msim ^SSM Business -STANDARD Book-Keepiog WWIWIWIWWlM)- sO 00 CO CD MiM- ^.i*i LIBRARY OF THE University of California. Received ^ ;^^. , i8gg' . Accession hJo,6 // 3 ^^ . Class No. Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/businessstandardOOplumrich The Business-Standard System of Double-Entry Book-Keeping Using Only One Book of Accounts- By O. M. Plumb. Copyright, 1886, by Cowperthwait & Co. PMladelpliia. GOWPERTHWAIT & Go.'S EdDGATIONAL SeRIES. The following List of our most Popular Books contains only such as have proved most satisfactory in actual use in the School-Room. IMON'ROE'S Readers and Spellers. M:0NR0E'S IN^ew Series of Readers. M:0NR0E'S I^hysical and Vocal Training. M:0NR0E'S I^rimary Reading Cliarts. M:0N ROE'S Vocal Gymnastic Cliarts. ^V\r.A.RREN'S New Geograpliies. GrREENE'S Improved G-rammars. I>O^SVEIL.3L.'S Language Series. ^v 3r . Tlie Business-Standard Copy-Books. -A.I*GrARS' Greograpliical IDrawing-Book. A;I>I>LET0:N^'S Young Cliemist. ROYSE'S -A^merican Literature. BERARID'S N'ew United States History. GOODRICH'S Child's TJ. S. History. 11-A.GAR'S .A^ritlimetical Series. P^A^RKER'S A.ritlimetical Cliarts. Priee-Lists and Descriptive Circulars sent Free on Application to COWPERTHVSrAIT& Co., Philadelphia CONTENTS PAGE Prefatory 4 Definitions 7 Chapter I. The Nature of Accounts 11 II. Classification of Accounts 14 III. General Principles 18 IV. Opening the Book of Accounts 22 V. The Direct-Entry Book of Accounts 24 VI. The System of Checks 28 VII. Balancing Accounts 32 VIII. Closing the Book of Accounts 35 IX. Advantages of the Business-Standard System 41 X. The Book of Accounts Illustrated 46 Exercise ^ 1. A Simple Cash Account 49 2. Personal and Mdse. Accounts 50 3. Transactions for a Boy's Account 51 4. A Mercantile Series of Accounts 52 5. A Partnership Account 62 6. Transactions for a Farm Account 64 7. Transactions for a Mechanic's Account . . 66 8. Transactions for General Practice (Loss) 67 9. Transactions for General Practice (Gain) 68 10. Transactions for Gen. Practice (Partners) 70 Appendix 72 The Business Standard Blank-Book 79 PREFATORY. The Business-Standard Book-Keeping is in- tended to serve tliree purposes: (1) To provide pupils of District and Grammar Scliools with, a simple and serviceable Text-book, (2) To supply teachers and young" business men with a complete and intelligible Self-instructor. (3) To offer, for general use in keeping accounts, one easy and adequate form which everyone can readily understand, and which will meet all com- mon needs. The Held is wide, and at present seems unoc- cupied. To successfully accomplish these purposes, a book should possess the following merits : (1) It must contain all the essential elements of the *' Written Language of Commerce." (2) These must be communicated in a manner . so intelligible that even the uninitiated can readily apply them to the narration of any ordinary busi- ness event. (3) Instead of furnishing mere illustrations of the diversified and conflicting history of past ex- periments in accounts, the work should embody the result of such experiences in a simple method which will prove to be a safe model and serve as a practical guide. How far these ends have been attained it will not be difficult to determine after a careful examination of the work itself. ** I have always believed that I ought to learn hook-keeping in an hour " said a literary friend. He only gave forcible expression to a common sentiment that the science of accounts has been needlessly involved. Buying and selling are the most common inci- dents of life, and are universally understood even by children and the uneducated. Why need the recording of these transactions be made compli- cated and difficult? When a boy can go upon the street, and, almost without education, gain a support by means of buying and selling, why may he not, with some slight and simple training, keep an intelligible record of his dealings? The science of accounts is, in fact, exceedingly simple and exact. The Art of Book-keeping may be readily acquired, is easy of application, and uni- form and satisfying in results. Yet intelligent observers admit, what most busi- ness men believe, that book-keeping as a branch of common-school study has proved a failure. Nor are teachers, as a rule, satisfied with results in this branch of study. The great difficulty has been the want of a text- book that presents in a clear and orderly method free from the emharrassing confusion of a great variety of forms the few simple principles upon which rests the Art of Keeping Accounts. The Author believes it possible to clearly impart 6 the essential principles of accounts in a few easy lessons, and that every child who can be taught writing" and arithmetic is capable of keeping, and should be qualified to keep, an accurate set of books. It is a species of imposition to compel the student in accounts to wade through and copy worse than useless *' single-entry" forms and tiresome varia- tions in imaginary methods. One perfect form suffices, and the simplest and easiest form of in- telligent business record is the best. It is confidently believed that the Direct-Entry Method here proposed, with the Simple Cash-Book Form and One Book of Accounts, will not only prove most effective as a means of imparting a knowledge of accounts, but will also best serve the general requirements of most business uses. The fact that one or more in every hundred per- sons may desire more complex methods than the *' Single Book of Accounts" affords, does not lessen its value for the ninety or ninety-nine for whose use it is suggested. C. M. P. DEFINITIONS. Account. A systematic statement of debits and credits. Written Acct. or %. Account Current. An itemized statement of a running account between two or more parties, showing tlie balance due. Advance. Money paid to a consignor of mer- cbandise on account of sales to be made; or be- fore tbe delivery of goods. Assets. Available means for payment of debts ; goods, estate, and indebtedness of otbers. Balance. To close an account; difference be- tween debit and credit sides of an account; an account into wbich. balances are carried. JBiLL An itemized statement of goods sold. Ttie term is also applied to notes and drafts. Bill of Ex change. An order for the payment of money; usually applied to foreign drafts. Bill of Laxi ing. A receipt from a vessel or trans- portation company for goods received for convey- ance, containing a description, or marks and num- bers, and an agreement to deliver to the consignee named therein. Capital. Property employed in business. Check . An order on a bank for money. Consignment. A slrLpment of mercliandise or goods to be sold on the owner's or consignor's account, not purctiased. Days of Grace. Three days allowed for pay- ment after a note or draft becomes due. Discount. An allowance made on an account or debt, or interest deducted in advance. Draft. A n order from one person on another for payment of money. The "drawer" is the one who signs it; the "drawee," the one on whom it is drawn, or the payee. A sight draft is payable on presentation. A time draft or note is payable at a certain specified time "after date" or "after sight." Acceptance of a draft is writing across the face— preferably with red ink— the word "Accepted," with the name of the ac- ceptor, and usually where it is to be paid. The face of a draft is the amount for which it is drawn. Form of Draft. days after date pay to the order of A. B. $ , value received, and charge to the account of. To Order. Notes, drafts, and checks are usually written "Pay to the order of " When indorsed "in blank" —that is, with the name onlj^— they become payable to the holder. .In. Favor of. A note or draft is said to be in favor of the party to whom it is to be paid. To Indorse. To write one's name on the back of a bill; to become obligated for its payment. To Indorse in Full. Write " Pay to the order of., and sign the name. Entry. A record made in an account book. Ex. Out of; as, "Ex. Str. Servia," out of the steamer Servia. Used to indicate by wliat vessel goods were received. Honor, as applied to drafts, • means to accept and pay when due. Inventory. A detailed account of property. Invoice. A hill of merchandise houg-ht or sold; an inventory of goods consigned for sale. Liability. Obligation to pay. An indorser of a note is liable to be called on to pay it if the maker fails to do so. To transfer a note without this lia- bility, write "without recourse" after the name. Liabilities. Debts of an individual, or claims against him. Merchandise. A general name for goods bought and sold. (Written Mdse.) Note. A written obligation to pay money. The '* maker" is the person who signs it;, the "payee" is the one to whom it is to be paid; the "holder" is the one who has legal possession of it. Form of Note. days after date I promise to pay A. B. or order at $ , value received. Maturity. The time when a note or draft becomes due. A Negotiable Note is one payable to order or to bearer. A Non- Negotiable Note is one in which the words "or order," "to the order of," or "or bearer," or their equivalent, are omitted ; so that the promise to pay is only to the person named. 10 Order. A written request for the payment of money or delivery of something. * Policy of Insurance. A written contract given by the insurer to the insured. Premium. Money paid for insuring property. - Protest. A formal legal notice by a notary public that a note or draft has not been paid. Real Estate. Houses and land. Other or mov- able property is termed *' Personal." Resources. Any species of property having value ; effects or assets ; money on hand and debts due. To Credit. To trust; to enter upon the credit side, or in the right-hand column. To Debit. To charge, or to enter upon the debit, or left-hand, side. To Discount. To deduct interest for the un- expired time of an obligation for payment of money, and to pay the remainder. Voucher. A document or paper proving that some payment has been made, or other trans- action effected. CHAPTER I. THE NATURE OF ACCOUNTS. 1. Book-keeping is the art of recording" transac- tions where there is a change of ownership in values, or in what represents value. 2. "Accounts" are, in a general sense, the or- derly records of these transfers of value. 3. The transactions themselves are known as Buy- ing, Selling, or Excliange. 4. Every transaction representing the change of ownership in any property is tivo-fold—tYidbt is, it concerns two parties; hence, "Double Entry" is the natural method of keeping accounts. 5. In the sale of goods, for example, there must be Si seller ^ by whom something is delivered or the promise of delivery made; and a purchaser, by whom something is received. 6. Every person or thing with whom a transac- tion is made takes from or adds to the business; is benefited or confers a benefit. In other words, every transaction adds an amount to some one account and takes it from some other. 11 12 7. Every entry of a business transaction, there- fore, when fully recorded, is a double entry, or consists of an entrj^ to the debit of one account and to the credit of another. That is, for every debit there is a credit of equal amount. 8. Consequently, every account has two sides, called Debit and Credit, written I>r. and Cr. I>r, always refers to the left-hand side, and Cr, to the right-hand side, of an account. 9. The Debit side of an account is that on which is entered any item of value given to or for that account. The Credit side is that on which is recorded any value received from tha t acopu nt. 10. A Debtor is one who owes the business. (Writ- ten Br.) A Creditor is the opposite, or one to whom some- thing is due from the business. {Written Cr.) 11. These relations of debit and credit may exist with things as well as with persons— that is, a stock of goods, a fleld of a farm, the product of a factory, a sewing-machine, a horse, or a ship be- comes indebted for the first cost and expense of maintenance or improvement. It is credited with any income derived therefrom, any increase in value, and the price when sold. A farm becomes a debtor for its cost or any im- provement added. It becomes a creditor for the value of any crop it produces. 13 12. Let it be remembered that value exchaxiged is tbe basis of all book-accounts. In every transaction, real or supposed value is given and received. 13. Tbe value wbicb goes out is eitber for tbe benefit ^ (1) some person wbo, not paying at once for it, becomes a debtor, or is given (2) for some equivalent property, or (3) for some account rep- resenting gain or loss; and tbat property or account becomes debtor. 14. Tbe value wbicb conies in is eitber (1) from some one wbo, not being at once paid, becomes a creditor, or (2) is paid for by means of some otber property, or (3) by some account representing gain or loss; wbicb property or account becomes cred- itor. 15. The matbematical principle of equality gov- erns all mercantile entries. Every debit has a credit and every credit has a debit of equal amount. 16. It therefore follows that at any moment the sum of all the debits of a true record must equal the sum of all the credits. CHAPTER II. CLASSIFICATION OF ACCOUNTS. 17. A Personal Account is the record kept with an individual (or firm), showing the relations of that person to the business or his dealings there- with. 18. An account may also he kept in the name of any thing that has value or represents value, that causes an outlay or is a source of income. 19. Cash is the account of all moneys received and paid out, in whatever form they may he held. This account may be considered as standing for the safe or drawer where the money is deposited. 20. All moneys received are placed to the debit of Cash, to its credit all moneys paid out. The difference shows the balance on hand. 21. Bills Receivable is the account of all notes and acceptances due the business, or other people's promises to pay. 22. Bills Payable is the account of the proprie- tor's notes and acceptances which are to be paid. 23. Merchandise is the customary name given to the account representing goods of whatever name or character. Each item of merchandise purchased and re- ceived is placed to the debit of Mdse. account; each sale, to its credit. 14 ^^ UNIVERSITY 15 Merchandise account may be regarded as stand- ing for a person to wliom the goods are entrusted or for the shelves whereon they are stored. The account is debited when the goods are placed there, credited when they are removed. 24. Merchandise Account may be subdivided to represent any specified portion or kind of goods. Such division as, for example, into Flour and Grain accounts, or Dry Goods and Grocery ac- counts, facilitates the estimate of profits upon any branch of the business and a knowledge of the stock on hand without an Inventory. 25. In entering purchases the entry can be made " as per bill," omitting the items. The bill, kept on file, will always supply these. 26. In entering sales the items should be re- corded for complete information and as full legal evidence of the transaction. 27. Where real estate is owned or forms a por- tion of the capital or investment, an account of that name should be opened and kept. P The debit side will show all that it has cost, in- j eluding interest, taxes, etc. The credit side will show any increase from rents or sales. 28. The cost of buildings or permanent improve- ments is charged to Real Estate Account. Rent, Insurance, and ordinary repairs may go either to this account or to a separate account opened for each one or for all of these. IG 29. To the debit of Expense Account place all amounts paid out for expenses. This account may be divided into Office, Personal, and House Expense if desired. Also for minor items such as Rent, Labor, Material, Postag'e, etc. The separated accounts can be aggregated under General Expense account at the end of the year. Any moneys received or returned from expense accounts go to the credit side. 30. In a similar manner minor sources of profit or gain, such as Commission, Salary, Investment, Crops, etc., may each be specified under special ac- counts to any desired and practicable extent. 31. It is better to open a new account for any new department of cost or profit if any doubt arises as to the propriety of entering the item under any existing account. The new account can be transferred to General Expense at any time, or closed to Profit and Loss, as will be seen in another chapter. 32. Stock or Capital Account is the term gen- erally used to represent the personal interest of the proprietor in the business or the value of the business itself. It is, in efi'ect, a summary of other accounts : the debit shows the Liabilities, the credit the Resources, or what is possessed in the business. 33. Where there are rartiters, Capital acct. is sub- divided to represent the proportionate interest of each. That is, "A. B. Capital % " and " C. D. Capital %," etc., will together include the total value of the 17 business, in equal or unequal sliares, according to tlie terms of copartnersMp. 34. Accounts may be classified as Real and Rep- resentative. Real Accts. are tbose kept with, persons or with, thing's which have a fixed or determined value — with realities' They exhibit, on the one hand, actual Resources or Assets, and on the other Lia- bilities or Indebtedness. Cash, Bills Fay able, and BUls Receivable are Real accts. ; so also are all property accts. covering per- manent investments not bought and sold for profit. 35. Representative Accounts are such as rep- resent the Grains or Losses of the business ; as, Mer- chandise, Hardware, Grain or Farm account, In- terest, Commission, Expense, or any account stand- ing for a source of income or expenditure. Note.— This use of the terms "Real" and "Representative" is not strictly accurate, but it is the most convenient, and with a word of explanation need not be misunderstood. • The one class of accts. termed Iteal measures the worth, or financial standing, of a business at rest. Some authors designate these as ** Accounts of Finance.^' The other class of accts. represents the earning activities of a business or its progress in action. These have been termed ** Accounts of Business," Mdse. and other speculative or industrial accts. are "Repre- sentative" during the progress of a business, as they represent undetermined gain or loss. At closing, or at any fixed time, the value ascertained by in- ventory as on hand becomes an asset, and hence has a status under Real accounts. If this stock is again put in trade, it must be again classified as a working or accumulating acct., or "Representative." (See further under Chapter VIII.) CHAPTER III. GENERAL PRINCIPLES. 36. Books of Account should be accurately and properly kept, for three specific purposes: I. To give immediate iiiform.ation at any moment of the standing of a given account ; II. To readily determine the gains or losses of the business or any of its departments; in. To preserve a record of business transactions in a legal form, as evidence if required. 37. In making the record the first question is, What persons or accounts are the parties to the transaction ? The book-keeper is simply a faithful historian recording a transfer of value from some party or source, which by such transfer becomes Creditor, to another, which becomes Debtor. In every case such Creditor and Debtor must have an account name, under which the proper amount is to be registered. 38. The person or persons engaging in the busi- ness—represented by their Capital accts.— should be credited with the amount invested by each, or what values are possessed or risked in the business, and later with all gains or profits, divided in due proportions. The same accounts are debited with all amounts which are owed, or the debts on opening the busi- ness; also with all sums withdrawn at any time; and finally with any losses incurred in the busi- ness. 18 19 39. Real Accounts are debited witli what tliey receive from tlie business, and credited with, what the business receives from them. 40. Representative Accounts are debited with items of cost, expense, loss, or outgo, and credited with all receipts, income, increase, or enhanced value. 41. Cash Account is Dr, for all receipts of cash, and €r. for all payments. 42. JVla«ihandise, or any similar account, is Dr. for purchases, and Cr. for sales. 43. Personal Accts. are Dr. for what they re- ceive for which they do not pay, and Cr. for what is received from them, and unpaid for. 44. Bills Payable Account is Dr. for notes paid, Cr. f^r notes given. The time and date of payment of all notes given or received should be minutely recorded in the entry. 45. Bills Receivable is Dr. for the notes of others which are received, and Cr. for those paid or dis- posed of. 46. Expense Account is Dr. for all outlay on that account, and Cr. for receipts, if any, from the same source. 47. Capital Account is Dr. for all debts assumed and losses incurred, and Cr. for Capital invested and profits realized. 48. Generally, Debit what costs, the amount of the outlay, and credit the source from which the payment comes. Credit what produces, the amount realized, and debit that to wliich tne proceeds or benefit goes. 20 Or, concisely stated, debit what conies in, and credit wliat brings it in; credit wliat goes out, and debit what candies it out. Business has been called "a game of give and take." That which gives is Or., and that which takes is Dr. 49. When Merchandise is bought, debit Mdse. % with the amount of cost; and if it is not paid for, credit the seller. If paid for in cash, Mdse. is Dr., and Cash Cr. If paid for by note, Mdse. is Dr., and Bills Payable Cr. When the note is paid. Bills Payable is Dr., and Cash Cr. 50. When Merchandise is sold on %— that is, not paid for— debit the purchaser, and credit Mdse. If paid for in Cash, Cash is Dr., and Mdse. Cr. If paid for by note, Bills Receivable is Dr., and Mdse. ts Cr. When the note is paid, Cash is Dr., and Bills Re- ceivable is Cr. 51. When an account against the business is set- tled by the payment of cash, the account is Dr., and Cash is Cr. If paid by note, the account is Dr., and Bills Payable Cr. And when the note is paid, Bills Payable is Dr., and Cash Cr. 52. "WTien an account due the business is paid by the receipt of cash, Cash is Dr., and the ac- count Cr. If paid by note, Bills Receivable is Dr., and the account Cr. When the note is paid, Cash is Dr., and Bills Receivable Cr. 21 53. If interest accrues on what is to be paid out, Interest is Dr., and tlie account Cr. If paid. Cash is Or. If it accrues on what is coming- in, that account is Dr., and Interest Cr. If paid. Cash is Dr. If interest accrues on a note given. Interest is Dr., and Bills Payable Cr. When paid. Bills Pay- able is Dr., and Cash Cr. If it accrues on a note received. Bills Beceivable is Dr., and Interest Cr. When paid. Cash is Dr., and Bills Beceivable Cr. 54. In keeping- an account with a field, a crop, a shop or machine, a horse, or any other thing- or cause, the account is debited with all expenditures in the purchase, keeping-, working-, sale, etc., and credited with receipts, products, income, or any value received or accruing-. 55. Study carefully the nature of each trans- action. Every event to be recorded indicates some good gained, or, at least, recognized. The source of that good is Cr. The party, thing, or account benefited is Dr. Always the Dr. and Cr. are equal; also always the sum of the debits and the sum of the credits are equal. a^ CHAPTER IV. OPENING THE BOOK OF ACCOUNTS. 56. How to begin the record is the puzzling problem. Perhaps, If the business is that of selling goods, the first thought will be. Debit the purchaser the i9.rst bill of goods sold. But the sale is not the conrniencement of the business. Then credit the one of whom they were bought the cost of the goods? But does the purchase of goods begin **the his- tory of the business''? There must first be the means wherewith to com- mence business; therefore, 57. Open the Book of Account by stating the Capital or amount invested in the business, as follows : Credit Capital Account with the amount that is risked in the business— a fixed sum or the entire possessions, as the case may be. Let these items be entered in the exact form in which they are held — Cash, Mdse., Accounts, Bills Receivable, etc. It is customary to make this Proprietor's ac- count the first in the book. 58. If there are Associates in the business, let the credit entries to the several Capital Accounts represent the proportionate investment of each of the partners. (See 1[ 33.) 22 59. Debit Cash Account with, that part of Capital which, is money, in bank or drawer. Debit Merchandise with that part of Capital which consists of goods, as per inventory. Debit all Individuals with the amounts due from them, Bills Receivable, with, notes due the business, and Real Estate, or other forms of value^ to be kept separate, with the proper amounts. (Of course these items have been entered on the credit side of Capital Account.) 60. Debit Capital Account with the amounts of all Accounts Payable and Bills Payable. Credit each Individual Creditor With the amount due him, and Bills Payable with all Notes to be paid out of the business. 61. Thus stated, the two sides of Capital Account represent or express all that is possessed in the business and all that is due from it. The differ- ence shows the net value of the investment, or the actual Capital employed. 62. A ^^ Personal ^^ Account is usually kept, in addition, with the Proprietor or with each Partner, for the record of all items of personal debit or credit. At the end of the year such accounts are closed into the respective Capital Accounts. In the case of withdrawal of Capital by either Partner the entry is made direct to the Dr. of such Partner's Capital Account. (See Exercise No. 5.) 63. The Book of Accounts is now *'open" for the entry of the first business transaction— the purchase or sale of Mdse., the payment or receipt of Cash, or any transfer of value requiring record. Observe the general instructions given in IT 55. CHAPTER V. THE DIRECT-ENTRY BOOK OF ACCOUNTS. 64. The Principles of Accounts thus far stated, as well as those relating to Balancing and Closing, which follow in future chapters, are common to all Double-Entry Accounts, since principles do not vary. The methods of applying them, however, and the forms employed, are as varied as the peculiar- ities of different branches of trade. 65. It is impossible for the student to foreknow what exact form he may be required to adopt in practice when given employment by others. The study of a variety of forms at first tends only to confusion. Then, at least, if not ever and always, the simplest form is the best. 66. In the Business-Standard System One Book of Accounts only is employed, and that of the sim- plest possible form, for the simplest possible rec- ord, yet one ensuring all the necessary purposes required in ordinary business. 67. The ruling of this Book of Accounts will be seen by referring to the chapter of illustrations, and is familiar to all who have kept a Cash Ac- count. It will be observed that there are seven columns ; one each for the month and day, a wide column for the particulars of the transaction, and double columns for amounts; that is, a space for $ and one for cts. on both the Dr. and the Cr. side. 24 25 There should be an index in the front of the book or separate. 68. JDevote one page to each account. When the account is likely to be larg-e, leave several succeed- ing* pag-es blank. Write the name of the account at the top, with Dr, over the first, or left-hand, double column for amounts, and Cr. over the second, or rig-ht-hand, column. Then place the name and the number of the pag-e in the Index. For example: If the account is that of John Smith and his pag'e is twenty-seven, under S. write. Smith, John— 27* 69. To make the particular entry, write the year over the month column; then on the first line enter the month and the day. If the entry is upon the Dr. side, begin at the extreme left of the wide column with the word To, and make a full entry of the transaction, extending* the amount in the first, or Dr., $-and- cts. column. If the entry is upon the Cr. side, enter the date, then commence about an inch to the rig-ht with the word By, and enter the items in full as before, extending- the amount in the second, or Cr., $-and- cts. column. 70. Immediately turn to the proper opposing- account and make the corresponding- Dr. or Cr. entry in the same manner. 71. In selling- g-oods charg-e the Individual Ac- count first, then immediately give Mdse. Cr. When an amount is paid on account, Cr. the in- dividual, then immediately Dr. Cash. 26 72. When one transaction includes two or more items, the partial amounts should be "short-ex- tended "—that is, each item be set down at the right of the ** Transaction" column, a line be drawn be- neath the last, and the total extended opposite, in the proper Dr. or Cr. columns. (See Exercise No. 2.) Any number of lines may be used for the full description of a transaction, except in entries to Bills Payable and Bills Receivable Accounts, where each entry should occupy but one line. 73. In entering a note given or received, in Bills Payable or Bills Receivable Accounts, leave one blank line immediately following each item for the oppo- site entry when paid. This blank line is especially important in Bills Payable Account, as it calls attention to unpaid notes. If there are no blank spaces in this ac- count there are no outstanding notes. 74. The account of deposits with a bank should be kept on the stubs of the check-book. The amount remaining in bank being usually regarded as part of the "Cash on hand," no book-account with the bank is required. If for any reason such an account is preferred, payments by check will be credited to the bank instead of to Cash. 75. Minor items of Cash payments may be kept in a "Petty Cash-Book" and transferred to Cash and the other proper accounts in gross sums at the close of the day or week. (See final entry in Cash Account, Exercise 4.) 76. If the business is extensive, the Book of Accounts may conveniently be in two volumes, 27 paged continuously, the first volume to be devoted to Personal and Miscellaneous Accounts, the second to Cash Account and Mdse. or similar representa- tive accounts. This will facilitate making the opposite entries. 77. If an error occurs in entering* any item, it may he corrected hy making exactly the oppo- site entry. If A. B. has been debited $5 when he should have been credited, make a correcting entry to balance the error— that is, credit him By error, $5, Then proceed to make the proper entry in due form. Of course correcting entries must be made as complete as the original error. If the erroneous entry was completed—^, e,, made to both accounts —the correcting entry must extend to both ac- counts also. It is best to make correcting entries with red ink, to distinguish them from records of actual transactions. 78. If it is desired to preserve the amount of each day's transactions, a condensed or memoran- dum record may be kept of all entries to the sev- eral accounts as they are made each day. This record need include only the pages of the respective accounts, and the amounts, extended under the proper Dr. and Cr. columns. At the close of the day (or week) the columns can be footed. CHAPTER VI. THE SYSTEM OF CHECKS. 79. While every transaction requires two entries —a Dr. to one account, and a Cr. to another— both, of these need not in all cases be^made in detail. A minute description having* been made to one account, if the opposite account he Cash or Mdse,, the items need not be repeated. It is sufficient for these accounts that the total amount of each transaction be entered. (See illustration, Exercise No. 2.) 80. It is always necessary, however, that each entry shall be readily traced and identified— dis- tinguished from all others— for the correction of errors and accurate determination of results. This necessitates a system of checks, which, though very simple, requires to be carefully observed. 81. As the chief liability to error is a neglect to make the second entry, observe this rule: Soon as the record is complete ejcamine both en- tries ; and if found correct, with the amounts upon opposite sides of the respective accounts, place the number of the page of each opposing account verti- cally or diagonally on or near the second column ruling. This is the first check upon the record. 82. Checking. At the end of* each month, or, in a large business, weekly, begin with the ac- 28 29 count on the first pag-e, and check the first item, of the entries for the month. Turn to the page of the opposite entry ; and if it is found correct, check that item also. Proceed with the second item, and so on till all are found correct and checked. 83. This check-mark may be placed on the ruling" between the Dr. and Cr. columns. If any entries remain unchecked or the corre- sponding entry cannot be found, there has been an error or omission which must be corrected. The checking- of entries is imperative, as it gives assurance of correctness in the work. 84. The most perplexing transactions to record are those that may be termed compound— that is, where the amount of a single transaction is prop- erly divisible on one or both sides into two or more accounts. For example: A bill of goods, including freight and cartage, is paid for in cash. This will require a Dr. entry to Mdse. for the cost of the goods, and a Dr. entry to Expense Acct. for the freight. The Cr. entry to Cash may be in one item for the whole amount, or it can be separated in Cash Acct. and entered in two items to correspond with the Dr. entries to Mdse. and Expense. If not separated, the pages of both Mdse. and Expense Account should be noted opposite the Cash entry. Always make the entry intelligible, and note the pages of all opposite entries. 30 85. Illustrations of compound entries will be found in Exercise No. 4— Jan. 16, IT, and 18. I. Bills Payable Account is debited in one entry $100, wbicli amount is made up of a Casb payment of $96.37 and Discount $3.63. This entry is there- fore divisible ; but, being made in one item, there are two page-numbers, referring to Cash and to In- terest Accounts, and two check-tnarks to correspond. II. Likewise, on the 18th, a payment was made of $100 on Mortgage and $15 accrued Interest, The Cash entry, being on one line, requires two checks and the page-numbers of Real Estate and Interest and Commission Accounts. III. On the 17th, Mdse. was bought and a payment made, in part of Cash and part by Draft. Here the entry to Mdse. Account is divided, to correspond with the opposite items. 86. Comparisons are more difficult and errors can be less readily traced where entries are com- bined, as in the first two cases above cited. In Bills Payable Account a single entry is un- avoidable, as but one blank line is left for the closing entry for each item. (See H 73.) In Cash entries the division is optional. Accountants will soon learn how far it is wise to risk errors by combining entries to save space. 87. Entries to Cash or Mdse. Accounts (as sug- gested in 1[ 79) need include only the total amount of transaction, provided the opposite entry is itemized. The date and the page-number afford easy means for referring to the items, and of verifying the correctness of the entries. 31 If preferred, each item of Mdse. sales can be "short-extended" in Mdse. Account (see H 72), only the total amount for the day heing* carried out in the Cr. column. Kept in this way, Mdse. Account shows at a g-lance the total sales for each day. Observe the order of entry directed in T[ 71. 88. When it is desired to trace the success of a given line of goods, a special account may be opened (1[24), in which case the items of both purchase and sale can be fully detailed. In all ordinary Cash purchases, the accompany- ing- bill being" preserved, the items are not required in Mdse. Account (^25). Cash sales of Mdse. "over the counter" are g*en- erally aggregated in one item for each day, to cor- respond with the entries to Cash Account. If for any reason it is desired to preserve a rec- ord of the items, they either must be included in the entry to Mdse. Account, or a copy of the bill rendered with the goods should be retained. 89. In all systems it is usual to keep a rough "Blotter" or Sales-Book for the hasty or careless entries of business events as they occur, to be properly entered at the close of the day or when convenient in the regular book or books. For mechanics or others this is often necessary to ensure neatness of the permanent record. CHAPTER VII. BALANCING ACCOUNTS. 90. The Balance of an account means the ex- cess of one side over the other, or the difference necessary to make the two sides equal. If it is a personal account, the balance on the Debit side will show the amount the person owes. If the Credit side is the larger, the balance will show the amount due to him. 91. To Balance an account is to determine the difference between the totals of the Dr. and Cr. sides and to enter that difference upon the lesser side, then to add the columns and place the equal footings below. 92. To complete the record or to preserve the equality of the two sides, a corresponding entry must be made upon the opposite side of the same account after the footing is completed. This is called ^^ Carrying Down the Balance,^^ These two entries of the same amount— one upon each of the two opposite sides of the ac- count—leave the balance unchanged; for, 93. It is evident that when the Dr. and Cr. sides of an account are equal, they cancel each other; also that equivalent amounts on the two sides cancel each other. 3:2 33 It is equally self-evident that adding the same amount to both sides of an account does not change its standing*. 94. To Close an Account is to balance it by making the Dr. and Cr. sides equal, carryuifj the balance to the opposite side of some other account. 95. Closing one account into another has sim- ply the effect of presenting in the second account the same balance, and upon the same side, as was previously found in the first. That is, if Mdse, showing a Cr. balance of $100 is to be closed into Gain-and-Loss Account, this entry will be made: Mdse. Dr. to Gain and Loss, $100; which will close Mdse, Account, both sides being equal. Then Gain-and-Loss Account will be credited by Mdse. $100, which gives a credit amount in Gain-and-Loss Account corresponding with the original difference to the credit of Mdse. 96. Balancing and other entries not recording actual transactions are preferably to be in red ink or otherwise distinguishable. But this is of minor importance. The manner of ruling in balancing will be seen in the examples given. It is important, for the appearance of the Book of Accounts, that this— and, indeed, all the work— be neatly done. 97. Cash Account should be frequently balanced, to detect omissions or mistakes. 34 The Dr. balance of Cash Account is the amount on hand. Ca«h can never properly show a Cr. balance, as no money can be paid out in excess of that received. 98. A Trial Balance is a sheet upon which the balances of the several accounts have been drawn off, showing the exact state of the Book of Ac- counts. The Trial Balance measurably attests the cor- rectness of the book, and should be taken monthly. Of course this sheet is self-balancing if the work has been correct. A page in the Book of Accounts may be devoted to preserving the Trial Balances if desired. CHAPTER VIII. CLOSING THE BOOK OF ACCOUNTS. 99. The task usually most dreaded by the young book-keeper is Closing the Books. The difficulties are more imaginary than real if the relations of the two classes of accounts, Real and Representative, are kept clearly in view. 100. Real Accounts represent actual Assets or Debts. These must have a known or assumed value at the time the record is made, which is, of course, a part of the Resources or Liabilities. 101. Representative Accounts have a value to be determined in the progress of the business. They are either Speculative— that is, represent property or interests bought, held, or sold for profit— or Expense Accounts, which record the cost or expense of the enterprise. These, there- fore, belong to Gain or Loss. 102. Mdse. and similar Accounts are "repre- sentative" of gains or losses which are unascer- tained. They exhibit the cost of purchases on the Dr. side, and the proceeds of sales on the Cr. side. The difference or balance of the account will show the Gain or Loss— that is, when we first know what goods there are remaining on hand, to be de- termined by an Inventory, and the incidental cost of selling, shown by Exx)ense Account. 35 36 103. It is clear that the profit upon goods sold enters into Gain-and-Loss Account as a Gain, and the expense of selling as a Loss. The determined value of Mdse. remaining on hand as per Inventory becomes a real possession, or Resource. The expense, if ascertained and un- paid, constitutes a real debt, or Liability. 104. The purpose of a general closing of ac- . counts is, (1) To determine the Gain or Loss which has been realized, and to express this amount in Capital Account— that is, to add it, if a gain, to thQ Capital, or subtract it, if a loss. This result is found in the balances of the Representative Accounts. (2) Also to determine from the balances of the Heal Accounts the Assets and Indebtedness, the Dr. balances showing what we owe, and the Cr. balances what is owing to us. 105. The first step is to Inventory all assets, such as Mdse., Real Estate, etc., and credit each account with the value unsold or remaining on hand. All such entries not recording a transaction or requiring an opposite entry may be in red ink. 106. Preliminary to closing prepare what is called a Balance Sheet, which is simply an exhibit under two heads of the balances of all accounts. Under the one, headed "Balance Account" or "Resource and Liability," place the balances of all assets and debts— that is, the balances of Real Ac- counts. 37 Under the otlier, styled " Gain and Loss," place tlie balances of Representative or Speculative and Expense Accounts. 107. To tlie Dr. of Balance Account upon this sheet transfer the Dr. balances of Accounts due, and of Bills Receivable— that is, of all accounts showing" Resources; also the amounts on hand as per Inventory which have been credited to Mdse. and similar accounts. 108. To the Or. of Balance Acct. place the Cr. bal- ances of Bills Payable and of accounts against the business— that is, Real Accts. showing Liabilities. Also enter to the Cr. side of Balance Account the balance of Capital Account. But note this amount in the Transaction column, and do not extend it in the Credit amounts till the Q-ain or Loss of the business is determined and added to or subtracted therefrom, as will be seen (1[ 110). 109. JSText transfer to the Dr. of Gain and Loss Account on the Balance Sheet the Dr. balances of all accounts showing* cost, such as Expense, etc. To the Cr. of this account place the Cr. balances of all accounts showing* Income or Gain, including Merchandise and similar accounts after Inventory. That is, enter on the same side of Gain-and-Loss Account any excess or difference the several Rep- resentative Accounts may show. no. Close the Gain-and-Loss Account on the Balance Sheet to Capital Account, or divide it among the Partners' Accounts. If there has been a gain, add the amount to the original Capital balance in Balance Account (see 38 If 108); and if there lias been a loss, subtract the same and extend the result, which will close Balance Account. 111. Now, to actually close the accounts in the book : Open a book account, headed Gain and Loss, and transfer to it the balances of the Representa- tive Accounts. In other words, close these accounts into Gain-and-Loss Account, which will then corre- spond with that part of the Balance Sheet, and is to be closed into Capital Account direct. 112. Next, close all Real Accounts To or Bij Bal^ ance, and the book is ready for new business. It can be opened by "brining down" the bal- ances showing Resources and Liabilities, as directed in opening the book. Or, to repeat : make a closing* entry To or By Bal- ance upon the lesser side, and after footing and balancing make an entry By or To Balance of the same amount on the opposite side. 113. Gain-and-Loss Account represents a past increase or diminution of Capital. The Cr. side shows what has been gained, the source of gain or receipts being credited ; the Dr. side, what has been lost, losses or payments causing a Dr. entry. Any increase of Capital must be shown in Capi- tal Account by a corresponding increase of Re- sources—that is, if the business has been con- ducted at a profit, the assets of Cash, Mdse., or balances of accounts must show a gain. If there has been a loss, it is evident that a cor- responding increase of Liabilities or diminution 39 of Resources must appear in Balance Account, thus reducing- tlie Capital by tlie same amount. 114. Resource-and-Liability Account refers to future expectations and obligations, constituting" present known Capital. Tlie Cr. side includes what the business owes (other people or accounts being credited), and the Dr. side what is owing to the business (others' debits). 115. Preserving this distinction will greatly aid in making the work clear: Past Gains are Cr, ; past Losses are Dr. Future Liabilities, Cr, ; future Resources^ Dr, Hence a past Grain (Cr.) implies a corresponding future Resource (Dr.); a past Loss (Dr.) implies a corresponding future Liability (Cr.). 116. To repeat: Capital, or Proprietor's, Account shows the Capital at commencing; the Dr. side shows the debts; the Cr. side shows the effects. The difference is the Net Capital. 117. Gain-and-Loss Account shows the Grain or Loss. The Dr. Balance shows Loss; the Cr. shows Gain. The difference shows the increased or dimin- ished Capital, and is carried into Capital Account. 118. The Dr. of Balance Account shows Re- sources; the Cr. shows Liabilities. The balance shows the actual assets, or Capital, and corresponds to the balance of Capital Account, but upon the opposite side. Capital is expressed on the Cr. side of Capital Account, and on the Dr. side of Balance or Re- source-and-Liability Account. 40 The final proof is the agreement of the Capital and Balance Account ditferences. 119. The Order of Steps, then, in closing is as follows: IsU Inventory Assets, and enter the amounts (in red) to the Cr, of the respective accts, 2d, Make up a Balance Sheet showing a Gain-and-JLoss Acct. and a Balance Acct, 3fl. Close all accounts sfiowing Gain or Loss into Gain-aud-TjOSs Account, 4th, Close all accoutits shotcing Besources or Liahilities into Bal- afwe Account. (Carry down these balances for the opening of new accounts.) Sth. Close Gain-and-Loss Account into Capital Account, 6th, Capital Account and Balance Account will mutually close each other. 120. Where the business is large, some days or weeks may elapse before the Book of Accounts can be closed. Meanwhile, the daily transactions continue, and the daily record must be kept. In such a case omit three or four lines for the closing entries of such accounts as have balances to carry forward, and resume the entries below, with an opening line left for the balance to be entered when the amount is determined. In this way the continuity of the record is not interrupted, nor do the current entries interfere with closing. CHAPTER IX. ADVANTAGES OF THE BUSINESS-STANDARD SYSTEM. 121. Double-Entry Book-Keeping is the art of keeping" accounts by means of a full or complete record— that is, a Debit and Credit entry for each transaction. By this system alone can the state of the busi- ness be known, or the means afforded to determine the gain or loss. 122. Single-Entry Book-Keeping, so called, is an incomplete record, where an entry is made only to the Dr. or Cr. side of a single account. By reason of its imperfect character, Sing-le- Entry Book-Keeping* is unworthy the name of a ^nethod of keeping accounts. It fails to secure the very ends desired in book- keeping, which are assurance of correctness in the process, and read^^- attainment of results in deter- mining- the state of the business. 123. At least three books, and often four oi- uiore, are reg-arded as essential in nearly all ex- isting* methods of keeping* accounts by Double Entry— viz. : (1) The Day Book, for a daily record of trans- actions as they occur. 41 42 (2) The Journal, to wMch. tliese records are transferred in wliat is called journalized form — tliat is, with, the name of the proper Dr. and Cr. Accounts. (These hooks are now frequently combined in one.) (3) The Cash Book, for all records of Cash trans- actions. (4) The Ledger, to which are transferred from the Journal, or Cash Book and Journal, all the amounts, hut not the items, recorded in the Day Book. These are carried to the Dr. or Cr. side of the several accounts, which are kept upon separate pages of the Ledger. This work is called Post- ing. 124. The original entries are sometimes made in four books— Cash Entries, in the Cash Book; Mdse. bought, in the Invoice or Mdse. Book ; Mdse. sold, in the Sales Book; and Miscellaneous Trans- actions, in the Day Book— and from each of these posted into the Ledger. 125. Life is too short for three, or even two, records of every business transaction, unless there is absolute necessity for such repetition. The simple yet complete system here embodied requires but one Book of Accounts. In this the daily record is made directly to the proper accounts, where all items are preserved, facilitating a determination of Balances, and mak- ing out Bills and Accounts Current. 43 126. Tlie method presented in tills text-book Is an orig-inal adaptation of tlie simplest form of ralin^ (known to tlie trade as Journal or Casli- Book Ruling", or witli an Index as the " Single-Entry Ledg-er ") to a perfect Double-Entry Sj^stem of keep- ing accounts. It conforms the statement of all accounts to the universally approved manner of stating a Gash Account. 127. Any intelligent accountant can adapt the Direct-Entry Method, the Single-Page Account, and the simple form of ruling here recommended to any ordinary business not so extended as to render more complex forms desirable. 128. The Original Entry of the full transaction, required by other systems to be made in some one of several books, and thence transferred to the two Ledger Accounts, is here made directly to the proper accounts. The second entry, to Cash or Mdse. Account, as required in 1[ 79, corresponds to one of the two Postings required in other forms. 129. As Cash and Mdse. Entries usually consti- tute the larger part of a business record, there is a great saving of time by this method. In the few cases where the items have to be re- peated in the second entry, the advantages of per- fection of record and convenience of reference more than compensate for the sliglit labor. It is usually only in Mdse. Entries that the items are numerous. 44 130. The first merit of this system is its exceed^ ing simplicity. The form, is the easiest ever proposed for a writ- ten record of account. It conforms to the universally accepted method of keeping" a Cash Accomit, and is equally clear and desirable for all accounts. 131. The next advantage is economy in labor and in space* The simple direct entry is the most easily made. As the entries follow one another immediately, whether extended on the Debit or on the Credit side, there is absolute economy of space. 132. The next merit is greater accuracy^ as every copy or transfer of an item from one book to an- other increases the liability to error. Every account is fully stated where it belongs, and there is no delay in referring- to other books or waiting for the posting of an account. 133. Another point of superiority is that the account thus stated is in the Account-Current form —the one most easily understood— is always posted, and is tnost readily balanced, 134. In short, the system here presented is the most simple, the most accurate, the most economical in space, the most convenient in use, and ensures the most satisfactory results. 135. Any existing Single-Entry Books can be changed to Double Entry by opening a Resource- 45 and-Liability Account, and transferring to it the Balances of all accounts on the hooks showing Assets or Dehts, and all amounts ascertained hy Inventories. The difference between the two sides of this account will show the Net Capital, which can he placed to the credit of Capital Account. If there are partners, it can he divided according to their several shares. The new accounts to he opened will he Mdse., Farm, Lumber, or Material, or whatever accounts represent avenues of income or gain, and Expense, Commission, Labor, Insurance, or whatever ac- counts represent outgoes or cost. If Notes are given or received, open Bills-Pay- able or Bills-Receivable Account. 136. The essential principles of accounts and the simplest method of recording them have been here so presented that it is confidently believed one may be prepared by the study of this little book to comprehend any system of book-keeping, and to undertake the charge of any existing Books of Account. CHAPTER X. THE BOOK OF ACCOUNTS ILLUSTRATED. 137. A popular handbook of Book-keeping" should as far as possible deal with familiar business events. In the succeeding illustrative exercises there is, therefore, no attempt to present the more com- plicated phases of business life, with the elab- orate appliances— for example— of the banking- house or the railway-office.^ In these departments as elsewhere the same simple principles apply, and a corresponding- sim- plicity of record is not only possible, but most desirable. Its value, however, as well as its sufficiency, is best exemplified in the more com- mon details of business life. 138. The few Illustrations here given are in- tended to serve simply as examples to indicate the ready adaptability of the Business- Standard System to the requirements of most branches of business. 139. The several Transactions, with appended directions, are desigTied as helps in overcoming- the more frequent difficulties which arise in actual practice. However simple these examples may seem to be, they are types of all possible commercial events, each of which may be solved by the same careful analysis. 46 47 140. Tlie Simple Cash Acct. (p. 49) will be recog- nized by all wlio have kept any business record, and should become familiar to' every student. 141. The Personal and Mdse, Accfs, (p. 50) illus- trate the form of common Dr. and Cr. entries and the condensed form of entr^^ to Mdse. Acct. 142. The Transactions for a Boy^s Acct, (p. 51) afford an exercise of the simplest character for preliminary practice. 143. The Mercantile Series of Accts, (p. 52) is intended to afford a measurably complete illus- tration of the course of ordinary business, includ- ing opening the book of accounts, the history of the business, and closing the record. 144. The Partnership Acct. (p. 62) simply points out the variations involved by a divided interest in the business. 145. The Transactions for a Farm Acct, (p. 64) are suggestive of the many ways in which this form of account may serve the interests of the farmer. 146. The Transactions for a Mechanic's Acct, (p. 66) indicate somewhat the record required by the business of a mechanic or small manufacturer. 147- Transactions for General Practice (p. 67) sup- ply data for a series of ordinary accts., the busi- ness being conducted at a loss. 148. Transactions (p. QS) give a similar illustra- tion where the business resu]ts profitably. 48 149. Transactions (p. 70) offer to the student sug-gestions for~ a brief series of accts. in a part- nership business. 150. As the method of recording in all these cases is absolutely uniform, there is no necessity for a lengthy series of exercises. Little difficulty will be experienced by teacher or student in multiplying illustrations to any desired extent. These should at first be within the range of the actual experience of the learner, and grad- ually extended to new and untried fields. t4ll business transactions are resolvable into Debit and Credit entries of equivalent amounts- Mi forms of record are modifications or compli- cations of the Simple Form here presented. One Booh of Accounts of this simple fomn is adequate for most business purposes, and ensures accuracy, economy, and facility in practical use. EXERCISE No. 1 -SIMPLE CASH %. Cash. nr. Ci\ Jan, 1 To Amount on Hfind, 75 50 ff 2 By Paid for Board, 10 tf S ft ft Overcoat, 15 tf -^ ft ft Washing, .75 ff ft Car-fare, .50 1 25 By Balance, 49 25 = 75 50 75 50 To Balance hroU down. 49 25 ff 7 To Reed, 1 Week's Salary, 18 ff 8 By Paid for Postage, .75 ft ff Book, 1,00 1 75 ff 9 tf ft Board, 10 tf 11 ft ff Washing^ To Reed, return of loan, 5 50 By Balance on hand, 60 To Balance on hand, 72 60 25 72 25 ff u To Reed, for Salary, 18 ff 16 By Paid for Board, 10 ft 17 ft Sundry Expenses, 1,25 ff Contribution at Church, MO 1 75 By Balance, 016 25 To Bat. on handbrU down, 78 66 25 78 49 EXERCISE No. 2.-PERS0NAL AND MDSE. %s. CyniJLS Fuller*, JDr. Cr. Feb. s To 7 lbs. Gran. Sugar, @. llpf ff i ff Oolong Tea, 75 ff S ff Java Coffee, SO ,77 .38 .90 [ > ff i ff Chocolate, 88 .19 2 H >-■ ' .*-' tl 7 ff 1 Gal. West Ind. Mohxsses, ff Ih lb. Raisins, @ 16 .75 ff 1 paper Pepper, .12 1 11 tl 9 ff 1 Bbl. Star Mills Fhur, 7 50 ff 10 By Cash on %, 5 n 11 To 5 lbs. Bice, @ 09 ff 2 Gal. Vinegar, 18 45 ,36 ff 1 phge. Pulv. Borax, ff 10 lbs. Lc^d, U ,25 1 06 ft 12 140 ff 1 paper Starch, .20 ff 5 Gals. Kerosene, 20 1.00 2 60 By Balance^ 9 51 M 51 lA 51 To BaL brof. down. 9 51 Folio 2. 2£ercKctncUse, Dr. Cr. Feb. 3 By Sundries. C. Fuller ^ 2 u ff 7 ff ff ff 1 11 ff 9 ff ff ff 7 50 ff 11 ff ff ff 1 06 ff 12 ff ff ff 2 60 To Balance^ 14 51 lA 51 lA 51 By hdl, brot. frd.^ 14 51 50 EXERCISE No. 3. TRANSACTIONS FOR A BOY'S ACCOUNT. Oct. 1 Had $4 Cash on hand. >f ff Bought of James Brown a Fruit- Stand for $3, paying- $1 down. ff ff Bought 1 Bbl. of Apples for $2.50 ff ff Sales for the day amounted to .56 2.75 1.75 2.00 tl 2 ff tt It tt 1.07 tt 3 It . It It It 1.28 n It Bought 1 Bbl. of Apples for tt 4 Sales for the day, 1.46 tl 5 II II 1.27 It It Bought one-half Bbl. of Pears, tt 7 Sales for the day, 1.23 tt '' Paid Balance on Fruit-Stand, It 8 Sales for the day, .83 It 9 It It 1.19 n 10 It It .99 It It Fruit on hand, .63 What is the amount of Cash on hand ? What are the total resources, or what the increase of Capital acct., or profit on 10 days' sales? 51 CO h 2 D O O o < o if) CO OC CO W Id w — h z < o OC u o ft O O o o < p 5 S Q - ^ > 4^ H ^. o M ^ 03 r/) H . O ''"1 CD .S 2 C3 3 r^ I:- o a s- lo iH o lo fcr (M IJ lO t- CO tH T-* CO ^ ts P 0) ^ U] o o •Th (/) xi fr: o o pq ft O o 4^ Pi a; > u ft GO c5 , 1=1 0) u PI (D *"" ^ a; 'd (D P P£lft *^ oP P «H d 02 as ft OJ ce A o CD 02 53 Folio 1» CcLpttaZ, Jan. 1 ^ By House and Lot on FSL, tf Store Fixtures, ti Mdse. as per Inventory, ff Cash on hand, n A. Baldwins Note, n C. Dennis Bat. %, To Mortgage on House and Lot, It Bills Payable, \ n H Ferris Bal %, To Balance^ Neio%. Feb, 1 By Real Estate {Net), Fixtures, Bills Receivable, V. Williams, Cash on hand, Mdse. a^ per Invt., To Bilk Payable, ff G. Polhamus, Dr. Cr. To Balance^ 1066.25 204.88 By Bal. {Net Cap.), 500 300 163 1066 2029 200 100 1271 IS 25 25 157 11 202925 VIOOO V 125 111 650 75 67 75 50 600 125 80 80 651 35 13 157113 1271 13 54 Folio 2. 2£erchcL7X(lise, JDr. Cr. 1886. -^ To Amt. of Goods on hand Jan. 1 2 ^ as per Inventory, n G. Polhamus, Ill 700 75 V V S so By Sales 25 Bhls. Flour, Jf @ $7.50, Cash, ff IT. James, V 187 V ISO 50 6 9 17 So tf V. Williamis, To 50Bhls.Flour, @ $7, Cash, By same, n To 200 Bush. Wheat, J. Den- nis, @ $1 ; Fd. Cash, n Fd. DJt. on C. Dennis for S50 1S2 50 V 80 V V JfiO V 18 St) Bal, BylOOBu. Wheat, @ $1.25, Cash, 67 50 V V 125 20 *3 ft Sund. Cash Sales, V 125 28 to ,1 10 Bhls. Flour, @ $8; SO SO Q.R:sNote,60Ds., „ 50 Bhls. Flour, @ $8; Cash, V. 80 V JfiO — 1 =z To Balance, By Bal, brot. dotvn, ft By Amt. on hand as per Inventory, To Gain and Loss %, To Goods on hand as per Invt., 165 75 1527 50 1527 50 200 75 165 35 75 200 75 200 75 Feh. 35 55 Folio 3. Cash. Dr. C-n. Jan. 1 '^ To Amount on hand, 650 }f 3 ^ fi Mdse., 187 50 V 5 It H. James, 60 V 9 ^j By Mdse,, V S50 10 91 00 To Mdse., By Bills Paijahle, 400 V V 16S 11 ^. ff J. SmitKs Consgi., V 25 12 ^ To J. Smith Consignment, 800 V IS ^ By the same, V 7S5 16 00 ti Expense, If Bills Payable, $100; less BiscL, $S.6S, V 20 V 96 S7 17 <^* II Mdse., y 1S2 50 18 To Mdse., By Real Estate, $100; Interest, $15, 125 ^ 115 20 ^ II Expense, V s <^ To Mdse., 125 V 25 n H. James, 70 V •^ n Bills Receivable, 75 V SO II Mdse., By 0. Polhamus, 400 V V 600 15 II Exps., Petty Cash, V 1 50 = 11 Balance^ 651 13 2892 50 2892 50 New%. Feb. 1 To Balance hroU down^ 651 13 56 Folio 4. Jteccl ^Estate. Dr. Cr. Jan. ^ To House and Lot on J^ St., ^ £^/ Mortgage on same, ^ To Cash Payment on Mort, By Balance^ New %. To Balance, 1000 100 1100 600 V V 500 V 600 1100 Folio 5. Store Ftj^tuLi^es, nv. Cr. Jan. 1 '"i To Fixtures as per Inventory, 125 V Folio 6. BtTLs Recetvcible. JDr. Cr. Jan. 1 25 20 To A. Baldwins Note due Jan. 25, By Cash, To Q. B. Note for Flour, due Mch. 28, 75 V V 75 80 V Folio 7. CKcLvles DenrUs. Dr. Cr. Jan. 1 17 '*S To Bal. %, By Dft. given J. Dennis for Wheat, 67 50 V V 67 50 57 Folio 8. Hills JPayctble. Dr. C-n. 1886. Jan. 1 ff 1 tt IS II 7 n 10 = By Note to G. Mills, due July 1, ff Note to K. Lee., due Aug. SI ^ To Discounted Same, Cash, • $96.S7; Disct, $S.6S, °^ By Acceptance H. Ferris' Dft. ^ To Paid Same, To Balance, By Bah G. Mills due July 1, 100 16S 200 46S Jan. ^ By 100 Bhls. Flour {Star M.) @$7, *3 To Cash — Rertiitted Check, To Balance, By Balance f 600 100 700 V200 yflOO vies 46S 200 Folio 9. Servry Ferris. Dr. Or. Jan, II 1 7 ^ By Balance %, 00 To Acceptance National Bk., 16S V16S V 1 Folio 10. Greorge FolKctinzLS. JDr. Cr. V700 V 700 100\ Folio 11. H^ertry tTctmes. Dr. Cr. Jan. A II 5 II 25 ^ To 100 Bush. Wheat, @ $1.S0, •s By Cash, 58 ISO ISO V V 60 V 70 ISO Folio 12. 'Vtrtcertt 'Wzlltctms. Dr. C-n. Jan, KJ By 10 Bbls.Flour @ SO ds.JS ^ To Error in entering above, ^ To 10 Bhh, Flour at SO ds., $8, By Balance, To Balance, V 80 80 V 80 80 160 160 80 Folio IS. tToTLTh SmitTc^s Corisgt. Dr. Cv. Jan. ^ To Pd.Freighton 100 Bbls.Flour, ^ By Ami. reed. Sales same, ^ To 5% Com. on Sales, ^ " Remitianee Proceeds, 25 JfO 7S5 800 V V800 V V 800 Folio 14. Dxterest cltxcZ Com. Dr. Cv. Jan. IS n 16 If 18 = By 5(fc Com. Sales J. Smith Consgt., II Disct. on Note due Aug. SI To Paid Interest on Mortgage, To Gain and Loss, V 40 V S 15 V ■ 28 63 iS 6S J,S 63 Folio 15. Dr. Ci\ Jan, ^ To Paid Rent of Store, ^ II II Cooperage, ^ II II Sund. Items Petty Cash, By Gain and Loss, 59 20 V 3 V 1 50 V u 50 24 50 H 50 Trial BaZciTice, Totals. Page 1 Capital, 963 2029 25 ff 2 Merchandise^ 1361 75 1527 50 1 S Cash, 2892 50 221^1 37 t 4 Real Estate, 1100 500 t 5 Fixtures, 125 1 6 Bills Receivable, 155 75 1 7 Chas. Dennis, 67 50 67 50 f 8 Bills Payable, 263 463 1 9 Henry Ferris, 163 163 f 10 Geo. Polhamus, 600 700 t 11 Henry James, 130 130 1 12 Vincent Williams, 160 80 t IS J. Smith Consignment, 800 800 f U Interest and Commissioriy 15 43 63 f 15 Expense, H 50 8820 25 8 82025 ScLlartces. Page 1 Capital, 1066 25 1 2 Mdse., 165 75 1 3 Cash, 651 13 1 4 Real Estate, 600 t 1 5 6 8 Fixtures, Bills Receivable, Bills Payable, 125 80 200 1 10 12 Geo. Polhamus, Vincent Williams, 80 100 ft 14 Interest and Commission, 28 63 u 15 Expense, 2450 156a63 1560 63 60 ResoTJLVces ctThd Ltctbtlittes, Merchandise as per Inventor^/, Cashy Real Estaie^ Fixtures, Bills Receivable, V, Williams, Rills Payahle, G. Rolhamus, Capital, 1066.25 204.88 85 651 600 125 80 80 IS 200 100 1271 IS 1571 IS 1571 IS CrctzTL artcL Loss. Dr. Cr. = 163.73 By Merchandise^ S3. It Int. and Com., To Expense, ff Capital^ 24: 204 30 88 200 28 75 63 229 38 229 38 61 EXERCISE No. 5. PARTNERSHIP ACCOUNT. James Carson and Samuel King* enter into part- nership, Carson contribnting" two-tliirds the Capi- tal ; King", one-third. Their interest in the business is to correspond, each, to draw the. same salary for personal services. Carson contributes $6000 Cash; King, $2000 in Mdse. and $1000 in Cash. Three months later Carson withdraws $2000 for personal use. At the end of six months the profits amount to $1800. The personal account of each shows $600 cred- ited for salary, and Carson charged with ^50 and King with $700. The accounts of James Carson, Capital, and Samuel King, Capital, stand as seen on the fol- lowing page. 62 e7^ CCLTSOTL, CcUpttoZ, Dv, Cv. Jan. 1 By Capital Contributed^ Apl. 1 To Cash Withdrawn, June SO n Int. on Withdrawal, By Bal. Personal %, ff ^Is Profits, To Balance^ By Balance f 2000 SO 5320 7S50 6000 ISO 1200 7S50 5320 S. J^tng, Capttal. nr. Cv. Jan. 1 By Capital Ccmtrihuted, Cash and Mdse., June SO To Bal. Personal %j By 'Is Profits, To Balance^ By Balance f 63 100 3500 3600 SOOO 600 S600 3500 CD 6 % W m O PC W X w h z D O o o < s < O u. 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May 1 Commenced with, a Cash. Capital of $4,000. 2 Bought Mdse. of A for Cash .... 800. 4 Sold Mdse. to B on % 170. 5 Bot. Mdse. of C on ISTote 30 Ds. . . . 150. 6 Sold Mdse. to D for Cash ...... 247.50 tf 8 Paid Cash for Stationery 15. n 10 Bot. Mdse. of E for Cash 1,800. Paid Cartag-e 3. n 11 Sold Mdse. to F on his Note 30 Ds. . 950. n 12 Sold Mdse. to G for Cash 37.50 ff 13 Paid for repairs 15. n 15 Bot Mdse. of H on % . 250. n 17 Sold Mdse. to K on % 133.75 n 20 Sold Mdse. to L for Cash 475. n 22 Becd. Cash of B for % 170. n 23 Paid H Cash on % 100. n 24 Paid for Clerk-hire 50. n 25 Sold Mdse. to M on % 500. Reed. Cash on % same 250. f, 30 Paid Rent 100. Mdse. on hand as per Inventory . . 645. Resources. Cash $2,297. Mdse 645. Bills R 950. Kon% 133.75 M on % 250. $4,275.75 Liabilities. Bills P $ 150. H on % 150. Stock 3,975.75 $4,275.75 67 EXERCISE No. a TRANSACTIONS FOR GENERAL PRACTICE (Gain). 1 Invested in Business, Cash. $5,000. Owe A on acct 500. 3 Bonglit Mdse. of B for Cash 1,400. 4 Sold Mdse. to C for Cash 800. 5 Sold Mdse. to D on acct 40. 6 B't Mdse. of E on Note at 3 Mos 235. 8 Accepted A's Dft. 10 Days 500. 10 Sold Mdse. to G on his Note 57.50 11 B't Mdse. on our Note 4 mos 1,000. 12 Paid Cash for Stationery 20. 15 Sold Mdse. to H for Cash 18.75 L7 Sold Mdse. to K on acct 115. 19 Reed. Cash of D on acct 20. 21 Paid Acceptance A's Dft 500. 22 Sold Mdse. to L for Cash 675. 25 B*t Mdse. of M on acct 96. 29 Paid Cash for Rent 100. " " n Fuel 4. t' ff tf Clerk-hire 60. Mdse. Inventories 1,333.50 68 TRIAL BALANCE. Dr. Cr. Stock, Net Investment . . $4500. Casli, on liand $4429.75 Mdse., ISlet cost 1024.75 D owes us 20. Bills Payable 1235. Bills Receivable 57.50 Expense 184. K owes ns 115. M due for Mdse 96. $5831. $5831. Mdse. acct. shows a gain as per Inventory. $308.75 Less Expenses, 184. Net gain $124.75 Let these exercises be expanded to full entries and the accounts closed. EXERCISE No. 10. TRANSACTIONS FOR GENERAL PRACTICE (Partnership). May 1 Thomas Brown and Henry Wright enter into equal partnership in the Grocery "business. Thomas Brown furnishes a stock of goods valued at $1500, upon which there is due July 1 a Note for $500. Henry Wright furnishes Cash $500, Fred'k Wheeler's Note for $250, and an Acct. against Byron Mills for $250. Cash sales for the day .... $17.50 w 2 B't of Geo. Jones on Acct. Fruit and Vegetables as per bill . . . $27.50 Cash sales for the day .... 34.63 tf 3 Sold Wm. Peters on Acct. 1 Bbl. Flour, $7.50; 1 lb. Tea, 75 cts. ; 3 lbs. Coffee, at .30; 7i lbs. Sugar, $1 ; 1 Doz. Canned Fruit, $2.50. Cash sales for the day .... 43.85 rr 4 B't ofGeo. Jones Fruit as per bill 15. Cash Sales 39.63 „ 5 " ff 54.20 B't Bill of Groceries for Cash . . 115.75 ff 7 Allowed Wm. Peters damage on Flour 1.50 Sold Amos Hill 1 Doz. Cans Tomatoes, $1.25 ; 1 Bush. Pota- toes, .50; 1 Basket Apples, .75. Cash sales for the day .... 37.20 w 8 t' " tf . . , . 58.25 B't of Geo. Nash Bill of Gro- ceries on Acct 75. ff 9 B't 10 Shares of Gas Co. Stock at $45. Paid for the same order on Byron Mills for his Acct. and Bal. in Cash. Cash sales for the day .... 43.11 70 May 10 B't Bill of Groceries for Cash . . $493.75 Cash. Sales $56.82 "11 >* „ -. . 49.70 Reed. ConsigTLrtient of Maple- Sugar from Isaac Ramsey 480 lbs., at 12 cts. delivered. Paid freig-ht on same, $2.75. ff 12 Sold Wm. Peters 5 Ihs. Butter, at 27 cts. ; 2 lbs. Cheese, at 18 cts. ; 1 Gal. Syrup, 75 cts. Cash sales for the day .... 67.43 " 19 ff ft n week . . . 279.64 " 26 n u u ,r . . . 235.50 " 28 B't our ISTote due July 1, paying for the same 10 Shares Gas Co. Stock. Cash sales for the day .... 51.87 » 29 Fredk. F.Wheeler Paid his ISTote and Int , 1.75 Remitted to J. Ramsey amount of Acct 54.85 Cash Sales 53.17 rr 30 B'tBillof Groceries for Cash. . 487. Cash sales for the day .... 40.28 // 31 n n „ .... 68.38 Paid Geo. ISTash for Acct 75. If Rent of Store 75. If Sundry Expenses, as per Petty Cash 3.75 Thos. Brown's Acct. for Gro- ceries for the month 25.50 Henry Wright's 37.84 Mdse. on hand as per Inventory 1650. Let these accounts be written out in full. The bal. of Loss-and-Gain Acct. should be $161.99. Similar exercises can be multiplied at pleasure. 71 APPENDIX. THE illustrations for practical exercise already ^ven are, in view of the simplicity of tlie method, far more abundant than will be found in most text-books. It is to be remembered that with the Business Standard System the student is not compelled to become familiar by practice with several distinct and dissimilar forms, but with one form only. In order, however, that neither the backward student nor the overburdened teacher may feel any lack of the most ample provision for every possible real or fancied need in the practical acquisition of the art of book-keeping", the fol- lowing additional Transactions for a Mercantile Series of Accounts are appended. It is believed that with ordinary classes they will not be required. In actual business subsidiary books may be employed to any extent found convenient. A Sales-Book, for example, for the record of sales as they occur, can be kept upon the same form. An illustration is quite unnecessary. Where a Sales-Book is kept, entries in the Book of Accounts may be made in brief, referring* to the page of the Sales-Book for items, as in the exercises which follow. 72 73 TRANSACTIONS FOR A MERCHANT'S ACCT. April 1. I commence business with the following- effects: Merchandise as per Inventory, $5,214.36 Cash, 2,500. ISTotes against sundry persons, 2,300. Chas. Weston owes me on %, 850. $10,864^6 I owe as follows: Lee & Judson on %, $475.50 Payson & Orton on ^, 287.50 5. $763. Bot. Mdse. of Reed & Co. on my Note at 4 mos., $541.30 Bot. Mdse. of Sage & Lyon // // 6 n 634.96 9. Sold Jos. Isaacs on % Mdse. as per Sales- Book, p. 1, $239.18 12.— Sold W. K. Vermilye on Note at 6 mos. Mdse., S.-B., p. 1, $201.43 14. —. Sold Sam. A. Betts for Cash Mdse., S.-B., p. 2, $221.88 16. Sold Chas. K. Camp on % Mdse., S.-B., p. 2, $602.82 Sold S. P. Avery for Cash 1 ps. Carpeting, 91yds., @ .94, 85.54 19. Bot. of Geo. W. Peck on % Mdse. as per Invoice, $213.14 Sold Jos. Isaacs on % Mdse., S.-B., p. 3, 154.46 20. Deposited in National Bank, $2,000. 74 23. Sold H. H. Lee on % Mdse., S.-B., p. 3, $167.50 24 Bot. of Wm. Richmond 400 Bbls. Flour, @ $5. Gave in payment Check on National Bank, $1,000. My Note for 30 days for "balance, 1,000. ( Open a Flour Acct,) 26. Reed, from G. W. Peck Consig'nment. of Wad- ding to be sold for his % as per Invoice, $170.80. Paid Cash for Freight and Cartage, $18.75 Sold Fredk. Ashton on % Mdse., S.-B., p. 4, 24.75 27. Consigned W. T. Coleman & Co., N. Y., 400 Bhls. Flour, @ $5. Paid Freight, Cartage, etc., $205.25 Sold Chas. K. Camp on % 1 Bale Ticking, 450 yds., @ 15^, $67.50 1 Case Satinets, 600 ^ „ 62}, 375. 442.50 30. Accepted Lee & Judson's Dft. 10 Days., $475.50 {Leave one blanh line in Bills Payable % after each entry,) Sold S. A. Betts for Cash, Mdse., S.-B., p. 4, 164.50 Cash Sales of Mdse. for the month, 896.58 Paid Store Expenses as per Petty Cash, 124. Deposited in National Bank, 500. May 1. Bot. of Rudd & Carleton on % Mdse. as per Invoice, $496. 75 In Company with H. C. Oakley Bot. 5,000 lbs. Wool at 25/. (lam to have 5 per cent. Com. on Sales, and we share equally the Gain or Loss.) Paid Casli for my lialf, $625. H. C. Oakley paid Ms half, 625. {Open '' Wool % '' or " Mdse. Co. A %.") 5. Sold W. K. Vermilye on % Mdse., S.-B., p. 4, $227. 7. Sold C. K. Camp on % 2 Bales Peck's Wad- ding, 1200 yds., @ 3i^, $42. 8. Sold H. H. Lee on % Mdse., S.-B., p. 5, $352.75 lO. Sold Jos. Isaacs on % 1 ps. Broad Cloth, 25 yds., @ $4, $100. 2 " Cassimere, 56 >> ff 2, 112. $212. 14. Paid Lee & Judson's Draft accepted Apr. 30, $475.50 Sold H. Perkins, on his Note 4 mos., Mdse., S.-B., p. 6, 427. 15. Sold B. F. Udell for Cash 5,000 lbs. Co. A's Wool, @ .31, $1,550. Paid Cash for Sacking, Ctge., etc., $5.25 My Commission, 77.50 82.75 17. Reed, of Chas. K. Camp Cash on %, $500. Sold Sam. A. Betts for Cash, Mdse., S.-B., p. 7, 250. Made np an Account Sales Co. A's Wool : Total receipts from Sales, $1,550. n Cost, Charges, etc., 1,332.75 Net gain, 217.25 My half of profit is 108.62 H. C. Oakley's half, 108.63 217.25 76 18. Bot. of H. J. ISTourse 200 Bbls. Flour @ $4.75. Grave in paj^. Dft. on Chas. Weston, $850. Cash for Balance, 100. $950. 21. Sold Wells & Lyon for Cash, Mdse., S.-B., p. 8, $22.65 Becd. Cash, of Jos. Isaacs on %, 100. Sold Thos. Franklin on % 10 Bbls. Flour, @ $5.50, 55. 24. Paid Rudd & Carlton's Sight Dft. for $496. 26. Reed, from W. T. Coleman &> Co. Acct. Sales Flour consigned them Apr. 28. Net pro- ceeds, $2,775. They remitted Check. Sold A. B. Moody for Cash, Mdse., 103.50 31. Cash Sales for the Month, $2,000.62 Store Expenses (from Petty Cash), 250.75 Family Expenses (Personal %), 124. Deposited in National Bank, 1,000. June 1. Paid my Note given W. Richmond Apr. 24, $1,000. Sold W. K. Vermilye on % 1 ps. Carpeting, 87 yds., @ $1, $87. 6 yds. Oil Cloth, .75, 4.50 91.50 Sold H. H. Lee on % remainder of Q. W. Peck's Wadding for 175. 2. Sold Chas. Clark for Cash 190 Bbls. Flour, $5.25, $997.50 Made up an Acct. Sales G. W. Peck's Consign- ment Wadding. Total Sales, $217. Charges paid, 18.75 198.25 My Commission at 5 per cent., 8.75 Credited G.W. Peck net proceeds , 189.50 198.25 77 Sold Clias. K. Camp on % 1 ps. Carpeting-, 96 yds., @ $1, $96. 1 " " 79 // n .75, 59.25 $155.25 Reed of H. H. Lee Cash on %, 250. Discounted my ISTote given Sage & Lyon Apr. 4 for $634.96 at 6 mos. Discount allowed, $18.52 Paid Cash, 616.44 $634.96 Paid Fredk. Asliton Cash on «^, 25. 8. Bot. of W. Richmond for Cash 250 Bbls. Flour, @ $5. Sold the sam.e to W. T. Coleman <^ Co. at $5.50. Reed, in payt. Mdse. as perlnv., $1,000. Draft on J. Cole at 10 Days, 375. {Mdse. and Bills R. Dr. Cash and Gain and Loss Or.) . lO. Sold J. H. Gillet on his ISTote at 4 mos. Mdse., S.-B., p. 8. $480. — 12. Bot. of Jos. Isaacs House and Lot on A St. for $1600. Gave in payment Cash $200, Check Nsitl. Bank $500, H. Perkins's Note $427. Bal. on % $473, $1,600. 15. Reed, of Thos. Franklin Cash for %, $55. H. H. Lee has accepted my Dft. 10 Ds., 250. 18. The National Bank has discounted J. H. Gillet's Note at 4 mos. Discount, $10.73 Cash received, 469.27 $480. 78 19 Sold H. C. Parks House and Lot on A St. for $2,000. Received Cash, $1,000. Mdse. as per Invoice, 1,0 00. $2,000. (Close Real Estate % into Gain and Loss,) 23. Bot. Mdse. at Auction for $250. Sold it Immediately for 30o. $50. 25 Sam. Smith, has paid his Note given Mch. 22d for $1,000 with Interest. 3 mos. and 4 ds. Int., $18.27, $1,018.27 Consigned F. S. Travis 100 Bbls. Flour bought on my Note at 30 ds., ® $5.50, $550. Paid Frt. and Ctge. in Cash, 52. 602. {Travis Consignment Dr. Bills P. and Cash Cr.) 26. Jos. Isaacs has paid his Note for $300 and Interest $5.43, $305.43 28. H. H. Lee has paid his Acceptance, $250. Bot. of G. W. Peck on % Mdse. as per Inv., 173.50 29. Chas. Weston has paid his Note, $1,000. With Interest, 18.08 $1,018.08 30. Cash Sales this Month, $1,260. Store Expenses ^ (Petty Cash), 275.50 Family Expenses " 98. Due Fredk. Ashton Salary as Clerk, 150. Mdse. on hand, as per Inventory, $978.34 KEY. Balance of Gain and Loss %, $1,179.93 THE BUSINESS STANDARD BLANK-BOOK. The Publishers of the Business Standard Book- Keeping furnish, to accompany it, a convenient Blank-Book for the requisite Book of Accounts. It is provided with an Index, and is sufficiently large for all necessai^ exercises. It is furnished at trifling cost, and is the only additional expense to the student. The Blank-Book is, in fact, a Model Book of Accounts in Miniature, the only difference, in actual business, "being an increased number of pages. While this Blank-Book will be found a con- venience for the learner, its use is not essential, as the ruling is precisely the same as that of the ordinary blank-books in market, referred to in 11126. The only requisite is the simple ruling given on the next page. 79 SAMPLE PAGE OF BOOK OF ACCOUNTS. Tttle of A.ccoJXTht. Dv, Cv. Month. Day. Transaction. 80 $ I NOV 9 iSjO 21-20 )»i- 6," 3- r vp IPA.% >^^7 -:?.>.-' Nl£^