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 MANUAL 
 
 OF 
 
 Practical Book-keeping 
 
 BY 
 
 R. GOLTMAN 
 
 Principal Metropolitan Business College, Editor 
 
 AND Publisher of the *' Up-to-date Guide," 
 
 "Stenographer's Companion," 
 
 and *'The Office Paper." 
 
 Montreal : 
 1899 
 
A/A Ji3 5 
 
 1960 
 
 Q A TM f) N 
 
 v, fi, 
 
 ^- .„ Art ot Ibe ratliament of Canada, to the ysar one tliomand eight 
 
 ■'""rnnTa S lt;.nl by « G0.™.», Montre... In .he 0«c, o, .he M,n»«r o, 
 
 Agriculture. 
 
CONTKNTS 
 
 PAGE 
 
 Bookkeeping 5 
 
 General Principles 7 
 
 Record of Transactions, Set I 8 
 
 Day-Book or Sales-Book • 9 
 
 Day-Book or Sales-Book, reasons for 9 
 
 Invoice-Book or Purchase-Book lo 
 
 Invoice-Book or Purchase-Book, remarks on , 11 
 
 Journal 11 
 
 Journal, remarks on 11 
 
 Cash-Book 12 
 
 Cash-Book, remarks on 12 
 
 Bill Book 14 
 
 Bill-Book, remarks on 16 
 
 Stock or Inventory-Book 16 
 
 Stock or Inventory-Book, remarks on 16 
 
 Index to Ledger 17 
 
 Ledger (before closing) 19 
 
 Ledger (after closing). 24 
 
 Ledger, remarks on 30 
 
 Trial Balance 31 
 
 Time Book 32 
 
 Set II 34 
 
 Set III 35 
 
 Set IV 36 
 
 Set V 
 
 — • 37 
 
 Sets VI, VII and VIII 39 
 
 Business forms , .. 44 
 
 Commercial words and phrases 48 
 
 Business Maxims 57 
 
PREFACE 
 
 N constructing this work the author has endeavored to 
 present a course of instruction in book-keeping not only 
 thoroughly practical, but as simple, brief and clear as 
 possible, which is needed at the present day to save time 
 
 and labor. 
 
 Another unique feature of this book is that full explanations 
 on the Day-Book, Journal. Cash, etc., are given. In short, the 
 aim has been to make this subject extremely easy for the student 
 to master. 
 
/ 
 
 BOOK-KEEPING. 
 
 The object of book-keeping is to exhibit a distinct and correct 
 state of one's affairs, and to enable companies, firms ana in- 
 dividuals in trade, or otherwise occupied, to ascertain at any time 
 the nature and extent of their business, the amount of their profits 
 or available income, or, as the case may be, the extent of their 
 losses. 
 
 To those engaged in trade or commercial pursuits book-keep- 
 ing is absolutely necessary, as by it all transactions should be 
 regulated and their results exhibited. The more simple the system 
 the better ; but care must be taken that the plan adopted is 
 sufficiently compreliensive and explanatory to satisfy not only the 
 person keeping the books but those who may have occasion to refer 
 to them ; for, however satisfactory it may be to a trader to follow a 
 system which is intelligible to himself alone, circumstances might 
 arise to render the inspection of others necessary, and from their 
 inability to follow out transactions in the books, suspicions would 
 probably be engendered for which there was no real foundation. 
 Hence, the necessity for the adoption of certain recognized and 
 approved systems, which, being plain and easily understood, must 
 prove satisfactory to all concerned. 
 
 Book-keeping, when conducted upon sound principles, is in- 
 valuable ; it not only shows the general result of a commercial 
 career, but admits of analysis by which the success or failure, the 
 value or utter worthlessness of its component parts, or each parti- 
 cular transaction, can be easily ascertained. In a word, on the 
 one hand it promotes order, regularity, fair dealing and honour- 
 able enterprise ; on the other, it defeats dishonesty and preserves 
 the integrity of the man when dealing with his fellows. 
 ' It would b° difficult and perhaps of little importance to trace 
 the origin of b ,v.ft:-keeping. It was certainly known to the an- 
 cients; and Cicero seems to have had bill transactions between 
 Rome and Athens when he arranged for his son's education with- 
 out the necessity of having to remit money, which infers some kind 
 of book-keeping. Kelly, however, who wrote on the subject in 
 
i8o5, asserts, and it is not disputed, that a friar named Lucas di 
 Borgo, whose work on Algebra was the first to appear in print, was 
 the first to write a treatise upon book-keeping, and this was pub- 
 lished at Venice in 1495. 
 
 This work was followed by many others possessing consider- 
 able merit, but so complex as to make them useless. After a time, 
 the mercantile community became alive to the fact that a practical 
 system would be preferable to the theoretical suggestions of writers 
 who were utterly ignorant of commercial matters, and men more or 
 less connected with trade began to write on the subject. 
 
 There are two recognized systems of bookkeeping, namely, 
 ** single entry " and " double entry." 
 
 Single Entry. — This system is denoted by its name, transac- 
 tions being posted singly or only once in the ledger. Three books 
 are generally kept — the cash-book, day-book and ledger. 
 
 Double Entry. — It is now universally admitted that this 
 system is the best adapied for heavy, responsible or speculative 
 trades, for foreign trade especially, and for extensive mercantile 
 concerns. As its name implies, it so far differs from the system 
 already described that every transaction must be recorded doubly 
 in the ledger, that is, entries are transferred to accounts opened in 
 the ledger; all goods sold on credit are charged against the 
 customers, and what are purchased are carried to the credit of 
 parties supplying them. In the same way, when cash is received 
 from a customer for goods sold on credit, it is posted to his 
 account, and the reverse entry is made when a trader pays for th° 
 goods he has bought. Thus it will be seen that only personal 
 accounts are entered in the ledger. 
 
 The advantages of double entry are many : — (i) Unless the 
 debit balances exactly correspond with the credits, the books are 
 wrong, and the error must be discovered by comparison ; (2) The 
 discovery of such errors is more easily accomplished than in any 
 other system; (3) Accounts can be readily analyzed, and (4) Tne 
 profit or loss on distinct transactions can be ascertained without 
 difficulty. 
 
 With a thorough knowledge of the art, however, and that pa- 
 tience and perseverance so essential to the calling of a book-keeper, 
 the gravest impediments are overcome and everything becomes 
 simple and plain. 
 
T 
 
 GKNERAL PRINCIPLES. 
 
 — I 
 
 The person or persons investing in the business should be 
 credited and debited for what they draw from the business. 
 
 All merchandise purchased should he debited for what it cost 
 and credited for its sales. 
 
 — 3 — 
 
 Bills receivable account should be debited for all notes re- 
 ceived from customers, acceptances and other written obligations 
 when they become ours, and credited when they are paid or other- 
 wise disposed of. 
 
 — 4 — 
 
 Bills payable account shoula be credited with notes given by 
 the concern, acceptances or other written promises, and debited 
 when they are paid. 
 
 — 5 — 
 
 Persons who owe the concern for merchandise or otherwise 
 
 must be debited, and credited when they pay their indebtedness. 
 
 — 6 — 
 
 When Me purchase merchandise or otherwise on credit, the 
 creditor or creditors should be credited, and debited when we pay 
 them. 
 
 — 7 — 
 
 The expense account is always debited for all expenses of 
 
 whatever name. As we do not realize anything on expenses in 
 carrying on the businfss it is a loss, and is therefore credited with 
 the total amount of the expenditure, using the term *' By Profit & 
 Loss," debiting the " Profit & Loss Account" for the full sum. 
 
 — 8 — 
 
 If we debit one account, we must credit another so as to 
 make the debits and credits balance. 
 
 — 9 — 
 
 The " Profit & Loss Account " must be debited for all losses 
 made by the concern, and credited for its |)rofits or gains. 
 
 The Cash Account is debited for all money received and 
 credited for money paid out. 
 
8 
 
 1899. 
 Jan. 
 
 (( 
 
 « 
 
 « 
 
 (( 
 (( 
 
 (( 
 
 (( 
 
 (( 
 
 o 
 
 RECORD OF TRANSACTIONS. 
 Set I. 
 
 1 — R. Smith commenced business with a ca<^h capital of 
 $6,000. 
 
 2— Bought of E. R. Stewart, for cash, 100 bbls. flour at 
 
 88. 
 3— Sold W. E. Brown on account 20 bbls. flour at 68.50 
 
 4 — Bought on our note, at 80 days, of C, S. Brown, 20. 
 pieces calico at $3, 10 pieces figured silks, at S9. 
 
 5— Sold E. C. Wilson, for cash, 30 bbls. flour, at ?8.25. 
 
 6 — Paid cash for a set of books for use of store, $15. 
 
 7 — Bought of E. P. Davis, for cash, 200 bbls. Genessee 
 
 flour at $g ; paid drayage on same, in cash, $3. 
 10— Sold H. A. Dawson on his note, at 30 days, 100 bbls. 
 Genessee flour at $9.50. 
 
 12 — Sold W. H. I ewis, for cash, 10 pieces calico at $3.75. 
 
 15 — Paid cash for repairing store, $15. 
 
 16 — Bought of J. D. Simpson, on account, 50 pieces Mer- 
 rimac prints at $5. 
 
 17 — Sold R. C. Robinson an account 25 pieces Merrimac 
 prints at $5.35. 
 
 20 — Sold R. W. Shaw, for cash, 50 bbls. Genessee flour at 
 $9.50. 
 
 21 — Received cash, in full, of W. E. Brown's account. 
 
 22 — Paid J. D. Simpson cash on account, $100. 
 
 25 — Paid clerk hire in full to February ist, $50. 
 
 27 — Sold E. B. Smith, on account, 50 bbls. Genessee flour 
 
 at $10. 
 29— Received cash on account of E. B, Smith, $250,. 
 
 31— Paid store rent in cash, $100. 
 
 
9 
 
 DAY-BOOK OR SALES-BOOK. 
 
 January 3RD, 1899. 
 
 V W. E, Brown, 
 
 London, Ont. 
 20 bbls. Flour at 88.50. ^170 00 
 
 . 5 
 
 V A E. C. Wilson, 
 
 \/ 30 bbls. Flour at 88.25 247 50 
 
 10 .„ 
 
 V H. A. Dawson, 
 
 Ottawa, Ont. 
 
 100 bbls. XX Flour at 89.50 95O 00 
 
 Note 3U days. 
 
 12 . 
 
 V A VV. H. Lewis, 
 
 Apy Hull, Que. 
 'Y^^ 10 pieces Calico at 83.75 37 50 
 
 . 17 
 
 V R. C. Robinson, 
 
 City. 
 25 pieces Prints at $5.35 133 75 
 
 20 
 
 AR/" Quebec. 
 \y 50 bbls XX Flour at 89.50 475 00 
 
 27 
 
 V E. B. Smith, 
 
 Levis, Que. 
 50 bbls. XX Flour at 810 500 00 
 
 82,513 75 
 DAY-BOOK OR SALES-BOOK. 
 
 Merchandise sold on credit and for cash should be entered in 
 the Day-Book for the following reasons : — 
 
 (1) It shows the total amount of your sales during the month 
 or year. 
 
 (2) When a customer instructs the concern to again send him 
 the same goods as he ordered on a certain date, full details of such 
 order can be found in this book. 
 
V 
 
 10 
 
 (3) Often a purchaser requests a duplicate invoice long [after 
 the receipt of the goods. 
 
 Those not marked " Paid" are to be charged, i.e., accounts 
 have to be opened in the Ledger for each. Before doing so, how- 
 ever, they must be entered in the Journal, making the check-mark 
 (V) in red ink opposite the entry, immediately upon its being 
 journalized never before. 
 
 The " Paid " ones being Cash Sales are put on the debit side 
 of the Cash-Book, using the term " To Mdse." It is also neces- 
 sary to make the same check-mark as soon as the entry is made 
 in the Cash-Book. 
 
 INVOICE-BOOK OR PURCHASE-BOOK. 
 
 London, Ont., Jan. 2nd, 1899. 
 
 Mr. R. Smith, 
 
 Montreal. 
 
 Bought of E. R. Stewart. 
 
 Terms : Cash 
 
 100 bbls. Flour at $8 S800 00 
 
 Ottawa, Ont., Jan, 4th, 1899. 
 
 Mr. R. Smith, 
 
 Montreal. 
 
 To C. S. Brown, Dr. 
 Terms : Note 30 days. 
 20 Pieces Calico at «3 S60 00 
 
 10 *' Silks at $9 90 00 
 
 $150 00 
 
 Hull, Que., Jan. 7th, 1899. 
 
 Mr. R. Smith, 
 
 Montreal. 
 
 In account with E. P. Davis. 
 
 Terms : Cash. 
 
 200 bbls. XX Flour at $9. Sl,800 00 
 
 Freight ^ ^^ 
 
 ^ ^ - ei,803 00 
 
 Toronto, Jan. 16th, 1899. 
 
 Mr. R. Smith, 
 
 To J. D. Simpson, Dr. 
 
 Terms : 6 months. 
 
 50 Pieces M. Prints at $5 $250^ 
 
 13,003 00 
 
11 
 
 INVOICE OR PURCHASE-BOOK. 
 
 All invoices for merchandise purchased by the business are 
 pasted in this book. Those not marked " Paid " are to be entered 
 in the Journal to be posted to the Ledger (Transferring to the 
 Ledger is called " posting "). 
 
 The " Paid " ones are placed on the credit side of the Cash 
 Book, using the expression " By Mdse." 
 
 The check-mark (V) must also be made opposite each invoice 
 with a blue pencil as soon as the amount is entered in the Journal 
 or Cash Book. 
 
 The Invoice Book shows the total amount of the Concern's 
 purchases during the month or >ear as well as the cost of the goods. 
 
 Ledger 
 Folio. 
 
 19 
 
 19 
 
 19 
 20 
 
 JOURNAL. 
 January 3rd, 1899. 
 
 20 
 19 
 
 19 
 21 
 
 21 
 
 19 
 
 22 
 19 
 
 W. E. Brown, 
 To Mdse. 
 
 Mdse. 
 To Bills Payable 
 
 10 
 
 Bills Receivable 
 
 To Mdse. 
 
 16 
 
 Mdse. 
 To J. D. Simpson 
 
 17 
 
 R. C. Robinson 
 To Mdse. 
 
 2T 
 
 E. B. Smith, 
 
 To Mdse. 
 
 $170 00 
 
 150 00 
 
 950 00 
 
 250 00 
 
 133 75 
 
 500 00 
 
 S170 00 
 
 150 oa 
 
 950 00 
 
 250 00 
 
 133 7^ 
 
 500 oa 
 
 THE JOURNAL. 
 
 The Journal is used ibr the purpose of arranging the debits 
 and credits for entry in the Ledger. If the transactions are pro- 
 perly journalized the labor of posting is simply mechanical. 
 
 (See "General Principles"). 
 
CASH- 
 JANUARY, 
 
 DR. 
 
 
 
 Ledger 
 folfo. 
 
 
 January 1 
 
 To R. Smith 
 
 Investment 
 
 22 
 
 6000.00 
 
 '* 5 
 
 '' Mdse. 
 
 
 19 
 
 247.50 
 
 " 12 
 
 <( (( 
 
 
 19 
 
 37.50 
 
 *' 20 
 
 (( <( 
 
 
 19 
 
 475.00 
 
 '' 21 
 
 " W. E. Brown 
 
 
 19 
 
 170.00 
 
 " 29 
 
 " E. B. Smith 
 
 
 22 
 
 250.00 
 
 
 
 
 23 
 
 7180 
 
 Feb, 1 To balance on hand. 
 
 $4297 
 
 THE CASH BOOK. 
 
 The Cash book should be debited for all cash received and 
 credited for all disbursements. 
 
 On the 1st of January R. Smith, the owner or proprietor, 
 started with or invested in the business a net capital of $6,000, 
 which is placed on the debit side as cash received for carrying on 
 the business, and is placed to his credit as will be shown in the 
 Ledger. 
 
 When money is paid out which is not for merchandise an 
 account called " Expense" is opened. On the 6th, 15th, 25th and 
 31st cash was expended for books, repairing store, clerk hire and 
 store rent, and as these are expenses in connection with the busi- 
 ness they are entered in the " Expense " account. (See Ledger). 
 
 Cash sales were made on the 5th, 12th and 20th which are 
 placed to the debit side using the expression, ** To Mdse,," an 
 abbrevation for merchandise. Money that is paid for merchandise 
 as soon as purchased is entered on the credit side, employing the 
 words "By Mdse." As will be seen, cash was paid out for mer- 
 chandise on the 2nd and 7th of the month amounting to $800 and 
 
IB 
 
 BOOK. 
 
 
 
 
 
 1899. • 
 
 
 
 
 
 
 
 Ledger CB. 
 folio. 
 
 January 2 
 
 By Mdse. 
 
 
 19 
 
 $ 800.00 
 
 " 6 
 
 " Expense 
 
 Set of Books 
 
 23 
 
 15.00 
 
 H 7 
 
 " Mdse. 
 
 
 19 
 
 1803.00 
 
 " 15 
 
 " Expense 
 
 Rep'ing. Store 
 
 23 
 
 15.00 
 
 " 22 
 
 " J. D. Simpson 
 
 
 21 
 
 100.00 
 
 " 25 
 
 " Expense 
 
 Clerk Hire 
 
 23 
 
 50.00 
 
 " 31 
 
 " Expense 
 By balance 
 
 Store Rent 
 
 23 
 
 23 
 
 100.00 
 
 January 31 
 
 $2883.00 
 ..4297 00 
 
 
 
 
 
 7180 
 
 $1,803 respectively, which, of course, must be credited as refer- 
 red to. 
 
 As the student is aware, W. E. Brown |boiight $170 worth of 
 flour on the 3rd of January and was charged for same. On the 
 2ist he pays the total amount of his invoice and is debited in this 
 book, being cash received and credited to his account to balance. 
 
 E. B. Smith purchased flour on the 27th to the value of $500. 
 and on the 29th pays half the sum, which is also placed to the left 
 side of cash and credit of E. B. Smith's account, leaving a balance 
 of $250 which he still owes the concern. 
 
 On the 16th prints were bought from J. D. Simpson for $250, 
 and on the 22nd the amount of $100 was paid him on account, 
 which is put to the credit of cash as money paid out and debit of 
 his account, leaving a balance still owing him of $150. 
 
 (" On Account " is an expression used in business which 
 signifies that a part of the indebtedness is paid). 
 
 During the month the total receipts in cash were $7,180 and 
 the amount paid out $2,883, leaving a balance on hand 1st 
 February of $4,297. (See Cash Account in Ledger). 
 
r 
 
 14 
 
 BILLS 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 When 
 Received. 
 
 Drawer or 
 Endorser. 
 
 E.aweeor 
 Maker. 
 
 In Whose 
 Favor. 
 
 Where 
 Payable. , 
 
 • 
 
 DATE. 
 
 No. 
 
 Month. 
 
 Year. 
 
 I 
 
 Jan. 
 
 10 
 
 
 H.A. Dawson 
 
 Our 
 
 
 Jan. 
 
 10 
 
 1899 
 
 BILLS 
 
 
 Whpn 
 
 Drawer or 
 Endorser. 
 
 Drawee or 
 Maker. 
 
 In Whose 
 Favor. 
 
 Where 
 Payable. 
 
 DATE. 
 
 No. 
 
 Given. 
 
 Month. 
 
 Year. 
 
 1 
 
 Jan. 
 
 4 
 
 • 
 
 R. Smith 
 
 C. S. Brown 
 
 
 Jan. 
 
 4 
 
 1899 
 
15 
 
 RECEIVABLE. 
 
 
 WHEN DUE. 
 
 i 
 
 
 
 WHEN AND HOW 
 DISPOSED OF 
 
 Time 
 
 TO KUN. 
 
 Year. 
 
 
 10 
 13 
 
 i 
 
 1 
 
 t 
 
 « 
 
 « 
 
 s 
 s 
 
 
 do 
 
 •< 
 
 Q. 
 
 4^ 
 
 > 
 
 o 
 
 1 
 
 AworxT. 
 
 30 days 
 
 1899 
 
 
 950 
 
 1 
 
 
 i 
 
 PAYABLE. 
 
 
 WHEN DUE. 
 
 « 
 
 
 
 WHEN AND HOW 
 DISPOSED OF 
 
 Time 
 TO Rvs. 
 
 Year. 
 
 i 
 
 4 
 
 7 
 
 
 1 
 S 
 
 
 
 ® 
 
 S 
 
 -5 
 
 < 
 
 
 
 o 
 
 
 Amount. 
 
 30 days 
 
 1899 
 
 
 150 
 
 
 
t I 
 
 It) 
 
 THE BILL BOOK. 
 
 The Bill book is used for the purpose of recording in a form 
 convenient for reference the particulars of written obligations 
 which we receive trom others and which others receive from us. 
 It is divided into two parts. All notes or other written obligations 
 received are entered in the Bills Rtceivable, and all notes, drafts 
 or other written obligations given by the concern are entered in 
 the Bills Payable. 
 
 STOCK OR INVENTORY BOOK. 
 
 Jan. 2, 100 bbls. flour at $8 $800 
 
 " 4, 20 pieces calico at $3 $60 
 
 10 " silks at $9 90 150 
 
 " 7, 200 bbls. XX flour at $9 1,800 
 
 " 16, 50 pieces M. prints at $5.. 250 
 
 $3,000 
 
 If the student will refer to the Day-Book and deduct from the 
 above the number of barrels of flour, pieces of calico, silks and 
 prints sold, the merchandise remaining unsold on Jan. 31st will be 
 as follows : 
 
 50 bbls. flour at $10 $500 
 
 10 pieces calico at $3 30 
 
 25 " prints at $5. 125 
 
 10 " silks at $9 90 
 
 $745 
 
 It will be observed that on Jan. 2nd the flour cost $8, and on 
 
 the 7th $9 on account of one being of superior quality. The 50 
 
 barrels remaining unsold are estimated at $10 per barrel, being 
 
 the market value on the 31st January. The calico, prints and 
 
 silks, however, have not increased or decreased in value since they 
 
 were purchased. 
 
 THE STOCK BOOK. 
 
 The Stock book is kept for the pur{)ose of showing the exact 
 quantity of merchandise on hand and its cost price. When the 
 concern takes an inventory of goods unsold at the end of the year 
 or at any time it is called *' Taking Stock." 
 
17 
 
 INDEX TO LEDGER. 
 
 F 
 
 B 
 
 c 
 
 H 
 
 D 
 
 I J 
 
 r/e/ioe :^\S 
 
 K 
 
18 
 
 INDEX TO LEDGER. 
 
 L 
 
 R 
 
 M 
 
 s 
 
 N 
 
 T 
 
 
 
 U V w 
 
 P Q 
 
 X Y Z 
 
ly 
 
 I^EOGKR BEFORK CLOSING. 
 
 Dr. 
 
 W. E. BROWN. 
 
 Cash or 
 
 Journal 
 
 folio. 
 
 Cr. 
 
 1899 
 
 Jan. 
 
 Cash or 
 
 Journal 
 
 folio. 
 
 To Mdse 
 
 11 
 
 170 
 
 00 
 
 1899 j 
 Jan. 21 
 
 By Cash 
 
 12 
 
 170 
 
 00 
 
 Dr. 
 
 MERCHANDISE. 
 
 Cr. 
 
 181)9 
 Jan, 
 
 
 4 
 
 7 
 16 
 
 To Cash 
 " Bills Pay. 
 " Cash 
 " J, Simpson 
 
 13 
 
 I] 
 13 
 
 11 
 
 800 
 
 150 
 
 '803 
 
 ';50 
 
 00 
 00 
 00 
 00 
 
 1899 
 Ja: 
 
 By VV. Brown 
 
 .., " Cash 
 lOj " Bills Rec. 
 " Cash 
 "R.Robinson 
 '' Cash 
 " E. Smith 
 
 121 
 
 17i 
 201 
 
 27! 
 
 11 
 12 
 11 
 12 
 11 
 12 
 11 
 
 i7o;oo 
 
 247!;)0 
 950 00 
 37150 
 133175 
 47500 
 50000 
 
Dr. 
 
 m 
 
 BILLS PAYABLE. 
 
 1899 
 Jan. 
 
 By Mdse 
 
 11 
 
 150 
 
 Cr. 
 00 
 
 Dr. 
 
 BILLS RECEIVABLE. 
 
 1899 1 
 Jan. 10 
 
 To Mdse 
 
 11 
 
 950 00 
 
 Cr. 
 
Cr. 
 
 50 
 
 00 
 
 Dr. 
 
 TBSy 
 
 Jan. 
 
 22 
 
 To Cash 
 
 21 
 
 J. D. snrpscN 
 
 13 
 
 100 00 
 
 1B99 
 Jan. 
 
 16' 
 
 By Mdse 
 
 Cf<. 
 
 11 
 
 250 00 
 
 Cr. 
 
 Dr. 
 
 1899 
 Jan. 
 
 17 
 
 To Mdse 
 
 R. C. ROBINSON. 
 
 11 
 
 133 
 
 75 
 
 Cr. 
 
Dr. 
 
 E. B. SMITH. 
 
 Cr. 
 
 Jan. 
 
 27 
 
 To Mdse 
 
 11 
 
 600 
 
 00 
 
 1899 
 Jan. 
 
 29 
 
 By Cash 
 
 12 
 
 250 
 
 00 
 
 Dr. 
 
 R. SMITH. 
 
 Cr. 
 
 1899 
 Jan. 
 
 By Cash 
 
 12 
 
 6000 
 
 00 
 
00 
 
 Dr. 
 
 Jan. 
 
 6 
 15 
 2n 
 31 
 
 To Cash 
 
 K (( 
 
 23 
 
 EXPENSE. 
 
 13 
 
 i;{ 
 
 13 
 13 
 
 15 
 
 15 
 
 50 
 
 100 
 
 00 
 00 
 00 
 00 
 
 Cr. 
 
 00 
 
 Dr. 
 
 1899 
 Jan. 
 
 31 
 
 To Cash 
 
 CASH. 
 
 12 
 
 7180 
 
 00 
 
 1899 
 Jan. 
 
 31 
 
 By Cash 
 
 Cr. 
 
 13 
 
 2883 
 
 00 
 
 iM 
 
24 
 
 LKDGER AFTTER CLOSING. 
 
 Dr. 
 
 1899 
 Jan. 
 
 W. E. BROWN. 
 
 Cash or 
 
 elournal 
 
 folio. 
 
 Fo Mdse 
 
 C.'isli or 
 
 (Journal 
 
 folio. 
 
 11 
 
 170 
 
 00 
 
 Jan. 
 
 1 
 1 
 
 21 
 
 By Cash 
 
 12 
 
 Cr 
 
 170 
 
 00 
 
 Dr. 
 
 MERCHANDISE. 
 
 Cr. 
 
 1899 
 
 
 
 
 
 
 lyyy 
 
 
 
 1 
 
 
 Jan. 
 
 2 
 
 To Cash 
 
 13 
 
 800 
 
 00 
 
 Jan. 
 
 3 
 
 By W. Brown 
 
 ll'l 170 
 
 00 
 
 
 4 
 
 " Bills Pay. 
 
 11 
 
 150 
 
 00 
 
 
 5 
 
 " Cash 
 
 12 
 
 247 
 
 50 
 
 
 7 
 
 «' Cash 
 
 13 
 
 1803 
 
 OO 
 
 
 10 
 
 " Bills Rec. 
 
 11 
 
 950 
 
 00 
 
 
 16 
 
 " J. Simpson 
 
 11 
 
 250 
 
 00 
 
 
 12 
 
 « Cash 
 
 12 
 
 37 
 
 50 
 
 
 31 
 
 " P. & L. 
 
 
 255 
 
 75 
 
 
 17 
 
 20 
 27 
 
 "R.Robinson 
 " Cash 
 " E. Smith 
 
 11 
 12 
 11 
 
 133 
 475 
 
 500 
 
 75 
 
 00 
 00 
 
 
 1 
 
 ^/-^^""^ 
 
 
 3258 
 745 
 
 1 
 1 
 
 
 31 
 
 " Stock 
 
 
 745 
 3258 
 
 00 
 
 
 To Stock 
 
 75 
 
 Feb. 
 
 
? 
 
 Dr. 
 
 25 
 BILLS PAYABLE. 
 
 Cr. 
 
 I 
 
 Dr. 
 
 BILLS RECEIVABLE. 
 
 75 
 
 Cr. 
 
Dr. 
 
 TOT 
 
 Jan. 
 
 oo 
 
 To Cash 
 
 20 
 J. D. SIMPSON. 
 
 13 
 
 100 
 
 00 
 
 1899 
 
 Jan. 
 
 IG 
 
 Bv Mdse 
 
 Cr. 
 
 11 
 
 250,00 
 
 Dr. 
 
 1899 
 Jan. 1.7 
 
 R. C. ROBINSON. 
 
 Cr. 
 
Dr. 
 
 21; 
 
 E. B. SMITH. 
 
 1899 1 
 
 Jan. |2Y 
 
 To Mdse 
 
 11 
 
 500 
 
 00 
 
 1899 
 Jan. 
 
 29 
 
 By Cash 
 
 Cr. 
 
 12 
 
 250 
 
 00 
 
 Dr. 
 
 R. SMITH. 
 
 1899 
 Jan. 
 
 1 
 31 
 
 By Cash 
 " P. & L. 
 
 Cr. 
 
 126000 
 I 75 
 
 00 
 75 
 
 i 
 
I ii 
 
 ":'.\ 
 
 Dr. 
 
 1899 
 Jan. m 
 31 
 
 To Expense 
 " R. Smith 
 
 PROFIT & LOSS. 
 
 180 
 75 
 
 255 
 
 00 
 75 
 
 75 
 
 1899 
 Jan. 
 
 31 
 
 By Mdse 
 
 Cr. 
 
 255 
 
 255 
 
 75 
 75 
 
 Dr. 
 
 1899 
 Jan, 
 
 31 
 
 To Cash 
 
 CASH. 
 
 12 
 
 7180 
 
 00 
 
 1899 
 Ian. 
 
 31 By Cash 
 
 Cr. 
 
 13 
 
 2883 
 
 00 
 
Dr. 
 
 RESOURCES. 
 
 BALANCE. 
 
 Mdse 
 
 745 00 
 
 Bills Rec. 
 
 
 950 
 
 00 
 
 R. C. Robinson 
 
 
 133 
 
 75 
 
 E. B. Smith 
 
 
 250 
 
 00 
 
 Cash 
 
 
 4297 
 
 00 
 
 
 
 6375 
 
 7") 
 
 LIABILITIES. 
 
 Bills Payable 
 }■ D. Simpson 
 R. Smith 
 
 Cr. 
 
 ISOlOO 
 
 150,00 
 
 ()075 75 
 
 ^375 75 
 
'SO 
 
 THE LEDGER. 
 
 The Ledger is the most important book, as it shows at a glance 
 how each account stands, who owes the concern and its liabilities. 
 It also shows the total resources, losses and gains. 
 
 CLOSING THK LEDGER. 
 
 The object of closing liie Ledger accounts is to show the 
 losses or gains of the business at the end of the year. The 
 accounts, however, may he closed at any lime during the year as 
 circumstances may require. 
 
 ORDER OF CLOSING. 
 
 The usual method is to open an account called " Profit & 
 Loss " or ** Loss & Gain," and another with balance, the former 
 to exhibit the losses and gains and the latter the resources and 
 liabilities. ' 
 
 The merchandise remaining unsold (Stock or Inventory on 
 hand), which amounts to $745 (see Stock book), should be 
 placed to the credit side of Merchandise Account and added to 
 the amount of the sales during the month. If the credit side is 
 greater than the debit one, it will show a gain ; if less, a loss. The 
 difference, which is $255,75, is carried to the credit of "Profit & 
 Loss " iVccount. 
 
 The " Profit & Loss " Account will show on the debit side all 
 the losses and on the credit side all the gains. 
 
 The Balance Account will show on the debit side all the re- 
 sources and on the credit side all the liabilities. 
 
 The next account we close is *' Expense." As nothing is 
 realized on expense such as those given in the Cash book, it is a 
 loss to the business. The Account is closed as shoivn in the 
 Ledger, and the total amount is placed on the debit side of the 
 " Profit & Loss " Account, being a loss instead of a gain as already 
 referred to. 
 
 It will be observed that the profits on merchandise sold dur. 
 ing the month of January amount to $255.75 and that the expenses 
 were $180, which deducted from the gain will give a net gain of 
 $75.75, which is put to the credit side of R. Smith's account, 
 showing that he oiade a clear profit of $75.75. 
 
 Having found the profits and losses, we next proceed to see 
 
81 
 
 vviiat our resources and liabilities are. This is done first by open- 
 ing the Balance Account. As the debit side equals the credit in 
 W. E. Brown's account, there is, of course, no balance, he having 
 settled his indebtedness in full. 
 
 Jn Merchandise Account there is a balance of stock on hand 
 to the value of $745, which is placed on the debit side of Balance 
 Account. The left side of the Balance Account shows the resources 
 and the right side the liabilities of the concern. The Bills Pay- 
 able account shows that R. Smith gave a note for merchandise pur- 
 chased, and, as this is a liability and the note will not be paid till 
 next month (February), the difference is placed to credit side of 
 Balance Account. 
 
 TRIAL— BALANCE. 
 
 $ 170 . W. E. Brown $ 170 
 
 3,003 Merchandise li 513 75 
 
 Bills Payable 150 
 
 950 Bills Receivable 
 
 100 J.D.Simpson 250 
 
 133.75 R. C. Robinson 
 
 500 E.B.Smith 950 
 
 R- ^"litli 6,000 
 
 180 Expense 
 
 ^'^^^ <^'ash 2,883 
 
 $12,21f;.75 $12,210.75 
 
 The first thing to be done after the transactions of a set havp 
 been posted is to lest the correctness of your work by comparing 
 the amounts of the two sides of the Ledger, and seeing that the 
 sum of the Dr. side of ail the accounts equals the sum of the Tr 
 side as above. The Trial Balance shows if the Debits and Credits' 
 on the Ledger are equal or balance. 
 
32 
 
 TIME 
 
 i I'' 
 
 For the mo nth of.. 
 
 189. 
 
 Ko. 
 
 NAME. 
 
 OCCUPATION. 
 
 H ? 
 
 < 
 H 
 
 O 
 
 H 
 
BOOK. 
 
 I 1> r 
 
 5N X|| 
 
 H 
 
 
 3;j 
 
 Foreman. 
 
 is i 
 
 :< 
 
 
 ■J 
 
 
 I 
 
 
 
 
 i 
 
 i 
 
 3 
 
 
34 
 
 RECORD OF TRANSACTIONS. 
 
 Sets II., III., IV., v., VI., VII and VIII are to be worked out 
 according to the instructions given for Set I. 
 
 Set II. 
 Montreal, 1899. 
 
 Feb. 1 — (Student's name). Commenced business on St. James 
 
 street, investing as follows : — Cash, $500 ; 100 bbls. 
 
 flour at $5.50; 300 bush, wheat at 90c.; F. Murphy 
 
 owes on account $40. 
 
 2— Bought of R. Webb, for cash, 100 bbls. flour at $5. 
 
 3— Sold VV. Lewis, for cash, 50 bush, wheat at $1.05 ; 3 
 
 bbls. flour at $6.50. 
 
 4 — Sold R. Hall, on account, 25 bush, wheat at $1 ; 15 bbls. 
 
 flour at $6. 
 
 4 — Deposited in bank cash, $50. 
 
 7— Sold J. Wallace, on account, 50 bbls. flour at $6.10 ; 30 
 
 bush, wheat at $1. 
 
 8 — Received from F. Murphy, in full of account, cash $30 ; 
 
 his note at 30 days for $10. 
 
 9 — Paid cash for books for use of store, $10. 
 
 10— Lent R. Hall a $5 bill. 
 
 11 — Paid H. Garth for repairing doors, etc., cash $1. 
 
 13— Sold R. Hope 20 bbls. flour at $6.10 on his note at 30 
 
 days. 
 
 15— Bought of P. Stewart, on my note at 10 days, 10 bbls. 
 
 flour at $6. 
 
 17 — Received from R. Hull, on account, cash $50. 
 
 18— Sold G. Elliott 100 bbls. flour at $6.10; received in 
 
 payment an order on R. Hall for $100 ; F. Murphy's 
 
 acceptance for $200 ; cash for balance, $ — . 
 
 20 — Received from R. Hall in payment of an order from G. 
 
 Elliott, cash $100. 
 
 21 — Received ]. Wallace's note at 30 days in full of account. 
 
 ^— . 
 
 22— Paid for fuel, cash $10 ; deposited in bank, cash $200. 
 
 25 — Paid cash for my note of 15th inst., $ — . 
 
 27 — Bought of A. Ledoux, on my note at 30 days, 30 bush. 
 
 wheat at 9Uc, 
 
 « 
 
 (( 
 
 (( 
 
 (( 
 
 tt 
 
 u 
 
 (( 
 
 (( 
 
 << 
 
 (< 
 
 (( 
 
35 
 
 Feb. 28— Paid for coal oil, cash $1.20. 
 " 28— Sold L, Millen, on his note at 30 days, 10 bbls. flour at 
 $6.10 ; 98 bush, wheat at 90c. 
 
 INVENTORY, FEBY. 28. 
 
 12 bbls. flour at $.).50 $ GtJ.OO 
 
 127 bush, wheat at 90c 114.30 
 
 Total $180.30 
 
 Find net gain and present capital. 
 
 GRAIN BUSINESS. 
 
 Set III. 
 Montreal, 1899. 
 
 March 1 — (Student's name). Commenced business investing as 
 follows : — Cash in safe, $2,000 ; goods in store 
 valued at $600 ; John Ferguson owes me on account 
 $40. 
 
 " 2 — Sold L. Ross, on his note at 20 days, 34 bush, wheat 
 at 75c; paid cash for fuel, $10; bought of J. 
 Brown, on account, goods invoiced at $600. (As 
 the invoices are kept in a book for the purpo se or 
 properly filed, and may therefore be referred to, it 
 is not necessary to give the items of the purchase in 
 the Day-book). 
 
 " 4 — Sold John Wilson, on account, 140 bush, barley at 50c. 
 
 " 5 — Paid cash for stationery, $1.50, 
 
 '• 6 —Gave J. Brown my note at 30 days in full of account. 
 
 '* 7 — Sold E. Murphy, on his note at 30 days, 100 bush, 
 wheat at 70c ; 260 bush, barley at 50c. 
 
 " 9— Paid cash for coal oil for use of store and for lamps, 
 $2.50. 
 
 " 11 — Received from John Wilson, on account, cash, $30 ; 
 
 his note at one month for balance, $— . 
 " 12 — Withdrew from the business cash, $100, 
 *' 13 — Sold to H. W. Robertson, for cash, 100 bush, wheat at 
 
 75c. 
 " U— Paid clerk's salary with cash, $20. 
 
(( 
 
 36 
 
 March IG— Bought of H. Dawson 80 hush, barley at 50c; gave in 
 payment John Wilson's note for 8 — . 
 
 18 — Received from John Ferguson, on account, an order 
 on A. Lewis for .$10. 
 
 20 — Sold M. Watson, on his note at 3 months, 80 bush, 
 burley at 55c. 
 
 23 — Prepaid my note in favor of J. Brown, hce of note, 
 $000 ; discount off, $1.50 ; proceeds paid with cash, 
 8508.50 (debit bills payable, credit interest and 
 discount, and cash). 
 
 25 — Received cash in payment of L. Ross' note, S— . 
 
 27 — Received from John Ferguson, on account, cash, $20. 
 
 30 — Paid clerk's salary with cash, $20. 
 
 INVENTORIES, MARCH 31 1899. 
 
 Mdse— Goods on hand $891.50 
 
 Expense — Coal oil 6.50 
 
 Result.— Net Gain, $20. Present Worth, $2,560. 
 
 (( 
 
 (( 
 
 (( 
 
 RECORD OF TRANSACTIONS. 
 
 Set IV. 
 
 1899. 
 
 April 1 — (Student's name) commenced business, investing as fol- 
 lows : cash $2,500 ; John Johnson, owes on account, 
 $40 ; James Hone, holds a note against me for $60. 
 2 — Bought of J. Wall, on account, 4 bbls. sugar, 1,000 lbs. 
 net, at 10c per lb. 
 4— Deposited in Bank, $500. 
 5 — Sold David Brown, 2 bbls. sugar^ 500 lbs. net, at lie. 
 
 Received in payment an order on I'homas Keyes. 
 6 — Bought of L. Allan, for cash, 10 chests Y. H. tea, 600 
 
 lbs., at 70c. 
 7 — Bought on my note, at 60 days, from L. Wilson, 2 hhds. 
 molasses, 126 gals, at 75c. 
 " 9— Sold R, Gault, on his note at 30 days, 4 chests Y. H. tea, 
 
 240 lbs., at 75c. 
 " 12 — Withdrew cash for private use, $100. 
 
 (( 
 
87 
 
 i( 
 
 15 
 
 (( 
 
 Hi 
 
 «i 
 
 18 
 
 kl 
 
 19 
 
 u 
 
 21 
 
 April 14 — Sold John Gould HO gals, molasses at 80c., 300 lbs. sugar, 
 at lie. Received in payment his note at 10 days 
 for §40, an order on James Hone for $10, and cash 
 for balance. 
 
 -Paid cash for office furniture, $30. 
 
 -Paid my note favor James Hone with cash, $60. 
 
 -Withdrew from the Bank. $200. 
 
 -Received from John Johnson, on account, cash, $30. 
 
 -Prepaid my note favor of L. Wilson, face, of note $94.50 ; 
 discount allowed, $2.50; jjaid balance in cash (dis- 
 count is here allowed in my favor, therefore I must 
 give credit to the interest and discount account for 
 $2.50. As interest and discount are in effect the 
 same, only one account is commonly kept for both.) 
 
 -Received from Thomas Kcyes, cash on account, $40. 
 
 -Sold D. Smith, on his note at 10 days, 50 gals, molasses 
 at sOc. 
 
 -John Gould paid his note, received 14th inst. with cash $ — 
 
 -Paid one month's rent, $40. 
 
 " 25- 
 
 '* 28- 
 
 " 29- 
 
 «'• 29 - 
 
 INVENTORIES. APRIL 30th. 
 
 Mdse., 200 lbs. suc-ar at 10 $ 20.00 
 
 360 lbs. tea at 70c 252.00 
 
 46 gals, molasses at 75c 34*50 
 
 Total $30G..50 
 
 Find net gain and presc;nt worth. 
 
 GROCERY BUSINESS. 
 
 Set V. 
 
 1899. 
 
 May 1 — (Student's name) commences the grocery business, invest- 
 ing as follows : Mdse. as per inventory, $2,450, note 
 against L. R. Dawson, dated November 4, 1899, at 6 
 months, for $400 ; cash on hand, $1,000 ; balance of 
 E. B. Watson's account, $150; he owes S. W. 
 Gerth on account, $200. 
 '' 2— Sold S. W. Gerth 20 lbs. refined sugar at 10c. ; 2 lbs. 
 Young Hyson tea at 90c. ; 2 lbs. Oolong tea at 
 90c. ; 6 lbs. coffee at 25c. 
 
38 
 
 (( 
 
 (( 
 
 <( 
 
 (( 
 
 
 May 3— Sold E. B. Watson, 12 half chests Y. H. tea, 32 lbs. 
 each at jGOc. ; 4 lbs, coffee at 25c. ; 10 lbs. oatmeal 
 at 10c. ; 10 lbs. butter at 30c ; 8 lbs. cheese at 12|c. 
 4 — Sold C. V. Gault 2 papers corn starch at 15c. ; one piece 
 smoked beef, 15 lbs. at 15c. ; 18 lbs. cheese at 12^c. 
 5 — Bought of R. G. Dun 200 lbs. cheese at 8c.; 50 doz. eggs 
 
 at 10c. 
 6 — Sold E. B. Watson 1 bag hominy, 50c. ; 10 lbs. coffee at 
 25c.* 4 gals, cider vinegar at 35c.; 2 bags salt at 
 20c. ; 5 dozen eggs at 15c. 
 8 — Sold C. V. Gault 8 lbs. butler at 30c. ; 5 lbs. lemon bis- 
 cuits at 15c. 
 — Received from E. B. Watson, cash on account $50. 
 10— Sold S. W. Gerth 5 ibs. butter at 30c. ; 1 bag buckwheat 
 flour at $1.25 ; one box soap, 40 lbs., at 8c. ; 2 lbs. 
 powdered sugar at 12Jc. ; 10 lbs. cheese at 12^c. ; 
 one gal. syrup $1. 
 11— Sold R. G. Dun 10 bags flour at $1.25. 
 12— Bought of C. V. Gault 20 bushels potatoes at 25c. ; 35 
 
 dozen eggs at 10c. 
 13_Sold E. B. Watson 10 lbs. butter at 30c. ; 5 lbs. oyster 
 biscuits at lOj., 4 lbs. soda biscuits at 10c. ; 2 boxes 
 cinnamon at 12^c. 
 1(3 — Sold S. W. Gerth, 1 paper starch, 5 lbs. at 8c.; 10 bars 
 
 soap at 15c.; 8 lbs. butter at 30c. 
 17 — Received from E. B. Watson, cash on account, $25. 
 18 — ^"old R. G. Dun 10 lbs. sugar at 10c.; 4 lbs. Imperial 
 tea $1 ; 3 lbs. coffee at 25c. ; 3 lbs. chocolate at 40c. 
 19— Sold C. V. Gault 20 lbs. sugar at 10c. ; 2 lbs. coffee at 
 25c. ; 4 lbs. oatmeal at 10c. ; one bag hominy 50c. ; 
 1 paper corn starch 15c., 3 oz. indigo at 15c. ; 2 bars 
 soap at 15c. 
 " 22— Bought of R. G. Dun 10 bbis. flour at $8. ; 3 bags oat- 
 meal at $1.25. 
 •' 23— Paid S. W. Gerth, cash on account, $25. 
 " 24 — Received from C. V. Gault, cash in full of account, S3.75. 
 Resources are : — Cash on hand, $1,0J3.75 ; merchandise as 
 per inventory, $2,350.65; note against L. R. Dawson for $400. 
 
 The result of this Set properly worked is : — Net gain, $85.05 ; 
 net worth at closing, $3,885.05. 
 
 (1 
 
39 
 
 DRY GOODS BUSINESS. 
 
 (( 
 
 (( 
 
 Set VI. 
 
 Montreal, 1899. 
 
 June 1 — (Student's name) commenced business investing as fol- 
 lows : goods on hand, $1,200. Cash in safe, $30. 
 Money deposited in the Molson's Bank, $400. 
 
 2 — Bought of J. Oman & Co., goods invoiced at $360, gave in 
 payment a clieque on the Molson's Bank for $300 
 and my note at 90 days for balance $ — . Paid cash 
 for postage 50c and for telegram 25c. 
 
 3 — Sold R. \V. Decks, on account, 20 yards black satin at 
 $2 , 40 yards Brussels carpet at $1.50 ; 2 pairs kid 
 gloves at $1.50 ; 3 yards ribbon at 35c. 
 
 5 — Paid cash for fuel, $15,50. Lent James Morris cash $6.50. 
 
 7 — Sold A. C. Mann 30 yards black cashmere at 90c.; 10 
 yards velvet at $1.00; 20 yards carpet at 70c. Re- 
 ceived in payment his cheque for $47 and an order 
 on A. McKay for balance. 
 9 — Paid cash for postage, $1.30. Paid N. Murphy's written 
 order in goods, $17.50. Received from R. W. Deeks, 
 on account, his cheq le for 840. 
 
 10 — Received from James Morris his note at 30 days in full 
 of account, $6.50. 
 
 12 — Paid cash for repairing store, $3.60. 
 
 14— Sold A. Brown, on his note at 10 days, 20 yards ging- 
 ham at 12^c. ; 10 yards flannel at 30c. ; 40 yards 
 cotton at lie; thread, 12c.; buttons, 10c. Received 
 from N. Murphy cash in full of account, $ 
 
 15 — Sold A- McGoun 120 yards sheeting at 12c. ; 15 yards 
 Tweed at $1.50; 3 yards Farmer's satin 60c. ; 12j 
 yards cashmere at $1.10. Received in payment his 
 cheque for $20, the balance to remain on account, $ 
 
 16 — Received from R. W. Deeks, on account, cash $30. Paid 
 for coal oil, cash $1.20. 
 
 20 — Received from A. McGoun, on account, his cheque for $15. 
 
 23 — Sold James Morris on account, 15 yards Tweed at 90c.; 
 13 yards broadcloth at $2.60. 
 
4U 
 
 June 26 — Deposited in Molson's Bank, cash S60. 
 " 27- Lent T. Clark a $5 bill. 
 
 " 29— Received from R. W, Decks his note at 30 days for bal- 
 ance of account, $ 
 « 30 — Paid clerk's salary with my cheque on Molson's Bank, 
 S30. 
 Inventories Jure 30th : Mdse, goods on hand, ^1,338.81. 
 Expense, fuel on hand, S5.50. 
 
 Result— Cash on hand, $105.65. Cash in Bank, S130. 
 Net gain, $20.38. Present net capital, $1,050.38. 
 
 TRANSACTIONS. 
 
 Set VII. 
 
 Montreal, 1899. 
 
 July 1 The partners in this business are H. B. Wilson and H. 
 J. Wilson. The style of the firm, H. B. Wilson & 
 Son. Each partner is to receive interest on his net 
 investment at the rate of 6 p.c. per annum and the 
 net gain or loss is to be divided equally. H. B. 
 Wilson invests cash, $10,000, H. J. Wilson invests 
 stock of dry goods valued at $7,000. 
 " 2 Paid cash for repairs and incidental expenses, $75. Sold 
 E. P. Lewis, Toronto, on account 1 case American 
 fancy prints, 1,410 yards at 10c, $141 ; 2 cases union 
 gingham, 1,785 yds. at lUc, $205.27. Total $340.27. 
 Deposited in Molson's Bank $9,000. 
 " 4 Sold B. Geer for cash, 25 pieces Scotch gingham, 87ri 
 yards at 15k., $135.62 ; 20 pieces Canton flannel, 
 714 yards at 47k., $339.15. Total $474. 77. Paid 
 cash for blank books and stationery, $62.50. Re- 
 ceived cash for petty sales, $75.10. 
 6 Bought of W. A. Shaw, Ottawa, on 3 months' credit, 10 
 pieces black French broadcloth, 300 yards, at $4.75, 
 $1,425. 
 9 Sold J. L. Hall on his note at 3 months, 130 yards alpaca 
 at 28c, $36.40 ; 60 yards black French broadcloth at 
 $5.25, $315. Total $351.40. Paid cash for services, 
 $25. Received cash for petty sales $73.75. 
 
 (( 
 
41 
 
 July 12 Sold B. B. Gibson, on account, 10 pieces Amoskeag 
 sheetings, 350 yards at IS^c, $47.25 ; 275 yards 
 regatta shirting at 9^c., $26.12 ; 10 pieces, 295 yds. 
 brown sheetings at 12Jc, 83G.87. Total $110.24. 
 " 15 Sold Chas. Dawson on account, 500 yards vaUjnciaat 38c. 
 $190; 575 yards Amoskeag tirks at 22c., 812G.50. 
 Total $316.50. Sold W. A. Lome on account 10 
 pieces Am. fancy prints, 275 yds. at lOAc, $2:^.87 ; 
 125 yards Canton flannel at 19c., -$23.75; 200 yds. 
 6-4 alpaca at 27c., .$54. Total 8106.62. Received 
 cash for petty sales $125.75. 
 
 Discounted J. I^. Hall's note of July 9, receiving proceeds 
 in cash. Face of note $351.40 ; discount for 87 
 days at 6 p.c. per annum; $5.10, jjroceeds 8346.30.* 
 
 Sold Edward Lamb on account, 1 case, 1,425 yards Mer- 
 rimack prints at 9,^c., $138.94. Received cash for 
 petty sales $116.70. 
 
 Accepted \V. A. Shaw's draft at 10 days for $1,000. 
 Sold E. P. Lewis on account, 125 yards Wamsutia 
 prints at 9c., $11.25 ; 5U yards black French broad- 
 cloth at $5.22, $261 ; 10 pieces, 512 yards denims 
 at 8|c., $43.52. Total $315.77. 
 25 Paid, per check, for insurance on stock of goods, $57.33. 
 Sold Chas. Dawson, on account, 10 pes. 357 yards 
 Manchester delaines at 18c., $64.26, 4 pes.; 115 yards 
 cashmere at $2.10, $241.50. Total $305.76. 
 
 Received cash of VV. A. Lome in full of account $ 
 
 Paid per check, for store repairs, $87.50. Received 
 cash for petty sales, $127.13. 
 
 Sold Edward Lamb on account 75 pieces black French 
 broadcloth at $4.95, $371.25. Received of Edward 
 Lamb his note at 30 days in full of account, $ 
 
 17 
 
 20 
 
 ii 09 
 
 (( 
 
 27 
 
 30 
 
 • The business method of calculating interest and discount is as follows : 
 The year has ."UJS days, and the actual time for which an obligation is to run forms 
 the basis of the ca'culalion ; again, discount is reckoned as interest on the face of 
 the obligation, and deducted therefrom. This note is dated from July 9 to 
 run 3 months. The expiration of the time would be October 9, to which add 3 
 days of grace, which is the practice, and the date of maturity is October 12. 
 From July 17 to October 12 is exactly 87 days, the lime which the note has yet 
 to run. The interest on the face of the note ($3.51.40) for 87 days at (J p.c. per 
 annum is $5.03, leaving the balance $346.37 to be paid in cash. 
 
42 
 
 July 31 Paid, per check, W. A. Shaw's sight draft on us to balance 
 
 his account S Paid H. B. Wilson, cash on 
 
 private account, $75. Deposited $1,000. Received 
 
 cash ofChas. Daw&on, in full of account $ 
 
 Interest due on investment, viz. : H. B. Wilson, S50 ; 
 H. J. Wilson, 835. Total $85. Due for services, 
 viz: H. B. Wilson, |125; H. J. Wilson, $100. 
 Total .«225.t 
 
 Inventory. 
 
 The value of unsold as per inventory is $5,650. 
 
 PRODUCE BUSINESS. 
 
 Set VIII. 
 
 1899 
 
 August 1 — (Student's name) Commenced business with $10,000 
 cash capital. Bought of H. R. Hague at 10 days, 500 
 bbls. Genesee flour at $10. Bought of James E. 
 Laing, for cash, 700 bush, oats at 60c. Sold John 
 J. Garth, on his note at 10 days, 300 bbls. flour at 
 $10,50. Sold Frederick Wise, for cash, 200 bushels 
 oats at 75c. 
 *' 2 Bought ofW. A. Kerr, for cash, 300 bbls, Toronto 
 Mills flour at $10.25. Paid cash for store expenses, 
 $75. Sold Thomas C. Ryan, on account, 100 bbls. 
 Genesee flour at $11. Bought of Samuel Goltman, 
 for cash, 1000 bush, corn at 65c. 
 
 3 Sold James E. Date, on account, 300 bush, oats at 78c. 
 Bought of J. Oman for cash 3000 bush. Milwaukee 
 club wheat at $1. Sold Henry C. Miller, for cash, 
 500 bush corn at 73c. 
 
 4 Bought of John Ledoux, on account, 4,000 bush. Chi- 
 cago spring wheat at 85c. Sold G. Davis, for cash, 
 1,500 bush. Milwaukee club wheat at $1.10. Sold 
 H. P. Shaw, for cash, 200 bbls. Toronto Mills flour 
 at $11.50. Received cash of Thomas C. Ryan in full 
 of account, $ 
 
 <( 
 
 t These items have nothing to do with the investment, and should therefore 
 be taken to the private accounts. 
 
August 5 
 
 6 
 
 a 
 
 10 
 
 12 
 
 43 
 
 Paid H. R. Hague, cash on account $2,500. Bought 
 of Samuel Lewis, for cash, 2000 bush, rye at 70c. 
 Sold J. O'Hara, for cash, 1 ,500 bush. Milwaukee club 
 wheat at $1.20. 
 
 Sold Henry Cagney, for cash, 2000 bush. Chicago 
 spring wheat at 90c. Sold James Wilson, for cash, 
 200 bush, oats at 75c. 
 Sold Philip Milloy, for cash, lOD bbls. Genesee flour 
 at $10. 7d. 100 bbls. Toronto \[ills flour at $11. 
 
 Paid J. Ledoux, cash in full of account, $ Sold J 
 
 Weston, for cash, 2000 bush. Chicago spring wheat 
 at 92c. ; 500 bush, corn at 75c. 
 Sold J. Day, for cash, 2000 bushels rye at 60c Re- 
 ceived cash in full for John J. Garth's note of the 1st 
 
 inst., $ Received cash of Tas. E. Date, in 
 
 full of account, $ Paid H. R. Hague, cash in 
 
 full of account, $ 
 
 Statement at Closing. 
 
 iCash on hand. ..77. ii fi~269i 
 
 Capital at commencing $10,000; 
 
 Net Gain ',. i^'oGqII 
 
 I 
 
 '. Ii i 1 .2t>9 
 
 11,269 
 11,209 
 
44 
 
 { ' 
 
 J^O. 
 
 BUSINESS FORMS. 
 
 Montreal^ 1S9 
 
 O'^y/C a 
 
 @^^^^^ 
 
 ^av to or liearer 
 
 -ioo' ^Dollars 
 
 $50. 
 
 m 
 
 Montreal^ Jan. 4^ I S99 
 
 Received from Mr» 'CJ)a». Mar Jan ^ 
 
 t}}e sum of I^ifty 100 ^Dollars in .settlement of account to 
 
 date . 
 
 :ti, %{\ Wilson §^ 'Co, 
 
 per R. Brown. 
 
 f300.-mr Montreal^ Jan, o, 1899 
 
 Thirty days after date^ for palue received^ 
 
 2 promise to pay to tJ}e order of Messrs. %. W. %Vilson 
 
 (^ "Co, X(?ree }}undred iO(fS)oLlars at the Molsons ^ank 
 
 f^ere. 
 
 James lioss, 
 
 J^o 'J)ac ..: 
 
46 
 
 Montreal^ Jan, 5, 1890 
 
 ^t ucjhtfor value received pay to the order, 
 
 if PA m o. 
 
 of ourselves ^P>0.^^~ Sir/ a '-'/) // 
 
 To Josfjih iBrowii rj- Sou,^ \ 
 
 Toronto, f^^' ^^- "^^^^'on ^ €o^ 
 
 Exchange for 
 
 £ 
 
 sto-. 
 
 i8 
 
 No. 
 
 c . : ''^^^' of this First of 
 
 Exchange (Second and Third of the same tenor and 
 date unpaid) pay to the Order of 
 
 Sterling value recelvedr'and placr'th^'^^me with o; 
 without further advice to account of 
 
 To 
 
 insrvoioE. 
 
 24 ST. JAMES STREET 
 
 To JOHN WATSON & SON, Dr 
 
 • • PUBLISHERS . . . 
 
 Fine Book and Job Printers. 
 
 ys9^ 
 
IDEIPOSIT SXjI3?. 
 
 THE BANK OF TORONTO 
 
 Credit 
 
 Tifiiin9'H;pf1, 1)1/ 
 
 ■ 
 
 
 
 
 of-..- 
 
 ..„ 18 
 
 X 
 
 1 
 1 = 
 
 
 
 X 
 
 2 = 
 
 i 
 
 
 
 X 
 
 4 = ! 
 
 1 
 
 
 
 X 
 
 1 
 5 = 1 
 
 
 
 X 
 
 10 = 
 
 
 
 X 
 
 20 = 
 
 
 
 X 
 
 50 = 
 
 
 
 X 
 
 100 = 
 
 
 
 , / ■' . 
 
 $ 
 
 , -- 
 
 
 
 
 
STATEMENT. 
 
 4*7 
 
 24 SX. JAMKS ST. 
 
 M ontreal, .!^."''!i?^. '^'^'^ 
 
 M 
 
 'i.JcA: Of;:A. 
 
 189^ 
 
 Vj?>« 
 
 \^^^ 
 
 Uo John Watson & Son, 3)r. 
 
 General Printers and Bookbinders 
 
 /dys 
 
 
 Account rendered 
 
 ,«^ .- 
 
 
 ji 
 - i 
 
 -• 
 
 i/eM 
 
 .V 
 
 oXl? KfOOl^ 
 
 
 1 
 
 
 6'c< 
 
 ^ 
 
 '' ' / / 
 
 
 
 
 
 
 
 /y 
 
 '/>" 
 
 
 
 ^'ov. 
 
 /i' 
 
 f ' // 
 
 ^^' 
 
 rO 
 
 1 
 
 1 
 
 
 ^fC. 
 
 ..>^ 
 
 */ // 
 
 
 SO 
 
 
 ?0 
 
 » 
 
 
 
 
 \ 
 
 1 
 i 
 
 i 
 
 1 
 
 
48 
 
 COMMERCIAL WORDS AND PHRASES IN COMMON USE. 
 
 Accept. — To acknowledge by signature or agree to [)erform 
 according to the expressed terms. 
 
 Acceptance. — A formal agreement by signature to pay a 
 draft or bill according to its terms ; the common title given to bills 
 after they have been accepted. 
 
 AccoMMODATKJN Paper. — Noles or bills drawn to be dis- 
 counted and not founded on actual sale of goods or bona fide 
 indebtedness. 
 
 Account Current. — A detailed statement of the transactions 
 between parties for a certain period, showing what is the condition 
 of affairs at the current or present time. 
 
 Account Sales. — A detailed statement rendered by a com- 
 mission merchant to his principal, showing the sales of certain 
 goods, the expenses attending ihe same and the difference or net 
 proceeds. 
 
 Acknowledge. — To admit; as by letter to admit the receipt 
 of money or goods, or by signature to certify to the genuineness of 
 a deed or mortgage. 
 
 Acknowledgment. — A receipt or admission. 
 
 Acquittance. — A release from debt or obligation, a written 
 discharge or leceipt in full. 
 
 Ad Valorem. — According to the value of ad valorem duties 
 are an impost of a certain percentage on the cost or value of the 
 article miported. Specific duties are levied upon the quantity, 
 measurement or weight as so many cents or dollars per gallon t 
 yard or pound, as the case may be. 
 
 Advance. — Money paid before goods are delivered; increase 
 of values in merchandise ; moneys or acceptances from the com- 
 mission merchant to the consignor before the goods are disposed of. 
 
 y\Dvice. — Information communicated by letter ; usually the 
 announcement of goods shipped or bills sent for acceptance. 
 
 Agreement. — A contract. 
 
 Allowance. — A deduction from the gross weight of goods. 
 
 Appraise. — To set a price upon ; to value. 
 
 Appraiser. — One who sets a value upon goods ; a government 
 official whose duty it is to examine and report the dutiable values 
 of imported merchandise. 
 

 49 
 
 Arbitration. — A method of settling differences in mercantile 
 affairs by referring the matter in dispute to two or more disin- 
 terested parties. 
 
 Assets. — Resources ; the property or effects of a person or a 
 concern in contradistinction to liabilities. 
 
 Assignee. — A person to whom the affiirs of an insolvent 
 debtor are referred for settlcmiint. An assignee is, in effect, a 
 trustee for the creditors, his duty being to make the most out of 
 the property for their benefit. 
 
 Assignment. — The act or instrument by which the property 
 and effects of an insolvent or embarrassed merchant are placed in 
 the hands of an assignee. 
 
 Auditor. — One who examines accounts ; an officer of the 
 Government through his hands all claims upon the treasury must 
 pass. 
 
 Avoirdupois.— Commercial standard of weight. 
 
 Balance Account. — An account used to contain the balances 
 of resources and liabilities comprising an epitomized statement of 
 the condition of a business. 
 
 Balance Sheet. — A statement in condensed form showing 
 the coiiJaion and progress of a business. 
 
 Bank Notes. — The promissory notes of a bank which are 
 payable on presentation at its counter, and on that account called 
 money. 
 
 Bankrupt. — A person who is unable to pay his debts or who 
 is broken up in his business ; the term usually applies to mer- 
 chants or business men. 
 
 Bill Book. — A book containing the particulars of our notes 
 issued and others' notes received. 
 
 Bill of Exchange. — A general designation given to drafts, 
 either foreign or domestic. A foreign bill of exchange is usually 
 drawn in three parts, and sent at different times or by different 
 modes of conveyance so that one at least will be sure to meet its 
 destination. 
 
 Bill of Lading. — A written instrument signed by the proper 
 officer of a vessel acknowledging the receipt of certain packages 
 or quantities of goods, and promising to deliver the same " in like 
 good order " at the place, directed, dangers of the sea excepted. 
 
 4 
 

 M 
 
 Bills Payable. — Our notes or drafts issued and to be paid. 
 
 Bills Receivable. — Other people's notes or drafts in our 
 possession. 
 
 Board of Trade. — A voluntary association of merchants or 
 business men organized and maintained for mutual benefit and for 
 the regulation of business affairs^ also known as Chamber of Com- 
 merce, Merchants' F'.xchange, etc. Aside from the benefit of in- 
 dividual contact and discussion of the vital question of commerce, 
 these associations act an important part in the arbitration and 
 settlement of differences which arise between its members, and 
 which might otherwise drift into extensive litigations. The awards 
 and decisions of these boards of arbitration are rarely appealed 
 from to the legal tribunals, and the rules and maxims thus estab- 
 lished become at last a part of the law of the land known as the 
 "Law Merchant." 
 
 Bonded Warehouse — A building or warehouse in which im- 
 ported merchandise is stored until the importer makes entry for 
 withdrawal or consumption and pays duties, or until he withdraws 
 for re-exportation to a foreign country without paying duties. 
 These warehouses are owned by private individuals, who engage, 
 under sufficient guarantee, to perform their duties .in strict accord- 
 ance with the requisition of the warehousing laws, and who must 
 first be designated and approved by the secretary of the treasury. 
 
 Bonds are obligations or deeds securing the payment of a cer- 
 tain sum of money on or before a future day appointed. 
 
 'Vhen issued by governments or corporations they are made 
 .^nominations of convenient size, bearing the interest usually 
 payable semi-annually. They frequently have coupons ox interest- 
 tickets attached, bearing date, amount, signature, etc., which are 
 due at the expiration of each successive half-year ; these are cut off 
 as they are paid and held as receipts. For temporary loans 
 Treasury notes have been also issued by the United States 
 Government, payable with interest, some with and without cou- 
 pons. Exchequer bills have been issued in England in the same 
 manner. 
 
 Bondsman. — One who is bound or gives security for the faith- 
 ful performance of any contract. 
 
 Book-Debt. — An entry or charge on a ledger, called also an 
 open account, in contra-distinction to a written promise or note. 
 
61 
 
 le 
 
 ith- 
 
 an 
 
 Brand — Technically, a mark made with a hot iron on a cask 
 or case in common usage, a trade mark either written, engraved or 
 printed, consisting of a simple device, picture, combination or name. 
 
 Breadstuffs. — An American term applied to grain, flour, 
 meal, etc. 
 
 Broker. — An agent or middle-man between buyer and seller ; 
 one who purchases or sells goods for others; a dealer in stocks. 
 
 Bull. — A stock-exchange term applied to a person who, be- 
 lieving that a certain stock will rise in the market, makes his con- 
 tracts upon that faith ; contra-distinctive of Bear which signifies 
 one who believes that a certain stock will decline in the market and 
 acts upon that belief. 
 
 The contest between the Bulls and Bears, which creates such 
 activity in the Stock-Exchange, is an effort on either hand to realize 
 the hopes upon which these transactions are based. 
 
 Bullion. — A commercial name for uncoined gold or silver. 
 
 Call. — Demand for payment of an instalment due. 
 
 Capital. — Money or other property invested in business. 
 
 Capital Stock. — A paid-in fund of a corporation or the 
 amount of value which a man employs in his business. 
 
 Cash Sales. — Sales made for ready money. 
 
 Certificates of Stock are issued to each stock-holder, indicating 
 the number of shares to which he is entitled. The first or original 
 value of the shares is called their notninal or par value. When 
 they sell for more than their par value, they are said to be above 
 par or at a premium, when for less below par or at a discount* 
 
 Clearing House. — A kind of banking exchange for the con- 
 venience of daily settlements between banks. 
 
 Clerical Error. — An error in calculation or other accidental 
 error on books or documents. 
 
 Collaterals. — Pledges or security for loans of money or other 
 indebtedness. 
 
 Commercial Paper. — Bills of exchange, drafts or promissory 
 notes given in the course of trade. 
 
 Consignee. — The person to whom articles of merchandise are 
 consigned and sent. 
 
 Consignment. — Goods consigned to a correspondent or agent 
 to be sold on account of the sender. 
 
52 
 
 Consols. — The leading Government security of England ; a 
 fund formed by the consolidation of different annuities on which 
 three per cent, interest is paid. 
 
 Consul. — An officer commissioned to reside in a seapor 
 of a foreign country, chiefly for the purpose of protecting the 
 commercial interests of the subjects or citizens of the country 
 accrediting him. 
 
 CoNTRi' ^AND. — Trade carried on contrary to the lav s of the 
 country. 
 
 Contraband Goods. — Articles prohibited by the laws to be 
 imported or exported on certain conditions. 
 
 Cooperage. — Charges for putting hoops on casks or bales. 
 
 Co-partnership. — An agreement between two or more persons 
 for joining in a business enterprise, each having a proportionate 
 interest therein. 
 
 Corner. — A term used to express a monopolizing arrange- 
 ment entered into between dealers for the purpose of creating a 
 fictitious value in any kind of produce, stocks or other commodity. 
 
 Correspondent. — One who carries on commercial intercourse 
 with another by letter. 
 
 Countermand. — A contrary order. 
 
 CouroN. — An interest certificate which is cut off when payment 
 is made. 
 
 Credit System. — The practice of selling goods on time. 
 
 Customs. — Taxes or revenue duties levied on goods exported 
 or imported. 
 
 Days of Grace. — The time usually allowed beyond the ex- 
 pressed time for the payment of negotiable paper in nearly all States. 
 Three days of grace are allowed on all written obligations, unless 
 otherwise expressly stated. 
 
 Defaulter. — One who is criminally deficient in his accounts. 
 
 Dividend is the sum divided among the stock-holders from the 
 gains of the business. 
 
 Sometimes in addition to the cash dividend, which is payable 
 at the stated time, the company declares a scrip dividend^ for which 
 certificates are issued payable on the contingency that the affairs of 
 the com])any continue prosperous. This scrip bears interest or 
 not as the company may determine. 
 
 Drawee. — The person on whom the bill or draft is drawn. 
 
63 
 
 . also l:::^"'"'' "" "^-'■"^ - -"eyi„g goods ; ca„ed 
 
 ■ custolir""-^ ■'""" ^™'"°^<=^ "^ --h-'" 'o solicit 
 Dun. -To press urgently the payment of a debt 
 
 the bo;tL~t;ttr 'To'e"^- 'T''''' "^"="'^ "'^"^ ^' 
 Omissions Excepted ™"'"^ "'^'' f"'' '^"-^ ^"^ 
 
 ErFECTS-Movable properly, available funds. 
 
 Endorsff Th. exchange. 7 o guarantee payment. 
 
 r.NuoRSEE. — Ihe person in whose fivnr ^r. ^ ^ 
 made vvnose tavor an endorsement is 
 
 -. or :x:re;7.^:Ltm::;tti: rr "= -^ - - - 
 
 siderl;: ttd'enr r'^rryTndlT- '"'"" ^°^ ^^ ^^""^ -- 
 -ney, etc., to the perslr^^ir su'c ;cCsl:: add ^^"t 
 
 FAiLURE.-Suspensionofpayment, inability to meet mercan 
 tile engagements. ^ mercan- 
 
 a --e^nXToTr-rr's.^--- ™- -■"> 
 
 FlKTURES.-Thatpartof the furnishing of a store or offl 
 w.,,ch ,s not movable, such as gas pipes an^d burL^^^^i "o^ 
 
 F.O.B.— Free on board the bill or invoice with fnU ■ . ^ 
 -.^.ortatio,, to the Shipping p.. rir^^^^^^ 
 
 .ari/r'L'tb"!-"^"'"""" """'"'"'' 'y ~s duty or 
 Gain — Profit, increase in wealth 
 
 ..int:;r;:i-jt^ iZdtthr t; t -""^'-^ 
 
 its proprietor. '" '^' vvhoever may be 
 
n 
 
 54 
 
 Greenbacks. — A name for the bills originally issued as money 
 by the United States Government during the rebellion, the backs of 
 which are printed with green ink. 
 
 Gross Earnings consist of the entire receipts of a company. 
 
 Gross Weight. — The total weight of goods and boxes, bags 
 or chests in which they are packed. 
 
 Ground Rents is a term applied to leases of building lots, the 
 rent of which is considered equivalent to the interest on the valua- 
 tion of the land. The payment is generally secured by a claim on 
 the building erected on the land occupied. 
 
 Hand. — A measure of the hand's breadth, four inches ; used 
 in measuring the height of horses ; style of handwriting. 
 
 Harbor- Master — An officer who executes the regulations 
 respecting harbors. 
 
 Insolvent. — Not having sufficient estate to pay one's debts. 
 
 Instalment.— A part of a sum of money paid or to be paid at 
 a particular time. 
 
 Inventory. — A list of merchandise usually made out at cer- 
 tain periods of the business year, for the purpose of knowing 
 the quantity and value of unsold merchandise, in order to ascertain 
 the condition of the business. 
 
 Joint Slock Company is an association of men having a capital 
 that is divided into shares of equal value, which are transferable 
 and may be bought or sold like any other property. 
 
 Journal. — A book of consecutive business record, usually the 
 medium between ihe day book and the ledger. 
 
 Letter-Book. — The book in which letters are transcribed or 
 copied. 
 
 Letter ok Credit. — A letter authorizing credit to a certain 
 amount of money to be given to the bearer. 
 
 Loss AND Gain.— A term used in general to express fluctua- 
 tion in value. As ai)plied to an account, it means a collection of 
 the particular losses and gains of a business, the result of net loss 
 or net gain being shown by either side. 
 
 Manifest. — List of a ship's cargo. 
 
 Mercantile Agency. — A concern whose business it is to 
 procure information relating to the standing and credit of country 
 merchants for the use of city merchants or others with whom they 
 deal. 
 
•■ 
 
 55 
 
 Merchandise. — A general name for goods bought and sold 
 by merchants. 
 
 Metric System. — A system of weights and measures based 
 upon the idea of employing as the unit a uniform standard, the 
 multiples and sub-divisions of which should follow in decimal pro- 
 gression. 
 
 Mint. — A place established by the Government where money 
 is coined. 
 
 Money Order. — An order on a third party requesting him 
 to pay to the person named a certain sum of money not negotiable. 
 
 Mortgage is a conveyance of property as a pledge for the 
 security of a debt, and becomes void when the debt is paid. 
 
 Net Earnings are what remains after the expenses are de- 
 ducted. 
 
 Notary Public. — An officer whose chief business it is to 
 protest paper for non-payment. 
 
 Old Accounts. — Unsettled bills or open ledger balances of 
 long standing. 
 
 Order-Book. — The book in which orders received are entered ; 
 also the book which contains copies of orders sent out. 
 
 Outstanding Accounts. — The book debts and claims which 
 are yet lo be collected. 
 
 Over Charge. — A charge at a higher rate than that implied 
 or agreed upon or than the usual rates. 
 
 Overdraw. — To draw for a sum greater than one's credit 
 balance in a bank or with a banker. 
 
 Par, — Equality in nominal and actual value. 
 
 Payee. —One in whose favor a note or bill of exchange is 
 drawn, or to whom payment is made. 
 
 Payer. — The person on whom a bill of exchange is drawn, or 
 who is to pay it. 
 
 Petty Cash-Book. — A book containing a record of small 
 receipts and disbursements. 
 
 Principal. — An employer ; the head of a commercial house ; 
 the sum on which interest accrues. 
 
 Proceeds. — Result; sum afforded by sale. 
 
 Promissory Note. — A written promise to pay to a person 
 named at a specified time a certain sum of money unconditionally. 
 
56 
 
 111 
 
 i 
 
 
 Receipt is an acknowledgment in writing that a sum of money 
 or other consideration of vahie has been received. A receipt is 
 evidence of payment against the person who signs it, and is a 
 voucher used by agents to prove the correctness of their accounts. 
 It is aUo evidence in proving facts quite distinct Ctom the payment 
 stated in it. 
 
 Sight. — The time of presenting a bill to the drawee. 
 
 Sight Draft. — A draft payable at sight or on presentation 
 to the drawee. 
 
 Simple Interest.— Legal interest on the principal only, not 
 interest on the interest. 
 
 Sleeping Partner. — One who has an interest in the profits 
 without letting his name appear or taking any part in the business. 
 
 Sterling. — The current standard money of Great Britain. 
 
 Stock is a general term applied to the bonds of the Govern- 
 ment or State, and to the bonds and shares of incorporate com- 
 panies. They are usually bought and sold through the medium of 
 brokers at the Stock Exchange. 
 
 Stock on Hand. — Unsold merchandise. 
 
 Suspense Account. — An account used to contain balances of 
 personal accounts which may be considered doubtful. The proper 
 method of keeping the suspense account, however, is to place upon 
 the credit side the separate amounts which appear upon the debit 
 side of the doubtful accounts, debiting the same to profit and loss 
 at once, thus permitting the doubtful accounts to remain upon the 
 ledger without the corresponding gain which such resources, if 
 genuine, would imply. 
 
 Trade Mark. — A device, writing or ticket put on manufac. 
 tured goods to distinguish them from others and protect the manu- 
 facturer from fraudulent imitation. 
 
 Trans-shipment. — The act of transferring merchandise from 
 one conveyance to another. 
 
 Transit. — A line of passage or conveyance through a county. 
 
 Transportation. — Conveying from one place to another. 
 
 Vouchers. — Receipts, memoranda, entries or documents, the 
 production of which establish a fact. 
 
 Underwriter. — One who insures a vessel or cargo, so called 
 because he underwrites his name to the conditions of a policy. 
 
•» J( "l-T* -/ •^M^iT 
 
 67 
 
 BUSINESS MAXIMS. 
 
 gaged'"'"™' '° '' ""'"' '" "^^ ^"'""8 "' -hichyou are en- 
 
 succe™"' "°""'"' '■"'■«'""'^"" ^''"^" "- " ^^-">g "PO" your 
 ^_^_^_^There is more in the use of a,.v„„,ages .!«„ in the measure o, 
 
 n-.tur!'"''!,"" '■";"""'^'"^ '"i"™"' ^ full acquaintance with their 
 
 tr:::;!.^""""""' -"" ^"=" --"^'^ ^'~- - '>- .^■ 
 
 regu": ;::i:e:r""^"" "'°°^^- "'^' -'-" -" >'-. pron,ote your 
 liecome known and favorably known 
 Never refuse a choice when you can get it 
 Goods well bought are half sold. 
 
 Goods in store are better than bad debts 
 Nothmg valuable is lost by civility 
 
 benemed'™""""' ' """' ''"''"''' ™"8«'-"y ^un.anity is 
 affairf '" ""'"" "™""'^ '"' ^"°>^ "^ -»" --'ition of your 
 
 .aved'^rsdeT™^-^'^ " '•^'" "'"^"^ ^='""- "'^ense ; what is 
 Reality malces no allowances for wishes or bad plans.