 22. Exercises in Journalizing Investments:- Rule ^ ^jer "le sfune as f<.i- previous exercises. Here- 
 after paper ruli'd in this \v;iy will he called Journal paper. Ohserve vhat a tlate is all that occupies a line 
 hetween entries. ]f a date is not necessary leave a hlank line. 
 
 Journalize the followinij. 
 
 EXERCISE V. 
 
 1. E. A. Stuart commenced business with a cash capital of $.^),080. 
 
 2. J. P. Durand commenced the hardware business with cash in safe and bank, $4,240, and a stock of 
 goods in store, .SG,500. 
 
 3. F. C. Anderson commenced business with ca.sh, $200; a stock of groceries, $8,000 ; and furniture and 
 fixtures in the store woith $.")00. 
 
 4. G. P. Smytho coiamcnccd tlie lumber business with cash, .$.5,000 ; notes and acceptances worth 
 .$2,000; S. B. Haiper owes him on account, $40; he owes J}. F. Baxter on account, .$60; and R. R. Harris 
 hold.s a note against him for .$500. 
 
 .'). James Cou/ens commenced business with cash, $2,000; a note against S. R. Fox, the face of which 
 is $500, but it matures in l-wo months and there will then be $30 for interest owing on it. The interest now 
 earned may be valued at .$25. 
 
 6. 11. D. Dunbar has on hand Mdse. amounting to $1,6.30; cash, .$425, notes of other persons, 
 $1,429.80. R. P. Anderson owes him on account, $169.20; he owes on notes, .$324.90; he owes $500 to 
 A. C Adams on account. Write his opening entry when he begins business in partnership with M. P. Burns 
 who invests $5,000 cash. Write also the entry for Burns. 
 
 7. W^m. INIiller has been conducting business without Viooks, and now enga • a book-keeper, who from 
 enquiries and taking stock finds that the following is the true condition of aH. •-•• Ctsli on hand and in 
 bank, $6.'}8.1S ; Mdse. in store, $3,634.20; notes against sundry persons, .$2k ..ture fixtures, etc., 
 .$329 ; Miller owes on notes and acceptances, $1,329.20 ; thei'e is interest accrued anil i"g on these, $35.10. 
 He owes Henry Snell on account, .$604, anil E. .J. Edgar, $397. Write the Journal entry toi starting the books. 
 
 8. E. A. Stuart has been left a legacy in cash of .$4,000. He invests the same in his boot and .shoe business. 
 
 9. P. .7. O'Neill withdraws .$50(1 in cash from his manufacturing business to give to a church building fund. 
 10. During the year entling August 31st, 1900, F. J. Peterson has withdrawn groceries and other house- 
 hold supplies from his general store amounting to $628.34 ; make one entry to provitle for the total 
 withdrawals. 
 
 COMPLETE JOURNAL ENTRIES. 
 
 23. Explanation of Entries.- -Remember that each journal entry should be accompanied by a brief 
 and yet a complete explanation. This explanation should be sufficiently explicit to enable anyone having a 
 knowledge of book-keeping to understand the details of the transaction. 
 
 24. How to make Corrections. — Incorrect entries should not lie corrected by erasures, but by 
 re-writing the entire entry correctly. The wrong entry should l)e cancelled either by writing the word 
 "void" aciosK it in red ink, or by cliecking off the entry, i.e., by making a check mark "-j/"' opposite it in 
 red ink in the folio column; or by checking off, and crossing out the figures, thus, 420. $4. When the error 
 
 is in the figui'es only, they may be crossed out and the correct ones written above them, thus, /Zqju 
 
 All cori'ections should 1)6 made so as to leave the incorrect entry legible. 
 
 25. Ciphers.— in recording .■uiiounts express(>d in dollars only, it is unnecessary to fill out the cents 
 column in ciphers, as it is a waste of time and serves no useful purpose. The dropping of ciphers applies to 
 book entries, and to entries on bills and invoices but not to the writing of figures on commercial paper, or 
 to footings or extensions where cents figures have been added or subtracted. 
 
 26. Fractional Parts of a Cent. -When an amount involves the fractional or decimal part of a cent 
 proceed as follows : 
 
 {(I ) If the resulting fraction or decimal is less than one half disregard it. 
 (I>) H one half or more consider it as one cent. 
 
 Example. 337 lbs. of Sugar at 4|c. amounts to $14.32|^, disregarding the | of a cent the extension 
 would be $14.32. 45 lbs. of Tea at 17Ac. amounts to .$7.87i, considering the ^ cent as one cent the 
 extension would bo $7.88. 27 lbs. of Raisins at 7[c. amounts to $1.95J. considering the | of a cent as 
 one cent the extension would be $1.96. The sum of these extensions is .$24.16, six per cent, of this sum is 
 1.1196, but the discount would be entered .$1.45. Subtracting the discount from the total leaves .$22.71 
 as the net amount. 
 
 tl 
 
wmmim 
 
 wmmm 
 
 ? 
 
 39 
 
 Qy c^io-'jiJo-, (&7^/, ^eyi/. /c/A, vpoo 
 
 Foi.io 
 
 COLI'MN. 
 
 1. This is the 
 corrt'(!t LMilry to 
 make when you 
 Bt-n Milse. for 
 
 CUilh. 
 
 2. This is the 
 correct entry to 
 make when you 
 buy Mdse. for 
 a note. 
 
 3. This is the 
 correct entry to 
 make when ^ou 
 pay cash for 
 your note. 
 
 4. This is the 
 cornel eiitvy to 
 nuike wljen yon 
 sell VAm. on 
 auoount. 
 
 6. This is the 
 correct entry to 
 niiike when you 
 buy Mclse. on 
 account. 
 
 -(oai-L 
 
 ) 
 
 e. 
 
 d'ot/^ U (^^'"*« "'here'r'' ""'"^ A'^ ^^ cAe^O^i 
 
 'd-e-. 
 
 
 -^cht'^e. (Write the seller's name „^y^ Jio-te. jU . 
 here.) • ' 
 
 ^^ 
 
 /- i.tvt(- 
 
 oice. J to 
 
 e^ 
 
 Jc)-Uli- J a.'tjchti 
 
 -^€i.ve. (Write the payee's „, y, ~Cke<fU€. Jl<^. / d' . 
 name here.) / (' 
 
 T) 
 
 I of- ■fto-te- ylo-. J^'i^ 
 
 II 
 
 (Write the buyer's name here.) 
 
 ^ do^-. C (jfj J , 
 
 ((£ jSc 
 
 r 
 
 I 
 
 1-2. 
 
 Uu na 4- 
 
 ~2. 
 
 IC 
 
 
 I CO 
 
 JfUie.. 
 
 (Write the sellers name here.) 
 iof- I ni<-o-( ce- Ji o . ^ -) y 
 
 216 
 
 254 
 
 300 
 
 9 
 
 'I I 
 
 un 
 
 or. I 
 
 300 
 
 47 
 
 27. Dating the Journal.— At the top of the first page in the Journal shouhl he written the place and date; at tlie top of 
 each si'ihaequeiit page the date only. If the date changes hefore a given page is filled, place tlie new date on the centre of 
 the light hhie line immediately al)ove the lir.st traiisaotion recorded in tlie new date, as 11 is entered on al)ove page. 
 
HW IIIII 
 
 MMMHMMW 
 
 MMMiMli 
 
 W^. 
 
 S=^ 
 
 i I" 
 
 40 
 
 15 
 30 
 
 (':i.sh sjik's tliis week, .SMM.'J."). 
 Kouglit of William Mmhoii I 
 
 Write complete Journal entries for the following exercises : - 
 
 EXEIICISK VI. 
 
 .Iiilic' Ist, IS!I7. 
 
 I ((iiimuiK'cil husincsH with cash on ]i;uiil, SV'K). 
 
 Hoiiijljt ot Itohoit Watson, on my note at ID days, goods 
 
 as jier invoi •(■, S4Si). 
 I'aid fur advcrtisiiii,', cash, §,'{.r)0. Sold Will'am Mason, 
 
 on acuoiint, 25 ll>s. Checso (a \'ic. ; .SOlljs. (iian. .Sugar 
 
 (n<, ;jc. ; 5 ll)s. Jajian Tea fc .S.')i'. 
 Houghfc of James I,. Wilson, on my note at SO days, L'od 
 
 hush. I'otatous ('/. 'Jfic. 
 Hought of .lames I'aii', on acrount, I.") hhls. {''lour (n 
 
 Si.'-'> ; an<l '20 hags Klonr (a T.'x'. 
 Sold Arthur McLean 12()0 husli. I'otatoes at .T-'c. ; and 10 
 
 l)l)ls. Flour f" ShJU, receiving in part jiayment his 
 
 cheque for .TiT.'). 
 
 ush. Potatoes iit 25c. 
 ") da\s, ICiO hush. 
 
 12 
 
 14 
 
 15 
 
 in store, 
 of Adam 
 .?I5, 
 
 17 
 
 '.',S 
 
 •24 
 .•!0 
 
 .•il 
 
 Toronto, Jan. 2iul, 180!t. 
 
 1 commeneed hnsiiu'ss with the following: 
 
 I'lEsoi lu'E.s— Cash on hand, iJliSOO. Mdse. 
 .«■_'. (1(10. 
 
 LiAnii.i'iiKsMv note, at 30 days, in favor 
 Krown, for .?-2,0()0. 
 Bought from I!. Martin a Set of flooks for .store 
 
 and gave in jiayment Mds(^ .S5, cash tor halance. 
 I'oiight from Ilogeis iV ( 'o. Coal for store, .S25, and gav 
 
 in jiaymiiit Mdse., $\'>, and cash for halance. 
 Sold ( 'liarhs Havis, on account, Mdse., iJ.'J'JO. 
 Casii sales, .S1.')0. 
 
 KXKltCLSE VIll. 
 
 Jan 1st, I SOS. 
 
 1 commenred husiness with cash .?!, 000. Bought of John 
 
 Smith, on account, Mdse., as yr invoice, !?500. 
 .Sold .lames lioss SO hags Potatoes at 75c. and received, 
 
 as part payment, his note for .S50 at 8 months, hearing 
 
 interest at S per cent. 
 Sold A. M. Fox, on account, '200 Ihs. hutter (?i 2.')c. 
 Paid invoice of Jan. 1, ami was ■allowed 5 jier cent, oil" 
 
 for cash payment within 30 days. (Call the discount 
 
 Mdse.) 
 Cash sales for the month S'200. Paid Clerk .•?20. 
 Feh. I, ISOS. 
 Bought of .[ohn .Smith. Mdse., as per invoice, S400. 
 
 Sold 1). ( '. Angus 40 hags Potatoes (o 7oc. and 60 Ihs. 
 
 Jhitter ((/ '25c. 
 IJeceived as jtart payment, cash, $20. 
 .Sold James lioss 40 hags Potatoes (a 75c. id 20 Ihs. 
 
 Hutter @ 25c. Pieceived as part payment, a cheque 
 
 (■avehini, cash, .*.'{0.50. 
 Sold (lilhi'rt .'^inclaii'. ..ii his note at 
 
 Potatoes at .'JOc. 
 Cash sales this week, .^52. 70, 
 
 I'aiii, my note in favor of Uohert W.itson, $4S0. Cash 
 sales this week, §25.15. 
 
 i;t>er\cd 40 liu^h. Pol aloes On 25c. ; 5 MiN. Flour Ot^ 
 §4.25, and 20 hags Floiirf" 75c. ; and sold t.he r<nniinder 
 of my stock foi' ca.--li. .S425. Paid clerk's salary iu 
 cash, .^12. Paid rent in cash, i?l5. 
 * Debit Stock, credit .MiUe. 
 
 EXERCISE VII. 
 
 14 Sold .John Ross, on .accoinit, Mdse., .S410. 
 
 Keceived from Charles Davis, in ]iaynient of his account, 
 che(jue on .Merchants l^auk, .^150, and his note at 20 
 day.s for halance. 
 
 Keceived fvom .lohn I'oss, on account, (•he()ue on Mer- 
 chants liank, S2(J0, and his note at 7 days for .SIOO. 
 
 ( ';ish .sales, .S.50. 
 
 Sold Chailes Davis Muse., .S170, and received in i)art 
 payment his m)to at JO days for .SKMJ. 
 
 Paid my ('lerk for services, §40. 
 
 Paiil Adam I'.rown, on note of Jan. 2nd, §1,300. 
 
 28 
 1 
 
 15 
 31 
 
 Your place, Jan. 1st, IS'M). 
 
 Coumieneed business vith a cash capital of §'200. 
 
 I hought out the * Plant and (Joodwill of C. Tedford's 
 hlaeksnuth shop for §300, p.aying him §100 cash anil 
 giving him my note, endorsed hy P. Johnson, for the 
 halanct! pay.ihle .at the Molsons Hank here in three 
 months without interest. I also rented the shop from 
 C. 'I'edford at §10 per month. ((Jot nothing and gave 
 nothing. See page 42, second entry.) 
 
 Eemoved 4 horse shoes (o; 10c. each, set 3 new shoes (Si. 
 '25c. each, and rej)aired a cutter, §1.25t for L. Turn- 
 hull. The cash receipts to-day were $3.25 for work 
 and material. 
 
 Set 4 new shoes at '25c. each, and made a set of gate 
 
 hinges, 75c., for 15. lieattie. The cash receipts to-day 
 
 were §2.50 for work and material. 
 Bought of Harland Bros.,+ coal and iron .as per invoice , 
 
 ■'?25.75. The cash receipts to-d.ay were .$3.75 for work 
 
 and material. 
 • Call what you got " Plant and GocKlwiJl." t ( 'all what .vo\i jrave 
 
 on Hank of Toronio for §'2() and one on i'ank of 
 
 Montreal for .SIO. 
 ( 'ash sales for the n^outh §'20(l. Paid Clerk §'20. 
 March Ist, IS08. 
 Sold .lames Fox 00 hags Potatoes (a 75c. and I'ceeived, as 
 
 part payment, a (Iraft, at ten days after sight, on 
 
 Janu's Itoss for §15, which .Lames Jtos.s accepted. 
 iSold J.>. C Angus 00 h.ags i'otatoes (" 75e. and received, 
 
 as part payment, cash, .§10 and a chetjue on Molsons 
 
 15.iid{ for §20. 
 Received payment for draft on .Tames Ross. 
 Ijought of James Ross 10 Ijags Potatoes @ 60c. Cash 
 
 sales for the month §100. Paid Clerk §'20. 
 April 3rd, IS!»8. 
 !? James Ross paid his note, made Jan 3, hy cheque ou 
 
 Molsons Bank. 
 
 .Sold A. M. Fox 8 h.ags Potatoes at 75c. for cash. 
 EXERCISE IX. 
 
 6 Ironed a cutter for Harland Bros., §8.25 ; and set 7 new 
 shoes at 25c. each for Ij. Turnhull. 'i'he cash receipts 
 to-day Were §'2. '25. 
 
 7 Repaired a cutter, §2. '2,5, .and a cooking r.ange, 75c., for 
 R. Be.attie. The cash receij)ts to-day were §1,75. 
 
 8 The cash receipts to-day were .§5.75. 
 y R. Beattie gave me his cheque, jiayahle to my order, on 
 
 the Molsons Bank here, for the amount of his account. 
 The cash receipts to-day were §4.85. 
 
 10 Removed 7 shoes @ 10 cents each and set 1 new shoe @ 
 25 cents for L. Turnhull. The cash receipts to-day 
 were §4.25. 
 
 11 L. Turnhull gave me an order on Harland Bros, for the 
 amount of his account. The cash receipts to-day were 
 
 15 Sold the Pl.ant and Goodwill of the shop to W. .Seeley for 
 §350, receiving §200 cash and his note for $150 payahle 
 in two months. 
 
 Paid C. Tedford half a month's rent and he .agreed to 
 accept W. .Seeley as tenant in my stead. 
 Work ami Matfrlal." { Call it " Work and Material " also. 
 
I! 
 
 i 
 
 l-WllWilfi'l^ii'.tvl'liiiiiPIIIPPPf^fflJ^ 
 
 CHAPTER IV. 
 
 TllK LKDCiKlJ. 
 
 W()t;ktn<; a si:t. 
 
 1. Up to this piiiKo, we have confinod the instruction to ilic book-keepiui,' <i£ a Journjil. For tho purpose 
 of illiist Pilling' thn work of k<H>ping a rjf(li,'('i', we havo s('lt'ctf(l a sot of transarlinns thai, might ot-ciir in the 
 cnnduc'i in;,' iif n Imsincss dnrini,' a month. On tiie next tliree ])agi's is .siiown the .Iniirnal, wmkcd out in a 
 luannrr that the pupil will um' as a iiindc! for working similar sets. On the pagfs following juc the Ledger 
 jiagcs ;iiid iii'^t ruct ions relating llicrclo. 
 
 2. A Ledger is a hook of acfcjunls. 
 
 3. An Account i^ a page or ])artiof a page, divided etpially into a left half page and right half pag(! : 
 The Irft lialf page contains a list, of all the <iceasions and amounts of a ]iartiruliir value that were got Wv the 
 business; tlu; right half page contains a list of all the occasions and amt)uiits of the same \alue that were 
 Lfixcn liv lln^ liusiiiess. 
 
 4. Debits i^ the name given to the list on the left half jiage. 
 
 5. Credits is the name gi\cn to the list on the right half page. (Si'(> the foot of ]i;ige ,'5l'). 
 
 6. A Posted Entry is the name of one line of the list of debits or credits. Ii contains the date, 
 sometimes an eNplaiial ion. the ]tago of the Jouriud from which the entry was derivi'd. and the amount. 
 
 7. An Original Entry belongs to the Journal. See par. S, ]iage '\-2. It contains the material for fN-n 
 pon/f'il fiifrlis : Ih'iice, th(i naiite hmible l"]ntry i5ook-keeping. In Single ICntry IJook-keeping the original 
 entrv c<iilains material for only oin- jiosfid cutrij. 
 
 8. Posting is the act of making up accounts from the original entries, 'i'he .loufiud is searcheil for all 
 the occasions on which a partii'idar value was got. Afterwards its }>agcs ai'e scainieil for all th<! occasions on 
 which the same vahu; was given ; the occasions with amounts ar*^ set down as the debits and crtidits of that 
 particular value. Tlu! debits and crtulits of every other value mentioned in the Journal aie prepared in the 
 same maimer. 
 
 9. "Cash is Debited" in thf l.nhirr means that a posting etitry has been nuule ,>mong the debits of 
 Casli. [ii Ihf JniiriKii it means that an original entry ha.s "Cash" set down as the \alue the business got. 
 
 10. l''or the exercise below th(^ .foio'nal is worked out, but the pupil must work the same for himself 
 and compai'c results. The numbers in {\\e folio ciihoiiu, to the left of the debits and credits are not to be 
 put in until the posting begins. When }"ou have compared your work t'arefully, turn to page A'k 
 
 SET T. 
 
 'I'oniiito, Sept. 1st, lit . 
 
 K. A. StuiU't iiivrsts 8">,0U0 cuhU iu a llour, fueil, 
 
 ami grain Imsiness. 
 Sei)t. 1 Engages S. M. .rones as clerk .at §.■?() a luontli. 
 1 I'ay.s rent for store in ailvanco .S")0. 
 1 Buys tiio foilouinif statinncny, ete., from N. I'irisbin 
 
 fur cash: .(ournai, !?l2 ; l-edgcr. 8-; Kiling Case, 
 
 8.H ; Ink, 20e. ; Tens, 7.")c. ; Pencils, Lie.; Tablet, 
 
 'JOc. ; Knvoloiies, 45c. ; Total, .'j?S.7r>. 
 1 P.ays .S'^ for a gas meter. 
 3 Hiivs from Imperial Mills Co., as y-ov Invoice, for 
 
 cash-lOO hl.Is. Roval Flonr, §4 7"); bO(H) husli. 
 
 Corn, ?>2c.; l.OOO hu.sli. Wiiite (tats, >J4e. Total. 
 
 8 1, ();{."). 
 3 Buys from Scott Milling Co., as per Invoice on 
 
 accouTit, 10 tons Middlinizs, .$1'J; B> tons Bran. 
 
 §11 ; 2 tons Linseed Meal.!? IS. at). Total, .•?'2(;7. 
 .3 Pays cash for Insurance, §l"2.r)0. 
 5 Biivs* from Imperial Mills Co., .as ])er Invoice, ou 
 
 account, lOO bhls. Hoval Flour, §4.70; 100 bl-ls. 
 
 Lilv Flonr, S4.S0; 1,000 bush. Corn, 32c.; 1,000 
 
 l)usli. White Oats, 24c. Total, $l,51.'5. 
 
 5 Sells H. Iliuigerfonl on account, 200 bush. Corn, 
 
 S.'Jc. ; lOO bush. White Oats, 27c. ; 15 bbls. Lily 
 Flour, §5.30. 'I'otal, 8170.50. 
 
 6 Sells for cash to sundry persons, .300 bush. Oats, 
 
 27c. ; 10 bbls. R. Flour, $5.25; 2 tons Middlings, 
 $13 ; I ton Linseed Meal, §25. Tot.il, §170.50. 
 6 Sells to N. H. Pearson, on account, 5 tons I'.ran, 
 $12; 500 bush. Cats, 27e. ; 2 tons Middlings, §12 ; 
 
 500 bush. Corn, 35c. Total, $394. 
 
 Sept. 10 Sells for easli to. I. I'. .Murpliv, I ton Linseed Meal, 
 §2-'; 20()hu;,li. Vmvw. 3.'.e. ; "Jubbls. \\. Klour, .§5.25; 
 200 bush. Uals, 270. 'l'oi;.l. .•s-J77. _'."). 
 
 12 Receives from II. I huiu'i rfoi'd on account, a clK>i[ue 
 for 8.-.O. 
 
 12 Buys from D. ( '. Brown, for casli, 2t) tons Chop 
 
 Feed, §12 ; 20 tons Corn Meal, §13. Total, §500, 
 
 13 Buy.s from Scott MilliuL' Co., as per Invoice, on 
 
 account. lOtons Middlings. -812 ; lOton.s Bran, 811; 
 5 tons Liuseed Meal, 818.50. Total 832J. .")t». 
 115 Sells for cash to E. C. ITainnmnd, 20 bbis. B. Flour, 
 §5.25; 4 tons Middliu>;s 812 ; 20 bbls, L. Flour, 
 §5 3(1; 2fl0 bush. Corn, ,35c. ; 5 tons Bran, §12; 
 2tl(J bus'i. Oats, 27c. Total, §443. 
 
 IG Scdls 11. ITungerford on account, 5 tons Middlings, 
 813 ; 5 tons Bran, 812 ; 2 tons Linseed Meal, §20 ; 
 20 bbls. L. Flour, ,§5.30. Total, 8271. 
 
 21 r>uys from Iui))eriiil .Mills Co., as jur luxDicc foi- 
 ('ash, 1.0(1(1 hush. Oats. 24c ; I.(i(M( hush. Coin, 
 .•!2e. : InnhliN. L. Flour, .84,sij; ion l.hls. \{. Flour, 
 84.75, Total, 81,515. 
 
 27 Pa.\s Imperial .Mills ('o. in full of account foi' in- 
 voice (jf 5tli, 81.515. 
 
 27 Receives from H. Hungcrford, cash iu fidl of 
 account, §307. 5(J, 
 
 30 Pays clerk's salary, 830. 
 
 .30 Pays ■Johnson ("arta»e Co., in full of account, for 
 
 delivering mcrehaiidise, §17.80, 
 
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 POSTINCJ. 
 
 il. 'I'iiUl' (iti rxcrcisf! book or foolscap iiiul rule two or throo pa<,'e8 exactly similar to those sIk.wm dn the 
 iiRXt two j>ai,'('s of this hook, e.cwpt that the columns may bo made a little wider. 
 
 12. Pii<,'o your .loiiiiiid Icav's with the yame imml)ers as wo have here, i.e., 42, l."?, 1 {, and pa,i,'o your 
 lifdj^'cr tC), 17, etc. 
 
 13. Write E. A. Stuart Stock at the top of your first page as it is written on the next patje of tins 
 hook. Thes<f Le.li^'er titles should lie written in a lar^'(; plain hand which y<iu should practise. 
 
 14. Tuni to the first page of your Journal and transfer that part of th<^ first ori^'inal enliy relating (o 
 "K. A. Stuart Htock '' to thc! Ledger account, writing first ".')000" in the dollars column <pn the light or i red it 
 side, setting down each figure with tli(> utmost care. Next write "Sept. 1 " in the date column, 'i'hcii write 
 " 42" in the folio column of the Ledg<'r, just to the left of fiUdO. 
 
 After this wi'ite "40" in the f(»lio cnluuin of the .Fouinal on tlie same line with " V.. \. Stuart Stock." 
 
 15. 'I'ako your rulei- and lay it aci-oss the Fjedgcr pagt^ ininirdialcly nrch-r ,')(JOU, then move the ruler 
 down .'ilxjut one-eighth inch, so that it will lie midway l)etween two light blue lines, llulo a liglit le.nl pciuil 
 line across the dollars and cents eoluiiins. 
 
 Al'ore this line set down ."»()()0 in figures as small as pin heads, but accurately under the larger ones. 
 
 16. riace your j)enci' on the light blue line on which you wrote "."^ept. l,"and counting that line "one, ' 
 get line "live." On it rule a slur/le line across the centre columns. '1 his will make a line about 2.1 in. long. 
 
 Count the line you have just ruled "one," get line " three" and on it rule a iftm/i/i' line from left (o right, 
 e.\t<'nding from tin; date column on the left to the folio column on the right. 
 
 Wiiie CdiSh between the single; and double lines, as it is written in this book on the next page. 
 
 17. Turn to the Journal an<l find the first j)lace rosh ('.s- dchili 'I. From the first Journal entry write ".">000" 
 in the dnllars column of the cash account on the (U^l)it (left) side. Ne.xt write "Sept. 1 " in the date coluinii. 
 Then write " 42 " in the folio column of the Ledger just to the left of .'lOOO. 
 
 After this write " 40 " in the folio column of the .lournal on the sauK! line with " ("ash." 
 
 Look up the next (M>it o/' cas/i. It occurs on Sept. Glh. Knter "170.50," "Sept. 0," and "12" in 
 
 llie Lt'ihjir ; then enter " 40 " in the JoiirnaK 
 
 Finding each of the other del>it.s, enter them in the .same way. ( 'ompare your entries w ilh those of this 
 
 book and see th;it they are the same. 
 
 18. Lay your ruler acro.ss the account on the same light blue liru; with .'597.50; lower it till it is midway 
 down to tli(> next light blue line ; rule a light line across the dollars and cents column on the debit side. 
 
 Add th(! figures above, setting down the sum in pindiead figures (ibm-e the light lead pencil line. 
 
 19. Now look up the credits of Cash, the first of which is Sept. 1st, 50 
 
 Write the three things;" "75," "Sept. 1," and "42" in their proper columns on tlie credit side. 
 Then put "40" in the folio column of the Journal. (It is absolutely essential to write each of these four 
 things. Never get careless and i>init one, particularly avoid .skipping the entry for the j)age number.) 
 
 Set down each of the other credits as you find them, but keep them in order of date if possible. 
 
 Rule th(! light line and add the credits as you did thtMlebits. putting the sum (juite close un<ier the last entry. 
 
 Put your pencil on the line on which 17.80 is written, counting it "one," get "five"; rule the 2.',-inch 
 ingle line, counting it "one," get "three"; rule the double line as before for Cash. ' '. n write between 
 
 81 
 
 the 
 
 ines 
 
 Merchandise. 
 
 20. Post the debits; rule the line and add. Next post the credits ; rule the line and add, 
 
 21. Open an Expense account at the top of a new page. Post it as you did cash, but in.sert 47 in the 
 .lournal folio column. There are no credits ; .so the account is finished when you have added the debits. 
 
 22. Rule headlines and post in the same manner the accounts for Scott Milling Co., N. H. PearSOn, 
 Henry Hungerford and Imperial Mills Co. Keep them apart by counting the five lines as directed for 
 Cash and Merchandise. If you have not room carry as numy as you need to another page. 
 
 23. Now examine the Journal pages most carefully, and if j'ou find numbers in the folio column opposite 
 each flebit and each credit, you may assume you have every (me posted. 
 
u 
 
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 24. i''>i' till! entries vdti lia\e just made iiotiee the oi'dei- of wmk in 2>i).stiiig, 
 
 (1) Kiitei- tlie ainouiib I 
 
 {•2) Kilter Uie diile 
 
 {'A) l''iiiter tlie .louiiiiil lia,ue| 
 
 (1) I'jiiter tlie LtMl^er page in llie Journal. 
 Occjisioiially ail explanation may lie iiiaile in tiio wide c:)luin:T hotween tii(( date and the folio column, Imt 
 for tlie majority of entries an exj.l.iiiat ion is (jiiilo unneci'ssary. I'>y using the pag(^ numbers for I'eference, 
 the original entries may 1)C L•oll.^ulled and full explanations (ilitaincd. 
 
 25. The ])iii head figurt'S are set down lightly in lead pencil, so that, they may Ik; easily reiiio\('d. Some 
 liook- keepers, howescr, desire to keep tln'm in their accouni s permaiieni ly, and for thai; iraxni write them in 
 n'i\ ink, aiK. i'ul<! (Ik; light line lieiieath them in ii'd also. lb Mill he seen that should ether cut lies he iiiadt; 
 under these footings, that oil tin? occasion of next addition, the footing.s can lie added instead of the ligures 
 {il)ov(! them. For ii thousand accounts added twelve times a year this eilecrs a great saving. 
 
 26. All ruling is correctly done in red ink, but in these sets the; pupil may use lead pencil if ht> has not 
 red ink at. hand. 
 
 TIUAL T'.ALANCK. 
 
 27. I'ule a shei'b of .Toiirnal jiaper, anil on it writ(^ the naiiier, of all i\w f-edger accounts except Tmpi'rial 
 trills ("o. and ilcnry llungeiford. 'i he}'^ ai(^ omitted liecause they do not allect the wmk, for the deliits iiud 
 credits are 0(|ual. See the work below, and take it as a model. 
 
 Acco-ding to the jirinciple of eipial debits and credits, the total of all the debit footings must equal the 
 total of all the credit footings. 
 
 Til your worlc, transfer all the debit f<iotings to the first money column and all tin; credit footing.s to the 
 second or outer column. Add these and test tlu; ('(juilibriuiii. 
 
 If it balances, it evidences the corrcH-tness of y.mr work, but does iioti ])rove it. For instance, if voii 
 make an eitry on the credit side of ^Merchandise that should ha\e been made on the credit side of Cash, your 
 tcor/,- will be w roiig but your Trial J^alance will be right. 
 
 There is no royal road to a -t Trial Bakaiice. J/'yours is imm;/, <jel it riijht. 
 
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 RULING ACCOUNTS THAT BALANCE. 
 
 28. The accounts that have ci|ual debits and credits are added and ruled, as shown for Imperial Mills 
 Co. and Henry Hiingerford. Li case of the former addition is unnecessary, and the ruling is curtailed. 
 
 Erase the small tigiires, set your ruler close under the. 151,0, and rule a double line in three sections. 
 The iirst section on tli<5 left crosses the date column ; then skip the debit e^vplanation cofitmn. and 
 commencing at the folio, cross it, the debit money column and the credit date column. Next sAi)^ the credit 
 i:i-///itiiii/itni r<tl,t)tiii, and comiU'Micing at the folio column, cross it and the cri'dit money column. 
 
 For liungerford's account, .set your ruler close under '271 and 397.50. First rule a single line acrcss 
 till' diillars and c ,its columns of each side. Then ino\e your I'uler down to tin; next light blue line and rule a 
 double line in thice se.'tions, as you did for the other account. On no occasion must you bo careless regarding 
 this line. Never leave out one of the section.s, nor .should you all< w the ends to over-run. 
 
 .After fhiishing the ruling, set down the footings in plain black ink figures. 
 
 29. ^^ here an account balances but the number of entries on one side is in excess of the number on the 
 other, the ruling must ix; on the same level, and the eipial totals on the same light blue line. See Cash 
 account, page 5 1. 
 
() colmim, l)ui 
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 I if li(> lius not. 
 
 xccpt Tinperial 
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 n column, 'itid 
 fc skip the credit 
 II. 
 
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 3 line and rule a 
 reless regarding 
 
 ! number on the 
 line. See C'ush 
 
 I 
 
 49 
 
 CLOSlNf; ('ASH A( COrNT. 
 
 30. See the Cash account on \y,\,y^i' 51. Tlu)U!j(li we have been compelled to re-write the accounts, you do 
 not need to do so. 
 
 Tho purp(j.se of closing an account like this is to gi\e it a ffesh stact for the m-xt month's entries. 
 Although there are no new entries, and no room for posting them l)eneath the old accoinit, yi-t we shall give 
 the instructions for closing. 
 
 An account is not to be ruled oiV unless the debits are eijual to the credits, or unless it is being transferred 
 to a new page. Since in this account the credits are not ('(jual to the dei)its, a fictitious entry is made in red 
 ink on the credit side, to make them eipial. You will titul the ditTerence to he lO^l.i'O. liemove, if 
 necessary, the .small figures on the credit side and set this n imljer f)n the next line below the last pen- 
 written entry, 17.80. In the explanation cuhnnn wi-ite " JJalance," and in tiie dale column, "Sept. 3(1." 
 
 Since the deliits and credits are now ecpial, rule lim.'s and .set down the ecjual footings, as you did for 
 Hungerford's account. In doing this you will observe that there are 10 credit entries and oidy G debits. 
 Consequently to bring the work on the same level for hoth sides, it will be necessary to leave 4 lines blank 
 on tho debit side. 
 
 Remember that the footings in tiny figures are independent of one another, and are put down 
 close under the last pen-written entry, on one side, regardless of where they may come on the other. 
 But with the equal footings of the closing it is not so. The side having the more numerous entries 
 decides the position of the footings for both sides. 
 
 Tho fictitious entry made in red, on the cicdit side, while it made the sides of Cm.s//, eijual, put the Ledger 
 as a whole out of balance. To corr(>ct this, and to start the account anew, an entry has to be made on the 
 debit f>id'\ On tho first line, under the double cross ruling, .set down an entry in black that is the exact 
 counterpart of the one made in red, i.e., write "i^ept. 30, Balance, 1651.20," on the del)it side. 
 
 In theoretical book-keeping it is quite impossible for the pupil to get the other and true meaning of 
 "Balance." Were he a teller in a baid^, or a ixiok keeper haiulling man}- receipts and payments, his chief 
 concern would be to find, on counting the money in his drawei, that it c-imounts exactly to 1651.20, and 
 therefore bedances with the account. 
 
 31. The jiersoiial neconnf.i other than those we have already closed are to be left as they are. Wlien one 
 of these accounts fills a page it is rided olT, hut the footings are not necessarily equal. The true footings are 
 usually set between the single and double ruling and then carried forward to the new page. Some book- 
 keepers, however, balance the account as we have done for Cash and carry forward the balance. For one or 
 two very good reasons their plan is not to he I'econnnended. 
 
 CLOSING IMERCHAN DISK. 
 
 32. Tlie purpose of closing this account is a double one. As for Cash it is desirable to start the account 
 anew, hut the chief object is to find the profit made on the .sales. 
 
 The pupil will easily observe that the debits are the cost and the Credits are the sales. At the 
 foot of the last page f)f the Journal is given a list called Inventories. This list comprises the names, 
 
 quantities and cost price of goods unsold when we began the work of closing the accttunls. 
 
 Had all the goods purchased been sold we could easily have obtainetl the amount of the profit by 
 subtracting the debits from the credits. That not being the case we have to iniayine them as being all sold. 
 V7e set up a fictitiou.s sale of the goods of the Inventory at cost price and add it to the other sales, thereby 
 neither increasing nor decreasing the profits on the geimine sales. Having now efTected a complete .sale, we 
 can find the profit by subtracting the cost from the selling price, i.e., the debits from the credits. 
 
 Write a fictitious entry in red on the credit .side of Merchandise. Remove the pin-head footing, or 
 better, in rather small figures immediately under them write, "Sept. 30, Inventory, 3563.50." 
 
 The next object to be attained is to make the debits balance the credits. They differ now by the 
 amount of the g-'^iu- ^^>' tbe debit side we writer in red, "Sept. 30, Gain 141.25," and tho sides of the 
 account will be e(]ual. Rule off and set down tho ecjual footings in plain large figures between the single 
 and double rulings. 
 
50 
 
 Theso two ontrios have made tlio accomit l)alatice, l)ut tlicy liavt- thrown tht? I^edger out of balance. 
 We put it right, so far as thn liivontory is concerned, hy now imagining tlu^ goods to be re-purcliascd, and 
 having done .so we makt! a fictitious entry in hhtrk on tlic d('l)it side, on tlie lirst line innnediately under tiie 
 doul)le ruling. The account is now ready for further posting. 
 
 33. Opening Loss and Gain Account.— Tlio Ledger is still out of balance by reason of the e-.try we 
 made on tlie debit side of .Mdsc. for the amount of the gain. The object of making this entry was a double one. 
 The evident intention was to make the Mdse. account balance, but the real purpose was to transfer the gain to 
 the credit of Stock account, and therel)y inci'ease tlic claim of the, propnHor im the business. But the gain i.s 
 not transferred direcU}'. Itisfirstcarrie.il to a branch of Stock account calle<l " Loss and (Jain," where it 
 will b<! diminished by the los.ses that have been incurred, and then carried to .Stock account. 
 
 On one of the Ltnlger pages open an account witii the title LosS and Gain ; on the credit side of it 
 enter "Sept. 30, Mdse., 141.25." This entry will put the Ledger in balance. 
 
 CL()STN(J EXPENSE ACCOUNT. 
 
 34. The deliit side of this account shows the cost of certain things that were purchased for ns(! in 
 the conducting of the business. None of them have been sold, but some of them remain on liand that have 
 not been consumed. We imagine a sale of these at a suitable price, and make a fictitious entry in red on the 
 credit side for such a sale. 
 
 Then sul>tract this new credit from the original debit footings, and we have f/ie /i>ss from this scmrce. 
 The credit is less than the debits by the amount of this los.s. On the credit side write " Sei)t. 3(», f>o.ss, 
 102.90,'' and the account will lialance. Rule it olF, and set down the ei\\iaX totals between the rulings. 
 
 The Ledger is again out of balance by reason of these two entries. We put it right for one of them bv 
 writing an entry for an imaginary re-purchase of the Inventory, and having done so we write ;i lict itious 
 entry in hfruk under the double ruling, on the debit side. 
 
 The loss entry is to be set down ori llii; debit sid(^ of liuss aiui (lain .Account, to diminish the gain. 
 Write there in. llnck, ''Sept. 30, E.xpen.se, 102. liO."' 'i'hc [..edger is again in balance. 
 
 CLOSING LOSS AM) (i.MN A( 'Co 17 NT. 
 
 35. This account is part of ihi^ Stock Account, and instead of allowing the excess of the gain oscr the 
 loss to remain here, we transfer it to its proper p|ji<'e. 
 
 On the d(!l)it si(l(> of Lons and (Jain wrili; in Idack. ' Sfpi. .'id. Net (iuii;, ;?S.. ■>.■)." 'i'hc account now 
 balances. Rule oft", and set in the footings. 
 
 The Ledger being out of bfilani-i', the ;'.|uilibi-ium is restored by wiiting on th(^ credit side of Slock in 
 red ink, "Sept. 30, Net tJain, oS..'?.").' 
 
 CLOSING STOCK ACCOUNT. 
 
 36. The object of this work is merely to start the account ani>w. On the debit side, //,' vd ink, write 
 "Sept. 30. Present Worth, .")0.'>.'''.. ">").'' The sides being now ec|ual, rule oft" and ,set in tlus footings. 
 
 But the Ledger being juit out of balance, we enter in black ink on the credit side, undertint rulin<', 
 "Sept. 30, Present Worth, 503.S.35." 
 
 iL\L.\NCE OF ]'.AL.\NCES. 
 
 37. \Ve were carefid to make no lietitious entries /// red for whi<'h w(^ ib'd not wi'ite counter entries ik 
 black. The red entries |nH the Ledger out of balance ai\d the black oties restored th(> eijiiilibrium. 
 
 P.ut to pro\-e that our work was accurate, we proceed to take a Trial l>alanc<' of the Ledger as it now 
 stands ready foi a new month's business. This Trial ]}alance we call " balance of P.alinces." AVrite in it 
 the Prisent WortJt of Stock brought d()wn, the balance of Cash, tlie I nri'ntoriis of Alerchandise and K.\j)ense 
 and the foatinijs of the unclosed personal account.s. Test the balanci; of these balances as you would an 
 
 ordinarv Tri.-d Balance. See the f 
 
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 STATEMENTS. 
 
 38. A Si!il('iiieiit is u fnrin wliicli sliows in Iji-iof the condition of t lie business - wlwit fi;ains have been 
 ])ro(luce(l, wlijil losses inciiired, what excess <jr net gfiin remains, wliat Uel)ts ure owing, what values are on 
 hand to jiay them, and what excess remains when the deljls are jiaid. 
 
 39. Classification of Accounts. — Before a Statement can be made, the pupil must master the classifi- 
 cation of accnunts. lUit i\\('. classification of accounts dep(.'nds on a cla.ssitication of values, which we give 
 herewith: — Class T.— iSlnncy, Piomises. Class II. -Labor, AVealth, Interest, Kent, etc. 
 
 Money and Promises are always parted with at the .same valuation at which they wcie received ; that is, 
 they produce no j)rotit nor loss. Those of the other list change tlieir valuation while passing through the 
 l)usiness. Some produce a pnitit, sonu) a loss, others a total hj.ss. INIoney and Promi.ses give ri.se in the 
 following accounts : -Cash, IJills Ileeeivable, Bills Payable, John Smith, etc. The values of the other list 
 produce the accounts : -Md.se., Expense, Heal Estate, Interest and J)iscounls, etc. Therefore, we cla.ssify 
 accounts as follows : 
 
 1. — UkSOURCE ami I.IAlilLlTV. TI.— LoSS AND GaI.V. 
 
 Mdse. 
 
 Expense. 
 
 Ileal Estate. 
 
 Interest and Discount. 
 
 Rent. 
 
 Chattels. 
 
 Furniture and Fixtures. 
 
 Collections and Exchange. 
 
 Connnission. 
 
 Shipment to A. Boles. 
 
 Cash. 
 
 Bills Receivable. 
 
 Bills Pavable. 
 
 John Smith, etc. 
 
 (Stock.) 
 
 40. Resources and Liabilities. -TJabilities are pi-omises of the proprietor that are outstanding. They 
 ai'e recorded in the Bills Payable account, and those personal accounts which are debts luisettled for g(jod.s 
 purchastsd on account. Resources are not confined to money and promises; while they include all money and 
 those promi.ses in favor *»f the proprietor, they extend to ami include the goods of" the Mdse. inventory, the 
 goods of the Expense inventory, the inventory of the labor that is prepaid, and even the inventory of interest 
 that is j)repai(l. But interest unpaid and labor performed, but unpaid, are Liabilities. 
 
 Therefore we state that the Resources and Liabilities of a Statement are: — (1) The balances of the 
 Resource and Liability Accounts. (2) The inventories of the Loss and Gain Accounts. The inventories 
 are obtained from tak'iwj stm-k. The balances are obtained from subtracting the sides of the money and 
 promise accounts of the Trial Balance. 
 
 If the debit side of a promise or a money account is the greater the balance is a Resource. 
 
 If the credit side of a promise account is the greater the balance is a Liability. 
 
 If an inventory is an unrecorded debt that the business owes, it is a Liability. 
 
 If an inventory is wealth unsold, or interest, rent or labor prepaid, it is a Resource. 
 
 41. Losses and Gains. Merchatidise account or its branches should product! the profits. Expense 
 account or its branches slundd produce the most of the lo.sses. Real E.state and Interest and Discount and 
 some other accounts may produce either a gain or a loss. Before it can be asceitained whether an account 
 produces a loss or a gain, tin; inventories nuist bo added. Add resource inventories to the credits. Add 
 liability inventories (uni)aid interest, rent, or labor") with the debits. 
 
 If a Loss and Gain account, with its inventory added, has the debits greater than the 
 credits, the balance is a loss. 
 
 If a Loss and Gain account, with its inventories added, has the credits greater than the 
 debits, the balance is a gain. 
 
 42. The following general rules may be learned, but we must presuppose inventories added before they 
 will apply. 
 
 (1) If the debits of any account exceed the credits, the balance is a Loss or Resource. 
 
 (2) If the credits of any account exceed the debits, the balance is a Gain or Liability. 
 
IWWSRiJMWMewMaeMftm 
 
 54 
 
 rt/a??cc Cj 
 
 ^AyaM 
 
 /^^O-J 
 
 J/:c./^ 
 
 C<K^/(. 
 
 f{J,S 
 
 ss 
 
 u,^/ 
 
 J6 
 
 it' 
 
 iJJ(3 
 
 f^O 
 
 t.f lilJD ITT 
 
 
 /<7 
 
 /.r 
 
 TmW 
 
 ^s^ ,^^^ 
 
 J'^ 
 
 .'^6::^7 J!^ 
 
 -^ 
 
 y/t7/^/nt€nt (^/ '(r\ c ^ ' yu/^i ^ ^ ^t'/.J^jiejj, 
 
 ly^. 
 
 f^. 
 
 .^/^^_ 
 
 ___ 
 
 
 
 // " 
 
 
 li 
 
 
 
 /f e^€Jii^if'i'J 
 
 |l 
 
 
 
 ^^.x/i y /^^ 
 
 ^6\ 
 
 
 
 '/nd!.xe 3M3 
 
 :je 
 
 1 
 
 
 
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 /^ 
 
 
 
 
 
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 /^ /■' ■ /■' ^ _ ., 
 
 1 
 
 
 
 
 
 
 cy--t.€C<-' tt I {<^,J 
 
 
 
 
 '^oo-^' y/l^/^/^ii tr /'c^. > 
 
 
 ,^M/ 
 
 (^(^ 
 
 
 
 * ^ 6/. J^tc^Uj ^>^yn / /«< '0 i //f \ 
 
 
 r3'03S 
 
 3:r 
 
 
 1 />■...-._. 
 
 
 
 
 
 
 , J tA t /t.<J 1 
 
 
 
 
 mr/.)e JcrU> /■/32.2f \ 
 
 
 
 
 
 A^t.r.fAny 3^^3.JC^ ! 
 
 i 
 
 ji 
 
 
 
 
 :7ottr/ ' ^y'f'^J^ 
 
 
 
 
 
 
 
 60. >t J/M.^^ 
 
 1 
 
 
 
 
 
 
 .<^.^</r /^/.^^ 
 
 
 
 //./ 
 
 2^ 
 
 
 
 /r 
 
 
 
 
 
 
 
 ^ jZ-Cj.J^.J 
 
 
 
 
 
 djcAr>.,Jc ^-^^J-Of \ 
 
 
 
 
 
 
 Jic.y., Jr^yv. /^ ^ 
 
 
 
 
 
 
 i/e/ /:vj^ /^^-^^ i 
 
 
 /o:i 
 
 ^0 
 
 
 
 * (f'Y/. J/(<<xitJ /^et^a^Tz I 
 
 3S 
 
 3^ 
 
 
 
 / 
 
 
 — \ 
 
 
 
 
 J ft >// ///^/^// 
 
 ! 
 
 
 
 
 ^. Ct. U/<t^tt/J J/'*iiJc<> ^ t^n f tt-t 
 
 
 1 ^ao 
 
 
 
 
 ,, y/^^ \ycK^^^ 
 
 
 3S 
 
 3^ 
 
 
 
 tyfc^cj^zl ^lor^/i ! 
 
 t ^C3S 
 
 3^ 
 
 
 
 
 1 
 
 1 
 
 
 
 
 t; 
 
 1 
 
 
 
 
 %Ri.d Ink 
 
 1 
 
 1 
 
 i 
 
 ! 
 
 
3^ 
 
 f^{) 
 
 r/^ 
 
 
 
 
 
 ^ S^ 
 
 
 1^0 
 
 r\3f 
 
 2^ 
 S 3^ 
 
 mmt'^ ■:- # <^^fk-i^li:'^.. V.v^,.*i«t*. ^41*, ,*.A,«, /.Si 
 
 65 
 
 43. Net Investment is tlm IciLui'-o of Stock nccount. Jl is a Liahility, but .siiico it is a (lcl)t tlif 
 Idisiiics.s owes to tlui propriotor it is considofcd as riot lieiiig on the same fodtiiig as tluj others. 
 
 44. Present Worth means the surplus jf tlio Resources over the ordinary dehts. 
 
 45. The Net Gain added to the proprietor's net investment should givo the I'resent "W'urth. Since 
 the Resources minus the Liabilities gives the same, the pupil siioull observe that (he Summarv of the 
 Statement is a ])r<iof of tlie correcttiess of tlie work. 
 
 46. Net Loss, and Net Insolvency, are the opposites of Net (Jain and rresent AVorth respectively. 
 Tf tlie Net Loss is so great as to exceed the pi'oprietor's net investment, the business is said to be insolvent, 
 and under such circumstances the Liabilities will exceed the Resources, 
 
 47. The IJalance Sheet given below is an old-fashioned form of statement, but very suitai)Ie fnr showing 
 the results of sets and exercises. The pupil is advi.sed to use it occasionally. 
 
 C 
 
 K^^A?rY MyY. .A/< m /^ry 
 
 
 ""Mc 
 
 ^/rr< H hA-> 
 
 1 ■ ■ — 
 
 '^■>-. 
 
 /< )'U-/) 
 
 W\ 
 
 W^^ 
 
 ^.iCHfff\ 
 
 A,ft/(nA'r) 
 
 
 Af 
 
 (fy/ J/^af^^ J^rf/: 
 
 
 fru 
 
 
 
 1 
 
 
 
 
 
 
 
 
 /,( 
 
 /;..)/ :/.xyy 
 
 IJJ 
 
 /./.v/ 
 
 ^./ 
 
 
 ! 
 
 
 li^l 
 
 2( 
 
 
 
 
 U 
 
 '//U^r f .A,,' J.^/f)JO //JA 
 
 .u 
 
 /w^j'i 
 
 
 101 
 
 ^./ 
 
 JJCi 
 
 d'f 
 
 
 
 
 /// 
 
 (f'r/uH.u /./;.,. /'/ /J) \ /^^'f^ 
 
 
 
 Ua 
 
 U< 
 
 
 
 1^1 
 
 IJ 
 
 
 
 
 /.^ 
 
 //.yr /ir,r >.-7^ 
 
 3'/A 
 
 
 
 
 
 
 
 ,//// 
 
 
 
 
 
 47 
 
 ././V ///V/,>.r/ <"< 
 
 
 
 m 
 
 ^('\ 
 
 
 
 
 
 
 f.iV 
 
 />V 
 
 
 
 / 
 
 IJ((S 
 
 37 
 
 ua.) 
 
 ,W 
 
 1 lO..' 
 
 </v 
 
 U, 1 ■ 
 
 ^.-r 
 
 ,7/ ■/ -r 
 
 ^'i> 
 
 J J' '/ 
 
 JO 
 
 
 * 
 
 S//.M,rnr^ //</ .^AffH 
 
 . 
 
 
 
 
 \ J»' 
 
 3,^ 
 
 i 
 
 
 
 
 
 
 
 
 <^'//;M^fif/jM/ /,^i.^.y,„< „/ 
 
 
 
 J((C 
 
 
 \ihi ay //>/ 
 
 Jf 
 
 
 
 
 
 
 
 r/(/f/ /a / Cf^.'/ ,/ 
 
 
 : .iS'-i^ 
 
 \\ 
 
 
 
 
 
 
 
 * 
 
 /:./? J/.r.rf6MiMu/^/rf//t 
 
 
 1 ' ; i ;: 
 
 1 1 1 1 !l 
 
 
 
 
 Vu'3's 
 
 ■)J 
 
 
 
 
 
 
 1 1 
 
 1 :i 
 
 ; 
 
 
 ^(</r 
 
 Sf\fC27\Si 
 
 
 
 
 
 
 ' ■;; ^' 
 
 M I'h 
 
 
 
 
 
 
 
 
 46. Observe the form and rulings of the Statement on the 1-ist pripe. er the Halanoe Sheet on this one, 
 Trial Halances and associated invciitdl'ies iii the exeroi.ses liilow make out Stateiin'iita .similar to olio or tlie <illn;r 
 
 (I). Mark the Stork acrcoiint tliiis, x. 
 
 ('!). I'iik out the ae.'oiiiits that are ii.'cords of money and promises and mark (hrni with a cheek mark, j^. 
 
 (3). tlo over the list and douMe the eheek mark ( \ \ ) opjiosile those that have tiie debits grc.itcr than the 
 
 (4). \Vitiioiit exetiition tiio inventorifS gi\eu below are Ivesources. .Add them with the ereaila ; and fo 
 as yet unehecked, and wlnrein the credits cxeti d the dibits, mark tin m with a heavy dash, tlnis, — - 
 
 (.")). 'i'ho .leeonnts unmaiked are distinj,'uisheil l>y beini; unniaiked. 
 
 Set down as Jiesouiees (i) all inveiitoiies, (ii) the balances ot' all aeeounts markecl {\' \'). 
 
 Set down as Liabilities the balances of all ae'counts marked ( ( ). 
 
 Set ilowii as f,'ains those marked — . « 
 
 Set down as losses those that are unmarked. 
 
 and from the 
 
 of the iiioiIcIh. 
 
 ereilits. 
 
 r tiie accounts 
 
 ILXKIKMSKS IN S TATK.M KN'1"S. 
 
 L.XKRnSE IX. 
 
 C. C'. Andrews, Stock 
 
 
 
 
 Cash, 
 
 
 C7s:} 
 
 '-'2 
 
 Merchandise ( fnvenlory 
 
 SI-J30), ; 
 
 27;{4 
 
 •10 
 
 bills IJeceivable, 
 
 1 
 
 7it:i 
 
 .") ) 
 
 Hills I'avable, 
 
 
 (il'O 
 
 1.-) 
 
 Exiieiise, 
 
 
 •l,S.") 
 
 08 
 
 M. J. O'Neill, 
 
 
 •J7.S 
 
 12 
 
 It. J. Hart, 
 
 
 70 
 
 Si) 
 
 1). Nr. Foster, 
 
 
 
 
 Burk & .Tohuf on. 
 
 '206.07 
 
 275 
 
 43 
 
 75 
 
 I'esnlts : — Net (lain. 
 
 7'1S() 
 
 I'resent Worth. 
 
 209(5.07 
 
 
 
 
 1 
 
 kSOO 
 241.-) 
 
 4 so 
 712 
 
 10 
 
 00 ! 
 
 1 
 
 45 i 
 
 205 
 
 
 74 
 0.3 
 
 60 
 75 
 
 7986 
 
 — --— 
 
 : 1 
 
 KXKllCISK X. 
 
 M. n. Melntvre, Stock, 
 
 Merchandise (Inventory s"770) 
 
 Cash, 
 
 hills Receivable, 
 
 Hills Payable, 
 
 Kxiiense, 
 
 Interest and Discount, 
 
 Personal aecoinits ( Dr. balances). 
 
 Personal accounts (<-'r. balances). 
 
 Results :— Net Loss, 901 
 
 Present Insolvency, 461 
 
 SC.OO 
 
 
 '-•8()0 
 
 
 I4:i0 
 
 
 .''.2.S5 
 
 
 'im 
 
 
 r)5 
 
 
 2orio 
 
 
 21260 
 
 
 I 500 
 7:<r>c> 
 
 , 2220 
 
 I 5(10 
 
 .W .-),■) 
 
 98 
 
 4731 
 
 2T26O 
 
mk 
 
 mmmti 
 
 tmmm 
 
 r^-x ^■.- 
 
 50 
 
 PLXKRCISK Xl. 
 
 ;_ 
 
 S. W. White, Stock, 
 
 ^'■,^»h (l):iliin('e), 
 
 Bills llfCfivjiKlc (luilaiice), 
 
 15ills I'iiy.ililf (I'Jiliiiicc), 
 
 I'lxpeiist! (liivtiiitiiiy .^'oO), 
 
 I'lTsoiial .icooiiiits (l)r, balance), 
 
 I'ersKiml accouiitH (Cr. lialancc), 
 
 Horse and WajZL'oti account (S'J 40), 
 
 Kuiniture ami l'"ixl\iit's (Inv. $30), 
 
 Intn'fHt anil Discount, 
 
 Merchandise (Inventory SI14I.2.')), 647t> 
 
 Results: Net Loss, 19G.80! 14170 
 
 I'resent Worth, 4003.201 
 
 liKlH 
 30(i 
 
 3117 
 4(ii8 
 
 27'. 
 4r) 
 
 83 
 
 -— 
 
 1 48(M) 
 
 
 75 
 
 1 
 
 
 4.-, 
 
 I'.Mm 
 
 
 SO 
 
 
 
 50 
 
 
 1 
 
 
 178G 
 
 75 
 
 50 
 
 
 
 82 
 
 5r.l9 
 
 07 
 
 |I4170 
 
 82 ' 
 
 i:xi:r('ise xii. 
 
 N. I). Janes, Pro|)netor, 
 
 Casli (halancel, 
 
 jMorcliandise (Inventory ?235l).50), 
 
 Kxpense (Inventory ."jsiad), 
 
 Interest and Discount (Res. Inv. $20) 
 
 ( 'oniinission, 
 
 Real Kstate (Inventory $2,300) 
 
 Rills lleceivalile (biilance), 
 
 Rills I'ayahlt! (balance), 
 
 Personal accounts (Dr. balance). 
 
 Personal accounts (('r. balance I, 
 
 Results :— Net Oain, 2!»78..32 
 
 Present Worth, 255».()2 
 
 419 
 
 30 
 
 
 1 24(1 
 
 5U 
 
 
 22()41 
 
 8.". 
 
 23170 
 
 94C. 
 
 ><.'. ' 
 
 
 38 
 
 12 1 
 
 j no 
 
 240 
 
 17(i0 
 
 
 
 124 
 
 
 2()93 
 
 310 
 
 2.'. 
 
 1 26 1 
 
 27492 
 
 1 _ 
 
 87 
 
 27492 
 
 12 
 
 22 
 30 
 
 87 
 
 49. The Ledger Index. — To enalile a person to f.iid jiiiy iU'couiit roadily, an filiilialictical imh'x is 
 placed in tlie front i>( llic l.i'dgfi', or, wlicn the Li'dger is lHi\e;c, in a separate lioolv. 'I'lii' aceounts with ])ei"- 
 sons .slididd l)e indexed luider the initial lettei' of their sufiiaines. Josejih ('onnor's account shoidd ho indexed 
 in the division assiuned to tlio C's ; thus, Ccinior, Jo.irp/i. Other accounts, such as lirni names, JJills lieceiv- 
 able, lieal Ivstate, etc., nvc. imlexed under the first letter of the title. 
 
 In postin",', index each title as directed above before opening an accotnit w ith it, reineiiil)erini.f nlways to 
 write the title of the account exactly as it is given in the J(jurn;d : that is, nmer write -'J. Smith ' in the 
 Ledger, \\ hen it is ".John Smith,'' or ".loiin Snutli A- ("o."' in the Journal. 
 
 EXERCrSKS IX I,KlHiKlJ. 
 
 E.XKIICISK X I i I. 
 
 Journ/dize, post, and get a Trial iJalance for the 
 transactions of Exercise \M., page 40. 
 
 EXERCISI--, X V. 
 
 Journali/e, post, get a Tri.d Balance, and clo.se 
 the accounts for the transactions of l^xercise V., 
 page 40. 
 
 KXKHCISK X 1 W 
 Journali/e, post, and get a Trial Halance for the 
 transactions of Exercise VJI., page 40. 
 
 EXERCISK XVI. 
 Jouriializc, post, get a Trial I'alanco, and prepare 
 a statement for tlie transactions oi Exercise VIII., 
 page 40. 
 
 SET. IT. 
 
 l'si)i(/ a Journal ami Lrdyr, ivork out thefolJoiruig set of transact unis. 
 Get a Trial llalanrr, close the accoxitts, and pre j /a re a statement. 
 
 A grocer on Queen St., Toronto, at the beginning of the year I'JU — had on hand: — Cash, 816G0; 
 Goods, .SI 250; Business Premises, SL'OOO. 
 
 Jan, 2. Buys goods on account from T. Isaacs . 8450 
 
 " J{. Sells goods on account to R. Day 120 
 
 " 4. liuys goods on account from N\'. Knight. SUT 50 
 
 " 5. Sells goods on account to W. Dougiity.. 189 99 
 " 9. Pays 'V. Lsaacs on account, 
 
 By casli 445 
 
 " *iliscount 5 
 
 •" 10. R. Dav forw.irds cisii 85 
 
 " 12. Pays W. Knight cash 37 5<3 
 
 *' 13. Buys goods from W. Kelly on account . . 285 B9 
 " 14. Sells gdotis to W. Driver, 
 
 Fur cash 137 10 
 
 ( )ii credit 100 
 
 «' 15. Pays cash to W. Knigiifc 137 15 
 
 *' It). Forw.irds goods on acct. to R. Day 105 11 
 
 J.aii. 17. W. Driver forwards his cheijue. ....... $ .'iO 
 
 " 19. W. Doughty forwards a hank draft 240 
 
 " 20. R. Day pays casli personally 150 
 
 And receives a tdiscouut 8 
 
 " 21. Buys with cash coal for use in.stoi'e. ... 6 10 
 
 " 22. Pays for insurance cash 50 
 
 " 31. Month's current expenses paid in cash. . 29 19 
 
 " 31. " " salaries " '• . . 25 10 
 
 " 31. " cash jjurchases of Mdse 390 
 
 " 31. " cash .sales 450 56 
 
 I.wK.vroKiES Jan. 31. 
 
 Mdse. on hand valued at 14.48 87 
 
 Store premises 2000 
 
 Resi'lts. 
 
 10. " " " W. Douirhty. 137 95 . -.,„„ 
 
 IC o >> >t \y Driver 119 20 Present worth, $5089.03. I»(et gaui, S>li9.63 
 
 'Cre<lit Milse. for tliia (liscouMt. 
 
 tUt'liit Mdtie. fur this ilUeouiit. 
 
i^mmmmiSma 
 
 '•dmtmMHmtS 
 
 CHAPTER V. 
 
 Sr(i(;KSTI()NS von JOlKNALIZINd. 
 
 1. You may memorize the following .siigg<'.sii(»iis foi' siiii|il(' .Imiiiifili/itii,' : — 
 
 Tf y<ni luiy nioivliiiiidisis dcliit Merchandise. 
 
 If you rciL'ivi! iiioiiL-y, debit Cash. 
 
 If you piiy for froiglit or cxjuesH. dt'iiit Merchandise. 
 
 If you ]i,iy for cxiic'iise.s, deliit Expense. 
 If you trust, u iicrsdii on uffount, iji'liit his name. 
 If _\ou ])uy ii person on iiecount, del)it his name. 
 If yi)ii get, hack your own note, (h'liit Bills Payable. 
 If you receive a time dnift, dtl)it Bills Receivable. 
 If you ri'eeive anotlier person's note, delm, Bills 
 Receivable. 
 
 If you sell inereliiuidise, credii Merchandise. 
 
 If you pfiy out money, credit Gash. 
 If you issue a clie(|ue, credit. Bank. 
 if you |)!iy ii sight ilr.'ift, credit Bank or Cash. 
 If a ]iersiin trusts you on dcii uni. i re. lit his name. 
 If a |ierson pays yciu on accoinit, credit his name, 
 if yipu give your note, credit Bills Payable. 
 if you accept a draft, credit Bills Payable, 
 if you give ti[) anntiur person's note, credit 
 Receivable. 
 
 Bills 
 
 I. 1{i:(iAl!l»IN(J P.AXK. 
 
 2. Many book-keepers call every cheipK! issueij, Cash, ami .•icconlingly, they make no entry fnr tlie 
 parting with money as a deposit. From tiieir standjioint, the j.utting of nmney in the hank is tiie sanu; as 
 putting moiu-y in a safi', and tlu^ issuing of a clieijuo is the nierc! act of p.iyiiig out money with other har-'Is 
 than their own. lUit the majority of Ijook-k'eepers consider the depositing of money to Ik- a distinct l)usiiies.s 
 transaction, and th«^ issuing of a clie.pu* to he the parting with somiithing oilier tlian money. 
 
 3. Bank An Unwritten Promise. When a sum of money has lieen deposited in a hank, tiie hank 
 owes tln! dejiositor a d(d)t eipial (o tiie deposit, aiul, unless a I >e[)osit Receipt has been issued, tiiei'e is no 
 written jiromise lianded to tlu! depositor as e\ ideiiee of his claim ; consequently, h(> iiolds {t\\]y (f c/dini ag;iinst 
 the l>ank for the amount of his deposit. I'ut the idiecjues he issues decrease the ind.diti'dness- every che(|ue is 
 the return of p.artof the el.iim. ^^'t! li.ive slated that a claim against a business lious(^ is called by the name of 
 the business house, coiisecpiently the claim ol)tained by deposits and surrendered liy cheiiues is called " /Idiik." 
 
 4. ir/e/t //'III (h'ponit inOHCi/ in. ii, Ixoik ; debit Bank, credit Cash- W/o'ii i/oii issue a cltrtjiin Id paij i/oiir 
 
 note; deiiit Bills Payable, credit Bank. ]yhi')i yoib issun a rhiiiiii: to juiij j'nf (jiioils ; didijt Merchandise, 
 
 credit Bank- Winn yoio itmiic. a clii'iiii', to jun/ j'nr i-ent ; debit Expense, credit Bank- Whfio ijim issue a 
 cheque to \m>i (t sii/lit draft ; debit "The Drawer," credit Bank, HVc/j you issue a ch"jue to pay I). Siuis^ 
 on account ; debit D. Sims, credit Bank. Whru ym y/ ,/ r/ir'/nr .• deliit Cash. 
 
 5. OUserve, that although your cheques issued are poi'tioiis of yayir c/alni (u/ainst t/w hauk parted with,, 
 and iire therefore called " IJank." yet the cluupies y<iu I'ct'eive are not additional claitHS aijainst the bank, and 
 are fh<>refore nf)t called " IJ.ink." The che(|ue.s you get are orders on .all or any of the banks of your town. 
 If you guarantee their genuineness by endorsing, your banker will receive them from you as Cash, as readily 
 as he would receive current money. Since he will receive them as Cash, you may call them '^('ush" when 
 you get them. 
 
 Itemember, tlien, My (•lif(jue = Bank, and in review, Mj- n()te= Bills Payable. 
 
 His clie(jue = ('asli. His note= Hills lioceivaWe. 
 
 EXERCI8E I. 
 
 Journalize fehe following transactions : 
 
 1. Deposited in the Meroliaiits Bank, .S'-'O". 
 
 2. Paid for a set of iiooks with chetiue. !?I0. 
 
 3. J. I). Kaine paid his note with his clif<|iie, $25. 
 
 4. Paid M. K. Barker a month's rent witli (■■lietiue, .S.'iO, 
 
 5. T'aid iiii) note with vti/ cheque, $75. 
 
 6. Ileceived from K. G. Evans & Co., a *I)aiik draft, in full 
 
 of account, .¥400. 
 
 7. Deposited the hank draft at face value. 
 
 8. Received from Jamea Petrie, cash, in full of account, $4(1. 
 
 9. Paid C D. Miller, on account, cash, $'20. 
 
 10. Deposited in the bank, cash, .?f)0. 
 
 11. deceived from H. King, an 'express money order for $20, 
 
 in payment of his note due to-day. 
 
 » See page 21. 
 
 12. Hereived fioni W. D.Rogers, a 'jiost ollioe money order. 
 
 in full pavment of his note, $20, and interest thereon, 
 $1.50. 
 
 13. Deposited the two money orders at face value. 
 
 14. Drew *a .sight draft on l». I,. Allan foi- g.SO, in my own 
 
 favor, deposited the proceeds, less 2.") for collection, in 
 the hank. 
 
 15. Bought, for cheque, a stock of fruit and vegetables, .$30. 
 IC). Paid, per che(|ue, for an invoice of goods delivered 
 
 CO. I)., $18. .50. 
 17. Paid (J.T.R. freight bill with +certilled cheque, $17.30. 
 IS. Paid, per cheque, clerk's salary, $20. 
 t ,See pa^es 19, 68. 
 
ns 
 
 h 
 
 i 
 
 II. ltK(;AHI>IN(i SO.MK .MDSK. KXTIMKS. 
 
 6. Freight. — 1 5y reason of the lalmi' ifi|iiiri'il to l)i-iiiL( it iiiio a I'liiislied .state;, almost •:vvvy articI(M.s 
 iiioic \.iliial)le tliaii tlio raw material of wiiieli il is compo.sed. A pair of shoes is worth much iiutre tiiaii tlu! 
 pieces of hide of wliich they are luaiie. 
 
 We call th(i shoes ^Merchandise, and in ddinj^ so it will be seen that the l(d)or of certain wt)rl<men is 
 beini,' ealli'<l hv this name!. \ow when these woikmi'n lea\(' tlie shoes in what they call a tinished slate, they 
 are at some factory far distani finin the jiiaeeof final sah-. ()ther lai)orei's take them in charge and ti'anspoi-t 
 them to the re(|uire(l plaei!. ^^'e call tin; work of thcM' last set of workmen " freight. ' If in I '.ook keeping 
 we call tlie laljor <if the lir-st set of w<irkmen .Merchandi-e, is it not- (jnile consistent to call the frei<;ht 
 Meicliandise alsol FreijLjjht is u-uall}' such a consideralile part of the cost of goods tliat hook-keepei's call it 
 M( rcliaiidi-c. and del)it that ai'count for all j)ayments made for ti'ansportation. 
 
 7. Cash Discounts. — Somt; years a^o the manufacturers and wholesale dealers made a ,i,'eneral practice 
 of a How in;; i luce and l((ur months' credit on all sales, hut gave lilu'i'al discounts to pui'chasers preferring to pay 
 cash, ^lanut'acturcrs of some lims of gnod.s raised a protest against such lung terms of credit, and reduced the 
 lime (o .">0(|,iys; otliei's went fnrther,and nowgivconly lOdays; and a few in some instances demand immedi- 
 ate j>avnienl. Wholesale houses follow the piactices of the mainifact urers wlwtse goods they .sell. For instance, 
 sugais are sold at 30 days' credit ; cheese at lOdays'; spices, 3 months' ; teas, 1 months'. (Joodsare classified 
 as: I :\Io>.' Co.ids; 3 ]\los.' (!oo<]s; 'M Days' Goods; ("ash, Net Cash or 1(1 Days' (ioods; "Spot Cash" Goods. 
 
 .V person purchasiiiL; 1 mmiihs' goods is in reality od'ered them at (Mt'ier of two prices. I*'or instance, 
 4 months' g(io(ls sul))ect to ') discount that may cost !?|0(), can he hoiis^'ht for !?!)•"). The sellei' docs not 
 know which price the lniyer may finally choose, and since Ik; has to set some price on his goods, selects the 
 higher, ^^'hen tla; pmcliaser gets the goods he may not, decide for a few days which he will ])ay, and to 
 keep his books like the seller's he also temporarily select.s the highiM'. 
 
 Ill till' first entry the purcha.ser would make, he would overilebit Mdse account, but a credit cnirv for 
 the excess will reduce the ciehit as cilccl i \ ely as tro-sino- nut tiuures. lie would also o\er-ci'edit, the seller's 
 account, and a dt^bit eipial to the excess will correct the other part of the entry. 
 
 Example. When a bill of ,-100 Morth of .[ months" goods is received, 
 the laiyer writes: i the sellei' writes: 
 
 Mdse., luo Buyer's name, loo 
 
 Seller's name, loO j Mdse., lou 
 
 AVhen the buyer decides to jjay cash and take the lowei' prici , 
 
 he iiiinht \\ rite : 
 
 Mils. , 
 A\\'\ upon -ending cash : 
 
 >rllrrx inlllir, 
 
 ( '<ish. 
 
 and if the seller knew he miyht write: 
 
 J/./. 
 
 liiiyurs iniiii'', 
 
 !).") 
 
 9.") 
 
 Cush, 
 
 j;>, 
 
 i/ir s luime, 
 
 liiii lioiii of them put the t wo ent ries in one, thus : 
 
 Seller's name, l'>o 
 
 Mdse,, T) 
 
 Cash, 9.^) 
 
 and thus 
 
 Cash, 
 Mdse., 
 
 Buyer's name. 
 
 9.-) 
 
 9.-) 
 
 95 
 
 100 
 
 8. -Many book keepers call this ca-h disctanit " Interest and Discount. ' but since the rates used amount 
 to alioul 1 "1 to ■_'() pel' c(-nt. ]ier annum, it will be seen that it is a bonus or brilie to the purchaser to pay cash, 
 rather tli;in a reirular allowance for the ii.sf of' vionri/. If a sjiecial acc(nint is ke[)t, it should be called "Dis- 
 counts on I'urcliascs ,wid Sales." In pre[iaring a Statement, its debits are to be added with the cost of ^^dse., 
 and its credits with the Sales and Inventory. Such an account will leave Md.se. taccount in a more satisfac- 
 tory condition, because, irif/i n<i (idjiistiiHj I'litries, the debit side w ill show the actual cost, and the credit the 
 actual sales : conscciueiitlv, the real " turn over" of the l)Usiness will be shown. 
 
69 
 
 
 III.— REdARDINO INTKKKST ANI> DIHCOCNT. 
 
 9. There is ono rule iu IJiok-koepiuj^ that is most rii^iflly followod, niimrly, a nolc or aii afcoptanco 
 must (ilways hf (Ifl)itfMl nr crcdiied tor an aiinnmt (>i|iial in its faco. Uy n!f»*rnrii,' to pagt; 'J tlit« pupil will sec 
 that tlin t'ac(! iiif'aiis llii; ainouiil in lijiurcs al tin- lup. If a nuic is wuiili ninif than that shown by those 
 fi^^ures, lher« is somo interest oariuHi that is not inclmlod in thn face. Similarly, if a note or an accfpiance is 
 worth less than tla; aiiio.mi shown l»y tlitiso fij,'uivs. thi'rf is some intorest includnl in tho faco that is not yet 
 earned, it' sii<-li notes Imtomu' invohed in Journal entries, there will h;i\e to In- entries for Iiiti-rest and 
 Discount as well as for Rills Payahlo or Bills lleceivahle. 
 
 10. There are some rul>'s that make the journaliziMu' <»f ^uf\t rnti'irs compar.itively easy. Wo shall state 
 their ajipliral ion to Hills Rfceivahle. 
 
 If' Jiillii Ri'CpAvahh'- tind Iiitrn^sl iiwl Il'iscnnnt ttrf Imth debited nr lioth cri'tliti'ii iii. lh<' sduii' ftitry, On'ij <ii'i' 
 treated nimi/nr/i/. 
 
 If Jnlereat and Dixronnt is defnted ii'hen lWln Ri'ri'iralile is rredid'd, nr if Tiili'r<'xt iiml Disroimt is credited 
 icJii'it /lids J'eeelruli/e is di lilted, t/iei/ are treated cniiirardi/. 
 
 At the date ot .lounializing — 
 
 1. If the cash value of a note is more than the face, treat Interest and Discount similarly to 'Bills 
 Receivable. 
 
 2. If the cash value of a note is less than the face, treat Interest and Discount contrarily to "Bills 
 Receivable. 
 
 3. If the cash value of a note equals the face, make no entry for Interest and Discount. 
 
 4. iOn every occasion debit or credit Bills Receivable for an amount equal to the face. 
 
 Example 1. .lolin .lones pays with eheque his note, the face of which is >"i.M)0, jiiid accrued interest, 
 !?0 We ask ourselves, is the cash we receive more than tlu; face? Seeing that it is nioi'c, we apply rules 1 
 and 1, and write - 
 
 Cash, 20ti 
 
 Bills Receivable. tti.fu.c gj^^ i'OO 
 
 Interest and Discount, 6 
 
 Example 2. John Smith pre|)aid his note of i^2r)0. The note liears no interest, and I allow him a 
 discount of .~r.">. Applying rules 2 and 4 we debit Cash, 245, dcl)it Interest and Discount, 5, and credit J!ill> 
 Rec«.'ivable, 2.j(). 
 
 Example 3. I <liscountefl at th(j bank my note for S400. The liank deducted 87 for discount, and 
 placed the balance to tho credit of my account. Appl^'ing rules 2 and I, we debit Rank, ."^OS, debit Interest 
 and Discount, 7, and credit Rills Payable, 400, 
 
 TV.— REGARDINCJ ItENEWED NOTES. 
 
 11. Frequently when a note matures, the maker is not pi'(>pared to pay it in full. Tb^ 7uay desire an 
 extension of time for llie whole note or for part. If tliei'e is no endorser, it m;iy be ijuite .satisfactory to 
 allow the old jjiist due note to stand until paid. Rut to cancel the old note and ina!<(! out a new one is the 
 proper course. 
 
 12. Renewals for the Whole Amount. — The peculiar feature of the emries for renewal is, that 
 Rills R(H'eivabl(f will be debited and credited in the sam(> entry ; debit<'d for the face of the new note and 
 credited for the face of the old. So also Rills Payable, but it will be deljilcd f<ir the face of the old and 
 credited for the face of the new. 
 
 The face of the new note is generally larger than that of tin; old. i'he debits and credits are balanced 
 l)y Interest and Discount by making an entiy in which Interest and Discount is treated simlldrly with the 
 smader note. 
 
 *Siib»litut(' liilln I'livalple for liills Ri«'ival)le throufjlioiit tlio ruUs, .iml llicy are .still Uuc, « itiiout fX('(i>liiiii. 
 
 t.\ teacher liiiiliiifr a puiiil tiavinj; figures after Bills Uuceivalilo or liiUs I'uyal>lc otlier llian tho.se of the face, hhoiiM impress this rule upon him so 
 that he will never forvcet it. 
 
MM 
 
 ^i 
 
 m 
 
 13. Renewals in Part- If liie c!i>li luid ihc new nolo received ail) iiKin* tlmn (lie fiue (if tlio old 
 note, (teat them niini/drfi/ and {lut as coutrarinn tlio face of tho old iiule, and Hiillitioiit luleiest and I)iscount 
 
 to lialance. 
 
 Journalize the following transactions :— 
 
 KXMIUJISK II, -Plltf MASKS AND CASH DISCOUNTS, 
 
 April II Itci'civcd ficKii lli'nry & Co., Alnnlrcal, ."lO ])iicc« 
 Bcr^c, 1,(17!» yiln. 6/"()Oo., .Sl,0(»7, H). 
 
 5 li(!<,'(Mvcil from ( '(•'•per & Sniis, Torfinto, on ,'{(l iIivh, 
 'J lalcH Nd. I Wliito I'liiiiiic'l, illti yds. (./ ^(i.^, 
 
 !<:i(ir). 10. 
 
 7 Iteceivcil from Sciiiif k ''o., .Moiitrcil, on (iO days, 
 I CISC I!1ini(;Ii(m1 ,sli(.i.tiiij,r.s, "J.lfSH yds. (w, r.'ic, 
 §'J7t.7.".. 
 
 H licccivcd from llniloii iV Co., Montreiil, oiCi montlm, 
 'J.') IdfutM of I'riiil, 7Si") yds. T" H.\i'., .•?•)'). 4'-'. 
 
 !l IJfccivfd fidiii Henry Wiilliifc, Toronto, <in 3 
 niiiiitlis, ■_'(! |iit'if.s of ClieviotB, 500 yds. (n 'AK\, 
 $4 .".(». 
 
 lO Heccivcd from I'erkins & Son, Montniil, on .'{ 
 nioiitlm, !2() [licuts of ilomctjpun, 480yds. Oi Mic, 
 $.S»4. 
 
 Aprd 8 Instruutud Heniy & Co., on April r»th, to <lrftW on 
 me, lit sj)i;lit, for amonnt of Invoice of .'trd in.st., 
 it^HH '»' per ernt. for cash. To-dny tlu' draft was 
 pr(!Hentt'il .md \\n'ui witli ('lie(pii'. 
 
 10 Ri'mitted Coo|K'r A .Son, 'loionto, a li.ilik draft for 
 tlie amount of tlicir Invoicf of 'itli inst., less '2 
 per cent, for cash. (I'urchascd hank dralt with 
 elii!(|ue. * ICxchiui^'c, .">0c. extra). 
 
 10 Sonne fi Co. drew on vu\ at si^^lit, tw pel' inHtruo- 
 tions, for amount of Invoice oi 7th inst , Iuhm 3 
 per cent, for ciwh. Accepted the diaft. 
 
 14 Uiniillc'd llortoii it ( 'o, my eertilled elHMpio f(pr 
 hiMiii f Slh insi., h'>> ;{ percent, for cash. 
 
 14 Accepted, payable at my liankers, si',dit dr.iftH of 
 II. Wallace and I'erkins & Son, fui- the amonnt 
 of their InN'oi'c, ic^s ."> [lercenl. for cash. 
 
 17 My hanker has paid ujy acceptances uf lOlh and I4th. 
 
 •Debit Kxpi'iise (nr K\chati;,'(' in n Hip:uaic irilry. 
 EXKRCISH III.— INTKItKsT ANI» DISCOlNT AM) liKNKWALS. 
 
 1 Lent M. G. Sills on his note at six month.-?, liearim.' in- 
 
 terest ;it .S percent. .S7-")(». (See Itilli' .'(). 
 
 2 I'lireli.ised .lolin Harpers note of ^-'.i'tU at ."v rate of dis- 
 
 count of 10 per cent. ; the note will not mature for 7."{ 
 d.-iy.s. 
 
 3 discounted (purehiised) Wm. Ijawrcaicc's note of !?14ti. 
 
 viiieii liears interest for one year at 7 per cent. I 
 )iurchased it 'Jlt2 dayH iieforc maturity at a discount of 
 10 pt^r cent. 
 
 4 I)iscounted (sold) at the Standaid liaiik at 8 per cent. 
 
 my note of .*«1,(I0(» at tour montljs. 
 
 5 James Parker p;ud his aeceptiince of .■?,'l()0 two months 
 
 liefore it was due, and 1 allowed him a discount. !?•">. 
 G I'aid with eheipic my note of .*!40() at three months, hear- 
 ing interest at 8 per cent, 
 
 7 1'". IClliott paid with che(|ue his note of .S2(M). due to-day, 
 
 i\ ith accrued interest. .^lO. 
 S I'aiil a year's interest on the mortgage on my stiu'c ami 
 
 lot with cash, $1(10. 
 9 lieiiewed for six months my note, favor of C. I). Hull, 
 
 due to-.lay. for .?'2(I0. Pace of new note, .'-!'J()4. 
 
 10 Ueiiewed my note, iiivuv of il. K. Hamilton, for Sl.W. 
 
 (iave a new note at three months for .SUt-, and cash 
 for halance, $i")0, 
 
 11 lieiiewed .M. l;. Ilollis' note of .SinO for one month. Re- 
 
 ceived .SI cash for extension of time. 
 1)1 Itenewed Hooper & ('o.'s note of 5^100 for three months. 
 eliarj,'ing them if'2 interest for the extension. J"'ace of 
 new note, .?102. 
 
 v.- I{i:(!Al{l»IX(! TI.MH DUMP'S. 
 
 14. in fli<! previou.s cxrrci.se.s del)ts liavcs liceii .settled hy paying siylit draft.s or remitting eliO(|ue.s or 
 liunlc drafts. Aw, liowcver, many .settlements are eftectod by mean.s of time drafts, it is e.ssential that the 
 pupil shoidd lia\ a elcar understanding of the nature and use of these important papers. For a correct idea 
 of appearance, forms, etc., seepages 14, 15, 16, 17. 
 
 15. Siijiposo IFortiin it- di. an? Iv A. Stuart's creditors for $240 and rccjuest its .epttlement. As he has 
 
 noitlier cash in the (dlice nor at the Bank t( 
 pay the amount, he inform.s Messrs. 1 lorton 
 (k. Co. that it will helter suit his convenience 
 to have an extension of time, for which he is 
 willing to lose the discount allowed for cash 
 payments, and to give a written undertaking 
 to |)ay tin; sum at tho expiration of, say, 3 
 months. To this they consent in accordance 
 with terms arranged between them when 
 purchases of goods were made, and they now 
 
 $240.00. 
 
 Toronto, Sept. I, 1900. 
 
 Three months after date 
 
 PAY TO THE order OF OURSELVES 
 
 TWO HUNDRED AND FORTY DOLLARS 
 
 FOR VALUE RECEIVED, AND CHARGE TO THE ACCOUNT OF 
 
 TO E. A Stuart, 
 
 BERLIN, ONT. 
 
 HORTON & CO. 
 
 make out and send through their b.mkers the order shown on the left, for E. A Stuart to sign. 
 
61 
 
 'I'lio form is II (li.it't drawn hy llnitdii \' Co. on K. A, Ktuiii'l at 3 luonllis ufter duti', of wiiioh llioy ura 
 tliM I>i'Hvvcrs tiiid Puvt't'H >iiid lio is tint hniwcc. 
 
 Tt HOW remains for K. A. Slimrl lo 
 (U'kiiow li'di^(^ or iicccjit. tlio ro.s|)ciiisil)ilii y 
 of coiiiiil) iiii,' with till- order, wliieh lie 
 (Inrs liy writing iicroHS tlio drufl his Hij;n(i- 
 lure and tiio Itiink at which ho wishes il 
 to lie jii'esented for jiaymeiil 'i'ho i'orm 
 sliow ti to tii(> rit,dit, is a representalioii of 
 tli«( aecejiled drai't. 
 
 $24000. 
 
 5 (^ 
 
 PAY TO THE ORDER OF S_ 2 v. 
 
 Toronto, Sept. i, 1900. 
 
 Three months after tiATi 
 
 OURSELVES 
 
 TWO HUNDRED ^. :^ ^ AND FORTY DOLLARS 
 
 for value received, a >*J 3 k; ND CHARGE TO THE ACCOUNT OF 
 
 Si I NORTON & CO. 
 
 TO E. A. Stuart, J, ^ 
 
 BERLIN, ^ ^, ONT. 
 
 1 
 
 K. A. Stuart having now aoeepted the draft, it is styled an iti'i-tplttin:^ und lie is known as ilie Ae(<'|iior. 
 llortoii it Co. would ha\(! to ondorsc* the draft (w>o No. S, jm^e '1\ ) Im render it " negoliaiile," or in other 
 Wdrds to allow hankers and ntliers to deal with il. 
 
 16. I'or IJook-keejiinL; juiriioscs an aceeptanco is a Jhll licocMvahIc, to tin* jmm'soii who receives it, 
 generally tht! creditor, und a J5ill J*a,y;dile to the person who pays it, generally a ilchtor. In llorl<in iV C'o's. 
 liuiiks ihe ilraft would he entered as iJills lieeeivahlo and in K. \. Stuart's as Jhlls Payalile. 
 
 Horton A' Co. may deal w ith it in any of the following ways : 
 
 POHSIIII.K ('IKCITM8TANUK.S. 
 
 ( 1 ). Whin lh< 1/ ill aw it. 
 
 ( .'). I'lii/ it uwiiij III Kiimt uiif rUe — no7ne crcUilor, 
 
 (^:j. Iiisi-iiviit it, that is, ohtain the vioiiri/ for it from thtir 
 lidiihrs, lenn Uinrouiit/or the time it has to run. 
 
 (.')). Kiij) it till it iiiuluriii anil hare their hanker culled it. 
 
 (.'i). Cinierl it upon rccririntj another arreptanre in renewiil uf 
 till' iihl (ine, in irliifh I'li.ie E. A. Stuart fslioukl allow tin ii. 
 iiiti rtfitjor the 1.1 tra time. 
 
 (I'j) Hare it nfnrni il /mm thf hank dishonored, that in, not paid 
 when due, ami jirotest clinnjen, t^ni/ Si, iueurred. 
 
 JleltTOS i^ Cu's .lolliNAh EnTHY. 
 
 Bills Receivable 
 
 E. A. Stuart 
 
 "A Creditor " 
 
 Bills Receivable 
 
 Bank or Cash 
 Interest and Discount 
 Bills Receivable 
 
 Bank 
 
 Bills Receivable 
 
 Fou Same ('Iucumstances. 
 
 (')■ 
 
 (:.') and (■1). Xo entrij. 
 
 fiJJ. 
 
 Bills Receivable 
 
 Bills Receivable 
 Interest and Discount 
 
 E. A. Stuart 
 Bank 
 
 ]■:. A. SrcAin's I'Intkiks. 
 
 Horton & Co. 
 
 Bills Payable 
 
 Bills Payable 
 
 Bank or Cash 
 
 Bills Payable 
 Interest and Discount 
 Bills Payable 
 
 Bills Payable 
 Expense 
 
 Horton & Co. 
 
 240 
 
 
 1 
 
 1 
 
 1 1 
 ' 240 
 
 240 
 
 
 240 
 
 1 2.3.'-. 
 
 
 240 
 
 240 
 
 
 240 
 
 24.') 
 
 
 240 
 
 241 
 
 
 241 
 
 1 
 240 
 
 
 240 
 
 240 
 
 
 240 
 
 240 
 
 
 i 245 
 
 240 
 
 1 
 
 
 1 
 
 i 241 
 
 17. Settlements ar» .-omotimes efiectod by notes in the .same way. Entries would he mad 
 previous case under the heads of Bills Receivable and iSills Payable. ]f the debtor takes the ini 
 settling an account lie will use cash or a note. Bat if the cri.'ditor takes the initiative in efT* 
 
 as in the 
 tiative in 
 cting the 
 
■ppDianH.iiiuiJiiJMii!it I 
 
 
 settlomtiit lie will usf> si<,'lii diafis m liiuf diaris. Tlio iiu[ii.> will c.-isiiy .see tluit drat'ts will Ije iiioro 
 onMiiiiiiiily ill use .•umdiii^' iiH'rcli.iiiis than nutes. 
 
 . AVMHXTS. 
 
 I>V N'mID.S ASM) ACCKPTAXCKS. 
 
 18. \N'iii.'U ii nolo is passed, or a dfJitt afeepicd, tlie pci'soii, eiiinpaiiv, or tliiiiif on aceonnt >>\' wliich ilie 
 ol)li,!.'ai ioii is given, ouglit to be deliited and tlie IJills I'ayalile aeeouiiL credited. 
 Jan. ."! .Voeepted J. M. SjKuildinu's draft mi inc at .'>0 days ' .Ian. 20 .Vcrciitcd \V. V. Parker .^ Cos. draft on me in tluir 
 
 siirlit in scttlcnirnt of .'S'_'0(.(;(l. 
 7 Ai'i't'iilid AV. (i. I'lvaiis k Co's. draft on iiu- at '.iO days 
 
 si'.'lit for .S.'iT'i. M'l 111 full of .•iirouiit. 
 17 Mailiil to \. <!. Xortoii my not'', at (50 days in full of 
 
 account, .•S'.'lW.ni. 
 1!) Accepted liiintcr iV Sons' sis.dit ilraft on me, favor of 
 
 Standard I'tanU, licuig for full amount of accoiiiil, 
 
 1. Wflln (lilt aU till', (ihovi: iiati's and dnil'ts. 
 
 ow n lavor at !)'.) days si;,'ht. 
 
 21 Passed to L. V,. (Jreen my note at (JU days in full of 
 account. 
 
 2,") Accei)ted ( '. ('. ( 'oojier's draft at 1^0 ilays after dalu 
 for .SS. 7o. 
 
 'J7 Remitted to W, K i.'cynolds my note at oU days for 
 SIJ44.o4 ill .scttki.icnt of account. 
 
 J. J'inriuilize all thu uboi'i'. traiisa'-flonK. 
 
 COlJJ'X^rTONS. 
 
 19. Almost all tlio ciistoinei's of a^^llo]esale lious(> live in distant cities and tow ns to w liicli tlie goods 
 liaA'n Ikmti shipped and wliero tiie jiayineiit lia.s to lie colleeteil. Tins goods are usually .sliipped sevei-al days 
 l)et'oi'e payment is sought or ex[>ected. "Net (;ash ' goods arc to l)e paid in 10 days. "Cash goods" in 'M) 
 days. l''or the latter a liheral (iiscmmt is often allowed to the pnrclia.ser to induct; him lo remit .sooner. If 
 jiaymeiii is not made \(>liiiii,irily in a nionlh, tiio seller draws upon tlu^ luiyer and no discount is allowed. 
 
 20. \\ lion goods are sold "on t'"'.e,'' that is, (,n longest- credit than one month, It is customary for the 
 seller to draw on the huyi-r as soon as he believes the goods liave been received a-id examined. The draft 
 is almost invariably 7nade out either in favor of the drawer him.self or iho b;ink with which he keeps his 
 ai'coiiiii. !l will be fuiw aided by the bank to their agent in the town where the liuyer lives. The seller 
 <loes iiid remit it by mail himself. 
 
 21. If tlio draw cr (/t.Mo///(/.v it immediately with the bank, he will h(>ar iiothinir further abnui ii unless 
 it is dislioiiiind ; if he sends it forw.ard for timjitinn-'' aii<l riluni he will get it liack and Iiave it at his own 
 disposal in a few day-: if he sends it fnrward i^w ncri jitu m-i: (iiid. Cdll' ctioit he will hear in a few days as to 
 wlicllii-r ii was aeci'picd or accepiaiici- rofii>cd, and if lot dishonored it will remain with the aLTcnt in the 
 <lebioi's to\,ii till ii iiiaiiin's, and it'p.iid t li(> draw or will bi,> credited by the bank a few days later lor the face 
 less a ^i.i.ill .slim f<ir collcclion expenses. 
 
 22. If a draft is forwarded for acceptance and returned, make only a lead jiencil memo in the debtor's 
 account, till the answer i.^ ■ecei\ed. If discounted or tbrwar<led for colled ion make an entry, assumiiiLj that 
 the draft v ill lie accepted. Should ihi> drawer dishonor the draft reverse the entry and debit him in addition 
 for .'ill eN[ielises incurred. 
 
 Journalize the following: 
 
 I'Y'l). I i;< . . ivid frnm .1 . II. Tolun ;i i'aiik draft for *.'?IV.ti2. ."."•, 
 the amount of his /locoiuit less 5 per cent, casli 
 ili.sooiiiit.t 
 
 3 Ucci'ivi'd from William .lones a certilicd cbe<|ue for 
 
 .»<'Jl>4."J.S, in full of' account, less t» ])er cent, discount. 
 
 4 Itecciveil fiiMii I!. Met'taoa dominion I', .\ press order 
 
 ill full of ac<'ount, .•s'_'4. 
 "i !)rcwon 1!. A. Weli'li at !H) d.ivs for aiiiount of 
 
 acc<iunt, .S.'IOO. I M-icounted the draft at 7 per cent. 
 * ?.'!!l'J.".') imi.'i )iiT cent, of the luiiiviiiit nf liis iii-CMiiiit. 
 \ ( nil llic (liscduiit eillier .\lilse. or Interest iiiid liiscimut. 
 
 Fell. I'p !»ie\voii .1. I). Denny at ."tO days for ."S.'iOti and left 
 
 draft for collection. 
 7 Kcccived from II. 'i. ( 'oolcy liis note at !»> d,i\s for 
 
 .•^.'KIN in full cif iicceant. Disciuiiited the s.mie 
 
 iiimieiliatcly at 7 per cent. 
 I'J M\ di.illoll (I. K. Splec of one niolitll a'_'o f o r .* 1 .'?,'{, 
 
 forw.iidiMl for colli'ctioil, Inis lieen p.iid ami tli" 
 
 proceeds less .'{.'ic!. ]daced t" my credit li> my liank 
 |.") hrew on ('roue IJros. at s^-lit fur .-ale of .Ian y 'ii'tli, 
 
 S'itl, il'"eli. Istti) draft was paiil and iirocteds le.ss 
 
 |."ie. placed to my creilit. 
 
 VI.-1{K(!A1U)TN(! T/)SS AND TiATN. 
 23. ^Ve laied on pae;e .'57 Oiat the proprietor returns part of ///.v <'/,<;//i callcil "Sb)ek" wle-n li<; with- 
 draws monev or othei' vaUuvs from tlie busiiu'.ss. We carry the same idea further when we state that he 
 ret urns part of his "Stock " when he loses any of (lie values belonging to the busiiu'ss, but temporarily the slock 
 returned in this manner is named " i.oss and <!ain." .Vt the end of bus'iiess periods the accunuilations of 
 
i will 1)e. more 
 
 lit (if wluL'h I lie 
 
 lit (111 UK,' ill tlicir 
 
 (JU iliiys in full (if 
 
 {0 (lays ivftiT (hilo 
 
 )tc at 30 iiay.< f'lr 
 
 '•ti(t)lS, 
 
 vvliich tli<! goiids 
 )(>(l stivcral (liiys 
 sli giHjds " ill ■'{<) 
 init sooner. If 
 . is jiUowim]. 
 istoinary for Iho 
 ip(l. Tht! 'Iraft 
 ell lie kcjeps his 
 vcs. The seller 
 
 ■ ahdiil il unless 
 se it at liis (iwn 
 I few (lavs as U) 
 the au'eiit in the 
 iter i"or the face 
 
 1 in the delitur's 
 
 ,', assuininLj tliat 
 
 him in addition 
 
 for S,")0(> anil Kfl 
 
 Kite at !tn ila\s fur 
 •limited tin' same 
 
 until au'" f"i' ^l"'.'i. 
 iftii jiaul iiiiil til" 
 ■ndit iiy my liank 
 9Ai\v (if .laiiy 'ii'th, 
 anil proi'tt'ils lis« 
 
 when he witii- 
 e stato that hn 
 (oi'iirily the stock 
 iiocumulatiiins of 
 
 63 
 
 .such returned stuck, toijether with the ordinar\ (■xpens(\s of tlio liusiness, aro set a,i;ainst the prollts df the 
 liusiness ami t he halance cai'i'ied to tlie regular Muck account, tliere to diminish or iuorea.so the jjmprietor's 
 claim acciirdiiig as the lialaiice is a net luss or a net ,i;ain. 
 
 Example 1. 
 
 I he )iri.i,iiet(ir lust a !?10 hill frum ln\ iioekot ; we dehit LoSS and Gain and credit Cash, meaniim- that 
 the lMi-,iaM,s -4vts part of the proprieLm'.-, ".Stock " called " Lons and tiaiii ' and gi\e^ --Ca-^li. " 
 
 Example 2. 
 
 .1. P. :\la>(.n's iKit ■ is worthless; we deliit "Loss and Gain," and credit Bllls Receivable. 
 Example 3. 
 
 !'. I). Kemp has failed and can pay oidy aOc. on the ((ullar. Wlieii the eash is rei'eived -"'(ir the chum, 
 
 we dehit Loss and Gain and Cash andcredit H. D. Kemp. 
 
 EXERCISE V. 
 Journalize the following transactions: 
 
 1 A .'r^ii liill roL'tivcil fidiii a, straiiu'iT is cduiiti-rfcit. 
 
 2 Fire ilestrnycil part iif the stuck to the e.xteiit ef Jl-'Ol), 
 
 no iiisuraiu.e. 
 
 3 A s)iriiig freshet hai-'ked tip w ator into the cellar and gooil.s 
 
 tlieniii were damaged to the extent of $',iW. 
 
 4 Lost a S'i liill from my jioeket-hrmk. 
 6 H. I). Hiiiith gave nie liis elieiitio for .$10 for a coat lief ore 
 
 leaving town ; the eheiiue turns out wortlihsa and his 
 wlierealiiiiits so diliiciilt to ascertain that 1 consider the 
 whole transactiou a loss, 
 
 I'l. ('. Coulter & Co. have failed and are jiaying COc on the 
 dollar. My aeeount against them is §07. SO. lieeeived a 
 hank draft in full for uiy share. 
 
 7 D. K. Cook bought from me a waggon on a lieu note. He 
 has utterly failed to meet the note and I repossess the 
 waggon, and after one year's use value it at §30. The 
 face of the lieu note was §tJO. 
 
 S (lave a cash suhscription of §5 to a football club. 
 
 Yi !.— MISCELLANEOUS. 
 
 24. Collections and Exchange.^I'M'lifini^e is the chari^e made hy a hank for hank drafts, hills of 
 exciiange, etc. ( nllections is the name fur tiie cliar^e mad(> hy ti hank fur forwardinj^ drafts for acceptance, 
 and for cojlectini^ and remitlino- money for notes and accejitances d\M at distant [loints. When a Imsiness 
 has niaii\- of these eharoes to deal with au account called "Collections and JvNcliange '"' is opened. Hut for a 
 few such charges it ■will bo satisfactory to dehit " E.xpeiise " or " Interest and J hscount." 
 
 25. Chattels. — In a hroad sense chattels include every species of property that is not real estate, hut in 
 a meicanlile Imsiness the jiroperly outside of tlie store and ollice, such as horses, waggons, hai'iiess, etc., are 
 classed as chtittels. 
 
 26. Furniture and Fixtures.- -This term appli"s to the property used in a store a ' oflice ; it 
 iiu'hides ciMinief-, scales, de.--k, chairs, safe, sto\e, etc. 
 
 27. Shipments, -^ruch of tlie ]>roduce of the country is not saleaiile at li< >t piic.'s in the immediate 
 vi'Miiity in which it is grown, conse(|uciiily tlie local }iurchasers or original jiroducei's ofieii shiii it to hetter 
 mari<ets. In the new market it is handled hy a comndssiou meichani, hut tiie owneiNhip remains with the 
 shijiper. 
 
 28. The shippiu" considers that hi> has goods in a warehouse distant t'roiii his i-c;,Milar place of husincs.s, 
 and such merchandise should !)(> re-naiiieil, to distinguish it from his other goods. I le coiix-iniently calls it 
 hy the name <^»f the agent, hut to distinguish .-iicli an account from an unwritten jiromise .iccounl he puts the 
 words " Shipment to" in front of the agent's name, 'i'iius for \'> liihs of huiter weioliing 7('i.'"i His., aiid 
 \ allied at 1 1'c. jier Ih, siiippcil to L. Kirin, we would dehit "Shipment to L. K irhy," and credit Md^e., -S'l'l .NO. 
 ^^ I! do not gi\ts or get anything, hut we use dehit and cieilit for the purpose ot" re-naming. If we pav freioht 
 we dehit tlie same account and ciiMlit cash. If we draw a di'aft on the agent on the strength of the cNpecied 
 proceeds, we credit the acc()unt. When the figent sells the goods he sends cash, notes fir his own promisj> for 
 the net proceeds. \\'e deljib ■\\hate\er \alue is recei\cd, and cred'. the Shipment account. 'J'lie account now 
 shows a loss or gain, and we close it into Loss and Ciain account. 
 
 29. Consignments. -The comniission agentdoes not own the goods, and upon (heir arrival gets notlii)i<r 
 and oives nothing. ,-o makes no entry that will he jiostei. lie does keep a memorandum hook, soecially 
 prepared for recording the facts of the case, Imt it is not a .]■ urnal. 
 
 30. If he pays any charges for the shipper, or accepts any draft.sfm the expected proceeds, he dchits the 
 shipper's name w itli the words "Consignment from " jircceding it. He dehits the .same account for his own 
 
 r promises he seiuls to the shipper when rendering iin 
 
 commission am 
 
 1 ch 
 
 irges, iinO 
 
 for tl 
 
 le luoiiev, not"s, o 
 
 Account Sales. He credits the account for the gro.s jiroceeils of the sales ; conseijuently, it will he .seen that 
 this is merely a .special unwritten pronii.se account, that will halaiice when the agent settles with the sliippc- 
 
 m 
 
 full. 
 
fit 
 
 (;i:ni;i;al i:xri!CIsks. 
 
 I'"ur t lie fiillowiii;,' four Kxcrciscs the [nipil may .loiirualizo tlio tninsHctioris, niid it' tlio Icnciici' tiiids it 
 (Ifsirulili) lii(! work iniiy 'in (•(Hiipli'lcd \>y cai-i'viti^ out tiu^ iiistruclimis j;i\('ii below cadi Mxi-icist^. 
 
 Dr.i'AinMKNTAL FoiiM J. -I'.ooK ki:ki'IN<; K.\.\min.\i;on' I'ai'Kus. 
 
 Toroiiiu, .lull. .'Jill. A. S. .Idiics coiiiincncps Imsiiicsis, iiivcst- 
 i I in as fnllows ; -Ileal estati', vjiliicd at .'ii!."i,.")(lli ; 
 ( 'iisli, .-^I.T.'id; tloiiosit in Hank of Moiitfi'al, .SI..")""; 
 iiiiTi'lianilisti, as |u r iiivciitory, .S.'i, ")(}() ; fuil. 
 valuiMl at .i?t)."i ; I). U'ilsoii's imtf facu valiif, §(i(M) 
 — jii't'siiit valiu;, .'*tl4(». 
 
 Jan. 4 llenlecla sturo and jiaiil one iiiuiitirs rent iiiatlvaiu-e, 
 liy cliiMiiii' cm I'aiik nt' Montreal for .ST.'i. r>onj,'lit 
 from r., M. ( Ii-.-iIkiui, iniichanilise, anioiinlint; to 
 .•?li.")U ; tjavc ill |).i\ nient liis (A. S. .loneK) note at 
 (;" (lays for sWO and <m.s1i for lialanee. Sold V. I'. 
 \\ liu'lil, inercliaiidise anioiintiiiL; to .'?'J4r) ; received 
 as |iayineiit in full, liis iinie at '.•() <lays for .S'J,")!). 
 Sold It. (1. iSrovvn, niereliandlse, aniountiiiv! to 
 •Stl'O; rceeived in iiayineiit. eavli. ■'^Kl", a draft at 
 (in diy-s on ('. S|)enec'r for i?17."i, and a .sight draft 
 on \V. (ieolge for §!'_'."). 
 
 5 Paid salaries in cash. ."*80. I'aid suinlry expenses in 
 cash. $■_';"). Had tiio note received from ('. 1*. 
 Wriv'lil, on tlie 4tli insl., discounted at l^ank of 
 Montreal, and proceeds (S"_'47) placed to his (A. S. 
 • loiies") credit. I'aid for advertisiiii^ hiisiness, liy 
 cheiiuc on Itank of Montreal for $4."). Sold '1'. < '. 
 
 Kerr, on liis aceejitanci! at .'iO days, niercdiandise, 
 amount ini,' to i?.")'-'."). Had T. ('. Kerr's acceptance 
 discounted at the bank; proceeds (•■::.")lJl) reeeiveil 
 ill ca.sli. 
 
 • Ian. G Prejiaid the note given 1!. M. (iialiani on the 4tli 
 iiist., l>y cliei|UO on Hank of Montreal tor .•^.'{94. 
 Acceptecl 11. (lordon's draft at ■"{() days, for ,•:<•_'( H». 
 \\'itlidre\v from tlio business for private use, casii, 
 .SI")". I'aid taxes by clieipie on ll.iiik of Montreal 
 for SS'). Lost by lire, merchandise, aniountiiiL,' to 
 i'M)0. Cash sales, .SI 'J"). 
 
 7 ("ompromiseil with 1>. Wilson for the note, nieii- 
 tioneil on (h(! .'ird iiist., by aeceiitiiiy cash, .S.")"(l, as 
 payment in full. Lost .*l2() ; paid the Under, e.ish, 
 .S-. for returninit; the money. 11. (i. Brown 
 leturned s-2,'> worth of merchandise. 
 
 S Houi.')it from 1!. McKay, merehainlise, ainountiiii,' to 
 .SliO" ; accepted his draft at 'JO days in payment, for 
 the full ainoiint. Prepaid acceptance j^'iveii K. 
 McKav to-dav, by- cluiitio on liaiik of Monlii ,il 
 f.ii s;!,-.;{. 
 
 Invfu/iin/ litki'ii Jiiii. S//i, <if c/tisi' itfilaifn liiiniinss: M'Tchnii'Iist' /infold, S-l. /'■'>. A''/'', /if'/xtnf, -v."'). 
 
 1. (li\i', .V. S. .lout's" .loiifiial iMiirii's for tlui t'orcgoiug transactions. 
 
 '_'. < )pcii .icconiits in liis licdLjcf, post the itoiiis. and close the account. 
 
 .'?, Write out ( '. 1'. Wriu'lil s note ieeei\ed .1.111. llli and 'V. C. Ken's acceptances fefeiTcd to on Jan. ."itli. 
 
 Montreal. S7')0. Paid cash for advertisiii;,', .S40. 
 t'ash sales, .•ii:4S0. 
 
 .r.ui. Aecejited .l.iines Aiide'soirs draft, as payment on 
 account, at ()0 days, in favor of Iv It. Davies, for 
 .*-.")(). Ueeeivci! from W. Jones, a clie(|iio for 
 SI 7."), as payment on account. Sent to Hank of 
 Montreal for deposit, .S4"J0 ; but two ten-dollar 
 bilks Were returned, bein>.' counterfeit. Cash sales, 
 
 10 Paid cash for stationery, .S".'."). Kceeived from W. 
 P. (iregoryhis clieipie for .S I , ■.'."{.S, as |ia\meiitiii 
 full for his note of the 7tli inst. llouglit from \\'. 
 ,1. Atwood, on aei'ount, merchandise, amounting 
 to .S:H)". Deposited in I'.ank of Montreal. .SI, ")(M I. 
 Cash sales, i^'I'M. 
 
 11 Paid Hiiiidry items of expense, in (rash, SIi). Sold 
 W. .lones, on account, merchainlisr, S4.")(). Depos- 
 ited in Hank of Mdiitnal, S-"". Cash s.iles, .SCil". 
 
 liiri'tifdi-jf fd/oit (if, clnsf. of' c/(i;/s Liisl inss : —Slorf tun! Lui, nihird of •'$Jf,1()0 ; Mcrchaudisi' on hand, 
 $i,2o(l ; II . /'. SinUh's )i"f'-, /n-'xenf nr/iw, saii ■<■/.-''>/. T he present rahn- <>/ thr )i(,/r (/inn X. (indntm <>>i. the 
 Sth lilst., .tdji ■S.'l)7 ; pi'isint ndnr nf d,niirs And'rson's dni/'l, ichirh irtis (ifrrj,frd aii thi- U/h /*^s■^, s,n/ ^.'47'. 
 
 1. .loiiitiali/.e the foregctiiig transactions. 
 
 •J. < 'pen all the nccos.sary Ledger accotnit-^. post all tlie items, iiiake out .a TrLa! li.alaiice and close the 
 Jiccoiuits. 
 
 .'{. Write out the eheqne given W. ,]. At wood on the Sth inst., and .lames .Vnderson's ilnift after it was 
 accepted on tli(> !'ili inst. 
 
 Toronto, .Ian. tUli. -<i. .M. Martin commenced business, 
 investing as follows; Store and Lot valued at 
 .SL"l»":Casli, .xi, •_•"((; deposit in I '.an k of Montreal, 
 .>'2,,")(Kl ; meri'liaiidise, as per inventory, .Sti.""" ; 
 W. 1'. Smith's note, oated < Ictober .•fid.' I.SII,"). at 4 
 moiilhs -face value, .SI. '_'"(') ])leseiit valiU', .SI.'-'""; 
 W. .buies owes on arcount, J^.'ilK) ; lie((i. .M. Mar- 
 tin) owes.k.ines Anderson, an accHint, .S.'>.")0. 
 
 Jan. 7 Deposited in I'.ank of Moiitn.il, SSO". I'aid cash 
 for temporary re|iairs, S\'2'>. Bought from W . .1. 
 Atwood, on .iccount, ineirhaiidise, amonnting to 
 .S4()". Sold \V. P. (ii-cgoiy, on his note at ti" 
 days, inerchandisi; to amount of .SI,-.jO. Cash 
 sales, .S.'i'JU. 
 
 8 Bought from N. <!r.ihain, merchandise, amounting 
 to.*!'JIO, and gave in jiayineiit a note at .'5 months. 
 <i,l\(' W. .1. .\tWood, (111 account, a ehecpie on 
 
 Hank of Montreal for .S.'l"". Deposited in I'.ank of 
 
65 
 
 Month iv\r,, Soph. Isl. inOO.— John Bowers uikI Honrv Jarvis oiitor into a partiiorship to conduct a shippin 
 
 and produce Itiisincss. Cain-; and Luv-c-; siiarcd according' '<> invcvtmi'tit. 
 .John liowi rs' cajjitiil coiiHists of — 
 
 I 'asli ill .M(.rcliaiits l'>aiik 
 
 8,(1110 ilip/. cir^N, vaiuiil at I'-'c. pt'P doz. .. 
 
 . Sri40 00 
 
 . <.ll'>0 (10 
 
 . :i(M) on 
 
 . (iOO 01) 
 
 |iil)t due by 'I'lios. Mays oil a c . 
 " " Jolni I'lnsw ilk oil a/c 
 
 Ifeiiry .larvis' capital coiisst.s of — 
 
 < 'ash §!400 Oo 
 
 ;i.000 do/. cgi,',s, vahicd at ]"2c '.HAt 00 
 
 Debt due by C. iV Iv Casper & Co 400 00 
 
 Sc]i\ \ l!oiij,dit of .las. Iio(i[icr it Co., olHcT furni- 
 ture, ;uid ]iaiil for .same with cii(i|ue. .. . oO 00 
 I T'aid petty expenses of starting busiiifss, 
 
 witli casli 
 
 1 l\iid into Merchants l>aiikoii (h'posit .... 
 
 'A ISlii]ipiil to .'^. 1 'atoll it ( '<)., Liverpool, on 
 
 eonsiL'iiiiii'Tit, to bo Sold oil our aicoinit 
 
 and lisk, ,'{,000 (h)Z. CL'tis, at i."ie 
 
 .5 I'aid fleightand changes oii.sliipiiii;nt with 
 
 ehe(pie 
 
 .') ])rew oii.S. J'aton &Co., at 10 days' si<:lii. 
 
 for ' ... . 
 
 7 Sold to T. Kolierts & Son, on acut., '2,0oo 
 
 doz. eggs, at 14c 'Jso 00 
 
 8 Received fioiii '1'. liolnrts & Son. ( '. iV K. 
 Casper & Co's aeecptance, due Sept. 
 
 21st, for 'J0<) no 
 
 8 lieei'ived from .1. toay, Toronto, coii.sign- 
 inent of 8,000 doz. eggs, iiivoiceil at 
 l.'{c., to be sold on tlieir account and 
 
 risk 010 OO 
 
 1 Acei'pted .1. ( i ray 'a draft on us at 1 i) d.iys, 
 
 for 700 00 
 
 !o niseouuted at Merchants liaiik ('. & K. 
 Casper & Co's acceptance, and got 
 credited for litO 5.") 
 
 1.-. 
 
 00 
 
 ;i:!.-) 
 
 00 
 
 4.V) 
 
 oo 
 
 •js 
 
 00 
 
 ;!i »i 1 
 
 (10 
 
 Sept. 10 niscoiiiit allowed .'? 4;* 
 
 14 Sold to MyiT-.V ('i...on ,iicl.. .■>.OllO doz. 
 
 eggs, from .1. Cjay's coiisigiiiiiem,at 14o. 7tX) 00 
 
 1 4 ( lur coinmissioii on aliove sale ,";") (to 
 
 14 I'aid storage, Or.iyage, etc., on d. (Oay's 
 
 con.signnieci, l.'i 00 
 
 21 ( '. & I']. ( 'aspcr iV ( 'o's aciieptaiiee it'tiirniil 
 
 dishonored and is ehargrij to our account 2oO 00 
 2,'} Having agretMl to take ~'tc. on the dollar 
 from ( '. it E, C.ispcr it <'o., in iis)iect 
 to their open debt of .S 100 and accept- 
 ance of -S'-'OO, received from theiii their 
 note at () inoiiths from date for the two 
 
 debt- 4.">0 OO 
 
 2.") liank credits ns with face of draft draw n 
 
 oil S. 1 'atoll iV Co., less .SI exchange.. 2",l'.) oO 
 
 2(i IJeceived an account, sales from S. I'aton 
 iVCo., for shipment of .'ird iiist. Cur 
 
 net proceeds .WC) 00 
 
 2t) Hal.iiice of net proceeds stands to our 
 
 <aedit on their books 20() 00 
 
 27 Sold to Xelxiii llro~., on acci ., the lial,nn-e 
 
 ut .1. ( .ray's consigimieiit , at I 4i, jiei lio/. 120 oo 
 
 ■J7 '>iii coiiiniission at ."> 21 oo 
 
 2S Hank paid our acceplance,fa\i)i of .1. (Ir.iy. 
 
 due to-ilay Too 00 
 
 2!l .\c, epicil ,1. (;r.iy"s draft on n^ al .'in days, 
 
 loi' '. " . . 2."iO 00 
 
 ".0 I'.iid otliee rent . |)er c he. pie I ."i OO 
 
 •■ elci k's s.ilary, ])er ihe(|ne 2."i oo 
 
 '• sundry expenses with cash for which 
 
 oil.' eheiple was i>siied 1 .", 00 
 
 John Kowcis withdrew fidui bu.^iiiess, per 
 
 eheipie jOO 00 
 
 Hem \ .)ar\ IS. ditto 7"i <Mt 
 
 1. Journalize tlio forcgoiiiy; transactimis. 
 
 2. Calculate your own imcntoi'V, valiiiiij^ f,Ug« on li.inil at 1 :.'i'. per ddz. 
 .'?. r)pcii tlie Lo<lgei' iicfounts, tdoso the sanit.', and ])ri']<.irc ;i Statcnu'iii. 
 
 Tlius. I.iiii'gand .la^. Short iir(! in partnorshiiuis lirickmakers. Tlieir .alVai is on ;)Oth Sept., 19f)0, wci'ca.s f'ollow.s 
 
 Assets. 
 
 ( IJ. Frame .«!.SOL' 75 
 
 ( >peii .U'couiits T. Salter ati 00 
 
 / .1. We.st ISO (10 
 
 P.uildiiics iViO 00 
 
 riant and .M.uhinery 1200 00 
 
 W.'igeoiis, carts, (to 24.") 1*0 
 
 Stock in 'I'r.ido l.'i.SS 00 
 
 Ue;d Kstat. 142S 00 
 
 Hills lice., S. I'latt. due Mtli Dec ."lO 00 
 
 (_;ash in I'.aiik I(il2 00 
 
 " Sale 20 00 
 
 Oct. 1 I'aid ground rent, ]ier che(pi(> i?."iO 0(( 
 
 " iiisuraneo )ireinium with cash 10 oO 
 
 " stationery with cash 2 CO 
 
 2 Workmen's wag.s 14.") 00 
 
 4 Sold 'I". Salter, brieks on ac<;ount I'.Mt 00 
 
 r^ raid for fuel »'..") 00 
 
 (•) I!. I'laine paid on account -IMI 00 
 
 7 I'aid \V. r)idwii"s account, per (dieipie, and 
 
 was allowed a discount of .«(),.S2 ISO do 
 
 ,S .1. West became a bankrupt, ami receivi'cl 
 a first and lin.d dividend of flOc. on the 
 
 dollar to settle his account !•»• •>'• 
 
 !i I'.oiight inaidiiiiery, per cheipie, from S. 
 
 Lecuiard ' 200 00 
 
 ID T.ud S, .lones, j.er chequo li'.tO 7() 
 
 list') 82 
 2!MI 7G 
 
 ;i48 ;n 
 
 80 (H) 
 -)() 00 
 
 r.IAHlLniKS. 
 
 ( ^v. r.rowii 
 
 ( )pen Accounts S. .(.mes 
 
 f L. Kobinson 
 
 Hills T'ay.'dde, S. Sharp, duo 17th Oct 
 
 Half-year's ground rent 
 
 Partners' Stock : 
 
 Long owns f| of net worth of firm. 
 Short the balance. 
 
 Oct. 10 raidi)ercli.Mpi.>. L. llobinsoirs a c. i?.'{4S.34 
 
 Lessiliseouiit 8.:U 340 00 
 
 12 Partners eacli lirew ])er chetpie, §.'10 . . 00 0() 
 
 14 I'aid sundry e.xjieiises with cash S .■?2 
 
 l(> Solil .1. West, bricks, and received his note 
 
 at 2 months 14t 00 
 
 17 Taid acceptance, favor of S. Sharp .SO 00 
 
 19 I'aid Hill's I'oiindrv, chei|ue, for reiiairs 
 
 to machinery ."> !U 
 
 20 Colisigiied to J. Norton, bi icdis, to be sold 
 
 on account ainl risk of tirin 4."0 (»0 
 
 21 Taiil shipping expenses f)f consignment , 'M 00 
 
 23 I'rew on .1. .Norton, at .'iO days. 3(1.") 00 
 
 31 .'sundry trading e.xpeiisis (hit! but not paid, 10 2S 
 
 Workmen's wages unpaid 14.'{ 0(t 
 
 Take 1 percent, oil' building's, jilant and machinery, waggons, furniture, to obtain inventories. Stock in trade, iS| (KiO. 
 
 .Foui nali/(\ [lost and prepare a St.it( lueiit. 
 
<ll 
 
 m 
 
 (ill 
 
 STOCI . 
 
 i'i;(>MISK AND .MnXi;^- .\(( '( »| ■ N'IS. 
 
 MI'illAMSM III- I:.\C|IAM:K. 
 
 I'AItTXKIJ'S PRIVATE ACroUNT. 
 
 Debit for withdraw- 
 als of cash or goods if 
 no private account is 
 kept. 
 
 '/>'/.;/ ,1/ //,<' riid uf tl„' 
 )i<iir III' Ml / lor ■•ihiiii' I'f A'/ 
 Lush (Ij tlinl ) hriniijlil j'linii 
 
 Liiss mill. (iiiiH Ai'i'iiiiiil. 
 
 * /lii'iiiiri' ml ill hit gidf 
 tvilh J'nsiiit W'inlli. 
 
 CASH- 
 
 Dfliit f(ir cisli III! Ii.'iiiil ,it 
 
 CdlllliirllCflliclll. 
 
 Debit for all current 
 money received. 
 
 Debit for all negoti- 
 able money received 
 (see page 21). 
 
 Ctifry ildwn in til^ik tlir 
 lialiim-i- |iitvi(iusl\ written 
 on crcilit .side. 
 
 I '[11 II an .■iri'iiiini I'nr (■;ieh 
 |i;ul III r. 
 
 ( 'ri <iit Inr net invotineiil 
 
 wllicll IS toiunl !'>■ lielluet- 
 
 ini,' l.ialiilities lidiii l!e- 
 Miiir.c>. 
 
 Credit for all addi- 
 tional investments. 
 
 ( / . i/it III I III! of III II r I'lir 
 sliiivi iif Sil (liiii liniiiijli/ 
 Ji'iiiii /^iifSdml (I'diii Ai'i'iiiiiil. 
 
 ( 'ill ry (Iiiwii in liliick in 
 i'ie:.(iil\\'iii'tliforre()iieninu 
 
 CA.SII lloiiK. 
 
 Credit for all current 
 money paid out. 
 
 Credit for all negoti- 
 able money parted with. 
 
 Credit for all deposits 
 made. 
 
 ' II I ill nil r/iisiiiij " /{ii'~ 
 iiiir, ," j'ti/liiiriil Inijhjiiri.-i n/' 
 iinnii IJ ml /ill III/. 
 
 Mt<n'STS W illl I'j:i;.S<)NS_M:nM whom \vk iuv. 
 
 Debit for all current 
 money we pay them on 
 account. 
 
 Debit for all negoti- 
 able money we buy and 
 send to them on account. 
 (See page idl.) 
 
 Debit for a 11 goods we 
 return to them. 
 
 Debit for ail drafts 
 they draw on us. 
 
 Debit for all notes we 
 remit to them. 
 
 Debit for all discounts 
 they allow us. 
 
 BILLS LAVAm.T!, 
 
 ( 'fedit lit I'oninii'iiecinenl 
 U'V Illl «u nwe them I'li 
 accMiinl . 
 
 Credit for all goods 
 we buy from them on 
 account. 
 
 f l(V l/il not ruh' <lff Itlnl 
 liii'iliin llirsi' iii'rmiiilH III liii 
 I ml III ill' III II I' i-r SI I ^ mill ss 
 till' sill, s iin- I qiin'. j 
 
 Debit for notes and 
 time drafts we pay. 
 
 Debit for all accepted 
 sight drafts paid by 
 banker. 
 
 * W rill' " I'll llii/itiii-i . 
 eti'.,' in ml iiil^. 
 
 • 'redit Ht eolinnelicelililit 
 lof all iiiiles and aeeept- 
 ances we (iwe. 
 
 Credit for all notes we 
 give to other persons 
 
 Credit for all time 
 drafts we accept. 
 
 Credit for all sight 
 dratts accepted to be 
 paid at banker s. 
 
 Cury ddwii in blaelc tiie 
 Ird.iuee jirevioiisly wiitt' ii 
 nil the ill hit si>!i'. 
 
 Debit for allcash with- 
 drawn. 
 
 Debit for all goods 
 taken for private use. 
 
 />. /.;/, /.// irrilllnj •• ■/',, 
 
 !■:. A. iStloirt iSti.r^," if lliis 
 siilr i.i siiiii/irr, (i)iil triin.ij'i r 
 siiiiH III rriilil iif Slink, 
 
 Credit for salary if one 
 is allowed to a partner. 
 
 Credit for interest if 
 same is allowed on in- 
 vestment. 
 
 ( '/ f luL til/ irriliiiij •• /.'// 
 K. A. iSI Illl it Slur/:," if llii.f 
 ■sii/i' is Kiiiiii/rr, (I Illl Irniisfi-r 
 name to diliil of Sli>ch. 
 
 BANK. 
 
 I >iliit fill- lialanee mi liainl 
 
 al riillillli'iiei'lllellt . 
 
 Debit for all cash 
 deposited. 
 
 Debit for proceeds of 
 notes and drafts dis- 
 coi;nted. 
 
 Debit for proceeds of 
 collections made by 
 bank. 
 
 ( 'ai'iy diiw ti ill lilaek the 
 lialanee jinviou.sly wiitten 
 
 nil eleilit .side. 
 
 Credit for all cheques 
 isfuied. 
 
 Credit for face and 
 exchange of all Bank 
 Drafts purchased. 
 
 Credit for all notes 
 and acceptances paid by 
 ban'.'.er without cheques 
 being issued. 
 
 Credit for interest on 
 overdraft. 
 
 Credit for petty 
 charges paid by bank 
 on our behalf 
 
 I i<l in Illl til t ' il . 
 
 A('('t»lNTS WITH l'Ki;.S(».\s ID wiiiiM wi: sKi.i.. 
 
 I>eliit at eiilllllieneeiiielit 
 till- all tiny nwe us on ae- 
 
 e^ lUllt. 
 
 Debit for all goods 
 they buy from us on 
 account. 
 
 ( IIV ill) not rii/i' iijl' null 
 liii/iiiirr ihi'si' iii'ciiiiiil.-< lit Illl' 
 I ml nj' till' III iir or M /, mill .>••< 
 
 (Ill siillH II ri' rqllnl. ) 
 
 Credit for all current 
 money they pay us on 
 account. 
 
 Credit for all negoti- 
 able money they remit 
 us on account. 
 
 Credit for all drafts 
 we draw on them. 
 
 Credit for all notes 
 they send us. 
 
 Credit for all goods 
 they return. 
 
 Credit for all cash dis- 
 counts we allow them. 
 
 I'llLLS 1;KCKI\- \1!LK. 
 
 I>eliit at eiiiiiineiieeineiit 
 'ill' all notes and aeeejit- 
 Miiees of others on hand. 
 
 Debit for all notes and 
 acceptances we receive. 
 
 Debit for all time 
 drafts we draw. 
 
 Cairydiwn in lilaek tlie 
 lialanco jirevioiisly \vrittL'U 
 nil the LTidit side. 
 
 Credit where notes 
 and acceptances which 
 we hold have been paid 
 to us or our banker. 
 
 Credit for all notes, 
 acceptances or drafts we 
 discount. 
 
 Credit for all notes, 
 etc., we sell. 
 
 Credit for all notes or 
 acceptances we endorse 
 over to others on acct. 
 
 W'nli • ■ Illl liaiaiiri .lie," 
 ill /'I 7 illl:. 
 
67 
 
 TUAPIXC 
 
 I'KOKITn 
 
 MKHOIIANDISE. 
 
 A(C'()rx rs. 
 
 KK(iM THKlSK. 
 
 MANUFA(TrniN« OK PKorH'CTIOX. 
 
 I'cliit ;il. ( iiiimutiiceiiient 
 " 'I'd liivi iitmy " for valiii- 
 
 l)f L'i"i(is III! llallll. 
 
 Debit for face of in- 
 voices bought. 
 
 Debit for all goods re- 
 turned to us. 
 
 Debit this account In- 
 terest and Discount, or 
 a special Cash Discounts 
 account for all cash dis- 
 counts we allow. 
 
 * I )i lilt fur ijii'ni III! .••ii/is. 
 ('iirri/ ■•'II nil' to crnlil nj Lu-^n 
 <inil (iiiiii. 
 
 ('any ilowii liivciitoiy in 
 lil.ick inU prtivioiisly ciitii'eil 
 (111 cixdit .side aliove ia leil. 
 
 I,rMI>i;i!, Kit. -AS a ItUANCU ok I'Klirj' hK MANrFACTlUISd 
 
 Credit for all sales of 
 merchandise. 
 
 Credit for all goods we 
 return. 
 
 Credit this account 
 Interest and Discount, 
 or a special Cash Dis- 
 count account for all 
 discounts we are allow- 
 ed. 
 
 *('tTin/ fi,r liinidiirii nf 
 iiii.ii'/i/ ijiHiiLi (it I ml «/ ijiiir 
 or Kit. 
 
 T)i'l)it for all liiiiihtT mi 
 lianil at cniiiiiRticiii!.'. 
 
 Debit for all further 
 lumber purchased. 
 
 (I lii> acooiiiit is taki'ii as 
 a tyi'i: of all accnuiits of 
 raw iiiati'rial used fur niaiiu- 
 farturiiiL'. Tiiat in same 
 way ;iaiiits ami oils, lianl- 
 \\;iie, ^\(M(1, iron, wiicat, 
 oath, t'tit. ) 
 
 Credit for any sales. 
 
 *' iidit j'lir niriiiliini nf 
 liiiiihfr ita Imnd iit i ltd nf 
 liKxilll .s-s. 
 
 *C'riilit at end of the i/ntr 
 j'or liiihniri' (If' iii-roiinl mid 
 ciirrii itinw to ili li'it of iniimi- 
 fiK'tiiriiiij. 
 
 UKAL ESTATK. 
 
 l>(l)it at coiiiiiii'iicciiii lit 
 forall lotsaiidfaiiiiswcow 11. 
 
 Debit for all lots and 
 farms we buy. 
 
 Debit for all direct 
 outlays for improve- 
 ments, taxes, etc. 
 
 Debit for all commis- 
 sions on .sales and pur- 
 chases. 
 
 ( 'I'lisi iiifii l.ns.tniid (!ii ill. 
 
 ('■Avrx down I iivcntory in 
 Mark ink. 
 
 Credit for all sales. 
 Credit for all direct 
 
 returns, rent, etc. 
 Credit for all products 
 
 taken therefrom. 
 
 '('iidil /"/• Iiiii/doi'i/ II f 
 c/iisiiitf, 
 
 ^'Cltisi'uilo I.iiysinid finiii. 
 
 SHli'.MKiNT TO K. A. STrAIlT, 
 
 Debit for invoice price 
 of goods shipped. 
 
 Debit for ail shipping 
 expenses. 
 
 " t'iiisi iii/i) /.ox.i mid (iiiiii 
 irlii i; Ai'i'iiiuit Sail s (.f /■'- 
 
 Credit for net pro- 
 ceeds as shown by ac- 
 count .sales. 
 
 *( 'iiie lull) LviS {Did (I'liiii 
 ir/iiii Ai'i'iJlilit <V((/'.'t (.'< /■- 
 riiiiil. 
 
 I'fliit lor all liiiisli. d or 
 |p;irtly liiiisln'd |_'()ods on 
 liaiid at I'oniiiH licilinnt. 
 
 Debit for all goods re- 
 turned. 
 
 Close to the debit of 
 this account the bal- 
 ances of all its branches. 
 See accounts below. 
 
 Close wages into it on 
 this debit side. 
 
 * l>ili'il fur i/iiiii : i-iirrii 
 smiii' III credit (ij /.o.v.v mill 
 (lllill. 
 
 Credit for all sales of 
 manufactured goods, or 
 proceeds of commodity 
 produced. 
 
 ' ':■! iti> I'm- I iii-i iiliiyij vf 
 liiiixiiid mid jiiui 1/ Hnitihi'd 
 jiroilticli. 
 
 Carry do«ii Inventory in 
 lilatk ink previoiLsly fiiteri il 
 on credit ,'<id(' aliovo in r< d. 
 
 I'lFI'll .STKl'.l'.T l'AVIN(i C'DNTUACT, 
 
 Debit for all materials 
 used. 
 
 Debit for wages paid 
 for labor expended. 
 
 ^Clusi' 'mill Lns.-imid Unin. 
 
 Credit for all sums re- 
 ceived on behalf of con- 
 tract. 
 
 ' ( 'lose intu Lu-sfi uud UuiH. 
 
 lUll.DiN'O. 
 
 Credit for any build- 
 ings we may sell. 
 
 Credit for the income 
 of any that are rented. 
 
 *('iidil Jiif I nri iihiril (it 
 rliisiii'l, 
 
 *( 'luai' iiiln l.ii-.-imid diiin. 
 
 I )fliit tor valui' of .stoic 
 or otlifT tniildings owikiI. 
 (•oin|>U'tu or in uourso of 
 (fcction. 
 
 Debit for cost of any 
 building we may buy. 
 
 Debit for complete 
 cost of further additions 
 or repairs. 
 
 I'/'is' iii/'i l,ii^< mid (I'liiii. 
 
 i '.irry dou .i I n\ riitorv in 
 l.larkjnk. 
 
 ( '. M. Wll.l.,s coN.sicNMrsT. (.V Promise .Xci'ount) 
 
 Do i.nt debit for invoice 
 price of goods \\lien tluy 
 ,ir.' V ivcd 
 
 Debit for all payments 
 for freight, etc., made 
 on behalf of the goods. 
 
 Debit for commission. 
 
 Debit under head of 
 Charges for drayage, for 
 insurance, for storage. 
 
 Debit for net proceeds 
 sent or carried to the 
 credit of s>apper. 
 
 Debit for any drafts 
 he driws on strength of 
 expectofi proceeds. 
 
 Credit for gross pro- 
 ceeds of sales. 
 
 'i'hi.s aceoiiiil riiust eio.so 
 in liidance \\ hen .in Accouii*' 
 .'^ale.s i.s rendered. 
 
6e! 
 
 KXPKNSE ACCOINTS. 
 
 KXl'KNSi:. 
 
 Ilcliit for all aitiolcH <if 
 tlii~ class (III lialul at cdiii- 
 
 IIWIiri'lMcIlt . 
 
 Debit for all articles 
 purchased for use, such 
 as postage stamps, fuel, 
 etf. 
 
 Debit for all services 
 re.ulercd for conduct- 
 ius the business, such as 
 clerks' hire, insurance, 
 etc. 
 
 ' l>i !,il '■ '/'(/ /iiri ii/iiri/ ' III 
 rliis'iiiii j'nf mill xii'ricfM ri ii- 
 
 tliTi <l hill ini/iil'lil. 
 
 I'liii:.' iiu riitiirii'S down 
 on (i]p)piisitt -iili;. 
 
 Credit for any articles 
 sold thai when pur- 
 chased wore charged 
 to tliis account. 
 
 C'l/'ii •■ /.'// Ini-'lifunj" 
 I'lii- III iirti s 1)11 liiiliil III r/ii.'i- 
 
 III'/. 
 
 ilil " /.'// fun iitnri/"' 
 fur >i rrii'i'.'i /in juiii/. 
 
 *i 'iii/iljor /('■•-■■< (I nil iiirrji 
 yiiiiii III f.ih'is (liiil liiiiii. 
 
 liiiiiL.' iuviiitiirius ilr)wn 
 on oiijiipsitc siilti. 
 
 COIJ.HCTFONS ANT) K\'< UAXt iK. 
 
 Debit for all pay- 
 ments for collection on 
 drafts, cheques, etc., 
 I'eceived. 
 
 Debit for exchange on 
 all drafts or money 
 orders purchased. 
 
 Fri;\riTi;i'; 
 
 Doliit liir all ai'tii'lcs en 
 liainl at ('(iiiiinc'iicin:;. 
 
 Debit for all others 
 bought. 
 
 I ' IIIV 
 
 lilai'k iiil' 
 
 lU II nivi'iitiiiv HI 
 
 H'nilil fnr ln.^.< ,,l r/.,ihii,i 
 mill I'll rri/ .iiiiiic In ili liit /.(<« 
 mill liiiiu Ai'i'uiuit. 
 
 \\i» i'i\ ruiii'X 
 
 Credit for any sold. 
 
 I *('riiHl '■'fill Inriiitnrii" 
 
 I arl'irli s mi Inuid til rloxinij. 
 I *<'ri'ililj\ir lusx, tntil rnrvi/ 
 
 sii'iw to tli'liit of Lusx (I nil 
 I lliiiii. 
 
 ('l».M^H.'^s^(>y. 
 
 Debit for any com- 
 missions paid. 
 
 *('/iisi iiilii /,((.« iihil liiini 
 Ad'iiHiit. 
 
 Credit for commis- 
 sions earned. 
 
 *{'!i).-<i' iiilii J.iisn and (inin 
 Ai'roiinl. 
 
 Loss .\NI» CATV. 
 
 Credit for gains from 
 various accounts on 
 page 67, or any on this 
 page that happen to 
 produce gains. 
 
 C/iiii liihi Sliiflc, hill nut 
 irith ml ink. 
 
 INTKKKST AND DISCorNT. 
 
 I>(l)it' at 'oiiinii'iiccnicMt 
 tor ilcdiicl ions (ill Hills I'jiy- 
 alili! or tX(uss(.'s on I'iil.s 
 iU^c'iivalilc. on iU'coimt of 
 I'ai'O Viiliit! lii'iiit; Kss than 
 casli v.'ilui'. 
 
 Debit for all interest 
 paid on notes, accept- 
 ances or mortgages. 
 
 Debit for all deduc- 
 tions made by banks on 
 our own or others' notes 
 we discount. 
 
 /;, liit •• I'l, Inn iiliini " 
 for i/rilnrlii>nx iitj I'tills Iti- 
 !•' irrili/f of rj'nssi'n on li'illit 
 /'ai/iilili'. on iircoiint of tin' 
 I'liri' lii-inij Ifss lliiiH fduli 
 nil nr. 
 
 ('Ii,sr liifii f,i,.<s mill (Inin. 
 
 Iti'iiiL; liou n iiivriitnrics 
 >ii c.|i[jositu .siili's. 
 
 FllKKHiT AX I) I:.\1MIKSS, 
 
 < I'lilit at ('on,ni(:iii'ciiii nt 
 for ilfdnt'lioiis otr Hil.s lii- 
 ciivalilo or (\\l'i'sscs on liills 
 !'ay;ilp|c, on account of face 
 liciiii,' less than (lie casli 
 \ .line. 
 
 Credit for all interest 
 wo earn. 
 
 Credit for all dis- 
 counts we receive for 
 prepaying our notes or 
 acceptances. 
 
 *('riilil " />// /nrintiirii' 
 fnr drtlurlinnx ojf /lill,< I'nii- 
 iilile or (-./■(•(■.•i.si .s on JliUs 
 III foiriilih', on nrconnl of tin' 
 I'fin' lii'iiiij li "Ii l/iiin till rnxli 
 mini'. 
 
 *('lii.si inin /.ii..i,iunil I inin. 
 
 I'>iitii4 down inventories 
 on oii]io.siti; sides. 
 
 If a .s[(eoial account is 
 kfi>t, 
 
 Debit for amount of 
 payments made for 
 transporting all goods 
 received for sale or 
 manufacturing. 
 
 (.'HATTF.I.s 
 
 Credit for any rebates 
 allowed. 
 
 *( ';■' '111 for /o.s'.s' at cln:<inij 
 mid rnrrii .imiii' lo ili'liil oj 
 Md.ie. or Mannfurturlnij. 
 
 Debit for losses from 
 accounts above on this 
 page, or any on from 
 
 Jiage 67 that produce 
 osses. 
 
 Debit for parts or 
 whole of notes or ac- 
 counts where the prom- 
 issors fail to meet 
 their obligations. 
 
 Debit for direct inci- 
 dental losses. 
 
 (7...>V /■)(/() .S/./c/-, lull llnl 
 
 Willi lid ink. 
 
 St'MMAWY OF ri.OSIN'C. 
 
 Kutir Ucsoiircn iiiM>iitoriis nf Tr.-nliiii.' .Tiiil Kvpi'ii'sc AccOlliits oil the 
 (TCilit siilc of I he iKirlinilar iircciimis to which Ihi'.v iMloiit.'. 
 
 i:\liinsc and liiicnst ntid Iti-iconnt snmcliiiics hi\c Liability inven- 
 tories. If llnTi' he liny, enter ilieiii on tlii' ilihit siile of iMtlieri>f iIipsh 
 
 II piiiii". Til. II elo.ie hal.iiii'c of the hr.iin'hes of M.iiiiifaeturiii); raw 
 
 luiiteriiil mill wa'.'iM iieeoiints into (he dehit sic|i> of Maniif.ictiirinjf. 
 
 Cliwe I'reljlil and Kvpress into Milse, or .Maniifiietiirin.r. 
 
 C!lo.so the lo-<8 or the if.iiii of .\Iils«., Man- 'aetiirinif, HilildiiiBa, Ship- 
 
 I)(d)it for all articles on 
 
 li.iiid at cniiinuncini.', 
 
 Debit for all others 
 purchased. 
 
 • '.irrv dow II iinciitory in 
 ida.-k niU. 
 
 Credit for any sold. 
 
 '('nil it "till Jnri'ntorii" 
 fnr nrtir/i .t on. /iitiid o.l rio.s- 
 in;;. 
 
 *Cri'ilil j'nr/o.i,'<, anil rarrii 
 .•■■a till' lo il' hit of Ln.t.i and 
 (I'lin. 
 
 (lIAKdKS. 
 
 Wli.sr inin r,n.i.i mid ('m'n 
 rmi III. 
 
 Credit for drayage, 
 insurance, storage, etc., 
 earned on goods handled 
 on commission. 
 
 I'.AI) DKHT.S ACCoriNT. 
 
 Debit for amount of 
 notes makers failed to 
 pay. 
 
 Debit for amount '^^ 
 accounts that prove t«. 
 loss in whole or part. 
 
 * IMiit " To Jnnnlnril" 
 for an csthnalf of llio.ii' libhj 
 lo prni'i' had. 
 
 Credit for any debts 
 subsequently collected 
 that were charged to 
 this account. 
 
 Cri'dilj'nr /(>,-(,■(, <ind cmrii 
 .lami'. to dehit of Ao.s» and 
 (I'liin. 
 
 Carry down inventory in 
 black. ■ 
 
 I Kvchatiu'e, Ch.lttpls, I'liiniture and Fixtures, P.id Pehts, into Loss and 
 llaili .Aeeoiinl losses on the ilehil side, trains on the ereilit. 
 
 Close Loss and tiain into Stock — black in Loss and (iain, red in Stock. 
 
 Ilalance Stock, Cash, Hank, Hills Uecei\ able, liills Payable. 
 
 liriiiK- down in black ink to lliu opposite side the balances of the above 
 aecoiints. 
 
 llrinu'dowu in lilack ink to tlie opposite sides the inventories of the 
 Trading' and Kxpense Account'^. 
 
 Take a Trial llalaiice of the Inventories and lial.inccs and Pergonal 
 
(I'J 
 
 r.Kh I!I,ACK KNTlilKS. 
 
 I'iNcly It'll ink ciitiy lias a lilack romiianinii cnny. l'!\('iv ifd ciilfy i^ a lictitiiais (»iu> and tliiows (lie 
 Ij(Hl<f('c out lit' Italaiicc ; the lilack ooinjiaiiifiii i;ip('s \i> the ujijHisilt' siilc (tf smiH' utlii" •icctmiit, or IicIku- ihc 
 ciilini; ((I tlu) (ijijiosiU) side of tlits suiiif acfoiiiit. and ('stalili--li('.s tlic riniililn-iuin. !!< I (iniic^ arc inailc first 
 and arc tlicicfurc j»i.sili\c ; Iilack ciiti'ics nrv tlicir iiCL(ali\('.s. 
 
 For Balances. — llic red ink cntfy is iiliovc flu: rn/iii;/. 1lic liiack lidciw nn tlic .i|,jiosiic vjdc in llic 
 same acciHiMl. 
 
 For Inventories. M\cry lnNcntory is entered in ic<l .alpoxc the iiilini,^ (lie Mark liclnw mi tlic i.|i|H)sitc 
 side cit:" t lie same aceiiiinl . 
 
 For Present Worth. — in '•^^tock "' flic I'resent ^\'(.^tll is the l.alance. and i> .'nlcivd in red ;dM>\e (lie 
 MiliiiL; "II ilie dei.il sjdi' ; tlit^ lilack is cnlci'cd licldw on tlu; ci'cdit side. 
 
 For Gains and Losses. In Tradim,' and lv\p(>iiso Ac'coun(, da- Lraiii-- and Id-scs lire enteied ill ivd 
 and (liclil.ick nc<,'a( i\cs arc cari'icd to i lie iippusito side ot' Loss and tlain Acccpiiiil. 
 
 The Net Gain is entered in lluj delii( side of ],uss and (iaiii iii Mack, and cariicd in tlie < redi( .-i.le of 
 Sdick- in red, (liiis making no rcil entries in Lo^s and (lain and giving one ca-e in which the ne^ali\c eniry 
 is red and jm.sitivo lilack. livery eiidy made in I'cd is set on the first available liuhi hhic line nn (he side nn 
 wliicl. it is cnten.'d. 
 
 SKT HI. 
 
 ]\rlffi tie JdiifiKil (itiil J.'i/ti< i\ iiikI (jrl (I 'I'r'iiil /lii/uiiri' j'lir //i, f'nJ/o}n' m/ fnnisiii'fii'us. Clasf tlf <irr<iii nts 
 mill iire/ntvi' a Stuh iiiiiit. 
 
 .1 il inonnj in (I'lio.siUif ill lldiil siiiiif iliii/, mid nil. riit^li juii/iikii/s unr S'l-' iiuulf ir'dli rliirjin f. 
 
 f''ri(lay, fSth. 1 )c'liv(Te(l tii suialiy iieisoiis for cash "lO tmis <if 
 c(ial at Sr>.7">. Ittccivcil 10 cars, "J'J." tons, of coai troiii 
 Henry & Co, 
 
 S iMir [ilace. — Tuosiliiy, Sejit. .S, 100 . I coinnienctMl liUFiiiess 
 witli a casli capital (if ?j,ono ami icntuil from .1. 1'. 
 lloii|icr a coal yard .at S(iO() jicr year. 
 Wed in s( lay, 4tii. ISoiiglit of Jloiiry I'iki^ o tcuiis, .'{ wa).'^ons 
 and liaiiiiss, etc., lor 8!H)0. C)iilcit<l and [laid for at 
 I'laiict H<ioU I'liiulery a set of ac<;ouiit liooks, paper and 
 stationery, iJ'J'J. 7"i. 
 'riiiirsday, atli. *( oiitracted with I'aiii,'iiiaii & ( 'o., r-uflalo, to 
 furnish within ,'{() da> s, 'JO ears, 4."iU tons, of assorted 
 .intliraeite coal at .T'f a ton at I'lack liock, I p.'iying 
 (reiL'lit; terms cash in l>0 days after delivery of the 
 wiioli\ 
 IViilay, (Jth. *I':iii.'a>,'e<l .l"lin 1". Hill ,as eUrk, .-it .*.';.■• fyr iial- 
 Hiice (if month, and .1. ( '. Mills as yard hand, at .ST.aO a 
 week, both coinnieiicing to-day. Keeeivcd from raii<,'m;iii 
 & C"i). a cars of coal, 105 tons, ami ]iaid freight SI per ton. 
 .^^atiirday, Ttli. *I'aiiployc(l as teamsters to eoinnienee on 
 Moiiday, Sam. Oi r, I'ld. Carter, Henry Wilkins. at.ST.TiO 
 a week. SoUl the following iieisons: JI. 1*. ( 'ollius, King 
 .St., 1 .^ tons at !?."i.7."> ; Mis. .lane lloiikins, ('entruSt., 11 
 tons at Sa.T'i, lioth delivered on Monday, and to Haw- 
 kins it Co. l.">t<ins ,at .S'laO, to lie delivred on Monday. 
 ( llecciveil cash in full for all thri!c sales.) Ordered from 
 lliggins .and Hill hay and oats for the .stalih; and received 
 liill, which will lu! paid on Monday. Iteecived from 
 I'aiigman & ( 'o. .^> more cars of coal, 120 tons, and paid 
 freight SI lier ton. lleeeived an order from ( 'aiiada 
 l''iirnitiii(' T'o. for I.") tons to he delivered early next Week, 
 and will Ik; paid for (list of next month ; price .Sl.tio per 
 ton. I'aid for nnloading a cars received yesterday, .SIO. 
 Moiid.ay, Otli. I'eceived from I'angmaii & Co. i) more cars of 
 coal, 11") tons, and jiaid frciglit SI per ton. Sold to 
 KUiidry jiersons for cash -a tons at.S'i.T'i, and to Sammd 
 liaker on account 20 tons at .'J.'i.T'i. Paid lliggins and 
 Hill for feed .StO.'iO. Heliveni. order of Can. Fur. Co. 
 Tuesd.iN, lOth. Coiitr.aeted with Meiiry & Son, Toronto, for 
 ,'10 cars, (i.'iOtons, of coal at ■S4.'.l."). f.o.h. ears here, jiayalile 
 8 months. SoM to siindry persons for casii (10 tons at 
 S-'i.T'"!. lleeeived from rangnian & Co. the lialanee of the 
 coal, .Tears, 110 tons, and paid freight !? I ]ier ton. 
 Thursday. I'Jtli. lielixcred to sundry jiersons for cash 40 tons | 
 of coal at S.'.T'i. Paid .lolm P. Hill .SlO on account of 
 salary. P.oiiL;lit of C. 1>. I'oster on uccouut fljOOO ft. of 
 liinitier for Kins, ST.". 
 
 •See imifc )"J, scenml entry. 
 
 llesults, net gaii 
 
 Saturday, 14th. Sctlhd with J'aiiL'inan it Co. liy a(cc]itiiig 
 their draft at .'>(» days, dated the I'Jtli iiist.. for the full 
 amount due them, delivered toll. Anderson 1.1 tons of 
 coal on account .at . •?."!. To. and to sundry )iei'Hoiis for cash 
 45 tons at S.'i.To, Paid for shoeing horses .SH.aO, and 
 +settled with the teamsters ami yard man to date. 
 
 Monday. Kith. Sold to sundry iiersons f(.r cash I'J tons of 
 coal at .S-I.T5. Keeeivcd 10 more ears of coal from Henry 
 & Co., 'J 15 tons. 
 
 Thursday, I'.'th. Sold to sundry per.soiis for cash .';.") tons of 
 coal at if').15, and to HoUis & iteid on accoiii.t ,'{u tons 
 at S'l.CiO. 
 
 Friday, '20th. Received fmni Henry & Co. the halaiice 10 
 cars, 'JIO tons, of coal and jiassed to their agents, Messrs. 
 Cook it Price, my note at [i months (hiled to-day, for full 
 amount of contract (nice. 
 
 .Saturday, "Jlst. Received from S.inuiel I'.aker cash in full of 
 account and ihdiveied to sundry ]iersons for cash 40 tons 
 of coal at S."i T5. Paid .h'hn P. Hill nn account of salary 
 SIO and fsettled with teamsters and yard li;ind to date. 
 
 .Monday, "J.Srd. Henry (.t < 'o. oiler a discount of 1 jier cent, 
 per month on my note if prepaid. 1 lifl(Ml it with cheiiue 
 and took advantage of the discount. Sold to siiinlry 
 ]iersons for cash .'!() tons of coal at .S5.T5 and to Peters & 
 Co. on .SO days credit, 1.") tons at S5. T."). 
 
 Wednesday. 'Joth. Paiii'inan it Co. agree to give lo pen int. 
 discount on mv acce|ptance for unexpired time. Pn paid 
 the same with ehii|ue less discount. S(pld to sundry 
 l^'lson.s tor cash 50 tons of eo.il at S5. 7-"i .and t(p Hollis & 
 Iteid, on account, 10 tuiis at S5.T5 and received from 
 them (111 account SIOO. 
 
 Friday, 'JTth. Sehl to sundry persons for cash SS tons ipf coal 
 at .S5.T5 and to A. P. Rouse on account 4 tons at .S'l.hO 
 
 Monday. .SOth. Sold to sundry persons for cash '-'5 tmis at 
 S5.T5. +Paid clerk, teamsters and yard man in full for 
 salary to dat(\ Paid C. J). Foster's account for lumher. 
 Paid one month's rent. 
 
 Inventories, Sept. .SO: 
 
 4y3 tons of coal at S5. Waggons, teams, etc., JSaO. I'ooks, 
 etc., .•i;i5. l.umher, .?."iO. Hay, S15. 
 t No ihi(|ueg. 
 S '.'TO fiO 
 
 Pr. worth 5,'J7'.».(iO 
 
MMiflll 
 
 70 
 
 CHAPTER VI. 
 
 si'KciAi- iukjks (»i' ()|;i<;inai. i:ntry. 
 
 1. 'I'lu! <lesii'(« (d icilmc till', laliiir nt |Misliii;;' In ;i Miiiiiiiiuia has i,'ivcu i'is(! to sciiini sjhmmjiI liooks of 
 on'juinal ciilry iiaiiicfl ('<i^h /».,,/>■, ,sVrAw Iin,,k, Inrnirr /,.»;/,■ ,i ini J'.ill lUnik. \u IIicm' ImpoKs transact ions of tlic 
 .same cliaiaclci- arc isolalcd, and uiic halt' tlie i">stiiuj; is (iisiiciisfil with. W'hrii llio Cash Uook is kept no 
 cash iiccouiit is uocHssary in tli(! JiiHlycr. 'I'hi; Sales r.nnk ,<;athers up in ono footing dozens of enlrioa tliai. 
 would iia\c lu l)c ])ll^t(•ll iinliv i(hially III I hr CIV ,i side of Mdse. 'I'hc linoice Hook in hk. iiiaiiiicr i^ives us 
 till! tolal ot' I he iiiiiiiia-''-, and in this way rcdiu cs the eni lirs to I he driiii side of Mdse Sonic iiookd<eepei's 
 I4"l, I he w hole dcliii of r.i,U licccixalile account, from the toial fooling' of a I'.ills Kcci'is al)le Jiook, and in like 
 ^natiiici' ih. V uct the whole credit of I'.ills Payable account from the Bills I'ayahle jlook. 
 
 2. ^'n (he page to the ^i^dlt is given an exercise which is wdiked out in a Cash Hook of the simplest form. 
 DKHIT r.\(;K. 
 
 rj,s7/ 
 
 1)1 
 
 April 
 
 1 
 1.-. 
 •JO 
 
 '-'7 
 
 30 
 
 I'olio. 
 
 Cieflits. 
 
 Stock 
 F. Gavan 
 Falls & Co. 
 J. C. Patersou 
 Mdse. 
 
 ' 
 
 
 
 iiivcstccl 
 
 piiiil on account 
 
 o tt 
 
 montli's cash sales 
 
 Itillntli' 
 
 3. The |iii|iil w ill never ha\e other than a hazy conception of IIk; Cash P.ook entries until li<; I'cali/.es that 
 a .iournal may he dispensed with entirely and all the entries made through the Cash Jiook. J'or llie jiurpose 
 of illustrating work of this character we give lielow the whole of the original entry of Kxerci.xs .1. The 
 transaciions involving cash are set down in this hook in the same manner as they are in the other hook alxjve. 
 JUit l>y ohserving in any Cash Book the fa<-t that the li>t, of accounts on the right page are debits and the 
 list on the left are credits, \\v. ni;vy make any Journal entry we choose by S(>tting down on the riylit pairo the 
 debit account and on the left the credit Siiu-e also, the amount wc; set down on tlu! ri^tht paye is exactly 
 equal to tliii amount set down on the left, we do not disluib the Cash account. The pupil can jnoNe this by 
 obs(M'\ iny: that we yet the same ca>h balance in »hh! book as the other. 
 
 JOUHXAL-CASIl 
 
 .April 
 
 lie. 
 
 '■■ulin. 
 
 1 
 
 4 
 
 
 10 
 
 1.-) 
 
 
 1.-) 
 I.s 
 
 
 18 
 
 
 •JO 
 
 
 •JO 
 
 
 •j-t 
 
 
 ;>u 
 
 
 1 
 
 
 fiolits. 
 
 stock 
 " Bank 
 /' Mdse. 
 
 '■ Hamilton & Co. 
 '/ Mdse. 
 ' Bank 
 ' Mdse. or (Int. and Disc.) 
 
 F. Gavan 
 ,' Mdse. 
 ./ Mdse. 
 /' Mdse. 
 
 Fcills & Co. 
 ' Mdse. 
 
 J. C. Patersou 
 
 Md.se. 
 
 invest fll 
 
 cll('(|m; ler hi\ . .Ne. 1 
 
 sale to l''alls iV, ( 'ii. 
 
 ]iiv. Ne. "J on account 
 
 pale to V. (iavaii on account 
 
 clic([uc to llaniiltoii & Co. 
 
 casli (lisciiunt oil Jiiv. No. 2 
 
 ]iaiii on .iccount 
 
 .sale to K. bawsoti 
 
 sale to falls i\l ( 'o. 
 
 sale to .1. ('. I'atcrsoii 
 
 ]iaiil on .account 
 
 sale to K. bawsoii 
 
 pail! on .account 
 
 liioiilirs casli salc^< 
 
 Jlii/iiiife 
 
\W 'UW\i fcg 
 
 Kfi^r nr 
 
 71 
 
 ('ASH IIOOK. 
 4. Tilt! Ca-Ii r.iMik, iiiiiiitMJiiilcly liolow, luis tlin dchits (if ciish <m tin- left iiiiyc ;iri'' llio cicdiis cm ihc 
 right, /.'■., I lus ci.^h receipts lU'o oti tho left ji.ige, and iIk! ('fi-.li jiiiyiiieiils on iIk^ ri,i,dil. 'I'lic ciitrii's rv(|iiiii' 
 the samo cai'o as tho work in -loiu'iializiiig. When yoii make an entry on tli(! left ]i;i-c il means yoii .u'ot 
 cash, and ,i,'aM) some other valite. 'I'lio n a nuj of the valm- you (,'avo is set down nrst lo the date, and is 
 followed liy ail e\[ilanat inn ami the amount. Tho entries on tho right jiago an; mad(! in a simil.ir manner. 
 When yon liavo finished tlu! hook is elosed and l)alaneo liko a (.-ash aeeount; in faet, that is what it is. 
 
 rXpril IS (;/> Sold ^^oods tn Fulls it I '<<. i>ii at rniiiil ....:? •>."> 
 'JO (// 1 Siilil f,fii(j(l.s tt) .1. ('. rali'isoii (111 ;iiTiiiiiit . Ills 
 -U Falls it < 't>, paitl on ai'ftiun', tii>li 
 
 April 1 ( '(iiiiiiitiicfil I)ii'<in('ss with oawli gil'J.'ii) 
 
 •J l':iia iiitt. the 'I'latltTs' I'.auk I'3H» 
 
 4 [II) I'Muii.'lit j,'t>(iils aii'l p.iiil liy i'lii'((U(' IS'2 
 
 () (/;! Sold ^diids tt) Falls fc t 'o. on auceuiit. 07 
 
 (> (i) lltPM;:Jit },'00d8 fioill llaiililton & Co. oil 
 
 at:ut)lllit 
 
 10 {i() Sold jioods to F. < ■avail on ac'couilt 
 
 1") (.)l'aid ilainiltt)!) itCti. liv cliitnif -J.S.j 
 
 {(•) " " hy disi'iiiiiit l'> 
 
 lo I'", (lavaii paid on atx'onnt, cash 
 
 IS (/) Solil i,'t)tids to K. I,a\\!siui till atfoinit 
 
 4t>r) 
 7'.t 
 
 .'iOO 
 
 17.". 
 Il-J 
 
 I'.T) 
 
 L'O I'aid into tin; 'I'lailcis' l>ai 
 
 '24 (/) Sold goods to LawMiii it Co, on a init 
 
 27 .1. C. I'atersoli paitl on a(;i;oillit, (:a>li 
 
 •J7 I'aitl Ilainiltt)!! <t Co. tasli 
 
 'M) Solil j.'oods for cash during iiitiiitli 1-7 
 
 'M I'aitl cxjitiisis with cash diiiiiiL; iiiotitli 'M'> 
 
 :iO Paid iiitt) the 'I'ladci-.s' Hank Ino 
 
 CKKI'ir r.\(iK. 
 
 JiOOK. 
 
 April 
 
 lie. 
 
 Ki.lio. 
 
 •} 
 
 
 '_>() 
 
 
 '27 
 
 
 :«) 
 
 
 m 
 
 
 
 
 I)>0>its. 
 
 Bank 
 
 Bank 
 
 HamiUon & Co. 
 
 Expense 
 
 Bank 
 
 d('[iosHfil 
 
 jiaitl tlitin till account 
 iiioiilli's expenses 
 (lul)Osilcd 
 
 * Bala net' 
 
 1 '_'! M I 
 17"- 
 
 30 
 
 100 
 
 2'2 
 
 I (5.18 
 
 5. The ti'.iiis.-H'tioiis marketl with tho letters of the alphahet in Tvxereiso T, are those that onlinnnly 
 wonid he eiitereii ill t lie J t airnal, while tlio.se unmarked wtiuM ho enteivd and pt.sted tVoiii ilieCa.-li Uook. 
 r.ut t;ike tiansaelion ('0, f'>i' instanrt>: It demands the entry Mdse. dfhiied 1S'_', Bank ereditttl IS'J. Kow 
 hy setting dt.wii Md.so. among the dehits on the right page, it will ho entered on tho debit side of INId.se. 
 account when tho posting hegiiis, and hy setting down Bank aniting the credits on tho left jiage an entry will 
 he made on the credit side of Hank account when the porting hegin.s, and since each of tlit .n has the numiter 
 1S2 as tli(! measure of ils \aliic, they will not intorfern with the cash acctmnt more than to swell the tt.tal 
 ftiotings at the htitltuii of tho page. Let tho pupil study out any t.f tin- other transactions (try '•(■'') Jiml he 
 will see that a .loiiinal ( ';i<h I'.ook is after all a very simple system. 
 
 — __ more. -^ 
 
 Date. 
 
 lulio. 
 
 Ai'i-il 
 
 4 
 (i 
 
 
 
 10 
 
 1.-) 
 
 IS 
 •-•0 
 •21) 
 •2i 
 
 ;;n 
 
 •M 
 
 Itcl'ils. 
 
 Bank 
 n Mdse. 
 . Falls <& Co. 
 ■ Mdse. 
 ■F. Gavan 
 'Hamilton & Co. 
 /K. Lawson 
 ;/ Falls & Co. 
 /'J. C. Paterson 
 
 Bank 
 '■ Lawson & Co. 
 
 Hamilton & Co. 
 
 Expense 
 
 Bank 
 
 (lujiosited 
 Inv. N'o. 1 
 
 1 '2t"i' > 
 J 8*2 
 
 
 i^oods on accoui't 
 Inv. No. 2 
 
 07 
 4'2.'5 
 
 
 good.s on account 
 paid them on account 
 gtiods till account 
 
 7!l 
 
 yi 
 
 
 11 11 
 
 Ids 
 
 
 deposited 
 
 f/ootls on account 
 
 jiaid tlicin on accoui t 
 
 175 
 112 
 12.-) 
 
 
 llltllltll S C.X|K-IISCS 
 
 depositctl 
 * Balance 
 
 30 
 
 100 
 
 22 
 
 '3107 
 
 
 
 
 The Cash Hook for tin: Jh-xt part of Sft IV. is vorM <>>if /'t yon, o» thp vr.rf. tiro paf^s. Tnu viU copy thf 
 sa)nr,pri-/>iir(' a Juuniafjor the ollor tmu.narlJons, juM hoth hnoks to the L>dijer, ami ijpt a Trial llalauce. 
 IlariiK/ ihinn so. iroik the hulaiice of Set 1 V./or t/oiirsif/. ^Vov.- the accovnls ami prrpare a SlaleiHi'nl. 
 
SKT l\- 
 
 (Pupil's lialiio Im'I'i') liiiH tliis iliiy coiiiilH'liocil tliu urociry 
 l)iiHiii('sM, iiiv(!MtiiiL; as iDlliiws : ('ivsli in sale, S|,"i(( ; imsIi 
 ill Mi'nliaiit>« Hank, sl.i'.uO; j^'k.hIh mi slow, ijil.l.'iO, 
 .lames Clancy owes on his iintc, il.itfil Oct, 'J, I'JO- , at 
 .■{(Mlays, a(.'U ; I'. K. Mdntiwli (>«is on aci^mnt, .■!<.S0 ; 
 !|(iii|i. r^ Co. <i\v« (111 ai'UOIlllt, ii^rilt. 
 
 2 liniiulil, Jlcllilfl'siili iV Co. III! Ilivoict.' rif ',V) ilai's' >,'ni- 
 
 crriis. ainoiintiiiu' ti) ."J'-MO, ' a.sli salts, mJ!». K) 
 
 3 Solil lliiL'li Mil'aiiaiK! /, liaiTfl ^,'iHii Hiij^ar. li'iO llm., at 
 
 .'ic. ; 1 ca'lily tea, '_'(> lliH , at ">0c. ; 1 1)"\ raisinn, "is 11 is., 
 at »)(•.; -40 IKs, liaiii. at l.'i.' ; I l.ai,' "atin.al. Mt(» lbs., at 
 •*S.."iO |)ir cw t. lliccivi'il nil acciiiiiit. Ill' sale, I'.i.sli, .SK', 
 lialaiii'i' cliaii.'fil. I ir|i(isitc(l in tln' .Mi'icliants Hank, 
 ?|(MI, I'aid jHT i'lici|iii' Cii|i|i, ( 'laik Cn. , l.iinitid, lir 
 st't lit' liiHiks iiiul staliDiifiN , !^'M. I'aiil r.isli fur Irriulit 
 on iiiMiire No, I, !<7.i'-. Cash sales, #lu'..Vl. 
 
 DKI'.IT I'AiiK. 
 
 ( ( '. K. Mrlniiisli |i,kiil nil (ii'i'iiiint iin i xprr^s inniu'V onicr 
 for ."'Kl. Solil llciiry i'liilics a lull or ^i; ctrn's, iiinoiiiit- 
 iiiu to >'■-'(», iiiul rt'iMMvi'il III |iuyinriit a iiot(^ a^'aiiist Isaac; 
 I'onl for .■?■_'"), iliio ill 18 (lays, ami j,'avc Inni 10 Ihs. of 
 Ceylon tea to lialani'e, .lames Clmiey remitleil a jioHt- 
 (illii'c money onler to pay Ins note «liii;li is iliie tn-il.'iy. 
 I'aid for liandhills for advertising', .S'.S.l'J. I'aid for 
 i'liaiii.'iiii; .shelves in the store, casli, .*<1(>. ( 'asli sales, 
 
 S'.'I.HII. 
 .■> |)e|iiisilid ill tlu! .Mercliaiils ISank, .*.")() ; accepted llciniei- 
 .son iv Cos draft .'it HO il.iys in full for invoiic .No. I. 
 l>oiiL;lit lit Sloan it \N illiain.s invoice No. '2, amoiinliiiji to 
 .VHOO (net cash). ,So|d lliiirh M.'Karlaiie, on aceount, ."{ 
 lilils. lioiir, at .<.">.■-'"> ; I lil.l. ytrilow simar, .'inO ll,s. net, at 
 ■Jc. ; 1^ do/, cans corn, at. SO.', do/ ; 1 sack c.ininical, at 
 jSli.oO;' 1 tiili, .".ti His., l,Mtt( I, al I le. Casii sales, .««;{7.'_'0. 
 
 CAS/f 
 
 Hatk. 
 
 liM) I 
 Nov. , 
 
 Fnlli 
 
 ./ 
 
 To TIIK C'HKIHT OK. 
 
 I'urnrii.AKN, 
 
 Sl-NlllllKK. 
 
 MrwK. 
 
 'I'.lllik ('(lll|Ues 
 
 -' ^/ 
 
 .'i -Ji;!) H. T.XcFarlane 
 
 \ -is I C. K. Mcintosh 
 
 I IS Bills Receivable 
 
 i %^ 
 
 s 
 
 i:; 
 11 
 1 1 
 i.-i 
 
 :;' 
 
 
 Mdse. 
 
 ItiiltiiK'i' III mife 
 liiiliiiiri' in Hank 
 cash sal(!S 
 on aeci'iiiit 
 cliei|uc No. 1 
 cash sales 
 oil ai'i'oiint 
 ( 'lan.y's note 
 cash sales 
 
 it 4 i 
 
 cheipie No. 2 
 
 cash sales 
 
 ehei|Ue No. ,3 
 
 cash s.des 
 
 pari of sal(! to I'oolc 
 
 cash sales — four days 
 
 cliciple .No. 4 
 
 cash sides 
 
 cheipic No. i) 
 
 cash sales 
 
 Tiiliil rush .s«/f.'i 
 
 'J'll/ilf iif' I'lll'ijIll'S 
 
 * llaUiiici ill Hunk 
 
 linliiiiri' in siifi' 
 liiilinicc ill litiiik 
 
 ' 150 
 
 I lion 
 
 to 
 
 /.S,7.'. 
 
 411 r,.-) 
 
 "2/584" I Tt/T i" 
 
 110 ' 2n I 
 1 01.-! I .T) 1 
 
 •J! I 
 
 I'J 
 
 '-'1 
 
 :h7 
 
 .14 
 
 20 
 
 20 
 
 11.1 
 
 S-1S 
 
 10 
 
 .-)() 
 
 SO 
 20 
 
 50 
 
 .10 
 50 
 
 9 
 
 20 
 
 .100 
 
 40 
 
 G 
 
 'J5 
 
 CO 
 
 
 !.ll 
 
 fi.- 
 
 * 1(51.1 
 
 .15 
 
 2025 
 
 "oo" 
 
 
 
 6. I'iic .•ilioNc t'i)iiii lit' (.'iisli IJook is ill ]i,ifL .'i .l(iurtiril-( "ash Hook. -Viiy tniiisjictioii tli.tt iinohcs iSaiik 
 Hccoiiiii is ciilorcd ill this Ixiok rather than in the .Joiini.il. Wlioii ;i hook is kept in ti;.s iii.iDiicr we 
 
 I'djiiirc licit licf it Cisli ;i( utit in tln^ I.cdoi'i' nor yet ii J link .•iccotint. fn making out the Til;il I'l.il.incc. enter 
 
 with ilie (Icoit footinos ot" (lie \.irioiis Jiccoiints tlio h<i!(iiire in. Ilank and hnJiDice hi ttnt'i',. 
 
 7. The Jiiijiil will ol»sci'\(i inoprninj^ \v(> put hoth tlicsii balances on the dehit piigoin tli(; Sundries (•dhiiiin 
 hut we eiitor tlie liank iial.incf! on the otlier payo as well. Til chxsing we put the l)alaiu'e in th<! safe in tin; 
 Sutniiies coluiiin, on tlie right page, and the halance in the bank (obtained fronj stub.s of eheipies and Rank 
 Pass 111 lok) ill tli(^ liank eoltniin on the h^ft page. \\y jirranging the work in tlii.s manner we have a book in 
 whicli, if yiiu subtract the totals of (lie right p;ig(! from the totals of the left, you get the Imlanri'. of cdsh insafr 
 and if you siilitract tlie I'ank column of tlui left page from tliat of tho right, you get tlie halatic: in thf. Hank. 
 'l"h(^ whole 111 ink is the Cash .•iccoiint : tin! Hank coliiiuns are the Bank account, liwt with this jxHudiarity 
 that the criMlits are on the left, and tlie deliits on tlie riglit. 
 
 8. Kor elic([ucs is-ucd two entries ar(Mna(h\ one on c;icli jiaije, since the trari.saction is really a Journal 
 entry. I'or all deposits one entry i.s all that is iiecessurv. 
 
— -.. , -^— a. . 
 
 iiMiiicy onior 
 
 ll'N, iUllllllllt- 
 
 III 10 ll>s. lit' 
 1 1 I'll n jiimt- 
 ililt! ti)-iliiy. 
 . I':ii.l for 
 ('anil Mill'.-*, 
 
 till ilcinlir. 
 oirtj Nil. I. 
 
 iiiiiiiiitin^r to 
 I .'ici'Dinit, .'< 
 
 I) llprt. lift, ftt 
 
 •ipiiinicil, at 
 ales, ."iilJT.'-'O. 
 
 Hunk fhripH's 
 
 20 
 
 .•too 1 40 
 
 () 
 
 •J.') 
 
 CO 
 
 
 ', / / 
 
 (' '• 
 
 'Kil.T 
 
 ;{■) 
 
 00 
 
 
 
 \cs I '.ill I k 
 
 .IDIll'l' \Vt' 
 llcr, riitfl' 
 
 S Ciilmiin, 
 
 ifn in tlic 
 111(1 IJiuik 
 I l)()()k ill 
 •A hi uti/'f, 
 ill': Unnk. 
 I'ciiliarity 
 
 I •r<nirnfil 
 
 7 I'unl (mhIi fur fnijilil mi iiivniuu No. •!, .?lii ; |iii,iil chhIi fur 
 iD.'il for list) ill hioi(', .*('», l)(!|ioiiittii .'<7.'). NVitliilrcw 
 from liiLsiiiisH per clii(|iu!, ^'J.") for oiiunli Hulmcriiitioii. 
 
 CaHll HlilfH, ■'J.'M.'lO. 
 
 S lioiiylit of lli'iiry l)ruiniii()ii(l, ({(xxis as jier iiivoioo No. .S, 
 ■S-tOO, oiii- half net c'lxli ainl tlit; rcinaiiiilt'r .'!0 days 
 ^'oikIh. Kciiiittoil .Sloan k. WilliariiM a liank ilraft |iiii'- 
 I'liaHi'il with clii<nic for full aiiiiiiiiit of iiivoici; .No. 'J. 
 ( I'lxchaiiKu oil draft -JOi:., iiudiidcil in cli(i|iii!) ( 'awh 
 s.-di's, .S-0. 
 
 !• Sold W, I), j'ooji' a liill of j;ooils aiiioiintiiij,' to .■"'7 I l!'- 
 itivdd ill payiiifiil Ins clii'(|U(i for .'?'J0 and hi.s imtf at 
 I. lie iiioiith for the li.d.iiHT. ( 'a.sli .siili'.s, .S-JlMKl. 
 
 10 ( '. K. .Mrliito^h asked nil! to n |itaii order for 7 cords of 
 
 uood at.SJ ."lU a cold, oil a fanner lialiied Jaeoh lluist. 
 Hurst calli'd to-day and ajiieed to hecoiiK! ns|ior.sii le 
 for till! delivery of the wood in two weeks. J'aid ca.-h 
 for ]>i>Hta,i,'i! 8tttiiiii8, 7')e. Caali sales, §,'}0. 
 
 II 
 
 l.< 
 
 It 
 
 1.-) 
 
 I'loll^llt, of llelidel'son k < 'o. ilivoietl N:>. 4. a>lliilllllill>{ to 
 $11)0, of which .SliO IS net cash and the lialatiee liO dayH 
 ({ooiIh. Accepted Henry I iriinmiond s draff at l."i d.iyi*. 
 this \w\\\^ the average due d.ite of the iwo kinds of 
 jioods of invoice No, ,'{. Sold IVtir Scott oil aceolillt, 
 .Si Worth of Miliar ; lo ll.s, of ham, at I4i'. ; -."illis. hiitter, 
 at Kic. I 'a>h sales, .S'.'l. 10, 
 
 lleieived a lull for ad V( 1 1 isiiii; ill the l''ree I'nss, .■jlt(. 
 Hooper »t < o. delivered oil acciillllt ■_'"> hays potatuUH, 
 at t'lOi.'. per Kai.'. • 'a,-.li sales, !?;V.'.::0. 
 
 heposited .*!L'0II. I'aid all older of the I'lee I'ress ill 
 favoi'of their foreman, .loliii Hill, \« ith <;ooiis, .s.'i. I'aid 
 ficij.'llt on ilivoii e No. I, W llh clieiiue, .SlJ. '_'.'). ( ash sales, 
 
 !?•-'.■>. .'in. 
 
 IWni^htof .sjo.iii iS; Willi. mis invoice .So. ."» .iiiiountiiij,' to 
 ^.'{t. 'tiO d.iys ;,'oi)ils|. I'asseil to lleiidersoii it Co. my 
 cliei|Ue .'?(iO, and my iiotn at 00 days for invoice No. 4. 
 Cash nalcH, .*!'.',"i. 
 
 CltKDri' I'ACK. 
 
 HOOK. - 
 
 llATK 
 
 IIH) 
 
 Nov, 
 
 Kolio 
 
 ;! v/ 
 .•{ v/ 
 :i I so 
 
 \ ' ^ 
 
 7 I ;<(> 
 
 4 
 
 •_M() 
 
 s' 
 
 v/ 
 
 ;<ti 
 
 Ti) Till! r>rniT or. 
 
 l'.MITICri.AR«. 
 
 Si NMdKM. K.XI'KSHK.. I;allk l>l'|KlHitH 
 
 Mdse. 
 
 Mdse. 
 
 7 
 8 
 8 
 10 
 14 
 14 
 15 
 
 stock 
 
 Sloan & Williams 
 
 Mdse. 
 
 L'04 Henderson & Co. 
 
 30 
 
 Expense 
 
 llalanee in Hank 
 
 de[iosited 
 
 set of Hooks, (',('.( 'o, 
 
 (;. T. It., freight 
 
 advertising 
 
 chaiijiinu shelves 
 
 deposited 
 
 (i. T. H., freight 
 
 deposited 
 
 toll of coal 
 
 witlidrew from Imsiuesa 
 
 pd. them on a c. 
 
 exchange draft 
 
 postage 
 
 deposited 
 
 ('. L'. I!., freight 
 
 pd. them on a,c. 
 
 To/dt /i)oti)ii/M 
 Total (li'/ionits 
 *liaUtiife ill 8ufe 
 
 1 
 
 4'.» 1 
 
 10 
 
 1 
 
 25 
 
 
 •M) 
 
 
 I) 
 
 25 
 
 (iO 
 
 
 ,', " ,s 
 
 '; 7 
 
 40 
 
 i).-» 
 
 20'_'.") 
 
 
 •no 
 
 2.*? 
 
 •J3S4 
 
 So 
 
 2« 
 3 
 
 ',ri 
 
 40 
 75 
 
 Itino 
 
 |(N<I 
 
 50 
 75 
 
 200 
 
 tO'^i 
 
 2025 
 
 00 
 
 ic.i:i 35 
 
 Riilanoe in Bank 
 
 9. P^or Set IV. all tlie tfatiRactions tliafc involvt' ci'tlKM' (';isli or Hunk will lie fuiirnl mi citlitr 'nic pane or 
 tho otlicf of tlio book above. 
 
 10. From tlio debit (loft) page po.st/o thn crfiHt (rig]it)of each account mentioned on that ji.age.juid finm the 
 (M'edit (right) page post to the debit (left) of each account meiitioiii'd on that page. When an entrv is posted, 
 set in tiio))ago number of the account as it is done in the book alio\e. N\'licn setting the folio of the Ca.sh 
 Book ill the Ledger account put '• ( ' " in tlie explanation column. 
 
 11. Tn working the remainder of Set TV. (the transactions of which are given on the next page), set down 
 the. fiii/iitin: in, na/'e and lialtnu-e in hank on the left page in the Sundries column. Then .set down the balance 
 in b.ink on the other page in the Bank column. Proceed with the Cash and Bank entries in order of date. 
 A jiayment with either che([U(5 or current nioiiey will be entered on the rii.'lit ji;i;.'e to tli(! debit of the account 
 affected. If it is paid with a cheijue, set down on the opposite page the numiier of tlie cheque in the 
 Particulars column, and the amount in the l^ank column. Cash sales and expense items are each kejit out 
 of the Sundries column till the end, and it is needless work to write (heir account names till they are 
 required. When the entries are all made, set down the footing in small figures and close like the above book. 
 
 WBSS. 
 
SET IV l'nnfi:ntr,f. 
 
 Nov. Id I'aul fn'iylit "II Iiivni.^u Nd. 5, .?l.'jn. S«il.l ( '. I\. 
 
 Mi'lnl<<>l| III) tlci^dllllt : - (in/. I'lllLH tKliiilldt'H lit 
 
 IHIc. jiirdo/.; I Hllillll cliroHc, l."> lliH.,ilt l'_'i'.; Ill 
 
 li:iy.s of iiiitilt'MM at T.'ic. ; Ml ill)/.. fu'ijH, lit I'Jc; 
 
 •J Mils, iipiilin, at ?i- ; "i gals, coal I'll, at -Oc 
 
 ( 'anil salts, ,<|."i 'Jll. 
 I7 IJii I'lviil triiiii siiiiclrv iktsuhh lo-ilay in Irmlf, l.'i 
 
 IiIpI-*. a|)|ili-s, at .':;!l.7''i; '•'» II'h. Imitcr, at l.'if. ; IK 
 
 li.ii;^ (iDtaliM's, atlilir. ; arc'C|ilcil .Sjnuii \ \\ illiains 
 
 ilralt at '2 iiiontliM Im- !<',H in lull tm' liivuict; 
 
 Nil. ,"i. ( asli Halo.i, •'^■J.'i.TO. 
 l,S l>i|)(..-ilftl .:!||t>(IO. .Si, 1,1 KiilMTt Watson nn liis 
 
 iiiiti.' at niK! iiiuutli a lull III goixlH, .''i'J.S. 7 'i. ('aHli 
 
 sails, .«!:it'>.!M». 
 •20 Uii.ivid in tiailf, I'JO 11m. l.iittcr, at I'ic.; 20 tloz. 
 
 i'>.'L!s, at Nc. ; J'J hafs iMitatot'H, ;it CO,' ; lliinper tt: 
 
 Cii. |iai<l till' lialainaM)! tlnir in'idunt with tliri^ui'. 
 
 Cash .s.ilis, ,■«!•.".». (HI. 
 Ul IViiit'litof lloskilirt & Co., 1 c.ir. I'-T) l.hls., wait at 
 
 ?<l |iri' lilil , f.ii. 1). lirii', aiiil passi'il to tliiir 
 
 ii;;(iitrt my rlirijiii' for tlio anioiiiit Irss 'J'' for 
 , cash, .luroli lliii'st, |,aiil tin- ordi't' nn liirii in 
 
 full of till' ili'lisi'iy of 7 coiil.s of j^immI wood. 
 
 Cash sali'^, $'_'."■). 71 ». 
 'J'J l»i'|ioMitL'il .'jlS. j^aao Ford j)ai(l lii.s note in full 
 
 with cash, .S-">. llecc'iveil iu trade, 44 Ihs. of 
 
 liuttir, at I'x'. ; 10 doz. okkh, at \U'.\ IH]iaiiHof 
 tlinliunx at .Vi,'. njiair ; r> tiirkcjH, M llis., at 7o. 
 a ill. Cash Hfil-s, ¥l',l Ml, 
 .Nov. -i The I'ropriftor ot tlu^ /Vc' I'rmM lii'oiif^'ht in a l>ill 
 for.'^fl for iiilvcrtisiiii;, Siitlcd with him in lull 
 to date liy ^iviii)^ hiin ."^.'i in ^'oods, l',oiii;lit a mw 
 Btuvu for stoi r ami ^'avn ia imyiiicnt u cliuipiu for 
 ^T). Cash sali's. .'ji.'tli. •.'.-). 
 
 ".') iSold .iamcM .Sills on iii'i'onnt, .'{ j.'iils. viin-(,'ar, at 40c. ; 
 I 111, |,i|i|irr at ;).")L'.; h Hi. niixi'd sjiiri-, ,it4iic.; '_' 
 pairx uliii'kt'iiM, at 45i'. ; .'i Urn. tuii, at 40c'. ('ash 
 Buli'H, .■^.td. ,■) '). 
 
 •_'7 'Sold Willi, iin .lacksoii on ai'i'oiint, 'A hrooins, at .'{Or. ; 
 HiiU.ir. .s| ; I do/, fruit jars, .'it 81. ''>0; - Imttlim 
 jiicklts, ut '_'.")i'.; I liox liiscuits, at 2.">c. ; 1.") Iha, 
 liork, at li'o. Cash Hahs, .s|(i 70. 
 
 •J8 Ui'i'i'ivcd fnun IVtrr iSuott caHh in full of auoouut. 
 i'ash s,il, -1. .SIl.T.'i. 
 
 -9 l)c|io«it(',l ^iso. Hoiigld from a farmer, SO bags of 
 iiotatoi's, ;it fi.'ic, and gave ill jiavmiiit tradu 
 .S|0, l.,ilail,'i! ill tiisll. Cash sales, .S'i.V.SO, 
 
 .'{0 I'aid jii Ti lii'(|Ueiny iiiccptaoi'L' f.ivofof lleiirv lirmii- 
 III,, lid, JUKI. l'.ii,l cU'ik's sal.-iry i^'-'u with cash, 
 r.iid nut for oin- month, !?"J(I, with ilii'i|,ii'. 
 Meiihaiiilisu unsold, Nov. ,'tO, ji I S'JO. 40 ; siiove, etc., 
 S.'KI. 
 
 Oct. -0 N'ou liiuan liusiiiiss invcstinjj !f,"», 000 cash, your jiart- 
 ii*r, .liiliii lli„lj.;i', niM'stin^ .'*ti,'_'(Kl, |'ai,l nut in 
 advance .SIHII. Ucniittcd liank drafLs fur iiivoico 
 I, '2,:!, 4, *!).'.0. I'lish sales, .s|.-.0. II. W. 'Hioiiiii- 
 Hoii pays Ins note No. .">, .■:<>.")(», and interest .•u'lruid, 
 S4li.70. Ilei'i'ived from II. rii,'rnton on aei'oiint. 
 
 /■'ill' t/m /'<i//(iiciiii/ tt'ittixactions K'i'Ui' up iIh' ('<is/t /took ulinifar In f/iat iixrd for Srt //. /)i!po.iif.'< in'>^ to In', 
 VKult' ill. I mi 1(11 iiilri lis nii'h <f'ii/. l.in'iil piii/iii'iili< ori-r •$'■'>, imnff n-ith ilfi/iu'. AH, /xif/ni' nfi^ oj' ini'oiii'H iiuulti 
 fur liiiiik i/rul'l, ir/iii/i roxl 1 /xr ci'iil.Jnr ixcltiimje ; Ixmk ilroj'ts awl r.i'i'haui/e jiiiid irlth I'lo'i/iii'. 
 
 of coal, lioiiLfht for our own use, $•'>. Received 
 from li, \'an Norinaii on account, a hank draft, 
 .?:18().40. Cash s.iles, .*l(i0.4ll. 
 .\t this date close jour Cash Hook, and liring clown 
 the lialance. 
 Met. •-'.■. Uemitteil for invoice No. II, I'J, i:{ and I I, .■?!, I-24.4-2. 
 J5inii.'ht till! lot on which our w.'irelioiisu stunds for 
 ?l(i.n(lO (less .'*4II0 pai'l in advance for rent), p.iid 
 s.iiiie Willi ehei(ue. (M.iiik allowed you to over- 
 •Iriiw your account for a day or twn). Paid water 
 rates. .s!4.(')0. Kiitcred a suit at,'aiii.-t Henry Wilson, 
 dwell .Sound, for anionnt of his account, and 
 heiiL Hivision Court Clerk a ■ lieipie for *'2. "lO as 
 deposit. (Deliit |)iv. Cuiirt Deposit. ) raid.s4.7'> 
 for « iiip and horse hianket, I'.-iid .•neeptance 
 favor of .Sln.in &. .Mason, .s72 40. I'aid fniglit liilLs, 
 SJt). IS. Ca-h s.iles. .s||(i.-J4. 
 I'aid for 1,000 lilauk .statements, .*4.70. Cash Bales, 
 
 «;r.t4..">u. 
 
 IVilaiice ;ind rule up the < 'iisli Hook. 
 
 L'Ci (Jave i). 1). .McColl .s75 for .Milsc. he had jiaid for 
 and now returns on .■iccoiiiit of disat,"'eeiiiint as to 
 (piality. I'aid gas hill. .^Iti. 10; liLicksmith's hill, 
 l:<l.'2.S; ,Tohii Hodge withdraws .'*4.') jier elienuu. 
 Cash >;iles, .'j;llt; 4(1. 
 
 '2'.l .Mortg.'igcd the lot and Avarchouso for .•S'.liOOO, and 
 deposited proceeds (credit Mortgage I'.iyalile). 
 I'aid expense connected tln'rewilli, .sl4..")0. Inter- 
 est on lianlc overdraft, -SI 7-^. (('redit hank s.inic 
 as issue of eliei|ue). Ileceived fnnn It. K. Hayes, 
 a elieque ill full for Ills iiecDuiit, $'100, hut it is 
 8ul>iict to collection charges, 'J.")c. Cash sales, 
 §14'2..")0. Paid \\'. (Jilisoii, hook-keeper, .'>!'2."), on 
 acciiiint of salary. Kceived finin 1 1. |l. Henry, on 
 account, .i?17.-S. I'aid telephone hill, .^IG. Paid 
 telegram, 7'ic. 
 
 31 The hank returns with cancelled I'hcipies, ii.itcs, 
 and acceptanccia jiaid hy them during the month, 
 ^•2,4ti0.40. Paid with cheipies, salaries of clerks 
 and warehouse employees, S(i.>0 (dehit Wages). 
 Cash sales for two days, $304. jVJ, 
 C!lose and halanee the Cash Hook. 
 
 5!7"». Paid 11.(1. Hemp, on ;i'.:couiit, 5!47-.0O, with 
 che(|Ue. Cash sales, ,sl4.'i. 10. 
 
 22 Houu'ht horse and delivery wiiL't'on. harness, etc., 
 .•?L'.'>0 ; I ton haled hay. .s| I ; ."iii hush, oats, at '240. 
 Ueliiitted lor invoice No. "), li. 7. •?()04.70. Paid 
 hliicksmith s lull. .s,"i. |(l. Discounted at the liaiik 
 six notes aggiegal iiig .S'">0('», ,iiid dejiositi d pioceeds 
 less S|'2.(i(l, discount. (Knter the full .■uhouiit of 
 notes on lett I'M'je, ]iroceeilsiii hank column, on the 
 right p.iue, and diseoiinl in the sumlries on the same 
 jia.'c). Ilei'civeil fnim Iliitlir iV ( 'o , ni! aiciint, a 
 haijk draft for .SI 10. lioiit'lit il warehouse for use 
 in hiisiness. Paid s.iino with cliei|iie, '^",;{ii(l. Paid 
 for repairs on waiehoiis,'. .^l."); li.id it, insured for 
 .s| ,(MHI. premiUlii, .S|>."). Leased lotoii w hieli it st.iliils 
 for I, lie year, ,uid ji.iid rent in .•idvance, .^401 1 l>i,ii;.'|it 
 eight siiaicH Canada .Soap ( 'o. .Stock for .^inu per 
 share, p.iid t<amo w ith eheijne. Cash sales. .s|'2'.l..")0, 
 
 '211 ^'ollr partner, John Hodge, withdrew from luisiness 
 .S'2lit, ami you invi-st a, lega,y of Sl,.")00. P.iid 
 freight on invoices .S, 1) and Id, .^47. 00, and remit- 
 ted lor same, .Sl.Il'.iS, 7.'>. Mllectcd asi itleineiit with 
 .S. Cole, at "iiic. on the doU.ir, and nciveil !5'2.'iO 
 cash for a claim of .S.^OO. Iloiight ollice furniture 
 for j!('il.7H. C.ish sales, S| ,'{(). ,s,(l. 
 
 •24 .Sold K. Fiiiler a hill of goods, .?S(;3 7<l, and im^jiaid 
 freight on s.ime, w liich w as charged to his ai'coiint, 
 820 |0. Piought and jiaid for ii safe, !*l.')(l, ami 
 paid fnighl, etc., on same, .$14. l.'i. Paid lull for 
 coal ami wood, .?l'2t). !».">. Paid solicitors' fees, 
 §•27. (>0. T'.iid for ailvertising. :*(>!(. 1."). lieceived a 
 ])ost-oniceoiilerfor.S|."). ()0, from llectiu' Mi'Nish, for 
 interest on Ins note. II. 1). Cook is going out of 
 husiness, and ]irepays his note of ><y,V2, and is allow- 
 ed a discount of !«!P2.70. lieceived from .S. House, 
 $;i(>.40. ill full of account. Sold Peter Smith, I ton 
 

 T.'i 
 
 S.M.KS lUMiK. 
 
 18 pairH of 
 
 12. The Sales Book is uscil tor iiMTcli.itidisc s.iI.-j mi a nmt, iiltliinii.'li Mili'H fnr ciLsli, (Kites, (Imt'ls, 
 
 11>H., ul 7u. 
 
 etc., itu•l^^(lill^' .sliiiuiumls, iiiiiy l)o n'conlrd in it. 'I'im umi of this Imuk nusos timo in |nisiiii;i{, us 1 lift ilfdiifs are 
 
 ;lit ill 11 l>ill 
 
 jmsicd diicct to tlioii' rcs[M'clivi' lu'coiinl s, wliilo tin; )<iliil id' idl tlio sjilcs is ('.iiiii'd t'i»i«iird fniiii |i;il,'i! to |ijiu»' 
 
 liiiii ill lull 
 
 till till) end cd' llii! work m' inmitli, and llicii pnsti-d in out! aimiiitit to llio cfi'dit <d' Nfdso. In |Mi>iiiii^ tVi>m llio 
 
 lllulll. il IH'W 
 
 t clit'iiiiu for 
 
 Salt's I'xKik nitt'i- tliu lidicr " S " iit tlio rxjilaiiatioii nduiiiii nf the I.^*dg<!r and tlio jia^'t; nf tliu Salt's iSndk jn 
 
 
 tht) foliii <'iiliiiiiii. 
 
 iixr, at 40c. ; 
 
 ( 
 
 , ,it4(»i'.; 'J 
 
 13. A i 1< rult'd with tlirro ccdiiiiitis like the one liclnw will ,sci'\tMi-< Ji JiMiriial and at tho sjiiuo liino 
 
 4()c. DaHh 
 
 nrroiiijdi>li all that is tlt'.-,irt'd in till) niatli'f of H Sales I'locik. K\eiy eiiliy wherein .Mdse. is eredited will 
 
 im, at .'<0c. ; 
 
 liivo all tho extensions nr the t'odtinj^ of tlir-ni eariied into the taitrr cohnnn, whilt) all rdlier eirdits will 
 
 ; '_' IhiiH.'S 
 JO. ; 15 ll)a. 
 
 havti their aiiHunit ciiiried into the seeond or iiiiddle folunin, tlm intn r cohinin liein|^ considered the re;,'iilar 
 
 
 dtdiit eoluinn. \l llie end of ;i week or nioiilh the total of the oiiti'r coh.'iin will he curried to tho ilehit siilu 
 
 of iiccouut. 
 
 of Mds(.. • 
 
 rio i(ii),'s of 
 
 MUXl>A Y, J AX. .Jinl, /:>()—. 
 
 IK lit Inidu 
 
 
 
 ,S(). 
 
 
 
 
 
 
 
 
 iUOi 
 
 /(»' 
 
 fiirv liniiii- 
 
 Sale oil 
 
 1-JS 
 
 D. Shepherd 
 
 4tf 
 
 37 
 
 
 
 
 
 with cjvah. 
 
 account 
 
 
 Mdae. 
 
 
 
 
 
 
 Bi|i|(:, 
 
 
 
 'Jttdo/. W'iiet'l, l.mea .■?1.75 
 
 
 i 
 
 
 8r> 
 
 
 stove, etc., 
 
 
 
 l.-.Oll.s. l'.arl)ed Wire .113 
 
 
 1 
 
 
 4 
 
 50 
 
 
 
 
 1 i do/. (>" Scissors 4..'iO §(5.73 
 
 
 
 
 i 
 
 
 
 
 
 Less lo;: .C.S 
 
 
 
 
 1 (> 
 
 07 
 
 are to In', 
 
 
 
 •Jolhs. I'litty .04 
 
 
 
 
 
 
 MO 
 
 )ii-s made 
 
 
 
 No. 2 
 
 
 
 
 
 
 
 Hoci'ivud 
 
 Sale for 
 
 80 
 
 Bills Rec K. L. .Scott 
 
 147 
 
 5U 
 
 
 
 
 
 liotf 
 
 
 Mdse. 
 
 
 1 
 
 
 H7 
 
 50 
 
 iimk >lnifl, 
 
 
 
 Note No. •J(i7, r.. M. 
 
 
 1 
 
 
 
 
 liririj^ down 
 
 Piirt ciwh 
 
 47 
 
 No. 3 
 W. H. Meldnim 
 
 
 1 
 
 
 
 
 , .•?l,l'-'4.1'_'. 
 
 
 
 Mdse. 
 
 
 |i 
 
 
 
 
 st:ill(U for 
 
 
 
 ItiOlhs. White Lead, .'S7.00cwt. 
 
 
 
 
 
 11 
 
 '20 
 
 ifiit), i>,ii(l 
 
 
 
 •Jdll.s. ind Nails, .04 
 
 
 
 
 1 
 
 bO 
 
 11 to OVfl- 
 
 I'.iid w.itii' 
 
 
 
 Cr. lly Cash .■^10. ( '. I'.., pau'e 104 
 
 
 '' 
 
 1 
 
 1 
 
 
 
 
 
 
 
 1 
 
 1 
 
 
 i\ Wilhiiii, 
 
 
 
 No. 4 
 
 
 
 
 
 
 
 oiiMt, and 
 II- >?'_'. 'fl as 
 
 Shi|iiiifiit 
 
 l!f2 
 
 Shipment to A. Boles, Halifax 
 
 '2.50 
 
 
 
 
 
 
 on 1 'oiii. 
 
 
 Mdse. 
 
 
 
 
 
 '2.-)0 
 
 
 I'.'iid .'<4.7."i 
 
 
 
 Kor Irivoic-.s '.'(II) l.l.i.s. Apples r./ 1 •-'5 §250 
 
 
 
 
 
 .■lCCf|)tillH.'0 
 
 
 
 
 
 
 
 ? '. .•: .■' 
 
 :i7 
 
 fight liills, 
 
 
 
 No. 5 
 
 
 
 
 
 
 
 
 V 
 
 Sundries 
 
 '245!t 
 
 !i7 
 
 
 
 
 
 ['a.sli 8fik'S, 
 
 
 M 
 
 Mdse. 
 
 
 • 
 
 LM.".!» 
 
 '.•: 
 
 
 
 
 
 
 For uioiitli's Hides 
 
 
 i 
 
 
 
 
 1 |i.iid for 
 
 No. 1 entry sliows ])ro[)iT form for siili; on aocount. 
 
 tho whole iimount, and will he ereditid in the ('ash P.ook 
 
 iiKiit as to 
 litli's iiiil. 
 
 No. '2 entry is corrtct for salt: wiicrc noto is rt'ot'ived in 
 
 for the part pa\ imnt. 
 
 iniiiH'diato payment. Items are iiniieei.ssary. 
 
 .No. 4 shows an (•ntiy for a shi|pment mi eommissioii. 
 
 r clicMjuu. 
 
 No. 3 shows uu entry iu which the purchaser ia charged for 
 
 No. 5 .sliows entry for » iid of tiic inoutii. 
 
 ,ono, and 
 I'.ival.lc). 
 
 I'dLL HOOKS. 
 
 0. ■iiil.r- 
 
 14. Ill working a set from a text book there an? not a .siitlieif^nt muiiiier ofnotes to make it, wortlt while 
 
 i.ilik s;ilii<! 
 
 . 
 
 K . lliiycs, 
 
 using a 15111 I*>ook as a hook iVom which posting is done, liut in Imsiness it is the usual eustom to didiit the 
 
 l>ut it i.s 
 
 tlrawers of drafts tlirect from tho IJills Payable I'xiok, and it is also customary to post tlio total footings of the 
 
 isli s.di's, 
 , ■■<-">, on 
 
 book to the credit of ]>ills Paya])le account. For Bills Receivable a similar practice is cd'ten followed. In 
 
 lltiuy, on 
 15. Paid 
 
 the sets that follow the pupil may use the Iiiil Jioidvs in that manner if the teacher desires him to do .so, 
 
 
 otherwise he will use them as mere au.xiliaries. 
 
 's, ii.ites, 
 (! iiiontli, 
 of oii^ka 
 
 Vsing a doulile sheet of foolscaj), or opposite pages of an exercise book, rule I'.iU Books witli columns 
 like those at th« top of the next two pages. Use them for Set V. 
 
 \V;ij5t.s). 
 
 
mmmt 
 
 timfmmmmsn 
 
 l;|IJ.S (Hi NoTKS 
 
 - 
 
 
 
 
 I>A 
 
 K 
 
 OK ( 
 
 ilVINd 
 
 
 N 
 
 .1 K. 
 
 lilt 
 
 Aci'Ki' 
 
 riMi 
 
 IMIAKT 
 
 l!MH) 
 
 Jan. 
 
 j M \hK.II nil Ai I H'loll. 
 
 4 1 .M.v.s.ir 
 
 7 
 
 Uraft 
 
 I'AVKK 
 I'KIINnN IS- \V||..SK I'W.lK WIlKliK I 'A V A III. K. 
 
 Dh.iW.v. 
 
 .1. I'. I>;iV 
 
 UruftI '!• I5ii>'t 't <"". 
 
 I»(.in. i;u. 
 
 I'olt WHAT (JIVKN I 
 
 IMIAWKH ll|( Til TIIK I'Klirr I'KIK'KIl 
 
 UK TIIK Act'OI .\r OK, 
 
 KOLID. 
 
 I. «'. I),l> .111 H c. "ll't 
 
 i;. Unit iV ( '(I. (Ill ii.c. I 3lf» 
 
 I'.ILLS OR ^OTES 
 
 ItATK (IK 
 
 Kki K.IVISO 
 
 NoTK OR ItKAVT. 
 
 Nil. I 
 
 I'AVKi:. 
 
 M M>KI( nil .\' ' I llMli. 
 
 I'AVKi:. im A\* !'! oK I>ii\Ki oil roll WHAT IJKCM) , 
 
 l'Kl;.-nS IN WlliiSK I'AVim WllKIti; I'AVAIil.l. KMiiiHsKK hk iMl M l nil (HKI.ir TIIK. I'KI'IIKH 
 
 llllAMV. OH .NiilK. .\loil NT UK. ! '''•"'"'• 
 
 Jan. 
 
 18 
 
 Note 
 
 3i(; n. s.dti i4„^ II. i!iiif(! 
 
 317 
 
 , , Niitc 
 
 1>. DicU n^nu Mysi'lf 
 
 Mil. V,k. 
 St. i;k. 
 
 II. \U 
 
 II. llriRt' III! il c. till 
 It. l>i(k 1111 a .-. :U'.t 
 
 IWOICI-: I'.OOK. 
 
 15. SoiiU' liiiuk-l<('i'|M'r's keep ii 1)1 ink siiiiil;ii' In tlic unc ^Imuii liclow. Tlicy cunsidc;' t luit cxorv iii\(iic(^ pui"- 
 cli.",.s('(l w:is limiLclit. c// n ■■■■^in/, r'/iisci|ui'iil Iv they cicilit tlic iiccmiiits uf I he lii'ins wliiiM' naiiics ajiiic'ir in the 
 colunui iiiario'il "To 'lii> ciiilil, nt'. " I*'i'()iii tlu; Hill I'.Duk, .luuriial m- ('.i^ii l!iM'i< llicy at'tcrvwirds ililiit tlicsr 
 firms t'lir ail |ia\niriils liv noirs, arci'pianci'-;, casii <>i' (liscnmits. .Mmii li!\ , oi- Ics.s (it'lcii, ilirv jmst tla- total 
 footiiiL'^ i>t' the gi'oss ami Mint ot' t lie in . oirc?, to tlio di'liib of Milsc. .\t. t lir saiiir t imc tln'\' post, to t lie cfcilit 
 of inti'ii'st and |)i'<couiit or Mdsc tlu' total footiiij^s of tlic discount-- icrciNcd. If ,i, n ic ,,f u\\ acceptance is 
 civeii and tin; discount, lost, no cntfv is niadc in tlu! colmnn. 
 
 16. As for tli(! iiiN'.icc.s tlicm-cKcs no one c\'ci' ;ittcmpts to rewrite tlieir items. Tlie\- arc jiroperly jlled 
 ri\va\' in indexed illit;g cases, or an; sometimes pasted nn tiie leaves of iilaid'C liooi<. hi I la; .--ets it; I'ractical 
 r.ook kcepiiiif coniiecU'd with this liook the latter method i.s to lie jiractised. The pupil is t hi-re advised to 
 fold tliein ■:[) as letters ar<! folded for enclosing; in a!i envelope, (hi tla; hack of eacii is written the Journal 
 entry from which the jmsting might lie ijcue dir(>ctly to tlu? I.cdu'er. 
 
 .s.\.MrLi': iN\()i("i-: itooK. 
 
 DISC'OC.VT.S. 
 
 I(\IK lil'l'll. 
 
 I'jyO I 
 
 Sept. 
 
 a 
 
 TO TUK CUKIirr oK 
 
 Kate. I Tiriii. 
 
 I lilt i 111;. 
 
 Ainniint. 
 
 I'.ice of 
 liivdire. 
 
 ■Iiilm .\hi(;iloii,al(l ..t < 'a. 
 S. K. MrKiiiiiiiii. 
 Ooidrin, -McKay iV ( o. 
 .•\iiius, Holik'ii k ( 'ii. 
 
 ,"t 
 
 '.i Illo. 
 
 < let, 
 
 1 
 
 .•!0 
 
 
 600 
 
 o 
 
 30 il. 
 
 Sept. 
 
 15 
 
 
 
 40 
 
 r^ '. 
 
 3 inn. 
 
 .Nov. 
 
 1 
 
 !) 
 
 
 ISO 
 
 1 , ^ 
 
 4 iiio. 
 
 Oct. 
 
 15 
 
 21 
 
 
 ;;iio 
 
 SKV \ ii.\Ki)\v.\i;i'. r.\i!'i'M':i;siiii' I!Isini:ss. 
 
 liniih-i -Ji)iiriiii/S(i/i's /liHi/,-^ Ciisk /I- III/,', Inriiv'i' /liiiik, /til'/ /)iio/t mil/ /,ii/i/f'r, ./'iii/iio'ii/.s o/ Oiyr •'>'~> inni/'' 
 irlt/i r/ii'/iii'. Df posits ddi/i/ <>/' a// cus/i, except '$/0. 
 
 Voar I'iiiic, Out., .Tan. 1, Ml(»().—Hii«h Walker and C. Bell 
 liave this diy eiilfi-eil into a co-iiartiiership to con- 
 iluct a fienci'al Irirdware busiiics.s, aiirociiig to .share 
 
 it Murray on aci'onnfc for two invoices, .?(iS(i. ,[. S. 
 
 hriiwii it Sons Mil ;ieci)Uiit, $1,080. ( '. Hell inv('st.s 
 
 cash ci|iial to jiis partluM's iii't' inveHtnic.iit. 
 
 yiiiis 'uid losses e(|iially. Tlicy rent a stmv at •-M,") .i^ii. 2 i'aid niit in ailvaiico to Manli I, !*l(i(). Houf^lit of 
 
 Kiiif,' Street, at S'lO )ier month, in ;iii\. nice, and Hmklcy it Wrl.sh uii aeiM.iiiit, stationery fur olliee 
 
 <!iiij:anc you as l)ook-kec|ier at .?40 jier inontli. Iiiif,'li 
 Walker invtstH as follows) : liesiniroes -('iisli,.*SII(l; 
 tl. McUae's note at (JO days, thie to-day, and to hear 
 interest, at 10 jier arniiiii after maturity, t'oi ."^l.."!!!!). 
 liiirkley >t Chase owe on aicnunt l?4(l. Mdse. as 
 ])er inventory, S7,")00; tiirnitiire .•iiul lixtuies, .'?7.'{0. 
 Li.ihilities — He ours Hanks it I'.ilmer on JLisaeee|it- 
 ance given Deo. 26, at 00 days, ■■^Stid, airl owes liosu 
 
 use. 111 voice No. I, .*I5. 
 
 It I'.onjiht on aceount from the Security Safe and l.oek 
 
 ( 'o., a. safe for oDiee use, .'J.'tOn. 
 4 I5ouj.'ht of Rci, ! & .Murray, invoice No. ti, of ."it: days' 
 
 p.ods, .'?3S(».7"). 
 r> Sold I!. L. Sriitt, Tavlor St., on aceount, 3 dozen 
 
 tuhlo knives, No. i;{7."), ata^o.aO. 
 
IIIVKV , 
 
 l.'t>'» 
 
 3w; 
 
 lAT HKCDl 
 
 l.KI.IIKIl 
 
 ! I'ltuv 
 
 I 
 
 let' .111 ii .-. Ill* 
 
 i (111 ;i .■. .'il'l 
 
 vciy iiiMUco j)Ui'- 
 es ajipfaf in the 
 irds (Irliit; these 
 y |Kist. tll<! totiil 
 .is(, to tln! ei'eilit 
 ;iii ueeejitiiiiee is 
 
 ire ])i'n|ier'ly filed 
 sets i>'. Tract ieal 
 tliei-e advised t.i 
 itteli llu! Jdllliial 
 
 
 l-'nce 
 
 of 
 
 mint. 1 
 
 Inv.ii.'c. 
 
 
 
 000 
 40 
 
 1 ISO 
 
 1 ;ioo 
 
 
 •I- (;/" iinr ■"■<■' mtiih' 
 
 iv.iicfs. .?(iSO. .r. S. 
 ISO. ('. \W\\ i^vt■at.^ 
 
 llVCMtllU'llt. 
 
 1, g!H»0. I^oiililit of 
 8t«tiolU'l'y l.ir nHiue 
 
 iiirity Safe aiul l.<><'U 
 
 eoNr.. '_', <.f .•!< .liiyn' 
 
 on HCCdUIlt, .'{ (loZt'll 
 
 II. 
 
 rAYAJJLE. 
 
 IiATK 
 
 TiMK 
 Ihl.V. T" "IN- 
 
 Year 
 
 
 
 
 WIIKN IH'K. 
 
 
 1 
 
 1 
 Int. 
 Itatc 
 
 r I 
 1, 1 
 
 A.Mm.sT. 
 
 1»ATK OP 
 I'AVMK.NT. 
 
 1 
 
 Year. M.i. 
 
 .Ian. 
 
 Im'1.. 
 
 Mnr. 
 
 Apr. 
 
 Mn.v .liini- .Itil.v Aiii;. 
 
 .Sfp. 
 
 (kt. Nov. 
 
 Dec-, i 
 
 
 llMHI.Iaii. 
 
 «l 44 
 
 4 •_' III... 
 
 7 .'lO.lys. 
 
 j'.IOli 
 
 
 !l 
 
 i 
 
 
 
 i 
 
 i 
 
 
 i 
 
 I 
 
 
 200 
 »IU80 
 
 1<\h. 9 
 
 V.'ii.l in full 
 
 
 
 
 
 
 lUrKIVAI'.I.K. 
 
 
 
 
 
 
 liATK 
 
 Tl M K 
 
 1,,,, T..K,.v. 
 
 i 
 
 
 
 Apr. 
 
 will 
 
 :v DUE. 
 
 
 1 
 
 Int. 
 Itate 
 
 AM.H .ST. 
 
 1 
 
 IlAlK OK 
 I'.WMKM. 
 
 r.M'i, v\ \ rniN. 
 
 Year. .Mo. 
 
 |Vear( 
 
 .Ian. 1 I'Vli. .Mar. 
 
 jMiii'. 
 
 June 1 .luly .\ii(.'. .Sf|i. 
 
 llcl. .\..\. 
 
 1 
 
 
 MXHI.raii. 
 
 :{ (> mil. 
 
 Il9(M! 
 
 i 
 
 
 
 
 
 7 
 
 
 
 
 6°; 
 
 100 
 
 
 ' 
 
 « . it 
 
 Is L' •• 
 
 (t 
 
 
 
 •J! 
 
 
 
 
 
 1 
 
 
 
 
 
 .sit; so 
 
 
 1 
 
 si: I' V. (r,i,iiiiii.:il ). 
 
 ,1.111. Ii .\( cciitcl ,'?0 dins' .1 raft ef llesc iV .Miiii.iv f.ir tiie .l.'in. •_'! iloiiii'il frel') V.'liitlcv ll:ilil\vare ('..., ilivoi.'c N... ',\, 
 
 aiiiimiil 1.1 iiivdicc .No. '.'aii.l luilanccof eld acioiiiit. 
 Sold W. il. iMi'Idniiii, r.axtiT St., en ;uL(iiiiit, 
 I J d.i/iii " Keen "Koytlii'.'(,!?SLr)0 net ; jiaid .Security 
 •Safe an. I Lock C.i. en ;iec(Hinl. .'irriO ; sol. I to * '. W, 
 .iimk.s l'orc.i«li. lS(M)|lin. di' li.nlied wire, at .St'onts, 
 loss 'Jtl ; ; 30 lli.s. imtty, at .S eeiits net ; _'(» His. of 
 filiie, at 'Jrj cents net; T) Him. of .shot, at I 'J.', eeiit..< 
 net; I ddz. ivory taliii knives, .No. 4"jrM(',.*7 7r> net, 
 '.I I'aid .1. S. IJrov.n & Sons on incoiuit, iliei|iie .^."ilM). 
 
 Ill Sol. I 11, I,. Scott onae.ount, (iOd.iys, less;") ' for cash, 
 10 Uis. of ;.'Im.' .it •_';((•.; I do/! .shovels at S!l..')0. 
 W. 11. .M.iiliiiin paid on a.connt. i ash, .*iO. 
 
 II S.ild K. i;.n.lall..ii .-i., .iiint,(;o .i,t.\s, Icss.^'i ', lOdavH, 
 l,,"ill() llis liarlic.l sue, iit ;<i . ; 'J do/, silver s)i()oiis, 
 No. 47."H', .«7.."iO; 2 do/. kiii\cs .iinl forks. No. 
 
 .VJS, at .■?•-'. ."iD ; ^^ il.i/.. te.is|M s, N... 47.'<, at !?». 
 
 I'ai.l .Scciiritv Saf.' it Lock ( o , .'?l.'.")U. 
 
 •JO Casli sales from I I th to the :'0(h, g!Sli!>.40. '{'here 
 wa.san error in the ciiaix'e to Ii. I.. Scott on tin 
 
 S.'i7.">.<)tl, ! '-■ ."i i', tor cash. i'ioii;;lit fr.nii l!o.--e & 
 .Murray, invouc Nd. 4, .S'lT.", 1. ss ,'!, , Itt .I.ins. 
 
 '_'.'{ II. 1.. Sc.itt remitted e.ish in full for amount ..f pur- 
 eliase of the .'"itli, ami cash to e.iver )iiirchasi' tof 
 the loth, less/;/ oIl.r.Ml. (Sc 'JOtli al.so). 
 
 •_'4 lluL'li Walker witli.lrew for priv.-ile use per clnipie, 
 .s'JiiO. licceiv 1(1 from \V. II. .M.hliuni !J<-J.7."i. 
 
 '_'."i I'.iiil f or u typewriter for use of Imsiiiess, ■'?7."). 
 
 •Ji) i;>iinttMl a hank draft to NN'hith y llanhvaic <'(>., 
 Ill full for invoiic .No. ,'!, less cash disrount. Ivx- 
 chanj.'!' i , .111(1 r. initl.il to l!osc iV .Murra\ .i hank 
 draft for !:<."iOO, cash discount allowed on part paid 
 at .'{ . .Sold I'.Mckley & ('hiisi> on aciMiuul. '.tOO 
 lli.s. of l>arlied V ire. at Jtc. ; 4U llis. .No. .*i shot, at 
 lie.; (ido/. jiovv.lcr tiasks .No. 7.'1. at S^.'i.-.'i ; V.' .lo/,. 
 coal scultl.s at .•<7 ."lO. 
 
 .SO ("ash sales from 'Jilth to the jiresent date, i?,Sl(;..SO. 
 I'iiy \ our own salary with ehe(|ne. Slo. 
 I'ost >(iiir hool.s and j.'it a 'trial lialance. 'Ilic lii\ iiit..ru'H 
 
 lOtlliiisl. He should li.ivu heeii chargeil with Ml ! 'in-. M.lse. .'*7.s!((i. I'"iirnituri; ami I'ixtures, §1 ,(l.'iO 
 llis. of No. ."> shot (./ Vli\ and .', do/ ^hoV(■ls 
 
 !*!l..'iO, in addition to I lie other charges. 
 
 I'l-. pai(^ a Statement and el.isc ac.(iiinl.s. 
 
 ' Paid cash for .'» ton;, of co.il, .^.'iO. 
 
 •J Sold W. H. Meliiriini on a.counl. ."iO days, le- . !? 
 
 per cent, for cash, ItiO Ihs of while l.a.l i.:. <7 
 
 per ewt. ; 'JO llis. lOd nails at 4.'. 
 .'{ Cash sales for .'{ days, !ft;!(ir>,7-. •'. A. « '.mm;! .:rii 
 
 has ciini|ileted some Wdik in li.\iii;{ s.i. '\ ; and 
 
 chaniii-it,' partition ; liied his hill for same. .rid. 40 
 
 (credit his account ). 
 ."i ItoiiL'lit ot I'.anks k I'.dimi. inv. No. .'i. ?.">(!. I'ai.l 
 
 the .s.iiiK! immediately with che(|iie. 
 (• .Sold to |l. Sliepp.ir.l , r> .111/. "Keen" sevthes at 
 
 J«S.."i(); ."i do/, doc collars. No 7'J4, .*.">.40 ; |0 ,-..ll'ee 
 
 millH, \.i. ,S((, .*) 'Jo. iteccive.l his note at (10 
 
 day.s in immediate jiaymeiit. 
 8 iSold I!. !.. Scott, oil a.'collllt. ;{0 days, less .'{ Jier 
 
 cent, for j'ash, [, do/. IT) inch monkey wreiiclieH 
 
 at JfIS ; '2.') Ihs. putty at 4e. Ile.iivcd from \V. 
 
 M. Meldriim, cash for sale of 'Jml iiist , less disct. 
 
 (Jave.l. A. ( ockliiiiii an order f.ir f!l0 40on V.. 
 
 Kundall, wliicli the latter has ftureed to accept. 
 !• Sold I). Sheiipard, on account, "JO do/, win- cloth. ■« 
 
 lines .1.1 i?l.7.'>, I.'O llis of harht'd wire .at ;ic. ; 1 
 
 (I.I/. (■> ill. h. scissors at .'?l,.")0. 
 Jii Hoiiu'litof A. 11. IJaird, on account, HO days, less .H 
 
 per cent., inv. No. (i, .«!7'). Itemitted d. S 
 
 I'li-own & Sons bank draft in full of account. 
 
 Ilv. h.inj.;e 1 ]ier cent. Cash saleH to date, §44.'!. 
 
 Fell. I'J Houjiht of Itose X: Murray, on acconiil. .'to .i.iys. Icsh 
 :i , inv. No. 7. •'?>l 4<i] 
 l.'f I>. > Sheph.i.l ]iaiil for |ini'rhase . f 'Itli iii 'nil Ic.s.s 
 .ll-i iiillit h\ ^'iviliu' liie .^irs. ( hristie's ( he(ple for 
 
 .?7.'>. an. I I i:avc him cash to halance. I'aid A. 
 
 II. r-aird for le-- of lOth iiist. l.ss ;{ ji. r cent. 
 
 disi'.iiiiit. I'.u. K it Chaise pai.l .* 10 oil ;icet. 
 Ill C. liell took froii. ui.rc for own use, •_' ju'allon 
 
 sprinkler, .'{."ic. ; lifoolil. 'J."ic. 
 17 I'.x.'iianp 'I typewriter and j;ave ?!.") for dillerrnco 
 
 III valutiof .a new one. Cash s.lles to date. .S."»IO. 
 I',) lliMnunted ;i< li.iiik at 7 |ier cent. I ». SIm pherd'H 
 
 note and (h po-ite.| pr.iceeds. 
 'JO A.'cepte.l l.'ose \ .Murray's draft for ii^.'iOj nt .'(0 
 
 days, in full of .ocoiint ,1. .Mcliae jiaid his p;i«t 
 
 due note and inti rest in full to dale 
 •JI Cash sales to dale, .S4|i;. 10 ; iioui/ht of .\ II IViird, 
 
 on .iccount, inv. No. .s, i*l7.'>.70. 
 •J» I'aid cash f,.rinv. No. !>,(? I ,'(.'.. 
 •J.l I'aid A. II, I'.air.l .'«i7.">.70 on iicciuint and pass. .1 to 
 
 !oin my ii.ite at .'lO .la\.s for!*lfin 
 'J.S I'aid for p.iiiitiiij,' front of stoic, .*."> ; cash •laleH 
 
 ?.'!7.").40 I'ay your own s.-daiy with clie.|Ue, $40. 
 
 'I'lie liank p.'ii.l acceptance of .'<SliO, favor. 'f KniikH 
 
 it I'.ilmer, whi.'ll inatllled Keh 'I'l. 
 Post and p't a Trial lialance ; vlosi! ho.iks .ami |ii'epart! a 
 Stutenieiit. The Inventories are: .Merchandise. $(;..'14(i 'J/5. 
 Kurnitiire and fixtures, $1,0(0. 
 
■iMan 
 
 CHAPTER VII. 
 
 SI.\(iLE KNTIJY. 
 
 1. Every (rollcctioii of luomorarid.i not intended to proflnce a Trial I'alanee i^ tjenerally called Single Entry 
 I»ook keejiiiig. If a man is aide I'eadily to tell tlic dales and items of wliat others owe iiim on account, and 
 to clieck the dates, itcuns and anmnnl.s of what others say htj owes tiiem ou account, ho has accomphsiicd all 
 that is really intended hy Single Kntry. 
 
 2. i'>ii' in addil ion t.() this simiiie lecfird, most Singlo Entry book-keepers have, At least, a iiillllook for 15ills 
 Payable, .so that tliey may know when their notes come due in order to provide a sufficient bank deposit to 
 meet them at matuiiiy. In a business involving the carrying of a great many customers' notes, it will bo 
 iibsolutciy essent ial to have a liills Iteceivaljlt; Hook, in oidei- to waicli due dates and not if v endorsers. These 
 IJill I'xioks ai(> not dilleriMt, from those sliown on jiag'-s 7t) and "7, l)Ul any special set of colunuiH may l)e 
 used instead of llios(» givr^i. Further, it is usually customai-y to keep a Cash 15ook to show the receipts and 
 till! expiMiditin'e of the money of the business. 
 
 THE DAY I'.ODK. 
 
 3. I lie records that an; to bo posted are entered in a I )ay Hook. The book itself does not difl'er in form or 
 ruling from a .lournal, but the mciliod of writing the entries is es.sentially ditlerent from that emj)loyed in a 
 J)ouble Kntry .Journal. In the latter systt-m, above, b'-fore or a,ssociated wiih the exj)lanation, must be 
 wiilliMi the names of the \;dues exihanged ; in Single Knliy the names of the values exchanged is a matter 
 of no concern. Above the ixplanation is s((t down the name of the peisou or iirnt with whom we are con- 
 ducting the ti'an.saction. a?ul after the name is I'ccorded tlu^ fact whethei- he is a debtor or a creditor. Tf a 
 person buy.s anythii:g from us on account, or if we pay another' jterson on acco. nit, both are debtors. If 
 we buy anythingfrom a firm on account, it is a creditor ; if ;i man pays us anything on account, he is also a 
 creditor. r>ut. if we buy anyihing and ]i,iy for it with cash, if we settle for it at once %\ ilh a 7iote; if we 
 sell goods under similar conditions, if we }iay our notes, if others pay their notes to us, if we pay for interest 
 or I'cnt, if others ])ay us for .similar things, if we pay for expenses or freight, if we deposit money or issue 
 clieijiirs. w c ;irc not, to make entries in the l>;iy Book, becau.se such transactions lead to no <lnltls on account 
 \»'\\\\i coutracticl or- p;iid either in our f;i\i>r or against ns. 
 
 4. SojiM' bii-.ine-s men considrr tlieiiisrjvcs debtors for all siiins of money or all merchandise withdrawn 
 from the business fi»r private usc, and on oci'asions of witlidiviwal make l)ay liook entries showing thtMnsehcs 
 
 as dclitor; 
 tl 
 
 iems<'l\<'s .as ( 
 
 anil sinct! they consider themselves as debtors for such ti'ansactions, they in lik(? manner rcc'ord 
 reditors for the net amount <jf their investment when tliev begin business. 
 ( )ii I lie next page \\(> show the opening "iitiy made by < i. 1!. Ir\ ing, upon beginning business ou .Jan. 2nd, 
 liJOO. I'uiilier down on the Jiage, we show a niihiber of tvjiical Single Entry transactions properly recorded. 
 
 TliK LKIKIKI!. 
 5. The ruling of a Single. Kntry Ledger is the same as that of a Double Entry Ledger, and the columns are 
 UM'd tor the same purpose. There is so little difl'erence between the work of posting oni a Day j'.ook and a 
 
 r, that the pupil wTl reipiire practically no instruction 
 
 Those names that have " Di'." following' Iheii 
 
 lol 
 
 iav(; t he aiiioun 
 
 t f. 
 
 lund 111 the second or outer column o 
 
 f the Dav J! 
 
 transferre«l to the debit «ide 
 
 of the Ledger page, together with date and page of oi'iginal entry. Those with "C'r." after the name are to 
 ha\(! posting entiies made in the l.,edger account on tin; ciedit side in lik(! manner. An entiy like No. 'J on 
 the lower part of the next page is to bo posted to liolh debit and credit of Kenry I'rown's account. 
 
 6. ^iiiee there ai'o only debtors and creditors recorded in (he l)ay liook, and since Cash, iMer'chaiidise, 
 ExjM'tise, I'.ills I'.ivable, etc., are only things, ,ind cannot bo debtors or creditor's, we will ha\e no accounts in 
 the Ledger bearing these titles. The Ledger is (le\(»led exclusively to Personal accounts and Stock. 
 
 7. Accounts are rul(>d oil' and balanced when the side', ar't; eipial, but otherwise (hei'e is no closing to be 
 doi.e ex(!ej)t that once per year tiio proprietor may add Lis net gain to his Stock account, balance it and bring 
 il'/wn the Present Worth, as he would for the sani': account in a Double Kntry Ledger. 
 
 jj. The jiiipil will, of cour'se, observe Muit a Tri;il Palance is impossible. 
 
^■tjtmt i*- '-M*-. 
 
 natiMi» 
 
 79 
 
 lo. J on 
 
 tVff to l>o 
 unl briny 
 
 HEATH DALE, Jan. iJvd, 1000, 
 
 I (a. R. IrriiKj) th'tM day rtymmettred hushietJi iu <i (/f,i- 
 enil siting investing an j oil own : 
 
 Resources 
 
 Stock of tjood.i fHirchased /¥v,m /). A. Xewton for r,ts/i. 
 
 Furniture (i)if/ Jixfnrrs of the st<w> fnirchaserl tfith stf-k, 
 
 Cash in safe, 
 
 Cash on 'h'posit in Dominion Bank, d'uelph, 
 
 D. L. Egan on-in ni<- on aeconnt, 
 
 Liabilities. 
 
 Notfs anil aci-iptancps of D. A. Xewton accepted ami as- 
 sumed ItlJ nil' an per list, 
 
 I oh-e Ihnry F<ni)''s for mark done in store, changing 
 shelves, etc. 
 
 36 
 
 97 
 9n 
 
 Xet /'resent Worth, 
 
 G. R. Irving" 
 
 Jig Set Investment, 
 
 G. L. Egan 
 
 7'm /i((/a7ice (f accotmt, 
 
 Brfurj Forbes 
 
 /-a' balance <f account, 
 
 Or. 
 Dr. 
 Or. 
 
 2000 
 
 
 200 
 
 
 38 
 
 
 380 
 
 
 16 
 
 rr. 
 
 650 
 
 
 20 
 
 25 
 
 
 
 
 1 
 
 2631 
 
 670 
 
 1964 
 
 1964 
 16 
 
 20 
 
 25 
 
 50 
 50 
 
 75 
 
 MONDAY, May Ut, 1900. 
 
 69 I Wm. Graham 
 
 i To 4 rolls III' Hal tirii,', 
 
 ' " S yds. Print, 
 
 '•1^ Henry Brown (i)erWife) 
 
 'l(> 3 yds. Lacp, 
 " 10^ v<ls. Cirpct. 
 '« 2.V ' '• T.ihie Linen, 
 
 64 
 
 Bv S Il)s. .pf liiitt.-r, 
 '' 10 do/. Eggs, 
 
 Cr. 
 
 28 
 
 Dr. 
 
 .12^ 
 .10 
 
 Dr. 
 
 .08 
 .50 
 .40 
 
 .15 
 .12 
 
 Cr. 
 
 dl of acH'ount, 
 
 Mrs. S. Lisgar Cr. 
 
 r.y halunco on Dutter and Eggs, for wliicii due 1)111 
 was given, 
 
 Hunter & Co, (Jr. 
 
 Ily iiivoiii' of lioots and Shoes, 
 
 L. K. Holmes, Park St. 
 
 V>\ easli in full of aeeount, 
 
 
 50 
 
 i 
 
 
 
 80 
 
 I 
 
 30 
 
 
 24 
 
 
 
 n 
 
 00 
 
 
 
 I 
 
 00 , 
 
 G 
 
 24 
 
 1 
 
 20 
 
 
 
 I 
 
 20 
 
 •) 
 10 
 
 40 
 
 
 
 3 
 
 15 
 
 
 
 68 
 
 10 
 
 9. The dating of a S. E. i )ay Hook is done in the same manner as a T). E. .Tournal, See page 30. 
 
 10. in the al)ove page note the use of the columns. The left or margin is used for Ledger pa-<s ; tlio 
 left money column is used for itera.s of extension, tho right one i.s used for the footings in totals of the sjuue. 
 
 11. Observe the "To" accompiinying "Dr." and the " Tly " necompanying ''Vv:' 
 
 ^■■mt -'/k.vmtmM^&mgi'mimin 
 
7^ 
 
 so 
 
 CASH IJOOK. 
 
 12. If ft CinIi I'xii'k is ki'|ii. iKj p(»,stiiig i'l'Diii it i.'5 to \>('. done, tliiTi't'iiic no cava is taken to writi* acfount 
 ni'iiiios ; so lon<^ us a full explanation is given, an entry is coniiilete. It will be seen that cash received an<l 
 cash paid out are not put on separate pages. The tirsi, or left money eohnnn, collects the amounts rccei\e(|, 
 tlie second the amounts paid out. Heceipts liave ''Trt" precciding tho e.\{>lan;ition, and written close against 
 tlio date column: payments li;iv(\ " i»y " pr'eceding them, and \vritt,eii an inch away from the date. This 
 book may i)c closed and lialanccd, as shown, once; per day, (jnc(* per week, or as often as desired. 
 
 CAS// /lOOK. 
 
 Dr. 
 
 Cr. 
 
 Jan. 
 
 (I 
 
 It 
 
 „■' I '/'<< ii nil III III III. Kii/i', nircsfi'il 
 
 .1 A'// i:.r/)r)i,si''< i/ni III/ to (liirljili 
 
 .', '' ffi'nilil jiiiiil ml, i/nniis 
 
 .1 To i/'ii/'s rusk ,s(i/i'H 
 
 '/ /ii/ iiniiiil liiiiiiilif lit' Wi'titmnn 
 
 ,'i " pii,s/(ii/i' .•i/mii/ix 
 
 '/ I'll iliii/ a rush, sairs 
 
 ■') /iij Jiilni /liirlur, xiiicinij wood 
 
 ') Tit ilaijs Clink suit's 
 
 >i /iij (virrrtisiiiij 
 
 Ii Tit ilil 11 s riisll sil/i'S 
 
 l! j '' ff'. /.. /ujdii. (III. urcount 
 * ]>}/ lia/itiiri' 
 
 38 
 
 
 1.3 
 
 rr, 
 
 PI 
 
 so 
 
 /.T 
 
 .'S 
 
 
 / -J 
 
 105 
 
 r.8 
 
 '.>! 
 
 !>8 
 
 1 
 
 8 
 
 JO 
 ■ !■') 
 
 :,o 
 
 *<u 
 
 10.: 
 
 98 
 
 j.y 
 
 I '/'() liiiliiiirr 
 
 SET VI. 
 
 Ilnolcs tn lir HSi'if — /Jui/ Boo/,:, Cfin/t JJoo/c, TiiU lionltS, /.nliji f. 
 
 iSanuu-'l I)erliy jin-^enls to you a statement of his alFairs, find reipiests you to take a one-half interest in 
 his grocery busine.ss, by investing cash ciiual to his net present worth. You invest $1,557 cash, and agree 
 to shan^ gains or losses e(pially. lie nas l)een keeping his books by Single I'jitiy, and conse((uently can oidy 
 sIkjw vou his llesources, l.iabiliiies ami Net (Jain, which are as follows:- - 
 
 Kroni 
 Fiivuntorica. 
 
 Casti Iioi)l(. 
 
 Ilk. I'llSH II. 
 
 RESOURCES. 
 
 / Merchandist> 
 
 1 Store Fixtures and Furniture 
 
 (.'ash in safe 
 
 1 K'posited in .Merchants I'ank 
 
 1200 
 
 'Ja 
 
 t5D GO 
 
 280 
 
 1910 
 253 
 
 40 
 4u 
 
 \ 
 
 
 •lohn Lees osves on account 
 
 ()5 27 
 
 
 I..Hl-..r, 
 
 (^)ueen's iFolel ow(>s on ai'count 
 
 137 25 
 
 
 
 Sullivan's Ilcstaurant owes: on account 
 
 Tot:d 
 
 G3 28 
 
 
 
 UAIULTTTES. 
 
 ( .1. Perkins iV (.'o., on account 
 
 172 
 
 
 lje<lKfr. 
 Bill noolt. 
 
 1 Sloan it Taylor, on acccunt 
 
 Lively k So!i, on note due in .'iO d 
 
 Total 
 
 42 
 
 3'J 40 
 
 i 
 
 
 
 
 
 *l*rest!ut worth . 
 
 Investment of 6 months ago 
 
 *Xet L'ain 
 
 
 
 Ledjvt'r. 
 
 1557 
 1000 
 
 
 
 
 557 
 
 
 
 
 
 
 
»S^*33SSmS3k 
 
 STSmSSuSSSSBw 
 
 81 
 
 Jiil,\ 1 lleccivcd fidiii II. 1 >;i\ iilsiiii, jin iiixnico i>f j^'ooils, 
 terms ,"(( days, '2 U<v (ash, .*.■)!(. .'lO. Sales to lie 
 clmij,'i;il from ciimitci'dit'ck i/duk: - Mrs. .Mc( 'artliy, 
 sugar, .SI, '2.') U). sack of (lour, .*l. '_'."), ;{ llis. ((illVc 
 ((/ 'Aiic. Henry (irieve, su;,'.ir 'tOc. ',i saek.s Hour (a 
 .^l.'i"), 2 (loz. vji'^a ((' !.")(•., '.i eaiis tomatoes for L'.'ic 
 Sullivau'.s Itestiuiraiit, 'A doz. canned ccjni Qi Ddc. 
 Sales for cash, *'4().'J8. 
 •_' lleeeived froni.Idlm Lees oti aceount, 815, and liisnote 
 at o U! montli for li.ilaiui'. Paid niontii's rent wit li 
 casii, $.'!(). hc|iosiied in the liank impirs invest- 
 ment. I'aid casii for criamery butter, ST.oO. Ke- 
 ceived checiuc in full of account from l^>uicii s Hoti 1. 
 
 .S Sales to 1)0 charged: Win. Waugh, 'J His. liutterfc 
 '28c., 1'2 boxes berries (ii; 8c. Cash sales, .STli.hO. 
 
 3 Received a che((ue from J. Sullivan, to balance 
 
 account to didy Nt. Sent J. Perkins & Co. a 
 che<|ue in full of aecouiif, less '2 ' for cash. Iloiight 
 a hors(! and delivery waggon, .'J'23."). Cash sales to- 
 day, .*,J8.4U. 
 
 4 Sales to be charged : Sullivan's Itestaurant, 1 bbl. 
 
 gran, sugar, .'{(((> lbs. net, (o Si.'M) {ler cwt. , 1") llis. 
 cotl'ec @ •24c., '2 cans honey. '20 llis., (a Klc, 15 llis. 
 creamery butter (n '2.Sc., 1'2 boxes berries (a 8o. 
 Henry (irieve, 8 Uis. raisins («; Oc, 3 pair chickens 
 (<i Goc, I doz. bananas, '20c. Cash sales, .?72.()5. 
 
 5 Dejxisitod S250. Sale to be charged : (^)ueen's Hotel, 
 
 1 bbl. Hour, !i?5.00, 15 lbs. S.C . bacon r.' I6c., I doz. 
 
 cans H.irdines, .•?!.. "lO, I case eggs, 'M'> do/, di I5e, 
 i'.iid forcreainery butter,.*'.*. 1(1. ( ash sales. .<>">(>. 4H. 
 uly () lleeeived invoice of goods from Collins it (o.. net In 
 •lays, .•«!7S.(!(t. Cash sales to-day, $li!».SO. l>e- 
 posited .■<I'J5. 
 
 8 Aceejited Sloan it Taylor's draft at (ifl ilays, for 
 amount of account, ><i-. Sales to be ch.'irged : Miss 
 Cook, 1 lb. comb honey, 15c., 5 lbs ham (n 15c,, 3 
 bunches celery («' 5c.. I lb. collie, .'{tie. Mrs. Mc- 
 ( 'artliy, 3 loaves of bread (n 5c., 2 doz. eggs (n 15c., 
 5 lbs. 'butter (n •2Sc. ( 'ash sales. .«i!47.S(i. 
 
 it Remit ted clu(|iie to H. Pavulson, in full lor invoice 
 of 1st inst., less 2 . Paid for horse keeji, ,'?3..")ti. 
 I'aid cash for freiulit bills, .■!!4.2!». ( ash sal. s,.'?2!I.S(t. 
 
 10 lleeeived invoii<: of goods froi;i I, Pcrknis iV ( 'o. , 
 
 .'J27I.30, terms 2 inoiitlis, 3 for cash. Cash sales, 
 .«4(i.!t(l. 
 
 11 lleeeived from Sloan & T.iylor, an invoice of goods, 
 
 8m5.(i0, U'lins '2 months, 3 for ea-h. I'eiiosited 
 S^IOO. Sale to be charged : Sulliv.in's Ilesiaurant. 
 12 bunches celery, Jidc. , 5 bunches liananaa (n 
 ?l.5(), 1 box, 10 lbs., S. bi.scuit.s (.' (ic, 2 bush, 
 new potatoes (a 75c. Cash .sales, .*47.20. 
 
 12 Paid freight bills, §14.75. Sale to be charged : 
 
 t^ueen's Hotel, i'O lbs lard Oi lOc, 1 box laundry 
 soap, .?4.50. Cash sales, .•?4.'t.'20. 
 
 13 Cash sales, $(52. .30. Keposited .'i<125. 
 
 15 lleeeived cheipies in full of account from Sullivan's 
 llestaurant anil (ihieeii's Hotel. Cash sales, !<;{'.<. 00. 
 Deposited .'i!l25. 
 
 ■).3 4(t 
 
 ir)57 
 1000 
 
 
 <'ILVN(;iN<! I'HoM Sl\(;r.E to Dori'.LK KXTKY. 
 
 ir.'iviiig ,1 kiKiwledae of Dimhlc l^iitry, your partiior roinie.'^ts you to cliuiii;*' tlio Imoks to tliut system. 
 
 13. Bill Books. — Your I'ill I'ook.s will ro(|uiic no cliiiugo. 
 
 14. Cash Book. — Vou will use a Cash Hook similar to tliat you used in Set TV. I'ulc ami clnsc your 
 S. jv Cash JJook, and carry tlio halance to the left Jia^o of tht^ new one. 
 
 15. Bank BeIeIICG. — If y<iu were in actual htisiiiess you could ascertain your hank halance from the 
 hank clerk.s, hut since you arc not, you must t,'o over the transact inns of S(a V 1, juid mai^e a Hst of ( 1 ) your part- 
 ner's (jriginal deposit, (2) the deposit of your investment, and (.'5) all snhseiiuent depo.sits ; tola! them and from 
 tlu,' sum take the total of all cheques i.ssued. Enter thi.s amount on the two pages of th(> new 1),K. ( 'ash I'lonk. 
 
 16. Journal and Ledger.- Ynur M.K. Uay Hook can he used as a Journal Ledger; ymir Ledger, and 
 the accounts it at present contains, will he (|iiite satisfactory, hut there ai-e some new acniunts lu he o]iene<l 
 
 17. Preparing a Statement. — Hefore the work (an lie properly started, you must jirepare a new state 
 ment. Wc; give you tiie imeiitnries helow, and from them, ymir Lodger, Cash liook, Hank Halance and Hill 
 Hooks, prepare a Statement of Ue.sourees and Liahilities .similar to that on the last page, excejit tliat fruin the 
 difference hetweeii Resources and Liahilities you must suhtract the comhiiied ainniint of the investments of 
 your jiartner and yourself to get the net gtiin, and ynu must divide the latter into two eipial parts. 
 
 fitvenforif'n, Jn.ly 15th. — MifKf., •$l,0').'i.44- Iforsp and Wagijon, $230. Furtiituro mul I'i.itiivs, .$'.).'>. 
 Rent jm'ul in advance, $I-'i. 
 
 18. Closing Partner's Stock Accounts. Cany one-lialf the net gain to the credit side of your own 
 stock account. Write on tiie d<d)it side in rod ink, "Present ^V(lrlh," and an amount that will make the 
 accouiit halance. Rule ofV and carry down the halance in hlack on the credit side. Treat your partner's 
 accoiuit in .a similar manner. 
 
 19. Opening Journal Entry. — Write an entry in the Journal setting forth that you have changed the 
 books from Single in Houhle Liitry. Under that set down the Resources as per Staleuient, using proper 
 
^mmmi 
 
 nsRii 
 
 Lodgor titles or acconnt names for each. Tliese ^Resources are to })0 the (lcl)its of tlio .Journal entry, so sot 
 Ihcin ilnso to tlio folio coliiinii and put the amounts of t^ach in tiio first column beneath, and about ono inch 
 anil a-half to the right set down the Liabilities as the credits of the Journal entry, and as additional credits 
 set down i/(,iii' oii'ii name Stock and Samuel ])erby Stock, and after each in the credit column put the amount 
 you carried down in black ink. When you close the Stock accounts your Journal entry should balance. 
 
 20. Posting. — Put check marks in the ff)lio column opposite the personal accounts, the two Stock 
 accounts, Cash and Hank. Tlien open accounts for each of the other Jicdger titles appearing in the entry, and 
 post to lilt! proper side the correct amount for each. 
 
 21. Trial Balpnce. — Take a Trial lialauce of the Ledger as it now stands, and if it proves, you nuiy 
 proceed with the f(jllowing transactions: 
 
 ^•AT VI— (Continued— Double Entry). 
 J 
 
 July Hi liiciiviMl iiivoioe from I. rcrkins & Co., .$l4t».90, 
 tcriius SO <iiiy8, loss 2% for cash, and sunilar one 
 from U. Davidson for 5il65.;-{0. liuniitted ch('(|ue 
 to Collins it <"o. for invoice of (ith inst. Paid 
 frcigiit with chi'<pie, $IG..SU. Samuel l)tri>y with- 
 dri'W cash, $15, and jou withdraw §■<;"). I'aid 
 Sloanc A Taylor per chctjue, amount of invoice of 
 llth. less S?/ for cash. JSales to be chargcul : Mrs. 
 (Jreen, 1 sack of llour, §1.25, 3 11)8. Ceylon tea 
 (ii 5(lc., I basket lilue-berries, 7.5c., I bottle vanilla 
 i.\tia<l, .SOc. Queen's Hotel, '20 Ibii. butter ^, iiSc, 
 1(H) lbs. powdeied su)j;ar, .*4.75 cwt., 25 1!)8. prunes 
 (a tic, i chest Y. H. tea Ca 45c. Cash sales, .?4r),.*{0. 
 17 Sales to bo charged : Mrs. McCarthy, 2 lbs. \. H. 
 tca((' 70c., 1 do/., tea plates, $1.25, I bush, potatoes, 
 7."»c. .folia Roberts, 'A brooms (a •J5c. , 1 wash tub, 
 $1,4 bars soap 0> 15c. Cash sales, $3t).85. 
 
 uly 18 Hought new show case for cash, $40. I'aid for 
 eiianging shilves, $1.75. Sales to bo charged: 
 S. T. Hennessey, 1 can corn beef, 25c., 2 bottles 
 ])ickles ((f 15c., 1 can baking powder, -'5c. Sulli- 
 van's Uestaurant, 4 caus lobsters (a 25c., li bottles 
 salad dressing (" 30c., 1 basket berries, $1.50. 
 t;ash sales, $35. (iO. 
 
 19 Paid cash for farm produce, $7-25. Sales to be 
 
 charged: A. C. Falls, 211)8. butter (<r 28c., 1 lb. 
 cotlee (u .Wc, 1 sack salt, lOc. Cash sales, $42.8!». 
 
 20 Paid per chetiuefor wrap]iiug paper and bags, $10.40. 
 
 Sales to be charged : .Sirs. (Ireeii, 1 bu.sh. potatcios, 
 75c., 2 lamp chimneys (a} 8c.. 1 gal. coal oil, 20c. 
 1 can salmon, 20c. i). C Harris, 3 lbs. dates @! 
 10c. , 2 Uis. mixed camly Oj, 10c. , 1 sack flour, 
 $1.25, ^ lb. baking powder (oi oOc. Cash sales, 
 $42.95. 
 
 Po.--t the above, balance the cash book and make out accounts for all your customers. 
 
 M.VKINO OUT ACCOUNTS. 
 
 22. Soe statement of account No. 1 - n page 6, and from your Ledger turti to the various l)ay Book 
 Entries and \vri\u up the items in a iimilar manner. 
 
 Write the 1>mV Book for the following transactions ; post to the Ijcdger and make tiut accounts for each 
 of the customers (ail sales on account). 
 
 .Mai I Sold J. H. Junif.r, 1 set doulilo hirncss, $.S0, 1 pair 
 . halters, $1.75. 
 ;{ Soldll. H. Ilod^'son, 1 silvtr-plai. ftingle harnes.'<,$35. 
 
 4 Sold 1> W . I'aterson, 1 pair of breast straps, $1, and 
 
 2 bami' straps (a' 25c. each. 
 
 5 Sol<l C. D. Cameron, 1 pair collars, $7, and F. S. 
 
 Cooper, 4 bridles (^ $1.75, 1 pair uiartiugals, $1, 
 aii.l 1 halter, 8.'ic. 
 
 7 Sdid S N. Newton, 1 set single harness, $1(5, 1 breast 
 
 (■(illar, $175. and H. Dunbar, I saddle, $15. 
 
 8 Sold C". Hcniiing, 1 lirass-iilated single harness, $30. 
 10 Solil II. S. Hutchison, 1 set single harnes.i, $lt), 
 
 2 jiair collars, .*7 pair, 1 pair halters, $175, 1 pair 
 tugs. ^4. 
 
 12 Sold C. N. Field, 1 set brass-plated harness, $38, 
 
 I pair lireast-olhii's, $,5. 50, I Ttair martiiigals, $!. 
 
 13 Snid A. li. I'.iton, 1 single harness, $22. .1. H. 
 
 •Iiinior, I halter strap, 35c., ait<i mended tug, 15c. 
 
 15 Sold C. t) ilanuiay, 1 pair L-oUars, $5, 1 pair breast- 
 straps, ?<l. 
 
 17 Sold H. li. Hodgson, 1 valise, ^S, and I bridle, $1.50. 
 
 Sol I J. H. Junior, 1 pair blind bridles, $4, 3 hame 
 
 stra;is, 15c., I throatlateh, 12c. Sold John Little. 
 
 1 single harness, $18. 
 Mar. 21 Uepaired harness for O. N. Field, $3.75. Sold A. 
 
 C. Maynard 1 trunk, .$4.50. 
 25 Cleaned harness for H. B. Hodgson, $2. .50. Re- 
 paired it, $1.88. Sold him 1 halter, 8.">c. Sol(' 
 
 T. N. Franks set of Eilver-plated harness, $42 ; 
 
 saddle and bridle, $23; and I pair halters, $1.50. 
 20 Repaired harness for S. N. Newton, $2.38. t'overed 
 
 (lash of his buggy, $3..')0. Bought of R. S. 
 
 Hutchi.'!Oi\. 1 wash tub, $1.25 ; 3 pails, 3()c. each. 
 
 Sold T. (!. Barton, I set harness, $20. A. B. 
 
 Paton paid me on account $10. 
 29 Bought from I). \V. Paterson, 10 doz. eggs at 12c. 
 
 Sold C. D. (Cameron, 1 brass-|>lated harness at $30. 
 
 Sold C. N. Field, I pair martiiigals, $1, 3 hame 
 
 straps, !5e. ; 1 rein strap, 30c. 
 31 Repaired harness for J. 11. .Junior, $1, and sold him 
 
 1 jiair tugs, $4, and 1 pair <lo. at $3. Sold R. S. 
 
 Hutchison, I brass-plated Cladstoue harness, $25. 
 
i.T i,~ 
 
 ^rr (T 
 
 so sot 
 
 INDEX 
 
 1 
 
 '2.-> 
 7(> 
 8 
 .4 
 (>(> 
 01 > 
 7.S 
 4!) 
 <"? 
 ~>H 
 80 
 
 Paoi 
 
 Acceptance 8, 15 
 
 AccoiiitiKf.liitioii I'liper I'J, 13 
 
 AuuouiitH, >!iikiiig out 8*2 
 
 Accounts, t liming 4!», 50, 08 
 
 Accounts, ( 'liisMificntion ... o."} 
 
 Account Sali's. . 1,7 
 
 Balance of balances 54 
 
 Balance Slicut 55 
 
 Jknk Atxount 57, 06, 73 
 
 I5ankH, Dealing witii 20 
 
 liaiik Draft " 
 
 Barter 
 
 Bill Books 
 
 Bill of Exchange 
 
 Bills 1 
 
 Bills Payable ;{3, 
 
 Bills Keceival>le ,3,3, 
 
 (.'ash Account 3;j, 00, 
 
 Cash Account, Closing 
 
 Cash Book, F). K 70, 71, 7'_', 
 
 Cash Di.scounts 
 
 Cash Book, S.E 
 
 Cosh .Journal " 1 . 
 
 Certiliuil (Jhe(iuc IS, 
 
 Chattels 03, 
 
 Checjues 8, 
 
 Ciphers 
 
 Classiticalion of Accounts 
 
 Closing (,'ash Books 7'2, 
 
 Collateral Security 
 
 (Jolleciion and Kxchange 03, 
 
 Consignments . , 
 
 Corrections 
 
 Ci'c lit Note 
 
 Dating Journal 
 
 Day Book 77, 
 
 Days of (irace 
 
 Dejjosit Receipt 8, 
 
 Deposit Slip I, 
 
 Doulile Entry 
 
 Drafts 8, 14, \r,, 10, 
 
 Drafts for Collection 00, 01, 
 
 Draft.s, Time . 00, 
 
 Due Bill 8, 
 
 Kntries 32, 34, .38, 31), 
 
 Express Money ( )r!ler 
 
 Extensions ami Footings 
 
 Filing Invoices 4, 
 
 Financial St.iteineut 
 
 •J I 
 
 08 
 
 IS 
 
 38 
 
 53 
 
 80 
 «(•> 
 
 OS 
 
 o:t 
 
 ;;s 
 
 4 
 31) 
 78 
 10 
 24 
 24 
 31 
 17 
 02 
 01 
 
 41 
 21 
 4 
 70 
 53 
 
 I'AUR 
 
 Fractional part of a Cent .38 
 
 Fieighi 58 
 
 Fuiniture ami Fixtures 03, OS 
 
 Indexing Ledger 50 
 
 Imlorsenient 13 
 
 Interest and Discount 59 
 
 Inventories 53 
 
 Invoice of Shipment 7 
 
 Invoice Book 7(? 
 
 .lournali/ing Suggestions : 57 
 
 Liabilities .53 
 
 Lieu Notes 12 
 
 Loss and ( iain <>2. ii.'{ 
 
 J^oxs and Cain, Closing 50 
 
 Maturity 
 
 Merchandise 
 
 .Mdse., ( 'losing .... 
 Note, Postal .... 
 
 Notes, Kinds 
 
 Notes, Wording of. 
 Opening IJitries. . . 
 Opening ( 'a.sli Book^ 
 
 Pass Pjook . , , 
 
 Payments 
 
 Posting. 
 
 9 
 
 . .. 58 
 .. . 50 
 . . . . 21 
 .... 10 
 
 10 
 30, .37, 7!) 
 . . 7-'. 73 
 . . 20, 23 
 
 i\2 
 . . . 45 
 
 Po.-^ting from Cash Book. . . 
 Posting from Sales Hook. . . 
 Posting from Invoice Book. 
 
 Promissory Note 
 
 Iieoeii>t.s 
 
 Bed-Black Entries 
 
 Hesources 
 
 Renewals 
 
 Rulnig Accounts , 
 
 Sales Book , 
 
 Savings Bank , 
 
 Shi])miaits 
 
 Single Entry 
 
 Single Entry (.'ash Book. . , 
 Single Entry to Double. . . 
 Statement 
 
 73 
 
 75 
 
 70 
 
 8, I), 10, 11, 12 
 
 1,-'. .'J 
 
 06 
 
 53 
 
 61 
 
 49 
 
 48, 
 
 Statement, S. E 
 
 Stock Account 3.'!, .'ii'), 
 
 Stock, Closing 
 
 Trial Balance 
 
 Voucher 
 
 Values 
 
 Withdrawal Cheque. 
 
 to 
 "2 
 03 
 78 
 80 
 81 
 53 
 SO 
 t>0 
 ^•) 
 48 
 1 
 25 
 23