L/C-NRLF HpW mmmm S7S 1 1 First Steps ...in iHi Bookkeeping BOOKMAN & BLUE PAGES Instruction Book 1-44 Bills and Accounts 45-51 Cash Book 52-63 Purchase Book 64 vSalc- Rook ' 65-67 Joii' nal 68 Trial Balance 69-71 Profit and Loss 72-76 Ledger 77-85 FIRST STEPS IN BOOKKEEPING A PRACTICAL INTRODUCTION TO BOOKKEEPING CONTAINING AN ABUNDANCE OF DRILL WORK IN ARITHMETIC ARRANGED TO ACCOMPANY BOOKMAN'S BUSINESS ARITHMETIC OR ANY OTHER MODERN ARITHMETIC IN EIGHTH OR NINTH GRADE WORK C. M. BOOKMAN Business Manager, Council of Social Agencies CINCINNATI, OHIO FRANZ S. BLUE Head Instructor in Accounting, High School of Commerce COLUMBUS, OHIO COPYRIGHT, 1917, BY C. M. BOOKMAN CINCINNATI, OHIO INDEX PAGES 28 4 Accounts Bills and Accounts Cash Defined 22 Cash Receipts Defined 22 Cash Payments Defined 22 Cash Balance Defined 22 Cash Book Defined 22 Cash Book Illustrated -. 22-23 Cash Book Problems 24-25 Double-Entry Bookkeeping 40 Inventory Defined 35 Journal Defined 41 Journal Illustrated 42 Journalizing Defined 40 Journalizing Rules 40 Ledger Defined 26 Ledger Illustrated 26-27 Ledger Closing 42 Ledger Ruling Illustrated 42-43 Liability Defined 35 Net Worth Defined 35 Percentages Illustrated 30 Posting Defined 26 Posting Process Descril)ed 26 Profit and Loss Statement 30 Purchase Book Defined 35-36 Purchase Book Illustrated 36 Resource Defined 35 Sales Book Defined .' 35-36 Sales Book Illustrated 36 Trial Balance 29 TO THE PUPIL This course was not prepared for the purpose of making of you a finished Bookkeeper. It is intended, primarily, to give you as much bookkeeping as a general education should provide, and at the same time offer excellent drill in the practical applications of Arithmetic. You should assist your mother in keeping accurate accounts of household expenditures, and your father in recording the transactions in his business, no matter what its size. No business is too small to risk keeping its accounts in any but the correct way. Many failures in business, many worries in the home could be avoided if each business and each family understood the prin- ciples of bookkeeping, and arranged in advance a budget of expenditures. One dollar earned and ninety-nine cents spent means a saving of one cent and happiness ; ninety-nine cents earned and one dollar spent means a deficit of one cent and misery. Begin at once to live within your income, whatever it may be. As your income increases, your budget of expenditures can safely increase with it. Above all things, make certain that when you balance your personal accounts at any given period. Profit, and not Loss, will show in your Ledger. T-H-R-I-F-T is one way of spelling Happiness. Ask your teacher to help you prepare a budget of expenditures for a family the size of yours with the income your family has. A budget set of books for a family with an income of $780.00 a year has been prepared on page 44 of this book. As you start your bookkeeping work, bear in mind three things : 1. Make no entry until you understand where it should be made. 2. Be sure your calculations are right before you enter the results ; the hnal draft of your work should be in ink. and must not show erasures. 3. Don't leave a word, a sentence or a paragraph until you are sure you understand all it means. ' A mistake of 1 cent indicates a poor bookkeeper just the same as a mis- take of a thousand dollars would. You must be accurate. 3G0396 BILLS AND ACCOUNTS. A statement of the quantity purchased and the price per unit is always made out with every purchase. Mistakes are usually located in this way. At the same time a copy of this statement is retained by the salesman from which to make the entry in the permanent account books. If the sale is a cash one the transaction is closed ; if the goods are bought on credit, on the first of the month an additional statement is sent to the purchaser. The pages of problems which follow contain, primarily, drill work on the making of Bills and Statements, the extension of each item, and, finally, the grand total. One problem in each lesson must be set up in ink on the special bill forms provided in this book. The name of the company doing the selling is the Capitol City Retail Co., located at 3 West 7th St., Columbus. Ohio. If a purchaser is not named in the problem, the student is to be considered the purchaser. In addition to the drill work on Bills and Statements, from time to time problems affording review work on different subjects in Business Arithmetic are provided. Note 1. Make your extensions mentally whenever possible. 2. Fractions of a cent when less than a half cent are ignored ; when greater than a half cent they are counted as one cent. In first item of Problem 1, 6 times 9.2c is 55.2c; the .2c is dropped. In item three. 3 times 7.5c is 22.5c ; the amount carried forward is 23c. EXERCISES. 1. August 10, 1916. Tlie Capitol City Retail Co., 3 West Seventh St., Columbus. Ohio. Sold to FR.\NK jr)NES 12 West Ninth Street July 19 July 21 6 lbs. cut loaf sugar 9.2c 55 7 lbs. powdered sugar 8c 56 3 lbs. rice 7.5c 11 5 lbs. prime lard 14c 70 XYi lbs. ham 22c II lib. Creamery butter 3,V- II The Capitol City Retail Co., 3 West Seventh St., Columbus, Ohio. Sold to FRA\K JONES 11 West Ninth Street August 11, 1916. I XYt. lbs. New York cheese 18c 2 lbs. Creamery spec, oleomargarine. ... 18j/4c 2^. doz. Prime firsts eggs 24c 1 lb. Java coffee 27c 1/ lb. Breakfast bacon 23c XYz lb. dried beef 30^c 2 bu. peaches $3.50 3. The Capitol City Retail Co., 3 West Seventh St., Columbus, Ohio. August 12, 1916. Sold to FRANK JONES 11 West Ninth Street 2 cantaloupes 1 for 25: V2 bu. tomatoes $1-50 per bu. 3 lbs. granulated sugar 7;^c 1 box laundry soap $2.50 3 boxes matches 5c Make out and extend bills for the following purchases: Mrs. James Bryan, 16 Locust street, telephoned the following order to the Capitol City Retail Company: . 1- Three cans of beans, 15c per can; 2 bunches of celery, 2 bunches for loc; 1 head cabbage, 7c; Yz peck potatoes, $1.75 per bu. ; 3 lemons, 2 for 5c; 2 lb. rib roast, 27c per lb. ; 1 dozen bananas, 18c ; 1 loaf bread, 10c. 5. Mrs. Bryan purchased from the Capitol City Retail Coiupany the fol- lowing : (to nn 1 pair children's shoes $2.00 5^ yds cotton goods, 7^c per yd 3 children's dresses at 75c each 3 pairs stockings, 50c each 1 umbrella l-^^ 3>4 yds silk goods at $1.75 per yd A. J. Walters ordered the following bill of goods from the Capitol City- Retail Company : 1 lawn mower. $7.00; 45 ft. rubber hose at 15c per foot; 1 garden rake, $1.00; a brace and 7 auger bits; the brace was quoted at $1.25 and the bits at 25c each. 7. August 15, 1916. Jones & Barnes Co., Birmingham, Ala. Bought of The Capitol City Retail Co. 3 W. Seventh St.. Columbus, O. Yz gr. Kum Bak games at $48 per gross' 2 doz. Marathon Racers at $12 a dozen 3/2 doz. 3 Way Cars at $18 per dozen 3/2 gro. Hi-Lo Games at $24 per gross 8. The Capitol City Retail Co. sold the following bill of hardware : 17 gross No. 8 screws at 87c per gross 1 2-3 doz. locks at $12.60 per dozen y^ dozen 2^-inch bolts at $1.25 per dozen 2 1-12 doz. bolts at $3.60 per d6zen 9. 503 yds muslin at ll^k; 162 yds cotton goods at 634c; 7S yds madras at 19c; 57 yds denim, at 16c; 37 yds silk at $1.02. 10. 72 lbs. of butter at 323;4c ; 1280 bu. of rye at $1.03i/> ; 240 bu. clover seed at $10.45. 17. A grain broker sold the following goods. Make out the bill and extend the footings : 24.500 bu. No. 2 red wheat at $1.38: 15,375 bu. No. 3 white corn at 85c; 2,650 bu. No. 2 yellow corn at 86^c ; 2,135 bu. No. 2 mixed corn at 853^c. 18. A hay dealer's transactions for one day were as follows: 27 tons No. 1 timothy at S15 ; 85 tons No. 2 timothy at $13 ; 125 tons No. 3 timothy at $11 ; 128 tons No. 1 clover, mixed, at $1334 ; 325 tons No. 2 clover, mixed at $11.50; 280 tons No. 1 clover at $11 ; 390 tons No. 2 clover at $9; 16 tons oats straw at $7.50; 15 tons wheat straw at $7; 13 tons rye straws at $8^^. Arrange the above in proper form and extend the total. 19. Extend and foot the following purchase : 13 bbls., 50 lbs. to the bbl., of winter patent flour at $6.75 per hundred pounds; 92 bbls., 40 lbs. to the barrel, of low-grade flour at $4.25 per C; 210 bbls. of rye flour, 38 lbs. to the bbl., at $5.35 per C. 20. Extend and foot the following bill for mill feed which is sold in 100-lb. sacks. 325 sacks bran at $20^; 210 sacks middlings (coarse) at $25.50; 296 sacks of mixed feed at $22.50; 195 sacks of middlings (fine) at $27.50. The sacks to cost 2c each. 21, A grocer bought his supply of butter as follows : 24 lbs. creamery (whole milk) at 32j/4c; 36 lbs. dairy fancy at 23c; 55 lbs. packing stock No. 1 at 21>4c; 13 lbs. of packing stock No. 2 at 20c. Find the total after arranging in bill form. 22. The quotations on cheese for August, 1916, were as follows : Ohio 17c; New York 18c; Northwestern 17c; Swiss loaf 37i/^c; brick 17c; limburger 17i^c. A grocer bought 15 lbs. of each; make out his bill in proper form. 23. The feather market shows the following quotations: Pure white goose (dry) 67c; good average white 56c; largely gray at 47c; largely gray scalded 37i^c; pure white duck 46>4c ; stained and scalded at 35>4c; d'ark 35c; chicken body, all white (dry picked) 20c; chicken body all dark (dry picked) 3c; tails (no skirts) 40c; wings (no shorts) 20c. Make out a bill for 150 lbs. of each grade. 24. Fred Haller. a dealer in hides, received the following shipments: On Aug. 1. 200 lbs. No. 1 green salted at 17j4c; 250 lbs. No. 2 at 16i/^c; on Aug^ 20, 150 lbs. butcher green salted city at 173/2c; 50 lbs. country at 14^c; 7S lbs. calfskin at 24>4c. Make out such statement of account as he would receive on Sept. 1st. 25. The oil market quotes the following: Ohio carbon 120 degrees flash test at 8c; Ohio carbon 150 degrees at 8>4c ; headlight 175 degrees at 9^c ; Red crown gasoline at 23c ; naptha at 27c; lard oil No. 1 at 87c; cottonseed oil, refined, at 81c. Render a statement Aug. 1 for 1,250 gals, of each, bought on July 15. 26. Find the cost after first making out the proper bill of the following painter's supplies : 20 bbls. linseed oil, 50 gal. to the bbl. (raw) 74c; 16 bbls. turpentine at 50c per gal; 3 500-lb. kegs of pure white lead at IOV2C per lb.; 2 300-lb. kegs at 12>^c. 27. A cattle dealer on August 10 bought the following: 175 head medium heavy steers, averaging 1000 lbs. at %7 jt> per C; 22'b butcher steers averaging 800 lbs. at $6.67 per C. ; 75 heifers averaging 300 lbs. at $5.90 per C. ; 80 milch cows at $35 each ; 45 cows averaging 600 lbs. at $4.95 per C. Make out the statement rendered on Sept. 1. The quotations on hogs are as follows: Good to choice heavies (300 lbs. or over). $10.17 per C. ; mixed medium and lights (120 lbs. to 300 lbs.), $10.12 per C. ; common to good pigs (50 lbs. to 120 lbs.), $8.10 per C. ; common to choice heavy sows, $7.60 per C. ; stags, $6.75 per C. Make out statements or bills for the following purchases, using the above quotations, dating them the first of the month following date of purchase. 28. Feb. 2, 250 good to choice heavies averaging 320 lbs. Feb. 5, 325 lights averaging 137 lbs. Feb. 10, 75 good pigs averaging 78 lbs. Feb. 21, 128 choice heavy sows averaging 350 lbs. Feb. 28, 15 stags averaging 275 lbs. 29. March 29, 75 lights averaging 140 lbs.; 274 good pigs averaging 110 lbs.; 118 choice heavy sows averaging 300 lbs. 30. Dec. 3, 17S choice heavies averaging 310 lbs., 225 good pigs averaging Dec. 12, 55 choice heavy sows averaging 250 lbs.. 416 lights averaging 137 lbs. Use the following coffee quotations : Rio Santos Prime It^ ^JVj Good 43/8 f/4 Fair 14^4 157/8 Low Fair 137^ J5% Good Ordinary 3.>4 14^'^ Ordinary 3/. \\H Low Ordinary l^-'s 13% Fancy Guatemala \hA Good Guatemala \^/^ Mocha 29 30 Java -^ ^^ 31. Oct. 21, 300 lbs. Prime Rio Oct. 23, 275 lbs. Good Santos Oct. 25, 1248 lbs. Fair Rio Oct. 28 1562 lbs. Fair Santos 32. Feb. 17, 175 lbs. Good Rio 1372 lbs. Low Fair Rio 1582 lbs. Good Ordinary Santos Feb 23, 1672 lbs. Ordinary Rice 682 lbs. Low Ordinary Santos 2362 lbs. Fancy Guatemala 33. July 23. 382 lbs. good Guatemala July 26, 1292 lbs. Fair Rio July 27, 1376 lbs. Prime Santos July 27, 2619 lbs. Mocha Rio 34. May 1, 1762 lbs. Java Rio May 4, 3219 lbs. Java Santos May 24, 1620 lbs. Mocha Santos May 25, 692 lbs. Good Guatemala 35. Jan 5, 672 lbs. Prime Santos Tan 7 792 lbs. Low Fair Rio Jan 7, 86 lbs. Ordinary Santos Jan 10, 1218 lbs. Mocha Rio Jan." 10. 2319 lbs. Java Santos 36. July 10, 1000 lbs. of each grade of Rio 9 37. Nov. 3, 2500 lbs. of each grade of Santos 38. Nov. 8, 100 lbs. of Prime Rio. increasing the amount for each succeeding grade by 100 lbs. ; E. G.. 200 lbs. Good Rio. 300 lbs. Fair Rio, etc. 39. March 1, 150 lbs. of the Prime Santos increasing the amount for each suc- ceeding grade by 100 lbs. 40. Purchase 250 lbs. of each grade not costing over 14c. 41. The Central School Base Ball Team bought the following articles from the F. and R. Lazarus Company : 2 baseballs f^ $1.10 6 bats rd $0.35 1 catcher's mitt ^i $2.25 3 fielder's gloves (a $0.65 1 catcher's mask @ $2.50 Make out the sales slip as the Sporting Goods Company would have made it out. Solution THE F. & R. LAZARUS & CO. Founded 1851 For Charge, C. O. D., Approval and Transfer Name CENTRAL SCHOOL BASEBALL TEAM Address Central School Dept. 46 Sold By Purchased By F. A. GOOD. Manager Dept. 33 Sold By Kind of Sale Charge 2 Baseballs .... $2 20 6 Bats 2 10 1 Mitt 2 25 3 Gloves . 1 9S 1 Mask 2 50 $11 00 Identic ed Private Packa ges Er closed THIS SUP MUST BE RETURNED IN ORDER TO EXCHANGE MERCHANDISE. Kindly report any error or (liscourtesy at once to superintendent. 42. B. Lewis bought of the Middle West Produce Co.: 4 bu. apples @ $1.52 3 crates of cantaloupes (o; ^2.65 2 crates peaches (a $2.75 2 crates grapefruit (a $4.30 Make out the sales slip which accompanied the goods on delivery. 43. B. Lewis sold to the \'ernon Hotel Company : 2 bu. apples (d: $2.10 2 bu. apples <§ $1.70 2 crates cantaloupes (a $3.20 2 crates peaches (W $3.25 1 crate grapefruit @ $5.05 Make out sales slip acconipanying the goods on delivery 44. The Central Packing Company sold to Charles Sowers the following bill of goods : 720 lbs. beef (a $8.25 per cwt. 615 lbs. hogs (a) $10.25 per cwt. 243 lbs. lamb (S: $9.50 per cwt. 150 lbs. lard @ $13.40 per cwt. 212 lbs. turkeys (a) 26c Make out a sales slip for this sale. 45. Prepare the sales slip sent by the Dairy Products Company to L. R. Dale, for the following purchase : 400 lbs creamery butter (a 30c 150 lbs. creamery butter (f? 31^20 125 dozen eggs (n 32c 30 lbs. cheese @ 16^4 c 46. Make out a sales slip from the Oil Supplv Company to S. M. Collins for 315 gal. gasoline at 23c. and 123 gal. gasoline at 28c. 47. Mr. Lee stopped at a filling station and had 10 gallons of gasoline put in the tank of his car. Make out a sales slip for this sale at 22c per gallon. 48. The Independent Supply Company sold 20 doz. bottles of pop to Ted Gun- ther at 25c a dozen. Make out the sales slip. 49. Mrs. Lewis sent Tom to Wheeler's Grocery for a can of tomatoes costing 12c, a can of corn at 15c, 25 pounds of sugar costing $1.98, and 3 loaves of bread at 5c a loaf. Make out a sales slip such as the grocer would send over with the goods when they are delivered. Citizens 2320 Filled by Solution No. 1. WHEELER'S Oak and Parsons Avenue Bell East 270 Columbus, O., August 10, 1916. Name Address MRS. LEWIS 1510 Bryden Street. 1 1 Can Tomatoes 12 2 1 Can Corn 15 3 25 lbs. Sugar 1 98 4 3 Bread 15 5 6 1 7 8 9 10 11 Past account Amount of hill Total 7 2 90 40 10 30 — =) Note — The grocery slip always carries "Past Account" and "Total." "Past Account" is =;ometimes placed at the top, as in Solution No. 2. When this i^ d(inc tlie amount of the bill for that day is not included. Solution No. 2. WHEELER'S Oak and Parsons Avenue Citizens 2320 Bell East 270 Filled by Columbus, O., August 10, 1916. Name Address MRS. LEWIS, 1510 Bryden Street. - Past Account 7 90 2 1 Can Tomatoes 12 2 1 Can Corn 15 3 25 lbs. Sugar 1 98 4 3 Bread 15 5 6 7 8 9 10 11 Total 10 30 Using form No. 1. make out sales slips for each day's purchases, carry- ing forward the "past account." 50. Aug. 12; yeast, 2c; Karo syrup, 12c; paraffin, 15o. 51. Aug. 14; 1 lb. butter, 38c; 6 oranges. 25c; head lettuce. 15c; 2 lbs. toma- toes, 10c. 52. Aug. 15; 1 bread, 5c; 1 pufifed rice, 15c; 1 lb. crackers, 10c. 53. Aug. 16; 1 head lettuce, 10c; 1 bread, 5c: peaches, 15c. 54. Aug. 19; 1 lb. lard, 18c; 1 lb. butter, 38c; 1 corn starch, 10c; >^ cake, 50c. 55. Aug. 20 ; 1 11). coffee, 38c ; 1 bread, 5c. 56. Aug. 22; Yi lb. cheese, 16c; 1 puffed rice, 15c; Argo Starch, 5c. 57. Aug. 24 ; 1 bread. 5c ; W'erk soap, 25c ; Yi doz. oranges, 25c ; lettuce. 5c. 58. Aug. 25; Yi pk. potatoes, 23c; cookies, 10c; 1 sack Pills, flour, $1.10; 1 qt. maple syrup, 50c. Aug. 27 ; 1 box bacon, 40c. 59. 60. Aug. 29; 1 bread, 5c; 1 lb. butter, 38c; Quaker ham, 40c; J4 lb. N. Y. cheese. 16c; P. & G. soap, 5c. 61. Make out \Vheeler's bill to Mrs. Lewis on vSept. 1. Since the items have been shown in the sales slips, this statement will give only the amount of the bill. Note 1. If form number 2 had been used for the sales slip, the statement sent on Sept. 1 would show the daily total for each day. Make out such a bill 2. When a bill is paid, it is receipted by writing or stamping "Received Payment" across its face, with the day of payment, signed by the individual re- ceiving the payment. 3. Payment is usually made in currency or check. 62. If Mrs. Lewis paid the above bill to James Avery, the cashier at \\'heeler's, write the receipt as James Avery would write it. August 10, 1916, the Cincinnati markets show the following quotations: PROVISIONS. LARD — Per lb. : Prime steam in tcs. 12.90 al3c, family steam in tcs. 14al4.30c. PORK— Per bbl. : Mess $24.S0a25, clear $26a26.50, clear family $26.50a27, jowl bean $22.50a23. DRY SALTED MEATS— Per lb.: Short clear 14.>4al5^c, e.xtra short clear 14'4al5J-ic, short ribs H^aH-Hc, bellies 16}^al7c. SMOKED MEATS— Per lb.: Short clear 16al6J^c, extra short clear 15 5/ial6c, short ribs 15^al6c, bellies 1734al8%c. SUGAR CURED MEATS— Per lb.: Hams 2OV2C, picnic 15alS^c, breakfast bacon 29;4 a30V2C, shoulders in packages IJalS^jc, New •York cut 15/ial6c, dried beef hams 29!/.a30c. SWEET PICKLED MEATS— Per lb.: Hams in tcs. 16'/2al7c, picnic 12;^al3c, bel- lies 16;'ial7^c, shoulders 13J/jal4c, New York cut do 14al4^ic. GREEN MEATS— Loose, per lb.: Hams 16^al7J4c, picnic 12J^al3c, shoulders MVi al3c, short rib sides 13al3K'C, extra short clear sides UaU.'iC, bellies light \%y^:\\'iV^c, heavy ]7al8c. GROCERIES. Coffee : Rio. Santos. Prime 14f^ 17f4 Good WVi 16li Eair 14 -4 15?^ Low fair \i% 15^ Good ordinary 13)i 141ii Ordinary MVi 1414 Low ordinary 127^ 13^ I'ancy Guatemala 19^^ Good Guatemala 17^ Mocha 29 30 Java 28 30 SUGAR— Per 100 lbs: Cut loaf $8.85, pow- dered $7.S5, cubes $8.05, granulated $7.65, con- fectioners' A $7.75, off A $7.15a7.35, white ex- tra C $6.95a7.05, extra C $6.85. New Orleans white clarified $6.85a6.95, do yellow $6.20a6.60. TEAS— Oolong 35a75c, Souchong 40a85c, English breakfast 40ca$1.10, Japan 50a80c, gunpowder 40a85c. RICE— Per lb. : Broken heads 4a4-)4c, extra fancy 65/ja7c, fancy 5J4a5)4C, second head 4Via5c, Japan 4)4a5^4C, T31ue Rose 5!4a5}ic. HEANS — Navy per bu. $9.40a9.50, prime marrowfat per bu $9.50a9.75, kidney red per bu $9a9.25, lima $7a7.25 per 100 lbs. MOLASSES — Choice to fancy open kettle pci- gal 58a65c, prime to strict open kettle 45 aSOc, fair to prime 36a42c, choice to fancy centrifugals 27a34c, prime to strict centrifu- g.ils 25a27c, common centrifugals 23a-5c. inCESWAX— Dealers pay 27c per lb. S.M'4a5;4c. BAGS— Wheat burlaps 9al5c, corn 10;il5c, oats 9al5c, cotton seamless second-hand 10a 18c, do new 18a20c, wool, 45c. BROOM CORN— There are hardly any of- ferings at all and there is a good demand noted, with the following range of 4'/y.\/y>c covering the various states and qualities. Crooked and poor seedy stock, while not very actively sought, will sell only at a reduced ^ BROOMS — Per doz : Common $1.50a2, par- lor $2.50, steamboat $4.50, stable $6.50. DRIED FRUITS— Per lb: Apples: Cali- fornia country sun-dried 2a4c, evaporated 6a 7c. Peaches: California standard to choice AyiaSyic, California fancy 6a7c. Apricots: California choice lO'^allc, California fancy 12al3c. Prunes: California S^^alOc. Raisms : California seeded 7a8c, loose Muscatels 6'/, a7/.c. FARM AND DAIRY PRODUCTS. (Produce Exchange Quotations.) BUTTER— Whole milk extra 3254c, central- ized extra 30c, centralized firsts 26K'C. cen- tralized seconds 23 '/2C, dairy fancy roll 23c, packing stock No. 1 21i^c, packing stock Ao. CHEESE — New York dairies new 20c, do flats new 19c, do chedders new 19c, do twins new 19c, Michigan flats 18'/,c, Ohio flats ISyic, longhorns 18c, Wisconsin daisies 19c, do flats 18c, do twins 18c, imported Schweitzer No. 1 40a42c, extra No. 1 Schweitzer loaf new 3Sc, brick 19c, Schweitzer block old 28c, Schweitzer block new 24c, Wisconsin Lim- burger 17;4c, New York Limburger l&Vzc, old sharp New York and Wisconsin flats 21c. EGGS— Prime firsts (loss off) 24c, firsts 22i'2C. seconds 18 '^c LIVE POULTRY — Fowls 4 lbs and over 16c, do under 4 lbs 16c, fryers 2'/^ lbs. and over 20c, roosters 12c, broilers 2 lbs and over 22c, do under 2 lbs 19a21c, spring <\urU^ white 2 to 3 lbs 15c, do over 3 lbs 15c, ducks white 3 lbs and over 14c, do white under 3 lbs 12c ducks colored 12c, hen tur- keys 8 lbs and over 21c, turkey toms 10 lbs and over 21c, turkeys crooked lireasted lOilJc, cull turkeys 6a8c, geese full feathered < b imo 10c, geese medium 9c, geese common 8c, guineas per doz $4, pigeons old per doz $1.50. SQUABS — One lb and over are quoted at $3 per doz, 2 lbs 60c per doz. LAMBS— Spring 8a 10c, yearling 7a9.-. CALVES— Select weight 12c, choice 10', .;i IIV2C, common 6a 10c. FRUIT AND VEGETABLES. CALIFORNIA AND WESTERN FRUITS — Plums: \'ixon per box $2a2.50, Hungarian per box $2.25a2.50. Tragedy per box $2.50n 2.75. Pears: California Bartletts per half box $1.50, California per 40-11). box $3.25a3.50. NEW APPLES— Maiden Blush per bbl $3). $4.50. Per Royal per bbl $3.25a3.50, Early Harvest per bbl $2.75a3, do per hamper $la $1.25, new Astrican per hamper $lal.25. Trans- parent per hamper $1.25al.50. BANANAS — Jumbo bunches extra large $1.75a2.25, medium bunches $1.35al.60. CRABAPPLES— Per bu $lal.25. CANTALOUPES— California Turlock stand- ard crate $1.25a2, California Turlock soft $1, California flat crates 75a85c, Indiana stand- ard crate $lal.50, Indiana flat crates 35a60c, Indiana baskets 25a40c, Honey Dew melons per crate $2a2.50. CURRANTS— Per 24-qt. crate $2a2.2S. LEMONS— California per box $7.50a8, Messina per box $7a7.2S, limes Florida per crate $3.25a3.75. HUCKLEBERRIES— Virginia 12-15-lb bas- ket 75c, Virginia 20-lb basket $lal.25. ORANGES— Valencia per box $3.25a4.25. PEACHES — Elberta extra fancy per crate $3a3.25, Elberta per crate $3a3.25, Elberta oer bu $3a3.25, homegrown Carmen per bu $2.50a2.75. PLUMS — Damson per basket 40a45c. PEARS— Sugar per bu $lal.25, alligator |)er doz $1.50al.75. PINEAPPLES— Sizes 18s, 24s and 30s $3 ;i3.25, sizes 36s, 42s and 48s $1.75a2.7S. CABBAGE — Homegrown per bbl $1.25a 1.50. CARROTS— Homegrown per bu $lal.25, homegrown per doz 20c. CLCUMBERS — Homegrown per doz 30a 35c, Eastern per hamper 75ca$l. CAl'LIFLOWER— Homegrown per bu $1 CELERY— Michigan per crate 25a30c. EGG PL.^NTS- Florida per crate $1.7Sa2, \evv Orleans per bbl $4a5. GARLIC— Per lb 9al0c, new per lb 7c. HORSERADISH— Per lb 7c. LETTUCE— New York head lettuce per crate $1.35al.50, homegrown curly per lb ONIONS — Homegrown yellow per bu $1.25 a 1.50, homegrown white per bu $1.50al.75, Louisiana 80-lb sacks $2.50a2.75, Louisville per bbl $3.7Sa4, Crystal white per crate $2 .i2.25, leek per doz 40a60c, Spanish per crate $1.50al.75. POTATOES — Eastern Cobblers per bbl $3.50, Triumphs per bbl $3.50, homegrown per bbl $3a3.50. Early Ohio and Triumphs m bull- per I1U on track $1.10al.l5, Idaho bakers per box $lal.25. PEPPERS— Florida per bulk crate $lal.l5, Tennessee per hamper $1. PEAS— New York per bu $1.50al.7S. PARSLEY— Per doz bunches 25a30c. PICKLES— Per 100 35a40c. OKRA— Per crate $1.7Sa2. SUGAR CORN — Homegrown per doz 15a 20c. SWEET POTATOES— Mississippi per ham- per $1.25al.50, Virginia Sweets per bbl $4. SOUASH— Florida per crate $2a2.25. TURNIPS-Per lb $2. WATERMELONS— $25 to $40 per 100. STRING BEANS — Homegrown per bu $2 a2.25, wax per hamper $1.50a2. TOMATOES— Homegrown per bu 40a75c. RADISHES — Homegrown long per doz 15 a20c. Note 1. All bbls. are to be considered as 50 lbs. or 4 bu. unless otherwise quoted and all boxes as 25 lbs. or 2 bu. each. When a range of prices is quoted use the lowest price. 2. Secure today's market quotations from your local paper and compare them with the quotations given above. Make out bills and extend footings: 63. 75 lbs. prime steam lard 62 lbs. sugar cured ham 17 lbs. breakfast bacon 82 lbs. sweet pickled shoulders 128 lbs. green hams 15 64. 128 lbs. priire steam lard 614 lbs. mess pork 225 lbs. prime Rio cofifee 768 lbs. fair Santos coffee 268 lbs. cut loaf sugar 65 lbs. Oolong tea 65. 65 lbs. extra fancy rice 122 lbs. fancy rice 3 bu. navy beans 16 gal. choice molasses 14 lbs. beeswax 3 bbls. Ohio salt 66. 248 lbs. granulated sugar 1246 lbs. ordinary Santos tea 250 lbs. prime steam lard 364 lbs. Japan tea 758 lbs. fancy rice 67. 3y2 bn. kidney red beans 250 lbs. lima beans 175 lbs. Jumbo fancy hand picked "peanuts 75 wheat burlap bags 2^4 doz. common brooms 75 parlor brooms 68. 160 lbs. second liead rice 75 lbs. Blue Rose rice 570 lbs. Mocha Rio 3 bbls. standard granulated salt 175 lbs. California sun-dried apples 68 lbs. evaporated apples 69. 27 bu. Maiden Blush apples 76 doz. prime first eggs 68 doz. firsts eggs 63 5-lb. fowls . 248 ]l)s. spring lamb 70. Zy^doz. l'/>-lb. sc|ua])s 268 lbs. .select weight calves 57 bu. crabapples 3 bunches Jumbo extra large Imnclios liananns 4 crates California Turlock cantaloupes 71. 2^ crates currants 3 boxes California kMrons 3 20-lb. baskets huckleberries 61 boxes oranges 72. 12 crates Elberta peaches (extra fancy) 72 lbs. low fair Rio cofifee 128 lbs. Japan rice 17^/2 lbs. beeswax 16^ doz. parlor brooms 73. 23/2 bbl. cabbage 3y2 bu. carrots 64 home-grown cucumbers 16 crates Michigan celery 124 lbs. California dried prunes. 74. 73/2 lb. horseradish 2 crates Florida eggplant 163^-2 bu. homegrown yellow onions 78 bu. Eastern Cobblers potatoes 648 lbs. ordinary Santos coffee 45 lbs. breakfast bacon (sugar cured) 75. 72 doz. radishes 175 watermellons 214 bu. homegrown string beans 75 bu. turnips 22 ears hoiregrown sugar corn 76. 175 pickles 31^2 crates Florida peppers 2^4 crates Florida squash 15 hampers Virginia sweet potatoes 75 lbs. California choice apricots (dried fruits) 77. 15 boxes Mxon California plums 28 bbls. pound royal apples 72 lbs. extra fancy rice 18 lbs. Japan rice 62 lbs. fancy Guatemala coffee 78. 128 lbs. Michigan Flats cheese 214 lbs. whole milk butter 320 lbs. packing stock No. 1 butter 16 doz. firsts eggs 128 lbs. spring lamb 79. 3 Hampers Tennessee peppers 17 brooms (steamboat) 13 lbs. Blue Rose rice 21 lbs. Fair Rio coffee 12 lbs. short clear drv salted meat 17 80. Find the cost of 12 lbs. each of all grades of sugar-cured meats. 81. Find the cost of 28 lbs. each of all j^rades of green meats. 82. What will 2,000 lbs. of each grade of sugar cost? 83. Frank Williams starts in the grocery business. He orders from the Cap- itol City Retail Company: 30 lbs. of each grade of butter 15 lbs. Ohio flats cheese 12 doz. firsts eggs 15 33^-lb. live poultry 2 boxes Hungarian plums 2 bbls. early Harvest apples 2 medium bunches bananas The quotations on grain are listed below : Wheat— No. 2 red winter $1.38al.40. No. 3 $1.33al.38. No. 4 $1.0Sal.26. Corn quotations: No. 2 vellow 86 a86^ No. 6 white 78 a82 No. 3 yellow 8S>^a86 No. 2 white 86 a87 No. 3 white 85 a86 No. 4 white 83 a84 No. S white 82 a83 No. 4 yellow 83 a84 No. 5 yellow 82 a83 No. 6 yellow 78 a82 No. 2 mixed 85 J^ a86 No. 3 mixed 85 a85 1/4 No. 4 mixed 825^a835^ No. 5 mixed 81^a82^ No. 6 mixed 78 a82 Ear Corn — White 85a87c, yellow 86a88c, mixed 85a87c. Oats— No. 2 white 44a45c, standard white 43J/^a44c. No. 3 white ASyic. No. 4 white 42a42i/^c. No. 2 mixed 42a42i4c. No. 3 mixed 41a42c. No. 4 mi.xed 39a40c. Rye— No. 2 $1.10al.l2, No. 3 $1.03al.06. No. 4 90ca$1.02. Barley — No 2 winter 70a75c, No. 3 win- ter 65a70c, No. 4 winter 60a65c, No. 1 feeding 60a75c, No. 2 spring 84a88c, No. 3 spring 80a84c, No. 4 spring 7Sa80c. Malt — Spring barley 93ca$1.02, lower grade 91a93c. Hay — No. 1 timothy $15. No. 2 timothy $13, No. 3 timothy $11, No. 1 clover mixed $13.50, No. 2 clover mixed $11.50. No. 1 clover $11, No. 2 clover $9. oats str:iw $7a $7.50, wheat straw $7a7.50, rye straw $8.S0a9. Make out and extend the footings in the following problems : (Use the lowest i)rice when two are given.) 84. 20.500 bu of No. 2 red wheat 15,000 bu. of No. 3 red wheat 4,690 bu. of No. 4 red wheat 6,596 bu. of No. 3 red wheat 7,254 bu. of No. 2 red wheat 85. 5,369 bu. of No. 2 white corn 3,654 bu. of No. 3 white corn 5,100 bu. of No. 4 white corn 656 bu. of No. 5 white corn 1,763 bu. of No. 6 white corn 86. 1,356 bu. of No. 2 yellow corn 6,296 bu. of No. 3 yellow corn 5,617 bu. of No. 4 yellow corn 1,659 bu. of No. 5 yellow corn 1,369 bu. of No. 6 yellow corn 18 87. 3,697 bu. of No. 2 mixed corn 1,697 bu. of No. 3 mixed corn 5,316 bu. of No. 4 mixed corn 4,619 bu. of No. 5 mixed corn 7,619 bu. of No. 6 mLxed corn 88. Find the cost of 5,560 bu. of each grades of ear corn. 89. 236 bu. No. 2 white oats 563 bu. Standard white oats 1219 bu. No. 3 white oats 2116 bu. No. 4 white oats 590 bu. No. 2 mixed oats 3116 bu. No. 3 mixed oats 1619 bu. No. 4 mixed oats 90. 5763 bu. No. 2 rve 2116 bu. No. 3 rye 5112 bu. No. 4 rye 1319 bu. No. 3 white oats 654 bu. No. 6 w^hite corn 91. A broker bought 10,550 bu. of each grade of barley. Find the cost. 92. The broker in problem 91 sold the barley at an increase of 3>4c per bu. Make out the bill and find the gain. 93. A grain dealer bought 2136 bu. of spring barley, also 7169 bu. of lower grade malt, 8639 bu. of ear corn white. 6319 bu. of No. 2 white oats at au advance on each of Ij/c over the market price. Find the cost. 94. Find the cost of the following purchases : 235 Tons No. 1 Timothy hay 119 Tons No. 2 Timothy hay 264 Tons No. 3 Timothv hay 569 Tons No. 1 Clover mixed 1316 Tons of No. 2 Clover mixed 95. Make out a statement for the following : 6916 Tons No. 1 Clover 1650 Tons No. 2 Clover 570 Tons Oats Straw 650 Tons Wheat Straw 760 Tons Rye Straw 96. A broker bought for his principal : 1659 bu. of No. 3 red winter wheat at l^'C below the market price 2369 bu. of No. 3 yellow corn at the market price 6539 bu. of yellow ear corn at 2j-^c above the market price 1780 bu. of No. 3 white oats and 3560 of No. 3 winter barley at a reduction of y2C from the market price. 19 97. Use aliquot parts in making extensions in the following bills: 24 yds. of cloth at 123^0 60 yds. of cloth at SSM^c 36 yds. of cloth at SVfsc 160 yds. of cloth at 6^4c 98. 54 yds. of cotton goods at 614c 72 yds. of cotton goods at 12;'iC 144 yds. of cotton goods at 662.3c 60 yds. of cotton goods at 40c 125 yds. of cotton goods at $1.25 99. 36 bn. of wheat at $1.25 56 bu. of wheat at $1.50 124 bu. of corn at 75c 25 bu. of corn at 88c 160 bu. of seed at $12.50 100. 120 acres at $125 80 acres at $150 720 acres at $11 2i/< 600 acres at $10654 101. 112 yds. of cloth at 12^4 c 96 yds. of cloth at 6^4c 54 yds. of cloth at 10c 18 yds. of cloth at 15c 64 yds. of cloth at Uy.c 102. 6V2 yds. of cotton goods at 6j{.c 650 yds. of cotton goods at $0,065 5J/2 yds. of cotton goods at 55^c 8^/2 yds. of cotton goods at 7^c 6% yds. of cotton goods at 6}4 103. 24 lbs. of fruit at 162/ic 92 lbs. at 50c 64 lbs. at $1.75 66 lbs. at 33V^c 16 lbs. at 634c 104. 12 yds. of cloth at 13'f.c 50 yds. of cloth at 62c 80 yds. of cloth at 12K>c 160 yds. of cloth at 75c 300 yds. of cloth at $1.25 20 105. 64 bu. of grain at 70c 16 bu. of grain at dZ^ic 600 bu. of grain at 662^^c 1000 bu. of grain at $1.03-; <^ 640 bu. of grain at $1.12j^ TO THE TEACHER: 1. A multitude of combinations of problems can be given from the differ quotations listed in this book, if you find the number provided inadequate for the time allotted to this work. These problems furnish excellent drill work oi; fractions, multiplication, addition and other essential subjects. See to it thai all work done is done in ink. Place a penalty on erasures. Pupils should bt trained to do work right the first time. 2. At the very beginning of the bookkeeping work require the pupil to write the names of the various books at the top of the first page, e. g. Bills and Accounts should be written at the top of page 45, Cash book at the top of page 52, etc. 3. The pages upon which the pupil makes his entries are perforated. These pages must be removed from the book at the end of each school term. Do not neglect this. 4. See to it that all entries are made carefully and that all books are kept as neatly as possible. 5 Special exercises in Bookman's Business Arithmetic can be put up in Bill form and extensions made ; e. g , Group 4, Page 34, Problem 7-8-9 ; Page 50, Problem 31-32--33; Groups 2 and 3. Pages 84-86, etc. First Steps in Bookkeeping DEFINITIONS. Cash. By cash we mean in bookkeeping, gold, silver, paper money, and any kind of paper that can l^e immediately converted into currency or deposited at bank to our credit, such as checks, bank drafts, postal money orders, etc. Cash Receipts. Any cash received for goods sold or in payment of accounts, or in any way coming into the business is known as cash receipts. Cash payments. Any cash paid out for goods purchased or in payment of accounts or expenses, or for any other purpose is known as cash payments. Cash balance. The difference between the cash receipts and the cash payments is known as the cash balance. THE CASH BOOK. The cash book is a form of record showing the cash received, the cash paid out. and the balance of cash on hand. A double page is generally used, the left hand page taking the cash received, and the right hand page the cash paid out. (See illustration.) By adding the cash receipts and the cash payments, and subtracting the cash paid out from the cash received, Ave arrive at the balance of cash on hand, known as the cash balance. The cash book may be balanced and ruled at the end of each day's busi- ness, or it may be ruled at less frequent intervals, to suit the convenience of the business. To rule the cash book we find the cash balance as stated above, and then write this balance, usually in red ink, on the line immediately under the last entry on the right hand or cash payments side. This will make CASH RECEIPTS. L.F. 1916 1 April 1 Henry Pierce, Loan, 5 00 2 Sales, 100 papers. 1 31 3 Sales. 75 " 95 4 Sales, 90 " 1 17 5 Sales, 125 " 1 51 6 Sales. 150 " Total Receipts, 1 90 11 84 1 11 84 April 6 Balance, 8 40 22 the totals of the two sides equal as they should be. The lines are then drawn as shown in the illustration and the equal footings inked in on each side. After this is done, the cash balance should be brought down on the left hand side on the first line under the ruling. When beginning a business with a cash balance on hand, the balance is always written as the first entry on the left hand or cash receipts side. Space is always provided on each side of the cash book in which to write the date of the transaction, what the cash is received or paid out for, and such explanation as is necessary to make a complete history of the transaction. Study the following illustration carefully by observing how each trans- action is entered in the cash book, and how the cash book is balanced and ruled and the balance brought down. Illustration. Memoranda of Transactions. Apr. 1. George Pierce borrowed S5.00 from his father, Henry Pierce, with Avhich to start a newspaper business. Apr. 2. He bought 100 papers, paying cash for same $ .60 2. He sold 100 papers for cash 1.31 3. He bought 75 papers, paying cash 45 3. He sold 75 papers for cash 95 4. He bought 90 papers, paying cash 54 4. He sold 90 papers for cash 1.17 5. He bought 125 papers, paying cash 75 5. He sold 125 papers for cash 1.51 6. He bought 150 papers, paying cash ,90 6. He sold 150 papers for cash 1.90 6. He paid his brother for helping to sell papers 20 What is his cash balance? 1916 April CASH PAYMENTS. LF. Purchases 100 papers, Purchases 75 Purchases 90 " Purchases 125 " Purchases 150 " Expense paid help, Total Payments, Balance, 84 23 May 1. 1. 1. 2. 2. 3. 3. 4. 4. 4. Set up the following problems in cash book form observing the form given above, balance and rule the cash book and bring the balance down. Also ascertain the net profit where called for. Begin the first problem at the top of page 52. Drop down tw(j lines and begin the second problem. 1 George Smith borrows $10.00 from his father, Elmer Smith. Bought 100 papers for $0.50 cash Sold 100 papers for $1.25 Bought 75 papers for $.38 Sold 7':^ papers for $1.02 Bought 120 papers for $.60 Sold 120 papers for $1.58 Bought 200 papers for $1.00 Sold 200 papers for $2.71 Paid for help in selling, $.38 What is the profit? 2 May 1. A boy has a balance of $20.00 on hand " 1. He buys 40 bu. of apples, 40c per bu. " 2. Sells 5 bu. at 60c per bushel " 3. Sells 14 pks. at 20c per pk. " 4. Sells IS pks. at 22j/c per pk. " 5. Sells 20 bu. at 65c' per bu " 6. Sells 7 bu. at 50c per bu. What was his profit on the apples? 3 Allowance. A girl receives $5.00 from her father June 1. Spends 50c for ribbon " 2. Spends 30c for candy and ice cream " 3. Spends $2.00 for shoes " 4. Spends $1.00 for toys for a little brother. " 4. Spends 50c for small toilet articles " 5. Receives $2.00 from her father 4 Apr. 1. A boy borrows $5.00 from his father with which to start a garden. 2. He buys a spade, hoe and rake, paying cash, $2.00 " 5. He buys garden seeds amounting to 48c for cash " 10. He buys some wire netting to enclose parts of garden, for $1.85 May 20. He sells vegetables amounting to $2.17 " 24. Sales are $1.88 " 27. Sales are $3.71 June 1. Sales are $4.12 " 10. Sales are $2.06 " 12. He pays back the $5.00 which he borrowed from his father What was his profit? 24 Mar. 1. " 2. " 2_ " 3. June 1. Sept. Oct. 1. 1. " 1. Nov. 1. " 2. A boy borrows $15.00 from his brother to l)uy chickens He buys poultry netting costing $2.70 Other items for the chicken park cost $1.75 He buys a pen of eight chickens for $9.00 Sales of eggs to date amount to $2.22 Sales of eggs from June 1, amount to $1.84 Young chickens sold amount to $15.75 Chicken feed to date has cost $6.87 He sold the remaining chickens for $10.58 He pays back the $15.00 borrowed from his brother What is his profit? 6 1915. Nov. 1. A. C. Smith has on hand $1,000 2. He buys 15 head of cattle at $50. per head " 3. He buys 400 bu. of corn for feed at 60c per bu. 3. He buys 5 ton of hay at $12.00 per ton ■" 4. He buys 150 bu. of oats at 35c per bu. " 4. He pays for grinding feed, $8.00 1916. Mar. 1. He sells 10 head of cattle at $90.00 apiece Apr. 1. He sells 5 head of cattle at $100.00 apiece 1. He pays for help in feeding to date, $30.00 What is his profit or loss on the cattle, all the feed having been used up A boy has a cash balance of $50.00 He rents two acres of land, paying cash in advance, $20.00 He pays for plowing and harrowing, $5.00 He pays for help in cultivating. $4.00 He pays for help in cultivating, $4.00 He sells produce for cash, $35.00 He sells- produce for cash, $40.00 He pays for help, $5.00 He sells produce for cash, $38.54 He sells produce for cash, $21.93 He sells balance of produce for cash. $43.82 What is his profit? Apr. 1. " 1. " 2. May 1. " 10. June 1. " 10. " 15. " 20. July 30 Sept 1. 25 THE LEDGER. The ledger is a book in which the original entries are grouped and classified under the proper headings. It is generally arranged with two money columns on a page, with space just to the left of each money column in which to place the date, in some cases certain explanations, and the page (and initials) of the book from Avhich the items are taken. In correct bookkeeping no entries are ever made directly in the ledger, but are transferred to it from the cash book or other books of original entry. This makes the ledger a book of sec- ondary entry as it receives only such entries as liave already l^een made in some other book. Posting. The process of transferring the original entries to the proper groups in the ledger is called posting. In bookkeeping these groups are known as accounts. This process is not at all difficult but must be done with the greatest care to guard against error. In posting you should have the cash book and ledger arranged conven- iently before you. Take the first entry under cash receipts, turn to the proper account in the ledger and place the amount in the money column on the right hand side. Next put the date in the date column, and the page of the cash book from which it is taken in the narrow column just to the left of the money column and the initial C. (cash book) just to the left of the page column. Neixt go back to the cash book and place in the narrow column marked at the top L. F. (Ledger Folio) the page of the ledger to which it is taken. Take the next entry in cash receipts and post it to the right hand side of the proper account in the same manner as described above. Proceed in this manner until you have posted all the entries under cash receipts to their proper accounts. Next take the entires under cash payments and post them to the ledger in like manner, \vith this exception, that all such entries are posted CASH RECEIPTS. LP. 1916 Tan. 1 1 W. H. Simpson Investment, 2500 00 5 1 Sales, 26 15 6 1 Sales, 18 92 7 1 Sales, 2>2 61 9 1 Sales, 38 19 10 1 Sales. 41 16 11 1 Sales. 48 27 12 1 Sales, 52 16 13 1 Sales, 68 77 14 1 'Sales, 184 16 1 Total Receipts, 3010 39 , 3010 39 Jan. .. Balance, 2556 57 26 on the left hand side of the account in the ledger. The reason for this will be explained later. In the following illustration trace each entry from the cash book to the ledger. Note : The teacher should go carefully over the posting with the class in the following illustration. 1916, Jan. Jan. Illustration. 1. W. H. Simpson begins a retail grocery business, investing cash $2500. 2. Bought mdse. of Ranger & Co. for cash $191.60 3. Bought mdse. of A. B. Siler & Co. for cash 168.27 4. Paid rent for month in advance 40.00 5. Cash sales for the day 26.15 6. Cash sales for the day 18.92 6. Paid cash for miscellaneous expenses 1.82 7. Cash sales for the day 32.61 7. Paid clerk's salary for week 15.00 9. Cash sales for the day 38.19 10. Cash sales for the day 41.16 11. Paid delivery expenses 10.00 11. Cash sales for the day 48.27 12. Cash sales for the day 52.16 13. Cash sales for the day 68.77 13. Paid clerk's salary for the week 15.00 15. Sold bal. of mdse. on hand for 184.16 15. Paid miscellaneous expenses amounting to 12.13 CASH PAYMENTS. L.F. 1916 Jan. 2 3 4 6 .\ 14 14 Purchases, Purchases, Rent for January, Expense, Salaries, clerk, Delivery expense, Salaries, clerk, Expense, 191 168 40 1 IS 10 60 27 00 82 00 00 00 13 Total Payments, 453 82 14 ' Balance. 2556 57 3010 39 27 W. H. SIMPSON. CAPITAL. 1916 Jan. I C 1 2500 1 SALES. 1916 Jan, 5 6 7 9 10 11 12 13 15 c c c c c c c c c i 26 18 22 38 41 48 52 68 184 15 92 61 19 16 27 16 77 16 PURCH ASES. 1916 Jan. 2 3 C C 2 2 191 168 0' 27 1 4 2 ] 40 iK^ JT. • 1916 Jan. C GO 6 14 EX PE NSE. =" 1916 Jan. c C 2 2 1 12 82 13 SA :.Ai ^lES. — — 1916 Jan. 7 14 c C 2 2 15 IS 00 00 E )EI JVE RY expe: \TS1 1 _ 1916 Jan. 11 C 2 10 00 ' 28 THE TRIAL BALANCE. The trial balance is taken, to prove the equality of the posting to the two sides of the ledger. To take a trial balance you first add the columns of the different accounts in the ledger and place the footing of each column close up under it in pencil. Next take a sheet of paper and rule two columns on the right hand side, and write at the top "Trial Balance" and the date. Turn to the ledger and write down the name of each account together with the footing, placing footings of accounts on the right hand side of the ledger in the right hand column and those on the left hand side in the left hand column. Next take the cash balance from the cash book and put it in the left hand column. If your work is correct the two columns should add up alike. A little study will show why this is true. First the cash book is balanced, the two sides adding alike. The cash receipts are then posted to the right hand side of the ledger and finally brought down in the right hand column of the trial balance. The cash payments are pbsted to the left hand side of the ledger and finally brought down in the left hand column of the trial balance. The cash balance is next brought down in the left hand column- of the trial balance. As the cash book is in balance the trial balance niust also balance if there is no error in your work. Study the following trial balance, carefully tracing the footings of each account in the ledger to the trial balance. (Note to teacher.) It is very important that the pupils understand the mechanical part of a trial balance, and the reason why it balances. This process should be gone over carefully by the teacher with the entire class. It will be an excellent drill to have the pupils post the items from the cash book in the illustration to a separate sheet of ledger paper and take off. a trial balance, or it may be a good idea to have the cash book written up as well. The cash book and ledger forms for this exercise can be ruled up on blank paper. TRIAL BALANCE. JAN. 15. 1916. W. H. Simpson, Capital, 2500 00 Sales. 510 39 Purchases, 359 87 Rent, 40 00 Expense, miscellaneous, 13 95 Salaries, 30 00 Delivery expense. 10 00 Cash, -2556 57 ^- 3010 39 3010 39 ACCOUNTS. As we have seen heretofore, the different groups in the ledger are known as accounts. When the accounts in the ledger are properly classified each account will represent some one definite thing. We have in the foregoing trial balance : W. H. Simpson, capital., showing the amount he had invested in the business. Sales, showing the amount received for goods sold. Purchases, showing the amount paid for goods bought. Rent, showing the cost for rent of store. Expense, showing the cost for miscellaneous expenses. Salaries, showing the cost for clerks. Delivery expense, showing the cost of delivering goods sold. Cash, showing the amount of cash on hand, 29 The Profit and Loss Statement. With a thorough understanding of the foregoing accounts, the following profit and loss statement resolves itself into a simple problem in arithmetic. The purchases are deducted from the sales, giving'the gross profit. From this the total expenses are deducted leaving the net profit of $56.57. As the cash on hand is now just $56.57 more than at the beginning of the oeriod. it is proof of the correctness of the work. Study the form of the following statement carefully : PROFIT AND LOSS STATEMENT Jan. I to Jan. 15, 1916. Total sales, Less purchases (cost of goods sold), 510.39 359.87 Gross profit. Expenses — Rent, Expense, miscellaneous, Salaries, Delivery expense, 40.00 13.95 30.00 10.00 150.52 Total expenses. 93.95 Net profit. 56.57 PERCENTAGES. The successful business man thinks and manages largely in terms of percentage, and his success or failure is generally indicated by the degree to wdiich he studies and uses such percentages. A careful comparison of the percentage of gross profit, net profit, and expenses to sales from month to month and year to year will surely indicate the causes for success or failure of a' business. The following are a few of the percentages which can be figured from the profit and loss statement. vStudy them carefully. What is the percent of profit on the capital invested? Process — Divide the net profit by the capital. 56.57 -^ 2500 = 2.26 + % What percent of the sales is gross profit? Process — Divide the gross profit bv the sales. 150.52 ~ 510.39 = 29.49 + % What percent of the sales is required to meet total expenses? Process — Divide total expenses by sales. 93.95 ^ 510.39 = 18.4 + % What percent of the sales is net profit? Process — Divide the net profit by the sales. 56.57 H- 510.39 = 11.08 + % What is the percent of net profit on the cost? Process — Divide the net profit by the cost of sales. 56.57 ^ 359.87 = 15.71 + % 30 1. Enter the following transactions in the cash book immediately following the last cash book entries. 1916. Feb. 1. W. H. Simpson begins a retail grocery lousiness, investing cash $2556.57. Feb. 1. Bought bill of mdse. of Gregg & Co. for cash $322.19 Bought bill of mdse. of A. C. King for cash 161.16 Cash sales for the day 49.63 Paid miscellaneous expenses 4.16 Cash sales for the day 65.12 Cash sales for the dav 71.13 Cash sales for the day 48.12 1. 1. 2. 3. 3. 4. 5. 6. 6. 6. 8. 9. 9. 9. 10. 11. 12. 13. 13. 13. 13. Bought bill of mdse. of Smtih & Co. for cash Paid clerk's salary. Paid delivery expenses. 19 12.00 7.05 Cash sales for the dav 61.94 62.16 30.00 3.34 Cash sales for the day Paid rent of store Paid miscellaneous expenses Cash sales for the day 62.93 Cash sales for the day 71.16 Cash sales for the day 84.66 Sold balance of mdse. for cash 168.21 Paid clerk's salary for week 12.00 Paid delivery expenses 8.21 Paid miscellaneous expenses 9.24 Balance and rule the cash book, post the entires to the ledger and take off a trial balance and profit and loss statement. Instructions for Opening the Ledger. At the top of page 77 write W. H. Simpson capital. On the 5th line below and in the middle of the oage write "Purchases." On the 6th line below pur- chases write "Sales." OA the 12th line below sales write "Salaries." On the 5th line below salaries write "Expense." At the top of page 78 write ^"De- livery Expense." On the 5th line below delivery expense write "Rent." Figure the following percentages: What is the percent of net profifon the investment? What percent of the sales is gross profit? What percent of the sales is net profit? What percent of the sales is required to meet salaries? What percent of the sales is required to meet delivery expenses . What percent of the sales is required to met miscellaneous expenses. What percent of the sales is required to meet total expenses? 2. Enter the following transaction in the cash book: 1916. . . , Mar. 1. W. B. Sutton begins a retail furniture business, investing cash $3000 Bought bill of goods of Bentlev Bros, for cash $628.00 Bought bill of goods of Gentry & Co. for cash Bought bill of goods of The Atlas Co. for cash Paid rent for month Paid miscellaneous expense lo-/ 1 Cash sales for the day HA^ Cash sales for the day ^o4.12 Paid delivery expenses 071"'^" Bought bill of goods of Hinman Co. for cash ^rQ9i Cash sales for the day 068.-I Mar. 8. 8. 9. 10. 11. 11. 11. 397.91 426.84 45.00 31 Cash sales for the day 319.08 Cash sales for the day 428.28 Paid clerk's salaries to date 50.00 Paid delivery expenses 21.16 Paid miscellaneous expenses 18.87 Cash sales for the day 189.16 Cash sales for the day 368.27 Cash sales for the day 221.22 Cash sales for the day 166.68 Paid delivery charges 16.22 Paid salaries to date 25.00 Paid miscellaneous expenses 7.66 (Open the following accounts in the ledger, beginning at the top of page 79. allowing each account the number of lines indicated.) W. B. Sutton capital (3) Purchases (4) Sales (12) Salaries (4) Expense (4) Delivery expense (5) Rent (3) Balance and rule cash book, post the entries to the ledger and take off a trial balance and profit and loss statement. Figure the percentages as called for in the preceeding problem. Make out bills for the following purchases and sales. After the answers have been approved by your teacher, enter all the transactions in the cash book. Balance and rule the same. 1916. June 1. \V. B. Sutton begins a grocery business investing cash, $3,000. June 2. Bought of Burman & Co., giving check in payment : 50 cans Blue Label coffee ra! 15c 50 cans Spring River coffee ^', 13c 5 sacks sugar, 500 lbs., @ 5c 5 sacks rice, 500 lbs., @. .' 714c 5 doz. cans corn (cd 90c 3. Bought of Bentley & Co., giving check in payment: 4 doz. bottles Chief Brand olives (ci 75c 5 doz. bottles sweet pickles @ 70c 10 lbs. mustard @ '. 20c 5 lbs. ginger @ 18^/2C 5 lbs. cloves @ l'^^/4c 1 box Crystal soap, 100 cakes. (Ti) 2I2C " 4. Gaye check in payment of rent for June $50.00 " 4. Paid miscellaneous expenses in cash 2.18 " 6. Bought of Burman t^l' Co.. giving check in payment : 150 cans Spring River coffee (a) 12^c 20 sacks sugar, 2,000 lbs., @ . .^ S^c 10 sacks rice, 1,000 lbs.. @ 7Hc 10 doz. cans tomatoes (oj ^^^c 8. Sold to A. C. Stillwcll. f..r ca4c 500 lbs. rice @. 6>4c 10 doz. cans hominy (a) 95c 15. Sold to Geo. Borough for cash: 50 lbs. Spring River coffee (a) 26i4c 600 lbs. sugar @ ^^^c 2 lbs. cloves (a), 30c 600 lbs. rice @ ^^c 15. Sold to E. M. Pierce for cash: 300 lbs. sugar @ n'A<^ 10 cans corn @i ^Oc 15 bottles sweet pickles («) o^c 5 boxes Crystal soap, 500 cakes, (a) Wa^ 16. Sold to G. W. Beck for cash. 6 lbs. mustard @ ^Oc 2 lbs. cloves @ ^Oc 50 cans hominy @ -^ 5 boxes Crystal soap, 500 cakes, @ 414c 16. Sold to Smaltz Bros.: 15 bottles sweet pickles @ 10c 5 boxes Crystal soap, 500 cakes, @ in 25 cans tomatoes, (@i ^Oc 3 lbs. cloves @ ^;0c 18 bottles Chief Brand olives @ lOc 33 17. Sold to J. M. Mfddleford for cash: 2 lbs. cloves @ 30c 20 cans hominy @ gi/^f- 1 box Crystal soap. 100 cakes. (Tv 4i^c 17. Sold to Geo. Borough for cash • 50 lbs. Spring River coflFee fa} 227^c 2 sacks sugar. 200 lbs.. rFu. /i^c 4 sacks rice, 400 lbs.. @. Qi/^c 2 lbs. ginger @i .^ 20c 1(S. Sold to J. Edwards for cash ; 25 lbs. Spring River coffee (a), 23c 2 sacks sugar, 200 lbs., (a). 854c 18. Sold to Scuyler Hotel for cash : 1 sack sugar. 100 lbs.. @ 8>^c 2 sacks rice. 200 lbs., (rif^. 8-^4c 1 lb. ginger @ 29c 10 bottles Chief Brand olives @ 9c 20 bottles sweet pickles @. . . 9i/^c 19. Bought of Cable Packing Co.. giving check in payment: 100 sugar cured hams. 1.150 lbs., (al 21i/^c 50 smoked shoulders. 581 lbs., (q). .' 16'Hc " 20. Sold to Scuyler Hotel for cash : 25 sugar cured hams. 284 lbs., (a 25 14c 10 smoked shoulders. 102 lbs., (a). 21c " 20. Sold to The Union Club Co. for cash : 25 sugar cured hams. 279 lbs., (a) 25 14c 9 smoked shoulders. 84 lbs., (a) 21c 10 bottles sweet pickles (a). .... 9c 20. Paid clerk's salary ^ 18.00 20. Paid delivery expenses in cash 7.75 20. Paid miscellaneous expenses 3.85 22. Sold to The Hines Restaurant Co. for cash : 10 bottles Chief Brand olives (n) 9c 25 lbs. Spring River cofifee rS; 23c 1 sack sugar. 100 lbs., @. .^.' 8^c 10 sugar cured hams, 116 lbs., (a} 25>4c 5 smoked shoulders, 48 lbs., (a) 21c " 23. Sold to Clifton Hotel Co. for cash : 1 lb. ginger @ 30c 1 lb. cloves @ 30c 2 boxes Crystal soap, 200 cakes, (a), 4^20 25 cans tomatoes @ 9c " 23. Sold to Mrs. C. E. Kingsley for cash : 10 cans tomatoes @i 10c 5 sugar cured hams. .58 lbs., (o- 25 '4c 1 smoked shoulder, 11 lbs., rr?' 21c 10 cans hominy @ 9c 24. Sold to J. Edwards for cash; 1 sack sugar. 100 lbs.. (?i) S^^c 1 sack rice, 100 lbs., @.' 914c 15 cans tomatoes (a) 9c " 25. Sold to The Union Club Co. for cash: 15 sugar cured hams, 168 lbs., (a] 2534*-' \ 20 cans hominy (a) 9c 34 26. Sold to The Bradley Hotel Co. for ca.sh : 30 sugar cured hams, 413 lbs., @ 25c 20 cans tomatoes @ 9c " 27 . Sold to The Hines Restaurant Co. for cash : 2 sacks rice, 200 lbs., @ 9>4c 1 box Crystal soap, 100 cakes, @ 4i/4c " 27. Sold to The Clifton Hotel Co. for cash : 2 boxes Crystal soap, 200 cakes, (a) 4c 20 cans hominy @ 9^c 25 smoked shoulders, 334 lbs., @ 20j/2C " 27. Paid clerk's salary 18.00 " 27. Paid deliverey expenses 3.19 27. Paid miscellaneous expenses 3.84 (Open the following accounts in the ledger, beginning at the top of page 81, allowing each account the number of lines indicated.) M. B. Sutton, capital (3) Purchases (6) Sales (28) Salaries (6) Expense (6) Delivery expense (6) Rent ' (3) Post all entries to the ledger. Take ofT trial balance and profit and loss statement and figure the per- centages called for in the preceding problems. DEFINITIONS. Inventory. A list of the goods on hand, usually stated at the cost price. Resource. Anything of value belonging to a person, firm or corporation, is a resource. Cash, accounts owing to us, and any property owned, are examples of resources. Liability. Anything owed by a person, firm, or corporation, is a liability. Accounts and notes that we owe are examples of liabilities. Net Worth. The excess of resources over liabilities is the net worth. A man has cash and other resources amounting to $5,871. His liabilities, or what he owes, are $871. The difference is $5,000, which is his net worth. Purchase and Sales on Credit. In the preceding work all of our transactions have been on a cash basis. While there are some firms that always buy and sell for cash, they are the exception, most firms buying and selling to a large degree, on credit. When the business is on a cash basis, we can keep all the necessary records in a cash book and ledger. As the following work contains purchases and sales on credit, it is necessary to have other books in which to record such transactions. The purchase book is used to Record the purchases on credit, and the sales book is used to record the sales on credit. When goods are purchased a bill is always received showing all the items, prices, total, etc. For this reason it is necessary to enter only the date, name and amount in the purchase book. When a sale is made on credit, a bill is always made out and sent to the customer, and the name, the terms, the items, prices and total should all be entered in the sales book, as this is the only record of the transaction that we have. Notice the following forms for the purchase book and the sales book. 35 Illustration. PURCHASH BOOK. 1916 July Smith Grocery Co., Erie, Pa., Bill of June 27 H. O. Herman, York, Pa., Bill of July l' Green & Co., Clyde, C, Bill of July 5, Total purchases. 400 271 28 699 SALES BOOK. July 1. 1916. \\. J. Edwards, acct. 30 days, 10 lbs. smoked ham, 15 sugar, 1 sack rice, 100 lbs.. @ 25c. @ 9c, @ Sc, 2 1 8 50 35 00 11 85 4. li. W. Wilbur, acct. 10 days, 1 sack sugar. 100 lbs., 10 bottles olives, 10 cans hominy, 5 lbs. allspice. @ 8Hc, @ 9c, @ 9c, @ 28c, 8 1 50 90 90 40 11 70 4. A. F. Ridgeway & Co., acct. 30 days, 10 sugar cured hams, 122 lbs.. Total sales, @ 25c, 30 SO 30 50 54 05 4. Instructions. (Open the purchase l)0()k on page 62.) (Open the sales book on page 63.) Write the entries for the following transactions, using the piu'chase l)ook, sales book, and cash book. All j)urchases on account will l)e entered in the purchase l)ook. All sales on account will be entered in the sales book and all cash recei])ts and ca^h payments in the cash book. Memoranda of Transactions. July 1, 1916. W. B. Sutton begins a wholesale grocery business investing cash" $4,000. July 1. Paid one month's rent in cash $ 75.00 " 2. Bought bill of goods of Burnian «.K: Co.. Toledo, ()., on account 10 days. Anit. <'f bill (enter purchase book).. 528.61 3. Bougiit bill of goods of Bentley \- Cn., Dayton, ().. .m ac- count 10 days. Amt. of bill 7()(>.80 3. Bought bill of goods from The Cable Pack nig Co., Chicago, 111., on account 20 days. Amt. of bill 368.50 4. Sold to A. C. Stillwell, .Akron. ( ).. on accl. 10 days (enter in sales book) : 2 sacks rice, 200 lbs., @ 8c 2 sacks sugar, 200 lbs., (fv 7>lc 36 1 box Crystal soap, 100 cakes. @ 2>4c 5 doz. cans corn @ 95c 5. Sold to Scuyler Hotel, Springfield, ()., un acct. 10 days : 50 lbs. Spring River coffee @ 19c 50 bottles sweet pickles @ gy^c 5 sugar cured hams, 55 lbs., @ 20c 6. Sold to The Union Club, Columbus, O., on acct. 10 days : 3 doz. bottles Chief Brand olives @ 85c 4 doz. cans peas @ 90c 2 lbs. ginger @ 25c 2 doz. bottles sweet pickles @ 90c 6. Paid clerks' salaries in cash 22.00 6. Paid miscellaneous expenses in cash 8.16 6. Paid delivery expenses by check 7.95 8. Bought bill of goods of Burman & Co. on acct. 20 days. Amount of bill 85.12 8. Sold to E. M. Pierce Co., Columbus, O., on acct 10 days: 100 lbs. Blue Label coffee @ 18c 100 smoked shoulders, ^^50 lbs., @ 16c 10 doz. cans corn @ 90c 3 sacks rice, 300 lbs., @ 7^c 8. Sold to A. C. Stillwell on acct. 10 days : 5 doz. cans corn @ 95c 20 doz. cans peas @ 90c 50 smoked shoulders. 476 lbs., (gl 16c 25 sugar cured hams. 282 lbs., @ 22c 8. Gave Burman & Co. check in payment of bill of July 2. Enter in cash payments as follows : July ! 8 Burman & Co.. Bill July 2 528 ol 9. Sold to Mrs. C. E. Kingsley, Columbus, on acct. 30 days : 5 doz. cans tomatoes @ 95c 3 lbs. cinnamon @ 25c 1 doz. Chief Brand olives @ 85c 4 smoked shoulders, 42 lbs., @ 16c 9. Sold to The Hines Restaurant Co., Columbus, O.. ' on acct. 30 days : 100 lbs Spring River coffee @ 19c 20 sugar cured hams. 240 lbs., @ 22c 10. Gave Bentley & Co. check in payment of bill of July 3 766.i 10. Sold to J. Edwards, Tiffin, O., on account 30 days : 20 sacks sugar, 2,000 lbs., @ 7c 10 sacks rice, 1,000 lbs., (a) 7>^c 11. Sold to Scuyler Hotel Co. on account 10 days: 5 sugar cured hams, 59 lbs.. @ 22c 6 doz. cans corn @ 95c 12. Sold to The Union Club on acct. 10 days : 10 sacks sugar, 1.000 lbs., @ 7c 10 doz. cans tomatoes @ 92c 1 sack rice, 100 lbs., @, 7%c 13. Receive check from the Scuyler Hotel in payment of bill of July 5, $24.75. 37 Knter in cash receipts as follows : July 13 Scuyler Hotel, Bill July 5 24 75 13. Paid clerks' salaries for week 22.00 \3>. Paid delivery expenses by check 17.12 13. Paid miscellaneous expenses 4 12 15. Received check from The Union Club in |)ay- ment of bill of July 6 " 8.45 " 15. Sold to E. M. Pierce Co. on acct. 10 days: 100 lbs. Spring River cofifee (a) ' 19c 90 lbs. Blue Label coffee (^,7[ Igi-^c 100 bottles sweet pickles @ 8c 50 sacks sugar. 5,000 lbs.. @ 714c 16. Received check from A. C. Stilhvell in payment of of bill of July 4 36.25 16. Received check from The E. M. Pierce Co. in settle- ment of bill of July 8 201.50 17. Receive check from A. C. Stillwell in part payment of bill of July 8, $100.00. Enter in cash receipts as follows : Inly 17 A. C. Stillwell, part payment Ijill July 8 100 GO j 18. Receive check from the Scuyler Hotel in pay- ment of bill of July 11 18.6S 20. Received check from The Union Club to apply on acct ' 5O.OC1 20. Paid salaries for the week 22.00 20. Paid delivery expenses 8.15 20. Paid miscellaneous expenses 3.12 20. Gave Cable Packing Co. check to apply on bill of July 3rd ' 150.00 22. Bought bill of goods of Bentley .'^r Co. on acct. 10 days 98.1? 23. Sold to Scuyler Hotel on acct. 20 days: 10 sacks sugar, 1,000 lbs., (a) G^ic 4.doz. cans tomatoes @ 85c 25. Sold to A. C. Stillwell on acct. 20 days: 5 sacks rice, 500 lbs., @ 7y4C 2 lbs. cloves @ 1 ^V 25. Receive check from A. C. Stillwell for balance of bill of July 8 60.".=. 26. Receive check from Union Club for l)alaiice ot bill of July 12 36.45 27. Receive check from E. M. Pierce Co. in payment of bill of July 15 406.15 27. Receive check from Mrs. C. E. Kingsley in payment of bill of July 9 ■ '. 13.07 27. Paid clerks' salaries 22.00 27. Paid delivery expenses 9.12 27. Gave Burman Si Co. check in p.iynu'ut of bill of July 8 85.12 30. Gave Bentley cl: Co. check in paynunt of bill of July 22 98.12 38 INSTRUCTIONS FOR POSTING. Balance and rule the cash book. JDringing the cash balance down below the ruling. Foot and rule the purchase book and sales book as shown in the illustrations preceding and put the footings down in ink. (Open the following accounts in the ledger, allowing each account the number of lines indicated. Enter them in the exact order given.) W. B. Sutton, capital 3 Purchases 4 Sales 4 Salaries 6 Delivery expense 6 Expense 6 Rent 3 Burman & Co 3 Bentley & Co 3 Cable Packing Co 3 A. C. Stillwell 5 Scuyler Hotel 3 The Union Club 4 E. M. Pierce Co 4 Mrs. C. E. Kingsley 3 Hines Restaurant Co 3 J. Edwards 3 From the purchase book post the amount of each separate purchase to the right-hand side of the account. The first item posted will be 528.61 to the right-hand side of Burman & Co.'s account, being sure to put the date and the page of the purchase book in the ledger, and also the initials P. B. (purchase book) just before the page column in the ledger. The initials P. B. show what book the item is posted from. In the ledger folio column in the purchase book, put the page of the ledger to which it is posted. Post the other purchases to the same side of their accounts in the same manner. Next post the footing of the purchase book to the left-hand side of the purchase account in the ledger, being sure to date, page, and initial it as with the items just posted. You will notice that the items posted to the right-hand side of the ledger will just equal in amount the item posted to the left-hand side; therefore the posting from this book is in balance. Next post the entries in the sales book to the left-hand side of the accounts in the ledger. The f^rst item will be 36.25 to A. C. Stillwell's account. Put the date, page and. initials S. B. (sales book) in the ledger and put the page of the account in the ledger in the folio column in sales book. After all the entries are posted, post the footing to the right-hand side of the sales account in the ledger, dating, paging and initialing it properly. You will notice that the items posted to the left-hand side of the ledger will just equal in amount the total posted to the right-hand side of sales account. Therefore the posting from the sales book is in balance. Now post the entries in the cash receipts and cash payments as you have done before. If your work is correct, the accounts with Burman & Co., Bentley & Co.. Union Club, E. M. Pierce Co., and Mrs. C. E. Kingsley will be in balance, i. e., the two sides will add alike on each account. This is as it should be, as these accounts have been paid in full. Proceed to take ofif a trial balance, putting in all tlie accounts that are not in balance. With the Cable Packing Co.'s account (put the difference be- tween the two sides in the right-hand column of the trial balance. 39 (Note to Teacher.) After the work has been completecl iij) to this point, a careful study should be made of the w(Trk to show why the trial balance is in balance. DOUBLE ENTRY BOOKKEEPING. As the name implies, all transactions in doul)lc entry bookkeeping are entered twice. A brief survey of the foregoing work will show this to be true. The cash book, while a book of original entry, is in itself an account with cash showing the cash received, cash paid, and the balance, the same a? the various accounts in the ledger show their respective balances. The two sides of the accounts are known in double entry as Debit (Dr.) and Credit (Cr.). The cash receipts is known as the cash Dr. and the cash payments as the cash Cr. The left-hand side of the ledger is known as the Dr. side and the right-hand side as the Cr. side. All cash received is entered under cash as Dr. and then posted to the credit side of various accounts in the ledger. Therefore each transaction has been debited to cash and credited to some other account. All cash paid out has been entered under cash Cr. and then posted to the debit side of various accounts in the ledger; therefore each transaction has been credited to cash and debited to some other account. From the purchase book we post each entry to the credit side of the account with the firm of whom purchased, and at the end of the month we post the total of all the entries to the debit side of purchases account. There- fore each entry has l^een debited to purchases and credited to the proper firm account. From the sales book we post each entry to the debit side of the account with the firm to whom sold, and at the end of the m.onth we post the total of all these entries to the credit side of sales account. Therefore each entry I has been debited to the proper firm account and credited to sales account. I JOURNALIZING. • Journalizing is the j-)rocess of fletermining what accounts should be debited and credited for the various transactions. From the foregoing we arrive at the following simple rules for jour- ; nalizing: / When cash comes in — debit cash and credit the account for which the / cash is received. When cash is paid out — debit the account for which it is paid and credit cash. When goods are purchased on account, debit purchases and credit the account of the person or firm of whom purchased. When goods are sold on account, debit the account of the person or firm to whom sold and credit sales. From these rules we see that we credit the acccnnits of people when we buy of them, and debit their accounts when we pay them ; and that we debit the accounts of people to whom we sell and credit their accounts when they pay us. Therefore all debit balances to such accounts represents amounts owed to us and all credit balances, amounts ^ve owe to others. (Note to Teacher.) It would be well to take up the different accounts in the trial balance and quiz the class as to their meaning. A thorough understanding of the accounts is essential before jnoceeding. 40 Instructions. The inventory of goods July 31 i.s $861. .^0. This, of course, represents goods purchased during the month that have not yet been sold. An inspec- tion of the accounts in your trial balance should show the following : Resources — Cash, Inventory July 31, A. C. Stillwell, Scuyler Hotel, Hines Restaurant Co., J. Edwards, .luly (net 31), wor th July 1), $3i!l06.86 861.50 36.63 .68.40 71.80 215.00 Total resources. Liabilities — Cable Packing Co., $4360.19 218.50 Net resources (net worth Deduct— W. B. Sutton, Capital acct. 4141.69 4000.00 Increase in net worth. 141.69 From this we see that W. B. Sutton's net worth has increased 141.69. therefore his profit is just this amount. Make out a profit and loss statement, using the following form. If your work is correct, your net profit should be 141.69. PROFIT AND LOSS STATEMENT, July 1 to July 31, 1916. Sales for the month. Deduct— Purchase for the month. Less Inventory July 31, 1916. -.. Cost of goods sold, . . , Gross profit. Expenses — Salaries, Delivery expenses. Miscellaneous expense, Rent, Total expenses. Net profit for the month, THE JOURNAL. The journal is a book of original entry usually arranged with tvvo columns, Dr. and Cr. on the right-hand side. The journal is used for certain opening entries, for closing entries, and such other entries as do not belong in any other books of original entry. All purchases and sales on account might be put in the journal and in that case they would take the form as shown in the following illustration. In the journal both the debit and credit accounts are written for each tran.s- action. This makes more work in writing the original entry and more work in posting, as the debit and credit for each transaction must be posted separately. The only entry we will put in the journal is the closing entry. 41 Illustration. L.F. Dr. Cr. Dr. Cr. Jan. 5. 1916. Purchase^. James Smith, Billot Jan. 2, 120 50 120 50 Purchases. Wm. Orton, 7. Bill of Dec. 31, 58 90 58 90 O. C. Hunt. Sales, 8. On acct. 10 days, 26 50 26 50 10 sacks flour, 5 lbs. cinnamon. @ 2.50 25.00 @ .30 1.50 CLOSING THE LEDGER. The ledger is generally closed at the end of every year or every six months. It may be closed oftener if desired. The time during which the books are allowed to run without clo.^ing is known as the fiscal period. An inventory is taken at the close of such period without which the books cannot be closed or the net profit figured accurately. After the ledger is closed, only the resource and liability accounts and the proprietor's capital account will remain open. Make the following entry in the journal on page 66 and post it to the ledger; open inventory account on page 85: July 31, 1916. Sales to close. 1348 08 Inventory, July 3|, 861 50 Purchases to close, 1847 15 Salaries to close, 88 00 Delivery expense to close. 42 34 Miscellaneous expense to close, 15 40 Rent to close, 75 00 W. B. Sutton, capital, net profit. 141 (.9 Vou will now rule the accounts in the ledger. Rule all the accounts with persons or firms by drawing a single line under the balancing items on each side as shown in the following illustration. Illustration. S. C. SMITH & CO. 1916 July 1 12 18 S.B. 1 850 25 1916 July 10 ,20 23 1 C.I 2 C, 3 C. 4 850 25 S.B. S.B. 1 327 60 227 100 00 00 154 00 42 Rule purchases, sales, salaries, delivery expense, expense and rent accounts, as shown in the following illustration. Illustration. PURCHASES. 1916 July H P.B. ■1 1857 02 1916 July 31 To close J .i 1857 02 1 1 SALES. 1916 July ,^i. To close J. 1 1 2168 15 1916 _J_uly_ 11 S.B. 4 2168 15 1 1 SALARIES. 1916 July 10 17 24 c. C. C. 8 28 ' 00 28 00 28 j 00 1916 July 31 To close J 1 84 00 84 00 84 00 1 I 1 DELIVERY EXPE] VSE. 1916 July 10 24 30 31 C. C. C. C i 9 10 21 6 1 1 12! 12 19 12 1 j 1916 July 1 31 To close 1 j J-l-l i 29 55 1 ^29_ 55 29 55. 1 ^ 1 EXPENSE. 1916 July 2 4 16 l C.l 2 C. ' 2 C 4 1 12 1 ' 80 16 01 1916 July 31 To close J 1 16 97 16 97 j 16 97 t 1 RENT. 1916 July J_ 1 1 C 1 2 1 1 50 1 00 1916 31 1 To close .j-h 50 00 1 r r 1 43 Form in •keeping' household account;^ 1916 Jan. 1 1 1 1 2 2 2 2 Allowance for month. Groceries. Meats. Soap, Groceries. Meats. Sugar. Milk. ; 1 65 00 75 25 25 50 30 25 10 2 Coal, 2 25 " 3 Groceries. 60 " 3 Broom, 15 " 3 Meats, 50 " 3 Gasoline, 50 " 4 Groceries. 40 " 4 Meats, 37 " 4 Milk, 10 " 5 " 6 " 7 " 8 " 9 " 10 Etc. Balance, -10 22 65 00 65 00 Feb. 1 Balance, 10 22 " 1 Monthly allowance, 65 00 44 46 47 48 49 50 51 52 53 54 55 56 57 58 ,59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 I I 78 79 81 82 83 84 ^ 86 THIS BOOK IS BUE ON THE,, STAMPED BEL^^T DATE JNTERUBRARYLOAN ^^ 2l~100m-8.'34 VD 05849 UNIVERSITY OF CALIFORNIA LIBRARY P.i^