LIBRARY OF THE University of California. ^iA'-vCrO-L. ^^ry^yy^.... Class 'OjuJ-^^ ) • • '^SrSfSr'^'^ jf'^^'^'^ "^' •-> 'sU -nU >sU 'sU ^ n U -j^ -si^ •jy 'IK -i^ -^ ^^ .^ .^ .^ ^ ^ ^ ^^ ^ ^ ^ ^ Jp--;PTcr Jfv. Jf^ Jfv, -^/Ti ' 'j Book * t Class ■\-» I f Jy Accession No,Af~d.0.ii. / i I W^MSm'TM,M I Xjx :^ x^ .^^ n -^r GIFT OF -)f ^ iL JH 1 ' ?r*: Digitized by the Internet Archive in 2007 with funding from IVlicrosoft Corporation http://www.archive.org/details/completesystemofOOharrrich % COMPLETE SYSTEM OF PRACTICAL BOOK-KEEPING. EXEMPLIFIED IN SIX SETS OF BOOKS : JOURNALIZED DAILY, WEEKLY, AND MONTHLY; BY SINGLE AND DOUBLE ENTBY.- APPLICABLE TO ALL KINDS OF BUSINESS, BOTH INDIVIDUAL AND PARTNERSHIP CONCERNS. ACCOMPANIED WITH THE VARIOUS FORMS OF BILLS, MERCANTILE LETTERS, ETC, IN DAILY USE IN THE COUNTING ROOM. AN INTEREST AND TIME TABLE; ALSO, A SERIES OF CONCISE RULES FOR PERFOUMINO VARIOUS COMPUTATIONS IN BUSINESS. Designed for the Counting House and ScJiools. BY NICHOLAS HARRIS, A. M. PRINCIPAL OF THE HARTFORD COMMERCIAL ACADEMY. * THIRD EDITION. HARTFORD. BROWN AND PARSONS. p. J. HUNTINGTON AND CO., NEW-YORK. W. MARSHALL AND CO., PHILADELPHIA. 1841. < Entered according to Act ofCoiigrcss, in the year 1839, by NICHOLAS IIA11UI». In Jhe Clerk's Office of tlie District Court of Connecticut. Stertotyped by Richard H. Hobbs. Printed by CASE, TIFFANY, & Co. Hartforb, Conn. INTRODUCTION. The major part of young men in our country, are, to some extent, accountants ; and if required to keep accounts at all, they should be able to do it in a manner intelligible to themselves and to others. While almost every branch of education is thoroughly taught in our schools and colleges, the commercial education of young men is almost, or quite neglected ; and this too, when many youth enter those institu- tions vi^ith the design of following mercantile pursuits after they are graduated. Indeed, no class of individuals has had less helps to qualify themselves for their business previously to entering upon it, than mer- chant's clerks. Every business man should be entirely acquainted with the princi- ples of Double-Entry, that he may classify and conduct his accounts in such a manner as will disclose to himself and to others, (if need be) the true state of his affairs. By Single-Entry, the merchant cannot trace out the changes through which his property has passed ; and though he may, by picking up the odds and ends, ascertain what his property is worth, he is, nevertheless, unable to tell on what branches of his business, (if it is extensive) he has realized his gains. For a person who is receiving money for rents, for dividends on stocks, for freight of ships, and for merchandise, it is important that he keep an account with each of these branches of his business, that he may know what part of his property nets him the most per cent. With such in- formation before the mind, the judicious will withdraw his capital from the unproductive, and invest it more in the productive branches of his business. x\nd hence the necessity of separate accounts with ships^ cotton, flour, real-estate, &c. By previous preparation, it is evident that young men may engage in mercantile pursuits with many advantages ; and it is therefore highly important that they have access to a work on the science of accounts, so systemized, so simple, and still so comprehensive, as to give all requisite information The author would not say, or even insinuate, that there are not ably written works on this subject, or claim an excess of originality in the arrangement or matter of this ; yet it being the re- sult of much experience and study, he hopes it embodies as many merits, at least, as any Book-keeping in print. By carefully noticing the questions of his pupils, the author has been able to learn on what points the most difficulty is encountered, and has consequently dwelt upon those parts more minutely. 111834 4 INTRODUCTION. The first set of books in Single-Entry, is arranged in the simplest form possible, showing merely the Day-Book entries, and the transac- tions there recorded, posted to the Ledger. The second set, supposes the merchant to begin business with a given capital, to continue the same for three months, when the Balance- sheet is taken, and a statement of affairs made out. There is a new Ledger made from the old one, with all the balances ctirned forward. In Part L, there is also a great variety of forms of letters, bills, &c., with the Statute-Laws regulating the damages on protested bills, &c., explained. In Part IL, the theory and practice of Double-Entry is introduced and exemplified in four sets of books, with Trial-Balances, Balance- sheets, the method of taking them, &;c., fully explained. The first set records the business of one person during one month, where all the cash and other transactions are found on the Day-Book, which is the simplest form of keeping accounts by Double-Entry. At the close of the month the business closes, the Balance-sheet is taken, and the accounts are equilibrated. Set II., records the retail business of one individual for four weeks, in which the transactions are journalized once a week, and posted to the Ledger accordingly. The small cash sales made through the week, are entered at the close of each week, in one sum, which is done on Saturday night, when the cash is balanced. This is a safe and judi- cious plan for the retailer to adopt in keeping his accounts. Set III., records a partnership business, of three individuals continued four months. This set has a Cash-Book, on which all the cash trans- actions are entered, and from which each sum is posted to the Ledger. There is connected with the same, a Private-Ledger, aside from the one in daily use, which i€ kept by the partners, and which shows how much each partner has invested in the business, the sum which each has withdrawn from the concern, and finally, how much has been the net gain or loss on the business, when a statement of affairs was made. It is not designed to make this work an Arithmetic, or a substitute for one ; yet it is deemed exceedingly important that a few concise rules for performing various computations in business, with suitable ex- amples, be annexed. They have accordingly been entered, with other important information, in the third Part. There will be found immediately after the Bill-Book, Set III., a variety of original entries, in the form of a Day-Book, which advanced classes may write into Blank-Books, journalize, and post. The Trial and Bal- ance-sheets will be found in connection with the Day-Book. A valuable Time and Interest Table, with a Dictionary of Commer- cial terms, &c., will be found in the third Part. ADVERTISEMENT TO THE STEREOTYPE EDITION. The favorable reception which the former edition of this work has found in the mercantile community, and its introduction into many- Academies and Schools through the States, have induced the author to carefully revise, correct, enlarge, and prepare for the press, the present edition. In the arrangement of this, every thing particularly important in the first edition is retained, with decided improvements in the mode of journalizing and ruling the books, which, more than any thing else, lessen the labor of the Book-keeper. There will also be found, in addition, another set of books, Set I., by Double-Entry, entirely changed from the former ; many new exam- ples for making Journal-entries ; the Statute-Laws of the different States, regulating the damages and interest on protested bills ; a condensed and valuable Interest Table ; a Time Table, -and a Table showing the weight and value of gold coins, fixed by the Acts of Congress in 1834. In consequence of the importance which the study of Book-keeping is assuming in all good schools, particular regard has been had to adapt the arrangement and matter of the whole book to the convenience of teachers, to the wants of classes, and to facilitate individual instruc- tion. THE AUTHOR. CONTENTS, Page. PART I. Introduction, : : 3 Hints to Teachers, "7 Questions on Book-keeping, ... 9 Books, Set I., Single-Entry, ... 14 Books, Set II., Single-Entry and Bal- ance-sheet, 19 Ledger B., Single-Entry, ... 38 Check-Book, 41 Account Sales-Book, ..... 42 Account Current-Book, .... 43 Book of Shipments, 44 Invoice-Book, 45 Letter-Book, .46 Questions on foreign and inland Bills, 51 Forms of Due-Bills, Receipts, Notes, Bills of Exchange, &c. ... 56 Statute Laws of the States in regard to damages on Protested Bills, . . 60 Form of Protest, act of honor, Power of Attorney, Lease, Bill of Sale, Bond, Mortgage, &c., from . 63 to 68 PART II. Remarks on Book-keeping by Double- Entry, 71 Rules for Journalizing, .... 73 Questions on Journalizing and general rules, 78 Questions on the nature and design of Ledger-Accounts, 79 Duties on Imported Goods, ... 84 Company-Accounts — Company A, . 86 Rules for Opening Books, ... 88 Introductory Exercise, 95 Books, Set I., Double-Entry, . . .100 To open and close a set of Books, . 110 Page Trial-Balance, general directions for taking it, -.119 Profit and Loss-sheet, general direc- tions to make it, 121 Balance-sheet, general directions to make it, 124 Directions to equilibrate accounts, . 128 Rules to Journalize weekly, . . .132 Books, Set II, 136 Weekly Journal, 144 Balance-sheets,. 154 Copartnership of three indivkluals, . 155 Contract of Copartnership, . . . 156 Books, Set III— Cash and Day-Books, 158 Daily Journal, Set III., 168 Monthly Journal, Set III., . . . .176 Inventory, Set III., 180 Monthly Trial-Balances, Set III., 194 Balance-Sheet, Set III., . . . ,196 Private-Ledger, Set III., . . . .198 Bill-Book, Set III., 200 Books, Set IV., and Balances, . . 203 Method of keeping Bank-Books, . . 205 British Stocks, 208 Interest Tables, 211 Tables of Gold Coins, 214 Pound Sterling, 315 Time Table, 216 Equating Time of Payments, . . 217 Equation of Dividends, .... 222 Loss and Gain, ....... 222 Cubic Measure, 224 Draft and Tare, 220 Commercial Dictionary, .... 227 Prospectus of School, 231 Testimonials, 232 HINTS TO TEACHERS. As the design of those who pursue the study of Book-keeping is to make it useful to themselves in actual business, or in teaching it to others, it is highly important that they begin with the^r^^ principles. Individual instruction is generally preferable to teaching in classes, but as that method is not practicable in ordinary schools, classes must necessarily be formed, and consequently such a course must be pursued by the teacher as will best meet the wants of the whole. To the classes, the teacher should explain the object of Book-keeping, the importance of keeping accounts systematically and correctly — should tell them that ignorance on this subject is generally the cause of insolvency among business men, and that no portion of a business man's time is more pro- fitably spent than that bestowed upon his books — that this science is im- portant, not only to the merchant, the lawyer, and the physician, but is a great accomplishment to any class of individuals ; that the theory is beautiful, and the practice useful, and that both may be acquired under a competent instructor, sooner than in any other situation. The teacher should also illustrate the peculiarities of Double and Single-Entry Book- keeping ; in what the difference between the two methods consists, and the decided preference which the former has over the latter. Such, and similar suggestions, usually awaken in the mind of the learner an interest, which, in this, as in other branches of education, is indispensa- ble to success. The questions and answers on pages, 9, 10, and 11, may now be studied and recited to the teacher, after which he may suppose pur- chases and sales of goods, and show his class how he would record such transactions on the Day-Book — what accounts would necessarily be opened in the Ledger, in order to post those Day-Book entries, and how such accounts should be closed, when payment is made. The class should be made familiar with the language in which any business transaction is recorded, remembering that conciseness and perspicuity are highly important in making the original entries. This familiarity may be acquired by recording a variety of business trans- actions, on the black-board or blank-books, by the pupil, and the cor- rection be made by the teacher. The Day-Books, Set I. and II., Single-Entry, may now be copied, if deemed expedient by the teacher, into blank-books, and afterward posted and the accounts balanced. It will not be well to dwell longer upon the process of Single-Entry, but pursue the principles and prac- tices of Double-Entry ; for a competent knowledge of the latter, implies an understanding of the former, except some few particulars. The class may now take lessons to advantage in Part II., and be care- fully drilled on the explanation of the Ledger-Accounts (pages 79 to 8 HINTS TO TEACHERS. 86,) the method of journalizing (pages 71 to 78,) the process of open- ing books (pages 88 to 96,) and all the matter preceding Books, Set I., ou which pertinent questions will be found. Too much stress cannot be laid upon the importance of understanding the object of the accounts in the Ledger, for on the arrangement of this Book are deduced the principles of journalizing. Hence the folly of making a Ledger under the direction of a series of arbitrary rules. I have never known a person become a practical Book-keeper, who would use keys and such nonsense. The instruction in a school should cor- respond as nearly as possible to that given in a counting-house, and what merchant would be so foolish as to teach his clerk to keep books by the direction of arbitrary rules ! The supposed transactions beginning on page 73, and concluded on page 78, may be given to a class, for several lessons, to be written out in a narrative style, full and concise, on loose paper or slate. When the class comes together, each may be required to read aloud the record as he has it, after which, if necessary, they may be corrected, punctuated, and in some cases journalized and posted. The learner should at least tell how to do the same. The writer finds such a course highly use- ful in teaching Book-keeping. Day-Book, Set L, (page 101) may now be copied into blank-books, which the class may rule with red or black ink, (if they have not books ready ruled) ruling the lines in the same way as found in i\ie printed hook. After copying the Day-Book, the learner may journalize the same on a slate or sheet of paper, referring to the explanation of Ledger- Ac- counts, beginning on page 79 for rules to make the Journal-entries. The Journal-entries made as directed, may now be examined by the teacher, or compared with the printed Journal, and if con-ect, they may be written out on the ruled, blank Journal. It is not so important that the learner make the Journal-entries inde- pendently, (although that is, in most cases well,) as to understand the principles, and give a reason for journalizing the transactions one way rather than another. The sooner the principles involved are compre- hended, the better, as the pupil may now give his time to acquiring a facility, correctness and neatness in writing up his books ; which is the practical part oi^odk-kee'^iwg, and which is generally the g and deside- ratum. The class should, before going further, be carefully questioned on the principles of making Journal-entries, posting &c. The name of every person and thing, which is found on the Journal, must be written in the Ledger, in large hand, to which, under their respective heads, all the sums must be transferred, or posted. The Trial-Balance, the Profit and Loss, and Balance-sheets, may be successively made out according to the directions given on pages 119 to 127, which are full and lucid. Each of the accounts in the Ledger may now be added and equili- brated as per directions. The learner will derive great advantage from writing out the several sets of books, in so far as it gives him not only the theory, but the practice of keeping accounts, and soon familiarizes him with the whole process of opening, conducting, and closing books. BOOK-KEEPING QUESTIONS AND ANSWERS. 1 . What is meant by Book-keeping ? Book-keeping is the art of recording transactions in trade, in a concise and perspicuous manner, so as to show the sum and all parts of the merchant's property. 2. Is there more than one method of keeping accounts ? There are two methods ; one by Single and the other by Double-Entry. 3. What is the distinction between the two ? In Single-Entry, the item recorded in the Day-Book, is entered but once in the Ledger. EXAMPLE. Should I sell John Brown, on account, goods amounting to $100, I should first record it on the Day-Book, and then post (or place) $100 to the Dr. or left hand side of John Brown's account in the Ledger. Hence, Single-Entry. In Double-Entry, each sum is entered in the Ledger, at two or more accounts. EXAMPLE. If I sell John Brown merchandise on account, amounting to $100, I post the $100 to the Dr. or left hand side of John Brown's account, also $100 on the Cr. or right hand side of the merchan- dise account, in the Ledger. Hence, Double-Entry. 4. Which plan is best adapted to a small business ? Single-Entry is commonly preferred for a small business, as it saves some writing, especially if it be a retail business; yet eve- 2 10 BOOK-KEEPING. ry departure of the merchant from Double-Entry, will produce .uncertainty in his affairs. The method of Single-Entry being the more simple, will occupy the first part of this treatise. 5. What is the ultimate design in recording transactions in trade ? That the merchant may at any time ascertain his gain or loss on business, and in what his property consists. 6. In Single-Entry, what Books are necessary to accomplish that end ? The Day-Book, in the beginning of which is to be recorded a minute and concise statement of the Merchant's or Tradesman's affairs when he commences business ; a history of his debts and effects, and afterward a record of what individuals have bought or received of the Merchant, and of what the Merchant has bought or received of individuals on account. The Ledger, in which the Merchant, devoting one page to each person with whom he has transactions in trade, and writing his name in large round hand at the top of the page, posts to the Dr. side, all sums which the individual owes him, and on the Cr. side posts all sums which he has had of the individual, on account. In addition to the above Books, may be introduced the Journal, Cash-Book, Bill-Book, Book of Shipments, Account-Current- Book, Letter-Book and Invoice-Book, depending much on the na- ture of the business. When the Journal is used, it is only a neat- er and more concise form of the Day-Book, and instead of posting from the Day-Book, the items are taken from the Journal, to the Ledger. 7. Is it essential in what order the accounts are opened in the Ledger ? The stock account should appear on the first page, after which, the order is not important in Single-Entry. 8. Having the accounts opened on the Ledger, (with one or two on a page, as may be expedient) how does the Book-keeper next proceed 1 He posts the accounts ; which is simply collecting the items of each account, as they have been recorded in the Day-Book or Journal, and placing the same under their respective heads, in order to show the state of each account, after these entries are posted. QUESTIONS AND ANSWERS. 11 9. Is it necessary to have any reference figures, from the Ledger to the Journal, and vice versa ? It is frequently important to refer from one Book to the other, and to facilitate the matter, the folio of the Ledger where the entry is made, is placed in the marginal column of the Journal ; and in the Ledger, the folio of the Journal whence the item was taken. See Journal and Ledger, Set 1st., Double-Entry. When the Ledger is made from the Day-Book, reference figures must be placed on the Day-Book and Ledger. 10. Does any business require more than one Ledger ? Manufacturers frequently keep, besides the principal Ledger, a Petty-Ledger, on which they enter the names of their workmen, to whom they are paying small sums of money, or to whom they are trusting stock, and from which they transfer the total of cash, merchandise, &c. to the principal Ledger. This method keeps the large Ledger neater, saves labor in taking the Trial-Bal- ance, &c. 1 1 . When is an account said to be closed, and when equilibra- ted or balanced ? In adding two sides of an account, when the one side is equal to the other, the account is said to be closed ; when the sides are unequal, requiring on the smaller side, the diiference to make it equal, the account is said to be equilibrated. 12. Why and how are Books compared ? The design of comparing Books is to ascertain whether the items have been correctly transferred from the Journal to the Ledger ; and this is the best accomplished, by one person reading the folio of the Ledger from the Journal, giving the amount, date, &c. while another turns to that account in the Ledger, and find- ing it correctly posted, marks it with a dot, thus . 13. Should errors be found in posting, how are they correc- ted ? When an item has been overlooked, carry it to its proper ac- count as Sv>o)i ; s discovered, placing on the margin an x where the item is posted, and another where it should have been posted. When an item is carried to wrong account, place the same amount on the opposite side by or to error, with an x against each, on the margin — so when a wrong sum has been posted, or when carried to the wrong side of an account. REMARKS. The following short set of Books, the Day-Book and Ledger, exhibits the simplest form of keeping accounts which can be adop- ted, where any degree of accuracy is required. It may answer for a farmer or mechanic who has but little occasion to record his business transactions, but if the business is at all important the 2nd. set of books should have the preference. It will be seen that the Stock, Cash and other accounts, are not opened in this Ledger, and only the names of the persons who are trusted appear. There are some individuals who keep a Day- Book or a Ledger alone, but a man's business must be very small to require only one book to record it. When a person becomes indebted to the owner of the Books, for goods, for labour, or for any cause, the owner of the Books makes record of the same on his Day-Book, and then writes the person's name in the Ledger, under the Dr. side of which, he writes the amount which the person owes him. When the person pays any thing, the owner of the Books posts or writes the sum which he receives of the person under the Cr. side of his account. Thus the diiference between the Dr. and Cr. column shows how much one owes the other. If the Dr. side is the largest, the balance is in favor of the owner of the Books ; and vice versa. DAY-BOOK AND LEDGER, Set I. SINGLE-ENTRY. DAY-BOOK SET I. 15 Hartford, January 1, 1838. Jan. 1 Joseph Carter Dr To 12 pounds of Sugar, . . . -Q) 9 cts. John Woodbridge, . . To 16 pounds of Coffee, To 9 " " Sugar . Dr 11 cts. Joseph Carter, Cr. By one day's labour, John Spring, . Dr, To 1 load of Wood, ....... Judah Brown, Dr. To 1 piece Cotton Goods 20 yds. ^ 20 cts, 1 pair thick Boots, , John Woodbridge, To Shoeing Horse, . . " Setting Waggon Tire, Dr, Joseph Carter, . . . To 2 Bushels of Com, « 4 " " Oats, Dr. 75 cts. 34 cts. John Woodbridge, Cr. By Cash, 08 76 72 48 00 50 00 00 00 00 00 00 86 250 16 DAY-BOOK SET I. Hartford, January \st^ 1838. Elijah Sharpe, Dr. To 8 galls. Molasses, . . . . -S) 30 cts. '« 1 bbl. of Apples, Judah Se3Tiiou];, ....... Dr. To 1 pair of Pants, " 1 Vest Elijah Sharpe, Dr. To 4 reams of Paper, . . . . -Q) 4,00 Judah Brown, Cr. By Cash, John Woodbridge, Dr. To 1 Hat 1838. Jan. 4 40 50 00 00 90 22 16 00 00 00 50 LEDGER SET I. 17 Hartford, January 1, 1838. Dr, Joseph Carter, Cr. 1838 Jan. To Sugar, To Grain, Jan. 2 By Labor, It will be seen that Joseph Carter has purchased Goods at two different times, amounting to $3 94, and has paid in labor $1 00, leaving him in debt (o the owner of the Books $2 94. Dr. John Woodbridge, Cr. Jan. To Sundries, To Labor, . To Hat, . . Jan. 3 By Cash, 50 The Dr. column of this account shows that J. Woodbridge owes the owner of the Books $10 98, and the Cr. side shows that he has paid $2 50, leaving a balance against Woodbridge of 8 48. Dr. John Spring, Cr. 1838 Jan. 2 To Wood, J. Spring is indebted $3 50 to the owner of the Books, and when he pays the whole or apart of the same, his account will be credited for the sum he pays. 18 LEDGER — SET I. Hartford, January 1, 1838. Dr. JuDAH Brown, Cr. Jan. 2 To Sundries, 00 Jan. 6 By Cash 6 00 Judah Brown has purchased to the amount of $6 00, which he afterward pays ; conse- quently the account has the same sum on each side, and is closed. When an account is set- tled, the Dr. and Cr. side must be equal. ■ Dr. Elijah Sharpe, Cr. Jan. 4 To Sundries, To Paper, . Dr. JuDAH Seymour, Cr. Jan. 4 To Clothing, Note. These accounts are not equilibrated, as in the next Ledger ; for the object here is to show the-mode of posting, rather than of equilibrating the accounts. PETTY CASH-BOOK, SINGLE-ENTRY. REMARKS ON THE SUCCEEDING SET OF BOOKS. L The succeeding set of Books 'shows a simple method of keeping accounts by Single-Entry, which may be adopted by individuals doing a small or retail business. In connection with the Day-Book, on which are recorded all the transactions except the daily sales, is a Cash-Book, called generally the Petty C ash-Book, in the Dr. column of which are entered the amounts of money taken through the day for goods sold, and in the Cr. column all sums paid for postage, cartage, clerk-hire, &c. the balance of which is carried to the Day-Book, weekly, and called " Sales this week." 2. The form of the Petty Cash-Book, as kept by the Merchant for the first two weeks, is given, showing the plan on which the accounts were kept during the three months. The cash transactions are recorded on the Day-Book, as if no Principal Cash-Book were kept. The form of such Cash-Book, nowever, is given, which may be used if desirable, and when tised, the sums of Cash received must be entered on the Dr. page, td the sums paid away entered on the Cr. page, so the difference tween the Dr. and Cr. column will be the amount of cash on Jiand. When such Cash-Book is used, the cash transactions do hot appear on both Cash and Day-Book, as in Set 2, but only on the Cash-Book. PETTY CASH-BOOK SET II. 21 Hartford, January 1, 1838. 1838. Dr. Cr. Jan. 2 To Merchandise, . sales this day. . . 95 00 « 3 By Coal, .... paid H. Brainar To Merchandise, . sales this day, . . 91 00 9 00 " 4 a u u it <( . . 125 00 " 5 By Stationer}', . . pr. receipt, . To Merchandise, . sales this day. . . 80 00 5 00 " 6 By Postage, ... 5 Letters, To Merchandise, . sales this day, '. ! 124 00 1 00 Balance entered Cash-Book^ page 1 500 00 / 515 00 515 00 Jan. 8 To Merchandise, . sales this day. . 70 00 " 9 By charges on goods, pr. Bunker Hill, To Merchandise, . sales this day. . ! 60 00 10 00 o o By Postage, ... 3 Letters, To Merchandise, . sales this day. .* 80 00 50 " 12 By Board, &c. . . pr. receipt, . To Merchandise, . sales this day. '. 50 00 20 00 " 13 By Porterage, . . on goods. To Merchandise, . sales this day. . 75 00 4 50 Balance entered Cask-Book, page 1 . 300 00 ' ' 335 00 335 00 CASH AND DAY-BOOK, Set II. SINGLE-ENTRY. D. BOND. 24 CASH-BOOK SET Tl Dr. Hartford, January 1, 1838. 1838. Jan. 1 " 6 '• 13 " 20 " 26 " 28 Feb. To Stock, ** Merchandise, se, . . sales this week, , (( (( (( u u u n (( (( u " *' ilai r. 1 u 10 (( 12 ii 15 u 18 (( 29 li u (( 30 (( 31 To Balance, . . . " Merchandise, . . « I. M. Hall, . \ '. " Reynolds & Morris, " Merchandise, . . from last month, sales this week, a li a on ciccount, (( li sales this week. To Balance, . . . from last month " Wm. H. Imlay, . . on account, " Merchandise, . . sales this week " Reynolds & Morris, on account, " H. L. Miller & Co., « " " Wm.H. Imlay, . . " " " Merchandise, . . sales this week, " Reynolds & Morris, on account, " Charles Sheldon, . " " . 100000 50000 30000 175 25 45000 300 00 2725 2595 700 300 75 100 800 700 25 25 00 00 00 00 00 00 527025 3740 50 25 00 70000 5000 100000 12 00 80000 350 150 6852 25 CASH-BOOK SET II. 25 Hartford, January 1, 1838. Cr. 1838 I Jan. 8 By Charles Sheldon " 31 on account, " John Reed, . . . . " " " Balance, to next month, Feb. 14 " 16 " 28 Mar. 1 " 8 " 13 " 31 By Stewart & Co., " Bills Payable, " Balance, . . on account, . . J. Olmsted & Co., to next month, . 2725 25 10000 3000 259525 50 1480 374025 By Bills Payable, . " J. Olmsted & Co. " Balance, . . Stewart & Co., on account. 5270 100 500 300 5952 00 00 25 00 00 00 25 6852 25 26 SINGLE-ENTRY §ET II. 1 Hartford, January 1, 1838. 1838 Jan. 1 3 5 6 6 8 10 12 13 Have on hand, commencing business, Cash, 1 000 6,000 304 16 416 500 100 6 30 300 00 50 00 00 00 75 00 00 Merchandise, . 5,000 Bought of Charles Sheldon, 2 pieces Cloth, 42 yds., blue, -S) 5 00 . 210 1 " " 21 " black, -0)4 50 . 94 50 Bought of Jolin Olmsted & Co., 16 yds. Carpeting, .... -8) 1 00 . . Sold Catlin & Co., 20 pieces Linen, 500 yds. ^ ,83 1-3 . . . Cash sales of Merchandise, this week, . . . Paid Charles Sheldon, Cash on account, . . Sold Wm. H. Imlay, 1 piece Muslin, 9 yds. . . -O) ,75 . ' . . Sold H. L. Miller & Co., 4 pieces Cambric, 60 yds. . -0) ,50 . . . Cash sales of Merchandise, this week, . . . SINGLE-ENTRY — SET II. 27 Hartford, January 15, 1838. 1838 Jan. 15 17 20 22 24 26 27 30 31 Catlin &L, Co. have accepted my draft on them at 10 days sight, due Jan. 27, for .... Sold I. M. Hall, 3 pieces quilting, 42 yds. -8)100 . 42 00 " " S. Cloth, 20 " . -a 5 00 . 100 00 Cash sales of Merchandise this week, Bought of Stewart & Co., New- York, 6 pieces Silk, 200 yds. . -S) 1 00 200 00 11 « Cambric, 200 yds. -8) 20. 40 00 Sold H. L. Miller & Co., 4 pieces S. fine Cloth, 84 yds. tD 4 00 Cash sales of Merchandise this week. Received payment of CatUn & Co., for Bill, in Cash, Accepted Stewart & Co's. Draft on me, at 30 days, payable, March 1st, for .... Paid J. Reed, Cash on account, 30000 142 00 17525 24000 336 450 300 20000 3000 00 00 00 > ^ 'i J- 28 SINGLE-ENTRY SET II. - V ■ yr^ <; [^-iC*** # Hartford, Jarmary 31, 1838. 1838 Jan 31 Feb. 1 Sold Reynolds & Morris, Springfield, 6 pieces Ginghams, 168 yds. ti) 25, 42 00 1 piece S. fine Cloth, 22 " S) 6 00, 132 00 4 pieces Cassimer, 120 " -0) 2 00, 240 00 February. Bought of Stewart &d Co. 1 piece Silk, 75 yds. 1 00 Sold I. M. Hall, 1 piece Silk, 50 yds. . 1 50 10 Bought of John Olmsted & Co., lpieceS.F.Cloth,100yds.O10 00, 1,000 00 2 pieces Cambric, 200 " ^ 40, 80 00 4 " snk, 400 " n 1 00, 400 00 414 00 75 00 Cash sales of Merchandise, this week, Sold H. L. Miller & Co., 1 piece Broadcloth, 50 yds. U 12 00 Accepted John Olmsted & Co.'s Draft on me, at 30 days, for 11 Sold Rejniolds & Morris, 1 piece S. fine Cloth, 40 yds. -0) 6 00 7500 1,480 700 600 00 00 00 1,480 00 24000 SINGLE-ENTRY SET 11. 29 Hartford, February 12, 1838. 1838 Feb. 12 12 13 Bought of Stewart & Co., 1 piece Silk, 50 yds. . '9) 1 00 1 " Cambric, 100 yds. -S) 50 50 00 50 00 Cash sales of Merchandise, this week, . . 14 14 16 Sold I. M. Hall, 3 pieces Linen, 100 yds. -Q) 2 00 1 piece Silk, 50 " ^ 2 00 200 00 100 00 Paid Stewart & Co., Cash on account, 100 300 Received from J. M. Hall, Cash on account. Paid John Olmsted & Co.'s Draft on me, 17 18 Received from Reynolds & Morris, Cash on ac- count, 00 00 300 00 50 75 00 00 s://. d.i^ 1,480 00 18 Sold H. L. Miller & Co., 1 piece S.F. Cloth, 100 yds. -0)1 2 00 1,200 00 1 " Cambric, 50 " ^ 50 25 00 100 00 4 'r^ Accepted Stewart i^j^. 1838 Feb. 19 r 20 ^^. 21 ^: 25 27 28 Mar. 1 Cash sales of Merchandise, this week, Sold Reynolds & Morris, 1 piece of Silk, 50 yds. © 2 00 100 00 1 ." S. F. Broadcloth, .... 300 00 Bought of Stewart & Co. 2 pieces Silk, 200 yds. '&} 1 00 200 00 5 " Cambric, 600 yds. -8) 50 300 00 Accepted Stewan & Co.'s Draft on me, due March 8th. Bought of John Olmsted & Co., 100 yds. Carpeting, . . f?) 2 00 80000 40000 500 500 •00 Cash sales of Merchandise, this week, . . 700 Li^^ March. Paid Stewart & Co.'s Bill on me. Sold Charles Sheldon, 50 yds. Carpeting, f() 2 00 Sold Wm. H. Imlay, 1 piece Linen, 25 yds. ^2 00 100 00 00 00 00 00 10000 50 00 SINGLE-ENTRY — SET II, 31 Hartford, March 6, 1838. 1838 Mar. 6 10 12 13 15 18 20 Bought of H. L. Miller, & Co., . 1 case Broadcloth, 100 yards, ® 5 00 Bought of John Olmsted & Co., 10 yards Broadcloth, . . . -Q) 7 00 70 00 IVest, 3 00 1 piece Carpeting, 75 yds. . -8) 2 00 150 00 Paid Stewart & Co.'s Bill on me. Received from Wm. H. Imlay, Cash, on account Cash sales of Merchandise, this week, Paid John Olmsted & Co., Cash, on account. Received from Rejmolds & Morris, Cash, on ac count Received from H. L. Miller & Co., Cash,- on account, Sold Charles Sheldon, 5 yards Broadcloth, . Q) 10 00 50000 223 500 50 700 300 50 1,00000 50 00 00 00 00 00 00 00 ^X^.C^^v ''{^ fC M % CQi^ f ^ ' \ 32 SINGLE-ENTRY SET II. Hartford, March 25, 1838. 7^ -^^j;^ 1838 Mar. 25 28 Sold H. L. Miner & Co., 1 piece Carpeting, 100 yds. '0) 3 00 . . cp:.f ;2. t^ie^-^ 29 29 30 ^ New-Orleans. \ Gentlemen, Annexed, you have an invoice of Cloths, per the Ocean, Capt. Johnson, Master, amounting to $4120,50, to be sold on our account. As the Cloths v^^ere manufactured from v^ool of a superior quality, and in a manufactory second to none in the country, we anticipate a ready disposal of the consignment. We are confident that no pains will be spared on your part, to effect advantageous sales, knowing that further consignments from us will depend upon the result of the present. We are, Gentlemen, N Yours respectfully, H. H. & Co. Messrs. Hanks, Harris & Co. Hartford. LETTER-BOOK. 47 WITH ACCOUNT OF SALES. New-Orleans, Aug. 20th, 1837. Gentlemen J We lose no time in furnishing you with an account of sales of Cloths, per the Ocean, net proceeds amounting to $5500,00. We take the liberty to send you, for the above amount, our Draft, at 20 days sight, on P. W. & King, New-York. Your consignment reached us in good time ; there being but few superior woollens in the market at wholesale, we were able to dispose of them at a price, which, we trust, will prove highly satisfactory to yourselves. Rest assured, that any business with which you may be pleased to intrust us, will receive due atten- tion. In the mean time, subscribing ourselves Your ob't servants, Brown 6c Co- Hartford, July 2nd, 1837. Messrs. J. Hart & Co., ) New-York. \ Gentlemen, Please ship for us, per the first vessel bound for Hartford, 488bbls. of superior Flour, at $10,00 per bbl., delivered, as per your last advices. You can draw upon us at 10 days sight, for the above amount, payable at the Phoenix Bank, or otherwise, as may,be most agree- able to yourselves, assuring you in either case your Draft shall be honored. We are, Gentlemen, Yours respectfully, H. H. & Co. New- York, 7tli July, 1837. Messrs. Hanks, Harris &. Co., ) Hartford. \ Gentlemen^ Agreeable to your favor of the second, we have shipped for your account and risk, on board the Hero, Captain Sans, Master, for Hartford, 488 bbls. Flour, at $10,00 delivered, amounting as 48 LETTER-BOOK. per Invoice, to $4880, which we have placed to your debit. Waiting further orders, We remain, Gentlemen, Your's truly, J. Hart & Co. Messrs. John Howard & Co.. New-York. GETTING ACCEPTANCE. Hartfori,, July 8th, 1837. Gentlemen, Please do the favor of procuring acceptance on the inclosed Draft for $1,000, at 10 days sight, on St. Johns & Co., Pearl-st., and retain the same in your possession till maturity, at which time you can pay the amount to Warriner & Birch, on our ac- count, taking their receipt for the same. In case of non-accept- ance, you will have the Bill protested, giving us due notice. Believe us, Gentlemen, Your's respectfully, Hanks, Harris & Co. ONPROTEST. New- York, July 24th, 1837. Messrs. Hanks, Harris & Co., ) Hartford. ] Gentlemen, In conformity with your favor of the 8th ultimo, your Bill has been duly presented for acceptance, which being refused by St. Johns & Co., is now under protest. No exertions were spared on our part to procure acceptance, but all to no purpose. Waiting further orders, We are. Gentlemen, Your's truly, John Howard & Co. LETTER-BOOK. 49 ORDERS TO INSURE. Habtford, July 2nd, 1837. John Trust, Esq., ; New York, j Sir, Please effect Insurance for our Account, on thirty-three bales Broadcloths, $4120,50, shipped per the Jane, Capt. Ben- son, from this port to New-Orleans, placing the amount of in- surance to the Dr. of your Humble servants, Hanks, Harris & Co. HAVING EFFECTED INSURANCE. Njiw-YoKK, July 9th, 1837. Messrs. Hanks, Harris «fe Co., Hartford. Gentlemen, In obedience to your request of the 2nd, I have effected in- surance with the Marine Insurance Company, for $4120,50, on the cloth consigned per the Jane, Capt. Benson, Master, for New- Orleans — Premium and Policy amounting to $80,00, which I have placed to your debit. I am, sir, Very respectfully your's, John Trust. New-York, July 12th, 1837. Messrs. Hanks, Harris & Co., > Hartford. \ Gentlemen, It is with regret that I inform you of the total loss of Flour, per the Hero, Capt. Sans, from this port to Hartford. I am hap- py, however, that it was insured, as per your advice, and that the underwriters, with whom the insurance was effected, are honora- ble men, and have agreed to pay the above on the 30th inst., im- mediately after which you shall be in cash. Meantime, I am, Gentlemen, Your's very truly, John Trust. 7 Jl I 50 LETTER-BOOK. Barkhamsted, Sept. 1st., 1837. Messrs. Hanks, Harris &; Co., ) Hartford. j Gentlemen, ^ It becomes my painful duty to inform you that our Compa- ny, inconsequence of certain unfortunate engagements with seve- ral houses in New-York, find it out of their power to meet their engagements, and are obliged to suspend payments. You, being one of the creditors, will, with the others, be duly notified of a general meeting, when the balance-sheet will have been taken and submitted for examination. In the mean time, we shall collect such facts as will convince all, that the embarrassments have arisen, not from mismanage- ment on our part, but from causes entirely beyond our control. Your's, very respectfully. Super Superfine. Hartford, July 4th., 1837 Martin Van Buren, Esq., t Washington. ) Sir, It gives us much pleasure in introducing to your acquaint- ance, the bearer, Samuel W. Chapin, of our place, who antici- pates spending some months at Washington. As Mr. Chapin is a particular friend of ours, we shall feel per- sonally obliged for any marks of civility and attention which you may show him, assuring you at the same time that you will find him a gentleman and a scholar. We remain, most truly, sir, Your obedient servants, Brown & Brothers. QUESTIONS AND ANSWERS ON FOREIGN AND INLAND BILLS. What is a Bill? A Bill is an obligation by which one party binds himself to pay a certain sum of money to another party, at some future period therein specified. What is an Inland Bill? An Inland Bill is one payable in the same country or state in which it is drawn, and may be in the shape of a Promissory Note or Draft; the former containing a promise and the latter an order. What is an Inland Draft ? An Inland Draft is an order from a party called the Drawer, addressed to another party called the Drawee, both in the same country or state, requiring the latter to pay to his order, at a specified time, a certain amount in money or other property. What is a Promissory Note ? A Promissory Note is a written promise from a party called the maker, to another party called the payee, or holder, to pay a certain sum of money or other property, to his order, within a specified time. What are the requisites for a regular Bill ? In a regular Bill, the following four particulars are requisite — 1st. The sum, place, and date; 2nd. The time of payment; 3rd. The person to whose order it is payable; 4th. The address and superscription. How many persons may be concerned in an Inland Bill? The Drawer, Drawee, Acceptor, Payee, Indorser, and Indorsee. The Drawer is the party that makes the Draft. The Drawee is the party on whom it is drawn. JVofc— Drafts which are made or indorsed in one of the states and payable in another state, are by the best authority now considered Foreign Bills. The laws which regulate Bills are made by each state for itself. 62 FOREIGN AND INLAND BILLS EXPLAINED. Acceptor is the party on whom it is drawn, and by subscribing it, is bound to pay its value when due. Payee is the party to whose order the Draft is made payable, and who must be \hejirst indorser. Indorser is the party who writes his name across the body of the Bill. Indorsee is the holder or party to whom the Bill is last in- dorsed. What is meant by Discounting a Bill ? Discounting a Bill means to procure cash for it before it is due; and a Bill is said to be discomited when it is indorsed to any per- son or Banking Company, that pay the holder the net proceeds ; that is, the face of the note, less the interest, for the time it has to run before maturity. What are the incidents to which Bills are subjected, after they are dehvered by the Drawer? Acceptance, Indorsement, Payment, and Protest. What is an Indorsement? A general Indorsement is when the holder's name only is writ- ten on the back, being in effect a promise to pay, should the ac- ceptor or any of the previous indorsers become insolvent. A special Indorsement is when the holder names the party to whose order he indorses it; and this form is preferable to a gen- eral Indorsement, in remitting bills, in point of security, because it prevents, as far as possible, fraud or forgery, as the person's name to whom it is indorsed, must be forged before it can pass. When should a Bill be presented for payment ? It should be presented on the last day of grace, within Bank hours, that is, before 3 o'clock, P. M. and after 9 A. M. What is meant by Days of Grace ? Days of Grace are a certain number of days after the time limit- ed by the Bill, which the acceptor has a right to demand on payment of the same. These days were so called because they were gra- tuitously allowed; but now, by custom of the merchants, sanction- ed by the decision of the courts of justice, they are demandable of right. The number of these days varies, according to the different custom of different nations, and must always be computed accord- ing to the laws and customs of the place where they become due. Three days are allowed, as a general thing, in the United-States. FOREIGN AND INLAND BILLS EXPLAINED. 53 If the last day happen on a Sunday, fast-day, or any hoUday, the Bill becomes payable on the preceding day. Amsterdam has 6 days; Hamburg, 12; Paris, 10; Madrid, 14; Leghorn, 0; Na- ples, 3; Genoa, 30; Venice, 6; Lisbon, 6; London, 3; Dublin, 3; Gibraller, 14; Vienna, 3; Copenhagen, 8; Dantzic, 10; Trieste, 3; Cadiz, 6; Petersburgh, 10; Rotterdam, 6; Edin- burgh, 3 ; Geneva, 5 ; Bremen, 8 ; Antwerp has 6 days grace. What is a Foreign Bill ? A Foreign Bill is an order from a party in one country, ad- dressed to another party in a different country, requiring him to pay a certain sum to his order, or to a third or fourth party, at a specified time. What is meant by Protesting a Bill ? If a Foreign Bill is refused acceptance, when presented or re- fused payment when it becomes due, it must be Protested. For this purpose, it is necessary to cause a Notar}'- Public to call on the party drawn upon in the former case, or at the place where it is made payable in the latter case, and demand acceptance or pay- ment, (as the case may be,) by which he secures his right of re- course against the Drawers and Indorsers, jointly and severally, for payment, interest and damages. What is meant by Noting a Bill ? The Notary's marking on the Bill the date of protesting, with his initials, which is legal evidence of protest. What is the consequence of neglecting Protest? A Bill neglected to be protested, loses it privileges, and becomes only a simple document, on which an action may be raised against the acceptor for the payment of the debt; but this is attended with many disadvantages. How is the time of payment fixed on Bills drawn after sight? The acceptor marks the date of his acceptance on the Bill, and the term is only computed from it, and not from the date of the Bill. What is Usance or Double Usance ? Usance is the usual time at which Bills are drawn between dif- ferent places, as one, two, or three months after sight ; and Double or Treble Usance, means twice or thrice the time • and half Usance is one half the time. What is a proper negotiation of a Bill? 64 FOREIGN AND INLAND BILLS EXPLAINED. It consists in the diligent and due performance of the several duties which the law, and the practice of the country, require of the several parties. What is the duty of the Drawer ? It is the duty of the Drawer to furnish the Payee with a good and unexceptionable Draft on a Drawee with whom he has suffi- cient credit, or funds in his hands ; because in case of non-accept- ance or non-payment, the Payee or holder can sue the Drawer for the amount of the Draft, and damages. What is the duty of the Drawee ? The duty of the Drawee is to be punctual in returning any Bill transmitted to him for acceptance, by the first post, whether ac- cepted or not; otherwise he is answerable for the sum of the Bill, unless he give due intimation of his non-acceptance. What is the time allowed for acceptance of Bills drawn after sight ? The Drawee, in general, ought to accept in twenty-four hours, or to signify to the Payee or holder, that it will not be accepted. If it be a Bill drawn after sight, and which he means to accept, he is bound to date his acceptance on the day it was presented, or at all events, the day following. And he is bound to accept the Bill of the Drawer to the amount of funds belonging to the Drawer in his possession. What is meant by accepting and paying Supra-Protest ? A Supra-Protest, or acceptance upon honor, is a collateral ac- ceptance, by first allowing the Bill to be protested, and then for the honor of the Drawer or Indorser, immediately accept it, by which means, should the Acceptor not afterward be put in possession of funds, he will secure his right of recourse. How is a Supra-Protest taken ? The Drawee must write on the Bill to this effect : " Accepted Supra-Protest in honor of A. B.," after which he should immedi- ately send the Protest, and the information of the acceptance, to the party for whose honor it was accepted. Why is it necessary that the Drawer should get early notice of non-acceptance ? To enable him to take the necessary steps for recovering any effects which he may have in the hands of the Drawee, as well as FOREIGN AND INLAND BILLS EXPLAINEp. 55 to furnish the holder with another Bill, ox providing for payment of the dishonored one by the time it falls due. What is meant by a Bill being dishonored ? Bills are dishonored when acceptance or payment is refused, by which a protest becomes necessary as soon as the Drawee re- fuses to accept or pay. When a Bill is dishonored for non-pay- ment, it generally, at least, in the way of courtesy, returns succes- sively in the way it advanced, until it reaches the Drawer; al- though the Holder may take any of the preceding Indorsers he chooses, holding them responsible for the sum of the Bill, for in- terest and expenses. What are the consequences, should the Holder neglect to Pro- test it in due time, or to give intimation of non-acceptance or non- payment ? Should the Holder either neglect to protest in due time, or to give intimation of non-acceptance or non-payment, he forfeits all claim against any of the Indorsers, because by this neglect of his duty he puts it out of their power to take legal steps for their relief, even though he can show from the failure of the Acceptor, or any other circumstance, that no loss, in point of fact, ensued from his neglect. What time does the Law allow to give intimation ? In ordinary cases, intimation of the dishonor of a Foreign Bill must be forwarded by the Ji7'st post ; and if an Inland Bill, the same is required. FORMS OF BILLS. DUE-BILL A Due-Bill is simply a pledge on the part of the giver, to pay- to the givee so much cash or other property, at some future pe- riod, in consideration of an equivalent received. It is doubtful vv^hether it is entitled to any interest, except it be written, " with interest" FORM I. $500,00. Due, Hartford, March 15th, 1838, to John Trust, Five Hun- dred Dollars, value received. Samuel Risk. F O R M I I . $500,00. Due, Hartford, March 15th, 1838, to John Trust, Five Hun- dred Dollars, to be paid in Goods from my store, value received. Samurl Risk. RECEIPT This merely certifies that the giver has received from the givee a certain amount of cash, or other property, on his ov^n or on the account of a third person. FORM I. $150,00. Received, Hartford, March 15th, 1838, from Daniel Wads- worth, Esq., One Hundred and Fifty Dollars. David L. Long. FORM II. Received, Hartford, March 15th, 1838, from David Sage, Three Hundred Bushels of Merchantable Corn, in full of all demands. J. King. FORMS OP BILLS. 67 FORM III. $300,00., ' Received, Hartford, March 15th, 1838, from S. Tudor, on ac- count of Thomas Brown, Three Hundred Dollars, in full of all demands against said Brown. Errors excepted. H. Thorndike. PROMISSORY NOTE. A Promissory Note is a written obligation of one party, to pay to another party, at some future period, a certain amount of cash, or other property, in consideration of an equivalent received, These Bills are generally transferable, at the option of the holder, and may pass through a dozen hands before payment. FORM I. Hartford, March 15th, 1838. $1,000 One month from date, I promise to pay to the order of John Jacob Astor, at the Hartford Bank, One Thousand Dollars, value re- ceived. Samuel Parker. The above form would be transferable, but the holder must lodge it in the Hartford Bank 33 days from date, or before, as the maker is not obligated to pay it elsewhere till after the given date. form II. Hartford, March 15th, 1838. $1,000. Sixty days from date, we severally and jointly promise to pay to the order of Daniel Wadsworth, One Thousand Dollars, value received. Samuel W. Chapin. Chxuncey Howard. A Bill of this form will hold either of the signers responsible, and "in case of need," either, or both, maybe sued for its pay- ment, form III. Hartford, March ISih, 1838. $500,00. Ten days from date, I promise to pay J. J. Astor, Fi^e Hun- dred Dollars, value received. John Dov. 8 58 ^ FORMS OP BILLS. Any legal steps taken in relation to this Bill, must be instituted in the name of the givee, though it may have had a number of owners, andstill be in the possession of another person. DRAFTS. A Draft is an order from one party, requesting another party to pay, at some definite time hereafter a certain amomit of money, or other property. FOAM I. Hartford, March 15th, 1838. $500,00. Thirty days from date, pay to my order Five Hundred Dol- lars, value received, and place the same to the debit of Saul H. Porter. To Caleb Pond, Esq., ) Hartford, Conn. \ The above Bill being presented for C. Pond's acceptance, he will write across the face of it, "Accepted;" obligating him- self by the same token to pay the amount agreeable to terms pre- scribed. It having now become virtually a promissory Note, it may be transferred like any negotiable paper, before maturity. FORM II. Hartford, March 15th, 1838. $500,00 At sight, pay to the order of William H. Imlay, Five Hundred Dollars, value received, and place the same to the debit of Saul H. Porter. To Caleb Pond, Esq., ) Hartford, Conn. ) FORM III. / Hartford, March 15th, 1838. $300,00. Ten days' from sight, pay to the order of Daniel Wadsworth, at the Hartford Bank, Three Hundred Dollars, value received, and place the same to the debit of . Saul H. Porter To Caleb PonD/"Esq., ) Hartford, Conn, ) This Praft, after acceptance and before maturity, must be lodg- ed in the Hartford Bank for collection. The above would be- comei/due, including three days grace, 1 3 days from acceptance^ BILLS OF EXCHANGE. 59 Should the third form fall due on Sunday, Thanksgiving, Fast- day, or any day of public rest, or a special holiday, payment would be lawfully exacted on the preceding day, and unless paid accordingly, it might be protested. BILLS OF EXCHANGE. Bills of Exchange are the channel through which many mer- chants meet their liabilities to others, and through which most debts are canceled between individuals of different nations. These Bills are styled Liland, if confined to parties of the same country, and Foreign, if they pass from one nation to another ; both, however, being entitled to nearly the same privileges. The great safety and convenience which Bills of Exchange proffer to individuals going from one country to another, and in canceling debts between A. and B. of different nations, have ren- dered them very common and almost indispensable. For instance — B., of London, owes A., of Hartford, $1,000. C, who is going to London, and is in want of $1000 on his arri- val there, buys a set of Exchange or Draft of A. on B., which enables B. to cancel the. debt with the least possible trouble, and also puts C. in funds w^hen he arrives, without the risk and trouble of transporting specie. Three days grace are allowed on these Bills in England and the United-States, as on promissory Notes, and indeed, what is true of Drafts, as such, is substantially true in relation to Bills of Exchange. These Bills are sold by Banking Companies and Brokers, prin- cipally, both on their own account and for individuals, who, having debts abroad, deposite Drafts with the Brokers, to sell, on which a premium of from 2 to 12 per cent, is paid. A set of Exchange is from 2 to 6 copies of the same Bill, being fac-similes of each other, except the clauses, (2nd. and 3rd. unpaid,) (1st. and 3rd. unpaid,) (1st. and 2nd. unpaid,) &c., which phrases, one having been paid, render the remaining copies null and void. Each of these copies are sent out by different vessels, to prevent delay in payment, should the first be lost. 60 FORMS OF BILLS. FORM. ' Hartford, Feb. 10th, 1838. Exchange for jei,000. At sight of this my first of exchange, (second and third unpaid,) pay to the order of Dubois & Long, One Thousand Pounds, Sterling, value received, and place the same to the debit of D. W. Clarke. ToJ.XoRD&Co., I London. ) Hartford, Feb. 10th, 1838. Exchange for jei,000. At sight of this my second of exchange, (first and third unpaid,) pay to the order of Dubois & Long, One Thousand Pounds, Sterling, value received, and place the same to the debit of D. W. Clarke. To J. Lord & Co., I London. ) r Hartford, Feb. 10th, 1838. Exchange for jG 1,000. At the sight of this my third of exchange, (first and second unpaid,) pay to the order of Dubois & Long, One Thou- sand Pounds, Sterling, value received, and place the same to the debit of D. W. Clarke. To J. Lord & Co., ) London, ) Accepted, April 20th, 1838. J. Lord & Co. The phrase, " as per advice," and " in case of need," " A. B.," &c. The former expression implying that the drawer had pre- viously advised the drawee, per letter ; and the latter phrase is sometimes inserted where there is some fear that the Bill will not be accepted by the drawee, in order that the holder may present it (in case of refusal by the drawee) to A. ; and if he does not honor it, to present to B., &c. This arrangement may supersede the necessity of returning the Bill to the maker, and save the ma- ker the mortification of having his Bill dishonored. DAMAGES ON PROTESTED BILLS. When Bills of Exchange or Drafts are protested for non-ac- ceptance or non-payment, the State in which the Bill was drawn or negotiated determines the damages which shall be paid on such Bill. The damages in several of the States are as follows : — The damages on Bills drawn or negotiated in Massachusetts, payable in any place beyond Cape of Good-Hope and protested DAMAGES ON PROTESTED BILLS 61 for non-acceptance or non-payment, are 20 per cent., with inter- est, and SO much money as will buy a good Bill on the place where the first was payable; if such Bills are payable in any other place out of the United-States, the maker or indorser shall pay the amount of the Bill, on demand, at the then current rate of exchange, with 5 per cent, damages and interest on the contents, from the time of protest, which shall be in full, for all damages, charges, and protest. The damages on such Bills, payable in any of the New-Eng- land States, or New- York State, are 3 per cent.; if payable in Virginia, New-Jersey, Pennsylvania, Delaware, Maryland, or the District of Columbia, damages are 5 per cent.; if payable in North- Carolina, South-Carolina or Georgia, damages are 6 per cent.; if payable in any other place in the United-States, the damages are 9 per cent. ; if $100, or more, and payable in the same state, and more than 75 miles from where it was drawn, damages are 1 per cent. The holder is, in all cases where the Bill is payable in the United-States, entitled to so much money as will buy a good Bill, interest, charges, and the fore-mentioned damages. The damages on Bills drawn in Connecticut, and payable in other States or places, which shall be returned, under protest, shall be as follows. If payable to any person in New-York city, 2 per cent, on the specified sum ; if to any person in Ver- mont, New-Hampshire, Maine, Massachusetts, Rhode-Island, Nev/-York, (except the city,) New-Jersey, Delaware, Pennsylva- nia, Maryland, Virginia, or the District of Columbia, the damages are 3 per cent, upon the principal sum ; if payable to any person in North- Carolina, South- Carolina, Ohio, or Georgia, 5 per cent, on such principal sum; if to any person in any other State or Territory, or District in the United-States, 8 percent, on such prin- cipal sum. These named damages shall be in lieu of interest and charges till the time notice is given the maker or indorsers of protest. In all cases the holder is entitled to a new Bill, or so much money as will buy one at the then current rate of exchanges. The damages on Bills drawn, or negotiated in New- York, paya- ble in any of the New-England States, New- Jersey, Pennsylvania, Ohio, Delaware, Maryland, Virginia, or the District of Columbia, and returned under protest, are 3 per cent. ; if payable in North F 62 DAMAGES ON PROTESTED BILLS. Carolina, South- Carolina, Georgia, Kentucky, or Tennessee, and returned under protest, the damages are 5 per cent. ; if payable in Europe, or any State or Territory in the United-States, north of the Equator or West-Indies, or any other place in the Western or Atlantic Ocean, and returned protested, the damages are 10 per cent. Such damages shall be in lieu of interest, charges, &c., till the time when demand shall be made, after which de- mand interest shall be allowed on the principal sum, and charges. The holder is entitled in addition to such damages, to a new Bill, or money to buy such Bill at the current rate of exchange between the two places. The damages on Bills drawn or negotiated in Pennsylvania, payable out of the State, but in the United-States, (Louisiana ex- cepted,) and returned under protest, are 5 per cent. ; when payable in Louisiana or any other place (out of the United-States,) in North- America or its Islands, except the North-West Coast of America, Mexico, or in any of the West-Indian Islands, or Bahama Islands and returned under protest, the damages are 10 percent.; when payable in Madeira, the Canaries, Azores, Cape-de-Verd Islands, Spanish Main, or Mexico, and returned protested, the damages are 15 per cent. ; when payable in Europe, or its Islands, and returned under protest, the damages are 20 per cent., and in any other part of the world 25 per cent. Interest is given on the amount of the Bill ; damages and charges are allowed from the time of notice of protest ; and the amount of the Bill, and damages are to be deter- mined by the rate of exchange at the time of notice. The damages on Bills drawn or negotiated in Louisiana, paya- ble out of the jurisdiction of the United-States, and returned under protest are 10 per cent. ; if payable in any other State in the Uni- ted-States, and protested, the damages are 5 per cent, upon the sum specified in the Bill. Such damages arc in lieu of interest, charges, and protest, till notice is given of protest. Also so much money as will buy another good Bill on the same place. The damages on Foreign Bills, drawn in IlHnois and protested for non-payment or non-acceptance, are 10 per cent., and on Inland Bills the damages on protest are 5 per cent. ; with incidental charges, interest from the time they should have been paid, and the principal sum of the Bill to be settled at the current rate of ex- change. FORM OF PROTEST. BILL OF LADING No. 1, 2, 3, D. Bond, New-Orleans. Shipped, in good order, and well-conditioned, by Hicks, Lawrence <^ Co., on board the ship, called the North American, whereof John Smith is Master, for the present voyage, now lying in the port of Hartford, and bound for New-Orleans. To say, Three boxes, containing hooks, being marked and numbered as in the margin, and are to be delivered in the like good order, and well-conditioned, at the afore- said port oi New- Orleans, (the danger of the seas only excepted,) unto D. Bond, or to his assigns, he or they paying freight for the said goods, with primage and average accustomed. In witness whereof, the Master of the said vessel hath affirmed to three bills, of lading, all of this tenor and date ; one of which being accomplished, the others to stand void. Dated, at Hartford, Conn- July 31st., 1839. John Smith. COMMON PROTEST of a foreign bill. On this 2nd. day of March, in the year 1838, at the request of D. Bond, of the city of New- York, merchant, and bearer of the origi- nal Bill of Exchange, whereof a true copy is on the other side written, I, D. Brown of the said city, Notary-Public, duly admit- ted and sworn, went to the store of D. Brand, on whom said Bill is drawn, and there speaking with a clerk in the accounting house, I produced and exhibited to him the said original Bill of Exchange, and demanded acceptance thereof, to which he an- swered — That he knew nothing about its acceptance, and which answer not being satisfactory, I, the said Notary, at the request aforesaid, have Protested, and by these presents do solemnly Protest, as well against the drawer of the said Bill of Exchange, as against all others whom it doth or may concern, for exchanges, 64 FORM OF RELEASE, &C. re-exchanges, damages, costs, charges, and interests, suffered or to be suffered for want of acceptance of said Billof Exchange. This done in the presence of R. Doe and J. Doe, witnesses hereunto required. D. Brown. ACT OF HONOR. Afterward, on the same day, month, and year, before me, said Notary, and witnesses, personally came and appeared, Mr. L. May, of this city, merchant, who declared he was ready, and would accept the said Bill of Exchange, now under Protest, for the honor and on account of D. Brand, the drawer, holding him, the said drawer thereof, and all others concerned, always obliga- ted to him, the said appearer, for reimbursement in due form of law. D. Brown. From a Merchant to two of his Clerks, to transact and manage commercial concerns. I herein appoint my two clerks, D. Bond and D. Brown, of the city of New-Orleans, to be my lawful attornies, jointly, for me, and in my name, to transact and manage all business ; also, to open all letters of correspondence, to sign and answer the same, and to draw, accept, and pay all Bills of Exchange or other Promissory Notes; all monies to receive and acquittances to give for the same ; also to draw and sign all orders and drafts for payment of money, on bankers, or other persons, where I, the said C. Doe, shall keep cash; and further also, to settle, balance, and arrange all books and accounts, and generally to do every act, matter and thing, as the nature of the business of me, the said C. Doe, may require. I do hereby ratify, &c. A GENERAL RELEASE. Know all men by these presents. That I, D, Bond, of Hartford, for, and in consideration of the sum of $5,000, paid to FORM OP LEASE, &C. 66 me by D. Brown, of Hartford, have remised, released, and forever discharged, and by these presents, do, for me, my heirs, execu- tors, and administrators, remise, release, and forever discharge said D, Brown, his heirs, executors, and administrators, of and from all manner of action, and cause of action, suits or debts against said D. Brown, which I ever had, or now have, from the beginning of the world, to the day of the date of these presents. In witness, &c. GENERAL POWER OF ATTORNEY. Know all men by these presents, That I, D. Bond, of Hartford, do hereby ordain, constitute, and appoint D. Brown, of Hartford, my true and lawful attorney for me, and in my name to demand, sue for, recover, and receive all sums of money and debts due me, and all claims and demands against all persons whatever, and to give sufficient acquittances therefor, and to ad just, settle, or compound all debts, or demands, and to institute proper suits for the recovery thereof, and the same to pursue to final judgment and execution; and I hereby ratify and confirm what my said attorney shall lawfully do in the premises. In witness whereof, I have hereunto set my hand and seal, this 9th, day of March, in the year of our Lord, 1838. D. Bond. LEASE. Know all men by these presents. That I, W. H. I., of H., in the State of Connecticut, have demised and leased to A. H., of said town and State, a room in the Union-Buildings, for a store, for the term of two years from the first day of April, 1838, for the yearly rent of $500, payable in yearly payments. To HAVE AND TO HOLD the samo for the term of two years from the first day of April, 1838, and to return the same in the condition in which it was received, the usual wear and tear of the premises only excepted; the lessor reserving to himself the right of re-entry on the premises aforesaid, provided said A. H. shall 9 F* 66 FORM OF BOND, &C. fail to pay the yearly rent within fifteen days after the same shall have become due. Said A. H. further agrees that he will admit no other person into said room, except with the consent of the lessor. Dated at Hartford, this first day of April, 1838. W. H. I. The lessor and the lessee should each hold a similar copy of a lease. The copy which the lessor holds should have the signa- ture of the lessee, and vice versa. BILL OF SALE OF PERSONAL CHATTELS. Know all men by these presents. That I, D. Brown, of Hartford, for the consideration of $700, received to my full satis- faction, of D. Bond, of Hackney, do bargain, sell, and convey to the said D. Bond, the several articles of furniture and property, contained in the schedule hereunto annexed. 1 dozen chairs. 1 sofa. 1 black horse and 4 cows, being all that I have. To have and to hold the said goods, &c. unto him, the said D. Bond, forever, without any claim or demand from any person under me. And I, the said D. Brown, do for myself, my executors and administrators, covenant and agree with the said D. Bond, to warrant and defend to him the said goods, &c. against all persons whatever, and which goods I have delivered the possession to the said D. Bond. In witness whereof, &c. [To avoid the claim of creditors, there must be actual delivery of possession of personal property, by the vender to the vendee.] FORM OF A BOND. Know all men by these presents, That I, D. Bond, of the city of Hartford, and State of Connecticut, am holden and firmly bound to D. Brown, of the aforesaid City and State, in the sum of $3,000, to be paid to said D. Brown, or his certain attor- ney, executors, administrators or assigns ; for which pajrment FORM OF INDENTURE, t ( Paul Jones. I consent to the covenant of my son with John Miller, as above. Lemuel Bond. PART II, BOOK-KEEPING BY DOUBLE-ENTRY. In Single-Entry, each sum is posted only once in the Ledger but in Double-Entry, each sum is posted twice ; that is, at two or more accounts. Hence, Double-Entry. In a large and com- plicated business, the latter method is the only one that can be adopted with safety. More writing is required in Double-Entry, and, in some cases, more Books. Generally, the Books used are the Waste, or Day-Book, Journal, Ledger, C ash-Book, Bill- Book, Invoice-Book, Account- Current-Book, and Letter-Book, the forms and designs of which are given in the first part of this work. Some writers on the science of accounts have evidently given themselves much trouble in attempting to classify accounts under distinct heads; others would abridge the process of posting, &c. By such attempts, the principles of equilibrium, as connected with Book-keeping have been foolishly mystified; and conse- quently many young men who have begun the study of Book- keeping, have been baffled, discouraged, and have abandoned their purposes. One writer recommends, in posting, to leave out the preposi- tions "To" and "By;" another the interlining of the Ledger, posting only the date and the sum, and another the interlining and date also. If such advice were designed for those already in the business of keeping accounts, they could better judge of the expediency of following it, but when elementary books are written on that plan, the evil may be great. It is diflicult to write on the subject of accounts, without using the technical language of Book-keeping. In a given case, Mer- chandise is made Dr. "To Cash;" and although we know there 72 DOUBLE-ENTRY. is no obligation resting between the two accounts themselves, we make use of this language because it more readily conveys to the mind of the learner the principles involved. We conside7' the accounts of Stock, Merchandise, Real-Estate, &c., responsible for the money, goods, &c. which have been disposed of, on their ac- count. When I pay John Olmsted money on account, I make his account, in the Ledger, Dr. "To Cash ;" so if I pay cash for real-estate, I make Real-Estate Dr. "To Cash;" or if I pay cash for merchandise, I make the Merchandise- Account Dr. " To Cash.". The same is true of Insurance, Commission, Shipping, Shipments, &;c. When John Olmsted pays me cash on account, I credit the ac- count of John Olmsted, "By Cash ;" so when Merchandise pro- duces me cash, on sales, I credit the Merchandise-Account " By Cash." If my Ships, Shipments, Real-Estate, &c., produce me money, notes, merchandise, either for freight, sale, or returns, I credit the said account, "By Cash" or "Bills Receivable," as the case may be. Thus we nominally uiBke one account Dr. to another, and Cr. one by another. If I give John King, an order on John Olmsted & Co., for $10 worth of goods, I should make King's account in my Ledger, Dr. " To John Olmsted & Co.," and make John Olmsted & Co's. account, Cr. " By John King." Again, if I sell a person goods and take in payment his note, I make the Bills Receivable- Account, in the Ledger, Dr. "To Merchandise ;" and make the Merchandise-Account, Cr. "By Bills Receivable." Therefore, it will be seen that we treat all the accounts in the Ledger and in journalizing, mainly as Personal Accounts, making each nominally accountable for what it receives, and crediting it for what it produces, that is, for what I receive under that head. I would say, " Mr. Merchandise, I shall Dr. you to the cash I have paid for you," (when I have bought mer- chandise for cash,) " and I will Cr. you for the cash you have paid me," (when I have «old merchandise for cash.) Thus I would say to Mr. Jones, Mr. Insurance, Mr. Bills Payable, &c. Note. — The examples given on the several following pages may be written out and journalized on slate, black-board, or blank-book, in a form similar to those on Day-Book and Journal, Set 1st., Double-Entry. This course may be pursued by the teacher, till the nature of the transactions are fully comprehended and the pupil can record them with facility and correctness. DOUBLS-ENTRY. 73 If, in beginning business, or at the time of opening the accounts in the Ledger, John Jones owes me $300, on account, I make his account Dr. to 300, and the Stock-account Cr. By $300. If I owe John James $600, on account, at the same time, I make his account Cr. By $600, and make the Stock-account Dr. To $600 ; so if I have Cash $3,000, 1 make in hke manner, the Cash-account Dr. $3,000 and Stock Cr. ; and the same with Mer- chandise, Bills Receivable, &c. ONTHE-CASHBOOK, I Enter the Cash in hand at opening the Book, and every sum you afterward receive, on the Dr. or left hand page, beginning each entry with the preposition " To ;" and on the Cr. or right hand page, every sum youpay, with the preposition " 5y." The difference of the two sides is placed on the smaller side, " Bt/ Balance,''' monthly ; and that Balance is carried to the Dr. side, " To Balance,'" showing how much money you have to commence the next m.onth with. See Cash-Book, Set 3rd. The Day-Book is sometimes kept in the narrative style, (which is almost indispensable in teaching) and sometimes in the Journal form of Dr. and Cr., and on it are recorded all the transactions which are not more properl}'' entered on the subsidiary Books. This Book first gives a statement of the Merchant's affairs at the opening of the Books, defining the items of property which he commenced business with, and also whatever he may owe at that time — as, 1. If I begin business with Cash $3,000, Merchandise w^orth $fe,000 ; James Brown owing me $2,000, Notes against individu- als $2,000, and Real-Estate worth $5,000, 1 would make a state- ment as follows, viz : ^ ■ Cash, . . . Dr. $3,000^ Merchandise, . Dr. 6,000 James Brown, . Dr. 2,000 Bills Receivable, Dr. 2,000 Real-Estate, . Dr. 5,000. 2. If I owe at the same time $1,000 to John King, and $2,000 on Notes, the statement is as follows : ^ . . ^ ^^^r.^{ John Kinff is Cr. $1,000 Stocks Dr. $3 000 J ^.„ ^^ \. • ^ 'r^nn ( Bills Payable is Cr. 2,000 10 G ^ Stock is Cr. $18,000. 74 ^ DOUBLE-ENTRr. The above statement having been made, the follovi^ing exam- ples maybe regarded as uniformly tru6 in the process of business. In case the Day-Book is kept in the Journal form, the following will show the method in which the entries are made, wanting the date and some explanatory remarks. 3. When I buy Merchandise on my note for $1,000 Merchandise is Dr., and Bills Payable are Cr. . . . . $1,000 4. When I buy Merchandise for Cash, $2,000 Merchandise is Dr., and Cash is Cr 2,000 5. When I buy Merchandise on trust, $,3000 Merchandise is Dr., and the Person who trusted me is Cr. 3,000 6. When I sell Merchandise for a note, $1,000 Bills Receivable are Dr., and Merchandise is Cr. . . 1,000 7. When I sell Merchandise for Cash, $8,000 Cash is Dr., and Merchandise is Cr 8,000 8. When I sell Merchandise on trust, $3,000 The person trusted, is Dr., and Merchandise is Cr. . . 3,000 9. When Mdse. is shipped on adventure, $2,000 Adventure (place named,) is Dr., and Mdse. is Cr. . 2,000 10. When I give W. B. Bond my note for his, (or exchange notes,) for $400 Bills Receivable are Dr., and Bills Payable are Cr. . . 400 1 1 . When I get my own note discounted at the Bank or elsewhere, and allow a discount of $20, the whole amount of the note being $2,000 Cash is Dr., and Bills Payable are Cr 1,980 And Profit and Loss is Dr., and Bills Payable are Cr. . . 20 12. When I give my note for Insurance, $50 Insurance is Dr., and Bills Payable are Cr 50 13. When I give my note for Real-Estate, 2,000 Real-Estate is Dr., and Bills Payable are Cr. . . . 2,000 14 When I give Cash to repair our church, $400 Private account is Dr. and Cash is Cr 400 DOUBLE-ENTRY. 75 1 5. When John Brown becomes insolvent, owing me $1,000, and I agree to lake $50 on the $100, he giving me the balance in Cash, Cash is Dr., and John Brown is Cr $500 And Profit and Loss are Dr., and John Brown is Cr. . . 500 16. When John King, consigns goods to me, to sell, and I pay for Custom-House duties, my note, $100, and charges in cash, $50, King's Consignment is Dr.,* and Bills Payable are Cr. 100 And King's Consignment is Dr., and Cash is Cr. . . 50 17. When I purchase ship Mary, for Cash, $8,000, Ship Mary is Dr., and Cash is Cr 8,000 18. When I expend money for clothing or family stores, $100 Private Account is Dr., and Cash is Cr 100 19. When I give my note on ac't. to J. Brown, $,1000, John Brown is Dr., and Bills Payable are Cr. . . . 1,000 20. When I redeem my note for cash, $2,000, Bills Payable are Dr., and Cash is Cr 2,000 21. When I receive J. Coming's note on ac't. $2,000, Bills Receivable are Dr., and John Corning is Cr. . . 2,000 22. When I receive pay't. for that note, in Cash, $2,000, Cash is Dr., and Bills Receivable are Cr 2,000 23. When I allow John Brown discount, $20 Profit and Loss is Dr., and John Brown is Cr 20 24. When I give the Bank John Brovm's note, $1,000, and receive cash, $990, and allow discount, $10, Interest is Dr., and Bills Receivable are Cr 10 And Cash is Dr., and Bills Receivable are Cr. . . . 990 * When there are several Drs. and Crs. in the same transaction, say, " Sundries Dr. to Sun- dries." When, in the same transaction, there is one account debited, and more than one credited, the account is made Dr. " To Sundries," without specifying the accounts credited ; and vice versa, when there are more than one Dr. and but one Cr. In all the cases, where the preposition " To" comes before Cash, Merchandise, Bills Payable and Receivable, or any account ; that account is credited " By the account" which is debited. ■ 76 DOUBLE-ENTRY. 25. When I pay John Brown cash on account, $400, John Brown is Dr., and Cash is Cr., $400 26. When John Brown pays me cash on account, $300, Cash is Dr., and John Brown is Cr., 300 27. When S. Bond draws on me, on time, and I accept his Draft, $1,000, S. Bond is Dr., and Bills Payable are Cr., .... 1,000 ^ 28. When I draw on Samuel Tudor, and he accepts my Draft, $700, Bills Receivable are Dr., and Samuel Tudor is Cr., . . 700 29. When I deposit Cash in the Exchange Bank, $800, Exchange Bank is Dr., and Cash is Cr., 800 30. When I draw money from the Exchange Bank, $600, Cash is Dr., and Exchange Bank is Cr 600 31. When I give the Hartford Bank a note for col- lection, $1,000 Hartford Bank is Dr., and Bills Receivable are Cr. . . 1,000 32. When I send James Humphrey, New-York, a note for collection, $400, James Humphrey is Dr., and Bills Receivable are Cr, . 400 33. When he sends me in return a check on the Hartford Bank, $400, Cash is Dr., and James Humphrey is Cr 400 34. When I sell D. W. Clarke a Set of Exchange on J. Brown, for Cash, $800, Cash is Dr., and J. Brown is Cr 800 35. When I lose any amount of money, say, $5, Profit and Loss is Dr., and Cash is Cr 5 36. When I give my note to redeem one previously given, $,100 Bills Payable are Dr., and Bills Payable are Cr. . . 100 DOUBLE-ENTRY. 77 37. When you indorse J. Brown's note to D. Bond, and take Bond's, in return for $600, Bills Receivable are Dr., and Bills Receivable are Cr. . $600 38. If you take up your note of $2,000, and give cash for $1,000, and merchandise $1,000, Bills Payable would be Dr. $2,000, and Cash Cr. . . 1,000 and Merchandise Cr. ....... 1,000 39. If you buy goods for $2,000, and pay $1,000 in cash, and give your note for $1,000, Merchandise would be Dr. $2,000, and Cash would be Cr. 1 ,000 and Bills- Payable Cr . 1,000 40. When you buy the ship Ocean for $8,000, and pay $3,000 in cash, and the balance $5,000 in real-estate, Ship Ocean would be Dr. $8,000, and Cash would be made Cr 3,000 and Real-Estate be made Cr 5,000 41. If you buy Hartford Bank-Stock for $30,000, and pay in cash, Hartford Bank-Stock would be Dr. $30,000, and Cash would be Cr 30,000 42. If you lose property by fire, worth $8,000, Profit and Loss is Dr. $8,000, and Merchandise is Cr. 8,000 43. If you buy of Wm. H. Imlay, Merchandise for $3,000 and give him in payment a Draft on Wm. Hungerford, at 30 days. Merchandise is made Dr. $3,000, and Wm. Hungerford is made Cr 3,000 44. If Buck & Co. draw on you at sight a Bill of Exchange $3,000, Buck & Co. are Dr. $3,000, and Cash is Cr. ... 3,000 45. If Brown and Brothers, London, owe you $500, and remit to you a Bill of Exchange for the same on R. Watkinson & Co., G* 78 DOUBLE-ENTRY. Bills Receivable would be Dr. $500, and Brown and Brothers, Cr. . f 500 46. When you sell goods belonging to Company A, $300, and receive in payment Cash, Cash is made Dr. $300, and Company A, is made Cr. . 300 47. If you sell a Bill of Exchange for $800, on Brown and Brothers, at 2 per cent, premium, and receive Cash, Cash would be made Dr. $816, and Brown and Brothers would be Cr 800 And Profit and Loss Cr. . 16 [The foregoing suppositions may be given out for lessons, and the teacher may ask for the Journal-Entry of each separately.] To THE Student. In what cases is Cash made Dr., and in what Cr. ? In what cases is Merchandise made Dr., and in what Cr. ? In what cases are Bills Receivable made Dr., and in what Cr. ? In what cases is a Person's account made Dr., and in what Cr. ? In what cases are Bills Payable made Dr., and in what Cr. ? In what cases is Profit and Loss made Dr., and in what Cr. ? Also, of Private- Account, Interest, Stock, Real-Estate, Charges, Adventures, Ships, Sales, and Consignments ? - General Rule for Journalizing. " The thing received is made Dr., and the thing parted with is made Cr." OR, " The person who trusts you is made Cr., and the person whom you trust is made Dr." THE NATURE AND DESIGN OF THE LEDGER-ACCOUNTS EXPLAINED Dr. Stock. Cr. Stock is used instead of the merchant's name, and simply shows the condition of his affairs on commencing business, or beginning the year On this, Dr. side, is entered the amount of the merchant's debts on opening his Books, On this, Cr. side, is entered the value of the merchant's capital on opening his Books. Each side of tliis account remains with no increase or decrease, till the Books are balanced, as a general rule. The difference of the Dr. and Cr. goes to the Balance-Account. Dr. Private-Account. Cr. This account should show the merchant's private expenses, such as expenses for family stores, clothing, &c., which are not a loss on his business, and therefore should not be carried to the Profit and Loss-account. All sums paid for private expenses are placed on the Dr. side of this account, and the amount of them transferred to the Dr. side of the Stock-account, To Private- Account. Dr. Merchandise. Cr. This account shows how much hag been paid, and how much received for Merchandise The value of the Merchandise on opening the Books, and all sums paid out for Merchandise, are entered on this side of the account. All amounts received for Merchandise, and the value of what remains unsold when the Books are balanced, are entered on this side of the account. The debit side showing the expense, and the credit side the proceeds, the difference of the Dr. and Cr. is, of course, the gain or loss on Merchandise, and is entered accordingly to the Profit and Loss-account. If an account is opened with any branch of Merchandise, and none of it sold, the amount un- sold must be valued, and the worth placed on the credit side, having already its cost on the debit side ; the same if part is unsold. What is the design of the Stock- Account, and Merchandise- .\ccount ? What is posted to the Dr. side of Stock, and what to the Cr. 1 What is posted to the Dr. side of Merchandise, and wiiat to the Cr.? What is the design of Private- Account, and what is posted to the Dr. side of it ? And where is the amount of it transferred 1 Does this account appear on a partnership Ledger ? 80 LEDGER-ACCOUNTS EXPLAINED. Dr. Insurance. Cr. This acfiount shows how much is paid out, and how much is received ibr Insurance. On this side, all sums which you pay or al- On this side are entered all sums received low for Insurance, are entered. for Insurance. The difference of the Dr. and Cr. goes to Profit and Loss. Dr. Interest. Cr. This account shows how much is paid and received for Interest. On this side enter all sumswhich you pay or On this side enter all sums paid or allowed allow for Discount or Interest. to you for Discount or Interest. The difference of the Dr. and Cr. goes to Profit and Loss. Dr. Commission. Cr. Tliis account shows how much is paid and received for Commission 1 On this side there is seldom any entry made. | On this side are entered all sums which are j received for commission. The difference of the Dr. and Cr. goes to Profit and Loss. Dr. Charges. Cr Tliis account shows how much is paid and received for Charges. On this side are entered all sums paid for clerk-hire, store-rent, and petty expenses, as advertising, storage, cartage, porterage, post- age, &c. The difference of the Dr. and Cr. goes to Profit and Loss On this side are entered all sums received for such charges as are mentioned on the debit side. What is the design of the Insurance Account. What sums are posted on the Dr. side of Insurance ? What sums are posted on the Cr. side of Insurance ? The teacher may ask the same questions on the Interest, Commission and Charges-account. LEDGER-ACCOUNTS EXPLAINED. 81 Dr. Cash. Cr. This account sliows how much cash has been received, and how much has been paid awa; r On this side are entered the amount of cash \ On this side are entered all sums of cash carried into business, and all sums afterward I paid away or disposed of. received. ' The difference of the Dr. and Cr. being the cash on hand, is carried to the Dr. of the Balance- Sheet. Dr Bills Receivable. Cr. Under this head come all written obligations which the owner of the Books holds against other On this side is entered the amount of every On this side is entered the amount of every bill received, of the above description. such bill disposed of. The difference of Dr. and Cr. sides, being the amount of bills on hand, goes to the Dr. side of the Balance-sheet. 10 Dr. Bills Payable. Cr. Under this title come all the written obligations which the owner of the Books has given to pay money. On this side is entered the amount of all his On this' side is entered the amount of every bills which he has redeemed. bill of the above description, which the owner of the Books has issued or parted with. The difference of Dr. and Cr. being the amount of bills wliich are yet unredeemed, goes to the Cr. side of the Balance-Sheet. 11 Dr. John Doe. Cr. This account shows how much John Doe owes you, and the Cr; how much he has paid. On this side is entered each amount which JohnDoeowestheowner of the Books, on Book- Account. On this side is entered each amount which John Doe has paid the owner of the Books, on ' Book- Account. The difference of the Dr. and Cr. of the account, being what one owes the other, goes to the Balance-sheet. The same is true of all Personal- Accounts. What- is the design of the Cash-Account 1 What is posted to the Dr., and what to the Cr. side of the Cash-Account ? The same questions may be asked of Bills Payable, Bills Receivable, and John Doe's Account - - LEDGER-ACCOUNTS EXPLAINED. 12 Dr. United-States Bank-Stock. Cr, This account shows what is made or lost on U. S. Bank Stock, On this side is entered every expense U. S. Bank-Stock. On this side is entered all sums receivea for U. S. Bank-Stock. The difference of the Dr. and Cr. is carried to the Profit and Loss, if any has been sold. A similar account may be opened with Insurance, Rail-Road, or other Stocks. 13 Dr. Ship Mary. Cr. This account shows the gain or loss on ship Mary. On the debit side is entered the value of the ship, when the Books were opened, and every expense afterward incurred on her. The difference of the Dr. and Cr. goes to Profit and Loss On this side are entered the sums which the ship has produced for freight, and her value when the Books are balanced. 14 Dr. Shipment or Adventure to Orleans. Cr. This account shows what is made or lost on goods shipped to Orleans i On this side are entered all sums which the Adventure has cost. On this side are entered all sums which the Adventure has brought in or produced. When an Account-Sales has been received, the difference of the Dr. and Cr. goes to Profit and Loss. If none has been received, the value is carried to the Balance-Sheet, the same as the value of goods unsold in store. Thus vnth all Adventures. 15 Dr. Cotton. Cr. This account shows what is made or lost on Cotton as a separate branch of the business. On this side are entered all sums paid out for Cotton. On this side are entered all sums whicli Cot- ton has produced, and the value of what is un- sold when the Books are balanced. The difference of the Dr. and Cr., if any has been sold, is carried to Profit and Loss. What is the design of the United-States Bank-Stock- Account I What is posted to the Dr. side of the Bank-Stock- Account ? What is posted to the Cr. side of that account ? The same questions may be asked of Ship Mary, Cotton, and Adventure to Orleans. LEDGER-ACCOUNTS EXPLAINED. 83 16 Dr. Swan's Consignment. Cr. This account shows how much has been paid on, and received for Swan's goods. On this side is entered all expense which I On this side are etitered all the siiins wnich have incurred on Swan's goods. [ the goods have produced The difference of the Dr. and Cr. goes to the credit of Swan's account. Moneys advanced on goods consigned, should be entered to the debit of the consigner's account, and not to the debit of the consignment-account. The account must be closed at the balancing of the Books, not regarding what is unsold. 17 Dr. Hartford Bank. Cr. This is kept the same as a Personal-Account. On this side is entered each sum deposited in On this side all sums drawn from the Hart- the Hartford Bank. i ford Bank. The difference of the Dr. and Cr. goes to the Balance-Account. 18 Dr. Profit and Loss. Cr. This account is kept as a synopsis of the gains and losses on the whole business, On this side are entered all the sums gained on the business. On this side are entered all losses sustained j in the business . The difference of the Dr. and Cr. of this account, showing the net gain or loss on the whole business, is carried to the proper side of the Stock- Account ; if a loss, on the Dr. side ; if a gain, on the Cr. side. 19 Dr. Loan-Account. Cr. The design of this account is to show the sums of money borrowed and lent. On this side enter all sums of money which you have lent, or paid, having been borrowed. On this side, enter all sums which you have borrowed, and all lent money which has been paid you. This account supersedes the necessity of trusting the memory with moneys lent, or of keep- ing memorandums of the same, which are liable to be mislaid or lost. What is the object of an account with Swan's Consignment ? What is posted to the Dr. side of that account 1 What is posted to the Cr. side of that account ? The same questions may be asked of the others. 84 LEDGER-ACCOUNTS EXPLAINED. 20 Dr. Suspense-Account. Cr. The design of this account is to show, at the close of the year, the amount of doubtful debts ; that is, those debts and notes which there is not much hope of collecting, but which you are un- willing to carry to the Profit and Loss-Account, until you learn something more decisive resx)ecting their payment On this, Dr. side, enter all such debts and On this,' Cr. side, enter all debts and notes of notes as come under the above description. the above description, as may have been paid It is not advisable, ordinarily, to transfer doubtful debts to the above account except at the balancing the Books, as something may transpire, in the mean time, which shall supersede the necessity of making such a transfer. In case that this is done, the account from which any amount is transferred to the Suspense-Account, is credited " By Suspense-Account," and the Suspense- Account is made Dr. to the account which has now been credited. 21 Dr. Collector of Customs. Cr. I The design of this account is to show the ariiount of bonds given at the Custom-IIouse for duties on goods imported. But as these bonds are in reality Bills Payable, an account of them should ordinarily be kept underthe title, "Bills Payable." 22 Dr. Debentures. Cr. The design of this account is to show the amount of bonds which the Custom-House has given you for the Drawback of duties on goods imported, when they shall have been exported according to law. On all Wares and Merchandise which have been imported, and on which duties have been paid, in case they are again exported, the Importers are entitled to a Bond from the Custom- House, for the amount jiaid on the same. There are certain restrictions in this Act, for which see Laws of the United-States, Vol. iv. page 396. TERMS OF CREDIT GIVEN TO THE IMPORTER, ON GOODS IMPORTED. All sums not exceeding $50, shall be paid immediately. On all Goods, Merchandise and Wares, the produce of the West-Indies, 3 for one half, and 6 calendar months for the other half, (salt ex- cepted, which is entitled to 9 months.) On all wines, 12 months; on all other Goods. Wares or Merchandise, (except salt and teas imported from Europe) 1-3 in 8 months, 1-3 in 10 months, and 1-3 in 12 months. On all Goods, Wares, and Merchandise, (other than wines, salt, and teas imported from any place than Europe and the West-Indies,) 1-2 in G months, 1-4 in 9 months, and 1-4 in 12 months from the date of each respective importation. The bond or bonds given shall include one or more sureties, to the satisfaction of the col- lector of the district where the said duties shall accrue. These bonds are to be paid in pre- ference to all other debts, in case the giver of these bonds becomes insolvent ; and the insolvent individual cannot assign his property to creditors, to seclude the claims of government on the bonds. What is the design of the Suspense- Account ? What is iwsted on the Dr. side of that account ? What is posted on the Cr. side of that account ? Let the same questions be asked on the other accounts. LEDGER-ACCOUNTS EXPLAINED. 85 Dr. Merchandise, Co. A. Cr. When two parties, not connected in their general business, buy goods to speculate upon, the party that takes the goods to sell, keeps an account, if it be the first speculation of the kind, under the head of " Merchandise, Company A." ; if it be the second speculation of the kind, un- der the head " Merchandise, Company B.," axid so on alphabeticalli/. The party that sells the goods, charges commission on the whole sales, as if he were not an owner. On this side is entered, first, the sum which On this side is entered the amount of all the the owner of the Books pays for his share of the sales, goods, and also every expense which is after- ward incurred on the same. At the close of the sales, the sum of the expenses, except the_^r5/ cost, is subtracted from the sum of the sales, and the remainder is divided with the other party, in proportion to his invest- ment. The account is then closed like the General Merchandise- Account. Suppose the owner of the Books, Samuel Hall, purchases goods with Samuel Colt, each one half, amounting to $9,450, and S. Hall takes the goods into his store to sell, each to share equally in the gain or loss. Hall pays for his half in his note, at 60 days, for $3,000, and cash, $1,725. Hall first sells to S. Porter a part of the above goods for cash, amounting to $1,732 50. Sold J. Brown, on his note at 30 days. Merchandise, Co. A., amounting to $3,000. When the account was closed, there were on hand goods un- sold, amounting to $8,000. Commission on sales, $236 62. Hall opens an account under the head Merchandise, Co. A., with other accounts necessary. 1st. Hall debited the Account, Co. A., with half the expense, that is, what he paid, $4,725. 2nd. He credits the account for the two sales, $4,732 50. 3rd. He debits the account for the commission, $236 62, on sales. 4th. He credits the account of S. Colt, for one half the now difference of the two sides, $2,247 94. 5th. He debits the account, Co. A., $2,247 94, which he cre- dited Colt's account with. 6th. He credits the account for his half the goods unsold, $4,000, Colt taking his half away, or leaving it for farther sales. 7th. He debits the account to Profit and Loss for the now dif- ference of the two sides, which is Hall's gain on the speculation. ] H 86 LEDGER-ACCOUNTS EXPLAINED. The following are the Ledger-entries which would necessari- ly grow out of such a Company- Account : Dr. Merchandise, Co. A. Cr, To Bills Payable, . . " Cash, " Commission, . . " Samuel Colt, . . " Profit and Loss, . 3,000 1,725 236 6 2,247 9 1,522 9- 2 4 1 V By Cash, . . " Bills Receivable, . " Balance, .... 1,73S 3,00C 4,000 150 00 00 50 8,732 5 8,732 ' ' Dr. Cash. Cr. ToMd8e.,Co.A., . . 1,732' 5 )i By Mdse., Co. A., . . 1,725 00 Dr. Bills Payable. Cr. I , By Mdse., Co. A., . . 3,000 00 Dr. Bills Receivable. Cr. To Mdse., Co. A., . . 3,000 0( ) Dr. Samuel Colt. Cr. 1 By Mdse., Co. A., . . 2,247 I 94 Dr. Profit and Loss Cr. By Mdse., Co. A., . , 1.522 94 Dr. Commission. Cr. By Mdse., Co. A., . 236 S2 ON OPENING BOOKS The process of opening a set of Books, being considered pecu- liarly difficult, I propose to answer some of the questions which are frequently asked, and anticipate others which may suggest themselves to the mind of the learner. There is not, however, so much mystery in this part of Book-keeping, as many appre- hend, and I attribute the many interrogations on this point to the fact that no writer on the science of Accounts, has definitely enough pointed out the why and wherefore. It may be well to remark in the outset, that the Stock-account personifies the mer- chant who owns the Books. He says, I, (Stock) credit myself with all that I carr}^ into business, and debit myself with all that I owe. Some writers on this subject, reconmiend that each partner should first be debited " To Stock," for the sums which they respectively subscribe, and Stock be credited " By Sundries," for the aggregate subscriptions. And when the subscriptions are paid, each partner is credited " By Cash," for the amount he pays in, (or any goods which he may furnish) and debit the Cash (or Merchandise) account to the partner who pays it. The better mode is to open the Ledger-accounts as if there were one person in trade, and enter the respective investments to the credit of each partner's account in the Private -Ledger. See Private-Ledger, 3d Set. When it is necessary to open a new account, it need not be done with ink at the time, but in pencil mark. The posting may be done under such heads till some favorable opportunity, when they may all be written out neatly in ink. 88 ON OPENING BOOKS. EXAMPLE 1. Suppose you have, on commencing business, a capital of $13- 000, of which $5,000 is in Merchandise, and $8,000 in Cash, how would you open your Books ? Ans. By crediting Stock By Sundries^ $13,000, and debiting CashT'o>S^ocyfc,$8,000and debiting Merchandise To Stock, $5,000. Thus, Dr. Stock. Cr. ■ By Sundries, . . . 13,000 00 Dr. Cash. ; Cr. To Stock, .... 8,000 00 Dr. Merchandise. Cr. To Stock, . . . • 5 000 00 EXAMPLE II. Suppose you have the above capital, (as in exam.ple 1st.,) but owe on your notes $2,000, how would you open your Books ? Ans. In the same manner (as in example 1st.,) except you will debit Stock To Bills Payable, $2,000, and credit Bills Payable By Stock, $2,000. Thus, ON OPENING BOOKS. Dr. Stock. Cr. To Bills Payable, . . 2,000 00 By Sundries, .... 13,000 00 Dr. Cash. Cr. To Stock, ... 8,000 00 Dr. Merchandise. Cr. To Stock, 5,000 00 Dr. Bills Payable. Cr. By Stock, . . ... 2,000 1 00 example III. Suppose you assume Example 2nd, with an addition of the capital, $3,000 of Connecticut River Bank-Stock, and also a debt which you owe to William H. Imlay, $1,000, how would you open your Books ? Ans. As in Example 2nd, except you debit Connecticut River Bank-Stock, " To Stock," $3,000 ; debit Stock " To Sundries," $3,000; credit Wm. H. Imlay "By Stock," $1,000; and credit Stock "By Sundries," $16,000. 12 H* 90 ON OPENING BOOKS. . .. Dr. Stock. , Cr. To Sundries, .... 3,000 00 By Sundries, . . . 16,000 00 Dr. Cash. Cr. ' To Stock, 8,000 0( ) Dr. Merchandise. Cr. To Stock, 5,000 1 Dr. Bills Payable. Cr. By Stock, 2,000 00 Dr. Connecticut River Bank-Stock. Cr. . To Stock, , J . 3,000 \ 1 i \ 1 ^ ! II Dr. William H. Imlay Cr. By Stock, 1,000 00 GN OPENING BOOKS. 91 i:XA.MPLE IV. Suppose a man commence business under the following circum- stances, viz : He having no capital, borrows on his notes, $20,000, of which he expends $10,000 for Merchandise, and the remain- der is cash. How does he open his Books ? Ans. He debitsCash "ToStock," $10,000; debits Merchandise " To Stock," $10,000, and Stock " To Bills payable," $20,000 ; credits Stock " By Sundries," $20,000, and credits Bills Payable " By Stock," $20,000. D7\ Stock. Cr. To Bills Payable, . . 20,000 00 By Sundries, .... 20,000 00 Dr. Cash. Cr. To Stock, 10,000 00 1 Dr. Merchandise. Cr. To Stock, 10,000 00 ■ Dr. Bills Payable. Cr. By Stock, .... 20,000 00 Here is an equal amount on the Dr. and Cr. side of the Stock account, showing you that the merchant owes as much as he car 92 ON OPENING BOOKS. ries into business, and his Cash and Merchandise-accounts show in what his property is, and Bills Payable-account shows where the debit is. EXAMPLE V. Suppose a merchant commence business under the following circumstances, viz : He has a capital of $20,000, $6,000 of which is in Merchandise, which he bought of A. King & Co., New- York, at six months credit ; his store, valued at $8,000, for which he has given his note, and the balance, $6,000, is in cash. How would he open his Books ? Ans. He debits Stock, $14,000; Cash, $6,000; Real-Estate, $8,000 ; and Merchandise, $6,000. Credits Stock, $20,000; Bills Payable, $8,000, and A. King & Co. $6,000. Dr. Stock. Cr. > To Sundries, . . . 14,000 Ot By Sundries, .... 20,000 00 Dr. Cash. Cr. To Stock, 6,000 5 > Dr. Real-Estate. Cr. To Stock, 8,000 Dr. Bills Payable. Cr. ' By Stock, 8,000 00 ON OPENING BOOKS. 93 Dr. Merchandise. Cr, To Stock, 6.000 00 1 Dr. A. King & Co. Cr. By Stock, .... 6,000 00 EXAMPLE VI. If three men commence a business as follows, viz : A, brings into the business $8,000, in Merchandise ; B, $5,000 in Cash, and C, $7,000 in notes which he holds against sundry individuals — How would they open their Books ? Thus, Dr. Stock. Cr. By Sundries, . . . , 1 20,000 00 Dr. Merchandise. Cr. To Stock, 8,000 OC ) Dr. Cash. Cr. To Stock, 5,000 0( ) 94 ON OPENING BOOKS. Dr. Bills Receivable. Cr. To Stock, 7,000 00 Taking Examples 6th, of A, B, and C, how would they open their Private-Ledger ? Ans. They would debit Stock " To Sundries," $20,000, and credit A, " By Stock," $8,000 ; credit B, " By Stock," $5,000 ; credit C, " By Stock," $7,000. Dr. Stock. Cr. To Sundries, .... 20,000 00 Dr. A. Cr. ^ By stock, 8,000 00 Dr. B. Cr. By Stock, 5 000 00 Dr. C. Cr. t By Stock, . . . . . 7,000 00 INTRODUCTORY EXERCISE. When 'the learner has committed to memory or carefully studied the foregoing explanations of the Ledger-accounts, he should be practiced in examples like the following. The Journal-entries and dates are here omitted, that the pro- cess of opening, posting, and closing, or making equal several accounts, may be, as far as possible, simplified and brought with- in the comprehension of the merest tyro. Thus — 1st. If you begin business with a capital of $8,000, in cash, what accounts in the Ledger are affected ? Ans. Cash is debited " To Stock," $8,000, and Stock is Cr. " By Cash," $8,000. 2nd. If you buy Merchandise on your note for $4,000, what accounts will be affected ? Ans. Merchandise is Dr. " To Bills Payable," $4,000, and Bills Payable Cr. " By Merchandise," $4,000. 3rd. If you sell Merchandise to Brown & Parsons, on account, $3,000, what accounts are affected ? Ans. Brown & Parsons are Dr. " To Merchandise," $3,000, and Merchandise Cr. " By Brown & Parsons," $3,000. 4th. If you buy Merchandise for cash, $2,000, what accounts are affected ? Ans. Merchandise is»Dr. " To Cash," $2,000, and Cash is Cr. " By Merchandise," $2,000. 5th. If you sell Savage & Stockbridge, Merchandise for $4,000, on their note, at 60 days, what accounts are affected ? Ans. Bills Receivable is Dr. "To Merchandise," $4,000, and Merchandise Cr. " By Bills Receivable," $4,000. 6th. If the Connecticut River Bank discounts,the above bill, $4,000, paying you cash, $3,960, and retaining the discount, $40, what accounts are affected ? Note— The student may be required to write out and journalize the above transactions on a black-board, slate, or paper, in the same form that they would be recorded and journalized, in actual business. 96 INTRODUCTORY EXERCISE. Ans. Cash is Dr. " To Bills Receivable," $3,960, and Profit and Loss are Dr. " To Bills Receivable," for the discount, $40, and Bills Receivable is Cr. "By Sundries," $2,000. On this and the following page, will be seen all the foregoing sums carried to their respective accounts, and each account is closed, exhibiting a Ledger in miniature. The credit side of the Merchandise -account is the greatest by one thousand dollars; consequently, you have realized $1,000 more than the expense, which is transferred to the credit of Profit and Loss. You lost, on the discount of Savage & Stockbndge's note, $40, which is carried to Dr. of Profit and Loss- account. The difierence of the two sides of Profit and Loss is $960, which, being the net gain on the business, is carried to the Cr. side of the Stock-account. The net gain, $960, added to $8,000, which you were worth when the accounts were opened, shows your present worth to be $8,960. The Balance-Account shows on the Dr. side that you Jiave $9,960 in cash, $3,000 in a debt owing you by Brown & Parsons, and on the Cr. side $4,000, which you owe on a note, which subtracted from $12,960, leaves $8,960 your present property. This example and explanation may appear puerile to the skill- ful accountant, yet the beginner will find in them much that is in- structive, and if carefully examined, will impart to him more information than he could obtain from any other source in the same time. Dr» Stock. Cr. To Balance, .... 8,960 8,960 00 00 By Cash, Profit and Loss, . . . 8,000 96J 8,960 00 00 00 Dr. Cash. Cr. • To Stock, " Bills Receivable, . 8,onr 3,960 11,960 00 00 By Merchandise, . . " Balance, .... 2,000 9,960 11,960 00 00 00 INTRODUCTORY EXERCISES. 97 Dr. Merchandise. Cr. To Bills Payable, . " Cash, " Profit and Loss, . 4,000 00 2,000 00 1,000 (10 7,000 00 By Brovra & Parsons, . " Bills Receivable, , 3,000 00 4,000 00 7,000 00 Dr. Profit and Loss. Cr. To Bills Receivable, . ♦' Stock, 40 0( 960 01 ( 1,000 0( ) ) ) By Merchandise, . . 1,000 00 1,000 00 Dr. Bills Receivable. Cr. To Merchandise, . . 4,000 (K ) By Sundries, .... 4,000 00 Dr. Bills Payable. Cr. To Balance, .... 4,000 0{ ) By Merchandise, . . 4,000 00 Dr. Brown & Parsons. Cr. 1 To Merchandise, • . a,000 00 By Balance, .... 3,000 00 Dr. Balance. Cr. To Cash, " Brown & Parsons, . 9,960 OC 3,001 OC Effects. Debt. By BiUs Payable, . . 4,000 00 12,960 OC 4,000 OC * 8,960 01 * Net property, equaling the balance of Stock-account. 13 REMARKS ON BOOKS, SET I. Books, Set 1st., contains a record of such transactions as must occur in almost every Merchant's and Tradesman's business. The Cash and other transactions are recorded together on the Day-Book, so that the whole business of the Merchant appears on this book, and of course, each entry is journalized before posting. Although the Merchant generally keeps a C ash-Book, it is in many cases omitted, as the omission is thought to render the pro- cess of making the Journal-entries and posting more simple than to have tw^o books contain the same business. As it is the design of the author to render this set of books as simple as may be, and to illustrate clearly the principles involved in Double-Entry, every thing not absolutely necessary is omitted. Each individual, who copies, journalizes, posts, and takes the Balance-Sheet, should consider the business his own — that he starts his business with the capital there specified — that he considers each record there made, as made by himself and not pass over it till he fully compre- hends it — that he takes the Balance-Sheet as if he were collecting the items of his own property, at the close of his business, or at any given period. The Day-Book shows, in an historical form, a statement of the Merchant's property and debts in beginning business, and all the transactions supposed to occur in one month. All the brevity which is consistent with perspicuity, is exhibited in the Day- Book. Every transaction recorded on the Day-Book has deduced from it two or more Journal-entries, which are placed in the Dr. and Cr. columns of the Journal. From the Journal, each of the entries is posted to its respective account in the Ledger, which is the final transfer, and where all of the same kind may be found together. DAY-BOOK AND JOURNAL. Set II, DOUBLE-ENTRY. G. ROBINS, JuN. 100 DAY-BOOK SET 1] Hartford, January \st, 1838. Inventory of my effects and debts on com- mencing business. 1 have Cash, " Merchandise, . . Belknap & Hamersly, owe me on account, . I have due me on notes, as per Bill-Book, . ■1st., I owe as follows, viz : Sundry persons on notes, per Bill-Book, Hampshire Manufacturing Co., . . . 2nd.,- Sold Spalding & Storrs, on account. Mer- chandise, per Sales-Book, page 1, . . •4th.,- Sold D. F. Robinson & Co., for Cash, Merchandise, per Sales-Book, page 2, 4th., Bought of Reed & Barber, on account, Merchandise, per Invoice-Book, page 1, 5th., Bought of S. Spencer & Co., for Cash, Merchandise, per Invoice-Book, page 3, 9th., Sold P. Dickinson, Merchandise, per Sales- Book, page 2,. $2,500. Received in payment his note at 60 days, 10th., Bought of Jas. S. Folger, Merchandise, per Invoice-Book, $800. I gave him, in payment, my note at 20 days 7,000:00 5,00000 1,50000 6,000,00 1,70000 70000 19,500 2,400 800 2,000 3,000 5,000 2,500 00 00 00 00 00 00 00 80000 36,00000 Note. — The teacher may profitably give one or two pages of the Day-Book entries, to his class, for a lesson, and, when they come together to recite, let him read over these entries, and the pupils may tell him how they are Journalized, and why they are thus Journalized. JOURNAL SET I. 101 Dr. Hartford, January \st, 1838. Cr. 1] Jan. 1 Cash, ..... Merchandise, . . . Belknap & Hamersly, Bills Receivable, Stock, Stock is debited for the a- mount of tlie Merchant's debts. Spalding &. Storrs, . . The person whom you trust is debited. Cash, Cash is made Dr. when you receive cash. Nferchandise, Merchandise, Merchandise is made Dr. when you purchase it. Bills Receivable, Bills Receivable are made Dr. when they are received. Merchandise, 7,00000 5,00000 1,50000 6,00000 2,400 80000 2,00000 ,000 00 5,000 00 2,50000 80000 Stock, Stock is credited for the amount of property invested Bills Payable, . . Hampshire Manu. Co. 36,00000 Merchandise, Merchandise is made Cr. when you sell it. Merchandise, Merchandise is credited when you sell it^ Reed & Barber, Cash, Cash is made Cr. when y ou part with cash. Merchandise, BiUs Payable, Bills Payable are made Cr, when you part with your note. 19,500 1,70000 700 2,000 00 3,000 5,000 2,500 00 00 00 00 00 00 36,00o|o0 Note.— The sums entered in the money-column of the Day-Book, and the Dr. and Cr. co- lumn of the Journal, are equal to each other when added, if there is no mis-entry. See the footings of each page. This process is useftil in finding mistakes. 102 DAY-BOOK SET I. 4. ' 2] Hartford, January llth, 1838. 1 have exchanged notes with Chauncy How- ard, for our mutual accommodation, each drawn at 4 months, for 12th.,- The Hartford Bank has discounted the note received from Howard, $3,000, I hav£ received in Cash, Discount off, .......... 14th.,- Shipped by the Hero, , Kellogg, master, to Charles Shepard, New-Orleans, 500 bales Cotton Check, to be sold on my account, and returns, . . • Passed my note to the Hartford Insurance Co. for premium and policy on the same, Paid charges in Cash, -15th. Sold Burt & Townsend, Merchandise,* $800 Received in payment, Cash, .... and his note for the balance, drawn at 90 days, with interest added, .... 16th. Received by the Ann, from London, an in voice of Silk goods, consigned to me by J. Burt, to be sold on his account, per S B. page 4th., $7,000. Paid Custom-House duties in Cash, . . Charges for freight, &c. in Cash, . . 18th., Sold Howe, Mather, & Co. a quantity of Burt's goods, per Sales-Book, page 4 $5,000. Received in payment their note at 60 daj'-s, which the Phcenix Bank has discounted on my account. Cash received, Discount allowed, 2,920 80 4,500 50 30 300 507 900 200 4,95000 50,00 3,000 00 3,000 00 4,580 00 807 1,100 5,000 17,487,50 50 00 JOURNAL SET I. KOS Dr. Hartford, January lU/«, 1838. Cr. [2 1838 Jan. 11 " 12 " 18 Bills Receivable, . . . Cash, Profit and Loss, .... Profit and Loss, or Inter est, is made Ur. when you al low discount. Sliipment to New-Orleans, . When you ship goods to New- Orleans, to be sold on your account, Adventure to New-Orleans is Dr. to the whole expense. Cash, . . . Bills Receivable. J. Burt's Consignment, When a person sends goods to me to be sold on his ac- count, his Consignment is made Dr. for all money I pay on them. Cash, . . .. Profit and Loss, ,000 2,920 80 4,580 1,100 4,95000 50 117,487 00 Bills Payable, Bills Receivable, This amount is posted in the Ledger at the Cr. side of Bills Receivable. Merchandise, Bills Payable. Cash, . . Merchandise, Interest, Interest is made Cr, when you receive interest money Cash, This amount is posted in the Ledger, at the Cr. side of Cash. Burt's Consignment, Burt's Consignment is made Cr. when I sell any of Burt's goods. 3,00000 3,00000 4,50000 50 00 SOiOO 800 1,100 5,00000. 17,487 50 104 DAY-BOOK SET I. 7f^ >iM- Aak4 ' 3] Hartford, January^ 20?A, 1838. Bought of T. Brainard, for Cash, 3 tons Bea- ver-Meadow Coal, ® $9, -21st.,- Sold Brown & Parsons, Merchandise, per Sales-Book, page 4th., 23nd., Bought of E. W. Bull, for Cash, one Build- ing-Lot on Spring-street, •25th.,- Received from C. Shepard, an Account-Sales of Merchandise, shipped to him per the Hero, on Jan. 14th., T^et proceeds, 26th.,- Sold John Olmsted & Co., the remainder of Burt's goods, for $4,000, Received in payment their note, -Q) 60 days, for Balance in Cash, . . . 26th., Sold D. W. Clark, for Cash, O 3 per cent, premium, a Draft at sight on Charles Shepard, New-Orleans, for Premium received on the same, . . . . 27th., I have sent for collection, to J. Humphrey, Esq., New-York, a Note which I received from J.' Prince of that place, December 8th., 1 000 3 000 5,000 150 27 1,500 1,200 5,000 4,000 5,15000 00 00 00 00 00 2,00000 18,87700 JOURNAL — SET I. 105 Dr. Hartford, January 20th, 1838. Cr. [3 Jan. 20 25 26 Charges Charges are made Dr. when you are at any expense under that head. Brown & Parsons, Real Estate, eal-Estate is made Dr. whenever you purchase any real-estate. Charles Shepard, . . . . When the Consignee advi- ses you how much your goods have sold for, you make him Dr. for the net proceeds. Bills Receivable, Cash, ... 26 Cash, *• 27 James Humphrey, 27 00| 1,50000 1,20000 5,00000 1,000 3,000 5,150 2,000 18,877 00 Cash, Merchandise, Cash, Shipment to New-Orleans, When you hear for how much your shipment has sold, you Cr. that account for the amount. Burt's Consignment, . . Charles Shepard, Profit and Loss, . This amount, $150, is post- ed in the Ledger at the Cr, side of Profit and Loss. Bills Receivable, 2700 1,50000 1,20C 00 5,00C 4,000 5,000 150 2,000 00 18,877 00 106 DAY-BOOK SET I. 4] Hartford, January 2^th, 1838. I have this day made up an Account-sales of the Goods consigned to me to sell by J. Burt. The whole amount of sales $9,000. My Commission on the same,^ 2 per cent Storage and Advertising, Net proceeds to J. Burt's credit, .... 30th. Paid, in Cash, my note, passed to Jas. S Folger, onthe 10th., ■ 30th., James Humphrey, New- York, has received payment on the note sent him on the 27th., and has remitted me a check on the Hart- ford Bank, Commission out, 31st.,- I have accepted J. Burt's draft on me, at 60 days sight, $7,900, being the net amount of his sales, 31st., Sold at 6 months credit, to W. H. Imlay, my building-lot on Spring-street, for . . . 31st., >/ I have received Reed & Barber's note, pay- able f?) 60 days, for 3 1 St., Gave Andrus, Judd & Franklin, an order on Brown & Parsons, for 400 Harris' Book Keeping, ^90, 180 00 1000 7,710 00 1,99000 10 00 7,900 800 00 00 2,000 7,900 1,400 3,000 360 23,360 00 00 00 00 00 00 JOURNAL SET I. 107 Dr. Hartford, January 29th, 1838. Cr. [4 Jan. 29 J. Burt'a Consignment, This amount is posted in the Ledger, at the Dr. side of Burt's Consignment. Bills Payable, Cash, Charges James Burt, This amount is posted, in the Ledger, at the Dr. side of Bu rt's account. Wm. H. Imlay, "31 "31 Bills Receivable, Andrus, Judd & Franklin, 7,90000 800 7,90000 1,400 3,000 360 00 23,36000 Commission, . Profit,and Loss, James Burt . James Humphrey, Bills Payable, Real-Estate, Reed & Barber, This amount is posted in the Ledger, at the Cr. side of Reed & Barber's account. Brown & Parsons, 180 IC 7,71 C 2,0UC 00 7,900 1,40C 3,000 00 36000 23,360 108 DAY-BOOK SET I. 5] Hartford, January "ilstj 1838. r Sold Reed & Barber, Merchandise, as per Sales-Book, page 5, -31st., I have paid my Clerk, John Brown, his sa lary in Cash, taking his receipt for the Memorandum. Merchandise unsold, per Inventory, taken Jan. 31st., 1838, amounts to $1,000. 2,000 30000 2,300 00 00 JOURNAL SET I. 109 Dr. Hartforp, January ^\st, 1838. Cr. [5 1838 Jan. 31 Reed & Barber, Charges, 2,000 30000 2,300 00 Merchandise, Cash, 2,00000 30000 2,30000 K TO OPEN AND CLOSE A SET OF BOOKS 1st. Construct the books on which the original entries are made. 2nd. From the books of original entry, make your Journal ; and in case your Journal is arranged like Journal Set I., add the Dr. and Cr. columns, as in that book. 3rd. Open an account on your Ledger with the name of every person and thing which appears on the Journal. 4th. Post each sum from your Journal, (as in Set L) or from your Journal and Cash-Book (as in Set IIL) to your Ledger. 5th. Compare the sums on Journal with those transferred to the Ledger, to see that they are correct. 6th. Take the Trial-Balance according to direction on page 119. 7th. Transfer the amount of Private-Account, (as in Set IL) or the Partners- Accounts (as in Set III.) to the Dr. side of the Stock- Account. 8th. Take the Profit and Loss-sheet, according to direction on pages 121, the Dr. column of which must show the losses and the Cr. side the gains on the business. 9th. Take the Balance-sheet, per direction on page 1 24, the Dr. side of which must show your effects, and the Cr. side your liabilities. 10. Equihbrate the accounts in the Ledger, per direction on page 128. 11. Bring down the balance^ as in Set IIL, or make a new Ledger, (see page 38.) The foregoing directions may aid some who understand the above steps, without knowing the order in which they come. LEDGER, Set I. DOUBLE-ENTRY. G. ROBINS, JuN. ALPHABET. Andrus, Judd & Franklin, . 6 B. Belknap & Hamersly, . . .4 Bills Receivable, .... 3 Bills Payable, 3 Brown & Parsons, .... 5 Burt, James, 6 C. Cash, 3 Charges, 2 Commission, 2 Consignment, Burt's, ... 4 H. Hampshire Manufacturing Co., 4 Humphrey, James, .... 5 I. Imlay, Wm. H 6 Interest, 1 M. Merchandise, 1 P. Profit and Loss, 2 R. Real-Estate, 1 Reed & Barber, ..... 5 S. Shepard, Charles, .... 5 Shipment to New-Orleans, . . 2 Spalding & Storrs, .... 4 Stock, 1 The Merchant has a separate book, called an Alphabet, for entering the name of each account which he opens on his Ledger. One or more pages are devoted to the names which begin with the letter A , one or more for those which begin with B, &c. With the name and page of each account on this book, the Book- keeper, after Journalizing, may page-mark each item on the Journal, so that in posting he may turn from the Journal to the account in the Ledger, without looking to the Alphabet to find the page. Where a large business is done at home and abroad, the trader may find it to his advantage to have several Ledgers ; as one for the city, one for the western, and one for the southern trade. LEDGER SET I. or 113 Dr, Stock. Cr. 1838 Jan. 1 " 31 To Sundries, " Balance, 2,400 18,900 21,300 Jan. 1 " 31 Feb, By Sundries, . . " Profit and Loss, By Balance, 19,500 1,800 21,300 00 50 50 18,900 50 The Dr. column of this account shows how much the Merchant owes, and the Cr. column how much property the Merchant has invested in liis business. The balance of the Dr. and Cr. column is his Net Property. Dr. Merchandise. Cr. Jan. To Stock, . . " Reed «fc Barber, " Cash, ... " Bills Payable, " Profit and Loss To Balance, , 5,000 00 Jan. 2 1 3,000 00 " 4 1 5,000 00 " 9 1 800 00 " 14 1,300 00 " 15 " 21 " 31 15,100 00 1,000 00 By Spalding & Storrs, " Cash, " Bills Receivable, . " Ship't. to Orleans, " Sundries, . . . " Brown & Parsons, " Reed & Barber, . " Balance, . . 2,000 2,500 4,500 800 1,500 2,000 1,000 15,100 Feb. The Dr. side of this account shows how much the Merchandise has cost, and the Cr. side how much it has sold for. The difference of Dr. and Cr. is the gain or loss, Dr. Real-Estate. Cr. Jan. 23 " 31 To Cash, .... " Profit and Loss, 1,200 200 1.400 Jan. 31 By Wm. H. Imlay, . 1,400 1,400 00 The Dr. side of this account shows how much Real-Estate has cost, and the Cr. side how much it has sold for. The difference between Dr. and Cr. is the gain or loss. Dr. Interest. Cr. Jan. 31 To Profit and Loss, 7 50 Jan. 15 By Sundries, ... 2 7 50 The Dr. side of this account shows how much has been paid out, and the Cr. side how much has been received for interest. The difference of the two sides is transferred to the Profit and Loss-account. I 15 K* 114 LEDOER SET I. Dr. Shipment to New-Orleans. Cr. Jan. 14 ' 31 To Sundries, . . " Profit and Loss, 4,580 00 45:0 00 5,000 1 00 Jan. 25 By Charles Shepard, 5,000 5,000 The Dr. side of this account shows the whole expense incurred in sending goods to New-Or- leans on your own risk, and the Cr. side how much you have realized on the sales. Tlie dif- ference between the Dr, and Cr. side, when tlie goods have been sold, goes to the Profit and Loss-Account. When no sale has been made, the difference goes to the Balancc-Sheet. Dr. Commission. Cr. i&Q. 31 To Profit and Loss, . 2 180 00 Jan. 29 By Burt's Consignm't. 4 180 00 The Dr. side of this account shows how much has been paid for Commission, and the Cr. side how mUch has been i-eceived for Commission. The difference between Dr. and Cr. go?s to Profit and Loss. Dr. Profit and Loss. Cr. 1838 Jan. 12 " 18 " 31 To Bills Receivable, . " Burt's Consignm't. " Charges, . . . " Stock, . . . . 2! 2 1 80 00 50 00 337 00 1,800 50 2,267 50 Jan. 26 " 29 " 31 (1 <( By Cash, "' Burt's Consignm't. " Real Estate, . . " Interest, . . . . " Ship't. to Orleans, " Commission, . . " Merchandise, . . 150 00 10 00 200 1 00 7!50 420.00 180 00 1,300 00 2,267 50 The Dr. side of this account shows how much loss has been sustained on the business, and the (Jr. side shows how much has been gained on the business. The difference between the Dr. and Cr. goes to Stock, being the net gain or loss on the business. Dr. Charges. Cr. 1838 I Jan. 20 To Cash, J. Humphrey, 31 Jan. 31 By Profit and Loss, 337 337 1 00 The Dr. side of this account shows how much has been expended under the head of charges, and the Cr. side how much has been received under that head. The balance of the Dr. and Cr. is transferred to Profit and Loss. LEDGER SET 1. 115 Dr. Cash. Cr. 1838 Jan. 1 " 4 " 12 " 15 » 18 To Stock, . . . . " Merchandise, . . " Bills Receivable, . " Sundries, . . . " Burt's Consignm't. " Sundries, . . . " J. Humphrey, . . 1 7,000 00 Jan. 5 1 2,000 00 " 14 2 2,920 loo " 16 2 300 00 '« 20 2 4,950 00 " 23 3 3,000 00 " 30 3 5,150 00| " 31 4 1,990 OOj 27,310 00 18,853 00 5ho\ vs the re ceij )ts, and th By Merchandise, . . " Ship't. to Orleans, " Burt's Consignm't. " Charges, . . " Keal-Estate, " Bills Payable, " Charges, "Balance, . . 5,000 30 1,100 27 1,200 800 300 18,853 00 27,310 To Balance, The Dr. side of this account shows the receipts, and the Cr. side the payments of cash. The difference between the Dr. and Cr. column, shows the amount of Cash in hand, and is transfer- red 10 the Balance-sheet. The Cr. side of the Ca.sh- Account can never be the largest, for no more money can be spent than has been received. Dr. Bills Receivable. Cr. 1838 1 Jan. 1 9 « 11 (( 15 " 20 " 31 Feb. 1 To Stock, . . " Merchandise, " Bills Payable, " Sundries, " Burt's Consignm't. " Reed & Barber, * 16,007 50 To Balance, 1 1 6,000 00 Jan. 12 1 2,500 00 " 27 1 3,000 00 " 31 2 507 50 3 1,000 00 4 3,000 00 16,007 50 11,007 50 By Sundries, . " J. Humphrey, " Balance, , . *5,000 00 3,000 2,000 11,007 The difference between the Dr. and Cr. side of Bills Receivable, goes to the Balance-sheet. The Cr. side of Bills Receivable cannot be the largest, unless there has been a mistake, for no more notes can be parted with than have been received. Dr. Bills Payable. Cr. 1838 Jail. 30 " 31 To Cash, . Balance, 12,650 13,450 Jan. 1 " 10 " 11 " 14 " 31 Feb. 1 By Stock, " Merchandise, . . " Bills Receivable, . " Shipm't. to Orleans, " J. Burt By Balance, 1,700 800 3,000 50 7,900 00 13,45'J 12,650 The Dr. column of this account shows how many of the merchant's notes he has paid, and the Cr. column shows what notes he has issued ; that is, given to others. The balance of the Dr. and Cr. columns, is the amount the merchant still owes on notes. The Dr. side of Bills Payable can never be the largest, unless there is a mistake, since no more notes can be redeemed than have been issued. * In making the Trial-Balance, the Book-keeper may take the footings of the Dr. and Cr. co- lumns directly to the Trial Balance-sheet, or foot on the folio, in pencil-mark, as above, before transferring the amount to that sheet. The above method, perhaps, has the preference. 116 LEDGER SET Dr. Burt's Consignment. Cr. 1838 j Jan. 16 To Cash, . 29 *' Sundries, 1,100 7,900 9.000 Jan. 18 Jan. 26 By Sundries, " Sundries, 5.000 '00 4.000 00 9,000 00 This account shows, on the Dr. side how much expense has been incurred on the goods which are consigned to you, to sell for Burt ; and the Cr. side how much those goods have sold for. The difference between the Dr. and Cr. columns is transferred to Burl's personal-account. Dr. Hampshire Manufacturing Company. Cr. Jan. 31 To Balance, 700 Jan. 1 Feb. 1 By Stock, By Balance, This is treated like a person^s account. Dr. Belknap & Hamersly. Cr. 1838 Jan. 1 Feb. ] To Stock, . " To Balance, 1,500 1,500 Jan. 31 By Balance, 1,500 The Dr. side of this account shows how much Belknap & Hamersly owe the owner of the Books, and the Cr. side how much the owner of the Books owes them. The same is true of all Fer^ons'-Accounts ; consequently, no remarks will be made on the following. Dr. Spalding & Storrs. Cr. 1838 Jan. 2 Feb. 1 To Merchandise, To Balance, . . 800 Jan. 31 By Balance, . 800 LEDGER SET X. 117 Dr. Reed & Barber. Cr. 1838 Jan. 31 To Merchandise, " Balance, al 2,000 00 Jan. 4 1 4,000 00 "31 1 6,000 00 1 Feb. 1 By Merchandise, . " Bills Receivable, By Balance, 4 1 3,000 3,000 6,000 _4,000 Dr. Brown & Parsons. Cr. 1838 Jan 21 Feb. 1 To Merchandise, To Balance, . 1,500 2,500 00 TTho M Jan. 31 By Andrus, Judd, &> Franklin, . . . . 360 1,140 1,500 Dr. Charles Shepard. Cr. Jan. 25lTo Shipm'ttoOrleans, ^ 5,000 00 Jan. 26 By Cash . 3 i 5,000 00 Dr. James Humphrey. Cr. Jan. 27 To Bills Receivable, 2,000 00 Jan. 30 By Sundries, 2,000 \ 118 LEDGER SET I. Dr. James Burt. Cr. 1838 Jan. 31 To Bills Payable, To Balance, . . 7,900 7,900 i90 Jan. 29 " 31 By Burt's Consignm't. " Balance, . . , . 7,710 190 ,900 00 Dr. W. H. Imlay. Cr. Jan. 30 Feb. 1 To Real-Estate, To Balance, 1.400 1,400 Jan. 31 By Balance, ,400 00 Dr. Andrus, Judd &c Franklin. Cr. Jan. 31 Feb. ] To Brown & Parsons, To Balance, . . . 360 360 Jan. 31 By Balance, 00 TRIAL-BALANCE. 119 Dr. Trial-Balance. Cr. Stock, . . . Cash, . . . BillsReccivable, Bills Payabie, Merchandise, Real-Estate, . Interest, . . Charges, . . Ship't. to New-Orleans Commission, . . , Profit and Loss, . Hampshire Manu. Co Belknap & Hamersly Spalding & Storrs, , Reed «fc Barber, . Brown & Parsons, J. Burt, .... Wm. H. Imlay, Andrus, Judd & Franklin, ... 2,400 27,310 16,007 80(» 13,800!00 1,200 00 33700 4,58000 13000 1,500 00 800;00 2,00000 1,500,00 7,900 00 1,400;00 82,024 [50 Inner. 18,853 11,007 337 1,500 800 1,140 190 1,400 360 35,567 50 Inner. 17,100 12,650 300 200 420 180 30 700 4,000 19,500 8,457 5.000 00 13, 14,100 1,400 5,00000 18000 16000 70000 6,000 360 7,710 35,587 50 82,02450 Note.— On the right and left hand outer columns will be found the footings of the Dr, and Cr. side of each account in the Ledger. On the right and left hand inner columns will be | found the difference between the footing of each account in the Ledger. £i^Aer process will prove whether the items have been correctly posted to the Ledger. QUESTIONS ON A TRIAL-BALANCE. What is the design of the Trial-Balance? It is taken to ascertain whether the amounts on the Journal have been correctly posted on the Ledger. You know according to the principles of equilibrium, that the amount of every transac- tion in trade has two or more distinct entries in the Ledger ; that is, there must be as many dollars and cents posted on the Dr. side of the Ledger as there are on the Cr. side. For example ; if you bay of John Olmsted & Co., for cash, merchandise to the value of $500, you post $500 at the Dr. col- umn of the Merchandise-account, and also $500 at the Cr. column of the Cash- Account. Again, if you buy of Hills & Bolter, merchandise, amounting to $600, one half for cash and the other half on account, you would post $600, at the Dr. side of Merchandise ; and $300 at the Cr. of Cash, and $300 at the Cr. of Hills & Bolter's account, in the Ledger. Thus, you perceive in either case, you have an equal amount on each side of the Ledger. Hence, after a month's or year's posting, if you add the Dr. side of each account in the Ledger (in pencil-marks) and the Cr. side of each account, the sum of the Dr. entries will be equal to the sum of the Cr. entries, if the Books have been correctly posted. 120 / TRIAL-BALANCE. I now comprehend entirely the design and process of finding these amounts, but what shall I do with them when obtained ? I You will take a sheet of paper, ruled with double money-co- 'lumns and write on the left hand of it the name of each account which is opened on the Ledger and then you will place the foot- ing of each account against its name on this sheet, the sum of the Drs. in the Dr. column, and the sum of the Crs. in the Cr. column of this sheet. Suppose the Dr. and Cr. columns of the Trial-Balance sheet do not foot up alike ? The error of course must be ferreted out. It may be in the adding on the Ledger, or it may be that you have taken wrong amounts from the Journal. The mistake in any case, should be Ifound, if it be no more than one cent. I The balance should be taken once in the week or month, de- fending upon the extent of the business. At the close of each week or month, the footing may be placed at the side of the money column, in pencil-mark and remain there. These footings may be entered on the Trial-Balance sheet for the next month, or left, at the option of the Book-keeper. For instance, you take the Trial-Balance for January and carry the footing to the side (in pencil-marks,) of the money-column of each account. At the close of February, you may include merely the transactions of February, or the transactions of January, and February also. The better way is, however, to include only the amounts that have been posted since the last Trial-Balance was taken, till the books are to be balanced, when the whole should be included. Many are in the practice of copying these balances into a book made expressly for that purpose. PROFIT AND LOSS-SHEET. 121 Dr. Profit and Loss-Sheet. Cr. 1838 Jan 31 To Charges, " Stock, 337 1,800 Jan 31 By Real-Estate, " Interest, . . " Ship't. to Orleans " Commission, . " Profit and Loss, " Merchandise, . 7 420 2,137 QUERIES ON A PROFIT SHEET. AND LOSS Having ascertained by my Trial-Balance that the footings of the two sides of the Ledger are equal, how shall I now proceed ? Ans. I suppose that you have already taken account of Stock, that is, you have fixed some definite value (which value should be no more or less than the property can be sold for) on the mer- chandise under its various heads, as Cotton, Flour, Sugar ; also, Ships, Real-Estate, Bank, and other Stocks (if such accounts be opened in your Ledger) and make a memorandum of such valua- tions on the Day-Book- For example ; if you have at the balancing of your Books, Mer- chandise unsold, valued at $3,000; Real-Estate at $4,000 ; Cot- ton at $2,000; Merchandise in Company $6,000 ; and a Ship at $14,000, you will place on the Cr. side of Merchandise $.3,000, Cr. side of Real-Estate $4,000, Cr. side of Cotton $2,000, Merchan- dise in Company (if you own half of it) $3,000, &c., writing on the line with each amount thus carried in " By Balance" In a small business, however, you may have but one of the afore-mentioned accounts, and that Merchandise ; for most of those items might come under that general head. Why is it necessary to carry in these Balances, in order to find the gain or loss ? You know that the Dr. side of the Merchandise-account shows how much you have paid for merchandise purchased, and the Cr. 16 L \2% PROFIT AND LOSS-SHEET. side of the same account how much you have received for sales of Merchandise ; and consequently if you purchase $4,000 v^rorth, and sell $2,000, the Dr. side of the account would be $?,000 the largest, which would indicate a loss of $2,000, that would not be true. But if you value what you have unsold, at a price for which you could sell it, say, $2,500, and carry the same to the Cr. side of the Merchandise-Account, the difference in the footings, $500, would be a gain. These Balances being carried to the Cr. of their respective ac- counts, how shall I proceed ? Take a sheet of paper ruled like that for the Trial-Balance, and write at the head of it, " Profit and Loss-sheet." Then add the two sides of the general Merchandise- Account, and if the Dr. side be the largest, the difference is a loss and you will carry it to the Dr, side of the Profit and Loss-sheet. But if the Cr. side be the lar- gest, the difference is again and you will place it on the Cr. side of the Profit and Loss-sheet. Proceed in the same manner with the Ships, Charges, Cotton, Real-Estate, Insurance, Interest, Profit and Loss, Commission, Bank, and other Stocks, Flour, Ad- ventures or Shipments, and Merchandise Co. accounts. I have obtained the difference of all the above accounts and added up the two sides of the Profit and Loss-sheet ; what is the next step ? Take the difference between the two columns which, being the net gain or loss on your whole business, you will carry to the Stock- Account. If the Dr. side be the largest you will carry the difference to the Dr. side of the Stock- Account because it is a loss; but if the Cr. side be the largest, carry the difference (in pencil- marks) which is a gain, to the Cr. side of the Stock-Account, and add it to the amount already there. You now subtract the amount (if any) on the Dr. of the Stock- Account, from the amount on the Cr. side of the same account ; and this difference will show you your net property, which of course must be equal to the difference between the two sides of the Balance-sheet, when this sheet shall have been made out. Is there any thing further to be done with the Profit and Loss- sheet ^ PROFIT AND LOSS-^HEET. 123 Not till you have taken the Balance-Sheet and ascertained that you have all the items correct ; for, if there be a mistake, it should he corrected on this sheet rather than on the book. The Profit and Loss-sheet, after proved to be correct, maybe transferred, verbatim, to the Profit and Loss-account in the Ledger. 124 BALANCE-SHEET. Dr. Balance-Sheet. Cr. 1838 Jan. 31 Merchandise, . . Cash, Bills Receivable, . Belknap & Hamersly Spalding GER — SET II. 151 3 Dr. Cash. Cr. 1837 Mar. 1 " 13 " 20 « 27 To Sundries, ... " " ! • . . " *' ! ! ! ! 1 8,410 1 1,191 2 1,696 3 12,572 100 00 00 00 00 Mar. 12 " 20 " 25 " 27 By Sundries, . . , " Balance 1 2 3 65 10,700 3,200 9,VJ04 23,869 loo iOO 00 00 00 23,869 Dr. John Brown. Cr. Mar. 17 To Merchandise, . . 2 94 00 Mar. 27 By Balance, . . . 94 Dr. H. B. Beach. Cr. Mar. 19 To Merchandise, . . 1 I fiO 00 Mar. 27 By Balance, .... (H; 00 Dr. A. & C. Day, & Co., Cr. Mar. 22 ToB. &B.'8Con8'gt. I 1,300 00 Mar. 27 By Balance, . . . . 1,300 -. : 00 Dr. D. Wadsworth. Cr. Mar. 27 To Merchandise, . . : I 70 m Mar. 27 By Balance, . . . 70 00 162 LEDGER SET II. 4 Dr. George Corning. Cr. Mar. 3 To Merchandise, . . 1 196 00 Mar. 15 By Cash, .... 2 196 00 Dr. John King. Cr. Mar. 8 To Merchandise. . . 2 10 00 Mar. 27 By Balance, . . • 10 00 Dr. E. W. Bull. Cr. Mar. 13 To Merchandise, . . 2 30 ^ Mar. 27 By Balance, . . . ___ 30 00 Dr, Brown & Brothers. Cr. Mar. 27 To Balance, . . . 1,171 25 Mar. 26 By B. & B.'s Cons't. '. 5 1,171 25 Dr. Charles Sheldon. Cr. Mar. 17 To Merchandise, . . 2 66 1 00 Mar. 27 By Balance, • . . 66 00 LEDGER — SET II. 153 5 Dr. HowE^ Mather, & Co. Cr. 1837 Mar. 4 To BUl8 Payable, . 1 500 00 Mar. 2 By Merchandise, . . 500 00 Dr. Charles Abernethy. Cr. Mar. 5 To Merchandise, . . 1 200 00 00 Mar. 11 " 27 By Cash, . . . . By Balance, . . . 100 100 200 00 00 00 200 Dr. John Stowell* , Cr. Mar. 27 To Balance, . . . 76 00 Mar. 8 By Merchandise, . 75 00 Dr. John Olmsted & Co. Cr. Mar. 2 " 13 « 16 To Merchandise, . . 1 " Bills Payable, . . i " Merchandise, . S 62 62 62 186 00 00 00 00 Mar. 10 " 22 " 27 By Merchandise, . . " Cash, .... •' Balance 2 3 100 62 24 186 00 00 00 00 Dr. Stewart & Co. Cr. Mar. 9 " 27 To Bills Payable, . . 2 " Balance, .... • 3,000 1,000 4,000 00 00 00 Mar. 5 " 24 By Merchandise, . . " Merchandise, . . 1 3 3,000 1,000 4,000 60 00 00 154 LEDGER — SET 11, Dr. Brown rM«if property. The Commission-Merchant, hiring his rent and advertising by the year, places all sums recei- ved for advertising and storing goods consigned to him, to the credit side of Profit and Loss. 186 LEDGER — SET III. Dr. Commission. Cr. 1837 Sept. 30 To Profit and Loss, 410 Aug. 8 Sept. 20 By Swan's Cons'gt. . '' Merchandise,Co.A. " Mercliandise,Co. B. 314 33 60 UK, 36.0 410 iW We have received $410 33, for selling goods for sundry individuals, which is a net gain, and goes to the credit of Profit and Loss. Dr. Consignment to New-Orleans. Cr. 1837 June 14 Sept. 30 To Sundries, . . " Profit and Loss, 4,120 1,379 5,500 Aug. 12 By Bills Receivable, 3 5,500,00 _5,5()0}()0 I The goods shipped to New-Orleans have all been sold, and we have gained on the same $ 1 :i79 50, which goes to the Cr. of Profit and Loss. Dr. Merchandise. Cr. 1837 June 1 ■ 8 Aug. 23 ■' 28 >t.23 ' 30 Oct. 1 To A.M. Collins & Sons " Howe,Mather & Co " Hills & Bolter, " Bills Payable, . " Puffing Manu. Co " Profit and Loss, To Balance, . . 1 2,286 44 June 2 1 1,200 56 •' 14 3 3,000 001 " 30 3 1,200 00 Sept. 28 4 1,000 00 " 30 1 1,913 00 00 10,600 2,600 1 00 " Cons'gt. to N. O. " Cash, " A.M. Collins & Sons " Balance, .... 1,800 1 (tr 4,000 lot) 1,00(1 1 0( • 1,200 1 0(, 2,600 loo 10,600 iOti The Balance, $2,600, is the value of Merchandise unsoZcf and is carried to the Dr. sheet Dr. Real-Estate. Cr. 1837 Aug. 24 Oct. 1 To Bills Receivable, To Balance, . . . ^500 5,500 Sept. 30 By Balance, 5,500 00 Our Real-Estate is unsold, valued at cost, 5,500. This, and all Merchandise- Accounts, also Personal- Accounts, may be debited to Interest, at the option of the owner of the books. The $5,500 goes to the Dr. side of the Balance-sheet. LEDGER SET III. 187 Dr. Charges. Or. 1837 June 12 July 1 " 30 Sept. 23 ,120 June 14 Aug. 8 Sept. 20 " 30 By Cons'gt. to N. O., " Swan's Cons'gt., " Company A., . " Profit and Loss, 40 200 40 839 1,120 In this case we have paid out $839 50, in the shape of Charges, more tlian we have received, which is a loss, and is carried to the Dr. side of Profit and Loss. Dr. Merchandise, Co. A. Cr. 1837 June 22 Sept. 20 " 30 To Bills Payable, . " Sundries, . . " Profit and Loss, 1,200 00 1,600 00 300 00 3,100 00 July 24 Aug. 30 By Brace & Bunco, " D. Buck «& Co., 1,500 1,600 3,100 These goods have all been sold, and we have realized on the same $300 over and above all ex- penses, which is transferred to the Cr. of Profit and Loss. Dr. Merchandise, Co. B. Cr. J 837 Aug. 26 Sept. 26 Oct. 1 ToR.Watkinson&Co. " Sundries, . . . " Profit and Loss, . To Balance, . 1,500 00 918^00 382 j 00 2,800 00 1,000 00 ' Sept. 12 » 30 By Howe, Mather, & Co., . . . . . " Balance, . . . . 1,800 1,000 2,800 In this Company- Account, we are entitled to one half the balance, $2,000, the other party being entitled to the other half Our gain is $382, which is carried to the Cr. of Profit and Loss, but the Balance, $1,000, goes to the Dr. side of the Balance-sheet. Dr. Cotton. Cr. 1837 Aug. 1 Sept. 30 To Cash " Profit and Loss, 4,000 00 1,000 00 6,000 Sept. 1 9 By Puffing Manu. Co., " R.Watkinson&Co., 2,000 3,000 5,000 The Cotton is all sold, and we have gained on the same $1,000. 188 LEDGER SET III. Dl Ship Europe. Cr. 1837 June 23 Sept. 30 Oct. To Cash, . . . . " Profit and Loss, To Balance, 8,000 400 8,400 7,700 Sept. 26 " 30 By Cash, . " Balance, 700 7,700 8,400 We have gained $400, on ship Europe, having the ship on our hands, valued at $7,700. The $400 goes to the Cr. of Profit and Loss. Dr. Flour. Cr. 1837 July 6 To Sundries. 2 5,000 00 Sept. 6 By John Trust, . . 4 5,000 00 This is an Account of Flour wliich was lost at sea, but the value of which we have recovered of the underwriters, through .lohn Trust, the Agent. The account is closed. When an account is closed, it furnishes no data for a new account under the same title, and if entries are made under the same head, there is no balance to be carried forward. Dr, Puffing Manufacturing Co. Cr. 1837 Sept. 1 To Cotton, I 4 2,onO 00 Sept. 23 By Sundries, 4 2,000 00 This account is is closed. Dr. Hills & Bolter. Cr. J 837 Sept. 30 To Balance, 3,000 00 {Aug. 23 Oct. 1 By Merchandise, By Balance, . . 3,000 3,000 I We owe Hills & Bolter the balance, $3,000, which goes to the Cr. of the Balance-sheet. LEDGER SET HI. 189 Dr. Cash. Cr. 1837 June 30 July 31 Aug. 31 Sept. 30 Oct. 1 To Sundries, To Balance, 21,000 2,000 4,804 14,750 42,554 12,094 June 30 July 31 Aug. 31 Sept. 30 By Sundries, Balance, 11 120 3,940 9,000 6,400 12,094 42,554 66 The balance of this account, $12,094 66 is the amount of cash on hand, at the close of busi' ness, and goes to the Dr. of the Balance-sheet. Dr. Bills Payable. Cr. 1837 July 22 Aug. 2 " 4 " 30 Sept. 30 To Cash, Balance, = 3,240 00 June 22 2 1,400 00 " 22 2 2,000 00 July 1 2 1,200 00 " 15 2 10,130 00 " 20 Aug. 28 jSept. 4 17,970 00 Oct. 1 By Hartford Bank-Stk., " Merchandise,Co.A., " Swan's Cons'gt., " A. M. Collins, & Sons, .... " Bills Receivable, " Merchandise, . "J.Hart, . . . By Balance, . 2 2 2 3 4 3,240 1,200 1,400 2,000 4,050 1,200 4,880 17,970 10,130 We owe on Bills, the balance, $10,130, which goes to the Cr. side of the Balance-sheet. Dr. Hartford Bank-Stock. Cr. 1837 June 22 Oct. 1 To Bills Payable To Balance, . , 3,240 "3;240 Sept. 30 By Balance, 3,240 00 We have here, property in Hartford Bank-Stock, anriounting to $3,240, which goes to the Dr. side of the Balance-sheet. It will be seen that in this Ledger, the Balances are all brought down ; that is, the Accounts are re-opened. 190 LEDGER SET III. Dr. Bills Receivable. CV. 1837 June 2 July 20 Aug. 4 " 12 To Merchandise, . . " Bills Payable, . . " Howe, Mather, & Co., " Consignment to New-Orleans, . . 1,800 4,050 8,000 5,500 19,.S50 00 : July 6 Aug. 1 " 24 Sept. 11 " 14 « 20 By Cash, . . " Real-Estate " Cash, • . 1 1,800 1 2,000 3 5,500 1 1,250 1 8,000 1 800 19,350 Here is no balance, all the Bills having been paid, and the account is said to be closed. Dr. Hartford Bank. Cr. 1837 June 8 Sept. 1 Oct. 1 To Cash, To Balance, 3,000 4,000 7,000 July 25 Aug. 24 Sept. 30 By Cash, . " Balance, 200 2,800 4,000 7,000 The Hartford Bank owes us, at the close of business, the difference of the two sides of the account, $4,000, which goes to the Dr. side of the Balance-sheet. Dr. Brace & Bunce. Cr. 1837 July 24 Oct. 1 To Merch'dise, Co. A. To Balance, . . . 1 ,500 T500 Sept. 30 By Balance, 1,500 Brace & Bunce owe us the balance, $1,500, which is carried to the Dr. of the Balance-sheet. Dr. Daniel Buck & Co. Cr. 1837 Aug. 30 Oct. 1 To Company A., To Balance, . . 00 1,600 : 00 I Sept. 30 By Balance, 00 D. Buck & Co., owe us the balance, $1,600, which goes to the Dr. side of the Balance-sheet. LEDGER SET III. 191 Dr. Swan's Consignment. Cr. 1837 July 1 Aug. 8 To Bills Payable, " Sundries, 1,40000 16,333 1 ^ I July 9i By Howe, Mather, &, Co., . . . ; . 17,733 33 Aug. 1 A.&C.Day,&Co. 733 9,000 8,000 17,733 $» This is an account of the goods consigned to us by Swan, all of which have been sold, and the account closed. This account is said to be closed because the two sides are equal, without car- rying in any balance. Dr. A. M. Collins & Sons. Cr. July 15 To Bills Payable, Sept. 281 '♦ Merchandise, Oct. 1 To Balance, 21 1 2,000 5 I 1,200 3.200 913 June ] Sept. 30 By Merchandise, " Balance, • . 1 2,286 913 3,200 A. M. Collins & Sons owe us the balance, $913 56, which goes to the Dr. side of the Balance- sheet. Dr. Howe, Mather, & Co. Cr. 1837 July 9 " 2- Sept. 12 To Swan's Cons'gt., . " Company B.Mdse., To Balance, 733 33! June 81 By Merchandise, . 9,0<)0 OOi Aug. 4' " Bills llcceivable, 1,800 OOj' Sept. 30 "Balance,. . , 11,533 "2,332 1,200 56 8,000 loo 2,332;'; 11,533 33 Howe, Mather, & Co., owe us the balance, $2,332 77, which goes to the Dr. side of the Balance-sheet. Dr. A. & C. Day, & Co. Cr. 1837 Aug. 1 Oct. To Swan's Cons'gt., To Balance, 8,000 4.000 Sept. 4 " 30 By Cash, . " Balance, 4,000 •4.000 8,000 00 A. & C. Day, & Co., owe us the balance, $4,000, which goes to the Dr. of the Balance-sheet. 192 LEDGER SET III. Dr. N. Harris. Cr. 1837 Aug. 20 Sept. 30 To Cash, . " Interest, 400 2 Sept. 30 By Stock, See Private-Ledger. 402 402 Dr. S. W. Hanks. Cr. 1837 I Sept. 8 To Cash, . " 30. " Interest, Sept. 301 By Stock, Dr. J. Hart. 200 200 Cr. 1837 Sept. 4 To Bill* Payable 4 4,880 00 July 4 By Flour, This account is closed. 4,880 00 Dr. Solomon Porter. Cr. 1837 Sept. 30 To Balance, . ,500 Sept. 20 j By Company A, Oct. II By Balance. . . 1,500 1,500 I! I ' 11 We owe Solomon Porter the balance, $1,500, which goes to the Cr. sifle of the Balance-sheet. LEDGER SET III. 193 Dr. R. WaTkinson & Co. Cr. 1837 Sept. 9 '* 13 Oct. 1 To Cotton, " Cash, . 3,000 1,500 _4,500 "2,118 Aug. 26 Sept. 26 " 30 By Company B. tt (( « " Balance. . . 1,500 882 2,118 4,500 In this case, R. Watkinson «fc Co. owe us the balance, $2,118, which goes to the Dr, of the Balance-slieet. Dr. John Trust. Cr. 1837 Sept. 6 To Flour, Oct. 1, To Balance, 5,000 5,000 4,800 00 .June 8 July 4 Sept. 30 By Insurance, " Balance, . 120 4,800 5,000 John Trust owes us the balance, $4,800, having, as our agent, received $5,000 of the under- writers, on Flour lost. The $4,800 goes to the Dr. side of the Balance-sheet. Dr. A. Watkinson. Cr. 1837 July 12 Sept. 30 To Cash, . " Interest, 405 Sept. 30 By Stock, 405 405 Dr. N. Swan. Cr. 1837 Sept. 30 To Balance, 15,819 Aug. 8 Oct. 1 By Swan's Cons'gt., . " Balance. . . . 15,819 15,819 We owe N. Swan the balance, $15,819, which is carried to the Cr. side of the Balance-sheet 25 R 194 TRIAL-BALANCES. Dr. TRIAL-BALANCE, FOR JUNE, 1837. Cr. Stock, . . . Cash, . . . Merchandise, . Bills Payable, . Bills Receivable Insurance, . . Charges, . . Hartford Bank, Ship Europe, . . A. M. Collins & Sons Howe, Mather, & Co. John Trust, . . Cons'gt. to N. Orleans Hartford Bank-Stock, Company A., . . 21,00000 3,48700 1,80000 8000 12000 3,00000 8,00000 4,120 3,240 1,200 46,047150 20,000 11,120 6,800 4,440 80 40 44 2,286 1,20056 8000 46,04750 Dr. TRIAL-BALANCE, FOR JULY, 1837. Cr. Cash, . . . Bills Payable, . Bills Receivable Insurance, . . Charges, . . Hartford Bank, A.M. Collins & Sons Howe, Mather, & Co. A. Watkinson, . . Swan's Consignment, Brace & Bunce, . Flour, .... 2,000.00 3,24000 4 05000 12000 30000 2,000 9,733 40000 1,400 1,500 5,000 J. Hart, . . John Trust, Company A., 29,743 33 3,94000 7,450 1,800 120 200 4,880 120 1,500 9,733 29,743 33 It will be remembered, from the remarks on the Trial-Balance belonging to BooXs, Set I., that the design of it is to show whether the sums have been correctly posted from the Journal to the Ledger. The same number of dollars and cents should be posted to the Dr. as to ihe Cr. side of the Ledger, and, if this has been done, it is evident that the amount of the debit entries will equal the aviount oi ihc credit entries when added; that is, the Dr. ani Cr. columns of the Trial will be equal when added. The Trial of Ledger, Set HI., is taken monthly, for June, July, August, and September. This method is usually pQ 2bth. , Bought of Nicholas Harris, for cash. Merchandise, per Invoice-Book, . 28th., Bought of H. B. Chaffee, Merchandise, on my note, drawn at 4 months, per Invoice-Book, 30th. , Sold Warburton & King, for cash, at 2 per cent, premium, a set of exchange, drawn at sight, on Hudson & Co., London, for 675 pounds sterling, Premium, Bought at auction, for cash. Merchandise, per Invoice-Book, January 8th., Received from Hudson & Co., an account sales of Flour, consigned to them by the Great Western. Net proceeds, which I place to their debit, is, Memorandum. Mdse., unsold at date, is valued at $7,000 00 4,000 166 3,000 60 4,166 2,000 4,000 66 00 00 3,060 875 6,00000 00 00 Note.— This Day-Book is given without any Journal or Ledger, from which advanced classes may make a Journal, (like Journal set I.) and then construct the Ledger ; the Trial-Balance, and Balance-sheets of which will be found on the following page. 204 TRIAL-BALANCE SET IV. Dr. TRIAL-BALANCE— SET IV. Cr. Stock, . . . Cash, . . . Merchandise, . H. Chittenden, i Henry Hudson, I Bills Receivable, Bills Payable, . Hudson & Putnam Adv'ture to London Hudson & Co., Profit and Loss, . 1,500 20,860 14,875 8oo:oo 680 5,500 300 4,166 6,000 54,681 66 21,800 2,875 12,280 8,666 66 6,00000 3,00000 6000 54,68166 Dr. BALANCE-SHEET—SET IV. Cr. Stock,' . . . Cash, . . . Merchandise, . H. Chittenden, Henry Hudson, Bills Receivable, Bills Payable, . Hudson & Putnam Hudson & Co., 17,985 7,000 800 680 5,500 300 3,00000 35,265 00 26,598 8,666 34 35,265 00 66 In journalizing the foregoing Day-Book, remember that The Dr. side of the Cash- Account, shows your receipts, and The Cr. side of the Cash- Account shows your payments of cash. The Dr. side of the Merchandise- Account, shows your cost, and The Cr. side of the Merchandise-Account, shows your sales of Merchandise. The Dr. side of a Person's- Account, shows what he owes you, and The Cr. side of a Person's-Account, shows what he has paid you. The Dr. side of the Bills Receivable-Account; shows other men's notes received. The Cr. side of the Bills Receivable- Account, shows their notes parted with. The Dr. side of the Bills Payable-Account, shows your notes which you redeem. The Cr. side of the Bills Payable-Account, shows the notes which you issue. MANNER OF KEEPING BANK-BOOKS. The number of Books kept in a Bank must depend much upon the amount of business transacted. The following are the Books commonly used, vi^ : 1st. The Journal, or Day-Book, kept by the Cashier. The committee appointed to receive the first or all the install- ments, are made Dr. to the same, (say $120,000,) and when they pay over the same to the Board of Directors or President, they are credited for the amount. When the Stock is subscribed for ^ Sundries are Dr. to Stock in Co. The Stock- Account in the Ledger must be credited $120,000, and (suppose four subscribers investing $30,000 each, in shares,) each subscriber is made Dr. $30,000. When the Subscriptions , or Installments are paid, Stock in Co. is Dr. to Sundries. - Stock in Co. is Dr. $120,000, and each subscriber is credited $30,000. Cash is then made Dr. " To Sundries," $120,000, and each subscriber is credited " By Cash," $30,000. 2nd. The Expense-Book gives a record of all the expenses, as the salaries of the President, Cashier, clerks, &c. These ex- penses are entered by the Cashier, every six months, when a dividend is declared by the Board of Directors. The account is then closed by Profit and Loss. 3rd. The Deposite-Book, in which there is one column for the name of the depositors, one for the amounts deposited, and one for each of the Book-keepers. Each Book-keeper has the names allotted to him alphabetically, and he removes the amounts com- ing under his letters into his columns, to prevent confusion in post- ing. As, ^ 806 MANNER OF KEEPING BANK-BOOKS. Deposite-Book. From A to G. From G to O. From O to Z. July 4 6 9 Horatio Aldeii, Samuel Tudor, William H. Imlay,, .... 12,000 16,000 13,000 41,000 12,000 13,000 16,000 4th. The Transfer-Book, on which are recorded the shares transferred from one individual to another, and which is closed g^ome days before the dividend is declared, during which time no transfer can be made. 5th. The Statement-Book. This Book the Cashier lays be- fore the Directors twice in the week, (more or less, as the cus- tom may be,) at which time they meet to discount the notes offer- ed, and to ascertain the state of the funds from this Book. As, Dr. Statement-Book. Cr. Specie in vaults, . , Bills discounted, . , Notes of other Banks, Banking House, . . Expenses paid . 47,000,00 140,000 00 30,000,00 23,000 00 2,681 68 242,(181168 Notes in circulation, Capital Stock, . . Discounts received. Surplus fund, . . Deposites, . . . . 40,000 lOO 120,00066 8,000,00 14,26090 60. },42dl2 2,681168 6th. The Stock-Ledger, on which every stockholder's ac- count is opened and credited for his shares of Stock, and debited for his transfers. When notes are discounted by the Bank, debit Bills Receiva- ble ^' To Cash," for the net amount paid by the Bank. When the Bills are paid or redeemed, make Cash Dr. To Bills Receivable^ for the sum paid by the Bank and To Dis- count for the amount of discount on the note. When th/s Bank loans an Individual money, on Interest, The individual is Dr. " To Cash ;" and when he pays the original sum and interest. Cash is made Dr. to the Individual and to Interest. When a transfer of shares is made, the seller is made Dr. to the buyer for the amount of the transfer. If a dissolution of the company take place, each stockholder is made Dr. " To Cash," for the amount of shares refunded. MANNER OP KEEPING BANK-BOOKS, 207 If any stockholder forfeits his shares by non-payment of the remainder, his account must be closed To Profit and Loss, and he is no longer considered a stockholder. When the Dividend is declared, debit Profit and Loss " To Sundries," for the amount of the dividend, and credit each stock- holder for his share of it " By Profit and Loss." When the Dividend is paid, debit each stockholder " To Cash" for the amount of his share, and credit Cash " By Sun- dries," for the whole dividend paid. When the Cash-Account is balanced, debit the Balance-Ac- count " To Cash," for the stockholder's capital, and credit the Cash- Account " By Balance," for the same. When the Stockholder's- Accounts are balanced, debit each Stockholder's-Account for this amount of shares, " To Balance," and credit the Balance-Account, ** By Sundries," for the whole capital. A Bank may be, 1st. A Bank of deposite, like the Savings Banks, where they receive deposites at a low rate of interest, and lend the money to individuals on real-estate for security, without issuing any paper currency* 2nd. A Bank of deposite and discount, where moneys are re- ceived in deposite, usually without interest, and where notes are discounted at the risk of the Banking Company, — The deposites in some Banks are so great, that with a small capital, the Directors can discount all the good paper which is offered. 3rd. A Bank of deposite, discount, and circulation, at which moneys are received in deposite, notes discounted, as above stated, and which issues the capital invested, or more, in paper cur- rency, — The Company are permitted by the acts of incorpora- tion, to issue a given amount of their notes on a given amount of bullion, or coins of gold or silver. 208 BRITISH STOCKS. Stocks are property owned by government or individuals, in moneyed institutions, roads, bridges, manufactories, &c. When the shares sell above their original cost, they are said to be above par, and when they sell for less, they are said to be below par. The British Stocks are, the three per cent, consolidated Annui- ties, produced by about £400,000,000, sterling, formed in part by the consolidation of several stocks, bearing interest at 3 per cent. When the term consols, is used indefinitely, in speaking of stocks, it has reference to these annuities. Five per cent. Irish Annuities, are produced by about £2,000, 000 sterling, formed by loans, for the use of Ireland, before the Union. Stock of the Bank of England, amounts to £12,000,000, ster- ling, from which the company have accommodated the govern- ment with various loans, and carry on the banking business, pur- chase bulb on, &c. The profits of the company are £1,200,000 sterling, per annimi. India Stock forms the trading capital of the East-India Com- pany. The stock is about £6,000,000, producing a dividend of 10 1-2 per cent., per annum. Bank Long Annuities; so called, from the annual payments being from their origin, made payable at the Bank, and from their being granted for a longer time than other terminable annuities. These annuities extend to the beginning of the year 1860, and the annual payments are £1,100,000, sterling. Exchequer Bills, are issued for different hundreds or thousands of pounds, and bear an interest 21-2 per cent, per diem., from the day of date, till the time they are advertised to be paid. Navy Five per cent. Annuities ; produced from about £50,000, 000 of stock, partly formed on Navy Bills, converted in 1784 into stock, bearing interest at 5 per cent. Omnium, is a term denoting the different stocks formed by a loan, while any part of same remains unpaid. Scrip is a term given to each of the receipts of the Omnium when they are sold separately. Navy Bills are merely bills of exchange, drawn at 90 days date, and are given by the Commissioners of the Navy Depart- ment for supplies, and the interest upon these amounts to 3 per cent, per diem. PART HI. REMARKS ON THE FOLLOWING TABLES, The Interest Tables, on the three following pages, show the principal at the head of the page, and the days and months in a column in the centre of the page. If you would find the interest on $20 for 63 days, look for the dollars at the head of the page, under which, and against 63, in the day coXuvsm, you find 21 cents. If for $500, for 4 months, you find, under $500, and on the paral- lel with 4 months, $10 to be the interest required. These tables are, of course, limited in their application, occupy- ing, as they do, only three pages ; yet so full, as in many cases to be very useful. The author would respectfully invite those interested to exam- ine his Interest Tables at six per cent. They will be found as full as any in print; so constructed as to bring the price very low; accompanied with a new method of equating time, and much mat- ter useful to the business-man. TABLES OF INTEREST AT SIX PER CENT. 211~| #1 $2! i ^3 §4 $5 Days. 1 16 97 f 8, 1 ^ 9 19 10 1 • 1 2 3 4 5 6 7 8 9 • 1 • 1 ! 2 • 1 10 11 12 13 14 '. 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 2 . 3 . 1 15 2 . 2 . 2 . 2 . 3 1 16 2 . 2 . 2 . 2 . 3 17 2 . 2 . 2 . 3 . 3 . 2 18 2 . 2 . 2 . 3 . 3 . 2 19 2 . 2 . 3 . 3 . 3 . 2 20 2 . 2 . 3 . 3 . 3 . 2 21 2 . 2 . 3 . 3 . 4 . 2 22 2 . 3 . 3 . 3 . 4 . 2 . 2 23 2 . 3 . 3 . 3 . 4 . 2 . 2 24 . 2 . 3 . 3 . 4 . 4 . 2 . 2 25 3 . 3 . 3 . 4 . 4 . 2 . 2 26 . 3 . 3 . 3 . 4 . 4 . 2 . 2 27 3 . 3 . 4 . 4 . 5 . 2 .2 28 3 . 3 . 4 . 4 . 5 . 2 . 2 29 . 3 . 3 . 4 . 4 . 5 1 2 . 2 . 3 30 3 . 4 . 4 . 5 . 5 , 1 2 . 2 . 3 33 3 . 4 . 4 . 5 . 6 1 2 . 2 . 3 34 . 3 . 4 . 5 . 5 . 6 . 2 3 . 4 . 5 60 6 . 7 . 8 . 9 . 10 . 2 3 . 4 . 5 63 . 6 . 7 . 8 .9 .11 . 2 3 . 4 . 5 64 6 . 7 . 9 . 10 . 11 2 . 3 5 . 6 . 8 90 9 . 11 . 12 . 14 . 15 2 . 3 5 . 6 . 8 93 . 9 . 11 . 12 . 14 . 16 2 . 3 5 . 6 . 8 •94 Months. 9 . 11 . 13 . 14 . 16 2 . 4 6 . 8 . 10 4 . 12 . 14 . 16 . 18 . 20 3 . 5 . 8 . 10 . 13 5 . 15 . 18 . 20 . 23 . 25 3 . 6 . 9 . 12 . 15 6 . 18 . 21 . 24 . 27 . 30 4 . 7 . 11 . 14 . 18 7 . 21 . 25 . 28 . 32 . 35 4 . 8 . 12 . 16 . 20 8 . 24 .28 . 32 . 36 . 40 5 . 9 . 14 . 18 . 23 9 . 27 . 32 . 36 . 41 . 45 5 . 10 . 15 . 20 . 25 10 . 30 . 35 . 40 . 45 . 50 6 . 11 . 17 .22 . 28 11 . 33 . 39 . 44 . 5p . 55 6 . 12 . 18 . 24 . 30 12 . 36 . 42 . 48 . 54 . 60 12 . 24 . 36 . 48 . 60 24 . 72 . 84 . 96 1,08 1,20 18 . 36 . 54 . 72 . 90 36 1 ,08 1,26 1,44 1,62 1,80 ' 24 . 48 . 72 . 96 1,20 48 1 ,44 1,68 1,92 2,16 2,40 212 TABLES OF INTEREST AT SIX PER CENT. | $20 1$ 30 $ 40 $ 50 $ 60 Days. § 70 $ 80 $ 90| 100| 200 1 . 1 . 1 . 1 ~T~ . 1 . 1 . 2 . 2 . 3 1 . 1 . 1 . 2 . 2 2 . 2 . 3 . 3 . 3 . 7 1 . 2 . 2 . 3 . 3 3 . 4 . 4 . 5 . 5 . 10 1 . 2 . 3 . 3 . 4 4 . 5 . 5 . 6 . 7 . 13 2 . 3 . 3 . 4 . 5 5 . 6 . 7 . 8 . 8 . 17 2 . 3 . 4 . 5 . 6 6 . 7 . 8 . 9 ' . 10 . 20 2 . 4 . 5 . 6 . 7 7 . 8 . 9 . 11 . 12 . 23 3 . 4 . 5 . 7 . 8 8 . 9 . 11 . 12 . 13 . 27 3 . 5 . 6 . 8 . 9 9 . 11 . 12 . 14 . 15 . 30 3 . 5 . 7 . 8 . 10 10 . 12 . 13 . 15 . 17 . 33 4 . 6 . 7 . 9 . 11 11 . 13 . 15 . 17 . 18 . 37 4 . 6 . 8 . 10 . 12 12 . 14 . 16 . 18 . 20 . 40 4 . 7 . 9 . 11 . 13 13 . 15 . 17 . 20 . 22 . 43 5 . 7 . 9 . 12 . 14 14 . 16 . 19 . 21 . 23 . 47 5 . 8 . 10 . 13 . 15 15 . 18 . 20 . 23 . 25 . 50 5 . 8 . 11 . 13 . 16 16 . 19 . 21 . 24 . 27 . 53 6 . 9 . 11 . 14 . 17 17 . 20 . 23 . 26 . 28 . 57 6 . 9 . 12 . 15 . 18 18 . 21 . 24 . 27 . 30 . 60 6 . 10 . 13 . 16 . 19 19 . 22 . 25 . 29 . 32 . 63 7 . 10 . 13 . 17 . 20 20 . 23 . 27 . 30 . 33 . 67 7 . 11 . 14 . 18 . 21 21 . 25 . 28 . 32 . 35 . 70 7 . 11 . 15 . 18 . 22 22 . 26 . 29 . 33 . 37 . 73 8 . 12 . 15 . 19 . 23 23 . 27 . 31 . 35 . 38 . 77 8 . 12 . 16 . 20 . 24 24 . 28 . 32 . 36 . 40 . 80 8 . 13 . 17 . 21 . 25 25 . 29 . 33 . 38 . 42 . 83 9 . 13 . 17 . 22 . 26 26 . 30 . 35 . 39 . 43 . 87 9 . 14 . 18 . 23 . 27 27 . 32 . 36 . 41 . 45 . 90 9 . 14 . 19 . 23 . 28 28 . 33 . 37 . 42 . 47 . 93 10 . 15 . 19 . 24 . 29 29 . 34 . 39 . 44 . 48 . 97 10 . 15 . 2C . 25 . 30 30 . 35 . 40 . 45 . 50 1,00 11 . 17 . 22 . 28 . 33 33 . 39 . 44 . 50 . 55 1,10 11 . 17 . 23 . 28 . 34 34 . 40 . 45 . 51 . 57 1,13 20 . 30 .. 40 . 50 .60 60 . 70 . 80 . 90 1,00 2,00 21 . 32 . 42 . 53 . 63 63 . 74 . 84 . 95 1,05 2,10 21 . 32 .43 . 53 • 64 64 . 75 . 85 . 96 1,07 2,13 30 . 45 . 60 . 75 • 90 90 1,05 1,20 1,35 1,50 3,00 31 . 47 . 62 . 78 • 93 93 1,09 1,24 1,40 1,55 3,10 31 . 47 . 63 . 78 • 94 94 Months. 1,10 1,25 1,41 1,57 3,13 40 . 60 . 80 1,00 1,20 4 1,40 1,60 1,80 2,00 4,00 50 . 75 1,00 1,25 1,50 5 1,75 2,00 2,25 2,50 5,00 60 . 90 1,20 1,50 1,80 6 2,10 2,40 2,70 3,00 6,00 70 1,05 1,40 1,75 2,10 7 2,45 2,80 3,15 3,50 7,00 80 1,20 1,60 2,00 2,40 8 2,80 3,20 3,60 4,00 8,00 90 1,35 1,80 2,25 2,70 9 3,15 3,60 4,05 4,50 9,00 1,00 1,50 2,00 2,50 3,00 10 3,50 4,00 4,50 5,00 10,00 1,10 1,65 2,20 2,75 3,30 11 3,85 4,40 4,95 5,50 11,00 1,20 1,80 2,40 3,00 3,60 12 4,20 4,80 5,40 6,00 12,00 2,40 3,60 4,80 6,00 7,20 24 8,40 9,60 10,80 12,00 24,00 3,60 5,40 7,20 9,00 10,80 36 12,60 14,40 16,20 18,00 36,00 4,80 7,20 9,60 12,00 14,40 48 16,80 19,20 21,60 24,00i|48,00| TABLES OF INTEREST AT SIX PER CENT. 213 $ 300 1$ 400||$ 500 #600 Days. $700 $§00 $900 $xooo 5 . 7 . 8 . 10 1 . 12 . 13 , 15 . 17 10 . 13 . 17 . 20 2 23 . 27 . 30 . 33 15 . 20 . 25 . 30 3 . 35 . 40 . 45 . 50 20 . 27 . 33 . 40 4 . 47 . 53 . 60 . 67 25 . 33 . 42 . 50 5 . 58 . 67 . 75 . 83 30 . 40 . 50 . 60 6 . 70 . 80 . 90 1,00 35 . 47 . 58 . 70 7 . 82 . 93 1,05 1,17 40 . 53 . 67 . 80 8 . 93 1,07 1,20 1,33 45 . 60 . 75 . 90 9 1,05 1,20 1,35 1,50 50 . 67 . 83 1,00 10 1,17 1,33 1,50 1,67 55 . 73 . 92 1,10 11 1,28 1,47 1,65 1,83 60 . 80 1,00 1,20 12 1,40 1,60 1,80 2,00 65 . 87 1,08 1,30 13 1,52 1,73 1,95 2,17 70 . 93 1,17 1,40 14 1,63 1,87 2,10 2,33 75 1,00 1,25 1,50 15 1,75 2,00 2,25 2,50 80 1,07 1,33 1,60 16 1,87 2,13 2,40 2,67 85 1,13 1,42 1,70 17 1,98 2,27 2,55 2,83 90 1,20 1,50 1,80 18 2,10 2,40 2,70 3.00 95 1,27 1,58 1,90 19 2,22 2,53 2,85 3,17 1,00 1,33 1,67 2,00 20 2,33 2,67 3,00 3,33 1,05 1,40 1,75 2,10 21 2,45 2,80 3,15 3,50 1,10 1,47 1,83 2,20 22 2,57 2,93 3,30 3,67 1,15 1,53 1,92 2,30 23 2,68 3,07 3,45 3,83 1,20 1,25 1,60 1,07 2,00 2,08 2,40 24 2,80 Q,00 3,20 3,33 3,60 4,00 4,ir •^,00 20 1,30 1,73 2,17 2,60 26 3,03 3,47 3,90 4,33 1,35 1,80 2,25 2,70 27 3,15 3,60 4,05 4,50 1,40 1,87 2,33 2,80 28 3,27 3,73 4,20 4,67 1,45 1,93 2,42 2,90 29 3,38 3,87 4,35 4,83 1,50 2,00 2,50 3,00 30 3,50 4,00 4,50 5,00 1,65 2,20 2,75 3,30 33 3,85 4,40 4,95 5,50 1,70 2,27 2,83 3,40 34 3,97 4,53 5,10 5,67 3,00 4,00j 5,00 6,00 60 7,00 8,00 9,00 10,00 3,15 4,20 5,25 6,30 63 7,35 8,40 9,45 10,50 3,20 4,27 5,33 6,40 64 7,47 8,53 9,60 10,67 4,50 6,00 7,50 9,00 90 10,50 12,00 13,50 15,00 4,65 6,20 7,75 9,30 93 10,85 12,40 13,95 15,50 4,70 6,27 7,83 9,40 94 Months. 4 10,97 12,53 14,10 15,67 6,00 8,00 10,00 12,00 14,00 16,00 18,00 20,00 7,50 10,00 12,50 15,00 5 17,50 20,00 22,50 25,00 9,00 12,00 15,00 18,00 6 21,00 24,00 27,00 30,00 10,50 14,00 17,50 21,00 7 24,50 28,00 31,50 35,00 12,00 16,00 20,00 24,00 8 28,00 32,00 36,00 40,00 13,50, 18,00 22,50 27,00 9 31,50 36,00 40,50 45,00 15,00 20,00 25,00 30,00 10 35,00 40,00 45,00 50,00 16,50 22,00i 27,50 33,00 11 38,50 44,00 49,50 55,00 18,00 24,00| 30,00 36,00 12 42,00 48,00 54,00 60,00 36,oo; 48,00| 60,00 72,00 24 84,00 96,00 108,00 120,00 54,00, 72,00 90,00 108,00 36 126,00 144,00 162,00 180,00 72,00 96,00! 120,00 144,00 48 168,00 192,00 216,00 240,00 VALUE OF GOLD COINS, According to the Laws of May and June, 1834. Names of Coins. UNITED STATES Eagle, coined before July 31, 1834. Shares in proportion FOREIGN GOLD. AUSTRIAN DOMIN IONS. Souverein, . . . Double Ducat, . Hungarian Ducat, BAVARIA. Carolin, . . . Max d'or, or Maxi' milian, . . . Ducat, .... DERNE. Ducat, double in proportion, . . Pistole, .... BRAZIL. Jobannes, | in pro portion, . . . Dobraon, . . . Dobra, .... Moidore i in propor tion, .... Crusade, . • . BRUNSWICK. Pistole, double in proportion, . . Ducat, .... COLOGNE. Ducat, .... COLOMBIA. Doubloon, . . . DENMARK, Ducat, Current, . Ducat, Specie, . Christian d'or, . EAST-INDIA. Rupee, Bombay 1818, . . Rupee, Madras, 1818, .... Pagoda, Star, . ENGLAND. Guinea, ^ in propor- tion, . . . . , Sovereign, do. Seven Shilling piece, FRANCE. Double Louis, coin ed before 1786. Louia, do, . . . Double Louis, coin ed since 1786, Louis, do. . . . Double Napoleon, or 40 francs, . . Napoleon, or 20 do Same as the new Louis Guinea, $ct.tn 10 10 3066 $ ct. tn. 3 37 4 58 32 70 6 30 1 2 26 969 4:84 465 Names of Coins. FRANKFORT ON THE MAIN. Ducat, .... GENEVA. Pistole, old, . . Pistole, new, . . HAMBURG. Ducat, double in pro- portion, . . . GENOA Sequin, .... HANOVER.. . . Double George d'or single in propor tion, .... Ducat, .... Gold Florin, double in proportion, HOLLAND. Double Ryder, , Rvdpr, . , Ducat, .... Ten Guilder piece, 5 do. in proportion MALTA. Double Louis, Louis, . . . ; Demi I^uis, . . MEXICO. Doubloons, shares in proportion, . . MILAN. Sequin, Doppia, or Pistole, . Forty Livre pieces. piece, NAPLES. Six Ducat 1783, . . Two Ducats, or Se- quin, 1762, . . . Three do. or Oiicet- ta, 1818, . . . . NETHERLANDS. Gold Lion, or four- teen Florin piece. Ten Florin piece, 1820, PARMA. Quadruple Pistole, double in propor- tion, Pistole or Doppia, 1787, Pistole or Doppia, 1796, . ; . . . Maria Theresa, 1818, PIEDMONT. Pistole coined since 1785, half in pro- portion, . . . . Sequin, J in propor'n dt.gr. 4 3i 5 20 il • Ct.l its $ ct. m. 227 9 I 3 98 5 3 44 4 227 30 16 62 5I4I 2j29 TALUE OF GOLD COINS. 215 Names of Coins. Carlino, coined since 1785, half in pro- portion, . - . . Piece of 20 francs, called Marengo, . POLAND. Ducat, PORTUGAL. Dobraou, . . . Dobra, Johannes, .... Moidore ^ in pro- portion, . . . . Piece of 16 TestOons or 1600 Rees, . . Old Crusado of 400 Rees, New Crusado of 480 Rees, . . . - . Milree, coined in 1755, PRUSSIA. Ducat, 1748, . . . do. 1787. . . . Frederick, double 1769,- Frederick double 1800 Frederick, single, 1778, Frederick, single, . 1800, ROME. Sequin, coined since 1760, Scudo of Republic, . RUSSIA. Ducat, 1796, . . . do. 1763, . . . Gold Ruble, 1756. . do. do. 1799. . do. Polten, 1777, . Imperial, ISOl, . Half do. 1801, . do. do. 1818, . SARDINIA. Carlino i in propor- ti.',n, dt.gr. -1 n $ct.m. \\ 25 631 2 334 213 30i06 22 16 7 47 33 7 34 3 67 3 68 lOl 7J 1 888 I $ ct- m. 3270 2 27 226 7f 7195 35 7 82 391 3'93 9i47 2 Names of Coins. 1784, 1797, 1754, 1784, 1751, 1758, 1772, SAXONY. Ducat, do. Augustus, do. SICILY. I Ounce, Double do. SPAIN. Doubloons, double and single, and shares in pro- portion, .... Doubloon, .... Pistole, Coronilla, Gold Dol- lar or Vintern,1801, SWEDEN. Ducat SWITZERLAND. Pistole of the Helve- tic Republic, 1800, TREVES. Ducat, TURKEY. Sequin FonducU, of Constantinople, 1773, .... Sequin do. 1789, . Half Misseir, 1818, Sequin FonducU, Yeermeeblekblek, TUSCANY. Zechino or Sequin, llusponeof theking dum of Etruria, VENICE. Zechino or Sequin shares in propor- tion, . . . . , WIRTEMBEllG. Carolin, . . . . Ducat, ZURICH. Ducat, double and half in proportion, dt.gr. ^m 8i 9 8^ 3 5 5? 2 5i 18i II $ ct.m.\\$ ct. m. 35 1 92 9 27 2 174 1 49 1,71 284 216 650 2, 6 j 216 JL 4 59 9 4 56 226 186 8 1 52 1 8 8 53 5 The American Eagle, coined since 1834, is valued at $10,00, and shares in proportion. The weight of those coined since the above mentioned date is 10 dwt. 18 gr. The design in diminish- ing the weight is to keep the gold in the country. The Sovereign of England, was, when first coined, equal to £1, sterling, $4,44,4, which is now worth $4,85. All gold coins having the same weight and fineness as formerly, have in- creased in their value, in about the same proportion as the Sovereign and Eagle. Imaginary money is used to express such sums as have no coins equal to them in value;— such, may be considered the Pound sterling. When we speak of gold lor gold, we say the Pound is worth $4,85; but the value of the Pound among merchants has not nominally changed. In selling bills on England, the Pound is considered $4,44, and if bills are sold at 8 per cent. premium, the 8 per cent, is computed on the last named amount, and not on $4,85. A bill on Lon- don for £675, at eight per cent., would be sold for $3,240,00 ; as, £ 675 40 9)27000 $3000 8 24000 3000 $3,246,00 To bring Pounds into Dollars, multiply by 40, and divide the product by 9. A TABLE, Showing the number of days from any day in one month, to the same day in another. Days tn a month. SI 28 31 30 31 30 31 31 30 31 30 31 | I Tomr 1 If 1 1 1 r 1 1 1 1 1 1 "" n ^j ^1-^^^ • • • 1 January. . 366 31 59 90 120 151 181 212 243 273 304 334 2 February. . 334 365 28 59 89 120 150 181 212 242 273 303 3 March. . . 30G 337 365 31 61 92 122 153 184 214 245 275 4 April. . . 275 306 334 365 30 61 91 122 153 183 214 244 5 May. . . . 245 276 304 335 365 31 61 92 123 153 184 214 6 June.. . . 214 245 273 304 334 365 30 61 92 122 153 183 7 July. . . . 184 215 243 274 304 335 365 31 62 92 123 153 8 August . 153 184 212 243 273 304 334 365 31 61 92 122 9 September. 122 153 181 212 242 273 303 334 365 30 61 91 10 October.. . 92 133 151 182 212 243 273 304 335 365 31 61 11 November. . 61 92 120 151 181 ^12 242 273 304 334 365 30 12 December. . 31 62 90 121 151 182 212 243 274 304 335 365 Thirty days hath September, (Save February, alone,) April, June, and November; Which hath but twenty-eight, All the rest have thirty-one. Except *Leap-Year it hath twenty-nine. ♦When the years can be divided by 4 without a remainder, it is Leap-Year, and has 366 days. 1st. To find the number of days from the 1st. of January to the 1st. of July :— Follow the hori- zontal line on which January is printed, till you come to July, and you find 181, which are the number of days intervening those dates. 2nd. To find the number of days from the 1st. of May to the 1st. of October :— Follow the hori- zontal line on which May is printed, till you come under October, and you will find 153 days to be the intervening time. 3rd. So if you would find the number of days between the 9th. of May, and the 9th. of October, you would pursue the same course as in case 2nd. ; for it is evident, that there are the same num- ber of days from the 9th., or anv other day in one month to the same day in another month, as there are from the 1st. to the 1st. of the same months. 4th. To find the number of days from the 1st. of March to the 12th. of November :— From the Ist. of March to the 1st. of November, will be seen, are 245 days, to which add the 12 days, and you have 257 days. Thus, you will always in such cases, find the time between the given time of one month to the same day in another month, and add or subtract as may be most convenient. EQUATING TIME OF PAYMENTS. What is meant by equating payments 1 It is to find the time at which several debts due at different periods of time, may be paid in one payment, so that the interest on the sums ^overdue, may cancel the discount on the sums fnot yet due ; that is, so that neither party shall lose any in- terest. Is it common that the equated or averaged time of payment is required to be found in actual business 1 Such cases are constantly occurring in Banks, and all Mercantile establishments of any importance. In Banks, time is equated principally on notes, when an individual would give one note for several due at different times, or redeem several such notes for cash. In the Counting-House, time is equated on Notes, Accounts, Accoimts-Current, &c. E X A M P L E I . I bought goods of Olmsted & Thacher, on account, as follows : What is the equated time of payment 1 July 4th., ^50 25 " 18th., 25 60xl4days= 358 40 Aug. 26th., 75 00X53 " ==3,975 00 Sept. 4th., 60 30 X 62 " =3,738 60 Oct. 9th., 40 13X97 " =3,892 61 Amount of the debt, 251 28 251)11,964 61(47,t nearly 48 days. RULE I. 1st. Multiply each sum (excepting the first sum,) into the time intervening be- tween its and the earliest date, and add the products together. 2nd. Divide the sum of the products arising from the foregoing multiplication, by the whole debt. The quotient arising from the above division, being days or months, (as the case may be stated, in days or months,) added to the earliest date given, shows the equa- ted time of payment. EXPLANATION OF EXAMPLE I. 48 days from July 4th., gives the equated time Aug. 21st. Day3. From July 4th. to July 18th., are 14x25 60, as above. From July 4th. to Aug. 26th., are 53 X 75 00, as above. From July 4th. to Sept. 4th., are 62x60 30, as above. From July 4th. to Oct. 9th., are 97x40 13, as above. It will be seen that we count from the first date, continually finding the days in- tervening between July 4th. and each successive daXe, forward^ making no use of the first sum except adding it with the other amounts for a divisor. * " Overdue.'" The sums overdue are those which (if not for the agreement of the parties to •quate the payment,) would have been paid before the equated time. t " Not yet Due." The sums not yet due, are those which (if not for the agreement of the parties to equate the payment,) would have been paid after the equated time, t If more than half a day we call it a whole day ; but if the flraction is less than half, we call it mought. 2S T 218 EQUATING TIME OF PAYMENTS. PROOF OF EXAMPLE I. Days. From July 4th. till Aug. 21st., (or medium time)48 X 50 25^=2,412 00 ) « ^j.^ .^ From July 18th. till Aug. 21st., (or medium time) 34 X 25 69== 870 40 S ' From Aug. 21st. (or medium time) till Aug. 26th., 5x7500= 375 00 ^ From Aug. 21st. (or medium time) till Sept. 4th., 14 x 60 30== 844 20 J- 3,185 57 From Aug. 21st. (or medium time) till Oct. 9th., 49x40 13 = 1,966 37 ) RULE TO PROVE EQUATIONS. 1st. Find the number of days intervening between the first date and the equated time, and multiply that number of days into the sum frcm which you counted. Proceed thus with each sum whose date is earlier than the equated time, and add their products together. 2nd. Find the number of days intervening between the equated time and the first date after that time, and multiply that number of days into the sum to which you counted. Proceed thus with each sum whose date is later than the time of equation, and add the products together. The sum of the products before the equa- ted time must be equal the sum of the products after the equated time. "When there is a fraction arising from the division above, there will necessarily be one in the sum of the products. See last case. As every equation must be proved in the same manner as the last, I shall not be 80 minute in explaining the remaining cases. It is recommended to every person who works equation of payments, not to call them right till proved so. EXAMPLE II . Bought of S. Spencer & Co., goods, as follows, viz : and we wish to pay the same on the 1st. July. Which party must allow interest 1 June 12th., due S700 X 0= 0000 " 30th., " 500 X18= 9000 July 15th., " 800 X 33=26400 « 28th., " 600 X 46 = 27600 Aug. 8th., " 400 X 67=22800 3,000 3,000)85800(28, 3-5 days. ^6000 ^ 25800 24000 600)i!22_3 ''3000""^ 28 3-5 days addel to June 12th., gives the equated time, July, 10 3-5 S. Spen- cer & Co. must allow us interest on $3,000, for 10 3-5 days. PROOF OF EXAMPLE II. Days. From July 10 3-5, till June 12th., or equated time, are 28 3-5 X $700=20020 ) ^. „^ From July 10 3-5, till June 30th., or equated time, are 10 3-5 X 800= 5300 ( '^°'"''^" From July 10 3-5, till July 15th., or equated time, are 4 2-5 X 800= 3520 \ From July 10 3-5, till July 28th., or equated time, are 7 2-5 X 600= 10440 V 25,320 FromJulyl0 3-5,tillAug. 8th., or equated time, are 28 2-5 X 400=11360) EXAI\IPLE III. We bought of A. M. Collins & Sons, goods on account, as follows, viz : What is the equated time for payment 1 May 4th., $800, due in 60 days. May 16th., 400, due in 20 days. June 8th., 700, due in 120 days. June 24th., 600, due in 30 days. EQUATING TIME OF PAYMENTS. 219 This must first be transposed before it can be equated, as. The 400 would become due June 5th., $400 X 0= The 800 would become due July 3rd., 800 X 28=22400 The 600 would become due July 24th., 600 X 49 =29400 The 700 would become due Oct. 6th., 700 X 123=86100 $2,500 )137900(55 4-25 days. ^2500 12900 12500 100)J00(=^4^ 2500 The quotient, 55, 4-25 days, added to June 5th., brings the equated time forward to July 30 4-25 days. PROOF OF EXAMPLE III. Days. From June 5th., to equated time, July 30 4-25, are 55 4-25 X $400=22064 ^ From July 3rd., to equated time, July 30 4-25, are 27 4-25 X 800=21728 V 47488 From July 24th., to equated time, July 30 4-25, are 6 4-25 X 600= 3696 ) From equated time on July 30 21-25, till Oct. 6th, are 67, 21-25 X $700=47488. EXAMPLE IV. What is the equated time for paying the following bill 1 New-York, April Gth.^ 1389. H. A. Chittenden, Bought of Carrington &, Lee, Jan. 2nd., 200 yds. black cloth, at $3,00, at 6 months, $600 " 26th., 200 " linen, " ,75, » 4 " 160 Feb. 9th., 160 " carpeting, " 1,00, now due, 160 Mar. 10th., 60 " black silk, " ,80, at 3 months, 48 April 4th., 40 " carpeting, " 1,25, now due, 50 • $1,008 Note. It will be necessary to transpose the above sums and dates, before the same can be equa- ted ; that is, carry each date forward to the time that the sum is due. Feb. 9th., $160 April 4th., 50 X 54 days = 2700 May26th., 150X106 " =15900 June 10th., 48X121 " = 5808 .Tuly 2nd., 600x143 " =85800 $1,008 $1,008)110208(109 days=June 1st. The quotient, 109 days, counted forward from Feb. 9th., will give the time for pay* ing the whole debt, June 1st., 1839. RULE II. When goods are purchased at one date and at a given term of credit, and partial payments have been made before the term of credit expires, 1st. Multiply the whole debit into the given term of credit. 2nd. Multiply each payment made before maturity into the time which has inter- vened since the purchase. 3rd. Subtract the sum of the products last found, from the product of the whole debt multiplied into the given term of credit. 4tli. Divide the remainder by the balance of the debt unpaid, and the quotient will be the number of days or months that the balance of the debt may run from the time of purchase. 220 EQUATING TIME OF PAYMENTS. EXAMPLE V . Bought of Daniel Buck &c Co., January 1st., 1836, goods amounting to $2,400, payable 16 months from date. There were payments made as follows, viz ; In 4 months X $200= 800 Whole debt, 2400 In 8 months X 400 = 3200 Term of Cr. 16 months. In 10 months X 60= 600 14400 660 4600 sum of the products, 2400 38400 product of the whole debt Whole debt, 2,400 4600 into the whole ttrra. Amoimt of payments, 660 1740)33800( 19-j? */o = 19|^ month*. 1,740 remainder due. 1740 16400 15660 740 The balance, $1,740, must be paid about the middle of July, 1837, by equation- RULE III. When two individuals have an account one against the other, of different amounts, and the sums of each are due at different periods, to find the equated time of pay- ments, Ist. Multiply the number of days between dates, into the smallest amount. 2nd. Divide the above products by the difference of the two accounts, and the quotient will be the answer. 3rd. If the earliest date is affixed to the largest amount, the quotient is counted back from the earliest date. 4th. If the latest date be affixed to the largest amount, the quotient is counted forward from the last date. E X AMPLE VI . David Watkinson & Co., bought of James Bunce, goods as follows, viz : Days. Due May 1st., $200 Due May nth., 800 XlO= 8000 Due May 21st., 600 X 20 = 12000 Due May 31st., 400 X 30 = 12000 2,000 )32000( 16 days added to May Ist., gives the 2000 equated time May, 17th. 12000 12000 D. Watkinson & Co., owe James Bunce $2,000, payable. May 17th. EX AMP LE VII . James Bunce bought goods of D. Watkinson & Co., as follows, viz ; Days. $1,100, due Aug. 1st., $1,100 600, due Aug. 31st., 600 X 30 = 18000 800, due Sept. 10th., 800 x40=32000 2,500=2500)50000( 20 days added to Aug 1st., give* 5000 the equated sime Aug. 21st. 0000 Hence, James Bunce owes D. Watkinson & Co., $2,500 on Aug. 21st. EQUATING TIME OF PAYMENTS. 221 Watkmson & Co. wish the $2,000 which they owe James Bunce, on May 17th., to remain unpaid till the 21st. of August, which will then be canceled by the $2,500 that Bunce will then owe them. Bunce assents to this proposal, provided the balance of the two accounts, $500, can remain unpaid till the interest on ii ($500,) shall be equal to the interest on the $2,000, from 17th. May till 21st. August. When shall Watkinson & Co. be in cash for the $500 1 The foUownig equation must be worked by Rule 4th., the last tv)o having been worked by Rule 1st., in order to form this equation. EXAMPLE VIII. Watkinson & Co. Dr. J. Bunce, Dr. $2,000 due. May 17th., 1837. $2,500 due, Aug. 21st., 1837. 96 number of days between 2,000 the two dates. 12000 500 Balance of the two ac'ts. 18000 500)192000(384, 384 days added to Aug. 21st., gives the time to pay $500, Sept. 9th., 1838. From Aug. 21st., 1837, till Sept. 9th., 1838, are 384 days X $2,500=960,000 From May 17th., 1837, till Sept. 9th., 1838, are 480 daysX 2,000=960,000 EXAMPLE IX. By Account-Current with P. A. Brown, he owes me $2,000, which is due Auj 21st., 1837, and I owe him $2,500, due, May 17th., 1837. When shall I pay the ba anceofthe two accounts, ($500,) that neither party shall receive interest 1 Dr. P. A. B. N. H. Dr. Due Aug. 21st., $2,000 Due, May 17th., $2,500 Difference of dates, 96 2,000 1 2000 500 difference of debts. 18000 500)192000(384 days counted back from May 17, gives the equated time April 28th., 1836. From May 17th., 1837, back to April 28th., 1836, are 384 days X 2500=96,000 From Aug. 21st., 1838, back to April 28th., 1836, are 430 days X 2000=96,000 In this example. Brown is entitled to interest on the amount I owe him, $2,500, from May 17th. till Aug. 21st., when $2,000 of it is canceled by what he owes me. Then the balance, $500, was to have been paid so much earlier, (April 2nd.,) as that its interest should be equal to the interest on $2,500, from the 17th. of May till the 21st. of August. It is unnecessary to repeat examples, as the foregoing Rules will equate the time on any Bills or Account-Current. EQUATION OF DIVIDENDS. EQUATION OF DIVIDENDS A. B. & C. invest in trade $20,000, of which A. invests $8,000, B. $7,000, and C. $5,000. They gain on their business $3,558 00 ; what is each partners share of »^ the gain. ^ RULE. Divide the amount of gain by the whole capital and the quotient will be the per cent, gained ; multiply the per cent, gained by each one's part of the capital and the quotient will be the share required. OPERATION. $20,000) 355800 17,79= gain per cent. 17,7,9=per cent, gained. 17,7,9=per cent, gained. 8,000 =A's investment. 7,000 =B's investment. 1,423 20=A's share. 1,245 3=B's share. 17,7,9 =per cent, gained. 1,423 20=A's share. 6,000 =C'8 investment. 1,245 30=B's " 889 50 = C's 889,5000 =C's share. 3,558 00= whole gain. When Time is considered, multiply eacb one's investment by the time he continues it in trade, and use the product for his share. Then proceed as in the first case. LOSS AND GAIN. When Goods are bought and sold at given prices, to find the per cent, you gain or lose. After subtracting the difference between the buying and the selling price, and adding two cyphers to that difference, divide it by the buying price. The quotient will be the per cent, that is gained or lost. If I buy goods at 79 cents per yard, and sell them at 93 cents, what do I make per cent. 1 93 selling price. 79 buying price. Buying price, 79)1400 00 added to the difference. ' 17t Ans. I make 17 cents on each dollar's worth I buy. If I buy goods at $3,26 per yard, and sell them at $3,08, what per cent, do I lose T 3,26 buying price. 3,08 selling price. Buying price, 3,26)1800 00 added to the difference. 5t Ans. Lose 5 per cent. When goods are to be sold, and it is advisable to gain or lose a certain per cent. To gain a certain per cent. Add the per cent, to be gained to 1,00, and multiply it into the cost price. INTEREST. Jf I buy paper at $4,44 per ream, and wish to sell it so as to make 16 per what must I sell it for per ream 1 444 116 per cent, to be gained, added to $1 00. 2664 444 444 5,15,04 Ans. $5 15 per ream. To lose a certain per cent. Subtract the per cent, you would lose, from 1,00, and multiply the remainder into the buying price. If I buy carpeting at $1 09 per yard, how much must I sell it for to lose 2i per centi 109 97,5 per cent, to be lost, subtracted from $1,00 leaves 97,5. 545 763 981 1,06,275 Ans. 1,06 per yard. INTEREST, To find interest at 6 per cent, multiply the principal by 1-2 the even number of months, and 1-6 part of the days, (if any.) What is the interest on $500, for two years and two months, at 6 per cent. 1 500 1)26 months. 13 rate per cent. 13 Half the even number of months.* 1500 500 65,00 Ans. "What is the amount of a note given Jan. 16th., 1835, and paid Jan. 4th., 1836, at 6 per cent.; principal being $700 ■? • Years. Months. Days. 12 30 tl836 1 4 TOO principal. 1835 1 16 58 rate interest, 5 cents, 8 mills. 11 18 5600 3500 1)11 30 daya. 40,600 interest at 6 per cent, ^ even months, 5 -18 days. 700,00 principal. 6")48 $740,60^0 amount. Ans. 1-6 part of the days, 8 * When the rate is 6 per cent, wc get one cent on a dollar every two months ; consequently, 9 cents for every 12 months ; 9 cents for 18 months ; 12 cents for 24 montlis. Hence one half the number of months gives the rate per cent, for any given time. t The most simple and expeditious method of finding time intervening between given dates, is the one pursued above, which is merely Compound Subtractioy. 224 CUBIC MEASURE. Short way offindmg Interest for any small number of Days. — Multiply the whole number of days into the principal, and divide the product by 60. EXAMPLE What is the interest on $4 20, for *77 I And what is the interest on $300, for days at 6 per cent 1 j 23 days at 6 per cent 1 420 300 77 23 2940 900 2940 600 6,0) 32:34,0 6,0) 690,0 5,39 Ans. 1,15 Ans. This method is adopted by many business men, and, though it is charging 6 per cent, for 360 days instead of 365, it makes no material difference except the sums be large. CUBIC MEASURE. To find the contents of Cases, Bales, Boxes, and any solid body ; Multiply the length into the width, and that product by the height, the last product will be the answer. EXAMPLE . How many solid feet in a box 4 feet wide, 5 feet long and 6 feet high 1 4 width. 5 length. 20 6 height feet 120=^71*. How many cubic feet in a bale which is 3 feet 6 inches long, 3 feet wide, and 6 feet high? 3,5 length 12)6 3 width, ,5=6 inches. 105 6 height. feet 63,0 Ans. How many cubic feet in a box 13 feet long, 12 feet 3 inches wide, and 8 feet 9 inches high 1 12,25 width. 12)3J 13 length. ,25=3 inches. "3675 1225 159 25 8,75 height into 12)9 t ,75=9 inches. 1393,4375 Ans. * If the rate per cent, is 6, we get 1 cent for every 60 days ; 5 mills for 30, (that is, one month ;) and one mill for every 6 days ; consequently, we obtain the correct answer, whether we divide the number of days by 6, and make the one sixth part of the days the multiplier, or multiply the whole number of days into the principal and divide the product by 60. t When inches are given, as in the above cases, multiply by the decimal of a foot. CUBIC MEASURE. 225 The decimal expressior for 1 inch is ,083t a i " 2 inches u ,166t « <( u < ( " 3 " 4 " 5 " 6 u (( (( ,25 ,333t ,416t ,5 « « " 7 u ,583t it ( » 8 ti ,666t " ' " 9 (( ,75 « < " 10 (( ,833t « ' " 11 (( ,916t ANOTHER METHOD OF OPERATION. How many feet in a box which is 8 feet long, 3 feet 4 inches high, and 4 feet 5 inches wide. Feet. In. 3_4=:height. 8-0=length. 26-8 4— 5= width. 11-1-4 106-8-0 117—9—4 number of solid feet. I first multiply 8 feet into 4 inches which =32 -r- 12=2 feet 8 inches. I next multiply 8 feet into 3 feet which =24 feet +2 feet 8 inches =26 feet 8 inches. I next multiply the 4 feet 5 inches, the width, into the foregoing product, first multiplying 5 into 8, and dividing the product by 12 — then 5 into 26, and dividing the product by 12. Next 4 into 8 and dividing the product by 12, and 4 into 26, which gives the answer required. To find the number of square feet (length and breadth given) multiply the length into the breadth. And to find the square yards, divide the above number of feet by 9=1 square yard. How many square yards in a piece of oil cloth carpeting 16 feet long, 1 1 feet 9 inches wide. 11,75 16 7050 1175 9)188,00=fe et squar e. 20,8= yards square. In a piece of plastering 14 feet 6 inches, by 7 feet 6 inches. 14,5x7,5 = 108,75-^9=12 yards. 29 DRAFT AND TARE. Draft is an allowance made in the weight of goods for waste. The allowance for draft at the Custom-houses and by merchants is as follows, viz • lbs. lbs. lbs. On 112 1 Over 112 and less than 224 2 " 224 " " " 336 .. " 336 " " " 1120 4 " 1120 " " " 2016 7 " 2016 9 An allowance for draft is hardly known in any market but in Boston, Mass. Tare is an allowance made for the weight of the cask, box, or bag, which contains .the merchandise. On some articles of merchandise the Tare is fixed by law ; on others the tare is fixed by the custom of merchants and tradesmen ; the former is called the legal, and the latter the actual tare. The ad valorem rates of duty, upon goods, wares, and merchandise, (taken at the Custom-houses, one of which is located at every considerable seaport) are estimated by adding 20 per cent, to the actual cost, if imported from Cape of Good-Hope, or from any other place beyond the same, and 10 per cent, on the actual cost thereof, if imported from any other place or country, including all charges, commissions, outside packages. TARE ALLOWED ON GOODS The following is the Tare goods. Almonds, in bags, . . AUum, "casks, . . Candles, "boxes, . Chocolate ti It Cheese, " baskets, Cinnamon , " mats, . "boxes, . Cloves, " casks, . Corks, " bales, . Cocoa, " casks, . « " bags, . Cotton, " bales, . " serrons, Coffee, "bags, . « "bales, . " casks. Copperas (( u Figs, . " boxfes, 60 " drums, Glue, " " bales, . Indigo, " barrels. « " other casks <( " serrons, allowed at the Custom-house, and in buying and selling 3 per cent. 12 (( 8 « 10 (( 10 (( 8 « 20 " 15 (( 15 " 10 (( 1 « 2 <( 6 u 2 11 3 " 12 n 12 it 9 pounds. 10 per cent. 5 (( 12 (( 15 it 10 (t Nails, . in casks, . 8 per cent Nutmegs, " (( 12 « Pepper, . " bags, . 2 (( " . . " baes, . 5 « " . . " casks, . 12 « Pimento, bags, . 3 « (C (( bales, . 5 (( Raisins, . " boxes, . 6 ({ (( (( casks, . 12 (( Salt, Glauber," " 8 « Segars, . " boxes, . 18 " Soap,. . " " 10 (( Shot, . . " casks, . 3 " Sugar, • " "(notloE if) 12 ({ it ■ i boxes, . 15 (( it . t bags, . 5 « Sugar candy, ' boxes, . 10 <( Twine, . ' casks, . 12 (( " . . " bales, . 3 " Tea, .' .' " 1 chest. 22] rounds. " . . " h " • 14 " it 80 lbs. & up- wards, gro ss, 20 (( DEFINITIONS COMMERCIAL TERMS. Abandonment, signifies that act by which persons insured against risk, in conse- quence of any particular damage or ac- cident, happening to the ship or cargo, re- nounce or abandon the property insured to the underwriters, and call upon them us for a total loss, the insurers being enti- tled to all that is saved. Acceptance, is a promise to pay a draft Gccording to terms therein named, and which is signified by the drawee's writing, accepted, on the draft, together with his name. Accommodation. A friendly agreement, among merchants and traders, to accept and indorse bills and notes to accommo- date each other, in order to make them ne- gotiable. Account-current, contains a statement of transactions between one person and another, yet unsettled, in the form of Dr. and Cr. Accounts-current are mostly kept by agents with their employers, and are rendered once in 6, or 12 months. AccovMt-sales. A minute account* of goods sold on commission, made out by the agent, and transmitted by post, or otherwise, to the consigner of the same. Admeasurement. The mode of ascer- taining the exact quantity of any commo- dity, work done, &c. Advance. Money paid on goods con- signed, before they have been sold. Adventure. When a person sends goods abroad to be sold, on his own account and risk. Agent. A person appointed to trans- act business for another. Any person may draw, accept, or indorse bills through his agent. Where a man pays money through his agent which ought not to be paid, either the agent or employer may recover it. Agreement. An agreement is a mem- orandum, article, minute, importing the consent or concurrence of two or more persons, the one in disposing of, the other in receiving property. Idiots, lunatics, married women, and infants, (except for necessaries,) and persons under any kind of duress, are incapable of entering into an agreement. Assignee. A person appointed by a bankrupt to manage his affairs. Affidavit, signifies an oath in writing, sworn in the presence of one who is duly authorized to take the same. Assignment. An assignment is an ab- solute transfer of all the interest the as- signor has in the property assigned. Authority. A delegated power, by which one party authorizes another to act generally or specially in his name. This pow^er may be given verbally or in writing, the latter mode being preferable. Balance of Trade. This term is a{)- plied to money balances, to be paid by one nation trading and carrying on business with another. So far as the articles expor- ted and imported pay for each other, there is no balance, but on which side the ex- ports fall short in their amount, that nation is said to have the balance of trade against it, and vice versa. Balance, is in Book-keeping, the differ- ence between two sides of an account in the Ledger Bankrupt. -A merchant, or trader, who is unable to pay his debts. Bill of Exchange. An order, or request in writing, addressed to another person, to pay a certain sum of money on demand, or at a time therein specified, to a third person, or to his order ; or it may be made payable to the bearer. Bill of Entry. A written, and minute list of goods, imported, to be given in to the Custom-house. Bank Credit, is when an agreement exists between persons to draw on each other, at any time, for certain amounts of money. Bond. A bond or obligation, is a deed whereby the obligor, binds himself, his 228 DEFINITIONS OF COMMERCIAL TERMS. heirs, executors, and administrators, to pay a debtor and creditor, to accept a certain a certain sum of money, to anotiier, at an appointed day. Bill of hading. A document given by the master of a vessel, acknowledging the receipt of certain goods shipped on board, whereby the contract to deliver the same in good order and condition, at the port of consignment. Bottomry or Respondentia. Bottomry is a contract, in nature of a mortgage, of a ship, in which the owners, borrow money to enable them to (it out a ship, or to pur- chase a cargo for a voyage proposed : in case the ship or cargo is lost, the lender looses his money, according to the tenor of the contract. In case of safe arrival, the lender is entitled to the lent money and marine interest, being more than com- mon interest. Brokers^ Ejcchangc. Exchange brokers, lire those whose business is to transact details attending the negotiation of bills of exchange, buying and selling bullion, and foreign and provincial bank notes. A broker by knowing the mutual wants of merchants, is an useful intermediate agent. Brokers^ Insurance. ^ Their business is to insure ships and merchandise from the jjcrils of sea, and to settle the lo.sses and average that may occur. Broker:}^ Ship. Those employed in buying and selling ships, either by private contract, or public sale. Brokerage. A certain per cent, paid, on the purchase or sale of goods, bank, insurance, and stocks, &c. Carrier. Every person carrying goods for hire, and a stipulated sum, is called a carrier, and as such, he is liable for any loss or damage that may happen to them, while in his custody. Circular Letters. Notices sent abroad by merchants, on commencing or closing their business, or making alteration in the same. Commerce. The exchange of what is superfluous, for that which is necessary. The articles termed necessaries of life, wanted by all men, and the most part of which are produced in all parts, are easily exchanged by way of barter. Cocket. A certificate given at the Cus- tom-house, signifying that the duty has been paid on certain goods, entered for exportation. Commission. The percentage allowed by the merchants and traders to their cor- respondents and agents, for transacting the business intrusted to their care. Composition. An agreement between ' sum in discharge of all demands. Consideration. The money or other beneficial act done towards or paid to an- other, for which a certain equivalent be- neficial advantage is to be communicated. Consul. An officer established by vur- tue of a commission from all foreign countries, and whom nations permit, either from custom or treaty, to reside in other territories. Contract. An agreement between two or more persons, founded upon some law- ful consideration. Every contract ought to be full, certain, and complete. Contraband Goods. Such goods as masters of vessels may not take on board ; they being prohibited to be exported, by the positive law of the country, and when disregarded, the ship or cargo, is liable to forfeiture or confiscation. Copartnership, is when two or more persons unite together, and agree to parti- cipate in profit and loss, according to their respective shares in a joint stock. Circulating Medium. A term imply- ing money, or whatever circulating be- tween man and man, serves for payment in commerce. Bank notes, and all bills payable on demand, come under this head ; but bills payable at a fixed period do not, although in reality, they answer tlic pur- pose of a circulating medium. Course of Exchange. The current price of exchange on bills drawn and sold by individuals in one country on those of another. Consols. Consolidated annuities, pro- duced by £4,000,000 of British Stocks. (See page 208.) Custom-house, is where a record of goods imported is kept, and the duties im- posed by law are paid. Curreney. The value for which the money of any particular country will pass or circulate, which varies in different places. Days of Grace. Certain days after the time limited by the bill, which the ac- ce^ptor has a right to demand in payment of the same. (See page 53.) Damages. The compensation given by a jury for any injury which a plaintiff has sustained. Debenture. A certificate delivered at the Custom-house, when the exporter of any goods or merchandise, has complied with the regulations prescribed by certain acts of Congress, in consequence of which he is entitled to a bounty, or drawback on their exportation. Dishonor. A bill is said to be dishon- DEFINITIONS OF COMMERCIAL TERMS. 229 ored, when the person on whom it is drawn, does not accept or pay it. Demand, is calling on a man for a sum of money or any other thing due. Discaunt, is an allowance made upon prompt payment, in the purchase of goods ; also the interest allowed in advancing money upon bills not mature. Dividend. A particular portion of property. Demurrage. An allowance made to the master of a ship, by his freighters, by being detained in port longer than the time appointed and agreed for his depar- ture. Dock, where ships are built, repaired, laded, and unladed. Drawee. The person on whom a fo- reign or inland bill is drawn. Duty. A certain per cent., fixed by law, to be paid on all goods exported or imported. Earnest, is the money advanced, to bind the parties to the performance of a verbal agreement. Effects, are value in money, merchan- dise, real-estate, debts, &.c. Exchange, is paying or receiving money m one country for a like sum, in another, by means of bills of exchange. Emporium. A commercial city, where merchandise is, to a great extent, exported and imported. Failure. A person is said to fail or become insolvent, when he is unable to pay his debts. Factor. A merchant, agent, or corres- pondent, residing abroad ; and in some cases, constituted by a letter of attorney, to sell goods and merchandise. Finances. Public revenues, or income. Firm,. Two or more persons engaged m mercantile business, are called a firm. Forestalling, is buying goods before they reach the usual market, in order that the buyer may sell them at an exorbitant price. Freight. The money paid for the car- riage of goods, it is sometimes taken for the burden, or the cargo of the ship. Guarantee, a power that agrees to cer- tain stipulations fulfilled. Honor, is applied to a draft, when it is accepted, or paid by the drawer — it is then said to be honored. Importation. When goods are brought from one country to another, they are said to be imported. Inventory. A detailed account of a person's effects. Insurance, Marine. Insurance is an indemnity, whereby one party in conside- ration of a stipulated sum, undertakes to indemnify the other against some specific loss, to which he is exposed at sea. Invoice, an account of goods sent off, either to order, or consigned, with the valuation, &c. Indorsement, a term usually applied to the holder of a negotiable instrument, when he assigns his interest in the same, to some third person, by signing his name to the back of the instrument. Interest of money, is the premium paid for the sum loaned. Interest, Compound, or interest upon in- terest, is when the interest instead of be- ing paid is added to the capital sum, and becomes an increased capital. Law, Commercial. A system of cus- toms acknowledged, by all commercial nations, and constitute a part of the ge- neral law of the land. Lease. A written agreement, which secures to the holder, the use of certain houses or lands, for the term specified therein. Letter of Credit, is one which entitled the holder to draw a specified amount of money on account of the giver. Laws of Nations. A system of rules deducible by natural reason, from the im- mutable principles of natural justice, and established by universal consent, among the civilized inhabitants of the world. License. A privilege from proper au- thority, to carry on a certain business for which the holder pays a duty. Manifest. An account which a captain of a vessel must give of the goods, he brings into port, before they can be landed. Mart. A place of public sales and pur- chases. Maratime Laws, relate to branches of commerce carried on by sea. Maximum and Minimum, the former signifies the greatest and the latter the smallest piece of any saleable property. Mint, is the place where bullion is coin- ed, under the supervision of government, for commercial purposes. Merchant, a person who traffics in com- modities, or buys and sells in gross. Monopoly, when a man gets commodi- ties into his hands in such a manner as that none can sell or get gain on them ex- cept himself. Money, Real. Gold and silver coins, rendered current at a certain value by au- thority of states (See. Motley, Imaginary. Denominations used to express sums of money which have no real species, as the pound, &c (See page 215.) 230 DEFINITIONS OF COMMERCIAL TERMS. Non-claim^ where the creditor cannot enforce his claim, in consequence of not making it seasonably. Neutrality. A state not engaged in alliance with either of the belligerent pow- ers, is called neutral. Neutral Ships, are those belonging to nations which remain neutral, in regard to belligerent powers. Obligee, he to whom a bond is made payable. Obligor, the person who is bound to pay the obligee. Payment, is the purchase money for goods, to be made by the buyer to the sel- ler, as agreed upon. Pilot. A person taken on board at a particular place, for the purpose of con- ducting a ship through a river, road, or channel, or from port to port. Policy of Assurance, the instrument, that binds the insurers to pay, in case of loss. Premium. Money paid for insuring property against losses. Promissory Note. A written promise to pay a specific sum of money, at a cer- tain time. Protest. If a bill is refused acceptance or payment when due, it is handed to the notary public who protests it. Price-current. A narration of the goods in market, with their selling price affixed to them. Primage. A certain per cent, on the amount of freight, allowed to the captain of the vessel. Qnarantine. The time appointed for a vessel arriving from any country, infected with any contagious disease, to remain in certain limits, until it is without danger of infection. Rebate. The per cent, allowed to the purchaser of goods, for prompt payment. Respondentia, is where goods are pledged to obtain money, as in bottomry, on the security of the vessel. Retail. Buying and selling goods, on on a small scale. Returns. When money or goods are sent to the consigner, by the consignee. Remittance. The payment of money in one country, to another party in another country, or at a distance by bills of ex- change, or orders. Sample. A specimen of commodity for sale. Salvage. A certain sum allowed those who have saved property from the perils of sea and fire. Searcher. An officer appointed to search vessels bound outward, for contra- band or uncustomed goods. Sea-worthy. A ship is said to be sea- worthy, when she is every way fitted for her voyage. Smuggling. Importing or exporting goods, without paying custom-house du- ties. Staple Goods. The principal produce of a country. Stopping Goods in Transitu, is when the consigner suspects the credit of the consignee, having his goods on the way, prevents their finally reaching the con- signee. Supercargoes, are persons employed by commercial companies or private mer- chants, to take charge of the cargoes, they export to foreign lands, to sell the same, to purchase for returns, &c. Stock. Money raised by a -company, to be employed in trade. (See page 149.) Tare. A deduction made to purchasers for weight of the box, cask, or sack, in which goods may be sent. Trade, is used in many cases to signify commerce ; also, manufacturing and traffic of goods. Tellers. Persons employed in Banks, Exchange offices, &c., to receive and pay money. Tonnage. The capacity of a vessel to stow and transport goods, determined by admeasurement. Underwriters. Individuals or com- panies, who insure any property against losses or damages. Usance. A certain period after the date of a foreign bill, limited for its payment, ac- cording to the custom of the places re- spectively, through which the exchanges pass ; double usance, is double the accus- tomed time ; and half usance is half the time. Value, has two meanings. When it expresses the utility of an object, it may be called value in use ; when the power of purchasing other goods, value in exchange. Usury, is receiving a higher interest for the loan of a sum of money, than is allowed by the laws of the country, where the transactions occur. HARTFORD COMMERCIAL ACADEMY. 162\ Main-Street. The design of this School is to quahfy young men for the Counting-Room, in a superior and eocpeditious manner. The following branches are taught upon the most approved plan, by the lesson or quarter of eleven weeks, viz : PENMANSHIP. Individuals by spending a short time in this School, may ac- quire a free, flowing, and elegant style of writing. COMMERCIAL ARITHMETIC. Young men who have neglected, or wish to review, the Arithme- tic, may, in a short period, acquire simple and expeditious methods of performing the various computations in business. BOOK-KEEPING by SINGLE and DOUBLE-ENTRY. Individuals now in business, or those who are anticipating it, are here qualified to act as Book-keepers in the most responsible situa- tions. The learner is instructed in the most approved methods of classifying merchants' accounts, and of opening, closing, and re- opening books in every variety of business. MERCANTILE CORRESPONDENCE. Pupils in this branch, will be made familiar with composing all the forms of bills, &c.. useful in the routine of business. N. B. Young men engaged through the day, can take lessons in the evening or morning, in separate apartments. Lessons in the Ancient and Modern languages, and Surveying, will be heard. Merchants' Books written up, and disputed and complicated ac- counts adjusted. N. HARRIS. Principal. References. Gov. Ellsworth, Hon. Thomas Day, Rev. Dr. Hawes, Thomas K. Brace, Esqs. TESTIMONIALS The names affixed to the following certificate, are selected from the many which have been received, testifying to the merits of this work. "Having examined the "System of Practical Book-keeping," by Mr. N. Harris, Principal of the Hartford Commercial Academy, we do not hesitate to recommend it to the patronage of the public, believing it to be better adapted to the purposes of instruction than any work of the kind with which we are ac- quainted, and containing a more full and complete definition of the various Books and Terms used in mercantile business." H. A. PERKINS, Cashier, Hartford Bank HIRAM RIDER, State Treasurer, Z. PRESTON, Firm of William H. Imlay 4 Co, H. ALDEN, Cashier, Conn. River Banking Co. S. L. LOOMIS Secretary, JEtna Insurance Co. O. ALLEN Book-keeper, Savings Bank. JAMES BOLTER, Firm of Hills 6f Bolter. E. A. PECK, Firm of Smith 4 Peck S. p. TEACHER, Firm of J. Olmsted ^ Co. V. A. BAYLEY, Firm of J. M. Bunce & Co. E. W. COLEMAN, Firm of Richmond <5- Coleman. D HILLYER, Secretary, Collins^ Manufacturing Co. JOHN H. STRONG, Agent, Windsor Manufacturing Co, FRANCIS FELLOWS, Late Principal Mount Pleasant School. W. N. MATSON, Late Principal Hartford Grammar School. S. SPENCER & SON. ^■- 1^ -» THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO 50 CENTS ON THE FOURTH DAY AND TO $1.00 ON THE SEVENTH DAY OVERDUE. OCT 5 1932 FEB 7 195i N0V15195A !!j FEB 71955 , 5 Nov'57FC REC'D LD JAN 3 1958 LD 21-50m-8,32 ' "^ C^^JC-yW^ T*'- , 1118H 7^.