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UJ X Ul »- < Ul z < 1 ^ O o UJ _i < ac -i CO < X CO CO X o (O CO o CO ^ CD :x: K- z u. ^ -I z UJ O 2 o > _i hu 3 _ X < < < < UJ X UJ o < < X < tr €C X § Ul o < o o Z CO » » H- CD CO en z o o 2 CO » o CL o S CO 3 CD »— o q: < < < < ^ o cc i flQ i-« ^ T<< f* t4 fH ■M CJ CM «4 'H «>l o 1-t •»^ 1-1 «4 o X «4 «4 t- a f i» it it jt V* a ^ ^ si ^ si tt Si a §2&&S 58 o S g GO U. v4 *4 2 CM CL CM <7\ Elliott-Fisher The Bookkeeping Machine 35 22 — Heading Up Accounts for the New Ledger A separate ledger sheet and statement must be headed up for each customer showing name, address and amount as per proven balance sheet provided. Ledger sheets and statements should be arranged alpha- betically by name of customer; they are usually kept in a standard (loose leaf) two-post binder, the statement in front of the ledger sheet. 23— The Proof Sheet (See illustration opposite) This vitally important record is written at the same time the ledger and bill are written. It is a continuous, alphabetical, chronological and permanent record of all postings made by the day or run. The proof sheet furnishes a complete daily record of sales, of cash payments, and of merchandise returns. Iden- tification of individual accounts is secured by writing the name of the customer on the margin of the ledger sheet, which car- bonizes through on the proof sheet, instantly showing up any posting to the wrong account and providing a convenient way of checking items posted in case of errors. The proof sheet can be made a Daily Sales Journal, a subsidiary Cash Book, Mer- chandise Returns Journal, or an Auditor's Proof Sheet. This provides effective control over all entries to the ledger. Experience has shown that without the proof sheet, the bookkeeper at the end of the month, with a machine posted ledger out of balance, is in identically the same position as if the ledger had been posted by hand — and must do just what the hand bookkeeper does, check through the ledger. With the proof sheet any error which may show up at the end of the month can be quickly located and corrected. (See also Sec- tions 86, 95, 97, 98, 106, 107, 108, 109, 110, and pages 34, 95, 103, 104 and 105.) 24 — Combining Bill or Statement and Ledger The modern method of Bookkeeping by Machinery in retail business is to combine the monthly bill or statement with the ledger of The Bookkeeping Machine at one operation, making ^■t the ledger an exact duplicate of the bill. The bills are always 36 Bookkeeping by Machinery ready for the mail and can go out promptly at the first of the month. The form rulings of the bills match exactly with the rulings of the Ledger Sheet and it is an easy matter to collate them (register one with the other) on the flat platen of Elliott- Fisher and write both at one time. (See Section 85.) 25— Ledger Without Statement Posting the ledger and statement at one operation as de- scribed in the preceding paragraph is the only efficient method of bookkeeping by machinery where statements are required. There are, however, a few lines of business in which state- ments are not rendered except for items which are past due. In such cases the statement can not always be combined with the posting of the ledger. Ledger posting upon Elliott-Fisher without statement re- tains all the distinct advantages of daily balance, proof of posting, control, etc. (See Section 1.) The value of the proof sheet on this class of work is just as important. Ledger posting without the proof sheet is not bookkeeping by machinery because at the end of the month the bookkeeper with a machine posted ledger without a proof sheet is no better off than the bookkeeper who has kept his books by hand. The Proof Sheet is the indispensable factor in Bookkeeping by Machinery. (See Section 23.) 26 — Daily Balance of Accounts Under the old hand method of bookkeeping the debits and credits of each account have to be added up separately at the end of the month, the total credits subtracted from the total debits and the balance extended in the balance column. This means a great deal of extra work for the bookkeeper at the end of the month. He has to check back and hunt for mistakes in order to balance the accounts and get the correct "trial" balance. Bookkeeping by Machinery with Elliott-Fisher balances each account as it is affected by posting, thus creating a daily balance on all accounts and providing a continuous balance of the work. Elliott- Fisher The Bookkeeping Machine 37 PROOF OF BRINGING DOWN THE OLD BALANCE 27 — (a) Pre-determined Adding Machine Total Mechanical things cannot be made to see. It is obvious, therefore, that some proof is necessary to show that the opera- tor has brought down the Old Balance correctly. Positive mechanical proof is secured when The Book- keeping Machine operator or some other clerk takes off a pre-determined adding machine total of Old Balances which are to be affected by posting, as are indicated by the "stuffed" tickets. (See Section 19.) After the operator has completed the posting, the Old Balance Column register will show a total which will agree with the pre-determined adding machine total of the Old Balances, provided no mistake has been made. It will not agree if any error has been made in bringing down the Old Balance. This operation of proving that the Old Balance has been brought down correctly is done with a listing machine at a separate operation and usually by another clerk. It is positive proof of accuracy when the work has been done correctly. When a mistake shows up it is an easy matter to take the list of figures and check against the Old Balance column figures on the proof sheet and quickly locate »the error. Securing the pre-determined list of Old Balances will not consume more than from ten to fifteen minutes of time daily for each operator. The majority of business institutions furnish The Book- keeping Machine operator with a pre-determined adding ma- chine total of Debits or Credits to be posted in order that the operator will have some definite figure to prove against. A pre-determined total of Debits and Credits to be posted is a positive method of proving that the operator posts all the Debits and Credits to the Ledger. A pre-determined total of the Old Balances of accounts to be affected will furnish identically the same kind of proof that the operator brings down all of the Old Balances correctly. (b) Extra Column Register An extra column register provides a mechanical method of checking bringing down the Old Balance, 38 Bookkeeping by Machinery An extra column register is placed to the right of the Balance column. The Old Balance is printed the second time on the Proof Sheet and again accumulates the total of Old Balances for the day or run. In case an error is made when the Old Balance is brought down and printed in the Old Balance column the first time, it is assumed that the same error will not be made when printing the Old Balance the second time on the Proof Sheet. The two Old Balance registers must agree at all times; if they agree at the end of the run it is assumed that all the Old Balances were brought down cor- rectly; if they do not agree, the Proof Sheet furnishes a con- venient means for locating the error. This mechanical method of checking the Old Balance is a trifle faster than securing the pre-determined adding machine total of Old Balances. The disadvantage of using this form of mechanical check against bringing down the Old Balance incorrectly, is that in ordinary operation as soon as we have written the New Balance in the Balance Column, we follow immediately with the name of the customer, which is written on the margin of the ledger sheet and proof sheet as explained in Section 86. When this is done there isn't always enough room to place the extra column register to the right. This method of checking that the Old Balance has been brought down correctly is also bad where there is any distribution to be made immediately to the right of the Balance column, whether on the ledger sheet or on the proof sheet only. This plan of having two registers and writing the Old Balance twice where the nature of the work and width of forms are such that it can be employed is fairly satisfactory, but it cannot be used in other cases where there isn't sufficient width of forms or when such a register would interfere with handling of other figures immediately to the right of balance column. When using this form of mechanical check the operator must always pick up the Old Balance from the Balance column — never from the Old Balance column. Under no condition or circumstance should the operator attempt to check bringing the old balance down correctly, visually or mentally, as there can be no definite proof or check either way and annoying errors may result. Elliott-Fisher The Bookkeeping Machine 39 28--Posting Debits and Credits at Separate Runs We have indicated a register for the Debit column and a register for the Credit column, but the Merchandise Debits, Merchandise Credits, and Cash Credits are ordinarily posted at separate runs. 29— Caution When posting Debits at a separate operation remove the tab stop placed on the tabulator bar over Credits column — this will prevent posting a Debit in the Credit column. When posting Credits at a separate operation remove the tab stop placed on the tabulator bar over the Debit colunm — this will prevent posting a Credit in the Debit column. Separate register total of debits and separate register total of credits must be proven with debit and credit control totals before any further work is done. 30— Posting Debits and Credits at One Run Some firms post debits and credits at one run, but debits at one run and credits at another run is the usual practice. 40 Bookkeeping by Machinery S S m 1 5 g 5 i 2 £ e s § «o O It tt «tt« « « ^ S^SS SS;? £5i8 8 ggo §^S;! 2iS2 GSR Si 3^gg 58S aSR !£RR R g fx >• « O « S g S S S8 S ° iB S S2! S ^ S Si § s @s ^ $ $ S « 2| 5 S 2 2 Sf s s s? s s 3 s ;; 9.9, S 5 G R 8« «> 5 • S RR fs II I -> « tt CD - CR s $ pp I to ^ ^ Elliott-Fisher The Bookkeeping Machine 43 Chapter IV CONTROL 31 — Control is the directing influence which governs, regulates or manages. It is the hand on the throttle of the mighty locomotive that sets into action and regulates the power that pulls the modern railway train a mile a minute across the country, or slows it down to a snail's pace in the station and stops the tons of iron and steel exactly at the desired place. Take away the control while the massive engine rests in the roundhouse and it would remain there forever. Take away the control while the monster machine is speeding along at sixty miles an hour and it would rush on destroying everything in its path until it accomplished its own destruction. Mechanical things and human beings must be properly controlled to secure satisfactory results. There are some mechanical things so well constructed that but little control is necessary, while others require constant supervision. It is the same way with the human element. Some employees are so well balanced that they need but little direction or control ; they are able to manage themselves. There are others who can accomplish little or nothing without proper guidance or control. Control is the vital thing, the master key of successful organizations. Without proper control there can be no effi- cient results. The Bookkeeping Machine under proper con- trol produces wonderful results. When operated haphazardly it produces unsatisfactory results. The Bookkeeping Machine may be properly operated, may do all it can reasonably be expected to do, and yet the account- ing control may be inefficient. Sometimes The Bookkeeping Machine is blamed for poor results because the general control is bad. 32— Detail of Control For those who are not thoroughly familiar with accounting control, we outline herewith as an example the methods of a retail or department store. 44 Bookkeeping by Machinery When the sales clerk makes a sale, whether cash, C. O. D., or charge, a sales slip or ticket is made out, usually in tripli- cate. This sales slip itemizes the sale. One copy is usually a tissue and remains in the sales clerk's book; two copies are sent up "the tube," or over the "cash carrier" or by "cash boy" to the cashier. If it is a cash sale, one slip is kept by the Cashier, the other is stamped "Paid" and returned to the sales clerk to be handed to the customer with the goods. If it is a charge sale, one copy is stamped "O. K." and returned by the credit office to the sales clerk when the goods are to be carried away by the customer. If the goods are to be delivered, then the duplicate slip goes with the goods to the delivery department, a copy being kept by the cashier if it is a cash sale, or kept at the approving desk if it is a C. O. D. sale. If a charge sale, the copy goes to the bookkeeping department direct or through the auditing department. At the time the sales clerk makes out the sales slip, the total amount of the sale is recorded by the sales clerk on the index in the back of the sales book. At the end of the day the sales clerk totals her sales for the day, thus ascertaining the cash, charge and C. O. D. sales. These index totals are taken by a clerk from the audit office, or sometimes the sales books are exchanged with the sales clerk at the end of each day, and a clerk in the audit office totals the index of all sales books. By adding all the sales book index totals of a department, the total sales for that particular department is ascertained. By adding all department totals, the total sales for the whole store is ascertained, provided that the sales clerks put down all their totals on the indexes correctly and all additions have been accurately made. When the cashiers and the approval desk clerks turn in all the duplicate sales slips for the day, if no mistakes have been made and no slips have been lost, the total must equal the store total of sales book indexes. Then all the day's sales have been audited by departments, sales have been accounted for and the cashier has turned over as much cash as all the cash slips call for. All sales slips are numbered and must be accounted for. Thus control over the figures of the whole sales force and the cashier's receipts has been secured. It seldom happens that the audit can be balanced by store Elliott-Fisher The Bookkeeping Machine 45 totals if there are many sales slips handled. Salespeople make mistakes, forget to write down on the index the amount of some sale, or write down the wrong amount, and sales slips are often- times lost or misplaced. Then the duplicate sales slips are sorted by departments and checked against each department's total of sales book indexes. The departments that are out of balance are thus ascertained and then sales slips are further sorted by clerks and totaled. That total is checked against the index totals until the sales books are found which are out of balance. Then the sales slips belonging to a certain book are checked one by one against the index of that book until the mistake or missing slip is located. All departments having thus been audited the charge slips are ready to send to the Bookkeeping and Billing Department. In this way, the total amount of all the charge tickets for the day is known and controlled. The Auditing Department sorts the tickets by ledger divisions and secures ledger division control totals, or after the charge slips reach the Billing and Bookkeeping Department they are sorted into ledger divisions. After they are so sorted the total of tickets in each ledger division is ascertained. If the grand total of all these ledger division totals of sales tickets equals the pre-determined total of the charge sales tickets for the day, then all the charge tickets have been distributed to the ledgers. The total of charges which must be posted and billed to each ledger has been ascertained. This gives the total of charges that are to be posted to each ledger division. In a similar manner is found the total of merchandise returns or credits, cash credits (journal entries or transfers) to be posted to the different ledger divisions. 33— Master Control The Master Control Sheet on page 46 illustrates the method of recording the grand totals of each day's work, against which all letter controls must prove. If there is any need of registers to total what the Book- keeping Machine posts, if there is any need of proof sheets for checking or other record purposes, there is just as much need for this or some similar form of recording the figures for control purposes. 46 Bookkeeping by Machinery jiOHTH or ,P^M^< .^. ? »" .r. — 1 /y «^. ^^ - - - - i - 1 " 1 v^/«j/y iL ((, x^L VJ. >i So '7.f«r, \- SI Jv 'TU s//s>i -jf > peo 11 J^ f7 t^S tf^ >1 SlO^f ^ s k>y^ it-as /r .i -v jriu-o •4 ^^v >-A ^r> >/^w H ^ /(i fiir l'>J f(( ^^ ( fif^,' ro If 3 ,rc •v^oJ- 1^1 1 n ^; 7? 3v ri ^ ' « i 10 11 12' r** U ■ 6 10 ■ It 19 X — V2 2.-! 'M S5 3< ^ 2« 2t 3« 31 u Master Control With the right kind of control satisfactory results can be secured under ordinary conditions. The Bookkeeping Machine operator must balance each day's work with the Control Clerk's figures before proceeding with other work. Today's work is done today so as to be prepared for tomorrow's work when tomorrow comes; then books are always in balance; then there are no mistakes to hunt for at the end of the month. 34— Letter Control For illustration : Suppose an ordinary Accounts Receivable Department of a department or retail store. Let us assume that there are 26 ledger sections; one ledger section for each letter of the alphabet and each ledger section in turn sub- divided into 6 binders. Then there is a total of 156 binders Elliott-Fisher The Bookkeeping Machine 47 Ledger - Section Control 2. 3. 4. 5. Binder Control Binder Control Binder Control Binder Control Etc. Ledger Section Control Accounts Receivable Ledger Control C Ledger Section Control D Etc. Outline of Accounts Receivable Ledger Control by Sections and Binder Divisions which can be varied to suit the number of accounts to be cared for and 26 ledger sections of the Accounts Receivable ledger. For simplicity of description, assume that there are 26 Billing- Bookkeeping Machine operators, one for each letter in the alphabet, which makes one for each ledger section. Suppose all the operators are at their machines, with their six binders each in a convenient place and all their books balanced up-to-date. Suppose a messenger comes along and lays a package of charge tickets representing yesterday's sales on each operator's desk. These charge tickets are to be posted to the different ledger sections ; they have already been arranged alphabetically for each bookkeeper and her particular section of the ledger. If these charge tickets have already been totaled, then some one has what is known as a pre-determined total of the amount of each bundle of charge tickets. Before the bookkeeper starts to post the tickets it is definitely known how much she is to post — that is a pre-determined total. Suppose the method of auditing is such that the tickets have not been totaled, then, of course, no one knows the 48 Bookkeeping by Machinery amount of charge tickets in each bundle. The store routine may be such that immediately after the bookkeeper is through posting these tickets, another set of clerks will take the same tickets and get a total of the tickets at a separate and distinct operation — that is an after-determined total. Possibly in some other institution there may be no pro- vision made for a total of the bundle of charge tickets laid on each operator's desk either before or after posting. In such case, the operator, or an assistant in the Bookkeeping Department, would list the tickets on an adding machine in order to secure a total of the bundle of charge tickets referred to. This before or after-determined total of the bundle of charge tickets, whether it is secured by some one in the Book- keeping Department or some one outside, is the controlling figure against which the Bookkeeping Machine operator works and it doesn't make any difference whether the total is pre- determined or after-determined. The Bookkeeping Machine will check the figures made before or after equally well. It is generally customary and considered the better practice that the total be taken before posting — that is why it is referred to as a pre-determined total. 35— Binder Control Now assume that the bundle of charge tickets placed on the "A" bookkeeper's desk contains items amounting to $3,090.27. The "A" bookkeeper proceeds to post these charge tickets, and when she gets through, the register over the charge or debit column shows that she has posted $3,090.27, if she has done her work correctly. This checks with her pre-determined total. But the bookkeeper doesn't always balance to the cent. Sometimes she misses a ticket; sometimes she misses an item on a ticket; sometimes the Auditing Department which fur- nishes the pre-determined or after-determined total makes a mistake, and then the search for the mistake begins. Sometimes on account of inefficient methods of control, it takes longer to find the mistakes in the control than it does to find the mistakes in posting. Returning to the bundle of charge tickets amounting to $3,090.27, it must be remembered that these tickets are to Elliott-Fisher The Bookkeeping Machine 49 be posted into six different binders of the "A" ledger section. The operator might post five of the six binders correctly, but make a mistake in the sixth. In order to segregate mistakes and shorten the hunt for them, the Bookkeeping Machine operator or some one else usually takes off an adding machine total of the tickets that are to be posted into each binder. Suppose that $691.34 worth of tickets out of the $3,090.27 bundle are to be posted to the second binder of the "A" ledger section. The operator makes the necessary posting and does the work correctly, then she takes an ordinary ledger sheet for her control sheet and starts off with a balance of $13,763.20. (See illustration of binder control sheet in Section 36.) She brings forward the old balance as in ordinary posting, inserts the date, January 2d; the item is Merchandise Sales; she records the amount, $691,34, in the debit column; the machine computes and gives her the new balance of $14,454.54, which she records in the balance column. Having performed this operation with reference to each sec- tion of her "A" ledger, she then has six totals, the $691.34 referred to and illustrated herewith, and the totals of the five other binders. She adds them all together and then makes a summary control sheet for the whole six binders. On the sum- mary control sheet will appear Merchandise Sales $3,090.27 for January 2d. Later on should any possible question come up about what the operator did on January 2d, she refers to these control 36 — (a) Control for Second Binder of "A" Ledger Section Old Bal. Date Detail Dr. Cr. Balance Jan. 1, 1918 Balance Forward 13,763.20 13,763.20 Jan. 2, 1918 Mdse. Sales 691.34 14,454.54 14,454.54 Jan. 2, 1918 Mdse. Returned 87.10 14,367.44 14,367.44 Jan. 2, 1918 Cash 502.25 13,865.19 13,865.19 Jan. 2, 1918 J. T. 1953, to C. R. Aiken (A) from C. R. Hiken (H) 2.98 13,868.17 13,868.17 Jan. 2, 1918 C. O. D. Rel. 2784, to S. M. Adams 145 Sheridan Ave. 10.00 13,878.17 pages in each binder and to the summary control sheet of all binders in her ledger, to verify or prove her work against the work of some other department or the general ledger. 50 Bookkeeping by Machinery Perhaps the $691.34 posted in the second section of the "A" ledger may be questioned. Then the Bookkeeping Machine operator gets out her proof sheets for January 2d, "A" ledger, second binder, which provides the detail that made up the $691.34 and proves that her figures are correct or otherwise. Thus we see that the proof sheet furnishes the minute detailed information of exactly what made up the total of $691.34. The control sheets of the different ledger binders furnish information as to what made up the grand total of $3,090.27 on the summary control sheet for the "A" ledger section. In a similar way, bundles of merchandise credits or return tickets would be handled, except that they are posted in the nj\ Letter Control for ^ All Binders in "A" Ledger Section Old Bal. Date Detail Dr. Cr. Balance Tan. 1, 1918 Balance Forward 48,252.17 48,252.17 Jan. 2, 1918 Mdse. Sales 3,090.27 Mdse. Returned 872.65 Cash 2,357.86 48,111.93 This Summary or Total of all Binder Controls in the "A " Section shows the figures which the ''A" Bookkeeper furnishes to the Control Clerk credit column; likewise cash payments or credits. The en tries should be made on the control sheet, as shown in the illustrations on pages 49 and 50. The handling of merchan- dise sales, merchandise credits and cash credits on the control sheet is correspondingly simple. 37 — Journal Transfers Note that the fourth item on January 2d is J.T. (Journal Transfer) 1953 to C. R. Aiken of the "A" ledger, from C. R. Hiken of the "H" ledger, $2.98. This is Journal Transfer No. 1953. Note how this journal transfer is made up and then separated so that the debit and credit can be entered in their proper places. In this particular case, the debit goes to the "A" ledger and the credit to the " H " ledger. When the Audit- ing Department assorted the bundles of tickets previously referred to, they misread a $2.98 charge ticket belonging to C. R. Aiken, 17 Spring street, as C. R. Hiken, 17 Spring street. In consequence, this $2.98 ticket was sent to the "H" book- keeper instead of the "A" bookkeeper, and the pre-determined Elliott-Fisher The Bookkeeping Machine 51 total of the items for the "H" bookkeeper is $2.98 too much, while the pre-determined total of the charge tickets for the "A" bookkeeper is $2.98 short. When the bookkeepers start to post or "stuff" the ledger, the "H" bookkeeper discovers that there is no such name as C. R. Hiken in her ledger. She investigates and finds that the ticket rightfully belongs over in the "A" ledger — so she transfers it with Journal Transfer OESI r V-Zl-^l-Vt-4^A/^^ 0*T* ^/iX^/l^ ■ CI a 7p r..j.^ CRCOIT a. 12 -7^x„. » K >. K. -IT ff or UL /7 --^e^.t,.U-o ^. DATE 1 NO. .y... V AMOUNT 1 if/6 A.¥JL / .d^/L^Ji ^ ff 1953 1 1 ld53 "■ Y 1953 1 No. 1953, which was made out as indicated by the illustration. She keeps the credit portion and sends the debit portion to the "A" ledger bookkeeper. Of course, if the "H" book- keeper credits her books with the $2.98 she reduces her total of merchandise sales that much; if the "A" bookkeeper adds $2.98 to that which the Sorting Desk has supplied her, then she has debited and increased her amount by so much. The debit portion of this journal transfer is shown recorded on the sample binder control sheet (see Section 36a). The other, or credit side of the entry, would appear on the control sheet of the "H" ledger, which is not illustrated. When the "H" bookkeeper makes out Journal Transfer No. 1953, she attaches the $2.98 charge ticket to the debit portion when she sends it over to the "A" bookkeeper. As soon as the "A" bookkeeper posts the journal debit of $2.98 to her control sheet, she O. K.'s the journal transfer to show that she has made the journal posting to her control sheet. Then she 52 Bookkeeping by Machinery sends the journal transfer on to the general control of all sec- tions, or perhaps back to the Sorting Desk, or to the General Ledger, depending on how the store routine operates. When the " H " bookkeeper posts her credit portion of Journal Trans- fer No. 1953, she O. K.'S and sends it through in a similar way. Triplicate copy of the above is left in the book for checking purposes in case of necessity. 38— C. O. D. Control Sometimes goods are sent out C. O. D. but are released and charged to the customer. The C. O. D. Department of the store is charged with the C. O. D.'s they have sent out, and if a C. O. D. is released, the C. O. D. Department has to have something to release them from the obligation because of the change from C. O. D. to charge account. This is known as a C. O. D. release which credits the C. O. D. Department and charges the Bookkeeping Department. The result is an entry like the last one shown on the control (see Section 36a). If these were the only transactions in the second binder of the ledger, the $691.34 pre-determined total of charge tickets for the "A" ledger in the Auditing or General Bookkeeping Department would be increased by $2.98 journal transfer, and a $10.00 C. O. D. release. The control sheet in each binder provides a record of what went into the ledger or what was taken out of it. In other words, it states plainly why the balance of Accounts Receivable in the second binder of the "A" ledger changed from $13,763.20 on the first day of the month to $13,878.17 the end of the second day of January, 1918. Should there ever be any question as to the sefigures, then the record (proof sheet) can easily be referred to for explanation. On the other hand, suppose no proof sheet had been made of the entry; or no control sheet had been made of the totals of the proof sheet; or no journal transfers had been made, but otherwise all of the work had been done exactly as de- scribed above, how could the bookkeeper go back and prove anything except by checking over the whole month's work? Control is the vital thing, and with the right kind of control there are satisfactory results under ordinary conditions. With- out control, there is nothing but haphazard results and un- certainty. Elliott- Fisher The Bookkeeping Machine 55 Chapter V THE MACHINE AND ITS OPERATION 39 — Individual Registers Having covered the general principles of accounting control, and the preparation of the ledger and posting medium, we now consider the specific application and operation of the machine itself. Adding registers placed over certain columns furnish me- chanical proof of the operator's work. The proof sheet furnishes written and permanent evidence of the correctness of all posting. For the relative location of these adding registers and de- scription of the figures printed in these columns, see illustration of the machine (Page 54), colored illustration of ledger sheet (Page 116) and Sections 40-46. 40— Old Balance Register A standard size T7D Register with 7 adding wheels and a capacity of 99999 99 is used over the "Old Balance" column, to automatically accumulate the total of old balances of accounts affected by posting as they are printed simultaneously in this column on the bill or statement, ledger and proof sheet for the day or run. At the end of the day or run of work this register shows the total of all Old Balances of accounts which have been affected by posting. The amount shown in this register is printed as a sub-total on each proof sheet under the Old Balance column. The total as shown on the proof sheet at the end of the run of work is proved against the predetermined total of Old Balances. 41 — Items Register A standard size T5D Register with 5 adding wheels and a capacity of 999 99 is used over the "Items" column to ac- cumulate the total of items copied from the sales ticket (or tickets if there be more than one posted to one account) as they are posted to the bill or statement and ledger. After printing the items see that the total in the "Items" register 56 Bookkeeping by Machinery agrees with the total of the sales ticket (or several tickets as the case may be) before extending it in the Debit or charge column. If these two totals do not agree then either some item has been copied incorrectly or the ticket was wrongly added. If these two sets of figures agree, then print the total shown in the Items Register in the Debit Column. Check the printed figures with the same figures in the Items Register, and if they agree, clear the Items Register. The Items Register is used only for the purpose of proving the correct addition on one or more tickets posted to the same account. If there is only one item on one ticket to be posted to an account, disregard the "Items" column and post the item directly in the Debit column. The Items register must always be cleared before posting to the next account. This is the only register cleared after every entry, all other registers accumulate the postings to furnish run or day totals. 42— Debit Register A standard size T7D Register with 7 adding wheels and a capacity of 99999 99 is used over the Debit Column to accumulate the total of all debits to all accounts as they are printed in this column on the bill or statement and ledger. This register is not cleared until the debit postings have all been made for the day or run. The total of Debits shown in this register is printed as a sub-total in the Debit column on the bottom of each proof sheet. The figures must be carefully copied out of the register. 43— Credit Register A standard size T7D Register with 7 adding wheels and a capacity of 99999 99 is used over the credit column to ac- cumulate the total credits for the day or run (whether merchan- dise returns or cash payments). This register is not cleared until the credit postings have all been made for the day or run. The total of credits shown in this register is printed as a sub-total in the Credit Column on the bottom of each proof sheet. Copy the figures carefully out of the register. Elliott-Fisher The Bookkeeping Machine 57 44 — Balance Register A standard size T7D register with 7 adding wheels and a capacity of 99999 99 is used over the Balance column to accumulate the New Balances of accounts affected by posting as they are printed in this column on the Ledger sheet and bill or statement for the day or run. At the end of the day or run this register shows an accumulation of all New Balances of accounts affected by posting. The total amount shown in this register is printed as a sub-total on each proof sheet under the New Balance Column. Copy these figures carefully out of the register. 45 — Crossfooter Register A standard size Crossfooter Register with 7 adding wheels and a capacity of 99999 99 is used to automatically compute crosswise the balance of each entry as the figures are written in the Old Balance, Debit and Credit Columns. When the Balance Column is reached the Crossfooter register indi- cates the New Balance on the account. When the amount shown by the Crossfooter register is entered in the Balance Column it automatically clears the Crossfooter register. As proof that the Crossfooter register is clear, the star-clear signal is printed. This signal cannot be printed unless the Crossfooter register is dear. 46 — Principles of Machine Operation With the Bookkeeping Machine the balancing of each cus- tomer's account affected by posting takes place automatically as the postings are made. The Bookkeeping Machine is so constructed that a series of adding and subtracting stops, placed in proper position on the Crossfooter controlling bar, automatically control all the adding and subtracting necessary to compute the balance on each account in the one operation of posting debits and credits. By following a few simple rules it is an easy matter to accomplish this result without anything more than ordinary care. For example, in debit posting: The star clear signal is printed to show that the Crossfooter register is clear; then the **01d Balance" is printed in the old balance column and 58 Bookkeeping by Machinery adds in the old balance register, which accumulates all old balances. At the same time this amount (the old balance) automatically adds in the Crossfooter (or computing register) ; the " Debit" is posted and as it is printed it adds in the debit register, which accumulates all debits as they are posted. At the same time the same figure (the debit) is automatically added in the Crossfooter, which previously contained the old balance figures. The Crossfooter register now shows the com- puted or new balance (Old Balance plus Debit), which is printed in the Balance column. This figure (the New Balance) adds in the Balance register as it is printed and automatically subtracts from the Crossfooter, which clears as proof that the work was done correctly. As written evidence that the operator did this work correctly, the star clear signal is printed immediately after the new balance is written. In "Credit" posting the same operation takes place with reference to printing star clear signal, printing the "Old Balance" in the old balance column and adding same in the old balance and Crossfooter register. As the "Credit" is posted it adds in the credit register. At the same time it subtracts from the old balance figure in the Crossfooter. The result as shown by the Crossfooter register (the computed or new balance) is printed in the balance column and added in the balance register. At the same time it subtracts from and clears the Crossfooter. The star clear signal is then printed as written proof of correct operation. In Debit posting, "Old Balance" register total plus "Debits" register total for the day or run will equal the "Balance" total, if the work is correct. In Credit posting, "Old Balance" register total less "Credits" register total for the day or run will equal the " Balance* ' total, if the work is correct. Debits and Credits are separately accumulated in the debit and credit registers as posted. Old and New Balances are separately accumulated in the Old and New Balance registers as entries are made. Old Balance Register accumulates all old balances of accounts affected by posting. Items Register proves correct additions on one or more sales tickets and is cleared after each posting. Elliott-Fisher The Bookkeeping Machine 59 Debit Register accumulates all charges for the day or run. Credit Register accumulates all credits for the day or run. New Balance Register accumulates all New Balances of accounts affected by posting. The "Items** Register is the only one cleared after every posting. When mistakes occur, correct them by writing on the proof sheet below the register totals, the details of the errors, and how the correction is made, so that the final figures balance. (See Errors and Their Correction, Section 108.) If each day's work and each separate ledger run has been done correctly, there will be no difficulty of any kind in bal- ancing at the end of the month. Make it a point never to pass any part of the work until you know that it is accurate. Don't doubt or guess. Be sure that every entry is correct and that the figures balance at the end of the run. If there are any errors, correct them as above, so there will be written evidence on the proof sheet that all the work has been done correctly. The proof sheet is not only for con- venience, but protection. It is permanent written evidence of the character of the work. 47— Setting Up Tabulator Stops and Registers Remove tabulator rack and place it on the platen in front of machine scale to set up tab stops. Tab stops must be set up immediately to the right of scale figures on tabulator bar. Use line finder to locate proper position for writing units of dollars which will be the position for the stop. Setting line finder on ruled line at right of column and back spacing four times will give the correct position for the stop and decimal registers. Decimal registers must always be set up to the left of scale figures on register bar. Tab stops and decimal registers must always be set up to the same scale figures. Quantity registers (registers without decimal point spacing) must be set 3 spaces to the left of the corresponding tab stop. The placing of tab stops and registers is very important. (See Page 64.) 60 Bookkeeping by Machinery 48— Rule for Tabulating Use the decimal tabulator keys for all figures to be written and added in columns. By depressing the tabulator key "1" the machine spaces to units of dollars position and you will be able to write and add any figures in that column. By depressing the tabulator key marked "10" the maichine spaces to tens of dollars position and you will be able to write and add any figures in that column. By depressing tabulator key marked "100" the machine spaces to hundreds of dollars position and you will be able to write and add any figures in that column, and so on with larger amounts. To tabulate for figures in fractions of dollars in decimal registers press the decimal tabulator key marked period (.), which automatically spaces the machine to the tens of cents position. You can then write any figures in the tens of cents column. 49 — Location of Tabulator Stops With the Standard Retail Ledger and Standard rulings, place the tabulator stops on tabulator bar to the right of scale figures at the following scale points: 9-15-22-46-59- 69-79-85. (See Page 64.) If the rulings differ from the Standard Retail form, the stops will be in the same relative positions. 50 — Location of Registers on Register Bar (Standard 7D Crossfooter) Place the registers on the register Bar to the left of scale figures at the following scale points: (See Page 64.) T7D Register (Old Balance Column) Scale 9. T5D Register (Items Column) Scale 46. T7D Register (Debit Column) Scale 59. T7D Register (Credit Column) Scale 69. T7D Register (New Balance Column) Scale 79. 51 — Location of Crossfooter Control Stops Normally, the Crossfooter adds. All that is required is a standard size adding stop. The Crossfooter remains neutral and does not operate if there is no stop placed over the column, Elliott-Fisher The Bookkeeping Machine 61 even though you may be adding in a column register, as in the case of the Items Register on the Standard Retail forms. Subtracting stops automatically reverse the Crossfooter mechanism. They are used in widths to correspond with the size of the column registers. The Crossfooter control bar is graduated to correspond with the same scale figures on register bar, front scale and tabulator bar scale. The numerical reading is the dollar posi- tion. If register is located on register bar reading at right side 9, Crossfooter control stop will be located on Crossfooter control bar reading at left side 9, tabulator stop located on tabulator bar reading at left side 9. If the decimal tabulator "r* key is pressed down, the pointer on the front scale on carriage frame will read 9, but the position will be "dollars" in both column and Crossfooter registers, and the print from the type will be in the dollars position on the form. Place Crossfooter control stops to the right of scale figures on Crossfooter Control Bar (beginning with the last stop on the right and working toward the left) at the following scale points: (See Page 64.) Subtracting Stop (Balance Column) Scale 79. Subtracting Stop (Credit Column) Scale 69. Adding Stop (Debit Column) Scale 59. Adding Stop (Old Balance Column) Scale 9. 52 — Actuator Control The Actuator is the adding mechanism of the machine and is located directly over the keyboard. (See Page 54.) The button (lettered "ACT") located on left-hand side of actuator is used for controlling the action of the adding mechanism. The moving in or out of this button or the shifting of the ribbon from black to red changes the words in Actuator Indicator to "Debit" (black); "Credit" (red); "Total" or "Write." With button marked "ACT" in its innermost position, and the ribbon indicator on black, the Actuator Indicator will read "Debit" and the actuator is connected for adding when in the zone of a column register. With button marked "ACT" in innermost position, and ribbon indicator on red, the 62 Bookkeeping by Machinery Actuator Indicator will read "Credit" and the Actuator is connected for adding when in the zone of a column register. With button marked "ACT" pulled to its outermost position the Actuator Indicator will read "Write." This means that the adding mechanism has been disconnected and that the decimal tripping device, which is effective in the zone of the register between dollars and cents, has been disengaged. When button marked "ACT" is in the notch midway between the outermost and innermost position the Actuator Indicator will read "Total." This means that the adding mechanism has been disconnected but that the decimal tripping device is effective for automatically spacing between dollars and cents while in the zone of a column register. Totals written on the paper are checked against the totals shown by the registers before registers are cleared. Make sure printed figures are correct before clearing a register. 53 — Clearing Registers To clear a register press thumb against small knob located on top of register, close to clearing lever (see Page 54), move it to the left, which permits the lever to be raised. Raise lever as far as it will go, after which push the clearing lever down until it locks in normal position. When register is clear It will show all naughts, as follows: 00000 00 (standard size T7D register) . CAUTION: Do not attempt to clear any register while the master wheel is engaged with the register; that is while the machine is in position where the pointer on top of the actuator points into the register. 54 — Crossfooter Control At the right side of the carriage and directly connected with the actuator is an adding and subtracting crossfooter register. This register is automatically controlled by stops arranged on a separate bar, located between the register and tabulator bars at the rear of the carriage, and known as the Crossfooter controlling bar. These adding and subtracting stops can be so located that adding and subtracting over any column is automatically accomplished in the crossfooter. Elliott-Fisher The Bookkeeping Machine 65 Removing an adding or subtracting stop renders crossfooter inoperative for that column. On top of the crossfooter case is an indicator, which reads "ADD" when crossfooter is adding and "SUB" when crossfooter is subtracting. After the stops have been placed on the crossfooter control bar, tabulate into the different columns and make certain that the right stops have been used and correctly located — as shown by the "ADD" and "SUB" indicator and the crossfooter pointer (position indicator) — (see Page 54). When adding or subtracting in the crossfooter the restoring bar in front of the crossfooter must be fully released before the machine can be operated. 55 — Disconnecting and Connecting the Crossfooter Register The Crossfooter register can be disengaged by moving the pointer to disconnect position at extreme right where it automatically locks. To release, press down key at upper left-hand corner of crossfooter, marked "C. F. Release," then press down the restoring bar. 56 — Star Clear Signal Printing Device The star clear signal printing key located at the right of the numeral keys provides a check on the accuracy of the work. This key can only be operated and a star printed when the crossfooter shows all ciphers. If any amount shows in the crossfooter register, the star printing mechanism will not operate, indicating to the operator that a mistake has been made. Always print a star before the old balance to indicate that the crossfooter register is clear before old balance amount is written. Always print a star after each new balance to indicate that the crossfooter register was clear after the new balance was printed. These two rules must be carefully observed to insure accuracy. 57 — Writing and Adding in Column Registers The machine is ready to write and add when the Actuator "control" button is pushed all the way in. The adding mech- 66 Bookkeeping by Machinery anism adds only when in the zone of a register. It is necessary that figures to be added be printed in their proper column in the register. The register adds hundreds when the pointer at the top of the actuator points to hundreds; the same with tens, units or any other decimal or quantity amount. Tabulate accurately to the proper point. Hundreds must always be written under hundreds, tens under tens, units under units, etc. To write and add figures, tabulate into the right position in the register and press the numeral print keys for any figures you desire to write and add. As figures are written the machine adds them in the register. 58 — Writing and Subtracting in Column Registers Inasmuch as the numeral wheels in the column register always turn in the same direction, i. e., always add, sub- traction in the column registers is accomplished by adding the complement of the amount to be subtracted and printed. 59 — The Rule for Complements The complement of 1 is 9. The complement of 2 is 8. The complement of 3 is 7. The complement of 4 is 6. The complement of 5 is 5. The complement of 6 is 4. The complement of 7 is 3. The complement of 8 is 2. The complement of 9 is 1. Any of these two numbers added together will result in a total of if the adding register is of single column capacity. The complement of 2 is 8. The complement of 22 is 78. The complement of 222 is 778. The complement of 2222 is 7778. If we add 2222 to its complement 7778 the result is a total of 0000 00, if we use a decimal register of six column capacity. If we use a larger decimal register the total would be 10000 00. In considering complementary figures we always assume that Elliott-Fisher The Bookkeeping Machine 67 the 1 which shows up at the left in registers of larger capacity runs to the left into infinity. If we have 100 00 from which we wish to subtract 22 00 by the complementary method ; we would add the complement of 22 which is 78 and disregard the 1 in the hundreds column; or run the 1 in hundreds column to infinity by throwing in red non-print O's to the left of the 78 complement. This adds 9's in the register. Thus (in a 6D register) : 100.00 amount in register 0100 00 Adding the complement of 22 00 9978 00 The answer 0078 00 If we had 78 52 from which we desired to subtract 16 87 by the complementary method and were using a 7D Register the process would be as follows: 78 52 in Register 00078 52 Adding complement of 16 87 99983 13 The answer 00061 65 Elliott-Fisher Bookkeeping Machines are equipped with a row of numeral print keys which have two sets of figures. The regular type is used for writing and entering all ordinary figures. The complemental (oblique) type is used for writing and entering all subtracted amounts or credit balance figures. (D©®(D(D®©(D(D(D The operation of making a subtraction or entering a credit balance is completed by striking the complement key before the last figure of value. This key is marked and is located at the right of the non-print keys. The complement key does not space the machine or print anything on the paper. (See rule for credit balances, Section 76.) 60 — Writing, Adding and Subtracting in the Crossfooter Note from the foregoing paragraphs on writing and adding, and writing and subtracting in column registers, that the column register numeral wheels always turn in one direction; i. e., always add. 68 Bookkeeping by Machinery Now observe that the Crossfooter register will add or subtract directly; i. e., the numeral wheels in the Crossfooter register turn in either direction as may be desired. For example, when we write an amount in the Debit column the Crossfooter register adds as well as the column register; when we write an amount in the Credit column the Crossfooter subtracts while the column register adds ; thus the Crossfooter register adds or subtracts regardless of the adding operation in the column register. The Crossfooter register adds or sub- tracts according to the kind of Crossfooter control bar stop used (see Section 54). 61 — Examples: With a 7D register over the Balance column: Suppose after making a credit posting of 100 00 to an ac- count having a debit balance of 54 38 the Crossfooter showed 99954 38, a minus quantity. To write it proceed as follows: With shift key down and ribbon at red, copy out exactly what the Crossfooter shows; strike black non-print key 9 three times; strike black print keys 5, 4, 3, once each; strike com- plement key (which changes the remaining 8 to 7) ; strike black print key 7; the Crossfooter clears and the credit balance of ^^ fe'Z- is printed in red and oblique type on the paper. Another example: Start with a debit balance of 103 10, post a credit of 80000 00 and print the new credit balance. The result on the paper is '"^^9G SO in oblique type and the Crossfooter is clear. Having worked out each of these examples, proved each separately, and practiced on other problems, make the same entries to the same accounts as described in Sections 87-94 inclusive. Make a proof sheet of the entries to all accounts just as you would in actual work. Start with all registers clear. Do not clear the Old Balance, Debit, Credit, or Balance col- umn registers until all entries have been completed. When completed if you have done all the work accurately and copied the totals correctly from the column registers, your proof sheet will look exactly like the one illustrated on page 93. Study all the variations of debits and credits. Some accounts start with no old balance; some with debit balances; some with credit balances; some end with a debit balance; some with a credit balance and some without any balance. Note Elliott-Fisher The Bookkeeping Machine 69 when and why oblique figures are printed; when and why numeral figure is printed ; when and why alphabet letter O is printed. No example has been given showing an entry where the credit posting equals the old debit balance, which of course squares or balances the account, leaving no balance to be entered. In such event always print two ciphers (00) in the balance column to show that the account is balanced. Print the two ciphers in their proper places in cents column. Leave the bill in its place in the ledger until further entries are to be made to that account. Bills showing balanced accounts are not mailed to the customer at the end of the month. Addi- tional entries to the bill later must show proper month dating so there will be no confusion in making reference. The cus- tomer will then understand the complete record of the account from the time one bill is rendered to the rendering of the next bill regardless of the length of time intervening. Practice these examples over and over again until you are sure of each step and can get the correct answer every time. 62— Use of Non-Print Keys The non-print keys are never used in bookkeeping by machinery except when subtracting and printing credit balances. 63— Two Styles of Figures It is necessary to have some means besides black and red figures to further and positively distinguish Debit from Credit Balances, because both are recorded in the Balance Column. Elliott-Fisher The Bookkeeping Machine prints Debit Balances which are regular in regular type and black ink, and prints Credit Balances which are the exceptions in oblique type and red ink. There can be no confusing one with the other, either on the original copy or on a duplicate copy where the carbon makes all entries in uniform color. Note the difference between these two styles of figures and between the figure and letter O characters. 70 Bookkeeping by Machinery Credit Balance or oblique figures. Debit Balance or regular figures. 111222353UUU555666777888999000 UPPER CASE LETTER ^^^ LOWER CASE LETTER 000 64— Rules for Subtracting and Printing Black keys are always used for adding. Red keys are always used for subtracting. To subtract from a register and print the amount sub- tracted on the paper usually requires the use of both the print and non-print keys, depending upon how the amount sub- tracted is printed on the paper. The usual plan is to print the amount subtracted without ciphers to the left of figures of value, viz. : 25 00. Sometimes the character of the work requires that ciphers to left of the figures of value be printed, viz.: (when using a 7D Register) 00025 00. When no ciphers are to be printed to the left of the figures of value, red naught non-print key is used for such ciphers and red print keys for all figures to the right thereof. When ciphers are to be printed to the left of figures of value, red naught print key is used for all the ciphers. All amounts subtracted are printed in oblique type to dis- tinguish subtracted amounts from those which have been added. In bookkeeping, oblique printed amounts indicate that the amount has been subtracted from the column total in which the oblique amount is printed. The remaining total is the net total; i. e., the total addition less the subtracted amount. Oblique figures in the Old and New Balance Columns are known as Credit Balances. Elliott-Fisher The Bookkeeping Machine 71 65 — Examples Example No. 1: Amount in standard size T7D register is 127 34 (register reads 00127 34). To print 16 55 and subtract from register, shift ribbon to red, tabulate into first wheel in register (using tabulator key marked lOM), press red non- print key three times, and with shift key down press red print key 1 once, red print key 6 once, red print key 5 once. Before striking last figure of value, press complement key, then red print key 5 once. Answer: 110 79 in register with V6 ^^ printed in oblique type on paper. Example No. 2: Amount in standard size T7D register is 195 63 (register reads 00195 63). To print 40 05 and sub- tract from register: Shift ribbon to red, tabulate into first wheel in register, press red non-print key three times, and with shift key down press red print key 4 once, red print key twice. Before striking last figure of value, press complement key, then red print key 5 once. Answer: 155 58 in register, with \V^ ^^ printed in oblique type on paper. Example No. 3: Amount in standard size T7D register is 47 00 (register reads 00047 00). To print and subtract 7 00 from register: Shift ribbon to red, tabulate into first wheel in register, and press red non-print key four times. Before striking last figure of value, press complement key, then with shift key down press red print key 7 once, then letter key O (not the numeral key) twice. Answer: 40 00 in register with "A ^^ printed in oblique type on paper. Try subtracting and printing other amounts. Do not pass these examples until you thoroughly understand how to sub- tract and print. Be sure you understand how to use the numeral key always at the left of the last figure of value, and learn to use the alphabet letter O always for all ciphers to the right of the last figure of value. Learn why alphabet letter O key is used in one place and numeral key in another. 66 — Use of Numeral Naught Key (In Column Register) When subtracting figures from a column register (not the crossfooter) and printing them on paper, use the red numeral non-print key for all ciphers to the left of the first figure of value. 72 Bookkeeping by Machinery For all ciphers, between figures of value, use the red numeral print key. Example : To subtract 402 09 from a standard size register of T7D capacity: Shift ribbon to red, tabulate into first wheel of register, and with shift key down, press red numeral non-print key twice, then red 4 print key once, red numeral print key once, red 2 print key once, red numeral print key once, press complement key, then red 9 print key once. 67— Use of Alphabet Letter O Key (In Column Register) When subtracting figures from a column register (not the crossfooter) and printing them on paper, always use alphabet letter O key to the right of the last figure of value. Example: To print 70 00 and subtract from a register of standard size T7D capacity: Shift ribbon to red, tabulate to first wheel of register and with shift key down, press red non-print key three times, then complement key, then red 7 print key once. With shift key still down print remaining 00 with alphabet letter O key because they are not figures of value and will not affect the register. The alphabet letter O is a double arm key in a standard bookkeeping machine keyboard. It prints O on the lower case and oblique on the upper case. The shift key must always be held down when this key is used to complete an amount having ciphers to the right of the last figure of value, because all figures to represent subtracted amounts or credit balances must be oblique to distinguish them from ordinary figures and debit balances. 68 — Copying a Credit Balance (In the Balance Column) Shift ribbon to red and with shift key down, strike black numeral 9 non-print key up to the first figure of value other than 9 to be subtracted and printed. Press corresponding black print key for every other figure, including naughts, shown in crossfooter, up to the last figure of value. Press complement key and then black print key corresponding to the Elliott-Fisher The Bookkeeping Machine 73 last figure remaining in the crossfooter. If this results in a naught, the numeral naught print key is used. This rule applies only when there is a credit balance in the crossfooter which is indicated by complementary 9's to the ~ left of all other figures shown, as 99993 28. If the crossfooter contains only 9*s as 99990 00, the complement key must be struck before the last 9. This changes the 9 to 8. With the shift key down, strike the black 8 print key which prints Von the paper, then strike alphabet letter O key three times and credit balance of VO 00 is shown on the paper. x}^ 123 U5 MDSE 20 00 1U3 U5 Jj* }> IU.3 U5 CASH 153 U5 VO 00 JJ- 69— Use of Numeral Naught Key (In the Balance Column) Example : The crossfooter shows 99994 01 or a Cr. Balance to be printed as ^ 99. Shift ribbon to red and with shift key down, strike black numeral 9 non-print key four times. Press black numeral 4 print key once; press black numeral print key once. Before printing the last figure of value, press complement key. With shift key still down, strike black print key because 1 was a figure of value before it was changed to 0. This clears the crossfooter and the balance printed is ^ 99 CB. «^ 123 U5 MDSE 12 00 135 M-5 ^ * 135 U5 CASH IW I4.I; ^ 99 * 70 — Misuse of Numeral Naught Key (In the Balance Column) Example 1 : The crossfooter shows a credit balance of ^ 00 and the crossfooter register reads 99995 00. The operator proceeds according to the rule (see Section 68), until she prints the figure of value 5. Then with the shift key still down, she strikes the black numeral naught print key twice, by mistake, instead of alphabet letter O key. This results in ^ 99 being printed on the paper instead of the correct credit balance of 74 Bookkeeping by Machinery ^ ^0 . This wrong operation if passed by will result in an error in the amount and final trial balance. * 125 W MDSE 8 00 151 ll5 * * 151 U5 CASH 156 US 5 99 xj^ Example 2 : The crossfooter shows a credit balance of ^ ^0 which reads 99995 00. The operator proceeds according to the rule until she prints the figure of value 5. Then with the shift key still down she strikes the red numeral print key twice by mistake instead of alphabet letter O key. The result is that the correct credit balance of ^ ^^ is printed on the paper, but the crossfooter shows 99999 01, and attention is called to the error because she cannot print the star clear signal. J} 131 M-S CASH 136 U5 ^ ^^ 71— Use of Alphabet Letter O Key (In the Balance Column) (When copying from the crossfooter Register) This key is used to print all naughts when shown to the right of last figure of value. For example: The crossfooter (standard size T7D) shows 99990 00 or a credit balance to be printed as V^ Ci^. Shift ribbon to red and with shift key down, press black numeral 9 non-print key three times, because the remaining 9 in this case is a figure of value. Press complement key which changes the 9 to 8. Press black numeral 8 print key. This prints V. With shift key still down, press alphabet letter O key three times. This clears the crossfooter and the correct balance as printed is \.^ ^0 CB. * 131 U5 CASH lUl U5 VC^ 0^ ri- 72— Entering Credit Balance (In Old Balance Column) The same three rules govern the picking up and printing of a Credit Balance when brought down in the Old Balance column, except that the red numeral keys are used exactly corresponding with the figures to be entered. Elliott-Fisher The Bookkeeping Machine 75 73 — Use of Numeral Naught Key (In Old Balance Column) Example: A credit balance of 5.99 is picked up and entered as an old balance. Shift ribbon to red and press star clear signal key marked JjJL to show that crossfooter is clear. With shift key down strike red numeral non-print key four times. This enters 9999 in the crossfooter and brings us to the first figure of value to be printed. Press red numeral 5 print key once and red numeral 9 print key once. Before printing the last figure of value, press complement key once. Then press red numeral 9 print key once. The result in the cross- footer is 99994 01, which is the complement of the credit balance of ^ 99 printed on the paper. 74 — Misuse of Numeral Naught Key (In Old Balance Column) Example 1: A credit balance of 5.00 is to be entered in the Old Balance Column. The operator proceeds according to the rule until she prints the figure of value 5; then with the shift key still down she strikes by mistake the red numeral print key twice instead of the alphabet letter O key; this prints two oblique ^^ on the paper but adds 99 in the column register and in the crossfooter. This difference of 99c will be detected when checking the pre-determined total of Old Balances against the register total. ^ 131 US CASH 156 ^ ^ 0^ x> y^ ^ ^^ MDSE lU 98 10 97 ^ Example 2: A credit balance of 5.00 is to be entered in the Old Balance Column. The operator proceeds according to the rule until she prints the figure of value 5; then with the shift key still down she strikes by mistake the black numeral print key twice instead of the letter O key. This prints 99 on the paper and the amount shows as ^ 99 instead of ^ ^O as it should show. Neither the column register total nor the Crossfooter is affected by the 99 cent error. «► 151 U5 CASH 136 U5 5 ^^ * * ^99 MDSE 1? 00 8 00 xi- It 76 Bookkeeping by Machinery 75— Correct Use of the Alphabet Letter O Key (In Old Balance Column) A Credit Balance of V^ ^^ is picked up and entered as an Old Balance. Shift ribbon to red and press star clear signal key marked t^T to show that crossfooter is clear. With shift key down strike red numeral non-print key three times. This enters 999 in the crossfooter and brings us to the first figure of value to be printed. Before printing first figure of value (1) press complement key once, then strike red nu- meral 1 print key once. With shift key still down press alphabet letter O key three times. The result in the Crossfooter is 99990 00, which is the complement of the correct Credit Balance of \0 0^ printed on the paper. * 131 U5 CASH lUl U5 VC^ 0^ ti- ^ VO ^^ MDSE 20 00 10 00 JJ^ 76 — Use of Complement Key The Complement Key must always be pressed just before the last figure of value when substracting or in copying credit balance. This rule is the same even if there is only one figure of value to be printed, as V^^ 00 or ^^ ^Y: It covers the crossfooter and all column registers — and credit balances as well as subtractions. Failure to press the complement key according to above instructions will result in wrong balances being computed in the crossfooter and column register or wrong figures being printed on paper. Note the following examples of wrong opera- tion: 77 — Misuse of Complement Key After Last Figure of Value (In Balance Column) With the Crossfooter indicating a credit balance of ^ ^^ and reading 99995 00 : The operator presses the black numeral 9 non-print key four times according to the rule. She fails to strike the complement key before the figure 5, strikes the black 5 numeral print key which prints the figure 4 in oblique type on the paper. She then presses the complement key Elliott- Fisher The Bookkeeping Machine 77 which causes the crossfooter to show the figures 99999 90. She completes the operation by printing two naughts but cannot print the star clear signal. * 131 U5 CASH 136 U5 X ^C^ 78 — Misuse of Complement Key Before Last Figure of Value (In Balance Column) With the crossfooter showing credit balance of ^ ^^ and reading 99995 00: The operator presses the black numeral 9 non-print key three times, then by mistake strikes the complement key, which of course changes the 9 in the cross- footer to 8. She strikes the black 8 and the black 5 numeral print keys which print the figures \\V ^^ in oblique type on the paper instead of the credit balance of ^ ^^ which should have been printed. The crossfooter shows 00000 00 and permits the star clear signal to be printed. While CB. ^\\ ^^ is printed, only ^ 00 has been subtracted from the col- umn register over the balance column. If this mistake in operation is passed by it will result in an error in the account and in the final trial balance. * 131 U5 CASH 136 U5 \J\ 00 * 79 — Failure to Press Complement Key (In Balance Column) With the Crossfooter showing a credit balance of ^ 00 and reading 99995 00 : The operator presses the black numeral 9 non-print key four times according to the rule, fails to press the complement key, strikes the black numeral 5 print key which clears the crossfooter and results in the figures ^\. 00 in oblique type being printed on the paper instead of the correct credit balance of 5.00. If this mistake in operation is passed by it will result in an error in the account and in the final trial balance of 1 00. »> 131 U5 CASH 136 1^5 >\ 00 * 80 — Failure to Press Complement Key (In Old Balance Column) A credit balance of ^ 00 is to be entered in the Old Balance Column. The operator presses the red naught 78 Bookkeeping by Machinery numeral non print key four times, fails to strike the comple- ment key before the 5 — the only figure of value — strikes the red numeral 5 print key once and the alphabet letter O key twice. The result is that the correct credit balance of 5.00 is printed while 6 ^Q> (the complement of 99994.00) has been recorded in the column register. Such an error will be detected when checking the pre-determined total of old balances against the total in the column register, which of course will be $1.00 short. * 131 h5 CASH 136 U5 ^ ^^ «► * 5 ^0 MDSE 15 00 9 00 J^ 81— Misuse of the Shift Key When subtracting or in writing credit balance amounts the shift key must always be held down while striking all keys, otherwise odd errors will result. For example, the crossfooter shows a new balance of 99945 50 (a credit balance of 54.50). The operator strikes black non-print key 9 three times, the black 4, and 5 key, the complement key and the black 4 key, but fails to hold down the shift key and 45.40 is printed in regular or debit balance type instead of ^\ ''t)^ in oblique or credit balance type as would have been printed had the shift key been held down. * 131 U5 CASH 185 95 U5 UO J}^ 82 — A Homely Illustration of Freak Errors All the foregoing mistakes in operation (Sections Nos. 70, 74, 77-81) may appear ridiculous — they are commonly known as freak errors, but it is just such irregular operations that cause long hunts for the mistakes which come from such care- lessness. Were we to say that in writing the word "act" it is necessary to write the a first, the c second and the t third and that if we struck these three letters in some other sequence that the result might spell "cat," it would doubtless be considered a jest. Nevertheless it is just as important to do things on the bookkeeping machine properly and just as absurd to expect proper results from improper operation as it would be to expect the writing keys to spell "act" if we struck the letter c first. The Flat Writing Surface Elliott-Fisher The Bookkeeping Machine 81 83— A Safe Rule for Entering Credit Balances Ordinarily there are so few credit balances to handle, one does not become so expert with credit balances as with debit balances which constitute the greater volume of the work; therefore the operator is more liable to make errors when han- dling credit balances than when handling debit balances. The safe rule is not to pass an entry containing credit balance figures without being absolutely certain that they are correct. It takes but a moment to check an occasional credit balance and to be certain it is correct. Always be sure you are right and then go ahead. 84— The Flat Writing Surface The flat writing surface distinguishes Elliott-Fisher The Bookkeeping Machine from all other machines that write or add. When one writes, whether by hand or machine, it is necessary to place the form upon something to support it while writing. When writing by hand one naturally selects a flat surface, usually a desk or table. A flat surface is always selected be- cause the sheet to be written on is always flat. Any other than a fiat surface would be awkward and unsatisfactory for handwriting. When using Elliott-Fisher, the flat platen provides a flat writing surface for the forms while they are written. With the flat platen forms of any size or thickness can be placed one upon another and quickly assembled and accurately registered as desired. This is the main reason why it is easy to make the ledger, statement and proof sheet (or a multiple of various sized records) all at one simple operation on Elliott- Fisher The Bookkeeping Machine. The flat writing surface does away with the necessity of using loose sheets of carbon paper. With the flat writing surface the carbon paper can be carried in rolls which the machine handles automatically. 85 — Placing Forms in the Machine The proof sheet is placed to the right under the lower carbon roll (see Page 80) and the right edge with punched holes is placed over the proof sheet carrier. 82 Bookkeeping by Machinery The foot pedal (see Page 16) is depressed and the ledger sheet is inserted from the right between the upper and lower carbon rolls and registered, the last entry on the ledger sheet with the last entry on the proof sheet, its left edge under the left platen rail. With the foot pedal still depressed the bill or statement is then placed on top of the upper carbon roll with its left edge under the left platen rail, registering the last item on the bill or statement with the last item on the ledger sheet. Then the foot pedal is released which allows the writing surface to return (rise) to normal position, clamping the forms under the platen rail, as is clearly shown in the illustration. After the entry has been made, pressure on the foot pedal lowers the writing surface, the ledger sheet and bill or state- ment are then removed simultaneously and returned to their proper place in the ledger binder. The proof sheet remains in the machine until it is com- pletely filled with entries or until the run of work is completed. If more than one proof sheet is required for a run of posting, then each proof sheet is numbered in the order of its use and sub-totals are shown on each sheet. In cases where more than one copy of proof sheet, bill or statement are required, platens with more carbon rolls (up to five) may be had on order. 86 — Details of Operation Before proceeding with the actual posting of accounts we must, of course, know how to post debits and credits, and how to handle a debit or a credit balance because we have such conditions in actual work and the examples which follow represent the variations. In accounts receivable work a debit or charge covers goods sold to a customer. The customer's account is debited or charged with the amount of such sale, increasing the amount the customer owes. When the customer owes the firm money, the balance is known as a debit balance. A credit covers goods returned by the customer, or cash paid by the customer. Such items are credited to the account Elliott-Fisher The Bookkeeping Machine 83 of the customer, decreasing the amount the customer owes the firm. When the customer overpays the account, as sometimes happens, the firm owes the customer money and the balance is known as a credit balance. Debit Balances are shown in black. Credit Balances are shown in red. Debits are always posted in the Debit column and Credits are always posted in the Credit column, but Debit Balances and Credit Balances are both shown in the Balance column. The customer's name, in full if possible, is copied from the sales ticket and written on the right margin of the ledger sheet. It manifolds through on the proof sheet. Comparison with the name at the top of the ledger sheet, or the one written just above in the margin, calls immediate attention to any error. An item posted to the wrong account is thus detected at once. EXAMPLES OF ENTRIES 87— A Debit (Charge) Posting to an Account Having No Old Balance Example: Mrs. A. B. Axtel, who has an account at the store, but owes the store nothing, makes a charge purchase of 1 Pr. Shoes $7.65 1 Pr. Slippers 4.00 1 Polishing Outfit 75 $12.40 Print the star clear signal immediately to the left of the old balance column. There is no old balance on the account so the machine is tabulated to the No. column and the sales ticket or clerk number is written ; the machine is tabulated to the Date column and the date written. The machine is tabulated to the Items column, the three items are written and the respective amounts added in the 5D Items register; the total of 12 40 is written in the Debit or Charge column which simultaneously adds in the Debit column register and adds in the crossfooter register. The amount shown in the crossfooter register is the New (Debit) Balance on that account. 84 Bookkeeping by Machinery The machine is tabulated to the tens of dollars position in the Balance column, and the New Balance of 12 40 is written; this simultaneously adds in the Balance column register and subtracts from and clears the crossfooter register. The star clear signal is printed immediately to the right of the Balance column as written evidence that the entry was correctly made. Mrs. A. B. Axtel's name, in full if possible, is then copied from the sales ticket and written on the right mar- gin of the ledger sheet ; it manifolds through on the proof sheet so that the complete name (part carbon copy and part original) shows on the proof sheet. This is a check against posting tickets to the wrong account. Having completed the entry, the crossfooter register is clear. The column registers prove the accuracy of the work. Old Balance 00 -h Debits 12 40 = Balance 12 40. The operator then clears the items register and proceeds with the next entry. 88— A Debit (Charge) Posting to an Account Having an Old Debit Balance Example: Mrs. B. C. Baxter, who already owes the store $32.45 on open account, makes a charge purchase of 2 Waists $10.00 1 Boy's Suit 13.75 $23.75 Print the star clear signal immediately to the left of the Old Balance column, tabulate to the tens of dollars position in the Old Balance column; print the old balance of 32 45; this simultaneously adds in the Old Balance column register and in the crossfooter register; tabulate to the No. column and write the sales ticket or clerk number; tabulate to the Date column and write the date; tabulate to the Items column and write the items in the regular way which lists the amounts in the 5D items register and shows a total of 23 75; tabulate to the tens of dollars position in the Debit column and write the amount of the charge 23 75 ; this simultaneously adds in the Debit column register and in the crossfooter register (which already contains 32 45) ; the crossfooter register now reads Elliott-Fisher The Bookkeeping Machine 87 56 20, which Mrs. Baxter owes; tabulate to the tens of dollars position in the Balance column and write 56 20; this simul- taneously adds in the Balance column register and subtracts from and clears the crossfooter register. Print the star clear signal immediately to the right of the Balance column; then write Mrs. B. C. Baxter's name on the margin of the ledger sheet and on the proof sheet as heretofore described. Having completed the entry the crossfooter register is clear. The column registers prove the accuracy of the work. Old Balance 32 45 + Debits 23 75 = Balance 56 20. The operator then clears the items register and proceeds with the next entry. 89— A Debit (Charge) Posting to an Account Having a Credit Balance, the Charge Being Larger Than the Credit Balance Example: Mrs. C. D. Cadwick, who has overpaid her account, the store owing her $7.63, makes a charge purchase of ISuit $45.00 Print the star clear signal immediately to the left of the Old Balance column; tabulate to the first register wheel (to the left) position in the Old Balance column, which, if a 7D register, will be the tens of thousands dollars position; switch on red ribbon; hold shift key down, strike red numeral non-print key four times, red 7 print key once, red 6 print key once, complement key and then the red 3 print key. This operation prints the credit balance of **\ ^p) in oblique figures in red in the Old Balance column ; this simultaneously adds the complement of 7 63 (99992 37) in the Old Balance column register and in the crossfooter register; shift ribbon to write black, tabulate to No. column and write sales ticket or clerk number; tabulate to Date column and write the date; tabulate to Items column and write the description of the article; there is only one item so disregard the 5D Items register and tabulate to tens of dollars position in the Debit column ; write the amount of the ticket 45 00 ; this simultaneously adds in the Debit column register and in the crossfooter register (which already contains the complement of the old credit balance). The crossfooter register now reads 37 37 which Mrs. Cadwick owes; tabulate to the tens of dollars position in the balance c»lumn; write 37 37 which simultaneously adds in the Balance 88 Bookkeeping by Machinery column register and subtracts from and clears the crossfooter register. Print the star clear signal immediately to the right of the New Balance column; then write Mrs. C. D. Cadwick's name on the margin of the ledger and on the proof sheet as heretofore described. Having completed the entry the crossfooter register is clear. The column registers prove the accuracy of the work. Old Balance 99992 37 -f Debits 45 00 = Balance 37 37. 90— A Debit (Charge) Posting to an Account Having a Credit Balance, the Charge Being Smaller Than the Credit Balance Example: Mrs. D. E. Dapper, who has overpaid her ac- count $10.00, makes a charge purchase of 10 Yards Ribbon $0.50 4 Spools Thread 32 1 Silk Braid 1.25 $2.07 Print the star clear signal immediately to the left of the Old Balance column; tabulate to the first register wheel (to the left) position in the Old Balance column, which, if a 7D register, will be the tens of thousands dollars position; switch on the red ribbon; hold shift key down; strike red numeral non-print key three times; strike complement key and red 1 print key once; then strike alphabet letter O key three times. This operation prints the credit balance of V^ 0^ in oblique figures in red in the Old Balance column ; this simultaneously adds the complement of 10 00 (99990 00) in the Old Balance column register and in the crossfooter register; shift ribbon to write black; tabulate to No. column and write sales ticket or clerk number ; tabulate to Date column and write the date; tabulate to the Items column and write the items which lists the amount in the 5D Items register and shows 2 07; tabulate to the units of dollars position in the Debit column and write the amount 2 07 ; this simultaneously adds in the Debit column register and in the crossfooter reg- ister; the crossfooter register now reads 99992 07, the com- plement of Mrs. Dapper's credit balance or the amount the Elliott-Fisher The Bookkeeping Machine 89 store owes Mrs. Dapper. Tabulate to the first register wheel (to the left) position in the Balance column which, if a 7D register, will be the tens of thousands dollars position; switch on the red ribbon; hold shift key down; strike black 9 non- print key four times, black 2 print key once, black numeral print key once; strike complement key (which changes the remaining 7 in the crossfooter register to 6) then the black 6 print key once ; this operation has printed the credit balance of 'X S*"^ in oblique type in red in the Balance column ; it si- multaneously added the complement (99992 07) in the Balance column register and subtracted from and cleared the crossfooter register. Print the star clear signal immediately to the right of the Balance column; then write Mrs. D. E. Dapper's name on the margin of the ledger and proof sheet as heretofore described. Having completed the entry the crossfooter register is clear. The column registers prove the accuracy of the work. Old Balance 99990 00 + Debit 2 07 = Balance 99992 07. The operator then clears the Items register and proceeds with the next entry. 91 — A Credit Posting to an Account Having an Old Debit Balance Larger Than the Credit Example: Mrs. E. F. Eddy, who owes the store $162.43, pays on account $98.75. Print the star clear signal immediately to the left of the Old Balance column. Tabulate to the hundreds of dollars position in the Old Balance column, write 162 43 old balance; this simultaneously adds in the Old Balance column register and in the crossfooter register; switch on the red ribbon; tabulate to the No. column and write the cash ticket number; tabulate to the Date column and write the date; tabulate to the Items column and write "cash;" tabulate to the tens of dollars position in the Credit column; write 98 75 credit; this simultaneously adds in the Credit column register and subtracts from the old balance amount (162 43) in the cross- footer register; the crossfooter then reads 63 68, which Mrs. Eddy owes the store; switch ribbon back to write black, tabulate to tens of dollars position in the Balance column and write 63 68; this simultaneously adds in the Balance column 111! 90 Bookkeeping by Machinery register and subtracts from and dears the crossfooter register. Print the star clear signal immediately to the right of the Balance column; then write Mrs. E. F. Eddy's name on the margin of the ledger and proof sheet as heretofore described. Having completed the entry the crossfooter is clear. The column registers prove the accuracy of the work. Old Balance 162 43 — Credit 98 75 = Balance 63 68. 92— A Credit Posting to an Account Having an Old Debit Balance Smaller Than the Credit to be Posted Example: Mrs. F. G. Fuller, who owes the store $34.25, sends a check for $35.00 to be placed to her credit. Print the star clear signal immediately to the left of the Old Balance column ; tabulate to tens of dollars position in the Old Balance column and write the Old Balance 34 25 ; this simultaneously adds in the Old Balance column register and in the crossfooter register; shift the ribbon to write red; tabulate to the No. column and write the cash ticket number; tabulate to the Date column and write the date; tabulate to the Items column and write **Cash;" tabulate to the tens of dollars position in the Credit column and write the amount of the credit 35 00; this simultaneously adds in the Credit column register and subtracts from the crossfooter register. As the credit 35 00 is larger than the Old Balance 34 25, the cross- footer register shows 99999 25, the complement of the amount the store owes Mrs. Fuller or a credit balance of '"^. Tabulate to the first (left) register wheel in the Balance column which, if a 7D register, would be tens of thousands dollars position; with the ribbon still set to write red, hold down the shift key, strike the black 9 non-print key five times, black 2 print key once; then strike complement key (which changes the remaining 5 in the crossfooter to 4) ; then the black 4 print key. This prints "^ cents credit balance in red and oblique type and simultaneously adds the complement (99999 25) in the Balance register and subtracts from and clears the cross- footer register. Print the star clear signal immediately to the right of the Balance column ; then write Mrs. F. G. Fuller's name on the margin of the ledger and proof sheet as heretofore described. Elliott-Fisher The Bookkeeping Machine 91 Having completed the entry the crossfooter is clear. The column registers prove the accuracy of the work. Old Balance 34 25 — Credit 35 00 = Balance 99999 25. 93— A Credit Posting to an Account Having No Old Balance Example : Mrs. G. H. Gilling, after having paid her month's bill, discovers that a humidor she had purchased at $4.50 is not satisfactory ; she returns it to the store for credit. Print the star clear signal immediately to the left of the Old Balance column; there is no old balance; switch ribbon to write red; tabulate to No. column and write number of merchandise credit; tabulate to Date column; write the date; tabulate to the Items column; write "1 Humidor;" tabulate to units of dollars position and write amount of credit 4 50; this simultaneously adds in the Credit column register and subtracts from the crossfooter register. As there was no Old Balance, the crossfooter now shows a credit balance of 99995 50 or the complement of 4 50 which the store owes Mrs. Gilling. Tabulate to the first (left) register wheel in the balance column, which, if a 7D register, would be tens of thousands dollars position and with the ribbon still set to write red, hold down shift key ; strike the black numeral 9 non-print key four times, the black 5 print key once; strike complement key (which reduces the remaining 5 in the crossfooter register to 4) ; strike the black 4 print key, and the alphabet letter O key once. This prints the credit balance of Nv ^^ in red and oblique type, simultaneously adds the complement (99995 50) in the Balance column register, subtracts from and clears the crossfooter register. Print the star clear signal immediately to the right of the Balance column; then write Mrs. G. H. Gilling's name on the margin of the ledger and proof sheet as heretofore described. Having completed the entry the crossfooter is clear. The column registers prove the accuracy of the work. Old Balance 00 — Credit 4 50 = Balance 99995 50. 94 — A Credit Posting to an Account Having an Old Credit Bcilance Example: Mrs. H. I. Hinkle received her monthly bill . from the store, showing a balance of $45.10. She carelessly writes a check for $54.10 and sends it to the store; her account 92 Bookkeeping by Machinery is overpaid $9.00 The store owes her $9.00 before she returns the following items for credit. This increases her credit balance to $19.50. 1 Child's Suit $7.50 1 Child's Hat 3.00 $10.50 Print the star clear signal immediately to the left of the Old Balance column; shift ribbon to write red; tabulate to first (left) register wheel in Old Balance column which, if a 7D register, will be the tens of thousands dollars position; hold down shift key; strike red numeral non-print key four times; strike complement key; then red 9 print key once and alphabet letter O key twice. This prints 9 00 old credit balance in red and oblique type; this simultaneously adds the complement of 9 00 (99991 00) in the Old Balance register and in the crossfooter register. Tabulate to No. column and write merchandise credit ticket number; tabulate to Date column and write the date; tabulate to Items column and enter the two items as though it were a charge ticket (except it is written in red) ; the total of the two items will list in the 5D Items register and show a total of 10 50; tabulate to the tens of dollars position in the Credit column and write the amount of the Credit 10 50; this simultaneously adds in the Credit column register and subtracts from the crossfooter register. The crossfooter now shows a Credit Balance of 99980 50, the complement of 19 50 which the store owes Mrs. Hinkle. Tabulate to the first (left) register wheel in the Balance column, which, if a 7D register, would be tens of thousands of dollars position ; with the ribbon still set to write red, hold down shift key and strike the black 9 non-print key three times, the black 8 print key once, the black numeral print key once; strike complement key (which reduces the remaining 5 in the crossfooter to 4) ; the black 4 print key once and the alphabet letter O key once. This writes the credit balance of \9 ^0 in red and oblique type; it simultaneously adds the complement (99980 50) in the Balance column register and subtracts from and clears the crossfooter register. Print the star clear signal immediately to the right of the Balance Elliott-Fisher The Bookkeeping Machine 93 column; then write Mrs. H. I. Hinkle's name on the margin of the ledger and proof sheet as heretofore described. Having completed the entry the crossfooter is clear. The column registers prove the accuracy of the work. Old Balance 99991 00 — Credits 10 50 = Balance 99980 50. 95— Rules for Proving the Work Having correctly done each of the foregoing examples separately, now start with a clean proof sheet and do each example from Axtel to Hinkle over again exactly as described ; but do not clear the column registers until all the examples have been completed and the totals as shown by the column registers have been written on the proof sheet, with the adder disconnected, as described below in this section. If you have done all the work correctly your proof sheet will be an exact duplicate of the one illustrated on page 95. The totals as shown at the bottom of the run of work prove correct operation. Old Balances 202 50 + Debits 83 22 — Credits 148 75 = balances 136 97. Now observe: While making the individual entries the first time, that sometimes register totals appeared as comple- ments of credit balances; these complementary figures shown by the registers balanced the work. Now note : When all these entries are combined in one run of work, the final register totals are all in debit balance amounts; all the credit balance items entered are less than all the debit balance items entered. The point to always remember is that the totals as actually shown in the column registers, no matter whether they appear as debit or credit balance amounts, will, if the work is correctly done, always balance. Thus the rule: Old Balance register total plus Debits register total minus Credits register total always equals the Balance Column register total. First: Copy accurately the column register totals with the actuator disconnected (with the actuator indicator reading "total"). Second: Clear all column registers. Third: Connect the actuator (with the indicator reading "add'*) and repeat the register total figures from the proof 94 Bookkeeping by Machinery sheet. This balances the register totals; if the work has been done correctly the star clear signal can be printed after the balance as in ordinary operation. Occasionally the total shown in the Old Balance or Balance Column registers may represent Credit balances which are larger than the Debit balances. In such cases prove the work in the same way as with regular figures. If necessary, the actual amount of the credit balance can be written below this total, after the work has been proved, as follows: Old Balance Dr. Cr. Balance Total 99175.16 1329.81 986.29 99518.68 Proof *99175.16 1329.81 986.29 99518.68* C. B. 824.84 C. B. 481.32 96— CAUTION Write the totals first, then clear the column registers and balance the totals. Never under any condition or circumstance attempt to balance register total figures and write the totals on the proof sheet afterwards. Always follow this rule and avoid hunting for mistakes at the end of the month. Don't pay any attention to some one's pet plan which you are told is better or shorter. Stick to these instructions if you wish to avoid mistakes at the end of the month. Elliott-Fisher The Bookkeeping Machine 95 ^ o o on — cc or z UJ -I Hi » Ul UJ — 1 UJ H Q Q. >- _l _l H- X < Q. Q -I _1 2 X <: X < az> — < CD o Q UJ li. CD X CO O Q UJ o a X — < CD O Q UJ U- O X ^ ^ir •Cr^-^^ a W rov S>v8r ^ ^ 0^0^ SK f® ^ 5? CD CQ CD O o O CD O lO o o l^o in o ID laia ^IR^ O •H §§ If) O IT) O If) "oo p- o r- o c\j in in rTNCvj o O I-: UJ UJ Z (T q: 3 »- 3 < - COX— UJZ3< C/5Q-Z — cD(-< o:cox u) Q. — 3 — q: O — XCOCO QiCOCQ coco X-JCOH _| CEQQ wco— - — QO_l O — — _IU_ Q:cr:o-Q. — xx — xx CO Ul CJ tsl CD _1 — Ul q: Ul o CD Z O ul H UJ UJ S X < q: Ul X l- q: > ►- Ul 3 z < I C3 o S X t- z o 3 •■ < _J < -J H o UJ -J — o a Ul IX. < cr UJ h- o » — -1 o u. u. Q. _l z UJ — QC O < CO UJ O z J— q: — cc • u. Ul < Ul UJ < CD Ul Q > > _l Ul Ul o (T CO o CD Z CD < > < Ul < z (T Q -J • » UJ o z z o Q Z X CO < » Ul < (- Ul o UJ 1- o X CD z K Q CO co CO UJ _J a: 3 _i a: CO _J a. 2 < << »- u s Ul CO o O _l CO CD _l UJ cr < H- l-O^ Ul z H- O Ul z => t- < O Ul I Ul C3 o CJ t— 2 J- UJ- o z CD U. u. -1 Ul o cr CO < CO o Ul Ul UJ CO z UJ CO t^i O C3 I — oc _ t- o < X CO O CO CO CD O O ii^^^ Oi CM O O OJ C\J ^ ^ ^ ^ Elliott-Fisher The Bookkeeping Machine 97 Chapter VI ERRORS 97 — Errors Resulting From Mis-operation and How to Correct Them Elliott-Fisher The Bookkeeping Machine when properly operated shows up — detects — the operator's mistakes. The machine itself cannot see that the operator brings forward the Old Balance figures correctly or that the amount of a debit or credit posted is the correct one, or that the operator posts to the right account; so the operator, or those in control, must supply the correct figures. Elliott-Fisher The Bookkeeping Machine with the Proof Sheet is designed to give the maximum of safety against operat- ing errors and also to show up errors when they do occur. Column registers total the Old Balances entered; total the postings (Debits or Credits) entered; total the New Balances entered. These column registers operate independently of each other or of the crossfooter register. If one clerk added Old Balances, a second clerk added postings (Debits or Credits), a third clerk added Balances only, while a fourth clerk computed crosswise to secure the New Balance figure; when all these four clerks had finished their work, all their figures had balanced one against the other to prove all the entries; the proof would be no better than that furnished by the column and crossfooting registers on Elliott-Fisher The Bookkeeping Machine. If all these four clerks doing their work at separate oper- ations used adding and listing machines and then brought the listed figures together; the written evidence of correct operation would not be nearly so complete as that furnished by the one proof sheet made by Elliott-Fisher The Bookkeeping Machine; because The Bookkeeping Machine proof sheet contains in addition to all the figures listed, all details about each posting and the name of the account to which each posting was made. The proof sheet when properly made and analyzed furnishes definite evidence of the cause of mistakes. 98 Bookkeeping by Machinery 98 — Locating Errors When every day's work is done correctly there will not be any mistakes to correct at the end of the month. If your books don't balance at the end of the month: Check your trial balance figures to see if you have entered thereon all balances correctly as shown by the ledger accounts. While making this check see that you carried the balance forward correctly from the old to the new ledger page. Compare the new trial balance sheet with the one for the month previous to see that all accounts have been taken into consideration. You may have transferred a live account, or you may have failed to transfer a dead account. Look over your proof sheets and check each correction to see that it was properly made on the ledger. Check all journal transfers and special entries. Check your control sheet with the Auditor's control sheet. Again balance each day's proof sheets for the month. Add the New Balance column of your proof sheets. Add the Old Balance column of your proof sheets. Add the Debit and Credit columns of your proof sheets. You may have improperly used the complement key. (See Sections 77-80.) You may have improperly used the alphabet letter O key, or the numeral naught key. (See Sections 70, 74.) You may have used the shift key improperly. (See Sec- tion 81.) If you have not proved bringing down the Old Balances daily in accordance with the rule (see Section 27), it will be necessary to add each account in the ledger or check each entry until the error in bringing forward old balance is found. Some operators add and balance each account in the ledger at the end of the month. This is unnecessary when a proof sheet is used with a daily pre-determined total of old balances of accounts affected. Adding and balancing each ledger ac- count is evidence of careless operation or of poor office control. If you do make a mistake correct it yourself immediately — don't delay — you might forget. Don't make a correction with a memorandum slip — the slip might become lost. Don't tell some one else to make the correction — it might not be done. When you correct the mistake, make the correction so Elliott-Fisher The Bookkeeping Machine 99 anyone else can understand it and know that there has been an error and that it was corrected. 99 — Correction of Errors Since human beings sometimes make mistakes, there must be a proper means for correcting errors when they do occur. It is important to know how to make corrections and equally important that the correction show what the error was, that it was corrected and how it was done. It should be noted that some errors are detected the mo- ment they are made, either by the machine or instinctively by the operator. Other mistakes may not show up until balancing or proving the day's run of work. The principle of correcting all mistakes, no matter when they are detected, is always the same. 100— The Rule A straight contra-entry correction of every error made by a bookkeeping machine operator (whether it affects the Old Balance, the Debit, the Credit or the New Balance) with a brief explanation in the description column of what the error was and how it was corrected is fundamentally good bookkeeping. 101 — Old Balance Column Errors Contra-entry means that any error in the Old Balance col- umn will be corrected by writing the same (error) figures in the New Balance column and then entering the correct fig- ures in the Old Balance column. Example: An old balance of 124.32 has been brought forward in the Old Balance column as 142.32. To correct this error the operator writes 142.32 in the balance column and also writes the abbreviation "Err" opposite the error amount in the Old Balance column and "Cor" opposite the amount in the New Balance column, after which the operator enters the correct Old Balance of 124.32 in the Old Balance column. Illustration : Old Balance Description Dr. Cr. Balance ♦142.32 Err Wrong Old Balance 142.32* Cor *124.32 100 Bookkeeping by Machinery 102— Debit Column Errors Contra-entry means that any error in the Debit column will be corrected by writing the same (error) figures in the Credit column and then entering the correct figures in the Debit column. Example: A charge of 23.25 has been en- tered in the Debit column as 28.25. To correct this error the operator writes 28.25 in the Credit column and also writes the abbreviation " Err" opposite the error in the Debit column and "Cor" opposite the amount in the Credit column, after which the operator enters the correct charge of 23.25 in the Debit column. Illustration : Old Balance Description Dr. Cr. Balance Wrong Entry 28.25 Err 28.25 Cor 23.25 In the event that the error in the Debit column was a charge to the wrong account it is only necessary to make a contra-entry in the Credit column — or in other words credit the account with the amount which had wrongly been charged to that account with the proper explanation in the description column. 103— Credit Column Errors Contra-entry means that any error in the Credit column will be corrected by writing the same (error) figures in the Debit column and then entering the correct figures in the Credit column. Example: A credit of 50.00 has been en- tered in the Credit column as 5.00. To correct the error the operator writes 5.00 in the Debit column and also writes the abbreviation "Err" opposite the error in the Credit column and "Cor" opposite the amount in the Debit column, after which the operator enters the correct credit of 50.00 in the Credit column. Illustration : Old Balance Description Dr. Cr. Balance Wrong Entry 5.00 Err 5.00 Cor 50.00 In the event that the error in the Credit column was a credit to the wrong account it is only necessary to make a contra-entry in the Debit column — or in other words, debit Elliott-Fisher The BooKKEE^iN^;]V|ACj5ri^^^. ' : iOi \ the account with the amount which had wrongly been cred- ited to that account, with the proper explanation in the description column. 104 — Balance Column Errors Contra-entry means that any error in the Balance column will be corrected by writing the same (error) figures in the Old Balance column and then entering the correct figures in the Balance column. Example: A balance of 37.40 has been written in the Balance column as 34.70. To correct the error the operator writes 34.70 in the Old Balance column and writes the abbreviation "Err" opposite the error amount in the Balance column and "Cor" opposite the amount in the Old Balance column, after which the operator enters the cor- rect balance of 37.40 in the Balance column. Illustration: Old Balance Description Dr. Cr. Balance Wrong Extension 34.70 Err 34.70 Cor 37.40* 105 — Correction for Each Error Contra-entry is a simple way of saying that for each amount written in error there must in every case be the same amount entered opposite to offset the error. When there is only one amount in error, only one amount to offset is necessary. But if some one error causes other errors there must be correcting entries for each error. Example: An old balance of 124.32 has been brought forward in the Old Balance column as 142.32, not discovered at the time and was followed by a charge or debit entry of 10.00 and the balance of 152.32 resulted, which was also entered. There are two errors to offset by contra-entries in order to complete the corrections. Both these erroneous amounts must be marked "Err." Then the wrong old balance of 142.32 must be written in the Balance column and the wrong new balance of 152.32 must be written in the Old Balance column with "Cor" written opposite both amounts, after which the correct old balance of 124.32 must be entered in the Old Balance column, and the correct new balance of 134.32 extended in the Balance column. Illustration : it>2\ : { ^ ' J i ^ BOpRKEEPING BY MACHINERY Old Balance Description Dr. Cr. Balance *142.32 Err 10.00 152.32* Err *152.32 Cor Wrong Balances 142.32 Cor 124.32 134.32* All the examples and illustrations of Balances and Old Balances show Debit balances because ninety-five per cent of ordinary work shows Debit balances. Occasionally, however, a Credit Balance or overdraft amount will be encountered. The rule of contra-entry takes care of the correction of Credit balance errors the same as it does on Debit Balances. Ex- ample: An old credit balance of 19.75 is brought forward in the Balance column as 17.95. To correct the error the operator writes 17.95 in the Balance column and also writes the abbre- viation *'Err'* opposite the error amount in the Old Balance column and "Cor" opposite the amount in the New Balance column, after which the operator enters the correct credit Old Balance of 19.75 in the Old Balance column. Illustration: Old Balance Description Dr. Cr. Balance *17,95 Err Wrong Old Balance 17 JS'^ Cor *19J5 106— Proof Sheet Record Experience has shown that without the proof sheet, the bookkeeper at the end of the month, with a machine posted ledger out of balance, is in identically the same position as if his ledger had been posted by hand — and must do just what the hand bookkeeper does, check through the ledger. Any- one knows what a despairing job that is. The proof sheet is valuable because it furnishes a record of all entries in the day's run of work in exactly the order in which the entries were made. If the proof sheet of all entries is good to show up mistakes when mistakes do occur, it is certainly just as necessary that the proof sheet show the correction of all mistakes so that there will be written evidence that the corrections were prop- erly made. All corrections must be made with the print and add keys and show on bill or statement and ledger as well as on the proof sheet. Elliott-Fisher The Bookkeeping Machine 103 All of the operator's tracks or entries must appear on the bill or statement, ledger and the proof sheet. It won't do to make an entry, or correction on any one record without manifolding it at the same operation on all records. It won't do to make corrections with the non-print keys any more than it will do to make regular entries with the non-print keys. It won't do to use an eraser to remove any items printed in error because an eraser destroys the evidence of what was actually done. 107 — Proof Sheet Is the Itemized Journal Good accounting practice requires a separate journalized entry to cover correction of errors — ^written evidence that cor- rections are properly cared for. The proof sheet provides such complete information. It shows the error as well as the correction and furnishes a clear record of everything the operator did so that anyone may ascertain, at any time, from the written proof sheet record just how and when all entries and all corrections were made and the reasons for making them. 108 — Examples of Proof Sheets Herewith are shown the proof sheet entries of a sample run of work containing errors which were detected and corrected in the run of work. For the purpose of illustration the two first errors heretofore described are used. Proof Sheet No. 3 Debits. December 4, 1917 Old Balance Description Dr. Cr. Balance Forward from Sheet #2 * 1027.53 321.84 1349.37* * 23.14 4.89 28.03* * 9.69 3.15 12.84* * 56.18 12.50 68.68* Error # 1 and correction ♦ 142.32 Err.- -Wrong old balance 142.32 Cor. 124.32 5.00 129.32* ♦ 15.26 .98 16.24* ♦ 56.72 6.46 63.18* * 8.63 1.95 10.58* * 41.62 17.98 59.60* K * 19.28 4.85 24.13* 1 * 8.75 3.75 12.50* 104 Bookkeeping by Machinery Error # 2 and correction * 50.00 Wrong Entry 28.25 Err. 28.25 Cor. 23.25 73.25* ♦ 24.55 9.50 34.05* Register totals at 1607 .99 444.35 28.25 2024.09 end of run * 1607.99 444.35 28.25 2024.09* Total of errors * 142.32 28.25 28.25 142.32* Net Result 1465.67 416.10 00.00 1881.77 Proof * 1465.67 416.10 00.00 1881.77* When corrections have been properly made the totals of the errors are always the same in the Old Balance column and the Balance column and the totals of errors in the Debit and Credit columns are always the same. Now let us show the proof sheet of a run of work contain- ing errors which were not discovered until the run of work was completed and the correction of those errors made after- wards, using errors Nos. 2 and 5 heretofore described. Proof Sheet No. 5 Debits, December 4, 1917 Old Balance Description Forward from Sheet Dr. Cr. Balance #4 Error # 2 Error #5 (a) 1801.05 75.00 112.20 8.00 19.80 100.00 50.60 45.24 150.00 142 . 32X 38.29 17.21 Register totals at end of run 2559.71 Proof * 2559.71 (c) 421.20 2222.25* 20.00 95.00* 30.18 142.38* 2.50 10.50* 3.40 23 . 20* 28.25X (b)X128.25* 11.20 61.80* 16.80 62 . 04* 50.00 200.00* 10.00 (b)X152.32* 5.00 43.29* 4.64 21.85* 603.17 3162.88 603.17 3162.88* Old Balance total 2559.71 does not prove with the pre- determined adding machine total of old balances which is 2541.71 and error No. 5 is discovered. Debits total of 603.17 does not prove with the pre-determined total of charges to be entered of 598. 1 7 and error No. 2 is discovered. As errors are located on the proof sheet mark each error with a heavy cross Elliott-Fisher The Bookkeeping Machine 105 (X). Corrections are made by entries on ledger, bill or state- ment and a new proof sheet as illustrated below. Debit Proof Sheet of Corrections on Sheet No. 5, December 4, 1917 Old Balance Description Dr. Cr. Balance Run totals for- ward ♦2559.71 603.17 Err. 3162.88* Correction error #2 (a) *128.25 Err.— wrong 28.25 Cor. (d) entry 23.25 123 25* Err. Err. Correction (a) *152.32 Cor.— wrong balances (b) 142. 32 Cor. Error # 5 124.32 134.32* Totals 2964.60 626.42 28.25 3562.77 *2964.60 626.42 28.25 3562.77* Total of errors (a) *422 . 89 (c) 28 . 25 (d) 28 . 25 (b) 422.89* Net Results 2541.71 598.17 00.00 3139.88 Proof *2541.71 598.17 00.00 3139.88* 109— To Secure Total of Errors To secure total of errors when a separate proof sheet for corrections is used, total the amounts in each column on cor- rection proof sheet marked "Err" and "Cor" and add to these totals the amounts in error marked by a heavy cross on the regular run proof sheets. These are all amounts which would not appear if the work had been done correctly in the first place; they must be deducted to reconcile the register totals with the pre-determined totals; then the final totals will balance. The amounts which make up these "Error" totals are identified by "a," "b," "c" and "d." The old Balance total 422.89 is made up of the three amounts marked "a," 142.32, 128.25 and 152.32 ; the Debit total 28.25 consists of the amount 28.25 marked "c;" the Credit total 28.25 consists of the amount 28.25 marked "d;" the Balance total 422.89 is made of the three amounts marked "b," 128.25, 152.32 and 142.32. 110 — Authority for Corrections Good accounting practice usually places some restrictions upon the right of the bookkeeper to make changes or correc- tions in accounts on the ledger. 106 Bookkeeping by Machinery In Bookkeeping by Machinery the general rule is: When an error is detected as soon as it is made the Book- keeping machine operator corrects it immediately as described, on the ledger, bill or statement and proof sheet without other authority. The proof sheet is written evidence of what was done. When an error is discovered in proving the work at the end of the run of posting the Bookkeeping Machine operator corrects it immediately as described, on the ledger, bill or statement and proof sheet without other authority. The proof sheet is written evidence of what was done. All errors which show up after the day's work is finished can only be corrected by entries made from a voucher giving full particulars of the error and correction. This voucher must be approved by an official or properly authorized clerk before the Bookkeeping Machine operator enters it on the ledger, bill or statement and proof sheet. All voucher corrections should be entered on a special correction voucher proof sheet. Should there be a freak error which, through careless opera- tion as indicated in Sections 70-81, the operator passes by in the day's work, it will show up in the trial balance. To correct it, a signed authorization correction voucher is secured and the balance as shown is picked up, a debit or credit entry is made to correct it, with the necessary explanation ; a cor- rection proof sheet must be made to properly record the entry. The only difference is that the trial balance will be the author- ity for the correctness of the work instead of the proof sheet. The proof sheet is the authority for the correction of errors which are detected in the day's work. Ill — Rewriting Bills or Statements Any bill or statement on which there has been an error and correction made should be re-written and carefully checked with the ledger before it is mailed to the customer. In this way nothing but a perfect bill or statement is ever sent to the customer. Perhaps some one may say there would be too many bills or statements to rewrite, but experience shows otherwise ; besides what is worth doing at all is worth doing well. Furthermore, the greater the penalty for being careless and making mistakes, the fewer errors there will be to contend with. Elliott-Fisher The Bookkeeping Machine 107 Any operator should be ashamed to admit that she makes so many mistakes that rewriting bills or statements containing errors would be much of a task. 112— What Causes Mistakes? The operator tries to make the correction but fails to do so. Puts it off until some other time, depends on memory and forgets. Makes the correction on the proof sheet but not on ledger and bill or statement. Makes correction on proof sheet and bill or statement but not on ledger. Makes correction on bill or statement but not on ledger or proof sheet. The error is such that the operator thinks it easier to rewrite the entire ledger and bill or statement rather than correct them, and does not rewrite them accurately. Inserts a slip in the ledger as a memorandum to make correction later, the slip is lost and the error is not corrected. Erases the error on the proof sheet and destroys all means of proving what was done and all means of checking the work later. Doesn't know how to make the correction, but attempts it just the same. Is uncertain whether the correction was made or not, but doesn't take the pains to ascertain definitely then and there. Operator balances run totals before writing the totals on the proof sheet instead of writing the totals first and balancing afterwards (see Section 95.) Operator copies run totals with actuator set to "add" instead of set to write "totals" (see Section 95), and copies Balance total out of the crossfooter register instead of out of the Balance column register. Operator makes part or whole of some entry with the adding register or the crossfooter inoperative and computes mentally. Operator doesn't complete each task separately and has tickets, correction sHps, etc., scattered about desk. Too much of operator's time consumed doing other people's work. Operator not responsible for locating own mistakes — other clerks doing it for her. 108 Bookkeeping by Machinery Office control is poor. Control figures are changed after operator has proved against control total. Operator tries to attain speed greater than is consistent with accuracy. Operator in starting a new ledger page fails to bring balance forward to next page correctly. Operator transfers live ledger account. Operator is not careful to register ledger and bill or state- ment and records an entry back (over some previous entry) of the last entry on the ledger — last bill or statement goes out correctly but last amount on ledger sheet is not the balance. Last month's trial balance figures changed without noti- fying the Bookkeeping Machine Operator. Operator doesn't indicate credit balance properly. Operator brings down old credit balance as a debit balance or vice versa. Operator doesn't show sub-totals on the bottom of each proof sheet. Operator doesn't balance her day's work carefully each day. Operator doesn't transfer filled ledger sheets promptly and lets them accumulate in the binder with live accounts, and posts some items to a ledger sheet that should have been transferred. Operator doesn't number the ledger pages and posts an item back of the transferred balance (see Section 114). Operator doesn't use the machine correctly; starts with registers not clear; backs partly into a register to rewrite a figure; throws figures foreign to the work into the machine while work is in progress; erases and rewrites figures that have already been registered. The employer provides proof sheet facilities but the opera- tor does not use the proof sheet properly. While the list above may seem a formidable array of errors that might happen, the proof sheet quickly shows them up and classifies them in detail. It is as nothing compared to a catalogue of common mistakes in hand bookkeeping or where machines are used to do the work at separate operations. There can be no efficient bookkeeping without the proof sheet. CQ -Si en ^ ^ I Elliott- Fisher The Bookkeeping Machine 111 Chapter VII GENERAL INFORMATION 113 — Different Colored Carbon Convenient for Reference In department and retail store work where there are many items crowded closely together, the complaint is sometimes made that it is difficult to see quickly just where one month ends and the next month begins. Quite frequently the operator forgets to write the name of the month at the start of a new month's posting. This makes it difficult to determine what month the record covers. These troubles and complaints do not arise where proper care is used, but in large departments it is often difficult to keep everyone under control — and in small institutions it often happens that those in charge are too busy with other things to watch the details. There is a way which prevents this kind of trouble, viz.: Use a different colored carbon paper over the ledger sheet each month. (See illustration on page 116.) For example: February posting to the ledger is done through blue carbon. March posting to the ledger is done through purple carbon. April posting to the ledger is done through black carbon. Black, purple and blue will be found sufficient in all ordinary cases to make decided contrast between each month's work and to bridge over inactive months when some customers may not purchase. By this arrangement anyone using the ledger for reference purposes can see at a glance what constitutes each month's record. The difficulty of changing carbon sheets or carbon rolls at the beginning of each month is nothing compared to the time saved during the month. Purchases as well as payments during the current month stand out in contrast to those made during the preceding months. 114— Transferring Filled Ledger Sheets When a ledger sheet is filled it should be taken out of the current binder and transferred. It should be done the day 112 Bookkeeping by Machinery the amount is carried forward to a new ledger sheet. When it is transferred the bookkeeper proves the entries thereon from the last trial balance and sees that the correct amount is forwarded to the new ledger sheet which takes its place. There should not be any occasion to refer to the transferred sheet in balancing. If there are reasons for keeping the dead ledger sheet in the current binder until the end of the month, then it should be turned upside down, so it cannot be mistaken for a live account. Regular reverse ledger sheets or those punched for binding on both sides can be turned upside down to distinguish from Hve accounts. Tumble form ledger sheets cannot be turned upside down because one side is always upside down. They can have a heavy pencil line drawn from upper left-hand corner diagonally across the page to the lower right-hand corner. Leaving dead ledger sheets in the binder until the end of the month is dangerous. When the bookkeepers get busy the first of next month they may neglect to transfer the dead accounts. Ledger sheets should never be marked Sheet No. 1. One side should be marked Page No. 1 and the reverse side Page No. 2. Then there can be no doubt as to which side was first and no time is ever lost to know where the postings begin and end. These are important details which help in getting the de- sired results of "nothing-to-do-at-the-end-of-the-month-but- mail-the-bill." 115 — Round Corner Ledger Sheets Round corner ledger sheets are most desirable for Book- keeping by Machinery. Round corner ledger sheets slide easily under the carbon. Round corner sheets do not turn up at the corner. Round corner ledger sheets are more easily handled. Round corner ledger sheets don't catch on carbon paper. Round corner ledger sheets are most efficient. Elliott-Fisher The Bookkeeping Machine 113 116— Monthly Bill Coupon Bookkeeping by Machinery makes it possible to use what is known as the coupon-head bill illustrated on page 115. The coupon portion of the bill is returned by the customer when remitting. This obviates returning paid bills, envelopes and postage expense. The coupon portion, which has been returned by the customer, illustrated on the same page, is used by the book- keepers as a unit cash posting medium. This eliminates the possibility of misreading the name on a poorly written cash ticket. 117 — Collection Department Information Use of bill stubs as illustrated on page 115 provides the Col- lection Department with the desired unit information about each and all accounts instantly at the end of the month. These stubs enable the Collection Department to follow up all delinquent or questionable accounts promptly. Standard Two Post Binder 118— Physical Make-Up of Ledger Illustrated herewith is a standard loose leaf ledger binder. One ledger binder may constitute a complete ledger, or only a complete ledger division. One ledger binder may be only a part of a complete ledger, or only a part of a complete ledger 1^^ 114 Bookkeeping by Machinery division. For example: One ledger binder might contain all the accounts from A to Z, or one ledger binder might contain only accounts in a complete division A to C, or a ledger binder might contain only the B portion of the complete ledger division A to C. (See Section 34.) 119 — Kinds of Ledgers There are various kinds and makes of loose leaf ledger binders. There is also the card ledger handled in different ways — in trays, boxes, or by other means. Some business houses prefer loose leaf ledgers; others have a preference for card ledgers. Elliott-Fisher The Bookkeeping Machine will operate in connection with any standard loose leaf ledger or any card ledger. Some forms of loose leaf ledger binders and certain card methods are, however, better for Bookkeeping by Machinery than others. Freak designs of loose leaf ledgers place a great handicap on Bookkeeping by Machinery and should be avoided. 120— Solid-Hole Punched Ledger Sheets The business world has been educated to standard sectional two-post loose leaf binders which compress the sheets between the covers, regardless of the number of sheets in the binder, for security in keeping the leaves in place. Elliott-Fisher The Bookkeeping Machine is used to best advantage in connection with the standard sectional two- post loose leaf binders with solid hole-punched ledger sheets. The strong feature of these binders for Bookkeeping by Machinery is that in operation they lie flat on the desk or pedestal beside the operator's machine and the sheets with solid holes are held on posts and cannot be removed from the binder and taken away. As the binder lies flat there is no possibility of any sheets flopping backward or forward and on that account becoming misplaced. For reference purposes the binder lies flat, opens and reads like a regular book, from left to right. The standard sectional two-post binder and standard solid- hole punched ledger sheets are most economical and durable; Elliott-Fisher The Bookkeeping Machine 115 •« FEB l^-./^ «« ti.sz. ::: 7^7^ ; JUL AUO ' SEP Al OCT SB NOV MRS H C GILSON , 93 MARKET ST CITY , .. «}■ 15 76 72M . ley ' iJ 2U 55 26M 630 1 12H . ■J 5U 05 22VII < * 36 55 63F ' • «} H6 55 651 \ w"^:w^ i 1 BLOUSE I 29 1 BOYS SUIT 7 50 1 KIMONA 6 75 1 MECHANICAL TRAIN 2 25 1 BOYS CAP 50 1 SHIRTWAIST 1 PR SHOES 1 PR GLOVES 34 05 36 55 U6 55 1*9 05 Monthly Bill with Coupon Bookkeeping by Machinery makes it possible to use what is known as the coupon-head bill illustrated on this page. The coupon portion of the bill is returned by the customer when remitting. This obviates returning paid bills, envelopes and postage expense. The coupon portion, which has been returned by the cus- tomer, is used by the bookkeepers as a unit cash posting medium. This eliminates the possibility of misreading the name on a poorly written cash ticket. The stub shown on the left is used for collection purposes. The account is analyzed and notation made of overdue amounts opposite the proper monthly headings. 116 Bookkeeping by Machinery f ,.«.o 5 ~A «At.«G NAME MRS H C GILSON ADDRESS 93 MARKET ST ^^^^ ^^ »....»« ' ■■■■■ c»...„ ..,.,„ 1 >.^.c. \- BALANCE fORWARO 3U 25 ■} H C CILSOf » 51* 25 esM 7 I MISSES DRESS U 00 58 25 » H C 6"-SoC % » 36 25 ja« 9 1 BLOUSE 99 39 2U * H^LSOI » 59 2M 12 CASH 3U 25 U 99 » U99 23N 16 NEEDLES PINS 10 09 1 6ir 1 PR SHOES U 50 1* 69 968 » H C GILSol J> 968 U9r ao I PR HOSE 1 00 10 68 » H C GILSoi » 10 68 92C 23 2 YDS LINING 25 50 1 130 TOOTH POWDER 19 69 U 57 »H C CILSoj » U 57 83G 27 PLAYING CARDS 2 DOZ PAPER NAPKINS 20 10 30 11 67 » H C GILSO » 11 67 631. as 1 PR GLOVES 2 50 IV MAR 1 PR SHO£S 5 00 7 50 X9 17 » H C GILSO »> 19 17 U8S « 1 SKIRT 5 00 21 17 » H c ciLSn * 21 17 72C 6UT « 5 YDS CAMBRIC 15 1 Xai HAPKINS 75 2 00 91P 1 007 SPOONS 1 60 \ 55 25 72 » M C GILSO » 25 72 9 CASH 15 00 10 72 » H C GILSO 5» 10 72 gip 11 1 DOZ SPOONS RETD 1 60 e 92 » M C GILSO » e 92 51S 15 1 PETTICOAT 3 75 12 67 » M C GILSO 12 67 25» APR I SHIRTWAIST I COLLAR 2 59 SO 3 09 . 15 76 » H C GILSO > 15 76 72M 2 1 BLOUSE 1 29 18Y 1 BOYS SUIT 7 50 8 79 2U 55 t, 1, C GUSOl 1} 2U 55 28M 83G U 1 KIMONA 1 MECHANICAL TRAIN 6 75 2 25 @ » 12H 1 BOYS CAP 50 9 50 3U 05 » "JliLSOl ft H lip LSD. > 5U105 22W 10 1 SHIRTWAIST 2 50 36 55 J 36 55 63F 15 1 PR SHOES 10 00 46 55 » H C GILSOI > U6 55 65L 23 I PR GLOVES 2 50 U9 05 «• H C GILSOI V ~ __ ,o..>.o....,o-Tm.„ ,.,-«., 5=rK=r y Ledger Sheet, Showing Distinctive Colors for Different Months Ledger account with Mrs. H. C. Gilson, showing her purchases and credits for February, March and April. Note the three colors of carbon paper used. These clearly define each month's account, prevent errors and save time when referring to the account. Elliott-Fisher The Bookkeeping Machine 117 SHEET NO } GE TO C L APR L U 191a 1027 53 6R0UGMT FO>«*AH0 321 8U 15U9 37 23 U 620 I MISSES D«SS U 89 28 05 » T J GIACOMA m. 2I» 50 PC CASH 10 00 U 50 1} R M GIBBENY 19 23 27W I WAIST U 85 2U 08 H H J GIBBONS ® 2U 08 27W 1 WAIST RETO 3 25 20 83 n H J GIBBONS • 9 69 12T I TABLE CLOTH 2 90 I CAKE SOAP 25 5 15 12 eu » M S GIBSr ^ 56 18 828 1 SET OICKENS WORKS 12 50 68 68 D- M GIBBS U5 62 FC CASH hS 62 00 » R W GIBBS * 15 26 12G 2 MENS SILK HOKES l|9 98 16 2U n L M GIBONNS • 56 72 150 1 COFFEE SET 98 1 CAKE PLATE 98 21E I MALINE MAT U 50 6 U6 65 18 * R GIBSON 65 18 PC CASH 35 00 28 16 R GIBSON • 8 6} 27W 1 WAIST 1 95 10 58 * S M GIFFANTI • 1.1 67 93c I DINNER SET 17 98 59 65 «> J K GIFORO ^ 59 65 lUF 1 PR SHOES RETC 7 50 52 15 a J K GIFORO ^ 8 75 12H 1 ORESS SMiRT 2 50 9 1/2 OOZ I'NEN HDKFS I 25 3 75 12 50 f> GEO GIGNAULT ® 55 20 PC CASH 15 00 20 20 » A B GILBOr <& 2U 55 28M I KIMONA 6 75 1 MECHANICAL TRAIN 2 25 12H I BOYS CAP 50 9 50 3U 05 •J- " C 6ILS0N • 15I43 58 TOTALS 587 85 116 37 1815 06 15U5 58 PROOF 587 85 116 57 1815 06 » Proof Sheet Proof sheet of charges and credits posted April 4th. All accounts affected are shown with the customers' names. At the bottom are totals of old and new balances, as well as totals of charges and credits to this particular ledger for the day. Elliott-Fisher The Bookkeeping Machine 119 they may be secured from any good stationery or loose leaf supply house anywhere. Solid hole ledger sheets cannot be misplaced or lost except through gross carelessness. The standard sectional two-post binder of good grade containing solid hole ledger sheets keeps its shape and appearance no matter how it is handled. The solid-hole punched ledger sheets, the standard two- post binder and The Bookkeeping Machine always produce TLl- ~n rTTTTTT Posting Bar placed hack to hack with the Ledger satisfactory results. The successful combination of the three, by means of the posting bar, is shown in the illustrations here- with. In the first picture you will see the posting bar placed back to back with the ledger, from which the cover has been removed and laid to one side. As the operator posts, the sheets are removed from the regular binder posts and placed over the tapered posts of the posting bar, as is shown in the second picture. The binder is a regular post binder; the sheets are the standard solid-hole punched ledger sheets. When the operator has finished a run of postings, all of the sheets which are on the binder posts, as in the first illustration, have, of course, been handled and are on the two posts of the posting bar. Now note that (in the first illustration) the metal piece on which the two posts of the posting bar are mounted is a imiiij Showing part of sheets on Posting Bar Posts little longer than the board is wide. When the sheets have all been turned over on the posting bar posts, one grasps all of the sheets and the ends of this metal strip in both hands and lifts it all off the board. The whole mass of sheets and posting bar posts are then turned over the binder. The tops of the 120 Bookkeeping by Machinery tapered posting bar posts are inserted in the hollow tops of the regular binder posts; then the whole mass of ledger sheets slide down on the regular binder posts. The posting bar is TiTTTrr Returning Ledger Sheets to Binder removed and the binder top cover is placed into position and locked. This posting bar arrangement is most satisfactory because the posts while being used are held in a rigidly upright position. There is nothing wobbly about it so there is no difficulty in placing the sheets rapidly over these posts. The binder and board both lie perfectly flat so there is nothing to reach over and nothing inconvenient in operation. Sheets are used in the regular way, the headings are in their natural position and everything is in direct line of vision. When the work is all done it takes less time to put all of the sheets back in the regular binder and put the cover on than it takes to tell it. The regular solid-hole punched sheets can't get out of position. The binder retains a neat appearance. The solid hole sheets cannot be lost from the binder; they are not taken away; they are not misplaced in position during posting ; if anyone desires to see an account the binder is taken instead of removing a sheet. For reference purposes the binder has all of the safety and security of the bound book, plus all of the convenience and economy in stationery and operation of the standard loose leaf ledger. 121 — Speed Is Measured by Accuracy When a business house contemplates putting on another hand bookkeeper, the applicant is never asked "How fast can you post?" Rapidity in hand-posting is never thought of Elliott-Fisher The Bookkeeping Machine 121 (never has been) — accuracy is the principal consideration. The applicant must be reliable, for safety is what the business house wants first, last and all the time. Perhaps after the applicant has become an employee he may sometimes be spoken of as a fast bookkeeper. Speed in this case has reference to a bookkeeper who does his work carefully and accurately and has a correct trial balance without delay. The hand book- keeper who balances, proves and finishes the month's work promptly is considered a good hand bookkeeper because he does his work well and finishes on time. In Bookkeeping by Machinery, speed is judged the same as it is in hand bookkeeping; that is doing each day's work so carefully, thoroughly and accurately that there will be no delay in balancing and finishing at the end of the month. Elliott-Fisher The Bookkeeping Machine properly operated is the fastest known way of doing accurate bookkeeping be- cause it makes the ledger, bill or statement and proof sheet all at one simple, easy operation. Furthermore, if the operator does make a mistake it is detected instantly and by means of the proof sheet can be quickly located and corrected and the day's work positively balanced, so that there are no mistakes to hunt for at the end of the month. Speed in Bookkeeping must be judged by the amount of accurate work completed and not by hurried operation. Index Section Accounting Records 2-5, 10, 11 Accounts Payable 9, 10, 12 Accounts Receivable 6, 12, 13 Accuracy 121 and page "To the Operator" Adding 57,60,61 Alphabet Letter O Key 67, 71, 75 Audit by Departments 13, 32 Balances 20, 59, 63, 68, 72, 83, 86 Bookkeeping, Rules for 12 Bill (or statement). . .. 1, 4, 24, 111, 116 Binders 118,120 Carbon Paper 113 Cash Payments 11, 12, 13, 16, 23 Clear-Signal 45, 46, 56 CO. D 32,38 Collection Department 117 Complements 59, 76-80 Control 5, 12, 31-38, 52, 54 Corrections of Errors 97-112 Coupon, Monthly Bill 116 Credits, 12, 13, 15-17, 23, 28-30, 46, 91-94 Crossfooter . 21, 45, 46, 51, 54, 55, 56, 60 Debits (Charges), 12, 13, 14, 17, 28-30, 87-90 Examples 59, 61, 65-82, 87-94, 108 Errors 82,97-112 Figures 63 Flat Writing Surface 84 Forms 85 General Information 113-121 Information, Collection Department, 117 Journal 3, 11, 17, 23, 37, 107 Keys 62,66-81 Ledgers Bank 12 General 5 Definition of 2 Itemized 8 Departmental 3, 10 Kinds of 119 Loose-Leaf 18, 115 Material 10 New 22 Old 21 Others 11 Physical Make-Up 118 Private 11 Purchase 5, 9 Public Service 11 Section Ledgers Retail 8 Sales 6,8 Sheets 114,115,120 Skeleton 7, 12 Stock 11 Wholesale 7,12,25 Without Statement 25 Letter O Key 67, 71, 75 Loose-Leaf Records 18 Mechanical Operation 39-96 Non-Print Keys 62 Numeral Key 66, 69, 70, 73, 74 Oblique Type 63 Operation, Mechanical 39-96 Operation of Posting 86-94 Posting, 1 1-14, 16, 19, 23, 28, 29, 30, 32, 46, 86-96 Posting Medium Units .... 2, 14, 19, 20 Principles of Accounts Receivable Routine De- scribed 13 Bookkeeping by Machinery 1 Control 31 Machine Operation 46 Proof Old Balance 20,27,34 Work 12,26,95,96 Posting to Right Account 86 Proof Sheet. 4, 23, 25, 46, 97, 98, 106-110 Registers, 21, 27, 39-45, 46, 47, 49, 50, 53, 55, 60 Rules. . 12, 48, 59, 64, 83, 95, 96, 97, 100 Sales Tickets 8, 13, 32, 34 Shift Key 81 Sorting Desk 13 Speed ....121 Star Clear Signal Printing Device, 45, 46, 56 Statement (or Bill) . . 1, 4, 24, 25, 26, 111 Stops 47,49,51,54 Stuffing the Ledger 19 Subtracting 57, 58, 60, 61, 64, 65, 80 Tabulating 48 Totals 20, 27, 34, 40, 95, 96, 109 Transfers 1,21,37,114 Trial Balance 1, 12, 21 Vendors' Accounts 12 Writing, Adding and Subtracting, 57, 58, 60, 61 Writing Surface 84 THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO 50 CENTS ON THE FOURTH DAY AND TO $1.00 ON THE SEVENTH DAY OVERDUE. JAN 16 IB'ife Aua 22 194T JUL 3 a 194G SEP Q^^ ;?> . ,1: ^?>{ ^ mi j JL 2g \937 OCT 2g 193; f!iar'49W ; M iS:: "^sT^nr^ MAR 1 APR 32 1S39 SEP 181940 LD 21-100jn-7,'33 II y-C 2A806 .n<) «i» UNIVERSITY OF CALIFORNIA LIBRARY I