UC-NRLF $B 3fi 7MD JM..J B O 0JL.E 'mw&mAL MACMILLAN'S COMMERCIAL SERIES Edited by CHEESMAN A. HERRTCK EVERYDAY BOOKKEEPING MACMILLAN'S COMMERCIAL SERIES Edited by Cheesman A. Herrick PRESIDENT OF GIKAKD COLLEGK, FORMERLY DIRECTOR OF SCHOOL OF COMMERCE, PHILADELPHIA CENTRAL HIGH SCHOOL Altmaier's Commercial Correspondence and Postal Information A simple, practical textbook widely used with great success. Makes English compo- sition interesting, BiGELOw & Arnold's Elements of Business Arithmetic A practical, elementary treatment of the subject, suitable for use as a review book at close of grammar school study of arithmetic. Bogle's Comprehensive Bookkeeping A complete manual for the use of students in commercial courses. Blanks and a Teachers' Manual, made to accompany this text, are available at moderate i)rices, and these books form a good working basis for the commercial course in secondary schools. Herrick's The Meaning and Practice of Commercial Education This book explains the purpose and describes the actual working of commercial schools. It treats commercial education from various points of view, and shows that this form of instruction is a result of present economic conditions and a natural step in our national development. An appendix supplies a number of curricula for schools of various grades, and there is a serviceable bibliography of the subject, Herrick's History of Commerce and Industry Presents review of world history from the commercial and industrial point of view with enough of general history to furnish a background. Hoover's Science and Art of Salesmanship This book presents salesmanship as the newest subject for commercial schools. Can- not fail to be of interest and profit even to those who do not follow salesmanship as a vocation. Thurston's Business Arithmetic for Secondary Schools The book is particularly fitted for use in commercial courses, but it may be used in any practical course in high school arithmetic. It deals with processes and business forms used in modern commercial practice. Trotter's Geography of Commerce In this book there is a union of the two phases of thought which form the basis of the geography of commerce. It interprets the activities of men and of organizations of men as they are dependent upon physical conditions. MACMILLAN'S COMMERCIAL SERIES EVERYDAY BOOKKEEPING BY ARTEMAS M. BOGLE, A.M. DEPARTMENT OF MATHEMATICS, HIGH SCHOOL KANSAS CITY, KANSAS • * ■' ' •**•,*'•• ^ '>' THE MACMILLAN COMPANY 1918 All rights reserved - H^^/'^ ^kl COPYBIGHT, 1917, By the MACMILLAN COMPANY. Set up and electrotyped. Published April, 1917. Reprinted December, 191 7. NorfaoolJ ^re00 J. S. Gushing Co. —Berwick & Smith Co. Norwood, Mass., U.S.A. PREFACE Everyday Bookkeeping presents an easy method of keeping accounts. It was prepared for the instruction of those who may desire to keep some record but who do not find the methods used in commercial bookkeeping suited to their needs. Each kind of account is treated separately, and the treatment is made elementary enough for a child to understand as soon as the matter treated comes within his or her experience. Not only is each topic treated sepa- rately, but each treatment is, in the main, independent of the others. This makes it possible to take up the chapters in any order, and those who wish instruction on a particular point can get that without having to study everything up to that point. The book may thus serve as a handbook on the topics treated. There are taken up also those forms of commercial paper, such as notes, checks, and receipts, for which nearly every one has some use. The business statement is also treated. Following this there are a few exercises in which an account is to be written with each item. This gives a review and it also illustrates the principle of double entry bookkeeping. There are also given suggested forms of books with special columns. These are often convenient for accounts of limited range. Special column books are also treated, as they are extensively used in some lines of business. Some portions of this book can be taught to pupils who are quite young by giving them an occasional lesson on 382971 vi PREFACE some topic, as the cash account, and letting it cover a con- siderable period. One who masters the contents of this book will have gained information about common business forms, will have a simple method of keeping accounts, will have learned the principles of debiting and crediting, and will have laid a foundation for the study of commercial bookkeeping. This book is published in the hope that it will contribute in some degree to the forming of more systematic business habits by those in the schools who are soon to be engaged in the activities of life. A. M. B. March 1, 1917. CONTENTS Preface Editor's Introduction . Everyday Bookkeeping Introductory Statement . About Forms and Blank Books Debits and Credits . Account .... Chapter I — The Cash Account Exercise 1 — A Boy's Cash Account Illustration of the Cash Account Exercise 2 — A Young Lady's Cash Account Exercise 3 — Another Cash Account for a Boy Exercise 4 — A School Girl's Cash Account Exercise 5 — A Farmer Boy's Cash Account Exercise 6 — A Girl's Cash Account Exercise 7 — A Carpenter's Cash Account Exercise 8 — A Laborer's Cash Account . Another Plan for Keeping an Account Exercise 9 — A Cash Account for Basket Ball Team Exercise 10 — A Cash Account for Baseball Team Exercise 11 — A Farmer's Cash Account Exercise 12 — A Teacher's Cash Account Suggestions about Keeping Accounts Chapter II — Personal Accounts Exercise 1 — Account with Samuel Wilson Exercise 2 — A Farmer's Account with a Blacksmith Exercise 3 — A Blacksmith's Account with a Farmer Exercise 4 — An Account between Two Neighbors , Exercise 5 — Pupil's Account with Charles Baldwin Exercise 6 — Pupil's Account with J. H. Stewart Exercise 7 — Pupil's Account with W. S. Duff PAGE V xi 1 1 1 2 2 3 4 5 6 7 8 9 11 13 14 15 15 18 19 21 23 26 26 28 29 29 30 30 31 VIU CONTENTS Chapter III — Property Accounts .... Exercise 1 — Account with a Refreshment Stand Exercise 2 — Account with a Printing Press Exercise 3 — Account with Hotbed Plants Exercise 4 — Account of Experiment with Leaming Corn Exercise 5 — Account of Experiment with Leaming Corn Exercise 6 — An Account with a Flock of Chickens . Exercise 7 — Account with an Orchard for Season . Exercise 8 — Account with Dairy Cow "Maude" Exercise 9 — Account with Field of Wheat — 40 Acres Exercise 10 — Account with Field of Corn — 35 Acres Exercise 11 — Account with an Ice Cream Stand Exercise 12 — Account with a Soda Pop Stand Exercise 13 — Account with a Caf6 . Exercise 14 — Account with a Bird Home Exercise 15 — Account with Shop Work . Exercise 16 — Account with a Sewing Parlor Exercise 17 — Account with an Art Shop Exercise 18 — Account with an Automobile Chapter IV — Promissory Notes Exercise in Writing Notes Chapter V — Account with Notes Exercise 1 — Accounts with Notes Exercise 2 — Accounts with Notes The Bill-Book .... Exercise for the Bill-Books Chapter VI — Orders and Checks Exercise in Writing Checks Chapter VII — Account with a Bank Exercise 1 — Account with The Home State Bank Exercise 2 — Account with The Commercial National Bank Accounts with a Savings Bank . Exercise for Savings Bank Account . Chapter VIII — Incidental Accounts Exercise 1 — An Account with Interest Exercise 2 — An Account with Expenses . Exercise 3 — An Account with Commissions Exercise 4 — An Account with Pasturing Cattle Exercise 5 — Account with Opening Riverview Addition CONTENTS ix PAGE Chapter IX — Receipts 78 Exercise for Writing Receipts 79 Chapter X — Bills or Invoices 80 Exercise for Writing Bills 81 Chapter XI — Statements 82 Exercises for Statements 86 Chapter XII — Double Entry 90 The Proprietor's Account . , 91 The Loss and Profit Account 91 Illustration of Accounts 92 The Trial Balance 96 Finding the Present Worth 96 Illustration of Accounts with Closing Entries ... 98 Directions for Writing a Complete Exercise .... 100 Set I — Transactions for a Farmer . . . . . . 101 Set II — Transactions for a Young Man 104 Chapter XIII — Special Column Books 109 Household Expenses 109 Exercise for Household Accounts 109 A Form of Special Column Journal for Household Accounts . 110 A Suggested Exercise — Determining Cost of Meals . .114 Another Form of Book for Household Accounts . . .115 Exercise for a Physician's Cash Account . . . .116 A Form of Special Column Cash-Book for a Physician . .118 Illustration of a Special Colum': Cash-Book Suitable for a Farmer's Wife 120 Index and Glossary 123 EDITOR^S INTRODUCTION The book which follows is designed to serve the double purpose of furnishing an easy treatment of applied mathe- matics and a brief practical system of accounts. It ought to be a highly useful book in either direction. For quite twenty years students of educational methods, and observers of educational tendencies, have united in the statement that the results from the teaching of arithmetic have not been commensurate with the time and effort directed to this end. This is likely due to the vague and indefinite instruction given ; arithmetic generally is not linked up with anything practical. Such computations as are presented in this manual offer the sort of work in arithmetic on which the pupils are likely to be tested after they leave school. More attention to such exercises as these and less to such matters as square and cube root, progressions, and ratio and propor- tion, would lend interest and give a better return. In his manual on the teaching of arithmetic Professor David Eugene Smith comments thus in describing the work of the eighth school year: ^^It is not worth while to teach an elaborate form of bookkeeping to the average citizen. On the other hand it is necessary that every one should know how to keep simple accounts and this work should be taken up in this year." In describing the charac- ter of the proposed work Professor Smith further says, ^'It should relate to the income and expenditures of daily life in the home, on the farm, or in the shop." xi xii EDITOR'S INTRODUCTION While the time spent on arithmetic has failed to give an adequate return for the investment, the same statement is even more true of the time spent on bookkeeping. The early treatises on this subject with their cumbersome day books, journals, and ledgers have to a surprising degree continued, and to them have been added elaborate and highly complex special books which seek to give a complete articulated system of bookkeeping. Business schools have set themselves to give actual business experience and to furnish full-fledged bookkeepers. This has not only meant a large waste of the student's time, but it has, in addition, supplied what is an undesirable product. Business men testify again and again that book- keepers are most useful to them when they can perform the fundamental operations rapidly and correctly, and know in addition the principles of accounts. Much of the highly specialized training in bookkeeping given in commercial schools is found to be of little value when the future book- keeper takes up his work. It is not the bookkeeping of the practical world and he is not employed to carry out his attenuated system. Instead, he must apply simple princi- ples and perform correct computations for a system of bookkeeping already in operation in the office or business with which he connects himself. There is, however, a place in our system of education for teaching the fundamentals of bookkeeping and with this there should be coupled practical exercises applying those principles to everyday affairs. May we not go further and say that some knowledge of accounts, and the application of accounts to the various practical interests which concern the future lives of the young people being educated, is a moral obligation to every child as a part of his equipment for life? No subject is more exacting in its demands for accuracy than is bookkeeping. A result must be either EDITOR'S INTRODUCTION xiii right or wrong, and its value depends upon its absolute correctness. ''Nearly right" or ''correct in principle," or any other subterfuge, fails to meet the bookkeeping standard. In his famous Letters to his son Lord Chesterfield wrote, "Keep an account, in a book, of all that you receive, and of all that you pay, for no man who knows what he receives and what he pays ever runs out." Mr. Bogle's book shows the simplicity with which the accounts of everyday life may be kept, and the application of the principles of accounts to various interests such as a child with an allowance, accounts of a literary or debating society, accounts of a baseball team, accounts of a house- wife, of a farmer, and of a physician. No better training could be imposed upon children than to require them to keep a simple record of income and outgo. Thereby they will learn to keep watch over expenditures and will be taught to look forward to a balance at the end of a period for which an allowance is made. Housewives can, by such a system of accounts as is shown on pages 110 and 111, balance the different items in their expenditures, keep an intelligent oversight over outgo, and often prevent dire distress in the home. Farmers can ill afford not to keep a simple account record, not only of the operations of the farm as a whole, but subdivided to show the results from given fields, the production of different crops, the maintenance of a dairy, the raising of animals, and the like. If such accounts were kept with the different branches of work on a farm, the farmer would shortly be able to single out the parts of his operation which net him the largest returns, and either to eliminate the loss from certain branches of his work or dis- continue them altogether. The teacher, the minister, the lawyer, the real estate and insurance agent, the gardener, the treasurer of any fund how- ever small, the mechanic, the laborer, the boarding-house XIV EDITOR'S INTRODUCTION keeper, the printer, and a multitude of other practical people who do business in a small way, should be schooled in the sort of record keeping which is presented in this book. To a surprising extent citizens of America will at some time be responsible for the receipt and disbursement of moneys not their own, and the ability to keep an intelligent record and to present an understandable statement should be an ele- ment in the education of every person. Obviously, the elaborate course of bookkeeping often given in the private commercial school, or the commercial course of the public high school, is not possible for the rank and file of pupils. Bookkeeping is often taught as though those who studied it were to be head bookkeepers. In the first place a vast majority of the pupils never reach these schools, and those who do so give themselves largely to other studies. After some years of observation on work in commercial schools, and practical experience in a home and in the rearing of a family of children, the writer is firm in the belief that all boys and girls should be taught the fundamentals of bookkeeping, and the application of arith- metic to the keeping of their everyday accounts. A writer on Child Training by Bookkeeping in ^' The Out- look " for August, 1906, holds that such training as is sug- gested above is more ethical than it is financial. It is urged that as soon as a child has a pocket, he should have a purse in it, and money in this purse. But this is not enough. There should be a system of record to keep track of this money with a frequent reviewing of the record by some older person. Mr. Bogle's book is prepared in the belief that it will serve a useful purpose in the education of boys and girls. C. A. H. March 1, 1917, EYERYDAY BOOKKEEPING EVERYDAY BOOKKEEPI^a INTRODUCTORY Introductory Statement. This book gives a simple method of keeping accounts. This method may be used by a boy or girl or by a person doing a small business. It, however, would not be suitable for a concern doing a large business. Neither would plans used in a large business be practicable for a person having but few business transactions a week. But the principles used in this book are those which underlie all bookkeeping. About Forms and Blank Books. It is hoped that many who use this text-book will be led to keep a record of their own money transactions. To do this a suitable book is needed. There are many standard bookkeeping forms which may be secured of almost any stationer. For much of the work illustrated in this text-book, especially for young people, a small book about 4|^ inches by 7 inches is quite satisfactory. (See pages 16 and 25.) If the plan illustrated on pages 5 and 27 is followed, a book about 6 in. by 9 in. with two money columns to a page will be better. If something more pretentious is desired, such as for the special w^ork which is treated in the latter part of the book, ask a sta- tioner for the special column journals, special column cash books, and trial balance books. Sometimes it is more satisfactory to rule a form that just B 1 2 EVERYDAY BOOKKEEPING suits one's needs. In this event, procure a Record Book of suitable size and rule it yourself. A satisfactory width for the cents column is 3^ to f of an inch and for the dollar column i to f of an inch. Note that a double ruled line occurs at the left of the dollar columns and a single line between the dollar and the cent columns. A rather stiff pointed pen will give most satisfactory results in ruling. Debits and Credits. Two of the common terms used in business are debit and credit. These are applied to persons and also to such items as cash, merchandise, notes, interest, salary, and expense. Account. An account is a systematic arrangement, under a single heading, of all the debit and credit items of a series of transactions with the same person, or pertaining to the same thing. In an account, the debits are placed at the left and the credits at the right. CHAPTER I THE CASH ACCOUNT Money includes the gold, silver, nickel, and copper coins: made by the government, also paper currency issued by the same authority. Money is used as a measure of value and as a medium of exchange. Values are reckoned and re- corded in money. Cash includes money, checks, money orders, sight drafts, or anything that can be converted into money on demand. The cash account is the record of cash transactions. It is a very important account to keep. An account is kept by a system of debits and credits. There are different ways of arranging accounts, but the illustration given on page 5 shows a simple method. To enable the pupil to decide the debits and the credits, rules will be given. Here is the one for cash : Rule for Debiting and Crediting Cash [ received. Debit ] Credit cash when it is given out. Balancing. The footing of the debit column gives the amount of cash received; and the footing of the credit column gives the amount paid out. The difference be- tween these footings is the balance or the amount on hand, and when placed in the column with the smaller amount will make the two columns balance. The word Balance or the 3 4 EVERYDAY BOOKKEEPING phrase Amount on hand may be written in the explanation column. Then the footings of each column should be written. An account may be balanced at such times as may be desired. Ruling. After the balance has been written, rule a single line exactly upon the blue line in the account book. This is the addition line. Below the footings, and also at the left, rule two lines very close together, with the upper one exactly on the blue line. It is usual to use red ink for these rulings and also for the balance, but the same colored ink may be used as for the other part of the account. Re-opening. To re-open the account the amount on hand is brought below the rulings and placed in the column oppo- site that in which it was first placed. This is done when the record is to be continued. A proper arrangement of the cash account is shown in the model on the opposite page. Exercises for Practice Directions. Write up the following exercises, observ- ing as a model the form given. Refer to the rule for debit- ing and crediting cash until it is thoroughly familiar. EXERCISE 1 A Boy's Cash Account January, 19 — . 1. Amount on hand, $2.50. 3. Paid for flash Hght, $1.50. 4. Paid car fare, 10c. 5. Received for running errand, 50c. 7. Received for carrying valise to station, 10c. 12. Paid for show, 20c. 15. Received for 2 days' work, $2.50. 18. Paid for shoes, $2.75. 21. Paid car fare, 10c. THE CASH ACCOUNT /ff^ '^^.--^:.<^^-^C^<>'p^:.^:^^^^/7^^ \iT. Ct. 3/ /2- /^^^a€^'i^z/-(^..'-ftH^ 44? -^^^:^-*^*C^-^z^^^g^^^/ / 3 2-0 <5'2-C XU C'^^^'yv<>-t^i^'r2^,^i7->ty'A^-iZ'^^ 'n^\^ ■^.y'fa^ ^y^e-^^-A-^d^ C^^'7--y2yO-z..iy'y7^y^ (T-^t^ --A.^-^^ 7 n ^c 'si' ^^■ fc SC So 7 ^ ^jj- J-y 33 S(, So- ^ 1^ ^S 7^ ^3S 3 yS Co OS So Remark. It is quite common, in balancing the cash account, to use the word Balance instead of the phrase Amount on hand. But the latter is more definite, and it is better for the beginner to use it. 6 EVERYDAY BOOKKEEPING January, 19 — 26. Received for selling papers, 50c." Paid for letter paper, 10c. -28. Received for doing chores, 75c. 29. Paid for book, 50c. 31. Balance and rule the account. (Balance, $1.60.) Fiebruafy, 19 — . 1. Transfer the balance below the rulings. 3. Paid for lunch, 15c. 7. Paid for gloves, 50c. 10. Received for 4 days' work, $5. 12. Paid for window glass broken, 50c. 16. Received for delivering message, 25c. 19. Paid for repairing shoes, 90c. . 21. Paid for pair skates, $1. 22. Paid for bicycle tire, $2.50. 23. Received for delivering groceries one half day, 75c. 24. Paid for tie, 25c. 25. Received for shoveling snow from sidewalk, 50c. 26. Paid for lunch, 15c. 26. Paid car fare, 10c. 28. Balance and rule the account. (Balance $2.05.) EXERCISE 2 A Young Lady's Cash Account February, 19 — . 1. Amount on hand, $7.50. 1. Received allowance, $5. 3. Paid for sheet music, 25c. 4. Paid for music lesson, $1. 10. Paid for fountain pen, $2.50. 10. Paid car fare, 5c. 11. Paid for ribbon, 15c. 11. Paid for music lesson, $1. 16. Received for errands for Mr. Browning, 75c. 18. Paid car fare, 10c. 18. Paid for music lesson, $1. 23. Received for doing errands for Mr. Coffey, 50c. 24. Paid music club dues for February, 20c. THE CASH ACCOUNT 7 February, 19 — . 25. Paid for music lesson, $1. 25. Paid for lunch, 15c. 28. Balance and rule the account. (Balance, $6.35.) March, 19 — . 1. Transfer the balance below the rulings. 1. Received allowance, $5. 4. Paid for music lesson, $1. 7. Received for doing secretarial work for Mrs. Wilson, 50c. 7. Paid for stamps and stationery, 50c. 8. Received for mending Aunt Orpha's dress, 50c. 11. Paid for music lesson, $1. 11. Paid car fare, 10c. 15. Paid for evening gloves, $1. 17. Received for helping Aunt Caroline clean windows, 50c. 18. Paid for music lesson, $1. 25. Paid for car fare, 10c. 25. Paid for music lesson, $1. 28. Paid for sash for my lace dress, $1.50. 28. Paid for book for Helen's present, $1.45. 29. Paid music club dues for March, 20c. 29. Received for doing secretarial work for Mrs. Wilson, $1.75. 31. Paid for tooth brush and powder, 50c. 31. Balance and rule the account. (Balance, $5.25.) EXERCISE 3 Another Cash Account for a Boy May, 19—. 1. Amount on hand, $1.30. 3. Received of Samuel Wilson for 3 days' hoeing, at 50c. 6. Paid for car fare, 10c. 8. Bought necktie, 20c. 13. Paid for club dues, 10c. 18. Received of John Bowser for cutting weeds, 1^ days at 50c. 20. Paid for amusements, 20c. 21. Paid for expenses at social, 25c. 24. Received of Wm. Cooper for helping to re-plant corn, 3 days at 50c. 27. Paid for a baseball, 25c. 31. Balance and rule the account. (Balance, $3.95.) 8 EVERYDAY BOOKKEEPING June, 19 — . 1. Transfer the balance below the rulings. 3. Paid for club dues, 10c. 6. Bought hat, 60c ; pair shoes, $2.; handkerchief, 15c. 10. Paid for car fare, 10c. 15. Received of Samuel Wilson for cultivating corn, 5 days at 50c. 17. Paid for baseball bat, 15c. 20. Bought pocket knife, 40c. 24. Paid for refreshments, 15c. 26. Received of Uncle John for helping to repair fence, 1| days at 50c. 30. Balance and rule the account. (Balance, $3.55.) EXERCISE 4 A School Girl's Cash Account September, 19 — . 9. Received of father, $5. 9. Bought algebra, 60c ; civil government, 75c ; Latin lessons, 65c; English composition, 55c. 12. Paid for car fare, 10c. 15. Paid for hair band," 10c. 16. Bought drawing material, 95c. 22. Paid for ice cream soda, 10c. 24. Paid for ribbon, 15c. 25. Bought bottle ink, 10c ; pens, 5c ; paper, 10c. 29. Paid for comb, 10c. 30. Balance and rule the account. (Balance, 70c.) October, 19—. Transfer the balance below the rulings. 1. Bought pencil tablet, 10c. 6. Paid for barrette, 10c. 10. Received of mother, $1. 10. Bought pair shoes, $1.40. 13. Paid for amusements, 10c. 15. Received of father, $1. 17. Paid car fare, 10c. 20. Paid for candy, 10c. 23. Bought bottle fixative, 20c. 25. Paid membership fee English Club, 25c. 27. Paid for pencils, 10c. 31. Balance and rule the account. (Balance, 25c.) THE CASH ACCOUNT 9 EXERCISE 6 A Farmer Boy's Cash Account January, 19 — . 1, Received from father, $3. 2. Bought account book, 15c. 2. Bought pair skates, $1.25. 20. Paid my share of expense at social, 20c. 25. Bought pair gloves, 75c. 30. Bought tie, 25c. February, 19 — . 5. Received for helping neighbor drive cattle to market, 50c. 10. Bought pair ear muffs, 20c. 12. Bought candy, 10c. 15. Bought ticket for entertainment, 25c. 25. Paid for sewing ball cover, 15c. March, 19 — . 1. Received from father, $1. 4. Bought pair overshoes, 75c. 8. Paid postage on letter, 2c. 25. Paid for mending bridle, 10c. 31. Balance the account. (Balance, 33c.) April, 19—. 1. Transfer the balance below the rulings. 10. Bought lead pencil, 5c. 15. Received from neighbor for hauling corn to market, 75c. May, 19—. 9. Bought 2 collars, 25c. 15. Bought base ball, 50c. 27. Received from father, 50c. 30. Bought pair suspenders, 40c. June, 19 — . 10. Bought straw hat, 25c. 15. Received from father, $1. 22. Bought pair socks, 20c. 30. Balance the account. (Balance, 93c.) 10 EVERYDAY BOOKKEEPING July, 19—. 1. Transfer the balance below the rulings. 15. Paid expense at ice cream social, 20c. 18. Sold 15 watermelons, $1.75. 25. Bought shirt, 75c. 28. Sold 20 watermelons, $2.50. August, 19 — . 4. Sold 20 watermelons, $2.25. 10. Bought pocket knife, 60c. 12. Sold 30 watermelons, $3.50. 20. Bought 2 handkerchiefs, 25c. 25. Received from Hiram Brandon for carrying water for threshers, 50c. September, 19 — . 8. Paid admission to county fair, 25c. 8. Paid for pop corn, 5c. 15. Paid my share on ball for school, 10c. 20. Bought 6 pen points, 5c. 27. Paid postage on letters, 6c. 30. Balance the account. (Balance, $9.12.) October, 19—. 1. Transfer the balance below the rulings. 10. Bought pair shoes, $2.25. 19. Bought cap, 75c. 25. Bought bottle ink, 10c. November, 19 — . 4. Bought fountain pen, $1. 12. Paid for repairs on shoes, 15c. 21. Bought collar button, 10c. 26. Bought skate strap, 10c. December, 19 — . 3. Bought iron for sled runner, 30c. 12. Paid expense at oyster supper, 20c. 18. Bought Christmas present for mother, 25c ; for father, 20c. 28. Paid admission at entertainment, 15c. 31. Balance the account. (Balance, $3.57.) THE CASH ACCOUNT 11 EXERCISE 6 A Girl's Cash Account January, 19 — . 1. Received monthly allowance from mother, 50c. 5. Bought account book, 20c. 9. Bought ribbon, 5c. 15. Bought letter paper, 10c. 26. Paid postage on letters, 4c. February, 19 — . 1, Received monthly allowance from mother, 50c. 8. Bought hair pins, 10c. 12. Bought comb, 20c. 21. Bought handkerchief, 15c. March, 19—. 1. Received monthly allowance from mother, 50c. 3. Bought candy, 5c. 10. Bought bracelet, 49c. 21. Bought pins, 3c. 31. Balance the account. (Balance, 9c.) April, 19—. 1. Transfer the balance below the rulings. 1. Received monthly allowance from mother, 50c. 8. Bought pair stockings, 20c. 15. Bought beads, 15c. 23. Bought spool silkateen, 5c. May, 19—. 1. Received monthly allowance from mother, 50c. 4. Bought thimble, 5c. 7. Bought paper needles, 10c. 15. Bought candy, 5c. 27. Paid postage on letters, 6c. June, 19 — . 1. Received monthly allowance from mother, 50c. 10. Bought ribbon, 20c. 16. Bought 6 pen points, 5c. 21. Bought two skeins floss, 5c. 12 EVERYDAY BOOKKEEPING June, 19 — . 25. Bought crochet hook, 5c. 30. Balance the account. (Balance, 58c.) July, 19—. 1. Transfer the balance below the rulings. 1. Received monthly allowance from mother, 50c. 3. Bought collar, 25c. 4. Bought ice cream, 10c. 20. Bought handkerchief, 20c. August, 19 — . 1. Received monthly allowance from mother, 50c. 10. Bought yard lawn for apron, 15c ; bolt fancy braid, 10c. 17. Bought vase for flowers, 10c. 22. Bought paper napkins, 5c ; paper cups, 5c ; paper plates, 5c. September, 19 — . 1. Received monthly allowance from mother, 50c. 10. Bought writing tablet, 5c ; box paints, 10c. 15. Bought book strap, 10c. 18. Bought candy, 10c. 23. Bought picture card for bedroom, 10c. 30. Balance the account. (Balance, 58c.) October, 19—. 1. Transfer balance below the rulings. 1. Received monthly allowance from mother, 50c. 4. Bought pin cushion, 10c. 10. Bought brush and comb tray, 25c. 16. Bought 4 skeins floss, 10c. November, 19 — . 1. Received monthly allowance from mother, 50c. 7. Bought I yard handkerchief linen, 20c. 15. Bought pencil eraser, 5c. 26. Bought tooth brush, 15c. December, 19 — . 1. Received monthly allowance from mother, 50c. 5. Bought to use in making Christmas presents, yard fancy ribbon, 10c ; bolt baby ribbon, 10c ; ball crochet cotton, 15c. THE CASH ACCOUNT 13 December, 19 — . 10. Received of Uncle Manson, $1. 15. Bought doll for sister for Christmas, 35c ; present for cousin Mattie, 25c ; Christmas cards, 10c. 31. Balance the account. (Balance, $1.18.) EXERCISE 7 A Carpenter's Cash Account April, 19—. 1. Amount on hand, $35.20. 4. Bought saw, $1.25 ; hammer, 75c. 9. Paid house rent for month ending May 8, $12.50. 12. Bought pair shoes for myself, $2.25. 16. Bought chisel, 60c. 18. Received of John Killion for roofing house, 6f days, $23.50. 24. Bought lumber for tool chest, $3.60 ; locks, hinges, handles, etc., $1.30. 25. Paid for insurance on household goods for 3 years, $2.35. 26. Bought hat for Willie, 60c. 30. Paid during month for meat and groceries, $16.40. May, 19—. 1. Received of A. S. Colvin for repairing his porch, 2 days, $7.50. 4. Bought plane stock and two bits, $2.75 ; brace, $1.75 ; 5 bits for brace, $1. 6. Received of W. S. Manley for putting curb on cistern, $2.50. 9. Paid house rent for month ending June 8, $12.50. 10. Bought 6 chairs at 75c each. 11. Received of R. W. Kelley for week's work on house at 227 Blair Avenue, $21. 14. Paid water rent for April, May, and June, $2. 18. Received of R. W. Kelley for 5 days' work on house at 227 Blair Avenue, $17.50. 20. Paid life insurance premium, $22.38. 23. Bought pair overalls, $1.25. 25. Received of R. W. Kelley for 4 days' work on house at 227 Blair Avenue and 2 days' work on barn at 930 Garfield Avenue, $21. 27. Received of M. A. King for interest for 6 months ending to-day on note dated May 27, 191- , $9.60. 31. Paid during month for meat and groceries, $18.95. 31. Balance the account. 14 EVERYDAY BOOKKEEPING EXERCISE 8 A Laborer's Cash Account June, 19 — . 1. Amoiuit on hand, $20.15. 4. Paid gas bill for May, $1.75. 6. Received of J. W. Coleman for 4 days' work with team excavating cellar at 1512 Euclid Avenue, $13. 9. Paid for shoeing horse, 40c. 10. Bought for horses and cow 3 bales hay, at 35c. 13. Received of J. W. Coleman for 4 days' work with team, grading lot at 720 N. 12th Street, and 2 days' excavating cellar at 940 Benson Avenue, $19.50. 15. Bought shingles for roofing porch, $5.25. 20. Received of W. L. Bailey for 6 days' work with team, hauling brick, $19.50. 23. Paid L. E. Riveley for roofing porch, $2.75. 25. Bought bridle, $1.40. 27. Received of W. L. Bailey for 2 days' work with team hauling brick, at $3.25 ; 4 days' work tending mason, at $1.50. 30. Sold during month to neighbors, garden vegetables, $2.10 ; milk, $1.45. 30. Paid during month for groceries, $8.30. July, 19—. 3. Received of L. L. Hart for hauling lumber, 6 days at $3.25. 4. Spent at picnic, 90c. 6. Paid gas bill for June, $1.50. 11. Received of L. L. Hart for hauling lumber, 6 days at $3.25. 14. Bought cement and sand for walk, $2.80. 15. Bought corn and chop, $3.60. 17. Received of Archey Colvin for one month's board, $15. 18. Received of L. L. Hart for hauling lumber, 2§ days at $3.25; of S. M. Harsley for grading lot, 3 days at $3.25. 20. Bought clothing material for wife and children, $10.30. 22. Received of L. C. Scott for hauling sand, 2 days at $3.25. 31. Sold to neighbors during month, garden vegetables, $6.20 ; milk, $1.95. 31. Paid during month for groceries, $12.15. 31. Balance the account. THE CASH ACCOUNT 15 ANOTHER PLAN FOR KEEPING AN ACCOUNT Instead of using one page in making a record of trans- actions, two pages may be used, putting the debits on the left-hand page and the credits on the right-hand page. In this method, when the account is balanced, the footings are placed on the same blue line on the opposite pages. This plan is illustrated on the next page, using the cash ac- count of page 5. It is recommended that the pupil write a few exercises after this model. If the column for explanations is narrow and there are several items in a transaction, the arrangement used in the account on page 27 is the more convenient. If the column is very narrow, the amount for each item may be put in the money column instead of putting the total for the group in this column. But if the column for the explanations is wide, the plan used for February 5 in the cash account on page 5 gives the more economical use of the space. Use of Capitals. In the illustrations in this book the names of articles are capitalized when they are listed in tabular form. But usage on this point is not uniform. [See page 27.] Fractions. A fraction of a cent should never appear in the money columns. If the fraction is one-half cent or more, call it one cent; if it is less than one-half cent, drop it. EXERCISE 9 A Cash Account for Basket Ball Team Suggestion. This and the following exercises on the cash account may be written as shown in the model on page 16. November, 19 — . 13. Receipts of game with Kansas City University, $10.35. 24. Receipts of game with Rosedale High School, $8.95. 24. Paid expenses of game with Rosedale High School, 80c. 16 EVERYDAY BOOKKEEPING CIoaA^ Cioc^pwrit {Left-Jiand Page) {Right-hand Page) Cash Debit Cash Credit /^/^ /^/^ M- / L 'la^y. 3 /o 7 / 2S (TTty-A-ei,^?-!^ %o ^A£ /^ s- /^Ci^-e^Wi^-^f^T-^-J^a^;^^ .^-irt^ ^ '2-0 -f^&-^yU-^'-€L4y-6'^?'t^i;c-t^<>-i-^ ^ 2-^ ■^^ /S So ^o JzLlc/o^ 7 o o 3/ C70 .rv ^3 S7 4€i.Z?-Z^-^ 7 ^a s- ~^^^<^-e-'0^^-£^-'/t^^ S Xo S" ~^^i^c^e^<^^^i^--^^o^L^^Ap-^^^ u/-A-£^e^^^^-(^^x/' z^ ro /o "^4>TJ<^^^?^4^/:>;^^Z-2>i^^i/%t^cy, 3/,/f/C J-a /^ rid^i^^^^-t?-^iy..^^y^r>t^i^^^ij^ 7 oo 3/ ^^^^^•^^^•^-'«7-2^<^-z^-<^->^^^-2^-^?4^ z^iy<:) A cfO ^7 4^^^~^Ay^cA£y:^^ @/;^^/ .^^ --^^-2Exi:^ji5^i^-^-^ -?C-<:' the rate of ^i^x:, per cent per annum. ^o-k'KQX>'yu and ^ciyyv^i^M. In the note above shown each member of the firm is individually responsible, but in case suit is brought they must be sued together. Joint Note / 86.26 vVo Kansas City, Kansas, cAo-v-e^yv{>-&v 6, 19 ..^ Due €rL Tfldv&k /, /'//S; after date, for value received, w-^ promise to pay. fa'yyL&^ ^akitt or order, at ^k& fi-ayyve^ oftat& Bcm^ €iaktu-Q.l/?o and — zcrrrrrrrcccccccccc^rrrrrrrrrrccc^ with interest from..-dat&---at the rate of^.^^l^o.^^per cent per annum. B. /C. €ia This note in effect is the same as a partnership note; that is, each person signing it is individually responsible for its payment, and in case suit is brought they must be sued together. 54 EVERYDAY BOOKKEEPING Joint and Several Note $200.00 J^o Philadelphia, Pa., fun& / , 19__. Due ^kv&& y&avQ, after date, for value received, W-&, ah <k&'b aj^ tc^, promise to pay CL. 7?t Bvaw-^v or order, at cf&e^ancl c4citCa'ytat fScu'n'h with interest froi7h_._cla.t& at the rate of... o.t'X, per cent per annum, pay able... a^er^ti-dTimccLlty Each person signing a joint and several note is individually responsible for its payment, and if suit is brought either may be sued separately, or they may be sued collectively. Indorsement of Notes. When a note is drawn payable to order, it must be indorsed by the payee, if it is trans- ferred to some other person. Indorsements are usually ' written across the left-hand end of the back of notes. There are different forms of indorsements, a few of which are illustrated on the next page. Instead of the word order, the word hearer may be used in a note. If it is so written, it may be transferred without indorsement; but it is better, even in this case, for the per- son receiving the note to require it to be indorsed as evi- dence that the payee has transferred it. It is safer, how- ever, to write notes payable to order, for if payable to bearer and lost or stolen any one can present them for payment. PROMISSORY NOTES 55 Illustration of Indorsements If the note is to be paid only to the person named in it, the words order and hearer should be omitted. What is said here about the indorsement of notes applies also to checks, drafts, or other commercial paper. Effect of Indorsement. An indorsement transfers the in- dorser's title to the note (or other negotiable paper) to the indorsee. It also acts as a guarantee by the indorser that he will make the note good, if the maker should fail to do so. Indorser and Indorsee. If the payee of a note transfers it to another by indorsement, he becomes an indorser, and the person to whom it is thus transferred becoip.es an indorsee. , Maturity of Notes. By the maturity of a note is meant the date when it is due. Sometimes this is specified in the body of the note by month and day; as, " On August 1, 19 — , I promise, etc.^' Sometimes it is made payable a certain number of days, months, or years after a specified time. If this period of time is given in days, the Qxact number must be counted to obtain the date of maturity. 56 EVERYDAY BOOKKEEPING If the time is given in months, a calendar month is meant ; that is, from a certain day of one month till the same day of the following month, provided this following month has the requisite number of days ; otherwise the time would end on the last day of the shorter month. To illustrate this last statement, suppose four notes are given respec- tively on January 28, 29, 30, and 31, each for one month. Each of these would be due February 28, except in a leap year. If the time is in years, the rule is similar to the rule for months. Exercise in Writing Notes 1. S. M. Davis gave note payable to J. C. Armsby, or order, for $612, at 90 days from date, at 6% interest from date. Date of note, March 12, 1914. 2. On July 20, 1914, W. M. Johns gave a note to R. M. Russell, or bearer, for $235.20, payable 2 years from date, with interest at 6% from date and payable semiannually. 3. Note dated September 1, 1914, payable March 1, 1915, interest 6% after maturity. Made bj^ J. M. Carr and A. B. Carney and payable to W. S. Cordin, or order. Write joint note. 4. Using data of preceding, write joint and several note. 5. Maker, A. M. Brown ; payee, S. M. Hale ; date, January 5, 1915 ; time, 3 years from date ; amount, $328.40 ; interest, 6% payable semi- annually. Write order note payable at Central National Bank and transfer it to A. H. White by special indorsement. 6. Write individual bearer note payable at Central National Bank, with interest from maturity, and transfer it by special indorsement. 7. Write partnership order note, with interest from date and payable annually, and transfer it by restrictive indorsement. 8. Write joint and several order note, with interest from date. 9. Write individual order note (payable at office of maker) with no mention of interest. Will a note so written draw interest ? 10. Write individual "order" note for $250, using current date ; time, 60 days from date; interest, 6% from date; payee, John McBride; maker, Caleb Moore. 11. Write ''order" note for $375 for 9 months at 6%, using current date, favor of D. S. Marshall, and made by Leroy Spencer. Transfer the note by special indorsement to S. M, Springer. PROMISSORY NOTES 57 12. Write joint note: amount, $460; current date; time, one year from date; interest, 6% payable semiannually; payee, J. R. Stone; makers, W. S. Bell and R. S. Kline. 13. Write " bearer" note, using current date; time, 120 days; payee, W. W. Brown ; amount, $290 ; rate of interest, 6 % from maturity, pay- able semiannually; maker, L. L. HoUis. 14. Write note favor J. S. Ramsey and Company, or order, for $420, at 6% interest from date; date, March 10, 19 — ; time, 10 months; maker, W. B. Marsh ; payable at Central National Bank. 15. Write individual order note, payable to some firm at their office, with interest from date at the lowest legal rate for your state. CHAPTER V ACCOUNTS WITH NOTES Kinds of Notes in Relation to Maker and Payee. In ac- counts with notes a twofold classification is made, based on the relation of the maker and the payee to the note. The maker of a note calls it a note payable, because he must pay it at some future time. The payee of a note calls it a note re- ceivahle, because he is to receive pay for it at some future time. If a note is transferred to another, whether by indorsement or otherwise, this person calls it a note receivable, because he is now the one who is to receive pay for it. Rule for Debiting and Crediting Notes Debit 1 ^received. \ a note when it isi Credit \ \ given wp. The Accounts. Since there are two kinds of notes the records of them are kept in separate accounts. The record for each note should contain all the important facts concern- ing it. Remark. Instead of using the terms notes receivable and notes payable for the titles of these accounts, the terms bills receivable and bills payable are frequently used. The reason for this is that time drafts usually are recorded in the same account with notes ; and the word bill applies to both a note and a draft. But drafts have not yet been considered. For this reason, and because it is more definite, the word note is used here. 58 ACCOUNT WITH NOTES 59 ILLUSTRATION OF ACCOUNTS WITH NOTES Notes Receivable 1917 Dr. Cr. March April 20 25 4 6 12 27 30 Loaned John Crawford cash on his note at 15 days, with interest at 6 % Received of H. S. Ball on account his note at 60 days, with interest at 6 % Received cash of John Crawford for his note of March 20, 1917, due to-day i Received of A. S. Ramsey, for horse sold him, note made in his favor by W. H. Lamb, dated Jan. 10, 1916, and due July 10, 1917 Loaned R. S. Stevens cash on his note at 15 days, with interest at 6 % Received cash of R. S. Stevens for his note of April 12, 1917 i Balance {Red ink) 200 175 150 180 00 00 00 00 200 180 325 00 00 00 705 00 705 00 May 1 Balance — H. S. Ball's note dated March 25, 1917, $ 175, and W. H. Lamb's note received April 6, 1917, $ 150 325 00 Notes Payable 1917 Dr. Cr. July 8 15 20 Gave C. M. Ball my note on account for 2 years at 6 (fo interest payable semiannually Gave R. W, Ardrey, for money borrowed, my note for 30 days at 6 fo interest Borrowed cash of W. C. Crowley on my note at 60 days 200 90 120 00 00 00 Aug. 14 Paid in cash note of July 15, 1917, favor R. W. Ardrey 1 90 00 1 Although this note draws interest, no record of it is made here. A record of interest is made in the interest account which is illustrated on page 74. 60 EVERYDAY BOOKKEEPING EXERCISE 1 Accounts with Notes Direction. For this exercise open two accounts, one with Notes Receivable and the other with Notes Payable. Be careful in classifying the notes that you make the record in the correct account. April, 19—. 10. Gave B. S. Small note at 10 days on account, $50. 15. Received note of W. H. Camp at 60 days for $200, at 6% interest, for cash lent him. 18. B. W. Smith gave me his note at 90 days to apply on account, $150. 20. Paid in cash note of the 10th, favor B. S. Small. 25. Borrowed of W. S. Pate on my note at 15 days, at 6% interest, $125. 28. R. M. Raines gave me his note at 6 months, with 6% interest, for hogs sold him, $60.40. 30. Loaned E. K. Daniels cash on his note at 20 days, at 6%, $125. May, 19—. 10. Paid W. S. Pate amount borrowed April 25. 12. Gave D. C. Ames note for $80 for 3 months, at 6%, on account. 20. Received cash of E. .K. Daniels for loan of April 30. 25. Transferred W. H. Camp's note of April 15 to E. C. Smith for cattle purchased of him. 27. Gave my note at 90 days on account to S. M. Hadden for $50. EXERCISE 2 Accounts with Notes Instruction. Open one account with Notes Receiv- able, and another with Notes Payable. September, 19 — . 3. Sold R. F. Graham on his note at 6 days, with interest at 6%, 3 M ft. hemlock boards at $12 per thousand ; 8 M. XX shingles at $4 per thousand. ACCOUNT WITH NOTES 61 September, 19 — . 4. Borrowed cash of J. T. McKitrick on note at 90 days, with interest at 6%, $450. 9. Received cash of R. F. Graham for his note of the 3d, $68. 11. Sold H. H. Martin on his note at 8 days, with interest at 6%, 20 M XX shingles at $4 per thousand ; 7 M laths at $3 per thousand ; 9 M ft. flooring at $25 per thousand. 12. Received of C. B. McMuUen note at 15 days, with interest at 6%, on account, $250. 19. Received cash of H. H. Martin for his note of the 11th. 20. Sold stock of lumber to H. H. Martin on his note at 60 days, with interest at 6%, for $1550. 26. Gave William Murchie on account, note at 60 days, with interest at 6%, $800. 27. Received cash of C. B. McMullen for note of the 12th due to-day. 30. Bought of J. W. McClenahan invoice of lumber and gave in pay- ment note of 20th, held against H. H. Martin, $1550. October, 19—. 3. Sold H. Finney on his note at 30 days, with interest at 6%, 16 M XX shingles at $4 per thousand ; 17 M ft. spruce lumber at $15 per thousand ; 3 M ft. flooring at $25 per thousand. 10. Gave William Murchie note at 5 days, with interest at 6%, to apply on account, $600. 13. Received cash of H. Finney in part payment of note of 3d, $375. 15. Paid in cash note of the 10th, favor of William Murchie. 19. Sold J. C. Long on his note at 11 days, with interest at 6%, 12 M laths at $3 per thousand ; 8 M ft. pine boards at $18 per thousand ; 9 M ft. spruce lumber at $15 per thousand. 12. Received of C. B. McMullen note at 30 days, with interest at 6%, to apply on account, $200. 25. Bought of David Wylie on note at 6 days, with interest at 6%, invoice of lumber, $490. 26. Received of S. G. Craig on account, note at 60 days, with interest at 6%, $225. 30. Received cash of J. C. Long for his note of the 19th, $315. 31. Paid David Wylie cash for note of the 25th. 31. Balance and rule both accounts. 62 EVERYDAY BOOKKEEPING m ao o o SO i i < c ^ ■ Drawer OB Last Indorsee o o a -«3 C - s • ^ H u 1 5 r 2: , ^1 i ACCOUNT WITH NOTES 63 THE BILL-BOOK Another method of keeping a record of notes, but without the debits and credits, is by using a bill-book. Such a book is specially ruled for the purpose. These books differ in minor particulars, but the forms on page 62 illustrate the principal features of all bill-books. The terms drawer and drawee used in these forms refer to drafts. They are given because bill-books are usually prepared for both notes and drafts. Exercise for the Bill-Books Record the notes of pages 60 and 61 in the bill-books. CHAPTER VI ORDERS AND CHECKS An order is a request of one person on a second to pay money or to deliver goods to a third person. Parties to an Order. There are three original parties to an order : the drawer, the drawee, and the payee. The drawer is the person drawing the order, that is, the person making the request; the drawee is the person upon whom it is drawn, that is, the person who is to pay it; the payee is the person in whose favor it is drawn, that is, the person to whom the money is to be paid, or to whom the goods are to be delivered. If the payee transfers an order to another by indorsement, he becomes an indorser, and the person to whom it is thus transferred is called an indorsee. In the first of the following orders W. C. Huston is the drawer, H. F. Needham is the drawee, and W. H. Kern is the payee. A Form of Order Payable in Money $25.00 Dayton, Ohio, (Z^^vU 16, 19 ^._ //. c^. cAo&dkamv will -please pay the hearer, m. /i^. ICe.V'yi and charge the same to my account. 64 ORDERS AND CHECKS 65 A Form op Order Payable in Goods $ /6.00 Pittsburg, Kansas, f^yie. 8, 19. -. o/. ?yi. ^'yyu^tt, ^/6 B'vo-a^dw-ciy ivill please deliver to ^ayyyvw&t 14}-kit^x>'Yyv{}^ goods to the amount of and charge the same to my account. Classes of Orders. Orders may be classed as general and specific. The general order (called simply an order) is used in any common business transaction in which a second person is requested to pay money or to deliver goods to a third. The specific orders are checks, drafts, letters of credit, postal and express money orders, etc. These take their names from the circumstances or relations in which they are used. Checks. A check is a written order of a person (depositor) on a bank requesting the payment of a specified sum of money to another person, or to his order. A Form of Check e/Yo. Kansas City, Kansas, tZufiia^t, /6, 19..^ Cbe Rome State Banh Fay to the order of. €. W-. Ram^e^if f /^6.26 h^vndv&d iavtu-a^ioo and —^ccciyy^'y:r:r:frrrr^::^rrcccc^Dollars. l'K& R. £. /i^a^tdt. 66 EVERYDAY BOOKKEEPING Exercise in Writing Checks Directions. Write the checks of this exercise, but pay no attention to the deposits. They are to be used in the next chapter. Where a name is omitted in the memoranda, th6 pupil may use his own name. Save the checks written in this exercise for use in the next chapter. If preferred, this exercise and Exercise 1 of Chapter VII may be written at the same time. January, 19 — . 10. Deposited currency in The Home State Bank, $50. 12. Drew check on The Home State Bank, favor A. S. Crawley, for $20. 13. Received check drawn by R. S. Ramsey, in my favor, on The First National Bank for $10. 15. Drew check on The Home State Bank, favor L. M. Hadden, for $10. 16. D. W. Dragoo gave me check on The Commercial National Bank, drawn in his favor by A. R. Brown, and transferred to me by special in- dorsement, $16.80. (Write the indorsement. See page 55.) 17. Deposited : notes, $15 ; coin, $8.40 ; checks of 13th and 16th. 18. Drew check on The Home State Bank for $21.75, favor J. H. Jones. 20. A. K. Henry gave me check drawn on The Stock Exchange Bank by himself in my favor for $23.60. 22. Received of R. E. Bailey a check on The Home State Bank, drawn in his favor by Z. M. Mitchell, and transferred to me by special indorse- ment, $12.85. 24. Deposited : notes, $21 ; coin, $12.50 ; checks on hand. 25. Drew check on The Home State Bank for $31.20, favor B. S. Long. 26. Received check drawn in my favor by J. W. Ball on The Com- mercial National Bank, $19.80. 27. Drew check on The Home State Bank, favor myself, $7.20. 29. S. K. Thompson gave me check on the Stock Exchange Bank, drawn in his favor by John Colton, and transferred to me by special in- dorsement, $22.90. 30. Deposited : notes, $17 ; coin, $9.25 ; all checks on hand. 31. Balance the account after writing it as Exercise 1 of Chapter VII.. CHAPTER VII ACCOUNT WITH A BANK The account with a bank is included among personal- accounts by the definition in Chapter II. The rule for debiting and crediting given there will apply to this account,, but one in a little different form is given here. This account may be kept in a check book. Rule for Debiting and Crediting a Bank Debit 1 f deposit is made. }the bank when a I Credit j [ check is drawn on it. Deposit Ticket. When a deposit is made in a bank the items of the deposit are filled out on a ticket prepared for that purpose. It is customary for the depositor to fill out the ticket and then to present it with the deposit at the Receiving Teller's window. EXERCISE 1 Account with The Home State Bank Directions. In this exercise the data of the exercise for writing checks (Chapter VI) may be used. In connection with each deposit fill out a deposit ticket. Indorse, by a blank indorsement, all checks deposited. Signing the name as it is on the face of a check is the usual indorsement when the check is deposited or cashed at a bank. If a check has been indorsed already one or more times, the name should be written below the other indorsements. It may be that a few deposit tickets can be secured at some local bank. If not, they can be prepared. 67 68 EVERYDAY BOOKKEEPING A Form of Deposit Ticket DEPOSITED WITH FOURTH NATIONAL BANK OF PHILADELPHIA To the Credit of 191 PLEASE LIST EACH CHECK SEPARATELY DOLLARS CTS. Notes Coin CHECKS AS FOLLOWS: (If in City name of Bank ; if out of City, name of place where payable.) lil Ul ^ g I o z 3 -1 o h Total. $ _ SEE THAT ALL CHECKS AND DRAFTS ARE INDORSED Note. The term " notes " as used in the above Deposit Ticket refers to paper money — sometimes called bills. " Coins " includes gold, silver, nickel, and copper coins issued by the government. On some Deposit Tickets the terms "currency," ''gold," and "silver" are used, in which use the nickel and copper coins are included with the silver. ACCOUNT WITH A BANK 69 Illustration of an Account with a Bank Cy. Cd-t<^. /o /z /3 Z3 3/ ^^ 23 ^.3 Co Cc /s zo f /z Ci oo 2^ Co EXERCISE 2 Account with The Commercial National Bank March, 19—. 2. Opened an account this day depositing notes, $50 ; coin, $25. 2. Drew check favor John Kelsey, $10. 5. Drew check favor H. H. Cogwell, $5. 7. Drew check favor L. H. Coons, $15. 10. Deposited as follows : notes, $20 ; coin, $12.30 ; checks signed as follows : J. R. Camp, $4 ; S. M. Baker, $9. 12. Drew check favor John Kelsey, $12. 16. Drew check favor C. C. Ball, $18. 20. Deposited notes, $9 ; coin, $27.60 ; check made by H. F. Adams, $6.20. 25. Drew check favor myself, $15.25. 30. Drew check favor R. S. Burgess, $15.40. 70 EVERYDAY BOOKKEEPING AprH, 19—. 1. Drew check favor A. G. Kelley, $40. 6. Deposited notes, $40 ; coin, $12.90 ; checks signed as follows : T. J. Axline, $8.50 ; R. S. Cupp, $12.30. 8. Drew check favor A. H. Brown, $30. 10. Drew check favor A. B. Craig, $14.20. 15. Drew check favor B. C. Dunning, $9.50. 18. Deposited currency, $30 ; gold, $20. 20. Drew check favor John Kelsey, $8. 21. Drew check favor A. B. Craig, $4.30. 23. Drew check favor H. H. Cogwell, $5. 24. Drew check favor C. C. Ball, $15. 25. Deposited checks signed as follows : R. L. Boyer, $8.60 ; H. C. Black, $9.20. 27. Drew check favor W. W. Brown, $10.40. 28. Drew check favor H. C. Campbell, $15.90. 30. Drew check favor L. M. Hopkms, $21.80. 30. Balance and rule the account. Accounts with a Savings Bank The illustration opposite shows a common form for savings accounts. The method of keeping the account will be clear, it is thought, from an examination of the illustration, except- ing the interest items on July 1 and January 1. In this illustration, the interest is computed at 3 % per annum and added each six months on the following basis : The smallest balance for each month draws interest for that month. But an amount deposited not later than the 5th of the month draws interest for that month, unless a withdrawal is made later in the month, reducing the balance to an amount smaller than it was on the 5th of the month. In the illustration the smallest amount for January is $50. In February the smallest balance is $90, as no new deposit was made till the 8th. For March $145 draws in- terest, as a deposit was made before the 5th and the with- drawal on the 25th did not reduce the balance below this ACCOUNT WITH A BANK 71 A Form of an Account with a Savings Bank 1916 Deposited Withdrawn Balances Jan. 2 50 00 50 00 13 40 00 90 00 Feb. 8 20 00 110 00 17 10 00 120 00 25 6 00 115 00 Mar. 4 30 00 145 00 15 20 00 165 00 25 10 00 155 00 May 9 15 00 140 00 20 25 00 165 00 27 5 00 170 00 June 12 20 00 190 00 27 50 00 140 00 July 1 1 80 Int. 141 80 10 30 00 171 80 Aug. 3 15 00 186 SO 15 10 00 176 80 Sept. 12 20 00 196 80 Nov. 15 25 GO 221 80 Dec. 15 20 00 251 80 22 15 00 236 80 19 17 Jan. 1 2 78 Int. 239 58 amount. The April balance is $155, as there was no de- posit or withdrawal during the month. The smallest bal- ance for May is $140. For June it is also $140. Adding these smallest monthly balances gives a total of $720. The interest on this amount at 3% for one month is $1.80. This is added to the preceding balance on July 1. Suggestion to the Student. Verify the interest for January 1. Exercise for Savings Bank Account Direction. Write up the following exercise, using the preceding form as a model : 72 EVERYDAY BOOKKEEPING 19—. 19—. Feb. 1. Deposited, $50.00 Jan. 1. Add interest at 3 %. 15. Deposited, 30.00 15. Deposited, $ 5.00 Mar. 3. Deposited, 40.00 Feb. 8. Deposited, 15.00 10. Withdrawn, 15.00 15. Deposited, 25.00 20. Deposited, 20.00 April 3. Deposited, 20.00 April 2. Deposited, 30.00 10. Withdrawn, 15.00 18. Withdrawn, 10.00 June 1. Deposited, 8.00 June 10. Deposited, 25.00 15. Deposited, 25.00 22. Deposited, 15.00 July 1. Add interest at 3%. July 1. Add interest at 3%. 1. Deposited, 15.00 3. Withdrawn, 10.00 15. Deposited, 12.00 15. Deposited, 15.00 Aug. 3. Deposited, 20.00 Aug. 8. Deposited, 20.00 17. Deposited, 18.00 25. Deposited, 10.00 Oct. 1. Deposited 25.00 Sept. 1. Deposited, 15.00 19. Withdrawn, 14.00 20. Withdrawn, 10.00 Nov. 1. Deposited, 15.00 28. Deposited, 20.00 10. Deposited, 10.00 Oct. 14. Deposited, 20.00 Dec. 8. Deposited, 17.00 Nov. 1. Deposited, 25.00 21. Withdrawn, 15.00 15. Deposited, 20.00 19—. Dec. 22. Withdrawn, 15.00 Jan. 1. Add interest at 3%. Suggestion. Inquire the rate of interest paid by your local Savings Bank and the rule used in obtaining the monthly balances, and the interest periods. Then write an exercise covering a period of a year or more, treating it in ac- cordance with local usage. Query. If a young man 18 years of age, instead of spend- ing five cents a day for cigars, would put $1.50 in a Savings Bank on the first day of each month, how much would it amount to by the time he is 30, if interest is added each six months at 3% per annum? CHAPTER VIII INCIDENTAL ACCOUNTS Accounts may be divided into four classes: 1. Personal 2. Property 3. Incidental 4. The loss and profit Personal accounts and property accounts have had some consideration already. The loss and profit account is used in a complete system of bookkeeping into which to collect the losses and the profits shown by other accounts. It will be fully explained at the proper place. All other accounts may be grouped as incidental. The accounts which are put in this class are so varied that it is difficult to select a satisfactory term by which to designate the class. Various terms have been used, among which are incidental, use and service, allowance, nominal, and imaginary. This group includes all accounts that show losses or profits, but which usually do not have anything in the way of prop- erty ^ connected with them. A few of these are expense, interest, discount, commission, rent, advertising, salary, and storage. Rule for Debiting and Crediting Debit I [ loss. [ the incidental item when it produces a \ Credit J [ profit. ^ Note the meaning of property as used here. See Chapter III. 73 74 EVERYDAY BOOKKEEPING Illustration of an Incidental Account . /9'^ \5v C.v. e^ 2-0 /^ 4/^ 3o o^^o^z^lb^^L^i^ c^yh^^:t^L^^^^ J"^ /^^ 3o ^S-«^TZ^^ /^^^ 2>-7-i.'e^ ly dT o o y^

x: Cv ^^^^^^ / 7^ '2-0 .--Ct-tZ'yLjy^U/-zrt^fky 3 c 00 /o / /■ — c 3X^ "oo /d z-^-^^^^^^^f^ X /f •JTo ^o /a^t^Lh-n-^yv^^ ' a^oi^O'U.^^^iy— 7 7-0 oo ■ Zs 2. /3 'oo DOUBLE ENTRY 95 ^<7/C ^ Cv^^t^e^<^ X5V. C.V. /o ^ Soo o o 326'ao 32^lPo JS- /C 7 X)v. Cr. ^ OO 7 S-o 7-0 OO 96 EVERYDAY BOOKKEEPING THE TRIAL BALANCE In a complete system of bookkeeping every time a person or an item is debited some other person or item is credited for the same amount. Hence, the sum of the debits always equals the sum of the credits. The trial balance is an exhibit of the debit and the credit footings of each account to determine whether the sums of these footings are equal. If they are equal, usually it is taken as evidence that no entries have been omitted. Trial balances may be taken at such times as may be desired. The following is a trial balance of the preceding accounts on April 30, 1916. The numbers 1, 2, 3, 5, 6, 7 in this trial balance indicate the pages of the account book on which the accounts occur. ^^\^ / 7 /3Sb %0 ^3/rZo o o oo 7 vJ4^3" 37^'o 3Z /3/r Zo oo Zo FINDING THE PRESENT WORTH In Chapter XI there was given a method of finding the present worth. But in double entry bookkeeping there is" another method. It consists in finding the net loss or the DOUBLE ENTRY 97 net profit and, if a loss, deducting it from the worth at beginning as shown by the proprietor's account or, if a profit, adding it to the worth at beginning. The net loss or net profit is found by collecting the losses and the profits from the accounts showing them into the loss and profit account, and finding the difference between the two sides of this ac- count. This difference is then transferred to the proprietor's account. Finally the difference between the two sides of the proprietor's account is found. This is the present worth. The set on pages 92-95 is reproduced on pages 98-99 with the addition of the necessary entries to make the proprietor's account show his present worth. A comparison of the two will show these additional entries. Notice particularly that these entries are placed in the opposite columns of the two accounts affected. This keeps the accounts as a whole always in balance. The items that would be brought below the rulings, if the record were continued, are shown in the following illustra- tion. The accounts with cash, with notes receivable, and with John Campbell have not been disturbed because they do not show losses or profits. In the proprietor's account on page 98 is shown a different arrangement for the opening entry. Compare this with the corresponding account on page 92. EXERCISE From the following data find the present worth (1) by getting the profit and adding it to the worth at first ; (2) by taking the difference between the assets and liabilities. Worth at a certain time, $1500. At the end of a certain period there had been paid for expenses, $42.30; received for interest, $36.90; re- ceived for pasture, $12.50 ; profit on hogs, $135.40 ; paid for taxes, $18.60. Assets: cash on hand, $32.50; due from Julian Morrow on account, $140 ; implements, $800 ; live-stock, $700 ; hay, $60 ; grain, $85. Liabihties : due R. M. Bradshaw on account, $193.60. H 98 EVERYDAY BOOKKEEPING J2£^^ly^7^7''Z'-€^L^6^ v. CiV. 971. CZyU 'f/C 30 3o :;^s<^,5.^^z.^^<^Az^^,^^x/^e^:z^/^ ~^yLod^£'^yi^''/r>u/'Z^^t^i^Ay M^ _^ yo ^ /S S-o £g£^ 20. ^^, 7O 7' C:::i^^z;z^^^.<£,<:f^ K>v. Cv /O Zo ■S^Sa 3JAS0 y JT^ /^'OO ^A^^-Q DOUBLE ENTRY 3 99 /f?/^ V5v Cv. c^^ 7 3o 3o / a>cu<^£y/r. s- 7 7 oo ^ro .S'.S'o 4^ /^ oo ■^ /^ ^ jTo '^/C ^ '^^7-d^ -L^ JQx. -M^ 3o 3o 3o /J\Sd 3^^o 3U^0 3j£S'o 100 EVERYDAY BOOKKEEPING DIRECTIONS FOR WRITING A COMPLETE EXERCISE The following will serve as a guide in performing the work of a complete exercise: 1. Make the record for the first period in the proper accounts. 2. Take trial balance. (In taking the trial balance, after the first time use the footings of each account up to the double rulings, but use nothing above these rulings.) 3. Cause the proprietor's account to show the present worth. To do this: (1) Enter, in red ink, anything on hand belonging to property accounts and any unsettled items belonging to incidental accounts. (For convenience both of these items will be called inventories.) [See Account ivith 20 Head of Hogs, page 36.] (2) Enter, in red ink, the loss or the profit in each account, and foot and rule the account. [See Interest, page 98.] (3) Transfer the loss or the profit from each account to the loss and profit account, entering each in black ink and putting the amount in the column opposite that in which the red ink amount was placed. [See Loss and Profit, page 99.] (4) Enter, in red ink, the net loss or net profit in the loss and profit account and foot and rule the account. [See Loss and Profit, page 99.] (5) Transfer the net loss or net profit to the proprietor's account, entering it in black ink and putting the amount in the column opposite to that in which the red ink amount was placed. [See account with Samuel Howell, page 98.] (6) Enter, in red ink, the present worth in the proprie- tor's account, and foot and rule the account. [See account with Samuel Howell, page 98.] DOUBLE ENTRY 101 4. Re-open the accounts if work is to be continued for another period : (1) Transfer the present worth in the proprietor's ac- count below the rulings, writing it in black ink and putting the amount in the opposite column. [See account with Samuel Howell, page 98.] (2) Transfer the inventories, if any, below the rulings, writing them in black ink and putting the amounts in the opposite columns. [See Interest, page 74, and Labor,. page 99.] 5. Make the record for another period and repeat the pre- ceding steps. SET I. — Transactions for a Farmer Directions. In the following exercise keep an account with each person and each item involved. For each account leave the number of lines here designated: pupil (use your own name as proprietor), 25; live-stock, 40; field and garden products, 35; teams and implements, 20; expenses, 40; farm and buildings, 12; cash, 70; Harvey Arnold, 15; loss and profit, 30. For practice, make the proprietor's account show the present worth on the last day of each quarter. As a guide in performing the work follow the directions on page 100. January, 19 — . 1. PupU (use your own name as proprietor) opened set of accounts, having the following assets : farm and buildings, $4000 ; cash, $85.75 ; live-stock, $420 ; field and garden products, $160 ; teams and imple- ments, $560. 10. Sold for cash 5 head cattle, total weight 4890 lb., at 5c. 15. Horses, Ned and Kit, shod by Harvey Arnold, $1.25. (Debit expense and credit Harvey Arnold.) 20. Bought for cash 8 head hogs for $40. 102 EVERYDAY BOOKKEEPING January, 19 — . 31. Sold during month butter and eggs for cash, $15.20. (Live-stock.) 31. Paid in cash grocery bill for month, $9.45. (Expense.) February, 19 — . 2. Paid cash for repairs on wagon, $2.75. 7. Paid house help in cash, $10. 15. Sold for cash 150 bu. wheat at 88c. 21. Had repairs made on buggy by Harvey Arnold, on account, $5.25. 28. Sold for cash during month, butter and eggs, $18.45. 28. Paid in cash during month for meat and groceries, $7.30. March, 19—. 9. Sold for cash 12 head hogs, 1790 lb., at 6|c. 15. Sold Harvey Arnold on account 1 hog, 120 lb., at 6c. 24. Paid cash for help on farm, $23. 31. Determine the present worth. (See step 3, page 100.) Values of items belonging to different accounts are as follows : farm and buildings, $4000 ; live-stock, $350 ; field and garden products, $80 ; teams and implements, $560. There has been no change in the value of farm and buildings or in teams and implements since January 1. Hence, it is not necessary to go through the process of balancing and re-opening these accoimts at this time. April, 19—. 4. Had repairs made on implements by Harvey Arnold on account, $16.50. (Before making a record of this transaction be sure that the in- structions of step 4, page 101, have been carried out.) 10. Bought for cash, gang plow, $55. 12. Bought for cash, milch cow, $50. 18. Sold for cash, 2 calves for $13. 26. Paid cash for farm help, $32. 30. Sold for cash during month, butter and eggs, $26.50. 30. Paid cash during month for flour and groceries, $15.90. May, 19—. 7. Paid Harvey Arnold cash on account, $10. 16. Paid cash for help in house, $9. 25. Paid cash for permanent improvements on dwelling, $175. (Farm and buildings.) 31. Sold for cash during month, butter, $21.40. DOUBLE ENTRY 103 June, 19 — . 12. Bought for cash 50 bu. corn at 50c. (Field and garden products.) 20. Paid cash for repairs on harness, $3.20. 22. ■ Paid cash for summer clothing for family, $22.85. 25. Paid cash for farm help, $45. 30. Sold for cash during month, garden produce, $21.90. 30. Paid cash during month for groceries, $5.80. 30. Determine the present worth. Values of items belonging to different accounts are as follows : farm and buildings, $4150 ; live-stock, $400 ; field and garden products, $75 ; teams and implements, $600. July, 19—. 1. Re-open the accounts. (See step 4, page 101.) 7. Sold for cash, 9 hogs, 1360 lb., at 6c. 10. Bought for cash, one horse, Dick, $90. 20. Paid cash for help in harvesting, $40. 26. Sold for cash, 2 steers, 2145 lb., at 7c. 31. Sold for cash during month, garden produce, $41.30. 31. Paid cash for help in house and garden, $12.50. August, . 19 — . 7. Sold for cash, 160 bu. potatoes at 45c. 10. Sold for cash, 5 tons hay at $6.50. 18. Had repairs made on single trees by Harvey Arnold on account, $1 .60. 25. Paid cash for help in threshing wheat, $21.50. 28. Paid cash for threshing 825 bu. wheat at 3c. 31. Sold for cash during month, garden produce, $60 ; butter and eggs, $22.45. September, 19 — . 5. Bought for cash set harness, $35. 12. Sold for cash 300 bu. wheat at 87c. 18. Bought for cash school books, $5.30. 19. Sold Harvey Arnold on account 1 ton hay, $9.50. 22. Sold for cash 30 chickens at 25c. 29. Sold for cash during month, butter and eggs, $29.70. 29. Determine the present worth. Values of items belonging to different accounts are as follows : farm and buildings, $4150 ; live-stock, $425 ; field and garden products, $640 ; teams and implements, $700. October, 19—. 1. Re-open the accounts. 3. Paid cash for farm help, $12. 104 EVERYDAY BOOKKEEPING October, 19—. 10. Sold for cash 9 hogs, 1080 lb., at 5^c. 13. Paid cash for insurance on house and barn for 5 years ending November 1, 19—, $15.30. 19. Sold for cash 250 bu. wheat at 83c. 22. Sold for cash 3 tons hay at $9.50. 25. Received cash for pasture, $18. 31. Sold for cash during month, butter and eggs, $25.10. November, 19 — . 6. Sold for cash 18 chickens at 25c. 10. Had tires re-set on wagon by Harvey Arnold on accoimt, $2.50. 21. Sold for cash 75 bu. corn at 52 c. 23. Sold for cash bay horse, Ned, $140. 26. Paid cash for farm help, $28. December, 19 — . 5. Received cash for boarding school teacher, two months, $30. (There being no regular account for an item of this kind, you may credit expenses.) 14. Paid taxes in cash, $23.68. 20. Paid Harvey Arnold cash on account, $5. 22. Bought for cash 30 head hogs, $85. 25. Paid cash for 240 bu. coal at 8c. 31. Determine the present worth. Values of items belonging to differ- ent accounts are as follows: farm and buildings, $4150 ; live-stock, $525 ; field and garden products, $650 j teams and implements, $600. Balance all accounts, but bring nothing below the rulings. This will leave the accounts with a finished appearance. SET II. — Transactions for a Young Man Suggestion. This set may be written as one exercise or it may be made into two separate exercises. This must be decided before beginning; then space for each account may be left accordingly. Space for Each Account. The number of lines for each account is here given : the first number after the title of the account designating the number of lines for Exercise 1,. DOUBLE ENTRY 105 if it is written alone; the second number, the number of Hues for Exercises 1 and 2, if written together ; and the third num- ber, the number of hues for Exercise 2, if it is written alone. Pupil: 12, 16, 12. Expense: 25, 45, 20. Commission: 12, 12, 0. Salary: 15, 15, 0. Board: 0, 15, 15. Interest: 5, 8, 5. Loss and Profit: 10, 15, 8. Cash: 50, 80, 40. Notes Receivable: 10, 12, 6. W. S. King: 5, 5, 0. J. W. Blair: 5, 5, 0. J. V. Gridley: 8, 8, 5. J. S. Ormsby: 5, 7, 6. M. C. Evans: 0, 5, 5. A. S. Duncan: 0, 5, 5. EXERCISE 1 May, 19—. 1. Pupil opened a set of accounts this day, having cash on hand, $135.60. J. S. Ormsby owed him on account, $35, and D. C. Colvin owed on a note at 60 days from April 20, 19 — , $95. There was due W. S. King on account, $23.60. 2. Paid in cash for board, $4 ; for advertising for situation, $1.25 ; for hat, $2.75. (Expense.) 5. Bought of J. W. Blair suit of clothes on account, $16. 8. Paid in cash laundry bill, 90c ; for books, $2.15 ; for ticket to Y. M. C. A. entertainment, 25c. 9. Paid in cash board, $4 ; subscription to " Golden Rule," $1. 10. Was employed by L. S. Wiseman, a sewing .machine agent, as collector at $12.50 per week and an allowance of 10% commission on all orders taken. (No entry is required for this. A memorandum, however, may be made in the cash account in the same form as an entry, but without extending any amount into the money column.) 15. Paid W. S. King cash for the amount due him on account. 16. Paid board in cash, $4. 16. Received cash for commission on orders taken, $8.40. 17. Received cash for week's salary, $12.50. 31. Paid board in cash, $8. 31. Received cash for two weeks' salary, $25 ; for commission on orders taken, $17.90. June, 19 — . 6. Paid board in cash, $4. 6. Paid J. W. Blair cash for amount due him on account. 7. Received cash for week's salary, $12.50. 106 EVERYDAY BOOKKEEPING June, 19 — . 7. Paid cash for stamps, 50c ; for stationery, 75c. 19. Received cash for note dated April 20, 19 — , and for interest at 6%. [See May 1.] 20. Paid two weeks' board in cash, $8. 21. Received cash for two weeks' salary, $25; for commission on orders taken, $26.45. 28. Received cash for week's salary, $12.50. 28. Paid in cash board, $4 ; pew rent, $5. July, 19—. 3. Lent J. M. Bailey cash on his note at 90 days, with interest at 6%, $125. 5. Paid board in cash, $4. 5. Received cash for week's salary, $12.50. 7. Lent J. V. Gridley cash on account, $60. 10. Bought for cash pair shoes, $3.50 ; 1 doz. handkerchiefs, 75c ; 2 collars, 25c. 18. Paid board in cash, $8. 18. Received cash for commission on orders, $17.25. 19. Received cash for two weeks' salary, $25. 25. Lent J. V. Gridley cash on account, $45. 26. Paid board in cash, $4. 26. Received cash for week's salary, $12.50. August, 19 — . 1. Paid cash for board, $4 ; for books, $3.60 ; for charity, $6.40. • 2. Lent M. R. Strong, cash on note at 20 days, with interest at 6 %, $130. 5. Received cash for commission on orders, $31.90. 10. Paid in cash excursion expenses to Niagara Falls, $15.20. 14. Received cash for commission on orders, $24.30. 16. Received cash for two weeks' salary, $25. 22. Received cash of M. R. Strong for note of 2d inst. and for interest. 24. Lent J. V. Gridley cash on account, $85. 29. Paid three weeks' board in cash, $12. 30. Received cash for two weeks' salary, $25 ; for commission on orders, $17.40. 31. Take a trial balance. Determine the present worth by following the directions of step 3, page 100. Then, if Exercise 2 is not to be made a continuation of Exercise 1, balance and rule all accounts not involved in the preceding. DOUBLE ENTRY 107 EXERCISE 2 Note. In this exercise open an account with Board and enter board items in it instead of in the Expense account. September, 19 — . 1. If this exercise is rjiade a continuation of Exercise 1, perform the work as directed in step 4, page 101. Then omit all that follows under this date, passing on to September 4. If, on the other hand, Exercise 2 is to be written by itself, open new accounts, giving to each the number of lines designated in the paragraph preceding Exercise 1. Then record the following : Cash on hand, $102.23 ; J. S. Ormsby owed on account, $35 ; J. V. Gridley owed on account, $190 ; J. M. Bailey owed on note dated July 3 last, $125. 4. Paid railroad fare and drayage in cash, $7.80. Entered school, paying cash for tuition, $12 ; for books, $8.40. 6. Bought for cash 2 sliirts, $2 ; 2 pair cuffs, 40c ; 3 pair socks, 50c. 11. Paid Mrs. Jane Willowby cash for week's board, $3.50. 18. Paid in cash initiation fee to Union Literary Society, 50c. 18. Paid week's board in cash, $3.50. 25. Paid cash for stamps, 40c ; stationery, 50c ; paid board in cash, $3.50. October, 19—. 1. Received cash of J. M. Bailey for note of July 3 and for interest. 2. Paid week's board in cash, $3.50. 8. Received cash of J. G. Ormsby on account, $20. 12. Lent M. C. Evans cash on account, $15. 16. Paid two weeks' board in cash, $7. 30. Paid two weeks' board in cash, $7. November, 19 — . 6. Paid four weeks' board in cash, $14. 10. Bought ticket for lecture course, paying cash, $1.25. 15. Paid laundry bill in cash, $1.40. 20. Paid in cash membership fee to Christian Association of school, $1. 28. Bought for cash overcoat, $13 ; pair suspenders, 60c ; pair gloves, $1.25. 30. Received cash of J. S. Ormsby for balance due on account. 108 EVERYDAY BOOKKEEPING December, 19 — . 3. Paid cash for tuition for second term, $11 ; for books, $5.10. 5. Received cash of J. V. Gridley on account, $25. 8. Lent A. S. Duncan cash on account, $8.50. 11. Paid board to date in cash, $7. 14. Received cash of M. G. Evans for amount lent him October 12. 18. Paid laundry bill in cash, 85c. 20. Bought for cash pair skates, $1.50 ; stamps, 30c. 24. Paid board until end of month in cash, $10.50. 30. Paid railroad fare and holiday expenses in cash, $9.35. 31. Take a trial balance. Determine the present worth (step 3, page 100). Then balance and rule the other accounts. Suggestion. It will be a good drill for the pupil to write up an independent set similar to the preceding, originating about thirty transactions. CHAPTER XIII SPECIAL COLUMN BOOKS Books with special columns are very convenient for many purposes. A special column form is one of the labor saving devices in bookkeeping, and a great variety of these forms are in use in commercial bookkeeping. On the following pages are given a few illustrations of books with special columns. HOUSEHOLD EXPENSES On pages 110 and 111 is given a suggested form for keeping an account of household expenses. The columns may be footed at such times as may be desired, as once a week, once a month, or once a quarter. With experience different plans for the details may be worked out. In the February portion a plan of grouping the items is illustrated. In this the numbers over the amounts are the days of the month. Exercise for Household Accounts Direction. Head the columns in your account book the same as in the illustration. Then in writing the exer- cise extend the amounts into the proper columns. In actual practice any classification of the items may be made to suit the convenience of the person keeping the account. October, 19—. 1, Bread, 10c ; sugar, $1 ; meat, 30c ; milk, 6c. 2. 5 tons coal at $3.75. 109 no EVERYDAY BOOKKEEPING HEAT and LIGHT / / /3 ^^^- ^\^ir-c-'^y.."yz^ cJz'f^L'CA^ >&-trT7-t^ ,2^.<7^-'2;jO^^^^-'2>7l^i'■■■C^-■iyt^^^ ':^£J:; o^; o^; o^; o^ ^-7 /- / S'A^UroeA.c^^ : W^} /A£/ oi^; O^ JO /r oo fS ^ ¥c 3S 3o SS\ 7 oo Sa ~Fj-o SPECIAL COLUMN BOOKS 111 BENEVOLENCE CLOTHING DOCTOR and M^ICINE AMUSEMENTS INSURANCE OTHER ITEMS 7^ 3S ■ (fj / SO J zs zs zs t Z j-o X J-0 ^ JO fij / so ^ ^ 7 00 / 00 7 J-o ./' 5ro ^ ao 7 So / SQ 112 EVERYDAY BOOKKEEPING October, 19—. 3, Sack flour, $1 ; meat, 40c. 3. Weekly allowance to children, 50c. 5. Bread, 10c ; meat, 20c ; milk, 6c. 7. Paper, ink, pens, 40c. 8. Milk, 12c ; potatoes, $1 ; crackers, 15c. 10. Electric light for month ending September 20, 75c. 10. Weekly allowance to children, 50c. 12. Butter, 30c ; pickles, 15c ; apples, 40c. 14. Gas bill for month ending September 25, 75c. 15. Suit of clothes for Herbert, $8.75. 16. Insurance on household goods, $3.75. 17. Chicken, 50c ; oatmeal, 10c ; vinegar, 25c ; bread, 10c. 17. Weekly allowance to children, 50c. 20. Ribbon for Louise, 20c. 21. Dozen eggs, 25c ; salt, 10c ; pepper, 10c ; bread, 5c ; milk, 6c. 23. Sausage, 15c ; bananas, 10c ; turnips, 20c. 24. Associated charities of city, $3. 24. Steak, 30c ; corn meal, 50c ; butter, 35c. 26. Weekly allowance to children, 50c. 27. 4 cans fruit, 40c ; sugar, $1. 28. Repairs on rocking chair, $1.25. 30. Pair shoes for Louise, $2.50. 31. Sausage, 20c ; celery, 10c ; bread, 10c. 31. Foot each column and rule as shown in the illustration. November In this month short extend ^ the outlays for bread, milk, meat, and groceries as illustrated in the journal for Feb- ruary. When the space left for any item is filled, extend the total to the proper column and start another record for that item after the last entry which you then have. November, 19 — . 2. Weekly allowance to children, 50c. 2. Medicine, 75c. ^ To " short extend " means to put several amounts in the item column and extend the sum to the money column. SPECIAL COLUMN BOOKS 113 November, 19 — . 4. Bread, 10c ; milk, 7c ; meat, 15c. 5. Apples, 75c ; potatoes, $1 ; butter, 30c. 6. Bread, 15c ; milk, 14c ; meat, 20c. 7. Weekly allowance to children, 50c, 9. Electric light for month ending October 20, 90c. 10. Milk, 7c ; bread, 10c ; sausage (meat), 15c. 12. Gas bill for month ending October 25, $1. 14. Sugar, 75c ; bananas, 15c ; milk, 14c ; bread, 10c. 14. Weekly allowance to children, 50c. 16. Prescription and medicine, $1.25. 17. Bread, 10c ; butter, 30c ; salt, 10c. 20. Gave Salvation Army, $1.50. 21. Expenses at entertainment, 50c. 21. Weekly allowance to children, 50c. 23. Cheese, 20c ; steak, 25c ; bread, 10c. 24. Bought dishes, $3.20. 25. 5 cans fruit, 45c ; milk, 7c ; bread, 10c. 27. Half dozen handkerchiefs, 50c. 28. Weekly allowance to children, 50c. 28. Chicken, 45c ; butter, 35c ; bread, 15c ; milk, 14c. 30. Sack flour, $1.30 ; oranges, 20c ; matches, 15c. 30. Foot the columns and rule. December Suggestion. Look over the memoranda for December and use your judgment as to what items to short extend. December, 19 — . 1. Bread, 10c ; milk, 8c ; sugar, $1. 3. Sausage, 15c ; potatoes, $1 ; bread, 5c. 4. Overcoat for Herbert, $7. 5. Weekly allowance to children, 50c. 5. Bread, 15c ; steak, 20c ; milk, 16c. 7. Pair skates for Herbert, $1. 8. Oranges, 15c ; crackers, 20c ; cream of wheat, 10c. 11. Electric light for month ending November 20, 90c. 11. Milk, 8c ; bread, 10c ; 2 cans corn, 15c. 12. Weekly allowance to children, 50c. 114 EVERYDAY BOOKKEEPING December, 19 — . 12. Chicken, 40c ; celery, 10c ; crackers, 15c ; bread, 10c. 14. Gas bill for month ending November 25, $1.25. 15. Water bill for November, 70c. 16. Barrel apples, $2.50. 17. Bread, 10c ; milk, 8c ; pork chops, 15c. 18. Ginger, 15c ; cinnamon, 10c ; cheese, 15c. 19. Allowance to children, $1. 19. Muff for Louise, $1.75. 19. Sack flour, $1.25 ; butter, 30c ; dozen eggs, 22c. 21. Toys for Christmas (amusements), $2.20 ; other Christmas presents (miscellaneous), $5.80. 22. Clothing, $7.90. 23. Butter, 30c ; gallon molasses, 40c ; gallon gasoline, 20c. 24. Sweet potatoes, 50c ; veal roast, 30c ; cranberries, 15c ; milk, 14c. 26. Weekly allowance to children, 50c. 26. For charity, $2. 28. 6 cans fruit, 55c ; cabbage, 10c ; cheese, 10c. 28. Renewed subscriptions to papers and magazines, $5.40. 29. Bread, 10c ; milk, 7c ; dozen eggs, 28c. 30. Bottle cough medicine, 50c. 31. Package grape nuts, 15c ; salt, 10c ; crackers, 15c ; sack flour, $1.30. 31. Foot the columns and rule. A Suggested Exercise Determine the cost per meal for each person in your home. To do this, keep an accurate record for a definite time, say one week. First, give attention to the cost of provision. If any part of this is produced by the family, keep an account of it at the market value. In the second place, keep an account in hours of the time spent in preparing the meals and in washing and putting away the dishes. If you have a servant in the home, note the average number of hours she works per day and determine her wage per hour. If you have no servant, count your own time at the customary wages paid in your locaUty. Third, estimate the cost of SPECIAL COLUMN BOOKS 115 fuel used. Also keep a record of the exact number of meals eaten. If any members of the family carry lunches, count each of these as a meal. Arrange these items as illustrated in the form below. In this illustration the cost per meal for each item is computed to the nearest tenth of a cent. The illustration is supposed to represent one week in which seventy meals were served. A boarding house keeper by making a record of this kind occasionally, and comparing the cost with the amount re- ceived, could determine the loss or the profit on meals served. Cost op Meals for One Week (70 Meals Served) Gross Cost Cost Per Meal Provision Preparation Fuel Total 4 2 25 75 40 061 039 006 106 7 40 Another Form of Book for Household Accounts On page 116 is given another form of book for household expenses. If desired, the exercise beginning on page 109 may be written again, using this form. If this is done, insert, at the proper places, the following items : October, 19—. 1. Cash on hand, $9.85. 1. Received from husband, $20. 15. Received from husband, $15. 24. Received from husband, $10. November, 19 — . 2. Received from husband, $10. 21. Received from husband, $10. 116 EVERYDAY BOOKKEEPING December, 19 — . 1. Received from husband, $15. 14. Received from husband, $10. 20. Received from husband, $20. 28. Received from husband, $10. A Form of Book for Household Expenses 1911 Jan. Feb. Cash on hand Bread, 0.15; meat, 0.2 milk, 0.10 Beceived from husband Bent for January Two tons coal @ 3.50 Dress goods for Madella Sugar, 1.20 ; sack flour, 1. Balance (Red ink) Balance, cash on hand CASH Rec'd Paid 12 87 10 00 FOR WHAT PAID Table Heat AND Light od 00 HOITSE- HOLD 60 60 Other Items 20 00 00 A Special Column Cash-Book On pages 118 and 119 is illustrated a form of special column cash-book suitable for a physician. The headings of the columns may be varied to suit the needs or the de- sires of the person keeping the account. And any number of special columns may be used. Exercise for Special Column Cash-Book A Physician's Cash Account Direction. Write up the following exercise after the manner illustrated in the cash-book on pages 118 and 119 : SPECIAL COLUMN BOOKS 117 April, 19—. 1. Opened cash-book this day, having on hand $50. 1. Paid rent of office for April, $30. 3. Received of W. S. Picken for treatments in office, $15. 3. Paid office girl for week, $8. 6. Received of L. M. Braley for visits to son with measles, $12. 7. Received of Walter Harris for setting and treating broken ankle, $18. (Surgery.) 10. Paid office girl for week, $8. 10. Paid telephone rent, $3. 13. Received of Wm. Lasher for treating his eyes, $9. (Office.) 15. Received of Dr. W. R. Rose for consultation fee in case of Mrs» J. C. Landry, $10. 17. Paid office girl for week, $8. 20. Received for office prescriptions, $6.50. 21. Collected for calls in the following cases : A. D. States, $20 ; 0. S. Carver, $30 ; B. C. Hastings, $25. 23. Paid for repairs on electrical machine, $3.50. 24. Paid office girl for week, $8. 26. Received of R. M. Evans for amputating thumb, $5. 27. Received for office prescriptions, $4.50. 28. Paid for magazines, $1.75. 30. Foot all columns, balance and rule as in the illustration. May, 19—. 1. Bring down the cash balance. 1. Paid rent of office for May, $30. 1. Paid office girl for week, $8. 3. Received of John Kelly for office treatments and prescriptions, $8. 6. Received of Samuel Bailey for attending daughter Jennie with typhoid fever, $40. 8. Paid office girl for week, $8. 10. Paid telephone rent, $3. 12. Withdrew cash for personal and family use, $50. 15. Paid office girl for week, $8. 17. Bought rocking chair for office, $4.50. 19. Received fee for removing splinter from John Wilson's hand and treating wound, $3. (Surgery.) 20. Paid for letter heads, $1.50. 22. Paid office girl for week, $8. 118 EVERYDAY BOOKKEEPING A FORM OF SPECIAL COLUMN Cash Received 1917 Office Practice Home Calls SUKGERY Other Items Jan. 1 2 3 8 10 12 23 Opened cash-book this day with cash on hand John Gibson for examination and treatments J. S. Wilson for calls on daughter with typhoid fever Setting broken arm for Sam- uel Bovard Consultation fee from Dr. J. K. Raney in case of Wm. McLeod Treating Mrs. A. R. Siberts for dropsy Collected for office treat- 10 15 00 00 30 00 10 ' 1 00 1 1 1 25 10 50 00 26 ments and prescriptions S. A. Ballard for treating son Karl for measles Office practice Home calls 8 50 18 50 33 60 48 50 10 00 35 33 48 50 50 50 Surgery 10 00 127 50 Feb. 1 Balance on hand 64 35 May, 19—. 25. Bought mirror for office, $4. 26. Made collections in case of home calls as follows : Uriah Camp- bell, $15 ; Mrs. A. R. Brown, $20 ; L. K. Bixby, $28 ; R. C. Strong, $17. 29. Received for prescriptions and treatments in office, $13.50. 31. Foot, balance and rule as on April 30. June, 19 — . 1. Bring down the cash balance. 1. Paid rent of office for June, $30. SPECIAL COLUMN BOOKS CASH-BOOK FOR A PHYSICIAN Cash Paid Out 119 191T Office Help Tele- PHONE Office Rent Other Items Jan. 1 6 9 13 15 19 20 25 27 29 31 Rent of office for January- Office girl Stationery and stamps Office girl Telephone rent Repairs on rocker Office girl Letter heads Office girl Long distance call Office help Telephone Office rent Balance {Red ink) 7 7 7 7 00 00 00 00 3 00 40 25 00 2 2 1 25 76 75 28 00 3 40 26 00 6 28 3 25 64 75 00 40 00 35 127 60 June, 19—. 2. Paid light bill for three months, $6.40. 4. Received fee for helping to amputate C. M. MitcheU's foot, $10. 5. Paid office girl for week, $8. 8. Received for treatments and prescriptions in office, $8.25. 10. Paid telephone rent, $3. 11. Bought drugs, $15. 12. Paid office girl for week, $8. 14. Bought magazines for office, $2.25. 120 EVERYDAY BOOKKEEPING A FORM OF SPECIAL COLUMN CASH-BOOK Beceived 1917 Poultry Garden Dairy Other [tkms and Totals July 1 Opened cash-hook this day hav- ing on hand 18 60 2 15 chickens @ 30^ each 4 50 4- 50 7 22 lb. butter @ 25 f 5 50 5 50 15 5 doz. eggs @ 18f 90 90 18 From husband 15 00 20 2 bu. potatoes @ 1.20 3 doz. beets @ 15 j^ per doz. 2 40 45 (9 85 Balance, cash on hand 5 40 2 85 5 50 47 35 Aug. 1 10 55 i ; June, 19 — . 18. Made collections on home calls as follows : R. S. Spencer, $40 ; B. C. Downs, $32 ; L. S. Bruce, $27 ; Mrs. R. C. Cover, $18. 19. Paid office girl for week, $8. 21. Paid for repairs on automobile, $3.75. 21. Bought gasoline, 7oc. 25. Received for office practice and prescriptions, $9.25. 26. Paid office girl for week, $8. 28. Withdrew for personal and family use, $50. 30. Foot, balance and rule. On the top of this page and on page 121 is another suggestion of the use that may be made of special columns in the cash-book. A similar form may be used by the farmer himself by giving appropriate headings to the special columns. For the received (or debit) side, the special items might be cattle, hogs, farm produce ; and for the paid (or credit) side, implements, repairs, labor. There should always be a column for items which will not come under any of the special classes. SPECIAL COLUMN BOOKS 121 SUITABLE FOR A FARMER'S WIFE P <' ;i:il! !;S.I k