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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, !aft to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent ^tre filmis A des taux de reduction diffirents. Lorsque le document est trop grand pour Atre reproduit en un seul cliche, il est filmi A partir de I'angle supirieur gauche, de gauche A droite, et de haut en has, en prenant le nombre d'images nicessaire. Les dibgrammes suivants illustrent la mithode. irrata to pelure, m A n 32X 1 2 3 1 2 3 4 5 6 rm I / THE PRACTICAL BOOK-KEEPER A Treatise on the Science of Accounts, FOR USB IN BUSINESS COLLEGES, HIGH SCHOOLS, ACADEMIES, COUNT- ING-EOOMS, AND FOR SELF-INSTRUCTION BY CONNOR O'DEA, SEcnETARv OK nil; l!,„risii Amkkran Uumnkrh Coli.koe, Tokonto, Ont. TORONTO, ONT. PRINTED AT MONETARY TIMES OFFICE. 64 & 66 CHURCH STREET. 1882. / 03 >t Entorocl occordinR to Act of Parllnniont of Cnnarta, iu the year one thouBOUd eight luiiidre.l uml cit4lity-tw(i, »y CONNOU O'DKA, At tho Office of the MiniBter of Agrioulturo, Ottawa, Ontario. PREFACE. For thin work we do not claim any new theories, nor do wo assume to have made any discoverieH in the science of accounts. In undertaking the task of producing this treatise on Book-keeping, our cliiof aim lias been to arrange the matter in such a simple and practical manner as will supply a want long felt aUke in the school-room and at the acconntant's desk. In this aim, we think, we have succeeded. Great care has been taken not to enunciate any principle, rule or method of arrangement, without first giving the reasons for doing so. The book-keeper who has not mastered these is simply a calculating machine. He can work but in one way, and that i; pretty certain to bo faulty; especially when unusual transactions present themselves. The method of arranrjf'Qcnt and explana- tions are such as have been suggested by long experience in the counting-room and in the practice of teaching. The subjects of drafts, discounting and renewing of notes, have been gone into at considerable length, and we believe that the manner of explanation and the extensive collection of exercises given, will make this a valuable part of the work. Another feature, which will commend itself to the Student, will be found in the questions in review given at the end of each month's transactions. These are so arranged and numbered that the answers may be readiiy found. Owing to the limited period of time which the author has been able to devote to the task, it would be too much to expect his work to be entirely faultless. At the same time he feels confident that it will not be found astray in essential particulars ; and any inaccmacies that may be discovered will be corrected in a future edition. The author has only to add that as the embodiment of long and ample experience in the counting-house, as well as in the school-room, in the practice of teaching, he trusts his little work will be found valuable not only to account- ants and teachers, but to all who may have occasion to use it. Toronto, December, 1882, BOOK-KEEPING. 'Book-Eceping is a methodical aud particular rcccrd of buBiness trannao. tions. '-'There are two systems of book-keeping, ^tiio one termed Single Entry, the other Double luntry. '* Single Entry, as the term implies, means that each transaction is entered in the Ledger only ouce, cither on the dibit or credit side of an account; ^while in Double Entry, every debit muct have a corresponding credit, i.e., for every amount entered on the debit side of an account, an equal sum should be entered on the credit side of another account in the Ledger. ACCOUNTS. *An account is a collection of items, under a distinct title, either in opposite or the same columns, with a view to show the result of a business transaction. ^Each account has two sides, the items on one side being opposite in signifi- cance, to those on the other. *The left hand side of an account is called the Debtor (Dr.) or debit side, "the right hand the Creditor (Cr.) or credit side. '"The terms Dr. and Cr. in 13ook-Kecping are used to signify the opposite sides of an account. WHEN, AND FOR WHAT, ACCOUNTS ARE DEBITED AND CREDITED. CASH ACCOUNT. » 'DEBITED for receipts. | '= CREDITED for payments. "By "Cash" we mean Gold, Silver, Bank Notes, Bank Cheques, Demand ind Sight Drafts, and Post Oflice Orders. '*Tlie Dr. side, if there is any difference between the two sides, will bo the proater, "because we cannot pay out more than we take in, '"and the difference is the amount of cash on band, ' ^and is called " assets." ' ^Whcu the account balances there should be lic '."ish on hand. PERSONAL ACCOUNTS. ''DEBITED when they become indebted to us, and when we pay theui. ""OEEDIIZD when we become indebted to them, and when they pay us. •'By "Personal Accounts" we mean accounts which wo keep with other persons, " the object of which is to show our transactions with them, 6 THE PRACTICAL BOOK-KEEPER. and whether they owe as, or we owe them. "The sum of the items on the Dr. Bide reproscuts our account agniust the person; ^^and the Hum of the items on the Gr. side represents such person's account against us. "Ifthe Dr. side ia in excess, the person owes us, ••nnd the difference is called Ashets. '''It th'd Or. side is in excess, wo owe the person, '"'and the difference i« called LiAuuiiTibd. BILLS RECEIVABLE ACCOUNT. ••DEBITED for others' promissory notes or acceptances when re- ceived. •"OREDITED wlien such notea or uccuptuuccB are paid or disposed of. *>By "Bills Bkceivahle " we mean other persons' Promissory Notes, Time DaArrs and Acckptances. '"The Dr. side will he the greater, if there is any difference, ^^bccause we cannot pay or dispose of more than we have received. ^^^The difference is the amount of Notes, Drafts and Acceptances on hand, ^^and is called "Assets." ^''This account will balance when all Bills Receivable are paid or disposed of. BILLS PAYABLE ACCOUNT. 3 7 DEBITED when paid or redeemed. "OBEDITED with onr Promissory Notes and Acceptances when issued. •*By "Bills Payarle" we mean our Prouishobv Notes and Accept- ances. <<'The Cr. side will be the greater, if there is any difference, ^'because we do not pay more tlian we have issued. ^''Tho difference is the amount of Bills Payable outstandiug, *'aud is called Liauiuties. **Thi8 account will balance wheu all outstanding notes are paid or redeemed. MERCUANDISE ACCOUNT. « "DEBITED for cost. | * "CREDITED for sales. *'By "Merchandise''* we n. can goods in which we deal as a business, as "Flour," " Wueat," "Corn," "Field Puouuce of any kind," Coal and OTHER Mineral I'koducts," *• Dry Goods," "Groceries," "Drugs," "Hard- ware," "Boots and Shoes," "Crockery," &c., &o. ♦* Now, since the Dr. side shows the cost and the Cr. side the sales, ♦"the diffi-i-fncc must be Gain or Loss, provided the goods have all been sold. ''"And if tlierc are any goods remaining unsold, their value (cost generally) is added to the Cr. side, ""and if this side be then the greater in amount, the diiroreuce is Profit or Gain. "-If the Dr. side be the greater in amount, "'the difference between the two sides is Loss, REAL ESTATE ACCOUNT. "♦DEBITED for cost. | •"OREDITED for sales. ••By " Real Estate" we mean " Houses and Lands," "^and the explana- tions and rules given in Merchandize Account, apply equally to this account ; "•the difference between the Debits and Credits being Gain or Loss, — "'Gaim whe -ue Cr. side is in excess — ""Loss when the Dr. side is in excess. •Somotimeii, for tlie purpose of oxhihitinR resultg of dealings in pnrticular artirles, eepM^ta accounts aro oi)cnoER. 7 KXPKNSE ACCOUNT. • 'DEBITED for cost, or outlay. | « "OEEDITED for returns (if any). • 3By " ExPENas " wo mean all money paid out fur the carrying on of th« basiness, as " 11i:nt," "Fuel," " Salauikh," "IIookh and Stationery," &o. '*Tlii8 accouut gcuornlly shows a Loss, there being scarcely over enough returns to counterbalance the debits. INTEREST AND DISCOUNT ACCOUNT. ••DEBITED for what Ar» allow to others. | "OGBEDITED for what others allow as. ■'By " Interest" wo mean a payment for the use of money ; and ••by " Discount " we mean an allowance made for the payment of a debt before it is due. "^If the Cr. side is in excess, the diiTerence is Gain. '"If the Da. side is in excess, the difference is Loss. STOCK ACCOUNT. »« DEBITED for LiabiHties as-nmed, WlTUURAWALS ttud NeT LoSS. 'SQBEDITED for Investments and Net Gains. "By "Stock" we mean the proprietor of the business, this designation "stock" being used only iu place of the proprietor's name. '*The difference between the Dr. and Cr. sides shows Net Investment, Present Value, or Insol- TKNOY. PARTNERS' ACCOUNT. '■OBEDITED for his Investments and his respective share of Gain. » 'DEBITED for Liabilities assumed for him, withdrawals, and for his respective share of Loss. "By "Partners' Account," we mean the account that is opened in the Ledger with each partner, when two or more persons enter into a partnership* contract to carry on a business together. "*The conditions and results of each partner's accouut are the same as in " Stock Account." COMMISSION, STORAGE, INSURANCE, CHARGES, Ac, ACCOUNTS. '•DEBITED for outlay or what they cost. •"OEEDITED for proceeds or what they produce. • »If • 'If the Dr. side of above acconnts is in excess, the difference is Loss, the Cr. side is iu excess, the difference is Gain. ssBy "Assets" we mean money and property on hand, and debts owing to QS. •*By "Liabilities" we mean debts owing by us. ••By "Loss" we mean that less value has been received than given in exchange ; also the result of depreciation in value. seBy '< Gain" we mean that more value has been received than given in exchange ; also the result of increase in value. •'Every excess on the Dr. side of Led- OER Accounts shows either an Asset or a Loss. ••Every excess on the Cr. side of Lkd- OER Accounts shows either a Lia- bility or a Gain. ■ TOE PHACTICAL OOUK-KElLPEa. EXAMPLES IN JOUUNALIZINO. Bead the Dny Book entry, then observe liow it in jotirnftlizod, and iitndy the explanatiouH whioli follow each oiampks oouHuliiug the ruluit tu wliiuh uumerioal referuuoes ore mado. DtU. Jaa. EXAUI'LK 1. Day nook Kntry. lUmi. Amount. Data. Journal F.iitry. Dr. Cr. I bareoomin«iio«>(lbuil> UfH ti.iH (lay Willi a oaali uaiiltal ut - • • 400U Jan. Caah, Dr. lo Btook. Or. 4000 lan Cash is Dr. because you receive it into the busiuess. (Sue 11, page 6.) Btuck is Cr. for amouut iuvestod. (See 7*2, page 7.) Data. EXAUPLK 2. Day Hook Kntry. Itoms. Amount. Data. Journal Rntry. Dr. Cr. Jan. I owe E. Trout on acot., whi<'li In to be paid out of tlie buiiuou. 1000 Jan. Btork. Dr.. To Uaw. Trout, Cr. 1000 1000 Stuck is Dr. for Liabilities assumed. (See 71, page 7.) E. Trout ia Cr. because I am iudebtod to him. (See 20, page 5.) Date. Day Orok Entry. ExAMPI.K 8. ItfiuiB. Amount. Date. Journal Entry. Dr. Or. Jan. Doujhtof W. H. Covort, for CuHli, 1(0 Uarreli i lour (Li *0.00 - - - 60) Jan. S MercbandiM), Dr. To Uaali, Cr. flOO 800 Merchaudiuo is Dr. because it is bought (See 45, page G.) Cosh is Cr. because it is paid. (See 12, page 5.) Example 4. Date. DRV Book Entry. Itoma. Annount. Date. Journal Entry. Dr. Or. Jan. Uouglit of W. H. Dnnnis oti HCcnuMt* 120 UbU. Flourut *().0i«, (Or. 1500 isao Merchandise is Dr. because it is bought. (See 45, page 6.) W. H. Dennis is Cr., because I become indebted to him. (See 20, page 6.) 'Buying on orcoitnt oieanR that you do not give anything In payment at the time of purchaae, tljerpfore you b< come indebted to the }inr«nn. Selling on arenunt means that you do not rooeiT* anything in payment at the time of sale, therefore the person becomes indebted to you. TUa PiUOTIOAL BOOK-KI.UraB. KXAMPI.B 5. I>»7 Book Katry. It«ini. Amount. D»t«. Jowm*! Entry. Dr. Jm. BiiMO. O'lteaforniiMi: IM UbU. »l..urtf e-ii fl-JO Jftii 4 CMh Dr. ; T I UvroluuilUe, Cr. aao (MO ChhIi ih Dr. becauflo it is received. (S(lUuihela Wheat ift I 180 Oavo in pityiiipnt luy nuto((} i uiuutha. SIO Jan. Uerohnn'lUc, T>r. To UilU vayulilu, Cr. no 010 1 McrchaudiHc is Dr. bccnuso it is bought. (Soo 4S Pa^^o G). Bills Payable is Cr. because my Prumissory Note is issued. (See 88, Page G). Example 8. Dftta. Day Bnrk Entry. It-ai I'l. I 4U - - - 100 libln. KliMir"f 7<« • lliM'clvcil ill imyiuetlt bisuuiuitfUmuB. ■ - 700 7u01 1400 Jon. 7 UiUn HocpIvhIIo, Dr. - To MercUauUkao, Cr. IIOO 1400 Bills Rcceivnblo is Dr. because others' PromiHm)ry Notes are received. (See 2U, Pn«o 0). Mercliandise ia Cr. because it is sold. (See 40, Pago C). Data. Dar Book Bntry. EXAMPLK 0. TtemK. Amnunt. Date. Jonrnal Entry. Dr. Or. Jan. Sola E. Tmut SO IlbU. Flour w 7 (10 - • - 900 Hunli Wheat © l..V> Keci-neil In part piiy- niorit, Cnuli ^ Oi) - ■ B.co to rimuia on RCfdUIlt Jon. 7 140 t 270 410 Caxh Pr. • - K. Trout Dr. - - . To MeruliaudiBo Cr. 800 no 410 Cash is Dr. because it is received. (See 11, Pa^e 5). For the balance remainiug unpaid (See 19, Pago 5). E. Trout is Dr. bccau.se he becomes indebted to me. Merchandise is Cr. because it is sold. (Sue 4G, Page G). 10 THE PBACTIOAIi BOOK-EEEPEB. Dnt*. Cay Book Bntry. Example 10. Item*. Amonnt. Date. Journal Entry. Dr. Cr. Jan. 10 Bonght of a. T. Hlokis lUO Hub. Corn o. - Oave in part pavment iiiy note (g> 3 mos. for Balance to reuain ou auouuut. • • • . • 60 25 " Jan. 10 Mt^.'chandiie Dr. To UUi8 Payable Or. " a. T.Miokle, Cr. 76 SO as Merchandise is Dr. because it is boun^ht. (See 45, Page G). Bills payable is Cr. because my Fromiusory Ikote is issued. (See 88, Page 6). G. T. ^lickle is Cr. because he becomes indebted to me for the balance remaining unpaid. (See 20, Page 5). Dat«. Day Book Entry. Example 11. Items. Amount. Date. Jonmal Entry. Dr. Cr. Jan. U Paid E. Tront : Cash in fuU of his iiocount - - . - eoo 'Jan. 11 R Trout, Dr. To CuBk Cc. 890 890 E. Trout is Dr. because I pay him, or get out of his debt. (See 19, Tage 6). Cash is Cr. because it ia paid. (See 12, Pago 5). Date. Day Book Entry. Example 12. Items. Amount. Date. Journal Entry. Dr. Cr. Jan. |P re paid S. W. Jones' noteiif thoCih inst. - - Gave in iiaviuout, Cabh Discount oil, - - - - Jan. 15 1 910 607 26, 12 71 To Cash Cr. - - " DisuouutCr. - 910 897W 12 71 Bills jiaynble is Dr. because my Promissory Note is redeemed. (See 87, Pago G). Cash is Cr. because it is paid. (See 12, Page 5). Discount is Cr. because it is allowed me. (See GG, Page 7). Date. Example 13. Dny Book Entry. Items. Amount. Date. Journal Entry. Dr. Cr. July IB Paid G. T. llickle : Cash ia full of account - 1 2j Jau. 1 10 G. T. Mickle Dr. - To Cush Cr. - 26 1 2S G. T. Mickle is Dr. because I pay him. (See 10, Page 5). Cash is Cr. because it ia paid. (See 12, Page C). Date Day Bonk Entry. ExAMPLK 14. Itpms. Amount. Date. Journal Entry. Jan. 10 Withdvow frnni busi- noHB for private use, Cash 1,50 Jan. 10 Stork D'.. 1 To Cash Cr. Stock is Dr. for withdrawals. (See 71, paf,'e 7.) Cash is Cr., because it is paid. (See 12, page 5.) Dr. Cr. 150 1 ISO THE PRACTICAL BOOK-KEEPEB. 11 Or. 890 Cr. 897 12 25, Date Example 15. Dny Dooli Entry. Items. Amount. Date. JournaJ Entry. Dr. rr. Jan. 17 W. \foore has prepaid his note o{ the 7th in^t. RecMCxsb, .... -;i3fWC3 Discount, L 19 a7 1400 Jan. 17 Cash. Dr. Disconnt, Dr. . . • - To BUls Beo'ble Cr. 13n0 63 19 37 1400 Cash is Dr. bccausb it is received. (See 11, page 5.) Discount is Dr. because it is allowed to others. (See 65, page 7.) Bills Eeceivable is Cr. because they are paid or disposed pf. (See 80, page 0.) Example 16. Date. Day D'^ok Entry. Items. Amount. Date. Journal Entry. Dr. Cr. Jan. 18 Paid Cash for one mo's rent of store • - - do. One mo's clerk hire Jan. 18 SO 46 03 Expenne, Dr. To Cash Cr. 95 96 Expense is Dr. for cost or outlay. (See CI, page 7.) Cash is Cr. because it is paid. (See 12, page 5.) Date. Day Book Entry. Example 17. IteniH. .\mount. Date. Jonnml Entry. Dr. Cr. Jan. 19 Sold Jus. Canierou on ncct. 100 butli Corn u$ 600 £0 Jan. in Jas. Camoron, Dr. To Udse. Cr. - 80 80 James Cameron is Dr. because he becomes indebted to me. (See 19, page h.) Mdsc. is Cr. because it is sold. (See 40, page C.) Example 18. Date. Dny Took Kntry. Items. Amount. Date. Joumnl Entry. Dr. Cr. Jon. iW Bouebt of Alex. Mann- ing on acct. Lot No. 407 KinR Street West, 300 foet frontage, (ii, *30 per foot - . . - 0003 Jan. 120 Real Estate, Dr.- - - - To Alex. Manning, Cr. 0000 9000 Real Estate is Dr. because it is bought. (Sec 54, page 0.) Alex. Manning is Cr. because I become indebted to him. (See 20, page 5.) Examplk 19. Date. Day Book Entry. Items. Amount. Date. Journal Entry. Dr. Cr. Jan. £4 Bold W. McMnster on acct.. Lot Nn. 407 K ng St. West, »X) ft. front- age, @ 140 per foot - - 12000 Jan. ei W. McMastcr Dr. To lieol Estate Cr. 12000 laooo V'\ McMaster is Dr. becarse he becomes indebted to me. (See 19, page 5.) .Tleal Estate is Cr. because it is sold. (See 5, page 6.) JOURNAL ENTRIES— POSTING TO LEDGER. The Journal Entries from the precedinqr 19 Examples, are now posted to their respective accounts in the Ledger. The student should read over care- fully the explanations given for each entry — which will be found under each Journal Entry, commencing on Page 12. 12 THE PRACTICAL BOOK-KEEPER. JOURNAL. Entries and Explanatioiu for Foiting. j».t« Entry and *"*"• Explanations. Dr. Cn. (Example 1, page B.) CASH, Dr. (1) To STOCK, Cr. (2) On the Dr. side of Cash Account (imKe 13) you write the word« "To Stock," »4000. (Example 1, page 8.> Then on the Cr. Bide of Stock Account (page 12) you write the words, "By Cash," $4U00. (Example 2, page 6.) RTOCK, Dr. (3) ToE. TK0UT,Cr.(4) On the Dr. side of "Stock" Account (page I'i) you wri'e the words, " To E. TKonx, ' •looa (Example 2, page 6.) Then on the Cr side of E. Trout's Account 'pftgo 1-) yo» writo "lix Stock," •1,00(). (Example 3, pages.) MEncnA>'DLSK,Dr.(5) To CASH, Cr. (0) On the Dr. side of Mrrcu ANOiHi': Ac- count (p 12) writo fiio words "To Cab n," ftiOO. Thpn ontlioCr. side of Cimh Account (page 12) writo "By UBRcaAKDlBK," tCOO iOOO 00 1000 00 600 00 SOOOOOi 4000 00 icoo'oo (Dr. HOe.) Dr. LEDGER. AOCOCMTB. CASH. (Or. tide.) On. I I Jan' 1 ToRtock(l).. Jan 000 (X) 500(1 Mdso (U) . do. (1H» BiUBliec.(33).. 4000 020 800 IStlO Jan I 2 U 12 Kl 18 ByMdRO (G) •' E. Trout (24) " Bill^P'yblei2J) " G.T.Mickle(28) " Stock all ... " Expense (So) 60000 800 00 807126 2.'>00 150 00 9S0O STOCK. Jan ToE. Trout (3).. " Cash (80) 1000 ISU Jon 1 By Cash (2). 4000 00 E. TROUT, ToMdso (19) " Cosh (23).., nooo bOOOO Jan By Stock (4) 1000 00 MERCHANDISE. Jan ToCaah (5) "W. H.Donuis(7 "J!lllHP'yble(13) "Sundries (20).... GOO ■Jio 75 001 Jan 00 00 00 ByCash(lO) \VTBrown(12 Bills Hec. (lU) 8unilrie8(17) J.Camoruu(38) 620 00 840 00 1400 00 410 00 80 00 W. H. DENNIS. By Mdse (8).. ISCO 00 THE PRACTICAL BOOK-KEEPER. 18 JOURNAL. SntriM and Explaiiatioiit for Potting. Data. Entry and ExplaiiatiunB. Dr. Cr. Amounts forward (Example i, page 6.) >liR('iU>'DISi:,Dr.(7l ToH'.U.UE)iM8,Cr.(6) On the Or. side of Udbe. Account iV'iMje I'ii write the wurdii U) W. H. Denni-V Then on the Cr. side of "W. U. Dennib" accuiiiit ', imgv 12i write ' iilMuHJi." AlSfiO (Example 5, page 9.) CASH, Ur. (9) To HUtiE, Cr. (10) On the Dr. side of Cahb" Account (page li write the wurob, " To AIUHE," »020. Then on the Cr. side of "AlUBB" A' uUUt, (page i2j write the worOa, "Bx Ca8H," (Example 6, page 0.) W. T. BUOH .X, Dr. (U) ToHUSK,Cr.(W On the Dr. side of W. T. ItliowN's" Ac- count ()'■'({" i-'J write To ilLlBK," «8-10. Then on the Cr. side of Alaso. rtcet. ipato 13p wi .18 " iiv \V. X Uuow.s," $H0. (Example 7, page 9.; KUiE. Dr. (13) To BILLS l"BI.Krr.(lli On the Dr. bido of Mi'»E. .'Vo'ciuut pago lii writd " lo biM.H 1'AVA11L,|;."#.I10. i I'hou on tUo Ur. siilo of " U1I.L8 I'AVAUl.K" (page 131 write "Uy MUHE., *010. SGOOO 1560, U«> 5C0O0O u20 00 840 OU 910 ai 9580 Oil laso 00 G20 00 (Dr. tid«.) On. LEDGER. ACCOUNTS. Jan 8 To Mdse.dl). W. T. BROWN 840 (Or. tide.) Cr. 00 BILLS PAYABLE. Jan 12 To Sundries (22). 910 00 Jon I TByMdse (14) 10 •' do. (21)... 910 ao 0» oo BILLS RECEIVABLE. Jau 7 ToMdse (l.'i) 1400 00 I Jan 17 By Sundries (32). 1400 00' »40.00 910 00 Q. T. MICKLE. Juuir To Cash (28) i)530 00 2-) 00 Ijan 10ByMdbe(22) •25 00 14 THK PRACTICAL BOOE-KEEPEB. JOURNAL. BnMet and ExpUnatiom for Potting. Date. Entry and Explanations. Dr. Cn. Amounts forward (Example 8, page 9.> DILKS BEC'TBLE (15) To HOSE, (10) On the Dr. sido of BlI.L,B liECKIVADLK Acct. (pa^e 13) writo "To MD8E," •1400. Thon on the Cr. Ride of Mdbk. Aueuunt (page 12} write "Bt ILLS liECUlVABLE," «14U0. (Example 1), page 0.) CASH, (17) E. TBODT, (16) To NIISE, (10) On tlio Dr. side of Cash" Accimnt(i)iifW ■2i ^vrito " 1 o AlDbE, " $»0O, and ou the Dr. Bide of "E. TiiouT's" Account (i>ayo 1'2) "To blBb£,"«UU. Then on the C: jido of "Mdhe" Accuuut, (page 12) write "lli bONDllIKS," Sill). (Example 10, page 10.) MUSE, (20) ToUILLSPRLE8," »7J. I Thon on tlio Cr. side' of "UlLLS 1'AVABLK", Aoct. (page 13i write "UyMube," toil, aiao on the Cr. aide ut MicKJjR's" Account, (pagai3) write "By UuHE, 9ij. (Example 11, page 10.; E. TBOVT, (23) To CASH, (24) On the Dr. side of "TnotiT'B".\oct. page ia» write "To Cash," •890. Then on the Cr. sido of " Cash " Acct. (page 12) write "By K. Tmout," «aOO. Forward, • 0580 1100 00 00 300 110 75 00 890 00 1230.) 00 0530 00, 1400 00 410 00 50 00 I 25 OJ 890 00 Janin To Bills Beo., (84) (Dr. tide.) On. LEDGER. ACC0CNT8. DISCOUNT. (Or. lidt.). Cr. 19 37 Jan 12 By BilUPay., (27) 1374 EXPENSE. Jan 18 To Cash (3o) 95 00 JAMES CAMERON. Jan 10 ToMOse (37) 80 00 REAL ESTATE. Jan 20 To A.MauuingiSO) 1230.-) 00 0000 00 Jan 21 By W. McMas- tor(i2) 12000 00 THE PBACTIOAL BOOK-KEEPER. 15 JOURNAL. Entries and Exphimitiotu for Ponting. Da'ce. Kntry and ExpluuatiuiiH. Dr. Amouuta forward (Example 12,pagel0.) UIU» PAVABI.E (25) To CASH (2C) " DI.SCUUM (27) On the Dr. side of BUiLB I'ATAULE (I>a|jO 13) write "To bUN UUIEB," t'JiO. Tbou on the Cr. side! of "Cash" tpaije 12,' write "By BiiiiiU Pat-: ABLE," $i3>J7.'2u. { I Aluu Oil tlio Cr. side of "Discount" (page 141 write "By BiLiib Pay abIiB ," »12.74. _ (EziimpU; 13, page 10.; a.T.lllt'KI.K,(ZH) To CASH (2U) For oxplauiitiuua see' Ejt. 11, p g^u JO . (Example li.pajtlO.) STOCK (30) To CASH (31) On the Di. side of "Stock" p 12) write To Caku," *ljO. Tliuu uu tliu Cr. side of "Cash" ipaye l^j write "By bTocK," HuO ( Example !:>, page 11.; CASH ^3:^) UlStOlWT (331 ToUILL>iUtC'ULEi34 For explauatiuns see Ex. 'J. pajje 'J. (Exa'iiple 10, page 11/ KXl'KASK (3.5) To CASH ISO) On the Dr. side of 'E\PEN8K' (payo 14) vrriie " To CabU," #1)5. Tiien on tliu (Jr. side of "Cash" ip. 12) write 'B y EX PK.SaK," *J.J. (Example 17, pm/e 11 / JaBKS CAHKUO.N (37) TonilSK. t3.S) For oxplanatioua sec Kx. 0, pa^o 'J. ( Example 1% pagel\)\ BKAIi K.STAIK (39) To A. XA.N.M.\U(10) On the Dr. side of " Rbal Estate " ( pa^e 15) write " I'o A. Man- NINO, C'JOOO. I Then on the Cr. side! of "A. Mannino" (page LI) write "By BsAii Estate," 8j000. (Example 19, pag' UA W. afMA^TKH (41) To HEAL KS TATE (42 ) 12305 0. 010 00 2,-. 00 150 00 I3S0 63 10 37 05 00 80 00 9000 0! 13000 00 859(15:0.1 Cn. 12305 00 807 20 12 74 25 00 150 00 14(10 OO! 05 80 00 oo: (Dr. tide.) Dr. LEDGER. ACCOT7NT8. A. MANNING. (Or. tide.} Or. Jan 20 By lieal Est., (40) 0000 00 W.McMASTER. Jan 24 To Real Bbt., ( (2) 12000 00 n'nn'l 'I 9000 00 I2IIII (« 3jUIV>|00 16 THK PRAOTIOAL BOOK-KEEPER. ! '• RECORD OF BUSINESS TRANSACTIONS. ' B A business transaction consists of an exchange of values — something received for something given, ""and its complete record requires at least two entries, ''one to the dubit side of an account, and one to the credit side of another account. <*3The records of transactions may require any one of the following fonx forms : 1. '^One debit and one credit, as — '♦Cash, Dr $100 00 To Mdse., Cr $100 00 2. '*One debit and two or more credits, as — •'Cash Dr. to Sundries 1000 00 To W.Smith 700 00 " E. Trout 800 00 8. "Two or more debits and one credit, as — "^Sundries Dr. to Mdse 1000 00 Cash 500 00 Bills Receivable 500 00 4. ''Two or more debits and two or more credits, as — ""Sundries Dr. to Sundries. CashDr 1140 00 W.MunroDr 8G0 00 To Mdse. Cr , 100 00 " Real Estate Cr 1900 00 lo^Butiu every case the sum of the debits must equal the sum of the credits. '*3The transactions that require to be recorded in business books, are first entered in the date and order of their occurrence in the Day Book, or Blotter, or Day-Book-Journal combined, or in several books, each representing a special department of the business, as the Cash-Book, Bill-Book, Invoice-Book, Sales- Book, &o. The office or use of each of these books will be fully illustrated in this work. 103THE DAY BOOK Contains a record of business transactions written under the date and in the order of their occurrence. "♦Such record should be made immediately after each transaction takes place, omitting nothing of importance, and being clear, explicit, and not of doubtful meaning. THE PBACTICAL BOOKEEEPEB. DAY BOOK. January 2ud, 1882. 17 Commenced business this day with a Cash Capital of Made arrangements with Bank of Commerce to keep our account there. 8 Deposited in Bank of Commerce, Cash- Leased of A. Manning tlie premises No. 140 Front Street East, at nn annual Rental of $G0O. Bent to be paid monthly. Bought of Edward Trout on account, 120 Bushels Barley @ 60c. - - 104 Bushels Fall Wheat @ 1.20 Bought of W. P. Rowland & Co., for Cash, 100 Bushels Barley @ 00c. - - - - 129 Bushels Fall Wheat @ 1.24 - - 6 Sold R. E. Gallagher on his note @ 8 months, 120 Bushels Barley @ G5c. 129 Bushels I'aU Wheat @ 1.31 - . - Sold Davis & Buie, for Cash, 104 Bushels Fall Wheat @ 1.30 100 Bushels Barley @ G4c. - 8 Deposited in Bank of Commerce, Cash 1 1 Bought of Crane & Baird, on my note at 4 mos., 90 Bushels Corn @, 70c. 200 Bushels Peas @ 80c. 80 Bbls. XXX Flour @ 5.90 - - - - Bought of W. P. Howl and & Co., 200 IJnshels Fall Wheat @, 1.22 .... 70 Barrels XXX Flour @ 5.70 .... 100 Bushels Corn @, 70c. Gave in payment my cheque on Bank Commerce -12 Sold L. Coffee & Co., on account, 100 Bushels Corn @ 80c. - - 70 Barrels XXX Flour @ 6.00 13 Bought of A. & S. Nairn, for Cash, 2 tons of Coal for office @ 6.50 Items. 72 124 60 159 78 168 135 64 00 80 00 96 00 99 20 00 63 00 160 00 472 00 244 00 399,00 70 00 80 00 42000 Amount. 600000 4000 00 196 219 246 199 500 695 80 96 99 20 00 00 718 600 18 00 00 00 18 TUB PRAOTIOAL BOOK-KEEPEB. U Sold C. Fleming, 80 Jiarrels XXX Flour @ $0.00 .... 200 BusLeU Fall Wheat @ $1.80 • - ■ Beoeived iu part pa^meut, Cash, $500 ■ . . • Balance to remain ou account, $240 .... 16 Bcceived of L. Coffee & Co. Cash to apply on their accouat .... 17 Bought of W. D. Matthews & Co., 80 Bushels of Rye @)70c. 240 •• Odts @ COo. Gave in part payment my cheque on Bank of Commerce $100 Balance to remain on account • • - 76 19 Bought of L. Coffee & Co. on account, 70 Barrels XXX Flour @ $5.70 .... 120 Bushels of Barley © COc 20 Bought of J. & A. Clark on my note at 4 mos., 200 Bushels t Fall Wheat @ $1.22 . - - 80 Barrels XXX Flour @ $5.90 .... 129 Bushels of Fall Wheat @ $1.24 - - - 21 Sold W. D. Matthews & Co. for Cash, 129 Bushels of Fall Wheat @ $1.81 - . - 240 •• Oatsate.c _^^________^^___ II Sold W. P. Howland & Co., for Cash, 80 Barrels Flour @ $6.00 200 Bushels Fall Wheat @ $1.80 - - . - 200 Bushels Peas @ 84c. 28 Sold J. D. Laidlaw, for Cash, 80 Bushels Rye @ 80c. 120 Bushels Barley @ 05c. 24 Bought of Edw. Trout, Jn account, 200 Bushels Peas @ 80c. ...... 104 Bushels Fall Wheat @ $1.20 - - - 26 . Bought of W. D. Matthews & Co., on account, 240 Bushels Oats @ 50c. 100 Bushels Barley @ 60o. Itam>. 480 260 Amounl 740 60 120 899 72 244 472 159 108 129 96 99 60 480 260 168 04 78 100 124 80 120 60 800 176 471 875 298 96 69 908 142 284 80 180 THE PRACTICAL BOOK-KEEPER. 19 27 Bold C. Fleming, on account, 104 Bushels Fall Wheat @ ^1.80 - • 200 Bushels Peas @ Hie. 28 Gave E. Trout my cheque on Bank of Commerce to apply on account 29 Received of C. Fleming, Gash to apply on account 80 Paid Cash for the following Expenses, Clerk's salary, one month --..«- Rent " Blank books, stationery, stamps, &o. - • - 70 Bbls XXX Flour @ $5.70 = 809 240 Bushels Oats @ 50c. =120 T 1 100 Bushels Barley @ 60o. = GO Inventory.^ 90 Bushels Corn @ 70o. = 68 Total $042 Itomi 186 1G8 20 Amount, 803 20 200 250 50 50 88 20 188 20 90 THE PBACTIOAL BOOK-KEEPER. is, I . I JOUllNAL. January 2utl, 1882. ID> Knat (^".V) Cash /BMKt.m /BM ll. «.\ /8m ii. a,\ \ tiMm «. ) /8m Ki. 6,\ Vpitg«». / /BMEs.ir I ptgsiO. , /Bm Kl 7,\ /BmXx. 4, V 1^*8. . (8m Kx. «, /8wEi.l6' V IWga 11.; To Stock 8- Bank of Commerce To Cash Morchaudiso To Edwd. Trout 5 Merchandise To Cash 0- Bills Receivable - To Merchandise Cash • To Merchandise 8 Bank of Commerce To Cash 11 Merchandise To Bills Payable - Merchandise To Bank of Commerce 12 L. Coffee & Co. To Merchandise -13 — - Expense To Cash 14- * Sundries Cash - C. Fleming To Merchandise Amounts forward L. r. .1— Da. 23 5000 00 23 21 -1000 23, 2R 19G -'4, 23 219 23 i 24 240 23 23 23 24 23 28 24 23 24 24 23 25 23 23 23 25 199 00 80 9(5 99 20 500 00 G95 00 71800 50000 13 00 500 00 240 00 0%. 5000 00 400000 13023 95 19G 80 219 96 246 199 500 695 718 600 18 740 99 20 00 00 00 00 00 00 18023195 •The term "Sundries" ia a Journal title used when the entry ronaistB of one debit and two or More credits, or two or more debits and one credit, or two or more dt bits und two or more ore.lits and la introduced for the purpose of economy of space in LcdRor. The use of the word " Sundriea" on tha Or. side of Mdgo. savea writing " Cosh " ond " C. Fleming," which would take two lines TRR PRACTICAL BOOK-KBBPBB. GsiBb Amounti broutjht forward 10 T(. L. Coffee k Co. 17 Mei'cbandiHe To SundrieK To J {auk of Commerce " \V, D. Mattlicws & Co. 19 Merobaudise To L. Coffee k Co. Merchandise To Bills Payable 21 Casb Casb To Merchandise To Mercb-indisc 28 Gash Merchandise Merchandise C. Fleming - To Merchandise __ 24 To ICdwd. Trout 26 To W. D. Matthews k Co. 27 Edwd. Trout To Merchandise 28 To Bank of Commerce 28 24 28 24 24 28 24 28 24 28 28 28 28 I 28 28 28 24 28 24 25 28 24 24 Amounts forirard o*. I 18028 800 176 471 875 298 96 00 00 00 90 69 908 00 142 00 284 80 180 808 00 20 18028 800 100 76 06 00 00 00 471 876 298 908 00 96 69 00 142,00 284 180 808 80 00 20 20000 171 681 601 200 00 17168 50 I* :'■ I if THE PRACTICAL DOOKKBEPRR. Amiiuntf hniiiiiht j'orward • 25) Cash • Expenso To C. Fleming 80 To CftHh 28 26 26 28 PS. 17108 ''0 1710HT)0 III i •2«()00i ' 250 00 188 20 nr.uMo 188 20 itmcIto POSTlNCr TO THE LEDGER. Janmauy '2mi {See Enlnj In •louinnl, fxiiifiiO.) On the Dr. side of "Cash" Arroiint (Lccl;,'cr, folio 2H) write tlio words '•To Stock," iJiJOOO. Then on the Or. siile of "Stock " Acnnuit ^Ledger, folio 28) write tiie words "By Cash," *>5,000. January Urd (See Kntiji in Jdiinial, jiaije '.'0.) On the Dr. side of "]5a\k op Commkuce" Account (Ledger, folio 24'^ write the words "To Cash," $t(ll»0. Then on the Cr. side of "Cash" Arrount (Led- ger, folio 28) write the words "By ISank of Commerce," $10(10. .Tanuary Ith ( Si'f Kntrij in Journal, ijiir/e JO). On the Dr. side of "Mkrchandise" Anount (Ledger, folio 28) write the words "To Enwn. Thout," SI 06.80. Then on the Cr. side of " Edwd. Trout.' s " Acminit (Ledger, folio 21) write the words "By MKROHANDihB," $1%.80. -TanUauy Hth (See Entr;/ In Journal, i>a !.uiiit.l-()ain.(33)Lf. l3fij{ 31 1 ll.v Hnlaiicf (34) |S081 fi031 00 36 96 36 CASiJ. Jan. To Stock - . •' McTi'liaiulifK do. •• L. CofTec A c '• Mcri'liniuliw ! { Feb. 1 To bul. (Inventor) 4) I'JG 80 219 !t6 (j'.l-) 00 713 CO 17(i 00 471 00' 87.5 !I6 284 80 180 00 107 4() 3!)7« 98 642 00 Jiui. I 6 Uy Hills IJcccivnble ' 7, :12 121' I 21 27 81 Cash L Colft-e & Co Sundries • - Ciisli - - . do do. ... C. Fleniinj; Bal.Inventoryt(3) 1 201 120 ,20: |20j 1 21' 21 21 21 246 99 199 1 20 500 1 00 740 00 298 1 59 908 I 00 142 1 00 303 ' 20 042 lOO 3979 98 •Fimire.'* coiiiiiiM after " Halauiti " rojireHeiit thoonler of cliiMiiit,'. I.\ii luveiitiiry reprcsi'iits. t^fiicnilly, iiroprrty on hand as above. It may hIho ref>reHent » debt owii'H to us or owini; liy UN, as iuterel ivririUMl on notes, iin|>ai(l rent, ront not duo, nitttrcst duo on BillK I'ujable, i(:e., and niav, therefore, sliow either an Asset or Ijiability, .\n iuvc^ntory of Ko'"'" en hand 16 arrived at by weitjLiu),', nieahuriug or eountintj the artieleH on band, and atlixin^ thereto their value which is usually tbo price at which they were purehasod. t i 24 THE PRACTICAL BOOK-KEEPER. Db. BANK OF COMMEKCE. Cr Jan. 3 8 To CaBb .... "do. . - . . 3V 20 20 600 00 00 1 Jan. It 11 17 28 By Merchandise • - do. - - - " E. Trout • - - JF 20 21 21 1 713 100 200 00 00 00 1 ■ .U • Bulancu (7) ■ - :ilN7: (lu , ^ 4500 00 __^ 4500 00 Feb. 1 To Balance (8) - ■ 8487 00 1 EDWARD TROUT. Jan. 28 .il To Bk. of Commerce 21 200 2H1 00 Jan. 4 By Merchandise - - 24 " do. ■ - 20 21 196 284 80 80 481 60 ' 481 60 Feb. 1 By Balance (10) - - 281 60 L. COFFEE & CO, Jan. 12 ! To Merchandise . "20 •• ' Balance (ID i - 500 •271 00 00 Jan. 16 19 By Merchandise - . do. - • 21 21 300 471 00 00 ^ 771 00 _ 771 00 1 Feb. 1 By Balance - - • - 271 00 BILLS PAY/J^LE. ■M To Uii-lii;;LL \ I'll l.-.TO 1 1 Jan. 10 20 1570 96 , 1 Feb. 1 By Merchandise - - 20! 695 00 do. ■ - 21| 875 96 1 1 1570 96 By Balance (14) - . 1 1570 96 BILLS RECEIVABLE. Jan. To Merchandise - I 20 246 I 99 W. D. MATTHEWS & CO. Jul HL To Balance (15) 1 256 00 Jan. n 26 — 256 00 Feb. 1 i do. By Balance (16) •n 21 76 180 ! 256 256 00 00 00 00 THE PRACTICAL BOOK-KEKPER. Dr. C. FLEMING. Cb. Jan. il Feb. 14 27 ~1 To Merchandise do. ■ - To Balance (18) • 20 21 240 303 J)43 293 1 00 20 20 20 Jan ( 29 By Cash • lialanco (171 • 22 250 2U3 643 00 20 20 EXPENSE. 481 60 281 60 300 471 00 00 771 00 271 00 B95 00 96 i70 96 70 96 6 00 00 s 00 5 00 Jan. To Cash 20 13 00 Jim.: 22 1 133 20 j 146 20 ;tl Bv Loss* Gain ( 19) Lf 26j 146 146 1 20 00 LOSS AND GAIN. Jan, 31 To Expense (20) Lf. htook ca) Lf. 25 146 20 1 Jan. 1 31 •23 •21 -20 i -T 167 46 1 1 = By Merchandise (6) Lf. 23 167 46 167 46 INSTRUCTIONS FOR TAKING TRIAL BALANCE ON .JANUARY 31, 1882. 10 'The first thing to be done is to foot the Dr. aud Cr. sides of each account in the Ledger, placing the footings in small lead pencil figures close up to the line on which the last item is posted. "'"When there is but one item in an account (on either side), no pencil figures are necessary, as that item is the footing of the account, as in Bills Receivable Account, (Ledger foho 24). After having gone through the accounts in this manner, write the name of each account in its order in the Ledger, in the Trial Balance Sheet, i" /piecing the Dr. footing in the Dr. column, and the Cr. footing in the Cr. column, and the Ledger page of each account, in the column on the left. ^ ° * When the Dr. and Cr. footings of an account are equal, or in other words, when the account balances, it is omitted from the Trial Balance, i "ajf the Trial Balance is cor- rect the Dr. and Or. sides will be equal— and will resemble or correspond with, the following example : 26 THK I'RAOTICATi BOOK- IvEEPBB. TEIAL BAIiANCE TAKEN JANUARY 81, 1882. L.F. 1 DR. CR. 28 Stock 5000 00 28 Cash ..... 7597 79 4866 1(5 28 Mercbantlise .... 3812 52 3387 9^ 24 Bank of Cora) ucice - 4500 00 1013 00 24 Edward Tiou( 200 00 481 60 24 L. Coll'ce & Co. 500 00 771 00 24 Bills Payable .... 1570 96 24 Bills Receivable 246 99 24 W. D. Mattbews & Cu. ■ 256 00 25 C. Fleming .... 543 20 250 00 25 Expense Proof 140 20 17546 70 17546 70 TRIAL BAIiANCE. iioTbe object of tbe Trial Balance is to test tbe correctness of tlie Ledger, * ' 'it being an abstract of tbe Ledger accounts. ' ' ^If tbe sum of tbe Dr. sidet equals tbe sum of ihc Cr. sides, tlie Iiedger is assumed to be correct, altbo' ' • ^tbe Trial Balance is not a conclusive test of tbe correctness of tbe Ledger, ' '*but merely proves tbat for every sum entered on tbe Dr. side, a corresponding amount is entered on tbe Or. side ; ' ' "for (sxample : we bave tbe Journal Entry "Casb Dr. $100 To Bills Receivable Cr. SIOO." Now tbe amount carried to tbe Dr. sido of '> Casb " migbt bave been carried to tbe Dr. side of any otber account, and tbe amount carried to tbe Cr. side of " Bills Receivable," migbt have been carried to tbe Cr. side of " Bills Payable." This would make tbe Ledger accounts balance and tbe "Trial Balance" apparently right, but tbe final result would be wrong, by reason of tbe error we have supposed to bave taken place in posting. ERRORS IN TRIAL BALANCE SHEET. * ' * We do not intend giving rules in this Work, for tbe detwiivn of errors ia Trial Balance Sheets, ' ' 'because we do not think such rules of any value where the Book-keeper lias to look over a Ledger of some five or six hundred pages containing as many accounts. '■'^We think the only true way to discover eiTors in 7'rtal BaUnu;' is by a careful examination of all the items from the date of the last Trial Balance, in the following manner : 'I ''Examine lirst the Journal entry, in order to be certain that the debits and credits are equal, then see that these debits and credits are transferred or posted correctly, not only to the prftper arroHntu, but to the proper mi«; nf the accounts iu tbe Ledger. Upon tiudiug the items to be correctly posted as above, place a check mark, thus v'> iu the Lodger, opposite tbe amount, 'so^^jj^ if, after thus cbtcking, you find an item not checked, you may conclude either that it should not be there, or that it has been posted twice. Every item must be checked until tlie error is discovered. ' " i jf j-qh .^yq posting from " Cash Book," " Bill Book," " Invoice Book,'" " Sales Book," Ac, you can employ tbe same operation of checking as in the case of the Journal. An examination of the postings from the various books without placing the check-mark ( v' ) will not do; because without such check, you cannot be certain that you bave examined all tbe itums in the Ledger. f.l«: THK PRACTICAL BOOK-KEEPI.H. 27 TRIAL BALANCE BOOK. lu actual business a book, called Trial Balance Book, is kept for the purpose of preserving a record of Trial Balances. This book is ruled for twelve Dr. and Cr. money columns for tbe twelve months of the year. In making Trial Balance for the first mouth, the names of the accounts in the Ledger that do not balance are written to the left of the money columns, with the respective Dr. and Cr. footing of each, in a Hue with the account, in the first Dr. and Cr. columns. lu m.ildng the Tri.il Balance for the next month, it will only be necessary to write the Dr. and Cr. footing for this month in a line with the account, in the second Dr. and Cr. columns, and so on for each succeeding month, in like manner. Any new accounts opened during the second month must be written under those of the first month, with the Dr. and Cr. footing of eacli extended in a line with the account, in the second Dr. and Cr. columns, and so on, in like manner, for new accounts opened in each succeeding month. (See form at the end of July.) CLAS3IFTCATI0N OF ACCOUNTS. '-^Accounts are divided into two goueval classes, vi;5. : •^ri^p.^^L and Repeesentativk. '2 'Real accounts arc those whicli show Assets and Liabili- ties, as " Cash," " ]')Ills Receivahle," " I^ii-ls Payable," " Personal," &c. '-■■^If the debit side of any of these accounts bo the greater, the excess is Liabilities. '-'■The difl'ercnce between the Assets and Liabilities of the concern is its Present Worth or Means. Representative Ace- ktnts '-■'are tliose which show the Gains and Losses of the business, as •'Mer- chandise," " Real Estate," " 1\ti;iii:st," "Expense," " Comjiission," &c. ^2 8if the debit side of any of those accounts be the greater, the excess is Loss to tlie concern. i'J'»lf the credit .side be the greater, the excess is Gain. ••""'The Net G.un is found by subtracting the sum of the Ldsses from the sum of the Gains. '•"The Net Loss is found by subtracting the sum of tlie Gains from tiie suai of the Losses. ' •' - .\nother Method 'if finding the Net Gain, is to subtract tlie Net Investment from the Present WoRTu; '-'^aiid the Net Loss is foiuul by subtracting the Present Worth from the Net Investment. Again, '•»*If the Net Gain be added to, or the Net Loss subtracted horn the Not Invostmonf, the result will show the Present Worth. STATEMENT OF LOSS AND GAIN. Lo.*i3. Gain. Material taken from 1 sot; Mpi'ohaii'lisp Expense Stock ! Cr. — Procccils from salps Jnvcntoi V, (un-olil) - Dr. -Cost Total 8.137.98 642.00 .S070.t)8 ■3812 iVi (iaiii Pr. — Cost or oiitliiv Amount invrstotl Gnin iiddod Net (lain nr dif'fr< iit' Present Worth - ■'jooo.no 21 .2(5 fi021.26 Hfi 20 21 26 »l(i7 46 i 167 1G7 46 IT m U i 28 THE PRACTICAL BOOK-KEEPER. STATEMENT OF ASSETS AND LIABILITIES. / Assets. Liabilities. f'aBh - Balance on hand 2'i31 63 Kills Receivable *' " 216 99 Merchandise - 11 •*_..-.. (■.•12 00 0. Fleming Amount indebted to me - 293 20 liiink of ('(jmniprce " . . . . .3487 00 I'.Jwnrd Trout - indebted to him - - . . 281 60 li. Coffee A Co. . to tliem - - - . 271 00 Hills ravaltle - " niv Prom. Notes outstanding - - 1570 96 W. D. Matthews A Co. indebted to them .... PilTcrenee between Assets and Liabilities, 256 00 or Present Worth ( Difference between Assets and Liabilities, ' or Present Worth - - »5021.26 7400 5021 26 82 7400 82 i PHonr - Net Investment - 5000.00 1 " Gain added - 21.26 =:; #5021.26 EULES FOK CLOSING THE LEDGER. '3»The Accounts showing Assets and Liabilities in the-Ledger, are not supposed to be closed up at the end of January, ""although the fact of having closed them does not disturb what may be called the Ledger's equilibrium, ' 3'as the difi'erence between the sum of the balances brought down on the Dr. side (as in " Cash Account," Ledger folio 28), and the sum of the balances brought down on the Cr. side (as in Bills Payable, Ledger folio 24) is the Present Worth, whicli is brought down as a balance on the Cr. side of "'Stosk," (See Ledger folio 28). ' ^"Neither is it necessary to make out the two previous statements, but we think it advisable for students to make out the Loss and Gain statement at the end of every month up to May, and close the account in the Ledger, show- ing Gains or Losses, and carry the Net Gain or the Net Loss, as the case may be, to the Proprietor's or Partner's account, thereby showing the Present Worth at the end of each month. ' ^*It is customary in business, at least once a year, to take an Inventory, and make out a Balance Sheet showing the exact condition of the business nt the time, and then close the accounts in the Ledger. LOSS AND GAIN ACCOUNT OPENKD. '*''Open an account with "Loss and Gain " at the top of the first blank page following the last account in your Ledger, if you have not such an account already opened. ''"Accounts closed in tuk order in which they appear in Ledger, milMENCINO with THE FIRST ACCOIJIiT AFTER " STOCK " OR PaRTNERS' AcCOUNT. 14 2Ip the Account show an Asset or Liability, close it by entciinj on the smaller side in rai ink, the difference between the Dr. and Cr. footings with the words " To Jialance, or By l^alance," as the case may be ; this will balance the account ; then rule it off, (observe the form of ruling in the first set), and bring down the balance below the ruling on the opposite side to that in which it appears in red ink, prefixing the date and the words "To Balance" or "By Balance," as the case may be. If there is not sufficient apace below the ruling to bring the balance down, continue the THE PRACTICAL DOOK- KEEPER. 29 account on the first blank page, by bringing the balance over to the Dr. or Cr. side of the new account, with the words " T.^ Balance " or " By Balance from Ledger folio," and bo caiel'ul to place the balance on the opposite aide of the account to that in which it appears in the old account in red ink, ^■*-Ik TUE ActOLNT SHOW A LoSS OR G.MN, close it by entering on the smaller side of the account in red ink; the difference between the Dr. and Cr. footings of the account, with the words " By Loss and Gain," or " To Loss and Gain ;" then rule off the account, and transfer the difference to the opposite side of the Loss and Gain account, with the words " To or By " the account (naming it) from which it is brought. '■♦3 When the Account to be closed has an Inventory. If the Inventory is an Asset, enter the sum on the Cr. side of the account to which it bulougs, in red ink, with the words, "By Balance Inventory." If the Inventory is a LiAiiir.iTy, enter the sum on the Dr. side with the words " To Balance Inventory " in red ink. The difference between the sides (witu Inventory added) is a Loss or Gain, and will be closed with the words " To Loss and Gain " or " By Loss and Gain," as the case may be. '•'■♦To CLOSE THE LoSS AND GaIN AccOUNT. After all the accounts have been closed except Loss and Gain," and " Stock" or "Partners'" accounts; enter on the smaller side of "Loss and Gain " account, the difference between the Dr. and Cr. footings, (which is the "Net Gain" or " Net Loss ") with the words " To Stock," or " By Stock," or " To (Partner's name,") or "By (Partner's; name,") for his respective share of "Net Gain " or " Net Loss," as the case may be ; then rule off the account and carry the difference to the opposite side of " Stock" account, or to each partner's account, in Iditrfc ink, with the words " To Loss and Gain," or " By Loss and Gain," as the case may be. '*^To close "Stock" or Partners' Account. Enter on the smaller side the difference between the Dr. and Cr. footings oi the account, with the words " To Balance," or " By Balance," (which is either "Present Worth," or " Insolvency ") in red ink, then rule off the account and bring down the Balance, below the ruling, on the opposite side to that on which it appears in red ink, with the words " To Balance," or " By Balance," as the case may be. This completes the closing of the Ledger. QUESTIONS FOR REVIEW. 'What is Booli-kcpping ? ' » When is Cash credited ? "llow many systems of Book-keeping are "Wiiat is meant by Cash? there ? '♦Wliieh side of the Cash account can never •Name them ? be the greater ? ♦Describe SiNdi.E Entuv? '"Why? ♦Describe Ducdle Enthv ? "What is the Cash on hand called in rela- •What is an account? tion to the business ? 'How many si.les has an account? "When are persons debited? 'What is the left-hand side of an account » " When are persons credited ? called ? •'What is meant by " Pehsonal" accounts? •The right-hand side? ««For what object are " Personal" accounts > " What is meant by the terms Dr. and Cr ? kept ? ' 'When is Cakii debited? Note.— Tlio iinawora to tlio above (luestions are to be written out by the student, and handed to the teacher beloru couimeucmg the next mouth. • w "FV'Bi m -9 •\ ^^1 80 H I Tin; I'llACTICAL BOOK-KEEl'lJU. DAY BOOK. February 2n(l, 1882. Sold W. P. Howland & Co., on account : 70 Jiarrels XXX Flour @ §0.00 - - - - 240 BuHhels Oats @ 5-lc. 100 " Barley @ Glo. o _ ^ Deposited in Bauk of Commerce : Cash 4 Bought of P. & F. A. Howland : 50 Barrels XXX Flour (7v. §G.00 - . . - 50 Bushels No. 1 Fall Wheat @ 1.20 - - - Gave in part payment my cheque on Bank, $200 Balance to remani on account, - - - $160 5 Gave Edwd. Trout my cheque on Bank of Com- merce in full of hia account Bought of A. V. DeLaporte & Co. : 60.^ Barrels Mess Pork @ SU 240 lbs. No. 1 Cheese @ 12J-c 1 1 Barrels Salt @, §2.80 ' Gave in ]- ,^ ment my note @ 3 months. 7 Bought of W. D. Matthews & Co. on account : 25 Banels Flour @ S5.50 150 Bushels Corn @ 70c. 49 " No. 1 Fall Wheat @ §1.20 - - 8 Deposited in Bauk of Commerce : Cash 10 Bought of J. & A. Clark for Cash : 15 Bales Pressed Hay— 1".)0, 294, 275, 810, 157, 118, 250, 294, aOS, 210, 300, 210, 400, ';")2, 175 = 3883 e' §13.50 per ton . . . . 27 Bushels Corn @ 70c. ••.... 11 Sold Edward Trout on account : 15 Bales Pressed Hay, 3883 @ §15.75 - - 240 lbs. No. 1 Cheese @ 14c 25 Barrels XXX Flour @ §0.10 - - . . 420 00 129 00 04 00 800 GO 707 00 00 00 80 25 00 30 137 50 105 00 58 801 20 21 18 90 80 58 8360 15250 61360 1000 00 860 00 281 60 762 80 301 30 1000 00 45 11 216 68 THE I'KACXICAL DOOK KKbPER. 81 -12- Pre-paid my note in favor Crane & Baird, due Mav 14th next Discount off, 92 days @ % Balance paid by my cheque 1 3 Sold L. Coffee & Co. : 150 Bushels Corn @ 82c - - - 49 " No. 1 Fall Wheat @ 60 Barrels XXX Flour @ $6.50 Eeceived in part payment, Cash, - - Balance to remain on account - - - -14- $1.84 $300.00 213.60 Bought of Furness & James : 24 Barrels Mess Pork at $15.20 - 500 Lbs. Dairy Cheese @ ll^c - - Gave in payment my note at 2 mon^^ s. -15 Bought of J. & A. Clark on account : 10 Bales Pressed Hay— 291, 408, 240, 310, 150, 250, 207, 510, 210, 504 = 8080 @ $12.50 per ton 50 Bushels Barley @ 65c. 72 " No. 2 Spring Wheat @ $1.20 - -10- Sold W. P. Howland & Co. on account : 72 Bushels No. 2 Spring Wheat @ $1.27 50 " No. 1 Barley @ 72c. - - - 90 " Corn @ 80c. ..... -17- Sold P. & F. A. Howland on account : 27 Bushels Corn @ 80c. .... 50 " No. 1 Fall Wheat @ $1.24 -19 Received of W. P. Howland & Co. : Cash to apply on their account - -20- j Deposited in Bank of Commerce : I Cash 21- Bought of W. P. Howland & Co. on account : 49 Bushels No. I Fall Wheat @ $1.20 150 " Corn (?i), 70c 25Bbls. XXX Flour @ $5.50 - - - 10 084 51 49 12300 OS'OO 325 OOl 804 80 57 50 10 25 32'5() 80 40 9144 3000 7200 2100 62:00 58 105 80j 00 137150 695 00 613 66 422 80 18815 199 83 500 44 60 00 500 00 301 30 82 THE PRACTICAL BOOK-KEEPER. m -22 Bought of L. Coiroo on account : 50 Barrels XXX Flour @ .$G.OO - - - 240 Lbs. Clicuse @ I'iic - - - - . - 72 Bushels No. 2 Sprmg Wheat @ $1.20 — 2U- Gave J. & A. Clark my cheque on Bank of Com- merce, to apply on account 24 Sold F. & F. A. Howlard : 50 Barrels XXX Flour @ .$G.50 - - - 11 " Salt @ $2.75 150 Bushels Corn (rtj 82c Received in payment their note @ 2 months. -25 Sold Furness & James for Cash : 240 Lbs. No. 1 Clioese @ 14c - fiU.V Barrels Mess Pork @ $16.25 600 Lbs. Dairy Cheese @ 12Jc - 20 Withdrew from business, for private use ; Cash Deposited in Bank of Commerce Cash 27- Bought of Edward Trout : 15 Bales Pressed Hay- 810, 157, 118, 290 294. 275, 250, 294, 808, 210, 800, 210, 400 21)2, 175 = 8888 @ $18.50 per ton - - 100 Bushels Barley @ 00c. 240 " Oats @ 50c. Gave in part payment my note @ 2 mos. for $150 Balance to remain on account, - - - $50.21 28- Sold Furness & James on account : 21 Barrels Moss Pork @ $17.50 25 " XXX Flour @ §6.10 Received of C. Fleming : Cash in full of account to date 800 00 80 00 80 40 825 00 80 25 128 00 33 820 CO 08 68 75 20 00 120 420 152 21 00 00 00 50 416 40 100 00 478 25 917 250 500 98 00 00 20G!21 572 6') 298 20 THE PHACTICAL nOOK-KREPEn. 83 -28- Piiiil tlio following I'lxpeuscs, iu Cash : Clerk hire, oue mouth - - - - Bent " .... Stamps, stationery, Ac. ■ - - iNVr.NTORY. I'liO r.usliels Oats ^ fiOc. = 15 liales P. Hay, 51888 lbs. (" $lM.r)0 i)er ton - rr 10 ball's P. Hay, 9080 lbs. ((I ."jil'i.no per ton - = 49 Bush. Fall Wheat ^l.iiO = 100 " Jiarlcy (ncil jiiimrs at tlie bottom of each account for that month, would re])resent the Ur. and Cr. footings of these accounts. For February you would foot the Dr. and Cr. side of each account, and add the footings of .January, and place the sum in small jirnril jiiimrs at the bottom of each account (^same as in January) ; then these small priicU jii/nrcs would represent the Dr. and Cr. footings for January and February. '^'^ The student will make out a Loss and Gain statement similar to the one given on page 27, and close accounts, showing "Loss and Gain;" tJien close the " Loss and Gain " account, and bring the difference or balance of same, to the Dr. or Cr. side of " stock," as the ca-se may be. '■*'•' It will not bo iicoe?- sary to close accounts showing Assets and Liabilities. If the student does not jet thoroughly understand balancing these accounts, he should consult the rules given for closing the Ledger. - QUESTIONS FOR REVIEW. I; Mil •'What do the items on the Dr. side of Pkh- KO.N.M. accounts icproscnt ? •♦What do the items on the Cr. side of Pi-.R- soNAi. accounts represent '.' •'IftheCr. side of rKHso-VAt. accounts is in excHss, wliat is the position of tlie pi'ison towards the business, and what is this excess in rehition to the business? •Hiive the rule for debitinj,' "Bills ItECEiv- Alil.K ?" •"Give the rule for crediting "Bills Receiv. AULE." ' 'What is meant by " Bills Eeceivadle?" ••Which .side of "Bills ItECEivAnLE " ac- count will be the greater, if there is any dilTeience ? »»Why? "Wliivt is the balance of "Bills Heckivahle" account in relation to tlie business? ""Wliat are tlic conditions for this account to balance ? "Give the lule for debiting " Bills Pay- able"? •"Give the rule for cred'tiiig "Bills I'ay- aiu.e" ? ""What is meant by " Bills Bayaiile"? ♦"Wiiicli side of this account will be the greater, if there is any difference? «>Why? Note. — Answera to aVjive queitioas aro to bo written out by stu louti bjforo cominouoiu,' next month. 84 THK FliACXIOAL UOOK-KCEPKU. Ill ,1 . Pit I tit.' ll it DAY BOOK. MaHCU l8T, 1882, Sold J. D. Laidlaw : 24U BuhIi. Oiit.s (??, 57c 4!) " No. 1 Fall Wheat (n>, $1.«0 - - 100 " " liiirley (g 7Uc 72 " No. 2 Hpring Wheat (>(• !?1.27 - - Recoivod iu imyiuout his uoto @ 8 mouths. 2 Sold W. IT. Knowlton & Co., on acct. : lu Bales Pressed liny— 2!J1, 210, 210, 810. 2!)4, 250, 308, 21)2, 2iiO, 118, !iOO, 400, 175, 157, 275 = yH8;nhs., (,/; SKi.OO j)ei-t()i) - - 10 BalH3 Blessed llav— 240, lilO, 510, 21(i. 504, 201, 408, 150, 250, 207 = 8080 lbs., (()j 0144 I I ] 00 00 15! "00' .">(;oo 70 00 1128 8U4'73 07 50 58 80 37 8G194 81 OO: 28101 54 IG 11 74 445 :m; 8759(> 12 1G3 42 244 00 ! 472 00 ' 72;oo 124'80; 912 80 THE PRACTICAL DOOK KEKl'En. 35 9 Sold Edward Trout : 80 JJuhIi. Uve ('i 80c 420 LbH. Laid C" 17c 200 JJusli. No. 1 Fall Whoftt (^ $1.H0 ■ - Ileceived in payuieut Lis uoto (^ two mouths. 10 E. E. Gallaf,'lier has pre-paid liis note due April 'Jth next Discouut for tliirty days @ % Eeceived his cheque on Bank of Hamilton • • 11 Sold L. Coffee & Co. on account : 200 Bush. IVas (.i H Ic. .... lUl " No. 1 Fall Wheat $1.80 -13- Gave W. D. ^latthews & Co. my cheque on bank, to apply on account 14_ Sold James Park on account : 510 Lbs. Dairy Cheese @ lie -15- Gave L. Coffee k Co., Cash in full of account up to March 1st -IG- Bought of L. Coffee : 150 Bush. Corn (^. 70c. - - • 70 Bbla. XXX Flour (^ $5.70 ■ 50 Bush. Barley @ G5c. - - • 90 " Corn (ai 70c - - - ■ Gave in part payment my cheque - Balance to remain on account - • -17- $.S00.00 2'J'J.50 Bought of James Park : 11 Bbls. Salt @ $2.80 240 Lbs. No. 1 Cheese (? 12ic 50i Bbla. Mess Pork @ $14.00 290 Lbs. Lard (T/i 13c Gave in part payment my note @ 2 mos. for $400 Gave my cheque for balance 400 18 Bought of W. D. Matthews & Co. on account : 25 Bbls. XXX Flour @ $5.50 .... 72 Bush. No. 2 Spring Wheat @ $1.20 - 64 col 71 Id 2t)()00: 1 22 215 77 IGHOO 135 20 105 00 399 '00 3250 osloo 25 30 80 loo 707100 37 70 187 86 50 40 395 10 24 G 99 303 20 400 00 (5 60 473 71 599^ 800 00 223 90 i! 1 In M m i'im TUB PRiiOTIOAL BOOK-KBKI'EB. SO Sold J. D. Laidlaw : 72 liuHh. No. 2 Sprinrr Wlicat fi> $1.27 - • 25 UblH. XXX Flour (<»! $0.10 !)U 13uHh. Corn (/f) HOc. Received in part paymeut, Cash, - - - ^200.00 Balance to remain on account ■ • . . 115. U4 21 Sold W. P. Ilowland k Co., on account : HU Bbls. XXX Flour ('i $().U0 120 Bush. Barley @ (J5o. 22 Sold W. II. Knowlton &, Co. on account : 100 Bush. Corn oi HOc 129 " No. 1 Fall Wheat (w. .«il.81 - - - 70 Bbla. XXX Flour @ $0.00 28 Pre-paid my note to A. V. DeLaporte, due May 9th next Discount for 17 days (if> per cent. Gave my cheque for balance 24 Bought 01 James Park on account : 500 Lbs. No. 1 Cheese (.i\ Uhu - . . . . 25 Bbls. Salt & §1.80 - ' 25 Sold P. & F. A. Howknd : 150 Bush. Corn (7,\ 82c 50 " No. 1 Barley © 72c Received in payment their note @ 2 months. 27 Sold A. v. DeLaporte on account : 240 Lbs. No. 1 Cheese @ 14c - - - . 25 Bbls. Salt @ $2.20 Bought of Furnoss & James on account : 29 Bbls. Mess Pork @ §14.75 - - 24 " No. 1 Mess Pork (//; $16.20 28- Bought of J. D. Laidlaw : 49 Bush. No. 1 Fall Wheat @ .$1.20 50 Bbls. XXX Flour @ |G.OO - - 240 Bush. Oats @ 50c Gave in part paymeut my cheque - - Balance to remain on account - - - §250 00 228.80, 9144 15250 72 00 480 00 78 00 8000 420 00 5 89 750 41 57 50 00 123 00 8G0O 83 GO 65 00 427 304 75 80 58 80 80000' 120 00 816 04 008 99 702 80 102 50 159 00 88 60 792 55 478 80 THK lilACTICAL UOOK-KEKI-Klt. 37 29 Gave I'urneHs k Jfunos my ohcqiio on liuuk to apply on accotiiit Deposited iu Dank Cash . - . !!()- Received of W. II. Knowltoii ,v C"(t. : Casli to apply on account - - - Sold FnrnoHS fc Janirs : IT) llains, '2r.(i L1)H., (7? l.T'.c '2!)() Ll)s. Lard (« ir.U; - -' Cn J Hbls. Pork ( Rccoivpd iti part i)aymi'iit clicqiio ou Moiitroal liiuik for *r)()l).()() Tiieir note Qi 8 moutliH for balance • • 435.61 Sold P. k F. A. Ilowland on account : 4!) DuhIi. No. 1 Fall Wheat t" $l.'^i - 240 " Oats (vr rA',c. - ... - 81 ___ Paid the following Expendcs in Cash : One ton Coal •' Month's Picnt " Month's Salary to Clerk • Postage stamps, \c. - - - . sn OH 4 1, 1)5 820 BO r.5 on 25 134 'I' (0 |Lnventory,< 24 BMs. No. 1 M. Pork c 15.2(1 ='!!(!! HO 2i) " " " ("14.75 = 427.75 50 Bhls. XXX Flour ci (LOOz^ ;•!()(). 00 500 lbs. Dairy Cheese i^llhc, = 57.50 Total . . . Net f,'ain f )r this montli 81150.05 - .S28:iG2 50 50 00 50|00 214 200 800 00 00 COO 00 oy.-j 200 51 00 lOH 04 In the mouth follo\vinf», the Day Book and Journal are combined. Make the Journal entry, &n\ immediately after write the Day Book entry. (See April). QUESTIONS FOR REVIEW. < • What docs the Balance of " IJn.i.s Tavaule " show ? «"What is such balance in relation to tlio business? ««What are the conditions for this account to balance ? <»What is the rule for debitin},' " Mehcuax- WSE ?" •••What is the rule for crediting " Meuchas- I>ISE " ? <'Whut is meant by the term Merchandise. ■••What does the diilerence betwien the Dr. and C'r. side of this account show ? »"How are unsold goods treated in this ac- count ? "How is a (Iain shown in this account? » ^Anil how a Loss? »TE.— The answers to tho ubove questions are to be written out by the student before commen- cing next mouth. fl } 4 I !1 88 THE PRACTICAL BOOK-KEEPER. ii I I ! I ; i 'i;j m JOURNAL-DAY BOOK. April 1st, 1882. Dr. James Park, To Merchandise, - - Sold him on account : 24 Bbls. No. 1 Mesa Pork @ S17 $-108 2!i Bbls. No. 2 Mess Pork @ $10 404 yUO lbs. No. 1 Cheese @ 13c 05 ^ a W. p. Howland & Co., To Merchandise. - - Sold them ou account : 50 Bbls. XXX Flour @ §0.50 __ i __ Merchandise. To Sundries, - Boupilit of J. & A. Clark : 200 Bush. Corn @ 75c. §150: 100 " Barley @ 00c. 00 To Bank, Gave in part payment my cheque " J. & A. Clark, Balance to remain on acct. Bank of Commerce, To Cash, - - - - Deposited in Bank, Cash, 500.50 : ^ Merchandise, - To Furness & James, Bought of them on acct. : 400 lbs. Prime Butter @ 22c. $88.00 2501bs. No. 1 Cheese @ lie - - - - 27.50 10 bbls. Goderich Salt d' §1.75 17.50 __7 -! Merchandise, To Sundries, Bouprlit of P. fc F. A. Howland : 100 Bush. No. 1 Fall | * ; "Wheat S $l-20 - $120.00 ' 150 Bush. Corn (^; G5c 97.50 200 " Peas c" 75c 150.0()' To Bank, Gave in ]mrt payment my cheque ---.-. " Bills Payable, ^My note @ 3 mos. for balauce Forward ....... 937 GO 325 00 21000 500 50 133 00 807 50 Cn. 937 00 325 00 150 00 GO 00 500 50 183 00 200 00 I 107^50 2478 00 247300 THE PRACTICAL BOOK-KKKPEP. 89 Amounts funiurd 9 Sundries^ To Merchandise, - • Sold A. V. DoLai)nrte : ir,0 nmh.Qi,ni(a 7i3c $109.50 rJU " No. 1 Bar- ley @ 70c. - - - - 70.0( Eoceiveil in part pay- ment : Cash, Cash, A. V. DeLaporte, Balauco ou acct. 10^ Cash, To Merchandise, - - Sold L. ColVoc & Co. for Cash : 100 Bush. No. 1 Fall AVlicat t'? 31.2H - - $l-_'8.00 200 Bush. Coru e' SOc 100.00 12 Merchandise, To Sundries, - Boui^ht of J. D. Laidlaw : lOOBush. No. 1 Spring ^Vheat ([> .'?1.21 - - $124.00 150 Basil. Barley (a;, GOo 90.00 Gave iu part payment, Ca.sh - To Cash, " J. D. Laidlaw, Balance ou ucct. li _ Merchandise, To Bank of Commerce, Bonu'litof W. P. Ilowlaud & Co.: 20 Bhls. Snpeiior Extra j Flour ( 80c IGO.OO 25 Bbls. XXX Flour @ $5.70 .... 142.50 140Bu.sli.No.2Spring Wheat (4 = $150.00 45.88 124.00 120.00 90.00 !?529.88 Net Gain this month, $175.13. 864 00 150 OC 231 00 103 IS 7645 864 12 00 150 00 281 00 108 18 8493 25 8493 25 THE PRACTICAL BOOK-KEEPKR. 48 12 DO 00 00 So far, we have given the Gain upou oach month's business. In order to do this we must give the amount of goods on hand at the end of the month, then close the account showing Loss and Gain, in Ledger, and balance this account (Loss and Gain), and bring the difference or balance to the Or. side of " Stock," thereby showing Piiesent Worth at the end of each month. ^^''In actual business we should not thus close the Lobs and Gain account, {i.e., at the end of every month) ; but merely take a Trial Balance and enter it in the Trial Balance book, and go on with the business of next month. If we had adopted this plan and had closed the Loss and Gain account at the end of Ajiril, we should have found our Gain at that period to be equal to the sum of each month's gain added together. QUESTIONS FOR REVIEW. "'For what is Interest account debited? "«For what is it credited? " 'What is meant by Interest ? ■"> Under what conditions does this account exhibit a Gain and a Loss ? ' 'For what is Stock account debited ? ' "For what credited ? "What is meant by the term " Stock?" "What does the difference between the Dr. and €r. sides of this account show ? "'For what is Partners account debited? ■ "For what credited ? "What is meant by " Pautners ' " account ? '"Give the rule for debiting Commission, Storaoe, Insuranck, &c.? "C-ive the rule for crediting these accounts ? "What is meant by the term " Assets ?'■ "< What is meant by the term " Liabilitiks?" • * What is meant by Loss ? » " What is meant by Gain ? " ' What does excess on Dr. side of the Led- ger show ? • "What does excess on the Cr. side of the Led- ger show ? n^ Note.— The student is required to write answers to the above questions, and hand them to tUo teacher for inaijectiou, before goiiit! uu with the next mouth. 13 ■ E 25 44 THE PRACTICAL BOOK-KEEPER. NEGOTIABLE PAPER. 1* "Negotiable Papeii consists of an order, or promise to pay a certain anm either of ironey or goods, which paper may be transferred from one to another eitber by endorsement or delivery. •* 'In order to bo negotiable the amount must be payable to the "order" of the payee, or to " bearer." Such paper embraces Bills of Exchange, Promissory Notes, Certificates of Deposit, Bank Bills, Bank Cheques and Orders to pay " in goods." Paper not made payable to the "order " of the payee, or to " bearer," is not negotirblo. PROMISSORY NOTES. A Promissory Note is a promise in writing to pay a specified sum at a particular time, to the person therein named, or to his " order " or to " bearer." 1S3 (Negotiable). $700 Toronto, July 1, 1882. Four months after date, I promise to pay Edwaid Trout, or order, Seven hundred dollars, 1 ,'!• ' aluo received. Connor O'Dea. 153 $400 (Not Negotiable). Toronto, July 1, 1882. Four months after date, I promise to pay R. E. Gallagher, Four hundred dollars, for value received. D. M. Moore. *»* (Joint Note, Negotiable). $100 Toron-.o, July 1, 1882. Three months after date, we promise to pay W. H. Morris, or order, at Canadian Bank of Commerce, here, One hundred dollars, for value received. J. Davis, W. BuiE. ISS (Joint and Several Note, Negotiable). $200 Toronto, July 1, 1882. Four months after date, we jointly and severally promise to pay J. K. Cameron, or order, Two hundred dollars at Standard Bank, here, for value received. C. O'Dea, Edw. Trgdt. THE PRACTICAL BOOK-KEEPER. 46 in to lie ch it, de DEAFTS. ' * * A Draft is a written order or request made by one person and directed to anotlier requiring the latter (called the Drawee) to pay a certain sum of money to a third person (called the Payee) or to his order, or to bearer. ^ * ^ Drafts are usually employed as a medium of exchanfje between distant places in order to obviate the expense and risk of transmitting money. Drafts may be made with reference to time in three different ways, viz. : " At Sight," a specified number of days " after sight," or a specified number of days "after date," or they may be made " on demand," in which last case no " grace" is allowed. 128 Example 1. $500 (At sight) Toronto, Aug. 1, 1882. At sight, pay to W. H. Ash, or order. Five hundred dollars, at Standard Bank, here, and charge the same to the account of To H. GooDERHAM, Edward Troi't. Gait, Ont. 1 59 $500 Example 2 (With time from sight). Toronto, August 4, 1882. Thirty days after sight, pay to James Dunn, or order. One hundred dollars, at Canadian Bank of Commerce, here, and charge the same to the account of To Trout & Jay, . W. E. Grant. Meaford, Ont. 1 r. $300 Example 3. (With time from date). TouoNTo, August 7, 1882. Sixty days after date, pay to J. D. Laidlaw, or order. Three hun- dred dollars, at Domiuion Bank here, and chai'ge the same to the account of To W. D. Matthews & Co., A. V. DeLaporte. London, Ont. PARTIES TO NEGOTIABLE PAPER i^-Ar.E OF TWO KINDS, ORIGINAL AND SUBSEQUENT. The Original parties to a Promissory Note are two in number, viz. : — the Maker and the Payee. '"3 The original parties to a Draft are three in number, viz. : — tlie Drawer, the Payee, and the Drawee, '^s;^^^^^^ applies to Promissory Notes only, and means the person whose name is appended to the " promise to pay," or the person pri- marily liable. io4Payee is the person to whom the Note or draft is made payable, or the person whose name appears in the body of the instrument. In " Example 1," W. H. Ash is the Payee. 46 THE PRACTICAL BOOK-KEEPEB. ^ I ill i«»Dbaweb. — The drawer is the person who makes or signs the instru- ment requesting the party drawn upon (the Drawee) to pay the amount specified, to the Payee, or to his order, or to the bearer ; ^ " "and the maker of such instru- ment signs his name at the lowor right hand corner. In " Example " 2, " W. E. Grant " is the drawer. ""])icAWKii. — The drawee is the person upon wLom the bill is drawn, and who is expected to accept or pay. ' " "His name appears at the lower left-hand corner. In " Example 2 " " Trout & Jay " are the drawees. looAcoEPTANCE. — The acceptance of a draft means agreeing to its terms, and must be in writing. Tiie custom is to make it across the face of the instrument in red inlc. When the bill is presented to the drawee for acceptance, he should write across its face " accepted," writing also the date of acceptance if at or after sight, (this is not necessary if the draft is " after date ") and his name in full, or his usual siguature. ^ ' "^llc is then called the " acceptor " and the draft is now called an " acceptance." The draft given as "Example 2 " would be accepted by " Trout &. Jay." EXAMPLKS EXUIIiiri.NU JoUHNAI. EsTRIKS OF ALL PAUTIES TO DuAFTS. $800 . 7: a OS Toronto, August 1, 1882. Thirty days after sight, pa$ W.^I. Covert, or order, Three hun- ■""tS "-* (Payee) drcd dollars, value received, auA'^iarge the samo to the account of To J. K. Camekox, (Drawee;, Hamilton, Out. I fi c~, Edward Trout, (1) rawer). EDWARD TROUT'S ENTRIES (As Drawer). I 7 1 When he makes the draft and remits to the Payee to apply on ac- count. (Entry). W. H. Covert, (Payee) - To J. K. CAMERON,(Drawee) 800 00 800 00 W. H. Covert is Dr. because I, (Edward Trout), pay him, or get out of his debt (See rule for Personal accounts). J. K. Cameron is Cr. because he pays me or gets out of my (Edward Trout's) debt. When he makes a draft and disposes of it, for less than its value, receiving cash for its proceeds. i (Entry). ' Cash .... Discount - To J. K. Cameron, (Drawee) 290 10 00 00 800 00 Cash is Dr. because it is received. (See rule for debiting cash). Discount is Dr. because it is allowed to others. (See rule for debiting Int.) J. K Cameron is Cr. because he gets out of my (Edward Trout's) debt. \m d .) THE PIIACTICAL BOOK-KEEPKU. J. K. CA:HER0N'S ENTIUES (As Dhawkk). 47 1 73 (Entry). ^Vilen he accepts the draft made on him, on Edward Trout, (Drawer) 800 00 accouut. To Bills payable - L__ 800 00 Edward Trout is Dr. because I (J. K, Cameron) get out of his debt. Bills payable is Cr. because my (J. K. Cameron's) acceptance is issued. (See rule i'or crediting Bills Payable). 174 Wlien he pays, in ' cash, the draft made on i him at sight. | (Entry). Edward Trot-t (Drawer) To Cash i 300 1 00 800 00 Edward Trout is Dr. because he is paid by me, (J. K. Cameron). Cash is Cr. because it is paid. 175 ^Yheu he pays the draft in cash, less dis- (Entry). Edward Trolt (Drawer) :joo 00 1 count, instead of ac- To Cash - - - - 290 00 cepting it. " Discount - - - 10 00 Edward Trout is Dr. because he is paid by me (J. K. Cameron). (Sec rule for debiting Personal accounts). Cash is Cr. because it is paid. (See rule for crediting Cash). Discount is Cr. because it is alloweLl tome. (See rule for crediting Interest). 1 7C I! (Entry). When he pays the \' nccei)tance at maturity, j| Bills Payable in cash. To Cash - 300 00 300 ! 00 Bills Payable is Dr. because one is redeemed. (See rule for debiting Bills Payable). Cash is Cr. because it is paid. W. H. COVERT'S ENTRIES (As Payke). I 77 When he receives the draft to apply on ac- count, and gets it ac- cepted. (Entry). Bills Receivable - - To Edward Tbout 800 CO : 300 00 Bills Receivable is Dr. because another person's acceptance is received. (See rule for debiting Bills Receivable). Edward Trout is Cr. because he has paid me (W. H. Covert). (See rule fjr crediting Pirsonal accounts.) 48 THE PRACTICAL BOOK-KEEPER. W. H. COVEllT'S KNTUIES (As Payee). Continued. ■1: ■ m 178 When J. K, Cameron (Drawee) prepays tlie (Entry). Canh araft in cash, instead of il DiHcount accepting it. : , To Edwaud Tkout (Drawer) 200 00 10 00 800 : i Cash is Dr. because it is received. (See rule for debiting cash). Discount is Dr. because it is allowed by me. (See rule for debiting discount). Edward Trout is Cr. because ho has paid me. 170 When he buys the (Entry). draft from Edw. Trout (Drawer) at a discount Bills Receivable - • - 800 00 instead of receiving it To Cash - - - - , 290 OO on account, the drawer To Discount - • - i 10 00 allowing him the dis- i count. Bills Receivable is Dr. because a Time Draft is received. Cash is Cr. because it is paid. Discount is Cr. because it is allowed to me, W. H. Covert, Payee). tl Hamilton, August 10th, 1882. Sixty days after date pay JpgJ^D. Davis, or order, One hundred dollars, value received, and chul'^ Jhe same to the account of To J. Sadler, Toronto, Ont. o w O u as W. H. Dennis. 180 J. Sadler's Day Book and Journal Entries after accepting the above draft. Date. Aug. 11 Day Book. Accepted W. H. Dennis's draft on me at sixty days after date, favor of J. D. Davis, to ap- ply on account - - 100:00 Journal. W.H.Dennis(Drawer) To Bills Payable] Dr. II Cr. 100 00 100 00 The supposition is that I owe W. H. Dennis the above amount. Ho therefore has a right to draw upon me for it, requiring me to pay it«to himself THE rUACTICAL BOOK-KEEPKU. 49 " or oidur," or to some other person " or order." By accepting the draft I vir- tually agree to pay it, whicli is equivalent to Rivinp my Promissory Note, and I must therefore Cr. IJilLs Payable, and debit W. 11. Dennis, because I pay him by his own request througli another person named by iiim in his draft. '*MV. II. Dennis' Day Book and Journal entries (as drawer) making the above draft and getting it discounted at Bank of Commerce, receiving the cash less the discount. Datk. Day Book. Journal. 1 Db. Aug. 10 Drew on J.Sadler Toronto, at 00 days a/d., and discounted draft at ]3ank of ' Cash - . . . 1 Discount - - - j To J. Sadler! 1 98 1 Commerce - - - - 100 00 I Discount for G3 days 1 igl.Oo; Rec'd cash proceeds, $98.95. 1 1 1 05 Cb. 100 00 J. Sadler owes me the above amount due at the expiration of sixty-three days (inchxding grace.) Wanting money I draw on him, and get the draft discounted at Bank of Commerce. In getting the money from the Bank, J. Sadler virtually pays me, and therefore I must Cr. him. I debit cash be- cause I receive it, and I also debit Discount because I allow it. Should J. •Sadler not honor the draft at maturity, I should be held responsible for it by the Bank, and sliould have to pay it, in which case I should debit J. Sadler back again for the amount of draft as well as protest charges, &c. 1*2 J. Sadler's Day Book and Journal entries upon prepaying the above draft on presentation instead of accepting it. Date. Aug. 10 Day Book. Prepaid W. H. Dennis' draft on me at GO days a/d. favor of J. D. Davis - - - 100 00 Journal. W. II. Dennis, To Cash, - " Discount Db. 100 00 Cr. 98i95 105 I am not required to pay the above draft until the expiration of G3 days. If I pay it therefore wlien presented for acceptance, I thereby pay W. H. Dennis, and so get out of his debt, which is tlie reason for liis being debited. — Cash is credit because it is paid ; Discount is credit because it is allowed me, for paying the draft before it was due. 50 THE PnACTICAIi noOK-KKKI'ER. '••■'J. Sadler's Day Hook and Journal entries on liaying the draft alter it» acceptance, but before it became due. Day Book. 1 JounxAi,. Du. Ch. Aug. ai Prepaid my ac- cnptanco favor of J. D. Davis - - - - 1 100 00 Bills Pavablo, - - To Ca.h . - '• Discount • 100 00 9fl 31 (JO Discount for 4'2 day.s - - - 00c Proceeds paid in casli - . $',)!). ni i 1 1 When I accepted tlie above draft, Bills Payable was Cr. Inow debit Bills Payable, because the B/P (my acceptance) is redeemed. Cash and Discount are Cr. for same reasons as before (when the draft was prepaid in lieu of being accepted). '"■'.). D.Davis's Day Book and Journal Entries ou receiving the above draft and gettinj^ it accepted by J. Sadler, . Aup 11 Day Book. Received from W. 11. Dennis .J, Sad- ler's acceptance at 00 days a/d to ap- ply on account - - 100 00 Journal. i Bills PiPceivable- - , To W. H. Dennisj \ Dn. I ! ! I ' 100 00 Cr. 100 00 If I receive an accepted draft, it is equivalent to rec( ?ing a Promissory Note, and I must debit Bills Receivable. W. H. Dennis gives me his accept- ance in settlement of his indebtedness to me- -he pays me — gets out of my debt, and therefore I must Cr. him. '** J. D. Davis's Day Book and Journal Entries upon getting the above acceptance discounted at Bank of Commerce and receiving the cash proceeds. Aug. 81 Day Book. Discounted J. Sad- ler's acceptp.nce at Bank of Commerce, Discount off I'id's 01) Proceeds received in cash - - $09.31 100 UO JOURNAL,. Dr. Cash Discount - - - . To Bills Ilec'ble 99 31i 69 Cr. 100 OO' When the above draft was received and accepted. Bills Receivable was Dr. We now Cr. Bills Receivable because it is disposed of. Cash and Discount respectively are Dr. for same as before. TnE PRACTICAL DOOK-KREPER. St t» n lis lit vo ] f>0 ry it- )t. ve )0 lit BILLS OF EXClIANCiE '""aro of two kintlH, Foreii/ii ami Domestic, ""FoRKioN MiM.H. — A Foreign bill is a draft made in one country upon another whore it is payable. '""Domestic Dii-ls. — A Domestic bill is one drawn and payable in the same country. ""Days ok Gbace. — After the maturity of a Note or Draft, according to its strict tenor, tlu ro is still a certain time allowed before the bill becomes actu- ally payable. Tiiis time is called " iI<(>ik of iirarc," and these arc (,'enenilly thne m number. If the last day of grace fulls upon Sunday, or upon a legal iioliduy, the bill in Canada will fall due on the day after such last day of grace, in the United States on the day before such last day of grace, nnnk-chequoa and Notes and Drafts " on demand " have no lUojn <>j ijnice, and in some States of the Union, Sight Drafts have none. '9 'Protest, — A protest is a declaration made by the holder of a Note, draft or acceptance, or by a Notary Public on behalf of such liolder, against losses that may bo sustained in consoqaonco of non-payment at maturity. Tlie Note, Draft or acceptance must bo presented on the actual day of maturity ; and notice of such non-payment must be given to the endorsers within 21 hours thereafter, otherwise such endorsers cannot bo hold liable for ayment. ENDORSERS AND ENDORSEMENTS. ""An Endorser is the person who writes his name on the back of a Note Draft or Cheque, either for the purpose of transferring the title or ownership, or for becoming responsible for payment. '^3A.N Endorsement is anything written on the back of an instrument, having relation to the instrument. i9»Thero are five forms of endorsement, as follows, viz.: '""A Blank Endorsement, or more properly, an endorsement in blank, is simply the name of the endorser written on the back of the instrument. ''•"A Special ob Full Endorsement is one which specifies the party "or order " to whom the instrument is transferred, followed by the signature of the endorser. '®^A Conditional Endorsement is one which annexes a condition or conditions, to the endorsement, without the performance of which the endorser cannot be held liable. lo^A Qualified Endorsement is one which restrains, or limits, or quali- fies, or enlarges the liability of the endorser, by adding such word, or words, sufficient to prevent liability on the part of the endorser. '"^A Restrictive Endorsement is one which restricts payment to some particular person named in the endorsement. soojlow TO Endorse Notes, Drafts and Cheques. 1st, write the name across the back (not lengthwise) at about one-third the length from the left- hand end. (The top of the back is the left-hand end of face). Sign your name just as it appears on the face. !| I : 11: 52 THE PRACTICAL BOOK-KEEPER. No. 7 ToKONTO, August 20th, 1882. CANADIAN BANK OF COMMERCE. Pay to W. n. Dennis,. . . or Order, One hundred. _......_ _ TTnrDoUars TffTf-* SIOO. C. O'Dea. • ■ S . :' ' ^ i , Q§^ w !r f-t o 3 « B tz: !^ t"-i C OQ ( o ■|f ■" • CO ■ ' The Endorsee, that is the person to whom the above cheque is endorsed, can cliange this eudorsoment to au endorsement in full by writiug over W. H. Dennis, " Pay to Eow. Tuout, or Obdee." p o c >-« o '^ -- " B i.-j 1— 1 3 03 ^ CD VI !^ Ct c *— 1 .^■^s a' • a h3 o o o o 58 g a * o C j3 Cl ^— ' o •« o" M a P - S 03 oi CD CO ^ 1— ( " , ■ ■ ^ , ■_■■.%, : ■' ,;■■ . . - 9°. criT. «*; r- r* -^ 1^ 5 ? f^^ C ;a t-M C ^ e ft O •^ &. K «? o ^^ 03 ►^ &; HH ?■? s r/^ L-i i' - o * C a p 5 5 ^ "tJ o E i - CD •- • o (ri- fe; Ei. J: o p. < ^ 5 B ^ cr c^ <'*J 2 £ o P B =♦ „ • i-n j2 O O a 2 £.>^ e^ I- p. ^ S i^ i= o £• t? ^^a5 3 *N(iTK.— T(i iimko this cii'lursuiiiont oiiciuto as a ijerlect Uuusfer of titlo, it must be allow conditiou hiia bcoii carrk'd ovit. u tliut Uie {| 64 THE PRACTICAL BOOK-KEEPER. BUSINESS FORMS. BILLS OF EXCHANGE. 301 Exchanse for £500. Toronto, July 4, 1882. Sixty days after sight of this first of Exchange (spcond and third of same tenor and date unpaid) pay to H. Austin & Co., or order, Five Hundred Pounds sterling, value received, and charge the same to account of Kent BnoxuERs. To Wade & Butcher, Bankers, Sheffield. No. 151. Exchange for 1*500. Toronto, .July 4, 1882. Sixty days after sight of this second of Exchange (first and third of same tenor and date unpaid) pay to H. Austin & Co., or order. Five Hundred Pounds sterling, value received, and charge the same to account of Kent Brothers. To Wade & Butcher, Banker?, ' ' . ' : SheCield. No. 151. Exchange for £500. . Toronto, July 4, 1882. Sixty days after sight of this third of Excliange (first and second of same tenor and date unpaid) pay to H. Austin A Co., or order. Five Hundred Pounds sterling, value received, and charge the same to the account of Kent Brothers. To Wade & Butcher, : Bankers, Sheffield. No. 151. CERTIFICATES OF DEPOSIT. "0 2 A. Certificate of Deposit is a written or printed instrument issued by a Bank or Banker, certifying that the person therein mentioned has deposited for safe keeping a specified sum of money, payable to the order of the depositor ou the surrender of the certificate properly endorsed. or THE PBAOTICAL BOOK-KEEPER. CERTIFICATE OF DEPOSIT. 66 303 Toronto, August -4, 1882. CANADIAN Bank of COMMEPxCE. James Rekl lias deposited in this Bank, Three Hundred and Fifty Dollars, to the credit of liimsulf, payable on the return of this eertificate, properly endorsed. W. N. Anderson, $350. Manager. DUE BILLS. so+DuE Bill is a written ackno^s'ledgmcnt of a debt. When it is intended that a due bill should be paid at a specified time in the future, such time should be given. 203 (Negotiable by endorsement). §■10. • Toronto Aug. 11, 1882. Due from our John store. Moi •risou, or or der, on demand, Fo ity Dollar Eaton & s, in goods Co. 20< ■- » (Not negotiable). Toronto Aug. 10, 1882. Due W. Da my store. -vis, on demand, Seven P )llars, in boots and shoes, from P. IIlGGINS. ORDERS. *° 'An Order is a written request to deliver or pay goods or money on account of the person making the request. $100. (Negotiable by endorsement). Toronto, August 1st, 1882. Messrs. Smith & Fudger, please pay to C. W. Norris, or order, One Hundred Dollars, and charge to my account. Edward Trotjt. 5G THE PRACTICAL BOOK-KEEPER. ORDERS. 208 (Not negotiable). $40. Toronto, Aug. 20tb, 1882. Messrs. McMaster & Co., please pay to J. K. Cameron, Forty Dollars, in Goods, and charge the same to my account. James Park. RECEIPTS. ^o^A Receipt is an acknowledsQifit in writing of having received a cer* tain sum of money, or other valuable consideration. •J 10 $100. (In full of Account). Toronto, Aug. 14th, 1882. Received of W. H. Smith, One Hundi'ed Dollars, in .full of account. ' ^ , C. L. Thomas. 2 1 1 §40. (In full of all demands). Toronto, Aug. 20th, 1832. Received of Edw. Trout, Forty dollars in full of all demands, to date. C. O'Dea. (For a particular bill of goods). $200. Toronto, Aug. 24th, 1882. Received of W. Wilson, Two Hundred Dollars, in payment for a bill of goods of this date. D. Fle.ming. 2 18 (For Services). « Toronto, Aug. Ist, 1882. Received of Geo. He i-man, Twenty ■fi\o Dollars , in full for .services to date. J. K. Cameron. THE PRACTICAL BOOK-KEEPEn. 67 RECEIPTS. 213 $62 (For Rent). Toronto, Aug. 4tli, 1882. Received of Edw. Trout, Sixty-two Dollars for one quarter's rent of premises No. 1G3 Richmond Street, endins; June 30th last. Hughes Bros. 2 14 $400. (To apply on Note). Toronto, July 14th, 1882. Received of Robert Minty, Four Hundred Dollars to apply on his Note my favor, dated April 1st, 1882. W. E. Grant. (Agent's Receipt). $150. Toronto, July 20th, 1882. Received of M. L. Green, One Hundred and Fifty Dollars, in full of his account with W. II. Covert. C. W. Morris, Agent. SI" (For interest due on Mortgage). $75. Toronto, August 1st, 1882. Received of G. A. Catou, Seventy-five Dollars, in full of one year's interest, due this day, ou his mortgage to me, dated August 1st, 1881, for Six Hundred Dollars. Edw. Trout. BILLS AND INVOICES. 2 1 "A Bill of Goods is a description of the quantity and price of goods sold, with the date of such sale, and the names of the purchaser and seller. 3i^An Invoice is a full account of Merchandise, in which the markn, numbers, contents, weight and value of each package, together with all the charges, aro described. 58 THE PHACTICAL BOOK-KEEPER. (Not receipted). Mr. Wm. smith, Toronto, August Utli, 1882. Bought of FRANK SMITH & Co. r>o 100 20 7 Ib.-i. Youn^ Hyson " Granulated Sugar " Coffee " Palv. iiw'ar @ 50 i 25 00 ; («; 10 i 10 00 @ 24 1 4 80 @ lOi 1 i 1 74 40 54 (Receipted). ToKOXTO, July -Itb, 1883. Mr. G. a. MITCH I'IJi, Bought of T. EATON & Co. 10 vds ]51k. Silk @ 1.10 11 ! 00 i 4 ii Cashmere &. 90 8 01) , 1 20 it ]\[uslin @ 10 «2 00 1 18 (( Fiictoi'v Cotton @ 12Ar 1 C8 ! 11 U Silli Velvet iljcoivod T. & 5.50 jmvment, i IvvroN A Co., rcr W. T. GO 50 1 78 70 Toronto, August 9th, 1882. Mr. W. J. CAIITER, Bought of W. HAMILTON. 20 20 yds. Bro.idcloth " Scoteli Tweed Cii. By Ciish 1 @ 8.10 eed Qa 1.75 1 1 G2 85 00 00 97 50, Ijalance due 47 00 00 TUE PUACTItAL BOOK-KKEl'En. 5y Folio 40O, Sold by G. L. C. 150 Front Street East, Toronto, August 9th, 1882. Ihi. C. O'DEA, Port Hope, Ont. Bought of JAMES SHIELDS & Co., IMPORTERS OF TEAS AND (iKNHUAL GROCERIES, kc. Shipped per G.T.It. Terms— Note 4 months. 8 Half Clicsts Congou Tea |a.i.| 231'i 79, U, 84, 15, 70, 17, 1(5 187 Half Chests Ooloug Tea " S. A." 112 59, 14, 58, 15, 29 83 Bap;s Eice 07 1 224-J, 22G-5, 22-4-4 13 CGI Bbls. Extra Icing Sugar, 381 191-20, 190-22. 42 339 Bbl. $2.50. 0. It. Whiskey 42(J7 Bbls. Gianulatral Sugar 292-23, 2fi8-22, 274-22, 283-22. 14U0 283-22, 114 1280 Ciulage 64 3^ 11.1 1.35 9g 102 85 44 82 24 79 : 38 1 99 ' 59 29 1 i 120 50 25 891 tit ) MONTHLY STATEMENT. Toronto, August 1st, 1882. W. H. COYEBT, In Account with EEANK SMITH & Co. July 1 3 To l?iilaiK'C of account rendered " Merchandise as per Invoice 101 201 50 i 4 i. II II 11 181 50 7 II 11 >( Beaty, to continue the same business under the style of Beaty & Co. Mr. Beaty is to bring into the business capital equal to the Present Worth of the former proprietor's interest on May 1st. The partners are to share the Profits and Losses equally, or according to the common expression " share and share alike." It will now be necessary for the student to change "Stock" account in the THE PnAOXIOAIi OOOK-KKUI'KB. 61 Ledger into liis individual name, by making the following Journal Entry, viz., " Btook" Dr. To (student's name) for amount of the Pbesent Worth on May 1. QUESTIONS FOR REVIEW. ••What is a business transaction? • 'How many forms may the record of a busi- ness transaction require ? » *Name the first form ? •*Give an illustration of the first form ? ••Name the second form? ••Give an illuHtration of the second form? " 'Name the third form ? ••Give an illustration of the third form? ••Name the fourth form? '""Give an illustration of the fourth form? •» 'Where are transactions, requiring to be recorded, first entered ? ") a Describe the mode of reoording transac- tions in the Day Book ? >° 'Describe the method of taking a Trial Balance? '"•When there ia only one item on either side of an account, how is it treated? ' ' "What is the object of getting a Trial Bal- ance? ■ ' 'What is a Trial Balance, and ia it a test of the correctness of the Ledger ? Ex- plain. ' ' * What does a Trial Balance show or prove 7 Note.— Tht) annwers to the above quenUons are to be written out b; the student before going oo \ritb the next muuth. 13 ^re ty G2 THE PRACTICAL BOOK-KEEPEB. May 1 Bobert Doaty lias bccu admitted as partner in the business. lie is to invest iu Cash an amount equal to the Student's Present Worth, Gains and Losses to bo shared equally. The firm's name to bo lieaty & Co. •' " Robert Beaty invests Cash. " " Sold Oooderham & Worts on account, 200 bus. Corn (ii HOc, $ ; 221 bus. barley, @ 70c., 6 ; 100 bus. Sp. Wheat @ §1.80, S . «' 2 Sold Edw. Trout, on account, 20 bbls. Flour at $6.00, $ . " 8 Made a draft on Edw. Trout at 30 days' sight, aud had it discounted at Bank of Commerce, for $400 ; Received the Proceeds iu Cash, disct unt otr @ %. " 4 Bought of Jiimes Park, on our acceptance, at 80 days' siglit, payable at Bank of Commerce : 500 lbs. No. 1 Cheese @ l-ic, $ ; 2'lOlbs. Lard g: 18.ic., -i^ ; 10 llamsl7.t, 17, 18, 17, U^, IGJ, 19, 19i, 20, 17-i = 17Ci lbs., @ 15Ac. •' 5 Deposited iu Bank of Commerco, Cash i^l.OOO. " " Bought of A. V. DeLaporto : 100 1ms. No. 1 Fall Wheat @ ijl.SO, $ ; 200 bus. No. 1 Barley @ 70c., $ . Gave in part pay- ment our acceptance at 80 days' sight, payable at Bank of Com- merco, §200 ; our check on Bank of Commerco for balance. •' G Sold Gooderham & Woits 200 bus. Barley @ 75c., .^ ; 100 bus. No. 1 Fall Wheat t(. ^1.85, § . Received in payment their acceptance at 00 days' sight, payable at Bank of Commerce. " 7 Made a draft on W. P. Ho^viaud & Co., at 30 days' sight, paj-able at Bank of Commerce, to balance their account, and sent it to tliem for acceptance. (Memo.) " 9 Bought of J. & A. Clark, on account, 25 bbls. XXX Flour @ $5.50, $ ; 100 bus. Corn @ 7uc, ^ -. W. P. Howlaud & Co. returned draft accepted, date of acceptance 9th instant. «' JO Sold Edward Trout, on account, 25 bbls. XXX Flour at §0, $ ; 10 Uams ni, Ul, 19J, 17, IGf, 18, 19, 17*, 17, 20 = 176^ lbs. @ 17c., $ . " 11 Accepted Furness & James' Draft on us at 80 days' sight, payable at Bank of Commerce, to apply on account, ' 12 Deposited in Bank of Commerce for collection, W. P. Howland's accep- tance of the 7th, aud Gooderham & Worts' acceptance of the 6th instant. (Memo). I "Describe the method of discovering errors ill Trial Balance ? '"-Into how many classes are accounts divided ? '•»Niime them? ""What is meant by Ilea! Accounts ? '"■■If the debit side of a Ileal Account is in excess, what i>< such excess called ? If the credit side ? ' = ' What is the difference between Assets and Liabilities called '? '2'What is meant by Representative Ac- counts ? '»»If the debit side of Representative Acct. is in excess, what is such excess called ? ""If the creiit side of Representative Acct. is in excess, what is such excess called ? ""How is Net Gain found? ' » ' How is Net Loss found ? "-Describe another method of finding Net Gain or Net Loss other than by 130 and 131 ? ' ' 3Descril)o another method of finding Pres- ent Worth, other than by 12G? "'How often are books supposed to be closed in actual business ? '■"Describe the method of closing the Lcd- Rcr? "■■•When the account to be closed has an Inventory showing an asset, how is such account closed ? Note.— The answers to the above questloua are to bo writtau out by the stuJeut before goiu^ on with the uext mouth. ti .J d4 June THE PRACTICAL BOOK-KEEPER. 1 Bought of Gooderham & Worts, on account, 100 bus. No. I Fall Wheat @ $1.20, § ; 74 bus. No. 1 Barley (" 02c., § ; 200 bus. Corn (Wj 75c., 8 ; 100 bush. No. 1 Bering Wheat (a> §1.21, 5> • •' Solil P. & F. A. Howland, on account, M0.t bush. No. 1 Spring Wheat @ $1.85, $ ; 101 bus. Jiarley @ 70c., § . 2 Received of W. U. Kuowlton & Co., Cash to apply on account, $250. " Bought of L. Coffee & Co., 50 bbln. XXX Flour (>^ $5.i)0, $ ; 84> bus. No. 1 Fall Wheat @ $1.25, $ ; 75 bus. Barley @ 70c., $ . Gave in part payment our che(|ue, $250; balance to remain on account. " Made a draft on Fjdw. Trout at 80 days' sight, to balance his account to l»t iust., and sent it to him for acceptance. 8 Accepted J. D. Laidlaw's draft at iiO days' sight, to balance his account to date. " Sold Edw. Trout, on account, 75 bus. Barley @ 75o., $ ; 50 bbU. XXX Flour @ $0.25, $ ; 84} bus. Fall Wheat @ $1.82, $ . 5 Edw. Trout returned draft accepted, date of acceptance June 8rd. " Bought of A. V. DeLaporte, 10 bbls. Prime Pork @ $15.00, $ ; 25 bbls. XXX Flour @ $5.50, $ ; 140 bus. No. 2 Fall Wheat @ $1.20, 6 ; 150 bus. Corn @ G5c., $ . Gave in part payment. Cash $200 ; our cheque, $100 ; balance to remain on account. " Prepaid our acceptance of the 11th ult., favor Furness & .James. Dis- count for days. Balance paid by cheque on Bank of Commerce. " Sold W. L>. Matthews & Co. on their acceptance at 30 days' sight, 140 bus. No. 2 Fall Wheat @ $1.25, $ ; 25 bbls. XXX Flour ^ $0.00, $ ; 100 bus. No. 1 Spring Wheat @ $1.80, $ . Bought of Gooderham & Worts, 100 bus. Nc 1 Fall Wheat @ $1.30, $ ; 100 bus. Barley @ GOc, S ; 20 bbls. Superfine Flour at $0.00, $ — ■. Gave in part payment our Note at 2 months, $150; balance to remain on account. " Deposited in Bank of Commerce, Cash $1000. 7 Our acceptance, favor of James Park, due on the Gth inst., at Bank of Commerce, has been charged by Bank to our account. 8 W. H. Kuowlton & Co. have prepaid their acceptance of the 28rd ult. into Bank of Commerce. Discount for days. Balance to our credit at Bank of Commerce. 9 Bought of J. & A. Clark on account, 25 bbls. XXX Flour @ $5,50, $ ; 200 bush. Peas @ 75c., $ ; 200 bush. Oats @ 45c., $ . 10 Sold C. Fleming on account, 200 bush. Oats @ 54c., $ ; 100 bush. Barley® 70c., $ ; 100 bush. No. 1 Fall Wheat @ $1.28, $- " Bought of James Park, 240 lbs. Lard @ 13 Jc, $ ; 250 lbs. No. 1 Cheese @ lie, $ ; 10 bbls. Goderich Salt @ $1.75, $ ; 400 lbs. Prime Butter @ 23c., $ . Gave in part payment our cheque on bank of Commerce, $50. Balance to remain on account. TIJK PRACTICAL BOOK-KEKPEn. 05 June 11 Mtidc a draft on C. Flcmiug at 80 (lays' sight, aud romittod to P. t^ F. A. Uowland to apply ou account, leas discount at 6 %, $230. OH. •• " Sold W. 1). Matthews, ou account, 150 hua. Corn (-jj 7ac., $ ; 2.j bbls. XXX I'lour ([r. i^C.OO, $ . " 12 Depohitt'd in I5auk of Commerce, Cash fii450. ■' " 13oui;iit of A. V. iJoLaporto, on account, 20O bus. Corn (^, 75c., 1{> , 180 bus. Peas (./. 72c., $ ; 150 bus. Barley Oj} (i2c., § ; 'JO bus. Oats (ii: 48c., $ . " " Bank of Commerce has collected and placed to our credit, W. P. How- hind A Cos Note of May Oth last, *' •' Our acceptance, fav A. V. DeLaporte, due on on the 7th inst. at Bank of Commerce has been charged to our account. " 13 Bought of L. Coft'eo & Co., on account, 25 bbls. Flour @ $5.70, $ ; 200 bus. Barley ("' 70c., $ ; U0| bus. Spring Wheat @ $1.27, 11 Bought of Furness & James, on account, 25 bbls. Salt @ $1.75, § ; 10 Haras, 171, Hi, 19, 17, 161, 18, 19, 17i, 17, 20=176J lbs., ^ ISijc, $- Bought of James Park, 400 lbs. Dairy Cheese @ 12Jc., $ — bbls. Salt @ $1.70, $ ; 400 lbs. Prime Butter @ 22c., 500 lbs. No 1 Cheese @ 14c., 8 20 •. Accepted his draft at 30 days' fight, for .*!100 ; balance to remain on account. 15 Sold Messrs. Furness & James, on account, 20 bbls. Salt @ $2.00, $ ; 400 lbs. Butter @ 25c., § ; 600 lbs. No. 1 Cheese @ lOic $ . " Made a sight draft, on C. Fleming, payable at Standard Bank, and remitttd it P. it F. A. Howland, in full of account to date, §160. 16 Sold Gooderham & Worts, on account, 20 bbls. Flour @ $0.50, | ; 74 bus. Barley (u; G8c., $ ; 100 bus. No. 1 Fall Wheat @ $1.85, 17 Made a draft ou Gooderham & Worts @ 80 days' sight, payable at Bank of Commerce, in full of their account to the 1st inst., and sent it to them for acceptance. " Prepaid our acceptance of May 19th, favor of L. Coffee & Co. Discount days. Gave cheque for balance. 19 Sold James Park, ou account, 210 lbs. Lard @ 15Jc., $ ; 10 bbls. Pork (r?, $17.10, § ; 400 lbs. Cheese @ 14c., $ . " Sold E. K. Sooley, 10 bbls. Salt® $2 25, $ ; 250 lbs. No. 1 Cheese @ 13ic., $ . 20 Prepaid our Note of April 7th la^t, in favor of P. & F. A. Ilowland 3 months. Discount days. Gave our cheque for balance. " E. K. Scoley, ou account, 500 lbs. Cheese @ 15c., $ ; 25 bbls. Salt @ S2.25, $ . 21 Sold W. P. Howland & Co., 200 bus. Corn (fr 82c., $ ; 200 bus. '".aiey (ri; 75c., $ . 22 D>.[>osited in Bank of Commerce, Cash 8415.00. ■66 Xa£ I'^AGXICAL I300I£-KI££1>ER. June 22 Sold Gooderham & Worts 200 bus. Corn @ 82c., $ ; 140:^ bus. No. 1 Spring Wheat, @ $1.34, § . Keceived in part payment Cash §250. Balance on account. " 23 Bought of J. D, Laidlaw, 100 bus. Barley @ 60c., $ ; 150 bus. Corn @ 65c., $ ; 200 bus. Oats @ 45c., § . Accepted his draft at 30 days, payable at Bank of Commerce for §120; balance to remain on account. " " Sold AV. D. Matthews & Co., 25 bbls. Flour @ §5.90, § ; 200 bus. Oats @ 54c., § ; 180 bus. Peas @ 82c, §- — . Made a dtal't on them at 30 days' sight, payable at Bank of Commerce, and sout it to them for acceptance, for this amount. (Debit W. D. M. & Co. for above amount. Credit them when they return the draft accepted). " " Gooderham & Worts returned draft, drawn on them on 17th iust., accepted, date of acceptance June 2(Jth. " 24 Sold A. V. DeLaporte, 150 bus. Barley @ GSc, § . Drew ou him for amount at 30 days' sight, payable at Bank of Commerce , and sent it to him for acceptance. " " Sold C. Fleming, for Cash, 150 bus. Corn & 73c , § ; 100 bu;j. Barley (nj. 70o., § . " 26 W. D. Matthews it Co. returned draft made 23rd inst., accepted, dat» of acceptance June 21th. " 27 A. V. DeLaporte returned draft made on the 24th inst., accepted, data of acceptance June 2Gth. '• " Deposited in Bank of Commerce, Cash §150. " 28 Robt. Beaty has withdrawn from th'- business Cash for private use, §120. The Student has withdrawn from business, for private use. Cash per Cheque, §150. " 30 Paid the following expenses, per cheque. Rent, one mouth, §.50 ; Clerk's salary, one month, $50; Stationery, stamps, tic, §4.10, §104.19. Take a Trial Balance and proceed with next mouth. QUESTIONS FOR REVIEW. •*»When an account having an inventory showing a liability, bow is such ac- count closed ? •**How is Loss and Gain account closed? '<*How is Stock and Partners' accounts closed ? ' ■• "Is it a common practice in business to rule and balance accounts every month? i« 'Describe the method of taking a Trial Balance lor February ? '■•"Which accounts are closed in February? ' • "Which accounts are not closo.l ? '^"What makes a Promissory Nvite, Cheque, Draft, etc., ninotiable ? ' ■^ 'What is a l'romis.-;i.ny Note? "•'Writoouta Negotiable Promissory Note, ""Write out a Non-Negotiable rromissory Note. ' *• Write out a Joint Negotiable Note? '•'What is a Draft? Write out a Sight Draft Dayable at Standard Bank fur »10l). ""For wliat purpose are Drafts employed? ' « 'How many i)artiea are there originally to Promissory Notes ? ' '■' » How nniny parties to a Draft ? '"♦What is the party call':"! to whom a Note is payable, and where does his name appear in the instrunuMil? ' "^What is the maker of a Draft called ? and where dues his name appear in the iustruiuent ? Note.— The ausweis to aLove ijuGs.i ins are to bo written out by atuJout bi'foro going on with next 11101. th. I THU riiAOTIOAL COOK-KEEFEBt 67 July It II II 3 Received of EJw. Trout Cash to apply on account, $300. " Gave L. Coffee & Co., our Cheque on Bauk of Commerce, to apply on account, $500. •' Received of Furness & James Cash in full of their Note, dated March 80th, due to-day. 4 Received of W. D. Matthews & Co., Cash in full of their account to date. " Received of J. D. Laidlaw Cash in full of his Note, due June 4th last, and interest to date. Amount of Note, § . Interest, $ . 5 Received of C. Fleming Cash in full of his account to date. " Deposited in Bank of Commerce, Cash §1200. 6 Received of Edward Trout Cash in full of liis acceptance due to-day. " Our acceptance due on Gth inst., at Canadian Bank of Commerce, has been charged to our account. " Sold W. P. Howland & Co., on account, 200 bus. Peas @ 80c., $ . 7 Sold J. D. Laidlaw, on account, 90 bus. Oats at 54c., § . " Sold James Park, on account, 25 bbls. Salt @ $2.25, $ ; 400 lbs. Butter @ 2Gc., $ . " Sold E. K Scoley, on account, 176^ lbs. Ham @ 17c., $ . " Made Draft on E. K. Scoley, at 80 days' sight, payable at Bank of Commerce, to balance his account to date, and sent it to him for acceptance. " Bought of J. D. Laidlaw, on account, 100 bbls. XXX Flour @ $5.90, $ ; 120 bus. No. 1 Fall Wheat @ $1.27, $ . " Sold Furness & Jcmes, on account, 70 bus. Rye @ 80c., $ ; 100 bus. No. 1 Spring Wheat® $1.85, $ ; 100 bus. Oats at 54c., to li " Bought of W. P. Howland & Co., on account, 80 bus. Peas @ 75c., 50 bus. No. 1 Barley @ 64c. , $ . •' Made Sight Draft on Furness & James, payable at Bank of Commerce, for balance of their account. (Memo). 8 E. K. Scoley has returned draft accepted, date of acceptance July 8th. " Bought of A. V. DeLaporte, on account, 100 bus. No. 1 Barley @ 65c., $ ; 100 bus. Rye @ 75c., $ . " Sold Gooderham &. Worts, on account, 100 bus. No. 1 Barley @ 70c., 100 bus. Rye @ 80c., $ . " Accepted L. Coffee & Co.'s Draft at 60 days' sight, payable at Bank of Commerce, for balance of their account to date. Edw. Trout has paid his acceptance due to-day. Received Cash. " Sold L. Coffee & Co., 80 bus. Peas @ 80c., S ; 50 bus. No. 1 Barley @ 72c., $ . Drew on them at 80 days' sight, payable at Bank of Commerce, and sent it to them for acceptance. 10 Sold P. & F. A. Howland, 100 bbls. XXX Flour (f? iJG.SO, $ ; 120 bus. No. 1 Fall Wheat @ §1.3-1, $ — — . Received in part pay- ment Ciish §-.00. Balance on account. '• Drew on W. H. Knowlton &, Co., at sight, payable at Bank of Com- merce, for balance of their account. (Memo). "i HI f 'i; 68 THE PRAOriOAIi BOOK-KEEPER. July 10 Bought of W. D. Matthews & Co., on account, 70 bus. Rye @ 75c., $ ; 100 bus. No. 1 Spring Wheat @ §1.30, $ ; 100 bus. Oats @. 50c., § . " 11 L. Coffee & Co. have returned Draft drawn on them on the 8th, accepted, date of acceptance July 10th. •' " Bank of Commerce notifies us that Sight Draft of the 7th inst., on Furness & James, has been placed to our credit, less collection charges, 25c. " " J. D. Laidlaw has prepaid his Note, dated April 2Gth. Discount days. Balance received in Cash. " " Bought of E. K Scoley, on account, 500 lbs. No. 1 Cheese @ ISJc, !^ ; 250 lbs. Lard & Uc, $ ; 15 Hams, 17i, 18?,, 19tl, 19, 17, 1G.V, U:i, 15, m, 17^, 14i, 19, 21, 15i, 1G^„ @ Uc, 13 10 Deposited in Bank of Commerce, Cash $500. Gave W. D. Matthews & Co., our cheque to apply on account, $175. Bought of Gooderham & Worts, on account, 120 bus. Corn @ 75c., 100 bus. No. 1 Barley @ 70c., $ . Sold J. & A. Clark, 120 bus. Corn @ 80c., $ ; 100 bus. No. 1 Barley @ 75c., $ . Made Draft on them at 60 days after date, payable at Bank of Commerce, and sent it to them for acceptance. Sold James Park, on account, 500 lbs. No. 1 ChecoO @ 15c., $ ; 250 lbs. Lard @ 14c., $ . , We are advised by Bank of Commerce that Sight Draft drawn on W. H. Knowlton & Co., has been collected and placed to our credit, less charges for collection, 25c. Eeceived of James Park, Cash to balance account to July 1st. Sold James Park, on account, 15 Hams, 17i, 18J, 19f , 19, 17, IGi, 14a 15, 18i, 17f , 141 19, 21, 151 IGh @ "iGc, $ . J. & A. Clark returned Draft of the IStli inst. accepted. Bought of P. & F. A. Howlaud, on account, 50 bbls. XXX Flour @ §5.50, $ : 200 bus. Peas @, 70c., 6 . ; 240 lbs. Lard " Bought of Hawley Bros., 500 lbs. Butter @ 22c., S @ 14c., $ ; 500 lbs. No. 1 Cheese @ 12Ac., $ . " Sold W. P. Howland & Co., on account, 50 bbls. XXX Flour @ $5.90, 200 bus. Peas @ 79c., ^ . 17 Received of James Park his Note at 2 months, with interest, to bal- ance account to date. " Sold C. Fleming, on account, 500 lbs. Butter (5 25c., $ . " Prepaid our Note, favor of W. P. Howland & Co., dated April 29th, to run 3 months. Discount, days. Proceeds paid per checjue. " Sold A. V. DeLaporto, 240 lbs. Lard @ 15c., .§ ; 600 lbs. Cheese @ 14c., $ . Received in part payment, Cash $75 ; balance on account. 18 Accepted A, V. DoLaporto's Draft on us at GO days' sight, payable at 5ank of Commerce, to balance account up to July 1st. THE PRACTICAL BOOK-KliEPEE. 60 July 18 Accepted Gooderham & Worts' Draft at 80 days' sight, payable at Bank of Commerce, to balance tlioir account on July 1st. " 19 Bought of Edw. Trout, ou account, 140 bus. Peas @ 71c., $ ; 120 burf. Uailey @ G2c., § . «' " Bouglitof W. P. Howlaud & Co., 15 bbl.s. XX Flour @ o.lO, $ ; 75 bus. Spring Wheat (lO, $1.27, ? ; 100 buy. No. 1 Barley (id, GOc, Ij? , Gave in part payment our cheque, $100; balance to remain on account. "■ 20 Prepaid our Note, favor of Gooderham & Worts, dated June Gtb, to run 2 mos. DiKcount. Gave cheque for balance. *' 21 Bought of liawley Bros., on account, 500 lbs. Dairy Cheese @ lie, $ ; 10 Hams, M, 10^, 17, I'Jh '^i^. 18i, lUi. H|, 15i, ICJ, 172^ @ U^c, Ip . *' " Bought of C. Fleming, on a.-icount, 40 bus. Fall Wheat @ $1.24, § ; 80 bus. Eye @ 70c., $ *' 23 Bought of J. D. Laidlaw, ou account, 140 bus. Bye @ 74c,, § ; 40 bus. Corn @ 75c., § . " 24 Accepted Rawiey Bro?,." Draft at 30 days' sight, payable at Bank of Commerce, to apply ou account, !?20G.10. *' " Sold Gooderham & Worts, 15 bbls. XX Flour (£»' $0.00, $ ; 75 bus. Spring Wheat ({r -SI. 30, $ ; 100 bus. No. 1 Barley @ G5c. Eeceived in part payment. Cash §120 ; balance on account. " " Gooderham & Worts have paid their acceptance due 2Gth instant. Eeceived Cash, $ . " " Sold W. D. Matthews i^ Co., on account, 140 bus. Peas @ 80c., $ . <' 2G Sold \V. P. Ilowlaud >*c Co., on account, 120 bus. Barley @ G5c., v • " 27 W. D. Matthews & Co. paid their acceptance due this day. Eeceived Cash. " 28 Sold W. H. Knowltou d Co., ■* bus. Fall Wheat @ $1.30, .? ; 80 bus. Eye (^r 80e., $ . Eeceived in part payment. Cash $75 ; balance on account. <' 30 E. Beaty has withdrawn, for private use, Cash S-00. " " The Student has withdrawn, for private use, Cash $200. " " A. V. DeLaporte paid his acceptance due to-day. Eeceived Cash, " ;U Deposited in r.auk of Commerce, Cash $750. *' " Paid the following expenses in Cash : Ecut, one month, $50; Salary one month, $50; Stationery, &c., !?7.03, $107.03. 500 lbs. of Cheese (« 11 1721 " of Ham @ 14J Asset Inventories. - 40 bus. of Corn (n 75 140 " of Eye Qi; 74 Interest due ou Bills Eeceivable. LiAuiLiTY Inventokv. — lutcrcst accrued ou Bills Payable, 33c. t!'iil !.:'5l •70 THE PRACTICAL BOOK-KEEPER. MONTHLY i ■!!■ Ml '11 luV. AJCOUiNTS. 1 JANUARY. FEBRUARY. MARCH. Dn. Cr. Db. Cn. Dr. Cb. Stock - 5000 00 250 '00 502126 25000 i 5300 97 Cash 7597 7!) 4866 16 4742181 339721 62no'32 '■ 4779 59 Merchnncliso 3812 52 3337 98 3595 07 3595 71 4890 09 4116 40 Edw, Trout - 200 00 481 60 498 128 337 81 498 28 i 337 81 L. CotTee & Co - 500 00 771 no 213 |C6 687:40 990 00 : 986|90 W. D. Matthews & Co. 1 256 00 1 657 30 400 00 ! 781 20 Bank - - - - 1 4500 00 1013 00 6487 loo 1266 09 7287 00 1 4737 23 Bills Payable - - | 1570 96 695 iOO 2905 56 2333 26 t 3408 98 Bills Receivable - 240 y<.) 725 24 2077 09 246 9;> C. Fleming - - 1 543 20 250 GO Expense - - - ' i Totals, Jany. 1 J, & A. Clarke 146 20 102 100 10. 00 138 15 108 100 64 00 138 17".4f. 711 17546 70 1.5 Interest anil Discount 1 10 ill 1 22 17 12 W. P. Howland .fe Co. 813 U4 801 30 1371 04 959 oo P. & F. A. Howland - i 83 CO 160 00 283 00 1072180 Furnesa & James - | - Total! 1 Feby. / 572 60 io' 18878 30 772 50 7D2 Oit 18878 W. H. Knowlton & Co 1 1 — 723 15 500 00 James Park 75 60 102 0') J. D. LaidJaw 115 88 94 60 228 80 A. V. DeLaporto Totali.l 28560 99 28566 99 Hawley Bros. 1 1 1 1 looderham & Worts ■ 1 Student 1 R. Beatty - E. K. Scoley - ■ * t 1 i ■ Note.— The number of lines to bo left for each account in Lodgor: Edw. Trout, 15; Jlci-chandi-io, 70; Hills I'liyablo, '27 ; Hills KoL'oival)lo, •2,7; K.xpouao, 12 ; P. &. F. A. Ilowlanil, 10; J. & A. Clark, 1(1; Interoat ami Discount, 15 ; J. D. Laidlaw, 10 ; A. V. DeLaporto, 10 ; R. Boaty, 7 ; Hawley Uros., 5 ; Stock, THE PBACTICAL BOOK-KEEPER. 71 TRIAL BALANCE. APBIL. Db. Cn. I I 250 00 71()2;07 b620|37 829128 99u|60 tjii0|0( 8287 29(15 2127 494 1U3113 435 1G96 283 1072 5o: 723 1012 • 17:: 113 33210 31 5584I59 fci020ln9: 33«8,75i 337|8r 986190 78l!20 6528166 loooUs' 725 24 198 15 959101'j 1072i80 1583 87 500 00 102'50i 352 80 107:50 33210:34 M»y. J MAY. Dr. Cr. 13724 02 2133'09 1129i24 99060 600J0(i 13650! 10 3468:98 8672:28 494175 103,29 697104 35! 778 48 1283 87 lri91'90 1012i6u| 173 44' 196 30 80 00 44680 200 00 150 00 46084 13 11835,98 1895125 73781 1170i70 78120! 7102108 4691 '57 1279 64 410 65 30] 1420 1583;87l 723|I5 602*50: 662 49! 107 50 5509 72 550917^ 46084:13 Tnt«(B, \ JunejiJuJ)' I JUNE. Db. 14626 05 5872 99 1609:53 990'60 126260 1640214 4327:57 5470'61 800)75 207 48 697 04 9,22 2010|04 i 150G3: 109li90 127080 662 49 298j3u ! 80:00 86406 350 00 275 00 187 50 60879 i'4: Cr. 14175 98 5998 24' 112924 1834,45 1184 30 8673il9 5550 62 22.3983 380 93 788 l.) 1 1696 165i U4 94 973 lo 863|90 789 770 107 50 1046 68 5509 72 5509'72 60979 01 JULY. Dr. Cn. 19353 8733 1009 1549 19066 5330 6270 925 314 868 10 2701 1S31 1132 711 801 28C 1329 550 475 217 16 7106 9! 19, 17133 Oi 9207 95 1607 24 1495 10 1044!) 85 6755 69 5085 61 900 35 S59 1.5 4 87 1924 29 183530 10919(^ 1086199 910 m 392 61 1206 68 5509,72 5509 72 356:36 74069 19 10 ; W. D. llFitthews, * Co., 12 ; Bunk cf Cummorcc, .TO ; Cash, .';," ; W. r Huwliina & Co., 12 ; Fiirncs=i ; W. H. Knowiton <$: Co., 10 ; Juujcs Pari:, 10 ; Student^ 7; Gooclerham & Woita, 10; E. K. Sooley, 5; Loaa iiiid Gain, 18. •J n 72 THE PRACTICAL BOOK-KEEPER. i :■• GUIDE AND EXPLANATION FOR MAKING A BALANCE SHEET, OK BUSINESS STATEMENT. After maliing yonr Trial Balance for July, you next make out n Balance Sheet or Business Statement, for the purpose of showing the exact condition of the business on July 31st. There are different forms of Business Statements in use among book- keepers, each one possessing some particular merit, but all having the same purpose in viev/. We think the form presented in tliis work preferable, on the whole, to any we know, as it combines with the Trial Balance a Statement, exhibiting in a condensed form the Assets and Liabilites, the Net Loss or tlie Net Gain, and each partner's res]50ctive share of the same, the Present Worth of the Firm's Estate, and each partner's Present Worth. In order to do the work understandingly, it is essential for the student to take eacli step as indicated, and go through the work as directed in the subjoined instructions. Take a sheet of paper of tlie requisite size, and rule off a suitable border with three red lines; then rule two double head lines, as in example, then write the accounts to be represented (taken from Trial Balance) close to the left-hand border; then lay off proper spaces for Dr. aal Or. money columns in the fol- lowing order : First, for " Trial Balance," which will extend one line bolow the accounts on tiie left; second, a single column for "Inventory," (same space as •'Trial Balance" columns); third, for "Loss and Gain," which will extend three lines below the " Trial Balance " and " Inventory " columns ; fourth, the •"Student's" columns, which will extend two lines below "Loss and Gain" columns; lifth, "Robert Boaty " and "Assets and Liabilities" columns, which will extend two lines below the " Student's " columns. After ruUng the columns as directed, write the Dr. and Or. footing respectively of each account in the columns headed "Trial Balance," and place the inventory in red ink in column headed "Inventory," in line with the account to which it belongs and extend it to the column headed " Assets." CASH. Commence with Cash, this being the account coming immediately after Partners' account. The difference between the Dr. footing, iJlO.SSS.iJG (amount received) and the Cr. footing, $17,133.01 (amount paid) is $2, 220.95 (amount on hand) which you carry to the column headed " Assets," (See page 75). MERCHANDISE. The dirference between the Cr. footing, SD,2G7.95 (amount sold) plus Inven- tory, $21S.01 (amount unsold), and the Dr. footing, $8, 733. 35 (amount bought) is l$7i'^.21, and is to be carried to the column headed " Gain." (See page 75). BANK OF COMMERCE. The difference between the Dr. footing, S19,0G().82, (amount of Deposits, Discounts and Collectiono) and the Cr. footing, 810,449.85 (amount withdrawn) is $S,616-97, and is to be carried to the column headed " Assts." See page 75). EDW. TROUT. The difference between the Dr. footing, $1,G09.53 (amount of his indebt- edness to us) and tlie Cr. footing, $1,(507.24 (amount of our indebtedness to him) is $2.29, and is to be carried to the column headed " Assets." (See page 75). )i THE PRACTICAIi BOOK-KEEPER. 78 W. D. MATTHEWS & CO. The explanation given for Edw. Trout's account, applies to this LCcouLt. J. & A. CLARK. The difference between the Cr. footing, $959.15 (amount of our indebted- ness to tliem) and the Dr. footing, $808.04 (amount of their indebtedness to us) is §91.11, and is to be carried to the column headed "Liabilities." (See page 75). BILLS PAYABLE. The difference between the Gr. footing, $0,755.09 (amount of our promis- sory notes and acceptances issued), and the Dr. footing, $5,330.02 (amount of such notes and acceptances redeemed) is $1,125.07, and is to be carried to the column headed " Liabilities." (See page 75). BILLS RECEIVABLE. The difference between the Dr. footing, $0,270.92 (amount of other per- son's promissory notes and acceptances received) and the Cr. footing, $5,085.01 (amount of such notes and acceptances disposed of) is $1,185.81, and is to be carried to the column headed " Assets." (See page 75). W. P. ROWLAND & CO. The explanation given for Edw. Trout's account applies to this account.. P. & F. A. ROWLAND. The explanation given for J. & A. Clark's account applies to this account. INTEREST AND DISCOUNT. The difference between the Dr. footing, $10.12 (amount allowed by us to others), and the Cr. footing, $ 1.87 (amount allowed by others to us) plus the Inventory, $2.01 (accumulated on Bills Receivable) is $3.54, ail is to be car- ried to the column headed "Loss." See page 75). EXPENSE. The Dr. footing, A314.51, (amount of outlay) you carry to the column headed " Loss." (See page 75). W. II. KNOWLTON & CO. The explanation given for Edw. Trout's account applies to this account. J. D. LAIDLAW AND A. V. DELAPORTE. The explanation given for J.k A. Clark's account applies to these accounts. C. FLEMING AND GOODERHAM & WORTS. The explanation given for Edw. Trout's account applies to these accounts. HAWLEY BROS. AND E. K. SCOLEY. The explanation given for J. & A. Clark's account applies to these accounts. LOSS AND GAIN COLUMNS. The difference between the Cr. and Dr. columns is " Net Gain," one half of which is each partner's Gain, and the amount is placed in red ink below the m i i: n 74 'IHK PRACTICAL BOOK-KEEPER. footings of " Trial Balance," in the column headed "Loss," and is placed in black ink, to the Cr. side of each partner's columns respectively. PARTNERS' COLUMNS. After each partner's gain is carried to Cr. side in each partner's column, the difTereuce then between the Cr. and Dr. of these columns is each partner's Present Worth, which is placed in red ink (in Student's Dr. column) below the columns headed " Loss and Gain," and (in Robert Beaty's Dr. column) below the columns headed " Student." These amounts are then extended to column headed "Liabilities." Now if the Dr. and Cr. footings of the columns headed " Trial Balance," " Loss and Gain," " Student," " Robert Beaty," and "Assets and Liabilities," are found to be equal, the Statement is correct. The partnership is now dissolved; Robert Beaty going out upon receiving a cheque on the Bank of Commerce for amount of his interest. (See State- ment for samti). The Student will wind up the business of the firm of Student und Beaty, by paying all its outstanding debts, notes and acceptances, collect- ing all debts, notes and acceptances due to the said fiym, and soiling the merchandise on hand. After which he will deposit in the bank the amount oi Cash on hand. Tlien the amount in the Bank is the Student's " Present Worth," and should be the same as the amount at the Cr. side of Student's account. The directions for and the mode of closing the business, will be found on the following pages. TIIIC I'lUCTIC.VL BOOK-KEEPER. 76 d in itnu, aer's the elow umn ided jsets VJUg ;ate- loDt lect- the t ol sent Ufa be S5 ?5 53 S S S S ?! Si § S O rt f^ »H ff o i i c g3SSS SS 3 8 S 3 ^ Q ■2 " w a o Eh c (1 m S 5 'A < S ft. Ti — ' t o — c o r: i-t r. — t- Q CI c »-; r^ x -^ L'. c -. jf 71 " 't ::; — M ?^ X ?.;,•. z c^ -x ;£ ?: S fj ^ Ti ^ -5 ^' !rU^ c: r: !/^ b' -5 ri w ?:' Ti r; C S eC X O w O — ~. O r-l -rr l.-t r; C Z L- rl iH Ml r-l c 'O r: r: ^ ^ r. ^ Q ■=■ ^ ^ o ** 3 1-1 -H lo -o *. t> o L7 Tji K Er ^ — '■• X " ~J <- ■*- ^^ •-' t- X Ci 31 r: T) I e i > g? V.-A a u.\ = -3 I ' a 03 r> O © O Si p. 4^ h .11 1:1 tfQ THE PRACTICAIi BOOK-KEEPm. MEMORANDA SHOWING THE CLOSING OF THE BOOKS. AuRUBt 1st, 1882. The partnership heretofore snhaistinpr hetween and Robt. Reaty has been dissolved by mutual consent, Robt. Reaty retirinjr from the business. All outstanding debts due the lirm of and Reaty arc to bo paid to — , who assumes all the Liabilities of the said firm. The Student will now wind up the business. August 1 Gave Robt. Reaty cheque on Bank of Commerce for his interest in the business. " " Sold Gooderham & Worts, for cash, 500 lbs. of Cheese (7f<, Mc., $ ; 172i- Ham @ IGc, $ ; lU bus. Corn @ 75c., $ ; HO bus. Rye @ 75c., S . •• 2 Received of Edw. Trout Cash in full of account. " 8 Received of W. D. Matthews & Co., Casii in full of account. " i Gave J. & A. Clark a Sight Draft on W. P. Howland & Co., in full of their account. " " Gave A. V. DoLaporte a Sight Draft on W. P. Ilowland & Co., in full of his account. " 5 Received of W. P. Howland & Co., Cash in full of account. " 7 Received of W. H. Knowlton & Co., Cash in full of account. " 8 Gave J. D. Laidlaw, cheque on Rank of Commerce in full of account. " " Gave cheque on Bank of Commerce for James Park's acceptance of June 14th, 1882; amount of acceptance, § ; Interest to date, $ . •' " Gave cheque on Bank of Commerce for J. D. Laidlaw's acceptance of June 23rd, 1882 ; amount of acceptance, § ; Interest to date, $ . " 'J Received Cash for Edw. Trout's note of April 25th, 1882, aud inter- est to date ; amount of note, ^ ; Interest to date, $ . " " Received Cash for Gooderham & Worts' acceptance of May Gth, 1882, aud interest to date ; amount of acceptance, :ji ; Inter- est to date, $ . *' 10 Received of E. K. Scoley Cash in full of his acceptance due to-day. " 12 Received of L. Coffee & Co. Cash in full of their acceptance due to-day. " " Gave Hawley Bros, cheque on Bank of Commerce in full of account, " 14 Received of Gooderham & Worts Cash in full of account. " 15 Gave E. K. Scoley cheque on Bank of Commerce in full of account. " " Received of J. & A. Clai'k Cash in full of their acceptance due to-day. " " Received of James Park Cash in full of his note of July 17th, 1882 amount of note, $ ; Interest to date, $ . " 17 Prepaid acceptance of July 8th, 1882 ; amount of acceptance, $ ; Discount for days ; gave cheque for balance. "18 Prepaid acceptance of July 18, 1882; amount of acceptance, f ; Discount for days, $ ; gave cheque for balance. •' 20 Paid acceptance favor Gooderham & Worts due this day per cheque. •♦ 26 Paid acceptance favor of Hawley Bros, due this day per cheque. •• 28 Paid P. & F. A. Howland Cash in full of account. THE I-nACTlCAL BOOK-KEKl'EU. 77 Augnst 2fi Paid tlio following expenses in Casli : Rent, one month, $50. " 81 Keceivcil of C Fleming Cash iu full of account. " •• Dopositcil in Uank the amount of Cash on hand. The iStudeut's Present Worth, $5118.02. QUESTIONS FOR REVIEW. >«'Wlmt in the party called upon whom a (IniCt is iiiaili! ? 11 "Where (loen his namcnpiicfir ? ' " " Wliiit (liios th(( iiccepliince ot a ilrnf t mean ? ""After the l>ia\vre accepts the ihaft, what is lie tiieii called ? ' ' ' What is the 1 irawer's Journal entry, when he makes a draft and remits it to the Payee to iipjily on account? "•What in the Ihawer's Journal entry, when he ninlics a draft and disposes ot it, for less than its face value, receiving cash proceeds ? ' '"What is the Drawee's Journal entry, when he accepts a draft ? " ' What is the Drawee's Journal entry, when he piiys in cash a draft on him at si},'ht? "»\Vhat is the Drawie's Journal entry when he pays a draft in cash, less the dis- count, inste 1 1 of accepting; it? • '•What is the J)ruweo's Journal entry when he pays in cash an acceptance at maturity? "'What is the rnyoc's Journal entry when he receives a draft to apply un uecoaut, and (,'ets it accepted? ""What is tliG Payee's Journal entry when the Drawee prepays a draft in cash, instead of aceeptiiiH it? ""What is the Payee's Journal entry when he h'lys a draft from tlio Drawer at a discount, instead of receiving it on ac- count ? Note.— Tlio answers to the al)ovo quo.stloua aru Ij ud wiiltcn out by Student auU examinod by tcauUer bcfuro yuiug ou with uext muutU, ' • » What is the Drav/ce's Day Book entry on aceeptinn u draft? ' » 'What is the Draw('r'.^ Day Hook entry on diawinj,' a (!'t days' si^ht on J. Sadler? '•»What is the Drawee's ]»ay Dook entry on jirepayiiif,' the above draft, on presenta- tion, instead of accepting it ? '•♦What is the Payee's l)ay Pook entry on receiving u time diuft, and getting it accepted ? '••What is th'o Payee's Day Hook entry on Kctting an acceptance discounted, re- ceiving the cash proceeds? '""Into how many elassea aro Bills of Ex- change divided ? ' "'Name them ? ' "What is a Foreign Bill 7 '•"Wliat is a Domestic Bill? '""What is meant by " Days of Grace ?" ' " 'What is meant by " Protest?" ""What is meant by the term "Endorse?" '"'I'or what purpose is an endorsement niad(! ? '» 'IIow many kinds of endorsements aro there? ' "'What is an endorsement in blank ? ' ' ' What is a " Special Kndorsement ?" '"'What is a Conditional llndorsement ?" '"•What is a Qualiti(Kl Endorsement?" ' ' "What is u Kestriotivc Eudorsemeut ? THE PRACTICAL BOOK-KEEPER. IPj^I^T II. ILLUSTEATING THE MOST PRACTICAL METHODS OF KEEPING ACCOUNTS, AS NOW USED IN THE BEST BUSINESS HOUSES. POSTING DIRECTLY FROM CASH BOOK. RILL BOOK, INVOICE BOOK, AND SALES BOOK. r^T^P.'JU I II ..'inuj ij««i»i m mm Hi |i' TlIK I'ltACTICAL nOOK-KKEl'KU. 81 ROUTINE OF BANKING, AND HOW TO DO BUSINESS WITH A BANK. If you tlcsire to open au accoimt with a Banlc, you call upon the Cashier or Mauagor, proviileJ either witli a projicr letter of introiluctioii, or with rofer- cuces testifying to your character and trustworthiness. If ail is satisfactory, and your account accepted, you aro I'equested to write your name in a book Icept by the Hank for that purpose, called the Sii^niature Bcgister, and you %vrite your name in the manner in wliich you are to sign your cheques. And if the account is to be opened in the name of a firm, the firm's name is to be written by each nirmber, as he will sign it in transactions with the Bank, together with his individiuxl iiaiue. The object of this is to verify signatures in case of need, as occasionally happens. All uooossary blanks, as Dicposit Slips, Pass Books, CnEQiiK Books, &c., are supplied by the Bank. Deposit Slips. — Are filled up by tiie j)erson depositing the money, by ■writing, first, the name of the person or firm that is to be credited with the deposit, and the date of sucli deposit ; second, the number of er.ch dcuoinina- tiou of Bank Notes, Cheques, and amount of Specie, according to the printed form of the Sup, — after which the total amount is written down. This Slip, together with the deposit and I'ass liook, is handed to the Iikckivini; Teller, ■^vho counts the deposit to see that it agrees with the amount on the Slip, and if found correct, the Slip is initialled by the Teller and handed back to you, •whereupon you hand it to the Lei>ank of|! Commerce. On above for 3 mos., 3 days 250 00 3 88 Account to 1)C (lL'l)ilf)l| in liodyox'. Cash. Kxiilauations. Cr. Discount.' On W. P. How- land & Co.'s note, for 81 days - - - 3 51 In posting the above from the Dr. side of Cash Ijook wo Cr. Bills Eeceiv- able account in the Ledger, because it is disposed of; also because it is the accinnit in tlic Casli Book in tlio column lieaded "Acojunts to bo credited in the Ledger." We credit Ixtekest account from the Dr. side of Cash Book THE PBACTICAL BOOK-KKKPhli, 85 Lecanse it is allowcil ua ; also because it is the account in the Cash Book in the coUimu headed " Accounts to be credited in Lodger." We debit discount be- cause it is allowed by us ; also because it is the account in the Cash Book in the column headed " Accounts to be debited in Ledger." Ex/ ,\MPr,E f). --"Day Book and .Journal entries when you discount a note at Bank, and the in-ocecds are placed to your credit. DAY HOOK ENTRY JOURNAL ENTKY. Dk. Or. Aug., 20 Discounted at Bank of Coniiucrce Jus. Park's note, due Sept. ICt.h next. ;| Discount for 20 days, < ! 3 1.'28. Proceeds placed to mycredit, !?2'J8.72 ! 80o;oo Bank of Commerce Discount - - - - To Bills lleceivable I 29872 28 300 00 Bank of Commerce is debited because it becomes indebted to us for the proceeds of the note, which is equivalent to our making a deposit of the amount. Discount is Dr. because it is allowed by us. Bills Receivable is Cr. because the note or B/R. is disposed of by being discounted. Example (j. ^•''"If this transnction were entered in Cash Book and posted thence to Ledger, tiie entries would be as foUow^s : Du. Aci'.'t' to bn croiliteil Cash. Explu nations. Bills Receivable. Disc'tcd at Blv. of Commerce James Park's note, due Sep- tember Lj. Cash. Exiilanations. Cr. On Park's note for 20 days - For proceeds of J. Park's note 1128 29872 ^\'e debit bank because it becomes indebted to us ; also because it is the account in the Cash Book iu the column linaded "Accounts to be debited in Ledger." Discount is debited because it is allowed by us, also because it is the account in the Cash Book in the column headed "Accounts to be debited in Ledger." Bir.LS Receivable is Cr. because tlie note or B/R is disposed of, also because it is the account in the Cash Book in the column headed "Accounts to be credited iu Ledger." I 'i ^1 4S it , IIM I: l|l 86 THE PaACTICAIi BOOK-KEEPER. Example 7. ssiWlien you discount an interest-bearing note, and have tbo procoeda placed to your credit, tlie Day Book and Journal Entries are as follows : JOURNAL ENTRY. Dr. Cr. DATE. DAY-BOOK ENTRY. Discounted at Bk. Com. L. Coffee & Co.'s note dated June bOtli, ult., payable three mos. af- ter date, with interest Interest !^ mos. 8 days Discount for 3-1 days - - §2 24 Proceeds to our credit - - 403 96 400 00 20 Bank of Commerce Discount - - - To Interest - - " Bills Eec'ble 408 d& 2 24: 20 400 00 Cash is Dr. because it is received. Discount is Dr. because it is allowed by us. . Interest is Cr. because it is allowed to us. Bills Keceivable is Cr. because the note or B/R is disposed of by being discounted. , Example 8. -' 3 3if this transaction were entered in Cash Book, and posted thence to Ledger, the entries would be as follows : — Dr. AcctH to bo orodited iu liudger. Casu. Explaiuitiou. Bills Eecuivable. Discounted L. Coffee ct Co.'s note at Bk. of Commerce - i Literest. Int. on above ;j 8 mos. 8 days 400 00 620 Accounts to 1)0 (leliiteil iu Loilyur. Casu. Explanation. Discount. Disc't on Coffee it Co.'s note, 84 days - - Bk. Com.' Proceeds of above to our I credit - - - 24 403 96 Iu posting from Dr. side of Cash Book we Cr. Bills RECEtvAiiLE and Interest accounts, because they ore the accounts in the Cash Book iu the column headed "Accounts to be credited in Ledger." And in posting from Cr. side of Casli Book we debit Discount and Bank aecouuts, because they are r.ccounts in the Cash Book in the column headed "Accounts to be debited iu Ledger." EXAJIPLE 9. ^33j)n,y Book, Journal, Cash Book and Bill Book Entries, upon renewing notes, iu full or iu part. When our Promissory Note or Acceptance in favor I THE PRACTICAL LOOK-KEEl'EIl. 87 of W. P, Howland & Co. is renewed for one-balf the amount, and all entries posted from Journal, the entries are as follows : DATE. DAY-BOOK ENTRY. JOURNAL ENTRY. Db • Cb Aug. 20 Renewed W. P. How- laud & Co.'h note, 1 Bills Payable - - ' Interest . - . . 1 1 1 400 00 3 00i 1 due to-day - - - 1 To Cash - - - 200 00 Gave in part payment 400 00 " Bills Pay'ble 203 00 cash - - §200,00 1 1 1 Our note at 3 mouths 1 ! 1 with interest added ' s 1 1 1 for balance §203.00 i i 1 Wo redeem our above note of §400, favor of W. P. Howland & Co., by pay- ing §200 in Cash, and giving a new Promissory Note for the remaining §200, with interest added for the time it has to run. Bills Payable is Dr. for amount of old note, because it is redeemed. Interest is Dr. because it is allowed by us on new note. Cash is Cr. because it is paid. Bills Payable is Cr. because a new Promissory Note is issued. Example 10. -3^Edw. Trout's Day Book and Journal entries, when the Cash item in the transaction is posted from Cash Book. Aug. 20 Eenewed W. P. How- land i-t Co.' 8 note, due to-day - - - Gave in part payment Cash as per C. B. - Note with interest for balance - §203.00 400 00 I Bills Payable - - Interest - - - - To Bills Pav'bie " \V. P. How- land & Co. 400 00 300 200 00 20300 W. P. Howland & Co. are credited in the above Journal entry because thev will be del)ited from Cash Book for same amount. EXAJIPLI, 11. *3 5\Vhen Cash in this transaction io posted from Cash Book, the follow- ing will be the entry : Dk. Ace ts to he ovei-Ututl iu Lodyos. Cash. Kxplauatious Accounts to 1)0 llL'l)itOll iu Lodger. W. p. ! Hnwhiud i i^ Co. I Cash. E.vplanations. Cr. On renewal. 200' W. p. Howland & Co. are Dr. because we find this the account in the Cash Book in the column headed "Accounts to be debited in Lodger." Thus being Cr. from Journal and Dr. from Cash Book, the account will now balance. ■ii !88 THE PnACTICAI. BOOK-KEEPER. ExAlIPLE 12. '^"Edw. Trout's Day Book nncl Journal Entries, -when llic Cnsh item in this transaction is posted from Cash Book, and the Bills Payable from Bill Book. DATE. DAY BOOK KNTRY. JOURNAI, KNTUY. J)n. Cr. Aug. 20 Ilencw'dW. p. How- land & Co.'s note, duo to-day - - Gave in ])art pay- ment. Cash ])er C. B. Now note with interest as per B.B. for bal- ance. 100 00 Bills Payable - - Intorost - - - ToW.P.Howland&Co 400 8 00 00 403 00 W. P. Ilowlaud it Co, are credited in the above entry for - They will bo debited from Casli Book for They will be debited from Bill Book for amount of new note §403 200 203 Example 18. = ^"When jio.stuipr from Bill Book — taking the same transactions. Wlien iHsueil, ]MLLS PAYAiSLE. Tlip account to bo debited ill LudijL'r. For whtit given. Wlicn duo. Amount. Aug. 20 W. P. Howland & Co. llenewal Nov. 23. I 203 • 00 W. P. Howland & Co. are debited from Bill Book for And you will find them debited from Cash Book for $203 - ' . 200 $403 Then, if you turn to your Journal Entry, you will find the Gr. for this amount. We will now take W. P. Howland & Co.'s entries from the various books, for the same triiusactions. Example 14. 2 3* Their Day Book and Journal entries, if tlie transactions were posted from the Journal alone, would be the following : JOURNAL ENTRY. Dr. Cr. DATE. DAY BOOK. Aug. 20 Edw. Trout has re- newed his note, our favor due to- day - - - - ' Eoceiv'din partjiay- ment. Cash >:2(M Now note with inter- est (^ three nins., for balance, t'2u;3 400 00 Bills Eeccivable Cash To IJills Receivable " Interest - - I I 20300 200 00 i 40,1 00 3 OO THE rUACTICAL BOOK KEEPEU. 8a Bills Receivable is Dr. for new note, because it is received. Cash is Dr. because it is received. Dills EecGivablo is Cr. for old note, because it is disposed of. Interest is Cr. because it is allowed us. EXAMI'LK 15. "•'"'W. 1', llowlaud & Co.'s Day Book and Journal entries when the Cash Item in this trr.usacLiou is posted from the Cash Book. DATE. DAY BOOK. JOUKNAT, ENTRY. Dlt. Cu. Aug. 20 Edw. Trout has re- newed his note ! 1 Dills rioceivable Edw. Trout 203 00 200 00 duo to-day - - '• 400 00 To Dills Receivable i 400'00 Eeceiv'din part pay- " Interest - - y'oo ttieiit. Cash as per i C. D. Note at three mos., inter- est for bal., $203 : ! i I In the above Journal Entry Edw. Trout is Dr. for $200, and if you turn to Cash Book j'ou will lind iiim credited for same amount, thus babiueiiii,' this. Example 10. 2-4 "When Cash in this transaction is posted from Cash Dook the following will bo the entry. Dii. Casu. Cash. Ca. Aco'ts to bo croiUtod ill Lt^ilh'ui'. Explanations. Ace'ts to bo (lobitotl in Ijo l^,'oi-. Explanutiors Edw. Trout ! On renewal 200 00 Edw. Trout is Cr. from Cash Book for $200, which is the amount with which ho is debited in Journal. Example IT. 2HW. P. llowlaud .c Co.'s Day ]5nok luid Journal entries when posting the Cash item fi'om Cash Book and Bills Heceivable I'roin Bill Book. JOURNAL ENTRY. De. Cb. DATE. DAY BOOK. A'ig.'20 Edw. Trout has re- Edw. Trout - - ' 1 ■103,00 1 newed his note. To Bills lieccivablo 400 00 our favor, due to- " Interest • - 1 300 day - - - - 400 00 Eceeiv'din]iartpav- mentcashas C.B. 1 ! Note at three mos., with interest as i ]ier B.B. for bul- ; , ance. 1 ! 1 r I. ill '\-\ 90 THE PnACTICAL BOOK-KEEPER. ii Eclw. Trout is Dr. in above Journal entry for ■ By turning to Cash Hook you will find him Cr, By turning to Bill Book you will find him Cr. 8200 203 Example IS. When posting from Bill Book, taking same transaction, their entry would bo as follows : DILLS liECEIVABLE. Whrn Beeoivod. Account to 1)0 croditod in Lcilser. For what Recolvod. Wbon dot. ^onnt. Aug. 20 Edw. Trout. Renewal. Nov. 23. 208 00 Edw. Trout is credited from Bill Book for new Note Edw. Trout is credited from Cash Book for new Note Edw. Trout is debited from Journal entry $200 200 $103 Example 19. s 4 sjf ■\y. p. Rowland S: Co. had discounted tliis note at Bank of Commerce, the Day Book and Journal entries, upon having it renewed, would bo asfollows: date. day IJOOK ENTRY. jOUBNaL ENTRY. Db. Cr. Aug. 20 Retired Edw. Trout's Edw. Trout - - 400 00 ' note due tliis day per cheque, and renewed said note To Bank - 1 400 00 1 Cash ... - 200 00 in part. Bills Receivable - 203 00 Rcceivcdin part pay- To Edw. Trout 400 00 ment, Cash S'lOO 1 " Interest ■ 8 00 Note at three mos., with interest for balance, 6203, \ Edw. Trout is Dr. in first Journal entry because we pay his note at Bank for him, therefore he becomes indebted to us. Then lie pays us that indebted- ness by giving his Promissory Note for §203, and the balance in Cash, $200; therefore we Cr. him. Example 20. 2<''Their Day Book and Journal entries for same when they keep no Bank account in Ledger, or if they retire the note by paying cash. DATE. DAY BOOK ENTRY. JOUBNAI. ENTRY. Dr. Cr. Aug. 20 Retired Edw.Trout's note due this day. Paid Cash - - Received in part pay- ment, Cash §200 Note, with int., at 3 mos. for bal. S203 400 00 Edw. Trout - - To Cash - Cash - . - . Bills Receivable - To Edw. Trout " Interest 400 00 200 203 00 00 400 00 400 00 3 0J THE rnACTICAL DOOK-KKEPEIl. 91 EXAMPLK 21, '-•^Tlioir Day Book and .Tonrual entries when the Cash items in this trans- action are posted from Cash Book. DATE. DAY nOOK ENTRY. JOURNAL ENTRY. Dll. Cr. Aug 20 Retired Edw.Trout's note due this day, paid Cash as per C. B. - - - Received in part pay- ment, Cash as per C. 13. ... Note at three mos., ■with interest, for balance, §203. 400 00 Bills Receivable ■ 203 To I'^dw. Trout " Interest GO 200 on 8 00 In this case the Cash items are posted from Casli Book. Bills Receivable is Dr. fo, new note because it is received. Edw. Trout is Cr. for $200, because he pays this amount of indebtedness Ic us. Interest is Cr. because it is allowed us. Example 22. stsWhen the Cash items in this transaction are posted from Cash Book, the entries are as follows : Dr, Arr.'ts to be oroilit- cci in IjuilHur. Casu. Kxplanation. Cash. Acc'ts to 1)0 (Icbit- uil iu Loilfior. Explanation. Cb. From th.e Cr. side of Cash Book we debit Edw. Trout because ho becomes indebted to us ; and from the Dr. side of the Cash we Cr. him because ho pays us part of that iudobteduess, and by turning to the Journal you will find him Cr. for the balance of that indebtedness. Example 28. 2*6Day Book and .Journal entries, when the Cash is posted from the Cash Book, and Bills Receivable from Bill Book. DATE. DAY BOOK ENTRY. JOURNAL ENTRY. Dr. Cr. Aug. 20 Charge Edw. Trout with interest on note renewed to- day - . - - 8 00 Edw. Trout - To Interest 8 00 00 This is the only entry necessary in the Journal as the other debits and credits come from the Catj Book aMd Bill Book. ■I j (i IMAGE EVALUATION TEST TARGET (MT-3) /. {./ ^ .P^ U. ^o V. 1.0 I.I 1.25 S^ |2.8 IM llll£ «£ IIIIIM U IIIIII.6 ^ i" -* w *^ vQ A "# ^'^ V >^ Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY 14580 (716) 873-4503 ^V (V L17 \\ ^9) V ^ C^ U.x ^ i 92 the pbacxical book-keepea. Example 24. When w« post from Bill Book, the Gash Book will be the same as on page 91 . BILLS KECEIVADLE. Wbenroc'd. The person to be credited. Fur what received. ^Vfaen duo. Amount. Aug. 20 Edward Troat BcnewoL Nov. 23. 208 OQ From the Cash Book Edw. Trout is Cr. for .... §200 Fiom the Bill Book Edw. Trout is Cr. for .... 203 From the Cash Book Edw. ''?foat is Dr. for - - - - $-100 From the Journal Edw. Tioat is Dr. for 3 Example 25. "♦^The Day Book and Journal entries, when this note is renewed for the full amount, and all entries pubted from the Journal. DATE. DAY-UOOK ENTRY. JOUB.N.U. ENTRY. Dr. Cr. Aug. 20 Renewed our note, favor of W. P. How- land & Co., due to- day Gave in pavL cut a new note at H mos. with int. added. •ioo:oo Bills Payable - - Interest - - - - To Bills Pay'ble 400 00 COO 400 OQ We redeem the old note by giviug a new note, with interest added for the time it has to run. Therefore, Bills Payable is Dr. because the old note is redeemed. Bills Payable is C". because a npw Promissory Note is issued. EXAMPI.K 2G. =»-"*Edw. Trout's Day Book and Journal entries when posting from Journal and Bill Book. DATE. DAY-nOOK ENTRY. JOURNAL ENTRY. Db, Cr. Aug. 20 Renewed our note, favor W. P. Uow- land & Co., due to- day Gave inpnyuu'ut new note with inteiust at 3 mos., as per Bill Book. •lOi) UU li Bills Payable - - Interest - - . . To W. P. How- laud I'i: Co. 400 00 GOU 400 00 W. P. Ilowland & Co. are credited because we find them debited from Bill Book. Thus, being credited from the Journal, and debited from the Bill Book, " the account will now balance. THE PKACTICAL BOOK-KEKPCB. 93 ' Example 27. Edw. Trout's entry horn the Bill Book in this transaetion is as follows : Data. BILLS PAYABLE. The Account to be debited. For what Kiren. Wbca da*. Amcnnt^ Aug. 20 W. r. Howland & Go. Renewal. Not. 28. 40600 From the Journal W. P. Howland & Co. are credited Bill Book •' " " debited $406 406 We will now take W. P. Howland & Co.'s entries from the Tmrioos books, for the same transaction. Example 28. •»"»W. P. Howland & Co.'e Day Book and Joomal entries, if the transac- tion were posted from the Journal alone, would be the following : DATR. DAY BOOK ENTRY. JOUBNAL KNTRT. Db. Cb. ' 1 Aug. 20! Edw. Trout has re- Bills Receivable 40G0U ^ uewed his note, our To Interest - - ' i 1 6 00 favor, due to-day. 400 GO '• Bills Receivable ! 40U (Kl Beceiv'd in payment 1 1 new note at three 1 mos., with inter- 1 1 est added. i 1 ! 1 The old Note or a Bills Receivable is disposed of "by receiving a new Promis- sory Note, with interest iiddcd for the time it has to run. Therefore, Bills Receivable is Dr. because we receive another person's Promissory Note. Interest is Cr. because we are allowed interest. Bills Receivable is Cr. because a Bills Receivable is dispo.«ed of. KxAMiT.i; 20, -^'W. P. Howlaiul .^ Co.'s Day Book aud .Journal entries when jMisting from Journal ami Bill Book. DATE. DAY BOOK ENTRY. JOfRNAL ENTBY. Db. Gb. Atig.20 Edw. Tront has re- newed liis note, j our favor, due to- 1 day .... Reci'iv'd in i)aym(>ut new iioto with in- terest added at 3 mos. as per Bill Book. i I 400 UO Edw. Tront • - - To Bills itccciv'blo " lute I est - - 406 00 \\ 400 0(1 0(1 Edw. Trout is Dr. because wo find him credited from the Bill Book. Thus being debited from the Jomiial and credited from the Bill Book for same amount, the account will bulaucc. 94 THE PRACTICAL DOOK-KF.EPER. Example }K). W. P. Ilowland &, Co.'s entry from Hill Book in this transaction, would be as fuUuws : Date. HILLS llECEIVABLB. Tbo scennnt taU)cro<3itcil iu LodKer, For wbat roi'i I vol. When due. Amount. Aug. 20 j:a\v. Trout. Hcuowal. Nov. 23. 40G 00 From Journal Etlw. Trout is debited fur - '• Bill Book Edw. Trout is credited for $106 400 Example 81. '**W. P. Howland it Co.'s D.iy Book iiud Journal entries, if they had discountud this note iit Biiuk of Commerce, aud poatiug from the Jouru.il aloue, would bo as follow.s ; date. day book e.ntby. jouiinal ENxnY. Dr. Or. Aug. 20 Retired Edw.Tront's uote, duo to-day. Paid Casli • ■ "- Beceived iu payment new uoto at three mouths with in- terest. 400 00 Edw. Trout - To Cash Bills Receivable To Edw. Trout " luterest 400 00 400 00 400 00 400 00 o|oo Sec explanation for Example 20, page 00. W. P. llowlan 1 A Co., on retiring above note, would seud a statement with the new note for signature to Edw. Trout, something similar to the following : Aug. 20 To Cash to retire your Note .... §100 *' '• luterest on renewal (» Or. •• •' By Note at three mouths ^100 $400 Example 81. 883W. p. Ilowland & Co.'s Bay Book aud Journal entries when the Cash items are posted from Cash Book. DATE. DAY ItOOK ENTBV. JOUBNAL ENTRY. Dh. Cr. Aug. 20 Retired I'.dw.Trout'B note due to-day - Paid cash as per C.B. Received inpayment new note at three mos.,withiutcrest 400.00 Bills Receivable To Edw. Trout " luterest 400 00 400 00 6'00 See explanation for Example 21, page 01. TUE PKACnCAL DOOK- KEEPER. 05 00 00 00 EXAJSTLE 88. '•^iV. P. Howland & Co.'s Day Book and Jonrnal entries when the Cash item is posted from the Cash liook, and the new Note from the Bill Book. DATE. DAY-BO«>K KXTBV. JDfKSAI. KXTBY. Dr. Cb. Aug.'20 Chnrge Edw. Tront ;! interest on note ' received to-day - GOO Edw. Tn.ut - - To lutcrest COOlj 600 For explanation sec- Example 23. ]>a^e ill. EXAXTLE 84. »**\Vhen the Cash item in tlus trau faction is posted from Cash Book, W. P. Ilowlaud & Co.'h ciitrv is as foliowa : Dh. Acc'tsto l)c crp'litoil in Lt)>lgur. Cash. F.xpUnntioOA. II Edw. Trout is debited because we retire his uot«, therefore he becomes indebted to us, also b-'cause it is the aconnt on Cr. side r f Cash Book, in col- umn headed " .Account to be debited in Ledj^r.'* Example- 85. When the note is entered in Bill Book aud posted therefrom, W. P. IIow- lauu &, Co.'s entry is as follows : BILLS RElElVir.LK. When recuivvd. Account to be crp'Ute.1 in L».I«M'. For what raoeived. Whan dne. Amount. Aug. i BencwaL For expluuutiou bCc Example UU, paje Ul. Nov. 23 ; IOC 00 RETAIL GllOCERY BUSINESS. POSTING FKOM CASH BOOK, BILL BOOK AND JOURNAL, nAVI!Itt THE CASH BOOK AND JOURNAL RULKD WITH SPKCIAL COLUMNS. Journal-Day Book la rulod with three money columns — the first for all Debits, the second for all Ciedits excepting Merchandise, and the third for sales of Merchandise that are entered in this book. Consider all sales to ba on account, unless payment be mentioned. Interest and Discount to be computed at 7 % per annum, on tlie basis of 805 days to the year. In posting from the Journal Day Book the sum of the items in the column headed " Sales," is to be posted to the Cr. side of " Merchandise," at the end of the month. Place the check mark >/ in the Ledger folio column opposite each sale. THE PRACTICAL BOOK-KKEI'ER. ToBOKTO, September lat, 1882. 99 Ob. Ch. Sat.ks. 1 UT. Interest, 10 28 To Student, 10,2H| Interest on 0. C. Watson's note from July 28th last. i 1 8700 00 Merchandise > 1 To D. M. Wilson, - 8700J0O Anioant invested as per In- ventory. <> 175 00 1 Office furniture, To J. St J. Taylor, 175 00 Bought of J. & J. Taylor, safe for office - $175 o 8 64 W. Monro, V To Merchandise, Sold Wm. Munro 50 lbs. Granulated Sugar @ lie. 6i lbs. Y. H. Tea @ 57c. 6 28 8 64 J. D. Davis, V To Merchandise, Sold J. Davis : 7 lbs. Currants @ 6c. - 15 " Rico @ 4ic. 24 " Pulv, Sugar at" 12c 5 boxes D. Herrings @ 2oc >< 8 88 s 23 W. Dunn, V To Merchandise, • 888 Sold W. Dunn : 10^ lbs. Tea @ nOc. 10 " Sugar @ 10c. 4 " Java Collee® 27c Amounts forward - - ' 8897 25 8875 00 22 25 im 100 THE PRACTICAL BOOK-KEErCR. \ I USE OF CASH BOOK AND EXPLANATIONS FOll TOSTINO TO Li:i)(ii:U. ••"Tim C\Bn Book is kept for the purpose of rooonling all receipts and diBbnriicnicutB of cash. ' ''' ' Wlion CaHh is received it is |)luccd on the Dr. or leftlinnd uido ; when paid out, '^"on tiio Cr. or ri(;ht-liaiKl side. If this book ia kept accurately the '-''oCr. side should novur bo the liii^^or, aud the dilTcreiice between the footings of the two sides, at any time, should be the amount of Cash oil liand, which is verified by counting the money in your possession belonging to tiio businiss. acujf ^j ^„y ^jm^ the Cr. side is the larger, it sliows either that you have failed to enter on the Dr. side some amount that youbave received, or that yuu iiavo entered on the Cr. side more tliau you have paid out. ""In posting from the ordinary Cash Book, the acomits on the Dr. side in column headed " Accounts to be credited in Lodger," are to bo credited "By Cash," fur the amount which is in a line with the account; and tiio accounts on the Cr. side in column headed "Accounts to bo debited in Ledger" are to be debited " To Cash " for the amount which is in a line with the account. ""'When you have special columns ruled off in Cash Book, as is the case for September, the footings of these columns are posted to the debit or credit side of the accounts respectively. In poKtmg from t'.ie Cash Book, as illustrated on pages 102 and 103, we take the account " Slmieut," which istlic first account on the Dr. side in the column headed " Accounts to be credited," and credit it " By Cash " $5000, ])lacing Student's Ledger folio in the column headed "Ledger folio in Cash Book," also the folio of Cash Book in Ledger, in the small column to the left of the dollars column in " Studeiit'3 account." We Cr. Student, (one of the partners) for §5000, being part of his investment ; (see rule for crediting partners), also because it is the account in Cash Book headed " Account to bo credited in Ledger." The next accounf is D. Wilson (the other partner), same explanation as above. W^e take tlie next account on the Dr. side, which is " Bank of Commerce," and credit it " By Cash " §75, placing the Ledger folio of this account in the column headed "Ledger folio" in Cash Book, also the folio of Cash Book in Ledger in the small column to the left of the money column in Bank of Commerce account. We Cr. Bank of Commerce for all cheques given, also because it is the account on the Dr. side of Cash Book, in the column headed " Accounts to be credited in Ledger." The next account on Dr. side is " Merchandise," which has a special column ; if wo were to Cr. each entry of " Merchandise " singly, it would amount to the same as crediting the footing of this column " By Gash " for $G90.04, therefore when wo come to an account having a special column, we place in the column headed "Ledger folio " a check mark thus V, to show that we are to post the footing of the column to the Cr. side of the account. Now we take the account " Bank of Commerce," which is the first account on the Cr. side of Ciish Book in the' column headed " Accounts to be debited in Ledger." This account has a special column, and we therefore place, in the Ledge' ^olio column, the check mark v/, and post the footing to the Dr. side of the aoco' -. We take the next account on the Cr. side, which is " Office Furni- ture," and debit it in Ledger " To Cash" $75, because it is bought for Cash, also because it is the account on the Cr. side of Cash Book in the column headed " Accounts to be debited in Ledger." From the above explanation8 the student should be able to continue the posting from this book. THE rnACTICAL DOOK-KI^hP^R. 101 BILL BOOK. ' • ' The UHe of tlic Bill Book iR to keep a record of nil Bills Rpcci vnMe rccni vccl into the bnsinoHsnnd all Bills Payable iHsnod by tlio biiHincsH, sliowinf? on wlioeo account sucli notes arc received and issued, wlicip payable, when due, and when and how disposed of, or rodoemud. ^''' 'In jiohtinj? from the Bill Bimk as illnstiated on pages 101 and 10.'>, from the liills Ileceivablo Ride wo place ^l.TjM'i.lO on the Cr. «ido of " Student's " account, i)utting the Sludent'B Ledger folio in column headed " ijedger Folio " in Jiill Book, and folio of Bdl Book in Biuall column to left of money column in " Studont'a " account in Ledger. We credit Student because the Bills Boceivahlo for $l,ri82.10 is part of his investment (See rule for crediting partner), also hecauso it is the account in Bill Book in the column headed *' Accounts to bo credited." From the Bills Payable side we jdnce $170 on the debit side of " J. & J. Taylor's" account, putting their Ledger Folio in the colmnn headed " Ledger Folio " in Bill Book, and folio of Bill Book in the small column left of money column in J. it J. Taylor's account in Lodger. We debit J. & J. Taylor for $17C, because we find them credited in Journal for same amount, also because it is the account in Bill Book in the column headed " Accounts to be debited." After you have posted the several Bills Receivable to the credit of the projjer accounts, and the several Bills Payable to the debit of the proper accounts, you then add up the Bills Receivable and Bills PnynMe, placing tiie footings of the accounts to the debit side of Bills Receivable and to the credit side of Bills Payablo respectively. In discounting sight drafts. Banks charge { 1', or 25e. on amounts less than $100, and | % on drafts at 8 days after sight. 102 THE ritACriCAL UOOK-KEEPRR. bn. CASU. Datb. 1882. 8c|>t. Sept. 11 LKIXIKU TITLE «H Ai'C'nrNTH TO UK CUKIIIIXO IN liKliuKII. Stiiilrnt • • • 1). Xl. WilHOll - Uniik ufC'oiiiincR' Meri'lmiidiKv IJilU l(L'CL'ivul)lc ImUtchI . . - Mui'flmiiiliso \V. Mmiro - - VV. Dunn - - Dills Urccivitlilv Mi'ri'liun lialiuicc uccouiit In full of iiccouMt • ■ Siiirs to-iluy .... Clmiuc No. 2 - • • • On account .... Suit's to-day . . . . on V Fostcd to Cr. of Merchandise Dnlanco Caru Halm. 87 101 50 60 04 10 IIU 114 85 a? '6U0 24 SO 40 10 04 Sundries. 5000 8UIK) 75 lfi:»2 27 e 8 54 825 44 C3 35 00 00 00 1!» •J-i M (lO 66 (V> «l> 00 00 10104 too 60 U4 10S54 r>k 613 — •J8 TUB PliAOriC.Ui IIOUK KKKI'KU. CON Til A. 103 Ch. pATt 1883. Sept. LEIUIKII TITLE OH ActlllNTH TO UK hKIIITKU, IN tiKUOKR. EXI'I.ANATION. Uniik of Commerce UtIIco furnitiiru Dank (>( Comiiivrco DiRcoiint - • - EspuiiHO ■ ■ • . Bank of Commorco 1)0. Do. DlHconnt - - F ■:m . . . . DiHOount • • - Dank of Commorco Expense . . . . Bank of Commcrco I I. - Di'poHitcil ...... liouK'it of U. Hny it; Co., per C 111 (|UI< Procf< c|s of Nolo No. 1, dii- coiintcil Didn't, "i7 ilii.V!«on Note No. 1 l''i'i'i»;iit on J. Turner ik Cu.'r Iiivoiua DeiM)!'itL'(l I'nH'i'ciU of Noto No. '2 iliwM Disc't )>3 dnj-'* on Nolo No. 'i Cui'ta^'f on W, H. Dunnis'H |)ur(')iiiHo DiHcount on Kii^lit Draft up- on \V. ti. I>t!nnii* - - ■ ProcccilM of Sii^'ht |)riift upon W. H lUnni^ . . . . Inxuriiiu'(> on Htouk nml olliiv funiituro Dcpoaili'il Posted to Dr. of Bk. of Com. " " KXIK-MIHO 'Balance on hand ■ . . ■ -/ y 13 r Bank, 7000 no 15 1» C8 W inonoo 324 50 •70 00 (;:j:no I! 150 00 10071 fli 7.". ! I ICO 0873 10071 15» 7fl<"0 •0132H 10R,54 "'» 104 THK PRACTICAL UOOK-KEEPEH. i3ILLS •^ u On wln)SG Account or Account to be Cicilittid in LfiL'tT. I'RAWEn { Fob what Oli I E.NDOKSKR. ( llECKIVKlJ. WllEUE I'ayadi.k. Year 1 Sep. 2 .'I •1 f) (> 7, l! Student !) W. H. Dennis. 11 15. K. iivis. an W. Munio. '• \V. Mitchell. Geo. C. Watson Part Investment j Standard Bank. ; In-2 Ourselves. Merchundiac. i liank ofOomaiercc. i u j '" ' '•' '• •• " ' In full of aci;'nt. j '• •■ " BILLS TS U 3 ^ C H o s r- V5 vf- On whose Account or Account to be Debited in Ledger. Dhawkk OK Makeu. 1""0I1 WHAT GlVi-N. Where Payable. Year Sep. ' 2] J. A .1. Taylor. | 5; -las. Turner & Co. j G' Frank Smith k Co. i y Smith & KoiKhley. | 15 Perkins, Ince A Co. i 20; A. Harvey & Co. | 22 .Tohn Morrison. 21». Frank Smith & Co. \ Ourselves. Safe for Ollice. Merchandise. Dank of Commerce '1882 HE Year l.s-> THE PRACTICAL BOOK-KEEPEIl. RECEIVABLE. 105 Time. WHEN DUE. 1 3 WUK.N AND Date. II a a 'A S. c 3 3 a. 1 31 15 21 23 13 13 > 8 a a o a < How DiSPOSEb OF. July Sep. 28 4 12 18 20 3U ands 30" 3mo 2 " snds 10" 10" 18 82 1532'l9 54 ()5 47,50 18:7.i 3429 25 05 3102 1743 94 Sep. 4 5 13 19 DiH.atBkofC'm.' ti »l .« »t tl it ToDr.ofC.Itoc'le ar 82 P.VFE. ;cp. 1 1 Time. ! 2' 4rao 1883 5 4nio ! l( 4nio tt '.I 2 " 1882 1.-. •> " U •20 ;ioas t( •J--' 3mo it •_)(| 2 11 it PAYAP.LE a La> AYHEN DUE. , I I I l«l «!5-'"2 5-3' = ,^ &H ,«-.-< p.^, -i ,-i < -Xi ^■?'|!^ c5'>5 12 ;i8 23 2 s a o WUKN AND IIo'v lti;iiKKMl'.l), 175'0(i: 14177 ls7 5.") 115 5",). 2r.5 8() 2.".l 3H 2111100 170 701 1510 9H ToCr.ofB.ray'lo •Rorl Ink. ' ^i l! 106 THE PRACTICAL BOOK-KEEPEB. Toronto, Septembeb 1st, 1882. The Student and D. M. Wilson have formed a co-partnership for the pur- pose of conducting a Betail Grocery Trade under the name and style of Student & Wilson. Gains and losses to be shared equally. The Student's effects are is follows : Cash amount invested as iier C.B., $5000. A note, signed by Geo. C. Watson, payable three months from July 28th last, at Standard Bank, Toronto, with interest at 7 per cent, per annum, 115552.19. (B. B. J. & C. B.) 1st. D. ^I. Wilson's effects are as follows : Cash amount invested as per C.B., $3000; Mercliandise, a^ per Inventory, §3700. (C. B. & J.) 1st. Engaged T. W. Cameron and W. Denison as clerks, at a salary of Fifty Dollars per mouth each. (Memo.) 1st. Deposited in Bank of Commerce, Cash §7000. (C. B.) 1st. Bought of Robert Hay k Co.. Toronto, Funiiture for office. Gave our cheque for same, S75. (C. B.) 1st. Bought of J. ct J. Taylor, Toronto, Safe for office, §175. (J.) 2XD. Sold W. Munro, City, 50 lbs. Granulated Sugar @ lie; 6i lbs. Young Hyson Tea, @ 57c. (J.) 2nd. Sold J. D. Dnvis, City, 7 lbs. Currants @ Gc; 15 lbs. Rice @ 4ic. ; 21 lbs. Piilv. Sugar @ 12i\; 5 boxes D. Herrings @ 25c. (J.) 2nd. Sold W. Dunn, City, 10^ lbs. Y. H. Tea GOj. ; 10 lbs. Sugar @ 10c. j 4 lbs. Java Coffee (rV 27c. (J.) 2XD. Cash sales to-day, §87.50. (C. B). 4th. Discounted, at Bank of Commerce, G. C. Watson's note, dated July 28th. Discount for days. Proceeds to our credit at Bank. (C. B.) 4tii. Gave our Note to J. & J. Taylor, at 4 months, for Safe purchased on 1st inst. (B. B.) 4tu. Sold W. H. Dennis, Barrie, Out., 2 Bbls. Refined Sugar, 281-22, 280-21, 6G7 43 = 624 lbs. (Vi 10c. ; 1 box C. Friend §2 25. (J.) 4th. Bought of Jaiuos Turner & Co., Hamilton, Out., 1 half Bbl. Crown Syrup. 18 J gals. @ 76c.; 5 boxes pure Starch H'J, 87, 3!), 40, 87 = 192 lbs. @ G^c. ; 5 bis. Granulated Sugar, 281-21, 291-22, 294-24, 284-21, 281-22, 1481 110= 1821 lbs, @ 9c. Paid Cash for freight, §12.60. (J. & C. B.) THE PBAOTICAL BOOK-KEEPER. 107 4Tn. Cash sales to-day, $101.60. (C. B.) Sxn. Deposited, iu Bank of Commerce, Cash $1000. (C. B.) 6tu. Sold W. Brown, Chatham, Out., 100 lbs. pare Starch, @ 8c. ; 10 gala. Crown Syrup, @ 80c. ; 1 bbl Grauulated Sugar, *281-21 = 2G0 fe lie. (J.) 5th. Accepted .James Turner & Co.'s draft, at 4 months after sight, payable at Bank of Commerce, here, for Invoice of the 4\h iuataut. '^B. B.) Ctu. Received of W. Muui-o, City, Cash to balance accoaat. (C. B.) Cth. Iteceived of W. Dnnn, City, Cash to apply on account. (C. B.) 6th. Received of W. H. Dennis, Barrie, Out., Note at 2 mos., payable at Bank of Commerce, here, to balance account. (B. B.) Discounted, at P^nk of Coi»merce, W. H. Dennis's note. DLsCJUUt days. Proceeds to our credit at Bank. (C. 13.) UTU. Cash sales to-day, $94.10. (C. B) Cth. Bought of Frank Smith & Co., Toronto, S half chests Congou, Tea, 79-17, 241 80-18, 82-17, 62 = 189 lbs. @ 65c.; 3 half chests Oolong, 59-10, CO-9. G2 10, 181 29 = 152 lbs. @ 65c. Cth. Sold W. H. Dennis, Barrie, Ont., 200 lbs. Young llysou Tea (a GOc. ; 150 lbs. Oolong Tea (r? U7c. ; 150 lbs. Congou Tea (<« 70c. Cartage to depot paid iu cash, 60c. (J. & C. B.) Cth. Gave Frank Smith & Co. our note at 4 mos., payable at Bank of Commerce, here, for Invoice of this date. (B. B.) ()TH. Ca-sh sales to-day, $110.:i4. (C. 15.) 7iu. Made sight draft on W. H. Dennis, payable at Bank of Toronto, Barrie, to balance account, and discounted same at Bank of Commerce, here. Collection charges, §1.00. Proceeds to our credit. (C. B.) 7tu. Sold W. Muuro, City, 25 lbs. Almond Nuts (ff 30c. ; 2 lbs. Whole Cloves @ 43c.; 7 lbs. Nutmegs @ 55o. (J.) 7th. Received of W. Brown, Chatham, Oat., Cash to settle his account. (C. B.) 108 TUB PRACTICAL UUOK- KEEPER. TTH. Sold W. Brown, Chatham, Ont., 5 doz. best Ess. Lemon @ *1.75 ; 5 doz. best Ess. Vanilla & $2.50 ; 100 lbs. Pulv. Sugar @ ll^c. ; 100 Iba. Granulated Sugar @ lie. (J.) 7th. Cash sales to-day, $111.20. (C. B.) . 8th. Effected insurance in Boyal Fire Ins. Co. on Merchandise in stock this day, $1000; ou OtHce furniture, books, &c., $200. Paid premium per cheque^ 1^ per cent. (C. 13.) 8th. Sold W. Muir, City, 8^ gals. Crown Syrup @ 80c.; 250 lbs. Granulated Sugar @ lie; 10 lbs. Bhick Pepper ( 12c. ; 10 lbs. Prunes & 10c. ; 5 lbs. Sal Soda (ft, 4c. ; 40 lbs. Val. Raisins @ 15c. (J.) Otii. Shipped per C. V. R. to D. McLachlan, Chatham, Ont., per his order of the Gth iust., 50 lbs. Icing Sngui- 1' 12Ac.; 20 lbs. Prunes S lie; 10 lbs. Maccaroui e' 15c.; 20 lbs. Valencia Raisins @ 15c.; 20 lbs. Gunpowder Tea t^ 60c.; 20 lbs. Java Coffee © 40c. (J.) 9th. Gave Smith & Keighley our note at 2 mos., payable at Bank of Commerce^ here, for purchase of this date. (B. B.) Oth. Cash sales to-day, $07.10. Balance and rule off Cash Book, bring balance down for second week and post to date. 11th. ^ Deposited in Bank of Commei-ce, Cash $100. THK Pa^CIICUt BOOK-KKEPBB. 10» llTH. Iftule Bight draft on D. McLwhlmn, Chatham, Ont., to balance ■eeonnt, 'and left it at Bank of Commerce for eoUection. (Memo.) llTB. Made draft on B. E. Gallagher, Hamilton, Ont, at 80 days after eight, payable at Bank of Commerce, here, to balance his account, and sent it to him for acceptance. (Memo.) llTB. Sold W. Mitchell, City, 15 lbs. VaL Raisins @ 14c. ; 10 lbs. R. A. Tobacco @ fiOc; 20 lbs. Prunes (3 lOe. ; 20 lbs. Granulated Sugar at 12o. (J.) 11th. Received of D. Moore, City, Cash in full of account (G. B.) 11th. Cash sales to-day, §109.12. ^C. B.) 12th. Received of W. Muir, City, Cash to apply on account, 822. (C. B.) 12th. Sold W. Monro, City, 10 lbs. Ahnond Nuts at 20c. ; 4 lbs. Whole Cloves @ 45c. ; 3 lbs. Nutmegs at 55c. ; 20 lbs. Icing Sugar Q I2ic. (J.) 12th, Shipped per N. R. R. to W. H. Dennis, Barrie, Ont, per his order, 100 lbs. Gunpowder Tea (g 54c. ; 80 lb?. Java Coffee at 87c. ; 90 Ibsi Oolong Tea @ 5oc. Cartage to depot paid in Cash, 25c. (J.) 12rH. Received of W. Munro, City, Cash to apply on account, $17.20. (C. B.) 12th. Cash sales to-day, $8a95. (C. B.) 13th, R. E. Gallagher returned draft made on him llth instant, accepted. Date of acceptauce September 12th. (B. B.> 13th. Sold Goo. Devine, City, 40 lbs. Young Hyson Tea @ 60c. ; 20 lbs. Java Coffee (5. 40c. (J.) 13rH. Discounted at Bank of Commerce. R. E. Gall.iglier'e acceptance. Discount for days. Proceeds to our Cr. at Bank. (C, B.) 13th. Received of W. Mitchell, City, Cash to apply on account, §10. (C. B.) 13th. Sold W. Muir, City, 1 Box Benson's Com Starch 40 @ 9c ; 10 gals. Eng- lish MrH Vinegar @ 5Uc. ; 1 case Ginger © §8.75. (J.) 1 110 THE PRACTICAL BOOK-KBEPEB. 18tu. Made a sight draft on W. H. Dennis, Barrie, Ont., payable at Bank ol Toronto, Barrie, Ont, for Invoice of 12tl), and discounted same at Bank ol Commerce here. Collection charges, 48o. Proceeds to our credit. (C. B.) ISru. Cash sales to-day, $70.14. (C. B.) 14tu. Bought of Perkins, Inco & Co., City, 5 half-chests Congou Tea, 79-18. 89G 80-17, 77-17, 79-17, 81-18, 87 = 809 @ 54c.; 4 half-chests Ooioug Tea 69-14, 288 61-15, 60-14, 58-15, 58 = 180 @ 55c. (J.) 14tu. Deposited in Bank of Commerce, Cash $200. (C. B.) 14tu. Sold Geo. Deviue, City, 80 lbs. Oolong Tea @ 60c. ; 80 lbs. Congou Tea @ 62c. (J.) 14th. Sold W. Muuro, City, 10 lbs. Ooloug Tea @ GOo.; 10 lbs. Cougou Tea <3 62c. (J.) 14tu. We are advised by Bank of Cummerce that our eight draft on D. Mc- Lachlan, Chatham, Ont., has been coUec^ted and proceeds placed to our credit, Collection charges, 25c. (C. B.) 14tu. Sold \V. Muu-, City, 100 lbs. Grauulated Sugar @ 12c. 14tii. Paid T. W. Cumeron, Clerk, on iiccuiint of salary, $20. (C. B.) 14tu. Sold J. D. Davis, City, 10 lbs. Currants @ Oc. ; 20 lbs. Rice @ 4ic. ; 20 lbs. Pulv. Sugar @ 12c. ; 10 lbs. Java Coffee @ 40c. (J.) 14x11. Sold W. Duun, City, 10 lbs. Yoiiug Hyson Tea @ COc. ; 10 lbs. Congou Tea @ 57c.; 10 lbs. Granulated Sugar @ 12c. (J.) 14th. Cash sales to-day, $110.10. (C. B.) 15tu. Gave Perkins, Ince & Co., City, our note at 2 months, payable at Bank o£ Commerce, here, for Invoice of the lltli instant. (B. B.) 15th. Made a draft, at 80 days after sight, on W. Brown, Chatham, Ont., payable at Bank of Commerce, here, to balance his account, and sent it to him fox acceptance. (Mtmo.) 15th. Paid W. Denison, Clerk, Cash ou account of salary, $20. (C. B.) THE PRACTICAL BOOK-KEEPER. Ill 15tii. Sold W. H. Covert, City, 2 boxes James's Ball Blue, 28 lbs. atl5o. ; 1 doz. L. & P. Worcester Sauce @ $5.90. (J.) 15th. Sold D. Hoskins, City, 16 lbs. Filbert Nuts @ lOc. ; 2 bags Kioe, 226-4, 450 224-4, 8 = 442 @ 8Jc. (J.) 15tq. Cash sales to-day, $94.75. (G. B.) IGth. Sold W. Mitchell, City, 10 lbs. Val. Raisins ® 12o.; 2 lbs. Black Pepper @ 25c. ; 2 gals. Goldeu Syrup @ 75c. (J.) IGth. Sold J. K. Cameron, Parkdale, 10 lbs. Young Hyson Tea (3 60o. ; 10 lbs. Oolong Tea @ COc. ; 40 lbs. Granulated Sugar @ 12c. (J.) 10th. Received from J. D. Davis, City, Cash to apply on account, $10. (C. B.) IGth. Received of W. Dunn, City, Cash to apply on account, $10. (C. B.) 16th. Cash sales to-day, $121.40. (C. B.) Balance and rule off Cash Book, biiuK balance down and post to date. IHth. Deposiicd in Bank of Commerce, Cash $150. (G. B.) ISth. Bought of Frank Smith & Co., City, 1 half-bbl. Crown Syrup 18^ @ 75c. (.1.) 18th. •a.. 10 Bought of Christie, Brown & Co., City, 10 boxes Soda Biscuits, IS •a. 80 »a.80 each @ 8c.; 10 boxes Aberaethy Biscuits, 15 each @ lie; 10 Tea tiso Biscuits, 15 each, @ 18c. ; 10 Cream Biscuits, 12 each @ 18c. (J.) 18th. Bought of A. Harvey & Co., 24 boxes Blue Basket Raisins, @ $4.25; 5 1400 bbls. Granulated Sugar, 292-28, 208-22,274-22,283-22,283-25, 114 = 1280 8x39 @ die. ; 5 boxes Pure Starch, 2x30 189 c?, G^c. ; 30 lbs. W. Cloves @ 40o. ; 10 lbs. Nutmegs @ 50o. Paid freight in Cash, §15.25. (J. & C. B.) 18th. Sold Geo. Devine, City, 1 bbl. Granulated Sugar, 292-23 = 200 @ lOJc. ; 80 lbs. Starch @ 7c. ; 10 lbs. B. B. Raisins @ lOo. (J.) 18th. Cash sales to-day, $87.00. (C. B.) 19th. W. Brown, Chatham, Ont., returned draft made on him on the 15th iuet., fteccpted. Date of acceptance Sept. 18th. (B. B.) 119 I !l. THE PRACTICAL OOOK-K££P£R. IOth. Discounted W. BrowL 'a acceptance of the 17tb inst. at Bank of Commerce* Discomit for days. Proceeds to our credit. (G. B.) 19th. Deposited in Bank of Commerce, Cash $00. (C. B.) IOth. Sold J. D. Davis, City, 1 bbl. Granulated Sugar, 208-22 = 240 @ lOJc; 70 lbs. pure Starch @ 7o. (J.) mill. Cash saJes to-day, $74.01. (C. B.) 20x0. Accepted A. Harvey & Go's, Hamilton, draft, at SO days after sight, pay- able at Bank of Commerce, here, for purchase of the Ibith instant. (B. B.) 20tu. Deposited in Bank of Commerce, Cash §70. (C. B ) 20th. 667 Sold "W. Smith, Yorkvillc, 2 bbls. Refined Sugar, 281-22, 280-21, 43 = 524 @ lOo. (J.) 20th. Received of J. D. Davis, City, his note at 80 days, payable at Bank of Com- merce, here, to balance account to date. (B. B.) 20th. Sold J. D. Davis, City, 25 lbs. Gunpowder Tea & COc. ; 25 lbs. Java Coffee @ 40o. (J.) 20Tn. Cash sales to-day, §92.44. (C. B.) 21ST. Deposited in Bank of Commerce, Cash $75.44. (C. B.) 21ST. Bought of John Morrison, City, 25 cases Star Salmon, each 4 dozen, 100 @ §2.UU. (J.) 21ST. Sold J. K. Cameron, Parkdiile, 10 doz. Star Salmon @ §2.50 ; 40 lbs. pure Starch @ 7ic. ; a^ lbs. M. N. Tobacco @ GOc. (J.) 21ST. Sold J. Mnir, City, 10 lbs. Black Pepper @ 24c. ; 10 lbs. Eio Coffee @ 85c.; 10 lbs. Young llysou Tea (c^ GOc. (J.) 21ST. Cash sales to day, $00.25. (C. B.) 22nd. Deposited in Bank of Commerce, Cash $00. (C. B.) 22nd. Gave John Morrison, City, our note at 3 months, payable at Bank of Com- mere, here, for purchase of 2l3t instant. (B. B.) TUK PRACTICAL BOOK-KEEPEB. 118 22nd. Sold W. H. Dennis, Barrie, Ont, per his order, 10 doz. Star Salmon @ $2.50 ; 1 bbl. Kefined Sugar, 280-21 = 2r>U @ lOo. Paid cash for cartage, 26c. (J.) 22nd. Sold W. Smith, Yorkvillo, 10 lbs. Congou Tea @ G2c.; 10 lbs. Gra.ulated Sugar @ 12c. (J.) 22nd. Cash sales to-day, $85.50. (C. B.) 28bd. Sold W. Dunn, City, 3 bbls. XXX Flour @ $0.25 ; k cask English Malt Vinegar, 25 gals., @ 55o. (J.) 23kd. Deposited in Bank of Commerce, Cash $75.50. (C. B.) 2dRD. Sold W. Munro, City, 1 case of Worcester Sauce, pints, 1 doz. @ $5.90 ; 10 lbs. Japan Tea @ COc. (J.) 23rd. Cash sales to-day, §180.20. (C. B.) Balance and rule off Gash Book, bring balance down and post to date. 25th. Deposited in Bank of Commerce, Cash §100. (C. B.) 25th. ^lacle sight draft on W. H. Deuuis, Barrie, Ont., payable at Bank of Torouto, Bailie, for his purchase of 22ud inst., auil discountcil same at Bank of Commeico, here. Collection charges, 25c. Proceeds to our credit. (C. B.) 25th. Shipped R. E. Gallagher, Hamilton, Out., per G. T. R., per order of 23rd inst., 40 lbs. Starch @ T^c. ; 40 lbs. Pulverized Sugar @ 12c.; 40 lbs. Oolong Tea @ COc. ; 40 lbs. Java Coffee @ 40c. (J.) 25th. Sold W. Dunn, City, 1 bbl. XXX Flour @ $0.00 ; 1 stone Oatmeal @ 40c. (J.) 25Tn. Cash sales to-day, $72.10. (C. B.) 20Tn. Made sight draft on R E. Gallagher, Hamilton, Ont., for goods shipped bim on 25th instant. Draft payable at Bauk of Commerce, here, auJ left it there for collection. (Memo.) 20th. Deposited in Bank of Commerce, Cash §70. (C. B.) 2Gth. Shipped W, Brown, Chatham, Out., per his order, 3 boxes Benson's Com Starch, 40 lbs. 6ach= 12J @ 40c. ; 20 Ibd. Gunpowder Tea @ 70c. (J.) I l! 1 114 the piuctioal book-keeper. 20th. Cash sales to-day, $101.90. (C. B.) 27th. Bought of Frank Smith & Co., City, 8 bbls. Refined Sngar, 280-21, 290-22, HrA 285 281-22, G5 = 78G @ 9jc.; 8 half-chests Congou Tea, 79-17, 80-10, 70-17 60- 185 @ 58c. (J.) 27th. Sold D. Moore, City, 1 bbl. XXX Flour @ $0.00; 2 stone Oatmeal 40o. 27tu. Sold W. Mitchell, City, 1 bbl. Refined Sugar, 290-22 = 208 @ lOc. (J). 27th. Cash sales to-day, $81.29. (C. B.) 28ru. Dopohited in Bank of Commerce, Cash $175, (C. B.) 28rH. Sold W. Dunn, City, 1 bbl. Refined Sugar, 280-21 = 259 @ 10c. ; 1 half- chest Congou Tea, 79-17 = 02 @ 00c. (J.) 28th. Sold J. K. Cameron, Parkdale, 20 lbs. Congou Tea @ GOc. ; 30 lbs. Pulv. Sugar @ 12c. (J.) 28th. Cash sales to-day, §73.10. (C. B.) 29Tfl. Deposited in Bank of Commerce, Cash .?05. (C. B.) 29th. Gave Frank Smith & Co., City, our note at 2 mos., payable at Bank ol Commerce, here, for Invoice of 27th instant. (B. B.) 29th. Sold W. Muir, City, 10 lbs. Pulv. Sugar @ 12c. ; 2 lbs. W. Pepper @ 24c.; 10 lbs. Abernethy Biscuits @ 12c.; 10 lbs. Tea Biscuits (<$ 12c.; 10 lbs. Cream Biscuits (a, 15c. (J.) 29th. Received Cash of J. E. Cameron, Parkdale, to apply on account, $20. (C. B.) 29Tn. Received of W. Smith, Yorkville, Cash to apply on account, $25. (C. B.) 29th. Cash sales to-day, §94.10. (C. B.) 29th. Received of W. Muir, City, Cash to apply on account, $25. (C. B.) 80th. Received of W. Munro, City, note at 10 days, payable at Bank of Com- merce, here, to balance his account to date. (B. B.) TBB PRACTICAL nOOK-KREPER. 115 )22, 40o. pi- half- 80th. We are advised by Dank of Commeroo, that onr eight draft made on R. E. Gallagher, Hamilton, Oat., has been collected and proceeds placed to our credit. Collection charges, 25o. (G. B.) COth. Deposited in Bank of Commerce, Cash f 125. (C. B.) 80th. Beceived of W. Mitchell, City, his note at <0 days, payable at the Bank of Commerce, here, to balance account. (B. B.) 80th. Cash sales to-day, $110.25. (C. B.) SOxn. Paid tiie following expenses in cash : T. W. Cameron and W. Dcnison, (Clerks), in full of salary to date; one month's rent, $50; Stationery, &c., $5.10. (C.B.) Balanco Cash Book, bring balance down and post to date. Take a Trial Balance, enter it in Trial Balance Book, and proceed with the business of ue&t mouth. 'ulv. QUESTIONS FOR REVIEW. ik oi 24c.; lbs. $20. .B.) too Describe tlio mode of endorsing cheques, notes or acceptances? •"•Write out a Foreign Bill o! Exchange for *1000. at 60 days' after sight, on Wad- dell & Blown, Sheffield? •••What is a Certificate of Deposit? "' 'Write out a Certificate of Deposit for *100, issued by Bank of Toronto, to Wm. Smith's order. •»«WhatisaDueBill? •'•Write out a Duo Bill in favor of Edw. Trout, negotiable by endorsement, for 9100 in goods. •••Write out a non-negotiable Duo Bill ? ••'What is an order? •••Write out an order, negotiable by endorse- ment, for JlOO in goods, in favor of W. H. Covert. •••What is a receipt? « > "Write out a receipt in full of account. * ' 'Write out a receipt in full of all demands. • ' 'Write out a receipt for rent to date. • >« Write out a receipt to apply on note. • ■•Write out a receipt for interest due on mortgage. • > 'What is a Bill of Goods ? •' 'What is an Invoice? • I •Make out a receipted Bill of Goods for 0. Mann, buyer. F. G. Glen, seller. ' ■ 'Make out a monthly statement? •••What is meant by Partnership? * ' ' What is a partnership contract ? •'•In how many ways may a partnership be disRolved? Name them. ••■Describe Profit and Loss, and articles of agreement •••How are interest and salary adjusted be- tween partners ? •••What is j'our Journal entry when yon discount a Bill Iteceivable at Bank, receiving the proceeds in cash ? •••When posting from Cash Book, what are your entries in C. B. in above trans- action ? ••'What is your Journal entry when you discount, at Bank, a Bill Receivable bearing interest from date, receiving' proceeds in cash ? •••What will bo you entries, in above trans- action, if posted from Cash Book? •••What is the Journal entry when you dis- count a Bill lieceivable at Bank, and the proceeds are placed to your credit ? •••If above transaction were entered in Cash Book and posted thence to Ledger, what would bo your entries ? 1 KoTB.— The answers to the above questions are to be written out by the student and handed to the teacher for iuspectiou before going on ixitb the next mouth. Jom- THB PRAOTIOAL DOOK-KKl PF.R. 117 THE CASH JOURNAL. • ••For the month of October, the Day Book, Cash Book and Joitmal are combined, aud the book is called the Cash Journal. ' " ^Tiie form in similar to the ordinary Cash Book, and is used as a book of origiunl entry fur all transactions, excepting Bills Receivable and Bills Payable, ""which will bo posted from Bill Book as in September. All other entries are to bo posted diroctly from the Cash Journal in the same manner as from the Cash Book for September. '°*Whcn Cash is received, the account that produces that cash is placed on the Dr. side, or left-hand page, in the column headed " Accounts to bo credited in Ledger," and when Cash is paid, the account for which it was paid is placed on the Gr. side, or right-hand page, in the column headed " Accounts to be debited in Lodger." ••"lu transactions where no Cash is received or paid out, the account to be debited is placed on the credit or right-hand pago of the Cash Journal, in the column hcoili '' Accounts to be debited in Ledger," and the account to be credited is pliic^ ou the debit or left-hand page, in the column headed "Accounts to be credited in Ledger." '""This will increase both sides of the Cash Journal equally, but the diflerence between the Dr. and Cr. footings at any time should be the balance of Cash on hand and in Bank (if no Bank account is kept in Ledger.) sTi^ash transactions are entered only ou one side of the Cash Journal, just the same as in the ordinary Cash Book. "'•'Transactions, where no Cash is received or paid, are entered on both sides of the Cadh Journal. The first transaction in which no cash appears, if journalized, would be Merchandise Dr. to A. Harvey & Co., $270. Go. Wo take the DEbiT of above Journal entry, which is " Merchandise," and place it on the Credii side of Cash Journal, in tho columu lieaded "Accounts to bo debited in Ledger," and the Ckkdit of bame entry is "A. Harvey & Co.," wo place on the Debit side of Cash Journal, in the column headed "Accounts to be credited in Ledger." 2' 3 No "Bank account" is opened in Ledger. Keep it on the stub of Cheque Book. Tho balance of Bank from September is placed on the debit aide of Cash Journal at beginning — to close above account. 118 '1 • THE PRACTICAL BOOE-K£EP£B. CASH Da. Accounts to bo Credited in Cash Explanations. Zi. F. Sales. Sundries Oct. To Bk. of Commerce, " A. Harvey & Co., " Merchandise, " Merchandise, " Merchandise, " Merchandise, '' Perkins, Ince& Co llalance on hand .... To balance account in Ledger Bought of them as per Invoice Sold W. Dunn, City, Mei'chan- diae as per Invoice - - - Sold W. Smith, YorkvJlle, Merchandise as per Invoice Sold W. Muir, City, Merchan- dise as per Iuvoi';e - - - Cash sales to day Bought of Item as per Invoice / / Amounts forward 940 09 11588 7G 276 05 IG 30 27 14 30 50 109 15 129!]8 lC7 25iir->934 GO undrieB 940 09 1588 7G 276 G5 129 10 !)31 06 THE PRACTICAL BOOE-KEEFEB. JOURNAL. no Contra. Date. Accounts to be Debited in Leilgor. Explanations. Cb. Piir- !< F. chauea. Sundries, Oct. By Merchandise, Expenses, W. Dunn, W. Smith, W. Muir, Merchandise, BouRbt of A. Hnrvey A Co., 3 half-chests Congou Tea, 79-18, 80-17, 74-17, r,2 rn:181 (?i). ^^0., »9G 84 3 Bbls. llefined Sugar, 281-22, 852 280-21, 291-22, 65;--787 @ 9Jc., 571.81 3 Caddies M. N. Tobacco, 6(1 lbs. each, 18J@ 60c., «108 raid freiffbt on A. Harvey & Co'b Invoice. For 10 lbs. Tea @ COc., ?6.00; 10 lbs. M. N. Tobacco @ 65c., »l).50 40 lbs. lief. Sugar @ 9ic, »3.80 Sold W. Smith, Yorl. ?l 75, §8.75 5 dnz Vanilla (n> »2 75, $13.75 40 lbs. I. Sugar (((} 12c., 84.80 For 2 boxes Benson's Corn Starch, 40 lbs. each (oi. lOc, 88.00 10 lbs Tobacco @ 65c., 86.50 Bought of Perkins, Inco \' Co , Citv, 5 cases \V. Sauce (^ 85.'90, 82950 4 Bbls. (Iran. Sugar, 2'.l2-24, 280-21, 292-21, 290-22, 1154 91:-inG3ej 9gc., 899.C6 v' 276 6 15:00 16 30 ! I ) I 27 30 I 14 50 ■/ I 129 16 I Frank Smith & Co Cheque in full of account. 13 3» 4"6'81 8698 n m . 1 w ^ 1 120 THE PRACTICAI. B00K-K3EPEU. BACK OF STUB. STUB. When '^ .nk Account Back of Stu Balance Oct. 2 Deposit - IS KEPT ON B. 11588.76 500.00 No. 8. Date, October 8rd, 1882. To F. Smith & Co. " 3 Deposit - 12088.76 - 100.00 For in full of account. " " Cheque No. 3 12188.76 18.88 " 4 Deposit - 12171.88 150.00 Amount SlSyVs- Forward 12;-i24.88 Amount forward Oct. 4 Deposit 1712H24.88 \ 100.00 j No. 4. * Date, October 9th, 1882. To James Lumbers. '• G Deposit - 12421.88 lOO.UO «' 9 " 12524.88 75.00 For in full of account *' 10 Cheque No. 4 1250!) 88 28.0IJ 1 1 Amount $28.00. Forward - 12571.88 ' Amount forward Oct. 10 Cheque No. 5 $12571.88 210 00 No. 6. Date, October 10th, 1882. To W. D. Grand. " " Deposit - 12Hni.88 i 110.00 " " Cheque No. 6 12171.8S ;-)5i).oo For Horse, Wagon and Ilarnoss. Forward - 11^121.88 Amount, $210.00. Amount forward Oct. 11 Deposit - • §12121 88 115.00 No. 6. . ' Date, October 10th, 1882. To D. M. Wilson. For Private use. Amount, $350.00. THE PBACTIOAL BOOE-KEEPEB. 121 CHEQUE BOOK. No. 3. Toronto, October 3rd, 1882. To the Cashier CANADIAN BANK OF COMMERCE. Pay to Frank Smith & Co or Order, Thirteen jVs Dollars. In full of account to date. ^l^/oV * Wilson. StuiienVs Name. No. 4. Toronto, October 9th, 1882. To the Cashier CANADIAN BANK OF COMMERCE. Pay to James Lujibers or Order Tweuty-Eight jo^TDoUars. In full of account. $28.00. & Wilson. Stuileat's Name. No. 5. Toronto, October 10th, 1882. To the Cashier CANADIAN BANK OF COMMERCE. Pay to W. D. Grand or Order, Two Huudied and Ten x^jDollars. $210.00. - __it Wilson. Stadent's Name. No. 6. , Toronto, October 10th, 1882. To the Cashier CANADIAN BANK OF COMMERCE. Pay to Cash or Bearer, Three Huudied and Fifty yojDoUars. $350.00. . & Wilson. student's Name. ' "41 01 "'% 122 THE PRACTICAL BOOK-KEEPER. FORMS OF DEPOSIT SLIPS. CANADIAN BANK OF COMMERCE. TonoNTo, October 15tb, 1882. Credit, Studeut's name. & WILSON. Dkposited by J. K. CAMERON. Another Form. CANADIAN BANK OF COMMERCE. . •. Toronto, October 19th, 1882. Credit^ Stuilout'8 name. _& WILSON. Deposited dy J. K. CAMERON. 4 X 9 X G X 2 X 1 X 1 X NO'n: S. ClIKC^lT is. SPKCIK. 1 TOTAL! <. 1 =! 4 27 18 11 50 J 2 r= i«; " 20 =, 30 40 1 1 G9 82 150 GO 50 = 50 0) = 100 1 50 50 $242 90 IGl Notes • 242 on Cheques • 90 50 Specie Total - . 161 50 00 $500 THE PRACTICAL BOOE-KEEPEB. 123 ToBoiTTO, October 2na, 1882. Bought of A. Harvey & Co., Hamiltoo, 3 half-cbests Congou Tea, 79-18, 233 80-17, 74-17, 52 = 181 (§ 53|c.; 3 bbls. Kefined Sugar, 281-22, 280-21, 852 291-22, 65 = 787 @ 9|c.: 3 caddies Myrtle Navy Tobacco, 60 lbs. net each = 180 @ 60c. Paid freight in Cash, $15. (C. J.) 2.VD. Deposited in Bank of Commerce, Cash $500. 2XD. Sold W. Dunn, City, 10 lbs. M. N. Tobacco @ 65c.; 10 lbs. Congou Tea @ 60c.; 40 lbs. Kefined Sugar (^ 9ic. (C. J.) 2XD. Sold W. Smith, Yorkville. 5 doz. Ess. Lemon @ $1.75; 5 doz. Ess. Vanilla @ §2. 75 ; 40 lbs. Icing Sugar ,..' 12c. (C. J.) 2nd. Sold W. Muir, City, 2 boxes Benson's Corn Starch, 40 lbs. each = 80 @ 65c. i 10 lbs. M. N. Tobacco @ 65c. (C. J.i 2.\D. Cash sales to-day, §109.15. (C. J.) 3ed. Bought of Perkins, Ince & Co., City, 5 cases W. Sauce, pints, @ $.j.90: 1154 4 bbls. Granulated Sugar, 292-24, 2S0-21, 292-24, 290-22, 91 = 10^3 y: 9ec. (C. J.) 3bd. Deposited in Bank of Commerce, Cash $103. (C. J.) 3£D. Gave F. Smith & Co., City, Cheque on Bank of Commerce in full cf account. (C. J.) 3ed. Received of J. D. Davis, his note at 10 days to balance account. (B. B.) 3ed. Made a sight draft on W. Brown, Chatham, Ont., to balauce h'u account, and discounted same at Bank of Commerce. Collection charges, 25c. P/oceeda to our credit at Bank. (C. J.) 3ed. Sold J. D. Davis, City, 25 lbs. Oolong Tea @ GOc. ; 25 lbs. Granulated Sugar @ 12c.; 25 lbs. Mocha Coffee yj 35c. (C. J.) 3£D. Accepted A. Harvey & Co's draft at 30 days aftor sight, payable at Bank of Commerce, here, to settle then* account. (B. B.) 3ed. Sold D. Moore, City, 1 doz. Walnut Pickles, C. & B,, @ $3.00; 1 box Maccaroni, 25 @ 20c.; 10 lbs. Tal. Raisins @ 12c.; 5 lbs. Y. H. Tea @ 70c.; 10 lbs. Granulated Sugar @ lie; 5 lbs. Java Coffee @ 4Uc. (U. J.) 124 THE VRACTICAL BOOK-KEEPEB. Il 8bd. Cash sales to-day, §117.18. (C. J.) 4th. Eeceived of J. K. Cameron, Parkdale, hia note at 20 days, in f all of acconnt to date. (B. B.) 4th. Deposited in Bank of Commerce, Cash $150. 4th. Gave Christie, Brown & Co., City, our note at one month, payable at Bank of Commerce, to balance their account. (B. B.) 4.T11. Eeceived of W. Smith, Yorkville, Cash in full of his account to Oct 1st. (C. J.) 4th. Sola W. Smith, Yorkville, 10 lbs. Black Pepper @ 24c.; 5 doz. W. S. Salmon (?$ !i?2.50; 1 bbl. Relined Sugar, 281-22 =.159 @ 9^0. (C. J.) 4th. Sold W. n. Covert, City, 10 lbs. M. N. Tobacco @ 65c. ; 10 lbs. Prunes @ lOc; 10 lbs. Icing Sugar @ 12c. (C. J.) 4th. Sold W. Munro, City, 10 lbs. E. A. Tobacco @ 55c.; 15 lbs. Eice @ 5o.; 1 doz. Capers, C. & B., G oz. @ $1.80. (C. J.) 4Tn. Eeceived of \V. H. Covert, City, Cash to apply on account, §10. (0. J.) 4th, Eeceived of D. Hoskins, City, Cash to apply on account, $15. (C. J.) 4tu. Sold Edw. Tmnt, City, 20 lbs. Oolong Tea @ 75c.; 2 bbls. XXX Flour @ §5.50; 5 Ibb. Soda Discuit.s @ 10c. ; 5 lbs. Aboruethy Biscuits @ 12^c. (C. J.) 4tu. Sold J. K. Camerou, Parkdale, 2 bbls. Dairy Salt @ $3.00; 1 box C. Pin» © 80c.; 10 lbs. Prunes @ 10c. (C. J.) 4Tn. Cash salc3 to-day, $140.10. (C. J.) 5th. L' . ,•■ D. Davis, City, 1 bbl. Granulated Sugar, 292-24 = 208 @ 12c.; IQ .i;^: .; --• I'ea @ 60c. (U. J.) 5th. Deposited in Bank of Commerce, Cash $110. 5tu. Bought of Wilson & Munro, Loudon, Cnt., 1 half-bbl. Amber Syrup, 11> 572 gals. © 80c.; 4 sacks Sago, 143-4, 146-8, 14b 3, 140-3, 18 = 559, @ 5ic. Paid freight in cash, $3. (C. J.) THE PRACTICAL BOOK-KEEPEH. 125 Bin. Sold James Heclloy, Brampton, Ont., 10 gals. Amber Syrup @ $1.00; 10 lbs. Sago @ 8o.; 10 lbs. Congou Tea @ G5c.; 10 lbs. Java Coffee ((C, -lOc. (C.J.) 5th. Keceived from James Hedley, Brampton, Ont., Cash to apply on account, $10. , (C. J.) 5th. Sold W. Mitchell, City, 4i lbs. W. Pepper @ 23c. ; 10 lbs. Granulated Sugar @ ll^c; 3 lbs. Oolong Tea @ 70c.; 5 lbs. Coffee @ 40c. (C. J.) Sth. Sold W. Smith, Yorkville, 5 gals. Amber Syrup @. $1.10; 10 lbs. Prime Butter @ 2-lc. ; 10 lbs. Lard @ 15c.; 5 lbs. Prunes (w, 10c. (C. J.) :'ma Cash sales to-day, $97. 2J. (C. J.) 6th. Deposited in Bank of Commerce, Cp " $100. (Memo.) 6th. Sold W. H. Covert, City, 10 lbs. Prunes @ 10c. ; 10 lbs. Java Coffee @ 40c.; 8 lbs. Tea Biscuits @ 15c.; 4 lbs. Cream Biscuits @ 20c. (C. J.) 6tu. Received of Geo. Devine, City, his note at 20 days to apply on account. (B. B.) 6tu. Sold Geo. Bull, Weston, Out., 1 bbl. XX Flour @ $5.50; 2 bbls. Dairy Salt @ $3.00. (C. J.) 6th. Sold W. Muir, City, 1 bbl. Refined Sugar, 291-22 ==2G9 @ 10c. (C. J.) Gtu. Cash sales to-day, $70. (C. J.) 7'fu. Sold James Hedley, Brampton, Ont., 5 lbs. Young Hyson Tea @ 70c. ; 10 lbs. Java Coffee @ 40c.; 20 lbs. Refined Sugar @ 10. (C. J.) 7tu. Accepted Wilson & Munro's Draft on us at GO days after sight, payable at BanK of Commerce, here, to balance account. (B. B.) 7tu. Bought of James Lumbers, City, 5 cases C. & B. Mixed Pickles @ $2.80; 6 cases C. & B. Chow Chow @ §2.80. (C. J.) 7th. Sold W. Mitchell, City, 8 lbs. Black Pepper @ 24c. ; 10 lbs. Soda Bitcuits @ 10c. ; 10 lbs. Prunes @ 10c. (C. J.) 7Tn. Cash sales to-day, $94.25. (C. J.) Rule off Cash Journal and bring balance down and post to date. 126 TUK PBACXICAli UUOK-KKEPEli. Otii. Bought of W. II. Knowltou & Co., City, 10 Lbls. XXX Flour @ §5.10; 5 bbls. Oatiueul & §5.00, (C. J.) Oxn. Deposited in Bank of Commerce, Cash §75. Orn. Gave James Lumbers our cheque on Bank of Commerce to balance account. (0. J.) 9th. Made a sight draft on James Ilcdley, Brampton, to balance account, and left it at Bank of Commorco for collectioii. (Memo.) 9ni. Sold Geo. Devine, City, 2 bbls. XXX Flour Q §0.00; 2 stone Oatmeal @ 40c.; 5 lbs. Gunpowder Tea @ 70c. (C. J.) 9rii. Shipped R. E. Gallagher, Hamilton, Out., per order of the Gth inst., 1 bbl. Refined Sugar, ria0-21 = 259 @ lOc; 1 half-chest Oolong Tea, 59-15 = 44 (^ 5Cc. (C. J.) 9tu. Sold W. Munro, City, 10 gals. Amber Syrup at $1.10; 10 lbs. Cream Biscuits tiJ 20c.; 10 lbs. Tea Biscuits @ 15c.; 10 lbs. Icing Sugar @ 12c, (C.J.) Uth. Sold W. Dunn, City, 10 lbs. Benson's Corn Starch @ 10c. ; ^ doz. C. &B. Mixed Pickles @ §3.50; 5 lbs. Prunes @ 10c. ; 10 lbs, Valencia Raisins @ 15c. (C. J.) 9xn. Cash sales to-day §102.15. (C. J.) lOra, Bought at auction, 1 horse, 1 sot Harness and 1 Delivery Wagon, for which we gave our cheque, §210. (C. J.) IOtii. .-^ Deposited in Bank of Commerce, Cash §110. IOtii. Bouglit of Frank Smith & Co.. City, 6 half-chests Congou Tea, each C2 net = 310 @ 51Jc.; 6 boxes Valencia Raisins, 28 = 110 lO^c; 2 bbls. Extra 3S2 Icing Sugar, 192-20, 190-21, 41 = 3-11® lie. (C.J.) 10th, Sold Edw. Trout, City, 12 lbs. Congou Tea @ GOc; i doz. C. & B. Chow Chow @ §3.50; i doz. C. & B. Mixed Pickles & §3.50. (C. J.) IOtu. Sight draft made on W. Brown, Chatham, Ont., the 3rd inst., has been protested for non-payment. Protest fees, $1.25. Face of draft and charges charged to our account by Bank, (C. J.) m. THE PRACTICAL BOOK-KEEPKR. 127 lOW sen ;es 10th. Sold J. K. Cameron, Parkaale, Ont., i bbls. Flour @ $G.OO; 10 lbs. Valencia Raisius @ 15c. ; 10 lbs. Extra Icing Sugar @ 12^0. ; 10 lbs. Congou Tea @ 70c. ; 5 Iba. Cream Biscuit @ 20c. ; 5 lbs. Pruues ((jj, 10c. (C. J.) 10th. Solil Geo. Bull, Weston, 10 lbs. Granulated Sugar @ 12c.; 10 lbs. Kcfined Sugar @ lOc. ; 5 lbs. Abornethy Biscuit @ 15c. ; 5 gals. Amber Syrup @ $1.10; 5^ lbs. Young llyson Tea @ 75c. ; 8 J lbs. Java Coffee @ 40c. (C. J.) 10th. D. M. Wilson withdraws from business Cash, per cheque, $850. (0. J.) lOrn. Edw. Trout, City, has called to settle his account. lie has paid Cash $10, and gave his note @ 10 days for balance. (C. J. & B. B.) IOtu. Sold W. Smith, Yorkville, Ont., J Cask English Malt Vinegar, 25 gals. @ 50c.; 1 basket " Piper Heidsieck " Champagne @ $30; i doz. Starr Salmon @ $2.50. (C. J.) lOru. Cash sales to-day, $100. (0. J.) 11t». Sold W. Muir, City, 10 lbs. M. N. Tobacco @ 65c. ; 10 lbs. R. A. Tobacco @ 55c.; 20 lbs. Benson's Corn Starch @ lOo. ; 10 lbs. Almoud Nuts @ 20o. (C.J.) 11th. Received from J. D. Davis, City, his Note @ 20 days, payable at Bank of Commerce, here, to balance account to date. (D. B.) llxn. Received of J. K. Cameron, Parkuale, Cash to apply on account, $20, (0. J.) 11th. Received of G. Bull, Weston, Casli to apply on account, $20. (C. J.) 11th. Returned 8 Boxes Valencia Raisius, purcliased of Frank Smith & Co., City, ou 10th iust. (C.J.) 11th. Deposited in Bank of Commerce, Cash §115. llru. Gave Frank Smith & Co., City, our cheque on Bank of Commerce for balance of account, less 3 % discount. (C. J.) 11th. Sold Edw. Trout, City, 2 bbls. Superior Extra Flour @ $0.25 ; I doz. Cook's Friend @ $3.00 ; 2 lbs. W. Cloves 50c. ; 2 Iba Nutmegs @ COc. ; 3 lbs. Black Pepper @ 25c. (C. J.) IIth. Cash sales to-day, $97.50. (0. J.) 128 THE PBACTICAL BOOK-KEEPER. 12th. Made a eight draft on R. E. Gallagher, Ilamilton, Ont, to haknce account, and discounted Hamo at Bank of Commerce, hero ; discount, 25c. Prooeods to our Credit. (C. J.) 12Tn. Sold Geo. Devino, City, l.l lbs. Royal Arms Tobacco @ 56c., 15 lbs. Myitlo Navy Tobacco @ 65c.; 1 half-chest Congou Tea, 59-15 = 41 (g 70c. (C. J) 12Ta. Deposited in Bank of Cummcrcc, Cash $100. 12Tn,, Student has withdrawn from business Cash for private use, ^•lOO. (C. J.) 12tu. Sold W. II. Covert, City, 5 boxes D. Ilerriugs @ 30c. ; 15 lb . CofTee @ 40o.; 15 lbs. Young llyaon Tea® 70c.; 1 box Cook's Friend @ $2.75. (C. J.) 12tu. Sold D. Uoskius, City, 1 bbl. XXX Flour @ 6.00 ; 1 stone Oatmeal @ 40o. ; 1 stone Corn Meal (g; lOc. (C. J.) 12iii. Sold W. Munro, City, 1 case P. U. Champagne @ $30 ; 2 doz. Essence Lemon @ §2.00 ; 5 lbs. Myrtle Navy Tobacco @ G5o. (C. J.) 12tu. Cash sales to-day, §119.10. (C.J.) 13th. Deposited in Bank of Commerce, Cash §100. 18th. Bought of Smith & Keighley, City, 10 bags Java Coffee, 105-7, 108-G, 109- 10G9 5, 107-0, 105-G, 108G, 104-5, lOG-G, 107-6, 110-G, 59 = 1010 @ 25c. ; 5 boxes Benson Corn Starch, -10 lbs. each = 200 @ 8^c.; 8 bbls. Refined Sugar, 281-21, 855 290-22, 281-21, 01 = 791 @ 9c. ; 8 quarter casks English Malt Vinegar, 25 gals, each = 75 @ 50c. ; 10 baskets " Piper Hoidsieck " Champagne @ §2G. (0 J.) 13tu. Sold W. Mitchell, City, 10 lbs. Corn Starch @ 10c. ; 10 lbs. Prunes @ lOoj 1 bbl. XXX Flour @ §0.50. (C. J.) ISth. Sold W. Smith, Yorkville, 5 gals. English Malt Vinegar @ 70c. ; 1 case P. n. Champagne @ *30.00. (C. J.) ISth. Cash sales to-day, $9-1.70. (C. J.) Utts. W. Munro, City, has renewed his note due 13th inst. Received in pay- ment, new note to run three months with interest added. (See Examples 29 and 30, pages 93 and 91.) (C. J. & B. B.) THE PRACTICATi BOOK-KEEPER. 180 Mth. Sola W. Dunn, City, ^doz. C. k B, Mixed ricklosf^^ $3.50; 5 lbs. Maccaroni @ 20c.; 5 lbs. Tapioca («; 20c.; 5 lbs. Corn Starch @ 10c. j 8i lbs. Valencia Kaisins @ l.^c. ; 10 lbs. Gnuiiilatcd 8iigar ©He; 5 lbs. Congou Tea @ 70c.; 6 lbs. Java CoiTeo @ 4()c, (C. J.) 1 Itii. Eoceived of W. Smith, YorkviUo, Cash to apply on account, $25. (C. J.) 14T1I. Sold W. Umr, City, 10 gals. Amber Syrup® $1.10; 10 gals. English Malt Vinegar @ COc. (C.J.) Htii. Cash Bales to-day, $109.80. (C. J.) Eulo off Cash Journal, bring balance down and post to dato. IGtu. Bought of A. Harvey & Co., Hamilton, Oat., 10 boxes Jamos' Ball Blue, 14 lbs. each, @ 15c.; 2 kegs Sal Soda, 880 lbs. each, @ Igc; 100 lbs. Carbonate Soda @ 8c. Paid freight in Cash, $8.50. (C. J.) IGth. Sold Edw. Trout, City, 20 lbs. Ball Blue @ 20c. ; 10 lbs. Sal Soda @ -Ic. ; 8 lbs. Oolong Tea @ 70c.; 20 lbs. Granulated Sugar @ 12c.; 10 lbs. Garb. Soda @ 5c. (C. J.) IGtii. Sold J. D. Davis, City, 5 gals. Malt Vinegar @ 60c. ; 1 bbl. XXX Flour S $6.60; 2 lbs. Black Pepper @ 25c.; 1 doz. Starr Salmon @ $2.50. (C. J.) IGth. Received of W. Muir, Cash to apply on account, $15. (C. J.) IGth. Cash sales to-day, $130.42. (C. J.) 17tu. Bought of J. & A. Clark, City, 10 bbls. XXX Flour @ $6 ; 5 tubs Prime 820 Butter, 54-9, 48-10, 50-11, 47-9, GO- 11, Gl-8, 58 = 262 @ 24c. (C. J.) 17th. Discounted at Bank of Commerce, W. Munro's note, dated llth inst., J. D. Davis' note, dated llth inst., Edw. Trout's note, dated 10th inst. Discount Proceeds to our credit at Bank. (C. J.) 17tu. Sold G. Bull, Weston, Ont., 2 bbls. Flour @ $6.50; 8 stouo Oatmeal (^ 40c. ; 10 lbs. Gunpowder Tea @ 80c. (C. J.) 17tii. Compromised with James Hedley, Brampton, and accepted 75c. in the dollar in payment of his account. Received Cash. (C. J.) 18th. Cash sales to-day, $99.75. (C. J.) 180 THE PRAOTIOAL BOOK-KEEPER. ISth. R. E. Oallaghor, Hamilton, Ont., has ronowoj liia acoeptauoo due 16th inst. Retired same per clieqnc. Received in part payment, Cash $20. Now Note to run three months, with interest added, for balance. (0. J. & B. D., see Examples 20, 21, 22, pages 1)0 and 91.) 18t«. W. Mitchell, City, has paid his note due ISth inst. Received Cash. (C. J.) 18ru. Returned Perkins, luce & Co., City, 5 cases W. Sauce purchased on the 8rd instant. (0. J.) 18tu. Gave Perkins, Ince & Co., City, our cheque on Bank of Commerce for balance of account, less 8 % discount. (C. J.) 18tu. Cash sales to-day, $100.25. (C. J.) U)rn. Deposited in Bank of Commerce, Cash $100. lt>TU. Cash sales to-day, $11 5. CO. (C.J.) 20x11. Sold W. H. Covert, City, 2 gals. Malt Vinegar @ 60c.; 20 lbs. Prime Butter @ 27c. ; 2 lbs. Black Pepper @ 25c. (C. J.) 20Tn. Sold W. J. Wallace, Mimico, 2 bbls. XXX Flour @ G.50; 10 lbs. Prime Batter @ 27c.; i lbs. Conyou Tea @ GOc. (C. J.) 20tu. ' Cash sales to day, !?120.10. (C.J.) 21ST. - J. D. Davis has paid his note duo the IGth inst.. ic voived Cash. (C. J.) 2 1st. Gave Smith & Keighley, City, our note @ ',.' moiths for Invoice of the 13th inst. (B. B.) 21ST. Sold J. K. Cameron, I'arkJalo, Out., 2.j lbs. Refined Sugar @, 10c. ; 5 lbs. Congou Tea @ GOc. ; 5 lbs. Java Coli'oe @ lOo. ; 2 gala. Malt Vinegar (^ GOc. (C. J.) 21ST. Cash sales to-day, .? 112.75. (C.J.) Rule off Cash Journal, bilug balance down and post to date. 2.3KD. Deposited in Bank of Commerce, Cash $125.00. 23rd. Gave J. & A. Clark, City, our note at 2 mos., payable at Bank of Commerce, to balance account. (B. B.) THE PRAOTIOAIi BOOK-KEEPER. 181 23ro. Sold W. Dnnn, City, 5 lbs. Corn Starch (!fi lOo. ; 1 stone Oatmpal (7? 40o.; 1 bbl. XXX Flour @ $0.50; 4J lbs. Young Uy»ou Tea (a> 7Uo. ^C. J.) 2}]RU. Cash sales to-day, §181.120. (C. J.) 24x11. Deposited in Bank of Commerce, Cash $1215. "^ 24th. Received of J. D. Davi-s, Cash for his note due 23rd inst. (0. J.) 24 Tu. Sold D. Iloskins, City, 10 lbs. M. N. Tobacco G5c. ; lU lbs. B. A. Tobacco @ uuc; 10 lbs. Granulated Sugar (3 12c. (G. J.) 24tu. Cash sales to-day, $180.10. (C. J.) 25th. Accepted A. Harvey & Go's draft at GO days after sight, payable at Bank of Commerce, here, for Iiivoico of IGth inst. (B. B.) 25tii. Gave W. H. Knowlton & Co., City, our cheque, less 8 % discount, to balance account. (G. J.) 25th. Bought of W. U. Knowlton & Co., Gity, 10 bbls. XXX. Flour @ $0.25. (C. J.) 2i»TH. Bought of Wilson & Munro, London, 5 half-chests Young Hyson Tea, 875 79-15, 80-14, 72-15, 71-14, 73-15, 73 = 802 (3 57c. Paid freight in Cash, $5.50. (G. J.) 25Tn, Cash sales to-day $101.50. (C.J.) 2Gtu. Sold W. Mitchell, Gity, 10 lbs. Granulated Sugar 12c. ; 5 lbs. Gunpowder Tea @ 70o. ; 5 lbs. Rio Coffoe Qjl 35c. ; 5 lbs. Soda Biscuitd (i^ 10c. ; 5 lb3. Aberuethy Biscuits @ 12Jc. (G. J.) 20tu. Sold D. Moore, City, 1 half-chesfc Young Hyson Tea, 7315 = 53 (3 70c. ; 25 lbs. Granulated Sugar @ 12c.; 5 lbs. Java Collee (3 ■10c. (C. J.) 2Gtu. Deposited in Bank of Commerce, Cash $75. 2Gth. Cash sales to-day, $149.20. (C. J.) 27Tn. Accepted Wilson & Munro's draft at 30 days after sight for Invoice of 25 th insiant. (B. B.) 182 THE PBACTICAIi BOOK-KEEPEB. t ! ii '' 27th. J. IL Cameron, Parkdale, has renewed his note due this day. Received in part payment, Cash $20. A new note @ 3 months, with interest added, for balance. See Examples 16, 17, 18, pages 89 and 90. (C. J. &, B. B.) 27'rH. Received of D. Moore, City, Cash to apply ou account, $80. (C. J.) 27th. Cash sales to-day, $125.00. (C. J.) 28rn. Deposited in Bank of Commerce, Cash $180. 28th. Sold W. Muir, City, 50 lbs. Refined Sugar @ 10c. ; 10 lbs. Y. II. Tea @ 70c.; J doz. C & B. Chow Chow @ $8.50. (C. J.) 28th. Sold W. Smith, Yorkville, 2 bbls. XXX Flour @ $7.00; 2 stones Oatmeal @ 40o. (C. J.) 28th. SoldEdw. Trout, City, 2 bbls. XXX Flour @ $7.00; 10 lbs. Granulated Sugar @ 12c.; 10 lbs. Oolong Tea @ CO. (C. J.) 28Tn. Cash sales to-day, $16-4.20. (C. J.) Rule off Cash Journal and bring balance down and post to date. 80tu. Deposited in Bank of Commerce, Cash $150. 80th. Geo. Devine has renewed his note due to-day. Received in part payment. Cash $40. A new note at 2 monais, with interest added, for balance. See Examples 16, 17 and 18, pages 89 and 90. (C. J. & B. B.) 80th. Sold W. MitpheU, City, 2 bbls. XXX Flour @ $7.00 ; 80 lbs. Butter @ 27c. 80th. Discounted at Bank of Commerce the foLowing notes : R. E. Gallagher's, due January 21st, I8d3; J. K. Cameron's, due January 80th, 1888; Geo. Devines', due January 2nd, 1888. Discount, . Proceeds to our credit at Bank. (C. J.) 80th. Sold W. Dunn, City, 40 lbs. Prime Butter @ 28c. ; 5 lbs. Young Hyson Tea @ 70c.; 25 lbs. Reliued Sugar @ 10c. ; 5 lbs. Java Coffee @ 40c.; 20 lbs. Granulated Sugar @ 12c. (C. J.) 80tu. Sold Goo. Bull, Weston, 10 lbs. Tea Biscuits (7?), 15c.; 10 Iba. Valencia Raisins @ 15c.; 14 lbs. Refined Sugar (cjj 10c. ; 2 stones Oatmeal @ 40o. (0. J.) THE PRACTICAL BOOK-KEliPER. 183 80th. • I.93_ Bought of Christie, Brown & Co., City, 5 boxes Tea Biscuits, 15 lbs. • 1.3S ' each = 75 @ 12c.; 5 boxes Soda Biscuits, 10 lbs. each = 50 @ 8c.; 5 boxes Aberuethy Biscuits, 15 lbs. •2ach = 75 @ 120. Charge them with 20 boxes returned. (C. J.) 80-.U. Gave W. II. Knowlton & Co., City, our chetjue, less 8 %, in full of account. BOtu. Cash sales to-day, $107,10. 8 1st. Deposited in Bauk of Commerce, Cash §100. 31ST. Eeceived Gash of Edw. Trout, City, to balance account to date. (0. J.) 3 1st. Received of W. Muir, City, Cash to balance account to date. (0. J.) 81 ST. Gave our cheque on Bank of Commerce to Christie, Brown & Co., City, less 8 %, to balance account to date. (C. J.) 8Ut. Sold J. K. Cameron, Parkdale, 1 doz. Starr Salmon @ |!2.50; 10 lbs. Corn Starch @ 10c. ; 20 lbs. Granulated Sugar @ 12c.; 10 lbs. Java Coffee @ 40c.; 2 lbs. Black Pepper @ 25c.; 1 gal. Malt Vinegar @ GOc; 4 lbs. Congou Tea @ GOc. ; 5 Ib.^s. 3oda Biscuits @ 10c. j 5 lbs. Abernethy Biscuits @ 12ic.; 5 lbs. Tea Biscuits @ 15c. (C. J.) 31bT. ' Eeceived of J. K. Cameron, Parkdale, Cash to apply on account, $25.00. (C. J.) 81ST. D. M. Wilson has withdrawn from the business Cash, $500. {C. J.) 8 1st. Student has withdrawn from the business Cash for private use, $500. (C.J.) 8 1st. Gave our cheque to T. \V. Cameron and W. Denisou, Clerks, in full of salary to date. (C. J.) 8 1st. Paid the following expenses per cheque : one month's rent, §50 ; 10 tons Coal §0; Po.stago, Stationery, ka,, §5.10; Advertising bill in GLbe and Mail, §25. (C. J.) iNVENTOniES. Merchandise, amount on hand, $025.79; OfTice Furniture, valued at §225; •^Expense, §200; Net gain, §1030.00. Note. — As we intend admitting a new partner at the beginning of Novem- ber, and changing the business from Betail to Wholesale, it is necessary to close accounts exhibiting Loss and Gain, and credit each partner for his shaio of Gain. m ;■ •We debited Ezpeuse i'ur UjtaB, Haruoua, Wimou und Cuul, wUicU we ntUl buve uu hand 134 THE PRACTIOAL BOOK-KEEPER. QUESTIONS FOR REVIEW. II ••5 'What is the Journal entry when you dis- count a Bill Iteceivable bearing interest from date, at Bank, and have the proceeds placed to your credit ? ■••♦If the above transaction were entered in Cash Book, and posted thence to Ledger, what would bo your entries ? ■••'What is your Journal entry when yon renew a Bill Payable, paying one-half Cash and giving a nevrnote, with interest adiled, for balance ? ■•'♦What is the Journal entry in above trans- action, wlicn the Ca.sh item is posted from Cash Book ? ••*How does the Cash item in above trans- action appear in Cash Book ? •••What is the Journal entry in above trans- action, when the Cash is posted from Casli Book and the Bills Payable from Bill Book? •*»What is thb Journal entry when a Bill Eet'civablo is renewed, receiving one-half Cash and a now note, with interest, for balance ? ■•••What is the Journal entry when the Cash in above transaction is posted from Cash Book ? •♦"How does the Cash item in above transac- tion appear in Cash Book ? »*'W)iiit is the Journal entry in above trans- action when the Cash is posted from Cash Book, and the new note from the Bill Book? •**What is your Journal entry when you retire a Bill Bcccivable per cheque, and have it renewed in part. •••Wliat is tlic .lournal entry in above trans- action if you keep no Bank account in Ledger, or if you retire the note by pay- ing' Cash ? •••What IS your Journal entry in above transaction, if the Cash item were posted from Cash Book? »«''How does the Cash item in above transac- tion appear in Cash Book ? ••'What is your Journal entry in above transaction when the Cash is posted from Cash Book and new note from Bill Book ? '♦'What is your Journal entry when you renew a Bill Payable for full amount, all entries being posted from the Journal ? •••What is your Journal entry in above transaction when the Cash item is posted from the Cash Book ? ••"What is your Journal entry when you renew a Bill Receivable for full amount, all entries being posted from Journal ? ••'What is your Journal entry in above transaction, when the Cash item is posted from Cash Book? ••« What is your Journal entries on retiring a Bill Bee ivable for renewal in full, all entries being posted from Journal? •••VVl-at is your Journal entry in above transaction wlien the Cash item is posted from Cash Book ? «»*\Yliat is your Journal entry in above transaction when the Cash is posted from Cash Book, and the new note from the Bill Book? •••How does tlie Cash item in above transac- tion appear in Cash Book ? •'•Describe the use, or for what purpose, the Cash Book is kept ? ••'Upon which side of Cash Book do you enter receipts ? '•'Upon which side do you ent'r payments? •••Wliich silo of Casli Book should never be the larger V NoTB.— Tho ans-wors to tlio above questions are to bo written out by Uio student and handed to ■tbo teiwuor fcr iu.siioi;tiuu bufore tjuiu;; ou «il.ii tliu uoxt muutu. WHOLESALE GROCERY BUSINESS. KEEPING INVOICE BOOK, SALES BOOK, CASH BOOK. BILL BOOK AND JOURNAL, ILLUSTRATING THE METHOD OF POSTING DIRECTLY FROM THESE BOOKS TO xHE LEDGER. 186 THE PRACTICAL BOOK-KEEPER. 1.: SALES BOOK. November 2nd, 1882. UABKS. A.L. L.F. A.L. S. A. J. D. Davis, City. 8 half-chests Conpon Tea, 7i-10, 7'J-ll, 76-12, 229 -80 = 193, @ GOc. 4 bbls. Keliuecl Sugar, 281-21, 282-22, 290-21, 292-24, 1145-88 = 1057 - @ 93c. 8 boxes "Western Leaf" Tobacco, 110-9, 114 10, 115-10, 839-29 = 310, .... @ 45c. Note at 8 months. : 4 W. H. Covert, City. 4 bags Rice, 226-4, 224-4, 220 4, 221-4, 891-16 = 875, @ 4Jc. 8 b^s.^^^Eye Whiskey, 41. 0^ 42.06,40.09 = 123.22 @ |1.85 20 boxes Val. Raisins, 28 lbs. each @ 10c. 4 bbls. Refined Sugar, 286-21, 291-21, 282-22, 284 22,1143-86 = 1057, - @ 10c. 10 caddies "R. A," Tobacco, 18i lbs. each @ 60o. Note at 2 mouths. 6 Edw. Trout, City. 4 half-chests Congou Tea, 74-15, 79-10, 79-14, 71-12, 803-51 = 252 @ 60c. 4 half-chests Oolong Tea, 5914, 60-12, 02-10, 58-11, 239-47 = 192, @ 62c. 4 boxes "W. L." Tobacco, 111-11, 110-10, 112-12, 112-10,445-43 = 402,. - @ 45c. 4 bbls. Refined Sugar, 28r.-22, 287-22, 284-21, 282-22,1138—87 = 1051, - @ 10c. 10 boxes Benson's Corn Starch, 40 lbs. each, @ 8ic. 4 boxes Cook's Friend, 4 doz. each @ $2.75 2 mouths. Amount fonvard - - 115 103 189 89 173 66 105 92 80 05 50 151 38 85 00 70 50 20 119 04 180 90 105 33 44 10 00 00 85835 467 43 633 24 1459 02 n] TBS FBACnCU. BOOE-KEEPEK. DTVOICE BOOK. KOVKHBEB 1st, 18S2. 187 HABKS. J35 43 L.F. C.B Merchandise as per Inventory Canada Sugar Refining Co., - Montreal. 20 bbls. Refined Sugar, 281-21, 2-2-22, 202-21, 290-21, 2SG-21, 291-21, 2H2 22, 2H4-22, 285-22, 2S7 22, 2>4-21, 282-22, 2'J0-22, 2SG-21, 272-20, 281-21, 2&221, 274-21, 281-21, 282-22, 5080-430 = 5250® 9c. *Note at 4 mouias. W. C. McDonald, • Montreal. 10 caddies '-Royal Arms"' Tobacco, 18J lbs. each, @ 4Gc. 10 caddies "Prince of Wales No. 1" Tobacco, 20 lbs. each, - - @ 45c. 10 boxes " Western Leaf Tobacco, 110-9 111-11, 113-12, loy-11. For Cash. 114 10, 11510, 112 12, 112,10, 115-10, 110-10, 1121-105= 101G@ 40c. 90 400 400000 10 00 472 50 40; I 581 J. E. Mullen ft Co., • MontreaL 10 half-chests Conjon Tea, 74-10, 79-14, 70-12, 74-15, 70-10,79-14, 71-12, 79-12. 70-14, 70 11. 703-121 = 039 @ 53c. 10 hall-cbests Oolons: Tea, 59-14, 60-12, 02-10, 58-11, 57-10, 58-12, 60-10, 04-11, 07-12, 59-9, C04-111 = 493 @ 54c. Note at 4 months. Amount forward - - 838 07 200 22 004 89 50 5058 89 24 02 *If the note be received as soon as the o-der is bookcl, the transaction could be treated, as regards posting, as a Cash purchase.! r., in tial it B B. in Ledger folio column in Invoice Book, and I. B. in Ledger folio columo in Lill Book. But in actual business, goods, as a rule, are sold, wholosa'e, from samples by Commercial Travellers (vulgarly called "Drummers.") and as the Traveller makes sales, he sends the orders home for execution, and the goods are ship- ped in duo course to the purchaser, and a promissory note for the amount is sent to him for signature. (According to business osace a promissory note is not issued until the merchant has received and examined the gooJa aaJ found tbeoi according to sr npl?, or order or invoice.) 188 THE PRACTICAL BOOK-KEEPER. THE INVOICE AND SALES BOOKS WITH EXPLANATIONS FOR POSTIJJG TO LEDGER. 8 ' *TnE Invoice Book is kept for the purpose of entering therein all purchases of Merchandise. =^'At the end of each month, the total footings of this book must be posted to tlie Debit of Merchandise ; and each person (seller) should be daily credited in the Led<;er with the amount of each invo'ie bought of him, as per Invoice Book, excejitimj imrrhnsesfor cash, ^ ' ^ which purchases it will not be necessary to post to the Credit side of such person's (seller's) account, but they must be initialled C. B. in folio column, in order to show that they are carried to the Cash Book, (Or. side) where, in the folio column they must be initialled there I. B., so as to show tlmt they are brought from the Invoice Boob. ' ^ ^By this method, Merchandise is debited in the footings of the Invoice Book '^*and Cash is credited in the footings of the Cash Book, ^'*so that, journalized, the entry would be " Merchandise Dr. to Cash." "8 "The Sales Book t ko'^ .• the purpose of entering therein all sales of Merchandise. ' * ^ At the close of each montli, the total footing of this book must be posted to the Credit T Mkrchanpise, and each person (buyer) should be daily debited in the Led^/'^r fi. 'bo .t^iount of each parcel sold to him, as per Sales Book, excepting sales for Cash, ^^^which sales it will not be necessary to post to the Dr. side of the person's (buyer's) account, but they must be initialled C. B. in folio column, in order to show that they are carried to the Cash Book, (Dr. side) where, in folio column, they must be initialled S. B., so as to show that they are brought from the Sales Book. "'^Merchandise is credited in the footings of the Sales Book, '■' ^ *and Cash is debited in the footings of the Cash Book, BO that, journalized, the entry would be " Cash Dr. to Merchandise." \;i TUK PUACTICAL BOOK-KlitPEB. X39 Toronto, November 1st, 1882. , D. M. "Wilson and W. J. Co,van, have this day formed a co-part- nership for the purpose of condiictiug a Wholesale Grocery Trade, under the firm name of , Wilson & Co. Gains and losses to be shared in proper- tion to capital invested. W. J. Cowan invests as follows: Cash, as per C. B., $2000; Merchandise, as per Inventory, :p4()00. A note signed by A. Manning, Kingston, Out., at 8 mouths from August IStli, 1882, with interest at 7 %, for .>?1800. Debt of W. Briggs to him, $100; Total, . (I. B., J., C. B. & B. B.) Less his (W. J. C's) indebtedness, as follows: Promissory note, favor of J. D. Davis, at 3 mouths from September 1st last, with interest at 7 7, for 81500 (J. & B. B.) IST. Rented of Jones Bros., the premises at No. 27 Wellington Street West, at an annuiil rental of $1000, to be paid in eijual monthly instalments. (Memo.) 1st. Paid R. Hay & Co., Cash for 2 Office Chairs @ $7.00 each; 8 Walnut Chan-8 for office, @ $2.50; I Walnut Desk @ $80; 1 doz. Common Chairs @ $8.00. (C. B.) 1st. Paid J. P. Wagner & Co., Cash for Store Fixtures, $150. (C. C.) 1st. Engaged Robert Cameron, as Book-keeper, at a salary of $83.34 jier month. (Memo.) 1st. Engaged W. Curran, as porter, at a salary of $9.00 per week. (Memo.) 1st. Discharged W. Denison, and retained T. W. Cameron at an increased salary of $00 per month. (Memo.) 1st. Bought of Canada Sugar Refining Co., Montreal, on note at 4 months, 20 bbls. Reflued Sugar @ 9c., 281-21, 282-22, 292-24, 290-21, 280-21, 291-21, 282-22, 281-22, 285-22, 287-22, 281-21, 282-22, 290-22, 280-21, 272-20* 281-21, 282-21, 274-21, 281-21, 282-22. Paid freight in Cash, $17.5o! (I. B. & B. B.) 1st. Received of J. D. Davis, City, Cash in full of account. (0. B.) 1st. Bought of W. C. McDonald, Montreal, for Cash, 10 caddies "Royal Arms" Tobacco, 18i lbs. each (W) 4Gc. ; 10 caddies "Prince of Wales No. 1" Tobacco, 20 lbs. each, @ 45c.; 10 boxes "Western Leaf" Tobacco @ 40c., 110-9, 114* 10, 115-10, 111-11, 110-10, 112-12, 112-10, 113-12, 116-10, 109-11. ' Paid freight in Cash, $5.25. (I. B. & C. B ) 1st. Discounted at Bank of Commerce, A. Manning's Note, dated August 15th last. Interest ; Discount days. Proceeds to our credit. (See Example 8, Page 87.) (C. B.) 'i^i ■*>ll!i*mHB«1 140 THE PfiACnCAL BOOK-KEEPCU. IST. Bought of J. E. Mullin & Co., Montreal, on note at 4 months, 10 half- chests Congou Tea @ 53o., 74-10, 79-14, 70-12, 74-15, 79-10, 79-14, 71-12, 79-12, 70-14, 70-11; 10 half-chests Oolong lea @ 54c., 59-14, 00-12, 02-10, 68-11, 57-10, 58-12, GO-10, 04-11, 67-12, 51.'-9. Paid freight in Cash, $8.75. (I. B. & B. B.) 2nd. Eeceived of W. Dunn, City, Cash in full of account. (C. B.) 2nd. W. Brown, Chatham, Ont., has failed, and has paid 87 cents in the dollar in cash. We have settled his account with Assignee by accepting the ahove. (C. B.) 2nd. Sold J. D. Davis, City, on Note at 3 mos., 8 half-chests Congou Tea @ 60c. ; 74-10, 79-14, 70-12; 4 bbls. Refined Sugar @ 9}c.; 281-21, 282-22, 292-24, 290-21; 8 boxes "Western Leaf" Tobacco @ 45c.; 110-9, 114-10 115-10. §28.00; 4 bbls. Granulated Sugar @ lie, 284-21, 290-22, 290-22, 294-22. (S. B. & C. B.) 18th. Bought of Frank Smith &Co., City, on note at 4 months; 10 half-chests Gunpowder Tea @ 57c., 79-12, 78-14, 79-15, 80-11, 81-12, 78-12, 79-15, 70-11, 80-10, 81-14 ; 10 hnlf-chepts Congou Tea @ 55c., 70-14, 79-15, 70-12, 79-17, 70-10, 74-14, 78-14, 70-14, 70-12, 79-14; 10 half-chests Japan Tea & 50o., 00-14, 59-10, 70-14, 04-12, 59-12, 01-12, 00-10, 70-12, 80-14, 02-12. (I. B. & B. B.) 14tii. Sold W. H. Dennis, Barrie, Out., on 2 months, 5 half-chests Japan Tea @ 57c., 00-14, 59-10, 70-14, 04-12, 5912; 8 bbls. Reiiued Sugar @ lOc, 291-21, 280-22, 280-21 ; 50 gals. English Malt Vinegar @ 55c. (S. B.) 14tu. Sold James Iledley, Brampton, on note at 2 months, 5 half-chest?' Gun- powder Tea @ 05c., 79-12, 78-14, 79-15, 80-11, 81-12; 5 bbls. Refui. " ,-, gar @9ic., 294-21, 294-22, 284-21, 274-21, 290-22; 10 boxes 0. Friend, 4 doz. each^ @ $2.75 per doz.; 5 bags Java Coffee @ 85c., 110-0, 1080, 107-0, 104-9, 104-0. (S. B. & B. B.) Mm. Sold Edw. Trout, City, on 2 months, 4 doz. L. & P. Worcester Sauce @ $0.20 ; 4 boxes James' Ball Blue, 28 lbs. each, @ 15c. ; 2 bags Rice, 220-4, 227-8, @ 4o.; 4 bbls. Pulv. Sugar @ lie; 294-22, 294-21. 231-22, 274-22. (S. B.) 15TtI. Discounted the following Notes at Bank of Commerce: J. D. Davis' Note dated Nov. 2nd, inst. ; W. H. Covert's Note, dated Nov. 4th, inst, ; W. Muir's Note, dated Nov. 7th, inst.; *W. Mitchell's Note, dated Nov. 7th, inst.; W. Munro's Note, dated Nov. 9th, inst. ; J. D.Davis' Note, dated Nov. 9th, inst. Discount . Proceeds to our credit. (C. B.) *See Example 8, Page 87. 144 THE PRACTIOAIi BOOR-KEEPER 1/5TFI. nonglit of Geo. Tnckett, Tlamilton, for cnsli, 40 boxoa "Myrtle Navy" Tobacco, IH IbH. not each, (, 2H, 25, 21 ; I qnartor-casks " Jules Hobm" Biaudy C") S'fJ.OO, 25, 28, 29*, 29; 2 bbls. xMus. Molasses @, Hlc, 8U, 12; 10 boxes Cook's Friend, 4 doz. each, (it: $2.75; 10 boxes Benson's Corn Starch, 40 lbs. each, @ 10c. ; 10 caddies M. N. Tobacco @ 020., 18 lbs. each. (I. H.) 20x11. Sold W. Muir, City, for Cash, 10 caddies "M. N." Tobacco @ 01c. per lb.; 5 lialf-cluvsts Oolong Tea @ OOc, 5!)-15, CH-14, 00-15, 57-14, 5H-14; 5 cases Starr Salmon, 4 doz. each, (/2.10; 5 bbls. Granulated Sugar (^ lie, 286-22, 287-22, 28'J-22, 20 1-21, 292-22. (S. 13. & 0. B.) 2 1st. Bought of Fi-!ink Smith & Co., on 80 days, 10 bbls. "Dry Crushed" Sugar @ He, 201-24, 29;{-22, 284-21, 200-22, 201-24, •".(2-21, 21)1-22, 287-22, 290-21, 291-22; 10 bags Java Coffee @ 25u., 107 li, 100-7, 114-0, 114-7, 109-0, 108-0, 117-7, 114-0, 112-7, 110-G; 10 bbls. Refined Sugar @ 9c., 291-22, 294-22, 291-22, 291-24, 2i»l-22, 281-24, 295-24, 290-21, 280-20. 292-24; 10 sacks Sago @ 5^0., 148-8, 150-4, 151-3, 140-4, 147-5, 148-8, 147-4, 150-8, 149-2, 148-4; 10 half-bbls. No, .' Crown Syrup @ 75c. per gal., \^, 20, 19, 18, 18, 19, 21, 21, I8,i, 19. (I. B.) 21ST. Eemitted J. E. Mulliu & Co., Montreal, draft on Bank of Montreal, Exchange at ^ % prem., to balance their account, loss 8 /^. (C. B.) 22nd. Sold Goo. Devine, for Cash, 4 bbls. " Dry Crushed" Sugar, 291-24, 293-22, 284-21, 290-22, V-7 lUc; 8 sacks Sago, 118-8, 150-4, 151-8, @ Oc; 4 bbls. Eefined Sugar, 291-22^ 294-22, 291-22, 291-24, @ 9^0. (S. B. & C. B.) 22nd. Sold J. K. Cameron, Parkdale, on note at 2 months, 4 bbls. !Mus. Molasses, 44, 47, 44, 45, @ 80c. gal.; 4 quarter-casks English Malt Ymeerar, 29, 80, 25, 24, @ 54c.; 50 lbs. Whole Cloves @ 41c.; 50 lbs. Whole Nutmegs @ 52c. (S. B. & B. B.) 22nd. Paid the porter one week's salary. (C. B.) 23l!D. Made a draft on C. A. Fleming, Owen Sound, to balance account, at 60 days after sight, payable at Bank of Commerce, here, and sent it to him for acceptance. (Memo.) 23rd. Made a draft on W. H. Dennis, Barrie, Ont., to balance account at 00 days after sight, payable at Bank of Commerce, here, and sent it to him for acceptance. (Memo.) ft rr 146 THE PRACTICAL BOOK-KEEPER. Received of Geo. Devine, Giv, Gash to apply on account, $250. (G. B.) •2Brd. Sold W. Dunn, Gity, 4 bags Java Coffee, 107-6, 109-7, 114-6, 114-7, @ 28c.; 4 bbls. Refined Sugar, 291-22, 281-iil, 295-24, 290-21, @ 9Jc.; 4 sacks Sago, 147-5, 143-8, 147-4, 150-8, @ 5^0. ; 4 half-barrels Grown Syrup, 18^, 20, 19, 18, @ 76c. (S. B.) 2Srd. Sold W. H. Govert, Gity, 4 half-bbls. Grown Syrup, 18, 19, 21, 21, @ 77c.; 2 sacks Sago, 150-8, 149-2, @ 5^c.; 4 bbls. Refined Sugar, 282-21, 274-21, 284-21, 282-22, @ 9^0. (S. B.) 28rd. Sold D. Hoskins, City, on note at 2 months, 8 boxes Bensou's Corn Starch, 40 lbs. each, @ 10c. ; 10 caddies "11. A." Tobacco, 18^ lbs. net each, @ 49c.; 10 caddies "P. of W." Tobacco, 20 lbs. net each, @ 47c.; 8 half- ch3sts Congou Tea, 74-14, 78-14, 76-14, @ 60c.; 8 half-chests Guupowder Tea, 78-12, 79-15, 76-11, @ 60c. (S. B. & li. B.) 24th. Received of Edw. Trout, City, Cash to apply on account, §100. (C. B.) 24rH. Bought of A. Haivey & Co., Hamilton, on note at 4 moutlis, 200 boxes D. Herriugs @ 21c. ; 20 boxes Pure Starch, 89-3, 37-3, 30-3, 39-4, 39-3, 38-4, 37-4, 30-3, 39-4, 31)-4, 37-4, 39-8, 81-3, 31-3, 37-3, 37-4, 37-3, 37-4, 39-5, 89-3, @ 6ic.; 20 boxes Bensou's Coru Starcli, 40, 41, 42, 43, 44, 41, 42, 48, 40, 89, 87, 38 41, 42, 43, 44, 40, 41, 89, 40 Gross— Tare 8 lbs. each, @ 81c. Pail freight in Cash, $3.20. (I. 15. & B. B.) *2orii. Bought of Geo. Tuckett, Hamiltuu, Out., on 30 days, 60 caddies "M. N." Tobacco, 19, le, 20, 21, 1^3, 2i, 18A-, 19^, 18, 20, 21, 'I'l, 2n, 21, 18, 18, 17, 21, 22, 21, 22, 21, 17|, 19, 19, 20. 21, 22, 19, 19, 18, '17, 19, 20, 21, 22, 17, 20, 21, 21, 19, 18, 17, 18, 21, 21, 23, 24, 21, 2b, 24, 21, 21, 18, 19, 21, 24, 21, 18, 17, & m^. Paid freight iu Cash, !?5. 50. (LB.) 25x11. Sold D. Hoskins, City, 10 caddies "M. ? Tobacco, 19, 18, 20, 21, 23, 24, 18i, 19i, 18, 20, @ 02c.; 20 boxes D .rriugs @ 25c.; 4 boxes Ben- son's Coru Starch, 40, 41, 42, 43, @ 10c. i boxes Pure Starch, 89-8, 87-0, 86 8, 39-4, fe 7c. (S. B.) 27tu. Received of W. Duun, City, Gash to apply on account, §100. (C. B.) ' 27tu. Received of W. H, Covert, City, Cash to apply on account, $120. (0. B.) 27th. Bought of Wilson & Muuro, London, Ont., on 80 days, 20 cases " Henncssy " Brandy @ $10.50; 40 cases "Jules Robin" Brandy @ $9.50; 20 cases "Martel" Brandy @ $8.75. *Paid freight in Cash, $7.50. (I. B. & C. B.) *Keep special column, in Cash Book, for freight. r.i THE PRACTICAL BOOK-KEEPER. 147 27th. Sold D. Moore, City, for Cash, 4 cases " Hennessy " Brandy @ $11.00; 10 cases " Jules Eobin " Brandy @ $9.75; 10 cases "Martel" Brandy @ |9.00; 10 bbls. ''"Rye Whiskey, 40.0 8, 41. o*, 40.o', 42.o«, 41.<", 41.o«, 42.o', 42, 40.o», 41.o«, @ $1.85. (S. B. & C. B.) 28th. 0. A. Fleming, Owen Sound, has returned draft made ou bim on 23rd inst., accepted; date of acceptance, Nov. 2Gth. (B. B.) 28th. Sold W. Mitchell, City, 10 oaser "Jules Robin" Brandy @ $9.75; 10 caddies "M. N." Tobacco, 21, 22, 2U, 21, 18, 18, 17, 21, 22, 21, @ G2o.; 10 boxes Benson's Corn Starch, 44, 41, 42, 43, 40, 89, 37, 88, 41, 42, @ 10c. (S.B.) 28th. W. He Dennis, Barrie, Ont., retnined draft made on bim on the 23rd inst., accepted; date of acceptance, 25th November. (B. B.) 29th, Remitted Wilson & Munro, London, draft on Bank of Commerce, pur- chased at -^ % premium, for invoice of the 27th inst., less 8 % discount. (G. B.) 29th. Sold W. H. Dennis, Barrie, Out., 4 bbls. Refined Sugar, 291-22, 292 22, 291-24, 291-22, @ 9^0.; 4 half-chests Japan Tea, Gl-12, 60-10, 70-12, 80-14, @ 55c. 29Tn. Bouglit of Perkins, Ince & Co., City, on note at 4 mouths, 20 half-chests Japan Tea, 79-14, 80-15, 81-12, 79-14, 79-12, 76-14, 79-14, 76-12, 80-14, 81-14, 76-12, 82-14, 81-13, 77-13, 74-14, 75-14, 76-14, 79-14, 76-14, 76-12, @ 52c.; 20 half-chests Qjloug Tea, GO-14, 59-14, 57-14, 60-15, 61-14,01-14, 56-14, 62-14, 61-14, 62-14, 61-15, 57-15, 61-15, 62-14, 08-14, 62-14, 59-15, 59-16, 59-15, 64-14, Q 55c.; 10 half-chests Young Hyson Tea, 70-14, 71-15, 72-14, 70-15, 77-14, 70-15, 76-14, 67-14, 70-14, 76-14; 10 chests " Seuegar " Tea, 104-20, 105-22, 106-20, 109-22, 106-18, 109-22, 106-20, 108-21, 109-19, 110-20, @ 84c. (I. B. & B. B.) 80th. Paid the porter one week's salary. (C. B.) 80th. Sold Edw. Trout, City, 4 chests "Senegar" Tea, 104-20, 105-22, lOG-20, 109-22, @ 37c.; 4 half-chests "Oolong" Tea, 00-14, 59-14, 57-14, 6015, @ 60c.; 4 half-chests Japan Tea, 79-14, 80-15, 81-12, 79-14, @ 56c. (S. B.) 80th. Sold W Muir, City, for Cash, 5 half-chests Oolong Tea, 61-14, 61-14, 66-14, 62-14, 61-14, @ 60c.; 10 boxes Pure Starch, 89-8, 88-4, 87-4, 36-3, 89-4, 39-4, 87-4, 89-8, 84-3, 84-3, @ 7c.; 10 caddies "M. N." Tobacco, 22, 21, 17i, 19, 19, 20. 21, 22, 19, 19, @ G5o. (S. B. & C. B.) 80th. 148 THE PRACTICAL BOOK-KEEPER. Received of Edw. Trout, City, Cash to apply on account, $200. (C. B.) 80th. Renewed our Note favor Wilson & Mnnro, due 29th instant. Gave in payment, Cash $100. Our Note at 2 months, with interest added, for balance. (J., C. B. & B. B.) 80th. Sent Geo. Tuckett, Hamilton, cheque on Bank of Commerce for invoice of 25th instant, less 8 %. (C. B.) 80th. Discounted the following Notes at Bank of Commerce ; J. Hedley's, dated Nov. 14; G. Bull's, dated Nov. 16; A. Manning's, dated Nov. 17th ; J, K. Cam- eron's, dated Nov. 22nd; D. Hoskn, .,, dated Nov. 23rd; C. A. Fleming's, dated Nov. 28th; W. H. Dennis', dated Nov. 28th. Discount, ; Proceeds to our credit. (C. B.) 80th. Paid the following expenses in Cash : 1 month's rent, ; 1 month's salary to book-keeper, ; 1 month's salary to T. W. Cameron, ; 1 stove for Office (Office Furniture), $25; Stationery, &c., $5.75. (C. B.) 80th. Take a trial balance, and proceed with the business of next month. QUESTIONS FOR REVIEW. »«"If the Cr. side of Cash Book should be found to be the larger, what would it show ? •"Explain the method of posting from the ordinary Cnsli Book ? «" •When a Cash Book is ruled with special columns, explain how the posting is dune ? «e3What is the use of the Bill Book? »"■' Explain the method of posting from the Bill Book ? • •'Whenall tlie transactions are entered in Cash Book, what is the Book called? • •'What entries are pos^d from the Cash Journal ? • • 'Where are Bills Receivable and Bills Pay- able posted from ? •"•How are transactions, in which Cash is received or paid, entered in the Cash Journal ? •••How are transactions, whore no Cash is received or paid, entered in the Cash Journal? '"What effect will the last Entry have on the sides of the Cash .lou nal? '"How is Bank account kept in this month? '••For what purpose is the Invoice Book kept ? "Explain the method of posting from the Invoice Book? '"How are Cash purchases treated, as re- gards posting, in the Invoice Book ? ' 'In Cash purchases, how does Merchandise become debited ? "In Cash purchases, -.vhat account only is credited? Explain. ""For what purpose is the Sales Rook kei)t? " 'Explain the method of posting from Sales Book? ""How are Cash sales treated, as regards posting, in Sales Book ? '»In Cash sales what account becomes credited? Explain. "■•In Cash sales what account becomes debited? Explain. Note.— Tbo answers to the above questions are to be written out by the student and handed to (be teacher fui iuspectiuu before t^iug ou with the next mouth. COMMISSION BUSINESS. KEEPING A COMMISSION SALES BOOK, CASH BODE. JOURNAL AND BILL BOOK, AND POSTING DIRECTLY FhOAI THESE BOOKS TO THE LEDGER This mouth's business will consist principally of goods received and shipped on commission, to be sold on account and risk of Consignor, and on joint account and risk of Consignor and other parties. In actual business, goods, as a rule, are shipped on account and risk of Consignor, and very seldom, if ever, on joint account. But by giving examples and explanations for journaliz- ing such transactions, and of entei-ing them in the Commission Sales Book, Cash Book and Bill Book, and posting from these books to the Ledger, gtw benefit will be derived from the discipline it atlurds. THE PBACTICAL BOOK-KEEPER. 151 ^HEN, AND FOR WHAT. THE FOLLOWING ACCOUNTS AHE DEBITED AND CIIEDITED. SHIPMENTS. 2««0EEDITED for wlmt tliey produce, or for net proceeds. 2 »•' DEBITED for amount of goods sLippcd and all costs. 98 7j3y (( Shipments," we mean the Ledger title given to represent goods shipped to be sold ou acconnt and risk of Consipuor, **^siiice the Dr. side shows tlic cost, and the credit side what they produce, the difference must be Gain or Loss. SUIPMEXTS IN CO. '9 "CREDITED for what they produce, or our (Consi;juor'sj net pro- ceeds. ^«9DEBJTED for onr (Consignor's) share of goods shipped, also for our share of other parties addi- liiiis, and our (Cousijuor's) ehare of cost. aaijjy "Shipments in Co.," we mean the L-^dger title used to represent the Consignor's share in Merchandise sliipped by him to be sold on joint a 'count and risk of himself and other parties. ==''-'The dilYerence between the Dr. and Cr. sides being a " Loss or Gain.'" CONSIGNMKNTS. ••■'DEBITED for all charges paid when -»*03.LDITED for all sales, received, and for all costs while in your possession, ou closing the consigumeut, you debit it to storage, coiiiLuissixn and Cju- , siguor's net proceeds. j 895j3y << Consigurapn*^," we mean the Ledger title given to g<^ols received bv you (Cousij,'ioe) to be sold on account and risk of Consignor. This account boing debited for all charges and for Consignor's net proceeds, and Cr. for all ealos. -*"The account shoidd balance when posted to the Ledger. SALES CO'S. *i»DEI3ITED for our (Consignee's) '^ »- CREDITED lor all sales, share of the Consignor's goods, also our share of any additions made by other parties, and cliarges paid by us ^Consignees) wiien we receive the goods. On closing the company it is debited for com., storage, &c., the Con eignor's and other parties net jnoceeds and Loss and Gain, if there is r. gain ; debited if a loss. £9 8i3y "gales Co's " we mean the Ledger title used to represent the (Consignee's) interest in goods received by liim to be sold on joint account and 'ii c^' 152 THE PRACTICAL BOOK-KEEPER. risk of himself and other parties. This account being debited for all charges and for net proceeds of each party concerned and credited for sales, the account will balance when posted to Ledger. Examples illustrating the Journal entries, Cash Book entries, and Bill Book entries for Shipments, Shipments in Co., Consignments, and Sales Co's. Example 1. 3 ""Consignor's Day Book and Journal entries upon shipping goods to be sold on his account and risk, all entries posted from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Shipped R. E. Gallagher, Hamilton, to be sold on my account and risk: 100bbls.XXXFlour@$6 GOO 00 Shipment to Hamilton, To Merchandise, GOO 00 GOO 00 Shipment account is debited for amount of goods shipped. Merchandise is credited because it is parted with by being shipped to be sold for us. Example 2. S"iThe Consignor's Day Book and Journal entries on receiving account of sales of above shipment, all entries posted from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Received an account of sales of goods shipped to R. E. Gallagher, Hamil ton, to be sold on our account and risk, net proceeds to our credit. 680 00 R. E. Gallagher, To Shipm't to Hamilton 030 00 G80 00 R. E. Gallagher is debited because he becomes indebted to us for net pro- ceeds of shipment (sa''^s less the charges) which proceeds are retained by him. Shipment account is credited because it produces or realizes $G30 (net proceeds). Example 8. 8 "8 Consignee's Day Book and Journal entries on receiving the above con- signment from Edw. Trout, Toronto, all entries posted from Journal. day book ENTRY. JOURNAL ENTRY. Received from Edw. Trout, to be sold on his account and risk, 100 bbls. XXX Flour. Paid freight in Cash 20 00 E. Trout's Consignment, To Cash - - - 20 00 20 00 Consignment account ia debited because we have paid for freight on receiving it. Cash is credited because it is paid. THE PRACTICAL BOOK-KEEPER. 163 Example 4. '"^if t]je above transaction were entered in the Commission Sales Book, posting thence to Ledger, and the Cash from Cash Book, the entries would be Db. sales book. Account to be creilited in Ledger. ExiJlanations. Transportation. Received from Edw. Trout to be sold on his account and risk, 100 bbls. Flour. Paid frieght in Cash .... 20 00 Transportation is credited from Sales Book, because we find it debited from Cash Book for this amount, also because it is the account in Sales Book in column headed " Account to be credited in Ledger." Example 5. •'"'♦When the Cash in Example 1 is entered in Cash Book and posted thence to Ledger the entry would be CASH. Ob. Account to 1)6 debited in Lodger. Explanations. Transportation. Freight on Edw. Trout's con- signment 20 00 Transportation is debited from Cash Book because we find it credited for same amount from Commission Sales Book, also because it is the account in Cash Book in column headed "Account to be debited in Ledger." Example 6. sosThe Consignee's Day Book and Journal entries upon selling this (Edw. Trout's) consignment for Cash. DAY BOOK ENTRY. JOURNAL ENTKY. Sold W. Brown, for Cash, 100 bbls. XXX Flour @ $0.75 (E. Trout's cou- sigumeut) 075 00 Cash To E. Trout's consignm't 675 00 675 00 Cash is debited because it is received. Consignment account is credited because it is sold. Example 7. 3 ""If the above transaction were entered in the Commission Sales Book, posting thence to Ledger and the Cash from Cash Book, the entry would be SALES BOOK. Cb. Account to bo liobited in Lodger. Explanations. W. Brown. Sold for Cash, 100 bbls. XXX Flour @ §6.75 675 00 W. Brown is debited from Sales Book, because we find Ixim credited from Cash Book for the same amount. :« [l 154 THE PRACTICAL BOOK-KEEPER. EXAMPLK 8. 3<"WIicn the Cash in above transaction is entered in Cash Book an(I posted thence to Ledger, the Eutry would bo Dr. cash. Account to bo credited in Ledger. KxplanatloD8. W. Brown. Sold him 100 bbls. XXX Flour $G.75 (E. Trout's consignment) G75 00 W. Brown is credited from Cash Book because we find him debited for above amount from the Commission Sales Book, also because it is the account in Cash Book in column headed *' Account to be credited in Ledger." Example 9. '"^Consignee's Day Book and Journal entries on closing the consignment and rendering Account of Sales to the Consignor, posting from Journal. day book entry. LEDGER ENTRY. Closed Edw. Trout's Con- Edw. Trout's Cousignme't 1 G50 00 signment, and rendered To Storage - - - 1150 him account of sales. 1 " Commission 13 50 Commission 2 % on sales. 18 50 i " Edw. Trout 030 00 Storage 11 50: Net proceeds to his credit 030 00 1 i " Consignment" account is debited for charges such as Commission, Storage (was debited, when received, for freight) and the Consignor's net proceeds. Storage is credited for what it has produced; Commission is also credited for what it has produced ; Edw. Trout is credited because we (Consignee) are indebted to liim for amount of his net proceeds. Example 10. 3ooif ti)i3 transaction were entered in Commission Sales Book and posted thence to Ledger, tlie eutry would be Dr. sales CO. 1. Accoiuit to bo credited in Ldlger. Explanations. Storage. Commission. Edw. Trout. On 100 bbls. Flour 2 % on sales His net proceeds 11 13 030 50 50 00 055 00 Storage is credited for what it has produced, also because it is the account in Sales Book in column headed " account to be credited in Ledger." Commission is credited for what it has produced, also because it is the account in Safes Book headed "Account to be credited in Ledger." Edw. Trout is credited because we become indebted to him, also because it is the account in Sales Book in column headed "Account to be credited in Ledger." THE PRACTICAL BOOK-KEtPKB. 166 Example 11. sioConsignor's Day Book auci Jourual entries on shipping goods to be sold ou joint account and risk of himself and Consignee, each one-half. DAY BOOK ENTRY. JOURNAL ENTRY. Shipped II. E. Gallagher, Hamilton, to bo sold on joint account and risk of myself and Consignee, each one-half, lUO bbls. Flour @ ipG.UU. GOO GO Shipment Co. • • - ii. E. Gallagher - - - To Merchandise, HOO 00 300 00 GOO 00 "Shipment Co." account is debited for our (Consignor) share of goods flhipped. II. E, Gallagher is debited because he becomes indebted to us for one-half of goods supplied by us. Meiohandise is credited because it is parted with by bd ig shipped. Example 12. 3' ^Consignor's Day Book and Jourual entries on receiving an account of sales of above from Consignee. HAY BOOK ENTRY. .TOURNAL ENTRY. Received from It. E. Galla- gher, Hamilton, account of sales of goods shipped him to be sold on joint account, each one-half, i Net proceeds to our \\ credit I 315 00 i I R. E. Gallagher - - - To Shipment Co., 815 00 315 00 R. E. Gallagher is debited because he becomes indebted to us for our net proceed.'^, which proceeds are returned by him. " Shipment Co." account ia credited because it produces or realizes $815 (net proceeds;. ... , 1 ^ —^ ■ - Example 18. ^'^Consignee's Day Book and Jourual entries on receiving the above Co. from Edw. Trout, Toronto, to be sold on joint account and risk, each one-half, all entries being posted from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Received from Edw. Trout, Sales Co. 1. - - - - 1 1 320 00, Toronto, to be sold on To Edw. Trout - 300 00 joint account and risk of " Cash - - - 20 00 Consignor and myself, each one-half, 100 bbls. Flour @ $G.00 GOO 00 " Paid freight in Cash - - 20 00 1 1 1 'Sales Co." account is debited for our (Consignee) share of the Invoice, also for what was paid for freight. 15G THE PRACTICAL BOOK-KEEPER. Edw. Trout is credited because we become indebted to him for one-half of the Invoice which was supphed by liim. Cash is credited because it is paid. Example 14. 3 "If this transaction were entered in the Commission Sales Book, posting thence to Ledger, and the Cash from Cash Book, the entry would be Db. sales CO. L Account to 1)0 credited in Ledger. ICxplanations. Eeeeived from Edw. Trout, To- ronto, tobosold on joint account and risk, each one half, 100 bbls. Flour - - @ $G.OO Transportation. Paid freight 20 00 Edw. Trout. For our one-half of Invoice - - 300 00 1 Transportation is credited because we will find it debited from Cash Book for above amount, also because it is the account in Sales Book in the column headed "Account to be credited in Ledger." Edw. Trout is credited for our half of goods received, because we are indebted to him for the same, also because it is the account in Sales Book in the column headed "Account to be credited in Ledger." For Cash Book, and posting therefrom, see Example 6. Example 15. !ii4\vhen the Consignee sells the above goods (Sales Co. 1) for Cash. For Day Book and Journal entries see Example 6. Sales Co. is credited in tliis case. • Example 16. The Consignee's Day Book and Journal entries on closing the above " Sales Co." and rendering account of sales, posting from the Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Closed Sales Co. 1, and rendered account of sales Storage ll|50 Commission 2 % on sales I 18150 Edw. Trout's half net pro- ceeds I 315|00 Loss and Gain - - - - ' 15,00 Sales Co. 1 ... To Storage - - " Commission " Edw. Trout - " Loss and Gain 355:00 1150 18 50 315 00 15 00 I For explanations see Example 9. The Loss and Gain is found by compar- ing our share of the Invoice, which was $300, and our net proceeds which is §315. Therefore the Gain must be $15. The net proceeds are found by subtracting all the charges, such as Freight, Storage, Commission, &c., from the Sales, or what the goods were sold for. The difference is the net proceeds, and is placed to the credit side of the Consignor's account, if shipped on his THE PnACTIOAL BOOK-KEEPER. 167 account and risk. If shipped on joint account, one-half the amount thus found is placed to the credit side of his account. Half of Invoice has been placed to the credit side of his account when the goods wore received. Example 17. "•'^When the Consignee sells the goods for Cash, and entries posted from Sales Book and Cash Book. by he Acconnt to be dobitod In Ledger. SALES CO. 1. Explanations. Cr. "W. Brown. Sold W. Brown, for Cash, 100 bbls. Flour - - @ $6.00 GOO 00 For explanations see Example 7, and for Cash Book and explanation, see Example 8. Example 18. 3 1 "The Consignee's entries in Commission Sales Book on closing the Sales Co. and rendering account of sales, the entries to be posted from Bales Book. Dr. sales CO. 1. Sales to bo credited in Ledger. Explanations. Storage - - Commission - Edw. Trout • Loss and Gain On 100 bbls. Flour 2 % on sales - • - His half net proceeds My half Gain - - 11 50 13 50 315 00 15 00 1 For explanations see Example 10. Example 19. si^Consignor's Day Book and Journal entries on shipping to be sold on joint account and risk of Consignor and Consignee, each one-half, and the Con- signor adds, all entries posted from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Shipped E. E. Gallagher, Hamilton, to be sold on joint account and risk, each one-half, 100 bbls. Flour @ $6.00 To which he adds 50 bbls. XXX Flour @ $6.50, to be sold on same con- ditions 600 00 81250 E. E. Gallagher - - Shipment Co. 1. - - To Merchandise, Shipment Co. 1 - - - To E. E. Gallagher soo;oo 500 00 156 25 600 156 00 26 E. E. Gallagher is debited because he becomes indebted to me for his shQ^re of my Invoice. 166 THK PRACTICAL UOOK-KKEPEB. Shipment Co. 1 is dobitod for your (Consignor's) share of goods shipped, also for your share of other parties addition. Moroliaudise is credited becaiiHe it is parted with by being shipped. 11. K. Galhijjher is credited because you become indebted to him for your abaro of his addition. s'*When we receive an account sales of above, and our net proceeds are placed to our credit, we debit tlie Consignee for same, because he becomes indebted to us, and credit the "Shipment Co.," because it has produced value. (See example 2). Example 20. ' ' "The Consignee's Day Book and Journal entries for above, after making the addition and posting from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. Received from Edw. Trout, Toronto, to bo sold on account, each one-half, 100 bbls. Flour @ $G. To which I have added, to be sold on same con- ditions, 50 bbls. Flour @ $0.25 Paid freight in Cash - - 000 00 312 50 20 00 Sales Co. 1 . . . To Edw. Trout " Cash - - Sales Co. 1 - - - Edw. Trout - - - To Merchandise 820 00 150 25 15025 800 00 20,00 81250 For explanations see Examples 11 and 13, page 155. Example 21. aaoxho Consignee's Day Book and Journal entries on selling the above for §1050 Cash, and posting to Ledger. (See Example 0.) Example 22. The Consignee's Day Book and Journal entries on closing the Sales Co. and rendering account of sales. Entries posted from Journal. DAY BOOK ENTRY. JOURNAL ENTRY. 80 til 489 83 00 00 50 25 Sales Co. 1 .... To Storage - - - " Commission " Edw. Trout - " Loss and Gain 578 75 80 21 489 88 Oi 00 50 25 Example 10. Closed Sales Co. 1, and ren- dered account of sales. Storage Commission 2 % on sales Edw. Trout's "W. T. to his credit Loss and Gain, our Gain Example 23. •' ' ' The Consignee's entry, in Commission Sales Journal for above trans- action, and posting from thence to Ledger. 0( 00 50 25 IS* TUE PRACTICAL nOOK-KKEPEU. Db. sales CO. 1. Aooount to be credtteil in Ledger, Rxplanatlont. 159 Edw. Tront • - Transportation - Merchandise - - Received from Kdw. Trout, To- ronto, to bo Hold on joint account and risk, each one-half: 100 bbls. Flour & $0.00 = $000 For my iialf of above - - - . Paid freight To which I have added 50 bbls. Flour . - . . @ $0.25 800 20 312 00 00 CO Edw. Trout is credited because we become indebted to him for our share of Mb Invoice, also because it is the account in Sales Book in column headed " Account to be credited in Ledger." Transportation is credited because we will find it debited in Gash Book for same amount, also because it is the account in Sales Book in column beaded "Account to be credited in Ledger." Merchandise is credited for our addition, because it is parted with, also because it is the account in Sales Book in the column headed "Account to be credited in Ledger." Example 24. This transaction would appear on the credit side of Commission Sales Book, for our addition, as follows: SALES CO. 1. 0». Account to be debiterl in Ledger. Explanations. Edw. Trout For one-half of our addition - - 156 26 Edw. Trout is debited because he becomes indebted to us for his share of our addition, 32 2 When this Co. is sold for Cash and entered in Commission Sales Book. (See Example 17.) When the Sales Co. is closed and Account Sales rendered, the entries being posted from Commission Sales 13ook. (See Example 18.) 3 2 3When the Consignor ships, to be sold on joint account and risk of him- self, Consignee and Third party, each one-third, he debits " Shipment Co." for his one-third of goods shipped aad one-third of charges, if any, and the Consignee and Thi'd party for same amount, and credits Merchandise for goods shipped, and Oa 11 or whatever he gives in payment of charges. •**In case the Consignor or Third party, or both, make an addition to what has been shipped, he (Consignor) would credit each of them for his share of their a Idition, and debit "Shipment Co." for amount. 3 The Third party's entry, on being informed by Consignor that he (Third party) has an interest in goods shipped by Consignor, to be sold on joint account, each one-third, would be to debit " Shipment Co." and credit the Consignor for one-third of goods shipped, ^sc]^ (.g^gg fj^g Consignee makes 160 THE PKACTIOAL BOOK-KKEPER. an addition, he would then debit the " Shipment Co.," and credit the Consignee for his one-third of the (Consignee's) addition. ^^''Ani further, in case he (Third party) makes an addition to above, he (Third party) would debit the " Shipment Co." for his one-third of his own addition; debit the Consignor and Consignee each for one-third of what he has added. 3 3*The Consignee's entry, upon receiving the above from Consignor, would be "Sales Co." Dr. toConsignorfcrone-tbird of goods. 32 9A.fter he (Consignee) makes the addition, he would debit the Consignor one-third of same ; Third party, one-third ; Sales Co. for his own one-third, and credit Merchandise for whole amount of addition. 3 3 o when the Third party makes an addition, he (Con- nigneo) would debit Sales Co. for one- third of same and credit Third party. OUTWAED INVOICE. Invoice of Goods shipped, in good order, and consigned to - WUiSON & Co., Toronto, Out., per Grand Trunk Bailway, to be sold on joint account and risk of Consignor and Consignees, each one-half. 1000 bus. Barley @ 65c. - Ch/vroes. Insurance @ 1 % - - - 650 00 6 50 656 50 E. & 0. E., Chatham, Ont., Dec. 11th, 1882. D. McLachlan, Consignor. OUTWARD INVOICE. Invoice of Goods shipped, in good order, and consigned to ■ — Wilson & Co., Toiouto, per Grand Trunk Eailway, to be sold on account and risk of Consignor. 500 bbls. Family Flour @ $5.25 - Chabges. Insurance @ 1 % 2651 25 E. & 0. E., St. Catharines, {3nt. Dec. 2nd, 1882. James Norris, Consignor. THE PEACTICAL BOOK-KEEPER. 161 ACCOUNT SALES. • Aooo^T Sa.es of 600 bbls. Family Flour, received from Jambs Norrxs St. Cathanne,, Ont to be sold on account and ri^k of Consignor, by Z' iBouT, Commission Merchant, Toronto, Ont. Dee. Sold J. D. Laidlaw, City, for Casli, 200 bbls. Family Flour @ $5.75 . . . innT', f- Rowland & Co., City, on Note at 2 8U0 bbls. I amily Flour @ 16.00 - . - Charges. Paid freijrht in Cash Cliarges for Storage and Insurance - - . Commission 2 % on sales mos. 1150 1800 00 00 Your netprocieds, due Jan. 13th, '83. 125 OOj 25iOO! 59 00 2950,00 209 100 2741 00 E. & 0. E., Toronto, G/12, 1882. Wilson & Co. ACCOUNT SALES. Account Sales of 1000 bus. No. 1 F Wheat received from R. E. Galt aguer Hamilton 0„t to be sold on joint account and risk of Consignor and Consij^nees' each one-hall, by Wilson & Co., Commission Merchants, Toronto^ Ont.' Dec. llj Sold W. P. HowlaiKl A Co., on 80 days, 500 bus. No. 1 Fall Wheat @ §1,27 - Sold D. Hoskius, Citv, for Casli, 500 bus. No. 1 Fall Wheat @ $1.28 - " 12 Charges. Paid Transportation chaigcs, in Ca.sh Charges for Storage and lusuiaiico - Commission 2 % on sales - - . . Total Xet Proceeds Your half net proceeds - - - Our half Invoice I Proceeds to your credit E. & 0. E., Toronto, 12/12, 1882. GSSlOO 010 00 75 00 21 75I 25 50: 576 38 600 00 127500 12225 , I 1152 75 117G88 Wilson & Co., per OD. 162 TH£ PBACTIOAIi BUOK-KEEPEB. Dr. Date. Account to be credited. COMMISSION James Norris' Explauations. Deo. Transportation* Charges - - - - Commission ■ - James Norria • Keceived of J. Norris, St. Catharines, to be sold on his account and risk, 500 bbls. Family Flour. Pp.id freight - - - - Storage and Insurance - 2 per cent, on sales - His net proceeds LP. 125 25 69 2741 00 00 00 00 2950 1 2050 00 00 Dr. Date. Account to be crcilited. bAI-ES KxpliUiatious. Dec. 11 Dec. 11 B. E. Gallagher Transportation* Charges - • • Commission - - B E. Gallagher Keceived of K. E. Gallagher, Hamilton, to be sold on joint account and risk, each one-halt. 1000 bus. No. 1 F.Wheat;ai.20 For our half of^In voice Paid freight . - . . Storage and Insurance - 2 per cent, on sales - • His half net proceeds • Balance brought forward - 600 75 14 12 2G(J 968 48 968 -48 30U OO 'I'bia account igdcliited from Cash B.ok. THB PiUOTIOAL noog- KEEPER. ItiS Date. BALES BOOK. Consignment No. 1. Account to be debited. Exiilanations. Dec. 11 J. D. Laidlaw* W. P. Howland& Co* Sold J. D. Laidlaw, for Cash, 200 bbls. Floor (ji 95.75 - Sold W. P. Rowland A- Co., 300 bbls. Flour tg 90.00 - Received in paviueu* their Note at 2 moa. - - . . UF. 1150 1800 2950 00 2950 00 D&te. Account to be debited. Company 1. Kxplanations. Dec. Ill W. P. How] and & Co Loss and Gain Inventory! - • Sold W. P. Rowland & Co., on ."i.: t^».\-*, 500 bus. : 'n Wheat vg »1.27 Our Net Less For our half of 500 bus. Fall AVliPiit remaining unsold (o) »1 20 ha. 635 33 00. 48 668 300 48 00 968 48 * These accoucta are credited from Cash Book and Bill Book. t Red Ink. 164 THE PBACXIOAIi BOOK-KEEPER. Db. Date. Acoount to be crediterl. Deo. I 1 W. H.Cennis Discount - - Do. - - - 11 J. D. Laidlaw - D. McLachlan W. Dunn --..-. W. Mitchell - - - W. H. Covert - - - - D. Hoskins O. Devine W. H. Knowlton & Co. W. Smith Edw. Trout W. Dunn - D. Hoskins 14 Discounts CASH Cash Explanations. In full of account - - . 3 per cent, discount on F. Bmith & Co'm account. On A. Harvey & Co'b Note 200 bbls. Flour (Consign ment No. 1) - - - Discounted sight draft made on him In full of account 500 bbls. wlour (Consign ment No. 1) ' - . . In full of account - - On account .... 1000 bus. Barley @ 70o (Saleb Co. 2) . . . 600 bus. No. 1 Fall Wheat (ij S1.28 (Sales Co.) - - On Notes due March 4 next Discount. Sundries 30 1 53 88 i 224 y/ 16 53 1150 600 207 263 oa 00 15 75 57V 51 155 163 3250 661 600 700 640 83 10. 00 61 00 00 00 .1'. ■>;»■,-(,- , Tim patcncAL book-keepeb. 165 Datf. Account to be debited. BOOK. Contra. Exiilanations. Deo, Trans- Sna- il, ray. portttt'n. ilr es. Prank Smith & Co. Bills Payable - - Transportation Bills Payable - - Discount - . - - BiUs Payable - - " 11 I Interest - • - Expense Transportation Bills Payable ■ Transportation Do. Do. Do. Merchandise In fall of accouDt - . A. Harvey i Go's Note - Freicht on J. Norris' i Cousigniiient Xo. 1. . Frank Smith A Go's note On D- McLachlan's Sight Draft W. J. Cowan's Note favor I of J. D. Davis - - - On above Note - . - Paid Porter - - . . Freight on J. Norris' Con- signment No. 2 • - . Wilson tl'Munro's accept- ance ; L.r. -/ 25138 170 76 11017 67 125 1500 00 14 Bills Payable Freight, ed C. A. | Fleming, Owen Sound ^ Freight on Sales Go. 2 - | Bought 500 bus. F.Wheat ' S3 8l.i8, Co. 2 - - - y Prepaid Notes due March 4ib ue:^i - • . . . 00 44 55 1077 3'J To be continued by Student. i ii 50 26 25 900 12500 3000 75,00 3000 50 00' 590 00 166 TUK VBACTXOAL BOOE-KEEPEB. Toronto, December 1st, 1882. Beoeived of W. H. Denuis, Barrie, Ont., Gash in full of account. (C. B.) 1st. Shipped D. McLachlan, Chatham, Ont., to be sold on our account and risk, (shipment to Chatham) merchandise, valued at $2000. (See Example 1, page 152.) (J.) 1st. Paid Frank Smith & Co., City, Gash in full of account, less 8%. (G. B.) 1st. Paid A. Harvey & Go's Note, due Oct 23rd last. Face of Note, Interest to date . Gave our cheque for amount. (G. B.) 2nd. Received of James Norris, St. Catharines, Ont., to be sold on his account and risk, 500 bbls. Family Flour. Paid freight in Cash, $125. (See Example 4, page 153.) (C. S. B. & C. B.) 2nd. Our Note favor of Frank Smith & Co., due this day, has been charged to our account by Bank of Commerce. (G. B.) 4th. Sold J. D. Laidlaw, City, for Cash, 200 bbls. Family Flour @ |5.75, {James Norris, Consignment.) (See Example 7, page 153.) (G. S. B. & G. B.) 4th. Made a sight draft on D. McLachlan, Chatham, Ont., for $600, and dis- counted same at Bank of Commerce, hero, discount \ %. Proceeds to our credit. (0. B.) 4th, Eeceived of W. Dunn, City, Cash to settle his accornt to dat3. (C. B.) 5th. Sold W. P. Howlaud & Co., City, 300 bbls. Family Flour @ $0.00 {J. Norris' Cousigumeut.) Eeceived in payment their note at 2 months, pay- able at Bank of Commerce, here. (See Example 7, page 153.) (0. S. B. & B. B.) 6th. Eeceived of W. Mitchell, City, Cash in full of account to date. (C. B.) 6th. Eeceived of W. H. Covert, City, Cash in full of account. (G. B.) 6th. Closed J. Norris' Consignment, and rendered him an account of sales. Our charges for Storage and Insurance,* $25. Commission 2 °/> on sales. Net proceeds to his credit. (See Example 10, page 154.) (C. S. B.) 6th. Gave our cheque to pay W. J. Cowan's Note favor of J. D. Davis, due the ■4th inst. Face of Note, . Interest, . (C.B.) *Let "Charges" Acoonnt represent Storage and Insurance. THE PBAOTICAL BOOK-KEEPEB. 167 6th. Paid Porter one week's salary. (C. B.) 7th. Received of D. Hoskins, City, Gash in full of account to date. (C. B.) 7th. Eeceived of James Norris, St. Catharines, (second Consignment) to be Bold on liis account and risk, 500 bbls. " Superior Extra" Flour. Paid freight in Cash, $125. (See Example 4, page 158.) (C. S. B. & C. B.) 7th. Accepted James Norris' (St. Catharines) draft, at 30 days, for $1000. (B. B.) 8th. Shipped Davis & Buie, ]\Iontreal, to be sold on our account and risk, (shipment to Montreal) Merchandise valued at $3,000. Paid insurance ia Cash $30, (See Example 1, page 152.) (J. & 0. B.) SlH. Keceived of Geo. Devine, City, Cash in full of account to date. (C. B.) 8th. Eeceived an account of sales of ^lercliandise shipped D. McLachlan, Chatham, Ont. Net proceeds to our ciodit, §2350. (J.) 9tu. Sold W. H. Knowlton & Co., City, for Cash, 500 bbls. "Superior Extra" Flour @ .'JG.50, (James Norris' Consignuieut No. 2.) (See Example 7, page 153.) (C. S. B. & C. B.) 9tu. Received of W. Smith, Yorkville, Cash in full of account. (C. B.) 9tu. Closed J. Norris' (second Consignment), and rendered an account of Sales, Storage and Insurance, '$30, Commission 2 % on sales. Net proceeds to his credit. (See Example 4, page 153.) (C. S. B.) Otu. Eeceived of R. E. Gallagher, Hamilton, to be sold on joint account and risk of himself and ourselves, each one-half, (Sales Co. 1), 1,000 bus. No. 1 Fall Wheat ^ §1.20. Paid transportation charges in Cash, §75. (See Example 13, page 155.) (C. S. B. & C. B.) 1)th. Gave our cheque to pay Wilson & Muuro's acceptance, due to-day. (C. B.) 9tu. Shipped C. A. Fleming, Owen Sound, to be sold on joint account and risk of Consignors and Consignee, each one-half, (Shipment Co. 1.) Merchandise valued at $8000. Paid Insurance and freight, per cheque, $30. (See Example 11, page 155.) (J. & C. B.) 11th. Sold W. P. Howland & Co., City, on 80 days, 500 bu& No. 1 Fall Wheat (^ $1.27. (Sales Co. 1.) (C. S. B.) 168 THB FIIAOTICAL BOOK-KEEPER. 11th. Eeceived of Edw. Trout, City, Cash to apply on account, $500. (0. B.) IIth. Closed Sales Co. 1, and rendered an account of sales of 500 bus. No. 1 Fall Wheat (500 bus. unsold.*) Our charges for Storage and Insurance, $1-1.25. Commission 2 % on sales. R. E. Gallagher's one-half net proceeds to his credit ; our net Loss. (See Example 18, page lo7.) (C. S. B.) 11th. Bougiit, for Cash, 500 bus. No. 1 Fall Wheat @ ,?1.18. (C. B.) 11th. Eeceived of D. McLnchlan, Chatham, Ont., to be sold on joint account and risk of himself and ourselves, each one-half, 1000 bus. Barley @ 65c. ; to which we have added 500 bus. No. 1 Fall Wheat @ $1.20 (Sales Co. 2.) Paid Trans- portation, $50. (See Examples 22 and 23, page 159.) (C. S. B. & C. B.) 12th. Sold W. Dunn, City, for Cash, 1000 bus. Barley (Sales Co. 2) @ 70o. (C. S. B. & 0. B.) 12th. Sold D. Iloskins, City, for Cash, 500 bus. No. I Fall wheat (Sales Co. 1) @ $1.28. (C. S. B. & C. B.) 13th. Closed Sales Co. 1, and rendered an account of Sales. Our charges for Storage, $7.50. Commission 2 % on Sales. R. E. Gallagher one-half net proceeds to his credit, our net Gain. (See Example 18, page 157.) (C. S. B.) 13th. , , Sold W. n. Covert, City, on account, 500 bus. No. I Fall Wheat @ $1.80, (Sales Co. 2.) (C. S. B.) Closed Sales Co. 2, and rendered an account of Sales. Our Charges for Storage and Insurance, $15. Commission 2 % on Sales. D. McLachlan's one- half net proceeds to his credit; our net Gain. (See Example 18, page 167.) (C. S. B.) 14:TH. Prepaid our Notes, due on March 4th next, discount for — days. Pro- ceeds paid by cheque. (C. 13.) 14th. Paid porter one week's salary. (C. B.) , • Uni. Made a sight draft on Davis & Buio, Montreal, and discounted it at Bank of Cominoice, here, lor $1000; discount J %. Proceeds to our credit. (C. B.) 15th. Prepaid Note favor F. Suiitli it Co., City, due March 5th next. Discount days ; proceeds paid by our cheque. (C. B.) *T<) mnke the Commissinn Sales balance enter on the credit side, in red ink, your half of the unsold goods, " Ly Inveutory," rule it oil and bring the balance down on Uebit side. THB FBAC'l'IUAL BOOK-£l!:ii.fKB. 169 ICth. We are advised by D. McLachlan, Chatham, Ont., that he has shipped Davis & Buie, Montreal, to be sold on joiut account and risk of Consignor, Consignees and ourselves, each one-third. Merchandise valued at $1800. (Shipment Co. ±) (J.) 15th. Prepaid Notes due January 7th, bth and 9th, next. Discount . Gave our cheque for proceeds. (C. 13.) IGra. Received of Davis & Buie, Montreal, an account of sales of shipment of the 8th inst. Netproceeds to our credit, $3189.75. (See Example 2, page 152.) (J.) 1 Gth. Bought of W. H. Covert, on account, 500 bbls. Family Flour @ $5.10. (C. B.) ItjTH. Received of C. A. Fleming, Owen Sound, to be sold on joint account and risk of Consignor, two-thirds; Consignee, one-sixth; and R. E. Gallagher, Hamilton, one-sixth ; 1000 bus. No. 1 Spring Wheat @ $1.80, to which we have added, to be sold on same conditions, 500 bbls. Family Flour @ $5.50, (Sales Co. 3.) Paid freight in Cash, $55. (C. S. B. & C. B.) 18th. Bought of J. K. Cameron, Parkdale, 1000 bus. No. 1 Fall Wheat @ $1.25. Gave in part payment, Cash $500. Balance to remain on account. (J. & C. B.) 18th. Received of C. A. Fleming, Owen Sound, an account of Sales of Goods shipped him on the 9th inst., (Shipment Co. 1) Net proceeds placed to our credit, $1G00. (See Example 2, page 152.) (3.) 18th. Sold D. Hoskins, City, for Cash, 500 bbls. Family Flour (Sales Co. 8) at $6.25 per bbl. (C. S. B. & C. B.) 19th, Shipped A. Manning, Kingston, Oat., to be sold on joint account and risk of ourselves. Consignee, and James Taskcr, Montreal, each one-third, 1000 bus. No. 1 Fall Wheat @ $1.30, (Shipment Co. 3.) Paid for Insurance in Cash, $U.20. (J. &C. B.) 19th. Sold W. Dunn, City, on account, 1000 bus. No. 1 Spring Wheat (Sales Co. 8) at $1.35. (C. S. B. & C. B.j 20Tn. Paid porter one week's salary. (C. B.) 20th. Closed Sales Co. 3, and rendered an account of Sales. Our charges for Storage and Insurance, $80. Commission 2 % on Sales. C. A. Fleming's two-third net proceeds ; R. E. Gallagher one-sixth net proceeds ; our one-sixth net Gain. (See Example 18, page 157.) (C. S. B.) 170 THE PRACTICAL BOOK-KEEPER, 21ST. With onr pormission, A. Manning, Kingston, has added to goods shipped him on 19th inst, (Shipment Go. 8) subjeot to same conditions; 500 bus. Barley at Guo. (J.) 21ST. Bought of W. Dunn, City, for Cash, 500 bus. No. 1 Fall Wheat @ §1.22. (C. B.) 21ST. Received of S. Neelon, St. Catharines, to be sold on joint account and risk of Consignor, Consignees, James Norris, St. Catharines, and R. E. Gallagher, Hamilton, each one-fourth; 1000 bbls. "Superior Extra" Flour @ $6.00 per bb),; to which we have added, to be sold on same conditions, 500 bus. No. 1 Fall Wheat @ $1.25. (Sales Co. 4). Paid transportation in Cash, $75. (0. S. B. &C. B.) 22nd. Prepaid A. Harvey & Co'a. Note, due Gth January next. Discount . Gave our cheque for proceeds. (C. B.) 22nd. Sold W. Muir, City, on account, 500 bus. No. 1 Fall Wheat @ $1.85. (Sales Co. 4). (C. S. B.) 28rd. Closod Sales Co. 4, and rendered an account of Sales of 500 bus. Fall Wheat (1000 bbls. Flour remaining unsold.) Our charges for Storage and Insurance, $10. Commission 2 % on sales. S. Neelon's one-fourth net proceeds to his credit ; J. Norris one-fourth net proceeds to his crelit; R. E. Gallagher's one-fourth net proceeds to his credit; our net Loss. (See Example 18, page 157.) (G. S. B.) 23rd. Sold W. Munro, City, on Note @ 2 mos.; 1000 bbla. "Superior Extra" Flour (Sales Go. 4) at §0.75. (G. S. B. & B. B.) 26th. Prepaid our Note in favor of Sugar Refining Co., Montreal, due 11th of March next. Discount ■ Gave Gash for proceeds. (G. B.) 26th. Paid the following Notes and acceptances, per cheque: Smith & Keighley's, due 24th inst. ; J. >Give Consignor's Journal entry upon receiving account of sales of above, net proceeds placed to his eieJit. upon •'"Give Consignee's Journal entry upon receiving a consignment of goods to bo sold on joint account of (Jonsignor and Consi^'iiee, each one-half, Consignee paying for freight. "•If above transaction were entered in the Commission Hales Book, and postwd thence to Ledger, what would the entry be ? •'••Give Consignee's Journal entry selling (Sales Co. 1) for Cash. "'•If above transaction were entered in the Commi>8i(m Hales Book, and posted thence to Ledger, what would the entry be? •'•Give Consignee's entry in Commission Sales Book upon closing " Sales Co." on which there has been a gain, •"Give Consignor's Journal entry, upon shipping goods to be sold on joint account, each one-half, towliich the Con- signee has added, to be sold on same conditions. • "Give Consignee's Journal entry for above transaction, after making the addition. ••'Give Consignee's entry in Commission Sales Book for above transaction. •••Give Consignor's Journal entry, upon shipping goods to be sold on joint ac- count and risk of himself, Consignee and Third party, each one-third. »««In case the Consignee, or Third party, or both, make an addition, what would the Consignor's .(ournal entry be ? •'•Give the Third party's Journal entry upon being informed that he has an equal interest in goods shipped to Consignee by Consignor. •'"In case the Consignee makes an addition to above, what would his (Third party) Journal entry be? »» 'In case he (Third party) makes an addi- tion to above, what would his journal entry be ? •■'"Give Consignee's Journal entry upon re- ceiving above (ii'Jo) from Consignor. ••"Give his (Consignee) Journal entry after he makes the addition. ••"Give his (Consignee) Journal entry after the Third party makes an addition. THE PRACTICAL nonK-KEBPEIl. 178 MONTHLY TRIAL BALANCE. upon NAME8 OF ACCOUNTH. Student D. M. Wilson - InturuRt and Uincnunt Bank of ('(inininrun HilU UoculvabUi - OBlco Furuituro J. 1). Davis - W. Ilimn - HillH l'ttyal)le W. llrnwn Frank Smith ecember 5th and 23rd, respectively, at 2 months. Discount off, • pro- ceeds received in Cash. 24th. Sight draft made on C. A. Fleming, Owen Sound, has been collected and placed to my credit, less i % for collection. (C. B.) 2Gth. Sight draft made on Davis & Buie, Montreal, has been collected and placed to my credit, less i % for collection. (Q. B.) 27Tn, Sight draft made on .James Tasker, Montreal, has been collected and placed to my credit, less \ / for collection. Paid one montli's rent, keeper, . Present Worth, $6080.52. 29th. - ; paid ono month's Salary to Book- 80th. NUMBER OF LINES FOR ACCOUNTS IN SEPTEMBER, OCTOBER NOVEMBER AM) DECEMBER. Stuclcnt, fi ; DM. Wil.on. ; Interest and Discount, 3u ; Bills Receivable, 18 ; Bills Pay- able, .^. ; Mei-ehancl.se, 15 ; Bank of Commerce, 8 ; Olliee Furniture. 15 ; W. Munro. 10 ; .1. I). ?o"';'o 4 r '?; ;^7-"''"'"'^''"^ Expense. .5: W. Brown, 10; Frank Smith & ^0 '•' V H C : ' ' • l '''""''''"•• '''''■ ^'^^I--'h'-^- 1'^ ; ^V. Mitchell, 15 ; Oeo. Devino. IranspoUat.on 10 ; Charges, 15 ; Connnission, 15 ; Other accounts fron. 5 to 8 lines Sales Book and Invoice Book in December, 8 pages each.